Jill Russo Foster

Tips for Successful Personal Finances

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Identity Theft is on the Rise

It’s up to you to take precautions.

Take these steps to protect your identity:

  • Beware of solicitations asking for your personal information. They might call, email or text.  If you didn’t initiate the communication, don’t give out your information. If they claim to be from customer service, hang up and call the number found on your statement.
  • Review your bank and credit card statements and question any activity you are unsure of.
  • Be careful with your paperwork.  Take your receipts with you when you make a purchase or use an ATM.  When it’s safe to dispose of old receipts, statements, or other paperwork containing your personal information always shred them. Never just throw them away.
  • Review your credit reports a minimum of three times per year for incorrect information and dispute it.
  • Keep your home computers up to date with antivirus software.  Remember, it can get outdated quickly, so do your updates on a regular basis.
  • Change your internet passwords regularly.  Don’t use easy to guess passwords.
  • Make sure you pick up your incoming mail as soon as possible and never use your home mailbox for outgoing mail.  Always bring it to the post office or a mailbox.

None of these precautions will help you if someone has stolen your information from the database of a company you deal with.  But, if you are vigilant about your identity, you can catch any fraudulent activity early on.

Before you head out for your summer vacation…

Take these precautions so you can enjoy a safe and worry-free trip.

Call your credit card companies to let them know where you will be.  Your credit card company will know it’s you making the charges and will let them go through.

Put a hold on postal mail, newspapers, and any other regular deliveries before you go. You don’t want mail piling up advertising a vacant house.

Clean out your wallet.  Remove all items that will not be necessary (that includes your checkbook).  Carry two credit cards, and if you are traveling with someone, have different credit cards in case one wallet is stolen.

If you need to use an ATM, use one at a bank (preferably in a lobby).  They are less likely to be tampered with.

Be careful when using hotel computers and Wi-Fi networks.   Do not access your financial accounts as identity theft can be right around the corner.

Beware of fake calls from the “front desk”.  If you receive a call from the hotel front desk telling you your credit card didn’t go through, it could be a scam.  Thank the caller, and then go to the front desk in person to straighten this out.  Never give your personal information over the phone to someone who calls you.

Taking a few precautions before, and during, your vacation may save you from financial troubles when you get back.

Clean out your wallet before you take a vacation

Wallet lost on beachWhile you’re packing your suitcase, don’t forget to properly pack your wallet. You want to bring only those items necessary for your trip.

This is one of those little tasks many people forget before leaving home on a vacation, a long weekend, or any other trip.

For example, you might want to carry only one or two credit cards. If you’re traveling with a spouse, don’t carry the same credit cards.  If one of you loses his wallet and has to cancel the VISA card, you could still have your MasterCard or American Express.

What about the cards you leave at home? They should be locked up in a safe place (not left in a drawer). It’s impossible to keep your travels secret. The wrong people might know that your house will be empty for the next week.

But, back to your missing wallet. How did that happen? Did you forget it somewhere, or did you leave it unattended in the wrong place?

You may feel paranoid about leaving your wallet back at the hotel, but it’s much worse to keep your valuables in a beach bag while you’re in the water.  Most hotels have safes which allow you to lock up you valuables before you head to the beach.

What if you’re just at the beach for the day? Leaving your wallet in the car is not a great choice, either.  Parking lots near tourist destinations are popular targets. If you have to leave it in the car, keep it in a not-so-obvious place so it’s not easy to find in a smash-and-grab.

Taking a few simple steps to protect your wallet, and your identity, ahead of time can save your vacation, and hours of your valuable time. You don’t want to have to clean up an identity-theft mess after your vacation.

When you co-sign, you’re responsible for payments

When you co-sign a friend’s loan, you are taking out a loan.  Yes, you read that right!

You are agreeing to make the payments if the borrower does not. But, the borrower is your friend and he would never do that to you, right…?

… Maybe. Not on purpose, but if he’s not very good with money, or has money troubles, it could “just happen.”

