Becoming & Staying Debt Free

Another Birthday

2009-07-13T09:46:00.001-05:00

I turn another year older today. To celebrate, I will be utilizing a hotel hot tub and swimming pool, to relive some of the pain in my always aching back and neck.
Two nights of relax in comfort, not to mention air conditioning. I am so looking forward to it. I know it's not very frugal, but I saved for months for it, and even paid for it in advance.

I get off work early this afternoon, and then am off until tomorrow afternoon. As such, I will be a way from the computer for a couple of days. May God bless this wonderful time to get away from everything (except my full time job).

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America's Thriftiest Cities

2009-07-13T08:28:00.001-05:00

Eve wonder where people that save the most live? No? Well, I never really thought about it either, but I found this story interesting enough, that I had to let you all know about it to.

For many Americans, instant gratification has taken a backseat to long-term financial security. In May 2009, the U.S. personal income savings rate increased to 6.9 percent from 0 percent a year earlier. This is the highest level since December 1993, according to the Commerce Department.

Given the recession, it's understandable that Americans are hording more cash by spending less. Some, though, are doing a better job than others.
- ABC News

Well, the article is misleading. It's actually about credit card debt vs Median Household Income. In that category, Washington, D.C. comes in first, because as ABC News reported,

Government jobs attract those who are conservative about personal finances, suggests Alice M. Rivlin, an economist at Brookings, a Washington, D.C.-based independent research firm. What's more, this is a relatively prosperous metro area with a low unemployment rate of 6.2 percent (the national average is 9.5 percent). The District of Columbia also has high concentrations at the top and bottom of the income distribution spectrum--with 20 percent of residents below the poverty level--and a smaller middle class.

So what are the Top 5 cities with the lowest credit card debt?

5. Kansas City, MO

Percent of Income Owed to Credit Card Companies: 12.07%

4. Boston, MA

Percent of Income Owed to Credit Card Companies: 11.75%

3. Nashville, TN

Percent of Income Owed to Credit Card Companies: 11.73%

2. San Jose, CA

Percent of Income Owed to Credit Card Companies: 11.46%

1. Washington, D. C.

Percent of Income Owed to Credit Card Companies: 11.43%

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Reader Having Difficulting Keeping Up

2009-07-10T08:37:00.003-05:00

Sometimes readers, will write the Prince Of Thrift with questions. Such was the case when Cheryl (not her real name) recently wrote and asked:

My DH and I are thinking of restructuring our debt so we can get out of debt and afford our current payments. Right now it's more than difficult to keep up. Do you have any suggestions about where we should start. There are so many companies, it's hard to know who to trust.
Thanks for any info you can share.
- Cheryl

As I always do in such situations, I am thoughtful of what they are are asking and answer to the best of my ability. Since, I am not a certified financial counselor nor do I have any other licenses, I have to be careful with what I say. I do try to refer them in the right direction. Below, is my answer to Cheryl:

Thanks for the email. Do not mess with any of these debt settlement places that advertise on TV or the net. If you can't get a debt consolidation loan through your bank or credit union, there is only one place to trust in Topeka. Consumer Credit Counseling. They are trustworthy and if I remember correctly the fee is only $20. The only thing is they can't do anything with your secured debts. Only your unsecured debts, will they be able get lower payments (paid through them) for you. It will however, put a ding on your credit report.

As for the debt consolidation, option, Dave Ramsey calls it debt CONsolidation, and for good reason. Most people that go that route, ends up using the freed up money to get more debt and then they are in worse shape then before. If you use debt consolidation, you must give up all other credit. The only debt you should have would be the one debt, that now has a lower payment and should have lower interest to.

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$20 a Gallon

2009-07-09T08:47:00.001-05:00

$20 a gallon? We scoff now, but some experts say it is coming sooner then you think.

Forget the classic road trip. Americans are abandoning afternoon drives and summer getaways, thanks to the recession and an unemployment rate that's hovering dangerously close to double digits. The American Automobile Association estimates that the number of drivers traveling over the Fourth of July weekend—that penultimate holiday weekend of the summer—dropped by 10.5 percent over the last two years. And, while gas prices have fallen since the record high of more than $4 a gallon in the summer of 2008, filling up the tank can still set people back considerably.

