WHY YOU SHOULDN'T BUY BOOTLEG

Its attractive, available and cheaper. They are available everywhere in most Urban areas. The Bootleg: Movies, Music and Comedy Concerts. They are mass produced illegally and sold at less than half the cost charged in the stores or on line. Why shouldn't you partake? Everyone likes a good bargain. Here are three reasons you shouldn't buy Bootleg.

YOU GET WHAT YOU PAY FOR
You never know the quality of the item when you're buying Bootleg. Yes, you got it at a deep discount. But is it really a discount if you have to replace it over and over again? Most of those folding table retailers don't have a return policy if the sound or video quality is poor, or non existent. With the advent of digital music and access to directors cut of certain movies, the quality of Bootleg has improved over the past twenty years. You probably wont find the tops of other theatre-goers heads in your Bootleg movie anymore. But quality can still be an issue. If you cant return, exchange or get a refund when things go wrong, your hard earned money is lost and you may have to repurchase. Go on and buy it once, online or at a Big Box store and save yourself the headache.

THEY'RE ALL GONNA LAUGH AT YOU
Yes. You are correct. Artists only get a minuscule amount of money spent on music and concert films. They make the bulk of their money when they are in concert live. However, they may never make it to perform a concert in your city if too many of you are buying Bootleg.

Record companies, Movie houses, Concert Halls all pay attention to sales of artists' work. legitimate sales. There is no way to calculate the number of Bootleg sales for an artist. So, there is no way to predict how many fans there are. As a result, Record companies, Movie houses and Concert Halls have no reason to schedule concerts, comedy tour dates or an actor's next movie in your city. You and all your buddies, your whole city, in fact, may love your favorite artist. But without hardcore sales in your city, the folks booking that artist's shows may feel that "the Market doesn't support it." Your favorite artist, comedian and/ or film may bypass your city completely. Stop travelling two hours on a Greyhound to see your favorite artist. Bring their numbers up. Buy their work from a legitimate retailer in your city.

GOOD ARTISTS SHOULD EAT TOO
Lets face it. There's a lot of junk out there. Bad rap music, degrading movies, mediocre comedians. Where's the good stuff? Maybe you know a good local or underground artist who has to work part time at a mind numbing job just to keep his or her dream alive. Put your money where your heart is. Support your favorite artist.

You spend hundreds of dollars on things that don't make you happy. Set aside a little for that concert ticket, that comedy show. Go see the movie on the first Friday its released. Take a few friends. The first weekend box office sales are the only ones counted by movie theaters and movie producers. Make sure your dollars are counted in that first weekend. If a film doesn't make money that first weekend, the next film by that actor or filmmaker may not make it to your city. The box office take (or lack there of) may indicate that there is a lack of sufficient fan base for that artist to return to your city.

This is especially important for new and independent artists. These artists may not have the large scale promotion machine behind them, so their fan base, and their income, has to come from the grassroots. Just getting booked at a medium-sized arena is a major feat for a new or independent artist. Your support of such an artist is more direct and appreciated. Stop wasting money on a Bootleg of a singer, comedian, actor or filmmaker you kinda sorta like. Spend your hard earned cash on a legitimate, CD, DVD, MP3, concert ticket or movie ticket for an artist you love.

Let's Be Careful Out There.

WHY YOU SHOULD FILE FOR CHILD SUPPORT

Its a touchy subject. You broke up. There are hard feelings. There are children involved. The last thing you want to do is cause more drama by filing legal papers in court for child support. But you need to protect your children financially. Child support is a percentage of the non custodial (parent who doesn't live with the child) parent's income. These funds are paid to the custodial parent (the parent who lives with the child), to care for the child by order of the court. Here are some reasons why you should bite the bullet and file for child support:

ITS NOT YOUR MONEY
Many parents are mistaken about child support. Some parents feel that child support is "extra" money for the custodial parent. This is not the case.

Child Support is the property right of the child.

The payments are based on a formula, which calculates approximately how much money the non custodial parent would have used on care for the child had the family been together. Because the child is too young to file papers for themselves, the custodial parent does this for them. The funds actually belong to the child. Once the child support order is filed with the court, if the income of the non custodial parent changes, a modification must be made by the court. Neither parent can use self help to change a child support order.

