Be careful with your credit – Military Identity Theft

While those of us who serve in the American military may be used to some extra risks in life; it is the unexpected ones that can really surprise us. One such risk is the larger chance for identity theft.

Douglas Aaron, a credit repair lawyer states that, Military are often focused on by criminals for credit identity theft because they are usually out of the country for long periods of time. Thieves who go to the trouble of stealing other individuals information don’t like to be quickly shut down. People who go on a tour-of-duty for a year or more allow such an opportunity.

Once a criminal has obtained your particulars, including your social security number, name and birthday, they will start opening new lines of credit, taking personal loans and buying cellular service.

More sophisticated identity theft will add some form of picture ID for larger bank loans, car loans or camper loans.

Anyway, returning home to a huge amount of bills or trying to make purchase with your credit only to realize it has been ruined by thieves is something no one should have to deal with. To add insult to injury, fixing the situation often requires months to a year or more to iron out all the problems created by this type of theft.

Cory Baker, a North Carolina resident said: “I served my country for two years, out of the country. This was not the type of homecoming I hoped for. Proving to the courts that I did not make $7,000 in phone bills to Greece takes a lot of time and is utterly distracting.”

Many of these types of problems could have been prevented or stopped a lot sooner with a little more attention to ones finances, especially monitoring ones credit report.

Knowing what is on our report, cleaning up and fixing mistakes, constantly trying to increase your credit score, is something we can all benefit from doing, says Douglas Aaron. If you don’t know your score, how will you know if its gone down?

At the very least, order your scores today. Today’s economic problems demand our attention; they demand we are prepared for emergencies.

High school graduation is upon you and your child wants to take the next step. College is not cheap these days. The costs continue to rise each year. This fact has some folks asking, should college students pay for their education?

Higher education is a necessity these days. A student with an advanced degree beyond the high school diploma has a world of options available to them. Depending on the program of study, college students can apply for internships and gain valuable experience while they are still in college. All of this adds up to a brighter future in the world of work.

Most families include more than one child. Many parents find it difficult to foot the bill for college education times 2 or 3. The children, on the other hand, are in no way able to pay for their education on their own with a small part time job.

Good students begin thinking about their higher education early. As they are nearing graduation from high school they already have an idea what area of study the want to enter and what college will offer the best program in that area.

Students that use high school as a staging area for further educational pursuits are, in essence, trying to pay for their education. Good grades can lead to local scholarships. Athletic students can earn tryouts from college scouts that could lead to scholarships.

While it is true that it is difficult for students to fund their own education if they plan ahead and work hard in high school they will be eligible for grants and loans, financial aid, scholarships and other assistance that can greatly reduce the amount of that parents have to pay toward their child’s education.

Parents can plan ahead as well. No matter where you live there are numerous college savings plans that parents can take advantage of as early in the child’s life as possible to help them be prepared to contribute toward their child’s college education. A good college fund can really relieve a lot of stress of college expenses.

If both parent and child work together and begin planning early there is much that can be done to reduce the stress of paying for college. Develop a savings plan early in your child’s life and train them to be conscience of ways to help out, working part time, saving money and working hard to get good grades in school. All of this will make things much easier when that first tuition check comes due.

In today’s online world, you can do your banking, trade stocks, pay your bills, and even buy groceries on the Internet. This convenience can come with a price, though, with identity theft becoming one of the biggest concerns and fastest-growing crimes today. Being proactive with your data privacy is important and can keep you from getting zinged.

The Privacy Rights Clearinghouse says that 9.3 million Americans fell victim to identity theft in 2005 and while new laws and agencies have been created to fight it, it’s still a concern and poses a serious threat to today’s consumer.

Many companies now offer identity theft protection services. While paying a company to protect your identity for you can be very effective, there are things you can do on your own to greatly minimize your risk.

Here are some tips to help you keep your information secure:

Make purchases only on trusted sites.

Sites that you don’t know, aren’t familiar with, or seem in any way to be hokey should be avoided. Make online payments (via credit card, direct check, etc.) only on sites you know and trust. Many small online retailers don’t have secure payment systems, so be wary of any system you are unfamiliar with. Utilize accepted payment methods that don’t compromise your identity such as PayPal or Google Checkout.

Order and go over your credit report.

You can request and receive one free credit report a year from each of the three credit agencies. Do this every year and go over that report carefully, looking for discrepancies. The website AnnualCreditReport.com was created by the three reporting agencies in response to a federal law passed in 2003 on this issue. Check to make sure no accounts of which you are unaware have been opened in your name. Also watch for unusual activity such as address changes or other items you didn’t authorize.

