What to do if you’re a victim of Identity Theft
Every day, thousands of honest, hard-working people unknowingly have their personal information stolen by identity thieves. Information including your full name, social security number, credit card or bank account number, and medical insurance account number can be fraudulently used by a thief to assume your identity for their own financial gain.
With your personal information in hand, a thief can use it to apply for credit, steal your tax return, open a phone, gas or electric account, rent an apartment, and even receive medical care. Any one of these acts can substantially damage your credit when bills go unpaid because (1) they aren’t your charges and (2) you’re unaware of the activity. It’ll also cost you a considerable amount of time and energy to restore your good name and credit standing.
Best ways to prevent identity theft
While we all may be at risk for identity theft, there are some steps you can take to protect yourself and your personal information:
- Keep your social security number secure; don’t carry your card with you and only provide the number when absolutely necessary.
- Be selective when providing personal information by phone, mail or online and never respond to unsolicited requests.
- Keep passwords private and protect them from view when typing on a computer or ATM. Make sure they’re complex and not easy to guess.
- Request a free copy of your credit report once a year. Review it for open accounts, credit inquiries, delinquencies and any other suspicious activity.
- Review your monthly credit card bills for any unauthorized charges and pay attention to billing cycles.
- Promptly collect your mail every day and put a hold on your mail when you are out of town.
- Shred receipts, credit card offers, account statements, expired cards, and any other documents that include personal or account information.
- Install firewalls and virus-detection software on your home computer.
Look for the signs
Your identity is one of the most important assets you own and should be guarded and monitored with that in mind. Look for the warning signs that your identity may have been compromised, which can be alerts from your bank, unfamiliar activity in your credit card accounts, changes in your credit score, missing bills for standard services like gas or electric, or any other suspicious activity.
What if you’re a victim?
If you’ve been a victim of identity theft, it’s important to act quickly. Here are the steps you can take to minimize the negative consequences and to alert the necessary authorities in the most efficient way possible:
1. Put a fraud alert on your credit reports
A fraud alert notifies lenders and creditors to take extra precautions when verifying your identity before extending credit. Contact one agency, (Experian, Equifax, or TransUnion) and they’ll contact the remaining two. Initial fraud alerts are free and remain in place for 90 days.
2. Check your Social Security number
One of the first things to do is check and see if your social security number has been compromised. If your number is part of the theft, it’s important to contact the Social Security Administration (800-269-0271) and the Internal Revenue Service (800-829-0433) to report and correct the activity.
3. Report the fraud to your financial institutions
If your credit card was stolen, report it to the credit card issuer. If your checkbook or debit card was stolen, contact your bank. It’s especially helpful if you have a list of institutions and phone numbers prepared in advance. Make sure this file is encrypted and not able to be easily accessed by identity thieves.
4. Contact the authorities
The Federal Trade Commission (FTC) allows citizens to file an Identity Theft Affidavit to create an Identity Theft Report. In order to fully file an Identity Theft Report, you need to report them the theft to local law enforcement. Have the police department send you a copy of the report and take down the report number. You can file an identity theft report online by clicking here or call the FTC at 1-877-438-4338. Filing an Identity Theft Report is a smart way to help credit reporting agencies identify who the thief may have contacted and determine where accounts were opened in your name.
5. Check-in with the Post Office
It’s not uncommon for identity thieves to submit a fraudulent change-of-address in order to access checks and new credit cards. It’s smart to check with the Post Office to see if any unusual activity has occurred. If there is fraud, you may need to contact the Postal Inspection Service to file a formal report.
Learning that you’ve identity has been stolen can be incredibly stressful, especially when the consequences can wreak havoc on your finances. Being diligent and protecting your personal information can help save you from that anxiety. But even if you do fall victim, acting fast and knowing who to contact will still offer some sense of control.
#MemberAppreciationMonday: Tin Lizzy’s Queso!
