Sunday, October 18, 2009

Loans and mortgages – Negotiate for lower points

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Nothing is written in stone when it comes to the cost of a mortgage. With some research in hand, you can use your negotiating skills to bring down lender’s rates, points, or even fees.

The key is to arm yourself with information. Check the newspaper for current mortgage rates and points. Look online at Web sites like HSH Associates at www.hsh.com and LendingTree.com to compare rates from different lenders.

Be careful of lenders who advertise rock-bottom rates and points. They may compensate by charging outrageous fees. Let lenders know you’re shopping around so they will compete for your business by lowering their points. One point equals 1 percent of the amount of the loan. So if you convince them to take off even half a point, you can save hundreds or thousands of dollars.

If you need to choose between paying lower points or a lower interest rate, keep these things in mind.

* Choose the lower interest rate if you plan to keep the mortgage for a long time.

* Go with lower points if you plan to sell the house in a few years, since you won’t get the long-term benefit of a lower rate.

The same goes for fees. The longer you plan to keep your loan, the more fees you may want to pay upfront.

Remember to deduct any points you pay on your tax return. If you bought a house and split the points with the sellers, or even if the sellers paid for the all the points, you still get to deduct the full amount.



All the best,



Timben

Loans and mortgages – Experts can save time and money

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A mortgage broker can be a big help when you need a loan but don’t know where to start. These experts can look through loan offers and find the one that’s best for you.

According to the National Association of Mortgage Brokers, more than two thirds of homebuyers choose to get a mortgage through a broker. They save you time, and depending on their fees, can save you money. Broker fees usually range from 1 to 1.5 percent of the mortgage.

Some dishonest brokers may overcharge you with fees of eight to 10 points. Follow these tips to be sure you’re working with someone who has your best interests at heart.

* Get referrals from friends and co-workers to help in making the right choice.

* Request a good-faith estimate of the broker’s fees at the start.

* Get a written description of the loan program the broker offers so you can check out the rates, fees, and points.

* Ask the broker if he is affiliated with the lender to make sure he has no conflict of interest.



All the best,



Timben

Loans and mortgages – Be smart about home equity

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Need money for home improvements? Got a kid in college who needs tuition? Maybe you need start-up cash for a new business. You may want to consider a home equity line of credit (HELOC).

Although you borrow money against the equity in your house, it works like a credit account. Rather than take out one lump sum, you have access to the money as you need it. You don’t pay interest until you actually withdraw money, and even then, the interest is tax deductible.

HELOCs have interest rates averaging about 4.5 percent, which is low when compared to 10-year fixed loans with rates around 7.25 percent. But you may have starter fees, annual fees, and other costs like minimum-withdrawal fees, inactivity fees, and early-termination fees. So check the loan terms carefully. You don’t want to take all the money you saved with a low interest rate and spend it on other costs.

Although it’s best to save for any large purchase, a HELOC may be a good move if you don’t know exactly how much money you’ll need or when you’re going to need it. It also makes a good safety net in case there’s an emergency or a period of unemployment when you need cash right away.

But don’t forget it’s a loan against your house, and you could jeopardize your home if you can’t pay it back. Stay away from a HELOC if you have a spending problem or want to use the money to pay off an enormous credit card bill. You would just replace one large debt with another.

If you take out a line of credit, plan on paying it off within a few years. The interest rate on a HELOC is adjustable, so the sooner you pay it off, the less chance your rate will go up.

A HELOC can save you money if you use it wisely. But if you think having cash at your fingertips would temp you to over-spend, then be smart and find another source of cash.



All the best,



Timben

Saturday, October 17, 2009

Loans and mortgages – Save through loan consolidation

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Simplify your life by simplifying your loans. If you have several loans, you may be able to consolidate them at a low rate, saving thousands of dollars in interest.

Student loans in particular are easy to lump into one consolidation loan. If you have a child or grandchild who is graduating, he probably has more than one loan, each with its own interest rate. By combining all the loans, he can lock in one good interest rate and make one reduced monthly payment.

