Cash-strapped consumers and businesses are coming up with creative ways to fight higher costs. One practice gaining popularity: the ancient custom of bartering.

That's right, before there was money, there was bartering. And it's back, baby.

The rise of bartering for goods and services means consumers are now trading for such things as wedding services, tombstones, breast augmentation and Botox treatments. The cash-free transactions are often facilitated through the Internet and barter exchanges, which are third-party record keepers that coordinate trades between business owners.

In the past two years, membership in trade-exchange businesses has climbed 10% to 15% annually compared with 5% to 8% annual growth prior to that, says Mr. McDowell. He estimates his members do $3.8 billion to $4.3 billion in trades a year.

Obviously there are potential pitfalls to the process, but you are generally giving up something that costs you very little, such as expertise, for something that would cost a great deal more if you were to buy it outright. So with prudence, this seems like a good and viable option for saving money.

But how widespread and practical is it really? Has anyone reading this used bartering to save money and/or afford something they might not be able to purchase?

Web Barterers' Tricks of the Trade [Wall Street Journal]
— FREE MONEY FINANCE

Dow enters bear market as stocks slide [Reuters]

Use this after normal customer service fails. Be nice, ready to state your case in 1-2 sentences, and read this post on dealing with executive customer service first.

(Photo: Whatsername)

“Timing is everything in business,” says Lorenzo, author of Career Intensity: Business Strategy for Workplace Warriors and Entrepreneurs. If the company and industry are doing poorly, it may not be the best time to ask for more money. But if business is booming, especially if you’ve played a key role in the company’s success, make your move. Special opportunities can provide a natural springboard for a raise: after you’ve received an award, saved significant money for the firm, or agreed to take on additional responsibility. Finally, consider the corporate calendar; you may get better results if you ask while the next year’s budget is being developed.

One major point to make — the key to asking for a raise is noted in the first sentence: you must deserve it. Otherwise, all the asking/begging/pleading in the world will likely fall on deaf ears. Check the blog post for more steps to asking for a raise and details on each one.

How to Ask for a Raise [Free Money Finance]

(Photo: Getty)

1. Buying really far in advance usually doesn't matter
The lowest prices get released in the period 2-8 weeks beforehand. Buying earlier than eight weeks in advance won't usually won't get you any deals, and you might even miss out.

2. Buying really far in advance DOES matter for peak travel dates
Spring Break flights leaving on Friday, Sunday returns during summer months, and, of course, anything around Thanksgiving and Christmas.

3. Snatch up price drops
Fare cuts are usually bye bye in 2 days.

4. Spurn high fares
Hiked prices are often cut when airlines have to make up for all the lost business from prices being too high.

5. Day of flight is important
The cheapest days to fly are Tuesday, Wednesday, and Saturday. Don't believe me? Read this.

6. Day of ticket purchase matters
Price drops usually get rolled out earlier in the week

7. Leave earlier, stay longer
You can save during holiday rush times if you depart a day earlier and come back a day later than most people would.

What are your favorite tricks for saving on airfare? Share your thoughts in the comments below.

Tracking Air Fares: Elaborate Algorithms Predict Ticket Prices [WIRED]

(Photo: iwantamonkey)

IRS Increases Mileage Rates through Dec. 31, 2008 [Press Release]

(Photo: beebo wallace)

Both NDphoxylady and I know that that doesn't count. The credit card company needs to send you an additional kind of disclosure notice. She has paperless billing, which may explain why she never got it. In any event, that still doesn't excuse their non-notification. Three times she called Chase. She asked for supervisors each time and was directed to voicemail, which she never got a call back from. We told NDphoxylady it was time to escalate to executive customer service and pointed her to the Chase numbers on our site. Within a few minutes of calling, Chase waived the fee. NDphoxylady was happy about that, but still pissed that it happened in the first place.

She wrote, "Now, we pay everything on the 12th, and I do not have the time to check every month that my due date is going to change...I feel like closing my account with them.

I mean to me it's the principle that matters, they could have charged me three bucks and I would still be pissed off. It's their manipulative behavior, and I doubt many people called to get these fees removed. They probably thought it was their fault and never reported it to chase

Is anyone trying to control these companies? I mean can't government regulate something?"

We told her if that she really feels strongly about it, to write a letter to her elected representatives. This excellent post shows you the most effective way to write to Congress.

"Who will protect the customers," NDphoxylady asked. " It's like we have to stick up for ourselves and for other people."

It's always a good idea to scrutinize your monthly bills. You never know when they're going to try to sneak in a new fee.

