Here’s what I love about the Fair and Accurate Credit Transactions Act (FACTA) of 2003: it allows us to stay on top of our finances free of charge. Now here’s what I don’t love so much: too many Americans don’t know how important checking their credit report is!

What is a credit report?

Basically, it’s a record of your life as a borrower and includes information on your credit card accounts, car loans, home loans and more. Lenders of all sorts report information about you as a borrower to the three major Credit Reporting Bureaus (Equifax, Experian and TransUnion) and those bureaus compile a report for every citizen.

Reports include information like age of accounts, late payments, interest rates, etc. Many lenders calculate your credit score largely based on the information in your report.

Beware the Scams

FACTA outlines that every American is entitled to one completely free credit report each year from each of the three bureaus (which means three reports per year). The only Web site where you can take advantage of this is www.annualcreditreport.com. Other sites with catchy names offer “free” reports, but come with hidden subscriptions and costs that you don’t need.

How to Get the Facts on Your Credit

• First, either visit the site above, call 877-322-8228 or send away for a report by writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. This Fair Trade Commission site has more details.

• Choose to view one of your three credit reports (from Equifax, Experian or TransUnion). I like to look at a different one every four months – that way, I have an idea throughout the year of where my credit stands.

• Check all the information on the report against your records. If you see any inconsistencies, follow the directions on the Web site or the forms to file a complaint.

Staying on Top of Your Credit Report

Mistakes on your credit report can harm you – inaccuracies can lead lenders to charge you higher interest rates or even deny you loans you would otherwise qualify for. Plus, checking your report regularly is one of the only ways you’ll know if someone has tried to steal your identity.

It’s especially important to keep up with your report after you file bankruptcy. Make sure that creditors aren’t still dinging your report for debts that were cleared long ago.

Checking your credit is fast and free, so click on over to annualcreditreport.com and find out what your credit looks like.

Hopefully, you check your credit report regularly at annualcreditreport.com to make sure no one has stolen your identity and your lenders are reporting your information correctly.

But have you and your spouse both maintained individual credit activity since you’ve been married?

The Myth of Joint Credit Reports

If you and your spouse have joint accounts, actions from those accounts (both positive and negative) will appear on both of your credit reports – but there’s no such thing as a “joint” credit report.

That means that, unless you both have some individual accounts as well, problems could arise.

Why you need your own credit: When you try to open a new credit card, take out a loan, or even rent an apartment, lenders check your credit report. If you haven’t used any of your accounts in six months or so, your report will be empty and creditors will have no way to assess your risk as a borrower (which means they’re unlikely to lend to you).

Be prepared for the worst case scenario: In the unfortunate event of death or divorce, you could find yourself without an active credit history, which could translate to an inability to borrow money, rent a home, etc.

Avoid the headache: Untangling joint credit accounts after a divorce or separation can be enormously unpleasant – to tide yourself over until the loose ends are sorted, make sure you have some credit of your own.

Maintaining Active Accounts

Luckily, keeping your credit report active is fairly easy.

All you have to do is hang on to a credit card or two in your own name after you marry, and every few months charge small amounts on those cards.

Reports suggest that an account can go inactive in as little as six months, which isn’t much time considering how long it can take to build a strong credit history.

Then, when the bills arrive, pay them fully. This will ensure that you have consistent, positive actions on your credit report and, should you ever need to open a line of credit solo, you should be able to.

And, it’s important to remember to keep checking your credit score even if you are filing bankruptcy. Your credit may fully recover – or even go higher – in as few as two years.

Once upon a time, when we overdrew an account, our banks would charge a small Not Sufficient Funds (NSF) fee to deter us from repeat episodes.

But a study from the Center for Responsible Lending found that today, 69 percent of overdraft charges fall into the category of “abusive overdraft loans.”

This article explains the problem in detail, but here’s the short version of why this makes me so mad.

