COOL QUOTE " Be sure you know a person well before you vouch for his credit. Better refuse than to suffer later." --Proverbs 11:15 (The Living Bible, Tyndale House Publishers, 1971) Quotes from all previous newsletters IN THIS ISSUE #158 Letter from the Publisher College Credit Video Cool Quote DebtSmart Reader Tips DebtSmart® Recommended Products and Services How are you buying a car with credit cards? Statistics: What we pay for in a gallon of regular gasoline "On the cutting edge" Household Math(tm): Car Insurance Payments vs. Credit Card Offer How do you get over $7,000 in one year NOT working? DebtSmart® Column for your use in-print, ezine, or website DebtSmart® books and software, and other products Update Your Email Address, Subscribe, Unsubscribe, and Disclaimer Information Publisher: Scott Bilker Editor: Larissa S. Bilker Assistant Editor: Denise Troy ISSN 1538-6740 Advertising Information 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. What we pay for in a gallon of regular gasoline The June 2007 average price for gas was at $3.06, but you will be surprised to know what's in that price: 22.7% for refining; 13.7% for distribution and direct marketing; 13.0% in taxes; and 50.5% for crude oil. 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%. Automatic Debt E-Racer® Let us pay off all your debts for you. Fast, Automatic, Costs you $0. 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). 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 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%. Credit Secrets Bible The 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.

Hi,

It's that time of the year--back to school! If you're heading for college or if your kids are, you are will appreciate this entertaining video I found on YouTube. This is great! Play the Video

Hey, do you have a Capital One credit card? Yeah, well, good news for you! Capital One reported earlier this month that they are going to start reporting credit limits to the credit bureaus. That's important because your credit score is based in part on credit usage. Credit usage is the ratio of your debt to your total available credit lines. By not reporting credit limits, Capital One users would have high credit usage ratios. That would reduce credit scores. The bottom line is that you should see your credit score go up once your credit limits are reported.

Automatic Debt E-Racer has a plan that may allow you to use the money you're already paying on your debts and the take-home income you already earn to pay your debts off automatically. To find out more about their service, you can fill out the free analysis form here.

Thanks again for reading DebtSmart!

Best,
Scott

Scott,

Great web site! I read your article on purchasing a car with credit cards. I couldn't agree with you more! Money is money. And I want to borrow at the lowest possible rate!

Mechanically, how are you completing the transaction? I've heard some dealerships don't take credit card purchases (because of the CC discount?).

Assuming you used a convenience check, how did you optimize that transaction? Did you quickly transfer the balance to a 0% card?

Thanks,
Jon

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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:

Budgeting: Track spending
For at least thirty days, write down every penny you spend and why it was spent. Be as specific as possible. This way, you can categorize what you spend money on on a daily basis and make constructive changes accordingly.
--Joe

Investment: Save 10 percent
If there is financial advice that I am glad I follow, it's: "Save 10% of whatever income you make." Ten percent, that is it! This simple advice has put me in route to become a millionaire within the next 4 years. I always hear the lame excuse that I cannot do that because I need that money. My reply has always been: "If you could not survive without 10 percent of your salary, you are doing something seriously wrong." I had my 10% taken out of my paycheck, and I do not even notice it. Funny thing is that if their employer tells them that their salary will have to be cut by 10 to 15 percent or else the plant will close, they will find a way to live on their new salary in a heartbeat.
--Jose

ID Theft: Bad smells protect you
A great way to avoid any possible type of identity theft is to mix your shred with anything stinky--such as used cat litter, diaper pail or compost. Any thief who has a sense of smell will not bother to sift through this stinky shred to get your information. It will be too much trouble for them and they'll look for a less "offensive" target.
--Jay

Read more DebtSmart Reader Tips

"Your articles are easy to read and follow, although they contain a lot of detail. You have a talent for being able to tell people complicated things without making them seem stupid, or the goal unattainable. I think most of us are financially lazy--we would rather keep on in our rut than change--but then along come articles like yours that shock us into motion. I love the links to other articles and sites. I also love the calculation tables.

I have subscribed to your newsletter and used your site for many months now. I find you to be "on the cutting edge" when it comes to financial matters--I always end up pushing myself to do something more when I have read your articles."

--Elaine Wente

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

Your auto insurance bill arrives; it's $600.00 for 6 months of coverage, ugh. Luckily, to make paying easier, they give you the option of spreading this out over 3 monthly payments. The catch is they charge you an additional "convenience" fee of $3 per payment. The same day you also receive a credit-line check offer from one of your credit cards, with no check fees, that is good for 3-months with a 5.99% APR. What's better (cheaper) to do: take the insurance company's payment plan offer or use the credit line (5.99% offer) check to pay the car insurance in full for $600.00? Technical Note: No matter which choice you make, you must pay off the $600.00 principal in exactly 3 monthly payments. What's better (cheaper) to do and why?

Answer this problem

Many of us feel overwhelmed by debt and don't know how to start climbing out of it. For others it's a misconception that the more money you earn, the easier it is to save. My husband and I paid off $20,000 of credit card debt and medical bills in 5 years on an average income of $22,000 a year.

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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.