Banks expect to send out 3.2 billion card offers this year…

How to negotiate the best deal on 6 common fees & expenses…

What is the danger of making minimum credit card payments…

Gift cards: For the person who has everything (or whose tastes you simply cannot fathom), gift cards are a safe bet. You can find cards on discount at www.giftcardgranny.com.  The site pulls prices from six gift card discounters, which buy unwanted cards from other people that they then resell for less than face value. Discounts can be as much as 50%, although most are in the 15%-to-20% range. And the rules for gift cards just became more consumer-friendly (see Gift Cards: A Better Deal Now).

Checking accounts: Banks everywhere are eliminating free checking accounts, but with a little creativity you can still avoid paying that extra $8 to $15 a month. If you arrange for direct deposit or maintain a minimum balance, or bank online and skip the paper statement each month, your bank is likely to waive the fee.  About 750 community banks and credit unions offer free checking accounts with no minimum-balance requirement. They’ll also pay as much as 3.5% interest if you use your debit card ten to 15 times a month, arrange for automatic payment or direct deposit each month, and receive your statement electronically.  www.checkingfinder.com.

Groceries: For many families, a bulging budget is the result of excess spending at the supermarket. Ditch the gourmet grocers and shop at Trader Joe’s or warehouse stores.  While you’re at it, use coupons, which you can find online (at CouponMom.com, Coupons.com and CouponCabin.com). Or, for $5.95 a month, you can get customized coupons from Shopping Nanny. Shopping Nanny recently guaranteed that if you spend more than $90 a week at the grocery store, you’ll save $40 a month using its service — or your next month’s membership is free.

Connectivity: Bundling your cable-TV, phone and Internet service can save you — dare we say it — a bundle. For example, you pay just $85 a month for 12 months if you sign up online with Verizon for unlimited local and long-distance calling, high-speed Internet service and DirecTV with DVR service. That saves $50 a month compared with buying the same services separately.

Cell-phone plans: Wireless carriers keep you tethered to them with two-year contracts and tempt you to renew with snazzy new phones or monthly discounts. But you can slash your costs with a prepaid plan, especially if you’re paying extra for text messaging and data plans.  All of the major carriers plus a number of smaller firms offer prepaid plans. Compare them at www.prepaidreviews.com/compare , then check the carrier’s Web site for more details. Before you compare plans, decide what is most important to you.

Related posts:

1. April 2011 NO MORE Mortgage Newsletter
2. January 2011 NO MORE Mortgage Newsletter
3. November 2010 NO MORE Mortgage Newsletter

If you can free up $33/month, you can usually take one or two months off your debt plan—this is found money!
If you have not taken the time recently to make a comparison of the cost of your insurance premiums with other companies, you are probably paying too much for your car and home insurance.  Let me tell you why.   About two and half years ago I went in to see my insurance agent with a quote from another company.

Immediately my insurance agent proposed a move to another company so we could beat the quote I had brought in.  It was amazing how quickly that happened upon me walking into his office. Just two weeks ago I got on the internet and asked for another broker to give me insurance comparisons from several companies.  After answering a few questions and visiting with Crystal on the phone I ended up saving over $100 on my home insurance per year and $300 on my two cars each year.   That gave me $33.00 extra per month to put into my emergency fund, or apply to my debt plan to eliminate all my debts faster than ever.  Your insurance score that the insurance companies receive from the credit bureaus is constantly changing, and in many cases it will allow you to get a lower premium on your insurance than you think is possible.

What is the difference between a credit score and an insurance score?   A credit risk score is a number, produced by evaluating information in your credit file at a credit reporting agency, which evaluates the likelihood that you’ll pay your bills on time. FICO® scores, the scores that most lenders use, are based on mathematical models built by FICO and are available from any of the major credit reporting agencies (Equifax, Experian, and TransUnion).

These are used by financial institutions and retail credit grantors for all kinds of decisions: whether or not you get a credit card, or what kind of an interest rate you qualify for on a mortgage loan, for example. A different kind of a score is used by most insurers to help evaluate the risk of insurance applicants and policyholders. This score, generically called a credit-based insurance score indicates whether you are more or less likely to have claims in the near future that will result in a loss for the insurer.

There are obvious similarities between your credit risk score and your insurance score: There are, however, important distinctions. The credit risk models are built to predict the likelihood of delinquency or non-payment of a credit obligation. The insurance risk models, by contrast, are built to predict the likely “loss ratio relativity” of any particular individual.  Loss ratio is the amount paid out by the insurance company in claims divided by the amount they collected in premiums. Loss ratio relativity measures whether the cost of your insurance claims is expected to be higher or lower than average. Insurance scores are not the only factor used to set pricing, nor can they be used to deny coverage to any consumer.  This score is most often just one factor of many in an insurer’s underwriting evaluation.  Because of my experience with Crystal I would recommend going to her website which is www.expressinsurance.net  or give her a call at 801-655-1823 for help.

A profile of the average American financial situation…

Americans have grown up with the saying “Keeping up with the Jones” and they have come to accept it. Americans want to have everything that their neighbors have, and if they don’t have the money to buy it, they put it on credit. They believe that they need to live the same type of lifestyle as those around them but that lifestyle can quickly spiral out of control. Americans and the government fail to live within their means. Instead of cutting back on expenses and saving some money for the future or even retirement, many live in the moment. And unfortunately, that’s difficult to come back from.

The combined amount of personal debt in the US is $2 trillion which is about the GDP of England. That means Americans are in debt more than a country earns in a year.  And that $2 trillion debt boils down to $117,951 per household.  The statistics don’t get much better from there. Even though Americans are a hard-working and industrious people they undertake too much debt and save too little. In the 1960s the average American saved 11 percent of their paycheck and in the 1990s it had decreased to 5 percent and then in 2003 it fell to 2.3 percent. However, because of the shaky economy, savings among Americans have recently risen and now comprise up to 5 percent of their disposable income.

But despite the savings, many are failing to save for retirement Medicare and Social Security are going bankrupt, so individuals can’t rely on those programs or the government when they retire or can no longer work. They need to save up their money and prepare for their future. Currently, only 18 percent of Americans are confident about having enough money for retirement. And only 60 percent of Americans are saving for their retirement. So what about all those that aren’t saving? Hopefully they have some children that will take care of them in their old age or some backup plan.

Finances are tricky especially in today’s world, but it’s important to cut costs where you can and get a savings plan. As prices continue to rise and incomes (well don’t) it’s important to keep debt to a minimum and look out for yourselves and your family.

Remember, you don’t have to have everything brand new and it takes time to accumulate things. When people get married today they think they need a house and everything in it.

In the past newly married couples would start out with furnishings they got from a family member, at a yard sale, or just do without. But today the expectations Americans have can sometimes get out of control.

Beware the Debt Monster!  Look at compound interest …

Look at how compound interest can work against you.  Credit card and mortgage companies understand this.  You must get out from under their grasp. Be afraid, be very afraid of your debt. It is growing this very moment without you charging another thing. “Why?” you ask… because of compounding interest!

In terms of debt, the simplest way to think of compounding interest is to think of paying interest on interest.  Each month, interest is added to the principal so that every month thereafter, you are charged interest on the interest that has accumulated up to that point, as well as the principal, until paid.  This may be contrasted to simple interest, where interest is not added to the principal.  Simple interest is rarely used and monthly compounded interest is standard on most loans and credit cards or lines of credit.

