I'm now paying more than the policy will pay out at death

Filed under: Banks , Borrowing , Budgets , Debt , Wealth The status of using a credit card to pay for dinner, a movie, clothes or anything else you need or want immediately is a lot of fun to have -- until the bill arrives. And the joy of using a credit card, as almost everyone who has used one on a spending spree or a weekend out knows, can easily turn to sorrow a month later, if the bill isn't paid on time. Late fees, not paying off the balance each month, and 18% or higher interest rates add up and turn that $250 night on the town into a $300 debt. With more people watching their spending in a sour economy, and the enticing lure of a credit card just sitting in their purse or wallet unused, more Americans are rethinking how they pay for things. Credit cards are so out. Here's an example why credit cards are dangerous, according to the Delaware County Office of Consumer Affairs : On a balance of $2,000, making the minimum monthly payment, such as 2% of the outstanding balance or $20, whichever is less, can take 22 years to pay off at 19% interest. Interest payments will total nearly $4,800, which is more than double the original $2,000 borrowed 22 years ago! OK, so it gets somewhat better if the monthly payment is doubled to 4% of the balance owed, shortening the payment time to seven years instead of 22, and saving about $3,680. Continue reading What's out: Paying with credit cards. What's in: Paying with debit cards. What's out: Paying with credit cards. What's in: Paying with debit cards. originally appeared on WalletPop Blog on Sun, 30 Nov 2008 09:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

Filed under: Fantastic Freebies Rayovac is offering a coupon for $1 off any pack of its batteries. Click here to print it. Rayovac batteries can be found for $1 per pack in some stores, so all you'll need to pay is tax if you buy a small pack.Rayovac Batteries originally appeared on WalletPop Blog on Sun, 30 Nov 2008 06:48:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Extracurriculars , Travel Disney World (and I can't believe I'm writing this) was once the ultimate family destination for many of my friends. I can specifically enumerate examples of friends for whom a Disney World vacation was such an important life event, they planned future childbearing and other major personal decisions around the family trip -- and, what's more, planned the trip more than a year in advance. Disney World has been, for many families, truly a signal that they've arrived as consumers of American culture. For this year already, 10% fewer families have arrived. Disney earnings, released a few weeks ago, indicated that visits to its iconic amusement parks were down 10% this year . And, indeed, the stock has been depressed as investors expect "Armageddon at the parks." The fact is that families strapped for cash to heat their homes and buy groceries are probably going to avoid the indulgent and expensive family vacations. The coming credit card meltdown is sure to put a dent in families' ability to use credit card points for "Disney Rewards," as well as reducing the main way many people finance their magical vacations. And these days? Conspicuous consumption is over; and enjoying your family is coming back. If Disney World is out, public parks are in. Continue reading What's out: Disney World. What's in: Public parks. What's out: Disney World. What's in: Public parks. originally appeared on WalletPop Blog on Sat, 29 Nov 2008 16:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Extracurriculars Marriage may be hard work, but divorce can be financially cataclysmic . Can't happen to you,? That kind of denial is one reason that divorce brings about economic disaster, since planning for that eventuality seems disloyal. Nonetheless, 43% of first marriages in the U.S. end within 15 years , according to the CDC. One in five will end within five years, one in three with ten years. The statistics vary according to a number of variables, and divorce360.com has created a Marriage Calculator (which I'd call a divorce calculator) that, based on the averages taken from census data, will give you odds on your marriage lasting. Enter gender, date of marriage, education, age when married, and number of years married to calculate the estimate. For example: If you are a male high-school dropout married after 1980, at the age of 20 or younger, and have been married for five years --13% of people with your background have already divorced, and 26% will be divorced over the next five years. If you are a female without children married after 1980 with a high school diploma who was 22 to 24 at the time of your marriage and have been married two years so far -- 2% of those with similar backgrounds have divorced already, and 13% more will do so over the next five years. Female with kids, married 1960-1979, college grad, married at 23 or 24, and have been married now for 30 years-- 28% of those sharing your background have