Increasing Risk of Digital Money Skimming
December 12, 2011
As modern-day technology has advanced, there has been an alarming increase in reports of credit card reader skimmers including ATM, grocery store, retail store and gas station pump credit-card reader skimmers. Technology and ‘know-how’ has advanced sufficiently such that replicating the machines that are used to scan and read credit and debit cards has become fairly simple for the modern day technology thief.
The sophistication of card-reader-skimmers is exemplified in the following report from ‘Krebs-on-Security‘ where a recent skimmer confiscation reveals the mechanism which was ‘printed’ on a 3D resin printer. A mini camera was built in so as to see the ATM user enter their pin number. Blue tooth technology is often used so the thief (who is very near by) can instantly receive the stolen information.
Just a few days ago in the San Francisco area, abc World News reported that thieves who inserted data-skimming devices into card readers at Lucky’s supermarket self-checkout counters ripped off as many as 500 of the California chain’s customers. Data-skimming devices inserted into the readers allowed the crooks to steal information like the shoppers’ PIN numbers, expiration dates and security codes from the cards wirelessly.
I’m sure you’ve heard reports in your own area of similar card reader scams. It seems to me that I’ve been hearing more and more lately…
Why bring this up on a survival preparedness site? Because risk awareness is the first step to ‘be prepared’. Knowing that the convenience of digital money comes with its risks, may prompt some to use cash as much as possible instead. Plus, your purchase habits cannot be tracked with cash, while your debit card (or credit card) leaves a record of everything that you do, and where-and-when you do it (if that’s a concern for you).
On a side note, isn’t it quite crazy when you think about it… that is, we are working our life away for invisible ‘digits’, backed by nothing at all (same goes for the paper money). So long as enough people continue to believe in the value of the nothingness, the system keeps on keepin-on.
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Kill ALL Credit Card Debt
March 7, 2010Credit Debt Is Killing You
I cannot stress enough that having credit card debt is the major obstacle that is keeping you down. Having credit debt has very negative side effects that include stress, hopeless feelings of imprisonment, worry, and relationship issues due to the financial strain. If you have a desire to be liberated and debt free, to be in control, to be more self sufficient, to be prepared, to survive hard times, to living frugal, then the answer is to adopt a new way of life – a new way of thinking that will speed you on your way.
Having been in credit card debt ourselves, we know what this feels like. And we also know the incredible positive feelings that begin when you make up your mind to become debt free and begin the process of eliminating your debt. When you finally reach your debt free goal, having gone through the pain, it is quite easy to never go there again. The emotions that come along with being debt free include happiness, liberation, freedom, empowerment, and the feeling of being in control of your own destiny.
Stop Using Your Credit Cards!
Step one is to stop using your credit cards. Period. Use cash to purchase the things you would have. I must tell you, when you are making a purchase, when using cash it seems very different to hand over the money rather than handing over a credit card. It really makes you think about if you really need to be making that purchase. It really works. If you don’t have the cash, then don’t make the purchase. The credit card trap begins when you buy that thing on credit because you don’t have the funds that week. If you don’t have the funds, don’t make the purchase. Simple.
Pay Off the Highest Interest Rate Card First
Step two is determine which credit card has the highest interest rate and pay the highest amount of money that you can afford each month on that highest rate card. This is not the card with the highest balance, but the one with the highest interest rate. Pay the minimum payment on any other cards that you may have. Something that is very important to know is that any additional amount of money that you pay over and above the minimum required payment, will drastically reduce the amount of time that it will take to pay off the entire balance. Not only will it reduce the time, but it will save you a lot of interest money that goes straight to the bank and the banksters bonuses. I think they’ve screwed you enough, don’t you?
You must seriously work at minimizing your expenses during this period of time while you are paying off your card debt. The more you can scrimp at spending, the faster you will become debt free and liberated. Sacrifice the luxuries for awhile. Examine everything you spend money on, and think about alternatives to those expenses. Are there cheaper alternatives? Can you make do in another way? If you really set your mind to this, it can actually be fun because you are convinced of the end result and you become quite motivated and excited to see the balance coming down. Trust me, when you reach your goal, it will be an amazing feeling that will change your life.
Start Paying the Next Highest Rate Card After Paying Off the Highest Card
Step three is to switch to the next highest interest rate card when you have finished paying off the highest interest rate card. Again, pay the most that you possibly can afford each month and only pay the minimum payment of any remaining credit cards. I found a simple online card calculator where you can plug in your current debt, interest rate, and the monthly payment that you choose, and it will calculate the amount of time to pay it off and the interest that you will have paid. Use it to try different payment scenarios to see the effects.
Now, get motivated and get started. You can do it. Become debt free!
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Reduce Your Expenses
February 15, 2010
Recession Proof Household – Part Two
Wants vs. Needs
Before I talk about the different types of debt and expenses, there is one topic that I must discuss. If you are going to be able to decrease or get rid of your debt completely, you must have a good grasp of this topic. In order to gain financial independence you have to be able to accurately distinguish between a ‘want’ and a ‘need’.
So many people are overwhelmed with debt because they ‘acquired’ numerous ‘wants’ instead of just ‘purchasing’ what they ‘need’. Notice I didn’t say that the ‘wants’ were purchased. I use the word ‘acquired’ to point out a difference. I am referring to the use of credit cards or loans to get things you really don’t need. There are many people I know that are in this situation.
So the first thing you must do is… take a step back and really take an objective look at your spending habits. You need to be completely honest and objective.
Okay, so your car finally died and you needed to get a replacement vehicle. (Notice I used the word ‘replacement’ and not ‘new’). I will say that a car, for most of us, is a ‘need’ and not a ‘want’. But did you really need to saddle yourself with another car loan because you ‘wanted’ to get a new car? Perhaps you should’ve gotten a car that’s four or five years old that runs just as well as the new one, but costs substantially less. Your loan payments would be less or perhaps you might have even been able to pay cash.
Are you one of those people that goes to the coffee shop every morning on your way into work? Do you really ‘need’ the fancy lattes at $4.00 each? Do you realize this adds up to about $20 a week… that’s $80 a month ON COFFEE!!! By the way, that comes out to almost $1,000 per year. Yup, that’s’ right folks, by making this one simple change, you could save $1,000 a year! If I spent 80 dollars on coffee, I would be able to purchase at least 8 pounds of coffee. Perhaps what you should be doing is making some coffee at home and pouring it into a travel mug to take to work with you. Think about how much money you would save by making that one simple change in your spending habits.
Do you find yourself trying to justify a purchase in your mind or to your spouse? If you are trying to justify buying an item, then chances are you are buying a ‘want’ and you don’t ‘need’ to buy that item.
Hopefully this clears up the difference between a ‘want’ and a ‘need’ for you. Step one to saving money is to stop the unnecessary spending. From now on, ask yourself, “Do I want this or do I need this?” Make your decision to buy based on your answer to that question.
Next….Smart Shopping
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