COOL QUOTE " The hardest thing in the world to understand is income tax."--Albert Einstein Quotes from all previous newsletters IN THIS ISSUE #137 Letter from the publisher Cool Quote DebtSmart® Recommended Products and Services DEBTSMART VIDEO LIBRARY: 5 Ways to Avoid Holiday Debt Scott Bilker's MySpace Page DebtSmart® MySpace Group DebtSmart® Amazon aStore More credit card and debt statistics "He dropped it down to 9.9% fixed..." Household Math™: How much spending Stop Debt Collectors Cold! The Credit Repair Kit plus bonus CD! Frightening Future More credit, more options! Free DebtSmart® Column for in-print publication, ezine, or web site Books, software, in-print and downloads Archive of Email Newsletters online Advertising Update-Subscribe-Unsubscribe-Disclaimer Information Publisher: Scott Bilker Editor: Larissa S. Bilker Assistant Editor: Denise Troy ISSN 1538-6740 You can add DebtSmart® News RSS feeds to your newsreader pages. Note: RSS feeds are not a replacement for the email newsletter but a fast method of finding out what's new here at DebtSmart.com. Military Clearances Lost from Debt Data supplied to the AP by the Navy, Marines and Air Force show that the number of clearances revoked for financial reasons rose every year between 2002 and 2005, climbing ninefold from 284 at the start of the period to 2,654 last year. Partial numbers from this year suggest the trend continues. Read more credit card and debt statistics DebtSmart® Recommended Today's rates won't last! Don't wait! Get a loan for: Bad Credit, Cash-out, Interest Only, or Jumbo Loan. Blue Cash® for Business Intro Rate: 0.00%, Time Period: 6 Months, APR: 7.99% (for life on transferred balances). Discover® Business Card Intro Rate: 0.00%, Time Period: 12 Months, APR: 5.99%. Blue from American Express® Intro Rate: 0.00%, Time Period: 15 Months, APR: 4.99% (for life on transferred balances). Discover® Platinum Wildlife Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%. Cheapest pre-paid phone rates 473 FREE minutes, 1.9 cents USA and Canada, 2.5 cents UK, no switching.

Hi,

This issue's debt statistic has to do with military debt. Specifically, how many of our troops are losing their clearance because of debt. (The link to the article is referenced in the stat at DebtSmart.)

I used to work for NAES Lakehurst in flight deck marking and lighting.  We had periodic training on the topic of finances and your clearance.

There are three levels of clearance--confidential, secret and top secret. At one time, I had confidential and secret. In my field, it was essential to have clearance. If you lost your clearance, you lost your job! Too much debt can be the cause for losing your clearance.

The US Government wants to be sure that its employees, and military, are not continually focused on personal finances. Throughout history, money problems have led people to sell secret information or commit other crimes. Let's face it--would you want to put someone behind YOUR cash register if they have $80,000 in credit card debt and defaulted on numerous loans?

The lesson here is that if you're going to work in any capacity for the Government, you MUST pay close attention to your money. Don't use payday loans. Stay away from overspending. Budget wisely. Be EXTRA careful!

And, if you do run into trouble, there are places you can turn. Marine Major Stewart Upton, Pentagon spokesman for personnel and readiness issues, points out that, "There are several agencies that can help with credit counseling and then, if necessary, help the individual obtain a debt management plan, which can help the borrower work with creditors to find solutions to pay the debts. Family Centers have credit counselors, and Military OneSource is available 24-7 to provide credit counseling and referral to reputable debt management agencies. Additionally, the Military Aid Societies, the military banks and defense credit unions on military installations are geared to assist Service members find sources of cash to overcome immediate financial problems, rather than depending on high interest, short term debt. The bottom line is to not continue to add to the debt load to cover bills. Get help and get out of debt."

Best,
Scott

This is a DebtSmart® Video Library Presentation. The text from this presentation is included with the video. There are two streaming versions available to view online--one in the Windows Media Player format and the other in RealPlayer format. Additionally, there are two download speeds available for both versions in dial-up and high-speed Internet connections. Links to RealPlayer format streaming versions are available on the main video presentation page.

Between Thanksgiving and Christmas, people are going to spend $121.4 billion using their credit cards!

The key is not to let this debt stick. Don't allow yourself to get buried by that debt or spend the next year paying off the purchases from this holiday season.

How are you going to pay for the gifts?

Credit cards of course! I'm sure many people are going to criticize me for even suggesting such an idea.

I can hear it now, "Scott, are you crazy? Don't use your credit cards, USE CASH! I thought you were the anti-credit-card guy?"

Watch the video with: High-Speed or Dial-Up

"I just got your three books and was reading through Talk Your Way Out Of Credit Card Debt, when it dawned on me that I hadn't seen a statement from one of my banks for a while. I remember making a $5 charge at Baskin Robbins because I had ordered ice cream for the kids before I realized I didn't have my wallet. The account had a 0 balance at that point, and I knew I would pay it in full when the statement arrived.

I checked the account online and was floored to see the new balance at $102.38, because they charged me two months of late fees at $29 each plus a membership fee of $39. I just called to let them know that I had not received a statement from them, and asked if they would please waive the late fees and membership fee.

I got the standard 'we can't do that' but was told that they would make a $10 adjustment to one of the late fees. I then asked what the APR was at, and the rep told me to sit down before he gave me the figure. Because of the missed payments (because I got no statement), it had jumped from 14% to 27.74%.

He dropped it down to 9.9% fixed for two months then 9.9% variable after that. When I asked again about the membership fee being waived, he said he could waive it, but then would not be able to reduce the interest rate.

I went for the reduced interest rate and the $10 adjustment to one of the late fees. I will pay the balance in full on the 15th and not use the card for a while. The call took me 12 minutes and I was transferred once.

Thank you for all your information."

--Tracy Mundy

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Jackie wanted to figure out how much money she actually spent in this current month. She looked at all the checks she wrote and her credit card spending. Jackie noted that she hadn't used her credit card for purchases. However, she did write checks for: (1) $50 for cable TV; (2) $125 for groceries; (3) electric bill for $200; and (4) a minimum payment on her credit card of $80. How much did Jackie spend this month?

Answer this problem

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Dear Gary,

War is on the horizon. What should we do to prepare ourselves? I was a young teenager during most of Vietnam and I didn't have to make the financial decisions for my family. What do I need to know in order to plan for this frightening future?

Wendy W

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More credit, more options!

Credit options are your weapon against the banks! The key to success is using your credit lines to save money--not to go crazy spending!

What do you think of when you hear the words "credit repair"? I think of scam! That's because many companies have made promises to "fix" people's credit but then simply stole their money. However, there are still reputable sources for people to learn how to straighten out their credit reports.

Your credit report is your financial résumé and everyone from lenders to insurance agents reviews it. It's vital that there are no mistakes shown, and if there are, that they're removed!

There are many books on the subject, but my personal favorite is The Credit Repair Kit. That's because Joe Sainz offers great practical advise for correcting errors. Plus, he includes a Credit Booster CD-ROM with the book!

If you're having trouble getting the rates you deserve because of your credit report, then you must read this book!

Read more about The Credit Repair Kit plus bonus CD...

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