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DebtSmart® Email Newsletter
August 8, 2007: Issue #156

Tools for financial success! A Free Email Newsletter from DebtSmart Online and Press One Publishing.

COOL QUOTE

" Wisdom is not a product of schooling but of the life-long attempt to acquire it."--Albert Einstein
Quotes from all previous newsletters
 

IN THIS ISSUE #156

Letter from the Publisher
Cool Quote
DebtSmart Reader Tips - Page 1
DebtSmart® Recommended Products and Services
Negotiation persistence saves $21,000
DebtSmart® Amazon aStore
Statistics: Credit Card Security
"Now I know how to handle these kind of offers..."
Household Math(tm): Punch me for gas
Stop Debt Collectors Cold!
Credit Secrets Bible
New FICO Score is bad news for millions of Americans
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

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Credit Card Security

A new study of credit cards from 25 of the largest issuers found that many still fall short of protecting users from fraud. 56 percent of the 25 card issuers surveyed continue to require full Social Security numbers to help identify their customers, whether by phone, online, or by mail. This is a risky practice that unnecessarily increases the customer's exposure to identity fraud. While more card issuers now offer consumers e-mail or telephone transaction-alerts to advise them of account activity, the number of participating card companies is still small--about 8 percent.
Read more credit card and debt statistics
 

DebtSmart® Recommended

Discover® Platinum Wildlife

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Advanta Platinum BusinessCard with Unlimited Rewards

Intro Rate: 0.00%, Time Period: 15 Months, APR: 7.99%.

Citi® Platinum Select® MasterCard

Intro Rate: 0.00%, Time Period: Up to 12 Months, APR: As low as 8.49%.

Blue from American Express®

Intro Rate: 0.00%, Time Period: 15 Months, APR: 4.99% (for life on transferred balances).

Advanta Life of Balance Platinum Card

Intro Rate: 2.99%, Time Period: Until Paid

Chase Platinum Visa®

Intro Rate: 0.00%, Time Period: 12 Months, APR: 14.24%.

Discover® Platinum Card

Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%.

Letter from the Publisher
by Scott Bilker

Hi,

GET YOUR STORY IN KIPLINGER'S PERSONAL FINANCE MAGAZINE
Have you made huge strides in solving your debt problems? Have you repaid large credit-card balances or student loan debt, saved for retirement, or dealt with rising mortgage rates you could no longer afford? Kim Lankford, contributing editor for Kiplinger's, is working on a story about beating debt and wants to hear your DebtSmart Success Story. Complete this form to submit your story to Kiplinger's!

NEWS
Check this out. Capital One said that it's going to start reporting credit limits. This is BIG news because it will improve the credit scores of Capital One credit card customers. That's because your credit score includes credit usage when calculating the score. Credit usage is the ratio of debt-to-available-credit. The lower the ratio, the better. So if you have $5,000 of debt and your total credit lines reported are $10,000, your credit usage is 50%. If your credit line's maximum increases to $20,000, then the credit usage ratio will drop to 25%.

COMMENTS ABOUT DEBTSMART
"I love all the information that is provided and explanations are simple enough for me to comprehend. I've shared information with family and friends on items that apply to them. Keep up the good work."--RG

Best,
Scott



DebtSmart Reader Tips - Page 1
by DebtSmart Readers

Thanks for submitting your tips! I'm going to be introducing a few new tips in each issue. So you can be sure that yours will be out soon. Here are this issue's tips:

Savings: Pay Yourself Instead
Instead of paying someone to do a job or task that I can do, I do it myself. Then, I pay myself the amount I would have paid them, and I transfer the money to my savings account.
--Carol

Bills: Financial Mentor
Just want to say that I am in debt over my ears and got in this mess by bad choices and lack of knowledge. My advice would be that before making any major purchases, e.g., car and home; get yourself a financial mentor. I believe I would have not been dealing with these messes if I had known this.
--Diane

Groceries: Tea at Work
Tea at work costs 80 cents or 5 cents for a cup of hot water. If I bring my own tea bag, and use my own cup, I'll save about $220.00 per year.
--RG

