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In This
Issue
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Cool Quote |
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Pickup Payments |
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STATISTIC: Debt Collector Complaints |
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The Case for Walking Away |
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Avoiding The Credit Card Over-The-Limit Fee |
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"Another bank 'shafting,' courtesy of BofA" |
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Banks Make Rewards Plans Less Rewarding |
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Household Math™: Before the tip |
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Teaching children the value of money |
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The new rules of car buying |
Cool Quote
"There is no class of people in the world, who have such
good memories as creditors."
--P.T. Barnum
More cool quotes from past issues
Mr. Bilker,
I really enjoy reading your newsletter and have gotten
several good tips from it. My problem is that I have a Dodge pickup (pre-owned)
which I owe about $13,000 on, and it is only worth around $9,000. I am about
halfway through a five-year loan and am paying $524.00 a month.
I married recently and am having a baby soon, so I need to
find a way to either get rid of this pickup or lower the payments. What would
you recommend?
Any advice would be appreciated.
Thank you.
Tracy
Finish reading the article
In 2007 consumers filed 70,951 complaints against debt
collectors up from 13,950 in 2000. The bulk of the complaints were for the
misrepresentation of the amount, nature or legal status of the debt by demanding
a larger payment than was permitted by law--a violation of the Fair Debt
Collection Practices Act (FDCPA).
More credit card and debt statistics
The Case for Walking Away
Normally I'd say suck it up, cut spending and repay your
debt. But not if you're going broke.
In January, we're supposed to sit down and organize our
personal finances. This year I'll risk my good-girl reputation with a subversive
idea: go bankrupt in 2009. If you're reaching the end of your rope, don't try to
hold on. Save what you can.
It's painful and humiliating even to consider bankruptcy,
let alone join that crowd in the courthouse corridor, waiting for your name to
be called. Normally I'd say suck it up, cut spending and repay your consumer
debt. But that's not always possible, especially with an economic tsunami
rolling over your home, job and health insurance.
See story here
One of the most troublesome credit card fees that you can
run up against is the over-the-limit credit card fee. Unlike most other credit
card fees where you pay one time for the offense, after you breach your limit,
you can end up paying this fee month-in and month-out. Once you exceed your
credit card limit, the over-the-limit fee is an automatic, computer-generated
fee that will be applied to every statement until you bring your credit card
balance below your limit. While these fees typically range between $25 and $35,
they can be as high as $40, which means you will be paying $300 - $500 a year
for this fee all by itself.
This fee comes into play when you try to make a purchase
that is over the limit that has been set on your credit card. When this happens,
the credit card issuer has three choices...
Finish reading the article
Dear Scott:
You wrote and thanked me for my earlier message about
Chase's latest "sneaky trick" to raise revenue by shafting customers, so I
thought I'd let you know the latest we're experiencing.
Bank of America tried to raise the rate on a "life of
balance" deal I had with them from 7.9% to 16.49%. When I called and complained,
they said I could reject the change as long as I did not use the card again. I
said okay.
Suddenly, a few days later, we got SIX letters--one for
each Bank of America account my wife and I had (mainly as a result of
acquisitions of other banks with whom we had credit cards by BofA over the
years). Three accounts that had just been paid off fully because the teaser
rates were about to go up were closed. The other three that had "life of
balance" rates all had their limits reduced to just above what we currently
owed.
So effectively, my wife and I now have no BofA credit
cards any more. This after many years of always paying early and above the
minimum - to them and everyone else. Not a single late payment on our entire
credit reports. Pretty amazing!
It appears that they've taken the attitude that if they
can't abuse their customers, they don't want them. Fortunately, as was the case
with Chase, this doesn't cause us any difficulty in the short run. However, I
feel for the others to whom I'm sure they're doing this and can't easily escape.
Disgusting!
Thanking you for your excellent work,
Gerry Manning
Learn how to "Talk Your Way Out of Credit Card Debt"
Banks Make Rewards Plans Less Rewarding
The latest currency devaluation is happening in your
bank's and credit card's reward programs.
Airlines have been devaluing their frequent-flier programs
for some time, stepping up the number of miles required to qualify for free
flights and adding restrictions. But until recently, banks had still been
sweetening their rewards programs -- adding more flexible redemption options and
bigger cash-back bonuses to snag customers.
Now, with the economy contracting and fears rising about
credit-card delinquencies, banks are trying to cut costs and bolster profits.
Many card issuers have been testing shorter expiration periods, higher
redemption fees or earnings caps on rewards. "You'll start to see all of those
put into place starting in 2009," says Megan Bramlette, a London-based managing
associate at Auriemma Consulting Group.
See story here
Rachel was telling Jack about her romantic date with Dave.
Jack is a man that is more concerned with the cost of the frolic than the
details of their amorous evening. Jack asked Rachel how much the tab was for
food only (tax included). Rachel was too focused on Dave to remember the amount
for the actual dinners, but she did remember tipping the waiter 16% and that the
final bill, tip included, was $159.50. Jack was quite amazed that Rachel would
remember so much but not recall the cost of the dinner before the tip. Of
course, Jack knows his math and can easily figure it out. Can you? What is the
cost of the dinner before the tip?
Answer this math problem
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. dollar.
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 taught.
Learning how to successfully manage money is a skill they
will have for life...
Finish reading this article
The new rules of car buying
You've seen the headlines: automakers on the brink, sales
slowing to a crawl, credit tighter than ever. Yet amid all of this gloom there's
a silver lining: deals of a lifetime. But to snag one, you have to learn how to
navigate today's uncharted market.
You can hardly escape the grim news surrounding the car
industry: an 11th-hour federal loan package to help General Motors and Chrysler
survive to the new year, frugal consumers shying away from big-ticket purchases
- especially four-wheeled ones - and tighter credit making it tougher for the
few willing buyers to borrow. November auto sales plunged 37% from a year
earlier, according to Autodata, a sales tracking firm. Even after production
cutbacks, ports are stacked high with new cars that can't fit on dealer lots.
See story here
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