Press Room: Press Releases And Media Advisories

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This section lists all press releases issued to as far back as 2002. To research other releases please check our 2000-2001 archive or contact:

Todd Emerson, President/CEO at 1.951.779.7725.

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Springboard Non-Profit Consumer Credit Management Helps Consumers Understand the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Riverside, CA (March 9, 2005) - Now that the U.S. Senate has fastracked the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, rumors have spread regarding how this law would affect consumers. Springboard Nonprofit Consumer Credit Management is available to discuss the premise and basics of the proposed law. For more information regarding the Bankruptcy Reform bill, contact Dianne Wilkman, President/CEO of Springboard Non-Profit Consumer Credit Management at 800-947-3752 x 702.

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Springboard Non-Profit Consumer Credit Management
Available to Media to Discuss Impact of Bankruptcy Reform on Credit Counseling

Riverside, CA. – Dianne Wilkman, President/CEO of Springboard Non-Profit Consumer Credit Management, will be available to members of the media to discuss the impact of the credit counseling provisions of S. 256, the federal Bankruptcy Reform legislation, on consumers and the credit counseling industry.

The bill includes two provisions mandating financial counseling and education: (1) before filing for bankruptcy, consumers would be required to have a briefing on the alternatives to bankruptcy; and (2) before receiving a bankruptcy discharge, a debtor would be required to complete “an instructional course concerning personal financial management.”

“Congress is on the verge of requiring that financial counseling and education be a part of the bankruptcy process. These provisions will ensure that consumers understand the alternatives to bankruptcy, and more importantly, receive financial training,” said Wilkman. “For over 30 years, Springboard and its member agencies have played the key role in providing financial counseling and education to consumers. We stand ready to, as we always have, to assist consumers under the new law.”

Interviews with Dianne Wilkman may be arranged by calling 800-947-3752 x 702.

About Springboard Nonprofit Consumer Credit Management

Springboard, a nonprofit credit counseling and education organization founded in 1974, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council on Accreditation of Services for Families and Children, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies that ensure low-cost confidential services performed in an ethical manner. Springboard is a member of the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. Springboard has counseling locations throughout Southern California offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-947-3752 ext. 702 or visit their web site at www.credit.org.

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Springboard Non-Profit Consumer Credit Management Encourages Consumers To Know The Difference When Choosing Help With Credit Problems

( Riverside, CA) February 10, 2005 - This time of year, consumers evaluate their financial situation and many will realize they need help creating a budget and managing their debt. But when they open the yellow pages or talk with family and friends, they quickly become confused about their options. TV and radio ads sound too good to be true.

“Springboard wants consumers to know the difference when choosing help with their credit problems,” says Dianne Wilkman, President/CEO . “There are options depending on your unique situation and it’s important to be a knowledgeable consumer.”

Springboard offers this summary of credit help options:

Credit Counseling Organizations : credit counseling agencies fall into two categories: member affiliated agencies and independent agencies.  While several member groups have been formed, the two leading umbrella organizations that many agencies affiliate with are the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. 

The credit counseling industry was originated through the National Foundation for Credit Counseling, Inc.® (NFCC) and has more than 125 community-based members. Springboard carries the NFCC Member seal, which serves similarly to the “Good Housekeeping” seal of approval. This seal helps to assure consumers that they are receiving services through an agency that is accredited, has certified credit counselors, protects client funds, credits consumers for all debt payments and offers free and affordable services. 

Many of the new highly visible debt services agencies that are strictly national phone bank centers are not affiliated with either of the two organizations above. While they all advertise as nonprofit agencies, many of the new debt service/counseling agencies operate like for-profit entities.   Some of these agencies have aggressive telemarketing and advertising strategies to get as many people as possible signed up on debt plans as a means of boosting their revenues. With some basic budget counseling and coaching, many consumers are able to self-correct their financial situations and should not be enrolled in debt plans.

Debt Consolidation Companies are a different kind of consumer finance service. These financial institutions offer loans to settle consumers’ debt by paying off current debt obligations. Some loan products include high interest rates and extensive or high penalty fees which are not well-disclosed and which results in more debt.  Some financial institutions have undisclosed relationships with independent credit counseling agencies.  The credit counseling agency will serve as the front line to recruit clients with the goal of enrolling consumers in a debt consolidation plan under the guise of “credit counseling. Telemarketers or counselors often operate under financial incentives to get as many people as possible signed up for loans, regardless of whether the loan is in the best interest of the consumer. One of the dangers is that many consumers sign up for consolidation loans to pay off their credit cards, and keep using their credit cards. 

The outcome: they are stuck with the loan and the new credit card bills and the deep debt cycle continues. However, if a consumer uses a debt consolidation to pay-off multiple credit card accounts and is careful to repay the loan and discontinue use of those credit accounts (to ensure they are not piling on more debt), a consolidation loan can be a useful financial tool.

Debt Settlement Companies are another group that advertise to "settle your debt."  They will suggest that a consumer stop paying a creditor and instead pay into an account with the debt settlement company over (6 to 12 months) who will in turn negotiate an account pay-off in a lesser amount with the creditor.  For example:  if a consumer owes Sears $5,000 and the consumer’s account is in default, the settlement company will recommend that the consumer discontinue payments to Sears. The payment funds are then redirected to the debt settlement company.

Once a consumer has paid a certain amount to the debt settlement company (say $4,000), they'll contact Sears on the consumers behalf to settle the debt for a lesser amount. The creditor will often settle.  The danger in these services: once consumers stop paying their creditors, the creditors can file negative payment information on consumers’ credit reports. This is damaging to a consumers credit, since credit profiles are largely based on consumers’ payment behavior. Some companies claim that will have the information removed from a consumer’s credit as part of their negotiation with the creditors. This is not guaranteed, since accurate account payment history can stay on consumer’s credit reports for seven (7) years. Also, some debt settlement companies also levy hefty fees that are sometimes not disclosed to consumers.

