Tuesday, October 18, 2005

Buy used or New Cars?

Author: damnage
Posted: Wed Jul 27, 2005 5:15 pm
Post subject: Buy used or New Cars?

Hmm...cars. Such a necessary evil. I sold cars for over five years and worked in the F&I (Finance and Insurance, yes, I've seen thousands of people's CRs) department for two dealerships over two years. I swore I would never buy a new car.

However, with the low finance rates offered by manufacturers today it has me thinking. It really has me thinking because I drive a mere 8K-10K per year. So when I look at a two year old car with 25K miles on it I'm seeing three years of use already on the car.

In crunching the numbers on some vehicles I've been considering new versus used and it comes out to mere $25-$30 per month difference per month on similar terms. It's that close due to about a 3-4 percentage point difference in new versus used loan rates.

So...a two year old car with one year of warranty and three years worth of mileage (for my average driving habits) or a brand new car with three years of warranty and under 100 miles. It gets interesting.

I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.
Just my .02

Author: PFFrank
Posted: Thu Jul 28, 2005 1:29 pm
Post subject: Suze Orman's on Used Cars

damnage wrote:

I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.

"Car" and "Investment" should never be used in the same sentence (unless of course you're a collector of classic cars )

I always like to call them "depreciating liabilities" to really hammer home their proper place in my personal net worth statement.

Author: maddybeagle
Posted: Fri Jul 29, 2005 6:34 pm
Post subject: Suze Orman's on Used Cars

yeah, suze said that and got me thinking and I think she actually has something going there and capital gains and dividend taxes are currently LOWER than ordinary income taxes. If that continues (as I think it will), 401ks will still have their place, but maxing them out may not be the smart more for everyone.

Pay Down Credit Debt with HELOC

Author: Polonius
Posted: Sat Jul 23, 2005 6:20 pm
Post subject: Pay Down Credit Debt with HELOC

She's written a number of books. I think she means well and she's certainly knowledgeable, but some ofher suggestions make very little sense to me.

For example, she's adamantly against using a home equity line of credit to reduce credit card debt. Her notion is that you're risking losing your home by converting an unsecured debt to a secured debt. My notion is that it will reduce the interest you pay on your debt substantially and has tax advantages as well, so the advantages far outweigh the disadvantages providing, of course, you don't use the HELOC as an excuse to get even deeper into debt.

That said, I think her books are worth reading. Just don't follow what she says blindly.

Author: PFfrank
Posted: Mon Jul 25, 2005 7:50 pm
Post subject: Suze Orman

I've read quite a few of her books, and I have to say this is by far her best (The Money Book for the Young, Fabulous, and Broke). I read many books on pf, and this is one of the best I've come across. It's full of a lot of little details...I find myself using it like a "reference book" if I have questions. If you haven't picked it up yet, I'd highly recommend it.

I'd have to say, I agree with Suze on this point. I completely understand your reasoning, Polonius, and it makes complete sense. But, you have to think about the person who has gotten themself into credit card debt so bad that they need to use a HELOC to pay it off. Those who have run up 10, 15, and 20-thousand in credit card debt are for the most part living beyond their means (I'm not talking about those that have medical issue, hard-luck circumstances, etc.). I truly feel that the best way to never again get into credit card debt is to feel the pain of paying that money back. I like to think of it as part of the "therapy" on their way to recovery . For someone who has overspent enough to get into trouble, suddenly turning that unsecured debt into a loan on their house is VERY dangerous. More often than not, those same people will find themselves back in credit card debt.

Remember, if one defaults on their CC debt, they get a bad FICO score...if one defaults on their home loan, the lose the house they live in.

Author: polonious
Posted: Mon Jul 25, 2005 8:50 pm
Post subject: Suze Orman

Well, failing to repay a credit card debt can produce a judgment which in turn produces a lien on your house and/or car and/or garnishment of your salary anyway, in most states. Unsecured debt can turn easily into secured debt in this way. If you're in credit card debt and want to get out, reducing the interest you pay is the first step in my opinion--and a HELOC is a fine way to do that. Do I agree that those who abuse credit will continue to abuse it? Sure--most likely--but they'll get a HELOC and use it for a luxury car or an expensive vacation rather than use it to pay off other debts. It's sort of irrelevant what those people will do; they'll wind up homeless and in bankruptcy anyway if they are in a hole because of immaturity and frivolous spending.

Orman said something recently that I'm still pondering. She basically said it is a mistake to keep pouring money into a 401(k) or similar retirement fund (if there's no employer contribution). Her point is that it's better to put the funds into a regular investment account, forego the tax deductions today, and just handle the account properly from now on. She says that taxes today are extremely low, and that by acting this way you can still take advantage of reduced capital gains taxes. If you take out the money in your retirement instead, it will all be taxed at the usual income tax rates--and those might be much higher in your retirement years than they are today. Interesting, eh?

Author: rain
Posted: Mon Jul 25, 2005 11:47 pm
Post subject: Suze Orman

Quote:
Orman said something recently that I'm still pondering. She basically said it is a mistake to keep pouring money into a 401(k) or similar retirement fund (if there's no employer contribution). Her point is that it's better to put the funds into a regular investment account, forego the tax deductions today, and just handle the account properly from now on. She says that taxes today are extremely low, and that by acting this way you can still take advantage of reduced capital gains taxes. If you take out the money in your retirement instead, it will all be taxed at the usual income tax rates--and those might be much higher in your retirement years than they are today. Interesting, eh

Unless the regular investment a/c is a roth-IRA, you will still be taxed again when you withdraw this money in the years to come, albeit at the capital gains tax rate. So you're hit once now, with your regular income tax rate, and once later, with the cap gain tax.

If you defer taxation by putting your money in 401K or SEP, you'll be taxed at regular income taxes later.

So what you have to compare are
a) income tax now + opportunity cost (ie, after cap gains tax potential returns) + cap gain tax

versus

b) income taxes later

Therefore I don't think her statement "act this way to take advantage of reduced cap gains tax" is accurate. She's really comparing the wrong things.

Wasn't she advertising some cars late last year/early this year? I think I remember her saying authoritatively that cars are a good investment. That statement alone would cause me to lump her into the category of generic personal finance adviser who has sold out. Its just difficult to trust someone again once that element of doubt is induced.

Of course, her ads and her books serve different purposes, and you might argue that she was merely doing what anyone would do, sort of like a 3 michelin star chef promoting cusinenet or something. But what if it was a lifelong advocate for healthy eating (can't think of any right now!) suddenly promoting xyz diet pills?

Author: Polonius
Posted: Tue Jul 26, 2005 10:25 am
Post subject: suze orman

I was just paraphrasing Orman, so don't assume what I said was accurate. Her main point was that income taxes today are unnaturally low and that's unlikely to last. The assumption is always that in your retirement your income taxes will be lower than they are today because of reduced income that puts you in a lower tax bracket. But that may NOT be a good assumption these days. The withdrawals from your tax-deferred retirement accounts are always at your ordinary income rates. Capital gains rates are very likely to always be less than those rates, so I think she has a point. I know that as a self-employed person I can put large amounts into my 401(k) and reduce my apparent taxable income today easily--but that has its downside: banks look at the bottom line I report as business income, conclude I'm making virtually no income, and tell me I don't qualify for a mortgage or credit card because I make too little. That number I report is also used for future Social Security calculations. I'll have to do the math fairly carefully, but my guess is that for my situation I'd be better off NOT socking my money away tax-deferred but reporting it, paying taxes on it now, and doing what she says...

As for the car buying business, yes--Orman shilled for purchasing NEW GM cars last year, even though her books recommend people buy USED cars (uh, sorry, they're no longer used cars--they're certified pre-owned vehicles...I keep making that mistake). For some comments on that, see
http://www.mdmproofing.com/iym/articles/2004-11-20.html
and
http://www.mdmproofing.com/iym/articles/2005-02-15.html

Living Cheap in College

Author:barbarac
Posted: Fri Jun 03, 2005 11:18 am
Post subject: Living Cheap in College

anyone have any tips on living frugally? Being in college is tough on expenses. I tried to save as much as I could before coming to school but books were so expensive as well as wanting to eat out with friends. Do I have to give up having fun to be able to live an affordable life?

