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DebtSmart® Email Newsletter
February 20, 2008: Issue #170

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

COOL QUOTE

" I have never been in a situation where having money made it worse."--Clinton Jones
Quotes from all previous newsletters
 

IN THIS ISSUE #170

Letter from the Publisher
Cool Quote
7 Steps For Eliminating Your Debt
DebtSmart® Recommended Products and Services
Why budgets don't work and how to fix it
STATISTICS: Online Order Fraud
"3.9% sure is a whole lot better than 10.25%"
Household Math(tm): Minimum Payment Balance
7 household budgeting tips
DebtSmart® Column for your use in-print, ezine, or website
DebtSmart® books and software, and other products
Update Your Email Address, Subscribe, Unsubscribe, and Disclaimer Information
Publisher: Scott Bilker
Editor: Larissa S. Bilker
Assistant Editor: Denise Troy

ISSN 1538-6740

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Online Order Fraud

The percent of accepted online orders, which, are later determined to be fraudulent increased slightly. In 2007 the survey shows the overall average fraudulent order rate was 1.3% vs. 1.1% in 2006. The share of incoming orders merchants decline to accept due to suspicion of payment fraud was also up slightly. In 2007 the overall order rejection rate due to suspicion of fraud was 4.2% compared to 4.1% in 2006. Some merchants of similar online revenue size selling similar goods online have order rejection rates significantly below 4% while still maintaining low fraud rates. Therefore, we believe that merchants with order rejection rates near or above the 4.2% rate are rejecting a significant number of valid orders.
Read more credit card and debt statistics
 

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Letter from the Publisher
by Scott Bilker

Hi,

You'd think that we would get a break with the Federal Reserve lowering the prime rate, but it seems that banks will attempt to drain our pockets at every turn. Bank of America said it would be jacking rates on some credit cards based on consumer risk. As banks' losses continue, they're increasing rates and fees on many loans, including auto loans.

Just beware, and keep your eyes on your statements. If any banks try to raise your rate, look for a lower rate card, and transfer your balance. That's the only way to keep the banks competitive.

Hey, tax season is almost here! April 15th is around the corner. You should have almost all, if not all, the paperwork you need to file. Keep in mind that there are always changes in the tax laws that can benefit or hurt. That's why I use, and recommend using, tax software. Personally, I like TurboTax and have been using it for over 10 years. What's great about software is that it will prompt you to find more deductions as well as any new changes. It also includes videos.

One last item. Before buying anything, you should check CouponMountain. This site has coupons from hundreds of companies, and it's easy to search.

Best,
Scott
PS: NEW READER COMMENTS--THANKS!!

"Love the site - keep up the great work!"-- Lianne

"Wow! I worked in the credit card industry for almost 7 years. I thought that I knew the tricks of the trade. (Despite this knowledge and experience, I still got myself in debt with high interest rates and occasional unfortunate late fees or over limit fees). Reading your book was refreshing. It was an honest approach. I no longer work in the industry, but thank you for giving advice that doesn't involve screaming, swearing, threatening, etc. Your approach is reasonable, sound, logical and responsible. Thank you!"--Angela

"Dear Scott, I always read your news-emails and this time I can tell you it came in the nick of time. I had just happened to find the 'Biweekly payments' link on CitiMortgage's website and started to fill out the application. Their calculation promised me I'd save 10 years off the end of my mortgage, which sounded pretty good, right? However, inspired by your article, I ran the numbers in your loan calculation spreadsheet, and what do you guess, if I just increased my current payments with the corresponding amount, I'd actually save 4.5 years more..!!! So I went back and really read the fine print, where it turns out that they actually just put the money in an account and hold it there, interest-free, of course, until they make the regular payment..! So please accept my most grateful thanks, you have once again saved me from making a less than optimal decision..! Cheers."--Magnus Lundin




7 Steps For Eliminating Your Debt
by Scott Bilker

Many people may say that shedding debt is common sense: "Pay for everything in cash and don't incur any debt." Yeah, sure, easily said when you have a household income of 70 to 80 thousand dollars (and no kids). Obviously, the best way to handle your finances is to pay for everything with cash. Not everyone has that luxury.

I don't know anyone who purchased their home with cash. There are also other situations that arise--like medical and family emergencies, unexpected car failure, and the list goes on. Just because you have some debt, doesn't necessarily imply that you've mismanaged your entire financial life.

Once you suspect that your debt is starting to get as large as the federal government's, you may want to consider a quick diet for debt reduction.

Finish Reading Article



Why budgets don't work and how to fix it
by Terry Rigg

This article is for those families that have sat down at a desk or the kitchen table time after time trying to develop a family budget that they can live with.

Why don't they work?

There are several answers to that question. Most budgets are doomed from day one because they are too complicated, don't have the commitment of all involved, or the numbers simply don't add up. The biggest culprit is that most people don't allow for unexpected expenses.

Let's tackle these one at a time...

Finish Reading Article



"3.9% sure is a whole lot better than 10.25%"

Hi Scott,

I received your book Talk Your Way Out of Credit Card Debt,--it's a winner!

I have 6 credit cards. Today I decided was the day to TALK my way to lower APR's. Hey, the prime rate is dropping.

Simmons First National Bank, Pine Bluff, Arkansas--been a credit card holder with them since 1973. The rate was 12,25 variable. Called and got it down to 7.25% FIXED for Purchases and Balance Transfers. Now listen to this: Finance charge is calculated on Average Daily Balance. No Annual Fee. NO transaction fee for Balance Transfers.

Chase--got them to reduce from 12.47% to 9.49% Variable. Will transfer this one to Simmons.

Called American Express--they will not reduce from 10.25%--so will transfer all but $200 of this one to Simmons as well since I have a credit limit of $30,000 with Amex.

I found a DISCOVER CARD--called OPEN ROAD--in last Sunday's Austin, Texas newspaper--3.9% APR on balance transfers until January 2010. No Annual fee, 5% cash back on gasoline and auto related expenses PAID Monthly. They just called me to say I have been approved. WOW!

3.9% sure is a whole lot better than 10.25%

Thanks for all the good stuff in your book.

Cheers,
Noel G.

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



Household Math(tm): Minimum Payment Balance
by Scott Bilker

Jeff owes Visa $2,500. The credit card company has an interest rate of 19.6% APR. The company requires a minimum payment of 2% of the unpaid balance, rounded to the nearest dollar. Jeff makes no additional purchases with this credit card and makes only one minimum payment monthly.

How long will it take him to pay off $500 on the $2,500 balance?

Answer this problem



7 household budgeting tips
by S. L. Simmons

Do you frequently get cash from ATMs and then have no idea where it ends up? Do you end up paying late fees simply because you don't have a good system in place for tracking and paying your bills? If you don't have a good budget system in place, it is easy to lose track of your hard earned money. The tips below can help you to keep your finances under control.

1. Keep your financial records organized and your filing up to date. Have a set of file folders for items such as receipts, bills, canceled checks, checking account statements, etc. Have a designated place where you keep or can easily assemble your master home budget, your financial files, checkbook, etc. so it is all in one convenient location.

Finish Reading Article


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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 website. 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 website 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 ©2008 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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