Jill Russo Foster

Tips for Successful Personal Finances

You are here: Home / Archives for Jill Russo Foster

Get Organized by Reducing Junk Mail

Does this sound familiar? You come from after a long hard day You check your mail and more than half of its junk mail Then your phone begins to ring with unsolicited calls interrupting dinner If you have a fax machine, you find pages of unwanted offers for you to go through to find the one page you want You didn’t ask for any of this stuff! So what is a person supposed to do?

For many, simply ignoring the calls, throwing away the junk mail and faxes is the easiest way to deal with the problem However, there are several simple things you can do to help eliminate the problem altogether It’s time to start opting out.

Opting out of junk mail can eliminate a good percentage of unwanted mail Most of your accounts (banks, credit card companies, etc) give you a choice in the form of an opt-out notice It’s typically the insert in the bills the one you usually ignore and toss out Anytime you see the notice that gives you the option of receiving or allowing others to send you information, check the NO box, if you don’t want your information being sold or shared from one company to another For all those other junk mailings that make you say how did I get on this mailing list? Remember that your name and address can be obtained in a variety of ways – credit bureaus, magazines or catalogue subscriptions, published information, etc It’s worth a few minutes to write or call and ask to be removed from the mailing list; you can also specify that your information not be distributed to anyone else For ways to better protect your personal information and to opt-out, check out http://opt-out.cdt.org They offer online opt-outs, as well as a link for automatically generating opt-out letters for you to print and mail.

Next week, I’ll continue with your phone and fax information.

Check Your Phone Bill for Fraudulent Charges or "Cramming"

You may have unauthorized charges on your phone bill.

Phone bills can be confusing There are various services charges and taxes associated with using a phone number You may be tempted to ignore the fine print However, I suggest you check your phone bill carefully Circle any charges you don’t understand and call your phone company for an explanation You may be a victim of “cramming.”

What is cramming? According to the FCC: “Cramming is the practice of placing unauthorized, misleading, or deceptive charges on your telephone bill Crammers rely on confusing telephone bills in an attempt to trick consumers into paying for services they did not authorize or receive, or that cost more than the consumer was led to believe.”

Could cramming happen to you? Yes Here are two common examples:

1 You signed up for a new phone service because they offered a low monthly fee However, you weren’t told that common services, like texting or long distance, weren’t included in the fee and you’d be charge extra for each message.

2 You used your phone to donate money to the earthquake in Haiti They said it would be simple and the charge would appear on your phone It did But then you find a new recurring “membership” fee on your account after that donation That’s a classic example of “cramming.”

Here’s the bad news Unlike a credit card company, you cannot contact your phone provider and dispute the charge Typically, the phone company refuses to get involved and you are left to fight this on your own.

So what are you supposed to do? You can contact your phone company to request to block third party charges on your phone bill Once you do this, you can no longer authorize charges either, so texting donations is out It’s an all or nothing option

You should be aware of your bills and look at them closely for anything unauthorized and take appropriate action Do you remember the telephone days of Ma Bell and the breakup back in 1984? Before the breakup, there was only phone company and charges were easy to trace Shortly after the breakup, it was still easy to track your charges because you were billed on one statement regardless of how many companies you used Those days are over Today, you need to carefully review your phone statements to protect yourself against fraud.

For more information on cramming, visit the FCC at www2.fcc.gov/cgb/consumerfacts/cramming.html

Replace an Appliance using the Federal Rebate Program

Have you been thinking about replacing an appliance for another more efficient one? Were your appliances damaged in one of the storms this spring? Now may be a good time to make a purchase.

Connecticut is one of 14 states participating in the Energy Efficient Appliance Rebate Program The Federal Government gave Connecticut $3.4 million to use for this program The program started January 25, 2010 and will run out when the funds are used up So if you are thinking about replacing that old appliance for a more efficient one or you lost one in the storm damage, this is the time to consider buying one or more.

This program is designed to stimulate the economy with sales that will help retailers and to provide you with a more efficient appliance that will lower you energy usage (therefore lower you utility bill) If you live in Connecticut, go to www.ct.gov/opm/ApplianceRebates If you live in another state, search your state government’s website for more information.

You will get the following rebates:

Clothes washer $100
Refrigerator $50
Freezer $50
Room A/C units $50*
Central Air units $500

*You are allowed one each except for room a/c where you are allowed 3.

Only buy an appliance if you can afford it, or if you know your insurance company will reimburse you for your claim Buying something you don’t need or can’t afford will not do you any good, even if you get a rebate As always, consider how you will pay for it before you buy This is one of those things that you should be able to pay for from money in your savings account This is not a good purchase for to put on a credit card and make minimum payments for years to come.

Paying by Check Puts You at Risk

When you want to make a purchase with the money in your checking account, do you actually write a check or do you use a debit card I am not talking about paying bills, which is relatively safe I’m talking about making a purchase at a store or a garage sale.

I recently read that some retailers no longer accept checks as a form of payment At first I thought this was strange, but then I realized that I couldn’t remember the last time I wrote a check at a store I haven’t carried my checkbook with me since I had my purse stolen years back It was a bad experience Did you know that your account number and bank routing number are clearly printed on each check? Not to mention your name and address That’s too much information Instead, I use cash and my debit card It’s easy and more convenient.

When you use a debit card, you give away less personal information No one can see your home address or your phone number Your driver’s license number isn’t written down for all to see You might think, “well it just goes in the register and then off to the bank.” But, that’s not the case If you’ve ever worked retail, you know that closing can be chaotic, with open registers and multiple people accessing each register as they balance the sales for the day Then, your personal information goes to the store office, to bank personnel, and then to the check clearing house They all have access to your information And, I’m not even getting into the computer systems that store this information and what can happen with that Who knows if one of them is taking your information for some fraudulent purpose?