Savings: Bank the Difference
When you use coupons or buy something on sale, we say, "We're saving money." We never really save that money unless we put the savings into a savings account. This is what my wife and I do: We put the total amount she saves on groceries indicated at the bottom of her register tape into our Vacation Savings Account. Likewise, if I find a deal on something I wanted for the shop, or house, we subtract the difference between the price the item was most frequently advertised at, and what we paid for it, and put it in the Vacation Savings Account. We may not use it to take a vacation, but we have saved enough each year to make an extra car payment or buy things we wanted for the house. We really do save when we shop.
--Dan

Read more DebtSmart Reader Tips

Submit your advice to a DebtSmart community



Negotiation persistence saves $21,000
by Scott Bilker

The best part about DebtSmart.com, for me, is when I get email from readers about their success. Amy and I have been corresponding about her situation regarding settling a debt. When you settle a debt, your goal is to negotiate with the creditor for a deal that benefits everyone. For the debtor, this means reducing the balance and making the payment terms reasonable. For the creditor, it means larger payments and a guarantee of payment in a specific amount of time.

The trick is knowing how low the bank will go when dealing with them, or their third party representatives (debt collectors). Typically, I've found that you can, on your own, get the amount down to about 50% of the original balance. However, the bank will usually want that settlement amount in one payment.

Finish Reading Article



"Now I know how to handle these kind of offers..."

"I read the article 'How banks use low rate offers to lock in high rates' in the July 11 newsletter and it really hit home with me. I have taken advantage of these offers many times and still have a few with the split rates. I went back and looked at how the payment was applied and, to my surprise, found that it was exactly as you described. Now I know how to handle these kinds of offers in the future. I enjoy reading the newsletters and have learned more about handling our finances thanks to your articles. Thank you so much!"

Susan

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



Household Math(tm): Punch me for gas
by Scott Bilker

Hello! I enjoy the debt smart newsletter very much. I particularly like the trivia and have often thought about sending you the following, but just never get around to it. The best part is it is real! Here goes...

Out of the three gas stations in as many blocks, the middle price ranged gas station offers a punch card. For every two gallons of gas purchased, you earn one punch on the card. When you reach 100 punches, you are entitled to your choice from a variety of free goods from their store including a free large one topping pizza, taco meal deal, or $5 worth of gas. The pizza is regularly $10; the taco meal is $7, but you like the pizza because you read the DebtSmart® Newsletter.

At this particular station, the gas averages $.05 more/ gallon than the business across the street.

Also, as a Thursday only special this business offers *two* card punches for *each* gallon of gas.

Finally, this chain offers a rebate gas card that earns you 3% cash back when using your card for purchases at this particular chain. You, of course, pay off the balance in full each month so it is interest free.

QUESTION "At what point does it pay to buy gas here as opposed to the cheaper competitor, or is the lure of free pizza just that?"

I realize there are many variables to this puzzle, but that is what makes it interesting. Hope you can tailor it to fit your puzzles online as needed.

Thanks again for the newsletter!

--Submitted by DebtSmart® reader Tammi Chaney, who always buys gas on Thursday...with the gas card. ;)

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 Collector

Read about stopping debt collectors



New FICO Score is bad news for millions of Americans
by Mark Enderle

I saw lead in the DebtSmart Email Newsletter regarding FICO 8.0 and how it will impact people that are either already authorized users or planning on becoming an authorized user. I thought you might like some additional information on this topic.

After the news broke that authorized user accounts with be removed from consideration in the new FICO 8 score, I have spoken with Fair Isaac, Experian, Evan Hendricks, Gerri Detweiler, and Julie Fergerson of Debix about this development. If this were adopted by the CRAs, this could negatively affect hundreds of thousands if not millions of innocent and unsuspecting Americans, and that is something to be alarmed about.

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!

See the ALL recommended cards



Credit Secrets Bible
by The Consumer Publishing Group

The Credit Secrets Bible contains more step-by-step, easy-to-learn, easy-to-use insider consumer credit 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, interest and fees, etc. Your money will be wasted (down the drain) for no reason other than you don't own the Credit Secrets Bible home study course.

Banks and other institutions who take your money, ruin your credit or deny you the money you need are very powerful. They make a business out of hurting people like you to make more money for themselves. And, the more they hurt you financially, the 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 in their tracks!

Read more about The Credit Secrets Bible


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DISCLAIMER

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 ©2007 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.

 

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"The DebtSmart Email Newsletter is packed with cutting-edge strategies for solving credit problems. I highly recommend it."--Gerri Detweiler, radio host and author of The Ultimate Credit Handbook




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