Even though I have no debt, lack of funds is
initially why so many people can't pull through with their dreams, and I am not
prepared to accept that."--Sarah Pieper, 15-years-old DebtSmart Reader
Quotes from all previous newsletters
IN THIS ISSUE #153
Larissa S. Bilker
Editor: Denise Troy
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Many people cited overextended credit (55.2%),
unexpected expenses (52.3%), and reduced income (46.3%) as causes of their
financial distress. Others are job loss (33%), illness or injury (31%), and
Letter from the Publisher
by Scott Bilker
Greetings my friend! Hey, this issue
introduces DebtSmart Reader Tips. I hope you will share your advice with
submitting your tip. The first tip is included in this issue.
---- From FICO ---
Fair Isaac Corporation announced on 6/5/07 that it will adjust its FICO
scoring formula to ensure the continued reliability and predictive power of
FICO scores. This action is intended to protect lenders and FICO scores from
abuse of authorized user credit card accounts by a new kind of credit repair
service that sells consumer credit card histories to credit applicants in
order to purposefully misrepresent the applicants' own credit history to
lenders and other businesses.
The adjustment removes authorized user
accounts from consideration by the scoring model in FICO 08, the newest
version of the Classic FICO credit score which Fair Isaac expects to become
available to lenders starting in September.
This could be bad news for people who have
lifted the scores by being legitimate authorized users on other's cards.
Keep an eye on your score to see if this change affects you.
Did you hear this one? Identity thieves went
after Herman Munster. Online ID robbers used a chat room to sell stolen credit
card numbers and personal consumer information about Herman Munster, the
60's Frankenstein-like character from "The Munsters" TV show. The thieves
were from overseas and didn't know that Herman was a fictional character. So
if someone tries to sell you Bruce Wayne's MasterCard number--don't' buy
DebtSmart Reader Tips
by DebtSmart Readers
Note from Scott
Bilker: One thing that I've learned from communicating with the readers
of DebtSmart is that they are truly DebtSmart! And that means that I learn new
things from you all the time! You have a wealth of advice, so I'm asking if
you would like to share your financial tips with everyone who reads the
email newsletter and visits the website.
Here is the first published DebtSmart Reader
Keep your rates low
Personally, as someone who's been deeply in debt, and I've surfed money all
over the place to 0% cards, there's really no better way than to pay your
debt off. Why do people think that they somehow save money by keeping
high-rate debt? If life hits hard, and we get deeper and deeper into debt at
high rates, we will never pay it off. Your greatest wealth-building tool is
your income, and if it's tied up in paying off debt, you can't use it to
your best advantage.
Submit your advice to a DebtSmart community
Video Library Presentation: Refinancing your mortgage
by Scott Bilker
You should always be
thinking about refinancing because your mortgage is probably the most
expensive purchase you'll ever make. Notice that I didn't say your house was
the most expensive purchase. That's because when you took a mortgage, you
purchased that money to pay for the house. The purchase of that money is
paid by the interest charges.
You may have paid $150,000 for the house, but
you purchased that $150,000 from a bank for, let's say, 7% APR over 30
years, with monthly payments of near $1,000 per month, costing you a total
of $360,000.00. That's $150,000 for the house and $210,000 for the money to
buy the house!
Watch video with high-speed connection (Cable Modem)
Watch video with low-speed connection (Dial-Up)
"Happy to reverse the charges"
"Scott--Thank you for all your great articles
and advice. Something happened to me recently in that the bank put a major
hold on a money market deposit and then - six days after the fact - charged
$90 for three over-limit fees that were withdrawn from the account. The
online bank statement was showing the money was available at the time the
transactions were entered. (They have a screen that shows what is in your
account: Total and what is Available. Because I had read your newsletter
previously, I went to the bank, said there seemed to be a problem and that I
needed some insight so that it didn't happen again. Said I had several other
banks that were eager for my account and paid interest on my deposits, but
because I was already set up with a direct deposit to this account, I was
coming to them for clarification. After investigating the fact, they were
very happy to reverse the charges, made it clear to me that they didn't
approve of the way the situation appeared, commiserated about how they
handled some of their own banking (credit card) accounts - and - on the way
out of the bank - the branch manager came out of her office and apologized -
saying they try to catch that kind of thing. Wow--that never happened
before. In the past, the entire situation would have stressed me out and put
me on the defensive. Thank you again for helping me find a way to be open to
taking on the challenge and winning."
Read about special offer for all three of Scott Bilker's best-selling books
Household Math(tm): Fast Mortgage Payoff
Dear Scott: My question is, I want
to pay my $138,000, 5.125% APR, 15-year mortgage, off early. We just
refinanced. My first payment is July 7th. We plan on making one extra
mortgage payment a year, but I would like to add an extra $100.00 monthly to
principal only. By doing these two extras, how early will I pay my mortgage
Answer this problem
Stop Debt Collectors Cold!
Stop Debt Collectors Cold! Plus, for a limited time,
4 bonus reports:(1) How to Get Collection Accounts Off Your Credit Report; (2)
How to Avoid Losing Your Home In A Foreclosure; (3) What to Do if You Are Behind
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Read about stopping debt collectors
Pay It Off Or Keep It?
by Doris Dobkins
Many people are refinancing their home
mortgages. When you refinance, it's important to make decisions based on
your personal and financial goals in life.
In this article, we are going to discuss the
topic of paying off your mortgage early and why you might or might not want
So, what about you? Where do you stand on
this issue or are you as confused as many of us? The book called Ordinary
People Extraordinary Wealth, A New York Times best seller, by Ric Edelman
states in his findings that most of the 5000 people he surveyed with
extraordinary wealth still carry a mortgage.
Finish Reading Article
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!
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information in the Credit Secrets Bible is so powerful, we have to
disclose to you upfront that it is sold for informational purposes only.
If you don't already know, I'll be the
first to tell you... banks, finance companies, bill collectors and
credit card companies are some of the BIGGEST crooks in the world. If
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Banks and other institutions who take
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