Affordable housing - is it hard to find??

Is affordable housing something that is difficult to find? Section 8 or not, it is difficult to find a good home, in an area that is not only nice, but provides you with the things you need.  So, for many, if not most, the answer is yes.  According to Berkeley-Charleston-Dorchester Housing Needs Assessment of 2014, “A thriving region is weakened by an unaffordable housing market that fails to meet the needs of its residents.” And what is more, “If the housing issues facing the region are ignored, residents will continue to migrate to the outskirts of the region where fewer employment centers exist, public transportation is inaccessible, and public facilities are scarce.”  Who then takes the responsibility to solve this issue? Berkeley-Charleston-Dorchester Housing Needs Assessment of 2014 says it should be, “a collaborative effort of local governments, housing providers, community leaders, private sector businesses, non-profit organizations, and other key stakeholders is required to address the housing affordability crisis the region is facing and plan for the future of our community.”

At Family Services Inc. (FSI), we are doing our part to help the affordable housing crisis in the region. FSI offers a number of Housing Stability Programs.  We offer classes that help to pull people out of poverty by equipping them with the knowledge they need on many subjects. Our Homeownership Resource Center is a HUD- and South Carolina State Housing-approved agency that offers assistance in areas such as home purchase advising, down payment & closing cost assistance loans, foreclosure prevention counseling, reverse mortgage counseling, and fair housing workshops. The Homeownership Resource Center not only makes it possible, but gives people a chance to own their first home. Another way that FSI is fighting poverty is through homeless prevention services such as, Lease on Life, Shelter Plus Care- Home to Stay Program, and Supportive Services for Veteran Families.

Lease on Life program provides permanent supportive housing to chronically homeless individuals. Participants are disabled and have been homeless for at least a year or four times or more within the last three years.

Shelter Care Plus program allows FSI to obtain and subsidize permanent housing for individuals who are clients of Charleston-Dorchester Mental Health Center.

Supportive Services for Veteran Families is a service that exists to assist very low-income veterans in the Charleston Tri-County area who are currently homeless or need assistance to avoid homelessness.

If you are, or someone you know is a veteran in need of housing assistance, please contact the SSVF information line at 843.737.8389.

FSI also offers Conservator & Representative Payee services. These services allow FSI to manage the finances of more than 1,700 clients to help them live as comfortably as possible and maintain financial stability.  FSI also offers Behavioral Health Service programs.

What exactly is Section 8 housing?

Section 8 housing provides people with low income or almost no income a solution to potentially being homeless.  The individuals that qualify are required to pay 30% of their monthly income to rent.  The rest of their rent is paid by the local housing authority.  The waiting list to receive federal rent subsidies is quite long. Recipients often wait years before they ever receive a voucher.  Once they receive the voucher, they may begin to look for a place to live that falls within the price range.

Recently a few Beverly Hills investors with Latitude Management Real estate purchased two West Ashley apartment complexes that house several low- income tenants.  Both built in the 1960s, Charleston Arms & Georgetown Apartments were recently purchased for $ 18.7 million.

According to an article in the Post and Courier, the tenants who rely on federal rent subsidies were originally told they had 30 days to pack up and leave their “homes” for good.  However, several S.C. Human Affairs Commission complaints were filed due to this, and the State Representative, Wendell Gilliard, met with the company that manages the apartments. This proved to have some effect because shortly after, the Section 8 tenants received notice that they would be allowed to stay in their current homes until May 2016.

Gilliard asked Trademark Residential to grant these tenants a time span of one year to move, and to pay their moving expenses as well. What they actually received was a $25 rent increase and they were given until May 2016 before they must leave.

In a sense, this agreement or compromise was a saving grace for many, if not all of these tenants.  Statistics show that most of the people who rely on Section 8 are either senior citizens, mentally or physically disable, or veterans.  A lot of them do not have anyone to care for them, which is why they rely on the housing stipend in the first place. To give them a month or less to find a new home and move out would have been near impossible for most.  

A similar situation in North Charleston also has the potential to leave the tenants of Dor-Towne Apartments on Dorchester Road in North Charleston.  The tenants who currently occupy the 84-unit apartment space were told they had a month to vacate the premises after it was purchased by a firm from North Carolina for $4.1 million. Although these residents do not rely on federal housing subsidies, they are considered to be low-income tenants. This clearly portrays the less flattering side of the real estate boom.

An apartment market research firm based in Charlotte states that within the past year, the average rental rate has increased about 5.4%. The monthly average in the Charleston area for a one-bedroom unit is $907.

In South Carolina, the fair market rate for a two-bedroom apartment is $758, according to the National Low Income Housing Coalition. A renter, without paying more than 30 percent of income on housing, would need to earn $14.57 per hour to stay in a two-bedroom unit, according to the coalition. The necessary wage rises to $18.08 an hour in the Greater Charleston area, the highest of any metropolitan region in the state. The minimum wage in South Carolina is $7.25 an hour.  

Do all landlords accept Section 8 tenants?

Landlords are not required to rent to people who have Section 8 vouchers.  In fact, this is why most places that do accept Section 8 tenants have a waiting list a mile long. It could take up to a year before they have space for them. If landlords decide to accept tenants with these vouchers, there may not be a shortage. This means that it is not under the landlord’s discretion to determine how many Section tenants they are willing to accept.  If the door is open to one, it must be open to all, as long as there are vacancies.  Most of the time, landlords receive 20 percent less in rent from the Section 8 tenant than they would be able to get from a different tenant without a federal housing voucher.  This often turns landlords away from openly accepting the Section 8 tenant. 

