Okay, maybe it's the cold and the switch off of daylight savings time, maybe it's the "pre-birthday funk" I always get, maybe my brain is in some form of shock from my consumption of approximately 4.75 pies since Thanksgiving Day - whatever the case, Dear old Debt Daddy just can't wrap his brain around a well rounded, coherent blog entry at this time. My thoughts are like so many post holiday leftovers...mystery blocks of aluminum foil scattered about in the refrigerator of my mind. So, in lieu of a proper post, I offer you my Leftover Extravaganza.
Leftover #1 - Go Forth and Prosper
While Citigroup and Countrywide are floundering and their stock has been plummeting (pardon me while I step away from the keyboard to do a sadistic Happy Dance................okay, I'm back now), I got the following from Prosper.com the other day:
YOU COULDN'T HAVE DONE IT WITHOUT YOU
Prosper is pleased to announce that you have helped us reach $100MM in loans! Your involvement as a lender in the Prosper community has enabled people to start businesses, eliminate debt, improve homes, and fund educations. Thank you for helping us create opportunity for fellow Americans through the Prosper marketplace.
It works. And it works without major financial institutions, bottom feeding lobbyists, fat cat CEO's with golden parachutes - who needs all that anymore? People lending money to people - it doesn't get much better than that. My birthday is December 4th. You wanna get Debt Daddy the gift that keeps on giving? Click the link on the left for Prosper.com and fund a loan. Or borrow some funds to pay off the credit card vampires. Either way, we help each other and we help ourselves...and that gift is just what I always wanted.
Leftover#2 - I'm not buying anything from China anymore.
What the heck happened??????? When I was a kid, at least half the crap I had was "Made in China" and yet, it never killed me or put me into a coma. Now, after 40 some odd years of technological advances, they can't seem to make a toy that doesn't assault our kids. Well, this year I've decided to not reward bad behaviour. When China can figure out how to make a toy that's not quite so...hmmmm...what's the word.....HOMICIDAL, maybe I'll reconsider. For the time being however, I'm not even trusting their won tons.
Leftover #3 - Ho! Ho! Hey!!
This is ludicrous; I read a story last week that said certain department stores are asking their Santa's to say "Ha, Ha, Ha!" instead of the traditional "Ho, Ho, Ho!". The reason? They thought some of the mothers might misinterpret the meaning and take offense. I'm not kidding. The problem as I see it? Well, I (like a lot of Americans) am a little paranoid and more than a bit self conscious. You know what I'm gonna think if I walk through Macy's and Santa Claus looks at me and says "Ha, Ha, Ha"? That's right. Santa Claus is laughing...at me. "Did you hear that? I walk by and he says "HA, HA, HA" right in my face! That wasn't a warm, jolly "HO, HO, HO" - oh nooooo, that was a derisive, mocking "HA, HA, HA"! No, no, he's not gonna get away with that. Hey! Fat boy! What's so friggin' funny? (Fisticuffs ensue) Not so damn funny now, am I, ya friggin' Rent-A-Santa!! Debt Daddy winds up on the six o'clock news for assaulting Saint Nick. Nice.
Ladies, Santa Claus says "Ho, Ho, Ho" because that's what he's always said. Unless you show up to see Santa with your kid and the four guys that think they might be the father, he's not talking to you.
Leftover #4 - Sewing the Beads of Love
Speaking of kids and fathers, I came across this guy a while back and wanted to pass his name along to you. Jimmy Moore has been blogging for quite some time - one of his most read blogs is "Livin' La Vida Lo-Carb" (which is just the kind of kitchy title that makes Debt Daddy giggle). Anyway, he and his wife have been trying to have children for quite some time, but have had no luck, and are now turning to IVF (IVF = invitro fertilization, for anyone who doesn't know what the heck I'm babbling about). IVF can get pretty expensive, but have no fear! Believe it or not, Capital One now offers an "infertility loan" to finance the long (hopefully successful) road of making a baby with doctors present. So, whether or not their attempt to procreate is successful, they will still be paying back this loan with interest. Fortunately, Jimmy's wife has a sideline business that they're hoping will help to supplement some of the expenses and get this loan paid down. If you're still looking for Holiday gifts for people on your list, you might want to check out this link - http://livinlavidalocarb.blogspot.com/2007/11/join-in-on-jimmy-christines-beads-of.html - Jimmy's wife Christine makes some very pretty beaded jewelry, and purchasing some of her handiwork would not only make a lovely gift to whomever you're giving it to, but to the people you bought it from as well.
Well, that's about it. Thanks for sharing my leftovers with me - the fridge is looking pretty bare now. All that's left, hidden way back on the top shelf behind the eggs, is the very last Thanksgiving day pie.
One last pie.
It's a pumpkin pie.
And I'm not sharing it. :)
Wednesday, November 28, 2007
Thursday, November 8, 2007
Debt Daddy - Pimp My Interest Rate
Hairshirts Work.
After calling to pester Bank of America two more times after my lovely conversation with Angela Angela (personal friend of Lisa Lisa and the Cult Jam), I finally made it to someone who actually tried to help me (Insert audible gasp here).
Early on in our conversation, I was not expecting much. She was, after all, telling me what all the other "B of A" people I had spoken to were telling me - that my credit report and other various unnamed factors dictate what interest rates I'm allowed to have, and the one I had (17.99%) was the best I could get at this time. However, if I continued to make on time payments for the next 6 months, I might be able to get a better rate.