The less people who see your information; the less chance of identity theft We all need to do our part to keep our personal information safe.

Is convenience hurting your wallet?

Is convenience hurting your wallet?

Yes, we all want convenience We all work, have families, a household , and we all want to do it all, but there is never enough time Convenience saves time and that’s of huge importance to us all But look at it from the wallet side convenience can cost more money.

Can you have convenience cheaply? If you’re willing to plan, yes! Here are a few examples:

Pizza night: Who doesn’t like to have pizza delivered to the house But, how about a store-bought cheese pizza at $5.00 that you bake at home versus a delivery pizza at $10 (plus the cost of delivery and a tip).

Fruit and Vegetables: Pre cut fruits and vegetables are more costly than the actual item If you don’t like to cut them up yourself, choose fruits and vegetables that are easy to eat without cutting.

ATM machines: I know many people who take out $20 today to buy lunch and then another $20 tomorrow when they are at the store again If you are using an ATM that isn’t free this all adds up How about planning for the week and making one withdrawal at your bank’s machine That way there are no ATM charges.

Books, music and DVD’s: Convenient to buy, rent and/or download for a small fee But, did you know that you can borrow these from your local library at no cost?

All these little amounts add up This could be the difference between having a savings account versus living paycheck to paycheck.

Trust me – you need to see where all the little money is going and start to make conscious choices about whether to spend your money or not Convenience saves you time but it might be costing you more in the long run.

Hurricane Preparedness Week 2010

Hurricane Preparedness Week will be held from Sunday, May 23 to Saturday, May 29.

We all know we should have flashlights with new batteries, manual can opener, candles etc but do you follow the advice?

We had a bad storm this winter, a nor’easter, which can produce hurricane force winds Yes, I had all those on hand But I didn’t check them ahead of time My second flashlight didn’t work I didn’t have a cell phone charger for the car So off I went on Sunday morning to the store along with everyone else driving around, being detoured around fallen trees and power lines to find that one open store that still had what I needed.

This is my new updated storm list of what to have on hand

  • Working flashlight with extra batteries
  • Candles
  • Battery powered or rechargeable lantern (make sure you keep it charged)
  • Battery powered radio
  • Manual can opener
  • Hard wired phone you need one if you have a landline
  • Car chargers for your electronics cell phone, PDA etc.
  • Extra blankets and sweaters if you are staying in your home without heat
  • Wood and matches for your fireplace
  • Barbeque grill to cook on, or, know what restaurants are open we had a meal at the hospital restaurant since we knew they would be open when others restaurants weren’t or had a really long line to get in.
  • Cash, since ATM and stores need power to use a credit or debit card
  • Full tank of gas (not be on empty since gas stations need power to work)
  • Appropriate tools and equipment to repair damages and debris

Also, you need to know where you have kept each of these items so that you can find them when you need them.

Before this happens to you, please check your insurance policy to make sure you have the right coverage for the proper amount Yes, this for homeowners as well as renters Renters insurance is a small amount to pay compared to losing your personal property that the landlord’s policy doesn’t cover Contact your insurance company today and be ready for the next storm.

For more information on storm preparedness, visit www.hurricanes.gov/prepare

If You Can’t See Your Money, You’ll Spend More

Don’t let your bank profit from overdraft fees! In 2009, it’s estimated that banks earned $20 billion (yes, with a b) in overdraft fees Transactions from ATM machines, debit cards and reoccurring bill payment transactions are mainly responsible for record overdrafts These are invisible money transactions because you can’t see how much you’re spending or how much you have left in your account.

With the new Credit Card Act of 2009, things are changing.You will not be able to automatically overdraw your bank account.Instead, your transaction will be declined.But, that information may come too late to save you from difficulties with creditors and merchants.

The only way to prevent overdrafts is to keep good financial records You must know how much you have available at any given point Better yet – use cash According to studies, people who use actual cash spend 20% less than using other forms of payments That’s because they can see how much money they have left after making a purchase If you choose to use cash, use larger bills The larger the bill, the less likely you are to spend it It is so much easier to spend $5, $10 and $20 It doesn’t seem like much if you spend $20 in 5 different stores But if you have to break a $100 bill, you will have a true understanding of how much you’ve spent.

If you still want to use invisible money, and you aren’t going to track your account, you will have to opt-in with your bank to have your transactions pre-approved Remember that you will still have the fees associated with overdrawing your account.Those fees are typically over $35 for each transaction.

Spend wisely by avoiding fees Avoid fees by keeping good records or by using cash Overdraft fees are a total waste of your hard earned money.

Are you confused about where to get your FREE credit report?

The ads tell you that you will get a free credit report, but then you learn you have to pay for a service to get the report. Those ads have confused so many people.

If you have been following this blog, you know to visit AnnualCreditReport.com. This website is the ONLY authorized source for a free annual credit report that’s yours by law.

As of April 1, the Federal Trade Commission has amended their law to combat this confusion. The other websites that offer free credit reports (with the purchase of another item and/or service) will have to have a statement that says you have the right to a free credit report from AnnualCreditReport.com, the ONLY authorized source under federal law and provide a link. Never again will you have to pay for your free credit report.

In addition, the AnnualCreditReport.com home page will no longer display ads from the three credit reporting agencies (Experian, Equifax and Trans Union). Some were lured away with these ads and were charged a credit monitoring fee by the credit reporting agencies. After you’ve ordered your free report, you’ll see the ads, but it won’t be as confusing.

Note that the radio and TV advertisements have until September 1 to comply with this change. Free means free! Remember that anything for free should not have you buying another service.