By Mark Foster

The good news is that gasoline prices are not expected to skyrocket this summer. The bad news is that gasoline prices are still around $3.50 a gallon which is hardly inexpensive. In fact, the government recently forecasted an average of $3.79 a gallon for the summer driving season. Nearly $4 a gallon is actually being touted as good news. When gas prices drop, they usually drop pennies at a time and yet it seems that consumers are expected to rejoice at the meager savings. 

The reality of the high cost of gasoline is that it can take a heavy toll on a person’s budget. We’ve seen many families who are financially stressed because of having to put gas in their truck, van or SUV, or must commute a fair distance to work or school. And people on fixed or limited incomes, such as students or retirees, are often hard hit as well. A few tips from Credit Counseling of Arkansas (CCOA) for those looking to keep their gasoline costs under control: 

• Don’t “floor it.” Fast starts and Indy 500 style driving drastically cut down fuel efficiency.
• Make sure your air and gas filters aren’t dirty.
• Check to make sure the air pressure in your tires is adequate. Underinflated tires not only result in lower gas mileage, but wear out your tires sooner as well.
• Extra weight makes your car work harder. If your trunk is doubling as a storage closet, remove some items.
• Explore your options. If possible, use public transportation. Ride a bike short distances. Or find carpool friends to split the costs. Even just carpooling a few days a month can be worth it.
• If you don’t already have a lock on your gas tank, consider buying a locking gas cap, which is fairly inexpensive. Gas siphoning is becoming increasingly more common. 

Stretching your gas dollar can be helpful, but if it’s not enough, you may need to take a step back and look at your overall household budget and see what else you can adjust.

Mark Foster is Director of Education with Credit Counseling of Arkansas (CCOA). CCOA is a member of the National Foundation for Credit Counseling. Visit CCOA online at www.CCOAcares.com

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Gail Cunningham

Gail Cunningham is Vice President of Membership & Public Relations with the NFCC.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Stacy Johnson

Last year, a deal site called Eversave ran a Mother’s Day survey. Of the 187 women who answered, just more than 42% craved “a clean house” as much as a day at the spa.

Note: They did not say they craved to clean house, but to have a clean house. Big difference there.

And I bet if the survey were repeated this year, the result would be the same. So if you can afford it, why not grant both wishes?

Mother’s Day is approaching – it’s Sunday, May 13 – so it’s time to start watching for deals on massages and think of such things. You can bet that sites like Eversave and Groupon will be running specials on things moms like.

Incidentally, plenty of moms love flowers – but don’t limit yourself to cut blooms. Why not have a small flowering plant delivered, or select a rose bush or flowering shrub you know she’s been craving? You’ll earn good-child points for helping site and dig if you live nearby, or for arranging someone else to site and dig if you’re six states away. 

More Ways To Save

If you’re new to savings websites you may get a sign-up bonus that will further reduce the cost of your purchase. For extra credit: You might be able to purchase your voucher through a cash-back shopping site such as Extrabux or Mr. Rebates, thereby carving another 5% or so off the purchase price.

(And if you must do flowers? Some of the highest rates at cash-back sites are for floral services.)

Don’t see a deal you like? Check out the secondary market for discounted social commerce deals. DealsGoRound and Coup Recoup might be able to give you another shot at that lovely day spa or interesting new cupcake bakery.

The Internet is loaded with deal sites that deliver not just startling price points, but also free shipping codes. Two I can recommend from personal experience are Savings.com and My Bargain Buddy.

You might have your own favorite shopping sites. Go with what works, but don’t wait until the last minute if you want the spa cards or sparklies delivered on time.

Stacy Johnson is a personal finance author, speaker, and television news personality. His Money Talks News series has aired for more than 20 years on dozens of network affiliates nationwide.

Views expressed are the personal views of the author and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Jason Alderman

On Mother’s Day, children of all ages thank their moms for the many sacrifices made during their childhoods — and well beyond, considering how many adult children still hit up their moms for a loan or free babysitting.

Unfortunately, for many mothers those sacrifices extend well beyond sleepless nights and attending boring recitals. Women frequently leave the workforce during prime earning years to raise children or care for elderly relatives; consequently, they often fall behind when it comes to pay increases and promotions.

