COOL QUOTE " If money is your hope for independence, you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability."--Henry Ford, 1863-1947, American Industrialist Quotes from all previous newsletters IN THIS ISSUE #129 Letter from the publisher Cool Quote Cheapest pre-paid phone rates Fighting an Increasing Rate More credit card and debt statistics Blue Cash® for Business Credit Card "I saved $1,334 per hour. It was so easy!" Discover® Platinum Gas Card Household Math™: What is APR? Blue from American Express® Discover® Platinum Wildlife Card Stop Debt Collectors Cold! Budgeting 101 More credit, more options! Free DebtSmart® Column for in print publication, ezine, or web site Books, software, in-print and downloads Archive of Email Newsletters online Advertising Update-Subscribe-Unsubscribe-Disclaimer Information Publisher: Scott Bilker Editor: Larissa S. Bilker Assistant Editor: Denise Troy ISSN 1538-6740 You can add DebtSmart® News RSS feeds to your newsreader pages. Note: RSS feeds are not a replacement for the email newsletter but a fast method of finding out what's new here at DebtSmart.com. Debt Collector Complaints In April, the Federal Trade Commission, which enforces the federal law that governs debt collection practices, reported that it received 66,627 complaints against third-party debt collectors last year--more than against any other industry, and nearly six times the number in 1999. Read more credit card and debt statistics Stop Debt Collectors Cold! Stop Debt Collectors Cold! Plus, for a limited time, 4 bonus reports: How to Get Collection Accounts Off Your Credit Report, How to Avoid Losing Your Home In A Foreclosure, What to Do if You Are Behind on Your Car Payments, and Confidential Interview With A Former Debt Collector. Read about stopping debt collectors

Hi,

Thank you for helping with the website by replying to the survey from last issue. The results are that 70% could see the banner, so I have some work to do to ensure that everyone can see all the website content.

Here's something quite interesting I found in Denny Hatch's article, "The Decline and Fall of AOL: The trashing of a money machine and a great brand."
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AOL has tanked. Now down to 18+ million members and huge marketing costs, it is keeping unhappy members by making the quitting process so difficult and unpleasant that it's easier to keep paying them money. AOL paid $1.25 million in fines to settle a fight with New York Attorney General Eliot Spitzer over its policy of continuing to bill members who had quit. But it ignored the consent agreement and allowed retention specialists to wreak havoc on the membership.

If you have not heard Vincent Ferrari's attempt to unsubscribe to AOL, I urge you to give a listen--a textbook example of stupid customer service. You will be appalled by this recording.

Click here for a printed transcript of the exchange.
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Best,
Scott

473 FREE minutes, 1.9 cents USA and Canada, 2.5 cents UK, no switching. NO NEED TO CHANGE CARRIERS. Long distance services can be used with your home phone, cell phone and with any other private touch-tone phones. Your flat domestic rate will vary depending on the plan you choose. No access fees, surcharges or any hidden fees. A valid credit card is required to acquire service. U.S. Residents only. Any and all Free Minutes Talk Time is only valid in the forty-eight (48) contiguous United States.

Read more about pre-paid phone services

Scott,

I had a card that had a fixed rate of 5% on my balance. I closed the account years ago when I started taking control of my debt. Since this was the lowest rate of the cards I had, I was only paying the minimum and concentrating instead on paying off other high interest credit. I received a notice with one of my invoices that they would be increasing the rate to 20% and that I basically didn't have a choice in the matter (fine print). I transferred the balance over to other cards that would have a lower APR than the 20% they would be imposing, however this severely limited my available credit for emergency purposes.

Just wanted to know if it is legal for them to increase the rate on a closed account and if there was any other option for me to consider. Obviously this would be information for any future similar situations. Thanks!

