Mainstreet - Smart Spending

Best of the Week: Free Cable, Black Friday & More

David Seaman — Sat, 07 Nov 2009 07:00:00 -0500

This week we released our Happiness Index results, reported on a $10,000 toilet gig & much more. All in the MainStreet weekly roundup, right here.

Bargaining for Cable: Free Channels & Lower Bills

David Seaman — Fri, 06 Nov 2009 07:00:00 -0500

Contrary to what some believe, it is possible to negotiate with large cable companies. A few minutes of your time could lead to new premium channels, or an outright reduction in your cable bill.

Organizing Your Tweets Means Better Savings

Judith Aquino — Thu, 05 Nov 2009 16:15:00 -0500

In the world of bargain hunting, there are amateurs and there are pros. An amateur might scan a circular or check a few Web sites before heading to the stores. A true bargain hunter systematically tracks down useful coupons and knows when to pounce on the best sale offers.

This season, bargain shoppers will have new game to hunt: Twitter deals. Following retailers on Twitter is quickly becoming a must for keeping up with the latest sales.

“More retailers have realized how useful Twitter can be for their businesses,” noted Craig Johnson, president of Customer Growth Partners, a retailing consulting firm. “More have gotten the hang of using Twitter and we anticipate many will be using social network media to push their sales this Christmas.”

As more retailers jump onto Twitter, keeping track of everyone’s tweets (messages) can be overwhelming. Luckily, Twitter recently introduced a new feature that allows you to organize tweets from other users into as many lists as you want.

For example, if you wanted to keep track of tweets from Sears, Toys R Us and the Gap, you could create a list labeled “stores” and add the usernames of these stores to your list. The stores’ tweets will then appear under one list, making it easier to keep track of sale offers as they appear.

Here’s how to do it:

Sign up for an account on Twitter.com.
Click “New List” on your Twitter sidebar.
Create a name for the list.
Select Public or Private, depending if you want others to see your list or not.
Click “Create List.”

To add usernames to a list, go to a person’s page by searching or clicking the name on Twitter, click the Lists icon next to the username and select the checkbox to add that person to the list. Other users can follow the usernames on your public lists but they won’t be allowed to edit them.

Have fun with your lists! In addition to a list of stores, you can make lists of friends, business contacts, interesting accounts – it’s all up to you. Happy list-making!

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Quicken Online to Merge Into Fresher Mint.com

Kali Geldis — Thu, 05 Nov 2009 12:45:07 -0500

If you're a Quicken loyalist, you might have been perplexed or even worried by Intuit's acquisition of rival personal budgeting site Mint.com.

Questions about the future of Quicken Online and Mint.com have been hanging over the heads of users of both sites ever since the deal was announced in mid-September.

Now that the deal is closed, TechCrunch spoke with Mint founder and CEO Aaron Patzer about the future of the two sites. Patzer told TechCrunch that “Over the next 6 to 9 months … we will end-of-life Quicken Online and their customers’ data will be migrated over to Mint.”

So, we finally have an answer: Quicken users will wave goodbye to their online experience and be merged into the Mint network.

Now, now, Quicken fans, don’t be too upset. The good news is that Patzer said there are plans in the works to integrate the popular TurboTax program into Mint's offerings as well.

Patzer, who is now in charge of all of Quicken's online and desktop products in addition to Mint.com, told TechCrunch, “What I want to do is to take your stock transactions and everything you’ve tagged in Mint as a medical expense or business expense and push that over to see if you should itemize deductions. If we pull in your 1099s and deductions, we have done half your taxes for you. We could reduce the time it takes you to do your taxes to 20 minutes or less.”

Sign me up! A 20-minute tax filing process would be revolutionary, though I'm not sure accountants would be too pleased...

Facebook App Allows for Online Cash Exchange

Brian O'Connell — Thu, 05 Nov 2009 10:45:37 -0500

What will they think of next?

In a move that could put a dent in cash exchange providers like Paypal, a new application called Give More, Get More allows Facebook users to give and accept money while logged in — saving them a trip to Paypal or another cash provider.

The new application should be a big hit. After all, Facebook is massively popular. According to the company’s own numbers, Facebook now has 300 million users (up from 150 million at the start of the year). Furthermore, these users spend more than 8 billion minutes on the site each day.

If time is a commodity, then Facebook is the Internet’s chief currency — and it’s only growing bigger and bigger.

Take the money transfer application mentioned above. Give More, Get More, developed by a company called Facecard, actually allows users to spend money within Facebook. With it, users can send money to other Facebook members, view transactions and even set up “wish lists” that allow users to accept cash donations toward big events like a birthday, wedding or graduation.

The actual mechanics of the software fit easily into the Facebook culture. When users send cash through the Facecard application, a “gift” icon pops up on the user’s screen, letting the recipient know that cash is on the way.

To use the Facecard application, users need to sign up for Facebook (that part is free) then ship money from your bank account to a pre-paid credit card account managed by Metabank (Stock Quote: CASH). That part isn’t free — it costs 99 cents for accounts up to $20, and fees rise to 2.5% for cash amounts more than $600.

By using the pre-paid card, Facebook members also earn rewards points and discounts at favored retailers, online sites and restaurants. Cardholders can also set up one-time bill payments, much like online cash exchange giant Paypal. Facecard sends alerts out when the pre-paid card’s minimum balance level is about to be reached.

While Facecard is making the application free for now, it does plan to implement a new fee structure — a $5 sign-up fee and $3 per month to set up the account — before the end of the year. Users can have the monthly fee waived if they have their paychecks loaded to their Facecard account via bank transfer. That may not be such a great idea, as Facecard doesn’t pay any interest for holding on to your money.

But parceling out a few dollars for birthday gifts or for cash exchanges for kids away at college may be helpful for Facebook users — a demographic that continues to grow larger and more financially flexible by the day.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Retail Shuffle: Brands Switch It Up

The Associated Press — Thu, 05 Nov 2009 10:14:36 -0500

By Anne D'Innocenzio, AP Retail Writer

NEW YORK (AP) — Some of fashion's best-known names are playing musical chairs.

Faced with a consolidating department store industry and eroding sales, some labels are cutting ties with retailers that sold their clothing and betting their future with one chain. Liz Claiborne Inc.'s announcement last month that it's moving its namesake line to J.C. Penney Co. from Macy's Inc. and other stores follows similar moves by other major brands like Tommy Hilfiger and Dana Buchman.