That's where I finally stopped being nice and got a little testy (balancing on that fine line where you go from asking someone to do something to telling someone to do something and hoping they don't call your bluff). I explained that I had been making on time payments for the last 12 years that I've had this card, so I had already done what they were asking me to do 24 times over! That alone deserved a better rate in my opinion.
Well, she appreciated that, but said she would have to talk to her supervisor and have him call me back. Yes, I flashed back to the mysterious Mr. Misterski too (who has not called me back as of yet - insert look of utter shock here). I said that was fine. I didn't even ask her for her name - I was tired and feeling a bit dejected over the whole process. What did it matter anyway? She'd probably lie about her name like Angela Angela (who lives in New York, New York?), and I truly didn't believe that anyone was going to call me back with anything good to say.
Ah, me of little faith. She called me back herself after only about fifteen minutes to tell me that they were going to reduce my rate to 13.99%. That may not sound like much to some of you, but about 50% of my credit card debt is with B of A right now, so four percentage points lower is just fine with me.
So, after calling this company three times, talking to a total of six people and spending a little under an hour of my time, I saved several thousands of dollars in interest payments. I'd say that was time well spent.
In the midst of these B of A dealings, I also called Citibank, who was charging me 18.99% interest. Suprisingly, I only had to talk to two people there before they bumped my rate down to 10.99%. Oh, and something to keep in mind - most of the rates on credit cards, variable APR mortgages and car loans are tied to the prime rate, which has come down at least 1/2 a point in recent weeks, so in some cases, your rate comes down even if you don't ask for it.
I plugged all these rate reductions (those I negotiated and those from the prime rate reduction) into my Dave Ramsey debt software and ran the debt snowball program again. All told, over the life of my debt, I will have saved $58,129.57 in interest.
And that sure makes a pretty looking diamond on my sword. :)
After calling to pester Bank of America two more times after my lovely conversation with Angela Angela (personal friend of Lisa Lisa and the Cult Jam), I finally made it to someone who actually tried to help me (Insert audible gasp here).
Early on in our conversation, I was not expecting much. She was, after all, telling me what all the other "B of A" people I had spoken to were telling me - that my credit report and other various unnamed factors dictate what interest rates I'm allowed to have, and the one I had (17.99%) was the best I could get at this time. However, if I continued to make on time payments for the next 6 months, I might be able to get a better rate.
That's where I finally stopped being nice and got a little testy (balancing on that fine line where you go from asking someone to do something to telling someone to do something and hoping they don't call your bluff). I explained that I had been making on time payments for the last 12 years that I've had this card, so I had already done what they were asking me to do 24 times over! That alone deserved a better rate in my opinion.
Well, she appreciated that, but said she would have to talk to her supervisor and have him call me back. Yes, I flashed back to the mysterious Mr. Misterski too (who has not called me back as of yet - insert look of utter shock here). I said that was fine. I didn't even ask her for her name - I was tired and feeling a bit dejected over the whole process. What did it matter anyway? She'd probably lie about her name like Angela Angela (who lives in New York, New York?), and I truly didn't believe that anyone was going to call me back with anything good to say.
Ah, me of little faith. She called me back herself after only about fifteen minutes to tell me that they were going to reduce my rate to 13.99%. That may not sound like much to some of you, but about 50% of my credit card debt is with B of A right now, so four percentage points lower is just fine with me.
So, after calling this company three times, talking to a total of six people and spending a little under an hour of my time, I saved several thousands of dollars in interest payments. I'd say that was time well spent.
In the midst of these B of A dealings, I also called Citibank, who was charging me 18.99% interest. Suprisingly, I only had to talk to two people there before they bumped my rate down to 10.99%. Oh, and something to keep in mind - most of the rates on credit cards, variable APR mortgages and car loans are tied to the prime rate, which has come down at least 1/2 a point in recent weeks, so in some cases, your rate comes down even if you don't ask for it.
I plugged all these rate reductions (those I negotiated and those from the prime rate reduction) into my Dave Ramsey debt software and ran the debt snowball program again. All told, over the life of my debt, I will have saved $58,129.57 in interest.
And that sure makes a pretty looking diamond on my sword. :)
Sunday, November 4, 2007
Bank of America - Instant Replay
Last night, I was watching a financial program where they were talking about calling your credit cards and asking for a reduced interest rate. I've tried this many times in the past, and have usually gotten nowhere. But they had four women try, and three out of four of them actually did get their interest rate lowered, so it got my hopes up. Maybe the bank rules had changed a bit. Maybe they were easing up in light of the "hard times" that banks are having right now (brief moment of silence and reflection as I shed a single tear for the plight of the banks...right).
Anyway, I decided to call them. The following was my first call, to Bank of America, which I wrote down immediately after hanging up while it was fresh in my memory. Productive? We'll see. Humorous? I thought so - you be the judge.
My name is Angela - how may I give you excellent service today?
I'd like to get a lower interest rate and I'd like to know what I need to do to make that happen.
Well Sir, I'm looking at your account and this is the best rate we have for your account at this time.
You don't have a lower rate available for my account?
No Sir, this is the best rate for your account at this time.
I assume that other people have lower rates; what do I need to do to get a rate like theirs?
This is the best rate we have for your account at this time.
Yes, for my account - I heard you the first three times you said that. But when you say, "for my account" it leads me to believe that other cardholders may have lower interest rates, so my question to you is, what do I have to do to get their rate?
Just keep paying your bill on time, Sir.
All I have to do is pay my bill on time and I'll get a lower rate?
I can't guarantee that, Sir.
