As temperatures drop in the upcoming months, it may be tempting to spend more money on goods and services to keep warm. The tips listed below may help you brave the cold weather climates and ‘freeze’ some dollars for spring.

1. Volume 4 #9
Warm Up for Winter
Tips to Overcome Common Financial Hurdles
Inspiring Thoughts • Banks Reduce Credit Limits
FDR Client Reminders • 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
1-800-655-6303 advice. We hope you enjoy this issue, and that you find the enclosed
information helpful as you continue on the road to financial freedom.
Warm up
Agriculture about freezing food safely located
at www.fsis.usda.gov/Fact_Sheets/Focus_On_
Freezing/index.asp. The web site for Allrecipes.
for com also has a budget cooking section. You can
find recipes for many tasty fall foods in addition
to articles that discuss the pros and cons of bulk
winter foods and meals for under $10. Visit the home
page at www.allrecipes.com and then click on the
“Budget Cooking” tab at the top of the page.
A
s temperatures drop in the upcoming to turning up the heat a few degrees. Children
months, it may be tempting to spend can be especially expensive to clothe since they Driving can be
more money on goods and services to outgrow items so fast. Instead of buying all new hazardous in freezing temperatures. According
keep warm. The tips listed below may help you items for kids, check out thrift stores and resale to the Car Care Council, 70% of drivers do
brave the cold weather climates and ‘freeze’ some shops such as Once Upon a Child (www.ouac. not winterize their vehicles. Ensure that your
dollars for spring. com). Browse your local online classifieds such vehicle is prepared for inclement weather so you
as www.craigslist.org and www.freecycle.org and can protect your investment. First of all, make
The Alliance look for ads in which people list bags of clothing sure you have essentials such as an ice scraper
to Save Energy (www.ase.org), a non-profit in a specific size. Some retail stores may also have and windshield wiper fluid. Once snowstorms
coalition that supports energy efficiency, predicts a few racks of summer clearance left. You may hit your area, many stores may run out of these
that natural gas and home energy costs will be be able to find practical items such as t-shirts items. Some other necessities to keep in your
20% more this year than in 2007. You may and tank tops that can be used as additional car in case you are stranded include jumper
reduce your bill with simple tasks such as turning layers of clothing throughout the winter. Many cables, a snow shovel, rock salt, blankets, and a
down your thermostat when you are not home communities also sponsor winter coat drives for flashlight. When temperatures drop, tires lose
and closing vents and doors to unused rooms. families in need during this time of the year. Visit pressure. Tires affect ride, handling, traction, and
Keep curtains open on sunny winter days to www.onewarmcoat.org for events and programs safety. Also, check your antifreeze and motor oil.
heat up a room. When the sun sets, snug-fitting in your area. You can consult your owner’s manual or your
drapes may also block cold drafts. Ceiling fans repair shop for specifications. Cold weather can
can also help circulate heat during the winter Snowy also affect the life of windshield
months. Poor insulation can also play a factor winter days can make it difficult wipers by making the rubber hard
in skyrocketing heating bills. According to the to drive to the grocery store. and brittle. Wiper blades that
Harvard University School of Public Health, During the fall season, you may are cracked or torn and do not
there are 46 million under-insulated homes consider stocking up on foods such properly clean your windshield
in the United States. For more information as canned soups, which usually should be changed. Freezing
on insulating your home, check out www. make inexpensive and hearty temperatures will also reduce a
simplyinsulate.com and visit www.energystar. meals. Campbell’s web site (www. vehicle’s battery power. It is critical
gov/index.cfm?c=diy.diy_index for Energy Star’s rethinksoup.com) lists many recipes to keep battery connections clean,
Do-It-Yourself Guide to Sealing and Insulating. that use their condensed soup and tightened, and free of corrosion.
The web sites listed in the box at the end of this even estimates the cost per serving. For more tips on general car care
article also give some general tips on reducing For example, the approximate and winterizing your vehicle,
your heating bill. cost per serving of Campbell’s visit www.carcare.org. During
Condensed Tomato Soup is 23 the winter months, avoid making
Warm clothing cents. You can also prepare food unnecessary driving trips. You will
is essential during fall and winter months. ahead of time and then freeze it save money on gasoline and lessen
Wearing an extra layer of clothing inside of the to eat on those chilly days. Read the online fact your chances of an accident due to hazardous
house can be a frugal alternative as opposed sheet from the United States Department of weather conditions.
