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 A 
t this point, you may realize how burdensome credit card debt can aectyour nances. According to a 2007survey conducted by Cardweb.com, the averagecredit card debt load is nearly $9,900. Basedon an online poll o slightly more than 55,000consumers, 61% said they carry over debt eachmonth on their credit cards and an astonishing13% o the same group said they carry totalcredit card balances in excess o $25,000.Recently, Senator Chris Dodd, Chairman o the Senate Committee on Banking, Housing,and Urban Aairs, introduced Te Credit Card Accountability, Responsibility and Disclosure Act(C.A.R.D. Act), which is a proposed legislationthat will target abusive practices in the creditcard industry. Below are some specic aspectsthat this legislation intends to cover.
Eliminate universal deault.
Tispractice involves raising rates when creditorsdetect a problem on your credit report with any lender. For example, you may have missed apayment with Credit Card A and have a perecthistory with Credit Card B. Unortunately,Credit Card B can still raise your interest ratedue to a blemish on your credit report with theother lender. In 2007, Citibank was the rstcredit card company that put an end to universaldeault. Also, legislators outlawed this practice inthe state o New York last summer. As you cansee, progress is being made and perhaps universaldeault will not exist in the uture due to theC.A.R.D. Act. Presently, a survey conducted by Consumer Action indicates that nearly hal o U.S. banks use universal deault, enabling themto legally raise credit cardholders’ interest rates ashigh as 40%.
Payments need to be allocatedmore airly.
Otentimes, consumers transerbalances because they are enticed by the low introductory rates such as 0% or 2.9%. Readingthe ne print in the credit card agreementindicates that these rates in most cases, only pertain to the transerred balance, not to new purchases. Credit card companieshave been known to apply monthly payments only to thetranserred balance, which resultsin more nance charges on the new purchases. Te C.A.R.D. Act wouldestablish a more air allocationsystem.
Ban excessive ees orsub-prime cards.
Some creditcard companies target consumers with poor credit histories and oerthem cards with astronomicalinterest rates and approval ees.Upon approval o the card, issuerscommonly charge the ees on thesenew accounts. Tereore, youacquire a balance beore you make any signicantpurchases. Te C.A.R.D. Act would prohibitcard companies rom charging ees that amountto more than hal o the credit line. Also, i theees being charged to the card, amount to morethan one-quarter o the credit line, cardholders would be allowed to pay these ees over a one-year period.
Enhance credit card disclosuresand statements.
Reading the ne print o acredit card disclosure can be a tedious task. Teaverage consumer may think it is easier to simply pay the minimum payment and wait until nextmonth. Te C.A.R.D. Act would require issuersto give consumers a clear estimate o how longit would take to pay o the balance and theamount o interest that would accrue i they only make the minimum payment each month. I acardholder’s interest rate increases or any reason,this new legislation will also require lenders togive consumers a 45 day notice.***During the upcomingmonths, this newsletter will oer updates onthe C.A.R.D. Act asinormation becomesavailable on the statuso this new legislation. Although you may havealready been a victimo abusive credit cardpractices, lawmakers seemto realize the need toaddress these issues so thatuture consumers will notbe easily burdened withdebt.
 Volume 4 #6
C.A.R.D. Act Benefits ConsumersFDR Client Reminders • Spare ChangeSave Money at Resale ShopsInspiring Thoughts • It Pays to Stay Healthy
1-800-655-6303
 Welcome to the Freedom Debt Relie monthly newsletter! As part o ourongoing goal to enhance our services, we will be sending you a monthly newsletter lled with interesting articles and helpul nancial tips andadvice. We hope you enjoy this issue, and that you nd the enclosedinormation helpul as you continue on the road to nancial reedom.
C. A .R.D. A c t
 Benefits Consumers
Other Credit Card Reforms Needed
Various consumer groups such as the NationalConsumer Law Center (NCLC) and Demos (www.demos.org), applaud the recent proposal of theC.A.R.D. Act. Below are a few other reforms thatCongress is considering to put in the proposal as aresult of input from consumers and advocacy groups.
Eliminate aggressive lending to young consumers:
 
Applicants under the age of 21 may be required toobtain a signature of a parent or guardian. Young people may have to provide proof that they completed
a fnancial literacy course. Also, consumers under 
the age of 21 would have to choose to receivesolicitations instead of having consumer reportingagencies automatically send them.
Outlaw repeat over-limit ees.
These fees are onlyallowed to be charged once during a billing period.
Limit penalty interest rates.
If a consumer fails tomake a payment on time, issuers can only increasethe interest rate to 7% above the previous rate.
 
