Here is a tip from General Mills marketing exec., Erin, whom I met while on travel a couple weeks ago. Be careful not to "pantry load." Pantry Loading is the consumer version of carrying costs--the costs related to holding too much inventory. Pantry Loading is when someone buys a ton of non-perishable, usually canned, foods because they're on sale. They go in a cabinet and are forgotten. Just because the sale is "Buy 5 for $5" may not necessarily mean you need to or should buy 5. You may be able to buy 1 for $1.

DebtSmart reader, Cindy Campbell, has her story featured again in Kiplinger's. It's on newsstands now in the Winter 2008 issue of "Success with Your Money." That means that two DebtSmart readers are predominately featured in both of Kiplinger's latest publications!

Your stories are helping people see the truth about the banks. That's why I  have another opportunity for you to share your experience with thousands of people...

While writing about nasty credit card practices for a recent SmartMoney column, Kelli Grant (Senior Consumer Reporter) started hearing a lot more about a particularly unusual tactic called behavior risk assessment. You’ve probably been hearing about this too. Essentially, behavioral risk assessment looks at what you buy and where, comparing it with the shopping patterns of cardholders who have defaulted or have a bad repayment history. That risk assessment can be used to cut your credit line or increase your rate. To better understand this and other criteria used by issuers to cut limits, SmartMoney is doing research with consumers who have experienced a limit cut. In the particular case of behavioral risk assessment, there’s little known about which purchases increase your risk. So SmartMoney is looking for people who have recently had their credit limits cut and are willing to talk about their spending habits. Please complete this form if you want to share your story.

Best,
Scott

Advertisements Loan Consolidation Direct Lending Solutions Guide to online lending choices. Loan Consolidation Bad Crөdit Loans Fast and easy personal loans for people with bad crөdit. Debt Settlement Eliminate Crөdit Card Debt Settle credit card debt- 50% or less. Rөduce payments. $10K minimum. Debt Settlement Too Much Credit Card Debt? Get a frөe quote to reduce debt up to 60% and be debt free fast! Personal Loans Personal Loans Offering personal loans for people with bad crөdit. Downloads 37 Days to Clean Credit How I Boosted My Credit Score 135 Points In Only 37 Days! Stop Debt Collectors Cold! Stop Debt Collectors Cold! Plus, for a limited time, 4 bonus reports. Credit Secrets Bible Step-by-step, easy-to-learn, easy-to-use insider consumer credit secrets. Get out of Debt E-Book Package Strategies for getting out of debt and true methods for frugal living. Credit Cards 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: 15 Months, APR: 7.99%. Citi® Platinum Select® MasterCard Intro Rate: 0.00%, Time Period: Up to 12 Months, APR: As low as 7.49%. Blue from American Express® Intro Rate: 0.00%, Time Period: Up to 12 Months on purchases, APR: 2.99% for 12 months on transfers. TrueEarnings® Card from Costco Intro Rate: 0.00%, Time Period: 3 months on purchases, APR: 1.99% for 6 months on transfers. Chase Platinum Visa® Intro Rate: 0.00%, Time Period: 12 Months, APR: 9.99%. Discover® More Card Intro Rate: 0.00%, Time Period: 12 Months, APR: 0% for 12 months on transfers.

In This Issue

	Cool Quote
	Rate jacked-up to 21.99 percent
	STATISTIC: Homes worth less than mortgage
	You may have an unknown savings bond
	You Cannot Afford To Say, "I Can't Afford It"
	"Outraged and discouraged, I came across your website..."
	Rise of the neo-hagglers
	Household Math™: How Much House
	Ending the Paperwork Nightmare
	Americans look forward to a happy, but less plentiful, holiday season

Cool Quote

"New Rules for the Game of Life: (1) If I give my best effort, then I am successful; (2) If I don't try, then I have failed; (3) If I learn something new, then I have succeeded; (4) If I am having fun, then I can access more of my abilities; (5) If I take action consistently, then I increase my chances of success."
--Kent Healy, CoolStuffMedia.com

More cool quotes from past issues

Rate jacked-up to 21.99 percent by Scott Bilker

Scott,

I carry multiple credit cards and have enjoyed very much having banks compete for my business. Thanks to your publications, I have several fixed-for-life, low interest accounts, some of which are only 1.99% APR.

Now, due to this financial economy mess banks are running scared. I have had unused credit cards closed by the issuer. Available credit reduced to just above my balance on a few accounts. Last week, my Bank of America American Express card took a major rate increase. I had a fixed 7.99% rate, which I enjoyed for two years. I carried a high balance on this card because I purchased a nice motorcycle with it two years ago. My rate went from 7.99% up to 21.99%. No late payments to them or anybody else.

I called them up on the phone and got a 15-minute interview with a supervisor. After reviewing my credit history (Yes, I have a secure job, and I own my house and land; No, I have never filed bankruptcy or had a repo etc.), they finally returned my APR to 7.99% but reduced my available credit to just above my balance. I guess, in the future, available credit will be hard to get. I did carry about $75,000 of available credit but that is dropping by the Credit card companies.

Gerald

Finish reading this article

STATISTIC: Homes worth less than mortgage

Almost 20 percent of U.S. mortgage borrowers owed more on their loans in the third quarter than their house was worth. More than 7.5 million properties already have negative equity and another 2.1 million will follow, should home prices decline another 5 percent. Six states account for almost 60 percent of homes with negative equity, led by Nevada and Michigan.

