Financial literacy is the ability to understand finance. By definition it is an individual’s ability to make informed judgments and effective decisions about the use and management of their money. National Financial Literacy Month is recognized in the United States in April to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits. In 2000, The Jumpstart Coalition for Personal Financial Literacy began promoting April as Financial Literacy for Youth Month and in 2003 the United States Congress showed its support.

The root problem and cause of many financially challenged and “debt heavy” individuals usually stems from credit card abuse. The ability of many American families to live beyond their means can create an out of control debt situation requiring special assistance from creditors. These programs are available through reputable credit counseling companies and should be evaluated before last resorts like filing bankruptcy. Through education and responsible use of credit – FINANCIAL LITERACY – Unmanageable credit card debt can be avoided.

Many of the country’s financial institutions and non-profit financial educational organizations promote this month by holding promotional events and creating educational materials that center around effectively handling money and dealing with credit card debt.

Most of these financial companies can assist consumers with Financial Literacy in an array of courses on budgeting, using credit cards wisely, and savings strategies for credit cards. Upon course completion of the Financial Literacy Program, the names of participants are submitted to the American Center for Credit Education to be included in a national database accessed by creditors and lenders.

A New Horizon offers valuable information to the consumer each month with our “Financial Education Topic of the Month.” Such topics include “Becoming Financially Fit”, “How to Prepare for Tax Season” and “Homeownership vs. Renting.” To learn more about A New Horizon’s Financial Literacy programs and materials, please visit our on-line Learning Center or contact our Information & Education Department at 1 800 556-1548 x2222 or Stuart Lieberman who may be reached at (800) 556-1548 Extension 1126 or at slieberman@anewhorizon.org. A New Horizon Credit Counseling Debt Consolidation Services –http://www.anewhorizon.org for more information

Fort Lauderdale, Florida –With the new Credit Card Act in place what does this mean to consumers? Consumers may now see a return to annual credit card fees. Although the new Credit Card Law restricts certain fees, such as those charged for surpassing credit limits or paying credit cards late but there are plenty of other charges that remain fair game. We may start seeing credit cards ramp up additional fees. For instance, Fifth Third Bank last year began charging some cardholders $19 for not using their cards for 12 months. There is NO LIMIT to how high annual percentage rates can go. Some banks have raised interest rates to record levels weeks before the new laws went into effect.

According to CreditCards.com Weekly Credit Card Rate Report the national average interest rate on new credit card offers hit 14.62 percent. This increase in the interest rates was the highest since they started tracking in 2007. Six months ago the average was 12.7% and now it’s 14.6%.

Not only are the banks raising rates to restore the profits they might be losing, they have also started changing some of their card products to variable rates from fixed rates. Many of the largest issuers, including Bank of America and Chase, switched their customers over to variable rate cards in 2009.
Some other things you should know about the new Credit Card Act are:

• Late payments before the 60 day window will not increase your interest rates, but it will still show up negatively on your credit report.
• You should now open your credit card statements quickly and review them to keep abreast of new terms.
• Some of the credit cards may have deadlines that you must meet to opt in or out of to get certain terms.
• The new Credit Card Act does not cover Business and corporate credit cards.
• The Credit Card Act does not cap interest rates. The increased rate can still triple your existing APR.
• A rate increase can’t be applied to existing balances unless cardholder is delinquent.
• Cardholders must be notified of a rate increase 45 days in advance, but there is no cap on rates.
• Those under 21 can’t apply for a credit card unless they have a co-signer, sufficient income or show proof that they have an independent means to repay the card debt themselves.

With banks trying to use every loophole they can find to help their bottom lines, it will be the consumer who will still suffer. If interest rates have already increased and annual fees are reinstated, how will the consumers get themselves out of the financial hole they may be in?

A New Horizon Credit Counseling may be the solution and help with Debt Management, Budget Management and Credit Counseling. A New Horizon is a well established Credit Counseling company with over 15 years experience as a non-profit organization assisting individuals and families from all walks of life in both maintaining control and regaining control of their finances. This is accomplished utilizing Credit Counseling, Budget Training and a host of solution oriented programs and services to counsel and educate individuals on the responsible use of credit along with a structured debt management plan to assist them in paying off their existing debt. This is all offered in the strictest of confidence by certified financial counselors whose goals are to assist you in becoming debt free. Contact A New Horizon – http://www.anewhorizon.org for more information.

