Password Incorrect: Wait…What Just Happened Here?

I received that message again just the other day: Password Incorrect. 

I don’t know about you, but for a moment that message kind of locks me up.  Some passwords are easy to remember as I use them frequently.  Others, not so much.  Sometimes my mind is on auto-pilot and I mistakenly enter another password I frequently use and it does not work.  When that happens, and I cannot recall the right one (brain lock?), I usually fumble around a bit before I find the right one.

Remembering passwords has become even harder in the past few years as companies have implemented even more complex strategies to create ‘hack-proof’ security for customer accounts.  The use of special characters, numbers, upper case, lower case, no use of any prime number (kidding on this last one), and so on, make remembering them all virtually impossible. 

Experts caution us about how we save passwords. Yet, we are urged to change them frequently.  Well, those of you blessed with a much better memory than mine are probably doing just fine. However, in my case, I find myself concerned about saving the password in a bad place and then just waiting for that supreme hack that will rob us of all we own, our children and grandchildren, and our emotional security for generations to come.  Not a pretty picture.

That said, I came upon an article in CNET the other day that essentially tells us that the methodology we have been encouraged to use to create our passwords for maximum security are now basically, well, ineffective. 

Say that again?

Apparently setting up complex passwords comprised of random characters and symbols is not as effective as, say, setting up a password you make up with identifiable and simple characters.

Mind you, I am not talking about using ‘12345’ or ‘password,’ but much less complex and cumbersome than those we are challenged to create today.

Where did this opinion come from?  No less an authority than the so called “father of the modern password,” Bill Burr.

In an article titled “Father of passwords regrets the advice he gave,” CNET writer Chris Matyszczyk writes that Mr. Burr recently has had a change of heart as to what comprises an effective password.

In 2003 Burr recommended that passwords should be made up of an entirely random string of letters and symbols.  This was the best way known then to minimize the chance of a hacker guessing a password.

He has changed his opinion, however, and “It turned out that these are easier for hackers to crack than, say, weird words that you can actually remember. Like ‘gobbledegook.’ Or ‘nincompoop.’”  Please don’t use these, though, as they are only examples from Mr. Matyszczyk.

Why the change of heart?  According to Matyszczyk “Over the years, people seem to have used similar techniques to create their ‘random’ combinations, which made them actually less random.”

Well, then.

Matyszczyk says that we should not be too hard on Mr. Burr.  I agree.  When he wrote that opinion who would have guessed the level of constant hacking that goes on every day, and how successful so much of it is? Random strings of letters and numbers certainly seemed logical and safe.

What to do?

Certainly, do not use simple and easy to guess passwords.  Most sites and apps still require password content to conform to their standards.  We don’t have much choice if the password is required to be complex and as random as possible.

At A. Alliance we pride ourselves on the security of our systems and the protocols we use to protect our client’s data and secure access to our systems. We utilize multiple layers of security to ensure data integrity and do encourage our clients to change their passwords with some regularity and of course advise us when users change and new access credentials need to be created.  However, it is good to know that we can potentially create easier to remember personal passwords that are more secure than originally thought.  Password security, it would seem, does not always go hand in hand with complexity and inconvenience.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded innorthern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 14 years.

Understanding Your Debt and Managing Personal Finances

Receiving a letter or phone call from a collection agency can be both a scary and embarrassing moment.  It is not uncommon for people to ignore collection letters and phone calls simply because they are uncomfortable with the situation. The truth is no one wants to feel embarrassed; it is no fun at all. (How’s that for some good insight)?Receiving a letter or phone call from a collection agency can be both a scary and embarrassing moment.  It is not uncommon for people to ignore collection letters and phone calls simply because they are uncomfortable with the situation. The truth is no one wants to feel embarrassed; it is no fun at all. (How’s that for some good insight)?

Contrary to common beliefs, there is no “typical” debtor. People from all walks of life and socio-economic classes are susceptible to falling behind on their bills. The inability to pay debts can stem from a variety of causes; job loss, prolonged illness, and unforeseen injuries are three common reasons people cite as the cause of their past-due bills.

Another group of people fall behind simply because they have done a poor job budgeting, or have never been taught the importance of money management.

Regardless of the reason, you’ve fallen behind on your bills and have been contacted by a collection agency, now what?

The first thing you should do: Stay calm.

Remember, you are not alone.  Falling behind on your financial obligations is not uncommon in the United States.   Chances are a neighbor, friend, or family member has also been sent to collections at some point in time.

A reputable collection agency will work with you, not against you.  It is important to acknowledge the collection agency and contact them regarding the debt in question.  As a consumer, you have 30 days to dispute certain facts, so it is important to figure out if this debt is yours ASAP.

Once you have established that the debt in question is, in fact, yours do your best to make a payment in a timely manner.  Not all debts are the same; one bill may be for $60 and another $6,000.  If the balance is low, try to take care of it with one payment.  Paying off an old bill feels good, and it’s one less thing to worry about.

