Using Social Media to Improve the Consumer Complaint Process

By: Braden Johnson 

Our social media driven culture is used to posting, sharing, Tweeting, chatting, pinning, blogging, and Skyping – with friends and strangers alike. But, in the past decade, businesses have emerged as a new player in the social media hierarchy. This has given consumers new tools for reaching out to businesses, and has created a whole new type of online customer service.

Consider an airline passenger who, on a long flight, was frustrated when the television screen in front of him was not working. From his phone, he wrote a short Twitter message to JetBlue, the airline on which he was flying, to describe the problem. Before his plane landed, representatives from JetBlue issued a personal response, apologizing for the problem and offering him a $15 credit on his next flight.

This story serves as a great example of the power of social media to reach companies. There are several advantages to this new system. First, social media platforms provide a forum where consumers and businesses can correspond directly. Neither party has to wait until the other is available, which means no waiting on hold and no missed callbacks. Not only does this make the process more convenient for consumers, it benefits businesses by simplifying the complaint resolution process and saving time. Noting these benefits, many companies have started training customer service representatives to respond to social media complaints.

Second, the consumer’s compliant — and the company’s response — are visible to millions of internet users. This creates a virtual handbook of consumer Q&A, where consumers can learn from the resolutions provided for prior customers. More importantly, it also puts pressure on companies to respond fairly to customer concerns. Observers can also see the time that elapsed between complaint and resolution. This can help customers get an idea of how long the process should take, and keeps the business accountable to its consumers for its response time. Companies who do not help their consumers in a fair and timely way risk offending their customer base.

Consumers can use this new approach with relative ease. Twitter and Facebook, the two most common social media forums for customer complaints, offer free accounts. To sign up, all the user needs to provide is a name, birthday, and an email address. After joining, consumers can use the search bar to find the company they wish to speak to, and then type a simple message. The next step is to wait, and follow any instructions that the company provides in its reply. After a few days, if no one responds, the consumer should try other contact methods like email or telephone.

Just because the process is easy does not mean it is foolproof. In fact, some consumers who have posted complaints on social media have later been sued by the company for harassment, defamation, or libel. MyConsumerTips already has a blog (link here) describing how to avoid those lawsuits, but the key takeaway is: use good judgement. Don’t lie, don’t exaggerate, and don’t be malicious. For serious complaints, the consumer may consider contacting the state attorney general’s office or the Consumer Financial Protection Bureau instead.

There are some other drawbacks to social media complaints. First, a response is not guaranteed, and it may not come in the timeline that you expect. Second, social media is a bad forum for some types of questions. Imagine Tweeting to Ikea for help putting a bookcase together. The conversation might take hundreds of back-and-forth messages, which would overrun the company’s Twitter page.

Questions which require personal information are also bad for social media. Imagine posting a question on your bank’s Facebook page, asking whether your recent foreclosure has impacted your line of credit. Not only have you broadcast your recent foreclosure to millions of strangers, the bank will probably need more information (at a minimum, your account number) in order to fully answer your question. You should never give out personal information on social media sites.

Noting the obvious benefits of social media customer service, some industry analysts believe that it will displace email and telephone as the primary means for consumer complaints. Whether or not that occurs, consumers who follow the tips outlined above may find that reaching out via social media is faster, easier, and more successful than other means. Happy Tweeting!

Handling Phone Calls With A Debt Collector

By: Andrew Marchant 

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

A Colorado Tenant’s Guide to the Warranty of Habitability

By: Elizabeth Sullivan 

What is the warranty of habitability?

A guarantee in every residential lease that the apartment or home is fit for people to live in. Colo. Rev. Stat. § 38-12-503(1).

 

What kind of conditions would make an apartment or home “uninhabitable” under the law?

The statute lists 11 specific examples of uninhabitable conditions. If an apartment or home lacks one of the following characteristics, it could be considered uninhabitable.