And because the lump sum is stretched out over a term of 10 to 30 years, the monthly payment is smaller and more manageable. The downside is you can only consolidate once, and a longer term means more interest charges on the long run.

If you choose to consolidate your loans, see if you qualify for any discounts. Some lenders offer incentives for good customers. Ask each of your lenders what kinds of discounts are available before you decide which one should consolidate your loans.



All the best,



Timben

Credit – Negotiate for a better rate

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You may get a lower interest rate on your credit card just by asking. If you’re a long-standing customer with good credit score, try bargaining with you current credit card company. You might be successful at getting a better rate.

You’ll have even more bargaining power if you get another credit card offer with lower rate. If it’s a genuinely good deal, use it to persuade your current card issuer to reconsider. Say you’ll switch unless they match the new card’s rate. If the answer is no, switch cards and enjoy your savings.



All the best,



Timben

Credit – Watch out for new credit scams

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The latest credit card scams may seem so genuine that you may not know you’ve been shammed until too late. Learn what you need to know to stop a scammer cold.

You may get a call from a con artist claiming to be the credit card issuer, your bank, or the police. The scammer may say your card has suspicious activity. He may even ask you specific questions about a purchase you never made and promise to remedy the problem.

But the scam comes when he asks for your PIN number, card expiration date, billing address, or part of the account number. The swindler already has most of the credit card information needed to steal your identity. He tries to get the rest from you.

The second new scam is the “gold and platinum card” racket. Some card offers may promise to improve your credit rating or help you get unsecured major credit or retailer cards. Not only do these cards limit you to purchase from a few select catalogs, they also do nothing to boost your rating or qualify you for unsecured cards. Watch out for these additional signs of gold and platinum card fraud.

* You only hear about one free. But once you’ve committed to pay it, you’re told you must pay even more fees to use the card.

* You must call a 900 or 976 number for more information – and pay the steep charges.

* You’re required to make a cash deposit for each item before you can put the balance on your charge card.

Protect yourself from any credit scams with these tips:

* Investigate credit card offers before you apply. Check with your local Better Business Bureau, consumer protection agency, or state Attorney General’s office for complaints against the credit card marketer.

* If a merchant promises to improve your credit rating, call the credit bureaus to see if the merchant is a member. Only members can send information about you to the bureaus.

* Keep an eye on your card during any transaction. Also, hold your card so no one can see and memorize your card number.

* Void incorrect receipts, and never sign a blank one.

* Save receipts to compare with billing statements. Open the statements immediately and check for questionable charges or wrong amounts. Report dubious charges to the card issuer right away.



All the best,



Timben

Credit – Save on unnecessary insurance

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For most of us, credit life insurance is just plain bad policy. Credit life insurance may claim to pay off your credit card debt if you die, or cover your payments if you become disabled of unemployed. But this insurance is notorious for overpricing, so consider buying term life insurance or expanding your life insurance coverage instead.

However, if you can’t qualify for regular life insurance coverage – term or otherwise – this coverage could be appropriate. If that’s the case, be sure to read the fine print before you buy.



All the best,



Timben

Credit – Ax useless card protection

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Even if you’re offered credit card loss insurance for just $7 a month, don’t take the bait. This insurance promises to pay the charges if someone steals your card and runs up a bill. But federal law would prevent you from paying more that $50 of the stolen charges anyway. If you buy credit card loss protection, you’ll spend $84 per year. Don’t waste your money.



All the best,



Timben

Credit – ID theft insurance not a bargain

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Identity theft insurance doesn’t necessarily cover the charges a thief runs up on your credit card or money stripped from your accounts. Instead, you may pay up to $180 per year just for the cost of repairing your credit after the theft. You’re better off skipping this insurance and checking your credit report regularly instead.



All the best,



Timben

Thursday, October 15, 2009

Credit – Beware of fee-heavy card upgrades

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That credit card upgrade from your mailbox may sound like a new and different card – and it could be one you don’t want. According to The Wall Street Journal, changes in your credit contract terms can be legally be called upgrades, even if they mean higher costs for you. For example, upgrades to rewards cards may carry a higher annual fee.

