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he term “bounce” or “bouncing” canrefer to fun children’s games or a cutenewborn baby. However, when the word bounce is used to describe a check, negativethoughts may come to mind.Let’s face it. Most of us have inadvertently miscalculated our checking account or forgottenabout an automatic deduction. It can happento even the most budget-conscious individuals.Unfortunately, these simple oversights may haveresulted in an overdrawn account and costly fees. According to the Center for Responsible Lending(CRL), a $100 overdraft with a $34 fee has an APR of 884% if the overdraft lasts 2 weeks.In addition, your bank may also charge you adaily fee, averaging $2 to $5, for each day youraccount has a negative balanceOverdraft protection may help you avoid someof these fees and aggravation associated withbounced checks. You usually have to sign up forthis service and have an additional account withyour bank. If your account becomes overdrawn,overdraft protection kicks in and obtains fundsfrom a savings or checking account, a credit card,or a home equity line of credit. Because of yourlimited access to credit, you may consider usingan additional checking or savings account foroverdraft protection. When it comes time to re-establish your credit,you may want to reconsider using a credit card orline of credit for overdraft protection. Bankrate.com states that consumers may incur 18 percentor more in interest when they use credit foroverdraft protection. Some banks may alsocharge an annual fee or cash advance fee for thisservice. With most overdraft protection plans,banks usually deduct money from the linkedaccount in certain increments. For example, if your account is about to be overdrawn by $10,your bank may still take $50 from a line of credit. Terefore, banks encourage you to spendand borrow more money than you really need.Much controversy surrounds the issue of overdraft loan products. As you may know, evenif you do not have a linked account for overdraftprotection, banks will still allow you to overdraw your account when you make check payments, withdraw money from an automated tellermachine, or use a debit card.Ten, they routinely charge overdraftfees. Legislation wasrecently proposed inan attempt to end thispractice. However,representatives fromfive major consumeradvocacy groups aredisappointed withthe outcome issuedby the Office of TriftSupervision, the FederalReserve Board, and theNational Credit Union Administration concerning bank overdraft loan products. Te new proposal will require banks that allow overdrafts to provide a right to opt out of these programs, but the new proposal does notrequire banks to obtain permission to “opt-in”the overdraft programs before enrolling accountholders in the systems. According to a recent Center for ResponsibleLending (CRL) survey, consumers want, butare not getting the choice of whether or nottheir checking account will include a fee-basedoverdraft loan feature. Interestingly enough,respondents to the survey reported that they  would overwhelmingly prefer that their debittransaction be denied at the checkout counterif approving it would cost them a $34 fee. TeCRL survey also found that 16% of respondents pay 71% of overdraftfees.Keep in mind that overdraftprotection is intended to helpyou out in case you accidentally overdraw your checking accountonce in awhile. According toBankrate.com, bankingexperts estimate thatapproximately 50% of consumers that haveoverdraft protection useit every month. If you findyourself using this service thisfrequently, you may considerkeeping better track of yourexpenses. Our tips on how to balanceyour checkbook listed below may helpyou bounce less checks and use overdraftprotection as little as possible.
 Volume 4 #5
Overdraft Protection: Good or Bad? • Spare Change Recent Grads Face Bleak Economy • Money-Saving Gas Tips Are You Financially Prepared for a Disaster? Summertime Tips To Keep Cool & Save Money 
1-800-655-6303
 Welcome to the Freedom Debt Relief monthly newsletter! As part of ourongoing goal to enhance our services, we will be sending you a monthly newsletter filled with interesting articles and helpful financial tips andadvice. We hope you enjoy this issue, and that you find the enclosedinformation helpful as you continue on the road to financial freedom.
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 When shopping or running errands, keep allreceipts in your wallet or another convenientplace. Log all expenses in your checkbook  when you have a free moment. Tis isespecially important if you use your debit cardfrequently.
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Mark all of your automatic deductions in yourcalendar. Tese can be easy to forget since mostof us have busy schedules.
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Check your account balance on a regular basis.ake advantage of services such as online andtelephone banking. Also, contact your bank to see if they offer any type of automatic alertservice. Your bank may be able to alert you viaphone or e-mail if your account falls below acertain amount.
Tips on Balancing Your Checkbook
OverdraftProtection: 
Good or Bad?
 
