We recently received our “Economic Stimulus Payment Notice,” and it seems worth far less than the $41.8 million the Treasury spent on printing and mailing. The letter contained no surprises, but did extend the tantalizing possibility that we would receive “a notice and additional information shortly before the payment is made.” Check out the full letter and a handy eligibility chart, after the jump.
personal finance
Bad Voodoo: Transforming Student IDs Into Debit Cards
By 3.21.08
Cash-strapped colleges are partnering with banks to transform student IDs into debit cards. The deals are a windfall for the institutions, but force students to open accounts laden with hefty penalty fees and surcharges.
By 3.20.08
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The IRS is holding $1.2 billion in unclaimed refunds for 1.3 million people who still haven’t filed a 2004 tax return. [IRS]
Mugger Used Our Credit Card, Now CapitalOne Sued Us Without Us Knowing For $1200 And Won
By 3.20.08
Andrew’s wife got mugged, the thief rand up purchases on her credit card, and now CapitalOne has sued them for $1200 and won. How can this be? Andrew writes:
In May of 2005 my wife was mugged at one of the elevated train stations in Chicago. After calling the police and filing a police report, she started calling each credit card company to cancel each account. Except she forgot about one card, her CapitalOne card. A card hardly ever used and only had a $500.00 limit…
Unusual Ways To Teach Kids About Money
By 3.19.08
It seems like there are a million different ways to teach kids about money. And of all the ideas available, Wall Street Journal personal finance writer Jonathan Clements often has some good, albeit unexpected thoughts:
By 3.18.08
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Some of the same strategies that landed sub-prime borrowers in trouble are becoming increasingly popular among the rich as wealth-management tools. [NYT]
Switched To Fee-Free ATM Withdrawals
By 3.17.08
I’m sick of paying ATM fees so I just finished switching to my USAA debit card for my cash money needs. They refund up to $15 of ATM fees per month and don’t charge you any fees for using other people’s ATMs. I’m still keeping my WaMu account but I took my WaMu debit card out of my wallet and just funded my USAA account with some money. Not that I have a problem but I think this will also help reduce petty cash spending. Plus, by using cash more often that means I’m getting more change, and all my coin change goes into my piggy bank (60% full at the moment, looking forward to the day I take it to the Commerce Bank “Penny Arcade” coin-counting machine). With the specter of a recession giving us all wet willies, are you making any changes to your personal finance system?
Weekend Project: Photocopy Your Wallet
By 3.14.08
We’ve all been there, that sickening feeling as you reach for your back pocket, only to find your wallet gone. A frantic search turns up nothing. You feel sad. But you wouldn’t feel that sad if you had photocopied the contents of your wallet. Then you would have a legal copy of your license to use until it got replaced, and all your account numbers and the phone numbers you need to call for replacements. So take a second this weekend to pop your wallet into the photocopy or scanner and keep the paper in a safe place. You might be very glad some day that you did.
Debt Collectors Don Sheep's Clothing
By 3.14.08
“[Debt] Collectors actually care about consumers… They want to teach consumers how to get out of debt. They’re trying to put themselves out of business.” – Rozanne Andersen, general counsel of ACA International (formerly the American Collectors Association) as quoted in this morning’s NYT article, “Debt Collectors Try to Put on a Friendlier Face.” As times get tougher and the options for borrowing from Peter to pay Paul shrink, more accounts are becoming delinquent. This means booming business for debt collectors, but increased activity could bring scrutiny from politicians and regulators, as well as consumer backlash. So, infamous for harassing debtors with abusive and threatening language and incessant calls (all violations of Federal regulations), the industry is trying a new tactic: playing Mr. Nice Guy. They’re conducting personal finance management courses, writing columns about how Abraham Lincoln couldn’t pay his debts, and opened a full-time lobbying office in Washington DC this month.
How Much Do Credit Scores Really Matter?
By 3.13.08
Obsessing over a number that’s only three digits long sounds a little OCD, until you realize how much a hundred or so points on it can cost you. I’m referring to credit scores. This three-digit number that lenders use to determine how favorable a loan to give you can affect many of your financial transactions, but it especially becomes a big deal when you take out a mortgage on a house. Let’s look at a home loan for $300,000 with two different sets of scores:
Break The PayDay Loan Death Cycle
By 3.12.08
Are you trapped in a payday loan death cycle, or have a friend or family member who is? See, the problem with a payday loan is that some people aren’t able to pay the first one off (if you don’t have money in the first place, you’re not going to be any better off two weeks later!), and then have to take out more and more loans to cover each loan they couldn’t pay off. Not only is there high interest, there’s fees. A former PayDay loan lender on personalbudgettraining.com shares his advice for breaking out of the debt trap.
If you can’t get out of this right now, start by advancing $50 less per pay period. Take the difference of what you were paying us in fees and start paying it into an emergency fund. Grab a job delivering pizzas, babysitting, whatever, and pay it into an emergency fund. Borrow less and less from us. Use the EF for actual emergencies. Once you are out of this, don’t get back into it.
Earn more, borrow less, and pay off more.
Sample Script To Get Your Credit Card Rate Lowered
By 3.12.08
Want a lower interest rate on your credit card? Call up your credit card company and say, “I think I’ve been a good customer. I’d like to stay with you, but I really want you to lower the rate on my card. Can you help me?” If they say no, ask to speak to a supervisor and say the same thing. CBCnews approached 10 shoppers at random in a mall and had them call up their credit card company and tell them exactly what we told you. Six of them got their interest rate reduced. Those sound like odds worth playing to me.
Don't Sell Your Stocks In A Bad Market
By 3.12.08
If you’re a stock or mutual fund investor, odds are you’ve had second (or third or fourth) thoughts about what to do in this mostly down rollercoaster of a market. Between episodes of popping Tums and chugging Pepto-Bismol, it’s likely that you’ve contemplated selling your stocks and waiting on the sidelines until things settle down a bit. CNN Money says that while this might seem like a wise path, it’s exactly the wrong thing to do. They list four reasons why you shouldn’t sell now, but the one that stands out among the pack is their reason no. 3 — you underestimate the risk of being out of stocks:
Check Your Credit Card For Fake Charges From "Ich Services"
By 3.11.08
Check your credit card statements for fraudulent charges from a company called “ICH Services,” reports KETV. They’re defrauding consumers across the country at $9.95 a pop with unwarranted credit card charges. If you notice it on your bill, call up your credit card company or bank and dispute the charge. And since your information is now in the hands of criminals, you may want to close down the account and get a new card while you’re at it.
Money For Dummies Book Display Reveals State Of The Union
By 3.11.08
With all the swirling confusion about whether or not we’re in a recession, this Barnes & Noble display completely devoted to Money For Dummies books is a clarion blast of yellow: we’re in deep doggy doo. This wasn’t simply in the business and finance section, mind you, this was the window display.
6 Ways To Save Money When Dining Out
By 3.11.08
RacerX at “Life, Liberty and the Pursuit of Money” has posted the 6 ways he and his wife save money when they go out to eat. Following all of them would make for a noticeably different experience at your favorite restaurant—perhaps more than you’d like. But even adopting a couple of these tips could knock 10% or more off your next fancy meal with the significant other.
