By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
[The following is taken from The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano. For more information, click on the title above.]
Couples who work together on their finances have a significantly higher success rate in achieving their goals than couples who do not work as a team.
How can you begin working as a team? Do the following habit-building project. Then continue it for the rest of your lives.
It involves three things:
- Blocking out several times a week to meet to discuss your finances.
- Learning and practicing how to work as a team on an ongoing basis.
- Obtaining a copy of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace book and workbook set. (See below how to order your copy.)
If you are married or have a significant other, we strongly recommend that you read The Back to Basics Book of Money out loud together, commenting and sharing your thoughts and opinions. If time is a challenge, one of you can read while the other cooks dinner or cleans
up the kitchen after a meal.
Or wait until the children are in bed and the dog is snoozing at your feet. Turn off the television and try to avoid interruptions. If possible, set aside some time (even just 30 to 60 minutes) every day several days each week. (One successful strategy is to block out an hour before a favorite television program. Devote that hour to building up your money management skills, followed by an opportunity to kick back and relax together in front of the television.) Remember, learning how to build financial peace and stability is not an afterthought. It is a significant and potentially challenging undertaking. Take it seriously.
If your partner is not interested in becoming deeply involved in this process, but is at least willing to listen and possibly make changes, provide im or her with summaries and discuss the ideas, steps and strategies and new skills you are learning each week.
The first step, if you haven’t already done so, is to meet with your other half and review the opening pages of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. Go through the book together. Then sign the pledge below.
Financial Partnership Pledge
We promise to work together to learn the ten Money Skills in the book, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and we agree to devote no fewer than _________ hours a week to mastering these skills.
Partner:
___________________________
Date: _________________
Partner:
___________________________
Date: _________________ |
The bottom line: Work together. It takes practice, but the result is financial stability. Next week: Overcoming Marital Guerilla Warfare.
$ $ $
Want to learn more about how to bring your finances under control? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center ebsite for $27.99 total.
To order, send a check to John Ingrisano, 4279 Hunter Road, Gainesville, GA 30506.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@jringrisano.com) or call my direct phone line (770-314-2649).
John Ingrisano
Director
Family Finances Conference Center
4279 Hunter Road
Gainesville, GA 30506
(770) 314-2649
john@b2bbookofmoney.com
John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (770) 314-2649.
By John Ingrisano
How to Become a Team
By John Ingrisano
Director, Family Finance Conference Center
[The following is taken from The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano. It is based on Wealth Builder # 2 from the Workbook. For more information, click on the title above.]
Working as a Team
Turning your partner into your financial partner is really very easy and simple. This project you are about to begin is a habit-building exercise that you can and should continue for the rest of your lives. It involves two things:
- Blocking out several times a week to meet to discuss your finances with your spouse.
- Learning how to work as a team on an ongoing basis.
If you are married or have a significant other, we strongly recommend that you read this book, The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, out loud together, commenting and sharing your thoughts and opinions. If time is a challenge, one of you can read while the other cooks dinner or cleans up the kitchen after a meal.
Or wait until the children are in bed and the dog is snoozing at your feet. Turn off the television and try to avoid interruptions. If possible, set aside some time (even just 30 to 60 minutes) every day several days each week. (One successful strategy is to block out an hour before a favorite television program. Devote that hour to building up your money management skills, followed by an opportunity to kick back and relax together in front of the television.) Remember, learning how to build financial peace and stability is not an afterthought. It is a significant and potentially challenging undertaking. Take it seriously.
If your partner is not interested in becoming deeply involved in this process, but is at least willing to listen and possibly make changes, provide him or her with summaries and discuss the ideas, steps and strategies and new skills you are learning each week.
The first step, if you haven’t already done so, is to meet with your other half and review the opening pages of The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, Go through the book together. Then print out and sign the pledge below.
Financial Partnership Pledge
We pledge to work together to learn the ten Money Skills in the book, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and we agree to devote no fewer than _________ hours a week to mastering these skills.
Partner: ___________________________ Date: _________________
Partner: ___________________________ Date: _________________ |
So, work together, as partners. This is how financially stable couples build wealth. Start today.