Helpful Web Sites With Tips to Keep You Warm
U.S. Department of Energy (www.energysavers. is a non-profit organization dedicated to advancing
gov): This section of the U.S. Department of energy efficiency. You can find information about
Energy web site offers consumer tips on saving tax incentives for making your home more energy-
energy. Discover simple no-cost and low cost tips efficient and download a checklist with energy
to winterize your home and you can also find more saving tips.
information about energy assistance programs in
ENERGYguide (www.energyguide.com): In addition
your state.
to providing information on how to lower your energy
ACEEE (www.aceee.org/Consumer/index.htm): The bills, this site also offers a lot of online tools to
American Council for an Energy-Efficient Economy calculate your energy usage.

2. a lot of bills and paperwork. Carefully review
Tips to Overcome all items such as doctor and hospital bills along
with insurance claim payments/denials. Mistakes
do happen and uncorrected errors can be costly.
Common If you can not afford your medical or hospital
charges, contact the service provider’s billing
department to set up a monthly payment plan.
Financial Hurdles Be sure to save bills, cancelled checks, or other
receipts for your tax preparer because you may
be eligible for the Health Coverage Tax Credit.
D
Do a keyword search at www.irs.gov for HCTC.
uring the course of your life, you will are eligible to receive unemployment benefits, If you are uninsured and have a serious health
probably experience some sort of which may temporarily replace a portion of lost condition that makes it difficult to buy standard
unexpected incident or emergency. wages. The web site for the Department of Labor health insurance plans, you may want to find
Below are some common situations that may has a section that lists all of the unemployment out if your state has a risk pool. This type of
drastically change a person’s financial situation. offices by state. Visit www.dol.gov/dol/location. insurance usually can not deny you due to most
We would like to offer you some basic tips that htm for more information. This site also includes pre-existing conditions. For more information,
may help reduce the impact on your finances. state job centers and employment outlooks for visit www.nahu.org/consumer/HRPGuide.cfm.
Please note that the intent of this article is to give particular fields. During this time, try to keep
an overview of general information. We realize spending under control so you can continue to A family member passes away. Coping with
that everyone may have their own complex set pay necessary bills the next three to six months. the loss of a loved one will undoubtedly take an
of circumstances that may require additional If possible, avoid withdrawing or borrowing emotional toll on family members. During this
resources. money from your retirement savings. difficult time, most families will struggle with
the unbelievable shock and grief of the situation.
A divorce occurs. Divorce laws can be You can’t make your mortgage payment. If Therefore, finances and money will not be at the
complicated and may differ by state. You may you are having difficulty paying your mortgage, forefront of someone that recently lost a loved
choose to seek the advice of an attorney that you should contact your loan servicer and find one. This will be a time that family members
specializes in this field. Search for a divorce out if you qualify for modified loan terms or can band together to support one another in
attorney in your area at www.familylawsoftware. other options to help you keep your home accomplishing some of the following necessary
com. Under the section labeled “For Individuals instead of losing it to foreclosure. You may also tasks.
Facing Divorce,” click on the “Find Professionals want to seek help from a trained homeownership • Locate important documents, such as
in Our Directory” link. This site sells divorce- counselor. To find a reputable counselor, insurance policies and the most recent will.
related software, but also offers valuable contact the Homeowner’s HOPE Hotline at
• Before committing to any funeral
information about the divorce process. You can the Homeownership Preservation Foundation
costs, consult with other family
also check out the “Divorce Guide---A World (1-888-995-4673 or www.995hope.org)
members and perhaps a lawyer
of Help” link located under the “For Individuals or the U.S. Department of Housing
about any prior instructions or
Facing Divorce” column for a variety of helpful and Urban Development for a
arrangements.
information and calculators. A certified divorce referral to a HUD-approved
planner (CDP) may also be able to assist you. homeownership counseling • Obtain multiple copies of the death
This professional is a financial planner that has agency (1-800-569-4287 certificate, which will be needed to
completed additional training and education or www.hud.gov/offices/hsg/ apply for death benefits (such as life
related to the financial issues of divorce. If you sfh/hcc/hcs.cfm). insurance policies or Social Security)
wish to hire a CDP, visit the web site of the and to access bank accounts.
You or a family member
Institute for Certified Divorce Planners at www.
