Storage lockers: Stuff to save and sell
June 30, 2008
I did not realize how much is going on in the lives of many Americans regarding storage lockers. Not that I necessarily should have been thinking about storage lockers.
For a short time I rented a storage locker to house my possessions. The lease on one apartment was up. I was planning on moving out of the area and didn’t want to renew, so I temporarily moved back in with my parents. Once I got a new job and apartment I got my stuff and stopped paying for storage.
I had assumed this was how storage worked for most people. You’re in some sort of transition and need a temporary place to keep your essential possessions.
Apparently this isn’t always the case.
There are people out there who are paying for storage simply because they have so much “stuff” that they don’t know what to do with it all. I know one of these people. He’s in his 30s and hanging on to toys and art projects from elementary school — along with a ton of other stuff he’s collected over the years. Most of it could go to the Goodwill or the trash bin.
M.P. Dunleavy addresses this topic in her latest article. It’s interesting to look at some of the numbers she cites as far as how much the storage locker business has expanded in the past couple of decades. It seems apparent that many of us simply have too much stuff.
(I will admit that I have too much stuff, and I’m trying to reduce the amount of unnecessary things I’m cramming into my home. I’m also not spending money every month just to store my things, which is important to note in these tough economic times.)
Having too much isn’t the only reason people are turning to storage.
A while ago I wrote about people selling their possessions in order to pay the bills and put gas in their cars. Yet another trend is emerging from the subprime mortgage meltdown and all-around tougher financial times: Storage auctions.
The New York Times ran this story about the increasing frequency of auctions at storage facilities. The auctions are held by the facility after the unit’s renter is delinquent on his or her payments for a certain period of time.
Bidders get barely a glimpse into the storage unit before they place their bids. Only after someone wins the bid do they get to find out exactly what’s inside.
For people who put their items into storage after a foreclosure, I would imagine it would be particularly difficult to see what amounts to nearly all of your possessions auctioned off, often for a minimal price.
Some people have even been found illegally living in their self-storage units after losing their homes.
On the flip side, some people are turning another’s misfortune into profit. Many bidders wade through their new items and resell them at flea markets or on online auction sites.
Do you pay every month to store “stuff?” What do you think about self-storage auctions? Have you ever attended this type of an auction? Have you ever had your possessions sold?
Pets feel the pinch of foreclosure
June 27, 2008
Foreclosures and rising prices aren’t just taking a toll on people. Pets are feeling the pinch, too.
Shelters across the country are overflowing with pets that were either: a) abandoned and left on their own when their owners lost their homes; b) given to the shelters by owners who lost their homes; c) given to shelters by people who simply can’t afford to care for them anymore.
Many people who must move are left trying to decide what to do with their pets. USA Today wrote about this problem.
Some pet owners are apparently afraid putting their animals, especially older animals, in a shelter will lead to their being euthanized. Instead these well-intentioned, if not misguided, people are leaving their pets in abandoned houses with food and water, or they are turning their pets loose. The USA Today story explains the problems with these options, both of which end up being worse than a shelter.
These stories in the Atlanta Journal Constitution and the New York Times also address the problem of homeless pets.
Some people simply can’t afford to care for their pets. Other people are renting homes or apartments and aren’t allowed to keep their furry friends.
Shelters are overflowing with pets. Many pets are being euthanized because shelters have too many animals to care for and no other option. Some of the stories of the pets, and their families, are heartbreaking. It’s bad enough that people have lost their homes, but then they have to give up pets that they regard as family members.
I’m asking myself what can be done about this situation.
If you are thinking getting a pet, first and foremost look at your budget and make sure you can afford it. Pets can be walking money pits. Make sure you not only have the financial resources for the initial costs and food every month, but also for any emergencies that may arise.
If you decide that you can comfortably afford a pet, consider adopting a pet from a shelter.
When I decided to get a cat several years ago I thought about getting a pure bred cat. Then I saw a Humane Society kitten that I couldn’t resist. He’s a little mischief-maker, but he’s a wonderful and entertaining member of our household. And I feel good knowing that I provided a home for an animal in need.
Check out shelters in your area and see if there’s a future member of your family just waiting for a home.
Oh, I should add one important note for anyone considering a pet … Please make sure that the pet you choose fits with your lifestyle. Too many pets also end up in shelters because someone purchased a particular breed of animal on a whim without researching what might fit in best with their family. Then when the dog is snappish or the cat scratches furniture, it ends up right back in the shelter.
Beware of promises to repair your credit
June 26, 2008
This week I came across a web site for a company that claims to be a “credit repair agency.”
This term immediately sent an image of little, red flags streaming across my brain. As I read the company’s web site, the images of red flags were accompanied by the screaming sound of warning bells.
This company promises to repair your credit for a fee, though they don’t disclose the amount of the fee on their web site. The company claims it can increase your credit score by 60 to 125 points within six months. They also claim that they can remove anything from your credit report including bankruptcies and charge-offs. Finally, they claim the only reason people don’t know about this is because the credit reporting bureaus don’t want you to know.
Here is a very important thing to understand about the claims this company and others like it make: THEY ARE NOT TRUE!!!