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Springboard Advises Consumers to Protect Yourself From Private Debt Collectors

( Riverside, CA) January 25, 2005 – Since President Bush signed into law the American Jobs Creation Act of 2004, many have criticized the potentially dangerous contract between the IRS and private collection agencies. Under this new law, the IRS is now able to outsource to private collectors and enable them to collect consumer’s tax debt. Springboard Non-Profit Consumer Credit Management encourages taxpayers to be aware of what private collectors may and may not do in order to protect yourself.

Although IRS outsourcing will not happen overnight, many are afraid that this initiative will create its own set of problems. The trouble is that private debt collectors will be receiving a 25 percent profit off of what they are able to collect, and who knows what types of scandals may arise from this. Private debt collectors may be willing to risk the rights and privacy of consumers in order to get their end of the job done.

The IRS claims that a taxpayer’s privacy will be protected throughout this process, but Springboard advises consumers to watch out. This course of action is not a guaranteed win-win situation. Consumers must be aware that private debt collectors only need to know your amount that is due, your name, address, and phone number. They are not entitled to any other personal information and do not need to know your tax return or tax history.

To help you survive this tax season and avoid being misled by private debt collectors, contact Springboard Nonprofit Consumer Credit Management at 1-800-WISE PLAN (1-800-974-3752). Springboard is approved by the IRS and Franchise Tax Board to provide repayment plans for tax liens. Springboard offers the IRS Advocacy Program, which helps consumers repay their tax debts on an installment basis.

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Springboard Warns Consumers about Tricky Marketing Tactics

( Riverside, CA) January 27, 2005 – Springboard Non-Profit Consumer Credit Management warns consumers about credit bureau’s marketing techniques. One of the top three is awarding consumers with a perfect 850 credit score with $1,000 and free “Credit Alerts”. Although this sounds like a perfect deal, how likely is it to find a perfect consumer with a perfect score? These perfect people probably don’t exist, except in heaven.

Springboard encourages consumers to be smart and not fall for this marketing tactic. This strategy is a perfect gimmick to attract consumers and reel them into their expensive and unnecessary “services”.

Consumers may obtain a free credit report from www.annualcreditreport.com, by calling 877-322-8228, or by mailing an Annual Credit Report Form (obtained at www.ftc.gov.credit) to Annual Credit Report Request Service, P.O. Box 105281, Atlanta GA 30340-5281.

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Springboard Non-Profit Consumer Credit Management Lauds Congressional Inquiries into Credit Counseling Industry

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Springboard Advises Consumers to Focus on Their Financial Health in April 2004 -
"Financial Literacy Month"

Riverside , CA – The Agency advises consumers to focus on the state of their personal finances during the month of April 2004, which was recently designated by the United States Senate as “Financial Literacy Month.”

“This is a good time for consumers to take a hard look at their finances to see if they are on track to meet their financial goals for the year,” says Dianne L. Wilkman, President/CEO. “Consumers who haven't made much progress and those who are struggling with debt should consider seeking money management advice through a reputable nonprofit credit counseling agency.”

Federal government officials are also encouraging consumers to develop sound financial planning skills that will lead to a solid financial future. On March 9, 2004, the US Senate passed Senate Resolution 316, designating April 2004, as ``Financial Literacy Month.'' The resolution, introduced by US Senator Daniel K. Akaka ( Hawaii ), serves as a proclamation that calls for the federal government, states, localities, schools, nonprofit organizations, businesses, other entities, and the American people to observe the month with appropriate programs and activities that advance the financial wellness of all consumers.

During the week of April 19, which is also National Credit Education Week, credit counseling leaders met in Washington , DC with US Senate and House representatives to advocate for financial literary programs and industry standards that help protect area consumers who seek credit counseling services. Springboard also invites consumers, businesses and civic organizations to support local community events and activities that advance financial literacy and economic wellness for families and individuals.

“When seeking credit counseling services, consumers should seek services through an accredited, reputable nonprofit agency that offers holistic services that include extensive reviews of a consumers' income, expenses and spending habits,” says Wilkman. “ It's not enough to find agencies that will help you get out of debt – consumers should seek services through agencies that offer financial education sessions that help consumers develop better financial management skills. Good money management skills can help consumers stay out of deep debt in the future.”

The agency offers the following guidelines to help consumers identify agencies that are operating in the best interest of consumers. Persons in need of financial management assistance should consider the following when choosing credit counseling services.

• Select a nonprofit, community-based agency with a history of good customer service.

• Agency fees should be clearly disclosed in advance of services and services should be either low cost and in some cases free.

• Avoid agencies that charge high set-up or monthly fees and fee deposits that allow the agency to keep all or a portion of the client's monthly payment to creditors.

• Seek services through an agency that is a member of a nonprofit umbrella organization, such as the NFCC (agencies like Springboard Non-Profit Consumer Credit Management are accredited by a reputable third-party organization that certifies the agencies' services are quality and in the consumers' best interest.)

• Look for agencies whose services are administered by counselors certified or trained in basic money management services, not telemarketers whose only goal is to sign consumers up for a debt payment plan.

• Check with your local Better Business Bureau or State Attorney General's office to find out if there are unresolved consumer complaints against an agency.

• Seek services through an agency that offers consumers a choice of services (financial management advice, financial education programs and debt management services) that can be accessed through a local office and by telephone.

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Springboard Warns Against Tax Refund Loans

Consumer Credit Management Organization Provides Tips to Help Consumers

RIVERSIDE , CA

February 2004 - You are in need of cash and anticipate getting a nice tax refund. Unfortunately, the refund could take several weeks and you need the money now. If you are impatient, a refund anticipation loan, or RAL, could be quite a temptation and these have exploded in the past five years. Many banks and tax preparation service providers offer this as an option, but it comes at a cost to desperate consumers.

Those who offer RALs typically charge from $30 to $100 for loans that can last up to 10 days. Depending on the length of the loan, RAL borrowers often pay as much as 19 percent interest or more on a one-month loan that is nicely secured by a government refund check, meaning no risk to the lender!

