Dollars And Nonsense

Are you familiar with the phrase “More Month Than Money?” It means running short of money either before the end of the month or before your next payday. It’s a condition with which most wage earners are familiar. It was my problem for many years.

I’ve been married to Lois Lane for more than forty years. We raised two daughters. I’ve had several “careers,” and, I’ve always had a decent income. what I didn’t always have was an effective way to manage my income. I’m not an accountant; just a breadwinner who, when I first got married, couldn’t make the ‘bread’ go far enough.

For about the first ten years of our marriage, I used trial and error money management. even though I had a good job with a decent salary, I never seemed to consistently have enough money to both pay my bills and for day-to-day expenses. one payday we would have more than we needed; the next we would run out of money long before the next paycheck. It was a continual financial rollercoaster. Sound familiar?

Like most people, I had not received any kind of formal or informal training to prepare me for the awesome responsibility of managing my income to effectively support a growing family. I was on my own with no financial roadmap as I searched for any type of a money management method that would work for me. I was looking for a way to both pay my bills on time and to smooth out the amount of spending money available between paydays. I’m sure you can relate to my quest.

I tried budgets and found that keeping track of every penny spent was something I didn’t want to do. My budgets started off great, but they didn’t last long. I tried bill consolidation loans and, after doing several, realized that consolidation loans by themselves are not the answer. They served only to increase my debt instead of helping me to control my finances. keep in mind that this was all happening over 30 years ago; well before the advent of personal computers. There were no software options for personal financial management. I was on my own.

Over the years I gradually, without any premeditated idea of what I was doing, developed a system for paying my bills which also evened out the highs and lows between paychecks. These were the two features of a money management system that I wanted. This “system” was nothing more that a consistent way of looking at my finances twice a month. I was doing this all on scratch paper with no formal structure.

It’s impossible for me to pinpoint when my very simple approach to cash flow management evolved into something I could use consistently. all I can say with certainty is that while I was paying bills one month it dawned on me that what I was doing on scratch paper could somehow be organized into formal records.

After experimenting with forms design over a couple of months, I managed to create a system of forms that replaced my scratch paper. (Remember, this was in the mid-1970′s; several years before the advent of the personal computer.) With my new forms in place, my informal system had matured to the point that I was able to pay my bills when due without financial strain, and I had a consistent cash flow for day-to-day expenses. I was quite pleased with how my own personal money management “system” had turned out. It was a process that I, nor anyone else to my knowledge, had ever seen or used.

A Friend Gave It A Try

A friend of mine at the time, Fred Thornton (not his real name), became interested in my little system of forms. I had been telling Fred how pleased I was with the effectiveness of the process. My friend was also searching for a better financial scheme. he had an excellent income, plus a generous monthly dividend from a trust fund that his grandparents had set up. Despite his above average income, Fred’s financial condition was characterized by “more month than money.” he had large credit card and charge account balances to which he forfeited substantial interest every month. In addition, Fred was constantly concerned about his ability to pay his bills. he was in the same boat I had been in. at his request, I agreed to create a set of my forms for Fred to try.

After I copied the forms and instructed Fred on the methodology of the system, Fred became very dubious that my set of forms would be any help at all. After he initialized his forms to reflect his financial situation, it was painfully clear that Fred’s finances were a disaster. according to the forms, Fred was in very bad financial straits; bad enough that he doubted his ability to ever get his finances under control. In addition to doubting the usefulness of my forms, both Fred and his wife were afraid that using the system would put unwanted restraints on their lifestyle the same way budgets tend to do.

The Turnaround Was amazing

Despite their concerns, Fred and his wife decided to give my system of forms a try. They had nothing to lose. their finances were in such bad shape that they doubted my system could make things worse. the results they achieved so quickly amazed all of us.

After using my system of forms for less than three months, Fred’s finances had stabilized. all of his credit card and charge account balances were under control to the extent that he no longer paid interest on any of his credit cards or charge accounts. Furthermore, Fred and his wife were very pleased that their concerns about having constraints on their lifestyle proved groundless. They were actually able to begin pursuing many interests which, prior to using my system of forms, had been too expensive. as Christmas approached that year, the Thorntons were able to do virtually all of their gift buying without incurring any debt. In the eleven years they had been married, that was the first Christmas that they got through with virtually no additional debt.

