Online Shopping

I received this information from our credit bureau partner Equifax and thought I would share.
Thanks
Cory

Defensive Holiday Shopping

If you've ever seen a shopping centre parking lot after November 15th, it will come as no surprise that more and more people are avoiding the hysteria of malls during the holiday season. Online shopping is increasing in big numbers, with 55 per cent of Canadians planning to purchase most of their gifts through a computer, smartphone or tablet.

With the ease and convenience of never having to stand in line behind a coupon-clipper again comes the risk of your identity being kidnapped and your holidays not being happy. But for every risk there is a shield. Make sure you're equipped with the right armour so that shopping online doesn't become a bigger chore than finding a seat in the food court.

Shield your connection

Before even typing in the URL of a retailer's site, check your surroundings; are you using public Wi-Fi? You could already be at risk, so first things first: turn on your firewall. Gone are the days when you had to be a hacker genius to figure out how to infiltrate a Wi-Fi connection. Rookie hackers can now easily install a plug-in to their web browser and steal private information, such as credit card numbers and date of birth, being transmitted to unsecured websites.

A good rule of thumb is to always check for the padlock symbol beside the URL field and to make sure the URL begins with https, not http. The 's' is the difference between your private information being encrypted or not. If you find yourself in a position where you need to buy ASAP and are willing to take the risk, then your best bet is to use a credit card and not your debit. Should you notice something unusual about the transaction afterwards, you can always put a stop-payment on credit and you won't be out of the cash when you may need it the most.

Practice smart shopping on your smartphone

Smartphones are a new target for fraudsters looking to lift your identity and your money. From phony apps designed to steal your financial information to QR codes that install malware onto your mobile device, thieves have become more sophisticated and creative in their methods. Because so many of these features are new to us, it's much harder to recognize an illegitimate app than it is to know not to send your banking information to the foreign prince who just inherited millions of dollars that he wants to share with you. Here are some tips if you're keen on doing some shopping on your smartphone or tablet this year:

$	Only download apps from trusted retailers. A recent scam called "toll fraud" guises itself as an app from a familiar retailer, but once downloaded, will start sending chargeable text messages from your phone. It's best to download apps directly from their website and not from links containing the retailer's name. Fraudsters can easily make a URL read whatever they want to direct you to a malicious site
$	Try to avoid clicking social media links to special offers and discounts. Anyone can create a Facebook or Twitter account. Better to check the retailer's own site and see if they're offering the same promotion.
$	Before scanning any QR codes promising a great bargain or an interesting newsletter, download a reader that will first let you see the URL you'll be directed to. Recent QR code scams attack mobile phones by stealing the private information they contain.
$	Watch out for emails from familiar retailers asking you to "confirm your purchase" by clicking links or opening attachments. If you have made a purchase from that particular retailer and are unsure about the email, call their customer service line to get a confirmation.
$	Use common sense. If you receive an email or Facebook post promoting iPads for half the regular price, think twice about it. During the holidays, it doesn't make sense to reduce 'hot' items by such a large percentage when people will buy them at full price anyway. When in doubt, leave the link alone!

$	Only download apps from trusted retailers. A recent scam called "toll fraud" guises itself as an app from a familiar retailer, but once downloaded, will start sending chargeable text messages from your phone. It's best to download apps directly from their website and not from links containing the retailer's name. Fraudsters can easily make a URL read whatever they want to direct you to a malicious site
$	Try to avoid clicking social media links to special offers and discounts. Anyone can create a Facebook or Twitter account. Better to check the retailer's own site and see if they're offering the same promotion.
$	Before scanning any QR codes promising a great bargain or an interesting newsletter, download a reader that will first let you see the URL you'll be directed to. Recent QR code scams attack mobile phones by stealing the private information they contain.
$	Watch out for emails from familiar retailers asking you to "confirm your purchase" by clicking links or opening attachments. If you have made a purchase from that particular retailer and are unsure about the email, call their customer service line to get a confirmation.
$	Use common sense. If you receive an email or Facebook post promoting iPads for half the regular price, think twice about it. During the holidays, it doesn't make sense to reduce 'hot' items by such a large percentage when people will buy them at full price anyway. When in doubt, leave the link alone!

There are some things you should be doing regularly, regardless of the season, to make sure your information is still yours.

	Check your accounts frequently; don't wait for bank statements. You're more likely to find irregularities sifting through a week's worth of transactions rather than a month's worth.
	Change your passwords often and make them complicated. Most websites have upped their password criteria to include numbers and capital letters and this is a practice you should adopt when creating passwords for anything.
	Get a copy of your credit report annually. You should be familiar with every detail in the report. If you're not, call the credit-granting institution and the credit report provider to correct any faulty information. If the activity winds up being fraudulent, there are options for monitoring your file that will safeguard you against future attempts at identity theft.

The bottom line is to be very protective of your information, especially now that you don't know who is behind the desk asking for your credentials. All that a thief needs to inhabit your identity is your name and date of birth; very little to do significant damage. With a high guard and a watchful eye, you can still get great (safe) deals to give great gifts.