It’s the first Monday of the month which means we’re bringing members another great deal thanks to #MemberAppreciationMonday and Tin Lizzy’s! Love queso? So do we – that’s why we’re treating our members to a free cheese dip at any Atlanta-area Tin Lizzy’s Cantina location*! Just show your Georgia’s Own credit or debit card through June 30th, and your cheese dip is on us! For more details visit georgiasown.org.
Millennials saving for uncertain future
How are millennials (we) saving for an uncertain future? According to an article by Michael Douglass from CNNMoney, millennials are saving earlier for retirement than their parents were. This is great news for us, but unfortunately the financial outlook is dimmer than in years past. In fact, recent figures from the Employee Benefit Research Institute state that millennials may need to DOUBLE how much we are saving for retirement. This is due in part to expert projections of how the stock market will perform in years, and decades to come. Experts have stated they expect to see a steady decline in average stock gains. In addition to the declining stock market, Social Security might not be available for us when we turn 67.
What to do with such a glum outlook? Well, first things first, you need to have a plan. Do you know how much money you need to save for retirement? Does your job offer a 401k plan with a match? If not, have you considered opening an IRA and investing in mutual funds? Experts say you should be saving roughly 10% to 15% of your income to live comfortably in retirement. Some experts suggest as much as 25% to ward off the potential financial woes of the future economic climate. Starting earlier is better, so the sooner you can start saving, the better off you’ll be. Even a few years can make a substantial difference.
Here are a few quick tips to help you along your path to retirement:
- Have a plan
- Know your retirement savings goals
- Pay yourself first – set aside a planned percentage of money from each paycheck (preferably at least 10-15% or more, if possible)
- Talk to a financial advisor about your situation (they can be free of charge)
- Perform regular assessments of your retirement accounts and contributions to make sure that you’re on track for your goals
- Adjust your contributions as necessary to meet your goals
- Don’t live beyond your means – if you are living paycheck to paycheck, reassess your situation and find ways to make cuts or, better yet, increase your income earning potential
Retirement savings plan
Investment experts suggest you should save double your annual income by the age of 35. The chart below is an “estimated†projection based on a starting annual income of roughly $35k at age 21, with regular 3% annual cost of living raises, a regular contribution of roughly 10% of your paycheck, and a 3% rate of return from your retirement account.
*The retirement chart is for illustration purposes only, and not to be used as a guidepost.Â
Note: This blog post is intended as informational only, and is not investment advice, consult a financial advisor before making any financial investment decisions.
6 tips on how to travel cheap
Memorable vacations can come with a price tag you’d rather forget. But with proper planning, smart research and a flexible attitude, you can travel cheap and still have an experience worth remembering. Here’s how.
1. Cut transportation costs
Before planning your trip, have a rough budget in mind. A vacation calculator can help. If you know how much you’re willing to spend on airfare, this map can give you ideas for destinations that are within your budget.
Traveling cheaply isn’t just about cutting costs — it’s also about getting the most out of what you spend. You may discover, for example, that the $400 you thought could pay only for a flight within the U.S. can actually take you to Paris and back.
If your travel dates are flexible, you may find an even bigger selection of places you can afford to visit. If you’ve already picked a destination, changing the departure dates could lower your airfare.
Setting up alerts for when prices drop should also be a part of your strategy. Try apps such as Yapta or Hopper, which will send you price notifications on flights you’re tracking. (Booking fees may apply.) You can also follow Twitter handles like @theflightdeal or @FareDealAlert for limited-time deals. If you find a price you like, scrutinize the airline’s baggage policy before booking. Some offer cheaper ticket prices, but have strict carry-on requirements or tack on sizable fees for overweight and oversized luggage.
If your destination is within driving distance, consider hopping in a car instead of on a plane. Use a trip calculator, like this one, to make sure it’s worth the tradeoff. Add in the cost of renting a car, if necessary.
