0% Balance Transfer to reduce Credit Card Balance

Some would argue that transferring credit card balances to another credit card and incurring the fees associated with doing so, is not a good idea. This is a good argument for a couple of reasons; opening new lines and increasing the amount of debt. However, if you are disciplined, you may be able to make some headway on reducing the balance owed. Here is a piece from Bankrate.com that gives some good info.

How Fast Does My New Car Depreciate?

Source: How Fast Does A New Car Lose Value

2012 IRS Anticipated Refund Dates

Planning on a tax refund from the IRS in 2012? This schedule is provided by the IRS to give you an idea as to when you can expect your 2012 IRS Tax Refund after filing electronically.


2012 Irs Efile Refund Cycle Chart

Where's my refund? Undelivered Refunds!

This just in from the IRS

WASHINGTON — In an annual reminder to taxpayers, the Internal Revenue Service announced today that it is looking to return $153.3 million in undelivered tax refund checks. In all, 99,123 taxpayers are due refund checks this year that could not be delivered because of mailing address errors.
Undelivered refund checks average $1,547 this year.
Taxpayers who believe their refund check may have been returned to the IRS as undelivered should use the “Where’s My Refund?” tool on IRS.gov. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems.
Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Last year, more than 78.4 million taxpayers chose to receive their refund through direct deposit. Taxpayers can receive refunds directly into their bank account, split a tax refund into two or three financial accounts or even buy a savings bond.
The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. Nearly 8 out of 10 taxpayers chose e-file last year. E-file combined with direct deposit is the best option for taxpayers to avoid refund problems; it’s easy, fast and safe.
The public should be aware that the IRS does not contact taxpayers by e-mail to alert them of pending refunds and does not ask for personal or financial information through email. Such messages are common phishing scams. The agency urges taxpayers receiving such messages not to release any personal information, reply, open any attachments or click on any links to avoid malicious code that can infect their computers. The best way for an individual to verify if she or he has a pending refund is going directly to IRS.gov and using the “Where’s My Refund?” tool.

Will the Payroll Tax Cut Expire in December

I’ve been reading a lot recently about the expiring payroll tax cut. This cut gives workers earning $50,000 per year a $1,000 tax break. This tax, which supports the Social Security program and is paid by employees, was cut to 4.2% of the first $106,800 of a worker’s income, reduced 2% from 6.2%. The payroll tax cut and unemployment insurance were part of a tax deal that President Obama reached with Republicans last December. Both of which will expire at midnight on December 31, 2011.

The different things that I’ve read say that there will be a drama filled show-down at the end of the year. Some say that the Republicans will not agree to any extension, that their position is “anything President Obama is for, we’re against”, regardless of whether or not it helps or hurts the American Taxpayer.

I can only see this through my eyes and the way I see it is this. Any money that the government has is quickly wasted. Any money that I have helps to support my family.

From a taxpayers perspective, a $1,000 decrease in usable cash is a lot of money. Groceries, telephone, electricity, gas in the car...

I know that extending this cut will put a big strain on Social Security, but frankly, we need the money NOW!



I surely don’t have an answer. Maybe if we veto’d most of the bloated government programs and operated on an austerity budget for a few years, then perhaps things would get better. I know that when things are tight at my house, we trim the wants from the needs. Why can’t we do the same in DC?

Only $400,000 left after feeding his family...

Poor thing... Maybe he could get a second job to help him make ends meet!

Multi-Millionaire Lawmaker: I Can't Afford a Tax Hike

Can a debt settlement attorney stop harassing collection calls?

Guest post from Kevin Craig

US citizens suffered from job losses, wage cuts and unemployment after the recent economic depression. Because of this, they are unable to pay their bills and have incurred an insurmountable amount of debt. If they default on their payments, they receive collection calls from the debt collectors. Therefore, in this time of financial crisis you should try to settle credit card debt to avoid the harassing calls from the debt collectors. When you plan to settle your debts, ensure that you hire a debt settlement attorney.

