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Take Action if You are a Victim

1. Call your local police department — Financial fraud is a crime.

2. Contact the fraud units of all three credit bureaus. Ask them to “flag” your account, which tells creditors that you are a victim of identity fraud. Also, add a victim’s statement to each of your credit bureau reports that asks creditors to contact you in person to verify all applications made in your name. Call the fraud units of the credit bureaus at:

AnnualCreditReport.com	1-877-322-8228	or	annualcreditreport.com
Equifax	1-800-685-1111	or	equifax.com
Experian	1-800-311-4769	or	experian.com
TransUnion	1-800-916-8800	or	transunion.com

2. Keep an eye on your accounts throughout the year by reading your monthly/periodic statements thoroughly. Check that all of the activity in your accounts was initiated by you.
3. Tear up or shred pre-approved credit offers, receipts and other personal information that link your name to account numbers.Don’t leave your ATM or credit card receipt in public trash cans. Crooks have gone through trash to get account numbers and information to get credit in your name.
4. Know your billing cycles, and take action if you think mail is missing. Follow up with creditors if bills or new cards do not arrive on time. An identity thief may have filed a change of address request in your name with the creditor or the Post Office.
5. When you pay bills, don’t put them in your mailbox with the red flag up. That’s a flashing neon light telling crooks to grab your information. Use a locked mailbox or the Post Office.
6. Protect your account information. Don’t write your personal identification number (PIN) on your ATM or debit card. Don’t write your social security number or credit card account number on a check. Cover your hand when you are entering your PIN number at an ATM.
7. Don’t carry your Social Security card, passport or birth certificate unless you need it that day. Take all but one or two credit cards out of your wallet, and keep a list at home of your account information and customer service telephone numbers. That way, if your wallet is lost or stolen, you’ll only have to notify a few of your creditors and the information will be handy.
8. Never provide personal or credit card information over the phone, unless you initiated the call. Crooks are known to call with news that you’ve won a prize and all they need is your credit card number for verification. Don’t fall for it. Remember the old saying, “if it sounds too good to be true, it probably is.”

Budgeting for Your Future

A budget is an organized list of your sources of income and the money you spend on essentials like housing and food, fun things like dinner and a movie, and what you need to save for the future. Just as using a map to make sure you reach your destination, budgeting is a tool that helps you realize your financial goals. It can help you navigate those moments when you experience financial difficulties. You can take charge of your finances by setting financial goals, planning a budget, and sticking to it.

Establish Good Saving Habits

• Pay yourself first. If you wait to see what’s left over, you are less likely to save. Determine in advance how much money to deposit into a savings account each month. If you receive a raise, increase the amount of money deposited into your savings account.
• Take advantage of bank technology. Consider automatic payroll deductions or automatic transfer from checking to savings. Arrange to have a specific amount transferred to your savings account every pay period.

What to Do If You Need Help

Getting in over your head is stressful. If you run into financial trouble, the first step is to address it immediately. Ignoring the problem will only make the situation worse. Getting organized and creating a budget is an excellent start. However, if a more immediate solution is called for you should:

• Contact the creditors whom you are having difficulty paying. Creditors are often the best source of short-term help and can help you avoid blemishes on your credit report.
• Pay cash.
• Set a monthly limit on charging, and keep a written record so you do not exceed that amount.
• Consider a lower interest debt-consolidation loan. If you qualify, combining your credit card debts into a single, lower-interest secured loan can make paying your debt down easier and free up money for living expenses. However, be careful. Consolidating your debt is only beneficial if the resulting loan terms are favorable and if you stop using additional credit.
• Contact a local certified credit counseling service if you continue to experience difficulties. The staff at Consumer Credit Counseling Service (800-388-2227), for example, can help you prioritize your needs, sort through your debts, and establish a more affordable payment plan with your creditors.
• Avoid scammers who promise to “fix” your credit. Getting back on your feet takes time. There is no “quick fix” and no one — payday lenders or loan sharks — can make your debts simply disappear.
• Know your rights as a debtor. Bill collectors must follow certain rules, which are enforced by the Federal Trade Commission (FTC). Read about these rules on the FTC’s Web site.
• Do not take bankruptcy lightly.Filing for bankruptcy has long-term consequences that you should carefully consider before proceeding. Bankruptcy is not a quick or casual solution for anyone.

A Few Things You Should Know About Credit

Borrow only what you need and what you can afford to repay.
Before you consider what kind of credit to use, you should determine whether you should use credit at all. Ask about the annual percentage rate (APR) of interest charged, if the interest rate is variable, and what fees are charged, if any.

Installment Loans and Lines of Credit

Credit Dos and Don’ts

Credit is a convenient financial tool. If you use credit, it is critical to understand how it works and know the reality and responsibility of repaying your debt.

Teens notice each time you pull out the plastic — but do they understand how it works? Probably not. You might be using a debit or credit card — very different ways to pay for things, but to kids, they look the same. Any time you make a purchase, regardless of whether you use cash, credit or debit, there’s an opportunity to teach kids about savings, budgeting and credit.

There are many events in children’s lives when good money management skills can be fostered. By constant repetition, these skills will develop into life-long habits. Consider a few opportunities to reinforce messages:

• Piggy Banks — The First Lesson in Saving

  The arrival of a child’s first piggy bank teaches at an early age that pennies, dimes, and nickels can add up to dollars pretty quickly.

• Weekly Allowance — Spend Some & Save Some

In many families money is a taboo topic. But you can help your children and grandchildren learn financial lessons that will last a lifetime by looking for teachable moments in your daily life that naturally bring up the topic of money. Here are some examples of teachable moments to help you get started:

When depositing your paycheck, talk to your kids about:

• Budgeting some of your paycheck to pay for things like rent, food and clothing.
• Saving a portion of your paycheck to build a nest egg for future expenses like college tuition and retirement.