R 
ecently, many young adults havegraduated from college and are gettingready to make the transition fromcollege life to the “real world.” Unfortunately, arecent data report from Demos, a public policy organization, indicates that this generation of young adults may be the first not to surpass theliving standards of their parents. Factors suchas declining incomes, growing debt, the highcost of homeownership and healthcare costs allimpact this prediction. Below are some tips foryoung adults as they begin to make importantfinancial decisions in the current economy. If you are a recent graduate, congratulations and we hope this information helps you launch thenext chapter of your life. As for parents, use thesetips to guide your son or daughter in the rightdirection or pass this article on to them.
Find a place to live.
 Although it may not be an ideal situation, you may consider livingat home temporarily until you are able to saveenough money for your own place. Your job location will also influence whereyou live. If you must rent an apartment or ahouse, this cost will probably consume themajority of your income. According to a study from the Center for American Progress, moreyoung people are considered “housing burdened”because they are paying more than 30% of pre-tax income on rent.Realize that living on your own not only involves rent and housing costs, but you willalso have to pay for items such as food, cleaningproducts, and other incidentals that you may have taken for granted while living at home.Consider renting with roommates or friends todefray some of the housing expenses. As a renter,you may want to obtain renter’s insurance, asmany leases require it. Landlords usually haveinsurance on the building, but not your personalbelongings.
Develop a plan to pay student loans.
 According to statistics from the NationalPostsecondary Student Aid Study, the averagestudent loan debt among graduating seniors is$19,237. Because many students defer payments while attending school, this may be the firsttime that they see how much their educationreally costs. Although it may take time to pay off your student loans, you may have optionsif you are not able to make payments. Contactyour lender immediately to see if you qualify fora forbearance or deferment. Avoid defaulting onyour student loans because it may result in wagegarnishment or the inability to obtain additionalstudent loans to further your education in thefuture.
Transportation has hidden costs.
Many young grads are eager to purchase a new vehicle. Be careful not to take on more of a carpayment than you can afford. If you are under25, you will probably pay premium insurancerates because of your age. Also, some apartmentbuildings and cities require you to purchaseparking passes. You may want to consider publictransportation if it fits into your work schedule.It may not be as convenient as driving yourown car, but it may help you to save money on gas, insurance, and car payments. In fact,in large metropolitan cities such as Chicagoand New York, owning a car may be more of adisadvantage.
Obtain health insurance.
Because youare no longer a full-time student, many healthinsurance plans will not cover you under yourparent’s insurance. If you secured a job with acompany that offers health coverage, consider joining their group plan. In most cases, it isless expensive than an individual plan. Keep inmind that most companies have a designatedprobationary period before you are eligible forhealth insurance. In the meantime, you may  want to contact a local insurance agent for moreinformation on temporary or short-term healthcoverage.
Control credit card debt.
 Accordingto ruth About Credit (www.truthaboutcredit.org), a student public interest research group,college students are graduating with an averageof close to $4,000 in credit card debt. If you haveobtained a student credit card(s) during college,consider establishing a plan to reduce your debt.Refrain from using credit to charge expenses suchas food and gas, unless you are able to pay thebalance in full each month.
•www.youcandealwithit.com•www.creditcardnation.com•www.finaid.org•www.youngmoney.com
Helpful Sites for Grads
Recent GradsFace Bleak Economy 
Study reveals that consumersstill cling to paper statements.
A new report released today by Javelin Strategy & Research examines green banking issues,including consumer habits, green bankingbehaviors and recommendations for financialinstitutions seeking to attract environmentally conscious consumers. Researchers found thatalthough most consumers expressed an interestin adopting green banking behaviors, three outof four consumers still receive paper statements. According to Javelin, if every U.S. householdstopped receiving paper bills and statements,687,000 tons of paper would besaved every year– enough tocircle the Earth239 times.
 Website allowsseniors to search for assistance.
 
 A significant amount of the elderly population,especially those with limited incomes andresources, are living in poverty. For example,some 5 million seniors experience some form of food insecurity. Many others struggle everyday  with meeting their basic needs. Te NationalCouncil on Aging’s (NCOA) BenefitsCheckUp®strives to change that. Trough its free,confidential online service, Americans 55 yearsand older can determine if they qualify for help with the costs of groceries, prescription drugs,Medicare premiums, health care, utility bills,and in-home services. For more information onthis program, visit www.BenefitsCheckUp.org.
Consumers are owed free credit reporting.
ransUnion recently announcedthat it will soon begin providing eligible U.S.consumers up to nine months of free creditmonitoring and related services. Te offeringis part of a preliminary settlement of a classaction lawsuit that has been pending for many years and arose from a business ransUniondiscontinued in 2001. Te Class includesindividuals who had an open credit accountor an open line of credit from a credit grantor(including, for instance automobile loans, bank credit cards, department store credit cards,other retail store credit cards, finance company loans, mortgage loans, and student loans)located in the United States anytime from January 1, 1987 to May 28, 2008.
Spare Change:
News, financial tips, and otherinformation regarding personalfinancial freedom
 
