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DON'T LET YOUR CHILDREN FALL INTO THE DEBT TRAP!

You're getting ready to send your child off to college. You've packed her clothes, planned the route you'll take to get there and helped her register for classes. You've also warned her about sex, drugs and alcohol. But, if you haven't had a money talk, your children are not completely prepared.

According to a recent study by Nellie Mae, college students, both undergraduate and graduate, who have student loans owe an average of $18,800 when they finish school. Of that sum, $2,200 is attributable to credit cards.

Don't let your children fall into the debt trap. Instead equip them with wise money management skills. This way, when they receive their diplomas and head off into the real world, they do so free of the burden of credit cards. Here are some tips to teach your child financial skills.

Develop a financial plan. Create financial goals, such as saving for spring break, a computer, or a car - and use those goals to set your spending priorities. Draft a budget in which your expenses stay within your income. If your expenses exceed your income, look for areas where you can cut back. Maybe you don't really neat to eat out or buy that new outfit. Look at your phone bill.

Explain about credit. Kids need to understand that credit cards are not "free" money -when they use them, they're taking out a loan that has to be paid back. Explain about interest charges, grace periods, and introductory rates. Explain what a credit history is and what affect it may have on them. A poor credit history affects your ability to obtain a car loan, mortgage, credit, apartment or employment for years into the future.

For help setting up a budget, reading a credit report or getting out of debt, contact Consumer Credit Counseling Service of Hampton Roads at (757 ) 826-2227. CCCS is a nonprofit organization dedicated to helping people become better money managers.

CCCS OFFERS TIPS FOR A VACATION WITHIN  YOUR BUDGET

Ah, summer...as kids, we could hardly wait for school to let out and vacation to begin.  AS adults, the thought of a July getaway can keep us going through a dismal winter or a tough week of work.

If you're struggling to make ends meet, however, paying for a summer vacation may seem impossible.  Don't give up.  Most consumers can afford some type of escape.  It just takes a bit of careful planning.

The first thing to do is to sit down and realistically determine how much money you can set aside by vacation time.  Saving money in advance allows you to know exactly how much you have to spend.  It also prevents having to face a stack of bills when you return home.

For potential travelers planning vacations, CCCS offers the following advice:

1. Be an armchair traveler.  Planning a trip can be almost as much fun as the actual vacation, because you get to explore the exciting world of possibility.   Travel guides, magazines, friends, the Travel Section of the Sunday newspaper and the internet all offer ideas.  You may also check out the library for books devoted exclusively to budget travel.  Poll the family members to get everyone's input and, as a group, decide on a destination.
   
   

2. Travel within your means.  Once you've decided where you're going, outline a budget.  Account for all expenditures from pet sitting, hotels, gas money, camping fees, food and amusement park tickets.  If the total adds up to more than you can afford, look for ways to trim costs or select and alternate destination or planned events.  To save money, consider sharing expenses with another family or taking a short trip to a nearby location.
   
   

3. Shop carefully and compare prices.  Compare prices for hotels and airlines.  Some discounts are available if you chose your travel time of mid-week v. weekends.  Also remember, if you are a AAA member, many hotels offer discounts.
   
   

4. Decide how to pay.  Evaluate your payment options.  The first step is to save as much money as you can in advance.  For the balance, consider carefully before using loans and credit cards; compare interest rates and terms.  While on vacation, paying with a credit card offers the advantage of easing the reservation process and reducing the need to carry a lot of cash.  However, avoid spur-of-the-moment purchase and write down each credit transaction you make.  Plan to pay off your credit balance within three months

By following these suggestions, budget travelers can have enjoyable and memorable vacations without the heavy burden of increased debt.

QUESTIONS & ANSWERS ON IDENTITY THEFT

What is identity theft?

Identity theft occurs when thieves steal and use personal information such as Social Security numbers, dates of birth, driver's licenses, and addresses to drain bank accounts and to open credit accounts in other people's names.

How does identity theft happen?

Thieves may pose as an employee, loan officer, or a landlord to order a copy of your credit report.  They may steal mail from mailboxes hoping to find newly issued credit cards, bank and credit card statements or pre-approved credit card offers.

How can I prevent identity theft?

To prevent identity theft, remember these simple rules:

1. Don't send account numbers, Social Security numbers, or any other sensitive data over the internet.
   
   

2. Every month review your phone bill (including your cell phone), bank statements, and credit card statements.  Your financial liability is limited if you report any fraudulent use immediately.
   
   

3. Shred unwanted papers containing information about your accounts.
   
   

4. Be careful about disclosing your Social Security number.  Only your employer, bank, and other businesses that are required to report your income to the Internal Revenue Service have legitimate needs for this number.  Remember that your Social Security Number is the key to your credit and banking accounts and is a prime target of criminals

What should I do if I'm a victim of identity theft?

Victims of identity theft need to report the crime immediately to the police.  They also need to report them to the following institutions:

1. The fraud units of the three credit reporting companies:
   -  Experian -      (888) 397-3742
   -  Equifax   -      (888) 525-6285
   -  Trans Union -  (800) 680-7289
   
   

2. Your bank, mortgage company, broker, utilities and other services where you incur financial loss or liability.  Also notify the issuer of your credit cards.  Notify them of the problem and request new replacement cards and account numbers.

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