Money Management

Learn how to spot debt collection scams and protect yourself from fraud. Recognize red flags like odd call times, payment pressure, and threats of arrest. [[{“value”:”

Most of us have probably gotten a call from a debt collector at some point. In some cases, they’re valid, but in many cases, those calls are fraudulent. They may try to get you to pay debt that isn’t your responsibility. Debt collectors generate more fraud reports than any other industry, according to the FTC.

Getting out of debt is difficult, and it’s even more challenging if you’re duped into paying debt you don’t owe. So, how do you spot these scams? Here are a few signs that the debt collectors on the other end of the phone are not what they seem.

They call at weird times

If a debt collector calls you very early (before 8 a.m.) or very late (after 9 p.m.), there’s a good chance they are not legitimate. At a minimum, they are violating the Fair Debt Collection Practices Act, which requires debtors to call between 8 a.m. and 9 p.m. in your local time zone. Scammers may try to call when you’re not fully paying attention, so you’ll pay without questioning them.

They pressure you to pay with a prepaid card or cash app

Scammers often ask you to pay with non-traditional payment methods because they are harder to track and harder to reverse. If the debt collector is pushing you to pay now, be wary. If they ask you to pay via Cash App, Zelle, Venmo, or any type of gift card, hang up. They are most likely scammers.

They threaten to tell authorities and have you arrested

Scammers use fear to convince people to look past red flags. In nearly all cases, you cannot be arrested for failing to pay consumer or business debts, like a credit card, mortgage, or medical bill. In the rare instances when you can be jailed for debt (generally for unpaid taxes or child support), you’ll only be jailed after a court hearing.

You don’t recognize the debt

Any debt collector is required by law to tell you how much you owe and to whom you owe that money. Even if it was a purchased debt, they have to tell you who the creditor was.

If you don’t recognize the debt, ask for the original purchase agreement or another validation of the debt. The debt collector has 30 days to provide this information or must pause collection efforts.

They ask you for information they should already have

A real debt collector should already know your name, address, birthday, and other personal details. But if the caller is a scammer, they may ask for that information, sometimes claiming they need to “verify” it.

If the person calling asks for information they should have access to, they’re likely a scammer. If you’re not sure, hang up and search online for a phone number for the company and call back.

What to do if you think a call is a debt collection scam

First, never give out sensitive personal or financial information, including your Social Security number, bank routing number, or account number. Next, ask them to verify the debt. For example, if you owe money on a credit card, they are required to provide the original agreement to prove the debt is yours.

If you’re unsure if the call is legitimate, hang up and search for the company’s phone number online. Call them directly and ask if they have a record of debt.

Finally, file a report with the Consumer Financial Protection Bureau. Companies are required to respond to CFPB complaints within 60 days.

Being on the hook for legitimate debt is stressful enough, so stay vigilant and don’t get duped by scammers. Once that money leaves your checking account, there’s a very real chance you won’t ever see it again.

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Even if you don’t love shopping, you might love shopping at Costco. See why our author considers Costco to be a “cool friend.” [[{“value”:”

I hate shopping, but I love shopping at Costco. I’ve been a Costco member for 20 years. My favorite reason to shop there is not just the low prices or the rewards on Costco credit cards or the $1.50 hot dog combos. My favorite reason to shop at Costco is something special and complex that has to be there for any long-term relationship: trust.

That’s right: I have a high level of trust in Costco. I trust Costco to be my outsourced concierge and “personal shopper.” I trust Costco to give me great deals on everyday items and tantalizing treasure hunts for things I didn’t know I needed. I trust Costco to help me find pants that look good on me.

Yes, Costco helps me save money. But more importantly, Costco also helps me save time, stress, and frustration — and as a busy middle-aged person, a parent, and a small business owner, time is a valuable commodity.

Let’s look at a few ways that Costco helps build trust.

Costco is my “shopping buddy”

I generally don’t love shopping. I hate standing in line at checkouts, I don’t know how to find items on shelves, and I don’t love bargain-hunting or doing product research. I’m not going to spend eight hours of my precious weekend driving all over town to four different jam-packed big-box stores just so I can save $5, or even $50, or maybe even $500. I’m busy! Time is money!

Costco is like my “cool friend” who goes to the store with me and helps me get my life sorted out. Costco helps me save time by outsourcing my shopping decisions in so many ways:

“Is this brand of hummus good? I haven’t tried it yet, but I trust Costco.” “Is this deal on tires the absolute best in town? Maybe not, but I trust Costco.””I need a pair of water-resistant hiking pants for a trip to Europe next week — I’ll buy a pair from Costco online.”

With Costco, I don’t have to think about all this stuff. I don’t have to agonize over every decision. I trust Costco to give me good deals and find me good stuff. Costco simplifies my life as a consumer.

