Beware Work-at-Home Scams

With the national unemployment rate at 8.5% - a level not seen since 1983 - scam artists capitalize on the vulnerability of job-seekers using new and improved work-at-home scams (U.S. News & World Report Apr. 20).

Be on the lookout for some of these more common themes:

• Mystery shopper scams. While legitimate secret shopper services do exist, know the signs of a fraud. First, the scammer sends you a fake check, often thousands of dollars, with instructions to deposit the check in your account. You're then told to use some of it to make purchases during your mystery shopping, deduct a commission, and send some funds back to cover fees. If you do, you'll wind up draining money from your own account. Real mystery shopper employers don't send checks before the work is completed, and you're never asked to wire money back for fees to the employer.
• Advance fee for small business start-up. Con artists convince you to invest a few thousand dollars and promise to provide you with inventory and materials. The materials rarely arrive, and, if they do, they're completely useless and you're left thousands in the hole.
• Pyramid schemes. In these schemes, you're hired as a distributor and you invest in promotional materials and product inventories. They offer you more money for recruiting friends and family as distributors. These are get-rich-quick scams that seem profitable as the pyramid builds, but once it crumbles the only people getting rich are the crooks who crafted it.

To protect yourself from these and other scams, the National Consumers League's Internet Fraud Watch offers these guidelines:

• Know the company you're dealing with and what it is really offering;
• Don't believe promises of easy and big profits;
• Be cautious about any unsolicited e-mail you receive with offers to work at home;
• Get references from others about the business and the work; and
• Be wary of any "advance payment" checks. Most legitimate businesses pay you after you do the work.

Always check with the Better Business Bureau at bbb.org to determine if the business is legitimate. And remember, if an offer seems too good to be true, it probably is.

source - cuna.org

Credit Card Debt Skyrockets for College Students

Credit card debt soared to record levels in 2008 for undergraduate students, now faced with a tough economy and rising college costs.

Young adults accumulated an average of $3,173 in credit card debt attending the nation's colleges and universities in 2008 (usatoday.com April 12). While students may use credit to live beyond their means, a recent study revealed that more than 90% of those carrying plastic charged direct education expenses such as tuition, school supplies, and textbooks (Sallie Mae April 2009).

No matter how credit card debt is accumulated, students are urged to take control of their finances and avoid spiraling further into debt:

• Commit to cash. Adding more debt is counterproductive to paying off your credit cards. Commit to stop using credit cards for purchases and use cash instead. If you can't afford to pay for the item with cash, perhaps you can't afford to buy it.
• Pay off most expensive debt first. Identify which credit card has the highest APR (annual percentage rate) and pay as much as possible above the minimum payment while maintaining regular payments on other credit card balances. This strategy will reduce the total amount of interest paid over time for all your accounts.
• Stay the course. Don't let up as balances and minimum payments begin to shrink. Continue paying as much as you can—more than the minimum payment—for the credit card with the highest APR. Do this and you erase the amount owed on that account faster.
• Knock out small debts. Having several small recurring debt payments can add up to a large amount. Pay off installment debts with low balances to free up money for credit card payments and get out of debt faster.
• Roll over payments. Once you've paid off the card with the highest APR, use the same amount to increase your payments on the card with the next highest APR. Continue this cycle until all of your credit cards have a zero balance.

Home Equity Special!

Struggling under the weight of heavy expenditures, like home improvement projects, medical bills, tuition, or even a family wedding? A home equity loan from LifeWay Credit Union may be just the financial muscle you need.

A home equity loan can give you up to 90% of the equity in your home. Since your house secures the loan, the interest rate is much lower than what you’d pay on a credit card or personal loan.

And the rate is even more competitive at your credit union than other financial institutions. From now until June 30, 2009, you can enjoy an introductory rate of just 3.9% on your home equity line of credit.

Here’s what makes our home equity loan such a smart way to pay off your big expenses:

• The potential for tax-deductible interest (consult a tax adviser)
• Low interest rates
• Personal service to help you match your goals with your budget

Why look elsewhere for a home equity loan when your credit union membership can get you the money you need, for less? Call us today at 615-251-2089 and exercise your right as a member to lower borrowing rates. Your credit union membership could be the beginning of a whole new you.

If you get an email from the IRS.....

If you receive an unsolicited e-mail claiming to be from the IRS (Internal Revenue Service), don't open it. Instead, forward the original message to phishing@irs.gov. How? Create a new message and then drag and drop the original message into the body of the new message. For specific instructions for your e-mail provider (MS Outlook, Outlook Express, Mulberry, and so on), go to irs.gov and type "report phishing" in the search box.

