Why we are paying illegal interest rates

Interesting video. One more reason to pay your balance off or not use credit cards at all.

$2B more pumped into Cash for Clunkers CARS program

Today the House has approved moving $2 Billion more tax payer money to the CARS program. This is a program designed to stimulate the sales of new cars from dealer lots. Foreign and domestic, your choice. You turn in your older car (that meets a set of criteria) to the dealer and they give you $3,500 - $4,500 off the price of a new car. The government reimburses the dealership from the funds provided.

This plan was put on hold late last night because the demand was so strong, the system setup by the government to process the applications was seriously backlogged not to mention it looked like the first Billion dollars was close to being used up.

Today, instead of keeping this debt creating program on hold while they catchup on applications and improve the system, they are throwing MORE money at this problem.

When will people learn? Just because it is on sale, does not mean you go into debt to buy it...

Consumer Assistance to Recycle and Save (CARS) Act

Most of us have heard the 'Cash for Clunkers' or CARS bill has passed, today was the first official day for using these funds to buy a new vehicle.

This has been passed under the guise of creating more jobs and helping stimulate the auto industry by getting people into showrooms to buy more new, fuel efficient, vehicles. Lets call this what it is, another waste of tax payer money to entice people who cannot other wise afford it, to buy a new vehicle and take on a new car note, one of the worst investment opportunity out there today.

Chances are if your primary mode of transportation is worth $4,500 or less there is a reason you do not have a new car in your driveway...

The program details:

The program is authorized from July 1 to November 1, 2009 with $1 billion in emergency funding, or until funding runs out, whichever comes first.

Trade-in Vehicle Requirements

• Be in drivable condition
• Be continuously insured and registered to the same owner for at least one year
• Have a combined fuel economy value of 18 mpg or less (Work trucks must be pre-2002 regardless of mpg)
• Not be more than 25 years old with historic or aesthetic value. These vehicles are valued by hobbyists or are a valuable source of restoration parts.

New Vehicle Requirements

• The new vehicle must have a BASE manufacturer's suggested retail price of less than $45,000.
• New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.
• New small trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old vehicle, the voucher will be worth $4,500.
• New large trucks (pick-ups and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.
• Consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a pick-up or van weighing between 6,000-8,500 lbs.
• The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of new vehicles and can be found at fueleconomy.gov

For full details visit www.cars.gov

Keys to motivation

Patricia Hill, from the Charlotte Examiner, has a few tips to keep you motivated on your path to becoming debt free. One of her suggestions is to learn to say 'no' when friends or family invite you to go to things like sporting events or concerts.

Some others are directly related to basic goal setting, accountability, reminders and progress measurements.

See the article here

Dave Ramsey in Michigan

For you Michigan readers, August 29, 2009 Dave Ramsey will take his Total Money Make Over Live event to Plymouth at the Compuware Arena!

Checkout www.DaveRamsey.com for details. We attended his show in Grand Rapids in February 2009 and strongly recommend ANYONE to attend if you have read his books or not.

Dave says, "If you really want to get out of debt, you've gotta get MAD. You've gotta get wired up and fired up. You've gotta sell so much stuff, the kids think they're next." We see it every single event. People come to the event depressed and beaten down by debt, but they leave with hope and determination to eliminate it.

Experience it all for yourself by attending Dave Ramsey's LIVE Event.

Mint.com Personal Finance Manager

I started using the personal finance manger at www.Mint.com this week. I am still setting up my accounts and information. A friend recommended it, it is working very well for him. Is anyone out there currently using this?

Mint.com is the nation’s leading online personal finance service, providing 1 million users a fresh, easy and intelligent approach to money management. And it’s free. Mint is tracking over $50 billion in transactions, $15 billion in assets and has identified $100 million in potential savings for its users.

Designed to be effortless, Mint.com takes less than five minutes to set up. Users register anonymously using only a valid email address. Mint then does the rest, securely downloading transaction data from more than 7,500 bank, credit card and investment accounts on a daily basis. Users never need to import or synch their data. Mint applies patent-pending technology and proprietary algorithms to categorize transactions; provide a unified view of all account activity; alert users to low balances, bank fees, upcoming bills, and even potentially suspicious account activity; and give users personalized suggestions for significant savings opportunities. Each user can monitor their total net worth, virtually real time, at www.mint.com, from any mobile phone (by texting short code MyMint [696468]), or by using Mint.com’s iPhone application – rated #1 in the Finance category in iTunes on the day of its launch.

Mint.com is rated top in its category by Kiplinger, Money, PC World and PC magazines, was named one of the 50 Best Websites of 2008 by TIME magazine, and has received four Webby awards, a Thomas Edison award, an American Business Award and accolades from the Wall Street Journal, BusinessWeek,TechCrunch, and Lifehacker, since its September, 2007 launch. The company was named one of 34 international Technology Pioneers by the World Economic Forum in 2008 and publishes an award-winning personal finance blog at www.mint.com/blog/ .