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 Volume 4 #11
Financial Goals Throughout the YearNew Credit Card Rules: A Step in the Right DirectionMaking the Most of a Bad Economy • Spare ChangeInspiring Thoughts • FDR Client Reminders
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.
 April-June
Financial GoalsThroughout the Year 
 January-March July-September October-December
 A 
s a new year begins, many people may make resolutions and contemplate on ways to improve their lives throughout 2009. ackling a long list o goals all at once can be overwhelming and as a result, resolutions may be quickly orgotten. Setting realistic expectations may help you achieve agreater amount o success. Below are some nancial tasks and tips that may bring you closer to nancial reedom during the upcoming year. Youcan also create a similar list o goals that you may want to achieve throughout the various seasons. Happy New Year and we look orward to providing you with valuable inormation during the upcoming year.• Start o the new year by making some nancialresolutions. Focus on waysthat your amily can save ondaily living expenses. VisitMoneySavingGuide.com touse the “Money Saving o-Do List,” an online tool thatallows users to type individualgoals and check them o  when they are completed.• ake advantage o holiday clearance sales at thebeginning o the year. Tis is agood time to stock up on git wrap and decorations or thenext season.• In February, show your loveor your spouse or signicantother with an inexpensive, butmeaningul git. For example, write a poem or rame aspecial photograph. Acquiringdebt or extravagant gits isnot attractive.• Prepare or the tax lingdeadline by organizingnecessary paperwork. You canalso visit the IRS web site at www.irs.gov or tax changes.Estimate your tax return onthe H&R Block site at www.hrblock.com. Select the“Calculator link” and enteryour inormation.• Kick o your spring cleaningby hosting a garage sale . Youcan also sell unwanted itemson www.ebay.com or www.craigslist.org or extra cash.• Consider using homemadecleaning solutions or yourhome. Visit the Eartheasy  web site at www.eartheasy.com/live_nontoxic_solutions.htm and learn how to makenon-toxic cleaners.• In honor o Earth Day on April 22, consider ways thatyou can reduce your impacton the environment and savemoney. For example, buy used items instead o new toprevent trash rom lling upthe landlls and drive lessto conserve uel. Visit www.earth911.com or more tips.• I you plan on doing any home improvements, consider“DIY”, or do-it-yoursel. Although you may have tohire a proessional or somecomplicated projects, youmay be able to completesome tasks yoursel. Visityour local library to nda comprehensive guide onlearning how to do jobs suchas cleaning your gutters andinstalling a ceiling an.• I you use an air conditioner,consider weatherstrippingthe seams around the unit toprevent air leaks. Accordingto Energy.gov, i everyonepurchased an energy-ecientair conditioning model,it would save 831 millionkilowatts o electricity per year.Visit www.energy.gov or moreenergy saving tips.• Use travel sites such as www.orbitz.com and www.travelocity.com or planningtrips. I a vacation will break your budget, consider checkingout attractions in your localarea.• Make it a goal to save yourspare change on a regular basis. At the end o the year, you may be able to make an additionaldeposit to your reserve account.• Consider using “back-to-school” shopping trips as anancial lesson or children.Give them a list and a budgetand tell them to stick toit. Children may learn thedierence between wantsand needs. For discounts ontextbooks and sotware, collegestudents can check out sitessuch as www.textbookx.comand www.journeyed.com.• Review your bank statements.I you are paying a monthly ee or your checking account,nd a local bank that oersree checking.• Consolidate trips to thegrocery store to avoid buyingmore than you need. Planyour meals according to weekly specials in the grocery store. Use coupons only whenthey can save you money onproducts that you normally purchase.• ake precautions that may protect you rom becoming avictim o identity thet. Forexample, shred all nancialdocuments beore puttingthem in the trash. Be smartabout entering inormationonline and always try to vary your passwords and usernames. For more tips, visit www.identitythet.com or www.tc.gov.• Establish a system that willhelp you remember to pay all bills on time each month.Consider marking the datesin a calendar or using e-mailreminders. Paying bills onlinemay also help you avoidlate ees and save money onpostage.
 
