One stereotype that young people have is that they are naïve, and sometimes this stereotype is right on point.  I know I’ve been taken advantage of many times.  Sometimes someone very smart meant to do it to me and other times I was just so uneducated that I let it happen to myself.  This article is meant to try and give you a leg up when it comes to being a victim of counterfeiting. 

The Government is introducing a new $100 bill in February of 2011 and it’s never too soon to educate yourself about it.  The beauty of this new bill is that some of the safety features are amazingly easy to spot, and this should make it much simpler for an average Joe to spot a fake.

The two major features that will allow you to spot a fake are the 3-D strip that is just to the right of the presidential portrait and a bell in an ink well that changes color as you move the bill.  The color-changing ink is a feature that has already been used on other bills, but this time it’s much easier to spot.  Before this, the color-changing ink was used to make the number 100 in the bottom right hand corner change colors, but now the color-changing ink makes the bell look like it vanishes and then returns.  There are other new safety features as well, but these two are the ones that the general public will use the most to spot counterfeit bills. 

Below are a couple of links to a government website that is meant to help educate the public on this new bill and how it’s safety features work.  The first link is episode one of a podcast that is dedicated to the safety features I discussed in this article.  The second link will take you to the homepage dedicated to the new bill, and will allow you to watch more podcasts dedicated to helping you learn about its security features.  I hope this will help you avoid being taken advantage of in the future.

Click the bill to go to the podcast!

Click the bill to see the government's homepage for new money!

When you’re in your 20’s, like I am, your credit report is rarely on your mind.  The exception to that is when you apply for a car loan, try to rent property, etc.  These reports are a major factor in determining whether or not you can be approved or denied when trying to get a loan.  You should be completely informed on whether your credit is good, average, or bad.  An amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting bureaus to provide you with a free copy of your credit report, at your request, once every 12 months. For more details about this visit http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre34.shtm

The main points that are looked at in a credit report are:
1. Credit utilization (The ratio of your debt to your available credit)
2. Payment history (Whether you paid on time or late)
3. Length of credit history (Self explanatory)
4. Types of credit history (Mortgage, Credit Card, etc…)
5. Recent credit history (Shows whether or not you have learned from prior mistakes)

After doing some searching I was able to find a survey done in 2004 by U.S. PIRG, the federation of state Public Interest Research Groups, that asked adults in 30 states to order their credit reports and complete a survey on the reports’ accuracy.  Here are some the findings that are very interesting to say the least.

•  25% of the credit reports surveyed contained serious errors that could result in the denial of credit, such as false delinquencies or accounts that did not belong to the consumer.
• 54% of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect.
• 22% of the credit reports listed the same mortgage or loan twice.
• Almost 8% of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer.
• 30% of the credit reports contained credit accounts that had been closed by the consumer but remained listed as open.
• Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.

These errors can be detrimental to your financial future, but don’t worry they can be fixed in a couple of different ways.  First, you can notify any ELGA loan officer who you are working with of the mistake.  They will send in a verification worksheet to the company that the credit report was pulled from and ask that company to look at and correct the errors.  Second, you can try to fix them yourself by contacting your credit reporting company in writing and get them fixed that way.  For more info on doing it yourself go to http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm.

I hope this helps and if you have any questions or comments tell us what you think.

• Penalty Fees: You cannot be charged more than $25 for a late fee unless one of your last 6 payments has been late.  Your late payment fee cannot be greater than your minimum payment.
• Fee Protection: You can no longer be charged an inactivity fee for not using your card.  Companies cannot charge you more than one fee per transaction.  For example, you cannot be charged a late payment fee that puts you over your credit limit and then be charged another fee for being over your credit limit.
• Interest Rates: Credit card companies must now notify you of all rate increases.  If you do have your rates increased, they must be reevaluated every 6 months.  If, after the evaluation, an adjustment is needed, the company must reduce the rate within 45 days of completing the evaluation.

What do you think of these new rules?  Do you think they will help the consumer or will the credit card companies find a way around them?  Voice your opinion by leaving a comment!

What a lot of people have forgotten is that patience affects every aspect of our lives, not just our finances.  Because of the bombardment of ads making us think we need a product this minute, our patience when purchasing has diminished.   This then can bleed over into other aspects of our lives and we find ourselves feeling like everything should be done for us this instant.  Patience is difficult because it goes against everything society is telling us.  On the plus side I’ve noticed that the more patience I can show in every day life, the more I have when it comes to making purchases. It’s easier to wait an extra month or two to save a couple hundred extra bucks for that new TV instead of putting that couple hundred on to a credit card.  That may not seem like a lot of money to put on a credit card, but if you do that a few times with different purchases it can build up quickly. On the flip side, if you can save a little more and put less on a credit card, you’ll notice your savings can build up very quickly.  Soon you’ll find yourself only making purchases you can afford to pay for right away, and paying less and less interest.  Trust me, it’s a great feeling. 

