Do You Still Go Into a Banking Center? Automate Your Finances

I remember when I first got into banking 20 years ago there was such a push for automated banking that by now I thought there would a great reduction in the amount of banking centers. Especially now that there  are so many alternatives to banking.

One of the greatest things since the invention of the ATM itself is Bank of America's Deposit Images ATMs. Now more than ever, Bank of America customers are looking to ATMs for more than just cash. and the bank is responding to their needs. The bank recently completed a conversion to Deposit Image, and this network of more than 13,800 Deposit Image machines eliminates the the need for envelopes, tallies the total, and provides a receipt that includes an image of all deposited items. I love these ATMs and think these are the demise of banking centers in the future. You can make a deposit without out waiting in line. You can even get a copy of the check you deposit if are worried it will get lost.

With the summer season getting underway Bank of America has several other automated banking services to help you bank while you are traveling.

Here are some tips for maintaining your finances during Summer travel:

• Stay in control with Text Banking: With Text Banking, you can access your account balances, recent transaction and credit card bill information from your cell phone. It's simple, convenient and provides information within seconds so you can view your account information whether at the beach or on the road to your destination. Learn more about Text Banking or call 800-604-9961 for details. 
• Make bill paying easy with Online and Mobile Banking: Online Bill Pay lets customers pay virtually anyone, set up recurring payments and set up bill pay  reminders. You can also transfer funds or pay bills from any web-enabled cell phone using Mobile Banking.
• Stay on top of your money with Alert Services: There is a large selection of alerts (41 to be exact), including several real-time alerts that are sent directly to you when there is activity on an account. When you are away from home or a computer, you can easily set up balance thresholds so you can stay in touch with your finances.
• Get travel discounts through Add It Up: Add It Up® is a free and secure online shopping website that rewards customers with up to 20 percent cash back on their purchases at more than 270 online retailers. 
• Go paperless with online statements: By switching to online statements, you can manage your account easily while reducing mail waiting for you at home when you return. When you go paperless you can view the same information as on your paper statement. You can also see your cleared checks Online, plus receive an email notification when your statement is available online. 

Because Bank of America customers are able to to access and control their accounts from virtually anywhere with Online Banking and Mobile Banking, receiving alerts, managing accounts and paying bills on time is simple, and you stay in complete control of your finances at all times.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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Chase is Really Earning my Business

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

As you have probably been reading over the past couple of days I am a huge fan of Chase's Balance Liquidation Program. This program is a five year debt repayment plan over five years.

For my BLP plan Chase waived thousands of dollars in interest and over the limit and late fees. To me this is what needs to be done to really help consumers, who have had their incomes reduced by the current economic crisis.

If you have accounts with Chase and you need help repaying your credit card debt, definitely give the bank a call and talk to them about the debt repayment plan they offer.

In the meanwhile, Chase just sent me an offer to open a checking account with them. For opening the check account they are offering $100. A $100 just for opening a free checking account. Can't beat that, can you?

So not only has Chase quit charging me interest and waived thousands from what I owe,they are giving me a hundred dollars to open an account. What a way to earn my business. Thanks Chase!

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
• Follow us on Blogger 

Are You Ready to Give Your Bank the Boot?

From David Ellis at CNNMoney: Take this bank and shove it

When Abel Collins decided to end his three-year banking relationship with Bank of America earlier this year, he simply wanted to make a statement.

"I basically figured if Congress wasn't going to take action to reduce the size of banks or at least regulate the activities they were involved in, I'd remove my part of the money they [Bank of America] controlled." Collins said.

Big banks are nickel-and-diming customers in tough economic times.

"When I was closing my accounts, [Bank of America] would call me with a survey to see if it was the fault of any of their customer service people or tellers or bank managers," he wrote. "They never asked if it was the additional fees they were charging."

"Wells Fargo just laughed and the banker said he would probably do the same!"

Many consumers are choosing to do their banking with credit unions these days. Who can blame them. With banks socking to the consumer with fees and using tax money to bail them out, who could blame them. One consumer wrote "I'm very happy. It is like the banker in the movie 'It's a Wonderful Life'. It really is that way."

Banking Reform Isn't Going to be Easy

From Jia Lynn Yang at CNNMoney: Banking reform: Harder than is sounds

President Obama has finally presented a way to reform Wall Street that matches the scale of the problem.

