During these unsettling times, many of us watch everyday as the stock markets fall (seeing all time record losses in some cases) and while we may not all be stock brokers, it seems simple enough to understand that some of our investments may not be looking their best right now. But what should we be doing about it right now? Should we all sell, sell, sell, before it is too late and our investments are worth nothing, or should we stick it out and hope for the best? The best thing to do is to “not panic”, according to Michael McAuliffe president of Family Credit Management Services.

Here’s what to remember:

Don’t panic about your retirement plan, especially if you are younger and have a long career ahead of you. There will be plenty of time for your stocks to regrow and if your company matches a portion of your retirement contribution, you are already getting a return right away (especially if your company matches 50-100%). If you are further along in your career and don’t have that much longer to go before retirement, now is the time to take a look and make sure you have safe investment in things like CDs and bonds. Credit Counselors also warn you to make sure that you are diversified and don’t have all your eggs in one basket, regardless of age.

Your bank account should be safe too. Even if your bank fails, the government will insure up to $250,000.00 of your money. If your mortgage lender goes under and is bought out by another entity, they cannot change the terms of your mortgage.

According to Credit Counselors, Americans get more and more in debt each year due to bad spending habits. It is hard enough just paying for the necessities these days but that is not where the true struggle is. We have fallen into the habit of wasting money. Most of it we do not need, but just want. Here are some tips to stop the urge to splurge and start saving.
1. Make a list and stick to it. While shopping, buy only what is on your list!
2. Limit your trips to wholesale stores. Don’t buy in bulk unless you have a secret hiding place for stuff, because buying more will only make your family use more of the stuff you buy. For example, if you buy a case of cookies, your kids will just eat more cookies.
3. Don’t use credit cards irresponsibly. They should not be used if you can’t pay off the balance right away.
4. Avoid home shopping channels, buying online and catalogs. All of these increase the temptation to spend carelessly.
5. Don’t go window shopping when you are bored or sad. You may end up buying more than the window!
6. Set limits. If you are going to buy a car, electronics or an appliance, set a dollar limit and stick to it!
7. Say no to the extended warranty. These rarely pay off and the manufacturer’s warranty is usually good enough.
8. Buy generic and clip coupons.
9. Sometimes buying name brand is good, because you get the quality, like tennis shoes or tools, but again, set a limit. If there is a $50 pair of Nikes or Adidas and a $100 pair, settle for the $50 pair.
10. Cook large amounts of food at a time from scratch, as well as several different meals. Prepackaged stuff costs a lot more and it’s not as healthy. Freeze portions for meals later, during the week or when things in the pantry are scarce. This will also save time, and energy.
11. Grow your own veggies! Make a garden! Not only is it fun for the whole family, you can save a lot buy not purchasing them at an expensive grocer.
12. Avoid shopping with your wealthy friends or friends who shop like they are loaded! You might end up shopping the same way and end up buying expensive things you don’t really need.
13. Don’t bring your kids shopping. Kids can be distracting and may be able to talk you into buying them something they don’t need.
14. Always think practical whenever you are shopping and ask yourself if you really need it or not.
15. Make a budget and stick to it! Putting the numbers down on paper will show you just where all your money is going! Credit counselors say that a lot their clients are surprised when they see how much they are overspending on entertainment. Another common mistake when making a budget is forgetting to figure in emergency money, such as a trip to the doctor or car repairs and annual or seasonal expenses. The bottom line… plan ahead! For tips on budgeting click here.

Many seniors are struggling today due to the rising costs of food and medical supplies. Furthermore, people are living longer which means they have to stretch their retirement savings even further. Thankfully, some public benefits may be able to help.

Area Agencies on Aging (AAA)

Each state has made information available to the public for “area agencies on aging.” Such agencies can offer information on (or assistance with) transportation, in-home care, legal protection services, education and recreation. You can find local agency contact information at www.eldercare.gov. Credit Counselors have found this resource very helpful in meeting the needs of seniors.

Supplemental Income

According to credit counselors, many people who qualify for Supplemental Security Income (SSI) are not receiving it. This program provides monthly cash payments to low-income individuals aged 65 or older. In order to qualify for this program, an individual must have less than $2,000.00 ($3, 00.00 for a couple) in savings. To find out if you or a loved one qualify for SSI, visit their website at www.ssa.gov.

Health Care Costs

There are also programs available to seniors that can help with medical expenses. You can search for the latest information on “Medicaid” and “Medicare prescription drug coverage” at www.aarp.org.

Property tax relief

Most states have more than one property tax relief program for senior homeowners. In most cases, seniors can find more information on tax relief by contacting the local agency in which they pay their taxes.

Credit Counseling Agencies

Most non-profit Credit Counseling Agencies offer free budget counseling and educational resources. If you or someone you know is struggling, a Credit Counselor may be able to provide you with the information or resources you need regardless of age.

