Scam Alert: Credit Report

The Concern: Trying to buy a home? Get a new job? Take out a loan? Then you care about your credit score. Scammers know this, and they are using related scare tactics to get consumers to give up sensitive personal information.  HOW THE SCAMS WORKS:  You receive an email from a top credit reporting company (such as TransUnion, Experian, or Equifax) asserting there is a problem with your credit report. The email contains the logos of the companies it claims to represent and looks legitimate. The email says there is a problem with your credit score, perhaps due to a security breach, and your score has been updated.  You want to find out what happened! The email prompts you to click a link or download a PDF to view your new credit score. When you click, you could unknowingly download malware to your computer, giving scammers access to your system.  HOW TO AVOID CREDIT SCORE SCAMS: (1) Be suspicious of unsolicited emails. If you think the correspondence is real, confirm it by visiting the company’s official website or calling them. Just be sure to find the phone number on their website, not in the potential scam email. (2) Don’t click on links when you are not sure of the sender. Never click on links in suspicious emails or text messages. (3) Never give in to fear. Scammers want you to panic and take immediate action. Stay vigilant, ask questions, and do your research before making a decision.  (4) Review your credit report.  Order your free credit report once a year from each of the three major reporting agencies or from www.AnnualCreditReport.com .or by calling (877) 322-8228. Review your report to be certain it doesn’t include accounts that you have not opened.

Posted in Scam Alerts

Holiday Buying Guide

It’s that time of year! Hold on tight because the holiday shopping season is well under way.  Here’s a guide to help you make the most of it.   Do your research. Find businesses you can trust on BBB.org. The BBB has Business Profiles on more than 5.2 million businesses, from the most popular chains to local shops. Read past customers’ experiences and see how the business responds to complaints. Look for the seal to find BBB Accredited Businesses. Shop around. Not all of the best sales or the best prices are in the big box stores. Thousands of small and independent businesses participate in “small business” sale days.  Look for the “Shop Small” signs at local businesses for Small Business Saturday specials or visit shopsmall.com for a list of participating retailers. Be safe online.  Cyber Savings days unlock big savings online, but look for a small lock icon in the URL and an extra “s” for safety (https… the extra “s” is for secure). Watch out for look-alike websites that mimic famous brands but that may be a scam. Use a credit card for online shopping, as it has more fraud protections than a debit card. Make sure your anti-virus software is up-to-date and avoid clicking on links in unsolicited email and social media messages. Give wisely. Charitable giving is always high at the holidays when donors are feeling generous. Make sure the charity you select will be a good steward of your money. Check out BBB’s Give.org for charity reviews. Check out this link: 12 Tips to a Safe and Fun Holiday Season! (Email: b.louder@good-steward.org)

Posted in Buying and Selling

Beware Of Debt Collectors Looking To “Re-Age” Your Old Debt

The Fair Credit Reporting Act (FCRA) sets very strict guidelines regarding how long damaging information is allowed to remain on your credit reports. This is designed to help consumers who have made credit mistakes in the past, but also opens up the door for creditors to take advantage of a process known as “re-aging” a debt. 

Consumers may not be aware, but most negative items reported on your credit score have a statute of limitations for how long they can remain on your credit reporting. Some creditors rely on consumers not knowing this and will purchase old debts and attempt to “re-age” them.

What Is Debt Re-Aging?
Debt re-aging is a complicated industry term that can have several applications but for the purposes of this article, debt re-aging is simply when a creditor attempts to revive and collect on an old debt.

In most cases, negative information on your credit report is required to be purged from all of your credit reports after a certain period of time. The mistake most people make is engaging with creditors who are looking to re-age a debt and in turn, reset the clock on when their debt can age out.

Oftentimes, this is done by creditors purchasing an old debt and changing the date when the debt went bad. Other times, it relies on the consumer admitting ownership of the debt itself, well after the statute of limitations is past. Both of these practices can reset the clock on the statute of limitations on your debt and can put you back on the hook for paying back old debts.

Is Debt Re-Aging Illegal?
While the practice of debt re-aging isn’t always illegal, many debt collectors use the practice in an unethical fashion. They rely on the consumer to admit ownership of old debt, so they can “re-age” the debt and reset the statute of limitations on collecting the money that is owed.

