WCC™ Get’s Write Up in Tech Blog!

Posted on March 6, 2013 by admin

WebChurchConnect.com™, a tech company that helps faith based non-profits and churches manage their members has-recently experienced huge growth-they just got a write up in a super cool blog ChurchM.ag!

Check it out here.

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College Student Debt [INFOGRAPHIC]

Posted on August 16, 2012 by JeanneMcT

Did you know that 84 percent of college students say they need more education on financial management?

There are over 18 million students that are enrolled in nearly 5,000 colleges in the United States, many of which are charging over $20,000 a year for tuition, not including living expenses. It is over 400 percent more expensive to go to college in the United States than it was 30 years ago .

Learn more by visiting us at:

http://www.christiancreditcounselors.org/

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Things to Know Before You Embark on Entrepreneurship

Posted on August 14, 2012 by tlopez

The pros and cons of becoming an entrepreneur

Thinking of starting your own business? Maybe you have a great idea that you think will be a total success, but before you quit your day job you must be aware of the risks and advantages of becoming an entrepreneur. For example, working for a company ensures a peace of mind that does not readily come with owning your own business. The decision-making, salary and flexibility also have their positives and negatives.

Decisions

As the boss you would make every decision, therefore any result, good or bad, falls back on you. This can be very stressful and it can become very difficult to handle. But on the other hand, you have the freedom to make the choices you see fit instead of being told what to do. This may give you the independence you have been waiting for; and chances are, if you are looking to start your own business, you probably prefer being the one calling the shots.

Salary

Your salary will vary depending on the kind of business you choose to start. You may decide to start a business where you are the only employee–a sole proprietorship. With this form of a business, you would reap all the benefits of your hard work. However, you may choose to open a business and hire some employees. This type of business can become very stressful because you no longer have the security of knowing yours is the only paycheck you have to pay. Now you have to worry about where the money will come to pay your employees, and depending on where your business is located, you may be required to provide health insurance for your employees. This will be especially stressful in the beginning stages when most of your money, if not all, is going to pay for expenses.

Flexibility

Many people that start their own business do it with the idea that they will be able to make their own schedule. While this is true, you must be aware that in the beginning stages of your business the hours will be very long and you must be prepared for emergencies that can occur at any time. It can be a very unpredictable schedule and you may start to miss the monotony of a 9 to 5 office job.

Other risks include losing access to company health insurance; as an entrepreneur you would have to pay out-of-pocket or pray you are never sick or hurt. Also, you must deal with your clients/customers first-hand; you can no longer direct their call to your supervisor. You may think that being your own boss will outweigh any risk (and it might), but don’t forget you will have to answer to the bank that gave you your business loan, as well as the IRS and other creditors. If after weighing the pros and cons you decide you can manage these risks and believe that your product or service is worth it, we wish you the best!

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Investing 101

Posted on August 1, 2012 by tlopez

Maybe you have asked yourself, “How do I start investing?”  It’s very simple, but before you start, make sure you have your house, budget, and savings in order.  There are many things you can invest in: stocks, bonds, mutual funds and real estate, to name a few.

Bonds

One type of investment can be in the form of a bond.  Many refer to it as a “Fancy IOU.”  This is when you lend out your money and in return you gain interest on it.  However, the return may be very small.  Bonds have predetermined intervals of when they pay interest which usually occurs semi-annually.  The maturity date on a bond refers to the end date of the agreement between the lender and the buyer.  Also, it is important that you know that interest rates and bond prices have an inverse relationship.  As interest rates fall, the price of the bond increases and vice versa.

Stocks

Stocks are another type of investment and the way people make a profit is when they increase in value.   When you own stocks in a company like Coca Cola, it means you own part of the company.  The concern with stocks is that the value fluctuates on a daily basis.  Stocks can have a high return, but the loss can also be very high.  To safely invest in stocks, invest in a company that will be around for a long time, for example, Pepsi Co, Apple, etc.

Mutual Bonds

Mutual bonds provide more of a safety net than regular bonds and stocks because you are not putting all your eggs in one basket.  Putting together money from many investors and purchasing stocks, bonds, etc., form a mutual bond and another person manages them.  Having the money professionally managed is a positive for many because it adds a level of security.