already divorced, and 2% more will divorce over the next five years. I'm pleased to report that 0% of those sharing my background will divorce in the next five years. Of course, these are very coarse projections, but if you are in a category with high divorce rates, you might want to learn a little more about why marriages fail so you can head off possible destructive conflicts. Read more: Five steps for cleaning up your credit after a divorce Divorce Calculator shows odds your marriage will last originally appeared on WalletPop Blog on Sat, 29 Nov 2008 12:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Saving What could be more a more traditional gift to teach a youngster frugality than a piggy bank? We've found some very interesting takes on the old standby that would make great gifts (especially if some jingle-jangle is already on deposit). First, however, our candidate for either the most moronic or ironic, depending on your point of view: the Boob Job Money Jar from Wake Up Frankie. Combine this with the Florida surgeon's book for four-to-seven year olds explaining mom's new rack, "My Beautiful Mommy," for a a truly tacky gift. Some of my favorites -- The Wine Money Bank ($12.95), for the wino on your list The Skate Boarder bank ($12.95). which should be given out by your local orthopedist The Cyborg bank (I'm a Sarah Conners Chronicles fan, so this resonates with me) $29.95 The Viagra Fund bank ($24.95) The Auto Save bank , in the shape of a large computer 'Save' key The Sperm Coin Bank The Coin Commode Toilet Bank Boob Job Money Jar and other inspirations to save originally appeared on WalletPop Blog on Sat, 29 Nov 2008 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Reduce, Reuse, Recycle , Shopping , Simplification Now that I've self-identified with the "frugalista ," it's already time to buckle down and start budgeting for the rest of the holiday season. Frugalistas are known for spending little on typical consumer goods (think expensive decorations, electronics and clothing) but maybe a little more on good food (that they cook themselves, natch) and what I like to call "vital luxuries"; maybe a couple of hand-made wooden toys for their children, or a top-of-the-line food processor (the easier to make great dinners at home instead of going out). So: what is in the frugalista's budget this year? Here's how my Christmas spending plan breaks down: Christmas tree: Purchased from a local charity I believe in , $40 Food: Extra organic cream, some direct-trade shade-grown chocolate, and a heritage turkey from a local farm, plus a couple of splurges on cheeses and cured meats from my favorite farmer's market vendors, an extra pound of coffee for my dad, about $200 Toys: One or two hand-made wooden toys for each of my three little boys, $120 Crafty: Four skeins of yarn to complete knitted Christmas gifts, $60 Stockings: A trip to REI to get socks and new bike lights for my boys' stockings, $50 Husband: New fenders for his bike, $30 It adds up to $500 all told (and my husband has already earned the money working more than usual in November); I'll make gifts out of materials I already have for my sisters and nieces, and each of my boys will get a new handmade stuffed toy. I'll wrap my gifts in recycled paper from years past, or newsprint that the boys paint for me; we'll make holiday cards out of one of a million different Martha Stewart-inspired recycle-y ideas. That's how this frugalista plans to spend her holiday money; how about you? What does your holiday budget look like?Holiday spending plan: Where are frugalistas using their budgets? originally appeared on WalletPop Blog on Sat, 29 Nov 2008 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Bargains , Home My last TV cost me $20,000. Well, the TV itself didn't actually cost twenty grand, but being the serial home improver that I am, that single appliance purchase ignited a viral home improvement spree that spanned two floors. It included new furniture to fit the TV, new paint -- because you can't put a new TV in a room with walls needing paint, and newly finished hardwood floors -- because what would the neighbors think seeing a new TV on a floor that was dull and scratched? Not willing to leave well enough alone, I took the project upstairs where new wall to wall carpet, paint and furniture made absolutely sure that new TV would fit in just perfectly. That was then, this is now. Not only would I not buy another new TV, millions of Americans (who I'm sure think a TV would look fine in their homes just the way they are) won't be buying a new TV either. Instead they'll invest in one of the hottest trends in gadget purchasing: buying refurbished. A refurbished gadget isn't "used." But it is fair to say that it was "previously owned." In most cases, a refurbished product is one that was purchased but then returned to the retailer who sends the unit back to the factory to be tested and repackaged. Deals are a many with some refurbished products selling for 25% less and include the