Will the New Consumer Privacy Bill Protect You?

Legislation that would establish new nationwide privacy protections for American consumers was introduced by a group of high-profile Democratic senators on Thursday, including Pat Leahy (Vermont) and Elizabeth Warren (Massachusetts). The Consumer Privacy Protection Act would establish federal standards for notification of consumers when their data is lost or stolen, greatly expand the definition of private information beyond financial data, and allow existing state privacy laws to remain in force. Geolocation data and images would be covered by its data leak disclosure rules, for example.

“Today, data security is not just about protecting our identities and our bank accounts, it is about protecting our privacy. Americans want to know not just that their bank account and credit cards are safe and secure, they want to know that their emails and their private pictures are protected as well,” Sen. Leahy said. “Companies who benefit financially from our personal information should be obligated to take steps to keep it safe, and to notify us when those protections have failed.”

Consumer groups cheered the proposal, saying it offered a fresh approach to consumer privacy.

“This is a step forward. This is the first time you get something new in federal legislation. Usually it scales back (protections) in state law,” said Justin Brookman, director of consumer privacy at the Center for Democracy and Technology. “It’s good to see some new thinking on the issue, something that actually adds new protections for a lot of people.”

“Everyone from the NSA to the local grocer has become a consumer of our data. So many pieces of our data are being collected, stored, shared and sold, either without our knowledge or ability to understand the process,” said Adam Levin, privacy expert and chairman and founder of Credit.com. “It is long overdue that we expand the definition of ‘personally identifying information’ as well as the protections necessary to safeguard our privacy and data security and require quick notification when our PII is exposed.”

The legislation would require social media firms or cloud email providers to notify consumers if their accounts are compromised, Brookman said. Currently, most disclosure rules apply only to financial information such as credit card numbers.

The legislation comes on the heels of a similar White House proposal called “The Consumer Privacy Bill of Rights Act of 2015,” but goes several steps further than the administration’s proposal, said Susan Grant of the Consumer Federation of America. The White House proposal would allow federal law to supersede state laws, potentially diminishing consumer rights. It also requires demonstration of actual harm before requiring notice.

“(We believe) that federal legislation will only be helpful to consumers if it provides them with greater privacy and security protection than they have today. Most of the bills that we have seen in Congress would actually weaken existing consumer rights and the ability of state and federal agencies to enforce them,” Grant said. “(This bill) takes the right approach, requiring reasonable security measures, providing strong consumer protection and enforcement, and only pre-empting state laws to the extent that they provide less stringent protection.”

Most significant: The legislation creates entire new classes of protected information. Private information is divided into seven categories. Compromise of any one of them would require companies to notify consumers. They are:

1. Social Security numbers and other government-issued identification numbers;
2. Financial account information, including credit card numbers and bank accounts;
3. Online usernames and passwords, including email addresses and passwords;
4. Unique biometric data, including fingerprints;
5. Information about a person’s physical and mental health;
6. Information about a person’s geolocation;
7. Access to private digital photographs and videos.

Leahy has repeatedly proposed legislation since 2005 that would establish a nationwide notification standard called the Personal Data Privacy and Security Act; it has not passed. While co-sponsors of this new bill include Al Franken (Minn.), Richard Blumenthal (Conn.), Ron Wyden (Ore.) and Edward J. Markey (Mass.), there are, notably, no Republican co-sponsors. That probably dooms the bill, says Brookman.

“They didn’t get a GOP co-sponsor, and that’s not a great sign. Still, having the bill out there is good for dialog on the issue,” he said.

Related Articles

• Identity Theft: What You Need to Know
• 3 Dumb Things You Can Do With Email
• How Can You Tell If Your Identity Has Been Stolen?

This article originally appeared on Credit.com.

This article by Bob Sullivan was distributed by the Personal Finance Syndication Network.

NC Senator Michael Lee Article Rattled Some Debt Collection Feathers

Yesterday I published this article about proposed changes to pursing debtors in North Carolina over purchased debt.

That would have been the story, done and dusted. But today I awoke to find InsideARM, an accounts receivable trade publication, leveled some objections at my opinion piece.

InsideARM said, “Rhode calls Lee’s bill, “idiotic,” and “ill-advised, ill-conceived and unwarranted.” Other than potentially calling a state Senator an idiot in his headline, he also characterizes Lee as “ill informed” in the piece.” – Source

They also said, “Rhode also calls another Senator who defended the bill “clueless.” The article’s main contention, that Lee is a “debt collection idiot” is based partly on selective editing.”

InsideARM also stated, “Proponents of the measure argue that North Carolina’s infamous 2009 law targeting debt buyer collection lawsuits went too far, making the collection of legitimate debt onerous in the state. Most in the ARM industry consider the rules to be among the most restrictive in the country.”

But where the objections to the article missed the target was the fact the proposed changes to the law appear to be driven to ease the burden on bad debt documentation and not fairness to both consumers and debt buyers.

Even the North Carolina Attorney General’s office feel S.B. 511 is unnecessary. The Raleigh, NC based newspaper, News & Observer, said, “But Kevin Anderson, who is in charge of the consumer protection division in the state Attorney General’s office, said the 2009 law has been effective in stemming collection abuses. Those abuses included lawsuits against consumers who actually had paid their bills in full or who couldn’t even determine, based on the scanty evidence presented in the complaint, whether they had paid or successfully disputed the bill. The debt at issue can be years old by the time the debt buyers acquire them.” “The rest of the country that hasn’t passed laws like this are still struggling with the problem,” he said. “We would caution against rolling back some of these protections.” – Source

Similar opinions were offered up by the Durham, NC located Center for Responsible Lending, as well. The same N&O article says, “Ellen Harnick, senior policy counsel for the Center for Responsible Lending, complained the debt buyers simply aren’t willing to pay “a little more” for the underlying documentation required by the 2009 law.

That law, she said, was “passed by a unanimous vote in the Senate because, on a bipartisan basis, people were troubled on behalf of taxpayers about what was happening in the courts.”

Harnick also argued that the bill shifts the burden of proof from the debt buyer that brings a lawsuit to the consumer.”

Histrionics aside, I continue to miss the benefit to consumers by removing the current legal requirements bad debt buyers face in North Carolina before going after consumers. The current law requires the debt owner must know the “amount of the original debt” and also have a copy of the “contract, charge-off statement, or other writing evidencing the original debt, which must contain a signature of the defendant. If a claim is based on credit card debt and no such signed writing evidencing the original debt ever existed, then copies of documents generated when the credit card was actually used must be attached debt.”

In North Carolina it would be silly to buy a home or car without documentation and evidence the purchase is legitimate or know the identity of the property and have it well documented. So why does it not make logical sense to make sure purchased bad debt can be authoritatively documented as well?

Apparently the current law in place in North Carolina makes bad debt buyers feel the law “went too far, making the collection of legitimate debt onerous in the state,” as InsideARM says. But it is unclear how the law prevents bad debt buyers from charging ahead to sue and win lawsuits over debt owed as long as they have the basic documentation to prove the validity of the debt. And being able to validate the debt is an issue close to the Consumer Financial Protection Bureau as well.

InsideARM said, “Rhode contends that Lee may be a debt buyer himself, because his law firm’s website states, “The firm focuses on…debt acquisition.” What Rhode omits is the fact that Lee’s practice focuses almost entirely on commercial real estate, and the unedited passage from Lee’s site reads, “The firm focuses on complex commercial real estate finance, debt acquisition and development matters as well as complicated entitlement and zoning cases.”

For the record, I make no such argument that Lee or his law firm is a bad debt buyer. They simply felt it was an important enough skill to mention it in their firm description. If it is not something they assist with then why mention it? – Source

In my mind the only reason Lee’s experience as an attorney with purchased debt should be a factor is a hopeful awareness about the lack of proper documentation currently owned by bad debt buyers and the reality most consumers don’t defend themselves against unsupported collection lawsuits.

The debt collection industry might be up-in-arms about my opinion S.B. 511 is ill-advised, ill-conceived, and unwarranted but surely making sure all of the documentation validating the debt is on hand makes for a slam dunk lawsuit by the current debt owner to recover money owed them. NC Senator Harry Brown was quoted as saying, “I think the key point of this is, this is debt that someone has gone out and decided not to pay.”

To which I must humbly disagree. I think the key point to the desired change in the law is to relax a requirement for bad debt buyers to have sufficient documentation and data on hand to prove the debt is valid as the CFPB advises consumers to do when approached over uncertain debt.

Here is what the CFPB advises consumers to ask for from bad debt buyers attempting to collect:

“The name and address of the creditor to whom the debt is currently owed, the account number used by that creditor, and the amount owed.

