Christian Finance Blog

Well…what do you know. I missed my flight for the second half of my business trip. I printed my boarding pass the night before like I always do and of course they changed the gate on me and I didn’t realize until it was too late. The flight actually left earlier than it was supposed to in the busiest airport in the country! So I have about five hours to spend in the airport. Fun! I can watch the Terminal or maybe I can write some articles for the blog while I’m waiting. After all, I had to pay $8 for wireless internet. It should really be free.

So here’s some free advice. Always double check your departure gates at the airport! I’m normally on top of things like that but I was too engrossed in my solitaire game on my iPod.

Sorry for the lack of updates recently. I’ve been on a business trip and the Internet is not quite as easy to find as most places. I’ll try to do some updates next week when I have better Internet access. I’m on the business trip until the 31st of October.

With all this consolidation and shrinking of competition in the banking industry comes huge corporations that are too big to provide any kind of customer service at all.

You would think that a bank as big as Bank of America would make it easy to open an account online. After all, I am trying to give them my money. I went online to open an account because there was a coupon code that I found that supposedly gives $100 for opening an account with no direct deposit requirements and $25 minimum deposit (WGSUOISI808, but YMMV - your mileage may vary). So I decided to open an account online.

First sign of trouble was a warning at the top of the screen saying that due to high volume, accounts were being processed 3-5 business later than usual. That seemed a little strange for one of the largest banks in the country. You would think that they would have the systems in place to be able to handle higher volume. But the opening process online went smoothly. I put in the code for the $100 and went off on my way.

Several days later, however, I receive an email from Bank of America stating that my online passcode was reset. That’s funny. I never even set up my online passcode. So I called the customer service number and after navigating the horrible phone tree which I could not get out of (it kept asking for my account number that I didn’t have), I finally spoke to a customer service rep. Well, guess what? He was a part of the east coast call center which apparently cannot handle west coast accounts. So after I was on hold for twenty minutes (for nothing), I was transferred to the west coast call center back in the same phone tree and on hold for another fifteen minutes before I spoke with someone else.

The CSR then asks for my account number again (which I don’t have). She verified my account with some other information. The nice lady on the other line listens to my problem and looks into it. She says that apparently when it says that the passcode was reset that it doesn’t mean it was reset. It means that my passcode was set up. Well, why didn’t it just say that my passcode was set up then? If you can’t tell, I’m a little annoyed at this point.

So she gives me my online ID and passcode over the phone (I’m not sure if they’re supposed to do this or not) and I’m able to login to my account. My advice to you: skip the hassle and the lack of customer service and stay away from Bank of America!

BofA, you can keep your $100. I don’t want it. It’s not worth it to open an account with you. Where has all the customer service gone? That’s why I opened a WaMu account way back when. Because at least they had a little hint of customer service. I hope it stays that way with the acquisition by JPMorgan Chase. The other “big” bank that had a little customer service was Wachovia, I mean, Citi Bank, err… Wells Fargo? I don’t know. Now I’m annoyed and confused.

Failing banks, government bailouts, corporate bankruptcies, huge buyouts. It must be the end of the world! Jesus is coming soon! We should all take our money and stuff it in our mattresses.

Just in case you couldn’t tell, I was being a little bit sarcastic. People everywhere seem to be panicking and thinking the end of the world is near. It is not the end of the world. Let me say that again. It is not the end of the world! Everything’s going to be just fine. Your money is safe.

You don’t need to pull any money out of any bank. The FDIC insurance (or the NCUA) will cover your deposits up to $100,000 or $200,000 for joint accounts. The FDIC covers savings and checking deposits as well as certificates of deposit. They also cover cashier’s checks, interest checks, and more. Check the FDIC website for more information.

Although the FDIC doesn’t cover money market accounts through brokerages, the US Treasury Department earlier this week established a temporary guaranty program for them. Lasting one year, the government will cover any principal in a money market account. You won’t be insured for any interest but you’re guaranteed not to lose any of your money that you put in.

I’m still working on moving everything to the new server at christianfinanceblog.com. I’m also working on a brand new design for the blog! Here’s a little preview of what’s to come:

Hope you like it! Let me know if you have any design ideas or suggestions. It’s just a mockup right now. I still have to do the coding for it. I’ll let you know when the blog’s ready to switch over to christianfinanceblog.com.

In the meantime, subscribe to the RSS feed and you’ll always be up to date on everything going on here including when it switches over.

