DID YOU KNOW…The Tax Lien Options: Withdraw OR Release ?

May 10, 2013

44 The fact remains and it’s a given,   IRS isn’t going to remove or release the lien until it has been satisfied (paid) or has become unenforceable under the law.

With that being said, this leaves you with two options to make sure that the lien is either withdrawn or it is released.

A Federal Tax Lien RELEASED:     Under 26 U.S. Code Section 6502  the statute of limitations is generally 10 years on a federal tax lien.   What this means to you is that usually..your tax lien will be released automatically after 10 years.

However,  IF…you need your credit report to look better BEFORE the ten years is up, then once again you have two options:  1) Satisfy the lien by either paying the amount in full OR..2)  make an attempt to settle the amount due with IRS with  an Offer In Compromise.

As you can guess there are no guarantees in dealing with IRS, therefore an OFFER In Compromise doesn’t  mean  you will reach a settlement. Because it is an ‘offer’, you may still be held responsible for the full amount, of course, depending upon your circumstances.

 IF…your Offer In Compromise is accepted, this will not affect the amount you owe on the tax lien.  It does mean you will have the opportunity to make what would be perceived as affordable payments until the amount agreed upon has been paid in full.   When IRS is satisfied, meaning all fees related to the release have been paid, then the lien can be released.

A Federal Tax Lien WITHDRAW:    This option offers a big foot in the door to you.  At this time, IRS, the NOTICE of a tax  lien can be withdrawn, meaning it will no longer be seen in your credit report, IF  your tax lien is under the following circumstances:

  1. The notice was filed too soon or not according to procedure;
  2. You entered an installment agreement to pay the debt on the notice of lien;
  3. Withdrawal will speed the collection of the tax; or
  4. Withdrawal would be in the best interest of both you and the government. (Source: http://www.irs.gov)

What # 4 basically means is IF.. you are placed into a position or circumstance that your tax lien is preventing you from making a transaction that would enable you to pay the lien, it could be withdrawn to allow you to make the transaction and, in turn, pay the debt.  

Of course, we all know IRS does not make any process easy, however, if funds become available to you making it possible to settle your tax lien, you may have a chance of getting the lien withdrawn or released.  You can then proceed in attempting to remove it from your credit report with the normal dispute process.

Remember there always options, even when dealing with IRS.  Now, there is a process to remove this public record that is extremely damaging to your credit file, and your lifestyle .   The basic requirement is you have entered into an installment agreement to pay the debt on the notice of lien.  

Normally a tax lien is seen in a credit report until it is satisfied or paid.   You now may have an opportunity to remove this damaging data from your credit history by following the current and correct procedures that satisfy both IRS and the credit reporting agencies.   By educating yourself of your options, you can proceed to build a credit report reflective of your current lifestyle.

PLEASE leave your comments and questions below.  Please come back to learn more, share this site with others and please… visit our home site:  www.SpectrumResources.org to learn more about what we have to offer in financial literacy.

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Posted by SRDC 2012

“Did You Know…Plastic Could Make You Fat ?”

April 16, 2013

plastic-makes-u-fat Of course, you know I am referencing the impact of plastic on your debt load…not your body weight.   

If you use plastic in an ill-advised way such as buying groceries, and/or eating out at a restaurant, then yes,  it could be plastic is expanding  both your waist line and your debt load at the same time.

I’m not sure what a dietitian would say, but here is what I have to say as your personal credit risk assessment planner, “Neither is good for your health !”  Well, for those who know me, read on, for  there is always more to this lesson.

 I haven’t seen any commercials that state as a disclaimer pertaining to the side effects  when becoming fat from the overuse of your plastic !  From many years experience as a debt counselor I can tell you few people  think about the many different ways plastic can have an ill effect on them personally .

An expanding debt load can cause expanding  mental anguish that turns into costly depression.  Depression can cause loss of work / income,  more doctor visits and more costly prescriptions.    It’s a vicious cycle, especially to those who attempt to make expanding debt go away by eating themselves into an even more unhealthier state.  

