COOL QUOTE " A day of worry is more exhausting than a week of work."--Fortune Cookie Quotes from all previous newsletters IN THIS ISSUE #155 Letter from the Publisher Cool Quote DebtSmart Reader Tips - Page 1 DebtSmart® Recommended Products and Services Pickup Payments DebtSmart® Amazon aStore Statistics: Consumer Credit in May 2007 "Now I know how to handle these kind of offers..." Household Math(tm): Job Offers Stop Debt Collectors Cold! Credit Secrets Bible Reverse Mortgage Basics 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. Consumer Credit in May 2007 Consumer credit rose at an annual rate of 6.4 percent in May 2007, far above the small 1.1 percent gain of April. The increase was propelled by a surge in the category that includes credit cards, which rose at a rate of 9.8 percent. The jump in credit card debt was the largest since a 14.5 percent rate of increase in November. The category of consumer credit that includes auto loans was also up in May, rising at a 4.4 percent rate after a 1.7 percent gain in April. The size of the increase was nearly double what economists had been forecasting. Read more credit card and debt statistics DebtSmart® Recommended Discover® Platinum Wildlife Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%. Advanta Platinum BusinessCard with Unlimited Rewards Intro Rate: 0.00%, Time Period: 15 Months, APR: 7.99%. Citi® Platinum Select® MasterCard Intro Rate: 0.00%, Time Period: Up to 12 Months, APR: As low as 8.49%. Blue from American Express® Intro Rate: 0.00%, Time Period: 15 Months, APR: 4.99% (for life on transferred balances). Advanta Life of Balance Platinum Card Intro Rate: 2.99%, Time Period: Until Paid Chase Platinum Visa® Intro Rate: 0.00%, Time Period: 12 Months, APR: 14.24%. Discover® Platinum Card Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%.

Hi,

Last issue, I asked for tips--and boy did they come in! Thank you! I'll be adding tips a few at a time in each newsletter. So if you don't see yours today, you can be sure it will be included in an upcoming issue.

Also, thank you for the wonderful comments about DebtSmart.com like this from Rose Heath: "You know, sometimes you just want meat and gravy type information and sometimes you want the full gourmet dinner. DebtSmart has the full menu for every kind of reader! Sensible tips that anyone can do, strategy, ethical investment tactics, and responsible planning all in one understandable place from normal people who live normal lives and cope with normal expenses of life. That's a 'meal' that will 'stick with you.'"

Best,
Scott
PS: Here are a few TV stories that I was involved with recently. These stories covered different aspects of credit card debt. Please check them out:

Thanks for submitting your tips! I'm going to be introducing a few new tips in each issue. So you can be sure that yours will be out soon. Here are this issue's tips:

Shopping: Save money at online auctions
Check ebay for items you need or want. You can often get them for a significantly lower cost than in a store. Some sellers have monthly payments for higher-end items. And it's not just used items--you can get brand new items! Some stores are also on eBay, as well, holding auctions for their items.
--Judith

Debt Management: Hang a sign
My husband hates his job, and we are working hard to be debt free so he can quit. We have a graph that we drew with how long it will take us to pay everything off (30 months) on our fridge. Each month that goes by brings us closer to our goal. The graph is also a great reminder of why we should continue to make wise choices and not splurge. We also try to never crank up our cars to go anywhere but work, unless we have THREE GOOD reasons to!
--Annie

Credit Cards: Pay bill when you get it
Pay your credit card payments the day after the statement prints. This lowers your average daily balance which saves you money in interest fees. Also, several of the credit card companies have changed to having the due date and statement dates several days apart. By paying right away, you won't be fooled into a late payment either.
--Beth

Household: Dollar stores and doggie bags
These are a couple of simple tips that save me money at the supermarket weekly. I reuse the plastic shopping bags as garbage bags. I also reuse the plastic long bags that my newspaper comes in daily, as doggie poop bags. This way I don't spend money on garbage bags or poop scoop bags--those dollars add up. I also buy many household products at the Dollar Store--I even find name brands such as Disney in there. The people who run the store tell me that they buy huge truckloads for a reasonable amount of money. This is how they can sell even name brand items for $1. I also get all my greeting cards there, which are 2 for $1. At Hallmark, you would pay $3 to $5 dollars for cards and also gift bags, which I also purchase at the dollar store.
--June

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Submit your advice to a DebtSmart community

Mr. Bilker,

I really enjoy reading your newsletter and have gotten several good tips from it. My problem is that I have a 2000 dodge pickup on which I owe about $13,000 on, and it is only worth around $9,000. I am about halfway through a five-year loan and am paying $524.00 a month.

I married recently and am having a baby soon, so I need to find a way to either get rid of this pickup or lower the payments. What would you recommend?

Any advice would be appreciated.

Thank you.

Tracy

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"I read the article 'How banks use low rate offers to lock in high rates' in the July 11 newsletter and it really hit home with me. I have taken advantage of these offers many times and still have a few with the split rates. I went back and looked at how the payment was applied and, to my surprise, found that it was exactly as you described. Now I know how to handle these kinds of offers in the future. I enjoy reading the newsletters and have learned more about handling our finances thanks to your articles. Thank you so much!"

Susan

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

This question is from my son's 3rd-grade, New Jersey Assessment of Skills and Knowledge (NJ ASK) sample test.

You have to choose between two different job offers for the same four-day period. The first job pays $5.00 each day for the four days. The second job pays $1.00 for the first day, and each day after the first, you will be paid twice the amount you received the previous day. Which job will pay you the greatest amount?

Answer this problem

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Read about stopping debt collectors

Reverse mortgages are becoming very popular. There are many questions and myths concerning this helpful financial tool. The purpose of this article is to provide a broad overview of reverse mortgages as well as examples of loans.

A reverse mortgage allows senior homeowners to turn some of their home ownership into tax-free income without selling their home. The borrowers maintain title and make no monthly mortgage payments as long as the borrower stays in the home. In fact, monthly payments often go to the borrower.

Reverse mortgages are not new. The Housing and Community Act of 1987 established a federal mortgage insurance program creating a market for these loans. The insurance program provides a safety valve that protects the public from financial loss. Reverse mortgages enable senior homeowners to convert the ownership value of their homes to monthly income or a line of credit. The insurance program ensures the borrower, or heirs, will never pay more than the ownership value of the home.

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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!

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If you don't already know, I'll be the first to tell you... banks, finance companies, bill collectors and credit card companies are some of the BIGGEST crooks in the world. If you don't know the secrets contained in the Credit Secrets Bible, you will pay tens of thousands of hard-earned dollars in extra bills, interest and fees, etc. Your money will be wasted (down the drain) for no reason other than you don't own the Credit Secrets Bible home study course.

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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 ©2007 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.