Your creditor might not agree to settle your debt if you are current on your payment so it can be a difficult task for you to settle your own debts. If you hire a debt settlement attorney then you can save a considerable amount on your outstanding balance. When you settle your debt you pay less than you originally owed to the creditors. In order to convince your creditors, you might need to default on your payment, but this will adversely affect your credit history.

Once you default on your payment you may continue to receive collection calls. In this situation your debt settlement attorney can help you avoid collection calls. The creditors generally transfer the delinquent accounts to the collection agencies. The attorney can send a certified mail to the debt collectors asking them to cease communication with the debtors. When the debtor is represented by an attorney it helps to decrease the number of collection calls. The debt collectors might not threaten to take legal action against you if you are being represented by a lawyer. He will be working as a mediator between you and the creditors. The creditor or the collection agency needs to contact your attorney if they need to communicate with you.

The creditors are liable to discuss the debt with the attorney in case they plan to sue you. An attorney can prevent their clients from going to court and help the creditor as well as the debtor to save money.

Your attorney can help you give detailed information on a debt settlement program. It will be easier to find a reliable attorney and can avoid getting into the trap of a fraudulent debt settlement company. Therefore, it is beneficial to hire an attorney to liberate yourself from debt.

AMAT

Applied Materials Earnings Conference Call (Q1 2011)
Scheduled to start Thu, Feb 24, 2011, 4:30 pm Eastern

Kelley Blue Book Announces Winners of 2011 Best Resale Value Awards

Kelley Blue Book Announces Winners of 2011 Best Resale Value Awards

Honda Fit Best in Subcompact
Honda Accord Best in Midsized
Honda CRV Best in Compact Utility

Car Shopping by Phone and Email

I recently read a post at Get Rich Slowly. It was a readers submission describing how they shopped for a new car through email. As I was reading, I found myself thinking about how vulnerable the telephone and email car shopper is to abuse.

The writers strategy was simple; send out a bunch of emails to dealers within a 100 mile radius of where he\she lived, asking for their best drive away price on a specific vehicle (I've linked to the post in the first paragraph if you'd like to read it..) The dealer who replies with the lowest quote wins. Simple enough, seems like a great strategy, but there are a number of big risks doing business this way.

First off, let me get this off my chest and out of the way...

Let's say that tomorrow you show up for work, and the boss calls a meeting first thing. The boss says "In this economy, we have to be very frugal, very aware of our budget, and on the lookout for ways to reduce expenses." "So, today, before we get to work, we have decided to reduce our payroll expenses." "Good news is that those of you who are willing to work for the least amount of money today will have a job; bad news is those that don't give us the best price will not earn our business today." "So, here is what we will do today." "John, how little are you willing to take for your work today?" "Sue, will you do it for less than John?" "And how little are you willing to work for today Bob?".... Ridiculous? What kind of work will the boss get from the lowest bidder? Will they happily do the job for the boss? Will it be done right? Maybe John, Sue, and Bob won't work for a boss like that.

Okay, now back to Car Shopping by Phone and Email...

Asking dealers to 'bid' for your business surely will cut to the chase when it comes to getting the lowest price quote. The only shortcoming; you're doing business based solely on price- not always a good idea, especially when shopping for an automobile,and particularly a new automobile. Dealer reputation is very important when it comes time for when you need them "down the road". How can you be assured that this low quote isn't just bait on a hook?

Shopping with email and over phone gives you the feeling of being in the "drivers seat", eliminating negotiations. However, from the dealers perspective, they want to get you into the dealership. A salesperson uses the phone for two things; setting appointments and ordering lunch! Some will tell you whatever you want to hear to get you to come in, others will be honest. The honest dealers will be those with the marginally higher prices, or those unwilling to discuss price details over the phone.

There is a difference between Price and Cost. Price is something that you pay once, cost is something that you pay for as long as you own the product. Now, you may get a great price quote using the telephone and email strategy, but the cost of doing business with someone who will tell you anything they think it will take to get the sale may be more than the few hundred dollars you might save doing business with someone you can build a long-term relationship with. Sometimes it's better to pay a little more so that you can expect (and get!) a lot more.

