CreditCards.com

Emily's list: Albert Camus edition

2009-11-06T13:30:53Z

On this date in 1913, French writer and philosopher Albert Camus was born in Algeria. Camus won the Nobel Prize for Literature in 1957. His philosophies increased the prevalence of absurdism, the belief that trying to find meaning in human existence is impossible.

Albert Camus in 1957, the year he was
awarded the Nobel Prize for Literature..

In "Le Mythe de Sisyphe" ("The Myth of Sisyphus"), a literary essay on the absurd, Camus wrote, "The struggle to reach the top is itself enough to fulfill the heart of man. One must believe that Sisyphus is happy."

Many of us feel like Sisyphus as we try to escape our debt. We climb and push, but as soon as we are almost out of debt, we fall back down the mountain and into the red again. Maybe it's an emergency that sends us back, or maybe we just fall back into our old habits. Sometimes we get so used to this struggle that it becomes a part of our daily life. It's an ongoing challenge and keeps our adrenaline running.

While we all love working hard to achieve our goals, you don't need to spend the rest of your life fretting about getting out of debt. You do not have to be Sisyphus pushing the stone up the mountain forever. Delight in the fact that one day, your hard work will pay off. You will get over that hump.

For more personal finance tips, information and inspiration, read on and learn from some of the best credit- and debt-related blog posts from the past week.

1. See something on your credit report that shouldn't be there? Mrs. Micah offers steps for disputing an error on your credit report.

2. Ultimate Money Blog features a hilarious list of "The economy is so bad that...." one-liners. One of my favorites: "The economy is so bad that I got a pre-declined credit card offer in the mail."

3. Being Frugal says while it's tempting to pull out the credit card to cover holiday expenses and worry about it later, don't do it. She offers advice on how you can start budgeting for the holidays now so you're not in a world of hurt come January.

4. Frugal Dad describes what it is like to finally be at a place where he and his family are about to finish the climb to debt freedom.

5. Kathryn at Million Dollar Journey tells a compelling story about a major health scare with her son. She explains why in some situations, such as when a life is at stake, money and debt don't really matter.

6. Fabulous Financials explains why the Credit CARD Act can harm responsible credit card users and discusses why she is preparing herself by using only cash for a while.

7. So your debt reduction or savings plan didn't work out as you had hoped? Don't beat yourself up about it. The Simple Dollar explains how you can revise and rework a financial goal rather than giving up and feeling like a failure.

8. Shrinkage is Good explains how your credit can affect your cell phone bill, and how your cell phone usage can in turn affect your credit score.

9. Finances get tricky once they cross borders. Ask Mr. Credit Card helps a reader who is about to move to Australia for a year learn what his options are regarding credit cards.

10. Free Money Finance features a guest post that lists many of the important things you should do and be aware of in order to use a credit card wisely. One of the themes is to put a stop to unnecessary features, such as access checks, before you have the chance to use them.

My credit card life in 4 squiggly lines

2009-11-05T14:35:43Z

Musical equipment, plane and concert tickets, Mexican food, furniture, magazine subscriptions, coffee, shoes, clothes, beer, car insurance, painting supplies, barbecue, video rentals and lots of gas.

I've had a credit card in my name for more than year, and judging by the list above, I've put some pretty stupid things on it. I've charged more than $50 in '80s horror rentals, more than $100 in shoes (they clean though) and countless amounts of breakfast tacos and Mexican beer.

I don't have a lot of regrets, though. I stand by the $550 in recording gear I put on my card, as I am now a critically acclaimed producer. Well, at least I hope to be one soon. The $40 I charged to see drum and bass artist Dieselboy play in the same venue as Norwegian black metal band Mayhem was a solid choice. And the plane tickets to Missouri to spend time with the fam were, of course, a must.

So in an effort to look my credit card debt directly in the face, I sifted through all my old bills and gathered some info. Check out the chart below to see how I've used my card since I first got it in September 2008.

As you can see, I'm still working with about $600 in debt, but it's been declining since it peaked at $957 in July 2009. But hey, that amount is nothing compared to the more than $4,100 that the average senior has after college, according to a 2009 study by Sallie Mae. Plus, I only have one card to deal with, and according to the same study, the average college student has more than four cards. Being average is never a good thing.

I've been reducing my debt by leaving the card at home. I mean, I never really need my credit card, it just happens to be in my wallet next to my debit card, which deducts "real money" from my account. So I never miss it when I hide it in my clothes hamper.