Mike

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Intro Rate: 0.00%, Time Period: 6 Months, APR: 7.99% (for life on transferred balances). The Blue Cash® for Business Credit Card, issued by American Express®, is designed for business owners with average credit who plan to take advantage of the cash back reward program. The cash rebate amount varies according to where the cardholder makes their purchases. Cardholders earn a cash back rebate of up to 5% at "OPEN Savings" locations and up to 2.5% for all other general purchases. It is important to understand that once the annual spending exceeds $15,000, the rebate for additional "Open Savings" purchases is 2%, and the rebate for all other additional purchases is 1%. "OPEN Savings" locations include FedEx®, Hertz®, 1-800-FLOWERS.COM®, and more.

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"I spent about 2 hours reading this book (Talk Your Way Out of Credit Card Debt), getting comfortable with the strategies. Then, after my first phone call, which saved me $210 per year, I was off and running! I was able to reduce my interest rate by as much as 9%. I called all six of my Mastercard/Visa companies and was able to save $1,983 per year from the finance charges plus having a $59.00 annual fee removed and a late fee removed ($29.00). The $/hour saved ranged from $141/hour to $2,464/hour and averaged $1,334/hour. It was so easy!!"

Fred Robinson, Teacher, Milford, NH

Read about special offer for all three of Scott Bilker's best-selling books

Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%. The Discover® Platinum Gas Card, issued by Morgan Stanley, is designed for those with very good credit who are looking for a cash reward credit card. Through the reward program, cardholders earn a full 5% in cash rebates for gas purchases, up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores. Those who spend up to $1,500 on general purchases will receive a .25% rebate, between $1,500 and $3,000 will receive a .5% rebate, and over $3,000 will receive a full 1% rebate.

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Actually, it's the abbreviation for Annual Percentage Rate. The APR is quite simply the periodic rate multiplied by the number of periods in a year. For example, if the monthly rate of interest is 2 percent, then the APR is 24 percent because 2 (the periodic rate) multiplied by 12 (the number of periods, or months, in a year) equals 24 percent. Okay, so now that you understand the APR, here is the question: What is the daily rate (one day is the period) if the APR is 14.6 percent?

Answer this problem

Intro Rate: 0.00%, Time Period: 15 Months, APR: 3.99% (for life on transferred balances). Blue from American Express® is an ideal credit card for those with good credit who already have an established credit history and are looking for a card with access to a reward program. Various American Express® services and benefits are provided with this card, such as purchase protection, auto rental insurance, a year-end financial statement, and various travel and emergency assistance services.

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Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%. The Discover® Platinum Wildlife Card, issued by Morgan Stanley, is designed for those with very good credit who are looking for a Cashback Bonus® reward credit card. Through the reward program, cardholders earn a full 5% in cash rebates for purchases made at select merchants, up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores. Those who spend up to $1,500 on general purchases will receive a .25% rebate, between $1,500 and $3,000 will receive a .5% rebate, and over $3,000 will receive a 1% rebate.

Read more about this card

Even a CPA thinks this topic is boring. So why did I choose this topic to discuss? Because unless you have an unlimited supply of cash and savings, it is probably something you should think about and consider. Most people think of a budget as a set of rules that tell you where you can and more often can't spend your money. I try to think of a budget as a tool -- something you use to achieve a goal. Maybe your goal is a special vacation or a new house. Maybe it's saving for your kids college education or your retirement. Or maybe it is much more basic such as paying your monthly bills or paying off your credit card debt. Whatever your goal may be, a budget can help you achieve it.

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More credit, more options!

Credit options are your weapon against the banks! The key to success is using your credit lines to save money--not to go crazy spending!

The author(s), Press One Publishing, and DebtSmart.com shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly by the information contained in this email newsletter and/or at the DebtSmart.com web site. The information, methods and techniques described may not work for you and no recommendation is made to follow the same course of action. Every effort has been made to verify the accuracy of all content contained herein. However, there may be mistakes; typographical, mathematical, or in content. This email newsletter and the DebtSmart.com web site have been created for your entertainment only. You must always seek the proper professional advice before taking any financial or legal action. You have been warned.

Copyright ©2006 Press One Publishing. All rights reserved. Please do not reprint, or host on your web site, without explicit permission. However, if you found this newsletter helpful, we grant you permission, and strongly encourage you, to e-mail it to a business associate or a friend. Thank you.