Excessive Costs

Most banks label abusive overdraft loans (A.O.L.s) as “fees,” meaning they don’t explain the charges in terms of interest. But…

• On average, every dollar you spend that leads to an A.O.L. costs $1.26 in charges – that translates to a 126 percent interest rate!
• Most banks reserve the right to manipulate the order in which they calculate your expenditures. So, if you make several small purchases throughout the day and one big one that puts you over your limit, they can calculate the big one first and charge you an overdraft fee for every other transaction that day.
• In 2004, new banking regulations allowed for checks you write to clear faster, meaning that money can fly out of your account more rapidly than ever.
• Banks are legally allowed several days to process any deposits you make to your account, even though that time is usually not needed nowadays, when most transactions are digital. This can mean that money leaves your account much faster than it enters.
• Many debit cards do not alert you at the time of purchase if you’re about to go over your limit – the bank will “cover” you and then charge you an A.O.L. rather than give you the chance to cancel a transaction.

Protect Your Money

So what’s a money-savvy lady supposed to do?

Ask for quicker deposits. Sometimes, just calling your bank to request faster deposits will get the job done – many banks wait the maximum amount of time allowed unless you speak up.

Link checking & savings accounts. Many banks offer connected accounts so if you go over your limit, your own money can cover you.

Read the fine print. Make sure you know what your bank account agreement says, and question anything you don’t think is right (like processing charges in an order other than the one you made them in).

Ask for alerts. Some banks will let you know if you’re about to overdraw account – ask yours for a service like this!

I can think of much better ways to spend my hard-earned money than abusive overdraft loans, and I’m sure you can, too. Hopefully, this will help you avoid them.

It’s important to minimize the amount you spend on fees and penalties. These are the financial equivalent of burning money. Keeping these in check can help you avoid getting caught in a dangerous cycle that can lead to filing bankruptcy.

Two of my favorite things are saving money and going on vacation (last big trip: London and Liverpool, England in December). With a little bit of planning, you and your family can do both. The secret? Plan, plan, plan.

Start with a Budget

Get the family involved in deciding how much money you can comfortably spend on a vacation. Many experts suggest opening a savings account specifically for the trip – that way, you won’t be tempted to use the funds beforehand. Once you’ve got the magic number, the fun can begin!

Divide and conquer: Divide the cost of the vacation by the number of weeks remaining. This will let you know how much to set aside each week.

Get the kids involved: Put a “vacation jar” in the house and encourage the whole family to contribute. (Bonus: this will help teach your children the importance of saving for major purchases.)

Consider a contest: If your family thrives on competition, consider having a race – parents against kids, for instance – to see who can set aside the most spare change each week.

Hit the Books

As you sock away funds for the trip, start looking for ways to stretch your money. The good news about a rough economy is that most people are willing to bargain with you – take advantage of that!

Book in advance: Flights and rentals are generally cheaper when reserved ahead of time. If you reserve something well in advance, ask for an early-bird discount (the worst anyone can say is no!).

Hunt the bargains: Visit the library’s travel section, your destination’s Chamber of Commerce, the Internet and anywhere else that might offer you discounts on attractions or lodging. When booking, ask about discount offers.

Check out a map: Knowing where to find a grocery store, ice cream stand, movie theater, etc. will help you avoid driving around and burning excess gas (which will save you cash).

Pack the important stuff: On the road, food, allergy meds, band aids, and other needed items can come with hefty price tags. Pack snacks, sandwiches, and other essentials in the car to save you from dropping dough where you don’t need to.

Leave Yourself Wiggle Room

Surprise! Sometimes, it’s a good idea to splurge. Spending a little extra and booking lodgings with a kitchen, for example, can save you food costs; getting a place near attractions can save you on gas.

So, juggle the numbers a little and see what makes the most sense. And with a little planning, you can have a dream vacation with filing bankruptcy.

Are you living paycheck to paycheck or just struggling to make it each month?

Don’t make risky moves when you’re finances are vulnerable. Below are some common mistakes people make when they’re scrunched for cash:

Tapping your retirement account: Although that big chunk of money may be tempting, resist the urge to take money out. Many withdrawals from retirement accounts are heavily taxed, which means you’ll lose serious long-term money.

Ending retirement account contributions to “save” money: If your employer matches your contributions, failing to put money away in a retirement account means you’re essentially giving yourself a pay cut. Not pretty, huh?