Tax Tip - E-file Your Request for an Extension

If you need more time to complete your tax return, send your extension request electronically by April 15, which will give you until Oct. 15 to file the return, says the Internal Revenue Service (IRS) (April 7).

This year, there are no income restrictions for filing your taxes electronically at no cost from your home computer. Use FreeFile or FreeFile Fillable Forms accessible on the IRS website. And both options allow you to e-file a safe, secure and convenient request for an extension to file.

Don't confuse an extension to file with an extension to pay any taxes due. If you owe money to Uncle Sam, you must pay the IRS by the April 15 deadline or you'll be charged penalties and interest.

The IRS estimates that almost 10 million filers will request an extension this year, and 1.9 million of those will be filed electronically. As of April 3, the average refund totaled $2,705, up from $2,436 for the same time period in tax year 2008.

To file an extension, use IRS form 4868, Automatic Extension of Time to File.

All-Electric Cars Ready to Take the Road

Looking for some good economic news? Affordable all-electric cars are being developed for distribution in the U.S. faster than you can say "green energy" (Associated Press via Washington Post March 30).

Two family-friendly all-electric cars lead the pack:

• Proton, Malaysia's national carmaker, is targeting the U.S. and Europe to release an affordable, practical sedan in 2009. Two models are priced between $23,000 (range of 150 miles) and $33,000 (range of 200 miles) (Fast Company March 30).
• Th!nk North America has plans to build cars in the U.S. by 2010. Th!nk City has a range of about 110 miles and will be priced less than $25,000. This car will be suitable only for city driving, but sedans are on the way (Gas 2.0 March 16).

The government, manufacturers, and many financial institutions are helping to make all-electric car prices even more attractive with:

• State and federal rebates. Look for individual state government rebates of about $1,000, and federal government rebates for all-electric cars of up to $7,500. But choose your model carefully--the rebate depends on how many of any particular model were sold in the previous year (HybridMile Feb. 5).
• State sales tax deduction. The sales tax for any new car, truck, motor home, or motorcycle purchased between Feb. 16, 2009, and Jan. 1, 2010, can be deducted on your 2009 taxes (The Consumerist March 30).
• Manufacturer and dealer rebates. Manufacturers and dealers are offering incentives and rebates to stimulate sales (Contra Costa Times March 23).
• Competitive financing. Cooperative Center FCU in Berkeley, Calif., is financing 100% of the purchase price of electric cars with fixed interest rates as low as 5%.

When you look at the cost of the car, remember the fuel savings. If gas climbs back to $4 a gallon in the coming years, you could save $15,000 over the life of the car. And that's after taking into consideration the cost to keep the battery charged (Associated Press via The Columbus Dispatch March 29).

source - cuna.org

Credit Union Philosophy

In 1935, when credit unions were helping Americans through the Great Depression, the treasurer of a Midwestern credit union said that credit unions were "not for profit, not for charity, but for service," and that philosophy holds true today.

Credit unions continue to look out for their members’ interests and provide a level of service that is not generally available at other financial institutions. Whether it’s providing a loan to help a member cover unexpected medical bills, giving financial counseling to a member whose company closed its doors, or simply offering a better deal on a used car loan, credit unions make a difference for their members and the communities they serve.

The CUNA Cooperative Alliances Committee has developed seven cooperative principles that reflect this commitment to serving members and their communities. These principles were inspired by the Rochdale Principles, which were named after the first successful co-op, founded in Rochdale England in the 1840s.

Seven Cooperative Principles for Credit Unions

1. Voluntary Membership
Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination.

Many cooperatives, such as credit unions, operate as not-for-profit institutions with volunteer board of directors. In the case of credit unions, members are drawn from defined fields of membership.

2. Democratic Member Control
Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.

3. Members’ Economic Participation
Members are the owners. As such they contribute to, and democratically control, the capital of the cooperative. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested.

For credit unions, which typically offer better rates, fees and service than for-profit financial institutions, members recognize benefits in proportion to the extent of their financial transactions and general usage.

4. Autonomy and Independence
Cooperatives are autonomous, self-help organizations controlled by their members. If the cooperative enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the member and maintains the cooperative autonomy.

5. Education, Training and Information
Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative.

Credit unions place particular importance on educational opportunities for their volunteer directors, and financial education for their members and the public, especially the nation’s youth. Credit unions also recognize the importance of ensuring the general public and policy makers are informed about the nature, structure and benefits of cooperatives.

6. Cooperation Among Cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national, and international structures.

7. Concern for Community
While focusing on member needs, cooperatives work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members.

These seven principles are founded in the philosophy of cooperation and its central values of equality, equity and mutual self-help. They express, around the world, the principles of human development and the brotherhood of man through people working together to achieve a better life for themselves and their community.

source - cuna.org