FISCal Cents

Generosity pays

2011-05-10T15:47:00.005-05:00

Giving can be a touchy question for many people. Often when I am reviewing monthly expenses with my clients here as a financial counselor and I get to the "Donations" item on their monthly expense worksheet, they scoff and say something like, "I'm the one who needs a donation." I frequently will press the matter a little further and encourage them to consider giving. And when I say giving, I mean money. Time is great, clothes are great to donate, but I'm talking about money here.

Giving can help you take a step toward freedom, freedom from the tyranny of money. Giving sets in motion a principle of the universe: when you give you receive. Suze Orman discovered this principle in working with clients as a financial planner. In her book, "The 9 Steps to Financial Freedom," Ms. Orman tells how she learned to give and how that resulted in prospering more. She decided to try it out on her clients and she found that as clients followed her advice to regularly give to charity, they prospered more. She says, "The better people felt about themselves, and the more they kept their hands open to receive by relinquishing money, the more their financial situation improved. It was thrilling."

If you are feeling like things are too tight or that there is not enough, release your grip. Give some money away. See if it will not come back to you and more. Furthermore, a newletter today from Learnvest.com points out: "The benefits of giving to others have been documented on a neural level in MRIs—even those forced to give money away showed activation in brain areas typically associated with receiving rewards." It makes you feel good. And feeling good can generate a lot of positive energy in your life. Besides it helps people, and gets your focus off your problems. Give it a try and report back how it works. I'll be waiting to hear.

Know the Score!

2011-03-22T17:55:00.004-05:00

It's only a three digit number, but what an impact it can have on your life. The three digit number I'm referring to, of course, is your credit score. Do you know what your score is? Your credit score is a number that lenders and businesses use to determine how risky it is to do business with you. It is based on information that is in your credit report. A mathematical formula is used to rate you according to how you pay your debts(do you pay on time?), how much debt you have, how much of the credit available to you are you using, and many other factors.

How can it impact your life? A low credit score can cause insurance premiums to be higher, interest rates on car, house and other loans to be higher or you may not get a certain job. It is told that a poor credit score can cost you $250,000 over a lifetime. A good score gets you the best interest rates, premiums and other opportunities.

Have you put off finding out what your credit score is? Sometimes fear or maybe procrastination prevent us from taking charge of our financial lives. If you want to be in control of your finances instead of being controlled by them, face the fear and take a step to secure your future. Once you know what is there, you can take steps to improve your financial life. Take advantage of the class being offered here at FISC: Know the Score: Building and Keeping a Good Credit Score. For more info follow this link: http://www.fisc-cccs.org/assets/docs/Building%20Good%20Credit%206_2010.pdf . In this class you will learn some of the secrets of credit reports and you will also get a copy of your credit report from Transunion.

Day 26 and No Starbucks!

2011-01-26T15:51:00.003-06:00

So me and my family have been challenging each other to save money...as much as we can...this year. One big expense was eating out every Friday night. The average ticket was about $38 plus tip. We have opted to eat out only 1 time each month and make homemade piiza on the other Fridays. Savings...$130

This doesn't include the last minute runs to McDonalds or Culvers because we were "too tired to cook" That was about another $50 per week. Now we stay home and cook. It might be Mac N Cheese and Spam but the Savings.....$200

I also decided to cut all trips to McDonalds for coffee or to Starbucks for even better coffee. Average was about $4 per work morning. Now I pack my breakfast and drink work coffee. Savings...$80.00

We also decided to stop any gas station runs for soda, water, candy, whatever...this was probably about $10 per week. Savings.....$40

When we get our tax return, we are going to pay off our vehicles...CAN"T WAIT! That payment is $400 per month.......Savings.....$400

I started making my own laundry soap. I was an avid TIDE user to the tune of $9 per jug. The homemade stuff works just as good and only costs $3 for 10 GALLONS! (Yes you heard me right). Savings....about $10 per month

MONTHLY GRAND TOTAL SAVINGS (drum roll please)........$860!!!!!!!

Can you say....Cha Ching??

Dave Ramsey-Check your facts!