"You need some sort of chart ... with retailers and brands, where you are using erasable ink," said Michael Stone, CEO of The Beanstalk Group, a brand consultant. "They are moving around so much."

The brand-hopping can confuse shoppers who can't find their favorite label. But in some cases it means shoppers will be able to get a taste of designer names that only two years ago were far from their grasp.

In the short term, such confusion may hurt the brand, Stone said. But in the long run, the label "settles into its new identity" and becomes a powerful tool for the retailer to attract shoppers.

Some brands, like Liz Claiborne, had been the anchors at department stores for years but have hit hard times. Trading mass distribution for better exposure at one store could help them revive their labels. Brands also benefit by getting more prominent placement in advertising and increased real estate at the chain.

That's what happened when Macy's became the exclusive retailer of Tommy Hilfiger women's and men's sportswear; the exclusive partnership expanded to children's wear this past spring. Macy's has built Hilfiger's presence in women's and men's sportswear to almost 600 stores from about 400 before the tie-up, according to Jim Sluzewski, Macy's spokesman, citing strong sales.

Tommy Hilfiger fragrance, home furnishings, accessories and other products are still being sold at other stores as well as Macy's. The clothing also is sold at the brand's own stores and Web site.

The deals ease what had become increasingly adversarial relationships with stores. Retailers have made more financial demands to help pay for heavy markdowns as consumer spending dropped dramatically.

The exclusive arrangements more tightly intertwine the fates of retailers and the brands they sell.

Dana Buchman, known for career clothes with touches of animal prints that had been a mainstay at upscale department stores like Saks Fifth Avenue, has now been reinvented for more frugal shoppers at midbrow retailer Kohl's Corp., starting this past February. Under the deal, Liz Claiborne Inc., the owner of the brand, has a team of designers creating the line. Kohl's oversees manufacturing and marketing.

Meanwhile, Ellen Tracy's stylish outfits fell out of favor for many executive women who now shun conservative outfits and are buying items from trendier designers. But its new owner is seeking new life exclusively at Macy's, starting next spring, and has a new licensee making the clothes after another licensee was forced into bankruptcy by creditors this summer.

The reshuffling is leaving these brands' loyal shoppers feeling a bit rejected.

Beth Hazlett, an information media executive from Pittsburgh, wasn't able to find her favorite labels— Dana Buchman and Ellen Tracy — last year at Saks and Nordstrom.

"I feel like they abandoned me in some way," said Hazlett, who had been buying both brands for at least 15 years. "I liked the way they fit and cut."

The price cuts that some of the deals entail are pretty drastic. Dana Buchman separates cost anywhere from $12 to $116 at Kohl's; previously, pants suits could go for as much as $600. Jackets under a revamped Ellen Tracy will cost anywhere from $99 to $149 when it's launched in 100 Macy's stores and online in March. That's a big step down from a range of $400 to $600 that was typical for the brand.

But don't expect Hazlett to follow Dana Buchman to Kohl's.

"I've never been to Kohl's," she said. "And I would not go to Kohl's."

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Identity Theft & Holiday Shopping: Scary Scenarios

Althea Chang — Thu, 05 Nov 2009 07:00:00 -0500

Here are some tips from identity theft experts to keep in mind as you make your shopping plans and start buying gifts.

Black Friday Deals Come Early This Year

Seth Fiegerman — Thu, 05 Nov 2009 07:00:00 -0500

What to expect from your favorite retail stores this year.

Bank of Mom and Dad: Overspending on Smokes

Farnoosh Torabi — Wed, 04 Nov 2009 22:00:00 -0500

Each week on SOAPnet’s new reality series Bank of Mom and Dad, a twenty-something woman who is drowning in debt must pay the ultimate price ... letting her parents move in! With the assistance of money coach Farnoosh Torabi (that's me), Mom and Dad will teach their daughter to rethink her spending habits and transform her relationship with money.

This week we met 26-year-old bride-to-be Carmela Adesso from Bayonne, N.J., who was carrying roughly $30,000 in debt due to her pricey shopping habits. More than a third of her monthly income was going towards clothes, makeup, tanning, nails and cigarettes.

All the while Carmela was aiming for an over-the-top wedding with ice sculptures, a professional orchestra and a designer gown. So how can she get out of debt and afford the wedding of her dreams? That was the challenge. Here's some of the advice.

Cut Costs Out of Your Wedding

You want to get married or weddinged? Instead of spending money on wedding favors — trinkets that’ll probably get tossed or forgotten about quickly — opt to make a donation to a charity in honor of your guests.

Share the news on a small card next to individual table settings but don’t worry about including the amount of your donation — that’s private. Spend as much you want without breaking the bank. This is where the thought counts a lot more than the dollar amount spent.

You can also create and print your own invitations and save-the-dates using helpful sites like vistaprint.com and mygatsby.com. And instead of hiring a professional film and videographer, consider hiring a trustworthy, experienced friend (who can “gift” you his or her video or photographs) or a college student with a nice portfolio of work.

Cut Back on Smoking

The health risks of smoking were clear to Carmela but she didn’t quite see the financial damage.

Carmela smokes about one pack of cigarettes per day, spending roughly $250 a month on her addiction. That money tucked away in a conservative savings account earning 3% for the next 30 years will produce roughly $150,000.

Together with her boyfriend (who also has a pack-a-day habit) the couple could save $300,000 if they quit buying cigarettes.

Fashion Swap

Carmela was spending $1,240 a month on clothing, an expensive habit that was causing a great deal of financial grief. To teach her an alternative to shopping, Carmela’s mom invited her friends and cousins over for an impromptu fashion swap where Carmela and the guests exchanged articles of clothing — out with the old and in with some new — for free! There are sites online that facilitate swaps, too, such as swapstyle.com and thredup.com

Catch a new episode of Bank of Mom and Dad, Wednesdays at 10 p.m. EDT on SOAPnet

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Penny Pincher of the Week: Sarah Barrand

David Seaman — Wed, 04 Nov 2009 17:23:39 -0500

“Cheap” is no longer a derogatory word—now we equate it with thrift, intelligence and quiet moderation. And Main Street America has always been impressed by temperance: Yesterday Warren Buffett bought $44 billion worth of railroad, yet we still love him because he lives in the same modest Nebraska home he bought in 1958 for just $31,500.

Of course, most of us never will get a chance to snatch up a bargain of Buffett proportions. Which is precisely why modern day coupon hunter-gatherers like Sarah Barrand of AThriftyMom.com serve as an example for those of more moderate means looking to get frugal fast.

