Thursday, November 29, 2007

Save on Candidate Gear

If you're looking to support Barak Obama, now is a good time to visit the official online store of his campaign. Through Sunday, December 2, enter coupon code "Fall07" to save 10% on your oder. Enter coupon code GFC to save 15%. I don't know if you can use the two together...

Also, the store is discontinuing some of its merchandise so there are some deals to be had, including $10 tank tops. Enjoy.

Labels: , , , , , ,

Thursday, November 15, 2007

Furniture Shopping

I moved in May, and when I did, the old behemoth of a dresser I'd been using finally broke to the point where it was more satisfying to dispose of it than to find a way to repair it. I'd gotten it for free and used it for more than three years, so I felt that the $15 I gave the guy at the dump to take it off my hands was worth it in the end. (Although it really is sad to send anything to the landfill, isn't it?)

Since then, I've been living without a dresser. I've shopped around, but everything was super expensive, cheaply made, or not my style. For a while, my temporary solution was to use a plastic set of drawers that I bought on sale at Target. I don't like bringing more plastic furniture into my home. It's not attractive; you can't recycle it; it always breaks; the potential bad effects of the off-gassing make me nervous; and it's made from petroleum. But, one night just after I got my new job, I was so frustrated by my lack of storage space and the complete absence of drawers in my life, that I drove down to Target and bought the drawers.

Meanwhile, I continued to troll Salvation Army, yard sales, and other sources of inexpensive furniture with no luck. Finally, I asked a friend who used to buy, refurbish, and sell furniture where she might go for an affordable, attractive dresser and she sent me to the antique shops on Market Street (in Northampton, MA).

I had a great time shopping, so on its own it was a good, affordable way to spend time, but it also turned out to be an excellent source of quality used furniture.

Before I went, I thought about what I'd like. I measured the spaces in my room where I wanted a dresser to fit. I wrote the measurements down and I brought along my tape measure and as much cash as I was willing to spend.

I found two dressers I liked in my price range at one store, but didn't buy them that day. I went home and mulled it over. It was clear that I wanted the larger of the two dressers for sure, so on Monday, I went back and made the purchase. Two friends went by the next day with their SUV and picked it up and delivered it for me.

A couple of weeks later, I realized that I was still thinking about the other dresser, the smaller of the two. I was also still using the plastic dresser because the first set of drawers wasn't quite big enough to hold everything. I also had an extra motivation: I wanted to clear out one of my closets for my boyfriend who's moving in next month. So, today on my lunch break, I decided to go back and get it. It was still there. I never seem to have the courage to dicker, although I think in general it's expected. But, when I went to pay, I took a deep breath and then asked the woman if they gave a discount for paying cash. She happily took off $4, about seven percent.

By paying cash I saved about seven percent, plus the interest I would have paid if I'd used a credit card.

Altogether, my purchases cost about $110. I have two beautiful, functional antique dressers and I love them.

Labels: , , , , , , ,

Free Stuff: o.b. tampons

Johnson and Johnson has set up a web site called mighty small where you can sign up to get a free sample pack of o.b. tampons along with an attractive little carrying case. You have to provide them with shipping information and an e-mail address, but you can opt out of receiving future e-mails and promotional material. You don't have to pay shipping. It takes 6-8 weeks for your sample to arrive.

I don't know how large the sample pack is or what the retail value of the case is, but o.b. tampons go for $5.91 plus shipping for a pack of 40 at Drugstore.com.

Labels: , , , , , , , ,

Bankruptcy Advice

It's been a long time since I've contributed to my Thrift blog, and a lot has happened in the interim. I'll update you at some point, but for now, I wanted to share an e-mail I sent to the mother of a friend over the weekend. The mother, whom I'm very fond of, had written me for advice about bankruptcy, because her other daughter is planning to file. I'm sharing the e-mail here because I think it might be helpful to others. The names have been changed. **Please don't make a bankruptcy decision based solely on my advice. I am not an attorney and strongly urge you to consult one before making a decision this important.**

One thing to keep in mind if you find yourself considering bankruptcy: you are not alone. Personal bankruptcies are up nearly 50% this year. Collectively, Americans carry almost $980 billion in credit card debt. It's time for things to change.

Also, one thing I don't mention below is that I think it's possible that you may have to report the amount of debt discharged as income in the tax year in which it was discharged. This all depends on whether the creditors report it...and this is a matter for you, your accountant, and your attorney to sort out. The laws have changed since I filed, but this was the law when I went through it.

The attorney I mention below is Denise Shear of the Ostrander Law Office in Northampton, MA. If you are in Western Mass. and need a bankruptcy attorney, I can't recommend her highly enough.
Here's my e-mail:

Hi, Mary,

I'm so sorry to hear that Julia is in this bind, but I'm so glad
that she has the courage to make the right decision for herself.

My parents are visiting for the weekend, so I don't have a lot of
time, but wanted to get some thoughts down to you quickly. (There's
actually a lot here. Once I started, I couldn't stop!)

I filed before the laws changed, so some of what I know may not be
applicable, but most of it will be, I think.