You said this was the best rate for my account; on what criteria do you base that decision?
We don't have access to that information, Sir.
Please transfer me to the department that does have that information.
We're unable to share that information with you, Sir.
Your company won't tell me how they came to the decision regarding my interest rate?
No, Sir.
So there's nothing that anyone can do?
No, Sir.
What if I just paid off this card and cancelled the account; would that be cool with you?
That would be fine, Sir.
Really?
Yes, Sir.
Let me talk to your supervisor, please.
If I can get your name and number, I'll have my supervisor call you back within 24 hours.
Okay, but first I'll need your name - who am I speaking with?
Angela.
Angela, what is your last name?
Angela.
Your name is Angela Angela?
Yes.
What call center are you located in, Angela?
Hunt Valley.
Hunt Valley where?
Hunt Valley, Maryland.
Thank you for not saying Hunt Valley, Hunt Valley Angela, because that just would've been silly. What is your supervisors name?
His....um his name.....it's.....Misss.....his name....Misterski. Mr. Misterski.
And he'll call me back within 24 hours?
Yes, Sir.
Do you think "Mr. Misterski" is gonna call me back? Yeah, I'm not holding my breath either. That's okay - I plan on calling them back on Tuesday. And two days after that. And two days after that, and on and on and on until they get so sick of hearing from me that they do reduce my rate. It's a little maneuver I like to call, "The Human Hairshirt" (hairshirt, from Wiki - a garment made of coarse cloth or animal hair. In more modern religious circles, the word has come to simply mean an object that can be worn to induce some degree of discomfort or pain.) While I'm not trying to cause anyone pain, I've found that some minor discomfort can go a long way toward getting what you want. And, for all the discomfort they've caused all of us over the years, I consider this simply returning the favor. Reciprocity. I love it.
I'll keep you posted.
Anyway, I decided to call them. The following was my first call, to Bank of America, which I wrote down immediately after hanging up while it was fresh in my memory. Productive? We'll see. Humorous? I thought so - you be the judge.
My name is Angela - how may I give you excellent service today?
I'd like to get a lower interest rate and I'd like to know what I need to do to make that happen.
Well Sir, I'm looking at your account and this is the best rate we have for your account at this time.
You don't have a lower rate available for my account?
No Sir, this is the best rate for your account at this time.
I assume that other people have lower rates; what do I need to do to get a rate like theirs?
This is the best rate we have for your account at this time.
Yes, for my account - I heard you the first three times you said that. But when you say, "for my account" it leads me to believe that other cardholders may have lower interest rates, so my question to you is, what do I have to do to get their rate?
Just keep paying your bill on time, Sir.
All I have to do is pay my bill on time and I'll get a lower rate?
I can't guarantee that, Sir.
You said this was the best rate for my account; on what criteria do you base that decision?
We don't have access to that information, Sir.
Please transfer me to the department that does have that information.
We're unable to share that information with you, Sir.
Your company won't tell me how they came to the decision regarding my interest rate?
No, Sir.
So there's nothing that anyone can do?
No, Sir.
What if I just paid off this card and cancelled the account; would that be cool with you?
That would be fine, Sir.
Really?
Yes, Sir.
Let me talk to your supervisor, please.
If I can get your name and number, I'll have my supervisor call you back within 24 hours.
Okay, but first I'll need your name - who am I speaking with?
Angela.
Angela, what is your last name?
Angela.
Your name is Angela Angela?
Yes.
What call center are you located in, Angela?
Hunt Valley.
Hunt Valley where?
Hunt Valley, Maryland.
Thank you for not saying Hunt Valley, Hunt Valley Angela, because that just would've been silly. What is your supervisors name?
His....um his name.....it's.....Misss.....his name....Misterski. Mr. Misterski.
And he'll call me back within 24 hours?
Yes, Sir.
(I gave her my name and number here)
Thank you.Do you think "Mr. Misterski" is gonna call me back? Yeah, I'm not holding my breath either. That's okay - I plan on calling them back on Tuesday. And two days after that. And two days after that, and on and on and on until they get so sick of hearing from me that they do reduce my rate. It's a little maneuver I like to call, "The Human Hairshirt" (hairshirt, from Wiki - a garment made of coarse cloth or animal hair. In more modern religious circles, the word has come to simply mean an object that can be worn to induce some degree of discomfort or pain.) While I'm not trying to cause anyone pain, I've found that some minor discomfort can go a long way toward getting what you want. And, for all the discomfort they've caused all of us over the years, I consider this simply returning the favor. Reciprocity. I love it.
I'll keep you posted.
Friday, November 2, 2007
Debt Daddy's Better Half
So I know you've all been wondering - Is Debt Daddy taken? Could such a prime example of fiscal mismanagement and poor grooming still be on the market? Still looking for his special someone?
Well, sorry to disappoint, but yes Virginia - there is a Debt Mommy, and she's quite the special bit of something, she is. Stunningly beautiful and amazingly intelligent, this wonderful woman gets all my jokes, still loves me despite my myriad foibles, and manages to keep all the Debt Family trains running on time. And while fabulous wife, excellent mother and helluva homemaker were all quite worthy accomplishments, she has just done something that tops them all, putting the veritable cherry on the Debt Mommy Sundae -
She lost her job!
Isn't that Great!!
Uh-oh, Debt Daddy's gone and lost his mind (which we should've realized was already starting to happen when he claimed that the cancelling of HBO's acclaimed hit, "John From Cincinnati" was part of a vast right wing conspiracy). He's finally snapped - doesn't know up from down, good thing from bad thing, great from awful...the poor, pathetic creature.
