Beyond Dollars & Sense is a forum dedicated to informing American consumers about the best ways to save money, and find the best values in an ever-challenging economy. It is also a source for up-to-the hour financial and business-related news.
Wednesday, December 26, 2012
Where To Find Post-Christmas Bargains...
It's the day after Christmas 2012, and if you're like me, you are looking for the post-Christmas Day bargains that you weren't able to find prior to the biggest spending occasion of the year. And being early morning as I write and post this piece, you are probably chomping at the bit to dash out the door to hit the ground running to look for bargains. According to retail industry experts, many retailers have already begun slashing the prices of in-stock merchandise in preparation to make room to seasonal inventory. That's a boon for customers looking for deep-cut bargains.
Taking some time to search the 'net will pay for itself insomuch as bargains. Sites like Afterchristmas2012.com are a good start.
In addition, I have taken the liberty to post whom has, and where to find the best after-Christmas Day bargains.
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Target is also offering great deals on Christmas day online along with their after Christmas sale. Target is giving away a $10 gift card when your purchase is $75 or more. This store has deals in all their departments with an emphasis on electronics with great deals on all the gadgets you might have wanted for Christmas, but didn’t get.
Target: Promo code for your $10 gift card is XMASGIFT (this is good for online only).
Best Buy is also making preparations to get in on the post-Christmas sales rush. The troubled electronics retailer is featuring several big deals, including a bargain on the Galaxy Note II, which is dropped in price to $249.99 when you sign-up for a two-year activation. Best Buy is rolling out all types of sales and deals for the day after Christmas both in the store and online. This sale starts on Dec. 26, and continues for four days. In addition to the bargains being offered by the major retailers, bargain-hunters can get even more possible savings by searching out coupons and/or promotional codes.
Kohl’s department store is offering Gold star clearance items at between 60-80% off.
Amazon.com is boasting 60% off select books (my personal favorite past time) titles.
Gordon’s Jewelers is hosting up to 70% off on clearance items – plus an extra 20 percent off if you buy online More than 1,000 pieces have been discounted for this sale, including engagement rings.
In addition, sites like Coupons.com tend to have a line on coupons which can be printed out and used in many online and brick-and-mortar retailers.
Naturally this isn't an exhaustive list of after-Christmas deals. However, it does illustrate the point that taking a few moments to research where the best deals are can save both money and the wear-and-tear on the seat of your pants as you kick yourselves for spending more than you should.
Sunday, December 2, 2012
Public Service Announcement - Beware of Red Light Traffic Cameras!
This is one of those experiences that I have had the displeasure of having to learn about, pretty much the hard way. It’s not so much an instruction in how to save money as it is a PSA in how to avoid having it siphoned out of your pockets.
Years ago, when I was helping my sister move to the South, I was trailing to her new digs in a rented moving truck. At one particular intersection, my sister had rolled through a light cycle in the process of going from green to red. She blow through the yellow light as it was preparing to change to red, followed closely by me. However, I failed to make the light, and came pretty close to running it. I actually had to back up to the light, after having made it a few feet into the intersection.
One day a couple of week later, after I had made it back home back up North, I went to my mailbox and opened up an official-looking letter from the government of a local municipality in Georgia; it was a computer-generated a traffic ticket time stamped with a date, time, and a picture of the license plate of the rental truck I had helped move my sister in. Needless to say, I was both surprised and livid. I remember thinking, If I had known that I would get a ticket for running a red light that I hadn’t actually ran, I would have just ran it and paid for my ignorance of traffic-enforcement practices in other regions of the country. Actually, “traffic enforcement” is more of an acknowledgment of red light traffic cameras being ostensibly used to “ensure safety at certain dangerous intersections;” in most cases, these devices are about revenue enhancement for local municipalities. And for those in denial of this, consider the findings of the National Motorist Association (NMA). According to the nonprofit motorist interest group, “cities are trimming the timing on yellow lights so they skip right to red” on red light cameras “to increase their camera revenues" (Shorter Yellow Lights Mean More Red-Light Revenue).
In fact, local municipalities have become so focused on the using these devices to obtain money from motorists that they have started using more creative schemes to leverage the effectiveness of the cameras. In Oakland, California, the noticeable 56% decrease in traffic violations (and resulting ticket revenues) after the yellow light on the city’s traffic cameras had been extended by a full second made “police department officials…irate.” After pressure from the city’s police department and officials from Redflex Traffic Systems—the Australian-based company which has contracts with most municipalities throughout the country using these devices—the yellow light on the traffic camera lights were subsequently to increase revenues back to previous levels.
Using Oakland as an example of how this system works, “the city's cut of each $480 ticket is about $160 after the state and county governments take their share.” Redflex, seeking to maximize profits from its exclusive contracts with the cities using these devices, exerts occasional pressure on local municipalities seeking to regulate the devices in ways which might limit revenues as they had done so in Oakland (“Oakland, California Raises, Then Shortens Yellow Time for Revenue”).
According to the NMA, "Chicago’s yellow lights last three seconds -- even where traffic is going more than 40 miles an hour. Bowman says the city earns more than $70 million a year from red light cameras.
And even without the creative measures to increase the chances that motorists might have to shelve out money because of these devices, in many cases motorists are erroneously cited for engaging in innocent driving practices.
In Cary, North Carolina, police were forced to "review 17 red light cameras across town after citizens complained that they were being wrongfully fined" ("Cary Investigating Red Light Cameras After Drivers Wrongfully Fined")
And with revenues being so creatively maximized by the use of these devices, don't look forward to their going away anytime soon.
The best advice I can give those who might find themselves at risk of having to shelve our their hard-earned money encountering these devices is to be aware of cities and towns where they are in use.
If at all possible, try to avoid intersections where it's know these devices are known to be installed.
In most intersections where red-light cameras are in use, these areas as usually clearly marked as camera-enforcement zones...be aware and slow down as a way of preparing for short yellow lights.
Saving money means more than knowing when and how to look for a bargain...it also means being aware schemes in place to meant to separate you from your money!
Years ago, when I was helping my sister move to the South, I was trailing to her new digs in a rented moving truck. At one particular intersection, my sister had rolled through a light cycle in the process of going from green to red. She blow through the yellow light as it was preparing to change to red, followed closely by me. However, I failed to make the light, and came pretty close to running it. I actually had to back up to the light, after having made it a few feet into the intersection.
One day a couple of week later, after I had made it back home back up North, I went to my mailbox and opened up an official-looking letter from the government of a local municipality in Georgia; it was a computer-generated a traffic ticket time stamped with a date, time, and a picture of the license plate of the rental truck I had helped move my sister in. Needless to say, I was both surprised and livid. I remember thinking, If I had known that I would get a ticket for running a red light that I hadn’t actually ran, I would have just ran it and paid for my ignorance of traffic-enforcement practices in other regions of the country. Actually, “traffic enforcement” is more of an acknowledgment of red light traffic cameras being ostensibly used to “ensure safety at certain dangerous intersections;” in most cases, these devices are about revenue enhancement for local municipalities. And for those in denial of this, consider the findings of the National Motorist Association (NMA). According to the nonprofit motorist interest group, “cities are trimming the timing on yellow lights so they skip right to red” on red light cameras “to increase their camera revenues" (Shorter Yellow Lights Mean More Red-Light Revenue).
In fact, local municipalities have become so focused on the using these devices to obtain money from motorists that they have started using more creative schemes to leverage the effectiveness of the cameras. In Oakland, California, the noticeable 56% decrease in traffic violations (and resulting ticket revenues) after the yellow light on the city’s traffic cameras had been extended by a full second made “police department officials…irate.” After pressure from the city’s police department and officials from Redflex Traffic Systems—the Australian-based company which has contracts with most municipalities throughout the country using these devices—the yellow light on the traffic camera lights were subsequently to increase revenues back to previous levels.
Using Oakland as an example of how this system works, “the city's cut of each $480 ticket is about $160 after the state and county governments take their share.” Redflex, seeking to maximize profits from its exclusive contracts with the cities using these devices, exerts occasional pressure on local municipalities seeking to regulate the devices in ways which might limit revenues as they had done so in Oakland (“Oakland, California Raises, Then Shortens Yellow Time for Revenue”).
According to the NMA, "Chicago’s yellow lights last three seconds -- even where traffic is going more than 40 miles an hour. Bowman says the city earns more than $70 million a year from red light cameras.
And even without the creative measures to increase the chances that motorists might have to shelve out money because of these devices, in many cases motorists are erroneously cited for engaging in innocent driving practices.
In Cary, North Carolina, police were forced to "review 17 red light cameras across town after citizens complained that they were being wrongfully fined" ("Cary Investigating Red Light Cameras After Drivers Wrongfully Fined")
And with revenues being so creatively maximized by the use of these devices, don't look forward to their going away anytime soon.
The best advice I can give those who might find themselves at risk of having to shelve our their hard-earned money encountering these devices is to be aware of cities and towns where they are in use.
If at all possible, try to avoid intersections where it's know these devices are known to be installed.
In most intersections where red-light cameras are in use, these areas as usually clearly marked as camera-enforcement zones...be aware and slow down as a way of preparing for short yellow lights.
Saving money means more than knowing when and how to look for a bargain...it also means being aware schemes in place to meant to separate you from your money!
Friday, November 16, 2012
Interview: A Military Boot Camp For Your Money
Service members are known for their discipline and their ability to stay cool under fire. Veteran and financial planner Steve Repak says those skills are crucial to managing everyday finances. Yesterday on National Public Radios's Tell Me More, he speoke with host Michel Martin about his book, "Dollars and Uncommon Sense: Basic Training for Your Money."
Listen to the short program below (even I learned a thing or two).
Wednesday, November 14, 2012
Making Food Last Longer!
As a Generation Xer, my thoughts and outlooks on the way of doing most things would pretty much categorize me as Old School. That being the case, I can remember growing up in the 70’s and watching my mother actually can fruits, going through the process of boiling, making wax, and sealing the food up for later usage. Rarely today do I see or even hear of people going through such lengths to get the most out of the food we buy…not unless they belong to some fringe militia group or survivalist preparing for next month’s Mayan Apocalypse.
At any rate, I got the idea to post a little primer on storing perishable foods for the long-term while watching NBC’s The Today Show last Saturday morning (I’m not afraid to admit that even I learned something watching). I invite you to view the video of that topic below:
At any rate, I got the idea to post a little primer on storing perishable foods for the long-term while watching NBC’s The Today Show last Saturday morning (I’m not afraid to admit that even I learned something watching). I invite you to view the video of that topic below:
Thursday, November 8, 2012
When A "Free" Credit Report Isn't Free!
A few years back, I had attempted to obtain a copy of my credit report. This was shortly after the Fair and Accurate Credit Transactions Act of 2003 had been signed into law. If you’re not familiar with this law, it requires the three major credit reporting agencies—Experian, Equifax, and Trans-Union—to provide you with 1 free copy of your credit report a year upon request.