Example: Suppose you borrow $1,000 at a simple annual interest rate of 20%.  At the end of each year you would owe $200 in interest, plus the $1,000 in principal until paid.  Therefore, at the end of five years you will owe $2,000 ($1,000 in principal and $1,000 in interest) as follows:

Year    Principal    Interest    Balance
1    $1,000    $200    $1,200
2    $1,000    $200    $1,400
3    $1,000    $200    $1,600
4    $1,000    $200    $1,800
5    $1,000    $200    $2,000

However, if you borrow $1,000 at an interest rate of 20% compounded annually, then, assuming no payments, at the end of five years you will owe $2,488 (the original principal amount of $1,000 + $1,488 in total interest), a full $488 more:

Year    Principal    Interest    Balance
1    $1,000    $200    $1,200
2    $1,200    $240    $1,440
3    $1,440    $288    $1,728
4    $1,728    $346    $2,074
5    $2,074    $415    $2,488

Using the same examples over 10 years, at high interest rates, the amount owing can grow quite quickly.  At the end of ten years the compounded interest loan has grown to double that of the simple interest loan.  As credit cards are normally compounded on a monthly basis, interest can often be more than the original principal amount when only minimum payments are made.

What is the danger of making minimum credit card payments…

Let’s say you have $1,000 outstanding on a card at 20%.  Assuming no new purchases,
if you have a minimum payment of $25, what is your balance next month?

Well, the $1,000 accrues interest of $16.67, so if you pay $25, you reduced your principal by $8.33, and the new balance is $991.67.

In a year the math goes like this:  You pay $300, the credit card accrues interest of just about $200, and at the end of the year, you have reduced the balance by $100.

How good an investment is this?  You pay in $300 and you get credit for $100?
The answer is that it depends on which side of the equation you’re on.  The credit card company loves it.  You are hating life.

This is why the old saying is true:  “He who understands interest collects it, and he who does not understand interest, pays it”.

How can you beat this rap?  The only way is to pay a little bit extra.  If you could find $5/week to pay as extra principal on this debt, you’d have $20 new each month.  That would take your payment up to $45/month.

Now let’s re-do the math for a year.  This time you pay in $540, and the credit card accrues interest of about $200.  (Actually, it accrues less, because the principal balance is going down—the exact figure is just over $140).

So, in this example, you actually reduced your principal by $400!
Bottom line–you paid in $540 over the year, and you got credit for $400.  Things are looking a lot better, aren’t they?

And how hard was it to come up with $5/week?
That’s skipping one lunch out each week.  It’s skipping two coffees a week.  It’s skipping one soda each day.  It can be done.  Where there’s a will, there’s a way.

Related posts:

1. January 2011 NO MORE Mortgage Newsletter
2. November 2010 NO MORE Mortgage Newsletter
3. October 2010 NO MORE Mortgage Newsletter

50 INSPIRING QUOTES.  We know that sticking to a goal is hard.  Whether your goal is to get in shape, to lose weight, or to discipline yourself financially and live with your means, you need inspiration.  When times are tough, and hard decisions need to be made, goals that only speak to the head will not be sufficient.  The heart has to be involved.

Thus we hope that among this collection of words of wisdom, you will find something that speaks to your emotions.  Remember, the eyes give sight, but the heart gives insight.  Take a few seconds to ponder on each of these thoughts, and gain inspiration to stay with your goals, and make the right choice.  Remember, you can overcome!

“Think like a man of action, and act like a man of thought.” – Henri L. Bergson

“I am only one, but still I am one. I cannot do everything, but still I can do something. And
because I cannot do everything I will not refuse to do the something that I can do.”– Hellen Keller

“Half of the troubles we experience in this life can be traced to saying yes too quickly and not saying no soon enough.” – Josh Billings

“Even if you’re on the right track, you’ll get run over if you just sit there” – Will Rogers

“Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning.” - Mahatma Gandhi

“You can never cross the ocean unless you have the courage to lose sight of the shore.”- Christopher Columbus

“To a brave man, good and bad luck are like his left and right hand. He uses both.” – St Catherine of Siena

“When one door of happiness closes, another opens, but often we took so long at the closed door that we do not see the one that has been opened up for us” - Helen Keller

“We don’t see the things the way they are.
We see things the way WE are.” – Talmund

“Every problem has in it the seeds of its own solution. If you don’t have any problems, you don’t get any seeds.” - Norman Vincent Peale

“If you change the way you look at things, the things you look at change.” - Dr Wayne Dyer

“The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem.”
– Theodore Rubin

“Pessimist : A person who says that the letter “O” is the last letter of ZERO, instead of the first letter
in the word OPPORTUNITY.”- Anonymous

“Blessed are those who can give without remembering and take without forgetting”- Elizabeth Bibesco

“Yesterday is history, tomorrow is a mystery. And what about today? Today is a gift. That’s why we call it the present.” – B. Olatunji

“When you get to the end of the rope, tie a knot and hang on.”
– Franklin D Roosevelt

“Your attitude, not your aptitude, determines your altitude.”- Zig Ziglar

“If you’re going through hell, keep going.”- Winston Churchill

“The secret to success is to start from scratch and keep on scratching.”
– Dennis Green

KEEPING TO A GOAL IS A LOT EASIER IF YOU HAVE A PERSONAL ACCOUNTABILITY PARTER…

Here are a few suggestions to help you in making this choice.  The thinking is this:  when our performance is measured, it usually improves.  When our performance is measured and we are accountable for our results, then it usually improves again.

So you’re procrastinating. You’re rationalizing and making excuses. You’re reprioritizing your to-do lists constantly, meaning that one little task never makes it off the back burner.  Maybe you’ve even tried to make one particular job a priority. Perhaps you even started taking action, but somewhere along the way you let it drop by the wayside. It seems like weeks or months have gone by since you first got the idea and yet you never get it done.  Your heart tells you the time is NOW! If you’re serious about doing this project, then it’s time for you to get serious about holding yourself accountable. And the best way to do it is to bring in someone ELSE to hold you accountable.

You see, you can always avoid the task at hand if you’ve decided to hold yourself accountable. And while you think you’d feel guilty when you don’t complete the task, all you have to do is rationalize your guilt away. It was never that important anyway. Or, I can start working on it first thing on Monday instead.  But you can’t do that when you make a promise to someone else. You can’t rationalize and make excuses if your accountability partner stands firm and won’t let you get away with those weak excuses. And eventually, you WILL feel guilty if you’re not doing what you’re supposed to be doing. Here’s how to make the most of this productivity-boosting support system:

* Choose a partner who won’t let you get away with making excuses.  Ideally it will be someone who has overcome a similar bad habit, or has made good progress (farther than you have) towards achieving a new goal.  When it comes to finances, this is especially important.
* Share your long term financial dreams with your partner.  Let him/her see where you stand, where you want to go, and just exactly what it takes each week to get there.  He/she will feel a sacred trust in helping you to achieve this goal.
* Let your partner help you decide what you need to do each week (even every day, if you need feedback that often). That way your partner knows what you should be doing, and is walking your path alongside you.  You won’t be able to fib your way out of completing your task.
* It is better if your partner is NOT your spouse or someone who lives in your home.  We do better when we account to a third party.
* Have your partner call you at a certain time each day or week, asking about your progress.   Do not let him or her leave voice mail.
* Decide in advance about any rewards for reaching certain goals, and what approach you’ll take as a team when goals are missed.  Set these up before the event happens, so you simply follow a pre-set program, without reacting in the emotion of the moment.