Consumers should be very careful about what they say if contacted by a debt collector about an old debt. Debt collectors looking to re-age old debt often rely on consumers to say or sign something acknowledging of the validity of the debt. If you do this, even after the statute of limitations on that debt has expired, then you may have revived, waived, or extended the statute of limitations and will now be on the hook for repaying it.

How Can I Avoid Debt Re-Aging?

Know the Statute(s) of Limitations
The statutes of limitations vary from state to state but information about how long your debt is valid for can be found online. If a creditor is contacting you about an old debt, the first step is to check that you can still be legally held responsible for it.

Do Not Claim Ownership of the Debt
Claiming to have knowledge or ownership of an old debt is the quickest way to have your debt re-aged. In most cases, it is in your best interest to say nothing to a creditor looking to collect on a debt that is past the statute of limitations. If a creditor plans on moving forward with attempting to collect anyhow, they are required to contact you with their next steps. Oftentimes however, creditors will drop the issue if they cannot confirm ownership of the aged-out debt and re-age it. 

Watch Your Credit Report
Unethical creditors will often report old debt as new in an attempt to scare consumers into making payments. This is illegal and could be seen as a violation of the Fair Credit Reporting Act (FCRA) and should be reported.

Write A Credit Dispute Letter
If a creditor is coming after you for a debt that has aged out or is claiming an old debt is new, you should send a credit dispute letter in response. A credit dispute letter is a letter sent to the credit bureaus disputing damaging information on your credit report. Once the letter is submitted, it is up to the creditor to prove the debt they are attempting to collect on is valid.

Posted in Scam Alerts

Invest or Pay Off Mortgage?

Question:  I’m in my mid-50s and can free about $100 a month to put toward retirement.  Would I be better off to invest it in an IRA or use it to pay off my home mortgage early?  I also have a good company retirement plan that will provide half of my salary when I retire.  Response:  First of all, be very thankful for your retirement plan at work—such plans are few and far between these days.  Now, assuming that you have adequate savings for current budget needs, I would always recommend you apply any extra cash to your mortgage.  Then when your mortgage is paid off, use some or all of your previous mortgage payment to invest.  That way you own your home, no matter what, and your retirement income needs will decrease by the amount of your old mortgage payments.  However, if you can’t eliminate the mortgage before retirement, and/or you plan to sell your home after retiring, it may make more sense not to pay off your existing mortgage (note: If your mortgage is an older fixed rate, assumable loan, it can be a real asset in attracting a potential buyer).

Posted in Investing

Time To Begin Investing?

Question: My wife and I would like to begin investing, but we find it hard to generate the money to do so.  Can you help us?  Response:  I suggest you get in contact with either the Dave Ramsey organization (www.daveramsey.org) or Crown Financial Ministries (www.crown.org). When you do you will discover that it’s best for you to (1) Establish and live on a budget. (2) Establish an emergency fund in cash at a local bank. (3) Be debt free except for your home.  Only then should you consider investing and only if you find a credible investment counselor who is willing to teach you how to invest, not just invest your money for you.

Posted in Investing

Should You Give Cash to Help a Friend?

Question:  I have a Christian friend in need, but if I give him money, I’m quite sure he will misspend it.  Should I direct how the money can be spent?  Would I be better off giving or lending it to him?  Response:  It’s great that you have the heart to help your friend!  Here are some thoughts for you to prayerfully consider.  (1) Help him get some financial coaching.  I suggest either from the Dave Ramsey organization (www.daveramsey.com) or Crown Financial Ministries (www.crowwn.org) .  (2)  Once he gets a clear picture of his finances—a budget—consider helping him NOT by giving him cash to help pay his bills, but by paying one/some of his bills for him (write a check to the electric company, etc.).  (3) Remember, the Bible says that the borrower is servant to the lender (Proverbs. 22:7).  My experience is that if you lend your friend money it will change your relationship and you often lose your friend, the capacity to help your friend, and the money you lent your friend.   Generally speaking I would not lend him money.

Posted in Giving

Variable Income Budget?

