The Best Personal Finance Software for Your Pocket PC or Palm PDA

Using personal finance software on the PDA (handheld computer) has many benefits, including the ability to enter transactions as they happen. Palm and Pocket PC PDA users need personal finance software that renders readable graphs and meaningful reports on their PDA and that makes data entry simple.

PDA Operating Systems

Pocket PCs and Palms refer to two different PDA operating systems. Personal finance software for Palm PDAs will not run on Pocket PCs. Be sure to buy personal finance software for the correct operating system: Palm or Pocket PC (Win CE or Windows Mobile).

Desktop Software

It is convenient to have personal finance software on the desktop computer that synchronizes data with financial software on a PDA, byt desktop software is not necessary and not all PDA users are interested in using it. While you read the suggestions below for PDA personal finance software keep in mind:

• Even if PDA personal finance software comes with or will work with desktop software such as Quicken or Microsoft Money, PDA software does not require a desktop application.


• If you decide to buy stand alone PDA software, desktop personal finance software that will synchronize with the PDA software can be added later.

Desktop Synchonization Choices

For PDA users who already have personal finance software on the desktop or laptop computer:

• Either Pocket PC or Palm PDA users who use Quicken on the desktop: Nothing other than Pocket Quicken will do, and there is a version for Pocket PC and Palm.


• Palm PDA users who also use Microsoft Money on the desktop: Ultrasoft Money has been providing seamless data synchronization with Microsoft Money for years and is a favorite software application in the Palm user community.


• Those owning a Pocket PC and using Microsoft Money on the desktop: Sbp Finance , which is very stable, fully-featured personal finance software for Pocket PCs.

For PDA users who do all personal finance tracking on a PDA with no desktop software synchronization:

• The Pocket PC fans will find Sbp Finance to be the best, most fully-featured personal finance software developed for the Pocket PC.


• Palm PDA users will like SplashMoney's ability to download transactions from financial institutions via wifi and SplashMoney's excellent graphics.

The Importance of Keeping an Eye on Your Credit Bureau Report

Your credit bureau report is perhaps one of the most important financial documents you can have. It shows everything in regards to your credit history from applications to how well that credit is managed. It is designed to provide information on all credit based activities. Keeping an eye on your report to make sure that there are no mistakes is essential.

There are numerous ways that credit reports can obtain information that is inaccurate. This means that it is possible for your credit report to have errors that could be holding you back. Keeping track of your credit report and what is one also helps to ensure that you are protected against fraud and identity theft.

Every year you are able to obtain a free copy of your credit bureau report for most people this one time a year check will be enough to find any issues which may be on their credit report. Most credit reports are going to list more than a year of history. It also lists any late payments and missed payments. Every aspect of your report should be checked over including previous addresses.

It is especially important to make sure that you check on things such as credit inquires, that there are no debts you do not recognize and that all payments and most importantly paid off or settled debts are clearly listed or removed. It is common for there to be a delay or for settled debts to take longer to be marked as paid in full. It is important to keep track of this since these often have to be done manually rather than relying on the automatic reporting system most credit companies use to report information on their accounts to the credit bureau.

An important aspect to keep in mind, which should prod you to keep an eye on your credit bureau report is that the majority of consumers have errors in their credit report, according to multiple studies. The additional problem here is that any errors will remain on your report for a very long time unless and until you discover and dispute the items.

The information on your credit bureau report determines your credit score, how willing companies are to lend to you or extend you credit, and if they do, what interest rate they will charge you, since a low credit score tells them you are a higher risk for them. It is even a determining factor on whether you can buy a home or even rent one. This is why it is important to make sure that the information presented on your credit report is accurate and up to date reflecting the appropriate information for all the debts you owe as well as showing that there are no debts you do not recognize.

If you are someone that does a great deal of credit-based transactions, it is even more important to check your report and make sure that the information remains accurate. Credit and lending companies usually report at thirty, sixty and ninety day intervals. If you have recently made major changes just as debt consolidation or debt settlement, ask when the companies report and then check your credit bureau report to ensure that the information has been updated and reflects the changes that you have made. Keeping an up to date accurate credit report that is free of mistakes is one way to help protect yourself and ensure that you are able to obtain the credit and services you want. For more insights and additional information about your Credit Bureau Report as well as finding resources to dispute errors and get a free copy of your credit report from the major credit bureaus, please visit our web site at http://www.credit-help-center.com

Obama picks 3 financial regulators

BY ABDON M. PALLASCH Political Reporter

Saying there needs to be “a shift in ethics on Wall Street,” President-elect Barack Obama on Thursday introduced three new appointees he plans to put in charge of financial regulatory agencies.

Citing recent banking scandals, Obama said his appointees will work to correct them — but he conceded better regulators will not necessarily prevent another financial meltdown.

“We can have the best regulators in the world, but everybody from CEOs to shareholders to investors are going to have to be asking themselves, not only is this profitable, not only whether this will boost my bonus but is it right?” Obama said at a news conference at the Drake Hotel in Chicago.

Obama also defended his choice of conservative evangelical leader Rick Warren to speak at his inauguration, even though Warren has angered some of Obama's gay and lesbian supporters.

“It's no secret that I am a fierce advocate for equality for gay and lesbian Americans,” Obama said. “What I've also said is it is important for America to come together even though we have disagreements on certain social issues.”

Obama noted that Warren knew Obama disagreed with him on homosexuality and abortion but invited him to speak at his church anyway.

“And that dialogue, I think, is part of what my campaign's been all about,” Obama said. “During the course of the entire inaugural festivities, there are going to be a wide range of viewpoints that are presented. And that's how it should be, because that's what America is about. That's part of the magic of this country is that we are diverse and noisy and opinionated.”

Obama's nominees introduced Thursday included: Mary Schapiro as chairman of the Securities and Exchange Commission; Gary Gensler as chairman of the Commodity Futures Trading Commission; and Dan Tarullo as a governor on the Federal Reserve Board.

Obama's chief of staff Rahm Emanuel — who the Sun-Times reported Thursday spoke directly to Gov. Blagojevich about naming Obama's friend Valerie Jarrett to the U.S. Senate — watched Obama speak Thursday, but was the first one to leave the room after the news conference, taking no questions.

Obama: Financial bailout program needs overhaul

President-elect Barack Obama urged a revamping of the government's $700 billion financial bailout, saying in an interview broadcast on Sunday it had to increase the flow of credit to families and businesses.

"I, like many, are disappointed with how the whole TARP process has unfolded," Obama said, referring to the Troubled Asset Relief Program.

"There hasn't been enough oversight," Obama said in an interview on ABC's "This Week with George Stephanopoulos." "We found out this week in a report that we are not tracking where this money is going."

Stephanopoulos pressed Obama on whether he wanted U.S. President George W. Bush to request permission from Congress to use the second half of the bailout funds.

Obama, who takes over from Bush on January 20, did not answer directly but said he wanted to see the program changed to do more to help families stave off foreclosures and to increase the flow of credit for small businesses.

"What I've done is asked my team to come together, come up with a set of principles around how we are going to maintain transparency, what are we going to do in terms of housing, how are we going to target small businesses that are under an enormous business crunch?" Obama said.

The White House said on Friday that Bush administration officials were in discussions with the Obama team on the possibility of Bush making a request for the second $350 billion of the bailout funds.

Both the White House and an Obama transition official said no final decision had been made but The Washington Post said a request could come as early as this weekend.

The aim would be to ensure that the funds were in place on January 20, when Obama takes office.

The program, which has used mainly to bail out financial firms, is unpopular on Capitol Hill. Some of the funds also were used to help distressed U.S. automakers.

Obama said his team plans to "lay out very specifically some of the things that we are going to do with the next $350 billion of money."

"And I think that we can gain -- regain the confidence of both Congress and the American people that this is not just money that is being given to banks without any strings attached," Obama said.

Obama Announces Financial Regulators

Over the past few weeks, I've announced key members of my economic team, who are now crafting a 21st Century Economic Recovery Plan that will create 2.5 million jobs. But as I said throughout the campaign, what will be just as important to our long-term economic stability is a 21st century regulatory framework to ensure that a crisis like this can never happen again.

Today, I am pleased to announce two individuals who will be leading that effort - Mary Schapiro as the Chairman of the Securities and Exchange Commission, and Gary Gensler as the Chairman of the Commodity Futures Trading Commission. I'm also pleased to announce that Dan Tarullo will be bringing his years of expertise on regulatory and banking reform to the Federal Reserve Board as one of its new governors.

