Many people have a primary spending personality that may affect how they use money. J. Grady Cash wrote a book entitled Seven Deadly Money Mistakes in which he identifies seven spending personalities. In this newsletter edition, we will feature three of the most common personalities including impulse buying, fanatical hopping, and passive buying. Stay tuned next month when we will discuss more spending personalities.

1. Volume 4 #7
Do You Have a Spending Personality?
FDR Client Reminders • Debt 101
Frugal Organizational Ideas
Inspiring Thoughts • Spare Change
Welcome to the Freedom Debt Relief monthly newsletter! As part of our
ongoing goal to enhance our services, we will be sending you a monthly
newsletter filled with interesting articles and helpful financial tips and
advice. We hope you enjoy this issue, and that you find the enclosed
1-800-655-6303 information helpful as you continue on the road to financial freedom.
effort to find good deals. However, he may need to
Do You Have a consider the time and resources in an attempt to
save just a small amount of money. With gas prices
at record highs, driving around town to find the
Spending lowest price may not always be the best solution.
Fanatical shoppers have a compelling desire to
Personality? control money, perhaps an insecurity that they
will not have money in the future. Therefore, they
see every purchase as a win or lose proposition. If
they do not get the lowest possible price, they feel
M
defeated. The ironic thing about fanatical shopping
any people have a primary spending bothered to browse at the department store, which
is that quality, time, and money are often ignored
personality that may affect how they can easily lead to impulse spending. If she saw
during the quest for the best deal.
use money. J. Grady Cash wrote something that she may want to buy, Ellie should
a book entitled Seven Deadly Money Mistakes in have walked away and thought about the purchase
which he identifies seven spending personalities. for 24 hours.
Passive Buyer
In this newsletter edition, we will feature three of
the most common personalities including impulse Like any spending personality, impulse buying Scenario: Linda does not like to shop, especially
buying, fanatical shopping, and passive buying. exists in people to varying degrees. In severe for major purchases. She needs a new laptop for
Stay tuned next month when we will discuss more situations, impulse buying can become a habit her small business and has limited knowledge of
spending personalities. and a clinical addiction. Impulse buyers enjoy technology. She goes to an electronics store and
Keep in mind that we understand that consumers the instant gratification and the emotional rush a persuasive sales associate convinces her that she
acquire debt for various reasons. We realize that from buying. For most people, impulse buying is a needs a state-of-the-art computer even though she
many times family or medical emergencies can personality that exerts itself more frequently with knows she only needs it for simple tasks such as
create financial circumstances beyond your control. smaller purchases rather than larger purchases. e-mail and word processing. As a result, she will
This article is simply intended to provide some spend $4,000 for her new laptop.
insight on how you may relate to money and
Fanatical Shopper
question certain spending habits. Solutions: Although Linda does
Scenario: Doug prides himself on not know much about computers,
being able to find the lowest price she could have researched
Impulse Buyer in town. Every week, he studies prices online or looked at
Scenario: Ellie goes to the grocery store to buy all of the advertisements in the advertisements to find average
Sunday paper and makes lists of costs for a basic laptop. She
a loaf of bread and a gallon of milk. She leaves
the items he is going to purchase could have also gone to the store with
the store with bags full of food. Her next stop is
at every store. He also cuts out a friend or relative that was more familiar with
the discount department store and she plans on
all of the coupons and spends many hours computers.
purchasing a toy for her niece’s birthday. When she
organizing them. His Sunday routine would
is in the store, she starts browsing through the aisles
include traveling to Store #1 because they Passive buyers can be a salesperson’s dream.
and puts some items in the cart that she thinks are
have toothpaste and juice on sale. The same Some have the potential to be good shoppers,
great deals and absolute necessities. As she is leaving
store also has shampoo on special. But, he but feel they don’t have time or do not place
the store, her jaw drops when she looks at her
plans to go to Store #2 even though he has to a high priority on saving money. They do not
receipt and realizes that she spent nearly $100 on
drive 7 miles out of his way because it is 20 comparison shop and are too embarrassed to
purchases that she did not plan on buying.
cents cheaper when he uses a coupon. ask questions even if they do not understand.