  

On a different note, Section 8 tenants can also be a saving grace for many property owners, especially if the property is located in area that is known for theft, vandalism, violence, or drugs.   In addition to this, their rent is guaranteed to always be paid on time and directly deposited into the landlord’s account.

By Lindsey Jenkins, Marketing & Development Assistant, AmeriCorps VISTA

Why Financial Capability Matters in 2014

Last year, the White House declared April Financial Capability Month, proclaiming that “all Americans deserve the chance to turn their hard work into a decent living for their families and a bright future for their children. Seizing that opportunity takes more than drive and initiative -- it also requires smart financial planning. During National Financial Capability Month, we recommit to empowering individuals and families with the knowledge and tools they need to get ahead in today's economy.”

With the unemployment rate in South Carolina steadily decreasing from 8.1 percent in February 2013 to 6.4 percent as of February 2014, it’s crucial that those gaining employment use practical money management skills. That’s where financial education comes in. Financial education is a means to help alleviate and prevent poverty. Although the unemployment rate is down in South Carolina, the number of those in poverty is up. Currently 1 in 5 South Carolinians live in poverty compared to 1 in 6 in 2000. That’s nearly 300,000 more residents.

Image via Pearson Foundation

Regardless of your economy or your household income, it’s important to realize that financial education matters. Those individuals who receive it are more likely to make the right financial decisions for themselves and their families that will help them build and maintain assets. When people are buying houses, maintaining a home or steady residence, and are paying on their debts, it positively affects the local economy.

Financial education is more than just gaining a budgeting tip here and a saving strategy there. This knowledge converts into skills, which convert attitudes, and those attitudes affect behavior. What you’re left with is healthy financial habits. Those that take charge of their personal finance and choose to become informed consumers avoid scams, predatory lending and other deceptive practices, and can effectively address their needs versus wants.

Family Services, Inc. (FSI), as a charter member of NeighborWorks America, aligns itself with the initiative to help end poverty and raise better awareness for financial education. Their staff of licensed professionals is dedicated to highlighting the importance of financial capability and helping those in the community establish and maintain healthy financial habits. Through its programs and services, FSI advocates, counsels, and educates for clients so they can make the most of what they have.

Written by: Sarah Cornwall, Marketing Resources, at Family Services, Inc.

Make a New Year’s resolution to rid stress from your life…

It’s simple, get your finances in order--you won’t believe how good it feels to be money smart.

Tips for making the list:

BE POSITIVE.

Sometimes this is easier said than done. To keep in the mindset, try wording your goals positively, such as “we’re going to spend money only on things we truly value.” If you stray from your goals, don’t beat yourself up or dwell on your mistakes. It will only serve to make you feel worse and keep off track. Just jump right back on that horse and promise yourself to stay on the path.

Keep your resolutions attainable.

Check in with your goals at least once a month. Set a reminder for yourself. For instance, decide that every time you make a payment on that credit card bill, you’ll revisit your financial resolutions; this will help you track how far you’ve come. Remember that if you’ve made it this far, you can reach your goal!

Be specific.

Make instructions for yourself for just how exactly you plan to attain your goals. Instead of saying you will save more, write a budget up. This will help keep you on point.

Make a contract with yourself.

With your resolutions set, document all your goals. You could even include reasons for committing to them. At www.FutureMe.org, email this to your future self a month, two months, six or 12 months in advance, or print out the letter and place it on the fridge, so you can be reminded of why these goals are important, especially when other crises seem to get in the way.

What our in-house experts recommend you put on the list:

Review your insurance.

Your policies may be outdated and not suited for your current needs. Review what you have: homeowners, life, even auto may be insufficient relative to your present financial situation.

Check your credit score.

Be aware of where your credit stands and take steps to repair any negative aspects. You get three free credit reports each year, there is no excuse for not reviewing what is one of your most important financial reports, especially since errors in these reports are not uncommon. www.annualcreditreport.com

Invest what you can.

Even if it’s just a little, invest in yourself and family. It could be as simple as paying yourself first by contributing to your savings each month, or it could be a retirement fund, an education fund, or making extra mortgage payments. Consider these things as investing in yourself and your future.

Taking care of these will allow you to enjoy a happier, more prosperous and stress-free new year.

Written by: Sarah Cornwall, Marketing Resources, at Family Services, Inc.

Don’t stress! There are still deals to take advantage of, even after Black Friday!

Budgeting isn't easy, but it’s a GREAT feeling knowing you have a healthy bank account. Let us help make holiday budgeting and purchasing easier—attend December’s Credit Club! In the meantime, here are some suggestions from our budgeting professionals.

Have a plan

Avoid holiday headache overspending and make a detailed budget plan. Encompass all that is part of the holiday season into the budget, including travel, food, events and parties. There should be a long list of what your holiday expenses are. While planning and spending, think of ways where you can cut back on your budget or save on expenses.

Comparison shop all your planned purchases

Check ads in newspapers and visit retailers’ social media pages or websites. Saving just a few dollars on each expense adds up! If getting the better deal means driving to several different shops, save gas money by grabbing everything while you are already out or try carpooling with a friend.

