America’s Economic crisis continues and with little relief in sight. As the 2011 end of the year holidays approached, many people realized there was no cash to buy their gifts and some resorted to pulling out the “emergency” credit cards.

If you were one of those who waited until the last minute hoping things would get better — they didn’t. You probably had to use your credit cards knowing you were not going to find anything on sale and you were going to end up paying higher prices.   

Now here you are four months later making the minimum monthly payments to credit cards that are close to their limits and paying very high interest rates.  This may be the perfect time for you to consider a Debt Management Program (DMP).

Putting your unsecured debt into a DMP just may work for you because it can lower the interest rates which would mean more money will be applied to the debt rather than the interest. Working with a certified counselor who will help you throughout the process as well as offering sound financial advice you will be better prepared for the holidays of 2012 – and beyond.

Of course, the best tip is: Next holiday season – keep those “emergency” credit cards in a safe place and use only the cash you have on hand.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

by Marisol Santiago, Foreclosure Prevention Services Manager

If you are a homeowner with a Fannie Mae backed loan, and in pre-foreclosure  (more than two months past due)— this could be the help you’re looking for.

There are many mediation programs out there to help homeowners come to an alternative dispute resolution with their lenders. One of the most successful is the Fannie Mae Pre-Foreclosure Mediation Program.

Homeowners who participate in this program can expect assistance with the collection of your documents together with a helpful, complete financial counseling offered by the Financial Counseling Organization that will work directly with the neutral mediation manager who has direct communication with your lender. In addition, you will receive the following benefits:

Be able to work directly with your lender and stay in communication with them;

Offers for resolution that can be presented prior to mediation or even the day of mediation;

A licensed mediator who will help guide you the day of mediation when working with your lender;

To reach a resolution on your mortgage within 120 days and avoid possible foreclosure.

The Fannie Mae Mediation Program helps homeowners come to a mutual agreement with their lender and avoid foreclosure. If you are not sure if your loan is backed by Fannie Mae, and for more detailed information about this and other Fannie Mae programs, as well as to get a list of Florida counties where this program is available – please visit: http://www.fanniemae.com/loanlookup.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

Shopping for a home or an automobile? For most of us, this means shopping for a loan as well. But that means that every time your credit gets an inquiry, your credit score drops.

How are you supposed to shop for the best interest rate if the very act of shopping for that rate means that the last lender you go to will see a lower score than the first?

Relax. If you know how the system works, you can rate shop and be sure that every lender will see the same FICO credit score and be able to take their best shot at earning your business. As an added bonus, you will barely see a change in your score later.

So how do you rate shop? It’s simple. Limit all of your mortgage or car loan shopping to a 14 day window.  Do not apply for anything else during your rate shopping. Not only will all the lenders in that two week period see the same FICO credit score, but when your score does take the hit for the inquiries, they will all be treated as if you only applied to one bank which minimizes the overall effect as well.

Remember: Don’t put in a new loan application every month. Over the course of a year, you will accumulate 12 score-impacting inquiries and you could be gradually eroding that good credit score. Also, rate shopping ONLY applies to mortgages and car loans. If you apply for 20 credit cards in two weeks, your credit score will be penalized 20 times.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

With the changes in the economy more and more seniors who are creditworthy find themselves ineligible for conventional financing for everyday items. Your inability to finance a car, home repairs, or medical expenses is difficult because of the debt-to-income ratios used by your local bank. “What do you mean I can’t get an equity loan on my home?” and “But they know me – I’ve been a customer of that bank for years!!” are what many seniors are saying. When your income changes so does your buying power? What can you do?

Debt-to-income ratios are not a factor in getting approved for a Reverse Mortgage. Even though you are retired and have a fixed income -  cars wear out, homes need maintenance and medical expenses still mount up. This is where the Home Equity Conversion Mortgage (HECM) Saver Program with its reduced closing costs could very well be an answer. The reputation that Reverse Mortgages typically have had is that they are expensive…that is until now.

Knowing the kinds of Reverse Mortgage Programs that are available will help you make a better decision. You will receive information about the different Reverse Mortgage options during your counseling session and there is no obligation to apply for a loan. The knowledge you gain in the counseling session may surprise even the most sophisticated consumer.

