Bundling can save you a bundle

NEW YORK (2/13/08)--Don't toss that telecommunications offer in the trash too quickly. You could save some loot by bundling services (MarketWatch Feb. 5).

Bundling means you'll receive Internet, TV (cable or satellite), and phone service from the same company--generally at a lower cost than you'd pay for individual services from different companies--and all on one bill.

To find if bundling might be for you, pay attention to these points:

Real rate. Know what you'll be paying when the promotional period ends. To get the best deal, you may have to commit to a year or two of service (ChicagoTribune.com Jan. 27). Or, bundle promotions might come with extras such as additional TV channels at no cost. But when the promotion ends you could be billed for these services if you don't cancel the extras on your own.

What you're paying for extras. Your first month's bill might be quite high. In addition to monthly fees and taxes, look for start-up costs and charges for remotes or cable boxes. If you selected premium channels, you'll be billed for those as well.

Same phone number. Most companies will let you keep your old number unless you're moving or trying to maintain a nonlocal number. If there's a charge for switching numbers, ask the phone company to waive it--most will do this to hook a new customer.

Service limitations. If you make too many calls you might be charged for the extras. Or, your Internet upload and download speeds might be affected if your computing habits typically exceed the company's bandwidth limits.

Though bundling might save money for most, it's not for everyone. If you're happy with the services you're already getting, you might not want to risk sacrificing quality or service. Maybe you don't want all your eggs in one basket. Maybe you don't need all three services or you don't use some or all of the services often. And if you use a cell phone for most calls, you might not need a landline at all.

courtesy of cuna.org

Crooks use rebate checks to snare victims

ATLANTA (2/11/08)--Crooks are drumming up new ways to heist money from victims' financial accounts. Some of those scams use the government's new economic stimulus package's proposed rebate checks as bait (Associated Press via CNNMoney.com).

Despite well-publicized warnings, victims unwittingly hand over personal information--such as account numbers or Social Security numbers. Internal Revenue Service (IRS) officials warn that a variety of scams could be around through the end of the tax season and beyond (irs.gov Jan. 30).

Be on the lookout for these phone and e-mail scams:

Give account info for direct deposit of rebate. The caller claims to be from the IRS and promises a sizable rebate in return for bank account information--which supposedly is required for the direct deposit. If you refuse, you're told you can't receive the rebate. Hang up--it's a scam.

Click on link for refund claim form. This bogus e-mail message looks legitimate, but if you respond and enter personal information, expect your accounts to run dry.

Click on link because your return is being audited. The link prompts you to complete forms with personal and account information. Hit the delete button and keep identity thieves at bay.

Check not cashed--please verify account info. The caller claims to be from the IRS and to have sent out a check. But don't comply with any request for an account number over the phone--or in an e-mail message.

Bottom line: Don't let rebate-check anticipation cloud your senses. If a tax preparer tries to convince you to take out a short-term advance loan on your stimulus rebate check, just say no.

Consumer advocates expect these loan products--which carry excessive interest rates typically aimed at people who can't afford them--to pop up as soon as rebate checks are in the mail.

courtesy of cuna.org

Scholarship money at your fingertips

CHICAGO (2/6/08)--Hoping for a scholarship to help curb the high cost of tuition? Start applying now, because many applications are due within the next two months (Sun-Times Jan. 21).

With the average size of a scholarship around $2,000, knowing where to look for scholarship money is key. About 6.9% of undergraduate college students receive private scholarships.

Several free scholarship databases, such as fastweb.com and scholarships.com, are available on the Internet. The College Board, collegeboard.com, also has a list of scholarships.

In addition to searching the Web, talk to a high-school guidance counselor or college financial aid adviser. Other places to find scholarships:

School activities, academic clubs, or athletic organizations;
Student's employer;
Parent's employer
Parent's union;
Church or religious organization;
Local government;
Local businesses;
Local newspaper; and
Credit union.

For more information about acquiring scholarships, read "Make Up for College Savings Shortfalls" in Home & Family Finance Resource Center.

courtesy of cuna.org

Struggling homeowners have access to resources, help

McLEAN, Va. (2/4/08)--Last week's housing reports painted a bleak picture for homeowners already struggling as subprime rates begin to adjust upward, but there are resources available to help (USA Today Jan. 30).

More than 1% of homeowners faced foreclosure in 2007, up 79% from 2006, according to a report from RealtyTrac (Jan. 29), a real estate marketing company based in Irvine, Calif. As home prices fall, homeowners discover that the mortgage exceeds the value of the house. To make matters worse, U.S. Census data put the home vacancy rate at 2.8%, with 2.18 million homes on the market in the fourth quarter.

Refinance inquiries have spiked since the Federal Reserve lowered interest rates twice last month, ABC News reported Jan. 30. However, many borrowers are stymied by lower appraisals that prevent them from refinancing into loans with easier terms (Reuters Jan. 29).

What's a financially strapped homeowner to do? Seek help immediately:

Contact your loan servicer. Don't wait, and don't be embarrassed. Provide detailed information about your income and expenses. Foreclosure is a cumbersome, expensive process, and reputable servicers prefer to avoid it.

Check out online resources. One excellent website is MyMoney.gov, which recently added new resources for homeowners facing foreclosure, according to the Credit Union National Association's center for personal finance. Click "Home Ownership" and then "Foreclosure Resources for Consumers" for links to agencies and organizations that can help.

Call the HOPE Now hotline. Dial 888-995-HOPE for access to Department of Housing and Urban Development (HUD)-approved credit counselors. The hotline was established by Treasury and HUD officials in August 2007, at the direction of President Bush.

Be on the lookout for scams. Predators are stalking distressed homeowners, hoping to cash in on the mortgage mess. So-called rescuers may trick you into selling your home for a fraction of what it's worth, or dupe you into signing documents that transfer the title out of your name.
If you're thinking of refinancing, contact your credit union, and take advantage of online mortgage comparison calculators, such as federalreserve.gov/apps/mortcalc/.

For more information, read "Calculator: Do I Want a Fixed or Adjustable Rate Mortgage?" in Home & Family Finance Resource Center.

courtesy of cuna.org

Consumer Brief

SCHAUMBURG, Ill. (1/31/08)--Record-breaking gasoline prices have resulted in substantial changes to our spending behavior, according to research from the Nielsen Company. Based on responses from nearly 26,000 U.S. consumers, the study revealed that shoppers are combining trips and errands (70% said they are doing so), eating out less (41%), and staying home more frequently (39%). These findings come on the heels of a lackluster holiday sales season, despite an increase in online shopping as a way to deal with high prices at the pump. More than one-quarter (27%) of respondents said they're shopping more frequently at supercenters and big-box stores, and 25% are clipping more coupons. It's expected that food shoppers also will make up for reduced spending power by buying less expensive grocery brands (Nielsen Jan. 14)...