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| Tips
to becoming the cash conscious college student |
Fraud Alert: Don't Pay What You Don't Owe
An estimated 20 million Americans are paying fees they don't owe on their monthly phone bills. The scam is called "cramming." According to the Federal Trade Commission (FTC), "Cramming happens when a company adds a charge to your phone bill for a service you didn't order, agree to, or use." The charge may show up just once or every month. The FTC sites examples such as charges for international calls you didn't make or for services like "web hosting." These fees are often hard to identify because they may sound like charges you actually owe.
According to the Federal Communications Commission, 19 out of 20 people don't recognize these charges, and they pay them every month. That can cost the unsuspecting consumer hundreds of dollars a year. Typically, when consumers discover the charges, phone companies will only credit the amount of the fees for the past 60 days.
To protect yourself, review the charges on your phone bills (and all your other bills, too, for that matter) every month. If your bill goes up even a few dollars, look for the cause. Look at every page and question any fee you don't recognize or understand. Many cramming charges are for generic-sounding services such as "Activation," "Member Fee," or "Minimum Use Fee." Ask for a credit if you believe you have been charged for something you don't owe, and make certain you ask for the charge to be permanently removed in the future.
For more information on cramming, visit the Federal Trade Commission's Web site at: http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro18.shtm.
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Your Guide to Smart Auto Shopping
Buying a car can be a tough experience. How do you know you're getting the best deal? How can you keep yourself from paying too much for financing - especially when you're just starting out and you don't have much of a credit history? And with complaints of auto-related fraud on the rise, how do you protect yourself against fraud?
For the inexperienced car-buyer, the process can be intimidating. Follow these steps and you'll be much more likely to end up paying a fair price on the vehicle that will best suit your needs.
- Slow down! Speeding through the process can be dangerous! Don't let yourself fall in love with a car that you "just can't live without."
- Budget before you shop. Begin the process by determining what you can afford. Take a hard look at your budget to determine what size car payment you can handle each month. That will narrow your options.
- Make financing your next step. Come to the credit union to be approved for financing first. You have more bargaining power when you have your financing worked out BEFORE you go into the dealer. Dealer financing may look too good to pass up, but don't be fooled. Most consumers don't qualify for the best advertised rate, and end up paying more in interest than they would at their financial institution.
- Do your homework. Doing some research at the library or online on the performance ratings of various cars will narrow your choices further. The annual Consumer Reports car issue (April) is one good source for that information. Check pricing guides so you'll know what the vehicle should cost.
- Don't deal with dealerships that require you to sign a mandatory arbitration agreement.
- Don't buy on your first visit. You will pay more if you don't shop around.
- Never leave a deposit until the seller agrees to your price. One key strategy is to negotiate price up from the dealer's cost, rather than down from the manufacturer's suggested retail price.
- Don't fall for "spot deliver." That's a dealer offering to let you take the car home before you've bought it.
- Stop the transaction if you feel pressured or confused.
- Before you sign, check the agreement carefully to confirm that it reflects the agreed upon terms.
- Remember that the price of the new car isn't where seller makes money. It's made with add-ons that can be confusing, or that you may never even see. Compare the dealer's warranty with warranties available at the credit union.
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Over 58 percent of respondents to the Mid-Year 2011 Saving and Purchasing Survey conducted by Georgia Credit Union Affiliates (GCUA) reported that they are living paycheck to paycheck. With every penny needed to make ends meet, an increasing number of people are making efforts to live more frugally. Over 90 percent of respondents to the survey said they are reducing their spending. These tips can help you cut expenses without sacrificing the quality of your life.
- Use coupons, but only clip those on items you need or would normally buy. Resist the urge to purchase items just because you have a coupon.
- Purchase non-perishable items in bulk when they are on sale (and don't forget to use any coupons then, too).
- Purchase generic brands. In many cases, like over-the-counter medication, the generic product is identical to the name brand.
- Skip the impulse purchases. If you find yourself fighting an impulse purchase, make yourself walk away and wait. If you still want it after three days, check to see if it will fit into your budget for the month.
- Set dollar limits on purchases and stick to them. Then see how many items you can squeeze in for that amount.
- Prepare meals consisting of meats, vegetables and fruits. Junk food and boxed food is more expensive and doesn't fill you up, thus leading to the afternoon drive-thru snack.
- Purchase discounted store-brand gift cards (for grocery stores, etc.) from an online gift card exchange. This type of program allows you to pay less than the value of the gift card. Purchase the card for only the amount you have budgeted to spend.
- Don't waste your money on poor quality. Wait for the bargain on the quality item.
- Actively manage your financial accounts. Avoid out-of-network ATM fees by withdrawing cash only at surcharge-free ATMs or during purchases at many stores.
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