If you get a card upgrade, read the fine print carefully to determine whether you come out ahead. While you may discover advantages, watch for features you don’t want and for new or changed penalties and fees. If you’d rather keep your old card, contact the card issuer to ask how to refuse the upgrade and keep your old card in service.



All the best,



Timben

Credit – Watch for costly card tricks

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Credit card companies try all sorts of legal tricks to get your money. Fight back each month by scouring your credit card statement for surprise like these:

* Check the due date for your next payment. Card-holders have been blindsided by late fees and other charges because they didn’t notice the changed – and earlier – date.

* Monitor the interest rate. Even a fixed-rate card can change its rate as long as you’re given notice.

* Watch out for low introductory interest rates that sky-rocket a few months later.

* A practice called universal default allows credit card companies to change terms without notice – leaving penalty rates and fees free to rise. Creditors can also monitor your credit report and raise your interest rate if they see late payments on your other accounts. If your account is subject to universal default, switching to another card may be worthwhile.

Also, monitor how your finance rates are calculated. Some methods can be costly. The adjusted balance method subtracts this month’s payments from your previous balance – only charging interest on what is carried over. If no extra twists sneak in, this can be cheap.

The average daily balance method may either exclude or include new purchases. If it excludes them, it will add up all your balances from each day of the billing cycle and divide that total by the number of days in the cycle. “Including new purchases” works the same way but raises your balance every time you use the card – costing you more.

The previous balance method charges the finance rate only on the balance you had at the start of the billing cycle.

Two-cycle average daily balance methods are the most expensive. Where other methods might use the balance from one month, two-cycle methods impose charges for balances from the last two billing cycles.



All the best,



Timben

Credit – Uncover the right rewards card

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A credit card that delivers rewards can be a good deal. Just make sure you study the fine print in the offer or card agreement, and decide if the benefit is worth it. Web sites like these can help:

* www.creditcards.com
* www.e-wizdom.com
* www.creditcardscenter.com

According to the Wall Street Journal, cash reward cards give back around 1 percent. That means you have to charge a lot to earn any substantial savings. And you also have to spend quite a bit to earn enough frequent flier miles to take that Caribbean vacation you’ve been dreaming about.

But if you do use one credit card for your purchases, a rewards card might be a smart move. Just remember, if you don’t pay off your balance every month, you may get stuck paying more in interest than you earn in rewards.



All the best,



Timben

Credit – Find a money – saving card

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Get help finding a credit card that will save you money by using a free tool on the Web. Visit www.cardweb.com for a credit glossary, news about the credit card industry, useful articles, and a page that helps you find better credit card rates.

On the Web site, click on the Find a Card link. Either chooses the type of card you want – such as low rate, rewards, or no annual fee – or fill out a quick questionnaire for a list of only the cards that match what you want.

Just remember to use your credit card with care, and avoid running up debts that could take years to pay off.



All the best,



Timben

Credit – Build your credit history wisely

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Budgeting your money so you don’t depend on credit cards is the responsible way to live. But when you do use credit cards, a wise strategy can help you build or restore a good credit score. Keep a good credit rating with these tips:

* Avoid frequently opening new credit card accounts.

* Open a new account only when essential, and be sure to read all the fine print before you do – especially information about fees, penalties, interest rates, billing periods, and grace periods.

* Pay on time.

* If you have been denied cards due to a poor credit score or no credit history, consider a secured card. It may help build a good enough credit history to qualify for an unsecured card after a year or two. Try for a low interest rate if you expect to carry a balance. Otherwise, seek a card with no annual fee.

* Thirty percent of your credit score depends on how much of your total credit limit you use. Charge no more than 20 percent of your total available credit so your score won’t sink.

If you’ve made the mistake of opening too many accounts, order your credit report from all three credit bureaus. Find out which credit cards you have, check for mistakes, and get errors corrected.

Next, pick which cards to keep. Favor older cards because lenders prefer a long history of faithful bill paying. Keep at least, one low-rate card. Also, determine how much balance you’ll have each month. Then, select cards so that your total credit limit is five times that number, if possible.

When you choose which cards to pitch, pay off the balances and then call to close them.