If you find that you’re really having problems getting a job done, have your partner ask about your progress two, three or even four times per day that way you can report which bite size tasks you’ve crossed off your list.  This usually will work only for a few days, either when encountering a really difficult task, or when getting the ball rolling after a period of inactivity. Yes, it sounds deceptively simple. But when you know that your partner is going to ask you about your progress and make you feel guilty if you didn’t do what you’re supposed to do, you’ll get the task done. It’s simply less painful to do the task than face your partner’s wrath.

Related posts:

1. January 2011 NO MORE Mortgage Newsletter
2. February 2011 NO MORE Mortgage Newsletter
3. October 2010 NO MORE Mortgage Newsletter

1. Pay the Rent/Mortgage First: Regardless of your financial circumstances, you need a roof overhead, a place to call home, a sanctuary from the world at the end of the day. So, your housing comes off the top of your check.  If your check is not big enough, you may have to relocate or find a roommate. When applying for a loan, I was told the house payment or rent should not be more than 25% of the monthly income. Any amount above and beyond that percentage and you will surely be financially challenged.

2. Pay the Utilities Next: The roof over your head will be very uncomfortable, if you are freezing to death in the winter, or roasting to death in the summer. You need to keep up with your utilities. If you are ever required to pay late fees or reconnection charges, it will be extremely costly and put your finances further in the toilet.  If your utilities are too high, you must conserve. In the winter, turn the heat down a couple of degrees and wear a sweater, if necessary. In the summer, turn the air conditioning down to a bearable temperature. When you are not at home, keep the house about 10 degrees lower than when you are home. The same goes for nighttime. Crawl deeper under the covers and save.

3. Pay the Remaining Bills: Before you do anything else with your money, pay your creditors. You bought it, your pay a monthly fee for service, or you already used it, and you need to pay. If you do not pay your bills, the cost rises for the people that do, your credit will be ruined, and debt collectors will start to call.

4. Buying Groceries: You have met all your financial obligations, and you need to buy groceries. Now what? You already know you do not have enough to shop for your favorite food items. You need to shop sales, used coupons-even if they may be a pain to collect, buy generic, and cut back on your list.  For example, I love a good steak. However, I am on a hamburger budget. So, I buy hamburger. Sometimes, even when hamburger seems too expensive, I purchase eggs, beans, potatoes, and peanut butter. These are excellent sources of economical protein. What you buy at the store may not be your favorite items, or even your preferred brands, but you are doing the right thing to stay within your budget.

5. Say “No”: If staying within the budget is still impossible, you need to learn to say “no”, even to yourself. Personally, I like to watch television, when I have the time. However, if the privilege of cable keeps me from observing the first four budget constraints, it is bye-bye cable. I would much rather feed my kids than watch the news.  If you have more expenses than you have money, obviously something has to go. You may have to say “no” for many things you or your family want, but it is more important to budget for housing, utilities, absolutely necessary bills, and food.  Anything else is optional.

How to stay on a tight budget, and live within your means…

As a single mother of two growing children, I have a tight budget, even with child support payments. Just when I think I am getting ahead, somebody needs a new pair of glasses or a dental visit. Forget that my youngest is having growth spurts and needs a new wardrobe two or three times a year. With my oldest going to college soon, and still paying off my own student loans, I have tough money decisions to make.

Just like everyone else, I have to prioritize how I spend any income. First of all, the house payment, car payment, and student loan are automatically deducted from my account, so nothing is paid until that money is subtracted from the budget. Next, I pay the utilities. Since my first full-time job was working with the electric company for 10 years, and the fact that the family lives in cold country, I know letting those bills slide will only cost me more in the long run. Then, I am trying to pay off credit card debt, one teaspoon at a time. As you all know, paying the minimum is not an option, if a person ever hopes to get out of debt. So, I try to pay extra, and try to keep up with my debt plan software.

Finally, I can go to the grocery store. Now, I know many will say to go to the store first, feed the kids, and then worry about the bills. Some have even criticized me for doing the opposite. However, it works for us.  Since I have a fluctuating income, some months we have a Mac and cheese budget, and other months we can do better.  I will say this—my family has never gone hungry. We may not always get to eat our favorite foods, but my kids always get filled up.

I know I said “finally” about the grocery store, and some of you may be wondering why I put food after debts.  It’s because I believe food is where we can save the most money, and so it’s the most flexible. Others ask me about the entertainment piece of the pie. Well, going to the movies is a once or twice a year treat. We have a library of movies we can watch on the television. We play games on the computer or get out a deck of cards. Between school, work for my boys, and extracurricular activities, we are not really concerned about an entertainment allowance.  We have decided to set them aside for a higher goal, and as a family, we are all on the same page. I can say that I believe the battles we have fought, and the hard choices we have made, will stick with my sons for the rest of their lives.  I believe that as a Mom, I am teaching lifetime skills, and leaving a legacy that will bless my grandchildren.  This is a huge reward for me.

Ever had a “no-money weekend?…

Think about it—when do you spend the most, during the week or on the weekend?  For most people, it’s the weekend.  So, here are some fun ideas on how to combat the 2 favorite days for overspending.  Take it to heart and try it, even once/month, and what new things you can add to your life.

1. Check out the community calendar. Look at your town’s website (as well as those of cities and towns nearby) or stop by city hall to find a list of events going on in the community, many of which are free. You’ll often be surprised at how many interesting (and free) activities are going on right now in your area.

2. Visit your community library. Not only is a library a warehouse of books, most libraries also have extensive CD and DVD collections you can check out. Many libraries also have “story time” for young children, film nights, book clubs, and many other events that you may be unaware of – completely for free. Stop in and check out what they have to offer.

3. Get involved in community sports. Many towns have community sports fields where both youth and adult sports leagues and activities are regularly going on throughout the weekend. Stop by, watch a game or two, and if something intrigues you, look into joining either as a participant or as a volunteer.

4. Get your financial papers in order. This may not sound like a fun activity up front, but the peace of mind it gives you will make your life a lot more relaxing. Spend an hour or two organizing all of your statements and other financial documents. This is a perfect time to start your own filing system.

5. Check out some podcasts. Podcasts are wonderful things – top-notch audio programs available for you to listen to for free. Give some a sample – you can do it easily by using iTunes. Visit the Podcast section of the store and check a few out. My favorites include The Splendid Table (on food topics), Marketplace (on economics and business), Speaking of Faith (on religion), Fresh Air (interviews of general interest), This American Life (quirky general interest stuff), and This Week in Tech (technology news), among many others.

6. Play board games. We have a pile of board games, mostly received as gifts, that we often pull out and play, plus our closest friend has a few choice ones. Classic games like Monopoly and Pictionary can be great fun, but our favorites are Settlers of Catan, Cartagena, Puerto Rico, and especially Ticket to Ride. Just dig through the recesses of your closet, find an old board game you haven’t played in ages, and bust it open!

