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Emily's list: Children's Day edition

2009-11-20T13:09:44Z

National Children's Day is celebrated on different days in various countries across the world. International Children's Day is on June 1, but today is something special -- it's Universal Children's Day.

The holiday was first proclaimed in 1954 by the United Nations General Assembly. It was created in hopes that countries would create their own children's day as a way to celebrate childhood and to encourage an understanding and mutual understanding between children.

One of the greatest things my parents did for me as a kid was teach me about saving and spending from a young age. They started a college fund for me when I was a baby. In elementary school, they gave me a three-part allowance: $1 for spending, $1 for saving and 50 cents for charity (at our temple every Sunday, they passed a jar around for donations). Whenever we would receive money as a gift, they would let us know we could spend it if we wanted to, but they always encouraged us to put it in our savings account, or at least set some of it aside for later.

Those lessons have stayed with me, and while I have flubbed up from time to time, I can't thank them enough for not letting me be a greedy brat and helping me to mature financially.

Did your parents do a good job of teaching you about personal finance? If not, read on to learn about 10 of the best posts in the personal finance blogosphere from the past week. Enjoy!

1. We all have to start somewhere. Master Your Card lists several innovative ways to build your credit.

2. Plan on whipping out that credit card on Black Friday? Don't go into it like a game of Marco Polo. The Simple Dollar reveals his thoughts and strategies for this infamous shopping day.

3. Gift cards are always popular during the holidays, especially when you don't know what your siblings want. Cash Money Life discusses the pros and cons of giving the gift of plastic.

4. The tight restrictions that come with gift cards may soon change. Consumerism Commentary explains why and shows readers how they can have a say in the new rules.

5. Money Ning tells readers why the concept of a 0% balance transfer for life is simply too good to be true.

6. Don't be swayed back to childhood by Christmas carols and holiday cheer. Good Financial Cents provides tips on how to be smart with your credit card while doing your holiday gift shopping.

7. Debt Free Adventure tells us how additional debt payments can significantly help you accelerate your debt reduction strategy.

8. Ask Mr. Credit Card discusses several common high-return credit card reward strategies for which the loophole may be closing. He also explains why there will be more to come.

9. When we are kids, we want everything right away. Most of us gain patience, but some of us still want the good things immediately. Get Rich Slowly explains why the principle of going slow and steady is the key to personal finance success.

10. Money Under 30 examines the differences between large banks and smaller banks or credit unions and makes the case for why the little guys are better.

Senate looking to crack down on deceptive marketing

2009-11-19T21:46:08Z

Always remember someone's name. Trust me -- it could save you at least $19.95.

It happened like this: I put an ad on Craigslist looking for a synthesizer. I got a few phone calls from peeps saying they had one, and one person left a message saying he had the exact one I wanted for a baller price. So I returned the call. No answer. I called again. No answer.

Being the savvy consumer I am, I figured I'd try a different route to track down this deal. But I couldn't remember the guy's name. I Googled the number, and it brought me to PeopleLookup.com. The Web site said it would give me the name, state and address of the person. I figured with this info I could find this dude and seal the deal on the synthesizer.

Creepy? YES.

I signed up for the service; it was 95 cents. Thinking what a great deal I got, I flew through the transaction, and got the name and address I wanted. I then tried to contact the person, only to find the address was in Indiana. It was a fake person; someone just chose a random number in hopes of selling something else -- a basic Craigslist scam.

Weeks went by and that was that. I forgot all about PeopleLookup.com. Until one day I looked at my bank account and noticed a $19.95 charge from Intelius had been deducted from my account.

Hold up. Why was I charged from Intelius? If anything, I thought some random charge was going to be from PeopleLookup.com.

Oh, I forgot to read the fine print:

"Click the 'Continue' button to accept this special offer price and activate your trial membership to take advantage of the great benefits that Identity Protect has to offer. The membership fee of $19.95 per month will be charged/debited by Intelius.com to the credit/debit card you use today with Intelius.com after the 7-day trial."

It was my fault for not canceling the subscription before the 7-day trail offer ended, but who said PeopleLookup.com could give my credit card info to Intelius?

Well, I did when I signed up for the special offer of 95 cents. The "deal" immediately enrolled me in an identity theft protection plan, which costs $19.95 a month. I could have paid $4.95 to get the fake guy's name and address and skip being signed up for the monthly charge, but that would have been too easy.

Straight up, what PeopleLookup.com does is wrong. Even if the deal was somewhat transparent, I don't want my credit card details being passed around like some sort of Thanksgiving turkey. And you know what? The Senate feels the same way.

Next week, the U.S. Senate Committee on Commerce, Science, and Transportation will hold a committee hearing on a report titled "Aggressive Sales Tactics on the Internet and their Impact on American Consumers." During the meeting, they will ... do exactly what that ridiculously long title says --investigate the marketing practices of companies that shadily sign up customers for unwanted services.

Here's another example of such a service: If you go to the movie ticket vender Fandango.com, somewhere between buying the ticket and fully completing the transaction you'll be moved to a "special offer" page. The offer, which TechCrunch has a screenshot of, is $10 off your next purchase from Fandango.

