Volume 5 #1

Tips to Save on Household ExpensesFDR Client Reminders • Latest Tax ChangesCredit Corner • Spare ChangeInspiring Thoughts • Love and Money

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.

Tips to Save onHousehold Expenses

Fix it.

According to a recent survey romthe PartStore.com, an online retailer that sellsreplacement parts or household appliances andelectronics, 82 percent o consumers are morelikely to repair a product rather than replace it inorder to save money in this rough economy. Visit www.partstore.com to see i this site can save youmoney.

Senate extends DV date.

Te UnitedStates Senate recently approved legislation toshit the nation’s digital television transitionrom February 17, 2009 to June 12, 2009.Tis decision was made in order to bettereducate consumers about the transition andgive households an opportunity to utilize theconverter-box coupon program. Consumers withexpired coupons may apply or new replacementcoupons at www.dtv2009.gov or call1-888-DV-2009 or more inormation.

New web site helps keep consumerssecure online.

Te new site: www. JustAskGemalto.com is a place where people cango or advice on topics such as Internet security,online payments, password management, creditcard raud, and identity thet. As the use o digital technology broadens, consumers have arole in saeguarding their identity more than ever.Tis site is set up in a user-riendly question andanswer ormat. You can nd helpul answers toquestions such as “What is the saest way to pay online?” or “What are common ways identity thet occurs?”

Wash clothes in cold water.

Accordingto the Alliance to Save Energy, clothing washersand dryers may account or more than sixpercent o your annual energy bill. Te Alliancerecommends that consumers do ull loads o laundry to avoid wasting water and clean dryerlint ater every load to improve air circulationand quicken drying.

View energy tips online.

Last all, theDepartment o Energy launched the web site www.energysavers.gov to help consumers bemore energy efcient and save on energy costs.Tis site oers easy energy saving tips, nancialassistance links, long-term solutions, and a blogcovering energy topics. Visitors to the site canalso download an energy saving to-do list andother materials.

ake advantage o tax credits.

As parto the Emergency Economic Stabilization Act, energy efciency tax credits will allow homeowners to lower their monthly homeenergy bills and their ederal income taxes in2009. axpayers have the opportunity to usetax credit up to $500 to make specic energy efcient home improvements to their insulation,exterior windows, urnace, air conditioner units,and much more. Details can be ound on the Alliance to Save Energy web site at www.ase.org/taxcredits.

Stay at home.

Allrecipes.com, a leadingsite or recipes, recently completed its AnnualFood rend Forecast. Results indicated that 80percent o respondents plan to cook at homemore in the upcoming year to help manage theirood budgets. Also, 61 percent o respondentsreported that they dined out much less duringthe past year. Visit www.allrecipes.com or recipesand cooking ideas. Tis site also includes asection dedicated to cooking on a budget.

Spend $3 per day on ood.

Accordingto the U.S. Department o Agriculture, thetypical American amily spends 15-20% o theirhousehold budget on ood. Grocery Outlet, agrocery store based in the western part o theU.S, developed the “$3-a-Day Program,” whichhelps amilies save money with a weekly eatingplan or $3 per person per day. Even i youdo not have one o these store chains in yourlocal area, you can visit their web site at www.groceryoutlets.com and download the 8-pagebrochure: “Feeding Your Family on $3-A-Day.”Tis publication includes recipes or inexpensivemeals and a weekly shopping list.

Coupons may help you save money.

According to a recent poll conducted by theConsumer Reports National Research Center,shoppers who use coupons and store-loyalty cards save over 10 percent a year on groceries,the equivalent o $678 a year. Coupons may help you to reduce your grocery bill, as long youremember to use coupons only or items thatyou will use. Te Consumer Reports survey alsoindicated that 73 percent o the participantsnd coupons in the weekly newspaper. Findingcoupons online is also becoming a commonpractice. Visit sites such as www.smartsource.com and www.womansday.com/coupons/ toprint coupons or grocery store items. You may also consider swapping coupons with riends andneighbors to nd the ones that you need.

Most of us may know that the cost of running ahousehold keeps increasing. Daily expenses such as foodand utilities may be taking a larger portion of ourincome each month. Below are some tips on how tosave on a few common expenditures.

Creditor Calls:

I you are getting callsrom creditors, please use the script we havedesigned or you. Tis will allow us to work more eectively with these creditors. I youhave lost your script, let us know and we willbe happy to resend it to you.

Contact Ino:

Have you movedrecently or changed your phone number?Please contact customer service to ensure wehave all o your updated inormation.

ax Debt?