Know what phishing is and how to respond to it.

This technique, used by identity thieves that usually targets a specific site like eBay.com or Amazon.com pretends to be a site that you trust to get you to log into their system so they can capture your login information for the real site. Often these are perpetrated via email. One effective theft protection method is making it a habit never to click on links within email to visit sites you must log into, but instead to type the site’s name in manually into your browser to be sure you’re going where you think you’re going. Watch your browser’s location bar (URL) to make sure you’re on the site you want to be on and not a fake.

Secure your home network.

If you have a wireless network at home, make sure it’s secure. Most of the wireless networking kits you purchase today have security built in, but you have to activate it if you want it to work. Often, this is done for you on setup, but make sure it is there regardless. In the past, many have had their identities, financial information stored on their computer, and more stolen by thieves who merely wandered by their house with a laptop and hopped onto their unsecured network. Look to your network’s setup disk or documentation to find out how to secure it.

Don’t enter sensitive information into non-secure websites.

If the site you’re on is one you trust to give your information, make sure it’s also securing it. Likewise, if you’re posting information on Myspace, a blog, Facebook, or anywhere else, make sure it’s not identifiable for use with your credit. Your mother’s maiden name, your passwords, and other detailed information about you should be kept to yourself and not broadcast to the world, as these items can be used to get access to your identity. Many famous people have found themselves in sticky situations because so much is known about them that they can’t keep their information secured.

Set banking alerts.

Many banks offer a service that allows you to have them notify you via email or text message when your accounts have certain things happen: getting close to overdraft, having draft or purchase requests for more than $1,000, etc. Take advantage of these to keep informed the moment something strange happens on your account.

Use optimal security questions and passwords.

A very common mistake amongst users is to use the same password on several sites. This might be OK if the site is just a news or blog comment area, but for financial and personal information, it’s very bad policy. Use secure passwords that are hard to guess and that contain both letters, numbers, and random capitalization. Make sure your security questions aren’t easily answered by someone who knows something about you. Questions that even your spouse would have a hard time answering are the goal.

In short, take your protection from identity theft seriously and make sure you aren’t taken advantage of by identity thieves. Identity theft affects your whole life and can ruin you financially and make your life miserable. Preventing it is a matter of a few precautions and vigilance, but is worth it.

In an ideal world we would all be able to handle our expenses with no help from anyone. We would only have the amount of debt that we could easily pay back. Unfortunately, we do not live in an ideal world and when the unexpected happens sometimes we end up in over our heads financially.

When that happens one avenue of relief is to consolidate your debt. There are many ways that this can be done such as balance transfers from many high interest credit cards to one low rate card or a debt consolidation loan or second mortgage. Another option to seek help from a debt consolidation agency.

What can Credit Counselors Do?

A credit counselor will review the debtor’s situation and propose a payment plan that is reasonable for debtor and acceptable for the creditor. The debtor pays a monthly payment to the agency and the creditors receive their agreed upon amounts from the agency.

Put the Experts to Work for You

If you’re unable to negotiate lower rates and payments with creditors on your own, a credit counselor can usually do it for you. This will save you money and help you get your debt paid off more quickly. The credit counselor can also help you write a budget to help you stick to the payment plan while still being able to afford all of your other expenses.

Not Always a Win Win Situation

There are some obstacles that may be hard to overcome. While credit counselors work hard to negotiate with your creditors they are not miracle workers. The creditors expect to be repaid and they are only going to compromise to a point. If you are really in way over your head the negotiated figures may still be a lot more than you can handle. If that is the case debt consolidation will not work for you.

Another thing about credit counseling is that it isn’t free. Credit counseling agencies may charge monthly fees for their services, adding them on to your monthly payment. If they don’t, they have to get the money to pay their employees somewhere. That “somewhere” is usually from your debtors, as a percentage of your payment.

There is some debate as to how going through credit counseling affects your credit. It is noted on your credit report. In most cases, you can’t get new credit until you complete the program. But it could also affect you after your debts are paid off. Many lenders consider credit counseling as being similar to Chapter 13 bankruptcy.

Having a clean credit report in this real estate market is important. Now that the credit market has gotten tight, your FICO score may be more important than ever. Now, we will examine how you can raise your FICO score the best way.

If you want to improve FICO score, you must get charge offs removed from your credit report. Charge offs can have a very nasty effect on a credit score. You do not want them on your report. If you presently happen to have them, you can do a few things to get them off. This will improve your credit score and will lower your payments and interest on loans and mortgages.