$ $ $
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
Yes, it’s a tough economy. Still, if you have been unemployed for more than six months, you’re doing something wrong. See if any of the following sound familiar:
- I’m waiting for my unemployment benefits to end. If that is your attitude, you need to reassess your thinking. People who respect themselves take benefits they need, but they do not see unemployment or welfare as a lifestyle. Get out the door and start looking for work before what is left of your self-esteem is gone. Do it for you. Do it for the ones you love. Just do it!
- I’m waiting for work to come to me. If you are out of work, your full-time job is … to find a job. Again, that’s your full-time job. That means no filing for unemployment and then sitting around watching daytime television. Hit the streets, make phone calls, visit potential employers, yes, even out of town, if necessary. Do that eight hours a day … and you will find a job.
- I have reasons (excuses). If your car is broken down and you have no money to fix it, that does not mean you have an excuse not to find a job. Hitchhike or ask a friend for a ride. In other words, look for a job, not an excuse.
- My job must meet certain conditions. Bull! The only condition is that it be a job and that it pay you. When I was a kid, one of my jobs was to take the trash to the curb every Sunday evening. My mother never failed to comment: “Johnny, honest work is honest work. Don’t ever think there’s a job you are too good for.” Because of her sage advice, there have been times when I have taken jobs that I didn’t like. But if they were honest and put food on the table, I took them. (And, yes, I spent every free moment looking for something better, but I always worked.)
Common “conditions” why some people refuse to take a job sound like this: “I’m overqualified,” “I’m under-qualified,” “I don’t like that company,” “The job is too far away,” “They have lousy benefits,” or (and this is my favorite) “I don’t want just any job; I’m waiting for the right job.” Today, every and any job is the right job.
The bottom line: If you are unemployed, get off your duff and look for work … no excuses and no conditions. Your livelihood and your self-respect are counting on you. Get moving!
$ $ $
Want to learn more about how to take charge of your life and your finances? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
“Need cash? Send us your gold jewelry, and we’ll send you
a check.”
With the price of gold at record highs (hovering around $1,600 an ounce in June 2012), and many people struggling financially these days, such offers may sound tempting.
What you need to know before you send in your jewelry for cash:
Number 1: Accept that, unless you are an expert, you know little about the true value of your gold. It is very difficult (almost impossible) for the average Joe (or Jo) to determine the actual worth of jewelry in his or her
possession.
For example, 24-karat gold is 100% pure, while 18-karat gold is 75% pure. Even if you do know the purity, you then have to figure that you will not get retail or market value, but a discounted price reflecting the dealer’s profit. Plus, that value floats every day.
When buying gold jewelry in New York’s Diamond District, I would select a piece I wanted, weigh it on the dealer’s scale, punch in the weight and market rate-per-ounce on my calculator, factor in a discount for me, and make an offer. In the end, I would strike an okay deal, but nothing to brag about.
Number 2: Do not mail in your gold without at least talking to the would-be buyer. The odds of being ripped off and/or getting bottom dollar for your gold are high if you just plop that old wedding band and grandma’s bracelet into an envelope and mail it to some far-away company. You might get as little as 10 cents on the dollar … if you hear back from them at all. Be smart.
Number 3: Gold has no sentimental value. The price is based not on the fact that it was your great grandmother’s wedding ring, but its weight and purity.
Number 4: Gold and silver coins are different. Their value is based on their rarity and collector value.
Recommendations:
- Educate yourself. Do not just blindly trust some stranger to give you a good deal. (If that’s how you do business, I have some great real estate in Florida; it’s only under water at high tide.) Find out the purity of your gold and read an article or two on how gold is valued. The more you know, the better the odds that you will not be scammed.
- Insure and certify receipt of any jewelry you send by mail. Never send to a post office box.
- Bring coins to a collector (called a numismatist) to get some idea of their value.
- Bring gold to a local jewelry store (not a big chain, but one owned by someone in your community), again, to get at least a general idea of what it is worth.
The bottom line: You will not make a killing on any cash-for-jewelry deal. However, if you must sell, a little caution and research may help put a few more bucks in your pocket.
$ $ $
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
[The following is based on ideas in The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano. For more information, click on the title above.]