With investing there are no guarantees but with the proper research you will be investing your money in a safer outlet with a higher chance of gaining profit. Regardless of what you choose to invest in, check the track record and know what you are getting into.  If you are still doubtful about investing, think of the money you set aside for savings that is not accumulating any interest, meaning you aren’t making any extra money. In fact, you are losing money at the current inflation rate if you do not invest at a higher interest rate, so use this as motivation to start growing your money!

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It’s Time to Save for Retirement

Posted on July 17, 2012 by tlopez

Start preparing for retirement nowEveryone is going to grow old, it’s inevitable, but not many think of this when they are young and on top of the world.  If everyone stopped to think about getting old, they would realize that their income will not always be what it was when they were thirty years old.  This would cause them to question how they plan to live when their only income is social security, if they’re lucky.  If you haven’t started saving for retirement, you still have time.  Ideally, a person should begin their IRA when they are young—the sooner the better.

IRA stands for Individual Retirement Account.  This is the best alternative to begin saving for retirement because it defers taxes on your savings until you retire.  This occurs because once you retire your savings are considered your income.  However, you will not be taxed on the lump sum you saved up, only what you withdraw during that year.  There are limits to how much you can save per year, for example, if you are under the age of fifty you cannot save more than $5,000.  This increases the older you get.  Two basic requirements for beginning to save for retirement with an IRA are to have taxable income and be under the age of 70.5.   Regardless of what IRA you sign up for (Roth, 401K, Traditional, SEP, etc.), check the rules and requirements for that specific plan.

An IRA can also be thought of as a forced savings account, because once you start saving you cannot touch that money.  However, there are some exceptions.  Traditionally, you will be penalized for early withdrawal with a 10 percent fee and you will be taxed for it as well.  If you are over the age of 59.5 you can take money out without facing any penalty.  But if you are under 59.5 years old, you can remove money without punishment if you are using it for: college expenses, medical bills, sudden disability and first-time home purchase.  There are limits to how much can be taken out early.  All of this helps ensure you retire with money and can live comfortably without having to rely on social security.

The difference of money saved based on age

In order for an IRA to be successful you must start as soon as possible because it needs time to grow.  The compound interest really begins to grow towards the end.  Another benefit of IRA’s is that you can rollover different IRAs.  If you have an IRA with your current employer and switch jobs, you can take your IRA with you to the new company and add it to the plan they have or move it to a company like Fidelity, Prudential, Vanguard, etc.

IRA’s are simple—you can have the money removed from your paycheck, it is automatic and stress free. Unlike having to manually split your paycheck and budget for it, IRA’s take the work out of saving for retirement.

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Mortgage Loan Types- Home Buying

Posted on July 3, 2012 by tlopez

Buying your first home? You may be thinking the hardest decision you have to make is picking a house.  However, the hardest decision you will be making in this process is what mortgage loan to sign for.  The main types of loans are: fixed rate, adjustable rate, interest only and reverse.

For first time home buyers, Federal Housing Administration (FHA) loans may be the best option.  This program offers competitive interest rates, allows smaller down payments and has easier qualifications.  The typical down payment required with this program is 3.5 percent of the purchase price of the home.  FHA mortgage loans also require insurance, but they do offer a refund on it.

A fixed rate mortgage is also referred to as PITI, Principal Interest Tax Insurance.  With this mortgage everything is included: principal, tax, interest and insurance.  For example, if you have a fixed mortgage, you don’t have to worry about forking over extra cash during tax season because you already paid this tax along with your mortgage. Usually a fixed mortgage is for 30 years, but you can also get a 15 year mortgage, depending on your finances.  If you do qualify for a 15-year mortgage you can expect a lower interest rate, but higher monthly payments.

An adjustable mortgage has lower payments at the beginning of the loan.  You can get this mortgage for 15 or 30 years.  During this time, payments can be adjusted upward; as the market changes so do your payments.  This type of loan comes with more risk because your payments change regardless of whether your income increases.

An interest only loan usually takes 5 or 10 years to pay off, during this time your entire payment is going to pay off the interest.  It’s a waste because although you are making monthly payments, you are not paying off your home.  The only positive aspect about this loan is that it allows customers who expect to increase their income in the future to take out a bigger loan than they can currently afford.  This type of loan comes with a high risk.

Reverse mortgage is especially made for those over the age of 62 and it was created through the government program HUD.  These citizens get a portion of their equity and receive a payment every month.  To become a part of this program there is no income or credit requirement.  However, the cost to enroll in this program can be more than $8,000.  Also, once the borrower dies, the bank settles the debt with the heirs.

