Personal Financial Management - Anzelc and Associates Inc

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Personal Financial Personal Financial Management Management


Personal Financial ManagementPersonal Financial Management

This presentation covers the basics of personal financial management. It is very to the point, realistic and easy to understand. You will learn:




Budget development based on income and goals





Money management and decision making






Insurance coverage and saving money







The wise use of credit including credit scoring and the cost of credit







The wise use of credit including credit scoring and the cost of credit

Your rights as a consumer and how to protect your identity


Budget DevelopmentBudget Development


Budget DevelopmentBudget Development

Budget development is the basis of any well thought out financial plan. The cornerstone to a good budget includes the following:

• Establishing financial goals

• Calculating income

• Tracking your spending

• Classifying expenses

• Establishing a realistic budget

• Sticking to your budget

• Periodic review of your goals and budget


Establishing Financial GoalsEstablishing Financial Goals

The first step in financial wellness is establishing financial goals. Establishing your goals is the conscious effort of examining, defining and writing down what you want to achieve both financially and personally.

Once you have established your goals you can then proceed in designing a plan and budget that will help you achieve your goals.

In designing your plan you will need to prioritize goals as well as break them down into long-term and short-term with associated action items. This plan is the roadmap to goal achievement.


ShortShort--term Financial Goalsterm Financial Goals

Short-term goals are ones that you wish to attain within a couple of years. The hitch with short-term goals is making sure that they do not hinder you from attaining your long-term goals, so analyzing and prioritizing is a must.

Short-term goal examples:

Save $1,000 for vacation.

Pay off car loan in two years.

Establish an emergency savings account to cover one month of expenses.


ShortShort--term Financial Goalsterm Financial Goals

Other examples of short-term goals:

Buy life insurance

Pay off department store credit card

Save enough to pay cash for DVD player


LongLong--term Financial Goalsterm Financial Goals

Long-term goals are typically 5+ years out. Specific and well-defined goals are the best foundation for a financial plan.

Make sure that your goals match your values and beliefs. Achieving your goals should bring you a personal sense of fulfillment. If it doesn’t, then achievement is unlikely.


LongLong--term Financial Goalsterm Financial Goals

Examples of long-term goals:

Retire by age 62.

Save $40,000 for children’s college expenses.

Pay off house by 2016.

Save $15,000 for a down payment on a home.

Pay off all credit cards by 2010.


Tips for Financial GoalsTips for Financial Goals

Tips to ensure the progress of your goalsMake them realistic.

Make them specific.

Write them down.

Determine the action needed to make each of them happen.

Include the money needed to achieve your goals in your budget.


Financial Goal WorksheetFinancial Goal Worksheet

Goal: ___________________________________________________

Achieve by date: ______________ Cost: ____________________

Action required to achieve goal: Do by date:______________________________ _____________________________________________ _____________________________________________ _____________________________________________ _______________


Goal Worksheet SampleGoal Worksheet Sample

Goal: Establish an emergency savings account totalingone month’s expenses.

Achieve by date: within 6 months (1/1/07) Cost: Approx. $2,000

Action required to achieve goal: Do by date:Open up a separate savings account 8/15/06Determine monthly expenses 8/30/06Explore ways to fund savings (adjust withholdings/cut out cable/eat out less…) 9/15/06Incorporate amount into budget 10/01/06Set up direct deposit 10/01/06


Once you have established Once you have established your goals, the next step your goals, the next step

is calculating your is calculating your income.income.


Calculating Gross IncomeCalculating Gross Income

Your gross salary is your salary before any deductions are taken. This includes taxes, insurance, social security, retirement contributions …

To calculate your gross monthly salary, divide your gross annual salary by 12.

If you are self-employed, divide your annual income less your business expenses and divide by 12.


Calculating Net IncomeCalculating Net Income

Salary / wages (monthly take-home pay after taxes and deductions are taken)

Income from self-employment (multiply your gross monthly salary by .70.)

