Using Social Networking Sites Wisely—It’s a Matter of Safety and Privacy for You and Your Children

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October 2007

With the phenomenal success of sites such as MySpace.com and Facebook.com, the numbers and variety of social networking websites are exploding on the Internet. Some, such as MySpace and Facebook, attract millions of varied users and others may be targeted at fewer individuals with very specific interests. All share the objective of allowing “members” to communicate, or “network,” with other members, and all require that users share some information about themselves. Social networking sites can be a great place to meet other people with your interests. They can be a fun place to meet and interact with friends. The many positives of these sites, however, come with some real dangers—if you don’t use them wisely. This report provides tips for safely using social networking sites.

What are Social Networking Sites?

Social networking sites are online communities where people from all over the world can meet and share common interests. There are hundreds of these sites, some more well known or larger than others. Joining a site is usually free; and after you join, you typically set up a personalized profile or provide other information (such as a personal blog) that other members can see. Members then communicate using tools provided by the site — instant messaging, chat rooms, blogs, and email. On many sites members can post pictures and videos. Some sites allow other members to post comments on your profile or blog.

Read more: Using Social Networking Sites Wisely—It’s a Matter of Safety and Privacy for You and Your Children

Check, Credit Card or Debit Card? Choosing a Payment Method for Security and Convenience

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September 2007

How do you pay for everyday purchases or bills? Cash? Check? Credit Card? Debit Card? If you are like most people, you use a combination of these methods—and more. The advent and growth of electronic banking has encouraged many people to move more and more from paper (cash, checks) to plastic (credit cards, debit cards). All these payment methods have roles to play in personal financial management today.

All have their advantages and drawbacks. All can be used securely with proper precautions. All have consumer protections should fraud or theft occur, but those protections may vary depending on what the issuing institution offers you. This report offers a brief overview of the facts you need to make wise choices for your circumstances.

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Why Not Buy a Car on eBay or Another Online Auction Site?

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August 2007

eBay has become the gorilla of vehicle sales virtually overnight—they’ve facilitated over two million vehicle sales since starting their program. What’s not to like about that?

A lot of things. Before you even head to the eBay site to simply poke around, think about this:

• When you buy on eBay, you’re typically buying “sight-unseen.”
• You usually don’t get to drive the vehicle.
• You’re typically buying from total strangers, and they are usually far away.

Read more: Why Not Buy a Car on eBay or Another Online Auction Site?

Payday Loans—Still the Most Expensive Way to Borrow

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July 2007

Countless advertisements on storefronts, on TV, in print media, and over the Internet entice cash-strapped consumers with offers of “cash today” with “no credit check”—just borrow against your next paycheck. Since my 2004 StraightTalk Report on payday loans, the industry has continued to grow dramatically, particularly on the Internet.

Payday lenders hawk their loans as a useful “service” that helps consumers meet short-term, emergency needs for cash at a modest cost. The facts tell a different story. About ninety percent of revenue for payday lenders comes from borrowers who can’t pay off their loans at the end of their two-week term and pay additional fees to extend or “flip” the loan, according to a well-researched report by the Center for Responsible Lending. Annual percentage rates (APR) typically range from 400% to over 1000%. Borrowers of a $300 loan often end up paying back well over $700.

Read more: Payday Loans—Still the Most Expensive Way to Borrow

Thinking about Buying a First Home or Moving Up to a Larger Home?

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Lessons You Can Learn From Today's Housing Market

June 2007

The housing market has been much in the news recently. After years of steadily rising home values, the market has cooled. In many areas, home values have leveled off; and in some areas, home values are actually going down. At the same time, a record number of home foreclosures have been reported to date in 2007. The press is full of news about rising default rates, particularly for “subprime” mortgages.

As some of the heavily marketed “creative” financing products such as Option Adjustable Rate Mortgages (ARMs) “reset,” many homeowners suddenly face higher monthly payments they can no longer afford. The impact appears to be unsettling to the whole market.

If you are thinking about buying a first home or perhaps a larger home to fit your growing family, what can you learn from what’s been happening in the housing and mortgage markets? For savvy consumers, recent events offer many sound lessons that lead to smarter decision-making.

Read more: Thinking about Buying a First Home or Moving Up to a Larger Home?