But when I had tried to obtain a copy of my credit reports online during the early years of this then new law, I had found it was a case of if being easier-said-than-done. One of these agencies wanted me to provide them with a list of the creditors that I owed, which was a ridiculous requirement seeing as how my entire purpose for getting a copy of my report was that I was trying to find out everyone I owed money to. Another used a loophole in marketing and hard salesmanship to—although the credit report itself was “free”—force me to check a box as a requirement to obtaining a copy of my report; the checked box was a forced agreement to try a trial subscription to a credit monitoring service for a monthly fee if it’s not cancelled in short order.
The first thing I thought about in dealing with this insanity was the old French proverb, “The only free cheese is found in a mousetrap.”
Whether they intend to or not, many of us are actually paying to get a copy of our individual credit reports, which by law are supposed to be given once a year for free when you ask. According to the Federal Trade Commission's 2006 Identity Theft Survey Report, 78% of people surveyed paid to obtain a copy of their “free” credit reports. Given my own experiences, I can see how and why that's more possible than not.
So, how do you get the free kind of credit report? You can go to AnnualCreditReport.com, call 877-322-8228 or fill out the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request Service,
P.O. Box 105281,
Atlanta, GA 30348-5281.
These are the only official channels to make a request for a free annual credit report. But if you're looking to get a copy of your credit report, financial experts are warning you to avoid the numerous websites that look to offer free reports, but then invite you to buy other related services. A 2007 Consumer Reports analysis found that out of 24 such sites, 9 were owned by or closely connected to TransUnion; 8 were either owned by or connected to Experian. Among such sites—many with the word “free” in their site domain name are:
Free3bureaucreditreport.com
Freebiecreditreport.com
Free-credit-reports.com
Freecreditreportsinstantly.com
Freecreditreport.com
Thefreecreditreportsource.com.
Creditreport.com
Creditreporting.com
Nationalcreditreport.com.
The best advice is to just simply do your homework, and avoid jumping on to the first website that appears to offer you the change to obtain your entitled free credit report. Don’t be the mouse in the trap.
Monday, November 5, 2012
Look Out for (Hidden) Credit Card Surcharges
As if things weren’t bad enough with the average consumer having to diligently watch where every penny goes during these lean economic times, some retailers have began engaging in a questionable practice resulting in a slow nickel-and-diming of consumer’s bank and credit card accounts. As a result of the antitrust settlement reached earlier this year between credit card issuing banks and major retailers (discussed on an earlier posting: “The Higher Cost of Banking…and How To Avoid It”),some retailers have already started to instituting “checkout fees,” surcharges of $1 or $2 on purchases made with either debit or credit cards.
Retailers use these fees as a means of attempting to recoup processing fees levied in turn on them by the card issuing banks. Before the settlement, major card issuing banks such as Visa and Mastercard prohibited retailers from charging such fees.
The sad part of this policy is that we shouldn’t expect it to go anywhere, anytime soon. In fact, it’s probably a safe bet—barring a major consumer revolt—that more and more retailers will start charging these fees in order to offset the costs they incur processing credit and debit card payments.
Bill Hardekopf, CEO of LowCards.com offers some times for beating these surcharges at the register:
Click on the graphic to view how surcharges appear on sale receipts.
In addition, Consumer Report’s website has an online guide warning credit card hunters shopping around for the best credit card deals about what to look for in order to avoid being nickled-and-dimed by credit card issuing banks.
You should know that there are 10 states which by law prohibit retailers from charging checkout fees. They are:
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Oklahoma
Texas
If you find that you are either being charged in one of these states, or being charged excessively (relatively speaking), Visa offers an online reporting site where you can submit your complaints. Additionally, consumers who are subjected to checkout fees in states where they are protected by law may report the retailer to their state attorney general's office.
When it comes to spending money, the first rule of thumb is to remember the advice our mothers gave us; always check your receipts!
Bill Hardekopf, CEO of LowCards.com offers some times for beating these surcharges at the register:
* ASK ABOUT ANY CREDIT/DEBIT CARD SURCHARGES BEFORE THE TRANSACTION.
* RETAILERS MUST DISCLOSE ANY SURCHARGES BEFORE THE TRANSACTION.
* IF THERE IS A SURCHARGE, DECLINE IT AND REQUEST ANOTHER METHOD OF PAYMENT. If necessary, cancel the transaction and shop somewhere else.
* REVIEW YOUR RECEIPT. Even if you end up using cash, a check or your debit card, review the receipt to make sure the store didn't levy a surcharge. There should never be a surcharge on a cash purchase.
Click on the graphic to view how surcharges appear on sale receipts.
In addition, Consumer Report’s website has an online guide warning credit card hunters shopping around for the best credit card deals about what to look for in order to avoid being nickled-and-dimed by credit card issuing banks.
You should know that there are 10 states which by law prohibit retailers from charging checkout fees. They are:
California
Colorado
Connecticut
Florida
Kansas
Maine
Massachusetts
New York
Oklahoma
Texas
If you find that you are either being charged in one of these states, or being charged excessively (relatively speaking), Visa offers an online reporting site where you can submit your complaints. Additionally, consumers who are subjected to checkout fees in states where they are protected by law may report the retailer to their state attorney general's office.
When it comes to spending money, the first rule of thumb is to remember the advice our mothers gave us; always check your receipts!
Beware of Home Repair, Contractor, & Insurance Scams!
When it comes to my own thoughts about home repair and contractor scams, I think of the time when my mother’s house burned, almost to the ground back in 1987; she lost everything. When it came time for the insurance company to pay out on the policy in order to find a contractor to rebuild it—she had to secure the necessary three bid minimum from local contractors—the insurance company naturally went with the lowest bidder. What I remembered in particular about her ordeal was that when the contractor (and related sub-contractors) had finished, her house looked like a dream home you’d find in a magazine…a least on a superficial level. It was not long before she’d encountered unusual wiring problems such a certain light fixtures constantly and inexplicably blowing light new light bulbs at an unusual rate. Other problems cropped up too, such as leaking pipes (we actually found one set of pipes that hadn’t even been joined together properly), insufficient insulation (almost lunacy during a cold Michigan winter), and a roof which eventually began to leak. Although the primary contractor was licensed, I cannot say with a level of assuredness that the subcontractors used were licensed.
It took my brother and a proverbial army of self-hires to repair the shotty work.
Thinking back to last week’s storm on the East Coast, I imagine that the owners of some of the hundreds of homes damaged and/or destroyed during the so-called “superstorm” Hurricane Sandy will be in jeopardy of a similar experience. Over the weekend, NBC’s The Today Show did a piece on unlicensed contractors are coming out of the woodwork, and passing themselves off as licensed and/or bonded contractors in order to make a fast buck from the victims of Sandy. The following video highlights how unlicensed, for example how unlicensed tree trimmers are passing themselves off as licensed contractors for people desperate to have debris cleared from their properties:
With an estimated damage cost of $25 billion and dollars and rising, home-owners and insurance companies alike will be under pressure, mostly from the quickly changing seasons and the approach of inclimate weather to begin repairs so that displaced residents can have some shelter from the approaching winter. And it’s a sure bet that in addition to individuals claiming to be able to clean up properties, others claiming to be able to do actual labor and/or home repair “cheap” will also target not only Sandy survivors, but others who might find themselves in need of home repair at some point.
-Ask to see a license. If indeed you are truly dealing with a reputable company with an established presence, its representatives should have no problem showing you a copy of a license recognizing the right to perform the work they advertise. If any such outfit is only capable of producing nothing but excuses as opposed to an actual license, slam the door!
-Employ due-diligence. Be willing to research and chock out any prospective contractors as well as insurance company. In addition to asking to see their license, check out whether or not there are complaints filed against any business entity you are considering doing business with. The Better Business Bureau and Consumer-friendly sites like Angie’s List are great places to start to check the integrity of insurers and building contractors.
-Avoid paying up front. If a contractor requires money up-front (usually as a good-faith gesture of their sincerity and of your seriousness), limit any up-front payment to less than half the total cost; 1/3 of job cost is a good number.
-Avoid high pressure tactics. If someone “offers” to “do you a favor” by “starting right away,” especially if they “like you” or want to give your job priority—especially for more cash—be skeptical. A little healthy skepticism is a good thing when it comes to preventing being taken to the cleaners.
-Use your insurance company’s resources. Most have a preferred set of contractors they usually work with, or are willing to recommend for their customers. Most reputable insurers take the time to check out local contractors for mostly for this reason…to weed out the fly-by-nighters.
-Shop around. Don’t be afraid to go around to multiple contractors and insurers and obtain multiple quotes. If you must, check them against the going market rate for similar labor and contract work. Being able to compare reasonable prices for contractor labor is a good way for anyone willing to trust their instincts to weed out probably scammers themselves.
-Report any suspected scammers. Although this may be somewhat embarrassing, even the most intelligent people are capable of being taken in by astute and practiced scammers. At this point, it’s time to swallow your pride and report any attempted and/or actual scams you might have found yourself on the receiving end of. Contact your local police department, or head to one of the various consumer reporting sites such as Consumer Fraud Reporting.
As I have observed in my own life, taking the time to think with your head rather than with you wallet can pay off in terms of saving the misery, money and mortification that comes along with knowing that someone scammed you out of your hard-earned money...especially in troubling times such as these.
Sunday, October 28, 2012
Is College Worth The Cost?
During this long (but mercifully winding-down) campaign season, much has been said about the $1 trillion amount in student loan debt that American college graduates (and non-graduates) collectively owe either private lending institutions or the federal government by political candidates from both major political parties. What’s more, both the general and individual economic impact of this staggering amount was made all the more relevant during the recent economic downturn, as the educated (and uneducated) have struggled to find work in the midst of high rate of unemployment across the country.
Because of this, the question of whether or not a college degree is worth the investment in time and especially money has also become an issue in these lean economic times. For those thinking of taking the plunge into working toward a college degree (or those completing a degree), there are many factors to consider in making sure whether or not the investment in an education will pay off for you.
Is college worth the cost? Watch the recent piece on NBC's "Today Show" to view considerations to consider.
Like others, my own college experience turned out to be rather expensive, especially considering that I attended a much costlier private school in lieu of a less expensive public institution. However, I know that I would have ended up much more if I hadn’t (1) attended a community college first; (2) hadn’t maintained a respectable grade point average of 3.52; and (3) looked for and received many scholarship, most of them merit- and academic-based (some $20,000 by my recollections).
Like many others during the recent economic downturn, I found myself negatively affected. But I was one of the lucky ones; in addition to a college degree with a double-major, I managed to obtain other useful credentials which supplemented my ability to secure work, even in leaner economic times (such as my commercial driver’s license). And given my varied experiences, I managed to do OK for myself during the downturn. However, many young people in the most recent graduation years have had far less success in securing stable employment with their college educations.
For those both considering enrolling in college to facilitate a more financially-stable career change and those who are recent graduates looking for work, there are questions you should ask yourself when assessing whether your degree can/will work for you (or against you). Among the questions you should ask yourself are:
All of these questions have an impact on what you can expect to pay (or borrow) in order to finance a college education.
