Jill Russo Foster

Tips for Successful Personal Finances

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Archives for January 2010

Guard Your Social Security Card

Your social security card has been lost or stolen – what do you do? That’s a tough question. If there is no evidence that someone is actually using the number, neither Social Security nor the FTC will help you.

If you do have evidence that someone is using your number, you can contact the FTC at 1-877-IDTHEFT or FTC.Gov. If you are unsuccessful in trying to correct the situation, Social Security might give you a new social security number. You can contact them by calling 1-800-772-1213. For more information, visit SocialSecurity.Gov.

You should also report the loss to each of the three major credit reporting agencies: Experian, EquiFax and TransUnion. Ask them to put an alert on your credit report. This will send a signal to any merchants or credit companies that the person requesting a new account may be using stolen information. Actively monitor your credit by ordering free reports from AnnualCreditReport.com

If you are in a state that allows you to put a credit freeze on your credit report, I would do this as well. That way, no one can access your report unless you authorize them to do so. There is a charge: First a fee to freeze your report, then another fee to unfreeze your report when you apply for credit cards, loans, or insurance. But, it’s better to be safe than sorry.

With that thought in mind, remember to keep your card in a safe place and not in your wallet.

Give to the Victims – Not the Scammers

With the recent events in the world, you may want to make a charitable donation to help the cause.  When disasters occur, they tend to go hand in hand with scammers.

The best way for you to donate and help is to research the charities before you give. Some charities may want monetary donations, others may want specific items.

Whatever you chose to do, make sure that your donation is being put to the best use for the cause and not lining someone’s pockets.

First you need to choose a charitable organization. Even if you have a specific cause in mind, there could be many organizations claiming to support the same goals you do.

Second, you will want more information about a charity, and how they use their funds, go to www.give.org.  Here’s what you need to know:

  • Find out how much of each dollar is used for the cause, versus how much is used for administrative expenses.  The higher the amount used for the cause the better.
  • Find out whether they have a 501(c) (3) tax status if you are planning to deduct this donation on your IRS tax return.

Now that you have selected the charity of your choice, you will to decide whether you will be making a donation of money or specific items to the charity.  Check to see what they suggest is best for what you want to accomplish.

For monetary donations, you should always use a check / debit card or credit card so that there is a record of the transaction. This is the easiest way so that you have proper documentation.

If you are donating specific items, you will need to have a record of what you are donating. For non-cash items, you can use the purchase receipt, itemized list along with documentation from the charity.  Please check with your tax preparer, so that you have the proper documentation.

What’s up with credit card companies lately?

There was a time when our mailboxes were full of credit card offers. Now the offers have been replaced with policy change notices.

Credit card companies are racing to make changes before the new regulations hit in February 2010. They’ve have had a bad couple years. It used to be easy to make money in the credit card business, but things have changed.

The first issue is defaults. Because of unemployment, more people are defaulting on their debts. So, credit card companies have been lowering everyone’s credit limits to help reduce the risk. Their reasoning is sound. The less debt you have, the less debt they will have to cover.  Expect your credit card limits to fall even if you have a good payment history.

The second issue is pay offs. More people are paying off their credit card debt because they’re anticipating layoffs. This means that the creditors are earning less from interest payments. They need risk-free revenue, so they’re looking at annual fees. Expect your credit card company to either add an annual fee or increase the fee you already pay.

Right now, under the old regulations, they can still make changes to your account with minimal notice.  If you get an unpleasant policy change in the mail, you should definitely call the credit card company and try to get them to revert back to the original terms.  If that doesn’t work you can always close the account.