Why do this in June, you ask?

Silly human… you need to do this now so you know how much more in debt (and to be prepared) for the Christmas season shopping blitz.

The major credit reporting agencies are more than happy to (because it’s the law) send you a free annual credit report and we’ve chosen June as the month to get it done because… what else are you going to do?

You’ve just paid off the last Christmas season shopping blitz, we hope… and now you’re planning your “Stay-cation” because, again, you’ve just paid off the last Christmas season shopping blitz… and your holidays aren’t for another 6 weeks, or so… which doesn’t matter much because you’re broke anyways…. *sob*…

You can easily save the money you don’t have, so that’s when it’s a good time to do the credit check on yourself and find out how all the big money guys view little you.

Here are some links to get the job started, and done, quickly:
- AnnualCreditReport.com (Equifax and Transunion provide your free annual credit report through this website)
- Request your Credit Report by Phone, just call 1-877-322-8228 to request your credit report by phone
- Request your free annual credit report by snail mail, but first download the application from AnnualCreditRepoort.com and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Get cracking!!

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But that is totally WRONG and sets a bad example for their children too.

Before you get your tidy-whities in a knot, listen me out:
If you spend money on pay day that you won’t have again for two weeks, or a month, what does that teach your kids about money?
It says “spend it while you got it”.

And that’s very bad.

So what I suggest is that you turn this “pay day treat” into a positive experience.

Take that $20 or $40.00 and put it some where to SAVE it for another week.
Then show your kids what it means to HOLD ONTO your money for seven days, then take them out with that saved money.

Simple, and effective. SAVE your money.

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One of the most straightforward and simplest to understand debt consolidation programs is one that works with each of your creditors directly, representing you, and through their experience and expertise negotiating a lower interest rate and lower payment, sometimes even convincing your lenders to lower the actual total amount you owe. One of the biggest advantages of this sort of program is that you will maintain your existing accounts with your existing creditors and you will not be required to take out a new loan in order to lower your payments. The benefit to the borrower is that when your debts are paid in full, in many cases you will remain in good standing with your lenders.

There are many debt consolidation program agencies in the marketplace, and unless you are in extreme financial distress, you shouldn’t have any difficulty locating an agency that can help you get yourself back on the right financial path. You will find that there are both non-profit and for-profit agencies that are available to assist you in reducing your debt load. While some borrowers will feel more comfortable with a non-profit agency, there are many excellent and very reliable and trustworthy for-profit agencies that can provide you a solid debt consolidation program.

Most programs work like this: once the agency has negotiated a reduced interest rate and possibly a lower total balance, new lower payments will be worked out with each creditor. These payments are combined into a single figure and a payment date will be set. Each month you will pay the total amount to your debt consolidation program company, and the company will then distribute the payments to the creditors on your behalf. Whether you choose a non-profit or a for-profit company, you should understand that each will charge a fee for their services. In some cases the consumer pays the fee, in other cases the agency or company collects their fees from the creditors.

If you’re in financial difficulty and are looking for help, a debt consolidation program may be your best bet. By working with your creditors directly, an agency that specializes in helping people lower their monthly payments should be able to help you to get your debts under control.

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* Just Freeze It! Buy staples such as ground beef, chicken breast or cheese in bulk and freeze what you can’t use immediately. This will allow you to take advantage of a price break on family-sized portions.

* Make More. When cooking stews, soups or casseroles, make more than your family will eat in one sitting. Store the remainder away for another meal or to send to work or school as brownbag lunches.

* Plan Ahead. Groceries get expensive when you run to the store everyday to buy what you need for that evening. Instead, plan out the meals for the week and do all your shopping at once. While your grocery bill may be higher up front, you’ll avoid running to the store for last minute ’crisis cooking’ items, which really add up.

* Look Up, Down and All Around. At the grocery store, its no coincidence that the foods with the highest markups are located on the shelves at around chest level. Look higher up, down below or on end-caps to find generic brands or better deals.

* Shop Fresh. Local farmers markets can offer much fresher produce and canned goods than the grocery store and usually at much lower prices, since you’re not paying for shipping, advertising and retail costs.

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An FDIC study of bank overdraft programs followed the trends associated with the use of overdraft and non-sufficient fund (NSF) fees in 39 accredited banks in the U.S. The numbers are astounding. According to the study, nearly 22.5 million overdraft transactions were recorded in the past year. The average fee associated with each incident was $27 per infraction.

While one overdraft incident won’t necessarily put a consumer in the poor house, multiple infractions can add up quickly. Nearly 12% of consumer accounts recorded one to four overdraft fees in the past year, costing the account owners an average of $64. Even more astounding are the 5% of consumers that recorded more than 20 fees, resulting in over $1,600 in fees annually.

These reoccurring fees cause consumers to fall into an overdraft cycle, whereby the more penalties that the customer incurs, the less likely he or she is to have sufficient funds available in their account, which results in even more and higher penalties.

The report found that young adults (ages 18 to 25) were the most likely to accrue overdraft penalties, nearly 50% of which recorded at least one overdraft transaction in the past year. Nearly 15% of these consumers accrued more than 10 penalties in the same time frame.

Customers in low-income areas were also more likely to accrue overdraft penalties and more of them. 38% of low-income accounts (those customers making less than $30,000 annually) incurred at least one overdraft transaction in the past year, compared to only 22% of upper-income accounts. These customers also receive more violations, with 7.5% recording 20 or more NSF fees, compared to only 3.8% of upper-income clients.

All these numbers add up to some alarming trends. Bretton Woods, Inc., a bank strategy firm, used these numbers to draw some generalities about overdraft fees and the effect they had on consumers. According to their report, the average American household accrues more than 12 overdraft transactions annually, resulting in $368 in fees on average.

The result of these fees is a $37 billion annual industry for U.S. banks and credit unions. An amount, says the firm, which is causing these institutions to become ever reliant on overdraft fees as sources of revenue. “We see no reason for this trend to change,” said report author G. Michael Flores. “Bounced check fees and overdraft protection will have a larger and larger financial impact on households.”

And, ultimately, it is the young, low-income and underbanked that are the ones that will reap these consequences.

To read the FDIC report in full, click here, or for the Bretton Woods report, please click here.

Click here for a short comparison between banking fees and other short-term loan options, such as online cash advance services, presented by the CFSA.

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