  • 1) Waterproofing and weather protection of the roof, exterior walls, windows, or doors;
  • 2) Plumbing and gas facilities;
  • 3) Running water and reasonable amounts of hot water;
  • 4) Functioning heat correctly installed and in good working order;
  • 5) Electrical lighting correctly installed and in good working order;
  • 6) Common areas that are reasonably clean;
  • 7) Extermination of rodents or vermin;
  • 8) Adequate garbage receptacles;
  • 9) Floors, stairways, and railings in good repair;
  • 10) Locks on exterior doors and locks or security devices on windows; and
  • 11) Compliance with building, housing, and health codes, which, if violated, would cause the home to be dangerous to the tenant

This is not an exclusive list. Other conditions that make an apartment or home unsuitable to live in could count as an uninhabitable condition. Colo. Rev. Stat. § 38-12-505.

 

Does the tenant have to maintain the property in any way?

  • First, a tenant must fulfill maintenance duties agreed to in the lease, with some exceptions.
  • Second, a tenant must maintain the premises in a clean and safe manner which means:
    • complying with building, health, and housing codes;
    • keeping the inside of the apartment or home clean and sanitary;
    • disposing of garbage in a sanitary manner;
    • using utilities, such as heat and air-conditioning, in a reasonable manner;
    • not disturbing the neighbors peaceful enjoyment of their apartment or home; and
    • notifying the landlord if the apartment or home is uninhabitable.
  • And, of course, a tenant should not destroy or damage any part of the apartment or home.

Colo. Rev. Stat. § 38-12-504.

 

Is an “uninhabitable” condition enough to hold the landlord responsible under the law?

No. There are three requirements that must be met before a tenant can hold a landlord responsible under the law:

  • 1) The premises are uninhabitable (one of the conditions listed above or something similar);
  • 2) The condition is “materially dangerous or hazardous” to the tenant; and
  • 3) The tenant gave written notice of the condition to the landlord and the landlord failed to fix the problem in a reasonable amount of time Colo. Rev. Stat. § 38-12-503(2)(a)-(c).

If these three requirements are satisfied, the landlord has “breached the warranty of habitability.” If there is an uninhabitable condition in your home, and you feel that the condition is dangerous or hazardous to you, make sure that you give your landlord written notice of that condition. You can find a sample letter here.

 

What if the tenant caused the uninhabitable condition?

When damage to the property is caused by the tenant or the tenant’s guest, the landlord has not breached the warranty of habitability. However, the landlord can still be responsible under the warranty of habitability if the tenant is a victim of domestic violence or abuse, the damage was a result of that violence, and the tenant gave the landlord written documentation of the domestic violence or abuse. Colo. Rev. Stat. § 38-12-503(4).

 

What remedies are available to tenants?

There are several remedies available to tenants, but some of the rules, such when the tenant can seek each remedy, are complicated. Tenants should read through the statute before choosing to pursue one remedy over another. The remedies include:

  • 1) Terminating the lease early;
  • 2) A court order requiring the landlord to repair the problem (this is called injunctive relief);
  • 3) Damages (such as rent reduction and other expenses); and
  • 4) Attorney fees and costs in some circumstances.

Colo. Rev. Stat. § 38-12-507.

 

Are there any exceptions?

Yes, there are exceptions. Typical residential leases covering apartments or houses are covered by the warranty of habitability. However, the warranty of habitability does not apply to residences at public or private institutions, occupancy in a hotel or motel less than 30 days, or occupancy in a yurt or hut, among many other exceptions. If you are wondering if you fall under an exception, check this list.   Colo. Rev. Stat. § 38-12-511.

Exempt Property in Chapter 7 Liquidation Bankruptcy

By: Michael Richardson 

In a traditional Chapter 7 liquidation bankruptcy, the court will gather all of the your property to eventually sell at auction. The money gathered from the auction sale is then distributed to your creditors to satisfy your debts. Once all of the auction money is disbursed, you are discharged from bankruptcy.

While the basics are straightforward, a consumer considering bankruptcy might wonder: can the court sell ALL of my property? The short answer to this question is no.

Certain property is exempt from sale at auction, and you are permitted to keep some of your property. These “exemptions” reflect an underlying policy of United States bankruptcy law –to leave every debtor with enough basic property to have a reasonable chance to successfully emerge from bankruptcy. In other words, exemptions help provide you with a fresh start.