Solidly middle-class folks and billionaires alike are fascinated by the art of the steal. We found Barrand noteworthy because she seems seriously committed to chronicling how she saves her family money. On her blog, she publishes a monthly “Budget Review” sharing with readers clear photos and prices of all the items she bought at deep discount during the previous month. And it’s all thanks to the magic of coupons and sales promotions.

Let’s take last month: “Before sales coupons or sales this would have cost $461.84, but because I waited to match my coupons with a great sale I was able to get it all for $95.57.” She saved close to 80% this way. The stockpile of goods she bought in October is a truly impressive sight.

How does she do it, exactly? “I do not shop like a ‘Normal’ person,” she explains on the blog. We assumed as much.

She stocks up on items at their “lowest price point for the week.”

“I bring them home and add them to my Pantry which is full of items that I use to make my families menu. My freezer is stocked with meat, so between the pantry and the freezer I do not really ‘NEED’ to buy anything. Which allows me to only purchase things at a price that I am happy to pay. Of course I have to buy my perishable items every week, like milk eggs and veggies.”

This method requires a lot of discipline, but it’s doable if you are willing to scan multiple Sunday papers for coupon inserts, as Barrand does. She describes this as the secret to her success; she told us via e-mail that this system allows her to save "hundreds of dollars a month."

So what are you waiting for? Pick up a copy of the Sunday paper and pull out those scissors. It may just be worth your time.

You could be next! Want to nominate yourself or a friend as MainStreet’s Penny Pincher of the Week? E-mail the reporter at David.Seaman@thestreet.com with your suggestion.

Outraged Consumers: Car Dealer Complaints

David Seaman — Wed, 04 Nov 2009 14:45:46 -0500

It seems everyone these days has a bad car dealership experience or two to share. Here are some of the most serious complaints we found online.

Banking Deals of the Week: Nov. 4

Brian O'Connell — Wed, 04 Nov 2009 10:39:19 -0500

It’s a tough world out there, with Americans postponing their pursuit of the American dream to hunker down until the economic storm passes — and when that happens is anyone’s guess.

While we wait for a revival and focus on survival, let’s make the best of the situation by finding the best bank interest rate deals out there.

BANK SAVINGS ACCOUNTS

This week’s hunt starts in the savings account marketplace, where Discover Bank (Stock Quote: DFS) has a whopper of a savings rate — 1.75% as of Nov. 4.

That’s light-years ahead of the 0.22% average savings rate pegged by the BankingMyWay Weekly Savings Rate Tracker.

The Discover account is strictly an online savings account, with no minimum balance and the ability to set up automatic transfers from any bank checking or savings account.

The rate has fallen in recent weeks from 1.85% so it’s wise to act fast. For all the details, visit the bank's site.

BANK CDs

Ever hear of an “added-value” certificate of deposit?

In a word, it's a CD that add a few basis points to the interest rate, much like a baker adds an extra muffin to your “baker’s dozen” on Sunday mornings.

ING Direct (Stock Quote: ING) has a similar deal with its added-value CD, which adds 15 basis points to bring the interest rate on its 12-month CD to 2.25%.

That’s twice the amount of the average 12-month CD rate return, according to the BankingMyWay Weekly CD Rate Tracker, which clocks in at 1.02% this week.

You have to open the account online, but there is no minimum funding payment and the payout options are extremely flexible. A word of caution — if you try to take the CD proceeds out early, expect to be charged roughly three months of earnings.

Also, ING Direct is firm about using your bank checking account to fund the CD (it doesn’t have to be an ING bank account). So have your checkbook handy when you open the CD.

For the details, visit ING's site.

U.S. TREASURY BONDS

We don’t talk much about U.S. Treasury Bonds here at “Deals of the Week” but maybe we should — especially when you can get a deal like the one offered by TreasuryDirect.gov.

The object of our desire this week is the Treasury’s “I bond,” which combines a fixed rate with the current inflation rate to give you a pretty good return when compared to similarly-lengthed bank CDs.

Right now, you can get an I bond that pays a return rate of 3.36% — 0.3% based on the fixed rate and 3.06% based on the current inflation rate.

What are I bonds? The TreasuryDirect.gov Web site describes them:

“I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. Once sold and redeemed solely as a paper security, they’re now also available in electronic form. As a TreasuryDirect account holder, you can buy, manage and redeem I Bonds online.”

The 0.3% on the fixed-rate portion of the I bond is three-time higher than the 0.1% we saw last spring, but it’s also way below the 1% rate we saw in 2010 — but at least it’s moving back in the right direction.

To find out more about I bonds, and the 3.36% rate, check out TreasuryDirect.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

iPhone App Sherpa: Welcome to the 'Bank of Mom'

Stephen Dalton — Tue, 03 Nov 2009 16:20:24 -0500

Most experts agree that one major cause, among many, for the recent financial crisis was an overall lack of financial knowledge among borrowers across the U.S.

With talk of personal finance classes becoming a required part of high school curriculum in some states, we all knew it was only a matter of time before someone took the trend to the iPhone level.

A new iPhone app sweeping the nation’s more involved parental units is called “Bank of Mom.” (Not to be confused with a new similarly titled reality TV show on SOAP net. If you want to read lessons form the show's money guru, click here.) This app aims to help teach your kids the value of money, so they don’t end up like some spoiled My Super Sweet 16 brat begging for an elaborate helicopter waterslide party.

Basically, “Bank of Mom” is a new tool that allows parents to easily keep track of their kids’ spending, borrowing, allowances and privileges. The app purports to be used more for the value of “teaching a financial lesson to children at an early age,” rather than assisting parents in their loan sharking / collection agency duties. After all, no one wants Mom smashing Jimmy’s piggy bank when he’s a few days late on his repayment.

Say your kid asks to borrow $50 bucks to supplement his or her savings for a new bike. The Bank of Mom app will catalog this transaction and keep track of the interest accumulated in the time it takes Mom and Dad to get that $50 back. Mom gets updates on her iPhone which she then shows Jimmy, most likely with some helpful explanation and parental advice. Again, hopefully parents are using this more as a teaching device than an actual means of making money with high interest rate lending. Then again, that would probably be an easy lesson for Jimmy to learn if he ended up owing three times his principal months later.

