The Finance Blogger

We have noticed recently that many people just pay whatever the asking price is for something. They never really try to negotiate or ask for discounts. Some people will only negotiate on the large items and don’t bother with less expensive items. Always try to negotiate whenever you can and always ask for discounts. Any money you save is money in your pocket. Which can be used for other expenses including trips and dining out with the family.

Negotiate on Expensive Items

Expensive items that are negotiated and result in saving 10% of your cost mean that there is a lot more money in your account. You might save hundreds or even thousands of dollars. Yes, this is something you should definitely focus on whenever you are buying something like a car, a home, or large appliances.

But what about things that you may buy more often? Can you save money on the purchase of your TV service, your telephone service, or your internet service? You get these bills every month. If you can reduce the bill by even $25 a month, this can add up fast over the years.

Negotiate on Inexpensive Items

The latest example was when I was having an oil change for my car. Based on the mileage I put on my car, I have to change the oil every couple of months.  Since I believe in always asking for a discount, knowing the worst thing that will happen to me is that they could say no, I asked if they gave senior discounts or discounts for triple-A members. Without hesitating the parts manager offered me $10 off the price! Just like that with no hesitation or counteroffer. I did not even have a coupon to offer. All I did was ask him if there were any discounts and he gave it to me. Now $10 is not a lot, but it does pay for many other things that I need to buy, and based on my oil-changing habits, I save about $40 a year on oil changes.

Now this includes an oil change, a 100-point checkup, and a car wash for $31! What a good deal and I got this discount because I asked! There was no coupon or anything like that. It just goes to prove that you should always ask for a discount, the worst that can happen is that they say sorry, no discount. Lots of times they offer some reduction which keeps money in your pocket and makes a loyal customer!

Loyalty

Even if they charge me the full price next time I will be going back to this garage because of the service and the features that were included in the oil change. The car needed to be cleaned inside and out. To have someone do it for me, it would have cost me $18 somewhere else. The 100-point checkup is pretty standard, but not all places give you a full report like this with even the tire tread depth and the brake width measurements provided. Not only do they give you peace of mind, you know when you need to spend some money on things like tires and brakes.

Negotiate – ask for Discounts

So the bottom line is always asking for a discount. The worst thing that might happen is that they say no and apologize when they do that. The very best thing that will happen when you ask for a discount is that they will offer you a discount, a future coupon for something, or a free gift of some sort. Many companies are getting really creative as far as discounts are concerned. You never know what will be offered, so the best idea is to always ask and see where it takes you.

Celebs are taking the safe road to investments to protect themselves when income is not coming in. They work on a variety of films and movies. Their income can vary a great deal over the months and even years. Since their income is so irregular, taking the safe road will help them ensure that they still have cash when they are not working or are between projects. When a TV show that has been running for several years suddenly is terminated they are out of a job. It can take some time to line up another show or film, or even do advertising. They need to make sure they have the cash to get them through the slow periods.

Safe Road to Investments – Variable Income

When they are working the money is fantastic; when they are not working it can be pretty scary! They may be still spending as if they are working and the money is flowing out. Many people, the writer included getting a little excited when the big money is flowing in. It is easy to forget that this is a temporary situation. Suddenly you are spending money like crazy. Before you know it you are living from paycheck to paycheck. Spending huge sums on cars and homes, vacations that are over the top expensive, and many more. When the paychecks stop coming, there is a scary dose of reality. Unless you have invested carefully and planned for this situation.

Many have learned to invest wisely and conservatively to make sure there is money to carry them through the dry periods. By investing in conservative funds and even bonds and GICs, there will always be funds available to help them through these situations. Diversity is also important as well. Never place everything in one investment, spread it around in conservative investments. Even some real estate can do well, but real estate is not very liquid, especially if you own an expensive home. It may take as long as six months to sell a home that is listed at a seven-figure rate.

Safe Road to Investments – Going Broke

We have all heard of a few stars and celebs who have made a lot, spent a lot, and are now broke. The same can happen to the average consumer unless they take control and manage their spending! The same situation applies to consumers who work at companies and suddenly find themselves laid off. If you have been spending paycheck to paycheck, then you may not have any savings that can get you through the period between jobs. If Celebs can plan for the future, why can’t the average consumer also plan for the future?

All it takes is to set aside 10% of your income every week for a rainy day to use a popular expression. When the time comes that you have a cash flow emergency due to job loss or a major medical emergency, the money will be there for you. Rainy day funds should not be used for vacations, buying cars, or other such items. This money is there to help you get through those times when there is no money coming in to buy groceries and pay the rent or the mortgage payment.

While 10% may seem like a lot, once you get started and get used to living on 90%, it actually becomes quite easy and most people after a while do not even miss the money. They really get used to living on 90%, stretching their paychecks rather than spending the entire amount every week. Sure you may have to do without some things, but that is really part of budgeting and planning for the future.

Follow the lead of the Celebs, we think that many of them have it right! For more investing information, click here.

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Do you trust your real estate agent? Business is business and all discussions and deals should be documented and thought carefully through. We came across a situation that we wanted to share and get your opinion on. What do you expect when you sign a contract with an agent to either sell you your home or to help you buy a home? Do you really expect them to work hard for you? Help you achieve your goals with regard to selling or buying a home. But can you really depend on them to work hard for you and sell your home?

We all have heard of agents who focus on signing up listings and then you never hear from them again. All they are doing is listing your home. Then they let other agents actually sell your home. They still get half of the commission even though all they did was list your home. They also help you with the paperwork at the end. Pretty good income if you can sign up enough customers. Eventually, your reputation gets around. Before you know it both customers and other agents are shunning them and your house that you signed up with them to sell.

An Example of Real Estate Agents You May Not Want to Trust

A friend is selling their condo and has had it listed for a number of months with few showings and little interest. It is a tough market and everyone is looking for a really good deal as well as as many upgrades in place as possible. The agent is suggesting they spend $20k on upgrades and lower the price to make it sell. The owner is reluctant to give up this much money since they really do need it to help them with their retirement. This is part of their retirement package and savings and to lose $30 to $40 k is a lot of money that cannot easily be replaced.

