Last week the U.S. Senate voted to eliminate private lenders from its subsidized student-loan programs.  With the new law, students would borrow straight from the governement at the same interest rates (6 - 8.5%), but costs the US Treasury less money since the government can borrow money more cheaply than private the private sector can.

You many be wondering how this new bill affects your student loan balance.  According to the White House, "New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years."

Additional details can be found at http://thechoice.blogs.nytimes.com/2010/03/22/loan-q-a/

One of the most important aspects in selecting a debt solution company, to negotiate debt reductions on your behalf, is choosing a company with high marks in customer service.  We feel it important to not only answer your call in a timely fashion, but also to provide quality customer service, which answers your questions, resolves financial challenges, and puts you in a position to suceed in your ability to become debt free.

A company can be measured and graded in many ways.  For example, our in-house systems have processed over 1.5 Billion dollars in creditor payments and have serviced more than 225,000 clients over the past decade.  Although systems and processes are nice, it really is our professional customer service representatives who are the face of the company, and are well trained to take care of whatever financial challenges you face.

If you are thinking about entering a Consumer Credit Counseling (CCC) Debt Management Program (DMP) or are considering alternative debt solutions, consider choosing a company whose foudners have been in the industry since 1997, and who pride themselves on providing exceptional customer service.

Call today to speak with a financial counselor.  Together we will make a plan to help you become debt free for life.

Now that the holidays have passed, many people are starting to get credit card statements in the mail showing higher balances than ever before. It can be frustrating to see monthly balances remain high despite paying each month on the balance owed.  Many people don't realize that if you make just the minimum payment, you will be paying on that debt for over 20 years!  AmeriFree offers pre-negotiated concessions available from most creditors through our exclusive programs, and can pass them on to you through several of our debt reduction plans.  We hope you include in your New Year Resolutions a goal to reduce your debt this year.  Our financial credit counselors and debt settlement professionals are ready to customize a simple plan that can help you be debt free sooner than you may think is possible.

May 2010 be the year you decide to become Debt Free!

- The AmeriFree Team

Today I'm going to focus on what you, the consumer, should be looking for when picking a Credit Counseling company to assist you with your debt(s).  Because I work for AmeriFree Financial I thought I would do my best to eliminate any bias so I went to the Federal Trade Commission (FTC) website to see what I could find. 

There was some excellent information available for consumers, much of which I’m going to share with you today.  Of course the main focus of the FTC, relating to consumer debt, is to help us avoid bankruptcy and to prevent defrauding of consumers.  The information below was taken directly off of the FTC website.  I hope you find this interesting!

Before You File for Personal Bankruptcy:
Information About Credit Counseling and Debtor Education

Produced in cooperation with the Department of Justice’s U.S. Trustee Program

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 launched a new era: With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.

Important Questions to Ask When Choosing a Credit Counselor

It’s wise to do some research when choosing a credit counseling organization. Some key questions to ask are:

• What services do they offer?
• Will they help me develop a plan for avoiding problems in the future?
• What are the fees?
• What qualifications do their counselors have? Are they accredited or certified by an outside organization? What training do they receive?
• What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?
• How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?
• How long have they been in business?
• Are they licensed in your state?
• How many consumers have they helped?

For More Information and Assistance

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

Conclusion

Thanks again for looking.  Should you have questions or would like to talk to one of the AmeriFree certified counselors in greater detail please call 1-800-360-9566 and they would be happy to assist.

Continue to check back often as information is continually being added!

Matthew

Debt Blogger

Sweeping new laws to govern the credit card industry, making cards easier to understand for consumers!

Its official President Obama has signed a federal law to protect millions of consumers from credit card company abuse; we are in a new era for managing credit.  This new law contains the most far-reaching changes we have seen in the credit card industry in decades. 

But what does it actually mean for you, the card holders?

There will be a new “normal” with credit cards becoming more transparent, easier to understand, slightly more expensive for most and less accessible for low-income families.  Experts also believe we could see a return of routine annual fees, less rewards cards and many bills being due immediately without the traditional month long grace period. 