To review eligibility requirements and learn more about Reverse Mortgages, please go to our CCMS website at:

http://debt-mgt.org/housing-counseling/reverse-mortgage-counseling/.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

We thought that the economic crisis would be over by now, didn’t we? Instead, there are more Americans than ever still feeling the effect. With all the news articles about the economic crisis and advice on what to do, no one seems to be talking about using an Action Plan that shows your obstacles & strategies.

 As important as a budget is in seeing where you stand — an Action Plan is a great tool to help you begin taking the steps to where you want to be. Not just a “you need to do a better job of keeping track of the money you are spending” kind of fix, but the “here are specific changes you can make to start down your road to financial freedom.” A certified financial counselor can get you started by helping you prepare an Action Plan showing the obstacles you are facing and the strategies for you to overcome them.  

For example:  If your obstacle is that you have large utility bills, then the strategy would be to cut back on specific utilities [The suggested tasks would be:  raise the air conditioner a few degrees, request an energy assessment for your home, change your cell phone plan, etc.]. Setting up an Action Plan enables you and your family to make better decisions about your future financial success.

Once you have assessed your family’s values, learned how to set and reach specific spending goals, identified your income and spending patterns, you are ready to develop a budget. Oh no! It’s that terrifying word “BUDGET”. You can write a budget every month and try to stay within it. However, if you don’t have an Action Plan to work with, you will continue the financial struggle with no reachable goals, and financial freedom will remain just a phrase you read somewhere.  An Action Plan will allow you to control your money instead of your money controlling you!!!

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

Whether you want to start building your credit or you need to bring your credit score back up to a better number, opening a secured credit card can be a good and easy choice. But, you need to research different lenders and read their terms and conditions CAREFULLY. 

Once you have made your choice you will have to make a deposit for the desired credit limit amount. For example, a deposit of $300 will generally result in a credit limit of $300. Two things to scrutinize when choosing a secured credit card are the interest rate and the fees associated with obtaining the card and with maintaining the card. If an up-front application fee is charged in addition to the initial deposit, it is usually the first sign that the card is likely to be unnecessarily expensive. Annual fees can range from $25 to $75 on a $300 limit as well. With so many cards available in the $25 to $40 a year range with no application fees, you can waste a lot of money if you are not careful.

Keep in mind that a secured credit card is not the same thing as a prepaid card. With a prepaid card, you are spending the actual money you deposit. With a secured credit card, the deposit remains in an account, and the money is not touched until you either close the credit card with a zero balance or you show responsible use of the credit card, usually for one year, and request a refund and convert the card into a regular unsecured credit card.

Here are two examples of currently available secured card offerings:

1.      Zero Application Fee. 7.99% variable interest. Minimum Deposit $200 (Credit Limit is equal to deposit amount). $35 Annual fee which is waived for the first year.

2.      $95 Application Fee. 22.99% APR. Minimum Deposit $500 (Credit Limit is HALF of deposit amount). $125 Annual fee.

As you can see, not all secured credit cards are created equally… Since offers constantly change, the core message here is that you need to read the details for yourself. Don’t just shop online. Call your local banks and credit unions. Look for a secured card with little or no fees and a decent APR and as long as you show activity and pay on time your card will eventually become an unsecured card. Then you should be able to get your deposit back and begin receiving credit limit increases.  If used correctly a secured credit card can be an inexpensive tool to help you build a great credit score, which can lead to better jobs, lower insurance rates and even your dream of home ownership. 

About CCMS:  Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.

If you are an employer then you have probably noticed which types of issues are causing your employees stress, illness and work related distractions. The recently released (Dec 2011) MetLife Study of Financial Wellness Across the Globe: A look at how multinational companies are helping employees better manage their personal finances shows that many companies are seeing the impacts on both their employees and their companies resulting from financial stress AND what actions they are taking to improve the financial wellness of their employees. (You can download the study from MetLife here.)

The study shows that too many people worldwide (not just here in America), are not adequately trained to make the kinds of decisions they should to stay out of financial difficulty and prepare for retirement.

This study re-enforces past research showing employees are “increasingly addressing financial concerns while at work” and that more employees are “experiencing stress from their poor financial behaviors to the extent that it reduces their job productivity.”

So, financial education? Yes indeed, we need it!