Springboard, a non-profit consumer credit management organization, strongly recommends consumers avoid applying for RALs.

“RALs are similar to payday loans - they are very expensive short term loans with high price tag interest rates,” said Dianne Wilkman, president and CEO of Springboard. “Like payday loans, they prey on unsuspecting consumers and only contribute to the consumer's existing debt trap.”

To avoid applying for a RAL, Springboard encourages consumers to consider the following:

•  Electronic filing - File online and avoid the traditional paper filing through the mail. If consumers “e-file” they can avoid unnecessary delays of their tax refunds in as little as 10 days versus the six weeks for returns filed by mail.

•  Educate yourself - Take control of your taxes and get tax smart. To help navigate new tax law changes and provide new information and resources to maximize savings, Springboard and TurboTax have created a guide and education program on tax preparation. Consumers can learn tax tips, obtain a tax preparation checklist and learn how to organize and file their taxes.

• Utilize tax software - Look into tax preparation software, such as TurboTax, to help identify deductions you may have not known you qualify for and the program does the calculations for you. Tax preparation software can make doing your taxes faster, easier and more convenient. Springboard offers low cost tax prep services and is an approved e-filer with the IRS.

•  Use your refund wisely - Once you get your refund put it to good use. Pay off credit cards or build up an emergency stash. Do not give into the impulse to pay for vacations, home entertainment systems or high priced appliances.

•  Best tip of all: don't get a refund! That's right, reduce your withholding and keep your money throughout the year, paying off more debt or putting it into savings. Don't let them get it in the first place.

“Consumers who will be receiving a tax refund want them as soon as possible because more often than not they have already spent the money,” Wilkman said. “However, consumers need to know that a RAL will only add to their existing debt.”

Springboard, a non-profit consumer credit management source and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council on Accreditation of Services for Families and Children, with several Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISEPLAN (800-947-3752) or visit their web site at www.credit.org . ###

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Springboard Joins National
Organization To Sponsor Sixth Annual National Consumer Protection Week 2004

“Financial Literacy: Earning a Lifetime of Dividends”

Springboard Non-Profit Consumer Credit Management joins federal, state and local agencies and national advocacy organizations to launch the sixth annual National Consumer Protection Week (NCPW), Feb. 1-7, 2004, highlighting consumer protection and education efforts around the country. This year's theme, "Financial Literacy: Earning a Lifetime of Dividends," focuses on the skills consumers need to make smart decisions in the marketplace and ensure a solid financial future.

"Financial literacy is an asset for all consumers,” says Dianne Wilkman . "Whether you're shopping for groceries, applying for a mortgage, comparing retirement or health insurance plans, or deciding how much of an allowance to give your child, every financial decision has some impact on your quality of life.” Additional information on financial literacy is available at www.consumer.gov/ncpw .

In October 2003, the Federal Trade Commission and Internal Revenue Service issued an alert to caution consumers about abusive credit counseling services. Given the growth in nonprofit credit counseling services, some consumers may be confused about whom to trust for quality financial management advice and debt relief. Consumers are urged to contact NFCC members for trusted, tried and true nonprofit credit counseling services . For half a century, NFCC members have represented credit counseling best practices through consumer education programs on proper money management and the wise use of credit. Springboard is an NFCC Member agency. NFCC requires its members to maintain high quality services through Membership Standards and Credit Counseling Consumer Protection Standards. To read more about these standards, visit www.credit.org .

“All credit counseling agencies are not created equal,” said Consumer Federation of America (CFA) legislative director Travis Plunkett. “CFA urges consumers to avoid agencies that charge high up-front fees and that aggressively push credit card consolidation plans. Instead, consumers should look for agencies that carefully evaluate their financial situation, while offering a variety of educational and counseling options at reasonable fees.”

Consumers nationwide can ensure that they receive assistance from Springboard Non-Profit Consumer Credit Management by calling (your agency's phone number(s) or visit online at: www.credit.org.

During NCPW, representatives from federal, state and local agencies and national advocacy organizations will help consumers - of all ages - understand how the decisions they make in the marketplace affect their overall fiscal fitness. For more information about NCPW, visit www.consumer.gov/ncpw.

Organizers of this year's NCPW are the Federal Trade Commission (FTC), the Federal Citizen Information Center (FCIC), the Federal Communications Commission (FCC), the U.S. Postal Service (USPS), the U.S. Postal Inspection Service (USPIS), the National Association of Consumer Agency Administrators (NACAA), the National Consumers League (NCL), AARP, the Better Business Bureau (BBB), the Consumer Federation of America, the National Association of Attorneys General (NAAG) and the National Foundation for Credit Counseling, Inc.

"Springboard is proud to be a partner in sharing the message of the sixth annual National Consumer Protection Week campaign," said Wilkman. "Our goal is to provide consumers with information that can help them manage their personal finances and make smart buying choices."

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Ring In The New Year With A Financial Check-Up
Springboard Provides Tips To Make Financial Success Your Resolution For 2004

RIVERSIDE , CA – New Year's resolutions. A tradition among many… a time to re-evaluate, wipe the slate clean and make a fresh start. Many resolve to go to the gym, find a new job or spend more time with their family. But for millions of Americans, the New Year is a good time to analyze their financial health and determine what changes they'll need to make to reach their financial goals.

Springboard, a non-profit consumer credit management organization, recommends that all consumers include the goal of achieving personal financial success among their New Year's resolutions. While it may be hard for many to see a way out of their debt, with a little work and self-discipline, consumers can improve their financial situation.

“January is always a tough time financially for families who relied on their credit cards to make it through the holidays,“ said Dianne Wilkman, president and CEO of Springboard. “We recommend that consumers take some time during the holidays to put their financial life in order and start 2004 off on the right foot.”