(Photo: Getty)

• CreditKarma.com: Gives you your TransUnion score. Advertising-supported.
• E-Loan: Experian score. Scroll down to "One-Time Credit Snapshots" and "Free Credit Score (Credit Score Only)"
• Prosper: Experian score. Information on how to do it here.
• LendingClub: Gives you a letter grade score, which you can use this chart to translate to a numerical score.
• Washington Mutual Credit Cards: Get your Transunion score when you log in.

• Another way these are useful is that if you check in periodically and keep track of the results, you can see how your score fluctuates and try to correlate its delta with any credit-related actions you took during that time. But, if you're shopping for a loan or a mortgage, you will definitely want to pony up the cash and get your real FICO score.

  [via MyMoneyBlog]

1. Daily Latte
A fancy coffee shop cup of coffee could cost 100 times a home brewed cup.
Brew your own and you could save $25 a week, or $1,300 a year.

2. Cable TV
If you can live without premium channels you could save about $25-$30 a month, or $300-$360 a year. If you are hard-core you can drop cable altogether and save $55-$65 a month, or $660-$780 a year.

3. Manicure/Pedicure
We don't have much experience here but apparently if you skip a manicure and a pedicure once a month, you would save $50-$110 a month or $600-$1,200 a year.

4. Botox
Treatments usually run $300-$1,200 per visit. Try going "au natural" and save $1,200-$4,800 a year.

5. Bottled Water
If you feel ok about drinking tap water you can save $25-$40 a month, the average monthly delivery fee based on online averages.

6. Second Car
According to the article, this is the highest-ticket "new necessity" today. Getting rid of an old gas guzzler could save you thousands on insurance, registration, maintenance and of course, gas.

7. Cell Phone
Does EVERY child in the family need a cellphone? You could save $480 to $720 per year for every phone you eliminate.

8. Lawn Service
If you have the time, mow your own lawn. You could spend $65-$90 on average for weekly mowing, hedge cutting, and leaf blowing which equals $260-$360 a month.

9. Clothes
Unless you have an urgent need to keep up with the latest fashions, famous frugal-master Jeff Yeager has an idea that will probably seem radical to most, "I think most Americans could easily go for one year without buying any new clothes," he says. The savings here could be monumental depending on your clothes-shopping habits.

10. Private School
Since you're already paying for public school, why not use it? You could save $8,000-$35,000 per year according to the Boarding School Review website.

11. Childhood Parties
Nobody's suggesting you take away a child's day of celebration but you don't always have to overdo it. Do you really need the inflatable moon-walk, magician, clown, and pony-rides every year?

12. Pet Grooming
Spend $25 on a set of clippers and learn how to groom your pet from a book or online. Professional grooming could cost $30-$90 depending on the size and breed of your pet.

Most people become complacent inside their comfort zone and are reluctant to go without those things to which they are accustomed, it's only natural. But try taking a few steps back and look at your necessities objectively, and you may discover that some of those things aren't necessary after all.

12 new 'necessities' that drain your cash [Bankrate.com]
(Photo: Getty)

Patience Pays Off [Kiplinger] "Whatever your style of investing, the lesson of the millenium is clear: It pays to keep investing through market slumps."

A Real-Life Example of How to Save $1,300 in Less than Two Hours by Shopping Around for Car Insurance [Free Money Finance] "I just recently got married so changing insurance was on the endless list of things to do, so I explored my intuitive feeling, of being screwed, and here is what happened."

18 ways to beat inflation [CNN Money] "Cut out some waste and take advantage of a few overlooked deals, and you can rein in your budget without feeling like a penny-pincher."

How We Organize Our Coupons and Execute Our Coupon Strategy [The Simple Dollar] "Here's how we maximize our coupon value, from top to bottom."

— FREE MONEY FINANCE
(Photo: Artnchicken)

Using simple and attractive slider bars, you input your current credit card balance and credit risk. BillShrink then you shows what cards on the market will save you the most money. You can narrow the results by saying which bank you want a card with, what kinds of rewards programs you might be interested in, what goods or services you would most use the card for, and what extra card benefits you're interested in receiving. There's even an option to say about how many times a year you might miss a payment.

Ok, that sounds pretty obvious for a site like this, but here's the real game-changer: the terms and conditions for each card are broken out one by one. In one section, BillShrink translates the entire credit card contract from lawyers-speak into two paragraphs, in plain English.

Most cards have introductory offers, like 0% balance transfers or a higher level of rewards. So a series of bar graphs by each card shows you how much money you save changes over the next three years.If you decide that you want to switch your credit card to one of the ones show, you just click a button next to the card. The site will make money by sending credit card companies these referrals, and remain free for consumers to use.