Retirement: Social Security, annuity, and pension payments

Interest and dividends

Alimony / child support

Rents / royalties

Income from other sources (disability, unemployment …)

Total Net Monthly Income

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________


Tracking Your SpendingTracking Your Spending

The majority of people spend more money than they think they do.

You may know the amount of your major bills but knowing where all of the rest goes is usually an eye-opener.

Tracking your spending is the best way to get a handle on where every dollar you spend goes.



There are a several methods of tracking your spending.

1. Keep a small notebook with you. For 30 days write down every single penny you spend and indicate whether it is by cash, check or credit card. Write down the date, the amount and what it is for. Also write down any money that you earn or are given. At the end of the week, total and transfer the amounts to an income and expense log.



2. Or, keep an income and expense logwith you at all times. Record income and expenses immediately.


Classifying Monthly ExpensesClassifying Monthly Expenses

There are three types of expenses:

• Fixed Expenses – same amount every month

• Variable Expenses – different amount every month

• Periodic Expenses – same amount but paid quarterly, annually…



Fixed Expensesinclude bills that you can count on being the same every month. They are the easiest to plan for as well as budget. These expenses, while easy to track, are often the most difficult to reduce. Fixed expenses typically include:

Mortgage or rent

Real estate taxes

Automobile payments

Medical insurance

Life insurance



Variable Expensesinclude expenses over which you have considerable control. They are the hardest to plan for, track and budget, but are the easiest to adjust. Variable expenses may include:

Food

Child care

Utilities

Clothing

Gifts

Gasoline and car repair



Periodic Expensesare similar to fixed expenses in that the amount is usually the same but different from fixed expenses in that they are not due every month but instead are payable every quarter, every six months or sometimes just once per year. Periodic expenses are easy to budget, but if not accounted for in a budget, become the most frequent type of expense that can start a financial crisis. Typical periodic fixed expenses may include:

Automobile insurance

Real estate taxes

Tuition

Self-employment tax


BudgetingBudgeting

Now that you know how to calculate your income as well as how to track your income and expenses, you are ready to establish a realistic budget.


BudgetingBudgeting

Use this budgeting worksheet to come up with your monthly budget. Fill in the monthly amounts, adjust your spending to the budgeted amounts, and review every three months.

Remember to include your periodic expenses. If your insurance is due every 6 months, divide the amount by 6 and enter this amount into your monthly budget.


BudgetingBudgeting

If your expenses exceed your income and you cannot easily adjust your expenses you may have too much debt. Here are the classic warning signs.


Identifying Debt Warning SignsIdentifying Debt Warning Signs

Signs of too much debt:




Little or no money in an accessible savings account





Only able to pay the minimum amount on your accounts






Using one card or loan to pay another







Not knowing how much you owe








Making payments but debt not being reduced









Using credit cards because you don’t have cash









Using credit cards because you don’t have the cash

Near or at credit limits



If you are experiencing some of these signs you can:Immediately reduce all non-essential expenses (cable, internet, cell phone, clothing, alcohol, cigarettes, vacations, movies …)

Sell one of your automobiles if not absolutely needed.

Get a second job to supplement your income.

Consider getting a roommate to share expenses.

Have other adults in the household contribute more to the household expenses.

Consider downsizing your apartment or house.

Look for a higher paying job.


Money ManagementMoney Management


How Long to Keep Financial RecordsHow Long to Keep Financial Records

Keep for 7 years:

Tax returns (IRS has 3-6 years to audit your return)

Mortgage interest statements

Alimony verification

Charitable contributions

Retirement plan contributions

Credit card statements with documented tax-related expenses

Home improvement receipts and expenses in selling home (keep for 6 years after selling)


How Long to Keep Financial RecordsHow Long to Keep Financial Records

Keep for 1 yearPay stubs to match up with W-2

Bills

Bank Records

Keep indefinitelyReceipts for big ticket items for proof of value and warranty

Non-deductible IRA contributions


Financial Decision MakingFinancial Decision Making

You don’t have to rely on a magic 8 ball for decisions. There are important safeguards you can take before doing business with any company. Whether you are having work done on your home, car or trying to find a credit counselor you can take steps to ensure that you are dealing with a reliable company.



