News

It’s been awhile since I’ve issued a scam alert here on the blog, but I have one today.

You may have heard about a new government program called “Cash for Clunkers.”  Its technical name is the “Car Allowance Rebate System.”  The program is designed to offer an incentive for people driving old cars that aren’t fuel efficient to buy a new, more eco-friendly vehicle.

Like so many other programs out there, plenty of web sites have popped up that look official and claim to be the way to access this program.  Some of these sites say they are a place to pre-register for the program and then ask for personal information.  You can read more about it here.

There is only one official government site for the Car Allowance Rebate System.  That site is run by the National Highway Traffic Safety Administration (NSTSA).  The web address for that site is CARS.gov.

That CARS.gov site is the only web site you can rely on for the government-backed program.  Do not go to any other web site because it could be a scam.

Tips

We’re once again in the midst of tax season.  Here is some information for people who are filing their own taxes as well as what do with a refund or what to do if you owe Uncle Sam:

·        Pennsylvania residents can file their federal and state income taxes for free through

·        There are some common mistakes people make when filing their taxes. Make sure:

1)      To enter your Social Security number correctly.

2)      That your deduction totals are correct.

3)      That your withholding and estimated tax payments are on the correct lines.

4)      To sign and date your return.

·        Those who find themselves with a particularly large refund or shortage may want to adjust the number of allowances claimed for federal income tax withholding.

·        Remember that some employers do not deduct local wage taxes. If an employer does not deduct this tax, the employee is responsible for paying this tax to the municipality where he or she lives. Generally this tax is 1 percent, but it may be less in some municipalities.

·        People who receive a refund will have to decide what to do with that refund.  Advantage CCS recommends using a refund to pay down debts or put the money into savings. Whether the money should be used to pay down debts or go towards savings really depends on each individual’s circumstance. Those who would like advice about how to handle their refund can contact Advantage at (888) 511-2227, and a certified credit counselor will help them go over their budget and determine the most prudent way to use their refund.

I love a good deal as much as the next person. As a matter of fact, I pride myself on being able to find some of the best shopping deals out there. That being said, I don’t go near the stores on the day after Thanksgiving. As a matter of fact, I try to avoid the stores as much as possible during the holidays.

First of all, I get very claustrophobic in crowds. I get easily agitated when I’m trying to shop in a crowded store. Studies have shown that people spend more money when they are shopping in crowded stores and/or are in a hurry.

Tip: During the holidays try to shop during a week day when stores are less likely to be crowded. If you’re stressed you could make impulse purchases that cost you more than any savings on good sales.

Second of all, yes there are some great Black Friday deals, but most retailers offer good sales throughout the holiday season. My sanity is worth more than any amount of money I could potentially save.

Tip: Do lots of price comparisons before you head out to the stores, including price-checking reputable online retailers. Know exactly where you want to go and for what before you head out the door.

I think organization is key in terms of who you and buying gifts for and how much you plan to spend. I have always spent more money during holiday seasons where I didn’t make a plan and set a budget.

Tip: Make a list of every person you intend to buy a gift for and how much you plan to spend on each person. Before you hit the stores write down a few gift ideas for each person, so you have some direction once you get into the store.

Finally, it’s always easier to spend more if you’re using plastic versus cash.

Tip: Once you know how much you plan to spend put that amount of cash into an envelope and use that to do your shopping. Make sure to keep your cash in a secure location and never leave your purse or wallet unattended!

Debt Management

When you’re trying to work your way out of debt, it can sometime feel overwhelming.

I always viewed paying down debt and budgeting a bit like dieting. It’s really hard in the beginning. If you can stick with it, it gets easier and you can see progress. But, inevitably, at some point things level off and you feel like it’s a never ending task.

You start to get feel frustrated. You want to see more progress. You’re tired of “being good” and sticking to your diet. You long for a Burger King Whopper or a new pair of shoes.

That’s when a diet (be it a food diet or a debt diet) can really get derailed. That’s also the time not to give in to temptation and to keep moving forward toward your goal.

If you’re in the process of paying off debt, take a moment to look back and see how far you’ve really come. Remember your goal and why you’re on the path to that goal.

It’s also a good idea to look for inspiration. You’re certainly not alone when it comes to trying to become debt-free. There are many, many other people out there who are facing the same struggles and frustrations.

Check out this story about a freelance writer’s path to paying back $50,000 in debt if you’re looking for a little inspiration and encouragement.

Credit Counseling

Giving financial advice has become almost a celebrity business in the television world. There are plenty of financial experts who have achieved not only fame from offering advice about money and investing, they’ve pretty much gained a dedicated following of fans who cling to their every word.

Many of these famous financial experts (like Suze Orman and Dave Ramsey) offer good, solid advice. However, not all of that advice is a good idea for every person who watches them on television.

Liz Pulliam Weston recently wrote an article about why she doesn’t always agree with the advice Orman gives. The main point of the article was that Orman’s advice doesn’t make sense for everyone.

This is true of nearly anyone who is talking about personal finance to a very, very broad audience. It’s important to do your own research and get one-on-one help and advice from someone who understands your individual situation.

If you are facing unmanageable debt, a credit counseling session is a great place to start. A certified counselor will sit down with you and take a detailed look at all of your income and expenses. From there the counselor will help you create a budget and an action plan to reduce your debt.

If you have questions about investing, you should find a reputable financial planner to advise you. Don’t make the mistake of thinking that financial planners are only for the wealthy. They can be of great value to anyone with a 401k, an IRA or anyone who wants to start investing for the future, but isn’t sure how to start.

While celebrity financial advisors do offer up useful advice, it’s important to make sure that you glean the information that will be helpful to you and to learn to leave behind what won’t work for your situation.