--the president is going straight after the "too big to fail" issue, they banks may realize at long last, how much they've messed up in Washington.

Obama's proposal: Separate a bank's riskiest operations from the parts that are vital to the economy functioning, like deposits and loans to individuals and businesses.

Critics say the intentions here are good, but the dividing line between commercial banking and risky proprietary trading can be harder than you would think.

"In commercial banking you make loans. In investment banking you deal with securities."

"The thing is, loans have become instruments that are pretty fairly traded. You can't tell me the characteristics of a loan that makes it different from a security."

Many people feel that the economic crisis was caused by the bank's in-house hedge funds and private equity funds. But the majority of the problem was people buying homes that shouldn't have by taking out bad loans, which was then aggravated by derivatives and credit default swaps. Putting restrictions on the banks is not the answer everything is getting tighter and tighter and will only make things worse. Just restore things back to where they were before the dawn of the exotic loans. It's that easy. Plain and simple.

Wells Fargo Pulls Off a 4th Quarter Profit

From Julianne Pepitone at CNNMoney: Well Fargo swings to a profit

Wells Fargo shows a fourth-quarter profit as it repaid $25 billion in bailout funds.

The bank reported a fourth-quarter net income of $2.8 billion.

Wells Fargo earned 8 cents per share, compared with a loss of 84 cents in the year earlier quarter.

Analysts had expected a loss of 1 cent a share for the fourth quarter.

In the fourth-quarter, earnings per share share were reduced by 47 cents for preferred stock dividends and stock redemption's related to TARP.

Revenue rose in the quarter to $22.7 billion. wells' revenue totaled $9.48 billion.

Writedowns totaled $5.4 billion, or 2.7% of average loans, up from $5.1 billion, or 2.5%, in the third quarter.

Wells' earnings report came in along with a ton of other financial institutions such as Bank of America who reported a fourth-quarter loss of $5.2 billion.

Citigroup: Reports Fourth Quarter Loss of $7.6 Billion

Banks are still taking it in the shorts without any financial improvement as Citigroup reported today in a press release fourth quarter loss of 7.6 billion. On a per share basis the company lost 33 cents per share. While managed revenues were $91.1 billion for the year. The fouth quarter net loss was $7.6 billion.

Vikram Pandit, Chief Executive Office of Citigroup, reported they had cut costs by over $13 billion annually, reduced head count by 100,000, and reduced assets by $500 billion from peak levels.

David Ellis at CNNMoney reported: Citigroup suffers $7.6 billion loss

The bank also highlighted some encouraging within its massive loan portfolio. Credit losses fell to 7.1 billion during the quarter , down $800 million from the previous three month period.

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Financial Motivational Quote For January 9, 2010

"A bank is a place that will lend you money if you can prove that you need don't need it." ` Bob Hope

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Bank of America Providing Additional Customer Service on Twitter

However the economic crisis started at least banks are trying to provide better customer service.

Bank of America is providing a new way for customers to contact the bank with requests for help or information -- via Twitter, the free social real-time messaging utility. On November 9, the Twitter servicing team began responding to deposits, Card and Home Loans & Insurance related customer requests.

Since November 9, 2009, the number of followers has increased about 15% to more than 4,000 followers of BofA_Help on Twitter. Those customers have potentially influenced almost 1.7 million users on Twitter with positive posts about their experience and results. The bank has been on Twitter since January 2009 as a pilot mainly serving Deposits relayed queries and is now responding to queries related to the Card and Home Loans & Insurances businesses.

When customers with service problems contact "BofA_help" on Twitter, a member of the Twitter servicing team will respond with a tweet or message of no more than 140 characters at a time, the maximum length allowed by Twitter. Customers are then asked to contact by "DM" or direct message, with specifics of their concern and contact information to take then conversation offline. That way, customers can provide sensitive information, such as contact numbers, privately and safely. Customers are never asked for account numbers. Customers typically contact us through traditional channels, but some customers are turning to Twitter first as their preferred channel of choice. We are still encouraging customers to utilize the traditional service channels as needed.

"Given today's dynamic landscape, we have to think about servicing our customers in a broader way, far beyond the traditional customer engagement," said Mike DeCandido, Bank of America Customer Service and Solutions executive. "the advent of social networking, is an example of this philosophy at work, enables us to listen to our customers in real-time and gain powerful knowledge on everything from product enhancements to customer issues to financial guidance. Engaging customers where they are, and being relevant and useful, is a deliberate strategy in terms of our use of social networking."

