Delete All Debt: How to reduce debt, improve your credit score and prevent identity theft

Identity Theft And Your Taxes

2009-06-09T17:06:00.004-06:00

Save Money With Team National

2009-06-03T12:28:00.003-06:00

I have been a member of Costco and Sam's club for several years. Recently, a friend, described a program that I had never heard of called Team National to me. I don't like the idea of network marketing, MLM or home-based business schemes, but what impressed me was the savings that this program offered on everything from consumer products to things like health insurance, mortgages and financial services. From what I can tell, the program is legitimate. It hasn't been the subject of any federal or state attorney general consumer protection actions, it is publicly traded, and it has been around for the past 12 years. I had been considering joining Direct Buy; however, they wanted a $6500 membership fee in order to get their discounts. Team National discounts are substantial, and available even if you do not join their program. That's more than I can say for either Costco and Sam's Club.

2009-05-20T12:48:00.001-06:00

http://ping.fm/2mhVH estate planning info

Protect Your Family With The Right Estate Plan

2009-05-20T11:19:00.002-06:00

Even in these hard economic times, it is important to protect yourself and your family with an estate plan. Proper estate planning deals with situations other than your death. For instance, during your lifetime, you have a 60% chance of becoming disabled. Your estate plan should provide for another person to be able to make medical decisions on your behalf in the event that you are unable to do so. Also, it should allow for someone else to be able to step in and take control of your finances while you are disabled. Finally, if you have children,it should designate how and by whom they will be cared for. By having an estate plan in place, you can save yourself and your family thousands or hundreds of thousands of dollars.

2008-11-29T14:42:00.001-07:00

Trying to write funny songs for an end of the year show. Any ideas?

2008-11-24T15:10:00.001-07:00

Trying new affiliate marketing product. http://ping.fm/AwLym

Five Ways to Prosper During The Obama Administration

2008-10-29T13:32:00.000-06:00

How To Get Out Of A Car Lease Before Your Contract Expires

2008-09-10T16:10:00.003-06:00

How To Get Out Of A Car Lease Before Your Contract Expires

When your lease is up, you can simply turn in the keys and lease another car or buy a new one. But how about getting out before the lease ends? Perhaps you can’t afford the sky-high payments on that Lexus RX-7 anymore or need a more fuel efficient car. There is good news and bad news. First, the bad news. A car lease contract is difficult and expensive to terminate early. Simply turning in the keys and walking away from a lease will result in stiff penalties. You credit could be ruined and you could even get sued for breach of contract.

It’s not all doom and gloom though. Actually, there is a number of options available to you. You can sell the car yourself and pay off the balance of the lease. This can be cost effective if the market value of the car is close to the buy-out number. Do not hesitate to exercise this option even at a loss if it happens to be lower than the termination fee. Your best option, though, is to transfer your lease for someone who would buy your lease and take it off your hands. many potential buyers are looking for short-term leases without all the hassle and extra costs. Check with family and friends or use the services of lease- assumption websites, such as LeaseTrader.com to list your car.

11 Charged in Nation's Largest Credit Card Fraud and Identity Theft Case

2008-08-05T18:41:00.001-06:00

11 people were charged with stealing over 41 million credit and debit card numbers. This case is the largest identity theft case ever brought by the Department of Justice. It involves people from Estonia, Ukraine, Belarus and China who apparently hacked into retailer's computer networks including Office Max, Barnes and Noble, Boston Market and others. The theives used a technique known as "wardriving" in which they drove around looking for accessible wireless Internet signals. Once they found a signal they installed "sniffer programs" that captured credit and debit card information that passed through the retailer's processing networks. They stored the information on two servers in Latvia. The ringleader was working as an United States Secret Service informant at the time of the thefts.

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IRS Has Answers to Questions People Are Asking About Economic Stimulus Payments; IRS Urges People to Visit IRS.gov

2008-05-18T14:44:00.002-06:00

WASHINGTON — As millions of Americans begin receiving their economic stimulus payments, the Internal Revenue Service released a list of the most-frequently-asked questions –– and answers –– that people now are asking.

“Many people have questions about the stimulus payments, and the IRS has the answers available on the IRS.gov Web site,” IRS Commissioner Doug Shulman said. “The stimulus payments are automatic for eligible taxpayers who filed a 2007 tax return, and taxpayers do not need to take any additional action to receive the payment.”

Stimulus payments started going out last week, and the initial round of payments will continue on a weekly basis through mid-July. In all, nearly 130 million payments will go out this year. Last week, 7.7 million payments were direct deposited, and the first mass production of paper checks begins Thursday.

Since last week millions of Americans have visited IRS.gov and called the IRS toll-free lines. The IRS reminded taxpayers the fastest way to get answers is to visit IRS.gov, which has payment schedules and other information.

Since the payments began, the IRS has been fielding a variety of questions centered on the payment schedule, factors affecting direct deposit of payments, eligibility requirements and questions about the payment amounts. The IRS today released an updated set of Frequently Asked Questions covering everything from when someone can expect the payment to whether it will be delivered electronically or on paper. A link to these Frequently Asked Questions can be found at the bottom of this page.

The most common question has been when people can expect their payments. Economic stimulus payments will be issued according to the last two-digits of the taxpayer’s Social Security number. For joint filers the payments will go out based on the last two digits of the Social Security number of the person listed first on the return. Payments will be made by either direct deposit or paper check, based generally on the option people chose when they filed their 2007 tax returns.

The payment schedule below is for people who filed early enough to have their tax returns processed by April 15.

Most Frequently Asked Questions

Be Careful When Using Bluetooth

2008-05-09T11:30:00.001-06:00

Bluetooth gives spies a window into your lifeWorried about your civil liberties and privacy? Then it may come as a shock to discover that you have unwittingly been allowing your phone to signal your every move.

Bluetooth, a wireless link built into many cellphones, makes our movements trackable by anyone equipped with a PC and an appropriate receiver. Vassilis Kostakos at the University of Bath in the UK placed four Bluetooth receivers in the city's centre. Over four months, his team tracked 10,000 Bluetooth phones and was able to "capture and analyse people's encounters" in pubs, streets and shops.

Bluetooth is now more of a privacy threat than the more frequently publicised RFID chips, Kostakos says. "If people are worried, they should turn off the Bluetooth function on their mobile phones."

Five Ways to Spend Your Economic Stimulus Check

2008-04-30T08:49:00.004-06:00

1. File Bankruptcy and Help The Economy

Since the purpose of the economic stimulus plan was to help Americans who were overburdened by high interest rates, credit card balances and sub-prime mortgages pay their bills, why not make this your last credit card payment. If you filed bankruptcy yourself, you could do it for less than $600. If you are married, you could hire an attorney to do it for you with your $1200 payment.

2. Buy a Wii Fit

According to their Website : “The active-play phenomenon started by Wii Sports now spreads to your whole body thanks to the pressure-sensitive Wii Balance Board (name not final), which comes packed with Wii Fit. The board is used for an extensive array of fun and dynamic activities, including aerobics, yoga, muscle stretches and games. Many of these activities focus towards providing a “core” workout, a popular exercise method that emphasizes slower, controlled motions. Family members will have fun staying active and talking about and comparing their results and progress on a new channel on the Wii Menu.”

3. Let The Government Buy Your Next Gun and Ammo

Citizens Committee For The Right to Keep and Bear Arms (CCRKBA) Chairman Alan Gottlieb thinks it would be a boon to America's firearms industry for that money to be spent on pursuits guaranteed by the Second Amendment, while also providing jobs and paychecks, and creating new jobs for people in the industry. "This is our money, anyway," Gottlieb said ofthe stimulus checks. "If we weren't paying it in taxes to begin with, it would still be in our bank accounts and wallets, and we would already be spending that cash on a new rifle or shotgun, perhaps a new handgun and ammunition, shooting accessories and other equipment. "Set some cash aside to buy gasoline for a trip to the range," he added, "and don't forget that with every firearm and ammunition purchase, Americans contribute to the Pittman-Robertson federal excise tax program that supportsstate wildlife agency programs, including hunter education. Not only will these purchases provide a much-needed boost to the gun industry, they allow gun owners an opportunity to take more than just a symbolic swipe at anti-gunners and anti-hunting groups."

4. Buy Fine Wine and Spirits

You can get a bottle of 1908 Bual Madeira for $534.00. Everyone should try a 100 year old wine at least once in their life. Or you could buy a 40 year old bottle of Old Fettercairn single malt scotch for around $700.

5. Go to The Ball-Park or Playoffs

Even though it is the regular season, you can easily spend $600 on baseball tickets. At Yankee Stadium, $600 buys one seat behind home plate. In Colorado, you could get a 25 game package for $625. If baseball is not your game check out the NHL or NBA Playoffs. According to Stubhub.com, two nosebleed seats for the Lakers' next series cost about $600. The NHL is a better value, you can get 3 seats to the Red Wings' next series for $575.00.

The Economic Stimulus Check – When Will You Receive It?

2008-04-30T08:44:00.001-06:00

According to Marketwatch.com, the economic stimulus checks, for tax returns filed by April 15, will be mailed according to the last two digits of your social security number. Here is the schedule:

Direct deposit payments
If the last two digits of your Social Security number are: Your stimulus payment should be sent to your bank account by:
00 - 20 May 2
21 - 75 May 9
76 - 99 May 16
Paper check
If the last two digits of your Social Security number are: Your check should be in the mail by:
00 - 09 May 16
10 - 18 May 23
19 - 25 May 30
26 - 38 June 6
39 - 51 June 13
52 - 63 June 20
64 - 75 June 27
76 - 87 July 4
88 - 99 July 11

US Treasury Department Identity Theft Video

2008-04-25T19:01:00.000-06:00

Anatomy of a “Nigerian Letter” Scam Part

2008-04-25T11:42:00.000-06:00

Here is a letter I received by email today. It is a variety of the “Nigerian Letter” or 419 Scam whereby identity thieves attempt to obtain information in order to commit identity theft or other crimes. I receive at least ten of these letters per week this is one of the better ones. The writer claims to be from Togo and at least names a real city in that country. I have reprinted the letter in full and the reasons why it is an obvious scam. When I receive their reply letter I will post it as well.

Dear Friend,

May the peace of our Lord be upon you and your family.

I crave your indulgence at this mail coming from somebody you have not know before. I decided to do this after praying over the situation. You should please consider the transaction on its content and not the fact that you have not known me before. I need not dwell on how I came by your contact information because there are many such possibilities these days.

I would like to introduce myself as Mrs. Charite Habibi, of Repulic of Togo, widow to Late Mr. Usman Habibi (former Consular of the Togo Embassy in Madrid - Spain ) .I have been recently been diagnosed of Cancer of the Pelvics.

I am writing from my sick bed. There is this US$10.5Million my husband deposited with my name in a bank, here in Lome, Republic of Togo. With my health condition and because my husband and I have no children, I am looking for a credible person to whom I will pass the right of next of kin.This person will apply to the bank and request from them, the procedure towards retrieving the fund from them.This is on the condition that you will take 25% of the fund for yourself, 5% used for expenses, while you will use the remaining 70% for the less previlege people in the society. This is in fulfilment of the last request of my husband: that a substantial part of the fund be used to carter for the less previleged.

If this condition is acceptable to you, you should contact me immediately with your full names and contact information so that I will send you the document that the bank issued on my name when the funds was deposited. So that you will contact the bank directly, and demand from them the procedure towards the release of the fund to you from their bank. I cannot predict what will be my fate by the time you wll recieve the fund, but you should please ensure that the fund is used as I have described above.

I will be most grateful if you can come forward and help me so that I will give you more details and the contact details of an attorney I have told about the matter.

Please think about this project and give it a second thought before you Consider this and get back to me as soon as possible. Finally, it is my humble prayer that the information as contained herein be accorded the necessary attention, urgency as well as the secrecy it deserves.

I Expect your urgent response if you can handle this project. Email me back for more details.

Respectfully yours,

Mrs. Charite Habibi .

How do we know that this is a scam:

1. It is too good to be true. Wealthy people do not contact strangers offering to give them large sums of money for free. If a deal is too good to be true, rest assured that it is.

2. This email came from charitehabibi@yahoo.com. Why would a widow in Togo have an American Yahoo Account?

3. A Google search for “Usman Habibi” produced another copy of the same letter on a bulletin board on a French language website www.lepost.fr as a comment to an article about drinking bottled or tap water.

4. The same letter was posted on March 15, 2008 at http://www.419baiter.com/_scam_emails/419_emails_13025.html by Mrs. Faith Ali. Who also clamed to be the widow of Usman Habibi. It is quite a coincidence that Mr. Habibi had two wives, left $10.5 Million to each, and that both of them developed “cancer of the pelvics”.

5. A search of the telephone directory in Madrid showed no listings for a Togo embassy in Madrid. In fact, Togo only has embassies in Brussels, Paris, Ottawa, and Washington DC.

It is important to note that these scammers use made up names when sending these letters. If Usman Habibi, Faith Ali or Charite Habibi even exist in all likelihood, they are also innocent victims of these con artists.

Highlights of the Proposed Credit Card Holders' Bill of Rights

2008-04-18T10:01:00.001-06:00

Senator Robert Menendez (D-NJ) and Representative Carolyn Maloney (D-NY) have proposed sweeping legislation called “The Credit Cardholders' Bill of Rights” aimed at reforming credit card industry abuses and improving consumer protections.

Senator Menendez’ legislation is set forth in two bills, The Protection of Young Consumers Act and The Credit Card Reform Act. According to Senator Menendez’ website:

“The Protection of Young Consumers Act will protect people, especially college students and other young people, against skyrocketing consumer debt and the barrage of credit card solicitations that lead to it. The proposal will: 1) build on the current “opt-out” provision regarding pre-approved credit card offers by prohibiting credit card solicitations to consumers under 21 unless they proactively “opt-in” to receive such solicitations; and 2) establish a financial literacy and education program in elementary and secondary schools to help prepare young people to be financially responsible consumers.

The Credit Card Reform Act will also protect consumers against excessive fees and interest rates. It will: 1) prohibit “universal defaults” in which a credit card company imposes excessive increases in interest rates for events completely unrelated to the payment history on that account; 2) restrict excessive late fees; and 3) tighten regulations on credit card companies to ensure that they are not offering credit to high-risk cardholders without verifying their ability to pay.”

Representative Maloney’s Bill goes farther. It requires credit card issuers to provide 45 days notice of interest rate increases and allows them to cancel their accounts and pay the balances off at the prior interest rate for three billing cycles. It bans credit card company’s policies of “any-time, any reason” re-pricing of interest rates; prohibits “two-cycle billing”; and prohibits credit card companies from charging late fees whenever a card holder provides proof of having mailed their payment within 7 days of the due date.