The amazing turnaround in Fred’s finances was nothing short of incredible. Because of the original set of forms I had provided to Fred, his finances quickly went from “more month than money” to “more money than month.” After using my “system” for a few short months, Fred found that he was consistently faced with the pleasant problem of having excess income every month. His income had not changed, only the way he managed it.

The Word began To Spread

My and Fred’s success with the original set of forms was difficult to keep secret. It wasn’t long before I was receiving inquiries from both people I knew as well as strangers; some of whom were out of state. since I couldn’t make copies of the forms and personally instruct everyone on how to use them, I decided to write a how-to book. the resulting three-ring binder, titled Payday Management System, was self-published in 1975.

Without exception, everyone who purchased a copy of that first book had the same success in gaining control of their finances that Fred had experienced. I began receiving letters from very pleased customers. Sales were slow since all advertising was strictly word of mouth. But, it appeared that, given enough time, sales of the Payday Management System could have taken off. So why haven’t you heard about that first book in the last thirty or so years?

At the time I was still very much involved in my military career and had no time to be a book publisher. Shortly after publishing the Payday Management System, I was transferred to my next tour at sea. before heading for my ship I put the book aside. I went off to sea and forgot about it. I continued to use the money management techniques; I just didn’t have the time to share them with others.

Fast Forward To Today

It’s now more than thirty years since my personal money management system was formalized in a crude set of hand-drawn forms. since then, the personal computer has become very much a part of a growing number of peoples’ lives. I decided a few years ago that it was time to update the original book and to convert the manual forms into a personal computer program so that I could again begin sharing this powerful money management process. I was now a software developer with much experience and figured I could easily convert the Payday Management System manual workbook to a Windows program. Boy, was I wrong.

After several years and more false starts, I completed the first version of my personal finance program in the fall of 2006. Expressing the simple techniques that comprised the original Payday Management System proved to be a far greater challenge than I first thought. those techniques are powerful in their simplicity; and I soon discovered that preserving that simplicity in a technological venue was not easy. But, version 1.0 of the software is finally done. I’ve been using the program for several months. It makes managing our month-to-month finances very simple and easy.

George Gilbert writes software for personal computers. Titles include myOwn10-Key, myOwnPayday, Person On Call, Trend Importer and Double Text. find out more about these innovative, award winning programs at 2goodsoftware.com.

Personal Finances – How I Achieved More Money Than Month …

“Historic” is actually how CNBC describes the current mortgage interest rate situation, which is at 4.87 percent on a 30-year fixed loan.

That’s the lowest it’s been in 30 years.

Mark Zandi, chief economist at Moody’s, puts it into perspective:

“It’s the best time in our generation to buy. It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy or refinance.”

The report indicates that the debt crisis in Europe is responsible for the great rates. Nervous investors are “flocking” to the “security of US Treasurys.”

How long will these once-in-a-lifetime rates last? Unsurprisingly, not long … about one or two months.

In fact, Lawrence Yun, chief economist for the National Association of Realtors, predicts that interest rates will climb back up to 5.5 percent “by the end of June if not sooner.”

To start your home search today click here. Foreclosure.com has the best real estate deals in your area — save up to 50 percent or more!

Remember, too, that Foreclosure.com also offers a host of mortgage resources such as calculators right here.

Foreclosure.com Blog · best mortgage rates available today

Normal service resumed in the Sunday League Premier Division as Pack Horse returned to top spot.

Pack lead Ox-fford, who had the weekend off after an 8-1 drubbing of Prestbury Club, on goal difference. Six different players found the net but the catalyst was the return of Matt Towns who returned from his stint in the League Of Wales to lead the line.

On target for the Pack were Simon Gibbons (3), Nick Stone, Harry Wheetman, Simon Band, Sean Gill and Towns.

AC Bollan thumped an out of sorts Vale 6-0 to keep the pressure on Ox-fford. Again six different players – Tim Hammond, Fran Oliver, Andy Davies, Sam Dicken, James Wheeler and Tom Moores – found the net.

Albion Rovers’ revival continues as they overcame fellow strugglers Macc Boys Seniors 5-2. the Seniors play wonderful attacking football but can look vulnerable at the back.

Despite Eddie Roberts’ 12th of the season Albion scored five times to take the points and leapfrog over Macc Boys. Rovers’ scorers were Tom Druce, Gary Chapman (2), Dave Barratt and Liam Fisher.