Also, the main reason I got a credit card was to help me get on my feet after I graduated and moved to Austin in August 2008. Now that I'm ballin' out of control, I have less need for a plastic IV line. Plus my credit limit is only $1,000; this has kept me from buying any high-end junk or airline tickets to South America.

My low, well, mega low annual percentage rate has been helpful, too. My current APR is 6.24 percent, and as of Nov. 5, 2009, the national average APR was 12.64 percent. That's less than half, son! I've been able to incur only small monthly charges with this rate, which has kept my balance reasonably low.

I suspect I got this baller rate thanks to my stunningly good looks and musical talent, but my boss(es) tell me it might have something to do with a good credit score and credit report. Luckily, I checked on that last October, and discovered I had a credit score of 769, which is "Great," according to the credit bureau Equifax. The reason my score was "great" was because I had no missed payments, I had a low credit utilization ratio and I have an established credit history of revolving and nonrevolving accounts.

But how did I have credit history if I've only had one credit card for a little over a year? Piggybacking. My parents added me as an authorized user on their credit cards when I was just entering high school, and that decision has built "my" credit score for more than nine years.

Some organizations, such as FICO, the guys who created the almighty credit score by the same name, have tried to halt this practice. They said too many people were using it, making the playing field uneven for folk who didn't or couldn't jump on their parents' backs.

Fortunately, FICO granted piggybacking a reprieve, taking pity on kinfolks and my 769 score.

Without piggybacking, I might have been stuck with a high interest rate and a tiny credit limit on my card. Or even worse, maybe I wouldn't have been able to even get a card. That happened recently to a friend with whom I graduated. She needed a credit card to get a new computer, but she was denied due to no credit history. I imagine, too, she was denied because lenders continue to tighten credit standards.

But for now, I'm happy with my little credit card life. I have a tiny APR, a great credit history and score and I'm on my way to zeroing out my debt. If only everyone could have it this easy.

P.S. Charting my credit card activity was a real eye-opener for me. I'd suggest that everyone with a card do so. There are a lot of programs out there you can use, from ye olde Excel to Adobe Flash. Drop me a line if you'd like some help!

The Nothing Card lets you buy nothing, pay nothing

2009-11-03T21:38:42Z

If you've tried everything to get your debt under control, it may be time to consider Nothing.

The "nothing" in question is the Nothing Card. It's a rectangular piece of plastic with the cardholder's name and a unique 12-digit number embossed on front -- so it certainly looks like a credit card. But upon closer inspection, there are clues that something makes Nothing quite different from your usual plastic.

It's a credit card the Mad Hatter -- or a nihilist or Jerry Seinfeld -- would love.

Instead of an expiration date, the Nothing Card says it's valid forever. Instead of a booklet full of terms and conditions that require a Ph.D. to understand, the Nothing Card comes attached to a single sheet of paper that lays out the card's various benefits:

No finance charges
No monthly statements
No annual fees
No limit on use
No late fees
No identity theft
No promotions
No balance transfers
No PIN number
No fine print

Of course, you can't actually make any charges with the Nothing Card -- and that's the point. Carrying the Nothing Card means you will pay for everything in cash and upfront.

That anti-credit concept is hardly new. In fact, the creator of the Nothing Card says the product made its first appearance about 30 years ago. At the time, former advertising copywriter Gibson Carothers says the card was mailed to some prominent politicians and members of the media.

Recently, the Nothing Card returned. Two years ago in California, Carothers says he watched a man put $100 worth of gas into his SUV. That prompted Carothers to consider how things would be different if the driver had to pay cash. In September 2009, the Nothing Card Web site was launched, offering everyone the chance to have Nothing of their own. "The Internet makes it practical in terms of availability," Carothers says.

As a cardholder myself, I briefly considered what would happen if I tried to make a purchase with my brand new Nothing Card (cost: $6.95), but was wisely discouraged from performing an actual test run. After all, it may have a lot of benefits, but you can't bail yourself out of jail with Nothing in your pocket.

See related: Bail yourself out of jail -- with a credit card

Clothesline debate makes PF carnival

2009-11-02T17:23:54Z

A blog I wrote last week about the pros and cons of hanging laundry out to dry rather than using electric or gas powered dryers made the Carnival of Personal Finance's weekly roundup of blog posts about money.