In the last few days, the alleged scandal at Madoff Investment Securities has reminded us yet again of how badly reform is needed when it comes to the rules and regulations that govern our markets. Charities that invested in Madoff could end up losing savings on which millions depend - a massive fraud that was made possible in part because the regulators who were assigned to oversee Wall Street dropped the ball. And if the financial crisis has taught us anything, it's that this failure of oversight and accountability doesn't just harm the individuals involved, it has the potential to devastate our entire economy. That's a failure we cannot afford.

Financial regulatory reform will be one of the top legislative priorities of my Administration, and as a symbol of how important I view this reform, I'm announcing these appointments months earlier than previous administrations have. These individuals will help put in place new, common-sense rules of the road that will protect investors, consumers, and our entire economy from fraud and manipulation by an irresponsible few. These rules will reward the industriousness and entrepreneurial spirit that's always been the engine of our prosperity, and crack down on the culture of greed and scheming that has led us to this day of reckoning. Instead of allowing interests to put their thumbs on the economic scales and CEOs run off with excessive golden parachutes, we'll ensure openness, accountability, and transparency in our markets so that people can trust the value of the financial product they're buying. And instead of appointing people with disdain for regulation, I will ensure that our regulatory agencies are led by individuals who are ready and willing to enforce the law.

These are precisely the reasons why I chose the outstanding public servants who are with me today. Mary Schapiro currently serves as the Chief Executive Officer of the Financial Industry Regulatory Authority, the largest regulator for all securities firms that do business with the United States. Before that, she served as an SEC commissioner, and as Chairman of the Commodity Futures Trading Commission.

Mary is known as a regulator who's both smart and tough - so much so that she's been criticized by the same industry insiders who we need to get tough on. For years, she's used her position to educate investors about market risks, warn seniors and employers about retirement scams, and call for increased regulation of mortgage brokers long before this housing crisis hit. I know that Mary will provide the new ideas, new reforms, and new spirit of accountability that the SEC desperately needs so that fraud like the Madoff scandal doesn't happen again.

To chair the Commodity Futures Trading Commission, I've chosen Gary Gensler, who brings a wealth of expertise from both the public and private sectors to this position. In addition to serving as Under Secretary of Treasury during the Clinton Administration and a Senior Advisor to the Senate Banking Committee, Gary also gained a deep knowledge of our financial institutions during his decade as a partner at Goldman Sachs. As the new chairman of a commission charged with regulating some of the unsound practices and excessive leverage that helped cause this crisis, I know he will restore sound judgment and strict oversight to our markets. Along with Mary, Treasury Secretary-designee Tim Geithner, and others, Gary will also serve as a key member of the team that will reform our outdated financial regulations.

I am also announcing Dan Tarullo, one of my trusted economic advisors, as a new governor of the Federal Reserve Board. The Federal Reserve's monetary policy function will continue to be critical in navigating us through these trying economic times. But, as many of you know, the Federal Reserve also serves a vital regulatory function. Dan will bring a lifetime of experience to the Fed in economic policy, and financial regulation. A professor of law at Georgetown, Dan previously served as a senior economic advisor in the Clinton Administration, where he coordinated international economic policy and served as President Clinton's personal representative to multiple G-8 summits. His academic and policy work on financial regulation has anticipated some of the problems we have observed, and he has generated important ideas for how we should move forward. I have no doubt that his knowledge, experience, and independence will make him a valuable addition to the Federal Reserve at this critical time.

For over two centuries, our market has created a prosperity that is the envy of the world, and rewarded the innovators and risk-takers who have made America a beacon of science, technology, and discovery. But the American economy has worked in large part because we have guided the market's invisible hand with a higher principle - that America prospers when all Americans can prosper. That principle is why we put in place common-sense rules of the road to regulate our market, and it's why we need to restore and renew those rules today - so that every American from Wall Street to Main Street can have the chance to prosper once more. I have great faith and confidence in the ability of the team I've announced to make this possible. Thank you.

How to Dispute a Credit Card Charge

Has someone charged three hundred dollars at Critter Fritters when you don't even have a pet? Did the carpet company install a fuchsia shag instead of a beige berber? What do you do when you find charges on your credit card that you didn't make? What are your rights when it comes to a charge that you did make but are withholding payment on because goods and services weren't delivered as promised? During a lifetime of credit use, the chances of one or the other happening are pretty good. Know ahead of time what your rights and responsibilities are.

Disputing Fraudulent Charges

You can rest a little easier knowing that federal law is on your side. The Fair Credit Billing Act limits cardholders' responsibility for unauthorized charges to $50. If you do become aware of a credit card charge you didn't make, here's what you should do:

1. Call the credit card issuer immediately and explain what's happened. Provide all of the information you might have about how the card or card number may have been misused.
2. Be sure to review not only the current statement, but recent statements as well, for any additional unauthorized charges.
3. Be prepared to sign a form confirming that you did not make the charges.
4. If you haven't received confirmation (in writing or by phone) from the card issuer within a reasonable amount of time, contact the company again to make sure the charges have, in fact, been removed.
5. Stop using the card.
6. Check your other credit cards to make sure they have not been accessed.
7. Once the charge is removed, be sure to check your credit report with the three major credit bureaus (TransUnion, Equifax and Experian) to verify that your record has been updated and to see if any other fraudulent activity has taken place on your accounts.The Fair and Accurate Credit Transaction Act (FACTA) allows for all consumers to receive a free copy of their credit report from each of the three credit reporting bureaus every 12 months. Reports can be ordered through www.annualcreditreport.com or by calling 877-322-8228. You will not be able to receive a free report by contacting the credit bureaus directly.
8. Ask the credit card company to issue you a new credit card.
9. Throughout the process, keep a record of all phone conversations and the names of the representatives you spoke with. Also keep all letters, statements and other documentation together.

Disputing Charges When You're Dissatisfied

Let's say you paid for something with your credit card and now you want to withhold payment because you feel the product or service wasn't delivered as promised. Maybe you paid for roof repairs and it's still raining in your living room. Maybe you bought a new chair that collapsed as soon as you sat down. Here are the steps you'll usually have to take to resolve your issue:

1. Contact the merchant first. Many merchants are willing to replace an item, make a repair, perform a service again, or refund your money. Document your phone call and follow it up with a letter to the merchant confirming the details of the conversation.
2. If the merchant is unwilling to work with you, contact your credit card issuer as soon as possible. The card representative will need some basic information, such as the date and amount of the charge and why you wish to dispute it. Inform him or her of any attempts you've made to resolve the issue directly with the merchant.
3. Follow any instructions the credit card company gives you. For example, the representative may ask you to write a letter explaining the situation, or might want you to forward a copy of the letter you wrote to the merchant.

Every card issuer has its own procedure for handling disputes with merchants. You'll get more detailed information when you call your credit card company.

Whether you're dealing with an unauthorized credit card charge or one that you feel is unjustified, time is of the essence. Contact your credit card issuer as soon as you find your card missing or notice a mysterious charge on your statement. Likewise, contact the merchant as soon as you realize a product is defective, a service hasn't been performed as promised, or your bill is inaccurate. Diligence and good record keeping improve your chances for a satisfactory resolution.

The Fair Trade Commission (FTC) provides more information and tips for handling credit card disputes.

Credit Counseling Can Help You Deal with Your Debt

If you're deep in debt, you may feel like you're all alone. In reality, there are millions of consumers who, despite their best intentions, are in the same boat. Fortunately, there are professional credit counselors who can help you manage your debt and get your finances back on track.

Counselors Offer Help and Hope

Credit counseling is an option for consumers who want to repay their debt (as opposed to filing bankruptcy). The process typically begins with a discussion (in person, by phone, or via mail or the Internet) about your overall financial picture, including how much money you owe and to whom. You will likely discuss how you got into the situation you're in, with the goal of determining how you can avoid the problem in the future. For example, if you got behind on your bill payments because you got laid off, the counselor may encourage you to start building an emergency cash reserve when you're back on your feet.

You'll also go over your options for dealing with your current situation, one of which might be participation in a debt management plan administered by the credit counseling organization. Under a debt management plan, the organization negotiates with your creditors to accept reduced payments, eliminate or reduce finance charges, waive late and over-the-limit fees, and bring your account current. Some creditors do all these things, some do a few of them, and others do none, all depending on their internal policies. You then make one payment to the credit counseling organization each month, which it disburses to your various creditors. (This is not a consolidation loan.)

