Money

A typical scam practiced by insurance lenders is ‘mortgage insurance’. There is nothing actually illegal about mortgage insurance, but it is an unnecessary addition to a loan. Most mortgage insurance involves some sort of guarantee that your mortgage will be paid for you if you are out of work or incapacitated. This can be a good thing, although some agreements are very hard to collect on and all agreements should be read carefully.

The problem comes when lenders try to slip the payment in without telling you what it is, or when they tell you that it is a requirement for your loan. Some lenders may even try to force you to take the payment by telling you that it will ‘take days’ to rewrite the agreement. If they do, tell them that those are days that you can use to notify the FTC, and find a better lender!

Remember:

• Mortgage insurance is not the same as home insurance
• Always be clear about the details of any loan
• Always be ready to cancel an agreement if you suspect you are being ripped off

When an Internet Service Provider offers you a free trail period, it can be a good way to check out what they offer, but be careful. In most cases, these providers will require you to sign up for their service and provide them with a billing method such as a credit card number before they will let you use the ‘free trail’. At that point, it will be up to you to end your agreement before the free trial runs out. Do not expect the provider to notify you when your trial period is through.

Be sure to find out what you are agreeing to once the ‘free’ period ends. Some providers will try to lock you into deals lasting a year or longer. Most providers make it easy to sign up online, but to end your agreement you will usually have to call the provider. When you call, the person who answers will usually be a salesperson whose job is to keep you from canceling. Don’t let them talk you into something you don’t want.

Ads for new computers that are ‘free’, ‘low cost’ or ‘$199′ are generally scams. These ‘free’ computers usually require consumers to sign a service agreement or contract that can run hundreds of dollars. Read all offers carefully. If there is a rebate, make sure you qualify and are willing to go through the hassle of trying to collect. If they want you to sign up for a service, make sure that the service is something you want and that the charges, terms, and length of the agreement are something you can live with. There are many wholesale and retail options when buying a computer. The best strategy, when buying a computer, is to compare offers from several different sellers and avoid deals that come with additional agreements or mail-in rebates.

There are advantages and disadvantages to leasing or buying a vehicle. Below is a comparison of the two different systems of acquiring a vehicle.

Ownership
When you lease a vehicle, you do not own it. You must turn the vehicle in or buy it at the end of the leasing period. When you buy a car, you own it at the end of your financing term.

Initial Costs
When leasing a vehicle, your initial costs can include a security deposit, the first month’s payment, a capitalized cost reduction (like a down payment), taxes, registration and other fees/charges. When buying a car your initial costs can include purchase price or down payment, taxes, registration and other fees/charges.

Monthly Payments
Monthly lease payments should be lower than the monthly loan payments on a comparable purchased car. This is because lease payments are designed to cover the depreciation costs of the vehicle plus fees, taxes and the profit the leasing agent is looking to make. When you buy a car your payment divides up the entire purchase price of the vehicle, plus interest and other finance charges, taxes, and fees.

Early Termination
On a lease vehicle there is generally a set cost for the early termination of a lease. When buying a car you are always responsible for the entire purchase price of the car and any pay off fee for early payment of a loan.

Returning the Vehicle
When leasing a car, you return it at the end of the lease period unless you wish to buy it then. When buying a car you have the option of selling or trading the vehicle.

Future Value of the Vehicle
When leasing, the leasing company takes on the entire risk for the future resell value of the vehicle beyond any damage or excess miles which you may be responsible for. When you buy a vehicle, the entire risk for the future value of the vehicle is yours.

Miles Driven
When you lease a vehicle there is a limit to the miles you may drive without penalty, (generally averaged between 12,000 and 15,000 a year. Beyond that you will have to pay for extra miles either by negotiating more miles in your contract or paying a penalty at the end of the contract. When you buy a vehicle,. You may drive it as many miles as you like, though excessive miles may hurt the resale value of the vehicle.

Excess Wear or Vehicle Damage
If you lease, there may be penalties from your leasing company for excess wear or damage to your vehicle. If you buy the vehicle, there are no penalties although it may reduce your resale value.