In Colorado, the following types of property are exempt from sale, up to a certain dollar amount, in a Chapter 7 liquidation bankruptcy[1]:

  • Your home
    • Includes real property, mobile homes or manufactured homes
    • Up to $60,000 or $90,000 if occupied by an elderly (60+) or disabled person
  • Personal Property
    • Clothing up to $1,500;
    • Food and Fuel up to $600;
    • Household goods up to $3,000;
    • Jewelry up to $1,000;
    • Motor vehicles used for work up to $3,000;
    • Pictures and books up to $1,500;
    • Full amount of any federal or state earned income tax credit refund
  • Insurance Benefits
    • Includes disability benefits up to $200 per month, in addition to group life insurance policy
  • Pensions
    • Includes ERISA – qualified benefits, including IRAs
  • Tools of the Trade
    • For example: Horses, mules, wagons, carts, machinery, harness, and tools of farmer up to $25,000
    • Also includes the library of a professional up to $3,000 or stock in trade, supplies, fixtures, machines, tools, maps, equipment, books and business materials up to $10,000
    • Also includes livestock and poultry of farmer up to $3,000

A consumer might wonder what happens if she owns a piece of property that falls into one of these exemption categories, but the property is worth more than the dollar limit of the exemption. For example, let’s say you own an item of jewelry that is valued at $1,500, but Colorado law allows an exemption for jewelry only up to $1,000. In that case, the jewelry would be sold at auction for $1,500. The debtor would receive $1,000 from the sale, and the remaining $500 would be distributed to the creditors.

In some situations, the person or company who sold you the property may not allow you to claim an exemption in bankruptcy. For example, let’s say someone named Alice has filed for bankruptcy. Two years before filing for bankruptcy, Alice bought a car from a dealership. In exchange for providing financing for the car, Alice agreed to allow the dealership to take back the car if she did not make her monthly car payments. With this type of agreement, Alice would not be able to fully take advantage of the exemption available to her.

Finally, there is also something in the bankruptcy context called “exemption planning.” Let’s say a consumer, Alice, knows that she will file for bankruptcy within the next few weeks. Aware of the exemptions available to her, Alice converts non-exempt property into her homestead in order to maximize the amount of exemptions available. While some courts have found this type of conduct permissible, Alice walks a fine line in these situations. If a court finds that Alice has funneled assets into exempt property with the intent to defraud her creditors, the court may completely prohibit Alice from discharging any of her debt, or even dismiss her case entirely. For this and other reasons, it is important to consult an attorney if you are considering filing for bankruptcy.

For those who are considering Chapter 7 liquidation bankruptcy, exemptions will play an important role. It is true that much of your property will be sold at auction if you file for bankruptcy. However, the court cannot take everything you own. Exemptions provide a consumer with the first step towards a fresh start.

 

[1] This is not an exhaustive list. For the full list of exemptions under Colorado law, see Colo. Rev. Stat. §13-54-102(1).

Making and Saving Money in the Sharing Economy, Part II

By: Otto Hanson 

This article is the second in a two-part series on this topic.  To see the whole story, please start with Making and Saving Money in the Sharing Economy, Part I.

Airbnb.com

What is it? A web and smart phone app that connects people with extra sleeping quarters to those in need of a place to sleep for short periods. On Airbnb.com you can rent anything from a couch to a castle, from a basement to a bedroom.

What should I look out for? Like Uber and Lyft, make sure that your insurance provider knows what you’re up to and that your renter’s or home-owner’s insurance policy covers you and your guests. Airbnb does offer a $1 million host guarantee, which protects hosts from theft or damage to property caused by a guest. Also like Uber and Lyft, always pay attention to reviews left by others. Also, Airbnb will verify user’s IDs, making sure that a person is who they say they are and that they can be located if needed. Always look for the “Verified ID” badge on a user’s profile.