• If this debt started with a different creditor, provide the name and address of the original creditor, the account number used by that creditor, and the amount owed to that creditor at the time it was transferred. When you identify the original creditor, please provide any other name by which I might know them, if that is different from the official name. In addition, tell me when the current creditor obtained the debt and who the current creditor obtained it from.
• Provide verification and documentation that there is a valid basis for claiming that I am required to pay the debt to the current creditor. For example, can you provide a copy of the written agreement that created my original requirement to pay?
• If you are asking that I pay a debt that somebody else is or was required to pay, identify that person. Provide verification and documentation about why this is a debt that I am required to pay.

The amount and age of the debt, including:

• A copy of the last billing statement sent to me by the original creditor.
• State the amount of the debt when you obtained it, and when that was.
• If there have been any additional interest, fees or charges added since the last billing statement from the original creditor, provide an itemization showing the dates and amount of each added amount. In addition, explain how the added interest, fees or other charges are expressly authorized by the agreement creating the debt or are permitted by law.
• If there have been any payments or other reductions since the last billing statement from the original creditor, provide an itemization showing the dates and amount of each of them.
• If there have been any other changes or adjustments since the last billing statement from the original creditor, please provide full verification and documentation of the amount you are trying to collect. Explain how that amount was calculated. In addition, explain how the other changes or adjustments are expressly authorized by the agreement creating the debt or permitted by law.
• Tell me when the creditor claims this debt became due and when it became delinquent.
• Identify the date of the last payment made on this account.
• Have you made a determination that this debt is within the statute of limitations applicable to it? Tell me when you think the statute of limitations expires for this debt, and how you determined that.” – Source

And it does not stop here with the CFPB. They’ve also said, “The CFPB is concerned that debt collectors do not always have adequate or accurate paperwork or data to support their claims about a consumer’s indebtedness. This lack of information can make it harder for the debt collector to provide the consumer with information to identify the debt or resolve disputes.” – Source

It seems the CFPB feels consumers are entitled to a lot more information than even the current North Carolina law requires. By rolling back the law using S.B. 511 it seems to me it puts bad debt buyers in a worse position moving forward in the face of tougher debt data requirements to almost certainly come. And for me, that’s idiotic for an industry based on data and documentation.

This article by Steve Rhode first appeared on Get Out of Debt and was distributed by the Personal Finance Syndication Network.

Bernie Sanders Promises to Fight Income Inequality With Presidential Run

Bernie Sanders, a Vermont senator, announced Wednesday that he is running for president as a Democrat, reports The Associated Press. Like other presidential hopefuls who have announced plans to run, Sanders is taking a heavy focus on economic issues. He pledges to fight what he calls “obscene levels” of income disparity between the ultra-rich and the middle class, and to reform campaign financing rules.

Describing himself as a “democratic socialist,” Sanders’ stance on many issues (particularly economic) is more liberal than that of Hillary Clinton, his main opponent for the Democratic presidential candidacy.

Related: How Hillary Clinton as President Could Affect Your Paycheck

Bernie Sanders: 99% of New Income Goes to the Top 1%

Worries of income inequality are not new. Middle-class Americans’ wealth took a big hit during the Great Recession, according to 2014 Pew Research Center analysis, and though the economy has recovered, wage growth has largely remained stagnant.

“What we’re seeing…right now is that for 40 years, the American middle class has been disappearing,” Sanders said on an April 19 appearance on Fox News Sunday. “Millions of people are working longer hours for lower wages despite a huge increase in technology and productivity. And what we have seen during that period is a massive transfer of trillions of dollars from the middle class to the top one-tenth of 1 percent of America — massive wealth and income inequality, where you have 99 percent of all new income today going to the top 1 percent.”

Some of Sanders’ remarks are backed by data featured in a recent article published by The New York Times. According to the Times, the richest 1 percent of Americans’ average income grew “from $871,100 in 2009 to $968,000 over 2012 and 2013.” Meanwhile, the bottom 99 percent’s average income decreased slightly from $44,000 to $43,900.

To fight this wealth inequality, Sanders plans to raise taxes on the rich and corporations, oppose free-trade agreements and closely regulate the banking industry, reports The Associated Press. Sanders will also propose plans to offer tuition-free college education at public colleges and universities.

Photo credit: Albert H. Teich / Shutterstock.com

This article originally appeared on GOBankingRates.com: Bernie Sanders Promises to Fight Income Inequality With Presidential Run

This article by Elyssa Kirkham first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

Court Halts Mortgage Relief Operation that Targeted Homeowners Facing Foreclosure

Some People Lost Their Homes: Paid Defendants Instead of Making Mortgage Payments

At the Federal Trade Commission’s request, a federal court halted a sham operation that allegedly told financially distressed homeowners it would help get their mortgages modified, but instead effectively stole their mortgage payments, leading some to foreclosure and bankruptcy. The FTC seeks to permanently stop the scheme and its participants’ illegal practices. It also filed a contempt action against one of the scheme’s principals, Brian Pacios, who is under a previous court order that prohibited him from mortgage relief activities.

“These defendants stole mortgage payments from struggling homeowners, and they pretended to be a nonprofit working with the government,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “We’ll continue to shut down shameful mortgage frauds like this one.”

According to the FTC’s complaint, the defendants, sometimes doing business as HOPE Services, and more recently as HAMP Services, targeted consumers facing foreclosure, and especially those who had failed to get any relief from their lenders. Pretending to be “nonprofit” with government ties, they sent mail bearing what looked like an official government seal, and indicated that the recipients might be eligible for a “New 2014 Home Affordable Modification Program” (HAMP 2).

The defendants called the program “an aggressive update to Obama’s original modification program,” and stated that “[y]our bank is now incentivized by the government to lower your interest rate . . .”

The defendants falsely claimed they had a high success rate, special contacts who would help get loan terms modified, and an ability to succeed even when consumers had failed. After obtaining consumers’ financial information, they told them they were “preliminarily approved” and falsely claimed they would submit consumers’ loan modification applications to the U.S. Department of Housing and Urban Development, the Neighborhood Assistance Corporation of America, and the “Making Home Affordable” (MHA) program. The MHA application form they sent consumers excluded the page that warns, “BEWARE OF FORECLOSURE RESCUE SCAMS,” and “never make your mortgage payments to anyone other than your mortgage company without their approval.”

Later, the defendants falsely told consumers they were approved for a low interest rate and monthly payments significantly lower than their current payment, and that after making three monthly trial payments, and often a fee to reinstate a defaulted loan, they would get a loan modification and be safe from foreclosure. They also told consumers not to speak with their lender or an attorney.

In reality, homeowners who made the payments did not have their mortgages modified, and their lenders never received their trial payments, the FTC alleged. Instead, they were contacted by an “Advocacy Department” run by one of the defendants, Denny Lake, and told that the department would get them an even better loan modification than the one purportedly obtained through MHA, according to the FTC’s complaint. 

But the “Advocacy Department” was just another trick designed to make sure consumers continued to make all of the monthly trial payments. When consumers raised concerns about continuing foreclosure warnings, sale date notices, and even court dates, they were told their loan modification was being processed or nearly completed.

By keeping consumers on the hook for months, the defendants doubled, tripled, or quadrupled consumers’ trial payments, the FTC alleged.  They told consumers they would put these payments in escrow accounts and eventually pay off consumers’ lenders. In fact, the defendants simply took the money for themselves. As a result, some consumers lost their homes, and most consumers incurred additional penalties and interest as they fell further behind on their mortgages.

The defendants include Chad Caldaronello, also known as Chad Carlson and Chad Johnson; C.C. Enterprises Inc., doing business as HOPE Services, Retention Divisions, and Trust Payment Center; Justin Moreira, a/k/a Justin Mason, Justin King and Justin Smith; Derek Nelson, a/k/a Dereck Wilson; D.N. Marketing Inc., d/b/a HAMP Services and Trial Payment Processing; and Brian Pacios, a/k/a Brian Berry and Brian Kelly. They are charged with violating the FTC Act, the FTC’s Mortgage Assistance Relief Services Rule (MARS), and its Telemarketing Sales Rule (TSR).

Denny Lake, d/b/a JD United, Advocacy Department, Advocacy Division, and Advocacy Agency, is charged with knowing or consciously avoiding knowing the other defendants were violating the MARS and the TSR. A relief defendant, Cortney Gonsalves, is charged with holding money and assets she received from the scam.

To learn how to avoid mortgage and foreclosure rescue scams, see Home Loans.