Another thing to consider is career path you choose, based on your college major. Simply put, some degrees are worth more than others. According to a recent survey by the online salary database Payscale.com. the worst-paying college degrees of 2012 are:
Of course, these average median salaries are only averages; they may be higher or lower depending the geographical area of the country where demand rises or falls. However, if you are determined to set your path toward a college education, there are steps and strategies you should expect to take to begin securing funding for your education, and lessen the pain in the wallet you can expect to contribute.
If you would like to focus your search for college money in the realm of scholarships, there are literally dozens of sites you can use, such as http://www.salliemae.com/scholarships or http://www.finaid.org/scholarships/ . However, you should be aware that many of these sites require you to register with a valid e-mail address (and whereby you can expect to have your inbox/spam box flooded with junk e-mail). But it should be noted that finding scholarships is not a sure thing (Read: "On Hunting for Scholarships, and Coming Up Empty"). And on this note, please make an effort to seek out specialized scholarships for certain demographic groups.
Scholarships for (single) moms seeking to attend college
Ultimately, it is up too you to determine whether or not college is for you, or worth the investment in time and money. My advice is to make sure that your career choice is something that is both personally rewarding, as well as financially sound insomuch as your ability to earn a living. In addition, consider continuing education course leading to certifications...never stop learning. Every bit of experience you can gain makes you that much more marketable and able to make your decision to attend college to pay off.
Because of this, the question of whether or not a college degree is worth the investment in time and especially money has also become an issue in these lean economic times. For those thinking of taking the plunge into working toward a college degree (or those completing a degree), there are many factors to consider in making sure whether or not the investment in an education will pay off for you.
Like others, my own college experience turned out to be rather expensive, especially considering that I attended a much costlier private school in lieu of a less expensive public institution. However, I know that I would have ended up much more if I hadn’t (1) attended a community college first; (2) hadn’t maintained a respectable grade point average of 3.52; and (3) looked for and received many scholarship, most of them merit- and academic-based (some $20,000 by my recollections).
Like many others during the recent economic downturn, I found myself negatively affected. But I was one of the lucky ones; in addition to a college degree with a double-major, I managed to obtain other useful credentials which supplemented my ability to secure work, even in leaner economic times (such as my commercial driver’s license). And given my varied experiences, I managed to do OK for myself during the downturn. However, many young people in the most recent graduation years have had far less success in securing stable employment with their college educations.
For those both considering enrolling in college to facilitate a more financially-stable career change and those who are recent graduates looking for work, there are questions you should ask yourself when assessing whether your degree can/will work for you (or against you). Among the questions you should ask yourself are:
What are my primary reasons for attending college?
What do I want to major in?
What will my degree worth in the employment market after I graduate?
Am I 100% certain about my major/career choice?
Will I be benefit from starting out in a two-year college?
Will I be comfortable at a large university?
Is a private college a good choice for me?
How much can I afford to spend or borrow on college?/What are my options for paying for college?
Do I plan to work while attending college?
What geographic area do I prefer?
Will I live on campus, with my parents, or in an off-campus apartment?
What type of work would I like to do after college?
Will graduate study after be necessary in order to be marketable?
All of these questions have an impact on what you can expect to pay (or borrow) in order to finance a college education.
Another thing to consider is career path you choose, based on your college major. Simply put, some degrees are worth more than others. According to a recent survey by the online salary database Payscale.com. the worst-paying college degrees of 2012 are:
Child and Family Studies
Median Annual Salary: $37,700
Social Work
Median Annual Salary: $45,300
Elementary Education
Median Annual Salary: $46,000
Human Development
Median Annual Salary: $47,800
Special Education
Median Annual Salary: $48,900
Culinary Arts
Median Annual Salary: $49,700
Athletic Training
Median Annual Salary: $49,800
Of course, these average median salaries are only averages; they may be higher or lower depending the geographical area of the country where demand rises or falls. However, if you are determined to set your path toward a college education, there are steps and strategies you should expect to take to begin securing funding for your education, and lessen the pain in the wallet you can expect to contribute.
1. Apply for financial aid (even if you don’t think you'll qualify, fill out the Free Application for Federal Student Aid [FAFSA] form).
2. Apply for national grants (options include Pell Grants, Academic Competitiveness Grants and National SMART Grants).
3. Apply for local scholarships (civic organizations and religious institutions often have funds set aside for merit and non-merit-based scholarships).
4. Bargain (even schools that only provide need-based aid sometimes come up with drastically different offers. If you have more than one package on the table, you may be able to negotiate a better deal at another college).
5. Find an official benefactor (AmeriCorps, Peace Corp, National Health Services Corps and ROTC programs offer college money in exchange for a service commitment).
6. Look abroad (tuition and fees at U.S. private four-year colleges and universities now averages $27,293. At Scotland’s St. Andrews, the alma mater of Britain’s Prince William and wife Kate, U.S. students pay only $21,650; Canada's McGill University charges just $17,400 for Americans studying for a B.A.).
7. Live at home (starting out at a low-cost community college and transferring to a four-year college for the final two years will wipe away a hefty chunk of room and board costs, as well as some tuition).
8. Inquire your employer about a tuition reimbursement plan which pays for some or all of your courses. Some companies will pay for their employees to attend college part-time.If you would like to focus your search for college money in the realm of scholarships, there are literally dozens of sites you can use, such as http://www.salliemae.com/scholarships or http://www.finaid.org/scholarships/ . However, you should be aware that many of these sites require you to register with a valid e-mail address (and whereby you can expect to have your inbox/spam box flooded with junk e-mail). But it should be noted that finding scholarships is not a sure thing (Read: "On Hunting for Scholarships, and Coming Up Empty"). And on this note, please make an effort to seek out specialized scholarships for certain demographic groups.
Scholarships for (single) moms seeking to attend college
Ultimately, it is up too you to determine whether or not college is for you, or worth the investment in time and money. My advice is to make sure that your career choice is something that is both personally rewarding, as well as financially sound insomuch as your ability to earn a living. In addition, consider continuing education course leading to certifications...never stop learning. Every bit of experience you can gain makes you that much more marketable and able to make your decision to attend college to pay off.
Monday, October 15, 2012
Time To Think About Cold Weather...And Heating Bills
The seasons are changing…again. The days are getting shorter and the nights colder. That means our furnaces and space heaters will be getting more of a workout. It also means that we can expect to see an increase in our utility bills as a result.
This is the time to begin thinking about saving money on those utility bills. Even if money is an issue when considering ways to cut down on your energy bills, there are upgrades which you can do yourself for less than $50 dollars each.
One of the best ways to stop cold drafts from sucking the heat out of your home is the buy a door sweep (I love these things). These handy little items attach to the bottom of your door to keep the cold air out, and the heat in. Door sweeps come in different variations, including those that attach with screws and those with self-stick adhesive backs. If buying one of these is financially problematic for you, consider attaching a thin piece of rubber to the door base; it has the same effect.
To stop air from seeping of your fireplace and out of your home, use a chimney plug. These simple, air-filled items usually average around $50 dollars in cost, and only take a few minutes to inflate and install.
Lighting is another area to cut energy costs. Newer, more energy efficient “green” light bulbs can now outlast the more traditional iridescent bulbs by a factor of 10, and can cut your lighting cost by upwards of 75%. Florescent bulbs, although not as environmentally friendly also have the same effect…more lighting for half the costs. Other efficient options include CFLs, LEDs and halogen bulbs.
An old trick my father used to do was to wrap a blanket around the hot water heater. This old trick helps make your hot water heater run more efficiently. You can actually purchase a “hot water ‘blanket’” from a hardware store for around $20 dollars. It’s almost idiot-proof to install, and helps to keep the water inside the tank warm, which means the water heater won’t have to work as hard.
These small investments will yield big returns when it comes to your utility bills. Taking a few minutes to think about and prepare for the colder weather now will save you a headache of a bill (or bills) later.
This is the time to begin thinking about saving money on those utility bills. Even if money is an issue when considering ways to cut down on your energy bills, there are upgrades which you can do yourself for less than $50 dollars each.
One of the best ways to stop cold drafts from sucking the heat out of your home is the buy a door sweep (I love these things). These handy little items attach to the bottom of your door to keep the cold air out, and the heat in. Door sweeps come in different variations, including those that attach with screws and those with self-stick adhesive backs. If buying one of these is financially problematic for you, consider attaching a thin piece of rubber to the door base; it has the same effect.
To stop air from seeping of your fireplace and out of your home, use a chimney plug. These simple, air-filled items usually average around $50 dollars in cost, and only take a few minutes to inflate and install.
Lighting is another area to cut energy costs. Newer, more energy efficient “green” light bulbs can now outlast the more traditional iridescent bulbs by a factor of 10, and can cut your lighting cost by upwards of 75%. Florescent bulbs, although not as environmentally friendly also have the same effect…more lighting for half the costs. Other efficient options include CFLs, LEDs and halogen bulbs.
An old trick my father used to do was to wrap a blanket around the hot water heater. This old trick helps make your hot water heater run more efficiently. You can actually purchase a “hot water ‘blanket’” from a hardware store for around $20 dollars. It’s almost idiot-proof to install, and helps to keep the water inside the tank warm, which means the water heater won’t have to work as hard.
These small investments will yield big returns when it comes to your utility bills. Taking a few minutes to think about and prepare for the colder weather now will save you a headache of a bill (or bills) later.
Sunday, October 14, 2012
The Higher Costs of Banking...And How To Avoid it!
Those of us old enough remember the early 1980s. Interest rates were high, which made borrowing money from and paying it back to banks extremely costly. The upside to this was that banks also paid out higher interest on personal saving accounts, which was only fair since banks were making money off of the personal deposits of its depositors, both large and small. However, to offset the higher interest they were paying to customers who had savings accounts with their banks, small banks began imposing fees on these accounts.
Then in the late 1980s, these small banks began to lure customers with free checking when their customer base began to thin out. Soon, the larger banks got into the act as they tried to siphon off the increasing numbers of customers the smaller banks winning over. The result was that by the mid- to late 1990s, free customer checking had become a banking industry standard.
But in recent years, the trend has been reversing. According to figures released by a Bankrate Inc. survey last month, only “39% of noninterest checking accounts are free to all customers, down from 45% in 2011 and a peak of 76% in 2009.” And although last-year’s public outcry forced banks to back away from the imposition of new fees when they were proposed last year, it hasn’t stopped banks from doubling-down on existing fees. The majority of banks have raised their fees on ATM transactions, checking account overdrafts, and minimum-balance amount fees. The result is a landscape of new and oftentimes imaginative fees. For example:
The reason often cited for the introduction new banking fees are simple. For starters, we must remember that banks are in business to seek profit. As such, they are beholden to their shareholders to ensure that turning a profit is the end result of their daily business transactions. Secondly, banks are attempting to recoup losses as a result of federal legislation in the form of the so-called Durbin Amendment.
