Money Blue Book

An Updated List Of the Best Student Credit Card Offers Provided Below

It’s remarkable how much the Internet has changed how we manage our finances today, and the sheer amount of information and knowledge it affords us. With a few keystrokes, we are now able to instantly access a wealth of reviews and consumer opinion pieces to better educate ourselves on the workings of all financial products and services. One of the best things to grow out of it is that it’s also helped college and university students to become better informed and educated consumers when it comes to dealing with credit cards and the credit application process.

Don’t Succumb To Bad Credit Card Offers Just Because Someone Is Giving Away Free Stuff To College Students

Back during my early student years as a college freshman, the Internet was only just getting popular, and many things were still being done the old fashioned way. At the time, my first encounter with credit card temptation was at one of those free credit card promotion booths on campus. I remember walking past the campus student union one day and noticing an attractive girl standing behind a fold out table adorned with a large promotional banner and colorful balloons. On the table was all sorts of prizes – everything from free T-shirts, free Frisbees, cheap alarm clocks, to free squishy ball stress reliever “thingys”. Naturally, as a bright eyed and bushy tailed (not to mentioned gullible) young college student, I was ready at a moment’s notice to sell my credit card soul and credit score worth for a white 100% cotton, size “L” T-shirt with some credit card promo logo emblazoned on it. For the opportunity to get an instant freebie, I innocently filled out a paper credit card application form on the spur of the moment with my real Social Security Number (yes I know, I was stupid) and real name and address. In exchange, I got my free T-shirt which ultimately was only worn a few times before I got tired of walking around looking like a Visa credit card advertisement billboard. You might want to slap me on the forehead for being so naive back then, but at least I didn’t fork over my credit card livelihood for something as silly as a 6 inch long veggie sub sandwich. Compared to the girl who filled out a credit card application in response to a free food offer from Subway (U.S. News article) that she simply couldn’t refuse, I look like a genius.

Today, while armies of credit card promotional booths and credit card branded freebies still invade college and university campuses across the United States, the popularity of the Internet is helping to better educate young college and even graduate students about the ins and outs of credit card usage and the wisdom of proper debt management. Back before the Internet, if you didn’t seize the opportunity to apply for a particular credit card when the application form was presented to you on campus, you risked missing out on the chance to apply for it later. Pamphlets and flyers you took away from the promotional booths frequently got lost or ended up discarded in the trash can. Credit card companies simply do a terrible job of properly associating credit card applications with sufficient credit card education material. That’s why for your own sake as a savvy college or graduate student, if you encounter one of those promo booths on campus, you should resist the free money or free product temptation, and do your online credit card home work first before applying for any offer.

College Students Should Do Their Research At Home And Get Educated Before Applying For A Student Credit Card

At home or at work, there’s less pressure to make a rash or uninformed decision, particularly when you’re sitting in front of the computer with all that wealth of information before you. Based on my past experience as a credit card carrying college student and also based on my current experience today as a working adult who has mastered the art of carrying around more than one reward credit card, I highly advise all college and graduate students considering student credit cards to thoroughly read through all terms and conditions at home and make their application decisions there. One should never give away confidential financial information or sign up for something as important as a credit card offer by filling out a paper application from some random person on the street or school campus. It’s best to research from home, and be patient and thorough as you comparison shop through all credit card offers – there’s really no rush. The only one who’s in a rush is the credit card company – they want your business. It’s okay to make them wait.

Unlike some, I was very fortunate to not end up saddled with out of control unpaid credit card debt. I attribute that favorable outcome to my experience and exposure to credit card usage while I was still a young student. Through trial, error, and self motivated education as a student, I familiarized myself with all the conditions and terminology of credit card use such as annual percentage rate (APR), 0% balance transfers, and payment grace periods. At an early age I learned how to manage my credit card personal finance, practiced how to handle monthly payments on time and learned to avoid finance charges and late payment fees. I firmly believe that exposure to credit cards at an early age under the guidance of parents is the key to future credit use maturity. Avoidance and lack of exposure may help avoid potential credit card debt problems early on, but this lack of opportunity to become educated about the use and risk of credit cards at a younger age when mistakes are less critical can potentially result in bigger credit card debt problems down the road.