In the true spirit of the season, the thought really is what counts

It’s tempting to use shopping as a way to get into the holiday spirit. Instead of making time for shopping, make time for friends and family, and creating gifts that are personal. If holiday expenses really have you worried, talk about it with friends and family; they might be just as eager to set limits on gift spending.

Food for thought for the New Year

Employ multiple saving strategies in addition to savings accounts, such as the whole family pooling and saving change over the year. Every little bit only serves to help, and you might be surprised just how much you can actually save in a year while still making ends meet.

If you do especially well this holiday season and spend under your budget, consider getting a head start on Christmas for the following year. After-Christmas sales are competitive with Black Friday deals; cards, decorations, and Christmas-themed gifts will be hugely discounted.

Don’t miss out on a workshop that is sure to help make your holiday full of cheer! This month’s Credit Club “Creating Memorable Christmas Traditions” on Thursday, Dec. 5 at 6 p.m. will help you create those wonderful Christmas memories for you and your family that will last a lifetime! Click here to learn more and register.


Written by: Sarah Cornwall, Marketing Resources, at Family Services, Inc.

Quick tips to get you on the path to homeownership

Owning a home is a great way to build an investment and see return on all the “rent” you’re already paying month to month. Right now, interest rates are STILL at an all-time low. If you’re mortgage ready, take advantage of this and get yourself a good deal!

1.   Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs. If you pay more than 30 percent of your gross monthly income to put a roof over your head, you are living ABOVE your means. The term “HOUSE POOR” will have real meaning.

Keep in mind: Owning a home is not like renting – you are the landlord. When it breaks, you fix it. EXPECT unexpected costs. When new appliances, roof repairs and plumbing problems pop up; these costs can drain your bank account.

2.   Go to a bank or lender to get pre-qualified. This initial step allows you to assess any goals or needs you may have regarding your mortgage with your lender. From here, you can learn about your various mortgage options and the type that might be best suited to your situation.

Keep in mind: Being pre-qualified is NOT the same as pre-approved. It is strongly advised that those seeking homeownership do not house hunt until they are pre-approved, which is much more extensive.

3.   Find a realtor once you are pre-approved and set on what you can afford. Meet with a few agents, to find one you feel confident with. An agent who is a member of the National Association of Realtors is a good sign as they adhere to a strict ethics code.

Keep in mind:  A good real estate agent can help guard against any pitfalls you may encounter during the process, so choose wisely.

4.   Know and understand the various mortgage products available to you. Factor in closing costs you can afford. This will help you choose the best mortgage program for you. As a first time homebuyer, options may be available to you, such as low interest programs and down payment assistance.

Keep in mind: If you plan to move within five to 10 years, an adjustable-rate mortgage (AMR) could be beneficial. However, if plans change and you stay in your home for longer, you may be stuck with payments you can’t afford.

5.   Try to hold off on big purchases or any decisions that could affect your credit once you’ve signed a contract and a closing date is set. Typically, lenders pull credit right before closing to make sure nothing has changed with your financial situation.

Keep in mind: If you feel over-stressed, lost, or uncomfortable with the homebuying process or any part of it, don’t be afraid to ask for help. The Homeownership Resource Center, a division of Family Services, Inc., not only offers help and guidance, but piece of mind.

To learn more about the workshops and individual appointments we provide with our licensed homebuyer coaches, contact us at 843.735.7862 or info@fsisc.org.

Written by: Revena Dawson, Home Purchase/Credit Advisor, & Sarah Cornwall, Marketing Rescources, at Family Services, Inc.

4 ways to use your tax refund to strengthen your overall financial situation

If you are anything like me, you’ll be more than tempted to use your tax refund for that flat screen you’ve wanted, or maybe that weekend vacation you keep putting off. It feels good to finally get those material things you’ve “needed”. However, like most material indulgences, the charm wears thin and quick…especially when an emergency comes up, or reality hits that you should invest more in your future.

I asked our experts here at Family Services, Inc. for different ways to use a refund that will leave you feeling secure, and confident about your financial situation.

 1.       Pay off/down debt: This encompasses a lot. Who doesn’t have debt these days? Pay off a credit card balance. Double up on a mortgage payment. Doing this once a year can shorten your overall payment period (provided it's allowed under the terms of your loan). If you’re not a homeowner, apply this trick used for mortgages to your student loan debt. Paying down debt, whether it’s a credit card, car loan, mortgage, student loan, or any other kind, is usually a guaranteed return equal to the interest you would have otherwise paid.

2.       Make an emergency fund: If you have your debts under control, and don’t feel it’s necessary to make an extra payment, then your tax refund might be an excellent starting point for building an emergency fund. Personally, my refund will be put away as “emergency funds”. The other day I left work to find that I had a flat tire. Needless to say, I had NO money to pay for this unexpected expense and was forced to charge it, maxing out my credit card!

3.       Invest: If you have no debt and a healthy emergency fund (kudos to you), then you can always look to the future. A tax refund can be used to put a down payment on a house, buy a car, or help pay for an education for you, or the little ones (look to ESA plans and 529 plans). Try one of these: 401(k), 403(b), Roth IRA, Traditional IRA, SEPs. Have questions? One of our licensed financial coaches can help! The purpose and the time frame will help you decide the kind of investment you should be looking at.

              

4.       A savings account: Instead of a regular savings that would perhaps hold your emergency fund, try a Christmas club account. Christmas is the same time every year, but it still catches the majority of people off guard. Even better, invest in a Certificate of Deposit account, similar to a savings account but with higher interest for your benefit.

