A higher credit score can help you qualify for better interest rates and other terms from lenders, saving you thousands of dollars on an auto loan, home mortgage, credit card interest, or any other type of financing. Investing the savings — which can add up to hundreds of thousands of dollars — can result in close to $1 million over a lifetime.

FICO scores range from 300 to 850. Getting a perfect credit score may be extremely difficult, but there’s really not much of a difference between getting a 780 or 800+ credit score. A score of 780 or more will get you the same interest rates as someone with a perfect score.

To get into the 800+ credit score club, you’ll have to follow some of the best credit habits for a long time. Here are five ways to get into the elite club:

Pay Your Bills on Time – All of Them

Paying your bills on time can improve your credit score and get you closer to an 800+ credit score. It’s common knowledge that not paying bills can hurt your credit score, but paying them late can eventually hurt also.

“I think a lot of people don’t really understand that there isn’t a bill that’s really too small,” says Thomas Nitzsche, a certified credit counselor and financial educator with ClearPoint Credit Counseling Solutions, and the owner of an 800+ credit score.

If a bill goes unpaid long enough and the debt is sold to a third-party collection agency, that will be reported to credit bureaus, Nitzsche says. But being late can lead to fourth-level reporting parties, such as online searches, that credit bureaus can become aware of.

From late utility bill payments to magazine subscriptions or even $10 medical co-pays that people don’t think are important enough to pay on time, all bills should be paid on time.

“Any bill I get is treated as a serious situation,” he says.

Payment history counts for 35% of a credit score, says Katie Ross, education and development manager for American Consumer Credit Counseling, a national financial education nonprofit group.

Don’t Hit Your Credit Limit

If you want to get into the 800+ credit score club, be sure that you don’t use your credit card up to its full limit. Use no more than one-third of your credit limit if you don’t want to hurt your credit score, Nitzsche says.

For example, if your credit card has a limit of $9,000, don’t have a balance of more than $3,000.

Ideally, credit card utilization should be 10% or less. Jennifer Martin, a business coach, says she has a credit score of around 825, and that she tries to keep her spending to no more than 10% of a credit card’s available credit.

Outstanding debt accounts for 30% of a credit score, Ross says.

“If you are overextended and close to your credit limit this indicates overextension and you need to work at getting your credit card balances well below the limits,” she says.

Only Spend What You Can Afford

Don’t use a credit card to live beyond your means, or to roll over the costs of everyday expenses to the next month, Nitzsche recommends. This will only lead to spiraling debt that will be difficult to get out of.

People with an 800+ credit score don’t apply for more credit than they can afford and don’t spend more than they earn.

While using a credit card for everyday expenses is OK if you can pay the credit card bill off in full each month while gaining awards points in the process, don’t let the accumulation of points convince you to spend more, Nitzsche says. And if you’re running to your credit card when your car, refrigerator, or something else breaks down, start an emergency fund to pay for such repairs.

Bill Balderaz, president of Fathom Healthcare, has an excellent credit score and attributes it to his family living below their means. “As our income rises, we keep our spending flat,” Balderaz says.

They also pay off all credit card bills each month, pay off their vehicle loans early, and have paid off their mortgage early to help get them to an 800+ credit score.

Their excellent credit score has allowed them to get the most preferred loan rate. After three houses and eight vehicles, Balderaz estimates they’ve saved tens of thousands of dollars on loans by getting the lowest loan rates.

Don’t Apply for Every Credit Card

Too many credit inquiries in a short period of time can hurt your credit score. This can be difficult to avoid during Christmas when it seems that every department store is offering you a discount for signing up for its credit card.

Applying for new credit card accounts can account for 10% of your credit score, which isn’t a huge number, but it can be enough to push you into the 800+ credit score club.

Holly Wolf, who with her husband has a credit score in the 800 range and is a chief marketing officer at Conestoga Bank, says she doesn’t open a lot of credit cards and often closes cards she may have opened to get a store discount.

“Honestly, this isn’t a lifestyle to which most folks aspire,” Wolf says. “They need to have a ‘nice car’ a ‘big house’ and all the accouterments of prosperity over having a high credit score. Living debt-free or with as little debt as possible has enabled us to save for retirement, get the best rates on loans, and be prepared for unexpected expenses when they arise.”

