Identity Theft

It’s still an issue especially when people are hurting. There may be smaller crimes taking place through according to statistics crime really hasn’t risen that much. That is because the statistics have been skewed. IF10% of the population was a victim of theft a decade ago, but the population rose along with crime proportionally and 10 years later there is still a 10% rate in robbery or theft, the number are being used to show that there hasn’t been a dramatic rise in crime.

Let’s say you take precautions at home and shred bills, don’t give out your credit card number or any information over the phone for anything that is unsolicited and shop at secure sites. You still may be a victim of identity theft. When you are shopping, someone may be taking a picture of your credit card. The Department of Justice calls this “shoulder surfing.”

Many people do not realize how easily criminals can obtain our personal data without having to break into our homes. In public places, for example, criminals may engage in “shoulder surfing” – watching you from a nearby location as you punch in your telephone calling card number or credit card number – or listen in on your conversation if you give your credit-card number over the telephone to a hotel or rental car company.

Many times, I have overheard people giving their credit card number out in public on the phone. Granted, I don’t want to do anything with this information but a thief definitely would. A thief may also take a picture of your credit card as you hand it over to the cashier taking a picture of all the information they need to do some damage to your credit.

Let’s say you still receive paper statements from your bank or even from an investment account. If it doesn’t arrive on time, be concerned someone else may have intercepted it and can gain access to your accounts.

Scammers may even call your house or send you a realistic looking bill stating that you owe money. If you know that you have had no closed accounts or bills due, call your credit card company or check to see what this is about. When inquiring about fraudulent charge, do not give your social security number to anyone. Ask what the previous address is for the person and the person’s age. There are times when bill collectors are doing skip tracing to hunt down debtors that they find the wrong person.

One recommendation that the Federal Trade Commission makes is staggering the free credit reports that you can receive (one per year, per company) to see what the credit reports are showing.  You can request your free report online, by phone or by mail. AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. No matter how you request your report, you have the option to request all three reports at once or to order one report at a time. By requesting the reports separately, you can monitor your credit more frequently throughout the year.

Unfortunately, twice I have had free credit monitoring offered to me because of breeches in security. One was because of an employer and the other because an online company’s site was hacked. The services were nice, but I probably wouldn’t want to pay $20 or more each month to have credit monitoring. In both cases they were just offering the service so they wouldn’t be liable because of theft.

I will gladly pay you Tuesday for a hamburger, in a cartoon this was cute. For a state in the 21st Century it’s not. California’s budget woes will make the state start handing out IOUs. This is a very dire situation. People who depend on that money can’t give their creditors IOUs. What can they tell their creditors or utilities? We can’t pay you because we’re not getting my money. Even though the money isn’t directly for government salaries the vendors who deal with the state won’t receive payments which are used for salaries and their own business expenses.

Some states are notoriously slow in making payments to vendors but regular workers always had priority. Who will be next if the state won’t be able to pay its creditors? Furlough days for government workers is the pejorative buzzword that has been going around. The small vendors and businesses that aren’t getting money from the state will contribute to the further decline in the money problems.

If an agreement is reached before 4 p.m. CST then the IOU would just be nothing more than a bad dream. Otherwise, those who deal with the state of California as a customer may have to face some budget woes of their own.

The state’s long-term bond rating is in jeopardy, as well. It already has the worst credit rating in the nation.

Fitch Ratings last week downgraded the state’s long-term general obligation bonds to A-, from A, and placed them on a negative ratings watch, signaling the company’s concern about California’s ability to solve its liquidity crisis.

Just like individuals, those with the worst credit ratings have to pay more to borrow money which will cost the taxpayers more in the long run.

Here are a few interesting articles and websites.

• Charitable Giving Declines

I could have told you that since instead of junk mail, I have been getting pleas via snail and email from organizations I have never donated to, donated to in the past or never knew existed.

• Russian Recession Plagued Town Revolts

This is what happens when a quarter of your town is out of work overnight – they protest.

• Fewer Foreclosures in May

The number is still very high.

• Go BYO.com

This is a listing for area restaurants that allow you to bring your own wine. Even if you order the least expensive glass on the menu, that can still be about half the price of your entree. The site lists corkage fees and lets you search by location. There are BYO sites for 10 US cites.

Fed up with the Recession?
Bad news… saving and cutting back may have been a fad for some. Spending less on everything isn’t flying with some people.

• You Can Still Retire Rich

Short version: work, continue to save, start saving if you haven’t already. Also, did I mention you may have to work well into your 60s? You’ll have more money though.

• How the US Surplus became a Deficit

HINT: The current president’s predecessor’s policies had a lot to do with it.

Thrift store and resale shop prices aren’t always great deals.

Here are some examples of prices:

• Yarn purchased new at craft store on sale for 16 ounces of acrylic yarn – $5. Recently seen at a thrift store a semi-tangled, used skein of similar yarn  - $4. Not a bargain.

• A bargain is a bag of yarn with four 3 ounce skeins for just under two dollars. (On half price day, this was 95 cents so it was a real steal!)

• Stainless steel cream and sugar set with small tray – $5. Bargain. Plus being stainless steel this offers the added benefit of not needing polishing as with silver.

• When thrifting, books are a bargain if they are under a dollar for a paperback and two dollars for a hardcover. 

• A ladies lined rain coat with removable lining in very good condition – $12. Good price.

Thrift store prices are often lower than resale shops or consignment stores because they are less selective about their merchandise and basically want things to go. Even if some of the items are new, religious or veteran affiliated stores receive many donations and need people to buy so that they can restock the shelves.

Knowing the true cost of an item is important also when going to garage and estate sales. Also when you are on the other end of a sale, as the seller. If you don’t want to have too many items left over at the end of a sale, then you should definitely price your items to sell. 

Taking a trip to a regular store will give you an idea of the quality of items and what the prices are. This does not mean that you like the prices, but will give you an understanding of the quality. One drawback from thrift stores and garage sales is that larger items need to be moved from a place. I saw a large round marble table priced at $250 which would need to have professional movers come in and move it for you, but paying the movers plus the cost of the table would definitely be a great deal for the table. 

Bargain hunting can be hit or miss. If you know prices, then you can avoid the misses.

Lacking willpower?  Having difficulty sticking to your budget or diet or career goal? Then as the website Stickk announces, “put a contract out on yourself.” You sign up with a goal in mind, then make a promise to donate money or do something that you really don’t want to do, such as donate money to an opposing political party or organization. To keep you honest, you select another person who determines whether or not you have really been doing what you are supposed to do. The site has good intentions.

The “commitment contracts” are also ways to help users reach their goals – if you pony up some cash toward a charity (or a person) you really don’t want to give money to, then you will definitely work harder toward achieving your goal.

Many of the examples on the Stickk site are weight loss and exercise goals, and some personal project type goals – work on a novel, a few are work related.  The site is interesting, though I can see ways in which people may cheat, especially if they are just putting up cash. Having to spend your time on a project you wouldn’t want to do , such as volunteering for a charity you don’t like or helping a cranky relative would also be a deterrent and keep you on track. Referees also have to report on whether or not you are honoring your contract. Users do not have to have a referee, but must rely willpower and honesty.

Willpower and determination also make a difference when you are making a commitment. A commitment contract seems to be like too much trouble to me. If it is something that you really want to do, then set a goal and do it on your own. Having to report online and informing everyone you know about I will not necessarily make you more successful.

Low on willpower, tend to quit what you set out to do… then Stickk may make you do it.