1. Volume 4 #4
Saving Money on Auto Insurance • FDR Client Reminders
Reading the Fine Print • Inspiring Thoughts
Save Money on Home Improvements • 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.
may be available for student drivers with good
Saving money on grades or college students in the household
that live on campus for most of the year. Your
insurance company may also offer you a multi-
policy discount if you purchase both auto and
homeowners coverage.
C
ar insurance is one of the most liability-only insurance, when the market value
common bills that most households of the vehicle is below $2,000. In the event of an
are required to pay. According to accident, your insurance company will only pay
InsuranceUSA.com, an online insurance what the cash value of the vehicle is at that time.
marketplace, car insurance is the most widely If your car is worth less than your deductible and
purchased type of insurance coverage because your collision premium, you could be paying
automobile drivers are required to have car more for insurance than necessary. Realize that What to do in an accident:
insurance almost everywhere. Below are some having liability-only coverage also means that the
tips that may help you save on this expense. insurance company only pays for the damages Here are some tips provided by Erie Insurance
of the other parties involved if you are at fault. Group (www.erieinsurance.com) to help
Damages for your car will not be covered.
Consider raising your deductible. A you remain calm and gather the necessary
To help you make a decision, visit Kelley Blue information in the event of a car accident.
deductible is the amount of money that you
Book’s web site at www.kbb.com to check the A detailed and accurate report can help you
have to pay out-of-pocket before the insurance
market value of your vehicle. Also, consult your expedite your claim for repair costs.
company pays the claim. According to the web
insurance company before dropping any coverage
site of the Insurance Information Institute
so you are complying with the laws in your state. • The first priority is to make sure your
(www.iii.org), increasing your deductible from
vehicle is safely off the road and check to
$200 to $500 could reduce your collision
Drive safely. Numerous at-fault claims and see if any parties are injured. If so, contact
and comprehensive by 15-30%. Opting for a
emergency personnel immediately.
$1,000 deductible can save you approximately traffic violations may increase your insurance
40%. If you choose to do this, you should have rates. You may help avoid the likelihood of an
• Always call the police even if there is
the deductible on hand if you have a claim. accident by driving defensively and obeying
minor vehicle damage. A police report can
InsuranceUSA.com defines comprehensive as traffic laws. Stay safe by adhering to road signs,
help speed up the claims process.
insurance that “covers damages that are caused driving the speed limit, and resisting the urge
to your vehicle through to talk on a cell phone while
• Although car accidents are stressful
vandalism, natural cause, driving. Many insurance
situations, remain calm and do not
hit and run, or hitting companies offer discounts if a
discuss who is at fault. You will have an
an animal.” Collision policyholder has maintained
opportunity to talk to your insurance
insurance “pertains to a clean driving record for a
agent about the details. Exchange
the coverage you receive specific amount of time.
information with the other driver(s),
for accidents, where you
which would include names, phone
actually collide with or Take advantage of all
numbers, addresses, license plate
hit a vehicle while you discounts. You may qualify
numbers, and the make and model of each
are driving.” for car insurance discounts for
car.
a variety of reasons. Mention
Know the value to your insurance company
• You may also want to record information
of your vehicle. if your vehicle has features
such as date, time, location, and weather
Some drivers choose to such as air bags, anti-lock
conditions. Most cell phones come
drop collision and/or brakes, and anti-theft devices.
equipped with a camera, so consider
comprehensive insurance Keep track of how often
taking picture at the scene. In case of an
once a car depreciates you use your vehicle. If your
accident, Erie recommends keeping a
to a certain value. mileage is lower than average,
disposable camera along with a notepad in
InsuranceUSA.com you may receive a discount.
your glove box.
recommends dropping Younger drivers usually cost
collision; also known as more to insure. Discounts

2. As you strive to settle your debts, most of you have made a commitment to rely on cash instead of
Client Reminders credit cards. After you complete your debt negotiation program, you will probably want to re-establish
your credit. As you probably know, credit cards can cause serious financial problems if they are not used
properly. Periodically, this column will discuss a credit card issue and give you tips on responsible credit
card use. This month’s topic is the importance of the fine print in credit card agreements.
