Author Archives: Melissa Hart

Apr 22 2015

Protecting Your Retirement Pension

Pension advance lenders offer retirees and veterans a loan or cash advances in exchange for all or part of their pension payments.  Paying back the advance or loan, plus the high interest and fees that such loans typically include, could threaten older Americans’ retirement security.

If you are considering a pension advance, follow these do’s and don’ts:

  • If you are asked to sign up for life insurance with the pension advance, you could end up paying the insurance premium.
  • If you are resorting to pension advances due to financial difficulties, consider getting financial coaching or counseling from a professional.
  • Don’t be fooled by patriotic-sounding names, logos, or claims of government backing.
  • Don’t give anyone access or control over your monthly pension payments.

For additional information, and learn more, click here.

Teaching Suggestions

  • Ask students to research local non-profit credit counseling agencies and what services they provide.
  • Why is it important not to give anyone access or control over your monthly pension payment?

Discussion Questions

  1. Why do people resort to pension advance loans?
  2. What are other alternatives to pension advance loans?
  3. What recommendation should you take to protect your retirement pension when considering an advance?
Apr 18 2015

What Happens If You Don’t Pay Your Student Loan Bill?

“New data shows that 11.3 percent of student loans were delinquent at the end of 2014–double the rate just 10 years ago.”

Today many students graduate with substantial student loan debt and struggle to make payments–especially when they are just entering the workforce.   While tempting to default on students loans, there are serious long-term consequences.   For example

  1. Your credit score will tank once your payment is 45-90 days late.
  2. You could wind up in default after 270 days, and the lender can ask for the unpaid balance in full and your account could be given to a collection agency.
  3. If you default on federal loan payments, Uncle Sam can take your tax return.
  4. The federal government can take up to 15 percent of your wages if you default on student loans.
  5. If someone consigned your loan, they also suffer the consequences for late payments or a default.

For someone who has fallen behind on student loan payments, the article also provides suggestions that can help get back on track.

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of making student loan payments on time.
  • Discuss the consequences of missing payments or defaulting on a student loan.

Discussion Questions

  1. Why is it important to make student loan payments on time?
  2. What are the consequences of defaulting on a student loan?
  3. Assume you are behind on your student loan payments. What steps can you take to find the money needed to make student loan payments and eventually pay off a student loan?
Apr 15 2015

3 Ways to Diversify Retirement Savings Beyond Stocks

“Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market?  Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk.”

In this article, Cliff Goldstein suggests three different alternatives that could help you increase the diversification in your investment portfolio.  Of course each investment alternative–real estate, peer-to-peer lending, and precious metals–comes with risks that should be carefully considered before making any decisions.  Along with the potential risks for each investment, the advantages of each investment  alternative are described in this article.

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Reinforce why investors should use asset allocation to diversify their investments.
  • Point out the reasons why some people choose real estate, peer-to-peer lending, and precious metals in place of or in addition to more traditional investment alternatives.

Discussion Questions

  1. Pick one of the investment alternatives in this article–real estate, peer-to-peer lending, or precious metals. What are the advantages of the investment you chose?  What are the disadvantages of the same investment?

2.  Assuming you had $75,000 to invest.  Would you use one of the three investment alternatives described in this article or would you prefer a more traditional investment in stocks, bonds, or mutual funds?  Explain your answer.

Apr 11 2015

10 Life Hacks That Will Make You Richer

“Money interviewed dozens of experts in different fields to find out which skills, tricks, and workarounds are most financially worthwhile.”

In this article Daniel Bortz and Susie Poppick describe 10 different activities that can help anyone advance their career and increase their salary.    While the list below identifies different activities, more specific information about each activity is provided in the article.

  1. Master the meeting
  2. Lend a hand at work
  3. Learn a language
  4. Get techy
  5. Write better
  6. Learn social savvy
  7. Take back your workday
  8. Sell yourself
  9. Learn to DIY (Do It Yourself)
  10. Get Organized

For more information, click here. 

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Point out that the suggestions in this article can improve their productivity on the job and make them a more valuable employee.
  • Encourage students to read the article for specific information about each of the above activities.

Discussion Questions

  1. In today’s work environment, why is it important to “make yourself a more valuable employee?”
  2. Ask students to review the 10 different activities and pick the two they feel are the most important. How could those two activities make you a better employee?
Apr 8 2015

Caution: Car Title Loans Can Leave You Stranded

Have you seen a sign offering a car title loan—also known as a pink-slip loan, title pledge or title pawn?  These loans are use your paid-off car as collateral, and you get a small, short-term loan with a high interest rate.  You usually have to repay the loan in 15 or 30 days, and the annual percentage rate (APR) is often more than 100 percent.  If you don’t pay back the loan, the company can repossess your car—and then you’re worse off than you were before.  It’s a very expensive way to get money.

Before you decide to take out a car title loan, weigh some options.

  • Can you get a small loan from your bank, credit union or a small loan company? Even a cash advance on a credit card might cost less than a car title loan.
  • Shop for the offer with the lowest cost. Compare the APR and the finance charges, and borrow only what you can repay in time.

For additional information, click here.

