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DebtSmart    

ISSUE #197

Email Newsletter  

  March 4, 2009  


Scott Bilker
Signature
Scott Bilker, founder of DebtSmart
  

Hi,

Here's a message I received from DebtSmart Reader, Susan Sheffler:

----
Scott,

Thought I would share with you what happened to me when Chase bought out Washington Mutual. I have had a WAMU card for many years and have made all my payments on time and for more than the minimum. Chase sent me a letter informing me that they were changing my interest rate for purchases from 12.74% variable to 23.99% variable. I wrote them and requested that they change it back - they flatly refused. I told them since they didn't change it back, I transferred part of the balance to my Cap1 card and would pay off the rest within 3 months and that I shredded my card. Chase just lost a good WAMU customer. I further told Chase I would be contacting you and sharing my experience with them. They had no explanation other than the standard "no offer is available to you at this time" garbage. I just wanted to alert everyone to Chase's tactics. CONSUMER BEWARE! Thanks for the great work you do, especially in these trying financial times!
----

Thankfully, lawmakers are trying to get some new credit card regulations passed. I'm hoping we'll see some real change. You can read more about that here.

Best,
Scott


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In This Issue

Cool Quote
I've been gouged for $99! Are bank charges negotiable?
STATISTIC: Identity Fraud Up; Consumer Cost Down
The End of Credit Card Rewards?
8 Ways to Consolidate Debt
"On my First call to Chase, I had my interest dropped from 24% to 18% in 5 minutes."
Homeownership Myth: Why Not Everyone Should Be a Homeowner
Household Math™: Semiannual Mortgage Payoff
Taking control of your kitchen
Coder's Half-Million-Dollar Baby Proves iPhone Gold Rush Is Still On
 

Cool Quote

"Prosperity is a way of living and thinking, and not just money or things. Poverty is a way of living and thinking, and not just a lack of money or things."

--Eric Butterworth

More cool quotes from past issues


I've been gouged for $99! Are bank charges negotiable?
by Scott Bilker

Hi Scott,

This just happened to me in the last few weeks.

I spoke to my bank (Bank of America aka BOA) about overdraft protection, which they said was a free service. I agreed to sign up for it. My overdraft protection is linked to our Visa card with BOA.

I wrote a check, which would have caused an overdraft, but since I had the overdraft protection, they took out 3k on our Visa account. Now we got the bill from Visa, which has both a transaction fee finance charge of $99.00 and a periodic rate finance charge (I suppose that's on the 3k we borrowed).

My question is: Is this a charge that I might successfully have waived? Or, shall I resign myself to paying? If it is fightable, any tips on what I might say to them?

Thanks in advance!

Marv

Finish reading the article


STATISTIC: Identity Fraud Up; Consumer Cost Down

Overall Identity Fraud Incidents Increased in the United States--The number of identity fraud incidents increased by 22 percent over 2007, which brings them back up to levels not seen since 2004. The mean consumer cost of identity fraud decreased 31 percent from $718 to $496 per incident, its lowest level since 2005. In cases where identity fraud was reported, 71 percent of the fraud incidents began occurring in less than one week from when the data was first stolen, up from 33 percent in 2005. Women were 26 percent more likely to be victims of identity fraud than men in 2008. Lost or stolen wallets, checkbooks, and credit and debit cards were still the most likely avenues of fraudsters' attacks. These avenues totaled 43 percent of all incidents where the method of access was known. Approximately 1.8 million more adults fell victim to identity fraud in 2008, compared to 2007. This is the first year-over-year increase since Javelin began collecting data in 2004, when 4.25 percent of the overall adult population in the United States was victimized. The greatest increase occurred in fraud on existing card accounts, rather than the crimes which have a more severe impact such as opening new accounts.

More credit card and debt statistics


The End of Credit Card Rewards?

Today's guest post comes from Curtis Arnold, author of "How You Can Profit From Credit Cards." Credit card reward programs, which give consumers everything from free airline tickets to espresso makers to spa treatments, may be on their way out.

Scott Bilker, Founder of DebtSmart, suggests, "Banks are definitely cutting back. Many of my readers have written in with stories of their rewards ending. The interesting thing is that merchants pay more because of the rewards so you would think that banks would keep them in place. I'm not sure if these programs will return when the economy improves. By that I mean they will be back but probably not work the same way. Maybe there will be more fees or other catches that make them less beneficial to consumers."

See story here


8 Ways to Consolidate Debt
by Gerri Detweiler

Next to winning the lottery, a debt consolidation loan is a debtor's dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.

In reality, consolidating bills isn't always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you're not careful, you can end up deeper in debt than when you started.