I can say, right off the bat, that it's important to find a good
lawyer. And by good, I mean affordable, knowledgeable, and kind. My
lawyer was crucial to making my bankruptcy bearable. The hardest part
is the shame and guilt. She helped me to see that that wasn't
necessary or helpful. She cost $1009 and that was payable up front.

My attorney practices in Mass. and I think Julia is in California,
right? If Julia would like to contact her she may be able to
provide her with a good referral. I also have some attorney friends
with California connections who might be able to help. Just let me
know.

My second piece of quick, major advice, apart from forgiving herself
and getting a good attorney, is to open a new credit card before her
debts are discharged, if she can. This will give her a new line of
credit that can a) help her in an emergency in the next two years when
it will be hard to get a card and b) help her re-build her credit.

When she goes through bankruptcy, she will choose which creditors to
include. If she has a card with a zero balance, she should NOT include
it. Her rate will likely skyrocket, but the card should still stay
active, and this will be a vital part of recovery for her.

My attorney advised me to stop making payments on my cards as soon as
I knew I'd file for bankruptcy. I don't know if this is still an
advisable practice--and I think in the end it did more damage to my
credit history...but she should ask her attorney about this. If she's
already fallen behind in her payments, then it's a moot point.

I was careful to always pay my rent and my utilities, no matter what,
even if I had to use credit cards. This is wise because it will make
it easier to get apartments and utilities after the bankruptcy. I
would advise using her cards to pay these things off before the
bankruptcy, but again, she may want to ask an attorney if this is her
situation and is advisable.

I would also want to make sure that she understands that student loans
and back taxes can never be forgiven. If her debt is largely made up
of these things, it may not be the right choice for her to file
bankruptcy. These things will follow her to her grave.

also, if she has an IRA, she should NOT touch it. She is allowed to
protect up to $10,000 of her own assets, I think, and she should
absolutely NOT drain an IRA to pay for credit cards, particularly if
she's filing bankruptcy.

One important to statistic to keep in mind: more than half of all
people who file bankruptcy once, file twice. I know that Julia does
NOT want to be in that category. The reason this happens is that
whatever was wrong in a person's life the first time--if it doesn't
get fixed, it'll just keep happening. Especially since now they are
burdened with shame and a bad credit score.

Whatever has been the cause of her insolvency, she needs to face it.
No matter how hard it is. If she has health issues, depression, career
confusion. If it is the result of a bad relationship or reckless
spending--whatever is at the heart of the problem needs loving, brave,
honest attention.

I would recommend any and all of Suze Orman's books. Most importantly,
"Young, Fabulous, and Broke," which will give easy-to-digest practical
advice. I think she should immediately read that and either "Money and
Women" or "The 9 Steps to Financial Freedom" (or all three).

What she needs is a way to understand her relationship to money so
that she can get herself back on track. These books will help her to
understand her self and they will also help her to craft a realistic
budget and make a plan for moving forward, with or without bankruptcy.

Before the bankruptcy, she should do some practical things. She should
take care of anything and everything she can that she will need that
depends on a good credit score.

So, apart from getting a new credit card with zero balance, she should
get herself some health insurance. (I think Alice mentioned that
Julia didn't have any and is self-employed?) If she is going to
stay in California, then she has lots of affordable options. It will
be easier to get health insurance without a bankruptcy on her record.
And it will be easier to avoid future financial disaster if you have
insurance, and also it is an important step towards taking good care
of yourself, to invest in health insurance.

I suggest she start here:
https://www.blueshieldcaplans.com/(ykulyw45h25qigvz41ttxxvb)/default2.aspx?marketcode=00000203MC

Second, she should sort out her living arrangements. If she needs to
rent a room or get a new apartment, she should try to do that BEFORE
her debts are discharged. Same with a car. She will not be able to get
an auto loan for some time after the bankruptcy. (She may not be able
to get one now...but if she depends on having a vehicle, she should at
least consider her options.)

She should also come up with a solid plan for how she will live after
the bankruptcy. If she has been meeting her basic living expenses by
borrowing, the she will have to have a way to live once her credit
cards or other creditors are gone.

She should also check her credit score and print out her full credit
report now. She should keep this on file and then check it once a year
to be sure that everything is in order, and hopefully to watch her
score climb.

Once her debts are discharged, her job will be to a) continue to be
kind and forgiving with herself b) live within her means c) establish
good credit and raise her credit score to 760.

She can establish good credit and raise her score to 760 by continuing
to make regular payments on debts that didn't go away (student loans,
taxes). And by making small purchases on that zero balance credit card
she kept and then paying it off EVERY month in full. This card is
never, ever to be used for things she cannot afford to pay off
immediately, unless there is a dire emergency.

Six months after the debts have been discharged, she should apply for
one new credit card. Never accept a card that requires an annual fee.
Every six months, she should apply for a new card, based on offers she
receives in the mail or offers she finds online, until finally she is
approved for a new one. No matter how high the interest rate, she
should take it, and use it for small monthly purchases--a tank of gas,
her cable bill, etc.