In Division one leaders Hollins played second-placed Nags Head. A predictably tight affair ended 2-2, a fair result on the balance of play. Mark Gee and Neil Smith netted for Nags with Jon Browning and Gaz Burns earning Hollins a share of the spoils.

Queens Arms have been rising up the table and their 3-1 win at Poynton Legion put them a point behind Nags with two games in hand. Legion took the lead through Luke Williams but then trailed 2-1 after goals from Sam Davidson and Scott Wright.

Striker Simon Williams played in goal, but he was powerless as Stuart Ainsworth secured all three points from the penalty spot.

It finished all square as Spinners and Railway fought out a 1-1 draw . Dave Grindey gave Spinners the lead in the first half before Chris Coxen levelled with his 13th of the season.

Macc Boys Juniors recovered from gifting Sporting Kerridge an early own goal but Neil Woodward, James Wooten (2) and Duncan Hodges gave them a 4-1 win.

Chester Road Tavern held a long pitchside inquest after their 3-1 defeat to Poynton.

Jon Blackburn’s goal wasn’t enough as Poynton banged in three through Dave Berwick, Ric Cash and Greg Willis.

Tythy Juniors took all three points following an entetaining 3-2 victory over Chilli Banana.

Both sides had strikers signed from Premier Division Pack Horse so there was no shortage of fire power.

Mike Meszaros opened the scoring for the visiing Chilli side but Lee McIntyre scored twice, one a spectacular flying volley, the second from the spot with Nick Hadfield adding a third before Jono Campbell made it 3-2.

Horse edge ahead

Quote of the month. “We would worry less about what others think of us if we realized how seldom they do.” – Ethel Barrett

The month in brief. Wall Street had an eye on Washington for much of last month. Anticipation of earnings season gave way to concern over what might happen if proposed limits on bank risk went into effect, and what might happen if federal tax credits in the housing market went away. Stock and commodities markets fared poorly as some economic data led traders, economists and investors to wonder how much of the recession recovery was attributable to government measures. Still, consumer confidence was on the rise and the economy was clearly on the mend.

Domestic economic health. Some very good news arrived in January: according to the Commerce Department, the preliminary 4Q GDP reading was +5.7%, the best quarter in six years and 1.0% higher than the expectations of analysts. Consumer spending represented 2.0% of the gain. Additionally, the Conference Board’s survey of consumer confidence hit a two-year high last month.1 the University of Michigan consumer sentiment poll rose by 1.6 points to 74.4.2 the latest consumer spending data showed a 0.2% gain for December. January also brought the best news on factory output in five years – the Institute for Supply Management’s manufacturing index read 58.4 for the month. 3

Other news items bothered the Street. in late January, President Obama rolled out a proposal he referred to as “the Volcker rule”. Developed with input from former Federal Reserve chairman Paul Volcker and former SEC chair William Donaldson, the rule would prohibit banks and bank holding firms from getting involved in hedge funds or conducting proprietary trading operations.4 Intended as a corrective to the behavior of the 2000s, the proposed limits on bank size and bank risk sent stocks skidding, as investors saw reduced potential for bank profits. Tightening in China, debt problems in Greece and a downgrade of the U.K.’s banking system didn’t help the mood.

In terms of rates we all watch, things stayed pretty much the same: the benchmark interest rate remained between 0-0.25% after the latest Federal Open Market Committee meeting, and the Senate reconfirmed Ben Bernanke as Fed chair. we learned that the jobless rate stayed flat in December at 10.0%.5 the inflation rate (CPI) had inched north 0.1% for December, up 2.7% over the last 12 months with core CPI rising 1.8% in that stretch.6

A previously obscure Massachusetts state senator became a person of influence on Capitol Hill. the unexpected election of Sen. Scott Brown (R-MA) effectively derailed passage of the Obama administration’s seemingly assured healthcare reforms. White House press secretary Robert Gibbs claimed that the health care reform bill was still “inside the five-yard line.” there were signals that health insurance reform might be the new tack.7

Global economic health. Concerned about an overheated economy, China told its commercial banks to boost capital ratios; that led to the worst market day in Asia since early November, and it was the first in a series of cautions from the government.8 China’s GDP was +10.7% in 4Q 2009 with December showing amazing annualized gains in industrial output (+18.5%) and retail sales (+17.5%).9 the Bank of Japan forecast moderate improvement for that nation’s economy; Japan’s jobless rate fell to 5.1% in December, and its vehicle sales went north in January for the sixth consecutive month.10