Teaching Suggestions:

  • Ask students how they can avoid costly loans like car title loans?
  • Why car title loans are considered risky and undesirable?

Discussion Questions

  1. What can consumers do if car title lenders fail to disclose all the qualifying terms associated with obtaining a loan at its advertised rate?
  2. What can government agencies do to protect consumers in the short-term lending and auto marketplaces?
Apr 4 2015

Reverse Mortgage Complaints

Reverse mortgages are a special type of loan that allows homeowners, 62 and older, to borrow against the accrued equity in their homes.  Reverse mortgages can help some older homeowners meet financial needs, but they can jeopardize retirement security if not used carefully.

In February 2015, the Consumer Financial Protection Bureau (CFPB) released a report that some homeowners have experienced problems with reverse mortgages.  The most common reverse mortgage complaint is about difficulty with changing the loan terms and problems communicating with loan servicers.  Some consumers, for example, express frustration about slow, inconsistent communication from their reverse mortgage loan servicer.

If you are having a problem with your reverse mortgage or having problems getting through to your mortgage servicer, you can submit a complaint to CFPB online or by calling (855) 411-2372 or TTY/TDD (855) 729-2372.  The CFPB will forward your complaint to the company and work to get you a response within 15 days.

For additional information, click here.

Teaching Suggestions:

  • How can a person access funds from a reverse mortgage?
  • Ask students what other alternatives might be available before settling for a reverse mortgage?

Discussion Questions

  1. What is the purpose of a reverse mortgage?
  2. Can people with very low equity in their home qualify for a reverse mortgage?
  3. How can people protect themselves from dishonest reverse mortgage providers that charge exorbitant fees?
Apr 1 2015

Credit Report Accuracy

Credit Report Accuracy

In late January 2015, The Federal Trade Commission issued a follow-up study of credit report accuracy and found that most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.

The study found that one if five consumers had an error that was corrected by a credit reporting agency after it was disputed on at least one of their three credit reports.  The study also found that about 20 percent of consumers who identified errors on one of their three major credit reports experienced an increase in their credit score that resulted in a decrease in their risk tier, making them more likely to be offered a lower auto loan interest rate.

For more information, Click Here.

Teaching Suggestions

  • Ask students what are their legal remedies if a credit reporting agency engages in unfair reporting practices.
  • Bring to class examples of credit-related problems of individuals and families. Suggest ways in which these problems might be solved.

Discussion Questions

  1. Why is it important for consumers to check their credit reports at least once a year?
  2. What can consumers do to ensure that their credit reports are free from errors?
Mar 28 2015

Affordable School Tips

To help students and their families reduce the costs associated with college, AffordableSchoolsOnline.com provides information and links on various topics.  Features of this website, which was previously known as FrugalDad.com, include coverage college selection, financial aid, saving for college, and career trends for selecting a major.

For additional information on money-saving tips for school, click here:

Teaching Suggestions

  • Have students conduct online research to determine actions that might be taken to reduce education costs.
  • Have students interview various people to determine actions to take to reduce education costs.

Discussion Questions 

  1. What actions have you taken to reduce education costs?
  2. Describe attitudes and beliefs that may minimize a person’s desire to reduce their education costs.
Mar 25 2015

Financial advice for singles

Since they usually have fewer financial responsibilities, singles have a greater opportunity to save for a future family, advanced career training, or long-term financial security (retirement). Singles are also able to share their time (volunteering), talents (teaching others skills/knowledge they possess), and treasures (financial donations) to address local and global concerns related to education, hunger, safe water, health care, job training, and other social issues. Single people, as well as others, may take advantage of free community events, doing volunteer work, and using barter/exchange platforms to share recreational facilities, events, and experiences.

For additional information on financial advice for single, click here:

Teaching Suggestions

  • Have students talk with others who are involved in addressing various social concerns through volunteering and other community service activities.
  • Have students survey several people to determine various actions that might be considered for achieving financial goals.

Discussion Questions 

  1. How does your life situation affect your financial responsibilities and spending?
  2. What short-term and long-term financial goals are you planning for at this point in your life?
Mar 21 2015

Three Key Interview Questions

While a person should expect a wide range of questions in a job interview, awareness of three main questions can help a person better focus their preparation.  Instead of practicing answers to a long list of possible questions, emphasize responses to these questions.

1.  Have you got the skills, expertise and experience to perform the job?
This question will allow you to communicate your competencies that are required to do the job.

2.  Are you enthusiastic and interested in the job and the company?
This question will demonstrate that you researched the company, its strategy, markets, and products.

3. Will you fit into the team, culture and company?
This question allows job applicants to discuss their personality and work style along with how they might fit into the organization.

Responses to these three questions will prepare a person to respond to most other questions. Your answers should be presented in a comfortable manner to create a natural, two-way conversation with the interviewer.

For additional information on the three interview questions, click here:

Teaching Suggestions

  • Have students prepare preliminary answers for these three key interview questions.
  • Have students obtain suggestions for effective interviewing by talking with people who recently interviewed for a job.

Discussion Questions 

  1. What information is commonly presented in effective interview question responses?
  2. Explain how job applicants might organize their ideas to better present themselves in an interview.