Yes, that’s right! Christian Finance Blog is changing hosts! Currently the blog is hosted for free at Wordpress.com but I have secured some private hosting for the blog and will be moving to hosting directly on christianfinanceblog.com.

In the meantime, you can still access my blog at christianfinance.wordpress.com. The christianfinanceblog.com will likely not work while I get it set up to go. I’ll let you know when it’s ready to use again! Thanks for being faithful and loyal readers and stay tuned for more great stuff!

It’s August 8, 2008 today. That means it’s 08.08.08. Today marks the official start of the 2008 Beijing Olympics. It also happens to be one of the most popular wedding days this year (like 07.07.07 last year). And apparently the number 8 is considered good luck in the Chinese culture. Not only that, the number eight often means “new beginnings” biblically because the root word for eight is “put off” as in “putting off the old man”. This marks a new beginning as we are born again and start fresh. So if you’re struggling with some stuff, let today mark a new beginning in your life! God bless!

Bob from ChristianPF asked me and other personal finance bloggers to write a quick post on how to make $200 in 2 weeks. Check out what I had to say at ChristianPF! There are some great ideas to make some easy money in a short time.

It seems like foreclosures are everywhere. And it’s true. Even the rich and famous are facing foreclosure and abandoning their homes (not that I have any sympathy for the rich or famous losing their homes).

1. Jose Canseco

Former baseball player Jose Canseco reportedly abandoned his home in the spring. His 7,300 square foot Encino, California house had four bedrooms, and six baths. He bought it in 2006 for almost $2.8 million. It had an outstanding balance of over $3.3 million which includes back payments, fees, and penalties.

2. Ed McMahon

Former Tonight Show announcer Ed McMahon is behind about $644,000 on his 90210 home. The mortgage balance is approximately $4.8 million and is currently listed at $6.25 million. He has had no offers in two years. The home has six bedrooms and seven baths and he paid less than a million back in 2000.

3. Evander Holyfield

Former heavyweight champion Evander Holyfield has a 54,000 square-foot, 109-room, 17-bath mansion in Fayette County, Georgia. Holyfield defaulted on his mortgage (balance of $10 million) this spring and an auction was scheduled but has since been cancelled. He said that he is in no danger of losing his home and that he’s “just not liquid.” Holyfield must have found some cash because he is no longer in foreclosure.

4. Michael Jackson

Michael Jackson’s 3,000 acre estate in Los Olivos, California is valued at around $35 to $45 million. He owes more than $24 million on the mortgage and the loan was taken over by Colony Capital, LLC since Jackson left it in 2005.

5. Courtney Love

Singer Courtney Love purchased her home in Olympia, Washington in 1997 but stopped making the payment in 2003. It went into foreclosure in 2006. Her balance on the mortgage was $386,000 at the time. The house went to auction but it failed to sell and Love caught up her payments. She is still the owner of the house.

Source: CNN Money

FNBO Direct is putting on a Pay Yourself First online video contest with some nice cash prizes! I had heard about the contest a while back since I’m a customer of FNBO Direct and I wanted to put together a video. I kept putting it off until fellow blogger Jonathan at My Money Blog wrote about it and put up a video for the contest. This kind of sparked a fire inside me (I always love a little competition!) and I whipped up a quick video for the contest. Go ahead and watch and rate it!

[youtube=http://www.youtube.com/watch?v=wn6YhPPK0v4&hl=en]

http://www.youtube.com/watch?v=wn6YhPPK0v4

The odds of winning are really good since currently there are only 33 submitted videos and four of them are from FNBO so there are really only 29 submissions (including mine). That means almost everyone by default is winning $500! First 500 submissions get a $10 Amazon.com gift card. Top 20 videos win $500. Top five get up to $5000 in matched savings. Deadline is July 31st and unless everyone is just waiting to post their videos up before the deadline, I think you have a good chance of winning something. Let’s just hope they don’t cancel the contest for lack of participation.

FNBO Direct is currently paying 3.50% on their online savings account which is a very competitive rate right now. I currently have some money parked there. Here’s my full FNBO Direct review.

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The latest bank to “bite the dust” is IndyMac Bank in Pasadena, California. Earlier today, the FDIC took over the failed IndyMac Bank. This is already the fifth bank to fail this year alone compared to “only” three in 2007 and none in 2006 or 2005. This is also the second largest bank failure in U.S. history.