Finally, as a host, you should always pay attention to local laws and regulations regarding zoning, occupancy restrictions, licensing requirements and taxes. Many municipalities forbid short-term rentals, others require that hosts collect and remit lodging taxes to city governments.  In Boulder, CO, for example, short term rentals in residential units may violate zoning restrictions, licensing requirements, and short term lodging taxation requirements.  However, for the time being, the City of Boulder has publicly announced that it will not be enforcing these regulations against short term rentals.   Always call you local government office to find out if you can offer short term rentals from your home.

 

DogVacay.com

What is it? A platform connecting people with pets to people willing to look after pets.

What do I need to become a pet-sitter? Smart phone or camera + computer; love of pets; and a home that lets you take in pets or transportation to and from the pet-owner’s home (some pet owners prefer their pets stay at home).

How much are people making? The average nightly rate per pet is around $30. When you’re starting out on any sharing economy platform, it’s usually wise to offer low prices until you’ve been reviewed by a few people. Once you’ve got some reviews you can always raise your prices!

 

TaskRabbit.com

What is it? A platform connecting people who need odd jobs done to people who can do those jobs. This is especially exciting in Boulder / Denver because very few “taskers” are listed.

What do I need to become a tasker? Access to the website or smart phone app, time to do tasks, a relatively clean background check (TaskRabbit.com requires this) and a client-focused attitude.

How much are people making? The average hourly rate is around $25, but varies greatly depending on the type of task and the experience / reviews of the tasker.

 

RelayRides.com

What is it? A platform connecting people who need to rent a car to people who are willing to rent out their car. This is also exciting in Boulder because we have a large volume of tourists visiting the city, and very few cars available on the site. Want to rent out your bike instead? Try Spinlister.com.

What do I need to become a tasker? Access to the website or smart phone app, a reliable car, and a strong insurance policy. Note that RelayRides may insure your vehicle for certain liabilities, and renters have the option of purchasing additional coverage through RelayRides.

How much are people making? Depending on the make, model, and condition of your car, you could rent it out for anywhere from $15 to a few hundred dollars a day.

 

General notes on becoming a provider on sharing platforms

When you become a provider of any type of resource, product, or service, you essentially become a business owner. Your customers will have basic expectations about the quality of the product or service they receive. Those expectations may be based on what you’ve promised on your profile or listing, or based on general, reasonable expectations in the field. No matter where the expectations come from, your success will depend on meeting and exceeding customer’s expectations.

Customers will leave reviews about their experience with you. If those reviews are positive, you are likely to get more business, if they’re negative, you may never get another customer on that platform. You cannot simply delete a profile and start from scratch – once you start on any of these platforms, you’re stuck with any reviews you get for life.

Next, as someone providing a product or service in exchange for money, you have a heightened responsibility to make sure that what you’re providing is safe. Always think of safety first, and never put your customer or their property in dangerous situations.

Finally, always be sure that the laws in your jurisdiction do not forbid whatever you’re doing, and remember that you will probably have to pay taxes on any income.

The Printer Paradox

By: James Wilson 

Individuals are well intentioned in wanting to save money, but under certain conditions these objectives actually have the effect of costing more in the long run. This is the classic printer paradox, as described below.

Jeff needs a new printer and wants to get the best value for his dollar. He goes to the local office supply store where he finds Printer A and Printer B. Both printers have the same features and functionality, but Printer A is $30 and Printer B is $50.  Presented with the opportunity to buy essentially the same printer for $20 less, Jeff happily purchases Printer A and heads home.

Over the next six months Jeff has to purchase three ink cartridges to meet the printing needs out of his home office. Each ink cartridge costs $20, bringing Jeff’s six-month total to $90. What Jeff does not realize is that cartridges for Printer B are only $10 each. If Jeff had bought Printer B with three cartridges he would have only spent $80 over the same six-month period.

Consumer protection laws do not tell companies how they must price their products and ancillary services, but they do try to combat information asymmetry—the same type of situation that gives rise to the printer paradox. If Jeff took a little more time, and used the information in the marketplace before buying Printer A, he may have bought Printer B instead. Laws like the Colorado Consumer Protection Act (CCPA) work to prevent misrepresentations in sales and marketing so that the information you use to purchase goods and services helps you make sound decisions.