What is Twitter and how does it work?

Twitter is a free social media/networking site note affiliated with Bank of America. It began as a convenient way for people to stay in touch with family and friends by allowing users to answer the simple question, "what are you doing?" users send short, 140 character messages called "tweets" to their friends and other users, called "followers." Today, it's grown to become a world wide, means of instant communication to anyone and everyone. Businesses also utilize Twitter as a direct form of contact with their customers, allowing them to address customer concerns in an open forum and stay in touch in real time.

Why is Bank of America on Twitter?

In January 2009, Bank of America joined Twitter so they could communicate instantly and directly with our customers to resolve their problems, address concerns and share information. The typical Twitter starter question is, "What are you doing?" However, they seek out users who express they have a problem with a bank product and ask, "Is there anything I can Do to help?" We're here to help, listen and learn from our customers - to continuously make banking easier, faster and more convenient.

How does the bank manage the Twitter account?

It is monitored on a daily basis for any incoming messages from customers. The Twitter servicing team responds to the question and takes the customer "offline" to determine if they can help. Customers are NEVER asked to give or provide account information.

How do customers know if they are actually communicating with a Bank of America representative?

Twitter users are known by their "@username" identity. Bank of America's is @BofA_Help. The official Bank of America Twitter profile is Twitter.com/BofA_Help. If you send a tweet to @BofA_Help (or receive one) you'll be communicating with a Bank of America associate who will gladly assist customers with their problem or concerns about Bank of America products or services, they will reach out to see how they can help. They encourage communication, but never disclose financial information via Twitter. We will never ask for (or discuss) Social Security numbers, account information, passwords, or PINs. Also Bank of America does not endorse or encourage clicking on links posted by other users, because these links may pose risks to your computer or take you to inappropriate sites.

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Will a Mortgage Modification Hurt My Credit Score?

Financial Elite receives lots of emails from readers asking how to go about getting a mortgage modification, but this is a new one, "Does a mortgage loan modification hurt my credit score."

It's a question we've never really thought about before, but still it is a very good question. Since you are looking for a loan modification you are probably already having a problem making payments or about to start. Hence your credit is probably already suffering battle damage.

But like most troubled homeowners you are probably thinking that a loan modification is probably your best foreclosure rescue plan and the best way to put an end to your financial troubles. And like most you don't realize that getting a modification can actually hurt your credit.

Like us, CNNMoney reported today that they received a flood of emails from readers complaining about the impact of trial modifications on their credit reports.

As we stated earlier, several people applying for modifications are already delinquent or are heading in that direction. Most feel that a modification shouldn't hurt their credit score, but the reality is, it should. Getting a modification shows that you could not pay your obligation as agreed.

CNNMoney talked to Jason Axelrod, a homeowner, who learned the hard way, that loan modifications will hurt your credit score.

Jason did not fall behind on his mortgage payments, but it was getting harder for him to make ends meat, as his property taxes went up and he was forced to cut back on his overtime. Jason was told that his credit would not be damaged by having his payment reduced by $565 a month.

When he secured his payment reduction his credit score was 750. After eight months of trying to make his trial modification permanent, his score had dropped to 644.

"It's completely destroyed my credit." said Jason. "If I had known it would affect my score, I would have never entered the program."

Even though his credit score declined, Jason did find some light at the end of tunnel as JPMorgan Chase made his modification permanent.

It is under debate what banks are reporting to the credit bureaus. Many servicers are inconsistent with following the guidelines. They are not always reporting that their borrowers have a modification.

Servicers are required to report all information about their borrowers, that includes modification plans. Borrowers may see improvement in the scores as they get brought current and they start making payments again.

Chances are over the initial three month trial period you will improve your financial situation, but give some thought where you are exactly before accepting a modification plan.

How to Keep Your Spending Under Control During the Holidays

With the holidays come endless to do lists, a non-stop shopping frenzy, and not enough time to stop and enjoy the cheer. A little technology can go a long way to help stay in control and organized, save time and reduce stress. Omar Wasow is a frequent on-air technology analyst and has been featured on NBC's "Today" show, CNN's "American Morning," "Live with Regis and Kelly," and Public Radio's "Tavis Smiley Show." He is also the co-founder of BlackPlanet.com.