After you create your credit card profile, BillShrink sends you an email if any of the terms and conditions of your card change (they will). If your card becomes no longer the best value for you, BillShrink suggests what card out on the market is better. The site will also tell you when you're coming towards the end of any of your introductory offer periods, so you know if you'll want to change your usage patterns or switch to another card.

I asked Pham whether when they launched the wireless comparison component, if there was any negative pushback from the providers. I could envision the carriers getting upset about not being able to capitalize on customer confusion as much.

The two wireless companies BillShrink spoke with, Pham said, were excited about the service. Sprint was one of the companies. See, the service essentially filters, educates, and primes the customer for service. For the cellphone or credit card company, it reduces the costs of servicing customers who sign up because a bauble or freebie was dangled in front of them, but don't arrive informed about the particulars of the plan. Those customers end up frustrated and increase churn. But deliver a highly informed and ready customer, and you've got a win-win-win situation.

When we first wrote about BillShrink, readers said they found the service's coverage maps to be inaccurate. Those coverage maps are drawn from the maps on the carrier's websites, extracted down to the pixel, and then overlaid onto GoogleMaps. The inaccuracies are because the cellphone companies purposely don't provide accurate and granular coverage data. The company is looking into buying 3rd party data to beef up their maps, but I wondered whether there was chance of a similar slippage between BillShrink and reality with credit cards. This doesn't seem very likely, as carriers can fudge a coverage map, but credit card companies can't fudge credit card offer's terms without opening themselves up to serious legal repercussions.

BillShrink's credit card comparison service is scheduled to launch at the end of July will 100 cards in its database. Their goal is to get that up to 200, and then 400 within a year's time.

Pham sees it as a "thumb in the eye" to the credit card industry. “The information is out there, consumers are going to get to it eventually," he said.

Next industry on the hitlist? Auto insurance, with cable perhaps not too far behind.

(Photo: Getty)

Consumer Reports offers a lot of valuable advice in their recent piece, Spend Less on Everything. Some suggestions: Use shopping bots and online coupon sites to find the best deals, consider using VoIP, and check Consumer Reports's website for advice on insurance, electronics, and cars before purchasing them.

Some broader, common sense tips come from Survive a Recession: making sure you don't get fired, having or building an emergency fund, trying to eliminate debt, living frugally, and pursuing additional means of income.

The Simple Dollar lists Forty Ways to Reduce Your Monthly Spending, including insulating your hot water heater, reviewing and reducing your subscriptions, and starting a garden.

Although we wrote about this in 2006, it's just as valuable today: Free Money Finance gathers 301 of its money-saving tips, including guidance on choosing car insurance, cutting your own hair, and saving money on babysitting, into one cornucopia of frugality here.

For even more useful advice, check out Consumer Reports's comprehensive recession guide: Smart Moves for Tight Times

Lastly, we would advise against just throwing away bones with plenty of meat still on them. Instead, take them home, throw them in a pot, add some broth, a potato—baby, you've got a stew going!

73% - Crude oil
11% - Federal and state taxes
10% - Refining costs and profits
6% - Distribution and marketing

He's also got a cool graph showing how this ratio has changed from 2001-2008.

What Goes Into the Price of Gas? [FiveCentNickel]

(Photo: amyadoyzie)

Sometimes creating self-imposed barriers can be just what we need to curb bad habits. The same person inside us who has the willpower to put the credit card in the freezer is different from the person inside us who doesn't have the willpower to resist picking up the plastic and hitting the shops.

(Photo: Getty)

As provided Rule 5.6.3, Additional Cardholder Identification, of the MasterCard Rules manual, a MasterCard merchant must not refuse to complete a transaction solely because a customer who has presented a valid MasterCard card refuses to provide additional identification information, such as a personal ID, except as MasterCard specifically permits or requires.

A merchant may require additional identification if the information needed to complete the transaction, such as for shipping purposes. For transactions at unattended terminals such as card-activated gas pumps or transactions conducted on the Internet, by phone, or by mail, a merchant may request address information in order to use the MasterCard Address Verification System (AVS). By using AVS, the merchant can confirm that the address information provided matches the information that the card issuer has on file. Additionally, if the MasterCard card is unsigned, a merchant must request personal identification (but not record it) and require the cardholder to sign the card before completing the transaction.

If a cardholder encounters a MasterCard merchant that refuses to honor a MasterCard card without additional identification information, the cardholder may complete the Merchant Violation form found in the FAQs/Contact Us section of www.mastercard.com. The MasterCard Rules manual is also available at www.mastercard.com(click on “MasterCard Worldwide Rules”).