Have a Credit History

You not only want a good record of paying your bills and credit cards on time, but you also want a long history of doing so. The older your credit accounts are, the better your credit score will be. You want to have credit accounts that have been open for 10 years or more.

Length of credit history accounts for 15% of a credit score, and closing old accounts can affect your credit score, Ross says.

What an 800+ Credit Score Can Mean

The advantages of having an 800+ credit score are huge. Ilene Davis, a certified financial planner with an 800+ credit score, says she did a calculation on the mortgage payments for a $300,000 home loan for various FICO scores.

If the difference between payments for borrowers with the highest and lowest credit scores were invested at 6% a year, at the end of a 30-year mortgage the borrower with the highest credit score would have accumulated around $750,000. That’s a chunk of money worth improving your credit score for.

Feeling overwhelmed or like you are drowning in credit card debt? ACCC’s Debt Management Plan may be your answer!

Our Debt Management Plan will help you consolidate your unsecured debt into one monthly payment and restructure your payments to make it more affordable.

A Debt Management Plan:

• Is designed to fit your budget
• Will reduce your interest rate on most credit card accounts
• Will reduce or eliminate the penalty fees

Are you still not sure if a Debt Management Program is right for you?  See what others are saying. 

This program has changed our lives. We are so thankful for the opportunity to have help in taking control of our debt. Excellent customer service, convenient hours, friendly representatives! Fantastic Debt Management Program that has made a huge difference in our financial stability. Thank you!

– Marianne F from UT

 I wasn’t sure how I could handle my debt without getting a higher-paying job (not an easy option), and I felt so much relief after entering the program.

– Katherine M of NC

 I felt like (ACCC) listened to my particular situation and definitely reduced interest rates and the accumulation of fees relating to those interest rates.

– Joseph K of OR

 ACCC took me from feeling like my debt was impossible to tackle to manageable, step-by-step.  I was initially embarrassed to have so much debt and didn’t want to call on anyone for help.  I assumed people would judge me for having so much debt and that it was my fault for letting it get out of control.  But, from the minute I called ACCC, they put me at ease, told me it’s doable, and most importantly did not judge me or make me feel ashamed of my situation.

– Palak R of NJ

Your company has drastically improved our awareness of money management and budgeting.  The payments have helped save our dependence on creditors as well as our peace of mind!

– Amelia C of OH

The testimonials provided herein are unsolicited comments from clients, based upon their individual needs, concerns, and circumstances. These comments are provided for informational purposes only and should not be construed as a guarantee of similar results or experiences, as each individual’s circumstances will vary. Client comments are included for informational purposes only.

The amount of time between filing taxes and receiving a return depends on the filing method. Paper filing can take up to 6-8 weeks, especially if you file on the April 15^th deadline.  Alternatively, E-filing can take up to 21 days and allows users to check the status of their refund online by visiting www.irs.gov and submitting their social security number, filing status, and refund amount.

“Regardless of how Americans plan to file this year, we encourage consumers to take advantage of the time between filing taxes and receiving their refund,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “This time period provides the perfect opportunity to plan ahead, think about how to spend your refund, and work towards financial stability.”

The tax season began over six weeks ago and the IRS has paid out more than 48 million refunds, totaling $147 billion. Between January 31 and February 28, those Americans who received a refund earned $3,034 on average back from the IRS, marking a 3 percent increase compared to the same period last year.

For those consumers who still need to file their taxes, or for those who are waiting for their taxes to be processed, there are considerations to make while anticipating a tax refund.

1. Review outstanding expenses such as unpaid bills and prioritize them. Of those Americans expecting a refund, 21 percent will use it to pay off outstanding debt according to a recent TD Ameritrade survey. For example, if you are behind on rent or mortgage payments, these should be the first priority you address. Next, list utilities and any expenses that may cause a disruption in service or that may jeopardize your livelihood, such as car expenses that would keep you from getting to and from work. While all of your debt obligations are important, consider the consequences of default and weigh those against your priority list.
2. Caught up on all of your monthly bills? Use this refund as a stepping stone for future goals. 61 percent of consumers receiving a refund plan to save or invest the money, especially those members of Generation Y with 67 percent planning to sock away their refund. Start a savings account, pay down some of your outstanding credit cards, contribute to a 401k, or pay off a few of your future monthly expenses like car insurance or child care payments. Additionally, it may be in your best interest to use the refund to set up an emergency account. Whatever option you choose, make sure it supports your future goals and needs. This is an opportunity to get ahead and set your priorities for the remainder of the year.
3. Use this time to look at your W-2 status and ensure you are maximizing refund opportunities. This is especially important if you end up having to pay taxes or your tax refund is declining.  Job and salary changes can impact your deductions and if any of these have occurred, this is a chance to review and make adjustments.

