Month: November 2018

Cars & Credit: How Your Credit Impacts Car-Buying

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Purchasing a car can help boost your credit score if you consistently make on-time impact of credit on car buying speedometer type image showing scredit scorespayments. On the other hand, you need fair or better credit to qualify for a car loan.

How can you get the loan you need, then, if your credit is not ideal?

It helps to understand just how important credit is to obtain a car loan and what steps you can take to increase your ability to do so.

Factors Impacting Your Ability To Buy A Car

If you wish to buy a vehicle using a loan, you need to prove to the lender that you are a good credit risk.

In every situation, the lender needs to weigh just how much risk a borrower is based on how likely they are to repay the debt in full. Borrowers who are a very high risk may not qualify for the loan. On the other hand, borrowers that are a lower risk may qualify for a lower interest rate.

When vehicle lenders consider you for an auto loan, they are thinking about the following:

  • What do you want to buy – is it worth how much you want to pay for it?
  • Do you have previous borrowing experience that shows you are a reliable borrower?
  • Do you have the financial means to repay your debt on a monthly basis along with any other debt you have?

It is up to you, then, to show lenders your goals are achievable. Even if you have never obtained a vehicle loan in the past, working with a credit union or other lender is possible if you can show you are a good risk.

Type of vehicle

First, consider the vehicle itself. How does the vehicle play a role in whether or not a lender will give you a loan?

Car loans are secured loans in most cases. If you stop making payments on the loan, the lender will force the sale or repossession of the car. This offers the lender a bit of a safety net. They can sell the car to recoup at least some of the cost of the loan.

For this reason, car loans tend to be a bit easier to qualify for than an unsecured loan, such as a personal loan.

The lender must learn about the actual value of the car. They use a number of tools to determine this including an appraisal of the vehicle. It does not matter what the dealership wants you to pay for the car. The vehicle must be worth that much from a third-party appraisal service.

If the vehicle is worth the amount you wish to buy it for, the lender may approve the loan for you.

Credit history

The next step is determining if you qualify for a car loan based on your previous borrowing history.

The best way for a lender to know this is to pull a copy of your credit history. This includes all of the accounts you have had in the past. It covers previous car loans, credit cards, any judgments against you, and mortgages. Most lenders use a credit score to determine your qualifications. A score is simply a mathematical representation of your borrowing history.

Poor or no credit history?

Some people have no credit history. Others have a poor record of making payments on time.

If you find that your credit score is limiting your chances of obtaining a loan, there are several things you can do…

  • Make on-time payments on all current debts. Doing this for several months increases your dependability. Avoid being late on payments.
  • If you have no credit history, consider a secured credit card or a low-fee credit card. Most credit unions and credit card companies offer these to those who have employment.
  • Consider paying down some of your debt. The lower your debt to credit limit ratio, the better.
  • Don’t apply for too many credit cards or loans in a short period of time. Aim for no more than one or two every few months to a year.
  • Get a co-signer for your loan. A person who has a good credit score can help you qualify for a loan. And, in the long term, this can boost your credit score as well.

Gradually work on improving your credit score over time. When you do so, you eliminate the lender’s concerns that your past borrowing habits will translate into a new loan.

Employment status

Finally, a lender needs to know you have the income necessary to make payments on the vehicle. Even if your credit is fantastic, if you do not have a way to prove to the lender that you have income, then the lender is unlikely to offer you a loan.

More specifically, the lender is looking at your debt to income ratio. How many expenses do you have compared to how much income you have coming in? The lower this total, the more likely you are to have the cash on hand to make payments.

If you do not have steady employment, you may wish to work on this as a first step. Be sure you can prove to your lender that your employment is reliable, too. Paycheck stubs can assist in showing steady employment.

The Role Credit Plays In Car Buying

Each one of these factors plays a role in your ability to obtain a new car loan.

Other factors can do so as well. The interest rate, whether or not you have a down payment, and even if you are buying a new or used car can impact the lender’s decision. Yet, beyond anything else, it comes down to your ability to make payments on a timely basis.

If you are unsure whether you qualify for a car loan, work with your local credit union. They know you and are more likely to lend to you than traditional banks. These loans may even be more affordable than those obtained from other sources.

Learn more about auto loans at Destinations Credit Union.

How Should I Fund My Holiday Shopping?

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Q: I’ve made my gift list and I’m checking it twice. But, I’m getting a bit panicky just Two women looking in window holiday shoppingthinking about how I’m going to pay for all this stuff! What’s the best way to get me through this expensive season?