2011-01-25T13:12:00.003-06:00

Many of us here at FISC are Financial Information nerds-we just can't get enough. So we listen to many "experts" in the field such as David Bach, Suze Orman and Dave Ramsey. And we love them! But recently an article by Dave Ramsey was brought to our attention and had us giving him second thoughts. His article, "Do Debt Management companies Work?" was filled with errors and gross generalizations.

This especially disturbs us because it can stop people from coming to FISC to get help. Helping people is what drives us. FISC was started in the 1980's by a man, Dennis Jansen, who was on the verge of suicide because of his struggles with money. He went to his friend John Robinson for help. John helped Dennis learn how to budget and pay off his debt in a non judgmental way. The two of them began sharing their experience with others, usually at churches and found that many many people wanted help with their finances. They took a leap of faith, quit their jobs and launched a ministry to help people who were stressed and beat up by money.

We still teach the basics of what they taught, and use the same tools they used to help people get in control of their finances. The core concept is that we all must spend less than what we earn. When someone comes to see us, that is where we begin. How much do you earn? How much do you spend? How can you spend less than what you earn? If a person would have a large amount of credit card debt, and other types of debt, we can offer debt management plans.

A debt management plan usually allows you to lower interest, may lower payments and pay off the debt in 5 years or less.

Here is what Dave Ramsey said: "Debt management companies are a bad idea. Some of these outfits act like it's rocket science to try and get out of debt....Continue to reinforce to your clients that real debt help is found only in behavior change. That's why these companies don't work--they simply don't treat the source of the problem. True debt management is about one thing--controlling your money." Let me answer him. We agree! Our theme is "Changing the way you think about money." We work extensively to teach and challenge our clients to do just that. Now there may be what we call, "Debt Mills" out there who just want to figure out what your payment is on a debt plan, sign you up, and leave you without any further knowledge of how to manage money. But that is not us.

We have helped many people pay off debt, who if were not for the debt management plan would have had to file bankruptcy. Dave Ramsey goes on to say that being on a debt management plan will trash your credit. His words: "When someone uses one of these companies and then tries to get a conventional, FHA or VA loan, they will be treated as if they filed Chapter 13 bankruptcy. Not only that, but mortgage underwriting guidelines for traditional mortgages will consider their credit trashed." This is completely false. So, how does being on a debt management plan affect your credit score and ability to get a mortgage?

Being on a debt management plan is not factored into your credit score at all, so in and of itself will not lower your credit score. Over time, with paying off your debt on time every month on the debt management plan will improve your score. Now there can be a problem if a creditor says you have a past due amount and continues to report you past due. Your solution to that is to catch up on whatever that past due amount is. As far as mortgages, the lender will want you to be on a Debt plan for at least 12 months before getting a mortgage. After that you are considered as any other person, with the emphasis on the score. After a year on a debt plan you will have decreased your debt, so your score at that point should have improved unless you have late payments or past due amounts. That is the same on or off a debt plan.

A debt plan is not a bankruptcy, cannot be rated as a bankruptcy on the credit report and only those who are not knowledgable would consider it as a bankruptcy. And they would be wrong. From what I've seen, the ones who describe it that way are trying to sell you a product, either a refinance or a bankruptcy.

A Debt management plan is not for everybody. But financial counseling is for everybody, no matter who you are, it never hurts to get another perspective on your finances.

New Foreclosure Prevention Workshop

2010-06-30T11:22:00.004-05:00

If you or someone you know is facing foreclosure, FISC's new workshop will prove to be very beneficial...

FISC offers FREE housing counseling services to help homeowners understand their options to avoid foreclosure. REGISTRATION IS REQUIRED Call 800-366-8161

Learn about:

*Avoiding foreclosure rescue scams
*How to work with your loan servicer
*The role of your housing counselor
*Additional community resources
*The foreclosure timeline
*Documentation required by lenders

5:30 p.m.- 7:30 p.m.
Menasha Office: Every 2nd Thursday of the month
Oshkosh Office: Every 3rd Thursday of the month
Green Bay Office: Every 4th Tuesday of the month

PLEASE NOTE: Oshkosh and Green bay workshops will begin in July. Menasha will begin in August.

