Friday, July 18, 2008

Save some Green: Do an Annual Interest Rate Checkup

After doing the great debate over whether I should trade in my 05 Mazda 6 for a more fuel efficient vehicle with 30+ MPG, (I currently average about 24MPG city, which is actually not too bad) I concluded that the added cost in insurance and car payments would negate any fuel savings achieved, and I'm better off just keeping it. We also have an 04 Jeep Liberty which averages 18MPG city (again, not bad for an SUV) and we'll be holding onto it for a little longer too.

However the car payments were becoming a little uncomfortable, given the rising cost of gas, and the interest rate I received when it was purchased was a tad high (7.5%). I've been working on paying down my existing credit card debt by utilizing zero percent or very low interest balance transfer offers when they come my way and have watched my FICO score soar as a result. So I contacted my credit union and inquired about refinancing my auto loan with them. I was able to obtain a a new loan at 5.25% saving me a considerable amount in interest charges!
Then I asked them to see what they could do with my HELOC loan... and because my score was now in the top tier, I was able to drop that rate by nearly 3%! I felt that was on a roll, so then I started calling my credit card companies.

I asked them what my current APR was and then asked them (politely) if there was anything they could do on the spot to lower it, or I'd be transferring the balances to one of my other cards. In almost every case (except CHASE), I was offered either a permanent lowered rate, (up to 5% lower on one card!) or their current promotional rate. After the promotion expires, just call back and ask them to lower it AGAIN -- the worst that can happen is they'll say no, and then you take your business elsewhere!

Sorry Chase, but your card won't be seeing the light of day until you become more consumer friendly! In the meantime, Citibank and American Express were more than happy to take business away from you, and they also offered me a great APR. See ya! Buh-bye.

By making just a few phone calls and being nice to the CSRs (Customer Service Rep), I was able to negotiate significant savings in interest payments on almost all of my loans and credit cards. Not too shabby for about an hour's worth of work! I now plan on doing this on at least an annual basis to keep my interest rates in check. Some folks may want to shoot for every six months if your scores are consistently improving...

Tuesday, July 8, 2008

Mileage Logger Update: 1357 Miles/ $685 in Payback in June

For the month of June, 2008 we logged 1357 business related miles, which comes to $685 in business mileage deductions! (Based on the 50.5 cents per mile allowance prior to 7/1/08) As of July 1, 2008 the IRS raised the mileage deduction for business to 58.5 cents per mile, so your savings are now even greater! Visit: http://www.mileagepayback.com/ and click any banner ad to learn more or to purchase your own Mileage Logger. As an added bonus, the device is tax deductible!

IRS Increases Bus. Mileage Deduction Rate to 58.5 cents/mile

Take advantage of the higher deduction rates and start logging your mileage AUTOMATICALLY! VISIT: http://www.mileagepayback.com


WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

"Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile," said IRS Commissioner Doug Shulman. "We want the reimbursement rate to be fair to taxpayers."

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

The new rates are contained in Announcement 2008-63 on the optional standard mileage rates.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

SOURCE: http://www.irs.gov/newsroom/article/0,,id=184163,00.html

Take advantage of the rate increase and start logging your business miles automatically!
VISIT: http://www.mileagepayback.com