It's important to only apply for credit once every six months because
applying for credit LOWERS your credit score, and our goal here is to
get her score UP. it's a balancing act.

She should never close a card, no matter how high the interest. We
want her to have a good debt-to-income ratio. And we want her to have
a good available credit to debt ratio. So, for instance, a person with
$25,000 of available credit (on cards) who is carrying a balance of
$5,000 will have a better credit score than a person with no credit
cards or a person with one $500 credit card and a zero balance.

But, all that stuff will come later.

For now, it's important to make a wise decision about whether
bankruptcy is the right thing, and then proceed bravely, gently, and
responsibly.

So, quick review of the most essential things:

1) Forgive yourself.
2) Get a kind, affordable, knowledgeable attorney.
3) Do not touch your IRA
4) Do everything you can to make sure you have one credit card,
active, with a zero balance at the time your debts are discharged.
5) Remember that taxes and student loans cannot EVER be discharged.
6) Get Suze Orman's books, read them, and do the work.
7) The Orman books will help her to do the most important thing (after
forgiveness), which is to understand why it happened and how you will
keep it from happening again. If watching is easier for her than
reading, I think there may be Orman DVDs...or she also has a TV
show...but, really, the books are vital.
8) Get health insurance. Blue Cross Blue Shield of CA is good and has
affordable plans for individuals.
9) Get an apartment or a car or anything else you really need squared
away before the debts are discharged.
10) Make a solid plan for how you will meet your living expenses
without credit cards or other loans available to you. If she's
thinking of going back to school, for instance, it's important to
understand that even though student loans cannot be discharged by
bankruptcy, a bankruptcy can make you ineligible to get new student
loans. So, if her plan is to start fresh with graduate school and a
new career, she should find out if she'll be able to get the loans
BEFORE she files. I was prevented from going to law school for this
very reason.
11) Print out a full credit report and KEEP it on file. www.myfico.com
is a good place to go. Re-check it every year, but not too often.
Inquiries into your credit score lower your credit score.
12) Immediately after your debts are discharged, begin working on
re-establishing credit.

I'll end with some good news. Bankruptcy is not the end of the world.
In fact, if you truly are insolvent, it is the most caring,
responsible thing you can do for yourself. Get the load off. Start
(sort of) fresh.

In my case, I was able to re-establish my credit relatively quickly.
Within two years, my credit score was back above 700, I was able to
get a car loan when my truck died, and I have lots of revolving credit
available to me, some of it at 0%. And, some mortgage lenders won't
consider a bankruptcy against you as early as one year after your
debts are discharged.

oh--that's one more thing. there is a lapse in time (I think it might
be a couple of months?) from when you file to when your debts are
discharged. you won't be free (or a person saddled with a bankruptcy)
until the debts are actually discharged.

I would suggest getting caller ID, if she doesn't have it already
and/or changing her number because the creditors will call,
constantly, at all hours until the debts are discharged.

It took a lot of very hard, very difficult work to climb back up. And
I'm still working on it. But it is possible if you're committed.

It may also be possible for her to do something OTHER than bankruptcy.
As I said, if taxes or student loans are the biggest problem, don't
file. There are also ways to negotiate payment plans that involve debt
reduction. She may not need to pay back ALL of her debt. She should
start with the debt counselors at the National Foundation for Credit
Counseling. www.nfcc.org, 18003882227. If they think they can find a
way to get you out of debt in five years, they'll sign you up for a
repayment plan. It will be better--SO MUCH--better than bankruptcy and
will resolve the matter more quickly, actually, because bankruptcy
lasts for more than five years on your record.

She may also be able to negotiate directly with the card companies or
other creditors. Or, if it's possible to get the money from a family
member or other benefactor as a gift or loan, that would be
preferable.

She may also want to consider other drastic measures--like moving back
home, if that's an option, or leaving California (which is so darn
expensive). If she suffers through a year in CT (or Massachusetts
where the state gives you health insurance, for instance), and could
live for free or cheap, then she might actually be able to
realistically reduce her credit card debt substantially. For instance,
if she could live for free or really cheap and could devote 50% of her
income to paying down debts for one year, could she reduce the debts
by $15,000 maybe? that's great progress! and maybe realistic. I would
urge her to consider that.

I had absolutely no where to go and no one to help. If she has
somewhere to go and someone to help, she should strongly consider
that. If that option is absolutely unavailable or unacceptable, then
she can choose not to do it, and choose bankruptcy instead. But it
should just be an INFORMED choice.

The new bankruptcy laws are pretty vicious. So, this is NOT something
to enter into out of sheer desperation. It should be carefully
considered and she should get good advice from an attorney and from
the NFCC. (Although, I think the NFCC is funded by credit card
companies, so they have a vested interest in making sure they get
their money...)

If any of this doesn't make sense, or if there's anything else I can
do, please don't hesitate to ask!

I hope you and Victor are well. I'm so glad Julia has your support.

I haven't talked to Alice since the baby's surgery, but I'm thinking of
them constantly and hoping all is well. You must have been out of your
mind with worry.

Much love,

Naomi

Labels: , , , , , , , ,