No one, absolutely no one, can remove legitimate items from your credit report. If you have an account in charge-off status, it will remain on your credit report for seven years. If you settled an account, that will remain on your credit report for seven years. If you filed for bankruptcy it will remain on your credit report for 10 years. Period. End of story.
If a company claims it can make negative items disappear they are either not telling the truth or engaging in an illegal practice.
If you have negative items on your credit report that are a mistake, you can have them corrected on your own. If there are items that should be removed from your credit report because the statute of limitations has past, you can have those removed on your own. You don’t need to pay a third party to do it for you.
You are entitled to a free copy of your credit report from each of the three credit reporting bureaus each year. You can get this report by visiting www.annualcreditreport.com.
If you see any errors, there will be directions on the web site to guide you through the process to correct the errors. You can also write to the credit reporting bureau requesting the incorrect or expired information be removed.
The only way to increase your credit score is to pay your bills on time, develop a positive credit history and wait for legitimate negative items to drop from your credit report.
If you are still considering doing business with a company that offers credit repair, do your homework. Check the company on the Better Business Bureau’s web site. I found one law firm that claims to specialize in credit repair. A quick visit to www.bbb.org showed the firm had 293 complaints filed against it in the past 36 months.
In addition to the BBB, check with your state attorney general’s office and the Federal Trade Commission. You can check out companies and look into the FTC operation known as “Operation No Credit” that is targeting agencies making fraudulent claims.
When it comes to matters of finance in general, make sure you know who you’re dealing with and that all terms and fees are disclosed up front.
If you would like even more information about the IRS’s position regarding credit repair and credit counseling agencies, click here.
Watch out for delivery surcharges
June 24, 2008
If you’re ordering anything that requires a delivery to your home or office, you should keep an eye out for extra charges to cover the cost of gas.
These extra charges are often referred to as a “fuel surcharge” or an “energy surcharge.” Other businesses may simple call it a “delivery fee.”
Whatever the fee is called, make sure you are aware of it before you order a product.
I first noticed a “delivery fee” attached to my pizza order nearly a year ago when the cost of gas first started to climb. While doing some research about the fee, I was told by one local pizza shop owner that it wasn’t just the cost of gas to get the pizza to my house. The cost to the restaurant to have the ingredients brought in was increasing, too.
And so it goes, the cost is passed down from one customer to the next until it ends up in your final tab for that pepperoni pizza.
A year later — with gas at $4 a gallon — more and more delivery fees, and costlier delivery fees, are being tacked on to a multitude of services including flower deliveries, food deliveries and the shipping of online orders.
In some cases the fees are not disclosed and can lead to sticker shock for an unsuspecting customer. Pennsylvania Attorney General Tom Corbett found this to be a large enough concern that he issued a warning for consumers to be on the lookout for undisclosed surcharges. You can read that warning here.
You can also read this Washington Post article which talks about the increase in delivery fees. The article also mentions some cruise lines that ended up refunding money to customers who were filled for fuel charges after booking their cruises.
The key is to be aware of what you’re paying and how much you’re paying for delivery charges so you can make an informed decision about whether or not the delivery price is worth the service you’re getting.
Reduce discretionary spending in your budget
June 20, 2008
Money is staring to get tight for a lot of people right now as costs continue to climb. I’ve already written about ways to save money by clipping coupons, going green and dollar store shopping.
Now I’m going to suggest evaluating your spending on things that you may have an option to scale back on or eliminate from your budget.
How much are you spending on cable television or a satellite dish each month? Consider reducing your package or doing away with cable or satellite all together.
Are you paying for mobile phones and a home phone? Are you using both phones? If you have a home phone that you haven’t picked up in months, you may want to consider cancelling the service. Also, see if your mobile phone plan fits your phone usage. Sometimes increasing your package can actually save you money. If you have a plan that allows for 400 minutes of anytime talk, and you’re using 600, you’re probably spending a lot on overage fees. Adjust your plan or reduce the amount of time you talk during peak hours.
You could also look at bundling your television, internet and phone services with one provider. This can sometimes be less expensive than paying for each service individually. One thing I would caution you to do is to find out if the price you are given is an introductory rate. Some services offer very low rates to encourage people to sign up for the bundle, but the cost increases after a certain period of time. If you are being given an introductory rate, make certain you know what the normal rate will be.
Review your insurance plan. You absolutely want to make sure you have adequate coverage, but double check to make sure you are not over-insured. Several years ago while reviewing my car insurance policy, it came to light that I was over-insured. Making a few changes knocked about $150 off of my plan for the year.
Look over your subscriptions and memberships. Ask yourself if you’re really getting something out of them. Why bother subscribing to a magazine that you barely read or paying for a gym membership if you hardly ever go.
If finances are really tight, it’s more important to pay your electric bill or buy groceries than it is to pay for satellite television or a subscription to “Men’s Health” magazine.
These are just some ideas of ways you can save. Sit down and review all of your expenditures and see what things you can eliminate from your budget.
And remember, these cuts don’t necessarily have to be permanent. You can always add luxuries back into your budget when your financial situation improves.
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