The agent has indicated to our friends that if the unit does not sell they will buy it from our friends at a reduced price!  Sounds like a good deal but who wins in this situation? Who makes the most money? The market in their area is expected to really boom as the economy improves and the value of the real estate is expected to increase by 20% or more.

Real Estate Agents Always Win

We think the agent wins in every situation and our friends lose! Our friends upgrade their unit, spend money to do this and then lower the price. Maybe it will sell and maybe it will not, but either way, the agent either gets the commission or picks up a cheap upgraded condo! What do you think? Should they take this offer?

We really do not think so and in fact, we would suggest that they find a new agent since they cannot really trust this agent at all to look after their best interests to get the maximum deal for the condo they are trying to sell. The only one who wins in this situation is the agent who gets paid either way!

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Do you trust your real estate agent? Most agents are honest,. But some can twist or make it look like they are doing you a favor when they are really not. We recently ran across a situation that concerned us. We wanted to share it with our readers to find out if you feel the same way or have a different opinion. This solution can cost a great deal of money. You need to pay attention to what your agent is saying. Consumers also need to run the numbers to make sure that the cash flow and profit / loss works in their favor or at least delivers the best solution for them.

Trust your Real Estate Agent? – A Real Example

A friend of ours is selling their condo unit. It has been up for sale for a while with little interest by any potential buyers. The market is pretty tough right now with few buyers and lots of homes available. It is essentially a buyer’s market so if your home is not upgraded and looking great, buyers just have too many other homes to consider. The competition is pretty fierce and our friends must decide if they are going to continue to leave it on the market or take it off the market for a little while until conditions improve. The market can play a huge part in deciding on how much you want to charge for home.

They really do need the cash for their retirement and medical bills so there is some motivation for them to sell, but they are not in any kind of desperate situation either. The agent is recommending they drop the price and spend $20k on upgrades to make the unit more attractive to buyers. It needs new carpets, paint and really the kitchen and bathrooms should be upgraded. In total with the lower price and money spent they would probably lose about $40k from what they originally expected. This is a large amount and most people could not afford to lose this much money.

Is it a Deal

The agent has offered them a deal which is what we find a little difficult and we question whether we should trust her or not. Essentially if it does not sell in a few months the agent will buy it from them at the reduced price with the upgrades completed! They get a guaranteed sale but they are losing $40 k and what motivation is there for the agent to actually sell the unit? Not much as far as we are concerned. Why would she even try to sell it when she can pick up an upgraded unit at a low price.

Trust your Real Estate Agent – Make Your Own Assessment

Is this a good deal for the agent or what? They get a condo unit at a reduced price that has been upgraded and all they have to do is not sell the unit. Prices in the area have been increasing and there is a good chance in the next year that prices will go up further as the economy picks up. What do you think the agent is going to do? They will not work to sell the unit, pick it up cheap and then sell it as an upgraded unit or perhaps rent it out since the agent picked it up cheap! They may rent it out for a year while they wait for the price to increase.

Let us know what you would do? Our opinion is find another agent and get a second opinion.

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Do you trust your real estate agent to always act on your behalf and in your best interest? We came across a situation that suggests that maybe you should not. Maybe you should make your own informed decisions! At the very least take control of your situation and talk with a number of people before just accepting the opinion of your real estate agent. Here is the situation that we recently came across.

The situation is as follows. A friend is trying to sell their condo unit. It has been up for sale for some time without a lot of interest.  The market is a bit difficult now and homes are not moving as fast as the seller would like. They are considering lowering the price and spending some money to update a few items in the condo they are trying to sell.

The agent has another solution which could be self serving!

Lower the price to make it more attractive to buyers and make about $20k in upgrades to make it more interesting to those people who want new carpets, new paint and granite counter tops. If it still does not sell the agent has offered that they will buy it at the lower price. Good deal for who? We happen to think that this is a really good deal for the agent where they really cannot lose.

If it sells they get the commission. If it does not sell, the agent buys it and still gets the commission. It has been upgraded and will sell at some point. What does the agent know that the seller does not know? Well this particular market has increased over 25% in the past 6 months and this condo once it is upgraded could actually be worth more than what is being asked.

Consumers do not want to deal with construction and upgrading due in part to the cost. But mostly due to the hassle of hiring contractors and dealing with a mess that they just do not have time for or the patience for.

The seller is not going to take this deal, but it really shows you cannot trust your agent! What do you think about this?

Dealing with a Real Estate Agent in General

At best they are always under suspicion. They claim they are trying to help the customer achieve their objectives by buying a place they like at the best price. Or by selling a place again at the highest price. But at the end of the day, they have not made any money unless they close a sale. The good agents are the best at pushing customers to close deals. This is when they get their commission.

Most agents are anxious to close a deal and some cannot disguise their interest very well. You feel that they are more interested in closing the deal than saving you money. For example if you can reduce the price you pay for a home by ten thousand, that’s a lot of money. It is your pocket and not someone elses. Of course you risk losing the deal if the seller does not take your offer. But ten thousand is a lot and it will take you sometime to save that much if you spend it.

On the other hand the agent just wants the deal to close. Saving ten thousand reduces his commission five or six hundred dollars depending on what his commission rate is. He would like this money. But really he just wants the deal done so he can get on with the next sale to another customer.

Bottom line is always follow your own instincts and make the best deal for you with the input of several people, not just your agent.

A DUI attorney can make the difference between a hefty fine with a loss of your driver’s license and a criminal conviction that stays with you for life. A criminal conviction can mean that you are refused entry to other countries. It can mean that you are refused employment for certain jobs. The impacts go on and on. Hire a good DUI attorney to make sure you avoid a criminal conviction.

You may pay a large legal fee to avoid a DUI conviction, you pay a large fine and you may pay for having your car equipped with a breathalyzer but this is infinitely better than a DUI conviction. Make sure you discuss all of the options and alternatives with your DUI attorney.

DUI Attorney – Too Many Drinks

We have all done it from time to time. We have had one too many drinks at a party or at the bar and then jump in our cars and head home. In most situations, we are lucky enough to avoid having a serious accident and we do not get stopped by the police. But is it really worth taking such a chance? Most jurisdictions are increasing the fines and penalties associated with a DUI offense, so much so that many people are shocked and very concerned when it happens to them. Avoid drinking and driving if at all possible. In our minds, it is just not worth it. Taking a cab, sleeping over, or just not drinking is by far the better approach.

