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Deer Crossings and Identity Theft?
What do Deer Crossings and Identity Theft Have in Common?
by: Susan Sharkey, National Endowment for Financial Education® (NEFE®).
Defensive Driving Lessons and Defensive Consumer Tactics
In drivers’ education courses, we are taught to drive defensively and watch for careless drivers — as well as anything else that might appear unexpectedly on the road. That training was especially relevant when I lived in Wisconsin and Minnesota, where one had to be vigilant to avoid contact with deer that periodically would dart across one’s path. What does deer crossings and identity theft have in common? More than you might think.
Both scenarios call for alertness to conditions that could lead to potentially costly and time-consuming inconveniences, including reporting mishaps and repairing damage. I am distrustful when put into a suspicious situation, whether scanning the road and shoulder to spot deer lurking in the shadows of trees, or skimming my inbox for unsolicited emails requesting my account information.
In both cases, I apply safeguards within my control. I sound my car horn to ward off deer from crossing the road at dusk, and I shred discarded mail and paperwork at home to deter theft of financial data or access to my account information. If something does happen — whether it’s a deer or fraud mishap — I act swiftly to file relevant reports and repair damage so my life returns to normalcy as soon as possible.
Higher Odds Than You Might Think
In 2016, State Farm Insurance reported the odds of hitting a deer while driving in Wisconsin to be 1 in 77 drivers. With those odds, it seems only a matter of time before I would have a deer-auto incident. Similarly, it is not a matter of if identity fraud will happen; rather, it is more likely a matter of when it will happen.
Data from the Javelin Strategy and Research 2017 Identity Fraud Study revealed that 2016 saw the highest number of victims — 6.15 percent of consumers (15.4 million) – reporting nearly $16 million in losses due to identity fraud. Consumer fraud is the fastest growing crime in the U.S., costing twice as much as property crime, according to the U.S. Bureau of Justice and Statistics. In addition to victim costs, many hours are spent filing reports with police and creditors, verifying and fixing account information, replacing lost items and conducting investigations.
Much like defending against deer collisions, defensive tactics can and should be applied to minimize damage caused by fraud. Whether or not you or a family member have been a victim of identity fraud, be aware of sensible precautions and credible resources to protect against and remedy circumstances of fraud.
The High School Financial Planning Program® (HSFPP) is the flagship program of the National Endowment for Financial Education® (NEFE®). NEFE is the leading private nonprofit, noncommercial foundation dedicated to inspiring empowered financial decision-making for individuals and families through every stage of life.
Learn more about the complete suite of NEFE’s free consumer and educator resources at www.nefe.org.
Six Rules for Managing Credit Card Debt
If you want to be the master of your credit card debt load, follow these key six rules for managing credit card debt:
1. Take inventory. How many credit cards do you have? What’s the balance and minimum monthly payment on each? What’s the total balance? If it’s more than you thought or can afford, it’s time to pare down.
2. Check out the cost of your credit cards. What’s the interest rate on each card? What’s the annual fee? Does your card offer a grace period? If the card doesn’t have a grace period, or if you carry over a balance, or take a cash advance, you’re usually charged interest right away.
3. Get one low-fee or lower-interest card and use it wisely. Make Mid Oregon Credit Union your first stop when starting your search. Check to see if you can transfer existing debt from your various credit cards to your new lower-interest credit card.
4. Make the largest monthly payment you can afford. Even though you may not be able to pay your balance in full, paying the monthly minimum may do little more than cover the accrued interest. Ever heard about the “Debt Snowball”? It may do the trick for you.
5. Watch out for “teaser rates.” Your mailbox may be brimming with unsolicited credit card offers that promise attractive low-interest rates. But if you read the fine print, you’ll see that after six months or so the issuer may double the low introductory rate.
6. If you get in over your head, don’t bury it in the sand. It’s a good idea if you’re having trouble making your monthly payments, contact your creditors before they contact you. And, if you’re already screening calls from bill collectors, or refusing to open your mail, you need help.
It might be worth your time to talk to a Mid Oregon Loan Officer about different options to help you get out from under heavy credit card debt. Email, call (541) 382-1795 or visit our website for more details.
College Student Tax Refunds- The 4 Best Uses
For many of us who have recently graduated school or are still in school, tax season can be a happy time financially. Many people will get a tax refund from the IRS, and more will squander that money before it has a chance to make it through one statement. We have compiled a list of the college student tax refunds- the 4 best uses.
Here are some ways to spend it responsibly and feel good about it.
1. Let it grow
Consider putting all of that money or part of it into a high-yield savings account. Instead of just holding on to it, why not let it grow while it’s sitting in your savings? Talk to the friendly folks at your local credit union about the right fit for your financial situation.
Mid Oregon has a variety of savings options to help you decide. This could be the down payment on that new (for you) automobile purchase you have been considering, or the vacation fund which keeps you from charging your trip on that high interest credit card.
2. Invest
If you’ve been waiting on an injection of extra cash to take the first step, consider this your investment window. Finding the right investment opportunity for you and your financial outlook is much easier to do if you’ve got the cash on hand. Talk to your credit union to see what advice they offer for starting your portfolio.
Our Mid Oregon Financial Services can help with long-term financial strategies. It’s never too early to begin planning for the future, even if it seems far away right now.
3. Pay it off
This one ties in closely to suggestion No. 1. If you’ve got a credit card or loan accruing more interest monthly than you would gain in a CD or similar account, consider paying that off. Take a look at your obligations and see if one of them can be knocked out all at once with a portion of that tax refund.
If you can’t pay off all of your debt, consider talking to a Mid Oregon loan officer about interest saving options, such as a lower interest Mid Oregon Visa Card (with no balance transfer fees@) or a refinancing of your higher interest car loan.
4. Give yourself a small treat
It’s all right to spend a little on yourself. You work hard on your budget, and, hopefully, figured out a financially responsible way to spend a major portion that refund money. Take what’s left and buy yourself something fun.
Happy tax-refund season! Spend responsibly. And if you can’t find a way to use your tax refund money at this time, there are plenty of worthy Central Oregon non-profits that could put your extra refund money to good use, and help you invest in a different kind of way…and feel good about it!