Springboard encourages consumers to follow several easy tips to help improve their finances in 2004. Their recommended resolutions include:

•  Make A Budget – Start by determining how much money you take home every month. Then list your monthly bills. This should give you a good idea of how much you have to spend on food, gas, clothes, entertainment and other expenses. The key to maintaining a successful budget is to make sure you don't spend more than you make. If you live beyond your means and use your credit cards often, then you could be on the road to financial troubles.

•  Take Your Financial Pulse – Review your credit report to give you a good idea of where you stand financially. If you are thinking of taking out a loan or refinancing your home, its especially important to know your credit risk score and the impact it has on how lenders view your application . Springboard's partnership with myFICO SM helps you easily obtain and understand your credit report – just log onto www.credit.org for information.

•  Check For Fraud - It's also important to check your credit report for any suspicious activities such as new credit cards you haven't applied for or delinquent accounts . These could indicate you've become the victim of identity theft – an increasingly common fraud that can ruin your credit rating if not discovered and reported. New laws passed in 2003 give consumers greater protections.

•  Take Care of Outstanding Debt – A big resolution is to meet the credit obligations you have made on time. You will eliminate a lot of stress if you get caught up on your bills and debt payments. Also, your credit rating will improve dramatically if you stay on top of your long-term obligations.

•  Reduce Your Spending – Too often we base our buying decision on emotions instead of facts. Walk away from the purchase and wait a week to see if you still want or need the item. If you decide to buy, then check around to see if you can get it for less somewhere else. It may be hard but if you spend money ONLY on what you need, you will significantly reduce your expenses.

•  Save For Tomorrow – According to many media reports, the economy has improved in late 2003. If you don't already have one, start a savings account and deposit a set amount each pay period. A healthy savings account prevents you from having to borrow money when emergencies happen. The rule of thumb says to have three to six months of living expenses socked away. That may seem like a lot but you can start saving a little at a time and build up your nest egg slowly. Another way to add to your savings account is to reduce your tax withholdings and have the extra money automatically deposited in your savings account.

•  Seek Professional Credit Counseling Assistance If You Need Help – If you find yourself over-obligated and in over your head, there is no shame in seeking help from experts. Credit counseling organizations, such as Springboard, offer settlement and debt reduction services and can help identify where you may have gone wrong to help steer you back into the right direction.

Springboard, a nonprofit, credit counseling and education organization founded in 1974, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council on Accreditation of Services for Families and Children, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies that ensure low-cost confidential services performed in an ethical manner. Springboard is a member of the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. Springboard has several Southern California counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-947-3752 ext 702 or visit their web site at www.credit.org.

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Springboard's Consumer Tips to Keep Holiday Shopping Jolly and Free of Debt Stress

Riverside , CA – As many families and individuals prepare for the Thanksgiving holiday, others will be waiting anxiously for the day after – Black Friday, which launches the official holiday shopping season. Springboard Non-Profit Consumer Credit Management offers consumers money management advice to keep the holiday shopping season jolly and free of debt stress.

“Holiday gift-giving can be a wonderful experience, especially when you are able to bring joy to someone else's life without wrecking your own because of overspending,” says Dianne Wilkman, President/CEO. “There's no joy in poor money management skills that result in overspending and deep debt. Therefore, our gift this holiday season is the gift of information and advice to help consumers overcome deep debt and maintain good financial health.”

Springboard offers free and educational tips to the many holiday shoppers who will add to the projected holiday sales of $217.4 billion; six percent over last year, according to the National Retail Association.

Springboard's Consumer Tips for a Jolly and Debt-Stress Free Holiday Shopping Season:

•  Develop a spending budget: Write down household and personal expenses for November and December. For each month, subtract the total amount of expenses from your monthly take-home pay. The amount left over each month becomes a starting point to gauge how much you can afford to spend. Make a list of purchases from gifts to decorations.

•  Boost your holiday spending account: Look for ways to make overtime pay at work. Look for seasonal, part-time employment and consider using part of any holiday bonus to offset expenses. Cut down on other expenses like food and entertainment when possible.

•  Consider creative gift-giving: When it comes to gifts, some people still believe: It's the thought that counts. Consider gifts that have a personal touch, such as handmade and homemade gifts like tapestries, quilts, pastries or other prepared foods. Don't forget about fruit baskets, which are both economical and healthy.

•  Look for shopping deals: Check out retail sales, special discounts, coupons in circulars or newspapers and deals online. Consider purchasing holiday decorations in-bulk and splitting the costs with friends and family members. These deals can add up to substantial savings.

•  Avoid last-minute shopping: Shopping under stress can lead to more spending. Plan your shopping trips in advance and shop as early as possible before the December holidays. Avoid shopping for convenience, which may not be most economical.

•  Pay with cash when possible and spend wisely. Stick to your spending limit! Pay with cash when possible and leave your checkbook and credit cards at home to avoid temptations for unplanned and unnecessary purchases. If using credit is a must, limit purchases to one card. Use the credit card with the lowest interest rate and don't use more credit than you can afford to pay off in 90 days or less. Remember, credit card debt amounts to a short-term loan. The longer the length of the loan, the more you will pay.

•  T'is the season to be jolly, not vulnerable: An increase in the use of credit cards, can also lead to an increase in the opportunities for identity theft. Avoid becoming a victim of identity theft: order a copy of your credit report from the three major credit bureaus once or twice a year to verify that the information reported is accurate. Avoid exposing credit cards, social security numbers and other personal information to others when shopping. If a credit card is lost or stolen, report it right away to the credit card company. Ask for a written list of the latest charges to verify authorized purchases. Unauthorized charges should be disputed immediately in writing . OPTIONAL: For more on credit information, visit Springboard's consumer education website at: www.credit.org .

•  Avoid the post-holiday debt hangover and don't overspend: Tally the receipts from all holiday expenses, including gifts, postage, meals, entertainment and decorations. Once you've completed your shopping list, stop shopping! More mall time can amount to more spending. Those who have kept to their budgets will start the year with less debt and less stress. Adopt and practice a new resolution to keep your household budget balanced for the next 12 months. You may soon discover that managing your money doesn't have to be a painful chore in 2004!

