Debt & Money Discussion at CreditMoneyBlog.com

I learned a tough lesson and trusted a financial adviser at my local Chase by investing into Municipal Bonds with the majority of my retirement money. I mostly freaked out about the interest rates going down and it was tempting to do this because it is a way to help to keep my taxes lower. The only problem is that its not making any money. I have lost over $2,000 in these municipal bonds so far and I have to keep the money in the municipal funds for over a year or get a 1% penalty.

As I was listening to someone who is on commission for bad advice I am seeing how much money I could be making in rising savings account rates. HSBC Direct has raised their rate to 3.50% until August 1, and it may even go higher when that promo ends. The first rate increase for nine months happens over at WTDirect from 3.19 to 3.26 APY.

WaMu is also grabbing the attention of customers looking for higher interest rates with the 5.00% Savings Success offer. Walk into your local bank and see what they are offering and search online. If your current bank is still punishing you with low interest from the fed rate cuts then transfer it over to a bank that is keeping up with the competition.

Gas prices are raging high now that we are knee deep in summer travel season and people are on the lookout for anything that will help.  Do not count on gas additives to boost your fuel consumption.  A government agency recently named some advertising claims to avoid such as “improving fuel economy by 20%” and Federal government approved

products.

The EPA has tested over 100 devices and only came back with six that gave improvements in fuel economy.  These are also fractional improvements in the mileage.  Do not fall for these ripoffs even if you see it on TV or hear it on the radio.

It may not be a good thing for your car to put in additives.  If you want to boost your fuel then drink a healthy protein drink and ride your bike to work that is the best way to get around in these trying times.  It may also make your heart stronger for when you see the pump prices in a few months.

The MagicJack is as small as a ciggarrette lighter and it plugs directly into your desktop or laptop’s USB.  This small device allows unlimited calling to the U.S. nationwide and Canada and will even feature International locations soon.  MagicJack only costs $39.95 for an entire years worth of calling and features such as voicemail (and caller id, call waiting, 911).  What is not to like about this “magic” phone service?

Is the MagicJack too good to be true?  I have seen many complains online ranging from it containing adware in the terms and conditions to people being charged before the trial membership runs at at 25 days.  I am always skeptical of anything that is this cheap and how and why it works.  You normally have to look into how this company is making money from such a little profit before you start giving in to the idea.  If you start a free trial then cancel it after a week.  That should be all the time you need to tell if it is working for you and if you want to keep the ‘magical’ device.

It is neat that you can plug a landline or cordless phone into the jack that plugs into your USB.  We will be seeing more and more products like this coming out.  Keep on the lookout for more ways to save money on your phone bills and cancel your landline service.

If you wish to save more money on your landline service then switch over to mobile At Home Networks which AT&T and T-Mobile are offering.  They offer services where you can boost your home cell phone signal for as little as $10 month extra using your DSL or cable broadband.

If you think that high interest accounts are only for the rich then think again. Washington Mutual bank (WaMu) is helping people save money for retirement and future emergencies down the road. The new Savings account promotion will get you 1 year for 5.00% interest when you deposit as little as $1 to start up the account.

The high interest savings account works by taking money out of your WaMu checking account and depositing that money in your savings each month. The transfers would be $25 to $500 each month which are low enough that you may not even notice helping save for college or your future.

You cannot put more than $500 in the account more than once a month so those of you with large amounts of money sitting around you should consider their CD at 3.25% APY. This 5% account is mainly intended to help families or people save money who are not good at saving money and helping them do that at a higher interest rate.

To get into this great deal go into your local WaMu in Georgia, Illinois, Texas, or Washington and ask them to open a Savings for Success account. If you do not live in any of these areas I would recommend that you check out the other WaMu offers online where you can normally get the best deals on higher yields.

Did you notice less people traveling on the highways over the last big holiday weekend?  Americans are driving less.  Gas has quickly become America’s top economic issue since it relates to so many products and services.  Sunday, gas topped the $4 per gallon average the first time first in Alaska then it spread to other states.  On June 10th Maryland, Georgia, and Florida got hammered with $4 gallon gas.