The blog was featured in the frugality section compiled by this week's host, The Centsible Life. Each week, a different blogger hosts the carnival, which features the best of the blogsphere in personal finance topics.

Who knew?
When I wrote about laundry, I had no idea it was such a hot-button topic, but people are squaring off on both sides of the issue. The pros: saving energy and saving money. The cons: neighborhood eyesores and bad weather. Some are trying to get the Obamas to hang a clothesline at the White House as a show of solidarity with the green movement and energy conservation. But even that is controversial. Stay tuned. There may be a follow-up.

Emily's list: Halloween edition

2009-10-30T11:02:42Z

It's finally time to bust out those crazy costumes and candy bowls. Halloween is here, and whether you're planning to dress up and party, take the kids door to door or sit at home and pass out Kit Kit bars, it should be a night of spooky surprises. Just please, I beg you, don't be one of those people who hands out raisins or pennies to trick-or-treaters!

While monsters, zombies and goblins are oh-so-frightening, it can be equally frightening to check your bank statement or credit card bill. And let's not even think about interest rate hikes and overdraft fees -- the terror!! While it can be hard to face these financial fears, it's a lot scarier being left in the dark ... (insert evil cackle here).

Face your fears and enlighten yourself by reading this collection of the week's best posts in the personal finance blogosphere.

1. Want to change banks but are spooked by the hassle? Being Frugal outlines how to switch banks with ease and confidence.

2. When we're stressed out, sometimes it feels like there is a little devil on our shoulder telling us to go blow money. The Simple Dollar discusses the many ways that stress affects how we spend.

3. Bad debt can haunt you like a ghost. Bargaineering explains the difference between first-party and third-party debt collectors and why it matters.

4. Unfortunately, not all new changes to the credit card industry are good. Christian PF warns readers about three new credit card fees that may creep up on us.

5. Successfully booking travel with your credit card reward points can be more difficult than sitting through a bad horror movie. Ask Mr. Credit Card informs readers about two bloggers who have made it their mission to navigate these frequent flier challenges.

6. Trying to keep up with new bills and laws can make most of us feel like a zombie. But Master Your Card helps us out by listing all of the new credit card legislation currently going through Congress. The list makes tracking legislation a no-brainer!

7. A guest post on Frugal Dad discusses why the end of universal default is one of the most important provisions in the new credit card legislation. Put a stake through its heart, please.

8. It's only Halloween, but Christmas and Hanukkah are just around the corner. Generation X Finance offers tips on how to start saving for the holidays now so you aren't tortured by major debt later.

9. It's fun to play dress-up for Halloween -- it makes us feel young again. But that's no excuse to act like a young'un when it comes to your finances. Studenomics lists several tips for responsible credit card use.

10. Don't worry yourself to death about your finances. Consumerism Commentary explains how seven Zen principles can help guide your money and life.

Pew report: Do credit cards stink?

2009-10-28T16:57:12Z

The Pew Charitable Trusts published a pretty damning report Wednesday about how credit card issuers continue to be "unfair or deceptive" with their products -- despite legislation set to curtail these practices in 2010.

In fact, due to card issuers' egregious behavior (rate hikes, limit cuts, canceled cards, etc.) in the past year, several lawmakers are calling for portions of the Credit CARD Act to go into effect this December -- two months ahead of schedule. Sen. Chris Dodd, in fact, wants an across-the-board interest rate freeze to apply to all credit card issuers and introduced legislation proposing such.

Here are some of the major findings taken from the study of about 400 credit cards issued by the 12 largest banks and 12 largest credit unions:

99.7 percent of bank cards allowed the issuer to raise interest rates on outstanding balances by changing the account agreement unilaterally -- up from 93 percent in December 2008.
90 percent of bank cards had penalty interest rates that could be triggered by late payments or over-limit transactions. All but 10 percent of these cards had penalty repricing terms that would qualify as "hair trigger" under Federal Reserve guidelines (triggers of one or two late payments in 12 months).
95 percent of bank cards allowed issuers to apply payments to low interest balances first, hampering a cardholder's ability to pay down higher interest balances. The other 5 percent did not disclose the issuer's policy.

Yes, people understandably are angry, especially in light of how these changes in credit card terms affect credit scores, credit reports and the ability to pay back outstanding balances during a time when having debt is particularly stressful (think layoffs). I also understand that banks are trying to navigate their way out of the mess they made by having little or no lending standards. It's a difficult time, for sure.