The amendment, a last-minute addition to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 cap on the fees bank could charge retailers such as Target each time a customer used their debit card there. The bill lowered swipe fees – the fee charged to merchants every time a customer pays with plastic – on debit cards issued by big banks. Whereas before the introduction of the Durbin Amendment, debit-card issuing banks would take a small percentage of that total from retailers whenever a customer would make a purchase with their debit cards, banks are now limited to charging retailers roughly 23 cents per swipe. That particular lowered revenue stream for banks forced them to make up the profit loss in—you guessed it—charging you and I higher fees as the cost of doing business with banks.
Click to enlarge graphic
The result is a list of big banks charging higher fees. Examples include:
So how can you and I avoid paying higher fees for the cost of banking? First, watch a recent segment (below) from NBC’s “Today Show” for starter for some tips.
Second—and in the immortal words of Smokey Robinson—“shop around!” Banks by law must make their account fee schedules available for you. I’ve already provided a partial list of the largest banks and their customer account fees.
Some banks have policies that result in few, if any problems in accessing their information on their checking account fees. However, there are banks with whom you may have to dig a little deeper than picking up a simple brochure in one of their branch offices (see: "Banks That Play Hide-the-Fee, And Those That Don't"). Also, consider the following suggestions:
-Consider a credit union. Credit unions are not-for-profit, and aren't under pressure to nickle and dime their customers to satisfy their stock-holders. For the most part, their account fees are usually lower than banks, and their overdraft fees tend to be better.
-Bank online. Big banks typically maintain a physical presences in the form of a building and their branch offices...which cost them money to maintain. Guess where the cost of maintaining these money houses is shifted? Online-only banks often have the best terms and conditions. Because some of these banks have no physical branches to maintain, they are able to offer better rewards and charge fewer fees. However, many traditional banks have online-only accounts too. Bank of America’s eBanking account has no minimum balance requirement and waives the monthly fee if you agree to do all your banking via the Internet and ATMs.
-The most obvious--Meet the minimum or average balance requirements. This is easiest way to avoid the monthly fee at banks. Maintain the minimum balance, and avoid withdrawals which result in lowering the balance below this point, except in emergencies. Shop around for the banks with lower minimums.
-If your one of those individuals who has no problem maintain larger balances, consider depositing your money into an interest checking account. Most banks do not pay interests on accounts unless you are able to maintain the monthly (or daily) minimum.
-Sign up for direct deposit. If you can’t maintain the minimum monthly balance requirement, you may qualify for free checking by authorizing one or two direct deposits to your account each month. If you get a regular paycheck, your employer or sponsoring agency can help you set it up. Like a minimum balance requirement, direct deposit encourages you to keep money in your account, and banks like that. It tells them they can invest your money and use it to make loans, so your account is more likely to be profitable without extra -Avoid overdraft protection. This is one of the biggest rip-offs to banking customers there is. Don't be afraid to ask the banks you're interested in whether they require their customers to have this service (as a result of the Electronic Fund Transfer Act, bank customers must now choose whether or not they want to opt into overdraft protection). If they don't, by all means consider this bank seriously. Otherwise, avoid this "protection." The average overdraft fee is $20 to $30 per transaction.
-Look into banks which offer special discounts to college students, seniors, veterans, or other groups. That alone is worth at least four lattes. Chase, for example, offers a checking account especially for college students that works just like their regular Total Checking account, except it will waive the monthly fee for students.
If you find yourself on the verge of being nickled-and-dimed into living paycheck-by-paycheck—the death of a thousand financial paper cuts—you don’t have to settle! If you don’t like the account you have now, or don’t like what you’re paying, by all means change banks! Don’t like the way your bank is treating you? Can’t set up direct deposit or meet the minimum monthly balance requirement? Take a look at what’s available in your neighborhood; your local credit union or community bank may be able to offer you a better deal. I It’s your money, so make sure it works for you.
But in recent years, the trend has been reversing. According to figures released by a Bankrate Inc. survey last month, only “39% of noninterest checking accounts are free to all customers, down from 45% in 2011 and a peak of 76% in 2009.” And although last-year’s public outcry forced banks to back away from the imposition of new fees when they were proposed last year, it hasn’t stopped banks from doubling-down on existing fees. The majority of banks have raised their fees on ATM transactions, checking account overdrafts, and minimum-balance amount fees. The result is a landscape of new and oftentimes imaginative fees. For example:
• The recent fee change at SunTrust has resulted in a $36 fee on all basic checking overdrafts, an increase from the $25 for-the-first overdraft, and $36 for each subsequent payment.
• Wells Fargo customers must now keep $1,500 in their basic checking accounts or make $500 in direct deposits each month to avoid a $7 monthly fee.
• U. S. Bank will charge a $15 fee for an overdraft transaction that is $15 or less, and $35 for any overdraft over that amount.
• In June, Fifth Third Bank began charging $37 per overdraft after a $25 fee is assessed for an initial overdraft transaction. This replaces old policy of charging a $33 fee for the second, third, and fourth overdrafts in a twelve month period.
The reason often cited for the introduction new banking fees are simple. For starters, we must remember that banks are in business to seek profit. As such, they are beholden to their shareholders to ensure that turning a profit is the end result of their daily business transactions. Secondly, banks are attempting to recoup losses as a result of federal legislation in the form of the so-called Durbin Amendment.
The amendment, a last-minute addition to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 cap on the fees bank could charge retailers such as Target each time a customer used their debit card there. The bill lowered swipe fees – the fee charged to merchants every time a customer pays with plastic – on debit cards issued by big banks. Whereas before the introduction of the Durbin Amendment, debit-card issuing banks would take a small percentage of that total from retailers whenever a customer would make a purchase with their debit cards, banks are now limited to charging retailers roughly 23 cents per swipe. That particular lowered revenue stream for banks forced them to make up the profit loss in—you guessed it—charging you and I higher fees as the cost of doing business with banks.
Click to enlarge graphic
The result is a list of big banks charging higher fees. Examples include:
1. Bank of America
• Checking: $25 deposit to open; $8.95 monthly fee unless statements are paperless and deposits/withdrawals are done online or by ATM.
• Debit Card: Included with all checking accounts (no additional fees).
2. Wells Fargo
• Checking: $100 deposit to open; $5 monthly fee unless direct deposit or average balance of $1,500.
• Debit Card: Included with all checking accounts (no additional fees).
3. J.P.Morgan Chase
• Checking: $25 deposit to open; $12 monthly fee unless direct deposit of at least $500, minimum balance of $1,500 or $5,000 average daily balance in linked accounts.
• Debit Card: Included with all checking accounts (no additional fees).
4. Citigroup
• Checking: $0 to open; $10 monthly fee unless balance of at least $1,500 in prior month or one direct deposit and one bill payment each month.
• Debit Card: Included with all checking accounts (no additional fees).
5. US Bank
• Checking: $50 to open; $6.95 monthly fee with online statements or $8.95 with paper statements unless direct deposits of at least $500 or average account balance of $1,500.
• Debit Card: Included with all checking accounts (no additional fees).
6. PNC
• Checking: $25 to open; no monthly fee.
• Debit Card: Included with all checking accounts (no additional fees).
7. TD Bank
• Checking: $0 to open; $2.99 monthly fee with online statements or $3.99 monthly fee with paper statements.
• Debit Card: Included with all checking accounts (no additional fees).
8. Capital One
• Checking: $50 to open; $8.95 monthly fee unless $300 minimum daily balance or monthly direct deposit of at least $250.
• Debit Card: Included with all checking accounts (no additional fees).
9. SunTrust
• Checking: $100 to open; $7 monthly fee unless minimum balance of $500 or direct deposit.
• Debit Card: Included with all checking accounts (no additional fees).
10. BB&T
• Checking: $50 to open; $10 monthly fee unless direct deposit of at least $100, $1,500 average balance or a mortgage with BB&T.
• Debit Card: Included with all checking accounts (no additional fees).
So how can you and I avoid paying higher fees for the cost of banking? First, watch a recent segment (below) from NBC’s “Today Show” for starter for some tips.
Some banks have policies that result in few, if any problems in accessing their information on their checking account fees. However, there are banks with whom you may have to dig a little deeper than picking up a simple brochure in one of their branch offices (see: "Banks That Play Hide-the-Fee, And Those That Don't"). Also, consider the following suggestions:
-Consider a credit union. Credit unions are not-for-profit, and aren't under pressure to nickle and dime their customers to satisfy their stock-holders. For the most part, their account fees are usually lower than banks, and their overdraft fees tend to be better.
-Bank online. Big banks typically maintain a physical presences in the form of a building and their branch offices...which cost them money to maintain. Guess where the cost of maintaining these money houses is shifted? Online-only banks often have the best terms and conditions. Because some of these banks have no physical branches to maintain, they are able to offer better rewards and charge fewer fees. However, many traditional banks have online-only accounts too. Bank of America’s eBanking account has no minimum balance requirement and waives the monthly fee if you agree to do all your banking via the Internet and ATMs.
-The most obvious--Meet the minimum or average balance requirements. This is easiest way to avoid the monthly fee at banks. Maintain the minimum balance, and avoid withdrawals which result in lowering the balance below this point, except in emergencies. Shop around for the banks with lower minimums.
-If your one of those individuals who has no problem maintain larger balances, consider depositing your money into an interest checking account. Most banks do not pay interests on accounts unless you are able to maintain the monthly (or daily) minimum.
-Sign up for direct deposit. If you can’t maintain the minimum monthly balance requirement, you may qualify for free checking by authorizing one or two direct deposits to your account each month. If you get a regular paycheck, your employer or sponsoring agency can help you set it up. Like a minimum balance requirement, direct deposit encourages you to keep money in your account, and banks like that. It tells them they can invest your money and use it to make loans, so your account is more likely to be profitable without extra -Avoid overdraft protection. This is one of the biggest rip-offs to banking customers there is. Don't be afraid to ask the banks you're interested in whether they require their customers to have this service (as a result of the Electronic Fund Transfer Act, bank customers must now choose whether or not they want to opt into overdraft protection). If they don't, by all means consider this bank seriously. Otherwise, avoid this "protection." The average overdraft fee is $20 to $30 per transaction.
-Look into banks which offer special discounts to college students, seniors, veterans, or other groups. That alone is worth at least four lattes. Chase, for example, offers a checking account especially for college students that works just like their regular Total Checking account, except it will waive the monthly fee for students.
If you find yourself on the verge of being nickled-and-dimed into living paycheck-by-paycheck—the death of a thousand financial paper cuts—you don’t have to settle! If you don’t like the account you have now, or don’t like what you’re paying, by all means change banks! Don’t like the way your bank is treating you? Can’t set up direct deposit or meet the minimum monthly balance requirement? Take a look at what’s available in your neighborhood; your local credit union or community bank may be able to offer you a better deal. I It’s your money, so make sure it works for you.
Friday, September 21, 2012
Video: The Best Times to Buy, Sell, & Save
This morning on CBS' Morning Show, author Mark DiVinchenzo was interviewed about his new book, "Buy Shoes on Wednesday and Tweet at 4:00: More of the Best Times to Buy This, Do That and Go There."