Furthermore, taking advantage of student credit card offers while the student is still in college is the ideal way to build credit history at an early age, and help the student become more pro-active rather than reactive when it comes to finances. Waiting until graduation when student credit card options are no longer available may make it more difficult for the credit history-less grad to secure loans, mortgages, or even apply for ordinary consumer credit cards where higher income limits are required. Also, an important and key component of the FICO credit score is the overall age of credit accounts. Thus, the earlier the account is opened and the older it is the better.

Students Need To Understand That While Student Credit Cards Offer Convenient Reward Perks, The Dangers Of Irresponsible Credit Card Use and The Risks Of Debt Mismanagement Are Very Real

One of the most important reasons why college students ought to apply for a student credit card earlier than later is to have a viable means of independently handling unexpected expenses without having to call parents for help every time. College students frequently live far away from home and sometimes there isn’t always time for parents to transfer money to their college teen in time. Having a credit card at one’s disposal, even if one still uses cash to make the vast majority of purchases is a useful emergency net tool to have. At the very least the student is building a credit history and learning to be independent and self accountable.

Of course, even the relative simplicity of student credit cards may not be suited for every individual. Before applying for a credit card, students need to understand how financially responsible they are. Students who have previously and responsibly borrowed from their parents and paid the loan back, or have shown that they are able to follow a budget and keep track of their spending may be ready to handle the adult responsibility of using a credit card. On the flip side, students who only want a credit card so they have easy access to free money that they can use for frivolous and impulsive buying should avoid credit cards altogether until their college senior year or perhaps or until they’ve graduated, to avoid the dangers of credit card debt.

For college and graduate students looking to apply for a student credit card or even an ordinary consumer credit card offer, there are certain card features and usage risks they must be very mindful of. While being able to take advantage of cash back credit card rewards, purchase rebates, and being able to handle large emergency expenses on one’s own are some of the great benefits to owning a credit card, the reality is that there are serious risks and dangers as well. Be careful of the addictive nature of credit cards and marketing campaigns. Don’t apply for a card simply because the program is willing to throw you a one time savings of a few dollars. Think of why you intend to use this particular card offer for the long term.

Inexperience and failure to properly manage one’s spending budget and make timely payments in full are a few of the risks. The temptation to use plastic free money is great, particular for college students who often have a spend first, regret later mentality. Students must learn to pay off the entire monthly balance in full every month. Interest fees can be high and it’s imperative that students learn how to avoid them at all cost. I highly recommend that new student credit card users learn to manage their credit card finances using online account management and automatic debit payment techniques. They’ve worked reliably for me over the years.

While some advise against using credit cards to pay off student tuition, I only advise against it if the student is paying for the tuition from his or her own pocket without the financial assistance of parents. Tuition payments tend to be high and without adequate parental promise of help, it’s all too easy for the student to spiral into uncontrolled credit card debt. But if the parents are actively helping with tuition payments, using a student credit card to make tuition payments may help the student learn more about the risks and benefits of credit card rebate rewards.

Why College Students Should Apply For A Student Credit Card Instead Of An Ordinary Consumer Card Offer

Student credit cards are specially suited for college and graduate students because they often have lower credit limits to help cardholders better curb and manage their spending habits, and they usually don’t demand co-signer requirements for applicants with no credit histories. They also don’t impose specific income requirements, which is important for students since they usually don’t have much income to speak of. As long as they can prove they are a full time or part time college or graduate school student, they will get the card. Student credit cards are most beneficial during those key college and graduate school years when high credit limits are not as needed, but easy means to generate credit history are sought after.

Some may have questions as to what happens to the student credit card offer once the cardholder graduates from college or graduate school. While most student credit card issuers don’t instantly require all cardholders to give up their student credit cards immediately after graduation or once they’ve lost their student status, cardholders will usually continue to be constrained by student credit card limitations (such as much lower credit limits). Most card issuers offer customers the ability to convert the student card into an ordinary “grown up” card program upon request, but sometimes, the student rewards are uniquely worth keeping. I personally have the Citibank mtVU card that I applied for as a graduate student. While I’m no longer a student anymore, I still keep the card around as-is to take advantage of the lucrative 5% purchase rebate for restaurant related expenses. It’s the best of its kind for earning dining out rewards.

After reviewing and evaluating all of the top credit cards for students available, here are the student credit cards I believe are the most appropriate for the novice applicant. They all offer the best deals in terms of airline travel miles, cash back rewards, gas credit card rebate savings, and interest rate terms suitable for student purposes. Check out the following rankings.

