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The Best Apps for Dating

Scott Gamm — Sun, 12 Feb 2012 06:00:00 -0500

Smartphones can do everything these days, and making a little romance is no exception.

10 Tips to Plan a Trip Into Your Family History

Kerri Fivecoat-Campbell — Sat, 11 Feb 2012 06:00:00 -0500

Embarking on a trip to explore your family roots is both exciting and daunting. Here are 10 tips to make the most of your journey.

5 Better Ways to Use LinkedIn to Find a Job

Seth Fiegerman — Fri, 10 Feb 2012 16:41:00 -0500

NEW YORK (MainStreet) — Most LinkedIn users probably know they can use the website to connect with professional acquaintances and view job listings, but the social network offers many other tools that job hunters can use to get ahead in their careers that they might not be aware of.

Just in 2011 alone, LinkedIn introduced a social news feature to help keep users up to date on their industry, added status updates to company pages and improved the search options for those trying to make connections on the site, all of which helped LinkedIn pass 150 million users by the end of the year.

Whether you’re one of those new users or a longtime member, chances are you’re not using the site to its fullest potential. Here are five simple steps you can take on LinkedIn to make your job search more efficient and potentially more successful.

LinkedIn Resume Creator

LinkedIn doesn’t just advertise your resume, it also helps you make one. The LinkedIn Resume Creator transforms the information you’ve put on your profile into a proper resume, using one of a handful of templates available on the site. Users can then tweak that resume as much as they want. Even better, LinkedIn creates a custom URL for the resume so you can quickly send it out to your contacts.

Use the JobInsider Toolbar

Few things help your chances of landing a job quite as much knowing someone at the company, which is why LinkedIn’s JobInsider toolbar is so helpful. Users can install the feature on their Web browser (Firefox or Internet Explorer only) and then turn it on anytime they look at a job posting online to quickly find out if anyone in the person’s LinkedIn network works there. If so, you can ask that person to pass along your resume to the hiring manager or perhaps put you in touch with the hiring manager directly.

Searching for the Right Contact

Even if you don’t have a direct contact on LinkedIn who can help you land a job, you may still be able to use the website to pinpoint the name of someone worth getting in touch with. Just go to search bar in the top right corner of the main page on LinkedIn and click on the advanced search option. From there, you will have the option to search by name, title and company. You can leave the name blank, but enter the company you want to apply for, specify the search for a “current employee” and then select the relevant job title of someone who would be in a position to help with your application (human resources, for example.) LinkedIn will then pull up a list of connections who match that description in order of how many degrees removed from you they are.

Unless you are connected to the person on LinkedIn, you won’t be able to message them directly, but you don’t necessarily need to. If it’s a second-degree connection, try looking at which contacts of yours know that person and ask if they can get in touch on your behalf. Otherwise, just their name and bio should be enough to help you locate the person on Twitter or do a little sleuthing on Google for an e-mail address. It might sound like a lot of work, but reaching out to a hiring manager or human resources person directly can be much more effective than relying on the generic e-mail listed on most job postings.

Follow Your Dream Company

Current and former co-workers aren’t the only ones you should connect with on LinkedIn. The social network also lets users follow updates from companies. This way, you can keep up with business announcements, new hires and perhaps most importantly, job postings.

Consult Your Network Stats

No, we’re not talking about the number of connections you have on the site, though it’s good to keep track of that too. If you look under the Contacts tab at the top of the page, you’ll see a feature called Network Statistics. Scroll down toward the bottom of that page, and you’ll notice that LinkedIn tracks two interesting data points: the cities where your contacts are from and the industries that they work in. It might not seem like much, but if you’re thinking about making a career or location change, this data can give you some insight on where your professional network is strongest.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Text Message Spam: How to Block It

Matt Brownell — Fri, 10 Feb 2012 16:10:23 -0500

NEW YORK (MainStreet) – We all get email spam, and these days it’s pretty easy to deal with: You beef up your spam filter, take your email address off of any mailing lists that give you the option to unsubscribe and add any particularly troublesome emailers to your email client’s blocked list.

Text spam is a different story. It’s not as common as email spam, but it’s a lot harder to ignore when you’re getting it, and it’s not immediately apparent how you go about blocking it. Sometimes it’s a simple matter of replying with the word “STOP.” If that doesn’t work, you’ll need to go to the website of your mobile carrier to change your text options.

If Verizon Wireless is your carrier, go to the “My Verizon” drop-down menu on the Verizon website and click “Manage Verizon Safeguards.” From there you can block unwanted calls and texts from certain phone numbers, though most spam texts actually originate from the Internet. To take care of this type of spam, click “Set Up Internet Spam Blocks” and you can block up to 15 email addresses, domains or text names. If spam is a big problem for you and you don’t get texts from friends via the Web or email, you also have the option to just block all texts that originate from the Internet. If you have kids, Verizon also just introduced a new feature that allows you to block certain numbers from contacting your child and limit the times of day when your kid can text or make calls. It costs $4.99 per month for each line.

The other carries have similar controls. If you’re on AT&T, you’ll need to register to customize your message preferences. From there, just navigate to “Blocking Options” under the “preferences” section to block individual email addresses and Web domains.

Sprint customers should go to Sprint.com, then select “My preferences” under “My Sprint.” From there, select “Limits and Permissions,” then “Block Texts.” Here you can choose which senders you’d like to block.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

4 Places for Free Job Training

MoneyTalksNews — Fri, 10 Feb 2012 15:30:00 -0500

By Brandon Ballenger

The latest numbers from the Bureau of Labor Statistics show that the unemployment rate was 8.3% in January – that’s 12.8 million Americans out of work.

Going without a job for that long can make it tough to get back on your feet. But if you’re ready for some help, there’s lots out there. Money Talks News founder Stacy Johnson takes a look at three places to find free job training and leads. Check it out, and then read on for more.

AARP WorkSearch

Although the program is designed for older job-seekers, their website has lots of information anyone can access, including advice on organizing and updating a resume, where to look for work, and links to lots of tutorials on basic computer skills.

Related to the WorkSearch program are AARP’s Training Assistance Program (TAP) and Senior Community Service Employment Program (SCSEP), both of which are restricted by age and income guidelines. TAP is for those over 40 and helps find and pay for job training; SCSEP helps people 55 and older find community service and nonprofit work. Contact the closest AARP Foundation office to see if you can enroll; there’s a list of AARP WorkSearch locations online.

CareerOneStop.org

Sponsored by the U.S. Department of Labor, this site – and its brick-and-mortar cousins – offer thorough online resources for job seekers. On top of state job banks, there are links to private and government-sponsored job searches. There’s information for veterans, resume templates, searchable data on average occupational salaries in your area, advice on relocating, and plenty more. If that’s not enough, their service locator will help you find a One-Stop Career Center near you so you can get some free one-on-one assistance. (This is where Stacy was standing in the video above – at a local One-Stop Career Center.)

Goodwill

This isn’t just a thrift store chain. Goodwill maintains job training centers too. They do all the usual things – help build resumes, practice interviews, offer advice on dressing properly and what employers want. They also offer training “for jobs in health care, IT, retail sales and management, food services, banking, manufacturing and more,” according to their jobs and careers site. Thinking beyond just hunting for a job, Goodwill can also help you locate child care, counseling, and transportation. Here’s the online Goodwill locator for finding the nearest staffing services location.

Small Business Administration

We often get asked: Is There Legitimate Work From Home? And the answer is yes, but scams are everywhere and the real stuff’s not only difficult to find, but often hard to make a living from. But if you want to start your own work-from-home business, there’s help for that.

The U.S. Small Business Administration has lots of guidance on thinking through new business ideas and learning how to operate one. If you need funding, they can help you find loans and grants. They also offer counseling, mentoring, online training, and frequent local workshops through business centers and their SCORE program. The workshops often carry a fee, but many of their services don’t. Visit SBA Direct to locate your nearest office.

Bottom line? There’s plenty of free help out there, and if you’re among the long-term unemployed, you need all you can get. Want an extra edge? Check out 5 Tech Tips That Will Help You Land Your Next Job.

5 Tips to Organize Your Financial Records Once and For All

Brian O'Connell — Fri, 10 Feb 2012 13:58:43 -0500

NEW YORK (MainStreet) – If you're like most people, you receive bills, bank statements and other financial documents almost daily, either via email or snail mail. In fact, these days you might be getting that data right on your smartphone or tablet device.

Once you've opened them and got the information that you need, where do they end up? Stuffed in a desk drawer, tucked away in your email archive or stored on a website that you’ve already forgotten the username and password to?

The problem is, you know at least some of this stuff is important, but there must be a better way to deal with it all.

The good news is that dealing with all of your paperwork, either online or off, isn't (or doesn’t have to be) rocket science. Just a few simple steps and a little bit of time will help you determine what to file, what to trash, and what to keep right at your fingertips. No matter the date, it's always a good time to exercise some “spring cleaning” on your financial life.

Here are five easy tips for organizing your financial records for better peace of mind, and even better savings.

Reduce Paperwork

It's easy to feel overwhelmed by the sheer amount of paperwork and email messages we receive, from mortgage statements and phone bills to gas station receipts. Your first step is to figure out which you need to keep, and which can be shredded.

A good rule of thumb is that any of your “regular” or monthly bills that have no bearing on your taxes (store receipts, phone, cable or utility bills, ATM statements and deposit slips) can be discarded once you've entered them into your checkbook register, budget spreadsheet or other recordkeeping method. To help, Mint.com has a good – and free – online document management tool for its users.

Keep Important Documents Safe

If you value a physical document, keep your important, long-term personal records and financial information in a place that's safe and easy to access – a filing cabinet or fireproof safe is ideal.

These critical records include: wills, passports, marriage and birth certificates, Social Security cards, tax returns and W2 information (at least five years’ worth of records), mortgage loan information, receipts for tax-deductible items such as charitable donations, receipts and warranty information for appliances or other large purchases, 401(k), IRA, or other investment statements, and credit card agreements. Note that for some key documents like passports and marriage licenses, only an original will satisfy the authorities, so don’t count on printouts or copies to get the job done.

Track Your Spending

Now that you've got your key financial information in one place, it's a great time to examine your spending and saving habits. Where does your money go each month? Track your weekly or monthly spending, starting with the necessities such as rent/mortgage, groceries, household utilities, credit card payments, and student loans – and then see how much you spend on non-essentials. You're almost certain to find areas in which you could cut back and save more.

Or, if it looks like your finances are right on track, you may have money left over that can be directed toward a high-interest savings account, or to reduce your debt. Use some good online savings tools like BankingMyWay’s Savings Goal Calculator http://www.bankingmyway.com/calculators/savings/savings-goal to get on the right path.
Scan Important Documents

For additional safe-keeping of sensitive physical documents, create electronic backups by scanning certain critical documents like wills, birth certificates or car titles, either on your own scanner or at the local copy/print shop.

Pay Your Bills Online

To further reduce paperwork, consider setting up automatic electronic payments from your bank account. When it comes to things like rent or mortgage payments, or any bills which tend to be in regular amounts, paying online or with your smartphone can not only save you the hassle of dealing with checkbooks and stamps, but it helps keep your payments consistent and timely. Just make sure you tell your creditor to email you a receipt, or post one on your account details page.

Once you have a system in place, it gets much easier to stay on top of your finances and the records of those finances, and to make any necessary adjustments to your budget as the need arises or as your situation evolves.

Plus, there’s a bonus: You might even get a better credit rating and a fatter savings account out of the deal, too.

Getting organized is an important step in getting on top of your finances, but so is getting educated. Check out MainStreet's 10 Things You Might Not Know About Your Money and get started!

Refinancing Plans Still Fail to Help the Neediest

Brian O'Connell — Fri, 10 Feb 2012 13:47:27 -0500

NEW YORK (MainStreet) – Are low-income Americans still too risky for Wall Street?

You bet your Bottega Veneta woven leather briefcase they are.

Fitch Ratings has released new data today saying that, as far as continued low-interest rates go, they won’t do much good for those risky “sub-prime” borrowers that bankers and lenders are trying to sidestep on their way to Wall Street every morning.

Economists and financial media types (including this one) have been touting the idea that bargain basement interest rates would be manna from heaven for all homeowners because, on the surface at least, low mortgage rates allow everyone to refinance and pay less on their mortgages every month.

But when it comes to low-income American homeowners, those refinancing doors are closed, with little or no relief in sight, even as the White House trumpets its new mortgage refinancing plan.

To banks and lenders, the issue isn’t about those high-profile buzzwords like “income equality” or “economic fairness.” Rather, it’s all about higher-risk loans they simply don't want to make.

The situation has gotten so dour, Fitch reports, that the only way high-risk homeowners can cut their monthly mortgage payments down is through loan modification – the consumer finance equivalent of threading a needle with a haystack.

While U.S. homeowners have $700 billion accumulated in negative equity on their homes, according to Zillow.com, actual, sustainable loan modification deals are few and far between.

In fact, according to the U.S. Treasury Department, more than 80% of homeowners who are behind on their mortgage payments are ineligible for a government loan modification – and that includes millions of credit-worthy homeowners that banks claim they want to help.

And it’s much worse for high-risk homeowners, Fitch reports. The New York City-based ratings firm says that only 5% of sub-prime borrowers have been able to refinance their mortgages since 2009, compared to 40% of qualified “prime” borrowers.

Worse, the deal that high-risk homeowners are getting is nothing to write a new loan about. Fitch says that the average interest rate cut on a sub-prime refinancing deal is from 7.8% to 7.6%, saving mere pennies on the dollar on a big mortgage loan.

With the pace of mortgage loan modifications slowing, Fitch says deals are now being closed at a rate of one-third of 2010’s rate – the government is trying to step in with expanded home loan modification programs via the recent White House proposal to allow U.S. homeowners of all stripes to refinance their loans.

But the loan modification proposals, issued through Home Affordable Refinance Program (HARP), haven’t really gained traction, and the new White House refinancing proposal is passionately opposed by banks and mortgage companies, and faces an uphill climb in Congress.

In the meantime, low-income, high-risk homeowners can only sit and wait for that knock on the door – hopefully from a bank representative offering a better deal, but more likely from a lender with foreclosure papers in his hand.

Using a Coupon for Valentine’s Day: Frugal or Tacky?

Matt Brownell — Fri, 10 Feb 2012 13:28:54 -0500

NEW YORK (MainStreet) – Deal sites have been hard at work these past few weeks churning out special offers and voucher codes that provide discounts on traditional Valentine’s Day gifts. Groupon, for instance, offered a $40 credit toward FTD.com for $20, while LivingSocial offered a similar deal for Teleflora. But is it tacky to go hunting for special deals and coupon codes to get a present for the special someone in your life?

Most people don’t seem to think so. Deal site RetailMeNot recently conducted a survey in which they asked people in relationships how they would feel about their loved one using a coupon to save money on Valentine’s Day gifts. The results were overwhelming: 80% said they would be “happy” to hear that their significant other saved some money, while just 10% thought that using a coupon made them cheap.

Leah Ingram, who has written books on gifting and etiquette and runs the Suddenly Frugal blog, says that as long as you remember the holiday and buy a thoughtful gift, there’s no shame in using a coupon to save a bit of money.

“You really shouldn’t judge the quality of a gift by how much it costs – that is incredibly tacky,” she says. “If you’re in a relationship where you need to worry about that, you don’t need an etiquette expert, you need a relationship counselor.”

There are, of course, some rules dictating the use of coupons on Valentine’s Day. If you’re going to be pulling out a Groupon at the end of a romantic meal, Ingram says you might want to give your partner a heads-up in advance, and possibly make a self-effacing joke about your spendthrift ways. And while it’s OK to use a coupon or daily deal to purchase a gift, actually giving the coupon itself as a gift might cross an etiquette line if it comes off as a thoughtless, last-minute gesture. The cardinal rule of gifting always applies: It’s the thought that counts.

“To hand over a coupon for flowers or a meal out, that does seem like a cop-out,” Ingram says. “However there’s a lot of deals for what could be a romantic gift, like a manicure, pedicure, spa or even a day out paintballing. If you give something like that, that’s more personal, that’s OK.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

The Next Big Thing: Wear Your Brain on Your Sleeve

Greg Emerson — Fri, 10 Feb 2012 13:00:04 -0500

Peter Freer of BodyWave discusses the vast potential of new wearable brainwave-monitoring technology that will change the way you learn.

What Do Employees Really Think of Google? This Site Will Tell You

Seth Fiegerman — Fri, 10 Feb 2012 12:57:00 -0500

NEW YORK (MainStreet) — No matter how much you may like a company on paper, it’s virtually impossible to know what it will really be like to work there unless you have contacts on the inside. Now there is a website to help job hunters get the inside scoop, without sneaking into the office dressed as a repairman.

TheFit.com launched this week to give applicants “an uncensored snapshot” of life inside dozens of companies by asking current employees to answer a series of anonymous survey questions ranging from “Does your company let you work from home?” to “Has your boss ever taken credit for one of your ideas?”. Based on the answers to these and other questions, applicants can find out whether employees at AT&T have a good work/life balance (they do) and how much confidence Google employees have in their bosses (a lot.)

Other jobs websites like Glassdoor offer similar employee surveys and ratings to help job hunters judge potential employers, but TheFit.com goes one step further by asking more explicit questions. Some of the topics broached on the site include how attractive people in the workplace are, whether their friends are jealous of their salaries and if there are any openly gay people in the office. Perhaps job hunters don’t need to know all of these answers to decide whether to take a position at the company, but putting it out in the open may prevent some potentially unpleasant surprises later.

Users must agree to let the website access their LinkedIn account to browse the responses and are then prompted to answer a couple of quick questions about their commute. From there, they can search for companies by city and see employee review rankings in specific categories like “family friendly” and “play hard”. Once they find a company they like, users can view a list of available jobs at that company on the same page, powered by the job search engine Indeed.com.

If enough people respond to the surveys, TheFit could become a powerful tool for finding a job that is truly right for you.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Credit Q&A: Will Paying More Than I Owe Help My Score?

Jeanine Skowronski — Fri, 10 Feb 2012 12:00:45 -0500

Q: I recently had a statement credit issued for a large purchase on my credit card bill that is showing up with a negative balance owed. Will this net me extra points on my credit score?

A: Sadly, the answer is no because that statement credit isn’t likely to show up on your credit report, says Rod Griffin, director of public education for Experian.

Instead, Griffin says, the issuer is more apt to report the balance as $0, which is certainly good for your total credit utilization ratio despite that the fact that it won’t artificially lower any other existing debts.

Similarly, you won’t earn extra points by paying early because the credit bureaus won’t be privy to that information either.

“The lender only reports if your payment status is current or not,” says Tom Quinn, consumer credit expert for Credit.com. “They would not report if the customer has paid in advance.”

Want to know what can and can't affect your credit score? Email your questions to editors@mainstreet.com.

3 Terrible Cars We Love Anyway

Ted Reed — Fri, 10 Feb 2012 10:55:17 -0500

DETROIT MainStreet) -- The world is so big and so full of so many different types of people that even the Chevrolet Vega has its fans.

We know this because we received lots of emails and comments after writing a story last month listing the 10 Worst Cars of All Time, using the top ten from a list of the 100 worst cars compiled by Edmunds.com.

Our choice for the worst, based on personal experience, was the Vega rustmobile. To quote from one reader's comment, the Vega was a car that "rusted in the showroom." But we were surprised to learn that some people have fond memories of it, memories that go beyond the experience of sitting in the driver's seat and having your foot go through the rusted floor.

Some readers wondered: What's wrong with a little rust if you are in love with your car? One reader commented that he once "borrowed a Mercedes that had the floor rust through. I didn't judge a car by that metric alone." Besides, the Mercedes cost a lot more than the Vega, which sold for under $3,000.

Besides the pleasant memories of bad cars, we also had a lot of questions about why certain cars weren't in the top 10. In particular, people asked why the Pinto didn't make it. After all, during the 1970s, the Pinto and Vega seemed to be joined at the hip as symbols that Ford (Stock Quote: F) and GM (Stock Quote: GM) had lost the ability to respond to, or even perceive, their customers' desires.

We asked Scott Oldham, editor of Edmunds, how the Pinto didn't qualify for the top 10 -- it was No. 16 -- and he said: "The crappiness of the Pinto, although extreme, didn't have as long-lasting or as great an impact on the American automotive culture as the cars we listed in the top 10. It was close, however."

Among our dozens of emails and comments, we got one that provided a little slapstick about the Yugo, which was ranked No. 4.

A reader wrote: "I was at the parts counter the other day and a guy asked the clerk, 'Do you have a set of wiper blades for a Yugo?' The guy thought about it for a minute and said, 'Well, I guess that's a fair trade.'"

As the texting classes put it, LOL. Anyway, here is our list of the top three worst cars people remember fondly anyway:

Pontiac Aztek
Let's begin with the Aztek, which Edmunds ranked as the worst car of all time, saying that not only was it ugly but also that it destroyed an 84-year-old brand. The Aztec was defended by two veterans of the automotive industry.

Ed Ohlin, a Cedar Rapids, Iowa, resident who is former head of U.S. product development for Toyota (Stock Quote: TM), said he sometimes sees an Aztek at the grocery store, and it doesn't look that bad to him.

In fact, "as long as it is not in certain two-tones, it is not the worst-looking vehicle of all time and in fact many not in the car biz would not give it a second notice," Ohlin writes. "It looks like many other more modern crossovers, although the rear-window graphics do show a great lack of taste."

As far as reliability, Ohlin writes, "my guess is that it was just average or slightly below Pontiac average warranty costs after its first year." And Aztek did not kill Pontiac, he says. Rather, the brand "was killed because it was another victim of better Japanese and German alternatives and because of serious badge engineering mistakes by GM."

Pittsburgh resident Dominic Dascola, a longtime employee of GM and GM dealerships and a classic-car enthusiast, writes: "The Aztek was certainly ugly, but I wholeheartedly disagree that it destroyed the Pontiac brand. Pontiac failed because of bad overall management of GM, not because of the Aztek."

Dascola concedes that the 2001 debut car was bad, but "the vehicle was immediately refreshed the following year, dropping the goofy-looking gray cladding and going with a monotone paint scheme, amongst other needed changes to the appearance." The vehicle itself, he says "was not a problem child and did not have numerous recalls. It drove and handled very nicely."

In retrospect, Dascola thinks the Aztek deserves to be honored for being the first crossover vehicle. "It launched a hugely successful new market segment that still captures a good piece of the market," he says. "That in itself makes it one of the most successful vehicles in history."

And by the way, Dascola asks: "Where's the Pinto on this list? The Pinto triggered an immensely more negative impact to the overall market than Aztek could ever dream of."

Ford Edsel
Edsel is always controversial because, despite having earned a reputation as one of the worst mistakes ever, it had a lot of positives.

Michael LaMoy, a retired real estate appraiser who lives in Menifee, Calif., has a soft spot for the car, perhaps because in 1962 he and his wife drove one from Vermont to California.

"I've noticed over the years that the Edsel has been included in an increasing number of 'bad' lists," LaMoy writes. "It didn't used to be, back when the cars were in production, or for a few decades later, but there seems to be a 'repeat this story' thing now that very few people actually had experiences with an Edsel."

"Bad design? There could be a case for that, due to the unusual body design. Bad marketing? Absolutely! But the car came in four models, spread over two series; the smaller two, Ranger and Pacer, were built on a Ford chassis and the larger two, Corsair and Citation, were built on a Mercury chassis, which was a few inches longer."

"So, whatever the quality concerns, they were no worse and no better than those of Ford and Mercury, which were not afflicted with any more problems than any GM or Chrysler products of that era," he says.

Chevrolet Vega
Now it is time to discuss the Chevrolet Vega.

Herb Goldman, a financial adviser from Hollywood, Fla., remembers his 1974 Vega fondly.

"It had a four-speed transmission and a big, sporty stripe running the full length from hood to trunk," he writes. "I managed to drive it cross-country from New York to San Francisco -- I hit 95 on the Bonneville Salt Flats -- and I won't blame the car for me burning out the clutch on the hills."

"It was a lot of fun to drive," he writes, "until the three-year warranty ran out and it started falling apart around me."

Bill Hennelly, an editor at TheStreet, thinks the Vega was "true to its make ... The Vega actually had a nice design," he says. "You could tell it was a Chevy."

Allan Kautz, a physicist and engineer in Naperville, Ill., once owned a 1971 Vega, and writes that "when I tried to repair rust spots by removing the rusted areas, new rusted areas appeared. My conclusion was that the steel from which the car was made was rusted to begin with." Additionally, the engine's soft aluminum cylinders were not lined with metal and had problems -- another reader also mentioned this -- but Kautz's were fixed under warranty.

On the positive side, Kautz said, the Vega was well-designed from a do-it-yourself point of view. "It was very simple to work on, and I learned basic maintenance from this car," Kautz writes.

"It was pretty much a rust bucket when I traded it in on a BMW in 2002," he says. "The dealer gave me credit for a stereo radio." That's as funny as our joke about the Yugo -- worth as much as a set of wiper blades.

If you're looking for more cars that people love to hate, check out our rundown of the 10 Worst Cars of All Time!

Valentine's Day Is Dumb and You're Wasting Money

Jason Notte — Fri, 10 Feb 2012 10:30:00 -0500

NEW YORK (MainStreet) -- Valentine's Day is best illustrated in one series of actions: Withdraw from an ATM what you'd usually spend on date night, withdraw that amount again, show it to the person you love most and then flush the entire sum down the nearest toilet.

That's basically the way every U.S. consumer has spent Valentine's Day since Esther Howland imposed the first mass-market Valentine's Day cards on the American public during the 1840s. Now the whole sordid, red-painted affair is a nearly $18 billion industry that trails only Thanksgiving ($30.5 billion) and Christmas ($135 billion) in holiday spending, according to IBISWorld. That's almost $3 billion more than what's spent on Mother's Day. Sorry, mom, but they just met at a bar two months ago and neither of them are getting any younger.

That spending is only going up this year. The National Retail Federation estimates that American suckers ... er ... lovers are about to spend an average of $128 a pop to avoid getting the silent treatment or a stern dressing down. That's a nearly 8.5% increase from last year and includes an average $37 worth of flowers and $72 for a night out. It's a heart-shaped box of lovestruck spending that hides a rancid center of markups and emotional extortion.

The problem is that a few carnation stems from the nearest 7-Eleven just don't cut it on Valentine's Day. The Society of American Florists says 71% of flowers given on Valentine's Day are roses, with 196 million roses grown for Valentine's Day 2011 alone. That's a tough order to fill after Christmas, which sucks up 30% of the year's plant and flower purchases and gives growers only 50 to 70 days to work on the Valentine's Day supply. It doesn't help that Valentine's Day, which ranks third behind Christmas and Mother's Day, with 20% of annual plant and flower volume and 25% of sales, vaults to No. 1 when it comes to sales of fresh flowers. Roughly 36% of all flower volume and 40% of flower revenue comes from Valentine's Day sales.

With 36% of Americans planning to buy flowers for Valentine's Day, according to the NRF, the holiday lead-up becomes a bizarro Black Friday for flower sellers. A dozen roses that sell for an average of little more than $59 in early January suddenly go for closer to $80 the week before Valentine's day, according to the SAF. That's a 33% premium before you've even picked up your date.

Once that happens, even the most thoughtful romantics find themselves hamstrung by holiday restaurant reservations. A finite supply of restaurant seating and a whole lot of demand can turn professional-grade wooing into amateur hour.

The folks at restaurant ratings guide Zagat say spending on a dinner out jumps from $70 for a typical dinner for two to more than $146 on Valentine's Day. Overall, the NRF says Valentine's Day dinner spending will jump from $3.36 billion in 2011 to $3.58 billion this year. On that night, there's no such thing as an old favorite or a hidden gem.

That place with the great roasted chicken you go to every year for your anniversary? Yeah, it's taken the fowl off the menu for a $45 filet mignon. The bistro with the great tomato and basil soup you sneak into on date night? It wants a reservation a week in advance and is swapping out your soup for an iceberg salad. "Special" Valentine's Day menus ease the burden on kitchen staffs, but turn charming restaurant favorites into lobotomized husks of their former selves for the stay-at-home masses who emerge from DVR-driven hibernation for this one winter's night.

And boy, can those saps spend. Restaurant reservation site OpenTable says 93% of the Valentine's Day reservation holders they surveyed plan to either match last year's dinner bill or increase it. Among all diners, 54% plan to shell out $101 to $200. Another 10% plan to clear that $200 bar easily. Unfortunately for regulars, but booking a table the weekend before doesn't drive down cost or demand, either.

"With this Valentine's Day falling on a Tuesday, we are going to see two spikes in restaurant reservations," says Caroline Potter, "chief dining officer" for OpenTable. "About half of diners surveyed anticipate booking a romantic evening on the 14th, while another 26% are choosing to celebrate on Saturday night, Feb. 11."

