================================================= Expat Worlds Monthly Digest ================================================= April, 2007 Vol. 9, Issue 4 .....IN THIS DIGEST..... ==== THE STORY =================== -=Banks & Credit Cards=- ==== OTHER EZINES ================ ==== EW SPECIAL ================== -=Bye Bye Big Brother=- ==== HUMOR, TRIVIA, NEWS AND MORE... == -=Trivia=- -=News Story=- -=Jokes=- ==== THE RESOURCE TIP ============= -=Privacy Patrol 2.9=- ==== INSIDE THE CURRENT EXPAT WORLD == -=Table of Content=- ==== THE STORY ================================== BANKS & CREDIT CARDS Bank and Lawyers fall into the same bottom level of the moral chain in Expat World's opinion. The ordinary Joe or the small business owner are taken financially time in and time out by most banks. You have to be very big time in personal wealth or be a very large business to get a fair shake. It is with this in mind that we give you some tips on how to save an ounce of skin or so sometimes in dealing with banks and credit card companies. Although this was written for those using US banks many of the attitudes to suck the little guy dry apply to banks the world over. TRICKS BANKS PLAY WITH INTEREST RATES Banks teach their loan officers a number of strategies to get an extra 1/4% or even 1/2% from borrowers. Recognize some of their tricks: * Doing the negotiating at the bank, which is familiar territory to the banker, is intimidating to the borrower. * Not mentioning the rate at all, but simply filling it in on the note. * "Since you need the money today, let's write it up at X%. Then we can talk later about changing it." The banker hopes you'll never bring it up again. He certainly won't. * Flat statement "The rate for this type of loan is X%." (Never true except for small consumer loans. There is always room for you to negotiate.) * Postponing the rate discussion as long as possible, hoping borrower will weaken under deadline pressure. * Ego-building. Bank president stops by during negotiations. * Talking constantly about how little the interest costs after taxes. And comparing it with finance-company rates, secondary mortgage rates or the cost of equity capital. The banker looks at the company's account as a package, including loans, average balances maintained and fees for service. Borrower options.- Trade off higher average balances for a lower interest rate on borrowings or vice versa. The borrower is at a disadvantage because he probably negotiates a loan only once a year or less, while the banker does this full-time. So prepare carefully for negotiations. Good Tactics for the Borrower * Ask interest-rate questions early-in your office, not his. Don't volunteer suggestions. * Negotiate everything as a package-rate, repayment schedule, collateral, compensating balances. The banker's strategy will be to try to nail down everything else and then negotiate the interest rate when the borrower has no more leverage and no room to maneuver. * Be prepared with an expression of surprise and shock, even rehearse it before a mirror. React that way when the banker mentions the interest rate, no matter what the figure is. What Banks Don't Tell You * Banks like to advertise their effective annual yield, whereas money-market funds are legally permitted to advertise only the simple interest rates. The long-standing rule inadvertently conceals the fact that money-market funds do compound interest on a daily basis. If a bank and a money-market fund pay the same rate, the bank will appear to offer more by advertising the effective rate. * Some banks say they let you draw on all checks immediately, provided you put up another bank account as collateral. Catch.- If a check backed by a six-month certificate bounces, the bank can break into the certificate before maturity. If this happens, you will have to pay an interest penalty. Protection: Pick a bank that will allow you time to cover a bounced check before it takes money from your time deposit. Be sure your bank has this policy before you decide to use a time deposit as collateral. * Don't bite if the bank offers you a big savings in return for a lump-sum payoff of the old low-interest mortgage on your home. The catch: The discount "bonus" comes from principal- not interest-and is taxable income. You will gain a greater return on your money if you set aside the amount sought by the bank and invest it yourself. * Checks dated more than six months ago are usually not cashable, no matter how much money the issuer has in the bank. (Exception: US Treasury checks are valid indefinitely.) * If the amount written on the check in words is different from the amount written in numbers, the bank will pay the sum shown in words. * Be careful when endorsing checks. To prevent loss of money when sending checks by mail for deposit, write "For Deposit Only" above your signature on the back. That limits the endorsement. An endorsed check with nothing but a signature is the same as cash and can be used by anybody if it's lost or stolen. When the Bank Can't Bounce a Check The bank may have to honor a check if it takes too long to bounce it. The Uniform Commercial Code requires that the bank take some action by midnight of the business day after it receives the check. But the bank gets more time if there's an emergency beyond its control-for example, a computer breakdown. Checks Marked "Payment in Full" If there's a bona fide dispute as to the amount owing, the creditor must be wary. Alternatives.