All the best,



Timben

Tuesday, October 13, 2009

Credit – Calculate which credit card to cancel

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Belinda has five credit cards. Two are idle, so she decides to cancel one. But before she does, she checks whether cutting a card might cut her credit score as well.

Belinda’s current total balance is $1,500, and her total credit limit is $12,000. She is currently using a 12.5 percent (1500/12000) of her available credit, which is well below the 12-percent recommended limit. But that number could change drastically if she cancels the wrong card.

Belinda’s appliance store credit card has a zero balance and a $5,000 limit. If she cancels that card, her limit totals will shrink from $12,000 to $7,000. But a $1,500 balance divided by $7,000 would be around 21 percent. Because that’s more than the credit scorers’ 20-percent safety limit, Belinda’s credit score could drop.

On the other hand, Belinda’s department store card has a zero balance and $1,000 limit. If she cancels that card, her total limit will slide from $12,000 to $11,000. Credit scores will divide $1,500 by the 20 percent that triggers a credit score drop. Belinda will play it smart and cancel this card instead.



All the best,



Timben

Credit – Close credit cards with caution

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Closing several credit card accounts won’t improve your credit score and could bring it down. Here’s why.

One factor credit scoring considers is how much of your total credit you use. To calculate that, credit scorers divide the total balance on your credit cards by the total credit limit available on those accounts. The results is a fraction – the lower, the better, Canceling cards can raise that number, which is bad for your credit score.

If you still want to cancel your unused cards, only cancel those with zero balance. And if you plan to buy a house or car soon, don’t close them until after you qualify for a loan.



All the best,



Timben

Credit – Protect your score from card-hopping

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Opening a new zero-interest card account every few months may seem like a money-saving idea, but it could sink your credit score. A number of factors go into calculating your credit score. How often you’ve applied for credit recently is one of them, and so is the percentage of available credit you’ve used.

Each new card may knock your credit score down a little more. However, if you have a long credit history, the drops may be less steep. The dip in your score may last just six months – unless the new card brings new trouble with it.

* Watch out for high balance transfer fees, low introductory rates that skyrocket after a few months, and any other fees that will make a switch more expensive than keeping the old card. These could boost your debt instead of slashing it.

* Be careful about transferring a hefty balance to a zero-interest or lower-interest-rate card. If the transferred balance is more than half your new card’s credit limit, that transfer may trigger a credit score drop. Pay that debt down below 50 percent of the limit, and your credit score should recover.

* Avoid card-switching or opening new cards if you plan to apply for a car or home loan in the next 12 months.

While switching to a zero-rate cards has helped some consumers pay down their balances, card-hopping can still be a risky strategy, and it’s not right for everyone.

Instead of card-switching, look into other solutions, such as Bankrate’s Pay-down Advisor. Visit www.bankrate.com and click Credit Cards. Scroll down and click the link, Pay off balances quickly under Pay off your debt. Answer the questions to find various solutions you can try.



All the best,



Timben

Tuesday, October 6, 2009

Credit – Ban pre-approved credit junk mail

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“You’re pre-approved for thousands with our platinum card,” proclaims that tantalizing offer from you mailbox. But that offer can pile up interest charges, build debt, and raise your risk of identity theft. Don’t be tempted, especially if you’re debt prone. Instead, help yourself save money by opting out.

Opting out means you ask the credit card bureaus to strip your name from their marketing mailing lists – the source of most pre-approved credit offers. Tell the bureaus to block those enticing envelopes for just two years or for life.

To opt out by phone, call toll-free 888-567-8688. You’ll be asked for personal information, including your name, telephone number, and social security number. Don’t worry – these details remain confidential and are only used to process your request. Just remember, you may have to fill out and return a consent form if you want the offers to stop permanently.

The offers won’t stop coming right away, so what can you do while you wait? Don’t risk a rip-off that could ruin your good credit rating. Before you throw that “junk” mail away, shred all pre-approved credit offers right down to confetti size. A whole offer in your trash can help thieves steal your identity, but confetti just leaves them frustrated.



