Manage Your Credit & Identity

Finances: An Honest Look

My finances weren’t always in great shape – too much debt, weak savings, with some self-indulgent spending for good measure. To stay on top of my finances, I have had to take the occasional “honest look”. I think of it as a 3-way mirror view of my situation. By that, I mean that enlightening view you get in the department store changing room where you find out how people see you from the back on a bright, sunny day.

First, I encourage you to step in front of that mirror and take an honest look at your spending and debt. You may want to stick your head in the sand. Please don’t. I can assure you that no matter where you are with your money, with action you can firm up your finances.

You need to ask yourself these questions:

Are you using credit cards for your basic expenses?
Are you making multiple transfers from savings to cover your checking account?
Are your wages running out before the end of the month?
Are you avoiding your bills by not opening your mail or emails?
Are you only making partial payments on utilities and credit cards?
Are your credit card balances going up versus down?

Answer these questions honestly – either alone or with the person you share your finances. Again, Be Honest. You may be thinking, “It’s the economy” or “I wouldn’t be in this situation if not for…” You have to face the reality that is, not what should have been. You cannot change the past. All you can do is to pull your head out of the sand and address the issue now by taking action.

The first thing to do is to track your spending. Keep a list of all that is coming in (income) and going out (expenses). That is the only way you can determine how much of a shortfall you have.

Once you know, you can begin to make changes. You will see where your money is going and can cutback and eliminate unnecessary spending. If you need help, I offer coaching packages that can get you through this.

You want to take action on the overspending now, Trust me, in my 20s I had maxed out many credit cards and had to pay off all that debt. At times, I worked three jobs and it seemed like it would never be paid off, but I did and you can too. The sooner you start the better off you will be.

Start today before it’s too late, and it snowballs into something so big that you cannot manage it, and the only answer is bankruptcy.

It’s time to order your report

It’s January 2014 –
Time to Order Your First Credit Report of the Year
This month use Experian

Hello, it’s Jill again, reminding you to get your finances in order for the New Year by checking your credit report.

How to Order Your Credit Report

Order your credit report from www.AnnualCreditReport.com – the ONLY authorized source your no-cost annual credit report that’s yours by law. Learn more.

When ordering online – visit www.AnnualCreditReport.com:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select Experian.

Not comfortable ordering online? There are other ways to order your report:

Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

Were you hoping to get your credit score instead? Try CreditKarma.com. CreditKarma does not supply a FICO score, but it does provide scores from TransUnion and VantageScore. And, there’s no charge for you. CreditKarma funds their service through website advertising.

May you have a wonderful and successful year!

P.S. I’ll send you another reminder in May and September to help you stay up-to-date on your credit throughout the year.

New rules for stopping robocalls

When you get a robocall, should you…

hang up right away
follow the instructions for removing yourself from their call list
try to get through to a real person, then shame them for calling when you’re on the “Do Not Call List”

Although “C” was tempting, I used to do “B” thinking that it was the most logical way to get the calls to stop. But the calls actually increased! How could that be?

It’s because some of these calls are from fraudulent companies who have no interest in following FTC regulations.

Like many of you, we’re on the Do Not Call Registry. (If you’re not, do this today at DoNotCall.gov.) It stops most unsolicited calls. The calls we do receive are from scammers like “Rachel from cardholder services” and the new “Life Alert” phishing scam.

While it does help to report these calls to DoNotCall.gov, you should know that some originate from outside the US, which makes it difficult for the FTC to prosecute them. It doesn’t help to try to remove your number from their call lists, because they don’t actually have a list. They’re just dialing random numbers hoping to get a live line. In fact, any interaction on your part could actually put you on a call list!

If you want to keep track of calls that violate FTC regulations, you can put in a formal complaint on the Do Not Call website or by calling 888-382-1222. We’ve started to do this. In fact, I did this yesterday as I received a robocall on my cell phone – which is against FTC regulations in every state no matter the circumstances.

Calls you shouldn’t report to DoNotCall.gov

Political campaigns
Charities
Companies that you do business with

Unless they’ve called your cell phone, it’s perfectly legal for companies to call you for these purposes. If you report them, you’re just wasting the FTC’s time, which is unfortunate around election time and the holidays.