“Tax refunds provide consumers with an opportunity to take a step in the right direction and should be used to maximize their financial positioning,” said Trumble. “Whether you ultimately choose to pay down debt or save for the future, a little consideration will serve you well in the long run. Additionally, consumers can always seek the help of experienced professionals to receive financial counseling and advice.”

ACCC’s certified and experienced counselors offer a variety of financial education, counseling, and debt management services to help consumers achieve long-term financial health and stability. These financial education programs enable consumers to better understand and manage their finances.

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management and debt relief through education, credit counseling, and debt management solutions. In order to help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loans, homeownership, identity theft,  senior living and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources, log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

Lending money to family or friends can be a touchy subject, especially if you’ve opened your heart and your wallet only to have both trampled on. Yet people make loans to loved ones all the time. In fact, Boston-based American Consumer Credit Counseling reports that 82 percent of Americans would lend money to a family member in need; 66 percent would do the same for a friend.

If so many are willing to provide financial assistance to family, why shouldn’t you?

According to Ruthann Driscoll, a director of advanced planning at Northwestern Mutual, there are plenty of reasons. “Loaning money is never simple, but when you lend to family or friends, it also has the potential to destroy a treasured relationship, especially when the money isn’t repaid.”

That’s why Driscoll recommends taking the following precautions to help ensure that if and when you decide to share your money, it’s the right thing for your loved one—and for you.

1. Decide whether you truly can afford to help.

One of the biggest mistakes people make is saying ‘yes’ to a loan without thinking it through. “Before you lend money, consider what other uses you have planned for that cash,” says Driscoll. “If you intend to lend extra savings you won’t need for a while, making a loan may not impact you. But if you use funds earmarked for emergencies or other important goals, such as upcoming home repairs or funding retirement, you could be putting your own financial security in jeopardy, especially if the loan isn’t repaid.”

2. Get your spouse’s or partner’s thumbs-up.

If you’re married or in a relationship where you’re sharing a bank account, make sure that person is on board with helping your family member financially. “Lending money to a relative not only can strain your cash reserves; if you’re not upfront about your plans, it can strain your marriage, too,” says Driscoll.

3. Lend only what you can afford to lose.

Lending money to friends or family is a gamble, so don’t use cash you absolutely need back. “It can help to answer the request with the mindset that you’ll never see the money again,” explains Driscoll. “If you put the family relationship first and treat the loan as a gift, then you don’t have to worry about nagging the person for repayment. You also will be pleasantly surprised if the money is actually repaid.”

4. Put it in writing.

If you decide to lend money, spell out the details in a written agreement—and then have it signed and notarized. Seriously. Even if it’s “just” for your mom or favorite cousin. “Your written agreement should specify the terms of the loan, including a timeline for repaying the loan, a schedule for making weekly or monthly payments, and what happens if the loan goes unpaid,” recommends Driscoll. “Having this in writing can help you avoid misunderstandings later on.” Additionally, a written promissory note can avoid family disagreements after death. Often, a debtor-child may “forget” that the received amounts were loans and not gifts. A written agreement will allow the beneficiaries to equalize the inheritance by offsetting the amount due and owing against the debtor-child’s share.

5. Charge interest, says Uncle Sam.

If you’re making a loan and aren’t planning on charging interest, you may want to reconsider. Any interest you waive can be considered a gift to the debtor by the Internal Revenue Service (IRS) and subject to tax if that amount plus any other gifts you made to that same person exceed $14,000 (in 2014). Additionally, the IRS will impute interest to you. In other words, the IRS requires you to treat some of the money as interest—which is taxed as ordinary income—whether you receive it or not. To avoid running afoul of imputed interest rules, Driscoll recommends you charge at least the minimum interest rate set by the IRS (the Applicable Federal Rate), which is published monthly.

