CNN Money published an excellent list of the 10 biggest money wasters. There are no big surprises here, but you can see just how easily the numbers add-up.
Click here to link to the article
Wednesday, May 18, 2011
Wednesday, April 6, 2011
7 Best Cards for Bad Credit
CNN Money published a good article discussing 7 credit card options for people with credit challenges. This is very sound advice, as there are many financial institutions happy to drag you over the coals with absurd interest rates and high annual fees for past mistakes.
The companies discussed are Orchard Bank, Capital One (2 options), Navy Federal, Citi, Mango Prepaid, and Open Sky.
Click here to check out the article.
The companies discussed are Orchard Bank, Capital One (2 options), Navy Federal, Citi, Mango Prepaid, and Open Sky.
Click here to check out the article.
Thursday, March 17, 2011
9 Common Credit Card Scams
Modern technology gives scammers fertile new ground to ply their age-old trade. Here's a look at the telltale signs of common card cons and how to protect yourself from them. Con artists love credit cards. They snatch receipts and personal identification numbers, dive through Dumpsters and share information over the Internet. Scammers are very creative so they will take an old con and give it a new twist. Some go high-tech, employing texting, cameras or software while others embrace the old ways, using nothing but email or a telephone. Here are nine popular credit card scams, with clues on how you can recognize them before it's too late:
1. We Can Lower Your Rate
The caller gives you the good news: You can get a lower interest rate on your card. For an upfront charge, sometimes as much as $500, the caller promises a deal. They can deliver, they say, because they have the right contacts or a special relationship with the card issuer. They may even claim to be from "card member services," "card services" or "cardholder services”. Consumers who agree are charged the upfront fee, but those making the promises fail to deliver. The states and the federal government are putting the word out to consumers: Don't pay someone hundreds of dollars for something you can do yourself. In some cases it's a ruse to collect your financial information but in others it may be an actual business that's simply charging a huge fee for something you could do yourself. These are the signs that the call is not what you think: If this is truly a division of the issuer, you won't have to pay a fee to get a lower rate. If this is a legitimate outside company, it can't do anything you can't already do for free, such as call up and ask for a lower rate. And beware if the word "guarantee" is prominently mentioned. No one can guarantee you a lower rate.
2. The Fake Freeze
You get an "emergency" text: There's a problem with your account. Your card has been frozen, and you need to call this number. When you phone, you're prompted to enter your card number and other information. What's really going on is that crooks are collecting information so that they can use the card. This one is especially heartbreaking when criminals target people receiving disability benefits that were loaded onto debit cards since the minute the con man gets the information the account is drained. Avoid this by never using phone numbers or contact information that someone gives you in an e-mail, text or phone call. Instead, look up the card contact information yourself (from a monthly statement, on the back of the card, etc.) Then call and find out what's really going on.
3. The Three-Digit Con
You get a call from your credit card's issuing bank. There have been some problems with security, or they've noticed unusual charges and they need to confirm your information. The real purpose of the call is to get the three-digit security number on the back of your card. They may have some of your data already, which means they've either bought some of your information online, gone Dumpster diving or picked up one of your old receipts.
4. Free Games! Free Music! Free Porn!
You're online and find free music, games or porn. But that download could come with a keystroke logger. That's a malicious little piece of software that will note your private passwords and other information (such as card numbers), and send it back to the scam artist. The best protection in this case is to keep your security program updated; It has to be done automatically and regularly. There's not much of a problem with legitimate websites but the offer to download free music or free games should wave a red flag.
5. Come To Our Spoof Site!
You get an e-mail from your bank, PayPal or your favorite store telling you that there is a problem with your account or there's been a security breach or your order's ready. Whatever it is, just click this link to get more information or pay for your order. Watch out – the email is a fake and so is the site on the other end of that link. Some of the e-mails look real and a lot of people respond. The best way to protect yourself is to hit “Delete”. If it's a vendor from a place where you have an account or are expecting an order, go to the real site yourself, NOT through a link.
6. Bad credit? No income? No problem
This credit card premise sounds great: $0 fees, 0% APR, and a hefty credit limit. And if you've had some financial problems, it doesn't even matter. However, chances are it's one of a couple of scams and the catch is buried in the fine print, if it's revealed at all. Usually the card is good only for items in the company's catalog, which are marked up well beyond the norm. In most cases the "cash advance" feature of the card turns out to be an application for a payday loan. Even worse the company deducts hundreds in fees directly from consumers' bank accounts since they have this information from the application for the card. Since consumers are not expecting the bank drafts many don’t have enough money in their accounts to cover them, so they are also hit with overdraft charges from their banks. The end result is a pile of debt and a card they never used.
