Need to Build a Better Credit Report?

Your credit report is your financial reputation at a glance. It is a record of your bill paying habits, outstanding debt and available credit, the length of your credit history, types of credit used, and new accounts that you’ve opened. 

Your credit report can affect whether you will get a loan, the terms of the loan, your homeowner and auto insurance rates. It is used by employers to make hiring decisions and by landlords to decide if they will rent to you.  

To build a better credit report, you don't need a hammer and nails. The first thing you need to do is to know what’s actually on the report. If you haven’t already, go to www.annualcreditreport.com to get a free copy of your report from each of the three major credit reporting bureaus. The credit score does not come with the report, however. To see your score, you need to contact the three bureaus, Equifax, Trans Union, and Experian or Fair Isaac. 

Check the accuracy of the information you find there. Are there accounts that aren’t yours? Is there information that should have been removed? Correct any inaccuracies. 

The most important factor in determining your credit score (35%) is whether you’ve paid your bills on time. Consider having automatic payments made so that you don’t inadvertently forget a payment.

 Keep your credit balances low. Credit utilization is the second most important factor (30%). It is a ratio of your credit balance on each account to its credit limit as well as the overall credit use among all accounts to your total available credit. This means that you don’t want to max out any one card, while leaving another card unused as a spare, for example. Keep the balance on each card at about 25% or less. 

Closing an account could actually hurt your score. There are a couple things to keep in mind on this one. First, it will increase your credit utilization rate as was just discussed. If it raises the rate beyond 25%, leave the account open. You don’t have to use it—except perhaps for one small charge every now and then to prevent the issuer from closing the account due to lack of use. Second, length of credit history is another factor in determining the credit score. You may want to consider keeping one of your older accounts, even if it is one with a high interest rate. Again, you don’t have to use it. But if you do, charge only a small amount and pay in full when the statement arrives so you don’t have any interest charges. By paying the full amount each billing cycle, you will never pay a cent of interest. 

A fourth part of your credit score has to do with inquiries. Checking your report will not affect your score, whether it is you or someone else looking at it. What does affect it is applying for credit. If you’re buying a house or car, do your loan shopping within a short period of time and it counts as only one inquiry. It can vary, but about 30 days for a house or 14 days for a car. The inquiry won’t bring the score down a lot, maybe about five points per inquiry, but if you are in a borderline case, even those few points can count. 

You need to use credit to have a credit score. Use of cash or a debit card is not reported to the credit bureaus, so that cannot help improve your score. If you’re unable to get a credit card, think about getting a secured card. With a secured card, you make a deposit up front with the issuer. In return, you get a credit limit of the amount of the deposit or somewhat more. It looks like a normal credit card, but because of the high interest rates, charge only what you can repay in full. It should be used only to rebuild credit by paying on time not as another credit card. 

Another option could be to start with a gas company or department store card. They are generally not as difficult to get, but they also don’t count as much toward building a good report. Nevertheless, they may be a good place to start. 

The credit score is important when you will be applying for a loan. If it is not in a good place at the moment, start working on it now. It likely didn’t get there overnight, and it won’t magically improve overnight either. 

See the following resources for additional information on improving a credit report: 

• Building a Better Credit Report
• Raise Your Credit Score to 740
• Fair Isaac Company - Credit Education

Taking Inventory of Household and Personal Items

Suppose you returned home tonight to find a badly charred house. Could you recall each item destroyed in the fire? Would you know its value? Large items may be easy to identify – the refrigerator, TV, and sofa – but how about items like electronics, silver and china?

Although most homeowners and renters buy insurance to protect their personal property, far fewer take that extra step of making a complete household inventory. Why? "It takes too much time." "It seems like an overwhelming task." "Oh, I'll probably never use it." If you find yourself identifying with these excuses, stop and refocus!

How will you benefit?

1. A household and personal property inventory gives you:
2. a permanent record of the contents of your home and their value to verify ownership in case of a loss;
3. a quick way to determine what is missing or destroyed, especially if you have photographs of each room;
4. serial numbers for "theft-prone items" so stolen items can be identified easily;
5. a good indication that you have adequate insurance coverage; and
6. accurate estate-planning data.

Where to begin?

First, decide to take a household inventory. Then set aside a specific time(s) to do it. Make it a family occasion – don't think of it as a laborious task. For example, have your children help you find out the cost of replacing various items. Older children may enjoy taking pictures of items to be included.

Most insurance companies provide forms to help you record your household and personal items. You can purchase software, downloaded it from some free sites or you can develop you own.

Do your inventory room by room. Separate personal property into categories: for example, appliances, furniture, dishes, and linens. If possible, include the item's brand name on your inventory. Don't forget to inventory the garage and basement. Also think of items that may be in a temporary residence like a college dormitory or a vehicle that has tools used in your work.

1. Indicate how many you own of each item.
2. Record the serial number of each item when appropriate.  
3. Determine the year you purchased the item.
4. Record how much you paid for the item new. If it is an antique rocker your grandmother gave you, you should have it appraised. For less valuable, hand-me-down furniture, you may need to estimate original cost.
5. Determine and record the item's replacement cost. Often newspaper ads, mail order catalogs and websites can give you a good idea of current prices.
6. Photograph the room from opposite corners to capture most of the items in it. Then take close-up pictures of valuable or unique items, such as antiques, jewelry, coins, and stamps.

Quick and easy methods

Another method of taking a household and personal inventory is to make a video recording. You need not go out and buy one. Borrow one or rent one from a video store and rental business. You could even use your camera or phone if it capable of a video recording.

Before you begin, have; available each item's cost at purchase, the year purchased, replacement value, and serial number. You can then do the recording while giving this information verbally.

A third way to take an inventory is to do it on your computer, making it quick and easy to update.

Where do you keep the inventory?

Once you've done your inventory, keep it in a safe place away from home, like a safe deposit box at your bank. Update your inventory annually to keep replacement costs current and to add or eliminate items as necessary.

What if you don't do an inventory?

If you never get around to a personal and household inventory, be prepared to accept the consequences. If you have a loss and no inventory, the claim settlement will be much more difficult. The insurance claims adjuster is forced to rely on information such as receipts, cancelled checks, credit card slips, or tax records, many of which may also have been destroyed. Without that proof, you are likely to receive a lower settlement payment than expected, one that will not be enough to replace lost belongings. Even an incomplete inventory, however, than none at all.

