October 2008 Archives

Staci

Send a comment to Staci

Last week I was talking with a friend of mine who is still paying off his student loans from graduate school. Like he does with his car loan and his mortgage, he pays more than the minimum amount. The extra money goes toward the principal (the balance owed on the loan), which means he pays the loan off faster and with less interest . If this is something you can afford, I highly recommend it, especially since student loans don't have a prepayment penalty .

However, my friend's student loan servicer was recently purchased by another company, and now he's dealing with a different billing system.

Before, he used a loan coupon book  and mailed in his more-than-the-minimum payment every month. When he called the new company to ask about payment options, the representative looked at his account and said, "You're paid ahead through April, so you don't have to make any payments until then."

Then he asked for a bill, and the representative explained that he wouldn't be receiving one until his next payment was due — in April.

To be fair, I suppose most student loan companies aren't used to their customers inquiring about paying more and paying in advance!

What I recommended to my friend is that he set up a recurring automatic payment for his student loan through his checking account.

When he balked, I told him to think of automatic payments as an "electronic coupon book."  That way, he won't have to rely on receiving a bill — he can just take matters into his own hands. Plus, he'll be saving paper and stamps!

What works best for you to stay ahead — or at least on top of — your student loan payments?

Barbara

One of the first things I bought as a college freshman was a USD hoodie from the campus bookstore . And I pretty much lived in it for the following four years. OK, not completely true, but be sure that T-shirts, sweatshirts, and jeans were staples in my collegiate wardrobe .

I allocated very little of my budget during college to clothing. When I did get new clothes, it was for a specific event, and, generally, my mother let me use one of her store credit cards to purchase the clothes. Thanks, Mom!

However, some would argue it's important to dress well on campus. Here are two reasons I've heard before:

1. Dressing well increases your focus and can help your grades. I knew someone in college who would literally get ready to study. That means nice clothes, fixed hair, and done makeup. She said it helped her prepare better for tests. By dressing up she felt more attentive and focused — kind of like she was wearing a school uniform.

2. A neat appearance  can help your rapport with professors and boost your ability to network. Come graduation time you'll need those professors to offer recommendations. And while for some your dress during class may not matter, to others it may be skew their opinion of you. You never know who you're going to meet on campus. Potential employers and connections could be lurking.

I'm not necessarily convinced on the first point. I think it depends on the student. After all, I pulled good grades in my sweats. However, I'm definitely down with the second point.

What do you think? Is your appearance on campus a big deal or are you fine in the stereotypical university sweatshirt? And if you are staying fashionable on campus, how do you budget for clothes?

Caroline

Identity theft can happen to anyone. And at college, you're particularly vulnerable . You lock your apartment and your car, right? Your identity is much more valuable, so guard it just as carefully as you do your other possessions.

Here are some tips to keep your identity safe:

• Check your snail mail . Don't ignore your mailbox, even if you don't expect any mail. You may be receiving credit card offers or other mail that could be swiped by an identity thief. Check your mail every day.

• Watch your personal possessions. Studying in the library and need a break? Don't leave your backpack, laptop  and other personal items unattended.

• Keep a skinny wallet. If you lose your wallet, you'll need to cancel any credit cards immediately, so the fewer you carry, the better. And don't keep your Social Security card in your wallet at all. Make a photocopy of the cards in your wallet, and stash the copies in a safe — you'll be able to cancel them in a flash if need be.

• Shred, shred, shred. Don't just toss junk mail and other paperwork with personal information on it. Identity thieves are notorious for raiding garbage cans. Invest in a paper shredder and use it liberally.

• Check your bank and credit card statements closely. Whether you rely on hard copy or online statements, check them regularly for suspicious activity.

• Get a copy of your credit report  annually, for free. Again, you want to check for any suspicious activity, such as name or address changes, or accounts you don't recognize.

These are just a few ideas. Got any other tips or personal experiences to share?

Karen

Mid-summer, as I was blissfully reading email, I received three order confirmations from iTunes  thanking me for my gift card order.

"Wait!" I thought to myself, "I haven't placed any iTunes orders!" I tried to stay calm, but there was that little voice in my head saying, "Someone stole your credit card!"

I learned that it's hard to dial a customer service number when your hands are trembling, but I managed to do it. The nicest Wells Fargo customer service person answered the phone and walked me through all the pending transactions on my account, and at least five of them were purchases I had not made.

The representative noticed I was starting to get nervous again and assured me that I had nothing to worry about. After all, I have the WellsProtect® program built into my Wells Fargo credit card. This free program comes with all Wells Fargo credit cards and automatically protects the cardholder from liability for fraud and theft when reported promptly.

The representative closed my account and explained that a new account number would be set up for me. All I had to do was sign an affidavit  of forgery, which was mailed to me a few days later, and return it to have the charges that were not mine removed.

Everything that the Wells Fargo representative explained to me was exactly how it went. I received a new card in the mail. A few days later, I received the affidavit and returned it to Wells Fargo, and then my fraudulent charges were removed from my account.

I wonder what happened to the charges, or if the culprit was ever caught?

Now I'm a little bit more cautious about shopping online with my card, but knowing that the WellsProtect® program is always going to be there for me, I'm not going to let that stop me!

Staci

Last week, we commemorated Get Smart About Credit Day. This week, we're calling attention to a related event: National Protect Your Identity Week .

Spearheaded by the National Foundation for Credit Counseling, this initiative is designed to bring identity theft awareness and prevention programs to consumers in communities across the country.

