TheState.com: Stretching Your Paycheck: Etc

How to protect yourself from ID theft

Fri, 08 Aug 2008 13:19 EDT

It is the largest case of identity theft in the country. More than 41 million credit and debit card numbers were stolen by an inter-national ring that hacked into the computer networks of nine national retail chains, including Barnes & Noble, BJ's Wholesale Club, OfficeMax and TJX Cos.

The August indictments serve as a warning to consumers. But they also can serve as a reminder to take a few simple steps to protect yourself from this kind of crime, which affects as many as 8 million Americans each year, costing billions of dollars and countless hours to correct the problems it creates.

By law, when a data breach occurs, a company is required to send a letter to notify customers of their possible exposure, said Steve Ely, a divisional president for credit reporting company Equifax Inc. But he said companies often downplay the problem to minimize damage to their reputation. "Ninety-nine percent of the time (breach letters) look like a piece of junk mail, and people throw them away."

That's a mistake. Such a letter may be the first indication that your personal information has been compromised.

And indictments like those announced Tuesday aren't likely to prevent your data from getting into the hands of other criminals, warned Paul Stephens, director of policy and advocacy at Privacy Rights Clearinghouse, a nonprofit in San Diego.

Are bank overdraft protection services worth it?

Sat, 19 Jul 2008 16:01 EDT

If you are known to bounce a check from time to time, you need a system in place to keep you from paying hefty fees.

But be aware of what protection you’re signing up for — “bounce coverage” for many people can be a waste of money.

What is overdraft protection? It’s an agreement that if you make a payment that exceeds your bank balance, your bank will pay the merchant automatically. Essentially, it’s a very temporary loan from your bank, so you can stay in good standing with the seller and avoid a returned-check fee from the merchant.

A bounced check with no protection usually results in a $20-$30 fee from the bank, as well as a $20-$30 fee from the merchant. With the typical overdraft protection plan, this penalty is cut in half — you only have to pay the bank’s $20-$30 fee as long as you put money back into the account quickly.

Still, that’s $20-$30 that you have to pay for the error — no small potatoes if you overdraw your account a few times a year, or if you are swiping your debit card for an entire weekend with-out knowing that your account is overdrawn. (Each overdraft prompts a separate fee.)

How to dial down your cell phone costs

Sat, 19 Jul 2008 15:17 EDT

If you have ever incurred cell phone fees, you know that they can sting. Depending on your plan, the penalty for going over your minutes can range from 5 cents a minute to 45 cents.

If you’ve regularly been getting slapped with fees regularly, it’s probably time to change your behavior /— or change your calling plan./ Amy Bickers, associate editor at Kiplinger.com, offers three ways to avoid cell phone fees:

Keep track of your minutes

Keeping track of your minutes is not hard, and it is certainly worthwhile. You can check how many minutes you have used on the Internet by setting up an online account with your phone carrier. You can also can check them on your phone, typically by calling into the phone company’s automated system.

Buy text messages in bulk

Negotiate your way out of bank, card fees

Sat, 19 Jul 2008 15:23 EDT

You open your bank statement or credit-card bill and there’s a new fee assessed to your account. Banks and credit-card companies make billions a year from such fees. To beat the fees, Kiplinger magazine has four tactics:

-Don’t get complacent

Part of the reason why so many customers end up paying fees is they don’t contest them. If fees show up on your account statement and you don’t agree, place a call to the bank representative. In most cases, if you are a good customer, banks will give you a break.

-Call on weekends

Few managers work on the weekends, and it may improve your chances of getting the fee excused if the manager is not around.

Shoring up your finances: Focus on fundamentals

Sat, 19 Jul 2008 15:27 EDT

Consumers are finding themselves caught.

Card companies are getting tougher, sometimes canceling unused cards or raising rates seemingly for no good reason. And 30 percent of banks said in a recent Federal Reserve survey that they had tightened standards on consumer loans.

The impact of running up debt and missing payments can be tremendous.

Say you have $5,000 in credit card debt and your interest rate is 12 percent. If you pay $100 a month you won’t pay off the card in full for almost 25 years. During that time you will not only have to pay off the original $5,000, but you also will be spending about $4,700 in interest.