Yesterday, representatives for credit card companies had a chance to testify, and said by basing rates on an individual's risk profile, they've been able to extend credit to more consumers. The proposed bill, they said, would jeopardize that. " You will indeed see two things happen -- an increased cost of credit and reduced access to credit to those people who need it most," said Carter Franke, marketing executive with JP Morgan Chase.

The Federal Reserve is also looking at industry practices and reviewing regulations that govern the credit card issuers. The fed is expected to impose new rules later this year.

New E-Book Explains IRS Settlement Procedures

2008-04-14T17:46:00.006-06:00

Having tax problems can be a trying experience. I have just written a new e-book The Insider's Guide to Settling Your IRS Tax Debt. It explains the various ways that you can settle your debt to the Internal Revenue Service. It includes detailed step-by-step instructions and links to the correct IRS forms. Lots of companies, such as J.K. Harris and Company and American Tax Relief charge high fees for preparing these documents. You can do it yourself and save thousands of dollars in the process.

1000 Real Millionaires Reveal Their Top 13 Success Secrets

2008-04-02T11:57:00.001-06:00

Lessons we all need to learn from and take to heart: 13 lessons from millionaires on how to achieve wealth. Like having a supportive spouse, finding good mentors and living below your means (huh?)

read more | digg story

Settling IRS Debts and your Home

2008-04-02T10:59:00.001-06:00

QUESTION: Is it possible to settle tax debt to the IRS without giving up your home?ANSWER: You may establish various payment arrangements to pay your tax debt with the IRS. Regarding your residence, the IRS may not seize any real property used by you as a residence to satisfy a tax liability (including penalties and interest) of $5,000 or less

read more | digg story

What To Do if You Can't Pay Your Taxes -- Part 1

2008-04-01T16:33:00.002-06:00

Here is information from Wikipedia concerning the IRS Offer In Compromise Program which lets people settle their past tax debt, sometimes for even less than the amount owed. In future posts, I will discuss other strategies for dealing with the IRS when you can't pay your taxes. I hope that you find it helpful.

The Offer in Compromise (or OIC) program, is an IRS program under 26 USC 7122 which allows qualified individuals with an unpaid taxdebt to negotiate a settled amount that is less than the total owed to clear the debt. A taxpayer uses the checklist in the Form 656, Offer in Compromise, package to determine if the taxpayer is eligible for the offer in compromise program. The objective of the OIC program is to accept a compromise when acceptance is in the best interests of both the taxpayer and the government and promotes voluntary compliance with all future payment and filing requirements.

Qualifying conditions

At least one of three conditions must be met to qualify a taxpayer for consideration of an OIC settlement:
• Doubt as to Liability — Debtor can show reason for doubt that the assessed tax liability is correct
• Doubt as to Collectibility — Debtor can show that the debt is likely uncollectable in full by the IRS under any circumstances
• Effective Tax Administration — Debtor does not contest liability or collectibility but can demonstrate extenuating or special circumstances that the collection of the debt would "create an economic hardship or would be unfair and inequitable." This Offer in Compromise program is mainly for elderly or disabled Taxpayers.

Doubt as to collectibility

Doubt as to collectibility means that the taxpayer will never be able to fully pay the tax bill. The IRS will accept a settlement based on the following formula:
Settlement Amount = 60 months of disposable income + the equity in all the taxpayer's assets. (48 in the case of offers paid within five months of acceptance.)
If a taxpayer believes he or she qualifies, the taxpayer completes a financial statement on a form provided by the Internal Revenue Service. An individual not engaged in business may use Form 433-A, and Form 433-B if engaged in business. These financial statements will allow the taxpayer to outline everything owned, and to create a monthly income and expense table.
Disposable income is monthly income minus monthly expenses. For the example given, assume that disposable income is $100. That amount is multiplied by 48 or 60 months, resulting in a product of $4,800 or $6,000. That is the tentative minimum offer.
Now the taxpayer must add the taxpayer's equity in assets. Assume that the taxpayer owns a house that is worth $200,000 and owes only owe $180,000. In this case the taxpayer has $20,000 in equity. This must also be added to your Offer. (This needs correcting. It should be 80% of value less liabilities.)
The total offer in this simplified situation would be $20,000 + $6,000, or $26,000. What's that you say? You don't owe that much? Then you are not a candidate for the Offer in Compromise program. But if you owe, say, $100,000 then this is a great deal.
However, as is usually the case, things are not this simple. If you can make a cash offer, that is pay what you offer in 90 days or less, than you use a factor of 48, not 60 months as indicated above. Therefore, the minimum amount of your offer based on your income would be $100 time 48, or $4,800.
Let's say that you also convince the IRS that your house could not be sold on the market that quickly or that there are other problems with a potential market sale. Then, you could ask for a discount to "Quick Sale Value," or QSV, instead of Fair Market Value, FMV. Your house in now valued at a discount to 80% of FMV, or $160,000. In the above example. Because your QSV is less than what you owe on the house, and assuming you have no other assets, your actual potentially acceptable offer is $4,800 plus $0, or just $4,800.

Now let's say that you cannot pay the $4,800 within 90 days. You could offer to pay the original $6,000 listed above within 24 months: for example, at the rate of $250 per month for 24 months.

If you cannot even do that, there is yet a third way to pay. You can offer to pay your monthly net income after allowable expenses (as determined by the IRS) over the life of the remaining statute on collection (originally 10 years). Lets say, you can pay $100 per month and there is 7 years (84 months) remaining on the statute. Then you will pay $100 per month for 7 years or $8,400.
If you owe more than $8,400 in tax, penalty and interest, and your offer is accepted, then you have a good deal. If you owe less, its not a good deal; in fact, it will not be an offer that the IRS will accept. You would be better off asking for an installment agreement at $100 a month until your account is satisfied.

Lowest acceptable offer

The above formula may be applicable in cases where you owe a very large sum and you have a significant amount of disposable income. However, "doubt as to collectibility" implies the inability to pay. The IRS has been known to accept offers in compromise as low as 10%, 1%, and $1 (One Dollar), but this is, as you can imagine, very rare.
If your disposable income is $0, you do not expect to have disposable income for some years, you have special circumstances, you have zero assets and if paying this debt would cause a hardship, the IRS has been known to accept ONE DOLLAR to settle your tax liability through the Offer In Compromise. Said provision takes effect 60 days after the signing.

In a recently accepted "Offer in Compromise" filed in 2006, a family experienced the disability of the primary wage-earner. The tax liability was incurred in 1994, and had been accruing interest and penalties (leading to thousands of dollars in tax liability.) The OIC form filed by the family included the required Form 433 Collection Information Statement and expense information (less than the accepted standard expense allowances for OIC formulation), as well as the fee waiver form that is applicable in low-income cases (this waives the otherwise required $150 OIC processing fee.) Because the family's expenses exceeded their income, the disability of the wage-earner and the lack of saleable assets, the IRS accepted their original offer of $1.

Recent tax legislation requires a taxpayer to make a 20% good faith payment with the offer-in-compromise. If the offer is rejected, the IRS can keep the 20% deposit.

Partial payment

Effective July 15, 2006 the IRS made changes to the Offer in Compromise program requiring that an up-front twenty percent, non-refundable payment plus $150 be submitted along with the Offer of Compromise. An Offer submitted without the fees is subject to rejections without appeal. After the IRS receives the Offer, the IRS has two years to make a decision. If the decision is not reached by that time, then the Offer is automatically accepted.

Under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA 2005) if a taxpayer chooses to make payments over time, i.e. monthly, the taxpayer must include with the offer the first month's payment. The taxpayer is not required to submit the 20%, which applies only to the lump sum payment option. Then during the time that the offer is being considered by the IRS, the taxpayer must keep making the monthly payments to keep the offer current. If the taxpayer fails to make the payments, the offer will be returned to the taxpayer.

In the case of both the $150 application fee and either the 20% down payment or the monthly payments, a low income taxpayer may be exempt from both. The taxpayer should review the Form 656A to determine whether these fees and payments apply to them.
Effect of an Offer in Compromise on IRS levy or lien

An Offer in Compromise will have no effect upon a tax lien. The lien will remain in effect until the offer is accepted by the IRS and the full amount of the offer has been paid in full. Once the offered amount has been paid, the taxpayer should request that the IRS remove the lien. An offer in compromise will stop tax levies under section 301.7122(g)(1) of the US Federal Tax Regulations. That regulation states that the IRS will not levy upon a taxpayer's property while a valid offer in compromise is pending and, if rejected, for thirty days after the rejection. If the taxpayer appeals the rejection, the IRS cannot levy while the appeals process is ongoing.

Scams

The IRS issued a consumer alert for consumers to beware of promoters' claims to settle debts for "pennies on the dollar" through the OIC program. The warning addresses companies charging high fees to consumers who may not be eligible for the program; all other payment means would have to be exhausted, including installment payments. A recommendation is to check with the Better Business Bureau before contracting any firm to resolve your tax problems.

ATTORNEY'S ADVICE – 10 Things You Must Do If Your Wallet Is Lost or Stolen

2008-03-27T11:04:00.003-06:00

Not A Joke!! If you dislike attorneys..... You will love them for these tips. Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company.

1. Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED.'

2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to
it.

3. Put your work phone # on your checks instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.

4. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place.

I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards.

Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month. Within a week, the thieve( s ) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here's some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here's what is perhaps most important of all: (I never even thought to do this.)

7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the internet in my name.

The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their
tracks.

Now, here are the numbers you always need to contact about your wallet, if it has been stolen:

1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) Trans Union : 1-800-680 7289
4.) Social Security Administration (fraud line):
1-800-269-0271

Of course, an ounce of prevention is worth a pound of cure. Lifelock’s service stops identity thieves in their tracks. It can stop the damage caused by an identity thief before it happens by locking your information so that it cannot be used. Their service is backed by a $1,000,000 guarantee. It costs less than $10 per month. Click here for a free one month trial
.

The Guide to UK Home Ownership

2008-03-26T14:00:00.002-06:00

Now, more than ever, your home is the single largest purchase you are likely to make during your lifetime. Taking that first (or second or third) step(s) up the property ladder can be confusing and daunting.

Here is:

THE GUIDE – A quick reference guide to the steps involved in the purchase of your first or subsequent home. It covers everything from budgeting, finding the right mortgage and solicitors, and even exchanging contracts. It is full of simple, easy to follow, advice to ease your first steps onto the property ladder.

Step 1. Are You Financially Ready to Own a Home

Home ownership can be a blessing or a curse. If you have established a proper financial foundation, it can be a springboard for a successful and prosperous future. If not, it can be the first step down the path towards insolvency or bankruptcy. Here are some steps to building your foundation.

Establish an emergency savings account of at least £1000. Remember, unexpected expenses happen. You want to have some reserves set aside so that you will be able to pay those expenses and still be able to pay your other obligations. You also do not want to be forced into paying those expenses using high interest rate credit cards. In the United States, many families were forced into foreclosure and bankruptcy due to the lack of even a modest savings account. Learn from their unfortunate example.

Save 10% of each and every paycheck. As soon as you receive your pay, pay yourself first. Set aside 10% of each check in a separate savings account. Once you have four to six months of income saved you can start saving for your down payment. The reason for having this much money in savings is so that things such as a brief period of unemployment or illness will not force you into foreclosure or bankruptcy. Many families have so little in savings that they are always one or two missed paychecks away from bankruptcy.

After completing the first two steps, start saving for the deposit. Some experts recommend paying anywhere from 10% to 30% of the purchase price as a deposit. By making a higher deposit, you will borrow less money, have a lower monthly payment and will pay less interest. If you don’t make a large deposit, some lenders will charge a “High Lending Charge” which could add as much as £2000 to the cost of buying your new home.

Step 2. Calculating Your Budget

How much can you pay for your home? How much will it really cost you? Set your sights realistically and never borrow more than you can comfortably pay back.

First, work out how much you could afford to pay for your monthly mortgage payment. To help you, here is a monthly budget planner. Simply list your monthly outgoings and subtract it from your monthly income.

Monthly Budget Planner

Income

Your take home pay after taxes £

Spouse / partner’s take home pay after taxes £

Other Regular Income £

Total Monthly Income £

Expenses

Hire purchase / other loan repayments £

Credit Card / store card repayments £

Council tax payments £

Food / clothing £

Gas/ Electricity / Water/ Telephone £

House buildings / contents insurance £

Endowment / life assurance premiums £

Mortgage Payment Protection Insurance £

Travel / car (fuel / maintenance / insurance / tax) £

Savings £

Other £

Total Outgoings £

Amount Available for Mortgage Payments £

Step 3. Other Costs to Remember

When developing your budget, remember there are other costs associated with a home purchase including: Solicitor’s Fees, Land Registry, Valuation / Survey, Searches, Stamp Duty and Home Insurance. These costs could add as much as £4,825 on a £100,000 purchase.

Also, you will no doubt want to make your home, your own. You may want to make repairs, redecorate, paint or even remodel your new home. You may also want to buy new furniture or appliances. Remember to consider these costs as well.

Step 4. Choosing the Right Mortgage

There are many lenders offering many different types of mortgages. Two things to consider are:

How will you pay back your mortgage?

With a repayment mortgage you will pay back interest and a portion of the capital with each monthly payment according to an amortization schedule. After you make the last scheduled payment, you will own your house free and clear of all liens. On an interest only mortgage, you will pay back only the interest portion of the loan. You will need to make provisions to repay the capital.

What type of mortgage best suits your needs?

A fixed mortgage provides you the security of knowing what your monthly payments will be for the duration of the loan, while with a variable rate mortgage you take the risk that your payments will move up and down with changes in the interest rates. A variable rate mortgage may initially offer lower payments in the beginning, but the payments will increase if interest rates increase after the initial period.

What length of mortgage best suits your needs?

Mortgages also come in varying terms such as a 2 year, 3 year, 5 year, 10 year 25 or 30 year term. As the length of the term increases, the payments decrease. However, with a longer term loan, you will pay much more interest over the duration of the loan. How much more? Here is a simple rule called the Rule of 72. It says that to calculate how long an amount of money will double at a given rate of interest, simply divide the interest rate into the number 72.