A: Relax! You can keep your budget and your sanity, too! You can do it without having to dip into your savings or rack up a high-interest credit card bill that you’ll be paying off well into 2019. Instead, learn about your choices so you can spend responsibly and keep your holiday cheer all through the season..

Let’s explore your options and take a look at why they may or may not be right for you.

1.) No-interest credit cards

It’s never a good idea to rack up debt. However, if you can get your hands on a credit card that offers an initial no-interest period, you can borrow the money to fund those purchases without it costing you a penny in interest.

Nice: This can be a perfect solution for you if you have an excellent credit score and concrete plans to pay back the bill before the zero interest period ends.

Naughty: Don’t go this route if you have a poor track record of paying down your credit card bills. You might end up carrying that balance well after the intro period ends. You’ll then be hit with super-high interest rates that will make your holiday expenses go much higher.

2.) Personal loans

Anytime you need a pile of dough, you can stop by Destinations Credit Union to apply for a Holiday Loan. Our representatives are always happy to help, and you can walk out with the money you need to fund your holiday shopping shortly after starting your application.

Nice: Like all of our lending products, our personal loans have low interest rates, which makes the payback plan affordable for almost any budget.

Naughty: If you’re already carrying a load of debt and unpaid loans, don’t take out another one just to get you through the holidays. Consider lower cost gift ideas and focus on paying off debt.

3.) Skip-a-Payment

Here at Destinations Credit Union, we understand that the holidays can be super expensive for our members. That’s why we offer you our own gift this time of year: the option to skip a monthly loan or credit card payment to give you that extra cash flow. It’s more breathing room in your budget, just when you need it most! We skip the November loan payment to give you more shopping time, so it’s already passed for this year.

Nice: When you choose Skip-a-Payment, you’ll be able to pay for those presents without adding to your credit card balance or taking on new debt. No high-interest bills to haunt you through the first part of 2019!

Naughty: When you choose to skip a monthly loan payment, you are essentially moving that payment to the end of the loan’s life. Every Skip-a-Payment will make the loan’s term one month longer. Consider this: If you skip just one payment a year on an auto loan, the loan will be around five months longer than you’d originally anticipated (for a five year loan).

4.) Holiday Club Account

Don’t wait until Black Friday to start thinking about your holiday shopping. Pay a little bit toward this expensive season all year long by opening a Holiday Club Account. This way, when November rolls around, you’ll actually look forward to buying all those gifts instead of dreading it. Put the cheer back in your holiday season by opening a Holiday Club Account today!

Nice: Holiday Club Accounts offer you a way to pay for your holiday shopping ahead of the season, instead of playing catch-up on your bills in the coming months. It’s the perfect way to take the stress out of the holidays!

Naughty: If you want to open a Holiday Club Account to help you make it through this season, you’re a little late. But, it’s never too early to start thinking about next year!

5.) Deferred-interest financing

If you’re buying several large purchases at big-box stores, consider signing up for the retailers’ deferred-interest financing. Many chain stores offer customers this interest-free financing option so they can walk out with their purchase today, and pay for it tomorrow.

Nice: Deferred-interest financing works just like an interest-free line of credit, only it’s exclusive to the store selling the item. If you don’t like the idea of opening another credit card but you need that interest-free option, this can be the perfect solution for you.

Naughty: If you neglect to pay off your bill before the interest-free period expires, you’ll be slapped with sky-high interest fees. Worse yet, you’ll have to pay interest retroactively for the entire interest-free period.

If you’re still struggling to get through the holiday season, we can help! Stop by Destinations Credit Union today. We’ll show you how to stay in the black when your holiday expenses have you seeing red.

Your Turn: How do you pay for your holiday expenses? Share your method of choice and tell us why it works for you in the comments below.

SOURCES:
https://www.thebalance.com/pay-for-big-holiday-purchases-interest-free-4154866
https://www.wsj.com/articles/SB10001424052748704782304574541873369727460
https://www.google.com/amp/s/www.thestreet.com/amp/story/12808150/1/how-pay-your-holiday-shopping.html

5 Holiday Mistakes That Could Cost You

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This article is courtesy of Darlene Aderoju who works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support Americans to save money, reduce debt, and build wealth. Learn more at AmericaSaves.org.

The holidays are just around the corner, which means it’s time to enjoy vacations, catch

woman in santa hat with scary face and an armful of gifts

.

up with family and old friends, and eat great food. While the holidays are about quality time and making memories, it’s easy to get caught up with spending money. Here are five holiday mistakes to avoid this year so you can enjoy the season with your finances intact:

You’re shopping without a budget or list.