Regards,

Daniel F. Balistierri
MasterCard WorldWide

(Photo: Sam Wilkinson)

The sign reads, "It's time for you to do your part to stimulate the economy. And there's no better way to kick the economy up a notch than with a really great pair of pumps. Or a new flat screen TV. Or a fabulous bag. Or whatever you've been dying to get your hands on! So don't delay. CELEBRATE THE STIMULUS. TREAT YOURSELF TO SOMETHING SPECIAL TODAY!"

Mark says, "I enjoy how excessive consumerism is framed in patriotic terms."

(Brag) New York to Toronto Bus Ticket for $2! [Ready to shop with Nico?]

1. Use what you do have creatively
You have no shoes. Yet, you have a suit jacket, a box cutter, and the lining in the suit jacket. Combine them and you have serviceable foot coverings. Similarly, a metal pipe fitted with a length of chain makes an excellent truncheon.

2. Search through the discards
Even if that can in the corner looks empty, tap it with your foot. There might be some useable gas in it!

3. Don't quit
Just when you're on the edge of total failure is when you might come across the storehouse of apples and fresh water.

4. When you come across a windfall, use it wisely
Fill back up on what you need, but don't wallow in it and let it delay you from your journey.

5. Hold on to your morals
Just because you're hungry doesn't mean it's right to eat the flesh of other humans.

In what unlikely sources have you found inspiration for more frugal living?

15 fab — and cheap — gifts for Dad [Bankrate] "Here are 15 tiny-priced — and even free — gifts that will tell Pops he's tops."

How to Buy a Foreclosure [Kiplinger] "The price may be right, but be prepared for the hassles."

Best Places to Seek Student Loans [Smart Money] "Here's where students can turn for financing help."

How to Make Your Open House a Success [The Street] "Here are some tips that contribute to a successful open house."

— FREE MONEY FINANCE
(Photo: nsub1)

Envelope System Video Tutorial (Step By Step Guide To Using The Envelope System To Manage Your Cash) [No Credit Needed]

RELATED: Dave Ramsey's Envelope System [Dave Ramsey]

Currency: The Sinking Dollar [GOOD]

* Hybrids hold their value better than non-hybrid cars.
* Some lenders — typically credit unions — offer discounted loan rates for hybrids.
* Some insurance companies — including Geico, the Travelers, and Farmers — offer discounted premiums.
* The federal government is also offering tax credits of up to $3,400 for hybrids — but only for the first 60,000 vehicles, which means that Toyota and Honda models are no longer eligible. Some employers offer incentives for hybrid vehicles as well.
* And, of course, hybrids cost much less to fuel up.

In the end, the analysis shows a Honda Accord being 45% more costly and a Honda Civic 16% more costly than a Toyota Prius.
Of course the calculations are highly sensitive to assumptions, but to most reasonable observers, it appears that conventional wisdom has taken another hit.

Rethinking the cost of hybrid cars [Yahoo Green]

— FREE MONEY FINANCE

(Photo: geognerd)

Comcast Treats M-Card as Two CableCARDs, Bills Accordingly [Christopher Price]

24 Hours, 24 Ways We Save Money [The Simple Dollar] "Around the clock, a little here and a little there, the savings add up and, before you know it, your debts are shrinking and your life seems far less complicated than it did before."

Just a few more years [MarketWatch] "Working longer is one solution to the retirement income challenge. But that doesn't mean working forever — just an extra three or four years or so, according to the authors of a new book on the subject."

Managing your folks' money: 5 steps [CNN Money] "Even if you think you're well prepared to take over an aging parent's finances you'd better read this guide."

Attention Home Buyers: Lock in Your Rate [Wall Street Journal] "Rates have suddenly spiked in the past 10 days and there is a serious danger that this could get a lot worse."

— FREE MONEY FINANCE

(Photo: jacksbrokenego)

* A sabbatical is a one-time event. Mini-retirements are meant to recur throughout a lifetime.
* A vacation is short, and often involves a tourist lifestyle with little immersion in a new way of life. A mini-retirement is long (one to six months), and allows one to fully participate in his new environment.

The first question that pops up in most people's minds when considering such an issue is "how would I be able to afford it?" Ferriss actually claims that taking mini-retirements improves your finances:

"I think one assumption that [you're making] is that you spend and not save money on a mini-retirement. Let me offer a personal example. The personal stories in the book are mostly from experiences I had between 2004 and early 2006, traveling around the world for about 18 months. During the first twelve month period of time, I actually saved $32,000 when compared to sitting on my couch watching The Simpsons in my apartment in the Bay Area.