Sadly, we all partake in some very unhealthy habits without thinking of the full ramifications of their actions.  Debt addiction can cause serious life style management problems such as job loss.   Secure jobs can be lost by having too much debt, you become a security risk. ( Employers can check your credit report – they don’t see your scores)   Unemployment does wonders in reducing your waistline, however, it expands your debt load.

When your plastic allows you to purchase things that gives the impression that you are ‘financially comfortable’  you become a target to con artist and thieves, a health hazard in today’s economy that is becoming more and more real.

 A bulging credit card bill coming in the mail box creates anxiety, marital stress, sleepless nights, and blisters on the finger tips from dialing the phone numbers of E-Z loan providers.   That in its self leads to a migraine headache  mere aspirin can’t even touch.

Our ego is always happy when we receive notice our credit limit has been raised.   Few remember this stamp of approval from the very same people who make money off of your uncontrolled spending habits.    

In a board game we might get a ‘Get Out of Jail FREE’ card, however in real life when we continue spending without heeding the warnings of the game rules regarding utilization, there is no magical ‘Get Out Of Debt FREE’ card available.

Plastic gains weight through lack of ongoing financial literacy and not continuously increasing one’s life style management skills.   When your plastic has added volume to your life in a negative way remember,  unwanted debt is much like unwanted fat.   

To reduce debt is much like reducing unwanted body fat, it takes education to understand why we do what we do.   It takes firm personal goals to stay motivated.  And it takes discipline to overcome our weaknesses.

 The good news is becoming financially healthy, just like becoming physically healthy is a challenge that can be overcome and success can be achieved !

Please leave your  comments, questions or concerns. 

Our objective is to discover what you want to learn more about and share with you the best solutions we see available.        

Please visit our home site:  www.SpectrumResources.org  to learn more about Spectrum Resources.

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Posted by SRDC 2012

DID YOU KNOW..The Top 2 Questions Ask About Veteran Burial Benefits ?

March 13, 2013

120x150_myth While I was recently providing information as a consumer advocate to a large group of seniors, it became evident to me many veterans who are now retired are uninformed when it comes to their Veteran Burial Benefits.

 From over ten years of counseling we have found because death and money are subjects that most people don’t discuss openly, especially seniors, few veterans are informed of the current true cost of dying. 

Few realize the steps necessary to coordinate family traditions and final wishes with those of the veteran burial benefits. 

Spectrum Resource’s mission as debt counselors is to provide education and resources to help people make better financial decisions.

 Responsible people see the benefits of pre-need planning and establish it as a household budgeting priority.   

If pre-need planning is ignored,  life guarantees there will be left behind a huge emotional, mental and financial burden on family and/or friends.  Pre-need planning is necessary to save money and grief.   

Veterans who are now seniors do realize no one leaves this world without dying.  However,  many veterans hold the belief that when they go, the government will take care of all the details.  This is a myth that needs busting !  

 Many are unaware that family and/or friends of the deceased must make all the arrangements and pay for everything to be done at the time of death  when there is no pre-need plan in place. 

AFTER the funeral, THEN the family of the deceased can apply to VA for eligibility of any VA Burial Benefits with evidence of a death certificate, DD214, and receipts of the cost of the funeral and burial bills.  ( Receipts must show all bills are ‘PAID IN FULL’ ).  

We fear few veterans who are now retired are experiencing the peace of mind they deserve,  found by locking in today’s prices no matter how far into the future death arrives.  

We found installment payment plans, if necessary, are available and even pay monthly compounded interest.   For those on limited budgets, there are plans that would assure no additional financial burden is left behind.   

In counseling with our clients, we also found  pre-need planning  has the combined benefits of being spiritual, economical, logical and legal.

People can always make better personal money decisions when they seek to know and understand all their options. 

 The VA offers a tremendous amount of free information on Veteran Burial Benefits, it is unbelievable how many conditions must be met. 