In Europe, the government of Greece wrestled with a $75 billion budget deficit. Standard and Poor’s took the United Kingdom’s banking system off of its global list of “most stable and low-risk” banking systems.11Yet Eurozone consumer confidence increased for the tenth consecutive month in January, even as the latest figures showed unemployment had reached 10.0% for November.12,13

World financial markets. Indices in a few of the BRIC nations posted gains last month. Venezuela’s Caracas General pulled off a 7.7% increase, and Russia’s RTSI rose 3.3%; the Jakarta Composite in Indonesia gained 3.0%. (The world’s best performing index was the CASE 30 in Egypt, which rose 7.8% last month.) most world indices took monthly losses, as follows: Hang Seng, -8.0%; Shanghai Composite, -8.8%; Sensex, -6.3%; all Ordinaries, -5.9%; Nikkei 225, -3.3%; STOXX 600, -2.4%; DAX, -5.9%; CAC 40, -5.0%; FTSE 100, -4.1%. the MSCI World Index fell 3.67% in local currency terms; the MSCI Emerging Markets index lost 4.47% in January.14,15,16

Commodities markets. most commodities struggled on the NYMEX last month. Three posted January gains of 5% or better: coal, +8.31%; sugar, +9.80%; orange juice, +5.46%. Platinum prices went up 3.15% and palladium prices gained 0.93%. Gold lost 1.20%, silver 3.89% and copper 8.79%. Gold ended the month at $1,083.00 per ounce. Crude oil, which finished January at $72.89 per barrel, lost 8.15% for the month. Crops were hit hardest, with soybeans down 12.83%, wheat down 12.47%, corn down 13.99% and oats down 17.69%. the U.S. Dollar Index gained 2.07% last month.17

Housing & interest rates. what would happen with the housing market without federal subsidies in place? the latest new and existing home sales figures made analysts wonder. Purchases of existing homes fell by 16.7% while new home purchases dipped 7.6%; both figures reflected the assumption that government tax credits were expiring.17 Construction spending slipped 1.2% in December.18 On the bright side, National Association of Realtors tallies put existing home sales for 2009 approximately 5% above levels of 2008.19

What about mortgage rates? Did 30-year FRMs manage to average under 5% for another month? the answer is yes. On January 28, Freddie Mac tracked average interest rates on 30-year FRMs at 4.98%. Rates on 15-year FRMs were averaging 4.39%, rates on 5-year hybrid ARMs were averaging 4.25% and rates on 1-year ARMs averaged 4.29%.20

Major indexes. January brought some chills to Wall Street, with the proposed “Volcker rule” and concerns about financial pressures in China, England and Greece affecting the three marquee indices.

(Source: CNBC.com, ustreas.gov, 1/29/09)17,21
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. these returns do not include dividends.

February outlook. the Dow opened February with strong gains, as it did in January – it seemed those who had sold stocks toward the end of the month wanted to buy back in. Some feel a correction is coming after the fantastic gains of 2009; in late January, the S&P 500 broke it 80-day moving average for the first time since March.22 Bulls feel January represented a short-term blip on the radar screen in response to the headlines of the moment, and that investors will proceed cautiously but with confidence.

Let’s take a look at February’s significant economic releases. we have the January ISM service sector index (2/3), December factory orders (2/4), January’s unemployment report (2/5), December wholesale inventories (2/9), January retail sales and December business inventories (2/11), the University of Michigan’s February consumer sentiment index (2/12), January industrial production, housing starts and building permits (2/17), January PPI and the Conference Board’s leading indicators (2/18), January CPI (2/19), the Case-Shiller home price index for December and February consumer confidence as measured by the Conference Board (2/23), January new home sales (2/24), January durable goods orders (2/25) and January existing home sales (2/26). On March 1, we’ll learn about January consumer spending.

Riddle of the month. Some months have 30 days, others 31. How many have 28?

Contact my office or see next month’s Update for the answer.

Last month’s riddle. if an electric train is going south and the wind is blowing north, what direction is the smoke going?

Last month’s riddle answer: Nowhere – an electric train doesn’t emit smoke.