For example, if you invested £100 at 8% interest, at the end of nine years you would have £200. It works the same way for mortgage payments. Suppose you borrow £100,000 at 8.00%

Loan, Term, & Interest Rate	Monthly Payment	Capital Paid	Interest Paid	Total Paid
£100,000, 10 year term @ 8.00%	£1213	£100,000	£145,594	£245,594
£100,000, 20 year term @ 8.00%	£836	£100,000	£100,746	£200,746

Step 5. Agreement in Principle

Your real estate agent may ask you to provide evidence showing how much money you can borrow. You can do this by getting an agreement in principle with your mortgage lender which is based upon your income, employment status, and the type of property you are looking to buy. It shows that a lender is willing to give you a mortgage and how much you could borrow from them.

Step 6. Making an Offer

Once you have found a property that you want to buy, you need to make an offer to the owners through your real estate agent. Negotiate. Your broker can help you make the right offer. Remember, sellers set their initial price with the expectation that they will have to negotiate downwards. Never offer more than you are willing or able to pay. Also, if the seller won’t negotiate an agreeable price, do not be afraid to walk away. Sooner or later, you will find the right house at the right price.

Step 7. Full Mortgage Application

Once you have found the right property and your offer has been accepted, you need to make your full mortgage application with your lender. The lender will want to see proof of your identity, income, and current address. They will also run credit checks and arrange for a valuation of the property. After they are fully satisfied, they will make a formal offer to you.

Step 8. Finding the Right Solicitor

You will need to hire a Solicitor or Licensed Conveyancer. How do you find one? Word of mouth is a common way to find a solicitor. You may also ask your real estate agent or lender for a referral. Finally, you can search the following websites: www.lawsociety.org.uk or www.conveyancer.org.uk

Step 9. Getting a Survey Done

Your lender will have a valuation performed on the property to ensure that it is worth the asking price.

You should also have a “Home Buyers Report” prepared. That is a detailed inspection of the property to make sure that it is structurally sound and highlight potential maintenance and repair problems of which you might not be aware.

Step 10. Exchanging Contracts

Since your home may be the biggest purchase that you make, it is obvious that the legal paperwork is critical. When you and your solicitor are satisfied, and your mortgage offer is in place, you are ready to exchange contracts. After you sign the contract and pay the deposit, your contract is legally binding. If you then choose to pull out, you may forfeit your deposit. Make sure that you discuss everything with your solicitor, and if you do not understand something then ask.

Remember, you also need to purchase Buildings and Contents Insurance to protect your home and belongings. You also want Mortgage Payment Protection Insurance to pay your mortgage in the event that you become unemployed or unable to work because of illness or disability. Finally, you should consider Life Cover which pays off your home in the event of your death.

Step 11. Moving In

On exchange of contracts, a completion date is agreed. On that date, your solicitor arranges for the money to be transferred and your real estate agent gives you the keys to your new home!

Moving is always stressful; however there are some things you should do to make it as pleasant as possible:

§ Organize a Removals Van

§ Get packed, also label each box with its contents by room

§ Have your post redirected

§ Change the address on your drivers’ license and passport

§ Arrange for the utility meters to be read

§ Cancel direct debits

Enjoy your new home.

Removing Civil Judgments From Your Credit Report

2008-03-24T09:44:00.000-06:00

If you have judgments against you on your credit report, you have two choices. Pay and get a satisfaction of judgment or dispute them with the credit bureaus.

A civil judgment is a court order for a person who owes money (judgment debtor) to pay it to another (judgment creditor). The court does not make the debtor pay the creditor. The creditor has to take action, on their own to collect the debt. They have several options.

First, if the debtor owns real-estate, they can have the judgment recorded in the counties where the real-estate is located. If the debtor tries to sell or refinance the property, a title search will show the judgment. The judgment is a lien on the real estate, just like a mortgage, and must be paid off before the property can be sold.

If the judgment is large enough, and the debtor has non-exempt equity in the property then the creditor can foreclose their lien and have the property sold to pay off the judgment. If the property is the debtor’s residence, there are special rules that apply. For instance, in the United States, a portion of the equity in the real estate is exempt from creditor’s claims. In Colorado, the first $60,000 in home equity is exempt. That means the debtor can keep the first $60,000 in equity from the sale. It works like this. If the creditor had a $100,000 judgment and the debtor owned a $425,000 house with $90,000 in equity and the house was sold at a foreclosure sale for $425,000, the creditor would get $30,000 from the sale.

Judgments can also be collected against bank accounts, and wages through garnishment.

Finally, a creditor can elect to have the county sheriff seize non-exempt personal property from the debtor and have it sold at a Sheriff’s Sale.

Unsatisfied civil judgments ( that means unpaid ones) also damage your credit score. The credit bureaus find out about judgments by searching real estate and court records. If you have paid off or settled a judgment, you must have the creditor file a Satisfaction of Judgment with both the court, and in any counties where the judgment was recorded. That way it shows that the judgment was paid, and it will not hinder any of your real-estate transactions.

If the judgment continues to appear on your credit report, after the satisfaction of judgment form(s) has/have been filed, then you can dispute the matter with the credit bureaus. Send a letter to each of the credit bureaus informing them that the judgment has been paid. Include a copy of the satisfaction of judgment from the court. The credit bureau will then have 30 days to verify this with the court, and then will have update their information to show that the judgment has been paid.

In some states, a judgment debtor’s social security number is not included in the court file. When this happens, and a judgment is recorded, a credit bureau may list the judgment as being against all debtors with the same or similar name. If the judgment is not yours, you need to follow the dispute procedure listed above and request that it be deleted from your report. In the short term, for a real-estate closing for example, you may be able to provide an affidavit stating under oath that the judgment is not against you.

If you have a common name, like “Johnson”, “Smith”, or “Martinez”, chances are that you will have judgments erroneously placed on your credit report. When I bought my first house, there were over 30 judgments listed on my report. Some were from states that I had never even visited, and others dated from before I was born. I had to supply my title insurance company and mortgage lender with an affidavit swearing that they were not my judgments.

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2008-03-18T10:03:00.002-06:00

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Identity Theft: What to Do if It Happens to You Part 2

2008-03-10T11:02:00.002-06:00

Here is Another Common Scenario

An identity thief uses your personal information to obtain credit. They don’t pay the bills so a debt collector demands payment and places negative information on your credit reports. As a result, your credit score is lowered, making it difficult or impossible to obtain new credit yourself.

This guide provides victims of identity theft with instructions on how to regain your reputation and financial health and who to contact for more help. You must act quickly and assertively to minimize the damage.

1. Notify credit bureaus and establish fraud alerts. Immediately report the situation to the fraud department of the three credit reporting companies -- Experian, Equifax, and TransUnion. Placing the fraud alert means that your file will be flagged and that creditors will be required to call you before extending credit.

Here is their contact information:

Equifax P.O. Box 740250, Atlanta, GA 30374- 0241.
Report fraud: Call (888) 766-0008 and write to address above.
TDD: (800) 255-0056
Web: www.equifax.com

Experian: PO Box 9532
Allen TX, 75013
Report fraud: Call (888) EXPERIAN (888-397-3742) and write to address above.
TDD: Use relay to fraud number above.
Web: www.experian.com/fraud

TransUnion: P.O. Box 6790, Fullerton, CA 92834-6790.
Report fraud: (800) 680-7289 and write to address above.
TDD: (877) 553-7803
E-mail (fraud victims only): fvad@transunion.com
Web: www.transunion.com

Under the Fair Credit Reporting Act (FCRA, §605A) you can place an initial fraud alert for only 90 days. The credit bureaus will each mail you a notice of your rights as an identity theft victim. Once you receive them, request the following:

a free copy of your credit report
an extension of the fraud alert to seven years. You must have evidence of attempts to open fraudulent credit accounts and an identity theft report to get the seven year alert.
that only the last four digits of your social security number appear on the credit report

In all communications with the credit bureaus, you will want to refer to the unique number assigned to your credit report and use certified, return receipt mail. Certified Return Receipt Mail shows proof that you mailed the letter as well as its receipt. Be sure to save all credit reports and other correspondence, along with the proof of mailing and delivery as part of your files.

Examine your credit reports carefully. Report fraudulent accounts and erroneous information in writing to both the credit bureaus and the credit issuers following the instructions provided with the credit reports. The FTC’s identity theft guide provides a sample letter to send to the credit bureaus requesting that fraudulent accounts be blocked. www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm#Resolving

After you notify the credit bureaus about the fraudulent accounts, the bureau must block that information from future reports. The bureau must also notify the credit grantor of the fraudulent account. (FCRA, §605B) Ask the credit bureaus for names and phone numbers of credit grantors with whom fraudulent accounts have been opened if this information is not included on the credit report. In addition, instruct the credit bureaus in writing to remove inquiries that have been generated due to the fraudulent access.

1a. Monitor your credit reports .

Under FACTA, The credit bureaus must provide you with free copies of your credit reports once per year. This is in addition to the free reports you can order when you place fraud alerts on your three credit reports. Once you have received your free credit reports as a part of the fraud-alert process, follow up in a few months by taking advantage of your free FACTA copy.

For more on free credit reports, see www.ftc.gov/bcp/conline/pubs/credit/freereports.htm and www.annualcreditreport.com.

In Colorado, Georgia , Maine, Maryland, Massachusetts, New Jersey, and Vermont, whether a victim or not, you can receive one free credit report each year under state law, over and above the free FACTA report you can receive yearly under federal law.

1b. Security freeze. You can request that the credit bureaus "freeze" your credit reports. That way, credit issuers may only access your reports with your permission.. This stops thieves from opening up new credit in your name. In most states, security freezes are available at no charge to identity theft victims and for a relatively small fee for non-victims.

For state-by-state information on security freezes, visit this Consumers Union web page: www.consumersunion.org/campaigns//learn_more/003484indiv.html .

2. Law enforcement. Report the crime to your local police or sheriff's department right away. You might also need to report it to police department(s) where the crime occurred if it's somewhere other than where you live. Give them as much documented evidence as possible. Make sure the police report lists the fraudulent accounts . Get a copy of the report, which is called an "identity theft report" under the FCRA. Keep the phone number of your investigator handy and give it to creditors and others who require verification of your case. Credit card companies and banks may require you to show the report in order to verify the crime.

FTC regulations define an "identity theft report" to include a report made to a local, state, or federal law enforcement agency. If your local police department refuses to file a report and your situation involves fraudulent use of the U.S. mail, you can obtain an identity theft report from the U.S. Postal Inspector. If your case involves fraudulent use of a driver's license in your name, you might be able to obtain a report from your state's Department of Motor Vehicles. The FTC has more information on identity theft reports at www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm#Identity

3. Federal Trade Commission. Report the crime to the FTC. Include your police report number. Although the FTC does not itself investigate identity theft cases, they share such information with investigators nationwide who are fighting identity theft.

Call the FTC's Identity Theft Hotline: (877) IDTHEFT (877-438-4338)
Or use its online identity theft complaint form: www.consumer.gov/idtheft
Or write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580.
The FTC's uniform fraud affidavit form is available at www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf

4. What to do with new credit accounts opened by the imposter. If your credit report shows that the imposter has opened new accounts in your name, contact those creditors immediately by telephone and in writing. Recent amendments to the FCRA (§623(6)(B)) allow you to prevent businesses from reporting fraudulent accounts to the credit bureaus. The FTC provides a sample dispute letter at www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm#Resolving (scroll down).

Creditors will likely ask you to fill out fraud affidavits. The FTC provides a uniform affidavit form that most creditors accept, www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf . No law requires affidavits to be notarized at your own expense. You may choose to substitute witness signatures for notarization if creditors require verification of your signature.

Ask the credit grantors in writing to furnish you and your investigating law enforcement agency with copies of the documentation, such as the fraudulent application and transaction records.

You must provide a copy of the FTC affidavit or another affidavit acceptable to the business, plus government-issued identification, and a copy of an "identity theft report" (police report) in order to obtain the documents created by the imposter. The business must provide copies of these records to the victim within 30 days of the victim's request at no charge. The law also allows the victim to authorize a law enforcement investigator to get access to these records.

When you have resolved the fraudulent account with the creditor, ask for a letter stating that the company has closed the disputed account and has discharged the debts. Keep this letter in your files. You may need it if the account reappears on your credit report.

You must also notify the credit bureaus about the fraudulent accounts. Instructions are provided in Section 1 above.

5. Handling problems with your existing credit or debit accounts. If your existing credit or debit accounts have been used fraudulently, report it in writing immediately to the credit card company. Request replacement cards with new account numbers. Do this by phone and in writing.

6. Debt collectors. If debt collectors try to get you to pay the unpaid bills on fraudulent accounts, request that they provide you with both their name and address as well as the identity of the original creditor. They have to do this within 30 days of your written request. This information is normally printed in their initial letter to you. If they contact you by telephone, ask for this information in writing. Inform them of the identity theft and send them a copy of the identity theft report. Under the FCRA, a debt collector must notify the creditor that the debt may be a result of identity theft.

7. Check and banking fraud. If you have had checks stolen or bank accounts set up fraudulently, ask your bank to report it to ChexSystems, a consumer reporting agency that compiles reports on checking accounts. Also, place a security alert on your file (see web address below). Your bank should be able to provide you with a fraud affidavit. Put "stop payments" on any outstanding checks that you are unsure about. Close your checking account and other affected accounts and obtain new account numbers.

Phone: (800) 428-9623. Fax: (602) 659-2197
Web: https://www.consumerdebit.com/consumerinfo/us/en/index.htm
To place a security alert on your ChexSystems report: https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/theftaffidavit/index.htm Write: ChexSystems Inc., Attn: Consumer Relations, 7805 Hudson Rd., Suite 100, Woodbury, MN 55125.

If your own checks are rejected at stores where you shop, contact the check verification company that the merchant uses. The major ones are listed here.

Fidelity National Information Services (was Certegy)	(800) 437-5120	www.fidelityinfoservices.com
SCAN	(800) 262-7771	www.consumerdebit.com
TeleCheck For annual file disclosure Fraud, id theft department	(800) 366-2425 (800) 835-3243 (800) 710-9898	.
International Check Services	(800) 526-5380	.
CrossCheck	(800) 843-0760	www.cross-check.com

Under a new federal law, you now have a right to obtain any reports that these companies compile about you. For ChexSystems and any of the check verification companies listed here that you have had to contact as a result of your identity theft situation, we recommend that you request a copy of your file once a year. Make sure your file has been corrected. If not, you will find it difficult to open new bank accounts and/or write checks. Visit the web sites listed above to learn how to order your free annual reports.

8. ATM cards. If your ATM or debit card has been stolen report it immediately. Contact your bank and fill out a fraud affidavit. Get a new card, account number, and password.