Here are answers to the big money questions regarding ‘Non-Service Related Death’:

 HOW MUCH will VA pay IF I am hospitalized by VA at the time of my death OR under a VA contracted nursing home care ?      VA will pay up to $700 toward burial AND funeral expenses  and some of all of the costs for transporting the Veteran remains MAY be reimbursed.

Or HOW MUCH will VA pay IF I do NOT die in a VA hospital?  VA  will pay $300 toward burial and funeral expenses  AND a $700.00 plot-interment allowance IF not buried in a national cemetery.

To further our research into the true cost of dying, we phoned our local county medical examiner’s office and ask questions.

Like many other people,  we too thought that if you had no money the county government would bury you. Much to our surprise, this particular county has no free burial plots. 

In fact on average, it cost this county approximately two thousand dollars to process a body, depending upon the required test and procedures.

By Florida state law,  the county government is required to maintain burial land for un-identified bodies in case of further investigation in the future.   

In this county, the body is cremated, regardless of your family traditions or preferences or religious faith, if a person is designated by social services as indigent, ( meaning persons within a certain income level, with no attachable assets).

This mission to attain more information to help veterans who are now seniors  has been an eye opener to me as a daily money manager. In regards to the financial realities involved in dying, the bottom line in death - there is no free ride to your destination. 

Please share this information with others you feel it will help. “Through Sharing We All Grow !”

Please feel free to leave your questions or comments.    Our purpose is to provide education and options to help those who seek financial self-sufficiency. 

 Till next time,  your personal credit risk assessment planner.

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Posted by SRDC 2012

DID YOU KNOW…Your Christmas List Says A Lot About Your Values ?

December 9, 2012

Photo of Janet FolkertsHave you noticed lessons in life come in all forms and fashion.  As I walked through a crowded department store I saw customers with their arms full of gifts and from all appearances, money to spare. Yes !  Christmas is in the air.  

 However,  I am confused at what I see. As a debt and credit counselor,  I have the perception in speaking with  my clients,  America is facing a financial cliff.   

  Today’s  world is like a two sided sword;  commerce and the reason for the season.  America needs commerce to sustain jobs and homes.  But to sustain the families that dwell inside, Christmas is a perfect time to reflect upon your personal values and the priorities you establish pertaining to how you spend your money.  

 I was shopping for material and pretty ribbon to decorate small jars of cumquat jelly, a fruit unique to this part of Florida to give as gifts.   The woman assisting me at the local fabric and craft department confirmed my suspicions that people really are re-evaluating their priorities. She shared with me her observations of her customers so far this year.  

The store’s employee told me more and more people were creating gifts made from love and that extremely valuable thing called time.   With empathy, she told of how more people were searching for ways to show they truly cared in a more personal and non-commercial way with  homemade gifts such as  cookies,  candies, small cakes, or personalized crafts.

 We exchanged several money saving gift ideas along with other customers standing in line.  I told her I had made  ornaments hand scripted with the year and name written with a special paint pen in gold or silver ( found in office supplies) .  Exchanging only special Christmas ornaments each year will hopefully  start a new tradition.  Of course, personally I still welcome homemade cookies and candies too.

 Another gift idea shared was filling out a blank gift card with a verse or heartfelt words of appreciation. The Christmas spirit is about sharing the gifts you have which might be a talent in expressive writing, poetry,  photography, painting or woodworking.  Adults seem to value being remembered the most where children are content to play with the empty gift box.  A wonderful tradition to start is bringing back the value in caring.   The best gift isn’t always big in size, but one that comes from a big heart.

 Let your sensitive side out and think creatively.  We all live in a busy stressful world where customer service has become a rarity.   People, friends, co-workers and even loved ones are sometimes taken for granted and not recognized as an individual with special interest or cares.  Because of these changing times, think about how rewarding it is when a friend or loved one is reminded they are important by a personalized gift that involved time, effort and consideration.  

