Debt settlement celebrations: How to host a Super Bowl party on a budget

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Courtesy of Elvert Barnes.

This weekend, Americans young and old will gather to celebrate an event that spans across generations, classes, cultures and beliefs. It draws more participants than the presidential election and most definitely more enthusiasm.

Welcome to Super Bowl Sunday.

Because debt reduction doesn’t have to mean fun reduction, we’ve collected a few ways to host a Super Bowl Party while sticking to your budget and staying on top of your debt relief program.

Before you invite the neighborhood, take a look at these wallet watcher tips and start your party with a plan.

Now GO (insert your team here)!

No party trays. Grocery stores have capitalized on the human condition of laziness. Most of their prepackaged food trays are twice as much as the basic ingredients they include. Give yourself a bit of extra time and chop your own cheese/veggies/fruit. You’ll save money and probably get fresher ingredients.

No new TVs. If you don’t have a great tube, borrow someone else’s or just get over it. Caving into buying new technology might impress your friends, but not your debt relief company. See our blog about tech debt here.

Buy in bulk. If you’re serving more than a small group, hit up a Costco, Sam’s, Trader Joes or other bulk food store for the best deals on Super Bowl sized snacks.

Coupon clip. Grocery stores are competing for your business and most are willing to cut a deal. Before you shop, scan a few sites for coupons and other promotions.

Skip the streamers. The cost of decorations and doo dads can add up—and they often go unnoticed. Skip it all together. People will be watching the game, not your table centerpiece.

BYOB. People love to participate in events, and asking for contributions is now completely socially acceptable. Encourage guests to bring their favorite brew/beverage, stock your cooler with ice and watch your friends fill it.

Check these out. Affordable appetizers here.

Keep it simple. Guests will come for the game and the company—not the decorations, invites or gourmet spread. Avoid anything elaborate, expensive or extensive. Focus on fun and simple and you’ll keep the losses on the field.

For more information about Superior Debt Relief Services, visit our official site here.

Why your pants are worth more than you think: An economist’s take on Chinese currency manipulation

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Courtesy of Upton.

If you’re looking at a computer, sitting in a chair or wearing pants, you’re probably using something from China. More likely, several things.

China exports thousands of millions of dollars of goods to the U.S. every year, and because their currency—the Yuan—is weaker than the dollar, we get a good deal on what we buy. Like walking into the dollar store armed with 20s, the goods manufactured in China are affordable, and can be purchased cheaper by Americans than most U.S. made equivalents. And as a debt settlement company, we’re always encouraging our clients to cut costs.

So we get cheap goods and China makes money. Win win? Not exactly.

For one, the more China exports, the stronger the Yuan should get, which in turn, over time, should make their goods more expensive and might eventually balance out their exports. But that’s not the case.

In an effort to maintain its position as one of the world’s leading exporters, the Chinese government keeps their currency artificially low by printing more Yuan whenever its worth starts catching up to it. This keeps their goods unnaturally cheaper than their competitors’, and therefore the most attractive to foreign buyers.

The catch—it keeps their worker’s wages low and their people in poverty.

The U.S. government recognizes that the Chinese currency manipulation has not only hurt our own manufacturing and exports but also artificially adjusted the global market in China’s favor, largely at the expense of the Chinese people themselves. At the same time, the U.S. has become dependent on falsely cheap goods.

So what’s the solution? According to economist Peter Morici, it’s going to take a lot more than a wagging finger. Morici believes a tax on currency transactions could be a viable option. If the U.S. were to tax dollars being converted to Yuan at 35 percent (he’s calculated the Yuan to be undervalued by about 40 percent) then the price of Chinese goods would subsequently go up—reflecting their true value, and making them less attractive on the global market.

Although this would not be a painless process (prices would be higher and the U.S. would likely have to start manufacturing more), it would bring more jobs to the U.S., make us less dependent on China, and likely boost our economy—good news for or debt settlement clients and all those facing financial hardship or trying to get out of debt. Morici is confident that his solution is not only doable, but absolutely necessary.

“It’s time for official intervention,” said Morici. “We’ve done manufacturing before and we can do it again. We’re not idiots in a desert.”

For more information about Superior Debt Relief Services, visit our official site here.


Debt Settlement Psychology: How to talk to your children about financial problems

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Courtesy of GoodNCrazy.