The Commission vote approving the complaint was 5-0. The U.S. District Court for the Central District of California entered a temporary restraining order against the defendants on April 15, 2015.

This article by the Federal Trade Commission was distributed by the Personal Finance Syndication Network.

My Mother is on Medicaid and Bank of America is Owed Money

Question:

Dear Steve,

Hi – I have a question – my mother is in a nursing home, Medicaid pays for the home – she must turn over her social security and small pension to them each month. She has no money – she has a credit card from Bank of America with $3500-$4000 on it – she is the only user of the card, I am not listed as an authorized user – I have been making the minimum payments – I can no longer afford to do this – what should I do?

Thank you.

Beth

Answer:

Dear Beth,

If you stop paying then Bank of America may try to collect from her but if she has no assets then there is nothing to go after. Even if they decided to sue her and they won, it sounds as if your mother is what people call judgment proof. This just means there are no assets to go after to try and collect the judgment. Typically, public benefits and Social Security are exempt from being garnished.

Alternatively, your mother could file bankruptcy to legally terminate the debt in about 90 days. In this case she would not face any possible tax liability from the charge-off of the debt and it would stop any future collection attempts.

The cost of filing bankruptcy might be around $1,900 when all is said and done but the rapid elimination of the debt and the ensuing quiet might have some value as well for you and your mother. That is a question you will have to consider.

If bankruptcy sounds like the better way to make your mother’s future days better without the threat of the debt hanging over her, then I would suggest you talk to a local bankruptcy attorney and discuss her specific situation. Most bankruptcy attorneys will gladly talk to you for free.

Before I go I wanted to leave you with three easy action items you jump on right now to address your situation. Just click here.

Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask, just click here and ask away.

If you’d like to stay posted on all the latest get out of debt news and scam alerts, subscribe to my free newsletter.

This article by Steve Rhode first appeared on Get Out of Debt and was distributed by the Personal Finance Syndication Network.

After the SendGrid Hack, Beware of Phishing Scams

Email has become a critical tool for transactions — from the sending of Uber receipts to delivery of hotel coupons. Naturally, companies that send mission-critical consumer emails often turn to third-party firms like SendGrid to manage the delivery of millions of messages. Of course, as third parties that maintain trusted relationships with both consumers and corporations, such email providers are an obvious target for hackers. Imagine the damage a criminal could do if he could believably pose as a giant tech firm and send out emails to all consumers? Such emails could ask millions of users to reset their passwords, for example, or update their credit card information, or even send bitcoins.

Such attacks are now under way. SendGrid, which has 180,000 customers and sends emails for giants like Uber and Spotify, said this week that a hacker who broke into company systems earlier this month did more damage than initially believed.

On April 9, the firm confirmed to The New York Times that a Bitcoin-related client account had been compromised and used to send phishing emails to its customers. But on Monday, SendGrid said additional investigation revealed that one of its own employees’ accounts had been compromised and used to access several SendGrid systems in February and March.

“These systems contained usernames, email addresses, and . . . passwords for SendGrid customer and employee accounts,” the firm said on its blog. “In addition, evidence suggests that the cyber criminal accessed servers that contained some of our customers’ recipient email lists/addresses and customer contact information.”

SendGrid says it has not found evidence that customer lists were stolen, but it “cannot rule out the possibility.”

The firm is urging its clients to change passwords and enable two-factor authentication.

It takes only a little creativity to imagine all the damage a hacker who managed to steal customer email lists and credentials could do. But a harrowing tale told by cloud provider Chunkhost.com on its website offers a cautionary tale. Co-owner Nate Daiger wrote last year that a hacker talked SendGrid into changing its point of contact email from support@chunkhost.com to support@chunkhost.info, then used that change to retrieve a password reset email on two bitcoin-using clients. Fortunately, both clients used two-factor authentication, Daiger wrote.

“Our customers’ accounts were protected and the attackers were stymied. But it was really close,” he wrote.

Corporate clients who use third-party email services should be on notice: hackers are actively targeting such accounts. Meanwhile, here’s an important notice to consumers: You can’t believe everything you read, even an email that appears to come from a company you trust. Hackers can sent out very believable-looking phishing emails with requests for password changes or payment information. You should always be skeptical of such emails, but now, you have new reasons to be so. When feasible, avoid clicking on links in emails and instead visit websites directly by typing the site address into your web browser’s address bar.

If you have given up sensitive information to a phisher, it’s important to take steps to control the damage. If it’s an account number, report your account info as stolen so the bank or card issuer can close the account, or take similar steps to stop or undo any instances of fraud. Keep a close eye on your account statements, and check your credit reports and credit scores for signs that someone has opened an account in your name, or is using an existing one. You can get your credit reports for free every year from AnnualCreditReport.com, and you can get your credit scores for free from several sources, including Credit.com.

Related Articles

• Identity Theft: What You Need to Know
• 3 Dumb Things You Can Do With Email
• How Can You Tell If Your Identity Has Been Stolen?

This article originally appeared on Credit.com.

This article by Bob Sullivan was distributed by the Personal Finance Syndication Network.

Retirement Account Balances Reach a Record High

It’s no secret Americans aren’t great at saving for retirement. Actually, the research on that is pretty startling, but it seems people who are saving might be getting better at it. Retirement account balances have hit record highs and contributions have increased, according to an analysis from Fidelity Investments, one of the largest mutual fund companies in the country.

At the end of quarter one 2015, the average Fidelity 401(k) balance was $91,800, up 3.6% from last year, and the average individual retirement account balance was a record high of $94,100. Among 401(k) account holders, a record 23% increased their contribution from 2014.

While it’s great to have a snapshot of how some workers are increasing their commitment to saving for retirement, national savings figures fall incredibly short of the Fidelity numbers. Among working-age households, 45.3% do not have retirement accounts, according to a January 2015 report from the National Institute on Retirement Security. The figures are based on 2013 data. That’s 39.6 million households. Americans have an average of $2,500 in their retirement accounts, an average brought down significantly by the large portion of people without any savings.

There are lots of reasons this is concerning, but on an individual basis, reaching retirement age without adequate savings can have dire financial consequences. A lack of savings may lead you into debt or prevent you from paying bills, both of which can damage your credit. You never know when you might need something that requires a credit check, which is part of why it’s so important to plan for long-term financial and credit stability.

The credit implications are important — you can keep an eye on your standing by getting a free credit report summary each month from Credit.com — but saving so you can live comfortably and avoid debt can have a major impact on your overall well-being. You may not be anywhere near that average 401(k) balance of $91,800, but every little bit of savings can mean a lot for your future.

Related Articles

• What’s a Good Credit Score?
• What’s a Bad Credit Score?
• How Credit Impacts Your Day-to-Day Life

This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

Despite Legal Uncertainties, Some Pot Dispensaries Accept Credit Cards

It’s been more than a year since legal recreational pot sales started in Colorado, and as much as dispensary owners enjoy the booming business, they’re sick of swimming in cash. Though the Department of Justice released regulations last year allowing banks to accept money from legal dispensaries, it’s still a federal crime — the announcement that the DOJ won’t pursue institutions that process legal pot money hasn’t been enough to make everyone comfortable.

It seems some Colorado business owners have run out of patience waiting for the banking industry to get on board with legal cannabis sales. According to a poll of 78 state-licensed dispensaries in the Denver area conducted by FOX31, 27 (or 47%) of them would be “willing to accept Visa or MasterCard as payment.”

Some of them may be working with financial institutions that have decided to accept money from legal cannabis sales, despite federal laws, but they’re probably trying to downplay or conceal the nature of the business, FOX31’s investigation suggests. Credit card transactions conducted at legal dispensaries produced receipts with company names like “AJS Holdings LLC” and “Indoor Garden Products.” Even though the federal government has said it will stand by and let legal dispensaries use the banking system and the credit card transactions it enables, that hasn’t erased the concerns over Drug Enforcement Agency audits for money laundering.

Given that credit card processing at marijuana dispensaries remains risky, it’s interesting that nearly half of the companies polled by FOX31 said they’d accept credit cards. (It was unclear from the story if the dispensaries polled actually have the ability to process such payments or if they’d merely like to.)

If it’s becoming more common for dispensaries to accept credit card payments, that’s both good and bad for consumers. The good thing is the ability to pay as you prefer and allow you to walk into a dispensary without a bunch of cash in your wallet. On the other hand, using a credit card may lead consumers to spend more than they can afford, potentially accumulating credit card debt. Then again, all consumer goods pose that threat — the important thing is to spend within your means, whether you’re buying indoor gardening products or “Indoor Gardening Products.” What you put on your credit card doesn’t matter to your financial and credit stability, but how much you charge and how you manage that balance does.