List Of The Best Student Credit Card Rewards and Offers:

1. Discover Student Card – Earn 5% Cashback Bonus®* in categories that change like travel, department stores, gas, groceries, restaurants, and more means extra money for you, and extra toppings for your pizza.  Up to 1% unlimited Cashback Bonus on everything else you buy – from textbooks to toothpaste, automatically.  There is also a 6 month 0% introductory APR offer on all purchases.
2. Citi Forward Student Card -  Get 5% back (5 Thank You reward points for every $1 spent) on books, movies, music, and at restaurants. Earn 1 reward point for every $1 you spend on everything else. Special Offer: New card members get up to 8,500 bonus points after you sign up for paperless statements and make $250 in purchases within the first 3 months of account opening.
3. Citi mtvU Platinum Visa for Students – Earn 5 Thank You points for purchases made at restaurants, coffee shops, bookstores, music stores, movie theaters, and video rentals. Get 1 Thank You point for everything else (essentially up to 5% back on your credit card purchases). If you qualify, there is also a 7 month 0% APR introductory period for all purchases. This is my favorite student credit card and one of my most actively used card choice.
4. Discover Open Road Card For Students – Earn a Double Cashback Bonus® at any gas station and any restaurant (yes, even on those infamous 1 AM burritos.). Up to 1% unlimited Cashback Bonus on everything else you buy along the way, automatically. The cash rewards will never expire and there is no limit to the amount you can earn. There is also a 0% APR purchase offer for 6 months.
5. Capital One No Hassle Cash Rewards For Students – Earn 1% cash back on all purchases with no purchase category limitation, plus an annual bonus of 25% on the cash back rewards you earn for the year. There is no limit to the amount of cash back money you can earn and your earnings never expire.

These days, nothing lasts forever. Unless the item in question is one of those seemingly indestructible NASA Mars Rovers that are still chugging along the Martian surface despite having already greatly exceeded their original lifespan – or if the item is a substance or product that doesn’t have any oscillating mechanical moving parts such as a compact disk or a gold bar, the item is bound to break down, corrode, or malfunction eventually. Despite the millions of dollars spent on improving the quality and lifespan of products, it seems all mechanical devices are destined to break down inevitably, and oftentimes when you are least prepared.

As discussed in a recent post, out of nowhere I recently experienced a vehicle breakdown in the middle of the night. While I was waiting in my car with the engine still running the motor suddenly stalled, and all dashboard controls and indicator lights stopped working. Turning the ignition key was met with cricket chirping silence, and even the electronic door lock stopped responding to my unlock button pressing, causing me to worry momentarily. At the time I grew concerned as I wasn’t sure how I was going to get out of the vehicle without a working or functional electronic door lock. Then I laughed and realized I could manually pull up the door lock tab to open the door that way and use the metal key to manually lock the car door again. It’s funny how I’ve grown so dependent to using the key less lock clicker that I’ve almost forgotten how to lock and unlock the car door manually.

Well, after taking the car to the repair shop, I found out that the engine alternator had broken down and that the car battery also needed replacement. I don’t know about you but all of the cars I’ve owned in the past and present seem to enjoy eating alternators for breakfast. Not sure why that is the case. Such types of vehicle breakdowns alarm me because you never know when they may happen. It’s one thing to have a vehicle malfunction close to home, but it’s a whole different matter to break down somewhere far away on a major highway during a heavy rain or snow storm for example.

While cars, trucks, and vans are made up of a thousands of small to large electronic and mechanical components, there are probably only a handful of critical parts that have the potential to make or break your vehicle’s performance immediately and completely. Components like your break disc and break pads get worn down naturally over time through continuous use and need to be replaced regularly, but worn break pads are rarely critical to your car’s immediate performance. Having thin pads won’t cripple your vehicle or cause it to immediately stall, forcing it to shut down in the middle of the road. Along the same lines, proper engine oil changes are important to ensure the proper lubrication of your engine performance, but even timely oil changes aren’t critical. While lack of regular oil changes have the potential to cause excessive wear to your engine over time and ultimately lead to mechanical problems down the road, failure to get one won’t immediately prevent your car from starting or driving. Those types of less imperative maintenance concerns are more long term and cumulative effect issues.