 
Creditor Calls:
 
I you are gettingcalls rom creditors, please use the script we have designed or you. Tis will allow us to work more eectively with thesecreditors. I you have lost your script, letus know and we will be happy to resendit to you.
Drat Changes – 5 Days Notice:
I you plan on changing the drat amountyou are depositing into your settlementbank account each month, please submitthe request at least ve business days inadvance o your next scheduled drat. We want to ensure that it is processed by thebank in a timely manner.
 
ax Debt?
 
I you owe money tothe IRS 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.***
Customer Service Phone No:1-800-655-6303FAX No: 650-393-6800Hours 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
We wantyour ideas!
 What do you want to see in thenewsletter? We welcome your input.Email your ideas to ino@pif.org.
Playbook or Lie (www.playbook.thehartord.com)is an educational web site that gives college studentsthe opportunity to take charge o their nances beoreventuring out into the “real world”. Sponsored by TeHartord, a major nancial services company, students canuse online calculators, download budget worksheets, andread helpul nancial articles.
M
uch discussion surrounds theissue o the struggling economy. Although the state o the world may look bleak, uture positive changes may evolverom this nancial crisis. Below are some ideasthat may help give you an optimistic view o therecession.
Stores may lower prices.
During thepast holiday season, many stores slashed theirprices to entice shoppers to spend. Te NationalRetail Federation orecasts that retailers willstill oer great bargains at the beginning o theyear. aking advantage o these low prices is agood way to stock up on necessities. Be careulo buying extra items simply because they areon sale. As many consumersreview their nances duringthe rough economy, storesmay also tailor their gimmicksand advertising towardsbudgeting and saving money.For example, Dolans.com, aninormative nancial web site,reports that lay-away programsmay be making a comeback atmany retailers.
Cash becomes a preerred payment method.
 
Spending withcredit may not be as easy as it was in the past. A July 2008 Federal Reserve Board survey indicates that 65% o U.S. banks had tightenedtheir lending standards on credit card loansduring the previous three months. As credit linesare lowered, consumers may choose cash as apreerred payment method or many purchases. According to Cardweb.com, a web site thattracks the payment card industry, consumersspend nearly 200% more when using credit. A rough economy may allow many consumers tosee the value o using cash.
 You have a support system.
Creditcards make it easy or consumers to live beyondtheir means and impress riends and amily.Swiping a credit card can quickly allow youto pick up the tab or an expensive dinner orpurchase extravagant gits or special occasions. As more consumers experience the eects o the economy, you will more than likely beacquainted with someone that is required totighten-up their budget instead o people thatencourage overspending. Surrounding yoursel  with supportive individuals that understand yoursituation may help you persevere and achieveyour nancial goals. Hopeully, rugal livingmay perhaps become a lastingtrend even when the economy bounces back to a prosperousstate.
 Your opinion counts.
 Consumer Reports’ latestnational survey nds that morethan hal (56%) o respondentsthink that the government hasnot done enough or them inthese tough economic times.Only 17 percent o thosepolled said the governmentneeds to do more or banksand nancial institutions. Inthe poll, 29 percent said the government wenttoo ar in bailing out the nancial industry. Youhave the opportunity to express your views onthese types o issues by calling 1-800-BAIL-OU. Once you call the toll-ree number, you will be prompted to speak and share anything onyour mind about the current nancial situationin America. Your message will be recorded,digitized, and uploaded to www.bailoutrants.com. Other users can listen to your message andcomment on it.
Making theMost of aBad Economy
 
