(ARA) - Every woman should have a healthy relationship with money, but the reality is that many women still heavily rely on men to handle their finances. Now is the time for women to break out of the traditional role and take action to gain financial independence.

Personal finance expert Suze Orman shares advice on what every woman should carry in her purse, and the financial knowledge she should carry with her at all times.

Reading materials: Once a month, read a financial newspaper or magazine, such as the Wall Street Journal, Kiplinger’s or Smart Money. No need to read cover to cover, just flip through to get a feel for current financial trends. You might be surprised by what catches your eye.

Debit card: These days it often makes more sense to pay your bills with a debit card online - a service that should be free. If you’re worried about safety, don’t be. Banks spend a lot of money to ensure that their networks are secure. In fact, paying your bills online may prove to be safer than mailing a check because the electronic payment is automatic. All your transactions are recorded and can be verified 24/7, allowing you to track debits and credits at your convenience. Remember, organization equals control.

“Milk money”: Save a lot and indulge a little. Even in tough times, there will always be expenses that may be outside your budget. To cover these purchases, consider taking on a side job that can provide supplemental earnings opportunity. Direct selling opportunities, like Avon (www.avon.com), can provide additional income based on the amount of time you can commit. For as little as $10, you can get started with a company that works for women because you can choose when, where and how much you want to work, while having the flexibility to work a full-time job and care for your family.

Family photos:  Keeping your family close in view - whether in your wallet photo flipbook or on your phone - serves as a daily reminder of your loved ones and what you can impart to them. Admittedly, sensible financial management is not something we are all born with, it must be learned. Feel confident that you can contribute to your family’s financial success by educating your daughters and granddaughters about money and savings. Give them solid financial knowledge to stow in their purses for a lifetime.

For more action steps you can take in 2010, and information on Suze Orman’s Action Plan, visit www.suzeorman.com.

Courtesy of ARAcontent

(ARA) - Got a case of the financial jitters? You’re not alone. A recent survey of 1,000 American adults by Thrivent Financial for Lutherans and “Kiplinger’s Personal Finance” magazine found that most Americans are still struggling with or worried about their finances.

The Thrivent Financial/Kiplinger Survey of Family Finances revealed that half of all men and nearly two-thirds of all women said that “struggle” or “worry” best summarizes their financial situation today. It also found that the challenges most likely to cause worry included: having insufficient retirement funds (21 percent), losing one’s job (18 percent) and credit card debt (13 percent). Just 16 percent of all respondents said they didn’t worry about money.

Unfortunately, this financial unease has seeped into people’s relationships and emotions as well. Nearly half of respondents said their happiness has been affected by their finances. In addition, nearly three in 10 couples reported that recent economic challenges had caused tension in their relationship with their spouse or partner.

Fortunately, this anxiety can be conquered. Following are four simple steps to help you calm your financial angst.

1. Tend to the basics. This involves first identifying your financial goals, then determining the specific steps necessary to reach them. Understanding the flow of money into and out of your household, developing a realistic budget, and placing timeframes for your short- and long-term financial priorities are necessary for establishing your financial foundation.

“From a financial perspective, ‘flying blind’ is a proven source of financial anxiety,” says Patrick Egan, director, asset management, for Thrivent Financial. “Financially knowing where you’re at, where you want to be and how you plan to get there is not only reassuring but empowering. This will allow you to sleep better at night.”

Building a financial emergency fund and protecting one’s health, assets, income and life through appropriate protection solutions are also critical in building a sound financial foundation.

2. Don’t procrastinate. Waiting to get started on your financial goals can be a recipe for failure.

Whether building your retirement assets, enhancing your job skills or paying down your credit card debts, “getting started” can give you an emotional boost in addressing your financial worries.

“Start from where you’re at, not from where you ought to be or want to be,” says Egan. “By taking even a tiny first step you will find yourself a step closer to achieving your financial goals.”

3. Keep learning. In the increasingly complex world of finances, it is important to be a lifelong learner. Talk to people you trust - family, friends, neighbors and financial professionals - about their financial experiences and issues of concern. Financial information is also readily found in print and electronically.

Don’t feel obligated to act on the first advice you receive. Be convinced in your own mind that the course of action you are taking is reasonable. Make the best decision possible given the information you have. As far as possible, work with individuals who have a track record of integrity and who have your best interests at heart.

4. Share your financial heart with your spouse/partner. Finances are a family affair. Having a supportive partner working with you in addressing your financial challenges is a true asset.