We passed the test!

2010-06-01T09:49:00.001-05:00

As of May 7, 2010 FISC was once again accredited by COA. “What does that mean?”you may ask. Let me explain that a little.
A team came in and measured what FISC does against national standards of best practice, which emphasize services that are accessible, appropriate, culturally responsive, evidence based and outcomes-oriented. The process took about 9 months, many hours and many people. In addition to the Team members at FISC; representatives from Finance, People, IT, Environmental Services and the Leadership team were involved. All of the help was invaluable.
FISC wants people to know that it is a non-profit organization that people can trust. We will always have the interests of the people we serve as most important. By being accredited there is more proof that we care enough about our clients to go through this intense process and continue to strive to give the best care available.
FISC is a Consumer Credit Counseling (CCCS) agency that helps clients with budgeting, getting out of debt, housing issues, bankruptcy and financial education in the community. We are proud to be a program of Goodwill NCW.

Facing Foreclosure?

2010-05-17T08:20:00.003-05:00

As many know and have heard on the news, foreclosure is a growing problem in Wisconsin. If you or someone you know is facing foreclosure, please take note of the following information...

There may be programs available to you to help your situation. Check with your lender to see if you might me able to get a reduced payment through a mortgage modification or obtain a forebearance (payment plan to catch you up).
FREE counseling is available! Contact your local CCCS agency for housing counseling. YOU SHOULD NOT HAVE TO PAY A DIME FOR FORECLOSURE ASISTANCE/HOUSING COUNSELING. STAY AWAY FROM ANY COMPANY THAT CHARGES AN UP FRONT FEE TO HELP "GET YOUR HOME OUT OF FORECLOSURE." THEY ARE SCAMMERS!!!!
Beware of counseling agencies that also offer property flipping (in other words, if they can't help you with your mortgage they "conveniently" list and sell your property at a profit).
Some counties offer a mediation program where you can request mediation to help resolve your mortgage problems during a scheduled mediation session. The cost is $100 and free housing counseling is a part of the process.
If you are contacting your lender on your own to work out a modification or agreement: document all conversations, keep track of names and extension numbers and fight the good fight! It can be very frustrating calling a mortgage company and getting transferred, disconnected and given inconsistent information. Contact your lender at least weekly for status updates.
Do not hesitate to get help when needed. the worst thing you can do is nothing at all. Ignoring your mortgage company will not "make it go away." Call FISC for help.

Young couple wins financial makeover contest

2010-05-11T11:38:00.002-05:00

It was my joy and privilege to work with this year's winner of our annual Financial Makeover Contest. Corey and Ketrina were like many others, using credit cards to establish their first apartment, then their second and third. They said they used their credit cards as though they were a checking account. Sound familiar? The end result unfortunately is financial stress due to the credit card payments that come due every month. So they ended up paying for yesterday's purchases today, and into tomorrow. Money became very tight. Worries increased. It became hard to sleep at night. And they had a dream, for Ketrina to be able to stay home with the children. But that dream looked impossible, too many bills to pay.

But Corey and Ketrina dug right in and worked out a balanced budget (meaning expenses were less than income). They began to live by that spending plan, setting up cash envelopes for the things they purchased daily and weekly. No more credit cards, no more using debit cards. If they had the cash they could buy it, whatever "it" was. If not, they couldn't. It almost became a game to see if they could have money left in the envelopes by the end of the week. Then they saved that money! Wow, I think I would have spent it on something "special."

They completely changed the way they think about money, which is our theme here at FISC. I'm so proud of them, and you can do the same thing! And they achieved their ultimate goal, Ketrina is now a stay at home mom! Congratulations to them.

Muddle Through

2010-05-11T10:02:00.002-05:00

I remember hearing General Schwarzkopf say in a TV Interview during operation Desert Storm, that they made their plans and then carried them out, but sometimes when they got on the ground, in the midst of the battle they found themselves in a confusing mess (I'm paraphrasing). So then he said when that happens, they just have to "muddle through."