You may know a late payment or high outstanding balance can hurt your credit. However, what about shopping at a massage parlor, retreading a tire or visiting a marriage counselor? Credit Counselors warn (according to a lawsuit filed by the Federal Trade Commission against card issuer CompuCredit) such activities can count.

The lawsuit against CompuCredit for using supposedly deceptive marketing practices gives us a very rare look inside the unclear business of credit scoring. It exposes formulas that higher authorities like politicians have long suspected exist (that buying habits, not just payment history, matters).

Mostly, the allegations are focused on CompuCredit’s Aspire Visa (a credit card for risky borrowers with a high interest rate). The FTC claims that CompuCredit didn’t disclose that it monitored buying habits and lowered credit limits if customers used their cards at certain places. Among these places are: tire and retreading shops, massage parlors, bars, billiard halls and marriage counseling offices.

According to the FTC, CompuCredit originally told their cardholders that they could use their credit cards anywhere and is seeking $200 million for the deceptive practice. CompuCredit has also been penalized in the past by the New York Attorney General and Credit Counselors suggest that consumers stay away from this subprime credit card.

CompuCredit defends its practices. “Every time a consumer accesses their credit, a new decision to extend a loan is being made,” says CompuCredit’s general counsel. “These scoring models are commonplace across the industry.” Credit Counselors suggest that with more and more companies following similar practices, it may be wise to use more discretion as to where you are using your credit cards.

If you are like most Americans you probably use an automatic teller machine (ATM) or your debit card quite often. Credit Counselors warn that there are many ways that thieves can steal cash or your personal information from you and now they are doing it directly at the ATM machine.

You may know that if a thief gets a hold of your PIN number they may be able to empty your bank account. But did you know that they can get it by tampering with the ATM machine itself? They are doing it with a device called a skimmer, which reads all the private information about your account that is stored in your card’s magnetic strip. Not only can the thief obtain your account information, they may be able to obtain your pin with some devices. Once the thief has this information, they can either produce a “clone card” or shop online until your account is run completely dry.

The skimmer device is usually attached to a legitimate ATM and the thief usually records the PIN number at the time of the transaction by using a secret camera or a keypad overlay that is touch-sensitive and placed over the actual keyboard. In some cases, the ATM itself may be a fake device placed by the thief. These are usually placed in out-of-the way locations or by a real ATM that the thief has placed an out-of-order sign on.

Credit counselors advise that when using the ATM, keep the following in mind:
• Use a familiar ATM, or one that is attached to your bank. Avoid using it around suspicious people.
• Check the card slot for signs of tampering. Don’t use it if the slot jiggles or anything else looks suspicious.
• If you see suspicious looking cameras, don’t use the ATM.
• Don’t use an ATM that has a sign attached to it.
• Use a well lit and familiar ATM at night.

As you are likely aware, household costs have increased tremendously since last year. Gas is up 21%, food 5%, and home energy 9%. Credit counseling agencies have been giving their clients some tips for saving on those daily living expenses.

Make a shopping list. Researchers find that making a shopping list and sticking to it will help limit impulse buying. Also, never shop while hungry or tired or you may fall to temptation. Your grocery store should have a list of goods that will be going on sale in the upcoming week. You can also subscribe to thegrocerygame.com, which will reveal sales that aren’t advertised yet. Stock up on the best deals!

Check for air leaks in your home. Use caulk, weather stripping and spray foam to seal leaks in areas like around windows and doors. Adding insulation can also save on your heating and cooling bills. Increase your heating and air conditioning unit’s efficiency by changing air filters every three months. Credit Counselors advise to save on electricity by changing your light bulbs over to fluorescent compacts as they burn out. Some appliances use electricity when you aren’t using them. Devices with standby power like TVs, stereos and DVD players should be plugged into a power strip so you can turn them off all at once.

Make sure you aren’t spending on needless costs. If you have a credit card and have always paid on time but it has a high interest rate, try getting it lowered because you have been a good customer. You can try a similar approach with your insurance company but instead, shop around and see if you can get a lower premium. If you don’t use all of your cell phone minutes, change your cell plan.

If you need budget help, most non-profit Credit Counselors would be happy to assist you at no charge.

First of all, reverse mortgages are not meant for everyone and according to Housing Counselors, should not be used unless it’s a necessity.

Essentially, this loan is borrowed against your home’s equity and is paid out in a lump sum or in monthly installments to the homeowners. The amount of a reverse mortgage that a homeowner can qualify for depends on factors such as the age of the youngest homeowner (the older that person is, the more they will qualify for), and the home’s equity-value. A major problem that can arise while applying for a reverse mortgage is that both homeowners may not be over 62. Housing Counselors warn that there have been cases where the younger homeowner takes their name off the mortgage so that they can qualify for more money. This is not recommended because the younger homeowner may lose the home if the older owner dies.

