Thanks for the feedback from the last issue's video from the publisher! My
goal is to provide for you the most effective strategies of successful debt
management in all media formats, and I think video is the most powerful. Again, I
will never replace print, and I cannot always create a video, it's just going
to be additional content.
For the past several weeks I've been upgrading all my computer systems. I'm
finally going to Windows XP from 98SE. I wanted to hold out for as long as
possible because I didn't want to be a beta tester for Microsoft, but I think XP
is going to be around for a while and 98 is going to be phased out, as far as
support goes, by June 2006.
By now all those credit card charges from the holidays should be hitting your
mailbox. This is a great time to call a credit card that you have with a $0
balance and say, "Listen, I'll transfer my balance from my holiday
spending to you if you give me a 0% rate for at least six months." That
strategy will help keep your rates low and help manage all your bills in the
short term.
Talk to you soon.
Cheers,
Scott
Which Credit Cards Look Better on Your Credit Report
by Scott Bilker
Scott,
Let me start off by saying I love this website! I have a couple of questions.
I have been told that certain credit cards (e.g. Capital One, Cross Country, and
others like those) do not carry a lot of weight on your credit report. I was
always under the impression that all credit cards carried the same weight. What
is the truth? My next question concerns paying them off. I would like to pay off
my credit cards. Should I just pay them off and try not to use them? (I have
tried this before and failed). Or should I just go ahead and cancel them. I am
really getting sick and tired of credit cards and I want to stop using them
because they put too much pressure on me. Please advise.
Just wanted to let you know that the new video newsletter feature is a WOW!,
two thumbs up addition to your excellent web site and update column--good work,
fella!
Also wanted to send you a heartfelt Thank You for the site, and indeed having
the guts and resilience to put it all together in the first place. You've really
done a very good job in making help available to thousands of needy people; no
matter how educated you are, what your job is, and where you come from, if you
have no money you feel like a loser. And when you're in debt, you feel worse
than a loser--you feel a failure, naked, guilty, worse off that the poor old
tramp in the street, vulnerable, and that a speeding steamroller is about to
whack you off (sorry, I'm English--is that the right expression?!!) and squash
you into nothingness. But your site--and indeed, you yourself--have taken that
fear away from myself and countless others--and for that I thank you.
I'm English, living and working in a well paid job in the UK, and although
I'm still in debt, your website/newsletter/books have made me realize that I'm
not alone, still have a future, and have given me the confidence to do something
about it. I'm still in debt, and will be for the next five years, but each and
every month improves and that overall big red number is decreasing.
Most important of all, Scott, is that I now am in control--thanks to you.
You're very popular over here in the UK, by the way--I've read about you on
various newsgroups and sites.
Sorry to have bothered you with this, and apologies for being
long-winded--just wanted to pass on some positive feedback in these gloomy
times.
Take care, and with the very best of wishes,
Nick Smith
Household Math™: Average Daily Balance
by Scott Bilker
Most banks calculate the amount of interest you owe using the average daily
balance method. That method means adding up the outstanding balance each day in
the month and taking an average.
On day 1 in the month your balance is $5,000. On day 15 your payment of
$2,000 is credited to your balance. The number of days in the month is 31. What
is your average daily balance?
Each week I receive dozens of emails from people being hounded by debt
collectors. These collectors are horrible! They can harass, threaten, and embarrass
their victims without regard for the law. There have been many articles posted at
DebtSmart by those attacked by these evil hounds.
Yes, that's strong language and I am sure that the "good" debt
collectors (if there is such a thing) are going to send me hate mail in about 10
minutes, but the truth is that the majority of these "folks" don't
care at all about your situation. They're out to suck as much cash from you as
possible.
In the past I've advised people of the techniques needed to deal with debt
collectors however, a comprehensive information package has been created that I
can recommend that will help--for sure!
It's been written by best-selling author, Gerri
Detweiler, attorney John
Ventura, and Mary Reed, personal finance author. Not only is this aimed at Stopping
Debt Collectors Cold but they also include four other great reports: How
to Get Collection Accounts Off Your Credit Report, How to Avoid Losing Your Home
In A Foreclosure, What to Do if You Are Behind on Your Car Payments, and
Confidential Interview With A Former Debt Collector.
I highly recommend that you take a look at this information so you're
prepared to effectively deal with debt collectors!
"CardRatings.com has been offering ratings of credit cards since 1998
and has been featured by Good Morning America, The Wall Street Journal, Consumer
Reports®, NPR, PBS, etc. Thanks to consumers like you, CardRatings.com has
become the most comprehensive free source for comparing credit card
offers."
Most people understand what creativity is, and have a good idea what it means
to be frugal. But the idea of putting the two together is a little hard to
grasp. Because creative frugality is one of those things that is easier to show
than to tell, here is a quick list of dead giveaways for identifying creative
frugality in action.
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...
Retail Credit Cards and Department Store Credit Cards
by Rebecca Lindsey
Many retail stores want to offer you a line of credit. But before you sign up
to get 10% off your purchase and a free umbrella, you need to understand the
effect that such cards can have on your credit—both good and bad.
"If you apply for a {fill in name of store here} credit card today, you
will receive a 15% discount on your purchase."Oooh. What diehard shopper
wouldn't be tempted?
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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"The DebtSmart Email
Newsletter is packed with
cutting-edge strategies for
solving credit problems. I
highly recommend it."--Gerri
Detweiler, radio host and
author of The
Ultimate Credit Handbook