In his book, DiVinchenzo reveals little-known optimal times consumers can maximize both savings and services as they seek make the most of their hard-earned dollars. In the video (below), he gives viewers a sample of the ways by which they can save as they shop around.
Thursday, August 23, 2012
Thinking About Unemployment...
During the current economic climate, symbolized by extended period of unemployment, those seeking employment should not only invest as much time as possible in trying to secure employment, but engage in introspection insofar how they are going to survive.
Additionally, for those fortunate to have not lost their employment during the economic downturn, should likewise consider how they are going to survive the inevitable economic "rainy days" that will come at some point. I found an interesting graphic, courtesy of this morning's edition of USAToday that should get you to thinking on this point.
Additionally, for those fortunate to have not lost their employment during the economic downturn, should likewise consider how they are going to survive the inevitable economic "rainy days" that will come at some point. I found an interesting graphic, courtesy of this morning's edition of USAToday that should get you to thinking on this point.
Sunday, August 5, 2012
Healthy Food Shopping - Vegetables (Part Two)
In giving the world my 2-cents in how best to pinch pennies and save money, I have to work around my personal dilemma; How to maintain good health while spending hard-earned money in a way which doesn't break the bank.
In one of the cruel ironies of our market economy, it's actually cheaper purchase unhealthy foods than to purchase more healthy foods which prolong our lifespans. In the short-term, processed foods, complete with their empty calories and dangerous levels of unhealthy fats help us make it from paycheck to paycheck with a small level of financial peace-of-mind. In the long-term, they will impact our general health, which potentially adds another dimension to our life's problems, that of the impact health care costs to address issues tied to our diets.
Healthy eating is a little more expensive, but has the opposite long-term payoff. And there are ways to circumnavigate the confusing maze of thinking required to lessen the financial strain of healthy eating. such as when shopping for healthy eating, stick to the outside perimeter of your local grocery store...where fruits, vegetables, and the more healthy selections are stocked).
Watch the following segment from a recent NBC's The Today Show for other tips.
Saturday, August 4, 2012
Taming Those Medical Bills
So I’m watching CBS Saturday Morning this morning, and a very interesting segment aired. The segment spotlighted a way in which to save money on the many medical billing mistakes that are apparently found when we pay for medical procedures. As I watched this segment, I began to think about aspects of the current health care regime in America.
When it comes to socio-political human behavior, two related questions have always plagued me: Why do people do things which they know will adversely affect their health, and how is it that in a nation where upwards of 2 million people a year declare medical bill-related bankruptcy how some people can be so against universally affordable health care insurance? In fact, one of the things that I’ve always personally campaigned for in my writings is the necessity for universally affordable health care insurance. Slam the notion as “socialism,” “health-care rationing,” or whatever narrow ideologically-driven level of thinking you want…the wallets of many Americans will be comforted by this notion.
But next to the pipe dream of totally free health care, the next best thing in helping us pay our medical bills is the reality that there are apparently businesses in America which help customers interested in their services find many of the overcharges which between 40-80 percent of all medical bills contain ("How to Fight a Bogus Bill"). In addition to watching the video segment from this morning’s segment of CBS Saturday Morning,
I have taken the liberty of posting—in addition to some of the advice that I’ve received—other colorful options for helping Consumers curtail high medical bills.
- Despite the reality that you have other financial responsibilities—housing, utilities, food, childcare, etc.—every effort should be made to pay medical bills. Because bill collectors have become so much more aggressive in attempting to collect owed debt (see: "Debtor's Prison 2.0" for example), ignoring this responsibility will not make it or the consequences go away.
- Paying off large portions of a medical bill (or the bill in its entirety) could be even more beneficial to you beyond the obvious. Many doctors, clinics, and hospitals will generally offer a 20-30% off medical bills if you can pay them off in a shorter period of time, so by all means seek to negotiate (to help accomplish paying off my own medical bills, I was lead to a third party company, like Access One, which I took advantage of by doubling and sometimes tripling the payments in order to erase my payment obligations 2 years before the 36 month projected payoff date).
- On the point of negotiating bills (the basis of the video which spurred this particular posting), many times you can talk directly with your hospital billing department, doctor's office or medical clinic to gain more favorable payment options (my sister once negotiated with a dentist office to have her medical bill cut by $600; she was paying in cash for services). The fact that doctors and hospitals don’t want to send any unpaid debt to collections—only to potentially collect at a loss 80 cents or less on the dollar—operates in your favor with any negotiation efforts.
- On the point of negotiating bills (the basis of the video which spurred this particular posting), many times you can talk directly with your hospital billing department, doctor's office or medical clinic to gain more favorable payment options (my sister once negotiated with a dentist office to have her medical bill cut by $600; she was paying in cash for services). The fact that doctors and hospitals don’t want to send any unpaid debt to collections—only to potentially collect at a loss 80 cents or less on the dollar—operates in your favor with any negotiation efforts.
- Knowing full well that some proud individuals may avoid this next suggestion like the plague, consider the assistance of state and/or federal government-based programs to help defray or even pay your medical debt/bills. Both Medicaid and Medicare programs, dependent upon the circumstances, could be a literal life-saver in helping to address medical costs. The eligibility requirements for Medicaid varies state-by-state, but generally provides complete coverage
for low-income families (in addition to income, eligibility factors include age, pregnancy status, disability status, income, citizenship, and assets). Medicare (also based on certain requirements) is for individuals above 65 or for young individuals who are disabled. In addition, each state has a State Children Health Insurance Plans (SCHIP) which offers subsidized health insurance for children who don’t otherwise qualify for Medicaid.
- Every hospital has a financial aid or charity department (required by law for those who want to retain or are seeking non-profit tax status). These departments can be a helpful source in helping particularly hard-luck cases. There are also plenty of other non-profit organizations that provide help with medical bills. In either case, like with government programs, you need to meet certain requirements to qualify for financial assistance.
To summarize, if you can make small payments, the reality is that each option has its advantages and disadvantages. If you can make any kind of consistent payments, self-negotiation or working with a medical debt reduction specialist (i.e., outside/third-party negotiators) are your best options. If you cannot make a payment, government programs, charities and financial aid departments should be contacted.
When it comes to socio-political human behavior, two related questions have always plagued me: Why do people do things which they know will adversely affect their health, and how is it that in a nation where upwards of 2 million people a year declare medical bill-related bankruptcy how some people can be so against universally affordable health care insurance? In fact, one of the things that I’ve always personally campaigned for in my writings is the necessity for universally affordable health care insurance. Slam the notion as “socialism,” “health-care rationing,” or whatever narrow ideologically-driven level of thinking you want…the wallets of many Americans will be comforted by this notion.
But next to the pipe dream of totally free health care, the next best thing in helping us pay our medical bills is the reality that there are apparently businesses in America which help customers interested in their services find many of the overcharges which between 40-80 percent of all medical bills contain ("How to Fight a Bogus Bill"). In addition to watching the video segment from this morning’s segment of CBS Saturday Morning,
I have taken the liberty of posting—in addition to some of the advice that I’ve received—other colorful options for helping Consumers curtail high medical bills.
- Despite the reality that you have other financial responsibilities—housing, utilities, food, childcare, etc.—every effort should be made to pay medical bills. Because bill collectors have become so much more aggressive in attempting to collect owed debt (see: "Debtor's Prison 2.0" for example), ignoring this responsibility will not make it or the consequences go away.
- Paying off large portions of a medical bill (or the bill in its entirety) could be even more beneficial to you beyond the obvious. Many doctors, clinics, and hospitals will generally offer a 20-30% off medical bills if you can pay them off in a shorter period of time, so by all means seek to negotiate (to help accomplish paying off my own medical bills, I was lead to a third party company, like Access One, which I took advantage of by doubling and sometimes tripling the payments in order to erase my payment obligations 2 years before the 36 month projected payoff date).
- On the point of negotiating bills (the basis of the video which spurred this particular posting), many times you can talk directly with your hospital billing department, doctor's office or medical clinic to gain more favorable payment options (my sister once negotiated with a dentist office to have her medical bill cut by $600; she was paying in cash for services). The fact that doctors and hospitals don’t want to send any unpaid debt to collections—only to potentially collect at a loss 80 cents or less on the dollar—operates in your favor with any negotiation efforts.
- On the point of negotiating bills (the basis of the video which spurred this particular posting), many times you can talk directly with your hospital billing department, doctor's office or medical clinic to gain more favorable payment options (my sister once negotiated with a dentist office to have her medical bill cut by $600; she was paying in cash for services). The fact that doctors and hospitals don’t want to send any unpaid debt to collections—only to potentially collect at a loss 80 cents or less on the dollar—operates in your favor with any negotiation efforts.
- Knowing full well that some proud individuals may avoid this next suggestion like the plague, consider the assistance of state and/or federal government-based programs to help defray or even pay your medical debt/bills. Both Medicaid and Medicare programs, dependent upon the circumstances, could be a literal life-saver in helping to address medical costs. The eligibility requirements for Medicaid varies state-by-state, but generally provides complete coverage
for low-income families (in addition to income, eligibility factors include age, pregnancy status, disability status, income, citizenship, and assets). Medicare (also based on certain requirements) is for individuals above 65 or for young individuals who are disabled. In addition, each state has a State Children Health Insurance Plans (SCHIP) which offers subsidized health insurance for children who don’t otherwise qualify for Medicaid.
- Every hospital has a financial aid or charity department (required by law for those who want to retain or are seeking non-profit tax status). These departments can be a helpful source in helping particularly hard-luck cases. There are also plenty of other non-profit organizations that provide help with medical bills. In either case, like with government programs, you need to meet certain requirements to qualify for financial assistance.
To summarize, if you can make small payments, the reality is that each option has its advantages and disadvantages. If you can make any kind of consistent payments, self-negotiation or working with a medical debt reduction specialist (i.e., outside/third-party negotiators) are your best options. If you cannot make a payment, government programs, charities and financial aid departments should be contacted.
Monday, July 16, 2012
Groceries & Credit - Expect To Pay More Soon!
One of the problems with having a mortal existence is that, in spite of the ever-constant grind to secure our material needs, many things are simply beyond our control. Two of these things are market forces and the weather. And when these two forces combine, we are often left stranded on the intersection of supply and demand, and market expectations. The result is usually a choice of us consumers having to deal with less of what we want/need, or having to pay more. In two particular cases from last week, consumers can soon expect to pay more due to instances of things being beyond our control.
Late last week, the major credit card and many of the nation's retailer reached a record settlement in a long-running lawsuit that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards. Visa, MasterCard and banks agreed to pay retailers at least $6 billion in a 10-year case that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards.
Called by lawyers involved in the case the "largest antitrust settlement in U.S. history," the settlement is seen as a major victory for merchants that have long complained about the billions of dollars in so-called "swipe" or "interchange" fees that they pay to banks for purchases made using plastic. But at a time when shoppers increasingly are using credit and debit cards, merchants will face a dilemma: Whether to charge shoppers extra for using plastic, and if so, how to do so without angering them.