Yes, I know - I sound crazy, but hear me out (and don't get me started on "John from Cincinnati"). My wife has worked for (names changed, identities protected, yada, yada - you know the drill) Spastic Colon, Inc. for many years and, despite her stellar performance, has never been fully appreciated for the superstar that she is. When Spastic Colon, Inc. announced that they would be moving Debt Mommy's job to outer Fubarstan, Debt Mommy hit the ground running and set a new standard for the term "proactive".
She searched for jobs online at all hours. She interviewed like a mad woman. Like a non-union NYC actor with no survival job and a loft rental to pay for, she did not stop "auditioning" until she got "cast in a new show". And, before you could say "beans and rice, rice and beans", my beautiful, dutiful bride had not only found a new job, but one at more money, with better benefits, and with a company that actually seems to realize and acknowledge what a talent she truly is.
Debt Mommy will be soon be working for Totally Awesome! Enterprises and, while I can't go into specific details, let's just say that the financial benefits, both from the old company and the new, are going to accelerate our debt payoff in a way which simply would not have been possible if things had remained as they were.
Early on in this blog, I had mentioned my search for the metaphorical "debt snowplow" to dig us out of the financial embankment in which we were buried. Who could have known that it would be my wife, Debt Mommy herself, bringing it to me, secured to the top of her minivan, wrapped in a huge red bow (and just in time for my birthday!).
So now, if you will, please join me in a round of applause for the gal who's my pal, the girl who rocks my world, the mom with aplomb, my wife for life - you know her, you love her - and doesn't she just look fabulous on that white horse with the cavalry riding behind her? - Give it up for the one, the only - - Debt Mommy!!
You rock, babe. :)
Well, sorry to disappoint, but yes Virginia - there is a Debt Mommy, and she's quite the special bit of something, she is. Stunningly beautiful and amazingly intelligent, this wonderful woman gets all my jokes, still loves me despite my myriad foibles, and manages to keep all the Debt Family trains running on time. And while fabulous wife, excellent mother and helluva homemaker were all quite worthy accomplishments, she has just done something that tops them all, putting the veritable cherry on the Debt Mommy Sundae -
She lost her job!
Isn't that Great!!
Uh-oh, Debt Daddy's gone and lost his mind (which we should've realized was already starting to happen when he claimed that the cancelling of HBO's acclaimed hit, "John From Cincinnati" was part of a vast right wing conspiracy). He's finally snapped - doesn't know up from down, good thing from bad thing, great from awful...the poor, pathetic creature.
Yes, I know - I sound crazy, but hear me out (and don't get me started on "John from Cincinnati"). My wife has worked for (names changed, identities protected, yada, yada - you know the drill) Spastic Colon, Inc. for many years and, despite her stellar performance, has never been fully appreciated for the superstar that she is. When Spastic Colon, Inc. announced that they would be moving Debt Mommy's job to outer Fubarstan, Debt Mommy hit the ground running and set a new standard for the term "proactive".
She searched for jobs online at all hours. She interviewed like a mad woman. Like a non-union NYC actor with no survival job and a loft rental to pay for, she did not stop "auditioning" until she got "cast in a new show". And, before you could say "beans and rice, rice and beans", my beautiful, dutiful bride had not only found a new job, but one at more money, with better benefits, and with a company that actually seems to realize and acknowledge what a talent she truly is.
Debt Mommy will be soon be working for Totally Awesome! Enterprises and, while I can't go into specific details, let's just say that the financial benefits, both from the old company and the new, are going to accelerate our debt payoff in a way which simply would not have been possible if things had remained as they were.
Early on in this blog, I had mentioned my search for the metaphorical "debt snowplow" to dig us out of the financial embankment in which we were buried. Who could have known that it would be my wife, Debt Mommy herself, bringing it to me, secured to the top of her minivan, wrapped in a huge red bow (and just in time for my birthday!).
So now, if you will, please join me in a round of applause for the gal who's my pal, the girl who rocks my world, the mom with aplomb, my wife for life - you know her, you love her - and doesn't she just look fabulous on that white horse with the cavalry riding behind her? - Give it up for the one, the only - - Debt Mommy!!
You rock, babe. :)
Saturday, October 20, 2007
Robin Hood Was Right
First off, I want to thank all of you that have clicked through and joined Prosper, especially those of you who went so far as to fund a loan - felt pretty good getting that instant $25, didn't it? :)
Remember, once you're a member, if you get others to join through the referral program, you'll get another $25 for each one of them that joins and funds a loan, or joins for the purposes of borrowing. And, as if I need to remind you, every dollar that is loaned from one person to another is one more dollar that THE BANKS don't get any part of (I just felt a tingle in my nether regions). Remember that banker that gave you a really hard time and just wouldn't listen to reason? Well, using Prosper is the financial equivalent of replacing his toilet paper with 80 grit sandpaper. Yeah....Ouch. ;)
That to me is the true win/win scenario. It's always great if I can save some money, or make some money - but add to that the thought that I might be able to sucker punch a financial institution in the process - well hell, that just makes Debt Daddy giddy as a schoolgirl (avert your eyes from the visual that may have stirred up).
I guess that's why Robin Hood has always been one of my heroes. He saw a wrong and he righted it. He saw inequity and did something about it, usually with a broad smile on his face. Because he knew - taking ill-gotten gain from one whom neither deserves nor requires it, and returning said money to those from whom it was originally taken, is not theft - it is justice.