In his new book, $20 Per Gallon: How the Inevitable Rise in the Price of Gasoline Will Change Our Lives for the Better,Forbes writer Christopher Steiner argues that the increasing cost of fuel will radically change the way we live, from the cities we choose to call home to the way we grow food. NEWSWEEK'S Nancy Cook spoke to Steiner about why he thinks Americans will be forced to restrict plane travel to once a year at most, why solar panels will line the rooftops of apartments, and how gas prices will force suburbanites back into cities.
- Newsweek

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Sporadic but Hopefully Great Posts

2009-07-08T08:48:00.002-05:00

You have probably noticed that my posts have become a bit more more sporadic again. Well there is a reason for that. Most all of my free time, from work, I am either spending time with or am on the phone with my girlfriend.

I have promised her that I will set certain times to be online, because in no way do I want her to feel like a second fiddle. I am not married to the computer and I don't ever want her to feel that I am.

I do plan to try to write several posts at once, and schedule them to appear and other times throughout the period that I'm not online.

I still plan to make a huge push to be debt free by the end of the year, but I now have a budgetary line that was not originally in my budget. So because of that, some of my best laid plans may not happen as I had planned. It's all apart of that gazelle intensity, but even with that I have to have a life. That includes finding the person who will one day be my "princess of thrift."

The nice thing about my current girlfriend, she is supportive of my efforts to get out of debt. Unlike other women I have dated, she understands, that if I am out of debt, I can have more money later on.

So with that, I will say have a good day, and stay tuned in to this website for great updates on my personal finances and terrific news bites and anecdotes that I learn on related personal finance issues.

For now, I need to go and finish mowing the yard, cleaning the house and cooking dinner for my girlfriend who is coming over tonight.

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Time for new shoes

2009-07-08T08:14:00.001-05:00

In Oct of 2007 I posted about getting new shoes. New shoes that should help my suspected Plantar Fasciitis. Well, here it is July and I am just getting another pair to replace those old shoes. Something, that shows how much better quality they are over the shoes I had bought previously at Payless Shoes.

These new shoes cost me rigt around $60 for New Balance, and the inserts which I again bought cost me another $35. All in all, I spent right around $100 for my new shoes.

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4TH OF JULY

2009-07-04T08:44:00.001-05:00

Have you ever wondered what happened to the 56 men who signed the

Declaration of Independence ?

Five signers were captured by the British as traitors, and tortured

before they died.

Twelve had their homes ransacked and burned. Two lost their sons

serving in the Revolutionary Army; another had two sons captured.

Nine of the 56 fought and died from wounds or hardships of the

Revolutionary War.

They signed and they pledged their lives, their fortunes, and their

sacred honor.

What kind of men were they?

Twenty-four were lawyers and jurists. Eleven were merchants, nine

were farmers and large plantation owners; men of means, well educated,

but they signed the Declaration of Independence knowing full well

that the penalty would be death if they were captured.

Carter Braxton of Virginia, a wealthy planter and trader, saw his Ships

swept from the seas by the British Navy. He sold his home and

properties to pay his debts, and died in rags.

Thomas McKeam was so hounded by the British that he was forced to

move his family almost constantly. He served in the Congress without

pay, and his family was kept in hiding. His possessions were taken from

him, and poverty was his reward.

Vandals or soldiers looted the properties of Dillery, Hall, Clymer,

Walton, Gwinnett, Heyward, Ruttledge, and Middleton.

At the battle of Yorktown , Thomas Nelson, Jr., noted that the British

General Cornwallis had taken over the Nelson home for his

headquarters.

He quietly urged General George Washington to open fire. The home

was destroyed, and Nelson died bankrupt.

Francis Lewis had his home and properties destroyed.

The enemy jailed his wife, and she died within a few months.

John Hart was driven from his wife's bedside as she was dying. Their

13 children fled for their lives.

His fields and his gristmill were laid to waste.

For more than a year he lived in forests and caves, returning home to

find his wife dead and his children vanished. Some of us take these

liberties so much for granted, but we shouldn't.

So, take a few minutes while enjoying your 4th of July holiday and

silently thank these patriots.

It's not much to ask for the price they paid.

Remember: freedom is never free!

I hope you will show your support by sending this to as many people

as you can, please. It's time we get the word out that patriotism is NOT a

sin, and the Fourth of July has more to it than beer, picnics, and

baseball.

