At this point, you may realize how burdensome credit card debt can affect your finances. According to a 2007 survey conducted by Cardweb.com, the average credit card debt load is nearly $9,900. Based on an online poll of slightly more than 55,000 consumers, 61% said they carry over debt each month on their credit cards and an astonishing 13% of the same group said they carry total credit card balances in excess of $25,000.

1. Volume 4 #6
C.A.R.D. Act Benefits Consumers
FDR Client Reminders • Spare Change
Save Money at Resale Shops
Inspiring Thoughts • It Pays to Stay Healthy
Welcome to the Freedom Debt Relief monthly newsletter! As part of our
ongoing goal to enhance our services, we will be sending you a monthly
newsletter filled with interesting articles and helpful financial tips and
1-800-655-6303 advice. We hope you enjoy this issue, and that you find the enclosed
information helpful as you continue on the road to financial freedom.
C.A.R.D. Act
acquire a balance before you make any significant
purchases. The C.A.R.D. Act would prohibit
card companies from charging fees that amount
to more than half of the credit line. Also, if the
Benefits Consumers fees being charged to the card, amount to more
than one-quarter of the credit line, cardholders
would be allowed to pay these fees over a one-
year period.
A
t this point, you may realize how default will not exist in the future due to the Enhance credit card disclosures
burdensome credit card debt can affect C.A.R.D. Act. Presently, a survey conducted by
and statements. Reading the fine print of a
your finances. According to a 2007 Consumer Action indicates that nearly half of
credit card disclosure can be a tedious task. The
survey conducted by Cardweb.com, the average U.S. banks use universal default, enabling them
average consumer may think it is easier to simply
credit card debt load is nearly $9,900. Based to legally raise credit cardholders’ interest rates as
pay the minimum payment and wait until next
on an online poll of slightly more than 55,000 high as 40%.
month. The C.A.R.D. Act would require issuers
consumers, 61% said they carry over debt each
to give consumers a clear estimate of how long
month on their credit cards and an astonishing Payments need to be allocated it would take to pay off the balance and the
13% of the same group said they carry total
more fairly. Oftentimes, consumers transfer amount of interest that would accrue if they only
credit card balances in excess of $25,000.
balances because they are enticed by the low make the minimum payment each month. If a
Recently, Senator Chris Dodd, Chairman of
introductory rates such as 0% or 2.9%. Reading cardholder’s interest rate increases for any reason,
the Senate Committee on Banking, Housing,
the fine print in the credit card agreement this new legislation will also require lenders to
and Urban Affairs, introduced The Credit Card
indicates that these rates in most cases, only give consumers a 45 day notice.
Accountability, Responsibility and Disclosure Act
pertain to the transferred balance, not to new
(C.A.R.D. Act), which is a proposed legislation
purchases. Credit card companies ***
that will target abusive practices in the credit
have been known to apply During the upcoming
card industry. Below are some specific aspects
monthly payments only to the months, this newsletter
that this legislation intends to cover.
transferred balance, which results will offer updates on
in more finance charges on the new the C.A.R.D. Act as
Eliminate universal default. This purchases. The C.A.R.D. Act would information becomes
practice involves raising rates when creditors establish a more fair allocation available on the status
detect a problem on your credit report with any system. of this new legislation.
lender. For example, you may have missed a Although you may have
payment with Credit Card A and have a perfect
Ban excessive fees for already been a victim
history with Credit Card B. Unfortunately, of abusive credit card
sub-prime cards. Some credit
Credit Card B can still raise your interest rate practices, lawmakers seem
card companies target consumers
due to a blemish on your credit report with the to realize the need to
with poor credit histories and offer
other lender. In 2007, Citibank was the first address these issues so that
them cards with astronomical
credit card company that put an end to universal future consumers will not
interest rates and approval fees.
default. Also, legislators outlawed this practice in be easily burdened with
Upon approval of the card, issuers
the state of New York last summer. As you can debt.
commonly charge the fees on these
see, progress is being made and perhaps universal
new accounts. Therefore, you
Other Credit Card Reforms Needed
Various consumer groups such as the National a financial literacy course. Also, consumers under
Consumer Law Center (NCLC) and Demos (www. the age of 21 would have to choose to receive
demos.org), applaud the recent proposal of the solicitations instead of having consumer reporting
C.A.R.D. Act. Below are a few other reforms that agencies automatically send them.
Congress is considering to put in the proposal as a
result of input from consumers and advocacy groups. Outlaw repeat over-limit fees. These fees are only
allowed to be charged once during a billing period.