If you opt to shop for a car this way, keep in mind that what you hear or read is not always true. Things to consider;

Do I know anyone who has done business with these folks before? Would they recommend them?
Word of mouth advertising is a dealers dream come true or worst nightmare. Ask around for recommendations before agreeing to anything. Reputation rules!

Is this dealership out of state? If so, how can I be assured that they know what they're doing when it comes to registering and titling my vehicle?
If you travel across state lines, beware! Chances are that a same state dealership will be required by the state to register and title your car. If purchased out of state, you are on your own. You will become responsible to visit your states motor vehicle office and take care of all of the paper work.

What are their administrative or documentation fees? Are they disclosed in the pricing that I've received?
These fees can vary between markets and have very wide ranges. You'll want to know if the price quoted includes the doc fee which can be as high as the dealer wants to charge. Note that in most states, this fee has to be the same for all customers and is not negotiable.

Do they have the car in stock?
Are they quoting you a low ball price on a car that they don't have? Dealers do this to get you out of the market, telling you that they will locate one or that they have one on order. Chances are, they don't have one on order and can't get one from another dealer (especially if its a high demand automobile). After making you wait, you'll get a call telling you that they can't get the one you want, but that they have this other model available, and the price for THIS one is a lot more than what you agreed to for the original one! By now, all of the other dealers who did have the car that you wanted in stock have sold out of their inventory. Now you're back to square one, and you can't find the car that you wanted anywhere because they've all been sold! And, because of scarcity in the market, the demand has driven up all of the prices! Make sure that they have one ready for immediate delivery!

What if I need service? Will my local dealer give me the same VIP Priority treatment as they give their customers if I purchased the car someplace else?
Loyalty goes both ways; you're loyal to your local dealer, they're loyal to you. Let's say that the service department is completely booked for the day, and you have a problem that needs immediate attention. You purchased your car from the competition 50 miles away because their price was $300 lower (maybe they even sold you the car at a loss!). Do you think that the service department will bump one of their loyal customers to help you out of your bind? How inclined do you think the dealership that you purchased it from will be to take care of a customer that cost them money on the sale? As I mentioned before, sometimes its better to pay a little more so that you can expect (and get!) a lot more!

How to get the best deal and price on a car

If you want the best deal and price, do your research and show up at the dealership! The best deals are made in person, not over the phone or email. Show them that you're a serious buyer and ready to make a deal by being prepared and ready to buy if the deal is right! An informed automobile shopper is far more likely to get a better deal than someone shopping for the lowest price!

Economic Indicator: Are you buying a car this year?

Things look good- everything seems to be running pretty smooth now! Most prognostications anticipate we are on the crest of the wave to economic recovery. How we hope that this is true!

Jobs reports show that we're losing less jobs. This is a very strange indicator if you ask me. Looking forward to the day when we talk about how many new jobs are created each month versus how many jobs are lost each month.

Housing reports signs of recovery. Lending is easing a little bit (which seems like a lot when compared to what we've recently been subject to!).

New car sales are up too! Even Toyota, in spite of all of their recent woes, report that sales have increased 50% over the same period last year!

Which leads me to ask; do you plan a purchasing a new car or truck this year? Please take the poll and comment about what type of vehicle (Make, model) that you're planning on purchasing.

Creative Fees

With the new laws surrounding the credit card industry, you'd kind of get the feeling that, finally, we "the consumer" have some real protections against the credit card issuers. It certainly seems this way; all the media attention and information notices from the credit card folks. But, as is often the case, things aren't always as they seem.

Sure, the new legislation offers many new protections against abusive credit card practices, like raising the interest rate on existing balances, but you must still be wary! There are other things that your credit card issuer can do to aggravate you, like increase your minimum monthly payments.

The new credit card laws will force credit card issuers to become much more creative in the way that they make their money; this means yet to be heard of fees imposed upon us. Can you imagine what they'll think of next?