Achieving the American Dream without getting further into debt is possible.  Regardless of what mortgage you sign for make sure you know the details.  The key to avoiding traps is knowledge.  Be realistic and buy a house within your means.

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4 Tips for Regret-Free Car Buying

Posted on June 27, 2012 by tlopez

Tip #4: Buy a car that makes sense1. Don’t trade in your car. It is a known fact that the dealership is only interested in making money off of you.  So when you decide to succumb to the convenience of trading in your car, know that you will get a lot less than if you had sold it.

2. They will try to up-sell you. The dealer will offer many deluxe options for your new (or leased) car, don’t fall for it! Especially if it is a leased car–you will be customizing their car that must be returned at the end of the contract, and with no refund for the customizations. If you want something added to the car, shop around for the best deal.

3. Get the proper insurance. Worst case scenario: you get in a car accident directly after driving off the dealership lot.   You paid $35,000 for the car but as soon as you drove away its worth depreciated to $20,000.  The insurance company will only pay you what it’s worth, but you still owe the total of $35,000.  For scenarios like these, there is Guaranteed Auto Protection or GAP insurance.  This means the difference will be covered and you won’t be stuck with a $15,000 bill and no car.

4. Buy a car that makes sense. Many people shopping for a car look for something they like now, but to get the most out of a car you must see yourself being able to drive it for the next 10 years.  Think of the repairs it will need and whether it will be worth buying the extended warranty. Whatever car you decide on, make sure it will fit your needs for years to come.

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Credit Card Complaint Database Opens for Public Use Online

Posted on June 20, 2012 by tlopez

With this new information readily available, consumers can view which companies to steer clear of. The Credit CARD Act was signed into law in 2009 under President Barack Obama. The act set up several provisions aimed at limiting how credit card companies can charge consumers. In July 2011, the Consumer Financial Protection Bureau (CFPB) opened as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The CARD Act helped curb the practices that made banks wealthy and consumers were going to be satisfied. But when it was put into practice, there were still complaints. Especially from stay-at-home moms and dads; under the current provisions, they cannot obtain a credit card because creditors only take individual income into consideration, not household income. Complaints such as these needed a venue to be expressed and Tuesday, the CFPB unveiled its online credit card complaint database for all consumers.

“By making our data publicly available, initially in the area of credit cards, we hope to improve the transparency and efficiency of this essential consumer market,” Richard Cordray, director of the CFPB, said in a statement.

The function of the bureau is to acquire all consumer complaints and create new regulations from the information gathered. Complaints received are put in categories and from there, companies can respond to a consumer in one of four ways. Consumers can expect to receive a refund, an explanation, a correction or change in account terms, or have the case closed. Companies have up to 15 days to respond and a total of 60 days to close a complaint.

With this new database, complaints made are now viewable by everyone. According to the Government Executive website, the bureau received 45,630 complaints between July 21, 2011, and June 1, 2012. With this new information readily available, consumers can view which companies to steer clear of.

Currently, the bank topping the list with the most complaints is Capital One. This move by the CFPB could lead credit card companies to change their policies, benefitting consumers. The next step will be to see the new regulations added to the Credit CARD Act in response to complaints received.

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How Does a Credit Report Work?

Posted on June 12, 2012 by tlopez

The best way to improve your credit score is to improve your knowledge on credit reports.  There are three major credit bureaus that put together your credit report: Equifax, TransUnion, and Experian.  Although the information they gather is yours, you do not own it, these agencies own your information.  They have collected the information and they give you the right to view it.  You can view your credit report for free on www.anualcreditreport.com.  You can view one or all three, depending what you need it for.  Your credit score will be between 500 and 840, anything over 700 is a good score.

How your score is tabulated is unknown, but what makes up your credit score is no secret.  Some of the items that are calculated into your credit score are employment, department store credit card(s), credit card(s), installment loan(s), collection item(s), and inquiries.  To view a sample credit report go to: http://dld.bz/b4ZZc.