As part of the settlement, announced last Friday, retailers will be allowed to charge customers more if they pay using a credit card, just as many gas stations do currently. The upshot...expect to pay more every time you swipe your credit and debit cards.
The winners in this Big Money settlement: the major credit card issuing banks and retailers! The losers...you and I as consumers. The advice here is to avoid being nickeled-and-dimed by banks for using debit and credit cards, and use cash whenever possible
Late last week, the National Climatic Data Center announced that 55% of the country “was in a moderate to extreme drought” ending for the month of June; no improvement in this condition is predicted for the month of July. The immediate result is horribly-impaired yields and major plant damage to many water-dependent crops, including soybeans, corn, and wheat…the latter two being hit particularly hard. The intermediate result is the expected rise in prices we will all be feeling in the coming months. Current trends portent this impending reality.
As of this writing the price of corn is already up 38% in price, while wheat is up 29%, both due to the current drought. What’s more, there is a better than good chance that we will experience record beef prices in the near future because of the rising prices of feed, and the time it takes for shrinking beef yields to recover.
And with food-themed occasions such as Thanksgiving and Christmas in the not-too-distant future, expect to spend more about that time of year…and not just on gifts. The time to plan ahead is now.
For a detailed explanation of this year's drought effect on farm crops and food prices, watch the video:
Late last week, the major credit card and many of the nation's retailer reached a record settlement in a long-running lawsuit that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards. Visa, MasterCard and banks agreed to pay retailers at least $6 billion in a 10-year case that alleged the card issuers conspired to fix the fees that stores pay to accept credit cards.
Called by lawyers involved in the case the "largest antitrust settlement in U.S. history," the settlement is seen as a major victory for merchants that have long complained about the billions of dollars in so-called "swipe" or "interchange" fees that they pay to banks for purchases made using plastic. But at a time when shoppers increasingly are using credit and debit cards, merchants will face a dilemma: Whether to charge shoppers extra for using plastic, and if so, how to do so without angering them.
As part of the settlement, announced last Friday, retailers will be allowed to charge customers more if they pay using a credit card, just as many gas stations do currently. The upshot...expect to pay more every time you swipe your credit and debit cards.
The winners in this Big Money settlement: the major credit card issuing banks and retailers! The losers...you and I as consumers. The advice here is to avoid being nickeled-and-dimed by banks for using debit and credit cards, and use cash whenever possible
Late last week, the National Climatic Data Center announced that 55% of the country “was in a moderate to extreme drought” ending for the month of June; no improvement in this condition is predicted for the month of July. The immediate result is horribly-impaired yields and major plant damage to many water-dependent crops, including soybeans, corn, and wheat…the latter two being hit particularly hard. The intermediate result is the expected rise in prices we will all be feeling in the coming months. Current trends portent this impending reality.
As of this writing the price of corn is already up 38% in price, while wheat is up 29%, both due to the current drought. What’s more, there is a better than good chance that we will experience record beef prices in the near future because of the rising prices of feed, and the time it takes for shrinking beef yields to recover.
And with food-themed occasions such as Thanksgiving and Christmas in the not-too-distant future, expect to spend more about that time of year…and not just on gifts. The time to plan ahead is now.
For a detailed explanation of this year's drought effect on farm crops and food prices, watch the video:
Sunday, July 15, 2012
Pain At The Pump, And What You Don't Know
With the arrival of summertime and the reality that more drivers are on the roads, many of us as consumers find ourselves victimized in the wallet by fluctuating gasoline prices. And on the high end of fluctuating gasoline prices is a fact based on simple physics; that the heat and humidity of the summer translates to lower gas mileage for the overwhelming majority vehicles on the road.
Simply put, when gasoline gets hot, it loses a portion of its energy. The result is our cars get fewer miles per gallon. To illustrate, when we fill up our gas tanks when it is 60 degrees, the typical car can travel up to 500 miles. But fill it up when it's 90 degrees and you get 10 miles less out of that same tank. Now I know that 10 miles less a fill-up doesn’t seem like much, but add it up over a period of a year, factor in the additional extra unpaid miles posted on our odometers, and multiply this by the millions of cars and car owners who are equally as affected by the same reality, and you get an extra $1.5 billion a year (according to a 2007 Congressional report) that we as consumers pay during the warmer summer months—more profit for oil companies who are already raking in record profits every quarter. In effect, we consumers pay the same price for less gas at certain times of the year. And I needn’t have to tell you that in these lean economic times, every penny, every financial advantage could literally make the difference between making it to the next payday with a few dollars left in hand or not.
And although it seems like there is little that consumers can do about the laws of physics, there is actually a money-saving measure that is open to both gas stations and customers. For the last 20 years or so, 90% of Canadian gas stations have been using pumps which measure gasoline output, and automatically make adjustments for temperature. The result? When it’s hot, customers receive more gasoline for their money.
In America, and sadly as you might suspect, these pumps are only not widely available to motorists, but their installation has been and continues to be fought by gas station owners. "We simply don't agree that the juice is worth the squeeze," said Dan Gilligan, an official from the Petroleum Marketers Association of America. Gilligan insist that installing these pumps at most gasoline stations would result in consumers paying more for gasoline anyway in the long run. "Putting a $2.4 billion cost on gas station owners would only transfer $2.4 billion to the consumer," cited Gilligan, as stations sought to recover the costs of doing so.
Some driver’s disagree, so much so in fact that a class-action lawsuit has been filed against some 21 states, seeking to force stations to install the type consumer-friendly pumps they use in Canadian gasoline stations. And there is some hope on the horizon that American consumers may see the benefit of these pumps.
As part of a legal settlement, the cost-saving chain Costco recently agreed to install the new pumps at its gas stations in warm weather states (pending court approval). And now, three of the big oil companies — BP, Shell and ConocoPhillips — are settling too, though the details of the deal are still unclear.
Other gas station chains however, continue to fight the lawsuits.
In the meantime, here are some other gas and money saving tips for filling up at the pump.
-Driver slower, and avoid rapid acceleration. The aerodynamic drag placed on your car at higher speeds (70 mph or higher) affects your mileage negatively…so too does rapid acceleration. Unless you are a woman in labor, the higher costs in potential speeding tickets and mileage loss simply isn’t worth it getting to your destination 1 or 2 minutes sooner (or maybe even not at all).
-Avoid excess idling. An automobile sitting idle burns more gas than restarting the engine and put unnecessary wear on the engine. This doesn’t mean stopping and restarting your engine in the 30 second to 1 minute it takes for the average traffic light to change. This is point addressing sitting in traffic during heavy congestion or that “quick” dash in and out of a store.
-Watch how much weight you carry in your automobile. The use of a roof rack provides additional cargo space, especially for smaller cars. But overloading your car, both inside and out, reduces fuel efficiency (by an estimated 1-2%). It might be a good idea to empty out your trunk of unnecessary clutter held there from the colder months.
-Maintain your automobile. Keeping your tires inflated to the proper pressure will result in longer wear and can improve your gas mileage by about 3.3%. Air pressure should be checked frequently (at least every couple of weeks), especially prior to long trips. And on the note of tire maintenance, driving an automobile that is not in proper alignment produces premature wear on tires, and affects gas mileage negatively. Check your gas caps for damage or loose fitting. A tight-fitting gas cap can help prevent gas—and money evaporation. And replace dirty air filters. Clean air filter can improve your gas mileage by as much as 10%, which is a savings of about 15 cents per gallon
-Plan you trips. Try to ensure that one trip covers all of your errands at one time. Several short stop and go errands can use twice as much fuel than a longer multipurpose trip covering the same distance.
In lieu of smart-pumps which can help us reduce how much we lose in lost fuel mileage in the warm months, we can use smart-sense to help us save money…until the gas stations wise up and decide to help us do so.
Simply put, when gasoline gets hot, it loses a portion of its energy. The result is our cars get fewer miles per gallon. To illustrate, when we fill up our gas tanks when it is 60 degrees, the typical car can travel up to 500 miles. But fill it up when it's 90 degrees and you get 10 miles less out of that same tank. Now I know that 10 miles less a fill-up doesn’t seem like much, but add it up over a period of a year, factor in the additional extra unpaid miles posted on our odometers, and multiply this by the millions of cars and car owners who are equally as affected by the same reality, and you get an extra $1.5 billion a year (according to a 2007 Congressional report) that we as consumers pay during the warmer summer months—more profit for oil companies who are already raking in record profits every quarter. In effect, we consumers pay the same price for less gas at certain times of the year. And I needn’t have to tell you that in these lean economic times, every penny, every financial advantage could literally make the difference between making it to the next payday with a few dollars left in hand or not.
And although it seems like there is little that consumers can do about the laws of physics, there is actually a money-saving measure that is open to both gas stations and customers. For the last 20 years or so, 90% of Canadian gas stations have been using pumps which measure gasoline output, and automatically make adjustments for temperature. The result? When it’s hot, customers receive more gasoline for their money.
In America, and sadly as you might suspect, these pumps are only not widely available to motorists, but their installation has been and continues to be fought by gas station owners. "We simply don't agree that the juice is worth the squeeze," said Dan Gilligan, an official from the Petroleum Marketers Association of America. Gilligan insist that installing these pumps at most gasoline stations would result in consumers paying more for gasoline anyway in the long run. "Putting a $2.4 billion cost on gas station owners would only transfer $2.4 billion to the consumer," cited Gilligan, as stations sought to recover the costs of doing so.
Some driver’s disagree, so much so in fact that a class-action lawsuit has been filed against some 21 states, seeking to force stations to install the type consumer-friendly pumps they use in Canadian gasoline stations. And there is some hope on the horizon that American consumers may see the benefit of these pumps.
As part of a legal settlement, the cost-saving chain Costco recently agreed to install the new pumps at its gas stations in warm weather states (pending court approval). And now, three of the big oil companies — BP, Shell and ConocoPhillips — are settling too, though the details of the deal are still unclear.
Other gas station chains however, continue to fight the lawsuits.
In the meantime, here are some other gas and money saving tips for filling up at the pump.
-Driver slower, and avoid rapid acceleration. The aerodynamic drag placed on your car at higher speeds (70 mph or higher) affects your mileage negatively…so too does rapid acceleration. Unless you are a woman in labor, the higher costs in potential speeding tickets and mileage loss simply isn’t worth it getting to your destination 1 or 2 minutes sooner (or maybe even not at all).
-Avoid excess idling. An automobile sitting idle burns more gas than restarting the engine and put unnecessary wear on the engine. This doesn’t mean stopping and restarting your engine in the 30 second to 1 minute it takes for the average traffic light to change. This is point addressing sitting in traffic during heavy congestion or that “quick” dash in and out of a store.
-Watch how much weight you carry in your automobile. The use of a roof rack provides additional cargo space, especially for smaller cars. But overloading your car, both inside and out, reduces fuel efficiency (by an estimated 1-2%). It might be a good idea to empty out your trunk of unnecessary clutter held there from the colder months.
