DebtSmart® Email Newsletter

ISSN 1538-6740
July 28, 2004 Issue 79

Tools for financial success! A Free Email Newsletter from DebtSmart Online and Press One Publishing.

Publisher: Scott Bilker

In this Issue

	Cool Quote
	Letter from the Publisher
	Manipulating the System
	Household Math™: Fast Pay Mortgage
	Inspired to Call for a Reduction in APR
	President Bush Signs Identity Theft Penalty Enhancement Act
	Johnny May’s Guide to Preventing Identity Theft
	DebtSmart Help Center
	Biweekly Mortgages: A Reader's Personal Story
	DebtSmart® Resources
	Subscribe/Unsubscribe/Disclaimer Information

Cool Quote

"Like other forms of stealing, identity theft leaves the victim poor and feeling terribly violated."
--President George W. Bush

Quotes from all previous newsletters

Letter from the Publisher 
by Scott Bilker

Hi,

Check it out...DebtSmart Reader, Jill King, saves $1,000 a year after reading my book and is featured in the August Issue of Money magazine on newsstands today!

Thanks to everyone for responding to the surveys. The results are in and I’m listening. You should have received another email today saying that the email newsletter is converting to be HTML only. More than 80 percent of respondents prefer HTML and 60 percent of those that preferred the TEXT version could read the HTML version.

I’m in the process of converting everything over to an HTML based newsletter. This will take a few weeks because I do all the programming in PERL myself.

Also I’m working on redoing how subscribers sign up for the email newsletter. This will also allow you to change your email address without having to re-subscribe, update your personal details, etc.

The results of the survey, regarding phone consultation services, were mixed. About one third (55 people) are interested enough that they want me to contact them when I’m ready to do it. People’s comments ranged from criticizing me for taking advantage of those in debt, to saying that I’m crazy for offering it for too low a price and that I’d be taken advantage of because of the guarantee.

Overall, I feel that I could help quite a few people, so I will offer this at some point in the future--don’t know when just yet. When I think of offering financial advice, I realize that one must be ready to make a change in understanding that the proper advice is valuable.

In the best-selling book, "The Millionaire Next Door," Stanley and Danko point out that big-spenders, low net-worth people, have no problem paying for expensive stuff (cars, home, etc.) but are quite frugal when purchasing advice. For example, selecting accountants or lawyers based solely on price. "In sharp contrast, most wealthy people feel that you get what you pay for in the realm of financial advice."

Regards,
Scott

Manipulating the System
by Scott Bilker

It's Friday night and the phone rings... you know the call, it's late, the last bite of my dinner being chewed, all you want to do is watch TV and relax. Guess who's calling? Yes, it's a mortgage company that's trying to sell me a refinance deal!

The girl asks me about my mortgage, my rates, and my credit card debts.  I do reply, after all, I'm always curious about getting a better loan (plus I love toying with these people).

Finish Reading Article

Household Math™: Fast Pay Mortgage
by Scott Bilker

You have a $100,000 mortgage at 6% APR for 15 years. How many extra monthly payments must you send each year to be able to pay off this loan in exactly 5 years? Note: All the extra payments are sent along with the year’s last monthly payment.

Answer this problem

Inspired to Call for a Reduction in APR

Hi Scott,

Just got your books and was inspired to call my major credit card to ask for a reduction in APR. The current rate is variable 12.74%; with a $10000 balance that's costing more than $100 per month in interest. They reduced that rate to 9.9% with no discussion. (Not great, but better than it was.) Then I asked about the 19.74% rate on cash advances. That balance is only about $500, but the rate seems unnecessarily high. That one they refused to reduce.

But here's where I really benefited from having read your book: In talking about that rate, the account supervisor told me they will wire cash advances to my bank account for only 2.99% APR. They will provide as much as $10K per month. So, I could reduce the 19.74% rate to 2.99% rate by having the money wired to my bank and then writing a check to pay off the entire balance! (I have enough credit available on the card.) Amazing - they told me how to save money.

So, I just wanted to say that I feel I've already gotten my $19.95 worth from your books.

Here's my next step: The card, which dropped its rate for me is a frequent flyer miles card (that's why I use it). They just charged me the annual $59 "membership" fee. I am going to ask them to refund the fee. I have a 2.99% transfer offer for another card, which I never use (so it has no balance). I'm going to tell them I will transfer the balance from the "miles" card to the 2.99% offer-card unless they drop the fee. After they drop the fee, I might transfer anyway!

Thanks,
Kathy

Read more about Scott's books

President Bush Signs Identity Theft Penalty Enhancement Act
President George W. Bush

We're taking an important step today to combat the problem of identity theft, one of the fastest growing financial crimes in our nation. Last year alone, nearly 10 million Americans had their identities stolen by criminals who rob them and the nation's businesses of nearly $50 billion through fraudulent transactions. The bill I'm about to sign sends a clear message that a person who violates another's financial privacy will be punished.

The Identity Theft Penalty Enhancement Act also prescribes prison sentences for those who use identity theft to commit other crimes, including terrorism. It reflects our government's resolve to answer serious offenses with serious penalties.

Finish Reading Article

"Johnny May's Guide to Preventing Identity Theft"
Book review by Scott Bilker

If you didn't see the last issue, I wanted to run this by you one more time because of recent news about ID Theft...

Johnny May's new book, from start to finish, is the definitive guide to identity theft! Johnny has done a great job explaining, in easy-to-understand language, how to recognize and prevent this growing crime with 27.3 million victims in the last five years.

What motivates the identity thief? Money certainly, however, revenge is another reason to worry. Needing a fresh start with their credit can also be the incentive for many identity thieves who create that start at our expense.

Johnny is an expert in all areas of security. He holds a Bachelor of Science in Criminal Justice and a Master's Degree in Security Administration from the University of Detroit-Mercy. He spends most of his time teaching people and companies how to protect themselves and what to do if they become victims.

Johnny provides many tips for individuals and businesses to guard important information used in identity theft, not only for using technology, but also in the real world. For example, Johnny advises that "Tip 18. To avoid pickpockets, men should carry wallets in a front pocket. Another idea is to place a rubber band around the wallet so it will rub against the cloth, providing an alert that a crime is in progress. You can also place your wallet in your pocket sideways, making it more difficult to get the wallet out of your pocket."

I also found the cases included in chapter 9 to be quite interesting. Reading the one-paragraph descriptions of these incidents will help you become more focused on preventing ID theft. For example, "A 34-year-old surgeon had her purse stolen from a locked desk at the hospital where she was employed. She quickly canceled her credit cards and checks. About two years later she received a phone call from a collection agency about an overdue account of $3,500 from an out-of-state jewelry store. A copy of her credit report revealed that almost $30,000 worth of jewelry, roaming cell phone charges, and department store charges had been made in her name."

Today's criminals are after much more than the cash in your wallet! I would urge everyone to read this book and put Johnny's advice to work right away!

Read more about Johnny's book

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...

Read More at the DebtSmart Help Center

Biweekly Mortgages: A Reader's Personal Story
by Kevin and Scott Bilker

Scott,

Thanks for your informative article on Biweekly mortgages. It really helped to open my eyes when I was considering one.

Isn't this practice illegal? Seems like the marketing materials that I received are misleading and deceptive. Do you have any recommendations on what I can do to help stop this practice?

Kevin

Finish Reading Article

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DISCLAIMER

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.

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