For millions of credit card users it means avoiding retroactive interest rate increases on existing card balances, more advanced notice of account changes and fewer penalties, late fees and high interest payments. 

The method of advertising/enticing new users has been tightened up as well…good for all new credit card seekers!

Here are some highlights:

1.   There will be limits to the amount of interest rate hikes on all credit cards, such as when a promotional rate ends, a card has a variable rate or if someone pays an account late.  Interest rates on new transactions can only be increased after the first year.  Any “significant” changes to an account cannot occur without a 45 day advance notice to the consumer.

Universal default, the practice of raising interest rates on customers based on their payment records with other unrelated credit issuers (utility companies and other creditors) will no longer be allowed.

2.   Consumers will have more time to pay their credit card bills.  Card issuers are required to give account holders a “reasonable” amount of time to make payments on their accounts.  What that means for you is a minimum of 21 days to make a payment.  Card issuers can no longer set early morning or other arbitrary deadlines for payments.  Any deadline set before 5pm on the payment due date will be illegal under the new law.   Payments due at those times, on weekends, holidays or when the card issuer is closed for business will no longer be subject to late fees.

3.   Your highest paid balances will always be paid first when you make a payment greater than your minimum required payment.  Current industry practice has always been to apply all amounts over the minimum payment to the lowest interest balances first, thus extending the time it will take you to pay your account off.

4.   No more automatic over-the-limit fees on accounts.  All consumers must “opt in” to the card issuers’ over-the-limit services.  Those who opt out will have their transactions rejected if they attempt to exceed their credit limits.  Also the law mandates that any fees charged for going over the limit must be reasonable.

5.   Now for the one that we found most interesting.  Card issuers must now disclose to consumers the consequences of making only the minimum payment required on their monthly statements, namely how long it will take them to pay off their entire balance if they make only the minimum payment each month…years to payoff is a real “shocker” to most consumers.  Issuers must also provide information to the consumer outlining how much the consumer must pay in order to pay off their balances within 12, 24 or 36 months, including all interest and annual fees on their account.

For more information, or if you find yourself drowning in debt, please contact AmeriFree to discuss how our Debt Management Plans (Credit Counseling & Debt Settlement) may be able to help reduce your payment and eliminate stress from your life!

Please check back often as information is continually being added...

Matthew

Debt Blogger

Rather than babble about something that I'm not as up to speed on as other topics I thought today I would share a link to an expert on the subject of "Mortgage and Government".  I hope this is useful information to some and educational for others...

If you’re like most of us your mortgage is worth less than you owe and you are having trouble keeping up with the payments. 

After reading please feel free to express your opinion on this subject.  We understand that this is a hot topic in the news right now so please share...

Please click on the link below and it will take you directly to the article.

http://www.msnbc.msn.com/id/32479139/ns/business-reinventing_america

If you would like additional information, or would like to discuss your financial situation in greater detail, please contact one of our AmeriFree experts and they will be happy to assist you!

Matthew

Debt Blogger

If you have more debt than you can handle, and are unable to get out of debt on your own due to high interest rates while barely making the minimum payments, it is time to consider alternatives such as credit counseling or debt settlement services.  Picking the right company is critical to getting out of debt.  The more you know about your options, the more prepared you will be to face the challenges with a true debt solution. 

Make sure you choose a company that has a great track record.  There are many fly-by-night debt companies out there that make over-the-top claims about how they can get rid of your debt and bring up your credit score, while siphoning off large up-front settlement fees before they have actually saved you any money.  You know the routine if it sounds too good to be true.

In choosing the right company to help you get out of debt, it is paramount that you have a great working relationship with them.  In consultation with them, you will disclose your inner-most financial challenges, and will want a company that has a strong track record in successfully helping people get out of debt.

In your initial consultation, know your options and get it in writing.  Most companies offering debt solutions offer either credit counseling or debt settlement.  What are the differences?  What makes one program better than the other?  Who do you know which one works for your situation?  If you are speaking to a financial counselor at one of these companies, they will most likely tell you that their credit counseling program is better than the other guys’ debt settlement program, and vice versa.  What is a person to do?