Click Here to learn more about the new credit card laws from the Federal Reserve.

Geico Mastercard Adds $48 Annual Fee

First, they reduce credit lines, now THIS!

Effective December 2009, card holders will be charged $4.00 per month for the priviledge of holding one of these cards.

Seems to me this is a sure fire way to thin out the herd of remaining card holders!

Credit Cards and Bank Tellers

My last post talked about how Geico decreased my credit line. An article appears today in USA Today entitled "Credit slashed for responsible borrowers"!

From a bankers perspective, I understand entirely why this 'slashing' is required. Accounts issued to those that don't use them, or to those who avoid fees and other charges are simply unprofitable. It just doesn't make any sense to maintain accounts that effectively cost the business money.

From a consumers perspective, I feel quite defensive about this. First, it can and will impact credit scores (see my last post where I write about this). Second, I feel as though something of mine has been taken away from me un-rightfully, regardless of what the fine print might say.

Seems to me that the banking systems needs to find other ways to support their overhead. Perhaps they may consider reducing their overhead! Executive payroll, even in your small community banks and credit unions might surprise you!

Instead of looking for additional income from creditors, why not fee other transactions? Just for example...

Payroll expenses could be reduced by training customers to use automated systems for routine transactions rather than seeing a live person (teller). How? For every teller window transaction that could have been conducted at an ATM or online, a fee would be imposed that is not imposed had the automated system been used. One would pay extra to talk with a teller. Why? Because tellers cost more! Eventually, people would come to use the less expensive technology, thereby reducing the bank or credit unions reliance on human resources, ultimately reducing overhead expenses.

Would this work? Sure, it already does. When was the last time you talked with a teller when you stopped into ING Direct?

Geico Platinum Mastercard Reduces Credit Lines

I've recently joined the group of folks who have had their credit negatively impacted by a credit card company that indiscriminately reduces credit lines. Geico Platinum Mastercard notified me that they were reducing my credit card line of credit significantly, down to the balance that I had carried on the account. How can this effect ones credit negatively?

A large part of ones credit score is determined by the amount of credit available. Earlier this month, I had a $10,000 limit on this card. If I carried a $1,000 balance, then I had 90% of my credit line available. When the credit limit is reduced, in this case to $1000, the available credit is now $0, making it appear as though I've 'maxed out' my credit line.

When the credit bureaus receive my balance information showing that I now have a $1000 balance on a $1000 credit line, my credit score will be recalculated and will likely drop significantly, for no fault of my own.

How can the credit card companies do this? I have made all of my payments on time, never late, never missed. Managed my account with stellar diligence. Still, I run the risk, again by no fault of my own, that my credit score will suffer. If my score drops, I run the risk of paying higher interest rates for future credit needs. You would think that there would be a law against this!

Read you account agreements carefully. There is almost always a clause that gives the card company the right to reduce or cancel the credit line at their discretion, regardless of your payment history.

What's the solution? I called Geico Platimum Mastercard and asked that they reconsider. They acknowledged that I had always paid my account better than agreed, but that there wasn't anything that they could (or would) do. Because it was a corporate business decision, they could not increase the line so that I would have only 50% utilization, nor would they reduce the APR on the account. My options were very limited.

I could; (1) decide not to pay them, or (2) pay off the balance in full. Fortunately, I was in the financial position that I could chose option 2. In addition, I will be looking for a new insurance company to handle my motor vehicle insurance needs. Note: I did not close the account because I want to keep my available credit lines open in order to preserve my credit rating.

Have you had this happen to you? What did you do?

Taxes

Spent the better part the day yesterday in front of the computer looking for ways to reduce our tax obligation this year. Need I say that this year we're paying in? This is the first time in a long time, so I guess I can't complain too much.

In 2008, we had a job change. This 'life change' job change is part of the reason for the change in tax status; but its not the only reason.