Lay-offs, pay-cuts, foreclosure and debt are all realities of the world we live in. What you share with your child about your family’s financial hardships (and the way you share it) can have a profound impact on their ability to process and cope—and even on their financial future.

If your family is facing a trying time financially, whether or not you’ve tried to hide it from your child, they most likely already know.

Children are incredibly perceptive—they can pick up on parent’s stress, hushed conversations, changed spending habits and moods much more accurately than most will give them credit for. Picking up on these cues without the explanation and assurance of a parent can lead to confusion and insecurity—emotions that can cause stress, anxiety and physiological problems.

If you’re a parent in our debt settlement program or working with any other debt negotiation or debt relief company, it’s likely your children have already sensed a change in the way money is spent—and they may need an explanation.

We’ve interviewed psychologist Chris Berger—founder and director of Foundations Counseling, LLC—to find out the best ways to tell your children about your plan to get out of debt or any other financial struggles in your home. He gave us several guidelines for handling this sensitive subject.

How much you should share depends on your child’s age and maturity level. Generally, Berger recommends sharing fewer details and emphasizing security with children under 13—the basic concept of frugality is all they can really process. Most teens, however, will be able to handle more information. If they can understand it, they can better cope with it. But take into consideration your child’s maturity level before deciding which method best suits them.

Don’t lie. Berger stresses this in all areas on parenting. You can choose how you phrase things and how much to share depending on your situation, but don’t give false information.

Educate your children on finances. Utilize a trying time with a slimmer budget to teach your children about money, saving, frugality and wants vs. needs.  Berger said you can use your own financial missteps as a lesson, focusing on what you’ve learned and not being afraid to admit if you’ve made mistakes. “It’s okay to be fallible,” he said.

Focus on the positive. Emphasize that the difficult changes now will be better in the long-term, that a move or change in activity allows for new opportunities elsewhere, and that no matter what, the family will be staying together.

Show a united front. Make sure you agree on what to say to the kids and how before confronting them. Arguing in front of a child can create more anxiety and less of a sense of security. Read more on this here.

Don’t use your child as your confidant. It’s important to maintain the parent/child relationship as a healthy boundary. Confiding in a child like a peer or “over sharing” will give them an added sense of stress. Berger says to remember that the child does not have the answers—focus on their best interests in the situation.

For more information about Superior Debt Relief Services, visit our official site here.

7 ways to budget a baby when you’re in a debt settlement program

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Courtesy of abarefoot.

Regardless of the utopian financial scenario you hoped for, babies happen (ask your mom if you’re not sure how), even to people in a debt relief program.  Unfortunately for those of us without a booming baby fund, they tend to cost quite a bit—according to Parents Magazine, between $7,000 and $14,000 annually—and that stork doesn’t come with a check.

For those with excessive credit card debt, enrolled in a debt management plan or experiencing a financial hardship when they find themselves expecting, there’s an alternative to baby-induced bankruptcy. We’ve asked the experts and compiled some of the easiest ways to save in the first few years, and it’s not as impossible as it sounds—after all, people were procreating long before credit cards.

Alternative incomes. Unless you know something we don’t, you probably won’t be able to work full time full term or during the first few months of baby bliss. Check with your employer to see if you’re covered by short-term disability insurance (which covers pregnancy) or can receive time off under the Family Medical Leave Act (FMLA). Additionally, start planning on either cutting down your spending or looking into ways to work from home, and keep your debt settlement company in the loop.

Nurse. Not only will this save you up to $1,400 in formula in your child’s first year, but it’s also one of nature’s most convenient ways to get rid of those pregnancy pounds.  Bonus, it’s healthier for the baby.

Borrow/Thrift/Reuse Clothes: At the rate your child grows, they’ll be going through clothes faster than the cast of Sex in the City. Rather than sell your soul to Baby Gap, swap garments with friends whose children have out grown them, check your local thrift stores for steals, play hand-me-down if you’ve already had kids and if you’re planning on having more, buy in unisex colors. Or teach your daughter to love trucks.

Skip the newborn shoes. They may be cute, but chances are those baby leather Sperrys or Chuck Taylors cost a pretty penny and are all for show—by the time your child is learning to walk, they will have long outgrown baby’s first shoes.

