Your Budget Needs A Redo - Check The American Recovery And Reinvestment Act
May 12, 2009 – 6:57 amIf all this talk of stimulus plans has your head spinning so much that you’ve just started turning off the nightly news, you might want to listen up once more. Incredibly important legislation is happening that may affect your pocketbook in more ways than you think. Let’s look at just three issues here that may affect your budget.
Check your paycheck for some additional funds. Does your current take-home pay seem different? It should be just a tad more as the IRS has given your employer some reduced tax withholding rules. That little amount of extra money in your paycheck is the perfect opportunity to review your budget. Are you paying off that credit card as quickly as you’d like? If not, just applying that extra $25 or $50 each month will start you on the right track.
Check your college plans and adjust your budget. If college is in your family’s future, pay attention to the American Opportunity Tax Credit. This plan raises the maximum tax credit for college from $1800 to $2500 and extends the time limit from two to four years. That’s an incredible hand-up for folks who are trying to put a child or two, or even themselves, through four years of college or other higher eduction. Time to review your budget and take a harder look at that college fund.
Check your mortgage and rework your budget. Families with a home mortgage are really struggling to get good information. When you get the proper information about how to manage your mortgage, you can really turn that budget into a working masterpiece. You may need advice and mortgage counseling that’s personalized for your needs. The Department of Housing and Urban Development, HUD, can get you started revamping your mortgage. You can call 1-888-995-HOPE any day, 24 hours a day. This service is operated by members of the Hope Now Alliance and HUD certified counseling agents. You can also go online at HopeNow.com. Mortgages are scary when your income is limited. Get yourself armed with information, then get out that budget again and see if you can work some magic this time.
A reminder is in order: HUD NEVER CALLS OR CONTACTS YOU TO OFFER THEIR SERVICES. So, please, be aware that if someone calls you, sends you a letter, or emails you, and introduces himself or herself as a HUD representative who’s only job in this world is to resolve all your mortgage problems, hang up the phone, tear up the letter, or hit delete.