ATM and debit card transactions are subject to the Electronic Fund Transfer Act. (15 USC §1693) Even if you are a victim of identity theft, your liability for charges can increase the longer the crime goes unreported. For more on EFTA, see the Federal Reserve Board's guide, www.federalreserve.gov/pubs/consumerhdbk/electronic.htm. Also read the FTC's guide on electronic banking, www.ftc.gov/bcp/conline/pubs/credit/elbank.htm

9. Brokerage accounts. If an identity thief targets your brokerage account, refer to your account agreement for information on what to do. Immediately report the incident to the brokerage company and notify the Securities and Exchange Commission, www.sec.gov . Also notify the National Association of Securities Dealers, www.nasd.org. To protect against fraud, put a password on each of your investment accounts.

10. Fraud involving U.S. mail. This happens in many ways. Sometimes a thief fraudulently has your mail forwarded to another address. Other times, they simply steal you mail. If you do not have a locking mail box, get one. Also, don’t mail out bill payments from your house, take them to a post office or USPS mailbox. Finally to prevent mail theft, consider receiving and paying your bills online or by telephone. If you suspect mail fraud, call the U.S. Postal Service to find the nearest Postal Inspector at (800) 275-8777 or visit its web site at www.usps.com/postalinspectors. The online complaint form is available at www.usps.com/postalinspectors/fraud/MailFraudComplaint.htm. Or you can mail your complaint to: U.S. Postal Service, Criminal Investigations Service Center, Attn: Mail Fraud, 222 S. Riverside Plaza Suite 1250, Chicago, IL 60606-6100.

11. Secret Service. The U.S. Secret Service also has jurisdiction over financial fraud. But, based on U.S. Attorney guidelines, it usually does not investigate individual cases unless the dollar amount is high or you are one of many victims of a fraud ring.

12. Social Security number (SSN) misuse. The Social Security Administration (SSA) does not provide assistance to identity theft victims. But be sure to contact the SSA Inspector General to report Social Security benefit fraud, employment fraud, or welfare fraud.

Social Security Administration online complaint form: www.socialsecurity.gov/oig
SSA fraud hotline: (800) 269-0271
By mail: SSA Fraud Hotline, P.O. Box 17768, Baltimore, MD 21235

If your SSN card has been stolen or lost, order a replacement. Complete the SSA's application available at www.socialsecurity.gov/online/ss-5.html or by calling the SSA at (800) 772-1213, or by visiting your local SSA office. You will need to provide the required documentation such as birth certificate and government ID at your local SSA office to get a replacement card.

13. Passports. Whether you have a passport or not, write to the passport office to alert them to anyone ordering a passport fraudulently.

U.S. Dept. of State, Passport Services, Consular Lost/Stolen Passport Section, 1111 19th St., NW, Suite 500, Washington, DC 20036.
Website: www.travel.state.gov/passport/lost/lost_849.html

14. Phone service. Identity thieves often establish fraudulent cell phone accounts, with monthly bills going unpaid. The imposter might also have opened local and long distance telephone accounts. If the imposter has obtained phone account(s) in your name, contact the phone company for information on how to report the situation. The steps that you take to clear your name with both the phone company and credit bureaus are much the same as with credit card accounts described above in steps one and three. In California, SBC-Pacific Bell's fraud hotline is (877) 202-4558.

If your calling card has been stolen or there are fraudulent charges, cancel it and open a new account. For your own phone accounts, add a password that must be used any time your local, cell phone, and long distance accounts are changed.

15. Student loans. If an identity thief has obtained a student loan in your name, report it in writing to the school that opened the loan. Request that the account be closed. Also report it to the U.S. Dept. of Education:

Call: U.S. Dept. of Education Inspector General's Hotline: (800) MISUSED (800-647-8733)
Write: Office of Inspector General, U.S. Dept. of Education, 400 Maryland Ave., SW, Washington, DC 20202-1510.
Web: www.ed.gov/about/offices/list/oig/hotline.html?src=rt

16. Driver's license number misuse. You may need to change your driver's license number if someone is using yours as ID on bad checks or for other types of fraud. Call the Department of Motor Vehicles (DMV) to see if another license was issued in your name. Put a fraud alert on your license if your state's DMV provides a fraud alert process. Go to your local DMV to request a new number. Fill out the DMV's complaint form to begin the investigation process. Send supporting documents with the completed form to the nearest DMV investigation office.

17. Identity theft involving family members and others you know. If a deceased relative's information is being used to perpetrate identity theft, or if you personally know the identity thief, additional information about how to address these situations is available in other fact sheets. Visit the Identity Theft Resource Center web site:

When you know the perpetrator (family member, acquaintance), www.idtheftcenter.org/vg115.shtml
ID theft of the deceased, www.idtheftcenter.org/vg117.shtml
Children and ID theft, www.idtheftcenter.org/vg120b.shtml

18. Victim statements. If the imposter is apprehended by law enforcement and stands trial and/or is sentenced, write a victim impact letter to the judge handling the case. Contact the victim-witness assistance program in your area for further information on how to make your voice heard in the legal proceedings

19. False civil and criminal judgments. Sometimes victims of identity theft are wrongfully accused of crimes that were committed by the imposter. If you are wrongfully arrested or prosecuted for criminal charges, contact the police department and the court in the jurisdiction of the arrest. Also contact your state's Department of Justice and the FBI to ask how to clear your name. If a civil judgment is entered in your name for your imposter's actions, contact the court where the judgment was entered and report that you are a victim of identity theft.

20. Legal help. You may want to consult an attorney to determine legal action to take against creditors, credit bureaus, and/or debt collectors if they are not cooperative in removing fraudulent entries from your credit report or if negligence is a factor.

21. Keep good records. In dealing with the authorities and financial companies, keep a log of all conversations, including dates, names, and phone numbers. Note the time you spent and any expenses incurred in case you are able to seek restitution in a later judgment or conviction against the thief. You may be able to obtain tax deductions for theft-related expenses (26 U.S.C. §165(e) -- consult your accountant). Confirm all conversations in writing. Send correspondence using certified mail with return receipt requested. Keep copies of all letters and documents.

Visit these web sites for tips on organizing your case:

FTC's guide Take Charge, www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm#Identity
Identity Theft Resource Center, www.idtheftcenter.org/vg106.shtml

22. Don't give in. Do not pay any bill or portion of a bill that is a result of fraud. Do not cover any checks that were written or cashed fraudulently. Do not file for bankruptcy. Your credit rating should not be permanently affected. No legal action should be taken against you. If any merchant, financial company or collection agency suggests otherwise, restate your willingness to cooperate, but don't allow yourself to be coerced into paying fraudulent bills. Report such attempts to government regulators immediately.

25. Other Useful Tips

If you are in the military, place an active duty alert on your credit report
When you are away from your usual duty station, you can place an active duty alert on your three credit reports as an extra protection against identity theft. The alert remains on your credit reports for 12 months. Contact the fraud departments for the three credit bureaus.

Order your free credit report
Whether or not you are a victim of identity theft, take advantage of your free annual credit reports, now a requirement of federal law.

Phone: (877) 322-8228
Web: www.annualcreditreport.com
FTC's guide: www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

Opt out of pre-approved offers of credit for all three credit bureaus

Call (888) 5OPTOUT (888-567-8688). You may choose a five-year opt-out period or permanent opt-out status.
Or opt-out online, www.optoutprescreen.com

Remove your name from mail marketing lists (Direct Marketing Association)

Write: Mail Preference Service, P.O. Box 282, Carmel, NY 10512. Include check or money order for $1.
Web: www.dmaconsumers.org/cgi/offmailinglist. Online opt-out program costs $1 by credit card.

Remove your phone number(s) from telemarketing lists

Phone the FTC’s Do Not Call Registry: (888) 382-1222
Online registration: www.donotcall.gov

Order your earnings report from the Social Security Administration

Order your Personal Earnings and Benefits Estimate Statement The SSA automatically mails it to individuals three months before the birthday each year. www.ssa.gov/online/ssa-7004.html
For information on reporting fraud to the SSA, read tip 12 above.

26. Resources

Federal Trade Commission (FTC)

Read its guide, Take Charge: Fighting Back Against Identity Theft, www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm.
Online information and complaint form: www.consumer.gov/idtheft
FTC uniform fraud affidavit form: www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf
Identity Theft Hotline: (877) IDTHEFT (877-438-4338)
Write: FTC Identity Theft Clearinghouse, 600 Pennsylvania Ave. N.W., Washington, DC 20580

Federal Agencies and Technology Industry

For tips on online safety, visit www.onguardonline.gov

Identity Theft Resource Center (ITRC)

Guides for victims, www.idtheftcenter.org (Click on Victim Resources.)
Phone: (858) 693-7935
Web: www.idtheftcenter.org
E-mail: itrc@idtheftcenter.org
Write: P.O. Box 26833, San Diego, CA 92196

Identity Theft Survival Guide

R.M. Tracy., Former FBI Agent and author of Identity Theft Survival Guide, A Step By Step Guide To Reclaiming Your Life.
Web: www.privacytrustgroup.com
Phone: (877) 648-0119

U.S. Dept. of Justice. The DOJ prosecutes federal identity theft cases.

Web: www.usdoj.gov/criminal/fraud/idtheft.html

Apply For Loans Online With www. iloanapplication.com

2008-03-10T10:18:00.003-06:00

Ok, here is a multiple choice test. When searching for a loan, which do you prefer?

A.Going to the bank, spending hours completing their application for their one and only loan program.

B. Clicking on www.iloanapplication.com, filling out their short 3-step application and searching for over 300 loan programs covering 90% of the UK market.

When lenders compete you win!!! www.iloanapplication.com lets you compare and choose from over 300 loan programs for the personal loans that best suit your needs, not the bank’s needs. Whether you have no credit, bad credit or good credit, they can help you. They offer a wide variety of secured and unsecured loans. Whether you are looking for a mortgage, re-mortgage, home improvement loan, debt consolidation loan, or even a wedding loan, this is a site worth checking out.

Consequences of the 2008 Tax Rebate

2008-02-27T16:36:00.003-07:00

The IRS Mind blog has a great summary of the tax rebate for 2008. If you have an unpaid tax debt, the IRS will keep your rebate and apply it to your debt.

Identity Theft: What to Do if It Happens to You

2008-02-27T13:44:00.000-07:00

Imagine this. While on your way to work, you are stopped for a traffic violation. You expect that you will get a ticket, but are surprised when the officer draws his gun and orders you out of your car. You are ordered to get down on your knees and place your hands on your head. You are then patted down, handcuffed and taken to the police station. When you ask why you have been arrested, you are told that you are wanted for attempted murder in another state.

What happened? You could be the victim of an identity theft, where an imposter used your name and personal information to commit a crime. Identity Theft involves far more than just credit. Throughout the country, criminals provide false names and identities to the police in order to get away with their crimes.

It works like this. When a criminal is arrested, the officers ask for their name and personal information. Naturally, they do not have a written ID, so they give a false name and birth-date to the officer. Sometimes they even add a fake social security number. They are entered into the system under the false name, so some innocent person is charged with their crime. When they make bail, they disappear and an innocent person is forced to answer for their charges.

If the victim cannot post bail he or she could stay in jail for more than a month before being released. Jail is a horrible experience. Imagine being confined with robbers, rapists and murderers twenty four hours a day, seven days per week. You have little to do, bad food, and must constantly defend yourself from attacks by your fellow inmates.

Throughout the country, innocent persons are arrested, or otherwise forced to prove their innocence, while the true culprits go free. This may involve court hearings where a fingerprint expert compares the criminals’ fingerprints with those of the victim; or a hearing where the victim’s photograph and physical description are compared to the criminals. You may not even resemble the true culprit. I have seen cases where the innocent person was as much as one foot smaller than the criminal. In one case, the criminal had tattoos on his face and neck, while the victim had none. I don’t know about you, but I have never seen a person shrink by 12 inches or have facial tattoos removed without leaving a scar.

If you find yourself in this situation, here’s what to do.

Do not plead guilty or plea bargain your case. If you do this, you are admitting that you committed the crime. You will have a criminal record and will be punished as though you were actually guilty.
Get a lawyer immediately. If you have a lawyer, call him or her as soon as possible so they can begin working on your case. If you can’t afford one, tell the police that you want a lawyer. Do not speak to them without one.
Report the Identity Theft to the Police
Some States Have Identity Theft Passports. These are cards or certificates that you can show to the police to help demonstrate your innocence. To obtain one, you can apply to the appropriate state agency and send them a copy of a police report. In other states, you can request that the State Bureau of Investigation compare your fingerprints with those of the person arrested and issue you a letter stating that your prints are not the same as the person named in the arrest warrant. In other states you can furnish the fingerprint information to the court and have the court issue an order proclaiming your innocence.

The Subprime Mess Explained With Stick Figures

2008-02-26T11:39:00.002-07:00

Here is an explination for the subprime mortgage crisis using stick figures. Check it out.

Is one of these 5 Disorders Making You Poor

2008-01-03T16:02:00.000-07:00

Cathy Lawson has an excellent post on five "disorders" people have that make them poor. Check out her blog

8 Tips to Accomplish Your Financial Goals for 2008

2008-01-02T12:42:00.000-07:00

A recent Denver Post article discussed tips to meet your fitness goals over the next year. They also apply to meeting your financial goals as well:

1. Be Prepared

Get all of the information you need to help your financial situation. If you need a handwritten ledger, buy one. If you prefer to use a computer, get quicken, MS Money or whatever program you like to use. You can also get open source financial software at www.ostalt.com. If you need investment advice, find an adviser or financial planner. Start early by laying the groundwork for your financial plan.

2. Give It Time

Don't expect immediate results. If debt reduction is your goal, remember that you probably didn't get in debt overnight, and you are unlikely to get out overnight either. Remember, you have to live along the way. If you try to change too much at one time, you will not be able to stick to your plan. With the proper debt management plan, you can dramatically cut down your repayment times, sometimes to only a few years.

3. Set a Goal

Don't think of it as a resolution, rather break your financial goals down to a series of smaller goals. You should set what are known as SMART goals. Specific, Measurable, Attainable, Realistic and Timely. Write your goals somewhere and refer to them often.

Specific - A specific goal has a much greater chance of being accomplished than a general goal. To set a specific goal you must answer the six "W" questions:

*Who: Who is involved?
*What: What do I want to accomplish?
*Where: Identify a location.
*When: Establish a time frame.
*Which: Identify requirements and constraints.
*Why: Specific reasons, purpose or benefits of accomplishing the goal.