Author: Ira
Posted: Fri Jun 03, 2005 3:22 pm
Post subject: Living Cheap in College

Personally I'm amazed that anyone can afford a college education at a good school. Sorry but there are no magic bullets that I know of. You might try buying used books as much as possible. That could save as much as half. If you have a car, use it as little as possible. If you can get along without it and ride with your friends, that's more money in your pocket. Also, consider getting a part time job, or even switching to night school and get a full time job and earn while you learn. That's how I got my degree. Be creative, let nothing stand in your way, and you'll do fine.

Author: nixuzer
Posted: Mon Jun 06, 2005 10:07 am
Post subject: Re: tips on living frugally needed

barbarac wrote:
anyone have any tips on living frugally? Being in college is tough on expenses. I tried to save as much as I could before coming to school but books were so expensive as well as wanting to eat out with friends. Do I have to give up having fun to be able to live an affordable life?

Well the first thing I'd comment on is give up having fun as something that you might need to adjust your feelings on. The interesting part I found is that there are people I was hanging out with that were suffering from the same stresses and wanted to do something more cost effective but wouldn't speak up. Some would laugh when I recommended a cheaper alternative and others were interested in what I had to offer (although they wouldn't say it in the group sometimes but come to me later). Things like having some friends over and doing sandwiches and chips (everyone brings an item) while playing games was a much cheaper alternative and fun. We also tried to get people involved in finding activities that didn't cost anything but got us out, like riding bikes on a bike trail, etc.

There are many websites about frugal living but I've offered a few below. Most are geared towards families but you'll be able to find tidbits that will help. The thing that my family has found is frugal living is like saving, at first it seemed painful but now we enjoy it. My 8 year old came to me this morning excited that she has saved up $21.## over the last month doing extra jobs around the house and for neighbors, this wasn't an overnight thing for her but she is definitely getting into a saving mindset. This is the other 50% of the money she earned (we require our children to save 40% of any money they bring in and give 10% to charity).

Anyway, rambling over, here are the websites:
http://www.frugalfamilynetwork.com/
http://www.stretcher.com/
http://www.homeeconomiser.com/ (they have an inexpensive newsletter that we recommmend for families. Being single, I'm guessing, your expenses are so low that you could probably save money many other ways without having to spend a cent on any newsletters, etc)

The other item to keep in mind is network with other people about money saving things. It takes time to learn what is and is not a good price on daily staple items but over time you'll get there. Make sure you have a budget and live by it. You can make adjustments over time but a cash envelope system works really well. Statistically people spend significantly more using credit cards (for more information look at the following link and look for the bullet that starts with A typical credit card purchase ends up costing).

It takes time but I'm sure you'll get it figured out and don't hesitate to ask for help along your journey.

Author: skittles0220
Posted: Tue Jun 28, 2005 12:57 pm
Post subject: Tips for Living Frugally in Collge

Those are all great tips! As a professional student (yeah, I know, right ), I've been in this same situation. College is extremely overpriced - and when you add in all of the other necessities, it can be overwhelming. A few tips that have gotten me thru the years:

-Used books online. Check out auction and retail bookstore sites for used copies even cheaper than your school's bookstore. And sell back your books to these same websites. The school bookstore likes to be cheap as frequent as possible.

-Buy groceries in bulk. A membership to a club like Sam's/Costco will be more beneficial in the long run. And avoid eating out all the time. That adds up very quickly.

Most importantly, be well aware of your finances. DO YOUR RESEARCH. Look at your credit report and keep an eye on your statements. I've found http://www.studentfinancialguide.com to be my haven for information. I've learned so much in their articles.

Author: alohacamille
Posted: Tue Jul 12, 2005 12:32 pm
Post subject: Tips for Living Frugally in Collge

i'm glad i ran across this post! i was researching the net to try to find some financial info for students. it's really difficult being a college student these days. seems like tuition is always rising and the cost of living goes up with it.

thanks for the link jen. i'm going to check out that site, www.studentfinancialguide.com website for more help. the tips from everyone were also useful. i def. agree about buying used textbooks. i use half and amazon... it's saved me so much money in the long run.

Author: rain
Posted: Wed Jul 13, 2005 4:14 pm
Post subject: Tips for Living Frugally in Collge

I find being a semi-geek/nerd helps me save a lot of money. I have almost no "life" and spend my time online surfing credit forums. Eat when really hungry and there's nothing cool going on "online", and go out as seldom as possible, and then mostly to the parks in Chicago or maybe pay per entry for gym now and then.

Author: montana004
Posted: Tue Aug 09, 2005 10:02 pm
Post subject: Tips for Living Frugally in Collge

try to apply for scholarships, and student loans are also available (be careful with them, borrow only if you REALLY need)

yep getting a part time job helps

Author: cricket
Posted: Fri Aug 19, 2005 10:46 pm
Post subject: Tips for Living Frugally in Collge

1) Learn to cook. If you can read, you can cook. Have friends over for a home-cooked meal - they can bring the beer (more savings)

2) Scope out happy hours with free food - I lived on free food and half-price drink specials several nights a week when I was in college. Depending on where you go to school, you may need to forgo the "college" bars for "working professional" bars. Dress accordingly.

3) Books are just a rip-off - No way around it.

Author: maddybeagle
Posted: Tue Sep 13, 2005 1:13 pm
Post subject: Tips for Living Frugally in Collge

I found that there really is a lot of services (gyms), etc. that you can use. We also had a film club that was cheap per semester and you got to see movies every weekend. As if we had a lot of "free time" lol.

Author: sungod916
Posted: Tue Sep 13, 2005 9:34 pm
Post subject: Tips for Living Frugally in Collge

I would like to add that buying a George Foreman grill would be a great idea. You can buy meat in bulk and cook it quickly with the grill.

$50 bonus for signing up with Ing Direct Orange

Author: Polonius
Posted: Thu Dec 02, 2004 11:33 pm
Post subject: Ing Direct Orange Account

http://www.ingdirect.com/quicken5/
is a link to set up an Ing Direct savings account and get a $50 bonus deposited to your account. It's a promotion that's part of any purchase of Quicken 2005. You have to feed in a product number of a Quicken 2005 version on that page, such as 313737. (CompUSA lists the product numbers on its Web site for each Quicken product!)

Here are some more details.

Quote:

2.25% annual percentage yield in effect since 11/18/04 . This rate is variable and may change at any time.
$50 Bonus is only available for new accounts with a new customer as the primary account holder.
Limit one bonus per PN number. ING DIRECT Orange Savings Account.
$50 Bonus starts earning interest upon account opening, but is unavailable for withdrawal for 30 days. This is an online-only promotion.
This offer is only valid for purchasers of Quicken 2005 with valid PN numbers. Valid through 12/31/05.

I have no association with IngBank in any way and get no commission if you go for this offer--I just thought it was a nice way to make a quick $50 that anyone reading this could take advantage of. I don't see any "gotchas" in the offer. Enjoy.

Author: Ira
Posted: Fri Dec 03, 2004 10:20 am
Post subject: ING Direct Orange Account

I've been using ING for several years and they are a pleasure to deal with. They have one of the best web sites I have ever seen. The web site is so good I have never had to call them. I have also been using Quicken since the DOS days and currently have 12 years of financial records stored there. The one caveat is that you cannot get the $50.00 if you already have an account with ING. I tried several times using different email addresses, but I believe they check the social security number against their records.

All in all, Quicken & ING - a great combination.

Author: Polonius
Posted: Thu Dec 09, 2004 10:50 am
Post subject: ING Direct Orange Account

I can now confirm that the whole process went very smoothly. Although there was no mention of the $50 bonus in the sign-up process, when I confirmed my account (by reporting two small deposits Ing made TO my checking account), the $50 bonus was right there in my account balance.

And you're right (as usual) Ira--the Ing site is wonderful. One think I especially like is that it's written in plain English. Even the usual legalese of the account terms is prefaced by a paragraph telling you what the legalese really means, written in English even I can understand without thinking too hard.

Author: Ira
Posted: Thu Dec 16, 2004 11:38 pm
Post subject: ING Direct Orange Account

Glad you liked the site, Polonius. And the 2.25% interest on savings accounts isn't too shabby these days either!

