It is called the Direct Express Debit Mastercard and you can use it to get your monthly benefits for programs such as Social Security.

Our partners at TheStreet.com explain the following about the Mastercard:

“The new payment card will be far safer and easier — especially for those who do not have bank accounts. It will be “re-loaded” monthly with the benefit amount. Then, the card can be used with a secure PIN to get cash at any ATM where debit MasterCard is accepted.”

As you can see right off, the Mastercard is really beneficial for those who use it. Some people choose not to have a bank account and instead cash all of the checks they receive from their Social Security. Often times when you cash a check and do not go to your own financial institution, you end up paying huge fees; this card is a way to avoid these extra expenses. Social Security recipients also no longer need to carry around large sums of cash. Not only is it not safe to carry a lot of cash around, it is also extremely risky. If it gets stolen, there is no way to replace the cash that is gone, this is not the case with the debit card which can be replaced.

Another benefit?…Checks no longer need to be sent through the mail! According to Judith Tillman, Commissioner of the Treasury Department’s Financial Management Service, they received 700,000 reports of stolen or lost checks just last year. That is an incredible amount of money that disappeared and recipients never got to benefit from it.

With the Debit MasterCard, there are some fees that you will need to pay. After your first withdrawal from an ATM each month, you are charged $.90 per ATM transaction. However, we all know that even with a bank account we can receive fees from our banks PLUS fees from the bank who owns the ATM. So to me, $.90 seems like a fair withdrawal fee to pay since often times I can pay up to $5.00 or more for using an ATM not owned by my bank. Plus, you will have already been saving on the cost that you would pay to have your check cashed. However, you can avoid the fees by asking for cash back at stores such as CVS or Walgreens when you are making a purchase from these stores (believe me, I’ve done this a time or two just to avoid paying fees)!

The Debit MasterCard works a little bit like direct deposit into your bank account. But instead of the cash going into a savings or checking account, it automatically gets put onto your MasterCard.

So, you must decide if the card is for you! The benefits definitely outweigh the cost and the card is both safe and convenient to use. If you feel as though you are ready for something that can make your life easier, check out the website for more details on your next steps to take!

Photo: Kevin Rosseel

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Financial Road Block?

The three little pigs built their homes to withstand the Big Bad Wolf. One built a home out of straw, another out of sticks, and the last little piggie chose bricks. From this perspective, it’s easy to choose a house.

As adults we know home ownership — and its funding — is a lot more complicated. Take for instance the current mortgage crisis. This week Greenspan called a bottom to the housing market, and The Wall Street Journal ran a poll:

Do you agree with Alan Greenspan’s forecast for house prices to stabilize in the first half of 2009?

You can weigh in yourself at The Big Picture blog.

Pigs have a bad reputation for being stupid or greedy. In reality, science shows that pigs are just as intelligent and social as the family dog. Unfortunately, descriptions like “greedy pigs” creep into discussion about who is at fault when discussing the mortgage crisis.

The short answer is that everyone is partially at fault — our culture for being more accepting of debt, our banking and government systems for relaxing rules, and our media for encouraging too many of us to take brick houses and turn them into straw.

An in-depth series in The New York Times explores the role of advertising in the mortgage crisis. Specifically, how advertisers (industry self-described “ad-holes”) literally re-wrote the language of credit to make borrowing against your primary asset more palatable. And, coupled that with images of the “good life”.

And is this debt crisis situation as “American as apple pie”? Unfortunately, no. Here’s a British take on the recent housing troubles:

A crumbling sign on the first house boasts it is “For Rent” but, given that it doesn’t even have a door, it seems unlikely the owner, if there is one, will be getting too many inquiries.

Read more.

And another explores how we Americans are exporting our credit card addiction:

“People who would kill their sisters or daughters for bringing shame on the family would do anything to avoid being labeled a debtor,” said Nazim Kaya, the president of Consumers Union, an advocacy group that helps those who fall into debt.

But in a cultural shift that has swept aside centuries of tradition, credit cards have become commonplace here. Only three decades ago, Turkey had fewer than 10,000 cards; today it has more than 38 million.”

Read more.

So is your “financial house” made of straw, sticks or bricks?