All the best,



Timben

Credit – 9 ways to erase credit card debt

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You might save thousands of dollars in interest just by controlling credit card debt. Get started with these nine ways to erase your credit card debt fast.

* Find out how much total credit card debt you owe. Then figure out how long it will take to pay it all off – with the interest charges included.

* Transfer your high-interest-rate balances to one card with a low interest rate. Or pay off your higher-interest-rate credit cards first.

* Track your spending. You may be surprised at where your money is going. Prepare a budget that slashes unnecessary spending, and stick to it. Use the savings to pay off debt.

* Don’t just pay minimum every month. If you owe $1,000 on a card with a 17 percent interest rate, it may take 12 years and cost over $900 in interest by the time you pay it off.

* Never use credit card cash advances to make payments on other accounts.

* Stop using credit cards, and don’t open any new charge accounts.

* Always make payments on time.

* Get a second job to help pay off your debts.

* Try a credit counselor if you want outside help. Contact the National Foundation for Credit Counseling (NFCC) at 800-388-2227, or visit www.nfcc.org. The NFCC can provide credit education and counseling and help you get better terms with your lenders.



All the best,



Timben

Credit – Pay zero for your credit report

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Checking your credit report at least once a year can pay off – especially if you catch mistakes that affect your credit rating. And now you won’t have to pay for the report itself, thanks to a change in the Fair Credit Reporting Act. After Sept. 1, 2005, you can get a free credit report every year from each of the three major credit bureaus.

Even if the program is not yet available in your area, you can get a free credit report if you’re denied credit, insurance, or a job because of information in your credit report. But you must request the report within 60 days of receiving notice of the denial.

To get your free credit report, visit www.annualcreditreport.com, or call toll-free 877-322-8228. You can also write to the following address.

Annual Credit Report Request Service,
P.O. Box 105281,
Atlanta, GA 30348-5281

Be ready to provide your name, address, and social security number. You may also be asked for other information. Then you can choose to get just one credit report or all three – one from each bureau. If you like, you can get one now and return to check one or two of the other reports later in the year.

Perhaps the only bad news about this program is that your credit score does not come with your free credit report. However, you can choose to purchase your score when you request a free report.

If you find a mistake in your report, contact the credit bureau responsible for the report, and ask how to get the report corrected. Here’s how you can reach these organizations.

* Equifax at www.equifax.com or the phone number at the bottom of your Equifax credit report.

* Experian at www.experian.com or the number at the bottom of your Experian credit report.

* Trans Union at www.transunion.com or 800-916-8800

And here is a bonus tip. To help prevent identity theft, ignore those ads, e-mails, and telemarketing calls that promise a free credit report. After all, they could just be scammers hunting for a way to steal your identity. Don’t take the chance.



All the best,



Timben

Monday, October 5, 2009

Credit – Reap benefits of a high credit score

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A credit score is a number between 300 and 850 that serves as a snapshot of your credit report at any given time. A low credit score could cost you up to $240 extra per month on a $100,000 mortgage, according to one estimate. That’s more than $2,800 per year – even with rock-bottom interest rates.

Improving a low score can benefit you because a variety of people use it to help make decisions.

* Insurers may charge you a lower premium on car or homeowner’s insurance. People with poor scores may pay extra and may be denied coverage or renewal.

* Lenders may charge you lower interest rates, fewer fees, or smaller fees – and grant you higher credit limits.

* Private mortgage insurance (PMI) may cost less.

* Landlords may request your credit score to help judge whether you’ll pay rent regularly and on time. A high score could mean your rent application is less likely to get turned down. Deposits and fees might be lower, too.

* Your credit score may play a role in whether you’re chosen for a job – particularly if the job requires you to be responsible for money.

* Utility companies – including cell phone service providers – may consider your credit score when they decide whether to offer you their services.

To help improve your credit score, find out what it is, and make sure mistakes on your credit report aren’t keeping it artificially low. You score will cost you, but you can purchase it while getting your credit report for free. If you find mistakes in your credit report, correct them.

Use these tips to help work toward a score of 720 or higher. Every little increase can help.

