Month: February 2019

Don’t Get Caught In A Crowdfunding Scam

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The days of handouts and begging loans off wealthy relatives are fast becoming extinct.Woman sitting on sofa with a laptop Today, if you need boatloads of money-whether it’s to help you cover an expensive emergency or to fund a new business idea-you only need to appeal to the vast audience of the internet and wait for the money to start rolling in.

Crowdfunding platforms like GoFundMe, Kickstarter and IndieGoGo are packed with eager would-be entrepreneurs and desperately needy individuals alike.

But, they’re also packed with scammers.

For instance, an Iowa woman raised thousands of dollars on GoFundMe for her daughter’s terminal cancer-which would be heartwarming were it not for the fact that her daughter is perfectly healthy.

In a second example, an American company called Triton claimed to have created a device enabling people to breathe underwater. The IndieGoGo page they set up to raise funds for production pulled in $850,000 in just a few days. Sounds inspiring until you realize their supposed invention is more like something out of a sci-fi movie. In reality, Triton fooled many people with an invention that only existed in their imagination.

In yet another incident that garnered national attention, a New Jersey couple teamed up with a homeless veteran from Philadelphia to start a bogus GoFundMe page. The couple claimed the veteran had used his last $20 to buy gas for the wife when she was stranded on Interstate 95. It was the perfect feel-good story, with just enough pathos and emotion to get people to part with their money-to the tune of $400,000, in fact.

Later, when the veteran accused the couple of withholding his money, the case went to court. Proceedings are currently ongoing, but authorities believe the campaign was a scam and that the couple allegedly burned through a whopping $350,000 of donated funds in just a few months.

While some crowdfunding platforms will refund your money if a cause turns out to be a scam, most of them will keep a portion of it for themselves, so don’t plan to get back every penny if you get caught up in a scam. There’s also the possibilityof a crowdfunding scam remaining undetected, allowing the scammers to live it up on everyone else’s dimes. Even if your money does land back in your wallet, it’s never a good feeling to know you’ve been conned.

So, don’t let the scammers out there ruin it for everyone else! You should be able to share your money with any cause you believe in. Here are some tips to help ensure you’re chipping in for something genuine.

How to check a campaign for legitimacy

Whether it’s a heartbreaking story or a brilliant business venture you want to support, you’ll first want to research the campaign’s creator. Google their name to see what the internet has to say about them. Also, look up their street address and phone number to verify they’re using their real name, and check whether they’ve started any crowdfunding campaigns in the past.

If you’re looking at a charity campaign, your next step is to take emotion out of the picture. Charity crowdfunding scams succeed by playing with people’s heartstrings. Take the time to study the campaign with pure logic. Does the story really make sense? If you still think it’s legitimate and everything seems to check out, you can choose to donate. Or, you can take your caution one step further by contacting the campaign’s creator and asking for verification of their cause. If they’re genuinely in need, they’ll gladly supply you with names of doctors or references. But if they sound hesitant, or refuse to answer your questions, opt out.

If you’re looking at a crowdfunding campaign for a new business idea, ask yourself if the project is realistic. There are currently several GoFundMe pages set up by individuals with the goal of fighting ISIS. Sounds good until you realize how impossible it is for a single person to achieve such a goal. Lots of inventions or other business ideas also sound incredible until you realize they’re only possible in a fantasy world. Don’t help a business venture get off the ground until you can verify that it’s actually legitimate.

Do your due diligence with crowdfunding campaigns, and you can donate with confidence.

Your Turn: Do you have a crowdfunding horror story? Tell us all about it in the comments.

SOURCES:
https://www.google.com/amp/s/www.nj.com/news/2019/01/inspired-by-viral-gofundme-fraud-this-nj-bill-would-mean-harsher-punishment-for-scammers.html%3FoutputType%3Damp
https://www.daveramsey.com/blog/how-to-avoid-crowdfunding-scams
https://www.google.com/amp/s/www.nbcnews.com/news/amp/ncna936941
http://www.cracked.com/blog/6-incredibly-obvious-crowdfunding-scams-people-fell-for/

How Do Minimum Wage Hikes Affect The Economy?

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The United States has one of the lowest minimum wages of any modern country in the Two people working in a bakeryworld. Our modest salary floor impacts our economy on every level, from the rising underemployment rates to a bloated welfare program that chiefly rests on the backs of the struggling middle class.