Author: hesiden
Posted: Tue Feb 15, 2005 11:57 am
Post subject: ING Direct Orange Account

Emigrant Direct, looks very very similar to ING. No fees, no min. deposit. ACH to link to checking accouts, FDIC insured, etc. However the APY is 3.0% (not a teaser rate, guanteed to hold 3% or higher thru 2005).

http://www.emigrant-direct.com

Author: MDurai
Posted: Mon Apr 25, 2005 2:42 am
Post subject: ING Direct Orange Account

They are now giving 3.00%

Author: Ira
Posted: Mon Apr 25, 2005 2:32 pm
Post subject: ING Direct Orange Account

Actually Immigrant is now paying 3.25%. ING is not far behind at 3%. Goodness, do we have an actual price war here??

Gas Buying Tips

Author: diddlydudette
Posted: Mon Sep 05, 2005 4:20 pm
Post subject: Gas Buying Tips

I just read this somewhere. I never knew, but find it interesting.

Buy gas during the coolest hours - Buy gas during the early morning hours or evening when the air temperature is coolest. Gas is densest during the cooler hours. Gas pumps measure volumes of gas not the concentration of gas density. You will get more for your money during the cooler hours.

How to Get Approved for a Student Loan

Author: thejoshua
Posted: Thu Sep 08, 2005 4:48 pm
Post subject: How to Get Approved for a Student Loan

I am not considered an independant student , it's up to me to pay for school, no mommy and daddy. My question was really, how likely it will be that I get approved for a loan. I had a charge off a couple years back, that I have paid now in full as of Feb 2004. I have a BOA CC that I've had for a year with no lates, and one circuit city card that I've had only for one month. The toal year cost of the school would be $15,050, so I would need a loan of approximately $10k. How likely is it I would get approved? I would greatly appreciate any help you could give me.

Author: thejoshua
Posted: Thu Sep 08, 2005 6:47 pm
Post subject: How to Get Approved for a Student Loan

What I meant was I'm a dependant, even though I receive no help from my parents, because I'm not 24. The school is the aveda institute, it's in Charlotte NC. I am a resident but for the school it doesn't matter. The loan offered for the school is a sallie mae trade school loan. I am working but have only been at my current job 7 months, my last job was 3.5 years.

Author: lawyer2be371
Posted: Thu Sep 08, 2005 7:14 pm
Post subject: How to Get Approved for a Student Loan

When you say that you recieve no help from your parents, what exactly does that mean..

When you did your FAFSA, did you or did you not supply your parents tax return information...

And if so based on that information did they tell you that you were not eligible for any governmental loan program, or does the school you attend not participate in the gov student loan program.

The loan that you stated the school has, have you already applied, and been turned down, or are you asking what our your odds of being approved for that particular loan

Author: thejoshua
Posted: Thu Sep 08, 2005 9:03 pm
Post subject: How to Get Approved for a Student Loan

I'm trying to see if I have a shot at getting it. I have to use my parents info on my fafsa app. They however don't help me at all, with mine and there income I don't qualify.

Author: lawyer2be371
Posted: Thu Sep 08, 2005 9:27 pm
Post subject: How to Get Approved for a Student Loan

Well, If you could get your parents to cosign, the loan you might be able to get it Sallie Mae for the most part requires a cosigner, regardless to how good your credit is.....

Author: girlie
Posted: Thu Sep 08, 2005 10:49 pm
Post subject: How to Get Approved for a Student Loan

You might try calling the FASFA people (I had to call once its actually quite easy to get through and they are very helpful). Maybe there is some way you can appeal that rule. I have heard of other students appealing things like academic probation (not me because I am a total geek when it comes to school) and ending up with loans they were originally told they wouldnt get. Its just a matter of finding the loop hole, filling out the the right papers and jumping through their hoops. Maybe they have forms or something you can submit as proof that you completly support yourself.

Secondly if you havent had your parents fill out the FASFA with you as a dependent, you should try. The worse thing they can say is no. If your parents have a lot of assets and make a lot of money you probably wont get grants but you have to make some serious boat loads of money before you wont get federal student loans. I have heard of plenty of people not getting grants because of too much income - but loans are different.

Author: ladybug23
Posted: Sat Sep 10, 2005 2:09 pm
Post subject: Here's how I got around this . . . .

Hello --

I was in this same situation when I was first starting out. I was technically a dependent but receiving no support from parents. I guess in this scenario, your only option from the Feds in is a PLUS loan (loan your parents take out). I was able to get around this by having my mom's bank provide a letter saying that they would not approve her for a PLUS loan. Once it was demonstrated that my parents couldn't get a PLUS loan, I was able to take out the loans myself. This was at major state university.

I remember working with a school financial aid officer on this, so I would touch base with them to see if this would work.

Good luck!

Low Income Mortgage

Author: creditbuilder
Posted: Sat May 07, 2005 7:50 pm
Post subject: Low Income Mortgage

Is there any way for someone only making around 18K a year to get a mortgage without a big down payment? I would like to purchase about an 80-90k dollar house to rent out. My only bill is my car insurance, so I could afford to pay the mortgage myself during times when it's vacant. How can I get lenders to take a chance?

Author: CreditCardGuru
Posted: Mon May 09, 2005 12:16 am
Post subject: Getting a Mortgage with Low Income

There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap.

Author: homebuyer
Posted: Thu May 12, 2005 12:00 pm
Post subject: Getting a Mortgage with Low Income

CreditCardGuru wrote:
There is the old rule, what one doesn't know, won't hurt....don't let them know....LOL. I know here a lot of people get foreclosed houses really cheap

The problem with that is if you have a tenant you need to evict for any reason, I don't think you would have legal recourse to collect back rent from them or anything if you are renting out illegally. If you turn them in for trashing your house or leaving without paying their rent, you will also be getting yourself in legal trouble for having a tenant in a home being financed by FHA or other types of loans that don't allow income properties.

So if you do rent out your new home illegally you will be screwing yourself in the end if something should happen.

The status of the loan (investment property vs. owner occupied) shouldn't have any effect on your ability to take your tenant to court in the event that you had to evict them and collect back rent. That's what the lease agreement would be used for in court. I'm not a legal expert but I highly doubt that the court would base their decision on the occupancy status of your mortgage; it's simply a matter of a tenant not paying rent. Here's your escape: say you bought a house with the intention of living in it but after the loan closed (because of life changes) you decided to rent it out. You're not required to refinance your home just because you've decided to rent it.

Creditbuilder, you shouldn't have a problem getting a loan for a house with little or no money down. Debt vs. Income, you wouldn't qualify so you would have to have a stated income loan. You can get 100% financing but your middle credit score will have to be about 720+. (There are a few other ways to do this even if your cs is <720.)

Author: creditcardguru
Posted: Tue Jul 19, 2005 7:49 pm
Post subject: Getting a Mortgage With Low Income

Someone may wish to verify this, but I once heard that the lender would require proof (a track record) that the house would rent for a particular amount per month before they would loan on the property. Otherwise, you could claim that you could rent it for $1,500 a month, while it really would only rent for $700.

Author: BestMortgageInfo
Posted: Fri Sep 09, 2005 4:13 pm
Post subject: Getting a Mortgage with Low Income

What happens is that the appraisal is a 2 part deal. 1) Normal value of the home 2) "Market rent analysis" which determines the rental value of the home.

For a lot of lenders, even if you are not currently getting that much rent, they go by the figure in the rent analysis

Getting Fnancially on Track

Author: thejoshua
Posted: Wed Jul 13, 2005 1:41 pm
Post subject: Getting Fnancially on Track

After tax income is $1950 after bills I have about $1100 remaining. I have $4000 in the bank and about $200 CC balance. I have bad credit which I'm trying to improve, and only one card with one year of on time payments, no lates. In December I will have an extra $400 per month, after my car is paid off and my rent drops $100 although my bank account will be empty from the car pay off. I am not building credit on the car however because it's not in my name. I'm also starting school part time online at a loca community college, which hopefully will eventually land me a better job. My goal is to buy a condo in the next few years which average about $200k for my area. As for work I run a small service & retail business for an owner here in town. I take care of everything regarding the business. Payroll, inventory, bill paying, interviews etc. etc. Should I be looking for more pay for my experience?

Any suggestions onhow to reach my condo goal? Should I be searching for a new job? How can I improve my credit? Any help would be awesome.