6. Be creative.

Just because a loved one asks you for money, it doesn’t mean you need to give it. There are other things you can do to help, according to Driscoll. “For example, if a nephew asks for help paying off his credit card debt, try teaching him how to make a budget instead. It won’t get him out of financial hot water today, but showing him how to better manage his money will give him the skills he needs to avoid it in the future.”

7. Learn to say no.

It can be difficult to turn down a request for money. After all, you love your family and care about their welfare. But don’t let feelings of guilt cloud your judgment. Instead, “make a policy for lending money and then stick to it. That way you won’t be caught in a situation where you feel cornered,” says Driscoll. “To avoid awkwardness, have a plan for what to say in response to a request; maybe something like: ‘I’m sorry you’re going through a tough time, but I’m not in a position to help.’”

Should you lend money to a friend or relative in a financial crisis? Only you know the answer to this important question. Whatever you decide, the key is to be gentle, sympathetic and clear in your response. If you say ‘yes,’ you’ve set the stage for a good understanding of what the loan entails. If you say ‘no,’ you can help defuse what is likely to be an emotionally charged issue. But either way, you’ll be able to rest easy knowing that you haven’t done something to jeopardize an important relationship.

“Both retailers and consumers benefit from Black Friday and Cyber Monday deals,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “While the holidays are an exciting time, consumers need to have a plan of action and be cognizant of bad deals. It is just as important that they make a budget and commit to it – even in the face of attractive deals.”

The National Retail Federation predicts that holiday sales will reach $630.5 billion, a 3.7 percent increase from last year. Online sales are expected to increase anywhere between six and eight percent. Almost half of consumers – 46 percent – said that they will do majority of their holiday shopping online, which is up from last year’s 44 percent.

ACCC shares a plan of attack for consumers on how to be financially savvy this Black Friday and Cyber Monday:

1. Be prepared and plan ahead – Know what you want and exactly how you will get it. Do your research before heading to the stores. Study advertisements and compare prices at several different stores to ensure you are getting the best deal.
2. Make a budget and stick with it – Resist impulse buying by deciding exactly how much money you plan to spend during Black Friday and Cyber Monday.
3. Check store policies – Be aware of the return and exchange policy at the stores you choose to shop at. Some stores will only offer store credit or will charge a restocking fee for each returned item.
4. Research the product – Make sure you check the reviews for each product. Check expert sites as well as consumer reviews before you buy the item. Just because it seems like a good deal does not make it a good product. Don’t fall victim to buying something just because it’s cheap.
5. Get an early start – Many stores offer early bird specials or extra discounts to the first customers in line. Do your research and find out when the store near you will open and get there a couple hours before to secure a good spot upfront. Many sale items also have limited quantities.
6. Use a credit card – Use a credit card over a debit card whenever possible, especially on Cyber Monday. A fraudulent charge on a credit card can be an annoyance, but you are protected. A fraudulent charge on a debit card gives cyber criminals direct access to your bank account.
7. Choose a different password – Do not open yourself up to potential risk by reusing passwords on shopping sites and matching them to passwords you use on bank or social media sites.
8. Verify security of website – Before purchasing online and entering any credit card information verify that the website is secure. Look for an HTTPS in the URL. This means all communication between your browser and the website are encrypted.  HTTPS is often used to protect highly confidential online transactions like online shopping and banking.

ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling, call 866-826-6924
• For housing counseling, call 866-826-7180
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management and debt relief through education, credit counseling, and debt management solutions. ACCC provides individuals with practical debt solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC’s certified credit advisors work with consumers to help them determine the best plan of action to get out of debt  and regain financial stability. ACCC holds an A+ rating with the Better Business Bureau and is a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources, log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

“With the holiday season seemingly becoming shorter each year, it is easy for consumers to become overwhelmed and fall into spending traps, especially when last-minute shopping,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “Fortunately, we have established criteria of common mistakes that lead to over-spending that will benefit the consumer who takes note.”

