The Credit Counseling Professionals

Skimming: Be Careful Where You Swipe Your Card

Thieves can use card scanners to steal your identity

The massive breach of credit card information from TJX Corporation in Massachusetts grabbed national headlines. Orchestrated by nearly a dozen hackers, customer account information was accessed through wireless networks. Customers of TJMaxx, HomeGoods, Marshalls, and other stores were victimized. Recently another method of identity theft has increased in appearance. It’s called “skimming,” and it can happen almost anywhere from restaurants and retail stores to gas stations and ATMs. “Skimming” involves a portable card reading device that is placed on top of the normal devices in which you would usually swipe your credit or debit cards. Once swiped, the device will store all of your personal account information, later to be uploaded into a computer. From there, the thief can create a blank credit card with your information and proceed to make purchases and ATM withdrawals from your accounts.

One major problem is that these card readers are perfectly legal. They are typically used at conferences and trade shows where business and client information is collected from ID badges. Smaller retail stores may also use card readers to make sales. This makes it very hard to crack down on illegal use of the devices.

So what can you do to avoid being victimized by “skimming?” ACCC has the following advice to protect yourself:

1. Keep an eye out for any unusual objects, devices, loose wires, or anything out of the ordinary on the machines in which you swipe your card.
2. Always swipe the card yourself, or ask to witness your cashier/server swipe the card so you can watch for any suspicious activity or devices.
3. Whenever possible, use a credit card. The money stolen is insured, and your bank account information will not be accessed.
4. If you think your information has been stolen, check your account statements and alert your bank or credit card company.

Off-Season Travel: Know When to Go

ACCC knows the best and least expensive fall destinations

Fall is upon us, and soon it will bring the cold, drab weather that is dreaded by so many. Some people like to see the leaves change color. For others, fall is the perfect opportunity to take a vacation and extend that summer feeling. It’s perfect because many popular destinations are at the end of their busy tourist season. The crowds are shrinking, but the bargains are growing. Consumers can plan a getaway and save some money by visiting these popular vacation spots in the fall…

• Hawaii: The prices have gone down, but the weather stays the same. Due to the economy and the slow season, hotel bookings drop by 30% in the fall. So, they’ll be slashing their prices to attract more vacationers. Airfares offer autumn deals as well; as low as $470 roundtrip from the Western U.S.
• Panama: September and October are the tail end of the rainy season; just dry enough to enjoy the sights. Direct flights from Boston start around $330, and $251 from Miami. Compare to $414 and $324 respectively in July, and over $500 in winter.
• New Orleans: Hurricane season winds down in October, and so does tourist season. Incredibly inexpensive hotels are available, like 4-stars for $65 a night. Flights from Chicago start at $220. That price doubles in the summer months.
• San Diego: Fly non-stop from Chicago in July for $447 round trip, or wait till September for $370. The price drops another $100 if there’s a layover.
• Bahamas: Package deals with hotel and airfare start at $440 from Chicago, and $476 from Boston. The same package is 25% more in July. 35% more in February.

For those who would rather not fly, consider nearby attractions for weekend getaways and road trips for even cheaper vacations. Hit up a fancy hotel in the city, or escape to a country bed and breakfast. Skip all the traveling expenses and soak up some local flavor that’s been overlooked.

Every vacationer should do their own research, and be thorough in seeking out the best deal for them. The Internet is home to many great tools for finding inexpensive travel arrangements. Try kayak.com, priceline.com, travelocity.com, expedia.com, and hotels.com. Also check the websites of the airlines and hotels themselves. Book airfare and hotel together for less expensive “package” deals and, whenever possible, book a trip far in advance.

Buying Used in a New Economy

Thrift stores see increased sales in slow economy

Certain costs and spending cannot be avoided. Your home needs heat, your family needs food, and your car needs gas. However, more and more people are discovering a new way to save money on items like clothing and home goods. The answer is thrift store shopping. Nearly two-thirds of resale and thrift shops like the Salvation Army, Goodwill, and consignment stores have seen increased sales over the past year. The average thrift and resale store has increased sales by 35%.

Consumer attitude and perception are changing. In this economy, many people can’t afford to turn up their noses at used and discounted products. Even those who can afford to aren’t indulging in luxuries as often as they once did. Consumers in general are more receptive to the idea of buying used or discounted products to save money. They’re out seeking deals and more hesitant to spend frivolously. Luckily, the current economy and this new perception encourage and reinforce a more frugal lifestyle. It’s becoming quite typical.