Author: Sarasotatony
Posted: Wed Jul 20, 2005 9:35 pm
Post subject: Young person Getting financially on track

You are doing a lot better than I was at 22! Don't apply for any new credit for another year or two. Go to each of the three credit bureaus and buy your credit score ($6.95 for Equifax and $5.95 for the other two). Don't sign up for those credit monitoring deals--they are unnecessary. Don't forget: You can now get a free credit report from each of the bureaus. For great advice that helped me build up my credit, go to: www.bankrate.com Type in whatever key words in the search box and you will have all the financial information you need. Also: Tivo or watch the Suze Orman Show on Saturday night (MSNBC) (8:00 pm-10:00 pm eastern). She gives invaluable advice. Good luck!

Author: thejoshua
Posted: Thu Jul 21, 2005 2:58 pm
Post subject: young person getting financially on track

I actually just got a circuit city card and bought a TV interest free for two years, hopefull that helps out my credit a bit more.

Author: PFFrank
Posted: Fri Jul 22, 2005 7:15 pm
Post subject: young person getting financially on track

So, please, please, PLEASE be careful and pay off the balance sooner than later.

Banks that Offer Secured Loans

Author: needaloan
Posted: Mon Aug 22, 2005 9:23 pm
Post subject: Secured Loan

What popular bank branches offer secured loans, I am having trouble finding one?

Author: CompJock24
Posted: Tue Aug 23, 2005 6:33 am
Post subject: Secured loan

needaloan,

I personally just applied for an used auto loan. On the application it had a check box that asked for which type of loan I was applying for:

LOC (line of credit), Unsecured, Secured, or Credit Card. Under the Unsecured check box, it asks for how much I am requesting and for what "Purpose", however, under the Secured check box, it asks for how much I am requesting and what is the "Collateral"! Naturally, because I am taking out a used auto loan, my collateral would be the used car. Why? If I don't pay back my loan, the bank will take the car (reposess) away from me. That's what makes the loan secure - the bank will get something in return if I don't pay them back; as opposed to an unsecured loan (ie, personal loan) the bank has nothing to gain from you if you don't pay them back (hence the higher interest rates many will pay for a personal loan). But then again, I can't confirm this, but I think you might also be able to take out a secured personal loan as well, using your savings assets as your collateral...not 100% on that one though.

As far as what popular branches? Wachovia, Bank of America, SunTrust, Banco Popular, Third Fifth Bank, Wells Fargo....but I don't recommend doing this as you'll pay higher interest rates for these bigger "more popular" banks. I suggest joining your local Credit Union. They offer lower rates on all types of loans and best of all, as a member, you have co-ownership of the bank. To find a credit union nearest you, visit the Nations Credit Union Administration (NCUA).

Bad Experience with Wachovia

Author: CreditCardGuru
Posted: Wed Apr 20, 2005 11:44 pm
Post subject: Wachovia.....

I had a bad experience with Wachovia and I wanted to know if anybody else has any thoughts on Wachovia, hence they say they are ranked number one in customer satisfaction, and I doubt that. Thing is I used to work for them and they were nice to me at first, but it's like once I quit my job they wanted to be jerks to me....maybe that's just coincidence, but heck you never know.

Author: fire3000
Posted: Mon Aug 22, 2005 1:24 pm
Post subject: Wachovia

They treated me very well. I recently closed out two IRA accounts and I received my check in less than 5 minutes. Wachovia just acquired Southtrust bank. Ten months ago Southtrust doubled my existing home equity line of credit and did not charge me anything at all in fees or closing costs (I said I would not agree to any fees). Wachovia has lots of branches in my state of Virginia.

Tips for People who Over Spend

CreditCardGuru
Posted: Wed Apr 20, 2005 11:40 pm
Post subject: Tips for People who Over Spend

I run a debt management business alongside my job at B of A, and I have been giving this tip out for a while and people seem to love it as it works for them......sounds kind of stupid at first, but after you use it and experience it, it REALLY works....

Open multiple checking accounts, and deposit into all of them, spreading your money around, why this works is like a psychology game with yourself as with one account you just see this huge lump sum and want to spend it....not good....but with the three accounts you see three smaller numbers and tend to be more cautious with your money.....

Does Vonage Phone Service Work Well?

Author: Guest
Posted: Wed Feb 11, 2004 5:58 pm
Post subject: Does Vonage Phone Service Work Well?

Anyone using their service? If so, does it work well?

Author: GeoUSA
Posted: Fri Jul 23, 2004 3:09 pm
Post subject: Vonage Phone Service

I have had very good results from Vonage (www.vonage.com). I cancelled home telephone service through Verizon that ran about $36/month including taxes. I opted for Vonage's $14.99/month plan which includes many features and 500 minutes of calls to anywhere in the US or Canada.

At this time, very few taxes are added to Voice Over IP telephone service. There are just a few issues -- although none were a problem for me:

You must have high speed Cable or DSL Internet service

Despite what Vonage says, you may not be able to keep your existing number

You will need to connect your telephones to the Vonage device near your broadband modem or hire a company to extend the connection into your home's existing telephone jacks. This will especially be an issue if you have a home security system or Tivo-type of device.

Vonage requires that you dial 1 and the area code before all numbers (even local ones).

Author: HJM
Posted: Fri Jul 30, 2004 10:48 am
Post subject: Vonage Phone Service

GeoUSA wrote:
You must have high speed Cable or DSL Internet service

I think it is pointless to get Vonage if one has DSL because one has already paid local phone company for a phone line in order get DSL in the first place. I would just get the very basic phone service, then use long distance service like OneSuite.com which only charge 2.5 c per min.

Author: GeoUSA
Posted: Fri Aug 13, 2004 2:15 pm
Post subject: vonage phone service

Hi HJM. Verizon (one DSL vendor) has recently dropped their surcharge for customers who opt not to use their telephone service.

Curtis, my solution was to crawl through the attic and run a telephone cable from my computer room and then downstairs through closets to the television room. The new telephone cable provides service to my Tivo. I considered a wireless solution or an electrical outlet jack but there were numerous reports of people having problems with those systems. You can imagine the conversion from digital to analog and back again could make modem type connections spotty. Running the cable took a couple of hours but was worthwhile.

Author GeoUSA
Posted: Fri Oct 22, 2004 2:09 pm
Post subject: vonagae
My Tivo is a device for recording television programs to a hard drive. It allows me to watch TV on my schedule and fast forward through commercials.

I have some updates on Vonage service. They have updated their system, so I no longer have to dial 1 followed by the area code for local numbers. Yea! It doesn't sound like much of a problem, but made it impossible to dial from the caller ID display on our telephones.

Also Tivo began to have problems dialing out through the Vonage line. I ended up buying a new generation Tivo device that utilizes the wireless network in the house for "phoning home."

Also, additional taxes are being added to Vonage and other VOIP telephone providers. My $14.99 monthly bill is up to about $17.00. This is still a bargain compared to the $36 or so the telephone cost through Verizon.

Author: nixuzer
Posted: Thu Apr 28, 2005 9:07 pm
Post subject: vonage

Hello all.

We've been using on VoIP (primarily) and cell phones for over 6 months. We decided to go with AT & T CallVantage for a couple of reasons (however we would recommend 3 or 4 different VoIP vendors) but have also heard good things about Vonage.

If you're really interested you should probably spend some time on dslreports. They have some very informed consumers there and have reviews of all of the providers that I've ever come across.

The biggest issue for us has been that we had some Quality of Service (a.k.a QoS) issues but once I spent about 20 minutes on the phone with them and rebooted our Telephone Adapter (a.k.a. TA) service has been pretty good. We use Road Runner Cable (standard, not the enhanced service) and since our RR has always been really dependable we have not experienced any major issues. Every once in awhile they push an update to the TA they don't tell us about but a quick reboot when we're not able to make a call and we're good to go (this has happened twice in 6 months). My total bill with taxes is $36 which includes unlimited local and long distance.

Quote:
Also, additional taxes are being added to Vonage and other VOIP telephone providers. My $14.99 monthly bill is up to about $17.00. This is still a bargain compared to the $36 or so the telephone cost through Verizon.

GeoUSA, this is the Basic 500 plan correct? Or did you get some special promo for their unlimited local and long distance?

