Antime I can pass on a simple solution to help out animals, I will do so.  Please take a minute to click on the link and help get homeless animals food. 

I'd appreciate it.

My Father In Law recently fell at home and was subsequently diagnosed with acute onset Alzheimer's.  Previous to his fall, we knew that he was suffering from Dementia, but no doctor had yet given a diagnosis of Alzheimer's.

We had been up to see him just the month before and knew that my husband's parents could no longer stay in their very secluded home in a resort community in Oregon.  The area in which they live is an absolutely beautiful vacation spot/resort and mom and dad have been full time residents there for the past twenty years.

We've been urging them to put the house on the market and move for a few years now, but they were stubborn and refused. We wanted them to move to the Redding area with us but the thought of it overwhelmed them.  At 83 moving 65 years of "stuff" was too much to deal with.

When Dad fell, he was admitted to a re-hab hospital in to try rehabilitate him to the point where he could go home.  Instead of getting better he has gotten worse and the facility has given up on him.  Turns out that he will never be able to make that trip home.  In Dad's lucid moments he is asking if he is ever going to see his home again, then he slips behind the the veil of Alzheimer's and we lose him again.I asked the hospital if it would be helpful if we let him walk his home one last time.  She said that it's not a good idea as it would likely increase the confusion and worsen the condition.

Next week we will be moving Mom and Dad from Oregon to Redding into a long term care facility.

Caretakers will move into their house for the winter and next spring we will likely have to put the home on the market.  It's won't be simple at all.

Mom and Dad planned for everything but this.  They have decent retirement, excellent health care benefits and have taken excellent care of their bodies.  The stock market and real estate crash have taken away much of their nest egg in the last few years.  They owned a lot of GM, the income from that stock is gone in the Bankruptcy.

They never purchased long term health insurance and they kept themselves secluded.  Turns out that seclusion drastically increases the chances of getting Alzheimer's.  Long Term Health Insurance would have meant financial security for mom.  Medicare does not cover long term care for Alzheimer's.  They leave this to the states.  The care has to come out of existing assets, meaning that there might not be anything left to care for Mom after Dad passes.

She now faces an uncertain future with a  man that she soon won't recognize.   She too is leaving her home.  Although she will see it again, this journey will be especially difficult.

I have learned much over the past few weeks on the topic of Alzheimer's and was planning on starting an outside blog on the topic.  I finally realized that I needed to post it to the Active Rain community.  This situation is impacting all aspects of their lives.  Real Estate, Estate Planning, investments, insurance, medical, phychological - you name it has touches it.

With tears streaming down my face I write this post.  I hadn't realized how important it was for me to get out of my mind and onto "paper". 

Here are a few things that you need to know about Alzheimer's

1.  It runs in families

2.  Keeping the brain active and stimulated significantly slows it's progression.

3.  It has the potential to leave survivors destitute - make sure that you have long term health insurance.  I read once that LTH Insurance is more important than life insurance.  Now I understand why.

  I will continue to share this journey along the way.  It won't be an easy road but I'll appreciate it if you join me.

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

The other day I came across an article that demonstrates the power of social media and how it can  

Background:  In a re-run of a story that I hear every day, Bank of America arbitrarily increased Ann Minch's interest rate to 25%.  According to the video, she had been a long standing customer, had never been late and has good credit.  BOA gave her no warning and refused to lower the rate when she called to complain.  In todays market enviornment, this is standard procedure. 

After going through the normal channels she got no satisfaction, the bank refused to return her interest rate to the lower level.    She fought back by posting her Debtors Revolt Video on You Tube.

The Result: Within 5 days of the video being posted on You Tube, Bank of America contacted Ann and agreed to reduce the interest rate to the previous level.

Why is this significant? It demonstrates the viral impact of social media on corporate behavior. It used to be that a dissatisfied customer had to get the attention of the news media to get their message out. If they were lucky a reporter would contact the company and air the dirty laundry on the local news.

Social Media gives each and every person the opportunity to fight back without involving a third party. More importantly, the reach is further. This video created a call to action to thousands of angry consumers. It spread like wildfire across the internet and Bank of America responded - FAST.

Obviously this video caught my attention because it involves what I do for a living. Beyond getting a certain satisfaction for this woman's win, I realized that this win has nothing to do with interest rates or debt.