It's your responsibility to take an inventory. Your insurance agent won’t check to see if you’ve done an inventory unless you have a loss to report. Look around your home now. Can you afford not to have an up-to-date household inventory?

For additional information

http://www.extension.org/pages/Household_Inventory

http://web.aces.uiuc.edu/vista/pdf_pubs/houseinv.pdf

Will the Free Credit Report Lower My Credit Score?

You may have heard that if you ask for your free credit report it could lower your credit score.

Asking for a credit report creates an inquiry on the report. While it is true that inquiries can lower your credit score, it is only for certain types of inquiries. There are two types of inquiries: soft inquiries and hard inquiries.

When you ask for your credit report, you’ve not actually applied for credit. You’ve only asked to see the report. This is called a soft inquiry. When the credit card company sends you an application, they have looked at your credit report to determine what kind of offer they may want to make. This, too, is a soft inquiry, and it will appear on your report so you can see who has asked to see it.

But once you send in that credit card application, it becomes a hard inquiry, and, at that point, it can lower your credit score.

Other types of hard inquiries include applying for a car loan or a student loan, pre-qualifying for a mortgage, and opening an account at the department store when they offer you that 10% discount on the merchandise you are about to purchase.

When shopping for a major purchase, such as a car, we encourage people to use the Rule of Three and shop around to compare at least three sources. But if applying for credit will bring down my credit score, how can I shop for credit? Good question. Multiple inquiries will lower your score. So do your shopping within a limited period. That way, it will count as only one inquiry on your credit report. Lenders expect you to shop around.

The scoring models take into account that the inquiries occurring within a 14 day window that are all from auto dealers or are mortgage applications are the result of shopping for the best terms and count them as one inquiry. Newer scoring models give you a 45-day window.
But, even though there have been three or more inquiries from lenders, because it was done in a limited amount of time, it counts as one on your credit report.

So getting back to your free report, you should be requesting it every 12 months from each of the three credit bureaus—Equifax, Experian, and Trans Union. Better yet, if you stagger them, you can get a free report every four months. Mark the dates on your calendar so you know when you requested the report and when you can request the next one.

To get your report, go to www.annualcreditreport.com. You can request the report online, by phone, or by mail. The easiest method is by mail. Online requests can be tricky for some people because of the security questions that are asked. If not answered correctly, the system kicks you out and it emails you a message that someone has attempted to access your report and you will have to wait two weeks to try again. Be careful where you go online to get the free report. Some websites offer a “free” report, but only if you sign up for their services at a monthly fee.

Nevertheless, I still find a lot of people who have never accessed their report. The importance of doing so is to find out if there is any inaccurate negative information there. Are there accounts indicated that you do not recognize? If so, someone may be using your identity to go shopping. In addition, the inquiry section within the credit report lets you know who has requested the report. If you’ve received an offer from a credit card company, it will appear as an inquiry on the report.

You can find out more about how inquiries affect your credit score at

http://www.credit.com/credit_information/credit_help/Credit-Improvement-Your-History-Searching-Credit.jsp

How would you like to pay for that: Debit or credit?

You’re making a purchase at the store and hand the clerk your debit card. The clerk asks you, “Debit or credit?” What do you answer?

If you answer “debit”, it becomes an online transaction and you’ll need to enter your PIN number. The funds will be instantly withdrawn from your account.

If you answer “credit”, it is an offline transaction and you’ll need to sign the slip as you might if you had used a credit card. An offline transaction is similar to writing a check and it will take a little while for the funds to be withdrawn from your account. Because of this delay, you need to keep track of your debit transactions in your checkbook register to prevent an overdraft charge or a refusal of the purchase. Simply checking on your current balance from the ATM machine is not reliable.

Merchants prefer a PIN transaction because they are charged less for the transaction by the bank. Banks, however, prefer a signature transaction because they get a higher fee from the merchant.

Why use a debt card? For many people, it’s more convenient than carrying around cash and it’s easier and faster than writing a check. If you’re carrying a balance on your credit card account, by using debit instead, you save on the interest charges that would have been charged. Some people use a debit card because they don’t trust themselves with a credit card. Using a debit card, however, does not affect your credit report and will not help build or repair your credit score. This is because it is regarded the same as a cash transaction and is not reported to the credit bureaus.

Most debit card fees have disappeared. Some still charge a small annual fee or transaction fee, especially for an online or PIN purchase. To avoid unnecessary or unexpected fees, know the policies of your bank when you sign up for the debit card.

If you overdraw on your account using a debit card you can incur an overdraft fee. Typically, your bank will cover your transaction for a flat fee of about $20 to $30 each time you overdraw your account. Your bank may offer overdraft protection. Under one type of plan, your checking account will be tied with your savings account. When an overdraft occurs, an amount to cover the shortfall will be transferred from savings into checking. You will still be charged a fee, but a smaller fee. A different plan is a line of credit. Under this type of plan, the overdraft is covered with a loan, and you are charged a fee as well as interest on the loan.

The standard practice in the past has been to automatically enroll you in the bank’s standard overdraft practices for all types of transactions when you opened the account. Under new rules passed recently, the bank must first get your permission to apply its standard overdraft practices to ordinary debit card and ATM transactions before it can charge an overdraft fee. In other words, you must opt in or agree to allow the bank to charge you the fee. What happens if you don’t opt in? The transaction will be declined, but it saved you the fee.

As a protection against fraud, errors or other losses, some merchants put a hold on your account when you use your debit card with an offline or signature transaction. These holds often result in overdrafts for people who carry a low balance in their checking account. Filling your car’s tank at the gas station, for example, may create two separate transactions. The first charge is to get approval or authorization from your bank for an estimated amount of the purchase, and the second one is for the actual charge or settlement. The amount placed on hold in the first transaction is not available to you until it is cancelled by the merchant which may be as long as 72 hours. Hotels may put on a hold for the entire estimated amount of the transaction. The amount of the hold depends on the merchant and the time as to when it is released varies by the bank’s policy.

Paying with plastic can be a convenience but it still needs to be done with caution.

For additional information on avoiding overdrafts, see http://www.federalreserve.gov/consumerinfo/wyntk_overdraft.htm.

Excited about your big income tax refund?

Maybe you shouldn’t be.

Often I hear folks all excited and giddy about the big income tax refund they just received. But is this really a good thing to get all that happy about?

The income tax refund is simply that—a refund. A refund of your own money. It means that more money was withheld from your paycheck than was necessary for your income tax obligation. Many people use this as a forced savings plan. That way, they feel that they will have a larger lump sum of money at the beginning of the year to use for a large purchase or to pay down debt. If they got the same amount within their regular paycheck, they might never have a savings account. They would likely spend it unwisely or it might just slip between their fingers and disappear.