So if I saved $32,000 by taking a mini-retirement to Panama or to Argentina or to Thailand, and I do that once a year, that's an additional $32,000 that I can invest into a 401(k) or a Roth IRA or a profit-sharing plan...You end up at break-even, but had a mini-retirement to Thailand and you have an additional $32,000."

Lots to consider. Is the definition of retirement changing? If so, is it moving towards what Ferriss suggests or the (more likely) delay of traditional retirement due to rising healthcare costs? And what about the concept of taking more time off during your work years while you're young and can enjoy it? Sounds like a good idea, but can doing so be a break-even proposition financially or can you (almost unbelievably) actually earn/save more while taking mini-retirements? What's your take on the issues?

How to Take a Mini-Retirement: Tips and Tricks from Timothy Ferriss [Get Rich Slowly]

— FREE MONEY FINANCE

(Photo: saramarie)

36%-48%
Ideally, your total monthly debt payments shouldn't exceed 36 percent of your gross monthly income. But, Jones says, many people go above 48 percent, which should be avoided if possible.

In a perfect world debt payments wouldn't exceed 0% of our monthly incomes. Since our world is far from perfect, check out the rest of the rules here.

Your debt, 8 benchmarks for borrowing [Consumer Reports]
(Photo: Getty)

Lila got her Washington Mutual debit card pickpocketed while traveling in India. Naturally, her account was drained. She filed a fraud report with Washington Mutual and a got a temporary credit issued on the account while the case was investigated. Less than 3 days later, the credit was reversed without warning. It's not WaMu's policy to reverse provisional credits in these matters before 30 days have passed to investigate, and not without warning. None of the various reps and fraud personal could explain why this happened, nor could they give her her money back, nor could they connect her with anyone who would or could do anything. Supervisors are mysteriously never around. It's a good thing she already had some Rupees in hand when the theft occured, or Lila could have been stranded in the Himalayas while WaMu reps were busy playing Snood. Her complaint letter, and our advice on how to be more effective, inside...

Thursday May 29, 2008

To Washington Mutual Management and Whom It May Concern,

I am not typically the kind of person who writes emails to large companies where the people on the receiving end are probably just overworked, and bored individuals in suits who could careless about me and my concerns. In fact I assume the majority of angry letter writers out there are well over their 60’s, but I am still under the age of 25. Still I am compelled to write in the hopes that someone in one of the offices out there will take a second to look at the appalling customer service that patrons such as my self are receiving on our end of the WAMU customer service phone lines.

Let me please explain my situation. Recently I have been in frequent contact with Washington Mutual due to the theft of my debit card. I spent the last about 6 months in India on a study abroad program. Around April in the city of Hyderabad, while on my way to another more remote part of the country, I was pickpocket and my debit card was stolen. I unfortunately did not fully realize that the card had been stolen until I was already in the far north area of India. Needless to say by the time I was able to contact my mother in the United States, through email, and her able to act on the situation, the perpetrator had already drained my account. Had I not already of had some money in Indian Rupees would I have been practically stranded in the Indian Himalayas. As soon as we could my mother and I started the claims process with Washington Mutual. I was issued an amount of provisional credit, contingent on the fact that I would have to sign an affidavit back in the United States.

Once returned to the United States I did sign and mail the affidavit. I was under the expressed impression that the provisional credit would last for at least 30 days, while the case was being examined. Unbeknownst to me the provisional credit was reversed less than 72 hours later. I received no email, letter or phone call to inform me of this situation so I continued to use my debit card, believing the provisional credit to be true and valid.

On May 24th I decided to sign up for Wamu online banking, previously I had just tried to keep a written record of my accounts. It was then, through the online banking that I realized my account was in the negative, mostly due to 264 us dollars worth of overdrawn fee’s.Then I saw that the provisional credit had been reversed on May 12th, after only being issued on May 9th.

I decided to call the customer service to investigate the situation more clearly. The women on the form told me that the customer service could not help me, that I had to call the claims department and that they were not open on memorial day weekend. She offered little consolation and absolutely no explanation. I called again on Tuesday, and after a 39 minute wait received the claims department. They gave me the run around and told me to call back on Weds. So I called back again on Weds. and had another nearly 30 minuted wait to reach the claims department.

