Letter from the Publisher
by Scott Bilker

Hi,

I hope you had a wonderful holiday!

Keep your eye on CNN's, American Morning show tomorrow (6 AM to 10 AM Eastern). I was interviewed today by Miles O'Brien on the topic of increased minimum payments. It may run in the 9 AM hour but could be anytime during the show. There is a chance that it could run on Friday instead. (FYI, I'll be talking more about increasing minimum payments in the next email newsletter on 1/11/06).

Well, this is it--the last email newsletter of 2005! It's that time of the year where everyone is thinking about their New Year's Resolutions. What resolutions will you be making? I don't think I'll be making any this year. That's because I'm still working on last year's. Hey, I started jogging a few months ago. My endurance is definitely better, but I haven't lost any weight. Oh well, baby steps.

If you are making a New Year's Resolution, don't be locked into doing it just for the New Year. You can start today! You'll feel better. Don't wait--start now! If you're planning to spend less next year, then start spending less today. If you're planning to pay more toward your credit card debts, then start with today's bill stack.

I guess what I'm trying to say is that you can start taking action anytime. The best time is right now. Just do it now.

Maybe I should start eating less right about now. Hmmm, I don't think so. I'll start tomorrow--just kidding!

Corresponding with you through this email newsletter has been my pleasure. I'm looking forward to delivering to you even more content-rich information designed to help you save money in 2006!

Have a healthy and happy New Year!

Best,
Scott

Will a debt settlement adversely affect our credit rating?
by Scott Bilker

Scott,

We are drowning in debt--over $80,000 in credit card debt, some at over 30 percent! We are taking a second mortgage out on our house to pay it off. Should we ask the credit card companies to lower our payoff amount for paying off the balance in cash? Will this adversely affect our credit rating? Even a 10 percent reduction would pay for a car for my son. Your advice is appreciated!

Viola

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"We are very excited because your advice works!"

"Hi Scott - we are very excited because your advice works! My husband called Capital One to try to get them to combine two accounts into one and lower his rate. Both cards were paid off, and one we had shredded while we were on the phone with them when they would not raise the limit - they actually HEARD him shred the card! At first they said no, but then when my husband said he would shred the other card too and go with BOA instead, they changed their tune. The combined the limits of both cards onto one. Even though the limit is still less than $1000, it proves your point that it does PAY to make that call! Now I am going to try to get them to combine mine... Thanks!"

Sue and Ben Sheffler, Richmond Hill, GA

Read about special offer for all three of Scott Bilker's best-selling books

Household Math™: Biweekly Payments
by Scott Bilker

You borrow $25,000 at 8% for 5 years to remodel your kitchen and bathroom. Your loan requires 60 monthly payments to completely pay off the loan. After you get the loan, one of your friends tells you that you can save money by making payments more frequently. He tells you that this happens because you pay off some of the principal earlier and are not charged interest on that principal afterwards. Sounds good. Here's the question. If you convert that 5-year (60-month) loan into a loan that requires 130 biweekly payments (still 5 years), how much money will you save in overall bank payments?

Answer this problem

Sorting your money
by

For anyone that is familiar with The Complete Budget and Bill Organizer, you already know that I recommend that you use your checking account to pay bills and cash to cover your household expenses.

With all of the different items that the average individual or family spends money on, it can be difficult to keep it separated. You need to have money for groceries, car gas, school lunches, dining out and entertainment just to name a few.

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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 check out certain companies personally 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

Save money on clothing
by Gregory Thomas

The amount that you spend on clothing--do you know how much that is? One hundred, two hundred, maybe even three hundred a month?

Is it really necessary to spend that much money on clothes? Maybe not!

By simply adjusting your spending habits and learning to shop a bit more conservatively, you can save yourself hundreds, even thousands of dollars a year.

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Read more about using the Internet for your phone service

The rule of three
by Michael Angier

The United States Marine Corp believes strongly in what they call "The Rule of Three." They've found that implementing this rule saves lives, gets more done faster and more efficiently.

An article on The Corp in INC. magazine says, "The rule dictates that a person should limit his or her attention to three tasks or goals. When applied to strategizing, the rule prescribes boiling a world of infinite possibilities down to three alternative courses of action. Anything more and a marine can become overextended and confused. The marines experimented with a rule of four and found that effectiveness plummeted."

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