When you call and speak to one of our debt counselors, we provide an unbiased assessment of both our credit counseling and debt settlement programs, review your financial hardships and goals, and develop a plan to get out of debt within a specified timeline.  With multiple debt solutions to choose from, you decide what option best fits your needs.  Unlike most debt solution companies, AmeriFree Financial offers both credit counseling and debt settlement services.  We have designed debt management programs that have helped countless people become debt free, and have counseled over 750,000 people.  The call is free and takes but a few minutes of your time.  We look forward to hearing from you soon.

I’m going to start off with an interesting statement.

Many of the personal finance problems people face today are due to confusion between things they want and things they actually need.

It’s true, distinguishing between a want and need can be very difficult, especially when we are being persuaded by outside influences, i.e. salespeople, friends, co-workers. 

There have been times in my life where this particular subject was very, very blurry.  Like the time I needed a $15k car but bought a $30k one instead or the 36” new TV that would have been just fine but the 60” one was more impressive.  I’d use that “blurry area” to justify some of my purchases. These things were “needed” in some way, so I would just define them as needs and not think about them critically.

But what happens when I step back from that for a moment and think about these things with a seriously critical eye?

Life, things I actually need…

Roof over head.  Does that mean I need a house as nice as the one we live in? Not really - we could make do with something much smaller and more affordable. Thus, quite honestly, probably half of our mortgage payment is a “need” and half of it is a “want.”

Food and water.  The majority of my food bill is a “need” - most of my purchases are simply covering staples and buying the basics of food for my family.

Clothing.  I’m extremely tight with my clothing. I often find myself shopping at discount stores to save a buck or two.  Even then, when I do buy clothes, I’ll still spend a little above the need.

Money.  Money is a necessary evil, without it we can’t sustain ourselves.  The question with money is how much do we need?  It’s fine to want more money but be careful not to put money ahead of things like family, friends, etc. 

Protection against demise.  For me life insurance and disability insurance are needs.  Be sure to have enough coverage here to allow for your family to get back on track should something catastrophic occur.

WANTS, everything else…

Part of my mortgage is a “want” because I want a big house. Some of my food bill is a “want” because I like to eat out. Cable (all the extras)?  Want.  Nice car?  Want.  Fancy cell phone?  Want. Wii, quads, boats (fun toys)?  Definitely wants. Traveling?  Want.  Other entertainment expenses?  Want. 

When you start looking at the small number of things in your life that are actually needs, you really begin to see how many things you buy simply because you want them, and then you start to realize just how much fat you can really cut.

What fun is life without wants?  It’s not…

The point isn’t to abandon all of the stuff you want, but to realize just how much of your monthly spending is tied to wants. It’s fine and healthy to want things, but if you’re sinking financially trying to maintain all of the things that you want, then there’s a real problem.

Recommended experiment.  Divide your spending into needs and wants.  Now for the challenge; before adding things up, make a deal with yourself that for every dollar you spend on a want you will put a dollar into savings for the future. Then add away...

If you are like me you just realized that the majority of your spending is on things that should be considered “wants”.  With the state of our economy I found myself needing to look at my wants with a more critical eye, eliminating some and putting others on hold for now.  Doing this has made big changes in my spending patterns each month, and has put some cash right back in my own pocket.

I hope this information was interesting and sparked some curiosity.  Having wants is a great thing and pushes us to reach further, work a little harder and simply dream but staying grounded also helps put everything into perspective…a need is a need and a want is just a want, nothing more!

If you have questions or would like additional information feel free to contact AmeriFree directly.  Our experts are available M-F 8am to 5pm MST to answer any questions regarding debt, budgeting, finances.

Matthew

Debt Blogger 

When someone is in debt, and wants access to special programs designed to help them become debt free, they have many options to choose from.  Although there are many services out there to help that person become debt free, there are also numerous companies out there looking for a quick buck, regardless of what the does to the consumer. 