NON CUSTODIAL PARENT "NOT WORKING?" FILE ANYWAY
Child Support is based on a percentage of the non-custodial parent's income. Sometimes this parent may hide their income and assets, refuse to work, or refuse to work "on the books" to avoid paying. Protecting the child's financial rights is very important. File a claim as soon as you can. Get it done and out of the way. If the court finds the hidden income, finds that the non custodial parent is refusing to work, or has willfully quit their job to avoid child support payments, you may be due arrearage payments. However, if you've never filed the paperwork, you could miss out on funds for your child. Be proactive. File your child support paperwork first. Ask questions later.

THE CHILD NEEDS FINANCIAL SUPPORT FROM BOTH PARENTS
Children are expensive. There is no way to contain the cost of a child. There are too many moving parts and unexpected urgent or emergency expenses that all children have. There is no way to plan for every expense. Because the federal, state and local governments have budgets cuts, they have cut funding for relief to children and families. One of the results is a more vigorous effort to get the non custodial parent to cover expenses for their own children.

In 1992, the federal Uniform Interstate Family Support Act was passed. This act made is easier for states to enforce child support orders across state lines.

Long gone are the days when custodial parents could apply for social services without giving the name of the non custodial parent. Also long gone, are the days when the non custodial parent could simply leave the state to avoid a child support order. Unfortunately, these changes in Child Support law were not based on concern for the welfare or well being of the children. Its not based on the courts' personal vendettas against the non custodial parent, either. It has much more to do with budget cuts.

BONUS: SHOW YOUR CHILDREN YOU CARE
Custody and/or visitation are separate from child support payments. Custody and Visitation are handled in a different court proceeding, and are generally based on the best interest of the child. Child Support, as I mentioned above, is the property right of the child, owed once legal parentage is established by marital status, birth certificate and/ or genetic testing. Child Support is NOT a pay for play proposition. Parents cannot refuse to comply with the child support order because they did not see their child. Parents also cannot refuse to comply with a lawful custody or visitation order because the child support is unpaid. If any of these orders need to be changed, the remedy is to return to the appropriate court for a modification.

Emotional support, visitation and involvement in the child's life is very important. However, financial support is just as important. Having enough clothes, shoes, food, healthcare, lightbulbs and toilet paper, is just as important as that trip to the ball park with the non custodial parent. The child will grow up knowing that even though the parents didn't not work out their relationship issues, s/he was important to, and loved by, both parents. When the child's basic needs are met, they can go on to succeed and excel in school, sports, the arts and grow up to become positive and successful.

The child may not understand fully, or have the language to describe it, but they feel the love and support when the non custodial parent pays their fair share, and when the custodial parent cares enough to protect the child's financial resources and file for child support. "where your treasure is, there your heart will be also" (Luke 12:34)

Let's Be Careful Out There.

THEY SHOULD TREAT YOU LIKE FAMILY

What should you do when you are treated poorly while patronizing a business? It happens. All female groups seated in the back of the restaurant. International travelers whose reservations are not honored at the hotel front desk. Blacks and Latinos who are charged an extra "deposit" at the car rental counter. Those pesky "plainclothes"  "security" that follow you around the department store... in the furniture section. What do you do when your shoppers high, travel or entertainment venture turns into a disappointing mess because staff members bring their personal prejudices right into the workplace with them? Here are some actions you can take when your hard earned dollar isnt appreciated by a business.

MAKE A COMPLAINT NOW... OR LATER
Complain to the manager immediately. Ask to speak to the rude employee's supervisor. Explain the situation in a calm clear voice. Speak from the standpoint of a consumer, a customer, a potential (or current) repeat customer with friends who may want to use their services... except for this little problem you are having with the one rude employee.

If you dont feel comfortable making a complaint at that time, or if all the staff on site seem to have the same attitude, you can complain in writing. Many establishments have websites, with "contact us" pages, where you can make your complaint. You can also make a complaint with government agencies or consumer organizations. The State Attorneys office, the local Better Business Bureau and websites like Yelp are places where consumers can complain without (or before) filing a lawsuit.

