Tackling a long list of goals all at once can be overwhelming and as a result, resolutions may be quickly forgotten. Setting realistic expectations may help you achieve a greater amount of success. Below are some financial tasks and tips that may bring you closer to financial freedom during this year.

1. Volume 4 #11
Financial Goals Throughout the Year
New Credit Card Rules: A Step in the Right Direction
Making the Most of a Bad Economy • Spare Change
Inspiring Thoughts • FDR Client Reminders
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.
Financial Goals
Throughout the Year
A
s a new year begins, many people may make resolutions and contemplate on ways to improve their lives throughout 2009. Tackling a long list of
goals all at once can be overwhelming and as a result, resolutions may be quickly forgotten. Setting realistic expectations may help you achieve a
greater amount of success. Below are some financial tasks and tips that may bring you closer to financial freedom during the upcoming year. You
can also create a similar list of goals that you may want to achieve throughout the various seasons. Happy New Year and we look forward to providing you
with valuable information during the upcoming year.
January-March April-June July-September October-December
• Start off the new year by • Kick off your spring cleaning • If you use an air conditioner, • Review your bank statements.
making some financial by hosting a garage sale . You consider weatherstripping If you are paying a monthly
resolutions. Focus on ways can also sell unwanted items the seams around the unit to fee for your checking account,
that your family can save on on www.ebay.com or www. prevent air leaks. According find a local bank that offers
daily living expenses. Visit craigslist.org for extra cash. to Energy.gov, if everyone free checking.
MoneySavingGuide.com to purchased an energy-efficient
• Consider using homemade • Consolidate trips to the
use the “Money Saving To- air conditioning model,
cleaning solutions for your grocery store to avoid buying
Do List,” an online tool that it would save 831 million
home. Visit the Eartheasy more than you need. Plan
allows users to type individual kilowatts of electricity per year.
web site at www.eartheasy. your meals according to
goals and check them off Visit www.energy.gov for more
com/live_nontoxic_solutions. weekly specials in the grocery
when they are completed. energy saving tips.
htm and learn how to make store. Use coupons only when
• Take advantage of holiday non-toxic cleaners. • Use travel sites such as they can save you money on
clearance sales at the www.orbitz.com and www. products that you normally
• In honor of Earth Day on
beginning of the year. This is a travelocity.com for planning purchase.
April 22, consider ways that
good time to stock up on gift trips. If a vacation will break
you can reduce your impact • Take precautions that may
wrap and decorations for the your budget, consider checking
on the environment and save protect you from becoming a
next season. out attractions in your local
money. For example, buy victim of identity theft. For
area.
• In February, show your love used items instead of new to example, shred all financial
for your spouse or significant prevent trash from filling up • Make it a goal to save your documents before putting
other with an inexpensive, but the landfills and drive less spare change on a regular basis. them in the trash. Be smart
meaningful gift. For example, to conserve fuel. Visit www. At the end of the year, you may about entering information
write a poem or frame a earth911.com for more tips. be able to make an additional online and always try to vary
special photograph. Acquiring deposit to your reserve account. your passwords and user
• If you plan on doing any
debt for extravagant gifts is names. For more tips, visit
home improvements, consider • Consider using “back-to-
not attractive. www.identitytheft.com or
“DIY”, or do-it-yourself. school” shopping trips as a www.ftc.gov.
• Prepare for the tax filing Although you may have to financial lesson for children.
deadline by organizing hire a professional for some Give them a list and a budget • Establish a system that will
necessary paperwork. You can complicated projects, you and tell them to stick to help you remember to pay
also visit the IRS web site at may be able to complete it. Children may learn the all bills on time each month.
www.irs.gov for tax changes. some tasks yourself. Visit difference between wants Consider marking the dates
Estimate your tax return on your local library to find and needs. For discounts on in a calendar or using e-mail
the H&R Block site at www. a comprehensive guide on textbooks and software, college reminders. Paying bills online
hrblock.com. Select the learning how to do jobs such students can check out sites may also help you avoid
“Calculator link” and enter as cleaning your gutters and such as www.textbookx.com late fees and save money on
your information. installing a ceiling fan. and www.journeyed.com. postage.

2. Making the
Most of a
Bad Economy
Client Reminders
Creditor Calls: If you are getting
M
uch discussion surrounds the see the value of using cash.
calls from creditors, please use the script
issue of the struggling economy.
we have designed for you. This will allow
Although the state of the world may You have a support system. Credit
us to work more effectively with these
look bleak, future positive changes may evolve cards make it easy for consumers to live beyond
creditors. If you have lost your script, let from this financial crisis. Below are some ideas their means and impress friends and family.
us know and we will be happy to resend that may help give you an optimistic view of the Swiping a credit card can quickly allow you
it to you. recession. to pick up the tab for an expensive dinner or
purchase extravagant gifts for special occasions.