Passive buyers do not want to appear
Solutions: Ellie should have considered sticking
uneducated. This can leave them vulnerable
Solutions: This short scenario indicates
to her list at both stores. Large grocery orders are
to salespeople talking them into expensive
that Doug is certainly concerned about
usually better planned ahead of time instead of
“extras” such as extended warranties.
his finances because he does put forth
buying a lot of food randomly. She should not have
Beyond Your Personality
For years, society never recognized compulsive spending other addictions, compulsive debtors use shopping as a way
as a psychological addiction. In fact, some individuals would to escape from emotional problems and stress in their life.
make jokes about this problem. Many retail stores still sell Similar to Alcoholics Anonymous (AA), a 12-step program
novelty items such as mugs and t-shirts that read, “Born called Debtors Anonymous (DA) exists for individuals who
To Shop,” and “When the going gets tough, the tough go are trying to overcome compulsive spending. If you think you
shopping.” may have a compulsive spending problem, consult a licensed
At this time, most psychological professionals do therapist or visit www.debtorsanonymous.org for more
acknowledge compulsive spending as a disorder. As with information on the organization and meetings in your area.

2. Frugal
Organizing
Ideas
Client Reminders
D
isorganization may cause additional various odds and ends. Refinishing old dressers
Visit us on the web! Did you
stress in your life. It may also can also be a fun and creative project.
know that you can view your account
affect your finances. According
information online? We have recently
Baskets and Boxes: You probably
to the National Association of Professional
enhanced our web site for our clients. Go Organizers (NAPO), it costs an average of $10 have shoe boxes that may be taking up space
to www.freedomdebtrelief.com and click per square foot to store items in your home and in your closet. Consider using them to store
on the tab “Current Clients.” Then, near disorganization may cause “crisis” purchases, documents, small toys, or other loose objects.
the bottom of the page under the heading which involves buying duplicates of misplaced You can also reuse shoe boxes as a gift box by
“Existing Client Login for Account or broken items and last-minute shopping wrapping the bottom and top separately. Baskets
Information” click on the button, “Click at premium prices. If your bills and mail is a are also a good storage solution for many rooms
Here.” Enter your e-mail address, and disorganized pile of paperwork, this could result in the house. Save baskets from gifts that you
then follow the instructions to create a in missed due dates and late fees. may receive or products that you buy. If you can
password and validate your information. Controlling your clutter does not always sew, consider lining the baskets with fabric like
You will now be able to view this have to entail hiring a professional organizer or the expensive sets that are sold in stores.
information online! buying expensive bins and furniture. You may
be able to use containers and objects that you
Discount and dollar stores:
already have in your home if you follow some
Tax Debt? If you owe money to the If you do need to purchase storage or
of the tips listed below. Keep in mind that as
organizational solutions, check out your discount
IRS and would like information on you begin to organize, you will more than likely
and dollar stores first for inexpensive items such
how to reduce your tax debts, please come across things that you no longer use. Try to
as plastic bins and utensil organizers. You may
contact our sister company, Freedom sell them and make extra cash.
also be able to find some interesting containers
Tax Relief at 1-800-455-6TAX. Our tax
and other organizational devices at thrift stores.
attorneys and tax specialists are eager to Is that really trash? Your family may
immediately start helping you resolve throw away many boxes and household items
your tax troubles. In addition, existing each week. Before you toss something, consider
FDR clients are eligible for a $100 referral if it will help organize clutter. For example, you
bonus if they refer someone to Freedom could use empty cereal boxes to make magazine
Tax Relief. holders. (Detailed instructions are listed on this
site: www.allfreecrafts.com/recycling-crafts/
magazine-holder.shtml ). Empty tissue boxes
American Consumers Union
can also be a solution to hold all of those plastic
FDR has a partnership with the
grocery bags. Wash empty glass jars and cans and
American Consumers Union in order to
use them to store a variety of small objects such
provide additional support to our clients
as office supplies, craft beads, nails, or screws.
with respect to creditor harassment.
Kids also can have fun decorating these types
All FDR clients are automatically Some people may say that they do not
of objects. In addition to saving money and
given membership into the American have time to get organized. Below is a
organizing your home, reusing items can also
Consumers Union, and are given the full checklist of some quick organizational goals
help the environment. Using a tin can as a pen
that you can accomplish this week!
use and support of the advocacy group, holder is better on your desk than in a landfill.
at no additional charge. This is a terrific
Put an “outbox” by the door. Family
benefit for our clients and we are happy
Be a multi-tasker! Just because members can put library books and
to be able to provide this service to our video rentals in this box to ensure that
a product is normally used in a kitchen or
clients at our expense. You can visit them bedroom does not mean it can not be used in
and late fees.
online at www.myacu.org. other areas of the home. For example, use ice
cube trays to organize jewelry. Spare trash cans
*** Sort mail immediately. Remember to
can be used as hampers or to store odd-shaped toss junk mail as you receive it. If you
Customer Service Phone No: objects such as rolls of gift wrap. When choosing are still receiving credit card offers, visit
furniture, consider pieces that have multiple www.optoutprescreen.com or call 1-888-
1-800-655-6303 567-8688 to opt out of these mailings.