Go to www.fsisc.org or call 843-735-5522 for information or assistance.

Written by: Sarah Cornwall, Marketing Resources Assistant at Family Services, Inc.

Bankruptcy: not the "easy" way out

So, we all know who Gabby Douglas is.  She’s America’s new sweetheart with the huge beautiful smile that had all of us glued to the television during the Olympics. One thing you may not know about little Gabby, is that her mother had recently filed for bankruptcy.  When seeing that information, I’m sure many of you gasped. There has always been a stigma attached to that word, but there doesn’t need to be. Bankruptcy is a federal law that enables individuals/couples to have a restart or a reorganization of their debt. It can also save a home from foreclosure, car from repossession, or stop wage garnishments. All that being said, it should still be used as an option of last resort.

Natalie Hawkins, Gabby’s mother, filed Chapter 13 bankruptcy in her home state of Virginia.  A Chapter 13 is a reorganization of the debts owed. This chapter allows for filers to keep their home and to make payments to the courts on their debts for a predetermined amount of time. This varies from the Chapter 7 which is basically a liquidation of assets and a complete dissolution of dischargeable debts. The major difference is that in a Chapter 13 bankruptcy, the debtor pays back their debts. In a Chapter 7, the debts are wiped clean.

Ms. Hawkins has four children, including Gabby, to worry about. She is listed to be on disability and have child support coming in, so she does have income, but no room for additional income. This takes her out of working with a debt management program or possibly applying for Hardest Hit Funds through counseling agencies if they are offered in her area. If she had come to receive counseling through our program, we would have told her to prioritize her bills. Her first priorities should be housing and transportation, which in her case, were saved through her bankruptcy. Filing for bankruptcy has allowed Gabby’s mother to relinquish the stress and headache of worrying about delinquent house and car payments or her other debts, and to now focus her attention on all of her children including her 16-year-old, two-time Olympic gold medalist daughter. If, in doing this, she has been able to assist her daughter in realizing her dream among other things, then why not?

I also find it commendable that Ms. Hawkins isn’t letting the publicity around her financial situation to get the best of her. This has been something that she’s had to deal with and has done so humbly and publicly. She should even be an inspiration to many folks who bury their heads in the sand and try and pretend it isn’t happening to them. Ms. Hawkins has stood up and faced her problems, received assistance, and handled business – WAY TO GO!!

Just goes to show you that life may throw you a curveball or two (sorry for the cliché), but things can turn around at any moment. Gabby is going to be given many sponsorship and appearance opportunities and should be able to help her mother in return for the sacrifices Ms. Hawkins has made for her family. No hard feelings or judgments here. Just remember, credit issues are just stuff that can be fixed and improved in time – it’s always a work in progress. And…if all else fails, time will heal all wounds (especially in regards to your credit).

Go to www.fsisc.org or call 843.735.7802 for bankruptcy information or assistance. 

Written by: Kristin Glantz, bankruptcy counselor at Family Services, Inc.

What is a Representative Payee?

By Aaron Heath

What is a Representative Payee?

I was talking to a friend the other day who was asking me about what we do as a company. I said ‘Well, we do financial literacy and first time homebuyer education, foreclosure prevention, credit and bankruptcy counseling, debt management, behavioral health services, homeless prevention, conservatorship and have a representative payee program.’ To which he said, more or less, ‘representative what?’ causing me to realize that representative payee really is a strange combination of words to describe what it actually entails- although this is exactly what the Social Security Administration (SSA) calls it. So, as my third blog posting I have decided to explain exactly what it means to be a representative payee and why they are important.

A representative payee is someone who handles an individual’s Social Security benefits in the case that that individual is deemed to be incapable of handling the benefits themselves. Or more mundanely, I mean eloquently, defined by the Social Security website:

Social Security's Representative Payment Program provides financial management for the Social Security and SSI payments of our beneficiaries who are incapable of managing their Social Security or SSI payments.

These benefits include Retirement, Survivors and Disability Insurance (RSDI) and Supplemental Security Income (SSI). (More info about how to receive and who receives these benefits can be found here and here.) There are three basic reasons why SSA would assign a payee to a beneficiary:

• They are a minor- under 18
• They are deemed legally incompetent (by a doctor)
• SSA determines that they are incapable of handling their money

Payees are responsible for ensuring that the beneficiary’s basic needs are met- food, shelter, spending money, etc… and that they have “a stable living environment.” The full list of their responsibilities can be found here. Their responsibilities include helping to make sure that these individuals stay off the streets, that they are reasonably housed, that they don’t get taken advantage of or spend all of their benefits on illicit substances, and that they have access to basic necessities. The stability that this program provides also results in a lower overall burden on public resources such as medical care and law enforcement.

In working with some of the payees from our department, I have seen what a tough job it can be. Payees DO NOT have power of attorney, so they often have to negotiate, compromise, explain, talk down, work with and make deals with our clients to help them understand what is going on with their money. After all it is THEIR money, and they let you know it. You can probably see how it can get pretty heated sometimes.

Here in Charleston, Family Services, Inc. has about 500 Representative Payee Clients. We work with the local social security office as well as several others from around South Carolina and in some cases Georgia. From what I can find there more than seven million Americans who have a representative payee, most of them minors.

Hopefully this was somewhat enlightening for you.