 “One man’s trash is another’s treasure.”   Yard sales and flea markets are places you can find beautiful glassware, some antiques and some new.  You may find unique pieces of art, odd pieces of decorative items, all  can be cleaned, refurbished, or personalized.  Using a simple engraving tool, or painting the recipient’s name makes a gift special. 

 The key is finding something that sends the message  that you know who they really are as a person, and you sincerely appreciate them being in your life.

 My objective is to assist those who seek financially self- sufficiency.   Personal money management is about priorities and what better time of the year than Christmas to take an inventory of your priorities.  Take time to look  inside yourself of what  and who is really important. 

Reviewing realistically at what you have to share and who you want to share it with is the beginning of not only a more meaningful holiday, but a step toward you becoming self-sufficient. 

I wish each and everyone of you a safe and happy holiday ! 

The SRDC Lessons will resume after January 2, 2013.

Please leave your comment and visit our home site:  www.SpectrumResources.org to get to know us better.

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Posted by SRDC 2012

DID YOU KNOW..The 5 Keys To Keep From Damaging Your Credit Score ?

November 28, 2012

Who can deny the secret solutions to most problems are found with the keys of knowledge ?   While there are daily challenges in the world of credit,   there are also some basic solutions, if applied,  that can open doors to financial security.   

Lenders are  struggling just like their customers to keep from their options open and reduce their risk of debt.   Today’s lesson will provide you with 5 essential  keys to assist you in stop damaging your credit score. “The more you know, the further your money will go.”

Below are normal reactions that create the three digits preventing affordable interest rates, and insurance premiums, including lower deposits on products or services.  Even though a potential employer may not see your credit score, he does see your credit report and that could prevent you from landing a better job.  All in all, your problem of not knowing how to prevent damaging your credit score makes overcoming daily financial challenges even tougher.  However, recognizing the problem, taking  positive actions utilizing the solution equals success !

Key # 1.         Stop using too much of your credit limit !  Do the math and if you are using more than 30% of your credit limit in debt, it could be hurting your credit score.  SOLUTION:  Either pay down your balances or ask for the credit issuer to raise your credit limit.   The lower your utilization , the higher your score.   

Key # 2.         Stop having a zero balance on your credit card !   Crazy right ?  Please understand the world of credit is built on usage, plus the software creating your credit score cannot compute ‘0’.  Credit is a lending process, if your credit cards always have a zero balance with no timely payments over a period of time, how can the lender determine your skills and more importantly,  determine his risk factor ?  If there is inactivity for 3 months, some lenders will cancel you or drop your credit limit.  Both acts hurt your score as well.  SOLUTION:   Use it or lose it !   Be responsible, make a charge and then pay it off.  

Key # 3.         Stop being seen as a risk !   There are some lenders who look at what you are spending your money on.  They review the charges made on your credit card, looking for lottery ticket purchases, casino tabs, shopping sprees, bar tabs, liquor store accounts, adult entertainment websites and memberships.   SOLUTION:   Use your credit card to make smart purchases, use cash for what may appear as risky ones.   No creditor wants to do business with someone who has priorities not seen as responsible.

Key # 4.         Stop ignoring unpaid parking and moving violation traffic tickets or library fees !   Yes, now you know cities are turning these types of debts over to collection agencies, who in turn submit this negative data to the credit reporting agencies as ‘collection’ accounts. SOLUTION:    Pay off any traffic tickets, and library fees before they become due.

Key # 5.         Stop making ONLY the minimum payment !  This may be great for your current budget, but can prove to be disaster for your credit score. Not only does it cost you anywhere from twice to ten times the initial amount you owe over the life of the card, but potential lenders may see you as over extended.  SOLUTION:  Reduce the amount of cards and strive to pay off the total balance charged each month.

Of course there are more key strategies to keep you fiscally fit, but these five keys if applied to your personal money management habits will start you in the right direction.

