COOL QUOTE " My very first credit card--today I’m a woman!"--Miley Stewart (Hannah Montana) Quotes from all previous newsletters IN THIS ISSUE #139 Letter from the publisher Cool Quote DebtSmart® Recommended Products and Services Beat the banks by threatening to call the Better Business Bureau DebtSmart® Amazon aStore More credit card and debt statistics "He dropped it down to 9.9% fixed..." Household Math™: Home Equity vs. Credit Card Stop Debt Collectors Cold! The Credit Repair Kit plus bonus CD! Christmas Can Still Be Merry Without All the Spending 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. Credit Cards in Circulation Credit cards usage is widespread, with some 1.5 billion in circulation in the U.S.--5 for every American, according to a recent report from the U.S. Government Accounting Office (GAO). Americans last year used nearly 700 million credit cards to purchase more than $1.8 trillion in goods and services. 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. Ebates Pays To Shop Online Up to 25% Cash Back every time you shop online at over 800 stores! Plus get a $5 bonus on your first purchase! 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,

Hello again! Here are a couple interesting items...

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Gift Card Thieves
Watch out for this one! Cons have found a way to rip off cash from gift cards. They go to the department stores where the gift cards are sold and write down the serial numbers. Then, they continuously call the 800 number that's on the back of the card to check the balance of the card. When the balance starts changing, they know it's been activated. At that point, the thieves make online purchases using the card number. The way to beat the crooks at this game is to make sure that the gift cards you get have scratch-off serial numbers.

Funny stuff
Last week, I was interviewed on Greg Allen's, The Right Balance. We talked about saving money during the holiday season and other ways to handle credit cards. Well, Greg sent me a link to some great music. It's hilarious! You have to listen, especially to the song, Xmas Time For Visa. It's from Austin Lounge Lizards. Enjoy!

Hannah Montana
If you have kids, then you know this Disney show. It's about a girl, Miley Stewart, who is secretly pop-star Hannah Montana. The last episode was entirely about credit cards! It's always a little surprising for me to see how much credit cards are embedded in our culture. Sure, it makes sense that they would be in a financial way, but in a kids' show? Anyway, in this episode, Miley and her brother received their first credit cards--to be used for emergencies only, of course. But then, an emergency happened. Miley needed new boots, a skirt, hand massager and more. Her brother had the idea of selling Hannah Montana stuff at eBay.com to cover the charges before their father found out. But Dad (Billy Ray Cyrus) was one step ahead and ended up teaching them both a lesson. It's actually a good show--check it out sometime.

That's all for now.

Best,
Scott

Heidi wrote to me about her problems with a bank that was charging her a ridiculous interest rate of 33%. She had called the bank and was not able to do anything. I suggested that she transfer her balance and she called back and threatened them with calling the Better Business Bureau.

It worked!

What follows are the details of my email correspondence with Heidi.

Enjoy!

EMAIL #1

Scott,

I was reading your article on how to call a credit card company and asking them to lower the APR. I did this on one of our credit cards, which we have been customers for 8 years, no late payments. (Though our overall credit rating is somewhat medium, not excellent--not bankrupt.)

When I called, they told me that the computer generates a letter offering me a lower apr and they cannot lower the rate. In the 8yrs that I was with this company, we have never received such a letter.

I also just realized that I have a variable rate, which now we have a 33% APR!!!!!!!!!!!!!!!!!!!!

Outrageous!!!

I was young when I opened this account, not realizing a variable rate was on this offer.

What can we do now?

Thanks in advance.

Heidi

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"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

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

Donna and Kyle need $10,000 to remodel their kitchen. They will be able to repay this in 12 months. Donna gets an offer on her credit card of 0% for 12 months with a $10,000 max and no fees. Kyle's college buddy, Vinnie, is a mortgage broker and tells Kyle that he can get him a home equity line of credit at the Prime rate, currently 4.25%, with no application charges or other fees. Kyle tells Vinnie that his wife has a 0% credit card offer and asks him which is better. Vinnie says that in their case the home equity line will have full tax benefits. However, they would remain in the same tax bracket. Which option is better? The 0% credit card deal or the home-equity line of credit?

Answer this problem

Read about stopping debt collectors

The other day I heard something that surprised me. A recent nationwide study showed that 70% of those polled planned to spend the same amount or even more this Christmas than they did last year. When I read this, I couldn't help but wonder who the pollsters talked to when they did their poll.

They must not have talked to my friends, Chuck and Melinda, who were both downsized from their jobs a few months ago. They couldn't have contacted Mike and Faye, a single-income family struggling since Mike lost his job. The survey surely didn't include input from my friends Sarah or Rachel, both of whom have been laid off for close to a year. Maybe someone, somewhere is planning to spend more at Christmas, but certainly not anyone I know.

The truth is that many Americans are facing the challenge of celebrating the holidays this year on limited budgets due to cutbacks and downsizing. This prospect can be both discouraging and unnerving for those who have always done Christmas in a big way. Even families who normally celebrate rather simply are looking to simplify even more during these tight economic times.

Finish Reading Article

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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