Factors considered for a reverse mortgage include, you are 62 or older and have equity built up in your home. This type of loan is very costly and should only be used if you are home rich but cash poor or are struggling to meet your monthly expenses. It is not recommended that you take out a reverse mortgage for gifts or vacation. A reverse mortgage may be more necessary to help with the rising costs of food, drugs and other household expenses that according to a study taken by AARP, has contributed to a surge of bankruptcy filings by the elderly. This study found that from 1991 to 2007, there was an increase of filings equaling 125% for people aged 65-74 and 433% for people aged 75-84.

While reverse mortgages can help out certain people in certain situations, Housing Counselors advise to look into other options such as a home-equity loan before taking into account this very expensive type of loan.

Gas prices are high and consumers are feeling the pinch at the pump. With gas prices nearing $4.00 per gallon, credit counselors are urging you to save gas whenever possible.

You can try the following methods to maximize a tank of gas:

• Consolidate your errands and do whatever possible to limit your daily driving.
• Avoid aggressive driving. Rapid acceleration, speeding and hard braking wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.
• Don’t drive over the speed limit. According to experts, you can assume that each five miles per hour (mph) you drive over 60 mph is like paying an additional twenty cents a gallon for gas.
• In households where more than one vehicle is available, when possible make sure you choose the car that gets better gas mileage.
• Limit you car’s idle running time.
• Don’t use premium gas unless your car manufacturer requires it.
• You should also take a look in your trunk. Carting a lot of unneeded items around can cost you. An extra hundred pounds in your vehicle could reduce your mpg by two percent, depending on the size of your vehicle.
• Keep your vehicle maintained. Your car’s spark plugs, air filter, fuel injectors, tires and brakes can reduce gas mileage if they are not properly maintained.

Not only will some of these steps increase your gas mileage, but also they will help to make the roads a safer place.

Credit counselors warn not to charge your gas if you cannot pay off your card every month. This might seem like a temporary solution, but paying interest on already high gas prices is costly.

During hard times, you may find yourself in a position where you may have to face possibly foreclosing on your home. Foreclosure prevention counselors advise that this has become a very common situation for many Americans these days and unfortunately, it has caused a new trend among scam-artists.

Beware of foreclosure rescue scams! There are many fraudulent organizations posing as legitimate foreclosure prevention organizations. They claim they can save your home and further claim they have successfully been helping clients for many years. In many cases, the homeowners who respond to these con artists usually end up losing their home, resulting in the con artist walking away and pocketing the equity.

Always use caution when searching for companies which claim to provide foreclosure assistance. Do not work with an agency who:

• Asks for an up-front fee before providing you with any services.
• Tells you to send a mortgage payment to them (you should never send payments to anyone other than your lender).
• Asks you to sign your house deed over to them.
• Is pushy or rushes you into filling out and signing loads of paperwork.
• Guarantees they can save your home before reviewing your situation.
• Cannot clearly explain the steps to be taken to save your home.

On the other hand, there are many agencies that can truly help you save your home. If you decide to go with a foreclosure prevention agency, housing counselors advise you to carefully research the company. Look for a reputable agency which does the following:

• Offers a free initial consultation to go over your unique situation.
• Takes the time to fully explain the process.
• Shows an honest success rate and does not claim to be 100% successful.
• Is registered with the Better Business Bureau and has a good record with them (click here to visit the Better Business Bureau).
Although it may be difficult to make sound decisions due to stress while facing a foreclosure, it is important to use extreme caution! Housing counselors advise that picking the right agency can make the difference between saving and losing your home.

When it comes to budgeting, credit counselors often advise to plan ahead.

There are many costs that are not necessarily considered monthly expenses that you may be forgetting to include in your monthly budget such as car maintenance (including city and plate license), car insurance, school clothes, school supplies, insurance premiums and taxes. These costs might only come up one to four times yearly. These may be large one-time expenses that may not be included in your balanced budget, which is why it is important to start saving now. To budget for such accounts, take the total estimated cost per year, divide it by 12 and set aside that amount monthly so you are ready or in a better financial position to pay them when they are due.

Then there are unexpected costs that may come up immediately such as car repairs, medical bills, and home repairs. These are more difficult to estimate, but equally important. In the event these saved funds are not needed, you can apply this to a high interest credit card.

If your budget allows, it is a good idea that you prepare for unexpected costs and loss of income. Credit counselors advise that you have three to six months of income set aside in an emergency fund.

If you have had trouble saving up for an emergency fund, you may want to consider putting away this year’s tax return. In addition, don’t forget about that extra stimulus refund you may be receiving later this year. It might be tempting to spend that extra money right away, but you may want to consider saving it. Credit counselors advise that the absence of an emergency fund can be a critical financial error and you will be thankful it is there if it is needed.