Archive for November 2009
How to hack RFID-enabled Credit Cards for $8 (BBtv)
A number of credit card companies now issue credit cards with embedded RFIDs (radio frequency ID tags), with promises of enhanced security and speedy transactions.
But on today’s episode of Boing Boing tv, hacker and inventor Pablos Holman shows Xeni how you can use about $8 worth of gear bought on eBay to read personal data from those credit cards — cardholder name, credit card number, and whatever else your bank embeds in this manner.
Fears over data leaks from RFID-enabled cards aren’t new, and some argue they’re overblown — but this demo shows just how cheap and easy the “sniffing” can be.
This episode is part of our ongoing series of interviews with some of the thinkers, hackers, and tinkerers at the O’Reilly Emerging Technology conference this year.
For more episodes of Boing Boing tv, visit tv.boingboing.net.
Duration : 0:3:23
How you Trap Into Credit Card Debt
These days credit card or plastic money is very popular and used extensively. It is indeed of great utility if used in a calculative manner, but it is also the main cause that leads many people trap into credit card debt. Let see how it happen to most of people.
Many of retailers are implementing easy payment scheme for their products or services, with some fraction amount of money for monthly installed, you can buy thousand of dollars of items or go for a luxury vacation which you can’t afford to buy if one lump sum of money is needed, these monthly installment are automatically charge to your credit card. Every month, you just pay the minimum amount of your credit card balance and you continue spend on your credit card. Let use a case study to review on how a person credit card debt can grow and how it will take to get rid of it.
Case Study
Scott earn $2,500 a month, he is holding a credit card with interest rates of 12%. All his credit cards allow him to pay a minimum of 3% or $10 which ever is higher. His credit card limit is $15,000.
Scott’s credit card balance at current month is $4,550 ($3000 in principle and $1550 interest). He tends to pay the minimum of his credit card balance and each month he will averagely swipe about $500 on petrol and other utilities.
Let see how’s Scott’s credit card balance grow:
Month 1
Credit card balance = $4,550.00
Minimum Payment = $136.50
New Credit Card Spending = $500.00
New Balance = ($4,550 – $136.50 + $500.00) = $4913.50
Month 10
Credit card balance = $7976.02
Minimum Payment = $239.28
New Credit Card Spending = $500.00
New Balance = ($7976.02 – $239.28 + $500.00) = $8236.74
Month 20
Credit card balance = $11109.85
Minimum Payment = $333.29
New Credit Card Spending = $500.00
New Balance = $11109.85 – $333.29 + $500.00) = $11276.55
Month 30
Credit card balance = $13662.60
Minimum Payment = $409.88
New Credit Card Spending = $500.00
New Balance = $13662.60 – $409.88 + $500.00) = $13752.72
Month 36
Credit card balance = $14961.02
Minimum Payment = $448.83
New Credit Card Spending = $500.00
New Balance = $14961.02 – $448.83 + $500.00) = $15012.19
If Scott continues his practice, his will hit his credit card limit after 36 month compare to current month.
Let say Scott stop using his card with the balance at month 36 of $15012.19 and continue paying the monthly minimum. It will take him 228 months which equal to 19 years to just to pay off his $15012.19 debt.
The above example is just a simple case study to show you how your credit card debt may piles up so quickly without you even aware of it. You need a lot of time and spend a lot of money on interest in order to get rid of this debt. In real life, many people have more than one card and other loans to support; hence situation may even worse.
How to get rid of credit card faster & affordable?
If you are already at this situation, the first thing you need to do is to change your behavior of paying the minimum only. Paying more each month will definitely pay off your debt faster but the question is you may say that you can’t afford to pay more than the minimum. In actually fact, the easiest, faster and affordable way to get rid of your credit card debt is maintain your current minimum monthly payment.
For example, we use back Scott’s case. If he affords to pay the minimum payment of his $15012.19 debt, which is $448.83, this is his affordable payment. If he continues to pay $448.83 every month instead of the minimum of his credit card balance, he will need only 43 months to pay off his debt as compare to 228 months. This mean, Scott will have his debt free life in less than 4 years instead of 19 years.
In Summary
Credit card will remain important in many people life, use it intelligently for your convenient, but you much carefully manage your credit card balance, don’t let this plastic money drag you into financial crisis; the ideal way is pay the balance in full each month.
Cornie Herring
http://www.articlesbase.com/credit-articles/how-you-trap-into-credit-card-debt-91252.html
Understanding The Basics Of Bankruptcy Chapter 13
The US Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were situated under a system called the bankruptcy code. In this code there are chapters that refer to various issues in bankruptcy. One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.
In bankruptcy you by and large need to find some way of surviving while at the same time you pay your creditors what you owe to them. This sounds like a civilized way of dealing with this matter but the truth is otherwise.
In most cases creditors will try to force you to give them the assorted amounts that you owe. This form of force payment can range from a simple letter to torment via phone calls and even visits from your creditors. With bankruptcy chapter 13 you have the best way of stopping this force payment and you are given a way to live again.
