The latest scam you need to be aware of to prevent identity theft of your information is pretexting.

What is Pretexting?

Scammers are using home and cell pretexting to get personal information from you via the telephone. For intance, someone calls you and makes up a reason that they need some personal info from you. The pretext they use is false and aimed at separating you from your personal information.

Are Their Laws Against Pretexting?

While the FCC and the FTC are hopeful that Congress will criminalize pretexting, their are currently no laws specifically against pretexting. The FTC has pursued a few cases under th “unfair and deceptive practices” mandate. Individual companies, like cell phone companies hurt by cell pretexting, have filed suit in civil court against the pretexters.

How Do I Prevent Identity Theft and Pretexting?

Here are a few tips to prevent identity theft if you are contacted by a pretexter.

• Don’t give out any personal information to anyone unless you’ve initiated the contact. This not only includes by telephone, but also by mail or through web sites.
• Don’t call a number given to you verbally for verification purposes. Frequently, pretexters work in teams. The “verification” number could be their partner in crime.
• Set up an online account with your wireless and home telephone company which is tied to a password. Just like online, be sure to choose a password that can’t be guessed and is a combination of letters and numbers. My daughter works in the call center of a cellular company and they won’t give out any personal information without the phone number and password.

If you think your identity has been compromised through pretexting, call your telephone company immediately. You can notify the FCC by filing a complaint or calling them at 888–225–5322.

It seems like preventing identity theft is a full time job, but by following some simple guidelines like NEVER giving out your personal information, you may be able to protect yourself for scams like pretexting.

I was listening to talk radio in the car the other day and the were talking about the poverty rate in the United State and what that really meant.

Apparently, a politico was making a speech about the number of people who went to bed hungry. The call morphed into a discussion of the redefinition of the poverty rate in the United State s and how many baby boomers would be considered as part of that poverty rate nowadays.

Here are the 2006 Poverty Level (or guidelines - established by Health and Human Service Department):

That got me to thinking that, based on our standard of living when I was growing up, I could have been considered a poverty kid.

For instance, when I was young our house had:

• No air conditioning;
• One bathroom;
• No garage
• One television
• Two bedrooms
• Our pool was one that was set up in the backyard during the summer.
• The house was probably around 1000 square feet and my parents paid $26,000 for it.

We had one car. If my mom needed to go anywhere, we rode the street car. I can't remember anyone in our neighborhood who had two cars.

In the 1950's, the average house size was 1,100 square feet and the average family consisted of 4.2 people. In 2005, the average new house increased to 2,434 sq. ft. while the average family size decreased to 3.1 people.  And that doesn't include all the STUFF we STUFF our houses with!

Is it any wonder that debt is such a horrendous part of so many lives?

How many things do you consider necessities (like cable tv, DSL, cell phones) that are not? If you have the money, then go ahead and enjoy it. But if you are struggling to pay the bills, challenge yourself to find at least one thing that is a luxury and can be given up.  (For instance, if you just can't stomach cancelling your cable altogether, at least downgrade to the basic service. That will save you $600 or more a year!)

If you find yourself still paying off Santa's bills in March, drop by this article from The News Herald and pick up six quick tips to avoid Christma debt.

The only tip I don't agree with is that you shouldn't charge your Christmas purchases on your credit card if you can't pay five percent of it every month for the next 20-24 months.

Excuse me?

If it takes you two years to pay off your Christmas gifts, what the heck are you going to do next year? Charge more that it will take two years to pay off?

Other than this delusional tip, I recommend taking a few minutes to read this article. Good stuff!

Seems that the U.S. Government is still charging us to pay off debts incurred in the Spanish American War from 1898.

Bet you don't feel so bad now, huh?

This article will show you how to apply for a rebate for these taxes.  There are two ways to go: (1) The lazy way for a maximum of $60 with more than three dependants or (2) The actual fees you've paid over a period of time, which could result is as much as a $300 rebate. 

With housing prices going through the roof in the last few years, many people began considering riskier loans. At the time, nobody thought these were riskier because home values were going up faster than a hot air balloon.

But those days are gone for now. Home values in many areas of the country are dropping…not rising. And more than a million families have lost their homes this year due to foreclosure.

The two groups hardest hit are at different ends of the spectrum. The largest category is who took out subprime loans. Subprime loans are made available for those whose credit history is below average or for those who are outside the normal income/expense ratios.

Secondarily are those that just aren't satisfied. (A cousin of mine is a textbook example!) You know those people.  They gobbled up those Interest Only Mortgages so they could buy a McMansion that was way too big….but would impress the heck out of their family and friends. The thing many people who bought McMansions didn't realize is that large utility bills, property taxes and insurance bills go hand-in-hand with those humongous houses.

Now the rates are skyrocketing. These homes can't be sold because you owe more than you paid (and if your mortgage includes negative amortization, you owe WAY more than you paid!). So people are walking away in droves.

The three biggest states for foreclosures right now are Colorado, Nevado and Georgia, followed by my state, Florida. In fact, in Georgia, foreclosures are up by 100% over last year.  And those figures are likely to grow in 2007 because $1.2 trillion dollars in mortgages are up for adjustment next year. 

Years ago, people started small and traded up until they could afford their dream home. If you can't afford convention loan payments, how do you think you'll be able to pay ever-growing payments with an adjustable mortgage?

Debt Free.  Sounds nice, huh?

As nice as having financial freedom might sound, it you read the paper or listen to television, you know that few people have attained a debt free lifestyle.

In a  random study I recently conducted, I was shocked to find that more than 80% of the people I spoke to did not think they would ever be debt free.  To them, financial freedom meant nothing more than paying off their credit cards.  But, in their minds, they accepted the fact that they would probably be making car and mortgage payments for the rest of their lives.

Doesn't sound very "free" to me!

My family has been on the path to debt free living since 2001. As time goes on, I'll share some personal stories of our struggles - and triumphs.  My guess is that you may see yourself and your family in my stories.

Can you truly achieve debt free living? Yes! Gone are all of our credit card bills, two car payments, an RV payment and all outstanding debt except for a mortgage on our home, plus fully funding college for two children.  And during that period of time, my husband was out of work for almost a year, we moved across country, and had one child in college. 

So, sign up for the RSS feed, feel free to comment and come along for the ride. I'm thrilled you're here!