But all of this is subject to change: The arrival of 2019 has brought a wave of minimum wage hikes at many state and local levels along with a push to bring the national minimum wage up to $15 by the year 2024. In total, 21 states and Washington DC have increased their minimum wages, with the biggest jump of $1.00 per hour more being passed in California, Maine and Massachusetts. There are now a total of 29 states with a minimum wage that surpasses the federal level, which has remained stagnant at $7.25 for more than a decade.

The recent wage increases impact 5.2 million workers across the country. While at first glance this might seem like fantastic news for the economy, financial experts are dubious about how recent hikes and the proposed increase in the federal wage will impact the national economy.

The push to boost the federal minimum wage to $15 an hour is more dramatic than any wage hike this country has ever seen. This factor makes it impossible for economists to draw on studies and actual history for conclusions about the effects of the proposed hike. However, based on market trends and the fundamental laws of economics, they’re predicting several negative fallouts from the hikes.

Let’s explore what happens when minimum wages increase.

How do wage increases affect the job market?

Economists are predicting the proposed hike in the federal minimum wage, along with the local and state increases that have already passed, will have two negative effects on the job market:

1.) A surge in move-outs to the suburbs

An increase in local and state government minimum wages will likely push employers to move across borders to avoid paying higher wages, particularly from central cities to suburbs.

For example, Washington, D.C. has raised its minimum wage to $14 an hour. This may lead to a mass exodus of Washington businesses as they move toward locations with lower minimum wages in surrounding areas. A move to a suburb like Arlington, Virginia, where business owners can pay their workers almost half the hourly wage they’d need to cover in Washington, will help them remain profitable.

2.) Businesses cutting corners

Businesses forced to double their workers’ pay or even to modestly increase it will need to find a way to continue turning a profit. They will likely attempt to cut corners any way they can. This may translate into letting workers go, replacing humans with robots where possible, or even cutting down on their level of service to reduce the need for human resources. For example, fast food joints might start using machines instead of human workers and hotel chains may start skimping on their cleanups between guests to compensate for increased payroll.

Regardless of the way that businesses choose to cut corners, it will likely lead to an increase in unemployment rates and underemployment rates across the country. It may also trigger a surge of illegal work among workers who suddenly find themselves out of a job.

How do wage increases affect the consumer?

When all the dust settles, it is the average consumer who will likely bear the brunt of the minimum wage hike.

Most companies hiring minimum-wage employees are small businesses with profit margins that are too thin to absorb a serious hike. These businesses will be forced to pass on their higher expenses to consumers. Grocery prices will shoot up, labor costs for services and repair persons of any kind will rise, and fast food meals will see a noticeable price increase.

Predictably, the consumers most likely to be affected by the hike are the poor and middle class, who tend to frequent businesses that hire minimum-wage workers. Ironically, the same workers rejoicing over the proposed hike will likely be those who have to pay for it most.

How do wage increases affect federal taxes?

One positive impact of a minimum wage hike is the hope that an increase in wages will reduce the number of workers who are dependent upon government assistance programs, thus reducing the average taxpayer’s burden. Of course, this is pure speculation and is not based upon any studies of similar increases.

Also, when low-wage workers are pushed over the qualifying threshold for government assistance, they may be coming home with less pay after a wage hike.

While no one can say for sure how a minimum wage hike will affect the economy on a national and individual level, economists predict it is far more likely to have a negative effect than a positive impact.

Your Turn:

Do you support a dramatic minimum wage hike? Why, or why not? Share your opinion with us in the comments, below.

SOURCES:
https://www.google.com/amp/s/www.washingtonpost.com/amphtml/news/wonk/wp/2018/01/11/what-does-a-15-minimum-wage-do-to-the-economy-economists-are-starting-to-find-out/
https://www.google.com/amp/s/www.forbes.com/sites/adammillsap/2018/09/28/how-higher-minimum-wages-impact-employment/amp/
https://www.google.com/amp/s/www.brookings.edu/opinions/a-15-hour-minimum-wage-could-harm-americas-poorest-workers/amp/
https://www.heritage.org/jobs-and-labor/report/15-minimum-wages-will-substantially-raise-prices
http://econweb.ucsd.edu/~mwither/pdfs/Effects%20of%20Min%20Wage%20on%20Wages%20Employment%20and%20Earnings.pdf
https://www.google.com/amp/s/www.usnews.com/news/best-states/articles/2018-12-31/minimum-wage-increases-in-20-states-in-2019%3Fcontext%3Damp
https://www.google.com/amp/s/amp.businessinsider.com/minimum-wage-2019-state-map-2018-12

7 Steps Toward Purchasing An Auto Insurance Policy

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Are you in the market for a new auto insurance policy? Look no further thanman at computer Destinations Credit Union! We’ll help you get the maximum protection for your investment at the best possible price.