There are numerous options out there to help people become debt free.  Services such as credit counseling, debt settlement, debt negotiation and credit repair all fall into this category.  Established, regulated industries such as those in the credit counseling arena follow strict state-mandated guidelines, and are subject to numerous controls and audits.  Other services, including debt settlement and debt negotiation, are newer, and are subject to less government oversight as the industry is so new.  Most often the bad apples can be found in these latter industries.

In deciding between debt management companies, make sure you know what kind of questions to ask.  One of the better ways to discover which company is a good candidate to meet your financial goals to get out of debt is to call them, and speak to someone at the company. For example, if a debt settlement company collects the majority of their fees in the first 12 months of a program, do you think they really have a financial incentive to be there for you in the later months of the program?  Did they just pop up over night?  Do they give you multiple options to choose from when it comes to the debt management program, or do they only offer a single program (one size fits all)?  Do they have a track record of providing good service while helping thousands and thousands of people get out of debt?  If the company has been in business for a long time, and has clients that remain with the program, you can know they are a good company to work with.

Since 1994, the management team at AmeriFree Financial has designed consumer friendly programs which have helped close to three quarters of a million people with their debt.  We offer both credit counseling and debt settlement services, allowing consumers to choose the debt management program that would best fit their needs.  We offer top quality credit counseling services, and our debt settlement program was designed to model the credit counseling industry in that we do not collect front loaded settlement fees.  Speak with a counselor at AmeriFree Financial today.  The call is free, and within 10 minutes you can have a financial plan to get out of debt quickly, and be debt free.

I understand that creating a monthly budget may not be easy but it is vital in keeping your finances in check.  However, unless you are willing to be as detailed as possible, creating a budget may not be as helpful in accounting for all of your monthly expenses.  If done properly the end result should be able to show where your money comes from, how much money there is and where it is all going…

Steps to Creating Your Budget:

1.   Gather all of your statements. Be sure to include bank statements, investment accounts, recent utility bills and any other source of income or expense.  The more information you can dig up the better.

2.   Record all sources of income. For those who are self-employed or have other sources of income be sure to record these as well.  Be sure to use your “net” income for creating your budget.

3.   Create a list of your expenses. List out all of the expected expenses for a given month. This includes mortgage/rent payments, car payments, auto insurance, groceries, utilities, entertainment, dry cleaning, auto insurance, retirement and college savings.  Basically include everything you spend money on.

(for more detailed budget add this step)

Break expenses into two categories: fixed and variable. Fixed expenses are those that stay relatively the same each month and are required parts of your way of living. They included expenses such as your mortgage or rent, car payments, cable and/or internet service, trash pickup, credit card payments and so on. These expenses for the most part are essential yet not likely to change in the budget.  Variable expenses are the type that will change from month to month and include items such as groceries, gasoline, entertainment, eating out and gifts to name a few. This category will be important when making adjustments.

4.   Total everything up. If your end result shows more income than expenses you are off to a good start.  If you are showing a higher expense column than income it means some changes will have to be made.

5.   Make adjustments where needed. If you have accurately identified and listed all of your expenses the goal would be to have your income and expense columns match up! 

For those who find themselves in the situation where expenses are higher than income, be sure to look at your variable expenses to identify areas where you may be able to reduce a specific expense.

6.   Constant review of your monthly budget. Now that you have a budget the most important part is to use it.  Most of us think we know where we are spending our money but trust me when I say that just is not the case.  For example, who actually accounts for that extra soda in a day, extra trip to the mall or just something that comes up?  The short answer is none of us…

Very few of us are experts in accounting for our daily, weekly or monthly spending.  Therefore, my goal in putting these somewhat simple steps together was that we, at a minimum, put one more second of thought when it comes to spending the last couple of bucks in the bottom of our wallets.  Feel free to contact AmeriFree if you want assistance with putting together your monthly budget.

I hope you found this information useful in planning your monthly budget.  Please check back often as new information is added daily.

Matthew

Debt Blogger