There are several reasons, however, why the big refund may not be the best choice.

First, you have a smaller regular paycheck. There may be times through the year when you need these funds, but, until you receive your refund, you have no access to them.

Next, you’ve made an interest-free loan to the IRS. When it’s in your own savings account, at least you will receive interest on it. In your IRS savings account, you get no interest. As pitiful as savings account interest rates are these days, at least you got something.

If you think that it’s a good idea to use your refund to pay down debt once a year, think again. What about all that interest that was accumulating on that debt? That credit card balance of $4000, at an 18 percent interest rate, that you paid off with your income tax refund could be costing you $720 in interest charges. Surely, you could find a better use for that $720.

The large refund can be an indication of poor or non-existent financial planning. You have no access to those funds over the course of the year to use for emergencies or other immediate needs. If you are unable to resist spending the additional money in your paycheck, consider having an amount automatically transferred from your checking into a savings account. Out of sight and out of mind. You have your savings account and you still have access to it, if necessary, and you got at least some interest on those funds.

The large refund can be an indication of poor or non-existent tax planning IRS Form W-4 Personal Allowances Worksheet can be used to adjust withholding from your paycheck. Those who are self-employed can make estimated quarterly payments based on what should have been paid last year. The worksheet for Form W-4 and instructions for estimated taxes can be found at http://www.irs.gov/.

But you may not want to end up owing income taxes. What if you have other sources of income such as interest, dividends, or other non-wage income on which income taxes have not been withheld? If you don’t want to have a payment due, you can back off on the number of personal allowances claimed on the Form W-4.

You are not paying any less in income taxes by having more withheld from your paycheck. Whether you opt for the bigger paycheck or the bigger refund, your total tax obligation remains the same. You can get the money in your regular paycheck or wait and get it later. The choice is yours. Which would you rather do?

Saving Money In Small Ways

Many families continue to experience economic challenges. Regardless if your income has dropped or not, everyone appreciates finding ways to save money. Saving money includes spending less money as well as not actually spending any money. Look over the list below and see if there might be some tips for you to save money in some small ways:

• Reduce your medical expenditures by practicing healthy habits like exercising and eating nutritious snacks and meals.
• When possible request generic equivalents of prescription drugs. Determine if your prescription qualifies for a 90-day rather than 30-day refill. This can often save money as well as the cost of visiting the pharmacy and risking making impulse purchases.
• Visit local farm markets and consider buying quantities of fresh produce that can be frozen. Visit the farm market at the end of the day as you may also be able to negotiate a bargain.
• When eating out, look for “early bird specials” and restaurant discount coupons. Many small restaurants place coupons in the weekly localized papers to help support their community.
• When visiting yard sales, flea markets, and small retailers, try negotiating lower prices. Ask “Is this your best price?” or “Are there any discounts if I…… (buy more than one thing) or (spend x number of dollars). You might be surprised by the response, saving you money.

For other tips I suggest you visit http://njaes.rutgers.edu/ for more saving and spending tips under the "Small Steps to Health and Wealth created by Barbara mcNeil and Karen Ensle, Rutgers University Extension faculty.

Since we are talking about saving money in samll ways, think about your children and their money management skills. Unfortunately, no one is born with “money sense.” We learn about money by example and experience, beginning at an early age. Parents have a major influence on how children learn about money. For example, when playing store with my two year old grandson he knew I should pay for my “groceries” with a credit card. When and how did he learn that? Could it be that he watched his mother and grandmother make purchases?

Many high school kids will soon be getting out of school along with thousands of college students all with one thing in mind - making money. With that in mind, many will also be getting their first credit card. wWth a debt or credit card in hand it is too late to start teaching them how to manage money.

Parents, grandparents, or the primary adults in a child's life can begin teaching the basics principals as soon as a child can understand that money is needed to buy the things he or she enjoy. If you shop with a grocery list, encourage the child to help add to the list. Making a list helps you spend less money and is a good money saving practice. When you go to the bank to deposit money in an account, let the child add a dollar or two to their own account. Use your positive modeling behavior to leave a favorable money management impression on your child.

Much of what children learn about money is from observing the adults in the family. They will also pick up values, attitudes, and money habits by watching and listening. Remember, you pass along money habits and decision-making styles without saying a word.

Does Your Credit Card Statement Have a New Look?

Have you noticed a difference in your credit card statement this month?

It will have a new look as a result of the new disclosure requirements by the Federal Reserve that went into effect February 22, 2010. It will include information on how long it can take to pay off your balance if you make only the minimum monthly payments.

Did you realize that if you’re carrying a $6,000 balance on your credit card account with an 18% APR and 3 percent minimum payment, it can take you 17 years to pay it off when you make only the minimum payment? And that’s only if you make no additional charges.

Suppose that describes your account right now and last night you felt too tired to get dinner so you ordered a pizza delivery. By making only the minimum payment on your credit card, it will take you 17 years to pay off that pizza! After 17 years, where is that pizza? In the meantime, the cost of that pizza, including interest, has nearly doubled!

The purpose of the requirement is to help people understand the consequences of only making minimum payments. Paying off in full each month or at least paying an additional amount toward the balance can save a significant amount of money over time.

A second part of your statement will tell you what amount you would need to pay each month in order to pay off the balance in three years and the amount you would save by making the extra payments. In the previous example, it would require a monthly payment of about $225 to pay it off in three years. While that may be difficult for many people, it would save nearly $4,000 in interest payments.

The third piece of information is the late payment warning. It states the penalty amount of a late payment and how your interest rate may change because of the late payment.

Under the new rules the due date of the payment must remain the same each month. If it is due on the tenth this month, it will always come on the tenth. This helps cardholders avoid the situation of incurring a late fee because they were used to paying on the tenth of the month, for example, and didn’t notice the due date was changed to the first of the month. If the due date falls on a weekend or holiday, it goes to the next business day. The payment cut-off time cannot be earlier than 5 p.m. on the due date.

You can find more information on other changes at http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm.

Uneasy Using Your Credit Card Online?

Feel uneasy using your credit card online to make a purchase? Many consumers do. According to a study by the Identity Theft Resource Center, 85 percent of respondents expressed significant concern about the safety of sending information over the internet.But if there is a purchase you want to make online, what choice do you have but to use a credit card?