Draft Changes – 5 Days Notice: If Stores may lower prices. During the As more consumers experience the effects of
you plan on changing the draft amount past holiday season, many stores slashed their the economy, you will more than likely be
you are depositing into your settlement prices to entice shoppers to spend. The National acquainted with someone that is required to
bank account each month, please submit Retail Federation forecasts that retailers will tighten-up their budget instead of people that
still offer great bargains at the beginning of the encourage overspending. Surrounding yourself
the request at least five business days in
year. Taking advantage of these low prices is a with supportive individuals that understand your
advance of your next scheduled draft. We
good way to stock up on necessities. Be careful situation may help you persevere and achieve
want to ensure that it is processed by the
of buying extra items simply because they are your financial goals. Hopefully, frugal living
bank in a timely manner.
on sale. As many consumers may perhaps become a lasting
review their finances during trend even when the economy
Tax Debt? If you owe money to the rough economy, stores bounces back to a prosperous
the IRS and would like information on may also tailor their gimmicks state.
how to reduce your tax debts, please and advertising towards
contact our sister company, Freedom budgeting and saving money. Your opinion counts.
Tax Relief at 1-800-455-6TAX. Our tax For example, Dolans.com, an Consumer Reports’ latest
informative financial web site,
attorneys and tax specialists are eager to national survey finds that more
reports that lay-away programs
immediately start helping you resolve than half (56%) of respondents
may be making a comeback at
your tax troubles. In addition, existing think that the government has
many retailers. not done enough for them in
FDR clients are eligible for a $100 referral
these tough economic times.
bonus if they refer someone to Freedom
Cash becomes a Only 17 percent of those
Tax Relief.
polled said the government
preferred payment
***
needs to do more for banks
method. Spending with
Customer Service Phone No: and financial institutions. In
credit may not be as easy as it was in the past.
1-800-655-6303 the poll, 29 percent said the government went
A July 2008 Federal Reserve Board survey
too far in bailing out the financial industry. You
indicates that 65% of U.S. banks had tightened
FAX No: 650-393-6800 have the opportunity to express your views on
their lending standards on credit card loans
these types of issues by calling 1-800-BAIL-
during the previous three months. As credit lines
OUT. Once you call the toll-free number, you
Hours of Operation: are lowered, consumers may choose cash as a
will be prompted to speak and share anything on
preferred payment method for many purchases.
Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST your mind about the current financial situation
According to Cardweb.com, a web site that
in America. Your message will be recorded,
Fri: 6:00 a.m. – 5:00 p.m. PST tracks the payment card industry, consumers
digitized, and uploaded to www.bailoutrants.
Sat: 7:00 a.m. – 11:00 a.m. PST spend nearly 200% more when using credit. A
com. Other users can listen to your message and
rough economy may allow many consumers to
comment on it.
E-mail:
support@freedomdebtrelief.com
We want Playbook for Life (www.playbook.thehartford.com)
is an educational web site that gives college students
the opportunity to take charge of their finances before
your ideas! venturing out into the “real world”. Sponsored by The
Hartford, a major financial services company, students can
use online calculators, download budget worksheets, and
What do you want to see in the
read helpful financial articles.
newsletter? We welcome your input.
Email your ideas to info@pifff.org.

3. New Credit Card Rules:
A Step in the Right Direction
R
ecently, new rules adopted by the the Office of Thrift Supervision encourages
Office of Thrift Supervision will help institutions to make their best efforts to conform
protect consumers from certain abusive as soon as possible, particularly to the provisions
Inspiring Thoughts
credit card lending practices that can result in related to high-fee cards.
excessive fees and interest rate charges. The rules
A
were developed in conjunction with the Federal What still needs to be done? s you move through your debt
Reserve Board and National Credit Union While the new rules will provide important negotiation program, you may long
Administration. Below is some basic information new protections, more safeguards may be needed for the day that you will be free of
about these new regulations. to address other lending practices that can make debt, which certainly will be a significant
it difficult for consumers to manage their credit. accomplishment. Of course, many people
What are the changes? According to the Consumers Union, other realize that once we achieve one goal in
According to Demos, a public policy research reforms needed to address some of the abusive life, we then face another opportunity or
organization, the recently issued rules will ban practices that hurt consumers are: challenge.
some of the bait-and-switch tactics in credit card One goal that certainly could be of
• Limiting the amount of “penalty” interest
lending. The new rules will: interest is rebuilding your credit. This is a
rates, and how long card companies can keep
topic that may bring about mixed feelings.
• Prohibit banks from retroactively increasing you at these extremely high rates.
You may be eager because you have a chance
the interest rate their customers must pay on • Prohibiting fees for paying a credit card by to start anew, yet overwhelmed because you
existing balances phone or internet. may not know where to begin.
• Prohibit banks from allocating payments to Although rebuilding your credit is an
• Prohibiting account-opening fees no more
lower-rate balances first to maximize finance exciting time to focus on the future, it may
than 10 percent of the credit limit.
charges take as much time as paying off your debt.