However, there are certain very important car components that drivers must keep their eyes on. These critical engine and vehicle components have the potential to force your car to a complete stop if you’re not careful with proper repair and replacement. It’s important to know what they are to ensure they are properly maintained and checked during regularly scheduled maintenance. Some of these critical vehicle breakdown problems can be prevented, while others are somewhat inevitable in the long term – but it’s still important to know what they are to better plan for and anticipate their future occurrence.

Here Are The Top 5 Most Common and Likely Causes Of Crippling Vehicle Breakdowns:

1) Broken or Blown Alternator – You know you likely have a broken alternator when your car suddenly powers down when it is idling or when you are unable to elicit any response out of your car. By then, your battery will likely have drained itself of all electrical power and everything in your car that requires electricity to operate will have ceased to function – including car radio, wind shield wipers, indicator lights, and even your key less entry system.

The alternator is a tiny but vital component found under the hood of your vehicle’s engine compartment. Its primary function is to produce alternating current for the majority of your vehicle’s electrical systems, and to keep the batteries full. While your car battery provides some needed electrical power, without a means to re-charge it, total reliance on the battery alone will drain it in a matter of minutes. To prevent this from happening, vehicles need a functional alternator to continuously convert your engine’s mechanical energy into electrical energy to keep the battery recharged so that continuous electrical power can be supplied to your car. Frequently, vehicles can keep running even with a blown alternator by drawing electrical power directly from the battery until it’s completely sapped and depleted. However, continuing to drive on the street or highway with a broken alternator is extremely dangerous and should be avoided at all cost. You may be able to use jumper cables to give the battery a quick temporary charge, but with a faulty alternator, your car will only be able to travel for a short and unpredictable distance before cutting out completely.

For most ordinary folks, there is little that we can do to maintain the component ourselves, other than to use our eyes, ears and gut feeling to detect the signs that may suggest a dying alternator. Keep an eye out for weakening electrical components or dimming indicator lights when the engine is idling. If your headlights or internal indicator lights start to fade or flicker, you may have a faulty alternative on its last legs. If your windshield wipers or car engine seem to be sluggish or underpowered, your alternator may be breaking down. Don’t be like me and wait until it’s too late before getting it replaced. Two times in the past I ignored the warnings signs of a possibly faulty alternator and twice I ended up with a sudden vehicle breakdown. It’s best to get the damaged alternator repaired or replaced at the time of your choosing than to experience a sudden malfunction out of nowhere.

2) Damaged or Worn Car Battery – Don’t you hate it when you hop into your driver’s seat, turn the ignition switch and hear only a whirling sound but no engine startup. Along with a broken alternator, this is one of the most common reasons why your car is unable to start up or run properly, but it’s also one of the easiest problems to fix and patch up. If such an occurrence happens, chances are your battery has either died or lost its ability to retain a charge. Car batteries can lose their electrical charge for a variety of reasons and one of them is simply old age. Depending on your type of vehicle, your battery will have to be replaced a few times throughout its working lifespan. But there are other reasons why they run out of juice as well. If you’re the type who drives very rarely and only for very short distances at low speeds, your battery may have trouble keeping itself charged due to your sporadic driving habit. The recommended solution is to run long distance errands to give it the routine opportunity to properly regenerate itself.

Brand new and perfectly normal batteries should be able to retain a strong charge that will allow the vehicle to start up easily. It requires a lot more electrical power to start up a car than it is to keep it running. If you’re noticing that it’s taking a few turns of your ignition switch to start up your engine, your battery may be losing its potency. It could the one of the battery terminals, or perhaps one of the clamp connections are corroded. Either way, if you’re a do-it-yourself type of person, replacing your car battery can be done on your own (assuming you can handle the weight of the battery itself – anywhere from 15-35 lbs). A brand new car battery only costs between $50-$75 and is fairly straight forward to install, at least according to my self-proclaimed vehicle expert brother. I’ve never done it myself but I’ve heard that car batteries are not all that difficult to remove and latch back on.

I also recommend that all drivers carry a spare set of jumper cables in their trunk. Jumper cables are really cheap – only something like $5.00 on eBay. If you don’t want to use eBay, your local Walmart or Target should have a cheap set for around $15. Don’t bother paying for quality as they are all the same. With your own set of jumper cables, anytime your battery runs out of juice, any working car can supply a temporary electrical charge to get your car battery going again.