2. Compare lodging options
Finding a cheap hotel room can be tricky and takes a bit of effort. Start by shopping around on sites like Expedia, Priceline.com and Kayak to find hotels in the area, and then search for hotel promotion codes online. Contact hotels directly to negotiate a lower price. Also consider staying in a hotel outside the center of the city and looking for last-minute deals.
If you’re open to alternatives, skip the hotel and book a room through a site like Airbnb, Homeaway and OneFineStay. Not only could those be more affordable, but often you’ll stay with a local resident who can point you to cheap restaurants and activities that aren’t in travel guides. Hostels can also be a money-saver if you’re OK with bare-bones accommodations and potentially sharing a room. Keep in mind that they may have age restrictions.
3. Eat wisely (and not just healthy)
Many travelers underestimate the costs of meals, snacks and tips, says guidebook author James Kaiser. He advises bringing your own food or buying it at a store when you arrive at your destination to save money.
That doesn’t mean you have to skip restaurants altogether and haul groceries around. Dining out is one of the most enjoyable parts of travel. The trick is knowing when to indulge and when to save.
Start by looking at your itinerary. Break down your meals each day and identify the times you want to splurge. Then look for ways to save money on the other meals. For example, you can avoid inflated prices at the airport by bringing food and an empty water bottle that you can fill once you’re past security (passengers are prohibited from bringing more than 3.4 ounces of liquids, per container, in carry-on bags at U.S. airports). For breakfast, pack energy bars so you can save time and money in the mornings.
Your spending will likely fluctuate from day to day, so remember to adjust your budget to avoid overspending.
4. Research your currency options
If you’re traveling abroad, find out if the country you’re visiting is plastic-friendly. If so, a debit or credit card that doesn’t charge foreign transaction fees could be your best bet. Otherwise, research your currency exchange options to avoid the poor rates and numerous fees common at airport kiosks. Those will shrink your vacation fund before you’ve even had the chance to unpack.
Visiting your bank or credit union to exchange money before you leave may be the best option. Assuming it has that currency, you’ll likely get better exchange rates and lower fees. And, just in case you end up needing more cash once you’re abroad, ask if your financial institution has international branches or a partnership with a bank overseas. If so, you may be able to withdraw cash from those ATMs with low or no fees.
5. Get a prepaid phone or SIM card
A cell phone can be useful for navigating new cities, as well as staying connected to travel companions and life back home. But for international travelers, it may also come with data roaming fees. You’d save the most money by ditching the phone during your trip, but that may not be realistic. Your best option will likely be buying a prepaid phone once you arrive or having your carrier unlock your phone, if possible, so you can use a foreign SIM card when you land.
6. Keep souvenir spending in check
Like everything else, set a budget for souvenirs. Also consider doing some research on the best souvenirs and shops, so you’ll have a sense of what you might buy and the prices to expect.
If you find yourself on the verge of an impulse purchase, try an abbreviated version of the 72-hour shopping rule, in which you put off buying something for three days to see if you still want it. That amount of time is probably impractical when you’re on vacation, but if your schedule allows you to return to the store the next day or even later that same day, you may find that you can easily live without that $150 wool sweater from Iceland. You were only going to wear it once, anyway.
Devon Delfino is a staff writer at NerdWallet, a personal finance website. Email: [email protected]. Twitter: @devondelfino.
Graduation gifts that won’t empty your savings account
With your mailbox overflowing with announcements and party invitations, there’s no denying that graduation season has arrived. Whether it’s high school or college, you’ll want to choose a gift that’s both thoughtful and appropriate for your graduate, but also doesn’t break the bank. Here are a few ideas to offer your congratulations:
A share of stock
A share of stock is a gift that can appreciate over time. To make it a little more personal, you may want to put some extra thought into the company you choose. Do you have some great memories of visiting Disney World together? Buy a share of Walt Disney Company. Mac lover? How about a share of Apple, Inc.? Car enthusiast? A combination of the Big Three, General Motors, Ford, and Chrysler would be a fun choice.