As a result, women’s retirement account balances and Social Security benefits are usually much smaller than men’s. According to the Social Security Administration, in 2010:

• The annual median income for full-time working women was $36,000, compared to $48,000 for men. 
• Average annual Social Security income for women over 65 was $11,794, vs. $15,231 for men. 
• For unmarried women over 65 (including widows), Social Security benefits comprise 49% of total income on average, compared to 37% for unmarried men and 32% for couples. In fact, Social Security accounts for more than 90% of total income for nearly half of all elderly unmarried women.

Not to mention, women live about five years longer than men, on average, so their already smaller savings and income must stretch even further.

I’m not trying to bring everyone down, but rather to suggest that perhaps your best Mother’s Day gift this year might be to initiate a frank discussion with your mom about her personal finances and how she can better prepare for the future. Here are a few topics you might discuss:

Put retirement savings first. You can always borrow money to pay for college, a house or a car, but you can’t get a loan to pay for retirement. If she’s below retirement age, make sure your mom is enrolled in a 401(k) plan or an IRA and saving as much as possible. The maximum annual 401(k) contribution is $17,000, plus an additional $5,500 for people over age 50; the maximum for IRAs is $5,000, plus $1,000 if over 50.

Social Security benefits. Even if your mother didn’t pay into Social Security through work, she’ll be eligible to collect benefits as long as her spouse did. And, if she qualifies under her own work record as well as your dad’s, she’ll generally receive the higher benefit amount of the two.

The longer your mom waits to draw Social Security, the larger her monthly benefit will grow. Social Security “full retirement age” is 65 for those born before 1938 and increases gradually to 67 for those born after 1959. (Use this calculator to determine her full retirement age.)

If your mom meets eligibility requirements, she can begin drawing reduced benefits beginning the first full month after reaching age 62; however, doing so will cut her benefit amount by up to 30 percent. The percentage reduction gradually lessens as you approach full retirement age.

However, by postponing benefits until after full retirement age, her benefit will increase up to 8% per year, up to age 70. Those with longer life expectancies often wait as long as possible to ensure a larger lifetime benefit. In fact, because very few investments, including 401(k) plans, yield a guaranteed 8% rate of return, many retirees will tap their 401(k) first and postpone collecting Social Security as long as possible.

Also keep in mind:

• Widows can tap Social Security benefits as early as age 60 (50, if disabled). And spousal benefits are available if she’s divorced, provided the marriage lasted at least 10 years, she remains unmarried and is at least 62. 
• Although many states don’t tax Social Security benefits, the federal government counts them as taxable income. So, depending on your mom’s overall retirement income, she could owe federal tax on a portion of her benefit. IRS Publication 915 has full details. 
• If your mom begins drawing benefits while still working, they could be significantly reduced depending on her income. Read How Work Affects Your Benefits for details. (Note: The reductions aren’t truly lost since benefits will be recalculated upward at full retirement age.)

Social Security’s Website for Women provides information on retirement, disability and other issues — in English and Spanish. You can order or download their free, informative publication, What Every Woman Should Know, or call toll-free at 800-772-1213 to ask questions. Another good resource is What Women Need to Know About Retirement, a free, downloadable book jointly developed by Heinz Family Philanthropies, the Women’s Institute for a Secure Retirement (WISER) and my employer, Visa Inc.

Pensions. Find out if your mom is eligible for pension benefits from former employers. If she’s ever widowed, she could also be eligible for spousal death benefits from your father’s pension. To track down old pensions, first contact the employer; if that doesn’t work, contact the Public Benefit Guaranty Corporation, PensionHelp America, or the Employee Benefits Security Administration.

Crunch the numbers. You can help your mom estimate her retirement needs by using online interactive calculators, including:

• Social Security’s Retirement Estimator, which automatically enters her earnings information from its records to estimate her projected Social Security benefits under different scenarios, such as age at retirement, future earnings projections, etc. They also have a more detailed calculator you can download to make more precise estimates. 
• AARP’s Retirement Nest Egg Calculator helps calculate how much she’ll need to create a secure retirement.

Discussing finances isn’t as much fun as a picnic in the park, but believe me your mom will appreciate your looking out for her financial future.