Please help us, help others - leave your comments, questions or concerns.  Since 2002, our objective is to provide you with information to enhance your skills and empowering you with the ability to make better decisions.

REMEMBER:  Your daily credit  transactions are reflected by your creditors and averaged against your peers creating a credit score.  To change your score, you must change the reflection of your actions.   Come back and visit us often for a weekly lesson in debt and credit.  

Please visit our home site:  www.SpectrumResources.org  and please take the time to sign our guest book, you will receive a FREE special report on CREDIT because we value what you have to offer.

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Posted by SRDC 2012

DID YOU KNOW..It’s Game Time ?

November 20, 2012

Yes, it’s game time, but this lesson is not about football. I am referring to the game you play with your personal finances when it comes to holiday shopping.

 It’s reported that almost one third of Americans go into the holiday shopping season without saving any money for it.  I find this fascinating since these holidays have consistently been on the calendar for a long time, yet people always seem surprised when the stores start stocking their shelves with holiday products.

 Of course, with no planning ahead, that means many people will be using their current credit cards or will open new lines of credit which leads to new inquiries, higher balances compared to the credit limits and ending up with larger amounts of debt. They will wake up after the last inning of this annual game filled with more remorse than holiday cheer.

 There are no games played without a plan.  And in all game plans,  there are basic rules that keep all involved from getting hurt.  The key is to follow the plan, here are some game tactics that have proven to be winners:

             1.         Make a List and Check it Twice:   List the individuals you plan to buy a gift for, review your current budget and assign a dollar amount you plan to spend on each person.  Stick with this list when it comes time to shop.  Don’t go out of bounds, don’t make up new rules as you go, stick with THE plan.

             2.         Budget and Save:  When you review your list and have calculated how much you plan to spend on each person, divide that total by the number of paychecks you will receive between now and the holiday.  Come to grips with yourself, you have what you have and you can only share what you can afford. If you are buying gifts on a credit card, then it’s not something you can afford because a credit card purchase is a LOAN.  Americans have forgotten that fact, however by budgeting and saving, you can get back to giving meaningful gifts that come more from the heart than your pocketbook.   

             3.         Shop Now, Gift Later:  Take advantage of local merchant specials, tracking their mailed fliers and in store holiday bargains.  Sometimes, the closer to a holiday, the larger the discounts, but this is not always true, so you must become familiar with their marketing strategies to win at this game of discount savings .   Stick with the budgeted amount, not with the perceived ideal gift.  30 days after the holiday, the recipient of your generosity may or may not remember what you gave, but will remember you cared to give. So, the old adage, “It’s the thought that counts” rings true once again.  By putting more thought into an affordable gift, you and the person who receives it will be happy.  Anyone you know well enough to give a special gift to most likely knows your financial ability and would not want you to spend more than you could afford -so don’t ! 

             4.         Save For Yourself:  Yes, I added you in there too.  Stress is a BIG holiday expense. IF you spend every spare dime you have on others, your stress level can end up costing you more than your debt load.  Combined, no one will win at this game. How jolly can anyone be facing the after holiday postal carrier delivering credit card statements with anticipated added over limit fees.   Therefore, if possible, you should save a portion of each paycheck to pay for any unexpected financial crises, health emergencies or repairs.   Maintaining your ‘Emergency Fund’ will give you a sense of security and well being throughout the frenzy of holiday gift giving and celebrations.   

You know which problems you are facing, and know trained professionals in personal money management can help.  If you have a tooth ache, you schedule a dentist appointment with a professional who give you a solution.  Spectrum Resources also provides solutions and can often extract the problem without any pain.  

Often we get so close to the forest we can’t see the trees, meaning you may have become obsessed, or depressed so much over a particular financial problem you no longer can see any options. Spectrum Resources trained debt and credit counselors can give you an outside perspective.   

Spectrum Resources has provided education and trusted resources giving options to those who seek financial self-sufficiency since 2002.  

Please leave your comments, questions or concerns. We value your input. 