However, if the rude behavior was discriminatory, it may be grounds for a more formal or legal complaint. Under federal and state Public Accomodations Laws, hotels, restaurants, taxis, buses, trains and many other facilities that are regularly used by the public, are not allowed to discriminate based on race, color, religion, national origin, disability and in some states, perceived sexual orientation.

BE A SNITCH
Let your friends and family know about your bad experience. Encourage them to use different establishments. Use your social networking and word of mouth. Many business owners and staff members have deeply ingrained prejudices and fears that rear their heads in the workplace. Unfortunately, some of these may come out while you're shopping, trying to enjoy a night out with friends, or check into a hotel. This is extremely poor judgment on their part. Make sure your own circle of friends and family know not to spend their money at these establishments and why.

Many owners and employees may never understand why they should treat every customer like family. This poor judgment should hurt them in their wallets. Who knows? They may change their business culture and begin to treat each customer as a potential repeat business, referral and steady income. Or they may not. And shut down. Regardless of the type of customer, the color of money is green.

VOTE WITH YOUR FEET
Maybe you dont feel comfortable approching a store manager. Maybe writing's not your strong suit. Maybe youve spoken to your friends and family and they've ignored the issues you raised. There's one thing you can do. You can decide never to set foot in that establishment again. This one - person boycott can empower you to try out new restaurants, clubs, hotels, airlines. You can save the money you would have spent. Or re-route the funds to a business or establishment that is more welcoming with better customer service.

BONUS: ALL YOU GOTTA DO IS SAY YES
Also, remember to support the businesses that treat you well. If you experience consistently good service with respectful, friendly staff, do the opposite of the above. Report your satisfaction to the nearest manager, or use the online comment form when you get home. Let your friends, family and co-workers know that this is the place to be for a good shopping, dancing, eating or travel experience. And become a repeat customer. You dont have to be Norm on the TV Show Cheers, but make sure you support the businesses that treat you well, so they can stay open for business.

Let's Be Careful Out There

SELF MONEY EXAM: PULLING YOUR OWN CREDIT REPORTS

Like any other self exam, a self exam of your credit may be frightening. For instance, if you have a history of illness in your family, you may be afraid to self examine. You may be afraid of what you may find. Likewise, many of us have a history of poverty or bad credit in the family. You may be reluctant to pull your own credit reports due to fear of bad news.

However, a physical self exam can help you to catch an illness at an early treatable stage, clear up a misdiagnosis or prevent illness altogether. When you pull your credit report once a year, you can catch financial problems at the beginning, correct mistakes, and prevent a financial mishap from ever starting in the first place.

There are three major credit reporting agencies TransUnion, Equifax and Experian. A company reviewing you and your credit may use any or all of these, so you should review each, once a year. Here are Five good reasons to pull your credit report:

ITS FREE - BUT NOT THE ONE ON THE TV COMMERCIAL
Since 2003, Federal law (the "Fair Credit Reporting Act" or "FCRA") provides that everyone can pull their credit reports, for free, once per calendar year. You can can also pull your credit reports for free if you were denied credit in the past 60 days. Some states, such as Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont have always allowed their residents to obtain free credit reports. Other states, charged a small fee. However, under the 2003 amendment to the FCRA, anyone can obtain their free credit reports at annualcreditreport.com regardless of their home state.

The so called "free credit report" advertised on television with the funny commercials, and most of the free credit report ads on the internet ARE NOT FREE. These are credit monitoring services that charge a monthly fee to review and monitor your credit report. You can provide these services to yourself. Let me tell you more about that.

PREVENT FRAUD AND IDENTITY THEFT
When you get your credit reports, you want to sit down and read through them. You will see a list of your credit accounts, their balances, and your payment history including: credit cards, car notes, mortgages, store credit accounts, personal and student loans. There will also be information on your addresses and some information on your work history.

You want to make sure that you actually opened the accounts that are on your credit reports. Criminals who commit Identity Theft and Fraud, rely on the fact that most people never pull or read their own credit reports. If you see accounts that are not familiar, ie, mortgages you never applied for, a car note for a truck when you ride a bike to work, if you are a man with mysterous open accounts at Dress Barn, Ashley Stewart, and Catherines, you can report the listings and request an investigation. You can also request a Fraud Alert be placed on your credit reports. A Fraud Alert will require anyone opening a new account to provide additional verification of their identity. If a listing is found to be fraudulent, it will be removed from your credit report.