7. Bake a loaf of homemade bread. You probably have everything you need to make a loaf of bread in your kitchen right now (except for maybe the yeast). Anyone can do it, and the bread turns out deliciously. Here’s a detailed visual guide for making a simple loaf with minimal ingredients and complexity.

8. Learn how to juggle. All you really need is three balls and a video showing you how to do it. Not only is it a fun activity to learn, it’s something that’s fun to bust out as a party trick on occasion (trust me, you can always get people to smile if you juggle three fruits in the kitchen while preparing something).

9. Teach yourself how to change the oil in your car. If you’re due for an oil change, just bring the oil you need home with you and teach yourself how to do it. All you really need is an old pan to catch the wasted oil and a funnel to pour the old oil back into the canisters for later disposal. Just use your car manual as a guide for the procedure and you might just find that not only is it a lot easier than you thought, but it’s a useful skill to have and it’s cheaper than taking your car into Jiffy-Lube (or wherever you take your car for oil changes).

10. Meet your neighbors. Make an effort to introduce yourself to your neighbors if you don’t know them well. Invite any interesting ones over for a cup of coffee and a chat, just to get to know each other better. Your neighbors can not only become friends, but can also be a valuable resource – a friendly pair of eyes on your property when you’re away or a helpful set of hands when you’re trying to complete a challenging task.

11. Have a “cupboard potluck.” Go through your cupboards and find any items that might have slipped to the back over time. Invite some friends to do the same, then get together for a potluck dinner prepared from only these ingredients and whatever else you have on hand. It makes for a “free” meal and a lot of fun for everyone involved.

12. Clear out your media collection – books, DVDs, CDs, etc. Just go through what you’ve got, determine which ones you’d actually like to keep, and get rid of the rest. You can either sell them at a used media shop or swap them online using services like PaperBackSwap, SwapTree, and SwapADVD. In either case, you’ll get rid of stuff you don’t watch or read or listen to any more in exchange for either some money or new media to enjoy.

13. Make a 101 Goals in 1001 Days list – then start on some of them. A 101 Goals in 1001 Days list is a very effective way to codify all of the ideas of things you’d like to do all into one place, so that when you have spare time, you can just turn to the list and do what’s next on it. Spend some time thinking of things that belong on this list, then when it’s finished, you’ll have an excellent list of potential accomplishments and be ready to go with lots of activities.

Some Inspiring Thoughts on Financial Discipline…

Think about it—when do you spend the most, during the week or on the weekend?  For most people, it’s the weekend.  So, here are some fun ideas on how to combat the 2 favorite days for overspending.  Take it to heart and try it, even once/month, and what new things you can add to your life.

1. Check out the community calendar. Look at your town’s website (as well as those of cities and towns nearby) or stop by city hall to find a list of events going on in the community, many of which are free. You’ll often be surprised at how many interesting (and free) activities are going on right now in your area.

2. Visit your community library. Not only is a library a warehouse of books, most libraries also have extensive CD and DVD collections you can check out. Many libraries also have “story time” for young children, film nights, book clubs, and many other events that you may be unaware of – completely for free. Stop in and check out what they have to offer.

3. Get involved in community sports. Many towns have community sports fields where both youth and adult sports leagues and activities are regularly going on throughout the weekend. Stop by, watch a game or two, and if something intrigues you, look into joining either as a participant or as a volunteer.

4. Get your financial papers in order. This may not sound like a fun activity up front, but the peace of mind it gives you will make your life a lot more relaxing. Spend an hour or two organizing all of your statements and other financial documents. This is a perfect time to start your own filing system.

5. Check out some podcasts. Podcasts are wonderful things – top-notch audio programs available for you to listen to for free. Give some a sample – you can do it easily by using iTunes. Visit the Podcast section of the store and check a few out. My favorites include The Splendid Table (on food topics), Marketplace (on economics and business), Speaking of Faith (on religion), Fresh Air (interviews of general interest), This American Life (quirky general interest stuff), and This Week in Tech (technology news), among many others.

6. Play board games. We have a pile of board games, mostly received as gifts, that we often pull out and play, plus our closest friend has a few choice ones. Classic games like Monopoly and Pictionary can be great fun, but our favorites are Settlers of Catan, Cartagena, Puerto Rico, and especially Ticket to Ride. Just dig through the recesses of your closet, find an old board game you haven’t played in ages, and bust it open!

7. Bake a loaf of homemade bread. You probably have everything you need to make a loaf of bread in your kitchen right now (except for maybe the yeast). Anyone can do it, and the bread turns out deliciously. Here’s a detailed visual guide for making a simple loaf with minimal ingredients and complexity.

8. Learn how to juggle. All you really need is three balls and a video showing you how to do it. Not only is it a fun activity to learn, it’s something that’s fun to bust out as a party trick on occasion (trust me, you can always get people to smile if you juggle three fruits in the kitchen while preparing something).

9. Teach yourself how to change the oil in your car. If you’re due for an oil change, just bring the oil you need home with you and teach yourself how to do it. All you really need is an old pan to catch the wasted oil and a funnel to pour the old oil back into the canisters for later disposal. Just use your car manual as a guide for the procedure and you might just find that not only is it a lot easier than you thought, but it’s a useful skill to have and it’s cheaper than taking your car into Jiffy-Lube (or wherever you take your car for oil changes).

10. Meet your neighbors. Make an effort to introduce yourself to your neighbors if you don’t know them well. Invite any interesting ones over for a cup of coffee and a chat, just to get to know each other better. Your neighbors can not only become friends, but can also be a valuable resource – a friendly pair of eyes on your property when you’re away or a helpful set of hands when you’re trying to complete a challenging task.

11. Have a “cupboard potluck.” Go through your cupboards and find any items that might have slipped to the back over time. Invite some friends to do the same, then get together for a potluck dinner prepared from only these ingredients and whatever else you have on hand. It makes for a “free” meal and a lot of fun for everyone involved.

12. Clear out your media collection – books, DVDs, CDs, etc. Just go through what you’ve got, determine which ones you’d actually like to keep, and get rid of the rest. You can either sell them at a used media shop or swap them online using services like PaperBackSwap, SwapTree, and SwapADVD. In either case, you’ll get rid of stuff you don’t watch or read or listen to any more in exchange for either some money or new media to enjoy.

13. Make a 101 Goals in 1001 Days list – then start on some of them. A 101 Goals in 1001 Days list is a very effective way to codify all of the ideas of things you’d like to do all into one place, so that when you have spare time, you can just turn to the list and do what’s next on it. Spend some time thinking of things that belong on this list, then when it’s finished, you’ll have an excellent list of potential accomplishments and be ready to go with lots of activities.

Related posts:

1. January 2011 NO MORE Mortgage Newsletter
2. November 2010 NO MORE Mortgage Newsletter
3. December 2010 NO MORE Mortgage Newsletter

1. Keep all sales receipts and create notes to record payments made without receipts. Drop them into a coffee can or plastic jar or a space designated for receipts. Each time you get a paycheck (or once/month) add up your spending. Sort receipts and notes by expense category. Then regularly total amounts of what has been spent in a category to determine how much is needed in that category each week, or whether spending could or should be reduced.

2. Keep an account book by expense categories.

3. Use envelopes or folders for each category of expenses with an amount of money allocated for expenses for a set period of time, like a month. Record dollar amounts on the outside of the envelope or folder.