* Collections and late payments sink your score, yet that score improves as you build a history of paying bills on time. If you’ve missed payments, get current and keep current.

* Pay off large balances on credit cards. Keep those balances low.

* Don’t open unnecessary new credit cards just to boost available credit.

* Handle your cards with extreme care. Keep the balances as low as possible, and meet every monthly payment deadline.



All the best,



Timben

Banking Services – Spend zero on financial software

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Imagine having the money-managing power of Intuit’s Quicken or Microsoft Money without paying for the software. You might – if you ask about free online services available from your bank or broker.

Compare the features of financial software with online services to see if online tools offer everything you need. For example, if you plan to spend hours tracking every penny for budgeting, Quicken or Money may still suit you.

But if you want to pay bills online or review all your bank, investing, and credit accounts in one place, free online services work just as well – without costing you anything extra.



All the best,



Timben

Banking Services – Online bill pays off

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Online bill paying could be a clever way to save – especially if you can do it for free. While the cost of mailing bills may not seem like much, it adds up quickly. And if you’ve ever had bills buried under paperwork or get delayed in the mail, you know how expensive late fees can be.

But online bill paying allows you to pre-arrange payments each month – perhaps up to a year in advance for fixed-rate bills. What’s more, some bill-paying services even offer to send you reminders so deadlines won’t slip by.

Before you commit to a bill-paying service, ask questions like these to check whether the service is a good deal for you.

* Does the bank provide a way for you to authorize an amount and date for a bill’s payment?
* Can the bill be paid and delivered even if the company is not available online?
* What features are included in online bill paying?
* What is the cost of online bill paying, and are there any requirements you must meet to use the service?
* How does the bank protect the privacy and security of personal and financial information?
* How long does a payment take to reach the biller?

Learn more good questions to ask, and read sound advice on both online banking and bill paying from the Federal Deposit Insurance Corporation. Visit www.fdic.gov and click the Consumers link. Under Consumer Resources, click Safe Internet Banking.

You can also write or call the FDIC for information at the address below.

Federal Deposit Insurance Corp.
550 17th Street, N.W.
Washington, D.C. 20429
877-275-3342



All the best,



Timben

Banking Services – Cut yourself a check deal

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You may get a much better price on checks if you buy from a third-party check seller. Order a catalog or visit Web sites of vendors like these.

* www.walmartchecks.com
* www.checksunlimited.com or 800-204-2244 for a catalog.
* www.checkworks.com
* www.4checks.com
* www.checksinthemail.com or 866-639-2432 for a catalog.
* www.deluxe-check-order.com

Compare the prices these sellers charge with what you pay now. If you’d like to buy from these or any other third-party check sellers, you should take a few precautions.

* Ask about the security measures included on the checks, or look it up on the Web site.
* Find out how your personal information and privacy are protected.
* Check with you local or state Better Business Bureau, consumer protection agency, and State Attorney General’s office to learn whether complaints have ever been filed against this seller.



All the best,



Timben

Banking Services - Fend off bounced-check fees

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A bounced check can trigger multiple penalty fees from your bank as well as additional fees from the business receiving the rubber check.

The best way to avoid such fees is to manage your account so you don’t overdraw any checks. But if you think you need overdraft protection, your bank may allow you to cushion checks with money from your savings account, credit card, or a line of credit. Even if you must pay fees or interest, they may still cost less than one bounced check.

One warning – some banks automatically enroll customers in their own overdraft protection plans, which have unreasonably high interest rates. You should check with your bank, and opt-out in writing if you find that’s the case.



All the best,



Timben

Saturday, October 3, 2009

Banking Services – Discover direct deposit discounts

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Banks may surprise you with discounted or free checking if you agree to “direct deposit” service. Under direct deposit, your employer deposits your paycheck directly into your bank account instead of giving it to you first. That means, you won’t have to visit the bank to deposit a check – and your paycheck can’t get lost or stolen.

Ask your employer if direct deposit is available. Then ask your bank what benefits you can expect if you agree to direct deposit. You may be pleasantly surprised.