Eliminate aggressive lending to young consumers:
Applicants under the age of 21 may be required to Limit penalty interest rates. If a consumer fails to
obtain a signature of a parent or guardian. Young make a payment on time, issuers can only increase
people may have to provide proof that they completed the interest rate to 7% above the previous rate.

2. which prevents blood clots, could cost anywhere
between $382-$541. Costs for generic drugs
may also differ. The price range for the drug
alendronate (for osteoporosis) was $124 to $306.
Overall, the study revealed that Costco was the
cheapest for the four drugs, followed by AARP.
com and Wal-Mart. The prices at major store
chains such as Rite-Aid and Walgreens could also
vary depending on the geographical location.
Client Reminders New regulations require financial
Visit us on the web! Did you institutions and creditors to
have identity theft prevention
know that you can view your account
Spare Change:
programs. Financial institutions and
inforamtion online? We have recently
creditors are now required to develop and
enhanced our web site for our clients. Go
implement written identity theft prevention
to www.freedomdebtrelief.com and click
News, financial tips, and other programs under the new “Red Flags Rules,”
on the tab “Current Clients.” Then, near
which is part of the Fair and Accurate Credit
the bottom of the page under the heading information regarding personal Transactions (FACT) Act of 2003. Under
“Existing Client Login for Account
financial freedom these Rules, financial institutions and creditors
Information” click on the button, “Click
with covered accounts must have identity theft
Here.” Enter your e-mail address, and prevention programs in place by November
Some gas stations ban plastic.
then follow the instructions to create a According to a recent article in USA Today, 1, 2008, to identify, detect, and respond to
password and validate your information. many gas station owners are refusing to accept patterns, practices, or specific activities that
You will now be able to view this credit cards due to the increasing surcharges could indicate identity theft.
information online! and interchange fees merchants are required
to pay on credit card transactions. Many gas Consumer understanding of
stations encourage customers to pay with cash by credit scores only slightly
Tax Debt? If you owe money to the
offering discounts or free products. In order to improves. Although consumer
IRS and would like information on
help merchants, VISA is restructuring consumer understanding of credit scores has improved
how to reduce your tax debts, please
interchange for transactions at automated fuel over the past year, it remains poor, according
contact our sister company, Freedom
dispensers and service stations. Interchange to the latest credit score survey commissioned
Tax Relief at 1-800-455-6TAX. Our tax
for Visa consumer debit cards will be capped at by the Consumer Federation of America (CFA)
attorneys and tax specialists are eager to $0.95 per transaction. This fall, Visa will also and Washington Mutual Bank (WaMu). Less
immediately start helping you resolve implement Real-Time Clearing, which means than one-third of Americans understand that
your tax troubles. In addition, existing that transactions will be processed immediately credit scores indicate risk of not repaying a loan.
FDR clients are eligible for a $100 referral instead of at the end of the day. This can Many Americans fail to understand that one’s
bonus if they refer someone to Freedom significantly reduce the hold times that financial credit score reflects only how they use credit.
Tax Relief. institutions place on cardholders’ accounts. Gas Significant percentages erroneously believe that
stations will send a final transaction amount credit scores are influenced by income (74%),
American Consumers Union within hours - if not minutes - of a cardholder’s age (40%), marital status (38%), the state
purchase. Current fuel-payment processing can in which they live (29%), level of education
FDR has a partnership with the
take up to two days or more. These changes can (29%), and ethnicity (15%). While more than
American Consumers Union in order to
lower costs for oil companies and service stations three-quarters (78%) correctly understand that
provide additional support to our clients
and can be passed onto consumers at the pump. making a monthly payment more than 30 days
with respect to creditor harassment.
late lowers one’s score, less than three-fifths
All FDR clients are automatically
(59%) know that maxing out a credit card by
Shop around for prescription
given membership into the American
drugs. For consumers who pay for all or using the entire credit line also lowers scores.
Consumers Union, and are given the full
most of their prescription drugs out of pocket, Large majorities correctly understand that they
use and support of the advocacy group, a new price study by Consumer Reports finds can learn their credit scores if they are denied
at no additional charge. This is a terrific that it pays to shop around. Not only do prices a mortgage loan (72%) or declined for a credit
benefit for our clients and we are happy vary from store to store for the same drug, but card (65%). But, an even larger majority,
to be able to provide this service to our the fluctuations can be dramatic, sometimes (79%), incorrectly believe that credit scores
clients at our expense. You can visit them more than $100 for the same prescription. can be obtained for free once a year. (Only
online at www.myacu.org. Consumer Reports placed more than 500 calls credit reports can be obtained annually for
to 163 pharmacies nationwide to gauge price free.) Those who obtain their scores know more
*** differences among four prescription drugs. For about credit scores than those who have not.
example, prices ran from $29 to $85 for the drug For a free copy of your credit report, visit www.