A recession is never easy for anyone. Trying to make ends meet while still saving for retirement can be extremely frustrating. The key is to try and keep saving regardless of how much you would like that extra cash now instead of later.

It is possible that by the time people retire they may have seen around 5 or more downturns in the market leading to a recession. People must take the right steps to ensure that they can make it through these recessions while still saving for retirement.

Newsweek suggests 3 things to increase your savings: (1) working longer, (2) keep contributing to your retirement savings, and (3) delaying your social security. If you do these 3 things, it can increase the purchasing power of someone around 62 years of age by 30%.

However, sometimes people don’t have a choice and have to retire earlier than they would have liked. If this is the case for you, try to find some part time work to keep things going. Another way to bring in some short-term cash during a recession could be to go through all of your belongings and sell some things at a garage sale. Although this may not generate a ton of cash, it can be helpful when times get tough.

Whether you are young or almost at retirement age, planning is still a must. There are things that you should and should not do during a recession that will help you out in the long-run.

DON’T SPEND MONEY YOU DON’T HAVE
Don’t spend before you actually get the money. Spending before the money is in your pocket is not a good way to do things. Putting things on your credit card and overspending can put you in a lot of debt that you are unable to get yourself out of. This will also hurt your credit score which can affect you in the future.

DON’T BE LATE WITH PAYMENTS
Being late with any type of payments (student loans, credit cards, etc.) will also affect your credit score and hurt you.

KEEP SAVING
This is huge even if it might be hard to do sometimes. Even putting a small amount of your pay check towards your 401(K) can be extremely beneficial in the long-run. Not only does this help you save on the money that gets taxed, but you are also saving towards your retirement. However, try not to borrow money from your 401(K) until you retire.

According to an article on MainStreet.com, if you borrowed $5,000, you’ll have to repay $1,000 per year in four $250 payments. And further, if you don’t pay all the money back it will be considered taxable income and you will also pay a 10% penalty fee. This is something that you really don’t want to have to deal with!

Although times are tough and groceries and gas are still rather expensive, the key is to stick it out. Everyone is in your shoes and struggling just as much. Some don’t have jobs and are searching at a time when unemployment is at its highest in the past 4 years.

Just remember, try to keep saving! It may be hard to see the benefit in the short-run, but in the long-run you will benefit from your savings in your retirement.

Picture: Michael Connors

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Be Prepared! Start an Emergency Fund Today
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With 11 major company’s information being hacked into, including Barnes and Noble and OfficeMax, consumers have even more reason to be concerned about identity theft and how they can protect themselves.

Although this is a problem in itself, an even bigger problem is that one of the biggest leaks of private information is that from the U.S. government. According to an article from MainStreet.com, there were more than 230 security lapses from local, state, and federal governments between 2005 and 2008. This breach of security caused the exposure of more than 44 million records!

This is a much bigger problem than some could imagine. It is strange to think that the people you would think to trust in the government are somehow leaking the personal information of thousands of people.

But, let’s be honest, it is definitely not all the governments fault. There are things that we can do to protect ourselves from identity theft as well.

It is much easier for people to get a hold of your information than it used to be. With consumers using online banking, putting their passwords into public computers, and using their credit and debit cards at retailers more than ever, it seems easy to see how people would find a way to hack into this massive amount of information.

Try to do some of the following:

Monitor Your Bank and Credit Card Accounts – This one really is not that hard to do. Everyone can now check their accounts online and banks have made this procedure really simple. Check your account every few days to make sure that your card has not been compromised with charges that are not yours. Also, try to check your accounts from your personal computer and not a public one. You don’t want people to get your passwords or information because you forget to log out of your account.

Pay With Cash – Whenever possible, don’t use your credit card or debit card. I know this is not always convenient, but if you are buying something from a store or location that you may not trust their security, then use cash! It is always better to be safe than sorry.

Don’t Carry Important Documents With You – Make sure to leave things like your social security card, passport, and resident card at home so that if your wallet or purse gets stolen, this extremely important information is not in there. Also, try to keep the minimal amount of cards in your wallet as well. You don’t want to carry all your cards with you every time you go out just in case.