Client Web Site Update
FDR recently upgraded our back office
systems in order to be able to respond
W
hen applying for a credit card, balance on your credit card because of the
more quickly to client requests. You most people disregard the small negative effects of debt and you also run the
may have noticed that our client web type that details the provisions of risk of obtaining an over-the-limit fee. A late
site was down for several days during the agreement. Many applicants will simply sign payment could also allow a credit card company
this transition. It is now back up, and their name, stating that they agree to the terms. to impose a late fee in addition to an over-the-
if you haven’t done so already, you will Although this fine print may be long and tedious limit fee.
need to create a new username and to read, we suggest that you review a credit card Reading the fine print may also alert
password in order to be able to view your agreement in its entirety. This task may prevent consumers to the fact that credit card companies
future problems or you may decide that this is may charge a no-balance fee if you pay off your
account information online. Go to www.
not the right credit card for you. Below are some balance in full or apply an inactivity charge if
freedomdebtrelief.com and click on the
key points that you may want to focus on as you your account has been inactive for a certain
tab “Current Clients.” Then, near the
read the fine print. period of time.
bottom of the page under the heading
Credit card companies also charge fees for
“Existing Client Login for Account
cash advances and balance transfers.
Don’t be fooled by low
Information” click on the button, “Click
teaser rates and extremely
Here.” Enter your e-mail address, and
Understand universal
high credit limits. When
then follow the instructions to create a
default. All of a sudden, an
password and validate your information. you receive a credit card
unsuspecting cardholder
solicitation in the mail,
You will now be able to view this
may receive their monthly
the envelope may
information online!
credit card statement and
read that you are
be shocked to discover
pre-approved for
American Consumers Union that their interest rate
a low interest
We have recently partnered with the increased dramatically.
rate of 2.9%
consumer advocacy group, American This action, known
and a credit limit
Consumers Union, in order to provide as universal default,
up to $25,000.
additional support to our clients with could have occurred for a
This impressive
respect to creditor harassment. All number of reasons. If a credit
offer may persuade
FDR clients are automatically given card company reviews your credit
some people to
membership into the American report and senses that you may
immediately complete and sign
Consumers Union, and are given the full become a potential credit risk, they have
the application without reading the
a right to drastically raise your interest rate.
use and support of the advocacy group, small print.
You may have been late or missed a payment
at no additional charge. This is a terrific First of all, consider most verbiage
with this particular creditor or a totally different
benefit for our clients, and we are happy on envelopes of credit card offers to be
credit card company. Let’s suppose that you are
advertisements intended to entice you to open
to be able to provide this service to our
current with this credit card account, but the
the mail and apply. If you look closely, you may
clients at our expense. You can visit them
card issuer raises your rate because your credit
find that there are several asterisks printed by
online at www.myacu.org.
report shows that you have taken on too much
these grandiose statements. The fine print may
*** debt or have had many recent inquires.
state that you may not be “pre-approved” and
Much controversy has surrounded the issue
that your credit limit and interest rate will be
Customer Service Phone No: of universal default. Many consumer advocates
based on your credit history.
1-800-655-6303 want banks to ban this practice. In 2007,
Citibank was the first credit card company that
Don’t make the credit card companies
put an end to universal default. Also, legislators
richer by incurring fees. Consumer
Hours of Operation: have outlawed this practice in the state of New
Action, a non-profit consumer advocate group,
York last summer. As you can see, progress
Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST reports that credit card fees cost cardholders
is being made and perhaps universal default
approximately $13 billion every year. Avoid late
Fri: 6:00 a.m. – 5:00 p.m. PST will not exist in the future. However, a survey
fees by reading the fine print to find out the
conducted by Consumer Action indicates that
Sat: 7:00 a.m. – 11:00 a.m. PST grace period and due date for your payment.
nearly half of U.S. banks use universal default,
Some companies state that a bill is also due by
enabling them to legally raise credit cardholders’
a certain time on the due date. For example,
interest rates as high as 40%. Reading the fine
E-mail: if your bill is due by noon, you could incur a
print in your credit card agreement will indicate
support@freedomdebtrelief.com late fee if the credit card company receives your
whether your credit card company enforces
payment at the end of the day.
universal default.