Author: creditcardguru
Posted: Fri Apr 29, 2005 12:06 pm
Post subject: vonage

I remember reading a while back that it is good, but since it is new still has problems, so I wouldnt make it your primary phone, I remember reading something about 911 not working and the possibility over time that since this is new tapping might be a problem, since it goes over the Internet.

Author: nixuzer
Posted: Fri Apr 29, 2005 12:29 pm
Post subject: Vonage Phone Service

CreditCardGuru wrote:
I remember reading a while back that it is good, but since it is new still has problems, so I wouldnt make it your primary phone, I remember reading something about 911 not working and the possibility over time that since this is new tapping might be a problem, since it goes over the Internet.

Actually the 911 does forward to the closest 'emergency' center not a 911 operator. This means that it might forward you to the firehouse that doesn't know they have an incoming 911 call so they're not quite as equipped as a 'true' 911 operator.

We've trained the kids that if they ever need to call 911 to use our cell phones instead. It just comes down to what you are familiar with.

Author: CreditCardGuru
Posted: Fri Apr 29, 2005 6:30 pm
Post subject: vonage

A little bit about Vonage and all those Unlimited calling things....they are VoIP...here's a link at the FCC where you can get info about it.

http://www.fcc.gov/voip/

Author: nixuzer
Posted: Fri Apr 29, 2005 10:09 pm
Post subject: vonage

CreditCardGuru wrote:
A little bit about Vonage and all those Unlimited calling things....they are VoIP...here's a link at the FCC where you can get info about it.

http://www.fcc.gov/voip/

Great link to teach some of the basics, there is a couple of small errors but nothing earth shattering. One example is the diagram shows the Phone Adapter (a.k.a. Telephone Adapter or TA) connecting directly to the internet. It actually connects to your High-Speed Internet Modem using a standard network cable and then out to the internet. Also your computer and phone connect to the TA (although the TA has different jacks for each). There are other 'built-in' advantages like all of the TAs I've seen has a built in firewall (to keep the bad, bad computer geeks out) and the wired models are usually free with sign-up. So you get a $40-$80 piece of equipment for free and it allows you to hook up 2-4 computers in addition to your phone.

Author: Iris
Posted: Fri May 20, 2005 5:58 pm
Post subject: Re: Vonage Phone Service

I haven't used vonage, but I've been using SunRocket for about three months now, without any significant problems.

$199/yr for free unlimited long distance to US and Canada, unlimited usage, includes callerid, call waiting, voicemail and all other features Ma Bell likes to charge extra for.

I also found an offer code for a set of two free Uniden cordless phones

I Bond Rate

Board Monitor
Board Monitor/ Administrator
Posted: Mon May 02, 2005 2:16 pm
Post subject: I Bond Rate

I just heard on the radio that the Ibond is now paying over 4%. Not bad in today's market. Any thoughts?
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com (501) 663-0314

Author: fire3000
Posted: Tue Jul 26, 2005 10:00 am
Post subject: I-Bonds

Yes, that is the current rate. It adjusts every six months and is based on the consumer price index (CPI). I buy the maximum allowed amount of $30,000 every year. I also am also buying $75,000 in TIPS this week. Interest from I-bonds is tax deferred until they are cashed in while TIPS interest is taxible each year. TIPS are the Treasury inflation adjusted savings bonds. I buy my bonds on-line at treasurydirect.gov. In October I will payoff over $85,000 in low rate credit card debt.

When Applying for a Checking Account, Is my Credit Run?

Author: elfygrrl
Posted: Tue Jul 19, 2005 10:12 pm
Post subject: When Applying for a Checking Account, Is my Credit Run?

Hi everybody,
This site's great. I've learned so much already. Thanks for all the free info.
Here's my problem. My credit score is in the early 600's and I have a discharged bankrupcy from 6 yrs ago. I've recently started getting credit cards again and I'm trying to do it right this time.

The only problem is that I'm having a hard time getting a checking account.
Any suggestions? Is it easier if I go into the bank rather than applying online?
I would much rather do it online. It's much easier than being rejected in person.

Author: maddybeagle
Posted: Tue Jul 19, 2005 10:18 pm
Post subject: Can't get a Checking account

why is hard to get a checking account. I started a checking account out of college (had no credit then) and was able to start. Try a credit union. Seems as long as you have money to deposit you can start.

Author: Sarasotatony
Posted: Wed Jul 20, 2005 11:50 am
Post subject: Can't Get A Checking Account

I ran into the same problem about fifteen years ago. Banks that have many branches around the state, or in other states will run a credit check and often reject those with credit problems. Go to a "Mom and Pop" (or small bank) in your town and you should have no problem opening a checking account. Also open a savings account there. Then after you are with them one year, apply for a $1,000 personal loan. This looks very good on your credit report. Don't apply for any other credit (especially credit cards) for a year or so. You will be on your way to reestablishing your credit. Also: Say nothing about the bankruptcy. Good luck!

Considering Buying a House

Author: Alexander
Posted: Wed May 04, 2005 4:12 pm
Post subject: Considering Buying a House

The coming housing bubble

Homes: U.K. went cold; U.S. could too, Money.com, 4 May 05

"Between the fourth quarter of 2000 and 2004, U.K. home prices increased 88 percent, on average, according to the Halifax house price index. U.S. home prices, meanwhile, increased 35 percent during that time, according to the National Association of Realtors.

The U.K. housing market started to gain steam in the late 1990s, beginning with the higher-priced properties in London and spilling over to virtually every region and every type of housing. "Buy-to-let" became all the rage as investors shifted funds from their traditional portfolios into rental properties. . . .

"It was rising at a 20 percent annual rate and then suddenly stopped in its tracks," said John Calverley, chief economist and strategist of American Express Bank in London and author of "Bubbles and How to Survive Them."

While economists disagree on whether the U.K. is experiencing a temporary lull or the beginning of a housing bust, buyers there seem to be waking up to the idea that double-digit price gains can't last forever. Prices overall have been flat, with small increases in some areas and declines in others. . . .

"My sense is that the U.K. market is two or three years ahead of the U.S. market," said Calverley. Every market has its own dynamic, but there are lessons to be learned from what's playing out across the pond. . . .

Yet, U.K. buyers -- who typically finance with monthly adjustable-rate loans -- did eventually take notice after the Bank of England started raising rates. By most measures, housing prices started declining in June 2004 after the bank's third quarter-point rate increase. . . .

According to the Council of Mortgage Lenders, lending to "buy-to-let" investors dropped 18 percent between the first and second half of 2004 – compared with only a 3 percent drop for owner-occupied buyers. During that time, the number of such investors unable to meet their mortgage payments increased 50 percent.

"People were buying thinking they'd rent it out and make 15 or 20 percent appreciation, but now they're left with only the rental yield," said Stansfield at Capital Economics."
http://money.cnn.com/2005/05/03/real_estate/investment_prop/lessons/index.htm

Author: nixuzer
Posted: Thu May 05, 2005 8:55 pm
Post subject: Considering Buying a House

Since I'm not sure of the tax benefits and implications of home ownership outside the U.S. this is intended to address people living in the U.S.

A group of guys that I meet with have actually been discussing this lately and we've arrived at different conclusions but the issue has been, Is a home a good or mediocre investment? Here are a few links that are food for thought, some relate to what some people are saying is the coming bust of the housing market in the U.S. The interesting part for me is that coming from the tech sector I'm starting to see the same statements being made by 'real estate gurus' that were being made by 'tech gurus' prior to the equity market crash a few years back (see 4th link)....just replace tech/computers with the term real estate/rental properties.

Like anything it is a speculative situation that you need to determine which speculators you agree with. As I've said in other posts...stay debt free (or get debt free), keep a 3-6 month emergency fund and never charge money on your credit cards you can't afford to write a check for right now..the only exception being a reasonable home mortgage. There are rare circumstances that will violate this (like an unexpected, expensive health crisis that you don't have coverage for, been there done that) but those should be a small fraction of the population and Ethan Allen's 'once in a lifetime showroom sale' does not qualify as an emergency that you must use your credit card for.