A
 A 
s the temperature rises during thesummer months, air conditionersunleash comfortable cool air,soothing people from the scorching heat.Tis modern day convenience seemsimpossible for most people to live without...until the electric bill arrives. Te ideas listedbelow may help you reduce your electric billthis summer so your balance does not heatup with the weather.
Contact your utility company forinformation about money saving energy plans. Most energy companies offerbudget payment options. In most budgetplans, your utility company will bill youin equal monthly amounts, which resultsin more consistent payments. Teseplans allow you to budget your money so you will not receive any surprisingly high bills. Any overpayments are usually credited to your next bill.
If you are experiencing a hardship thatprevents you from paying your electricbill, you may qualify for energy assistanceplans based on your income level. It isessential for you to frequently updateyour utility company on your situation.In most cases, they will be willing to work with you without interrupting yourservice.
If you are purchasing a new airconditioning unit, select an energy-efficient model. Although they may cost more, it will save you money onyour monthly electric bills. Visit www.energystar.gov for more details.
Install a programmable thermostat. Tisdevice may help you adjust settings tokeep your house warmer than normal when you are out and cooler when you arehome.
Protect room air conditioners from directsunlight. If the unit does not feel hot, it will not have to work as hard.
Contact your utility company for any freemaintenance or check-up services for airconditioners. You may also try to installnew filters in your unit.
 
Summertime Tips To Keep Cool & Save Money 
 N
atural disasters such as hurricanescan cause devastating damage.Hurricane season recently began on June 1 and runs through November 30. Expertsat the NOAA Climate Predication Center areprojecting a 65% chance that the Atlantichurricane season will be above normal this year. AIR Worldwide Corporation, a leading risk modeling company that helps clients managethe financial impact of catastrophes and weather,report that hurricanes and earthquakes have thepotential to cause approximately $500 billionof total economic losses. Although it may notbe possible to completely protect yourself fromthe wrath of mother nature, below are someprecautions and valuable information that may help you recoup a portion of your loses if youare a victim of a natural disaster.

 According to the Federal Emergency Management Agency (FEMA), floodingis the number one natural hazard. Many people have themisconception thattheir homeownersinsurance will coverflood damage;however, it doesnot. In fact, FEMA indicates that only 25 percent of the 10million homes thatlie within high floodrisk zones carry flood insurance. Inorder to obtain floodinsurance, you must live in one of the 20,000communities that participates in the NationalFlood Insurance Program (NFIP), a componentof FEMA that handles flood insurance,floodplain management, and flood hazardmapping. For useful information about floodinsurance, visit www.floodsmart.gov, the official web site of NFIP. Use this resource to determineyour area’s flood risk, estimate your premium,and helpful FAQ’s concerning flood insurance.
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Depending on which disasteris more likely to strike in your geographicalarea, take steps to reduce the risk of damage.For example, if you live in an area that isprone to hurricanes, install hurricane shutterson your windows. In regions that experienceearthquakes, secure objects like bookcases thatcould easily fall. You may also want to consulta building inspector for suggestions on homerepairs that could prepare your home for adisaster. Certain home improvements may alsolower your homeowner’s insurance premium. According to the Insurance InformationInstitute (III), it is a good idea to make sure youhave enough insurance to rebuild your homeand replace all of your personal belongings. You may also want to consult your insurancecompany about Additional Living Expenses(ALE) coverage, which pays for the additionalcosts of living away from home such as hotelbills and restaurant meals while your house isbeing repaired or rebuilt.Fires may affect any home, so installing smokedetectors may be a good idea. Te American RedCross recommends that you contact your localfire department to see if they make free housecalls. In some cities, a fireman may visit yourhome to evaluate your property and make firesafety suggestions.
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Visit www.ready.gov, theofficial web site of the U.S. Department of Homeland Security (DHS), for a printableemergency supply list. In addition to itemslike prescriptionsand non-perishablefood, USHS alsorecommends thatyou include copies of insurance polices andbank account recordsin a waterproof container. Althoughyou may be on abudget, you may consider keepinga small amount of cash on hand or asmall roll of quarters in case phone lines aredown and you have to use the pay phone. Forinsurance reasons, you may also want to make alist of your valuables. Te Insurance InformationInstitute also recommends consumers visit thesite www.knowyourstuff.org to download freehome inventory software.
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FEMA offers many assistanceprograms to those affected by disasters. Visit www.fema.gov and click on the “Apply for Assistance” link to familiarize yourself withthe procedures. Depending on the type of emergency situation, you may qualify for anumber of their programs including DisasterLegal Services, Disaster Unemployment Assistance Program, and the Emergency Foodand Shelter Program. Your local branch of the American Red Cross may also provide you with basic needs such as food and clothingimmediately following a disaster. Visit www.redcross.org for more information.
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