WISER Celebrates America Saves Week!

This week is America Saves Week. All over the country, individuals and organizations are using this week to rededicate themselves to saving and paying down debts. Many are worried about their retirement. These issues are especially important for single women. Women live longer and earn less than men; they are also more likely to remain single, to be widowed or divorced and vulnerable to poverty.

For America Saves Week, WISER has new resources for women who are going through a divorce or who have been widowed. WISER’s guide, “Divorce and Retirement: Take Control of the Retirement Benefits,” helps women navigate the complicated world of dividing retirement benefits at divorce, while “WISER’s Report on Widowhood” offers financial tips for widows of all ages.

Debt Warning Signs: How to Spot Debt and What to Do About It

If more than one or two of these warning signs describe you, you may have too much debt:

• I'm not sure how much I owe.
• I can only pay the minimum amounts due on my credit cards and other bills each month.
• The total amount of money I owe isn't getting any smaller.
• I often pay my bills late.
• I am borrowing from one credit card to pay another credit card.
• I put off going to the doctor or dentist because I cannot afford it now.
• I spend more than I earn.
• I would have financial problems right away if I lost my job or missed a paycheck.

There are plenty of things you can do to start reducing your debt. Living in debt doesn't have to be permanent, but you will need a plan to tackle your payments:

1. Get help from a nonprofit financial counseling agency: Check to see if your local state university (Extension Service) offers a free debt management service. They can help you set up a repayment plan and write to your creditors.
2. Cut way back on your credit card use: Leave your card at home. Don't use it to pay for extras that you can't afford.
3. Get help from a non-profit financial counseling agency: Check to see if your local state university has a free debt management service. They can help you set up a repayment plan and write to your creditors.
   
4. Try one-on-one credit counseling: Contact the National Foundation for Consumer Credit online at www.nfcc.org or by phone at 800-388-2227.

How do I improve my poor credit history?

• Look at how much you owe.
• Prepare a realistic budget. See how much you can pay off each month.
• Contact the companies you owe money to and work out a payment schedule.
• Consider using savings, selling assets or getting another job, at least for a while.
• Consider getting a secured credit card to rebuild your credit, but be sure you understand what will happen if you cannot make those payments.
• Be sure to take the steps listed to maintaining good credit.

Why Ignorance Isn't Always Bliss

Do you know how much debt you're in? If your answer is no, you're not alone. Many women are unaware of exactly how much they owe. If you're juggling credit card payments, loan payments and personal expenses, it's easy to lose sight of your overall debt. But this ignorance is anything but bliss: not knowing how much you owe puts you at risk of having too much debt.

Here are a few easy tips that may help you take control of your financial future:

1) Keep a Record: Record your current living expenses for a month. Look for ways to reduce expenses so you can pay back your debt. WISER's website has an excellent fact sheet with helpful tips on how to keep track of your spending.

2) Calculate Your Monthly Income: Add up your total income—all of the money you receive in salary, other payments and benefits and any earnings on investments each year. Divide your annual income by 12 to calculate your monthly income. Subtract all of your regular monthly bills and the other monthly expenses that you found by keeping track of your spending. This will tell you what money you have left for emergencies, like car repairs. By knowing your monthly income, you can find ways to curb your monthly spending and to reduce your overall debt.

3) Order a Free Credit Report: All US Citizens are eligible for one free credit report from each credit agency per year. Experts suggest looking at credit reports from all three agencies to get an overall picture, because your credit report may vary from one company to another. To receive a free credit report,visit www.annualcreditreport.com or call 1-877-322-8228.

4) Reduce Your Credit Card Debt: Try to use lower interest credit cards or cards with no annual fee. You can get a list of credit cards, interest rates and fees by sending $5 to RAM Research’s CardTrak, P.O. Box 1916, Frederick, MD 21702, or for free on the Internet at www.cardweb.com. See also www.cardtrack.com. The Institute of Consumer Financial Education can also help you reduce your credit card debt. Visit www.icfe.info, write P.O. Box 34070, San Diego, CA 92163 or call 619-232-8811.

5) Pay Right Away: An easy way to stay aware of your spending and to minimize your debt is to pay your bills in a timely fashion. By paying on time, you're not accruing additional charges through late fees and you may able to reduce your interest charges. If you cannot pay the full amount, pay as much as you can each month.