It used to be not too many years ago that you needed to blow over .08 to be fined for drinking, have your car towed, and perhaps spend a night in jail. Now laws have changed and it is now down to .05 % alcohol in your blood. For most people this can be just one drink depending on your metabolism, your body size, how much food you ate, etc. if you have one glass of wine, with a meal and then wait a few hours, most people will be ok for example.

Why Does a DUI Conviction Prevent Visits to Other Countries?

Whenever you are entering another country, you will be going through customs. You will be subject to questions about where you live, and how much money you are carrying. Also what your plans are and how long you will be staying in the country you are visiting? There is an entire litany of standard questions that they can ask. It really depends on your answers, body language, and a host of other factors that are too numerous to mention.

Occasionally, they will ask if you have a criminal conviction. A conviction of DUI charge is a criminal conviction in many countries. Consumers need to be aware of this. No country wants to allow criminals into their country regardless of the conviction. If you are convicted of a DUI offense, you definitely do not want to be crossing the border. If they ask about criminal convictions and you do not say anything, they can place you in jail. They can confiscate your belongings including your car if you are driving. At the very least they are going to send you back to your country and deny you entry, which is also very alarming and embarrassing if you are with other people.

The writer feels that it is just a lot easier to avoid drinking and driving. As we said earlier take a cab, sleep over or just don’t drink. You can still have a great time at a party and in fact, you may have even more fun at a party while you watch your friends make fun of each other as they lose their inhibitions.

There is always talk by the politicians about lowering interest rates on credit cards, however, the reality is that credit card interest rates are never going to be lowered unless there is some competitive pressure for rates to come down. In fact over the last 5 years, regular interest rates for investments and the best lending rates have been at historic lows. During this time frame, credit card rates have not budged. Sure there are some credit card products that offer low rates for 6 months on balance transfers. But then the regular credit card rates will kick in on any unpaid balance that is on the account.

Lowering Interest Rates on Credit Cards

The politicians make a lot of noise about placing pressure on the credit card companies. But that is all it is, just noise. They are just trying to look like they are doing something for the consumer and when they have received the publicity they are after, they quietly move on to other topics that are more newsworthy. In actual fact they never had any intention of doing anything to lower credit card rates at all. They know this and the credit card companies know this. They cannot or will not really do anything about it for a variety of reasons.

There are also some credit card products that do offer lower interest rates. However there is usually an annual fee that is charged in conjunction with these credit cards. Which brings the effective rate right back to the same rate. Or in some cases higher than a regular card with no monthly fee. Consumers should really do the math on these cards before they apply for and sign up for a new credit card. If you really do use your credit card a great deal and use some of the benefits that it provides, then maybe paying an annual fee will be worth it.

The politicians regularly investigate lowering interest rates on credit cards. This is a great political thing to do, but in the end, they usually do nothing except make a lot of noise about the investigation and nothing changes.

Using Credit Cards as A Short Term Loan

Most credit cards will give you a grace period of one month if you purchase something right after your monthly bill is calculated. This assumes of course that you pay the monthly balance in full on the due date each month. If you do not, interest is charged on the full balance including the amounts you charge during the month. All this can get very expensive with interest rates in the range of 20% for most cards. If you can pay the full balance each month, then it is an interest-free loan to you every month which can be quite valuable and convenient for many people.

Another point to consider is the number of credit cards that you have. We know that lowering interest rates on credit cards is not something that is going to happen. So really you only need one or perhaps two credit cards at the most. The writer has two cards mainly for emergency situations. Several times we have had our card declined for no fault of our own. Once the credit card system was down for one of our cards. No transactions were being processed, so we used the other one. Another time our credit card was compromised. We had to have it shut down by the bank. We were traveling at the time. Fortunately we had a second credit card to use to pay for travel expenses.

Lowering Interest Rates on Credit Cards – Pay on Time

We think that managing your credit card balances and paying the full balance in full on the due date is the most effective way of controlling your interest rate costs. Also effectively lowering interest rates on credit cards for us. Anytime you have an unpaid balance past the due date for your statement, consumers are going to be charged at the high rates that credit card companies charge. Try to avoid paying these high-interest rates. It just makes your purchases even more costly.

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If you need a DUI defense attorney, it probably means you were stopped by the police and charged with driving under the influence of alcohol or drugs, or both! This can be a scary time for many people. They are worried about embarrassment, fines, losing their driver’s license, or worse going to jail. Jail is a very real possibility if you are well over the limit. If you do not have enough money to post bond, chances are you are going to stay in jail for some time. Which makes everything else even worse than it was. At the very least you may spend the night in jail while you sober up. Which is another really unpleasant experience. It is difficult enough to sober up without being in a jail cell with a bunch of other drunks.

Although hiring a DUI defense attorney can be expensive, going to jail can be a lot worse. Hire a DUI defense attorney that has an excellent record representing DUI defense charges. It is your life and going to jail or losing your license can be catastrophic for many people. Hire the best DUI defense attorney you can afford! He may cost a lot, but you really cannot afford to not hire the best. Because you will lose your job and be in jail otherwise. Jobs are difficult to come by these days. You certainly do not want to lose your job because of being in jail for a DUI offense.

DUI Defense Attorney – Road Stops

There are DUI road stops all over the place. Sometimes the police will even advertise that they are setting up a roadblock to check for people drinking too much and getting behind the wheel. Contrary to popular belief they really do not want to stop you and charge you. They would rather you drove responsibly and avoided DUI charges, accidents, and even death as a result of drinking too much. Always go with a designated driver and avoid being stopped after drinking too much.

This is the main reason that they will advertise in most cities that they are setting up a DUI checkpoint. They might even indicate where the checkpoint will be just to get drivers to be more careful and not drink while driving. This is their main objective. They are trying to influence the general population to drink less and be more responsible when drinking. Many people feel that they set up these checkpoints to make more money for the town, city, or state. If that were true all they need to do is set up more speed traps and fine people for speeding. This would be much more lucrative and make them much more money.