While doing the research for this post, I came across some interesting tips for stopping the calls. Some people are suggesting starting your voicemail message with the three tones you hear when you call a disconnected number. Do you think the robocallers have programmed their systems to ignore disconnected phone numbers? I’m not so sure, but it’s a fun idea.

Let me know what you are doing to eliminate unwanted phone calls from your life.

Financial Housework: Deciding What to Clean First

Have I ever had credit card debt? Yes! There have been times in my life when I haven’t been able pay my balance in full when the bill arrives.

Credit card debt is the enemy of a good budget, but life happens. Even the best budgeter can have unplanned expenses.

According to a recent study by Trans Union, the average US adult carries $4,878 in credit card debt. That doesn’t include zero percent balances. That means the average US adult owes almost $5,000 plus the additional interest.

If this is you, I want you to take a deep breath. Debt repayment is just financial housework. There’s nothing to be afraid of here.

Do you know what’s really scary? Having company due in 5 minutes when the bathrooms aren’t clean. When that happens, do you lock the front door and pretend you’re not home? No! You walk into the bathroom and decide which part needs to be cleaned first (just in case you run out of time before the doorbell rings).

That’s right. I just compared paying off credit card debt to scrubbing the toilet. That’s because you want to use the same thought process with your credit cards. Some cards will need more attention than others, so you need to make a list of your debts which includes the interest rate and minimum payment amounts.

There are two methods to setting priorities on your credit cards.

Option 1: Pay the highest interest rate first. Your list will look something like this:

Priority	Interest Rate	Minimum Payment	Current Balance
Card #1	19%	$100	$5,025
Card #2	15%	$47	$2,141
Card #3	11%	$177	$9,056

This is the best option if you want to save money. Using the example above, you pay as much as your budget will allow on card #1, and only the minimum on cards #2 and #3. When #1 is paid off, you make card #2 the highest priority. Rinse and repeat until all cards are paid in full. When you pay the highest interest rate first, you pay less overall.

Option 2. Pay the smallest debt first. Your list will look something like this.

Priority	Interest Rate	Minimum Payment	Current Balance
Card #1	15%	$47	$2,141
Card #2	19%	$100	$5,025
Card #3	11%	$177	$9,056

This option is good if you need to see results to stay motivated. Receiving a bill with $0 due is really satisfying. A positive emotional boost can really keep the momentum going. You can compare it to housework, dieting, or exercise. We like to see improvements.

Bottom line: You have chosen to get out of debt (your goal) and the actions that will get you there (your plan). You’ll know the best option for you and your family, and you can change tactics whenever you want as long as you’re moving forward.

Let us know which option you choose and how you are doing.

Cards Declined in Copenhagen: Lessons in Travel

In the last edition of my newsletter, you heard about our amazing trip and how we were able to pay for almost everything with points and some smart pre-planning. (You’ll see photos today).

Now, you will hear what didn’t work. This was big lesson for me.

To stay on budget, we used mainly cash. We even bought foreign currency before leaving home. We were able to purchase Crown, Kroner, Euro and Rubles at our local exchange in Connecticut.

But we knew we would want to use credit occasionally, so we called our credit and debit card companies to let them know where we’d be travelling and on what dates (as I’ve told you to do many times).

Imagine our surprise when our cards were declined in Copenhagen. We had dinner with friends and asked the restaurant split the bill between us – half on their card and half on ours. Ours was declined. We knew it wasn’t the machine because they processed our friends’ card first. We could see that theirs worked because the staff at the restaurant actually processes the credit card at your table using a portable machine.

We wondered if it was because we were using our US debit card with a pin. So we ask them to do it again as a credit card. It still didn’t work. The staff said that a lot of US credit cards are declined for some reason.

And, it wasn’t just the restaurant. We tried using the credit card when we checked out of the hotel. Again, declined! It was very embarrassing.

When we returned, I called the credit card company to ask why they wouldn’t accept our transactions. After a lengthy conversation, and several people, they realized that they couldn’t see any of the attempted transactions in their system. Fortunately, I kept the receipt as proof, but even with the evidence right in front of them, they still couldn’t give me an answer.

The mystery continues. Thank goodness for our American Express card. It saved the day.