Customer Service Phone No:
Levoxyl (for treating hypothyroidism). Plavix, annualcreditreport.com.
1-800-655-6303
Tax-Free Days:
Hours of Operation:
Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST Visit the web site of the Federation of Tax Administrators
(FTA) located at www.taxadmin.org and click on the link at
Fri: 6:00 a.m. – 5:00 p.m. PST
the top of the page entitled “2008 State Sales Tax Holidays.”
Sat: 7:00 a.m. – 11:00 a.m. PST
Many states are waiving sales tax for back-to-
school shopping.
E-mail:
support@freedomdebtrelief.com

3. Save Money at
Resale Shops
M
any consumers know that you can find price. If you are an avid reader, this store may
good deals on pre-owned items at flea be a good alternative to the pricey bookstores
markets, Ebay, Craigslist, and various that sell only new items. Half Price Books also
classified ads. In recent years, many franchise gives you cash for your used books, CDs, movies,
specialty resale shops have emerged on the retail etc. According to this store’s web site (www.
market. These stores allow shoppers to shop for halfpricebooks.com), associates will make an offer
specific specialized goods and also may give you on every one of your items.
cash for your unwanted items. Below are some
descriptions and web sites that have a growing CD Warehouse: This resale store
number of locations across the nation. buys, sells, and trades used CDs, DVDs, VHS
tapes, games, and vinyl records. The amount
Once Upon a Child: With more than of cash you receive for CDs depends on the
230 stores nationwide, Once Upon a Child buys current inventory of the individual store. The
and sells gently-used children’s toys, furniture, CD Warehouse also provides a great way to
Inspiring Thoughts
and clothing. Most parents know that kids unload the music that you no longer listen to
outgrow everything very fast. Therefore, this or have converted to MP3 format. Music buffs
A hundredload of worry will not pay an
resale shop can save families money on items that can also find interesting and rare tunes for a low
ounce of debt. ~George Herbert
children use for a short time. Those bags full of price. Visit www.cdwarehouse.com for more
gently-used clothes that children wore for a few information. This franchise also operates under At this time, the idea of your debt may
months could also earn parents some extra cash. the names of Disc Go Round, CD Exchange, and consume every one of your thoughts and
For more information, visit www.ouac.com. Music Trader. emotions. If you attempt to think about
something else, you receive a call from a rude
collector and your worries and uncertainties
Computer
Plato’s Closet: This
become the forefront of your mind.
Renaissance: Keeping
store has a similar concept to
This daily stress can really make you lose sight
up with the latest computer
Once Upon a Child, except it
of the unique person that you have become.
technology can be a costly
is geared towards teens. Plato’s
Your favorite pastimes, interests, and hobbies
endeavor. Computer Renaissance
Closet, a franchise resale shop
may seem like a nostalgic distant memory. It
offers consumers refurbished name
that buys and sells gently-used
almost seems like your sole purpose is to pay off
brand computers and also custom
teen apparel, specializes in
debt.
builds new computers. When
designer brands such as Express Although this intense dedication to pay off
it comes time to upgrade your
and Abercrombie & Fitch. debt is extremely noble, try not to forget the
system, you may be able to receive trade-in value
In addition to purchasing stylish clothes for a meaningful aspects of life and the person that
for your equipment and apply it to the cost of
fraction of the cost, your teen can also get cash you have become. Despite your financial crisis,
a new computer. For more details, visit www.
for clothes that they do not wear anymore. Visit you still have your friends and family and
compren.com.
www.platoscloset.com for a store near you. you can still recall positive memories that you
shared with them. You are still allowed to play
Play It Again Sports: Participating ReTool: Household tools can be a surprise your favorite CD, read an intriguing novel, or
in school or community sports produces expense because some people may only buy them watch your favorite sitcom when you want to
positive results for your child. However, parents relax. Small pleasures such as these may be the
when they absolutely need them while others like
diversions that we need, especially on difficult
are sometimes burdened with bills for costly to tackle various home improvement projects as
days. When the pressures of our money situation
equipment and transportation fees. Play It Again a hobby. ReTool offers an array of new and used
become unbearable, relaxing occasionally may
Sports allows you to turn in your used sporting tools which includes everything from table saws
give us strength and perseverance to accomplish
goods for credit towards new purchases. This to nails. All used tools are inspected to ensure
our goals.
store also gives cash for used fitness equipment. they are functional. This store will also buy your
Dealing with stress effectively can also prevent
View them on the web at www.playitagainsports. unwanted tools or give you credit to trade
anger and bitterness. As most of us know, life
com. up to a different model. Find a
involves good and bad experiences. Instead of
location near you at
dwelling on the negative, think of your current
www.re-tool.com.