The order of geting charge offs removed starts with obtaining a copy of your credit report. Every calendar year, you get 1 copy of your credit report. This allows you to see what your credit report says.

It’s not uncommon to see a mistake on your credit report. As soon as you see one, write a letter to the credit bureau. Don’t use email, compose a real letter. An old fashioned one, with ink and a stamp. If you don’t receive word from the credit bureau within a month, the charge is automatically dropped from your report. Another increase in your FICO score!

This may seem like a baby step, but baby steps matter in the process of raising your credit score. Just a small difference in interest for a mortgage can save you thousands of dollars over the course of a couple of years. So be almost microscopic when going over the report.

Most people never go over their credit reports. They assume that no charge offs are made in error. In reality, credit bureaus make a lot of mistakes. You can get the errors off your credit report and increase your score. You just have review your credit report, see if there are any mistakes on there and send a letter to the credit bureaus. This alone can save you thousands of dollars in the next few years.

If you are no new comer in the credit industry, you may have heard about debt consolidation. But what does this mean? In a nut shell, debt consolidation involves a debtor merging various loans from different institution.

The consolidation of debts is done in hopes of a number of advantages for the creditor. First of all, with only one institution to deal with, the person with a lot of credit will have the convenience of interacting with this sole financier, not needing to run around town to pay off separate debts.

Debt consolidation isn’t as simple as getting a loan, either. The tricky part is getting a loan with a low enough interest rate to make it worth your time to consolidate your debt. Most debt counseling companies offer lower interest rates than a credit card, because most will want some form of collateral up front to take on the loan in the first place.

Debt consolidation certainly isn’t for everyone, but it is one of the most effective ways to get out of debt. Remember, you don’t necessarily have to higher a debt consolidation company to fix your debt issues, you can do most of this yourself.

Above all, the highest advantage of a debt consolidation may be the fact that you are given the peace of mind that all of your numerous previous loans are now paid and you only have to think about one chunk of a loan to pay off. You are no longer in danger of forgetting a loan and missing your repayment dates, thereby further increasing the amount you are due on your next payment and bogging down your credit score further.

Make sure you are getting the lowest rates on your credit and debt consolidation, and inspect the paperwork carefully.

Is your current credit situation making you consider filing for bankruptcy? Filing bankruptcy is a “last-resort” option for people who are experiencing extreme problems paying their bills.

Frequently, someone who files for bankruptcy has many bad credit marks on their credit report. They often have been rejected for credit recently, have creditors calling them and have multiple bills which they pay late or not at all.

Often there will be a home or vehicle which has been repossessed, or under the threat of repossession.

If you are experiencing debt problems such as these, then surely you are looking for relief. Not being able to pay your bills is stressful and truly exhausting.

If you are considering bankruptcy, it is critical that you learn the permanent consequences of a bankruptcy.

Bankruptcy laws were made with you in mind. When you file for bankruptcy, most or all of your debts will be closed.

This happens after your assets are divided amongst your creditors. This is possible, through bankruptcy, even if your assets don’t pay all your debts.

This procedure is called liquidation, or Chapter Seven (7) bankruptcy. Chapter 7 bankruptcy is the most common type. A “trustee” takes care of all the administrative and supervisory duties of the proceedings.

Chapter 11, 12, or 13 Bankruptcy provide rehab to your business, and choice of using future earnings to pay lenders. Once you begin the bankruptcy proceedings, creditors can no longer collect on your debts.

Also, you will not be able to transfer any assets that are part of the estate (so, forget about hiding your savings account or gold coin collection with a trusted relative or friend!) Further, transferring ownership of assets prior to filing bankruptcy typically does not work, and many are invalidated.

Recently, the U.S. Supreme Court ruled that retirement accounts do not have to be included in your assets that are liquidated.

Regardless of which bankruptcy you choose, it will likely be on your credit reports for 7 or 10 years. Filing for bankruptcy frees you from your existing lenders, but not from any future lenders.

If you do file bankruptcy, it will narrow your choices. High credit is possible to restore, but it will take some time and patience.

Some things to remember:

1. Any derogatory credit item can potentially be removed from your credit report.

2. New, current good credit lines will make your score improve.

3. Old, derogatory credit falling off your report will also boost your score over time.

4. You must monitor your credit reports regularly – and dispute questionable derogatory marks such as charge offs, collection items, and late payments.