Some people spend their lives on a financial treadmill. They work 40 hours a week, 50 weeks a year…yet they never seem to get ahead. Even many people earning six-figure incomes live from paycheck to paycheck.
It doesn’t have to be this way. The key is consciously to build up your net worth by taking specific steps.To get an idea of just how well you’re ma naging your money, complete the following self-quiz.
Print out this self-quiz: Then answer each question in terms of how it applies to you on a scale of 0 (for no or never) to 10 (for yes or always):
_____ Do I have financial objectives? You must know where you want to go before you can figure out the best way to get there. Give yourself 10 points if your objectives are in writing; zero if you just live from paycheck to paycheck, without any plan.
_______Do I know my net worth? This is the flip side of thefirst question: You must know where you are before you can figure out how to get where you want to go. Your net worth is the total of your assets minus your debts.
_______Do I actively manage my household spending? Give yourself an eight if you have a written budget; 10 if you actually follow it; zero if you just pay the bills and spend the money, without a clue where it all goes each month.
_______Do I save a portion of my income every month? Give yourself one point for each percent of your income you put aside each month in long-term savings.
_______Do I use cash for most purchases? Give yourself an automatic ten if you always use cash; zero if you write checks for everything (such as at the grocery store) or use debit cards as if they were cash. These are worse than credit cards; if you use credit cards often, give ourself a five.
_______Do I carry a debt load on my credit cards? If you insist on using credit cards, give yourself an eight if you ALWAYS pay off your credit card bills each month; ten if you do not use plastic at all.
_______Do I know how much money I need to save to retire comfortably? There is no simple, one-line answer. Go online and find a calculator or meet with a financial professional.
_______Do I take advantage of tax-advantaged accumulation vehicles? These include IRAs, 401(k) plans through work, annuities and the cash value element of life insurance. Give yourself one point for every percentage of your income you are saving each month.
_______Do I have adequate life insurance? Life insurance is the most cost effective way to protect your loved ones and make sure your objectives are met if you die prematurely. Owing life insurance is part of a smart financial strategy. Give yourself one point for how much life insurance you have based on your gross income. (Example: give yourself three points if you earn $50,000 and have $150,000 of coverage; even points if you have $350,000.)
_______Do I have a current will? Give yourself zero here if you have no will or if it hasn’t been revised within the last ten years. Give yourself ten points if it has been updated within the last 12 months; deduct one point for as many years as you have updated it.
_______ TOTAL
How did you do? If you scored 80 or above, you are probably doing what it takes to get ahead. You also realize that, while some sacrifice is necessary, it really isn’t that difficult. If you scored between 60 and 79, you are fairly typical of most people. However, you may find that you’ll never get off the financial treadmill and get ahead. If you scored 59 or below, you may be living on borrowed time, seriously mortgaging your future by overspending today.
Recommendation: Address the areas where you rated the lowest. Then take steps to raise your score. When to start? Immediately! When your finances stabilize and your standard of living climbs (and it will, if you work to bring up your score), you’ll find that the effort was worth the pain … and the gain.
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By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
[The following is taken from The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano. For more information, click on the title above.]
I have always found money interesting and challenging. I have written about and taught
money management skills for 35 years. Three major things I have learned about people
and money during those three decades:
# 1: Most People Struggle with Money
Many people struggle when it comes to using money as an effective tool to achieve their goals. This is mostly because they have not given much thought to money, except to spend it and then worry about it on a daily basis.
In fact, to be painfully blunt, there are those among us who are flat-out ignorant when it comes to money. I have met people over the years who see no connection between the income they earn and the lifestyle they live. That is not meant to be a blame or judgment
statement, just a fact. They do not have a clue how to use money, manage money, do much more than work like dogs 40 or more hours a week to earn money, and then turn around and spend it like drunken sailors on shore leave. They earn it and spend it and borrow it. The bank and the credit card companies — everyone else but them – are in control of their financial lives.
# 2: Money Problems Can Destroy Relationships
Second, while money cannot make people happy, the lack – or mismanagement – of money can make them miserable. Because of their financial situation, many couples find that their lives are out of balance, if not completely out of control, not just financially but in every respect.