Don't get trapped in a housing bubble;
http://moneycentral.msn.com/content/Banking/Homebuyingguide/P37631.asp

Housing bubble is real, report says
http://moneycentral.msn.com/content/invest/extra/P87483.asp

Is your house really a good investment?
http://www.smartmoney.com/mag/index.cfm?story=feb02-investment

Housing mania will end in tears
http://moneycentral.msn.com/content/P108402.asp

In a market this hot, home buyers and investors can easily get singed. Here's what could happen. Plus: Tips to get you through unscathed.
http://biz.yahoo.com/special/realest05_article1.html

The Buy vs. Rent Decision
http://biz.yahoo.com/pfg/e10buyrent/

Rent vs Buy Calculator
http://home-equity.interest.com/content/calculators/rentvsbuy.asp

Growth Calculator (good for comparing different investments)
http://www.fidelity.ca/fidelity/cda/ext_app/growth_calculator_eng/0,,,00.html

Author: Alexander
Posted: Mon May 23, 2005 12:39 pm
Post subject: Buying a House

Good links. Thanks!

I think there is money to be made once the bubble bursts. I think that will be around 2007, but it might be a bit later. In areas where the price appreciation has not gone wild there will always be individual home owners who will sell at a discount. If we get a small recession or even just an economic slowdown along with rising interest rates people who handle their debt badly may not be able to file bankruptcy while they still have a job due to the new bankruptcy laws so there will be foreclosures even in nice areas.

Author Alexander
Posted: Mon May 23, 2005 1:25 pm
Post subject: Buying a House

If the federal government was running close to a balanced budget we would be due for our next small recession at the end of the decade but I think it will be sooner. Greenspan seems to want to get the housing bubble to burst before he retires which in Jan 2006 so if the fed keeps raising rates the stock market will slide first and then we may see a small economic down turn in the whole US economy in a year or two that will cause the bubble to pop on the costs.

In the heartland and the south east there may not be a bubble but their may be a period where home prices will be flat for several years.

There are other factors that can cause the housing bubble to burst. If China un-pegs currency and gets into economic problems or another major terrorist attack happens in the US that could be the event that stops the irrational exuberance. The normal price of a home almost always goes up 1% beyond inflation in the long term. Inflation has been around 2.5% for the last 5 years or so. So, the appreciation of a home should be 3.5% on average. Any place where the price has been going up over say 6% would be a place that could see a bubble bursting.

Author: nixuzer
Posted: Mon May 23, 2005 1:54 pm
Post subject: Buying a House

Alexander wrote:
Greenspan seems to want to get the housing bubble to burst before he retires

Would you mind providing some links to the fact that he wants to burst the housing bubble? I was aware of the fact that he was retiring but not that he wanted to burst the bubble (whether perceived or real).

The only thing I've seen is that he has stated that he sees some 'frothing' in the housing market and localized bubbles but not that he wishes to sqash it. Granted he has to be careful what he says (can anyone see him saying, "Yea there is a really bad housing bubble and everyone should sell now, refinance or get their debt down before this baby goes bad"...not likely)
I can't say that I can find a link that states that Greenspan intends to burst the housing bubble. You might check out Creamers site: He seems to think that Greenspan will keep raising rates until the housing bubble is burst even if it means making the stock market go down.
http://find.thestreet.com/cgi-bin/texis/rmyradio

In general, the price of a house rises exactly 1% beyond inflation over the long term and inflation is at about 3.25% right now and has been at about 2.5% for the last 5 years or so. So any market that is seeing price appreciation above 4% is seeing unrealistic price appreciation.

There are several factors that make me think that the bubble will burst soon.

1. Inflation up. Especially energy prices.
2. Productivity down. Declines in education and engineering prominence combined with the PC revolution ending.
3. A flat yield curve that is about to become inverted.
4. The bankruptcy reform bill is about to increase the number of home repossessions in up-scale neighborhoods.
5. Economic insanity. People are living beyond their means, charging more, and saving less.
6. The federal deficit. This will cause upward pressure in interest rates.

Home sales soar to record
"The median price of an existing home topped $200,000 for the first time, climbing to $206,000 nationwide, up about 7 percent from March and 15 percent from a year earlier. Half of existing homes sold above the median and half below. "
http://money.cnn.com/2005/05/24/news/economy/homesales/index.htm

Minutes show energy prices concerned Fed
http://customwire.ap.org/dynamic/stories/F/FED_MINUTES?SITE=VANOV&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2005-05-24-14-04-38

http://money.cnn.com/2005/05/24/markets/markets_newyork/index.htm

Greenspan Calls Housing `Speculation' Unsustainable (Update2)
http://quote.bloomberg.com/apps/news?pid=10000006&sid=al0s_e02NpsE&refer=home

Bubble bubble toil and trouble: duuhhhh edition

"The gap between income and Massachusetts home prices is the widest since the peak of the 1980s housing bubble, and that gap, intensified by rising interest rates, should cause home prices to dip later this year, according to an economic forecast released yesterday."
http://bluemassgroup.typepad.com/blue_mass_group/2005/05/bubble_bubble_t.html

The Fed sees bubbles -- and keeps them secret
http://moneycentral.msn.com/content/P108996.asp

The Fed Starts to Show Concern Over Bubble
http://www.realestatejournal.com/buysell/salestrends/20050519-wessel.html

Fed Governor - no housing bubble but sharp price falls in some areas
http://housing-bubble.com/news/fed-housing-bubble-010303.html

Fed voices concern at signs of a housing bubble
http://www.post-gazette.com/pg/05139/507226.stm

Greenspan Sees Bubbles in Housing
http://www.latimes.com/business/la-fi-green21may21,1,3482524.story?coll=la-headlines-business

Popping the Housing Bubble
http://www.qando.net/details.aspx?Entry=1686

San Francisco Bay Area Housing Crash Continues
http://patrick.net/housing/crash.html

Yield Curve Flattens Into "Danger Zone"
http://thehousingbubble.blogspot.com/2005/05/yield-curve-flattens-into-danger-zone.html

Historical Yield Curve
http://fixedincome.fidelity.com/fi/FIHistoricalYield

Housing, hedge funds spur bubble worries
Some experts fear low interest rates may have pumped too much cash into global markets
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/05/22/BUG5OCSNES1.DTL

Revolving consumer credit hovered above the $800 billion milestone in February.
http://www.cardweb.com/cardtrak/news/2005/april/7a.html

The Godzilla Economy
http://dsiegel.blogs.com/thoughts/2005/03/the_godzilla_ec.html

Moor inflation predictor:
http://fintrend.com/ftf/images/charts/mip20050518.gif

Author: Alexander
Posted: Wed May 25, 2005 11:56 am
Post subject: Buying a House

NPR Radio Program

Real Estate Reality Check

"For many Americans a house has become more than a home. It's become a personal ATM, a source of easy money.

The latest housing sales numbers show the country is still in the grips of feverish real estate boom that's driven the average price of a single family home up 50 percent. That means home equity loans and refinancing have become the new way to pay for vacations or college.

This frenzy has some economists warning that what goes up must come down. And if it does drop -- it's going to come down on top of a lot of people who are stretched far beyond their means. And since real estate helps the overall economy by giving consumers more money to spend...a market crash could hit home for all of us."
http://www.theconnection.org/shows/2005/05/20050525_a_main.asp

Author: nixuzer
Posted: Wed May 25, 2005 7:01 pm
Post subject: Re: OK

Alexander wrote:

The Fed sees bubbles -- and keeps them secret
http://moneycentral.msn.com/content/P108996.asp

All of the links you provided in the post were interesting but this one especially interested me. This has continued to be interesting as of course these poeple aren't going to say things are looking bad because they don't want to cause 'widespread panic.' As I seem to recall Greenspan saying before (but can't seem to locate it at the moment) sometimes it is hard to see problems until after they've occurred.

For some reason this whole thread got me thinking about a contract I was back in 1999-2000 where the company I was working for was partially owned by Enron. Everyone was converting their investments into Enron stock (or worse...borrowing to invest) because it was doing so well. A lilttle while after the 'announcement' I made a call to an old acquaintance up there to see how everyone was doing, he said the building was 'very quiet.' Fortunately I didn't get caught up in the hoopla and instead just kept working on getting debt free and getting some money for my emergency fund. Same mindset....If everyone is doing it maybe it is time to step back and look at the numbers which, Alexander, you've done a great job of starting to expose people to through the links in your posts. Time will tell what the reality of the situation is, hopefully for the sake of people that are overleveraged it is a somewhat soft landing.