It’s incredibly kind to get each of your relatives, colleagues, and in-laws thoughtful presents and cards to show them your appreciation, but your wallet might be crying for help after your first few purchases. One of the biggest financial mistakes you can make during the holidays is shopping without a spending plan.

When you’re shopping for loved ones, you’re imagining how happy they’ll be when they receive your gift. But remember, financial responsibilities don’t go on vacation during the holidays. Create a budget for your holiday spending. Once you know how much you can afford to spend, create a list that fits your budget.

This way, you’ll be able to purchase the items you plan for and know for sure that you didn’t bust your budget. Here’s a free holiday budget printable to get you started.

You’re volunteering your home, food, and car to everyone.

If you’re the person that always offers food, transportation, and lodging to everyone, you might want to try a new approach this year. It’s thoughtful to go the extra mile during the holidays, but don’t stretch yourself or your pockets too thin.

Consider splitting the responsibilities with your friends and family. You might not think you’re overspending by being so accommodating, but the more people there are in your home, the more likely you are to receive a high utility bill at the end of the month. You’ll also be surprised at how many trips you might have to make to the grocery store to restock on food, drinks, and toiletries.

You can suggest hosting a potluck style gathering this year. With a potluck, each guest is responsible for bringing at least one dish, beverage, or party supply. At a minimum, you’ll save money on food and drinks. If you need napkins or disposable utensils and plates, you can make one guest responsible for those items as well.

If you have a ton of relatives who need to be picked up from the airport or train station, see if you can rope in other family members to help with pick-ups and drop-offs. This will help you save on gas, time, and energy.

Splitting responsibilities will help you enjoy the holidays without being completely stressed out.

You’re shopping too late.

So you’ve created your list and a tight budget, that’s great! Don’t wait until the last minute to actually make your purchases. By then, sales may be over and supplies will be limited.

Start your shopping early so you can snag deals while they’re still available. When you have ample time to cross items off your list, you’ll have time to compare prices and bargain hunt. Some stores offer price matching, so keep that in mind as you start shopping and placing your online orders.

Time is of the essence. Shopping early will give you time to figure out what you actually need and get those items at the best price. When you wait until the last minute, you’re much more likely to bust your budget because you’ll just be rushing to cross people off your list instead of specific items that fall within your budget. Here are some tips to help you save while you shop.

You’re relying on your credit cards.

Do your best NOT to rely on your credit cards during the holidays. If you can’t afford to buy it now, don’t create a bill for yourself later. Once the holidays are over, you’ll be faced with a potential mountain of debt that you’ve built.

The holidays are a great time to enjoy the company of your loved ones, but you shouldn’t feel like the only way to show your love is through expensive presents and festive decor. Enjoy the holidays in a way that doesn’t destroy your finances. This year, make it a goal to spend quality time.

If an unplanned expense does occur during the holidays and you have to use your credit, here are some tips for using your credit card.

You’re trying to keep up with the Joneses.

Don’t make the holidays a competition about who can wear the most expensive clothes, buy the flashiest gifts, or serve the swankiest dinner. Make the holidays about creating lasting memories and enjoying time with your loved ones, or simply yourself.

Don’t Be A Victim Of A Social Security Scam

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Any of the hundreds of scams around today can make you feel like we live in a worldmature woman holding a piece of paper gone mad. How cruel can someone be to con a poor victim out of thousands of dollars?

But one of the most heartless scams making the rounds is the one targeting the elderly who depend on Social Security benefits for basic living needs. When these victims are tricked out of their benefits or their accounts are emptied, they may be left with no resources at all.

Worse yet, scammers are fully aware that the elderly make for easy victims. Many older Americans are from a bygone era in which anyone on the phone could be trusted. They haven’t grown up in a society that knows to constantly look over their shoulders and to cover their keypads when punching in a PIN. The elderly can be naïve and trusting, and it is this endearing naivety that can make them fall prey to scams.

The Federal Trade Commission (FTC) is warning of a recent surge in Social Security scams which, unfortunately, are often successful.

Here’s how these scams work:

The victim receives a phone call from an alleged Social Security employee telling them their benefits have been suspended and must be reactivated. The caller claims the suspension is due to suspicious account activity or that it happened because of a computer glitch. To lift the suspension, the scammer says, the victim must share their personal information, including full legal name, phone number, Social Security number and financial account information.

Alternatively, the victim will receive an automated voice message instructing them to call a specific number to correct a problem with their Social Security benefits. Upon calling the given phone number, the victim is asked to provide their personal information.