Setting Up DUI Checkpoints

The reason that police departments all over the country are setting up DUI checkpoints is to try to make people more aware of what the impact of drinking and driving can be. The majority of people will either avoid the area or make sure they are not drinking that night or have a designated driver. There are a few that will risk everything and be defiant. They are the ones that the police really want to send a message to. If you are going to drink and drive, we want to stop you, and if over the limits established by the politicians, then they want to take your car away, throw you in jail and charge you with a traffic violation. They want you to get the message that there are serious consequences to drinking and driving.

If you drink and drive there is a far higher chance that you will also have an accident as well. Not only will you wreck your car, but you could also possibly kill yourself or someone else and you may be facing really serious charges as a result. Don’t drink and drive, have a designated driver who is not drinking, or just stay home. It is just not worth it.

Credit card debt is probably one of the most expensive kinds of debt that most people will deal with in their lives. Credit card debt carries a high interest rate that can really rack up huge cost quickly if you are not careful. Cards such as Visa and MasterCard usually carry an interest rate of approximately 18% to 19%. Store based credit cards are much more expensive and carry rates as high as 28% to 29%. With rates as high as these customers will have a difficult time and it will take a long time to repay credit card debt if you only pay the minimum each month.

What to do About Credit Card Debt

The best approach to credit card debt is to first of all pay your balance off on the due date. Never carry and unpaid balance past the due date. If you do, interest will be charged from the date that your items were first charged to the card. This may be a surprise to many users, however that is the way most credit card companies calculate interest charges. When this occurs many clients are very surprised at the amount of interest and how little of their payment actually goes towards paying off the principle. All additional charges are also factored into the calculations as well and the interest charges can become almost overwhelming.

If you cannot pay your credit card debt off at the end of the month on the due date using your own sources of funds, then the next best thing is to arrange for a low-interest personal loan and consolidate all of your credit card debt into the personal loan. You will still be paying interest charges, but it will be under 10% at today’s rates instead of being up in the high teens or high twenties. Once you consolidate your credit card debt with a low-interest personal loan, the next step is to get control of how you use your credit cards. Always make sure that you read the fine print and understand what the APR is for your loan. Some less than scrupulous lenders are charging upwards of 300% on loans. Car title loans are among the worst and consumers should stay clear of these types of loans.

Budget Your Money and Avoid Debt

If you do not have the cash, we suggest that you should not spend the money. If you do not have the cash this will mean that you will have an unpaid balance at the end of the month. An unpaid balance means paying high interest rates again.

Focus on repaying the personal loan you used to pay down your debt. Avoid using your credit cards as much as you can. The cost for debt is just too high. The real danger is that consumers will build up their credit card balance yet again. They still have to repay the personal loan they took out previously. Now what do they do when they have exhausted their credit limits?

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What is a bond ladder and why should you follow this advice? Your investment portfolio should have a mix of cash, bonds and stocks in it. The percentages of each will depend on your goals, your age, time to retirement and your risk tolerance. Maintain diversity in your portfolio. Most investors will not be caught losing a lot of money  if one company or one sector does not do well and tanks in terms of value. Owning bonds is one segment of this diversity component. More importantly you can protect yourself in the bond market as well.

Invest Well, Diversify

This article is about bonds specifically and how you should always ladder them. But first we suggest bonds from good quality companies, blue chip and paying decent interest rates. Which at the time of writing this article is only around three or four percent. You will want to make sure that your bonds are from several companies and / or governments to provide diversity. Lots of companies and even some governments have not done so well of late. You definitely do not want to have all of your investments in one place.

What is a Bond Ladder – Stagger Maturation Dates

Next they should have maturation dates that are staggered. In other words if you had ten bonds, each at $10,000, ideally they should have maturity dates that mature each year going out 10 years. This way you have only one bond maturing every year for a total amount of $10,000. Your average interest rate will move up and down based on the direction the market is going on interest rates. Some years the interest rate at renewal time will be high. While others the rate will be lower. Either way only a small portion of your portfolio will be renewed in a year. You will be somewhat protected from the fluctuation of interest rates.

Near Term Investments

This assumes of course that you have a longer term investment strategy and are not saving for something specific in the near term. Near term investments would be better off in GIC’s that do not fluctuate in value and pay a fixed low interest income for various maturation’s. They can be purchased in 30 day, 6 months and 1 year maturation’s, but traditionally have not paid a very high interest rate.

Bond ladders that are invested across several companies with various maturation dates are the best way to protect your long term investments from the always changing market. In the worse case, you do not want to have to cash in all your bond investments to live on in retirement when your bond value has dropped. Interest rates have risen, or your bond is worthless because the company went bankrupt are examples. Laddering them and sticking with blue chip companies will help to ensure that you never face this reality.

Evaluate Bond Investment Risk

There may be higher interest rate bonds available. However always evaluate the risk of your principle being there when the bond matures. Also the risk of always receiving your interest payment every month or every six months depending on the type of bond that you have.

Some bonds will be callable. Which means that at a certain time, the company can cash in the bond and return your principle along with accrued interest to you. They usually will do this at a time when interest rates are lower than what they are paying on the bond that you own. They can borrow money at lower rates and reduce their overall cost of borrowing money by doing this.

If you are buying corporate or municipal bonds always confirm if your bond is callable or not. Most investors do not like surprises. This can be one surprise you may not want to have. When the bond is cashed, you do get your money back, but now you have to invest it at a lower interest rate which is not always to everyone’s liking.

For more information on bonds and bond ladders, click here.

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If you need a DUI defense lawyer, you have probably been stopped for drinking while driving, taken a breathalyzer test, and been charged with a criminal offense of DUI. You may have taken a breathalyzer test at the location where you were stopped. Then taken to the police station for further tests to make sure that the initial reading was correct. You may suddenly realize that if you are convicted of this charge that your life could be impacted significantly in a number of ways. First off all there is the embarrassment of being charged and having to go to court.

You really do not want family and friends to know that you were caught drinking and driving. You do not want them to know that you have been charged and could lose your license. This is traumatic for most people and certainly, no one really wants to talk about it.

DUI Defense Lawyer – Legal Fees

Secondly, there are legal fees and fines that you are going to have to pay regardless of whether you are convicted. Or even if you somehow escape a conviction. Then there are the physical penalties which can include jail time and house arrest. Also driving restrictions in terms of losing your license or having a breathalyzer device installed in your car. The cost of all of this can range from many thousands of dollars without considering the loss of income. Legal fees alone could cost thousands depending on your situation and the lawyer you hire. Your bank account is going to take a big hit no matter how you come out guilty or not guilty.