Unless your last name is Yossarian, though, this isn't a Catch-22. You know the easiest way to show someone you love them on Valentine's Day? Putting some actual thought into it. Being original. Paying attention the other 364 days a year. Want to give someone a special dinner on Valentine's Day? Find out their favorite meal and cook it. Want to make a romantic gesture? Stay away from the roses you awkwardly buy once a year and make a playlist of songs they love or that remind you of them. Buy or rent a copy of the movie you saw on your first date. Take a walk to the spot where you proposed. You know, try.

It's called effort. You can't buy it at a markup, but it yields premium returns without putting you in the poorhouse.

Morning Deals: Free Pretzel at Auntie Anne’s

Matt Brownell — Fri, 10 Feb 2012 09:28:42 -0500

NEW YORK (MainStreet) – Pretzel shop Auntie Anne’s will be offering a free pretzel March 3 at all of its locations. There’s no purchase necessary, and you can get the pretzel in original or cinnamon sugar flavor. The deal will only be good from 10 a.m. to 3 p.m. that day.

If you go into burrito store Qdoba on Valentine’s Day, purchase an entrée and kiss someone, you’ll get a second entrée for free. You should make sure you actually know the person you’re kissing, and that they consent to the kiss. The promotion is good at participating locations only.

Pizza Hut can help you propose marriage to your significant other for just $10,010, which includes a red ruby ring, fireworks, limo service, flowers, a videographer, a photographer and a $10 pizza hut meal. There are only 10 such packages available, and you can order through Valentine’s Day. You have to redeem the deal by March 31, but don’t worry if you get cold feet – if you don’t use it by then, you’ll get a full refund.

When you buy a two-entrée plate and drink at Panda Express, you’ll get another entrée for free. The deal is good with this coupon at participating locations through March 1.

Through the end of today only, Banana Republic offers 30% off your entire online purchase when you use the coupon code BRSAVE30 at checkout. Shoes, handbags and leather handbags are among the exclusions listed in the fine print, which can be found by clicking “click for details” under the coupon code banner. The code is good until 11:59 p.m. EST and doesn’t apply toward taxes and shipping – though as always, shipping is free if your order totals more than $50.

Don't want to spend too much? Check out our Deals & Steals hot topic for more bargains. Don't want to spend anything at all? There's plenty of Free Stuff to be had as well.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

What Would Amazon and Google Stores Look Like?

Matt Brownell — Fri, 10 Feb 2012 09:00:00 -0500

NEW YORK (MainStreet) – Amazon has led the way in showing that companies don’t need a physical store to become a retail giant. So the news that Amazon is considering opening up a bricks-and-mortar retail store this year might come as a huge surprise to many shoppers. According to reports, the first store will open up in Seattle – home of the company’s corporate headquarters – and will focus on the retailer’s various mobile devices and accessories.

Amazon isn’t alone in making the jump into the real world, either. According to one report, the company has filed a planning application in Ireland to open a storefront in Dublin to sell unspecified merchandise.

So why should two companies that have built multi-billion dollar empires on the Internet suddenly express interest in the real world? As with much that happens in the tech world, they may be following Apple’s lead.

“My best guess is that it’s a big push due to Apple,” says Mickey Klein, head of the consumer team for global investment firm The Astor Group. “What consumers are getting there is a good touchy-feely experience, and [Amazon and Google] want to have boutique-type stores for customer to come in and have a real personal experience.”

That influence hints at what consumers can expect to see from the Web giants. While everyone talks about Amazon’s competition with Barnes & Noble, it’s unlikely that we’ll see Amazon open a massive book store to compete in that space. Rather, analysts say, the Amazon Store will likely be used as a showcase of sorts, aimed at consumers who want to try out the Kindle or Kindle Fire in person before they buy it.

“They’re not going to be warehouse stores, they’re going to be a showcase for digital media products like the Kindle, the Kindle Fire and, we think, smartphones and smart TVs down the road,” says Shawn Milne, an analyst for Janney Montgomery Scott. “I would envision them showing products, but not keeping anywhere near the level of inventory you see in most retail stores. “

Google, meanwhile, is likely to take a similar approach. Its local planning application reportedly calls for a store that’s about 1,300 square feet, even smaller than a typical Apple Store, so don’t expect much more than a pretty showcase for its Android smartphones and tablets. But more than just showing off the products, both the Amazon and Google Stores may also be an experiment in brand-building, a gambit to see if they can associate themselves with the kind of top-notch, in-person customer service for which Apple has quickly become famous.

Klein says that such an effort is already underway with Google’s recent onslaught of cute commercials pushing its Chrome browser and associated products, and he thinks that the company would be wise to continue that effort by establishing Genius Bar levels of customer support.

“It’s done amazing wonders for Apple,” he says. “We have switched over half of our office computers to Macs because of the experience we got at the Apple Store.”

If Google and Amazon think they can inspire that kind of loyalty by hanging a shingle and putting a friendly face on their business, they’d be crazy not to try.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

The Most & Least Expensive Cars to Insure

Jeanine Skowronski — Fri, 10 Feb 2012 07:00:00 -0500

Find out which 2012 car models cost the most to insure annually, according to research by Insure.com.

10 Student Loan Terms Explained

Kristin Colella — Fri, 10 Feb 2012 06:00:00 -0500

Millions of Americans rely on student loans to help pay for college, but understanding the jargon associated with them can be overwhelming. Here’s a simple guide to 10 terms all borrowers should know.

Most Workers Under 35 Say They Haven’t Started Their Career Yet

Seth Fiegerman — Thu, 09 Feb 2012 17:48:01 -0500

NEW YORK (MainStreet) — If you're still struggling to break into the career of your choice, you're not alone.

The Pew Research Group surveyed nearly 1,000 workers between 18 and 34 and found that 39% characterize their current position as “just a job” and another 30% see it as a “steppingstone to a career.” Only 30% of those surveyed believe the job they have now is actually a career.

That number does improve somewhat for those with a higher education level, as 49% of college graduates in this age group say their current job is a career. However, that still means more than half of college graduates have yet to really get started in their field of choice.

To some extent, this should come as little surprise given the tough job market, particularly for recent graduates. The Pew survey found that nearly half of those in this age group had taken a job just to pay the bills in recent years and 35% had opted to go back to school. For better or worse, each of these steps effectively delays the start of one’s career a little longer.

Seth Fiegerman is a staff reporter for MainStreet. You can follow e-mail him at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

This Is What Happens to the Economy If the Payroll Tax Cut Isn’t Extended

Seth Fiegerman — Thu, 09 Feb 2012 16:20:00 -0500

NEW YORK (MainStreet) — If Congress fails to approve an extension on the payroll tax cut in the next two and a half weeks, the average household will see their take-home pay shrink by about $20 each week. While that may not sound like much at first, one research group predicts that it will significantly weaken an already fragile economic recovery.

The research firm IHS Global Insight originally forecast that U.S. economic output would grow by 2.1% in 2012, assuming that the temporary payroll tax cut was extended through the remainder of the year. However, according to Gregory Daco, an economist at the firm, the annual growth rate would fall by 0.3 percentage points to 1.8% if the tax cut expired at the end of this month.

“The tax cut might seem small, but it does impact the way people are feeling,” Daco says. “If after a couple months consumers realize they are being paid a little less, that will start to have a pretty big impact on their spending.” That in turn would have a ripple effect on businesses and their ability to hire.

Much of the reason for this drop in spending would of course be due to consumers having less disposable income, but Daco argues that a failure to extend this policy would severely weaken consumer confidence, which in turn reduces their spending even more.

“If you look back at the debt ceiling debacle last year, that had a tremendous impact on consumer confidence with it plunging by one of the largest amounts ever recorded,” he says. “If consumers don’t feel confident about the way Washington is handling policy, they will hold back on spending and be more cautious.”

To make matters worse, unemployment insurance will begin to expire for more than 3 million jobless Americans if it isn’t extended by the end of this month. If both of these policies were not renewed for the remainder of the year, Daco predicts economic growth would fall even lower to 1.6%.

To put that in perspective, economists generally say the economy needs to grow by at least 2.5% to prevent the unemployment rate from going back up. By this standard, if the economy grew by just 1.6%, the unemployment rate would likely remain flat or tick up by as much as a percentage point.

Given the many other threats to economic growth this year – from the debt crisis in Europe to the volatile housing market – that may be the last thing we need.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Could ‘Downsizing’ Come to Fast Food?

Matt Brownell — Thu, 09 Feb 2012 16:08:24 -0500

NEW YORK (MainStreet) – For years, diners at McDonald’s have been given the option to pay a little extra to “super-size” their meal. But as Americans pay more attention to their calorie intake, would they similarly embrace the option to “downsize” their portion size?

To answer that, researchers from various universities set up a study at a Panda Express restaurant in Durham, N.C., in which patrons were given the option of “downsizing” their side dishes to a smaller portion. The study found that 14% to 33% of customers took that option – and interestingly, they did so whether or not they got a 25-cent discount for going with the smaller portion.

The researchers conducted the experiment in hopes of finding an alternative to calorie counts, which have had mixed success in getting eaters to cut back. It appears they were successful.

“Overall, those who accepted smaller portions did not compensate by ordering more calories in their entrées, and the total calories served to them were, on average, reduced by more than 200,” researchers wrote in the study, published in the journal Health Affairs. “We also found that accepting the downsizing offer did not change the amount of uneaten food left at the end of the meal, so the calorie savings during purchasing translated into calorie savings during consumption.”

So could we see fast-food chains implementing this strategy? On paper, it makes a lot of sense: Chains from McDonald’s to KFC now offer various healthy menu items, and you have to think that big chains would be attracted to a plan that allows them to offer less food for the same amount of money. But there are reasons to believe “downsizing” might not be around the corner.

“It’s against the industry ethos of ‘Would you like a slice of apple pie with that?’” explains John Gordon of Pacific Management Consulting Group, which specializes in chain restaurants. He adds that the results may be skewed by the fact that the experiment was carried out in the relatively upscale locale of Durham, N.C., noting that healthy options tend not to fare as well in less wealthy areas.

And despite the survey results, there’s also the question of whether America is really yearning for smaller portions. While much is made of the fact that soft drink sizes have grown considerably over the past decades, Gordon says that the recession actually brought about a reduction in food portion sizes at cost-conscious quick-serve chains – and customers may rebel if the food gets any smaller.

“Through the Great Recession, there has been a tremendous amount of portion reduction and downsizing,” he says. “I think the wise heads in the industry think they have pushed that as far as they possibly can.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Fed Official Says Fed's Interest Rate Policy May Hurt the Economy

Brian O'Connell — Thu, 09 Feb 2012 15:29:22 -0500

NEW YORK (MainStreet) – Acknowledging the danger of a near-zero interest rate policy, one Federal Reserve bigwig says that it’s a policy that may be becoming “counterproductive.”

James Bullard, the chief executive officer of the Federal Reserve Bank of St. Louis, says it could be a long time before interest rates get off the floor, and that could hurt the economy – and especially older bank savers.

There’s no doubt that bank rates are at historic lows. Here’s a snapshot of some key bank interest rates, as measured by BankingMyWay’s National Money Market, Savings and Interest rate Checking calculator:

Interest Checking
Interest rate: 0.071%
Date: 2/9/2012

Money Market
Interest rate: 0.157%
Date: 2/9/2012

Savings
Interest rate: 0.112%
Date: 2/9/2012

In a Feb. 6, 2012 speech to the Union League Club of Chicago, Bullard said a policy of short-term low rates that lead to the level of bank rates listed above is understandable – even preferable – but a policy of long-term low interest rates could be downright harmful.

“If we were proposing to remain near-zero for a few quarters, or even a year or two, one might argue that such a policy matches up well with the short-term business cycle dynamics of the U.S. economy,” he said. “But a near-zero rate policy stretching over many years can begin to distort fundamental decision-making in the economy in ways that may be destructive to longer-run economic growth.”

Bullard seemed particularly concerned about older bank savers, who comprise the majority of certificate of deposit, money market, and interest and savings account savers in the U.S., as a continued policy of low-interest rates is really beginning to eat into their budgets since the money can't even keep up with inflation.

“In particular, the lengthy near-zero rate policy punishes savers in the economy,” Bullard explained. “Because of life cycle effects, most of the asset holding in the economy is done by older Americans. Recent readings from the TIPS market suggest a 10-year real rate of return of minus 30 basis points or so, and a five-year real rate of return of about minus 120 basis points.”

Low rates aren’t only hurting older Americans – they’re impacting the younger generation as well.

“In principle, the low real interest rates should encourage younger generations to borrow against their future income prospects and consume more today,” Bullard says. “However, this demographic group faces high unemployment rates and tighter borrowing constraints, which may limit its ability and willingness to leverage up to finance consumption.”

Bullard explained that this scenario may not work out well for either demographic in the end.

“Consequently, the consumption of the older generations may be damaged by the low real interest rates without any countervailing increase in consumption by other households in the economy,” he says. “In this sense, the policy could be counterproductive.”

Bullard took pains to say that the scenario he described in Chicago isn’t really applicable to the next few quarters. But over the long haul, if that scenario is “stretched out over many years,” then low rates may really damage the economy, and especially those older bank savers just trying to get by.

Whether or not the Fed's rate policy will change in the short term, its policy to reveal more about its internal decision-making process will affect your money in other ways. Check out MainStreet's 3 Consequences of Fed Plan for Interest Rate Transparency for more!

How to Get a Job in the App Industry

Seth Fiegerman — Thu, 09 Feb 2012 14:02:00 -0500

NEW YORK (MainStreet) — Looking for the next gold rush in job opportunities? There are apps for that.

The mobile and online applications industry created about 466,000 jobs in the U.S. between 2007 (the year apps were first introduced with the iPhone) and December 2011, according to a comprehensive report from technology advocacy group Technet. These include 311,000 jobs at companies developing apps as well as another 155,000 positions elsewhere created indirectly by the success of this industry.

To find this out, the researchers combed through the Conference Board’s database of “help wanted” listings for common words and phrases relevant to applications jobs like “Facebook API,” “Windows Phone” and, of course, “app.” Sure enough, the report finds that applications jobs have increased each year since 2007, with the number of job postings containing the word “app” increasing by 45% between 2010 and 2011 alone.

As the report concludes, “That’s rapid expansion by anyone’s standards.”

So how does one go about getting their foot in the door of the growing app industry? MainStreet went through dozens of current listings for app developers at major companies and found a few common themes.

You Need the Right Programming Experience

Not all app stores rely on the same programming language, which means those looking to break into the industry need to figure out which platform they’re interested in, and ultimately they will probably need to learn multiple coding systems. Those interested in Apple’s app store, for example, will need to be proficient in Objective C, while Android apps are typically written in Java. Many jobs now also require developers to have experience using HTML5, a mobile-friendly alternative to Adobe Flash, to produce Web pages that work on products like the iPhone and iPad.

Try Building an App of Your Own

Several of the job listings we saw for companies like Boxee and Etsy specifically called for applicants who had managed to get at least one application of their own into an app store. Unfortunately, if you’re just now trying to break into the industry, this can become a catch-22. So for the ambitious developers out there, your best bet may be to go it alone and try to build an app yourself. Apple’s app store is notoriously difficult to get into, but others like the Android app store aren’t as difficult as you might think. Not only will this allow you to say you have a published application, but it will show potential employers that you’re serious about the industry.

Where You Live Matters

There are certainly telecommuting opportunities in the app industry, but where you live can still make a difference. As Technet’s report shows, California alone is responsible for about one quarter of all app-related jobs, which should come as little surprise given this is the home of Silicon Valley. By city though, New York actually has more app-related jobs than San Francisco, and other cities like Seattle and Washington, D.C., aren’t too far behind. Not only does that mean there are more job opportunities in these areas, it also means there may be more chances to network with people who work in the industry and can help you get started.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Distressed Properties Erase Gains in Home Values

Jeff Brown — Thu, 09 Feb 2012 12:30:00 -0500

NEW YORK (MainStreet) – With home prices still falling in much of the country, many prospective buyers are understandably staying on the sidelines. But what if you really must move, perhaps for a new job? How do you avoid buying a money loser?

New data from housing monitor CoreLogic underscores the importance of avoiding neighborhoods with lots of “distressed” sales – short sales, foreclosures and sales of lender-owned properties, as those are responsible for a large part of plummeting home values.

CoreLogic says the average U.S. home value fell 4.7% in 2011, but when distressed sales are removed from the calculation, the drop was only 0.9%. The trend changed little at the end of the year, with all properties down 1.4% in December compared to November, while prices actually rose a tad, 0.2%, when distressed sales were excluded.

Sellers of distressed properties are often desperate and willing to take low prices. Lenders may slash prices on homes they own to put problems behind them and avoid maintenance and other expenses. So while some distressed homes can be bargains for savvy buyers, a cluster of distressed sales drags down prices for the whole area. Even if you buy a property that is not distressed, prices could fall further if more distressed properties are thrown on the local market.

Of course, it's hard to predict if and when that will happen. But distressed sales do tend to cluster in certain areas where prices rose especially high during the bubble, where unemployment is high, or where a large portion of homeowners owe lenders more than their homes are worth.

“While overall prices declined by almost 5% in 2011, non-distressed prices showed only a small decrease,” said Mark Fleming, CoreLogic’s chief economist. “Until distressed sales in the market recede, we will see continued downward pressure on prices.”

Local real estate agents should have a good handle on the number of distressed sales in any given neighborhood. Notices of short sales and foreclosures are also often appended to for-sale listings on Realtor.com and Zillow.com.

Aside from avoiding distressed-heavy neighborhoods, a buyer can reduce the risk of losing money on a new home by planning to stay in it for a long time. If you stay for 10, 15 or 20 years, you’ll probably have a good chance of coming out ahead even if prices continue to drift down just after you buy.

Of course, there is also the option of renting. In many parts of the country rents are rising because so many people either worry about the risks of buying or cannot get mortgages, driving demand above supply. But even if renting costs more on a month-to-month basis than buying, renting may be the better option if the risk of home-price declines is high. Use BankingMyWay’s Rent vs. Buy Calculator to assess your options.

The government is also taking steps to alleviate the burden of distressed properties on local housing markets, with a deal worth a reported $26 billion, but while it will help homeowners there are still doubts about the deal’s effects on home prices. Read more on MainStreet!

The Pitfalls of Debt Consolidation Loans

Jeanine Skowronski — Thu, 09 Feb 2012 11:30:49 -0500

NEW YORK (MainStreet) — Debt consolidation loans may seem like a great way to manage debt without taking the drastic step of declaring personal bankruptcy, but in many cases the too-good-to-be-true promise of significantly lower monthly payments are just that: an illusion.

New research from the National Endowment for Financial Education finds that these loans, which allow a cash-strapped consumer to restructure multiple debts for a low monthly payment, leave borrowers with a greater overall debt burden by stretching the payments out over longer periods.

For example, NEFE says, a five-year loan for $20,000 at a 10% interest rate would cost about $425 a month and total interest payments of $5,496 for the life of the loan. Extending the debt to 15 years in a consolidation loan would knock down the monthly payment to $215, but it would increase the total interest payments to $18,685 – a fact that is conveniently left out of most debt consolidation advertisements.

“Typical ads tell consumers that the monthly payments will be low and that their debt will be reduced,” researcher Paul Bloom said in an official statement. “And although the ads sometimes tout lower interest rates, most people who need such loans don’t qualify for the lower interest rate loans.”

NEFE says the loans also sometimes carry hidden fees (for items like credit checks or attorney services) and penalties (for late payments), which many ads do not disclose either. Some companies even charge a fee just for applying for such a loan.

The discrepancies, often masked by advertising and labels such as “credit counselor,” highlight the need for debt-ridden Americans to shop around before accepting a debt consolidation loan offer.

For additional steps you can take to ease your money woes, check out MainStreet’s roundup on eight steps to real debt consolidation.

How to Get Cookies When There's No Scout in Sight

Jason Notte — Thu, 09 Feb 2012 11:00:00 -0500

NEW YORK (MainStreet) -- Girl Scout cookie time is a sweet, faint ray of warm sunshine in an otherwise bleak winter for cubicle jockeys lucky enough to have a co-worker with a kid in the council or a suburban supermarket with a cookie-selling table set up each Saturday.

For the rest of us, it's a bit trickier to get a few boxes of thin mints. If you're in your 20s or early 30s and were weaned on the chocolate-encased peanut butter of Tagalongs or the caramel and coconut chewiness of doughnut-shaped Samoas, Girl Scout cookie season is a period of jittery withdrawal and flop sweats.

This may not have been a problem when Girl Scout cookies were introduced in 1917 and knowing a few friends in their early 20s with scout-aged children wasn't uncommon. It gets a bit tougher as post-collegians move into the cities their suburban parents fled years ago and put off parenthood until after the hand stamps from their favorite band's shows have faded and the last of the late-night diner runs have been made long ago. As a result, Girl Scouts of the USA have had their $760 million fundraising behemoth distanced from the late-night snacking, income-expending demographic most likely to go to town on a box of Do-Si-Dos after last call.

So what do you do when your office happy-hour contingent doesn't include a scout leader or your online start-up somehow doesn't have the salary or benefits to support a scout parent? Is there a way to stock up on cookies without eliciting shrieks of "stranger danger" or having complete strangers tell you how worthless cocktail nights with your friends are once you've started spawning?

Fortunately for those cookie-craving in-betweeners, the 100-year-old Girl Scouts of the USA is extremely tech savvy for its age. While the organization is loath to allow one of its most precious commodities to be sold online, as the funds go directly to individual councils and one of the bigger points of the exercise is for scouts to learn people skills, spokeswoman Michelle Tompkins says the Girl Scouts are trying to make it easier to find cookie sales online while keeping the revenue local.

The Girl Scouts have set up a cookie locator to help would-be customers find the nearest cookie booth. There's also a cookie-finding iPhone app in Apple's (Stock Quote: AAPL) App Store for those seeking scout snacks on the go. Once a cookie consumer has found one, however, the advantage shifts. While the office park and work-site crowds have to wait weeks for their order sheets to turn into cookies, parents with little clerks in training sell their baked wares without making the customer wait.

This approach has its pros and cons. If you're working in Midtown Manhattan, for example, there may not be a table set up in Herald Square -- but there's a booth just a quick PATH train ride away at the NJ Transit station in Hoboken, N.J. Sometimes you get lucky and find a booth in town, such as the one Chicagoans will get in March when the scouts set up at Dominick's supermarket on West Chicago Avenue. Other times the window's much smaller, as Boston residents discovered this month when a scout council set up one weekend at a city animal shelter but retreated to suburbs 27 miles away for the rest of the year.

That last scenario is perhaps the best example of why cookie seekers in the city should get on the case now. Cookie season is officially from October to May, but only 10% of all cookie sales come in the fall or early winter. Tompkins says 90% of all Girl Scout cookies are sold between January and April, after which it gets difficult to track down a box of Dulce de Leche cookies. Miss out and you'll have to wait for the scouts to get back from camp and situated at school and the temperatures to drop to a point where a chocolate-coated cookie isn't just a melty mess.

It gets even more complicated when you start to get picky about what your cookies are called. Girl Scout cookies are made by two bakers: Kellogg's (Stock Quote: K) subsidiary Little Brownie Bakers in Louisville, Ky., and George Weston Limited's ABC Bakers in Richmond, Va. While Little Brownie cookies still hold on to legacy names such as Samoas, Tagalongs, Trefoils and Do-Si-Dos, ABC is a bit more straightforward with its Caramel deLites, Peanut Butter Patties, Shortbread and Peanut Butter Sandwich cookies. It's up to each council to decide which baker to go with, so cookie lovers may want to check in with their local before bawling out a scout over perceived PC issues.

Morning Deals: Valentine’s Day Gifts You’ll Love

Matt Brownell — Thu, 09 Feb 2012 10:41:14 -0500

NEW YORK (MainStreet) – Groupon is offering a $40 credit at flower retailer FTD.com for just $20. The deal expires at 11:59 p.m. PST Saturday, and once you get the deal it can be used through April 11 (though if you miss that deadline you can still get a $20 credit toward the site). FTD offers same-day shipping.

As in past years, White Castle will (surprisingly) let you make a Valentine’s Day reservation for a candlelit dinner. When you do so, you’ll get a free dessert with your meal. Note that the Valentine’s Day dinner is only available at select locations listed on the White Castle Facebook page. You should also make sure your significant other has a good sense of humor before you try this one.

Daily deal site Saveology has a deal for $26 worth of personalized cake toppers from Cake Sugar Designs for $13. Note that cupcakes, shipping and tax are not included. There’s a limit of three vouchers per person, and the deal is good through 11:59 p.m. CST Wednesday.

Quiznos is giving away free cookies on Valentine’s Day when you bring in this printable coupon. No purchase is necessary, and there’s a limit of one coupon per person. Also note that some Quiznos locations are specifically listed as not participating.

This doesn’t have much to do with Valentine’s Day, but if you print out this coupon and go to Bruegger’s, you can get three bagels for free. The coupon is good today only, and expires at 2 p.m. There’s a limit of one coupon per person per visit.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Will the $26B Foreclosure Deal Hurt the Housing Market?

Zillow.com — Thu, 09 Feb 2012 09:16:01 -0500

NEW YORK (Zillow) - After months of high-stakes negotiations by state attorneys general for a multi-billion dollar settlement with banks over mortgage services abuses, a deal was finally announced Wednesday night.

In a country where homeowners face $700 billion in negative equity, the news is an opening salvo for one of the biggest drags on the U.S. economy. Settlement funds will be doled out under a complicated formula, but banks will be incentivized to help homeowners the most underwater.

The deal has the backing of about 40 states, including California and New York, where attorneys general in those large states have been pressing for bigger concessions from the banks and the ability to pursue further lawsuits in cases of abuse. While the settlement figure is $26 billion, the number could grow to about $39 billion in value for crisis-struck homeowners.

California’s inclusion in the deal pushes the settlement total to the anticipated $26 billion in relief. That number is in flux depending on the exact number of states that eventually sign on.

Under the settlement, top U.S. banks — Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial — have agreed to contribute, largely by cutting mortgage debt for homeowners whose properties are worth less than their mortgage amounts. Negotiations had been held up by deep-seated concern that the deal was too lenient toward banks.

“For the past 13 months we have been working for a resolution that brings real relief to the hardest-hit homeowners, is transparent about who benefits and will ensure accountability,” said California attorney general Kamala Harris said.

The deal struggled to the finish line as top watchdogs in some of the biggest and hardest hit states worked to ensure any settlement did not let loan institutions off the hook for further investigation.

On Feb. 3, New York AG Eric Schneiderman abruptly called off a press conference and filed suit against the Mortgage Electronic Registration System, a move that signaled how seriously state attorneys general are taking their role in remediating widespread pain brought to foreclosed homeowners. Robosigning on foreclosures was facilitated by what is widely criticized as a loan documentation system that went lax in order to save banks money in the loan-writing process.

By creating this bizarre and complex end-around of the traditional public recording system, banks achieved their primary goal — over 70 million mortgage loans, including millions of subprime loans, have been registered in the MERS system and the industry has saved more than $2 billion in recording fees,” according to the lawsuit filed by Schneiderman.

The lawsuit also claims that over the several years, “banks rapidly securitized and sold off millions of loans, often misrepresenting the quality and nature of the mortgages being transferred.”

Since taking office in 2011, the New York AG had insisted that any robosigning settlement with banks should not grant a legal release from separate claims over how they bundled and sold mortgages to investors.

In New York, where many of these securitized commodities were traded, the AG has fought to preserve the right for a more comprehensive investigation of mortgage-related abuse in order to extract a larger settlement once more of the facts are determined.

While individual homeowners will benefit from this settlement, it is unclear whether the action will move the national housing market to stabilization. The New York Times examined that question in reports.

Christopher J. Mayer, a housing expert at Columbia Business School, said the accord could give banks more certainty that they can clear their large backloads of seized homes, restoring the flow of those homes into the market. “It may be good for individual homeowners, but if you don’t do something to help the foreclosure process, it’s not going to help the housing market,” he said.
Mark Zandi, the chief economist for Moodys Analytics, said that while the settlement looked small compared with the scope of the problem, it was not necessary to erase all, or even most, of the nation’s negative equity to turn the market around. About a third of houses on the market now are distressed, or have been through foreclosure, he said, and reducing that percentage by just a small amount could be enough to put a floor under housing prices.

For additional perspective on the mortgage deal, take a look at these stories:

How Your Credit Card Can Help You Give Back

Jeanine Skowronski — Thu, 09 Feb 2012 09:00:00 -0500

NEW YORK (MainStreet) — Don’t have extra money to give to charity? Believe it or not, your credit card could help you with your philanthropic efforts.

Most issuers, including American Express (Stock Quote: AXP) and Discover (Stock Quote: DFS), allow their cardholders to donate their rewards points to partner organizations.

Capital One (Stock Quote: COF) actually has an entire website dedicated to helping cardholders schedule donations in either dollars or rewards points to one of 1.2 million charities. The issuer absorbs the transaction costs associated with the donation so that 100% of the funds make it to your charity of choice.

