A Remedy for Identity Theft

Over 16 million people were victims of identity theft in 2017 including credit card and debit card holders.  One way to protect yourself from identity theft is to purchase a prepaid credit card or prepaid debit card. I am very careful about 1) where I use my credit card and debit card, 2) online shopping and 3) general protection of my personal information.  Unfortunately I still became a victim of identity theft due to a Netflix scam that charged my debit card $7.99 for a movie I never purchased. 

I didn’t notice the unauthorized transaction until I received my bank statement because I hadn’t used the debt card in over 3 months. I immediately had the account closed. This further reinforces my decision to pay for everything with cash.  However, some merchants prefer customers pay with a credit card so in those instance I have to pay with my credit card. There are several benefits of using a prepaid credit card or debit card. 

The benefits of using a prepaid credit card are:

1. Load cash online, from another card, direct deposit, online or at a retail location.
2. Zero liability.
3. Accepted everywhere.
4. No maintenance fees. 
5. Helps manage your money.
6. No interest rates.
7. Can be used at ATMs.
8. Prevents going into debt.
9. Can make purchases online.

The benefits of using a prepaid debit card are:

1. Load cash online, from another card, direct deposit, online or at a retail location.
2. Accepted everywhere.
3. Zero liability.
4. No maintenance fees.
5. Helps manage your money.
6. Can’t go over the limit.
7. Can be used at ATMs.
8. Can make purchases online.
9. No late fees.

Are Prepaid Cards A Good Option

Prepaid cards are reloadable and can be used for purchases at businesses that accept credit cards and can sometimes be used for ATM withdrawals. A prepaid card should be used in addition to having a traditional bank account but should not solely for money transactions.  

There are many advantages to using prepaid cards but there are also many disadvantages.  Prepaid cards work similar to debit cards for making payments or purchasing items.

Prepaid cards are helpful for those who cannot get a credit card or open a bank account due to bad credit. Some consumers have been scammed by companies regarding prepaid cards.  

Over 100,000 consumers who paid for payday loans online were tricked into paying for prepaid cards instead.  Consumers signed up for payday loans but were tricked into signing up for prepaid cards with a zero balance.  

Pros

1. Reloadable
2. Used at businesses that accept credit cards
3. No credit check
4. No minimum balance and free direct deposit
5. Easier than obtaining a credit card
6. Returning goods or canceling services treated the same as cash
7. May get perks such cash back rebates or airline miles
8. Must be 18
9. May help control spending

Cons

1. Fees - activation fees, monthly fees, hidden fees
2. Less protection against loss or theft
3. Payment history not reported on your credit reports
4. Do not adhere to the same security guidelines as traditional credit cards
5. If the bank goes bankrupt your money on the prepaid card may be lost forever
6. Unable to exceed the spending limit if needed
7. No protection against theft, identity theft and scams
8. Some banks may assess overdraft fees even if the card is stolen
9. Not regulated by same laws as standard debit or credit cards. 

9 Fabulous Ways to Locate Your Student Loans

Americans owe over $1.48 trillion in student loan debt, spread out among about 44 million borrowers. Average monthly student loan payment (for borrower aged 20 to 30 years): $351. Owing student loan debt can reduce opportunities available to apply for credit for loans, autos, homes and employment.

Some student loan borrowers have to delay large purchases such as an auto or home due to large outstanding student loan balances. Student loan debt can impact your personal budget, decrease money available for necessities, contribute to a savings account and plan for retirement. 

Student loan debt may prevent you from getting advanced degrees, moving out on your own, lower your credit score, lower your net worth, and be at risk for a tax refund garnishment. The first step to paying off student loan debt is locating your student loans. Here are x easy ways to locate your student loans.

LOCATE STUDENT LOANS

1. Search the National Student Loan Data System (NSLDS) nslds.gov for federal student loans.
2. Contact your college’s financial aid office to get the lender’s contact information.
3. Order a copy or your credit report. Federal and private loans are listed on the major credit reports: Equifax, Experian and TransUnion.
4. Search Google for the lender’s contact information.
5. Go to www.ed.gov and click on Student Loans then click on the Contact Your Loan Servicer link to view a list of federal student loan lenders.
6. If your Federal Perkins Loan has been assigned to the Department of Education, contact the Federal Perkins Loan Servicer at 866-313-3797.
7. If you have private student loans, contact the lender to learn about repayment options.
8. Call the Department of Education’s Federal Student Aid Information Center at 800-433-3243. For defaulted federal student loans, call the Department of Education’s Default Resolution Group at 800-621-3115.
9. Contact the Department of Education student loan ombudsman office at 877-557-2575.