End of Term
When you lease a vehicle, after you finish your payments and any penalties you give back the vehicle or buy it. If you need a vehicle, you will have to arrange to either buy or lease a car again. If you purchase a vehicle, it is yours to keep after the payments are made. You may keep driving it, sell it or trade it in on your next vehicle.

• Before looking for a rental, decide about the size, style and other needs you have for the rental. Also decide on how much you are willing to spend.
• Call several different rental agencies. Get their price estimates. Let them know you are checking among several different agents. Some agencies are more willing to deal when they realize you are a comparison shopper. Always ask for their customer satisfaction phone number if it is a national agency and get your agent’s name. Many agencies have to maintain a high level of customer satisfaction or they face sanctions from the corporate office.
• Even different locations of the same rental agency in the same city have different rates. It often depends on what cars they have available. One agent may be out of cars when one across the city is overstocked.
• Ask your travel agent or the rental car company in advance whether your driving record will be checked. Some agencies will not rent to people with bad driving records.
• Ask if there are additional fees beyond the price quoted to you. Make sure you know what the real price of your rental will be.

For More Information:

The American Society of Travel Agents car rental tips
www.astanet.com/travel/cartips.asp.

FTC’s car rental tips: www.ftc.gov/bcp/conline/pubs/autos/carrent.htm

• Flexibility is a key to good air fares. Be willing to shuffle dates, times, area airports and airlines to find the best price.
• Get on airline e-mail lists. Often they will advertise low fares to certain cities for certain times. If you know of a cheap time to travel, you can plan a trip around it. For a list of airline web sites, go to airlines.com or smilinjack.com.
• It is a good practice to call an airline every week or two once you have bought a ticket to make sure that the airfare hasn’t dropped. You will sometimes be eligible for a rebate, but only if you check.
• It is often cheaper to fly on an actual holiday such as Christmas or New Year’s Day.
• Plan as far ahead as possible. The longer in advance you can plan, the more options will be available to you. Bargain fares sell out quickly.
• Sometimes special discount fares may not award frequent flier miles. Always check on this if you are in a frequent flier program.
• Travel agents generally do not charge fees and often know of discounts that you would not find out about. Not all agents are alike though, talk to friends and find out if they have an agent they would recommend. When dealing with an agent, always ask if they know of a better deal. Ask the agent what the lowest fare is.
• Use discount package web sites such as expedia.com and priceline.com to look for good deals.
• Always ask what the restrictions are to you ticket. Some tickets may look like bargains, but can be quite costly if you miss your flight or need to switch dates.

Buying for too many people can be a real problem in the Holiday season. Not only is it expensive to buy for many people, it is time consuming. Here is a system for reducing the numbers and the hassles of mass gift giving.

Examine your list of people. Is everyone on that list expecting a present? Will they all be giving you a present? This is the season for giving. There is nothing wrong with giving many gifts, but if you can’t afford it and you don’t have time, take a serious look at who you are buying for.

Take a hard look at any out-of-town people you are buying for. Is there another way you can show them you care, such as a phone call or a personal letter?

Set up gift exchanges. If there are many people in a particular group, such as coworkers, set up an exchange so that each person buys for a single other person.

Buy multiples of a single item. Often, when you buy an item in bulk you can get great savings.

Give cards. Remember that you can satisfy many people simply by giving them a card with a personal note. If it still doesn’t feel like enough, include a small item such as a phone card or a gift certificate.

Make a shopping budget and a shopping list. Decide before you go shopping how much you will spend on each person. When possible, decide what you want to buy before you go to the stores. Take advantage of online shopping sites such as amazon.com or target.com or buy.com to peruse merchandise and make decisions before you get into the rush of shopping. You can buy from these sites too, but the important thing is to decide what you want to get each person and to make sure it fits your budget.

It is ok to change your mind if you find a great deal, but make sure it is a great deal. Don’t go out to shop purely on impulse. Always keep track of what you have spent and make sure you are holding to your budget. Remember that if you overspend early you may end up having to buy lesser presents for the people down the line.