There are options. One of them may go by several different names, but it is a virtual, disposable credit card number. Your bank or credit card issuer may offer software for you to download which will generate the credit card number. Or they may have you go to your online account with them each time for a temporary number. While details vary according to the source of the card, it may allow you to set a dollar amount of available credit and an expiration date. Once used with a particular merchant, any leftover available credit can only be used with that same merchant. The card can be used for a purchase online, over the phone, or by mail. The merchant will never know it is any different from a normal credit card transaction.

One limitation is that it cannot be used for an “in-person” transaction, however, as there is no actual credit card. It would not be appropriate for charging airline or theater tickets where you will be required to produce the card when you pick up the tickets.

Major credit card issuers offering this option include Bank of America, Citibank, and Discover.

For any online transaction, be sure that you are on a secure website. Look at the address bar for the website to see if it starts with “https”. In addition, do you see a yellow padlock? These are both signs of a secure web site. You can also check with your browser to see what other features are offered to protect your privacy. If you are using Internet Explorer 8, for example, the address bar turns green when on a secure site and you can view the certificate by clicking on the green bar with the yellow padlock in it.

Should there be an unauthorized use of your credit card, your liability for is limited to $50 per card. If the card is stolen and reported prior to its use, there is zero liability. Your homeowner’s or renter’s insurance may cover the $50 with no deductible.

Report any unauthorized charges to your credit card issuer immediately. Include your name and account number and an explanation of why you believe the charge is incorrect. Along with this, send them a copy of your billing statement with the disputed charges highlighted. Do not send this to the same address as your payment, but to the address creditor has designated for handling billing errors and unauthorized use. That address should be located on your billing statement. You must still pay the undisputed portion of the bill.

The bottom line is always be vigilant when filling in any personal information online.

Need a Fraud Alert on Your Credit Report?

You’ve probably heard stories about a company’s records being compromised and Social Security numbers, credit card numbers or other personal data being stolen. If your information was among the stolen data, what would you do? Well, after you’ve finished fussing and fuming about how it could have happened, there are options available to preclude or minimize any possible damage. Placing a Fraud Alert You could place a fraud alert. A fraud alert can help prevent the identity thief from opening an account in your name. There are two primary types of fraud alerts to consider. An initial fraud alert stays on your credit report for at least 90 days. During that time, creditors must use “reasonable policies and procedures” to verify your identity before issuing credit in your name. An initial fraud alert may be sufficient if you suspect that you have been, or may about to be, a victim of identity theft if your wallet or computer has been stolen or if you’ve been a victim of a phishing scam. The initial fraud alert also allows you to get a free copy of your credit report. The second type, an extended fraud alert, stays on your credit report for seven years. If you’ve been a victim of identity theft you can ask for an extended alert. You will need to provide the consumer reporting company with an Identity Theft Report accompanied by a copy of a report you have filed with a federal, state, or local law enforcement agency. This type of alert requires potential creditors to meet with you or contact you before issuing you credit. An extended alert entitles you to two free credit reports within twelve months from each of the three nationwide consumer reporting agencies. The consumer reporting companies will remove your name from marketing lists for pre-screened credit offers for up to five years or until you ask them to put your name back on the list if earlier. If you are a member of the military and away from your usual duty station, you may place an active duty alert on your credit report to help minimize the risk of identity theft while you are deployed. When a business sees the alert on your credit report, it must verify your identity before issuing you credit. The business may try to contact you directly, but if you're on deployment, that may be impossible. As a result, the law allows you to use a personal representative to place or remove an alert. Active duty alerts on your report are effective for one year, unless you request that the alert be removed sooner. If your deployment lasts longer, you may place another alert on your report. Whichever type of alert you place or remove, you will be required to provide appropriate proof of your identity such as your Social Security number, name address, and other personal information. You can place a fraud alert by contacting one of the three credit reporting agencies. The agency you contact is required to contact the other two to place an alert on their version of your report.

• Equifax: 1-877-576-5734; http://www.alerts.equifax.com/
• Experian: 1-888-397-3742; www.experian.com/fraud
• TransUnion: 1-800-680-7289; http://www.transunion.com/

Placing a Credit Security Freeze A more restrictive option is a credit security freeze. Most states have laws allowing the consumer to freeze their credit. A freeze restricts access to the credit report. Potential creditors won’t be able to access your report unless you temporarily thaw the freeze using a PIN so legitimate applications can be processed. The charges for placing a security freeze on your credit vary by state. There may be a fee to place the security freeze, to temporarily lift it, or to remove it. Pennsylvania has set a maximum fee of $10 to place or temporarily lift the freeze and it is waived for victims of identity theft. Persons 65 years of age or older are also exempted from the fee to place a freeze. There is no cost to remove the freeze in Pennsylvania. The three credit reporting agencies (Equifax, Experian, and TransUnion) or your state’s Attorney General’s office can provide information pertaining to your state. If you wish to open a new account while your files are frozen, you can lift the security freeze for a temporary period of time or with a specific creditor. Unauthorized Credit Card Use The above options all relate to the opening of a new account. None will stop someone who has obtained your credit card number from going shopping. If that is the case, contact the issuing bank or credit union immediately. Your monthly statement will have the toll-free phone number. Follow up with a letter including your account number, when you noticed the card was missing, and the date you first reported the loss. The maximum liability for unauthorized use of your credit card is $50 per card if reported within 60 days. If reported before the card is used, you are not responsible for any charges. If the card was not stolen or lost, but the number was used, you have no liability for unauthorized use. Always review your billing statements carefully and watch for any questionable charges. For additional information on placing a fraud alert or credit freeze, go to: Federal Trade Commission at http://www.ftc.gov/ Pennsylvania Attorney General at http://www.attorneygeneral.gov/ Consumers Union at http://www.consumersunion.org/campaigns/financialprivacynow/learn.html Bankrate .com at http://www.bankrate.com/brm/news/cc/20060911b1.asp

Power Pay Your Debt

Find yourself drowning in debt? Want to get rid of your debts or to cut them down? Try power paying your debt.

Power paying is a great technique to help you pay off your debts and to save money on interest costs. How does it work?