Wasow recently appeared on "The Martha Stewart Show" to share his tips with the nationally syndicated show's audience and here are some of his tips:

Tip #1: Make Your List, and Check Your Deals Twice

When you find yourself trying to check off all the items on holiday list, make sure you're staying within your budget and getting the best possible deal, Apps such as Red Laser and Yowza can help you get the most from your purchases. Red Laser is a barcode scanner that allows you to scan an item and instantly have access to online prices and information. You can also scan movies at the store and beam them to your TiVo, scan a book and check for online reviews, or scan a food item and add it to your grocery list. Yowza Mobile Coupons is a free app that finds deals in your geographic area from as close as within a mile of you and as far away as 15 miles. When you arrive at the store, present the coupon on your device and let them scan the barcode. No clipping and stashing coupons necessary.

Don't let your holiday shopping list overwhelm you! The Santa's list app allows you to create, store and secure your holiday shopping list with pictures right on your iPhone! Also, you can store your own personal wish list to send to your friends and family via email. This handy app will keep you organized so that you don't forget that perfect gift for your friend or family member.

Tip 2: Power Walk While You Power Shop

Burn the calories from that extra piece of pumpkin pie by exercising while shopping! Now with some practical technology, pedometers can be integrated into your holiday rush through your shoe or iPod. The new iPod Nano doubles as a pedometer by using a built in accelerometer to keep track of your steps. You can crate a daily step goal or set it to Always On so it counts all the steps you take, all the time. This means that even an extra trip to the mall can be a fun way to burn a few more calories!

The Nike + iPod combo is another simple gadget that allows your running shoes to communicate to your iPod or iPhone and track your running speed, time and distance. By putting a little transponder in your Nike+-enabled sneakers or in a small pouch on non-Nike shoes, every run can be recorded and easily uploaded to an online running log at the nikeplus.com site. At the Nike Plus site, you can set goals, compete against friends, get virtual coaching for races and push yourself to achieve personal milestones. By monitoring your progress and staying motivated, you can help beat those extra holiday pounds!

Tip #3: Stick to Your Budget to Avoid a Holiday Hangover

While you're standing in line and running from store to store, be sure to keep a bank branch in your pocket. Use a mobile banking service, such as Bank of America's mobile banking app, where you can check your balances and transactions, pay bills, transfer money, locate ATMs and more. This easy to use technology ensures your financial life fits seamlessly into your holiday rush.

And, with enhanced security features, and with no financial information ever being stored on your mobile phone, you can transact with confidence. Utilizing this convenient banking tool gives you immediate access to your finances throughout the day. And with holiday budgets top of mind, it has never been more important to have control of your money whenever, wherever you need it.

Tip #4: De-clutter Your Space to De-clutter Your Holidays

Clutter and mess around your house and in your wallet can be a recipe for unnecessary stress and cause you extra time and hassle. Don't spend another minute rummaging through holiday receipts, or trying to find a place to keep all those holiday cards. First, de-clutter by keeping all your holiday gift receipts organized and put away. The Doc Scanner app enables your iPhone camera to act like a scanner so that important documents, like receipts, can be stored in your phone or on your computer. With Doc Scanner you're also just a couple of clicks from being able to email important papers or receipts while on the go. Now, you won't ever have to search through a mess pile of papers again to find that important receipt.



Keep a record of which friends and family sent youa holiday card this year - without saving the cards! Evernote allows you to easily store and search your text, photos and audio notes. Everything you capture is automatically processed, indexed, and made searchable. If you like, you can add tags or organize notes into different notebooks. So this year, as the holiday cards pile up, take a picture and store them out of sight!


Tip #5: Skip the Line Shop Online


Make the most of your time by shifting your shopping, whether for gifts or groceries, online! Online grocery stores now offer great service, selection and time savings, especially when you're getting ready for your annual holiday party. Not only will online grocery shopping save time, it can also save money by helping you avoid impulse buys, giving you discounts as a "preferred" customer, allowing easy bulk buying and giving free shipping with larger orders.