As a consumer, the lesson is apparent: Don't let your debt load get so large that you can't pay it off quickly if necessary. If you carry debt, you are at the mercy of the lending institution holding that debt. It's that simple.

An overriding observation in the Pew report is that credit union credit cards' penalty rates, APRs, cash advance and late fees are more reasonable. In fact, when one of my major bank cards notified me recently of not only an increase in my APR, but also a switch from a fixed to a variable rate with a fixed minimum set rate (which is so convoluted that I had to have someone explain it to me very slowly), I paid off the balance and am now using what was my backup credit card -- issued by a credit union.

But I'm not done. I plan to pay off the balance on the credit union card this weekend. So my emergency fund will be a bit smaller, but in the end, I'm really, really tired of worrying about credit cards. I'd rather just write about them.

How to check your gift card balance without leaving home

2009-10-27T15:42:56Z

You no longer have to reach the store register with merchandise in hand, only to be told your gift card has a zero balance: Consumers can now check how much money is left on their American Express, MasterCard and Visa gift cards without leaving home.

To find out how much money remains on your American Express gift card, just go online. AmEx has set up a Web site that asks cardholders for their prepaid card's number and security code and then provides information on the gift card's available funds and transaction history.

Have a MasterCard or Visa-branded gift card? You can typically find out the remaining balance on your MasterCard gift card either by dialing the toll-free phone number listed on the back and then following the automated prompts or by visiting the Web site listed on the reverse side of the gift card and then supplying your card information. (MasterCard says these methods may vary depending on the individual card's issuer.) You can check Visa gift card balances using a similar process, according to the company's Web site.

Consumer advocates are rarely ones to heap praise on the card industry, but at least one says he appreciates how easy AmEx makes the process of checking gift card balances.

"We consider the American Express gift card to be more consumer friendly than either the MasterCard or Visa gift card, not only because they've eliminated fees but also because their Web site is easier to use," says Stephen Brobeck, executive director with the Consumer Federation of America.

See related: 2008 gift card comparison table

Airing my dirty laundry? No. Just saving $$ and the environment

2009-10-26T21:52:45Z

This week's New York Times editorial about using clotheslines to dry laundry with the crisp freshness of the afternoon sun reminded me of what has become a ritual in my home. For the past three months -- all through a very long, hot summer in Texas -- I've been hanging some of my clothes outside to dry. (Er, not everything, mind you; undies hang on racks in the garage.) On the days when it was 100 degrees or more, this didn't take very long.

To air is divine
Why air dry? The heating element in my gas dryer stopped working and I haven't bothered to get someone out to take a look at it. After the clothes come out of the washer, I shake them out, put them on hangers and place them along the top rail of a gazebo in my back yard. I don't know how much this practice has saved me on my utility bills. It was both a frugal and environmental gesture on my part (and avoidance of making an appointment for yet another repairman to come to my home).

The Times editorial talks about how much both electric and natural gas powered clothes dryers drain our energy resources. In the United States, nearly 80 percent of households own dryers, according to a commentary by Alexander P. Lee, executive director of Project Laundry List, a nonprofit group that promotes energy conservation one clothesline at a time.

The right to dry
As the Los Angeles Times reported in this February 2009 article, line-drying is making a comeback and pitting "right-to-dry" advocates against code enforcement officers who say they are illegal, unsightly nuisances.

Many cities, communities and homeowners' associations ban the dreaded clothesline as an eyesore, a property value downer. It's true you don't see many clotheslines in well-manicured neighborhoods. And let's face it, many clotheslines are pieces of rope strung between tree branches or held up by rickety poles or leaning metal posts. As the New York Times reports, some cities are working to prohibit clothesline bans. At least one college has set aside space for students to set up indoor drying racks for their clothes. What the green movement wants us to realize is that hanging clothes out to dry saves the environment. Financial advisors also point out that it saves money on energy costs.

As a child growing up in South Florida, my mother always hung her (I mean, our) clothes out to dry, even when she owned a dryer. "I like the way my clothes smell when they dry in the sun," she used to say. For my brother and I, it meant schlepping clothes out to the line and then in. The whole process seemed to add oh-so-many steps to the weekend chores. When an afternoon rain shower whipped up, we'd have to dash out there to take in those clothes or endure a lecture from my mother about why we let the clothes get wet.