The real take away here is that social media has the power to make Business more responsible. Corporate America can no longer control the brand with carefully crafted PR campaigns that cover up the truth. Ultimately this video demonstrates that Social Media has power beyond the mundane. Social Media will force Corporate America make choices that are good for consumers and business. Ultimately that's good for America!

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

Matt has asked for help - so I'm pitching in and helping.  Please pass it on and help get Matt to the Expo!!

When I first read the Credit Card Accountability, Responsibility and Disclosure Act, or the CARD Act, I remember shaking my head in disbelief.  I understood instantly that it was nothing more than feel good legislation that allowed Congress to get some good press on bad legislation. 

Turns out I was right.  Since passage of the law, banks and financial institutions have steamrolled customers with increased fees, rate hikes and other costly changes that are pushing many clients into default and even bankruptcy.

According to an article that I read at RedTape Chronicles "Consumer Action says since spring, banks have engaged in arbitrary interest rate hikes, increased fees on balance transfers, added annual membership fees and dramatically raised minimum payment requirements."

There is not a day that goes by when I don't receive multiple phone calls from clients telling me that they could afford the payments a few months ago but the rate hikes and increased minimum payments have pushed them over the edge.  They are asking me for help because the only other option is Bankruptcy.

Here are some of the things I personally am seeing happen:

1.  Minimum payments are being doubled in many cases.  If a consumer was on the edge before, this increase puts them over the tipping point.

2.  In a rush to beat the legislation deadline, Credit Card companies are increasing interest rates, thus raising minimum payments more than would have happened under the legislation.

3.  When clients call for help, they are told - too bad, pay or we will harass you with 25 phone calls a day.

The law was a sham to begin with.  It did nothing to change universal default and in fact didn't change any of the tricks and traps the industry has become known for.  All it did was demand that the credit card companies give 45 day notice if they are going change the terms of the agreement.  There is absolutely nothing in the bill for the consumer and no recourse for the consumer other than to close the account.

Unless we as consumers understand what is happening and fight back, these companies will continue to ruin the financial futures of millions of Americans.  Worse, they will force increased demand for social services as we push people into financial ruin.

I am seeing people who have lost their jobs using retirement income to keep current on credit cards.  They are refusing to work with customers in hardship until after the credit is already ruined. 

I don't know what the answer is, because Congress is in bed with these companies. Here is what I want to see happen:

1.  Eliminate the use Universal Default  immediately

2.  Regulate the use of FICO scores to new credit only.  There is no reason that FICO scores need to be viewed by potential employers or other creditors unless new credit is being applied for or the job requires security clearance.

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

In a continued tightening of oversight on the financial sector, Washington is considering passing broad legislation that will limit the types and amounts of fees that banks can levy against customers.

In an attempt to stave off the legislation,  Bank of America, J.P. Morgan Chase & Co., and Wells Fargo & Co. have announced that they will eliminate overdraft fees for customers when they overdraw their accounts by $5 or less .  In addition the banks will impose no more than four overdraft fees per day.

I've written several posts on this issue and am glad that this issue is finally getting some air time.  I first wrote about this over a year ago when I discovered that banks routinely allow consumers to make debit purchases when there isn't enough money in the checking account to cover the purchases.  The most recent post was a discussion on the ungodly profits that banks are making from overdraft and other hidden and sneaky fees.

As a debt consultant, I have a healthy dislike for the practices of the banking industry.  The stories that I hear on a daily basis would curl your toes.  I have strong consumer advocate leanings and I absolutely agree that the banking sector needs to be reigned in.  The predatory practices are crushing the middle class and hurting our economy in the pursuit of stockholder profits.

Frankly, I'm in favor of smaller regional banks.  I would have preferred to see Citi and other monster banks that were deemed too large to fail, fail. 

That said, I've also learned that our current Congressional Leadership have a tendency to pass feel good legislation that ultimately hurts the consumer more than it helps.  The recent passage of the Credit Protection Act, has caused minimum payments to increase and have caused many consumers to reach a tipping point and is pushing many into Bankruptcy or default.  The significant issue of Universal Default was never addressed and we now get to carry guns in National Parks.

Common sense regulation/legislation that benefits both consumers and banks is needed.  I favor legislation that will emphasis education and gives the consumer true choice!  The underhanded sneaky practices must be stopped as they benefit no one!

How and if that will be accomplished remains to be seen.  Stay tuned - this issue isn't going away soon.