Use a Shredder – Once you put your trash on the street or sidewalk to be collected, it is on public property not your own private property. Shred your information so that people cannot find it in the trash. I know this may sound a little bit skeptic of people, but honestly, think of all the private information you throw away everyday! And not all shredders are expensive either. My mum bought me one the other day (with a store rebate) for only $20. Shop around! Having a shredder can really help you out.

I know that sometimes it isn’t always easy to do the above, but you really want to try to protect your identity as best as possible. Although you can’t control everything, you are able to control certain things that will help you to protect yourself. Better to be safe than sorry!

Photo: Jane M. Sawyer

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Vanishing Money: Consumer Debt Attacks
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How do you stop digging yourself deeper into debt?

It’s a question we hear a lot here at Geezeo, and that’s no surprise. Americans carry a lot of debt and it is easy for mounting debt to grow. Sometimes, it grows faster than you can pay it off and that can be very stressful.

So here are five sure-fire strategies to help you help yourself:

1. Give Yourself a “Time Out”. Parents know the “time out” routine. You can do the same with your credit card. Vow to wait 48 hours before you buy anything. If you still must have it in 48 hours, then buy it — with cash. Don’t have the cash? Don’t buy it.

2. The $100 key rule. Actually, this can be the $50, or $25 rule. Commit yourself to never spending more than X amount when you go to the store for something else.

Say you go to the store to buy a new shirt for work. You estimate a new shirt will cost you $40. Do NOT leave the store with any additional purchases that add up to an additional $100 (or $50, or $25). Set your spending target amount BEFORE you go shopping. Do not change this magic number.

Here’s the key: that’s $100 (or $50, or $25) you’re not spending in CASH. You see: we’re assuming you’ve decided not to use your credit cards. This rule helps keep your cash flow flowing — so you’ve got an extra $25, $50, or $100 to put towards credit card payment.

3. Stop using your credit cards. Hello, obvious! If you’re in the habit of leaning into your credit cards this can be tough. Some ways people have gone cold turkey: freeze your cards in the freezer. Give your cards to a trusted friend to keep. Start carrying cash when you go out and do not take your cards with you. Get professional help if you can’t stop spending on them…

4. Delete your cookies! Those who prefer the twice-gratification of online shopping (once when you buy, another buzz when you get the item)… delete your browser cookies! These “helpful” cookies remember your credit card numbers. Delete them so you must dig out your credit card in order to purchase something (after your 48 hour time-out rule is observed, of course).

To delete cookies using the Firefox browser, go to Tools > Clear Private Data… > check “cookies” and hit the “clear personal data” button. Browsers like Internet Explorer and Mac Safari offer similar cookie cutters.

5. Count to five. If you can’t seem to wait 48 hours (and that should tell you something!), at least count to five. Count five good reason why you must purchase this item. Hint: the reason “because I don’t have cash” is not acceptable. Count to five with all your cash purchases, too.

Here are five related questions borrowed from the environmental movement. Ask yourself these before splurging on stuff you don’t really need:

Simply put: look carefully at every purchase. You cannot dig yourself out of debt without curbing your spending habits. Share the tips that have worked for you.

5 More Messy Money Mistakes and Quick Fixes
Farnoosh Torabi | MainStreet.com

To read part 1 of Five Messy Money Mistakes and Quick Fixes click here.

Few mistakes irk MainStreet more than those made with money. Good thing many messy money mistakes can be solved pretty easily. MainStreet rounded up some capital money managing minds to tell you what to do.

MISTAKE: Ignoring Bills
Even if you pay your bills online, you should still take a look at the paper copies before tossing them in the trash. A quick glance at your Verizon (VZ) bill may show you’ve been going over your minutes and paying extra every month. You could also catch extra promotions or gift offers.

THE FIX: Hire a Snail Mail Scanner.
If you’re out of town often, have a fear of paper cuts or just prefer doing everything online, Earthclassmail.com is one solution. It’s an online snail mail scanner that lets you view your mail as a PDF document. It then shreds or forwards your mail, upon request.

MISTAKE: Writing Checks
While the use of checks is declining each year, the Federal Reserve still recorded some 30 million check payments in 2006. We spend $22 billion on stamps each year, alone, according to the United States Postal Service. But that’s beside the point. “It’s not the money you spend doing them, it’s the reliance on snail mail and the exposure to possible theft that are the major downsides,” says Greg McBride of Bankrate.com.