4. Pay all bills by check and keep running tallies of how much is left in the allocation for each category. This makes a record system in the checkbook. If it often seems that only particular categories of expenses are the problem, you could monitor only the categories that cause the problems.

5. “Sticky notes” can be posted on credit cards with a notation of the maximum amounts that can be charged on that card. Subtract amounts of expenditures added to the card as you make purchases.

6. An informal method used by some people is the checkbook balance, as a guide to patterns of expenses. If the balance drops below a particular amount, it is an alert to potential problems.

7. Use a budget partner for problems that seem to be spending addictions. Establish a household rule that the expense has to be verbally justified to the budget partner before any expenditure on those items can be made. The budget partner’s role is to ask questions to bring greater understanding of consequences of any expenditure rather than telling the person what to do.

8. Keep Log of “financial emergencies” to determine what they are, what triggers them, and then think of ways to avoid them.

9. Purchase inexpensive computer software designed for electronic record keeping. Be sure to back up your records frequently.

10. Carry a small notepad in your purse, car or pocket to jot down spending.

HOW TO LIVE WITHIN A BUDGET…

Controlling spending is one of the most important habits that a person must exercise in order to ensure not only future, but any kind of financial success. Sadly, today most people are convinced that they need much more to live on than they truly do.  The idea that we need more, in our never ending quest for happiness, drives us to make unplanned expenditures, and debt is the result.

The first thing that could be done to avoid overspending is to develop a budget. This budget should be put in writing, and strictly adhered to. It should be checked several times a week, in order to make sure that you are on track. There is something about having a written plan that makes it easier to consult as an authority than holding it in your head.  It also helps to work with a spouse, partner, or third party consultant that can serve as your “conscience”.

Most uncontrolled spending is the result of impulse buying and lack of planning. One must understand that retailers, restaurant owners, and other service providers are all aware of this. These companies actually count on emotional spending to keep their business profitable. Just because an item is on sale does not mean that it is a bargain, like the lady who started smoking while on holiday in Asia because the cigarettes were so much cheaper than in the US.  A bargain you don’t need is not a bargain at all.

Ask yourself, if what you already have will do the job properly or even well enough. If the answer is yes, then apart from the media induced lust for the newer, better shiny version, there is really no reason that you need to spend more on a new one. Often times people will buy the future, only to find than an item has become obsolete no sooner than it is bought, this is an unfortunate and unnecessary waste of money. As much as we all enjoy it, eating out is an added, unnecessary expense. Of course it is fine to treat yourself once in a while, but not every day. Bring a bagged lunch. Remember, this does not mean you have to eat a peanut butter and jelly sandwich for lunch every day. On the contrary, use last night’s left over dinner to create a spectacular and delicious lunch for the next day, which will so often be better for your health. Eat lunch at the office and then go for a walk. Your waist line and your check book will both thank you for it.

Turn off the lights, turn down the heat, and only purchase what you need today. Ask yourself “if I don’t pick up this item today, will I have to come back and get it tomorrow?” These are a few of the habits worth developing which help to control spending habits. Plus, if you have been previously undisciplined in using a credit card and chalked up plenty of debt, it may be time to locate the scissors and apply for a Pre-Paid Credit Card instead of the traditional “spend what you don’t have” type.

HAPPY CLIENT TESTIMONIALS…

Before I got married to my husband I was in a lot of debt. I had been on my own since I was 19 and had purchased things on my credit cards just to get by. When I got married my husband and I decided that we would both claim zero dependents on our W-4’s so that we could get a refund at the end of the year. When we get the refund each year we put it in an account that pays off something we may own on, like my new car payment (I had my old car for 10 years). This year we may put our tax refund toward helping to pay off our student loans. The best advice I can give is to live below your means, track every dime that goes out the door, and work together as a team.  It is too hard to do it alone.
_______________

My husband and I did not have much money saved up before the birth of our son 2 years ago. So, therefore, when I went on maternity leave, we racked up a lot of debt on our credit cards. Soon after, we refinanced our mortgage and used some of the equity to pay off the credit cards. However, not long after we refinanced, our credit cards were maxed out again and we both bought new vehicles both with $500 monthly payments. We were in a bind again, but I kinda had a wake up call in July 08.

I made a budget on an Excel spreadsheet and I decided to get our act together. We stopped our impulse buying and eating out. We started picking up side jobs and we sold unused and unneeded items on ebay and yardsales. I took up using coupons and watching sale ads for bargains. We tracked all of our spending and put all of our efforts into “fixing holes” and focused all our energy on one debt at a time. We had two of our credit cards paid off by the following December and we were able to pay for Christmas without using credit!! This year we have started a few savings accounts and we were able to remodel our bathroom and kitchen (on a tight budget & doing all the work ourselves, of course) with the money we have saved. I plan to have our two vehicles paid off in a year and a half by paying extra on them every month.
_________________

We are getting so close to being debt free (excluding our mortgage). We used our tax refund this year to pay of our line of credit and haven’t used it since! We just this month paid our credit card balance off in full. I’m so excited to get my bill next month and to see it say, “amount owed….$0”.  Whoo hoo! I haven’t had a zero balance on my credit card since I was 16 years old. Just to imagine the interest that I have paid makes me ill. I will never charge more than I can pay off at the end of the month again!  Big lesson learned. Now all the money that I was paying on those two bills are going toward finishing off our car payments. They should be gone by spring. So next years tax money won’t have to be earmarked toward paying off our bills. I can’t even imagine what that will feel like.

How did we do it?  We stopped looking at ads because we realized they were making us spend.  We worked together as a team.  We stopped eating out.  We tried to spend a month “on paper” before it actually started.  If our spending came in under our estimate, we rewarded ourselves with a treat (and we even budgeted for that).

I’m really excited (you probably couldn’t tell….lol).
______________

Before we were introduced to the principles you’re teaching, we didn’t think that our financial situation was that bad.  We had a little bit of credit card debt (from lack of an emergency fund), a car loan, and student loans.  No big deal right?  Until you add it up and realize that you have $23,000 of debt on a $39,000 yearly salary.  So we went crazy and paid it off… in 26 months.  Yes, that’s nearly $1000/month that totally went to extra principal.  How did we do it?

We decided that this was going to be our mission, and that we would not rest until it was done.  We estimated it would take us 3 years, but we did it in less.  It got to be a total passion of ours.  We figured there was no better way for us to invest than in becoming debt-free, so we even stopped retirement contributions to focus everything we had on the debt.

I can say that there is more than an economic benefit to being done with debt.  It just plan feels so good!

We got on a budget, and then my husband took on (a lot of) extra work while I kept things going on the home front. I am amazed and shocked that we could do it so fast!  It took a lot of sacrifice and doing without, but we rewarded ourselves when the credit card was paid, when the car was paid, and when the each of the 3 student loans came off.  I want to encourage others to keep it up and kick debt out for good! Now on to the emergency fund!

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Hope you enjoyed the 2011 January No More Mortgage Newsletter.

Related posts:

1. November 2010 NO MORE Mortgage Newsletter
2. NO MORE Mortgage: Budgeting Tips for New Budgeters
3. Customer Reviews

Your credit score is an important number…

1. Paying late: Thirty-five percent of your credit score is your payment history. Consistently being late on your credit card payments will hurt your credit score. Pay your credit card bills on time to preserve your credit score.