Of consumers with household incomes of $100,000 or more, nearly three-quarters report that they were cutting back their spending as of July 2008. 81% of households in the $50,000 - $99,999 income bracket say the same. Just three months earlier, these opinions were down by 4% - 9%. In the midst of the national financial crisis, few are too proud to buy used merchandise.

Search for thrift and consignment stores in your area and change your perception. You might be surprised at the money you’ll save and the quality you can find.

Scammers Go Phishing, Don’t Take the Bait

Criminals Take Advantage of Vulnerable Consumers

Over the past several weeks, America’s financial landscape has been changing quickly and radically. Banks are failing, stocks are dropping, companies are merging, and the consumer is left wondering what will happen to them. They are rightfully confused, but this is exactly the kind of environment where scammers attack. Scammers are “phishing” to take advantage of vulnerable people who may be unaware of exactly what is happening with their financial institutions. The technique is nothing new, but the current state of our financial system makes it even more effective for criminals.

“Phishers” send out emails and automated phone calls posing as representatives from a company that has acquired your bank, lender, or mortgage company. They’ll ask you to “verify” or “update” your account information. They may even warn you that they’ve experienced a “data breach” and that your account is in jeopardy. The truth is that they aren’t affiliated with your bank or any other financial institution, and they’re not trying to help you. They’ll use your personal information to run-up bills and empty your account.

The emails and phone messages will direct you to websites that the scammers have built to look like those of your financial institution. This is where they will try to collect your information, but don’t be fooled. They may look authentic, but the scammers have made them that way to trick you. If you’re unsure about the status of your bank account, loan, or mortgage, call the company directly. Do not follow web addresses or phone numbers that are given to you by emails and automated phone messages.

Use the following tips to protect yourself from phishing.

• Don’t reply to emails or pop-up messages that ask for personal or financial information, and don’t click on any links to other websites.
• Don’t send your personal or account information in an email. It is not a secure means of sending private information. This includes account numbers, PIN numbers, social security numbers, and passwords.
• Review your financial statements to check for unusual or unauthorized activity.
• Use your previous statements to find the phone numbers and emails to contact your financial institution with any questions or concerns.
• Forward phishing emails to spam@uce.gov, and to the institution or company impersonated in the phishing email. You can also report phishing emails to reportphishing@antiphishing.org. The Anti-Phishing Working Group, a consortium of ISPs, security vendors, financial institutions and law enforcement agencies, uses these reports to fight phishing.
• If you’ve been victimized by phishing or any other scam, visit the Federal Trade Commission’s Identity Theft website at ftc.gov/idtheft for important information on what steps to take.

To Sip, or to Guzzle

ACCC helps you decide whether you should trade in your gas-guzzler

Rising gas prices are driving consumers to curb their SUV’s and take the wheel of more fuel-efficient cars, but is this the right move? Many people think only about their immediate cost at the pump, and forget about the long-term effects. Trade-in value, driving habits, how much is owed on a car loan; these should all be considered before deciding to sell a used SUV.

The first tip is not to sell a car after less than 3 years of driving it. This is the time when a vehicle depreciates the most, losing 40 - 50% of its original value. A car can be used for a few more years, and still retain nearly as much value. SUVs in particular are quickly depreciating in value (8% in the last 6 months on average). Still, trading in the gas-guzzler may not save money. The gas may still be expensive, but it’s better in the long-run to get the most value out of the vehicle while being able to drive it for twice as long. It’s also important to know that the savings may not be immediate. For most, trading an SUV for a compact will cost more right now, but balance out years later.

Here is an example: A consumer trades in a four-year old GMC Yukon, worth $17,314, for a new $24,076 Toyota Prius. The difference is $6,712. If the consumer drives 1,200 miles per month and gas costs $3.74 per gallon (national average), the monthly fuel savings will be $249.74. At this rate, it will take 27 months to pay back the additional cost of the Prius over the trade-in value of the Yukon, and start saving money from the lower fuel price.

Buying a small, fuel-efficient car is an excellent way to combat rising gas prices, but the sticker price is what dents your wallet. The average price of a compact car has increased by $2,532 since 2004. That’s nearly double the average price increase of all other cars. Right now is the worst time to sell an SUV, and also the worst time to purchase a compact car. Every situation is different and it may take some time to see the savings, but consumers must weigh all of the factors and compare all of the costs before making a change.

Good Times with Short Money

Impress a new friend with these fun and inexpensive date ideas

Everyday life is getting pretty expensive as it is. On top of that, you just got yourself a date. So, you want to impress your new flame without burning through all your cash? The credit counseling professionals at ACCC have some great ideas for having a good time without emptying your pockets.