7. Bad Credit - Part II
In another twist on the "bad credit, no problem" script, the card is actually a secured credit card. Unlike legitimate secured cards, the fact that it's secured is buried in the promotional fine print or omitted, and these scam versions sport hundreds of dollars in fees which render them nearly maxed out from the beginning. Consumers encounter these "bad credit" card schemes in a number ways - the companies may buy lists of the recently bankrupt and call or send an e-mail or snail mail or they may place an ad and wait for the phone to ring. The best protection against this scam is to ask yourself why a company would issue you a card when your finances and credit rating are in the “toilet”. Something isn’t right and you better look pretty carefully at the “whole deal”.
8. Tag-Alongs
You're shopping online and suddenly you're presented with a free trial offer for another product or service. It’s free so why not try it. Before you know it they're debiting your bank account every month. Often called "pass-throughs" or "affiliate marketing," these are third-party vendors who are piggybacking on the original transaction. It can be a scam or a real business but it's a really bad practice for consumers. Depending on the company, the charges could be just a few dollars but it can be much, much more. In many instances people accept the offers but don't realize they had to actively cancel if they didn't want to be charged after the trial period ended. In other cases people didn't accept the offer but the charges were simply billed to their accounts. To protect yourself just say no to those free trial offers and be sure to look carefully at your credit card statements every month. If you find charges you and your family don't recognize, report them to your card company immediately.
9. Skimmer Scammers
You're ready to pop your card into the reader at the ATM or gas pump but something looks a little off. The keypad looks different or the machine looks funny, especially if it is an ATM that you use regularly. The answer is that criminals can install overlays that cover the real machinery and most consumers don't realize they are putting their cards into these fake overlays. To prevent problems look for exposed edges and don't be afraid to get physical. Pull on exposed edges or flimsy looking attachments. While crooks may do a good job cosmetically the fakes often aren't that durable. Since crooks also need your PIN, there may be a spotter with a camera, or a camera planted nearby. So be on the lookout for items that don't belong or aren't usually there (such as a trash can), or someone hanging around.
1. We Can Lower Your Rate
The caller gives you the good news: You can get a lower interest rate on your card. For an upfront charge, sometimes as much as $500, the caller promises a deal. They can deliver, they say, because they have the right contacts or a special relationship with the card issuer. They may even claim to be from "card member services," "card services" or "cardholder services”. Consumers who agree are charged the upfront fee, but those making the promises fail to deliver. The states and the federal government are putting the word out to consumers: Don't pay someone hundreds of dollars for something you can do yourself. In some cases it's a ruse to collect your financial information but in others it may be an actual business that's simply charging a huge fee for something you could do yourself. These are the signs that the call is not what you think: If this is truly a division of the issuer, you won't have to pay a fee to get a lower rate. If this is a legitimate outside company, it can't do anything you can't already do for free, such as call up and ask for a lower rate. And beware if the word "guarantee" is prominently mentioned. No one can guarantee you a lower rate.
2. The Fake Freeze
You get an "emergency" text: There's a problem with your account. Your card has been frozen, and you need to call this number. When you phone, you're prompted to enter your card number and other information. What's really going on is that crooks are collecting information so that they can use the card. This one is especially heartbreaking when criminals target people receiving disability benefits that were loaded onto debit cards since the minute the con man gets the information the account is drained. Avoid this by never using phone numbers or contact information that someone gives you in an e-mail, text or phone call. Instead, look up the card contact information yourself (from a monthly statement, on the back of the card, etc.) Then call and find out what's really going on.
3. The Three-Digit Con
You get a call from your credit card's issuing bank. There have been some problems with security, or they've noticed unusual charges and they need to confirm your information. The real purpose of the call is to get the three-digit security number on the back of your card. They may have some of your data already, which means they've either bought some of your information online, gone Dumpster diving or picked up one of your old receipts.
4. Free Games! Free Music! Free Porn!
You're online and find free music, games or porn. But that download could come with a keystroke logger. That's a malicious little piece of software that will note your private passwords and other information (such as card numbers), and send it back to the scam artist. The best protection in this case is to keep your security program updated; It has to be done automatically and regularly. There's not much of a problem with legitimate websites but the offer to download free music or free games should wave a red flag.
5. Come To Our Spoof Site!
You get an e-mail from your bank, PayPal or your favorite store telling you that there is a problem with your account or there's been a security breach or your order's ready. Whatever it is, just click this link to get more information or pay for your order. Watch out – the email is a fake and so is the site on the other end of that link. Some of the e-mails look real and a lot of people respond. The best way to protect yourself is to hit “Delete”. If it's a vendor from a place where you have an account or are expecting an order, go to the real site yourself, NOT through a link.