Taking out a payday loan: The promise of instant cash may seem appealing, but think twice before walking into a payday lender or a cash advance store. These short-term loans typically come with sky-high interest rates and can lead to devastating cycles of debt .

Getting a credit card cash advance: Like payday loans, these can come with obscene interest rates and many cash advance offers come with your regular bill. Often, interest rate and fee information appear in tiny print, so you’re unlikely to realize how much a few extra dollars is costing you.

So What Should You Do if You Need Cash to Pay Bills?

Consider borrowing from a friend. If you’re in need of emergency cash, a friend or family member may be able to lend you cash to get by.

But be careful—if you’re experiencing a more serious financial situation, like you owe a lot of debt or you’ve recently lost your job, it can be dangerous to your relationships to borrow if you can’t pay them back or will have to keep asking them for help.

Consider filing bankruptcy. If you’re truly unable to make ends meet, bankruptcy may offer you the breathing room you need.

If you file for bankruptcy, you may be able to protect your retirement account while getting the rest of your finances back on track. A bankruptcy lawyer can help you better consider this option.

There’s a foreclosure crisis, in case you didn’t notice.

Maybe you haven’t seen your neighborhood become a ghost town yet, but you’ve probably noticed your home is not worth what it used to be–it may not even be worth the money you owe on your mortgage.

The crisis affects us all.

Help for Homeowners

No one plans to become a distressed homeowner.

There’s a bill circulating in Washington and it could help many homeowners keep their homes.

It’s been passed in the House and is now being brought for a vote in the Senate, but some Senators are resisting the bill, essentially slapping struggling homeowners in the face–thanks to the diligent work of banking industry lobbyists.

Surprise: The Banking Industry Doesn’t Want it Passed

The banking industry lobby doesn’t care if you get to keep your home. In fact, it would probably rather you lose it than damage the mortgage industry’s bottom line.

Somehow, the industry believes it would lose more money by allowing homeowners to pay their mortgages than by continuing the expensive process of foreclosing on the homes and attempting to resell them in a bottomed-out and flooded market.

But S. 61, the bill that the lobby is fighting so hard to bury, would correct a flaw in the U.S. Bankruptcy Code and allow bankruptcy judges to modify mortgages and help homeowners.

What the Bill Would Do for Homeowners

The bill would help millions of homeowners, even those who never file bankruptcy.

The thing is, bankruptcy courts have the power to modify secured debts – with one major exception: they can’t modify home mortgages. This bill would correct that; however, if the lobby has its way, it won’t see the light of day.

Breaking Down this Housing Bill

If bankruptcy judges could reduce the balance of and reduce the interest on home loans, many people would not lose their homes to foreclosure.

If the mortgage company knew a distressed homeowner could file bankruptcy and have the terms of the loan modified, they would likely be more willing to negotiate and restructure loans without the homeowner filing bankruptcy.

Bottom line: The industry does not want to be forced into playing nice with homeowners.

If you think it would be a good idea for more families to stay in their homes, consider letting your Senator know that you support S. 61.

The voices of the lobbyists are being heard loud and clear; now it’s time for Americans to speak up on the issue.

You Can Make a Difference–Contact Your Senator

Find contact information for your Senator and let them know where you stand.

You can also call 877-354-4958 to voice your opinion.

Spread the word!

If you’ve lost your job, struggling to make ends meet or considering filing bankruptcy, you’re probably on the lookout for ways to save money.

Whatever your motivation is to save, spending less without perceptible sacrifice is important. WebMD recently highlighted several ways families can save on grocery costs, yet still eat healthy foods.

Make a List

Plan menus for the week and make a list of what you’ll need. Although it is tempting to grab impulse buys at the grocery store, vow to stick to your list and your budget.

While planning your menu and making a shopping list, it can be helpful to check the newspaper for sale items and coupons. By comparing prices and shopping at the right places at the right times, you can save money on your total weekly grocery bill.

Think Healthy

A 2002 study published in the Journal of the American Dietetic Association concluded families that go on diets to lose weight also save money on their food bills.

