The Federal Trade Commission received more than a million consumer complaints last year, and identity theft topped the list for the 11^th year in a row.¹ The FTC reported more than 250,000 complaints about identity theft in 2010, representing 19% of the total complaints received.

Identity theft scams are becoming more prevalent online. About 45% of consumers reporting fraud said the transaction was initiated by email and 11% claimed it was through a website.²

Here are four tips to help you protect against identity theft:

Check your accounts regularly. Kiplinger’s suggests spending a few minutes online every day looking at your bank and credit card accounts.⁴ Make sure you can recognize every transaction. By making this a habit, you can detect suspicious activity before it’s too late.

Watch your phone! If your phone gets lost or is stolen, someone could have access to more than just your email. According to AdaptiveMobile, security attacks on smart phones were at an all-time high in 2010.³ Keeping your phone locked is a start, but it won’t prevent tech-savvy thieves from breaking in. Make sure you log out of any bank apps or sites where your financial information is stored as soon as you’re finished. Many smart phones also offer remote wipe-out services that will automatically erase any information on your phone if you claim it as lost or stolen.

Don’t be fooled by an email. Many scams start with an email. You’re probably aware of scams that claim to award money or transfer wealth from a foreign country, but identity thieves are getting smarter. It’s becoming more and more common to get an email from a legitimate company asking you to log in to their website. Clicking the link takes you to a malicious copycat site that can steal your login credentials. If you ever doubt an email, call the company or open a new browser and go directly to the website.⁵

Be smart on social networks. Be careful about what you post on social networking websites because this is one of the main sources of information for many identity thieves. If your name, phone number, address and date of birth can all be found on Facebook, you’re giving identity thieves a head start! Check your privacy settings on any website to ensure your personal information isn’t open to the public.

If you’re looking for more protection, ask your Primerica representative how the identity theft coverage included with Primerica Debtwatchers™ can help you safeguard your credit. See https://my.primerica.com for additional Important Disclosures.

1. Money.CNN.com, viewed December 7, 2011
2. Money.CNN.com, viewed December 7, 2011
3. Kiplinger.com, viewed December 8, 2011
4. Money.CNN.com, viewed December 7, 2011
5. Finance.yahoo.com, viewed December 7, 2011

Times are tough, but you don’t have to let your debt mark you forever. If you’re among the 79% of undergrads who have credit cards, you’re part of a group carrying record-high credit balances. The average balance grew to $3,173 and 21% have balances of between $3,000 to $7,000. And this isn’t even including the more than $25,000 amassed in student debt!¹ Is this really the way you pictured starting your life?

Proud and in Debt
According to researchers at Ohio State University, young adults feel empowered by their credit card and education debts. Seriously?! You feel empowered? “The more credit card and college loan debt 18- to 27-year-olds had, the more they felt like they were in control of their lives. Ironically, this is the generation that is expected to deal with an increasingly growing 14 trillion dollar national debt.”²

Don’t let your debt scar you. Get out now and stay out of debt. That’s the only way to really get ahead and make the most of all of your hard-earned cash. Here are some tips to help you avoid digging yourself into debt:

• Add it up. It might make you a little queasy, but you’re better off knowing where you stand. Get all of your bills together and do the math.
• Less cards = more control. Did you know that half of college undergrads had 4 or more credit cards?³ It’s time to get rid of that card you opened for a free T-shirt on the first day of class and keep it manageable. Have you heard of debt stacking? It’s a great way to gear down your debt. Take a look:

• Check your credit. Did you know you can get your credit report for free once a year? Visit AnnualCreditReport.com (877-322-8228). You might have a “don’t ask, don’t tell” policy on your debt balance but your credit score is the number one thing banks, creditors — and future employers — look at, so you’d better know what’s up.
• Develop a budget. Ugh. The B-word. Budgets are boring, right? Maybe, but for some, this can be a major wake-up call. If you seem to run short at the end of the month and can’t figure out where the money goes, this is a great way to discover less than stellar trends in your spending habits.
• Learn from your mistakes. “Nearly one in five 18- to 24-year-olds is in ‘debt hardship,’”⁴ so even if you’re in over your head right now, you can make a couple of strategic changes and get back in the black. As soon as you learn from your mistakes, you can start taking a step in the right direction … and that’s money in that bank!

1. CreditCards.com, viewed on October 11, 2011, Money.MSN.com, November 8, 2011
2. LifeInc.Today.com, June 9, 2011
3. CreditCards.com, viewed on October 11, 2011
4. Ibid

* The examples are for illustrative purposes only. The Debt Stacking concept assumes that: (1) you make consistent payments on all of your debts, (2) when you pay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt in your plan (therefore you make the same total monthly payment each month toward your debts) (3) you continue this process until you have eliminated all of the debts in your plan. In the example above, when the retail card is paid off, the $220 is applied to credit card 2, accelerating its payment to $573. After credit card 2 is paid off, the $573 is applied to the car loan for a total payment of $1,124. The process is then continued until all debts are paid off. Note that the total payment per month remains constant.