Costco can be your “everything store”

Costco is not just a place to buy groceries in bulk. It can provide almost everything you need for so many aspects of life — from appliances to furniture to pharmaceuticals. I get my eye exams and annual vaccinations at Costco; if I could get all of my healthcare done at Costco, I would. I’d probably save a lot of money.

Here are a few of the wildly different categories of things I’ve bought at Costco in the past 20 years:

Laptop computersBig screen TVs Appliances Tennis balls Rotisserie chicken Living room furniture Summertime floaty toys for the pool or lake Organic maple syrup Medjool dates Ice cream novelties Comfy socks

You can even use Costco to get a discount when buying a car, or use Costco Travel to book your next vacation. I haven’t tried Costco Travel yet, but I would like to — I trust Costco to help me have a great experience, even in another country or a different way of traveling I haven’t tried before, like an all-inclusive resort in the Caribbean.

Costco can help you be more adventurous. You don’t have to research all the details of every purchase yourself, because Costco does it for you. You can just show up, swipe your credit card, and get on with your life, feeling confident that you made a good choice.

Costco has a generous warranty and return policy

Another reason why I trust Costco so much to be my “cool friend” and shopping buddy: Costco backs up its products with a generous return policy. With few exceptions, you can return almost anything to Costco. And for electronics and laptops, you typically get a two-year extended warranty and great Costco tech support.

I usually have no issues with anything I buy at Costco. But knowing that Costco has my back in case something goes wrong with a purchase helps build even more trust, and gives me more confidence in the Costco shopping experience.

Bottom line

My favorite reasons to shop at Costco are psychological: trust, confidence, and safety. Instead of wondering if I made the right choice or worrying if I got a good deal, Costco helps me feel well-supported.

The further I get into life, the less time I want to spend shopping, and the more time I want to spend living. Costco helps me save time and get my life back — while filling my home with great stuff and cheap rotisserie chicken.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Member’s Mark products are a Sam’s Club staple. Read on to learn about five Member’s Mark products that stand out right now. [[{“value”:”

When I hear “Member’s Mark,” I automatically think of toilet paper, dog food, and other household staples. I’m not sure why, but it never occurred to me that Member’s Mark offers a real mix of products.

From fresh flowers to furniture and home decor, it’s possible to fill a home with Member’s-Mark-branded purchases. Better yet, you can do it while watching your budget.

Member’s Mark goods are regularly rotated, with a new batch hitting shelves each season. For example, this month, there are plenty of items custom-fit for fall. Here, we take a look at some of the brand’s most highly rated products.

1. Member’s Mark Hotel Premier Luxury Bath Towel, Assorted Colors

Customer rating: 4.8 out of 5

Sam’s Club may not be the first place you think of when you’re in the market for towels. That may change after you’ve compared the feel and price of Member’s Mark 100% Cotton Hotel Premier Luxury bath towels to department store towels. While you’re at it, you may want to pick up matching hand towels and washcloths — and enjoy a lower credit card tab in the process.

Sam’s Club price: $7Amazon price for a similar product: $23

2. Member’s Mark Seasoned Rotisserie Chicken

Customer rating: 4.7 out of 5

There are at least three good reasons Sam’s Club limits members to three rotisserie chickens per shopping trip.

They’re deliciously seasoned.They take care of dinner, so your only job is to add a side dish.They won’t put a massive dent in your budget.

With nearly 27,000 5-star ratings, you know the chicken must be good. Plan ahead, and you can pick up enough to feed the family on Halloween before sending the kids out to collect their fill of treats.

Sam’s Club price: $5Kroger price: $10

3. Member’s Mark Premium Baby Wipes, Fragrance Free, 12 pk., 1152 Wipes

Customer rating: 4.8 out of 5

Granted, Member’s Mark Premium Baby Wipes may not be tucked into the same fancy packaging as some of the more expensive brands, but they also don’t contain parabens, perfume, alcohol, or phenoxyethanol — ingredients that can be tough on sensitive skin.

If you’re looking for a way to keep your car (and self) clean during car trips, throwing a pack of baby wipes in the glove compartment before leaving the house can be a lifesaver. Whether you spill coffee on yourself or one of your dogs gets carsick in the back seat, hypoallergenic baby wipes take care of the mess without leaving the smell of chemicals behind.

Sam’s Club price: $0.02 per wipeAmazon price for a similar product: $0.06 per wipe

4. Member’s Mark 42″ Pre-Lit Animated Pumpkin

Customer rating: 4.4 out of 5

Just in time to decorate your front yard for Halloween, Member’s Mark offers this 42″ pre-lit animated pumpkin. At 3.5 feet tall, it’s sure to be much larger than some trick-or-treaters who knock on your door.