original full factory warranty. Continue reading What's out: New gadgets. What's in: Refurbished gadgets What's out: New gadgets. What's in: Refurbished gadgets originally appeared on WalletPop Blog on Sat, 29 Nov 2008 09:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Fantastic Freebies Even before the turkey leftovers run out, millions of American will be unpacking their holiday decorations, hoping to set up light displays bright enough to be seen from the International Space Station. If instead of blinking lights, you discover your light strings are on the blink, here are five fast and easy ways to get the joy back in the joyous season: Inspect - As you unpack your lighting supplies, begin with a visual check of the items that starred in your displays last year. All should bear the UL (Underwriters Laboratories) seal of approval and be free of broken or cracked light sockets, worn or frayed wires and loose, damaged plugs. Test - Before you hang the light string, test each string to be sure it still works. Even if it was fine when you put it away last year, home improvement gremlins may have set in and caused a bit of mischief. Secure - If the light string isn't working, unplug it and check each bulb to see if it is loose in the socket. Do this by gently pressing each bulb into its socket. Even though lights are often designed to work if a single bulb goes out, they won't work if a bulb is unplugged. Once you have tightened the bulbs, plug in the string back in. Re-fuse - If the string still doesn't work, unplug the light string and check the fuse. Most strings have a fuse built in to the plug. Open remove the fuse and check that it isn't burned out. If it is, replace it. Most light strings are sold have extra fuses taped to the string somewhere in a very small plastic bag. Replace - If you have success with the above techniques but find your short on parts, relegate one of the light strings to salvage status and use those bulbs and fuses to get the rest of your light strings in working order. Continue reading Five fast, free and easy fixes for holiday lights Five fast, free and easy fixes for holiday lights originally appeared on WalletPop Blog on Sat, 29 Nov 2008 08:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Budgets , Shopping , Recession , Black Friday Rev. Billy and the Church of Stop Shopping declared victory over greedy consumerism this Black Friday. For years this self-styled street preacher has been trying to get would-be shoppers to celebrate "Buy Nothing Day" the day after Thanksgiving instead of marching to the malls. This year, he says, the idea seems to be catching on. Rev. Billy reported to a crowed gathered in Manhattan's Union Square that he turned up at Macy's flagship store on 34th Street early this morning and found far fewer eager shoppers than in years past. Every year he and the Stop Shopping Choir sing at Americans to "Start to Stop Shopping ." That's an acknowledgment that we all shop too much and face a perpetual battle against greed and materialism. Rev. Billy dresses like a preacher and treats shopping as just one more sin that is tempting but to be avoided. Rev. Billy is no fool and knows it's the recession and not his ragtag choir that is persuading us to stop shopping. But it is the end of an era--an era of being told shopping is patriotic, an era of false prosperity and an era of ignoring overwhelming personal and government debt. All to buy things we want, but don't really need.Continue reading Black Friday: A call to 'Stop Shopping' heeded this year Black Friday: A call to 'Stop Shopping' heeded this year originally appeared on WalletPop Blog on Fri, 28 Nov 2008 19:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

Filed under: Shopping , Simplification It's 3 p.m. here in Clatsop County, Oregon, where I'm staying with my parents for the holiday week. My two older boys are out fishing, and I'm knitting while the beans soak for the turkey chili that will be our dinner. I'm checking in with my friends on email and Twitter: most of us are participating in Buy Nothing Day , and I have to admit I'm a bit astounded that many acquaintances are piping in with comments such as, "isn't that cutting off your nose to spite your face?" and "sacrilege!" Although the credit crunch has hit, although millions are losing their homes because they bought more (of everything, more home, more furniture, more stuff, more entertainment) than they could afford, we can't let go of the consumer culture that celebrates buying things. We celebrate it so passionately that we excoriate those who don't participate; we consider it part of romance ; and, horribly, we actually kill people in the process . Why is shopping worth so much to us? If we don't need it to begin with, why do we need it at the special doorbuster price? Last night we watched Silent Night , a movie about some American and German soldiers at Christmas 1944 who become lost in the woods and end up at a woman's cabin. The woman demands that they all make a truce