Different credit counseling organizations have different procedures, guidelines and fees. If you work with an organization that is a member of the nonprofit National Foundation for Credit Counseling (NFCC), counseling is usually free. Participation in a debt management plan may require a nominal set-up fee, but is more commonly limited to an average monthly fee of $14. Why so inexpensive? Because credit counselors don't rely on your fees alone to keep them in business; they receive a large portion of their funding from the creditors they mail payments to each month.

Is Credit Counseling Right for You?

If you're at the end of your rope, a credit counselor can provide the support you need. Participation in a debt management plan can mean you don't have to deal with (or dodge) calls from creditors and you don't have to juggle a stack of bills each month. Some organizations even help you reestablish credit once you've paid off your debt.

Of course, all of this does not come without a cost. Participation in a debt management plan can mean a "black mark" on your credit report because creditors are not receiving payments according to the terms of the original agreement. In reality, this may not be a reason not to participate -- if you're not able to make full and timely payments on your own, then you're going to end up with a mark on your credit report anyway.

For some, a debt management plan feels confining. You may have to live according to a fairly tight budget in order to make the monthly payment, and all your credit accounts (except, in some cases, one) might have to be closed.

And keep in mind that a debt management plan is not a quick fix. It takes many people three to five years to pay off their debt.

Many, if not most, of the counseling agencies that are members of the NFCC go by the name of Consumer Credit Counseling Service. Because there are so many different credit counseling organizations out there (some, members of the NFCC, and some not), be sure to ask about all applicable fees (for counseling and for participation in a debt management plan) before you sign up for services. Understand exactly what you're getting and what it's going to cost you. If you're interested, ask the organization about their education program. Some offices offer free personal finance classes.

Remember, you don't have to deal with bill problems all by yourself. For many consumers drowning in debt, credit counseling is the lifeline that helps them keep their head above water.

Manage Your Debt and Avoid Money Troubles

Good Debt, Bad Debt

Stories like the one above are not at all unusual. But not all debt is created equal. Some kinds of debt are actually OK:

• Your mortgage. Your home loan may very well be your biggest debt. But the interest you pay on your mortgage provides you with a tax deduction. Plus, over time you typically build equity in your property, which can be leveraged via a home equity loan or line of credit.
• Your student loans. Could you have gotten where you are in your career without your degree? Would you be earning what you are today without having gone to college? As burdensome as they can be, your student loans are probably worth every bit of work it takes to repay them. (And student loan interest may also be tax deductible.)

Some debt to minimize:

• Your auto loan. If you need a car and can't afford to pay cash, you'll need an auto loan. On the bright side, successful repayment of a significant debt like a car loan will help you build a positive credit record. Nonetheless, try to repay your car loan as quickly as your budget allows.
• Credit card balances. Credit can be a great financial tool, but with interest rates sometimes exceeding 20 percent, be careful how you use it. Typically, credit card debt becomes a problem when it takes you longer than three months to pay off your purchases.

How Much Debt Is Too Much?

A good rule of thumb is that your debt-to-income ratio (all your outstanding monthly debt payments including rent or mortgage) divided by your monthly gross income should not exceed 36-40 percent. For example, if your gross monthly income is $5,000, your total monthly debt payments (including rent or mortgage) shouldn't be more than $2,000. Most lenders will use this equation in deciding whether to extend you credit (though some lenders allow a larger debt-to-income ratio than others).

Ultimately, the appropriate amount of debt for you is what you feel comfortable with, not what any lender says you can afford. If debt keeps you awake at night or keeps you from reaching your other financial goals (like saving for retirement, buying a home or paying for your kids' education), then you've got too much debt. The less indebted you are to others, the more freedom you have.

Commit to Getting Out of Debt

Follow these guidelines for designing, and sticking to, a debt management plan:

1. Decide to do it. If your debt weighs you down and causes you stress, then commit to change things.
2. Create a plan. Create a budget so you know where your money goes and then devote all extra funds to paying down debt. Start with the debt that carries the highest interest rate first. Once you've paid that off, devote the extra money to the next highest-rate debt, and so on. As you pay off the balances, you may want to consider closing unnecessary accounts.
3. Change your habits. If you're a compulsive shopper or have a particular weakness (restaurants, jewelry, electronics), recognize it and make every effort to change the behavior and avoid temptation. Once you're out of debt, it will take ongoing effort to stay there.
4. Assess your situation. Keep track of your spending and your credit card balances every month. Look at your credit report to be sure it is accurate. Will it be a barrier to buying a car, a home or refinancing? Order copies of your credit report from each of the three credit reporting bureaus (Equifax, Experian, and TransUnion), as each may have a different version. The Fair and Accurate Credit Transaction Act (FACTA) allows for all consumers to receive a free copy of their credit report from each of the three credit reporting bureaus every 12 months. Reports can be ordered through www.annualcreditreport.com or by calling 877-322-8228. You will not be able to receive a free report by contacting the credit bureaus directly. (Unless you have been denied credit based on information obtained by a lender from the credit bureau.)
5. Stick to your plan. Making the decision to get out of debt is half the battle. If you stay committed, you'll succeed.

A Good Credit Report Gives You More Financial Muscle

If you thought you got the last report card of your life when you graduated from school, you might be surprised to find that you're being graded right now - on how you pay your bills. Just the way a good report card got you into the school or job you wanted, a good credit report can help you get the things you want now - a credit card, a mortgage or other loan, better terms on the money you borrow, an apartment, even a job.

Since good credit is such a valuable financial tool, you'll want to protect yours so that it's there for you when you need it someday.

How to Get Your Credit Report

Checking your credit report every year is a good idea; you can catch errors or fraudulent activity before they get out of hand. If you're planning to borrow money for a big purchase like a car or home, check your credit about six months before applying for the loan. Cleaning up or repairing your credit can take a minimum of 30 days and often much longer, so you'll want to know early if your report is less than glowing.

The three major credit bureaus that keep track of your credit history are Equifax, TransUnion and Experian. Lenders report your payment activity to the bureaus and are allowed to request and review credit reports when they are considering granting credit.

One credit report is usually all you need if you just want to get a general idea of how you rate. However, since the information in each of the three reports can vary, you should order one from all three bureaus if you want to know exactly what each one is reporting.

The Fair and Accurate Credit Transaction Act (FACTA) allows for all consumers to receive a free copy of their credit report from each of the three credit reporting bureaus every 12 months. Reports can be ordered through www.annualcreditreport.com or by calling 877-322-8228. You will not be able to receive these free annual reports by contacting the credit bureaus directly. However, if you've been denied credit within the last 60 days, you may be entitled to receive copies of your credit reports. Find out which of the three bureaus was used by your lender, and then contact that bureau for your report.

Experian
Equifax
TransUnion

P.O. Box 9532
P.O. Box 740241
P.O. Box 6790

Allen, TX 75013
Atlanta, GA 30374
Fullerton, CA 92834

(888) 397-3742
(800) 685-1111
(800) 680-7289

http://www.experian.com/
http://www.equifax.com/
http://www.transunion.com/

When you receive your report, review the following pieces of information for accuracy.

• Identifying information, such as your name, date of birth, current and previous addresses, Social Security number, current and previous employers, and your spouse's name.
• Credit information, such as accounts or loans you have open, outstanding balances, credit limits, and payment history.
• Public record information, such as bankruptcies, tax liens, and judgments (for example, child support payments you must make).
• Credit inquiries that indicate you recently applied for new credit. (Lots of recent inquiries, unless they're obviously related to shopping for the best terms on a loan, are considered a warning sign to lenders that you may be having money troubles.)

In general, negatives on your credit report would include:

• Any account in collections.
• Any court account (for example: liens, judgments, personal bankruptcies).
• Any items showing one or more late payments.
• Excessive creditor inquiries.

How to Clean Up Your Report

There are credit repair agencies that charge handsomely for the service of cleaning up your credit report, but according to the Federal Trade Commission (FTC), many of them make false claims. Besides, there's no need to hire someone to do what you can easily do yourself.

If your credit report is inaccurate, write to each credit bureau and include the following information:

• Your complete name.
• Your complete mailing address.
• Your birth date.
• Your Social Security number.
• The name and account number of the creditor and item you are disputing.
• The exact reason why you disagree with the information being reported.
• Your signature.