I you owe money to theIRS and would like inormation on how to reduce your tax debts, please contactour sister company, Freedom ax Relie at1-800-455-6AX. Our tax attorneys andtax specialists are eager to immediately starthelping you resolve your tax troubles. Inaddition, existing FDR clients are eligible ora $100 reerral bonus i they reer someoneto Freedom ax Relie.***

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Client Reminders

We wantyourideas!

What do you want tosee in the newsletter? We welcome yourinput. E-mail yourideas to ino@pi.org.

s you prepare your taxes, you may discover several new tax law changesthat may help maximize your reund. Jackson Hewitt ax Service reports that morethan 100 new tax law changes have been passedthis year to help individual consumers. Below are a ew o the changes that may benet you.For urther details about your specic situation,contact a tax proessional. For more details onthese and other tax changes, visit the IRS website at www.irs.gov.

Recovery Rebate Credit:

axpayers thatdid not qualiy or the entire EconomicStimulus Payment in 2008 may beable to receive the remainder o theunds through this tax credit.Individuals that had a childin 2008 ater ling a taxreturn may also be eligible.axpayers that do qualiy orthe Recovery Rebate Credit will not receive a separatecheck, but the amount will beincluded in their reund.

Mortgage Debt Relie Act:

Accordingto the IRS, homeowners that oreclosed ontheir primary home can exclude the cancelleddebt amount rom their taxable income. Temortgage had to be the taxpayer’s primary residence and not exceed $2,000,000. Tehome loan also had to be used to buy, build, orimprove the home.

First-ime Homebuyers Credit:

axpayers who purchased a new home orthe rst time ater April 8, 2008, may qualiy or a reundable credit up to $7,500. Tiscredit is part o the American Housing Rescueand Foreclosure Prevention Act. It acts like areundable tax credit and works like an interest-ree loan. Te credit must be paid back in equalparts over a period o 15 years beginning in2010. In addition to rst-time home buyers, theIRS web site indicates that individuals that havenot owned a main home in the past three yearsmay also qualiy or this credit.

Unemployment deductions:

I you lostyour job in 2008, ask your tax proessional aboutitemized tax deductions or job search expenses. According to Jackson Hewitt ax Service, youmay be eligible to deduct costs associated withtravel, printing resumes, or job placement ees. I you were required to relocate or a new job, youmay be able to deduct moving expenses.

Assistance available or thoseunable to pay taxes:

I youdiscover that you will not be ableto pay your 2008 taxes, you may have options available. Te IRShas compiled a list o questionsand answers on their web sitethat deal with certain scenarios andnancial situations. Visit www.irs.gov/newsroom/article/0,,id=201853,00.htmlor more details. Due to the present state o the economy, some taxpayers may qualiy orleniency i they owe back taxes. According tothe IRS web site, nancially distressed taxpayersmay be eligible or suspended collection activity i they have a hardship case. For those unableto make a scheduled payment in an existinginstallment plan, the IRS may allow theindividual to skip a payment.

Disclaimer:

Tis article is intended to give abasic overview o tax changes that may be available to you. It is not intended to replace the advice o aqualifed tax proessional. We recommend that youconsult an experienced tax expert that may be able to help you with your individual situation.

Latest TaxChanges

Free File:

Free File Alliance companies will parcipate in the program run by the IRS and the Free FileAlliance, a consorum of tax preparaon soware companies. This program is available to taxpayers thathave an adjusted gross income of $56,000 or less. Each company sets its own criteria for who can use theservice. Visit www.irs.gov and click on the “Free File” link on the le hand side. You can then read therequirements and search for parcipang companies.

VITA:

The Volunteer Income Tax Assistance Program (VITA) oers free tax help to individuals with low andmoderate incomes (usually $42,000 and below). VITA sites are usually located at libraries, schools, andshopping malls. Call the IRS at 1-800-TAX-1040, press opon #1 followed by opon #5. Ask the customerservice representave for a VITA site located within your zip code.

TCE:

The Tax Counseling for the Elderly (TCE) Program provides free tax helpto people age 60 or older. For more informaon, you may also call the IRS at1-800-TAX-1040, press #1 followed by opon #5. AARP also oers the Tax-Aidecounseling program for elderly individuals with low incomes. To locate the nearestAARP Tax-Aide site, call 1-888-227-7669 or visit the AARP-TaxAide site at www.aarp.org/money/taxaide/.

Tax Resources

Scammers hit consumers with small charges.

