June 2008 Archives

Everyone who uses credit knows what a FICO score is, but have you heard of a FAKO score? 
 
FAKO scores are very similar to FICO stores in that they evaluate the creditworthiness of a person.  But the term FACO (or FAKO) is used to indicate that the scoring system is not a Fair Isaac Corp (FICO) score, but rather a non-Fair Isaac Corp score. 

In short, FAKO is a nickname that means fake FICO.  Unfortunately, thanks to creative marketing, when people receive a credit score, they often don't realize that the score they're looking at in a credit report is actually a FACO score, rather than a FICO score.

Here's what to look for, and how to tell if the credit score you receive is a legit FICO score, or a fake FACO score.

Whether you work at home running your own home-based business or you telecommute as part of your job for another employer, you should know that there are certain tax deductions that you can take.  (And some that you can't.)

In fact, some people avoid taking home business deductions so as not to signal a tax audit.  However, if you follow the rules, then you will have no reason to worry.

For starters, check out these 12 Tax Deductions For Your Home Business.

Cutting back on expenses and saving a little money here & there doesn't mean sucking all of the enjoyment from your life. 

You can still get ice cream treats with your family.  You can still have the occasional shopping spree. 

On those days when I feel that I will burst if I cannot spend some money, here's what I do...

You've made a budget and stuck to it.  You've clipped store coupons, purchased food in bulk, and bought store brands.  You feel a little squeezed, but overall, you are proud of the fact that you actually managed to put a few dollars into savings this month. 

Then the phone rings.  A loved one needs money. 
 
This loved one is the type that spends every dollar as soon as it comes in.  They call you foolish for passing up that new outfit in order to pay off your credit cards.  They refuse food in your home because it is not name brand.  Still, they want some of your money because they did not manage their own well enough. 

What do you do?

Sure, you could yell, scream, bang your head on the table, or visualize smacking them in the head.  Chances are however, you will write them a check, and start your savings account all over again. 
 
If any of this sounds familiar, here are some steps you can take when dealing with a loved one who cannot or will not save money, or at least manage their money better.

If you are deep in debt and your phone is ringing all day with calls from debt collectors and collection agencies, you are not alone. 

Thanks to the gas crisis, the housing crisis, and constantly rising food costs, a lot of people are dealing with debt collectors on a daily basis. 
 
If you're looking for some debt collection help, including tips for dealing with debt collectors who are harassing you, I've got some advice.  You see, I have been through all of this myself, so I know how to deal with recovering from debt and dealing with debt collectors.

Been there, done that!

Once you're in debt, it's difficult to get out of debt -- especially while protecting your credit score at the same time.

I happen to believe that it's worth it to let your credit score suffer a bit in order to dig yourself from under the weight of oppressive debt. It's best to worry about your credit score later. 

Here's why...

In 2006, there were approximately 47 million uninsured Americans. 

Considering the significant number of lost jobs and the current housing crisis, you can imagine how much that number has grown. 

Among those who have to pay for health insurance on their own, it's not uncommon for the health insurance bill to be ranked very low on the list of monthly bills that have to be paid.  After all, it makes more sense to put the immediate need (to keep a roof over your head) first, as opposed to paying for unforeseen expenses (like hospital or doctor bills). 

If you're self-insured (which means you pay for health care expenses out of your own pocket as they arise; also called "self-pay"), or you're uninsured (which means you haven't gotten around to signing up with a health care provider and paying the bills yourself, rather than your employer paying for health insurance for you), then you are most likely under the assumption that you will be able to cover whatever health care costs might arise -- if and when they occur. 

Here are some reasons to think twice about this strategy...