Let's stand up for what Democracy truly means, especially in our time............that government of the people, by the people, for the people, shall not perish from the earth. ~ Lincoln

Have a great Independence Day!
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Breaking News: Billy Mays dead at 50

2009-06-28T18:30:00.000-05:00

Television pitchman Billy Mays — who built his fame by appearing on commercials and infomercials promoting household products and gadgets — died Sunday.

Mays, 50, was found unresponsive by his wife inside his Tampa, Fla., home at 7:45 a.m. on Sunday, according to the Tampa Police Department.

Police said there were no signs of forced entry to Mays' residence and foul play is not suspected. Authorities said an autopsy should be complete by Monday afternoon.

"Although Billy lived a public life, we don't anticipate making any public statements over the next couple of days. Our family asks that you respect our privacy during these difficult times," Mays wife, Deborah, said in a statement on Sunday.

- Fox News and other sources

We here at DebtFree4ever would like to wish our heartfelt condolences to the King of the Pitchmen.

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Getting To Financial Freedom

2009-06-26T10:17:00.003-05:00

ABC News reported 10 unconventional money saving tips. So what are they (watch the video for full details)?
1. Focus on getting over the $100,000 hump.
Ok, the idea here is that you will have to save $1 million over the course of your life for retirement. The first $100,000 is the hardest, so you must focus on that huge hurdle.
2. Add back in income taxes when determining costs.
Make spending more painful. Say you spend $2000 for a vacation. If you think about it as having to earn $3000 to spend that $2000, you might be a little more careful with your spending.
3. Use the multiply by 25 rule to determine how much it takes to finance for life each of your spending categories.
say you spent $100/year on books. If you multiply that by 25 and put the $2500 in an account, the interest on that $2500 will fund your purchases in that category for life, so you never have to worry about it again.
4. Translate dollars spent into hours worked
how many hours of your life did you give up to spend what you are spending on whatever?
5. Pursue short-term money saving goals
Sounds a lot like what Dave Ramsey encourages on this one
6.Don't save in pursuit of a general desire to get ahead
save for specific goals
7. Pursue Goals of Intense concern to you and you alone

8.

9.Don't Pay yourself first, pay yourself last
very unique, have to listen to video to hear his explanation on this one
10.

They interviewed Rob Bennett who wrote a book called Passion Savings. I certainly want to check this book out.
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Financial News of Interest

2009-06-26T08:46:00.001-05:00

Savings Rate At 15-year High
The AP reporting that the savings rate is at a 15-year high. This is great news considering the last few years, the reports indicated we had a negative savings rate.

WASHINGTON - Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.

The Commerce Department said Friday that consumer spending rose 0.3 percent in May, in line with expectations. But incomes jumped 1.4 percent, the biggest gain in a year and easily outpacing the 0.3 percent increase that economists expected.

The savings rate, which was hovering near zero in early 2008, surged to 6.9 percent, the highest level since December 1993.

FCC Approves Embarq Sale
When I read this story, I was intrigued. However, one sentence in the story took my aback. In short a small regional company in the south is buying the Sprint spin off known as Embarq. OK, all good and well, but then the Topeka Capital Journal reports that 2/3 of the new company will be owned by the shareholders of Embarq. That is something I usually don't see. Smaller companies buy larger rivals all the time, but for the purchased company to have controlling interest, that's a new wrinkle.

While the company will be based at CenturyTel's headquarters, Embarq shareholders will own two-thirds of the business. They are set to receive 1.37 CenturyTel shares for each share of Embarq stock they own.

Based on CenturyTel's Wednesday close of $31.51, that's equivalent to $43.17 worth of CenturyTel stock for each Embarq share owned.

CenturyTel shares closed up 65 cents at $32.16 in trading Thursday while Embarq shares finished up $1.06 to $44.08.

CenturyTel Chief Executive Glen Post will hold the same position in the new company, with Tom Gerke, Embarq's CEO, as executive vice chairman.

CenturyTel Inc. expects to close its acquisition of Embarq Corp. on July 1. While the ticker symbol will stay the same, the new company will be called CenturyLink.

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Surviving The Heat Wave

2009-06-25T07:41:00.002-05:00

As much of the nation was gripped by a heat wave, we here in Topeka was no different. The temperature outside danced around 100, with Topeka's heat index, being as high as 111.
These days are good days to find air conditioning and stay in doors. For me that is to go to work and enjoy the indoor temperatures there. As my house the first two days never dipped below 95 degrees, even with the fans and dehumidifier running. Finally, on Tuesday, I had enough and went to Kmart, to buy 2 more fans. One a huge powerful fan to help blow some breeze in my kitchen and dinning room areas. The other a box fan, to help suck hot air out through my bedroom window by day, and bring in cooler air at night.