And these days, holiday shopping discounts can be found in unexpected places - even from your bank. Bank of America, for example gives its online banking customers access to their on shopping portal, Add It Up, where online banking customers can earn up to 20 percent cash back on purchases from more than 400 online retailers. This tool allows you to take advantage of time savings, online discounts and cash back, all while shopping!

And, shoppers can take advantage of the double cash back holiday promotions and Add it up retailers such as Apple online Store, BestBuy.com, and Gap.com, among other stores.

Bank of America Provides Relief to Homeowners With Mortgage Modifications

Bank of America has provided mortgage relief through concluded and trial modifications to more than 600,000 homeowners since January 2008.

"At Bank of America, we remain focused on providing long-term solutions to help distressed customers sustain homeownership," said Jack Schakett, Credit Loss Mitigation Strategies executive of Bank of America Home Loans. "Through the government's Home Affordable Modification Program (HAMP) and our own programs, we are moving aggressively to assist as many homeowners as possible."

The Treasury Department's most recent Making Home Affordable Program Servicer Performance Report, reflecting activity through October, indicated that Bank of America was responsible for about one in five HAMP trial modifications--leading the industry with highest number of trial modifications and offers extended. As of the end of November, Bank of America Home Loans had increased to more than 160,000 customers active in a HAMP trial modification.

"As we focus on assisting our customers to successfully convert to permanent modifications, we are making extensive efforts--through phone, mail and face-to-face contact to help our customers know exactly what documentation is required and the risks of not responding by the government's program deadlines," said Schakett.

Bank of America will continue to work with borrowers who cannot meet the requirements for a Hamp modification using its own modification programs, short term relief or other foreclosure-prevention tools that may address their individual situations. Through its established homeownership retention programs, Bank of America has concluded non-HAMP loan modifications for more than 450,000 customers since January 2008, including about 225,000 modifications so far this year.

Bank of America is also the industry leader in the Home Affordable Refinance Program (HARP), the second key component of the Making Home Affordable initiative. Since becoming the first major lender to originate HARP loans last spring, more than 100,000 Bank of America customers who are current on their mortgaeg payments have benefited from enhanced loan-to-value ratios or streamlined processes of the HARP program.

In total, through HARP and other programs, Bank of America has provided $215 billion to refinance existing mortgages, helping 949,000 customers save money on their mortgages so far this year.

Does Congress Have a Better Idea When it Comes to Overdraft Protection?

We reported previously that the Fed announced new rules that would limit overdraft fees charged by bank and credit unions. But now Congress wants to throw its hat into the ring too.

Both Sen. Christopher Dodd (D-Conn) and Rep. Carolyn Maloney (D-N.Y.) introduced overdraft legislation last month, as well. Here is what Ismat Sahara Mangla found out about Congress' plan.

- The Fed mandates an opt-in program on overdraft protection for ATM and debit card transactions, but it says nothing about checks or recurring electronic payments. Congress could extend the opt-in requirement for all such transactions.

- Both Dodd's and Maloney's bills limit the number of overdraft fees banks can charge per month and per year. The Fed is Mum on this.

- The Fed doesn't address the issue of merchant holds that can trigger overdrafts. When a consumer uses a debit card to book a car rental, pay for gas or hold a hotel room, merchants often put a hold on the funds in the customers checking account--and that hold is typically for a lot more than the amount of the transaction. Such holds can trigger overdrafts because the consumer assumes that the funds in his or her checking account are available for other purchases.

- Any opt-in program should also disclose the annual percentage rate you'll pay for the overdraft protection.

Do you think Congress' plan is more in depth and better than the Fed's?

Bank of America Releases "Credit 101" To Help Consumers Manage Credit

Understanding how credit works is critical for anyone obtaining a credit card, line of credit or any other financial product. Bank of America Global Card Services is working to help current and potential customers understand and manage credit wisely.

The bank recently released "Credit 101", the first of a series of radio segments and articles to provide consumer oriented advice. Each one include expert tips from a member of the Bank of America executive team. "Credit 101," featuring Jennifer Ehresman, Global card Services Customer Experience executive, was released to the media and is now being distributed throughout the United States. It has been replaced in more than 1,000 print, radio, and online media outlets and has reached approximately 22 million consumers to date.

Credit matters when it comes to applying for a job or a loan, purchasing insurance or seeking an apartment to live in. If you don't know your credit score, or haven't maintained a good credit rating, you might be in for a surprise.