“Make sure that you and your partner understand each other’s personal values around money,” says Egan. “Discuss your philosophy around spending, saving and sharing as well as how your work and career plans align with your financial vision. Make time to regularly discuss your finances, plans and goals. This may not eliminate all differences of opinion, but it should help ease many financial tensions and make for a stronger overall relationship.”

Financial challenges are ever present. These steps can go far in helping you stay calm in the face of these challenges and overcome the financial jitters. For more information, visit thrivent.com/moneysurvey or kiplinger.com/links/moneysurvey.

Courtesy of ARAcontent

(ARA) - A serious long-term illness or disability can have a devastating, often irreversible, affect on a family’s financial well-being. In fact, health care expenses are among the most common cause of bankruptcies, according to findings published in the “American Journal of Medicine” last year.

Most people are not financially prepared to have their employment interrupted, even briefly. For example, studies find more than 60 percent of workers live paycheck to paycheck. The U.S. Department of Commerce reports that the personal savings rate in March was just 2.7 percent of after-tax income.

So, what can you do to ease the financial risks if you are one of the millions who must stop working each year because of a serious health condition?

“First, have hope, because there are things you can do to take control,” says Paul Gada, personal finance director for the Allsup Disability Life Planning Center. Allsup is a nationwide provider of Social Security Disability Insurance (SSDI) representation and Medicare plan selection services.

According to Gada, seeking help is essential. “Many people are afraid and overwhelmed. Asking for help is a sign of strength and being your own best advocate can help you feel more in control.”

Among the first steps people with serious health conditions or their caregivers should take quickly are:

* Create a financial plan. The plan should focus on establishing a budget and making certain you are spending down your assets in the least harmful way. Generally, this means using your savings or other resources before withdrawing from retirement accounts that could trigger a penalty or using high interest-rate credit, which could have you paying off interest for years.

Unfortunately, approximately 15 percent of people awaiting SSDI report raiding their retirement savings. Additionally, 17 percent are relying on their credit cards and 7 percent on home equity lines of credit to meet financial needs until they receive their SSDI benefits, according to the Allsup Disability Finance online poll. The poll was conducted online this spring with 138 respondents.

* Contact your mortgage company or landlord. As part of this, identify housing assistance programs. For example, the U.S. Department of Housing and Urban Development (HUD) has programs to assist with mortgage modifications, as well as rental assistance that can lower housing costs drastically. However, there are waiting lists, so it’s important to sign up as soon as possible.

“People are often reluctant to reach out to their mortgage company or their landlord, they start missing payments, and the foreclosure or eviction process starts before they finally explain the situation,” says Gada. “By that time, it may be too late.”

* Seek assistance with utilities, food and other necessities. Conserve your resources by finding assistance to help you cope. Hundreds of federal, local and private resources are available in most communities. These can range from neighborhood food pantries to federally funded programs, such as Low Income Home Energy Assistance Program (LIHEAP). Local phone companies provide reduced-rate support for home phone service. Associations such as the American Cancer Society and the National Family Caregiver Association also offer guidance.

Many more people indicate they are considering assistance than are actually securing this assistance, according to an Allsup poll. They may not understand how to apply or they may not meet the income thresholds initially, but could later on as they spend down their assets.

“It can be overwhelming and people too often give up,” explains Gada, adding that Allsup offers links to many of these resources from its website.

* Secure health care coverage. Continuing medical treatment is vital. Among the options are COBRA through your former employer, a spouse’s plan or other private coverage, such as through the health insurance exchanges being established as part of the health care legislation enacted earlier this year. Compare plans closely to make sure you are getting the coverage needed and that you understand the costs. Additionally, if you must take expensive prescription drugs, check if the pharmaceutical company offers a prescription-drug assistance program.

* Pursue income sources, including SSDI. If you have paid into the Social Security Disability Insurance program, you may be eligible for benefits. If you are eligible, it’s essential to apply quickly as it can take up to two years or more to be approved. Gada advises seeking help with your SSDI application to speed the process. For example, people with disabilities represented by Allsup are significantly more likely to receive SSDI benefits at the initial level.

“It’s heartbreaking to hear of people with serious illnesses and disabilities unable to work and struggling month after month to pay for food or medical costs until they’re financially wiped out,” says Gada. “It shouldn’t be that way. There are steps people can take, but they need to ask for help and know how to get it.”

More information on financial assistance is available at www.Allsup.com or (800) 279-4357.