Let’s start by assuming there are 4 debts you are working on and that you’re paying a total of $400 a month toward these debts. In the meantime, you are incurring no additional debt. . Now try to find an extra amount, $50 for example, to put toward the debt with the highest interest rate so that your total debt payment will be $450. Continue making your regular payment toward each of the other debts. As each debt is paid off, you will continue paying the same total amount of $450. Put whatever you were paying for the debt you just paid off toward the remaining debt with the next highest interest rate. As each debt is paid off, the next debt will be paid off at a faster and faster rate until all debts are paid and you are debt free. In this example, we started with the highest interest rate debt and added an extra amount toward total debt payment. Other options are to start with the debt with the lowest balance or the shortest term. Either of these options could help you to eliminate at least one of your debts sooner, which can be a psychological advantage. The biggest financial advantage, however, is to start with the highest interest rate debt. To learn more or to create your own plan online, go to https://powerpay.org/, a program sponsored by Utah State University Extension. You will be required to establish a user id and password. The program will tell you how many months earlier you will be debt free and how much interest you will save by power paying. In addition, there are many other features on this site including how to set up a spending plan, Power Save, and other personal finance topics.

Convenience Checks – Are they Really Convenient?

Does your credit card issuer send you the blank “convenience checks” along with your statement? If so, do you use them or just throw them away? Either way, be careful! Those convenience checks can be both costly and risky. Convenience checks can be used in several ways. They can be written as payment to a merchant, to a friend or family member, or even to yourself to deposit in a bank, perhaps for use later. If you are considering using them, you need to be aware of the costs. First, there are the fees. You will incur a fee of from 2 to 5 percent of the amount of the check just for writing it. Depending on the card issuer and terms, the fee imposed could be a minimum of about $5 or a maximum of up to $300. The costs don’t end there. The interest charges on convenience checks begin immediately and will be similar to that for a cash advance, usually 20 to 30 percent. To find out what interest rate will apply, look at the information sent with the checks, your credit card terms of agreement, or your credit card statement. At least until February 2010, when this provision of the Credit CARD Act of 2009 takes effect, the credit card company is allowed to apply any extra payment over the minimum amount first to the lowest interest rate transaction which usually will be the new purchases. In other words, you won’t be paying off the loan until all lower interest rate transactions have been paid off first. Typically that means that it won’t happen until the total account balance has been paid. The new law requires that the additional payment is allocated to the balance with the highest interest rate. If the convenience check amount causes you to exceed your card’s credit limit, the card issuer might not honor the check. This could, in turn, trigger an overdraft fee from your bank or from the merchant and over-the-limit fees from the card issuer. Furthermore, exceeding the credit limit may cause your interest rate to go up resulting in higher payments for your balance you are already carrying. Convenience checks have many risks. When using your credit card, you have protections from unauthorized use or problems with unsatisfactory merchandise under the Fair Credit Billing Act. Not so with a convenience check. Because there is no signature verification, if the convenience checks are lost or stolen, there is no protection. The thief can go shopping wherever they like at your expense. Using a credit card, you have 60 days to dispute an unauthorized charge and are liable for a maximum of $50 per card. The $50 can be covered by your homeowner’s or renter’s insurance with no deductible. Some card issuers, however, have undertaken some protective measures such as requiring the user to call a toll-free number to activate the checks. To protect yourself from potential identity theft, ask your credit card issuer to stop sending them to you if you don’t think you are likely to use them. You can find the phone number on your latest statement. There may be times when the convenience checks are convenient for some consumers, but it is essential to know the costs and risks involved when using them. Otherwise, don’t get them.

Saving Money on Prescription Drugs

Consumer Reports magazine has sponsored a free website to provide information on various medical conditions, treatments and prescription drugs used to treat them. Their recommendations are based on the safety, effectiveness and cost of the drugs. To obtain this information, go to their website at: www.ConsumerReports.org/health. You can print out multi-page in-depth reports or 2 page summaries, available in English and Spanish. Their AdWatch feature gives you “the rest of the story” regarding drug ads on TV. For example, the ad for Boniva, osteoporosis drug, does not tell you that generic forms of the drug cost only 1/10th the amount of money and are just as effective. Other health information includes the symptoms, diagnosis, incidence and treatments for 35 medical conditions. So find out the facts behind different treatments for conditions like high blood pressure, high cholesterol, diabetes, depression, Alzheimer’s and many more. You could save thousands of dollars per year! Another way to save money on prescriptions drugs is to make lifestyles changes such as healthier eating, weight management and increased physical activity. A major factor in many chronic diseases, especially diabetes, hypertension and high cholesterol is weight. You may be able to decrease or eliminate some medications by making these lifestyle changes, thus saving money on healthcare costs.

Stored Value Cards

A few days ago, a summer intern in our office mentioned that her pay from another part-time job she has, came in the form of a stored value card. For each pay period, her employer loaded the funds onto the card. She said that she can use the card to make purchases from most retailers. But while she is not charged a fee for using it at some retailers she is charged at others. So why would anyone want to have to pay someone to take their money? How do stored value cards, also known as prepaid cards, work? Are there ways to avoid the fees or at least control the costs of using it? What is a stored value card? Stored value cards come in many different forms and can serve a variety of purposes. Anyone who makes purchases with a retailer gift card, places phone calls with a prepaid telephone card, or buys goods or services with a prepaid debit card is using a stored value card. Payroll cards and government benefit cards are other examples. The magnetic strip on the card stores information about the funds available to the card. There are two basic types of stored value cards. The first type is the prepaid or closed system card, a single purpose card such as gift card that can be used only at a particular retailer. The second type of card is a multi-purpose or open system card that can be used to make debit transactions at many different retailers as well as for receiving direct deposits from an employer, and making ATM withdrawals. Some multi-purpose cards may carry the VISA or MasterCard logo and can be use any place there Visa or MasterCard credit cards are accepted. A stored value card does not extend a line of credit, but bears a closer resemblance to a debit card. The debit card, however, is tied to an account typically at a bank or credit union whereas the stored value card is not. Where do you get them? They can be obtained as a payroll card from an employer, an electronic benefit card from a government agency, or a gift card from a retail store. A multipurpose card can be applied for by telephone, online, or at check cashing outlets, money transfer company locations, and retail stores. Are there costs to using a stored value card? There are several types of fees that may be associated with the use of a stored value card. It’s important to know what these fees are to weigh the benefits of using a stored value card compared to the use of other financial services such as a checking account, credit or debit card. Generally, if the card has a high fee of one variety, it will likely have a low or no fee in another. You need to anticipate how you plan to use the card to evaluate if the card will meet your needs. Typical fees include an entrance or activation fee, a monthly or annual maintenance fee, a point of sale fee, and a within network ATM transaction fee. In addition, there could be several other fees such as a reload fee, a phone or online transaction fee, a bill payment fee, an inactivity fee, a transaction limit fee, or an overdraft fee or overdraft protection fee. In other words, you could incur a fee for putting money into your card and again when you use the card at a retailer. All of these fees can add up to a significant sum if the user is not aware of them or careful in using the card. Who uses prepaid cards? Reloadable multi-purpose cards can be an alternative to a checking account for those who do not have a bank account or are unable to open one. An employer can direct deposit the paycheck to the account or funds can be added by money wire transfer, money order, or cash. They are also used by people who don’t qualify for a credit card. No credit check is required to obtain a prepaid card. The prepaid or stored value card can be a way for parents to give a cash allowance to their teenagers while monitoring their spending habits. It can be reloaded online or over the phone. If you’re trying to rebuild your credit history after a bankruptcy, a prepaid card can be a start. Some companies offer programs that help build a positive payment history, since the timely payment of bills constitutes 35 percent of your credit score. Is your money safe? Your savings in a bank is insured by the Federal Deposit Insurance Corporation (FDIC). The same is now true for stored value cards to the extent that the funds have been placed at an insured depository institution. Gift cards issued by a retailer are not covered. If the retailer goes bankrupt (think Circuit City or Linens ‘n Things, for example), there is no guarantee of the funds on the stored value card. Some states may offer some protections or the retailer may ask the bankruptcy court to honor the cards. As with any financial product or service, the consumer needs to be informed to make the best decision as to whether it will meet his/her needs at a reasonable cost.