Important TipsObtain at least three written quotes.




Ask for three references from each company.





Call the references.





Call the references.

Check with the Better Business Bureau.

• You can immediately check the reliability of a company by going online at

the Better Business Bureau, http://search.bbb.org/search.html. You simply type in the name of the company, the city and the state. A report will appear and give you the details of the company and if there have been

any complaints. This is a free service.


““Wants” versus “Needs”Wants” versus “Needs”

Ask yourself these questions:

Do I need this or do I just want this?

What will happen if I don’t buy it?

What could happen if I do buy it?

How did I live without it before?

Is it in my budget?

Does this expense hinder me in achieving my short-term or long-term goals?


Want or Need?Want or Need?

Large Purchases

Many decisions to purchase are made impulsively. For large purchases, take your time, walk away and think about it overnight. The next day or even week, you may find that the desire has lessened and maybe you didn’t need it after all.


Want or Need?Want or Need?

Small Purchases

If the purchase is not a large one but instead a small one or a multitude of small ones, like at a grocery store, shop with a list and do not deviate.


Rent or Buy?Rent or Buy?

There are pros and cons to consider when purchasing a home. First and foremost, you have to consider your cash flow.

Even though in the long-run a home may build equity for you, if you can’t afford to pay the monthly bills you won’t be able to keep it.

As a general rule, take the mortgage payment of the entire cost of the home and add 40%. This is what it may cost you to own your home.


Rent or Buy?Rent or Buy?

Expenses to consider when buying a home or condominium:

Property Taxes

Water and Sewage

Trash Pickup / Recycling

Homeowners Insurance

Maintenance and Repairs

Homeowners Association Dues and Assessments

Property Mortgage Insurance

Gas / Electric


Leasing vs. Buying Your CarLeasing vs. Buying Your Car

Should I lease or buy a car? It depends. Payment is not everything.

The general rule is if you want to own a new car every two years and can keep within the allotted miles then you might want to consider leasing.

If you cannot stay within the mileage, need the flexibility to sell your car at anytime or wish to eventually own your car and not have a car payment then you should consider buying.


Leasing vs. Buying Your CarLeasing vs. Buying Your Car

Tips for leasing:Always negotiate the leased price since this is what your payments will be based on.

Closed-end leases place the risk on the lender, not you, if the car is worth less than anticipated at the end of the lease.

The best cars to lease are those with the best book value after the term of the lease.

It’s almost always better to buy than to lease. If you can’t afford the payment then you can wait and save money until you can or simply buy a less expensive car.


The Cost of CreditThe Cost of Credit

Do you really know the cost of using a credit card and not paying it off every month?

Do you know the difference between rent-to-own versus paying cash?

How about the cost of a payday loan?

Oftentimes, one or more of the above scenarios can catch up with you and send you in a downward spiral. Know up front what credit costs.



Scenario 1: You buy a $1,000 television, use your department store credit card and make the minimum payment of 4%.




Result: It will take you more than 10 years to pay off that television. In that time, you will have paid more than $1,179.41in interest on a $1,000 TV.




Result: It will take you more than 10 years to pay off that television. In that time, you will have paid more than $1,179.41in interest on a $1,000 TV.

Tip: If you applied $80.00 to your debt every month, it would be paid off in 15 months, and would cost you only $196.09 in interest. You could also use a lower interest rate credit card versus the high rate of a department store card, which is commonly 28% and up.



Scenario 2: You sign a contract with a rent-to own store on a Whirlpool refrigerator that has a street price of $600. You agree to pay $14.99 per week for 1 year and 9 months.



Scenario 2: You sign a contract with a rent-to own store on a Whirlpool refrigerator that has a street price of $600. You agree to pay $15 per week for 1 year and 9 months.