Include a copy of your original credit report with the letter, but keep copies of both for your records. You should receive a new, corrected credit report from the credit bureau after 30 days. If you haven't heard anything from them within that time frame, follow up with a second letter.

Just because your credit report works behind the scenes, don't forget to give it the attention it deserves. A good grade in "credit" is worth working for.

Financial Calculators Provide Quick Answers for Credit Card Users

Don't know which credit card is right for you? Not sure of the best approach to paying off your debt? Online financial calculators can answer these questions and many more. And they're fast and easy to use -- a big plus if you aren't great with numbers.

What Can Financial Calculators Tell You?

There are calculators for finding the answers to everything from "How much life insurance do I need?" to "How big of a mortgage can I afford?" With respect to credit cards, here are the fundamental questions a financial calculator can answer:

1. What impact do different interest rates have on my unpaid card balance?
2. What will it take (in monthly payments) to pay off my debt in a specific amount of time?
3. How long will it take to pay off my debt making a specific monthly payment?
4. Which is better, a higher-cost card that offers airline miles for dollars spent, or a lower-cost card that doesn't offer mileage?
5. Am I better off choosing a card with a lower interest rate or one with no annual fee?
6. Should I consolidate my debts?

To use the calculators, you'll need to come prepared with some key bits of information. For example, to find out what it will take for you to pay off your debt, you'll need to know how much you owe, what you plan to pay each month, what your interest rate is, whether you have an annual fee and how much it is, and in how many months you would like to be debt-free.

The calculation will then reveal how much you need to pay each month in order to get out of debt in the desired time frame. That number will change if the interest rate or your target date changes. That's the great thing about online financial calculators -- they give you the opportunity to change a figure here and there to compare scenarios.

Online financial calculators are great tools, but financial decisions aren't always black and white. While the numbers may clearly tell you to go one way, other considerations may suggest you go another. Be sure to think about all the factors that are important to you before making a choice. And if you do decide to implement a strategy to reduce your debt, be sure to also develop a plan for increasing your savings. Now that's a calculation that's fun to run!

You can find calculators at most financial Web sites. Just by entering the key words "financial calculators" in your favorite search engine, you can probably find what you need. Here are two to get started with: Yahoo Finance and Bankrate.com

When You Should and Shouldn't Purchase with Plastic

Americans are up to their necks in debt. Bankruptcy has become so commonplace that in October of 2005, the government made it harder for people to file. You might blame our love of credit cards for the financial predicament we've gotten ourselves into. But that doesn't mean everyone should just stop using credit cards entirely... just that they should use them carefully. In fact, there are some very good reasons to use credit regularly.

When Should You Charge It?

In general, it's a good idea to have at least one credit card and to use it to establish a positive credit history. Your credit record will be a key factor in getting approved for a major loan, like a mortgage or auto financing. A good credit history can also help you rent a place if you're not ready to buy.

Sometimes it's actually better to make a purchase with your credit card than with cash or a check. That's because credit cards often come with a special insurance feature that covers you if your purchases are damaged or stolen, which is particularly useful when your new TV arrives from the store with a cracked screen. Check the terms of your card (you can read the application literature or call the customer service line) to see if you have this coverage. Your credit card issuer may also play intermediary if you ever have a dispute with a merchant over the delivery of the goods or services you've bought.

For the most part, credit cards are also considered safer and more convenient to use, especially if you're traveling. Why worry about losing your money or having a personal check rejected when you can carry a single piece of plastic that's accepted most places and can be canceled if lost or stolen? If you make purchases online, your credit card can provide protection against Internet fraud, too.

Avoid Common Credit Card Pitfalls

The biggest mistake people make with their credit cards is overusing them, which is easy to do whether you have one card or a whole wallet full of them. You can avoid a credit crunch by following certain guidelines you set for yourself. For example, you may decide to have only one card with a very manageable limit so that you can't overspend. Or you might decide to use your card only for emergencies or things you can't pay for in cash (an airline ticket bought by phone, a tow for your broken-down car, an auto rental, or an online purchase, for example).

Think twice before accepting retail store cards. Though they often come with a tempting merchandise discount, they also tend to charge higher interest rates than the kinds of credit cards that can be used anywhere. Why add another card to your wallet, especially one that has limited usefulness? Not only does it tempt you to spend, it also makes you that much more vulnerable to credit card fraud.

Also, unless you pay off your credit card balance every month without fail, avoid using plastic for everyday purchases like food, toiletries, lunch and snacks. It can become a habit, and small charges tend to add up quickly. Use cash for smaller daily purchases. If you don't have the cash for an impulse buy, put the decision off for a day and ask yourself if you really need the item. Remember, the single most important component of wise credit use is controlling your spending.

Reputation, Not Just Rates, Important When Choosing a Credit Card

With so many credit card issuers clamoring to get their plastic in your pocket, how do you decide which offer to accept? You might think that the choice boils down to the best rates and lowest fees, but the lender's reputation - for fair prices, clear and upfront disclosures, and truly helpful customer service - is just as important as the credit terms. So how do you know which companies are reputable and which aren't?

You'd Better Shop Around If You Want a Card You Can Count On

Ask the same questions for every credit card you consider. If you're not happy with the answers for a particular company, don't do business with it.

• Have you heard of the company before?
• Do any of your friends or family use a card issued by this company?
• Does the company have a Web site? (Most reputable credit card companies do.)
• Does the company's Web site or promotional literature outline all of the card's key terms? (Such as the APR, annual fees, cash advance rates and fees, late and over-the-limit fees and grace period.)
• Are the finance charges, fees and other terms in line with other cards' costs and terms?
• Can you quickly and easily reach a live customer service representative when you call the company? (Try calling before you accept the card.)
• Can the representative answer all your questions to your satisfaction?

Card Issuer's Site and Sound Reveal a Lot

You can learn a lot about a credit card issuer on the Internet. First of all, if a company doesn't have a website, think twice about doing business with it. E-commerce has become such an accepted way of doing business; red flags should go up for any company that isn't online.

Assuming you do make it to a card issuer's website, be on the lookout for any signs that the company may not be on the up-and-up. Does the site have a professional look and feel? Is key information easy to find? Are credit card costs and terms displayed clearly?

Don't stop at the website. Call the card issuer's customer service line. Is your call answered promptly? Does the representative sound professional? Does he or she answer all of your questions directly?

If you feel uneasy about any part of your experience with the company, move on to another card issuer. With so many options out there, it's better to be safe than sorry.

Beware of Extra Fees for Card and Card Products

It's typical for credit card issuers to try to sell additional products or services to their cardholders. While most issuers are upfront about their products and prices, it's not unheard of for a particularly aggressive marketer to charge you for a product like credit protection (which is a type of insurance that pays the minimum payment on your credit card if you become ill or unemployed) that you didn't purchase or that you cancelled.

Another thing to be aware of is a company that requires you to pay a fee before it will send you the credit card. In most cases, you should refuse the card and look elsewhere for credit. If, however, you're having a difficult time establishing credit, you may not have a lot of options. In that case, check and double-check to make sure that the card issuer asking for the fee is a highly reputable one. Otherwise, you just might lose your money.

Federal Law Protects Consumers' Rights

Credit card companies are required by federal law to spell out all of the costs associated with the credit you are granted. This information should be included in any credit card offer you receive and on the back of the monthly statements. If you can't find information about a card's fees, be sure to talk to a company representative until you're satisfied. If that still doesn't reassure you, walk away and look into other credit card offers.

If you think you've been misled or deceived by a credit card company, you should immediately contact the Federal Trade Commission's Consumer Response Center at 877-FTC-HELP (382-4357).

When you give a credit card company your business, you're casting a vote of confidence. Make sure the company you choose deserves your business and your trust.

How to Choose the Right Credit Card

Once you've decided what you want in a card, choosing the best one is just a matter of comparing offers. You can narrow down your options by answering three questions.

Do you plan to pay off the card each month or carry a balance?

• If you plan to carry a balance from month to month (even if you don't plan on it but past behavior indicates you probably will), make a low annual percentage rate (APR) the single essential feature for any card you choose. APR is the annual cost of using the credit. The annual fee may also be a consideration, but if your balance is large enough (and the difference in interest rates is great enough), the savings you get from a lower interest rate would likely more than make up for it.
• If you won't be carrying a balance, the interest rate won't be important, so look for a card with no annual fee.
• Understand the difference between a credit card and a charge card before accepting either. A charge card does not allow you to carry a balance - you have to pay off your purchases in full every month - and charges you an annual fee in exchange for a variety of benefits, such as frequent flier miles or traveler's checks.

