DEBTSMART® EMAIL NEWSLETTER
ISSN 1538-6740
October 9, 2002 Issue 36

Tools for financial success!
A Free E-Mail Newsletter from DebtSmart® Online and Press One Publishing.

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Publisher: Scott Bilker, mailto:publisher@debtsmart.com
Editor: Richard Crammer, mailto:editor@debtsmart.com 

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For instructions to SUBSCRIBE, and DISCLAIMER, see bottom of this email.

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IN THIS ISSUE

==> Cool Quote

==> Letter from the Publisher

==> Equity Used For Down Payment

==> Household Math™: A Penny Paid is More than a Penny Earned

==> Survey: Lending to Friends

==> Living on the Edge

==> Toy Teaches Kids to Save

==> Signs of Wealth

==> Eight Steps to Tackle the Money-Saving Process

==> Your Agreements Show Your Integrity

==> DebtSmart® Resources

==> Subscribe/Disclaimer Information

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COOL QUOTE

"Destiny is not a matter of chance, it is a matter of choice."
--William Jennings Bryan

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LETTER FROM THE PUBLISHER 
by Scott Bilker

Hello DebtSmart Friends,

There is definitely a national credit crisis on the horizon! Consumer credit is rising, late payments and defaults are up, and foreclosures are also increasing. Housing prices are skyrocketing, which means new homebuyers will be paying a huge monthly payment for their mortgage. The only good news is that mortgage interest rates are quite low.

Because of the increased costs of borrowing from credit cards, many "experts" recommend borrowing money from friends and family. This can, of course, be quite dangerous. Please let me know your thoughts about lending to your close friends and family members in this issue's survey.

As always, thanks for adding your philosophical perspectives to the last survey, "Life is too short to..." You can see the original article, survey, and your comments by going to:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?04&7428 

Regards, 
Scott

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EQUITY USED FOR DOWN PAYMENT 
by Scott Bilker

Scott, Here's my question. My husband and I want to buy a home being built in a new development. Our present home worth $260,000 has no mortgage except a $30,000 home equity loan. We need about $15,000 down payment for the home being built. Should we open a home-equity line of credit to pay the down payment? We will be selling our existing home so everything will be paid back at the settlement. If not, where is the best place to get the $15,000? We have several credit cards with 0 balances. Should we take a cash advance on one of those? Thanks. 
--Marian

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?05&7428 

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HOUSEHOLD MATH™: A PENNY PAID IS MORE THAN A PENNY EARNED

How much is a penny really worth? When it comes to repaying debt it is certainly true that every penny counts! Say you have a $100,000 mortgage at 7% for 30 years. The monthly payment is $665.30. How much money would you save by adding just one cent to your monthly payment?

Click below to take the quiz:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?06&7428 

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SURVEY: LENDING TO FRIENDS

This is always such a tough call. What do you do when your friends ask for money? If they don't repay are you angry about losing the cash or the trust you had in your friend's promise?

Please let me know what you think of lending and borrowing from friends and family in this issue's survey.

Click below to respond to survey:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?07&7428 

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LIVING ON THE EDGE 
by Doris Dobkins

What is your lifestyle like? Do you sometimes feel like your finances are out of control and you are living on the edge? Our lifestyle today has become one of "buy and charge." Society pounds this message incessantly, wherever you turn. It is even easier for us to make money than to keep it.

Today, families are living more and more on the edge. "Household borrowing has risen almost 60% to $6.5 trillion in the past five years." The Wall Street Journal, July 5, 2000. Most of us don't even think twice about...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?08&7428 

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TOY TEACHES KIDS TO SAVE 
by Scott Bilker

I just got this great savings bank for my son who is really interested in money. It's the ATM Savings Bank. This cool, and modern toy bank works just like a real ATM machine. It allows coin and cash deposit, tracks the amount of money in the bank, and more.

My kids like it so much that I decided to get a few and offer them to all of you. Check it out!

Click below read more the ATM Savings Bank:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?09&7428 

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SIGNS OF WEALTH 
by Gary Foreman

Everyone from songwriters to psychics to traffic engineers will tell you that it's important to "read the signs." And they're right. Take driving for instance. Traveling without signs would be difficult and dangerous.

Our financial affairs are another type of trip that requires watching signs. To help us avoid trouble and make progress towards our goals. So let's take a look at some common financial road signs.

The "Stop" Sign. Sometimes the best thing you can do is to...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?10&7428 

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EIGHT STEPS TO TACKLE THE MONEY-SAVING PROCESS 
By Gregory Thomas

Part 5: Weighing the Cost, Risks, and Benefits

In addition to lowering your monthly bills and expenditures, you need to look at your shopping/spending habits and determine if any changes need to be made.

This is extremely important for a number of...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?11&7428 

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YOUR AGREEMENTS SHOW YOUR INTEGRITY 
by Michael Angier

Except for disease and climatic disasters, I believe that over 90 percent of the world's problems result from people not keeping their agreements.

Think about it. From countries to corporations to families and...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?12&7428 

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DEBTSMART® RESOURCES

DebtSmart® Books, software, reports, in-print and downloads:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?01&7428

Archive of DebtSmart® Email Newsletters online:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?02&7428 

How to use DebtSmart® articles FREE in your e-zine or on your web site:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?03&7428 

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HOW TO SUBSCRIBE TO THIS NEWSLETTER

All recipients of DEBTSMART® EMAIL NEWSLETTER have signed up voluntarily for the newsletter via our website.

TO SUBSCRIBE to this newsletter click on the below link and complete the subscription form:
http://www.debtsmart.com/cgi-pl/go/021009_en.cgi?00&7428 

Please contact mailto:comments@debtsmart.com with any comments, problems, or concerns.

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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 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.

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Copyright © 2002 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.