Result: You will pay approximately $1,500 for this $600 refrigerator. This is equivalent to an interest rate of 130% !!



Scenario 2: You sign a contract with a rent-to own store on a Whirlpool refrigerator that has a street price of $600. You agree to pay $15 per week for 1 year and 9 months.

Result: You will pay approximately $1,500 for this $600 refrigerator. This is equivalent to an interest rate of 130% !!

Tip: Do not be fooled with the low advertised price of only $14.99 a week! They break your payment down weekly so it sounds low but if you do the math, $15 per week x 91 weeks = $1,365. Then you add tax and any fees. You are paying 2.5 times the cost of the refrigerator.


Alternatives to Using High Cost CreditAlternatives to Using High Cost Credit

There are alternatives to credit that you can consider:

Budget and save up money for wanted item.

Ask family or close friends for help to free up money with assistance in childcare, transportation...

Get a second job.

Ask employer about loans or cash advances.

Join a credit union.

Talk with your creditor and arrange for partial payments or possible deferment of a payment.

Delay purchase.


Insurance Coverage Insurance Coverage andand

Saving MoneySaving Money


Home Owners InsuranceHome Owners Insurance

How much insurance do I need?

According to the Insurance Institute, you need coverage for:

The cost of rebuilding your home (not including land).

Your personal possessions (policies typically insure up to 50% of home value). You should be aware of how you are paid for their loss.

• Actual cash value is the purchase price less depreciation.

• Replacement cost is the amount it would cost to buy the item new.

Additional living expenses if you have to live elsewhere during repairs.

Your liability to others (accidents, dog bites, legal defense…)

• Cost to increase your liability coverage is usually small and worth it. Legal fees and no-fault medical can easily escalate into astronomical amounts.


Auto InsuranceAuto Insurance

Tips for getting better rates

Shop around. Get at least 3 price quotes.

Check insurance costs before you buy a car. Sports models are typically more.

Ask for higher deductibles.

Consider dropping collision (damage to your car) and/or comprehensive (coverage on your car for vandalism, fire, theft…)

Maintain good credit.

Using the same insurer for your homeowners and auto may get you a multiple policy rate.

Ask about discountsLow-mileage

Group insurance

Good student

Senior citizen

Safe driver


Auto InsuranceAuto Insurance

Coverage and Recommended LimitsLiability

• Bodily injury – at least the legally required limit $250,000/$500,000, whichever is greater

• Property damage – at least the legally required minimum or $100,000, whichever is greater

Medical Payments - $50,000 or higher

Uninsured or Underinsured - $50,000/$100,000 or higher

Physical Damage

• Collision – actual cash value of auto less deductible

• Comprehensive – actual cash value of auto and contents less deductible

Towing/Rental Reimbursement are two inexpensive coverages to consider.


Renter’s InsuranceRenter’s Insurance

How much renter’s insurance do I need?

There are two types of renters insurance policies you may purchase:

Actual Cash Value – pays to replace your home or possessions minus a deduction for depreciation up to the limit of your policy.

Replacement Cost – pays the actual cost of replacing your possessions (no

deduction for depreciation) up to the limit of your policy.

Obtain enough coverage to cover your possessions, liability and living expenses in case of damage. Know what events you are covered for. For example, you may be covered for frozen pipe bursting but not from natural flooding. Note: You may be able to have multiple roommates on one policy.


Life InsuranceLife Insurance

How much life insurance do I need?

If you have dependents, then you want to consider the following needs when determining how much coverage you should obtain:

Final expenses including funeral, burial, travel…

Income replacement

Debt repayment

Education expenses of dependents and spouse

if needed to reenter workforce

Less monthly social security survivor benefits

A general guideline is that you should obtain five or sixtimes your annual income. The most accurate is the needsmethod. If you have no dependents you may not need any.


