Fighting Fraud
By Better Business Bureau Serving Greater Cleveland – Better Business Bureau® Senior Awareness Initiative
The 2023 holiday shopping season was like no other. Family gatherings increased as pandemic fears waned and consumers contributed to “healthy holiday sales.” However, many area consumers are coming to their senses as post-holiday bills arrive and they are starting to realize that they may have overspent on their loved ones. Better Business Bureau Serving Greater Cleveland is providing the following debt tips for local consumers:
Address Current Debt – Before taking on additional expenses, address current debt. Pay smaller balances before larger ones and consolidate higher-interest balances to a lower-interest loan or credit card. While the concept of payday loans may sound enticing to some cash-strapped consumers, it is a high-risk option. Consumers should be aware of predatory lending and payday loan scams.
Create and Stick to a Budget – Create a budget for your daily and monthly expenses. Remember to include expenditures such as gas, food, rent, and other housing-related costs.
Take Advantage of Sales, Rewards, Memberships & Cash-Back Offers – Although Thanksgiving weekend traditionally sees the best holiday sales, consumers can still find a bargain on other, non-holiday days. Remember to check sales flyers, use reward points on credit cards, and check other retailers for any additional specials they may offer, such as future store credit on select purchases. Stack discounts when possible.
Use Vetted Shopping Apps to Find the Best Price & Get Rewards – Before a consumer installs any mobile app on their device, they should first do research on the company behind the app. Check BBB.org to see the company’s business rating and reviews. Some purchasing apps, such as Rakuten and Ibotta are already BBB Accredited Businesses. Consumers should read the fine details, such as payout and privacy policies, before installing any apps on their mobile devices.
Be Cautious with “Buy Now, Pay Later” & Layaway Programs – While the concept of paying for goods with a “buy now, pay later” program may sound enticing to a consumer, be aware of the fees associated with this. Interest rates can range between 0% to over 30% on a single purchase. Treat all “buy now, pay later” arrangements as a loan and be aware that credit scores can be adversely affected. As for store layaway plans, they are a similar arrangement. Layaway differs in that the store retains the goods until payment is made in full by the consumer. These plans have fallen out of favor in recent years as “buy now, pay later” plans have gained popularity.
Consider Low-Cost Alternatives – Consider making small changes to your daily routine, such as making coffee at home, dining out less, or purchasing used goods instead of new ones. Doing little alterations can make a big financial impact over the course of a year.
For more information about payday loan scams, visit BBB.org. BBB’s website also has more articles with details about cashback apps and installment payment plans. Remember to report scams to BBB.org/ScamTracker. Your report can help prevent other local consumers from becoming a victim. Questions? Reach out to your BBB at 216-241-7678 or [email protected].