In yet another version of this Social Security scam, the victim receives an email that looks like it came from the Social Security Administration (SSA). The email will include a link asking the victim to update their personal information, giving a similar backstory as above.

If you receive Social Security benefits, or you know someone else who does, protect yourself and your loved ones by reviewing and educating others about these tips:

The Social Security Administration will never call about suspended benefits

There’s no reason to believe a caller who claims your benefits have been suspended. First, Social Security benefits don’t get suspended because of computer glitches. Second, the SSA will not call you to request your personal information out the blue. Government agencies rarely make phone calls to private citizens. When they do, the citizen will always know to expect that call.

Never share personal information via unsecured means

Don’t trust just anyone. It’s best not to share personal information over the phone or the internet. If you must, verify that you are interacting with the party you believe you’ve reached. The best way to do so is by contacting the SSA yourself at 1-800-772-1213. Remember, con artists are experts at looking and sounding like genuine government officials. Don’t fall for their tricks.

Report all scam attempts

Help combat these scams by reporting any attempts made to con you out of your personal information.

If you receive a phone call or an email from an alleged SSA employee requesting information, don’t respond. Instead, call the SSA at 1-800-772-1213 (TTY 1-800-325-0778), or call your local Social Security office and ask if there is actually a problem with your benefits. If, as is likely, there is no problem and you’re being scammed, the SSA will be better equipped to stop the scammers from conning more victims.

You can also call the Office of Inspector General (OIG) at 1-866-501-2101 or complete a Public Fraud Reporting form at the OIG website at socialsecurity.gov.

Finally, report the scam attempt to the FTC at ftc.gov.

Tell your friends and family

Fight back by doing your own part to stop those scammers. Tell anyone you know who receives Social Security benefits about these scams and warn them not to share their information on the phone and online.

Let’s keep our money safe and send those scammers packing!

Your Turn: Have you been targeted by a Social Security scam? Share your story with us in the comments.

SOURCES:
https://www.consumer.ftc.gov/blog/2018/09/your-social-security-number-isnt-suspended-ever
https://www.ssa.gov/phila/scams.htm
https://www.google.com/amp/s/www.fool.com/amp/retirement/2018/09/09/the-social-security-scam-that-just-wont-die.aspx

10 Reasons To Be Thankful For Your Credit Union

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We often take life’s many gifts for granted by failing to appreciate them deeply enough.man shaking woman's hand over a desk Thanksgiving offers the perfect opportunity to reflect upon everything that is wonderful in our lives and to show our gratitude for each and every gift we’ve been given.

This Thanksgiving, give thanks for your credit union! Let’s review 10 reasons to be grateful you belong to Destinations Credit Union.

Personalized member service

At Destinations Credit Union, you’re always greeted with happy faces and representatives who are ready and willing to help you. There’s no cold, sterile atmosphere here! Instead, at Destinations Credit Union, every member is part of the family. We’re truly invested in your financial wellness and we’re here to help you achieve and maintain it, every step of the way.

You have access to better savings rates

We’re not paying dividends to stockholders, and that means we have more savings to pass back to you. At Destinations Credit Union, we’re proud to offer you share certificate, high yield and savings rates that are well above the national average.

We make it easier to qualify for credit

The absence of a national bank corporate office enables us to be more flexible about extending credit. We set our own underwriting standards! That makes it easier for you to borrow, even if your existing credit isn’t perfect.

We offer lower interest rates

Need a stash of cash? Stop by Destinations Credit Union and take your pick of loans: personal loans, home loans, auto loans and more, all with reasonable interest rates that are often lower than the regional or national average. We’ll help you get the funds you need with a payback plan you can actually afford!

Your money is safe here

Federally insured credit unions and banks both offer insurance on accounts of up $250,000. But credit unions are also subject to strict regulations on their investments and loans. This means you can keep your money here without worrying about its security.

Free Checking Accounts

Our checking accounts exist to provide you with a safe, convenient place to store your money-not to milk you for it. Checking accounts at Destinations Credit Union are free to set up and maintain.  You’ll have your choice of our free no-frills checking or our high-rate rewards checking account.

Conversely, according to a MoneyRates survey, the average monthly maintenance fee for a checking account at a bank is $12. That’s nearly $150 coming out of consumers’ pockets each year!

At Destinations Credit Union you’ll have a safe place to keep your money without it costing you a bundle.*

You own a piece of your credit union

Credit unions are member-owned and member-operated. You get to weigh in on our major decisions instead of being forced to follow along with whatever the higher-ups decide. Your money=your choices.

