More Information--SCAM ALERT!!

On 1/25/09 I wrote about the "mystery shopper" scam mail I received. Whilst listening to a Clark Howard pod-cast he also mentioned "money transfer scams" and mentioned information that Western Union has posted on their Website. This the link to the page where you can find those articles (taken directly from the Western Union site:

Fraudsters are always coming up with new, creative ways to try to get your money. The best way to avoid being a victim is to be educated.

Learn more about these scams with these helpful articles, courtesy of Western Union.

• Watch Out for Lottery Fraud
• Buyer Beware
• It's No Accident
• Beware of Up-front Payments
• Millions Waiting to be Shared
• They've Found Your Dog
• "Dream" Job Only a Dream?
• When Easy Money Isn't Easy

Hope this is helpful!!

SCAM ALERT!!

On Thursday (1/22/09) I received a wonderful piece of mail, a check for $3730 from GLOBAL MARKET CONSULTANT INC. The catch, I was selected to participate in a "Paid Consumer Research Program" as a "Mystery Shopper" for my area. All I have to do is deposit the check, use $150 for shopping, $100 for training pay, and $3480 for "evaluating" Money Gram (letter does not state to whom the money will be sent, but assuming back to GMCI)<--RED FLAG.

At first glance my thought was kewl! Feasible as I have had contact with many programs and on-line surveys; I have also had free samples sent to my home for "testing". Have also inquired about 'mystery shopping" in a round-about way but nothing definitive.

So like a smart person I started checking for information. Nothing listed in the BBB, which in itself doesn't mean anything. Googled the company, again nothing. Re-read the letter, noticed the Canadian mailing address<--RED FLAG. Then I remembered reading somewhere about a similar scenario that was determined a scam, so started looking for that information. Here it is, (taken directly from American Consumer Opinion website:

WARNING!
Mystery Shopper Scam
A fraudulent Canadian company is using the American Consumer Opinion® name [ACOP not mentioned by name in my letter] to mail counterfeit checks for thousands of dollars, instructing you to deposit the check and then wire part of the money back to them. The company falsely claims the money you wire will go toward your training to become a mystery shopper. This is a criminal and illegal scam. Do not attempt to cash or deposit the check. Do not wire any money to anyone. Membership in American Consumer Opinion® is always free.
Thank you.
Anne Parks,
Vice President of American Consumer Opinion®

Watch out peoples, I almost fell for it. As the ole adage goes, "if it sounds to good to be true,,,"

Peanut Butter Recall

Received this from ConAgra Foods concerning Peter Pan Peanut Butter:

Dear Loyal Consumer:
In recent days, you may have heard news regarding the safety of certain types of products that contain peanut-based ingredients.
We can assure you that all of the products made by ConAgra Foods, including our popular Peter Pan Peanut Butter, are safe to enjoy, and no ConAgra Foods products have been recalled.
We've confirmed that none of the products we make contain any peanut ingredients made by Peanut Corporation of America, the company at the center of the government's investigation of an outbreak of salmonella-related illnesses. We also have confirmed with our suppliers that they do not purchase any ingredients from the Peanut Corporation of America.
We are extremely confident in the safety protocols, including stringent quality testing, for Peter Pan Peanut Butter and our other products; and we appreciate your continued loyalty as you shop for the food your family loves.
If any of your friends or family members have questions about the safety of their products, including Peter Pan Peanut Butter, please feel free to share this email with them.
For more information about the government's investigation, we recommend you visit the U.S. Food & Drug Administration's website. If you have any other questions, please contact us or call 1-800-222-7370.
Thank you for your loyalty and patronage of our brands.
Sincerely,
ConAgra Foods, maker of Peter Pan Peanut Butter

Gethuman.com

Found this web-site while surfing through TBH's blog. Thought it might be helpful to have on hand.

"When you're tired of wasting money and time due to phone systems that require you to press 10 or more options in order to reach a real person and spending many minutes or even hours on hold, consult the GetHuman database of secret phone numbers and codes that immediately get an actual, live person on the line for customer service at nearly 1000 major companies."

Sounds good to me :))

Is Debt Reduction Finally Getting It's Due Recognition?

While channel surfing the other day (7/8/07) I caught this program on CNBC. Seeing that I actually was able to watch from the beginning I was able to tape (yes I still use a VCR) it in order to "study" the full contents. Following is an outline of what was presented.

[Note: there are four seperate but connected programs in this series. I happened to catch the show dealing with debt.]

The Millionaire Inside--Debt Free hosted by Erin Burnett. Mentors for this episode include:

• David Bach author of The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich
• Robert Kiyosaki of Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not! fame
• Larry Winget is the author of It's Called Work for a Reason!: Your Success Is Your Own Damn Fault
• and Jennifer Openshaw author of The Millionaire Zone: Seven Winning Steps to a Seven-Figure Fortune and founder of WFN.

Introduction

• becoming a millionaire has two key components--get out of debt and use debt to build wealth
• MI looks at the new face of debt...debt doesn't discriminate, it touches everyone...Americans are spending too much and saving to little
• recognize your mistakes, debt can creep up when you lest expect it
• controlling $$ means controlling destiny

Q: What does it take to motivate most people to change?

• before things can get better they must get worse
• it's OK to feel bad about what you've done BUT turn the negative into a positive change

Q: What are the first steps that will get people out of debt?

• figure out exactly where your $$ is going
• find a way to make more $$ and pay yourself first, save even while paying down debt

Q: Is bankruptcy an option for someone in debt?

• NO--bankruptcy should not be your first choice
• bankruptcy will destroy your credit and your future
• BUT if you do go bankrupt, don't despair, there is hope

Q: What can people do to avoid making financial mistakes?