Festivals and Fun

The warm air of summer also brings the introduction of local festivals. We are very fortunate on the southwest corner of Newfoundland and Labrador to have numerous festivals take place in our back yards. Each festival is a little different but the main thrust is to encourage residents to network with other residents of their communities in a great social setting. Commencing July 27-29^th, one of the longest running festivals of the Province is taking place in the beautiful Codroy Valley. In 1982, the Codroy Valley Lions Club wanted to create an opportunity to collectively showcase these musical wares and the concept of a folk festival was introduced. This newly created Codroy Valley Folk Festival was to serve a threefold purpose: 1) offer a location for local musicians to publicly display their many talents; 2) provide a social event, or gathering place, for local residents and visitors; and 3) be a source of funding for local organizational activities. The Lions Club was successful in forging a partnership with the Codroy Valley Fiddlers' Association and the Codroy Valley Recreation Association in this major undertaking. Many of the youth who have performed down through the years have pursued a musical career as adults. Today, a partnership between the Knights of Columbus, Fiddlers' Association, St. Ann's Guild and the community at large ensures that the tradition continues. While the festival has dabbled with outside entertainment for a brief time in its history, it now remains true to its roots in showcasing local entertainment. 

I would strongly encourage everyone to take in this wonderful opportunity to witness this great family event at the

 Recreation Complex, Upper Ferry, Codroy Valley, Route 406 from July 27-29^th!

This Years Festival is a tribute to Jerome Downey



Sherman Downey, a long time participant in the festival and now international musician

 for more pictures visit http://www.thegeorgian.ca/Slideshow/1990/Codroy-Valley-Folk-Festival-2009/9

It's the Spending Season

It is that time of year when we experience more sunlight, warmer days, and a bounce in our step. Summer also brings about the hustle and bustle of activities that winter prevents us from completing. We come out of hibernation to eagerly commence renovations, gardening, and summer fun. These activities come at a cost, of course, so it is important to consider ways to finance activities to ensure that savings are a plenty.

The new season uncovers work around the home that needs attention and, in many cases, people have not budgeted for these expenses. Given that credit cards are a popular choice to access credit, it is only natural that many people utilize credit cards to fund renovations. The reality of this decision is that most credit cards carry interest rates from 9-19%. It is convenient, however it is not the most cost effective purchase method. The first consideration is what will be the total cost of renovations. If the costs are going to be excessive, consider using a loan or line of credit where the interest rate is lower and the payment can be set. A fixed payment will assist in ensuring that the loan obligation will be paid over a set period in time. Placing a large purchase on a credit card while making a minimum monthly payment will see the expense stretch into the long term, and you will pay an exceptional amount of interest.

An example:  Assume you place $6000 of home repairs on your credit card at an interest rate of 19%. You are only responsible to pay $100 a month.  It would take you 20 years to pay it off and in total you would repay $24,000 of which $17,829 would be interest. Take a loan out for the same amount at 7%, and you would pay the debt off in 5 years by paying $122 a month. Now imagine you are carrying credit card debt. Consider the example outlined and the amount of interest charges you are paying. A loan to consolidate that debt would be wise.

Recreational vehicles and automobiles are popular purchases when the spring-time weather arrives as well. Consumers have lots of financing choices when purchasing these vehicles and the understanding of the credit terms can be quite confusing. When purchasing one of these items, always ask for a quote broken down so you can see exactly what you are being charged. Dealers will offer financing normally through their affiliated company, i.e. Ford through Ford credit. The advantage of taking such financing is that it’s quick and convenient for the customer. The downside is it allows little room for dealer incentives which means it is more difficult to negotiate a deal. Providing your own financing through your credit union will allow you some opportunity to negotiate a better price. The major thing to consider when considering financing a vehicle is the term. Most dealerships are offering up to 9 Years to pay off a vehicle which although makes a low payment, the potential need for another vehicle after 9 years is great. Also, the warranty normally expires after 3 years so you may end up making a car payment and paying for maintenance.

If you are considering a vacation and find yourself short on funds, consider a short term loan and a savings plan. The short term loan could assist you in paying for your current vacation and a monthly savings plan could prepare you for the following year. Every October I start a bi-weekly savings plan to commence saving for Christmas for the following year. The pressure of going in debt for Christmas is removed and I can take comfort in knowing that this expense is covered. I did the same for an annual vacation fund, with automatic withdrawals from my account on payday. The funds are only accessible twice a year and not available for transactions online which removes any incentive to access the funds. I have been doing this for three years now and would highly recommend this to everyone.

We live in a world where everyone wants things yesterday. We have little tolerance for waiting to make a purchase since waiting means planning, and planning means saving. I remember speaking to a lady one time who told me that she drove her old car until the floor rusted out of it and she could see the pavement as she drove up the highway. The reason for this action was she was saving for a new car; and she paid cash for it. Today our kids have little knowledge of saving to make a purchase as they witness their parents buying things with little hesitation continuously. I placed a water jug in my house and everyday when I come home I place my loose change in the jug. I advised my kids that this is our vacation jug, and by putting our loose change in there we can save for a vacation. When it came time for counting and rolling, although painful, they were on-side trying to get to our final tally. It was a valuable lesson as they too held onto their change for their spending money.  We will celebrate this lesson in saving this month on our family vacation. We have a wonderful youth savings account at Leading Edge Credit Union, so consider starting one for your child and encourage them to learn the value in savings. Next blog will be on those considering mortgages!!