For department store credit card accounts they look at highest credit allowed, balance, and date opened.  The rating scale on this account is R1 to R9 with R9 being the worst.  The R stands for revolving, and it tracks how well you pay.  A similar scale is used for installment loans, I1 to I9, where I9 means the account is in collection.  On this scale, I7 means they took back the collateral.  For example, on a car loan I7 means the car was repossessed.  All accounts, department store credit cards, credit cards, installment loans, etc., have a twenty four month window.  If you fall behind and make a late payment on any account, you must make twenty three on time payments to get the late payment to drop off.  Inquiries made on your account have a very small effect.  If you are shopping for a new car, the inquiries made by the dealerships have no significant effect on your score.  However, if you have fifteen inquiries in one month it will cause a big impact because it appears you are desperate for credit and this raises a big flag.

This information is sold to banks by the credit bureaus; this is how they make money.  With this information banks look at who is a credit risk, will pay over a long period of time, and earn them the most money.  For example, banks look at bankruptcy filers to offer them a credit card with high interest.  Also, the bank is attracted to those who recently purchased a home because most of them will make big purchases like furniture, home improvements, etc.

There are some simple rules that will help you better manage your money and increase your credit score.  Prioritize your bills, and pay your bills immediately.  As stated by the President and CEO of Christian Credit Counselors, Greg McTaggart, “the longer you have that credit card, the more they make off of you.”  Think of your purchases.  Do not just focus on the present, focus on what you will need 4 to 8 years from now.  Poor planning leads to impulse buying, pre-schedule bills, balance check book, and have cushion for savings and emergencies.  To avoid fraudulent activity on your credit report, do not give out your information generously.  Check your report annually and dispute any irregularities with the credit bureau.

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Student Loan Forgiveness Options

Posted on June 6, 2012 by tlopez

Learn of the programs that can help you eliminate student loan

After my last post about Student Loans, I received a question asking for more in depth information about student loan forgiveness.  I researched and found the following information.  These are the careers that can possibly eliminate your student loans.  If you decide to partake in one of these programs, make sure beforehand that you can use it towards loan forgiveness.

Military

Students who are in the Army National Guard may be eligible for their Student Loan Repayment Program, which offers up to $10,000.

Teaching

Students who become full-time teachers in an elementary or secondary school that serves students from low-income families can have a portion of their Perkins Loan forgiven under The National Defense Education Act. This program forgives 15% of your loan for the first and second years of teaching service, 20% for the third and fourth, and 30% for the fifth. Contact your school district’s administration to see which schools are eligible.

See also the US Department of Education’s pages on Cancellation/Deferment Options for Teachers and Cancellation for Childcare Providers, as well as the Teacher Loan Forgiveness Form.

The US Department of Education maintains a database of low-income schools eligible for teacher loan cancellation for Perkins and Stafford loans.

Legal and Medical Studies

Many law schools forgive the loans of students who serve in public interest or non-profit positions. For more information, contact Equal Justice Works.

The US Department of Health and Human Services offers loan forgiveness programs through the National Health Service Corps and the Nursing Education Loan Repayment Program. These programs offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care (including remote and/or economically depressed regions).

The US National Institutes of Health’s NIH Loan Repayment Programs repays up to $35,000/year of student loan debt for US citizens who are conducting clinical medical research.

The US Department of Agriculture’s Veterinary Medicine Loan Repayment Program (VMLRP) offers loan forgiveness of $25,000 per year for three years for veterinarians who commit to work in a veterinary shortage area for three years. The application deadline is June 30.

Federal Agencies

The Federal Student Loan Repayment Program allows federal agencies to establish loan forgiveness programs to help recruit and retain employees. This is technically a loan repayment program and not a loan forgiveness program, as the agencies make payments directly to the loan holder and the payments represent taxable income to the employee. The agencies can repay up to $10,000 in Federal student loans per employee per calendar year, with a cumulative maximum of $60,000 per employee. Employees must agree to work for the agency for at least 3 years.

Public Service Loan Forgiveness Program

This program lets borrowers off the hook from their remaining student loan debt after 10 years of full-time employment in public service.

To be in the program, borrowers must be employed by the federal, state or local government; or any nonprofit, 501(c)(3) organization; or work full-time for AmeriCorps or Peace Corps.

To qualify for loan forgiveness, the borrower must have made 120 payments during a decade as part of the Department of Education’s Direct Loan program.

But, if the payments fall short or the borrower stops working full time, then there is the same risk of being kicked out of the program, with no loan forgiveness.

I hope this information helps you further understand your options for eliminating student loans.

Information found on finaid.org and money.cnn.com

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