We support small businesses

Credit unions are invested in the success of local small businesses. Here at Destinations Credit Union,  we outsource to local businesses, shop at local businesses and obtain professional services from local businesses.  We offer credit union membership to many small and large local business employees and are a proud member of the Parkville Carney Business Association.

Fewer fees

Banks are notorious for slapping consumers with fees at any given opportunity. Here at Destinations Credit Union, we want to help you keep as much of your money as possible. Any fees we do have are nominal and generally lower than what banks demand.

We also want you to have access to your money without worrying about expensive ATM fees. To that end, we provide our members with a large network of ATMs with no cost for withdrawing money.

 You have access to a variety of financial services

At Destinations Credit Union, we’re a lot more than just a gigantic piggy bank. We provide members with an array of financial services to meet every money-related need at every life stage. These include: Credit Cards with no annual fees and low interest rates, Direct Deposit, Wire Deposits, Financial Education and Counseling Services,  Holiday/Vacation Clubs, Holiday/Vacation Loans, Vehicle Loans, Notary Services, Online Banking and more!

As a member of a credit union, your money is always in good hands. Aren’t you thankful you belong to Destinations Credit Union?

*Please note, checking accounts have fees for things like check printing, overdrafts or returned checks.

Your Turn: Why are you thankful for Destinations Credit Union? Share your favorite reasons with us in the comments!  Or, rate us on Google!

SOURCES:
https://www.motionfcu.org/articles/5-advantages-of-a-credit-union-vs-a-bank
http://www.experian.com/blogs/insights/2016/10/top-10-reasons-people-love-credit-unions/
https://www.lovemycreditunion.org/why-join-a-credit-union

Gift Giving on a Budget

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This article is courtesy of Faye Griffiths-Smith of UConn Extension, a nonprofit coordinator of 

wooden boards with holiday decorations and the word Save

Connecticut Saves.

As the holiday season approaches, do you find yourself looking forward to the festivities, but concerned about the impact on your wallet? You are not alone. By doing some planning now, you can simplify your gift giving. Here are ten ways you can enjoy this special time of year and keep spending in check:

  1. Food. Consumable items are very popular during the holidays. The recipients may enjoy the product themselves or share it with others when entertaining. Consider special breads, beverages, fruit baskets, snack items, regional favorites, and gourmet coffees and teas.
  2. Go green. Find locally grown plants, flowers, and dried wreaths. Another option might be to purchase colorful washable napkins, placemats, dishcloths, reusable bags, and lunch bags with individual containers for sandwiches and snacks.
  3. Set limits. This could be done by establishing a dollar amount per gift, completing your shopping in only one or two trips, purchasing one gift per family, or committing to doing all your shopping locally.
  4. Made by you. Make your own food specialty. Knit a scarf. Hand craft an item. Create an annual holiday ornament. Give a framed photo.
  5. Hobby-related gift or gift certificates. Consider the recipient’s hobbies and interests. Are there gardeners, chefs, woodworkers, knitters, readers and gamers on your list? Gift accordingly by providing them with the tools or materials to do what they enjoy.
  6. Agree on a gift challenge. Discuss this idea well in advance of the holidays with those whom you regularly exchange gifts, but make it fun. You might suggest handmade items only, gifts under $10, one gift for a whole family, limit shopping to consignment or thrift store finds or pick a theme such as useful or consumable items only.
  7. Purchase the same type of gift for everyone. It could be umbrellas, scarfs, journals, board games, puzzles, nice pens, throws, books, or flashlights and batteries.
  8. Recipe Book. You could make up a recipe book with family favorites or provide a blank recipe book for the great cooks in your life.
  9. Coupons for your services. Offer your time and abilities. You can create coupons related to your skills. Perhaps it is cooking a favorite meal, snow shoveling, home repair or an oil change, mending, guitar lessons and so on.
  10. Create a special memory. Look in newspapers or online for special events this holiday that are free or low cost. Instead of purchasing gifts, make a date with your family and friends to enjoy an event together and get together for desserts and coffee.

Most importantly: enjoy your holidays!

 

Syncing Your Phone To Your Car Can Put You At Risk

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In our uber-connected world, pressing a button on the steering wheel to make a phone Hand holding moble phone on dashboard of carcall is already second nature for many of us. With just a few taps, we can pull up our favorite playlist, read recent emails and even send a text message. Using our cars like a phone and storing information in data systems is incredibly convenient! And it helps us safely drive while using the phone hands-free, too.