There are a range of services that help you ascertain the information you need. Typically most consumer agreements have, by law, specific provisions addressing everything from termination rights to collection of payments. Even though products or services may be similar in nature, the specific requirements for each may be different. For example, in Colorado you generally have a minimum three-day period to rescind a new gym membership. A buyer’s club membership, however, has only a minimum one-day cancellation period. Instead of trying to memorize the various requirements for the different products and services you may buy, you should utilize the following resources:

 

Boulder County Community Services (BCCS) – www.bouldercountyhc.org

BCCS has a great team of individuals that specialize in individual counseling and workshops. Topics that they assist with include personal finance, foreclosure information, housing education, and more. Free services like those offered at BCCS should be a top priority when making the large financial decisions in your life. At their counseling appointments and workshops you will learn about properly budgeting the purchase of your home, reducing your debt, and what to look out for before signing up for that next credit card.

 

Department of Regulatory Agencies – www.dora.colorado.gov

DORA is a dedicated agency in Colorado charged with curbing deceptive trade practices and promoting fairness in the marketplace. Whenever you hire a service provider in Colorado who is required to be licensed by the state (e.g. plumber, barber, insurance agent, etc.) you should double check to make sure that their license is current, and review any disciplinary history. Contracting with current licensees with a clean history will better protect you down the road if something goes wrong.

In addition to verifying licensure, the AskDORA feature enables you to ask questions about consumer protection questions you may have. If you need to know more about financial services for example, this is a great place to start.

 

Colorado Attorney General Consumer Protection Section – www.coloradoattorneygeneral.gov

The Consumer Protection Section of the AG’s office helps enforce laws like the CCPA. If you have a complaint regarding a consumer protection issue, this is the office to contact. In addition to being an outlet to field complaints, their website has a long list of resources relating to specific consumer protection issues. In addition to a “Consumer Questions” section—which offers answers to common questions the office receives—the Consumer Resource Guide offers information related to specific topics, including automobiles, scams, credit and lending, health issues, and more. The Consumer Resource guide can be accessed at www.coloradoattorneygeneral.gov/initiatives/consumer_resource_guide.

 

As always, make sure you use consumer protection laws to your advantage by gathering the information you need to continue making informed decisions. If there is something you do not know, but would help you feel confident about your choices, start with the resources listed above.

Beware when looking up advice online

By: Sierra Moller 

In today’s digital age, there are hundreds of thousands of articles on financial advice. A quick Google search of “credit repair” or “debt consolidation” will populate hundreds of millions search results from blogs all over the Internet. In all the noise of available advice on the Internet, how do you know what resources to trust?

In my quest to assemble great consumer tips and tricks on debt consolidation and credit repair, I came across many sites that had content that seemed like good advice, but also seemed like it was trying to guide me towards a particular product or service.

As it turns out, for every well-intentioned article available on the Internet, there are dozens of articles geared towards advertising a particular product. This form of marketing is called native advertising, and it’s rampant throughout the Internet today. Native advertising is the concept that corporations pay to have content about their products included in articles that align with the publication in style and tone, making it very difficult for readers to spot. [1]

Financial websites such as Forbes, have been participating in native advertising for several years. For instance, Forbes has a program called BrandVoice, which allows marketers to produce articles for Forbes.com and the magazine, which often resemble the look and tone of regular articles. [2] The articles contain general advice, but often also embed a “plug” for a particular brand or service. To their credit, Forbes maintains a staff of sponsored content specialists to work with the advertisers to ensure the article remains valuable to readers.

Forbes is not alone. In fact, other prominent financial websites use native advertising. For example, Fortune.com and Money.com work with Impact Partnership, a marketing organization, to pair advice on retirement and financial planning with native content from financial advisors across the country.[3]

Native advertising works. In fact, it might work too well. Click-through rates tend to be much higher than typical advertisements and readers are usually more engaged in the content. However, it can be problematic when readers, who are reading the articles for advice, rely on those articles, not realizing it was an advertisement.

