The Silver Lake Editors

It’s no great revelation to say that America has become a credit economy. Credit can bring an upper-class lifestyle to the middle class, and it can be the instrument of a person’s financial downfall.

There are many ways to measure a person’s financial condition, but the benchmark is a FICO (Fair, Isaac and Co.) score. Those with a higher score can expect lower interest rates. However, those with a lower FICO score should plan on much higher interest rates, leading to higher bills each month, making their financial hole deeper and deeper. It will take months, even years, of diligent effort to raise your FICO score, but it is possible, and a really good idea.

Get rid of all but one or two cards. After you pay off one card, cancel it and destroy it. Read your credit card bill, not just the amount owed. Call your credit card issuer, and ask about a payment plan or lower interest rate. Get a free copy of your credit report from one of the major credit agencies, and read it. If there are any errors on the report (there is a good chance that there are errors), start writing and calling the appropriate persons. Document everything, and expect it to take lots of time.

For those with bad money problems, start with two simple steps. Make a budget and stick with it, and pay down your debts (even a small payment is better than no payment). Be very wary of the companies that promise to get you out of debt trouble; they may just make your problems worse.

The information in this book may seem like common knowledge, but considering the skyrocketing level of credit card debt, and the rising numbers of people living off their credit cards, it certainly bears repeating. This book does a fine job of showing, in plain English, just how credit works.… (meer)

Identity theft is the fastest growing consumer threat in America. The explosion of computer and graphics technology has made it a much easier crime to perpetrate than in the past. It is the sort of crime that can happen to anyone, and be perpetrated by anyone.

The most practical documents to obtain for an identity thief are a Social Security Card or a driver’s license (usually stolen and altered). With those, anything is possible, from getting new credit cards to cleaning out bank accounts. Administration of these systems is chaotic, and faking is easy.

The lead federal agency dealing with identity theft is the Federal Trade Commission. A problem with any federal investigation of a specific case is that the amounts are usually small, perhaps a few thousand dollars, and the victim and perpetrator usually live in different states (cost efficiency and jurisdiction). Therefore, the first responder will most likely be the local police department.

Preventing identity theft starts with the consumer. It is not possible to fill in all ID "holes," but things can be done, like safeguarding personal information, to make a thief go elsewhere. The consumer is responsible for notifying the authorities of illegal activity; the bank or credit card won’t do it. Clean out your wallet or purse. Keep a photocopy of your license, credit cards, etc. in a safe place, in case it is stolen. Get things like bank account numbers, PIN numbers, passports and birth certificates out of there, and into a fireproof box at home. When ID theft is discovered, document all letters and phone calls, no matter what.

This book is excellent. It’s small, so it can easily fit in a pocket or purse, and it is packed with easy to understand information. For those who are concerned about, or are victims of, ID theft, this is very much worth reading.… (meer)