Credit Freeze

Thirty percent of U.S. consumers have been notified of potential compromise of their personal information in a data breach. In 2017, for the first time, more Social Security numbers were exposed than credit account numbers. Research finds that counterfeit use of credit cards is more difficult with the new microchip technology; as a result, criminals are focusing on new account creation. The number tripled in 2017 resulting in $5.1 million in losses. Now the Federal government is joining states to give consumers options to protect their credit history.

New federal legislation supports the right for individuals in all states to apply, free of charge, a credit freeze to their credit reports. The action can be taken after September 21, 2018.  By activating a freeze, you put a block on the creation of any new credit account by preventing prospective lenders from viewing your credit report. If lenders can’t confirm your capacity to repay a potential debt, they are unlikely to open an account in your name.   Iowa’s law went into effect in May.  Note: a freeze requires management; you must lift the freeze when applying for new credit.

If you are denied credit, lenders and agencies are required, by law, to send you documents informing you of your right to obtain your credit report and to dispute errors. The documents are now required to also notify you of your right to freeze your files.

In cases of identity theft, consumers have long had the option to place a fraud alert on their credit reports; the alert is a tip that this individual’s personal information was compromised, and consumers are still encouraged to pursue this action. The time frame for how long an alert is posted has been extended from 90 days to one year.  A fraud alert does not, however, block potential lenders from viewing your information; therefore it does not prevent unauthorized opening of new accounts in your name.

Joyce

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

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Plan for Change

The wife of a dear friend has lived in a care center for about 10 years now. I frequently cross paths with him and can see how much he misses her. I called him, excited to hear the details, when I saw on Facebook that she had moved back home. He explained that as her condition deteriorated over time, the cost of care in the nursing home had increased…so much so that they could no longer afford for her to live there.

That sounds like bad news, but it is truly turning into good news for them. You see, my friend has now retired from farming, and he can provide some of the care in their home. They have found it much more cost effective to hire a nurse to come at scheduled times to provide care and guidance for my friend, who wants only the best for his wife and is eager and able to be her caregiver. This solution has brought much joy to their home, as they are together again under the same roof.

As we plan for the future in retirement, we often think about three stages: early retirement when we do more traveling or activities that cost more…the middle years which cost less, when we are still healthy but do less because our goals have been met…and the later years when our health care cost rise. For my friend, the thought of bringing his wife home was not part of the original plan. Once he retired from farming and was more available to provide care, it made sense. It is important to make a plan but to also revisit that plan and see if it is still the best solution even after it has been implemented. Plans can always be revised.

The Finances of Caregiving is a series of five 2-hour workshops to expand your understanding of possible solutions for providing care for a loved one and help families plan together for the care receiver’s care. Understanding your choices means knowing your current situation. This program guides you through finding and collecting that information; it also provides information about communication strategies and options for care. To find a location of a program being offered near you, check out www.extension.iastate.edu/humansciences/finances-caregiving

Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Where Are Your Digital Assets?

First, what is a Digital Asset?  It is personal information that is stored electronically on either a computer or an online “cloud” server account.  If you use a computer, a password protected cell phone, social media, OR if you make online purchases, pay bills or do banking online – you have digital assets to consider.

Generally required is a user name and a password and/or PIN to access.  If a family member or friend becomes incapacitated or passes away, it is almost impossible to retrieve information without the user name and log in information.

Take time to record all of your digital assets in a safe place.  Share the information with the person to whom you have granted power of attorney, with your executor, and with other trusted people who would need to have it.

Need help identifying the potential digital assets? Consider the following:

Electronic Devices; Benefit Accounts; E-mail accounts; Financial accounts; online merchant accounts  – Amazon or Zappos.; Organization Accounts; Photography and Music Accounts; Publication Accounts; Social Media Accounts; Video Account; Virtual Currency Accounts with Cash Value; and Web Site Accounts.

So how do you plan for your digital assets? 

Use specific language in estate planning documents (will, trusts, and power of attorney) that authorizes your representative to handle digital assets as well as tangible assets.  Make a list of your digital assets in your will as you would for untitled personal property.  Don’t include private information (e.g. passwords) in your will, however, as it becomes a public document after someone dies.

 

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

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Prescription Costs: Cash vs Co-Pay

Prescription drug costs are getting a lot of media attention these days, sometimes leaving consumers unsure who to trust.  One question raised by news coverage is the question of how much we should trust our insurance plans to get us the best deal. According to a recent study, nearly one-fourth of all prescription purchases would be less costly to consumers if they paid cash rather than having their insurance cover the purchase. In other words, their co-payments were more than the actual cash cost of the medication.