A DUI defense lawyer may be able to contain your conviction and may be able to keep your fines to a minimum, however, you will still have substantial legal fees to deal with in situations like this. The legal fees alone can come to over $5,000 just for defense and to get a warning with no conviction.  One wonders why people drink and drive in the first place when there are all of these possible ramifications which can impact you for the rest of your life.

An Example

A friend of ours was stopped and charged with a DUI offense. He estimated that by the time he paid to get his car back from the impound lot, hired a lawyer to represent him in court, and pay the fines that he would likely have to pay; the cost would be around $10,000. This assumes that he is able to retain his driver’s license. Also not have to give up driving for a year or spend any time in jail. This is a lot of money and probably more than many people have just lying around. These are serious deterrents to drinking and driving. Not to mention the damage you might cause if you also had an accident while driving.

Impact on Your Auto Insurance

Did you know that some insurance companies have in their policies a special ride? It basically says that if you are charged with a DUI and convicted, they will not insure you for any damage done to your car or truck. Your vehicle could be totaled as a result of an accident. It might not be covered at all due to your DUI conviction. You also might not be able to get car insurance coverage from this same company again if you have an accident. At the very least the rates are going to go way up.

Hire the best DUI defense lawyer you can find for any situation involving a DUI charge. Avoid all of these or at least the most serious of the possibilities. Even if you have to pay the lawyer and the penalties associated with getting your car back from the impound lot. This is a far less expensive option compared to dealing with a DUI conviction. Which also happens to be a criminal conviction.

Is there any such thing as low credit card rates? Low credit card rates do exist in various forms. However, consumers must be very careful about the terms and conditions associated with these cards. The most popular is the situation where a new credit card is offered to you. You are also offered no interest or low interest on any balances transferred to this card for the first six months. Sounds pretty good, doesn’t it? Particularly if you are already carrying a balance on another credit card and paying 18% or more on that balance. You get in effect a low-interest loan for a short period. You save the interest you would have paid on another credit card which was probably at the usual rate of 18 to 20% interest.

This will work well for many people who are then able to repay this amount that was transferred within the specified time. If you do not, the rates revert to the regular credit card rates of 18 to 20% on the full unpaid balance. You have been able to save some interest. But then you are right back where you were a few months ago. The only way to get out of this circle is to really pay the balance back. Avoid paying interest at these high rates.

Low Credit Card Rates – Interest Rates

Some credit cards with low credit card rates also come with either a monthly fee or an annual fee. This in effect adds cost to the money borrowed and replaces the interest that you have supposedly saved.  These annual fees can be as high as $100 or even more every year. Credit cards that charge for their services usually come with other benefits as well which some consumers find very useful and valuable.

Benefits such as car rental insurance, health insurance for travel, travel insurance, and insurance on items purchased are just a few of the benefits that many consumers values. One area that many people really do make use of is the points that they accumulate over time. These points can be used to buy things, pay for flights or hotels, and even entire vacation excursions.

Depending on how much you use a credit card, these points can really add up and become quite valuable. Do the math and make sure that you are receiving sufficient benefits from the credit card before signing up for one with an annual fee. Make sure that you also use them as well to ensure that you actually gain this benefit.

Verify the Benefits

Before you apply for a credit card check all of the benefits. Evaluate how much or how valuable these benefits are to you. Take the time to think about how and whether you will actually use them or not and then what the value is for you. Your decision will determine just how low your low-interest credit card actually is.

Another factor to consider before applying for or accepting a credit card offer you have received is the impact that adding a credit card will have on your credit rating. Every time you add a new credit card, you add more potential debt since credit rating agencies assume that you will use that credit at some point. The greater the potential debt and the greater the potential monthly payments compared to your income, the lower your credit score is going to be.

Too Many Cards, Bad Credit Rating

We have seen people with no real debt, everything is fully paid up, but they have five to ten credit cards. Their credit is in the toilet even though they do not owe a thing to any of them. They pay their credit card balance in full at the end of each month. This is a sure way to lose your credit rating.

This will make it very difficult to find a competitive loan when you do need a car loan, a mortgage, or a personal loan for whatever you are planning.  We suggest that you try to stick with two or three cards at the very most. So be careful when you accept a new credit card and understand what it will do to your credit rating!

For more information on credit card interest rates and more, click here.

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Every person and every couple at some point in their lives needs to think about the consolidation of debt. This is debt that they owe to other people and companies. It is usually in relatively small amounts. They need to bring it together into one loan. Usually at a lower interest rate compared to other debts that they have.  The usual culprits are credit cards. But sometimes it is a combination of car loans, mortgages, and personal loans. As well as credit cards that you may use every day. Consumers usually use credit cards for their everyday expenditures. In addition to larger purchases that they may buy from time to time.

Consolidation of Debt – The interest rate on Credit Cards

Credit cards are great tools as long as you can repay them at the end of the month. Not so much if you trigger interest charges on any unpaid balances. If you do they are going to charge you 18% to 20% on the unpaid balance. This is really where consolidation of debt can pay off. Consolidation can save consumers a lot of money in terms of interest charges. You are still going to have to repay the balance. But while you do you will be charged a lower interest rate after the consolidation of your debt.

Combining your credit card debt into one low-interest loan will decrease your monthly payments, lower the interest that you are paying and provide you with some relief in terms of your cash flow. You should be able to focus the extra cash flow on repaying your debt that much more quickly. Some people will remortgage their homes and consolidate their debt into a new mortgage payment at a low-interest rate. Not only do you save money in terms of the interest that you pay, but your payments on a monthly basis are also much lower since they have been amortized over a longer period as well.

Consolidation of Debt – Improve Credit Rating

This is a win-win situation for all concerned and many people benefit from the consolidation of their debt every day in this manner. It is also interesting to note that taking this step can also improve your credit rating since you have fewer debt instruments charged to you and your potential payments are less as well.

