By Dutch Simmons

Exploit an illegal practice used by these stores and more.
Want to outsmart an illegal sales tactic and save boo coos of money on your next big screen television?

How about trimming hundreds of dollars off the price of a computer monitor, or a speaker system?

The consumer can make age-old sales tactics at Best Buy, Circuit City and Fry’s work in their favor. We can exploit an illegal practice still prevalent in schemes run by corrupt management practices.

It’s easy actually, and you can save hundreds of dollars on major purposes. I will now outline a proven method that works at most electronics stores.

First, allow me to explain the exploit. Salespeople at Best Buy and Circuit City do not make commission. Nothing. However, upper management oftentimes will receive perks on their bonus. One of the ways corporations reward management is the sale of extended warranties. It’s common to see in-store warranties yield as much as a 70% profit margin. Over-zealous supervisors apply the same pressure applied to them to their store’s line-level employees.

They feel pressure to meet quotas, not only for bonuses, but also for promotion in the company. Some managers harass workers not capturing enough ‘cheese’, a term used for the service plans that return such ludicrous profits to the store.

It makes management look good.

It’s a fatter bonus.

A major topic in board meetings.

It’s the make or break factor that seals that promotion.

It’s the equivalent of super-sized ‘value’ meals at fast food franchises. The worker at the window doesn’t make commission, and yet they always ask, “Super-size that?”. It’s corporate pressure that creates a “work force”. But we already know that, right?

And that’s when a remarkable, though little known, opportunity is presented to the consumer. I’ve personally skimmed $150 off the price of my last television, and most recently saved on my digital camcorder. This method works at many other places offering in-store insurance policies.

It’s not full proof, but a patient consumer can save bundles of cash.

When asked if you want the insurance, the five-year plan or the two-year plan, ask about the five-year. I know that can seem like the opposite of what we want to accomplish here, which is to save money. But when the electronics rep delivers his pitch on how fantastically thorough the five-year plan is, detailing the useless protections against this and that, tell him that sounds like the plan you need. Actually, go ahead and ask if there is an even longer, more expensive plan.

At this point, you’ll need to ask the price of such a fantastic plan, which turns out, is fantastically expensive. Here’s where we launch a counterattack of craftiness against this salesperson’s pitch. What he can’t do is lower the price of the store’s insurance policy. What he can do is lower the price of the television set. Yep. You read right. Salespeople can and will lower the price on inventory at places like Circuit City and Best Buy as long as it pleases management. This is called illegal bundling and it happens all the time. And yet the pressure of gaining ‘cheese’ from in-store warranties is great enough to trickle all the way down the standard operating platform. A supervisor is wide open to lowering the price of a product on one condition only. You get the extended warranty.

Well that’s nice, you say. But I don’t want the insurance, what about saving money?

Hopefully by this time you have talked either the rep or his supervisor into lowering the price substantially on the product itself. The bigger the service plan you want, the more ‘cheese’ for them, and the bigger the discount for you. When the rep wheels out your brand new big screen, they’ll carry out a carbon copy form. This is the insurance plan for you to fill out at the front desk. That’s right, not right then and there in front of the sales rep, but at the front desk, where a line of other customers stand.

We’re going to have a quick change of heart when we get to that cashier at that register. Simply tell the cashier handling your purchase, “You know, I think I’m going to hold off on the ten-year plan for now. Could I purchase it later if I decide to?” To which they’ll reply, “Of course. You have thirty days to change your mind.”

And there you have it: A major discount, should you suddenly change your mind about the warranty.

http://www.storyevent.com/outsmart-best-buy-circuit-city-save-hundreds-on-electronics

The idea of getting a home equity loan while interest rates are low to help you pay off your bills, buy a car, or even pay for your child’s education may seem like a great idea. However, you should educate yourself first so you know exactly what a home equity loan is and if it is really right for you.

The basic idea of a home equity loan is that you can borrow against the current equity in your home, so the more equity you have the larger home equity loan you can receive. In essence, to receive a home equity loan you are using your home as collateral, or the basis, for the home equity loan. If you do not pay the home equity loan back, then your home is at stake and may be foreclosed upon. This is sobering news many people are not aware of, so getting a home equity loan requires some thought and the ability to repay the home equity loan as well.

However, you might be reading this and actually interested in a home equity loan, but have no idea what equity is or if you have any. Equity is how much of your home you have paid for. So, you take the home’s current value and subtract it from the amount you still owe, and that is how much equity you have in your home and what will ultimately be used to approve or deny your home equity loan application. For example, your home is currently worth $400,000 and you have $280,000 left to pay on your mortgage. Your current equity is $120,000.

You will need to know all of this information before you apply for a home equity loan to know if you have enough equity to even apply for a home equity loan. Plus, the more you know about applying for and negotiating rates for a home equity loan the better deal you will receive. Remember, knowledge is power and the more home equity loan knowledge you have the more powerful you will be able to negotiate.

Article by: Jay Moncliff - Copyright © 2001- 2005 Present ArticleCity

If you find yourself continually worrying about debt — it’s time to seek out some solutions. Greg Pahl, co-author of “The Unofficial Guide to Beating Debt,” and Virginia Morris, co-author of “The Wall Street Journal Guide to Understanding Money & Investing,” offer these suggestions on consolidating your debt.

1. Credit card transfers. Rate surfing only makes sense if you can pay off your outstanding debt within the time frame of the low introductory rate. “By the time you do all the transferring, the introductory period is over,” Pahl says. “I get this stuff in the mail a lot. You really have to read it carefully. The change of a word or two can change the whole thrust of the promotion.”