A lender only asks for a co-signer if the borrower isn’t creditworthy on his own.  The lender could have good reason if your friend has a poor credit history, or doesn’t make enough money for a loan of that size. Or, it could simply be that the lender has no proof that your friend is good with money, because your friend has never taken out a loan or had a credit card before.

Because they are unsure about your friend, they’re counting on you to step up and take responsibility if things go badly.

Remember, if your friend doesn’t make the payments in a timely manner, or doesn’t make them at all, it will show up on YOUR credit history as well as his, and hurt your credit score.

If your friend is too embarrassed, or too disorganized, to tell you that he hasn’t been paying the loan, you might have to make a really big payment to get the loan current again.

And by then, the damage to your credit score will already be done. It will take years for the late payment history to drop off your report.

I know you want to help your friends, but, think carefully before you make a decision that could change your finances for the worse.

It’s May! Relax this summer knowing you’ve checked your credit!

It’s time to order your next credit report
This month use Equifax

Hello everyone! This is your quarterly reminder from me.
Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

  1. Select your state, then click Request Report.
  2. Fill out your information, then click Continue.
  3. When it asks you to select a service, select Equifax.

Not comfortable ordering online? There are three ways you can order your report:

It doesn’t matter how you get your report, the most important thing is that you do! Then…

  • Review it for accuracy!
  • Follow the instructions with the report to correct any errors.
  • And, always remember to keep copies for your records.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

May you have a sunny and profitable summer!

Jill Russo Foster

P.S. You will receive another reminder in September, allowing you to stay up-to-date on your credit throughout the year.

Don’t Pay a Service! You Can Easily Monitor Your Own Credit

Credit Report Shock

Identity theft is one of the biggest fears plaguing consumers these days. It was interesting to catch a scene on a crime show recently where a waitress is caught hiding a portable credit card swiper under her apron, then using it to steal her customer’s credit card information. YES, this does happen in real life.

Identity theft isn’t the only thing that can hurt your credit. Banks make mistakes, family members make late-payments on jointly shared accounts, you might have a payment dispute with a fraudulent company. I could go on, but you get the idea. Life happens.

The only way to protect yourself is to consistently monitor your credit. Most people believe that you have to pay an outside company to have your credit monitored. I disagree! I do it myself.

Once you get in the habit of monitoring your credit, it gets easier and becomes an almost compulsive habit. You’ll feel that you have much more control over your life and finances.

How to Monitor Your Own Credit

1. Look over your credit report three times per year minimum. You can do this by visiting www.AnnualCreditReport.com and ordering one report every four months. It’s completely free.  If you subscribe to Quick Tips, you’ll get a reminder email with instructions in January, May and September.

2. Check your credit score at www.CreditKarma.com every month to see if there are any changes. This is also free. Monitoring changes in your score can alert you to hidden issues.

3. Monitor your bank accounts (checking, savings, etc.) to see if there are any unusual transactions.  Most banks have online access, so you can easily check any time you get online. My virtual bank accounts actually email me with every transaction, so that’s an added plus.

4. Monitor your credit card accounts. I get online and check each and every account to see what’s happening. I do this every week or so, just to be on the safe side. These days, people can even scan credit card information through your wallet or purse from a distance. It doesn’t hurt to be careful.

Yes, taking these steps can take up some time, but it’s well worth it. Even with my busy schedule, I am able to find the time to monitor my credit. I am comfortable checking my accounts and credit, and I don’t feel it’s necessary to pay for a monitoring service. You may not find that it’s worth your time, but remember, it’s absolutely free to give it a try.

3 Important Tips for Paying off Credit Card Debt

Last Thursday, I talked about balancing debt repayment with building an emergency savings fund. This is the second part of that post.

For the actual pay debt repayment, there are two ways to do this.

If you  are the type of person that needs to see forward movement to keep you motivated, then pay off the smallest credit card balance first, then work your way to the next smallest until you’re done.  This will give you a feeling of reward and the financial momentum to keep this going.

If paying interest rates and fees bothers you, you will want to pay off the highest interest rate credit card first and then work your way down to the lowest interest rate.  You will have the satisfaction of paying less and less in interest charges each month.

Either way excessive credit card debt is the enemy of your budget.

