News

We’d like to know what kinds of information the readers of Dollars & Sense would like to learn more about.

What questions do you have regarding debt, credit counseling, bankruptcy, and housing issues?  Do you have specific questions about managing your home budget?  Do you want to know more about shopping on a budget?

Please use the “Comments” section to ask questions or let us know what topics you would like us to write more about.  Your feedback is very important to us.

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

Some light has been shed on the mysteries of just how our credit scores are affected by different things.

Our credit scores are calculated using a long-secret formula created by FICO (Fair Isaac Company), which created and computes our scores. FICO has recently disclosed to MSN financial columnist Liz Pulliam Weston how certain things like late payments, a debt settlement, a foreclosure or a bankruptcy will really affect your credit score.

Liz asked FICO to calculate the hit your score would take for each of these scenarios for someone with a 680 credit score and someone with a 780 score. (A 780 score is considered an excellent score.)

I was very surprised to see that the person with the higher credit score is likely to take a much bigger hit for everything from the late payment to a bankruptcy. Of course, no two customers are alike, so the point deductions will vary, even between two people with a 780 credit score.

According to Liz’s article, the point system takes into account any calculation that you’re in over your head. Things like late payments and maxed out credit cards are considered indicators that you might be headed for financial trouble.

Take a look at the story by clicking here. You can see for yourself how negative credit information may affect your credit score.

The important thing to take away from this is that you do not want to make late payments or max out your credit card. And you certainly don’t want to lose your home to foreclosure or file for bankruptcy if there is a reasonable way to avoid it.

If you have a low credit score, it is important to work to raise it. And if you have a high credit score, you want to keep it high. Credit scores have become increasingly important if you need or want to borrow money, buy a car or purchase a home. Credit scores can also affect your ability to buy a cell phone or how much you’ll pay for insurance.

If you are unable to make your credit card payments on time, are struggling with debt or are facing foreclosure, get help immediately. You can contact the counselors at Advantage CCS for reliable help exploring your debt relief options.

Credit Counseling

I get lots of e-mails that seem suspicious.  Most of them are politically driven.  Some are in regards to my life/health/safety being in danger.  And some are financial scams.

Before I believe and/or forward any of these e-mails I always try to do a little fact checking to see if they’re really legitimate.  Most aren’t.  I’ve learned over the years that no attacker is playing a recording of a crying baby outside of my home to lure me out.  Starbucks has never refused to send coffee to our troops.  And a rich nobleman from Nigeria is not going to pay me boatloads of money to help him transfer some funds.

This morning I got an e-mail that caught my attention.  It was warning people to check their receipts when they leave a store.  The e-mail claimed that Wal-Mart cashiers were putting a “cash back” option on customers’ cards, the customers didn’t notice and the cashier pocketed the cash herself.  This sounded like it might be true, but I’m still a skeptic.

I went to Snopes, which is a great fact-checking resource for these types of things, and found that the claims in the e-mail are not legitimate.  It turns out only the customer can choose to receive cash back, and there is no way for a cashier to do this.  However, Snopes also says that many customers accidentally select the cash back option because they don’t pay attention and don’t realize they’ve asked for money back.

There are still some good lessons to be learned from this.  One is to pay close attention to what buttons you’re pushing as you check out.  There is always the possibility that you could ask for cash back, not realize and a dishonest clerk (at any store) could pocket the cash.  But you should also always check your receipts.  Cashiers are people, and they can make honest mistakes.  But you don’t want someone else’s mistake to cost you your hard-earned cash.