Debt Consolidation

A large number of consumers have a lot of credit card debt and bad credit. These consumers will have trouble fixing their debt problems on their own. This is where credit counseling can help. It is available across the country to help people confront their bad credit and debt problems. One thing to realize is NOT all credit counseling companies are the same. There are some steps consumers can do to find a reputable credit counseling company:

First, make sure a company’s counselors are “certified” credit counselors and second, you can talk to the Better Business Bureau, state attorney general and local consumer protection groups that receive complaints against credit counseling agencies and make them available to the public. If the credit counseling company has many complaints that are unanswered or unresolved then staying away from them would be a wise thing. Third, ask the payment structure of the debt program; it is important to ask what the program will cost you in fees, and to ask questions to make sure payments get to creditors on time.

Consumers should beware of open promises like: we CAN lower monthly payments 60% and we CAN remove items from your credit report. Reputable credit counseling companies will NOT make these claims. When
selecting a credit counseling company be sure that the company offers financial literacy including teaching you budgeting techniques and providing financial education to assist consumers with the goal of getting out of credit card debt.

Post holiday blues setting in? You now have to wait for the results of the “festival of spending” spree that you may have gone on. This can be a frightening feeling. Once all your bills arrive, what should you do?
Simply set them out on the table, then you can sort and classify them in several different ways. You can sort your bills by the highest balances OR you can sort by the highest interest rate and decide for yourself based on how much you can pay at a time, what is the best way for you to approach your credit card repayments. The highest interest first may be the best way to start unless the highest interest card is the lowest balance you have. Look over each bill statement and try to figure how much a month in charges it will accrue.

Stephen Marcus, Founder and President/CEO for A New Horizon Credit Counseling Services, Inc., a national credit counseling agency offered that, “One also can’t forget the stressful effects that are associated with carrying significant amounts of debt and the toll it takes an individual’s performance, emotional well being, one’s physical health and even one’s relationships.”

Once your credit card bills have been sorted you should list them in order of importance of who should get paid first. ALWAYS make the minimum payment on all the bills and apply extra money to the one that is first on the list and then work your way down on your list. You should try not to deviate from the financial plan that you have scheduled for yourself.

You can also cut back on some things that you typically spend on until you pay off all your holiday debt. Some things that you can cut back on are as follows:

-Dining out (or use coupons offered by local restaurants)

-Use more coupons for shopping for groceries

-Buying coffee every morning (bring it from home)

-Buying snacks and sodas (bring it from home and store at your desk)

-Don’t go out to movies and sports events

-Adjust your thermostat when you’re not home (use an automatic timer)

-Car pool if you can to save gas or take public transportation

As you sit and look back on your total spending for the holidays, maybe you should consider how much better you would feel without that extra financial burden. Start creating a holiday budget plan for next year. Each week put a little away so by the time the holiday season comes around again you will have your gift shopping money and hopefully will not have to use your credit cards again.

Mr. Marcus also stated, “Karen Peterson, a columnist for USA Today wrote, “To some people, money means power; to others, love. For some the topic is boorish, in bad taste. For others, it’s more private than sex. Add family dynamics to the mix and for many you have the subject from hell” (Peterson 1992).

Since money is such a taboo topic in our society and so difficult for many people to talk about, it is no wonder that finances are the source of much marital conflict. This is why consulting with objective professionals is highly recommended. Start the new year off right.”

If you would like more information on Credit Counseling you can contact A New Horizon Credit Counseling Services who may be reached at (800) 556-1548 or slieberman@anewhorizon.org A New Horizon Credit Counseling Services www.anewhorizon.org

it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 balance on a credit card with an 18 percent annual rate. Interest rates increase if students fall behind on the debt, which in turn makes it more unlikely that the student can repay their credit card debt.

A New Horizon Credit Counseling has a solution with their Financial Wellness Plan that will assist students to restructure their debt based on their income and other factors. We can assist the human resource dept and guidance counselors to help these students who have credit card debt. Many of these students don’t know where to turn to for help. Our nationally recognized Financial Literacy Program offers an array of courses on budgeting, using credit wisely, and savings strategies for debt challenged consumers.

In addition, a New Horizon offers valuable information to the student each month with our Financial Education “Topic of the Month”. Such topics include “Becoming Financially Fit”, “How To Prepare for Tax Season” and “Homeownership vs. Renting”. To learn more about A New Horizon’s financial literacy programs and materials, please visit our on-line Learning Center or contact our Information & Education Department at www.anewhorizon.org.

Clearly, the danger to co-signers is they now have an obligation to pay balances not paid timely or unpaid by card holders. In addition, it is unclear what time limitations the co-signers will ultimately be obligated for. The Federal Reserve has not released final language on these timelines as yet.