• investing in financial education is very important
• rich or poor, smart or not smart we all use $$
• the more you know, the more money you'll make
• take responsibility for your actions, have integrity
• stand by agreements and honor your word
• doing the right thing always pays off in the long term

PROFIT POINTS

1. control your money & your life
2. plan your future now
3. avoid bankruptcy
4. you can get out of debt

You keep turning to plastic and plastic keeps turning you upside down--we are a maxed out nation

Credit Card Debt

• Sharon Epperson author of The Big Payoff: 8 Steps Couples Can Take to Make the Most of Their Money--and Live Richly Ever After
• CC companies prey on people who make $$
• average person carries way too much debt, most have carryover monthly balances
• CC companies don't want you to pay, that's how they make money (ie. late fees, over limit fees)
• CC companies profit from penalty fees, it's big business, don't get sucked in
• how can you beat the CC companies at their own game? implement a plan to help you reduce your debt
• Americans love to overspend--a lobster lifestyle on a tunafish budget
• if you have to charge it, do you really need it?
• don't stoop to competing with the neighbors
• do what's right for you and live on a budget
• only spend $$ on things you really use--every penny counts, think about every purchase

Tips that will get you out of debt

• start by paying debt with highest interest first
• ask for a lower interst rate, especially if your a long time customer
• wipe out CC debt as fast as you can
• use other CC offers to negotiate better rates
• know your CC rate
• be persistent, be firm and stand your ground
• it's important to knock debt out fast, attack debt that you know you can eliminate

Q: Is consolidation a good way to reduce debt?

• plastic isn't the problem, your spending is
• consolidation is an option, but paying more than the minimum is better
• consolidation scams are everywhere, BE CAREFUL
• don't use a home equity loan to pay down debt--that's converting a short term debt into a long term debt

Q: Is it smart to borrow on CC to invest?

• only borrow to invest IF your return rate is higher than your interest rate

Q: Should you use your retirement savings to pay down debt?

• NO--under no circumstance should you cash out a 401k
• change your habits and cut back
• there are penalties for cashing out a 401k early
• your 401k should grow, leave it alone
• make contributions to your 401k so your comapny matches (if an option), it's free $$

Q: What kind of CCs are the worst to have?

• department store cards are the worst, they are designed to rip you off; high interest rates and they will not negotiate
• get rid of all CCs but one, use only for emergencies

PROFIT POINTS

1. call and negotiate interest rates
2. tackle small debts first
3. beware of debt consolidation scams
4. don't waste $$
5. mistakes are OK, learn from them

Medical Debt

• the #1 cause of bankruptcy
• the US is in a health care crisis, people with no insurance or the under insured drowning in medical debt
• need to make health insurance a priority
• cut spending and get yourself health insurance

Q: Should medical and consumer debt be treated the same way?

• debt is debt, make payments and work it off
• try and negotiate a payment program; if you have been delinquent explain it on your credit report
• scrutinize your medical bills for mistakes and/or over billing
• try to communicate with your creditors, this will help you deal with your debt
• with 44 million people without insurance check with your states high risk insurance programs

Q: How can people cope with aging parent's healthcare issues?

• reverse mortgage
• a VIATICAL can be used to get cash for medical bills
• long-term insurance(s) for parents a must

Q: How does medical debt impact your credit?

• medical debt can destroy your credit
• medicare/medicaide don't cut it anymore, keep yourelf healthy and avoid getting sick

PROFIT POINTS

1. negotiate with medical providers
2. consider long-term care insurance
3. carefully review medical bills
4. stay healthy

Student Loans

Debt can make ou rich, the secret is knowing how to leverage to build wealth.

Q: Are student loans good debt?
Q: How should people approach paying down student loans?

• take our time especially on low interest loans
• prioritize--home purchase, consumer debt, etc.
• consolidate to cut costs

Other ways to use debt to build wealth

• eliminate bad debt and take on good debt
• BAD DEBT--debt you have to pay for
• GOOD DEBT--debt other people pay for
• your home is a good investment, but a bad debt; buy an affordable home that you can pay down
• invest in rental properties, let tenants pay the mortgage

Q: When is the right time to buy a property?

• by a property when tenants can pay the loans

When it comes to real estate, timing is everything.

• real estate is a finance deal
• owning a property is a way to get tax deductions
• know the rules of the game and play it well

Q: Is it smart to save and invest as you pay down debt?

• get a business partner, this will allow you to invest as you get out of debt

Q: How should savings be invested?

• place your savings in interest bearing accounts
• gear up to find good deals on home purchases
• always invest in yourself first, get educated and make smart decisions
• you want high returns, so think through investments

PROFIT POINTS

1. don't rush to pay of student loans
2. leverage to build wealth
3. save and invest as you pay down debt
4. educate yourself on the rules of money

Closing

Q: What is one thing we can do tomorrow to start getting out of debt and on the road to wealth?

• make a list of all the "people" you owe money to and hang it on your frig--decide which debt you are going to get rid of first and start making lines through each as you eliminate them one by one
• open up your checkbook, take a look at your top five expenses and look for ways you can free up $300 and put it in a savings account until you can make your first investment purchase or start a business
• call all your credit cards and ask what your interest rate is--then negotiate for a lower rate, be persistent and keep calling
• figure out how much money you are making, then figure out how much you owe, cut back your lifestyle so what you owe is less than what you earn

Upcoming Programs

• Your Guide to Wealth 8/8/07
• Your Guide to Retiring Rich 8/13/07
• Debt Free 7/24/07 & 8/20/07
• Get Inspired 7/28/07

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