2. Having a balance charged off: When creditors think you’re not going to pay your credit card bills at all, they charge off your account. This account status is one of the worst things for your credit score.

3. Having an account sent to collections: Creditors often use third-party debt collectors to try to collect payment from you. Creditors might send your account to collections before or after charging it off. A collection status shows that the creditor gave up trying to get payment from you and hired someone else to do it.

4. Defaulting on a loan: Loan defaults are similar to credit card charge-offs.  Defaults show you have not fulfilled your end of the contract.

5. Having your home foreclosed: Getting behind on your mortgage payments will lead your lender to foreclose on your home. In turn, the late payments will hurt your credit score and make it harder to get approved for future mortgage loans.  Late mortgage payments are worse than late credit card payments.

6. Getting a judgment: A judgment shows you not only avoided your bills, the court had to get involved to make you pay the debt. While they both hurt your credit score, a paid judgment is better than an unpaid one.

7. High credit card balances: The second most important part of your credit score is level of debt, measured by credit utilization.  Having high credit card balances (relative to your credit limit) increases credit utilization and decreases credit score.  A maxed out card is the worst.

8.  Closing credit cards that still have balances: When you close a credit card that still has a balance, your available credit drops to $0 but your balance remains. This makes it look like you’ve maxed out your credit card, causing your score to drop.

9. Closing old credit cards, especially those with available credit: Another component of your credit score, 15%, is length of credit history – longer credit histories are better. Closing old credit cards, especially old cards, makes your credit history seem shorter. Also if you have several credit cards some with balances and some without, closing those credit cards without balances increases credit utilization.

10.  Applying for several credit cards or loans: Credit inquiries account for 10% of your credit score. Making several credit or loan applications within a short period of time will cause your credit score to drop. Keep applications to a minimum.

11. Having only credit cards or only loans: Mix of credit is 10% of your score. When you have only one type of credit account, either loans or credit cards, your credit score could be affected. This factor mostly comes into play when you don’t have much other credit information in your credit history.

NO MORE Mortgage Tax Update

IRS STOPS MAILING OUT FORMS…

The Internal Revenue Service says it will no longer mail out tax packages with forms and instructions for filing a paper return. The change comes as an increasing number of taxpayers are filing their returns electronically. In early October, taxpayers who filed paper returns last year should have gotten a postcard from the IRS with instructions on where and how to get the forms needed for filing 2010 returns. In short, the forms will be available in January from the IRS website or at select libraries and post offices.

The IRS says people who file electronically can get refunds deposited directly into their bank accounts in as little as 10 days. Otherwise it can take up to six weeks to get a refund check in the mail.

The IRS says the move will reduce mailing costs. But the change also reflects changing habits; the majority of individual filers now file electronically. Just 8 percent of individual taxpayers got paper forms and instructions in the mail last year. The rest either filed electronically or used a paid tax preparer or software. Taxpayers can file returns electronically for free on the IRS website, www.irs.gov . The agency also gives free electronic filing help to those who earn $58,000 or less through a program that walks taxpayers through their returns by asking a series of questions about income, expenses and other financial transactions.

Signs You’re Headed Toward Accumulating Credit Card Debt…

How do you know if you’re using your cards unwisely? NO MORE Mortgage presents some ways to tell you’re on the path that will create more and more credit card debt. Here are 10 signs that you are headed toward accumulating credit card debt from NO MORE Mortgage.

1. You use credit to meet basic needs: Your income should be used to buy everyday items like food, clothing, and gas. Having to use credit cards to cover these types of purchases is a big sign of financial trouble.
2. You transfer balances to avoid credit card payments: There are times when a credit card balance transfer makes sense, like to consolidate credit card balances or to get a lower interest rate. However, frequently transferring balances instead of making credit card payments is a red flag.  The fees to make these transfers are often higher than the monthly payment you might be trying to avoid.
3. You skip one credit card bill to pay another: Prioritizing credit card payments is wise. But skipping payments is always unwise. If you consistently find yourself too strapped for cash to make your credit card payments, you are already in credit card trouble.
4. You avoid or ignore credit card statements: If only wishing away credit cards actually made them go away. Pretending your credit card debt doesn’t exist only gives it time to grow. Facing credit card debt sooner gives you the opportunity to tackle debt before it gets out of control.
5. You charge more than you pay: Imagine trying to fill a hole while someone shoveled out more dirt than you put in. Your hole would never get filled would it? It’s the same with debt. If you’re charging more than you’re paying, your credit card debt will always continue to increase.
6. You don’t have an emergency fund: If you don’t have an emergency fund, you’ll feel forced to use your credit card for every little item that is out of the ordinary. Credit card debt created because of  unexpected expenses can be hard to pay off, especially if your budget is already stretched.
7. You don’t have a plan to pay off your credit card debt: You know what they say, “Failing to plan is planning to fail.” If you’re not actively working to pay off your credit card balances, you could end up unnecessarily paying on the cards for years to come. Whether you have excessive credit card debt or not, you should always have a plan to pay off your balances.
8. You use credit to “afford” expensive items: The allure of credit is that it tricks us into thinking we can afford to buy more than we really can. Truth is, only extra income or lower expenses (or both) enables you to afford more expensive items. Incurring credit card debt to maintain a lifestyle you really can’t afford isn’t a losers game.
9. You have past due accounts: If you have credit cards that are currently past due, you’ve probably run into unfortunate financial trouble that’s keeping your from making payments. Remember, the more in arrears your accounts become, the harder it will be to bring them current again. Take a look at your monthly budget for money you could find to get your credit accounts back on track.
10. You have maxed out credit cards: If your credit cards are all maxed out, you’re not headed for credit card debt, you’re already in deep. What now?  Make a decision to pay off your credit card debt or take more severe steps to get rid of them, even if it hurts your credit.  You must learn to make wiser choices about credit card use in the future.

STRETCHING YOUR BUDGET PAST AGE 55…

Of the 14.9 million unemployed, more than 2.2 million are 55 or older, according to the U.S. Labor Department. And almost half of those have been unemployed six months or longer. The unemployment rate in that age group is a record high 7.3%.  NO MORE Mortgage shares how you can make every dollar count.