Help us, help others, please share our home site:  www.SpectrumResources.org with your friends. 

 Come back for our weekly lessons to build your personal money management skills.

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Posted by SRDC 2012

DID YOU KNOW…Which Credit Myths Are Costing You Money ?

November 14, 2012

Perception is tricky at best, and at it’s worse, wrong perceptions can be painful when it comes to your personal finances.   A new Visa survey found that many Americans don’t know what determines a credit score.

 Despite the importance of credit scores impacting approximately 80% of consumer’s lifestyle decisions including the kind of home lived in, the model of car driven, the job or position held, the amount of deposits paid, and the interest rate paid on debt, the survey found 42% of Americans fail to regularly check their credit reports.

 As one of less than 20 certified FICO PRO’s in the state of Florida, I can say as a credit expert, there are at least 26 major myths regarding credit and credit scoring circulating throughout our nation.   Some information at one time was not a myth but true, but now it is outdated and harmful in today’s credit world.    Most beliefs stem from old wives tales,  rumors on the street, and of course ‘the guy who has connections’ .  

At the top of Visa’s latest survey, it was found people thought incorrectly the following factors are included in determining credit scores:

*             Employment:     59.9%    

*             Interest rates on debt:     58.7%

*             Assets / savings:     53.1%   

*             Age:     38.6%

*             Where you live:     25.3%    

*             National origin:     21.6%

*             Ability to speak English:      21.6%    

*             Gender:     17.2%          

*             Race:     15.7%

Obviously there is more to this story……….For starters, know there are 5 major categories that all three credit reporting agencies consider when creating a credit score, the percentages vary with each of the different credit reporting agencies.  The basic FICO scoring model which is their foundation is established with the following approximate percentages :   Payment History (35%),    Amount Owed ( 30%),    Average Age/Length of Credit (15%),   Type of Credit (10%),   and New Credit (10%),    but hundreds, if not thousands of components actually are considered to create your credit score.    

Each independent credit reporting agency evaluates your actions and determines which score card you are placed in.  Your actions are then compared to and averaged against your peers in that particular score card.  Through changes of your actions such as change of income, employment,  relocating , your position changes from score card to score card.   Based upon all of the variables involved, plus your different creditors are submitting different data at different times, your credit score changes daily.  Your credit score is only created based upon the current data at the time a credit report is pulled.

FACT:    The investment in learning pays the greatest dividends over the longest period of time.

FACT:    No one can provide a solution until the problem is clearly defined.

 Spectrum Resources professionals can define your problem!

Your  benefits  of  a  “SRDC  Consultation,  Audit  and  Analysis”:

*             In the CONSULTATION:  A customized plan of action is created to achieve your ultimate goals. 

                Normally, there are 2 phone consultations before the face to face consultation.

*             In the written AUDIT: You learn how to read and understand the symbols, and industry language found in your credit report. 

*             You learn which of the average 5-8 federal and state violations are in EACH of your trade lines placed there unlawfully by creditors.

*             You learn which accounts with violations are in which of the three major credit reporting agencies.   

*             You learn what approximate amount of debt could be eliminated from your credit report that will adjust your utilization ratio.

*             In the written ANALYSIS:  You learn will receive an overview of what is perceived as your best options  based upon your current situation, to achieve your ultimate goals.

*             In the written Good Faith Estimate:  You learn the amount of perceived cost of disputing the unlawful inaccurate, incomplete information found in your credit file if Spectrum Resources is hired to help you. 

Included is a structured interest free installment payment plan proposal, if needed .

*            AFTER the services shown above are provided, the fee of $155.00 is collected. 

Please leave your comments, questions and/or concerns to help us help you and others.   We value your input. 

ALSO, please visit our home site:  www.SpectrumResources.org to learn more about what we can do for you.

SPECTRUM RESOURCES  Call: (863) 967-0660   Email: SRDC@tampabay.rr.com   Website: www.srdcBlog.com

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