June 13, 2008
Volume 1 Issue 4
www.cleancreditqueen.com

Welcome Valerie

Happy Friday the 13th!
There is only one Friday the 13th this year so those of you that suffer from  paraskavedekatriaphobia should be safe for the rest of 2008! (But brace yourselves, there are 3 Friday the 13ths in 2009...)

Coming events:

I have been asked to work with Virginia Commerce Bank and a local Womens Shelter to provide a shortened version of my Credit Essentials course later this month. After that I will be holding off on giving workshops, except for special requests, for the summer but plan to start them up again in September.

I will be taking that time to further develop my Seniors workshops; one for high school students, one for college students, and one for the over 55 crowd.

I have added Query the Queen to my website to answer those questions that come up most frequently. Be sure to check my website periodically for new posts. All queries will be posted to the Archives section.

What is your level of Personal Financial Literacy?

From: Jump$tart Coalition News Release  April 9, 2008

How smart are you about financial matters? How about
your children?  According to  recent a study done by The Saint Paul Foundation's Credit Card Project, while more than half of the parents surveyed think they are giving their children a good financial education, only 30% of the teens felt they had gotten a good financial foundation from their parents.

In the Jump$tart Coalition's biennial survey, funded by the Merrill Lynch Foundation, high school seniors correctly answered 48.3% of the 31 questions.  Unfortunately, this was a decline from the 2006 results. This year, for the first time, Jump$tart also conducted a college survey. The college freshmen answered 59% correctly while the seniors answered a record 65% correctly. Merrill Lynch is calling for "early and and sustained investment in financial education" especially in this time of economic uncertainty.

Early intervention is the key.

Does your teen have a credit card? Do they budget their money? Do you have discussions with them about the family finances? It is never too early to start. If you listened to the interview I did with Lynnette Khalfani you heard her tell about her youngest who isn't even in school yet but still knows the difference between saving and spending.

How well do you think you or your children would do on the Jump$tart test? I have managed to get a copy of it eventhough the survey is over. Go to my website for the survey link and find out! The answers are at the end  - but don't peak until you give it a try!

Email me at linda@cleancreditqueen.com, I'd love to hear how you all do.

Credit Card Insurance- Is It Worth It?

By Linda Adams, Clean Credit Queen

Most recently I have been bombarded with offers from various credit card issuers for insurance programs that are "free" for the first thirty days, but you have to sign up right then. 

Disability Insurance - I have heard both sides on this issue and it may or may not be something you want to consider depending upon who you work for. The disability insurance will pay minimum payments on your credit card if you are ill or unable to work for at least 30 days. (Check your policy offer for details.) If you keep a low balance-to-limit ratio this insurance might not be a bad idea. If however, you are running close to your credit limit, since the insurance only pays the minimum payments, that plus the charge for this insurance coupled with the accrued interest may cause you to go over your credit limit incurring even more costs and causing credit issues - which is what you were trying to avoid in the first place. This type of insurance might be alright if you think layoff or disability is a real threat in your life but on the average, the industry pulls in millions and most consumers never use the insurance. On the other side of the coin, all insurance is a gamble, you bet you need it and the insurance companies bet you don't.

Life Insurance - If you don't take any of the other insurance that is offered, you might want to at least consider this one; depending on the balances you carry.  If you should die, the insurance will cover the balance on your bill as long as it's up to date and not over your credit limit.  Without insurance, your creditors will attach a lien to your estate that will have to be paid before your survivors receive any of their inheritance money. As always, check with your financial professionals before signing up for any program that impacts your financial future.

Tips to Help You Get Out of Debt

From: Lakeview Selections

Frustrated by mounting debt? All of the advice I have seen is pretty much the same. However, the following set of tips is the most comprehensive list I could find. Hopefully it will help you or someone you know get a handle on their debt and start moving in the right direction.

1. Keep a positive attitude that you will be debt free.

2. Take action and get started.

3. Make a list of what you want to accomplish while paying off your debt. Post that list of goals and periodically see what you have already accomplished. Don't forget to look forward to what goals you will reach next.

4. Make a budget including any miscellaneous expenses that don't fall into major categories. You want to keep track of all of your expenses to see where your money is going so that you can cut expenses.

5. Save money. Try to find as many ways as you can to save as much money as possible.

6. Only purchase items you really need. Ask yourself if it is an impulse or a need. If it is not a necessity, then do not buy it.

7. Don't spend money you don't have. If you do have the cash to pay for an item, think about whether that cash would be better used towards a debt or towards the purchase.

8. Remember to ask yourself if you can "use, re-use or repair" an item before replacing it with a new one.

9. Make extra payments. Every extra dollar paid will make your balance that much less. You'll be closer to your goal of getting out of debt!

10.  Don't add more debt. If you are looking to get a loan for consolidating your debt, make sure that you put your cards away (don't close them - remember that impacts your score negatively). Keep that credit card debt gone forever.