THE FIX: Hire an E-Payer.
There are legitimate Web sites that keep tabs on your bills and help you e-pay. Check with your bank first, as it may offer a free service linking your bank account to creditors. Otherwise, comparison-shop for a third party bill payer. Checkfree.com is the chief middleman for online bill payments. Facebook users can also download the Pay Me application for free, which is powered by PayPal (EBAY), for peer-to-peer electronic payments.

MISTAKE: Buying Extended Warranties
An extended warranty is a cash cow for retailers. “At some stores, it’s most of their profit,” says Daugherty of Consumer Reports. Plus you rarely need to use these “protection plans” as electronics have become more reliable. “If they’re going to break, they’ll break during the original warranties,” says Daugherty. For example, just 10% of digital camera buyers needed a repair within three years, according to researchers at Consumer Reports.

THE FIX: The 90-Day Rule.
If the manufacturer’s warranty expires in just a few months, then that extended retailer warranty may be worth considering, depending on the reliability of the product and what the retailer’s warranty actually covers. Consumer Reports suggests getting an extended service warranty for Apple (APPL) computers, for example, because the tech giant only offers 90 days of free support. Products like three and four year-old computers, riding mowers and lawn tractors also need more repairs. If you think you might need more coverage down the road, Tod Marks, a senior editor at Consumer Reports, says you can sometimes buy additional protection directly from the manufacturer. “I’ve received solicitations from companies like Sears and Honda, giving me an ‘opportunity’ to continue coverage after the initial warranty expired,” says Marks.

MISTAKE: Mystery Spending
You hit the ATM five hours ago and already your cash is gone. Men are the worst at forgetting how they spent their cash. Visa (V) USA recently found men 34 and under lost close to 60 bucks a week, or a total of more than $3,000 a year. Women, meantime, lost an average $2,700 a year on miscellaneous purchases.

THE FIX: Watch For a Week
While some traditional financial experts preach keeping a strict budget and writing down monthly purchases to learn your spending habits, that’s not practical. David Bach, author of Go Green. Live Rich, says seven days of tracking should be enough monitoring. “It’s an honest snap shot of how you spend money,” says Bach. “The key is to not change the way you spend money. Don’t become a better person on the third or fourth day.” In his research, Bach has found that on average many people spend 50% more a day than they actually think they’re spending. Sites like Bach’s automaticmoneymanager.com and mint.com can help track your spending, too.

MISTAKE: Not Giving Enough To Charity.
Your housing and car payments are eating up most of your disposable income, leaving you with little to no money to donate to your favorite charities. Besides the tax benefits, giving brings good karma.

THE FIX: Donate on Autopilot.
Determine how much you can contribute weekly, monthly or annually, and then look for qualified charities on justgive.org or guidestar.com. You can have a specified amount deducted automatically every month directly through the charity, or through sites like networkforgood.org/donate and guidestar.org. Also, American Express’s (AMEX) GivingExpress program awards points for being charitable. Visit americanexpress.com/give for more information.

ANOTHER FIX: Be a Venture Capitalist.
There are a growing number of social entrepreneurship sites like kiva.org, microplace.com and villagebanking.org that link business owners in developing countries with individual lenders. However, you can’t deduct part of this charitable giving from your taxes, because it’s technically recorded as a loan. But you can earn interest, “and you get to see who you’re helping directly online,” says Bach.

5 Messy Money Mistakes and Quick Fixes
Farnoosh Torabi | MainStreet.com

Few mistakes irk MainStreet more than those made with money. Good thing many messy money mistakes can be solved pretty easily and MainStreet rounded up some capital money managing minds to tell you what to do.

MISTAKE: Loaning Dough to Your Deadbeat Friends
Out of the 800 people surveyed in the new book Isn’t It Their Turn to Pick Up the Check? authors Jeanne Fleming and Leonard Schwarz discovered more than 40% of lenders never got repaid in full from friends and family. Nearly one in three got totally stiffed. “A lot of people find themselves becoming someone else’s ATM,” says Fleming.