It's not about stealing, it's about turning the tide. Nature knows all about this - there's a part of North Carolina called the Outer Banks. It's a truly beautiful stretch of barrier islands, best known for Kitty Hawk, where the Wright Brothers had their maiden flight. More important than its historical significance however, is the inlet system of the islands themselves. Every year, the tide carries sand from the ocean side of the islands through the inlets and deposits it on the sound side. In time, the currents take that sand back from the sound side and replace it on the ocean side, so the islands are ever shifting, but always there.
Then progress came along and mucked everything up. A large bridge was built many years ago across one of the major inlets, stifling the ability of nature to do its job. Does that mean that the sand stops moving? No. Now, instead of moving the sand to the sound side, a good portion of it simply gets washed out to sea, causing beach erosion and, in worst case scenarios, causing beach homes to be condemned because there's simply not enough land left to safely support their homes.
This is what's happening with money as well. When interest rates on credit card debt are allowed to skyrocket, it erodes your funds. When wealthy CEO's hoard millions, often billions of dollars in offshore accounts, the money doesn't flow and the system doesn't function as it should. When the government denies worthwhile programs that would help the poor and middle class while at the same time rewarding the wealthy, they have blocked the cash flow yet again. And when all of these financial factors are combined, eventually there is not enough left to support you and your financial life is condemned - condemned to a seemingly endless race to get back what you lost, to claw your way out of debt - to do whatever it takes to somehow turn the tide and regain that which the sea has taken from you.
That's what Robin Hood was about - restoring the balance. The king was overtaxing those who could not afford to be taxed so heavily, and Robin Hood took it back, returning the cash to those that needed it most. Was he a thief? Depends on how you look at it - as far as the British were concerned, George Washington was a terrorist. The FBI had this to say about Martin Luther King, directly following his "I have a dream" speech; "We must mark him now . . . as the most dangerous Negro of the future in this Nation from the standpoint of Communism, the Negro and national security." It's all about perspective.
From my perspective, we need more Robin Hoods. And each of us, in our own way, can become Robin Hoods. PLEASE NOTE: DEBT DADDY IS NOT ASKING YOU TO STEAL FROM ANYONE AS DEFINED BY THE LAWS OF THE LAND. DEBT DADDY DOES NOT CONDONE, NOR IN ANY WAY ENCOURAGE FELONY BEHAVIOR! We clear? (That said, if you wanted to cover Rush Limbaugh's front lawn in pink paint, forcing him to pay a struggling landscaper to put down new sod, well then - that's your call. I'm pretty sure that's only a misdemeanor, but check with your local authority.)
What I am suggesting is that we play their game. After all, the banks and the government don't break into your house and steal your prized possessions, do they? No; instead they legally jack up your interest rates and your taxes so that you are forced to sell those prized possessions on Ebay to pay the bills. We need some perfectly legal Robin Hooding ideas, and here are a few:
First of all, take a full weekend and study your income tax code and guidelines. Are you absolutely making the most of your deductions? Time to think outside that cursed box - is there a hobby that you engage in that might, with a little tweaking, become a business? If so, the money you spend on that hobby is tax deductible. When you tithe to your church or other place of worship, do you do so by check? You should - that check is a receipt for your charitable contribution - again, tax deductible. Could your own home possibly be considered a place of worship? I know of Orthodox Jews in my area that are using that strategy. Take a fine tooth comb to the tax books, and see what you might be able to use for your situation.
Speaking of taxes, have you appealed your property taxes? I had thought about this, but was afraid it might backfire and my taxes might go up. Turns out, if you appeal, they can only lower your tax or it remains the same - they cannot raise it (this is in my area - again, check your local authority for rules and regs).
Have you looked at Prosper.com? Many of the borrowers on Prosper are there for the purposes of debt reduction. A loan from Prosper is a fixed rate term loan, quite often at better interest rates than you're getting from Visa and the like. A whole lot of people are benefiting from Prosper, so much so that it was named as one of TIME magazines top 50 websites. Again, if you're interested or curious, click the blue link on the left of this page.
These are just a few thoughts - I hope that you will post your own ideas in the comments section. I'm open to any idea, however "out there" it might seem. Because we've gotta turn this tide, folks. We've gotta get back some of what they've taken from us. And we've gotta do it Now.
Rock on, Robin Hoods.
Remember, once you're a member, if you get others to join through the referral program, you'll get another $25 for each one of them that joins and funds a loan, or joins for the purposes of borrowing. And, as if I need to remind you, every dollar that is loaned from one person to another is one more dollar that THE BANKS don't get any part of (I just felt a tingle in my nether regions). Remember that banker that gave you a really hard time and just wouldn't listen to reason? Well, using Prosper is the financial equivalent of replacing his toilet paper with 80 grit sandpaper. Yeah....Ouch. ;)
That to me is the true win/win scenario. It's always great if I can save some money, or make some money - but add to that the thought that I might be able to sucker punch a financial institution in the process - well hell, that just makes Debt Daddy giddy as a schoolgirl (avert your eyes from the visual that may have stirred up).
I guess that's why Robin Hood has always been one of my heroes. He saw a wrong and he righted it. He saw inequity and did something about it, usually with a broad smile on his face. Because he knew - taking ill-gotten gain from one whom neither deserves nor requires it, and returning said money to those from whom it was originally taken, is not theft - it is justice.