If you miss a payment along the way, the pain can become much worse. Credit card companies often reserve the right to increase your interest rate to higher levels if you miss payments — even if your payment just was bogged down in the mail.

Find savings every day

Sat, 19 Jul 2008 15:29 EDT

--Use cash instead of credit cards. You'll be more aware of how much you're spending.

--Don't be afraid to buy second-hand goods. Used books, clothes and accessories can often be found online in good condition at a fraction of the retail price.

--Check cable, cell phone and banking statements for any services you may not need or even know you have.

--Go online to comparison sites before making any big purchases.

--Learn to cook and rely less on eating out. Eating just a few extra meals a week at home can add up to significant savings over time. --Try activities that don't cost money:; Hiking, card game nights, borrowing movies from the library, etc.

Top-ranked vehicles in J.D. Power's 2008 quality study

Wed, 04 Jun 2008 14:31 EDT

J.D. Power and Associates today released its annual survey of initial quality for 2008 model year vehicles, based on questionnaires from more than 81,500 new-vehicle owners.

These are the top performers and runners-up in each category. Activity vehicles refer to cross-overs and sport utility vehicles.

Sub-compact car: —Winner: Honda Fit —Runners-up: Kia Rio, Hyun-dai Accent

Compact car: —Winner: Honda Civic —Runners-up: Toyota Prius, Hyundai Elantra

Compact sporty car: —Winner: Mazda MX-5 Miata —Runners-up: Subaru Im-preza, Pontiac Solstice

How car buyers can negotiate for the best deal

Thu, 22 May 2008 16:31 EDT

Consumers in the market for a new car this year may be able to drive some hard bargains with some auto dealers.

J.D. Power and Associates is predicting that fewer than 15 million new cars will be sold this year, said Bob Schnorbus, the firm’s chief economist. More than 16 million were sold in 2007, according to the firm’s data. Though some dealers might be hungry to make a deal, don’t expect that they’ll give in to your offers without a fight.

In response to the cutback in demand, manufacturers have curtailed production to reduce supply — a factor working against the consumer in search of a bargain, Schnorbus said. Dealers are also cutting their orders to manufacturers, reducing the amount of inventory, he said.

Meanwhile, underwriting standards for car loans have gotten stricter, he said. And don’t count on huge incentives to ease the sticker shock either, he said.

“I don’t think that the auto companies are mentally or financially able to go back to wild incentive days,” he said.

What cars are the best gas sippers?

Thu, 22 May 2008 16:33 EDT

Best overall and midsized: Toyota Prius, 46 mpg

Compact: Honda Civic Hybrid, 42 mpg

Two-seater: smart fortwo, 36 mpg

Mini-compact: MINI Cooper (manual), 32 mpg

Subcompact: Toyota Yaris (manual), 32 mpg

Tips for pinching pennies -- for almost any situation

Fri, 09 May 2008 12:37 EDT

Here are a few suggestions for wringing excess expenses out of even the tightest budgets - whether you're preparing for a growing family, dealing with a job loss or trying to inflate that cash cushion just in case.

Several of the best ideas came from Christina Brown, also known as the Northern Cheapskate (www.northerncheapskate.com).

She's traded her career as an academic adviser to be a full-time mom whose new job includes not only taking care of her 2-year-old and 10-month-old sons, but also stretching dollars. "As my toddler says, `Daddy makes money, mommy saves it,'" she said.

-Tweak your insurance Raising deductibles on her car and home insurance put $30 per month in Brown's pocket. I saved about $100 annually by switching from monthly payments of my insurance premium to annual payments. Only you know if you are disciplined enough to save the lump you'll owe your insurer each year.

-Clip coupons, print coupons, use coupons Coupons are everywhere - online, printed from in-store kiosks, and inevitably heading toward cell phones. Yet of the $300 billion in coupon savings in 2006, shoppers saved just $2.6 billion, according to the Promotional Marketing Association.

How to reduce utility bills' rise

Fri, 14 Mar 2008 19:04 EDT

The silence of Joe Gilmore's heating unit on a blustery winter day is music to his ears and money in his wallet.