1. Not Setting a Budget – Create a shopping list and budget to stay on track. It’s helpful to make a list of everyone you have to buy for with possible gift ideas and spending limits. We also suggest getting gift ideas to avoid buying something that is not wanted or needed.
2. Not Planning for the ‘Little Things’ – Holiday cards, postage, party gifts, holiday tipping, shipping, travel, décor, high utility bills (lights) etc. add up! According to National Retail Federation, Americans will spend upwards of $170 this year on decorations, cards, candy, and other items easily forgotten on a budget.
3. Going Overboard on “Bargains” – Just because something is a good deal doesn’t mean it’s a good deal for you. With so many discounts this season, it’s easy to fall into the trap of buying something simply because it’s on sale. You may wind up spending more than you intended by purchasing items that weren’t part of your gift ideas or budget.
4. Relying Strictly on Credit Cards – Research shows that people spend more when they pay with cards. Paying with cash allows you to truly see the money disappear from your pocket. A cash-only spending plan may help you control your spending and save money this holiday season.
5. Failing to Protect Your Cards during the Holiday Rush – Pay attention to how many credit cards you are carrying. Report a missing card immediately, keep your cards close to your body, and watch out for snoopers with smartphone cameras when you scan your card or type in your pin number. Also be sure to check your account regularly for suspicious charges – even online in between statements.
6. Not Keeping Receipts – Many retailers will honor the sale price if you made the purchase within a few weeks and refund you the difference. You’ll also want to have receipts on hand if any other items need to be returned or exchanged.
7. Shopping While Anxious/Tired/Last Minute – Your decision-making skills and good judgment go out the window when you’re exhausted, stressed, or feel particularly rushed. This can lead to unnecessary spending. The amount of money that is spent the week before the actual holiday is really what puts most people under water with their finances.
8. Spending to Impress/ Over Gifting – Whether you’re a young person starting a new career and feel compelled to prove your success or you’re trying to “keep up with the Joneses”, before you make a purchase ask yourself if it’s something the person will really use. If not, then don’t break your budget or go crazy trying to pull it off.
9. Gift Guilt – Don’t let gift guilt put you into debt. You don’t necessarily have to spend the same amount of money on very person on your list.

American Consumer Credit Counseling’s certified and experienced counselors offer various financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.

ACCC’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability. These financial education programs help consumers to better understand and manage their finances. ACCC’s holiday spending poll is the first in a series of planned monthly polls related to budgeting and spending habits, intended to help consumers recognize their budgeting needs. ACCC plans to post these polls and the results on their website and Facebook page.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

“The start of a new year provides consumers with the unique opportunity to set new goals or recommit to old ones, and this is especially true when it comes to finances,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “Unfortunately, many consumers wait until the last minute, which may result in poor planning and missed opportunities to kick off the New Year right.”

ACCC offers these smart and easy tips on five things to do with your money before 2015:

Research Benefits:

The start of a new year is often accompanied by a renewal or new enrollment into employer benefits, including retirement savings accounts, healthcare reimbursement, and wellness savings.Be sure to enroll in an employer sponsored 401k if available and, if you are already enrolled, look for ways to increase your weekly contributions, especially if your employer matches your contributions. Does your company provide a health or transportation reimbursement program? What about a flex-spending account to cover co-pays and other medical expenses? Dedicating money to these can save you hundreds over the course of the year, and the best part is that they are pre-taxed dollars. Meet with your HR department to walk through any company benefits that you may not be taking advantage of.

Be Pre-Emptive:

Think now about your budget for the coming year so that on day one, you can start an emergency fund for ‘just in case’; you never know when you are going to be impacted by an unexpected event like a job loss or medical expense.  The best way to plan for this is to review your monthly expenses and develop a plan to save for at least 6-9 months of expenses. This can be one of the most challenging goals to obtain, but it is also one that you will not regret if a financial disaster strikes.

Check Your Credit:

Given that, according to a FTC study, one in five consumers had an error on at least one of their three credit reports, and five percent of those with errors endured less favorable terms for loans, this is a must-do for all consumers. Remember that every consumer is entitled to one free credit report per year from each of the credit reporting agencies. We recommend www.AnnualCreditReport.com to get your free copy of your credit report. Once received, review to ensure the accuracy and if there is any erroneous information work with the credit reporting agencies to get this corrected.

Pay off What You Can in 2014:

Reviewing your credit report also provides the opportunity to review your outstanding debts and develop a plan to get any of your credit cards paid off.  There are different methods of paying down/off your debt and it’s a personal choice; the Debt Avalanche or the Debt Snowball methods, for example. The avalanche method suggests you put more money towards the account with the highest interest rate, and then make minimum payments on any other accounts. Once paid in full, apply more funds to the next highest interest rate, and so on. The snowball method approach is when you disregard interest rates and pay off the debt with the smallest balance first and so on.