THE FIX: Sic Your Friend on Someone Else
The internet is packed with people willing to finance your deadbeat roommate’s latest get-rich scheme - even if his credit stinks. Help your friend set up an account on social lending sites like prosper.com and lendingclub.com, which link individual microlenders with eager borrowers, at interest rates much lower than traditional banks. If you can’t say ‘no’ put an agreement in writing, so there are no misunderstandings, says Schwarz. And for big loans, more than $500, you may want to hit up a third party intermediary like virginmoneyus.com, which helps draft a contract, set up an agreeable interest rate and facilitate the loan payments to take the pressure off your back to collect.

MISTAKE: Getting Suckered into a Store Credit Card
Sure, the 20% initial discount is tempting, but unless you can pay off your balance in full every month, don’t bother opening a store credit card. They’re notorious for their hidden late fees and higher-than-average interest rates of more than 20%. So if you don’t pay on time, “the discount can disappear,” says Carmen Wong Ulrich, author of Generation Debt. Psychologically, these cards also seem like a fake license to spend more, adds Gary Schatsky, a financial planner and co-founder of objectiveadvice.com. Just to clue you in - consumers owed more than $100 billion on these so-called limited purpose cards in 2006, according to cardtrak.com.

THE FIX: Nab a Discount Anyway, By Asking!
Face it - You just want the card for the immediate savings. So, just as you’re about to ring up a big-ticket item, ask for a discount or freebies. That’s right. Ask. “Often they’ll try to accommodate you in some way,” says Greg Daugherty, executive editor of Consumer Reports. If you’re about to buy a heavy item, like an entertainment set or a treadmill, ask for free delivery. “In some cases maybe they’ll throw in pillows if you’re buying a sofa,” adds Daugherty. For electronics and appliance stores he suggests asking if they accept competitors’ coupons. “You may get 10 or 20 percent off right there.”

MISTAKE: Feeding a Bar Tab
Consumers racked up more than $2 trillion on major credit cards last year, according to surveyors at cardata.com. That includes rounds of tequila shots. Michael Sinensky, owner of four bars in New York, including the famous Village Pourhouse, says about twice as many patrons are opening tabs these days, versus two years ago. That’s good news for his revenue stream, bad for your bank account. “When you put down a credit card you feel like you’re not spending any money,” says Sinensky. Plus, you’re forced to pay a minimum $10 to $25 at many bars when you pay with plastic, even if it’s a debit card.

THE FIX: Go One For One.
Better to carry a limited wad of cash and pay as you go. This way, says Sinensky, “you realize your wallet is getting lighter and lighter,” and you can budget. You’ll also spend less on tips this way, dropping the acceptable $1 per drink versus 20% or more on a total bill. And as Sinensky explains, the heat is on when you’re ready to finally close the tab. “A lot of people feel when you have a tab at the bar, the [bartender’s] going to notice what you tip right away.

MISTAKE: Paying For Awful Service
Just 9% of unhappy male customers ever complain, according to a new study by Technical Assistance Research Programs (TARP). “The exception is being delighted,” says Dennis Gonier, CEO of TARP Worldwide. “[People] expect bad service.”

THE FIX: Kvetch
With the right panache, you can get out of paying for subpar service and maybe even score freebies. Your food’s undercooked or it came a half hour late? “Talk to the restaurant manager right on the spot and make a stink then,” says Walter Brewster of the Better Business Bureau in New York. If that gets you nowhere, follow-up with a formal letter cc’ing the industry enforcers (e.g. the health department, the BBB) and see if that does the trick. Internet’s been down for hours? “You’re entitled to a partial refund,” says Ben Popken, editor of theconsumerist.com, a consumer advocacy blog. Same goes for most contractual services that bail on you, like your cell phone or cab. Make a phone call immediately to customer service. When possible, speak immediately with the manager or CEO in person. “You want to makes sure you’re talking to someone who can actually fix your situation,” says “Complaint Girl” Ami Woods, a marketing consultant with amiwoods.com. And finally, adds Gonier, remember to thank them ahead of time for helping you out. “Never underestimate the value of charm!”

MISTAKE: Pre-Spending
You bought a couch with your anticipated tax refund. You rang up a new plasma TV before the annual bonus arrived. Spending money before you receive it is basically a fast-track to generating more debt. Can you blame us? “We are culturally programmed to celebrate before we have our win,” says David Bach. “We’re marketed to pre-spend our money.”