Last year, we changed our W4's so that our employers were deducting the proper amounts from our paycheck. We stopped making loans to the federal government. Before we made this change, we were having too much taken from our pay, of which we'd receive back each year as a refund for overpayment.

Now, instead of waiting a year to have access to this money, we receive it weekly. I must admit however, it sure would be nice right about now to get a check!

2009 Tax Changes

Source: IRS.gov

2009 Tax Changes for Individuals

Child-Related Tax Changes
Information on adoption benefits, child and dependent care credit, child's investment income, and additional child tax credit.

Credit for Prior Year Minimum Tax
There are several changes to the credit for prior year minimum tax.

Earned Income Credit
The earned income credit amounts have increased for 2008.

Education-Related Tax Changes
Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction.

Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders
For tax years beginning after 2007 and before 2011, gross income ...

Health/Medical-Related Tax Changes
Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums.

Home/Residence-Related Tax Changes
Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities.

Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
New limits on exclusion payments made under a long-term care insurance contract.

Itemized Deductions
The itemized deduction phaseout income limits have increased for 2008.

Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced
There are changes to the maximum tax rate on qualified dividends and net capital gain.

Penalty for Failure to File Income Tax Return Increased
The failure to file penalty has increased.

Personal Exemptions
The deduction amount and phaseout income levels have increased for 2008. Also, the definition of qualifying relative is clarified.

Recovery Rebate Credit
See if you are eligible for the recovery rebate credit.

Social Security and Medicare Taxes
The maximum amount of wages subject to the social security tax and Medicare tax has increased for 2008.

Standard Mileage Rate
The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008.

Wage Threshold for Household Employees
The social security and Medicare wage threshold for household employees is...

2009 Anticipated Refund Dates

To find out when you can expect your 2009 IRS Tax Refund, click here!

No Tax Break for Car Loan Interest

As you might be aware, one of the provisions set forth in the proposed stimulus package was a tax break for interest paid on car loans. Sen. Barbara Mikulski (D-Md.) who sponsored the bill, confirmed today Congress has scaled back the bill and interest paid on car loans is not included in the package.

The final stimulus bill agreed upon by the House and the Senate provides tax relief for sales and excise tax.

Automotive News sources said the trim in the tax break for new-vehicle purchases reduced its cost from about $11 billion to about $2 billion. Negotiators wanted to limit the cost of the stimulus bill to ease the concerns of the lawmakers who were concerned with excessive spending.

Sale of Experian based FICO scores discontinued on myFICO.com

Want to know what Experian is reporting about your credit history? It's going to be a little more difficult now!

Experian has announced that this action is specific to their consumer business unit, and will not impact their relationship with lenders.

Fair Isaac has received notification from Experian of its decision to terminate the agreement which allows the distribution of Experian-based FICO® scores and reports from www.myFICO.com.

While it is our desire to continue informing consumers of FICO® scores from all three credit bureaus, FICO® scores from Experian will no longer be available to consumers. FICO® scores from Equifax and TransUnion continue to be available.

There are three myFICO® products which will be impacted by this change:

* FICO® Credit Complete: No longer available after February 13th, 2009.

* FICO® Standard: The single Experian FICO® score and report will no longer be available after February 13th, 2009. You will still be able to obtain FICO® scores and reports from Equifax and TransUnion.

* Suze Orman's FICO® Kit: The single Experian FICO® score and report will no longer be available after February 13th, 2009. You will still be able to obtain FICO® scores and reports from Equifax and TransUnion.

It is important to understand that the majority of lenders will continue to use FICO® scores based on Experian data to make creditworthiness decisions, but those FICO® scores based on Experian data will not be available via www.myFICO.com, nor any other public venue.

We sincerely regret any inconvenience this causes to our loyal customer base. For the affected services, we will provide a smooth and thoughtful transition. Please know we are committed to giving clear and continued communications on this issue.

For more details on this change, especially if you currently own any of the three products mentioned above, we have provided a thorough FAQ, which is found on the FICO® Forums page.

Here is a link to the FAQ