It's not about stealing, it's about turning the tide. Nature knows all about this - there's a part of North Carolina called the Outer Banks. It's a truly beautiful stretch of barrier islands, best known for Kitty Hawk, where the Wright Brothers had their maiden flight. More important than its historical significance however, is the inlet system of the islands themselves. Every year, the tide carries sand from the ocean side of the islands through the inlets and deposits it on the sound side. In time, the currents take that sand back from the sound side and replace it on the ocean side, so the islands are ever shifting, but always there.
Then progress came along and mucked everything up. A large bridge was built many years ago across one of the major inlets, stifling the ability of nature to do its job. Does that mean that the sand stops moving? No. Now, instead of moving the sand to the sound side, a good portion of it simply gets washed out to sea, causing beach erosion and, in worst case scenarios, causing beach homes to be condemned because there's simply not enough land left to safely support their homes.
This is what's happening with money as well. When interest rates on credit card debt are allowed to skyrocket, it erodes your funds. When wealthy CEO's hoard millions, often billions of dollars in offshore accounts, the money doesn't flow and the system doesn't function as it should. When the government denies worthwhile programs that would help the poor and middle class while at the same time rewarding the wealthy, they have blocked the cash flow yet again. And when all of these financial factors are combined, eventually there is not enough left to support you and your financial life is condemned - condemned to a seemingly endless race to get back what you lost, to claw your way out of debt - to do whatever it takes to somehow turn the tide and regain that which the sea has taken from you.
That's what Robin Hood was about - restoring the balance. The king was overtaxing those who could not afford to be taxed so heavily, and Robin Hood took it back, returning the cash to those that needed it most. Was he a thief? Depends on how you look at it - as far as the British were concerned, George Washington was a terrorist. The FBI had this to say about Martin Luther King, directly following his "I have a dream" speech; "We must mark him now . . . as the most dangerous Negro of the future in this Nation from the standpoint of Communism, the Negro and national security." It's all about perspective.
From my perspective, we need more Robin Hoods. And each of us, in our own way, can become Robin Hoods. PLEASE NOTE: DEBT DADDY IS NOT ASKING YOU TO STEAL FROM ANYONE AS DEFINED BY THE LAWS OF THE LAND. DEBT DADDY DOES NOT CONDONE, NOR IN ANY WAY ENCOURAGE FELONY BEHAVIOR! We clear? (That said, if you wanted to cover Rush Limbaugh's front lawn in pink paint, forcing him to pay a struggling landscaper to put down new sod, well then - that's your call. I'm pretty sure that's only a misdemeanor, but check with your local authority.)
What I am suggesting is that we play their game. After all, the banks and the government don't break into your house and steal your prized possessions, do they? No; instead they legally jack up your interest rates and your taxes so that you are forced to sell those prized possessions on Ebay to pay the bills. We need some perfectly legal Robin Hooding ideas, and here are a few:
First of all, take a full weekend and study your income tax code and guidelines. Are you absolutely making the most of your deductions? Time to think outside that cursed box - is there a hobby that you engage in that might, with a little tweaking, become a business? If so, the money you spend on that hobby is tax deductible. When you tithe to your church or other place of worship, do you do so by check? You should - that check is a receipt for your charitable contribution - again, tax deductible. Could your own home possibly be considered a place of worship? I know of Orthodox Jews in my area that are using that strategy. Take a fine tooth comb to the tax books, and see what you might be able to use for your situation.
Speaking of taxes, have you appealed your property taxes? I had thought about this, but was afraid it might backfire and my taxes might go up. Turns out, if you appeal, they can only lower your tax or it remains the same - they cannot raise it (this is in my area - again, check your local authority for rules and regs).
Have you looked at Prosper.com? Many of the borrowers on Prosper are there for the purposes of debt reduction. A loan from Prosper is a fixed rate term loan, quite often at better interest rates than you're getting from Visa and the like. A whole lot of people are benefiting from Prosper, so much so that it was named as one of TIME magazines top 50 websites. Again, if you're interested or curious, click the blue link on the left of this page.
These are just a few thoughts - I hope that you will post your own ideas in the comments section. I'm open to any idea, however "out there" it might seem. Because we've gotta turn this tide, folks. We've gotta get back some of what they've taken from us. And we've gotta do it Now.
Rock on, Robin Hoods.
Thursday, October 18, 2007
Debt Daddy - Burnin' Down the Box
Well, we have done the unthinkable...that which must never be mentioned....the beast with seven consequences....
We borrowed from our 401k account.
Okay, that's done it - the remainder of Dave Ramsey's hair just fell out in frustration over my blatant disregard for his rules. I know, I know - in Dave's world, borrowing from my 401k is almost as bad as sleeping with my sister, forcing her to have my baby and naming it Adolf Mussolini.
And yet, I'm just not seeing it that way.
I've had several major bills come in recently - between the life insurance, property tax installment and the dreaded, completely overpriced school tax, I was looking at payments totalling close to $12,000 - that's not even including all the regular monthly bills on top of that. Could I have worked day and night to make that money? Yes. Would I have made my nut? Hmmm....you might, rabbit, you might. Was borrowing from the 401k to take care of those payments the best choice? Maybe, maybe not - I am, after all, robbing my own retirement fund, taking from tomorrow to pay for today (and yesterday, and the day before, etc.). But (and here's the question that decided it for me), how much will you enjoy your tomorrows if you work so hard that you die today?