Author: nixuzer
Posted: Fri May 27, 2005 9:11 am
Post subject: The real risks of
investing in real estate

Here's another good article that touches on the issues related to the overconfidence in the mortgage industry. It has some good, common sense approaches if you are going to become a real estate investor in the current market.

1. Watch your cash flow
2. Mind the cap
3. Don’t be in a rush
4. Know who’s paying
5. Have an exit strategy
6. Make sure it’s for you

Gift Cards From Mastercard

Author: robertmat
Posted: Wed Feb 02, 2005 7:32 pm
Post subject: Gift Cards From Mastercard

I just realized that a SwiftGift Mastercard Gift Card I received had expired. After looking into this the experation date was for only 3 months and I was shocked. I lost the balance of almost $100.

The trend in Gift Certificates these days is no experation date (Best Buy, etc...).

I would advise not giving these as gifts or promotions.

This is just more example of credit card companies gouging the consumer, who has no recourse.

Author: broon
Posted: Sun Jun 12, 2005 9:04 pm
Post subject: Gift Cards From Mastercard

Gift cards with an expiry date are probably very popular with the people that issue them.

In Canada you will find a mix of gift cards with or without expiry dates...

Buyer beware!

Author: Polonius
Posted: Mon Jun 13, 2005 9:43 am
Post subject: Gift Cards From Mastercard
In California, gift certificates/cards NEVER expire. A law was passed to ensure that. I've got a BlockBusters gift card that supposedly expired a few years ago, but I can use it today if I want.

Retirement Planning Calculator

Author: eujay
Posted: Sun Jun 05, 2005 5:41 pm
Post subject: Retirement Planning Calculator

HI,
Does anyone know the whereabouts of a good retirement calculator. I'm looking for one I can use for free.

I just bought a copy of this months forbes investment guide since it carries a story about retirement planning and gives a few web sites with planners. Only one of them is a freebie.

Soooooo. What I'm looking for is something that i can plug all my numbers into, (my income, the wifes income, current home value, mortage etc), and get a lot of "What if" scenario's.

I'm sure I'm not the only person looking for something like this.
Any help is greatly appreciated.

Author: Ira
Posted: Mon Jun 06, 2005 1:31 pm
Post subject: Retirement Planning Calculator

Try this site:

http://www.aarp.org/money/financial_planning/creating_plan/a2002-08-20-EvaluatingCashFlow.html

Actually try looking around the AARP site a bit more than I did. You might find some good references there.

Author: Polonius
Posted: Mon Jun 13, 2005 9:47 am
Post subject: Retirement Planning Calculator

Regardless of how you crunch the numbers, don't take the results very seriously. No one knows the future rate of inflation, housing costs, interest rates, value of your pension/retirement accounts (don't count on Social Security benefits--who know what they'll be when you retire?). Nor do you know when YOU or your spouse will die.

Some take those projections seriously and then run out of money when they live longer than expected or the stock market tanks. Some (like my parents) are afraid and put all into their pension funds instead of enjoying life--and then die young with a wad of cash that they could have enjoyed and didn't.

Personally, on the day of my death I want to have no assets and owe a half million bucks or more to the banks. Only problem is trying to figure out how to do that!

Buying Life Insurance

Author: eujay
Posted: Sun Jun 05, 2005 6:08 pm
Post subject: Buying Life Insurance

Hello,
I am currently looking for life insurance.
After browsing around a lot of different web sites I am beginning to wonder if the product I am looking for exists.

My take on Term life insurance is that it's a legalised theft. By the way I have a term life insurance policy but keep it as a security blaket for the wife in case "something" ever happened to me.

The way I see it Term life is something that I will pay in to for the term, (20 yrs), if I die during that time then OK my wife get 20 grand and everything is paid off. Now chances are that nothing will happen to me, I won't die anytime in the next 20 yrs so when the term is up what will I have? Nothing. I will have faithfully paid into the fund for 20 years and will end up with absolutely nothing to show for it.

In a worst case scenario my wife might outlive me and my kids might get the 20 grand when I die but since this will be a long way into the future they will likely be set up in their own lives and for them the money would be a welcome windfall.

So I am looking for a policy that is part life insurance and part annuity, or part life insurance and part retirement. Does such a thing exist?

Is it possible to get a policy that converts part of it's cash value to some kind of retirement benefit? If it's out there where can I find it.
Thanks for your help
Eugene

Author: nixuzer
Posted: Mon Jun 06, 2005 10:46 am
Post subject: Purchasing Annuities
and Other Types of Insurance

eujay wrote:
Hello,
I am currently looking for life insurance.
After browsing around a lot of different web sites I am beginning to wonder if the product I am looking for exists.

My take on Term life insurance is that it's a legalised theft. By the way I have a term life insurance policy but keep it as a security blaket for the wife in case "something" ever happened to me.

The way I see it Term life is something that I will pay in to for the term, (20 yrs), if I die during that time then OK my wife get 20 grand and everything is paid off. Now chances are that nothing will happen to me, I won't die anytime in the next 20 yrs so when the term is up what will I have? Nothing. I will have faithfully paid into the fund for 20 years and will end up with absolutely nothing to show for it.

In a worst case scenario my wife might outlive me and my kids might get the 20 grand when I die but since this will be a long way into the future they will likely be set up in their own lives and for them the money would be a welcome windfall.

So I am looking for a policy that is part life insurance and part annuity, or part life insurance and part retirement. Does such a thing exist?

Is it possible to get a policy that converts part of it's cash value to some kind of retirement benefit? If it's out there where can I find it.
Thanks for your help
Eugene

Actually I'd have to disagree with you here about term insurance. I have an Annuity (which I purchased during a time when I didn't really understand investments) and here is the low down.

The annuity has mutual funds and $100,000 insurance, it costs me just under $100/month. After 5 years the mutual funds have grown to over $5,800 and I still retain the $100,000 worth of coverage. Let's look at the returns from the policy. If I die at any time (lets say I live to the point where I get to be 55 years old...20 years from now...and the mutual fund portion gets up to $50,000) guess how much my wife gets: $100,000. Who is the recipient of the mutual fund proceeds at any point if I die, the insurance company. At the same time I purchased the Annuity I also purchased an additional $700,000 of term insurance, guess how much that is costing me (on a 70 year Term which is way too long but again live and learn) $66/month.

To contrast if I get $100,000 of Term Life now over a 30 year term (the longest I could look up online) it will cost me $134.00/year. So for a 1 1/3 months of my current Annuity premium I can buy an entire year's worth of term insurance. Take the remaining $1,000 per year and putting that in a mutual fund that earns lets say 8% over 30 years guess what I'll have in 30 years $83,566. So I won't have a life insurance policy at the end of 30 years but I'll have $83,566 that is mine to keep...at that point I'd be self insured for $83,566 and wouldn't need another policy. What happens if I die in year 19. My wife would get the $100,000 plus approx. $36,000 in the mutual fund. So which one of the two above scenarios would you say equates to theft: The Annuity or the Term Life using the remaining proceeds to purchase Mutual Funds

Plus I'll probably pay lower fees to the mutual fund that I purchase myself since Annuities usually have high fees as well as the penalities you'll incur if you decide to withdraw mutual funds at some point.

Raised Car Insurance Premiums

Author: eujay
Posted: Tue May 17, 2005 11:03 pm
Post subject: Raised Car Insurance Premiums

Hi All,
A few questions abput auto insurance?

My oldest daughter, (now 20), has had a few accidents. One of them was a real setup. She rear ended an off duty undercover cop who waited a year before claiming he had "neck pain". Cutting a long story short he knew how to work the system to his advantage and my daughters Auto Imsurance went up as a result of the claim.

Sooooo. At the time the whole family was with Geico and I shopped around and found esurance to be cheaper.

I called Geico and asked them to be noce and not charge so much. Now the daughter was with Geico because her Mom was with them for years and Grandma was with Geico all her life too. I did a quick calculation and figured that Geico sttod to gain roughly $30000 in business over my daughters driving career. So will they please drop the price?

I was surprised that they didn't drop the price so my daughter left Geico for Esurance and Geico have lost a lifetime of business.