Budget:

The best way to organize your finances and paint a clear picture of your financial situation is to get it all down on paper or a spreadsheet. Identify your total monthly income and expenses. Break it down into categories so you know how much you are spending in each area (rent, utilities, car payment, groceries, dining out, cell phone bill, clothes shopping, etc.). If you don’t know how much you’re spending, then track yourself for a month or two. Once you can identify how much you spend on everything, you can identify areas to cut back. This will also help you find more money to apply towards your debts, or add to your savings.

American Consumer Credit Counseling’s certified and experienced counselors offer various financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.

ACCC’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability. These financial education programs help consumers to better understand and manage their finances. ACCC’s holiday spending poll is the first in a series of planned monthly polls related to budgeting and spending habits, intended to help consumers recognize their budgeting needs. ACCC plans to post these polls and the results on their website and Facebook page.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

In 2014, 69 percent of those polled by American Consumer Credit Counseling indicated that they had used their tax refund to pay down debt and get ahead on monthly expenses, including rent, utilities and car payments. In 2013, 26 percent indicated they would put their refund into savings, while 45 percent said they would use it to pay down credit card debt. The National Retail Federation saw that 46 percent of its 2014 survey respondents intended to cushion their emergency savings with their returns, with nearly six in 10 young adults between 18 and 24 putting their refunds into savings.

The results of these surveys are indicative of a growing, budget-friendly and money-savvy trend: Americans are opting out of tax-time splurging and are focusing on getting ahead. Here are a few easy ways to get yourself set up for success as tax season approaches:

• Take advantage of a Volunteer Income Tax Assistance (VITA) program. VITA programs offer free tax help to those who generally make $53,000 or less, persons with disabilities, the elderly and limited English speakers. Qualified individuals can receive basic income tax return preparation assistance from IRS-certified volunteers.
• Use Form 8888 to split your refund. Why rack up more debt on your credit card in an emergency when you can set aside savings to cover it interest-free? The IRS provides taxpayers with multiple avenues to receive and save their refunds. Take advantage of direct deposit to your checking account to pay off debts and automatically deposit a portion of your refund to your savings account.
• Need more inspiration to save? Enter to win with SaveYourRefund.com. SaveYourRefund has 101 cash prizes, including 100 weekly prizes of $100 and one grand prize of $25,000.
• Take the America Saves pledge to make a commitment to yourself to save. Get emails to keep yourself motivated and/or sign up for text message reminders to get tips and advice about your savings goals.

We know that making smart financial decisions isn’t always easy. So whether you’re just starting to look at ways to get ahead in 2015 or are already planning to put your refund towards your goals, remember that your tax refund doesn’t have to go to one place. When you get your hard-earned money back, put a piece of it toward paying down debts and save some for a rainy day. It really is that easy.

The trouble with Band-Aid fixes is that they sometimes lead to further bleeding and can make your problem much worse. You may feel it’s worth the risk, but it’s still helpful to think through the possible consequences. So in the interest of being aware of potential problems ahead, here are five common Band-Aid fixes to carefully consider before applying.

401(k) loans.

It’s easy to see why some people borrow from their 401(k) if they’re facing a cash shortage or need a cash infusion for, say, a down payment on a home.

“These loans are offered by many corporate-sponsored 401(k) plans at fairly low rates,” says Pam Friedman, a certified financial planner and partner at Silicon Hills Wealth Management in Austin, Texas. She adds that you can generally borrow up to 50 percent of your vested balance or sometimes up to a maximum amount, and these loans let consumers pay themselves back over five years.

“The employee pays the interest to him or herself, which makes 401(k) loans very attractive to employees,” Friedman says.

Why this may not be a good short-term fix: There’s a lot to like about this type of loan, but before you get too excited, Friedman says, “There is a hitch. Actually, more than one.”

She says if you leave the company for another job, the loan you could have taken five years to repay typically needs to be paid back within 60 days or the remaining balance will be considered a withdrawal.

What’s so bad about that? “For most workers, that means the remaining loan balance will be taxed as ordinary income of the employee’s and assessed a 10 percent penalty,” Friedman says.