Many people that I am seeing nowadays are in that situation. Everything is a mess. There are no easy answers. There is not enough income to pay all the necessities. For them the best advice I can give is to "just muddle through. Events will unfold as time goes by, decisions will be made or forced upon you, just muddle through the best you can."

We all have to understand what we have control over and what we don't have control over. Act on what you can act on, and the rest, well, leave to God. Learn from the situation as much as you can, forgive yourself and believe that you will be ok. Sometimes life's richest lessons and experiences are gained in the muddling times. I know it's hard. I've been there. You will be ok.

Hello

2010-04-21T08:48:00.004-05:00

Hi, My name is Dana Berger and I am the new housing counselor at FISC. My main focus is helping individuals and families prevent foreclosure.

In todays challenging housing market, it never ceases to amaze me how many families are affected by foreclosure, job loss and the threat of not being able to keep up with a mortgage...so first thing to remember if you find yourself in this predicament is - YOU ARE NOT ALONE!

The best piece of advice I can offer to anyone is don't wait too long to get help if you are struggling with making ends meet. FISC is here to help you set up a manageable household budget and work with you to try to avoid foreclosure at all costs.

As most of you already know, there are many programs offered by the government and the lenders to help you in a time of crisis. Sometimes, however, these programs are not always easily attainable and not everyone qualifies to use them.

For more information about foreclosure prevention, please feel free to contact me at (920)968-6337 or email me a dberger@fisc-cccs.org ....AND DON'T WAIT TOO LONG!

Debt Settlements, Should You Try Them?

2010-04-20T19:31:00.002-05:00

I am often asked, Do you know anything about those companies that advertise on TV that they can reduce what you owe, those companies that say you can settle for pennies on the dollar? What these people are referring to are debt settlement companies. If the people we see here in our offices are any indication, these companies are rarely a good idea. What most of them do is collect a monthly payment from the clients. For the first several months that is all they do, collect your money. A large part of this money goes to their fee. After they have collected their fee then they begin accumulating money with which they will make settlement offers to your creditors.

Unfortunately what happens while they are waiting to accumulate enough money to offer a settlement is that the creditors call you for payment. And they may call you every day, more than once a day. Eventually many of the creditors will take it to court to obtain a judgment so they can garnish your wages. The settlement companies cannot protect you from the actions of your creditors.

In addition, each month the creditors are reporting you to the credit bureaus as paying late, so your credit score is greatly damaged.

So what should you do? The only way debt settlements work well is if you have gotten behind on paying your debts and you have a lump sum of money already available with which you can pay if you reach an agreement with the creditor. Sometimes people are able to do this if they receive a large amount of money from a tax return, selling something, an inheritance or some other type of windfall. That type of debt settlement you can do on your own. I'm not saying it will be easy, but you can try and arrange that yourself.

If debt settlement is not an option, then you will want to see if you can do a debt management plan to get reduced interest on the debt you owe. If you have no other options you may need to consider bankruptcy. In any case, come and talk over your situation with an experienced counselor. A counselor can help you decide on the best option for you.

Don't Wait, Come in Now

2008-06-27T10:41:00.003-05:00

One of the things we financial counselors regret is seeing people wait too long before they come in for help or advice. Often as we look over the paperwork that is brought in to us we think, if only they had come in a year ago, when they first realized they were struggling. It would be so much simpler to resolve.

Often clients will express to me: I thought I could do it on my own, but I can't. There is no shame in seeking counsel! It's the smart thing to do. Seeking advice from a budget, credit or financial counselor does not mean that you are less than others. It doesn't mean that you have failed. And it doesn't take away your freedom to make your own choices.

As financial counselors we see many people in many situations so we get experience that the average person cannot gain. And we know of resources that you may not know about.

Many financial counselors have gone through their own struggles and can truly empathize with you.

So if you are beginning to feel uneasy about your finances, if it is getting harder to make ends meet, if you have started using credit cards to pay normal living expenses, do not wait--call today and make an appointment with a credit counselor. You may save yourself a lot of trouble. It's the smart thing to do.

Is your desk buried in papers?