Don’t over-buy in advance.  A common first time parent mistake is to buy out Babies R Us when baby is hardly a bump, only to be stuck with closets full of diapers/clothing bought in the wrong size, unnecessary gadgets and cumbersome carriers. While some pre-buying is smart, don’t over due it unless you want baby’s first word to be return.

Put away pride and ask your pediatrician for samples. It’s not uncommon for doctors to have hundreds of different samples—including pricy creams and formulas—that they’re more than happy to pass on.

Make your own baby food. Bananas, sweet potatoes, zucchinis, or whatever you’re having for dinner—if it’s baby appropriate, mash some and bombs away.  The dollars saved on Gerber will start to add up—and every bit counts when trying to stay on top of a debt relief program. Check out some homemade baby food recipes here.

For more information about Superior Debt Relief Services, visit our official site here.

You and the Euro: What the European downgrade means to the American consumer

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Superior Debt Relief Euro Debt

Courtesy of Davide Oliva.

If your debt load is making it harder for you to borrow money, you’re not alone—the EU feels your pain.

Standard and Poor, one of the big three U.S. credit rating agencies, downgraded several countries in the European Union earlier this week. Greece has been reduced to junk status and even France took a hit—a country that has long promoted itself as fiscally even-keeled with Germany.

For a better understanding of what this means to the American consumer, we’ve talked with economist and professor Jeff Zax, who offered a clear and concise look at the downgrades and their possible effects. Read on—it might just help you better understand your own credit score.

In your opinion, what was the reason behind S&P’s decision to make the recent downgrades?

S&P downgraded the ratings of a number of EU countries because of continuing concerns about their economic health. S&P was presumably concerned that policies to deal with excessive debt levels in Greece and high interest rates in Italy and Spain are not going to be effective.

Can you explain what this means in laymen’s terms? What is the purpose behind these ratings?

The ratings are an assessment of credit-worthiness. The downgrade implies that there is now more risk in lending to these countries than there was previously. Consequently, those countries will probably have to pay higher interest rates when they borrow.

How might this affect the European economy?

By raising interest rates, this will slow the European economy down. I think that the effect of the downgrade itself will be relatively small, but the European economy is already pretty stagnant.

Is this likely to have an effect on the U.S. economy? The average consumer?

Probably not. It may reduce U.S. exports to Europe by a little but I doubt that the average consumer will notice any difference.

For more information on your own credit score, see a related Superior Debt Relief article here.

For more information about Superior Debt Relief Services, visit our official site here.

 

 

 

Debt Relief news: Warren Buffet’s debt challenge

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Warren Buffet has decided to put his money where his big mouth is and offer to match donations to the national debt made by Republican congressmen $1 to $1. With the exception of Senate Minority Leader Mitch McConnell, whom he’ll match $3 to $1.

The challenge comes after many months of back and forth on solving (or even slightly slowing) our nations’s debt problem, with most Republicans looking for cuts in the national spending and Democrats pushing for greater revenue—largely from raising taxes on the American wealthy.

In reality, if members of Congress donated the entirety of their salaries to the national debt and Buffet threw in his whole fortune—an estimated $47 billion—the combined sum would hardly take care of 10 percent of what the U.S. pays annually in interest alone. Not even a debt band-aid.

For those looking to get out of debt themselves, the idea of wanting to donate to the nation’s deficit (especially this time of year) may sound as likely as Brittany Spears getting back in Billboard’s 100.

Wrong.

The U.S. government has accepted cash and check donations since 1961, and in 2010 started accepting online contributions via credit card.

While most Americans—including clients of a debt relief program like ours—have their hands full with their own finances, almost 3,000 Americans have taken initiative to get the nation out of debt themselves.

Looking at the graphic above, you can see that despite some relatively large donations—with one over $1.5 million—the total sum hardly makes a microscopic drop in the debt pond. And if we divided the total debt between the roughly 300 million Americans, we’d each be paying over $50,000. Not likely to happen.

Politics aside, clearly there must be a better way.

Have an opinion on national debt reduction? Tell us what you think in a comment below.

For more information about Superior Debt Relief Services, visit our official site here.

 

 

 

Debt relief news: Tax forms you’ll need before you file

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debt relief and taxes

Courtesy of Stephen Depolo.