Irony, Scams, Theft, and Protection

Identity theft is one of those buzz phrases that you constantly hear passed around the office, on TV, your parents, friends, etc, etc… It is also one of those buzz phrases that you casually ignore until “you or someone you know” goes through the experience- although usually it takes you being the one. As a 24 year old I am one of those people who doesn’t learn vicariously through other people, but rather, I wait to “experience” things myself (hints of sarcasm?). In other words I can be hard headed and naïve, and in this case it was to the reality of account theft.

Last Sunday I go to check my bank account and I see a $15.62 hold on my account at McDonald’s. I have not visited or bought anything at McDonald’s but maybe once in the past year. So I called up my bank and they told me to hang in to see if the charge actually goes through- maybe it was a gas station or other restaurant or something. Again insert naïve Aaron- “hmm well must have just been some gas station or bar.” No red flags or anything.

On Tuesday I had to fill up on gas on the way to drop a printer off for work. My card was denied at every pump at the station. I knew I had money on it. Strange. Once again I called up my bank. I am transferred over to fraud protection and told that my card had been “compromised,” and that my card was shut down and a new one was on the way. Very strange. But, I inquire and apparently it was shut down because I reported the McDonald’s charge. So, at this point I just had to wait for a new card, but all was ok.

On Wednesday I attended a “Fraud Protection and Identity Theft Seminar” presented by Synovys. I learned a lot of cool things about the present state of identity theft (a couple of which I will cover below), but one in particular was the importance of password choice. Basically- don’t use the same password for your all of your logins, mix lower case and uppercase characters, use “$%&@” characters, and numbers. Upon reflection I realized that I couldn’t violate these rules any better if I was trying. Same passwords across my accounts, simple words, and few if any non-letter characters.

When I got back to the office, in light of what I had learned, I at least decided to change my Online Bank Account password to be different from my Facebook Password. Well, good timing because as soon as I logged in, I saw that my account had been spent down to $10. Oh the irony! I go to an Identity Theft Seminar and come back to see that my identity had been theft-ed.

Back on the phone with the bank. After being passed between departments for a while, I landed in the fraud department. “Sir, this card was used in person for all of the charges that you are citing.” Me: “There is no way I made those purchases! And, I have my card right here; I just used it to give you all my number!” (**internally questioning myself. “Wait. Did I spend $150 bucks at Exxon on Sunday?”**) Fraud Dep.: “Sir have you been to Chicago anytime recently?” Me: “Whaaat?! I live in Charleston, SC!”

Frad Dep.: “Well these things happen, counterfeit cards are becoming a common occurrence.”

While I still have no idea how my number got out, luckily the fraud department is working with me and will be crediting my account. Needless to say I think it is appropriate and enlightening to consider some of the dangers out there. Here are the top 10 scams for 2011 that I learned about at the seminar. Some are quite surprising. I will also show you what a good password is and a way to remember it.

Top Scams for 2011

From scambusters.org

1. Phishing and identify theft. The growth of malware mentioned above, coupled with hijacking of social networking accounts and more sophisticated hacking technology, means that identity theft will remain the Number One Internet crime for the foreseeable future.

2. Malware. As many as 60,000 new pieces of malicious software appear every day, says McAfee. The growing use of USB drives to store and transfer data may also contribute to the spread of malware.

3. Economy related scams. The economy is taking much longer to recover than hoped, so expect to see foreclosure and load modification scams to continue. Plus, as mentioned above, we now include work-from-home scams in this category.

4. Nigerian scams. In their report referred to earlier, PandaLabs points out that the latest version of the Nigerian scam claims that a compensation fund has been set up and invites previous victims to put in a claim. Then, of course, the scammer requests a fee before the supposed compensation can be released. Nigerian crooks are also muscling in on the bogus girlfriend scam previously dominated by the Russians. Victims, befriended online, end up paying supposedly for airfares and other expenses for their new but non-existent sweetheart.

5. Lottery and gaming scams. We've also broadened this category to include online gaming scams, featured in an earlier Scambusters report. We expect to see significant growth in bogus gambling-related sites, and a continuing stream of phony lottery schemes.

6. Bogus and fraudulent Internet sales. As mentioned above, this category now embraces bogus retail sites selling nothing but thin air, as well as online auctions and classified ads. We think this will be more than enough to push this category up one further place in our Top 10 scams list.

7. Skimming. European banks report a huge increase in debit and credit card information theft, especially at ATMs that have been rigged either to collect card details or to trap the card so the crook can use it. Expect to see a similar trend in the US during 2011.

8. Doorstep scams. With the Census out of the way, this crime drops two places, but bogus contractors, charity collectors, utility workers and others who knock at your front door bent on crime keep it strongly in the charts. And, of course, a major natural disaster, such as hurricane, earthquake or floods, could push this higher.

9. Investment scams. Investors have become more cautious about Ponzi schemes, which draw in new money to pay earlier investors until the whole scheme collapses. But low interest rates will continue to push investors into high-risk and shaky projects. Expect also to see more computer trading programs with dubious claims that they can "beat the market."

10. Travel and vacations. Americans are still vacationing at home in the weak economy and amid safety fears about traveling to Mexico. But with the world economy still unsteady, scammers are more desperate than ever to catch out those who do journey abroad. Watch out especially for a huge ticket scam for the forthcoming London Olympics 2012.

Another great site that I learned about is fightidentitytheft.com. Its got great resources and information regarding how to protect against scams and the steps to take once you think that you have a problem.