This practice has garnered both positive and negative attention. On the one hand, the practice has arguably created a whole new business model for companies such as Forbes by creating new sources of revenue. On the other hand, consumer protection organizations call the practice is deceptive to consumers because readers may not always realize when the content is an ad. [4]

The practice has also raised eyebrows at the Federal Trade Commission. The FTC is currently considering implementing regulatory measures on native ads, including plans to monitor the market to ensure that native advertising is being used in a manner than benefits consumers.[5]

For now, the FTC has not issued formal guidance on requiring disclosure, but there are rumors that it plans to do so. Additionally, industry organizations such the Interactive advertising bureau (IAB) has issued their own warnings to advertisers. They suggest that brands respect consumers and clearly label sponsored content as advertising. [6]

Until the FTC issues more rules and guidance on native ads, here are a few commonly accepted labels to help spot native ads.

  • “Advertisement” or “AD“ (Google, YouTube)
  • “Promoted” or “Promoted by [brand]”
  • “Sponsored” or “Sponsored by [brand]” or “Sponsored Content”
  • “Presented by [brand]” and “Featured Partner”

Lastly, its important to note that the advice provided in sponsored articles is not necessarily wrong or even bad advice. In fact, most of the advice in these articles is legitimate. But it is important that when your searching for advice on the internet, you use sources of information that you trust. Or at the very least, you should know when your reading an article that is intended to be an advertisement or promotion for a product. Be on the lookout for content in articles that promotes one specific product or service over others.

[1] http://www.wordstream.com/blog/ws/2014/07/07/

[2] http://blogs.wsj.com/cmo/2015/01/04/forbes-takes-native-ads-to-new-level-with-att-sponsored-cover/

[3] http://www.prnewswire.com/news-releases/impact-partnership-expands-relationship-with-fortune-to-include-money-fortune-knowledge-group-300022824.html

[4] http://www.bloomberg.com/bw/articles/2014-08-05/ad-industry-execs-weigh-in-on-john-olivers-native-advertising-takedown

[5] https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-revised-endorsement-guides-what-people-are-asking

[6] http://www.iab.net/iablog/2015/01/what-happens-if-the-ftc-provides-native-advertising-guidance-in-2015.html

 

Buddy System For Debt Freedom

By: Sierra Moller 

A while back my friends and I were talking about our debt problems. In today’s world, it seems like everybody has them. But each of us had different kinds of debt problems. One friend had credit card debt, another had an expensive mortgage, another had a car loan, and I had student loans. It is an exciting time in our lives, but these money surprises add up quick.

Buying your first home, moving to a new city, getting an education or buying a car are all GOOD things (in theory) for your financial future, but only if you can manage to stay financially floating. Whether we like it or not, these exciting events require establishing and maintaining good credit.

None of us had a clue how to get on track, so we decided to buddy up to help each other save. After all, its no fun when you feel everyone is out having fun and you’re stuck at home because you can’t afford to enjoy an evening out with friends.

Turns out, research by the National Endowment for Financial Education finds [i] that having a financial buddy is a great tool to help you stay on track.

“A financial buddy can be anyone: a spouse, a trusted friend, a family member or a co-worker, and it doesn’t have to be someone with whom you share all of your financial information,” says Paul Golden, spokesperson for NEFE. “It is similar to having a workout buddy. You want someone to help you stay the course, reach short- and long-term goals and remember that you are not alone. And if you both have similar goals, you can share your respective struggles and triumphs along the way.”[ii]

It makes sense. If you have a few friends that all decide to pay off their debt and hold each other accountable together, suddenly, it becomes a lot easier to find new ways of having fun that are affordable. Free entertainment is typically the best way to get over your debt-paying blues.