Now your question may be “how can I become more patient?” The first thing to remember is that, like most things, this will be a slow process. Here are a few good tips that I came across on www.thesimpledollar.com.  “Take the other side’s perspective.  This is a great technique for gaining patience with others. Whenever you feel your blood rising, take a moment to look at the situation from the other person’s perspective. Why are they behaving this way? Would you blowing your top or acting rashly cause them to change their behavior? Just a few seconds of reflection on this is usually enough to calm down”.  

An example of when I try to put this into practice is traffic jams. I used to get mad whenever I was in a traffic jam.  I would imagine the person who caused it and think about how they must be a bad driver.  I couldn’t believe I was being forced to waste my afternoon waiting in line.  It was all about me…me…me… how this affects me.  Now the first thing I try to do is think of the person who may be hurt up ahead of the line of cars.  I think of how I am much luckier to be stuck in my car rather than being lifted into an ambulance.  I like to say a little prayer to ask for that person to be ok and not have any major injuries.  When you have that mindset your wait seems a lot shorter and it’s easier to realize they don’t want to be in the situation either.

Another trick that I found at www.persistenceunlimited.com is to “Do something else. A surfer can curse the ocean because there are no waves or he can ‘take a vacation’ and go to a movie, read a book, learn to whittle until the waves return”.  Just because you can’t do what you want this instant doesn’t mean you can’t be productive.  If you’re waiting for a response to an email, don’t sit at your computer refreshing the window constantly.  Instead, look for something else that’s a small quick task and get it done, then check for your response.  If it’s not there, busy yourself some other way.  The point is to not to sit and stew over something you can’t control.

These are just a couple of examples of how you can become more patient.  Take these into your every day life and see how much better you feel.  This patience will translate to your finances and you’ll see the results there as well.  The biggest things to remember are to take it one step at a time and have a little patience with yourself. 

Your opinion matters!  Tell us what you think in the comment box below.  Could our society and generation benefit from practicing more patience?

http://www.thesimpledollar.com/2008/02/18/nine-techniques-for-developing-patience/

http://www.persistenceunlimited.com/2006/03/the-8-point-plan-to-increase-patience-when-the-going-gets-tough/

How to get in trouble with credit cards: Just because you have $400 in your bank account and a $500 limit on your credit card doesn’t mean you have $900 to spend. You have $400 and the possibility of going $500 in the hole while paying interest on the $500 as well. I’ve watched friends get into the bad habit of buying a pop and some beef jerky every time they stop to get gas. This habit was formed because they didn’t see the money leaving their hands; all they had to do was swipe a card. Doing this tends to snowball until one day you look at your statement and you owe over $1,000 in whimsical purchases. A good mindset to instill in a friend, family member, or yourself at a young age is that credit cards should not be used if you do not have the cash in the bank. There are only two times you should be using your credit card to purchase things. The first is if you can pay for it in cash as soon as the bill comes, and the second is for emergencies.

Taking things to the extreme: A common problem with credit cards is people taking them to the extreme, and I’m not just talking about maxing them out. A common scenario you hear about is someone maxing out a card, freaking out after seeing the bill, cutting the card up, and then paying off the bill bit by bit. To me this seems like the worst way you can use a credit card. You’re paying a large amount of money in interest and after you cancel the card your credit score goes down. This is a perfect example of how people use their credit cards to build up debt instead of credit.

A little self control can go a long way: If you show some self control and can stay on top of your payments, credit cards can be your best friend. Not everyone knows this, but your credit score is affected negatively by canceling a credit card. Your credit score in part is based on how much credit you have available and how many times you’ve been late on payments. The best way to use credit cards is to use them only for purchases you can payoff at the end of the month. Use credit cards to build your credit without building debt. If you feel like you’ve got a good handle on it, don’t be afraid of raising your credit limit on a card or getting a 2nd or 3rd card.

Working the system: Having more than one card and not using them all is a good way to keep your credit score high. But credit card companies have caught on to this and are trying to get paid even if you don’t put money on your card. A lot of companies will charge you an inactivity charge for not using the card for a certain period of time. That’s right they charge you for not spending money. This, however, is easily fixed. Once again all it takes is a little self control. My method is to use one card per month, pay it off, and then use a different card the next month pay it off and repeat. With this method you can really boost your credit score and avoid paying interest. Like most things in life a little self control can go a long way.