Convenient though it may be, security experts are warning that syncing your phone to your car can put you at severe risk for a data breach. Connecting a rental car or a rideshare vehicle to your phone poses an even greater security risk.

Keep your information safe and avoid getting hacked by educating yourself about this oft-overlooked risk. Here’s what you need to know about the dangers of syncing your phone to your car.

The sensitive information stored in your phone-and your car

When you connect your phone to your car, you’re using your vehicle to store loads of information that’s frighteningly easy to access.

Would you ever leave your wallet on the passenger seat of your car in a crowded neighborhood and then leave the doors unlocked? By storing your personal information in your car, you’re essentially doing just that. A hacker can easily scrape data from your car, even if your phone is nowhere in sight. All they need to do is connect their own phone to your car’s Bluetooth system and they’re in!

This is especially alarming when you consider the excessive amount of sensitive data most people store in their phones without thinking much of it. Here is some of the information a hacker can access via a synced car:

  • Recent call log
  • Recent text messages
  • Garage door opener code
  • Personal calendar
  • List of contacts
  • Recent emails
  • GPS data that includes your home address

Use extra caution when renting a car

If syncing your own vehicle to your phone poses a security risk, that risk increases tenfold when using a rental car.

According to a report from Privacy International, most major rental-car companies have no policies to delete sensitive information that is collected during a rental once a user returns the car. You may have experienced this yourself if you’ve ever picked up a rental and find that the device information of the last 10 renters was still stored in the vehicle. That means, if you were to sync your own phone, the next renter would have your information at their fingertips.

It’s fun to have your own music blasting through your ride, and it’s convenient to sync your stored addresses to the car’s GPS system. But no fun or convenience is worth the risk this move can pose to your privacy and safety.

When you leave your personal information in a rental car, you run the risk of the next renter using your information to access your financial accounts, rob your home, or even steal your identity. And don’t make the mistake of thinking that your name and navigation history are not enough for a criminal to do much harm. Once they have this bit of information, they can hack into your social media profiles and crack open your passwords and usernames all over the internet. There are loads of creeps just waiting for the opportunity to act-don’t put yourself at risk!

You can delete your device’s information from the car you rent, but that can also be scraped by a low-level hacker. To be completely safe, it’s best not to sync your phone when renting a car at all.

If you frequently use rideshare programs, like Uber and Lyft, your driver might generously allow you to sync your phone to the car’s infotainment system so you can listen to your favorite song while waiting for the traffic to clear. This, too, can put your information at risk. If a driver ever makes this offer, pull out a pair of earbuds and tell the driver no thanks.

How to protect yourself

You don’t need to give up the convenience of a synced phone in order to protect your privacy. Simply follow these precautions and your information should be safe.

  • Never sync your phone with a rental vehicle or a ride-share car.
  • Don’t plug into USB ports in rental cars.
  • Delete any personal information already stored in your vehicle.
  • Adjust your phone’s settings to the strongest security levels..
  • Restrict the amount of information your vehicle can access and don’t allow it to store or access information without re-syncing to your phone.

Don’t let convenience put you at risk! Exercise caution and protect your privacy when syncing your phone to your car.

Your Turn: How do you keep the information stored in your phone safe from hackers? Share your best tips with us in the comments.

SOURCES:
https://www.google.com/amp/s/www.zdnet.com/google-amp/article/does-connecting-your-phone-to-your-car-open-up-new-security-risks/
https://www.google.com/amp/s/www.whio.com/news/local/connected-cars-how-syncing-your-phone-vehicles-could-put-your-data-risk/jnPmGicuvSVrdh5rs0gvgL/amp.html
https://www.google.com/amp/s/amp.usatoday.com/amp/1080225001

Why Do I Spend So Much When Shopping Online?

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Q: I’m really trying to stick to a budget this holiday season, and I’m doing most of mywoman holding laptop and opening boxes shopping online. It should be easy to stay on track, so why am I constantly going over budget?

A: Both online and in-store shopping can tempt you to overspend, but the internet is particularly designed to help you lose track of your dollars.

More and more people are choosing to hit the web instead of the mall for holiday shopping. The internet definitely wins for convenience. Since there are no crowded malls, no long lines and no crabby cashiers, it’s much more enjoyable. Plus, you get to shop in your PJs. Can it get better than that?

Shopping the old-fashioned way, though, is not without merit. When purchasing items that need to fit right or that you may need immediately, you might want to head to the mall or local small business. You might even save money that way.

If you choose to do most of your holiday shopping on the internet, though, it’s good to understand why we tend to overspend online.

