Younger consumers more at risk for identity theft
March 25, 2010
A recent survey has found that younger consumers – specifically the “millennials” who are 18 to 24 years old – are most at risk to become victims of identity theft.
According to a recent article in The Washington Post, the reason is that this particular age group doesn’t protect themselves enough, nor do they detect when something is wrong soon enough. The millennials simply aren’t careful enough with their sensitive information, and they are not paying enough attention to their financial records to know right away when something is wrong.
The article says, “It takes young people an average of 132 days to detect fraudulent activity on their credit cards, bank accounts and other personal holdings, and those in older age groups average 49 days, the survey shows. When their identities are stolen, millennials are victimized by thieves for an average of about give months.”
Five months?!? That’s a long time to have someone posing as you and stealing from you.
The survey also showed that over half of the victims never figure out how their information was stolen.
This is a good lesson for all of us, regardless of age. We have to be careful about protecting our personal information.
- Do not share personal information with anyone.
- Don’t ever respond to e-mails requesting your private information. Many thieves use what is known as “phishing” to get access to people’s personal information.
- If you are using a wireless internet connection, make sure it secured. Identity thieves can actually “look” into your computer if you have an unsecured connection and steal your information.
- When making purchases online, make certain you are using a secured site and avoid using public computers.
- Check your bank and credit card statements on a regular basis, especially your bank statement. This is easy to do now that most banks and creditors offer online statements.
- Check your credit report on a regular basis and look for any unauthorized activity.
Insufficient funds: Decline the transaction or pay an overdraft fee?
March 10, 2010
By now, most people are probably aware of the new credit card rules that took effect last month.
One of the new rules involves overdraft fees. Many banks allow credit and debit card transactions to go through, even if the card user is over their credit limit or has insufficient funds in their checking account. The transaction would process, and the card user would get hit with an over-limit fee. These fees are typically around $36.
Some people would go over the limit with a small transaction, like a latte. Add the over-limit fee to the cost of the drink, and you’ve got yourself once expensive latte!
The banks contended that this was a service to their customers and that customers would rather pay an overdraft fee than face the embarrassment of having their transaction declined at the register.
The new regulations require that banks have their customers “opt-in” if they want to continue to make purchases with insufficient funds and pay the overdraft fee. First, I would recommend that everyone keep careful records and know exactly how much they have left in their bank account or on their credit limit, so that overdrafts or declined purchases are never an issue to begin with. I would also recommend people suffer a little embarrassment rather than create even more debt with overdraft fees.
Bank of America has announced that they are going to stop courtesy overdrafts altogether. There will be no opting in. According to an article about this in the New York Times, “In the case of overdraft, 93 percent of the fees are generated by just 14 percent of the customers who exceed their balances five times or more a year, according to a 2008 study by the Federal Deposit Insurance Corporation.”
The article also said, “Last year alone, banks generated about $20 billion from overdraft fees on debit purchases and A.T.M. transactions, and $12 billion more by covering checks and recurring bills, according to Moebs Services, an economic research firm.”
That means a relatively small amount of people are paying a lot of money as a result of keeping poor financial records and making poor financial choices.
What do you think of Bank of America’s new policy? Would you rather pay an overdraft fee or have your purchase declined?
Great hair on a budget
March 1, 2010
When it comes to the cost of beauty and personal care, things can get pretty pricy. That’s often especially the case for women and their hair.
Hair care is probably the thing I spend the most on. Between hair cuts, colorings, shampoo and conditioner and other hair products, the cost can add up quickly. But there are ways to be in style and look great without breaking your budget.
Choose a hairstyle that is low maintenance. The shorter your hair, the more frequently you need to get a hair cut in order to maintain the style. If you can wear your hair long, you can get away with a trim every 8 to 10 weeks. If your hair is very short, like a pixie cut, you will probably need a trim every four weeks to keep up the look. Bob hair cuts are really in style right now. If you go with a longer bob, you can go about 8 weeks without a cut.
Don’t forgo haircuts altogether, or for more than 10 weeks. Getting regular trims keeps your hair looking its best. If you wait too long between trims, your hair will start to look shabby. If you’re an adventurous person, check out local cosmetology schools in your area. Students need to practice, and you can often get a hair cut for a very low price on days when the school salon is seeking customers.
Obviously, not coloring your hair saves the most money. If you must color your hair (I know that some of us want to hide those grays. Yikes!), pick a color that is close to your natural shade and preferably a shade darker rather than lighter. If you go lighter than your natural hair color, your roots will show quickly. If you choose a hair color that’s just a shade darker, your roots won’t be nearly so noticeable. And, if you do color your hair, skip the highlights. Highlights quickly add a significant amount to the cost of a color.
Skip the salon brands of hair products. There are a lot of really good, really affordable shampoos, conditioners and other hair products on your grocery store shelves. Try out different products to see which you like the best. I mix and match products from different lines, depending on which I like the best. If you have a favorite, yet expensive, salon brand, only buy it once a year as a splurge.
By choosing a cut and color that are low maintenance and watching how you spend money on hair products, you can look stylish without busting your budget.
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