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IN THIS ISSUE #156 |
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Publisher:
Scott Bilker |
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Editor:
Larissa S. Bilker |
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Assistant
Editor: Denise Troy |
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ISSN
1538-6740 |
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A new study of credit cards from 25 of the largest
issuers found that many still fall short of protecting users from fraud. 56
percent of the 25 card issuers surveyed continue to require full Social Security
numbers to help identify their customers, whether by phone, online, or by mail.
This is a risky practice that unnecessarily increases the customer's exposure to
identity fraud. While more card issuers now offer consumers e-mail or telephone
transaction-alerts to advise them of account activity, the number of
participating card companies is still small--about 8 percent. |
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Letter from the Publisher
by Scott Bilker
Hi,
GET YOUR STORY IN
KIPLINGER'S PERSONAL FINANCE MAGAZINE
Have you made huge strides in solving your debt problems? Have you repaid large
credit-card balances or student loan debt, saved for retirement, or dealt with rising mortgage rates you
could no longer afford?
Kim Lankford, contributing editor for Kiplinger's, is working on a
story about beating debt and wants to hear your DebtSmart Success Story.
Complete this form to submit your story to
Kiplinger's!
NEWS
Check this out. Capital One said that it's going to start reporting credit
limits. This is BIG news because it will improve the credit scores of
Capital One credit card customers. That's because your credit score includes
credit usage when calculating the score. Credit usage is the ratio of
debt-to-available-credit. The lower the ratio, the better. So if you have
$5,000 of debt and your total credit lines reported are $10,000, your credit
usage is 50%. If your credit line's maximum increases to $20,000, then the
credit usage ratio will drop to 25%.
COMMENTS ABOUT DEBTSMART
"I love all the information that is provided and explanations are simple
enough for me to comprehend. I've shared information with family and friends
on items that apply to them. Keep up the good work."--RG
Best,
Scott
DebtSmart Reader Tips - Page 1
by DebtSmart ReadersThanks 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:
Savings: Pay Yourself Instead
Instead of paying someone to do a job or task that I can do, I do it myself. Then, I pay myself the amount I would have paid them,
and I transfer the money to
my savings account.
--Carol
Bills: Financial Mentor
Just want to say that I am in debt over my ears and got in this mess by bad
choices and lack of knowledge. My advice would be that before making any
major purchases, e.g., car and home; get yourself a financial mentor. I
believe I would have not been dealing with these messes if I had known this.
--Diane
Groceries: Tea at Work
Tea at work costs 80 cents or 5 cents for a cup of hot water. If I bring my
own tea bag, and use my own cup, I'll save about $220.00 per year.
--RG
Savings: Bank the Difference
When you use coupons or buy something on sale, we say, "We're saving money."
We never really save that money unless we put the savings into a savings
account. This is what my wife and I do: We put the total amount she saves on
groceries indicated at the bottom of her register tape into our Vacation
Savings Account. Likewise, if I find a deal on something I wanted for the
shop, or house, we subtract the difference between the price the item was
most frequently advertised at, and what we paid for it, and put it in the
Vacation Savings Account. We may not use it to take a vacation, but we have
saved enough each year to make an extra car payment or buy things we wanted
for the house. We really do save when we shop.
--Dan
Read more DebtSmart Reader Tips
Submit your advice to a DebtSmart community
Negotiation persistence saves $21,000
by Scott BilkerThe best part about
DebtSmart.com, for me, is when I get email from readers about their success.
Amy and I have been corresponding about her situation regarding settling a
debt. When you settle a debt, your goal is to negotiate with the creditor
for a deal that benefits everyone. For the debtor, this means reducing the
balance and making the payment terms reasonable. For the creditor, it means
larger payments and a guarantee of payment in a specific amount of time.
The trick is knowing how low the bank will go
when dealing with them, or their third party representatives (debt
collectors). Typically, I've found that you can, on your own, get the amount
down to about 50% of the original balance. However, the bank will usually
want that settlement amount in one payment.
Finish Reading Article
"Now I know how to handle these kind of offers..."
"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
Household Math(tm): Punch me for gas
by Scott
BilkerHello! I enjoy the debt smart
newsletter very much. I particularly like the trivia and have often thought
about sending you the following, but just never get around to it. The best
part is it is real! Here goes...
Out of the three gas stations in as many
blocks, the middle price ranged gas station offers a punch card. For every
two gallons of gas purchased, you earn one punch on the card. When you reach
100 punches, you are entitled to your choice from a variety of free goods
from their store including a free large one topping pizza, taco meal deal,
or $5 worth of gas. The pizza is regularly $10; the taco meal is $7, but you
like the pizza because you read the DebtSmart® Newsletter.
At this particular station, the gas averages
$.05 more/ gallon than the business across the street.
Also, as a Thursday only special this
business offers *two* card punches for *each* gallon of gas.
Finally, this chain offers a rebate gas card
that earns you 3% cash back when using your card for purchases at this
particular chain. You, of course, pay off the balance in full each month so
it is interest free.
QUESTION "At what point does it pay to buy
gas here as opposed to the cheaper competitor, or is the lure of free pizza
just that?"
I realize there are many variables to this
puzzle, but that is what makes it interesting. Hope you can tailor it to fit
your puzzles online as needed.
Thanks again for the newsletter!
--Submitted by DebtSmart® reader Tammi
Chaney, who always buys gas on Thursday...with the gas card. ;)
Answer this problem
Stop Debt Collectors Cold!
Stop Debt Collectors Cold! Plus, for a limited time,
4 bonus reports:(1) How to Get Collection Accounts Off Your Credit Report; (2)
How to Avoid Losing Your Home In A Foreclosure; (3) What to Do if You Are Behind
on Your Car Payments; and (4) Confidential Interview With A Former Debt
Collector
Read about stopping debt collectors
New FICO Score is bad news for millions of Americans
by Mark EnderleI saw lead in the DebtSmart
Email Newsletter regarding FICO 8.0 and how it will impact people that are
either already authorized users or planning on becoming an authorized user.
I thought you might like some additional information on this topic.
After the news broke that authorized user
accounts with be removed from consideration in the new FICO 8 score, I have
spoken with Fair Isaac, Experian, Evan Hendricks, Gerri Detweiler, and Julie
Fergerson of Debix about this development. If this were adopted by the CRAs,
this could negatively affect hundreds of thousands if not millions of
innocent and unsuspecting Americans, and that is something to be alarmed
about.
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!
See
the ALL recommended cards
Credit Secrets Bible
by The
Consumer Publishing GroupThe Credit Secrets Bible contains
more step-by-step, easy-to-learn, easy-to-use insider consumer credit
secrets than any other home study course on the market. In fact, the
information in the Credit Secrets Bible is so powerful, we have to
disclose to you upfront that it is sold for informational purposes only.
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.
Banks and other institutions who take
your money, ruin your credit or deny you the money you need are very
powerful. They make a business out of hurting people like you to make
more money for themselves. And, the more they hurt you financially, the
more powerful they become. But they won't be able to hurt you anymore!
With the Credit Secrets Bible, I'll show you how to stop them dead
in their tracks!
Read more
about The Credit Secrets Bible
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DISCLAIMER
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
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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
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