I remember my adolescent and teenage years and hauling clothes to and from a clothesline was back-breaking work. I also remember vowing to myself back then to have a dryer and actually use it when I grew up. Fast forward to today: I've got a dryer but I'm not using it. And, well, I'm OK with that.

Footnote:
This blog was featured in the frugality section of The Centsible Life for the 229th edition of the Carnival of Personal Finance. Each week, a different blogger hosts the carnival, which features the best of the blogsphere in personal finance topics.

Jim and Pam's credit card troubles bring the laughs

2009-10-26T15:23:23Z

Whether you bought a bucket of cake or a honeymoon trip to Puerto Rico, credit card companies are watching what you spend. This isn't any covert action, however. It's becoming standard practice, and it's even made its way into prime time TV comedy -- not as ads, but plot points.

The Office
The setup: Jim and Pam just got married and are honeymooning in Puerto Rico. While Jim's gone, Kevin from accounting has taken up residence in his office. While Kevin's in Jim's office, Capital One's ID Theft department calls to inquire about unusual activity -- and hilarity ensues. (The fun begins 9 minutes and 40 seconds in to the below episode.)

Parks and Recreation
The setup: As the show opens, an unnamed credit card company calls Leslie (the well-meaning but clueless small-town parks and rec official played by Amy Poehler) about, again, some unusual activity on her card. She's on speaker phone, her cocky and wise-cracking colleague Tom is listening, and the card rep rattles off a series of purchases -- including a bucket of cake -- that leaves Leslie blushing.

While the Parks and Rec clip is just a bit of fun, the scene from The Office is clearly a piece of marketing from Capital One. It's called "product placement" -- when a company pays an artist to strategically feature the company's product in their work -- and it's nothing new. Jerry Seinfeld and Larry David turned it into an art form, memorably weaving Junior Mints, Snapple, Twix and countless other products into the plot of various "Seinfeld" episodes. Now hip-hop artists are even getting paid to name-drop companies in their songs and are making a ton of money in the process. In short, it's everywhere, but it usually doesn't involve credit cards. However, with the industry desperately seeking both positive vibes and profit, things are changing for the funnier -- and I'm guessing we'll see more of this.

Emily's list: iPod birthday edition

2009-10-23T11:00:27Z

I'm going to guess that you have an iPod. No? Then I bet your significant other, child or best friend does. There aren't many people without these portable MP3 players; they are a staple for college students walking to class, people working out at the gym, travelers stuck at an airport and subway riders.

Despite consumers spending less, the $249 iPod classic remains a music-lover's favorite.

On this day in 2001, Apple unveiled the first iPod to the press. It then went on sale to the public on Nov. 10 of the same year for a hefty $399. There was criticism at first of the steep pricetag, but that didn't deter electronics-hungry consumers: In April 2007, Apple announced that it had sold 100 million iPods.

The tiny device has evolved; at first its screen was black and white, and it could only play music. Then it got a color screen and could play videos. Now there's an iPod that is essentially an iPhone without calling capabilities. Ironically, the next version of the iPod is going to finally have AM/FM radio capability. I guess they finally realized that we would not let go of that medium.

Sometimes it's hard to decide when to splurge on a cool purchase like an iPod and when to save or put that money toward paying off debt. I think if you are responsible with money and make payments regularly, it can't hurt to splurge every once in a while.

Read on to discover some of the best personal finance blog posts from the past week. Enjoy!

1. Is credit card debt a part of daily life for you? It doesn't have to be. Christian PF lists the four steps to control your spending.

2. It's no surprise that some debt collectors do not know (or choose to ignore) the law. Bargaineering explains what happens when these rogue debt collectors violate the Fair Debt Collection Practices Act.

3. Clever Dude recounts a recent experience that many of us have dealt with: When you receive money for a special occasion, should you use it to pay off debt or purchase something you have been coveting, such as an iPod, or in his case, a flat-screen TV.

4. Budgets are $exy reminds readers that despite the temptations to spend like crazy, saving money today will give you a much better future with more opportunities.

5. Man vs. Debt lists 92 quotes about debt that will make you think and some that will make you laugh. They are all under 140 characters, so they are easily tweetable as well!

6. Debt Free Adventure asks readers to rethink credit card rewards.

7. Mighty Bargain Hunter thinks that new credit card legislation will hurt everybody -- especially those of us who carry a balance -- and explains why.

8. Get Rich Slowly ponders if you should stop funding your retirement account in order to pay off your debt.

9. Master Your Card explains how closing a credit card account can affect your credit score and discusses the common conundrum of "to close or not to close?"