THE FIX: Pay Yourself First.
It’s Bach’s tried-and-true money mantra. Automatically putting away just an hour a day of your income into a savings vehicle will come in handy as a reserve next time you’re tempted to book a trip to Hawaii with the spot bonus (that you think you’re getting).

Go to MainStreet.com for more messy money mistakes, and quick fixes, tomorrow!

Photo: Álvaro Daniel González Lamarque

Last week we explored how money grows. Next we’ll look at some ways money vanishes. The largest is consumer debt.

What is it?

Consumer debt includes all outstanding money owed for lifestyle purchases. This includes: credit card debt, car loan debt, educational loans, home mortgages, and other forms of delayed payment. The worst of these is credit card debt.

What does it do?

Consumer debt allows you to purchase what you otherwise may not be able to afford in a one-time payment. However, many find it is easy to over-extend yourself. Having too many upwardly-spiraling debts can quickly undermine your financial stability.

Credit cards are the worst offenders. Unlike other forms of consumer debt the interest rates on credit cards are higher. Debt compounds faster, and none of it is tax-deductible.

Do You Have Too Much Consumer Debt?

If you’re being harassed by credit card collection calls you already know that you’re overextended. But, creditor calls aren’t the only symptom. If you feel persistent anxiety about being able to meet your financial obligations chances are you’re teetering close to the edge.

How Do I Fix Things?

First, determine which expenses can be reduced or eliminated as well as ways to earn more. To make the fastest progress you need to reduce your outgo and increase your inflow. You may find that you need to give up certain luxuries. Short-term pain is better than long-term indebtedness.

Second, apply this money toward paying off your consumer debt. Focus your payment on your most expensive debt. You must be diligent and committed.

Third, as you pay off each debt roll your additional payments to your next debt. Repeat until all are paid. Semi-weekly, weekly, or even more frequent payments can be made online to help shave off additional interest charges.

Fourth, change your behavior. Getting in over your head with debt is often a reflection of spending mindlessly. Aim to spend less than 30% of your take-home pay on debt.

Finally: know you’re not alone. There are many groups of people here at Geezeo who have had, or currently have, problems with too much consumer debt. Work to change your situation and let our community be there to support the changes you make as you become debt-free. Good luck!

Can you Zagat your financial life?

The New York Times writer and editor Ron Lieber proposes a weekly review of financial service products. Think of it like a Zagat review of your favorite restaurant or a Times review of the latest film. Click here to read his great article, “Five Basics for Building a Solid Financial Future”.

Psst — and here’s another little something you can use. Geezeo is compiling user reviews on every financial product and service. Make sure you rank your financial products and services by logging into your Dashboard. Click on any of your accounts and tell us what you think!

So with the first wave of economic stimulus checks coming through, I am eager to see the total amount that will actually be sent to us. According to the IRS website, we should be receiving it by this Friday.

However, our family doesn’t plan on stimulating much of the economy with the check. We plan on using it to pay off a major bill. Something that was supposed to be paid off with our tax refund, but that didn’t happen due to our washer and dryer quiting on us!! (Yes, at the same time - Oh the joys of being an adult with responsibility now!)

I’ve been reading a lot of blogs and different magazine articles talking about how many are planning on following the same idea as our family - paying off a large bill/credit card debt/etc.

However, I was watching a news program the other night, CNN I believe, and it mentioned that while the government is expecting a large number of citizens to use it to pay off debt, they fully expect the economy to still be stimulated. How? They are expecting that once citizens free up debt, they will go right back to charging more because 1) it’s “available credit”, and 2) things are rising in cost (so how else will they pay for it?) I thought about it, and I agree. For the average American they are probably right.

But don’t fear, Geezeo is helping its users to redefine the average American! We have the tools to help set up budgets and track our spending so we can be better prepared for the things that might happen tomorrow. Take full advantage of the capabilities. Set some goals so that you can pay off that debt, keep it off, and have a cushion to rely on in hard times (so you really can stimulate the economy with the IRS check and a guilt free conscience!!). Share your successes with us in groups such as You Don’t Really Need It…tales of consumerism. And if you do take a step backward (which most of us do), you can always get your purchase off your chest by confessing your money sins here!!!