Courtesy of ARAcontent

(ARA) - There are new regulations going into effect this summer that could change the way your bank charges overdraft fees for debit card purchases. Are you ready? Officials hope the changes will help consumers avoid unexpected fees, but even after the new government rules go into effect on July 1, many banks will continue to charge a fee if you opt in to their overdraft service. It’s important to know how these changes might affect you and your money.

A recent Harris Poll survey reports that many consumers are lukewarm about overdraft services that allow them - for a fee - to make a purchase with a debit card or withdraw money at the ATM when they don’t have sufficient funds in their checking account. In response, some banks, like Bank of America, are going one step further than what regulations require and will eliminate overdraft fees for everyday debit card transactions by no longer authorizing those types of transactions if a customer does not have enough money in their account at the time. That means if customers don’t have enough money in their accounts at the time, their transactions will be declined and they won’t be charged an overdraft fee.

“Our customers have been clear that they want to know if a purchase is going to overdraw their account,” says David Owen, payments and products executive from Bank of America. “Our solution is simple, clear, and helps customers control their finances by reducing the possibility of over-extending themselves with a debit card.”

Do you think big overdraft fees are a fact of life when you need cash on the spot? Think again. Find out if your bank will link your checking account to another account, such as your savings account, credit card or line of credit. Bank of America says for customers enrolled in its overdraft protection program, the bank will automatically transfer available funds from a linked account to the checking account if and when they’re needed to cover an overdraft. When linked to a savings account the typical cost is $10 for each day it is used, no matter how often funds are needed. That’s a big difference compared to the $35 per purchase fee some banks will charge if you opt in to their overdraft service.

But what happens if you’re at the ATM and need cash? You won’t necessarily be declined if you don’t have enough money in your account. While many banks don’t offer this service at the ATM, starting this fall Bank of America will alert their customers when a withdrawal may overdraw the account at one of their ATMs. Customers may still get cash after they acknowledge and accept an overdraft fee.

In the past, consumers have worried that if they’re on the go, they’ll have to guess if their account balance is low. Today, many banks offer mobile money management tools that can help. Find out if your bank offers mobile banking, online banking, or text banking options so you can quickly check your account balances anywhere - in your office, at the airport, and even while traveling overseas. With a few clicks, you’ll know if you’re in danger of overdrawing your account. This is especially useful if you have several family members sharing a joint account. With some banks, mobile banking and online banking allow you to transfer funds so you can put money into your account before you overdraw it.

While you may or may not have paid an overdraft fee before, knowing what changes your bank is making will help you better manage your accounts and keep your finances under control. For more information about money management, savings, and planning for retirement, visit www.bankofamerica.com/solutions.

Courtesy of ARAcontent

(ARA) - Owing more on your mortgage than your house is worth may seem like a bad investment. But the alternative - choosing to default on your mortgage even if you can afford the monthly payments - will take a significant toll on your credit rating.

“Strategically defaulting - deciding to stop paying your mortgage regardless of your ability to actually carry the debt - will have a far-reaching, long-lasting impact on your ability to secure future credit,” says Maxine Sweet, vice president of public education for global information services company Experian, one of the three large credit reporting companies that receive and update consumer credit histories which are scored to help predict risk. “It’s by no means a move to be undertaken lightly.”

About 355,000 borrowers strategically defaulted in the first half of 2009, according to research conducted as part of the Experian-Oliver Wyman Market Intelligence Reports. Interestingly, Experian and Oliver Wyman found that the homeowners most likely to strategically default were also those with the highest credit scores.

While it may seem like a good move to simply stop paying and walk away from a bad investment, keep several factors in mind when you consider strategic default:

* It’s very final. Strategic default will lead to foreclosure by the lender. Foreclosure will negatively impact your credit report and scores. In fact, only bankruptcy will affect your scores more adversely than foreclosure.

For more information on just how severe the impact can be, VantageScore LLC recently completed a study that evaluates the effect that foreclosures, bankruptcies, short sales, and various mortgage programs have on consumers’ VantageScore credit scores.

* The default will remain on your credit report for seven years. Since credit scores are based on information in your credit report, the foreclosure will greatly impact your credit scores during those seven years. Securing other credit at reasonable terms and rates will be very difficult, if not impossible, during that time.

* Potential lenders aren’t the only ones looking at credit reports these days. Insurers, employers and even cell phone companies are considering the creditworthiness of those who want to do business with them. By impacting your credit report, a strategic default may affect your ability to get a job, secure insurance and enter into important service contracts.