Before you travel, follow these tips to protect yourself from identity thieves.

1. Let your credit card company know when you’re traveling (especially if leaving the country). Fraud departments have become more vigilant about monitoring unusual activity.
2. If you get a call or email about suspicious activity on your card, don’t give out personal information or call the number on the message (an oft-used trick by identity thieves). Instead, call the customer service number on the back of your card.
3. Suspend your mail delivery until you return. Your mail can be a treasure chest of information for identity thieves.
4. Remove credit cards you won’t be using and other personal information from your wallet, and copy any important documents (driver’s licenses, passport, health insurance card, etc.) so you’ll have them in case your wallet is stolen.

-Kiplinger’s, June 2011

The end of the year is approaching fast. Do you need a financial tune-up? Here are a few areas to consider as you reflect and review:

Review your credit cards. Do you have a stellar credit score? With industry competition fierce for your business, you may be able to ask for – and receive – a lower Annual Percentage Rate (APR). While the average variable APR for credit cards is 14.46%, those with super-high credit scores can actually cut that in half (see chart below). If you’re among that elite crowd – and aren’t happy with your current rate or terms – try contacting customer service. You could negotiate your way to a better rate, or persuade them to waive the annual charge.

What’s your get-out-of-debt plan? Are you worried about your debt? If you’ve ever thought about making a dent in your debt (or changing your credit habits), now’s the time! Approximately 63% of Americans who are in debt say they worry about money one to three hours a day, and 22% worry four-plus hours a day. If you’re among them, ask your Primerica Representative how Primerica Debtwatchers™ can show you how to create a plan to gain control of your credit for good.

Check your emergency savings.  Do you have three to six months’ salary stashed?  If not, you’re not alone – a majority of Americans say they don’t have enough cash on hand to cover a $1,000 emergency expense.[1]  To find extra cash for your emergency fund, get creative:  take on extra work (ask your Primerica Representative how you can earn extra money part-time by helping families with their finances) or trim some of the “extras” from your monthly bills (think entertainment costs like dining out and cable/satellite service).

Review your life insurance coverage.  If you have had a change in your life – such as the birth of a baby – this is crucial.  Financial experts generally recommend about six to 10 times your annual salary.  Nearly a third of all U.S. households have no life insurance, the highest percentage in more than four decades.[2]  Among households with children younger than 18, 40% said they would immediately have trouble keeping up with living expenses if a wage earner passed away.[3] Don’t let a troubled economy put your family’s financial future at risk:  Talk to your Primerica representative to make sure you’re (still) properly protected.

 Re-shop your auto insurance.  If you haven’t comparison-shopped your rates lately, give it a try!  For an identical six-month policy, costs can vary as much as $500 across carriers – yet only 20% of consumers actually take the time to shop around![4]   Too busy to shop?  Ask your Primerica representative about Primerica Secure®, a referral program that shops multiple carriers for you!

Do you have a will?  Two-thirds of Americans do not, according to a 2010 survey.[5]  You can pay a lawyer anywhere from $100 to $1,000 to crate a will,[6] or ask your Primerica representative about the Primerica Legal Protection Program (PLPP), which includes free will preparation among its many benefits.

Life insurance can be confusing. Most people know they need it but procrastinate because they don’t know what kind they need or how much. Primerica was founded on the conviction that term life insurance is the best type of coverage for the vast majority of people.

Back in 1977, Primerica revolutionized the life insurance industry by showing families how they could get the coverage they needed at a price they could afford with term life insurance.

What Do the Experts Say?
Personal finance gurus and consumer advocates are almost universal in their praise for term life insurance.

“Buy enough term coverage to fill your needs. Life insurance is no place to skimp, especially with rates at historic lows.”
CNNmoney.com, Viewed July 21, 2011

“Term insurance is pure protection, like fire insurance or auto insurance. Its sole function is to support your family if you die. You can buy large amounts of coverage for modest amounts of money – and big policies are what your spouse and children need. Most breadwinners are seriously underinsured, partly because they’re wasting their limited budget on cash-value coverage. Only with term will you be able to protect your family well.”
Making the Most of Your Money Now, Jane Bryant Quinn, 2009

“For most families, term life insurance is the simplest and cheapest way to go.”
Insurancenewsnet.com, December 3, 2010

“For most people, term life still offers the best combination of coverage and cost.”
WSJ.com, May 28, 2011

Term Costs Less than Cash Value Insurance
Term insurance is the most affordable type of life insurance for healthy young and middle-aged people. Most families can afford the generally recommended seven to 10 times annual income of coverage. (CNNMoney.com, July 29, 2010)

Term Separates Your Insurance from Your Savings
At Primerica, we believe in the “Buy Term and Invest the Difference.” This simply means that you protect your loved ones’ financial welfare with our affordable term coverage and regularly invest the savings.