This simple thing dropped the inside temperature to 89 after the first night and this morning after the second night of it, the house temperature was only 86 this morning when I woke up. Much more comfortable then it has been. We still have 48 hours of this extremely early and high temperatures, but I think I will cope with it just fine. Next year, once the car and everything is paid off, I will have been able to save the $2000 to install a central air unit finally.
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Welcome ABC Viewers

2009-06-22T18:21:00.002-05:00

Tonight, ABC had the actual story, in which they interviewed me for my credit card destruction video. The story part, of the "New Normal" series that they have been airing was called, Wackiest Ways to Destroy Your Credit Card.

Kevin Surbaugh, who runs a personal finance blog that he started when he first began to dig himself out of debt, said of credit cards, "They are a trap. They charge high interest rates."

So one day he and his friend, Sean Thornton, took out a gas-powered lawnmower and showed their credit cards who's boss.

"We both had credit cards we wanted to get rid of," Surbaugh said.

At one point, he had about $20,000 in credit card and automobile debt. Today, it is roughly $4,000, which Surbaugh plans to pay off by October.

On his plans for the extra cash when his debt disappears, he said, "Build my savings base. I've learned."

And thanks to his video of the lawnmower incident, others might also be learning.

As for Surbaugh, he has one credit card, which is nearly impossible to use: He keeps it in his bank's safe-deposit box.

See the complete story and related video by clicking here.

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The Youtube Credit Card Revolt

2009-06-20T05:03:00.001-05:00

Did you see ABC News last night? Are you here because of the ABC report? My video, where I destroyed not only my credit cards, but also those of a friend were part of a story on ABC News about unique ways to destroy credit cards.

The Youtube Credit Card Revolt

Surprisingly, they didn't edit out the name of my blog from the video clip that they showed.

They even had the phrase, "what's not in your wallet," still showing from the beginning of the video. Awesome collection of videos ABC was able to put together.

Shared via AddThis

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Date Night

2009-06-19T10:23:00.000-05:00

Wednesday night, I had a date with a beautiful woman. The first date occurred after months, and I do mean months of flirting between the two of us. After all, don't want to move to fast.

Overall, I think the date went well. I had won free tickets to see Land Of The Lost, so we went to see the 7:20 showing of that movie.

Before hand, we enjoyed a quick, but enjoyable meal at Chick-fil-a. Last time I was there everything was carry out, even if it was dine-in. This time, they had trays and asked if it would be dine-in or carry out.

I can certainly, say I'm looking forward to our next date. She is one terrific lady.

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Saving Money On Home Energy

2009-06-17T11:01:00.000-05:00

Devices that can help reduce energy usage?
1. Wrapping your water heater in an insulating blanket.
2. Surge protectors - is another great way to reduce energy.

Camille Martin (Camile): A lot of digital equipment (stereos, TV's, computers, etc) or anything with a display, light or some form of memory will use energy all the time while plugged in. If those devices were plugged into surge protectors, you can turn the strip off and reduce your energy bill.

Prince of Thrift (POT): What keeps the utility company from raising rates, because they are losing revenue, because of the reduction of energy use (that they are encouraging their customers to do)?

Tom Lienhard (TOM): Decoupling. Something that even President Obama has encouraged. Which, separates the delivery from the energy use, which forces the energy companies to find lower costs of energy production. If a company doesn't do this voluntarily, they will probably be forced to by the government.

POT: What about using battery powered devices instead of electrical?

Tom: Use of batteries would be way more expensive. Battery power would translate into about $5 per kilowatt hour (KWH), whereas electrical devices would only be (depending on your local area) about 7 cents/kWh.

POT: What about using the tankless water heaters?

Tom: A tankless, will cost about $700 more then a traditional water heater, and will save you about $80/year. Not very much, but when you consider a tankless lasts 2.5 times longer then a traditional water heater, and is paid for in the traditional heaters life span, then it is a huge savings in the long run.
Traditional water heater should be replaced every 10-years.
Tankless water heaters replacements are every 25-years.

Westar Energy in Topeka says that phantom load (or standby) accounts for ~5% of consumption in a US household.