Live within your means.

Because your credit is so important to your finances, you will have to find a way to live within your means. That means only using your credit cards when you know that you can pay them off in full each and every month.

So many people struggle with credit card debt.  Just as they get their debt paid off, something happens and they are in debt again.  You can use your cards for the consumer protections and to keep a healthy credit score, but learn to use your credit cards the way you would a check or debit card – keep your purchases within your monthly cash flow.

Balance Debt Repayment with Savings

I get asked all the time for advice on credit card debt.  We all know that credit card debt is the enemy of a monthly budget. Your money has better things to do than paying down finance charges and interest.  But, if you are currently in debt, then you need to do something about it.

Most of my clients want to know the best way to pay off their credit card debt. Most people ask me if they should put all their resources into debt repayment. My answer to that is “no”. There is one thing that I believe everyone should do while paying off credit card debt – build an emergency savings fund.

You are probably saying that you have no money to save! I’m telling you that you need to find the funds.  Your credit card debt may seem like your biggest priority, but if you take all your extra money to pay down debt, then you will find yourself running up credit card debt any time an unbudgeted expense pops up. These unexpected budget breakers are such regular events that we should learn to expect them. Your car breaks will need to be replaced, an appliance will need a new part, the roof will need new shingles. It’s inevitable. I could go on, but you get the idea.

You need to find a balance in your budget with savings on one side and debt repayment on the other.

The easiest way to build an emergency savings account

Each pay period you should have some money automatically transferred from your paycheck to a savings account. Start out with a small amount on a regular basis. That way you won’t feel the pinch and you will be setting aside money to use when something unexpected happens so you won’t have to use your credit cards.

A good way to pay off debt

To pay down your credit card debt:

  1. Make a detailed list of each credit card, the amount owed, the credit limit, the interest rate(s) and minimum payment amounts
  2. Look at your options – can you transfer the highest interest rate debt to a lower interest credit card (maybe you have room on a credit card you already have)?
  3. If you are considering opening up another credit card, please think before doing so. There a number of factors that are involved here .  Check my website www.JillRussoFoster.com for the five factors that make up your credit score.

On Monday, I will talk about paying down your debt.

Maybe you CAN refinance

Are you tired of hearing about low mortgage interest rates?  You’re not alone. Many of us don’t have enough equity in our homes to refinance – thanks to falling home prices. Homeowners who are underwater need rate reductions more than anyone, but they’re finding it difficult to get them.

If you have a FNMA (Fannie Mae) or FHLMC (Freddie Mac) mortgage, and are current with your payments, there might be a way for you to get a lower rate. The Home Affordable Refinance Program (HARP) has been extended. This program was established in 2009 and is designed to assist people who cannot refinance with traditional mortgages because their property values are too low, and therefore do not meet underwriting qualifications.

There are guidelines that have to be met:

  1. The mortgage must be a Fannie or Freddie mortgage.
  2. The payment history must be current and not have any late payments in the recent past.
  3. You must live in the home. This does not apply to investment property.
  4. You must be able to afford the new payment.
  5. The new payment must be more affordable or more stable.

You may want to look into this program – especially if you have an adjustable mortgage and are planning on staying in your home. This is a great time to get that rate fixed. I don’t think they can go any lower.

You will need to discuss your individual circumstances with your lender to see if you qualify.  Talk to your mortgage professional today! You never know when the rates will go up.

It’s January! Time to start the year off right!

It’s time to order your credit report
This month use Experian

Hello everyone! This is your quarterly reminder from me.

Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

  1. Select your state, then click Request Report.
  2. Fill out your information, then click Continue.
  3. When it asks you to select a service, select Experian.

Not comfortable ordering online? There are three ways you can order your report:

It doesn’t matter how you get your report, the most important thing is that you do! Then…

  • Review it for accuracy!
  • Follow the instructions with the report to correct any errors.
  • And, always remember to keep copies for your records.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

May you have a blessed and successful year!

Jill Russo Foster

P.S. You will receive another reminder in May and September, allowing you to stay up-to-date on your credit throughout the year.