Today is all we have. Tomorrow is not ever guaranteed and, while we're on the subject, neither are the funds in a 401k or pension or any other retirement account - the value goes up, goes down, and sometimes disappears completely. However, the interest that your credit card company charges is always guaranteed - Visa isn't going to suddenly drop your interest rate from 22% to 3.9% because of volatility on the DOW exchange. So, while we have made good returns on the majority of our investments, and we'll miss those returns on a portion of funds for the time being, the fact remains that I'll have enough left over from this loan to pay off a few thousand dollars worth of credit card debt that's currently charging 18%. Meanwhile, I'm paying back that 401k money at an interest rate of 8.75 %, and that interest is being paid - to me. If I don't pay the loan off sooner, I will have, by the final payment, paid myself $3,783.20 in interest. Frankly, I'd much rather that I get that interest rather than Bank of America or Chase or Citibank or....you get my point. So, sorry Dave, I've been thinking outside the box again and, in my bizarre little mind, this just makes sense.
Thinking outside the box is not always easy. There are some pretty scary nasties on the outside of that box, which is why the box was built in the first place - to give us a comfort zone where we might feel safe and warm and cozy. The problem is, we don't have very much to do with the actual building of the box. Our parents, advertising and marketing companies, the government, teachers - they built our box - their values, mores and beliefs form the walls, floor and ceiling. I have a friend who, for the purposes of this entry and to protect her anonymity, I shall refer to as "Chamomile". Chamomile's parents lived through part of the Great Depression, and this of course has greatly colored her world view, especially in the case of financial matters. So much so that she will often say, "I am a child of the Depression". Now, unless the depression was still going on during the Kennedy Administration, that just ain't true. Doesn't matter; it's in her head - it's the mantra she heard, and the mantra she recites. She didn't build that box, but she's decorated it quite tastefully in the style of the times (which would be the late 1920's).
We've all got our boxes. Believe me, Debt Daddy's box would make your head spin in it's strange amalgam of outdated and often contradictory beliefs. Over the years, I've questioned many of those beliefs and values, leaving dents and sometimes complete holes punched in the walls of my box. The last real solid wall I had was the one entitled, "Thou shalt not borrow from thine 401k - to do so means financial ruin and a daily diet of cat food in your golden years". I stared at that wall for a long time and finally noticed the fine print at the bottom - "This wall manufactured by the banks and financial institutions that use your retirement contributions for decades and who are intent on scaring the bejesus out of you so that you NEVER consider taking away this free source of revenue."
A low growl emanates from deep in Debt Daddy's throat. "Damned banks". In a fit of rage, Debt Daddy charges at that filthy, misleading wall and hurls himself into it. The aged plaster and lathe shatters as he explodes through the wall of his now ramshackle box, landing in a heap on the outside. He finds himself on a vast white sand beach, illuminated by more stars than he thought it possible for the sky to hold. Breathless, he gasps for air and staggers to his feet. The air outside feels clean and fresh, not poisonous like "THEY" said it would be, and a pleasant change from the stale, odorous atmosphere of the box. The Box. An evil gleam flashes in Debt Daddy's eyes. "What this scene needs is a fire", he thinks to himself. Quick as a flash, before he can think twice, he yanks his Zippo from his pocket, rolls the starter across his jeans and tosses the now flaming object into the middle of the box. It ignites immediately, and he sits before the building blaze, chuckling to himself about the sage platitudes that covered its walls -
"A leased vehicle is the Best way to go!"
"What will people think??"
"Ya gotta buy up all the Lucent stock you can....and hold onto it!"
"What you need is a real job in a stable company - like Enron!"
Those and countless others turn to ember and ash, as the box collapses to the ground, it's flames dancing in the night wind. And, although he's sure it's not what the builders had in mind, as he sits before his burning box, now a massive bonfire on the beach, the ashes of preconception, misconception and deception gently floating into an endless night sky full of equally endless possibilities...
He feels Safe.
And Warm.
And Cozy.
We borrowed from our 401k account.
Okay, that's done it - the remainder of Dave Ramsey's hair just fell out in frustration over my blatant disregard for his rules. I know, I know - in Dave's world, borrowing from my 401k is almost as bad as sleeping with my sister, forcing her to have my baby and naming it Adolf Mussolini.
And yet, I'm just not seeing it that way.
I've had several major bills come in recently - between the life insurance, property tax installment and the dreaded, completely overpriced school tax, I was looking at payments totalling close to $12,000 - that's not even including all the regular monthly bills on top of that. Could I have worked day and night to make that money? Yes. Would I have made my nut? Hmmm....you might, rabbit, you might. Was borrowing from the 401k to take care of those payments the best choice? Maybe, maybe not - I am, after all, robbing my own retirement fund, taking from tomorrow to pay for today (and yesterday, and the day before, etc.). But (and here's the question that decided it for me), how much will you enjoy your tomorrows if you work so hard that you die today?
Today is all we have. Tomorrow is not ever guaranteed and, while we're on the subject, neither are the funds in a 401k or pension or any other retirement account - the value goes up, goes down, and sometimes disappears completely. However, the interest that your credit card company charges is always guaranteed - Visa isn't going to suddenly drop your interest rate from 22% to 3.9% because of volatility on the DOW exchange. So, while we have made good returns on the majority of our investments, and we'll miss those returns on a portion of funds for the time being, the fact remains that I'll have enough left over from this loan to pay off a few thousand dollars worth of credit card debt that's currently charging 18%. Meanwhile, I'm paying back that 401k money at an interest rate of 8.75 %, and that interest is being paid - to me. If I don't pay the loan off sooner, I will have, by the final payment, paid myself $3,783.20 in interest. Frankly, I'd much rather that I get that interest rather than Bank of America or Chase or Citibank or....you get my point. So, sorry Dave, I've been thinking outside the box again and, in my bizarre little mind, this just makes sense.