The report said it is common for this overpayment to occur with generics. A news report gave an example where the difference was dramatic — a $285 copay compared to a $40 cash price. It seems unthinkable, yet it happens!

Consumers have told stories about this problem for years, but the recent paper from the Schaeffer Health Policy Center at USC was the first known systematic study, so only now are we learning how widespread the problem was; the study, which examined 2013 data, indicated that 23% of all prescriptions involved this kind of overpayment. A few states (not yet Iowa) have passed laws against this practice, but anecdotal reports suggest that it is still widespread.

I’m reminded of the classic consumer advice: “Let the buyer beware;” when in doubt, we need to check things out carefully, gathering information on our own rather than trusting an outsider’s guidance. In fact, the report mentioned that pharmacists’ contracts often include gag rules which prevent them from telling patients about this, unless they ask.

SO – next time I fill a prescription, I’m going to ask: how much would this cost if I just paid cash? If it’s cheaper to pay for it outright, then I’m happy to leave my insurance out of the equation.

Barb Wollan

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

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Rechargables Make Cents

In a kitchen cupboard, we have a box full of rechargeable batteries of every size. My husband uses them in the sound-cancelling ear protection he wears in the barns. I have several small, battery-operated motion-sensitive lights I use in the rooms where grand kids sleep. I also have a digital camera, Christmas lights, a battery operated pencil sharpener and other electronics, keeping our battery charger busy.

If I were to buy a four-pack of Duracell AA batteries each week (which sells for $6) to keep my husband’s hearing protection working, I would easily spend $312 a year. For $10, I can buy a four pack of rechargeable batteries. These batteries will last between 2 and 3 years. By using rechargeable batteries, we are keeping between 400 to 600 batteries out of a landfill…and that is just for the AA batteries my husband is using.

It used to be that rechargeable didn’t work well with some technology.  Today,  I do not find any difference and I greatly appreciate the savings. What has been your experience with rechargeable batteries?

Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Unpaid Debt

What happens if a credit card balance goes unpaid? If you aren’t receiving collection calls, does it mean the debt is no longer a problem?

All states have statute of limitation laws setting a time when a debt can no longer be collected. Credit card debt is considered open account debt because the lender has the option to change the terms of the agreement at any time. Iowa law states open account balances can no longer be collected after 5 years from the last charge, payment, or admission of ownership of the debt in writing.

Once the original lender has exhausted their attempts to collect and elects to discharge the balance, the debt is sold to collection agencies. Timelines vary for when an account is sold, typically at 180 days.  Collection agencies will contact you and attempt to collect a settlement. If the agency is unsuccessful they may bundle the uncollected debts and sell it again to a different agency. Attempts to collect your debt can occur at any time in the five year period and can result in court action. If the debt results in a court judgement to pay, it is valid for 20 years. Iowa allows actions to be taken to renew judgements extending the time when active collection can take place.

Ignoring unpaid debt won’t make it go away. Resources that may help are available through the Iowa Attorney General’s office, the Consumer Finance Protection Bureau, the National Consumer Law Center, and local attorneys.

 

 

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

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Coins can add up!

I just completed a pilot series online for a financial class called Small Change.  How many of you pick up coins off the ground or from pockets in the laundry?  With each dime or quarter, money starts to add up!  Starting with small change can pay off a small debt or help you save for one of your goals like a vacation, a down payment for a vehicle or your child’s higher education.

These small coins can make a big difference.  Twelve years ago my friends found out their daughter-in-law was expecting twins and during the six months, they saved their coins from purchases and emptied out their pockets: they were able to buy a piece of furniture – a dresser -for the grandsons.

I have participated in a group where part of our fund raising for scholarships is to save the coins.  We each have a nifty little box with a lid to transport our coins.  During a month’s time, the treasurer collects between $50-$60 dollars. When an I-Pass, (prepaid electronic toll collection system) was needed because of daily travel on the tollway, my coin collection started to flourish. When I moved to Iowa, I am in a community that has parking meters where I now use many a quarter.

What are you doing with your small change?

 

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

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Sales Tax Holiday: Use Wisely

In Iowa, this coming Friday and Saturday (Aug 3-4 2018) offers a chance to buy qualifying clothing items without paying any sales tax. For most Iowans, (depending on local sales tax), that’s a savings of 7% — not a huge windfall, but still an advantage.  That savings is magnified by the many retailers who offer clothing sales on the same weekend.