Remember, no matter how prepared you are. Things can go wrong. Make sure you have a back-up plan when you travel.

Update: A big thanks to Heidi for giving us an explanation! Apparently, their credit card machines are programmed to accept cards originating from countries in the European Union – and nowhere else. I guess that makes things easier for Denmark, but not for tourists! Read her full comment below.

Credit Report Reminder from Jill Russo Foster: Get ready for holiday spending

It’s September – Get ready for the holidays! This month use TransUnion

Hello, it’s Jill again, reminding you to get your finances in order before you start spending for the holidays.

Order your credit report from www.AnnualCreditReport.com. This is the ONLY authorized source for the no cost annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select TransUnion.

Not comfortable ordering online? There are three ways you can order your report:

Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

Wishing you the best for the school year and the coming holiday season!

P.S. I’ll give you another reminder in January so you can get a great start on the New Year.

Ghosting the deceased: Identity Theft Prevention

….

Even after a loved one dies, they’re still not safe from identity theft or more specifically “ghosting.”

It’s reported that $2.5 million deceased Americans become victims of fraud – anything from new credit cards and loan applications to new utilities and cell phone accounts. Just when the family is dealing with their loss, before they’ve even touched the probate issue, they now have to take additional steps to protect their loved ones.

How does it happen?

We give our loved one’s identity to the world on a silver platter. For starters, most of the important identifying information can be found in the obituary.

Full birth name and married name
Mother’s maiden name
Home town
Date of birth
Nearest relatives and their relationships to the deceased
Last place of employment

It’s been reported that thieves take this information and purchase the deceased’s social security number for $10 from the Social Security Office’s Death Master File. With that, they have everything needed to set up new accounts, all while the family is still grieving.

You might be thinking, “Why do I care? It can’t come back on us because the person is dead.” Well, by using your loved one’s information, they can take yours as well. Remember, your name is in the paper too, listing how you’re related to everyone in your family, your probable home town, and your approximate age. At the very least, it will cause the surviving family members stress when new bills arrive at the house along with collection calls.

What can you do about it?

Limit the information listed in the obituary column – in this case less is more

Send copies of death certificates to all three credit reporting agencies, as well as to the banks, investment firms and credit card companies used by the deceased. Ask them to place a “deceased alert” on all accounts – this is especially important if they’re going to stay open until probate is completed.

When closing accounts (including utilities, phone, cable, rental services, etc.), ask them to tag the account as “account closed – holder is deceased.” That way, the account will be flagged as permanently closed. Closing an account may seem final enough, but it’s not. All paid services want you to continue service, so they won’t question a reopen request unless the word “deceased” is on the file.

Report the death to Social Security. If you let it go through normal processes, it can take months – in that time, an identity thief will have set up hundreds of accounts in your loved one’s name.

Cancel the deceased Driver’s License through your state’s Department of Motor Vehicles, so that duplicates will not be issued

Since deceased people don’t check their credit, I would recommend that you request a copy of their credit report from one of the three credit reporting agencies about a month after you’ve taken the above steps – just to double check their account status. Then check again a few months later.

Credit Report Reminder from Jill Russo Foster: Enjoy Summer with fresh financial information

It’s May! Relax this summer knowing you’ve checked your credit! This month use Equifax

Hello, it’s Jill again, reminding you to get your finances in order so you can enjoy a nice summer vacation.

When ordering online:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select Equifax.

Not comfortable ordering online? There are three ways you can order your report:

Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

May you have a sunny and profitable summer!

P.S. I’ll give you another reminder in September so you can get up-to-date on your credit before the holidays.

Spring is the season of… mortgages?

….

So, you were cooped up together all winter and realized you had fallen out of love… with your house. You stared at the same walls and little things started to drive you crazy… like that one crack in the corner, or the picture window without a view. Maybe the bedroom’s too small or the kitchen galley leaves no room to cook.

This is completely normal. Spring is the time of year when people get out and attend real estate open houses hoping to make a meaningful connection with a new home.

This year would actually be a great time to make the leap because mortgage rates are low. You could even refinance to a lower rate. (Don’t be discouraged if you’re underwater and were denied last year, because you might qualify under new regulations.)