EXAMPLE: A general goal would be, "Get Rich" But a specific goal would say, "Open a savings account and deposit $10 per week"

Measurable - Establish concrete criteria for measuring progress toward the attainment of each goal you set. When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goal.

To determine if your goal is measurable, ask questions such as......How much? How many? How will I know when it is accomplished?

Attainable - When you identify goals that are most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, abilities, skills, and financial capacity to reach them. You begin seeing previously overlooked opportunities to bring yourself closer to the achievement of your goals.

You can attain most any goal you set when you plan your steps wisely and establish a time frame that allows you to carry out those steps. Goals that may have seemed far away and out of reach eventually move closer and become attainable, not because your goals shrink, but because you grow and expand to match them. When you list your goals you build your self-image. You see yourself as worthy of these goals, and develop the traits and personality that allow you to possess them.

Realistic - To be realistic, a goal must represent an objective toward which you are both willing and able to work. A goal can be both high and realistic; you are the only one who can decide just how high your goal should be. But be sure that every goal represents substantial progress. A high goal is frequently easier to reach than a low one because a low goal exerts low motivational force. Some of the hardest jobs you ever accomplished actually seem easy simply because they were a labor of love.

Your goal is probably realistic if you truly believe that it can be accomplished. Additional ways to know if your goal is realistic is to determine if you have accomplished anything similar in the past or ask yourself what conditions would have to exist to accomplish this goal.

Timely - A goal should be grounded within a time frame. With no time frame tied to it there's no sense of urgency. If you want to save $5000, when do you want to have it by? "Someday" won't work. But if you anchor it within a time frame, "by June 15", then you've set your unconscious mind into motion to begin working on the goal.

"Mark McCormack reported in his Success Secrets newsletter that 83% of Harvard School graduates had no goals 10 years after graduation; 14% had goals, but not in writing. The remaining three percent had written goals — and were earning 10 times as much as the group with no goals. Even the 14% whose goals were not in writing were earning three times as much as those graduates who had no goals at all."

4. Think Small

If you make your goals too big, you will get discouraged and give up. Pick one debt to pay off, when it is paid, choose another. Decide to save a certain amount of money each day, week, or month. Over time, these small changes can and do add up.

5. Eat Colorfully

Start cooking and entertaining at home. Your food will be healthier, because you have prepared it yourself and you will save money. (I couldn't think of a financial equivalent -- so this is the best I could do). Over Christmas, I saw a $900 imported Italian espresso machine for sale. The display said that by making espresso drinks at home versus going to Starbucks, it would pay for itself in less than one year.

6. Be Inspired

What will your life look like when you reach your financial goals. Will you have a new car, a large house, a vacation? Whatever it is, write that down. Better yet. Get pictures. Put them in a place where you can see them often. Use them for inspiration. Studies have shown that by simply looking at the pictures or your written description you can literally reprogram your brain to motivate yourself to achieve your goals.

7. One Day At A Time

What you do on a day by day basis is what matters. If you earn more money than you spend you will always end up ahead. I think that you should calculate how much money you earn and spend on a daily basis. Simply take all of your bills and expenses for the month and divide them by 30. Take that number and add 1/3 to it as a fudge factor for unforeseen expenses. That is your daily "burn rate". Then take your monthly income and divide it by 30. That is how much you earn daily. As long as the daily earnings exceed your burn rate, you will end up ahead. If you are spending more than you earn, you will always be behind and losing financial ground. Tim Ferriss has a spreadsheet for doing the burn rate calculation. Go to www.fourhourworkweek.com and look for his dreamline spreadsheet.

8. Make a Date

Find other people who are trying to achieve their goals. Meet with them regularly and discuss your progress. It is easier to accomplish your goals if you have someone to hold you accountable. You can find accountability-buddies through your church or temple, on the internet, or through other support groups.

New Tax Law Change Helps Borrowers

2007-12-31T10:33:00.000-07:00

President Bush has signed The Mortgage Forgiveness Debt Relief Act of 2007. It provides a temporary, three-year change to the tax code to eliminate any taxes home owners might face when banks renegotiate the terms of a home loan and forgive a portion of the outstanding mortgage debt. It applies only to primary residences and is capped at $2,000,000.

Said President Bush “Under current law, if the value of your house declines and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as money that can be taxed. And of course, this makes a difficult situation even worse. When you're worried about making your payments, higher taxes are the last thing you need to worry about. So this bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. And it's a really good piece of legislation. The provision will increase the incentive for borrowers and lenders to work together to refinance loans -- and it will allow American families to secure lower mortgage payments without facing higher taxes.”

The Act also makes mortgage insurance premiums tax deductible. According to the National Association of Home Builders president Brian Caltalde "By enabling mortgage insurance premium payments to be deducted, homeownership is made more affordable for thousands of families who now will be able to buy a home without having to resort to more costly sub-prime or predatory alternatives."

Tips to Trim Your Waistline and Your Debt

2007-12-28T12:18:00.000-07:00

Sometimes, someone expresses an idea better than you can. This is the case with this blog post. As I have spent the past year helping people get out of debt and improve their credit, I have realized the similarity between getting out of debt and losing weight. Both require consistency on a daily basis. Also, when broken down to their simplest terms, both involve lifestyle changes and simple math. If you use more calories than you consume, you will inevitably lose weight. If you earn more than you spend, you will be able to get out of debt.

There are many weight loss and financial programs out there. What works for one person may not work for others. Some people will prefer trying to earn more money, others would rather spend less, while another group may want to try a hybrid approach. Whatever approach you choose, as long as you are consistent and the math works in your favor, you cannot fail.

Here's to a happy, healthy and prosperous 2008.

URL: Tips to Trim Your Waistline and Your Debt

Let Sleeping Dogs Lie – Don’t Pay Your Ancient Debts

2007-12-18T11:45:00.000-07:00

If a creditor waits for too long to collect and old debt, you may not have to pay it. All states have statutes of limitations – laws which require that a creditor sue to collect a debt on or before a certain date. If they do not file a lawsuit in time, then they are forever barred from suing to collect the debt. A lawsuit is filed when the complaint been filed with the proper court, and a filing fee has been paid. A complaint is the document where the creditor states to the court that you owe them money and provides the reasons for that claim.

Each state has statutes of limitations for certain types of debt. There are four types of debt. Oral Contracts are those where you verbally agreed to pay the debt. Written Contracts are those where you agreed in a signed writing to pay your debt. A Promissory Note is a written document you sign where you agree to pay the principal and interest on a debt according to a schedule. Finally an Open Account a rotating line of credit with a changing balance. Some states have the same statute of limitations for all types of debt, others have different ones.

When does the statute of limitations start? It starts when you miss your first payment. You can check the date of last activity on an account by obtaining a copy of your credit report.

Some collection companies specialize in buying debts whose statute of limitations has expired and trying to collect them. They try to get you to agree to make payments on the debt. By agreeing to make the payments, and making them, they create a new debt with a new statute of limitations. In a sense, they revive the old debt.

If you notice old debts on your credit report, or if a collector contacts you, before deciding to pay them or settle with the collector, talk with a lawyer in your state to see if you really owe the money. If you get sued on an old debt, make sure to claim the statute of limitations defense in your answer. If you don’t file an answer or don’t claim the statutes of limitations as a defense, you will lose your case.

Here is a table showing the Statute of Limitations in all 50 States. Most states have laws that stop the statute of limitations from running out if you are outside of the state or country. Also, some contracts have a provision that says that any lawsuit will be governed by the laws of another state. If you are sued, you should check with a lawyer to see if the statute of limitations defense applies to your debt.

State	Oral Agreement	Written Agreement	Promissory Note	Open Account
Alabama	6	6	6	3
Alaska	6	6	6	6
Arizona	3	6	5	3
Arkansas	3	5	6	3
California	2	4	4	4
Colorado	6	6	6	6
Connecticut	3	6	6	6
Delaware	3	6	6	3
D.C.	3	3	3	3
Florida	4	5	5	4
Georgia	4	6	6	4
Guam	4	4	4	4
Hawaii	6	6	6	6
Idaho	4	5	10	4
Illinois	5	10	6	5
Indiana	6	10	10	6
Iowa	5	10	5	5
Kansas	3	5	5	3
Kentucky	5	15	15	5
Louisiana	10	10	10	3
Maine	6	6	6	6
Maryland	3	3	6	3
Massachusetts	6	6	6	6
Michigan	6	6	6	6
Minnesota	6	6	6	6
Mississippi	3	3	3	3
Missouri	5	10	10	5
Montana	5	8	8	5
Nebraska	4	5	6	4
Nevada	4	6	3	4
New Hampshire	3	3	6	3
New Jersey	6	6	6	6
New Mexico	4	6	6	4
New York	6	6	6	6
North Carolina	3	3	5	3
North Dakota	6	6	6	6
Ohio	6	15	15
Oklahoma	3	5	5	3
Oregon	6	6	6	6
Pennsylvania	4	6	4	6
Puerto Rico	15	15		3
Rhode Island	15	15	10	10
South Carolina	10	10	3	3
South Dakota	6	6	6	6
Tennessee	6	6	6	6
Texas	4	4	4	4
Utah	4	6	6	4
Vermont	6	6	5	6
Virginia	3	5	6	3
Washington	3	6	6	3
West Virginia	5	10	6	5
Wisconsin	6	6	10	6
Wyoming	8	10	10	8
Virgin Islands	6	6	6	6

Garnishment: Facts You Need To Know

2007-12-17T09:54:00.000-07:00

Garnishment: Facts You Need To Know

Garnishment permits a creditor to take your wages or bank account balances collect your debt. It works like this. The creditor gets a judgment against you from a court. A judgment is an order from the court telling you to pay the creditor. The creditor then gets a Writ of Garnishment from the court. That is an order from the court requiring your bank, or your employer, to pay your account balance or wages to the court. The court then turns the money over to your creditor. Before the court pays the money to the creditor, they give you a chance to show why the money shouldn’t be paid.

Before a creditor can garnish your account, they must have a judgment against you. There are two exceptions to this rule. First, tax authorities such as the Internal Revenue Service can garnish your accounts without first obtaining a judgment. Also, in some states, your wages and accounts may be garnished to collect unpaid child support.

Even if your paycheck or bank account is garnished, you may be able to get back or keep some of the money. Each state has different rules regarding exempt property --property that your creditors cannot touch. The most famous example of exempt property is O.J. Simpson’s $25,000 per month NFL pension. Even though he has judgments against him in excess of thirty million dollars, his victims’ parents cannot take any of Mr. Simpson’s pension payments.

In some states, all or, or a part of your wages are exempt. Most retirement plans are also exempt. Also, social security, SSI and disability payments are exempt. If you can prove to the court that the money in your account comes from these sources, you may be able to have it returned to you.

If you learn that a creditor is trying to garnish your paycheck or bank account, you should contact a lawyer immediately. If you did not have notice of the lawsuit, or if you are not the person named in the lawsuit then the judgment can be set aside. Also, if you file for bankruptcy, the garnishment will be stopped.

Debt Collectors Revealed: 5 Lies We Tell Consumers (And How to Stop Them)

2007-12-16T11:15:00.000-07:00

Here is my list of the top five lies debt collectors use to get people to pay:

If You Don’t Pay We Will Garnish Your Account.

Only the IRS, State Taxing Authorities, and Child Support Enforcement have the power to garnish your account without first suing you, winning, having the court issue a writ of garnishment and then garnish your account. Unless you have been sued and had a judgment taken against you, they can’t garnish your account.

Do you really think that they will garnish your wages because of a 5 year old unpaid library fine? How about an old bill from Time Life Books? Of course not, here is why:

First, the debt collection company has probably bought this debt for pennies on the dollar, or even pennies per hundred dollars. Anything they get will be profit. Second, the debt collector is probably a minimum wage employee at a call center located out of state, or even outside the United States. They make many calls per hour and are after the easy payments. Lawsuits cost money. Even if they win, they won’t normally get their attorney fees as part of the judgment.

If You Don’t Pay We Will Have to Inform The Credit Bureaus.

Guess what. If the bill collector is calling, the credit bureaus have already been notified. Bad accounts hurt your credit score for approximately two years from the time that they are first reported. In other words, if the debt was reported more than two years ago, it doesn’t hurt your score anyway. In fact, by paying it, you may do more harm to your score than by ignoring it. Also if the collector makes this threat and doesn’t follow through they have violated federal and state law by threatening action that they do not intend to take.

We’re Going to Take Your House Unless You Pay Immediately.

Again, it is illegal for a collector to threaten action which they do not intend to take. Unless the creditor has already obtained a judgment, or is your mortgage company, your house is safe.

If You Don’t Pay Today, A Warrant Will Be Issued For Your Arrest.

In the United States, being in debt is not a crime. You cannot be arrested or imprisoned merely because of debt.

Pay Up Or We’ll Hurt You.

This is the old gangster, loan shark, or Tony Soprano trick – threaten violence in order to get paid. It is also known as robbery, attempted robbery, menacing and/or extortion – all of which are serious felonies. The Fair Debt Collection Practices Act specifically prohibits threatening violence against any person or their property in order to collect a debt.

If a debt collector tries this or any of the other lies above, here is how to handle the situation. Get the collector’s name, company name and telephone number. Write down the date and time of the call, as well as any threats made by the collector. Even better, get a tape recording of the threats being made. File a report with your state’s collection bureau licensing board, state attorney general, or local police department. Under federal law, the collector may be liable for damages of up to $1000 plus court costs and attorney fees. You may be able to have the entire debt cancelled under your state law.

Don't Use a Debit Card When Shopping Online

2007-12-14T09:54:00.000-07:00

The movie “Gone in Sixty Seconds” showed how a professional car thief could break into, start and drive off in a stolen car in sixty seconds. If you shop online using a debit card, a stranger could steal your identity and empty your checking account in even less time.

Why? The law governing debit card transactions is much, much weaker than the law governing credit card transactions:

Credit card liability. If you report the theft before the card is used, you have zero liability. If you report it after the card is used, it is capped at $50 per card
Debit card liability. If you report the theft within two business days, your liability is limited to $50, and some issuers may waive that amount. However, after two business days, your liability jumps to $500. And if you don't report the loss or theft within 60 days of receiving your statement, your liability is unlimited.

Now, both Visa and MasterCard, as a matter of company policy offer some protection. Visa offers zero liability, unless the cardholder was negligent. Mastercard offers zero-liability in the event that the client has not reported two more “unauthorized events” within the past year.

If you choose to use a debit card to shop online, here are some ways to protect yourself.

