Money Hacks

A guest post by Dorothy of the Oak view law group

Credit cards are a common financial accessory that people use for their day to day transactions. So it is important that we protect our credit cards. As information technology is booming, scammers are taking advantage of it and are fraudulently stealing credit card numbers. As a result, credit card frauds are leaving people distressed and pushing them towards a severe financial crisis.

Credit cards come with a lot of utilities. But if they are stolen or forged, it takes a heavy toll on your finances. In the U.S. you will find various credit card debt management or consolidation plans. However consolidating debts could ruin your credit score as well. There are many consolidation firms that mislead people with their flashy adverts and a false promise. Confide into them only when you have cross-checked their goodwill. One reason why these credit card frauds are increasing is losing your cards or leaving your receipt after shopping or making any other transactions. This allows credit card fraudsters to access your card numbers. Here are some tips for you for not getting into the trap of fraudsters:

• Make sure you check your monthly statements and evaluate them. You can also use the direct bill payment system through your credit cards to avoid frauds.
• It is very important to protect your Personal Identification Number (PIN) if your card has an access to an Automated Banking Machine.
• Make sure you dispose of all your unwanted cards and destroy them as well.
• In case your card is stolen, report it immediately. Card frauds take place within a few hours after the theft.
• If you suspect a fraud, report it to your credit card company.
• Ensure that your card has security features such as signature panel, hologram, magnetic stripe and embossing.
• Never sign a credit or debit receipt without an amount. If you find blank spaces, mark X or draw a lime across the space.
• You can also go for a registration service. You will have to pay a small fee to manage your credit cards. In case you lose your cards or they get stolen, the service will report this loss and request for new credit cards.

Fraudsters often get access to your credit card from various fraud companies. So never give out your account details to a company who has called you. You can check out the reputation of a company at your local consumer protection office or Better Business Bureau. The moment you lose your credit card report it. Remember that you can never be made liable for any unauthorized charges.

The FTC works for the consumer to prevent credit card frauds and other criminal practices. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Guest Post by Christian Gordun

The holiday hangover is not over yet – most of us still have a stack of holiday shopping bills piled up on our coffee tables or desks to deal with. In a recent post, we addressed one way people can rebound from the holidays and start anew this year, but just like any hangover, the ultimate cure involves more than just one simple trick.

Let’s take a look at some reasons why shoppers often end up with a massive debt headache and arm you with some simple but effective money-saving tips that will help you stick to your budget and avoid the infamous holiday shopping hangover.

The Cause

During the holiday season, shoppers are often rushed to check off all the items on their list and will forgo some of the easiest ways to save money such as checking out competitive prices or using coupons. As they get caught up in the holiday buying frenzy, many are forced to make impulsive purchases while last-minute shopping at stores, instead of researching different options online. The holiday rush causes consumers to forget how much they are spending and rack up massive credit card debt, which has shoppers making New Year’s spending resolutions they know they’ll never keep.

The Cure

Instead of making all those impossible resolutions, we’re going to let you all in on a little secret that will leave you debt-free after every holiday shopping season: you never have to pay full price for anything again! As a result of the recession, more retailers than ever are giving you the chance to save money via online coupon codes and deals. It’s simple, just follow these rules:

1. Go Online: Stop printing and start clicking! If you come across an invalid coupon, it’s easier to find a replacement when you’re shopping online rather than when you’re at a store.
2. Think Outside the Grocery Cart: Step away from the idea that coupons should only be used to buy groceries. There are coupon codes for almost every item that you can buy online – from magazine subscriptions to electronics and flowers.
3. Time it Right: The best online deals are offered three times a month: the very beginning, the very middle and the very end. Online stores post fresh coupons the 1st-3rd of the month, the 14-16th, and the 28th through the end of the month.
4. Avoid Shared Coupons: Avoid using sites that let users post coupons because the likelihood they will be faulty or expired is much higher. Instead use sites which ONLY post coupons that are approved by the retailer.

Coupon Craze is an online coupon code and deal site that will help you follow these coupon commandments. Like we said last time, if you’re hungover, you take aspirin, have a greasy breakfast, get hydrated and sometimes swear that you’ll never do that again! Treat a financial hangover the same way. Create a budget and then stick to it by using online coupons.

Are you ready to make online coupons a part of your shopping routine? Let us know!

About the Author

Christian Gordun is the founder and CEO of Coupon Craze, a free consumer resource with online coupon codes and deals from over 10,000 retailers. He founded the company in 2000 as a hobby, and prior to taking it on fulltime, spent five years as a senior programmer and technical project manager. He received his master’s degree from London Business School in 2008.

Guest Post by Paula Drum

Often, the cheer of the holiday season can be all consuming and shoppers forget that unlike Santa, their budgets are real. The exhilarating high of making a memorable December is quickly forgotten when the next year’s financial hangover settles into our banking accounts.

So what can you do to rebound from the holidays and start anew this year?

This post will provide suggestions to those relying on credit to create a budgeting plan. We’ll begin by taking a look at one potential cause for a financial hangover, and then discuss how to start a credit budgeting plan to alleviate and prevent future financial hangovers.

The Cause

One catalyst for a financial hangover takes the form of credit purchases. Evaluating the total price paid for credit purchases is an area that people often neglect when using plastic. If you don’t pay off your credit card bills in full every month, then you are financing your purchases and need to add in the interest costs to your budget. Budgeting credit purchases based solely on the price paid during checkout can put you in a difficult financial position.