 A 
s you move through your debtnegotiation program, you may longor the day that you will be ree o debt, which certainly will be a signicantaccomplishment. O course, many peoplerealize that once we achieve one goal inlie, we then ace another opportunity orchallenge.One goal that certainly could be o interest is rebuilding your credit. Tis is atopic that may bring about mixed eelings. You may be eager because you have a chanceto start anew, yet overwhelmed because youmay not know where to begin. Although rebuilding your credit is anexciting time to ocus on the uture, it may take as much time as paying o your debt. At rst, you may still experience somerejection and adversity. For example, a lendermay deny your application or a car loanor you may be orced to pay a higher rate. While these situations may be dicult tobear, you must not regret all o your hard work and perseverance during your debtnegotiation program. Keep in mind thatsome potential lenders simply view you as alow three-digit credit score number or labelyou as “high risk.” Banks lend people money because they want to make more money inreturn. I you are not approved or a loan,it is not a refection on your character; it issimply a business decision. You have probably heard the saying “goodthings come to those who wait.” Tis clichécould also be applied to re-establishing yourcredit. Upon completing your program,make a conscious eort to take steps toimprove your credit rating. Considerapplying or a credit card and charge smallamounts which you can aord to pay inull each month. Secured credit cards arealso an option. imely payments on all o your bills will eventually put you in a low risk category. Although it is impossible toguarantee anything in lie, practicing goodnancial habits should sooner or later boostyour credit score.Remember that there are also many opportunities to improve your nancialskills as you strive to settle your debts.For instance, take advantage o the many nancial resources available online and atyour local library. Knowledge is power andeducating yoursel on money matters willhelp you at all stages on the road to nancialreedom.
R 
ecently, new rules adopted by theOce o Trit Supervision will helpprotect consumers rom certain abusivecredit card lending practices that can result inexcessive ees and interest rate charges. Te rules were developed in conjunction with the FederalReserve Board and National Credit Union Administration. Below is some basic inormationabout these new regulations.
 What are the changes?
 According to Demos, a public policy researchorganization, the recently issued rules will bansome o the bait-and-switch tactics in credit cardlending. Te new rules will:•Prohibit banks rom retroactively increasingthe interest rate their customers must pay onexisting balances•Prohibit banks rom allocating payments tolower-rate balances rst to maximize nancecharges•Ban the practice o “double-cycle billing,” which calculates interest over more thanone month, and can result in higher nancecharges•Eliminate upront ees on so-called eeharvesting credit cards when they eat up themajority o the available balance on the cards•Require banks to provide consumers areasonable amount o time to make payments
 What prompted these changes?
Te new regulations were nalized aterthe Federal Reserve Board received a food o comments rom approximately 66,000 peopleduring a consumer testing study. Also, duringthis struggling economy, many banks have beenlowering credit limits and raising interest rates tocompensate or the losses rom themortgage crisis. Demos reportsthat these tactics are causingmore borrowers to carry higherbalances or longer periods o timeand run the risk o exceeding thecredit limits.
 When do these changes take efect?
Tese rules will not ocially take eectuntil July 1, 2010. However,the Oce o Trit Supervision encouragesinstitutions to make their best eorts to conormas soon as possible, particularly to the provisionsrelated to high-ee cards.
 What still needs to be done?
 While the new rules will provide importantnew protections, more saeguards may be neededto address other lending practices that can makeit dicult or consumers to manage their credit. According to the Consumers Union, otherreorms needed to address some o the abusivepractices that hurt consumers are:•Limiting the amount o “penalty” interestrates, and how long card companies can keepyou at these extremely high rates.•Prohibiting ees or paying a credit card by phone or internet.•Prohibiting account-opening ees no morethan 10 percent o the credit limit.•Banning multiple over-limit ees during asingle billing cycle.
How do these new rules afect me?
Tese new rules are a positive step in the rightdirection or consumers. Once you completeyour debt negotiation program, these regulationsmay help you make a resh start as you strive torebuild your credit rating. Keep in mind that it will still benet you to practice prudent creditcard use. Avoid additional interest and ees by only charging what you can aord topay in ull that month. imely credit card payments may slowly improve yourcredit score.
New Credit Card Rules:
 
A Step in the Right Direction
Inspiring Thoughts
Visit www.hip2save.com, a blog that oerslegitimate ree samples, online coupons, andother reebies.
It’s Hip to Save!
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