This article is intended to provide general information and should not be considered tax or financial advice. It’s always a good idea to consult a tax or financial advisor for specific information on how tax laws apply to you and about your individual financial situation.

Follow Jason Alderman on Twitter: http://twitter.com/PracticalMoney

Jason Alderman is Senior Director, Global Financial Education, with Visa, Inc.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Drew Kessler 

If you’re looking to increase your current income consider some of the following ideas. Use it to help you to think of ways that will help you the most, but remember that some of the things you think will help increase your income might have an additional cost attached to them.  For example, if you choose to take a second job, will you also face higher child care costs?  It’s best to examine choices from all angles to be sure they will work for you. 

      ˆ  Get a second job in the evenings or on weekends

      ˆ  Look for a better-paying job

      ˆ  Market any skills you have as a consultant, or give lessons in an area you know (in addition to your full-time job)

      ˆ  See if another family member can get a part-time job

      ˆ  For a short time, contribute less to your 401(k) or other retirement plan

      ˆ  Get a roommate if you have extra space

      ˆ  Rent out a room

      ˆ  Sell an asset

      ˆ  Sell an unneeded vehicle, collectable, or some other possession

      ˆ  Obtain entitlements for which you are qualified (Medicaid, SSI, WIC, utility assistance, etc.)

      ˆ  Use assistance for medical bills (apply at hospitals and offices for assistance)

      ˆ  Seek legal ways to obtain court-ordered child support

      ˆ  Change your withholding allowance*

*Here are some ideas about changing the amount of taxes being withheld from your pay to “increase” your income.  First, reducing your withholding amount (by increasing your exemptions on your W-4 form) does not increase your income; it reduces the amount of taxes you pay each month.  This has the effect of increasing your monthly take-home amount.  If you reduce your withholding too much—that is, have too few taxes taken out each month—you may be faced with a major tax bill next April. On the other hand, many people use their withholding amount as forced savings and have more taxes withheld than is necessary.  We all like to receive a nice, big refund check inApril.  However, you should understand that your refund check is essentially an interest-free loan you are making to the government.  Rather than loan money unnecessarily to the government, why not adjust your withholding amount so that you receive a modest refund—say a few hundred dollars—and use the extra monthly take-home amount created by the lower tax withholdings to increase the monthly amount you are saving or investing.  You should meet with a financial advisor or tax specialist to determine the proper amount of taxes to withhold based on your situation.

Drew Kessler is Vice President of Marketing & Communications with the National Foundation for Credit Counseling.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Jason Alderman

Now that tax day has passed chances are you’re either waiting patiently for your 2011 tax refund to arrive, it’s already been spent, or you just wrote the U.S. Treasury a check and are in budget-cutting mode.

It’s difficult to calculate exactly how much you will owe in taxes unless your income and family situation are identical from year to year. But going more than a few hundred dollars above or below your final tax bill is not a good idea: A big refund basically means you’ve been giving the government an interest-free loan all year, while significantly underpaying means you may have to pay costly penalties and interest on the amount.

Your goal should be to receive little or no tax refund next year. Better to use that money throughout the year to pay down credit card balances or other debt, build emergency savings, beef up your retirement plan contributions, or invest it where you can earn interest or dividends.

Unless you’re self-employed, retired, or had unexpected sources of income, the driving factor for how much tax you owe or have refunded is probably your W-4 form. That’s one of the many forms you filled out your first day on the job and probably never thought about again.

To refresh your memory: IRS Form W-4 determines how much federal income tax is withheld from your paychecks. The more allowances you claim on the W-4, the less income tax is withheld each pay period. When you file your yearly tax return, the government basically settles accounts with you: If they took out too much during the year, you get a refund; not enough and you pay additional taxes with your final return.

You’re allowed to file a new W-4 with your employer at any time. It’s a good idea to review your W-4 each year in case your financial or family situation has changed. For example, if you or your spouse:

• Experience a significant increase or decrease in income.
• Add a second job, start or stop working (including retirement).
• Have a child (including adoptions).
• Reduce or increase how many dependents you’re claiming (children or adults).
• Get married or divorced.
• Buy or sell a house.
• File for bankruptcy.
• Increase or decrease income adjustments for IRA/401(k) deductions, student loan interest payments, or alimony.
• Significantly change your itemized deductions or tax credits, including: charitable contributions, expenses for medical care, job search, dependent care and interest (including mortgage), child tax credit, or earned income credit.