DEFINITELY NOTIFY YOUR BANK AS SOON AS YOU THINK YOU HAVE CHARGES WHICH AREN”T YOURS!!!!

also, CHECK YOUR ACCOUNT BALANCE DAILY IF YOU USE A DEBIT CARD!!!!

or, SIGN UP FOR ALERTS!!

Here is another good article from CNBC on the riskiest places to use your Credit Card.

What makes for good password protection?

1. Don’t use the same password across multiple accounts! Especially between Facebook and your Bank account for example.

2. Make it at least eight characters long.

3. It should not contain your user name, real name, or company name.

4. It should not contain a complete word.

5. Is should be significantly different from previous passwords.

6. Make sure that it contains characters from each of the following four categories:

Character category	Examples
Uppercase letters	A, B, C
Lowercase letters	a, b, c
Numbers	0, 1, 2, 3, 4, 5, 6, 7, 8, 9
Symbols found on the keyboard (all keyboard characters not defined as letters or numerals) and spaces	` ~ ! @ # $ % ^ & * ( ) _ - + = { } [ ] \ | : ; " ' < > , . ? /

NOTE: A password might meet all the criteria above and still be a weak password. For example,Hello2U! meets all the criteria for a strong password listed above, but is still weak because it contains a complete word. H3ll0 2 U! is a stronger alternative because it replaces some of the letters in the complete word with numbers and also includes spaces.

So, how the heck am I going to remember these passwords?

Try using pneumonic devices:

Example:

1. A sentence you would remember:

a. I Attended North Carolina State University For My Undergraduate Degree

2. From that we can assemble:

a. iancsufmud

3. Now we can replace some of the letters which logically look like numbers:

a. 1anc5ufmud

b. i = 1 and s = 5

4. Next we can add non-numeric and non-letter symbols

a. 1@nc5ufmud

b. a = @

5. Finally, capitalize a couple of letters

a. 1@NC5ufmuD

b. NC- the natural abbreviation for North Carolina

c. D- just the last letter, easy to remember to capitalize

6. Done!

a. We now have a strong password that is easy to remember:

b. 1@NC5ufmuD

Here is some more info from Microsoft.

As always let us know if we can assist you with anything. Michaele, our Debt Management Director is very knowledgeable on scams and very accessible. Email her at mpena@fsisc.org

Consumers Should Use Caution When Considering Some Forms of Borrowing or Purchasing

Interest and Fees Can Easily Outweigh the Benefits
The National Foundation for Credit Counseling

Desperate times often call for desperate measures, but sometimes those tactics can leave you worse off than where you began. This can be the case with people struggling to find money for holiday purchases.

Three areas to avoid when looking for extra money this holiday season:

Payday Loans - On the surface, getting the cash you need may seem worth it at any cost. But it’s that cost that can become financially back-breaking. To obtain a payday loan, you write a post-dated check for the amount of the loan plus any fees the lender tacks on. You then receive the amount of money you initially needed to borrow, promising to pay back that amount plus the fees. The term of the typical payday loan is one to two weeks, at which point the lender cashes your post-dated check. Most payday lenders will charge a certain dollar amount per $100 borrowed. For example, they may charge $15 for every $100 you borrow. Thus, if you needed $300 for two weeks until your next paycheck came in; your post-dated check would be for $345. What’s $45 when you desperately need $300? Here’s the catch…that $45 represents an Annual Percentage Rate of 390 percent. You wouldn’t dream of taking out any other type of loan with triple-digit interest. And, if this isn’t bad enough, many consumers cannot repay the loan at term, and end up rolling it over, thus adding on more fees and interest.

Pawn Shops – People can do several things at pawn shops. They can borrow money by putting up something of value as collateral, they can sell their merchandise outright, or they can buy the merchandise that is for sale at the shop. There are bargains at pawn shops, but only for those buying the merchandise, not for the sellers. Typically, the person pawning the merchandise receives a sum of money (usually nowhere near the true value of the item) which he or she agrees to repay with interest. If the loan is repaid by the end of the term, the merchandise is returned to the owner. If the loan is not repaid, the consumer can renew the loan, or the merchandise is forfeited. What’s the problem? Again, it’s the interest and fees, with APRs typically in the triple-digit range once everything is added in. Further, some studies show that only 60 percent of pawners end up reclaiming their merchandise, thus they have essentially sold an item for cents on the dollar, something they wouldn’t otherwise do.

Rent-to-Own – Everyone wants nice things, and if the family is coming over for the holidays, you may be tempted to spruce up your home. A quick trip to the furniture or electronics store could confirm that a new living room set or flat panel TV is out of your price range. Then you notice an ad for similar items with affordable monthly payments. It seems too good to be true, and it is. The problem once again lies in the interest and fees. For instance, if you bought a $200 item and agreed to make weekly payments of $15 for 78 weeks (basically one and one-half years), you’d end up paying $1,170 for that $200 item at an APR of 388 percent. Adding insult to injury, it is likely that you could have purchased the same item at a traditional store for a fraction of the overall cost.

For help managing household debt and/or living within your budget, contact Family Services, Inc.’s Consumer Credit Counseling division, 843.735.7802.

SHOULD YOU BE SHOPPING THIS HOLIDAY SEASON?

Holiday Spending Quiz Helps Consumers Evaluate Their Financial Situation

One in every 10 Americans is currently unemployed. Foreclosure filings were reported on close to one million properties in the third quarter of 2009. Personal savings, if it exists at all, is a fraction of what it should be. Terms on credit cards are rapidly changing, putting some consumers over the financial edge. And the biggest shopping day of the year, Black Friday, has just passed.