First, you should get preapproved so you know what you can afford. The mortgage application process can be tricky. Here are some areas that could cause you trouble:

Poor Credit Score. The average credit score is rising as people are paying more attention to their credit. The better your score, the better your interest rate will be. FICO scores in the mid-700’s will get you the best rate.

Employment History. We all know that these are difficult times, and your employment will affect your application. If you’re newly employed, or there are unexplained gaps in your employment history, it can cause you trouble.

Compensation. This means income. If you’re like most people, your weekly employment check is your only source of compensation. Or, you could have a fluctuating income because you’re self-employed, or work in a field where bonuses and commissions make up the biggest portion of your salary. If that’s your situation, your lender will view your up-and-down income as a red flag. Can you make monthly payments if you have cash flow issues depending on the season?

Down Payment. Gone are the days of the zero down mortgage with 100% financing (meaning the bank gives you a loan for the whole sale price). If you can put a big chunk of cash towards down payment, and still keep a nice buffer in savings for emergencies, you’re going to look really attractive to the lender.

Excessive Debt. This can hurt you two ways – first by lowering your credit score and secondly by giving you a higher debt to income ratio. The lender’s going to wonder if you can make mortgage payments when you have so many other monthly payments on your plate already.

The number 1 thing you can do to avoid these issues, is to plan ahead.

1. Have money in savings to show the lender you can deal with whatever happens.

2. Pay down your debt, but don’t close your credit cards. You need to show you have a current credit history (ideally a minimum of 2 years and 3 creditors minimum).

3. Review your credit reports and correct any errors.

4. Take steps to improve your credit score.

5. Don’t make a big purchase just before taking out a mortgage. Don’t take out a car loan or lease, and don’t make a big purchase with cash. The first increases your debt and the second reduces your savings.

If you take some time to plan for your new mortgage, you’ll get the best interest rate possible for you. This is a great time to take advantage of those new low rates.

Passing the Fees on to You

You know I like to save money, so I was a little disturbed by this news. You may be charged an extra fee when you use your credit card – both in stores and online. I don’t want to confuse you, because there are a lot of “if’s, and’s or but’s”. Where do I start? I want to explain this as clearly as possible.

This will affect your credit cards not your debit cards.
This will affect your Visa and MasterCard, but not your American Express card.
This may only affect your online purchases if you live in, or are visiting, an exempt state. Check the list on consumer-action.org

Why the extra fee?

Because merchants are tired of footing the bill for credit card fees. They get charged up to 4% for every credit card transaction, and that eats into their profits. If they’re a small retailer, it can really hurt their bottom line. They want to make it convenient for you to buy, but the fees can be painful and costly.

What are the rules?

They can’t charge you more than they’re charged. If they pay 1.45% on every credit card purchase, they can’t add more than 1.45% to your bill.
The charges must be clearly posted – in store and online. Look around and be sure to read the small print on checkout. If you’re not sure – ask!

My thoughts on the new fees

I’m not going to stop using my credit cards. Sure, I live in an exempt state, but that’s not why. It’s because I don’t use my cards for everyday purchases so the fees won’t affect my budget in a big way. You know I recommend using cash and debit cards for daily expenses because it will help you stay on budget.

Why shouldn’t we be outraged? Swiping a card is an easy way to pay, but it’s not magic. A lot work takes place in the background – work that must be paid for. Convenience always has a price.

Is it ever worth it to pay the fee?

I think so. I want the added protection offered by credit card companies. I know they will assist me if a company doesn’t make good (like if they go out of business). For me, the choice to decline rental car insurance when I travel far outweighs the cost of the surcharge. I’ll continue to use them for online purchases as well. Credit cards offer added protections for misrepresented and/or never received merchandise. For me, that’s worth it (in certain circumstances.) Some credit card benefits / rewards outweigh the fee.

Ultimately, it’s up to you to make informed choices that are right for you. Like me, you may decide to keep using your cards, but only in certain circumstances.

« Previous Page
1
…
8
9
10
11
12
…
17
Next Page »

It’s January 2014 – Time to Order Your First Credit Report of the Year This month use Experian

It’s January 2014 –
Time to Order Your First Credit Report of the Year
This month use Experian