Sounds like a winning proposition, right? It can be. But like anything else, it requires consumers to use good judgment! Why?

Well, if you’re like me, you’ve had experience with the risks involved in shopping simply because there’s a sale. Who among us hasn’t made a purchase because it was such a “great deal” and then never (or rarely) used it? Hopefully we learn from those experiences, but it always pays to exercise caution when shopping sales.  Here are some ideas to help us avoid regrets:

  • Have a list and prioritize.
  • Plan a dollar limit that lets you fit your purchases into your budget without borrowing. When purchases are paid off over months of credit card payments, the benefit of the sale price quickly disappears.
  • Know what the “regular” prices are, and consider whether items will be on a bigger sale later in the fall. In other words, ask yourself “Are they just giving a small discount to tempt me to buy now rather than waiting for later when bigger discounts will be offered?”
  • Keep all receipts. If you pick something up and later decide it wasn’t that important or that great of a bargain, you’ll simply be able to return it!  Be sure to have the self-discipline to follow through on that… it may be “only” $10 or $20, but that adds up over time.
  • If you are buying for people other than yourself (especially growing children) check out their current clothing stock before you make your list — find out what fits and what doesn’t. This will help you make sure that the items on your list are the most important items.

Iowa’s Sales Tax Holiday applies to most clothing and footwear items priced below $100. Most accessories are not exempt (such as jewelry or watches), but some items do qualify for the exemption (such as scarves).  Certain specialty clothing items, such as clothing specific to a particular sport, are excluded as well. For a full list of items that are taxable vs. exempt, go to https://tax.iowa.gov/iowas-annual-sales-tax-holiday.

Happy shopping! Good planning means no regrets!

Barb Wollan

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

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Archiving the Past

Many of Iowa’s County Extension Districts are celebrating their 100-year anniversary this year.  Wayne County, where my office is located, is one of them. Starting in January a team of county staff have developed plans for a special day.

Lending a hand with the effort has raised my awareness of  how fortunate you can be when someone at work or in your family takes on the responsibility to preserve history.  Staff at the office have had some fun “aha”  moments sorting through papers, pictures, annual reports, and other archived materials.  It  has also exposed flaws and errors.

Glue, is definitely an enemy to pictures and paper. So is lack of duplication. At one point, the files containing 50 and 75-year histories were misplaced, much to the consternation of a former employee who had invested sweat equity putting them together.

Guidance for doing a better job can be found at the National Archives: 

  • Use a 3-2-1 back-up plan. Make three copies, use two different forms of media, and store one copy off site.
  • Metadata to record includes Who, What, Where, and When.
  • Use picture mounting tabs and plastics that are stable –  polyester, polypropylene or polyethylene.
  • When a very important paper needs restored, find a Conservator.

As landmark celebrations end or you finish family reunions, time improving maintenance of special papers, pictures, and history would be a nice gesture for the future.

Joyce

 

 

 

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

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Meals Delivered

I recently participated in a meal prep event where a dozen women met at a local grocery store to make and take meals ready to cook. We came with empty coolers and each left with coolers filled with 12 meals in Ziploc bags and a copy of the recipe and cooking instructions. Each meal would serve 4 to 6 people. Each of the 12 women would assemble twelve of one meal. When everyone was done dumping all the ingredients for their meal, into a large gallon Ziploc, we walked around the room and grabbed one bag of each meal. Some of the meals were meant to be grilled; others were ready for the crockpot. These meals were healthy with lots of flavor. And…it was a fun social evening for us.

At first, I felt the per-serving cost was a little pricey. But, if you consider all the ingredients AND all the left overs of each ingredient I would have had to store (or toss because I didn’t use them) it wasn’t bad. For example, I paid for only the 1 cup of rice that was needed for the recipe…not the other 3 cups in the bag. The same is true for all the herbs and seasonings.

I recently helped a Veteran who was blind, figure out ways to stretch his budget. We talked about his struggle to shop and cook. He took advantage of the Meals On Wheels for one meal a day during the week; but what about the other meals of the week?

After a little research, I found that in Iowa, there are several businesses that prepare and delivers refrigerated meal. Naomi’s Kitchen, Mom’s Meals and Sisters Entrees are just a few.

A thought did cross my mind…what if I and a dozen of my friends volunteered our time to assemble meals for him. It would be a fun and he would benefit greatly. If we made only crockpot meals, it would make meal prep easy for him…just dump it a crockpot, and put it on high for 2 hours.

What other inexpensive ideas or options do you have access to for easy meal prep for individuals that have physical challenges in the kitchen?

Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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