“Considering the volatility of the economy, consumers would be well-served to take a hard look at their personal financial situation and evaluate how to best approach the holiday season,” said Michaele Pena, Director of Consumer Credit Counseling Services (CCCS), a division of Family Services, Inc. “Self-inflicted financial pain that could have negative consequences for years to come is a gift to no one.”

Family Services, Inc. suggests that consumers take the following Holiday Spending Quiz to assess their current financial stability before they begin shopping: (answer true or false)

• There are arguments in my home about money.
• I sometimes hide my purchases.
• I have thought about filing for bankruptcy.
• I struggle to make my mortgage payment.
• I sometimes pay my bills late.
• I have used more than 30 percent of my available credit lines.
• My debt interferes with my sleep, job or home life.
• I have little or no savings.
• I am receiving collection calls or notices.
• If I lost my job, it would mean an immediate financial crisis in my life.

The harsh reality is that consumers who answer “True” to two or more of the above are not candidates for a holiday shopping spree. Ignoring the reality of your financial situation will almost certainly lead to further financial distress down the road. It will come in the form of an unmanageable debt load, resulting in a damaged credit report and lower credit score, likely limiting your access to future credit. If there were ever a year to approach holiday spending with your head instead of your heart, this is it.

“Family Services, Inc. supports financial responsibility, regardless of the season,” Pena continued. “With the ghosts of Christmas past still lingering on many credit cards, piling new debt on top of old cannot be considered responsible by any measure. With any sacrifice comes reward, and the benefits of not having a mailbox full of bills in January will likely outweigh any lifestyle spending adjustments consumers make during the holidays.”

If you’re wondering how to deal with holiday spending on a limited budget, reach out for help by contacting the Consumer Credit Counseling Services division of Family Services, Inc. Call 843-735-7802, or go online to www.fsisc.org.

First Time Homebuyers Could Qualify For $3,500 On Top Of $8,000 Federal Tax Credit

Qualified tri-county first time homebuyers could receive $3500 from the Homeownership Resource Center, a division of Family Services, Inc. In addition to the $8,000 Federal Tax Credit already available, that could mean up to $11,500 to first time homebuyers. The additional $3,500 will be given to one qualified person or family at each of the six upcoming First Time Homebuyers Workshops hosted by The Homeownership Resource Center. The Homeownership Resource Center is a non-profit, HUD-approved counseling agency.

The recipient of the $3,500 must attend the free First Time Homebuyers Workshop and close on their first home by November 30th, 2009. November 30th is also the date the current Federal Tax Credit will expire. Other restrictions also apply.

Traditionally, the Homeownership Resource Center loans money to qualified first time homebuyers for the initial cost of closing and their down payment. However, due to new federal banking regulations and an accumulation of funds for public distribution, The Homeownership Resource Center will be giving away this money to six qualified first time homebuyers, regardless of income. One first time homebuyer from each of the six upcoming workshops will be selected.

Available Workshops:
Saturday, September 12th from 10am-4pm
Saturday, September 19th from 10am-4pm
Saturday, September 26th from 10am-4pm
Saturday, October 3rd from 10am-4pm
Saturday, October 10th from 10am-4pm
Saturday, October 17th from 10am-4pm

Location: Trident One Stop, 1930 Hanahan Road, North Charleston, SC

The Homeownership Resource Center’s First Time Homebuyers Workshop was created to educate homebuyers about the homebuying process and what to expect when purchasing a new home. Through the workshop, HUD-certified counselors, with more than 20 years of extensive training and experience, work closely with the homebuyer through every step in an effort to simplify and reduce the stress of the buying process. As a result, the Homeownership Resource Center has helped hundreds of individuals and families achieve their dreams of homeownership.

Some of the many topics that will be discussed at The First Time Homebuyers Workshops include: Mortgage programs, buying HUD properties and foreclosures, home inspections, homeownership insurance, getting the most out of your real estate agents, legal fees, and current market conditions.

Please call 843-735-7862 for more information or visit www.fsisc.org.

IS A CREDIT CARD A MUST FOR COLLEGE STUDENTS?

Family Services, Inc. Offers Alternatives for Building a Credit History

Parents across the country are having the talk with their young adult as he or she heads out the door to college. This year, however, the talk isn’t about sex, drugs and rock and roll. Instead, it’s about whether or not the student should apply for a credit card before the new regulations go into effect in February 2010. The recently passed CARD Act will require a person less than 21 years of age to either document their ability to repay the debt, or have a co-signer before being granted credit.

The new law will also regulate aggressive credit card marketing to college students. In years past, issuers enticed students to apply for cards by making offers of free t-shirts, beach balls, or even chances for an iPod. Some states have already passed laws restricting or regulating credit card marketing on college campuses, and with good reason.

A recent Sallie Mae study revealed that college seniors carried an average credit card debt of $4,100 compared with $2,900 five years ago. College freshmen tripled the amount of debt on their credit cards, going from $373 to $939 over the same date range. Keep in mind that this segment of the population typically has no income and no credit history, but has nonetheless been extended credit.