Get the seller's phone number in case you have questions or problems.
Type the seller's name in your search engine to see if there are unfavorable reviews.
Read the website's privacy policy to see how your personal information will be used.
Understand the return policies.
When entering payment information, make sure the http:// changes to https:// in the site's URL address line.
Don't shop online unless your computer has antivirus and anti-spyware software, and a firewall.

Borrowers Get Year-End Gift from Fed

2007-12-11T14:07:00.000-07:00

Here is some news from my friend Rod Cameron of Cameron Financial Services concerning the Federal Reserve Board's decision to lower interest rates.

The Federal Reserve lowered interest rates today for the third straight meeting of the FOMC. What does this mean? Well, if you're looking to capture the best home loan rates, you need to act now. For those with an application already in process, you should probably lock your rate as soon as possible. And, for anyone who has yet to begin a loan application, what are you waiting for?

Rate Hikes on the Horizon
Despite this latest cut from the Fed, rates for many borrowers could actually increase soon. Why? Because Fannie Mae and Freddie Mac have recently announced 2008 Loan Level Price Adjustments (LLPAs) that are already starting to show up on lenders' rate sheets. LLPAs are automatic “penalties” based on credit scores, which tack on costs in the form of points or higher rates for most anyone with a FICO less than 720. Call me, and I will give you all the details.

Back to The Fed
But, let's get back to the good news. The Fed cut the Federal Funds Rate, an overnight lending rate that banks charge each other and which influences the amount of interest consumers pay for various types of debt, such as credit cards, home equity lines of credit, and auto loans.

Since September 18th, the Federal Funds Rate has gone down 100 basis points. If you have a loan that is tied to the Prime Rate, this means your rates have been lowered a full point. But, for those seeking to obtain new financing, you must act now to take advantage.

No Time to Wait
Following each of the last two interest rate cuts by the Fed, home loan rates jumped higher a couple of weeks later. Remember, lower short-term rates are inflationary by nature, and cause consumers to spend more money. Because of this, long-term rates tend to increase as bond holders hate inflation and command higher rates as a result in order to protect their investments.

Because of these pressures and the upcoming Loan Level Price Adjustments, interest rates are going to rise. You need to call me now in order to secure the best deal you may see for some time. You'll be glad that you did.

A Brief Summary Of The New Mortgage Relief Plan

2007-12-10T15:33:00.000-07:00

A Brief Summary Of The New Mortgage Relief Plan
© 2007 by Peter M. Johnson, J.D.

On December 6, 2007, the American Securitization Forum issued “Streamlined Foreclosure and Loss Avoidance Framework for Securitized Sub-prime Adjustable Rate Mortgage Loans.” It has been endorsed by The Treasury Department, Department of Housing and Urban Development, and federal bank regulators. It sets forth a voluntary system for lenders to streamline the evaluation of their securitized sub-prime loan portfolios and fast track borrowers into the correct solution for their individual needs.

“Securitized loans” are loans which have been pooled with other loans and sold to investors as securities. Many types of loans including prime mortgages, automobile, multi-family home and even student loans have been securitized. Securitization allows the lenders to make more loans since, rather than waiting for a loan to be repaid over a long period of time they sell it to investors. The lender has more capital to loan and can make more loans. Investors profited because pooling reduced the risk of individual loans going into default, and that risk was factored into the price of the securitized loans.

Securitization played a particularly strong role in the expansion of sub-prime lending. Certain lenders specialized in originating sub prime mortgage loans, and packaging them for the securities market rather than holding them in their own portfolios. As the market moved to this “originate to distribute” model, these specialized lenders took over much of the sub-prime mortgage market.

“Sub-Prime Loans” are loans made to borrowers with a high credit risk. These borrowers, because of their poor credit histories are statistically more likely to fail to pay the loans on time and in full. These loans had higher interest rates and fees as well as significant prepayment penalties in order to compensate the lender for their higher risk.

“Adjustable Rate Mortgages” are mortgage loans in which the interest rate and borrower’s payment may increase over time. Typically these loans had a set interest rate for an introductory period and once that period expired they could be increased. A “2/28” loan meant that the loan had a two year fixed interest rate period and a 28 year adjustable rate period. Another loan “3/27” had a three year fixed period.

Sub-prime mortgages underwritten during the past two years have a higher than normal default rate. More and more of these loans have ended up in foreclosure, because borrowers could not make either the initial payments or the higher payments after the fixed time period expired. Also, in many parts of the country, real-estate prices have quit increasing or have started decreasing. These sub-prime borrowers now find themselves “upside down”, owing more than a property is worth, while simultaneously being unable to afford the higher payments. Foreclosures also drive down the prices of nearby homes thus causing or encouraging other neighbors to walk away from their mortgages. These foreclosures primarily affect lower and middle class neighborhoods. Finally, these defaults have harmed the market for mortgage-backed securities, as well as the financial institutions and investors who have purchas

This plan divides borrowers into four groups and provides a way for lenders to track borrowers into the solution which best serves their needs. Borrowers are segmented into four groups: those eligible for refinancing; those eligible for a loan modification; those who need intensive analysis of their debts and income; and those who can afford the higher reset rate, and therefore need no assistance. The plan encourages lenders to notify borrowers of their options starting more than 120 days before the loan is scheduled to reset.

Which Loans Qualify?

It applies to sub-prime residential adjustable-rate mortgage loans that have an initial fixed-rate period of 36 months including “2/28s” and “3/27s” or less and:

1. Originated between Jan. 1, 2005, and July 31, 2007.
2. Are included in securitized pools of mortgages.
3. Have an initial interest rate reset between Jan. 1, 2008, and July 31, 2010.

Which Borrowers Qualify?

The borrowers must:

1. Live in the residence covered by the mortgage;
2. Be “current” (not more than 30 days late) in all mortgage payments
3. Have less than 2 60 day delinquencies during the preceeding 12 months
4. Have less than 3% equity in the home
5. be unlikely to qualify to refinance.

Categories of Borrowers

The plan divides borrowers into categories and specifies the types of relief available. This only applies to qualified loans made to qualified borrowers. If the loan and/or the borrower do not qualify, then the plan does not provide for any relief.

CATEGORY 1: loan payments are current, and the borrower probably could refinance into other kinds of mortgages, including FHA, FHA secure or readily available mortgage industry products.

The loan servicer will determine whether loans may be eligible for refinancing into readily available mortgage industry products based on ascertainable data not requiring direct communication with the borrower, such as LTV, loan amount, FICO and payment history. Loan servicers will generally not determine current income or DTI to determine initial eligibility for refinancing. If the borrower also has a second lien on the property, this framework contemplates that the borrower is able to refinance the first lien only, on a no cash out basis. In order for the loan to fall into this segment, the second lien does not have to be refinanced; however, any second lien holder will need to agree to subordinate their interest to the refinanced first lien.

CATEGORY 2: loan payments are current, but the borrower is unlikely to be able to refinance into any readily available mortgage product.

The borrower must meet one of several tests to fit into this category:

LTV Test All current loans with an LTV (based on the first lien only) greater than
97% are deemed not to be eligible for refinance into any available product, and thus
are within Segment 2. (97% is the maximum LTV allowed under FHA Secure.)

Not FHA Secure eligible: All current loans that otherwise do not satisfy FHA Secure
requirements, including delinquency history, DTI at origination and loan amount
standards for this program, are within Segment 2 unless the servicer can determine
whether they may meet eligibility criteria for another product, by reviewing eligibility
criteria without performing an underwriting analysis.

CATEGORY 3 includes loans where the borrower is not current as defined above,
demonstrating difficulty meeting the introductory rate.

4. Types of Available Relief

Category 1 – Re-finance:

Category 1 borrowers should re-finance their loans, if they are unable or unwilling to meet their reset payment. However, a servicer may evaluate each borrower in this category on a case by case basis or apply any framework consistent with the applicable servicing standard in the transaction documents for a loan modification or other loss mitigation outcome. The servicer will facilitate a refinance in a manner that avoids the imposition of pre-payment penalties wherever feasible. This may be accomplished by timing the re-finance to occur after the upcoming reset date. Servicers should take all reasonable steps permitted under the pooling and servicing agreement and other governing documents to encourage or facilitate refinancing for borrowers in Category 1, or to borrowers in Category 2 who become eligible for a refinance, including, where permitted, providing borrowers with information about FHA, FHA Secure and other readily available mortgage industry products, even if that servicer is not able to provide those products through any affiliated originator.

Category 2 – Loan Modification

The servicer will first determine borrower occupancy of the property, the current FICO score, and the FICO score at the time the loan was originated. The servicer will use several tests to determine if the loan should be modified. Most homeowners who qualify under this category can get an interest rate freeze for five years, following the initial interest rate reset.

“The FICO test”: If the FICO score is less than 660 and is less than a score 10% higher at loan origination then the borrower has passed the FICO test. If the borrower passes the FICO test the servicer will generally not determine the borrower’s current income.

If the FICO Score is greater than 660 and is at least 10% higher than the score at loan origination, then the borrower is considered to have not met the FICO test. The servicer will use an alternate analysis to see if the borrower is eligible for a loan modification.

Category 2 borrowers are eligible for a fast track modification if the borrower currently uses the home as a primary residence, the borrower meets the FICO test and the servicer determines that at the upcoming reset, the payment will increase by more than 10%. These borrowers may be offered a loan modification under which the interest rate will be kept at the existing rate following the upcoming reset.

The plan also creates several presumptions on which the servicer may rely:

1. The borrower is able to pay under the loan modification based on his or her
current payment history prior to the reset date.

2. The borrower is willing to pay under the loan modification, as evidenced by a) an agreement to the modification after being contacted or b) in the event that the affirmative agreement of the borrower cannot be obtained, the borrower’s payment of two payments under the loan as modified after receiving notice of the modified terms.

3. The borrower is unable to pay (and default is reasonably foreseeable) after the
upcoming reset under the original loan terms, based on the size of the payment
increase that would otherwise apply.

4. The modification maximizes the net present value of recoveries to the
securitization trust and is in the best interests of investors in the aggregate,
because refinancing opportunities are likely not available and the borrower is
able and willing to pay under the modified terms.

For those borrowers who do not meet the FICO test, the servicer will use an alternate
analysis to determine if the borrower is eligible for a loan modification, as well as the
terms of the modification (which may vary). This may include a) conducting an
individual review of current income and debt obligations, debt-to-income analysis,
and considering a tailored modification for a borrower, or b) applying any other
framework consistent with the applicable servicing standard in the transaction
documents to determine if a borrower is eligible for a loan modification.

For borrowers that are eligible for a fast track modification, the fast track option is
non-exclusive and does not preclude a servicer from using an alternate analysis to
determine if a borrower is eligible for a loan modification, as well as the terms of
the modification.

Category 3 – Loss Mitigation:

For loans in this category, the servicer will determine the appropriate loss mitigation
approach in a manner consistent with the applicable servicing standard in the
transaction documents, but without employing the fast tracking procedures described
under Category 2. The approach chosen should maximize the net present value of the
recoveries to the securitization trust. The available approaches may include loan
modification (including rate reduction and/or principal forgiveness), forbearance,
short sale, short payoff, or foreclosure. These borrowers will require a more intensive analysis, including where appropriate current debt and income analysis, to determine the appropriate loss mitigation approach.

While this new plan is far from perfect, it will help some homeowners remain in their homes and avoid foreclosure. It also provides another way for mortgage brokers to advise and assist their clients.

Peter M. Johnson is an attorney and founder of A-Z Financial Solutions, LLC, a firm specializing in debt negotiation and credit restoration. He may be reached at pete.johnson@azfs.biz or by telephone at 303-488-3323.

BUSH ADMINISTRATION TO HELP NEARLY ONE-QUARTER OF A MILLION HOMEOWNERS REFINANCE, KEEP THEIR HOMES

2007-09-05T11:47:00.000-06:00

BUSH ADMINISTRATION TO HELP NEARLY ONE-QUARTER OF A MILLION HOMEOWNERS REFINANCE, KEEP THEIR HOMESFHA to implement new “FHASecure” refinancing product

President George W. Bush today (08/31/07) announced that HUD's Federal Housing Administration (FHA) will help an estimated 240,000 families avoid foreclosure by enhancing its refinancing program effective immediately. Under the new FHASecure plan, FHA will allow families with strong credit histories who had been making timely mortgage payments before their loans reset-but are now in default-to qualify for refinancing…
To read the entire press release, please visit: http://www.hud.gov/news/release.cfm?content=pr07-123.cfm

LENDERS PLEASE NOTE: FHA WILL PUBLISH A NEW MORTGAGEE LETTER WITH GUIDANCE ON THE NEW FHASecure PROGRAM ON OR ABOUT TUESDAY SEPTEMBER 4th, 2007 at: http://www.hud.gov/offices/hsg/mltrmenu.cfm

The Federal Housing Administration (FHA) is pleased to announce a new initiative that will enable homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently “reset.”
Under FHASecure, borrowers that are delinquent on their mortgages as a result of interest rate resets will now be able to refinance using an FHA-insured mortgage. In many cases homeowners may be permitted to include mortgage payment arrearages into the new loan amount, subject to existing geographical mortgage limits and the loan-to-value limit shown below. Before today, only borrowers who were current on their existing loan were allowed to re-finance into an FHA-insured mortgage.
Highlights of the FHASecure Initiative:
1. The mortgage being refinanced must be a non-FHA ARM that has reset.
2. The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.
3. If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.
4. Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2), the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing.
5. Lenders must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor’s inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

What May be Included in the FHASecure Mortgage Amount:

FHA will permit the inclusion of the existing first lien, any purchase money second mortgage, closing costs, prepaid expenses, discount points, prepayment penalties, and late charges. FHA will also permit arrearages (principal, interest, taxes and insurance) to be added into the new loan amount.

Subordinate Financing under the FHASecure Initiative:

If the new maximum FHA loan is not enough to pay off the existing first lien, closing costs and arrearages, the lender may execute a second lien at closing to pay the difference. The combined amount of the FHASecure first mortgage and any subordinate lien may exceed the applicable FHA loan-to-value ratio and geographical maximum mortgage amount. If payments on the second are required, they must be included in qualifying the borrower. If payments are deferred, they must be so for no less than 36 months to not be considered in the qualifying ratios.

Educate Borrowers Regarding FHASecure:
The FHASecure initiative will take effect almost immediately through administrative action. Counselors should understand this new opportunity and knowledgeably present it as a viable alternative for delinquent borrowers struggling to pay higher interest rates. HUD will soon publish a Mortgagee Letter providing additional and more detailed information regarding the new initiative.