Why we spend more online

Here are 10 ways online retailers push us to overspend:

  1. They push products strategically. The first few products you’ll see when you visit a retail website aren’t necessarily the hottest-selling items; they’re just the stuff the company needs to get rid of most urgently. Most people, though, will assume the products on the site’s homepage are the most popular and will quickly drop one or two of these items into their cart.
  2. They offer free shipping-with a minimum purchase. Don’t think the retailer is being super-generous when they offer to sponsor the shipping costs if you spend $50 or more. They’re only luring you to spend more. And it works: Most people choose to fill their carts with stuff they don’t need just to avoid paying the shipping fee.
  3. They make it super-easy to check out. Websites make their checkout process ridiculously easy just to keep you buying. If your info’s been saved on the site, you can order your whole cart within minutes. The quicker you make those purchases, the less time you have to rethink them and opt out.
  4. They offer spending-based discounts. Online retailers often offer discounts after you’ve reached a certain spending threshold. Just like the free-shipping minimum, these conditional discounts manipulate you into spending more just to qualify-even if you won’t save any money at the end of the day.
  5. They change their prices without rhyme or reason. Online retailers constantly adjust their prices according to consumer and market behavior. This tactic, known as “dynamic pricing,” is designed to draw you back to the site again and again just to check the going price. It also prompts you to buy before the price rises again.
  6. They use anchor pricing. Retailers want you to believe you’re getting a great deal. They frequently employ “anchor pricing,” or placing items with inflated price tags right next to one you’re looking at now to make your desired item look less costly.
  7. Their ads stalk you. Online retailers target you with ads based on your search history. They know what you’re into and they can even determine your style.
  8. They have lenient return policies. Online retailers purposely have looser return policies than their brick-and-mortar counterparts. They know you’ll consider these policies when making your purchase and that you’re more likely to buy something online if you can easily send it back to the store.
  9. They have a virtual checkout aisle. If you think you’ll save big by shopping online because you won’t be tempted to grab all those goodies that the brick-and-mortar stores have lining their checkout aisles, here’s a reality check: Retailers are smarter than that. They’ve discovered a way to create a virtual checkout aisle, full of last minute add-ons that go well with the stuff you’re buying. It’s all designed to make you drop another item or two into your cart before you realize your total is way above your planned budget.
  10. They stay in touch. That subtle email reminder that you still have items in your cart is really just a nice way of nudging you back into. buying mode. Fact is, it works. When retailers send you emails with headlines that scream about “Today Only!” and “Free Shipping on Every Order,” they get your attention. And your money, too.

Spending less online

Should you ditch the on-the-couch shopping and camp out at the mall until the holidays?

You don’t need to be extreme and do all your shopping IRL this year. By educating yourself about the most common manipulative tactics that online retailers use, you’re already better equipped at handling them. You can also follow these tips to keep your online spending to a minimum:

  • Shop with a list. Yes, just like the one you scribble before heading to the grocery. Don’t just have a look around your favorite sites. Decide what you want and need to purchase before browsing, and do your best to stick to your list.
  • Set a time limit. When there are no store closing hours to curtail your shopping trip, you can easily lose track of the time, which can trigger overspending. Plus, the internet is designed to keep you engaged, and one click leads to another. Give yourself a reasonable amount of time to shop, and once time’s up, snap your laptop shut.
  • Never pay full price. Don’t check out without doing a quick search for coupons and discounts on sites like RetailMeNot.com and CouponCabin.com.
  • Don’t twist yourself into a pretzel to qualify for free shipping.Don’t buy stuff you don’t need just to avoid a dreaded shipping fee.
  • Shop early. You’ll find it easier to stick to your budget, and to avoid the free shipping trap, when you shop early. Plus, many e-tailers offer free shipping with no strings attached as long as you don’t mind waiting a bit for your stuff to show up.

With awareness and careful planning, you can stick to your budget this holiday season-even when shopping online.

Your Turn: Do you spend more when shopping online or in-store? Tell us all about it in the comments below.

SOURCES:
https://www.google.com/amp/s/www.cnbc.com/amp/2017/05/18/you-might-be-spending-twice-as-much-money-as-you-think-online-shopping.html
https://www.google.com/amp/s/www.recode.net/platform/amp/2018/6/8/17441288/internet-time-spent-tv-zenith-data-media
https://apparelmag.com/holiday-trend-continues-consumers-will-do-more-shopping-online-vs-store-season
https://www.everydollar.com/blog/online-vs-in-store-shopping
https://www.google.com/amp/s/kdvr.com/2017/12/04/do-you-spend-more-when-shopping-online/amp/
https://www.google.com/amp/s/amp.businessinsider.com/sneaky-ways-online-retailers-get-you-to-spend-more-2016-5

5 Scams To Avoid This Black Friday

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Black Friday and Cyber Monday can be great fun – but they can also put you at great risk.woman shopping black friday sale on tablet Scams abound on the weekend that heralds the holiday shopping season, and you don’t want a phishing scheme or a bogus bargain to turn you into a Grinch.