Related Articles

• 5 Habits of Successful Savers & Investors
• What’s a Bad Credit Score?
• How Credit Impacts Your Day-to-Day Life

This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

13 States Where People Have the Best Credit

Good credit is synonymous with opportunity: It allows you greater access to things like apartments, auto loans and mortgages, not to mention more affordable interest rates on credit products. Unfortunately, the majority of U.S. consumers have what’s called a subprime credit score, meaning their credit history makes it difficult or impossible to get some services or receive low interest rates on financing.

In fact, only in 13 states do the majority of consumers have near prime, prime or super prime credit, according to TransUnion TransRisk Score data from the third quarter of 2014. The TransRisk Score assesses consumers using a scale of 150 to 934, with anything below 700 considered subprime. Nationwide, 55.6% of consumers had subprime credit in Q3 of 2014, and Mississippi had the most consumers with poor or bad credit: 69.2% fell into the subprime or lower category, according to an illustration from the Assets & Opportunity Scorecard produced by the Corporation for Enterprise Development.

While most states are dominated by subprime borrowers, that’s not the case everywhere. Here are the 13 states where consumers with near prime, prime and superprime credit (scores of 700 and above on the 150 to 934 TransRisk Score scale) make up the majority of consumers with credit scores:

13. (tie) Connecticut
Consumers with near prime or better credit: 51.3%
Average credit card debt: $14,147
Borrowers 90+ days past due: 3.25%

New Hampshire
Percentage of consumers with near prime or better credit: 51.3%
Average credit card debt per borrower: $11,269
Percentage of borrowers 90+ days past due on any debt: 2.62%

11. Washington
Consumers with near prime or better credit: 51.5%
Average credit card debt: $11,670
Borrowers 90+ days past due: 2.52%

10. Wisconsin
Consumers with near prime or better credit: 51.6%
Average credit card debt: $7,420
Borrowers 90+ days past due: 2.54%

9. Montana
Consumers with near prime or better credit: 52.5%
Average credit card debt: $7,722
Borrowers 90+ days past due: 2.54%

8. Massachusetts
Consumers with near prime or better credit: 53.2%
Average credit card debt: $12,151
Borrowers 90+ days past due: 2.69%

7. Hawaii
Consumers with near prime or better credit: 53.6%
Average credit card debt: $12,673
Borrowers 90+ days past due: 2.4%

6. Nebraska
Consumers with near prime or better credit: 53.7%
Average credit card debt: $6,424
Borrowers 90+ days past due: 2.26%

5. Iowa
Consumers with near prime or better credit: 53.9%
Average credit card debt: $5,887
Borrowers 90+ days past due: 2.78%

4. Vermont
Consumers with near prime or better credit: 54.2%
Average credit card debt: $9,822
Borrowers 90+ days past due: 2.62%

3. South Dakota
Consumers with near prime or better credit: 55%
Average credit card debt: $6,630
Borrowers 90+ days past due: 2.43%

2. Minnesota
Consumers with near prime or better credit: 57.1%
Average credit card debt: $9,277
Borrowers 90+ days past due: 2.47%

1. North Dakota
Consumers with near prime or better credit: 57.2%
Average credit card debt: $6,005
Borrowers 90+ days past due: 2.11%

Payment history and debt amount are two of the most influential factors that determine credit scores, which is why we included some related data in these state rankings. Keep in mind that the debt amount factor includes how much of your available credit you use, not just how high your balances are. Even if you have little debt, if you have little available credit on your credit cards, your credit score may suffer. To see how your payment history, debt amount and other behaviors affect your credit standing, you can check out your free credit report summary on Credit.com.

Related Articles

• What’s a Good Credit Score?
• What’s a Bad Credit Score?
• How Credit Impacts Your Day-to-Day Life

This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

Homeownership Rate Sinks to Lowest Level Since 1993

The percentage of U.S. residents who own their homes is at the lowest point it has been for more than 20 years, according to a report from the U.S. Census Bureau. In the first quarter of 2015, 63.8% of people owned their housing units, down from 64.8% at the start of 2014 (these figures are seasonally adjusted).

The Census data includes decades of quarterly, seasonally adjusted homeownership rates, and those rates have not fallen below 64% since 1993. The rate was 64% in the fourth quarter of 2014. The margin of error for quarterly homeownership rates is 0.3%, meaning the change from the end of last year to the start of this year wasn’t statistically significant. The year-over-year change is.

Homeownership peaked in the second quarter of 2004 at 69.4% and has generally declined since. Looking just at first-quarter data, the homeownership rate has steadily fallen from a high of 69.2% in 2005. Among consumers younger than 35, homeownership is far less common than it was six years ago, when nearly 40% of that age group were homeowners. As of last quarter, not quite 35% of them are (not seasonally adjusted). The greatest decline in homeownership over the last year came in the 35- to 44-years-old category: It fell from 60.7% in quarter one 2014 to 58.4% this year.

There are many reasons homeownership rates have fallen. Though foreclosure rates have fallen in recent years, they still remain historically high. Former homeowners who went through foreclosure likely haven’t yet been able to return to the real estate market, which partially accounts for the higher number of renters.

On top of that, mortgages aren’t easy to get. Lending standards have eased a bit since the recession, but even consumers with decent credit are still finding it difficult to secure home loans. Given that climate, the most control consumers have over attaining their dream of owning a home is to get their credit in good shape (you can see where you stand by getting a free credit report summary on Credit.com). Coupled with a solid financial standing and an affordable market, a credit history of on-time payments and well-managed debt can improve consumers’ chances of loan approval.

Related Articles

• Why You Should Check Your Credit Before Buying a Home
• How to Get Pre-Approved for a Mortgage
• How to Search for Your Next Home

This article originally appeared on Credit.com.

This article by Christine DiGangi was distributed by the Personal Finance Syndication Network.

Can Wired Cities Outsmart Hackers?

A monster storm is on a collision course with New York City and an evacuation is under way. The streets are clogged, and then it happens. Every traffic light turns red. Within minutes, the world’s largest polished diamond, the Cullinan I, on loan to the Metropolitan Museum of Art from the collection of the British Crown Jewels, is whisked away by helicopter.

While this may sound like the elevator pitch for an action film, the possibility of such a scenario is more fact than fiction these days.

Cesar Cerrudo is the chief technology officer at IOActive Labs, a global security firm that assesses hardware, software and wetware (that is, the human factor) for enterprises and municipalities. A year ago, Cerrudo made waves when he demonstrated how 200,000 traffic sensors located in major cities around the United States—including New York, Seattle, Washington, and San Francisco—as well as in the UK, France and Australia, could be disabled or reprogrammed because the Sensys Networks sensors system that regulated them was not secure. According to ThreatPost, these sensors “accepted software modifications without double-checking the code’s integrity.” Translation: there was a vulnerability that made it possible for hackers to reprogram traffic lights and snarl traffic.

A widely reported discovery, first discussed last year at a black hat hacker convention in Amsterdam, highlighted a more alarming scenario than the attack of the zombie traffic lights. Researchers Javier Vazquez Vidal and Alberto Garcia Illera found that it was possible, through a simple reverse engineering approach to smart meters, for a hacker to order a citywide blackout.

The vast array of attacks made possible by the introduction of smart systems are many. With every innovation, a city’s attackable surface grows. The boon of smart systems brings with it the need for responsibility. It is critical for municipalities to ensure that these systems are secure. Unfortunately, there are signs out there of a responsibility gap.

According to the New York Times, Cerrudo successfully hacked the same traffic sensors that made news last year, this time in San Francisco, despite reports that the vulnerabilities had been addressed after the initial flurry of coverage when he revealed the problem a year ago. It bears saying the obvious here: Cerrudo’s findings are alarming. With the information of how to hack the Sensys sensors out there, was San Francisco’s security protocol nothing more than dumb luck? How could it be that the same issue was imperiling the safety of San Franciscans?

The integration of smart technology into municipalities is a new thing. The same Times article notes that the market for smart city technology is expected to reach $1 trillion by 2020. As with all new technology, compromises are not only possible, but perhaps even likely, in the beginning. The problem here is that we’re talking about large, populous cities. As they become ever more wired, they become more vulnerable.

The issue is not dissimilar from the one facing private sector leaders. Organizations must constantly defend against a barrage of advanced and persistent attacks from an ever-growing phalanx of highly sophisticated hackers. Some of them work alone. Still others are organized into squadrons recruited or sponsored by foreign powers—as we have seen with the North Korean attack on Sony Pictures and the mega-breach of Anthem suspected to be at the hand of Chinese hackers—for a variety of purposes, none of them good.