Read on for your guide to purchasing auto insurance in 7 easy steps.

Step 1: Choose a way to purchase your policy

You can choose to buy a policy directly from an insurance company or through an independent insurance broker.

If you already have homeowners or renters insurance, you likely also have the option of purchasing an auto policy through your current insurer. Choosing to bundle policies may give you a discount of as much as 15% off the usual cost of the policy.

If you’re working with insurance companies, contact each one individually to get your quotes. This is likely to be the best approach if you’re only choosing between two insurance companies or between several policies from the same company.

If you’re open to purchasing a policy from any company, and you’d rather not spend the next month getting quotes, you’re best off using an independent broker. You’ll only need to fill out one application and the broker will do the research for you, pulling up several quotes for you to compare and consider.

Step 2: Decide how much coverage you need

When choosing a policy, you can opt for maximum coverage, the minimum required by state law or any amount in between.

Here are the primary categories of auto insurance coverage:

  • Liability coverage. This includes coverage for bodily injuries, property damages or auto damages to another motorist if you’re at fault.
  • Comprehensive coverage. This will pay for any damage and losses to your car that were not caused by another vehicle, including damage from inclement weather, theft, floods and more.
  • Personal injury protection. This covers medical bills for you and your passengers in the event of an accident.
  • Collision insurance. This covers the damages to your car if it’s involved in an accident.
  • Uninsured/underinsured motorist protection. This pays for damages caused by another motorist who does not have sufficient insurance coverage.
  • Gap insurance. This coverage is exclusively for financed or leased cars. It pays the difference between what you owe and what the car is valued at if there were a total loss of the vehicle.

There are several coverage add-ons you may be interested in as well, including roadside assistance, rental car insurance and rideshare insurance for those employed by a rideshare company, like Uber or Lyft.

Step 3: Determine your risk

Ask yourself these questions to assess your risk of being in an accident or of your vehicle incurring damages:

  • How many hours do you drive each week? If you drive an excessive amount, you may want to opt for more coverage.
  • Are you financing or leasing your car? If you are, consider gap insurance.
  • Do you drive in high-traffic areas and/or park in an area that has lots of break-ins? Both factors increase your car’s risk of damage and are reasons for increased coverage.
  • Do you spend many hours driving for business-related reasons? If so, you may need a commercial policy.
  • Will any of your children be driving your car? If you have a teenager who will be using your car, it’s a good idea to increase your coverage cap.

Step 4: Fill out an application(s)

No matter how you choose to apply for car insurance, be prepared to supply the following information:

  • The year, make and model of your car
  • Your driving history
  • Your marital status
  • Your education
  • Your employment status, details and history
  • The names and birthdates of everyone who drives your vehicle
  • The ownership history of your car

Step 5: Get your quotes

You’ll get your quotes within a few hours of submitting your application, and sometimes as quickly as within a few minutes.

Your quotes will include several options for the deductible and the premium amounts. In general, a higher deductible, which means paying more out of pocket when you file a claim, will give you a lower premium. While this option might mean there’s more money in your wallet each month, it can spell catastrophe for your finances if your vehicle is involved in a theft or accident requiring expensive repairs. Your best option is to take the middle road and find a plan that offers the maximum deductible you can easily afford along with the lowest premiums.

Step 6: See if you qualify for a discount

Before signing on a quote, check if you qualify for a discount. Any of the following factors may make you eligible for a cheaper plan:

  • Your vehicle has safety features or an alarm system.
  • You’re a military veteran.
  • You’re a full-time student with a decent academic record.
  • You have an excellent driving record.
  • You’ve completed a defensive driving or safety course.
  • Destinations Credit Union members get discounts on auto and homeowner’s insurance.

Step 7: Choose your policy

When you have all the details ironed out and you’ve compared several plans, you’re ready to choose an auto insurance policy that best suits your needs.

Once you’ve made a decision, be sure to pay your premiums in a timely manner and to keep your insurance identification card in your vehicle at all times. If you are involved in an accident or are the victim of theft, contact your insurance provider through the number provided on your insurance identification card as soon as possible. It’s also a good idea to try shopping for a cheaper policy once a year.