More credit card and debt statistics

You may have an unknown savings bond

Did you know...

Each year, over 15,000 savings bonds and 25,000 payments are returned to the Department of the Treasury as undeliverable.

In addition, billions of dollars in savings bonds have stopped earning interest but haven't been cashed.

Treasury Hunt tells you about savings bonds no longer earning interest. If you still have these savings bonds, cash or reinvest them so your money can start working for you again.

Note from Scott: Please let me know if you find any bonds you didn't know about.

See story here

You Cannot Afford To Say, "I Can't Afford It" by Michael Angier

Every week I get emails from people thanking me for all the great stuff we send their way. But many of them also apologize for not buying some of our other products or the products and services we very selectively recommend to them.

They say things like, "I have no money," "I'm broke," "I'm poor," or "I can't afford it." Every time these or similar words are uttered, we're telling ourselves that it's true. We are reinforcing this false belief.

I've been there myself. In fact, I've been a lot worse than broke. Fifteen years ago, being broke would have been a welcome step up. And when I was in that state I, too, said, "I can't afford it."

Finish reading the article

"Outraged and discouraged, I came across your website..."

Dear Scott,

I lost my promotional rate of 4.99% for the life of credit (American Express) over a month ago. (It changed to 18.99% in a split second). I was late with my payment, I admit. This happened for the first time in my credit history. I did mark the bill as "PAID," but I didn't post the actual payment online. Life is complex, and sometimes things just don't work our way.

Anyway, I called customer service and requested to have my promotional rate reinstated. My request had been denied within 48 hours (I learned this today from CSR!!!! 4 weeks later); however, nobody from AE took the time to inform me about it!!! It seems that American Express deliberately kept this for themselves in order to charge high finance charges. I was charged twice in a row some $120 (I owe them about $7,000) in finance charges.

Outraged and discouraged, I came across your website and decided to try your books. I got them in the mail yesterday and educated myself overnight. Empowered and knowledgeable about my actual customer rights, I called customer service today AGAIN. I did recite them a couple to-the-point sentences of yours and stated clearly--in plain English--what I wanted. And, guess what? They apologized for not informing me about the denial of my request in a timely manner and were very "happy" to help in any way. note: As an ESL (English-second-language student) I appreciate ready-to-use sentences/examples.

Results of a single call: (1) Late fees of $38 waived without any further questioning; (2) Promotional rate 4.99% reinstated within 10 minutes while I was on hold; (3) The difference in the two interest rates credited back to my account

Call time: about 15 minutes. Total credited to account: $206.15 (but with my rate reinstated, I'll be saving much more). I had no difficulty dealing with CSR and lady on the phone was actually very helpful and understanding. I also called my other credit cards regarding the lower interest rate, and I was 100% successful.

I just want to say thank you for writing this money- and life-saving book. Money is extremely emotional. I never knew that; I'm in credit card debt for the first time in my life. I hold two bachelors in Finance and Management but had no idea that I have so much bargaining power as a customer of theirs! I will recommend your powerful stuff to everyone I know. Please, Scott, continue the good work, and if you can, advertise more.

Lenka

Learn how to "Talk Your Way Out of Credit Card Debt"

Rise of the neo-hagglers

Nobody has to tell Eli Blair it's a buyer's market.

When she makes one of her regular visits to Guitar Center, she always negotiates on price.

"They're pretty willing to cut you a deal," said the 24-year-old Chicago musician who performs as Ellie May.

Call Blair a neo-haggler, an empowered consumer who feels fine about bargaining. Neo-hagglers don't feel like they're being cheap. They see themselves as smart shoppers who are getting what they want during one of the most unsettling economic periods in decades.

"All you have to do is ask," advises Blair, who recently snagged a $499 bass guitar for $410 and got a $100 to $150 hard-shell case tossed in.

See story here

Household Math (TM): How Much House by Scott Bilker

Sandy finds a bank willing to give her a 30-year, fixed-rate mortgage. They require her to give a 20% down payment on the purchase of her home. The interest rate (APR) is 8.4%, and she must pay 1.5 points, which will be rolled into the mortgage. After property taxes, PMI, etc., Sandy can afford $1,500 per month on the mortgage payment. What is the maximum price of the home that she can purchase?

Answer this math problem

Ending the Paperwork Nightmare by Maria Gracia

With all of the paperwork flowing into our lives day after day, it's easy for it to get out-of-control. Forms, memos, letters, catalogs, mail, flyers and advertising offers are stacked in our In Box. Leave that In Box untouched for a day, and you've got yourself a paperwork pile. Leave it untouched for a week or more, and you've got yourself a paperwork nightmare!

Here are a few simple ideas to help end the nightmare and get all of your paperwork under control...

Finish reading this article

Americans look forward to a happy, but less plentiful, holiday season

For the third year in a row, our friends at Consumer Reports National Research Center have polled Americans to find some revealing facts about their holiday spending plans. And -- as you might expect -- this year's picture isn't entirely pretty.

With the economy in shambles, 76 percent of those surveyed say they'll cut back this season. Specifically, they'll buy fewer gifts; travel, entertain, and tip less; send fewer greeting cards; and scale back on charitable donations.

But wait--there's also good news. Despite the penny-pinching, we remain a highly optimistic people. Eighty-eight percent of respondents say these holidays will be at least as happy as last year's; and 28 percent expect them to be even happier.

See story here

[Subscribe]  []  [Advertise]  [Free Content]  [DebtSmart Products]