Your bank manager or bank loans officer can help you with a consolidation loan, however, there are more and more online lenders offering consolidation loans as well. We suggest you be very careful with these sites and provide a lot of private information until you are sure you are dealing with a reputable site. There are just too many sites that collect personal information and then resell it to be used in creating fraud situations. If you are concerned about this deal with the old brick-and-mortar banks to obtain your debt consolidation loan. Consolidation of debt should cause your total monthly payments to decline and this step should also mean you pay less actual interest to the credit card companies.

We recently read an article about a DUI road stop in Palm Springs California. It was set up one weekend to catch people who were drinking and driving. The article was giving the results of the road stop and it was pretty interesting reading and quite surprising as well. Before we give the results of this road stop we want to point out that the police even advertised and let it be known that they were going to set up this road stop. The advertising for the DUI roadblock was in the paper, on the radio, and on TV. It was also probably all over the internet. We still wonder why so many people still get stopped and charged when all they had to do was avoid the area in the first place.

The good news is that only one person is going to need an attorney for his DUI defense. There were 166 cars stopped and several were taken off the road due to various problems, but only one person was charged with a DUI offense. We thought that this was pretty good. It could mean that people knew about the DUI roadblock and just avoided the area. Either way, it is a good result to know that there were so few people actually on the road driving under the influence of alcohol and being intoxicated.

Attorney DUI – Expired License

But the really surprising thing about this DUI roadblock is that 5 people were fined for driving with an expired license. Six people were driving with no license at all. We found that this was quite surprising. These people are going to need lawyers or they can just pay the fine. Can they drive ok? Do they follow the rules of the road? Why did they not have a license? Did they have a license at one time and lost it due to some other driving offense?  They probably also did not have car insurance either. What happens if you’re in an accident with one of these drivers? No insurance on their vehicles and you have no recourse to sue to help with your own expenses!

No Insurance

They did not say anything about car insurance and whether these cars were insured or not. We do not know if it is a traffic offense of any kind in California to drive a car with no insurance. I sure do not want to be hit by one.

So now when you are out in your car, not only do you need to be concerned about people driving while under the influence of alcohol or drugs, but you also need to be careful of people who do not even have their licenses. Can they drive? Do they even know the rules of the road, stop signs, yields, turn signals, etc? Drive defensively when you are on the road to make sure that you anticipate what the other guy is going to do to avoid an accident. Always avoid driving when you have been drinking, even with one drink. For some people, even one drink and put them at or just over the edge when it comes to testing for DUI. Why take the chance of being stopped and charged or having your car taken away?

Palm Springs continues to set up roadside DUI checkpoints. They continue to pull in more people for other traffic offenses than just DUI. We think that this is a good thing. Everyone should stay alert when driving and make sure that they follow the laws. Most people do follow the laws. But there are those few that just cannot seem to get it right for some reason.

There are so many credit card products on the market these days; it is very difficult to know which ones are the lowest-rate credit cards. They all offer various features and benefits that many people find very attractive. There are credit cards that are aimed at the mass market. They have the usual high-interest rate and a number of benefits that appeal to many consumers. Then there are credit cards that are aimed at specific segments of the market. These are people who might want to collect airline points for example. Or people who like the idea of having insurance on everything they purchase. Including car and travel insurance when they use their cards to pay for those items.

We have used credit cards ourselves and looked at the various products that are on the market. We have come to the conclusion that different cards really do make sense for various people. This is based on what they want out of their cards. It is not always the lowest rate credit card that always makes sense for everyone. Some consumers really can utilize many of the benefits that come with credit cards.

Lowest Rate Credit Cards – Good Intentions

Let’s face it, when you first get a credit card, you have good intentions. It will only be used for emergencies and for those times when you do not have the cash handy for you. You plan to always pay the balance in full every month to avoid interest charges on the unpaid balance. This was certainly our objective and plan when we got our first credit card. We were not even that interested in what the interest rate was because we had plans to always pay the unpaid balance every month.

Well, that seems to work 90% of the time. There are occasions when we just do not have the money and we need to carry a balance over the end of the month. Suddenly we are very aware of what that interest rate is and how important it is to pay it off as quickly as possible. This is what got us started looking at credit cards and what they cost. We also started including the benefits of the cards as well to see if that made a difference.

Get Back to Basics with Credit Cards

With all of the products that are available, we decided that it is better to get back to basics and focus on the lowest-cost credit cards.  First of all, there should never be an annual fee for using the card. Secondly, you want to find a card with the absolute lowest interest rate just in case you do have an unpaid balance. This is really the best place to start. You will likely have a number of cards that fit this category.

Next, most consumers will want to now compare many of the benefits. Whether it is pointing towards airfare, goods that you can purchase, insurance for rental cars, insurance on things that you purchase, or health insurance while you travel, they all have value to some consumers. The situation with these cards is that there is usually a cost to these cards and now the big decision. Will you make sufficient use of these cards and the points to offset the additional cost of a card that offers benefits?

Lowest Rate Credit Cards – Use the Benefits

Based on my personal experience, we use all of the benefits that are listed in the previous paragraph, however unfortunately for us, we really do not use them often enough to make it worthwhile. If the added cost of the card with benefits is around $100, then you really need to make sure that you get $100 in benefits that you actually use every year. Some years we have received much more than that while in other years we do not even come close.

The bottom line for us is that the lowest-rate credit card is really a card that has the lowest rate and the benefits are free. Be prepared to spend some time shopping around to find the best deal for you.

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Leading up to Christmas 2012, there was a great deal of news about the fiscal cliff the United States was facing and how these two guys in the picture  let it go right up to the last minute until one of them blinked. Fortunately for the president, the other side blinked and they extended the debt ceiling until the end of March 2013. Now we get to go through this all over again while the politicians play politics with each other. But what about your own personal fiscal cliff?

Your Personal Fiscal Cliff

Unfortunately many people are facing their own personal fiscal cliff, but they do not have the solutions that the president has. They cannot print more money and they cannot always raise their debt ceiling. Bankers and lenders who decide if they are going to lend you money can decide not to or they can just increase the interest rate they are charging for the loans that you may need. A personal fiscal cliff can happen any time and all that is needed is some unexpected expense and suddenly you are facing a credit crunch. For many people,  unexpected expenses will be medical bills or major damage to their homes from storms.