There are also specific credit cards that have charitable giving worked into their rewards program. The OneCause Visa (Stock Quote: V) Platinum card, for instance, contributes 1% of total purchases to a cardholder’s chosen cause, and you’ll also earn your organization a $20 bonus contribution the first time the card gets used.

Bank of America (Stock Quote: BAC) has a line of co-branded credit cards that give a percentage of the total purchases you make with the card, plus a donation at the account’s onset, to various charitable organizations, including the Special Olympics, the American Lung Association and Ronald McDonald House Charities.

Some credit cards inspire giving by offering extra rewards points back on charitable donations. U.S. Bank’s FlexPerks Visa Triples Rewards, for instance, lets cardholders earn triple FlexPoints on donations to many 501(c)(3) nonprofit organizations. Other issuers like Chase (Stock Quote: JPM) have incorporated charitable donation in the revolving 5% cash-back categories associated with some of their credit cards.

It’s important to note that some debit cards can aid you in your philanthropic efforts as well. Target (Stock Quote: TGT) will donate 1% of purchases made with its REDcard debit card to a K-12 school of the cardholder’s choosing, and Capital One partners with six different charities to offer co-branded debit cards that earn each organization 0.2% on signature-based transactions made by the cardholder. Capital One customers can also elect for a debit card that splits the earnings among all six charity partners.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

7 Reasons Why You’ll Always Need Cash

Greg Emerson — Thu, 09 Feb 2012 06:00:00 -0500

Despite the rise of online and mobile banking, there are plenty of reasons why cash will be with us forever.

Study: In Customer Service Battle, Big Banks Win

Matt Brownell — Thu, 09 Feb 2012 06:00:00 -0500

NEW YORK (MainStreet) – November was a big moment in the sun for credit unions. Put off by an onslaught of new checking account fees at big banks, and further fueled by populist anger towards Wall Street, thousands Americans committed to joining credit unions as part of the Bank Transfer Day movement. And they had good reason to make the switch: In addition to often being more fee-friendly than banks, credit unions tend to have much more favorable rates on deposits and loans, and members praise the institutions for their customer-friendly ways and community feel.

But it now appears that credit unions, for all their benefits, just aren’t as good as big banks at closing the deal with prospective customers.

Our sister site RateWatch teamed with IntelliShop, a mystery shopper service, to gauge how big banks (those with more than $10 billion in total assets), small banks and credit unions perform when it comes to wooing customers who express interest in opening an account. To conduct the study, IntelliShop sent its shoppers into 120 financial institutions across the country and had them report back on everything from parking availability to the attire and demeanor of the bank or credit union’s representative. What they found revealed a lot about the challenges that smaller institutions face in keeping up with the giants of the banking world.

Who Made the Best First Impression?

The differences become apparent as soon as one walks in the door. Mystery shoppers entering credit unions were immediately greeted by a customer service representative a little more than half the time (53%). By contrast, visitors to large banks were immediately greeted 76% of the time. Smaller banks fell in the middle, with mystery shoppers getting an immediate greeting 63% of the time. It seems that the larger the institution, the more likely it is for a prospective customer to get immediate service.

“It seemed as if they were not looking for new customers,” recounted one mystery shopper after entering a credit union in Michigan. “I actually really wanted to open an account here, but now I am thinking that it is not a good idea. The reception I received was lackluster at best and getting information from the representative was like pulling teeth.”

Did They Ask the Right Questions?

Once prospective customers actually sat down with a representative, the big banks once again showed a more polished approach. The mystery shoppers were given a list of 11 crucial questions they might expect representatives to ask in order to better understand the customer’s needs, including “do you require online banking?” and “how many checks do you write per month?” The large banks were much more consistent than the smaller institutions at asking the right questions to determine a prospective customer’s needs.

For instance, just 20% of the representatives at credit unions thought to ask shoppers whether they wanted a business or personal checking account, compared with half of the representatives at big banks. Likewise, just 20% of the credit union representatives bothered to ask whether the customer would be needing online banking services, compared with 64% of representatives at online banks. And amazingly, 23% of the credit union representatives and 29% of the small bank representatives failed to ask any of the 11 questions on the list, compared with just 2% of representatives at large banks.

“I’m not surprised that we’re hearing that,” says Howard Seibel, a customer acquisition expert and managing director of marketing consultancy Wharton Strategic Services. “I’m sure if you looked at Citibank’s or Bank of America’s training department, you’d find they’ve got more people working there than in an entire credit union.”

He also adds that big banks are increasingly offering incentives to representative who open new accounts, which explains why so many of the mystery shoppers describe encountering enthusiastic representatives at big banks – it’s in these representatives’ best interest to sell you on a new account.

Big Banks Best at Building Customer Confidence

Given how drastically the customers’ first impressions differ between credit unions and big banks, it’s not surprising that prospective customers were more likely to lean toward joining the big bank: 42% of mystery shoppers in the survey left the big banks feeling “confident that this bank would be the right choice,” compared to just 30% who said the same of the credit unions and 22% at the small banks.

As is often the case, first impressions make a big difference, and if customer service is the most important factor for you, then that’s certainly an understandable choice. But if factors like superior fees and rates are what’s driving you to consider switching to a new bank, it might be beneficial to look past your first impression and consider how the competing institutions stack up where it counts.

“The representative… was confident and knowledgeable,” reported one mystery shopper after a visit to a Chase bank in Texas. “Based on my positive experience with the representative, I may consider opening an account at this bank. However, my reservations with joining this bank stem from it being a national bank that is not competitive with their interest rates.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Get It for Less: Smartphones

Matt Brownell — Wed, 08 Feb 2012 17:22:37 -0500

Editor’s Note: This piece is part of an ongoing series called “Get It for Less” that will appear every week on MainStreet, so check back for more shopping tips on your favorite products.

NEW YORK (MainStreet) – Most high-quality smartphones cost at least $200 when they first come out (and when paired with a new two-year service contract), but with a few notable exceptions, there’s no reason to ever pay that much for a new phone.

Louis Ramirez is a senior features writer for DealNews, a money-saving website that frequently gathers deals on new phones, and he shared his expertise with us to pass along the best strategies for finding a good deal on a new smartphone.

Wait a Few Weeks

It used to be that you needed to wait at least a few months before you saw any kind of deal on a new smartphone. But with the market flooded by so many new Android phones on a weekly basis, the timeframe for price reductions is much shorter than it used to be.

“The best way to save on a smartphone is not to buy it the day it’s released,” Ramirez says. “Now there’s so many smartphones out there that the market is saturated, and you begin to see deals a week to two weeks out.”

As an example, he points to the Motorola Droid Razr, which came out of the gate in November for $300 but dropped to $111 on Amazon after less than a week. An updated version of the phone, the Droid Razr Maxx, went on sale just a couple of weeks ago, and Verizon will offer a buy one, get one free deal on the new model starting Friday.

If you’re in the market for a new Android phone, don’t pre-order it and don’t buy it during the first couple of weeks it’s on sale. Chances are, your patience will be rewarded very quickly.

Buy Refurbished

Waiting a few weeks may work for Android phones, but iPhones are a different beast. New iPhones come out generally only once a year, and the price on the newest models stay fixed until the next one comes out.

There’s one very good way to bypass this, though: Buy a refurbished phone. Ramirez says that he’s had good luck with a refurbished iPhone, calling it “just like new.” And it will certainly save you a bit of money: AT&T currently sells a refurbished 32 GB iPhone 4S for $249.99 with a new contract – a $50 discount on the price for a brand new one. Discounts for refurbished phones apply to other smartphone brands as well, according to Ramirez.

Buy Online

Ramirez says that he generally recommends checking online retailers before bricks-and-mortar stores to get the best price on a new phone. He points to Wirefly.com and Amazon.com as two that consistently offer great deals on phones – indeed, the latter made waves in November when it offered several phones for just a penny each. He says that if you do feel the need to shop in a physical store, carrier stores (for instance, a Verizon store) tend to offer better deals. (Once again, Apple is an exception to that rule: While you won’t find refurbished iPhones at carrier stores, the prices on new iPhones are identical to those on the online Apple store.)

As a final tip, Ramirez recommends checking out BlackBerry to take advantage of the floundering company’s desperation.

“If you’re not biased on [operating system], consider BlackBerry,” he says. “Everyone knows that BlackBerry is hurting, so you’re going to see some aggressive deals there.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Newest Job Openings Data Isn’t As Good As It Seems

Seth Fiegerman — Wed, 08 Feb 2012 16:02:00 -0500

NEW YORK (MainStreet) — There was one job opening for every 3.9 unemployed people looking for work in December, the most favorable ratio of unemployed job hunters to job openings in nearly three years, according to data released this week from the Labor Department.

While this represents a significant improvement in job opportunities compared to the worst of the recession, it only tells part of the story. As the chart above shows, if you factor in all the unemployed people who are willing and able to work, but have simply given up looking for jobs, that ratio worsens to one job posting for every seven people out of work.

This may not seem like a major issue at the moment, but some leading economists predict that many of those who stopped looking for work will resume the job hunt in the coming months if the labor market continues to improve, adding much more competition to the market. Unless the number of postings increases significantly, job hunters may quickly realize there are not nearly enough positions to go around.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

The 2012 Election & Your Credit Cards

Credit.com — Wed, 08 Feb 2012 14:30:00 -0500

By Scott Bilker

It has long been said that people vote with their wallets in presidential elections. The idea is that people will vote for the candidate who they believe has economic policies that will benefit them. Whether it is lowering their taxes, giving their business a subsidy or increasing funding for a federal program they use, voters tend to vote for the candidate who they think will be best for their bank account.

This idea is what shaped the messaging behind Bill Clinton’s 1992 campaign (It’s the Economy, Stupid) and Ronald Reagan’s 1980 campaign (Are you better off than you were four years ago?).

But for voters who are already in hock to banks and credit companies, they may want to be more precise with their vote in this year’s election. What if someone wants to vote with their wallet, specifically the credit cards in their wallet, in 2012?

[Related article: 7 Reasons to Hate & Love Your Credit Card]

Here is a scorecard for you to determine what the presidential election will mean for you and your credit cards:

In political campaigns, credit cards are usually talked about as a piece of a large financial regulation or reform. Candidates never zero in on credit cards and propose a law or an action that would address the problem of credit card debt in isolation. It is always part of some larger omnibus package that the candidates are either “for” or “against” in its entirety. 2012 will be no exception to this rule.

At issue in the 2012 election will be two pieces of legislation that affect your credit cards: the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Credit CARD Act of 2009.

A few months before President Obama signed the CARD Act into law, I appeared on CNN to talk about these changes and how credit card banks can still get around them. You can see that video here.

[Related Article: The Best Balance Transfer Credit Card in America]

The contrast is pretty clear. President Obama enacted both of these laws with the help of Democratic majorities in the House and Senate and he will proudly defend them in the upcoming campaign. The Republican candidates, specifically Mitt Romney and Newt Gingrich, oppose both of the laws and have vowed to repeal them if they are elected president.

President Obama and the Democrats argue that these new laws protect consumers from exploitation and the deceptive practices used by the credit card companies. They also claim the bills improve transparency and accountability in the credit card industry with new requirements for explaining their terms and conditions clearly. These provisions, along with increased oversight powers given to Congress, the Department of Justice and the newly-created Consumer Financial Protection Bureau, would seem to protect the average voting credit card customer.

As President Obama said in his State of the Union address last month:

"If you’re a big bank or financial institution, you are no longer allowed to make risky bets with your customers’ deposits. You’re required to write out a ‘living will’ that details exactly how you’ll pay the bills if you fail—because the rest of us aren’t bailing you out ever again. And if you’re a mortgage lender or a payday lender or a credit card company, the days of signing people up for products they can’t afford with confusing forms and deceptive practices are over.”

[Related Article: How to Avoid Online Tracking. (Hint: You Can’t.)]

Not so fast. Republicans argue that while the intention of protecting customers is noble, these bills take the wrong approach. In September of last year, Mitt Romney lambasted the Credit CARD Act saying it “produced federal restrictions on credit card companies that have already led to higher interest rates, higher annual fees, and lower credit limits, especially for middle-class borrowers.”

To be fair, counter to Romney’s claims, several independent analyses have shown that the CARD Act has not led to higher interest rates and fees and in fact, according to the Federal Reserve, interest rates have dropped since February 2010 when the CARD Act went into effect. But most financial observers would concede that the banks and credit companies have been trying to find ways around the new regulations.

Romney is also highly critical of Dodd-Frank saying it “represents a massive overreach of the federal government into private markets…instead of streamlining and modernizing our financial infrastructure, Dodd-Frank layers mountains of incremental rules and constraints on the system that allocates capital—the lifeblood of our economy—to businesses of all sizes.”

While the new Consumer Financial Protection Bureau (CFPB) created by Dodd Frank will make life more difficult for credit companies, their powerful lobbyists have already begun rewriting the new rules.

President Obama’s claim that his administration ended the days of those “confusing forms” and “deceptive practices” of the credit card companies also warrants further scrutiny. In fact, a sizeable share of the complaints about credit cards submitted to the Consumer Financial Protection Bureau between mid-July and mid-October of last year involved issues that were supposedly addressed by the CARD Act. This development raises the question: If the CARD Act rectified these problems, then why is the CFPB still getting complaints about them?

While the new Consumer Financial Protection Bureau (CFPB) created by Dodd-Frank will make life more difficult for credit companies, their powerful lobbyists have already begun rewriting the new rules.

Romney and the Republicans are right in this sense. If you are a customer with good credit—you don’t miss a payment and always pay on time, you may have to pay for measures that protect people with bad credit whose late payments have exposed them to high credit card fees and interest rates. Credit card companies, like all businesses, pass along the cost of complying with new regulations to their customers. Whether the Credit CARD Act and Dodd-Frank restrictions on credit card companies are “good” for you depends heavily on what kind of customer you are.

If you want to vote with your credit card this November, you must first ask and answer one question for yourself: Do I support the Credit CARD Act and Dodd-Frank? If the answer is yes, then your candidate would appear to be President Obama. But if the answer is no, then you will most likely vote for the Republican.

These are difficult and complicated regulatory problems with difficult and complicated solutions. Whoever wins the election in November will have their work cut out for them in improving government oversight of credit cards. You can take that to the bank.

Scott Bilker is the founder of DebtSmart.com and author of the best-selling books Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be More Credit Card and Debt Smart.

Credit.com provides straightforward news & advice, tools, and products to help consumers make smarter financial decisions. Credit.com was established in 1995 with the goal of helping consumers with any credit standing to establish, rebuild, enhance and effectively use credit. Our industry experts create clear paths for consumers looking to improve their finances.

How to Adjust Your Budget If the Payroll Tax Cut Isn’t Extended

Seth Fiegerman — Wed, 08 Feb 2012 14:21:00 -0500

NEW YORK (MainStreet) — The payroll tax cut extension is set to expire at the end of this month unless Congress can agree on a plan to renew it for the remainder of the year – something that is looking increasingly unlikely.

While the Obama administration and many in Congress agree that the tax cut is worth the $100 billion or more that it would cost the government to extend it, legislators are split on how to fund it. Unfortunately, without an extension, many Americans may soon be struggling with their monthly budgets.

Just how much a person saves with the tax cut depends on one’s income, but the typical family earning $50,000 a year currently pockets an extra $80 each month from money that would otherwise go toward Social Security and Medicare taxes. As one woman noted in December prior to the latest extension, that extra money is “the difference between having food on the table the next week and not.”

If Congress fails to approve the payroll tax cut extension, here are a few expenses you can cut out of your budget to adjust to what will essentially feel like a pay cut in your salary this year.

Rethink Your Cable TV

The average monthly cable bill has more than tripled in the past 10 years, increasing from $40 in 2001 to $128 in 2011. Even in the best of times, that’s a lot of money to fork over each month, especially when you consider the incredible selection of TV shows available online through sites like Netflix and Amazon, whose combined cost would be about $30 more for an entire year than what Americans pay on average for a single month of cable access.

Bring Your Own Lunch to Work

It might sound like a small change, but one recent survey found that workers spend $2,000 a year buying $5-$10 lunches every day at work. A better option is to prepare your own meals at home the night before, which should cut down on much of the cost. If it feels like a big lifestyle change, try making the switch for one or two days a week and work your way up to doing it every day.

Cut Out Your Vices

Even if Congress does approve the payroll tax cut, it’s always a good idea to cut out (or cut down on) some of your vices, but this is especially true when money is tight. As MainStreet has reported before, the cost of cigarettes and alcohol adds up quickly. If you spend just $15 a week on drinks (which in New York barely gets you two beers) you’ll end up spending nearly $800 for the year. So if you really need to cut costs, either give up the vice entirely or in the case of something like alcohol, try mixing your own drinks at home on the cheap.

For more expenses that you should rethink this year, check out MainStreet’s roundup of 12 things to stop paying for in 2012.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Banks Prefer Short Sales to Foreclosures, Even If It Costs Them

Brian O'Connell — Wed, 08 Feb 2012 14:09:12 -0500

NEW YORK (MainStreet) – Banks don't mind using the stick to get delinquent homeowners out of their houses, but that doesn’t mean they don’t use the carrot, too. One example: Increasingly, banks are offering struggling homeowners wads of cash to allow their homes to go into “short sale.”

Bloomberg News reports that banks are offering up to $35,000 to late-paying homeowners to enter into a short sale and thereby avoid the foreclosure process that has held the housing market down for years.

Short sales are home sales where both the bank and the mortgage holder to agree to sell the home for less than it’s worth. Short sale volumes tripled in 2009 and 2010, according to housing monitor CoreLogic, and that trend continued in 2011.

With short sales still very much active in the housing market, why would banks and mortgage lenders have to pay homeowners to kick-start a short sale? After all, banks historically have been slow to resort to a short sale, often holding up permissions in the hope that the homeowner will get his or her financial act together, or betting they can cut a better deal on a home if it goes into foreclosure rather than into a short sale.

But as Bloomberg points out, banks have ultimately decided that short sales are faster and cleaner than foreclosures, allowing them to dispose of “bad debts” on their accounting ledgers – a good thing for a bank’s bottom line.

A big part of the reason for that shift in mindset is that foreclosures are taking longer than ever. Data from LPS Applied Analytics notes that in 2007, the average foreclosure took 253 days to close, and today that number is 674 days.

Given the long time that foreclosures take, one can understand the need for banks to “nudge” delinquent homeowners to engage in short sales with cash offers, as well as pre-approve short sale deals and agree to write-off a portion of the mortgage debt owed by the homeowner just to get a short sale done.

All in all, it’s just cheaper for banks to go the short sale route than to pursue a foreclosure. According to Moody’s Investor Services, losses stemming from foreclosures are 15% higher than for short sales, which is why short sales account for 33% of all distressed property deals in 2011, compared to 24% in 2010.

In the end, the move to offer homeowners financial incentives to agree to a short sale is all about business. In one fell swoop, banks and lenders can get rid of a toxic line on their balance sheets and bestow some goodwill on homeowners who may get back on their feet some day and once again become a mortgage customer.

That sounds like a good deal for everyone involved – banks, homeowners and the housing market as a whole, which wants more “sold” signs on the front lawns of American homes than “foreclosure” signs.

If you're eagerly awaiting a recovery in the housing market, this year might be the one when things turn around. Check out MainStreet's look at 5 Housing Booms Coming in 2012 for more!

8 Sexy Tips for Valentine’s Day Savings

MoneyTalksNews — Wed, 08 Feb 2012 14:00:48 -0500

By Brandon Ballenger

It’s that time of year again – love is in the air, and so is spending.

Last year, the average person spent an estimated $116 on Valentine’s Day merchandise for a holiday total of $15.7 billion, according to the National Retail Federation.

If your heart’s in the right place but your bank account isn’t, not to worry. There are a lot of ways to save for V-Day and, as is true with almost anything, creativity saves cash. Here are several ideas to spend less this Valentine’s Day…

Skip chocolates. Rather than buying the expensive stuff, grab a Valentine’s-themed gift bag (or a generic pink or red one) and add some cheaper candies like those little hearts that say “I love you.” Or skip candy altogether for the next idea…
Bake. Especially if you don’t normally spend a lot of time in the kitchen, a batch of cookies or brownies can be a touching gift. Here’s a bunch of Valentine’s Day cookie recipes, but you don’t need to get fancy unless you want to – you can get the mix and heart-shaped cookie cutters (and sprinkles or icing if you want to go nuts) from the grocery store for a few bucks, and all you’ll need to add is simple ingredients like eggs and milk. Including the trip to the grocery store, it won’t take more than an hour or two.
Flowers. While you’re at the supermarket, check out their floral section – as long as they keep their flowers refrigerated, they can be just as good as an independent florist’s and are probably cheaper. Refrigerated flowers last much longer than what you’ll get on the side of the road or online. And don’t grab the prettiest ones – grab the ones that are still budding. They’re just about to bloom, which is romantic, and they last the longest.
Plants. Instead of paying a premium for dying flowers, you could buy a nice potted plant and grow your own throughout the year. Or you can get seeds, and promise to plant a little garden with your lover.
Dinner in. We hate to send you back to the kitchen, but the cheapest and most romantic meal is homemade. If you’re not an expert chef, stick to something simple to make and cheat with a pre-made dessert and something nice to drink. Prosecco can be a less expensive alternative to champagne, and then there’s boxed wine. It’s affordable, looks just as good once it’s in a decanter, and research suggests there’s not much correlation between price and quality anyway. Find a nice spot to eat – you can do it picnic-style in the home as Stacy suggested, or even outside if you have space and it’s not too chilly. Dim the lights and use some candles to add to the mood.
Dinner out. If you insist on eating out, celebrate early – V-Day falls on a Tuesday this year, which is a great excuse to celebrate on the weekend. You’re less likely to need a reservation that way and won’t pay the holiday tax of jacked-up prices. If you want to go somewhere upscale and still save, head out for an appetizer and beverage, but have the main course at home.
Jewelry. Unlike wine, jewelry’s an area where you probably don’t want to risk faking it. Check out our story on taking the stress out of buying jewelry so you know how to evaluate gold and diamonds. Get the nicest thing you can, but don’t blow your budget – there’s always next year to save and get something better.
Other gifts. If you can’t afford jewelry, period, here’s an idea. Along with a nice card, give a handwritten promise to provide some kind of service to your loved one. Pick some chores you normally avoid, and take them on without complaint. Or, how about a scrapbook? Prints are cheap, and you don’t even have to do all the work – assembling a collection of your favorite memories together can be a romantic event in itself.

One last idea: take advantage of pre-Valentine’s Day sales that are going on now, but won’t be next week. See Karla’s Today’s Deals column for examples.

Romance got you thinking about spending a lifetime together? Check out 25 Top Tips to Save on Weddings and 10 Ways Getting Married Will Make You Richer.

10 Totally Vulnerable Company Towns

Joe Mont — Wed, 08 Feb 2012 13:30:00 -0500

BOSTON (MainStreet) -- "You load 16 tons, what do you get/Another day older and deeper in debt/Saint Peter don't you call me 'cause I can't go/I owe my soul to the company store." -- "Sixteen Tons" by Tennessee Ernie Ford.

From the early days of railroads, timber and mining, companies did more than just bolster local economies -- they created them.

In modern times, the idea of the "company town," a village owned and operated by the boss, may seem antiquated. They still exist in various forms, however, and their fates fluctuate with the fortunes of their benefactors.

There are also cities and towns, as illustrated by the Detroit area, where overreliance on a single industry has proved costly and heartbreaking.

We took a look at 10 cities and towns that either are or could become at risk because of their dependency on a single company or specific industry.

Scotia, Calif.

You know a company town has hit rough times when it is owned by a hedge fund.

In its better days, Scotia -- near Eureka -- was carved out of land owned by Pacific Lumber. It was incorporated in 1863.

Over the years, times were good. It weathered the Great Depression better than most communities and even had a bit of a housing boom from the 1920s to 1950s. A school, churches, shopping center, hotel and post office served its residents.

Things went bad in 2006 when the company began seeking buyers for the residential and commercial property it owned. The following year, the once mighty timber company filed for bankruptcy. Marathon Asset Management, a New York-based hedge fund that was Pacific Lumber's largest creditor, was awarded ownership of the town during bankruptcy proceedings.

To its credit, the fund continued to invest in community amenities even as its population dropped. At the time of the 2010 census, the once thriving small town had dwindled to about 850 residents in 265 households.

Last summer, however, residents faced an ultimatum. Marathon gave them the option of either incorporating as an independent town or face being sold off.

In September, residents voted for independence. Time will tell how its residents adjust to weaning off corporate benefactors for the first time in their town's history.

Las Vegas

The very definition of a single-industry town can be found among the glitter and neon of Las Vegas.

The epicenter of American casinos, however, has a gambling problem. As in: Not enough people are doing it.

In fiscal 2011, the 22 casinos in the Las Vegas Strip area produced gaming revenue of more than $72 million, according to UNLV's Center for Gaming Research. But it's been tough sledding for the glitzy gambling palaces. When it ditched promotional offers and most comps last year, Las Vegas Sands (Stock Quote: LVS), owner of the Venetian and Palazzo, saw its casino revenue plummet 47%.

As Caesars prepares for an IPO, its attraction to investors may prove to have more to do with its more profitable online enterprises rather than its U.S. locations.

When investors are placing bets on other big gaming companies, their hope typically focuses on profitable locations overseas (in Macau, for example), rather than slumping properties in the U.S.

According to state statistics, Clark County -- home to Sin City -- had 148 casinos grossing $1 million or more in gaming revenue during FY 2011. They generated a combined net loss of $3.9 billion.

Las Vegas officials and workers need to hope for considerably more luck in the years ahead, lest the industry they have gone all-in with goes bust.

Wilmington, Ohio

In November 2008, shipping giant DHL announced that it would cut nearly 9,500 jobs as its parent company sent its U.S. air-cargo service to UPS (Stock Quote: UPS).

The move was a shock to the system for Wilmington, a city of 12,500 residents, many of whose jobs depended -- directly or indirectly -- on hosting a DHL hub. Before that company came to town in 2003, Airborne Express had created 8,000 jobs when it took over that same plot of land, an abandoned Air Force base, for use as a shipping hub.

The DHL layoffs shed about 6,000 workers. Additional layoffs in 2008 bled another 3,000 jobs from the Wilmington economy.

Today, the town still struggles, hoping to attract businesses through a jobs initiative offering financial incentives to companies in the "green" sector.

Redmond, Wash.

Perhaps it's a bit disingenuous to include Redmond on a list of at-risk "company towns." It's doubtful technology giant Microsoft (Stock Quote: MSFT) is going anywhere anytime soon.

But just as the timber and railroad towns of decades past once seemed perpetually thriving, will Microsoft continue to dominate that local economy a decade from now? Fifty years from now? A century from now?

According to the Redmond Chamber of Commerce, Microsoft is the largest employer (25,000 jobs) for the city of nearly 54,000 people. As goes Microsoft, so goes Redmond.

The Chamber of Commerce surely understands that risk, or at least the perception of it. Its Web site counters that the city also has thriving companies in biotechnology, medical devices, telecommunications and aerospace. Beyond Microsoft, high-profile employers include AT&T (Stock Quote: T), Honeywell (Stock Quote: HON) and Genie Industries, which employs more than 3,000 people.

Still, when looking at Microsoft's dominant role in the Redmond economy and considering the sprawling amenity-filled megaplexes in California that companies such as Google (Stock Quote: GOOG) and Facebook call home, one might wonder whether these high-tech headquarters are merely a modern variation of the company town.

Newton, Iowa

Commercials paint the iconic "Maytag repairman" as a lonely guy. It may have something to do with his move out of the friendly town of Newton, Iowa.

For decades, the appliance maker was the town's largest employer and the line between company and community was blurred. A proud civic boast: The first mechanical washing machine was built there by company founder Fred L. Maytag. At peak, the company employed more than 5,000 Newton residents.

In 2006, however, Maytag was bought by Whirlpool (Stock Quote: WHR). Almost immediately there were cutbacks and downsizing. Within a year, a decision was made to shutter the manufacturing plant and corporate offices, eliminating 1,800 job from the small town of 15,000.

Despite the occasional glimmer of hope -- a telecom company and wind turbine maker are among the new companies that have set up shop -- Newton is still struggling to move beyond the company that built it up.

Rochester, N.Y.

Last month, we looked at 10 Cities Poised For Greatness In 2012. Among those cities -- and a controversial pick based on reader feedback -- was Rochester. The city earned this optimism in part for having a resilient economy and relatively stable housing market.

There are plenty of folks hoping they can believe that prognostication, especially as Kodak (Stock Quote: EK), the camera company that has long propped up the local economy, looks to soon be a thing of the past.

Kodak filed for bankruptcy Jan. 19, and the impact of its reorganization remains to be seen.