Related Posts:

Would You Pay $40.00 for a Cup of Coffee

And Banks Call Mortgage Companies Predatory - This is Legal Stealing

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

As I watch the health-care issue rage on, I can't help but notice the political divide that this issue has caused.  Perhaps it's just because I'm getting older, but it seems that the chasm between Liberals and Conservatives has never been greater.   I'm thinking that too many Americans are looking at the health-care issue through a distorted lens.

I have to wonder if the challenge for many Active Rainer's, is that our livelihood is based on the perceived success of capitalism, free markets and republican values.    We understand that when capitalism is working as it should, that our personal financial outlook improves. real estate appreciates and the American Dream of home ownership is realized more frequently.

Even with that understanding, I find it odd that more of us are not arguing in favor a public option or a single payer health care system.  As a profession we stand to benefit greatly from ease of access to health-care.  Most of us are 1099ed and independent contractors making health-care more expensive for us. As a profession,, the ease of access to group plans is narrow, premiums are higher and coverage is lower.  Oddly, we support the values of big business, even though we ourselves are small businesses. 

The trickle down theory so permeates our consciousness that we can't step away from lens long enough to realize that it's not in focus.

The health-care plans coming out of Congress benefit big business at the expense of small business and individuals.  That's not OK.

I argue that a single payer system or public option will help us as individuals and help our businesses.  If Americans are able to spend less on health-care, that means they have more to spend on housing!  If health-care takes up a smaller percentage of gross income, disposable income increases, DTI ratios decrease and the American consumer will feel richer.  When Americans feel richer, they are more likely to get off the fence and move towards home ownership.

As I'm writing this, I can hear the dissenters argue about increased taxes digging into the disposable income I mention above.  To that I say, what is the one remaining tax shelter that benefits all Americans?

You guessed it, it's home ownership!

I think that this is an instance where "socialism" in one industry promotes capitalism in another.  There is a certain synergy that exists when you turn the lens around and focus it differently.

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

In July Redding's City Council, approved the appointment of a privatization committee to consider the pros and cons of privatizing or outsourcing city services.  The Redding Convention Center is one of the facilities on the list for privatization or outsourcing.

Today, September 17th,  at 4:00 PM  there will be a Special Meeting in the Community Room at the Redding City Hall to discuss privatizing the Redding Convention Center.

There are two possible courses of action, both with substantial implications for Non-Profit and Community Organizations.   Non profits use the convention center and pay less to utilize the facility, it's part of the concept called: the public good that the City subsidizes the use for these organizations.

1.  The biggest worry is that if the Convention Center is privatized, the fees will be so high that the Non-Profits will not be able to afford to rent the facilities.

2  The other option that is being considered is tearing down the Auditorium because of the drain on the city budget ($900,000 per year).

Rumors abound regarding who is behind the push to privatize or tear it down. Some argue that it's driven by a fight over TOT funds.  This argument suggests that local hoteliers want all the TOT money for themselves and that they want the Convention Center torn down.  I checked with a local hotel owner who indicated that the hotel association has not made any recommendations as to the convention center that he knows of.

Some believe that the McConnell Foundation is behind it and that privatizing or tearing it down will afford the Foundation the opportunity to swoop in and purchase the land for development purposes.

As background, the convention center was built years ago as a public asset and was never intended to be a profit center. Because some of the members of the committee think the convention center should be profitable, they keep asking questions about why the convention center is an economic black hole.

Cities build convention centers so that people who live in other communities have a reason to come to their city. Think of San Francisco, Las Vegas or New Orleans where tourism is a major revenue generator for those communities. To make a convention center work, there has to be a major airport to get the people in and out of the city. In Redding, there is no airport to facilitate even 100 people coming into town, most of the flights are already booked with local citizens needing to get a connecting flight and business people who need to fly in and out of Redding. 

Does it make sense to close the convention center? It depends on how you look at it. If there is a need to have the operation break even, it never will. The building was intended to be a gathering spot for community events that were bigger than the Veterans Hall next to the Post Office downtown and possibly bringing people from the outlying areas to spend money in Redding.  One needs to look at the schedule of events at the convention center to determine if the building is still relevant; and that is a community decision.

In any event, today's meeting is a significant one, one that members of the community need to be involved in. Be there if you can, make your voice heard!

I am Kate Bourland. I help my clients get out of debt  and establish a debt free lifestyle.    You can reach me at 530-419-3967.