The personal fiscal cliff is very real for many people. A combination of mortgage on the home, personal loans for the car or other items and their credit cards may be close to be max’d out generating high levels of interest payments. This is probably the worst situation to be in for many people who have not balanced their own budget and have not matched their income with the monthly payments they have. This is their personal fiscal cliff and it is quite scary if you cannot make your payments and facing foreclosure or are having debt collectors calling you all of the time.

Take control of Your Finances

Don’t be like the president and run it down to the wire or the last minute. You do not have the leverage he has and the results can be catastrophic on a very personal level. Talk to your banker or lender, consolidate your debt and put a plan in place to repay your debts as quickly as possible to avoid falling over your own personal fiscal cliff.

Consolidation of credit cards for example can reduce your monthly payments and significantly reduce the interest you are going to pay. This approach will free up cash flow you can use to reduce your remaining debt and make a huge difference to your debt situation as well as maintaining or improving  your credit rating. Talk with financial managers, talk with lenders and seek help to resolve your situation. Doing nothing about your looming fiscal cliff is really not an option for most consumers.

Take control of your situation and reduce the overall cost of the money that you owe. It is money in your pocket if you can reduce the total amount that you owe.

There are a number of reasons that you will want to hire a lawyer for estate planning purposes. The first and most obvious one is to prepare a will. A will that will distribute your assets in the manner that you feel will be best. In addition to a will, most people will also arrange for a living will to be prepared. A living will tells your family how you want to be looked after when you can no longer make decisions for yourself. While this is not technically part of estate planning most lawyers will encourage their clients to prepare this will as well. If you do nothing else, make sure that you have completed these two steps prior to starting estate planning.

Most lawyers will encourage clients to plan their estates to minimize taxes at the time of death which includes probate taxes. Although they are not accountants, a good tax lawyer can assist clients with taking the right steps to protect themselves. This includes taking the steps needed to reduce taxes at the time of death. They will also provide guidance regarding some of the risks associated with these steps. Also ways to avoid any major problems based on your personal situation.

Hire a Lawyer for Estate Planning

The complexity of your estate will determine what professionals will be needed. They will assist you in planning your estates probate and your overall estate plan. Most people have a home, a car, personal effects and their investments. All of which are subject to probate unless they are jointly owned in which case they just move to the surviving spouse or family member with no probate necessary. Registered investments will be taxed on the day of death unless they are transferring to a surviving spouse. Again check with the experts were you live since various countries and even states may treat these issues differently.

A common way to minimize probate taxes which your lawyer will discuss is to place the assets in joint ownership with your surviving spouse or with another family member. The client will retain ownership and management of the asset until such time they pass away. At that time all assets that are jointly owned would transfer with no taxes to the remaining owner. Safeguards need to be in place to protect the client. You want to avoid the assets being sold when they are no longer able to make their own decisions.

Complex Estates

Estates can become very complicated especially if they have many properties and assets of different kinds. Plans should be drawn up to manage the transition to new owners. Or to have the assets sold to maximize their value for the estate. The executor should be carefully chosen to ensure that he or she can carry out all of the instructions of the will. The executor and your lawyer will work closely to ensure that this occurs as planned.

Hire a lawyer for estate planning and possibly also accountants to make sure that all tax laws are met while at the same time the taxes that must be paid are minimized. Some financial advisers also provide this function as well. Estate planning should be arranged and completed while the client is still of sound mind and can make the necessary decisions.

A word of caution. Anyone who charges a fee and makes more money if you follow their advice should be suspect. If they prepare recommendations which if followed generates income for them, get a second opinion. We suggest getting a second opinion from someone who will not benefit from the transaction. This will make sure that it is really in the financial best interest of the person the estate plan is being developed for. There are just too many advisers who will recommend financial plans that make them money and cost you a great deal.

Debt management is playing a large part in everyone’s life these days and if they have not made the right decisions, their debt is going to cause huge problems for them in a couple of years.  The act of managing your debt is making sure that you always can pay your debts in terms of meeting your monthly obligations or payments. It means that when interest rates change you have already taken this change into account and have planned for it. Be proactive and do not wait for problems to start. If you wait they are usually going to be much worse than they need to be.

Debt Management – Interest Rates To Rise in the Next Few Years

As we write this post the Federal Bank in the US is suggesting that interest rates will rise soon in the next year or so as the economy improves and worries turn from a bad economy to one of inflation. The Canadians also say the same thing about their economy and plan to raise interest rates sometime soon. Neither will give an exact date since it depends on what is happening in the economy.

Most bankers will take steps to control inflation, and the single way they can do this is to raise interest rates to make it less attractive to borrow money, which has the impact of decreasing spending. Fewer people are buying products and services so prices stop rising or perhaps even decline a bit. Consumers also take on less debt at times like these.

But What If You Have a Lot of Debt Now

If you do have a lot of debt now, you could still be ok if your interest rate on this debt is locked in for a few years. With a mortgage that has another 4 years on its term, for example, you need not be concerned about interest rates going up in the next year because yours will stay the same. On the other hand, if your mortgage is going to be renewed in the next year or so, then almost certainly your rate is going to increase, and your monthly payments will also increase.

If you are managing your debt you have already taken into account that the payments are going up and have a plan to deal with this increase.

Debt Management Solutions

There are several solutions to managing debt in situations where interest rates are rising. We will cover them in the following paragraphs.

Avoid More Debt – the first one is the obvious one. Just avoid taking on more debt. Keep your debt low and avoid loans for the toys we all want, the 2^nd car, the boat, etc., etc. When interest rates do rise, you will be less affected than others who have lots of debt.

Salary Increases – either by receiving promotions, salary increases, both spouses working, or by taking on second jobs, you find the money to pay the extra payments when interest rates rise, and your monthly payments also go up. This approach has a big impact on quality of life if you take a second job and you cannot be sure of the salary increases. As well, what would happen if one of you lost a job?

Make a Special Payment

You can save some money when there are interest rate increases and renewals of your mortgage. Use spare cash to pay down the mortgage and recalculate your monthly payments. If interest rates increase, it will drive up your payments. The additional payment on your mortgage will bring the monthly payment down. If you have done your homework, the new payment will be very close to the old one.

Pay Your Mortgage More Quickly – most mortgages and all personal loans allow for extra payment once a year. The effect of making these special payments is that you are paying more principal with each payment, decreasing the life of the mortgage and reducing the total of what you owe. At renewal time, you can often keep the same payment you had, even though interest rates have increased.