In addition, this is a beautifully designed app. Scrolling across the screens you’ll notice the simple, intuitive interface with an attractive plant life theme. The app features the ability to track multiple accounts for multiple children, make deposits, withdrawals and even chart privileges like TV time, play dates and video games. These are forms of rewards that children can understand.

Sure, it might sound a little like brainwashing or propaganda, but every little bit helps. There are certainly worse things for a child to be than sufficiently financially savvy at an early age. Maybe just make sure they’re eating their vegetables and staying in school as well.

This app was just released at the end of October, so there may still be some kinks to be worked out. The majority of customer reviews have been overwhelmingly positive, however. Many reviewers have noted it’s a simple new way to keep track of this stuff compared to charts and dry erase boards hanging in the kitchen. So, there you have it, if your family is already charting this kind of thing for your kids, definitely go for the iPhone app and make life a little easier on you.

Summary

Application: Bank of Mom

Cost: $1.99

Use: Allows users to teach their children financial responsibility from an early age using their own virtual bank account.

Download iPhone App via iTunes

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

15 Seconds of Fame for $15 (or Less)

Seth Fiegerman — Tue, 03 Nov 2009 15:15:00 -0500

Some people would sell their soul for a few seconds of stardom in the Big Apple. But now, all you need to do is buy a pair of socks.

American Eagle announced today that they are opening up a new flagship store in Times Square later this month, and to promote themselves they are launching an innovative marketing campaign, called “15 Seconds of Fame.”

Customers who purchase something at this particular American Eagle, be it a $50 shirt or a $12 pair of socks, will have the option to have their face broadcast on an electronic billboard above the store, along with a short message.

Reuters reports that when customers go to check out, they “will be invited to pose in a mini photo studio. Moments after, the customer`s photo will be projected onto the 15,000 square feet of LED screens (25 stories high) outside the store, for all of Times Square to see.”

According to USA Today, an estimated 500,000 people pass through Times Square on a typical day. If you take a good photo and pick a catchy message, maybe you can even get a job out of it. (In this job market, it’s certainly worth a try!)

Similar promotional stunts have taken place in the past. Kodak, for example, used to broadcast one photo a day from its customers on their massive billboard in Times Square.

Ultimately, it’s a win-win for the company. American Eagle’s promotion starts Nov. 19, just before holiday sales take off. It’s a great way for American Eagle to set themselves apart from their retail competitors and, just as importantly, to stand out in the crowded Times Square area.

On top of that, customers will undoubtedly take pictures of themselves on the billboard and blast it across the Internet to friends and peers. That’s more free publicity for American Eagle.

However, if we know anything about New Yorkers, they will probably become blasé about this new opportunity in a few weeks’ time.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Shoppers, Small Businesses Cut Holiday Spending

The Associated Press — Tue, 03 Nov 2009 14:30:12 -0500

By Tali Arbel, AP Business Writer

TIGHT-FISTED?

A third of U.S. adults said they would spend less this year than they did in 2008 on gifts, while 49% would spend about the same amount, according to a Consumer Reports poll on holiday shopping.

Meanwhile, almost two-thirds of respondents said they were planning to "cut back" on total holiday expenses, which include travel plans, presents and holiday decorations.

More Americans are also "regifting," or passing on a gift they got to someone else — 36% of adults this year say they've done so, compared with 31% last year and 24% in 2007.

The survey polled 1,000 U.S. adults from Oct. 15-18.

It's worth noting, though, that Americans who plan to spend less don't always do so. The survey found that, of those Americans who made a budget for last year's holiday gift buying, 44% spent more than they had intended.

The poll also said 6% of adults are still carry holiday debt from last year, unchanged from 2008. If extrapolated to the broader population of the country, that implies 13.5 million consumers are still carrying debt from last year's holidays.

Clothing and electronics remained the top gifts to give, the survey said.

The survey, conducted randomly by telephone, had a margin of error of plus or minus 3.2 percentage points.

NO BONUS

More small-business employees can expect no end-of-year bonuses or gifts for 2009.

A recent survey of small business owners or managers showed fewer of them planning gifts or cash for their workers.

"Business owners are still feeling pinched cash-wise," said American Express business adviser Alice Bredin. AmEx's small business division conducted the survey.

Last year, 44% of those surveyed said employees would get an end-of-year bonus. This year, only 31% did. Even fewer are planning raises: 16%, compared with 30% last year.

Meanwhile, in 2008, 46% of owners or managers said employees would get holiday gifts. This year, it's 35%.

The business owners or managers surveyed oversaw companies with fewer than 100 employees.

According to the government's Small Business Administration, companies with under 500 workers employed about half of all private sector employees as of 2006.

The survey also found that, of those still giving a present, 42% said they'll give fewer or cheaper gifts to customers and employees.

The businesses are cutting back on employee compensation and presents before client gifts, Bredin said, because customer presents can be important marketing tools.

"If there are no customers, there is no discussion about employees."

In the survey, nearly half the companies surveyed planned to give presents to customers, about the same as last year. Those surveyed said they would spend $455, on average, on the holiday presents. In 2008, small business owners planned to spend $457 — and in fall 2007, it was an average of $1,483.

In one bit of good news, the survey did show the number of workers who would be getting time off over the holidays remained the same as last year, at 47%.

The random survey of 500 small business owners or managers was conducted over the phone from Oct. 6-14. It has a margin of error of plus or minus 4.4 percentage points.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Subscriptions: The Gifts That Keep On Giving

David Seaman — Tue, 03 Nov 2009 12:00:43 -0500

Subscriptions to magazines, DVD services, and wine clubs can be affordable and thoughtful gifts. Here are a few of the best options.

Ford Surprises With Billion-Dollar Profit

David Seaman — Mon, 02 Nov 2009 13:15:00 -0500

Great news for Ford Motor Company (Stock Quote: F). As our sister site TheStreet.com reported this morning, Ford “roared past estimates, reporting fourth quarter net income of $997 million.”

The government’s Cash for Clunkers program, which has recently come under fire for costing taxpayers an estimated $24,000 per vehicle sold, is credited with helping lift Ford’s numbers — along with a smart “reduced cost structure” strategy. In addition, the company did not take any government bailout money. And it probably bears mentioning that Ford is the only large U.S. automaker that hasn’t filed for bankruptcy this year.

