Vacation Planning 101

For me, vacations are the icing of life. You don’t have to have one—it’s not a “need” but they certainly are a delicious way to spend your time.

Now, we’ve all had vacations that didn’t turn out so well—hotel wasn’t what you expected, choice of location left something to be desired or rental car charged more than you got the quote for—while all consumer purchases should be carefully researched, I would argue that choosing/planning a vacation is one of the consumer choices that absolutely can not be done with research. Not only is it your money at stake, it’s your precious time and quality of life.

If you plan to book your travel yourself versus using a travel agency, start researching possible locations by looking at general websites--just do a search on Travel Tips and you’ll have get a ton of resources--narrow it down to a type of vacation—beach travel or city; an area of world you want to see—Europe, South America—or an activity that you love to do—ski or hike. Make a list of what’s important on the vacation—to everyone traveling—it may be that some want to relax and others are dying to be on the go. Once you have some focus, check review websites—keep the reviews in perspective however, you don’t know if hotel staff are leaving them or really individual consumers. Decide how you will get to your location and where you want to stay—is a suite critical since you have a large family or is a bed and breakfast perfect for you?

Additional Tips:
• Check prices on several different websites and then call the airline/car rental company/hotel to see which price is the best.
• Use those points you have from credit cards.
• Try to find a car rental location away from the airport—these can be dramatically less costly.
• Compare one way and round trip travel--they are often very different prices.
• Be careful when purchasing—there generally is a “No Refund” policy on airfare once you have purchased that ticket.
• Decide if you want to plan out your activities before you go or are fine with planning once you get there. Either way, do some checking around online to see what the options are and if there are any online coupons.
• Always check the US State Dept’s travel alert website if you are traveling out of the US.
• Be sure to call right before you leave to confirm the travel and hotel.

For more tips, see the FTC’s webpage on travel tips.

For tips of choosing a travel agency for planning your vacation and protecting your Identity while traveling, check back soon.

Instant Tax Refunds--but at what cost?

Tax time is approaching. Are you hoping for a refund to pay off those holiday bills and thinking of going to a tax preparation company who offers “Instant Refunds”. Why wait to get your tax refund when you can get it now?

While it sounds good to get your tax refund instantly, consumers need to be aware of the fees involved. Basically, the company is issuing you a loan for the amount of your anticipated refund and your refund goes to them to pay off this loan. Not only will you pay the fee for doing your taxes but if you sign up to receive your money instantly, you will generally pay $100 or more for this convenience.

For example on a typical $1500 tax refund, one tax preparation firm charges $60 to file the federal form, $15 to file the state form, $64 loan fee and $24 for getting your money now. This means you would be paying $75 for them to fill out the forms, which are fairly easy, and you could do on your own or use the free Volunteer Income Tax Assistance (VITA) services in your community. It also means that you pay $88 for the convenience of having your money now—that’s 6% of your refund. If you waited the usual 8-10 days that $88 would be in your pocket.

Also, many of the tax preparation companies are partnering with other businesses, such as car dealers, rent to own centers, even mortgage companies. Before agreeing to have your refund used to buy a car or other products, be sure you find out how much that privilege is going to cost you—it makes better financial sense to get your refund on your own and negotiate for whatever product you want without the issue of your refund muddying the waters.

For more information, see FDIC Tips and National Consumer Law Center’s Tips.

New Years Resolution--Check Your Credit Report!

Start the New Year off right—get a copy of your credit report. It’s free and easy. Your credit report contains information about how you have handled credit, such as loans or credit card accounts, as well any bankruptcies, tax liens or monetary judgments issued against you.

Supervision Equals Safety This Winter Season

The first day of winter—are you enjoying the beautiful snow outside? From sledding to skiing, snowmobiling to ice skating, children find lots to do when the snow starts to fall. Be sure that this is a wonderful, active and fun time with your kids—check these tips to make sure it’s a safe one as well:

Holiday Shopping

Tis the Season—Holiday shopping is about showing someone you care about them by shopping for that perfect gift for them. While you won’t have problems with most purchases, there are some important thinks you need to know before heading out.