All the best,



Timben

Banking Services – Escape the ATM surcharge trap

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Don’t get nickel and dimed to death by automated teller machine (ATM) fees. Use these tips to help avoid them.

* Use your own bank’s ATMs whenever possible.

* Find out if your bank belongs to a selective surcharge network. If so, you can use an ATM from any bank in the network without being charged for a fee.

* Ask for cash back when you use your debit card for a purchase.

* If you’re shopping for a bank, consider major banks with far-flung ATM networks or online banks.

* Plan ahead so you never have to make an “emergency trip” to fee-charging ATM.



All the best,



Timben

Shop smart at membership clubs

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You could save 26 percent on groceries and get rock-bottom deals on many other items at warehouse clubs, such as Costco, Sam’s Club, and BJ’s. These stores keep their costs low by selling in bulk, running a no-frills store, hiring less staff, and not advertising as heavily as their competitors. They pass the savings along to you. Often, they sell appliances, office supplies, even electronics in addition to groceries.

Unfortunately, they have disadvantages, too.

* Most membership clubs do not accept coupons, offer weekly specials, or sell generic brands. You may do better doubling coupons, checking grocery ads, or buying generic from your local grocer.

* They sell in bulk, which can yield great buys, but 5 lbs, of butter at 30 percent off is no bargain if it goes bad before you use it.

* They may not tell you the unit price, such as the cost of shampoo per ounce, like grocery stores do. That makes it hard to comparison shop. Check unit prices at other stores before you go to a warehouse club, then bring a calculator and do your own math.

* Their low prices can tempt you to buy things you don’t need. Shop with a list and stick to it, and only carry cash to limit your spending.

* They offer lots of different products, but little brand variety. For instance, you might find 10 brands of spaghetti sauce at grocery store and only two at a warehouse club. Decide if you want better prices or more choices.

* They rotate their stock, so the brand you like may not be there next time you go.

* Some only accept one kind of credit card but offer their own as an alternative – at exorbitant interest rates. Sign up for one, and they may also sell your personal information.

* They charge an annual membership fee, usually between $25 and $40 dollars. Some give guests one-day passes, as often as you want, to shop there, but tack on a 5-percent surcharge at the register. Still, if you spend less than $500 to $800 dollars a year there, you are better off getting a guest pass than buying a membership.

Some clubs offer free trial memberships, up to 60 days. Call and ask about this policy then test the place out before you join.



All the best,



Timben

Friday, October 2, 2009

Superstores not so super

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Giant specialty retailers, like Babies “R” Us, Toys “R” Us, even PetSmart and others, are neither discount stores not outlets. They are large, specialized department stores. In general, they don’t offer cut-rate merchandise. Instead, they offer a better variety than you’ll find at most other stores, but with bare-bones service. It’s a trade-off – more choices, less service, and few discounts.



All the best,



Timben

Safety checklist for used items

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Classified ads, thrift stores, and yard sales can be the best places to pick up inexpensive baby gear and furniture. But for safety’s sake, make sure the items passes these tests before you take it home:

* Is the construction still sound? Check for broken pieces, loose joints, and splinters.

* Do all the parts work properly? You don’t want a stroller to collapse with your child in it, or the car seat to come loose in an auto accident.

* Is it clean? In other words, would you let your child chew on it? Some items can be easily cleaned, others not. If not, don’t buy it.

* Could a child hurt herself with it? The U.S. Consumer Product Safety Commission (CPSC) warns some seemingly innocent items could kill children. A crib should have a firm, tight-fitting mattress and slats no more than 2 3/8 inches apart so a baby’s head cannot squeeze through item.

Has it been recalled? Find out by calling the CPSC toll-free at 800-638-2772 or visiting their web site at www.CPSC.gov.



All the best,



Timben

10 clever ways to save at yard sales

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* Make a list of things you need to buy over the next several months, then stick to it. Items you don’t really need will just clutter your house.

* Start early or go late. You’ll find the best variety first thing in the morning, especially in furniture and appliances, but you’ll snag the best deals at the end of the day when weary sellers are ready to bargain.

