Protect You Identity from Hackers

Recently, one of the largest Internet hacking schemes was uncovered. Overseas hackers were found to have stolen 1.2 billion Internet usernames and passwords. This means that, unless you change your usernames and passwords, the hackers can sign into your e-mail or social media accounts and send spam from your e-mail address. Hackers might even pose as your e-mail contacts and send spams to you. To protect yourself from hackers, change your usernames and passwords for your e-mail and Internet accounts. Avoid any strange or out-of-place messages that you receive from your online contacts. Do not be swayed by advertisements or be tempted by spam.

Such incidents of hacking remind us to always be on our guard and protect our personal and financial information. To avoid falling prey to hackers, do not use the same password for more than one account. If your online account providers give the option, elect for a two-step authentication log requiring two passwords. Change your passwords regularly to frustrate persistent hacking attempts. Finally, be sure to monitor your credit report regularly. If a hacker is able to steal enough of your information to open an account in your name, regular credit checks will help you find and correct the problem as quickly as possible.

READERS, what do you think?

Does widespread hacking make you want to be more careful online? In what ways?

Have you been a victim of hacking? What did you do the fix the problem?

Reference:

O’Toole, J., & Pagliery, J. (2014, August 6). Russian Criminals Steal 1.2 billion Passwords. CNN Money. Retrieved from http://money.cnn.com/2014/08/05/technology/security/russian-hackers-theft/index.html?hpt=hp_t1.

More Students are Borrowing Less for Education and Training Beyond High School

A recent survey by Sallie Mae and research firm Ipsos found that more students are making shrewd borrowing decisions for their education. This year, the amount of money borrowed for college dropped to its lowest level in several years. More parents and students are opting to pay for college using their savings rather than with loans. By avoiding student loans, families are able to save themselves thousands of dollars in interest in the long-run.

Avoiding student loan debt is not easy, as the cost of attending college continues to rise. Surveys have shown that students are managing the growing cost of higher education by going to less expensive colleges. In the past four years, the number of students attending two-year community and junior colleges has gone up by 11 percent, while the number of students entering four-year universities has decreased by 11 percent.

Community and junior colleges are a great money-saving option for families, as they charge less for tuition. While the average four-year private college costs over $34,000 a year, a two-year public institution costs about $11,000 per year on average. Two-year public colleges are usually located close to home, and offer transferrable credits for those who want to move on to a four-year degree. You do need to make sure the credits you get at a two-year institution will count when transferring to your particular four-year institution, as they might not. Doing the research beforehand will help prevent wasted credits (and money).

School choice is not the only way students have been cutting their dependence on loans. Students and their families have also worked to reduce the living expenses that usually contribute to debt. Rather than living in pricey dorms, more students are choosing institutions that allow them to live at home. Other students are working while in school in order to contribute more money toward their education.

Students entering college should take advantage of this trend and explore ways they can limit their dependence on student loans. When researching potential colleges, pay close attention to the yearly costs, and do not neglect to inquire about the community colleges in your area. In order to save on living expenses, consider schools that will allow you to live at home. If you do choose a four-year institution, consider one that will not charge you out-of-state-tuition. These cost-cutting decisions will save you a great deal of money over time.

READERS, what do you think?

Would you be willing to go to a community college if it meant avoiding student loan debt? Why or why not?

Reference:

Hicken, M. (2014, August 1). How Americans Are Paying for College. CNN Money. Retrieved from http://money.cnn.com/2014/07/31/pf/college/paying-for-college/index.html?iid=SF_PF_River.

The Consumer Financial Protection Bureau

Have you had problems with prepaid cards, gift cards, and/or general purpose reloadable cards? As young people become more involved in the financial world, these cards are one source of confusion that they will encounter. So who can you turn to when you have a problem like this?

The Consumer Financial Protection Bureau provides consumers a new place to go if they have a complaint about any of these types of financial products or services. You may post your complaint on their Web site and receive a response on the site itself. This helps eliminate the problem of businesses hiding complaints in a file where the public can’t see them. (To protect your privacy, your personal information will not appear on the Web site.)

The CFPB is an agency of the U.S. government. It has a mission “to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

Consumers can also now submit complaints about additional nonbank products, including credit repair services, pawn shops and payday loans. They even provide help in deciding how best to pay for college!

READERS, what do you think?

How could financial products and services be made easier for consumers to understand?

Would you be more comfortable getting a credit or debit card if the rules were spelled out in easy-to-understand language, rather than language that only a lawyer can understand?

Reference:

Consumer Financial Protection Bureau. (n.d.). [Home page]. http://www.consumerfinance.gov/.