This is not your run-of-the-mill Jack-O-Lantern. With its toothy grin and large witch’s hat perched atop its head, it adds a pop of color (and a lot of fun) to your Halloween display. It’s adorned with 70 LED lights and features interactive sound, sensor, and motion functions.

And best of all, it’s Halloween decor that can be used year after year.

Sam’s Club price: $85Bonanza price: $129

5. Member’s Mark Halloween Pumpkin Serving Set

Customer rating: 4.8 out of 5

Imagine cast iron molded to look like the crossbar over a cooking pit. The crossbar rests on fiber stands that look suspiciously like witches’ brooms. And hanging across the crossbar are three ceramic Jack-O-Lantern cauldrons, each filled with whatever you may be serving at your Halloween party. With a total size of 29″L x 5.25″W x 11.75″H, it won’t take up all your table space, but will create quite an impression.

Sam’s Club price: $40eBay price: $51

The moral of this story? If you’re not already doing so, check out Sam’s Club with each change of the season. Sam’s has a relatively delightful way of sneaking in products you’d never dream of from Member’s Mark.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dana George has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.

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Entrepreneurship isn’t for everyone, and the obstacles are real. But with the right mindset and strategies, here’s how to overcome common hurdles. [[{“value”:”

No one likes to encourage people to start their own business more than me; I am the head cheerleader for Team Small Business. That said, I also am a realist. I know not everyone is cut out to be an entrepreneur. Some people are artists, some are athletes, and some people like earning a regular payroll check as an employee.

And similarly, even if entrepreneurship is in your blood, timing is critical. Many factors have to line up just so for a new venture to launch and then become a successful, profitable venture.

Obstacles are real. Here’s a look at some of the most common hurdles that may be holding you back and, more importantly, how to overcome them.

1. Lack of money

Perhaps the biggest barrier to starting a business is money, or the lack thereof (in any case, it is usually perceived to be the Big Problem). It takes money to launch a business. Start-up funding is essential, as is operating capital. As a result, many people feel they simply do not have enough to launch.

But the fact is, there are many ways to fund a business, including small business loans, crowdfunding, and microfinance options. Additionally, if your business idea is strong, a business partner could help with initial financing.

Beyond that, starting on a shoestring is also doable; entrepreneurs start businesses literally every day, while lacking the ideal amount of funding. Estimates are that the average business spends about $12,000 the first year to get up and running. But you can consider starting small and scaling up as the business grows, rather than waiting for everything to be perfect before beginning.

2. Lack of time

In my experience, the two things that challenge small business people the most are lack of money, and lack of time. Given that, if time constraints are your bugaboo, welcome to the life of the entrepreneur. You are in good company!

Between a full-time job, family commitments, and personal obligations, it can seem impossible to carve out the time needed to launch something new. And that can be true. But it’s also the price of admission to get to play in this fun playground.

Successful startup entrepreneurs find ways to fit business development into their hectic schedules because they know their priorities; the startup has to be No. 1. If it is for you, then begin by setting aside a few hours each week to focus on your business idea. Building gradually allows you to test your concept without giving up your current job.

3. Lack of confidence

Fear of failure can be paralyzing. Many potential entrepreneurs doubt whether they have the chops or knowledge to really start a business, or they are afraid the business will fail. And here’s the truth:

No, you don’t know everything you would like to know. It’s not going to be perfect, and neither are you.

And that’s just fine.

OK, with that out of the way, by acknowledging your fears, you can take the next step.

Since confidence comes from preparation, start preparing. Research your industry, connect with mentors, and draft a solid business plan. As you begin to put up the framework for your nascent business, and as you better understand your market, you will begin to see your path to success. Your confidence will come.

4. Lack of support

Entrepreneurship can be a lonely path if your family and friends are not fully behind you. So you have to get your team on board, whether that be your partner and kids, your friends, your parents, your extended family, or whomever.

Next, join local or business groups, online entrepreneur forums, or find a mentor to offer guidance and encouragement. If you surround yourself with like-minded individuals, you get the emotional support and practical advice you need to stay on track.

5. Fear of competition

Some people hesitate to start because they feel the market is already saturated. While competition in a capitalist system is real, consider that this fear just may be a good sign; after all, competition means that there is demand for your product or service.

The key is to stand out. Make your business different, special, better, essential. Offer something unique — whether that is superior customer service, innovative products, or targeting an underserved niche audience — and you will find your place in the market.

Once that happens, it is you who will be the competition.

Life is full of obstacles and challenges, and that includes starting a business. But by starting small, surrounding yourself with supportive people, and cultivating the right attitude, you just may find that those perceived and real obstacles will fall away.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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It’s good to have a decent chunk of money in savings. But read on to see why having too much isn’t ideal. [[{“value”:”

The Federal Reserve reports that 37% of Americans don’t have enough money in their savings accounts to cover a $400 expense that pops up out of the blue. So if you have considerably more money in savings than that, you’re clearly in a better place.