6. Bad credit? No income? No problem
This credit card premise sounds great: $0 fees, 0% APR, and a hefty credit limit. And if you've had some financial problems, it doesn't even matter. However, chances are it's one of a couple of scams and the catch is buried in the fine print, if it's revealed at all. Usually the card is good only for items in the company's catalog, which are marked up well beyond the norm. In most cases the "cash advance" feature of the card turns out to be an application for a payday loan. Even worse the company deducts hundreds in fees directly from consumers' bank accounts since they have this information from the application for the card. Since consumers are not expecting the bank drafts many don’t have enough money in their accounts to cover them, so they are also hit with overdraft charges from their banks. The end result is a pile of debt and a card they never used.
7. Bad Credit - Part II
In another twist on the "bad credit, no problem" script, the card is actually a secured credit card. Unlike legitimate secured cards, the fact that it's secured is buried in the promotional fine print or omitted, and these scam versions sport hundreds of dollars in fees which render them nearly maxed out from the beginning. Consumers encounter these "bad credit" card schemes in a number ways - the companies may buy lists of the recently bankrupt and call or send an e-mail or snail mail or they may place an ad and wait for the phone to ring. The best protection against this scam is to ask yourself why a company would issue you a card when your finances and credit rating are in the “toilet”. Something isn’t right and you better look pretty carefully at the “whole deal”.
8. Tag-Alongs
You're shopping online and suddenly you're presented with a free trial offer for another product or service. It’s free so why not try it. Before you know it they're debiting your bank account every month. Often called "pass-throughs" or "affiliate marketing," these are third-party vendors who are piggybacking on the original transaction. It can be a scam or a real business but it's a really bad practice for consumers. Depending on the company, the charges could be just a few dollars but it can be much, much more. In many instances people accept the offers but don't realize they had to actively cancel if they didn't want to be charged after the trial period ended. In other cases people didn't accept the offer but the charges were simply billed to their accounts. To protect yourself just say no to those free trial offers and be sure to look carefully at your credit card statements every month. If you find charges you and your family don't recognize, report them to your card company immediately.
9. Skimmer Scammers
You're ready to pop your card into the reader at the ATM or gas pump but something looks a little off. The keypad looks different or the machine looks funny, especially if it is an ATM that you use regularly. The answer is that criminals can install overlays that cover the real machinery and most consumers don't realize they are putting their cards into these fake overlays. To prevent problems look for exposed edges and don't be afraid to get physical. Pull on exposed edges or flimsy looking attachments. While crooks may do a good job cosmetically the fakes often aren't that durable. Since crooks also need your PIN, there may be a spotter with a camera, or a camera planted nearby. So be on the lookout for items that don't belong or aren't usually there (such as a trash can), or someone hanging around.
Saturday, February 5, 2011
When Not To File Bankruptcy
The idea of declaring bankruptcy, wiping out certain debts or repaying them over time with court protection with no more hassles or nasty phone calls from menacing creditors, and then moving on more or less debt free has undeniable appeal to anyone faced with overwhelming debt.
But think before you make that decision. Compelling as it may sound, bankruptcy has a lingering and far-reaching impact that will touch every aspect of your life. No matter what the commercials say, bankruptcy is not the easy way out. And there are some things you should know before you take this drastic step.
Bankruptcy stays on your credit report for 10 years and you will have to deal with the stigma of bankruptcy every time you do something that requires an examination of you credit report. It can prevent you from getting the best interest rates and high limits on credit, make it difficult to open bank accounts and get credit cards. You may get credit in the future, but you'll pay much higher rates. On a home mortgage, a person with a discharged (completed) bankruptcy on his or her credit report could pay a rate nearly 4 full percentage points higher than someone with good credit.
Employers notice, too. A bankruptcy on your record affects your ability to get a job and earn more money. Employers face strict restrictions on the questions they can ask job applicants. That's why almost every job application includes a waiver that allows prospective employers to pull your credit report. A bankruptcy on your record means you may not even get to the interview stage.
Ignore those ads asserting that bankruptcy will "wipe the slate clean." Many debts actually survive bankruptcy. Child support and alimony are not excused through bankruptcy. Neither are student loans or back taxes, in most cases. So while bankruptcy might wipe out or lower your credit-card payments, it could leave you with debts still required to be paid.
It is not easy to qualify for bankruptcy because the laws that govern it have been changed to cut down on the number of people who file bankruptcy. This was meant to curtail the use of bankruptcy for those who think they can just wipe out their debts and not be responsible for pay on any of it. A strict application process has to be passed and then you have to wait for a judge to decree that your debt relief request is approved.