Keep in mind that there is a close correlation between money problems and domestic problems. Look at most divorces. When we get beyond “He’s a jerk” and “She’s impossible to please,” the real reason www.order-westernunion.com behind most divorces and marital problems is MONEY.
On one hand, money is the most common reason for arguments, what couples fight about the most, and the number one reason divorcing couples say is the cause. On the other hand, money can be an amazing source of marital harmony and unity. When finances are in balance, when couples are in agreement and pulling together in unison, this common cause serves to strengthen the bonds of the relationship.
At the very least, it provides a stable platform upon which to build harmony and settle other differences. Perhaps that’s because being financially in control and secure makes people happier and more confident. Take away ongoing money concerns and most folks would walk through their days with heads held higher. They’d sleep a lot better, too.
I’m not a psychologist, but I do know that when I’m not worried about money, I enjoy every other aspect of life more fully, and I’m much more pleasant to be around. I suspect you are the same. If you doubt it, ask yourself how worrying about paying an overdue bill, using a credit card when you know you are already having trouble making payments, or finding that you have a 31-day month but only a 28-day paycheck — how all these distract you and reduce your ability to enjoy your life.
Money makes a difference in our attitudes and our confidence. It is a powerful tool.
# 3: Financial Health & Stability Can Start TODAY!
Finally, I learned that no matter how bad a person’s financial situation may be, it is NEVER hopeless. It can be turned around and fixed. Depending on how deep the hole, it may take some time to crawl out of it, but every day can show some improvement in standard of living.
No, the cure is not always easy and can rarely be completed in a flash, but if you are determined to improve the quality of your life and your relationship, you can start today, and you will be amazed at the positive changes that will begin almost immediately to flow into your life. Most of all, every day that your finances can be improved by a fraction, an inch, and then a foot (or perhaps better stated as a penny, a nickel, and then a dime), brings you that much closer to financial security, strength and peace.
What is the alternative? Ignoring financial problems is like speeding a hundred miles an hour down a highway with a brick wall around a bend. You may not know which bend, but that wall is there, and the crash will be a messy one. Guaranteed. So, the time is now to slow it down, turn it around and head in the opposite direction.
$ $ $
Want to learn more about how to bring your finances under control? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
I had to laugh at my own foolishness recently. Here I am, the money guy, offering advice on how to make, spend, keep, and manage your assets. However, I ended up paying 40% more for a meal. Here’s how:
I was at an airport last month, grabbing a quick bite between flights. The price for my tortilla wrap came to $4.99. While standing at the counter, I also realized that I needed something to drink, so, without thinking, I picked up a $1.99 bottle of water.
As I walked away, having already cracked the seal on the water, I overheard the next person in line ask for a salad and a “glass” of water. The counter clerk, without hesitating, scooped up some ice in a cup and ran water out of the tap. No charge. Wow! It was a head-slapping V-8 moment! I walked away shaking my head, half annoyed and half amused at my own foolishness and lack of thrift.
The point (two points, actually): First, in the United States, the water that comes out of the tap is safe and drinkable, no matter what anyone says. Bottled water may have its place, but it is an expensive luxury.
Second, if we are not vigilant, we can be nickeled and dimed to death at every turn by hidden fees and add-ons. In the airport incident, I was less than thrilled at paying nearly $2 for a bottle of water. When I finally thought about it, however, what really ticked me off was that I could have gotten that same product for free. Plus, it jacked up my tab by a full 40%! (Oh, and it’s not the vendor’s fault. I take full responsibility.)
So, in the words of Ben Franklin: “Watch the pennies, and the dollars will take care of themselves.”
***
Want to learn more about money management? Visit The Family Finances Conference Center. We also do affordable seminars and money management workshops for businesses, nonprofits, and other groups. All programs are tailored to the unique and individual needs of your business or organization, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
By John Ingrisano
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By John Ingrisano
Director, Family Finance Conference Center
The surest way to screw up a marriage is to get deep in debt, spend more than you earn, and worry about how you will pay the bills each month. The “Quarrel Factor” goes up and up and up. If this sounds like you, why not look at some ways to bring it back down again?