Has your identity ever been stolen — even just a small piece of it? Mine has, and it was a maddening experience. A credit card that I hadn't used in a long time started accruing random charges for teenage clothing in New York and sports equipment in Texas. I didn't know that the charges were happening until I received a bill for thousands of dollars.

It took a lot of convincing before the credit card company (not Wells Fargo) would believe that the charges weren't mine, and frankly, their representatives weren't very helpful or empathetic. Countless phone calls, notarized fraud affidavits, and a freeze on my credit report later, I resolved the situation in a matter of months — fortunately with no damage to my credit rating.

Others haven't been as lucky. In fact, one of my high school girlfriends had her name, birth date, and Social Security number stolen by a former coworker. My friend used the experience to start her own nonprofit organization, the Identity Theft Action Council of Nebraska . Now she educates others about the crime of identity theft, helps victims put their lives back together, and shapes federal and state legislation. She's amazing!

Later in the week, Karen will tell her own personal story of fraudulent credit card usage, and Caroline will share some tips for identity theft prevention. Stay tuned.

Dinna

Did you know that October 16 is Get Smart About Credit Day? 

We've talked about it here on the blog before, but just as a refresher, it's an event sponsored by the American Bankers Association to help bankers teach students about using credit responsibly.

Wells Fargo is participating for the third year in a row, and I've been fortunate enough to be part of the working team. With the rising concern about the economy and increasing credit card debt, it has never been more important to help educate new users of credit cards and other credit products about their wise use.

Our team has planned all sorts of valuable credit-education events: in-store seminars, presentations at schools and college campuses, and even some workplace sessions. And we especially want to encourage productive conversations about credit-card readiness between parents and teens. Wells Fargo bankers have lots of great resources at the ready — all you have to do is ask!

In the meantime, if you want to check how credit smart you are, take this knowledge quiz. Or if you have credit questions, ask them here!

Barbara

This morning, as I was cuddled up and hitting snooze, hoping that time would go just a bit slower, my sister came into my room with an unexpected wake-up call: "There's water in the basement."

After a night of rain, my first thought was a failing sump pump. But as I walked into the basement lake, I had flashbacks. This was exactly what happened nearly one year ago.

I decided to use the same plumber I did last year. They said they'd be here in a couple hours. So I started working a bit, trying not to think about the greasiness of my unshowered hair.

Then the plumber called. "Because we're switching credit card service providers we can only accept checks or cash right now," they informed me.

Oh, did that throw a kink in my plans.

Lately, I've been so focused on paying down some of my debt that I've neglected my emergency fund and have chosen to rely on credit if something comes up. Cash or check for this large repair sum wasn't going to work with my current balance/budget.

A few calls to different plumbers for time and price quotes later, I kept thinking how nice it would be to have a plumber who really knew the situation from last year. If only I had enough cash to get the same guy and stick to my budget.

Faced with a bit of a quandary, I did something of which I'm not proud. I called Mom. Yes, folks, with one call to Mom and Dad bank my problems were solved. She agreed to throw some extra cash into my checking account on her way to work.

However, by the time Mom called as she neared the bank, the guilt had gotten to me, and I had already scheduled with another plumber who offered the same service for a comparable price that could be charged to a credit card. Plus, they offer a two-year service guarantee. Can't beat that.

While waking up to a backed-up sewer wasn't a great thing, it was a good thing to get me thinking about my finances. Deep thought session re: emergency savings vs. debt reduction  needed.

Have you had any similar incidents that triggered a financial wake-up call?

Barbara

Are you a coupon clipper? Generally, I'm not a huge coupon clipper. The savings are nice, but rarely do I find coupons for the items I buy regularly. So inevitably, I'd actually be spending more on items I didn't really need. This is one of the big tips for clipping coupons  — don't buy something just because you have a coupon, make sure you'll use it.

However, I might find myself using more coupons over the next year. I purchased a coupon book for the Sioux Falls  area — the Big Soo Coupon Book. I love this idea. This book is full of coupons from local merchants with savings ranging from dollars to hundreds of dollars.

This Sunday, the youth group at my church was selling the books as a fundraiser for $35 a pop. For each book sold, they got $10 — almost 30% of the cost. Good for them and good for me. Plus, I'll make that money back in savings.

A lot of the merchants are places I patronize anyway. So now when Staci and I head to the pizza place for their lunch buffet, I can use a buy one get one free coupon (provided Staci is willing to be the "buy one"). Or the next time I fill up with gas I'll clean my dirty car with a free car wash coupon.

Even though the coupons were something I had to purchase, I'm still really excited about the savings to come!

Is there something similar in the city where you live?And if you have coupon clipping advice, please share the savings tips!

Staci

It's October, my all-time favorite month! Golden leaves are falling, the air is crisp, and Halloween candy lines the shelves of every big-box store. Usually I'm breaking out the sweaters and baking up a storm, giddy with all autumn has to offer.

This year, though, the autumn mood feels far more somber. With the $700 billion Wall Street bailout plan  on everyone's minds, a lot of scary words have been thrown around:

Crippling financial crisis.
Unemployment.
Recession.
Depression.

So instead of enjoying the fall season, I'm watching my retirement account plummet and stressing about soon having to make two mortgage payments. That's right — two. Earlier in the year, I took a leap of faith and built a new home. Since then, the economy hasn't exactly cooperated. My current home hasn't sold yet, and my new home is scheduled to be finished in just a few short weeks. I'm not regretting the decision to build, but as I watch my assets fall and my debt rise, I am pretty worried about my finances.

If you're in college, the idea of retirement savings and two mortgages probably feels very far away, but I'll bet you have financial concerns of your own. Feel like telling us what they are?