functions and a lot of storage. Coffee tables
Eliminate unwanted catalogs in your
with drawers or shelves can store magazines,
FAX No: 650-393-6800 mailbox by visiting www.catalogchoice.
books, and remote controls. Dressers can also
org. The Direct Marketing Association
serve many purposes in the home rather than web site (www.the-dma.org) can also
Hours of Operation: the bedroom. If you are starting out, consider help you remove your name from
buying a pre-owned dresser and use it as a TV
Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST general junk mail lists.
stand in the living room. The drawers can hide
Fri: 6:00 a.m. – 5:00 p.m. PST
a lot of the miscellaneous items that may create Search the Internet for various
Sat: 7:00 a.m. – 11:00 a.m. PST organization tips. You can start with
clutter. Dressers can also give you extra storage
www.organizedhome.com, a site that
in the kitchen and serve as a microwave stand.
E-mail: includes helpful articles and a variety of
If you have an old dresser that you no longer
support@freedomdebtrelief.com printable planners and checklists.
use, consider putting it in your garage to store

3. are some tips that may help you reduce some of to cover some of the costs associated with college.
these costs so you will be less likely to succumb Consult the career services division of the college
to the allure of credit. or perhaps your school may offer a work-study
program, in which you can work on campus.
Some colleges and universities may also allow
Create a budget. You may want to create
students to apply work-study earnings toward
a budget and learn to stick to it. Consult your
tuition. Campus employment usually has limits
parents if you need any help. Budgeting is a
on the amount of hours students can work so the
valuable skill that you will use after you complete
job does not affect their studies.
your education. The financial web sites listed
below have budgeting tools and calculators that
Avoid the free gifts. U.S. PIRG reported
cater to young adults and college students.
Money-saving tips that 76% of the study participants claimed
• You Can Deal With It:
on how college that they signed up for a credit card on campus
www.youcandealwithit.com
in order to receive a free gift. These freebies
students can avoid • What’s My Score: usually include inexpensive items such as t-
www.whatsmyscore.org shirts, Frisbees, snacks, mugs, or water bottles.
credit card debt Although it may seem harmless at the time, these
• Truth About Credit (CARE) Program:
“gifts” may cause you to acquire a significant
www.truthaboutcredit.org
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any credit card companies target
amount of debt. In five years, you probably will
college students, especially
no longer have the t-shirt or mug, but you may
Save money on textbooks. The U.S. PIRG
during student orientations at the
have a credit card balance for years to come.
study indicates that 55% of undergraduates use
beginning of the semester. According to a study
credit to purchase textbooks. Campus bookstores
conducted by the U.S. Public Interest Research
Consider credit card alternatives.
usually sell new textbooks at premium prices.
Group Education Fund (U.S. PIRG), 80%
Instead of a traditional credit card, you may
You may consider other alternatives such as
of the survey participants reported that they
consider a prepaid debit card that include
borrowing books or buying used books from
received an average of nearly five solicitations per
various features geared to young adults. Unlike
students that previously took that class. Look for
month. Oddly enough, these students do not
credit cards, they carry no risk of debt or
signs on campus or see if the university supplies
have to meet many requirements in order to get
overdraft fees; cardholders can only spend
a list of classified ads. You may also consult
approved for a credit card. They do not need to
the amount of money prepaid onto the card.
online used book sources such as
have an income or a credit history.
Additionally, prepaid cards offer
www.textbookx.com, www.half.
In recent years, much controversy has
the protection of a credit card and
com, and the textbook section
surrounded the issue of credit cards on college
the opportunity to build credit.
of www.barnesandnoble.com
campuses. Nellie Mae, a national loan servicing
The cards are generally accepted
and www.amazon.com. Also,
organization, reports that nearly half of
wherever credit and debit cards
remember to sell your textbooks
undergraduates carry an average of four credit
can be used. According to Mintel,
at the end of the semester for
cards and a balance of $2,327. Approximately
a consumer research firm, parents
extra cash. If you need software
seven percent of undergraduates are saddled
like the idea of prepaid cards. Three
for a particular class, web sites
with balances that exceed $7,000. A survey also
in five (62%) respondents with
such as www.journeyed.com and
conducted by Nellie Mae indicates that students
children attending or planning
www.gradware.com offer popular
acquire credit card debt by charging education-
to attend college are interested in
software at discounted prices for
related items such as school supplies and
having their children use a prepaid
students.
textbooks along with incidentals such as food,
debit card rather than a credit card.
clothing, and toiletries. Many consumer advocate
Many prepaid cards come with
Get a part-time job. If it
groups are working towards getting legislation
safety features like allowing parents
will fit into your course schedule,
passed to regulate credit cards on campuses. In
to monitor spending or requiring
consider getting a part-time job
the meantime, if you are a college student, below
authorization for online use.