- Reject the check and demand full payment. Or Accept the check but run the risk that payment will be deemed to have settled the disputed claim for the lesser amount. It's easy enough for a debtor who wants to pay less than the amount for which he's billed to create a dispute on the basis of quantitative or qualitative deficiencies in the goods or services supplied. Stamp the check with a statement to the effect that "Check is accepted without prejudice and with full reservation of all rights under Section 1-207 of the Uniform Commercial Code." The effectiveness of this technique is untested in the courts, but it may help to protect a creditor's rights and provide leverage in a settlement. 12 Ways to Avoid Being Ripped Off by Your Bank 1. Never borrow on a typical installment-loan basis. These loans are front-end loaded. That is, you pay interest on the original balance of the loan through the entire term of the loan, even though you are reducing the amount you owe every month through your repayments. 2. Never buy credit life and disability insurance from a bank 3. Negotiate before taking out a mortgage. Don't assume that such items as interest rates, "points" (prepaid interest) and closing costs are set in stone. You have to speak up. 4. Consider paying off the principal on your mortgage early. 5. Don't allow the bank to force you to make payments into a bank escrow fund for your home insurance and property taxes. 6. Never borrow through your credit cards. 7. Know the pitfalls of bank safe-deposit boxes. Bank safe-deposit boxes are not impervious to break-ins, fires or floods. If anything happens, the contents of the box may not be insured under the bank's insurance policy. 8. Get the details on your bank's "hidden" fees. Although many bank customers can now withdraw funds from ATMs in other locations, (such as those in supermarkets, health clubs, video-rental stores or in other banks), this added convenience is rarely without an added fee. Your bank may even be one that continues to charge for use of its own ATMs-a practice that is now thankfully rare. The latest trend is for banks to add a $3.00 fee on to any transaction that requires a human teller. So before stepping up to do business with someone behind the counter, find out how much extra the teller will charge you. 9. Beware of overdraft checking. This service allows you to write checks for more than you have in your account. It's based on customers' fear that their checks will bounce. While it may sound like a bargain, overdraft checking is often nothing more than an expensive way to get you deeper into debt. 10. Avoid bank Individual Retirement Accounts (IRAs). While IRAs are a fine idea, banks rarely offer the best deal in town. Usually, their rates on certificates of deposit are not competitive with other institutions and may be one to three percentage points below the market. 11. Do preventive maintenance on your personal bank account. Its always smart to get on a first-name basis with the manager and several tellers of the branch of your local bank. 12. Use a small bank rather than a big one. At big banks, the attitude often is, "We do it our way or we don't do it at all." But smaller banks tend to be more flexible and rarely have a large bureaucracy for you to contend with. The Lazy Ways to Save Most people think that saving money involves a lot of work. In fact, it takes little effort or time to cut expenses by thousands of dollars a year. * Waived credit card fees. In recent years, credit card companies have hit consumers with a bevy of pesky fees, such as over-the-limit fees and late fees on minimum monthly payments. These can run as high as $25 each. If it is the first time you are paying a bill late- or if you have a legitimate excuse--call customer service. Ask that the fee be forgiven. * Old US savings bonds. There's no advantage to keeping bonds that have reached maturity. Dates are printed in the bonds' top right comer. Note: Within one year of the maturity date, Series E bonds that are more than 40 years old can be exchanged for HH bonds, which are issued at full face value and pay interest semiannually. If you miss the one-year deadline or hold other bonds past maturity, you will have to pay taxes on the earned income when they are redeemed. Exchanging bonds allows you to defer reporting the interest on the E bonds (and defer taxes on that interest) until you redeem the HH bonds. Helpful resource: Savings Bond Informer (1-800-927-1901 ... www.bondinformer.com), which provides written reports for your particular bonds, outlining timing issues, values, maturity dates and interest rates. Cost $15 for up to 10 reports. Also helpful.