• If the family’s medical insurance
experiences a medical
institutedfa.com.
is through the deceased person’s
emergency. In addition to
employer, consider options for
A family member loses their job. If there dealing with a medical illness,
continuing coverage.
is a loss of income in the household, see if you your household will also receive
into debt and considered it to be a big mistake. family illness or job loss, recognize that almost
Dwelling on the past will not solve your current everyone experiences setbacks at least once
problems. Remember that if nobody ever made a during the course of their life. In the midst of
mistake, society would not grow and prosper. an unfortunate circumstance, you did what
It’s true…everyone does make mistakes. you needed to do in order to survive. Once you
However, you can learn from them and deal with complete your settlement program, you may
the results of your mistakes in a constructive consider starting an emergency fund in case an
and effective way. In order to learn a valuable unanticipated event should ever occur again.
lesson, you must keep experimenting with Regardless of the reasons for your debt, realize
new approaches to your dilemmas instead of that enrolling in a debt settlement program is
repeating the same mistakes. For example, if you one way to rectify your economic situation.
acquired debt due to overspending, use this time Commend yourself for taking this positive step
to educate yourself on responsible credit card use. towards improving your finances. Although you
The man who makes no mistakes does When it comes time to re-establish your credit, may be currently faced with overwhelming debt,
not usually make anything. you will know not to make the same mistakes you have decided to take action. In the end,
~Edward Phelps again. Putting yourself down or becoming angry you may become a stronger person because you
E
and bitter will not help your current situation. learned from your mistakes.
veryone makes mistakes. You probably On the other hand, if your debt was the
have heard this phrase at some point in result of an unforeseen circumstance such as a
your life. In fact, you may regret getting

3. Credit Commentary
Banks reduce
credit limits Client Reminders
R
Visit us on the web! Did you
ecent news indicates that credit card a recent Bankrate article, many lenders are also
know that you can view your account
companies may be reducing credit lowering credit limits for non-traditional reasons
information online? We have recently
limits on consumer accounts in such as whether the consumer has a sub-prime
enhanced our web site for our clients. Go
response to the troubling economy. Consumer mortgage or if they live in a state that has been
to www.freedomdebtrelief.com and click
Action, a non-profit consumer advocacy adversely affected by the housing crisis.
on the tab “Current Clients.” Then, near
organization, conducted a study this past
Why now? Any individual or family the bottom of the page under the heading
summer entitled, “Consumer Action’s Credit
Limit Survey. According to this survey, 18% of “Existing Client Login for Account
that has experienced a crisis situation may have
the 1,083 participants revealed that their credit Information” click on the button, “Click
discovered that difficult times sometimes inspire
limits had been lowered by their banks this year. positive changes and bring families closer. Here.” Enter your e-mail address, and
Consumers that plan to apply for new loans or As mentioned previously, the credit industry then follow the instructions to create a
credit may also face more stringent guidelines. A implemented stricter policies regarding credit password and validate your information.
July 2008 Federal Reserve Board survey indicates limits as a result of the crippling economy. You will now be able to view this
that 65% of domestic banks had tightened their But, what happens if the nation’s financial information online!
lending standards on credit card loans during the circumstances improve in the future? Will card
previous three months. issuers resort to their former lenient lending
Tax Debt? If you owe money to the
practices? Only time will tell.
IRS and would like information on
Is this good news? For years, many Statistics cited in this article suggest that credit
how to reduce your tax debts, please
credit card companies have enticed consumers card companies are carefully assessing the risk
contact our sister company, Freedom
to spend by increasing credit limits and charging and creditworthiness of cardholders and potential
Tax Relief at 1-800-455-6TAX. Our tax
a relatively low minimum applicants. Regardless of the
monthly payment. The state of the economy, it is easy attorneys and tax specialists are eager to
convenience of credit to wonder why credit card immediately start helping you resolve
cards have allowed some companies would not have your tax troubles. In addition, existing
consumers to charge luxury more stringent underwriting FDR clients are eligible for a $100 referral
items they would not standards for applicants such
bonus if they refer someone to Freedom
normally buy with cash, as college students. Most
Tax Relief.
cover emergency expenses, undergraduates do not need
or pay for necessities a job or verifiable income to
***
such as groceries or gas apply for a credit card.
Customer Service Phone No:
during tough economic
1-800-655-6303
How does this affect me? You
times. Shrinking credit lines could be viewed
as a positive step in the right direction as many may have limited access to credit while you are
consumers may be required to live below their enrolled in a debt negotiation program. When it
FAX No: 650-393-6800
means. comes times to re-establish your credit, consider
Credit card companies also seem more applying for one or two credit cards with low
prudent in making credit decisions. According limits. High credit lines should not really be Hours of Operation:
to Consumer Action’s 2008 Credit Card Survey, that much of a concern to you because it is
customer service representatives at six well-known Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST
wise to charge only what you can afford to pay
financial institutions told surveyors that they Fri: 6:00 a.m. – 5:00 p.m. PST
in full each month. If you notice that a credit
would reduce cardholder’s credit limits because Sat: 7:00 a.m. – 11:00 a.m. PST
card company increases your limit due to timely
of perceived customer risk. Factors included a payments, resist the urge to use plastic for
decline in cardholder credit scores, late payments, extravagant purchases. Overspending
E-mail:
and balances that go too close to the credit limit. with credit can easily spiral out
support@freedomdebtrelief.com
This practice is not necessarily new considering of control and cause a
that some credit card agreements have a universal dangerous cycle
default clause, allowing companies to raise of debt.