This time I reached someone named Douglas who was very friendly and reassured me the matter was being investigated, but he could not explain why the provisional credit had been reversed. He admitted it was not their policy to reverse credit before the 30 day investigation policy, and not without communication to the account holder. I asked him if anything could be done about the eight $33 overdraft fee’s that were a direct result of the provisional credit being reversed without my knowledge. He told me he would notate my account and transfer me back to customer service to see if they could help me. I had previously deposited $450 into my account to have it directly eaten up by the negative balance. Being transferred back to customer service was a horrible affair. No one would help me, and each person said that it was only up to the claims department to reverse the charges now. The phone call ended with me literally in tears when the manager of customer service hung up me.

I called back again today, Thursday May 29th, hoping to reach Douglas again. Although for some reason he was unavailable, I did reach another associate in the claims department who was friendly and sympathetic. I explained to her that this situation had gone on for days, and I was down to my last $20. If this situation didn’t get resolved soon I wouldn’t be able to pay my rent, or my bills. Although considerate and helpful, she said the issue was under review but she did not have the power to help me and none of the supervisors who could were around.

Now it is Thursday afternoon and this issue has yet to be resolved. I am still dissatisfied with Washington Mutual’s treatment regarding this issue, and I am still confused to has how it got to this point. How can Washington Mutual claim to pride itself on customer service, and customer satisfaction when this situation clearly does not demonstrate those ideals. Even when, or if, this issue ever gets resolved I have to question my loyalty to a bank that so obviously does not respect me as a patron. People do not have to Bank. They are not entitled to our money, yet Banks seem have an attitude that customers are lowly creatures, especially customers like me who work hard all the time for the little savings we do have, and never seem to break even in our bills. Outrageous 33 dollar overdraft charges, and money that just seems to go missing sets a person in my income bracket back about a month. The money that was in the provisional credit, and the overdraft fee’s is the amount I need to pay next months rent and bills, due in less than a week. But Washington Mutual does not seem to care about small issues like this. I find it very sad and discouraging that right now I feel like stuffing my money under my mattress would be a better option than banking with Wamu ever again. At least my mattress wouldn’t make me cry, keep my on hold for 30 minutes, or steal my money in overdraft charges.

I apologize for being so snide, its just aggravating that the situation has gotten this far without any clear resolutions. Thank you for taking the time to read this letter.

Sincerely,
Lila B

Sounds like you're getting stuck in "I only get paid $5.85 an hour" hell. Here are some phone numbers for high-up people who can help you out better than what you've been dealing with so far. Call them up, calmly and succinctly explain what you want them to do, and they just might work some magic for you.

Some advice on writing complaint letters for fun and profit: they're usually much more effective if you can find a high-ranking executive and mail the letter directly to them. Dear Kerry Killinger is going to be more effective than Dear Washington Mutual Management and To Whom It May Concern.

Lastly, I would be remiss to not take the opportunity to point out this story illustrates the hazards of debit card use. Lila would have been much better off with a credit card. That way when it got stolen, the bank would have been out the money instead of you.

Executive Response Team
Customer Relations Manager
Washington Mutual Bank
(800) 225-5497 Opt. 1 Ext. 467
Fax (206) 965-3082

CEO Kerry Killinger
kerry.killinger@wamu.net
His assistant, Wendy: wendy.cadman@wamu.net
206-500-8779

CFO Tom Casey
tom.casey@wamu.net
206-500-4201

Chief Legal Officer Stewart Landefeld
stewart.landefeld@wamu.net

President and COO Steve Rotella:
steve.rotella@wamu.net
206-500-8302

(Photo: babasteve)

7. Consider where you shop.
Lean toward cards that will earn rewards at stores and services you use frequently. For example, airline and hotel discounts won't come in handy for those who aren't frequent travelers.

6. Project your spending.
Try to figure out how much you will likely spend per year and translate that into cash back points or reward points. Then, calculate how far that gets you toward your desired reward. Don't forget to subtract any annual fees. Move away from any card that makes you spend a small fortune for a minu
scule reward.

5. Favor Cash back.
Often times, points go unused which is a bonus for the credit card company. However, cash back will accumulate without you having to anything. Consumer Reports also found that cash back cards usually offer better rewards than point equivalents.

4. Do the math on do-good programs.
Charitable individuals might be attracted to reward cards that give to charities. However, the reality is that they usually pay very low rates. You would probably be better off going with a cash back card and donating the money yourself which would result in a larger donation and a tax deduction.

3. Skip credit card rewards if you carry a balance.
Since reward cards often have higher interest rates, the interest on the balance you carry will probably offset any reward. Look for a standard credit card with a lower APR.

2. Use airline miles fast.
If you manage to save up enough miles for a trip, use them quickly. You never know when one of the airlines will change their conditions or go belly-up.