To look for the credit cards with the lowest rates, use Bankrate.com’s credit card search engine.

2. Home equity loans. They’re inexpensive, relatively easy to obtain and they may offer a tax deduction for the interest portion of the loan. The downside is that the collateral for the loan is the house. “A home equity loan can be an extremely useful strategy if it’s used properly,” Pahl says, “but people need to have their eyes open and understand the implications.”

The other disadvantage is the low-pressure repayment terms. “Most lenders aren’t in a hurry for you to pay it back. The leisurely repayment schedule isn’t part of your goal,” he says. “Your new monthly payment should be at least as large as your previous monthly payments — if you want to really make progress. If you can pay more, you should, because you’ll pay it off faster.”

Bankrate.com’s home equity search engine lets you find the lowest rates for variable-rate home equity lines of credit and fixed-rate home equity loans.

3. Retirement funds. Most employers will allow loans from a 401(k) or other retirement plan, but this should only be used if you have no other choice. The interest is almost never tax-deductible, but you’re paying interest to yourself instead of a bank, Pahl says. If you can’t pay it back within five years, the IRS will assess taxes and penalties. Also, if you quit your job, your employer will call the loan in full when you leave. Accessing retirement funds does offer a way of lowering your payments and speeding up the debt repayment process.

4. Life insurance. If you have whole life insurance, you can borrow against its value. There’s no time limit and, Pahl says, “You don’t really have to pay it back at all. If you don’t pay it back, the amount of the loan is deducted from the benefits paid to your beneficiaries, so you probably want to pay it back.”

5. Family and friends. Financial advisers, Pahl included, are universal in their advice that personal loans are a great way to destroy a relationship. Still, he says, it’s an option. “If you’ve got a rich relative who offers to help you through a tight spot, maybe you should just be gracious about it. Just get it all in writing and make sure you pay them back.”

6. Your credit union. Credit unions generally have lower interest rates and fees on loans. If you’re not a member, check with your employer, family members or organizations of which you’re a member to see if you’re eligible to join one.

7. A nonprofit consumer credit counseling agency. Morris says this actually should be your first stop. Experts in helping consumers get out of debt, they work with creditors regularly to get late fees waived and interest rates reduced. “They’ve heard it all. Nothing you will tell them will shock them,” Morris says. “What they often will do is, rather than consolidating debt, you pay them a fixed amount and they pay it out to your creditors. It’s a kind of discipline that can be helpful. It’s enforcing a change in spending habits. For the person who is serious about getting out of debt, that’s a solution.”

8. Renegotiate the terms with your primary lender. “A mortgage lender would rather renegotiate than repossess your home,” Morris says. “They can say no, but you can go to them and say, ‘I know I’m behind. Can we stretch out the payments?’ It’s an upfront relationship. They do lose money if you default. Most lenders will renegotiate.”

Reassessing Your Home Mortgage Loan

Are you aware that on average Americans refinance their home mortgage loans about every four years? If you are in possession of your home for two years or more it is probably a good time to review your mortgage options. As the years go by, your financial needs and priorities may change and ideally your home loan should change to reflect your new requirements.

By educating yourself with the help of Mortgages-Magazine.com, you will have the information required to find the mortgage best suited for you and be in a position to negotiate for better terms with your lender. You could now be in the position to:

• Lower your monthly mortgage payments
• Pay off your mortgage loan earlier
• Do the renovation project you always wanted
• Use the money to purchase an investment property
• Restructure your debt commitments

Be Aware Of Costs Involved In Refinancing Your MortgageLoan Costs

Make sure you know all the costs associated with getting out of your current loan and entering into a new loan. These costs include penalties for breaking out of your current loan, origination fees, credit reports and legal fees, and if required, private mortgage insurance and extra life insurance premiums. Only when you have all the costs associated with refinancing your mortgage and the monthly payment savings will you know whether it’s worth your while to go ahead with the new loan.

Be aware of all the costs associated with the early discharge of your loan. Prepayment penalties could be in the thousands. It depends on how long you had the loan and the percentage of the loan balance outstanding that has to be paid in the event of any early discharge.

Frequent RepaymentsPaying your loan installments more frequently than on a monthly basis can generate interest expense savings for you by shortening the duration of the loan. Most lenders will allow bi-monthly or weekly repayments. The effect of more frequent payments is to progressively reduce the loan principal each time a repayment is made, thereby lowering the interest accruing each month.

Consolidating Your Debt

Substantial savings could be had by consolidating all your debt. The days of having a home loan, a personal loan, a car loan, a savings account, a cheque account and outstanding balance on credit cards are becoming a thing of the past. Financially, it makes more sense to consolidate all your loans. Home loan rates are significantly lower than those for personal loans, overdrafts and especially credit cards, but significantly higher than savings and cheque account rates. In the end, it makes sense to consolidate everything into your home loan account.

People who sleep on their stomachs have lower night time blood pressure than people who sleep in other positions, according to research from Japan.

Yasuharu Tabara of Ehime University School of Medicine in Ehime, Japan, noted that high blood pressure during the night can increase the risk of a night time heart attack, reports Patient Health International.

“These findings indicate that sleeping position could influence blood pressure,” the researchers said. “Marked change in blood pressure during sleep by turning the position may need to be further studied as a possible cause of the cardiovascular events during the sleep.”