THE OPPORTUNITY TO MAKE CORRECTIONS
When you read through your Credit Reports, you may not see any obvious signs of fraud, but there may be mistakes. There may be accounts that are listed as open or active, that have been closed. Or accounts that you've paid off, still showing a balance. Your addresses may be wrong. You can make corrections to your credit report. You want to make sure your credit reports are as accurate as possible. When you go to apply for new credit, you dont want to have an incorrect outstanding balance lingering around on your credit report blocking your application. After making the corrections, the credit reporting agency will usually send you a revised credit report for your records.

YOU ARE ABOUT TO MAKE A MAJOR PURCHASE
You definitely want to pull your credit reports before you make a major purchase involving your credit. You dont want any bad surprises when you go for your mortgage, car note or private loan. You want to review it before any company sees it so you can clean up, or at least be able to explain, any irregularites.

Also, we talked about fraud a little earlier. Many housing scams, mortgage scams and high interest car notes happen because the consumer has not read their own credit reports ahead of time. If youve never read your credit report and assume you have bad credit, you may sign up for high interest, or balloon credit thinking you have no choice. Many of the companies that sell bad mortgage products or high interest car loans are hoping that you have no knowledge of your own credit history. Stay ahead of the game. Be an expert on yourself.

To stay on the safe side, use a major bank or lending institution to secure your credit products. Banks have a full range of legitimate credit products for people of all income levels and credit situations. If your credit is damaged, you may be able to get a "secured" credit card, which is a credit card backed by a savings account until you are back on your financial feet.

To improve your over all credit, pay regularly and on time, pay off and close all but four or five of your credit based accounts, make corrections on your credit reports if there are any errors.

LOOKING FOR WORK HOUSING OR LOVE
Many employers pull applicants' credit reports to determine fitness for the job. This is especially true in the financial, banking and security fields. Some government employers also request a credit check along with the general background check. They cannot do this without your permission. They will probably have you sign a "release," paperwork allowing them to pull one of your credit reports or run a background check.

Many managment companies, municipal housing authorities and private landlords use credit reports to determine your payment history and predict your ability to pay your rent to them in the future.You dont want any surprises. You want to be able to review, correct and/or explain any problems with your credit report long before your work or housing application reaches someones desk. You can only do that if youve pulled your credit reports and reviewed them ahead of time.

The newest craze are dating services, or actual dates, requesting your credit score. Your credit score is a number that determines your creditworthiness. Its loosely based on your credit report. If your credit score is reported by "Fair Isaac Co" or "FICO", your credit score can range from 501-990. The only real way to improve it, is to improve your overall credit. Its ill advised to provide such personal information to a dating service or someone you dont know very well. However, once you are engaged or married, it IS advisable to discuss finances, including your spending styles, financial goals and your credit. Money issues break up more marriages than infidelity.

BONUS: AGING OFF
Under FCRA, and also under basic contract law, most negative credit reporting falls off your credit report seven years from the date of last activity. Also, the older it is, the less harmful it is. So, for instance, late payments on a credit card five years ago may still be on your credit report, but less harmful to your credit than your late payments two months ago.

Judgments (when a creditor takes you to court and wins) and Bankruptcies (when you file with the government for legal protection against your creditors), stay on your credit report for much longer than seven years. However, the more time, and regular payment history, you can squeeze between the negative reporting and the present? the better.

Certain items DO NOT age off. Student Loans, Back Taxes and Back Child Support do not age off of a credit report. You must make payment arrangements and try to improve the payment history with these items if they wind up on your credit report.

Let's Be Careful Out There.

THE B WORD: BANK

Many people are reluctant to use banks. In some cases, the distrust of banks goes back several generations. This article will discuss some myths about banking, why putting your money in a bank is a good idea and alternatives for when a commercial bank does not work for you for whatever reason.

Why Some People Don’t Use Banks

Many people feel that they can “fly under the radar” or be untraceable in some way if they don’t have a bank account. This is a myth. In this internet, surveillance camera, post-9/11 day and age, there is literally no way to hide yourself or your money from government agencies, child support orders and debtors. Rather than carrying all your money in your left sock, put it in a bank account and make payment arrangements to clear your debts and arrearages. Yes. Your debtors can go into court and attach (take some of) your assets. But if you make payment arrangements ahead of time, you can pay them on an agreed upon schedule. If you have a bank account, you can also pay them electronically.