An alternative to this would be to enroll “credit challenged” young men and women in a reputable Credit Counseling Service program. A credible Debt Management firm will offer many programs including, Financial Literacy Training, Budget Management and a host of other programs to counsel individuals with a free budget analysis and a structured debt management and repayment plan to assist them in realistically paying off their existing financial obligations in full. Enrolling early will provide education and counseling on how to properly manage credit and provide best practices for placing anyone on the road to financial freedom. A New Horizon Credit Counseling has seen credit scores increase when individuals enroll in Credit Counseling Programs and will ultimately lead to “credit responsible” young adults who are now educated on how to use credit RESPONSIBLY.

If you would like more information on Credit Counseling you can contact A New Horizon Credit Counseling Services who may be reached at (800) 556-1548 or slieberman@anewhorizon.org A New Horizon Credit Counseling Services www.anewhorizon.org

• Making late payments can decrease your score between 60 and 110 points
• Maxing out your credit card or exhausting your credit limit can decrease your score between 10 and 45 points
• Negotiating DEBT SETTLEMENTS with creditors can decrease your score between 45 and 125 points
• Filing for bankruptcy can decrease your score between 130 to 240 points

Understanding what affects your credit score is important and how that impacts not only your ability to get credit in the future, but how much you now may pay monthly because it also causes your interest rate to adjust.
In order to avoid situations that negatively affect your FICO credit score you may consider talking with a reputable Credit Counseling Service company. “The circumstances identified by FICO that can damage your credit score; all can be avoided by receiving credit counseling and employing a structured debt management plan. The debt management plan will ensure that you maintain on-time payments of your obligations while you systematically reduce your debt; all of which translates to an improved FICO score” says Steven Stark, Chief Operating Officer and General Counsel at A New Horizon Credit Counseling Services in Fort Lauderdale Florida.

At the end of the day, it is all about protecting your credit score and not allowing monthly payment s on credit cards or mortgage loans to increase or even worse, losing your ability to get credit.  “If your FICO score improves by using a debt management plan, the money saved because of the higher score can be used to repay your debt that much quicker” added Stark.
If you would like more information on how credit counseling may help your FICO score contact us at (800) 556-1548 Extension 1126.  A New Horizon Credit Counseling

The underlying reason for these homeowners to be in default stems from a host of credit problems resulting in an unmanageable debt situation. Homeowners may be living outside of their means in addition to carrying too much credit card debt. Consequently, they are unable to pay their bills and, in turn, they default on their mortgage.  This new program may help them get back on the right track financially.

Individuals and families may enroll in a reputable Credit Counseling Services Program and get professional advice from certified credit counselors who will properly asses their financial needs. Firms who will take a candid and honest look at a realistic budget based on their situations and advise them what programs or services best fit their needs. In this way the lender, Fannie Mae and Freddie Mac, will now have a fiscally educated renter who is now in control of their finances. This ultimately will lead to these renters becoming responsible candidates for home ownership in the future.

Mr Stark also stated. “These very same people have enormous unsecured debt in the form of credit card obligations, medical expenses, utility bills, etc. Credit Counseling with a well conceived debt management plan, tailored to the financial needs of the debtor, is absolutely necessary to see lasting relief for the debtor”. If you would like more information on Credit Counseling you can contact A New Horizon Credit Counseling Services who may be reached at (800) 556-1548 A New Horizon Credit Counseling Services

Become “Financially Fit” Make this your Resolution for the New Year!

When it comes to health, we all go for a medical checkup to see if were physically fit. The medical report tells us everything about our health. But, when it comes to wealth,
it is as important that we do a regular checkup for our financial health. We need to
know where we are financially before we decide what we want to achieve financially.

But, how do we determine our level of financial fitness?
financial freedom Easy! We can use financial statements to get a snapshot of our financial fitness. These are income statements and balance sheets.

If this sounds boring and alien to you, well, to be honest, the process is somewhat tedious as you need to dig out things and get them  organized in a proper way. But, we can tell you that once you’ve done this checkup, you will have a clear picture of where you stand financially and you can begin to take the necessary measures to achieve financial freedom!

And, what’s more, you’ll be in control of your money and know how to spend it more wisely!

CREDIT COUNSELING

Let’s get started!
Determining your Financial Fitness
Your Income Statement

First you can prepare an income statement. An income statement is also called a profit and loss (P & L) statement. This statement consists of two sections: monthly income and expenses:

Your income is comprised of salary, any rent you receive from real estate, dividends from stocks and bonds, interest from savings accounts, and any royalties you may receive.