2006-01-17T10:54:00.000-06:00

A couple of years ago I got it all figured out and had a perfect system to handle all my papers. Wow, the dining room table was clear every day! But look at my desk at home today (and my dining room table) you'd never know I have a system. So believe me when I say I understand what it's like to struggle to stay on top of all those papers that come in every day.

But there is one thing that I have done and keep up with all the time--having one place to put bills when they come in. If you need a place to start, this is it. Designate one place to be a container for the bills. I like Julie Morgenstern's advice in her book, "Organizing from the Inside Out," to choose a container that you really like. I use a basket and keep it on my desk. Other people use a file folder in a drawer labeled, "Bills to Pay." You could also use an accordian file with 13 folders one for each month, and one for the bills.

The container itself is not important, what is important is having one and always putting your bills in there. While you are at it, find a container for your receipts. Again you can pick one that you really like. I use a wicker index card file box with a lid which I keep on a shelf. Whenever you have a receipt for an item that may need to be returned, put it in that container. Keep it simple. Usually you won't need any receipts, but when you do need to find one it will be in there, with the most recent ones first, and will only take a minute to find.

Along with this choose two days a month when you will pay bills. This is much simpler than writing checks each time a bill arrives. Mark these days on you calendar. Keep a list with your bills as to which get paid on the first date of the month and which on the second. Then there is no forgetting. I have found the billpay service that is free at my bank to be a tremendous time saver, as well as saving the cost of postage and checks.

These simple changes can make a huge difference in your finances and your peace of mind. If you need help, at FISC we have counselors who can help you to work out a system for yourself and help you figure out how to pay all those bills. Just return to our homepage for more information.

So you blew the budget, now what?

2005-12-28T11:32:00.000-06:00

Christmas is over, just like that, and some of us spent more than we should have. And maybe we (gasp) put it on a credit card. Can't pay it all off in one month? Now, what should you do?

Most importantly don't give up and throw out your budget plan. Just as with diets, it may be tempting to say, budgets don't work for me, see I proved it. There's just not enough to go around.

Instead of giving up on gaining control of your money, take a step back now and develop a plan to deal with the holiday debt.

To be honest, my credit card bill in January is going to be bigger than expected. I have a credit card that I use for gasoline and other purchases, which I pay off in full every month. (I use this card because I earn books with it). But I am anticipating this bill is going to be too big. For one thing I had two major car repairs, one the head gaskets had to be replaced, and the second was for a car accident and we had to pay the $500 deductible. So we had a total of $1150 in car repairs! And yes, I may have exceeded my Christmas budget a wee bit..., well, ok, quite a bit. I did resist that ipod and game system I mentioned in a previous post, but...there were other things. Have I failed? No, and neither have you. We have a problem to solve, a challenge to face. If you, like me, have been improving your money management over the years, you will also be able to work out a solution and get back on track in no time. And if you are just starting out, this experience will be a great teacher.

So, what to do. The first thing is to stop using the credit card until the balance is paid in full. Take it out of your wallet or purse, freeze it in a block of ice if necessary, but stop using it. Then, develop a plan for paying off your debt. See if you can pay it off in 3 months or less. If you paid it in three months calculate what those payments would be. Look over your spending plan and see how you can come up with those payments. Cancel netflix for 3 months, limit eating out and other entertainment, don't buy any new clothes, etc. Look for expenses that you can cut, just for the next three months.

Can you earn some extra money? Do you have any items you can sell? Can you donate plasma for these three months? (That will earn you about $200/month) Can you take on any side jobs, do some babysitting?

Take on the challenge and be creative. And if you need help finding solutions, come in and see one of our financial counselors. We can help you develop a spending plan that fits your life, and also help you start what we call a "Put N Take" savings. This is like your own personal Christmas club account, but it includes money for all those unexpected expected expenses, such as car repairs, eye glasses, and gifts.

We welcome your comments. How are you handling any post-Christmas debt? How did you do this year? Have you improved, if so how?

Christmas Spending

2005-11-22T10:43:00.000-06:00

What better time to start a blog on using fiscal sense than during the Holiday Season? Believe me, all of us are tempted to spend or do more than we should. I am going to be inviting all our FISC (Financial Information and Service Center) financial counselors, and perhaps others to chime in here to discuss their favorite ideas for making it through the holidays without overspending.