Many people don’t want to use banks because they feel their money is safer if they keep it themselves. This is also a myth. Hiding your money in your house, backyard, mattress, etc., leaves you open to theft. If your house is burglarized, if you are forgetful, or if you have to move out in a hurry, you may lose all of your family’s funds. You are one bad Thanksgiving dinner guest away from losing your savings. In case of a fire, flood, or natural disaster, your money may be looted or destroyed. If your funds are in a bank, you can retrieve the funds with your debit card and/or the proper ID, even if, God Forbid, your home is no longer standing.

Benefits When You Use a Bank

There are several, including:

Using direct deposit (electronic transfer) of your funds, into your bank account. Funds from your paycheck, social security checks and/or tax return checks, will be available immediately. The full amount of the check will go into your account without a 1%-3% deduction from your local check cashing spot.

You can transfer funds in between your accounts and to other people, online, by phone and at the ATM. You can wire money from your home, online.

You can use your bank debit card to purchase items and services in person and online. The process of purchasing airline, bus and train tickets, commuter rail passes, rental cars, and hotel rooms can be streamlined with your debit card.

You can pay your utilities, rent, tuition and other reoccurring bills electronically. The payments credit to your accounts immediately without a transaction fee.

Your money is safe and available in case of robbery, burglary, fire or natural disaster.

You are creating a relationship with a banking institution. Should you need a home or business loan, a line of credit, investment products, traveler’s checks, etc., you have established yourself as a “customer.” The services of that bank are now available to you.

Choosing a Bank or Credit Union

There are many types of banks to choose from. Each bank has different incentives and features. Some have high fees, but many services, hundreds of branches and ATMs all over the city. Some have lower fees, only one local branch with several ATMs. Some banks have “packages” where you can eliminate or reduce your bank fees by setting up direct deposit or automatic bill pay with your account.

A Word on Credit Unions

Credit Unions are non-profit banking institutions owned by their members. Credit Unions are opened by churches, civic organizations, state and municipal employees. Many are open to family members of current members. If you are trying to put your funds in a smaller more personalized banking institution, ask around and find out if your house of worship, employee group, union or family members have a credit union. You may be able to join. The advantages of joining a credit union include lower fees, higher interest rates and more individual attention, better customer service.

Choosing a bank or credit union is a consumer issue. Make sure you choose one that meets your needs in terms of location, access to your money through ATMs, and customer service. Go in, sit down and talk to the customer service people. Research using friends, family and the internet. This is an important decision. This is where you will be keeping your money.

Trouble In My Way

If you cannot open a traditional bank account, you may want to consider opening an online account. Many large commercial banks have an online component. You are able to open a checking and/or a savings account online and receive a debit card by mail.

There are also banks that are completely online with no brick and mortar branches. Internet Banks process transactions through the mail, apps, phone and the internet. Because the overhead costs of running such a bank are greatly reduced, these banks pass the savings on to the customer.

ChexSystems

ChexSystems is a credit reporting agency specifically for bank accounts. If you bounce a check and do not make arrangements to resolve the issue, the bank may report to ChexSystems. When you try to open an account at a new bank, the new bank may use the ChexSystem reporting to determine whether they will allow you to open the new account.

Just like a traditional credit report from Experian, Equifax and TransUnion, you can request a copy of your ChexSystems report, review it and dispute errors. However, the best course of action is to try to resolve the issue with the bank where the bounced check occurred. Try to make a payment arrangement and get the matter cleared up. It will save you a lot of trouble, going forward.

Happy New Year!
Let’s Be Careful Out There

WHY YOU SHOULD TITHE - EVEN IF YOU DONT GO TO CHURCH

Tithe (noun) - A tenth part of one's annual income contributed voluntarily or due as a tax, especially for the support of a religious institution.

Tithe (verb) - To contribute or pay a tenth part of (one's annual income).

One of the Biblical references for tithing can be found in Malachi 3:10. Many religions encourage a one tenth donation to the religious institution or to charity, but you don’t have to be religious to tithe. If you think about it, it’s a very small amount. If you donate 10% of a dollar to a good cause, that’s a dime. You still have ninety cents to use for other pursuits. Donating a tenth of your income to a religious or charitable cause is a good idea. Let me tell you why.