The vulnerabilities are numerous, ranging from the power grid to the water supply to the ability to transport food and other necessities to where they are needed. As Cerrudo told the Times, “The current attack surface for cities is huge and wide open to attack. This is a real and immediate danger.”

The solution, however, may not be out of reach. As with the geometric expansion of the Internet of Things market, there is a simple problem here: lack of familiarity at the user level—where human error is always a factor—with proper security protocols. Those protocols are no secret: encryption, long and strong password protection, and multi-factor authentication for users with security clearance.

While the above-noted protocols are not a panacea for the problems that face our incipiently smart cities, they will go a long way towards addressing security hazards and pitfalls.

Cerrudo has also advocated the creation of computer emergency response teams “to address security incidents, coordinate responses and share threat information with other cities.” While CERTs are crucial, the creation of a chief information security officer role in municipal government to quarterback security initiatives and direct defense in a coordinated way may be even more crucial to the problem-sets that arise from our new smart cities. In the pioneering days of the smart city, there are steps that municipalities can take to keep their cities running like clockwork.

It starts with a proactive approach to security.

This story is an Op/Ed contribution to Credit.com and does not necessarily represent the views of the company or its partners.

Related Articles

• Identity Theft: What You Need to Know
• 3 Dumb Things You Can Do With Email
• How Credit Impacts Your Day-to-Day Life

This article originally appeared on Credit.com.

This article by Adam Levin was distributed by the Personal Finance Syndication Network.

20 Ways to Pay Less at Costco

Saving money at Costco goes well beyond scoring free food samples. There are plenty of little-known Costco shopping hacks that can save you big bucks at the register — and help you avoid the notorious spending hangover that often follows a visit to one of America’s favorite warehouse superstores. Here are 20 ways to make your Costco membership worthwhile.

Related: Is a Costco Membership Worth It?

Photo: Alastair Wallace / Shutterstock.com

1. Split bulk items with a friend.

If you are single or live in a small space, it’s probably hard to justify purchasing and storing a package of 30 rolls of toilet paper, even if it is only $19.50. But listen: that stuff is even more expensive in regular grocery or big box stores. Head to Costco with a friend to split up bulk packages of essentials and the costs — it’s absolutely worth the savings.

Photo: Ted Eytan

2. Know the secret Costco pricing codes.

Costco’s pricing codes indicate whether an item is specially priced, discounted or will not be restocked (R.I.P. Kirkland-brand garlic-infused olive oil). Here is a general breakdown of the codes, according to HubPages:

• Prices that end in $0.97 have been marked down from their original prices, which always end in $0.99.
• Other odd pricing, like $0.49, $0.79 or $0.89, indicates that Costco negotiated a special price with the manufacture.
• An asterisk (*) in the upper right corner of the pricing sign means the item won’t be reordered, so if it’s a favorite you should stock up.
• Prices ending in $0.88 or $0.00 can mean the store’s manager marked it down to move the product faster.

Photo: Marc Majcher

3. Look for Costco’s instant rebates.

You can find a number of items that offer instant rebates in Costco’s monthly coupon book as well as the Costco shopping app, but don’t worry about clipping coupons. The savings highlighted are instant rebates, and Costco cashiers keep copies of the coupons at their registers and will scan them for you when you purchase a qualifying item.

Photo: m01229

4. Shop summer closeouts before the season is over.

Costco does massive markdowns on large summer items like patio furniture and pool toys before the season is over because stores need to free up room for the next season’s merchandise. You can get great deals on merchandise like barbecues, beach chairs and camping equipment that can be used right away. End-of-seasons deals can also be found year-round, however, including following Christmas.

Photo: Faylyne

5. Non-members can access Costco discounts, too.

Those who aren’t Costco members can still buy alcohol (in certain states including California), use the pharmacy and immunization services, eat at the Costco food court, and access the store’s eye and hearing exams, reports Wisebread. You can also get around the membership requirement and shop the store as usual by paying with a Costco Cash Card, though you’ll have to enlist the help of a Costco member as these can only be purchased and reloaded by a member.

Read: Costco and Amex End Partnership, Citibank Steps In

Photo: Ernesto Andrade

6. Buy discounted gift cards, movie tickets and even toll passes.

Costco’s deals go way beyond bulk goods — members can get discounts on movie tickets, store or restaurant gift cards, and local attractions like theme parks. Some stores even sell discounted bridge toll passes for local freeways, according to PopSugar.

Photo: Jason Tester

7. Take your lunch break at the Costco food court.

Eating lunch on the go is a huge budget buster, so if you left your sack lunch at home head to a Costco food court. You can buy the signature $1.50 hot-dog-and-soda combo, a $10 whole pizza, or other reasonably-priced fare. Plus, buying and eating at the food court doesn’t require a Costco membership.

Photo: Portal Abras

8. Buy the Kirkland Signature brand.

Kirkland Signature is Costco’s in-house brand, but products offered by the brand are far from generic. Products carrying the Kirkland label tend to be high quality at a good value, and some even come straight out of the same factories where name-brand goods are made. Among the top-rated Kirkland products Consumer Reports lists bacon, car batteries and regular batteries, ice cream, toilet paper, organic foods, and dish and laundry detergent.

Photo: m01229

9. Make a list (and stick to it!).

This isn’t really top-secret information, but we know all-too-well how running into Costco for “just a few things” can devolve into multi-cart shopping overkill. Make a list to keep you under control and on track.

10. Fill up on free samples.

Don’t let anyone shame you out of eating your weight’s worth of Costco’s free samples. The company actually encourages distributors to give out as many free samples as people will eat.

Photo: Sarah Murray

11. Keep your Costco receipts.

Costco is famous for its incredible return policies, which include a 30-day price protection policy and 90-day return policy. Keep an eye out in the weeks after a Costco trip — if something you bought goes on sale you can claim a refund for the price difference. The store also has a very flexible and open-ended exchange policy. If an item you purchased breaks at any time, you can usually exchange the item for a brand new one or upgrade to a different version and just pay the difference.

Related: Costco and 11 Other Stores with the Best Return Policies

Photo: Lisa Brewster

12. Put on your blinders.

Every entrance to Costco is the same: A narrow path lined with shiny new things looking to find a forever home with you. Put your head down, stick to your list, and if you really just have to buy something at least make it a Tommy Bahama beach chair. Best impulse buy ever.

Photo: Adam Galloway

13. Book a vacation through Costco.

You might not know that you Costco membership gets you exclusive access to Costco Travel, a service that offers discounted vacation packages and planning. You can visit CostcoTravel.com to find deals on flight and hotel packages, cruises, and rental cars for destinations from Las Vegas to Hawaii and Europe.

14. Compare Costco’s per-unit prices against other stores.

Costco may be chock-full of discounted goods, but not everything there is a steal. For example, my Costco store’s tilapia is about three times the price of that at my local grocery store. Also, many grocery stores offer coupons and discounts on name-brand items that Costco sells in bulk but does not markdown.

Photo: Adam Galloway

15. Avoid “action alley.”

According to Lifehacker, the middle area of the store is named “Action Alley” because of the high traffic. Distributors sometimes pay to put their products there or hand out samples. The flashy signs and advertising can be deceptive: oftentimes this is where the highest-priced items and non-bargains at Costco live.

Photo: brewbooks

16. Start at the back of Costco.

The best bargains at Costco are typically at the back of the store or hidden at the end of aisles. Start your shopping trip from the back of the store to get your staples and deals, and then work your way up to the front where the cash registers are.

17. Buy meat in bulk and freeze.

One of the best deals at Costco is bulk meat because you can portion it out and freeze it for later use. Even the late, great Julia Childs was a fan of buying meat from Costco — she was especially fond of the hot dogs.

Photo: Jason Tester

18. Fill up at the Costco gas pumps.

Some Costco stores also have gas stations on their lots, which offer members competitive per-gallon prices. You can check off grocery shopping and filling up on gas at the same time.

Photo: Mike Mozart

19. Take advantage of the Costco Tire Center.

Sometimes Costco discounts name-brand tires by $70 to $80, which is enough savings to cover the cost of membership and then some. For customers who’ve purchased tires from Costco, the center also offers free tire balances and rotations. I’ve even had one Costco Tire Center worker patch a small hole in one of my tires for free.

Photo: David Goehring

20. Shop online and use Costco’s app.

Going to Costco doesn’t top everyone’s list of favorite things to do. Skip the crowds and avoid the hassle by shopping the Costco website or through the Costco mobile app — you can even find web-only deals that aren’t offered in the stores.

