Archive for September, 2009

So you still have the 42-inch plasma TV that you bought at 0% interest in 2006 but didn’t pay off in time which means you’re now barely making the minimum payments at 23.99% and it’s hooked up to the sweet high-def signal from Comcast or DirectTV.  Unfortunately you’re probably paying for 400 channels of nothing, and forking over a c-note every month that could be better spent on paying off your bills.

If you are serious about getting out of debt, seriously consider leaving that high-price hi-def signal behind. There are other ways that you can get great movies and television on the cheap while getting the added benefit of watching shows on your own schedule.

Here are a couple of options to consider:

• Get a HD antenna. With a one-time investment of 30 bucks or more you can pull high-def signals of broadcast television right out of the air with no monthly fees. HD Antenna rigs are easy to hook up and you’ll have your national and local stations for free.
• Network TV websites. You can typically catch the latest episodes of your favorite shows directly from sites like ABC.com and NBC.com.  If you’ve got a nice big monitor hooked up to your computer, you’re already in business.
• Cable TV sites.  Need a news fix?  Check out CNN’s video service.
• Streaming video sites. My personal favorite is Hulu.com which has favorites like The Daily Show with Jon Stewart and Colbert Report ready to view the following day.  Another good site that let you watch videos on demand is Joost.com.   For comedy clips check out FunnyorDie.com
• Subscribe to Netflix.  Easily the 800 pound gorilla of the DVD rental game, with Netflix.com can build your list of movies and TV shows online, and get them delivered right to your door for only $8.99 a month.  It’s more convenient than your local video store, has a wider range of titles and you won’t get hit with late fees.  If you need an entertainment fix, pop in a DVD and you’ll always have a fresh stack when the mood strikes.
• Multi-task your video game console.  With services like XBox Live you can order movies and shows directly through the system that’s already hooked up to the nice TV of yours.

If you’re not willing to take the plunge and dump your cable or dish service, at least consider dropping the premium channels.  You may find that series and features from sites like the Discovery Network, A&E and Food Network can keep you well distracted from the bills of the day.

Got other entertainment tips for Debtbeats?  Leave us a comment.

Although banks have been backpedaling in recent weeks to avoid having new curbs put on their business practices, the Federal Reserve has moved today to enact new rules to protect consumers from unfair policies.  You may remember that back in May, President Obama signed into law the Credit Card Act, and these new rules represent part of the Fed’s implementation of that law.

One, these new rules would generally prohibit a rate rise in the first year after an account is opened, and also stop increases in rates that apply to an existing card balance. Two, they would also prohibit banks from issuing a card to anyone under 21 unless the he or she can prove their ability to make payments or has a co-signer with sufficient income.  Finally, these rules would also require a consumer’s consent before a bank could charge fees for transactions that exceed their credit limit

Other changes include a limit on fees linked to subprime cards for consumers with risky credit and a stop to “two-cycle” billing, which is when a credit card company raises your interest rate and charges the higher rate for a your previous borrowing.

The consumer debt revolt marches on, with the help from the Feds.  Considering that record levels of debt held by the American public right now, legislative curbs on what banks charge for fees and interest amounts to a significant borrower bailout that doesn’t cost the taxpayer a dime.  This is change we can believe in.

Just days after Bank of America and JPMorgan Chase announced more consumer-friendly policies on overdraft fees (and getting some rare props from this blog as a result) more banks have decided to be more fair to their clients where these charges are concerned.

Wells Fargo is going to discontinue assessing overdraft fees if client balances are less than $5 in the red, and the bank will also limit overdraft fees to four per business day.  Wells Fargo is the parent bank of Wachovia.  BB&T Corp is getting in on the action as well, with a policy similar to that of Wells Fargo taking effect on January 1, 2010.

It’s commonly perceived that these moves are intended to fend off any inclinations that Congress may have to regulate these fees.  No doubt any action taken to legally curb these fees would be more restrictive that what banks are doing to police themselves.  And it would be tough for any lawmaker to vote against what would be a very popular bill.