Contribution to Your Community
Although we may call it by different names, many of us tithe at our houses of worship. The funds are used for the upkeep of the church, mosque or synagogue, etc. But many religious institutions also double as social service agencies for the community, providing soup kitchens, food pantries, child care, elder care, and educational programs. When the parishioners donate their tithes, they are also contributing directly to the upkeep of their community.

Even if you do not attend services anywhere or subscribe to any religion, you can contribute your dime to a local or national non-profit organization working on an issue you are passionate about. Small regular donations can mean the world to a local non-profit. Do a quick Better Business Bureau and/or Google search to weed out fraudulent groups. Then take your dime and make a difference.

Whether due to religious obligation or social consciousness, your life improves when your community is doing better. And giving actually feels good.

Budgeting

Budgeting is not the second “b” word. When you realize where your money is ACTUALLY going, you can make better decisions about where it SHOULD be going. With the real numbers, you can adjust even the tiniest amount of money to do more of what you think is important.

When you decide to give 10%, it may be your first time. Your money may be as tight as a drum and you may need to reassess and readjust your spending to make everything fit. This is a positive opportunity to take a look at where your money actually goes, as opposed to where you think it went.

When I went to my nutritionist for the first time, she had me write down everything I ate and what time I ate it, for seven days. I wasn’t supposed to change or alter any of my eating habits just yet. We just wanted an accurate look at the calorie count, and the timing of my food intake.

Try doing the same with your money. For a week, keep a running tab of what you spend. Don’t change anything, just observe. Carry a small notebook, or make a list on your handheld device. When you get seven days of spending in black and white (or brown and yellow, on your iPhone) you can see clearly where your money is going. You can see where that lost second sock in the dryer money has gone.

For instance: if you get coffee and a breakfast sandwich from your favorite fast food coffee restaurant every morning, you spend about $5 a day, five days a week. You probably also get one weekend coffee to curtail that caffeine headache. This comes to about $28 a week, approximately $120 a month. Or, you can buy your favorite coffee at the grocery store, and make it at home. You can also cut back on some of the breakfast sandwiches. The remaining funds could be used for a utility bill, gas for your car, or tithing.

Drop a Dime on Yourself

Tithing or donating 10% of your income can help you to view and spend your money in a different way. This can also change how you spend money on yourself. Back in the day, your older relatives may have had a “Vacation Club” or “Christmas Club” savings account where they put a little aside periodically during the year so they could be ready for the holidays or that annual getaway. Nowadays, because of technology our parents and grandparents never dreamed of, transferring money and putting a little aside is easy to do.

When you decide to tithe and review your budget, you can determine how much you can put aside each paycheck for yourself. Remember that $5 a day spent at the coffee shop we talked about earlier? Could you skip a day and put $5 from each paycheck in a savings or money market account at your bank? What if the $5 was direct deposited into your savings account at the time you got paid, so that you wouldn’t even “miss” it? You can adjust your direct deposit at your HR Department, or in some cases, at your bank.

As these funds accumulate, you could use them for a vacation or holiday. You could leave it in the account, to be used for emergencies. Or you could let it grow into seed money for your home business or your new home. Once you take a closer look at where your money is going through tithing and budgeting, you can take control of it. And the sky is the limit.

Bonus: A Word about Banking

Banking is not the third “b” word. I will write more about this issue in a later post. Many of us are afraid of, or distrustful of banks. Because of this, many of us also stand on line for hours at a local bank or check cashing spot every payday, to cash a paper check.

Opening a bank account benefits you in many ways, including:

• the ability to direct deposit your paycheck, social security checks and/or tax return checks,
• faster, safer access to your money,
• the ability to transfer funds between your accounts, or to other people, online, by phone or at the ATM,
• electronic purchases with your debit card in stores and online,
• immediate online bill payments including utilities and your rent without paying an additional fee, but most importantly,
• you can eat lunch on your lunch hour on payday, instead of standing on line to cash your check!

If you don’t have a bank account, consider opening one so you can protect your hard earned cash.

Let’s Be Careful Out There.

