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Financial advice for the masses may not be right for you; Look for individual counseling and advice

May 14, 2009

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.

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Choose reliable help to get out of debt

February 9, 2009

If you are in debt, or you know someone who is, there’s a pretty good chance you are looking for some assistance and professional guidance.

Getting help to deal with your debt and get your budget under control is smart. What’s even smarter is making sure you know exactly who you are doing business with and that you are working with a reputable company.

Television and radio stations are flooded with advertisements from all types of debt relief companies. One industry in particular that is advertising heavily is the debt settlement industry.

It is good to remember the old advice of, “If it sounds too good to be true, it probably is.” Some of these companies make lofty promises, but how can you be sure the company will keep those promises?

Before choosing to work with a debt settlement company, or any debt relief agency, please take some time to do some research.  The tips below are good guidelines when it comes to working with a debt relief company.

 

Be wary of companies that:

·        Cold call or solicit a consumer out of the blue.

·        Charge high fees, especially if the fees are paid up front.

·        Ask consumers to sign over power of attorney.

·        Will not send free information about their services and fees.

·        Encourage consumers to sign up for a plan or program immediately without first sending the consumer the program’s details in writing.

·        Pay their employees based on commission.

·        Don’t offer financial education as part of their plan or program.

 

 When choosing a debt relief agency, consumers should look for a company that:

·        Is a non-profit organization and preferably a member of the National Foundation for Credit Counseling, such as Advantage Credit Counseling Service.

·        Is in good standing with the Better Business Bureau.

·        Is accredited.

·        Discloses information about the fees and details of their plan or program in writing before requiring a consumer to sign up for anything.

·        Offers a comprehensive financial education as part of their plan or program.

·        Adheres to any state or federal laws, including licensing requirements.

 

You can check a business out with the Better Business Bureau at www.bbb.org. There are also a number of consumer-oriented web sites that offer information about companies.

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Financial New Year’s Resolutions

December 31, 2008

Happy New Year!

It’s hard to believe that 2008 is over already. What a crazy year 2008 has been in many ways, not least of which in terms of the economy and people’s finances.

Advantage Credit Counseling Service celebrated its 40th year in business. And it turned out to be one of the busiest years the agency has had as we’ve continued our work to get people on the road to paying down their debt, managing their budgets and saving money for the future.

Many of us make New Year’s resolutions. But this year it’s really important for all of us to make more than just a resolution to do better with our finances. It’s important for us to make lifestyle changes when it comes to money. Consider it a financial diet.

Like any diet, it may be difficult in the beginning. It will get easier as you go along.

Here are the three ways to kick start your financial resolution for 2009:

·        Create a budget. If you already have a budget, review it and see what adjustments should be made.

·        Make a pledge to quit using credit. Operate on a cash only basis. If you charge something, pay it off as soon as the bill comes.

·        Build up your savings. Most experts recommend having an emergency savings equal to at least three months of your salary. That can be a daunting amount of money to save. Instead, try setting a savings goal that is within your reach and not so intimidating. Even if you can only put $10 a pay into a savings account, it’s a good start.

And remember, if you need help creating your budget and managing your debt, you can always call the certified counselors at Advantage CCS for help.

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Women need to take control of their finances

October 20, 2008

It’s time for women to buckle down and save up for retirement.

Recent studies show that women are very unprepared for retirement.

According to the Ninth Annual Transamerican Retirement Survey, single women estimate they need a median amount of $500,000 by the time they retire. Despite their estimates, one third of women reported they have saved less than $25,000 and only one in 10 women reported having saved more than $100,000.

What’s even more disturbing, the majority of these women arrived at these numbers based on a guesstimate and not actual calculations.

It is a fact that women outlive men. The prospects of having Social Security to fall back on are rapidly diminishing, especially for younger workers.

If you haven’t started to save for retirement, you should meet with a financial planner in your area and talk about what you can do to start building a nest egg.

If you’re concerned that you don’t have enough leftover income every month to set aside money for retirement, contact the certified counselors at Advantage CCS. They can go over your budget and help you to look for ways to scale back on your expenses so that you can pay down any debt you may have and possibly free up some money to put towards retirement savings.

Don’t let the turbulence in the Stock Market discourage you from saving money. If you’re nervous about investing, you can ask your financial planner to guide you towards low risk options.

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Dig yourself out of debt

September 2, 2008

On Wednesday I wrote about an article I read that basically said some people could be in debt forever, that it’s their destiny.

I disagreed that someone is destined to be in debt and promised to detail some ways to end the debt cycle.

I should start out by saying that I know how easy it is to get into debt, and I know how hard it can be to dig yourself out. I accumulated debt when I was younger. I struggled along, falling farther behind and barely treading water for a big part of my 20s before I decided it was time to really take action.

It’s always easier said than done, but I’m telling you that I know it can be done.

After deciding that you want to get out of debt and creating a goal, a good second step is to go through a comprehensive credit counseling session with a reputable, non-profit agency. Agencies like Advantage CCS offer this service at no cost; though it’s priceless to have a professional sit down and evaluate your finances, help you to create a budget and offer practical suggestions to help you pay down your debt.

The next step is to quit using credit. If you enroll in a Debt Management Plan, you are not supposed to use credit cards except in an emergency situation with permission from your credit counseling agency. Even if you don’t choose to use a DMP to reduce your debt, you should still quit using credit cards.

Cutting up the plastic and cutting it out of your life is a real challenge. But, the only way to pay off your debt is to stop creating more debt. If you don’t have the cash for something, you don’t buy it. Even though it’s really hard in the beginning, it does get easier. And as you start seeing your balances go down each month (instead of up like you might be used to seeing) you feel a real sense of accomplishment. You know you’re doing something good for yourself.

I think those are the most major steps and changes to ending a cycle of debt. If you take a look at this blog you can find lots of posts about money saving tips. Some reductions may seem small at first, but the small things add up and do help you in the end.

Do you have any advice about ending the cycle of debt? What were some ways you changed your spending habits?

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