1. Retirement Accounts: If you have no choice but to dig into your retirement account, there are ways to minimize the tax hit and penalties.  Most people know that if you withdraw money from an individual retirement account or 401(k) before age 59 ½, you’ll pay federal income taxes on the withdrawals AND you will get hit with a 10% penalty. But the tax code has a provision, 72(t), that allows someone younger than 59 1/2 to withdraw a set amount of money at least five times until age 59 1/2 or for five years, whichever is longer. You won’t pay a penalty, but the money is still taxed. The caveat: Once you start taking out the money, you’re locked into making withdrawals, says Jerod Wurm, a certified financial planner in Sacramento. Jonathan Pond, a financial adviser for AARP, says that if you were laid off this year, you might want to delay tapping your retirement money until next year, when you might be in a lower tax bracket. If you need a chunk of money for a short period of time, consider the 60-day rollover requirement. This rule allows you to take money out of a qualifying retirement account, tax- and penalty-free, once a year, regardless of your age — but the full amount must be deposited back into the account within 60 days.
2. Health Insurance: Most states have programs that offer low-cost coverage, typically if one earns less than $30,000 a year. The MassHealth program in Massachusetts, for example, covers adults and children under age 19 if they live with the parents. Short-term insurance policies, which typically cover unexpected illnesses and accidents, can run as low as $30 per person for a month. Catastrophic insurance typically starts as low as $30 a month depending on a person’s age and health. Have you been denied coverage or been quoted an exorbitant rate because of a pre-existing condition? You can enroll in the federal Pre-existing Condition Insurance Plan, a part of the new health-care law. Premiums range from $320 to $570 a month per person depending on the state.
3. Real Estate: The typical advice is to downsize to a cheaper home in a cheaper locale. But today’s real-estate market is anything but typical. And for people who are hunting for work or have a spouse with a much-needed job, moving to a state with a lower cost of living may not be feasible. So use your home to make some extra cash. If you live near a college or university, for instance, rent an extra room to a student or recent graduate. You can easily get a few hundred dollars a month. Contact a school’s student-housing department or put up fliers on campus. For homeowners who are 62 and over and still have equity, another option is a reverse mortgage, which allows older homeowners to tap their home’s equity while they remain in the house. The loan typically doesn’t come due until the homeowner sells the house or dies. And upfront fees have come down some recently.
4. College Expenses: Still on the hook for college tuition for your kids or yourself? Try renegotiating loan and aid terms. Jerome Chester, a 51-year-old from Bethesda, Md., who has been unemployed since June, went to student-loan provider Sallie Mae to renegotiate his tuition loan. He was able to defer payments, about $1,000 a month, for six months. And a school’s aid package isn’t always set in stone. Go back to the school and ask for more aid given your financial troubles. Results will vary by school and a family’s financial status.

NO MORE Mortgage helps with homeowners insurance

EXPERIENCED AN INCREASE IN YOUR MORTGAGE PAYMENT?…

Homeowner’s insurance rates have been increasing in almost every state, which has caused many NO MORE Mortgage clients to see an increase in their mortgage payment because their escrow amount increases.  This overall increase in homeowner insurance rates is caused by a variety of factors, but it appears that this trend is not going to reverse in the near future. We have asked Heritage Insurance, Inc. to work with NO MORE Mortgage customers that would like to reduce their homeowner’s insurance premium.  They will not be able to save every customer on their homeowner’s policy, but it appears that the vast majority will be able to realize some savings, and some could see very significant savings.

For those of you that are interested, Heritage will review your current policy and then offer quotes from other insurance companies.  This is a free service.  They are a national broker that sells for 127 different insurance companies.  Some of these companies are large nationwide companies (Traveler’s, Safeco, The Hartford, Progressive, etc.) and some are smaller, regional companies.  This review will allow you to see a variety of prices and determine if you can reduce your insurance premium by switching to another carrier.

For those of you that are interested in trying this service using the resources of Heritage, we have pasted a link to The Better Business Bureau’s report on their company at http://www.bbb.org/louisville/business-reviews/insurance-services/heritage-insurance-service-inc-in-louisville-ky-3067. They have been an accredited BBB business since 1979.

Call now to receive your policy review at 888-782-1391, or you may send an email to chris.oneill@nomoremortgage.com.  There is no cost or obligation.  The analysis can be sent to you via email, and no salesman will call.  NO MORE Mortgage has a strict privacy policy that prevents us from giving our client information to any third party.  This is a free service available only to NO MORE Mortgage customers.

Related posts:

1. October 2010 NO MORE Mortgage Newsletter
2. Right Way to Break Up With Your Credit Card
3. How Credit Cards are Stealing from the Poor to Feed the Rich

NO MORE Mortgage is asked from time to time about debt settlement companies.  While we do not negotiate with creditors or hold client funds in our custody, we can recommend a reputable third-party firm to help those of you in financial crisis.

You can always call your NO MORE Mortgage Plan Coordinator for a review of your financial options. We can discuss the pros and cons of debt settlement vs. NO MORE Mortgage, along with Consumer Credit Counseling and Bankruptcy, to help you honestly evaluate your choices. Learn how NO MORE Mortgage is different from debt settlement here.

Having a trusted 3rd party counselor in a tumultuous time like this can be lifesaver.  NO MORE Mortgage is happy to help.  Please read the article below that summarizes the industry.  A second post will discuss the risks and the consequences of choosing debt settlement.

If you’re drowning in unpaid bills and desperately looking for a way out, chances are you’ve come across an offer that sounds something like this: For a fee, a professional debt-settlement company will help eliminate your debt for as little as half the amount you owe.

Does this sound like a scam? Or are you finally getting the break you deserve? The answer may surprise you. Debt settlement is, in fact, a perfectly legal solution for consumers who are in deep and seeking an alternative to bankruptcy. But having a debt-settlement company do the legwork for you can be risky and expensive.

The Basics on Debt Settlement vs. NO MORE Mortgage

If you are falling further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all.

For an agreed-upon one-time fee, usually between 10% and 60% of what you owe, your creditor eventually forgives the rest of your debt and starts reporting the account to the credit bureaus as settled, or paid as agreed. On your credit report, the balances of settled debts will show $0. However, any previous history of delinquent payments or charge-offs will remain for all to see.

In order to get your creditors to do this, you’ll need to start putting money aside toward the settlement, and you do this by stopping payments to your creditors.

Not surprisingly, creditors don’t like to advertise debt settlement. They also make it an extremely difficult solution to pursue. As a rule, creditors won’t negotiate with consumers who are current on their bills, usually refusing to discuss settlements unless you’re at least three to six months behind. That means you will have to dodge collection calls while trying to save up the cash for a settlement.  This is one of the little known downsides to the whole process.

If you’re working with several creditors — you’d typically tackle the debts one at a time as you collect the money to pay them off, but it’s hard, if not impossible to know which creditor might fall out of line and attempt to sue you, or which one will be willing to settle first. In the experience of NO MORE Mortgage, clients who have hired debt settlement companies do not really do much better than if they had done the negotiations themselves.  What they are buying when they hire a third party to represent them is avoidance of the stress of negotiating.

Once you sign up with a company, chances are you’ll pay dearly for its services. Again, in the experience of NO MORE Mortgage, these fees are all over the place.

Some companies charge a percentage of the total debt — typically 15% to 20% — that’s paid before you start accumulating savings. Others charge a percentage of the debt savings — usually 25% — once you settle, plus an initial sign-up fee and monthly service charges. Then there are those that charge a flat monthly fee throughout the length of the program.

(read more on this subject, including the downside of debt settlement, and our NO MORE Mortgage commentary on the consequences and experiences that our clients have had when they have chosen this solution.  In our opinion, it’s all of the bad, and none of the good)

Learn how NO MORE Mortgage is different from debt settlement here.

Will the NO MORE Mortgage Financial Plan work for me?

To find out if you qualify today!

Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! NO MORE Mortgage Representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest!

Related posts:

1. NO MORE Mortgage Plan vs. Debt Settlement
2. NO MORE Mortgage: What You Should Know about Consumer Credit Counseling
3. Do you really know how much you owe on your debt?

NO MORE Mortgage specializes in assisting clients who are able to meet their monthly debt obligations.