Do you need a reasonable long-term interest rate or the lowest introductory rate possible?

• If you plan to transfer a large balance from another card and pay it off over a short period, look for the lowest and longest-lasting "teaser" rate. Teaser rates typically last from three to nine months.
• If you're not sure you can pay off your balance during the intro period, or if you plan to use the card and carry a balance in the future, you may be better off choosing a card with a decent long-term rate than picking a card with an ultra-low teaser rate that skyrockets later on.

Do you want your card to offer special incentives, rewards or services?

• If you're going to use credit anyway, look for a card that gives something back. For instance, if you like to travel, consider a card that awards you with airline miles for making purchases or carrying a balance. If you plan to buy a car soon, you might find a card that offers a discount on a particular make of vehicle. There are also cards that offer points to be used to purchase all sorts of things at a discount. In other words, there's probably a card that offers some incentive or reward that would be useful to you.
• Don't spend money or carry a balance just to get the "prize." The important thing to remember with incentive cards is that you're spending real money to get those miles, gifts and discounts. If you also pay interest on your charges, you may end up spending more on that "free" plane ticket than you would have if you had bought it directly.

Now that you've answered the most important questions, you can shred the card offers that don't meet all your credit criteria, compare the terms (like interest rates, late fees and grace period) on the offers you have left, and choose the ideal card for you.

Establishing Credit in 3 Steps

There are lots of reasons why you might be looking to establish or re-establish credit. Maybe you're a recent college grad, a newly arrived immigrant, or someone who just went through a divorce. Or perhaps your dog used to eat your mail, causing you to pay your bills late...or not at all. Whatever the case, there are a few things you can do to establish credit even if you don't currently have any credit cards or loans.

Step 1: Open an Account

Open an account, preferably a checking account. By paying bills via check and not overdrawing your account, you begin to prove that you may be a good credit risk. Keep your monthly statements as proof that you're a good money manager.

Step 2: Get a Secured Credit Card

Secured debt is backed by some form of collateral (usually a savings account with the same institution that grants you the credit). The money deposited with the lender sits untouched unless you miss a payment or file bankruptcy, in which case the credit union or bank may be able to seize the assets in your account. This account gives the credit union or bank the confidence to take a "risk" on someone who doesn't have an established credit history.

"... there are plenty of companies that offer secured credit cards with no application fee"Don't be persuaded to pay a high fee just to gain access to a credit card -- there are plenty of credit unions and banks that offer secured cards with no application fee. Go to Consumer Action for information about building credit with secured cards, and to get a current list of available secured credit cards. If you have trouble getting a secured card on your own, as a last resort consider having one of your family members with good credit cosign your credit card application. Be aware that if you miss a payment, the credit union or bank would demand payment from your cosigner, guaranteeing, at the very least, a strained relationship between you and your family member.

Not everyone qualifies for a secured card. If you've filed bankruptcy recently, you may be rejected.

Step 3: Document Your Payments

"... you may be able to prove your creditworthiness by providing proof of timely bill payments."If you're already paying rent, utility bills, childcare expenses, student loans and so on, you may be able to prove your creditworthiness by providing proof of timely bill payments. Keep good records and ask for letters of recommendation from the individuals and businesses you make payments to. Then use them, plus proof of income, to convince a prospective lender that you are responsible enough to pay your bills in full and on time and would be a good credit customer.

A Few Final Words of Advice...

• Be patient. It takes time to establish credit.
• Always shop around for the right deal.
• Learn about credit products and terms, and your rights and responsibilities as a borrower. The best way to avoid being taken advantage of is by being well informed.
• Once you do get a credit card, make only small purchases on it -- ones you're absolutely sure you can repay on time.

Intro to Credit Cards

Unbiased Financial Information Provided by Financial Finesse

If you're like most consumers, you're eager to get a credit card. That's understandable -- they offer convenience (no need to carry around wads of cash), enable you to take advantage of opportunities (that TV you've been looking at just went on sale and you don't have your checkbook with you), and can get you through emergencies (try giving the tow truck driver an IOU when your car breaks down on the highway). Establishing credit is also a must if you plan to ever borrow money to buy a car or home. However, credit can also get you into trouble. At best, credit cards can make it difficult to stick to a budget. At worst, they can tempt you to overspend to the point of not being able to pay your bills. To enjoy the benefits of credit and avoid the potential pitfalls, you need to understand the basics of getting, using and managing a credit card.

Do You Want a Credit Card or a Charge Card?

With a traditional "credit" card, you charge items on your account and receive a bill later, which you have the option to pay in full or in part (at least as much as the "minimum payment due"). If you don't pay the account in full, the remaining balance will carry over to the next month and you'll be charged interest on it. This is referred to as revolving credit.

The other type of card, often referred to as a "charge" card, doesn't allow you to carry a balance from month to month; you have to pay off the total balance when you get your bill. These cards offer the convenience of plastic without the danger of getting into debt or paying high interest charges.

Both kinds of cards are offered under a variety of labels (gold, platinum, premier, and the like), each one offering different features and benefits. The gold and platinum types of cards are typically offered to consumers who have an excellent credit history.

Know Terms to Compare Card Offers

All credit cards come with a set of terms. These are, in essence, the "rules" for using the card. The terms must be disclosed in the card application literature; they're also on the back of every statement. Some of the most important terms you should be aware of are the interest rate, annual percentage rate, due date, grace period (the interest-free period of time between when you make a purchase and when you pay for it), cash advance rates and fees, the late fee and the over-the-limit fee. Always read the card terms carefully before you apply.

Don't Be Surprised by the Costs of Credit

Any credit card that allows a balance to be carried from month to month has an annual percentage rate (APR). The APR is a measure of the total yearly cost of credit (interest plus other charges). The periodic rate is the rate applied to your account balance to determine your finance charge for each billing period. Many cards also charge an annual membership fee that can range from $25 to $50, or more for gold, platinum and other "premium" cards. There will also be other fees for taking cash advances, making late payments and exceeding your credit limit.

Your Credit Limit Is What You Can Spend, Not What You Should Spend

Your credit limit is the maximum you are allowed to charge on your card, and is based on your financial background and credit history. If your balance exceeds your credit limit, you'll be assessed an extra fee each month until you pay off enough of your balance to bring it back down below the limit. To manage credit successfully, you need to make the distinction between the credit limit and the amount of credit you can afford. Just because the credit card issuer grants you a thousand-dollar limit doesn't mean you can afford it or should use it.

Choose a Card According to Your Payment Habits

Different cards fit different needs. Some charge lower interest rates but may carry an annual fee. These would be a good choice if you tend to carry a balance (the savings you get from the lower interest rate may exceed the annual fee). Many cards charge higher interest rates but don't impose an annual fee. These would be a better choice if you pay off your balance every month (if you don't carry a balance, you're not affected by the interest rate). Other cards offer rewards for certain levels of usage. These rewards (frequent flier miles or rebates for example) may be attractive to people who travel often for business.

Use Cards with Care to Protect Your Credit Rating

Using credit wisely means:

• Controlling your spending.
• Paying your bills promptly.
• Paying more than the minimum amount due.
• Keeping copies of your receipts and checking them against your monthly bill.
• Keeping a list of all your account numbers in case cards are lost or stolen.
• Guarding against card fraud and identity theft by cutting up your old cards and shredding statements and unwanted credit card offers.

NEC's loss widens, plans to cut 20,000 workers

Japanese electronics giant NEC Corp. said it will cut 20,000 workers worldwide as it tries to stanch widening losses from semiconductors and other businesses that have been hard hit by competition and the global economic slump.

 

NEC's net loss for October-December swelled to 130 billion yen ($1.46 billion) from 5.2 billion yen a year earlier, it said Friday. Tokyo-based NEC said it would sink into the red for the full year through March as well.

The company hopes the job cuts, which will be split equally between Japan and overseas, will help save 80 billion yen over the next two years.

As Japanese electronics makers struggled to stay afloat in a shrinking market, a Japanese newspaper reported Friday that NEC was in talks with Toshiba Corp. to seek a possible chip alliance.