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If the Check's in the Mail -- Springboard Offers Tips for Getting More Mileage Out of a Tax Refund

Riverside, CA - April 1, 2003 - Almost three out of every four taxpayers will receive a tax refund this year, averaging more than $2,050, according to the Internal Revenue Service. But history indicates that the majority of consumers will spend their reclaimed money less than a month after receiving it.

Springboard Non-Profit Consumer Credit Management cautions consumers to avoid excessive spending, especially during a time when the nation is at war and the economy remains unstable. Instead, consumers should consider treating their tax refunds as unexpected income, which offers an opportunity to enhance their bottom line through various debt reduction and savings alternatives.

"Consumers often overlook simple ways they can save money and reduce their existing debt load," says Springboard President & CEO Dianne Wilkman. "Understanding the best ways to manage money is crucial for consumers to achieve long-term financial health and Springboard is available to assist consumers in understanding various options, including prudent alternatives to spending their tax refunds."

Wilkman suggests consumers consider applying these ideas to their tax refund uses.

• Pay down credit card debt, starting with the highest interest accounts. Remember, a credit card debt is another form of an unsecured loan. The longer the life of the loan, the more money you'll pay for borrowing the money.
• Make an additional payment on secured debt such as your mortgage or automobile. Applying an extra payment to your principle shortens the length of these loans as well. If you're saving to purchase a home, your refund is a great way to boost your down payment.
• If you're an entrepreneur - why not put the funds towards your next tax payment?
• Is your "rainy day" fund experiencing a drought? Boost your savings by depositing funds into an interest bearing savings account or a money market fund. Remember to always plan ahead for emergencies and unexpected purchases. You never know when the washing machine or refrigerator will call it quits!
• Also consider contributing to an IRA or other existing retirement fund. And if you're planning to pay college tuition in the future, consider investing in a 529 college savings plan.
• These tax refund tips won't expire after the tax-filing year. If you're planning for next year, be sure to apply them for 2003.
  While there are lots of things that can be done with a tax refund, the temptation to spend the money unwisely is always ever-present. However, gaining ground on your finances and reducing debt can be far more satisfying than hasty and unplanned purchases that may cause additional debt burdens later.
  
  

  Springboard, a non-profit consumer credit counseling service and member of the National Foundation for Credit Counseling, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council on Accreditation of Services for Families and Children, with counseling locations offering face-to-face, online and nationwide phone counseling services. For more information on Springboard, call 1-800-WISEPLAN (800.947.3752).
  Contact: Dianne Wilkman
  Phone: 800-947-3752, ext. 702
  Email: Dianne@credit.org
  

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  New Federal Tax Rules Can Boost Tax Savings & Reduce Debt

  SPRINGBOARD NON-PROFIT CONSUMER CREDIT MANAGEMENT OFFERS VALUABLE TIPS FOR KEEPING MORE MONEY IN YOUR POCKET AT TAX TIME

  March 11, 2003 Riverside, CA - While consumer confidence is at an all-time low, some 2002 tax refunds could reach an all-time high, due to recent changes in federal tax regulations. From earned income and home sales to education and child adoption credits, new federal tax rules could put more money back into the household budgets of many individuals and families.

  Consumers can benefit from several advantageous tax changes and SPRINGBOARD, a member of the National Foundation for Credit Counseling, Inc., (NFCC) a nonprofit organization that provides quality credit counseling, debt reduction services and financial wellness information, recommends consumers investigate various tax credits that could be profitable to their bottom line, including state income tax credits that may have changed.

  "There are several changes in the federal tax laws for 2002 that offer consumers new opportunities to pay down debt and increase savings," said Dianne Wilkman, agency CEO. "Helping consumers understand beneficial tax regulations is one of many ways NFCC member agencies such as SPRINGBOARD are working with consumers to improve their financial knowledge and money management skills. Our goal is to help consumers get more mileage out of their tax refunds and enhance their financial wellness."
  SPRINGBOARD suggests consumers check tax forms or consult with IRS representatives or tax specialists on eligibility for these and other federal tax credits.
  Among the new federal tax reforms Congress passed for the 2002 tax year are adjustments to Earned Income Tax Credit (EITC), a tax credit for individuals and families intended to offset the cost of Social Security taxes and provide an incentive for low-income taxpayers to work. To be eligible for a full or partial credit, a single taxpayer with two or more children must have an adjusted gross income of less than $33,178. The income level is different for those with one child or no children and couples who are married, filing jointly. Eligible foster children must live with a guardian more than half a year, reduced from a one-year rule. Earned income no longer includes nontaxable income such as supplement military payments for housing or combat pay. Consumers are encouraged to speak to a professional regarding other tax changes and eligibility under the EITC. Taxpayers who qualify for the EITC may also be eligible for free income tax preparation and electronic filing by participating tax professionals.
  The Home Sale Exclusion Rule, which applies to excluding gain on the sale of a principal residence, is available for qualifying sellers. Under this rule, the maximum exclusion amount of $250,000 ($500,000 for a married couple filing jointly) is limited to the percentage of the two years that individuals fulfilled the requirements. Thus, a qualifying seller who owns and occupies a home for one year (half of two years) - and who has not excluded gain on another home in that time - may exclude half the regular maximum amount, or up to $125,000 of gain ($250,000 for most joint returns). The proportion may be figured in days or months.

  Consumers should also be aware of changes to education related tax incentives, including an increase in the contribution limit for Coverdell Education Savings Accounts. Though ESAs, formerly known as Education IRAs, do not give immediate tax benefit, they allow beneficiaries to accrue tax-free earnings for qualifying educational expenses. Several changes to the contribution rules have occurred, most notably, the increase of the annual contribution limit to $2,000 per beneficiary, up from $500. The income eligibility for most married contributors filing jointly is now $190,000. Corporations, tax-exempt organizations and other entities may now contribute to Coverdell ESAs, regardless of income level.