Every time the unit turned on - usually several times an hour - Gilmore said he just thought about the energy and money being burned.

Last year, Gilmore had more time to think about money. His job was sent overseas just as his college-bound son entered 12th grade.

It was not long before Gilmore, an engineer trained to solve mechanical problems, turned his quest to seal drafty nooks and crannies into a business promoting energy efficiency.

"One thing we know, the price of fuel is not going down, or if it does go down, it won't go down by much," Gilmore said.

'Se Habla Dinero?' offers financial guide to Latinos

Fri, 14 Mar 2008 18:29 EDT

Do you speak money? That's the query behind a new personal finance book aimed at Latinos, "Se Habla Dinero? The Everyday Guide to Financial Success."

Written by Lynn Jimenez, a longtime KGO radio (810 AM) business reporter in San Francisco, the bilingual book covers financial topics — buying, saving and investing — that speak to consumers in any language. Between her on-air stints last week, we caught up with Jimenez by phone to talk about managing money.

Q. What motivated you to write this book?

A. With what I've learned covering business at KGO for the last 17 years, there was never enough time to get all the information out in one-minute radio segments. And there are a lot of people who need translation ... not just from English to Spanish or vice-versa, but translation of financial and economic terms into everyday language they can understand. If we're going to be successful as a nation ... and as a state, we have to be sure everybody understands how to take care of themselves financially.

Q. Who's your audience? Is it first-generation Latinos and their families or a broader audience?

Forever stamps lock in today's prices

Fri, 14 Mar 2008 18:43 EDT

The cost of a first-class stamp will increase to 42 cents on May 12. But between now and May 11, it's possible to lock in lower rates by purchasing "Forever stamps." Introduced in April 2007, Forever stamps are valid first-class stamps regardless of future price increases.

Forever stamps purchased in April 2008 for 41 cents can be used to mail a first-class letter without additional postage even after the new rate kicks in.

"In this case, forever means forever. There is no fine print," says David Partenheimer, a spokesman for the U.S Postal service. "The Forever stamp is a big hit for us."

The Post Office already has sold five billion Forever stamps and plans to issue another five billion to fill demand. They are sold at the Post Office, over the Internet (www.usps.com) and by phone (1-800-stamp24).

Some financial speculators spot a long-term investment ploy that involves purchasing and hoarding large quantities of Forever stamps and watching the value of those stamps appreciate as a result of future rate hikes.

Mailing a letter will cost penny more in May

Mon, 11 Feb 2008 16:43 EST

It's time to stock up on Forever stamps.

The cost of mailing a letter will go up a penny — to 42 cents — on May 12.

But the Forever stamps will still be valid for first-class postage after that. And they can be bought for 41 cents until the new rates take place, postal officials said.

The post office has sold 5 billion Forever stamps since they were introduced last April and it plans to have an additional 5 billion in stock to meet the expected demand before the May price change, the agency said.

The charge for other services, such as advertising mail, periodicals, packages special services will also change.

How recent downturn will affect you

Fri, 25 Jan 2008 15:18 EST

Answers to consumers' questions about the economy:

What is happening to the economy?

The national economy is slowing. A slumping housing market and growing credit crunch are rippling through the economy as consumers and companies curtail spending, which in turn causes retailers to earn less. Economists at Goldman Sachs, Wall Street's largest investment bank, are among those who say these factors will cause a recession in 2008. But, Goldman's economists also say the recession will be short, and they expect the economy to pick up in 2009.

Are we in a recession? What is a recession?

Nobody can say for sure whether the economy is in a recession. The data used to define a recession have not been collected. A recession occurs when the economy shrinks for six consecutive months.

Five top car-leasing myths

Tue, 22 Jan 2008 15:02 EST

If you're shopping for a new car but want to avoid high monthly payments, consider the option of leasing.

Although often veiled in confusing language that dealers use to describe the terms and benefits of leases, negotiating smartly and dismissing some common assumptions can get you on the road without breaking the bank.

If you're torn between the benefits of buying versus leasing, consider the advice of automobile columnist Mark Solheim. In the February issue of Kiplinger's magazine, Solheim debunks the top five leasing myths.