Not only do dieters eat less, but the nutritious food they eat typically costs less. Junk food like potato chips and snack cakes offer little nutrition and are expensive. (I know it’s tough—I’ve got a potato chip addiction, so I really have to stay away from that snack aisle.)

Don’t Shop Hungry

Eating a light meal or snack before going grocery shopping can help you stick to your list and budget. If your stomach is growling while you peruse the aisles, you’re more likely to get off track.

Buy Local

Check your local newspaper to find farmer’s markets. You can save big on in-season produce that’s often organic and naturally delicious. When you get a good deal, consider buying extra and canning or freezing it for later.

Buy Only What You Can Use

Avoid wasting food by buying only what you can use or effectively store for later. Buying more than you need or can use can make for a very expensive compost pile.

Grow Your Own

Speaking of compost, you can recycle your yard and food waste into a nutritious soil amendment and plant your own garden. Consider growing your own tomatoes, beans squash, cucumbers, eggplants and other vegetables. Any extras can be canned, frozen, donated to a food bank or composted to feed the soil for next year’s crop.

Buy Generic When it Makes Sense

Sometimes buying generic products can help stretch your grocery dollar. Other times, it may be wasteful. If a product does not work as well as a name brand and you must use more to get the same results, there may be more inconvenience than savings.

Oh, yeah. The Debtress has had enough. Get ready for a short rant…

I’m tired of the bankruptcy stigma. In tough economic times like these, we can’t afford financial judgment.

It’s time for people to realize that bankruptcy isn’t for “slackers” or people who “want a free ride.”

Here are the common reasons millions of Americans seek bankruptcy protection:

Unexpected expenses: Whether it’s a major medical procedure, a natural disaster or an unforeseen car breakdown, major expenses can throw a person’s finances out of whack.

Income reduction: Particularly when the economy is bad, getting laid off or having even just a few hours cut can seriously cut into a person’s available funds.

Job loss: When a person loses their job, their whole world is turned upside down. Even if they were able to stay on top of their bills before losing their job, bankruptcy may now be the only relief for the bills that piled up after the job loss.

Injury or illness: It’s no secret that medical bills can add up quickly. Especially if you’re one of the tens of millions of Americans without health insurance, medical costs can mean serious problems for your finances.

Divorce: Stretching income that use to cover one household over two can cause strain – and that doesn’t even take into account lawyer and court costs.

Births or deaths in the family: Funeral costs, hospital costs, caring for a new child – we often don’t think of the price tag on these events because they’re so emotionally charged; but major family changes can hit the bank account hard.

Identity theft: Though laws are in place to protect identity theft victims, some still find that their finances cannot be salvaged and need to turn to bankruptcy.

Overextension of credit: This one may be a little more within a person’s control – but it can certainly make any of the others on the list worse.

Learn more about filing bankruptcy

So, let’s stop judging and let’s start dealing with our debt.

The House gave the green light for the housing act, which is hoped to help homeowners save their homes from foreclosure.

I applaud the House, as it passed legislation that supports the people of this country. It’s not perfect, but it’s a step in the right direction.

Banks and large corporations have been given enough. It’s time for the little guy.

Jim Puzzanghera wrote a great article in the Los Angeles Times that can give you some more information about the bill.

You can also read about how filing bankruptcy may save your home from foreclosure.

Every 13 seconds a foreclosure occurs.

Think it doesn’t affect you? Think again.

An increase in foreclosures can also mean:

• decreased revenue for city government
• spikes in crime
• increases in homelessness
• more weight on the struggling economy

You Can Help Stop The Foreclosure Epidemic

Judicial modification of mortgages in foreclosure could help folks save their homes.

Send an e-mail (it takes 15 seconds & it’s even written for you) and tell your elected officials that you want judicial modification of mortgages to be part of the housing crisis bill.

Don’t wait—word is that the bill is set to go to the House floor any day.
http://www.congressweb.com/cweb4/index.cfm?orgcode=nacba&hotissue=1

Filing Bankruptcy Can Also Stop Some Foreclosures

Did you know that Chapter 13 bankruptcy was designed to stop foreclosure? Learn more about filing bankruptcy…