  Additionally, three education deductions, under the new Education Incentives, are now available adjustments for taxpayers filing either Form 1040 or 1040A. Specifically, Tuition and Fees Deduction - which allows most taxpayers with adjusted gross incomes up to $65,000 ($130,000 on a joint return) to deduct up to $3,000 for tuition and fees paid to attend an accredited college, university or vocational school. There are restrictions and consumers should be careful to review the changes. Also new is the Student Loan Interest Deduction - where interest on student loans for higher education may now be deducted whenever paid and regardless of the age of the loan. Prior to 2002, only payments made during the first 60 months of the required repayment term counted. Voluntary payments, for example, that were made prior to the student's graduation, did not previously qualify. Now this deduction is available to most taxpayers with incomes up to $65,000, with the deduction amount phasing out as income increases above $50,000. For married couples filing jointly, the phase-out range is from $100,000 to $130,000. Finally, educators who work at least 900 hours during a school year as a teacher, instructor, counselor, principal or aide, may take advantage of a Deduction for Educator Expenses whereby they may deduct up to $250 of qualified out-of-pocket expenses for books and classroom supplies. Persons in public or private elementary or secondary schools (including kindergarten) can apply. Educators must reduce qualifying expenses by any nontaxable earnings received from Coverdell ESAs, qualified tuition programs or educational savings bonds.

  The 2002 tax year saw other federal tax law changes consumers should also review. Among them, the value of the Adoption Credit for qualified adoption expenses doubled to $10,000 for 2002. More taxpayers will be eligible for this credit as the modified adjusted gross income (AGI) limit was increased. Now a taxpayer can have a modified AGI of up to $150,000 without having a reduction in the adoption tax credit. Qualified adoption expenses include reasonable and necessary adoption fees, court costs, attorney fees, travel expenses and other expenses directly related to the adoption of an eligible child. Standard Mileage Rates were increased to 36.5 cents a mile for business miles and 13 cents a mile for travel related to qualified medical and moving expenses. And, consumers may now take advantage of Higher Contribution Limits for Roth and Traditional IRAs. For 2002, taxpayers may contribute up to $3,000 ($3,500 if age 50 or older at the end of 2002) to either traditional or Roth IRAs. This figure is an increase from a $2,000 limit in the prior year. Contributions for 2002 can be made until the due date for filing your return for that year, not including extensions.

  All federal tax forms, instructions and publications are available by calling 1-800-TAX-FORM (1-800-829-3676). The IRS TaxFax offers forms and instructions by return fax - call 703-368-9694 from a fax machine.

  Expecting a Tax Refund? Don't blow it on unnecessary spending. Seek helpful money management advice on ways to reduce debt and save more money in the future from SPRINGBOARD.

  About Springboard
  Springboard, a nonprofit, credit counseling and education organization founded in 1974, offers assistance with money management and budgeting through confidential counseling, debt management and education programs for financially troubled consumers. Springboard is accredited by the Council on Accreditation of Services for Families and Children, signifying high standards for agency governance and fiscal integrity, counselor certification and service delivery policies that ensure low-cost confidential services. Springboard is a member of the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies. Springboard has more than 25 Southern California counseling locations offering face-to-face, online and nationwide phone counseling services.

  For more information on Springboard
  call 800-947-3752 ext 702
  web site : www.credit.org
  

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  Is Your Family Financially Prepared For War?

  As war with Iraq approaches, America's troops and military reservists are leaving loved ones behind - an unwelcome state of affairs that forces service members and their families to make agonizing decisions that potentially have lifelong ramifications. While many troops have chosen to freeze their sperm - a precaution against the possibly harmful effects of chemical weapons exposure on their fertility - too few servicemen are taking the more important precautions to avoid financial hardships.
  Although the defense budget increased this year, only a small portion of that increase is designated for troop pay. Reservists especially will face significant pay cuts as they leave their civilian jobs and return to active duty. These financial hardships can be eased with careful planning and good communication skills.
  To help prepare our troops for deployment to the Persian Gulf, Springboard Non-Profit Consumer Credit Management is distributing recommended tips for military reservists and active service members and their families.
  Cash Reserves: It's a good idea to have six months worth of savings in the bank. Look at your budget, identify the necessities that you need to keep your household going and start putting away cash reserves in case of a household emergency. The last thing you want is to have a crisis at home while you're fighting a crisis abroad!
  Credit Cards: The Sailors and Soldiers Act of 1940 is a tool for activated reserve members. It allows for activated military to have their interest rates lowered to 6% while they are on active status. Contact your creditors BEFORE you are activated to get the necessary paperwork ready once you are called up.
  Power of Attorney (temporary): Many people don't know that you can make Power of Attorneys temporary and specific. For example, you can give Power of Attorney to your spouse or parents only for the duration of your activation and only for the purpose of managing and paying bills from your bank account. Contact your base Legal Resource office for details.
  Important Documents: Let loved ones know where your important papers are. This includes bank statements and insurance papers for car, health, home and life.
  List of Creditors: Make a list of contact information for your car, mortgage and credit card companies: phone and fax numbers, email and website information. If there's a problem while you are away from home, a trusted family member will be able to handle it better with the right information at hand.
  Anticipate New Costs: Little things like long distance phone calls can add up. Most bases and ships provide phones for personal use - but make sure you KNOW the rates before you call. If you have doubts, buy a pre-paid phone card or compare rates of different long distance carriers. Many ships are serviced by AT&T while the land bases vary. Many servicemen and women returned from the Gulf War with thousands of dollars in long distance charges.
  Review your Policies: If you use an insurance or loan company that services military families they may have additional services available to you if you are deployed or activated to your reserve unit. Call them and find out now.
  Use Technology: While you're activated and out of touch, use email, direct deposit and Bill Pay to keep things moving forward.
  Taxes: If there is even a remote possibility that you will be deployed when tax time rolls around apply for an extension as soon as possible. Use Form 2350: Application for Extension of Time to File U.S. Income Tax Return. It can be downloaded at: www.irs.gov
  Dianne Wilkman is the President and CEO of Springboard, a non-profit consumer credit management, a member of the National Foundation for Credit Counseling.
  