Use debit cards whenever possible. Avoid buying on credit. Buying on credit at Christmas is a common practice, but a bad one. Christmas gifts are about love, family and friendship; they aren’t about showing off or sacrificing your future. Only spend what you can afford to spend.

If you do buy items on credit, make sure you have a plan for paying those items off quickly. Remember that it isn’t just the debt that gets you in trouble; it is the interest on the debt. The longer you have to wait to pay something off with interest, the more that item really costs.

Shop early. When you shop during the Christmas season, you are constantly fighting crowds, traffic, and time. While there are some special deals during the Christmas season, it is easier to save money when you can shop at your own speed. Buying in October and earlier also gives you the chance to space your spending over time instead of depleting your finances all at once.

Consider making gifts. Cookies, bread, photo-albums and scrapbooks make good inexpensive gifts. The key is that you give time and effort instead of spending all of your money.

Remember to enjoy the holidays. Don’t stress over gift-giving. You may not be able to get the perfect gift for everyone, but the important thing is to show you care.

Simplify the business of Payment Processing on your website with ACH systems. An Automated Clearing House network is an electronic Funds transfer system that can set up Recurring Billing Programs and make you accounting process easier.

Make a shopping budget and a shopping list. Decide before you go shopping how much you will spend on each person. When possible, decide what you want to buy before you go to the stores. Take advantage of online shopping sites such as amazon.com or target.com or buy.com to peruse merchandise and make decisions before you get into the rush of shopping. You can buy from these sites too, but the important thing is to decide what you want to get each person and to make sure it fits your budget.

It is ok to change your mind if you find a great deal, but make sure it is a great deal. Don’t go out to shop purely on impulse. Always keep track of what you have spent and make sure you are holding to your budget. Remember that if you overspend early you may end up having to buy lesser presents for the people down the line.

Use debit cards whenever possible. Avoid buying on credit. Buying on credit at Christmas is a common practice, but a bad one. Christmas gifts are about love, family and friendship; they aren’t about showing off or sacrificing your future. Only spend what you can afford to spend.

If you do buy items on credit, make sure you have a plan for paying those items off quickly. Remember that it isn’t just the debt that gets you in trouble; it is the interest on the debt. The longer you have to wait to pay something off with interest, the more that item really costs.

Shop early. When you shop during the Christmas season, you are constantly fighting crowds, traffic, and time. While there are some special deals during the Christmas season, it is easier to save money when you can shop at your own speed. Buying in October and earlier also gives you the chance to space your spending over time instead of depleting your finances all at once.

Consider making gifts. Cookies, bread, photo-albums and scrapbooks make good inexpensive gifts. The key is that you give time and effort instead of spending all of your money.

Remember to enjoy the holidays. Don’t stress over gift-giving. You may not be able to get the perfect gift for everyone, but the important thing is to show you care.

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Simplify the business of Payment Processing on your website with ACH systems. An Automated Clearing House network is an electronic Funds transfer system that can set up Recurring Billing Programs and make you accounting process easier.

Check multiple sites to find the best price. You might use a comparison sight such as Shopzilla.com, Froogle.com or Bizrate.com. These sites often offer reviews of items and merchants as well as prices. Also look for coupons at 247malls.com and MonkeyBargains.com.

If shopping through an auction vendor/merchant such as E-bay, always check their customer rating. Avoid any merchant with less than a 90% approval rating. Beware of merchants with bad reviews.

Use one specific credit card (your lowest interest rate card) for all online purchases so that if someone does get your card information, you will only have to replace one card. Internet purchases should be made using a credit card so that you can contest fraudulent charges or fees.

One exception to this rule is gift cards. Many stores allow you to shop online using gift cards that you purchase at their store. This will vastly reduce your identity theft risk but it commits you to shop in one place rather than hunt for the best price.

Only order through a secure (https://) server.

Order early so that you can take advantage of low-cost or free shipping.

Research a product before you buy it online. Know exactly what you are purchasing.