John Lutman, general manager at Koons Ford of Annapolis, says many customers like the fact that Ford “didn’t take any money” from the government. He says customers are also drawn to Ford’s “great fuel efficiency” and expects that the positive profit news will only increase awareness of Ford vehicles, hopefully drawing more people into showrooms. Lutman says that customers in his showroom are especially excited about the redesigned Ford Taurus model, which sports new EcoBoost technology. EcoBoost is a "Ford technology that reduces emissions and increases power with lower displacement via turboboosting and direct gasoline injection," according to Jalopnik. When asked if he thought the positive earnings report would directly boost Ford sales, Lutman didn't say.

It is worth noting, however, that we recently reported on how Ford is benefitting from a strong brand presence. Experian Automotive came out with its list of the 10 vehicles with the strongest brand loyalty; six of them were Fords.

Here’s to a nice quarter, Ford! That 41 mpg Hybrid version of the 2010 Ford Fusion doesn’t look bad either.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Halloween Guide: Last-Minute Costumes, Candy & More

MainStreet.com Staff Writers — Fri, 30 Oct 2009 16:26:53 -0400

Did you miss one of our eerily awesome Halloween stories this week? Don't worry, here's your frugal guide to the horrifying holiday.

Car Dealers Protected From New Consumer Protection Agency

ProPublica — Fri, 30 Oct 2009 12:30:31 -0400

By Paul Kiel, ProPublica

Last week, the House Financial Services Committee voted to establish a new Consumer Financial Protection Agency. The agency would have broad authority – but thanks to fierce lobbying, it’ll also have big gaps. Consumer advocates point to an exemption for auto dealers as one that’s particularly worrisome.

An amendment stripped auto dealers from the proposed agency’s oversight. With strong backing by the powerful dealer lobby, and despite the White House’s attempts to kill it, the amendment easily passed in the committee, 47-21. Nearly half of the panel’s Democrats voted for the amendment along with the committee’s Republicans, who’ve generally opposed the new agency.

The exception for auto dealers sets up an odd situation: Many of the larger financial institutions that provide auto loans will be under the new agency’s supervision, but that supervision would stop at the dealer’s door. That’s more than a technicality, consumer advocates say, because some dealers exploit their role as the middleman between the consumer and the loan.

Those dealers tack on unnecessary fees and steer customers into higher-cost loans, splitting the difference with lenders. “The buying process itself is intentionally structured to be needlessly complicated and time-consuming to wear down and confuse car buyers,” said John Van Alst of the National Consumer Law Center.

About half of auto buyers finance their purchases through their dealers, but that proportion is even higher for families with lower incomes, said Van Alst, and minorities are particularly at risk. In a letter to the committee’s leadership this month, the Consumers Union, the NAACP, the National Consumer Law Center and more than 30 other groups argued against the exemption, pointing to a pattern of abuses.

Steve Adamske, spokesman for the committee chairman, Barney Frank, who voted against giving dealers an exemption, said that Frank shared those concerns, but he also “understood the political forces behind the amendment. He wants consumer advocates to go to work and change the votes.”

The National Automobile Dealers Association – which contributed $2.86 million to members of Congress during the 2008 election cycle – has argued that current regulation of dealers is adequate. David Westcott of NADA went further in a statement praising the amendment, saying that adding regulation for dealers was unfair, because they “had absolutely nothing to do with the credit crisis.”

But the purpose of the new agency goes beyond just targeting those most responsible for the country’s financial collapse, said Travis Plunkett of the Consumer Federation of America. “The goal of this agency is to protect consumers. And that means looking at abusive lending of all kinds.”

It seems that consumer advocates have an uphill battle. Beyond their substantial financial contributions, dealers are often prominent constituents in members’ districts. The dealer lobby last showed its influence after General Motors and Chrysler closed thousands of dealerships as part of their bankruptcies. Lawmakers lobbied the administration about the move, and the House even passed a measure to force the automakers to reopen the dealerships. The push eventually wilted because of continued opposition from the White House, which argued that the car companies wouldn’t survive without the closings.

We’ll continue to track the progress of financial reform efforts as they move forward.

ProPublica is a nonprofit news organization that produces investigative journalism.

GM Extends Refund Program to Jan. 4

Kali Geldis — Fri, 30 Oct 2009 11:33:57 -0400

Still want to take advantage of that General Motors refund promotion? You're in luck. The auto company just gave the program a 60-day extension.

"May the Best Car Win," which gives every customer the opportunity to get a refund on any new GM vehicle within 31 to 60 days after the purchase, began on Sept. 14 and was originally intended to last only until Nov. 30.

According to a company press release, the deal will now run until Jan. 4, thanks to the program's popularity so far.

“The campaign is getting the word out about how good GM’s new products are,” Jay Spenchian, executive director, Marketing Strategy, said Thursday during a media update on the marketing campaign. “We’ve seen positive coverage and increased awareness of launch products like the Buick LaCrosse and GMC Terrain.”

Last week, GM announced that only 15 vehicles had been returned as a part of the "May the Best Car Win" program in what the company labeled as a huge success and a reinforcement of the brand's quality.

According to the Associated Press, consumers have been leery of the Detroit company since it filed for bankruptcy protection earlier this year. With a new CEO, GM is hoping to reinvigorate their brand and change public opinion of the company.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Winterizing Cars Doesn't Have to Break the Bank

The Associated Press — Fri, 30 Oct 2009 09:19:01 -0400

By Dee-Ann Durbin, AP Auto Writer

DETROIT (AP) — You don't need to spend a lot to get your car ready for winter's tough conditions.

Cold temperatures are hard on engines, tires and even gas tanks. As you prepare to navigate icy roads, you can easily spend $500 on snow tires and a tuneup. But there are other steps you can take to make things easier on your car, and your wallet.

Here are 10 tips for winterizing on a budget.

Check your tire pressure. Properly inflated tires not only increase traction on snowy, icy roads, but they'll also help prevent damage from potholes. You should also check your tires for wear with a depth gauge — you can get one for about $5 — or with the wear indicators on the tires.

Replace your wiper blades. Don't wait until a driving snowstorm to find out your wiper blades aren't working. Carl Scavotto, manager of the training center for the Meineke car care chain, suggests winter wiper blades, which have thicker squeegees and rustproof covers. They cost around $12 apiece. While you're at it, make sure your wiper fluid reservoir is full.

Check your battery. The engine has to work harder in the winter, which puts pressure on the battery, and corrosion can wear it down even further. If you see a white, powdery substance around the battery's clamps and cables, clean it with a mixture of baking soda and water and put some petroleum jelly on the battery terminals to prevent further corrosion. "That can be dirty, but it's really easy to do yourself," said Rik Paul, automotive editor of Consumer Reports.