The Nikkei business daily said the talks focused on the possibility of Toshiba spinning off its system chip operations and incorporating them with NEC Electronics Corp., a semiconductor unit owned by NEC.

NEC declined to confirm the report, saying it was not based on an official company announcement.

NEC said its operations worsened all round, from information technology to mobile and electronic devices, as the company was faced with a deepening global slump and escalating competition in the electronics industry. NEC also blamed the stronger yen for squeezing profits.

Revenue for the fiscal third quarter was down slightly at 948 billion yen from 1.05 trillion yen a year earlier.

By segment, electronic parts and semiconductor operations took the worst beating, with sales falling nearly 30 percent on declining demand for personal computers and display, as well as semiconductors for automobiles. Mobile and networking businesses also suffered because of falling investment by service providers.

NEC now expects a net loss of 290 billion yen for the full fiscal year through March, a steep plunge into the red from the 15 billion yen net profit projected in October. The company also cut its sales estimate to 4.2 trillion yen for the full fiscal year, compared with the previous forecast of 4.6 trillion yen.

NEC shares declined 6.5 percent Friday in Tokyo. The company announced earnings results after trading closed.

Asian markets mixed on weak economy, earnings

BANGKOK, Thailand (AP) -- Asian markets were mixed Friday, with Japanese stocks sinking amid dismal economic numbers and a string of quarterly reports from leading companies like Sony and Honda showing plunging profits.

Hong Kong's key index edged higher on speculation about an interest rate cut in mainland China or other stimulus measures. European markets rose in early trade as Wall Street futures strengthened.

Markets had logged some gains earlier in the week, buoyed by an upbeat earnings outlook from British lender Barclays and a $819 billion stimulus package in the U.S. moving closer to reality, but confidence soured in Asia on bad economic and corporate news, especially out of Japan, Asia's biggest economy.

"Investors are looking for a magic bullet but there isn't one. There isn't one solution that by itself can solve all the complex problems that the world economy faces," said Arjuna Mahendran, head of Asian investment strategy at HSBC Private Bank in Singapore.

"In typical myopic fashion, markets are alternating between despair and hope," he said. "The problem is that there is no real visibility about earnings and the economic situation and there may not be until the second half of this year or very late in the year."

Japan's Nikkei 225 stock average fell 257.19, or 3.1 percent, to 7,994.05 as investors reeled from a mounting pile of bad earnings reports and the latest economic data, which showed industrial production falling at a record pace and unemployment jumping.

Hong Kong's Hang Seng clawed back early losses to rise 0.9 percent to 13,278.21. South Korea's Kospi retreated 0.4 percent while markets in Singapore and the Philippines also lost ground. Australia's main index gained 0.4 percent. Markets in mainland China are closed all week for the Lunar New Year.

As trading got under way in Europe, France's CAC-40 rose 0.3 percent, Germany's DAX gained 0.1 percent and Britain's FTSE 100 rose 0.6 percent.

U.S. stock index futures were moderately stronger. Dow futures were up 38 points, or 0.5 percent, to 8,150, and S&P 500 futures were up 4.9 points, or 0.6 percent, at 847.70.

Industrial output at Japan's manufacturers plunged 9.6 percent from the previous month in December, the largest drop since Tokyo began measuring such data in 1953. The unemployment rate in the world's second-biggest economy jumped to 4.4 percent in December from 3.9 percent the previous month.

Honda Motor Corp. dived 9.2 percent ahead of quarterly results. The automaker's October-December profit, released after the market closed, tumbled 90 percent, hit by rising costs, a stronger yen and falling sales in key markets.

Megabank Mizuho Financial Group Inc., which had a quarterly loss of 50.55 billion yen ($559 million), slid 7.4 percent.

Electronics gaint Sony Corp., which Thursday reported a 95 plunge in October-December profit, sank 6.8 percent.

Toshiba Corp. tumbled 17.4 percent in the wake of forecasting a full year loss due to plummeting demand for its flash memory chips, used to store data in consumer gadgets like music players and digital cameras.

China stocks rallied in Hong Kong as speculation of a weekend interest rate cut by the mainland's central bank and other stimulus measures swept the market. Such rumors are frequent and often come to nothing.

"There are hopes for more stimulus measures because the authorities in China have said they are determined to stabilize the economy," said Castor Pang, an analyst at Sun Hung Kai Financial in Hong Kong.

China Telecom added 6.7 percent and insurer Ping An Insurance jumped 6 percent.

On Wall Street Thursday, the Dow Jones industrial index slid 2.7 percent to 8,149.01, while the S&P 500 index dropped 3.3 percent to 845.14.

Oil languished below $42 a barrel in Asia as more dismal U.S. economic numbers offset news that OPEC may further cut production. Light, sweet crude for March delivery rose 40 cents to $41.84 a barrel by midafternoon in Singapore in electronic trading on the New York Mercantile Exchange.

In currencies, the dollar fell to 89.40 yen from 89.92 late Thursday in New York, while the euro declined to $1.2870 from $1.2934.

Types of Business Insurance

Business insurance is a broad description that can be broken down
into a list of nine types of insurance policies and here I will briefly
explain the coverage and expand on these as individual topics. For now,
these are general descriptions so that we are talking about the same
thing when I use these terms in later articles.

Property Insurance

Property
insurance insures against loss or damage to the location of the
business and its contents. It can also insure the property of others in
your control when the loss occurs. Property insurance can be for a
specific risk. For example, a fire insurance policy insures only
against a fire loss to the location. A tornado is not a fire and,
therefore, that loss would not be covered. The insured location can be
owned, leased or rented.

Casualty Insurance

Some
insurers will lump property and casualty insurance together and refer
to the coverage as property and casualty insurance. In fact, packaged
policies of property and casualty are often the best purchase a
business owner can make. However, to have an understanding of the
difference between the coverage, I will discuss this as a separate type
of insurance. Casualty insurance insures against loss or damage to the
business.

Liability Insurance

Liability
insurance insures against liability legally imposed upon your business
because of the negligence of the business or its employees. Put another
way, it protects your business when the business is sued for negligence.

Commercial Auto

Your
personal automobile policy does NOT cover vehicles used by your
business. If your business uses vehicles or anything that is required
to be titled by your state, then you need a commercial auto policy.
Commercial auto coverage insures against property damage to vehicles
and damage caused to others by those vehicles.

Workers Compensation

You
will need to insure your employees against on-the-job injuries. Every
state is different. But, most states have put into place some form of
workers' compensation system. Workers' compensation is a system where
the employee is not allowed, by statute, to sue their employer for
on-the-job injuries; but, in return, the employer must participate in a
system that provides nearly automatic payment to the employee in case
of injury for medical bills and damages. There are many options for
workers' compensation coverage. Some states allow an employer to
opt-out of the system if the employer is self insured, some run the
system through private insurers while others use state agencies.

Business Interruption

Business
interruption insurance insures against loss or damage to the cash flow
and profit of a business caused by the business being unable to operate
because of interruption. The easiest example is to think about a
critical piece of machinery being struck by lightning. The repairs to
the machine may be covered by other coverage such as property or
casualty insurance. But, if you can not make widgets for three months,
than there is no replacement of that income without this coverage.

Health Insurance

To
be competitive, most businesses need to offer their workers health
insurance. This insurance offers a health coverage benefit to your
employees (and you).

Life and Disability Insurance

Life
and disability insurance protects the business against the death or
disability of key employees. For example, one partner carries a life
insurance policy naming the partnership as a beneficiary. If that
partner dies, and the business has planned properly, the proceeds of
the policy can be used by the business to buy out the share of the
decedent's partnership interest from the estate.

Other Insurance or Scripted Policies

It
could very well be that your business is so unique to have need for
coverage that is a mixture of some of the coverage listed above or
something written specifically for your particular risk. One can think
of some actresses, actors, or sports stars that have had legs insured
at some point in there careers. This would be an example of a scripted
policy.

Keep it Simple: Business Policies Cover Four Things

When considering what types of policies your business needs, it can
quickly become very confusing to keep the terms straight. An easy way
around this dilemma is to keep in mind that all business insurance and
all policy types cover one of four things: property, liability, people
or income.

Property: The property used in your business such as the
structure you do business in or the vehicles used in your business need
to be protected. Property and Casualty policies protect property.

Liability: No one is perfect, your business may make a
mistake and, especially if your business is open to the public, there
is always the chance your business will be held liable for an injury or
error. Liability policies protect against being held liable for an error or injury.