News, fnancial tips, and otherinormation regarding personalfnancial reedom
Some gas stations ban plastic.
  According to a recent article in USA oday,many gas station owners are reusing to acceptcredit cards due to the increasing surchargesand interchange ees merchants are requiredto pay on credit card transactions. Many gasstations encourage customers to pay with cash by oering discounts or ree products. In order tohelp merchants, VISA is restructuring consumerinterchange or transactions at automated ueldispensers and service stations. Interchangeor Visa consumer debit cards will be capped at$0.95 per transaction. Tis all, Visa will alsoimplement Real-ime Clearing, which meansthat transactions will be processed immediately instead o at the end o the day. Tis cansignicantly reduce the hold times that nancialinstitutions place on cardholders’ accounts. Gasstations will send a nal transaction amount within hours - i not minutes - o a cardholder’spurchase. Current uel-payment processing cantake up to two days or more. Tese changes canlower costs or oil companies and service stationsand can be passed onto consumers at the pump.
Shop around for prescriptiondrugs.
For consumers who pay or all ormost o their prescription drugs out o pocket,a new price study by Consumer Reports ndsthat it pays to shop around. Not only do pricesvary rom store to store or the same drug, butthe uctuations can be dramatic, sometimesmore than $100 or the same prescription.Consumer Reports placed more than 500 callsto 163 pharmacies nationwide to gauge pricedierences among our prescription drugs. Forexample, prices ran rom $29 to $85 or the drugLevoxyl (or treating hypothyroidism). Plavix, which prevents blood clots, could cost anywherebetween $382-$541. Costs or generic drugsmay also dier. Te price range or the drugalendronate (or osteoporosis) was $124 to $306.Overall, the study revealed that Costco was thecheapest or the our drugs, ollowed by AARP.com and Wal-Mart. Te prices at major storechains such as Rite-Aid and Walgreens could alsovary depending on the geographical location.
New regulations require fnancial
institutions and creditors tohave identity theft preventionprograms.
 
Financial institutions andcreditors are now required to develop andimplement written identity thet preventionprograms under the new “Red Flags Rules,” which is part o the Fair and Accurate Creditransactions (FAC) Act o 2003. Underthese Rules, nancial institutions and creditors with covered accounts must have identity thetprevention programs in place by November1, 2008, to identiy, detect, and respond topatterns, practices, or specic activities thatcould indicate identity thet.
Consumer understanding ofcredit scores only slightlyimproves.
Although consumerunderstanding o credit scores has improvedover the past year, it remains poor, accordingto the latest credit score survey commissionedby the Consumer Federation o America (CFA)and Washington Mutual Bank (WaMu). Lessthan one-third o Americans understand thatcredit scores indicate risk o not repaying a loan.Many Americans ail to understand that one’scredit score reects only how they use credit.Signicant percentages erroneously believe thatcredit scores are inuenced by income (74%),age (40%), marital status (38%), the statein which they live (29%), level o education(29%), and ethnicity (15%). While more thanthree-quarters (78%) correctly understand thatmaking a monthly payment more than 30 dayslate lowers one’s score, less than three-ths(59%) know that maxing out a credit card by using the entire credit line also lowers scores.Large majorities correctly understand that they can learn their credit scores i they are denieda mortgage loan (72%) or declined or a creditcard (65%). But, an even larger majority,(79%), incorrectly believe that credit scorescan be obtained or ree once a year. (Only credit reports can be obtained annually orree.) Tose who obtain their scores know moreabout credit scores than those who have not.For a ree copy o your credit report, visit www.annualcreditreport.com.
Spare Change:
Visit the web site o the Federation o ax Administrators(FA) located at www.taxadmin.org and click on the link atthe top o the page entitled “2008 State Sales ax Holidays.”Many states are waiving sales tax or back-to-school shopping.
 Visit us on the web!
Did youknow that you can view your accountinoramtion online? We have recently enhanced our web site or our clients. Goto www.reedomdebtrelie.com and click on the tab “Current Clients.” Ten, nearthe bottom o the page under the heading“Existing Client Login or AccountInormation” click on the button, “Click Here.” Enter your e-mail address, andthen ollow the instructions to create apassword and validate your inormation. You will now be able to view thisinormation online!
ax Debt?
 
I you owe money to theIRS and would like inormation onhow to reduce your tax debts, pleasecontact our sister company, Freedomax Relie at 1-800-455-6AX. Our taxattorneys and tax specialists are eager toimmediately start helping you resolveyour tax troubles. In addition, existingFDR clients are eligible or a $100 reerralbonus i they reer someone to Freedomax Relie.
 American Consumers Union
FDR has a partnership with the American Consumers Union in order toprovide additional support to our clients with respect to creditor harassment. All FDR clients are automatically given membership into the AmericanConsumers Union, and are given the ulluse and support o the advocacy group,at no additional charge. Tis is a terricbenet or our clients and we are happy to be able to provide this service to ourclients at our expense. You can visit themonline at www.myacu.org.
 