The national average now is $4.04, but that may go up or down depending on the commodities.  The shock about $4 gas could reduce consumer spending drastically because of the fear people will not have any money left over after driving to work and running personal errands.

Commercial fleets are paying 33% of their total costs in fuel now compared to 13% in 2006.  This steady rise in commercial fleets could quickly lead to our own pocketbooks in higher prices for FedEx deliveries, cereal, among other increases in everyday goods and services.

We were complaining about these prices back in 1980 when a new level of $1 was reached but you must consider inflation with these prices.  Then again it took sixty years to reach over 99 cents price point.  Would you love to have some 99 cent gas right now?

Expect lawn care services, shipping, and anyone and everything to try to put on extra fees to pay for their gas.  We will be having dreams of hybrid cars, trucks, and lawn mowers.

You can dream all you want for lower prices at your neighborhood Shell station or 7-Eleven it might come true in a decade or so.  Praying might even come in for some.  We should have gotten off this addiction to oil years ago but we are still craving for crude oil and that’s what we are getting.

Watch out for thieves as gas prices soar.  Crooks are cutting into gas lines in neighborhood malls and shopping centers and even stealing catalytic converters out of trucks and cars parked at residences.  People may even start killing for fuel as these prices continue to rise to keep a closer eye on things when you get out and about.

Cheers to the good inventive people who are coming up with creative ways to keep gas mileage down!

There are a number of choices in budgeting software. The good news is that they all work and work well. On the whole, any budgeting plan works as long as you implement it and stick to it. How should you choose budgeting software? Well, many people start by looking at the software most easily integrated with their bank and other financial resources. Many banks now allow you to download your statements directly into Quicken or Microsoft Money, as you prefer. You might also consider a virtual version of old fashioned envelope budgeting with a product like My Spending Plan at Http://www.myspendingplan.com. You can also find a number of free or shareware budgeting software options on-line if you’d like to get started at a lower cost. Finally, if you already own or have access to a basic database program similar to Microsoft Excel, this is an excellent and easy to use budgeting tool.

Which of these options should you choose? First, consider how much you can afford to spend. There are a number of great free budgeting tools, particularly if you do not need to manage and supervise investment accounts or other more complex financial matters. My Spending Plan works on the envelope system, but you will find that there are a number of other free budgeting software options on-line as well, and one may meet your needs and preferences. Buddi is an open source program that will run on any machine with Java installed and is available at http://buddi.thecave.homeunix.org/en/. 

Buddi offers a traditional way to track your spending and budget your money. GnuCash allows for common financial file downloads and access at no charge gnucash.org. GnuCash offers substantially more accounting tools than the other free options listed, and will also work well for small businesses needing to keep track of their money.

If you are willing to spend on your budgeting software, the two big names in the business are Quicken and Microsoft Money. Microsoft Money is easy to learn and use, particularly if you are already accustomed to using Microsoft products. It has a number of convenient on-line access features as well, including integrated access with MSN Money.

Quicken is available both as Quicken On-line and as a standard piece of software. If you do nearly all your budgeting at home or the office, the traditional software may be a good choice, but if you use multiple computers or are often on the go, the newer on-line option may be an excellent budgeting tool.

Which of these two should you choose? That answer depends upon your bank, investments and other financial matters. Choose whichever is the most compatible with your needs for the most convenient and easiest home money management.

Just in time for one of the biggest travel weekends of the year Oil prices rose to $130 a barrel.  This is the first time it has hit this high of a record and it may not stop anytime soon.  Supply concerns and the Weak American Dollar are just a few of the reasons that oil is rearing its ugly bullish head (not ugly to investors).

Expect prices at the pump to rise in time for Memorial Day weekend.  You may want to think twice about your vacation this weekend or your outing at the beach.  Prices will be sky high at over $4 at some gas stations across the country.

Let’s hope Honda expedites the release of the gas-electric hybrids they have planned to release in the U.S. next year.  Until then its time to get some bicycles and/or walk until these gas prices come down some.  Don’t get your hopes up though because gas prices will not go down until at least October and that is if we do not have a bad Hurricane season.