- The Federal Reserve Web site, www.federalreserve.gov. * Bank accounts for seniors. Although financial institutions seldom advertise it, customers over age 50 may qualify for special deals. Senior accounts typically carry no monthly fees or minimum balance requirements and often provide free checks, traveler's checks and ATM transactions. Helpful resource: For a list of banks that offer senior accounts, go to www.bankrate.com or call 1-800-243-7720. Credit Cards: Beating the System Credit cards have become a way of life for most Americans. However, very few people realize the unnecessary costs they incur by not utilizing their cards to their Credit cards have become a way of life for most Americans. However, very few people realize the unnecessary costs they incur by not utilizing their cards to their advantage or by not choosing the least expensive card to begin with. Determine which card is best for you. Banks offering Visa or MasterCard services have a wide variety of fees and interest charges. Some levy a $35 charge, while others will nick you for only $20. Moreover, interest charges for goods purchased range from 18% to 27%. And some banks charge interest from the date of purchase, while others charge no interest if you pay your monthly bill on time. Watch out, too, for bank cards that bill on a 24- day cycle, which means customers receive 14 bills per year. If you are used to paying all your bills once a month, one of those 14 could easily get delayed in the shuffle. Then you will be charged interest on the missed bill and get a reputation for being a slow payer. Even if the credit terms and service charges are to your liking, find out if there is any time limit on them. Some banks offer attractive deals as part of a special promotion that expires after nine months or a year. Take advantage of such offers- but be ready to switch over to another bank card if it is less expensive once the promotion expires. Credit cards can also be used as a bargaining chip to receive a discount from a merchant. Mer- chants typically pay a fee of 2%-7% of your charge when you use your credit card. With an American Express or Diners Club card, they may have to wait a while to get paid. It may be to the advantage of the merchant to go along with your suggestion of a 5% discount if you pay cash. Another way to beat the system: Take a cash advance on your credit card and pay directly for goods and services, rather than charge them, if bank interest charges are less for cash advances. If you are already being charged interest for merchandise purchases, take a cash advance and switch the balance due to the lower rate. If no interest charge has yet been levied, then time the cash advance to a day or two before the bill would be past due and pay off the merchandise portion of the bill. Reason for the timing maneuver.- Cash advances are charged interest from the day they are taken. Multiple credit cards come in handy if you want to go to the limit of allowable cash advances on each without having to use your card to purchase merchandise at high rates. If you have gotten in over your head, it may be best to take out a consumer loan to pay off a number of credit-card bills. Although the consumer loan rate may not be much cheaper than the credit card cash advance rate, it can be significantly cheaper than the card's basic interest rate on merchandise purchases. In addition, since bank credit-card payments are based on a 24-month term, one big advantage to consolidating your debts with a 36-month consumer loan is lower monthly payments. Low introductory credit-card rates that expire and convert to double-digit rates can be renegotiated. Competition among card issuers is strong, giving consumers the upper hand. Strategy.- One month before your rate expires, ask your card issuer for a new low rate. If the issuer refuses, shop for a new card. ==== OTHER EZINES & BOOKS ======================== ASIAN TIMES ONLINE Asia most trusted source for news, business,commentary and analysis from throughout Asia and our world. (www.atimes.com). ----- SURVIVAL BOOKS Go to and check it out! ----- japan-guide.com Extensive, up to date online guide on Japan living and travel related information. http://www.japan-guide.com/ ==== EW SPECIAL ================================= BYE, BYE, BIG BROTHER - The Report No Government Wanted Printed The new three volume (over 800 pages) blockbuster report, Bye, Bye, Big Brother, a report that no government wanted printed contains the philosophy of "PT", Bureaucrat Busting, Protecting Your Ass and ASSETS and getting Big Brother Out of Your Life in the Post 9-11 World. It is where the answers are. BBBB will educate all those who do not know what a PT is and refresh the memory of the old-timers. Check out the details at: ==== HUMOR, TRIVIA, NEWS AND MORE... ================ NEWS STORIES Scientists find bacon cure BRITISH scientists say they have found the formula for a perfect bacon butty, after 1000 hours and 700 variations of the beloved sandwich. The experts from Leeds University's Department of Food Science say the secret is in the crispiness of the bacon rashers, the BBC online reported. Four researchers tried different types and cuts of bacon, cooking techniques, types of oil and a range of cooking times at different temperatures. A shortlist was then tested with computers to measure the texture of the butties and 50 volunteers also judged each sarnie. The scientists found that two or three back bacon rashers should be cooked under a preheated oven grill for seven minutes at about 240C. The bacon should then be placed between two slices of farmhouse bread, 1cm to 2cm thick. "We often think it's the taste and smell of bacon that consumers find most attractive but our research proves that texture and the crunching sound is just as, if not more, important, said lead researcher