"The most fundamental fact of this announcement is the physical impact as much as the economical impact," Rochester Mayor Tom Richards told that city's WHEC-TV.

A part of the city since around 1880, the company has at times been Rochester's largest employer (62,000 jobs at peak), but the writing has been on the wall for years -- first as digital cameras replaced film, and as Kodak lost market share in the crowded point-and-shoot space.

From a philanthropic standpoint, the community may also take a hit.

"It is likely that we will have to make difficult choices about our philanthropic investments and activities," Kodak's website cautions.

Perhaps a bit more reassuring is this other corporate statement:

"Kodak will still be headquartered in Rochester. This is our hometown and our largest cornerstone in the U.S. and worldwide. We are proud of our long-standing history in Rochester, and our objective is to emerge as an ongoing business enterprise that is assured of long-term viability and so better able to be a vibrant member of this community and all communities of which we are a part."

Huntsville, Ala.

Should Newt Gingrich be eleted president, and make good on his promise to build a moon colony, the people of Huntsville may be among the happiest.

Government cutbacks to the military and NASA have meant tough times for a town whose residents rely on the aerospace industry.

The cancellation of the Constellation rocket program meant $1 billion in lost contracts and hundreds of layoffs by companies counting on them. Roughly 500 jobs have been shed because of budget cuts at NASA's Marshall Space Flight Center.

Last March, another 130 jobs were lost when Boeing (Stock Quote: BA) was caught in the crossfire of federal budget cuts to a missile defense program it was working on.

In the 1970s, Huntsville's local economy was nearly ruined when NASA canceled the Apollo space program. The eventual restoration of NASA programs such as the Space Shuttle brought back money and jobs. But with NASA and military cuts almost certain in the years ahead amid a growing federal defecit, it must feel like deja vu for residents.

Elkhart, Ind.

Shrinking disposable income and with high fuel costs have been bad news indeed for the companies that make motor homes and recreational vehicles.

The epicenter of that pain was Elkhart, a town that proudly proclaims itself the "RV Capital of the World" and is home to the RV/MH Hall of Fame, Museum and Library.

In 2008, as the recession was taking hold, this industry helped keep unemployment at bay at just over 4%. Within a year, that rate soared to 10%, then 13% and up to 18%. At its worse, nearly 20% of the town was unemployed, many losing their jobs as suddenly as the market for the vehicles they made crashed. Nearly 500 companies in the town were forced to enact layoffs.

An uptick in RV sales has helped a little, and unemployment has dropped to just over 11%. A new idea, floated by auto industry commentators, is promoting the town as an ideal place for electric car manufacturing. Time will tell if that idea, or other novel ways to leverage its skilled workforce, will take hold.

Alcoa, Tenn.

You know a town is tied to its top employer when its name decorates the mucipal flag.

Kohler, Wis., is home to the plumbing giant of the same name. Hershey, Pa., is known for its many bars -- of the chocholate variety. Overseas, the Russian community of Gar was "bought" for $150,000 in 2010 and renamed after the Web site TorrentReactor.

Alcoa, Tenn., has a similar distinction, taking its name from the company and the massive aluminum smelting plant it runs there.

Being dependent on an employer the way Alcoa (Stock Quote: AA) is means it benefits when the company does well, suffers when it doesn't.

In 2009, company officials announced a layoff of 13,500 (13%) of its global workforce, as well as 1,700 contract positions. That meant closing a town plant and shedding roughly 450 local jobs.

As tied as it is to its namesake's success, this is one of the few places where commodity futures have a direct impact on quality of life.

New Orleans

New Orleans is a classic American city, but one perhaps overly dependent on tourism to grease its economic engine.

That became sadly apparent after the disastrous double whammy of Hurricane Katrina in 2005 and the BP (Stock Quote: BP) oil spill.

After Katrina, there was a full-court press to rebuild and remarket the city, a task made a little easier by the fact most of its famous French Quarter was spared from the most horrendous storm damage. More than $742 million was spent to repair and upgrade local hotels, the Superdome and the Ernest N. Morial Convention Center. By 2010 tourism was again on the rise, approaching 8 million visitors, more than twice the number after the hurricane.

Then the Deepwater Horizon oil rig exploded, flooding the Gulf of Mexico with poisonous sludge, ravaging beaches, killing wildlife and shutting the local seafood industry.

Tourism in Louisiana, as a whole, generates $8.3 billion in annual spending and employs one out of every 12 people in the state. For New Orleans, a focal point of that business, the oil spill had effects that persist.

A recent report by Louisiana's Department of Culture, Recreation and Tourism does at least offer good news: Business travel is expected to make up for the some of the loss of leisure travel by 2013. Nevertheless, the tourism industry is still on track to take a $295 million hit.

How to Find a Good Credit Union

Jeanine Skowronski — Wed, 08 Feb 2012 12:47:32 -0500

NEW YORK (MainStreet) — Credit unions continue to remain a popular choice among Americans following the Bank Transfer Day movement, which encouraged customers of big banks to switch their accounts to smaller financial institutions. But while current credit union customers attest to lower fees, better interest rates and quality customer service, other prospective members may be refraining from making the switch because of the legwork involved.

Fortunately, there are several websites that make it much easier to find a credit union in your area that you are eligible to join. Here are a few of our favorites.

CULookup.com

This locator associated with the National Association of Federal Credit Unions allows users to search for credit unions by plugging in their address or existing affiliations or by searching for a specific credit union by name. Basic eligibility requirements are provided and you can request directions to the credit unions you are interested in.

The website also has a feature that lets users compare the rates between credit unions and banks in their state on various banking products (loans, mortgages, credit cards, etc.), and provides personal finance calculators to help prospective members learn more about mortgage rates, auto loans or retirement options.

aSmarterChoice.org

This website, affiliated with the Credit Union National Association, allows prospective credit union members to plug in their address to generate a list of credit unions in their area. You can also search for a credit union by name or an affiliation you may already have. Basic membership eligibility requirements and contact information is provided, and users can also send each credit union an email directly from the website if they need more details.

MyCreditUnion.gov

The National Credit Union Administration’s locator allows you to search by city, state or ZIP code and provides some basic information on whether ATMs and drive-through services are provided. Eligibility requirements are not always clear, but you are provided with contact information for each credit union in your search results. You can request directions to the ones you are interested in, and there are also personal finance calculators on this site.
CreditCardConnection.org

Prospective credit union members can also access the NCUA’s locator from this website, which provides detailed information on the credit cards being offered by local credit unions. The site makes it easier to compare and contrast credit union credit cards by annual percentage rates, rewards programs and the fees associated with the card. Links to all the credit unions evaluated on the site are included so users can get more information on a product they may be interested in.

What are some of the better credit cards being offered by large credit unions in the U.S.? Find out in this MainStreet roundup.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

The Best Maternity Leave Policies in the World

LearnVest — Wed, 08 Feb 2012 12:00:40 -0500

by Cait Flanders for LearnVest

For more about the maternity leave policies in the U.S. and abroad, visit LearnVest.com

Maternity leave is a hot topic with us.

The short, unpaid leaves that most mothers are forced to take when they have a baby is one of the main factors leading to America’s ranking as 31 out of 43 developed countries in terms of being a good place to have a baby (we talked about that here).

That, and the fact that the U.S. is one of the few developed countries that does not have a national policy on maternity leave.

Because of this, Working Mother is trying to make a case for paid maternity leave to be mandated in the U.S.

Now, we aren’t in the business of feeling jealous over what others have. However, after pulling data from the 2011 State of the World’s Mothers report, and piecing that together with the maternity leave policies from the top 10 countries, it’s easy to feel a little green. From receiving up to 100% of their wages to getting as much as 480 days of parental leave, check out what the rest of the world is offering moms. (Countries are ranked based on their maternity leave policies and are not in the same order as presented in the above report.)

Denmark
Maternity Pay: 100%
Duration: 18 weeks

Paternity Pay: 100%
Duration: 2 weeks

Parental Leave: 100%
Pay: 32 weeks *
*The leave period may be extended if the worker returns to work part-time, and the payment is then spread over the longer period. In certain sectors, fathers are entitled to additional non-transferable leave.

France
Maternity Pay: 100%
Duration: 16 Weeks

Paternity Pay: 100%
Duration: 2 Weeks

Parental Leave: Variable*
Duration: 3 years
*Entitled to leave or to work part time until the child is 3 years old. Varying flat-rate payments depending on size of family and leave circumstances.

Netherlands
Maternity Pay: 100%
Duration: 16 weeks

Paternity Pay: 100%
Duration: 2 days

Belgium
Maternity Pay: 75%*
Duration: 15 weeks
*82% for first 30 days, then 75%

Paternity Pay: 100%**
Duration: 10 days
**100% for three days, then 82%

Parental Leave: Fixed amount ***
Duration: 12 weeks ****
***Approx. EUR 653 per month net of taxes
****Was in the process of being extended to four

New Zealand
Maternity Pay: 100%
Duration: 14 weeks

Paternity Pay: 100%*
Duration: 1-2 weeks
*Paid if the partner transfers the statutory entitlement after taking less than 14 weeks of maternity leave.

See the other five countries with Swoonworthy Maternity Leave Policies at LearnVest.com!

More From LearnVest

Find out how the government is trying to help you teach your kid about finance.
Does it cost more to raise boys or girls? You weighed in here.
Create a family financial vision board with these easy steps.

Tax Tip: What You Should Know About Education Deductions

Robert D. Flach — Wed, 08 Feb 2012 11:30:00 -0500

Editor’s Note: This article is part of our 2012 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) – At the end of 2010 Congress extended for two years a laundry list of temporary tax breaks that had expired on Dec. 31, 2009. These included the popular “above-the-line” deductions for educator expenses and students’ tuition and fees, which are still available on the 2011 Form 1040.

Teachers, counselors, principals, and aides of students in kindergarten through 12th grade who have worked at least 900 hours during the school year can deduct up to $250 of unreimbursed out-of-pocket expenses for books, supplies, computer software, equipment and other classroom materials.

For married couples, if both husband and wife are qualified educators they each get up to $250 of deductible expenses. Educators who spend more than $250, as most do, can deduct the excess as an “employee business expense” on Schedule A if their total miscellaneous deductions exceed 2% of adjusted gross income (AGI).

Most undergraduate college students get the best tax benefit by claiming the American Opportunity Credit and not itemizing deductions. Graduate students can claim either a Lifetime Learning Credit or the special Tuition and Fees Deduction.

Joint filers with an AGI of $130,000 or less, and single filers with AGI of $65,000 or less, can deduct up to $4,000 in qualifying expenses for tuition and fees and required books, supplies and equipment. The deduction is limited to $2,000 for married couples with an AGI of between $130,001 and $160,000 and singles with an AGI between $65,001 and $80,000.

These two items are among the 77 tax deductions, tax credits and other tax-saving benefits that expired on Dec. 31, 2011, and will not be around for 2012 unless Congress extends them again, a measure currently under consideration.

If you’re getting ready to file your 2011 tax return, check out MainStreet’s complete guide to free tax tools to help you do it right!

Morning Deals: $50 to Teleflora for $25

Matt Brownell — Wed, 08 Feb 2012 10:12:29 -0500

NEW YORK (MainStreet) – Daily deal site LivingSocial offers a $50 credit to use at online flower retailer Teleflora for just $25. The entire $50 credit must be used in one purchase, though the good news is that it can be applied to shipping fees. Same-day delivery is available from the site. The voucher expires April 1.

Google already tracks your browsing habits, so why not get paid for it? In exchange for installing the Google Screenwise browser extension, which tracks the websites you use and how you use them, Google will give you a $5 Amazon gift card code upfront; you’ll then get an additional $5 credit for every three months you use the extension, for a maximum total of $25. Google promises it won’t associate your email address with browsing habits. To sign up for the program, just enter your email address and you’ll be alerted when registration for the program opens. You’ll need to use the Google Chrome browser to participate.

Daily deal site Saveology offers a $10 gift card to Ben & Jerry’s Scoop Shops for $5. It will be mailed to you for free, it’s reloadable and it never expires. Before you buy we’d recommend checking out the store locator to make sure there’s a location near you. The deal expires at midnight PDT on Friday.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Meet the Man With 50 Credit Cards

Jeanine Skowronski — Wed, 08 Feb 2012 09:00:00 -0500

NEW YORK (MainStreet) — Scott Bilker first applied for a credit card in the late '80s when he realized he would need to borrow money to pay his tuition bills. His efforts to avoid paying interest and score better deals quickly got him a very fat wallet.

“I knew it was expensive to use credit cards and had to find a way to minimize the costs,” he says. His quest for the best rewards deals, coupled with his desire to prove he could still get banks to lend to him after accumulating 20-plus accounts, led him to amass more than 80 credit cards by 2007.

According to Bilker, banks rarely turned him down thanks to his perfect payment history.

“I’ve never missed a payment in my life,” he says, adding that his credit score, hovering around a solid 790, has been as high as 819.

After downsizing in recent years, Bilker has 50 credit cards at his disposal with his total available credit close to $250,000. (To be fair, while this arsenal of credit cards is formidable, it’s not the largest in existence. The Guinness World Record actually stands at close to 1,500.)

Contrary to what some may believe, he says, having a ton of credit cards doesn’t necessarily lead to massive debts.

“I have a car, but I don’t drive it off a cliff,” Bilker says. “A lot of people might have the impulse to [overspend]. I don’t.”

We asked Bilker, who has gone on to share his unique credit strategies in several books and on his website DebtSmart.com, to share some of his favorite stories to get a better idea of how his unique spending strategy has paid off.

What’s in his wallet

Bilker, who tracks his credit card usage with software such as Quicken and some simple spreadsheets, rotates the cards he actually keeps in his wallet based on which offer the best rewards. His current favorites include the Chase Sapphire (Stock Quote: JPM), since its rewards points can be redeemed for movie ticket gift certificates, and the Discover More card (Stock Quote: DFS), which offers 5% back on gas and allows points to be used directly for Amazon (Stock Quote: AMZN) purchases.
His favorite card of all time

Before using the Sapphire card, Bilker scored even better deals on movie tickets by using his now-discontinued Regal Entertainment Group Theater MasterCard (co-branded by Chase.) “I was getting $300 per month in rewards,” he says. “I was someone with three children who didn’t have to pay a dime to go to the movies.”

His least favorite card of all time

Bilker signed up for a Spirit Airlines (Stock Quote: SAVE) rewards credit card to get discounts on airfare, but found the exercise fruitless.

“There were so many conditions [to the rewards program], I couldn’t leverage it,” he says. Reluctant to close the card and inadvertently lower his credit limit, he switched his account to the no-fee/low rewards card the airline offers.

“I never want to close accounts unless they’re charging high fees,” he says. “You cut out your options [when you close cards] and I want to have as many borrowing options as possible.”

His biggest score

Bilker was able to leverage a promotion that Citi (Stock Quote: C) ran a few years ago that entitled cardholders to 10% cash back on home improvement purchases.

“The timing was perfect,” Bilker recalls, as he was getting ready to spend $10,000 on kitchen cabinets. The promotion effectively saved him $1,000 by giving him that money back to spend on other purchases.

“Don’t spend money to get rewards,” Bilker says. “When I have to use a card [to avoid it being closed for inactivity], I use it on the next thing I was going to buy anyway. Having a credit card doesn’t mean you have to spend.”

Applying for too many credit cards at once can hurt your credit score in the short term. Find out why in this MainStreet credit Q&A!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

DIY Pest Control: How to Be Your Own Exterminator

Matt Brownell — Wed, 08 Feb 2012 07:00:00 -0500

Exterminators are expensive, but you don’t always have to call in a professional. Here are some tips for dealing with pests on your own.

The 10 Fastest-Growing Jobs in the U.S.

Seth Fiegerman — Wed, 08 Feb 2012 07:00:00 -0500

From stonemasons to biomedical engineers, here are the jobs that are expected to expand the most between 2010 and 2020.

Despite What Clint Says, It's Not Halftime for Detroit Housing

Brian O'Connell — Tue, 07 Feb 2012 16:00:08 -0500

NEW YORK (MainStreet) — Data show one key U.S. region is losing ground fast on the housing front, and it’s threatening to drag the rest of the nation’s home values down with it.

The Midwest and its worst performer for the fourth quarter – Detroit – have been the subject of much scrutiny this week over a controversial Super Bowl commercial featuring film icon Clint Eastwood.

Depending on your point of view, the commercial either was an uplifting reminder of America’s resilience or a cheap political ad for politicians who might benefit from Detroit’s perceived economic recovery (see: the current administration). As the debate chugs along, one point is clear: Detroit’s housing story is neither one of shiny resilience nor a story any self-respecting politician would want to take with him or her on the campaign trail.

The numbers come from the Truckee, Calif.-based real estate analytics firm Clear Capital. The company’s fourth-quarter U.S. real estate market analysis takes a snapshot of the health of the nation’s housing sector with data covering up to the end of January. Here are some highlights:

Year-over-year home prices for the U.S. overall lost 2.6% through January.
Quarter-over-quarter home prices for the U.S. declined 1.6%.
The Midwest lost its momentum and led the nation in quarterly losses.
The remaining regions had little change quarter-over-quarter and year-over-year.

Clear Capital notes that the housing market may actually be bottoming out, but could fall right through the floor to see new losses if certain economic issues don’t go the housing market’s way.

“Although prices at the national level continue to slide due to pressure from the Midwest, the lower-priced segments of several specific markets are bucking the trend and seeing appreciation, suggesting that recoveries could be occurring from the bottom up,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital, in a statement. “[But] when we look at the strength in the bottom tier of prices, the volatility within the metro markets, the rapid changes in direction with certain regions and relative stability in others, these factors underscore the economic and market fragility that remains a dark cloud over housing prices.”

Detroit is ranked first among those volatile metro markets, losing 15.5% on a quarter-to-quarter basis from 2010 to 2011. The city’s losses for the entire year of 2011 totaled -11.9%, well ahead of the second-worst performing U.S. housing market, Milwaukee. Beside the 15.5% quarterly price decline, Detroit has also seen a significant “increase in distress sales,” Clear Capital says.

With Detroit and Milwaukee, to an extent, leading a downward trend, overall housing prices fell 4% in the Midwest for the quarter (and 5.2% on a year-to-year basis), even as the rest of the nation saw incremental gains on the positive side of the ledger.

Any more of a decline in Detroit and the surrounding metropolitan areas could crimp the entire U.S. housing market, which has one operative term to describe it right now – fragile.

In that regard, it’s not halftime in Detroit – it’s fourth and long. And the rest of the nation may want to see if the city can pull off a Hail Mary and put some points back on the board.

For more news and updates on the housing industry, check out MainStreet’s real estate topic page!

3 Tips for Emotionally Detaching From Your Home

Zillow.com — Tue, 07 Feb 2012 15:30:00 -0500

By Brendon DeSimone

Like many people, you probably have a deep emotional connection to your home. Your kids grew up in your house; you can still see the pencil marks you made on the door frame marking their growth. You’ve spent many happy hours on the backyard patio. The dining room has been the setting for many great dinner parties. Maybe you even grew up in the house yourself, and it’s been in your family for over fifty years.

You’re fortunate to have had so many good memories. But beware: When it comes time to sell, a “love affair” with your home can work against you. Too often, people make decisions about selling their home based on emotion instead of reason.

What they’re really doing is subconsciously sabotaging their chances for success — and that can cost them money in the end. Here are 3 tips for detaching and moving on so you can get the best deal for your home.

1. Acknowledge that selling your home can be stressful.

Some people get emotionally attached to their cars and have a hard time selling them. To get an idea of what it will be like to sell your home, magnify that reaction by about 100 times.

Those who’ve been in their home just a few years are likely to have an easier time letting go than those who’ve lived there for decades or grew up in the house. Either way, it’s often stressful and emotional. Acknowledging that up front will help you make better decisions down the road.

2. Make sure you're truly ready to sell.

Take the time to ensure you’re emotionally prepared for the sale. Talk to your real estate agent and listen carefully to their suggestions. If you’ve hired a competent agent and yet you’re resisting their suggestions, that’s a clue you may not be ready to let go. If so, don’t sell just yet. Wait until you’re ready.

Maybe you have no choice but to sell — which can be even more difficult emotionally. Get as much support as you can from friends and family. Be honest with your real estate agent about how difficult this is for you. The more information you give the agent, the more they can work around any potential problems.

After all, your agent is looking out for your best interests and acting on the assumption you want to sell. But when you resist their suggestions because you’re actually not ready to sell, you’re setting up the relationship to fail. This is a common source of strain in the agent-client relationship, and savvy agents are on the lookout for this — or should be.

3. Start thinking of your home as a product to be marketed.

When you haven’t detached from your home, it’s difficult to see it as a product. But that’s what it is — something you have to sell and that, with luck, others will want to buy. You can also get in your own way of succeeding.

Often, a seller who isn’t emotionally ready to sell will insist on listing at a price that’s higher than what the market will bear. This is why it’s imperative that sellers should be emotionally ready to sell; when they aren’t, they can subconsciously sabotage the process. There have been instances where a home was on and off the market for over a year with multiple real estate agents and approaches to selling it. What started off as an overpriced home that didn’t show well ended up selling for a bargain to a buyer who capitalized on the seller’s mistakes.

Sellers often need to remove personal items out of the house as part of its staging. This can be as basic as taking down diplomas, removing pictures, or personal items such as Buddha statues, NFL memorabilia or the knick-knacks from your African Safari ten year ago.

Aside from helping to show your home in its best light, removing personal items begins to make your house feel less like your home and more like a “product” for sale. It’s a subtle but important step toward detaching. Also, by removing personal items, you’re getting a head start on moving.

Most likely, your agent will recommend some changes to make your home more attractive to buyers. The flashy red paint in the dining room or the jungle wallpaper in the kid’s bedroom should make way for something more neutral. You should seriously consider your agent’s recommendations; they’ve been through this before and know what they’re talking about. On the other hand, if you balk at such suggestions, it’s another sign you may not be 100 percent ready to sell.

Still not ready? Wait.

By all means, cherish the memories you’ve had in your home. But focus on the future, and imagine the wonderful memories you’ll have in a new home. Think about the excitement that change can bring. Listen to your real estate agent’s advice; that’s why you hired them.

If you find that you can’t do any of these, then wait until you’re ready. In the long run, the most important thing is that you put your absolute best foot forward when you list your home, even if it means waiting months or even a year until you’re ready. It will be in your best interests financially.

Brendon DeSimone is a Realtor® and real estate expert based in San Francisco and New York. He is a contributor to Zillow Blog, has collaborated on multiple real estate books and is often quoted by major media outlets. Follow Brendon on Twitter.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

How Prepaid Debit Cards Can Improve Their Image

Jeanine Skowronski — Tue, 07 Feb 2012 14:15:00 -0500

NEW YORK (MainStreet) — By many measures, the prepaid debit card industry is booming. During the past few months, new cards have hit the market, enhancements have been added to existing ones, fees have been reduced and celebrities have entered into partnerships with various companies.

But each new product, feature or face has been accompanied by an equally widening wave of scrutiny, the gist of which is always the same: The cards offer high fees and low incentives to “unbanked” or “uncreditworthy” consumers who shouldn’t have to pay for the privilege to spend their own money.

While MainStreet thinks some of the criticism is warranted – and has dished it out on occasion as well – we can’t help but think the industry has some potential, if only for the opportunity for innovation if affords. (Case in point: What other payment method could get away with doubling as a student ID?)

But in lieu of abolishing all fees – which isn’t likely since they are largely the only way for issuers to turn a profit on the cards – is there anything providers can do to shake the stigma that’s come to be associated with a prepaid card?

MainStreet came up with a few ways the industry could improve its image.

Make the actual cost of the card easier to understand

While the fees driving much of the criticism are generally high, many prepaid providers are good about disclosing them, and fees are usually given a devoted section on many of their websites. The real issue is that these charts and disclosures are so full of clauses and caveats about how the fees are incurred or, more commonly, avoided, it has become very difficult to figure out how much the card is going to actually cost a person to use. As such, it has also become much more difficult to compare one card to another, since the fee structures and their accompanying clauses are rarely the same.

Several card ranking sites, such as NerdWallet, recently introduced tools that allow consumers to compare prepaid debit cards by specifying how they plan to use them. If a similar tool was provided by the debit card’s issuer, transparency may become less of a point of contention.
Continue to add incentives

Criticism of the industry has become so rampant it’s easy to forget some important factors contributing to the sector’s growth.

First, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which prohibits companies from issuing credit to anyone under 21 unless the applicant has a stable source of income or a willing co-signer, caused parents to look for alternative plastic payment methods that could help college-bound kids in a jam.

Secondly, the Durbin Amendment to 2010’s financial reform legislation excluded prepaid cards from the swipe fee caps that cut into the revenue banks make on traditional debit cards. The Durbin exemption is perhaps more notable here as it gives banks and major issuers the incentive to introduce low-fee prepaid products and fosters competition.

To stand out, many prepaid providers have already added incentives to their existing products. Russell Simmons’ RushCard currently gives cardholders the opportunity to earn $2 back for each month they maintain a balance of $500 or more in linked savings accounts and Mango Financial lets cardholders with direct deposit earn 6% Annual Percentage Yield (APY) on the money in their saving accounts.

Both companies have said they are considering adding other enhancements to their cards. (RushCard is considering alternatives to payday loans and 5% cash back incentives, while Mango says a rewards program is in the works.) While these features aren’t likely to completely eliminate the criticism, they could certainly temper it and lead to new innovations even harder to discount.

Widen their target market …

In many respects, the controversy surrounding prepaid cards isn’t driven by what the cards do or don’t do – it’s who the cards are being marketed to, which are namely low-income individuals who can’t get a credit card or even a bank account in many cases.

Asking folks to pay a fee so they can spend their own money is incendiary on its own – as evident by the revolt banks endured when they announced plans to impose fees on traditional bank accounts last year – so it’s only natural that asking people who are struggling financially to pay a similar fee (and then some) will kick the backlash up a notch.
But if providers were to add incentives, as suggested, and actively market these to moderate income consumers as well, they could come out ahead. After all, debit card rewards programs were killed off by the Durbin Amendment and 5% interest on a savings account is few and far between.

… or bill it as a short-term solution

If a prepaid provider isn’t interested in widening their target market, then it might be best to acknowledge the card’s limitations. Prepaid offerings don’t help consumers build credit and, as such, aren’t a viable solution for someone whose main aim is to get on the grid.

Admittedly, many prepaid providers are actively trying to get credit bureaus to accept their data and factor it into credit reports, but until this happens – and it’s an uphill battle – it needs to be clear that the card isn’t a solution to long-term credit problems.

Not all prepaid cards are created equal. Find out which products rank among the most attractive on the market in MainStreet’s roundup of the best prepaid debit cards!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

JobPoacher.com Gets Head Hunters to Search For You

Seth Fiegerman — Tue, 07 Feb 2012 12:59:00 -0500

NEW YORK (MainStreet) — At first glance, JobPoacher looks less like a job board than a dating website. Anonymous users post details about how much money they make, where they live and what they’re interested in, and then wait for someone reading it to reply. The difference is that users on this site are trying to attract potential employers.

JobPoacher is essentially a career listing service in reverse: Rather than show a list of job openings for users to apply to, the site features a list of employed workers who are open to new job opportunities. As the site’s name suggests, the goal is to help those currently employed actively seek out head hunters so they can be recruited (or "poached") by another company.

Users on JobPoacher are not asked to submit resumes, cover letters or any other in-depth details about their employment histories. Instead, applicants are just asked to fill out a few keywords including their current profession and salary, where they live, what position and salary they are looking for and in what part of the country they want to work. This information is then used to generate a listing on the site.

To be sure, there is certainly no shortage of job websites that let candidates market themselves to potential employers, but what differentiates JobPoacher is that it specifically targets people who are already employed and keeps them completely anonymous so their current employer doesn’t find out that they want a change. The only identification users are asked to provide is an email address that recruiters can use to get in touch, but as with websites like Craigslist, the actual email address is not shown in the listing.

As MainStreet has reported before, it’s in one’s best interest to search for a job while already employed, since companies are often wary of unemployed applicants, but this requires a certain amount of sneaking around to prevent your current company from finding out. So while LinkedIn and Facebook may be great ways to highlight your career experience, you can’t explicitly state on these websites that you’re looking for a new job because anyone you work with can potentially see this. That’s what makes JobPoacher so attractive.

On the other hand, it’s unclear how effective JobPoacher will be in matching recruiters with job seekers. By default, users are forced to leave out any identifying characteristics, which means their listings have no personality. There is little to differentiate one “systems engineer” from another in the same city except by the salary they want. What’s more, employers really can’t learn anything about the candidates prior to e-mailing them, which means recruiters may not like the people they follow up with.