Myth 1: Buying is cheaper than leasing.

This is true only if you keep a car well past the day the loan is paid. If you trade it in beforehand, the value of the trade-in will almost always exceed the remaining balance on the loan. You can expect to pay 30 percent to 60 percent less for the same car at the same price if you lease it short-term.

Not all hybrids are taxpayers' pals

Tue, 22 Jan 2008 15:08 EST

Green could turn into the new gold when it comes to promoting Earth-friendly cars and trucks. You can spot that marketing magic the minute you walk through the doors this weekend of the 2008 North American International Auto Show.

But if you get a little tempted - and maybe remember hearing something about generous tax breaks for hybrid cars and trucks - pay close attention to what you're buying. Buyers of the most popular Toyota hybrids no longer get a tax credit. And the Honda hybrids won't come with the hefty tax deals that they used to have, either.

This tax credit has always been tough to understand. Currently, the credit applies overall to qualified purchases of hybrid and lean technology vehicles sold from 2006 through 2010.

And right now, anyway, there's no credit for plug-in hybrids - even if some plug-ins make it to dealerships in 2010 or so.

Yet, the Alternative Motor Vehicle Credit, as it's officially called, varies based on manufacturer and model. The dollar amount of credits can change based on the fuel economy and weight of the model, as well as how many vehicles the manufacturer has already sold.

8 tips for a more financially fit 2008

Fri, 11 Jan 2008 19:19 EST

Here are eight financial resolutions for 2008 and suggestions for how to achieve them.

Resolve to ... 1. Save more. Shave a percentage or two off of your take-home pay and redirect it into your workplace retirement plan. Or set up an automatic transfer from checking to savings of whatever small sum you can afford. If money is too tight, vow to save any mini-windfall (birthday money, for example) that you see in 2008.

2. Spend less. Don't track your spending. Don't ditch your credit cards. No extremes are necessary. Glance over your credit card statements, bank transactions and monthly bills and find an area or two to place on a fiscal diet. Eliminate the home phone, get rid of premium cable, eat out fewer times a week. Then save your found money.

3. Stop fretting about the stock market. Turn off the stock shows. What with the declining housing market and recession fears, 2008 is not shaping up to be a feel-good year. Why torture yourself? Daily moves on Wall Street are of little consequence to most long-term investors. Devise your strategy and stick with it. Try a U.S. total stock market index fund, an international index fund and a bond index fund. Or select a life-cycle or asset-allocation fund that uses a fund manager to pick stocks and tweak the mix for you.

4. Pay on time. Set up automatic bill pay. Or do what I do: Charge your bills if you pay your credit card balance in full each month. I earn rewards points for the transactions and it cuts down on the number of due dates I need to remember. If you're paying late because cash flow's tight, automating might have the unintended con-sequence of triggering overdraft fees and charging bills could in-crease debts. Map out your payments on a calendar instead (and remember to look). Some banks offer e-bill alerts as well. Or use a free site such as www.Mint.com to remind you when bills are due.

Finding day care — for your parents

Fri, 11 Jan 2008 19:23 EST

On any given day, Luther Manor, in the suburbs of Milwaukee, provides day-care services for 58 people. Demand has grown in recent years, and the center has no more slots. Now it's looking to build a satellite campus.

But the people left in Luther Manor's care every morning by commuters aren't children, they're adults — the parents of the folks rushing off to work.

It's a scene played out every day at more than 3,500 day-care centers across the U.S., as baby boomers and others seek quality care for frail parents unable to stay at home alone. Some are looking for relief from the care they're providing around the clock. Others want an option that lets them go to work but is more affordable, reliable and stimulating than hiring a home health-care aide.

The result is that adult day care, an industry that began in church basements with bingo and bag lunches, is becoming an increasingly important player in the burgeoning business of elder care.

National data are sketchy, but individual facilities around the country report demand is growing at between 5 percent and 15 percent a year, depending on location. The National Adult Day Services Association, a trade group, reports that these centers care for about 150,000 residents daily. But the actual number enrolled is much higher, since not every person enrolled in a program attends each day. By some industry estimates, adult day care serves at least 400,000 people nationally.