Question:  I’m having a hard time finding a full-time job to support my family.  So I’m working part time in sales and anything else I can find.  As a result my income fluctuates from month to month.  In fact, some months I receive practically no income at all.  Can a budget help me?  Response:  Everyone needs a budget which is simply a tool to help you learn to live on less that you make.  Families with variable incomes need budgets just as much if not more than families on fixed salaries.  Many families with low variable incomes often get trapped into debt because they borrow (credit card) during the lean months and spend what they make during higher income months rather than repay what they borrowed.  I might add that families with higher variable incomes (construction and seasonal workers, etc.) often suffer in the same way.  To properly budget a variable income, you must determine what your average annual income is, divide that by twelve, and then develop your budget around that amount.  You should put all your income into a savings account and draw your average monthly salary from that, thus averaging out the months of high and low income.  I would also point you back to the principle found in Proverbs 27:12: “The prudent see danger and take refuge but the simple keep going and pay the penalty.”

Posted in Budgeting

Working Wife

Question: I really want to be home with my children, but my husband wants me to work because he feels we need the money.  I’m almost afraid not to work because we’re barely getting by.  Your  thoughts?  Response:  Here are some thoughts to prayerfully consider.  (1) Many women with pre-school-age children are working for virtually nothing.  By the time you calculate transportation, clothes, child care, eating out, etc., the wife must have a net annual income of about $18,000 to $22,000 a year just to break even.  (2) If your husband insists that you work, clearly and kindly share and explain your objection; then respect his authority and do as he asks.  However, if the decision to have you work is motivated by the desire to maintain a certain life-style, then you should know that more than likely within a year, you and your husband will tend to find yourselves dissatisfied with your life-style once again.  (3) The real issue is to learn to be content with your present life-style/get help to learn to live on less than you make.  ^“I am not saying this because I am in need, for I have learned to be content whatever the circumstances” (Philippians 4:11).

Posted in Husbands and Wives

Worry About the Future?

Question: I find that as I get older, I worry more and more about the future. I’m worried about how I could earn a living if I lost my job and what will happen if I can’t afford to retire.  It seems to me that I’m paralyzed by fear of the future.  I know it’s wrong, but how can I change?  Response:  It’s been correctly said that worry is taking on the responsibility that belongs to God, and that includes being preoccupied with the future.  The Lord said, “So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them” (Matthew 6:31-32).  Worry about your future and about your finances is not your problem; it’s a symptom—it’s an outside indicator of an inside spiritual problem.  Most of our worries are based on future possible problems, not current circumstance.  It’s the “what if’s” that cause us the most grief.  Most people can handle the current situation, even a bad one, but they go into depression when they think about the future.  So, how might you begin to handle worry? Stop, confess that you have assumed God’s responsibility, and turn that area of your life over to Him.  Then take responsibility for whatever you can do something about.  For example, rework your budget, or have an open dialogue with your spouse about finances, etc.

Posted in Faith

Is Retirement Scriptural?

Question: I’m in my early thirties, married, and have two children. So I guess I’m one of the average Americans. My company allows me to invest five percent of my salary in a retirement plan, and it matches the funds. I know it’s a good deal, and we can afford it, but is retirement scriptural? If not, how did we get so caught up in it?  Response: First, great decision to invest in a retirement plan at work.  Now to your retirement question. The only place in the Bible that mentions anything like retirement is found in Numbers 8:24-25. God tells Moses that the Levites–the priests who were charged with serving God by doing much of the hard work in and around the Tent of Meeting (later the Tabernacle) to include moving the Tent of Meeting from place to place—were allowed to begin their work at age twenty-five and work until the mandatory retirement age of fifty. However, these retired priests did not pack their bags and spend the rest of their lives on the beaches and golf courses in and around Tel Aviv!  They were expected to take on the role of assisting the younger men in performing their work. Basically, when they retired, they were no longer to “work,” but rather “help” the non-retired guys do their job. The older men were expected to mentor the younger men in their trade by providing the wisdom and leadership that came from twenty-five years of experience in serving the Lord. Now, what might this mean for your retirement and mine?  Some must work in order to live–so be it.  For those who no longer must work, it means that retirement is not a time to just play golf all day long and add nothing to society (and no, getting a hole-in-one does not count as adding to society). In fact, retirement is probably the first time in decades when you do not have 40+ hours of your week already committed. That is a lot of extra time to “attend to the needs” of others around you. Just because you’re not getting a salary anymore doesn’t mean you can’t do extremely valuable and fulfilling work that honors God and helps other people. Volunteer more at your church, lead a committee, get involved with your community, help those who are less fortunate, take part in the political process or community activism, or just meet and care for people–you’ll still have plenty of time for the beach and the golf course!

Posted in Retirement