We do not recommend that you keep a high

3. M
any people think that if they had Why is this? According to an article by Laura
more money they would be happier. Rowley, author of the book Money & Happiness
You may have thought that if you (2005), “Scientists have found that while a
won the lottery or received a significant pay certain amount of money does indeed make
increase that you would be more content. us happy, once basic needs are met, happiness
More money may allow you to live a more doesn’t continue to rise in direct proportion to
comfortable lifestyle, but it may not necessarily income.” Also, Forbes Magazine indicates that
buy happiness. You may have heard stories on lottery winners return to their previous level of
the news about people who won millions in happiness after five years.
the lottery and were broke within a year. Some As you strive to settle your debts, you may
Inspiring
television programs also feature biographies yearn for more money so you can move past this
about famous people who squander their entire situation. We are not suggesting that your debt
fortune. was incurred due to extravagant purchases. If
Thoughts
These examples may seem extreme, but the you encountered debt as a result of extenuating
same concept may apply when people receive circumstances, additional income would certainly
a raise from their employer. Many individuals come in handy to pay those unexpected bills.
increase their standard of living instead of paying However, spending a lot of time wishing
down debt or creating an emergency fund. we had something else may delay our goal of
Often people attempt to
Once we acquired the amount of money that we financial freedom. If we dwell on the fact that we
live their lives backwards;
thought would make us happier, it does not seem are in debt, this can create unhappiness. We can
they try to have more
to be enough and we want more. At one time, we not change the past and we have to realize that
things, or more money,
may have thought that if we buy a nicer car or there are very few lottery winners. As hard as it
in order to do more of what
charged that new state-of-the-art television that may be, making the most of our current situation
they want, so they will
we would be content. After the novelty wore off, may make us less stressed and give us hope for
be happier.
we may regret the extravagant purchase and feel the future.
~Margaret Young
anything but happy.
efficient products when selecting heating and
cooling systems, windows, insulation, and wall
and roof assemblies. Visit Energy Star’s web site
at www.energystar.com for more information.
You may also contact your utility company
to see if you qualify for the Weatherization
Assistance Program. Sponsored by the U.S.
Department of Energy (DOE), this program
helps low-income families reduce their energy
bills by making their home more energy efficient.
Get Involved. Habitat for Humanity
I Obtain several bids. If you do need to
f you are a homeowner, you probably
realize that your dwelling requires frequent builds new homes and renovates old homes for
hire a professional, obtain bids from various
upkeep and various repairs. As you strive low-income families. This organization is always
companies and contractors. When you compare
to settle your debts, spending money on costly looking for volunteers to help with their building
prices, you may find that costs can vary greatly
home improvements may not be an option. Yet, projects. Each work site is supervised by a
among companies. Before you make a decision
there may be some ways that you can save money professional that trains and assists the volunteers.
based on cost, ask for references on the person or
and still perform necessary upgrades to your You may consider volunteering for your local
business that you plan to hire. Also, verify that
home. Habitat for Humanity branch. In addition to
they have insurance coverage. These precautions
helping your community, you may also learn new
may prevent you from becoming a victim of a
skills that may help you with your own home.
Learn to do-it-yourself. Although home improvement scam.