Fortunately, businesses are beginning to understand that employee’s health wellness and employee financial wellness are not separate issues and both impact the company bottom line.

Many organizations like Consumer Credit Management Services offer a variety of financial services such as counseling and financial educational programs. If your company does not yet provide opportunities for your employees to receive financial counseling and education, perhaps it’s time for you to consider it.

Of course we hope you will contact us, but information on other credit counseling agencies across the country can be found at the National Foundation for Credit Counseling: http://www.nfcc.org

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services, Reverse Mortgage Counseling and more – 800.590.DEBT (3328).

When you as a homeowner are in the foreclosure process and participating in the mediation program, you are required to complete “pre-mediation” counseling. This involves gathering of financial information and reviewing it with a counselor (usually over the telephone). This counseling isn’t just a requirement; it will give you an idea of what will likely happen when you attend your mediation. The point of mediation is to provide the opportunity for you as the homeowner to make the best decision about your property. During that time, the mediator usually goes back and forth between you and the lender with offers to and from both parties.

Mediation is not the same as arbitration.  Arbitration is generally defined as a process whereby a neutral “third party” listens to a dispute and makes a final decision for the parties involved.  Mediation also involves a trained “third party” but here is the difference… the mediator works with both sides of a dispute (homeowner and lender) to help resolve the issue… in other words, where both parties agree to a solution. 

Their main purpose is to keep you, the homeowner and your lender communicating.  The mediator is looking to find common ground and possible solutions that both you and the lender can agree to – i.e., loan modification, forbearance, short sale, cash for keys and so on. Although you might want the mediator to push a little harder on the lender to understand your position, you must keep in mind that the mediator has limited abilities.  

Remember… the mediator is not there to “rule” on your case.  The mediator is there to help both parties find a mutually agreeable path so everyone can move forward.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling – 800.590.DEBT (3328).

As described in a recent Yahoo! Finance article by Brian O’Connell , there are several very obvious signs: 

1. You find yourself regularly overdrawing your checking account,

2. You have started to make only the minimum required monthly credit card payments,

3. Your emergency fund no longer exists and you cannot remember the emergency you used it for,

4. Which monthly bills you pay has become a coin toss, and

5. Your credit score has dipped so low that you are afraid to even check it anymore.

For further information as provided on Yahoo! Finance, click on this link:

http://finance.yahoo.com/news/5-red-flags-that-show-you%E2%80%99re-in-financial-trouble.html

 Of course, if you were able to identify with any or all of the above, it may well be time to seek the advice of a financial counselor.  There are several avenues open to assist you with money issues.  Should you have questions we here at CCMS always welcome calls or emails. 

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling – 800.590.DEBT (3328).

Reverse Mortgages are not for everyone but if you’re 62 years or older there is much you should consider.  Seniors have more options for reverse mortgages than ever before with the addition of the HECM Saver program.

Even though there are similarities between the HECM Standard and the HECM Saver as far as Fixed rate and Adjustable rate options, there are differences.  For those seniors who are considering moving or selling their home over the next few years the HECM Saver could be a viable alternative.  The significant difference is the HECM Saver program has a reduced upfront FHA mortgage insurance premium.  This difference can be substantial.  The HECM Standard has an upfront cost of two percent of value of the home up to 625,500 or the appraised value whichever is less.  Even though this is financed in the loan it still uses your equity to pay for it.  If the senior does sell the home it is not refundable.  The HECM Saver on the other hand only requires 1/10^th of a percent to be financed in the loan leaving you more equity upon the sale.  The HECM Saver does traditional have a higher interest rate than the HECM Standard which equates to a lower amount available.

So, be sure to weigh out all of your options when applying for a reverse mortgage and take your time making sure you get the most benefit from your loan.  Learn more about Reverse Mortgages at: http://debt-mgt.org/Newsletters/August-2011.html and on our Website at:  http://debt-mgt.org/housing-counseling/reverse-mortgage-counseling/.

About CCMS: Established more than 20 years ago, Consumer Credit Management Services, Inc. (CCMS) is a HUD approved 501(c)(3) national nonprofit, full service credit and housing counseling organization based in Delray Beach, Florida. We provide Financial Literacy Seminars and Workshops, First Time Homebuyer Counseling, Debt Management Programs, Foreclosure Prevention Services and Reverse Mortgage Counseling.