People: At the heart of every business are its people. You
and your officers, managers and employees are the company's greatest
assets and must be protected. People are protected by workers compensation policies, health and life insurance policies.

Income: Without income the business does not survive. In the event of a catastrophe, a business interruptionpolicy can provide income or allow your business to be set up in a temporary location to earn income.

By preparing a list of property, potential liabilities, people and
income categories for your business you will be able to wade through
most policy descriptions and get a good overall sense of what types of
policies you will need.

Citrix, Flextronics, Qualcomm, Sepracor: U.S. Equity Preview

Jan. 28 (Bloomberg) -- Shares of the following companies may
have unusual fluctuations in U.S. trading tomorrow. Stock symbols
are in parentheses and prices are as of 5:54 p.m. in New York.

Standard & Poor’s 500 Index futures expiring in March
lost 0.1 percent to 870.90. Dow Jones Industrial Average
futures fell 0.1 percent to 8,313.

Allstate Corp. (ALL:US) slipped 11 percent to $26.50. The
largest publicly traded U.S. home and auto insurer said it will
cut 1,000 jobs after the falling value of investments caused the
company’s first annual loss as a public firm.

Citrix Systems Inc. (CTXS:US) fell 7.2 percent to $22.46.
The maker of computer-networking software reported revenue of
$415.7 million in the fourth quarter, missing the average analyst
estimate by 3.9 percent, according to Bloomberg data. Citrix said
it will cut 10 percent of its workforce as the recession hurts
demand.

DryShips Inc. (DRYS:US) fell 15 percent to $10.35. The
commodities transporter said it has violated some financial
requirements of its loans and is seeking a waiver from its banks.

Flextronics International Ltd. (FLEX:US) dropped 10 percent
to $2.44. The maker of Microsoft Corp.’s (MSFT:US) Xbox 360 game
console said that, excluding some items, it expects to earn no
more than 7 cents a share in the fiscal fourth quarter. That
trailed the 15-cent average estimate of analysts in a Bloomberg
survey.

Qualcomm Inc. (QCOM:US) fell 4.8 percent to $35.04. The
world’s biggest maker of mobile-phone chips reported a 56 percent
drop in first-quarter profit and cut its annual sales forecast
after the recession curbed growth and hurt its investments.

Sepracor Inc. (SEPR:US) gained 16 percent to $15.75. The
maker of the Lunesta sleeping pill forecast earnings excluding
some items of at least $2.10 a share this year. That beat the
average estimate of $1.41 by analysts in a Bloomberg survey.

Fannie Mae Foreclosure Sale at 50 Cents on $1 Shows Price Reset

Jan. 28 (Bloomberg) -- With a sharp nod, Robert Parkin bids
$500,000 at the auction of a brick colonial house in Upper
Marlboro, Maryland, that the builder once valued at $1.1 million.

Seconds later, a competitor counters at $510,000, and Parkin
must decide whether to raise his limit on the unfinished, 4,878-
square-foot property with a stop-work order taped to the window.

This auction, 19 miles (30.6 kilometers) southeast of
Washington, is one of hundreds a day carried out on front lawns
and in hotel ballrooms nationwide by liquidators such as Williams
& Williams Marketing Services Inc. of Tulsa, Oklahoma. With 2.3
million residences in foreclosure, the sales are pushing down
prices to early 2004 levels in the hunt for new buyers.

“If you’re looking for expediency to get people back in
homes, un-board neighborhoods, clean up the rats, this is it,”
says Pamela McKissick, 62, the president of closely held Williams
& Williams. Banks, brokerages and government-sponsored mortgage
finance companies such as Fannie Mae hire the company to sell
houses one at a time or to liquidate entire portfolios.

Auctions are resetting real estate values at the
neighborhood level, while President Barack Obama tries to find a
way to limit foreclosures and revitalize the worst housing market
since the Great Depression. Bargain hunters such as Parkin, a 50-
year-old aerospace engineer who is shopping for a personal
residence, and mom-and-pop investors on the prowl for rental
properties, aren’t waiting for federal aid.

They are buying foreclosed properties for as little as 10
cents on the dollar. Lenders seized 9,787 houses a day in
December, or almost seven a minute. Even after the 26 percent
drop in residential prices since June 2007, there are enough
unsold homes to last 9.3 months at the current sales rate.

Falling Prices

Housing values may decline a further 15.5 percent this year,
based on December 2009 contracts tied to the RPX residential real
estate index. The RPX, developed by New York-based Radar Logic
Inc., measures the average price per square foot of residential
sales in 25 U.S. markets.

After median house prices fell 15 percent in November, the
most on record, home sales rebounded 6.5 percent last month, the
National Association of Realtors said Jan. 26. Distressed sales
accounted for almost half the total.

The California Association of Realtors said yesterday that
the price of a single-family house in the state plunged 41.5
percent last year. The Commerce Department may report tomorrow
that new-home sales fell 2.5 percent last month, based on a
Bloomberg survey of 69 economists.

Barroom Brawler

Auctions are the best way to determine the true value of
real estate, says Dean Williams, 47, the owner of the auction
house that bears his name. Sales through agents promote the
owners’ asking prices, while lenders emphasize the affordability
of monthly payments, he says, during an interview in Tulsa,
surrounded by shelves of books including “Intellectual Freedom
Fighter” and “Radicals for Capitalism.” His lip is scarred
from a bar-room brawl 28 years ago.

“We’re creating values beyond just short-term profit,” he
says. “Those values, we feel, are efficiency, transparency,
competition, stewardship.”

During the last real estate recession in the early 1990s,
brought on by the collapse of the savings and loan industry, a
temporary federal agency, the Resolution Trust Corp., served as a
central clearing house to dispose of foreclosed houses, offices
and stores. No such authority exists now, leaving private buyers
and sellers to work out their own deals.

‘Greedy Speculators’

Forced sales reduce previously recorded property values and
erode the $391 billion in local governments’ property tax rolls.
Auctions exacerbate the crisis, says Ira Rheingold, executive
director of the National Association of Consumer Advocates, a
nonprofit attorneys group in Washington.

“They are just furthering the depressed market, because
what they are doing is selling properties really, really cheap,”
Rheingold says. “I don’t know that it does anything for the
market except make some greedy speculators rich.”

Lawrence Summers, Obama’s director of the National Economic
Council, pledged in a Jan. 15 letter to congressional leaders
that the administration will commit $50 billion to $100 billion
to try to keep people in their homes. While government assistance
may slow the record pace of foreclosures, it won’t stop them.

“I’m anticipating that we’re going to see a frightening
increase in foreclosure activity in the first part of the year,”
says Rick Sharga, a senior vice president at the RealtyTrac real
estate data service in Irvine, California. “Everybody
underestimated just how severe this would be.”

Williams & Williams says it aims to triple its peak sales to
10,000 houses a month this year. In 2008, the company says it
generated $1.1 billion in revenue on 13,872 auctions.

Internet Bidders

About 14 percent of the transactions are won by bidders on
the Internet, and the Williams & Williams switchboard receives
30,000 calls a month, the company says. Its commissions average 6
percent. Auctioneers themselves can earn as much as $1 million a
year.

Williams, who bought the business from his father, Tommy, in
2003, bankrolled the December introduction of an affiliated
broadcast venture, the Auction Network, in 87 million households
and on the Internet. Auction Network sells everything from
antiques to condominiums and is developing a niche marketing the
personal effects of celebrities such as Ozzy Osbourne, the late
comedian Bob Hope and silent film actors Mary Pickford and
Douglas Fairbanks Jr.

While a team of Williams & Williams auctioneers was moving
through Maryland and Virginia on Dec. 16, a competitor, Irvine,
California-based Real Estate Disposition Corp., was wrapping up
an eight-day, 18-city tour at which it sold 2,842 homes for $210
million, according to Chairman Robert Friedman.

Swap-meet Partners

Friedman and Chief Executive Officer Jeffrey Frieden, both
47, met as teenagers when they were working at a swap meet. They
started privately owned REDC in 1990 to help dispose of
properties left by the S&L bust. They auctioned distressed real
estate for seven years before mothballing the practice. Two years
ago, they started again.

In November, the Trident IV private equity fund managed by
Charles Davis, chief executive officer of Stone Point Capital LLC
in Greenwich, Connecticut, bought a 50 percent stake in the
California auction house. Terms weren’t disclosed.