That is why it is important to turn off computers, TV's and other devices when they are not in use. In addition, plug them into a surge protector and turn the power strip off to, to prevent using that standby energy that continues to cost us even though we aren't using it. Another tip, unplug your cell phone chargers when they aren't charging your phone(s). They have nothing to tell the transformers in them that their isn't a phone connected. Which means, it is still charging, even if a phone isn't connected.

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Organization Is Something We All Must Learn

2009-06-17T10:59:00.000-05:00

6 Steps to Get Organized For Financial Success

I am horrible at organization. My house is a mess. My filling system at the house is horrible. If you are like me, then we both have a big problem. The thing is, disorganization is a huge indicator of your financial life. The reason, if you can't keep your house tidy and organized, then chances are you can't keep your financial life very organized either.

If a person isn't organized financially a number of things can happen, they can bounce checks, exceed credit limits, pay bills late, get charged for stuff you didn't buy, be stressed over bills, go into perpetual debt (like most Americans), and even let fraud go unnoticed.

This is something, I have been making huge gains in over the last three years, but now I must get all of my life organized, otherwise I could easily fall back into the same trap again, despite my new knowledge. So, here are some tips that I have learned to help us all become more organized both personally and financially.

Filing system

Take care of the mail when it arrives

Use a computer and accounting software for your records

Pay bills on a specific day

Balance your checking account

Create a list of all bills and debts

Credit Card & Debt Management: A Step-By-Step How-To Guide for Organizing Debts & Saving Money on Interest Payments

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New Career? Financial Certification Next Step

2009-06-16T08:03:00.003-05:00

Today, I am going to take the first step towards my financial future. As many of you know, I have fallen in love with finances, since starting this blog. So much so, I have considered changing careers and going into the financial industry. Pretty amazing for this 40-year old guy, who grew up hating math in school.

Well, now I have a chance to get into the industry part time. Work it, during my free time away from my current full time job. Later today, I am going to their office and start the process. I will submit my application, and fill out the background information request. Upon paying the $99 background fee, they will check my background. If all goes well, I will be one step closer.

Once I am approved, I will then began studying to get all 3, yes all three of my financial licenses (mortgage, life insurance and securities). Once I get all three, and get my training, I will be able to help people in a much more meaningful way. Not only that, I can potentially do it full time and earn a paycheck.

Of course, commissions is no easy task, so I have already decided that my earnings will go into a special fund, and that they won't be used until the following year after they are earned. In other words, once I earn enough cash working part time to replace my full time job, I will be able to have the cash to live on while I devote full time to it.
There is a concern that I have of this background check. That is question number 5.

Have you, Within the last 10 years, made a compromise with creditor, been the subject of a bankruptcy petition, or had unsatisfied judgments or liens pending against you?

The answer is Yes, I have settled some of my debts in the past 10-years for less then the full amount due. So will, that prevent me from getting hired? I'm not sure, that's why it concerns me. Also my FICO is low, so will that hurt me to? Again not sure. Still, though, I am going for it. It is time to find out and take that step towards having my own business and in turn do something that I have grown to love. Helping people with their finances.

Does that mean I will stop doing this blog? No! It will just mean that I will be more personally qualified in my discussions here.

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New Office Is Almost Set-UP

2009-06-15T13:58:00.001-05:00

Some of you have noticed my absence last week. Hopefully, even more regularly then I have the past year. Well, I'm back. I spent much of last week, moving my home office out of my bedroom and into the spare bedroom, vacated by my previous roommate. However, as you will see in some future posts, I will be even busier. One of which will include a new part-time business venture.

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Homeless and living In Luxury

2009-06-04T08:32:00.001-05:00

No, I'm not talking about fraudsters standing on the corner, begging for money and then going home to a luxury condo, perse. Instead, it appears the City of New York, is using taxpayer money to house the homeless. House them in places that are better then the places most of us live in.

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No Message Left by Number In California

2009-06-02T13:18:00.000-05:00

My land line is through my cable company. Yesterday, I was looking at the call history online at their website, and I noticed that KMAX had called me last Thursday, when I wasn't home. They are CBS 13 in Sacramento. Anyone, know why they might have called my home phone (in Kansas)? A line that I do not give out? My cell phone is the number I give out publicly.