-Maintain your automobile. Keeping your tires inflated to the proper pressure will result in longer wear and can improve your gas mileage by about 3.3%. Air pressure should be checked frequently (at least every couple of weeks), especially prior to long trips. And on the note of tire maintenance, driving an automobile that is not in proper alignment produces premature wear on tires, and affects gas mileage negatively. Check your gas caps for damage or loose fitting. A tight-fitting gas cap can help prevent gas—and money evaporation. And replace dirty air filters. Clean air filter can improve your gas mileage by as much as 10%, which is a savings of about 15 cents per gallon
-Plan you trips. Try to ensure that one trip covers all of your errands at one time. Several short stop and go errands can use twice as much fuel than a longer multipurpose trip covering the same distance.
In lieu of smart-pumps which can help us reduce how much we lose in lost fuel mileage in the warm months, we can use smart-sense to help us save money…until the gas stations wise up and decide to help us do so.
Saturday, June 30, 2012
Healthy Food Shopping - Vegetables
If you're a healthy eater (or a vegetarian like myself), you might find your personal food budget strained by the pricier cost of trying to be proactive in maintaining good health via a healthy diet. However, as I was watching the Saturday version of NBC's The Today Show, I was fortunate enough to come across a piece by Consumer affairs expert and Health Director at Woman's Day Magazine, Amy Brightfield, who provided great advice (see video) on how to shop healthy and smart, saving money on your food bill in the process.
Summertime Is Time To Save Money On The Laundry
It’s officially summertime! And when I personally think of summer, I think of how we did things when I was a child. For instance, I think of how I learned to wash and dry clothes from my mother (my father was more of the outdoors maintenance person). Back in those days of limited resources, mom taught us kids how to get the most out of the necessity of having to spend the hardest of earned money to go wash clothes (for us, it meant a trip to the local laundromat to wash our family’s clothes). Part of my mother’s strategy was to use this time of year to save money by hanging clothes out to dry.
To this day, I still use many of her money-saving practices, along with some of my own tricks that I learned along the way. Taking note of the time of year, these are a few of those money-saving tricks that you can use in order to save on doing the laundry:
- Start by using only the warm water cycle (research shows that using 90% of the energy used by the washer is for heating the water used by the washing machine), which works just as well as hot water when washing clothes. Follow by rinsing in cold water. I know it seems counter-intuitive to wash clothes in anything less than hot water, especially whites, but using hot water is more damaging and costly in the long run, causing clothes’ colors to fade quicker and electric bills to rise (besides, you’re going to need to extra money to power the air-conditioner).
- Avoid buying clothes labeled, “dry cleaning only.” Needless to say, doing so can save you a great deal of money, especially if you are in a line of work which requires formal or semi-formal business attire. But for the daring, there are “dry cleaning kits,” which you can purchase at any discount retail store such as K-Mart , Target, and Wal-Mart. I have used these on a couple of occasions, and have had much success with them. For the truly daring, a search of the internet can yield many sites instructing individuals on how to dry clean articles of clothing themselves (write me and I can actually give you the process).
- Avoid washing so often. Unless one is very active, clothes worn for only few hours can be re-worn, especially jeans, which can be worn 2-3 times before washing (needless to say, this doesn’t apply to those loving in warmer climates, or clothes used in exercising).
- Wait until you have enough for a full load, but try to avoid overloading the washer. Overloading the washer doesn’t allow for the agitation process to clean clothes effectively, which could result in the need to rewash…which cost.
- When buying detergents, store brands are just as effective as named-brand detergents. Only in instances cases where you have a particularly delicate item, or one that you wish to preserve should you consider higher-priced brands with a particular function.
- Instead of using costly fabric softeners, try adding a small amount of vinegar to the wash (which reduces static cling and softens the clothes…thank you mom).
- Use this time of year to save money (again, thank you mom) and line-dry your clothes. I personally think naturally air-dried clothes smell so much better, not to mention more cost-effective (again, depending on the area you live in). If you must use a dryer, try to avoid letting the dryer cool between loads (to take advantage of the residual heat. Try to dry like-items together, such as products made of denim, and fold or hand clothes immediately after drying to avoid wrinkles (and the use of irons).
Admittedly, using these items won’t make you a millionaire, but the long-term savings will be put you on the path to taking note of how best to avoid needless spending, especially in these economically lean times.
Thanks mom!
Thursday, June 14, 2012
A Lesson of Caution: Avoiding Hidden Fees & Deceptive Banking Practices
From this evening's broadcast of NBC Nightly News (with Brian Williams), 06/14/2012:
While some banks are moving toward simpler, more consumer-friendly disclosures, others continue to hit customers with “hidden fees and deceptive practices,” according to a recent study by the Pew Charitable Trust analyzing the practices of the country's largest banks and credit unions.
For the complete story, please view the following videos from this evening's broadcast on the subject:
A final word on avoiding questionable banking practices, consumer groups offer these tips to keep more of your money in your account:
• Read all disclosure documents thoroughly.
• Monitor your bank statements closely.
• Sign up for email or text alerts so you know when your account balance is running low.
• Ask questions of the bank about the types of fees they charge and the terms and conditions of the account.
• Consider linking your checking account to a savings account to cover potential overdrafts.
• Shop around. Compare banks and find one that charges the lowest or fewest fees.
• Provide yourself a cushion. This is easier said than done, but it can save a lot of heartache down the road.
• Know the difference between opting out and opting in. If you opt out of overdraft protection, you won't be able to use your debit card if you don't have enough money in your account. You may be embarrassed, but you won’t pay a fee.
While some banks are moving toward simpler, more consumer-friendly disclosures, others continue to hit customers with “hidden fees and deceptive practices,” according to a recent study by the Pew Charitable Trust analyzing the practices of the country's largest banks and credit unions.
For the complete story, please view the following videos from this evening's broadcast on the subject:
A final word on avoiding questionable banking practices, consumer groups offer these tips to keep more of your money in your account:
• Read all disclosure documents thoroughly.
• Monitor your bank statements closely.
• Sign up for email or text alerts so you know when your account balance is running low.
• Ask questions of the bank about the types of fees they charge and the terms and conditions of the account.
• Consider linking your checking account to a savings account to cover potential overdrafts.
• Shop around. Compare banks and find one that charges the lowest or fewest fees.
• Provide yourself a cushion. This is easier said than done, but it can save a lot of heartache down the road.
• Know the difference between opting out and opting in. If you opt out of overdraft protection, you won't be able to use your debit card if you don't have enough money in your account. You may be embarrassed, but you won’t pay a fee.
Debtors' Prison, 2.0
Writer’s Note: Thank you in advance for those of you who have opted to begin reading Beyond Dollars & Sense! This is the very first posting for my blog, which I will use to inform the public about relevant financial issues regarding personal savings, personal debt, and money saving tips in these trying economic times. It is my hope to post a new issue weekly, starting this week, so that others will benefit from the same advice I was fortunate enough to have received (and apply) to my own life.
For my very first posting on Beyond Dollar & Sense!, I thought that I would write about an issue that came to my attention late last year…one that I have a personal familiarity with.
Back in the early 1990s, I witnessed my mother stressing out as a local sheriff’s deputy back in Michigan arrived at her front door, threatening to take her to jail for failure to respond to a civil judgment levied against her. I also remembering her running around scrounging for every dollar she could get her hands on trying to avoid going to jail (for the first and only time) at the tender age of 50. I remembered thinking “Is this legal? There is no more debtors’ prison!”
Fast forward some 20 years later, to a new century, a new millennium…and the same reality of debt collection. Last year, The Wall Street Journal published an article last year entitled, “Welcome To Debtors’ Prison, 2011 Edition.” In the piece, the writer chronicled how, in some states, individuals who find themselves owing money on credit cards, automobile loans, or—in my mother’s case from the 90s—medical bills face the very real prospect of being jailed for debt payments. No, this isn’t the hyperbole of some anti-capitalist leftist…it’s a practice of reality.
Despite the fact that debtor’s prison in America—as a codified law—was outlawed by both the states and the federal government in the 1830’s, modern-day creditors in the form of “aggressive and centralized” collection agencies are taking advantage of existing laws by buying up unpaid debt, and leveraging the power of local courts to collect. And although a full third of U.S. states allow for the jailing of debtors who can’t (or won’t) pay their outstanding bills, six states in particular—Arizona, Arkansas, Illinois, Indiana, Minnesota, and Washington—are stand out as hotbeds of this practice. Before you start saying, “Good…people should pay their debts,” individuals in some of these cases are being jailed without having any idea that they were being sued to collect a debt (not that in these economic times, people are necessarily fixated on being sued for an outstanding bill…not when they are struggling to pay more immediate and more bills).
This does not mean that the practice is an arbitrary procedure. Arrest warrants are generally issued if a borrower defies a court order to repay a debt, or simply doesn't show up in court while a debt is being pursued by interested parties. And among the most frequent seekers of these warrants are retailers, credit-card issuers, landlords and debt collectors, according to court filings and interviews with judges and lawyers.
Driven by a bad economy, high consumer debt, and a growing collection industry that buys and aggressively pursues bad debts, collection agencies have been increasingly employing the use of warrants in order to leverage the power of local and state courts to jail debtors…all in an effort to increase profits. Though not every warrant in every case related to attempts to collect on personal debt results in an arrest and subsequent jailing, in jurisdictions where the state gives courts explicit sanction to do so, judges can (and do) jail individuals for periods up to and including “indefinite incarceration” for failure to pay as little as $100 in debt to a given company. Whether a debtor is locked up depends largely on where the person lives because simply put, there are no universal applied legal standards for the practice. Enforcement in most cases is inconsistent from state to state, and even county to county.
For example,
in McIntosh County, Okla., south of Tulsa, issued about 1,500 debt-related arrest warrants, up from about 800 a year before the crisis, according to a court clerk. More than 950 borrowers got similar warrants in Salt Lake City courts last year. Maricopa County, Ariz., officials issued 260 debt-related warrants in 2010.
According to Spokane, Washington attorney Michael Kinkley, “(The) law enforcement system has unwittingly become a tool of the debt collectors.” Kinkley, who has represented arrested debtors, added that, “debt collectors are abusing the system and intimidating people and law enforcement is going along with it." And with no national statistics being kept on the number of debtors across the country who are arrested for this particular reason, the practice remains largely unnoticed outside of legal circles. One consumer advocate, deputy director Robert Hobbs of the National Consumer Law Center has even gone on record with his “suspicion” that “the debt collection industry does not want the world to know these arrests are happening because the practice would be widely condemned.”
There could be something to Hobbs’ suspicions. According The Wall Street Journal article from last year, J. Brandon Black, president and chief executive of Encore Capital Group, Inc., the country’s largest publicly traded debt-buying firm by revenue,
last year began requiring law firms handling its cases to follow a "code of conduct" that includes this sentence: "Under no circumstances should a firm cause a consumer to be taken into custody involuntarily."