“We live in a credit-dominated society, with most of us dependent upon credit for major purchases,” said Michaele Pena, Director of Consumer Credit Counseling Services, a division of Family Services, Inc. “Ideally, while in school the student will build a thick credit file, and graduate with a positive credit report and high credit score, allowing them to then realize some of the financial dreams they’d put on hold until graduation. But providing an 18-year-old with little financial training access to a credit card is not only risky, it could be downright disastrous.”

When it comes to building a positive credit record, the student has some options. Family Services, Inc. suggests that parents and young adults consider the following when deciding what would be best for their situation:

• Become an authorized user on the parent’s card. This is a practice known as piggybacking, and is exactly what it sounds like. The student is attached to the parent’s card and has charging privileges, but no legal responsibility for payment since the card is not in his or her name. The activity on the account is reported to the credit bureau in both the parent’s name and the student’s name, thus the young adult builds a credit file of their own. This option allows the parents to monitor the student’s spending, and remove them from the card if things get out of hand.

• Get a secured credit card. This type of credit card requires a cash collateral deposit which then becomes your line of credit, thus limiting any abuse. Consumers need to be very careful when applying for this type of card, as some charge high fees which can greatly diminish your spending power. You can also expect a secured card to have an annual fee and a higher interest rate than an unsecured card. Make sure that the issuer reports to the credit bureau. If they do, and if you pay responsibly, a secured card can not only be a safe way to build a credit file, but after a year or so will likely qualify you for an unsecured card.

• Obtain a card in the student’s name. Since the clock is ticking on the availability of this option, it definitely merits a conversation between the student and the parent. If the young adult has some financial training and experience with credit, and has demonstrated that he or she can handle it responsibly, then having a card in their own name could be a good way to launch their own credit file. Student credit cards typically have low credit lines, thus somewhat limiting the amount of financial damage that can be done. However, an irregular payment history on even a small debt can damage a credit file, which defeats the purpose of having a card.

In addition to lenders, employers and landlords also review credit reports. Therefore, it is important to graduate from college, not only with a sheepskin in hand, but a positive credit file. If you need help evaluating the risks and responsibilities associated with credit, reach out to a trained and certified credit counselor at Family Services, Inc. by calling toll-free to 800-232-6489 or go online to www.fsisc.org.

How To Negotiate With Your Creditors

Consumers Need a Back-up Card

Face it, we live in a credit-dominated society. Most of us can pay cash for our daily living expenses, but when it comes time to make a major purchase such as a house or a car, we need a thick credit file with a long history of responsible payments. Credit is a convenience that keeps us from having to carry large amounts of cash, and also allows us to buy now and pay later. Admittedly, many people have taken that perk to an extreme, but used appropriately, credit can be our friend.

Many consumers are now faced with having their existing lines of credit impacted by changes to the terms of their account. Higher interest rates, lower spending limits, increased minimum monthly payments, or even closed accounts have put many on the financial ropes. For this reason, Family Services, Inc. makes the following recommendations if the terms of your account are altered:

• Ask for an explanation. Everyone deserves to know why the terms of their account were changed, so definitely inquire. Among other things, the creditor may close an account due to inactivity, because you no longer fit their business model, because you’ve become too much of a risk, or you’re no longer profitable.
• Fight to get your previous terms reinstated. If you’ve had a sporadic pay history, are at or near your credit limit, or rarely use the card, you may not have a leg to stand on. However, if you’ve been a good customer, it’s worth it to call the issuer and plead your case, but you must have your financial ducks in a row before picking up the phone.
• Build your case before you call. Know how long you’ve been a customer, the amount you usually charge each month, and underscore your good payment history.
• Prove that you’re worth having. Get your credit report for free from www.annualcreditreport.com. Review it for accuracy. After all, you want to make sure that you and the creditor are seeing the same information. Next, pay the few dollars it costs to get your credit score. If you have a solid credit report and high credit score, you should be just the kind of customer any issuer wants.
• Make them feel secure. Point out that you’re in a field that is not susceptible to layoffs, and that you have a steady income.
• Be prepared to negotiate. Know what you want before you call, and be willing to negotiate if you have to. In other words, if your interest rate has been raised and your credit limit has been lowered, start off asking that both be returned to the previous levels. However, figure out in advance which is more important to you. Do you need a low rate because you carry a balance over from month-to-month, or does a high line of credit matter more to you? If you end up in a stand-off with the creditor, you’ll know where to give.
• Ask for a supervisor. If you’re not getting the answers you want, move up the ladder until you either get what you’re after, or are convinced they are going to stand firm with their decision.
• Inquire about the opt-out clause. If it makes more financial sense to do so, ask to have your account closed, with you continuing to pay the balance under the former terms. This option is often the right one for consumers who have had their interest rate or minimum payment raised to an unmanageable level. If it’s going to be a true financial hardship to meet the new terms, then it’s better to close the account.

“Even though having more plastic can equal more temptation, it might be smart to have a back-up card in case you lose charging privileges on your primary card,” says Michaele Pena of Consumer Credit Counseling Services, a division of Family Services, Inc. “Another card can be a safety net that will keep your access to credit open. Credit can be difficult to obtain, so testing the waters by applying for one more card – not a wallet full - before you actually need it will provide a degree of comfort during these uncertain times.”

For help making sound financial decisions, building a budget you can live with, or assistance digging out of debt, reach out to a trained and certified counselor at Family Services, Inc. To find the location closest to you, call Family Services, Inc. at 843-735-7802, or go online to www.fsisc.org. For counseling in Spanish, dial (800) 682-9832.