* Look for lifetime guarantees. No garage seller will guarantee their goods, but some companies will. Tupperware, Farberware, Chicago Cutlery, and Craftsman tools all carry lifetime guarantees backed by their manufacturers. So go ahead and buy the cracked Tupperware or rusted Craftsman wrench and call a dealer to exchange it.

* Ask for items you don’t see. Need a baby stroller? Ask the seller if they have one. They may have forgotten to put it out, or another customer might tell you where you can find one.

* Think creatively. Buy items for their parts – cut rate clothes for their nice buttons, lamps for their shades, and so forth.

* Don’t waste time at high-priced sales. You only want bargains. Some people are out to make money, not get rid of stuff, and they’ll refuse to negotiate.

* Make sure it works. Ask the seller if you can plug in an item, or if they have batteries to test it. If they say no, don’t buy it. It might be broken.

* Check all clothes for stains, buttons snaps, and working zippers. If you can’t tell whether a stain will wash out or not, it’s best not to buy.

* Always come prepared with coins and plenty of cash in small bills. Carry it in a pouch around your waste rather then purse you might set down and forget

* Ask for lower price if you don’t want to pay what a seller wants. The worst they can say is “no”.



All the best,



Timben

5 secrets of the best bargain hunters

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From clothes to a playpen, you can get virtually everything you need for free or darn close to it.

* Stop by garage sales. You could snag fantastic deals, especially if you offer to take an entire bag or box of baby things off their hands.

* Create a network of people who know your needs. A quick phone call or e-mail is a great opportunity to let friends, neighbors, and family members know you’re looking for baby bargains. Tell them specifically what you need, and ask them to keep an eye out for hand-me-downs and other good deals.

* Plan a swap meet. Churches, preschools, and community clubs are great places to meet and organize swaps with people who have baby items. Make it a swap party. You could even decide in advance what each person will bring, and link them up with someone who needs the same thing.

* Look for public bulletin boards in your grocery stores, pediatrician’s office, church, and school. Here you may find parents trying to sell or give away their baby items. You can also post an ad of your own, asking specifically for the things you need. Be sure to ask the organization or company about their policy for posting “want” ads.

* Offer a trade with the people you know. Barter for their goods with something you know they need – a service like babysitting, cooking a meal, or even an item you own but no longer need. It’s a great, cheap way to help each other out.



All the best,



Timben

9 Discounts

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Pocket an extra $100 a month or more with money-saving auto insurance discounts, available from most insurance companies that could save you a bundle:

* Good driving record
* Mature Driver
* Longtime Customer
* Defensive driving course
* Carpooler or low-mileage driver
* Anti-theft device or car satellite recovery system
* Safety measures, like air bags and anti-lock brakes
* Nonsmoker
* Good student



All the best,



Timben

More ways to save

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There are even more ways to save money on auto insurance for the determined car owner. Driving less frequently or car-pooling could earn you a discount, especially if you drive fewer then 5,000 or 6,000 miles a year. Parking your car in an enclosed garage instead of parking on the street could also get you a discount. Some companies even give discounts for being a police officer, a teacher, or a retiree. The discounts are there. You just have to ask.

So far these tips have been helpful if you already have a car. If you’re in the process of buying a car, keep this in mind – the type of car you drive affects how much you’ll pay in insurance premiums. Choosing a car with a higher safety rating lowers your premiums.

To find out the insurance ratings of different cars, check out Consumer Reports annual car buying guides. The Insurance Institute for Highway Safety is another good place to look for statistics that could affect your premiums. Call 703-247-1500 or visit www.carsafety.org to contact them and find out the rating for your future car.





All the best,



Timben

Head off debt with GAP insurance

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GAP insurance keeps you from paying for a car you no longer have. This Guaranteed Auto Protection insurance pays the amount you’ll owe if your car gets totaled and you’re left with a loan that is more than the total worth of your car.

So if you owe $20,000 for a car the insurance company says was only worth $16,000 when it was totaled, GAP insurance will cover the remaining $4,000. At prices from $15 to $45 a year, it’s good value. Consider buying it if you’re making down payment of less than 20 percent.



All the best,



Timben