1. Avoid temptation.
Research shows that credit card users will often spend more in their quest to earn points toward their shiny new prize, however, overspending for a freebie doesn't make good economic sense.

If you think about, what credit card company is going to give you something free unless it is making them more money? These companies have have enormous hives of supercomputers and datajunkies working nonstop to make sure they're making more money than they're giving you in rewards.

Credit card rewards are a real rip off [CNN Money]
(Photo: Getty)

After several depressing months of steadily declining rates, the yields on a few online savings accounts rates rose a tad. With .45 percentage points, HSBC Direct had the biggest jump and at 3.5% reclaims the title as the highest yielding online savings account from a big-name bank with no minimum balance. However, this is only a promotional rate through August 15. Tricky like a rock rhythm. (I found the big red "DEPOSIT MORE NOW" button in the announcement email HSBC sent out especially amusing). You might instead want to look at the online savings account offered by Provident Bank at 3.5%. That's down from 3.75 but the cut was tracked to the decrease in the federal interest rates. So with the Feds saying we're done with cuts for the near future, it's probably decent bet the Provident Bank rate will hold. Here's a good number of the rates that have gone up, and those that have stayed the same or decreased since the last time we posted this info.

For the most up-to-date information on these rates, Bankrate.com's dynamically updated rate charts is where you want to go.

Increased Rates

HSBC Direct: 3.5% APY (no min) (+.45)
Umbrella Bank: 3.4% APY (min of $100) (+.15)
Etade: 3.15% (no min) (+.1)

—-
Unchanged or Decreased

OneUnited: 3.6% APY (min of $1000)
Provident Direct: 3.5% (no min) (-.25)
Washington Mutual: 3.30% APY
iGoBanking: 3.28% (no min)
FNBO Direct: 3.25% (no min)
M&T e-Money Market: 3.25% (no min)
GCFBank.com: 3.14% (only for 90 days) (-.2)
WT Direct: 3.16% (min of $10k) (-.15)
Savings Square: 3.05% (no min) (-.2)
E-Loan: 3.01% APY (no min)
ING Direct: 3.0% APY (no min)
Capital One: 3.0% (no min) (-.5)
GMAC: 3.0% (no min)
Emigrant Direct: 2.75% APY (no min)
Citibank e-Savings: 2.65% APY (no min) (-.5)

(Photo: Getty)

While the Conference Board Consumer Confidence Index is at a 16-year low, the University of Michigan Index of Consumer Sentiment is at a 28-year low (PDF). The index registered 59.8 for May. The last time it was this low was the 58.7 of June 1980, just a year after the stagflation-driven 44.1 of June 1979. I would say it might also be time to bring back another vestige of the era, a disco inferno, except all those polyester suits could probably be better used as an alternative energy source.

(Photo: Getty)

Before You Leave

• Set Goals: Set a daily budget to restrict extraneous spending. Account for food, hotels, transportation, entertainment, and a little extra for those adorable tchotchkes.
• Know How To Exchange Money: Know exactly where you can exchange currency, how much it will cost, and if your credit card is planning to slap you with foreign transaction fees.

While Away

• Track Your Expenses: Either keep all your receipts, or write down your expenses in a notebook. At the end of the day, see where you can cut expenses the next day.
• Separate Your Cash: If you change currency in bulk, separate out the mass of cash into chunks that match your daily budget. Wallets brimming with cash scream "Spend Me!"
• Understand The Conversion Rates: "You’ll do a better job of reining in your purchases if you know how much you are spending. Your rule-of-thumb doesn’t need to be exact. For example, at today’s rate of 1.57 US Dollars to the Euro, I would multiply any price I saw by two and then subtract 20%. (Meaning a 30 euro item is approximately $60-$12=$48.) This accounts for any transaction fees, and slightly overestimates the cost of each item so that there aren’t any nasty surprises when I return home."

How to Track Travel Expenses and Stick to a Vacation Budget [Get Rich Slowly]
(Photo: Rory Finneren)

1. Don't write checks.

Here's the reason: If I write a check at Walgreens or CVS, I'm leaving that check behind with the clerk. And on that check is my name, address, phone number, my bank's name and address, my bank account number, routing number, and my signature. And if that store clerk writes down my driver's license on the front of the check, in nine states—including the one I live in—that's my Social Security number, too. Then, next to it he writes my date of birth.

"Well, I don't get that check back. So I don't know if CVS destroyed the check, if they put it in a warehouse for seven days or 30 days. What I do know is that anyone who sees the front of that check has more than enough information to draft on my bank account.