Your goal in consolidating your debt should be to lower your overall costs. To accomplish this, there are two things to keep in mind...

Finish reading the article


"On my First call to Chase I had my interest dropped from 24% to 18% in 5 minutes."

Hi Scott,

This is Awesome!

I purchased your books a few months ago and read each one from cover to cover. On my First call to Chase, I had my interest dropped from 24% to 18% in 5 minutes. I tried to speak with a supervisor and was told " the supervisor would not be able to lower it any further". Yeah, right.! I told them I was thinking of paying the card off, to no avail. But it was still too much interest, and I would keep trying again.

I then decided to borrow against my 401k at 4% (of which, the principle and interest is paid back to myself), and paid off the Chase credit card 16k. I am also juggling around other ideas for lowering interest on another credit card with a balance of about 15k @ 15%).

Yesterday, I was in the Chase bank on other business and had some questions about a problem I was having with online access. Of course, the banker wanted to view my account, and noticed the card was recently paid off. In the first five minutes, I was offered another card at 0% for 6 months with 6.24% variable, I believe there is a $75 fee of some sort, but after I get the card, I will return to the bank as they "would be happy to go over all of the fine print." Can I waive the "Fee"? We will see.

I informed the banker that I was thinking about moving All of my accounts (Personal and Business) to Schwab (they pay 1% on balances and have Free ATM worldwide). Maybe this made them nervous,,,,I hope so!

I informed them I did not appreciate them offering 6.24% to me now when they were unwilling to go lower previously, and told them to "look at all the money I lost at 18% .... they could have offered 6.24% at that time". The reply was, "that's a different card, and the call center person only has a small window in which to operate". Ha.......Ha.......Ha

In conclusion, this one, un-planned meeting at the bank has solved my problem. You see, when I payoff the other card at 0% for six months, they also offer 4% for balance transfers...let's see now, 6 months at 0%, 6 months at 4%...maybe I'll get another 0% for 6 or 12 months...you get the picture.

Thanks again, Scott, and good luck for 2009!

Robert Childers

Learn how to "Talk Your Way Out of Credit Card Debt"


Homeownership Myth: Why Not Everyone Should Be a Homeowner

Part of what has gotten the economy into such a mess is the belief that everyone should be a homeowner. Everyone from the government, to the mortgage brokers, to the banks, to the realtors and the homebuilders thinks that everyone in this country has the "right" and "duty" to own their own home. "It's the American Dream!" they cry. While it's true that property ownership is a right in the U.S., the truth that no one wants to put out there is that not everyone should or can afford to take advantage of that right.

Sure, owning a home is great, most of the time. Sometimes it stinks. I own a home and enjoy it. But I also didn't mind living in an apartment. There are good and bad tradeoffs to both. When we made the decision to become homeowners, we put a lot of thought and research into the process and decided that it made sense for us. But it doesn't make sense for everyone. Yet so many people...

See story here


Household Math (TM): Semiannual Mortgage Payoff
by Scott Bilker

This question from a DebtSmart Reader, Margie: I purchased property for $27,515.00 at 7.5% for 8 years on a semiannual payment of $2318.00. The first year, three payments were made of $2,318.00; we have paid three years so far. This year, on our due date, we would like to pay off the mortgage. What will be the amount due? (NOTE: Assume that the third payment in year one was made with the second payment.)

Answer this math problem


Taking control of your kitchen
by Gregory Thomas

Those who keep a watchful eye on where their money is spent, have long conquered the kitchen woes. No last minute panic trips to the market. No longer needing the "give-the-kids-$20-for-fast-food" solution. This is no longer a problem or even a concern for the "Kitchen Master".

You, too, can be a 'Master Of Your Kitchen'. All it takes is a little time and planning!

Now you might be saying "I don't have time to plan meals, let alone control my kitchen!" That's fine. Wait until you do have some time.

All you need is just a couple of hours some Saturday or Sunday where you can really "dive" into your kitchen.

Where To Start...

Finish reading this article


Coder's Half-Million-Dollar Baby Proves iPhone Gold Rush Is Still On

Apple's iPhone application store is as crowded as a Beyonce concert, with more than 20,000 apps available. But one independent developer still managed to rake in $600,000 in a single month with a single iPhone game.

Ethan Nicholas, developer of a tank artillery game called iShoot, told Wired.com he quit his job the day his app rose to No. 1 in the App Store, earning him $37,000 in a single day.

See story here



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 ©2009 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.

The DebtSmart Email Newsletter, ISSN 1538-6740, is written and published by Scott Bilker and edited by Larissa Bilker and Denise Troy. Please contact comments@debtsmart.com with any comments, problems, or concerns. (See the very bottom of the email to make changes to your subscription.)

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