Saving for EmergenciesSaving for Emergencies

It is very easy to spin into a downward financial spiral when a crisis occurs in your life. Planning for, implementing and maintaining an emergency savings account is the most important safety net you can have.

Emergency savings has the power to keep you in your home, ward off bankruptcy, protect your credit as well as give you a peace of mind and a sense of security.

The importance of emergency savings is clear, now the question becomes, “How much total should I save and how can I do it?”.



How much should I save?

An emergency savings account should cover three to six months of your living expenses. It also should be in a liquid (can withdraw at any time) account separate from all other savings and checking accounts.

If your living expenses are $2,500 per month then you should aim for a savings account of $7,500-$15,000.



How can I save so much money?

Establishing an emergency savings takes time. If you are diligent in planning and following through it can be done and most of the time with little effort. The following tips outline in detail how you can get started.



1. Make a Small Lifestyle Change

Eat one less meal out per week. If you put the $20 per week intoyour savings, you will have saved $1,040 in the first year.

Drink water instead of soda pop or juice. If you order a glass of water instead of pop for lunch you could save over $390 per year. Both your physical and financial health will improve.

If you are a smoker, you could smoke one less pack per week and save more than $200 per year.



2. Use Direct Deposit

Have money directly taken out of your paycheck and deposited into an account only used for emergency savings. This is the easiest way. You probably won’t miss the money and you don’t even have to remember to make a deposit.



3. Use Your New Raise Wisely

If you can, deposit the amount or a portion of your new raise directly into an emergency savings account. Continue to spend asyou did before you received your raise until you have fully established the three to six months amount.



4. Deposit Windfalls into Your Account

If you have received an unexpected tax return, an inheritance, abonus, made a profit off of selling an item, put at least half of the amount into your emergency savings account. You can splurge a little but always keep your goal in mind.



5. Adjust Your Withholdings

If you get a tax refund every year you might want to consider adjusting your withholdings. Put the extra amount you would havebeen paying in taxes into a direct deposit savings account.

You should consult a tax accountant to make sure that you are claiming correctly and there are no other criteria that would make you owe taxes.



6. Save Your Payment

If you are working on paying off a credit card, car loan or any other kind of debt, when that debt is paid off put the equivalent amount of your monthly payment into your savings account. If that amount is too much, such as a car payment, then consider puttingat least half in your emergency savings account. You may not even miss it!


Wise Use of CreditWise Use of Credit


Your Credit ReportYour Credit Report

All consumers are entitled to a free credit disclosure, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. This credit disclosure includes all information reported to the companies including your credit report.

Note: This credit disclosure does not include your credit score.



www.AnnualCreditReport.com, a centralized service created by Experian, TransUnion and Equifax, is the official site to obtain your free credit disclosure. You can also call their toll free number, 1-877-322-8228, and they will mail you your free credit disclosure.

Many companies advertise free credit reports. They are typically scams. AnnualCreditReport.com is the only official site. You should never have to pay or give out credit card information in order to get your free credit report.



How long will it stay on my credit report?

Delinquencies – 7 years

Bankruptcies – up to 10 years

Inquiries – 2 years

Unpaid Tax Liens – 15 years


Your Credit ScoreYour Credit Score

What is a credit score?

A credit score is a number that represents the risk to a lender in providing credit and services to a particular individual. The score is a representation of the data from their credit report. Generally, the higher the score, the less risk the person represents.



According to www.myFICO.com, the consumer division of the company who originated credit risk scoring, your credit score is a combination of factors.

The most important factor is your payment history, followed closely by the ratio of theamount you owe compared to your available credit. Maxed out credit cards are a major risk factor.



How is my credit score used?

For approval or denial of credit

To determine interests rates

By some insurance companies in determining your home and auto insurance rates

By prospective employers in hiring decisions

For approval or denial of service by cell phone providers



Tips for improving your score:

Check your credit report for any inaccuracies and remove them.

Pay your bills on time. If you have missed payments, get currentand stay current.

Pay down the balances on all your credit cards and keep balances low.