BTID especially works well when investing for the long term, such as for retirement or education. The average annual rate of return of the stock market over the 30 years from December 31, 1980 to December 31, 2010 was 10.71%. (Morningstar)[1]

Term and the Theory of Decreasing Responsibility
Long term investing, such as with BTID, goes hand in hand with the Theory of Decreasing Responsibility. Basically, the Theory states that most people’s greatest need for insurance coincides with early adulthood and early middle age when many are supporting young families.

When you are younger, you may have young children to support, a new mortgage payment and many other obligations.  And you have all this at a time when you haven’t had the time to accumulate much money. The death of a breadwinner would be financially devastating for your family at this time. It is at this time that you need life insurance coverage the most.

When you are older, you usually have fewer dependents and fewer financial responsibilities. Children are grown, the mortgage is paid or much reduced, and many routine payments have disappeared. Moreover, you’ve had years to accumulate wealth through savings and investments.

Primerica Term Life Insurance – the Answer for Main Street Families
The reasons are simple and compelling for families to protect themselves with term life insurance offered through Primerica.

• Term is the simplest, most straightforward type of insurance available
• Term insurance is, by far, the most affordable for families
• Term insurance does not have an investment component built in, so you’re able to manage your long-term investing separately

The holidays are coming up soon. Take note of these credit red flags – and put your card away at these times.

1. After midnight. Your judgment may be off at this time of day, so turn off the computer, put your card away and wait till morning.
2. When you’re near your credit limit. Credit counselors advise staying away from even a couple of hundred dollars of your credit limit to avoid any negative impact on your credit score.
3. When you get a notice that your rate will go up. You may be able to negotiate with your credit card company for the old rate, switch to a new company with a lower rate or avoid using credit altogether.
4. You’re paying one card with another, habitually. If you’re bouncing your balance around from one card to the next, you should be aware that moving it around every six months or so may show up on your credit report. Also note that transfer fees have gone up to about 4% of your debt.
5. If you don’t have a plan for paying it off. If you’re still charging more than you can pay off each month – and have too much revolving debt – Primerica DebtWatchers can help you create a plan to pay off your debt, and help you stick to it!

Source: Creditcards.com, viewed July 13, 2011

College costs have skyrocketed: a 467% jump since 1986, compared to an inflation increase of 107%! Here are some ways to trim the bill.

Advanced Placement Exams.
High schoolers can earn college credit through Advanced Placement tests, and 90% of four-year colleges in the U.S. will count them as college credit. This can save you a semester or more of classes – and shave big bucks from your tuition, room and board.

Stay Close to Home.
Staying at an in-state public college can keep costs lower than a private or out-of-state college (tuition is usually lower for in-state residents). For even lower costs, consider attending a nearby community college. Students who have yet to decide on a major can get prerequisite classes out of the way for a fraction of the cost, and transfer later if they choose to go to a four-year university that ranks high in their field.

Rent Textbooks.
These days, even used textbooks are expensive. Consider another option: renting books through a service such as chegg.com or bookrenter.com, which boast student savings of up to 80%. Some services will ship anywhere in the country with free return shipping.

Stretch Your Savings.
If you have a child at home, consider opening an Education Savings Account today for him or her. It’s an excellent way to keep up with rising college costs and stretch your tuition dollars. Your Primerica Representative can help you get started today.

Source: Money.msn.com, July 12, 2011

Today many families are struggling just to pay the bills – 22% say they have missed payments on bills in the past year.  During these tough times, you may be tempted to skip or skimp on life insurance.  However, this is one area where it’s best to stay up-to-date.

Why?  Consider what the sudden loss of a working parent could mean to your family’s financial future.  Are you a single parent — or know someone who is?  “Life insurance can be twice as important for a single parent.”[1] Yet, 69% of single parents with children living in the house have no life insurance at all.[2]  If this applies to you or someone you know, your Primerica representative can help.  He or she will help you become properly protected with low-cost term life insurance.  It costs five to 10 times less than costly whole life insurance![3]  “Once you accept that all you need is term insurance — it’s the most cost-efficient way to get coverage — the process is easy.”[4]

In order to cut costs, the Social Security Administration is suspending the annual mailing of your benefits statement.

It contains a summary of your earnings history and estimated retirement benefits. (The statement generally arrives three months before your birthday month; the last group to receive the mailed statement will have July birthdays.) You can still view your benefits summary online at www.ssa.gov/estimator, but this will not have the full range of information contained in the mailed statement. Starting in October, mailings will resume, but only to folks age 60+ who are not currently receiving benefits. Your best bet? Take control of your future retirement health by increasing contributions to a tax-advantaged Individual Retirement Account.

Are you worried about money? The amount of debt you have can take a toll on more than just your bank account and savings plan. It can impact you emotionally, as well.

With the economy struggling to make a comeback, the average American is spending 3.3 hours each day worrying about money:

Are you worried about your financial future? Get a new outlook! Ask your local Primerica representative for a free Financial Needs Analysis today.

]]> http://www.askprimerica.com/worrying-the-day-away/feed/ 0