According to the article, “the San Diego company decided to stop threatening borrowers with jail because the practice made Encore look bad.”
The recent profit spikes of the three top collection purchasing companies in the U.S., responsible for the initiating the majority of debt-related warrants
Other anecdotal evidence adds credence to Hobbs’ suspicions. Last year,
Vanderburgh County, Ind., Superior Court Judge Robert Pigman asked Indiana's highest court to review the legality of debt-related warrants after law-enforcement officials complained they can't quickly access arrest orders for dangerous criminals because their computer system is clogged with debt cases.
In other areas across the country, some judges are issuing fewer debt-related arrest warrants because law-enforcement officials concerns such cases detract resources from more relevant offenses, such as pursuing violent offenders.
So what’s it like to be pursued by both companies and law-enforcement for the relatively minor offense of owing debt? Consider the following cases from part of the Minneapolis Star Tribune series, “In Jail for Being in Debt.”
As a sheriff's deputy dumped the contents of Joy Uhlmeyer's purse into a sealed bag, she begged to know why she had just been arrested while driving home to Richfield after an Easter visit with her elderly mother.
No one had an answer. Uhlmeyer spent a sleepless night in a frigid Anoka County holding cell, her hands tucked under her armpits for warmth. Then, handcuffed in a squad car, she was taken to downtown Minneapolis for booking. Finally, after 16 hours in limbo, jail officials fingerprinted Uhlmeyer and explained her offense -- missing a court hearing over an unpaid debt. "They have no right to do this to me," said the 57-year-old patient care advocate, her voice as soft as a whisper. "Not for a stupid credit card."
As alluded to previously, the single biggest reason that collection companies/debt buyers are so successful in initiating these arrest warrants is because most debtors simply fail to appear in court during civil procedures—some 94% by one New York-based nonprofit’s estimates of residents in that area. That same nonprofit, found that some “71% of people sued were either not served with the required notice or served improperly,” and “of the suits brought by debt buyers, 35% were clearly meritless.”
So how can you—if you reside in a jurisdiction where such practices are a possibility—avoid being jailed for failure to pay off your personal debt? Here are some suggestions
Remember, bill collectors can legally seek warrants to arrest people who don't respond to legal action over debts.
• Carefully read documents from collectors. You may not recognize a creditor's name or the amount owed. Old debts often are sold to debt-buyer firms, which tack on interest and fees.
• If you get a summons and complaint, it means you are being sued and the case is going to court. A summons can be delivered by hand or by mail, and needn't be filed in court first.
• Respond promptly to a summons, admitting or denying the debt and disclosing requested information. Watch for court hearings. If you ignore such legal matters, the collector can win a judgment by default and seek a warrant for your arrest.
• Debtors have some rights even if they owe money. For example, Minnesota law prevents collectors from obtaining judgments after six years.
• If you want professional advice, but can't afford a lawyer, ask the court clerk about volunteer attorneys who answer questions about collection cases.
Sources: National Consumer Law Center, Federal Trade Commission
Other useful advice to protect yourself?
• If you are either served court papers or contacted by a collector by phone or in writing, you must show up in court (in the first instance) or answer by certified mail return receipt requested (in the second instance.)
• You have 2 basic defenses: Either you know the debt is not yours, in which case you ask them to prove otherwise; or if it is yours and it's past the statute of limitations, you tell them that it's no longer legally enforceable in your state.
For my very first posting on Beyond Dollar & Sense!, I thought that I would write about an issue that came to my attention late last year…one that I have a personal familiarity with.
Back in the early 1990s, I witnessed my mother stressing out as a local sheriff’s deputy back in Michigan arrived at her front door, threatening to take her to jail for failure to respond to a civil judgment levied against her. I also remembering her running around scrounging for every dollar she could get her hands on trying to avoid going to jail (for the first and only time) at the tender age of 50. I remembered thinking “Is this legal? There is no more debtors’ prison!”
Fast forward some 20 years later, to a new century, a new millennium…and the same reality of debt collection. Last year, The Wall Street Journal published an article last year entitled, “Welcome To Debtors’ Prison, 2011 Edition.” In the piece, the writer chronicled how, in some states, individuals who find themselves owing money on credit cards, automobile loans, or—in my mother’s case from the 90s—medical bills face the very real prospect of being jailed for debt payments. No, this isn’t the hyperbole of some anti-capitalist leftist…it’s a practice of reality.
Despite the fact that debtor’s prison in America—as a codified law—was outlawed by both the states and the federal government in the 1830’s, modern-day creditors in the form of “aggressive and centralized” collection agencies are taking advantage of existing laws by buying up unpaid debt, and leveraging the power of local courts to collect. And although a full third of U.S. states allow for the jailing of debtors who can’t (or won’t) pay their outstanding bills, six states in particular—Arizona, Arkansas, Illinois, Indiana, Minnesota, and Washington—are stand out as hotbeds of this practice. Before you start saying, “Good…people should pay their debts,” individuals in some of these cases are being jailed without having any idea that they were being sued to collect a debt (not that in these economic times, people are necessarily fixated on being sued for an outstanding bill…not when they are struggling to pay more immediate and more bills).
This does not mean that the practice is an arbitrary procedure. Arrest warrants are generally issued if a borrower defies a court order to repay a debt, or simply doesn't show up in court while a debt is being pursued by interested parties. And among the most frequent seekers of these warrants are retailers, credit-card issuers, landlords and debt collectors, according to court filings and interviews with judges and lawyers.
Driven by a bad economy, high consumer debt, and a growing collection industry that buys and aggressively pursues bad debts, collection agencies have been increasingly employing the use of warrants in order to leverage the power of local and state courts to jail debtors…all in an effort to increase profits. Though not every warrant in every case related to attempts to collect on personal debt results in an arrest and subsequent jailing, in jurisdictions where the state gives courts explicit sanction to do so, judges can (and do) jail individuals for periods up to and including “indefinite incarceration” for failure to pay as little as $100 in debt to a given company. Whether a debtor is locked up depends largely on where the person lives because simply put, there are no universal applied legal standards for the practice. Enforcement in most cases is inconsistent from state to state, and even county to county.
For example,
in McIntosh County, Okla., south of Tulsa, issued about 1,500 debt-related arrest warrants, up from about 800 a year before the crisis, according to a court clerk. More than 950 borrowers got similar warrants in Salt Lake City courts last year. Maricopa County, Ariz., officials issued 260 debt-related warrants in 2010.
According to Spokane, Washington attorney Michael Kinkley, “(The) law enforcement system has unwittingly become a tool of the debt collectors.” Kinkley, who has represented arrested debtors, added that, “debt collectors are abusing the system and intimidating people and law enforcement is going along with it." And with no national statistics being kept on the number of debtors across the country who are arrested for this particular reason, the practice remains largely unnoticed outside of legal circles. One consumer advocate, deputy director Robert Hobbs of the National Consumer Law Center has even gone on record with his “suspicion” that “the debt collection industry does not want the world to know these arrests are happening because the practice would be widely condemned.”
There could be something to Hobbs’ suspicions. According The Wall Street Journal article from last year, J. Brandon Black, president and chief executive of Encore Capital Group, Inc., the country’s largest publicly traded debt-buying firm by revenue,
last year began requiring law firms handling its cases to follow a "code of conduct" that includes this sentence: "Under no circumstances should a firm cause a consumer to be taken into custody involuntarily."
According to the article, “the San Diego company decided to stop threatening borrowers with jail because the practice made Encore look bad.”
The recent profit spikes of the three top collection purchasing companies in the U.S., responsible for the initiating the majority of debt-related warrants
Other anecdotal evidence adds credence to Hobbs’ suspicions. Last year,
Vanderburgh County, Ind., Superior Court Judge Robert Pigman asked Indiana's highest court to review the legality of debt-related warrants after law-enforcement officials complained they can't quickly access arrest orders for dangerous criminals because their computer system is clogged with debt cases.
In other areas across the country, some judges are issuing fewer debt-related arrest warrants because law-enforcement officials concerns such cases detract resources from more relevant offenses, such as pursuing violent offenders.
So what’s it like to be pursued by both companies and law-enforcement for the relatively minor offense of owing debt? Consider the following cases from part of the Minneapolis Star Tribune series, “In Jail for Being in Debt.”
As a sheriff's deputy dumped the contents of Joy Uhlmeyer's purse into a sealed bag, she begged to know why she had just been arrested while driving home to Richfield after an Easter visit with her elderly mother.
No one had an answer. Uhlmeyer spent a sleepless night in a frigid Anoka County holding cell, her hands tucked under her armpits for warmth. Then, handcuffed in a squad car, she was taken to downtown Minneapolis for booking. Finally, after 16 hours in limbo, jail officials fingerprinted Uhlmeyer and explained her offense -- missing a court hearing over an unpaid debt. "They have no right to do this to me," said the 57-year-old patient care advocate, her voice as soft as a whisper. "Not for a stupid credit card."
Uhlmeyer’s case is an extreme one, but other individuals have had as equally trying an experience as hers.
Deborah Poplawski was feeding a parking meter in downtown Minneapolis when city police pulled up, arrested her and took her off to jail. She was forced to change into jail-issue underwear and an orange uniform and sleep in a room with a dozen women, one of whom offered her drugs. She spent 25 hours in jail. ("Unpaid debt? You could go to jail")
As alluded to previously, the single biggest reason that collection companies/debt buyers are so successful in initiating these arrest warrants is because most debtors simply fail to appear in court during civil procedures—some 94% by one New York-based nonprofit’s estimates of residents in that area. That same nonprofit, found that some “71% of people sued were either not served with the required notice or served improperly,” and “of the suits brought by debt buyers, 35% were clearly meritless.”
So how can you—if you reside in a jurisdiction where such practices are a possibility—avoid being jailed for failure to pay off your personal debt? Here are some suggestions
Remember, bill collectors can legally seek warrants to arrest people who don't respond to legal action over debts.
• Carefully read documents from collectors. You may not recognize a creditor's name or the amount owed. Old debts often are sold to debt-buyer firms, which tack on interest and fees.
• If you get a summons and complaint, it means you are being sued and the case is going to court. A summons can be delivered by hand or by mail, and needn't be filed in court first.
• Respond promptly to a summons, admitting or denying the debt and disclosing requested information. Watch for court hearings. If you ignore such legal matters, the collector can win a judgment by default and seek a warrant for your arrest.
• Debtors have some rights even if they owe money. For example, Minnesota law prevents collectors from obtaining judgments after six years.
• If you want professional advice, but can't afford a lawyer, ask the court clerk about volunteer attorneys who answer questions about collection cases.
Sources: National Consumer Law Center, Federal Trade Commission
Other useful advice to protect yourself?
• If you are either served court papers or contacted by a collector by phone or in writing, you must show up in court (in the first instance) or answer by certified mail return receipt requested (in the second instance.)
• You have 2 basic defenses: Either you know the debt is not yours, in which case you ask them to prove otherwise; or if it is yours and it's past the statute of limitations, you tell them that it's no longer legally enforceable in your state.
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