In other news, I expect to make some real progress on my debt this month. Keep an eye out. Watch it go down. See the image (chart) below for my current balance:

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Government Motors To Increase Unemployment Lines

2009-06-02T08:36:00.000-05:00

With the news that GM filed bankruptcy yesterday, we also learned that 14 plants will be closed. Others will be put on standby, which means they could reopen to assist in production, in the event of an increase in business. Thankfully, the Fairfax Assembly Plant in Kansas City, KS, isn’t among the 14 additional facilities GM will close. The Prince Of Thrift was able to obtain the complete list of plant closings. Please check out the list below:

Assembly

Orion, Mich.
Standby Capacity - September 2009

Pontiac, Mich.
Close - October 2009

Spring Hill, Tenn.
Standby Capacity - November 2009

Wilmington, Del.
Close - July 2009

Stamping

Grand Rapids, Mich.
Close - June 2009 (previously announced)

Indianapolis, Ind.
Close - December 2011

Mansfield, Ohio
Close - June 2010

Pontiac, Mich.
Standby Capacity - December 2010

Powertrain

Livonia Engine, Mich.
Close - June 2010

Flint North Components, Mich.
Close - December 2010

Willow Run Site, Mich.
Close - December 2010

Parma Components, Ohio
Close - December 2010

Fredericksburg Components, Virg.
Close - December 2010

Massena Castings, N.Y.
Closed - May 1, 2009 (previously announced)

Service & Parts Operations (SPO)
Warehousing & Parts Distribution Centers

Boston, Mass.
Close – December 31, 2009

Jacksonville, Fla.
Close – December 31, 2009

Columbus, Ohio
Close – December 31, 2009

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Complete Idiot's Guide To P2p Lending

2009-05-28T09:30:00.003-05:00

I recently received the "Complete Idiot's Guide to Person-to-Person Lending" by Curtis E. Arnold and Beverly Blair Harzog. I found the book to be a very informative introduction to the new phenomenon known as person-to-person (p2p) lending. The book is broken into 4 parts, the basics of person-to-person lending, prime-time players in the P2P marketplace, borrowing money, and lending money.

The basic concept as described in the book was what I thought everyone on the net already knew. But, sometimes I think everyone knows, just because I do. That of course isn't always true. P2P is a simple concept. If you are a lender, you choose borrowers who you want to help. There is no bank involved, it is just simply people lending to other people. Say someone wants to borrow $1,000. One person can bid (in a sort of auction format) to loan them the money or 20 people can put in $50 each to the loan the person the $1,000. The site that you use, acts as the transfer agent (and help keeps everyone's names private). The site also acts as the collection agent, if that become necessary.

I mentioned bid, because each of the lenders say how much they are willing to loan to an individual and at what interest rate(depending on the particular borrowers published credit rank). The lower collective interest rates will be the borrowers interest rate, while the winning lender(s) receive interest on the amount they loaned.

There is some differences, between each of the p2p players. To many in fact to to list here, besides it would be a disservice to the books authors, if I spelled it out for you. Instead, I will list the various players (according to the book) and recommend that you buy the book )or borrow it from your local library).

So who are the players?

Prosper.com is probably the best known of all the players.
Kiva.org's mission is to connect people through lending for the sake of alleviating poverty. However lenders don't earn interest on their money, so this is totally lending from your heart. Kiva.org is also a 501c3 non-profit.
Microplace.com
VirginMoneyUS.com
LoanBack.com
Nolo.com
LendingClub.com
GlobeFunder.com
Loanio.com

Fynanz.com has a deferred payment option, which requires a monthly $25 "good faith" payment. Another option is the interest only option, while you are in school. Either way the interest may be deductible as it is an educational expense.

GreenNote.com also specializes in student loans.

Over all, I found the book to be very informative and have no problem recommending my readers to read this book also. It will be a valuable reference book in my financial library. One that I will be sure to use as I move closer to investing some of my money through such p2p lending.
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NYTimes.com: Guide to New Credit Card Rules

2009-05-26T09:31:00.004-05:00

Message from sender:
I found a video, that gives very detailed information on the credit card bill of rights that passed last week. Take a look.

YOUR-MONEY | December 31, 1969
Video Library Player: Guide to New Credit Card Rules
New York Times columnist Ron Lieber finds that there is some cause for concern in the sweeping credit card legislation that passed the Senate on Tuesday.

1. The Case for Working With Your Hands
2. Texting May Be Taking a Toll
3. Op-Ed Columnist: State of Paralysis
4. Dear Donna: A Pinup So Swell She Kept G.I. Mail
5. Brain Power: At the Bridge Table, Clues to a Lucid Old Age

» Go to Complete List



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7 Steps To A 720 Credit Score Is Bull!