I’ve seen it time and time again: A couple spends like drunken sailors, ignoring the simple concept of balancing income vs. outgo. They take advantage of “easy” credit to pile up debt and live the great life, deferring payments and gradually becoming unable to make even those minimum payments each month.
Then it gets really bad: An otherwise reasonably happy couple begins to snipe and quarrel. Part of the reason is that the relationship depended on spending money – buying unnecessary stuff, going on vacations they cannot afford, dining out three or four times a week. Now that they cannot afford to add one more dollar of borrowed money to their lifestyle, they are stuck … together … at home … with no money.
They get frustrated, begin hoarding money, sometimes lying to each other. They lose sleep over bills. Often, the one who begins to realize first that they are in financial trouble tries to watch the pennies, and then begins to resent the one who still seems oblivious. At the same time, the spender begins to resent the goody-two-shoes who is trying to fix the mess they’ve gotten themselves into. Again, they are stuck at home, together and irritable, with no money. That’s a formula for disaster.
They begin to fight, often about everything but the money issue. She’s a nag. He’s immature. Why do the kids open a can of soda and let it sit? You never want to go out for a movie anymore. And on it goes.
Ultimately — and way too often — the end is divorce.
Seriously. One of the major causes of marital disaster is wrangling over money. For many couples in over their heads, it is a small pebble in the shoe that has grown into a major rock, causing constant pain and irritation. They go from fight to flight and will do anything to get away from each other. They part, declare bankruptcy, lick their wounds, and try to build new lives … all because they let their money management (correction: lack of money management) get out of control.
If this sounds like you, are you ready to make a change? I talk to couples all the time who are in financial stress. It always delights and amazes me how straightening out their finances reduces the “Quarrel Factor” by 50 percent in some, 75 percent in others, yes, even 100 percent in still others. Most of all, it is fairly easy to do. Though it may take several years to totally correct their financial mess, they can begin to take charge of their financial disaster within days.
Instantly, as I have seen time and time again, the relationship rebounds. One reason is that they feel back in control of their situation; another is that they are again working together as friends and partners toward a common goal.
Where do you start? For countless couples, the first step is the decision to fix the mess they are in. Then, it is a matter of getting on a program, a system, that helps them stop spending, whittle down debt, and gradually build assets. It doesn’t matter if your income is five figures or six figures or higher; nor does it matter is your debt load is several thousand dollars or several hundred thousand dollars. It’s time to start. It is doable.
That’s why I wrote the book and workbook, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. They contain ten proven, step-by-step “Couples Money Skills.” Plus, the workbook (which closely dovetails with the text) offers 31 practical, hands-on Wealth Builder activities that can help you and your spouse build financial and domestic stability.
Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total. Or send a check to John Ingrisano, Family Finances Conference Center, 209 Church Street, Algoma, WI 54201.
This book set comes with a money back guarantee. Not happy with the results? Return them for a full refund.
Also, if you are looking for a good Christmas gift for a family member, consider a copy of this two-book set. It may be the best gift you can give your adult son or daughter.
Become a team again. Bring peace back into your home. Most of all, become the loving, caring couple you used to be and reduce the “Quarrel Factor” in your life to zero.
***
The Family Finances Conference Center also does seminars and money management workshops, tailoring programs to the unique and individual needs of businesses and nonprofit organizations, their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (920) 559-3722.
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By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
It happens more and more these days: You open the mail to find a bill for a credit card or store account you do not recognize. If that’s not enough, the invoice has thousands of dollars of charges on it. Somehow, identity thieves got their hands on your personal information and went to town on your nickel, setting up new credit card and installment accounts from coast to coast and beyond.
If so, you’re not alone. More than eight million people in this country are victims of identity theft each year.
Fortunately, there is a new tool in the battle to stop being ripped off, known as a credit report lockdown (also called a credit freeze or security freeze). This tool works by blocking identity thieves from applying for credit cards or setting up bogus loan accounts, even if they have your personal data.
Credit report lockdowns are available from all three major credit reporting agencies (Equifax, Experian, TransUnion). They work by blocking the release of data for new account applications without your permission.