Mortgage Foreclosure Rescue Scams

Someone knocks on your door and represents himself as an attorney who can negotiate a deal with your lender to save your house. He hands you a business card with the name of the law firm. But before he can do anything to help you, you have to pay him a fee. This person knows your name, your lender, and the fact that your home is in danger of foreclosure. You’re unsure about this so you call the law firm at the number on the business card to verify it. The law firm thanks you for calling and says there has been someone going around the community misrepresenting themselves as being with the firm. But the “law firm” is in on the deal and text messages the fellow to call off the deal and leave. You were lucky. You were targeted for the scam, but managed to avoid it. The information the scammer used to make the deal seem believable is all available as a public record in foreclosure notices in newspapers, on the Internet, or at local government offices. This is known as the Phantom Help scheme, one of several types of scams going on to purportedly rescue desperate homeowners from mortgage foreclosure. In addition to paying the fee, you were told there was no need to contact your lender, lawyer, or credit counselor. The scammer will take care of all the details on your behalf. Just send the mortgage payments directly to him while he negotiates with the lender. That’s money you’ll never see again and neither will the lender. Bait and Switch. You’re told you’re signing documents for a new loan to make your mortgage current. In fact, you’ve surrendered the ownership of the house to the scammer in exchange for a “rescue” loan. Rent-to-Buy. If you surrender title to the house, you can stay there as a renter and buy it back in the next few years. Surrendering the title allows someone else with a better credit rating to secure new financing. The catch? The terms of these deals usually are so burdensome that buying it back becomes impossible. You lose the home and the scammer walks off with all or most of your home equity. Red Flags to watch for if you’re looking for foreclosure prevention help, avoid any business that:

• guarantees to stop the foreclosure process—no matter what your circumstances;
• instructs you not to contact your lender, lawyer, or credit or housing counselor;
• collects a fee before providing you with any services;
• accepts payment only by cashier’s check or wire transfer;
• encourages you to lease your home so you can buy it back over time;
• tells you to make your mortgage payments directly to it, rather than your lender; tells you to transfer your property deed or title to it;
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale;
• offers to fill out paperwork for you; or
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

Where to find help: If you are having difficulty making mortgage payments or have received a foreclosure notice, contact your mortgage servicer immediately or seek help with a mortgage counseling agency. In Pennsylvania, you may get help from the Homeowners Emergency Mortgage Assistance Program (HEMAP) http://www.phfa.org/consumers/homeowners/hemap.aspx. You can also find help at http://www.995hope.org Whatever you do, don’t wait until the last minute. For more information, go to:

• www.ftc.gov
• http://www.attorneygeneral.gov Look for the Consumer tab and choose Advisories.
• http://www.justice.gov/ust/eo/public_affairs/factsheet/docs/fs06.htm
• http://www.freddiemac.com/avoidfraud/fraud_schemes.html

Stop Rising Cost from Eating Up Your Food Budget

Keeping food cost under control is something families can do in tough economic times to help stretch their dollars and other resources. When it comes to saving money at the grocery store there are several tactics that can help reduce cost while still providing adequate nutrition for the family. Saving money at the grocery store requires planning. Going to the grocery store without a shopping list and budgeted amount of food money is like going on a unfamiliar trip without a map or Global Positioning System (GPS). Preparing that grocery list should be the first step in planning each trip to the grocery store. Here are other suggestions for making every trip to the grocery store less of a financial challenge. Take time to plan meals for a week or two. It may take extra time on the weekends to plan meals, but this is time well spent. Remember this nutrition tip when planning meals. Use the USDA MyPyramid as your guide for menu planning. Choose a variety of foods from each of the food groups. The Dietary Guidelines for Americans also suggest consuming a variety of foods in moderation while limiting your consumption of fat, sugar, and sodium (salt). For more information on MyPyramid, visit the website at MyPyramid.gov. Prepare menus two weeks at a time. Plan to use a variety of cooking methods, colors, textures, and be sure to incorporate family favorites into each menu. Select recipes that are fast and easy to prepare and that have short cooking times. These can include stir fry dishes, fish, salads, and stews. This is a good time to try new recipes that use different inexpensive ingredients. You can also plan to serve breakfast for dinner a time or two each month. This is a fun way for families to stretch that food dollar. Plan some of your family meals around weekly grocery store specials. Once you have meals planned, use the menus to develop your shopping list. Check the cupboards, refrigerator and freezers to see if you already have some of the items needed to prepare the planned meals on hand. Make a list to purchase the food you need based on the recipes you choose. Remember to plan to purchase food for breakfast, lunch, dinner and snacks. Keep these tips in mind before heading to the grocery store. · Use coupons wisely. Coupons may not always save money, especially if you use them to purchase food you don’t normally buy. Many times store or generic brands are a better buy. · Compare prices. Don’t grab the first food box or item that you see. Look at the “unit” price display on the shelf and compare. · Compare forms of foods. Buy a lower-cost form of the product if it will do as well. Compare frozen, fresh, and canned products. The cost may vary but the nutritional value is similar. · Shop on a full stomach. Don’t go to the store when you are hungry. You will often buy more food than you really need. · Buy in season. Seasonal fruits and vegetables are the best buy.