By packing hundreds of bidders into ballrooms at dozens of
auctions a day, REDC says it sold an industry-record 32,799
housing units for $3.4 billion last year.

Bank auctions, foreclosures and loan restructurings have
eliminated “about 60 percent of the bad subprime loans” that
triggered the industry’s collapse, Friedman says in an interview.
The rest will be worked out this year, he says.

New Foreclosure Wave

Now, a new wave of foreclosures is capsizing borrowers with
better credit in higher-cost houses who “got caught up in the
subprime frenzy and maybe overshot the mark,” Friedman says. “I
envision that wave to last probably another 18 to 24 months.”

Foreclosures and liquidations accounted for 34 percent of
the residential market in Los Angeles last year, 30 percent in
Phoenix and 27 percent in Washington, according to Radar Logic.

“Money is made, unfortunately, by the M&Ms of life:
Mistakes and misfortunes of others,” says Monte Lowderman, 41, a
Williams & Williams auctioneer from Macomb, Illinois.

The Upper Marlboro property was the third of 14 that
Lowderman’s three-man crew sold for $2.4 million that day. They
traveled in a rented Toyota sport-utility vehicle on a six-day
swing from Virginia to Massachusetts.

The house once belonged to Jeffrey Whitner, a 43-year-old
independent contractor who ran out of time and money to complete
the job. He planned to use it to showcase his building abilities,
he says. Whitner discovered the empty hilltop lot by driving
around the neighborhood in February 2004. He paid $86,000 to buy
it from an 80-year-old widow, public records show.

$1.1 Million Appraisal

The builder obtained a $651,300 interest-only construction
loan from SunTrust Mortgage Inc., a unit of Atlanta-based
SunTrust Banks Inc., property records show. That gave him enough
to complete 95 percent of the construction, he says.

Whitner says he obtained a $1.1 million appraisal on the
project and in September 2007 was closing in on new funding to
finish. Then the real estate market collapsed, and his bank
credit line vanished, he says.

Between starting and losing the project, Whitner fell a year
behind on child support for his 12-year-old son, owing as much as
$3,600, and ran up $11,034 on an unpaid credit card and personal
loan, according to a Prince George’s County, Maryland, judgment.

“Maybe I put too much pride in the home and wanted to make
it perfect for the owners,” Whitner says.

SunTrust foreclosed on Oct. 26, 2007, court records show.
Ten days later, Whitner defaulted on the mortgage for the
$228,000 condominium where he lived in Bowie, Maryland.

“I got really depressed,” he says.

Burning Building

Lowderman, who is about to auction the Upper Marlboro house,
spits chewing tobacco into a paper cup.

“What we’re seeing today, in my lifetime, it’s happened
once already,” he says.

His father, Jack, worked with Tommy Williams in an Illinois
farm-and-livestock auction firm until the 1980s agricultural
crisis doomed the partnership.

Tommy Williams resettled in Tulsa, where his sales exploits
are family legend. He says he once auctioned a burning building.

When son Dean graduated from Georgetown University law
school in Washington in 1989, he began flipping properties for
profit, buying houses and having his father auction them.
Williams & Williams was born.

Dean Williams says he honed his economic views reading the
Libertarian author Ayn Rand, and named his 8-year-old son for the
self-made businessman Hank Rearden in Rand’s 1957 novel “Atlas
Shrugged.”

“Our focus,” says Williams, “is much longer than prices
going up or down, even in a crisis of this magnitude.”

Unlit Townhouse

At an unheated, unlit townhouse in Capital Heights,
Maryland, Lowderman’s auction team has already disposed of a
residence that stood empty for eight months. The sale took seven
minutes and elicited a winning bid of $139,000. That was less
than half the $305,000 it sold for in December 2006 and 9 percent
below the price a previous owner paid in 2003.

The winning bidder in this and all auction sales must make
an immediate 5 percent down payment and arrange financing within
a month. The transaction is subject to the seller’s approval.

If Fannie Mae, the seller of the Capital Heights property,
accepts the offer, it will record a loss equal to half the loan’s
balance, according to public records. The Washington-based
government mortgage finance company, which hired Williams &
Williams, has absorbed a $56 billion beating on mortgage-related
losses, Bloomberg data show. The mistakes pushed it into
conservatorship last year. Fannie Mae couldn’t be reached for
comment yesterday.

The original lender, HSBC Mortgage Corp., a unit of HSBC
Holdings Plc, has recorded $33.1 billion in subprime losses.

‘Cash is King’

“There’s people who’ve lost a bunch of money,” says Juston
Stelzer, 29, who works with Lowderman as a “ring man,”
recognizing each bid at auction by belting out “Hey!” and
“Yes!”

“But cash is king right now. And there’s going to be some
people get filthy, filthy wealthy,” he says.

It’s decision time for Parkin, standing on an unfinished
floor in the unheated front room of the Upper Marlboro house.

As he peers into the muddy, unplanted yard, the winter sun
frames him in a spotlight.

Parkin says he’s stepped into $1 million tract houses that
don’t feel as hospitable as this one, with its granite counters,
stone fireplace and floor-to-ceiling windows.

Lexus and Ford

“Maybe it’s the analogy of closing the door of a Lexus and
closing the door of a Ford,” he says.

Mechele Silva, 39, a physician who lives nearby, says she
used to peek in the windows to glimpse the builder’s progress.

“It was so much nicer than the old houses that we lived
in,” says Louise Pearson, 84, another neighbor.

While the first minute at auction raised the offering price
more than fivefold, the next 60 seconds tick by without a bid.

“I had never done an auction in my life,” Parkin says. “I
didn’t want to get myself in a position I couldn’t handle.

Then he offers $520,000 and reclaims the lead. The
competitor’s face falls. The auction ends.

Lowderman asks for applause.

“When I won, I had this rush: What did I do?” Parkin said
later. “It was this blend of excitement. And terror.”

How To Create a Budget

Creating a budget may not sound like the most exciting thing in
the world to do, but it is vital in keeping your financial house in
order. Before you begin to create your budget it is important to
realize that in order to be successful you have to provide as much
detailed information as possible. Ultimately, the end result will be
able to show where your money is coming from, how much is there and
where it is all going.

Here's How:

1. Gather every financial statement you can.
   This includes bank statements, investment accounts, recent utility
   bills and any information regarding a source of income or expense. The
   key for this process is to create a monthly average so the more
   information you can dig up the better.

2. Record all of your sources of income.
   If you are self-employed or have any outside sources of income be sure
   to record these as well. If your income is in the form of a regular
   paycheck where taxes are automatically deducted then using the net
   income, or take home pay, amount is fine. Record this total income as a
   monthly amount.

3. Create a list of monthly expenses.
   Write down a list of all the expected expenses you plan on incurring
   over the course of a month. This includes a mortgage payment, car
   payments, auto insurance, groceries, utilities, entertainment, dry
   cleaning, auto insurance, retirement or college savings and essentially
   everything you spend money on.

4. Break expenses into two categories: fixed and variable.
   Fixed expenses are those that stay relatively the same each month and
   are required parts of your way of living. They included expenses such
   as your mortgage or rent, car payments, cable and/or internet service,
   trash pickup, credit card payments and so on. These expenses for the
   most part are essential yet not likely to change in the budget.
   
   
   Variable expenses are the type that will change from month to
   month and include items such as groceries, gasoline, entertainment,
   eating out and gifts to name a few. This category will be important
   when making adjustments.

5. Total your monthly income and monthly expenses.
   If your end result shows more income than expenses you are off to a
   good start. This means you can prioritize this excess to areas of your
   budget such as retirement savings or paying more on credit cards to
   eliminate that debt faster. If you are showing a higher expense column
   than income it means some changes will have to be made.

6. Make adjustments to expenses.
   If you have accurately identified and listed all of your expenses the
   ultimate goal would be to have your income and expense columns to be
   equal. This means all of your income is accounted for and budgeted for
   a specific expense.
   
   
   If you are in a situation where expenses are higher than
   income you should look at your variable expenses to find areas to cut.
   Since these expenses are typically essential it should be easy to shave
   a few dollars in a few areas to bring you closer to your income.

7. Review your budget monthly.
   It is important to review your budget on a regular basis to make sure
   you are staying on track. After the first month take a minute to sit
   down and compare the actual expenses versus what you had created in the
   budget. This will show you where you did well and where you may need to
   improve.