So what happens if your bank fails? Well, not a whole lot. The bank usually is taken over by the FDIC (Federal Deposit Insurance Corporation) or the NCUA (National Credit Union Administration) and an announcement is made (notices posted on doors, news information sent out). Usually, another bank will buy the assets (and liabilities) of the failed bank and the branch will be reopened as a branch of the new buyer. When there’s a buyer of the bank, checks will continue to clear, debit and ATM cards will continue to work. This is only applicable to the insured amount ($100,000 per depositor or $200,000 per joint account).

However, if there is no buyer, the checks, debit cards, and ATM cards will not work. Checks will be returned and stamped “bank closed.” Typically, the bank is closed on a Friday and by Monday, checks are mailed out for the insured deposits. You will have almost immediate access to your insured funds. However, any amount that exceeds the FDIC insured deposits becomes a creditor of the failed bank and you may or may not see the money after the assets are sold off by the FDIC. You may not see all of your money.

You likely won’t know that a bank’s about to fail until it has happened. That’s why it’s so important not to exceed the insurance limits at any one bank. So don’t keep more than $100,000 at any one bank. If you stay within the insured limits, you’ll have relatively quick access to your money.

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Source: MarketWatch, Bankrate

freedom: the power to determine action without restraint.

As we celebrate America’s birthday and independence, let this be a personal financial freedom day for you! We are so blessed in this country to be able to worship freely, have access to free education, and have the freedom to be as hard-working or as lazy as we want to be. We truly have “the power to determine action without restraint” in this country. All this because of the sacrifices of our military men and women past and present. Always remember to throw up a prayer for them today and every day.

In the same way the United States declared their independence from England, let this be your personal independence day from debt! Let this be the day that you decide to take a stand and get out of the dependence on debt. How do you do this?

Let’s take a look at the people of the British colonies. They were being taxed and levied by the English government and they didn’t like it. They got mad enough to declare their independence from Great Britain. Your situation is no different. The credit card companies are “taxing” you like crazy and ripping you off with high interest rates. It’s time to get mad. It’s time to start your own revolutionary war against debt!

So mark this day on your calendar as your own declaration of independence from debt and within a year or two you’ll look back and see how much progress you’ve made! I’ll be along for the ride to help as much as I can. I’m fighting the same battles you are. Keep reading and God bless! That’s enough history lessons for today!

Friday, July 11 is Cow Appreciation Day at Chick-fil-A nationwide. To celebrate, nearly 1,400 Chick-fil-A restaurants will offer a free Chick-fil-A meal to anyone fully dressed as a cow (includes an entree, side item, and a drink). For those who are partially dressed in cow attire will receive a free entree.

I say we all buy a cheap cow Halloween costume and hit up all the Chick-fil-A’s in the area! That would be fun!

The cow is the unofficial icon of the restaurant chain and has helped boost sales by over 500% since its introduction from $502 million in sales in 1995 to more than $2.64 billion in 2007! And by the way, the chain is Christian-owned and operated so go ahead and support! I always love supporting Christian companies. I mean, think about the corporate tithe Chick-fil-A would pay on $2.64 billion! That’s like $264 million! Yikes!

Source: QSR Magazine

Ok, not quite. But the Warren Buffet Credit Score post was linked by the On the Money blog with Carmen Wong Ulrich. I appreciate the link, Carmen! Make sure you check out her blog. Carmen is the author of Generation Debt.

Recently I said goodbye to an old friend. I’ve only known her for a few years, but they were a painful few years and I couldn’t wait to get rid of her. It was just something about her. She was always asking for money every month. I even paid her a little extra hoping she would go away. Finally I got fed up and said, “I don’t want you in my life anymore!” And so I paid her off just recently. What a relief! Her name was Car Debt.

My car is paid off and it sure does drive differently! I paid off my car loan in about two and a half years, rather than than the five years it was supposed to take! It just didn’t make any sense to have a whole bunch of cash laying around making 3% when my car loan was costing 6.5%. So I decided to use my cash, nearly deplete my emergency savings, and just pay the thing off. I figured with the car payment gone, I could rebuild my emergency fund pretty quickly. Best decision I’ve probably ever made.

I’m still on my quest to pay off debt. I plan on being completely debt free by the end of 2009! The only debt I have left is a credit card at 0% that will be paid off at the end of this year and those pesky student loans! Remember that “the borrower is slave to the lender”. King Solomon.

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