Here are a few fun, money saving ideas to do with friends:

  1. Hang out at the park. Throwing around a frisbee or a football is a great way to spend an afternoon with friends.
  2. Go on a hike. Lucky for my friends and I, we have an unlimited number of nearby trails to explore. Check out Trail Finder to find an good place to hike near you.
  3. Game night. We started this a few years ago and take turns hosting it at each other’s house.
  4. Free tours. Breweries, the Candy Factory, Celestial Seasonings Tea Factory and more. Colorado has many fun free tours to take.
  5. Attend Free Venue Days. These events require more planning, but give you a chance to score free entry to some of the best local museums, zoos and botanic gardens around.
  6. Catch a flick at a dollar theatre. If your town doesn’t have a dollar theatre, you can also rent movies from RedBox.
  7. Get Crafty. There are thousands of cool d0-it-yourself ideas online that are really fun to do with friends such as pumpkin carving, quilting, origami, woodworking and more.

It is also nice to have the emotional support for when things get tough. A financial buddy can be an important asset when you face life’s inevitable misfortunes. During these hard times, a financial buddy can act as both your cheerleader and coach, offering support and encouragement.

When faced with difficult choices, people tend to act- well human. That means we often don’t make the best decisions, which usually leads to further troubles down the road. A good financial buddy can help you remind you of your financial goals, and help you make smart choices.

For example, a good financial buddy could go with you to credit counseling. Credit counseling is a great place to start, and is often free. Using experts will help you get qualified, and personalized financial advice. A credit counselor can help you make a budget, develop a savings strategy, and even compare home or auto loans.

The point is, there is no easy route to financial freedom, and no road-trip is ever fun if you’re doing it alone.

[i][ii] http://www.nefe.org/press-room/news/make-resolutions-stick-with-a-financial-buddy.aspx

Making and Saving Money in the Sharing Economy, Part I

By: Otto Hanson

On a planet with rapid growing population and dwindling natural resources, sharing is one of the best and most economical ways to reduce our impact on the environment.  Whether it’s a power drill, a car, a home, or a buck, sharing with strangers can be difficult, and certain safety, transparency, payment processing and review mechanisms must be developed  in order for people to trust sharing with strangers.  Luckily, companies and non-profits are sprouting up all over the globe with crafty, effective platforms designed to enable people to safely share resources with each other.

This two part blog post is designed to introduce people to a few opportunities to get into the sharing economy.  On each of the mentioned platforms, a smart plan and a little dedication should yield cost savings or generate income, depending on whether you choose to consume or provide on the platform.

Before getting into the platforms, a few words of caution.  The author of these posts is not an attorney, and nothing contained herein should be taken as legal advice.   Some of the services provided on the listed platforms are heavily regulated.  If you choose to become a host on Airbnb.com or a driver on Uber or Lyft, for example, you should consult an attorney to make sure you’re aware of relevant laws, as well as any tax, insurance, and licensing requirements.

The following is a sample list of some opportunities to save or make money in the sharing economy.  The first item is specific to Boulder and Denver, CO, but all the others are available nationally (and many of them internationally).

B-Cycle

What is it?  A non-profit bike-sharing program that lets people borrow red bikes all over Boulder and Denver.  An annual membership lets you borrow bikes from any station and drop them off at any station for free, up to thirty minutes at a time (60 minutes for subsidized pass holders in Denver only).

How do I sign up?   Qualified low-income individuals in Denver County can get the Subsidized Annual Plus Access Pass for $10 by calling Wendy at 303-825-3325.  All others should visit the Denver B-Cycle webpage or the Boulder B-Cycle webpage.  Regrettably, Boulder B-Cycle does not currently have a subsidized program, though as of March, 2015, they expected to have one in place soon.

What do I need to sign up?  To sign up for the subsidized B-cycle pass you’ll need to verify that you receive TANF, Snap benefits, rental assistance, or are of a qualifying income level.  A credit card is typically required to sign up, but the Denver B-cycle program has offered to do their best to work with clients without access to a credit card.

What should I look out for?  Overage charges!  In Boulder each additional 30-minute period after the initial free 30 minutes costs $3.  In Denver the first 60 minutes are free (subsidized pass holders only), but each 30-minute period thereafter is $4.  Most importantly, don’t lose a bike. Replacing it could cost $1200.

Uber and Lyft

What are they? Smart phone-based apps that let people who need rides connect with people who are willing to give rides. In Boulder and Denver these services can be cheaper and faster than traditional taxi services.

