Happy Thanksgiving Day

Have a Happy and Prosperous Thanksgiving Day

Thanksgiving day is a North American holiday, celebrated on the second Monday in October in Canada and the fourth Thursday in the United States. It is a form of a harvest festival.

Although there is some dispute on this matter, according to Wikipedia, "the traditional 'first Thanksgiving' is venerated as having occurred at the site of Plymouth Plantation, in 1621."

It is a day in which many families gather, have a feast and enjoy being together. Let's also give thanks for our many blessings. 

Enjoy the holiday.

Credit Card Rate Increases Coming

The Cost Of Credit Card Debt Is Going Up

Several credit card issuers have just announced that they will raise interest rates and increase some other charges on their credit card holders. American Express and Citigroup have announced they will raise the annual credit card interest rate by 2 to 3 percentage points on 1 December 2008.

American Express and JP Morgan Chase also plan to increase rates on cash advances and for card holders who are carrying large balances from month to month.

Even credit card holders who have faithfully paid on time but have carried a balance from month to month will be subject to higher interest rates and higher fees.

JP Morgan Chase will charge a $10 monthly fee starting in January, 2009 and will rase the minimum payment from 2% to 5%.

Further, for credit card holders who pay off their balances each month,  credit card issuers are looking for ways to increase the charges for these consumers.

Carefully read any communications from you credit card issuer. Make sure you understand any changes they are planning. You may need to shop around, however, this is likely to be a general trend and therefore, the options may be limited.

Read Check your credit card rate; some increases can be stopped. As the financial institutions are being squeezed and their profits decline, they are looking to squeeze their customers in an effort to improve the bottom line.

What Do You Think?

Coupons

A Coupon For You

As the economy continues to spiral downward, you may find that using coupons is becoming more interesting and a way in which you can save some real money. Read Going From Coupon Klutz to Coupon Queen to understand the possibilities available to you.

Here are a few coupon sites to help out with your Thanksgiving dinner purchases:

• CoolSavings.com has a section allowing you to print coupons

• CouponSurfer.com permits you browse by category or logo

• Look on your local grocery store's website for additional coupons
  

Does This Help?

Lunch Savings

Brown Bag Or Order Lunch

Here is an interesting question. If you were to brown bag and bring your lunch to work with you rather than ordering take-out or going out for lunch, how much would you save?

Check out this Lunch Savings Calculator.

Is saving $1,000 a year worth it? How much would you need to save to entice you to carry your lunch?

You may smile because this may seem like such a small thing, however, you can learn how some have used such small techniques to become wealthy. Read The Millionaire Next Door. It is a book which shows how many people who would be considered ordinary are indeed ordinary in most ways but are extraordinary in the way they manage their finances. They appear to be like the people next door except they have accumulated significant wealth by the manner in which they live by doing a number of small things.

What Do You Think?

Required Reading In November 2008

The Great Consumer Crash of 2009

Such a crash might have seemed unlikely to many when it was written, however, perhaps now it seems a lot more likely. The events of the last week and the financial crisis in which we find ourselves, suggest to me that this is worth reading.

This article is worth reading even if you do not agree with all the assumptions. The data upon which Mr. Quinn draws his conclusions have been largely born out in the last few days.

The Millionaire Next Door
The Millionaire Next Door: The Surprising Secrets of America's Wealthy is a book which shows how many people who would be considered ordinary are indeed ordinary in most ways but are extraordinary in the way they manage their finances. They appear to be like the people next door but have accumulated significant wealth by the manner in which they live.

Retire on Less Than You Think
According to Fred Brock, you can Retire on Less Than You Think. Mr. Brock was a business editor at the New York Times for over 10 years. This book explains how people can if they are inclined to do so, retire on less than you think and still have a quality lifestyle. During the past few months as investments have generally declined, such advise may need to be approached with more caution.  

These books and this article are a good read. Although I do not agree with each and every point, they have many excellent money ideas and financial strategies.

Enjoy.

Extended Warranties, Yes or No?

Should You Buy

Probably not. There are many experts who argue that buying an extended warranty is never wise. Since I have not seen all possible extended warranties, I would not go quite that far. However, I have not seen one that I would recommend. 

In fact, an "extended warranty" is not a warranty at all, it is a service contract. According to the Federal Trade Commission, "A service contract is a promise to perform, or pay for, certain repairs or services. Although a service contract is sometimes called an 'extended warranty,' under federal law, it is not a warranty."

"A warranty comes with the original price of the item, whereas a service contract costs extra. It is mainly this separate and additional cost that distinguishes a service contract from a warranty," the FTC said.

Many people report horror stories in trying to get their extended warranty honored. Before you buy one, read this ConsumersAffairs.com article entitled 5 Reasons Not To Buy An Extended Warranty. Their five reasons:

1. They Usually Cost More Than They're Worth
2. Warranty Work May Be Unreliable
3. The Warranty May Not Cover What You Think It Does
4. Warranty Underwriter May Go Out Of Business
5. The Extended Warranty May Overlap Manufacturer's Warranty

My advise - generally decline the offer of an extended warranty or service contract. According to Consumer Reports, there are only two extended warranties you should consider. They conducted a study comparing the cost of repairs to the cost of the extended warranty and concluded that extended warranties should generally be avoided.

What Do You Think?

Saving On Auto Insurance

Shop Around

There are wide differences in the cost of auto insurance. Shop around and compare. A site that may assist you in making comparisons is Insurance.com. On this site you can make comparisons and see who provides the best bargain for you. According to Jeanne Salvatore, senior vice president of the Insurance Information Institute. "Drivers should look for an insurance company that will provide a good price along with excellent service."

Drive Safely

You will decrease the likelihood of having an accident by driving defensively and by obeying the traffic laws. Reduce the possibility of having an accident by driving within the speed limit, adhering to the traffic signs and pulling over and stopping to talk on your cell phone. Traffic violations and at-fault insurance claims will increase your insurance rates. Most insurance companies offer discounts to those who have a clean driving record for a specified amount of time.

Raise Deductibles

The deductible is the amount of money you are required to pay out-of-pocket prior to the insurance company paying on the claim. By raising the deductible amount, you can save a considerable amount of money. The Insurance Information Institute says that you can save 15-30% by increasing your deductible from $200 to $500. Further, they claim that if you increase the deductible to $1,000, you can save approximately 40%. Remember, in the event of a claim, you are required to pay the deductible amount prior to the insurance company paying anything.

What Is The Value Of Your Car?

Sometimes it makes sense to drop collision and comprehensive insurance if the value of your car declines past a certain value. InsuranceUSA recommends discontinuing collision coverage when the market value of your car drops below $2,000. If your car is worth less that your deductible, you are paying for insurance that will never pay anything.

Check Your Credit

Credit scores are used by insurance companies to determine the insurance premium. Check your credit and keep a good credit rating.

Discounts

You may be eligible for discounts on your auto insurance. Check on and take advantage of all discounts. If your car has such features as anti-theft devices, anti-lock brakes and air bags, you may be eligible for discounts. If you keep your mileage lower than normal, you may be able to receive a discount. If you have a young person who gets good grades or a college student living away from home most of the year, you may qualify. Ask about any and all discounts available.

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