DEBTSMART® EMAIL NEWSLETTER
ISSN 1538-6740
October 8, 2003 Issue 61

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

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You are subscribed as post@debtsmart.com For instructions to SUBSCRIBE or UNSUBSCRIBE, and DISCLAIMER, see bottom of this email.

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IN THIS ISSUE

==> Cool Quote

==> Letter from the Publisher

==> Circle Magazine Review

==> Weekly or monthly payments?

==> Household Math™: Early Mortgage Payoff

==> Survey Results: Splitting the bill

==> What about Ben Franklin?

==> DebtSmart® Help Center

==> Always check your credit report

==> How to get your children "brand free"

==> DebtSmart® Resources

==> Subscribe/Unsubscribe/Disclaimer Information

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COOL QUOTE

MONEY ISN'T EVERYTHING: “But it's reasonably close to oxygen!”
--Zig Ziglar

Click below for quotes from all previous newsletters:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?04&7428

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LETTER FROM THE PUBLISHER
by Scott Bilker

Hi,

I apologize for the delay in sending you this issue. This email newsletter was supposed to be sent on 9/24/03. The issue couldn’t be sent because technical issues caused DebtSmart to require a new hosting company. Everything should be fine now. Please let me know if you have any problems reading the email newsletter.

If you have kids, or are a kid, I’m sure you’re already back in the groove with the new school year. Many students have said to me over the years, “What am I going to use math for in the real world? I don’t want to be an Engineer!”

My response used to be “You will use it with your money! You need to have an understanding of how to compare your future financial options, mathematically, so you can make the right choices.”

I need to amend this with a second statement, “In new world- economy the good job will go to the people that have college degrees. To get into college you must know higher level math. It’s that simple.”

Regards,
Scott
PS: For all you “Woman’s World” readers, there’s an article I worked on with their writers in the “Ask the money expert” section, page 22, 10/14/03 issue, titled, “Will the new low-rate- for-life credit cards save me money?”

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CIRCLE MAGAZINE REVIEW
by Victoria Acroyear

“....before I start singing the praises of Mr. Bilker's prose style, or his innovative use of trochees and spondees in the anapestic diptych (or whatever), I must admit that when I picked up this nattily turned-out trade paperback, I wasn't exactly expecting William Morris's The Life and Death of Jason....What I did get was a surprisingly witty and to all appearances effective how-to manual for hoodwinking these bloated social parasites that we now know of by the euphemism "banks" into cutting us a little slice of economic justice now and then. Granted, the power is entirely on the side of the large financial institutions, such that Mr. Bilker's winning tactics often shed their savor of victory in a larger context....with the help of Mr. Bilker's book, one can fight a series of strategic rearguard actions, and manage to cut one's losses a bit. After all, there's no sense in completely rolling over and playing dead -- before it's time, anyway.”

Click below to read more:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?05&7428

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WEEKLY OR MONTHLY PAYMENTS
By Scott Bilker

Scott, I have a $6,500 signature loan @ 13.5% APR with my credit union. My min payment is $230.28; I always pay $321. There is no pre- payment penalty. Thought the payments are due at the end of the month, I try to pay as close to the first of the month as possible, to pay the least amount of interest on the loan. A friend of mine said I should divide my payment over four weeks. Do I save more to pay a lump sum at the beginning of each month; or does it benefit me to pay equal weekly installments on the loan; like 81/wk?
--Brian

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?06&7428

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HOUSEHOLD MATH™

EARLY MORTGAGE PAYOFF
By Scott Bilker

This problem submitted by DebtSmart® reader Sofia Dailey.

Assume a person is buying a $150,000 home at a rate of 7% interest on a 30-year loan, with the usual 20% down payment (so the loan would be $120,000). This person also has $20,000 in cash reserves. In which of these two scenarios would this person end up paying less money over the course of the loan?

1) Putting down the $20,000 as a down payment, increasing the down payment to $50,000, and lowering the loan amount to $100,000

2) Taking out a $120,000 loan at 7% and then putting the $20,000 as a first payment towards that loan.

3) Both (1) and (2) are exactly the same.

Click below to solve problem:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?07&7428

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SPLITTING THE BILL
by Scott Bilker

Last issue we did a survey about dining out with friends and splitting the bill.

I’m sure you’ve all gone out to dinner with friends and have been in the situation of splitting the bill. I usually charge it and the other party has given me the cash, thus giving me a no-fee cash advance on my credit card. However, it was just brought to my attention that the waitress can split the bill using your credit cards.

All parties on the tab simply hand in their credit card and the waitress divides the total by the number of credit cards and charges each by that that amount. I never knew about this.

Am I the last to know about the payment option for dining out?

Find out what DebtSmart Reader’s said by clicking below:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?08&7428

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WHAT ABOUT BEN FRANKLIN?
by Doris Dobkins

I was reading a book to my kids this week called "The Value of Saving". It was the story of Benjamin Franklin. When Ben was a little boy of around 8 years old, he was already thinking of things to invent that would save him time and money so he would have more of both. One day when he was walking along the sidewalk he found a...

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?09&7428

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DEBTSMART HELP CENTER
By Scott Bilker

Helping you with your debt is very important to me personally! If you've been reading my articles, you know that I always encourage self-help as a first step. However, being buried in debt can be very overwhelming, which is why you may want to explore other options.

One of those options is professional, ongoing help with credit counselors. I've started to personally check out certain companies so I can recommend the ones that are worth considering!

If you would like to speak with a representative from a...

Click below to read more:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?10&7428

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ALWAYS CHECK YOUR CREDIT REPORT
by Scott Bilker

I cannot stress enough the importance of periodically checking your credit report! Banks are not the only ones that look at this “financial résumé.” Employers, insurance companies, and many other people will pass judgement on you based on your credit history.

You want to make sure that there are no errors in these reports...

Click below to read more:
http://www.debtsmart.com/cgi-pl/go/031008_en.cgi?11&7428

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HOW TO GET YOUR CHILDREN "BRAND FREE"
By Gregory Thomas

Those of you that have children know what an excursion to the local mall or supermarket can be like. If you're not careful, this simple trip can easily become a wallet draining experience.

How often have you heard: "I want Luchables because EVERYONE eats them at lunch"; "Come on mom, these cool pants only cost $80."

Click below to read article:
http://www.debtsmart.com/cgi-pl/go/031008_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/031008_en.cgi?01&7428

Archive of DebtSmart® Email Newsletters online:
http://www.debtsmart.com/cgi-pl/go/031008_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/031008_en.cgi?03&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 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 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.

Copyright © 2003 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.