COOL QUOTE " There is no class of people in the world, who have such good memories as creditors."--P.T. Barnum Quotes from all previous newsletters IN THIS ISSUE #171 Letter from the Publisher Cool Quote Debt Daredevil DebtSmart® Recommended Products and Services Book Review: "The Complete Guide to Prosper.com," by Sean Bauer STATISTICS: Record High Debt "3.9% sure is a whole lot better than 10.25%" Household Math(tm): True Rate of Transfer Offer 5 Ways to Stop Living Paycheck to Paycheck 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. High Record Debt In December 2007, revolving debt--an estimated 95 percent from credit cards--reached a record high of $943.5 billion, according to the Federal Reserve. The annual growth rate of this debt increased steadily in 2007, reaching 9.3 percent in the last quarter, up from 5.4 percent in the first quarter. Read more credit card and debt statistics DebtSmart® Recommended Discover® More Wildlife Intro Rate: 0.00%, Time Period: 12 Months, APR: 10.99%. Advanta Platinum BusinessCard with Unlimited Rewards Intro Rate: 0.00%, Time Period: 16 Months, APR: 7.99%. 37 Days to Clean Credit How I Deleted 9 Inquiries, 5 Negative Accounts, 4 Major Default Accounts, 1 Judgment, and Boosted My Credit Score 135 Points In Only 37 Days! 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® More 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,

There are new million-dollar ideas all the time. Here's a great one. Teenager, Ashley Qualls,  borrowed $8 from her mother to start WhateverLife (an online website that creates backgrounds for MySpace) and turned it into a million-dollar business! My point is that there are an infinite amount of million-dollar ideas. I know there's one in your head right now. Act on it! I want to see your story online. Watch this video, read Ashley's story, and get inspired--I know I am!

FYI, I thought you might like to read this note from my friend Dave:
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Scott, Even a 'pro'--thanks to helpful advice from you--at transferring balances between cards like me can screw up. I got the WaMu pre-approved card application in the mail and fell for the '0% until Aug09 when you transfer a balance--no BT fees'. I know you've seen this, but the catch is the 0%, of course, only applies to the purchases, not the BT which is 13.99%. It didn't occur to me until after I had transferred $2300 on 14 Feb and was ready to move more to the card. I double-checked the rate and the guy says the rate is 13.99%. I started reading back the application, and then I saw it. I complimented him on his company's ability to conceal the actual rate, and also told him I was closing the acct immediately. How could I be so dumb?????? Dave

Dave, Yeah, I've been tricked too, so don't feel bad. They have a staff of people working on conning us, so it's going to happen once in a while. Scott

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Best,
Scott
PS: NEW READER COMMENTS--THANKS!!
"Thank you for the excellent advice and common sense tips to help us get out of debt and stay out of debt! Much appreciated!"--Leslie

"Fortunately, I am debt free and likely one of the reasons I read your newsletter to begin with. I especially like the articles on actual experiences from people in debt."--Gerardo Avalos

Scott,

I am new to your web site and find your tips informative. I am however, interested in your opinion of other financial wizards and their money management tactics, such as Suze Orman. She seems to be very conservative in her methods, and you seem to be more on the risky side. There are also the Consumer Credit Counseling Services across the states that also lean on conservatism. How would you rate your methods in comparison to theirs?

Sherry

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Here is a book that's a long time coming. "Prosper" is a website that facilitates connecting people who want to lend money with people who want to borrow money. It can be great for those who want to get better returns than their money markets are paying as well as borrowers who cannot get a good interest rate from their credit cards or their bank.

Prosper is changing the face of lending every day and will be a financial force as people discover they can cut out the middleman and make more money on their savings or pay less in interest. But here's the problem: just because you want to borrow money doesn't mean there are people out there who want to lend it.

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Hi Scott,

I received your book Talk Your Way Out of Credit Card Debt,--it's a winner!

I have 6 credit cards. Today I decided was the day to TALK my way to lower APR's. Hey, the prime rate is dropping.

Simmons First National Bank, Pine Bluff, Arkansas--been a credit card holder with them since 1973. The rate was 12,25 variable. Called and got it down to 7.25% FIXED for Purchases and Balance Transfers. Now listen to this: Finance charge is calculated on Average Daily Balance. No Annual Fee. NO transaction fee for Balance Transfers.

Chase--got them to reduce from 12.47% to 9.49% Variable. Will transfer this one to Simmons.

Called American Express--they will not reduce from 10.25%--so will transfer all but $200 of this one to Simmons as well since I have a credit limit of $30,000 with Amex.

I found a DISCOVER CARD--called OPEN ROAD--in last Sunday's Austin, Texas newspaper--3.9% APR on balance transfers until January 2010. No Annual fee, 5% cash back on gasoline and auto related expenses PAID Monthly. They just called me to say I have been approved. WOW!

3.9% sure is a whole lot better than 10.25%

Thanks for all the good stuff in your book.

Cheers,
Noel G.

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

You're offered a balance transfer from one of your current credit lines. The offer is for 4.99% fixed with a one-time 4% transfer fee. You transfer $5,000 and pay $100 per month until the loan is repaid. What is the true APR for this loan when you include all interest rate charges and fees?

Answer this problem

Over one million Americans file for personal bankruptcy every year. The average American household has 10 credit cards. People are living above their means. Americans are drowning in debt and the problem is getting worse. Many people are foreclosing on their homes and will be forced to live on the street because they are in so much debt.

Many Americans spend their entire paycheck the same day or within a week of being paid. Americans want to live the dream of having a nice house, nice yard,  and a nice car. But, the reality is that most Americans can't afford that dream, yet they are still trying to live it.

If you are living paycheck-to-paycheck, here are 5 ways to improve your financial situation.

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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 website. 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 website 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.

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