Your Turn: What’s your best auto insurance tip? Share it with us in the comments!

SOURCES:
https://www.google.com/amp/s/www.cbsnews.com/amp/news/a-beginners-guide-to-buying-car-insurance/
https://consumerist.com/2014/03/19/15-things-you-need-to-know-about-buying-auto-insurance/
https://www.policygenius.com/auto-insurance/how-to-buy-car-insurance/

5 Ways To Pay Off A Loan Early

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If you’re like most Americans, you owe money toward a large loan. Whether that meanscouple working on computer carrying thousands of dollars in credit card debt, having a hefty mortgage in your name or making car loan payments each month, loan debt is part of your life. This means you’re looking at hundreds of dollars in interest payments over the life of the loan(s). There’s also the mental load of knowing you owe perhaps tens of thousands of dollars and that you’ll be paying back the loan for years to come.

It can all get kind of depressing-but it doesn’t have to be that way.

Did you know there are simple, but brilliant, tricks you can employ to lighten the load? With a carefully applied technique, you can pay off your mortgage, auto loan, credit card debt and any other debt you’re carrying quicker than you thought possible. These tricks won’t hurt your finances in any dramatic way, but they can make a big difference to the total interest you’ll pay over the life of the loan and help you become debt-free faster.

You can free up more of your money each month, use your hard-earned cash for the things you want instead of forking it over in interest and live completely debt-free sooner than you’d dreamed. It’s all possible!

A note of caution before we explore these tricks: Check with your lender before employing any approach, as some loan types have penalties for making extra or early payments (we don’t at Destinations Credit Union!).

1. Make bi-weekly payments

Instead of making monthly payments toward your loan, submit half-payments every two weeks.

The benefits to this approach are two-fold:

  • Your payments will be applied more often, so less interest can accrue.
  • You’ll make 26 half-payments each year, which translates into an extra full payment on the year, thereby shortening the life of the loan by several months or even years. If you choose this method with a 30-year mortgage, you can shorten it to 26 years!

2. Round up your monthly payments

Round up your monthly payments to the nearest $50 for an effortless way to shorten your loan. For example, if your auto loan costs you $220 each month, bring that number up to $250. The difference is too small to make a tangible dent in your budget, but large enough to knock a few months off the life of your loan and save you a significant amount in interest.

For a potentially even bigger impact, consider bumping up your payments to the nearest $100.

3. Make one extra payment each year

If the thought of bi-weekly payments seems daunting but you like the idea of making an additional payment each year, you can accomplish the same goal by committing to just one extra payment a year. This way, you’ll only feel the squeeze once a year and you’ll still shorten the life of your loan by several months, or even years. Use a work bonus, tax refund, or another windfall to make that once-a-year payment.

Another easy way to make that extra payment is to spread it out throughout the year. Divide your monthly payment by 12 and then add that cost to your monthly payments all year long. You’ll be making a full extra payment over the course of the year while hardly feeling the pinch.

4. Refinance

One of the best ways to pay off your loan early is to refinance. If interest rates have dropped since you took out your loan or your credit has improved dramatically, this can be a smart choice for you. Contact Destinations Credit Union to ask about refinancing.

It’s important to note that refinancing makes the most sense if it can help you pay down the loan sooner. You can accomplish this by shortening the life of the loan, an option you may be able to afford easily with your lower interest rate. Another means to the same goal is keeping the life of your loan unchanged and with your lower monthly payments, employing one of the methods mentioned above to shorten the overall life of your loan.

5. Boost your income and put all extra money toward the loan

A great way to cut the life of your loan is to work on earning more money with the intention of making extra payments on your loan. Consider selling stuff on Amazon or eBay, cutting your impulse purchases and putting saved money toward your loan, or taking on a side hustle on weekends or holidays for extra cash. Even a job that nets you an extra $200 a month can make a big difference in your loan.

Triumph over your loans by using one or more of these tricks to make them shorter and pay less interest. You deserve to keep more of your money!

Your Turn: Have you used any of these methods or a different approach for paying off a loan early? Tell us about it in the comments.

SOURCES:
https://www.thebalance.com/how-to-pay-off-debt-early-315571
https://www.google.com/amp/s/www.huffpost.com/entry/top-6-ways-to-pay-off-any-loan-faster_b_1624242/amp
https://www.payoff.com/life/money/6-ways-to-pay-off-your-car-loan-early/