10. WalletPop discusses the pros and cons of using the low-cost, PIN based Revolution Card, which scored a coup by signing up a major regional bank, Fifth Third, as an issuing partner.

Forget H1N1; nothing scares us like ID theft, survey says

2009-10-22T13:56:15Z

Swine flu? Meh. Paying your bills? No big deal.

When it comes to striking fear in the hearts of Americans, nothing does it like ID theft.

The Unisys Security Index, a survey from IT solutions provider Unisys and Lieberman Research Group that was conducted in September and released on Tuesday, showed that 65 percent of Americans were "extremely" or "very" concerned about fraudsters accessing and misusing their private information. Credit and debit card fraud was second with 64 percent. (It had been first in the previous survey, which came out in April 2009. Just less than 50 percent felt the same way about a potential health epidemic, such as the H1N1 virus, and just more than 40 percent felt that way about their "ability to meet essential financial obligations."

If this surprises you, you're not alone. Here's what an official from Unisys had to say:

"It's kind of amazing," Mark Cohn, Unisys' vice president for enterprise security, told SCMagazineUS.com. "They are more concerned about systems being penetrated and their data being shared than anything else."

It is surprising, and the fear seems a bit misguided. After all, data breaches make huge headlines, but in reality, the risks are smaller than people think. Forty-five states require businesses to tell you ASAP when your data's been compromised, though California Governor Arnold Schwarzeneggar just terminated a bill that would've expanded that state's notification laws. Most banks and other credit card issuers have zero-liability policies, meaning that you likely won't be out much, if any, money. Sure, it'll be a big headache for a while -- you'll likely have to make a bunch of phone calls and write some letters and such -- but except in really extreme cases, it's more nuisance than nightmare. It's fraught with much less peril than not being able to pay your bills or getting really, really sick, so keep your credit cards close, but your resume and your antibacterial wipes closer.

All it takes to commit fraud is a little tape

2009-10-20T17:37:52Z

We've all done it -- ripped up an unwanted credit card application into teeny, tiny pieces and thrown it away. We assume no one will ever take the time to reassemble those pieces and, further, that no credit card issuer will ever accept such a thing -- since it just screams, "Fraud!"

We overestimate. Blogger Rob Cockerham proved that even a seemingly destroyed application may resurface and can potentially cause some nasty financial problems.

Rob Cockerham holds the torn pieces of his credit card application before piecing them back together.
Photo courtesy of Rob Cockerham

Rob decided to test the effectiveness of his usual document-destroying method after hearing a story about a company issuing a credit card in response to a fraudulent application that had been shredded and reconstructed. Rob found a Chase MasterCard application and ripped it up, as he does with other unwanted credit card applications sent to his home. However, this time, he pieced together the fragments with tape.

It took Rob 30 minutes to resuscitate those torn bits.

He mailed the refurbished application to Chase. He made the request even more questionable by asking that the credit card be sent to a different address (his father's) with a different phone number -- his cell number.

A few weeks later, a new card issued in Rob's name arrived at his father's address. Using his cell phone, he quickly activated the card.

"I couldn't believe it at first," Rob said. "To me the most incredible thing was that they didn't bother calling first to see if I had really sent the card in. They have all of my phone numbers."

Rob Cockerham shows the credit card he received after tearing up, taping and then sending
in a credit card application.
Photo courtesy of Rob Cockerham

A Chase spokesman told MSNBC that damaged applications are usually transferred into electronic databases by machine, meaning a live person may not have seen the taped-up application. I wish Chase would send me one of those miracle machines that can open envelopes, unfold paper, place documents onto a scanner and upload them -- all without human assistance. I bet that ingenious contraption could do my homework, too! The spokesman also said Rob's request also might not have triggered fraud alerts because he used an address and phone number that were still somewhat connected to him.

Rob is now more careful when disposing of his financial information and encourages others to be more mindful, too.

"I bought a shredder," Rob said. "It's loud, and it is a pain to add another garbage bin to my office, but I think I've proved that just tearing isn't good enough. Those applications are like a ticking time bomb. You've got to defuse them!"

Rob details this adventure and others on his Web site, Cockeyed.com.