Yesterday, the Federal Reserve announced that The Great Recession, which bulldozed our financial lives into a pile of rubble,  is probably over.   Home sales have risen for three straight months, the stock market has rallied 44 percent since March, and the June economic indicators showed seven of the top ten leading indicators to be up. 

It's estimated that the economy is expanding at a 2.5 percent annual rate in the current quarter and Bernake told Congress that economic activity "will increase slightly over the remainder of 2009,"    By contrast, the economy shrank a staggering 6% during the months of September 2008 and March 2009. 

The weak link in the recovery will be consumer spending as 70% of US economic activity is driven by how much consumers spend.  Without consumer spending there will be no recovery.  In July consumer debt contracted by an astounding 21.6 Billion Dollars, while unemployment continued to rise.  The drop in consumer debt was 47% higher than analysts expected and indicates that consumers are in no mood to take on large purchases.

Where does housing play into this equation?  Can there be a recovery without Real Estate? 

Housing drives jobs and it drives consumer spending.  It effects the average American far more than the Dow Jones or NASDAQ and must play a critical role in a long term recovery.  Without housing there can be no sustainable recovery.

We have a new wave of foreclosures set to hit the market in 2010, banks are holding REO inventory that at some point must hit the market and mortgage money is still extremely tight.  Current market inventory, without foreclosures and REO's hitting the market, indicates a 11 or 12 month absorption.   It's likely higher due to the unknown factor of bank owned properties.  This means that there is not a lot of room for new construction, which drives jobs, which drives consumer spending.

These factors suggest that mainstreet will not feel any kind of recovery for months if not years to come.

The only positive indicator is that interest rates are likely to stay low and if the stock market continues it rise, credit markets might loosen up and allow the inventory to be absorbed.

I find it odd that it took the Feds nearly a year to admit that we were in a recession, but it's only taking a few months before they announce its demise. 

At the end of the day, the job market must be stimulated, the credit markets need to be loosened and housing inventory has to start moving before this 'Great Recession' is truly over.

We as Americans will need to think outside the box, we are going to have to create our own realities and find solutions outside historical paths and existing social norms. 

What are your thoughts?  Can we have a recovery without housing?

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com

45% of American Banks make more from overdraft fees than then they do in profits from normal banking activity.  What is wrong with an industry whose entire business model is built upon stealing money from the very people who can least afford it?

A recent New York Times article outlines a Wells Fargo customer whose teller failed to tell him that funds from a recent deposit were being held.  He went about using his debit card and made a number of purchases under $10.00.  He was charged multiple $34.00 over draft fees to the tune of $238.00.  This means that a 4.00 cup of coffee at Starbucks actually cost him $38.00.

In my opinion, if a Bank can't make money lending money, then they shouldn't be in business.  I say, close their doors now, don't pass go and don't collect $200.00

Here's what the banks do:

1.  Customers are allowed to overdraft their account on their debit cards at point of purchase. (The banks bill this as overdraft protection and claim that they do this so that the customer is not embarrassed.)  If the customer is aware that this is happening it's not a problem, they get to the bank and make sure that the debits are covered.

2.  Unfortunately, thousands of Americans are unaware that it's even possible to use the debit card to withdraw more than is in the account.   They find out the hard way that a $1.00 overdraft has cost them hundreds of dollars.

3.  One of the sneaky techniques that banks use to increase revenue from overdraft fees is to process large debits first.  In the old days, debits were credited based on the date and time they were incurred.  No longer.  By processing larger debits first, banks realized that it would force many customers into multiple overdrafts, thus increasing fees.  By contrast, if the large debit were processed in order, they bank might only make a single overdraft fee- easy profit at the hands of a consumer programmer.

I for one am tired of the heavy handed financial sector.  We as Americans do need to be responsible with our money, but when the systems are designed to trip us up and bury us, something is very wrong.

Unfortunately, I have no faith that any legislation being considered will actually help the consumer.  Based on what we have seen in the last several year, government intervention will hurt the consumer and the small businesses who rely on small debit card purchases to stay alive.

The playing field isn't level, stay informed and watch your balances. 

For those of you who are interested - here is the New York Times Article

I am Kate Bourland. I help my clients get out of debt, get loan modifications and establish a debt free lifestyle. We Guarantee our Loan Modifications. You can reach me at 530-419-3967.

http://www.katebourland.com