Get an oil change. The colder the oil is, the thicker it will be, and thicker oil doesn't circulate well in the engine. Scavotto suggests a lighter grade oil in the winter so it flows more smoothly. An oil change costs around $30.

Check your antifreeze. Ideally, the mixture in your radiator should be half antifreeze and half water, according to the auto information site Edmunds.com. If your radiator doesn't have enough antifreeze, the water inside can freeze, expand and crack the radiator. You can find a $10 antifreeze tester at auto parts stores.

Check the vehicle's belts and hoses. Cold temperatures can weaken them, and repairs can be expensive. Good hoses will feel firm but pliant. Belts shouldn't be frayed or cracked and should have some tension when you press on them. Breakage can cause a myriad of problems, including an overheated engine, loss of power steering or loss of electrical systems.

Keep the gas tank full. Changing temperatures can cause condensation to form on the walls of the gas tank, and water will drop down into the gas. If water gets into the fuel lines, it can freeze and block the flow of gas to the engine.

Check your four-wheel drive system, if you have one. Four-wheel drive can improve traction in slippery conditions, so check your owner's manual to see how to start it and then make sure it engages and disengages smoothly. Edmunds.com suggests that if your vehicle has multiple drivers, make sure each of them knows how to put the vehicle in four-wheel drive.

If it's time for your car's scheduled maintenance, don't delay. Scavotto said technicians can make sure parts are up to date and everything is in working order. "These are maintenance items, not drivability problems, so the typical tuneup is inexpensive," he said.

Keep an emergency kit in the trunk. Make sure you have bottles of water, a snow brush and ice scraper, wiper fluid, a flashlight, flares, extra gloves and a blanket. Sand, salt or non-clumping kitty litter also can give you added traction if your tires get stuck.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Buy Bulk With Food Stamps

The Associated Press — Thu, 29 Oct 2009 15:00:00 -0400

By Dan Sewell and Sarah Skidmore, AP Business Writers

PORTLAND, Ore. (AP) — With many families suddenly struggling to feed themselves, the big warehouse clubs known for king-size packages of steak and jumbo boxes of Cheerios are increasingly competing with grocery stores for the 36 million Americans now on food stamps.

Costco Wholesale Corp. said Wednesday that it would start accepting food stamps at its warehouse clubs nationwide after testing them at stores in New York. That is a big about-face for a chain that has catered to the bargain-hunting affluent with its gourmet foods, and a reflection of the fact food-stamp use has hit new highs.

Costco joins warehouse-club competitor BJ's Wholesale Corp., which started taking food stamps last April, and Sam's Club, which began accepting them in the fall of 2008.

Up until recently, some wholesale clubs were skeptical poor people would be willing to pay the $50-a-year membership fee or would be interested in buying food in the bulk quantities for which the stores are famous.

But now, in this economy, stores are battling for every dollar and see a big potential market in the growing ranks of food-stamp recipients.

From warehouse clubs to supermarkets and mom-and-pop groceries, stores are retraining their cashiers and hanging new signs to welcome such customers.

"Certainly this economy was a wake-up call," Costco chief financial officer Richard Galanti recently told investors. "It is not just very low-end economic strata that are using these."

The rolls of food-stamp recipients have grown by 10 million over the past two years. The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005.

Most major food chains — like Wal-Mart Stores Inc. and Safeway Inc. — have accepted food stamps and other public assistance as payment for many years.

Costco had refused to do so, arguing that there would not be enough shoppers to make it worth the trouble of updating its electronic payment systems and that food stamps would slow down the checkout lines.

In May, however, Costco began accepting food stamps in New York under political pressure, and the practice turned out to be more popular than expected. Richard Galanti said the company's assumptions were "probably a bit arrogant."

Moreover, some of the warehouse club chains say that poor people — particularly those with large families to feed — can save money by buying food in bulk.

The warehouse clubs are not waiving their membership fees for food stamp recipients, and memberships cannot be bought with food stamps.

But Costco executives said they were surprised to find that some shoppers are, in fact, paying the $50 fee precisely because the company takes food stamps.

The company hopes to accept food stamps in about half its 407 stores in the U.S. by Thanksgiving. The rest will be phased in as Costco gets the necessary state approvals.

As for Kroger Co. and other grocers that have long accepted food stamps, they are adding new signs to welcome those on food stamps, as well as increasing staffing and stocking up on key products at the times of the month when benefits are issued.

"This is a big deal. It's a meaningful segment of our shoppers, and it's increasing rapidly," said David Dillon, Kroger CEO, who recently visited a store to talk with shoppers using food stamps about their concerns.

Kroger cashier Richelle Crawford in Cincinnati said she sees more shoppers using food stamps, and she tries to help the newcomers.

When they try to pay for items that cannot be purchased with food stamps, she escorts them back to the aisle and points out the signs indicating what is eligible.

Latoya Murdock, a single mother of two small children, smiled recently as Kroger employees fussed over them. She said she needs food stamps to help keep her youngsters healthy.

"I have absolutely no shame in using it for them," she said, holding up her benefits card. "It's been a lifesaver. I never leave home without it."

Peter Hsia, a retail strategist for the Kurt Salmon Associates consulting firm, said taking food stamps could help stores even after customers don't need them anymore.

"They've got a big slice of their core customers who are now using food stamps, and you don't want to lose them when the economy picks up," he said.

The move could also help the warehouse clubs hold onto members who have fallen on hard times.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Halloween Restaurant Freebies

Seth Fiegerman — Thu, 29 Oct 2009 12:05:30 -0400

If you don’t have a costume already, make one quick because the Halloween deals start tonight and go through this weekend. You just need the right outfit.

Tonight, TGIF is offering one-cent appetizers at their bar to anyone who wears a costume. The deal is good anytime between 9pm and when the bar closes as long as you buy a drink (non-alcoholic is fine). Forget Halloween – that just sounds like the best happy hour ever. Read more about the promotion on TGIF’s official site.

Other restaurant chains are giving away food on Halloween day. If you get tired of taking your kids trick-or-treating around the neighborhood, drive them over to Taco Bell. They are promoting their new Black Jack Taco by giving them away from 6pm to close. The new taco is filled with ground beef and a spicy Pepper Jack sauce. Scary delicious.

Taco Bell isn’t the only Mexican place dishing out freebies. Chipotle is too. However, not only do you have to wear a costume, but you have to dress up as an item on the menu. Your choices are burrito, bowl, taco or salad. We recommend the first option: just throw some tin foil on your head and you’re a burrito. Done.