Even among us financial counselors we have a wide variety of styles and personalities, some of us are spenders by nature and some very frugal. What am I tempted by this year? An I-Pod nano for my 20 year old college student. The new X Box for the family--and 15 year old son. Yes, I know these are just material things. But it is at this time of year when family members start talking about what they want. And I like giving my kids things that will delight them. It's a shame that it's all tied into the Christmas season. Maybe it would be a good idea to separate gift giving from Christmas, and not try to find out what everyone wants. Maybe at some other time in the year I'll surprise the family with something special. If I do, it will be paid for, and not put on a credit card.

So, that's my first tip for holiday shopping. Focus on what you already have--your friends, family, many material things and be grateful. As the saying goes, want what you have. And when you do purchase a gift, do so with cash that you can afford to spend, don't create a debt or a financial problem for yourself in the name of Christmas. Ginny

One of the fun ideas from our family is one we did with the adults for several years. We exchanged names in secret, usually on Thanksgiving Day. Then we bought that person a gift for $2 or less. "Less is better." If we found something for free, that was a real deal! On Christmas Eve after the children had opened their gifts from grandparents and aunts and uncles, we adults got to do our exchange. It was the most fun of the gift-opening. We took turns so that everyone saw what we got and only then knew who had drawn our names. The gift could be funny or serious - anything at all.

One of the fun things I remember was a straw hat with flowers and ribbons, sort of like Minnie Pearl was noted for wearing. It was given to my mother and then reappeared the next year for a sister-in-law. One person got a $.49 handle for a hammer, wrapped in a cardboard paper towel tube. The recipient said he really needed it! I got an "elephant ear" cookie, since I am an elephant collector. The challenge of finding something inexpensive, appropriate and fun was the novelty of the exchange. Fun doesn't have to cost a lot! I hope you have fun and don't spend a lot this Christmas. - Janet

BAH HUMBUG! I don't like the seductive urge to spend even more! Look over those newspaper and television ads with caution. The season seems to emphasize the lack of basic needs of some, more than the rest of the year. This is ok. It promotes awareness and sharing! It would be great to see the Christmas giving continue throughout the year for those in need because it doesn't just begin and end December 25. Isn't community and compassion what the celebrating is about anyway? When you are taking care of your basic needs, the things we take for granted, think about giving basic needs. Watch, look and listen this special time of year and you will be aware of the needs of the people in your community that you can assist throughout the year. Giving is a sure cure for that Scrooge in me. One inexpensive thing I enjoy is the snow, fresh air and sharing stories. Thanks for your ideas! Janell

To keep the "Happy" in Happy Holidays, know that you don't have to do it all! And look beyond the cost of the gifts to find ways to save your money and your sanity.

Make the meal a pot-luck occasion.
Get involved in a cookie exchange with 2-4 friends. Make one kind of cookie to share and end up with 3-5 different varieties. (Try to avoid a larger exchange group, or you'll still end up spending a lot of time in the kitchen)
If you like to change your holiday decor from year to year, consider shopping Goodwill or summer rummage sales for great buys on unique items.
Check the after-holiday sales to get next year's decorations, holiday cards, and seasonal paper products. But set a limit and don't overdo a good thing!
Find creative and environmentally friendly ways to wrap gifts: in pillow cases or dish cloths; in reuseable gift bags from discount or close-out stores; in hand-decorated grocery bags (the kids will enjoy helping with the decorations!)

Make frugal shopping a game; keep the cost and time investment low, and you will reduce the stress on the budget while leaving more time for enjoying the season. - Kay

My favorite gift to make for friend and family is crochet towels for the kitchen. It's a gift that can be used all year round and by the time the next Christmas comes you can give it again.

Another activity I do when shopping is checking out the clearance racks. I find great bargains and usually can use them as gifts throughout the rest of the year. I spend so little that if I do not use it I can donate it to a good cause, such as Goodwill or domestic abuse shelters. - Mary T.

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2005-11-19T08:52:00.000-06:00