  For more information on Springboard
  call 800-947-3752 ext 702
  web site : www.credit.org

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  What To Do If You Owe Taxes…

  March 21, 2003

  Riverside, CA
  First of all, Springboard recommends that you break even or owe a little rather than getting a tax refund. Keep your money in your own pocket all year and add to savings or repay debt instead of letting the government keep it interest free. However, if consumers find they are in tax debt and can't pay it off all at once, here are some points to consider:

• You can run but you cannot hide. It is important for consumers to resolve tax debt, or levies, because the government has powerful collection remedies, including garnishment, forced sale of one's home, and mandatory repayment plans with large penalties and fees. Consumers who have other debts that can be consolidated in a Debt Management Plan through a credit counseling organization could have their plan endangered by tax levies if they result in a garnishment.
• It may be better to pay tax debts with a credit card! Not only can you get a better interest rate (depending on your credit), if you get into trouble, the credit card companies will be more flexible with a repayment plan, without set up fees. Plus, if things get really bad, you can discharge credit card debt in bankruptcy, whereas you can't discharge IRS debts (with a few exceptions).
• Springboard is approved by the IRS and Franchise Tax Board to provide repayment plans for tax liens. Springboard has a formal program of cooperation with the IRS called the IRS Advocacy Program. This program helps consumers repay their tax debts on an installment basis. Springboard also has a similar relationship with state taxing departments.
• How much does it cost to use Springboard's tax repayment services? By law, the IRS charges a one time fee of $43 to set up a tax debt repayment program - and there are penalties and interest. If it is appropriate to set up a Debt Management Plan, there are nominal fees for set-up and for monthly disbursement to all of the consumers' creditors.
• Many credit counseling organizations cannot or will not handle tax liens because they are costly to administer and they do not receive any funding for this. Springboard's philosophy is to provide a holistic solution and to help manage all of a consumer's debts.
• Incurring tax levies can be a sign of an underlying money management and budgeting issues. Springboard can help consumers find a solution to their financial problems and create a household budget that will provide for all debt obligations.
• With bankruptcies on the rise, more consumers are being told, sometimes mistakenly, that they will be taxed on the forgiveness of the debts that they discharged through bankruptcy or through a sale of a home at less than the mortgage amount. Springboard can help consumers avoid bankruptcy by having them take a hard look at their financial "lifestyle," structuring a monthly budget and having them stick to that budget. Springboard helps consumers with each stage of this process, giving them the power and responsibility to move beyond their financial problems.

  Dianne Wilkman is the President and CEO of Springboard, a non-profit consumer credit management, a member of the National Foundation for Credit Counseling.
  

  For more information on Springboard
  call 800-947-3752 ext 702
  web site : www.credit.org

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  Avoid The Holiday "Debt" Trap

  RIVERSIDE, CA ? In the spirit of the season, credit card companies are cutting interest rates just in time for Holiday spending. According to the National Retail Federation (NRF) 27% of holiday shoppers will use credit cards to pay for purchases. But with personal bankruptcy's hitting an all time high, what the credit card companies are really offering you is a gift that keeps on giving - Debt. To help keep the merry gifts flowing while keeping your pocketbook in check this year, Springboard, a non-profit credit counseling organization, offers five easy tips:

  • Santa's List - Make a list of whom you are buying gifts for this year and estimate how much you'll need to spend.
  • Set a Budget - After you estimate your gift spending, check to make sure your gift ideas fit into your budget.
  • Buddy-up - If a big gift item is blowing your budget, partner up with a relative to split the cost. It not only saves 50% but it saves time too.
  • Be Creative - If you have more time than money - make something. Collect baby photos from relatives, make color copies and organize them in an album.
  • Avoid Last Minute Shopping - It's inevitable so be prepared! Buy gift certificates for places everyone likes to shop, like the local bookstore or music place. You'll never be caught without a gift and you can control your spending!

  "By establishing budget priorities and being proactive, you can give yourself the best gift of all - freedom! Financial freedom from credit card bills and debt." said Dianne Wilkman, President and CEO of Springboard. "You don't want the debt to outlast the gift."

  Contact: Scott Maloni
  Phone: 1.619.231.0996 ext. 323
  Email: smaloni@tomshepard.com

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  Ring In The New Year With A Financial Check-Up

  RIVERSIDE, CA - New Year's resolutions. A tradition among many… a time to re-evaluate, wipe the slate clean and make a fresh start. Many resolve to go to the gym, find a new job or spend more time with their family. But for millions of Americans, the New Year is a good time to analyze their financial health and determine what changes they'll need to make to reach their financial goals.

  Springboard, a non-profit consumer credit management organization, recommends that all consumers include the goal of achieving personal financial success among their New Year's resolutions. While it may be hard for many to see a way out of their debt, with a little work and self-discipline, consumers can improve their financial situation.

  "January is always a tough time financially for families who relied on their credit cards to make it through the holidays," said Dianne Wilkman, president and CEO of Springboard. "We recommend that consumers take some time during the holidays to put their financial life in order and start 2003 off on the right foot."

