Monthly Archives: October 2017

Losing a wallet is a crushing experience

Your wallet contains a plethora of information about you, from your cards and license, to your cash. Losing it means losing all that it contained, and that puts you in grave danger, because you run the risk of identity theft. You need to be aware what needs to be done in such a case to protect yourself from things like credit car fraud, identity theft, etc. Once you get over the initial shock of losing a wallet, it’s time to think clearly. Do not panic (easier said than done, I agree). Think of ways to amend the situation. Here’s how.

Dealing with the Loss of Your Wallet
Once you are sure the wallet is not on you, hunt for it. Try to remember where you last used it, where you were when you last used it, what did you use it for, etc. Rake your brains and see if you recall where you put it back once you finished using it. Then look for it again in those places.
If you are sure you have lost it, call the place you last visited with your wallet. Most public places like shopping malls have a lost-and-found center, so chances are if they have come across the wallet, it might have been deposited at some such center. You will need to identify yourself on the phone with some sort of ID.
If you own a debit card, call your bank and report the loss immediately. A debit card in the hands of strangers is an extremely risky proposition. You must report the loss within two business days, this ensures that you will not be charged anything more than $50 for unauthorized use. If you delay it further, the liability goes up to $500. Contact the bank’s fraud department and report that the debit card has been stolen/lost.
Call the credit card company without further delay to minimize the chances of credit card fraud. Cancel all credit cards. The maximum liability you will face is $50, even if the card is used before you have even reported that it’s stolen or missing. Bear in mind though, if you have an outstanding balance on your credit card, canceling it is not a very good idea, as it can hamper your credit score. In such a case, specifically inform the credit card company that the card is lost. Most card companies have rules and regulations in place to deal with such a scenario. You can instead request for a new account number.

The gold standard has been one of the most important monetary

During the current recession, different theories have been put forward to suggest the decline of the US economy. Some researchers attributed abandoning of the gold standard as one of the factors for economic instability. Since then, a lot of people want to know what this stands for. Although it is no longer in use today, the influence that it had on the world economy cannot be neglected. It is a system in which the monetary unit of a country is expressed as a fixed weight of gold. There was an agreement by several countries that they would value their currencies in such a way that it could buy the exact amount of gold that they held. For example, if a country had X units of gold reserves, then it could mint only a specific amount of currency equivalent to the value of those units. The Gold Standard Act was passed in 1900 and it established the metal as a monetary exchange all over the world. Richard Nixon ended the convertibility of currency into gold some 40 years ago, and today the measure is known as the ‘Nixon Shock’. A lot of thinkers, to this date, are critical of this decision and question his legal right to end this system. Today, most of the economies work on the floating exchange system.

History

Since the historic times, gold was always looked upon as a precious metal and people were well aware of its properties. It was used as a form of currency by various civilizations, but with time, some changes were made to the way it was exchanged.
Gold Specie Standard: This monetary system is one of the oldest in the world. It was based on the actual gold coins of different denominations. In the US, it was adopted in 1873, with the American Gold Eagle as its unit. Gold coins were available in various denominations namely USD 50, USD 25, USD 10, and USD 5.
Gold Exchange Standard: In this type of monetary system, the currency used was not made up of gold, but it had a value equivalent to that of the metal. It was widely used in the late 19th century, and continued till the beginning of the 20th century. In this system, coins made of silver and other metals were used in circulation, but the government guaranteed an exchange rate that was equivalent to the value of gold coins.
Gold Bullion Standard: This was the final standard that was used before the gold standard was completely abandoned. In this system, the government started selling gold bullion on demand at a fixed price. International trade caused a lot of bullion to be shipped out of countries like Britain, France, etc., and this standard was also abandoned by the 1930s.

Effectively Manage Multiple Credit Cards

Managing multiple credit cards is not meant for the fainthearted, nor is it the safest option for the spendthrift. However, for those who are well-versed with the art of saving and monitored spending, availing more than one credit card can be a cost-effective option. There is a common misconception propagated by some financial analysts and consumers, that using more than one credit card can spell trouble, and must be canceled once and for all.

However, very few will tell you that using your credit cards wisely can help increase your credit score and creditworthiness. Of course, if the cards are used unwisely, it would be merely a matter of time before consumers find themselves in some serious debt. This Buzzle article discusses how to effectively manage multiple credit cards.
How to Manage Multiple Credit Cards
Credit experts advice consumers to always opt for a zero balance credit card, which they must keep locked away in a locker or someplace, where they won’t feel the need to use it at all. This way, the card can be used in case of dire emergencies, such as when an existing credit card is stolen, lost, or breaks. In such situations, the zero balance card can be used as a backup, while the previous card is replaced.

The advantage of owning more than one credit card is, that each of the cards can be used for a specific purpose, or alternately. While one card can be used for incurring daily expenses, the other can be used for big expenses or paying for emergencies.

Most cards offer reward points for certain specific commodities and services, and therefore should be used accordingly. For instance, one credit card may offer more reward points for fuel or booking tickets, and thus, must not be used for groceries or cash-back services. Having multiple cards will offer many types of reward points, which can help minimize expenses to a large extent.
Consumers can avail credit cards with lower interest rates, so that they are able to save on their interest fees and increase their savings every month. Going for cards that offer minimal or 0% introductory rate for purchase and balance transfers for a fixed period of time, can not only help consumers save but also monitor their expenses. Secondly, knowing that a low interest rate exists can be a source of great comfort for those who are unable to pay off the bills for a month or two.

Credit card problems when you are traveling out of the country.

Tips to Avoid Credit Card Problems Abroad

The majority of the credit card problems that you might encounter in a foreign land are due to the lack of preparation before the journey. Here are a few things that you should do to avoid credit card problems:

Inform Your Bank
The frequency of the financial transactions done abroad might make your bank suspect a fraud. There are 2 reasons for the suspicion.
The transactions are not confined to your city.
The frequency of your credit usage is abnormal.
So, if you inform your bank, they will probably make a note of your travel, and this may help them understand that the unnatural usage of credit card is due to your traveling. If you have cards from multiple financial institutions, do inform all of them, else you might have to face automatic deactivation.

Check the Limit
Most of you might have heard of instances where tourists were arrested, as their transactions exceeded the credit card limit, in majority of these cases, the tourist did not know that he had exceeded the limit. To avoid such a blunder, make sure you inquire about your credit card limits, and do make a note of it.

Credit Card Information
Note down all the important credit card information (account number, contact information, etc.), and keep them securely with you. Credit card thefts are very common while traveling, and this information will help deactivate your credit card in such circumstances.

Get an EMV card
Most of the countries abroad do not accept cards with magnetic strip technology (common in the U.S.), they cater to the use of EMV (Europay, MasterCard and Visa) cards, which have an embedded microprocessor chip. So, ask for a microprocessor chip card from your bank. These cards are also called “chip and PIN” cards.

Carry Multiple Cards
If you are not successful in getting an EMV card, then I advise you to carry multiple cards. At least one of them might work at a receptacle outside your country. Having multiple cards will also prove beneficial if one of your cards is lost.

Check Your PIN
If your PIN (Personal Identification Number) is 6 digit, then you might face problem abroad. Generally, the ATM’s there are programmed to accept a 4 digit PIN, so it will not respond to your 6 digit PIN. Thus, take the necessary measures by contacting your bank.

Separate Credit Cards
If you are traveling with your partner, each of you should have a separate credit card. You will experience the advantage of having a separate credit card, when either one of you loses his/her credit card. If you lose one of your credit cards, you can use the other credit card to meet your needs, till you get the lost card replaced.