Visit their web site located at www.habitat.org
you may have to hire a professional for some
for more information and to search for a local
complicated projects, you may be able to tackle
division in your area.
some tasks yourself. A wealth of informational
When possible,
resources exist to teach you how to do home
•••
invest in energy-efficient products for your
improvement jobs such as cleaning your
Many homeowners have the desire to beautify
home. Some of these items will be more costly
gutters, painting, and installing a ceiling fan.
their surroundings. At this point in your debt
than their counterparts, but you may save
Visit your local bookstore or library to find a
settlement program, you may not be able to
approximately
comprehensive guide on do-it-yourself home
finance every project
one third
improvements.
on your list. Keep
on your
The Internet and television are also great
in mind that you
energy bills,
sources. DIY Network brings you such cable
do not have to
according to
shows as “DIY to the Rescue” and “DIY Be
complete every home
Energy Star,
Your Own Contractor.” You can also visit their
improvement job at
a government
information-packed web site located at www.
once. Choose the
backed agency
diynet.com. This site features a wide array of do-
necessary things first
that offers
it-yourself projects, with topics that range from
and finish each task
consumers
home improvements to decorating.
as your budget allows.
energy-
Home Depot also offers free Do-It-Herself
Good luck on your
efficient
Workshops, Weekly Clinics, and Kids
home improvement
solutions.
Workshops. Visit www.homedepotclinics.com to
endeavors and enjoy
Look for
register at a Home Depot near you.
the end results.
energy-

4. using automated dialers to call cell phone grew from 3% in 2006 to 40% in 2007. Here are
numbers. Automated dialers are standard in the some other interesting findings in the report:
industry, so most telemarketers are barred from
• California and Illinois are among five states
calling consumers on their cell phones without
whose residents are most at risk for identity
their consent.
fraud.
Consumers feel that the • Young adults who fall victim to fraud are
most likely to purchase ID fraud insurance
economic stimulus package
and sign up for fraud alerts. Older adults
is a temporary solution. An who fall victim often react by no longer
Experian Consumer Direct poll shows that more
sending bill payments and checks through
than half of Americans feel the federal economic
unsecured mailboxes.
stimulus package is a short-term solution for the
spare change troubled economy, while 32% feel the package • Over the past three years, overall fraud
will cause more Americans to reinvest in the declined, while the cost per consumer
economy. When asked how consumers plan to rose. This cost is defined by the total
use their rebate check from the federal economic out-of-pocket expense consumers incur
stimulus package, 19% said they would pay off a when falling victim to ID fraud. The cost
debt, 16% said they would pay utility bills, and per consumer in 2007 averaged $691, an
10% said they would apply the proceeds toward increase of 25%, over the $554 recorded in
home repairs. 2006.
You do not have to register New research confirms identity Haggling may help you
your cell phone number. fraud is declining. The 2008 save money. A national study by
According to the Federal Trade Identity Fraud Survey Report, released by Consumer Reports reveals that haggling
Commission (FTC), consumers should not Javelin Strategy & Research (www.javelinstrategy. over the cost of goods and services is not only
be concerned that their cell phone numbers com), confirms that identity fraud is declining in alive and well, but can be successful in many
will be released to telemarketers in the near most parts of the United States, and that thieves cases. More than 90% of shoppers who tried
future despite the recent claims made in e- are turning to unexpected channels to commit to negotiate a better deal on goods and services
mails circulating on the Internet. It is also not fraud. This year’s report reinforces a three-year including furniture, electronics and appliances,
necessary to register cell phone numbers on the trend that criminals mostly obtain the majority floor and demonstration models, and medical
National Do Not Call (DNC) Registry to be of information from stolen personal belongings, bills got one, according to a new survey
protected from most telemarketing calls to cell and through telephone calls, rather than online. conducted by the Consumer Reports National
phones. Federal Communications Commission Access through mail and telephone transactions Research Center.
(FCC) regulations prohibit telemarketers from
1875 South Grant Street
Suite 400
San Mateo, CA 94402
Phone: (800) 655-6303
FAX: (650) 897-8800