***
Customer Service Phone No:1-800-655-6303 Hours o Operation:
Mon-Turs:
6:00 a.m. – 6:00 p.m. PST
Fri:
6:00 a.m. – 5:00 p.m. PST
Sat:
7:00 a.m. – 11:00 a.m. PST
E-mail:support@reedomdebtrelie.com
Client Reminders
Tax-Free Days:
 
 Save Money at Resale Shops
 At this time, the idea o your debt may consume every one o your thoughts andemotions. I you attempt to think aboutsomething else, you receive a call rom a rudecollector and your worries and uncertaintiesbecome the oreront o your mind.Tis daily stress can really make you lose sighto the unique person that you have become. Your avorite pastimes, interests, and hobbiesmay seem like a nostalgic distant memory. Italmost seems like your sole purpose is to pay o debt. Although this intense dedication to pay o debt is extremely noble, try not to orget themeaningul aspects o lie and the person thatyou have become. Despite your nancial crisis,you still have your riends and amily andyou can still recall positive memories that youshared with them. You are still allowed to play your avorite CD, read an intriguing novel, or watch your avorite sitcom when you want torelax. Small pleasures such as these may be thediversions that we need, especially on difcultdays. When the pressures o our money situationbecome unbearable, relaxing occasionally may give us strength and perseverance to accomplishour goals.Dealing with stress eectively can also preventanger and bitterness. As most o us know, lieinvolves good and bad experiences. Instead o dwelling on the negative, think o your currentsituation as a learning experience.Do not automatically assume that enjoyingyoursel requires a signicant amount o money.It is true that it may not be realistic to book alavish vacation or make a weekly appointmentat an upscale spa. As mentioned previously,simple activities such as listening to music andreading can be relaxing. You also may want toexplore what your local community has to oer.Summertime is a great time or ree concertsand walks in the park. aking the kids to theplayground or going out or an ice cream conecan also give you a break rom thinking aboutdebt.
Inspiring Thoughts
Frugal Green Tip
According to the U.S. Department of Energy, 75% of theenergy used to power electronics in the home is consumedwhile the products are turned off. Consider unplugging itemssuch as microwaves and cell phone chargers when not inuse.
 A hundredload o worry will not pay anounce o debt. ~George Herbert 
M
any consumers know that you can ndgood deals on pre-owned items at eamarkets, Ebay, Craigslist, and variousclassied ads. In recent years, many ranchisespecialty resale shops have emerged on the retailmarket. Tese stores allow shoppers to shop orspecic specialized goods and also may give youcash or your unwanted items. Below are somedescriptions and web sites that have a growingnumber o locations across the nation.
Once Upon a Child:
 
 With more than230 stores nationwide, Once Upon a Child buysand sells gently-used children’s toys, urniture,and clothing. Most parents know that kidsoutgrow everything very ast. Tereore, thisresale shop can save amilies money on items thatchildren use or a short time. Tose bags ull o gently-used clothes that children wore or a ew months could also earn parents some extra cash.For more inormation, visit www.ouac.com.
Plato’s Closet:
 
Tisstore has a similar concept toOnce Upon a Child, except itis geared towards teens. Plato’sCloset, a ranchise resale shopthat buys and sells gently-usedteen apparel, specializes indesigner brands such as Expressand Abercrombie & Fitch.In addition to purchasing stylish clothes or araction o the cost, your teen can also get cashor clothes that they do not wear anymore. Visit www.platoscloset.com or a store near you.
Play It Again Sports:
Participatingin school or community sports producespositive results or your child. However, parentsare sometimes burdened with bills or costly equipment and transportation ees. Play It AgainSports allows you to turn in your used sportinggoods or credit towards new purchases. Tisstore also gives cash or used tness equipment.View them on the web at www.playitagainsports.com.
Half Price Books:
 
By the name o thisstore, it is easy to assume that it carries a widevariety o used books. However, they also stock pre-owned music, movies, and games.Most items are at least hal o o the publisher’soriginalprice. I you are an avid reader, this store may be a good alternative to the pricey bookstoresthat sell only new items. Hal Price Books alsogives you cash or your used books, CDs, movies,etc. According to this store’s web site (www.halpricebooks.com), associates will make an oeron every one o your items.
CD Warehouse:
Tis resale storebuys, sells, and trades used CDs, DVDs, VHStapes, games, and vinyl records. Te amounto cash you receive or CDs depends on thecurrent inventory o the individual store. TeCD Warehouse also provides a great way tounload the music that you no longer listen toor have converted to MP3 ormat. Music buscan also nd interesting and rare tunes or a low price. Visit www.cdwarehouse.com or moreinormation. Tis ranchise also operates underthe names o Disc Go Round, CD Exchange, andMusic rader.
ComputerRenaissance:
Keepingup with the latest computertechnology can be a costly endeavor. Computer Renaissanceoers consumers reurbished namebrand computers and also custombuilds new computers. Whenit comes time to upgrade yoursystem, you may be able to receive trade-in valueor your equipment and apply it to the cost o a new computer. For more details, visit www.compren.com.
ReTool:
 
Household tools can be a surpriseexpense because some people may only buy them when they absolutely need them while others liketo tackle various home improvement projects asa hobby. Reool oers an array o new and usedtools which includes everything rom table sawsto nails. All used tools are inspected to ensurethey are unctional. Tis store will also buy yourunwanted tools or give you credit to tradeup to a dierent model. Find alocation near you at www.re-tool.com.
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