Credit Card Rules to Change

Ever been surprised by a notice that your credit card interest just went up? Have you wondered why you seem to pay so much interest on your account balance? New rules that go into effect on July 1, 2010 will address these and other concerns. Increasing Interest Rates The new rules will require banks to disclose all interest rates that will apply to the account when you open the account. Furthermore, it prohibits increases in those rates, except in certain circumstances. The first exception is if a rate disclosed at account opening expires after a specified period of time banks, may apply an increased rate that was also disclosed at account opening. Second, banks may increase a rate due to the operation of an index. This exception would apply to variable rate accounts which are tied to an index such as the Prime Rate. Third, after the first year, banks may increase a rate for new transactions only after complying with a 45-day advance notice requirement Fourth, banks may, increase a rate if the minimum payment is received more than 30-days after the due date. Two-Cycle Billing Another part of the new rules pertains to the method of calculating the average daily balance on which the interest is charged. Banks will be prohibited from calculating interest using a method referred to as ‘two-cycle billing.” Under this method, when a consumer pays the entire account balance one month, but does not do so the following month, the bank calculates interest for the second month using the account balance for days in the previous billing cycle as well as the current cycle. In other words, you are being charged interest on a balance you have already paid. Card holders who are carrying a balance, however, are paying interest on their new purchases from the day the purchase was made. Allocation of Payments Different types of transactions such as new purchases, balance transfers, or cash advances, may carry different interest rates. When different annual percentage rates (APRs) apply to different balances on a credit card account, the bank will be required to allocate payments exceeding the minimum payment to the balance with the highest rate first or pro rata among all of the balances. Presently, it is a common practice to apply the excess payment to the lowest interest transactions first. This results in the highest interest rate transactions not being paid off until the balance on the entire account has been paid. Financing of Security Deposits and Fees The new rule also addresses concerns regarding subprime credit cards. The only option available to persons with a poor credit score or limited credit history may be a subprime credit card. These cards typically carry a much higher interest rate and come with extra fees such as an account set-up fee, a program fee, a monthly fee, and an annual fee. With a low credit limit of $250, after all the initial fees are financed, the account holder may have as little as $71 of available credit remaining. Now banks will be prohibited from financing the security deposits and fees for credit availability, such as account-opening fees or membership fees, if charges assessed during the first 12 months would exceed 50 percent of the initial credit limit. The rule also limits the security deposits and fees charged at account opening to 25 percent of the initial credit limit and requires any additional amounts (up to 50 percent) to be spread evenly over at least the next five billing cycles. http://www.credit.com/products/credit_cards/sub-prime.jsp Time to Make Payments Lastly, the new rule prohibits banks from treating a payment as late for any purpose unless the bank provides a reasonable amount of time for the consumer to make the payment. The rule provides a safe harbor for banks that send periodic statements at least 21 days prior to the payment due date. For additional information on the rules changes including those related to the truth in lending and overdraft services by lending institutions, go to the Federal Reserve Board of Governors web site at: http://www.federalreserve.gov/consumerinfo/bcreg20081218a1.pdf You will also find helpful information on credit and banking issues at the web site of the Office of the Comptroller of the Currency, U.S. Department of the Treasury: http://www.helpwithmybank.gov/index.html

Holiday Shopping During Tough Economic Times

Holiday shopping during tough economic times is a challenge. For most people, this holiday budget is tight thanks to higher gas prices and increased food costs that ate into family finances this past year. Rather than scouring the ads and storefronts looking for that perfect gift, consider showing your love and appreciation by giving gifts that also provide financial relief for the recipient. Doing so means that the person has one less expense to worry about or does not have to decide whether or not to remove that particular expense from their budget. Gift certificates for personal care. During tight economic times, many people forego personal services such as hair styling, manicures, or massages. A little pampering is something that anyone can appreciate, especially when it is free! Gift cards to local restaurants. Dining out as a couple or with friends is something that people often cut back on when trying to stretch their dollars. Payment of a service. Does someone need to have some pictures framed or a room painted? Get a few estimates, and consider offering to pay for the service. If it is a bigger expense, perhaps several family members can all contribute to the cost and give one big gift. A trip or outing. Depending on one’s budget, a trip to see a show may be a luxury that they cannot afford. Additionally, if you do this as a family, you are giving the priceless gift of memories, too. A nice framed picture taken on the trip can serve as a gift to compliment the outing. Membership in a club or organization. A membership to the local “Y”, gym, or outdoor club usually has a cost attached. Especially for older people, it is important for their well-being that they stay connected and socially active. A gift of an annual membership renewal is a gift that will last the whole year through. Lessons or instruction. A registration for a sports clinic or enrollment in a local theater class makes a nice gift especially for a young person whose family might consider these things out of the budget for a while. Subscription to a magazine. Find out the person’s interests and hobbies, and consider a one-year subscription to a magazine. If they like it, you may have next year’s gift already figured out! Whatever you decide to give, it is important to keep in mind that the gift should be self-sustaining. For example, a cell phone may seem like a good idea, however, unless you are also planning to foot the monthly bill, there is a chance that the gift will be returned or never used. Be sure that whatever gift you give does not add more financial burden to the recipient. Gifts that support the usual and ordinary aspects of life are most precious during times when money is tight and the future uncertain.

Shopping Online

Going online can be a convenient and economical way to do your holiday shopping. The stores are open 24/7 every day of the year and you don’t have to fight the crowds and traffic at the malls. It can also be a safe one if you follow a few simple guidelines. · Know who you’re dealing with. Be sure to get the seller’s physical address and phone number in case there are questions or problems with the merchandise. Does the web address of the seller look right or does it contain some extra information that may be an indication of someone spoofing by masquerading as a legitimate seller. DO NOT ORDER from online stores that do not offer secured transactions.

· Know what it is that you are buying. Read the product description closely including all the fine print. Is it a new or a used or refurbished item? Brand names at extraordinary bargain prices may be counterfeit.

· Know what it will cost. Are there shipping and handling charges? What about sales tax? What is the total cost after any additional charges such as these are factored in. Does this still fit into your budget?

· Pay by credit or charge card. If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act. Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating them. In the event of unauthorized use of your credit or charge card, you generally would be held liable only for the first $50 in charges. Some companies offer an online shopping guarantee that ensures you will not be held responsible for any unauthorized charges made online, and some cards may provide additional warranty, return, and/or purchase protection benefits.