"There are so many different reasons for people to pay attention to their credit report," Ehresman said. "Pay bills on time and use credit wisely, and over time you'll lay the foundation for a car loan or mortgage loan approval. Knowing some basic information about your credit will help you stay on top of it and use it to your advantage."

Here are some tips to help manage credit and improve your credit rating:

1. Always pay your bills on time. Late payments on rent and utility bills may not show up, but being late on your credit cards will be reported to the credit agencies and will show up on your credit report. If you are having trouble paying your full bill, pay at least the minimum amount due, which can be found on your monthly statement. Consider setting up automatic reminders sent to you via-email or to your mobile device so that you don't overlook a due date.

2. Don't overspend. If you're maxed out on all your credit cards, maybe its time to rethink your spending habits. When shopping, only charge items to your credit card that you can afford to pay back.

3. Develop a budget. Maker sure that the budget you create is one that you can realistically follow. Be sure to include ways to start paying off the debt you've already accumulated.

4. Know your interest rates. If you carry a balance on your credit cards, make sure you read the details about your interest rate so you can understand what it costs when you don't pay your balance in full. Also read the information about any additional fees that may be charged to your account. To help its customers understand their account pricing, Bank of America recently announced it will introduce a credit card Clarity commitment, a one-page explanation of the customer's credit card rates and fees.

5. Review your credit report. You can legally obtain a free copy of your credit report from each of three credit agencies once a year. Make sure you check your credit because it is an overview of your financial history. In addition to creditors, employers, landlords and insurance companies can review your credit report. These reports can contain errors, so if you find one in review, report it promptly so that your score isn't affected by the error. "Stay in control of your credit to achieve your financial goals," Ehresman says. "Your credit matters, and managing it proactively can help you improve your rating and enjoy the benefits that credit can offer."

Be Careful With Your Debit Card on Black Friday.

We stress using your debit card rather than your credit cards to help keep from getting into debt over the holiday season. This is the time of year retailers get back in the black and consumers get put into the red. But experts say it's best to leave your debit card at home on Black Friday.

Here is what they say about keeping your debit card safe.

Read up in refunds

Unlike transactions made by a cash or credit card, debit card purchases that are returned or disputed might not be refunded immediately. That's because debit card purchases fall under Federal Reserve Board Regulation E, which makes them instantaneous transactions with third parties. "So you won't receive any money back from a mistaken transaction until after the dispute is resolved," says Carrie Coghill Kuntz, spokeswoman for CreditFYI.com, in an interview with WalletPop.

Stay away from surfing

Paying via debit card is the equivalent of wiring a retailer cash. And if while shopping online you accidentally put too many item in your virtual basket, or hit your browser's "back" button and reload the transaction, you might be out of luck when trying to get a refund.

Act Fast

If you learn your debit card has been used fraudulently, report it to your bank (or the card issuer) immediately. Waiting longer than two business days can inflate your liability to as much as $500.

Don't bank on your bank

Unlike a credit card issuer, your bank isn't monitoring your spending habits. Which means if your card is used suspiciously or appears to be stolen, your bank won't shut down your debit card. That means the responsibility to monitor spending and suspicious behavior falls squarely on your shoulders.

Check your credit score

Scan your score and full credit report report before shopping. That will ensure you're starting out the shopping season with a factual report and with the highest score possible. And give you a good starting point to detect any fraudulent activity that may occur during the holiday season.

If you can use your debit card more than your credit card, but be sure to follow these techniques to keep your stress level down down during the holidays.

With Tightened Credit Will We Ever Get Out of The Recession?

Is credit from banks still tight? I have read several articles today, some saying that credit is loosening up and others saying it's still tight.

According to the Federal Reserves latest survey of loan officers, there is a sign that the credit crunch's grip may soon ease up. The loan officers I know are just miserable. Why? Because it is so hard to get a loan approved right now. Credit is still tight. Consumers showing so much as an NSF on there bank statements are having trouble getting loans. So is credit still tight?

The 15% of banks that responded to a survey said they imposed stricter standards on credit then they have over the last three month period. The survey also showed that some were reducing there standards, but very few actually are.

