I am so proud of you and all my readers, our
"DebtSmart Family,"
for the advice you shared with Nancy! You have such great wisdom, and I’m
honored to be able to correspond with you through this email newsletter!
You can read all responses in this issue’s Survey Results. I’ll be sure
that Nancy sees them.
Other items...
1)
The Federal Reserve Board is doing a study
about credit reporting. You can get involved! Read Gerri Detweiler’s
article in this issue to find out how.
2)
Do you ever wonder if you’re getting paid
enough? Find out by checking Salary.com.
3)
The Federal Reserve Board has raised interest
rates by 0.25%. You can be sure that this will affect your credit card
rates.
4)
CBS’s KWWL reported that teenage credit card
debt is on the rise with 20% of undergraduate students running up a debt
of at least $10,000 and that’s not all. Some estimate that more young people
are filing for bankruptcy than graduating from college.
Let’s end on a good note...ask yourself this question right now, "How
can I make an extra $100 this week?" Think about that, get an answer, and
get that $100.
Best Always,
Scott
PS: If you haven't done so already, please update your subscription
information--thanks!
Car Dealers by Scott Bilker
Scott,
I know that you have used these examples to help people learn and to be
aware but you have also just made every car dealer in the country a crook.
I grew up in a family that owns car dealerships and have been working
here for a number of years. I have been in the finance and insurance
office for 3 1/2 years and have never quoted insurance or extended service
plans in a final payment without first explaining what it is and letting a
customer decide the type of plan they want.
Secondly, because of disclosure laws, your father and friends would
have had to sign separate forms for credit life, disability, and extended
service plans giving them yet another opportunity to change their minds,
and yet a third opportunity exists. You can cancel any one of those plans
within a time period without any financial obligation.
Now, I'm not saying there aren't dealers out there doing exactly what
you experienced and I'd never tell a car buyer to not be aware, but I
think people should go looking for an honest dealership that exists on its
integrity rather than to force a bad dealership to comply.
By giving the corrupt dealership your business, even if you get them to
comply, still allows them to make money and stay in business.
SURVEY RESULTS: Your Advice for Nancy
by DebtSmart Readers
Nancy’s email ran in the last issue. Her feeling of helplessness
with debt sparked a landslide of responses from DebtSmart readers. I do hope
these comments help Nancy and others who feel despair over their financial
situation. Following the below samples is a link to all comments.
"Nancy, Please look at your children and think about what would
happen to them without Mommy. I grew up without my biological father and I
never knew him. I missed that part of life. I wish I could have had that.
Your debt should not consume you."
--Anonymous
"Don't give up! They are just bills... what more can they do to
you if your credit is already ruined? I've been there so I know how you
feel. I've felt suicidal over bills, too, but you know what?"
--Sue
"I can identify with you somewhat. I am a married mother of two
children-one in college. My husband has a good job and makes pretty well.
I tried a second job and the younger child began to have symptoms of an
ulcer. With all this background it brings us to this-my money situations
have gotten so bad that I presently have 10 payday loans(with each one
having 15%interest). It has become a vicious cycle-it takes my paycheck
and then some just to do the loans-what do I have left to pay the other
expenses?"
--Linda
"Nancy, Please, you don't want to do this. Think of your family
and the guilt they would experience if you did something drastic. I can
relate to many of the things you say. I too live life on the edge,
paycheck to paycheck, but the struggle is worth it when I am with my
family."
--Patty
Household Math™: Car Insurance Payments vs. Credit Card Offer
by Scott Bilker
Your auto insurance bill arrives; it's $600.00 for 6 months of coverage, ugh.
Luckily, to make paying easier, they give you the option of spreading this out
over 3 monthly payments. The catch is they charge you an additional
"convenience" fee of $3 per payment.
The same day you also receive a credit-line check offer from one of your
credit cards, with no check fees, that is good for 3- months with a 5.99% APR.
What's better (cheaper) to do and why? Take the insurance company's payment plan
offer or use the credit line (5.99% offer) check to pay the car insurance in
full for $600.00. Technical Note: No matter which choice you make, you must pay
off the $600.00 principal in exactly 3 monthly payments.
"I was shopping for a book that would help me with the credit card debt
I have accumulated. I chose this book. It has proven to be very beneficial to
me. It contains a large amount of information your banks don't want you to know.
My first night of reading the book, I got up to about page 70 and made my first
phone call, with the intent of gaining information about the account and
possibly getting a fee reversed. I ended up getting a $50 credit to the account,
relatively easily. I cannot praise this book enough! If you need to reduce your
credit card debt, this book may very well be your solution."
--Monica Rice, PA
ALERT: Credit Reporting Agency Study Underway (Let Yourself Be Heard!)
by Gerri Detweiler
Have you disputed an item on your credit report with a lender or credit
bureau? If you’ve found the process frustrating or difficult, now is your
chance to speak up!
The Federal Reserve Board is collecting public comments on the accuracy of
credit reports, as well as about the effectiveness of the dispute process.
Comments will be compiled in a report to Congress. It is very important that
consumers be heard in this process.
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...
It seems as though whenever we go out for the night, it costs much more than
we originally intended to spend. Having a 'night on the town' shouldn't cost you
a whole week's salary.
Keep in mind that the amount you spend is directly related to the place you
go and what you purchase. If you are attending an opera with private balcony
seats, followed by an elegant candle-lit dinner...plan on spending more than
forty dollars.
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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Detweiler, radio host and
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Ultimate Credit Handbook