A financial planning consult
Planning, budgeting, and having to stretch your last $20 over the next week is always a challenge. Whether they’re college-bound or heading off into the working world, graduates likely have little experience effectively managing their finances. This is the time when they’re most susceptible to making some huge financial mistakes. Why not put an expert in their corner—other than Mom and Dad—who can offer some professional guidance and warn them of the consequences of poor financial management? It may not be the most exciting gift, but it will be one of the most valuable.
An annual subscription
Is your graduating senior an avid reader? An annual subscription to a specific area of study, personal finance or money magazine could be an excellent idea, especially if it’s digital! How about the WSJ or your hometown newspaper? Not only will they think of you each month when it arrives, they might learn something, find another interest, or just be able to ward off a small bout of homesickness.
A gift card
Gift cards are a great way to go if you don’t want to commit to a specific item. Does your graduate need something practical? Choose a Walmart or Target gift card. Are they headed to work? Maybe they need some new interview attire. Want to make sure they eat more than just pizza and french fries seven days a week? Their favorite restaurant gift card would be perfect. The choices are endless!
Cash
Money for groceries, books, gas, school supplies, clothes…cash will never go unused and is always appreciated regardless of the amount. It may not seem as personal, but let’s face it, these graduates are entering a new chapter of their lives, and they’re not sure what to expect or how much it will cost. On the bright side, not having to use a credit card will allow them to manage their debt more effectively and will reduce their chance of accumulating astronomical interest charges!
Whether you decide to give a practical gift, something smart, fun or completely off the wall, we’re sure your graduate will absolutely love it. They’ve worked hard to achieve their success and will appreciate just being celebrated. On to a new adventure, they’re going to need all they help and guidance they can get, and your encouragement and support will mean the world to them!
4 reasons to buy a home instead of renting
The financial benefits of buying a home compared with renting have yoyoed over the years, especially of late. If you’re sitting on the fence, here are four circumstances in which it may be a better bet to buy.
If interest rates remain low
From a financing perspective, if this isn’t the best time to buy a house, it’s pretty darn close.
The average interest rate on a 30-year fixed mortgage, the most common variety, has hovered below or near 4% for several months now. For comparison’s sake, if you bought 10 years ago, the average interest rate was 6.41%. In 1996, it was 7.81%, and in 1981 it was a whopping 16.63%.
Although the Federal Reserve has begun to inch rates upward, it is likely that it will do so slowly and that it will be a while before the cost of borrowing to buy a home stops being historically low.
If home prices level off
Home prices rose steadily in the 1970s, ’80s, ’90s and 2000s before plunging around 2007, and in the past few years they have been climbing again. Different markets have seen different trends, of course, but generally what’s at play is supply and demand: More potential buyers than houses available means sellers can dictate terms and get top dollar.
But something interesting is happening: The oft-told story that millennials are renting for longer or living with their parents nowadays is not entirely accurate. No, people in this age group (born between 1981 and 1997) want very much to own a home, but they are putting it off because of real and imagined difficulties in affording it.
That could mean fewer potential buyers and a cooling of the upward surge in home prices. While others wait, you could pounce.
If rental costs continue rising
Real estate researcher Reis Inc. reports that apartment rents rose 4.6% in 2015. In hot housing markets such as California and the Pacific Northwest, rents are going up by about 14% per year. According to Zillow, the median asking price nationwide for a rental was $1,575 per month in early 2016.
The monthly payment on a $200,000 mortgage — about the average in the U.S. — with a 4% interest rate would be just over $950. Even with taxes, insurance and maintenance, it’s tough to make a financial case in favor of renting.
If you want to save money
Home values over the past 70 years have generally tracked with inflation. Yes, you could make more money in the stock market. But we’re talking real life, not investment advice. Consider two things:
- Your rent is locked in for a year or two, then will go up. Your mortgage payment can be the same for 30 years.
- If you are raising a family, it seems all but impossible to save money. But when you sell the house after 30 years (or 20 or 10), someone will hand you hundreds of thousands of dollars, money that could put the kids through college or finance your retirement.
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