Question? Has anyone ever been succesful in haggling insurance rates down on the basis of projected lost business?

OK. Several months later the same daughters car was stolen and recovered. She paid the $1000 deductible and esurance paid $2000 to fix damage to the steering column.

Now I'm expecting the renewal rate to be increased once again due to the second claim.

Question? I'm thinking about offering to pay esurance $2000 and see if they will maybe not increase the rates again. Has anyone ever tried this?

Author: nixuzer
Posted: Wed May 18, 2005 6:45 am
Post subject: Raised Car Insurance
premium due to Accidents

eujay wrote:

Question? Has anyone ever been succesful in haggling insurance rates down on the basis of projected lost business? Question?

I'm thinking about offering to pay esurance $2000 and see if they will maybe not increase the rates again. Has anyone ever tried this?

Question 1: Have tried and it doesn't seem to do any difference however we have a pretty good rate so our haggle hasn't been enough to cause us to leave since our company has done pretty well by us.

Question 2: Can't speak to this.

One thing I can say is that we've been pretty fortunate with our insurance company but we also do everything we can through our insurance company: Home Insurance, Car Insurance, Life (if it's reasonable). Plus we have an unusual rate code because my father-in-law has been with them for 40 or so years. We have used them since we got married and I moved my car over to their company which was 14 years ago. We've had a car stolen which was never recovered about 10 years ago (that was a $14,000 hit to the insurance company) without our rates going up, this has also included two small claims for windshield replacements (0 deductable at the time). Out prices aren't the lowest of some carriers but it's pretty close so we've continued to stay with them. Honestly the $30,000 you quote seems like a low amount; we've spent close to that in the 14 years we've been with them so I'd say that amount would probably be higher for you.

Author: consumercity
Posted: Wed May 18, 2005 4:02 pm
Post subject: Raised Car Insurance
premium due to Accidents

As an insurance agent I would like to offer the following information:

Unfortunately, insurance rates can not be haggled. Insurance companies have to file their rates with the states where they sell insurance. They are frequently audited by the state.

Let's say there is a girl your daughter's age who drives the same car as your daughter and lives in the same neighborhood. The other girl has the same driving record, claims history, credit characteristics and coverage amounts. If Geico charged the other girl for incidents on her record and didn't charge your daughter, they would be breaking the law.

It isn't that Geico doesn't want to lower your rate to keep your business, it's that they can't.

The best way to get the best rate is to shop independent agencies (representing multiple companies) and the internet.

0% Financing on a New Car

Author: CoffeeCrisp
Posted: Wed Dec 22, 2004 6:06 pm
Post subject: 0% Financing on a New Car

Do you have to have the credit history of God and all the Saints to qualify for those or can the average Joe qualify?Im talking about the ones from Chevy,Ford and Dodge.

Author: NightStar
Posted: Thu Dec 23, 2004 12:04 pm
Post subject: 0% Financing Offers

If you are referring to the zero financing and other deals they offer, then yes - you would have to have prime credit for that.

I would recommend pricing the car you want, then trying to apply with a local bank or credit union for the loan - then go back to the dealership money in hand for the car.

That is what I hear to be the best way to pick up loan, and not have your credit shopped to death by the dealership.

May help to pull your credit report, and scores direct from the 3 bureaus, then take that to the bank and ask them if it is good enough for a loan, that way if they know it is not, they can tell you and save having to pull the credit report themselve.

I have never bought a new car myself, always used here... one time financed a small ford escort I found for $7k, but that is the most I have ever looked to put into a car myself.

Author: dani24
Posted: Thu Jan 27, 2005 7:01 pm
Post subject: 0% Financing Offers

Last year my boyfriend bought a new Ford Explorer. He did get the 0% financing. His credit scores all fell in the 750-775 range. His credit history pretty much consisted of one credit card that he almost always paid off in full every month.

I also bought a new car, a month before he did. I also had credit scores between 750-780. The manufacturer I bought from did not offer 0%, and the low APR they offered would have cost me more in the long run than taking the cash rebates (make sure you look into that with any new car you buy, because a low APR does not always mean you'll save more money). However, I shopped around online before buying my car for a good auto loan rate. I got a really good rate through ELoan (5%), and brought it with me to the dealership. The dealership offered to see if they could beat it, and they did, by .25%. The terms were otherwise identical (no prepayment penalty, same length, no closing fees, etc.) It's best to have a loan secured beforehand, and if they can beat it, then go for it.

Also, check out www.carbuyingtips.com and read the whole thing front to back. I read through that entire site before I bought my car and ending up getting an almost unheard of deal on my car. I also negotiated the deal on my boyfriend's car for him, and got an incredible deal that had the finance guy at the dealership in awe. In particular, be sure to educate yourself about "holdback" and negotiate to get the dealer to cut you a portion of it. Another place to check out is www.carsdirect.com. In general, don't pay any more for a car than what you'd pay on that site. Use that as your high cost, and then negotiate for something lower than that.

Author: brokerkris
Posted: Fri Apr 29, 2005 5:11 pm
Post subject: 0% Financing Offers

I got 1.9% interest from GMAC with a 607 EQ (340 Auto Enhanced) score. Not bad for the low FICO.

Author: nixuzer
Posted: Thu May 12, 2005 7:20 pm
Post subject: 0% Financing Offers

dani24 wrote:
The dealership offered to see if they could beat it, and they did, by .25%. The terms were otherwise identical (no prepayment penalty, same length, no closing fees, etc.) It's best to have a loan secured beforehand, and if they can beat it, then go for it.

Having worked in the automotive sales industry before I can tell you that dealerships can get kickbacks from finance companies by funding your load through them at the time of purchase. So even if they match the rate tell them some like, "Well if you drop some $$ of the price of the car I'll go with you." Or work the situation in some other way, car dealerships make a tremendous amount of money in many ways so don't feel guilty in any way knocking them down in $$. The internet has only caused them to have to work more to make a profit, it has put them out of business in any way.

Vehicle Refinancing

Author: CoffeeCrisp
Posted: Tue May 10, 2005 2:04 pm
Post subject: Vehicle refinance question..

We currently owe 16,000 on our van at 7.95%. We can refinance the remaining 16,000 balance at 11.29 percent bringing our payments down from 420.00 to 350.00.

The rate is higher but now my payments would be less...

Stupid thing to do?

Heres the history:

We went BK 3 years ago.
Got loan for van at 9% orginally but refinanced to 7.5% which brought our payment from 450.00 to 420.00.

This offer I have now is the only offer we got thru Lending tree. Our fico scores are in the 650 range.

I appreciate any help!!

Author: CreditCardGuru
Posted: Tue May 10, 2005 7:58 pm
Post subject: Vehicle refi

Sounds kind of weird, usually payments go UP when interest goes up.....I personally don't like Lending Tree as they kind of screwed me on an auto loan. I would go to banks you know that are more likely to be "leniant" for refinancing! As they say the bank down the street might give you a loan, whie the bank two blocks down might not!

Author: Polonius
Posted: Tue May 10, 2005 11:03 pm
Post subject: Refinance
It's going to take you more than 5 years to pay off that van, and you'll be paying an additional $5,000 plus in interest.

It makes no sense at all to pay a higher interest rate and stretch a van payment an additional 5 years, especially since you've apparently owned it a few years already, right? Rule of thumb is to finance any car over no more than 4 years total.

Suck it up and pay the $70 extra to keep your low interest rate. Or just sell the van and buy something you can afford.

Author: CoffeeCrisp
Posted: Wed May 11, 2005 6:30 am
Post subject: Refinance

Yeah, the van is an 03 bought in 03. We can afford it but I was just looking for a smaller payment because I am a tightwad..lol.I was only looking at the short term. Thanks!

Author:damnage
Posted: Wed May 11, 2005 1:20 pm
Post subject: Refinance

Polonius is right on the mark here. I did some quick calculations. You appear to have approximately 40 remaining on the loan. If you take the higher interest rate and then stretch the term to 60 months (adding 20 more months) you arrive at your payment. You also end up paying about $2700 more in interest.

If you're a tightwad then keep more of your money in the long run by not paying that extra interest.

Also, vehicles are always depreciating due to age and mileage. Should you ever need to sell it you will get more of your money back by stickign with the terms you have now.

Be a real tighwad and stick with the loan terms you have now.