IN THIS ISSUE #154
Larissa S. Bilker
Editor: Denise Troy
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70 percent of car owners said they will cut back on
entertainment spending if gas prices were to increase a dollar, 66 percent said
they will change their vacation plans, and 64 percent said they will postpone a
Letter from the Publisher
by Scott Bilker
The last email newsletter included the first
official reader tip. Also, I asked for tips from everyone. Would you believe
that I only received two tips? I'm shocked! I thought that I would be
overwhelmed by financial advice. Maybe everyone is at the beach. ;)
So here's the deal. You must submit a
tip! That's an order! And here's why...
#1 I know FOR SURE that you have something to
share that can help others save money. It doesn't matter your situation, you
have something to offer.
#2 When you share your advice, good things
happen. I'm a perfect example. The more I write about saving money, the more
money I've been saving. The more I've written about how to take advantage of
bank offers, the more benefits I've received from using my credit cards.
#3 The more you think about a tip, the more ideas
you will get for yourself and the more money you will save!
So I say again, your homework assignment is to
come up with a good tip. We would all appreciate a financial tip on any topic, e.g., Automobile,
Banking, Bills, Budgeting, Credit Cards, Debt Management, Groceries,
Household, Investment, Kids & Money, Lifestyle, Miscellaneous, Savings,
Shopping, Taxes, etc.
I'm looking forward to reading your tip!
Fill out the form here.
DebtSmart Reader Tips - Page 1
by DebtSmart Readers
Technique Make Money
Here's an advanced technique I developed after digging out from under a pile
of credit card debt. As I paid off one card after another, the card
companies became more and more generous with low rate offers on old accounts
as well as new ones. When one company offered me 0% for a year, I said "Why
not?" I borrowed $10,000 (deposited to my checking account) and bought a one
year certificate of deposit paying 5%. It's important to check the transfer
fee--often 3 or 4% but usually limited to a maximum of $75 to $90. If the
transfer fee has no maximum, the scheme doesn't work. With regular minimum
payments of $200 a month, by the end of the 0% year, I only owed $7600 plus
the transfer fee, and I cashed out the CD for $10,500. Of course most of the
effect comes from forced saving of the monthly payments, but it is nice to
have the banks pay me interest rather than the other way around! I use
on-line banking so was able to pre-schedule the payments each month a few
days before the due date guaranteeing I wouldn't have any late payments,
which would ruin the deal.
Attach Debit Card
Sometimes it's smart to have a debit card, attached to your checking
account, instead of a credit card. You can't spend if you don't have it! You
don't have to have a good credit rating for it, and if you use Credit,
instead of Debit, you won't be charged for the transaction.
Read more DebtSmart Reader Tips
Submit your advice to a DebtSmart community
How banks use low rate offers to lock in high rates
by Scott Bilker
I have used the lower interest rate checks
from my credit card company to transfer debt. I noticed on my statement that
the balances on the original rate and the new rate are not getting paid down
proportionately. Can I get the company to apply my payment my way? Is the
use of these checks a benefit or a curse?
Finish Reading Article
"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): Compounded Daily vs. Monthly
You have $10,000 that you want to
deposit in a money market account. Both accounts pay 5% APR (Annual
Percentage Rate). One account is compounded daily, meaning that interest is
paid daily to the account. The other is compounded monthly, meaning that
interest is paid monthly. After one year, how much more is earned by
depositing the money in the account that is compounded daily?
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
on Your Car Payments; and (4) Confidential Interview With A Former Debt
Read about stopping debt collectors
Teaching children the value of money
by Gregory Thomas
We take it for granted that children know how
money gets into our wallets. The tips below will guide you through teaching
your children the value of money.
Now I'm not referring to the value of stocks
and bonds, compounding interest, or the current market value of a U.S.
What every child should be taught at some
time is: the purpose of jobs (how we earn money), saving for goals (how to
save money), limit needless spending (how to budget).
It's up to you to decide when and at what age
it is appropriate to discuss these topics. But keep in mind that if you
don't teach them the skills to make educated, responsible decisions with
their money, you will be holding back a valuable lesson that should be
Learning how to successfully manage money is
a skill they will have for life.
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!
the ALL recommended cards
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Consumer Publishing Group
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secrets than any other home study course on the market. In fact, the
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
you don't know the secrets contained in the Credit Secrets Bible,
you will pay tens of thousands of hard-earned dollars in extra bills,
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Banks and other institutions who take
your money, ruin your credit or deny you the money you need are very
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more powerful they become. But they won't be able to hurt you anymore!
With the Credit Secrets Bible, I'll show you how to stop them dead
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