The banks that tightened there requirements did so for the same reasons they did during the last survey period back in July. The most common reasons were:

1. Reduced tolerance for risk.

2. An uncertain economic outlook.

3. Problems specific to industries.

Banks have been tightening there standards for loans over the past two years. Banks have constantly been tightening in these three areas of credit:

1. Higher credit scores.

2. Higher interest rate spreads.

3. More collateral and shorter maturities.

Bank lending has fallen sharply since they have been tightening credit along with a reduced demand for credit.

I am in a catch twenty-two over this as we always preach living a debt free lifestyle, but will we ever get out of the hole without it?

Whenever we've gotten out of a recession we have always had the availability credit to use as a shovel. This time it's different.

In one way we need a cleansing and on the other hand we will not get out of this without good news and to get people spending. If they aren't working and those who are can't get the loans they need, what will we do? Maybe we just need to meet in the middle somewhere.

Have you been turned down for a loan or credit card lately? What was the reason why?

Bank of America Helps Consumers Learn About Credit Counseling

Every day,consumers are bombarded with information on managing debt, often from sources with varying reputations, including us. This can leave financially strapped consumers confused and unsure of how to start gaining control of their own debt and financial state. Bank of America is helping consumers in these positions by providing though leadership and clear solutions to help them better manage their financial lives.

"Debt settlement agencies are flooding the media with misleading information and in turn, causing confusion for financially struggling customers looking for a lifeline," said Colleen Benjamin, Global Card Services Recovery and Risk Operations Executive for Bank of America. Benjamin is leading debt management work across the industry for the National Foundation for Credit Counseling (NFCC) to help combat misconceptions caused by these agencies.

Since March, Benjamin has been chairing a 40-person work group for the NFCC. The committee members consist of major bank issuers, VISA, MasterCard, American Bankers Association, non-profit agencies and consumer protection advocacy groups. The NFCC promotes financially responsible behavior and builds capacity for its members to deliver the highest quality financial education and counseling services.

Benjamin's work group in particular has three main areas of focus:

- Legislative efforts: There are no Federal regulations for debt settlement industry,

- Product and solution work: Investigating how issuers can support non-profit agencies in their work to help consumers with low or no cost products.

- Consumer awareness and communications: Providing education and awareness of options.

"It can be very confusing for a consumer in choosing between debt settlement vs. credit counseling and who to turn to when you're scared, over extended financially and in desperate need of help." We are working to eliminate and broad reaching, deceptive marketing, practices of many in debt settlement industry and to educate customers about their options," said Benjamin.

Debt settlement firms take their fees up front, typically 15% to 20% of consumer's debt. And even in the best case scenario, where debt is reduced or eliminated, their programs can significantly and negatively impact a consumer's credit score. In the worst case scenario, the firm takes the fee and does nothing to help the consumer. Sometimes, a consumer will eventually find a non-profit credit counseling agency, but is often to far behind point to be helped.

"It is important for customers who are struggling financially to understand all available options and the potential consequences of working with a for non-profit settlement company," said Benjamin. "Customers who start working with debt settlement companies are five times more likely to charge-off one year later than customers working with a non-profit credit counseling agency. The win for everyone with credit counseling is evident."

The Federal Trade Commission (FTC) and Attorneys General from several states are conducting ongoing investigations into the deceptive practices of this industry. The HFCC work group has met with legislators to bring to their attention predatory marketing practices and other concerns. The work group provided the FTC with the top 10 debt settlement companies, misleading information from their websites and the number of Better Business Bureau complaints. Also, provided were copies of several debt settlement contracts--including on contract that charged a consumer $8,000 in fees.

Next steps for the work group include using public service announcements to further educate consumers on the differences between debt settlement and non-profit credit counseling. They will also conduct focus groups with consumers to better understand why they chose a for-profit debt settlement company.

Have you contacted a credit counseling agency? Were they able to help? Did they charge excessive fees and not really do anything?

Related Articles:
I Have A Repayment Plan Set Up With The National Foundation for Credit Counseling And I still Can't Afford The Payments. What Do I Do?

Credit Card vs. Debit Cards When Getting Out of Debt

More and more people are beginning to use their debit cards more than their credit cards. With credit card companies socking it to consumers at the last minute before the new CARD Act goes into action in February 2010. I read a recent article today on CNNMoney.com about the downside of debit cards. This is what they had to say:

1. Security

If your credit card is stolen you are not responsible for unauthorized charges over $50. But when your debit card is stolen you have to report any charges you didn't make within in two days to get the same protection. Curtis Arnold of cardratings.com says card issuers have different policies so make sure you read the fine print.

