February 2009

Get  a free sample of SoftSheen-Carson hair products during Black History Month.

Ikea Sale. Image courtesy Steve Webel

Ikea is having a three-day sale along with free breakfast from February 13 to February 15. The free breakfast is available until 10:30 AM each day and includes a small free breakfast (a 99 cent value) and one cup of coffee (a 99 cent value).

Saturday February 13

• The Jonaker 400-thread count sheet set (includes all sizes) - $9.99

Sunday February 14

• Mysa Stra down alternative comforter, warmth rate 3 (includes all sizes) - $19.99

Monday February 15

• Malm 3-drawer chest - $39.99

Here are a few of the great deals for February 10, 2009:

• RiteAid has a great offer where you can receive $50 in coupons, which includes a $5 off any $25 purchase, if you create a new account.

• Get a 2-year subscription to Inc. magazine for just $4.50 from BestDealMagazines.com. Inc. is a magazine designed for entrepreneur’s, CEO’s and owners of small-to-midsized companies that want to succeed in today’s competitive business environment. Use coupon code PXCJ215 to get 15 percent off.

• Macy’s is offering 99 cent shipping on all clearance items with the coupon code 99CENTS.

• Get 30 percent off your Kohl’s purchase with your Kohl’s Charge Card with the code PRES30DAY (Valid 2/11 to 2/17). Card holders can also use coupon code MVC3379 for free shipping (valid until 2/15).

Good Debt versus Bad Debt

You probably often hear financial experts discuss the importance of keeping bad debt low, while effectively managing good debt. In fact, creditors assess the balance of your good debt versus bad debt when determining whether or not you are a good candidate for a loan or a line of credit.

So how can you determine what is good debt or bad debt? While the answer to this question can vary to a certain extent, the following are a few different types of debt that are consider either good or bad:

What Is Good Debt?

“Good debt is investment debt that creates value; for example, student loans, real-estate loans, home mortgages and business loans,” explains Eric Gelb, author of Getting Started in Asset Allocation and CEO of Gateway Financial Advisors.

Generally, debts that are related to investments are considered ‘good debt.’ People are often surprised that debt can be considered an investment, but there are actually many different types of debt that are deemed investments.

For example:

• Buying a Home: Since houses generally go up in value over time, buying a home is actually a great investment! While it often represents most people’s largest debt, a home purchase can actually be great for your financial well-being.

• Paying for College: Attaining an advanced degree ultimately leads to higher pay, which means that while going to school may incur some debt, it eventually leads to higher income over a lifetime.

What Is Bad Debt?

While bad debt is not always avoidable, your goals should be to keep these financial obligations as much as possible. Bad debts are essentially anything that creates an unbalance in your financial health.  Consumable products, for example, are a prime example of bad debt. In many cases, people do not begin paying them off until well after the purchased item has been used or consumed.

For example:

• Credit Card Debt: Credit cards can be a useful tool – as long as you are sure to pay off the FULL balance each month. Allowing bad debt to build and only making the minimum monthly payments can lead to financial problems and a debt spiral that can last for years to come. Avoid this problem by using your credit card judiciously.

• Buying a New Car: It’s a harsh truth, but financing a new car is one of the worst financial choices you can make. In addition to losing a large portion of its value once you drive it off the lot, the impact of depreciation can mean that much of your car’s value is depleted before you even pay off the debt. If you must buy new, make a down payment of at least 20 to 30 percent of the car’s value. The best choice is to purchase a used car from a reputable dealer that is offering to certify the vehicle and provide some type of warranty.

• Paying for a Vacation on Credit: If you are planning a vacation, be sure to save money to cover your travel costs rather than putting it on credit. Never go into debt to finance a vacation. Not only will you be paying for your trip long after you return, the vacation will actually end up costing much more due to interest.

Cleaning Up the Bad Debt in Your Life

Now that you’ve learned a bit more about the differences between good debt and bad debt, make an assessment of your debt. How much good debt do you have? How much bad debt?  After sorting your debts into the two categories, start thinking about ways that you can reduce your bad debts.

One of the best ways to lower your bad debts is to set aside a specific amount of cash each month to pay off credit cards, auto loans and other bills. Some people are tempted to leverage their good debts (such as home equity) to pay off bad debts (such as credit cards). This is generally a bad idea and should be avoided. Instead, focus on paying your good debts faithfully while progressively working on lowering your bad debt. While it may take some time to accomplish, even small steps can make a big different in your overall financial health.

Debt Reduction Tools:

• What Will it Take to Pay Off My Credit Card?
• When Will You Be Debt Free?

What could possibly be bad about getting something for free? When freebies come with unwanted strings or when they are outright scams, you are wise to turn them down. In order to reap the rewards of freebies and giveaways, it is important to learn how to spot the tell-tale signs of a scam. By taking a few simple cautionary steps, you can avoid these traps that scammers set while still enjoying free products and prizes.

Try some of these tried and true tips to avoiding potential freebie rip-offs:

Never Use Your Personal or Work Email Addresses

Do not let your personal or work email account become flooded with freebie-related mail or unwanted spam. Instead, sign up for a free secondary email through Yahoo, Hotmail or Gmail and use this email address for all your freebie offers. This step will prevent the mass email collections sent by spammers from affecting your more commonly used home or work email addresses.

Avoid Giving Out Your Phone Number

In most cases, you should avoid giving out your phone number for freebie offers unless you are absolutely sure that is necessary for some type of notification of winnings. You might try writing (UL) unlisted in the phone number field or you look into sites such as Rejection Hotline to find secondary phone numbers for freebies. This step will thwart those unsolicited phone calls that could potentially drive you mad.

Is it Truly a Freebie?

As you look over the freebie offer, be critical. Is it really a freebie, or is the freebie tied to signing up for another service or product that could lead to hidden charges or commitments? These offers usually have something noting addition commitments, such as (*participation required), meaning that the sponsor will require you to answer survey questions, sign up for other samples or even purchase various other products in order to remain eligible for your gift.

When in doubt, enter a rarely used e-mail address to test these offers out. Oftentimes, the continual onslaught of questions or requirements will make you decide not to continue. Examine these types of offers carefully and reject those that are simply too time consuming. In many instances, these offers involve answering survey after survey only to find out in the end that you don’t even qualify for the free sample.

If the Offer Seems Too Good to Be True, It Probably Is

Remember that you are looking for freebies that are truly free; those with no hidden charges or lasting commitments. Watch out for freebies that seem simply too good to be believed. One favorite tactic used by scammers is offer a high-value item, such as an iPod, Xbox or other trendy electronic device under the guise of a free offer.

Ignore That Spam Email

Spam and other unsolicited messages in your email should be marked as junk mail and deleted. Do not even waste your time on worthless, unwelcome offers of winnings or prizes. Some email clients and web services allow you to screen your email, while others have spam filters in place that are quite effective at sorting through junk messages. Remember, cynicism is a good strategy when combating tricks played by freebies scammers. By using a secondary email address you can keep your inbox free and clear.

Receiving freebies is fun, but it is important to keep your eye on the prize and steer clear of freebie scams. By taking a few simple steps to protect yourself, you can feel secure about applying for freebies without worrying about unscrupulous scam artists.