2009-05-21T11:04:00.001-05:00

I received a copy of Philip Tirone's set of books, 7 Steps To A 720 Credit Score. Looking forward to reading it and giving it an honest review.

That became harder for me to do, when I started receiving call from them. The first call even offered me an affiliate marketing business opportunity. They however, decided I wasn't qualified, because I wouldn't urge people to get credit. Though they tried, I would not budge and was able to refute every argument they tried to throw at me. Especially, when they tried to tell me that I needed a credit card for when I travel. In their reasoning, if my debit card was stolen, my entire account could be cleaned out. Where, I would be "protected" with a credit card.

I informed them that less then 1% of Americans get mugged, so that was an unlikely scenario. Further, I have a separate account, that is specifically for travel. So, because of that my regular checking would not be bothered.

When I finally did get a chance to start reading the books, I couldn't discount everything. Especially, if one wanted to maintain a credit score, to purchase their first home. Which is the only debt, Dave Ramsey agrees to let his listeners go into. Personally, I believe (and I think Ramsey does to) that if you move up in house, it should be paid for with cash (from savings and/or the sell of the first home).
I started by reading, "Managing your credit after a financial crisis." Immediately upon starting the booklet, I started saying "bull."

you might be inclined to wipe your hands clean of credit, shred your credit cards, and become a cash only citizen.

But this attitude will only complicate matters. Because limited credit is as detrimental as bad credit, cash-only citizens have problems buying a home, financing a vacation, or purchasing a car....wiping your hands of credit is the last thing you want to do.

See, why I was saying, "bull?" If you are "financing," a vacation, you are stupid. You have no business taking a vacation, if you can't afford to pay cash for the trip. The same is true for a car purchase. If you have to borrow, you are buying more car then you can afford. Plan and simple. "Cash-only citizens," have no trouble at all to buy a car that they can afford from their savings. Besides, by not buying on credit, they only pay for it once. Whereas the person buying on credit, ends up paying twice as much over the life of the loan.

So what are the 7 steps?

Keep your Credit Card balances under 30% of your credit limit.
Well, if you are going to have a balance, that is pretty good advice.

Have at least 3 revolving credit lines.

Verify the accuracy of your reported credit limits.

Have at least one "Helpful" active or Paid installment loan on your credit Report.

Remove all high-priority errors from your credit report.

Negotiate before paying a bill in collections.

Create a structured plan to protect your credit.

This plan according to Tirone should include:

Create a budget and spend frugally.
Keep your bills current.
Review your credit card bills and bank statements monthly.
Pull your credit report and review the 7 steps.
Avoid being a co-signer
Keep your credit card accounts active
Protect your credit during and after a divorce.
If married, establish credit separately.

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17 Things You Can Do to Save Energy and Money

2009-05-20T10:29:00.002-05:00

By the time thi article posts, I will be in the air, on the first leg of my trip to Spokane, WA. I will be attending a Neighborhoods USA (NUSA) Conference, and while there, one of the topics that will be discussed will be "Green issues." With that thought in mind, I thought these money saving and Eco-friendly ideas would be of interest. Love to hear your ideas to.

Insulate your walls and ceilings
Modernize your windows
Plant shade trees and paint your house a light color if you live in a warm climate, or a dark color if you live in a cold climate.
Weatherize your home or apartment, using caulk and weather stripping to plug air leaks around doors and windows.
Turn your refrigerator down.

Use Warm or Cold water rather then Hot, when doing laundry
Make sure your dishwasher is full when you run it and use the energy saving setting, if available, to allow the dishes to air dry.
Turn your water heater down to 120 degrees F.
Replace your old appliances with the most energy efficient ones you can find.
Wrap your water heater in an insulating jacket.
use energy efficient CFL light bulbs.
Clean or replace air filters as recommended
Heating and cooling
Winter settings: 68 F - Daytime /55 degrees - night
Summer settings: keep it at 78 degrees
Use less hot water by installing low-flow shower heads. (or use a shower timer to curtail lengthy showers. example A and example B)
Whenever possible, walk, bike, car pool, or use mass transit.
When you next buy a car, choose one that gets better mileage.
Buy minimally packaged goods, choose reusable products over disposable ones, and recycling, to reduce waste.

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