WHEN THE PARTY’S OVER

After the holidays, you may have a hangover. However, your hangover may not be alcohol induced. You may open your credit card bills in late January or early February and get a spinning feeling in your head. Here are some black coffee, dry toast and a couple aspirin to help you through the post-holiday, bill opening season.

Open and Review Your Mail

Open all of your mail. Especially the bills. Discounts, rebates, coupons, time-sensitive legal notices and mistakes on your bill, usually come in the mail. If you don’t open and read your mail, you may be missing very important information or deadlines.

For instance, when credit card companies are sued and customers are asked to join the class action lawsuit, or notified of a refund, these must be done in writing. If you don’t open your mail, you could miss the good news right along with the bad.

Prioritize Your Bills

Anything having to do with your essential needs, including housing, food, utilities, car note, childcare must be paid before any other bills. Ask yourself if the bill in question, when unpaid, will leave you and your family in the dark, hungry or on a park bench. Pay those first. Collection agency calls for credit card bills can come daily. However, legal notices about foreclosure and housing court only come in the mail a few times before you lose your home. Small dogs bark incessantly. But the big dog only has to bark once.

Credit Card Bills

After the essentials are taken care of, move on to the credit card bills. If you are the average American household, you have four or more credit card accounts open. When you make a late payment, you may receive a late fee on your bill. However, a late payment can also cause your interest rate to go up on that card and your other cards. With the merger and buyout of many major banks and major department stores, many credit cards that were owned by two or three different banks are now owned by the same bank. Prioritize these payments, as well.

Highest Interest Rate Goes First

Pay off the one with the highest interest rates (“APR”) first. This is the most expensive credit you are using, so you want to pay it off first. Because of changes in the banking law over the past four years (the Credit Card Accountability, Responsibility and Disclosure Act of 2009 “CARD”), your interest rates are prominently displayed on your bills in big tall numbers. The higher interest rate cards are usually the department store or affinity cards. When you signed up, they gave you an incentive gift like some free miles or a teddy bear. However, you can use a major credit card at the same store, usually at a lower interest rate. Consider paying off the higher interest rate cards and closing them. Use your major cards instead. The interest rate is lower and the money is cheaper.

A Word on Transferring Balances

Some cards may offer to absorb the balance of another credit card at a lower interest rate. Please read the fine print on any such deal. The lower interest rate may be an introductory rate. Find out when it ends. Your interest rate may increase if you miss a payment or make a late payment. Everyone makes mistakes. Make sure you find out what the penalty rate is. You don’t want to get caught with the larger balance on a card with an increased or penalty rate. From the frying pan into the fire.

Second Mortgage/ Equity Loan
Some credit card holders opt to take a loan against their homes to pay their credit card debt. Up Side: The interest rate on such a loan will almost certainly be lower than the original credit card interest rate. Down Side: The home is now encumbered by additional debt. This is not the best option for paying credit card debt. However, this would be a decent choice for a family who is committed to making a serious change in their spending habits and need a fresh start.

When You Need Help

Don’t let shame or fear stop you from getting the help you need if things go horribly wrong with your bills. Scam artists posing as “credit repair” companies play on shame and fear to scam people out of whatever money they have left. You are not alone in your debt, many of your family members, neighbors and coworkers are struggling financially. Hold your head up, do your research and get the help you need. You can do a Google search on any credit counseling organization you decide to use. But it’s a good idea to make sure the organization is certified by the National Foundation for Credit Counseling (NFCC), a non-profit organization that monitors and certifies credit counseling organizations.

The Seven Year Itch

Your credit report, much like fine wine, gets better with time. Due to contract law, most bad debt “ages off of” (stops appearing on) your credit report in seven years. Some debt does not age off. Child support, back taxes and student loans don’t go anywhere. You must make arrangements to pay these off. Also bankruptcies and debt where the creditor has gotten a “judgment” against the cardholder, can stay on a credit report much longer.

Order and review your credit reports at least once a year. Its like an annual checkup for your money. If you've had a rough patch in your financial life in the past and you’ve steadily improved since then, that will appear on your credit report. This progress, ie., late payments followed by a series of regular and on time payments, can help prove to potential new creditors that you are back on your feet.

Let’s Be Careful Out There.