In a very real sense, this site makes the job hunting process more like a blind date.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Cash vs. Bonds: How Interest Rates Change the Game

Jeff Brown — Tue, 07 Feb 2012 12:14:45 -0500

NEW YORK (MainStreet) -- Fixed-income investors are in a classic lose-lose situation: Put your money in cash and you’ll be safe but earn almost nothing. Put it in bonds and you’ll earn a bit more, but probably not enough to offset loss of principal if interest rates rise.

As we’ve been saying for a while, interest rates are so low right now they’re more likely to rise than to fall even further. Higher rates on new bonds make older, stingier bonds less attractive, causing their prices to fall. That leaves the bond investor an unpleasant choice: sell at a loss or keep the bond and continue to receive substandard yield until the bond matures and your principal is repaid at face value.

You can avoid all this by shifting to cash, though the low yields might give you some sleepless nights.

The bonds-vs.-cash decision is a classic struggle between risk and reward. To shed light on the issue, Christine Benz of Morningstar, Inc., the market-data firm, has recently revisited her earlier explanation for how to stress-test a bond holding, drawing on work by Ken Volpert, head of the taxable bond group at Vanguard, the mutual fund giant.

The analysis is worth another look now as investors sort conflicting signals: jittery financial markets that threaten to push rates up, working against the Federal Reserve’s vow to keep them low.

The process begins with duration, a measure of volatility in bonds and bond funds. Duration, which is found on a bond fund’s website, is measured in years. A duration of 5 years, for example, means that the bond fund would lose 5% of its value for every percentage-point increase in prevailing interest rates. That means 10% for every two-point rise, or a 10% gain in value for every two-point decline.

But duration is just part of the story, because the investor may choose to continue owning the fund even after the share price falls. In that case the loss in principal would be partially offset by interest earnings.

So Volpert’s approach is to subtract the fund’s yield from its duration. He recommends using the SEC yield figure, which is also usually on a fund’s website. The result shows how much the investor would lose after 12 months. There could, of course, be a gain if the yield was healthy and the duration was very short or the interest increase very small.

In Benz’s example, the Vanguard Total Bond Market Index fund has a duration of 5.1 years and yields 2.23%. That means every one-point rise in interest rates would cost the investor about 2.9%. By subtracting the yield from the duration, the investor would get a better sense of the risk and reward of keeping money in bonds instead of moving to the safety, but low returns, of cash.

Keep in mind, though, that the duration-minus-yield calculation only reveals losses during the following 12 months. In the example above, the investor would lose 2.9% during that period, but then earn 2.23% in the following year, assuming that were still the fund’s SEC yield.

Of course, that assumption is not guaranteed. If rates were to rise, the fund’s yield would gradually rise as well as old bonds in its portfolio were replaced with new ones.

Interest rates affect fund traders every day, but plenty of investors use money funds to plan for their retirement. Check out our look at 7 Funds to Rebuild Your Nest Egg for 2012 for tips on where to put your money!

Morning Deals: Free Drink at Starbucks

Matt Brownell — Tue, 07 Feb 2012 09:26:14 -0500

NEW YORK (MainStreet) – Starbucks is currently offering a free beverage when you purchase a 1-pound bag of its new Blonde Roast or a 12-pack of its Veranda Blend instant coffee. The free beverage can be any size, and the promotion is good through tomorrow only at participating locations.

Amazon.com has marked down a box set of the first four paperback books of George R.R. Martin's A Song of Ice and Fire fantasy series to $21.03 from $35.96. The hit HBO show Games of Thrones is based on the series.

If you’re enrolled in the Papa John's rewards program, you're entitled to a large one-topping pizza and 2-liter Pepsi Max for free as a result of the Super Bowl coin toss landing on heads. Rewards members should have received their code in their email inbox by now, but if you haven't received it yet you might try checking your spam folder. Once you receive the code, you have until 11:59 p.m. EST on Feb. 19 to redeem it online.

5 Not So Hot Cars in January

Tue, 07 Feb 2012 09:00:49 -0500

DETROIT TheStreet) -- January was a good month for the automakers, as sales reached their highest level in more than two years, but not everything was rosy in the auto industry.

January also produced its share of disappointments.

We are not even talking about the Volt, even though its sales declined to 638 units, its worst month since August. Obviously, consumer perceptions of the Volt were tarnished by the National Highway Traffic Safety Administration's investigation of the car's fire risk, which concluded Jan. 20 with a production halt still in effect as GM (Stock Quote: GM) developed a method to prevent potential post-crash fires.

Probably what the Volt needs most just now is one more reminder that, over the long term, oil prices are headed up, not down. Are you reading this, Mr. Ahmadinejad?

In any case, we set out to find established vehicles with substantial sales totals that failed to measure up to previous performance, even if they did not see particularly large percentage drops.

It is worth noting that of the big seven U.S. automakers, only GM showed a year-over-year decline in sales, and it resulted primarily from the automaker's decision to pull back on its high incentives in January 2011.

Still, each automaker had a loser or two. Here are our top five.

Cadillac CTS

Sales of the Cadillac CTS fell 31% in January, to 3,019, replicating the 29% overall decline to 8,924 vehicles for the Cadillac brand. Sales of Cadillac's sales leader, the SRS, fell 2%, to 4,166.

"With CTS specifically, our biggest issue was tough year-over-year comparisons -- our incentive spending was high a year ago -- and aggressive competition as BMW and Mercedes outspent Cadillac on incentives," GM spokesman James Cain says.

"We were also impacted by having fewer returning leases, which is a function of the financial crisis," he says.

Also on the GM sales call, Kurt McNeil, Cadillac vice president of sales and service, noted that the luxury segment weakened in January, accounting for only about 11.3% of industry sales, down from 13.1% for the full-year 2011.

McNeil said he expects luxury sales to improve this year. "Stock market volatility has something to do with that," he says. "If things calm down a little bit I think we'll see some good buying and strength there."

Toyota Corolla

Sales of the Toyota (Stock Quote: TM) Corolla fell 13%, to 17,988. But sales of the Camry rose 56%, to 28,295, while Prius sales rose 9%, to 11,555.

Overall, Toyota's sales rose 20% in January. "The company's focus has been on the launches of Camry and Prius, with little on the Corolla side," spokeswoman Sacha Terrill says. But Corolla sales remain strong "even without the marketing push."

For the month, Corolla remained the eighth-best-selling vehicle and third-best-selling car in the U.S., behind Camry, Nissan (Stock Quote: NSANY) Altima and Honda (Stock Quote: HMC) Civic.

On Monday, Toyota said it added a second shift for Corolla production at its Blue Springs, Miss., plant. The $800 million plant has the capacity to produce 150,000 Corollas annually.

Ford Fiesta

Sales of the Ford (Stock Quote: F) Fiesta lost 18%, to 3,502, even as sales of the Ford Focus surged 60%, to 14,440. Meanwhile, sales of the Fusion, which had been Ford's most popular car, fell 5%, to 13,614.

On the Ford sales call, sales analyst Erich Merkle said Fiesta is evidently losing sales to Focus. "There is always going to be cross-shopping on any dealer lot," he said. "We've got two vehicles that are very close together in terms of size, in terms of their price point, and at this point in time Focus is the newer vehicle and people seem to be gravitating toward that product."

Overall, Merkle says, the two cars combined give Ford 10% of the small-car segment, Ford's highest level since 2003. "They're coexisting very nicely on the dealer lot," he says. Additionally, Ken Czubay, Ford vice president of U.S. marketing, sales and service, says Fusion has been affected by anticipation of the new model. "We're in our sell-down pattern," he says.

Nissan Sentra

Sales of the Nisan Sentra fell 26%, to 7,066, even as Nissan Altima sales rose 36%, to 22,357, and overall Nissan sales rose 10%, to 79,313.

Sentra "is very dated," Edmunds.com analyst Michelle Krebs says. "It is up against a bevy of spanking new little cars that get spectacular fuel economy -- Chevy Sonic/Cruze, Ford Fiesta/Focus, Hyundai Elantra/Accent, Kia Rio, VW Jetta -- etc, and it is in dire need of a makeover."

The last new version of the Sentra was the 2007 model, which arrived in 2006, with a few improvements in 2010. Fortunately, the 2013 Nissan Sentra is expected to arrive in mid-2012.

Honda Accord
Accord sales gained just 1.5%, to 13,659 units, compared with Honda's overall gain of 9%, to 83,009 vehicles, as Civic sales gained 50%, to 21,883 units, and sales of the new Honda CR-V gained 16%, to 18,960 units.

"Honda's return to full strength on the manufacturing front is already beginning to pay dividends on the sales floor," says John Mendel, American Honda executive vice president of sales, in a statement. "It's gratifying to see how many Civics we can sell when we actually have Civics to sell."

Still, "Honda's product pipeline won't be fully replenished until the end of March," Krebs says. Meanwhile, Accord "has a lot of competition with a revamped Camry, Hyundai Sonata, Kia Optima, Nissan Altima -- which is old but has been selling like crazy, VW Passat, Chevy Malibu and Ford Fusion," she said.

"The Accord gets re-done for fall, one of the last of the group to get a makeover," Krebs says. The new Accord, unveiled at the Detroit Auto Show, is expected to arrive in the fall.

It may have been a bad January for some car manufacturers, but that's nothing compared to the 10 Worst Cars of All Time!

Get Ready for the Job Market to Become Even More Competitive

Seth Fiegerman — Tue, 07 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) — When the Bureau of Labor Statistics announced Friday that the unemployment rate had dropped to 8.3% after the economy added nearly 250,000 jobs in January, the message seemed clear: The U.S. is hiring again. Not only did this shatter hiring expectations, but it represented the fifth consecutive month that the unemployment rate had declined.

While that certainly sounds like good news for the millions of Americans currently looking for work, economists say it could also cause some of those who gave up on their job hunts in recent years to come back and resume their search, which would effectively make the labor market that much more competitive.

“There’s no question that more people will be entering the labor force,” says Mark Price, a labor economist with the Keystone Research Center, who notes that it’s necessary for more workers to re-enter the job market in order for the economy to get healthier. “But it’s absolutely correct to worry. From the perspective of someone looking for work, there is a good chance that there will be extra bodies out there looking too.”

Price and other economists who MainStreet spoke with do not expect there to be an influx of new workers overnight, but rather gradually throughout the course of the next six months or so if the positive jobs numbers continue. However, as Price points out, even that trickle of extra workers could pose a threat to current job hunters given that there are still more than four unemployed workers for every job opening.

To complicate matters further, baseline improvements in the jobless rate from month to month may overstate the actual pace of improvement in the labor market. Yes, unemployment is now at a three-year low, but some of that is due to the many Americans who either stopped looking for work altogether or accepted part-time employment out of desperation, since neither group is counted among the unemployed. The underemployment rate, which does factor in part-time workers, is stuck above 15% and the overall percentage of the population that is employed, which factors in those who gave up, remains more than four percentage points below where it stood just before the recession.

For many job hunters though, the traditional unemployment rate is all that matters and it’s that statistic which will convince people to look for jobs again even if the labor market is weaker than the unemployment rate implies.

“That’s the number which will be on the nightly news and in all the morning newspapers,” says Gary Burtless, a labor economist at the Brookings Institution, a nonprofit public policy organization. The net effect, he says, is that there may come a time when people start re-entering the labor force faster than the pace at which jobs are created. “There are going to be months where there is reasonably healthy job growth, but no decline in the number of unemployed. In some months, there may even be an increase.”

Just because more people return to look for jobs in the coming months doesn’t necessarily mean that those who have been applying all along will be worse off. For starters, as more of the unemployed start finding work, Price predicts that some who currently have forced themselves to take certain jobs to support their families will either switch positions, cut down their hours or stop working altogether.

“Think of the construction industry for instance,” he says. “Typically it's a male workforce and it's not unusual for the spouse not to work, but they may have taken on more hours if their husband got laid off, so you might see some spouses pull back out of the workforce.” If so, that would create additional job openings and potentially cut down on some of the extra competition.

Moreover, as is true anytime one applies for a job opening, one’s success depends largely on who the competition is and how their experience compares. According to Burtless, many of those who stopped looking for jobs were younger workers who either went back to school or bided their time with travel and other activities. These are the workers who are most likely to come back in droves in the next six months and if their resume has long gaps or shows less work experience than yours, you will likely be in a better position to get hired.

“Suppose they haven’t been doing anything and the last job on their resume ended two and a half years ago,” Burtless says. “Their resume will look like they haven’t done anything. I’m not sure that changing their status as far as the BLS is concerned from being out of the labor force to looking again will really make a difference.”

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Want Your Kids to Do Their Chores? Use Technology

Brian O'Connell — Mon, 06 Feb 2012 16:43:49 -0500

NEW YORK (MainStreet) – Getting kids to stay on top of their chores has always been a challenge for parents, but it seems new technology is allowing today’s moms and dads to find clever ways to make sure those dishes get washed and beds get made.

According to data from DoughMain, a Princeton, N.J.-based family financial software provider, parents are increasingly using online chore charts kids can access from their smartphones and iPads to remind them to do their chores.

“Using online chore charts, parents can teach kids about their responsibility to contribute to the household and keep track of these efforts with a digital tool,” DoughMain says in a statement. “By connecting chores to allowance or a rewards program, parents can also teach kids about the fundamentals of money management through real-world experiences.”

The company reviewed 1,500 families who use DoughMain’s “Chores Tracker” tool to uncover the most common types of chores parents are assigning their kids via digital devices.

Here are the most popular items on that list:

Brush and floss teeth

Clean bedroom

Do homework

Make bed

Be on time for bus/school

Clean bathroom

The trend in household chore assignments is reminiscent of the line from an old bank robber named Willie Sutton. Asked why he robbed banks, Sutton memorably replied, “Because that’s where the money is.”

A similar philosophy applies to parents and chore lists: Reaching out to kids on their digital devices is smart household business because, to paraphrase Sutton, that’s where the kids are.

There seems to be plenty of incentive for kids to stay on top of their tasks: Accordingly to a June survey from American Express (Stock Quote: AXP), a whopping 71% of parents paid their children to do their chores last summer.

The Best Credit Union Credit Cards

Jeanine Skowronski — Mon, 06 Feb 2012 15:49:37 -0500

NEW YORK (MainStreet) — While thousands of bank customers have found better deals on checking accounts and all of their associated fees by moving their money from big banks to smaller community banks and credit unions since Bank Transfer Day, do the smaller institutions offer the same benefits for credit accounts?

Credit cards issued by credit unions generally offer lower interest rates than cards from major issuers, but not all of these products are created equal.

To help you choose the best card for you, MainStreet asked the experts which credit union credit cards were the best ones currently on the market. Anyone considering a switch in their credit accounts should consider these four:

PenFed Premium Travel Rewards American Express Card

Those with good credit scores can make a one-time $15-$20 donation to one of the nonprofit organizations associated with Pentagon Federal Credit Union (a required step to join the credit union), since its premium rewards cards can net cardholders much more than that in the long run. PenFed’s Amex (Stock Quote: AXP) gives cardholders five points for every dollar spent on airfare purchases and one point for every dollar spent on other purchases. They can also earn three points back on dining purchases through a promotion lasting until April 30, 2012.

Rewards aside, the card also offers a variable 9.9% annual percentage rate, it carries no annual fee and it does not incur any foreign transaction fees.

“It’s an excellent rewards card, not just for credit unions but for the whole industry,” says Beverly Harzog, a credit card expert with Credit.com.
NASA Federal Credit Union Platinum With Cash Rewards.

This rewards card from the NASA Federal Credit Union entitles cardholders to a 1% rebate for purchases up to $1,000, a 1.25% rebate for purchases from $1,001 to $2,000, and a 2% rebate for purchases $2,001 or more.

“This means the card is nearly a 2% card with no annual fee if you spend more than $2,000 per year,” says Tim Chen, CEO of credit card ranking site Nerd Wallet.

For cardholders who keep a balance from month to month, the card features a variable APR between 13.9% and 17.99%, depending on creditworthiness, and no annual fee. According to Chen, anyone can join the credit union by signing up to be a member of the American Consumer Council, which is free if you join a credit union.

PenFed Visa Platinum Cash Back Card

Another solid product from PenFed, this Visa (Stock Quote: V) cash-back card is great for anyone who owns a gas guzzler, since it entitles cardholders to 5% cash back on gas purchases paid at the pump throughout the year. It also entitles cardholders to 0.25% cash back on all other purchases during each billing cycle.

“Those are unbeatable gas rewards, because unlike other cards, you get the 5% on gas year round,” Chen says.
The card features a low 9.99% low introductory purchase APR, fixed through June 30, 2014. (After that date, the APR will increase or decrease based on the prime rate.) It also has no annual fee.

Navy Federal nRewards Card

The Navy Federal Credit Union has both a secured and traditional version of its nRewards card that entitles cardholders to earn points on 1% on all purchases, which can be redeemed for a variety of gift cards.

Additionally, each version of the card features a low variable 8.99% percentage rate and no annual fee. Sadly, unlike the other cards on this list, only members of the military and their family are eligible for membership.

“If you’re affiliated with the military, the card is a good option,” Harzog says.

Looking for a low-interest credit card? We have a few more for you to consider in this MainStreet roundup!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Online Banking on the Rise, With 1 Notable Exception

Brian O'Connell — Mon, 06 Feb 2012 15:00:00 -0500

NEW YORK (MainStreet) – Thanks to advancements in mobile and Web technology, we have more tools than ever in our pockets and on our screens these days, but the unstoppable rise of digital banking is far from a foregone conclusion.

A study from Web analytics firm comScore underlines the importance of online banking, but says that one key component – online bill pay – is still getting short shrift from a large block of consumers.

The study notes that 66% of Americans have used online bill payment technology before, but banks can’t close the deal on an apparently stubborn (or cautious, depending on your point of view) group of bank customers who worry about online security.

As the data indicate, security concerns are increasingly keeping those who don’t use the service from using it, suggesting that any hope banks have to make bill pay a fully automated process that they manage for people has a large hurdle to clear first. A comparison between last year and 2010 shows people’s increasing concern over online security:

Security concerns
2010: 29%
2011: 43%

Concern over available funds
2010: 14%
2011: 13%

Service is too complicated
2010: 8%
2011: 13%

After growing by 19% in 2010, the online bill payment business saw a precipitous drop in activity, growing only by 2% in 2011. More consumers favor paying all or most of their bills through banks (21%) than credit card companies (16%), but relatively few have consolidated their bill payments with a single financial institution, comScore says.

If and when banks and credit card companies can ever find a way to convince consumers that their online financial data is safe, then financial institutions may really be able to close the gap and get people to use online bill payment more readily.

But that day seems far away, and many consumers won’t sign on until the threat of identity theft significantly dissipates.

“Today’s Internet threats wear many different disguises, from fake websites to fraudulent text messages on cellphones,” warned Michael Benardo, chief of the FDIC’s cyber-fraud and financial crimes section, in a 2011 report. “That’s why online consumers need to be aware that they may be targeted and they should always be on guard.”

The FDIC advises consumers to use credit cards to pay bills online rather than debit cards (credit cards offer more protection), and to mix up their user ID and password combinations when paying bills (making your email address your user name is a surefire way to attract ID thieves, the agency says).

Until consumers feel safe paying their bills online, banks may find it difficult to get those numbers from 66% to 100%. It’s a significant obstacle, and one that will likely act as a drag on full online banking adoption in the future.

App of the Week: LowestMed

Seth Fiegerman — Mon, 06 Feb 2012 14:49:00 -0500

Editor’s Note: This piece is part of a weekly series in which MainStreet spotlights one new smartphone app that can help readers manage their money, shop better or improve their job search. Check back each week to find out how to make your smartphone even smarter!

NEW YORK (MainStreet) — LowestMed hopes to be the Kayak for the drug industry by making it easier for shoppers to do price comparisons on their medications.

The app, available for free on the iPhone and Android phones, lets users search for stores nearby that have the lowest prices on generic and brand-name prescription drugs. All the user has to do is enter the name of the drug on the app and pick the dosage amount, and it will highlight a handful of major pharmacies and grocery store chains that carry it along with the prices. The app even offers an electronic discount card that customers can present in the store to ensure they get the quoted price.

While the app does fill a void, it also has a few flaws which we’d like to see improved in future versions. For starters, users must search by the scientific name of the drug (ibuprofen, for example) rather than the brand name (like Advil or Motrin). The goal seems to be to emphasize the price rather than the brand and show off the cheaper generics available, which we definitely understand, but from a practical standpoint it would certainly be easier for someone to search by the more well-known brand name and then learn of the alternative drugs that fall in the same category.

Along the same lines, the other big complaint we have is that the results only show the prices of the drug and not the brand. So you can find out the cheapest place to get a 400-mg dose of ibuprofen that lasts for 30 days, but you won't know whether that is Advil, Motrin or a generic brand. Even if the goal is to play up the price of a medicine over the name on the bottle, those using the app should have the option to find out the specific brand of the drug they are looking for without having to visit the store.

Despite those complaints, the app is worth a try if for no other reason than to get a better sense of the price range for particular medications. It will certainly make you think twice about passing up the generic drug for the brand name.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

The Secret (and Annoying) Language of Business

Joe Mont — Mon, 06 Feb 2012 13:00:00 -0500

BOSTON (MainStreet) -- This story may be a mission-critical solution for your enterprise needs.

Whatever that means ...

Nearly every profession has its own jargon, those words and phrases that can come across as gobbledygook to the untrained ear.

There are two ways of looking at jargon. It can be either a clever shorthand mutually understood by colleagues or, more cynically, a way to bamboozle outsiders, to make the simple seem more complex and mysterious -- the tongue-twisting equivalent of a secret handshake.

The technical definition, according to Webster's, is less than kind: "The technical terminology or characteristic idiom of a special activity or group ... obscure and often pretentious language marked by circumlocutions and long words."

A survey last year by CareerBuilder asked 5,300 full-time workers, "What corporate jargon would you like to eliminate altogether?" The most offending terminology, in order of annoyance:

Outside the box. Low-hanging fruit. Synergy. Loop me in. Best of breed. Incentivize. Mission-critical. Bring to the table. Value-add. Elevator pitch. Actionable items. Proactive. Circle back. Bandwidth. High-level. Learnings. Next steps.

Language is constantly evolving, with new bits of insider-speak being added and, occasionally, phrases slipping into the mainstream, such as "Wi-Fi."

No one is immune to thinking everyone else is hip to your insider phrasing. Our journalistic colleagues also plead guilty.

We had a source recently admit they had no idea what we were talking about when we promised to "circle back" with information. A former publisher chewed out an editor for using the journalistic tradition of spelling the opening of a story as a "lede," an archaic printing press term that, like "hed," is still clung to. (That annoyed, un-hip publisher snapped back, interrupting an explanation, "All I know is that I have an editor who can't spell lead.")

Space doesn't permit us to offer a complete Rosetta Stone for deciphering professional jargon. We do, however, offer a look at some of the professions guilty of babbling out streams of jargon:

Doctors and nurses

We've come a long way from "take two aspirin and call me in the morning."

Dealing with a steady stream of sickness and death, it is no surprise brevity and dark humor are coping mechanisms for medical professionals.

The Patient Protection and Affordable Care Act of 2010 even tackles the sometimes bewildering use of language by medical professionals, defining health literacy as "the degree to which an individual has the capacity to obtain, communicate, process and understand basic health information and services to make appropriate health decisions."

Complicated medical terminology is blamed for the lack of health care literacy in the U.S.

A recent study by the Centers for Disease Control and Prevention found that "nearly 9 out of 10 adults have difficulty using the everyday health information that is routinely available in our health care facilities, retail outlets, media and communities."

"Without clear information and an understanding of the information's importance, people are more likely to skip necessary medical tests and end up in the emergency room more often," it said.

Among the insider-speak of the medical profession, often comically documented throughout the Internet, is to point out patients by their diagnosis, referring to "the appendix in room 302" for example.

There are also abbreviations and made-up words that sound very similar to common, everyday phrases but have very different meanings.

"Ad lib," doesn't refer to a comic improvising; in a hospital it stands for "at liberty" -- in other words, what a patient is allowed to do without restrictions.

Police may label your alias with an "AKA" preface, but a surgeon may be preparing for an "above the knee amputation." There's nothing sexy bout "T&A" when it stands for a "tonsillectomy and adenoidectomy."

"Viral shedding" sounds downright dangerous, but it's just a fancy way of describing a cough or sneeze.

There is often a morbid sense of humor in patient reports, especially back in the day they were usually kept from the prying eyes of patients.

A "baby catcher" is better known as an obstetrician. Considerably darker is to refer to a "blue bloater" -- a fat person suffering a respiratory attack. "Brothel sprouts" are better known as genital warts.

It probably isn't good news when a biopsy result proves so intriguing to your medical team that it gets referred to as a "fascinoma." "GACP," or "Gravity Assisted Concrete Poisoning" is a blunt way to describe the injuries sustained from a high fall.

Not every doctor, of course, injects dark humor into their charts and fewer these days probably do so in an age of patient rights and portable records. Nevertheless, as the CDC advises, if you don't know what your physician says, just ask for a definition.

Real estate

A real estate expert once made us pause when she mentioned the "romance paragraph" of a property.

Despite our initial thoughts of Fabio and roses, she explained that a romance paragraph is that killer phrase in any real estate listing designed to grab the attention and imagination of a potential buyer -- the one playing up a home's best feature.

Over the years, plenty of real estate jargon has become the butt of jokes.

A "handyman's delight," was a kinder way of saying "fixer-upper." "Sweat equity" could mean the home is in worse shape than even the previous phrase implies.

"Easy freeway access" may sound great until you realize an interstate runs by your gazebo. Ditto for selling points such as "close to amenities" or "near transportation."

"Lots of storage space" can be a clue that the basement is too small to be usable for anything other than stacking your boxes.

Before a house gets built, planners are likely tossing around their own unusual language. In her book A Field Guide to Sprawl (W.W. Norton & Co., 2004), author Dolores Hayden includes a glossary of some unusual terms.

An "alligator" is a real estate investment producing no income; "Litter-on-a-stick" refers to outdoor advertising, especially billboards. "Bomburbs" are places with more than 100,000 residents that are not the largest cities in their metro areas. LOS-F is engineering jargon for "level of service, failing," usually referring to traffic jams.

A "pig-in-a-python" can be used to describe an edge city extended from a strip, a place that might include plenty of "dead worms," those cul-de-sac layouts common to residential subdivisions.

Technology

Throughout much of the dot-com era, PR people pitched tech companies as providing "best-of-breed solutions for the enterprise." A loose translation: "We make good stuff and sell it to companies."

The tech sector thrives on jargon. Much of it is an attempt to sum up a complex function without reciting an hour of explanation: ActiveX, BIOS, DIMM.

Other terms are less functional. Britain's Computeractive magazine recently polled readers for its "Unspeakable Award," recognizing the worst of computer-related jargon. The winner: sexting.

"Defriend," to remove someone from your social networking site, and "intexticated," being unable to concentrate while driving due to being distracted by texting, were runner-ups.

Other maligned social media buzzwords, destined for either the graveyard or dictionary, are "blogosphere," "digerati," "rockstars/gurus" and "lifehack."

The financial world

Anyone who deals with money, from stockbrokers to financial advisers, have their own lingo.

Case in point is an op/ed piece Pimco CEO Mohamed El-Erian wrote for The Wall Street Journal last month.

"Navigating unpredictable markets requires investors to rely less on historical short cuts and, instead, spend more time decomposing asset classes into their constituent risk factors," he wrote. "Moreover, they need to internalize a much broader set of correlations, pursue a more global opportunity set and mitigate risk not only by diversifying but also by using active tail hedging aimed at protecting against the bad extremes of possible outcomes."

Got all that?

Post-recession, you might be happy to never again hear an economist or analyst speak of "the new normal," a phrase often accompanied with talk of a "new frugality."

In the world of IPOs and M&A, a "bake off" is the frenetic need to improve a presentation or pitch and you may be trying to "boil the ocean" by trying to squeeze a whole bunch of round-hole/square-peg analysis into it.

A stock with a market value of less than $500 million might be described as an "ankle biter." A rally just before a free-fall is a "dead cat bounce."

The folks who pore over analytical charts have a colorful way of expressing nearly every pattern: death cross, shaven heads, hammers, butterflies and gravestones.

Retail

Retailers have their own colorful way of describing their efforts to attract and sell to shoppers. "Romancing the customer" is a phrase used to express that general mission of getting "mind share," meaning having the customer think of you before competitors.

"Swing area" describes how shelves, fixtures and signs are used to steer customers in a desirable way through a store.

Alternately, "visual pollution" is overdoing the signs and decor, creating a headache that drives away customers rather than getting them to open their wallets.

"Proportional merchandising" is a fancy way of saying best-sellers get more floor space than those that aren't moving. "Keystone," is when an item is priced at twice the initial cost.

Unlike a variation on the term once lamented by Seinfeld character George Costanza, "shrinkage" is a catch-all term for missing merchandise, usually because of employee theft and shoplifters.

