COOL QUOTE " I'll gladly pay you Tuesday for a hamburger today."--Wimpy in Popeye Quotes from all previous newsletters IN THIS ISSUE #140 Letter from the publisher Cool Quote DebtSmart® Recommended Products and Services Penalty Rates DebtSmart® Amazon aStore More credit card and debt statistics "He dropped it down to 9.9% fixed..." Household Math™: Semiannual Mortgage Payoff Stop Debt Collectors Cold! The Credit Repair Kit plus bonus CD! Car Salesmen: Here Come the Vultures! 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 Card Debt Rises In September, consumer credit rose a revised $4 billion, well above the previously reported drop of $1.2 billion. Consumer credit fell at a 0.6% annual rate in October, the biggest decline since October 1992, the Fed said. Non-revolving credit fell at a 3.3% annual pace in October, which was the largest decline since a 3.4% decrease in May of 1993, according to the Fed. Revolving credit gained at a 4.1% annual rate in October on top of a 4.9% increase the prior month. 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,

I hope you had a very Merry Christmas, Happy Chanukah, and are enjoying a Happy Kwanzaa. I wish you the best for whatever you do or celebrate! Time off, time with family, and time to reflect.

The year did fly by. Holy 2007! Don't you still remember that whole 1999-thing? You know, the end of the world because of Y2K. There are still many people with canned food and gas generators in their basement. At least they can eat the food and use the electricity when the power goes out.

So what's next for 2007?

Let's talk about the money.

There are many people who make New Year's Resolutions. I'm not one of them. If you want to make a change, then just do it now! There is no need to wait for a special occasion or date. If you want to start paying more toward your debt, then, as Nike says, "Just do it!" Yes, I know, easier said than done. That's what separates those who don't succeed from those who do. Which are you? (I'm betting you're the latter.)

So, what's in the future for credit cards?

Gee, that's a tough one--NOT! How about higher interest rates, increased late payment fees, increased cash advance fees. On the brighter side, my bet is for increased low-rate credit offers, lower introductory offers, and more credit options for all. That's because the banks have already saturated the credit card market, and the only way they can find profitable customers is to steal them from another bank. Of course, once they have you, they will try to gouge you unless you speak up.

If you have a nice low-rate mortgage, then it may be better to save your money in money market accounts than pay more toward the mortgage. My mortgage rate is 4.75%--boy that's nice. And, with my Schedule A mortgage deduction, it's even lower! (I'm not bragging--just happy.) Money market rates are at 5%, so why not save the cash? It's pretty much a wash right now. I mean, my credit card rates are at 0% so I'll hold on to the cash for a rainy 2007-day. But if I had any high-rate credit cards, I'd send that extra cash straight to those debts to save the maximum on interest charges.

It has been a pleasure and honor to provide the DebtSmart Email Newsletter to you in the year 2006. I wish you a wonderful, and prosperous, 2007!

Best,
Scott

Scott,

My interest was raised to 28% after "a few" (honestly) late payments. They told me they would review my info in 6 months. Do you think I have a chance of getting them to lower my rate?

Paula

Paula,

What's happened to you, and many, many others, falls under the "Penalty Rate" or "Default Rate" clause in your credit card agreement. In the mid- to late-90's, I started receiving Change of Terms Notices from many credit card banks informing me that if I missed a couple payments, they'd raise my rate to 29.99% or even higher!

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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

This question from a DebtSmart Reader, Margie: I purchased property for $27,515.00 at 7.5% for 8 years on a semiannual payment of $2318.00. The first year, three payments of $2,318.00 were made; we have paid three years so far. This year, on our due date, we would like to payoff the mortgage. What will be the amount due? (Note: Assume that the third payment in year one was made with the second payment.)

Answer this problem

Read about stopping debt collectors

Craig,

Whenever I go shopping for a car, the salesmen are always on top of me like vultures! How do I handle the first contact with these salesman so I don't look like an easy target?

Scott Bilker

This is an excellent question. The overwhelming practice in the car sales business is for dealers to use different "programs" or tactics meant to control and manipulate the consumer from start to finish. Most of these focus on controlling people by asking question after question until you are weary, or disarming the consumer by appearing overly friendly and interested, or the dreaded tactic of subtly directing the consumers actions. For example, a customer who is approached by a...

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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...

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.

Copyright ©2006 Press One Publishing. All rights reserved. Please do not reprint, or host on your web site, without explicit permission. However, if you found this newsletter helpful, we grant you permission, and strongly encourage you, to e-mail it to a business associate or a friend. Thank you.