When $6.95 isn't so Free!

I love to listen to sattelite radio. It is a great way to get caught up on the news on the way to the office. It is also a great way to listen to Prudent Money (Sirius) every Saturday morning at 10 am central. (sorry for the plug)

However, I don't like listening to the commercials. It seems that most of these commercials that are aired on Fox and CNBC tell you the lastest way to get rich. This latest and greatest program will give you financial freedom. It is fast and it is easy.

"I made $ 5,000 a month just working part-time. It was easy."

"I applied these techniques for buying and selling real estate and in a few short months was financially independent."

Now these ads are enticing. You desparately want to believe that they are true. I would love to believe that someone was going to plant a money tree in my backyard. However, that is probably not going to happen.

You decide to go ahead and order the book and tape because you have nothing to lose. IT IS FREE!! This is the best part. They are going to give you this tape and book.

However, there is a small shipping and handling charge.

So, I decided to call a few of these life changing program call centers to hear the sales pitch. I called two different call centers. Both of these call centers for two different programs said exactly the same thing and in the same order. Keep in mind, that they were supposedly two different gurus who had written two different books.

Here was the best part of the conversation - What is the shipping and handling? She replies, it is a small charge of $ 6.95. So, let me get this straight. I am going to pay them $ 6.95 for the free items that are worth $ 50?

Here is the real deal -

1) There is no magic solution that is going to make anyone rich over night. If so, everyone would be doing it.

2) Nothing is free

Finally and most important..... This is a heck of a method to sell product. It probably costs a 3 or 4 dollars to make and ship the product. After all of their advertizing is covered, they are probably making a pretty nice little mark-up on that product that they are giving to you for free.

In addition, the free book and tape probably ( this is pure speculation on my part) give you the opportunity to actually buy something from them.

When you hear this sort of thing, just know it is nothing more than a marketing gimic designed to conveniently put dollars in their pocket.

When Sales are Down - Just Put Christ back into Christmas

"We, quite frankly, have learned a lesson from last year," Linda Blakley, a Wal-Mart spokeswoman, told USA Today. "We're not afraid to use the term 'Merry Christmas.' We'll use it early, and we'll use it often."

Bill O'Reilly - November 2005 - "I am 100% convinced...that the policy of not advertising, using the words, "Merry Christmas: will hurt the bottom line of these stores. It will hurt their sales."

Is it just me, or is it just to convenient to not have a backbone and do whatever possible to save Christmas retail sales this year?

Wal-Mart has had a teribble year. They have had a tough time hitting sales forecasts. In fact, these are some of the worst sales numbers in 6 years. Last year, they thought it was a great idea to be non-religious specific and instruct their employees to not say Merry Christmas.

To begin with, it was a stupid idea to take this action. Regardless of your religious beliefs, Christmas is a national holiday event. They were very passionate about going this route. Now all of the sudden when sales are declining, Christ makes it back into the stores?

I hope that the rest of America sees this for what it is worth. A company that has no moral backbone. I would have much more respect for Wal-Mart if they had stuck to their guns and their original beliefs back in 2005. Now, they do whatever they have to make sure that sales come through the doors at Christmas. It is a sad representation of what is happening in America.

Maybe next year if sales are better, they can just instruct their employees to say

Merry X-Mas

The Irresponsible Mortage Industry

A recent advertisement read:

“Are you Paying to Much for Your Mortgage?”

Then they show how you can pay $ 1,698 for a $ 510,000 mortgage.

Most consumers don’t understand how mortgages work. In today’s cash crunched economy, consumers are nlooking for ways to reduce their expenses. There are also those who are buying into the real estate boom and attempting to buy more house than they can afford.

Well, there is a industry that claims to solve all of those problems. It is the Loan Shark Mortgage Industry. Since people don’t understand the ins and outs of mortgages, they go to the “professional” to get advice on mortgages. In reality, they walk into the sharks den and get sold a horrible product that will only make things worse in the future.

These companies are marketing these irresponsible mortgages and taking advantage of people who are in hopes of buying a house when they can’t afford it or people who are in cash flow trouble.

There are some good people in the mortgage business. Alice White is someone that I confidentally recommend for anyone who is need of a mortgage. The problem is that people like Alice are far and few between.

Keep this mind when thinking about a mortgage.

You don’t pay too much for a mortgage unless your interest rate is higher than the current market for interest rates is paying. Don’t fall for the “pick a payment” scheme