Assess your situation and Apply Debt Management Techniques

Everyone’s situation is different. We have covered a couple of suggestions in the preceding paragraphs. The important step to take is to assess your situation, analyze the impact of an interest rate increase on you and your family and then evaluate solutions that will allow you to maintain the quality of living you are currently enjoying. It takes a bit of work, but what doesn’t, especially if there is value at the end? Get started on debt management today.

Interest rates on credit cards seem to surprise many consumers at just the wrong times. Most people know that the interest rate is higher than most personal loans and that it makes really good sense to pay off the balance each month to avoid these high rates. The reality is that they sneak up on us and suddenly it is the end of the month. The total amount is due at that time, the due date,  if we want to avoid triggering any interest. You cannot even be one day late or they will charge interest on the entire amount for the past month. Always pay on time!

Interest Rates on Credit Cards

Unfortunately we do not have the cash ready to repay the full balance and we resign ourselves that we will have to pay interest on the unpaid balance. This is only part of the bad news. Actually we will have to pay interest on this unpaid balance, plus on anything, we charge to the card in the coming months until the balance is fully paid.

Some cards will hit you even harder. Even though you may have paid some of the amounts that is owed, the interest charged will begin from the time when you first charged these items to your card including what you paid off.  At 18% for regular cards and at 28% for department store credit cards, the interest charges can build up really fast.

There are many credit cards available these days from many different companies. They all have a twist on what they offer. Some will vary the interest rate they offer and even lower it for some temporary period of time. In turn they may charge an annual fee. They may also provide a grace period for any amount of money transferred to them from another credit card.

What Numbers Should We Focus On

The interest rate charged on unpaid balances is really the number that all consumers should focus on. This is the amount of money they are going to take from your pocket when they charge you for that unpaid balance. They also will add a number of other benefits that many people may find attractive, however, if you are unable to make use of these benefits, then they really are not that valuable.

If these benefits are valuable and you are able to take advantage of them while paying the balance off each month, then you may be receiving real value for the card that you applied for and received.

When you are deciding which card to apply for, make a list of the features you are looking for and compare these features to choose the one that makes sense for you. Weigh this decision against the interest rate charged on these credit cards to make your final decision. Most people will give much more weight to the interest rate charged, however as we mentioned, if you have the discipline to repay the credit card each month, your decision may be made based on benefits alone.

What Credit Cards to Avoid

Most people would suggest that credit cards from department stores should be avoided. As we mentioned previously if you have the discipline to repay the balance in full each month, these cards can actually save you money at times.

For example if you purchase furniture and the department store gives you six months free on your credit card from their store, then you may have a really good deal. Again, at the end of six months you really must have the money to repay the balance to avoid really hitting interest rates on these credit cards.

Annual Fees

Don’t forget that some companies also charge annual fees regardless of whether you use the card or not. This charge really increases your effective interest rate whether you have an unpaid balance or not. These cards sometimes have much lower interest rates for their unpaid balances. But then they make up for it by charging an annual fee.

The annual fee can be as low as $30 and as high as $100 or more. This can be substantial for some people. You really have to evaluate whether it is worth it or not to pay these annual fees or not.

Consumers can also have too many credit cards. Sometimes this will negatively impact your credit rating making it more expensive to obtain personal loans and mortgage loans. Before applying for a new credit card give some thought to what the impact will be on your credit rating. Also review the interest rate charged.

For more about credit card interest rates, click here.

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The highest credit card interest rate is around 28% or 29%, depending on which department store you have a credit card with. These department stores often advertise no interest or low interest for some defined period. They often do this when you purchase furniture. Once this time frame is over, the full interest rate is applied to any unpaid balance on the credit card. This is a very high-interest rate when you compare it to personal mortgages that are below 5% at the time of writing this post. Personal loans carry a higher interest rate which depends on the credit rating of the applicant and whether the loan is secured or not.

Most bank credit cards range from 10% to 18% depending on the type of card, whether there is an annual fee or not, and whether there are other benefits that are included with the credit card. Most store-based credit cards do not offer additional benefits unless it is precise with the store. They focus initially on making the sale for the item you are buying and then focus on providing you with a credit card to charge it to with free interest for a while for the first purchase.

Convenient Highest Credit Card Interest Rate

Store credit is very convenient, especially when purchasing large items such as furniture or appliances. Consumers may not have sufficient credit limits on their current credit cards, and when the store offers them a credit account with a credit card to purchase the appliances, etc., most consumers will jump at the chance.

They may not realize this, and they probably will not have it explained to them at the time about the high-interest rates. The store management already knows that a certain percentage of customers will not pay the balance in full at the end of the month. They know they can start charging these high-interest rates and make even more money off this unsuspecting consumer.

High-Interest Rates

Rates that are this high, upwards of 28%, have a huge interest component each month. When you get your bill, a minimum payment is always specified. This payment will consist of the interest you owe for the month plus a small principal amount. A small amount of principal is paid each month. It will be years before your credit card is paid in full. Consumers will have paid the store credit card company thousands of dollars in interest.

This is actually what they are counting on so they can make more money off of each consumer. In fact, they will make more profit off the interest charged to consumers than they do for the products they are selling in some cases. They are counting on you not to pay the balance when it is due. They want you to start paying interest on that unpaid balance. As we mentioned, they would prefer their customers to do this so they make more money on the interest.

Pay Your High-Interest Credit Card Balance in Full Each Month

Even if you have to take out a personal loan, increase your mortgage or find the money somewhere, consumers would be further ahead in borrowing the money to pay these credit cards in full at the end of the month. They will still pay interest. However, paying 10%, compared to 28%, is almost a third of the cost. This represents a substantial savings for the consumer. These savings can be applied to the loan enabling consumers to repay the loan much faster.

Consider a personal loan, a secured loan, or a mortgage consolidation loan to repay your high-interest credit cards. You will save thousands of dollars. Even if you have to pay appraisal fees or other expenses within reason, of course, you will be further ahead.  Ask your financial loan manager to help with the calculation of the savings. Determine just how much you will save by taking this approach. You will be amazed at the savings that are possible. You will have more money available to repay the debt that you owe as well.