The Cure

If you are a person that relies on credit, you should plan a 2010 credit budget. To create a successful plan, it is imperative that you take the time to research total purchase cost, which includes the retail price plus interest accrued over time. To avoid creating “perma-debt” this credit budget must outline both the total cost of your purchases and how long it will take you to pay off the debt. Before you decide to make a credit purchase, follow these steps:

1. Tally the retail price of your purchases – “The retail cost of this purchase is $219.99”
2. Target a date to pay off your debt = “Based on my budget, I can pay this off in four months”
3. Estimate your total cost plus interest

Of course your total credit card payment will depend on your particular card and the balance you currently have on your card.  But you can estimate your real purchase price with interest to make an informed decision.  Try a loan calculator at a site like Bankrate.com.  After all a credit card line is a form of a loan.  Note that many calculators list the length of time in years. If you plan on paying off the loan in less than 12 months you’ll need to convert it to a fraction of a year (4 months divided by 12 months =.33)

Using the Bankrate.com loan calculator, the total cost to pay for this purchase over four months with a 14.9% interest rate is $226.81 broken into four monthly payments of $57.27.

Making good spending decisions depends on having the right information. By creating a credit budgeting plan, you’ll have complete transparency regarding the total cost of using credit and know exactly when you’ll have a zero balance.

Unfortunately, being able to calculate your total cost plus interest may not always be convenient when shopping. One avenue where you may find a better deal is by researching retailers with alternative payment plans, such as Gettington.com, that provide a choice of payment plans along with a clear breakdown of a total purchase cost and interest paid before you make a purchase.  Transparency in understanding your total cost before you make your purchase enables you to make better budget decisions.

Remember: if you’re hungover, you take aspirin, have a greasy breakfast, get hydrated and sometimes swear that you’ll never do that again! Treat a financial hangover the same way. By creating a credit budget and researching the Web, you’ll be on the road to recovery and well-equipped to avoid future credit headaches.

How do you plan to budget credit purchases in 2010?

About the Author

Paula Drum is General Manager of Gettington.com, an e-commerce retailer that provides three payment options to help customers budget purchases that fit their individual financial needs.

Did you know that 40 percent of couples wait until they are engaged to discuss their finances? According to a recent FICO survey, some even wait a full year after they’re married – likely a statistic that supports the fact that ½ of all marriages, these days, end in divorce!

FICO’s survey also found:

• Women were twice as likely (than men) to choose “a good FICO score” as the most important characteristic in a date while men are six times as likely to choose “good looking” as the most important characteristic in a date. Having an excellent FICO score ranked third – which topped being “rich,” “good looking” and “having great teeth” by both the men and women.
• 20 percent of couples described their partners’ spending habits as “drastically different” from their own and over 45 percent described them as moderately different. (Only 20 percent of couples rated each others’ spending habits the same.)
• Please see the complete survey results and downloadable images, here.

With survey findings like these facing Valentine’s Day, FICO’s Credit Cupid has solutions which will help your FICO scores in tip-top shape, see below:

1)     Maintain a good history of paying bills on time. Payment history is the most important component of your FICO score. People with a long history of paying their bills on time, are expected by lenders to continue their good payment pattern, and will be more willing to extend credit in the future.

2)     Encourage good spending habits from your partner. Everyone has their own credit report and FICO score; when couples begin applying for credit together their shared accounts affect both FICO scores.  This is why it’s doubly important to pay on time when you’re responsible for a shared account.

3)     Don’t overspend on your lover.  While it’s easy to get caught up in buying gifts for your sweetheart, spend within your means. If you have a lot of debt, adding more debt or maxing out your credit cards can hurt your FICO score – and potentially your relationship.

4)     Don’t apply for credit you don’t need. Your FICO score not only considers the existing credit accounts on your credit report, but also applications for new credit. Applying for many new accounts in a short amount of time can be a sign of looming financial problems, which can hurt your FICO score.

5)     Discuss finances with your partner. Your partner’s financial burdens can ultimately affect your credit if you feel compelled to help out with their debts and obligations. Have an honest financial discussion early and avoid surprises later!

If you would like to learn more about the survey or how FICO can help keep you in top credit shape, please visit myFICO.com.

Seven Resolutions to Begin in 2010

1. Control spending: If you spend less you'll have more money available to pay down debt and save for the future. Write down your expenses for a month to see where your money is going. You might be surprised by how easy it is to find places to scale back.
2. Create a debt repayment plan: If you carry credit card debt, write down everything you owe and make a plan to pay it off. Start with small items you can act on right away–it will make tackling the bigger debt easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.
3. Set up auto-savings plans: Arrange with your bank or another financial institution to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America.
4. Boost retirement savings: If your employer offers a 401(k) plan, increase your contributions. If you don't have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account.
5. Create a long-term plan: Write a list of your long-term goals, such as buying a home or saving for college or retirement. Visit the Life Events section of Smart About Money for concrete tips on accomplishing those goals.
6. Protect Yourself: Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. If you do not have a will, make 2010 the year you establish a life plan.
7. Find a financial buddy: Share your financial resolutions with a friend, colleague, or family member, and you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.