Citations.
1 washingtonpost.com/wp-dyn/content/article/2010/01/29/AR2010012901694.html?hpid=moreheadlines [1/29/10]
2 money.cnn.com/2010/01/29/markets/markets_newyork/ [1/29/10]
3 online.wsj.com/article/SB10001424052748704107204575038941133108482.html?mod=WSJ_Commercial_sections_HomeAndGarden [2/1/10]
4 curiouscapitalist.blogs.time.com/2010/01/21/a-question-about-the-volcker-steagall-act/?xid=rss-topstories [1/21/10]
5 online.wsj.com/article/SB126295679510421517.html?mod=rss_Today%27s_Most_Popular [1/8/10]
6 money.cnn.com/2010/01/15/news/economy/consumer_prices_december/ [1/15/10]
7 cnn.com/2010/POLITICS/01/31/health.care/ [12/4/09]
8 cfdtrading.com/category/asian-markets/page/2/ [1/13/10]
9cfdtrading.com/category/asian-markets/ [1/26/10]
10 cfdtrading.com/category/asian-markets/ [2/1/10]
11 online.wsj.com/article/BT-CO-20100128-716068.html?mod=rss_Global_Stocks [1/28/10]
12 cfdtrading.com/category/european-markets/ [1/28/10]
13 marketwatch.com/story/euro-zone-unemployment-at-11-year-high-2010-01-08?reflink=MW_news_stmp [1/8/10]
14 online.wsj.com/mdc/public/page/2_3022-intlstkidx.html?mod=mdc_intl_pglnk [1/29/10]
15 blogs.wsj.com/marketbeat/2010/01/29/data-points-asia-europe-193/ [1/29/10]
16 mscibarra.com/products/indices/stdindex/performance.html [1/29/10]
17 cnbc.com/id/35150197 [1/29/10]
18 seekingalpha.com/article/184822-an-expected-drop-for-u-s-home-sales [1/27/10]
19 nytimes.com/2010/01/30/business/economy/30charts.html [1/29/10]
20 freddiemac.com/pmms/ [2/1/10]
21 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [1/29/10]
22 cnbc.com/id/35184183 [2/1/10]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. the Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. the NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation system. the Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. it is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the new York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. the new York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. the Caracas Stock Index consists of 15 companies, and its regulatory body is the National Securities Commission of Venezuela. the RTS Index (RTSI) is an index of 50 Russian stocks that trade on the RTS Stock Exchange in Moscow. the Jakarta Stock Price Index is a modified capitalization-weighted index of all stocks listed on the regular board of the Indonesia Stock Exchange. the CASE 30 (Cairo & Alexandria Stock Exchange: EGX30) is the main stock exchange of Egypt. the Hang Seng Index is a free-float capitalization-weighted index of selection of companies from the Stock Exchange of Hong Kong. the Shanghai Stock Exchange Composite Index is a capitalization-weighted index that tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. the BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks that started January 1, 1986. the S&P/ASX all Ordinaries Index represents the 500 largest companies in the Australian equities market. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). the Nikkei average is the most watched index of Asian stocks. the Dow Jones STOXX (Price) Index is a broad based capitalization-weighted index of European stocks. the DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. the CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. the FTSE 100 Index is a share index of the 100 most highly capitalized companies listed on the London Stock Exchange. the MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. the MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. neither the named Representative nor Broker/Dealer gives tax or legal advice. all information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. all economic and performance data is historical and not indicative of future results. the market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. the publisher is not engaged in rendering legal, accounting or other professional services. if other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

February 2010 Growth Report | MarkLundonMoney.com

7 tips to find your best deal on a new credit card by Bill Hardekopf, CEO of LowCards.com

HomeMoneyCreditSelectingApplying for a New Credit Card

December and January are traditionally the busiest months for new credit card applications. Shoppers want lower rates for their holiday purchases. Budgeters want lower rates to help keep their financial resolutions. this year, applicants may be disappointed in the credit card offers they receive from issuers.

Shopping and applying for a new credit card is not as easy as it used to be. Consumers should now expect higher rates and lower credit limits. Approval is no longer a sure thing. Issuers are struggling to keep profitable, and they are trying to generate new revenue from their cardholders who are finding it difficult to make their card payments.

Still, getting a card with a lower rate can save money on interest and can be worth the effort. Here are some tips for shopping for a new credit card:

1. Start with your credit score.

Lenders make their judgment about your credit worthiness based on your credit score. a FICO score of 700 or more is considered very good; over 760 will usually qualify you for the best rates (up from 720 several years ago). a consumer with a score less than 640 will receive high interest rates and limited credit options. Issuers will also use your credit score to determine the features of your card, such as the credit limit and balance transfer terms. if you are surprised by your credit score, check it for errors. Correcting mistakes is the fastest way to raise a credit score.