AND

Implementation of Pay.gov for Upfront MIP Payments

Beginning September 4, 2007, FHA-approved lending institutions may begin submitting upfront mortgage insurance premium (MIP) payments using https://www.pay.gov/ Payments may be submitted directly to HUD online via the FHA Connection or through CPU to CPU batch file transmissions. Between September 4 and September 28, 2007, lenders may submit upfront MIP payments using either the new Pay.gov process or the current Mellon Bank or PNC Bank process. September 28, 2007 is the last business day that HUD will accept payments made through Mellon Bank or PNC Bank. See Mortgagee Letter 2007-10.

For more information on submitting payments using Pay.gov, see Pay.gov Implementation Information, located on HUD’s Homes & Communities website at: http://www.hud.gov/offices/hsg/comp/premiums/sfpaygov.cfm

Don't Fall For The Missed Jury Duty Scam

2007-09-04T11:06:00.000-06:00

Protect your identity. Don’t fall prey to the jury duty identity theft scam. In this scam, the victim receives a telephone call informing them that they have incurred various civil and/or criminal penalties because they failed to report for jury duty. Since this is the first time the victim has heard about the problem, the scammer offers to re-check their records. They ask the victim for their name, address, phone number, and social security number. This is all of the information needed to commit identity theft. After checking the records, the victim is informed that the court’s records were in error and that the problem will be fixed. In another variation of this scam, they are informed that there is a substantial fine but that they can resolve this matter by pleading guilty and paying a lesser fine. The scammer then offers to let them pay their fine by credit card over the telephone. No court, anywhere in the United States, telephones people who miss jury duty. Even if the caller-id indicates that the call is from a court, it can be spoofed.

10 Steps to Wreck Your Credit

2007-08-01T10:22:00.000-06:00

Here are my top 10 ways to wreck your credit

10.Become a Co-Signer – When you cosign for another person, you become completely responsible in the event that the other person defaults. If you cosign for a car loan, and the other person does not make the payments, the car can be repossessed and sold and the lender can look to you to make up any deficiency. Co-signing increases your debt limit and can make it more difficult for you to obtain other credit. Finally, as long as any loan balance remains outstanding, you won’t be able to get off the hook for the loan.

9. Ignore your limits – Get ready to incur penalties, interest and over the limit fees. If you use more than 1/3 of your available credit on an account, your credit score will drop. If you use 80% or more of your limit, even if you pay your balance in full each month, it will show as being maxed out on your report. Under most credit card agreements, they may reduce your limit, cancel your account, or raise your interest rates at any time when they become concerned about your ability to pay it back.

8. Pay It Late – When you make a late payment, you trigger many bad possibilities. First, you will drop your credit score by as much as 50 points. Second, that credit card, as well as all of your other cards may increase your interest rate to their “Default Rate”, your interest rate on all of your cards could increase from a low rate to in excess of 40% each. Under the universal default provision, contained in your credit card agreement, a default on any of your accounts, triggers this provision. As your monthly payments skyrocket, your ability to obtain credit diminishes.

7. Take Advantage of Retail Card Offers – Discounts for new credit applications or no interest, no payment financing is a great deal. These offers can drop your credit score by tens or even hundreds of points overnight. When you apply for credit, your score drops. When you use the retail credit, you are usually only approved for slightly more than the amount of your initial purchase. This way, you can get credit and max it out at the same time. This is a double whammy, you lose points for asking for credit as well as using it.

6. Get that Free Souvenir. When you are at a sporting or other event, apply for the cards that give you sports memorabilia such as duffel bags, towels, or hats. Even better, get the card with your favorite stock car driver’s picture on it. That $1.00 souvenir is easily worth a 50 or more point drop in your credit score.

5. Use Finance Companies/ Payday loans. Rather than using your card, go to a finance company or a payday loan. Not only will you get to pay much higher interest rates, up to 99.5% per year, you can make yourself look even worse to other lenders. The credit bureaus consider the amount of credit as well as its source. Simply put, people who use finance companies and payday loans are far more likely not to pay their bills than those who use banks and more legitimate credit.

4. Be Careless With Your Identity. If you aren’t doing a good enough job wrecking your credit, there are plenty of criminals who are delighted to help you do it. Don’t shred important documents, make sure your checks have your drivers’ license number and social security number printed on them, ignore your credit report, and mail all of your payments from home. Also, respond promptly to e-mails requesting your personal information from any bank or financial institution, especially ones written in poor English or those from institutions where you have never done business.

3. Out with the old, in with the new. Cancel your older cards, and those for which you have a good payment history. The credit bureaus look at the age of an account and the length of good payment history when assigning a score. Simply put, longstanding accounts with good history give you more points than new accounts with bad history.

2. Apply for lots of credit at once. When planning a major purchase, go all the way. If you are looking to get a house, you might as well apply for a new car loan, student loan and some credit cards as well. Each time you apply for credit, the lender requests a credit report. Multiple inquiries made within 30 days from the same industry count as one inquiry. Inquiries from other industries also count. Each one can lower your score by as much as 30 points, so make sure to ask for as much credit from as many different industries as possible at once.

1. Quit paying your bills. Wait until your accounts go into collection before dealing with them. Better yet, make your creditors sue you before paying. It can take creditors several months or years to sue you and they may be willing to settle for less money. However, public records, such as judgments and bankruptcies can harm your credit for up to 10 years.

ID Theft Enterepreneur's identity stolen

2007-07-26T09:44:00.000-06:00

The founder of LifeLock, Todd Davis, was so confident that his company could stop identity theft that he published his social security number and told the Fort Worth Star Telegram that it couldn't be used, has become the victim of identity theft. Apparently someone used the social security number to obtain an internet loan and had the money deposited in a Fort Worth bank. This is further proof that everyone should be cautious when providing identification information.

Tips to Improve Your Credit Score

2007-07-23T16:18:00.000-06:00

Broderick Perkins has published several valuable tips for improving your credit score. Read More

Web Networkers At Risk From Identity Theft

2007-07-23T16:10:00.000-06:00

From The BBC

People who use internet networking sites are being warned that they could be at risk of identity theft.

Credit information group Equifax said members of sites such as MySpace, Bebo and Facebook may be putting too many details about themselves online.
It said fraudsters could use these details to steal someone's identity and apply for credit and benefits.

About 80,000 people in the UK were victims of identity theft last year, at a cost to the economy of £1.5bn. Read More

The Link Between Car Theft and Identity Theft

2007-07-23T16:02:00.000-06:00

In this article, Attorney Randall S. Udelman describes the link between identity theft and auto theft and provides tips to prevent car thieves from stealing your identity. Read More

Ways to Save Money

2007-07-23T15:41:00.001-06:00

Here are some creative ways to save money from Dawn C at Frugal For Life

Let's start a wave of information- What are 25 different ways you save money?Whether it be daily or once in your lifetime, either jot it down in the comments or post to your own blog and I will link to it here. (just let me know in some form) It is always good to take a step back and see what good you ARE doing and where you can do better.Here are my ways I have and continue to save money :
1. Change light bulbs to CFL bulbs to save money
2. Use Heat and Air Conditioning sparingly
3. Use the light of Day instead of lights in the house
4. Pay bills online or in person, instead of using stamps
5. Keep razorblades dry and clean so that they last longer
6. Write checks for over the amount instead of using an ATM with fees
7. Use plastic containers to store left over food for eating later
8. Turn off all lights when not in a room
9. Leave the car at home at least one day out of the week
10. Borrow books from the library instead of buying them
11. Use coupons and check grocery circulars to get the best deals
12. Cook meals at home, cutting back on eating out
13. Take lunch to work
14. Watch movies at home instead of in the theater
15. Wash clothes every 7-10 days
16. Wash clothes in cold water to save on heat
17. Every 6-12 months verify I am getting the best deal on utilities and insurance
18. Cut out all subscriptions to magazines unless I can get them free
19. Buy foods in bulk or when items are clearanced and save in freezer
20. Pick up money from the ground and save in a coin jar
21. Round up in check book and place excess in savings at end of the month
22. Making use of Employer’s 401k matching limit
23. Put raises or bonuses in savings or apply towards debt
24. Do research online for best value for money on medium to large priced items
25. Jump at the chance to take home food from work potlucks when asked

Since everyone saves money a little differently and we all can learn a thing or two from each other, check out other people's thoughts on ways THEY SAVE:
1-MBHunter spills the beans on his Twenty-Five ways to save money
2-Blue takes the path to savings in 25 ways and hasn't looked back
3-In Maggie's Madcap life, she still has 25 ways she saves money
4-Chuck pulls together his top 25 ways to save money
5-Deb's living the life with 25 ways she saves money
6-Elizabeth finds the true luxuries in life that are bonus' to her 25 ways she saves
7-Hammy from 'down under, lets loose his warrior spirit and finds 25 ways to save
8-Getting to Enough blogger shares their ways of saving and ways to improve
9-David tightens his belt and goes over the 25 ways he saves, until he finds a job
10-Ariane lists 25 neat ways she saves money and simplifies her day11- Tiredbuthappy takes a look at her 25 ways to save money
12-Meredith gathers her valuable ways to save money
13-Jane suprises herself and finds out she has 25 ways she saves money
14-Thrifty Mommy takes on the challenge to find her own 25 ways she saves money
15-Jennifer gets ahead by trying some of her 25 ways to save money
16-Jenn presses forward and jots down her frugal ways to save money
17- Angela bytes on the idea to jot down her 25 ways to save money
18- 25 Slightly Unconventional Ways to SAVE your Pennies comes from the east in a perspective from New Hampshire
19- The Queen of Carrots stretches her vegetable to comes up with 25 ways she saves money.
20-Susan has some Fruitful savings by listing 25 ways she saves
21- Lynette chronicles her 25 ways to save money....and catagorizes them as well.
22- Eve takes time from decluttering to jot down her list of 25 ways to save.
23- Busy Blogger got to work on 25 ways to save money as well
24- Sharon shows us her royal 25 habits for saving money
*25* - Matthew gets green with his 25 Realistic Ways to Spend Less and Save Money in College
26- Prince of Thrift posts his Frugal 25 Ways to Save Money
27- Kim goes through her Frugal Life to find her 25 Ways she Saves Money
28 - Bibliozona indexes her 26 ways to save money
29 - The NYC Insider gives us the bite on the 25 Money-Saving Travel Tips
30 - The Family CEO manages a gathering of 25 Things I Do to Save Money
31 - Michael seeks a better life by listing his 25 Ways to Save Money and live Better
32 - Golbguru takes money, matter and more musings to crank out the 25 Things We Do To Save Money
33 - Mrs Hoppes is saving resources and still finding 25 Ways to Save Money
34 - Tiffany not only saves money, but saves time with 20 Ways We Save Money

7 Ways to Save Money

2007-07-23T15:41:00.000-06:00

Here are 7 ways to save up to $12,000 per year from MSN Money.

Wells Fargo Stops Offering 2/28 loans

2007-07-23T15:35:00.000-06:00

Wells Fargo has quit offering 2/28 loans, one of their most popular subprime products. A 2/28 loan had a fixed interest rate for the first two years and an adjustable rate (which could be adjusted twice per year) for the remaining 28 years if the loan was not refinanced. These loans made up 65% of the subprime mortgage loans. Other companies such as Countrywide, Washington Mutual, First Franklin, and Option One Mortgage have also followed suit.

Use Your Email to Filter out Scams

2007-07-23T15:20:00.000-06:00

Several times per week, my email contains "Nigerian Scam" offers, and emails related to other types of scams. An easy way to get rid of that email without reading it is to set a filter so that it is automatically deleted. Simply open your google email. Next to the search box is a link which says "Create a Filter". When you click on that link, you get a box which says "Choose Search Criteria". The first choice in that box says "From". Type the country codes for the country from which you do not want to receive email. Click on "Next Step" and check the box marked "Delete It". For a list of country codes follow this link.

Dateline to Catch and ID Thief

2007-07-23T15:10:00.000-06:00

Dateline NBC rebroadcast its "To Catch An Id Thief" episode. If you mised it you can see the internet version here. http://www.msnbc.msn.com/id/17822386/

Turn Your Cell Phone Into A Blackberry

2007-07-13T10:34:00.000-06:00

Who needs a fancy, expensive Blackberry when you can get email on your cell phone using Gmail and its text forwarding feature? Here's how to set it up:

Go to your "Google Settings" page and click on "Forwarding and Pop." Click on "Forward a copy of incoming mail to" and in the box where you input the email address add your ten digit cell phone number and the domain for your carrier.

Here is a list of the text messaging addresses for common US wireless providers:
Verizon: 10digitphonenumber@vtext.comAT&T: 10digitphonenumber@mobile.att.netSprint: 10digitphonenumber@messaging.sprintpcs.comT-Mobile: 10digitphonenumber@tmomail.netNextel: 10digitphonenumber@messaging.nextel.comCingular: 10digitphonenumber@mobile.mycingular.comVirgin Mobile: 10digitphonenumber@vmobl.comAlltel: 10digitphonenumber@alltelmessage.com OR message.alltel.comCellularOne: 10digitphonenumber@mobile.celloneusa.comOmnipoint: 10digitphonenumber@omnipointpcs.comQwest: 10digitphonenumber@qwestmp.com

The Republic of Geektronica blog explains how to set up filters so that you can decide which emails to have sent to your phone.

Go Virtual and Save Thousands

2007-07-11T14:35:00.000-06:00

The internet and modern communications had made it possible to work and live anywhere. You do not need to be tied down to a specific location. When I was practicing law, I was able to maintain my practice in Colorado from various locations including Kentucky, Texas, England, Germany and Mexico. Here is how I did it:

1. Find a Virtual Office Company

I use a Denver based company, The Intelligent Office. For a monthly fee, they provide live telephone answering, a mail box, and copy machine, fax and conference rooms for rent by the hour. They call it a la carte service and it means that you only pay for what you use. They have locations all over the United States. They provide a professional image. When clients call, their calls are answered live. The receptionist then forwards the calls to voicemail or to any location that you request. They will even schedule your appointments. By going virtual, we no longer needed a receptionist, cut our office expenses, sold our telephone system, and were able to replicate all of the features of a “brick and mortar” office for less than we paid for parking.

2. Leverage The Internet

Most things that were handled by administrative staff can now be done for little or no cost on the internet. Here are some examples:

a. Fax and Mail

I use efax.com for my business faxes. For a small fee, I can have my faxes sent directly to my email account. They do not need to be printed and I can automatically forward them to the correct people in my organization. When I was working from Europe and Mexico I used efax to have my mail forwarded to me. That way I could respond to it as if I was at home.