Thinking outside the box is not always easy. There are some pretty scary nasties on the outside of that box, which is why the box was built in the first place - to give us a comfort zone where we might feel safe and warm and cozy. The problem is, we don't have very much to do with the actual building of the box. Our parents, advertising and marketing companies, the government, teachers - they built our box - their values, mores and beliefs form the walls, floor and ceiling. I have a friend who, for the purposes of this entry and to protect her anonymity, I shall refer to as "Chamomile". Chamomile's parents lived through part of the Great Depression, and this of course has greatly colored her world view, especially in the case of financial matters. So much so that she will often say, "I am a child of the Depression". Now, unless the depression was still going on during the Kennedy Administration, that just ain't true. Doesn't matter; it's in her head - it's the mantra she heard, and the mantra she recites. She didn't build that box, but she's decorated it quite tastefully in the style of the times (which would be the late 1920's).
We've all got our boxes. Believe me, Debt Daddy's box would make your head spin in it's strange amalgam of outdated and often contradictory beliefs. Over the years, I've questioned many of those beliefs and values, leaving dents and sometimes complete holes punched in the walls of my box. The last real solid wall I had was the one entitled, "Thou shalt not borrow from thine 401k - to do so means financial ruin and a daily diet of cat food in your golden years". I stared at that wall for a long time and finally noticed the fine print at the bottom - "This wall manufactured by the banks and financial institutions that use your retirement contributions for decades and who are intent on scaring the bejesus out of you so that you NEVER consider taking away this free source of revenue."
A low growl emanates from deep in Debt Daddy's throat. "Damned banks". In a fit of rage, Debt Daddy charges at that filthy, misleading wall and hurls himself into it. The aged plaster and lathe shatters as he explodes through the wall of his now ramshackle box, landing in a heap on the outside. He finds himself on a vast white sand beach, illuminated by more stars than he thought it possible for the sky to hold. Breathless, he gasps for air and staggers to his feet. The air outside feels clean and fresh, not poisonous like "THEY" said it would be, and a pleasant change from the stale, odorous atmosphere of the box. The Box. An evil gleam flashes in Debt Daddy's eyes. "What this scene needs is a fire", he thinks to himself. Quick as a flash, before he can think twice, he yanks his Zippo from his pocket, rolls the starter across his jeans and tosses the now flaming object into the middle of the box. It ignites immediately, and he sits before the building blaze, chuckling to himself about the sage platitudes that covered its walls -
"A leased vehicle is the Best way to go!"
"What will people think??"
"Ya gotta buy up all the Lucent stock you can....and hold onto it!"
"What you need is a real job in a stable company - like Enron!"
Those and countless others turn to ember and ash, as the box collapses to the ground, it's flames dancing in the night wind. And, although he's sure it's not what the builders had in mind, as he sits before his burning box, now a massive bonfire on the beach, the ashes of preconception, misconception and deception gently floating into an endless night sky full of equally endless possibilities...
He feels Safe.
And Warm.
And Cozy.
Monday, October 8, 2007
Thank You, Dr. House
And so it would seem that the final correct diagnosis of my medical mystery would come, not from the cadre of medical professionals gathered to examine me and overcharge my insurance company, but instead from Hugh Laurie and the talented script writers of the tv show, "House".
We had never seen the show before, but seeing as there was nothing else on that evening that we felt like watching, I said half-joking, "Let's see if this guy knows what's wrong with me!". Imagine my surprise when, a mere fifteen minutes into the episode, he mentioned "costochondritis". I ran to the internet on the next commercial break and, sure enough, the description of the condition matched up perfectly with my mis-named malady, Quico.
The good news is that it's a muscular condition so, as the numerous tests and scans will attest, all the major organs are pretty much off the table as potential suspects. The bad news is...well, that it's a muscular condition. Pretty much the number one treatment for costochondritis is - REST. (Debt Daddy stifles a derisive giggling fit as the irony of "rest" becoming a four letter word in his vocabulary hits home.) After the whole "deck debacle" that brought about this condition in the first place (think about that - working on their deck put me in the hospital, and then they criticize my work and refuse to pay me the balance - this is the living cliche of "adding insult to injury") I'm going to have to work harder than ever to make up for lost wages...while resting? Hmmm....'tis a conundrum wrapped in a riddle lounging on a LayZBoy, isn't it?
More later.
We had never seen the show before, but seeing as there was nothing else on that evening that we felt like watching, I said half-joking, "Let's see if this guy knows what's wrong with me!". Imagine my surprise when, a mere fifteen minutes into the episode, he mentioned "costochondritis". I ran to the internet on the next commercial break and, sure enough, the description of the condition matched up perfectly with my mis-named malady, Quico.
The good news is that it's a muscular condition so, as the numerous tests and scans will attest, all the major organs are pretty much off the table as potential suspects. The bad news is...well, that it's a muscular condition. Pretty much the number one treatment for costochondritis is - REST. (Debt Daddy stifles a derisive giggling fit as the irony of "rest" becoming a four letter word in his vocabulary hits home.) After the whole "deck debacle" that brought about this condition in the first place (think about that - working on their deck put me in the hospital, and then they criticize my work and refuse to pay me the balance - this is the living cliche of "adding insult to injury") I'm going to have to work harder than ever to make up for lost wages...while resting? Hmmm....'tis a conundrum wrapped in a riddle lounging on a LayZBoy, isn't it?
More later.
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