No matter how difficult it seems now, getting rid of your debt by making a settlement through the DNS Debt Settlement Program is far better than having to deal with lasting negative effect that a bankruptcy will have on your financial life in the coming years.
Want to learn more? Contact us at 877-964-6404 or email to info@thednsway.com!
But think before you make that decision. Compelling as it may sound, bankruptcy has a lingering and far-reaching impact that will touch every aspect of your life. No matter what the commercials say, bankruptcy is not the easy way out. And there are some things you should know before you take this drastic step.
Bankruptcy stays on your credit report for 10 years and you will have to deal with the stigma of bankruptcy every time you do something that requires an examination of you credit report. It can prevent you from getting the best interest rates and high limits on credit, make it difficult to open bank accounts and get credit cards. You may get credit in the future, but you'll pay much higher rates. On a home mortgage, a person with a discharged (completed) bankruptcy on his or her credit report could pay a rate nearly 4 full percentage points higher than someone with good credit.
Employers notice, too. A bankruptcy on your record affects your ability to get a job and earn more money. Employers face strict restrictions on the questions they can ask job applicants. That's why almost every job application includes a waiver that allows prospective employers to pull your credit report. A bankruptcy on your record means you may not even get to the interview stage.
Ignore those ads asserting that bankruptcy will "wipe the slate clean." Many debts actually survive bankruptcy. Child support and alimony are not excused through bankruptcy. Neither are student loans or back taxes, in most cases. So while bankruptcy might wipe out or lower your credit-card payments, it could leave you with debts still required to be paid.
It is not easy to qualify for bankruptcy because the laws that govern it have been changed to cut down on the number of people who file bankruptcy. This was meant to curtail the use of bankruptcy for those who think they can just wipe out their debts and not be responsible for pay on any of it. A strict application process has to be passed and then you have to wait for a judge to decree that your debt relief request is approved.
No matter how difficult it seems now, getting rid of your debt by making a settlement through the DNS Debt Settlement Program is far better than having to deal with lasting negative effect that a bankruptcy will have on your financial life in the coming years.
Want to learn more? Contact us at 877-964-6404 or email to info@thednsway.com!
Tuesday, January 11, 2011
Six Ways to Destroy Your Budget
Start the New Year right and stick to your budget. Let's look at a few budget-busting behaviors to avoid!
1. Carrying a lot of cash.
Everyone knows that paying with plastic is a bad idea, but carrying around a lot of cash can be an even worse habit. Cash can give you the feeling of having some fun money that's just sitting there. Carry only enough cash for what you need, and leave the rest in the bank – even better leave it in a savings account that will pay you interest. Avoiding plastic is great, but don’t blow your budget just because you have some “extra” greenbacks. If you like cash try budgeting it with envelopes: one for groceries, one for entertainment, etc.
2. Saving your credit information with on-line vendors.
Online shopping sites which save your address and credit card information and even have one-click ordering buttons so you can buy something in just a second are places where destroying your budget is waiting to happen,. It's very easy and very dangerous. Not only can this easy shopping put you in deep debt if you're prone to impulse shopping, it also eliminates the feeling of spending money, because all you do is click. Never allow vendors to store your credit card information and avoid signing up for e-mails and catalogs if those tempt you to shop when you really shouldn't. It can be great to know about a sale, but if you don't need anything, it's just another temptation.
3. Window shopping.
It can be fun to browse the aisles and see what's out there. Everyone has a weak spot, like home goods, electronics or clothes. If you don't like to go to the mall you don't even have to leave the house to go window shopping; catalogs, the Internet and commercials advertising the latest sale can replace walking around the mall and can be just as tempting. Window shopping is a bad financial habit that takes some discipline to break. Staying away from your favorite retailers and not requesting catalogs or e-mail updates from your favorite stores is a good place to start. Before buying that latest item you pine for, ask yourself two questions: Do I need it, and can I pay cash for it? If your answer to either or both is no, walk away.
4. Emotional shopping.
It was a good week, or maybe a tough one, or you want to reward yourself for losing a few pounds, so you go shopping. You earned that new dress, that new gadget, that nice meal and to make things better it was also on sale. Letting your mood dictate your buying decisions is the quickest way to go broke. Sober up before shopping. Do you need these items, and can you afford them? Be honest with yourself. Reward yourself by doing something that doesn't cost a lot like treating yourself to a movie or spending some quality time with loved ones.