Does debt management mean digging yourself out of a hole? Definitely not. Debt management is something that all of us should do. It means budgeting ourselves so that we avoid taking on more debt than we can reasonably handle.

Debt management simply means keeping debts down to a level where they do not present a problem. Those who have managed debt successfully can usually pay off credit card balances each month, and they often put extra money toward loans to pay them off more quickly. They do not take on more debt than they can handle, so they have no trouble paying it back.

A Few Helpful Hints

* When going into debt for a necessity like a house or car, shop around for the best interest rates. This will keep your monthly payments lower. But that doesn’t mean that you can’t put extra money toward the payment each month and pay the loan off ahead of schedule.

- Remember that credit card companies are competing for your businesses so that have many incentives and offers that you should avail yourself of. Accept only the credit cards with the lowest interest rate that is available to you.

- Avoid falling into the trap of dozens of credit cards. You don’t need a credit card for every store you shop in. Really if you have more than 2 cards you probably have too many.

* Refrain from getting cash advances. These usually carry a higher interest rate than regular purchases. If you need cash in an emergency and must get an advance, paying it back as quickly as possible will minimize the charges.

When debt gets out of hand

Be aware of your financial situation and don’t let overwhelming debt sneak up on you. So many people feel that they have a good handle on things and by the time they realize that they have lost control they find themselves buried. Be conscience at all times of your financial situation and your level of debt.

When you are in debt over your head and you know there is no way out on your own you may be need to think about trying to reach a settlement with your creditors. Your situation is not unique. Most people have found themselves with financial difficulties at some point and sometimes settlement is the best option. Debt settlement is a serious step, however, and should be carefully understood and considered.

Once a debt is past due it begins to grow at a rapid pace. This is because of the many late fees, over limit charges and other penalties that are charged to the account each month. If you have not been able to reach an agreement with your creditors you may need outside help.

Debt settlement puts you in touch with an agency that specializes in helping individuals deal with serious debts. Debt settlement agencies will review your situation to see if you qualify. Debt settlements are mainly done for unsecured debt.

An unsecured debt is one that is not backed by any collateral. It is a greater risk for the creditor because they extend credit to you with nothing to fall back on except your promise to pay. Credit cards are the most common unsecured debts.

Creditors have the right to report your debt settlement to credit reporting agencies. This means that a debt settlement will have an impact on your credit scores. These affects could be somewhat long term so you want to consider this before moving forward with debt settlement.

Once your case has been accepted, the debt settlement agent will look at several factors to determine a repayment plan for the debt. The amount of the debt is important. It needs to be beyond your ability to repay without some intervention.

Interest rates and late fees will be considered first. The settlement agent will see if he can negotiate a reduction of interest charges or the forgiveness of certain fees or penalties to help you focus on repaying the principal amount of the debt.

Once you have enlisted the services of a debt settlement agent all of you dealings will be with that company and you will no longer deal directly with your creditors. You will pay a determined amount to the settlement agent each month and that amount will be distributed by him to your creditors according to the agreements reached.

It is not unusual for a person to be shouldering much more debt then he actually can handle. Most people have a sizeable amount of debt that they deal with each month and for some it eventually gets out of hand and impossible to maintain. For those people credit counseling can offer some assistance. What can a credit counselor do for you?

A credit counselor has multiple roles. First they will analyze your situation to see what can be done to help you recover from the debt you are in. After their analysis they will create repayment strategy. In addition, they will help you learn how to avoid future financial problems.

Your credit counselor is interested in helping you get back on your feet financially. They work for you. However, one of their goals is to get your creditors paid as much of the money owed to them that they possibly can. With both objectives in mind and after reviewing your situation they can develop a budget for you.

When setting up a budget for you they take into consideration your other living expenses and calculate how much you can afford to pay each month to your creditors.

These counselors have established a rapport with many creditors and know what they will and will not accept concerning payment arrangements. As much as fifty percent or more of your outstanding debt could be forgiven.

If your counselor is certified this means that he has a financial background and keeps up his certification through continuing education and training. This is all to your benefit. You have someone working for you who has experience in knowledge in the field and can pass that on to you.

Credit counselors will offer information on credit repair. They advise clients about how to rebuild credit after they have gone through debt restructuring. They stress the importance of reviewing and understanding a credit report. Most importantly, they discuss how to manage money wisely so that debt is not a way of life, but something to be avoided in the future.

With the information and tools given to you by you credit counselor you can begin to rebuild your credit right away. They will give you all the instruction you need to turn your credit around.