A new service Remote Control Mail scans all of your incoming envelopes and emails them to you. You let them know which pieces of mail you want to have discarded and the ones which need to be opened. They then open and scan the ones you request. This way, you never need to see the paper, and all of your incoming mail is stored electronically. This saves trips to the mail box, as well as enables you to monitor your mail from anywhere in the world.

b. Messages and Reminders

You can have all of your voicemails sent to one number. This way you only need to check one voicemail box instead of many. Google has just purchased Grand Central. It lets you listen as your voicemail is being left. If you want to speak to the person, you can jump in. Otherwise it goes to your voicemail.

Another service, Simulscribe, uses voice-recognition software to transcribe your messages and forward them to your email so you can check your messages and emails at the same time.

Many people are time-wasters. If you call them, even on a simple matter, you will spend at least an hour on the phone with them. By using pinger, you can return their call by leaving a voicemail. Your call goes direct to their voicemail so you can convey the necessary information without getting into a long, drawn-out, discussion.

Jott lets you send emails by telephone. You phone Jott, tell them who you want to message and dictate the message. Jott then transcribes the message and sends it as an email. I have found that their transcription is quite accurate, even for long messages.

Oh Don’t Forget, lets you send text messages by computer. You go to their website and input the phone number, message you want delivered, and the time that you want it sent. The site then delivers your message according to your instructions.

Finally Iping lets you schedule reminder messages. It then calls your phone to remind you of anything you choose from appointments, birthdays, or even medication reminders.

c. Calendaring

I use Google Callendar. It lets me input and retrieve my appointments from anywhere on the internet. It can also be configured to send my schedule to my cell phone or PDA.

d. Online Software

Open Source as Alternative is a service which compares commercial software products and offers open source (Free) alternatives. If you need software for a specific purpose, check it out before paying for commercial software. Many of their products are as easy to use as the commercial versions and offer similar or superior performance.

Thieves Use Google to Crack Safes

2007-07-11T13:38:00.000-06:00

For the second time in a month, burglars have downloaded information from Google during the commission of their crimes to learn how to crack safes. On June 10, 2007 a pair of burglars in Colorado used google.com to learn how to crack a safe at Bigg City, an indoor amusement center in Colorado Springs, Colorado. The thieves stole $12,000 in cash and have not yet been caught. Apparently the pair had tried unsuccessfully for over an hour. They then used Google to look up information on safecracking, found what they needed and were able to crack the safe. Later in June 2007 a fired restaurant manager in Wilmington, Delaware was caught after using Google for tips during an attempted burglary.

A Google search for “how to crack a safe” yielded 4.5 million web pages. According to Homeland Security Director Michael Chertoff, the information on the internet can assist terrorists. "They can train themselves over the Internet. They never have to necessarily go to the training camp or speak with anybody else and that diffusion of a combination of hatred and technical skills in things like bomb-making is a dangerous combination. According to the Times online, European regulators are considering whether or not to outlaw the publication of bomb making information on the internet. A recent Google search for “bomb making” produced over 700,000 websites.

Please Take Our Reader Survey

2007-07-10T12:03:00.000-06:00

Please take my Blog Reader Project survey.

Big Three Credit Bureaus Oppose Credit Freeze

2007-07-06T11:54:00.000-06:00

A recent USA Today article described the effectiveness of credit freezes for preventing identity theft. 37 states and the District of Columbia have enacted laws which permit a consumer to place a freeze on their credit report. Until it is lifted, the freeze can block access to the credit report and score by creditors as well as by the consumer themselves making it impossible for anyone to borrow money in the consumer's name. The Consumer Data Association, a tradegroup which represents the three major credit bureaus, has opposed freezes. They claim that freezes can hurt a consumer's ability to obtain emergency credit. However, the credit bureaus make millons of dollars annually by compiling and selling the consumer data, and freezes hurt that business. In 2006, Equifax earned $166.3 million dollars from the sale of consumer data. In 2006, Experian had $756 million in total sales. 21% of that revenue ($152.8 million) came from the sale of consumer data. Transunion is privately held so they do not have to release these figures. To learn how to place a freeze on your credit report and score, go to this website.

Buy Bump Key Proof Locks

2007-07-03T11:44:00.000-06:00

Recently, there have been many articles and videos posted on the internet concerning “bump keys”. These are easy-to-make, readily available keys which can be used to defeat the vast majority of deadbolt locks used in the United States, Europe and Asia. Bump keys can be purchased online, or can be bought from your local hardware store or locksmith. With a little practice, anyone can use them to gain entry into your home or business. There are over 2,390,000 websites listed on Google which contain information on bump keying and 345 online videos teaching this technique. Even if you have not heard of it, the criminals have.

This technique is insidious, because it leaves no sign of forced entry. If a burglar uses it, it will be difficult for a homeowner or business owner to prove that a crime took place. An insurance company could make the difficult to refute argument that the crime was staged or that the homeowner or business owner was negligent for leaving their door open. Finally, an intruder could gain undetected access to the property many times because of the nature of this technique.

To protect yourself, you should replace your locks with “high-security” locks. These locks cannot be bumped, either because they do not use keys, or because they are designed to prevent it.

Medeco Locks manufacture bump proof high security locks. They have a video on their website demonstrating how their locks prevent this practice. You may also want to consider, electronic keyless, remote or biometric locks.

Expert Tips to Avoid Identity Theft

2007-07-03T10:43:00.000-06:00

Marketwatch.com has a useful article regarding the ways identity theft and computer security experts protect themselves from identity theft. “Catch Me If You Can” identity theft expert Frank Abagnale and Other Security Experts discuss their techniques for avoiding identity theft. Here is a summary of their recommendations and a few of my own:

Use a Credit Card Credit Card issuers do more to protect their customers from fraud. To protect your credit rating, pay the bill in full each month. Also, if you do use a debit card, have the merchant run it as a credit card so that you do not give up your Personal Identification Number.
Also, if you have the debit card transaction processed as a credit transaction, you may fall within some of the protections offered to credit card users.

Use a service which monitors all of your credit accounts and notifies you by e-mail whenever someone is trying to use your credit.

Shred your documents with a micro cut shredder which reduced the information to sawdust sized particles. Abagnale recommends even shredding the back pages of catalogues so that dumpster divers cannot access your retail accounts.

Opt out of creditors’ information sharing arrangements. You can do it by telephone or by signing up at http://www.optoutprescreen.com/.

Set up your main banking accounts so that they do not permit transfers to other institutions. This way should a thief get your account information, they will be unable to transfer your money. Also, monitor your accounts frequently.

If you are going to shop online, do not use links created by search engines, type the address in your browser yourself. Some of the links are created by thieves to steal your credit card information.

Don’t write checks at stores. They are insecure and thieves can obtain account numbers, routing codes, addresses and other personal information simply by copying them. Also, there are techniques for altering checks by washing them with chemicals to change their amounts. They may also be scanned and altered.

Have a two-way firewall on your computer so that it blocks information from entering your computer and makes it harder for hackers to hijack your machine and send information out.
Don’t store your passwords on your computer.

Read more here

Reciprocal Review Carousel

2007-07-02T09:15:00.000-06:00

Reciprocal Review Carousel idea is based on a few simple yet effective link-building and blogging techniques I have learned:
Build value of the blog by creating a helpful link from within content.
Provide value to community by doing a review on a blog you personally like.
Link to YOUR blog has exact anchor text you want and helps you boost Google Rankings.
No more than 30 outbound links from any page to prevent penalties for link farming.
Viral effect of the link – as more bloggers participate, link to your blog with YOUR anchor text, coming from quality content post will spread.
Here is How to participate:
Copy the entire text between the specified lines.
Create a post on your site and put at least one paragraph explaining how you joined the Reciprocal Review Carousel.
Paste the text you copied into your post.
Remove the Bottom Review and At the Top add your own review with a link to a site reviewed, at least 2 sentences about the site and a note – Reviewed by: Your Anchor Text. Link your anchor text to your site. Here is an example:
WordPress Web 2.0 Guide is a blog providing very useful information on building your very own Web 2.0 portal based on WordPress. Detailed instructions and howto guides make it possible for anyone to create a sparkling and engaging blog and join the community of like-minded individuals. Reviewed by: WordPress Web 2.0 Spot-er
Sites Reviewed:
Andrew Wee writes and podcasts about affiliate marketing at WhoIsAndrewWee.com. He’s an absolute pro at keeping up with tech trends (and how to make moolah from them) as well as getting noticed FAST in the marketing/blogging world . He’s one to watch and follow by example. Reviewed by: Michelle MacPhearson, who likes teaching knuckleheads about Social Marketing Online.
Peter Lenkefi writes about Web 2.0 marketing strategies at Web2Center.com. He has some killer videos over there you should check out along with a ton of good information on blog marketing and various “new media” promotion tactics. Reviewed by: Link Building Maniac, Jack Humphrey, for the Friday Traffic Report

Andy-Coates.com is an original creator of Viralink concept and a blog publishing information on Magic, Personal development and blog development. I have found a wealth of information on getting your blog noticed and generating the traffic for free. Reviewed by: WordPress Web 2.0 Guide
FitForFreedom is well-established blog where you can find multitude of information on achieving financial freedom. Blog is run by Marco Righter and his writing style greatly adds to the value of information he provides. Reviewed by: Alex
Secure Your PC For Internet blog run by Colin and provides essential information everyone accessing internet should know. Identity theft is becoming more and more of an issue and by visiting his blog you can minimize the risk of being compromised. Reviewed by: Alex
VI-SU blog is all about WordPress, AdSense, SEO and Internet Marketing. Although mostly written in German I have found that using Google translate is worth the effort for his posts. Reviewed by: Alex
Home With Heather is a great informative blog targeting WAHM (Work At Home Moms) and run by … you guessed it – Heather Masson. Information on what works for her in Internet Business written is very easy to read and comes from her personal experience. Reviewed by: Alex
A Copywriter’s Blues blog published by Alex Badalic, a veteran of advertising turned musician gives you great food for soul. I have found some nice old videos of Johnny Cash performance and he has a lot more of vintage videos to satisfy fans. Reviewed by: Alex
Did You Smell That blog authored by one of the veterans on network marketing filled with business ideas you can use. David Ledoux is well known and respected in online community and now he makes his experience available via blog posts. Reviewed by: Alex
KipKay.com published by Kip Kay has a variety of fascinating video demonstrations including how to make an inexpensive flashlight which outperforms the expensive police models. Reviewed by: Pete

Time Running Out For Credit Renting

2007-07-01T11:56:00.000-06:00

Fair Isaac has announced that their new scoring model will stop considering "authorized user" accounts when determining a credit score. This is intended to stop the practice of credit renting where a person with bad credit pays one with good credit to name them as an "authorized user" on their credit cards. Under the old system, this could result in a quick 100-200 plus point increase in a credit score.

Identity Thieves Use Stolen SSN#'s to Create Fake Identities

2007-07-01T11:45:00.001-06:00

Identity thieves have started using stolen social security numbers to create fictional persons. In what authorities have termed "synthetic identity theft", thieves have started creating fictional persons. They use these identities for a variety of purposes incuding, employment, obtaining credit and open bank accounts. This is a much harder type of theft to detect, because the frauds are not committed in the victim's name. Oftentimes they do not even appear on credit reports.

Identity Thieves Create Fake Identities

2007-07-01T11:36:00.000-06:00

In a new twist to identity theft, thieves have started creating "synthetic" identities by stealing a person's social security number and "tying" it to a different name in order to create a new, fictional person. This is much harder to detect because the frauds are not committed in the victim's name so they do not readily appear on their credit reports. At the same time, the social security number may appear in many different databases, including those used for background checks. This type of theft is also much more difficult to recover from, because there is no way to

New Federal Statement on Subprime Mortgages

2007-06-29T15:32:00.001-06:00

The Federal Financial Agencies have issued new standards for subprime mortgages. These new standards include protection for consumers with adjustable rate mortgages which require that the lender provide 60 days notice prior to a rate increase to give consumers time to refinance their loans without a prepayment penalty. They also encourage lenders to enter into workout arrangements with borrowers prior to commencing foreclosure proceedings. Follow this link to the full text of this document. http://www.federalreserve.gov/boarddocs/press/bcreg/2007/20070629/attachment.pdf

WaMu to help refinance subprime loans

2007-06-29T15:21:00.000-06:00

June 29, 2007 01:44 PM Eastern Daylight Time
WaMu Response from David Schneider, President, Home Loans, Regarding Interagency Statement on Subprime Mortgage Lending
SEATTLE--(BUSINESS WIRE)--WaMu (NYSE:WM) fully supports the guidance and the goal of ensuring that mortgage loans are underwritten in a prudent fashion and communicated in an understandable way. No party wins when a lender is forced to foreclose on a borrower. We are well positioned to implement the guidance in our business. We've offered subprime mortgage products for more than 20 years and are focused on providing clear, understandable disclosures for our customers and ongoing training for our sales force.
WaMu remains committed to offering a range of products to meet individual customer needs. We are also committed to helping our current borrowers stay in their homes who may no longer fit current qualifying standards yet have a proven payment history. As part of this commitment, we will refinance or modify up to $2 billion in subprime loans at discounted interest rates to assist homeowners in stabilizing their finances and avoiding foreclosure. Our goal is to help our customers understand their various options and address their financial needs before they begin having problems making payments.
We remain concerned about the unlevel playing field that exists because the guidance does not apply to all lenders.

Credit bureaus sell your phone number to lenders - Los Angeles Times

2007-06-27T14:35:00.000-06:00

In another invasion of privacy, the nations largest credit bureaus have started selling leads to lenders. When you apply for a mortgage or other loan, the credit bureaus sell those leads to other lenders. Some lenders are paying in excess of $20,000 per month for these "Target Leads". To opt out of this practice and protect your privacy go to www.optoutprescreen.com. To get rid of sales calls, register with the national do not call registry at www.donotcall.gov.

Credit bureaus sell your phone number to lenders - Los Angeles Times

Welcome To My Blog

2007-06-27T11:42:00.000-06:00

Welcome to my blog. I started this to alert people to financial frauds, scams and schemes which could harm their credit or put them at risk of identity theft. I am also including some fun stuff which can help save money, and help you earn more money while doing less work. I am a former bankruptcy attorney, identity theft victim and future published author with a book coming out in in the Spring of 2008

This site has nothing to do with any of the following:
Kevin Trudeau
Kevin Trudeau's Debt Cures
Debt Cures That They Don't Want You To Know About
Consumer Credit Counseling Service, CCCS
Non-Profit Consumer Credit Counseling