2. Your Credit Score

If you trying to build your credit score, your debit card won't help. Debit cards have absolutely no impact on your score. Since debit cards pull directly from your checking account there is no credit.

3. Debit don'ts

If you are going to purchase a big ticket item use your credit card rather than your debit card. Credit cards offer better protection.

But let's look at the pro's when getting out of debt.

1. Convenience

Having a debit card is a lot easier than carrying a wad of cash or running to the ATM.

2. No qualifications

Since debit cards are not credit scrore driven you don't have to have a great score to qualify for one.

3. Keeps you from spending money you don't have.

Using your debit card keeps from adding to you credit card balances. When you use your credit card you tend to forget what you spend until you get your statement. With your debit card you can only spend what's in your checking account.

So if you are trying to pay off your credit cards and haven't switched to your debit card it's time to start.

Let's hear from you. Do you use your credit card more and your credit card less?

How Do I Develop a Spend-Less Plan to be Debt Free?

After you start looking at your expenses for the last three months and have begun to make the cut backs, do it again. Here are some additional cut back tips.

1. Identify what are necessary expenses and what are luxury expenses. What are your needs and what are your wants. You do need groceries, but does everyone in the family need a cell phone or do you need the expensive cable package?

2. After reviewing your bank and credit card statements, do you see any patterns in your spending? Review you miscellanous spending. There is always something you can cut back on.

3. Prioritize your budget. List your expenses from the most to least important. Then assess what you can cut back on.

How Do I Determine What I Can Cut Back on so I Can Be Debt Free?

Begin tracking your expenses for the last three months.

1. Go back and look at your bank statements.

2.If you primarily use your debit card, rather than cash, all your expenses (food, gas, entertainment, ext)should be fairly easy to figure out.

3.Go through your credit card statements too and check the charges you made. Don't forget the interest.

4. Review how much money you made.

So how much money did you make? Do you make enough to cover all of your expenses? Did you spend more than you made? If you spent less than you made, what did you do with the extra money? Doing this should help you determine where you can start cutting back if you are spending more than you make.

Now, what do you want to do? Do you want to start working towards a debt free life style? Things don't happen over night, but you need to start setting specific goals. When determining your goals be sure to have a completion date set for each one of them. So, if you are going to reduce your spending by $10 a day and start putting that money towards your credit cards so you can pay them off, what steps are you going to take to make that happen and how soon will you start. If you are living above your means you may have to take painful step in order to make things happen. You must start to figure out how to live within your means before you can get your finances under control and start living a debt free life style.

Are Banks Full of Crap About Not Raising Credit Card Interest Rates?

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After reading this post you are probably thinking what the heck is that all about or we are full of crap. But really the banks are full of crap.

Last week Bank of America announced that it will not increase interest rates on consumer credit card accounts between now and the effective date of the CARD Act, unless a customer's account falls past due. Also, variable rate credit card accounts may experience rate changes based on changes in the prime rate. But is that exactly true?

Starting in February 2010 the Card Act will put a stop to:

- Charging consumers to pay by phone

- Sudden surges in interest rates

The bill also makes changes to:

- Applying payments made over the minimum due to balances with the highest interest rates first.

- Information in tiny print must be made clearer.

- Let consumers know how long it would take to payoff a balance if they only pay the minimum payment.

Credit card companies have been raising fees and interest rates. From November 2008 to February 2009, rates increased from an average of 12.02% to 13.08%. Because of this people have not been able to make their payments on their credit cards and are walking away from the debt.

As we expected, with the new law going into effect, banks would start raising interest rates even to account holders who pay their accounts on time.

Our post was based on a copy of a letter our $190,323.79 in debt couple, Lois and Clark received from Wells Fargo. They also have received a similar letter from Bank of America, but they have been late on their Bank of America cards. So it is understandable that the rates would be going up on those cards. But the cards that they pay on time are going up as well. Even though the letter they received says the changes are not a reflection of how you have managed your account or your credit score.

So here it is folks. Watch for more letters like this coming your way as banks and credit card companies stick to you as much as they can before the CARD Act goes into effect. Until February 2010, all you can do is accept it and pay the higher rate or close your account.