2. Honestly assess how you will pay off the credit card.

You need to take a hard look at yourself to determine what kind of credit card customer you are. will you pay off the entire balance each month on time or will you carry a balance? this will determine the type of card you need.

If you pay off your balance each month, consider a rewards card with no annual fee. Cash back reward cards are usually the best because you can use cash to purchase anything. Know that issuers have cut back on reward offers. 1% is now the standard amount for rewards of points or cash. Also, pay attention to the reward tiers. Even though the issuer advertises a 1% cash rebate, it may take a certain level of spending to reach the 1% level.

If you carry a balance most months, apply for a card with the lowest possible rate. The less you pay for interest, the more you pay toward your balance and the faster you can pay off that balance. Do not pay a higher rate just to get rewards.

3. Transfer your balance to a card with a lower rate.

Transferring balances between low rate cards was once an easy and profitable game for many cardholders. However, this lost money for issuers and the offers for 0% interest on your balance for twelve months have almost dried up. this year, balance transfer fees jumped from 3% to 4% and, in some cases, 5%.

This is discouraging news for consumers who are placing hope in balance transfers. However, if your APR has been increased significantly, your issuer may be forcing you to try to find another card with a lower rate. before you begin the process of transferring your balance to another card, contact your issuer and ask them to lower your current rate. this doesn’t happen as often as it used to, but it doesn’t hurt to ask.

4. Pick one card and apply for it.

Compare three or four cards. Study the terms and conditions of these cards. then select the best one and submit an application. Limit the number of applications that you submit because each application is recorded as a credit inquiry on your credit report. Multiple applications are a red flag that can lower your credit score because people actively seeking credit are typically a higher risk to lenders than people who are not seeking credit.

5. Avoid store cards.

Do not apply for a store card just because the store gives you an immediate discount on your purchase. The rates are usually much higher than an average card. if you don’t pay off the balance in full the first month, you could pay much more in interest than the money you saved.

6. Pay attention to your rate.

Most rates are now variable and they will increase in the future as the Federal Reserve raises the prime rate.

7. Only apply for credit if you need it.

Do you really need a new card, or can you work with the cards that you have? Most consumers carry too many credit cards, which leads to further temptations to spend.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories, such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card. The LowCards.com Complete Credit Card Index is the most objective and comprehensive resource on the Internet, which allows consumers to compare rates for all 1060 credit cards offered in this country.

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New Credit Card, Credit Card Applications, New Credit Card …

Debt settlement firm Freedom Debt Relief resolves California lawsuit successfully

Wednesday, Jan 6, 2010 By Mark Cappel

Freedom Debt Relief settled an 18-month-old civil lawsuit filed by the California Department of Corporations and the San Mateo, CA District Attorney’s Office with no findings of wrongdoing and without any admission of liability.

Freedom Debt Relief provides consumer debt settlement services. since its 2002 founding, Freedom Debt Relief has settled more than $500 million in consumer debt, achieving an average savings rate of nearly 60 percent on total client debtbalances. It has served more than 70,000 clients since 2002, and employs 580 employees. as an alternative to credit counseling, debt consolidation and bankruptcy, Freedom Debt Relief’s debt settlement programs help qualified clients resolve their debts, typically in two to four years.

The basis of the complaint was that Freedom Debt Relief operated without a California “prorater” license. However, the consent judgment acknowledges that the Freedom Debt Relief business model is compliant with California law and that the company does not need a prorater license. this is the first known case where a debt settlement company has been acknowledged to be compliant with current California law.

“We recognize this as validation that our debt settlement business model works in the consumer’s best interest,”

Debt settlement firm Freedom Debt Relief resolves California lawsuit successfully

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there has never been a better time to be invested in residential real estate…..NEVER

While the blood runs in the streets, now is the time to get top dollar guaranteed returns for your 401K. But you don’t own the property, you own the mortgage. And if you are not as stupid as the commercial banks that got caught with their pants down last year, you can have a very secure investment.

I buy and sell single family homes in the Atlanta area and I have gotten pretty good at buying houses at DEEP DISCOUNTS. This is especially true in today’s market when banks are eager to sell houses at 40-50% of present market value.