But you also need to be careful not to overfund your savings account. Believe it or not, there’s a serious downside to keeping too much money in savings.

When you go overboard

You might assume that the more money you have in your savings account, the better off you are. And to be clear, it’s a great thing to have a generous emergency fund for unplanned expenses.

The general guidance is to aim for enough emergency savings to cover at least three months of essential bills — such as rent, groceries, and utilities. But if you have enough cash to cover six months’ worth, you’re that much more protected.

But there is such a thing as having too much money in your savings account. If you have a lot of cash sitting there beyond what you need for your emergency fund, you risk shorting yourself on the higher returns you might get elsewhere.

These days, it’s not too difficult to find a savings account with an APY in the 4% range. But that’s not the norm. And it’s not unheard of for savings accounts to pay as little as 0.01%.

The stock market, on the other hand, has averaged an annual 10% return over the past 50 years, accounting for good years and years when stocks underperformed. If you take some of the extra cash you have in your savings account and invest it in a brokerage account, you might end up with a lot more money after a long period.

In fact, let’s say you have an extra $5,000 in your savings account. If you keep it there and earn a yearly 2% return, in 20 years, that $5,000 will be worth about $7,430.

But if you put that $5,000 into a stock portfolio that generates a yearly 10% return, then in 20 years, your $5,000 will be worth about $33,637. That’s a huge difference.

Why settle for less?

It’s better to have extra money in a savings account than too little. But once you’re done saving for emergencies, know that putting your cash into stocks could pay you a lot more over time.

Now, you do need to make sure you’re able to keep your money invested for many years before opening a brokerage account. If you cash out a stock portfolio too soon, you might do so at a time when it’s down, thereby taking losses.

As a general rule, it’s best to make sure you have a 10-year window or longer when putting money into the stock market. But if that’s the case, know that you stand to gain quite a lot by pulling some extra cash out of savings and using it to buy stocks instead.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Fed rate cuts usually lead banks to slash their rates, as well. Here are the three groups who stand to benefit the most. [[{“value”:”

The Federal Reserve slashed the federal funds rate by half-a-percentage-point on Sept. 18, 2024, causing savings account and certificate of deposit (CD) rates to dip from the 5.00% APY highs we enjoyed for over a year. That’s the bad news.

The good news is, interest rates on other types of banking products are coming down too. And with more rate cuts expected throughout the rest of the year into 2025, the following three groups could save a lot of money.

1. Homeowners who took out mortgages in the last few years

Mortgage interest rates have been high for the last few years, and that’s caused many recent home buyers to pay more than they would have if they’d purchased their homes before inflation got out of hand. But things are looking up.

Mortgage interest rates have already come down slightly and they’re likely to decrease further with more rate cuts. To be clear, the federal funds rate doesn’t directly affect mortgage rates, but many banks typically cut their rates when the Fed slashes the federal funds rate.

If you hope to refinance, I’d wait until later in 2025. Refinancing means a lot of paperwork and you’ll have to pay closing costs again. It’s something you only want to do once. Since we anticipate more rate cuts, it’s smarter to wait until rates come down further before proceeding with refinancing.

2. Those who took out a personal loan in the last few years

Like homeowners, those who took out a personal loan in the last few years likely paid a higher rate simply due to the economic conditions when they took out the loan. This could prove even more costly for personal loan borrowers than homeowners because personal loans are unsecured debt. Since there’s nothing the lender can collect if you fail to pay back what you owe, they charge higher interest rates to begin with.

Refinancing your personal loan could help you secure a more affordable monthly payment. Or if you’re comfortable with your current payment, you may be able to pay your debt off more quickly.

But again, timing is critical. Personal loans also have closing costs, so you only want to refinance them once. Wait until a few more rate cuts happen so you can lock in a significantly lower rate.

3. Credit card owners carrying a balance

Credit cards are also a form of debt that charges interest to those who carry a balance, so they may also see a dip in their rates. However, it’s up to the lender to decide how much to drop its annual percentage rates (APRs).

Credit card companies are required to notify you when making a change to your card’s interest rate. However, this notice often comes in the form of a small mention on your monthly statement, so it’s easy to miss. Check your latest bill if you’re not sure how much you’re paying in interest each month.

Keep in mind that, while a lower credit card interest rate is helpful, it’s still considered high-interest debt. It’s in your best interest to pay it off as quickly as possible, so you can divert all the money that’s going toward those payments to some of your long-term goals.

If you have any questions about your loan or credit card’s interest rates or how the company’s rates may change over time, reach out with questions. Keep an eye out for further Fed rate cuts as well, so you know when you may want to consider refinancing.

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Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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