Changing your name with less hassle

The Problem

Dealing with name changes due to a major life event can be a bit of a headache.  For starters, there is the Social Security office, Department of Motor Vehicles, and IRS.   Since a lot of these changes must be done in person, the time involved is considerable.

Kiplinger's recently had an article about a few services that can help relieve some of the burden.  But, what you might not bargain for is the pain those other accounts in your life can be, such as banks and frequent flyer and loyalty programs.  Even worse than what you might imagine.  

The Experience

While one might think it is straightforward, airlines in particular, given the burden they have in maintaining passenger security, are stringent with identity changes.  The process typically involves writing a letter and enclosing proof of the name change, such as a marriage certificate copy.  But, that's not everything.  One needs to make sure that their new name matches exactly how they want their program information to appear.  Again, not as straightforward as one might think.

My wife had a huge headache with changing her last name and making it her middle one and adding my last name.  The computer thought it was a hyphenated name, but she only intended to have her new middle initial displayed. As a result, her boarding passes and account information were never in sync.  Because of that nuance, frequent flyer flight credit and other ticketing issues were an absolute nightmare to manage. To make matters worse, this airline was going through IT changes and therefore she had to re-submit the same information, spend hours on the phone, and follow up to make sure the change was processed correctly in both systems.  One can also run into trouble if their address has changed, too.  Not only is a marriage certificate necessary, but driver's license, or some other proof such as a utility bill, might be needed.

The Solution

First, order a bunch of certified marriage certificates.  You will likely need several. For garden variety government form changes, you may not need to pay for a service to help you out, but since it's only $30, it might save a bit of time.  For your loyalty programs, use a site such as Yodlee to track every account you have, print a list out, and systemically check off when you have changed your name on each.  If you have zero balances in any of them, and no elite status, you might be better just cancelling the account and starting over.  Ironically, one doesn't need to prove their identity with a driver's license or other identification until a change to the account is necessary. 

Juice More Returns With Your Extra Cash

The Problem

As far as interest bearing savings and checking accounts go, returns are paltry.  According to Bankrate.com, the national average is still only about .57%, which is pretty pathetic.  One could take more risk and invest in a bond or stock, of course, but that involves other complications such as research, investment strategy, etc.  Or, one could try something else.

The Solution

Another option is peer-to-peer lending, essentially lending without banking institutions involved.  Enter  Prosper.com which allows one to lend money for as little as $25 for a "Note" and reap rates of 10% or more.  Prosper and other similar platforms, provide a platform for both lenders and borrowers who are seeking to fill a gap: lenders want better returns than a bank or even stock or bond consistently provide, and borrowers need cash that might not otherwise be available.  Such examples include: starting a business, paying off loans such as credit cards, or making home improvements.

The Experience

I have been lending money for over a year now on Prosper and am doing quite well.  Well is relative, of course, but I will take the 16% annual returns with moderate risk any day of the week .  That's just my experience, of course, but it is not atypical.  Not only are Notes available with varying levels of risk (debt quality essentially), terms, and expected rates of return, diversification is not difficult to achieve.  According to Prosper.com, "For Notes purchased since July 2009, every Prosper investor with 100 or more Notes has experienced positive returns."  Since the minimum investment is $25, achieving optimal diversification is possible with $2500.

The Action

When you get a chance, take a look at Prosper and see if it is right for you.  And remember, the greatest risk is not taking any.  Your idle cash is at risk if is not being aggressively utilized. 

How To Save On ATM Fees

Friends don't let friends pay ATM fees...

In the wake of the mortgage crisis, banks are hungry for revenue, especially cash.  Just because they have lost their shirts in making bad loans and now trying to recoup their losses by charging higher fees for transactions that might have once been free (or less costly), don't "pay" again to bail them out.

This past weekend, I went to an awesome wedding at an awesome hotel.  The day after, a friend was going to use an ATM machine in the awesome, multi-star hotel that we were staying at and I stopped him.  "Do you know how much that fee is going to be?  They are going to charge you a fee from the bank, the ATM owner, and then your home bank, too.  You are going to get socked big time," I explained.  In the end, my buddy decided not to use the machine (well at least he didn't do it when I was around).  It breaks my heart when people pay ATM fees unnecessarily.

However, in the course of your daily life, especially when traveling on trips, there are times when you need to withdraw cash for food, cabs, etc., anywhere credit/debit cards are not accepted.  Using a non-bank ATM, or another bank's ATM that's not your own can be costly.  According to Bankrate, "the average ATM withdraw fee is $1.97," and that was quoted from an article written in October 2008, before things really started to fall off the cliff with the economy.  And, that's just an average and one part of their entire transaction. 

Sometimes, these fees are inevitable: you are in a foreign city (or country), you are in Vegas and feel a streak coming on and you need cash, whatever.  Before you use that "foreign" ATM, a little proper planning ahead can save you some cash.  If you know exactly where you are going to be when you go out, a little pre-planning will save you.  Here are a few tips: 1) use your bank's ATM mapping service online.  Here are a few links here: 

--Bank of America
--Wellsfargo
--Chase

Links may change, so when in doubt, visit your bank's webpage.


2) If you don't have a web connection handy, use your bank's 800 number ATM locator.  The easiest way to look that up is to simply look at the back of your ATM card.

3) Bring extra cash ahead of time.  Sometimes we don't want to roll out with more cash than we need for many reasons.  But, if you are in a big group in a safe area, it's worth it to avoid unnecessary fees.

Consumer's Edge Success Stories

A friend on the west coast will be sharing his shortly on how he saved on Internet access.  More later..

How To Take Advantage of Credit Card Savings Programs & Rewards

While there are several other websites and blogs that track various credit card deals, I am reminded myself, especially the other day in the mail, that credit cards can often come with discounts that people either don't know about or forget. Case in point, a signature Visa card saved my hundreds of dollars this past summer for two trips I took which involved staying at Hilton properties. Clear as day, Hilton's website mentioned special savings of up to 25% if one used a signature Visa. In this case, Hilton had a handy tool for checking if your card was eligible.

Consider also Discover and Mastercard savings. While performing your due diligence in shopping for items online (a future post which will go into detail) check the discovercard.com or mastercard.com websites to see what special promos they may have. The savings may surprise you. It could be x % off of a rental car, or discounted movie tickets, just for using your card that would have otherwise. However, don't use your card if you are going to carry a balance. It's not worth the interest. Regarding the offer in the mail, Bank of America has something called "Add it up," a program whereby consumers can receive up to 20% cash back and discounts from 270 retailers, the literature reads. A link to the program is here:

Other cards may have similar offers, too. Check your card's website, or call their customer service directly and ask.

Savings Accounts

If you have extra cash lying around, make sure you are earning as much as you can in your savings account. Checkout Bankrate http://bankrate.com/ to compare rates.