• Banning multiple over-limit fees during a
At first, you may still experience some
• Ban the practice of “double-cycle billing,” single billing cycle.
rejection and adversity. For example, a lender
which calculates interest over more than
may deny your application for a car loan
one month, and can result in higher finance
How do these new rules affect me? or you may be forced to pay a higher rate.
charges
These new rules are a positive step in the right While these situations may be difficult to
• Eliminate upfront fees on so-called fee direction for consumers. Once you complete bear, you must not regret all of your hard
harvesting credit cards when they eat up the your debt negotiation program, these regulations work and perseverance during your debt
majority of the available balance on the cards may help you make a fresh start as you strive to negotiation program. Keep in mind that
rebuild your credit rating. Keep in mind that it
• Require banks to provide consumers a some potential lenders simply view you as a
will still benefit you to practice prudent credit
reasonable amount of time to make payments low three-digit credit score number or label
card use. Avoid additional interest and fees by you as “high risk.” Banks lend people money
only charging what you can afford to
What prompted these changes? because they want to make more money in
pay in full that month. Timely return. If you are not approved for a loan,
The new regulations were finalized after
credit card payments may it is not a reflection on your character; it is
the Federal Reserve Board received a flood of
slowly improve your simply a business decision.
comments from approximately 66,000 people
credit score. You have probably heard the saying “good
during a consumer testing study. Also, during
things come to those who wait.” This cliché
this struggling economy, many banks have been
could also be applied to re-establishing your
lowering credit limits and raising interest rates to
credit. Upon completing your program,
compensate for the losses from the
make a conscious effort to take steps to
mortgage crisis. Demos reports
improve your credit rating. Consider
that these tactics are causing
applying for a credit card and charge small
more borrowers to carry higher
amounts which you can afford to pay in
balances for longer periods of time
full each month. Secured credit cards are
and run the risk of exceeding the
also an option. Timely payments on all of
credit limits.
your bills will eventually put you in a low
risk category. Although it is impossible to
When do these changes take effect?
guarantee anything in life, practicing good
These rules will not officially take effect
financial habits should sooner or later boost
until July 1, 2010. However,
your credit score.
Remember that there are also many
It’s Hip to Save! opportunities to improve your financial
skills as you strive to settle your debts.
For instance, take advantage of the many
financial resources available online and at
Visit www.hip2save.com, a blog that offers your local library. Knowledge is power and
legitimate free samples, online coupons, and educating yourself on money matters will
other freebies. help you at all stages on the road to financial
freedom.

4. $pare ¢hange
If the customer overdraws by just $1 and
pays it back in two weeks, some of the higher
bank fees - $37 or more - are the equivalent of
96,200 percent APR. Visit www.econ4u.org for
numerous articles and quizzes about personal
News, financial tips, and other information finance.
regarding personal financial freedom A helpful web site promotes
saving among young adults. Feed
the Pig, a national campaign of the American
Institute of Certified Public Accountants
Consumers are still protected status of the retailer that originally sold the
(AICPA) and the Advertising Council, features
when purchasing service service contract.
a series of print and broadcast public service
contracts. According to the Service
announcements urging Americans age 25 to 34
Contract Industry Council (SCIC), consumers FDIC warns consumers of
to spend wisely and save for the future. The new
can continue to buy and enjoy the benefits of exorbitant overdraft fees. A new
PSAs can be viewed at the campaign website,
service contracts for their electronic products FDIC study shows that banks are charging
www.feedthepig.org, which features savings tips
with the knowledge that the contracts will still Americans billions of dollars in overdraft fees.
and interactive tools. Feed the Pig additionally
be viable and honored even if the retailer closes The Center for Economic and Entrepreneurial
employs new media easily accessible to the
or files for bankruptcy. Many state legislatures Literacy (www.Econ4u.org) is educating
target audience, including weekly e-mail savings
across the nation have adopted or adapted the consumers about the importance of avoiding
tips, podcasts, text messages, and Facebook
SCIC’s model legislation, which among other these fees. Most people do not realize that a
and MySpace pages for Benjamin Bankes, the
provisions puts in place regulations -- including bank overdraft fee comes at a higher interest rate
campaign icon that evokes
the requirement to buy insurance -- to protect and greater cost than
childhood memories of the
consumers who purchase service contracts from any other imaginable
traditional piggy bank. Feed
struggling retailers. Service contracts (sometimes loan. A customer who
the Pig serves as an extension
referred to as extended warranties) purchased makes an on-premise
of 360 Degrees of Financial
from major retailers are sold and administered purchase with a debit
Literacy (www.360financiall
by third-party service contract providers that are card and overdraws their
iteracy.org), an effort by the
independent of retailers. And, according to the account by $20, paying
CPA profession to educate
SCIC, a national trade association that represents it back two weeks later,
Americans on how financial
the service contract industry and works to will suffer an average
issues affect them at all
implement consumer protection regulations, overdraft fee equal to
life stages, beginning with
these third-party providers will continue taking 3,520 annual percentage
childhood and extending
claims and providing service regardless of the rate (APR) in interest.
through retirement.
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.
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Suite 400
San Mateo, CA 94402
Phone: (800) 655-6303
FAX: (650) 897-8800