1. How about a picnic in the park or at the beach? Yes, it’s a cliché but everyone secretly loves doing it. Gather up your favorite snacks, some good wine, and find a nice spot to sit and enjoy. Take it one step further and look up your local parks, amphitheaters, and other outdoor venues. There’s a good chance that you can find some free outdoor concerts and plays, particularly in the warm weather.
2. Speaking of parks, why not get some exercise? Take your date bike riding, rollerblading, or hiking for an afternoon. Take a nature walk in the woods or on the beach. Bring a camera and have some fun “striking a pose.” You can save money, get to know your new friend, and get in shape.
3. With a little research you can find a lot of fun free things to do in your area. A simple online search can reveal free or discount days at local museums and art galleries. Newspapers and local weeklies are also great resources for free event listings. Check the entertainment section.
4. Show your softer side by bringing your date to do some volunteer work. Are you passionate about a particular cause or charity? Prove it to your date. Volunteer at a hospital, an animal shelter, a charity event, or help spruce up your community by cleaning or gardening. Whatever piques your interest.

On inexpensive dates like these you can have tons of fun and build great memories, all without having to worry about how much you’re spending.

Save at the Supermarket

ACCC offers tips to save money on your groceries

Food is more expensive than ever, and ACCC has discovered some excellent ways to help you save money on your next trip to the grocery store. Use these tips, and you won’t need any coupons. Although, we still recommend using them whenever appropriate.

1. Don’t buy pre-cut, pre-made, or prepared meals. It is far less expensive to buy the ingredients and make the meal yourself. Pull out a knife and chop the meat and vegetables yourself.
2. Try the store brands. It may be just as good or even more to your liking than the national brands. Often times, one factory will produce the same product for more than one company. The only difference is the label and the price.
3. Make a grocery list that fits your budget. You should always have a plan for grocery shopping. Don’t wander around the store for ideas of what to buy. Make a list, stick to it, and don’t shop on an empty stomach.
4. Try another store. The grocery store might not always have the best deals. Check out drug stores for deals on milk, bread, soda, snacks, and paper products.
5. Buying in bulk can save money, but only buy as much as you’ll actually eat. There’s no point in buying two gallons of orange juice if the second gallon expires before you even open it. Buying in bulk is better if the item can be frozen, like meat. This way you won’t have to worry about the waste, just freeze it for later.
6. Why buy two when you only need one? If you see an item priced “2 for $5,” you don’t always have to buy two. Usually you can just buy one for $2.50. The same goes for “10 for $10” deals. You can buy three for $3.00 if you want to.
7. Join the rewards program or members club for any area grocery stores. It’s usually free, and you’ll have access to discounts every day. The good prices and sales are often reserved for those who are members.

With these tips you can save money, eat well, and minimize waste.

20 Money Saving Tips for the Grocery Store

• Sign up for customer loyalty programs.
• Don’t crisis cook and plan meals ahead.
• Clip coupons- newspapers & magazines, coupon swap boxes, supermarket & brand websites, in-store displays & circulars.
• Stop paying the middle man: shop for in season produce at your local farmer’s market
• Make a grocery list and stick to it.
• Shop alone.
• Never shop hungry, tired, or angry- save money and shop healthier.
• The best deals are up high, down low, and on the ends; avoid the main aisles and middle shelves.
• Buy store brand for better savings.
• Compare unit costs, not list prices.
• Buy only the minimum amount you need.
• Don’t buy non-grocery items at the grocery store: pick up toiletries, medicines and hygiene. products at a discount store or pharmacy.
• Look for manager’s specials in the meat department.
• Keep an eye on the scanner.
• Skip the pre-made foods; make meals ahead of time and freeze them.
• Be willing to shop at more than one store per week to save up to 19% by getting each store's best deals.
• Shop early in the day- go faster and save more.
• Shop with a calculator.
• Get a rain check if a sale item is gone.
• Make coupons go further- use with store coupons or items on sale.

Big changes are coming in television broadcasting

On February 17, 2009, all full power television stations are required to stop broadcasting in analog and continue broadcasting in digital only. Federal law requires it to free up the airwaves for police, fire, and emergency rescue communications. Viewers will like it with added programming and better picture and sound quality. No need to buy a new TV. Here’s what you need to do:

1. Connect your analog TV to a digital-to-analog converter box. Visit www.dtv2009.gov for two $40 coupons per household.
2. Buy a digital television (a TV with a built-in digital tuner). You do not need a HDTV to watch digital broadcast television. You only need a digital TV.
3. Subscribe to a paid TV service. If your TV set receives local broadcast stations through a paid provider such as cable or satellite TV, it is already prepared for the DTV transition.

For more information contact the Federal Communications Commission at www.dtv.gov or 1-888-CALL-FCC.

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