* Fannie Mae, the government-controlled mortgage giant, announced on June 23 policy changes that will make you ineligible for a new Fannie-Mae-backed mortgage if you walk away from a current mortgage that you actually could afford to pay.  The ineligibility will last for seven years from the date of foreclosure.

* Finally, in some cases, the debt that foreclosure “erases” may be recorded as income, which means you will have to pay taxes on it.

“Strategic default may seem like ‘walking away’ from a bad debt, but it’s really anything but,” Sweet says. “While you will no longer have to pay the actual debt, you’ll almost certainly ‘pay’ in other ways, in the form of lowered credit scores and a drastically curtailed ability to secure future credit for the next seven years. Higher interest rates and unfavorable terms could end up costing you more in the long run than continuing to pay on an upside-down mortgage.”

To learn more about credit management, credit reports, credit scores and the factors that affect them, visit www.Experian.com.

Courtesy of ARAcontent

(ARA) - It’s that time of year - summer car-buying season is in full swing. Many dealers are offering great incentives to move cars off their lots to make room for the arrival of new models in the fall. Since buying a car is one of the biggest investments many of us make, it is important to be prepared so you can drive off the lot confident in the purchasing decision you’ve made.

Despite the economic hardships the auto industry has faced, financing a vehicle is still possible. Once you’ve researched reviews and valuations, and decided on the vehicle you want to buy, consider these four tips from Experian Automotive:

1. Check your credit score
Knowing where your credit history falls in the range of risk is more important now than ever before. Auto lenders use scoring models to help predict whether or not you could become delinquent on your auto loan payments. An auto lender typically receives a credit score that emphasizes your current and previous vehicle payment history. While they may use different credit scores for potential buyers than traditional lenders do, that simply means you shouldn’t focus on the number, but on your level of risk and what in your credit history most influenced that risk. Knowing where your credit history falls in the range of risk can help you anticipate the interest rates you may qualify for and the amount of the down payment you will need to make. Consequently, knowing where you stand may give you the leverage you need to negotiate for better rates. You can get your credit report and score at www.experian.com.

2. Know how much you can afford to spend on a down payment
It’s important to know how much you can afford to spend on a down payment before you go to the dealer and ask for the keys. If you are able to offer a solid down payment on a car, you will be in a better position to negotiate the final sale price of the vehicle as well as the terms of your loan. And the lower your credit score, the larger the down payment you may be required to make. Being aware of how much cash you have to put down on a car can empower you to secure an even better deal and it can also help you realize what type of car you can truly afford.

3. Research loan options on your own
It’s a good idea to get pre-qualified for an auto loan before visiting an auto dealer. Knowing what loan options you have may influence the dealer to beat an offer from your bank with a better interest rate and lower monthly payments. Before heading to the dealership, check with your bank or credit union to see what loan rates are available.

4. Request your vehicle history report
If you decide to buy a used car or truck, you should always have a licensed mechanic physically inspect the vehicle. You should also conduct your own inspection of the vehicle’s past by requesting a vehicle history report from your dealer or pulling a report yourself at AutoCheck.com.  The report will provide you with all reported events for that vehicle (odometer readings, vehicle registrations, title transfers, accident damage, emissions inspections) in addition to any issues with the vehicle’s title, any unexpected odometer readings, whether the vehicle was ever a rental or used as a service vehicle, and your AutoCheck score. This score is a tool that enables you to understand a vehicle’s past quickly and easily, compare it to other vehicles, and lower the risk of buying a vehicle with undetected problems.

Buying a car is an exciting time in everyone’s life, so before you rush out to the dealership, make sure you are properly prepared to get the most bang for your buck. Educating yourself on your financial standing as well as the current auto loan market and the history of the car you want to buy will help you drive off the lot with the knowledge that you made a sound investment.

Courtesy of ARAcontent

In this world today, prices seem to go higher every year. Saving money can sometimes be a hard job for many people. To help you save money, here are some pointers for you:

1. Determine the things that are important to you. Identify the items that you need, and the items that you want to have. Always remember that you should only buy things that are important and needed in your lifestyle.

2. Make sure that you spend your money only on basic needs like food, transportation, shelter, and clothing. These basic needs are worth spending for because these are important for your health and security. They are the things that you cannot live without and should be allotted in your budget.