Y
ou have probably heard the saying, While you are “waiting” for all your debts to
“Good things come to those who be settled, below are some tips that may help
wait.” This piece of inspirational advice you now and throughout your financial future.
could relate to your current debt situation. As
much as you would like to, you will probably Don’t give up. There may be times when
not get out of debt overnight. It may require it seems like collectors constantly call and the
several years for all of your debts to be settled. unexpected expenses are endless. Despite these
Although times may seem bleak on some hard times, try to stay strong and keep in mind
days and you feel like your financial goals are that good things come to those who wait.
impossible to achieve, there may be a part of
you that knows you must find the strength to Learn new things. You can also use this
persevere. time to educate yourself on various financial
In our consumer-driven society, it may be issues. Check out budgeting tools and
difficult to think that delayed gratification calculators online. Borrow books from your
brings about good fortune. If you want to make local library on money-related topics.
a purchase, credit card companies want you to
buy it immediately. Why wait when you can Treat yourself. Working towards a debt-
Inspiring Thoughts
have it now? Generous credit lines also allow free lifestyle does not mean you have to deprive
consumers to use credit to cover daily living yourself. When you reach short-term goals
expenses. Establishing a budget does not seem throughout your program, reward yourself.
necessary when you can simply charge a large
With self-discipline most It does not have to be extravagant, just small
order of groceries instead of waiting until pleasures that will encourage you to move
anything is possible. payday. As most of us know, these habits can forward.
~Theodore Roosevelt cause a dangerous cycle of debt.

4. Spare Change: percent), and magazines (15 percent). All of the
coupon acquisition categories have experienced
growth since 2005, however none at the level of
News, financial tips, and other Internet coupons.
information regarding personal
Verification systems may be violating
financial freedom privacy laws. Recently, numerous states have
begun passing laws designed to limit the amount
Internet risks declining, but still remain article on Consumers Reports web site at www. of information which a financial institution may
consumersreports.org.
high. According to a recent survey from solicit from consumers. As a result of these new
Consumer Reports, U.S. consumers lost almost laws, financial institutions are now considering
Many consumers surf for internet
$8.5 billion over the last two years to viruses, abandoning challenge / response authentication
coupons. Internet coupons are of increasing
spyware, and phishing schemes according to systems in order to reduce their liability and
projections from the magazine’s annual State interest to consumers, according to a recent improve their compliance. Challenge / response
of the Net survey featured in the September analysis by consumer and media measurement authentication systems are security systems that
issue. However, Consumer Reports’ survey firm Scarborough Research. Eleven percent of solicit personal information from consumers,
findings produced some hopeful signs that households currently obtain coupons via the usually as part of a login process. As you visit
online security is slowly improving because the Internet, and this has increased 83 percent since various web sites, you may have been asked
chances of becoming a cybervictim continue 2005. However, the Sunday newspaper remains to register and then later answer a challenge
to decline. Consumers have 1 in 6 chance of the number one place for acquiring question, such as “What was the name of your
becoming a cybervictim, down from 1 in 4 in household coupons. Fifty-three childhood friend?” The FDIC and several
2007. Spyware and virus infections have also percent of households consumer groups believe that these types
declined significantly over the past few years. get their coupons from of questions may violate privacy laws.
However, Consumer Reports’ projects that the Sunday newspaper. There are authentication solutions
problems they cause have resulted in damages Other leading places for that meet the regulatory guidelines
of roughly $6.5 billion over the past two years. acquiring coupons include without resorting to soliciting
Consumer Reports also estimates that 3.5 the mail (35 percent of personal information from consumers.
million U.S. households with broadband remain households usually obtain Alternatives include traditional
unprotected by a firewall. Check out Consumer coupons via the mail), in- hardware tokens, software certificates,
Reports September 2008 edition for the article store coupons (33 percent), and virtual tokens. When considering
entitled: 7 Online Blunders. You can learn preferred customer/loyalty cards any authentication solution, the FDIC
which online activity to avoid so you can reduce (22 percent), in-store circulars recommends that financial institutions
your chances of becoming a victim of identity (22 percent), weekday newspapers simply limit the use of personal
theft. For a limited time, you can also read the (17 percent), product packages (17 information.
1875 South Grant Street
Suite 400
San Mateo, CA 94402
Phone: (800) 655-6303
FAX: (650) 897-8800