Since kids also enjoy Halloween (it’s true), and need regular food to counterbalance their sugar intake (also true), you might want to take them to Uno’s Pizzeria. Kids in costume get to eat a make-your-own pizza for free.

But be sure to treat yourself to one of the above places, too, because kids get free candy all night long anyway, and unless you want to dress up as a scarier, older version of Harry Potter, you do not.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Bank of Mom and Dad: Emotional Spending

Farnoosh Torabi — Wed, 28 Oct 2009 22:00:00 -0400

Each week on SOAPnet’s new original reality series Bank of Mom and Dad, a twenty-something woman who is drowning in debt, must pay the ultimate price ... letting her parents move in! With the assistance of money coach Farnoosh Torabi (that's me), Mom and Dad will teach their daughter to rethink her spending habits and transform her relationship with money.

Ever shop to make yourself feel better because you had a bad day or a fight with a friend? At what point does it become a problem?

For Shameeka Philip, the newest female contributor on Bank of Mom & Dad, the situation became extremely clear when she found herself owing more than $60,000 to creditors.

The main mistake she made was using her entire $40,000 line of credit (money that was supposed to go toward home renovations) mainly for travel, spa trips and shopping sprees. (She also reduced her hours at work so she could travel). The rest of her debt stems from other credit cards and a student loan.

Now, with hopes of having a family one day and settling down, Shameeka needed to repair her financial wreckage and address her out-of-control spending habits once and for all.

Her mother Meshele and stepdad Brian moved in for one week to help their daughter learn her mistakes and open her eyes to smarter financial decisions. Along the way I offered budgeting advice and savings tips like these:

Lower Your Interest Rates. Even in this recession when we’re hearing horror stories about card companies raising rates, there’s still hope for some customers who want to reduce their interest rates in order to better pay down their balances. In Shameeka’s case, her $40,000 line of credit was carrying a whopping 18% interest rate. Her minimum payments each month of $1,265 were barely chipping away at the principal and most was going toward interest.

It would take Shameeka 29 years to fully pay down the debt at that rate. I suspected she could get a lower rate by calling her bank and sure enough, after explaining she was going through some hardships, she managed to convince the powers-that-be to reduce her rate to just 4%. Her minimum payments dropped dramatically, but by keeping her payments at $1,265 she would be free of that debt in a little more than three years. Amazing!

Get the Look for Less. To say that Shameeka has expensive fashion taste is an understatement. She says she is physically drawn to pricey shoes and handbags and her skin tingles at the site of fine leather. With the help of a professional stylist Shameeka learned how to get the look she craves for much less, including $35 jeans that look and feel like the ones she buys for $200 or more.

Seek Therapy. When you hear Shameeka say that she has a shopping addiction, you wonder how deep the problem really is and where it’s rooted. It turns out Shameeka has been having a hard time dealing with her emotional issues stemming from family relationships. With the help of a professional, Shameeka is encouraged to open up her well of emotions and learn how to cope with them in ways besides hitting the mall.

Catch a new episode of Bank of Mom and Dad Wednesdays at 10 p.m. (9 p.m. Central) on SOAPnet.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

$99 WikiReader: A Pocket Encyclopedia

The Associated Press — Wed, 28 Oct 2009 14:45:00 -0400

By Peter Svensson, AP Technology Writer

NEW YORK (AP) — When I was a kid, my dad bought a copy of the Encyclopedia Britannica. It had 32 volumes and took up 4 feet in the book case. I loved to sit on the couch and flip through it, reading articles at random.

Now, I'm returning the favor, giving my father an encyclopedia that has the equivalent of 1,000 volumes. Yet it fits in his pocket, and it costs just $99.

There are few better illustrations of the staggering advance of digital technology than the new WikiReader. It's the size of a thick table coaster, and contains nearly the entire text of the English-language Wikipedia. That's 3.1 million articles, written and edited by volunteers around the globe.

The WikiReader is sold online and made by OpenMoko Inc., a Taiwanese company. The founder, Sean Moss-Pultz, says the inspiration for the gadget comes from the electronic translation dictionaries that are common in Asia.

Now, a lot of cell phones can access Wikipedia, so why would anyone want a WikiReader? Well, the fact that the WikiReader carries the text on a memory chip, rather than using an Internet connection, means you can use it anywhere: overseas, on a plane, in the subway.

It's also faster and easier to use than most cell phones, and it has a bigger screen. The battery life is, to believe OpenMoko, outstanding.

It says two AAA batteries will last in the WikiReader for a year, if you use it 15 minutes per day. I certainly wasn't able to exhaust it in a few weeks.

The face of the device is nearly filled by a monochrome LCD touch screen. To search the encyclopedia, you bring up an on-screen keyboard. To select links, you tap on them. To scroll, you move your finger across the glass.

There are four buttons: one for power, one for the search screen, one that lists the pages you just visited, and one that brings up a random article. I'm fond of that last one — it brings back memories of my childhood reading habits.

Given the depth of Wikipedia, the Random button brings up the most obscure articles: An article about Caribbean vampire mythology is followed by the entry for a village in Poland, then a region of Antarctica, then the men's results from the 1967 Alpine Skiing World Cup, and so forth.

The simplicity of the device does come at a cost. It's hard to type search terms on the screen, and scrolling through long articles is tedious. There's no backlighting, so you can't read in weak light. Because the screen doesn't show color, the WikiReader doesn't even bother to show images.

Because the screen is narrow, the WikiReader doesn't show tabular material either. For instance, online, the "List of Battlestar Galactica episodes" is organized into a table, but it's missing from the device. OpenMoko says it plans to include tables once it figures out how to display them in a way that works on the screen.

The online Wikipedia changes every minute, but the WikiReader's content does not. It's a static snapshot. However, the manufacturer plans to provide free updates four times a year. To take advantage of that, you'd have to extract the chip from the WikiReader's battery compartment, stick it in a computer's card reader, and download the entire database.

OpenMoko also plans to provide a subscription service that mails new memory cards with updated content four times per year, for $29.
Limitations aside, the WikiReader is a cool idea and comes at the right time of the year. It makes an interesting gift for people without "smart" phones, or are heading out to see the world. Bookish kids will be entertained — there's no dinosaur you can't find in Wikipedia.

And imagine what one of these could mean to a poor but literate teenager in a developing country.