If you have a sizeable change in taxable income not subject to withholding, you should probably either increase the amount withheld from your paychecks to account for the difference, or make quarterly estimated tax payments. Otherwise, the IRS may charge you an underpayment penalty come next April.

Common sources of income not subject to withholding include: self-employment income, interest earnings, dividends, capital gains, alimony, rent, IRA or 401(k) distributions, taxable inheritances, prizes, and awards. Estimated tax rules are fairly complicated, so refer to IRS Publication 505 for details on how to determine whether you need to pay it or not.

Filling out a new W-4. Ask your HR department for a new copy of the form, or download this version from the IRS that lets you enter your information electronically and print out a copy. The form contains worksheets for calculating your personal withholding allowances and estimating deductions, credits, and other income adjustments if you plan to itemize expenses this year.

Generally, you’ll claim one allowance for yourself and one for each of your dependents. However, you can adjust the number to avoid having too much or too little tax withheld from your pay. For example, if you have numerous deductions that will lower your taxable income (several children, a sizeable mortgage, high medical expenses) you can claim additional allowances. Conversely, if you expect sizeable untaxed income, you can reduce your allowances.

If you need additional help with the calculations, IRS Publication 919 (“How Do I Adjust My Tax Withholding?”) provides detailed instructions. Or use the online IRS Withholding Calculator or those found in most tax preparation software packages.

And finally, if you have a working spouse or more than one job, the IRS recommends that you calculate the total number of allowances you’re entitled to claim on all jobs using worksheets from only one Form W-4. Your withholding usually will be most accurate when you claim all allowances on the Form W-4 for the highest-paying job and claim zero allowances on the others.

This article is intended to provide general information and should not be considered legal, tax, or financial advice. It’s always a good idea to consult a legal, tax, or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.

Jason Alderman is Senior Director, Global Financial Education, with Visa, Inc.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Kim Cole

Dear Kim,

Back in 2010 my house went into foreclosure due to financial difficulty stemming from my job loss. We called Novadebt and worked with your housing department and received a modification on the mortgage after I was able to find work a few months later. Everything has been going fine, but I received a strange letter in the mail and was wondering if you could tell me what it is. The letter states that I am eligible for an “Independent Foreclosure Review.” It sounds very official and is from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency. It asks me to respond. Should I? There are so many scams out there, I want to be careful.

Thank you,

Juliana

Dear Juliana,

I am thrilled to hear that everything is going well with your mortgage and home. I am also glad to hear that you are skeptical about the foreclosure scams that are out there but this is not a scam. The Independent Foreclosure Review is a review, conducted by an independent agency, giving homeowners the opportunity to request a review of how the lender conducted the foreclosure process of their primary residence. The eligibility requirements are, the mortgage must have been active in the foreclosure process between January 1, 2009, and December 31, 2010, the property securing the loan must have been the primary residence, and the mortgage must have been serviced by one of the mortgage companies listed below: 

• America’s Servicing Company
• Aurora Loan Services
• Bank of America
• Beneficial
• Chase
• Citibank
• CitiFinancial
• CitiMortgage
• Countrywide
• PNC
• Sovereign Bank
• SunTrust Mortgage
• U.S. Bank
• Wachovia
• Washington Mutual
• Wells Fargo
• EMC
• Everbank/Everhome
• Freedom Financial
• GMAC Mortgage
• HFC
• HSBC
• IndyMac Mortgage Services
• Metlife Bank
• National City 

In my opinion, you should move forward with the review process. It will not impact your current modification with your mortgage company/servicer. It is a free service to you, and it would be in your best interest to have a third party review your previous pending foreclosure to make sure that there were no errors in the process. You can respond directly to the letter or go to www.independentforeclosurereview.com and file the Request for Review Form. You will receive a letter within approximately one week advising you that your request was received. Please allow several months for the investigation. Under no circumstances should you pay anyone who offers this review for a fee. The Request for Review Form must be postmarked no later than April 30th 2012.

Good Luck!