She adds that even if you repay your 401(k) loan on time, you may reduce your contributions in the meantime, which hurts your retirement savings. “That’s an expensive loan,” she says.

Deferring loan payments.

In this case, you contact your lender and ask permission to stop payments for a period. It’s frequently done with student loans but can also apply to car payments and even mortgages.

Why this may not be a good short-term fix: With student loans, the interest will typically still pile up and be added to the principal, which will stretch the length of your loan.

Your auto lender will usually attach the deferred monthly payment to the end of the loan, so when you reach that point and you’re ready for the loan to be paid off, you may well regret the decision – especially if you deferred multiple payments throughout the life of the loan.

With mortgages, it’s harder to get a deferral. But if you manage to get one and you’re still making monthly private mortgage insurance payments, you will likely prolong the amount of time you’re making those PMI payments, possibly by a couple years.

Payday loans.

If you have a family to feed and next to nothing in your bank account, a payday loan may seem tempting. Payday loan centers aren’t concerned with your credit – they will ask for proof of employment, residency and references. Assuming you pass muster, they’ll give you cold, hard cash.

Why this may not be a good short-term fix: If you think it’s tough getting by on no cash now, wait until you have to pay back the loan. “Unless you have a solid plan to repay this kind of loan quickly, it’s most likely only going to worsen your debt situation,” says Katie Ross, education and development manager at American Consumer Credit Counseling, a financial education nonprofit based in Auburndale, Massachusetts.

According to the Consumer Financial Protection Bureau, the median payday loan amount is $350. The larger your paycheck, the better your odds of paying back the loan, unless you simply have too many bills to be paid. But if your paycheck isn’t much more than what you’re borrowing, you can see where the trouble starts. You may get stuck, constantly taking out loans to pay back the payday lender.

Borrowing from friends and family.

This can be a great idea for you and your creditor, who gets paid. And as Ross says, “A good friend of family member is likely to offer very favorable conditions when lending money.”

Why this may not be a good short-term fix: It’s not such a great deal for your friend or family member. If you can repay the loan in short order, it may strengthen your bonds. But what if you can’t? You may not lose money in the long run, but you may still pay a high price.

“Entering a financial agreement with a friend or family member can put a significant strain on the relationship,” Ross says.

Overdrawing your account.

This often isn’t done on purpose, but some consumers likely overdraw their bank account knowing that while they’ll be hit with a fee, at least they’ve made the electric company happy by paying their bill. Other consumers may find themselves playing a cat-and-mouse game with their bank account, hoping they won’t be overdrawn but betting on the fact that transactions sometimes take days to post.

Why this isn’t a good short-term fix: This short-term fix often leads consumers to take out loans, defer payments and borrow from friends and family.

According to the CFPB, the median bank overdraft fee is $34. Rack up a few of those every month, and the amount of money you’re forking over starts to look obscene. If you’re really having trouble managing your money, the best fix is to contact your creditor and explain your situation, says Jay Sidhu, CEO of BankMobile, a division of Customers Bank, headquartered in Phoenixville, Pennsylvania.

“Nine times out of 10, they will be empathetic to your issues and grant you the grace period you are looking for with no penalties or cost to you,” Sidhu says. Based on his 20-plus years in banking, he says first-time offenders generally get a break. However, “make sure you don’t make this a habit,” he cautions.

But what if relying on short-term fixes to solve your money problems is becoming a habit? The diagnosis isn’t pretty, and you may need far more than bandages. You may need the equivalent of a doctor or a hospital – a new budget, a new job and a new way of thinking about money.

“Americans appreciate convenience and a good perk, especially around the holidays when many retailers boast added savings with store credit cards,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “However, the convenience and in-store savings of using plastic for purchases always comes at a price. Come 2015, many consumers may be feeling the effects of a holiday shopping debt hangover.”

ACCC takes into consideration why it might just be better to pay with cash, and save those credit cards this holiday season:

No matter what you buy with a credit card, you will always end up with a balance. Regardless of how little or how much you spend, there are minimum payments that must be made on credit cards for any purchase made. With interest rates at a high, you can be paying $15 dollars for every $100 you spend or more. If you were to make this purchase with cash, you save 15 percent on your purchase. The only other way to avoid the interest is to pay off the balance in full.