Super Bowl Commercials: The Winners & Losers

Seth Fiegerman — Mon, 06 Feb 2012 12:15:00 -0500

NEW YORK (MainStreet) — The Giants may have won the Super Bowl, but Doritos won the equally competitive contest for the best advertisements during the game.

The Brand Bowl, a Super Bowl ad-rating feature hosted on Boston.com each year, analyzed 400,000 tweets to find the most and least effective commercials during the big game in terms of overall views and positive feedback. Doritos’ Super Bowl commercials earned the highest score in this competition by being the most talked about with 48,498 tweets and the third most well-liked with a 29% approval rating.

Doritos followed the same playbook it has used for each of the previous four years by holding its Crash the Super Bowl contest, in which fans can submit videos for a chance to have them air during the game. As a result, several of the ads earned some buzz well before kickoff.

M&M’s commercials sparked 18,316 tweets, far fewer than Doritos, but they had by far the highest favorability rating of any that aired, which may be a testament to the new Ms. Brown character that the company introduced. GoDaddy’s commercials, on the other hand, were the least well-liked of any that aired, perhaps proving that controversy isn’t always the best approach for Super Bowl advertising.

However, the real losers are arguably those who spent big bucks buying ad time and failed to get anyone to talk about their commercials afterwards. These include companies like Cadillac, Century 21 and Lexus, each of which generated fewer than 1,000 tweets for their Super Bowl commercials.

Here are the 10 brands that had the most effective commercials, according to Brand Bowl's data:

1. Doritos (48,498 tweets) (Sentiment +29%)

2. H&M (43,536 tweets) (Sentiment +14%)

3. Chrysler (33,943 tweets) (Sentiment +10%)

4. Pepsi (39,242 tweets) (Sentiment +8%)

5. Chevrolet (36,934 tweets) (Sentiment +17%)

6. M&M's (18,316 tweets) (Sentiment +41%)

7. Budweiser (18,916 tweets) (Sentiment +12%)

8. VW (17,131 tweets) (Sentiment +26%)

9. Coke (18,463 tweets) (Sentiment +4%)

10. Bud Light (15,298 tweets) (Sentiment +18%)

Just Received a 1099-C? Don't Freak Out!

Credit.com — Mon, 06 Feb 2012 11:30:00 -0500

By Gerri Detweiler

Over the past week we’ve been flooded with panicked questions from taxpayers who are freaking out after have receiving 1099-C or 1099-A forms for debts that were forgiven, never paid back or wiped out in bankruptcy. The main theme of these questions is “Do I have to pay taxes on the amount on the 1099-C (or 1099-A)?”—usually followed by “HELP!!?”

My first piece of advice: Take a deep breath! You may not have to pay taxes on the amount of the income listed on the 1099-C or 1099-A.

At the same time, doing nothing is not an option. If you got a 1099-C or 1099-A, so did the IRS. That means you must explain to the IRS why that amount should not be included in your income. If you don’t, the IRS will assume that money counts toward your income and you may either get a smaller tax refund than you expected or, worse: A bill from the IRS.

How can you avoid including that amount in your taxable income? By showing that you qualify for an exclusion or exception. I described these in my previous article, How to Avoid Taxes on Cancelled Debt, and more details are also available on the IRS website. You may be able to simply fill out Form 982, claim an exclusion or exception, and be done with it. Sometimes it’s more complicated than that, though, and you need to work with a tax professional.

[Related Article: 1099-A In the Mail? How to Avoid Taxes on Cancelled Debt]

Here are a couple of examples of questions we received recently about 1099-Cs:

1099-C for Debt Wiped Out in Bankruptcy

I included my automobile with my bankruptcy in 2010, it was a Chapter 7. However I received a 1099 for the car that I included in the bankruptcy. What do I do now? Must I pay the taxes on this large amount even though it was included in my bankruptcy? Please help.

Debt that was discharged in bankruptcy can be excluded from your taxable income. Take a look at Form 982. At the top of the form you’ll see box 1 a. Discharge of indebtedness in a title 11 case. (Don’t be confused by the reference to “Title 11″—that’s just the part of U.S. Code that covers bankruptcy). You can check that box. Then on Line 2, you’ll put the amount that was discharged in your bankruptcy for that debt and any others that were reported on a 1099-C. That amount will be excluded from your income. It should be simple enough.

[Related Article: 1099-C In the Mail? How to Avoid Taxes on Cancelled Debt]

Student Loans Cancellation

My student loans were discharged. I am on Social Security. Do I have to file the 1099-C I received for $62,000? My student loans were discharged due to total disability and I don’t file taxes because Social Security is non-taxable….HELP!!!!

First, keep in mind you don’t file the 1099-C; the lender does. A copy has already been sent to the IRS. So you must now demonstrate to them that part or all of that “income” is not taxable. How do you do that? By figuring out whether you qualify for an exclusion or an exception, and if you do, filing form 982.

You mention that your student loans were “discharged.” Do you mean discharged in bankruptcy? Or do you mean they were cancelled due to your total disability? If they were discharged in bankruptcy, then read the previous question and answer for more information on how to claim the exclusion for bankruptcy debts.

[Related Article: The Best Balance Transfer Credit Card in America]

If they were cancelled, however, then it’s not quite as simple. According to the IRS, “Generally, if you are responsible for making loan payments, and the loan is cancelled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes.” There is an exception for student loans that were used to attend a qualified educational institution and were cancelled because you worked for a certain period of time in certain professions. (An example would be a doctor who works in a qualified low-income area.) I didn’t find any reference to an exception or exclusion for student loan debt that was cancelled due to disability, though.

However, you may qualify to have part or all of the $62,000 excluded from your income if you are considered by the IRS to be insolvent. You’ll see a simplified example of how that works on our Infographic: What to Do If You Get a 1099-C. Review Form 982 and the instructions to see if you feel comfortable filling it out yourself. If not, your disability may qualify you for free or low-cost tax help through the Volunteer Income Tax Assistance Program.

Please keep in mind that I am a credit expert, not a tax expert, and the information in this post is strictly for educational purposes. See a tax professional or contact the IRS for help with your individual situation!

Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.

IRS Offers Free In-Person Tax Prep

Jeanine Skowronski — Mon, 06 Feb 2012 10:40:35 -0500

NEW YORK (MainStreet) — Tax season can be a stressful time for many Americans, but the Internal Revenue Service is making an effort to lend a hand by providing free in-person tax prep from certified volunteers to moderate- to low-income taxpayers.

Anyone who made $50,000 or less last year can get help in preparing a basic return through the Volunteer Income Tax Assistance program. The program also provides information on special tax credits those people may qualify for, including the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly or the Disabled. Taxpayers who meet the income requirements can call 1-800-906-9887 or visit the IRS website to find a VITA site in their local community.

Taxpayers 60 and older can also get free assistance through the Tax Counseling for the Elderly (TCE) program, whose volunteers specialize in questions about pensions and retirement issues unique to seniors. Interested seniors can call 1-888-227-7669 or visit the IRS website to find a participating site near them.

The IRS is also offering taxpayers without computers the opportunity to file a simple return at a participating tax preparation site. You can find the list of documents you need to bring to take advantage of this on the IRS website.

Taxpayers can also get free assistance if they choose to file their taxes online. Check out this MainStreet roundup for a complete guide to free tax tools!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Morning Deals: Half Off Mrs. Fields Treats

Kristin Colella — Mon, 06 Feb 2012 10:21:37 -0500

NEW YORK (MainStreet) – In honor of Valentine’s Day, Google Offers has a deal today for $50 worth of cookies, brownies and other treats from MrsFields.com for $25. To receive the sweets by Valentine’s Day, you must order by 1 p.m. EST on Wednesday with standard shipping, or by 1 p.m. EST on Feb. 13 if you opt for expedited shipping.

If you’re looking to give your sweetheart a shiny piece of jewelry on Feb. 14, BradsDeals.com is offering a deal on a tanzanite ring in 10K gold with diamonds from Jewelry.com for $129, marked down from $220.26. Just click this link and select the ring, then enter the coupon code BRADSDEALS at checkout. Shipping is free, and it’s not clear when the offer will end.

For today only, BestBuy.com is offering a Gateway 23-inch HD LCD-LED widescreen monitor for $119.99, marked down from $229.99 – a $110 discount. It ships for free.

10 Sleazy Celebrity Endorsements

Joe Mont — Mon, 06 Feb 2012 10:00:27 -0500

BOSTON (MainStreet) -- For as long as there have been celebrities, there have been celebrity endorsements.

Milton Berle introduced America to the mighty men of Texaco (working pumps from "Maine to Mexico"). Mean Joe Greene's spot for Coca-Cola (Stock Quote: KO) is considered a classic. O.J. Simpson dashed through airports for Hertz (Stock Quote: HTZ) long before he made a run for the border in a white Bronco.

Using celebrities has been an effective tool for advertising and marketing efforts. Though perhaps naively so, consumers have tended to trust these familiar faces and transfer likability to things associated with them.

In recent years, however, celebrity endorsements have become even more manipulative and, one could argue, sleazy. When it comes to taking shopping or financial cues from the rich and famous, buyer beware.

The Federal Trade Commission cracked down on "mommy bloggers" who failed to disclose the free swag they collected for their glowing reviews. But, despite general guidelines for what crosses the line, celebrity tweets haven't been nearly as scrutinized by that agency or other official watchdogs.

When 50 Cent hyped a headphone company, H&H Imports, on Twitter, what his 3.8 million followers didn't know is that it had more to do with his stock portfolio than the product. The penny stock's price spike earned him nearly $10 million, on paper at least.

The Kardashian clan's Twitter feed is a steady stream of paid-for name dropping.

Ashton Kutcher has been in hot water twice because of his promotional acumen. CBS slapped him on the wrist (ever so gently) when logo stickers for tech companies he invests in were stuck on a laptop and thereby prominent throughout a scene on his sitcom Two and a Half Men.

When Details magazine had him "guest edit" an issue, he used the opportunity to pimp some of those same companies -- among them FlipBoard and Foursquare. The FTC was prompted to issue a statement (a tweet, actually) to tell critics they had no intention of looking into the matter.

Sleazy, by definition, describes an endorsement deal made by pop star Ke$ha: For her "Get Sleazy" tour, she inked a deal with LifeStyles Condoms and the company went so far as to make a promotional line with her face on the wrapper (something that, with apologies to Woody Allen, might help more than thinking about baseball).

Bob Eubanks, who used to host the The Newlywed Game, was in an pickle back in the '90s when his paid testimonial for a 900-number dating service was used to help bilk millions from investors (he was never blamed directly by investigators). Cybill Shepherd heeded the advice "take the money and run" when she took a paid gig as spokeswoman for the Beef Industry Council in 1987. It was later revealed that she was actually a vegetarian.

The problem with celebrity endorsements is twofold. First, companies can mask their own dubious propositions by letting a popular, trusted personality do the dirty work for them.

The other issue is that reputable companies can't control their celebrity mouthpieces outside the soundstage. Tiger Woods' infidelity was a disaster for all involved with his "brand." Regardless of final legal dispositions, sports heroes Ben Roethlisberger and Kobe Bryant were still accused rapists, bad news for those banking on them at the time of allegations.

When it comes to commercials and endorsements, not all celebrities are created equal.

A study released last year by advertising analysts at Ace Metrix, Celebrity Advertisements: Exposing a Myth of Advertising Effectiveness, tested more than 2,600 television ads over the course of 2010 and found less than 12% of ads using celebrities "exceeded a 10% lift versus average industry norms" -- in other words, benefited from the association -- and nearly 20% of celebrity ads yielded "negative lift scores." "This research proves unequivocally that, contrary to popular belief, the investment in a celebrity in TV advertising is very rarely worthwhile," CEO Peter Daboll said.

The underperforming celebrities that year included Tiger Woods (23% less effective than average), Lance Armstrong, Kenny Mayne, Dale Earnhardt Jr. and Donald Trump. Celebrities who created the most "life" included, as one might expect, Oprah Winfrey and, more surprising, filmmaker Ed Burns and former Rocky nemesis Carl Weathers.

Despite those findings, companies still flock to celebrities to help put a shine on their products and services, and the famous are often quite mercenary in their approach -- willing to risk reputation if the price is right.

Here are 10 examples of celebrity endorsements that raised eyebrows, if not came across as flat-out sleazy.

Glenn Beck

Even fans of conservative talk show host and author Glenn Beck would probably concede that he can be -- to put it mildly -- a bit of an alarmist.

Among his many conspiracy theories and doomsday scenarios is a prediction of a total economic collapse, precipitated by the collapse of the U.S. dollar and hyperinflation that would put the billion-dollar bills of Zimbabwe to shame.

But owning gold bullion isn't enough to save you. On multiple occasions, Beck warned his audience that the government, thanks to an order dating back to FDR, had the power to seize most gold from you if it so desired. Exempt from its clutches, however, are antique and collectible coins, he explained. So any survivalist worth their year's supply of Spam and bottled water knows only gold coins are worth stockpiling.

Beck's talking points match up almost word-for-word with the sales pitch used by one of his ongoing sponsors, Goldline International, a company that also uses him as a paid endorser.

On Nov. 1, Goldline executives and salespeople were charged with 19 criminal counts by the Santa Monica, Calif., City Attorney's Office, which worked with the Los Angeles County District Attorney's Office on the case.

Founded in 1960, Goldline is based in Santa Monica and has more than 400 employees and annual sales exceeding $500 million.

The complaint charged that "Goldline runs a bait-and-switch operation in which customers, seeking to invest in gold bullion, are switched to highly overpriced coins by using false and misleading claims."

Among the tactics cited by investigators is "training salespeople to induce in customers fear of government confiscation of bullion and to tell customers that the overpriced coins were exempt from such confiscation." Sound familiar? (In fairness, there was a Depression-era order intended to stabilize the dollar and prevent a run on banks; only one prosecution ever resulted and it is debatable it could still be enforced, given the end of the gold standard).

Among the alleged acts of false advertising: "stating that the European coins they were promoting could be 'liquidated privately'; offering gold bullion for sale, in commercials and on Goldline's Web site, with no intention of selling it; stating that bullion could be 'purchased online' with a button on its Web site, when it could not be purchased online; and referring to the European coins they were promoting as 'rare.'"

"The so-called bait-and-switch allegation is preposterous because bullion accounts for more than 40% of the ounces of gold sold by the company during the past year," Brian Crumbaker, Goldline's executive vice president, said in a statement, countering what he called "numerous errors."

Beck continues to endorse and publicly defend the company, as do several other conservative pundits touted on the Web site with the tagline "Credibility: the most influential voices of today trust Goldline."

"Credibility" might not be the word that comes to mind for those inclined to think Beck's Chicken Little rhetoric about the economy had a profit motive.

Paula Deen

TV cooking show queen Paula Deen is renowned for her love of all things deep-fried and pushes unhealthy recipes soaked with butter and sugar, but kept her own battle with Type 2 diabetes a secret -- at least until drug company Novo Nordisk (Stock Quote: NVO) cut a big enough check for her to break her silence.

That the revelation coincided with a deal to shill for the injectable prescription drug Victoza opened her up to criticism about the "unhealthy" fare she has cooked, served and taught throughout her career as a restaurateur and media personality. For those so bent out of shape, we might be inclined to offer two words: "portion control." Just because someone on television cooks with caloric abandon doesn't mean you have to eat it, and certainly not in excess. After all, Deen is a TV star, not a doctor.

That's what we might have said, anyway, until it was revealed she was diagnosed three years ago.

We, of course, don't know what Deen was thinking when she decided to accept the Victoza deal. But here's how it looks: She kept slinging bad-for-you food for years, despite knowing firsthand the potential folly of such a diet, and only decided to go public when a big enough check was written. The delay meant no distractions from her lucrative brand by being recast as a kale-eating, soy-drinking sellout.

Let's make a comparison: The host of a TV show, well-known for being a heavy smoker, is diagnosed with lung cancer, but hides that fact and continues to keep promoting tobacco products. Then a drug company pays him handsomely to be the face of a new cancer drug and offer online advice, including "Don't worry, its fine to smoke just a few a day" as long as you use our product.

From a PR perspective, Deen's deal has been a recipe for disaster.

The Megaupload All-Stars

There's a famous exchange, though probably apocryphal, attributed to Winston Churchill:

"Madam, would you sleep with me for 5 million pounds?" he allegedly asked a socialite, who initially seemed to rather like the idea. Then he changed the offer to a mere five pound note. "What kind of woman do you think I am?" she snapped.

"Madam, we've already established that," was the response. "Now we are haggling about the price."

Regarding celebrities Will.i.am, P. Diddy, Lil John, Alicia Keys, Chris Brown, Kanye West, The Game, Mary J. Blige, Kim Kardashian, Macy Gray and Jamie Foxx, we may now understand that, for them, it was also about the price.

In December, in the days before government officials pulled the plug on file-sharing service Megaupload on charges it facilitated piracy, the company released a promotional video with testimonials from these and other celebrities.

In fairness, it is not known if they were paid, or how much. Amid spin control (after record labels were able to temporarily pull the video from YouTube) there were claims that not all of the featured performers authorized their inclusion. Barring editing trickery, the entertainers are certainly on camera, mentioning Megaupload by name.

One wonders why they would think it was a good idea to align themselves with Kim Schmitz, the slobbish sleazebag whose disposable identities have included the name "Kim Dotcom." More importantly, how much did it cost to have them betray their colleagues in the entertainment industry?

What did they think Megaupload was being used for? Fortune 500 companies using it to share documents among global offices? Far more likely is that traffic was split between people sharing porn and stealing media.

Even if you argue that SOPA and other anti-piracy efforts go too far, think of it from the celebrity perspective. Every song or movie shared illegally takes money out of not only their pockets, but the pockets of many others in their industry. Maybe A-listers are rich enough not to care, but couldn't they be bothered to think about their colleagues?

Montel Williams

When he hosted a talk show bearing his name in the 1990s, Montel Williams had a reputation for being a blunt, no-nonsense kind of guy.

A Navy veteran, he portrayed himself as a man of honor and advocated for the oppressed, especially when it came to issues facing youths. He remains a popular motivational speaker and author, and post-talk show, Williams has lent his name to some admirable causes, including the Partnership for Prescription Assistance, an organization spearheaded by leading pharmaceutical companies that helps financially strapped patients get free or heavily discounted medications.

Less laudable is his TV commercial appearances and website endorsements for businesses such as Money Mutual, a Las Vegas-based "payday" loan facilitator that works with more than 60 lenders throughout the country.

On its website, there is a section called "Why is Montel Williams endorsing this site?"

"Montel Williams has endorsed MoneyMutual to provide access to short-term cash loans to people who have no other alternatives," it says. "Montel takes pride in being able to provide people with information to help them live better physically, spiritually, financially and emotionally. Montel understands that people have unexpected and needed expenses ... sometimes difficult to pay due to lack of funds or credit. Rather than bounce a check, or receive late-payment penalties, Montel believes that a short-term loan from MoneyMutual's network of participating lenders can provide the immediate assistance to avoid costly fees."

There are of course some who can responsibly take advantage of payday loans and understand the risk and costs associated with them. They can be a helpful financial tool. MoneyMutual, however, avoids stating directly what borrowers can expect to pay in fees and interest.

"Since MoneyMutual is not a lender, we are not able to provide or advertise the actual terms, rates, annual percentage rates or fees associated with the loan you may receive," its site says. "The reason for this is that the terms, rates, APRs and fees vary from lender to lender."

That could lead to a not-so-pleasant surprise for borrowers.

The advocacy group Consumers Union, parent of Consumer Reports, has warned that short-term loans of this type have been found to require as much as $17.50 in fees for every $100 borrowed and the interest rates can amount as much as 911% for a one-week loan.

Not all lenders may gouge to that degree, and many states have imposed caps and restrictions.

Williams, as someone familiar with the daytime TV demographic, certainly knows that many of those targeted by the MoneyMutual ads are probably not home by choice. Out of work, ill or elderly, they are the folks most likely to be looking for an emergency fix for their finances and the ones most likely to dig even more of a deep, expensive hole.

It is all the more more craven given that the inspirational, you-can-do-it message Williams has built a career on is now used to push a fast-money strategy that could do long-term damage if not used responsibly.

Jimmy Johnson

As a football coach -- especially as the brash, good ol' boy who led the Miami Hurricanes and Dallas Cowboys -- Jimmy Johnson was never shy about voicing his opinions. As a Fox (Stock Quote: NWS) Network football analyst, he continues to be an opinionated, polarizing figure.

Apparently, what allows him to be so colorful is a lack of shame. How else to explain his endorsement deal with ExtenZe, an herbal supplement billed as "natural male enhancement."

The ads use various euphemisms to get around actually saying "larger penis." That might have something to do with a 2006 fine of $300,000 levied by the Orange County, Calif., District Attorney's Office for false advertising, notable an inability to support claims it could grow the appendage in question by nearly a third its size. Even an ingredient known to botanists as "horny goat weed" may not be able to live up to that promise.

Despite the occasional class-action suit and the embarrassment most of us would feel to be telling America we are a proud user of such a supplement, Johnson seems at ease with his role.

He has described himself as an ""an unabashed user" and, in one commercial boasts: "Most men want to perform the best they can in just about everything ... Go long with ExtenZe. I do."

Some things just cannot be unseen or unheard.

The Kardashians

When they are not pimping out their tweets, the Kardashian family is apparently always on the hunt for unique business opportunities to fit their brand.

So, of course, they turned to the financial services industry.

The late 2010 launch of the Kardashian Kard, a prepaid debit card bearing the image of the three reality-show sisters, was a disaster from the start and a move even these sirens of sleaze should have been smart enough to avoid.

Produced by Minnesota-based University National Bank, the card was notable for having an upfront fee of $59.95 for six months and $99.95 for a dozen. After that there would be a $7.95 monthly fee and a host of other charges (a $1 fee to check the balance, $1.50 to speak with customer service, $6 to cancel the card).

"The family is marketing a dangerous financial fantasy," Connecticut Attorney General Richard Blumenthal (now a U.S. senator) said in a statement at the time of the card's launch. "Ironically, the Kardashian Kard will distance consumers from the financial abundance key to the Kardashian's lifestyle. Consumers lose money before they can use it with this card."

The Kardashians were shocked, shocked, I tell ya.

As negative news stories mounted, their lawyer drafted the following bit of spin to terminate the whole arrangement (surely disappointing the whole 250 people who'd actually signed up by that time):

"The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults," he wrote in a letter to the bank that was conveniently copied to Blumenthal. "They have been successful in doing so because they are recognized as honest, ethical and fun-loving individuals who are kind and caring to others. Unfortunately, the negative spotlight turned on the Kardashians as a result of the attorney general's comments and actions threatens everything for which they have worked."

So, to recap, the girls and their "people" jump on a chance at a quick buck, take heat, renege on that agreement and then can't resist a final sarcastic dig at a public official for having ... OMG ... the audacity to point out their name was on a product ripping people off with fees more than 10 times the national average.

Hulk Hogan/Troy Aikman

Hulk Hogan, perhaps the most famous pro wrestler of all time, has an undeniable blue-collar appeal. Ditto for his co-star in recent Rent-A-Center commercials, Troy Aikman, former quarterback of the Dallas Cowboys.

We are not going to pretend athletes -- real or make-believe -- should be held up as having particularly altruistic motivations. But still we have to wonder why, given all the endorsement opportunities they might have, they aren't more picky about the businesses they are associated with.

Rent-A-Center is hardly a fly-by-night operation. In business since 1986, it owns and operates more than 3,000 stores in 50 states, Washington, D.C., Canada, and Puerto Rico.

What gets the goat of many consumer advocates, however, is that its business model -- get that TV, computer or sofa you want for easy weekly payments -- encourages people to impulse-buy their way to a very bad loan, one with a triple-digit APR. That big-screen TV could end up costing you twice as much at the end of a contract, and that's not even including depreciation and the fact that better, less-expensive models may hit shelves before it's paid off. If it gets paid off. The company's own data show only one-fourth of customers actually complete a purchase.

Last year, Rent-A-Center agreed to a settlement with the attorney general of Washington state over its collection tactics. The company denied the state's allegations but agreed to a list of restrictions on its practices.

Among the accusations were "cussing at customers, pounding on doors, peering in windows and threatening arrest." The state presented testimony from customers who said employees seeking to collect on debt went so far as to attempt to kick in the door of a couple's home and told an 11-year-old autistic girl being baby-sat that her mom could be jailed for theft.

If you need a couch for two weeks between moves, great. But the rent-to-own options are financially reckless and targeted to a low-income audience. And that's something Hogan and Aikman, successful businessmen, should know better than to push on their fan base.

Suze Orman

Most people wouldn't want their doctor to prescribe a medication in which they have a financial interest.

Sure, the doctor may have faith in that particular pill and be concerned only about your well-being, but the appearance of a conflict of interest is troubling.

That, in a nutshell, is why so many folks are lambasting personal finance expert/author/TV personality Suze Orman.

Orman is another celebrity promoting a prepaid debit card.

The product, The Approved Prepaid MasterCard (Stock Quote: MA), does, in her defense, have lower fees than many competitors -- $3 initially, $3 a month, $2 to use ATMs and roughly $3.50 to reload it via Western Union (Stock Quote: WU) or a similar service. Included is "unlimited free online access" to TransUnion credit scores, reports and monitoring for one year.

There is also something called "The Credit Project" -- the ability to anonymously share transaction information with TransUnion (Stock Quote: TRUN) so "they may help us understand whether including this data in your credit report would impact your access to credit products." What that means, exactly, for cardholders is fairly vague. "It is my hope that this data sharing will show that responsible use of The Approved Card can help predict those who deserve credit for managing their money well and spending responsibly," Orman says.

The marketing materials make this whole offering seem downright magical.

"The Approved Card isn't just another financial product or a normal prepaid card," a press release reads, with oppressive use of the shift key and caps lock. "It's the start of a financial revolution to enable Americans to empower themselves. Orman, the longtime financial crusader, is inviting consumers to join her 'PEOPLE FIRST' movement with her Approved Card. Suze didn't just endorse this card -- SHE CREATED IT from the ground up to change the way people think about and use their cash."

Forgetting, perhaps, that there are these things called "savings accounts," the card is also touted as an ideal way to create an emergency fund.

So back to that doctor analogy. The card seems fair enough, really, as such things go. Not a great deal, but not a horrible one either. It just seems wrong for a person so many people look to for financial advice to profit by joining forces with a credit card company and selling a branded financial product. The touted benefits -- alternating between vagueness and hyperbole -- do little to reduce the bad taste.

Dionne Warwick

Burt Bacharach's occasional songbird helped secure a place in history for two of the sleaziest business trends in modern times: pay-per-minute phone lines and late-night infomercials.

Warwick was the original face of The Psychic Friends Network throughout most of the 1990s. For about $3.99 a minute, callers to a "1-900" line were connected to purportedly genuine psychics available to offer them answers, advice and affirmation.

Two predictions that the team of soothsayers seem to have missed: that her cousin, Whitney Houston, should be kept away from any and all things related to either Bobby Brown and crack; and that by 1998 the company would go bankrupt.

That bankruptcy came after its owner, Inphomation Communications, racked up $26 million in liabilities compared with a mere $1.2 million in assets.

The service is now back, but without Warwick. Focused more on online conferencing than traditional phone lines, the new ownership had initially tapped actress Vivica A. Fox as its celebrity endorser. But, in a move its prognosticators also failed to see coming, Fox later claimed that use of all those commercials, testimonials and headshots she shot, many of which had already aired, were not "authorized." Perhaps a crystal ball revealed that the gig was a credibility-shredding way to grab a paycheck.

Perhaps, back in the day, Warwick really was a true believer and not just an accomplice to the hundreds of dollars conned out of naive, desperate callers. The new site does, after all, promise that, "All of our psychics undergo a rigid screening to identify those who really have the psychic gift, as well as to find those psychics who truly care for the well-being of the clients, for whom they do their readings."

Our guess, however, is that it was bank statements, not minds, that were typically being read.

Lil Wayne

No offense to Lil Wayne, but if we are skeptical of a debit card offered by Suze Orman there's little chance we'll plunk our cash into the one he peddles.

His Young Money Card, issued by Discover Financial Services (Stock Quote: DFS), includes a variety of interesting features: direct deposit, online bill pay, online budgeting tools, the ability to reload at retail locations throughout the nation, a cash-back partnership with the Ebates website; and, perhaps appropriate given Lil Wayne's drug-related troubles with the law, a "prescription, imaging and lab test savings card." A portion of every card sold will benefit nonprofit organizations such as Lil Wayne's One Family Foundation.

Ah yes, there are also fees. The card's purchase price is $6.95 with a $3.95 monthly maintenance fee. ATM withdrawals cost $2 and the reload fee is $4.95.

This week, Comedian George Lopez announced that he too has a debit card deal: a partnership with Mango Financial's Mango Prepaid Card.