Now for that dreaded debt you simply cannot afford to pay all at once.  For some people this amount may be $600,  for others $6,000.  Whatever the number may be for you, it is important to make an effort to pay down your balance.  Contacting the collection agency and setting up a payment plan can stop the phone calls and letters and potentially prevent your credit rating from being harmed.

A recent poll conducted by Harris Interactive found that 57% of U.S. households lived without creating a budget for themselves.

There are some great budgeting resources available online.  I suggest finding one of these sites (I like Nerdwallet. Here is a great post of theirs called Budgeting 101) and planning out your monthly budget.  You may be surprised to find out how you are spending your money.

If you find yourself behind on your bills or cannot afford to pay them, it is important to be proactive. Rather than sticking your head in the sand, utilize all the resources out there, and work with the agency trying to collect the debt. You may be surprised by how helpful a reputable collection agency can be for you. For more information about paying off your debt check out this great resource: Ask Doctor Debt!

Good luck, and remember… it is never too late to improve your credit rating or personal finances.

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded in northern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 14 years

Excessive Debt is Bad: Did You Miss Financial Literacy Month?

Two weeks ago, my friend and colleague Lisa Brammer wrote a great blog about financial literacy (read her blog here) and included a brief quiz of basic financial concepts.  If you took the quiz, did you pass?  Many of us did not, and frankly there is a big price to pay for our lack of basic financial literacy and judgement.

National consumer debt is bad, and getting worse. Those of you who pay attention to such things know that consumer debt is at historic levels.  That includes all types of debt:  mortgage, credit card, auto loan and especially student loans.  The New York Federal Reserve will release its first quarter report on consumer debt in the next few weeks and I would bet bratwursts to Francs we will set yet another record.

Paired with the fact that the majority of us don’t have enough money to even cover one month of our living expenses, let alone a major emergency, our individual financial portraits are, frankly, pretty awful.

So, yes, excessive debt is bad.

So why does this fact seem to attract little attention these days?  When the New York Fed releases its report there are typically cursory news reports about the records we are setting. One can almost hear the cluck, cluck, cluck of the reporter’s tongue citing how bad debt has become.  Shame on you American consumers!

Yet, it seems that when the economy is good, we tend to ignore the consequences of being radically overextended.  With unemployment low, and wages steady if not rising, we pretty much have the cash from pay check to paycheck to pay off our debt.

So how do we change this? 

Events like Financial Literacy Month are good to call attention to the tools and resources available to help us right our financial ships.  Unfortunately, it may take a fairly catastrophic event, like a recession, to really get our attention enough to actually change our habits. 

Yet, sometimes it is just a matter of taking small steps to climb that big mountain.  Google “Financial Literacy” and you will find a ton of resources to help educate and get direction to correct financial peril. 

One such resource I found was actually a government site: www.mymoney.gov.  To quote the website about what the purpose of it is:

“This website is a product of the Congressionally chartered Federal Financial Literacy and Education Commission, which is made up of more than 20 Federal entities that are coordinating and collaborating to strengthen financial capability and increase access to financial services for all Americans.”

What I found interesting is that this is really a simple web site for young, middle aged and older Americans to find basic tools to build their financial literacy. 

They built the site around what they call the “My Money Five,”:

  • EARN – Make the most of what you earn by understanding your pay and benefits.
  • SAVE & INVEST – It’s never too early to start saving for future goals such as a house or retirement, even by saving small amounts.
  • PROTECT – Taking precautions about your financial situation, accumulate emergency savings, and have the right insurance.
  • SPEND – Be sure you are getting a good value, especially with big purchases, by shopping around and comparing prices and products.
  • BORROW – Borrowing money can enable some essential purchases and builds credit, but interest costs can be expenses. And, if you borrow too much, you will have a large debt to be repaid.

Included on each page are simple suggestions for understanding our financial levers.  They also include tools like tax withholding calculators, links to free credit reports, sample budgeting worksheets, tips to protect your personal information and more.

In her blog Lisa points out some good news that younger consumers are improving their financial literacy.  Schools certainly are doing more to prepare students to face financial reality once they become part of the working world. Yet, knowing versus doing are two separate things.  The allure of easy credit is certainly seductive and more attractive than the dull, but critical, discipline of personal financial management.  As our debt picture stands right now it will take a monumental effort to change this situation.  Yet, even a few small steps today can improve our chances of avoiding financial catastrophe. 

A. Alliance Collection Agency, Inc. is a full service, licensed accounts receivable management and debt collection agency providing highly effective, customized one on one management and recovery solutions for our business partners.  Founded innorthern Illinois in 2005, we have been proudly improving the bottom-line on behalf of our business partners in and around Chicagoland for over 14 years.