Wikipedia doesn't encompass all of human knowledge, but it's certainly a delicious slice of it, and the fact that we can now pocket it is something to be amazed by and thankful for.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Are Multivitamins Useless?

Althea Chang — Wed, 28 Oct 2009 12:05:41 -0400

Taking a multivitamin everyday to boost your health could actually be a waste of money.

That’s because nutrients pressed into pill form isn’t absorbed into the body as well as nutrients that come from actual food, notes WalletPop. Still, Americans spend more than $4 billion a year multivitamins, the site notes.

And when they are absorbed, you could end up with more than you need, which may lead to negative side effects, according to the Food and Drug Administration. That could mean nausea, liver problems, blurred vision, nerve damage and interactions with other medications, according to the agency.

“If you're generally healthy and eat a wide variety of foods, including fruits, vegetables, whole grains, legumes, lean meats and fish, you likely don't need dietary supplements,” according to the Mayo Clinic.

On the other hand, if you live on bagels and coffee for your nutrients, according to WalletPop, $30 or so per year on a bottle of Centrum might not be a bad idea, but spending several dollars daily on individual packages of multiple vitamins might be overdoing it.

But generally, “a multivitamin is kind of like an insurance policy for someone too lazy to determine whether they have any deficiencies,” Dr. Stephen Barrett of Quackwatch.com told WalletPop. “…A body simply doesn't require a daily blast of a wide spectrum of vitamins and minerals.”

Universal Remote Confessions

Stanley Bing — Wed, 28 Oct 2009 11:45:00 -0400

NEW YORK (TheStreet) -- I got a Universal Remote. Have any of you ever had one that worked? This one didn't. Doesn't. Won't.

I've had them in the past. But sometimes when you have an object that disappoints you, you try again a few years later. Like, a while back I tried to set up a wireless network in my apartment.

It was a PC thing, with routers and PCMCIA cards and stuff like that. Didn't work at all. Sputtered a lot. Died at inopportune times. I hated it. More recently, I got a Mac with built in Airporter. Got an Airport Extreme to go along with it. Bingo. Wireless up the wazoo. Love it.

Some things, however, never change. I think I've already told you about my hate/hate relationship with Bluetooth. From the fact that my ear was not built to take the little dinglething in stride to the obnoxious anti-linking situation with whatever cell phone I seem to possess... my tooth will never be blue. I've tried three times. Three strikes is out in any game I care about.

Now there's this Universal Remote here. It's supposed to tie together my little sound system with my DVD player and cable box. I am supposed to press B, which will turn on all my components, then press CBL for cable, DVD for DVD (duh) and AMP for the sound system. Simple? No question. I put my other remotes in a drawer with tremendous satisfaction, put batteries in the Universal Remote and voila. Ready to roll.

Except it wasn't. I didn't. Roll, I mean. I pressed B. Everything went on. The TV said "Video 2 NO SIGNAL" and there was no picture. The sound was fine. The cable box was on. But I think a picture is part of the whole deal, don't you? I pressed some other buttons. Now the sound went out too.

So I went to the cabinet and got out my poor, disrespected TV remote. Cycled through the Inputs. Found the right HD button to restore the picture. Then I took out the remote associated with my sound system and got that up and running again, too. Pretty soon it was all back to normal. Then I put my new Universal Remote into a drawer.

I'll take it out in a couple of months and see if I'm smart enough to get it working then. Perhaps I won't have a cocktail beforehand, like I did last night.

You want to be sharp when you're operating heavy machinery.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Recall Horrors: Halloween, Baby Products & More

Althea Chang — Wed, 28 Oct 2009 07:00:00 -0400

Faulty consumer products could cause unintentional fright, or even injury following another rash of recalls. Here’s what you should keep an eye out for.

iPhone App Sherpa: Pay Down Your Debt

Stephen Dalton — Tue, 27 Oct 2009 16:45:03 -0400

Everyone hates debt. It’s horrible to be in, but great to get yourself out of. Now there’s a nice, little new iPhone app that will help you keep track of your various debts and deal with them quickly and efficiently.

I’m speaking about the Debt Snowball Pro application from the App Store.

You’ll have to pay $2.99 to use this app, which is a little steeper than your typical download. Most range from $0.99 to $1.99. However, the savings you’ll earn from paying off your debts sooner, all due to the easy design of this app will more than make up for it.

One of the most discussed pieces of personal finance advice is how to deal with your debt. Some more mathematically-minded financial gurus will tell you that debt with the highest interest rate should be attacked first, foremost and mercilessly.

However, other gurus have made a name for themselves by preaching an alternative, more psychological approach called the “Debt Snowball.” Dave Ramsey of Fox TV and radio fame is the largest proponent of this strategy (although he isn't associated with this iPhone app, as far as I can tell). The reasoning behind it has to do with an indebted person’s need to overcome small goals sequentially to build motivation for future success.

The app itself does not pigeonhole you in one strategy or the other. The user has the option to choose which method of debt “snowballing” they prefer: to tackle big interest rates first or to start with easy goals.

Debt Snowball Pro also offers some nice easy-to-use interfaces, appropriate customization, intuitive features and a clean design. It’s all pretty simple and relatively easy to get the hang of.

Just add your debt, whether it be from a credit card, student loan, car loan or mortgage payment. Insert remaining balance info, monthly payment amount and interest rate, then the application will calculate your remaining payments and an estimated Payoff Date. Toggle and tinker with payment amounts to find out how to maximize interest rate savings from increased monthly payments.

Sure, it’s all something you could figure out using a calculator and some scrap paper on your own. But with this iPhone app. you're just two taps away from ever-vigilant financial prowess, and you’ll be able to keep track of and analyze your debts at any time of the day. Therefore, it goes to reason that the more frequent access you have to your debts, the more focused you’ll be on paying them off.

The majority of unfavorable reviews for this application stem from crashes and frozen screens that, according to the developer, have been corrected with the latest round of updates. Most of the most recent reviews for this application from users have been highly favorable.

So, whether you’re a Dave Ramsey-lover or just a big ole debt hater, this app will help you take it to the house on your financial servitude once and for all.

Summary

Application: Debt Snowball Pro

Cost: $2.99

Use: Allows users to figure out a debt pay-down schedule.

Download iPhone App via iTunes

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Get Organic Produce Cheaper

Althea Chang — Mon, 26 Oct 2009 18:17:48 -0400

Does buying organic mean spending a fortune? Here’s how and when you can find organic produce on the cheap.