"Tis the Season we Rack Up Debt

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The holidays are stressful for more reasons than family dynamics and making sure the turkey comes out perfectly. Debt is Shopper usually the number one stress producer and the holidays don’t help put us in the black. It’s easier to get INTO credit card debt than it is to get our, so make wise purchases and use cash when you can. Getting out of credit card debt is very difficult. Here are some tips:

Pay off the highest interest rate debts first by applying substantial amounts to your minimum amounts due; when that card is paid off, start on the next highest
Pay more than just the minimum payment
Cut up credit cards you don’t use and don’t make routine purchases on credit; if possible, pay your bills in full for those purchases
Live within your budget
Try to negotiate a lower interest rate on your account
Move balances on cards with high interest rates to cards with lower interest rates

Did you know?
Many credit card companies charge their members a few for being a member or a participation fee? Credit card companies have a variety of names for the fees that they charge. Take a look to see if you have any creative charges that apply to your credit cards.

Holiday Shopping, Circa 2008: Tips from the Federal Trade Commission
If you’ve ever heard the advice, “Never go to the grocery store without a list or when you’re hungry,” chances are you know why: you’re likely to buy more than you need and spend more, too. The same advice applies when you’re shopping for the holidays. Whether you’re shopping at the mall, online, or by phone or mail, the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that a little planning and know-how can help you deliver a holiday season that’s on budget and maybe even a little less stressful.

On Guard Online
Online Shopping

Quick Facts
Shopping on the Internet can be economical, convenient, and no less safe than shopping in a store or by mail. To help keep your online shopping experience a safe one:

Know who you're dealing with. Confirm the online seller's physical address and phone number in case you have questions or problems.
Know exactly what you're buying. Read the seller's description of the product closely, especially the fine print.
Know what it will cost. Factor shipping and handling — along with your needs and budget — into the total cost of the order.
Pay by credit or charge card, for maximum consumer protections.
Check out the terms of the deal, like refund policies and delivery dates.
Print and save records of your online transactions.

Layaway Programs
If you’re not keen on paying with plastic and don’t have the cash on hand, you may want to ask about a layaway program. Layaway purchase plans are designed for customers who want to buy merchandise without using credit or paying the full price immediately.

Layaways are not credit purchases. When you buy an item on credit, you take the merchandise home with you. When you use layaway, you typically make a deposit — usually a percentage of the purchase price — and pay over time until you have paid for the item in full. In exchange, the retailer holds the merchandise for you.
To avoid problems, get the store’s layaway policy in writing.

Tips for buying gift cards

With the holidays upon us, many opt for the convenient option of the “Gift Card”

Buy from sources you know and trust
Read the fine print before you buy. If you don’t like the terms and conditions, buy elsewhere
Ask about expiration dates and fees and be sure to provide that information to the recipient to help protect the value of the card
Inspect the card before buying; verify that none of the protective stickers or PIN have been removed
Consider purchase fees: Is there a fee to buy or activate the card? If purchased online or by phone, are there shipping and handling fees?
Check purchase exceptions: Can store-specific gift cards be used at the physical store and at the store’s website?

Did you know?
You are entitled to a free copy of your credit report once every 12 months

.Improve Your Credit Report

If you’ve ever applied for a loan or a credit card, you know the importance of your credit report.
Your credit report is maintained by consumer reporting companies that make it available to bankers, creditors, employers and a host of others. The report tells them if you pay your bills on time, whether you’ve filed for bankruptcy and if you have past-due accounts that have been referred to collection agencies.

A clean credit report ensures that you can get loans at lower interest rates. Contact the three major credit reporting bureaus and ask for a copy of your report:

Equifax—www.equifax.com—1-888-766-0008
Experian—www.experian.com—1-888-EXERIAN (397-3742)
Transunion—www.transunion.com—1-800-680-7289

If the report contains inaccuracies, dispute those in writing. Credit reporting bureaus are required by law to investigate such disputes.

To maintain a good credit record, make at least the minimum payment on all your bills on time. If you can’t do so, contact the creditor and explain your situation. Many will renegotiate your payments.

Did you know?
Most financial institutions will help you set up an automatic holiday savings account to prepare for next year’s holidays and help avoid debt in the future.

Did you know?
A lot of identity theft begins in the dumpsters. Many criminals gain access to personal information by rifling through trash.

Fight Identity Theft

In our impersonal world, identity theft has become almost as common as shoplifting. It happens when your personal information is used without your consent.

If you become a victim, act immediately. Contact your bank or credit union, credit card companies and creditors. Next, file a report with your local law enforcement agency. After that:

File a report with the Federal Trade Commission - (www.consumer.gov/idtheft or 1-877-ID-THEFT)
Place a fraud alert with all three major credit reporting bureaus:
Close accounts that have been accessed or opened without your consent.
If your long-distance account has been violated, notify the phone company.
Contact the post office if your mail has been stolen.
Consult the Social Security Administration if you think someone is using your number.
Notify the U.S. State Department if your passport has been stolen.
If a collection agency calls, explain that you are a victim of identity theft.

Resources:

Division of Banking
303-894-7575

Division of Financial Services
303-894-2336

Division of Securities
303-894-2320

The Federal Trade Commission