Graham Clayton. The formula is: N = C + (fb (cm) . fb (tc))+ fb (Ts) + fc . ta, where N=force in Newtons required to break the cooked bacon, fb=function of the bacon type, fc=function of the condiment/filling effect, Ts=serving temperature, tc=cooking time, ta=time or duration of application of condiment/filling, cm=cooking method, C=Newtons required to break uncooked bacon. --- Deadly virus phone threat causes panic KARACHI (Reuters) - Mobile service providers in Pakistan have been inundated by calls from subscribers worried by a prank message that they could die of a deadly virus being transmitted via their phones. The rumor was so effective that some mosques in the country's biggest city, Karachi, made announcements that people were being killed by a mobile virus and they should be aware of God's wrath. In a prank reminiscent of the plot in the hit Hollywood movie "The Ring" in which people die within a week after watching a video, the prankster warned users that a deadly virus transmitted through phones had killed 20 people. There are more than 52 million mobile users among 160 million people in Pakistan. Farah Hussain, a spokeswoman for Warid Telecom, said that their customer service centers had been inundated with panicky subscribers inquiring about the so-called virus. The cellular operators moved to calm down subscribers and said in a joint statement: "These rumors are completely baseless. They do not make any sense in technological terms." --- Men to be spanked in new town CONSTRUCTION has started on the world's first Woman-town, where disobedient men will get a spanking. The 2.3sqkm Shuangqiao district in China's Chongqing will have a motto proclaiming its philosophy: "A woman never makes a mistake, a man must not refuse a woman's request." Li Jigang, the town's director of tourism, said: "In any tour group entering this town, female members would play the deciding role concerning shopping and other items of the itinerary ... A disobedient man will be punished by kneeling on an uneven board or by washing dishes in a restaurant." --- Oxymoron: Dead livestock ----- When I was fourteen years old, I was amazed at how unintelligent my father was. By the time I turned twenty-one, I was astounded how much he had learned in the last seven years. -- Mark Twain ----- Our culture runs on coffee and gasoline, the first often tasting like the second. -- Edward Abbey ----- "USA Today has come out with a new survey: Apparently three out of four people make up 75 percent of the population." -- David Letterman. ----- There once was a young Irish woman who went to confession. Upon entering the confessional she said, "Forgive me Father, for I have sinned." The priest said, "Confess your sins and be forgiven." The young woman said, "Last night my boyfriend made mad passionate love to me seven times." The priest thought long and hard and then said, "Take seven lemons and squeeze them into a glass and then drink it." The young woman asked, "Will this cleanse me of my sins?" The priest said "NO, but it will wipe the smile off of your face." ----- What is the difference between a golf ball and a g-spot? A man will spend two hours searching for a golf ball. ----- A young man, hired by a supermarket, reported for his first day of work. The manager greeted him with a warm handshake and a smile, gave him a broom and said, "Your first job will be to sweep out the store." "But I'm a college graduate." the young man replied indignantly. "Oh, I'm sorry. I didn't know that," said the manager. "Here, give me the broom, I'll show you how." ==== THE RESOURCE TIP ============================ Privacy Patrol 2.9 Privacy Patrol is a secure and easy program to clean activity and history traces and securely delete online Internet tracks stored in your browser and in hidden files. Privacy Patrol can delete cookies, clean index.dat files, clean the cache, erase the recent documents history, remove temporary files, free hard drive space, empty file and temp folders, just to protect your privacy and improve your system's performance. Download it at . ==== INSIDE THE CURRENT EXPAT WORLD =============== EXPAT WORLD NEWSLETTER (VOL.19 ISSUE 04) Table of Content: - TEACHER RETIREMENT HEAVEN - THE WORLD'S GREATEST CONSULTANCY - BIG BROTHER'S AT IT AGAIN - AROUND THE WORLD WITH EXPAT WORLD - EXPAT WORLD'S CYBERWORLD - AN EASY WAY TO MAKE A WEBSITE - SEND IN THE CARDS - LETTER FROM IRAN - EXPAT WORLD'S SECRET TO SUCCESS - BANKS & CREDIT CARDS - MATH FOR LIFE ADVANCEMENT - EXPAT WORLD'S PRIVACY WORLD - INTERNATIONAL SNIPS AND CLIPS - ELEVEN PROFESSIONAL TECHNIQUES USED BY PRIVATE INVESTIGATORS - CONTACT YOUR CONGRESSMEN - VULNERABLE TO THIEVES - LETTER FROM THAILAND - THE CLUELESS THAI "EXPERT" - CRAPPER RAPPER - YOU KNOW YOU'RE 40 WHEN - SOME FUNNIES YOU MISSING SO MUCH Each week the EXPAT WORLD DIGEST gives you just a smattering of what you can find in the EXPAT WORLD newsletter that we produce once a month. Why not get the whole story and subscribe now to our electronic version for just US $30 per year. Go to our website: www.expatworld.net to sign up. ********************************************************************* EXPAT WORLD - the newsletter of international living URL - http://www.expatworld.net Email - office@expatworld.net ---------- End of Expat World Digest --------------------------------