· Check out the terms of the deal. What is the delivery date and method? Is there a refund policy if you are not satisfied with the merchandise? Are there restocking fees for returns? A Federal Trade Commission (FTC) rule requires sellers to ship items as promised or within 30 days after the order date if no specific date is promised.

· Print and save records of your online transactions. Include the product description and price, the online receipt, and copies of every email you send to or receive from the seller. Review your credit card statements as you receive them for any unauthorized charges. For additional information, check out the following resources: Pennsylvania Attorney General’s Office: http://www.attorneygeneral.gov/consumers.aspx?id=1920

Federal Trade Commission: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt082.shtm

OnGuardOnline: http://www.onguardonline.gov/topics/online-shopping.aspx

Financial Planning for Young Couples

At this time of year, many young couples are busy planning for spring weddings. Their thoughts are focused on menus, dresses, honeymoons and all of the many things that go along with a wedding. Unfortunately, conversations between couples rarely hit on one of the most important issues they will encounter in their new life together – money management. Many marital conflicts revolve around spending, saving and making money.

Decisions such as opening credit card accounts, having joint or individual banking accounts, deciding on large purchases, purchasing insurance and who will manage the money are among the many things that need to be discussed. Because of the potential conflict involved with money management, it is important that couples communicate openly on the subject. We usually come to a relationship with our expectations based on past experiences and what we observed in our own family situations. Obviously our vision and our partner’s vision of money management can differ greatly. Through open, honest communication, couples can share their feelings and talk about what is important to them - whether that is a house, exotic vacations, additional education, etc. Couples also need to determine who will pay the bills and whether accounts will be shared. If you resent having to ask your partner for money, this feeling needs to be shared during this discussion.

One good starting point is to identify financial goals and how the couple might reach those aspirations. This discussion will lead to the development of a spending plan. The first step in making a spending plan is to write down how much income you have and what expenditures you expect. Both partners need to be involved in planning how income will be spent. Talk about ways to spend and stretch the budget. If there is not enough money for everything, then it will be necessary to generate more income or reduce some expenses to make the budget work. Many couple get themselves into financial “hot water” by filling the gaps in their spending plans by using credit cards.

Finally, couples need to take time to regularly evaluate their spending plan. Determine what is working and what is not. Try not to criticize or blame your partner, but instead focus on alternatives and how to make the spending plan work.

So as you finish your wedding plans, please take time to talk about the resources that will be used to support you after the big event. Be prepared to find differences in what each of you feels is important in financial management and continue to keep those lines of communication open.

How the Cookie Crumbles

These days with the economy the way it is, and holidays around the corner, who doesn’t want to save time and money? Here are some tips to make holiday task more manageable. First break down the big holiday shopping category into smaller groupings such as gifts, parties, food and baking. Set up a budget for each area. This will help you stay within your means. For our purpose let’s just focus on one category, my favorite, baking. The following are some tried and true, time and money saving tips to make the holiday baking season a little less stressful and to give you extra time for other important things. It all starts with planning, sound familiar? Planning is the number one helper in saving time and money. Here are my top ten most helpful steps to get you started on the right track. These tips will help you save time; money; and sanity during any baking venture. 1. Make a list of all the cookies you want to make. Keeping in mind shape, flavor, and texture so you will have a nice assortment of cookies when finished. If you ship cookies you also want to think sturdiness. Most drop cookies will hold up well during the travel process. 2. Gather recipes and ingredients. Make a master shopping list from your recipes. Then look in your pantry or freezer for ingredients you may already have or staples you may be low on. Remember specialty ingredients, items like spices, flavorings, sprinkles, and mix-ins (nuts, choc chips, pieces of candy bars, or coconut). 3. Make a master baking shopping list. This will also allow you to spread out your expenses over several shopping trips. Start purchasing some ingredients ahead when you see them on sale. During the late summer and early fall purchase items such as chocolate chips, flour, and sugar. Knowing your prices helps with knowing how good a sale really is when you happen on one. 4. Be creative. Marked down Halloween candy makes great mix-ins or centers for cookies and brownies. Mix-ins and centers can be altered easily from the original recipe. 5. Oh No’s! What to do with cookies, that don’t turn out right. If you forgot an ingredients or used too much of another ingredient. Don’t trash the batch, use them for something else. Dry them out in a 250˚ F oven and grind them in a food processor many basic cookies such as chocolate chip ,peanut butter and most bar cookies can have as much as 1/3 of the total flour needed can be replaced with dried ground cookie crumbs. 6. No more sticky mess! When measuring shortening or sticky items in measuring cups, line the cup with a piece of plastic wrap first. This will prevent the need to wash the cup for the next ingredient. 7. No Time to bake! If you don’t have time to bake now, mix up batches of dough. Most drop cookie dough made with butter and flour as main ingredients can be frozen now and baked later. If you form the dough into a log and roll it in parchment or wax paper. Then cover with plastic wrap and freeze. Just slice and bake when you have time. You will get best results if dough is still partly frozen while slicing. 8. Parchment paper is your best friend! I know it can be pricey but the time it will save you on clean up is worth the money. In case you didn’t know, parchment paper can be reused until it turns light tan. 9. Make ahead! Freezing baked cookies is another saving grace. About 95% of all cookie varieties can be frozen for up to 3 months without losing flavor. Varieties that don’t freeze well are meringue based, fried, lace and any cookie with hard candy. If you are not sure if a variety you bake freezes well test a sample. Put a few in a zipper seal freezer bag and place them in freezer for overnight. You will know 15 minutes after taking cookies out of the freezer if they are suitable for freezing. Fragile cookies such as cut- outs should be placed in sturdy container s before freezing. Most other cookies can be stored on edge packed tightly together in zipper seal bags. To lock in moisture and freshness, bag cookies as soon as they cool completely. Don’t wait long, cookies start drying out as soon as they come out of the oven. 10. Are we done yet! When I finish my holiday baking for the year, I package extra ingredients in airtight bags or container and freeze them to start the next year. Items that work well for this are choc chips, nuts, coconut, even fruit filling. Baking with family or friends is a great way to spend time together and have fun, even little hands can help. If all the above seems like too much, but you still want homemade baked cookies. Join or start a cookie swap with family and friends. Remember, portion control so you don’t have regrets after the holiday season and stress about weight loss. I know I missed many great ideas so please share your tips for making holiday baking a little less stressful for someone else.