Pay down delinquent balances first.

Keep new inquiries by lenders to a minimum.



Be aware of items that negatively impact on your score

Maxed out credit cards (Aim for balances under 35% of credit limit.)

Late payments

Multiple third-party inquiries on your credit report

Opening several accounts at once

Judgments, liens, debt management programs



How can I get my credit score?

If you are getting a free credit report from AnnualCreditReport.com, you can purchase your credit score at the same time. You can also purchase your credit score from:

Equifax: 800-685-1111; www.equifax.com

Experian: 888-EXPERIAN (888-397-3742); www.experian.com

TransUnion: 800-916-8800; www.transunion.com

www.MyFico.com


NonNon--Profit Credit CounselingProfit Credit Counseling

Many credit counseling companies are legitimate consumer resource centers but increasingly many are not. They push Debt Management Plans regardless of your personal situation and charge high fees as well.

Most Debt Management Plan companies are funded by credit card companies. This means they have a vested interest in getting you to pay your credit card balances even if it is not in your best interest.

There are ways for you to tell if the company is a legitimate agency and is interested in your personal finance and offer non-biased advice.


NonNon--Profit Credit CounselingProfit Credit Counseling

When searching for a legitimate agency ask the agency if they offer:

Free educational materials and workshops

Assistance in creating a budget

Help in developing a personal financial management plan for the future

Accredited financial counselors

Free counseling services

Non-commissioned counselors that do not receive compensation based on plans they may offer

A written contract with all fees outlined


Your Rights and Your Rights and Protection as a Protection as a

ConsumerConsumer


Safe Online ShoppingSafe Online Shopping

The Internet can make your shopping faster and easier, but there can also be pitfalls if you're not careful.

The National Consumers League, the Better Business Bureau and the National Cyber Security Alliance offer key advice to ensure you have a safe online shopping experience that does not become an opportunity for cyber thieves.


Safe Online Shopping Safe Online Shopping

Tip # 1Tip # 1

Know who you're dealing with.

Check out unfamiliar sellers with the Better Business Bureau and your state or local consumer protection agency. If you're buying gifts on an online auction site that provides a feedback forum, check the track record of the seller before you bid. Don't buy things in response to unsolicited emails from unknown companies, since these may be fraudulent.



Tip # 2Tip # 2Get all the details.

Check the name and physical address of the seller; how much the product or service costs; what is included for that price; whether there are shipping charges; the delivery time, if any; the seller's privacy policy; and the cancellation and return policy.



Tip # 3Tip # 3

Look for signs that online purchases are secure.

At the point that you are providing your payment information, the beginning of the Web site address should change from http to shttp or https, indicating that the information is being encrypted - turned into code that can only be read by the seller. Your browser may also signal that the information is secure with a symbol, such as a broken key that becomes whole or a padlock that closes.



Tip # 4Tip # 4

Pay the safest way.

It's best to use a credit card, especially when you're purchasing something that will be delivered later, because under federal law you can dispute the charges if you don't get what you were promised. You also have dispute rights if there are unauthorized charges on your credit card, and many card issues have "zero liability" policies under which you pay nothing if someone steals your credit card number and uses it.



Tip # 5Tip # 5

Never enter your personal information in a pop-up screen.

When you visit a company's Web site, an unauthorized pop-up screen created by an identity thief could appear, with blanks for you to provide your personal information. Legitimate companies don't ask for personal information via pop-up screens. Install pop-up blocking software to avoid this type of scam.



Tip # 6Tip # 6

Keep documentation of your order.

When you've completed the online order process, there may be a final confirmation page and/or you might receive confirmation by email. Print that information and keep it handy in case you need it later.



Tip # 7Tip # 7Know your rights.Federal law requires orders made by mail, phone or online to be shipped by the date promised or, if no delivery time was stated, within 30 days. If the goods aren't shipped on time, you can cancel and demand a refund. There is no general three-day cancellation right, but you do have the right to reject merchandise if it's defective or was misrepresented. Otherwise, it's the company's policies that determine if you can cancel the purchase and whether you can get a refund or credit.