How they work: Security freezes help prevent a very specific type of identity theft, which occurs when a criminal attempts to open credit in another individual’s name. Lenders typically require access to the borrower’s credit report before issuing a loan or credit card. If the lender is blocked from obtaining the applicant’s credit report, it is unlikely the loan or credit card will be approved. The result is a reduction in the risk that loans or credit cards will be issued fraudulently.
The freeze is an all-or-nothing deal, however, in that the credit freeze effectively stops any access to the credit report, with the exception of current lenders. If you place a freeze on your credit report, you must request that the freeze be lifted if you want to apply for new credit. You can lift a freeze for a specified time period, such as two weeks, or to allow a specifically named lender access to your account information.
Note that a security freeze generally does not apply to circumstances in which you have an existing account relationship and a copy of your report is requested by an existing creditor for certain types of account review, collection, fraud control or similar activities.
There are drawbacks. While the concept is fairly simple, the credit lockdown process itself can be fairly difficult to manage. Specifically…
1. You might end up blocking or at least slowing your own legitimate credit applications. So, if you choose to place a security freeze on your credit file, be sure to plan ahead for all of your credit applications.
Remember: This also can also impact more than credit card and other loan applications. A security freeze could block or delay approval of applications you make regarding a new loan, credit, or mortgage, as well as issuance of insurance, approval for government services or payments, leases on rental housing, employment,
new investment accounts, licenses, and even cellular telephone contracts, utility approval, internet credit card transactions and other services, including extensions of credit limits at the time of a purchase.
2. There are costs involved. Though the laws in some states provide that you may be eligible for a free security freeze if you are the victim of identity theft, the typical cost is $10. (Unfreezing your account will cost another $10.) Since you must contact all three reporting agencies separately, each change could cost $30.
3. The process can be slow and cumbersome. You may be required to submit detailed documentation, mostly for your own protection, especially when lifting a freeze. Plus, you must contact all three credit reporting agencies individually.
4. Glitches can occur. A lot can go wrong administratively, especially since you are dealing with three separate entities. While most of the agencies’ requirements are uniform, there can be variations. If you end up having to resubmit information, additional delays can ensue.
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Are you experiencing problems with your security freeze?
If you need to speak with a representative regarding a problem with your security freeze, use these phone numbers:
· Equifax 800-846-5279
· TransUnion 888-909-8872
· Experian 800-821-8805
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5. A security freeze is not a panacea. According to the Federal Trade Commission, only 15 percent of all cases of identity theft involve fraudulent new account origination. So, a security freeze offers good but limited protection in a specific, narrow range of situations. It will not prevent identity theft in the majority of cases.
Is a security freeze worth the time and cost? That depends. If you have ever been the victim of ID theft, you may well decide yes. Also, a security freeze is a good way to add an extra layer of protection to thwart identity thieves. However, keep in mind that there are a number of details and limits about which you need to be aware. Also, if you do plan to expand your credit or make other contractual commitments in the near future that will require a credit check, you may want to hold off. Otherwise, you could end up scrambling to unfreeze your report.
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By John Ingrisano
KNOW YOUR CREDIT CARD RULES
By John Ingrisano
Director, Family Finance Conference Center
The devil is in the details when it comes to credit cards … and, no, it is not accident that you get notices in the mail every other month about “minor” changes to your credit terms. Does anyone really read those announcements?
Well, here is one update: The credit card rules have changed … again. Under the 2009 Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which went into effect last year …
- If your card has several rates (such as through a promo or transfer offer), payments above the minimum must be applied to the highest interest rates. In the past, it was common for card issuers to credit payments to low rates first, keeping you paying interest on the higher rates. So, this rule can save you a ton of interest.
- Rate increases cannot be applied retroactively to existing balances unless you are delinquent on your bill.
- Your children under age 21 can no longer apply for a card alone. You must co-sign the application.
- The issuer cannot automatically charge a penalty if you exceed your limit (though your interest rate can be hiked).
Note: These are just some of the newest rules. There is always fine print. We recommend that you take some time to actually read it.
Also, note one big exception: The above rules only apply to consumer cards, NOT to business cards.
The best idea of all: Put away your credit cards completely. If you cannot afford to pay cash, then you cannot afford to buy it. Period.
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Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (920) 559-3722.