Sounds like a good deal. However, if you're able to read the fine print, once you click on the offer, your credit or debit card details are transferred to a different company, and you're enrolled in a program that costs you $12 a month.

There are basically three Connecticut-based marketing companies that are behind all this -- Affinion, Vertrue or Webloyalty. They are now the target of a Senate investigation against companies that "use highly aggressive sales tactics to charge millions of American consumers for services the consumers do not want and do not understand they have purchased."

The Senate is also investigating companies that have agreements with Affinion, Vertrue or Webloyalty. And there are a lot: A Senate report claims that "more than 450 e-commerce Web sites and retailers have partnered" with the marketing companies. Here are some of them:

1-800-FLOWERS.com
Buy.com
Classmates Online
Continental Airlines
Fandango
Half.com
Hotwire
Intelius
MovieTickets.com
Orbitz
Pizza Hut
Priceline.com
Shutterfly
Tiger Direct
US Airways
Vistaprint USA

So why would a trusted e-commerce site partner up with those grease balls? Money, of course. Affinion, Vertrue, and Webloyalty's e-commerce partners have earned more than $792 million.

Moreover, 88 companies have earned more than $1 million and 19 have made more than $10 million. And get this: Classmates Online has made more than $70 million by confusing customers into signing up for ambiguous monthly memberships.

The Chairman of the Senate Commerce Committee, Sen. Jay Rockefeller, said the primary focus of the investigation is consumer protection.

"American consumers shouldn't have to worry that their favorite Web sites are ripping them off during the checkout process," Rockefeller said at the hearing. "It's not ethical, it's not right, and it's not the way business should be done."

He added, "I worry about this because the holiday shopping season is just beginning."

After the Senate report was released, Affinion, Vertrue and Webloyalty said in statements that they have installed supplementary safeguards. They include being more clear about charges and a new feature that requires customers to enter the last four digits of their credit card number before the membership is charged.

That doesn't get me my $19.95 back. But a sucker is a sucker, and the bottom line is that if you are buying some flowers, movie tickets or even a synthesizer, we all need to keep our eyes open for anything fishy.

In an about-face, NYC cabbies now say they love plastic

2009-11-10T20:30:03Z

For nearly two years, news reports have chronicled New York City cab drivers' love-hate relationship with credit cards -- with an emphasis on the hate. In an abrupt shift, NYC cabbies are now confessing a change of heart toward plastic payments.

Why the warming trend? According a report by the New York Times, taxi drivers' turnaround largely boils down to one thing: money.

Cabbies' displayed early anger over having to take credit cards. Now, The Times writes:

"[T]wo years later, the back-of-the-cab swipe has emerged as an unlikely savior for New York's taxi industry, even as other cities' fleets struggle to find fares in a deep recession."

"Overall ridership and revenue have increased. More and more fares are being paid with credit cards, even for shorter rides. And tips for drivers, usually an early casualty of tough times, are up sharply, double over the pre-plastic days."

Back-seat card readers have apparently helped boost payments, allowing taxi riders to swipe their own plastic with no signing or minimum payments required. That customer-friendly technology also lets cardholders determine their own tip amounts.

Cabbies' growing wallets provide one more example of what credit card industry studies show: People are stingier with real money than with its plastic stand-in. Retailers have long known about this credit card generosity -- which is why they put up with the fees that go along with accepting cards. Cabbies just had to learn this lesson for themselves.

While cabbies enjoy higher earnings, taxi riders may find benefits of their own:

Payment for shorter trips. With no minimum requirements, riders can now put shorter rides on plastic.
Easier tracking of expenses. Credit card receipts show how long the ride was and where the cab went -- helpful for personal record-keeping or corporate expense reports.
Let a machine calculate the tip. In many cabs, riders are given on-screen options for the amount of their tips -- such as the choice of a $2, $3 or $4 tip on a fare under $15.

Riders -- have you experienced a loving reaction from cabbies when you paid by credit card? And what have you found to be the other benefits (or disadvantages) of paying by plastic?

Gift card blog post makes cat-centric carnival

2009-11-09T22:27:58Z

Although I knew cats have established a home on the Internet, I was shamefully unaware of the feline finance category -- until today.

That's when I saw my blog post, "How to check your gift card balance without leaving home," was included in the Carnival of 20-Something Finances: Cats Love Money edition.

What's a blog carnival, you ask? Essentially, carnivals collect links to various blogs united by a central topic (in this case, personal finance), with the carnival hosted at a different site each week.

If you want to read some great posts about personal finance, look at pictures of cats rolling around in greenbacks (seriously) or both, swing by the Foreigner's Finances blog. Meow!

My credit card life living at the Carnival of PF, too

2009-11-09T14:45:22Z

A blog post I wrote last week detailing my credit card use for more than a year has a second home.

The article, "My credit card life in 4 squiggly lines," is living at this week's Carnival of Personal Finance hosted by Canadian Finance Blog. The carnival, which travels from blog to blog each week, showcases the best personal finance articles the Tubes have to offer.

So if you haven't already, be sure to give my post a read, and then check out some of the other great articles at the carnival. Happy Monday reading!

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.