interest rates or reduce credit lines if information
We want
contained in a consumer credit report
suggests a possible credit risk.
However, according to
Invest in your lunch. your ideas!
Ordering take-out and dining out with coworkers may be a strain
on your budget. Check out Bankrate’s Lunch Savings Calculator
What do you want to see in the
and discover how much money you can save each month by
packing your lunch. Visit www.bankrate.com/brm/calculators/ newsletter? We welcome your input.
calc_index.asp. and click on the “Lunch savings calculator” under
Email your ideas to info@pifff.org.
the Savings section.

4. collection contact involving an accusation of a
Spare Change crime or similar conduct is strictly forbidden by
law. Consumers also reported that this agency
threatened to sue them if they did not pay.
Because this particular collection agency employs
News, financial tips, and
no lawyers and does not file lawsuits of any kind,
other information regarding these threats were misleading and therefore,
personal financial freedom unlawful.
Con artists pose as FTC
Buying used cars can save to freeze the bank accounts of New Yorkers
employees. In their latest effort to defraud
who receive income that is exempt from debt
thousands. A recent Consumer Reports
collection under federal and state law, such as the public, con artists claiming to work for the
study of owner costs shows that choosing a
Social Security, veterans’ benefits, disability, and Federal Trade Commission are calling consumers
reliable three-year-old car instead of a new one
pension. The law ensures the first $2,500 in and claiming that they have won a lottery or
can save drivers thousands of dollars over the
an account which contains directly deposited sweepstakes. As the nation’s consumer protection
first five years. In many cases, that is enough
exempt income cannot be restrained. agency, the FTC never collects money directly
to pay for all the gas used during that time.
from consumers. But the public may be fooled,
With relatively low mileage, modern safety and
Charges are filed against Florida because by using Internet technology, con
convenience features, and usually a much lower
collection agency. West Virginia Attorney artists can make it appear that they are calling
price than similar new vehicles, late-model used
from Washington, DC, where the FTC is
General Darrell McGraw recently filed suit
cars are great deals. On average, Consumer
headquartered. The FTC’s name may even be
against Florida collection agency for unlawful,
Reports’ findings show that consumers can save
displayed on consumers’ caller ID machines.
coercive debt collection practices. Beginning
32 percent in the first five years by buying a
All the public has to do, according to the con
in 2006, consumers complained that they had
three-year-old car. Similarly, with a one or two-
artists’ pitch, is pay the taxes and insurance on
received calls from this agency suggesting
year-old car, they can save 19 and 27 percent,
their “winnings.” The caller asks that consumers
they would be arrested if they
respectively.
wire money or send a check for an
did not pay a cellular telephone
amount between $1,000 and $10,000.
New law will assist New York bill. According to the lawsuit,
In reality, there is no prize, and the
this agency tried to coerce
consumers. The Exempt Income Protection
scammers disappear with the consumers’
payments from consumers by
Act will shield elderly, disabled, veteran, and
money. Real sweepstakes don’t require
implying that a “federal marshal”
lower income New Yorkers from unlawful
you to send money to claim a prize. To
would appear at the consumer’s
practices by debt collectors and goes into effect
learn more about avoiding this type of
workplace, or that a deputy
January 1, 2009. The new law closes a loophole
scam, go to www.ftc.gov/bcp/edu/pubs/
sheriff would serve a warrant for
that has allowed debt collectors and credit
consumer/alerts/alt099.shtm.
the consumer’s arrest. Any debt
card companies to use “restraining notices”
The Freedom Debt Relief newsletter is published by The Premier Institute for Financial Freedom. While articles in this newsletter are factual and accurate, they are not intended to replace the advice of professional financial,
accounting, and/or legal advisers. As with all decisions regarding your finances, the advice, techniques, ideas and suggestions offered herein should be followed under the supervision of the appropriate competent professional.
1875 South Grant Street
Suite 400
San Mateo, CA 94402
Phone: (800) 655-6303
FAX: (650) 897-8800