for the night, and they pool their food for dinner. One of the most touching moments is when the American private withdraws a small, paper-wrapped package he's been hoarding and gives it, his gift, to his hostess. French soap. The look of gratitude and amazement on her face is beyond anything I've ever seen in my living room on Christmas Day. Less is more.Continue reading Celebrating Buy Nothing Day surprisingly easy! Celebrating Buy Nothing Day surprisingly easy! originally appeared on WalletPop Blog on Fri, 28 Nov 2008 18:01:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Extracurriculars , Tax Madeleine and T. Boone Pickens, the billionaire couple who swooped in to New Orleans with a rented jet and saved hundreds of dogs and cats after Hurricane Katrina, announced this week they plan on saving 35,000 wild horses from potential slaughter by creating a new home for them. The horses -- representing about half the current population of the west's wild horses -- are in danger because the Bureau of Land Management, which manages (or mismanages, depending on who tells the story ) wanted to eliminate them. The BLM manages 33,100 horses in 199 herds in 10 states. The BLM also wants to cut the wild herd to 27,000 -- that's down about 18% from its current level and about 1% of its population of about 2 million in the 19th Century. Plus, they have another 30,000 in custody -- up from 9,800 in 2001. Critics say there's no reason for the reduction and no proof the horses are hurting the land. Continue reading Animals & Money: How much to save our wild horses? Animals & Money: How much to save our wild horses? originally appeared on WalletPop Blog on Fri, 28 Nov 2008 17:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

Filed under: Transportation The past year has been unkind to Harley-Davidson , as the credit crunch, over-production and a drop in used bike value have conspired to depress sales and earnings. At the same time, $4.00 gas has brought a 65.7% jump in the sale of motor scooters. Image also plays a role in the relative fortunes. HD has had great success cultivating the brand as representative of rebellion and adventure, rather than efficient transportation. For many, buying a Harley was only a minor expense compared to the clothing, accessories, and customization they bought to identify themselves as one of the tribe. Also, for many years, Harley-Davidson bikes were in such demand that riders could buy a new model and sell it a couple of years later for as much or more than they paid for it. Do you hear echoes of the housing crisis? Yes, as inventories finally caught up with demand, some less-that-stellar borrowers found themselves upside down on their loans, with predictable results. In the third quarter of 2008, Harley-Davidson's revenue dropped 11.1% vs. the previous year, and the number of bikes sold was down 13.7%. Continue reading What's out: Harley-Davidson motorcycles. What's in: Scooters. What's out: Harley-Davidson motorcycles. What's in: Scooters. originally appeared on WalletPop Blog on Fri, 28 Nov 2008 16:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

Filed under: Banks , Bargains , College , Kids and Money , Saving , School , Black Friday High school students are always looking for college scholarships to apply for, but a $1,000 scholarship sponsored by the U.S. Department of the Treasury and the Charles Schwab Foundation looks like it should be required math for anyone wondering how the economy works. It's kind of like the TV show "Are You Smarter Than a Fifth-grader?" but with more of a scholarly aspect to it. Students have to be a lot smarter for the fall National Financial Literacy Challenge ; they have to get a perfect score in order to win a $1,000 scholarship. Up to 100 students can win. Here's a sample question : If you deposit $1,000 in a savings account with a fixed annual interest rate of 5%, how much will you have in your account after two years if you make no additional deposits or withdrawals? A. Exactly $100; B. Exactly $1,100; C. Les than $1,100; D. More than $1,100. The other sample questions have to deal with net worth, diversified investments, fixed-rate mortgages vs. variable-rate mortgages, and a question about how to get a large mutual fund balance in 20 years, a question I suspect the Schwab co-sponsors had a lot to do with being asked. Still, some unique questions to ask I high school kid. I guarantee you I didn't know about variable-rate mortgages when I was 17; I barely understand them now that I own a house. The deadline for taking the 35-question online test is Dec. 12. Teachers can sign up their students at the U.S. Treasury's Web site. Aaron Crowe is an unemployed journalist in the San Francisco Bay Area. Read about his job search at www.talesofanunemployeddad.blogspot.com Hey kids: Get $1,000 for being financially literate originally appeared on WalletPop Blog on Fri, 28 Nov 2008 13:00:00 EST. Please see our terms for use of feeds . Read | Read | Read | Permalink | Email this | Comments