Kim

Kimberly Cole is Education Outreach Coordinator with Novadebt. Novadebt is a member of the National Foundation for Credit Counseling.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients

By Lauralynn Schueckler

Monday was National Honesty Day, and not many people were aware of that. One of the top Twitter Trends that day was #NationalHonestyDay. Here in the United States, National Honesty Day was invented to celebrate the truthfulness of a pair of past presidents. You may have heard of them, George Washington and Abraham Lincoln. Good old Honest Abe could teach us a thing or two about being honest and truthful.

One of the many numerous things people lie about is their personal financial situation. Nobody wants to go telling everyone they know that they are in debt. Even family members are more often than not left out in the dark. Let’s change all of that, starting today!

Debt can be hard to handle and even harder to talk about. You can’t keep burying your head in the sand, and just hope it goes away. Pick yourself up and face it head on. Reach out to friends or family members and ask them for their help or advice. You never know, they could have been in your shoes before and tell you about what worked for them.

Discussing your debt with someone else can be really helpful and therapeutic. You can shed off your anxiety and worries to some extent by being open and honest about your situation. Remember, that communication is the key in any relationship. Remain open to your spouse or significant other about any financial matters.

When you know that debt is a problem, it’s a good idea to discuss your debt worries and fears with someone else and remember to be honest. The most significant and important thing you can do is to get professional debt relief advice from a reputable debt counseling agency. Certified counselors will listen to your story thoroughly, and help you deal with your situation while using their professional guidance. They can help you create a realistic budget and a new spending plan. The counselors can also offer options such as a debt management program or bankruptcy if need be.

So when you are getting ready to tell a lie today (even a little white lie), think about National Honesty Day and don’t let that lie slip out. If we could all be honest every day of the year, there would probably be a lot less drama and stress in our lives. Take that weight off of your shoulders and tell someone about your situation.

Advantage CCS is always here to listen and to help you. We’ve helped thousands of people, from all walks of life, get out of debt and become free from that burden. The Agency enlightens and assists consumers each year through free, confidential credit counseling, debt management programs and various community education workshops. Reach out to us today and we will listen!

Lauralynn Schueckler is the Online Marketing Specialist at Advantage Credit Counseling Service. She is the author for Advantage CCS’s Blog called Dollars & Sense. Advantage Credit Counseling Service is a member of the National Foundation for Credit Counseling.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.

By Gail Cunningham

According to the April poll hosted on the NFCC website, when asked to describe the state of their personal financial situation, 80% of more than 1,400 respondents admitted their finances were in need of a major overhaul. 

This statistic parallels the findings of the recent NFCC Financial Literacy Survey in which 80% of adults indicated they could benefit from additional advice and answers to everyday financial questions from a professional. It is encouraging that people recognize how perilous their financial situation has become.  Now they need to take action to resolve the problem and keep it from spiraling out of control.

To help consumers determine if their finances could use an overhaul, the NFCC developed the following ten-question True/False quiz: 

1. My credit card balances increase each month.

2. There are arguments in my home about money.

3. I have thought about filing for bankruptcy.

4. Most of my credit cards are near the limit, so I’ve begun applying for new lines of credit.

5. I do not know the total amount that I owe.

6. I skip paying my bills some months, or pay late.

7. My debt interferes with my job and/or home life.

8. Collectors have begun contacting me.

9. If I lost my job, it would mean an immediate financial crisis in my life.

10. I have no emergency savings account.

Consumers answering True to any of the above questions would benefit from credit counseling with a trained and certified counselor. To locate the NFCC Member Agency counselor nearest you, go online to www.DebtAdvice.org or call (800) 388-2227.  For assistance in Spanish, dial (800) 682-9832.

The actual survey question and responses were as follows:

My personal finances

1. Are putting along just fine = 4%
2. Could use a tune-up = 13%
3. Are in need of a major overhaul = 80%
4. Have never been better = 3%

Note: The NFCC’s April Financial Literacy Opinion Index was conducted via the homepage of the NFCC website (www.DebtAdvice.org) from April 1 – 01, 2012 and was answered by 1,454 individuals.

Gail Cunningham is Vice President of Membership & Public Relations with the NFCC.

Views expressed are the personal views of the author, and do not represent the views of the National Foundation for Credit Counseling, its employees, its members, or its clients.