Here are 5 scams to look out for as you brave the frenzied crowds while trying to snag the best deals after Thanksgiving.

Crazy deals that are actually bogus

The noisy crowds and flashy ads on Black Friday can lead you to make rash decisions and spend more than you planned. But be careful not to leave your senses at home.

An iPhone X retailing at just $12? A pair of genuine Ugg boots for just $9? These deals sound insane because that’s exactly what they are. And yet, thousands of people happily send their money to online stores that are advertising these laughable prices on Black Friday. And of course, once the scammers have your credit card information, they won’t hesitate to use it for their own shopping spree – all on your dime.

Be smarter: Don’t believe any advertised price that is ridiculously low. It’s only bait used by scammers to lure you into their trap. Black Friday deals tend to fall within the 20-30% off range or an offer of free shipping.

Black Friday gift cards for cheap

In the weeks leading up to Black Friday, you might see an explosion of cheap gift cards being sold at online marketplaces. The gift cards are linked to big-name retailers and are offered for a fraction of their real value.

These cards are usually stolen from their real owners. The victim of the theft will likely report the loss and the card will be disabled. And you’ll have forked over your hard-earned money for a card that’s not worth the plastic it’s made from.

Be smarter: Don’t buy any gift cards that are retailing at a heavily marked-down price.

Bait and switch

Want to be the lucky winner of a brand new iPhone X? Just fill out a form with your personal details and take this survey. You may just be the proud new owner of the super-expensive phone!

If you know anything about online scams, you’ll already recognize this one. Your personal details and a site whose authenticity you can’t verify are two things that should never meet. The sweepstakes is just the scammer’s bait to get at your information. And, with holiday expenses growing each year, it’s the perfect time to lure an innocent victim into thinking they’ve just saved a ton of money.

Don’t make the mistake of thinking you’re safe from this scam just because you’re doing all your Black Friday shopping at the mall. “Bait and switch” scams can happen offline, too.

The brick-and-mortar version of this scam is somewhat less nefarious. Retailers will advertise deals so amazing you’ll find yourself traveling across town and battling impossible traffic to grab these bargains. Once you finally reach the store, though, you’ll be told that those items are all sold out, but you can check out the items they do have in stock. You’ll be shown similar, but inferior, products and cheap knockoffs, or nothing you’re interested in at all. These scams are just a waste of your time and often your money, too.

Be smarter: Don’t enter any sweepstakes or believe advertisements for heavily marked-down prices on sites and stores you’re unfamiliar with.

Delivery problems

With so much of your shopping happening online, you probably wouldn’t be surprised to receive an email claiming there’s been a problem with the delivery of one of your purchases. But if you get an email like this asking you to click on a link or download an attachment to arrange an alternative delivery date, you’re looking at a scam. You may also receive a message asking you to pay an extra fee for delivery after you’ve completed an order. Again, this email is bogus and you’re being scammed. Ignore these emails. And, if you have a problem with the delivery of your purchase, contact the seller or company directly.

Be smarter: Never download anything or click on a link from an unverifiable source.

Online purchases that can only be paid for with a wire transfer

If you’re planning on going on an all-out spending spree this Black Friday, use your credit card. It offers you the most protection against purchases that don’t turn out to be what you expected.

A debit card can be a good choice, too, if you’re only shopping at stores and retailers you trust and frequent often (don’t forget that Small Business Saturday is in between Black Friday and Cyber Monday – support your local retailers!).

Never agree to an online purchase demanding payment via money order or wire transfer. These are favorites among scammers since they are similar to paying with cash – once the money has changed hands, there’s almost no way you can get it back.

Be smarter: When frequenting unfamiliar stores and sites, use your credit card.

Be an educated shopper this Black Friday and outsmart scammers!

Your Turn: Have you ever been targeted by a Black Friday scam? Share your experience with us in the comments below.

SOURCES:
https://www.finder.com/black-friday-scams
https://www.scam-detector.com/article/black-friday-scam
https://www.makeuseof.com/tag/6-scams-watch-black-friday-cyber-monday/