The Costco app is also a great resource that highlights current deals and offers, so checking it before heading to your Costco can help you pre-plan and have a smoother trip while still hitting the best deals. You can even use it to create your shopping list.

Photo: m01229

This article originally appeared on GOBankingRates.com: 20 Ways to Pay Less at Costco

This article by Morgan Quinn first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

52-Week Savings Challenge No. 52: Go On a Fiscal Fast

It’s finally week 52 of the 52-week savings challenge. Last week, GOBankingRates recommended you save $51 by becoming a mystery shopper.

The final installment of the 52-week saving challenge is here, and if you’ve made it this far, you’ve learned to scrimp, save, cut corners and go without — all as part of a year-long quest to boost your savings and reevaluate how you spend money.

But there is one more challenge you have to pass, and it’s the most extreme of all to date: the fiscal fast.

Invented by author, financial expert and “Ultimate Cheapskate” Jeff Yeager, the fiscal fast is exactly what the name implies — a period of self-deprivation of all things monetary. The challenge is to go a full week without spending any money at all — not a single penny. Don’t cheat by stocking up in advance on things you want, although you may stock up on things you need, like medicine, produce or formula for the baby.

During this period of want, you’ll redefine your relationship with your hard-earned money, you’ll discover how little it takes to get by really and you’ll be confronted with how much excess you’ve been squandering.

As a side bonus, you’ll rediscover how to entertain your family for free and you’ll use up all kinds of stuff around the house that’s been collecting dust — yes, even that fruitcake in the back of the pantry.

It won’t be easy and you’ll be certain to struggle, but when you start to waver or falter, take comfort in the fact that you are not alone. The GOBankingRate staff took the fiscal fast challenge a couple years back, and they came out the other end financially stronger and thriftier.

The fiscal fast is the perfect keystone to the 52-week savings challenge. You’ve already spent almost a whole year cutting back on spending, now cut it out altogether with this spending detox.

Week 51 << 52-Week Savings Challenge

This article originally appeared on GOBankingRates.com: 52-Week Savings Challenge No. 52: Go On a Fiscal Fast

This article by Andrew Lisa first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

How to Save for Retirement on a Single Income

Saving for retirement for you and your spouse is like climbing a hill in three ways:

1. You can’t achieve your goal without taking the first step.
2. It’s a gradual progress.
3. It’s easier with a contributing partner.

But when your partner can’t contribute, saving enough money for two people instead of just one on a single income is like climbing a mountain; it takes a lot of strategic planning and hard work. If you’re saving for retirement on just one income — either for yourself or also for your spouse — here are some steps you can take to lighten the load and help you build your savings faster:

1. Set a specific retirement savings goal.

Setting your goal to “save money” is noble, but not specific enough. The more details you apply to your goal, such as the amount of money you need and a time frame, the more you can plan for milestones and stay motivated. A better goal to set, for example, would be “save $4,800 a year.” You can break it down into monthly numbers (“save $400 a month”), making it clear and reachable.

You can determine if you’re saving enough money for retirement by using CNN Money’s calculator. Just enter your current age, your retirement age, the amount of money you have saved so far, your current income and your savings rate.

2. Cut back on certain expenditures before retirement.

Reducing superfluous spending is one of the biggest ways you can set more money aside for your retirement nest egg. Set a budget for yourself, and start practicing discipline. The sooner you can establish frugal habits, the faster you’ll be able to reach your retirement goals.

If you’re saving for two retirements, make sure your partner understands the budget goals and isn’t draining the single-income account. Here are some ways you can reduce your spending:

• Start carpooling to work or taking public transit.
• Get on a strict meal plan and grocery budget to avoid impulse shopping and wasted food.
• Learn new skills such as sewing and handiwork so you don’t have to spend money on new clothes or household repair services.
• Cut your cell phone bill in half (or more) by switching to a cheaper plan.
• Use Netflix or Hulu instead of expensive cable TV.
• Invite people over instead of going out for drinks or a movie.
• Bring your lunch to work instead of eating out every day.

3. Get rid of any existing debt.

By the time you’re ready to retire, maybe your student loans and mortgage will be paid off. But, maybe you’ll have to deal with other forms of debt, such as credit card and car loan debt.

The interest you accrue over time is money you’re giving up that could have gone into your retirement savings account. So, the faster you pay off your debt, the less money you’ll waste on interest. See if you can consolidate your credit card debt or refinance your car loan to reduce interest and help you get out of debt.

Related: 9 Ways to Deal With Debt in Retirement

4. Put your money in retirement accounts.

When it comes to investing for your retirement, you have options. Roth IRAs, traditional IRAs and 401(k)s, for example, can help you save up enough money for retirement.

As you start setting money aside for retirement, consider your needs and time frame. If you are saving for two people, you might want to go with whichever option will bring you the highest yield. If you’re limited on time, going with a short-term solution might be the best route to take.

5. Find side work to boost your income.

You might have a skill that you could turn into extra income. Freelancing, consulting, babysitting or doing odd jobs can bring in a few hundred dollars a month, which might contribute significantly to your retirement budget. If your spouse picks up some work as well, that could relieve some of the pressure that’s been placed on you to save for retirement.

6. Rethink your taxes.

If you are moving from two incomes to one, you might want to adjust your tax withholding on your W-4. The IRS website features a withholding calculator that can help you determine your federal income tax withholding. Also, try to meet with a tax professional and make sure you are deducting everything you can on your taxes.

As you work toward retirement for just yourself or for you and your spouse, remember that your retirement fund can go a long way. Simplifying your life, cutting back on spending and finding additional ways to earn money now are smart ways to save.

This article originally appeared on GOBankingRates.com: How to Save for Retirement on a Single Income

This article by Tess Frame first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

5 Times Cash Rewards Credit Cards Come in Handy

Life is one big unpredictable journey, and when the unexpected happens it often comes with surprise expenses. Utilizing a credit card with cash rewards during emergencies can help you get through tough times and buy you time to pay off costs you didn’t plan for, and even reap a cash back reward.

So the next time an emergency strikes, have no fear. Smart use of a credit card cash reward can ease you through the storm and help you avoid predatory payday loans that will only raise your costs. Here’s how to make the most of your cash back card when an emergency strikes.

Related: When to Use Your Emergency Savings Fund

5 Best Cash Back Credit Cards to Use for Emergencies

With a cash back card, you’ll get a percentage of the money you spend with that card back, typically paid to you by the credit card issuer as a credit to your account’s balance. Cash back rates are variable, but usually range from about 1 to 5 percent and with some cards you can even choose which purchase categories earn rewards. Many cards also come with a 0-percent introductory interest rate to start, which is even better if you end up charging emergencies to the card.

Be wary, though, of overspending. If your card is for emergencies only, make sure the situation at hand is a true emergency and that using your cash rewards card is your best or only option. Then budget and plan to pay off your balance as soon as possible after the emergency situation has passed to avoid paying more in interest charges, or they could quickly catch up to any cash rewards you received.

Everyone’s definition of an emergency is different, and it can be tricky to know if a situation truly warrants the use of an emergency credit card. Other times it’s clearer, like in these five situations outlined below. In these circumstances, a credit card with cash rewards can help save the day.

Read: 4 Ways Real People Used Their Emergency Fund

1. Medical crisis involving you, a family member or a pet

From a car crash to an unexpected appendectomy, your health status or that of loved ones can change at any moment. Or an animal friend might need a surgery or emergency procedure when cash is tight. Medical emergencies can be the most frightening and urgent scares in life, and can also carry some of the highest bills that could justify the use of a cash rewards card.

While rewards specific to medical expenses are rare, the BankAmericard Cash Rewards credit card offers 1 percent cash back on all purchases, anytime. If you happen to also use the card to shop at the grocery store, you can earn 2 percent in cash back, and for fuel purchases, earn 3 percent cash back (up to $1,500 total grocery and gas purchases per quarter). Enjoy no annual fee and an introductory rate of 0 percent APR for 12 months, then interest rates on this card range from 12.99% APR to 22.99% percent, depending on your personal credit score.

2. Urgent vehicle care and emergency repairs

When the transmission goes out and you still need to get around, you don’t have much time to debate the repair. You have work, school or other places to go now, so the repair costs you can’t pay for will probably need to be charged.

The U.S. Bank Cash+ Visa Signature Credit Card allows cardholders to earn up to 5 percent cash back on three categories of their choice (these can be reassigned each quarter), and 1 percent back on all other purchases. With the relevant categories selected you can earn 2 percent cash back on gas and 5 percent cash back on car rentals while your car is in the shop. The rate is 12.99% APR to 23.99% APR depending on your credit score, and there is no annual fee.