2. Make sure the IRS cashed your tax check. Crafty thieves look for envelopes addressed to the IRS and, like resourceful squirrels, rip out the delicious fruit inside and claw off the IRS' name and replace it with their own.

3. Don't put checks in your mailbox. "That's like putting the flag up [for fraudsters] to come get my mail." Entrust your check-filled envelopes to the post office.

4. Treat your checkbook like cash. Leaving a checkbook exposed in your car is like hanging a sign on your windows reading "Smash Me!"

5. Balance your checkbook, or at least keep an eye on your online bank statement:

About 51 percent of Americans do not reconcile their bank statement—they don't even open it. Banks love this because we have a law in the United States called Article 3, Section 406 of the Uniform Commercial Code. It says that you have 30 days from receipt of your statement to notify the bank of any discrepancies that may appear on your statement. If you don't do that, then the bank has no liability to pay you.

Our online banking setup keeps us from hunting down the checkbook lurking somewhere in our apartment. Do people still use checks?

5 Ways to Avoid Being a Check-Fraud Victim [U.S. News & World Report]

You should rent:

5. Pickup trucks
Unless you frequently need to haul stuff, you might be better off renting a pickup for the occasional load and driving a car with good gas mileage on a daily basis.

4. Vacation homes
Owning 2 homes is often more than twice the cost of owning one. People often underestimate the cost of insuring and maintaining a mostly unused home.

3. Anything you use once a year or less
Floor buffers, power washers and expensive power tools can be cost effective if renting. Another idea is to go in 50/50 with a neighbor on infrequently used equipment.

2. DVDs
Unless you repeatedly watch the same movies over and over, it makes more sense to rent. If you haven't heard about Netflix by now, it's time to check them out.

1. The next car you plan to buy
If the rental agency offers the particular car, it is a good way to get a feel for a potential new car without the pressure of the salesman.

You should never rent:

5. Wheel Rims
Being a player can be expensive especially since the least expensive rims cost $1000 and up. Rent-A-Center will rent you VCT Grissini wheels for $62 dollars a week for 12 months. However, at this rate you end up paying twice as much as they are actually worth.

4. Furniture
Renting furniture can quickly put you in the red. You can easily spend 100% more than the furniture is actually worth if you rent-to-own. You are much better off by checking out Craig's List or a thrift store.

3. Computers
Unless you are running a small business, renting computers is usually a bad idea. For example Rent-A-Center offers a Dell system for $39.99 a week for 62 weeks totaling $2,479 while the cash price is about $1,100.

2. Televisions
At Rent-A-Center, a 50 inch Toshiba rents for $34.99 a week for 116 weeks totaling $4,000 while the cash price is only $1,200

1. Your Paycheck
Payday lenders loan you cash for a fee. For example, you may be charged $45 to cash a $300 dollar check. This works out to an effective APR of over 400%. If you fail to pay back the loan, even more fees are added leaving you buried.

As a rule of thumb, rent-to-own stores rarely ever make financial sense. These stores profit on people who don't have enough money at the moment but feel they cannot live without certain luxury items. Even carrying a credit card balance for a few months on purchased items is ideal compared to rent-to-own. However, as we see in the list, sometimes renting does make sense, but you can rest assured you will never see such items in a rent-to-own store.

5 things you should never rent [MSN Money]
(Photo: Getty)

1. Be an Amazon member
2. Log in
3. Locate similar, companion or accessory items to the one you want to buy and click "I own this item." For instance, if you want a Sony PSP, claim ownership of a PSP 2GB Memory Stick
4. Wait a day
5. Go to Today's Deals
6. At bottom it says "(Your Name)'s Quick Picks"
7. The item you really want to buy might show up there with 5-15% discount

The Quick Picks are normally based on your previous purchases. But by using the "I own this item" on related items, you may be able to get a deal on a pricey item. It won't work on everything, we're guessing it works best on things where the accessory can only be used for just one item, the item you want.

Tricking Amazon into an extra 5% off [ProBargainHunter]

9 Ways to Save on Gas This Summer [Smart Money] "When you add these seemingly small things together, it adds up to hundreds of dollars in savings."

Political donations: 3 things to know [CNN Money] "Here's how to get the most out of supporting your favorite candidate."

Risk management [MarketWatch] "The top five risks you face in retirement, and tips on how to handle them."

5 things you should never rent [MSN Money] "With prestige items such as big-screen TVs, renting can cost more than twice the price of buying. But there are some things you should always rent."

When to Accept a Job Buyout [Kiplinger] "Consider the severance package, health benefits and pension payments."

— FREE MONEY FINANCE

(Photo: Nrbelex)