Filing taxes has gotten easier then ever, with the help of digital advisors, online filing options and numerous sites dedicated to walking even the most tax form challenged through the process. Even with the complications of debt settlement, bankruptcy and/or debt reduction, there are tools to help you square up soundly with the IRS from the comfort of your own home.

But the process isn’t completely paper free—at least not yet.

Before you sit down to the screen, make sure you’ve collected these tax forms and find out if you qualify for insolvency. Start as soon as you can—Uncle Sam and your well being will thank you.

  • 1040 Tax Return Form. The backbone of the tax filing process, the 1040 is what the IRS use to know who you are, who’s dependent on you, what has been withheld from you already and what tax credits you might’ve earned. Download the 1040 here. Attempting to start the tax process without it is attempting to water ski without a boat. You won’t get very far.
  • W-2 Form. Likely your employer has snail mailed this one to you, so it might be time to go through that pile of mail you’ve been saving for a rainy day. That day is here. This will sum up how much you’ve earned from your job as well as what has been withheld already—as if you really wanted to know.
  • 1099 Form. This is a record of alternative sources of income as those on the W-2s, including investment earnings, interest and independent contractor income. Unless of course you’re connected in Washington, and then don’t worry about recording this at all. If you’re involved in a debt relief program and have gone through debt settlement or debt cancelation, there is a chance you will have to count the forgiven debt as income, assuming you do not qualify for insolvency (which many in a debt reduction program will). This is recorded on the 1099c form. If this is you, look at the bright side—you’re still paying less than you would have otherwise.
  • Your 2010 returns. You’ll need these to reference when filling out 2011’s. Now we’re really having fun, aren’t we?
  • Mortgage statements. If you are a homeowner who has paid mortgage interest, your lender should send you a 1098 form—also available digitally depending on the lender. Mortgage interest is one of the biggest deductions homeowners have—milk it for all it’s worth.
  • Beer. Not exactly a form, but it is guaranteed to make this process a little less like torture. Bonus, it comes highly recommended by Uncle Sam. Or was that Sam Adams?

*Note: We are not certified tax advisors, and intend this article for general answers and not as tax advice.

For more information about Superior Debt Relief Services, visit our official site here.

Credit card debt solution or more bank pollution? Suze Orman’s prepaid debit card leaves us questioning incentives

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Courtesy of GreginHollywood.

The well-known and watched Suze Orman—a financial advisor and CNBC host—has released the Approved Card by Suze Orman, a prepaid debit card issued by MasterCard. And judging by her interviews, she’s a whole lot more excited than anybody else.

The author and speaker has long advised consumers on debt elimination, including how to avoid credit card scams and get out of debt.

In most ways, the card acts as a typical pre-paid debit card. You load up the card with money, and then can only spend what’s there. Since it’s your money, there’s no interest rate, no way to get into debt. It’s “safer than cash” she claims.

The catch(es): She’ll only charge you a small fee of $3 monthly to spend your own money. Oh and a $3 fee to purchase the card. And the $2 ATM/over-the-counter withdrawal fee. All in the small print, of course.

The last we checked, no one is charging us to use our own cash.

But there is another difference between this card and most prepaid debit cards.

“I’m proud to say that the Approved Card is the first prepaid card in history to share information with Transunion, a major credit bureau,” Orman says from her site.

Transunion is one of the three major credit bureaus responsible for compiling the information used for consumers’ credit reports. What Orman is suggesting is that Transunion’s tracking of this card will somehow improve the cardholder’s credit score, and therefore the price they’ll pay to borrow.

In reality, Transunion has not announced any new method for compiling credit scores, and as of now, the debit card will have no effect whatsoever on a consumer’s FICO.

To her credit, Orman acknowledges that she has no guarantee that use of the Approved Card will bump up credit scores, but hopes that Transunion’s decision to track the card’s usage may be the first step for the bureaus in considering debit when determining a consumer’s creditworthiness.

However, she doesn’t seem to be reporting the fact that the service offered by Transunion is only free the first year. After that, the service will tack another $143.40 onto the cardholder’s annual fee.

Once again, we’re missing where the “safer than cash” comes in.

We’re not trying to bash Orman—she certainly has a lot of valuable debt elimination and consumer financial advice— but we do want to encourage our debt relief clients and all consumers to read the full terms and conditions of any card before signing up. And anytime someone claim’s their system is better than cash, we implore you to take a closer look. Not all that glitters is gold—no matter what color your Visa is.

