The Elderly are frequent targets of fraud. Here is a very scary article from the New York Times. I recommend sending or reading this article to all your elderly relatives.
I also suggest you check the credit of all your elderly relatives if they will let you help them. See the blog article regarding Identity Theft.
I would also place all my elderly relatives on the Do Not Call List which should eliminate most solicitation calls. Telemarketing calls are a way many scammers bilk the elderly.
Since mail can easily be stolen, a secured (locking) mailbox is a great idea. I would also register all of my elderly relatives on the no credit card solicitation list. This list is legitamite and is endorsed by the Federal Trade Commission.
In fact, it would be smart to implement many of these ideas for yourself. A little time now could save you from becoming an identity theft victim
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Monday, May 21, 2007
Tuesday, December 12, 2006
Credit Cards and Car Loans Decrease Your Financial Security
Debt is a tricky thing because sometimes it’s good and sometimes it’s bad. Most financial messes are caused by poor debt management or just lousy risk management. Over the next two weeks, I’ll share a few basic rules to keep you out of trouble.
Rule#1: Never finance the purchase of a depreciating asset.
In other words, never secure a loan to buy anything that falls in. For instance, a car is a depreciating asset. It declines substantially in value the moment you drive it off the showroom floor and yet you are paying interest and financing charges making the car even more expensive. Instead, the best way to purchase a car is to save the money now while you are still driving your old one. Financing an auto purchase with a five year loan will cause you to pay 20% more for a car due to the interest (assuming 7% interest rate). If you save for the car over five years (invested in a money market account earning 5%) it will cost 12% less because of the interest you have earned.
If you finance clothes, furniture or a nice lifestyle using your credit cards the costs are even higher. That $30 sweater may end up costing you well over $100 dollars. It is risky to extend yourself using credit cards. What if you can’t make the payments? The interest rate triples overnight and not just on the card you are delinquent but all of them. Most of America is only three pay checks away from default and eventual homelessness. Minimize risk by minimizing debt. Be smart, plan for a rainy day by saving and keeping your lifestyle expenses in check.
Rule#1: Never finance the purchase of a depreciating asset.
In other words, never secure a loan to buy anything that falls in. For instance, a car is a depreciating asset. It declines substantially in value the moment you drive it off the showroom floor and yet you are paying interest and financing charges making the car even more expensive. Instead, the best way to purchase a car is to save the money now while you are still driving your old one. Financing an auto purchase with a five year loan will cause you to pay 20% more for a car due to the interest (assuming 7% interest rate). If you save for the car over five years (invested in a money market account earning 5%) it will cost 12% less because of the interest you have earned.
If you finance clothes, furniture or a nice lifestyle using your credit cards the costs are even higher. That $30 sweater may end up costing you well over $100 dollars. It is risky to extend yourself using credit cards. What if you can’t make the payments? The interest rate triples overnight and not just on the card you are delinquent but all of them. Most of America is only three pay checks away from default and eventual homelessness. Minimize risk by minimizing debt. Be smart, plan for a rainy day by saving and keeping your lifestyle expenses in check.
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