Download David Bach's "Debt-Free For Life" only today

I guess there are several websites where you can download David Bach's book for free. It is listed for a retail price of $9.99 but can be downloaded for free.

One of them is called WalletPop.com where David posted a blog entry on December 27, 2010.  Click here to go to that website: http://www.walletpop.com/david-bach

Be sure to come back and shop through my Amazon or Upromise links to do any online purchasing.   The following is the book that you can download only for 24 hours on January 5, 2011.

















To View All results with David Bach on Amazon.com click here: Search Amazon.com for David Bach

Your 2010 Financial To-Do List

This is courtesy of Morningstar posted to Yahoo! Finance.

It is a quick summary of what to do each month in 2010.  For example, the big thing for the month of January is to create a personal balance sheet which determines your net worth.  You will need to list all of your assets and liabilities.

Click here for the article and the complete list for 2010.

What I didn't know until I watched "The Card Game"

I previously announced this documentary in this post.

Couple of points I gleaned from watching the Frontline Documentary

• Banks use computer programs to clear the larger checks and debit charges (such as mortgages, car payments, student loan payments, etc) before the smaller charges.  This results in overdraft charges for each of the smaller checks or debits vs. a single large charge.  Sometimes this may result in 7, 8, or 9 overdraft fees in a single day for small amounts. A sample statement showed that each of these may be $35 (up to $280 in one day?).
• "PayDay" loan companies charge up to around 460 percent APR for their 2-week loans.
• Banks are not required to post the APR for overdraft fees because it falls outside of the "truth-in-lending act."
• The government and the financial industry agree that a "cap" cannot be placed on interest rates.  Doing so, would destroy the free-market system to decide how much risk a borrower would be.

Documentary on Credit Cards airing 11/24/09 at 9 PM

If anyone is interested in watching this potentially interesting documentary of the Credit Card industry, tune in to their local PBS station or on-line.  Click here for more information.

Classic Debt Restructure: This time by Donald Trump

I know Donald Trump is controversial, but he's doing what a lot of people are doing in this downturn. Effectively buying their debt at a discount and reorganizing.

Long ago (college days), I read about this company whose debt was being hammered to around 20 cents on the dollar (can't remember the exact value). This story also happened to be in Forbes magazine. All the ratings agencies and pundits were saying how it was going to go bankrupt. The administrative leadership ended up finding a financial backer and they ended up buying a significant portion of the debt in the open market. By the time the current bondholders realized this, it was too late. In the end, the company effectively reorganized their debt at a discount.

Now Donald Trump, his daughter and a bank have done the same thing with the Trump Entertainment Resorts which operates casinos in Atlantic City. The company has been in bankruptcy for the third time and Donald et al placed the winning bid of $100 million to buy it and take it out of bankruptcy.

It is listed as having $2.06 billion in assets and $1.74 billion in liabilities. Equity equals about $320 million. The deal in the end will shrink the $486 million. They ended up converting their debt for $0.279 on the dollar.

That'll make things easier on the cash flow.

Read more about the story by clicking here.

Leverage is a double-edge blade: Another story on Risk and Reward

This one is from Forbes Magazine. Still getting it for free. This story is about Louis Reijtenbagh, a Dutch cardiologist and investor who (sounds like) borrowed against everything. Sometimes he borrowed twice, using the same collateral.

Leverage (borrowing) is great when things are going great and it is properly used (on investments vs. lifestyle costs), but it also hurts when things go against you. Beware how you use this tool....

I love the paraphrase by Warren Buffet: "when the tide goes out you get to see who is not adequately covered by collateral..."

Click here for the article.

From Forbes.com: Stupid Debt Tricks

As previously stated, I'm still getting Forbes magazine for free. In the latest issue, there was an "Ideas and Opinions" look at what games states are playing to plug holes in their budgets. I found the same thing on the website. Here's a couple (see below for the link):

• How does California save $1.2 billion by changing the date on their salary checks from June 30 to July 1? It seems like it would be a one-time effect. It would catch up the following year (or so it seems).
• Michigan plans to charge a $250 license fee on strippers. It is important to note that this opinion reports that there are only 83 topless establishments. They may also take in California prisoners (where does that money come from? California?).
• New York will put ads on their garbage trucks and charge an 18 percent tax on sugary drinks.

Click here for more details.