Your expenses consist of food, clothing, utilities, car loan payments,credit card payments, home mortgage payments, medical expenses,entertainment, insurance payments, money you may give to charity, taxes you pay, and money that goes towards education.

List down your income and expenses into each section accordingly. Then, calculate your total income and total expenses.

Once you’ve done this, it’s time to calculate your net income. Net income is the difference between your gross income and expenses:

Net income equals gross income minus expenses

If you come up with a negative net income, it tells you that you spend more money than you make. You’ll have to make a plan to either reduce your spending or increase your income.

Your Balance Sheet

The next step is to prepare a Balance Sheet. Like income statements, balance sheets
also have two sections: Assets and Liabilities.

Assets are your cash, real estate, car, bank accounts, stocks and bonds, mutual funds,
retirement accounts, and businesses.

Liabilities include mortgages, credit card loans, car loans, personal loans, education loans, and taxes.

Prepare your own personal balance sheet by listing down your assets and liabilities. Calculate your total assets and total liabilities.

OK! Almost there! The next step is to calculate your net worth. Net worth is the difference between your total assets and your total liabilities: Net worth equals assets minus liabilities

Do the math! And, give yourself a pat on the back for coming this farwith this exercise! By doing this simple exercise, you are one step ahead of many, many people.
So, are you financially fit?

budget The new year is an ideal time for recommitting ourselves to things that are important to us. And what could be more important than being financially fit? And, what could be better than starting fresh in a new year?

Now is the time to set your goals.

Here are our picks for the most important resolutions for financial fitness in the year 2005 and beyond:

* If you don’t have a written budget, do one now! If you do have a budget, resolve to stick to it!
* Resolve to take advantage of your employer’s retirement plan, if one is offered where you work.
* Resolve to start a savings plan! As little as 5% of your weekly take home pay really starts to add up when it is put into an interest-bearing account such as a money-market or tax-deferred IRA.
* Resolve to get your credit cards under control! Think twice before whipping out the plastic at the cash register.
* Resolve to educate yourself about financial matters such as budgeting, the proper use of credit, and saving for special occasions and retirement. Learn all you can about getting it together financially. A New Horizon’s team of Certified Credit Counselors can provide you with information that can help you in every area of your financial life.
* Resolve to set and stick to your financial goals. You wouldn’t start out on a long road trip without a road map, so why attempt the road to financial freedom without a plan?
* Resolve to get starting NOW on the road to financial freedom!

This year, resolve to become Financially Fit! Like physical fitness,the effort you put into fiscal fitness is worth the sacrifice when you experience the outcome of Financial Freedom!

Credfit Card Debt

This new plan creates a tiered system that will qualify consumers for special programs (benefits) they would not otherwise qualify for. These new benefits essentially lower interest rates and minimum payments, waive late fees and sometimes re-age accounts bringing them to a current status. This new plan allows individuals to repay debt obligations in a manageable monthly program and ultimately bring balances to zero.

Many financially strapped families struggling to avoid bankruptcy, who before were not eligible for a Debt Management Plan under the former stricter criteria, will now qualify for debt management programs due to “hardships”. Under the new program, following the new criteria, a debtor may qualify for either a 1.75 percent monthly repayment rate or a 2 percent monthly repayment rate depending on each individual’s situation.

“We’ve always had a “hardship program in place” says Stephen Marcus, Chief Executive Officer of A New Horizon Credit Counseling Services in Fort Lauderdale. “The problem was that it was difficult to get creditors to recognize the value of our hardship programs, but now, under public pressure and in today’s tough economic climate, they have embraced these new programs as a way to effectively assist the debtor in regaining control of their finances.”

Struggling individuals and families will have the opportunity to work with Certified Credit Counselors and create a realistic budget based on their individual situations. Based on the results, they may qualify for one of the tiered “hardship” programs giving them the ability to manage monthly household finances in addition to credit card debt. The plan makes repayment of debt more affordable and more realistic in today’s economy and allows more debtors to avoid bankruptcy.

The credit cards participating so far in this new program are American Express, Bank of America, Chase Card Services, CITI, Discover Financial Services, GE Money, HSBC Card Services and Wells Fargo Card Services.

If you would like more information on this new “hardship” program or any information on how you may qualify for any debt management plan. Please contact A New Horizon Credit Counseling Services who may be reached at (800) 556-1548 A New Horizon Credit Counseling Services http://www.anewhorizon.org