Half Price Books: By the name of this situation as a learning experience.
store, it is easy to assume that it carries a wide Do not automatically assume that enjoying
variety of used books. However, they also stock yourself requires a significant amount of money.
pre-owned music, movies, and games. It is true that it may not be realistic to book a
Most items are at least half off lavish vacation or make a weekly appointment
of the publisher’s at an upscale spa. As mentioned previously,
original simple activities such as listening to music and
reading can be relaxing. You also may want to
Frugal Green Tip explore what your local community has to offer.
Summertime is a great time for free concerts
and walks in the park. Taking the kids to the
According to the U.S. Department of Energy, 75% of the
playground or going out for an ice cream cone
energy used to power electronics in the home is consumed
can also give you a break from thinking about
while the products are turned off. Consider unplugging items
debt.
such as microwaves and cell phone chargers when not in
use.

4. Avoid diet products that seem too favorite music. Check out fitness videos from
your local library or look in thrift stores for low-
good to be true. You may have seen
cost workout DVDs. Again, consult a medical
commercials on television or magazines that
professional before starting an exercise routine.
claim you can lose weight while you sleep or
lose 30 pounds in a month. However, in-depth
Develop healthy habits. If joining a gym
studies conducted by the FTC found that 55%
or buying exercise equipment does not fit into
of weight-loss ads contain false or unsupported
your budget or your schedule, consider changing
claims. During the past decade, the FTC has
simple aspects of your daily lifestyle. For
filed more than 100 cases against weight loss
instance, take the stairs instead of the elevator
manufacturers that make deceiving or bogus
at work. Also, prepare meals at home and bring
promises. Realistically, healthy dieting usually
your lunch to work instead of dining out. You
involves losing no more than one or two pounds
have the ability to read ingredients and control
per week as a result of lifestyle changes, exercise,
It Pays to Stay Healthy your portions. Visiting restaurants and fast food
and better food choices. The FTC recommends
joints on a frequent basis can really deplete your
that you research a diet product thoroughly
M
food budget.
before wasting any money on gimmicks that
any Americans aspire to lose weight simply do not work. If you have purchased a
by following fad diets or buying
Find a support system that works
diet product that you feel did not live up to its
gimmicks that promise unrealistic promises, you may file a claim with the FTC at for you. Achieving major goals such as losing
results. In fact, the Federal Trade Commission www.ftc.gov. weight is often easier when you have a support
(FTC) reports that Americans spend $38 billion
system. According to a study by the Agricultural
on weight loss products each year. If you want
Discover low-cost ways to exercise. Research Service (ARS), nutritional scientists
to lose weight, but not money, here are some
Joining a gym or health club concluded that dieters who have the
thoughts to keep in mind as you search for the
may provide modern exercise help of a support group may experience
best way to shed unwanted pounds.
equipment. However, before less stress than those who go at it alone.
enrolling, make sure you can Therefore, many people pay to join
Consult a physician for dieting afford the membership fees and organized support groups. Although
advice. Before beginning any diet regimen, seek that the facility offers hours that these programs may work for some
the guidance of a doctor. Everyone has a different fit into your schedule. You may dieters, the fees may be quite hefty and
metabolism and health concerns. A medical also consider other less expensive the company may try to persuade you
professional may advise you on the proper way ways to exercise and stay in shape. to purchase their brand name pre-
to lose weight and still obtain the nutrients and For example, walk or jog in a packaged food. An alternative could be
vitamins that you need. park with family members or do to organize your own support group
floor exercises while playing your among your family and friends.
The Freedom Debt Relief newsletter is published by The Premier Institute for Financial Freedom. While articles in this newsletter are factual and accurate, they are not intended to replace the advice of professional financial,
accounting, and/or legal advisers. As with all decisions regarding your finances, the advice, techniques, ideas and suggestions offered herein should be followed under the supervision of the appropriate competent professional.
1875 South Grant Street
Suite 400
San Mateo, CA 94402
Phone: (800) 655-6303
FAX: (650) 897-8800