Emily's list: Boss's Day edition

2009-10-16T12:24:10Z

Today is Boss's Day, an annual holiday celebrated in America. A bad boss can make your world a living hell, but a great boss can make your life much easier. Today is a time for employees to thank their superior for being a good and fair boss (though right now, I think it's simply a good time to thank your boss for not laying you off regardless of his or her behavior).

According to Wikipedia, "National Boss's Day" was registered with the U.S. Chamber of Commerce in1958 by a secretary named Patricia Bays Haroski. Her boss was her father, and Oct. 16 is also the date of his birthday. Can you say, "suck-up"? But it paid off -- after four years, the governor of Illinois officially proclaimed the holiday. Other countries now celebrate it, too.

Hallmark began creating cards for Boss's Day in 1979, and many now consider it a "Hallmark holiday" without any real depth. Many people don't even know when it is, let alone celebrate it. Despite that, it is a prime opportunity to get on your boss's good side. Bring in some homemade cookies, write a thoughtful card or deliver a bouquet of flowers. Who knows, you may help get yourself a raise!

While most of us have a boss at work who makes the major decisions, we are all our own bosses when it comes to our finances. We are faced with choices every day -- go on vacation or save the money? Pay off debt or contribute to retirement? Buy a house or keep renting?

I recommend the following posts from some of my favorite personal finance bloggers from the past week. Hopefully the posts will help you learn more about making smart decisions with your money (just don't get caught reading this by your boss, you slacker!).

1. Do you and your significant other constantly fight about spending and debt? Five Cent Nickel discusses a study that finds that opposites attract, even when it comes to money management.

2. Free Money Finance recounts the story of a couple who shed major debt (a story originally reported by this blog's editorial team) and provides his thoughts about their methods.

3. Do you think you have absolutely cut out all the fat that you can, but you're still struggling with debt? The Simple Dollar challenges the notion that it is impossible to cut some nonessential expenses.

4. Many credit card companies have raised their rates in the past year in order to survive during the recession. Cash Money Life offers tips on what to do if your credit card interest rate increases.

5. When your finances are shaky, it can be hard to decide whether or not you should spend money on travel. Gather Little by Little gives readers some points to think about when they can't decide whether they should stay or go.

6. Wisebread discusses whether prepaid debit cards are less expensive and better than regular bank debit cards.

7. Do you sometimes find old gift cards stuffed in a drawer or hidden in your car console? SmartMoney explains why many of us never remember to spend our gift cards.

8. Oh great -- now I really have something to look forward to. Consumerism Commentary shares the news with readers that Bank of America will be adding annual fees to more credit cards, including some that don't have any special features such as concierges.

9. Have you often found yourself with buyer's remorse and credit card debt to show for it? A guest post on Ask Mr. Credit Card lists five ways you can prevent purchasing things you don't really want or need.

10. No Credit Needed explains an experiment that proves micropayments can help you dig your way out of debt.

How I won my wrinkle cream face-off

2009-10-14T14:50:46Z

As a Web-savvy personal finance editor, I would never be fool enough to fall for the "free trial offers" of Acai berry supplements. But I guess I'm a chump for wrinkle-eliminating-spot-fading-luminous-glow-dead-cell-removing facial products. I mean, did you see the before-and-after photos? Wow. Yet another testament to the power of Photoshop.

And that's exactly how I got locked into a 3 month-long battle with my credit card issuer over several "free trial" offers of facial products and hundreds of dollars of recurring monthly charges.

It started out innocently. I was reading something on the Web, saw some testimonial for a beauty product, and clicked on the link. I was taken to a "free trial" offer page, read what I thought was all the fine print (I had to cancel the order within seven to 10 days or I would incur a monthly charge of $65 or so and a new shipment of the product would arrive every four weeks) and filled in my contact information and credit card details. I also clicked on a box that allowed the company to send me samples of other products, which were "free." To quote banker David Hannum, "There's a sucker born every minute."

A few days later, a box arrived with three different containers of magic serums, lotions and capsules, and I promptly went back to the site and canceled the trial period. "See if they can scam me," I thought. If the products performed as promised (I know, I know), then I could always return and order more.

Two weeks later, I received another box of the same products. Suspicious as to why the company would keep sending me stuff after I canceled, I pulled up my credit card statement online and was shocked to see I had been billed for more than $200 from three companies. I called the credit card issuer and complained. It used to be that when you complained about a fraudulent charge, the charges were quickly removed. Not anymore -- or at least not in the case of free trial scams. You have to prove you've been had, which adds insult to injury, but I understand the logic of the safeguards.