For more information about Superior Debt Relief Services, visit our official site here.

Looking for Debt relief? First learn the lingo

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Courtesy of Muffet.

Would you order off a menu you couldn’t read without asking questions? Not unless you like surprises. But what if instead of lunch, your financial future was on the line? Likely that’s not something you’d leave to a waiter’s whims.

Just like a foreign menu, debt relief has its own set of terms and language that can prove confusing to outsiders, and often keep people from getting what they think they’ve paid for.  Luckily, this is a preventable mishap.

Before picking a debt relief option, look over the terms below and make sure you’re not getting macaroni and cheese and paying for duck. Freedom from debt is possible—and it starts with education.

Debt relief: Reduction, reorganization, rescheduling or cancelation of debts. There are many types of debt relief services, and many companies that offer them. Not all are worth your time.

 

Debt Settlement: A debt relief option where negotiations are made between a lender and borrower (or a company representing them) to reduce the balance of a debt, typically due to a consumer’s hardship.  A debt settlement program typically lasts between one and three years, and reduces a consumer’s monthly payments and total amount owed.

Hardship: The reason a consumer is in need of debt relief in the first place. A hardship is broadly defined and can include divorce, job loss, income reduction, illness/injury, an unfair rise in interest or any sort of catastrophic event.

Credit counseling: A debt relief option created by credit card companies to combine and modify monthly payments, reduce interest rate and lengthen the terms of the debt (with the goal of eradicating debt between four and five years).  Credit counseling does not change the balance of the debt—just the terms on which it is repaid. Many credit counseling companies are non-profit, but receive fair-share (called kick backs) from the creditors they work for.

Debt negotiation: This can be synonymous to debt settlement, or be referring specifically to the negotiation aspect of settlement—the process of coming to an agreement on a reduced balance.

Unsecured debt: Debt that is not collateralized by a specific asset. Unsecured debt can include credit card debt, student loans and medical bills.

Debt management plan: A formal plan between a borrower and his/her creditors to modify the terms of a loan, adjusting minimum payments, interest rate and payback period to what is realistic for the borrower.

Debt consolidation: Taking out one loan to pay off several. This could be for a lower interest rate or a simplified debt relief plan.

Chapter 7 Bankruptcy:  Typically the last resort debt relief option, a Chapter 7 forces the borrower to liquidate all non-exempt assets of value, and pay their creditor from the sale. The remainder of the debt is forgiven, but the hit on the consumer’s credit score will remain for many years.

Chapter 13 Bankruptcy: Typically filed by those who either do not qualify for a Chapter 7 bankruptcy or who need to protect certain assets in the bankruptcy filing. A Chapter 13 bankruptcy is essentially a court-ordered repayment plan under which the court will decide how much the consumer can repay each month. The repayment period is typically 3 to 5 years and the amount of debt remaining after the repayment period is forgiven.

For more information about Superior Debt Relief Services, visit our official site here.

Superior Debt Relief supports MADD

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As a debt relief company, debt settlement is the tool we use to make a difference in this world. But it’s far from the only thing we’re passionate about.

Superior Debt Relief donates thousands of dollars to charities every year, supporting causes that we believe in whether or not they have anything to do with credit card debt. MADD is one of them.

MADD—Mothers Against Drunk Driving— is an organization on a mission to “stop drunk driving, support the victims of this violent crime and prevent underage drinking.”

This cause is especially close to the Superior Debt Relief family. Responsible driving is something we care deeply about for several reasons:

  • This year, 10,839 people will die in drunk-driving crashes – one every 50 minutes. (National Highway Traffic Safety Administration)
  • There are 2 million repeat drunk drivers on the road at any given time. (MADD)
  • One in three people will be involved in an alcohol-related crash in their lifetime. (NHTSA)
  • An average drunk driver has driven drunk 80 times before first arrest. (Center for Disease Control).

Drunk driving is a real danger, and one that we will likely all be affected by at some point. When you choose us as your debt settlement company, you’re doing so much more than getting the debt relief you need. You’re supporting MADD—among many other charities—in their mission to make this world the best it can be.

As if you needed another reason to get out of debt.

For more information about Superior Debt Relief Services, visit our official site here.