Sometimes when financial reversals hit, or spending has simply gotten out of control, we are forced to admit that our financial inflow is not equal to our outflow.  We are simply spending more than we earn.

If this trend is not stopped, and credit cards are maxed out, and there is nowhere else to borrow money, the ultimate consequence is that our finances “hit the wall,” and we simply run out of cash.  We are insolvent.

If you are reaching a “breaking point” similar to the one described above then NO MORE Mortgage may not be the answer for you. There are, however, three main solutions that can be considered.  One is bankruptcy.  Another is Debt Settlement.  A third is consumer credit counseling.

NO MORE Mortgage is not a credit counseling firm.  There is a big difference between NO MORE Mortgage and the other debt elimination categories described above.

• NO MORE Mortgage does not handle client funds.
• NO MORE Mortgage does not negotiate with creditors to lower balances, interest rates, or monthly payments.

If you are considering credit counseling be sure to spend some time researching your options before signing up with an agency that you do not know much about.  Most people are not familiar with their options and the programs available, and when money is tight, emotions are usually running high, and it’s easy to make a bad decision.

There are many credit counseling agencies to choose from.  Knowing what to look for is key to your success.  Reputable agencies will provide you information upfront about their company without you having to provide any of your own personal identifying information.

Your task in choosing the right agency is to be sure that you do your homework. NO MORE Mortgage can help you make the right decision.  Here are our recommendations:

• You should interview at least two agencies.
• After you receive your initial consultation, you should contact the Better Business Bureau or your State Attorney General to see if there have been any unresolved complaints on the agency.
• Be sure the agency is charging you reasonable fees (not more than $50/month for a debt management plan).
• The credit counseling agency should be non-profit.
• The agency should have been in business for at least five years.
• The counselors at the credit counseling agency should be certified by an independent organization.
• The agency should be accredited.  The two major evaluators are the International Standards Organization (ISO) or by the Council on Accreditation (COA).
• The agency should be a member of one of the trade associations: either Association of Independent Consumer Credit Counseling Agencies (AICCCA) or the National Foundation for Credit Counseling (NFCC).
• The agency you are considering should be licensed and bonded to do business in your state.  This is an absolute requirement for your protection.
• The agency should be willing to waive or lower fees if you simply can’t afford them.
• The agency should spend a reasonable amount of time for your initial consultation. At least an hour is needed.
• The agency should provide you with a written budget based on your personal financial situation.

One of the most important points is to be sure that the agency offers free education to help you learn how to manage your finances. They should also provide you free ongoing education while on the debt management program, or even if you decide that the program is not right for you.

If an agency is not willing to answer your questions or you feel that the answers are not satisfactory, call someone else. NO MORE Mortgage can help by referring you to honest and effective agencies that we have dealt with for many years.  We get no referral fee or kickback for this service.

We know that when we get you to the right people to help you through your financial crisis, that you are likely to return to NO MORE Mortgage for help with eliminating the rest of your debt, including your mortgage.

Related posts:

1. Overcoming the Urge to Splurge with NO MORE Mortgage
2. 5 Evil Things Credit Card Companies Can Still Do
3. Are your emotions affecting your spending and building your debt?

We may feel the need to dine at an expensive restaurant in order to “celebrate” a specific achievement. Or we might go out and purchase a new outfit because we have been treated unfairly and we “deserve” to be pampered. Compulsive spending is usually an attempt to fill an inner emotional need, but the pleasure we feel from our shopping “spree” is only temporary, followed by guilt and the knowledge that we have only increased our debt load. This urge to splurge can eventually cause difficulties on a long-term basis. Not only will our financial stability be damaged, but relationships can also be jeopardized. Somehow we must recognize that our happiness and self worth will not come through spending.

NO MORE Mortgage can help you overcome the urge to splurge.

Security and satisfaction will come as we take care of essential needs and savings, before considering our wants. You may recognize yourself as a compulsive spender. Good for you! That is the first step to overcoming your urge to splurge. Asking yourself a few questions can help you to understand your emotional needs and how they play a role in your spending addiction.

What does money mean to you?

We tend to handle money situations the way our family did when we were growing up. Some might feel as though they missed out on opportunities as a child and want to make up for that now. Does money make you feel accepted, loved, important? When you think of acquiring more things does it bring you comfort or make you feel happier? Are you a procrastinator? Will there always be time to save for important future events, such as a home, vacations, education, or retirement?  Is paying off your debt an important priority, or does the thought of becoming debt free and having NO MORE Mortgage just seem too distant and unreachable?

Do you understand the cycle of your addiction?

Addictions form a cycle that is difficult to break. That cycle usually begins with a feeling of discouragement or negative self worth caused by unresolved issues. The compulsive spender believes that spending money will fill that emptiness and make them feel more worthwhile and complete. At the time they make their purchase they feel happy and fulfilled, but after, they are once again faced with their financial problems and their feelings of negative self worth.

Where does your money go?

Experts at NO MORE Mortgage agree that understanding where you are spending your money is one of the most important steps in learning to manage emotional spending.

A compulsive spender finds that much of their income is already spoken for by the required monthly debt payments resulting from previous purchases. While you are shopping, it is helpful to notice the cost of individual items as well as the amount of your total transaction. For one month, keep track of how much you spend. What areas seem to have the most transactions? For instance, does restaurants, clothes, or video games take over your budget?

What role do your emotions play?

Stop and think about the way you are feeling when you consider buying something. How do you feel immediately after the purchase is completed? Put a name to the emotions: excited, happy, fearful, guilty, sad, angry. How do you feel about the purchase later that day or the day after? How do you feel the next week? Add up your total spending for the month. Were your emotional needs met? Do you actually feel more successful, happy, loved, safe? Are there feelings of self doubt, worry, and fear because of the choices you made?

It can be quite helpful to understand that the urge to splurge has a direct connection with our emotional needs. Understanding that you have allowed your spending to have power over much of your life can make all the difference. By taking time to think about your emotional state before you make a purchase, you will be better equipped to overcome your addiction, leading you to a much more successful financial future.

For more information and to get a FREE audio CD call today. 1.800.285.9102

Will the NO MORE Mortgage Financial Plan work for me?

To find out if you qualify today! Find out what thousands of satisfied NO MORE Mortgage clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! NO MORE Mortgage Representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest!

Related posts:

1. NO MORE Mortgage gives you a plan for your debt. What’s your plan today?
2. Are your emotions affecting your spending and building your debt?
3. NO MORE Mortgage Tip – Are you keeping an eye on your spending?

The bottom line is you may not be able to qualify later due to many reasons such as: home values that have gone down, further restrictions from the lenders, or changes to your income or credit score. This points out another reason why you need to get ahead of your debt. If you start paying down your debt you’ll increase your available cash flow as you pay off each debt. You’ll improve your credit score faster by accelerating the payoff of your debts. Your debt to income ratio will improve as you pay down the debts. And you could start putting more money towards your retirement accounts and savings as you pay off the debts. You’ll be in a better position to qualify if you still need to.

But why stress over not being able to qualify for a refinance later when you may be able to ensure you don’t need it by getting your debts under control starting today?

Your friends at No More Mortgage

Read on and think about your future needs while you do.

David Kosmecki | February 9, 2010

View the original story at

Home Loans Midwest – http://homeloansmidwestblog.com/

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3. Are Home Market Values on the Rise?