"This is not only an opportunity to promote a great company with great products, but also a chance to make a difference in people's lives," Lopez says in a statement. "My grandparents, a factory worker and construction worker, who raised me, taught me the importance of hard work and financial discipline to reach my goals. I'm proud to support a company that has made it easy and affordable for people to manage and save their money to help them realize their goals."

The problem with Lil Wayne, and we'll add in Lopez and Orman as well, is that celebrities seem intent on selling fee-loaded debit cards and making it sound like they are doing society a favor.

For Lil Wayne especially, his card is aimed squarely at people who otherwise lack credit or, perhaps, even a bank account. Making money at their expense, under the pretense of helping them, is as hypocritical as it is sleazy.

By the way, if you ever run into hip-hop mogul, philanthropist and founder of the RushCard Russell Simmons, don't call him a "celebrity endorser." In an "open letter" issued to the financial press last month, he took umbrage to such a description.

"In recent weeks, coverage of prepaid debit cards launched by Suze Orman and Lil Wayne has repeatedly portrayed me as a 'celebrity endorser,' he wrote. "Some of these stories have gone so far as to depict my RushCard business in the same light as the ill-fated Kardasian Kard. The truth is, eight years ago I invested millions of dollars, putting my reputation on the line to found UniRush LLC. I created the first prepaid debit card account, requiring no linkages whatsoever to a consumer checking account ... I created this industry because my customers had been left behind by the banking industry."

"What did I do to earn the title of 'celebrity endorser'?" he asked. "Richard Branson endlessly and lovingly promotes his airline's cellphones, cable channels and spaceships, as he once did his retail and music empires; is he a 'celebrity endorser'? How about Mark Zuckerberg, the 'celebrity endorser' of Facebook? Success certainly breeds celebrity, as it has for Branson and Zuckerberg. Yet neither of these astute businessmen is categorized as a celebrity endorser. I submit this is because each is an innovator and a creator, having taken thousands of risks and enduring the pitfalls that trailblazers brazenly face. Just as I did, when I created an industry with an uncertain business model and no path to earning a reasonable return."

A celebrity endorsement is a great way to get some visibility, but many companies can get the press with a different kind of sleaze. Check out MainStreet's look at For Super Bowl Advertisers, Rejection Doesn't Always Hurt!

7 Dos and Don’ts of a Professional Website

Jeanine Skowronski — Mon, 06 Feb 2012 07:00:00 -0500

Having your own website can be a boon for job hunters as more and more companies turn away from traditional resumes and vet candidates based on their online presence. Here’s how to create one the right way.

Valentine's Day: 10 Gifts on a Budget

Kerri Fivecoat-Campbell — Sun, 05 Feb 2012 07:00:00 -0500

Every person has their own tastes, but Valentine’s Day can be a great time to use a less-clichéd gift to say "I love you."

12 Neighborhoods Where Locals Want to Live

Matt Brownell — Sat, 04 Feb 2012 07:00:00 -0500

Moving to a new city? Get the inside scoop on where the locals are moving.

Glassdoor Uses Facebook Data to Help You Find a Job

Seth Fiegerman — Fri, 03 Feb 2012 17:50:00 -0500

NEW YORK (MainStreet) — There are plenty of ways that Facebook can end up costing you a job, but one new service hopes to turn Facebook into a tool for landing a job.

Employment website Glassdoor.com added a feature to its job search engine this week called Inside Connections, which lets job hunters use their Facebook contacts to find out if they know someone working at a company they’re interested in. All the user has to do is allow Glasssdoor access to his or her Facebook account, then each time he or she searches through Glassdoor’s directory of companies, the site will display any Facebook contacts who either currently work there or used to.

By referencing all the social data Facebook has on its users’ employment histories, Glassdoor is making itself a bit more like LinkedIn. Not only can job hunters find details about companies and job postings in their industries, but they can also find out how to get their foot in the door.

As MainStreet has reported before, half the battle of getting your resume noticed is finding a way to get it in the hands of an actual person at the company rather than a general human resources e-mail address. Glassdoor’s feature just made that fight a little bit easier.

Credit Q&A: Are Rewards Points Taxable?

Jeanine Skowronski — Fri, 03 Feb 2012 16:58:17 -0500

Q: I heard that Citi Bank sent 1099 forms to cardholders who earned frequent-flier miles through a special promotion. Are my credit card rewards points taxable?

A: Generally speaking, your rewards points aren’t going to be taxable if you’ve earned them by charging purchases to your credit card.

As MainStreet has previously reported, rewards programs are essentially structured as a rebate and are not going to require you to pay taxes on the rewards at the end of the year. However, extra points or dollars awarded as a sign-on bonus that has no spending threshold attached to it are a different story should their value total $600 or more.

In the instance with Citi (Stock Quote: C), the 1099 recipients had received more than 25,000 frequent-flier miles with American Airlines (Stock Quote: AMR) – equal to $645 of taxable income – when they opened a checking or savings account with the bank last year.

“When frequent-flier miles are provided as a premium for opening a financial account, it can be a taxable situation subject to reporting under current law,” says IRS spokeswoman Michelle Eldridge.

As such, it’s important that cardholders pay attention to the size of the bonus and the structure of the promotional campaigns before they take advantage of them.

Additionally, “if taxpayers have questions about the information they receive on a Form 1099, they should follow up with the issuer or their tax professional to resolve any questions about valuation, timing or other issues regarding the income reported,” Eldridge says.

Want to know what affects your credit score? Email your questions to MainStreet at editors@mainstreet.com.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

19 Uses for Baking Soda, Dryer Sheets & Beer

MoneyTalksNews — Fri, 03 Feb 2012 14:30:00 -0500

By Angela Colley

Cleaning products and personal care items once consumed a sizable chunk of my discretionary income. But now the cabinet under my sink only has trash bags, a bottle of vinegar, and a box of baking soda.

Household items like vinegar, baking soda, salt, and even beer can replace many of the products you use to clean, do laundry, garden, or take care of yourself. And they’re cheaper to boot. Here are 19 ways I’ve found to replace expensive store-bought chemicals…

Around the house…

1. Clean glass

Mix a quarter-cup of white vinegar and 3 cups of water in a spray bottle, and you have a better glass cleaner than any commercial product you could buy. Just spray it on, wipe it down with a piece of newspaper, and you’re done!

2. Clean porcelain and chrome

I use the same vinegar mixture to clean my bathroom. The vinegar is mild enough that it won’t etch the porcelain on my vanity, and it makes the chrome faucets shine.

3. Scrub stuck-on food and stains

Baking soda works as an alternative to abrasive cleaners like Comet. You can sprinkle dry baking soda on stuck-on food, or combine the baking soda with a little water to make a softer scrub for bathtubs and shower tiles.

4. Deodorize carpet

Sprinkling baking soda on carpet removes odors. Cover the entire area with a light sprinkling and let it sit for 30 minutes to an hour, then vacuum it up. The baking soda will absorb the smell. It works great on pet smells and other mild odors.

5. Mop tile floors

I’m in love with my Swiffer Wet Mop – just not the chemical fest cleaner that comes with it. Instead, I mix a half-cup of vinegar and warm water in a spray bottle and spritz it as I mop. It doesn’t smell great at first, but the vinegar mixture is tough enough to remove stains and the smell disappears as it dries.

6. Clean a cast-iron skillet

Not being able to use dish soap or heavy cleaners on my cast-iron skillet gets challenging, especially when the bottom is covered with stuck-on food. I sprinkle salt over the stuck-on bits and use a plastic brush to clean the pan. The salt is gritty enough to force the food bits free, but soft enough that it hasn’t damaged my pan.

7. Remove stains from a glass coffee pot

Coffee stains everything, especially the inside of the coffee pot. If the bottom of your pot gets gunky, pour in about a quarter-cup of salt, five or six ice cubes, and some water. Then (gently) swirl the mixture around. The salt and ice will scrub the pot and lift the stains. Just make sure you wash the coffee pot before you use it again.

8. Polish metal

The acidity of beer actually polishes metal. Rubbing copper-bottom or aluminum pans down with some flat beer removes tarnish and restores shine. Beer also works on baking sheets and cupcake tins.

Laundry…

9. Keep your clothes from fading

My dry cleaner taught me this trick when I brought in a faded sweater: Soak new clothes in 1 cup of white vinegar and water for 10 to 30 minutes before you wash them for the first time. The vinegar removes excess dye and helps lock the color in, so it won’t bleed out and fade in the wash cycle.

10. Clear yellowed and sweat stains

White clothes are a pain. Sweat in them at all and you get stains. Leave them in the closet for too long, and they start to yellow. Thankfully, salt can remove the discoloration. Mix a cup of salt in a sink full of warm water and soak the stained area for 30 minutes. Then wash as normal.

11. Neutralize odors

Adding a half-cup of baking soda to the beginning of a wash cycle will remove strong odors on your clothes. Just pour the baking soda in, add some laundry detergent, and wash as normal. The baking soda even worked on my mildewed towels.

12. Keep clothes smelling fresh

After you dry your clothes, save the dryer sheet and put it in your drawer. The dryer sheet will keep releasing that just-washed smell for a couple of weeks inside the drawers, keeping your clothes smelling fresh longer.

Personal care…

13. Exfoliate your skin

I haven’t bought a commercial facial scrub in years. Instead, I mix a small amount of baking soda with a bit of water in my hand, apply the mix to my face, and scrub gently. My skin is softer, and baking soda is a lot cheaper than exfoliates.

14. Restore shine to hair

My stylist uses a “beer rinse” once a week. She swears the B-vitamins in beer adds shine to her hair. I tried it, and my hair definitely looked better (even if it smelled a little funky). After shampooing, pour half a can of beer over your wet hair and let it sit for a few minutes, then rinse with cold water.

15. Calm frizzy hair

Humidity is not kind to hair. Some days, I look like I stuck my finger in a light socket. So I keep dryer sheets in my car. Seriously. Run a dryer sheet over your hair and it will stop fly-aways and reduce frizz.

16. Soak your feet

A half-cup of salt mixed with warm water works as a foot soak. Add the mixture to a shallow bowl and dip your toes in. After 10 minutes of soaking, you’ll have soft, soothed feet.

Outdoors…

17. Store fresh flowers

Fresh-cut flowers start to die the second you put them in a vase. You could buy those expensive food pellets to keep them fresh, or you could just pour a quarter-cup of vinegar in the vase. The vinegar seals the stems and keeps cut flowers looking fresh for several days.

18. Cure brown spots

Beer has an acidity that works like magic in your yard. Pour a cup of beer over a brown spot in your yard, and the acid will promote grass growth.

19. Wipe bugs off your windshield

I had bug guts stuck to my windshield after I washed it by hand. To remove them, I pulled the used dryer sheet out of the laundry and wiped the car down. The dryer sheet pulled all the bugs right off.

I’ve found more than a few uses for vinegar in my house, but there are still hundreds more I haven’t tried. Check out Household Products Vinegar Can Replace for more ideas. And if you want some more cleaning tips, check out 6 Tips and 14 Products for Cleaning Tough Stains.

How to Use Your Credit Card to Save on Tax Prep

Jeanine Skowronski — Fri, 03 Feb 2012 14:13:01 -0500

NEW YORK (MainStreet) — Valentine’s Day gifts aren’t the only things your credit card can help you save money on – you can also get a discount on your favorite tax software or tax preparation service. Here’s a roundup of some of the better tax deals your credit card can buy you.

Discover (Stock Quote: DFM) cardholders can get 20% cash back on purchases made at H&R Block through ShopDiscover, and they can also get 15% cash back on TurboTax software through the online mall as well.

Citi (Stock Quote: C) is giving cardholders 10% cash back through its Bonus Cash Center on H&R Block At Home, and is offering a coupon code to get 15% off on online tax preparation with the preparer. Citi also offers 8% cash back on TurboTax software.

Meanwhile, Chase (Stock Quote: JPM) cardholders can get 15 extra rewards points per dollar spent on H&R Block At Home software or eight extra points per dollar spent on TurboTax software through its Ultimate Rewards Mall.

Bank of America (Stock Quote: BAC) is offering nine extra points per dollar spent on TurboTax purchases through its WorldPoints Mall.

American Express (Stock Quote: AXP) is offering cardholders the opportunity to get 15% off on H&R Block software and 10% off on TurboTax software in its Deal Center. H&R Block purchases also earn cardholders 15% cash back that will be donated to the United Way.

MasterCard (Stock Quote: MC) doesn’t have any partnerships with tax preparers listed in its online marketplace, but is featuring a few LivingSocial deals on tax preparation services that entitle cardholders to a varied number of extra rewards points.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

With Rates This Low, Should You Refinance Again?

Brian O'Connell — Fri, 03 Feb 2012 14:02:10 -0500

NEW YORK (MainStreet) – When it comes to mortgage rates, homeowners have been watching just how low they can go and reacting accordingly to historically rock-bottom interest rates.

When rates hit 5%, the rush to refinance was sizeable. When rates fell to 4.5%, the rush to refinance was more substantial. When rates fell to 4%, the rush to refinance was downright staggering. And here we are again, with the average 30-year fixed-rate mortgage falling another rung on the ladder, to 3.87%.

With rates at “an all-time record low,” according to Freddie Mac, the rush to refinance may well reach stampede status, especially with good news on jobs (this morning's announcement that the unemployment rate fell to 8.3%), and more bullish sentiment elsewhere on the economic front.

Refinancing, even if you just did it six or nine months ago, certainly makes plenty of financial sense these days. Freddie Mac is out with a report stating that 49% of homeowners who refinanced their mortgages during the fourth quarter of 2011 reduced the principal balance on their mortgages – the highest percentage in 26 years.

The study also shows that the median interest rate reduction was 1.4%, a 26% savings on mortgage interest rates, and during the first year of the newly refinanced loan the average dollar savings totaled $2,700 on a $200,000 home loan.

“Savvy homeowners are taking advantage of some of the lowest fixed-rate [mortgages] in more than 60 years to lock in interest savings,” says Frank Nothaft, vice president and chief economist at Freddie Mac.

So even if you just refinanced, the benefits of doing so again may well outweigh standing pat. Let’s look at some at some reasons why it may be a good idea, and why it may not be. Here are the pros:

Not only will you reduce your mortgage rate, you’ll reduce the principal balance on your home mortgage.
More cash in your wallet allows you to use that money to spend down other debt, pay off your house more quickly, or add to your retirement savings.
If you use the extra money to pay down debt, you can improve your credit rating – thus making future loans even more affordable.

And for the contrarians, here are the cons of refinancing again:

Every time you refinance you “reset” your mortgage payment clock to 30 years. So it may, depending on your payment volume, take you that much longer to satisfy your loan obligation.
Any loan process with a bank or mortgage lender is akin to root canal. Be prepared for more paperwork, more negotiations, and more scrutiny on your credit rating.
You’ll be paying fees and closing costs to refinance, and that will cut into your savings.

There’s a reality check involved here, too.

Banks and lenders won’t be offering 3.87% mortgage interest rate deals to just anybody. You’ll need platinum-level credit – think a FICO score of 720 and above. If that’s you, great, you stand the best chance of getting the low rates and saving money on your mortgages. But the further down the FICO scale you slide, the higher your interest will be – and it won’t be 3.87%.

To get a good grip on where you stand refinancing-wise, use BankingMyWay’s Refinance Interest Savings calculator. Even in you refinanced in the last year, the calculator can tell you how much interest you can save if you refinance your mortgage again.

Beyond that, figure out where you are, house-wise. One rule of thumb is that if you plan on moving within five years, refinancing is a bad idea (the real savings are usually found at the back end of the deal, and the front-end savings are chewed up by closing costs and fees).

But if you have good credit and plan on being around a while, there’s no reason you can’t take advantage of record-low mortgage rates.

After all, you just don’t know if you’ll ever see them again.

Depending on your situation, you may be eligible for a bit of government help in your refinancing efforts. Check out MainStreet's rundown of President Obama's proposal to know what to expect!

5 Hopeful Signs in the January Jobs Report

Seth Fiegerman — Fri, 03 Feb 2012 13:06:30 -0500

NEW YORK (MainStreet) — The U.S. economy added 243,000 jobs in January, beating expectations by about 100,000 jobs, and pushing the unemployment rate down 0.2 percentage points to 8.3%. Even beyond these baseline improvements, there are plenty of reasons to be happy with the latest jobs report.

Employment-to-Population Rate Rises

While the unemployment rate is the standard measurement people look to when assessing the strength of the labor market, it doesn’t take into account those who are perfectly able and willing to work but have given up looking for jobs. For that, the best number to turn to is the employment-to-population ratio, which takes into account all working-age adults. The percentage of the population that was employed stood at 58.5%, an increase of 0.1% from the same month in 2011. That may not seem like much of an improvement, but during that time, the population has increased by roughly 3.5 million, which means more than that many jobs have been created to keep the employment rate steady.

The Underemployment Rate Drops

Another way to view the health of the labor market is to consider the underemployment rate, which takes into account not only those who are unemployed but those who are only partly employed for economic reasons. That number stood at 15.1% in January, which is certainly still high, but a full percentage point less than what it was the same time one year before.

Construction and Manufacturing Booms

Construction and manufacturing were two of the hardest-hit industries in the recession, but the most recent jobs numbers suggest they are on the mend. The construction industry added 21,000 jobs in January after having added 31,000 the month before. Manufacturing had an even more striking increase, adding 50,000 positions in January.

More Jobs Added in Previous Months

As if the January jobs numbers weren’t good enough, the Bureau of Labor Statistics also issued a revision for the two previous months showing even greater job gains. The new numbers show that there were 203,000 jobs added in December, up from 200,000 originally, and 157,000 jobs added in November, up from 100,000 originally. That’s 60,000 more jobs we didn’t even know we had.

Hourly Earnings Increased

Hourly earnings rose by 4 cents in January to $23.29. That may not be enough to buy a new house, but every pay increase gives the consumer a little more spending power, which in turn fuels the economic recovery.

Looking for a job right now? Find out the five things you shouldn’t mention in an interview so you can land a new gig.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Your MainStreet Money Minute: Feb. 3

Greg Emerson — Fri, 03 Feb 2012 12:00:13 -0500

This week in money: The right way to use debit and the new rules of job hunting.

This Could Be Last Chance for Second Home

Joe Mont — Fri, 03 Feb 2012 11:29:00 -0500

BOSTON (MainStreet) -- Snowbirds looking for leisurely living in sunnier climates are providing a bright spot for the battered housing market.

Each March, the National Association of Realtors assesses the previous year's trends regarding vacation- and investment-home sales. In 2010, those purchases held steady from a year earlier: 10% and 17%, respectively, of transactions.

NAR's analysis of U.S. Census Bureau data show there are 7.9 million vacation homes and 41.6 million investment units in the U.S., compared with 74.8 million owner-occupied homes.

The news may be getting better for those looking to sell or broker second homes. With millions of baby boomers preparing to retire, real estate professionals are optimistic vacation and rental properties will be in even greater demand for the next several years.

NAR also sees good news in that 40.7 million people in the U.S. are between the ages of 50-59 -- a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 43.8 million people are in the primary buying demographic of 40-49 years old, while another 40.4 million are 30-39.

"Even if purchases are delayed due to economic circumstances, the underlying long-term demand -- the desire for purchasing second homes -- remains because people in their 30s and 40s will reach the prime age for buying and will drive the second-home market in coming decades as conditions permit," NAR Chief Economist Lawrence Yun says.

According to NAR, the typical vacation-home buyer in 2010 was 49 years old and had a median household income of $99,500; investment-home buyers had a median age of 45 and earned an average $87,600. All-cash purchases have become prevalent in the second-home market in recent years: 59% of investment buyers paid cash in 2010, as did 36% of vacation-home buyers.

"An interesting trend is showing that people are planning to eventually occupy their vacation homes," says Jennifer DuBois, director of Realtor.com. "Thirty-four percent say they plan to use the property as a primary home in the future. So it's almost like you are buying their retirement home now."

In 2010, 34% of vacation-home buyers said they plan to use the property as a primary home in the future, as did 10% of investment buyers, according to NAR.

For those near-retirees looking to buy a secondary home, there are a few things to consider:

First, make sure you want to invest in a particular city or town. Don't just base your decision on how an area fits with your interests -- sun and swimming, peaceful hiking trails or mountainous ski slopes -- make sure you visit and you can get on board with the investment. Also, make sure you will be able to visit often enough to make the investment worthwhile.

The next crucial step is to estimate what the new home will cost.

According to NAR, the median vacation-home price was $150,000 in 2010, down 11.2% from $169,000 in 2009, while the median investment-home price was $94,000, 10.5% below the $105,000 median in 2009. By contrast, the median primary home price declined just 4.5%, to $176,700, last year from $185,000 in 2009.

Smart buyers -- willing to engage in some research -- may be able to sniff out even better deals.

Second-homebuyers purchased more distressed homes at discounts than buyers of primary residences, according to NAR. Foreclosure or trustee sales accounted for 17% of investment purchases and 11% of vacation-home sales in 2010, compared with 5% of primary purchases.

Those bargains may not last forever, however. Many of the warm-weather regions popular with vacation home buyers are seeing a recovery.

Ten of the nation's local real estate markets that suffered from high foreclosure rates in recent years, eight of which are in Florida, are leading America's housing sector toward a general recovery, according to a Realtor.com report on top "turnaround towns" issued this week.

Among the rebounding communities, based on an increase in median sales price and reduction of existing inventory, were the Florida cities of Miami, Orlando, Sarasota, Naples, Fort Myers-Cape Coral, Punta Gorda and Lakeland-Winter Haven. Also making the list were Phoenix, Ariz., and Boise, Idaho, the former being a destination for retirees seeking dry air and golf courses.

"This is the time of year where older people are often thinking about moving to Florida," DuBois says. "If you have the money and can get the mortgage, interest rates have never been lower ... there are some good opportunities. We're not at peak prices the way we were in 2007, and if you can afford it it's a good time to buy."

Vacation-homebuyers need to decide whether they wish to subsidize their purchase by renting it out when they are not using it.

DuBois makes a pitch for searching out a local real estate agent to help determine the best approach for renting out a home.

"You want to have a local expert on the ground," she says. "You want to make sure that you are aware of any trends that might be happening. A local Realtor can tell you what the average rental is for that level of property based on whether you have a one-bedroom or two-bedroom and, perhaps, even based on the furnishings. You might be somebody who wants to appeal more to families or singles or more to couples. A Realtor can tell you which is more advantageous in the local market."

An alternative is offered by T.J. Mahony, CEO and co-founder of FlipKey, an online vacation rental marketplace.

"Of the folks who have a vacation home, the average person will leave it vacant about 90% of the year," he says. "So they have a beautiful piece of property and nine out of 10 days there is nobody in it. There is obviously a large opportunity to utilize that space better. What we find though is that a very small minority of second-homebuyers actually rent it out to a guest, and when they do it is actually quite profitable."

He says the average FlipKey user earns about $26,000 a year renting out their secondary home.

Mahony says the "No. 1 holdup" preventing more people from renting their homes is concern over having guests they don't know and the threat of damage or theft. He counters those concerns with a survey of his membership that found 94% had either never had an incident, or just a single, minor one.

"People just have to look at their own finances and make sure they are ready for that commitment, because you are doubling your mortgage payments and increasing your taxes," DuBois further advises those looking at a second home. "Be aware if you are going to buy into a community that has [a homeowners association] fee and make sure you realize all the hidden expenses. As far as maintenance goes, is a property manager the right person to go to? Do you want to go to a gated community or someplace that takes care of the outdoor maintenance, or is that something else you are going to be responsible for yourself? The average distance is about six hours away, so that is a plane ride. It will be a substantial commitment."

Taxes also get more complicated and will likely be influenced by how much time you spend under your new roof.

The following tax tips for vacation-homeowners were offered by TurboTax (Stock Quote: INTU):

If you use the property as a second home rather than renting it out, interest on the mortgage is deductible within the same limits as the interest on the mortgage on your first home (at least until Congress decides whether to eliminate or modify all such deductions). You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes and used to acquire or improve the properties.

You can deduct property taxes on your second home. Unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

If you rent the property for 14 or fewer days during the year, you can pocket the rental income tax free. The house is considered a personal residence, so you deduct mortgage interest and property taxes under the standard rules for a second home.

If the home is rented out more than 14 days, all rental income must be reported. Rental expenses are deductible, but proper documentation is needed to differentiate between the time the property is lived in versus rented. If you use the property more than 14 days, or more than 10% of the number of days it is rented, whichever is more, it is considered a personal residence and the rental loss can't be deducted.

If you limit personal use to 14 days or 10%, the vacation home is considered a rental property and up to $25,000 in losses (for example, maintenance costs) may be deductible each year.

Additional tax tips for second-homeowners can be found here on the TurboTax website.

Your Last-Minute Super Bowl Deal Roundup

Matt Brownell — Fri, 03 Feb 2012 11:27:39 -0500

NEW YORK (MainStreet) – There are a number of great deals still available for Super Bowl weekend – some are specifically tied in to the big game, while some will just let you save a little money as you plan out the festivities. Here are a few that caught our eye.

Want to preview the Super Bowl by playing out the Patriots-Giants matchup on your phone? Head over to the Android Market, where Madden NFL 12 is currently just 99 cents, marked down from the usual price of $4.99. It’s not clear how long the price cut will last. If you want other smartphone apps to enhance your Super Bowl experience, check out our roundup of 11 apps for everything from food to trivia.

Most people call up their local pizza joint to order food for the big game, but Burger King wants to change that. To get you in the door, the fast-food chain is offering a free value-sized order of onion rings on Saturday and Sunday. The promotion isn’t good during breakfast hours, and you can only get one order per visit.

You might also be able to get free pizza this weekend at Papa John’s. If the Super Bowl coin toss lands on heads, every Papa Rewards member will get a free large one-topping pizza and a 2-liter bottle of Pepsi Max. You’ll need to enroll in the free rewards program by 6 p.m. EST on Super Bowl Sunday to be eligible for the deal.

Don’t have a TV for your Super Bowl party yet? Best Buy has a 46-inch 1080p LCD TV for just $379.99, marked down from $599.99. Availability varies: It’s available in some stores now, and in other cases you’ll need to have it shipped to your nearest store, so it might not get there in time for the game. If you want to go even bigger, there’s a 55-inch Dynex TV for $599.99, marked down from $799.99.

Fry’s Electronics also has a number of TV deals in its weekly ad, and the products are available almost immediately for free in-store pickup.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Career Q&A: How Do I Ask to Work From Home?

Seth Fiegerman — Fri, 03 Feb 2012 10:38:00 -0500

NEW YORK (MainStreet) — Q: How should I go about asking my boss to let me work from home one or two days a week?

A: Millions of Americans telecommute for work each year, but whether or not you will be allowed to do it depends on the industry you work in, your reputation at the office and your ability to convince your boss that it’s worthwhile.

Those who work jobs that absolutely require them to be there in the flesh every day – whether it be construction or management – will probably have a tough time making the case to telecommute. However, even if you work at an Internet startup or another industry that’s more conducive to working remotely, there’s no guarantee that you’ll be approved to work from home.

“You should get some preliminary information about whether other people in your company have done it and whether it’s working out,” says John A. Challenger, CEO of Challenger Gray & Christmas, a career research firm. If not, chances are your employer won’t be willing to make an exception for you.

From there, it’s important to be honest about how you’re perceived in the office. “If your boss sees you as disorganized and not very self-starting, or if you’ve made mistakes in the past that make you seem less reliable, he may be concerned about your autonomy working from home,” he says. If that’s the case, your best bet is to improve your work performance for several months before approaching your boss about the prospect of telecommuting.

Assuming others telecommute in your office and you do feel confident that your boss knows you’re a hard worker, the trick is to convince him or her that you’ll continue to be a hard worker from home.

“You have to think about what your boss’s concerns might be and think through how to reassure him that what you’re proposing is to everyone’s benefit,” Challenger says. For that reason, he recommends trying some of the following talking points to sweeten the deal:

- Offer to work from home on a trial basis to determine if it’s the best strategy for you and the company.

- Mention that you’ll be available earlier in the day or later at night as needed because you won’t need to commute.

- Highlight your office setup at home, specifically your good Internet and phone coverage.

- Explain how it will improve the quality and quantity of your work.

- Be willing to give up something in exchange if necessary.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

The Social Swipe: How Credit Cards Are Using Social Media

Jeanine Skowronski — Fri, 03 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) — Social media has played a major part in company advertising campaigns and customer service initiatives during the past few years, and 2011 saw several credit card issuers using these networks as product enhancements.

American Express (Stock Quote: AXP) launched its “Link, Like, Love” service – which offers discounts and experiences to cardholders based on their “likes,” interests and social media connections – back in July and followed it up with the Gift Chain in November. This promotion allowed cardholders to earn prizes off of holiday gift purchases that could be shared, in certain instances, with their Facebook friends.)

Earlier this year, Citi (Stock Quote:C) launched a Facebook application allowing cardholders to pool rewards points and put them toward a common goal, such as a family trip or a large charitable donation.