3. Make a list of the things that you want to buy and be sure that the items you’re buying are good enough to sustain your basic needs. You have to be satisfied with the things that you have now, as long as it is still useful and can accommodate your needs.

4. You may avoid unwanted purchases by trying the item first before buying it. This is to make sure that the item is worthy enough to acquire. There are instances that you tend to buy things without even knowing its effectiveness and quality. You have to keep in mind that you always need to spend your money wisely on items that have quality and are according to your budget.

5. You may try to budget your money in advance. You can make a plan first before spending your money. There are instances that you spend your money without even thinking that it is not the right time to have it. Also, it is advisable to buy items at the end of the season, prices at this time of the year are low and cheap.

6. You may compare items on their prices. Do not limit your options to just one store only. You may find the best item that can be useful and affordable to you by window-shopping first rather than buying by impulse. Many stores out there carry the same items and can offer lower prices.

7. You can save more money in your household by conserving electricity. Be sure to turn off appliances that are not in use. You may compare your monthly electric bills regularly to check if you are maintaining your desired bill.

8. You can save on your transportation by traveling wisely. It is recommended that you make your itinerary to help you to not forget your destinations. Being organized will help you save money and time.

(ARA) - If you’re tired of getting nickeled and dimed by your bank, it’s time to switch. Irritation with unnecessary fees is the No. 1 reason consumers switch banks, according to a recent survey by Javelin Strategy and Research.

“Stopping useless fees forever is a smart way to make your money go further,” says J.J. Montanaro, a certified financial planner with USAA. “The savings can add up to hundreds of dollars a year, which can be used to pay your bills instead of your bank.”

To get a grip on what fees your bank is charging, Montanaro suggests carefully reviewing your most recent checking and savings account statement.

If you’re paying these five fees, it’s time to look for a bank that doesn’t charge them.

1. Overdraft fees
While the new overdraft rules  that went into effect on July 1 requires financial institutions to notify customers of their options to opt-in to overdraft fees, finding a bank that chooses to opt-out of the “opt-in” legislation can save you cash. Some banks - like USAA Federal Savings Bank - have eliminated overdraft fees on ATM and debit transactions entirely.

However, if you’ve decided to opt-in to overdraft fees, you’re not out of luck. Many banks provide overdraft protection - allowing purchases exceeding your account balance to be pulled from your savings account or put on your credit card. Check with your bank to see if this service is free. If so you’ll avoid overdrafts and avoid having your purchase declined.

If you choose a credit card as your back-up payment option, be sure to pay off your balance immediately to avoid paying interest, Montanaro adds.

2. ATM fees
If the ATM you use is not affiliated with your bank, that ATM’s bank may charge you for ATM/debit card withdrawals or other transactions. While a $1.50 to $3 ATM fees may seem nominal when you really need to access your cash, they can add up quickly.

Some banks allow you to use any ATM without charging fees. If your bank doesn’t, plan ahead and only withdraw money from ATMs affiliated with your bank. Or you could take advantage of fee-free, cash-back options now offered at some local grocery or convenience store chains when making a purchase.

Better yet, switch to a bank that reimburses you those fees. For example, USAA rebates up to $15 a month in ATM fees - a perk that could add up to $180 a year in savings.

3. Check fees
Cut fees by quitting checks, or at least using less of them. Unless your bank offers free checks, switch to paying bills electronically. This usually fee-free service allows you to pay bills anytime and anywhere you have access to a secure Internet connection.

4. Minimum balance fees
Your bank may expect you to keep a minimum balance in your account and charge you a fee if you slip below. You can side-step these fees by carefully matching your situation with the account requirements. For instance, look for an account that waives the fee for direct deposit of your paycheck, or find an account with no minimum balance requirement.

“In addition, take advantage of helpful tools such as free online financial management tools, account alerts sent via e-mail or text messages that are triggered when your account runs low,” Montanaro says.

5. Fine print fees
Are you charged a fee for monthly account maintenance, or does that bill you receive in the mail each month cost extra? “It pays to sweat the small stuff and fully understand what your bank is charging you,” Montanaro says. “Instead of paying your bank to send you a paper bill each month, see if you can sign up to receive it electronically for free. This option will save you money and can make it easier to keep track of your statements.”

Montanaro adds that investing time to manage banking needs and find a bank that doesn’t overwhelm you with fees can add up to real savings of potentially hundreds of dollars each year. “In times like these, it’s important to make every dollar count and ensure it’s working for you - not your bank.”

Courtesy of ARAcontent