What should I look out for? As a provider (driver) on either or both of these platforms, you should be sure first and foremost that your insurance provider will cover you AND your passengers in the event of an accident of any type. The moment you take paying passengers into your car you enter into a world of heightened liability – make sure your insurance policy knows you’re taking paying customers and will protect you in an accident.

As a consumer (passenger) on Uber or Lyft, you should always check to make sure your driver is experienced and has a positive rating on the platform. Inexperienced drivers or drivers with negative reviews should be avoided. Finally, you should look out for surge pricing.

Don’t miss information on more platforms, and general guidance on becoming a provider on any sharing economy platform, on Making and Saving Money in the Sharing Economy, Part II.

Finally, an App for that. My review of Mint.com

By: Sierra Moller

Today, there seems to be an app for everything. And nearly every app is designed to get you to spend money. But are there apps that will truly help me save money?

Mint.com is a simple app that allows you to link all of your accounts to one easy-to-use platform. Its free to signup and only takes a few minutes to link your accounts.

Please note, you must already have online banking set up with your bank in order to use the app. Therefore, if you don’t have online banking already set-up, you will need to go to your bank to set up an online account with your bank. Mint.com works by adding your bank accounts onto their platform to present your financial information in a slick web-interface, complete with graphs and charts.

The app itself is fun, intuitive, and easy to understand. The service is particularly useful for budgeting, creating goals, and looking at all your financial accounts in one place.

As previously mentioned, it requires linking your bank accounts to the app. I loaded up all my debt accounts first so I could capture how much I actually owe all in one place. It recognized my credit card and student loan accounts instantly. However, it didn’t recognize all of my accounts immediately. For instance, it took 24 hours to recognize one of my accounts from a local bank. In fact, depending on your bank, you may not be able to link all of your accounts. That said, mint.com recognized most of my major accounts so when I was finished, I did feel like it accurately reflected my net worth.

After linking my accounts, I was able to look over all my recent transactions and categorize my spending habits. Mint.com initially auto-categorizes your transactions. Most of them are correct, but there were also a lot of transaction that were mislabeled that I had to re-categorize. It was a little inconvenient at first, but once I adjusted a transaction to a different category, mint.com saved it and automatically remembered it for all future transactions. For example, it labeled my parking meter charges as “other” at first, but then remembered to categorize it as “transportation expense” later.

After three weeks of using the app, I quickly realized that I was spending money at restaurants way more each month than I realized. So I tried out mint.com weekly summaries via email. I normally hate emails from apps, but I thought a weekly email would reveal more about what I was buying each week closer to when I purchased it, so I would be more likely to remember.

Truthfully, it was about as useful as most email alerts. I only really checked it when I had the time, and if I was busy, I just deleted the email before reading it. I think if I checked my mint.com account before I bought every meal I would have resisted spending more. But who has the time? I’m usually grabbing lunch because I’m in a hurry and on the go. Therefore the email feature didn’t stop me from making purchases, but it did help me see what I was buying and how much. After a few weeks of using the email feature, I did notice that I started packing my lunch more, and I was more deliberate about the price of my lunch when I was purchasing my lunch on the go.

Another useful feature is the alert function. You can set it up either with your phone or via email for every late fee, bill reminder, rate change, or when you go over budget on a category. I used this function to alert me when I would go over budget on eating out, and I found this function much more useful to control my spending then the weekly email. The reminders for bill due dates was also a nice feature that I highly recommend.

Lastly, mint.com has a credit monitoring function that I found useful. Mint.com allows you to view and monitor your credit score, payment history, errors, and account usage. I was hesitant at first to enter my credit information, but after checking their terms of service, I opted to enter my info.

Remember when using mint.com the company makes money by acting as a lead generator for other financial services. Which means that the company makes money by recommending various financial services, which they get a referral fee for every customer that signs up. Therefore be on the lookout of when the site is directing you to a third party service, as those services usually cost money.

All in all, I find mint.com a great budgeting tool and I recommend it to those looking to get their finances back on track.