Experts say these promotions will proliferate throughout 2012 since they offer many opportunities that traditional advertising campaigns do not.

“Issuers are going to devote more of their marketing budgets and resources to social media campaigns because they are more cost effective and more easily tracked,” says Curtis Arnold, founder of CardRatings.com. “They allow companies to engage directly with customers and get instantaneous feedback.”

Major issuers acknowledge that social media has become an active part of their business model, but insist their efforts are concentrated in providing a better experience for existing cardholders.

“Acquiring new customers is not the objective of our social media strategy,” says Laura Rossi, a spokeswoman for Chase. “Our social media strategies are designed to build a sense of community and to facilitate interactions with the Chase card brands customers are passionate about.”

While the issuers we spoke with refrained from sharing their next big social media campaigns, they did say more social is on the way in 2012.

“Look for us to continue to roll out a series of never-before innovations in the space that bring even more value to our [card members] and merchants,” says Leslie Berland, senior vice president of digital partnerships and development at American Express.

Ben Woolsey, director of marketing and consumer research with CreditCards.com, expects these promotions to move onto mobile channels as issuers look to capitalize on partnerships they have with wireless providers.
“You’re going to see more apps,” Arnold says.

Customers should also expect Facebook to continue to be a major player.

“These initiatives are a clever way to extrapolate engagement with the brand from someone's familiar social network,” says Robin Carey with SocialMediaToday.com. “Think of it as ‘friends-and-family’ marketing in the Facebook era. Look for more ways that Facebook will become the de facto medium for incentives and social reinforcement.”

As these promotions proliferate, here’s what you should know before participating in them.

It’s All About the Fine Print

Credit card agreements have become known for what’s buried in the fine print, but Arnold says the campaigns that he has seen thus far seem to provide strong incentives for cardholders.

“These campaigns don’t have a downside in terms of the ‘gotchas,’’’ Arnold says, but that doesn’t mean you don’t need to read through their user agreements, he adds.

You should also make sure to check the company’s privacy policy before registering for a promotion that requires you to share personal data.

“Make sure you know where the information is going to go,” says Adam Levin, chairman and founder of Identity Theft 911. You also will want to check if the company intends on sharing anything – whether it’s your email address or your spending data – with anyone else you wouldn’t otherwise want them to share it with.

Take Proper Security Precautions

Anytime you enter your personal information online, including your credit card number, you run the risk of having that information compromised.

To minimize the chance of fraud, Levin suggest making sure you only enter information into encrypted websites, which can be determined by the https:// at the start of a URL or by a small lock at the top of the Web page.
You should also refrain from clicking on links inside the body of the email, Levin says, since hackers are known to send emails under the guise of a legitimate company in an attempt to get people to download malware onto their computers.

Instead, he suggests going to the company website directly to sign up for the promotion. Once you are registered, make sure to check your credit card statements regularly for the campaign’s duration. That way, you can catch any fraudulent charges as soon as they occur, should an actual hack take place.

A Free Sweepstakes Isn’t Always Free

According to Woolsey, the Internal Revenue Service requires taxpayers to report prizes totaling $600 or more when they file their taxes.

Luckily, he says that most social media promotions mirror credit card rewards programs, which are essentially billed as a rebate and are not going to require you to pay taxes on the rewards at the end of the year.

“It’s the structure of the promotion that matters,” he says.

As such, consumers should be aware that a social media sweepstakes that involves, for example, raffling off a free car to one person who “likes” a Facebook page, will require taxes to be paid on the prize.

You can find additional information on what to do should an online data breach occur in this MainStreet article.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

10 Valentine’s Day Gifts Women Will Love

Kristin Colella — Fri, 03 Feb 2012 07:00:00 -0500

Jewelry may be what the ads tell you to give your sweetheart on Feb. 14, but there are other options that may be more appropriate and personal for the special woman in your life.

Details Emerge on White House Housing Plan

Brian O'Connell — Thu, 02 Feb 2012 17:30:00 -0500

NEW YORK (MainStreet) – President Obama's plan to allow struggling homeowners to get back on their feet is taking shape. Some key cornerstones of that plan would allow consumers with poor credit and big mortgage debts to refinance their homes.

The president got into some of the specifics of the plan in a speech yesterday in Falls Church, Va., during which he told the audience that the government “can’t wait” to address the housing crisis. He says the idea is to help homeowners and hold financial services companies accountable for how they treat mortgage holders.

“Already, we’ve set up a special task force, as I’ve asked my attorney general to investigate the kind of activity banks took when they packaged and sold risky mortgages,” President Obama said in his speech. “And that task force is ramping up its work as we speak. We’re going to keep at it and hold people who broke the law accountable and help restore confidence in the market. We’re going to speed assistance to homeowners. And we’re going to turn the page on an era of recklessness that hurt so many hardworking Americans.”

The White House also released a fact sheet with more details on the plan, which the White House calls a “blueprint for an America built to last.” It claims to use a “broad range of tools” to assist U.S. homeowners, and here are some key points:

The $3,000 Refinancing Provision

As long as homeowners are current on their mortgages, they qualify for a special government-backed mortgage refinancing plan that the White House says should help homeowners save, on average, $3,000 per year thanks to lower interest rates.

A Homeowner’s 'Bill of Rights'

The president’s plan guarantees a “single set of standards” to support U.S. homeowners, including access to a simple, streamlined mortgage disclosure form, full disclosure on mortgage fees and penalties, and built-in protection against unfair foreclosure practices.

Turning Foreclosures into Rentals

The plan seeks to stabilize neighborhood home values by turning foreclosed properties into rental units, with the government buying up the properties and then renting them out.

Increased Forbearance

The White House has asked banks to provide up to 12 extra months of home mortgage forbearance (basically “sidelining” mortgage payments) for unemployed homeowners, so they stand a better chance of keeping their homes.

Beef Up HAMP

The plan throws more financial resources into the federal government’s home modification program and foreclosure reduction program. It pretty much guarantees low-cost refinancing, even for homeowners with bad credit (a FICO core of 580 still gets a homeowner a refinancing deal). Homeowners with mortgages less than $729,750 qualify for the program.

The president says the plan is just the right antidote to help homeowners to get back on their feet. “[Our plan] will help millions of responsible homeowners who make their payments on time but find themselves trapped under falling values or wrapped in red tape," the president said.

But will banks and Congress go along? That’s the next step, and it’s unclear whether they will go along with the plan. Some are already saying that it’s time the government gets out of the way and lets the private sector fix the mortgage mess.

"Until the president gives up his crusade to increase the government's interference in the housing market, home foreclosures will continue to rise, our economy will continue to falter and every American's share of the national debt will continue to grow,” says Rep. Scott Garrett (R-N.J.), chairman of the House GSE and Capital Markets subcommittee.

Trouble in the housing sector has acted as a brake on the economy for five years now, but here are a few economic indicators that suggest the recovery might be under way.

Where the Long-Term Unemployment Crisis Is Worst

Seth Fiegerman — Thu, 02 Feb 2012 17:02:00 -0500

NEW YORK (MainStreet) — Although the unemployment rate is improving nationwide, certain regions still face the very real prospect of having a sizeable number of their unemployed left behind by the labor market.

In the Southeast, where states like Florida were among the hardest hit by the housing bubble, 37.6% of the unemployed had been without work for six months or longer as of the fourth quarter of 2011, according to an analysis of data from the Bureau of Labor Statistics by the Pew Fiscal Analysis Initiative. Likewise, more than 35% of the unemployed in the Great Lakes region and 34% of the unemployed on the West Coast had been without work for this long.

For each of these three regions, that means more than 3% of the total labor force now qualifies as being among the long-term unemployed, and even that may be a low estimate. As MainStreet has previously reported, many discouraged workers across the country have dropped out of the labor market after failing to find work for too long and are not counted in this unemployment data.

The danger of being out of the workforce for so long is that those workers will be less competitive for jobs in the labor market as their skills become less relevant to new jobs and potential employers grow wary of the long gap since their last job. States in these regions may also experience a greater drain on their resources due to lost tax revenue and the need to support these long-term jobless workers with unemployment benefits and other resources.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

What You Need to Know About Credit Union Credit Cards

Jeanine Skowronski — Thu, 02 Feb 2012 16:30:09 -0500

NEW YORK (MainStreet) — More than 600,000 people moved their bank accounts to a local credit union following November’s Bank Transfer Day in an attempt to escape fees and find better interest rates. But what about credit card accounts?

According to Tim Chen, CEO of NerdWallet, who closely monitors the credit union sector, people definitely get a better shot at a low interest rate when they apply for a card backed by a credit union.

“The rates are better and your [credit] score doesn’t have to be perfect,” he says.

Atlanta-based Associated Credit Union, for example, offers a Visa Platinum Preferred credit card with a fixed 9.9% annual percentage rate to members with a FICO score higher than 680 and a fixed 12% APR to members with a FICO score of 600 or higher.

Chen notes that credit unions are also more open to working with local customers than big banks tend to be so even those who don’t meet their standard underwriting guidelines may be able to secure a card with favorable terms and conditions. The varying rates can make it hard to compare one credit union to another, but are still generally much lower and less stringent than what is being offered at big banks.

Of course, there is also a trade-off, and credit union cardholders may have to make a few adjustments in how they manage their accounts.

“Most national banks have 24-hour customer service,” Chen says. “You may not find that at some of these smaller credit unions.”

Additionally, it may require a bit more legwork to obtain the credit card since credit unions, by design, only lend to their own members.

But while small local unions may only let nearby residents apply, larger ones have “back doors” that allow almost everyone to join. The Pentagon Federal Credit Union, for instance, allows anyone to join if they make a one-time $15-$20 donation to one of the nonprofit organizations associated with it.

Most members will find the legwork worth it.

“They tend to have more of a mom and pop feel,” he says. “Members say they receive great customer service.”

Want to find out more about what new credit union members have to say about their experience? Read our article on where Bank Transfer Day participants are now.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

The Biggest Benefit Users Can Get From Facebook IPO: Better Security

Matt Brownell — Thu, 02 Feb 2012 16:10:39 -0500

NEW YORK (MainStreet) – Facebook connects close to a billion people around the world, so it’s no surprise that it has become a target for scammers looking to spread their malware and malicious links. While Facebook has long fought a sometimes losing battle to keep the site free of scams, there are hints that its initial public offering will bring a renewed focus on protecting users from those security threats.

“Now it will have to continually alert the public about anything that could have a material impact on its profitability… The good news is the additional oversight and pressure should result in a safer, more secure and privacy-aware Facebook,” writes Sophos security researcher Chester Wisniewski on the security firm’s blog.

In its 202-page S-1 filing Wednesday, the social network lists numerous potential threats to its business, including a shrinking user base, loss of advertisers, government censorship abroad, unfavorable media coverage and even the potential for a breakdown of its lucrative relationship with social gaming company Zynga. Among those risk factors, one in particular stood out: “Computer malware, viruses, hacking and phishing attacks, and spamming could harm our business and results of operations.”

The company concedes in its filing that malware attacks have taken place in the past, will likely take place again, and could harm both the company’s systems and its standing with users in the future.

“Any failure to maintain performance, reliability, security, and availability of our products and technical infrastructure to the satisfaction of our users may harm our reputation and our ability to retain existing users and attract new users,” reads the filing. “In addition, spammers attempt to use our products to send targeted and untargeted spam messages to users, which may embarrass or annoy users and make Facebook less user-friendly.”

Facebook even concedes that it can’t defend against all spammers. Still, it’s heartening to see Facebook acknowledge the problem, and could suggest that the new scrutiny that comes with being a publicly-traded company could encourage it to take the problem more seriously.

Indeed, there are signs that Facebook was already starting to get tougher on security threats in the months leading up to the IPO announcement. Back in October, network security firm Websense announced a partnership with Facebook to provide a system to warn users when they are about to follow a malicious link. And Facebook continues to file lawsuits against various marketing firms that it accuses of spamming users.

While such actions made good business sense even for a private company, Facebook’s new public face means that it’s under more pressure than ever to keep its users safe and secure.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Why Weak Credit Won’t Kill a Car Loan

Jeff Brown — Thu, 02 Feb 2012 15:03:25 -0500

NEW YORK (MainStreet) – Most borrowers know that imperfect credit can kill one’s chances of getting an affordable mortgage, but a good car loan may still be within reach.

That’s worth remembering as more drivers head to the showroom. Kelley Blue Book expects that when the final numbers are in, January’s sales will beat sales the same time last year by 10%. KBB credits slight improvements in the economy, a dip in unemployment, and Americans’ growing need to replace vehicles after postponing purchases when the economy was weak.

Happily, car-loan rates are pretty attractive, with four-year new-car loans averaging just 4%, according to the BankingMyWay.com survey.

Of course, mortgage rates are enticing, too, but many borrowers can’t get the advertised deals because of credit flaws, and can’t afford the bigger payments from the higher rates charged less-than-perfect applicants. But higher car loan rates aren’t as harmful for three key reasons.

First of all, auto loans are for smaller sums than mortgages – $20,000 instead of $200,000, for example – so interest charges are easier to bear, even at higher rates.

Second, auto loans typically run from three to five years, while most mortgages last for 30. Put simply, a higher rate won’t hurt you as much if you won’t be stuck with it for very long.

Third, because the vehicle loan will be paid off in just a few years, a big chunk of every payment goes to the principal balance, leaving a smaller portion of the payment to be subject to the interest rate.

On a four-year $20,000 car loan at 4%, payments would be $452 a month. In the first month, only $67 of that payment would be interest, or 15%.

Compare that to a 30-year, $200,000 mortgage at 4%. The payment would be $955 a month, with $667 going to interest in the first month, 70% of the total.

Now let’s look at what would happen to a borrower who had to pay 6% on each loan because of weak credit.

The mortgage payment would jump to $1,200 a month, with $1,000 going to interest. That jump could push the loan out of reach. Even if it didn’t, the borrower might not want to bear the long-term cost. At 6%, interest would come to $232,000 throughout 30 years, compared to $144,000 with the 4% loan.

But all of those numbers are more manageable on the car loan. Raising the rate to 6% from 4% would boost the payment a mere $18, to $470 from $452. Total interest over the loan’s four-year life would be $2,546, compared to $1,676 at 4%.

So how much does your credit rating affect the car loan rates you can expect? A recent survey by Edmunds.com, the car-data firm, found that a borrower with a credit rating of 720 or higher could get a four-year loan at 3.65%, while an applicant with a 630 to 669 rating would pay about 8%.

Clearly, it’s better to have a flawless credit history. But if you don’t, a new car may be within reach anyway.

Looking to buy a new set of wheels? Here’s what you need to know before making a purchase!

How Your Credit Card Can Make Valentine’s Day Cheaper

Jeanine Skowronski — Thu, 02 Feb 2012 14:56:03 -0500

NEW YORK (MainStreet) — You already know you can use your credit card to buy your Valentine a heartfelt gift, but you might not realize it can also help you save a few dollars on the holiday in the long run.

Issuers are known to offer deep discounts and additional cash-back bonuses on popular Valentine’s Day items in their bonus point malls as Feb. 14 approaches. Here are a few of the better ones to consider.

Flowers

Discover (Stock Quote: DFS) is offering 20% cash back at 1-800-Flowers, FTD.com, ProFlowers and Teleflora through its ShopDiscover service, while Citi (Stock Quote: C) is offering 15% cash back at KaBloom through its Citi Bonus Cash Center. Citi also has coupon codes available with FTD Florist that sweeten the 10% cash back cardholders can take advantage of in the bonus center. This includes $5 off on an order of red roses bought before Feb. 12.

Meanwhile, Chase (Stock Quote: JPM) is offering 15 extra points per dollar spent at ProFlowers and KaBloom in their Ultimate Rewards Mall.

Candy

Chase is offering rewards cardholders seven extra points per dollar spent on Godiva products and is providing a coupon code that entitles them to $10 off an order of $60 or more over at Ultimate Rewards. Citi is also featuring the coupon and offering 5% cash back on Godiva purchases through its Bonus Center. Citi cardholders can also get 6% cash back on purchases from Harry & David, plus an additional 20% off purchases using a coupon code. Bank of America (Stock Quote: BAC) is offering seven points back on each dollar spent at Ghirardelli in its WorldPoints Mall.

ShopDiscover is offering 20% cash back at 1-800-Baskets for cardholders looking to give chocolates, cookies or other assorted gifts. If your Valentine has an affinity for both chocolate-covered strawberries and charity, American Express (Stock Quote: AXP) is letting cardholders earn 12% back on purchases at Shari’s Berries, which will be donated to the United Way through its Deal Center.

Wining and Dining

ShopDiscover has another 20% cash back promotion going on with Restaurants.com, which is known for its attractive discounts available at local restaurants. Cardholders can also get 15% cash back on purchases from Wine Enthusiast, so if you’re heading to a BYO, you’ll be all set.

Chase is offering 12 points per dollar spent on Restaurant.com purchases in the Ultimate Rewards Mall. Citi cardholders can get 12% cash back on Restaurant.com purchases and 8% cash back on Zagat Wine purchases through its bonus center.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Tax Tip: Document Your Special Tax Situations

Robert D. Flach — Thu, 02 Feb 2012 14:40:59 -0500

Editor’s Note: This article is part of our 2012 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) – There’s a lot more to tax filing than totaling up your wages and taxes paid, so if any of the following situations apply, make sure you provide your tax preparer with all of the necessary documentation.

You sold shares of stock or a mutual fund. Make sure you know the original cost and date of purchase of the shares that you sold. The information may be on your year-end statement you get from your broker. If you purchased shares via dividend reinvestment, you’ll need to know the amount of dividends that were reinvested each year. If you originally inherited the shares that you sold last year, know the number of shares inherited and the date of death of the person from whom they were inherited.

You sold real estate. Give your tax preparer the closing/settlement statements for both the purchase and sale of the property, plus the cost of capital improvements you made over the years.

You purchased real estate. Give your preparer the closing/settlement statement for the purchase of the property. For rental property, also provide the separate amounts of “assessed value” for land and improvements from the tax bill.

You refinanced a mortgage. Again, make sure you provide the closing/settlement statement for the refinance and the term of the new loan.

You received IRA distributions. You will need the year-end statements for all IRA accounts, which will be provided by the financial institution that manages the accounts.

You have dependents in college. Provide all Form 1098-Ts you received to reflect your tuition payments, the “burser’s reports” for the year (you may be able to print out a report from the college’s website), and the amounts paid for books and supplies.

You paid for child care. Make sure you have the name, address, Social Security or Employer Identification number, and the amount paid for all child care providers. Summer day camp costs qualify for the Child Care Credit.

You received a distribution from a pension plan. If you took any cash out of a retirement plan, whether or not you rolled over the distribution to an IRA, you will need documentation of the amounts and dates of the transaction.

You donated a car to charity. Give your tax preparer all the paperwork you received from the charity, especially the Form 1098-C, plus documentation of the original cost and date of purchase of the car.

You’re paying alimony. Make sure you have the Social Security number of your ex-spouse, the amount of alimony paid in the year, and any other required payments (i.e. health insurance premiums, real estate expenses) you made on behalf of your ex-spouse.

You purchased a car, truck, SUV, motorcycle or boat. For any major vehicle purchase, provide documentation of the amount of sales tax you paid.

You purchased an energy-efficient product for your home. Energy improvements are tax-deductible, so make sure you have the receipt for the item purchased and a Manufacturer’s Certification Statement. If you do not have a Manufacturer’s Certification Statement, go back to where you purchased the item and ask for one. You also may be able to download one from the manufacturer’s website.

If you’re filing your taxes for the first time this year, make sure to check out MainStreet’s Taxes 101: A Beginner’s Guide to Filing Your 1040!

How to Compare Bids for Remodeling

Zillow.com — Thu, 02 Feb 2012 14:00:00 -0500

By Leonard Baron

Choosing the right contractor is one of the most important decisions you’ll make in a home improvement project. Even the most gung-ho DIY-er has to call in a home professional sometimes. Although some homeowners may be tempted to go with the cheapest option, choosing a bid shouldn’t just depend on price. Here are some tips to help you through the process:

Take your time and plan ahead

With any major room renovation or remodel, you will need take several months for planning. Go to home improvement showrooms and stores, talk to contractors, architects and others who have done these improvements. Go to new home communities and see what their high dollar designers have selected as colors and types of cabinets, flooring, or countertops and take lots of pictures of the designs you love. Check out home decor sites and magazines and take notes on anything you like. Ultimately, this will help you form a visual of your remodeled space. When you know exactly what you want, you will be able to have better discussions with contractors and get realistic bids.

Note: Any remodeling you do will always cost more than you anticipate. While this can be due to unexpected problems, cost overruns also commonly occur because the homeowner changes his or her mind. This is the most important reason why you want to take the time to determine as close as possible what you want before you move forward.

Making improvements doesn't guarantee improved home value

Another important issue to realize is that while making improvements to your property may increase the home value, it probably will not increase the value as much as you spend on the improvements. For example, if you spend $50,000 on a kitchen, your home may not sell for $50,000 more. Check the cost vs. value for your remodel project in your area. Also, don’t make improvements if you are selling the property, let the new owner do those. Make major home improvements only if they are for your personal enjoyment as the continuing long-term owner of the home.

Get at least three bids

Time to get bids. Get at least three different reputable contractors to bid and have them detail the manufacturers of each product in their bids. The more specific their bids, (because you were more specific in your requirements), the less chance of disagreements and the higher chance you will stay within budget. Review the bids, if possible, with someone who is experienced in remodeling properties, perhaps someone who recently did a remodel. Make sure the contract has a time frame for completion and possible penalties for significant time overruns. Whatever you do, don’t rush to make decisions on the contractor you select.

Get references

Ask the contractors for names and numbers of references from their past five jobs and ask what the original project budget and final cost was. Call the references, ask questions, and if possible, go see some of the work. You should also check websites like the Better Business Bureau and state and local government sites to confirm the professionals are licensed and in good standing. Get a copy of their insurance and bonding information and fax it over to your insurance agent, lawyer or CPA to also help you review.

Know that costs can increase

A fixed cost contract is the optimal scenario, but if you change orders or possible issues arise, costs increase. You should also agree with the contractors on a payment schedule based on milestones of work being completed. There should be a hold-back amount, like the final 10-15 percent of the payment, for at least a week or two after all work is complete. This way you can closely review the work and you’ll still have some leverage if items need to be resolved.

Take the time

Again, take the time to properly specify the work you want done, put it in detailed writing, check out the past work of the contractor, verify their license, insurance and bonding information. Hopefully doing this will help you avoid significant changes and cost overruns.

Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate”, and loves kicking the tires of a good piece of dirt! See more at ProfessorBaron.com.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

4 Things to Do Instead of Watching the Super Bowl

Matt Brownell — Thu, 02 Feb 2012 13:27:18 -0500

NEW YORK (MainStreet) – Like 110 million of my fellow Americans, I will be spending my Sunday evening watching Super Bowl XLVI between the New England Patriots and the New York Giants. Still, that leaves another 200 million or so Americans that simply don’t care about the biggest sporting event of the year.

If you’ve decided to abstain from the Super Bowl, what should you do with yourself that night instead? We’re so glad you asked.

Find a Deal

While grocery stores will be teeming with last-minute shoppers picking up supplies for bean dip and buffalo wings, most other retailers will be largely devoid of customers. And if you don’t mind haggling, that gives you the perfect opportunity to get a great deal. As we explained earlier this week, deal-hunters would do well to visit stores during off-peak periods because salespeople and managers will have time to haggle with you. And with a third of the country parked in front of the TV, you can bet that any store that’s open on Sunday evening will be a virtual ghost town.

Meanwhile, a number of businesses are offering special Super Bowl promotions and deals. Even if you’re not a football fan, you can still take full advantage.

Have Dinner and a Movie

Online reservation service OpenTable sees reservations drop by 50% on Super Bowl Sunday versus other Sundays, which means that this is a great night to get into that restaurant that’s always too crowded (just stay clear of sports bars). Want to see a movie? Theaters see a similarly deep drop in attendance, so you and your date can enjoy a quiet theater and the best seats in the house.

Watch the Puppy Bowl

For the uninitiated, the Puppy Bowl consists of a bunch of puppies frolicking on a small “football field,” where they play with football-shaped toys. Puppies who poop on the field or participate in “Unnecessary ruff, ruff, ruff-ness,” are assessed penalties by the referee. This year is Puppy Bowl VIII, and for the first time we’ll get to see the Piggy Pep Squad. Get excited, people. The event starts at 3 p.m. EST on Sunday on Animal Planet, so technically you don’t have to skip the game to watch it. But it’s worth checking out either way.

Get a Good Night’s Sleep

Outplacement firm Challenger, Gray & Christmas identifies the Super Bowl as one the top productivity-sappers of the year, noting that revelers find it particularly difficult to show up to work on Monday morning after drinking heavily the night before. And a 2007 study by the Workforce Institute at Kronos estimated that 1.5 million people miss work the day after the Super Bowl and another 4.4 million are late to work. Take this as an opportunity for workplace advancement: Come into work the next day rested and ready to work, and you’ll present a nice contrast with your hungover or absent co-workers. While everyone else is making frequent trips to the bathroom and falling asleep at their desks, you’ll be impressing your boss with your chipper attitude and productive ways.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

3 Reasons to Like Facebook as a Business

Seth Fiegerman — Thu, 02 Feb 2012 13:05:00 -0500

NEW YORK (MainStreet) — Facebook’s decision to file for public offering effectively completed the social network’s transition from being a small startup to a true corporate powerhouse, but just because the website is a big business doesn’t mean it behaves like all the other big businesses out there.

Buried in the papers that the company filed Wednesday are several key data points that suggest that Facebook and its CEO aren’t as motivated by profit as many other companies. That may be a red flag for investors who are primarily concerned about profitability, but for the country as a whole, it should serve as a positive example that a public company can be successful and socially responsible at the same time.

Here are a few new reasons to like Facebook as a company:

Pays Taxes in Full

There’s no doubt that Facebook is rolling in dough at the moment, but it could potentially have even more money on hand if took advantage of more tax loopholes. As some have pointed out, the company’s filings show that it paid a corporate income tax of roughly 40% in both 2010 and 2011. Compare that to the many multi-billion dollar businesses that somehow manage to pay less than 5% on average per year in federal taxes. It’s a nice reminder that a business can be profitable and competitive without avoiding paying its fair share back to society.

A CEO Who Doesn’t Care Much About Money

We know, we know. Everyone cares about money on some level, especially someone as cutthroat as Facebook’s founder and CEO Mark Zuckerberg, who stands to make as much as $28 billion if the company’s market cap hits $100 billion. That said, consider two important facts: First, the company revealed in its filing that Zuckerberg will be paid a salary of just $1 a year (plus his share of the company’s stock). More tellingly, Zuckerberg has already signed a pledge organized by Warren Buffet and Bill Gates to give away his fortune to charity.

Products Are More Important Than Revenue

Zuckerberg included a letter in the filing that clearly laid out the company’s mission statement and showed where its priorities lie, one that will likely appeal to many young entrepreneurs today.

“Most great people care primarily about building and being a part of great things, but they also want to make money,” Zuckerberg wrote. “Simply put: we don't build services to make money; we make money to build better services.”

Once again, it’s probably not what investors want to hear, which is part of the reason why it makes us like the company that much more.

To all of this we would add one other fact that certainly isn’t new but is still worth noting: Facebook is an American company in the best sense of the term. It was started in the U.S., has since grown to have a global influence, but continues to create thousands of jobs at home – more than 200,000 jobs to be exact. In some ways, Facebook really is the polar opposite of a tech company like Apple, which is beloved for its products but occasionally criticized for its business practices. Facebook’s product – the social network – is criticized at times for its various privacy policy and design changes, but the company’s business practices deserve more fans.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerma@thestreet.com, or follow him on Twitter @sfiegerman.

Big-Spending Republicans Throw Cash at Super Tuesday

Alix Steel — Thu, 02 Feb 2012 12:59:44 -0500

GOP Presidential candidates continue their mudslinging campaigning by spending millions of dollars in Super Tuesday primary states.

Senators’ Bill Calls for Independent Study of Airport Scanners

ProPublica — Thu, 02 Feb 2012 12:30:00 -0500

By Michael Grabell

A group of five Republican and Democratic senators on the homeland security committee introduced a bill today that would require an independent health study of the X-ray body scanners used in airports nationwide.

We have been reporting on the cancer risk associated with the Transportation Security Administration’s scanners and on the expansion of X-ray equipment at the border, in prisons and on U.S. roads.

In addition to mandating a health study, the bill would also require the TSA to place larger signs in front of security lines advising airline passengers about the radiation and the option to have a physical pat-down instead.

"An independent study is needed to protect the public and to determine which technology is worthy of taxpayer dollars," said Sen. Susan Collins, the top Republican on the homeland security committee. "Surely passengers should be well informed of their screening options."

ProPublica is a nonprofit news organization that produces investigative journalism.