Te Better Business Bureauhas received reports rom consumers who have ound very small charges on their credit cardstatements, typically charges o 26 cents or less, rom a company identied on the credit cardstatement as “ADELE SERVICES 800-764-8104 NY.” When consumers have tried to dial thisnumber, they receive a message that it is disconnected. Some commentators on this scam havespeculated that these small charges are placed to veriy that the credit card number is good, andonce the small charges go through, larger charges will come next. Tis apparent raud schemeinvolves taking pennies rom millions o people, which would then equal a large sum o money.Te BBB strongly encourages consumers to immediately report unauthorized transactions,regardless o how small, to their credit card company and assure that the charge is removed. BBBalso recommends that consumers le a complaint with Better Business Bureau at www.bbb.org and with the Internet Crime Complaint Center at www.ic3.gov.

Lower credit lines do not upset most consumers.

Bankrate, Inc. (www.bankrate.com) recently released the ndings o a national poll which ound that 40 percent o consumerssay they would not be upset i their credit lines disappeared. In act, o the respondents who havecredit cards, nearly one-third (32 percent) say they will probably charge less in 2009. A muchsmaller group (only 5 percent) responded that they would be devastated with the loss o access totheir credit cards.

News, fnancial tips, and other inormation regarding personalfnancial reedom

InspiringThoughts

“NeverGiveUp...”

Credit Corner:

Bad Credit Card Habits!

s you strive to settle your debts, most o you have made a commitment to rely oncash instead o credit cards. Ater youcomplete your debt negotiation program, you will probably want to re-establish your credit. As you probably know, credit cards can causeserious nancial problems i they are not usedproperly. Periodically, this column will discuss acredit card issue and give you tips on responsiblecredit card use. Tis month’s topic is

bad credit habits to avoid

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Cash advances:

Tis may seem like aconvenient way to access cash, but the eesand interest rates are usually much higherthan actual purchases.

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Buy now...pay later:

I you can not aord topay with cash, try toavoid charging. You willeventually have to pay or it with interest.

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Charging necessities:

Food and gas may seem likesmall amounts to charge.I you pay your balance inull each month, it may help rebuild your credit.However, i you carry arevolving balance and use credit as a meansto make it through to next payday, smallpurchases may multiply over time.

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Applying or many credit cards:

When itcomes time to rebuild your credit, considerapplying or only one or two credit cards.Many inquiries in a short amount o timemay lower your credit score.

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Paying only the minimum:

Minimumpayments are designed to keep you in debtor a long time. I possible, only charge itemsthat you can aord to pay in ull each month.I you want to calculate how long it willtake you to pay o your balance i you only pay the minimum, consider using an onlineminimum payment calculatorsuch as one oered by Bankrate.com, an online nancialresource. Te calculator is locatedat www.bankrate.com/brm/calc/minpayment.asp.

Late payments:

You may incur late ees and be subject toan interest rate increase i yourcredit card payment is delinquent.Keep track o due dates and takeadvantage o online paymenttools.

s you may already know, overcomingdebt requires perseverance. At thistime, the road to nancial reedommay see like an endless journey. When youbecome overwhelmed with the daily struggleso debt, here are some ideas to keep in mind.

Don’t take the easy route.

On stressuldays, you may become negative and ask yoursel i it is really worth making all o these sacrices. At this time, you may betempted to just orget about your debt andspend your settlement payment on otherthings. Tis decision may make you happy or a short time, but in the long run, you will not eliminate your debt. Hard work andpersistence will benet you in the end.

ake baby steps.

Remember that yourdebt can not disappear overnight. You may constantly eel overwhelmed and it may seemlike you will never rise above your nancialsituation. But every dollar that you puttowards your outstanding debts will bringyou one step closer to your ultimate goal…nancial reedom.

Never give up.

Circumstances may betough at the moment. Collectors constantly call and leave annoying messages. You have to work a second job or volunteer or overtimehours just to make ends meet. A ew weekso this liestyle can easily make you want toreconsider your commitment to become debt-ree. Although you may encounter variousstressul situations, try to nd the strength tostay strong and never give up.

Motivate yoursel.

Discover ways to keepmotivated and do whatever you can to stay ocused on achieving nancial reedom. Seek support rom amily and riends. Rewardyoursel when you accomplish goals or wheneach account is settled. I it works or you,try reading inspirational books or quotes.Te ollowing book entitled,

Letting Go o Debt: Growing Richer One Day at a ime

by Karen Casanova oers daily meditations aboutdealing with the struggles o debt.