The Freedom From Debt Blog

In these difficult and rapidly changing economic times, it is more important than ever for us to keep up with new laws and developments that effect our personal finances.  Recently, there has been a flurry of these types of developments.  Here are just a few of things you will want to keep your eye on to make sure you stay in the best possible financial shape.

Last Tuesday, February 17th,  The American Recovery and Reinvestment Act (often referred to as the second “stimulus bill” was signed into law.  The complex act has numerous provisions, and many of the specifics have yet to be announced or determined.  While the majority of the provisions will only effect consumers indirectly, some will have a direct and immediate impact on your wallet.

The act will provide a tax credit to most workers and wage earners.  Those who earn less than $75,000 (or $150,000 for married couples filing jointly) will see a credit of up to $400 ($800 for married couples).  Rather than receive another stimulus check, you should start to see a little more money in each of your regular paychecks.

The stimulus plan also calls for tax credits for first time homebuyers of up to $8,000.  This new credit will not have to be repaid unless you move out of the new home within 3 years.

Lower Credit Limits, Lower Credit Scores

As times get harder for many consumers, it seems that some credit card companies are only making it harder.  Many consumers are seeing their credit limits suddenly cut, not only reducing their available credit but dropping their credit scores as well.

If you are seeing your credit limits being dropped, find out what you can do to get help.

Debt Settlement Scams?

While so many consumers are searching for help, it seems that, unfortunately, many people are looking to profit off of their need for help.  Most of you have probably noticed a sharp increase in advertisements for debt settlement and “debt reduction” services.  Most of these ads make these services seem like the perfect, too good to be true solution.

The truth is, most of the time these promises ARE too good to be true.  If you are considering debt settlement, be sure to do your research.  Check out the drawbacks of debt settlement, and be sure to closely research any company  you work with and be on the look out for reviews of debt settlement companies.

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