5. Clipping coupons you don't need.
Everyone feels the pinch in this tough economy, especially when buying groceries. Clipping coupons is very trendy today, but is it really a good habit? Getting 50 cents off that package of cookies or that brand-name detergent is a discount, but you may be surprised to find that your grocery bill isn't going down despite all your coupon clipping. The truth is that buying generic brands which are just as tasty is often cheaper even without a coupon. Furthermore, coupons can make you buy things you didn't plan for and really don’t need. Start with a grocery list for the week and then look at your clipped coupons. If you can use one, great, but also try supermarket brands for the best bottom line.
6. Not planning ahead.
It's Thursday, almost the end of a long week; you're tired and you have no idea what you'll make for dinner. A great night for takeout, right? Using data from the Bureau of Labor Statistics, it's estimated that the average family of four spends more than $4,000 per year on eating out -- a very expensive habit that will destroy your budget in a hurry. When you make your grocery list, make a menu for the week at the same time, so you always have ingredients for a meal. If your week is hectic, try cooking on Sunday and freezing meals for the week. Plan for lunches the same way; not only will you save money, you will eat healthier by avoiding fatty restaurant food.
The bottom line is that It takes some discipline to break these bad habits. With some planning, restraint, and avoiding tempting situations, you can break these habits, and maybe even find you have a little extra cash at the end of the month!
1. Carrying a lot of cash.
Everyone knows that paying with plastic is a bad idea, but carrying around a lot of cash can be an even worse habit. Cash can give you the feeling of having some fun money that's just sitting there. Carry only enough cash for what you need, and leave the rest in the bank – even better leave it in a savings account that will pay you interest. Avoiding plastic is great, but don’t blow your budget just because you have some “extra” greenbacks. If you like cash try budgeting it with envelopes: one for groceries, one for entertainment, etc.
2. Saving your credit information with on-line vendors.
Online shopping sites which save your address and credit card information and even have one-click ordering buttons so you can buy something in just a second are places where destroying your budget is waiting to happen,. It's very easy and very dangerous. Not only can this easy shopping put you in deep debt if you're prone to impulse shopping, it also eliminates the feeling of spending money, because all you do is click. Never allow vendors to store your credit card information and avoid signing up for e-mails and catalogs if those tempt you to shop when you really shouldn't. It can be great to know about a sale, but if you don't need anything, it's just another temptation.
3. Window shopping.
It can be fun to browse the aisles and see what's out there. Everyone has a weak spot, like home goods, electronics or clothes. If you don't like to go to the mall you don't even have to leave the house to go window shopping; catalogs, the Internet and commercials advertising the latest sale can replace walking around the mall and can be just as tempting. Window shopping is a bad financial habit that takes some discipline to break. Staying away from your favorite retailers and not requesting catalogs or e-mail updates from your favorite stores is a good place to start. Before buying that latest item you pine for, ask yourself two questions: Do I need it, and can I pay cash for it? If your answer to either or both is no, walk away.
4. Emotional shopping.
It was a good week, or maybe a tough one, or you want to reward yourself for losing a few pounds, so you go shopping. You earned that new dress, that new gadget, that nice meal and to make things better it was also on sale. Letting your mood dictate your buying decisions is the quickest way to go broke. Sober up before shopping. Do you need these items, and can you afford them? Be honest with yourself. Reward yourself by doing something that doesn't cost a lot like treating yourself to a movie or spending some quality time with loved ones.
5. Clipping coupons you don't need.
Everyone feels the pinch in this tough economy, especially when buying groceries. Clipping coupons is very trendy today, but is it really a good habit? Getting 50 cents off that package of cookies or that brand-name detergent is a discount, but you may be surprised to find that your grocery bill isn't going down despite all your coupon clipping. The truth is that buying generic brands which are just as tasty is often cheaper even without a coupon. Furthermore, coupons can make you buy things you didn't plan for and really don’t need. Start with a grocery list for the week and then look at your clipped coupons. If you can use one, great, but also try supermarket brands for the best bottom line.
6. Not planning ahead.
It's Thursday, almost the end of a long week; you're tired and you have no idea what you'll make for dinner. A great night for takeout, right? Using data from the Bureau of Labor Statistics, it's estimated that the average family of four spends more than $4,000 per year on eating out -- a very expensive habit that will destroy your budget in a hurry. When you make your grocery list, make a menu for the week at the same time, so you always have ingredients for a meal. If your week is hectic, try cooking on Sunday and freezing meals for the week. Plan for lunches the same way; not only will you save money, you will eat healthier by avoiding fatty restaurant food.
The bottom line is that It takes some discipline to break these bad habits. With some planning, restraint, and avoiding tempting situations, you can break these habits, and maybe even find you have a little extra cash at the end of the month!
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