Related: When to Stop Pouring Money into Repairing Your Car

3. Homeowner nightmares that have to be fixed pronto

The hot water tank dies after 20 years, a pipe bursts, or the dishwasher takes a nosedive: as a homeowner, you can find yourself suddenly facing an expensive repair or appliance replacement, and a cash rewards card can help you get some of those costs back.

The Chase Freedom credit card offers 5 percent cash back on up to $1,500 in purchases made each quarter in certain categories or at certain stores. Now through June, cardholders get 5 percent back at Bed, Bath & Beyond and Overstock.com, which both offer a variety of home goods and appliances. On all other purchases, users earn 1 percent cash back, plus there’s a  $100 bonus when you spend $500 in the first three months. There is no annual fee and an introductory 0% APR for the first 15 billing cycles, which then will revert to the standard rate range of 13.99% APR to 22.99% APR.

4. Emergencies requiring immediate travel

Family emergencies happen and you might not always live around the corner. Maybe there’s been a medical emergency and your sister needs someone to watch her kids, starting tonight, or you have to attend a funeral. Last-minute travel by plane, rental car or cross-country train is never cheap, but the Capital One Quicksilver Rewards credit card can help curb a bit of the costs. This cash rewards card provides unlimited 1.5 percent cash back on every purchase you make. It has no annual fee and a 0% APR until January 2016, when a rate between 12.90% APR and 22.90% APR will be assessed and applied based on the cardholders’ creditworthiness. Or you can try a travel rewards card to earn miles to cover flight costs or rack up points to cover travel costs.

5. An unexpected loss or theft

You didn’t think it will happen to you until it does: Someone broke into your vehicle after work and stole your laptop, or you left you smartphone on top of your car and it flew off somewhere along the freeway. Now you’re in a pinch and need a new device immediately. Consider the Citi Double^® Cash Card. Cardholders earn cash back twice on every purchase they make. This means 1 percent cash back when a purchase is made. Then another 1 percent cash back is earned once the purchase is paid for. Intro rates start at 0 percent APR and vary depending on your credit rating.

This article originally appeared on GOBankingRates.com: 5 Times Cash Rewards Credit Cards Come in Handy

This article by Holly Hammersmith first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

NC Senator Michael Lee of Wilmington Might Be a Debt Collection Idiot

North Carolina is trying to pass legislation which will roll back protections for consumers who have bad debt purchased by debt buyers.

Senator Michael Lee from Wilmington, North Carolina is the sponsor of S.B. 511, titled Proof Required for Debt/Fees, which efforts to rollback the requirement the bad debt buyer must have detailed information about where and when the debt originated and details on how the fees were calculated, before suing the consumer.

I can only assume Senator Lee is just an ill informed legislator. Because either he doesn’t care about to baseless claims his constituents face from bad debt buyers or he is becoming a cheerleader for debt collectors.

The News & Observer says Lee believes rolling back the 2009 consumer protections, which “passed by a unanimous vote in the Senate because, on a bipartisan basis, people were troubled on behalf of taxpayers about what was happening in the courts,” is a smart thing to do.

Lee’s argument about making it easier for collectors to sue is that consumers can challenge the suit in court and demand proof. But we already know people are afraid and don’t challenge these suits so Lee’s position is effectively to retard common sense protections already in place for consumers.

In my opinion, this legislation is ill-advised, ill-conceived, and unwarranted. Besides, what we are really talking about here is just making sure the bad debt buyer has the information on hand to prove this is a valid debt. The only logical reason to remove this requirement would be so the bad debt buyer is not required to have this information on hand.

And to make this situation even more ridiculous, Lee is listed as an attorney on his North Carolina General Assembly page.

But maybe here is another clue what might be driving this slap in the face of North Carolina citizens. The website for Michael Lee, the attorney, says “The firm focuses on…debt acquisition.”

Lee’s idiotic sponsored bill wants to make a charge-off statement proof a debt is owed. Stricken as proof required by Lee’s bill is the contract which must contain the signature of the defendant and copies of documents generated when the credit card was actually used. Left in the bill is just a requirement that to prove the debt the debt collector needs “A copy of the contract, charge‑off statement, or other writing evidencing the original debt.” Will a Post-It note be sufficient now?

And in order to get a summary judgment against consumers who already don’t know how to defend themselves, all that will be required will be:

“The only evidence sufficient to establish the amount and nature of the debt shall be at least all of the following items:
(1) The original account number.
(2) The original creditor.
(3) The total amount claimed to be owed.
(4) An itemization of post charge‑off payments or credits, where applicable.
(5) The charge‑off balance, or, if the balance has not been charged off, an explanation of how the balance was calculated.
(6) An itemization of post charge‑off fees, where applicable.
(7) The date of last payment, where applicable.
(8) The amount of post charge‑off interest claimed, and the basis for the interest charged.”

All of that appears to be easy to just pull from the air and write on that Post-It note rather than say, actually have proof and evidence to support the claim.

Senator Harry Brown from North Carolina is quoted as saying, “I think the intent of this bill is to find a balance between where we are today and maybe where we were before ‘09 … I think the key point of this is, this is debt that someone has gone out and decided not to pay.”

But even Brown is as clueless as Lee. This is not an issue about not paying a valid debt. It is an issue that the debt that is being collected or sued over is in fact a valid debt.

But Lee appears to be sticking to his illusions this bill won’t screw consumers, “The burden of proof is not shifted in this matter,” Lee countered. “I’m getting a little frustrated there are so many misstatements coming out.” – Source

Surely, simply asking that the bad debt buyer have the proof the debt is really owed with commons ense documentation like statements and contracts is not a requirement that North Carolina lawmakers should try to dilute. What do you think?

This article by Steve Rhode first appeared on Get Out of Debt and was distributed by the Personal Finance Syndication Network.

What the World’s Sexiest Woman Michelle Keegan Is Worth

Michelle Keegan is the world’s sexiest woman, at least according to British men’s publication FHM. Along with Keegan, FHM also named 99 other women on its list of the 100 Sexiest Women in the World 2015.

Being named one of the world’s sexiest women has to have its perks, but is a well-filled bank account one of them? Here’s a look at the net worths of Michelle Keegan and other top women on FHM’s list of the World’s Sexiest Women. Net worth information comes from CelebrityNetWorth.

Read: What Sandra Bullock, People Magazine’s Most Beautiful Woman, Is Worth

The Net Worths of the 3 Sexiest Women in the World

Jennifer Lawrence Net Worth: $40 Million

FHM listed Jennifer Lawrence as No. 3 on its list of the Sexiest Women, and it’s no surprise: the young star has been a hot name since she scored a breakout lead role in hit franchise “The Hunger Games.”

Lawrence’s appeal is also due, in large part, to her famously laid-back attitude, lively sense of humor and no shortage of talent — a perfect example of this charming combination is when she tripped walking up the steps to accept her best actress Academy Award for “Silver Linings Playbook.” Her success has also come with huge earnings, with Jennifer Lawrence’s net worth estimated at $40 million.

Kendall Jenner Net Worth: $6 Million

Kendall Jenner was listed as the second-sexiest woman in the world by FHM (and the “sexiest woman in America”). As a reality star and member of the Kardashian clan, Jenner has been in the spotlight throughout her adolescence and in recent years was able to segue her high profile, beauty and talent into a very successful modeling career. Now one of the hottest and most in-demand models, at just 19 years old, Kendall Jenner’s net worth is an impressive $6 million.

Michelle Keegan Net Worth: $4 Million

An English actress and model, Michelle Keegan is best known for his roles on British television series “Ordinary Lies” and soap opera “Coronation Street.” Before her big break, however, Keegan made money the way many young people do, working in retail and at an airport according to HollywoodLife. But with her success she quickly became a multi-millionaire, with her net worth estimated at $4 million.

Photo credit: Featureflash

This article originally appeared on GOBankingRates.com: What the World’s Sexiest Woman Michelle Keegan Is Worth

This article by Elyssa Kirkham first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.

Could Social Media Be Causing You to Overspend?

Social media has exploded. It is a multi-million dollar industry with ordinary people becoming overnight sensations and companies cashing in on people’s apparently insatiable need to constantly be connected. It is a vital connection to loved ones serving overseas and to keep in touch with family and friends.

The many different platforms have enhanced our lives by making us feel connected and that our opinion matters. Yet what if all this sharing has a dark side? Could social media be causing you to overspend?

Overspending is a big problem in many households. With skyrocketing prices at the store and gas going steadily up and more people getting behind on their credit card and loan payments, sticking to a budget has become an almost impossible task. There never seems to be enough money left at the end of themonth, and it seems a paycheck just disappears.

