DEBTSMART® EMAIL NEWSLETTER
ISSN 1538-6740
October 23, 2002 Issue 37

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

==> Helping Daughter With Debt

==> Household Math™: Pizza Deals

==> Survey: Worst Buying Decisions

==> Money And Integrity

==> Living Within Your Means--The Easy Way, By Terry Rigg

==> Temporary Downsizing?

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

==> Money Management

==> DebtSmart® Resources

==> Subscribe/Disclaimer Information

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COOL QUOTE

Jonathan Kent: "Clark Kent, you stole from us!"

Clark Kent: "No, I used your credit cards!"

(Clark goes on a buying spree in Metropolis at his parents' expense after being exposed to red kryptonite.)

--WB's, "Smallville," aired 10/15/02

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LETTER FROM THE PUBLISHER 
by Scott Bilker

Hi,

Great survey results from last issue! The survey was about Lending To and Borrowing from Family and Friends.

Here are few interesting results: 1) 70% report that they've lent to family with only 38% saying they were paid back in full. However, when asked if they'd lend money again 59% said yes! 2) 59% reported lending money to a friend and 27% were paid back in full, but when asked if they'd do it again 37% said yes. This indicates to me that overall, lending to family has worked out better than lending to friends. 3) The "no's" have it when questioned about working with a third party to manage loans between family and friends (about 65%). 4) The majority agree on both the borrowing and lending sides that it is fair to charge and repay interest fees when lending or borrowing from family and friends. 5) 40% said that a reasonable amount to charge for interest is between 4% and 8%.

You can read all the survey results by clicking below:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?04&7428 

Are you working as a phone rep for a bank? Have you ever worked as a phone rep for a bank? I'd love to interview you, anonymously of course, to learn about the tricks of the trade. Please write to me at publisher@debtsmart.com with some of your story plus your phone number and the best time to call.

Regards, 
Scott

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HELPING DAUGHTER WITH DEBT
by Scott Bilker

Scott, Our daughter, who is 31 and single, has $15,000 in credit card debt that would we like to help her get out from under. This debt consists of two different maxed out credit card accounts that are both charging very high interest rates, as well as late charges and over the limit fees. We are considering refinancing our mortgage, which currently has a balance of $47,000 and a 5.75% rate. We will continue to make the same payments we're making now, and she will make the additional amount needed to pay off the loan in about 6 years. That way she would not have any debt showing up under her name, and we would be able to take the additional interest off as a tax deduction. Even though there would be closing costs involved on a refinance, I still feel that those charges would be less than the interest on the credit cards over the long term. Is this a good solution or not? By the way, we have had several lengthy discussions with her about how to manage her finances and also purchased your "How to be more credit card and debt smart" manual for her. 
--Anna

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?05&7428 

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HOUSEHOLD MATH™: PIZZA DEALS

Ann and Sharon are good friends each with a son that has the same birthday. They're going to have a birthday party for both of them together and decide to serve pizza. There are three sizes available small (11 inch) for $7.95, medium (15 inch) for $12.95, and jumbo (17 inch) for $16.95. Based solely on the size and price which size pizza is the best deal?

Click below to solve problem:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?06&7428 

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SURVEY: WORST BUYING DECISION.

I'm frequently asked about "good debt" and "bad debt." Actually, there's no such animal. There is simply DEBT. There are however, good buying decisions and bad buying decisions. Buying your home is probably a good buying decision. Buying a new Audi Mazzerat, for people with an average income, is probably a bad buying decision.

This week I'd like to ask you what your worst buying decision has been? Leasing a car? Furniture? Electronics? Bad investment?

Click below to respond to survey:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?07&7428 

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MONEY AND INTEGRITY 
by Chris Peruzzi

Have I mentioned to you that I'm monetarily motivated?

No? Well, I am.

I'm for sale to the highest bidder, or the not so highest bidder, or the person who will give me what I need when I need it. I love money. I think the people who say that money can't buy happiness don't know where to shop. Actually, money can't buy happiness, but I am certain it can be rented.

Believe me, I know that about 80% of my problems could be solved with cash and I am not above saying so. However, I am also a great believer in personal...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?08&7428 

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LIVING WITHIN YOUR MEANS--THE EASY WAY, BY TERRY RIGG
Review by Scott Bilker

We all know Terry. He's written many excellent and informative articles for DebtSmart. Terry recently contacted me and said he's reducing the cost of his popular online book, "Living Within Your Means--The Easy Way" to only $5!

I personally found the online book packed with great information! Terry covers many topics with an easy-to-understand approach. Some of the numerous topics covered include: (1) Organizing Your Bills and Files, (2) Good Spending and Saving Habits (3) How to Deal with Debt, (4) What to do About Big Money Problems, plus whole lot more.

Terry includes worksheets, links to helpful web sites, and even how you can become a stay-at-home mom!

Click below to read more about Terry's book:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?09&7428 

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TEMPORARY DOWNSIZING 
by Gary Foreman

Hi Gary, We're wondering if we should sell our house. My husband recently returned to school to get his degree, which will take two years of full time school. He's working part time while he's in school and I work full time as a social worker.

Our mortgage payment is $1,030 a month--no problem when we were both working full time. Now that his income has been drastically reduced, the mortgage feels very steep. What about selling the house, using the equity to pay off our $20,000 second mortgage, and moving into a place that costs less per month? Rental costs in Denver are high, at $750+ for a two bedroom apartment. Is it smart to use your big asset to pay off debt and "slim down" for a few years, or is it stupid to give up a chance to continue earning equity? 
--Erin K.

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?10&7428 

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

Part 6: Implement a "Game" Mentality

Now that you have a goal to strive for, a list of variable bills to lower, and an understanding as to why it's important to compare cost, risks, and benefits before making a purchase, you're now ready to CHALLENGE yourself to succeed.

Are you wondering how you are supposed to...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021023_en.cgi?11&7428 

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MONEY MANAGEMENT 
by Doris Dobkins

Are you good at handling money? Are you good at money management? Do you have self-control? How's your attitude towards money? Robert J. Hastings wrote, "Money management is basically...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/021023_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/021023_en.cgi?01&7428 

Archive of DebtSmart® Email Newsletters online:
http://www.debtsmart.com/cgi-pl/go/021023_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/021023_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/021023_en.cgi?00&7428 

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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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