Sometimes I come across a deal where I just don’t have time to wait around for the long drawn out process of dealing with a bank in order to fund the buy. so what I do is find someone who has some money to invest who isn’t really happy with 1.5% on a CD or Money Market and instead wants a GREAT return on a SAFE and SECURE investment.

I use their IRA money to purchase the home and fund any repairs required and in return, they get a first mortgage a Security Deed on the home, title insurance and a GREAT interest rate on their funds. In most cases the mortgage will be only 50% of the value of the home.

If your investment of $50,000 is secured by a home worth $100,000 and the housing market takes a dive of 20%, your security is still worth $80,000. the investor who owns that home (me) will have lost 40% of his equity, but the lender (you) hasn’t lost a dime and in fact will still earn the guaranteed GREAT interest stipulated in the Mortgage.

When I sell the house, your Pension plan is paid back all the money borrowed along with the guaranteed interest. we never touch your money since your plan Trustee wires the funds to the Closing Attorney, who in turn wires the repayment and interest cash directly to your plan Trustee.

Funds in your Pension plan, IRA or 401K can earn guaranteed HIGH interest, income tax deferred, but to make it even better, we suggest you convert your conventional plan into a ROTH 401K or IRA and your earnings are TAX FREE. we can show you HOW. It’s fast, easy and SAFE.

Now, I won’t pretend to ignore the elephant in the room…….the crisis caused by the recent Mortgage Upheaval. Remember what I said about the loan to value ratio being about 2:1 or 50% LTV on my program. That is what makes this such a SECURE plan. In years past, bank stock was considered the “gold standard” in investments. Banks used to require 20-30% down payment and proof of employment and proof of your ability to pay back the loan. Home mortgage defaults were few and far between. once those standards were relaxed, all bets were off. Many folks bought homes in the last 5 years with no money down, no proof of income, no proof of credit history and no employment record. (To make matters worse, because prices were increasing at such a rate, many banks offered to loan 10 – 20% MORE than the home was worth.) it was cheaper to buy than it was to rent. If the home owner had nothing invested in the home, ie, “no skin in the game”, when times got a little tough, there was no incentive to stick it out. Many, many folks just walked away from their homes and allowed them to go into foreclosure. Sure, they took a credit hit for a few years, but many walked away improving their net worth by tens of thousands of dollars. Money they didn’t have to repay to the bank on a home that was suddenly worth much less than they had paid. once that started, prices began to fall rather than continue the perpetual appreciation of the last hundred years. thus was born the “sub-prime meltdown”. When your loan is guaranteed by a home worth two times as much as the loan, your SECURITY is GUARANTEED. This makes the loan MUCH safer than equities or bonds.

How much cash is required?? we have done Private Lender mortgages for as low as $5000 up to $200,000. larger loans generally earn higher interest rates. Loans are usually fixed rate for 3-5 years but other terms are possible. you are the bank….we will work to make you happy.

How Does it work?? If you are interested, let us know by completing the information card on the website. tell us how much you would like to invest and when your funds will be aailable. we see deals almost every day and as soon as one comes along that meets your parameters, we give you the particulars on the house. we will give you the costs estimates, the comparable sales figures, pictures and details on the neighborhood. If you like the looks of the deal we put a contract on the house and close as soon as your funds are available. because we can generally close quickly, we are able to get better deals than most.

Can I get out early?If you think you might need the money for something else before the end of the note, you shouldn’t enter into the deal. That said, there is NO penalty if you DO want out early. we just locate someone else to take over your position, and substitute their documents for yours and transfer their funds to you. you earn interest based on the length of time your funds are invested. it could take 4-6 weeks to do the substitution, but you DO NOT pay a penalty nor do you have to wait for us to sell the house.

How do I get my interest? Most Pension plan money earns guaranteed interest which is accrued until the end of the note and paid with the principal. however, we can make monthly or quarterly interest payments if you prefer. Payments are of course interest only as there is no amortization of the mortgage. Interest payments are paid directly to the plan Trustee.

What about my Life Insurance cash value??Some investors borrow their cash value from their whole life insurance policy, which usually earns at about the rate of a CD and loan that cash into our program to earn at top dollar. the spread can be pretty substantial.

I am sure there are many questions still unanswered. Call at your convenience and we can discuss any additional details.

Full time Real Estate Investor and Professional Home Buyer, we specialize in buying houses in Lilburn GA, Snellville, Lawrenceville and Loganville, GA. we frequently use Pension plan money of other investors to fund our purchases.

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