Jill Russo Foster

Will Your Bank Fail?

With banks failing at record numbers, you want to make sure that you keep you money safe With over 100 banks failing this year alone, you want to make sure your money is safe in the bank After all you worked hard for it and you shouldn’t lose it because your bank fails.

The FDIC (Federal Deposit Insurance Corporation) insures bank accounts and the NCSIF (National Credit Union Share Insurance Fund) insures credit unions These two government agencies will reimburse you if you bank with one of their insured banks / credit unions up to their limits.

This is what you personally have to do First make sure you are banking with an FDIC or NCSIF institution You would check this out by going to www.FDIC.gov and then clicking on the Deposit Insurance tab and finally on Bank Find Here you can look up your bank to see if they are part of the program If not, move your accounts to a bank or credit union that is insured.

If you are at a bank that is insured, you need to make sure you accounts are covered with the limits If you have more than $250,000 in one bank (that includes all the different bank locations), then you need to check to see if you are covered or need to move part of you money into bank Take these steps so that your money is secure and is there when you need it.

No More Credit Card Payment Fees

The New Credit Card Act of 2009 takes effect on February 22, 2010 To help you prepare, my blog will feature Nine Tips over the next three weeks.

Tip Number Two

Have you ever gone out of town and arrived back home to find out that you have a credit card payment due tomorrow? Like most people, you probably got on the phone, or online, to make the payment because you wanted to pay right away You also probably got charged a nice little fee for not sending a check through the postal service like a good little credit card owner.

With the new Credit Card Act of 2009, you will not be charged a fee to pay your credit card, unless you specifically ask to have your payment expedited (which means that you asked to have it rushed through).

New Minimum Age for Credit Cards

The New Credit Card Act of 2009 takes effect on February 22, 2010. To help you prepare, my blog will feature Nine Tips over the next three weeks.

Tip Number One

Twenty-one is the new minimum age to apply for a credit card according to the Credit Card Act of 2009.

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.

Teleseries about college for teens & parents

I’m planning a teleseries for teens and parents about college. What topics are you interested in learning more about? Let me know so I can answer your questions.

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.

Credit Card Shaving is Cut and Paste Fraud

Credit Card Shaving – it sounds like what you would say if you were cutting back on your credit cards, but that’s not what it means. This is the latest credit card scam and there is nothing you can do to prevent it. Isn’t that scary?

Credit Card Shaving Q & A

How do they get your credit card number? They get it through guesswork, not by theft. The thief makes a random list of 16 digit numbers. Then he tries to make purchases online with different combinations. If one works, then he knows he has a legitimate account.

Why is it called “Credit Card Shaving?” The thief literally shaves the raised numbers off of other credit cards (usually cheap gift cards) and glues them onto a new card in the correct order. The card looks legitimate. He can even use his own ID to prove the card is his.

How does he change the magnetic strip? The thief doesn’t need the magnetic strip, he just “scores” or scratches it so it can’t be used in the automated stripe reader. This forces the cashier to manually enter the numbers that are glued to the card.

What can you do about it? Always monitor your accounts. Check statements for unusual purchases. If you can access your accounts online, you can check more often.

Is it time-consuming to monitor your accounts? We treat credit cards like pre-approved micro-loans, or feel they’re safer than carrying cash because they can be canceled if stolen. In reality, the more cards you have, the more work is required to watch over them.

Can you save a year’s worth of income?

Can you save a year’s worth of income for your emergency savings account? Yes, you can. Here are some steps to get started:

Be patient. You won’t save a year’s worth of income in a single year. Work out how long it will take by determining how much you can set aside each month. If it takes 3-5 years, then so be it. Five years will go by whether you save money or not, so you might as well have something to show for it.
Set aside a firm amount from each paycheck. Think of it as a monthly or weekly bill you owe yourself. You can even automate the process so it’s deducted from your paycheck like taxes or insurance.
No take backs. Your savings account deposit should be just as irrevocable as your mortgage payment or utility bills. You can’t call the gas company and ask for your payment back so you can buy a new outfit. Don’t take money out of savings for anything less than a real emergency.
Reduce expenses. There are so many ways to cut back, especially when you know it’s temporary. Do you have cable TV, a gym membership, an expensive stylist? Give those up for a few years. As soon as you have a year’s worth of savings, you can go back to the way things were.

Remember, saving money is not a sacrifice because the money is ultimately yours.

How safe is a safe deposit box?

I have often told you to use a safe deposit box (SDB) to store copies of your most important paperwork. That way, if something happens to your home, you can deal with the emergency with all your paperwork intact. But people also use SDB’s for items that they consider irreplaceable, like jewelry or stock certificates. While it’s not necessarily wrong to use an SDB this way, you should be aware of the risks.

Safe deposit boxes are loss resistant, not loss proof. You can lose the contents of your SDB if something happens to the bank itself. Consider what could happen if your bank is in a fire or flood. SDB’s are typically made of metal. They are not water-proof or heat-proof, which means the contents could melt, be scorched, or water damaged. Store paper documents in a water-tight plastic bag. Keep back-up copies of flash drives or photographs. Metal items, like jewelry or antique coins, should be stored in a hard-plastic container to help prevent melting.

You should also know that you will NOT be reimbursed by FDIC for the value of jewelry or antique coins stored in an SDB. The FDIC only reimburses the cash in your bank account, not personal property.

You will also NOT be reimbursed by your renter’s or homeowner’s policy (unless you have the items insured separately.)

Finally, know that your SDB is a rental. Keep up on payments or the contents will be turned over to your state’s Unclaimed Property department. A safe deposit box is a great resource, if used wisely.