  Springboard encourages consumers to follow several easy tips to help improve their finances in 2003. Their recommended resolutions include:

  • Make A Budget - Start by determining how much money you take home every month. Then list your monthly bills. This should give you a good idea of how much you have to spend on food, gas, clothes, entertainment and other expenses. The key to maintaining a successful budget is to make sure you don't spend more than you make. If you live beyond your means and use your credit cards often, then you could be on the road to financial troubles.
  • Take Your Financial Pulse - Review your credit report to give you a good idea of where you stand financially. Credit counseling organizations such as Springboard can help you obtain and understand your credit report.
  • Settle Outstanding Debt - A big resolution is to meet the credit obligations you have made on time. You will eliminate a lot of stress if you get caught up on your bills and debt payments. Also, your credit rating will improve dramatically if you stay on top of your long-term obligations.
  • Buy Only What You Need - Too often we base our buying decision on emotions instead of facts. Walk away from the purchase and wait a week to see if you still want or need the item. If you decide to buy, then check around to see if you can get it for less somewhere else. It may be hard but if you spend money ONLY on what you need, you will significantly reduce your expenses.
  • Save For Tomorrow - Start saving money. If you don't already have one, start a savings account and deposit a set amount each pay period. A healthy savings account prevents you from having to borrow money when emergencies happen. The rule of thumb says to have about three months of living expenses socked away. That may seem like a lot but you can start saving a little at a time and build up your nest egg slowly.
  • Seek Professional Credit Counseling Assistance If You Need Help - If you find yourself over-obligated and in over your head, there is no shame in seeking help from experts. Credit counseling organizations, such as Springboard, offer settlement and debt reduction services and can help identify where you may have gone wrong to help steer you back into the right direction.

  Contact: Scott Maloni
  Phone: 1.619.231.0996 ext. 323
  Email: smaloni@tomshepard.com

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  Financial Boot-Camp For Our Troops

  RIVERSIDE, CA - As the possibility of war with Iraq becomes an increasing reality, America's troops and military reservists are preparing to leave loved ones behind - an unwelcome state of affairs with inevitable financial repercussions. Although the defense budget ballooned this year only a small portion of that is designated for troop pay. Reservists especially will face significant pay cuts as they leave their civilian jobs and return to active duty. These hardships can be eased with careful planning and good communication skills.

  To help prepare our troops for possible deployment to the Persian Gulf and the Horn of Africa, Springboard Non-Profit Consumer Credit Management is distributing recommended tips for military reservists and active service members and their families.

  • Cash Reserves: It's a good idea to have six months worth of savings in the bank. Look at your budget, identify the necessities that you need to keep your household going and start putting away cash reserves in case of a household emergency. The last thing you want is to have a crisis at home while you're fighting a crisis abroad!
  • Credit Cards: The Sailors and Soldiers Act is a tool for activated reserve members to have their interest rates lowered to 6% while they are on active status. Contact your creditors BEFORE you are activated to get the necessary paperwork ready once you are called up.
  • Power of Attorney (temporary): Many people don't know that you can make Power of Attorneys temporary and specific. For example, you can give Power of Attorney to your spouse or parents only for the duration of your activation and only for the purpose of managing and paying bills from your bank account. Contact your base Legal Resource office for details.
  • Important Documents: Let loved ones know where your important papers are. This includes bank statements and insurance papers for car, health, home and life.
  • List of Creditors: Make a list of contact information for your car, mortgage and credit card companies: phone and fax numbers, email and website information. If there's a problem while you are away from home, a trusted family member will be able to handle it better with the right information at hand.
  • Anticipate New Costs: Little things like long distance phone calls can add up. Most bases and ships provide phones for personal use - but make sure you KNOW the rates before you call. If you have doubts, buy a pre-paid phone card or compare rates of different long distance carriers. Many ships are serviced by AT&T while the land bases vary. Many servicemen and women returned from the Gulf War with thousands of dollars in long distance charges.
  • Review your Policies: If you use an insurance or loan company that services military families they may have additional services available to you if you are deployed or activated to your reserve unit. Call them and find out now.
  • Use Technology: While you're activated and out of touch, use email, direct deposit and Bill Pay to keep things moving forward.
  • Taxes: If there is even a remote possibility that you will be deployed when tax time rolls around apply for an extension as soon as possible. Use Form 2350: Application for Extension of Time to File U.S. Income Tax Return. It can be downloaded at: www.irs.gov.

  Contact: Scott Maloni
  Phone: 1.619.231.0996 ext. 323
  Email: smaloni@tomshepard.com

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  Sports Gambling Contributes to Nation's Growing Bankruptcy Rate

  SAN DIEGO, CA - Although it can start out as innocently as joining the office football pool or an afternoon at the race track, sports-related gambling has risen to record heights in recent years, leading to an unprecedented number of bankruptcy filings for thousands of Americans.

  "With the NFL season in full-swing, credit card companies are bound to see a spike in credit card cash advances that will finance both legal and illegal gambling," says Dianne Wilkman, President and CEO of Springboard, a non profit credit counseling firm based in Southern California. "Thanksgiving day, and its traditional prime time football games, is always a big day for gambling."

  According to Nevada casino operators, sports-related betting has become a $2 billion per year industry. The Super Bowl weekend alone can account for as much as $70 million in wagers. Today, the Internet is making it even easier for those that don't live in states with legal sports betting to participate. Consumers are increasingly being bombarded with pop-up ads touting the ease of gambling from home using their credit cards.

  According to financial web site, Bankrate.com, 90 percent of online gambling accounts are opened with cash advances from credit cards. Banks typically charge interest rates of 20 percent or more for such loans and there is no grace period.

  Despite the large profit margins that online gaming provides, some carriers like Citibank and Providian, with urging from New York State's attorney general, have begun blocking charges from online gaming sites. Even Paypal exited the Internet betting market after its purchase by EBay. Many carriers site the liability risks when clients challenge charges from these off-shore betting sites.

  But blocking these sites doesn't stop consumers from using credit card cash advances to fuel their gambling obsession. This type of credit card abuse is a fast track to bankruptcy. "With cash advance interest rates as high as 20%, it's not surprising that 20% of all bankruptcies filed were gambling related," said Wilkman A National Academy of Science Research Council study, using information provided by bankruptcy attorneys and court appointed trustees, showed that the average gambler owed more than $40,000 in unsecured debt and possessed an average of 8 credit cards with balances of $5,000 to $10,000 each.

  "We applaud the steps that New York's attorney general and Citibank have taken to curb online gambling and encourage other states and lenders to follow this example. Most consumers don't fully realize what the actual costs of online gambling are to them, but with high interest rates and no grace period, cash advances are the number one way that gamblers get into financial