First, I was required to call the companies charging me and ask them to reverse the charges. Luckily, the card issuer had the telephone numbers associated with those accounts, so I started dialing. After umpteen hours of precious cell-phone minutes of waiting on hold, I managed to talk to live people (!) at the companies and canceled the orders. I was told that my online cancellation did not go through in the allotted time, which I hotly disputed. Then I was told that the charges would be reversed only after I returned the products (at my expense, of course).

Then, I had to draft a letter outlining how this all happened, who I contacted to cancel the orders and when, and mail it (yes, snail mail) to my credit card issuer.

I was so exhausted from all this that I totally forgot to return the package with the products -- for about a month. That box slid around the back seat of my car until I rechecked my statement again and discovered that yet another charge had been added by one of the companies. That got me going again. I drove straight to the post office, mailed the stupid box, called the offending company, told them to reverse the charge, e-mailed my card issuer to ask them to remove the new charge, and waited. It took almost another month before my account was clear.

Was it worth it? Of course not.

Worse, I think the whole ordeal gave me a new wrinkle.

See related: FTC eyes new rules on (not-so) free trial offers

'Bailout' blues falling on deaf ears

2009-10-13T22:06:38Z

I heard a song playing on the radio in Austin, Texas, one recent night that brought back memories of the classic blues music that I listened to growing up.

Austin singer/songwriter Larry Shannon Hargrove belted out a bluesy tune called "I Need a Bailout" in the style of R&B greats Johnnie Taylor, Bobby Womack and Al Green. (You 20-somethings: If you don't know who these folks are, Google them. They sang and performed some of the best blues and soul songs of the late '60s and early '70s.)

In his song, Hargrove's raspy voice pleads for a bailout from his personal financial woes. Bill collectors are calling and he wants President Obama to give him the "hookup" in the form of a bailout from his debt. Well, the big banks, mortgage brokers and auto and insurance companies got bailouts. Why can't a consumer get the same deal? In the middle of the song, there's a fake phone call to the White House in which Hargrove leaves a message with an operator asking Obama to call him back about his bailout.

Hargrove is no stranger to what he calls "novelty songs." His "Leave Bill Clinton Alone" tune attracted national attention in the days that the former president faced impeachment charges for his affair with White House intern Monica Lewinsky. And another song on his latest CD -- "The Obama Train" -- was written as Obama campaigned for the presidency. He wrote another tune about Austin's police chief after seeing the chief riding around in his crisp uniform on New Year's Eve.

The bailout tune "is my song about the economy," Hargrove told me in a telephone interview this week. "It's how a lot of people might be feeling. You look around and you see a lot of other people getting bailed out. The Lehman Brothers, Bear Stearns, Fannie Mae, AIG. Everybody else is getting a bailout. And then you look at your situation. I'm having trouble paying my bills. Looks like I fit the criteria for a bailout."

He admits it's a "tongue-in-cheek" treatment of what is a very serious problem: consumers in over their heads in debt, much of it built on credit card spending.

Looking for a handout?
Hargrove is putting to music what many people have no doubt thought or talked about openly: Why not give Main Street the same kind of help received by Wall Street bankers? In fact, this point was debated a great deal last year on Capitol Hill and elsewhere. A proposal for forgiving a portion of credit card debt for people enrolled in debt management programs with nonprofit credit counseling agencies was shot down last year by one federal regulator.

It's true that many families are struggling to pay their credit card bills now, especially with recent changes in terms announced by card issuers. But the danger of announcing consumer bailouts is that you may open the door for people to game the system. You might encourage people who can actually pay their bills to stop paying them because they can get a bailout.

A good example is what's happening with mortgages. A recent Los Angeles Times article shines light on "strategic defaulting" -- people with good credit scores and good payment records who just stop making payments in order to reap the benefit of government-backed loan modification programs. I fear that the bailout Hargrove croons about might spur the same behavior. On Wall Street, they call this type of activity a "moral hazard." Where I'm from, they call it "getting over."

I asked Hargrove if he might consider writing a tune about managing your finances smartly and living within your means. Perhaps that won't be as catchy. He's going to think about it, though.

What about Obama?
Before the interview ended, I asked Hargrove if Obama had ever returned his call seeking bailout money. With a laugh, he said: "We're still waiting. I got a recording that said, 'This is Operator 64 from the White House.' But I'm still waiting for [Obama's] return call."