If you want to rein in your spending, first you have to determine where the money is going. Once all the necessities are paid like mortgage, rent, bills and food, do you spend too much on trying to keep up with the Jones’?

How to Tell if Social Media Is Causing You to Overspend

Here are some questions to determine if your overspending is caused by social media.

1. Do you constantly check to see what your friends bought?
2. Are you spending more time than usual on social media?
3. Do you feel anxious, jealous or dissatisfied with life after checking social media?

It used to be just your neighbors and co-workers you tried to keep up with or outdo. Now it’s everyone in your circles, posting about their latest luxury cruise "just because" or posting beautiful pictures of their latest $100,000 kitchen remodel on Pinterest. It might not even be people you "know," just people you envy online.

This might not even be a conscious choice; you might be overspending just to keep up appearances. You might splurge on a $2,000 sofa because you saw one online, even though it’s way out of your budget. You think it is okay because of the special financing, but you can quickly get in trouble if you miss even one payment, because the interest instantly gets added on from the day of purchase. Suddenly that $2,000 sofa balloons into $3,000, and you are still paying on it for months or years after you bought it.

Resentment could be another byproduct of social media. You see all the seemingly perfect people online and you wonder why your life isn’t like that. You feel like it’s not fair, so you spend the $600 you managed to save for the emergency fund on one wild shopping spree. Then when a true emergency occurs, you have nothing left besides a few cool posts on Facebook and some new clothes or furnishings.

The truth is that you don’t know everything behind the photos and posts. The couple with the gorgeous beach house, two perfect kids, and adorable puppy? Their finances could be in worse shape than yours or theycould be having health problems. You only get to see the surface or mask that they choose to post. Basing your own desires on what you perceive is like falling for the Wizard of Oz’s tricks.

How to Stay Connected and Still Avoid Overspending

How do you turn it around? First, decide what your goals are. What do you want your life to look like? Do you want to be debt-free? Do you want your house to look like a spread in House Beautiful? Do you want a brand-new car or flashy clothes? Once you pinpoint your priorities, you can concentrate on mini-goals to reach them.

Take control of your spending by keeping track of every penny. For every purchase, ask yourself four questions:

1. Is this something I really need?
2. Do I already have something I can use?
3. Can I find it cheaper somewhere else?
4. How will this enhance my life or goal?

After a while, the questions will become automatic and you will find yourself letting go of the constant need to spend, and instead become more content with what you have.

Unplug for a while, at least until you get on track with your spending. There are so many ways to connect that it can become addicting. Like any addiction, sometimes going cold-turkey will break the spell it holds over you. Just try it for a week and see how you feel. Better yet, see how your finances are doing.

Social media isn’t going away. It has become a part of our lives, for better or worse. How you choose to engage could be the difference between failing finances and a healthy budget. Once you master your overspending, social media can be fun again!

Shaunna Privratsky is a regular contributor to TheDollarStretcher.com. Visit today for 8 ways to beat retail therapy and how to recognize the emotions behind buying stuff.

This article by Shaunna Privratsky first appeared on The Dollar Stretcher and was distributed by the Personal Finance Syndication Network.

What Does A “Charge-Off” Notation Mean On My Credit Report?

Q. What does a “charge-off” notation mean on my credit report?

A. A common theme in my credit card debt relief law practice is to know what you owe and have a plan to pay off your credit card debt. The best way to get a true picture of your debts is to run your credit reports from the three major credit bureaus, Equifax, Transunion and Experian. I recommend getting all three reports from annualcreditreport.com. This site will provide all three reports for free and you can save them to your computer for future reference. It is important to get all three of your credit reports since your creditors might not report to all three bureaus. If you have debts you have not paid for quite some time, you may see a notation that your account has been charged off. So what does that mean?

A charge-off is the declaration by a creditor that an amount of debt is unlikely to be collected. This occurs when a consumer becomes severely delinquent on a debt. Traditionally, creditors will make this declaration at the point of six months without payment. But this does NOT mean that you don’t have to repay the debt. Your creditor considering the debt “uncollectable” is just a term that has no bearing on your duty to pay back your debt. Your creditor is still legally entitled to collect on this debt. At this point, your creditor can continue collection efforts or send your debt out to a collection agency or sell your debt to a third-party.

If you are receiving mail from entities you have never heard of, chances are your debts are with a collection agency or debt buyer. Some common names you might see are Portfolio Recovery Associates, Midland Credit Management, Cavalry Portfolio Services, Encore Capital Group, Absolute Resolution Corporation, NCO Financial Systems, and Enterprise Recovery. It is important that you have these creditors verify that you actually owe a debt to them before sending any payments to them. As long as you can verify that this is the proper person to make payments, it is crucial that you realize that you might have options for repayment.

A few options to consider are repayment of the full balance over an extended term, bankruptcy, or a debt settlement. Going back to my original theme, have a plan. If you are facing debts that are charged off, you face the potential of getting sued due over your non-payment. Before it gets to this point, you need to develop your individual plan to see what works best for you. There is no “one-size-fits-all” solution when looking at your debt relief options.

This article by Daniel Gamez first appeared on Gamez Law Firm and was distributed by the Personal Finance Syndication Network.

A Guide to Getting a Mortgage After You’ve Had a Loan Modification

If you had a mortgage just a few years ago, fell on hard economic times or were offered a mortgage loan modification by your loan servicer and you’re looking to apply for a new mortgage loan, you’ll need to meet certain credit requirements to get a green light on a new loan. Here’s what you need to know.

What Is a Loan Modification?

A loan modification, also known as a restructured mortgage, is a loan in which the original terms of the agreement have changed, resulting in the restructuring of the debt.

The most common forms of loan modifications had to do with rate and payment restructuring when borrowers were unable to refinance. Another common strategy for mortgage companies was to offer principal curtailment (reduce the amount owed) rather than forgive debt. The difference was repositioned as a lien on the home in the form of a silent second mortgage (a mortgage not disclosed to the original lender), which did not come into play until the home was refinanced or sold.

It is important to note here that a loan modification is different from a mortgage refinance. A loan restructuring changes the terms of the original mortgage, whereas a refinance pays off the original mortgage loan in exchange for another. Most homeowners these days are not seeking a loan modification, and most banks are not promoting them, as the economy has shifted tremendously from just a few years ago.

The Lowdown

If a modified mortgage is in your past and you’re looking to take out a new mortgage, then these rules apply:

• To be eligible, you have to have made at least 24 mortgage payments since the restructuring was completed. It is this black-and-white. Even if there was a second mortgage in place that was restructured, this same waiting time applies — whether the mortgage is on a primary home, a secondary home or an investment property.
• If you are purchasing or refinancing another property independent of the property that has a restructured loan, a one-year waiting time applies.

If your previous loan modification contained a forbearance, a period during which you did not make a mortgage payment and the additional interest was tacked onto the principal balance of the mortgage at the time the restructuring was completed or if there was a principal balance forgiveness, it’s going to be up to the individual mortgage company to approve. Generally, mortgage loan companies frown on this, even if you have met the 24-month — or 12-month requirement — depending on your individual circumstances.

Planning Ahead: Refinance or Modification?

If your mortgage loan servicer offers you a lower monthly mortgage payment, make sure it is a bona fide refinance offer, rather than a potential loan modification. If you are unsure as to whether or not the offer you’re receiving is a loan modification or refinance, be smart, get it in writing.

The best outcome to maintain your credit standing is refinancing rather than restructuring. If refinancing is not an option, perhaps due to home equity for example or a heavy debt load, and loan modifying is an option with your current loan servicer, know that you’re going to be limited on your future mortgage options for up to two years.

Additionally, lenders are required to report modified/restructured mortgages on the tri-merge credit report mortgage banks use to make credit decisions. This financial services credit report is how banks find derogatory credit events. Even if you didn’t have any missed mortgage payments, a restructured mortgage can still be a red flag to potential mortgage lenders.

If you had a home loan modification in the past few years and you want to buy a new home, it’s a good idea to check your credit reports and credit scores to see how it may have affected your credit, and to see if there are any errors or problems you need to resolve before you apply. You can get your free credit reports from AnnualCreditReports.com and you can get your credit scores for free from several sources, including Credit.com.

Related Articles

• Why You Should Check Your Credit Before Buying a Home
• How to Refinance Your Home Loan With Bad Credit
• How to Get a Loan Fully Approved

This article originally appeared on Credit.com.

This article by Scott Sheldon was distributed by the Personal Finance Syndication Network.