When you file for a chapter 13 bankruptcy you actually have protection against the creditors. Once a payment plan is setup and both parties agree, then there is nothing more the creditor can ask of you. They cannot change their mind and ask for more money. Again they may try, but you are now covered by the law and your agreed upon payment amount.
With a bankruptcy chapter 13 filing, for the person who has gotten into a debt which seems to be eating up their life’s earnings, this law allows the person to find a fair way of paying off their debts.
The terms of repayment will need to be discussed with your creditors in your lawyer’s presence. This way the terms of payment will be in conformity with a court sanctioned payment scheme. With this payment scheme your debts can be paid off with an amount of money that you can afford to spare from your monthly living expenses.
Make sure you take the time to understand and know what your monthly expenses are. Don’t put yourself in a payment plan that you can’t afford. Give yourself enough room to cover all your debts.
Once you have filed for bankruptcy chapter 13 your creditors are no longer suppose to talk to you directly about your credit claims. There is a ceiling period of five years for you to pay off any outstanding debts that you have. This is not set in stone so understand your state laws and ask the questions.
During the period of your bankruptcy chapter 13 gives the court the right to oversee how the repayment is progressing. Your interests for this entire time period will be looked after by your lawyer. There are other benefits that you can find with this bankruptcy chapter 13 law. So, be sure to ask your lawyer and the court system the questions you need answered.
In this law you will be able to get a full discharge option for your bankruptcy claim if you have managed to pay off of all of the outstanding debts. The other great advantage of bankruptcy chapter13 law is that anyone can file for bankruptcy chapter 13 as long as they have a steady income with which they can pay off their debts.
Don’t be afraid or embarrassed about gathering information on bankruptcy or even filing. Just make sure that you handle it with care. Meaning get all your questions answered and if you file, pay your debt back promptly. And remember, it is a new start with the discharge option.
Bowe Packer
http://www.articlesbase.com/non-fiction-articles/understanding-the-basics-of-bankruptcy-chapter-13-113495.html
The Top Ten Things To Do Before You Apply For A Credit Card
Credit cards are convenient and safe to carry. They have their own advantages and disadvantages however, and these have to be weighed before you make any purchases using your credit card. There are several rules you will need to follow before you even apply for a credit card, and these include the following.
1. Keep only, at most, two credit cards. This will allow you to have back up if one credit card does not work.
2. If you think that a new credit card has better incentives than the card or cards that you currently hold, wait until you can replace one of your cards before applying for a new one.
3. Check with the credit card company if you can have your annual fees waived. Some annual fees can be expensive, draining your wallet further.
4. If you are applying for the credit card online, check if the credit card company server is secure. You can check this by looking at the status bar of your web browser. If you see a padlock icon, this means that your information is relatively safe from hackers.
5. If you can find reports on the credit card company’s track record, see if they have had any major cases of identity theft. Such records should be for public use, and they can tell you how secure the credit card company’s resources are.
6. Determine whether you are availing of the credit card because you want to spend conveniently, or because you want to avail of incentives. Some credit card companies offer cash back guarantees on as much as one percent of your total purchases using your credit card. Other credit card companies can translate your accumulated points into airline miles. Yet other credit card companies can offer you gifts the more you spend using your credit card. In all these cases, you may be forced into spending more.
7. Check your savings account and assess if you will be able to pay your credit card bills in full. Credit card companies charge high interest on unpaid debt, and, once these debts accumulate, they can force you into bankruptcy.
8. Make sure that the credit card company has twenty four hour customer support. This will allow you to immediately report stolen or lost credit cards, or contest any parts of your billing statement that should not be credited to you.
9. Study your spending habits. Are you living beyond your means, or do you save more than you spend? Are your earnings replenishing your savings, or do you spend everything that you earn? A credit card should make spending convenient for you, but it can also give the illusion that you are spending nothing. If you are a natural spender, acquire some discipline in your purchasing habits before applying for a credit card.
10. Be prepared to disclose all information, including anything that pertains to credit cards that you may have held in the past. This can help the credit card company in assessing your credit standing. If you are in good credit standing, then your credit card, once approved, will have a high credit limit.
A credit card is convenient to have, and easy to use. However, it can turn big spenders into even bigger spenders, so you have to know your habits and inclinations in great detail before making any plunge. Only then can you use your credit card wisely, and thus enjoy the benefits it offers.
Mario Churchill
http://www.articlesbase.com/finance-articles/the-top-ten-things-to-do-before-you-apply-for-a-credit-card-111056.html
Your Money: Guide to New Credit Card Rules – NYTimes.com
New York Times columnist Ron Lieber finds that there is some cause for concern in the sweeping credit card legislation that passed the Senate on Tuesday.
Related Article: http://tinyurl.com/nytimes32
Duration : 0:3:22