Additionally, if you pay with cash, there are no hidden fees. Credit card statements make it look like you only have to pay the minimum amount, when in reality, by making a minimum payment, you pay more money over a significantly longer period of time. Take for instance a consumer who puts a $1,000 balance on the average retail credit card with an APR of 23.3 percent. If only minimum payments are made, that consumer would need 73 months to pay off the balance and would incur $840 in interest fees.

Often times when people apply for credit cards, they aren’t sure of what they’re getting into. People carelessly look over contracts and all of a sudden become bogged down with fees and get tricked by gimmicks. Make sure you fully understand what the terms of the contract are. Is there an introductory rate that will increase after a period of time? Can you immediately pay off the balance? What are the annual fees? And remember, your credit score is impacted. When opening up a store card on the spot, you still have to be approved. This results in a hard inquiry on your credit report. These are all questions and considerations that should be answered before signing on the dotted line.

When you’re swiping a piece of plastic, you cannot tangibly feel money leaving your pocket and actually see it disappearing. If you take out $100 in cash, and at the end of the day it’s gone, you are more likely to be aware of how much you are spending and be more mindful of it.

You are also less likely to be targeted by marketers that ask for additional information when you swipe your card, like a zip code or email address. You’re more secure this way, as you do not want to get information stolen in a data breach.

“There are certain situations that require the use of a credit card, and in the end, the most important thing to do in managing your money is to make sure to keep track of your funds and be financially aware,” said Trumble.

If you are considering committing to a cash only holiday, American Consumer Credit Counseling has provided the following tips:

1. Set a holiday budget and consider everything you would spend during the holidays including wrapping paper, tape, decorations, parties, etc.
2. Set a gift limit depending on your cash only holiday budget.
3. Don’t buy gifts just to buy; get a list of potential gifts and purchase according to your gift limit.
4. Shop around and look for the best deals that will meet your cash only gift limit.
5. Purchase one gift at a time if that works best for you.  It may take longer to get your shopping completed, but at least you are staying within your budget and not using credit.

American Consumer Credit Counseling, a nonprofit organization dedicated to helping consumers achieve financial health through education, counseling, and debt management, offers free financial workshops on topics ranging from budgeting to credit to identity theft.

ACCC’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability. These financial education programs help consumers to better understand and manage their finances. ACCC’s holiday spending poll is the first in a series of planned monthly polls related to budgeting and spending habits, intended to help consumers recognize their budgeting needs. ACCC plans to post these polls and the results on their website and Facebook page.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com. Follow ACCC on twitter @TalkCentsBlog.

“Retirement saving is a huge source of stress for many Americans” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “It’s a top priority and a real challenge to make sure that, after paying off bills and debt, you will have enough money to live a comfortable life when you stop working. A lot of men and women underestimate how much is necessary to get by.”

ACCC provides some information on how to make sure to set yourself up for a comfortable retirement, even in a tough economic climate.

• Set goals for yourself. Try to be smart and predict your expenses and your needs. There are many financial calculators online that can help you predict what your goals should be.
• As you make more money, raise your retirement savings. The more you have, the more you should save. Set up automatic transfers into your savings from your checking. This is the best way to start saving for retirement.
• Check your retirement plan at your work place. 401k plans include many benefits including a direct deposit from your pay check. Like automatic transfers from your savings to your checking, this is another way to automate the saving process. Some plans include matching funds. Check with your employer, and if you do not have an employer-sponsored plan, you can set up an Individual Retirement Account (IRA) which also has tax advantages.
• Start saving as much as you can, as early as possible. Monthly savings, no matter how small or large, over decades, will add up regardless of what the monthly value is.
• Keep your retirement account intact. If possible, do not tap into your account early. During hard times, it might be tempting to dip into your retirement funds, but it will be damaging over time. Doing so completely throws away all the hard work that you have done to save. It also takes away from any investments you could make. Stocks have a high chance of long-term growth. Early withdrawal also comes with a penalty and a tax bill on the money you take it. The short-term is not worth the cost and most likely, even if you say you will replenish the fund, it’s all too easy not to.
• Be wary of bonds. Over 10 to 15 years, inflation detracts from the money value of bond interest payments.
• If necessary, work part time. If it’s before retirement, you may only need to work an additional job for a brief time. Working part-time during retirement will not only add to your savings, but will allow you to remain socially engaged.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com. Follow ACCC on twitter @TalkCentsBlog.