If you have been seeing charges for rewards on your credit card you may want to call your credit card company immediately and dispute them.  There are a few things the charges could be including a charge from the actual card you are using.  Chase credit cards allows a third party to bill your credit card for rewards programs that really amount to nothing and their are other offers that are really dirty.

If you have went to the movies recently using Fandango or MovieTickets.com or maybe on some other sites there may be a pop-up window that asks you to save $10.  Advice from The Consumerist warns users not to enter your email address because the fine print sets you up on a Webloyalty monthly subscription service.

Your credit card statement may say RESERVATION REWARDS NORWALK
SHOPPERDISCOUNT.COM NORWALK, or WLI*.   You may call to cancel at 1-800-889-8776 and they will issue you a refund.  If that does not work then contact your credit card directly and dispute the charge.

If you have not filed taxes you will not be getting a stimulus check.  You must file taxes and select a check from Uncle Sam or a direct deposit to get the money thrown your way.

Also, there is another alert you might want to watch out for.  Identity thieves will have a new cash cow to go after when Billions of dollars flood the streets as free money from the U.S. Government this week.  You may want to check your mailbox frequently if you requested a check and make sure no one can steal it.  I have seen people stealing out of mailboxes when they know other peoples checks or credit cards are arriving in the mail.  Guard your mailbox by getting your mail immediately.

Did you stimulus check arrive this week?

There are many things you can do with the money.  I recommend paying off your debt or mortgage.  The retailers want you to buy, buy, buy.

Wal-Mart will let you cash your stimulus check for free.  Sony is offering $400 discounts on High Definition TV’s.  The number two retailer Home Depot is giving away big discounts on High Efficiency washing machines such as the GE HE’s.

The absolute best way to spend your Stimulus Check?

More important than paying off debt is actually feeding your family and keeping food on the table.  Kroger and Ralph’s will add 10% of the value to the rebate checks in increments of $300 to each gift card.  Albertson’s, SuperValu, and Shop N’ Save will give you an extra $30 for every $300 in rebate checks you put on gift cards.  Your family can look at this as an investment that will earn more than interest in a bank account and keep you eating during a threat of a recession.

Basically, all you have to do is go in your local store and purchase gift cards with your rebate checks and save huge money from that.  My family can spend $200 at least in one grocery trip so it adds up.

Normally I am not fooled by email scams because of past mistakes, viruses (trojans), and spyware problems.  I have been a victim of password theft to my important email account and lost it for a several earth shattering hours.  Sometimes making a few mistakes helps prevent us from a major theft of our hard earned money.

Today I almost fell prey again to an email that made it through my spam mail to my inbox.  It was asking for a survey that only takes two minutes and I would get twenty bucks added to my bank account at Capital One.  I just happened to have a Capital One bank account so I thought this was legit until I looked over the URL.

Some surveys redirect to third party sites so that is common but the fact that it redirected to a Verizon site that looked to be someones personal site I became weiry.  The URL for a Capital One survey went to a Mysite.Verizon.net.  That seems strange and I would advise anyone stay far away from even clicking on this link.

Dear Customer ,

The Capital One Bank Online department kindly asks you to take part in our quick and easy 5 questions survey. In return we will credit $20.00 to your account - Just for your time!

With the information collected we can decide to direct a number of changes to improve and expand our services. The information you provide us is all non-sensitive and anonymous - No part of it is handed down to any third party.

It will be stored in our secure database for maximum 7 days while we process the results of this nationwide survey. We kindly ask you to spare two minutes of your time and take part in our online survey.

I also noticed something else “phishy” about this email.  The copyright line at the bottom said members instead of member.

Capital One Bank (USA), N.A. and Capital One, N.A., members FDIC.

One more thing noticeable about this email scam is the FROM.  It says capitalsurvey@securenet.com instead of the URL that the link points to.  I would suggest not only looking over the URL that the emails link to before filling out any personal credit information by mousing over the link (not clicking on the link).  Also, check out the reply-to and from email headers.