Tip # 8Tip # 8Be suspicious if someone contacts you unexpectedly and asks for your personal information.

Identity thieves send out bogus emails about problems with consumers' accounts to lure them into providing their personal information. Legitimate companies don't operate that way.



Tip # 9Tip # 9

Check your credit card and bank statements carefully.

Notify the bank immediately if there are unauthorized charges or debits, if you were charged more than you should have been, or if there are any other problems.



Tip # 10Tip # 10Keep your computer secure for safe shopping and other online activities.

Protect your computer with spam filters, anti-virus and anti-spyware software, and a firewall, and keep them up to date. Go to www.staysafeonline.org and www.onguardonline.gov to learn more about how to keep your computer secure.



Tip # 11Tip # 11

Beware of emails offering loans or credit, even if you have credit problems.

Con artists take advantage of cash-strapped consumers and offer personal loans or credit cards for a fee upfront. These scammers simply take the money and run.



Tip # 12Tip # 12

Contact the seller promptly about any problems with your order.

Check the company's Web site for a customer service page, "contact us" link, email address, or phone number to get your complaint addressed or questions answered. If you can't resolve the problem, contact the Better Business Bureau at http://search.bbb.org/search.html or your state or local consumer protection agency for help.


Identity Theft Identity Theft

If your wallet is stolen or your credit information iscompromised then you should follow four basic steps:



If your wallet is stolen or your credit information iscompromised then you should follow these four basic steps:

1. Place a fraud alert on your credit reports and review your credit reports.




1. Place a fraud alert on your credit reports, and review your credit reports.

2. Close the accounts that you know, or believe, have been tampered with or opened fraudulently.






3. File a report with your local police or the police in the community where the identity theft took place.






3. File a report with your local police or the police in the community where the identity theft took place.

4. File a complaint with the Federal Trade Commission 1-877-ID-THEFT (438-4338); TTY: 1-866-653-4261.



Protect your IdentityWhen asked by a cashier, say your phone number is unlisted.

Don’t carry your social security card in your wallet. Next time you get your driver’s license ask them not to put your social security number on it.

Thieves may use your pre-approved credit card offers that you throw away. You can opt out of future "pre-approved credit" offers by calling 1-888-5-OPTOUT (1-888-567-8688).



Protect your Identity Don’t carry any credit cards you do not normally use. Leave them at home or cancel them, in writing, and cut them up.

Shred anything with personal information that you no longer need.

Drop off outgoing mail at a USPS mailbox. Pick up your mail immediately after delivery or get a P.O. box.


Fair Debt Collection Practices Fair Debt Collection Practices

The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection.



Some of your rights include:

Within five days after first contact, they must send you a written notice telling you the amount of money you owe; the creditor; and

what action to take if you believe you do not owe the money.

A debt collector may not contact you at work if the collector knows that your employer disapproves of such contacts.

You can stop a debt collector from contacting you by writing a letter to

the collector telling them to stop.

In most cases, the collector may not tell anyone other than you and your attorney that you owe money.



Debt collectors may not:Use threats of violence or harm

Use obscene or profane language or repeatedly use the telephone to annoy someone

Use any false or misleading statements when collecting a debt

Use a false name

Deposit a post-dated check prematurely



For more information on what your rights are under the Fair Debt Collection Practices Act you can visit www.ftc.gov/bcp/conline/pubs/credit/fdc.htmfor an easy to read and friendly consumer brochure.

If you want to file a complaint against a debt collector you may call 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261 or visit www.ftc.gov.



Congratulations!Congratulations!

You have just completed the Personal Financial Management course presented by Anzelc &

Associates, Inc.

Feel free to come back and visit anytime. For even further financial assistance, you can check out our financial calculator links on our

education page.

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Personal Financial Management - Anzelc and Associates Inc