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DEBTSMART® EMAIL NEWSLETTER 
ISSN 1538-6740 
January 28, 2004 Issue 67

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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IN THIS ISSUE

==> Cool Quote

==> Letter from the Publisher

==> Reader Tip

==> Penalty Rates

==> Household Math™: Auto Loan Rates

==> Budgeting when Your Paycheck Varies

==> DebtSmart Help Center

==> Always Check Your Credit Report

==> How is Your Automotive Aptitude? Take the Car Quiz!

==> DebtSmart® Resources

==> Subscribe/Unsubscribe/Disclaimer Information

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COOL QUOTE

“If you don’t know where you’re going, then any path will get you there.” --Sioux proverb

Click below for quotes from all previous newsletters: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?04&7428

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LETTER FROM THE PUBLISHER 
by Scott Bilker

Hi,

Wow! This year is really flying by already! I cannot believe that January is almost over.

One thing that hasn’t changed is that the bills are piling up in the mail. Holy! I receive an incredible stack-o-bills nearly every day. I’ll have to do a survey with you on that topic sometime.

Last week I spoke to reporters from BankRate.com, CBS Marketwatch, and NBC Nightly News about penalty rates. And in this issue I’ll be answering a reader’s question on this very topic. Although these high interest rates have been used against us in the past, it seems that people are finally starting to feel their effects, certainly enough to attract attention from the major media.

Question to ask yourself today: “What can I do to put an extra $20 toward my debt today?”

Regards, 
Scott

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READER TIP

Scott,

I have a Providian Credit Card and in my statement today was an “Important Notice of Changes to Your Account Agreement.” Among other items is the “if your balance is $200 or greater, the late fees we may charge are $39.”

After a “holding close call,” I decided I didn't want to play that game, so now I send my payment “Certified Mail” requesting a signature and return notification. Amazingly, it is only taking my payments 3 days to get there and be posted to my account like it did before. :-)

Thought you might like to know.

Diana

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PENALTY RATES 
by Scott Bilker

Scott, My interest was raised to 28% after “a few” (honestly) late payments. They told me they would review my info in 6 months. Do you think I have a chance of getting them to lower my rate? --Paula

Paula,

What’s happened to you, and many, many others, falls under the “Penalty Rate” or “Default Rate” clause in your credit card agreement. In the mid- to late-90’s I started receiving Change of Terms Notices from many credit card banks informing me that if I missed a couple payments they’d raise my rate to 29.99% or even higher!

Today, I believe that most, if not all,...

Click below to read article: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?05&7428

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HOUSEHOLD MATH™

AUTO LOAN RATE 
by Scott Bilker

Mary Jane borrowed $9,200 to buy a used car. She made equal monthly payments for 3 years and that paid off the loan in full. After that time she added up how much she paid in total to the loan. She was surprised to find that 14.81% of the total amount she paid back over the course of 3 years were interest charges for the loan! What was Mary Jane’s APR for this loan?

Click below to solve problem: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?06&7428

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BUDGETING WHEN YOUR PAYCHECK VARIES 
by Terry Rigg

How can you decide how much you have for bills and expenses when your paycheck varies from one payday to the next? That's a question a lot of people struggle with.

A few of the occupations that I can think of off hand that could fall into this category are waitresses or waiters working for salary and tips, truck drivers that are paid by the mile and never know how many miles they are going to get, the self- employed whose business income varies from season to season, and the list could go on.

Trying to manage your finances with a steady income is hard enough, but when you never know what your paycheck will be, it seems almost impossible, but it's not. It is, however, going to be a little more tricky.

Click below to read article: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?07&7428

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DEBTSMART HELP CENTER 
By Scott Bilker

Hi,

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/040128_en.cgi?08&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/040128_en.cgi?9&7428

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HOW IS YOUR AUTOMOTIVE APTITUDE? TAKE THE CAR QUIZ! 
by Craig Kimmel

Buying a car can be both exciting and intimidating. You land on the lot, looking to get behind the wheel of the shiny new SUV -- convertible--sedan--sportscar you had seen in the flashy TV commercial. Oh, wow...they have the color you want, with the features you want....it is a match made in heaven! Sign me up, I am ready to ride home in my dream car, right? WRONG! STOP! Take a breath. Aside from a home, this is going to be one of the largest purchases you make. The wrong choice could spell disaster for you down the road, while if you know what you are doing, you could find yourself on Easy Street.

To test your automotive aptitude, I have put together a 10- question quiz on car buying and consumer rights, based on the myths and misconceptions we hear the most. Take out a number 2 pencil and see how well you fare:

TRUE OR FALSE

1) If I buy a car and something goes wrong with it, I have three days to return the car. It's a law.

Click below to read article: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?10&7428

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DEBTSMART® RESOURCES

DebtSmart® Books, software, reports, in-print and downloads: 
http://www.debtsmart.com/cgi-pl/go/040128_en.cgi?01&7428

Archive of DebtSmart® Email Newsletters online: 
http://www.debtsmart.com/cgi-pl/go/040128_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/040128_en.cgi?03&7428

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HOW TO SUBSCRIBE OR UNSUBSCRIBE FROM 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/040128_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 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 © 2004 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.