3) Broken Starter Motor – For most people, a broken starter motor problem is easily confused with a battery or even an alternator problem. Here’s how you can tell the difference: If your headlights or dashboard indicator lights are running strong without flicker, the radio is still working perfectly, your air condition is still operating fine, and your key-less locking mechanism still functions, and yet you are still unable to start your vehicle, it is likely a starter motor problem. When you turn your ignition switch and all you hear is a continuous whirling sound despite your electrical components working normally, your starter’s likely damaged or busted. With a failed starter motor, your car won’t be able to start. Like the alternator, it’s hard for ordinary people to really prevent the starter motor from breaking down over time. Your best solution is to have the starter regularly inspected in a repair shop for signs it may need replacing.

4) Flat Tire – When you have a flat tire, your car is pretty much un-drivable, unless you are crazy and don’t mind grinding up sparks along the pavement on your wheels and rims alone. Even slapping on a temporary spare can only get you so far. Your goal should be to keep your primary vehicle tires well inflated and maintained. Getting a flat tire is a common problem for those who drive frequently or those who travel on difficult terrain such as unpaved roads, rocky surfaces, or over pot holes. All of those bumps, stray pebbles, and jagged metal plate coverings on road surfaces take a cumulative and aggregate tole on the material integrity of your tires.

Every few months you should use your trusty air pressure gauge and run a quick check of the air pressure level of each tire to make sure each one is properly inflated. Keep in mind that the front and rear tires often require different PSI (pounds per square inch) levels. Your vehicle owner’s manual should indicate the exact tire pressures needed for your front and back tires. Under-inflated tires are one of the biggest causes of tire wear and tear because the weight of your vehicle bears down on them in a malformed way they weren’t fully designed to handle. While tire inflation tends to rise and fall with the temperature (becoming more inflated in hot weather and sagged during cold), if your tires are perpetually losing air pressure over time, you may have a serious problem. There could be a tire puncture wound from a sharp rock or nail, or the tires may simply be too old. Keep in mind that even seldom used tires that are kept out in the open air under the rain and snow still gradually lose their strength and durability over time. Replace them when they are worn and don’t keep using them when the tire treads are visibly cracked or distressed. You don’t want to ever experience a catastrophic tire blow out when you’re driving at high speeds. That’s how accidents and even car rollovers happen.

5) Running Out Of Gas – Unless you are lucky enough to drive one of those new electrical, ethanol, hydrogen, or even one of those tasty and nice smelling vegetable oil powered vehicles (yes, they exist!), chances are your vehicle consumes gasoline to power itself. Without gas, your oil-powered car or truck won’t be able to run. Avoiding the problem of running out of gas should be a piece of cake if you exercise common sense. If your fuel indicator light ever comes on, you likely only have a single gallon of emergency backup gas left in the tank. At that point, don’t risk driving away from the nearest filling station in search of lower gas prices when your fuel tank is running low. Get that car fueled up sooner than later and don’t take your chances on the road. I know gas prices are high, but there are ways to deal with that hurdle more responsibly (such as purchasing gasoline using gas rebate credit cards to earn cash back rewards). Don’t force yourself to end up having to walk to the nearest gas station like some highway vagrant and lug back gas in a heavy red rubber container. It’s inconvenient and dangerous.

Well it was bound to happen and it finally did. My trusty 2004 silver Honda Accord that I purchased brand new during graduate school finally died on me. I think there are several valuable lessons to be learned here, and one of them is that nothing lasts forever. Particularly if it’s a man made machine with moving parts susceptible to corrosion and wear and tear, the mechanical device is bound to break down sooner or later. No matter how reliable the vehicle brand, the quality of the materials or products used, or even how skilled the engineers that built the cars are, the fact of the matter is that cars, like all that is based on technology, inevitably wear down. But despite this inevitability, I’m still rather surprised that my car broke down so early on in its lifespan. My Honda Accord was only a 2004 model, with just 60,000 miles on it – the vast majority of the mileage accumulated through long distance interstate highway driving. I don’t use it to commute to work so it’s not like it was subjected to the rigors of stop and go driving, or exposed to the frequent acceleration and breaking style driving of bumper to bumper traffic. That’s why I was so shocked when my car suddenly broke down this weekend.

Responding To A Sudden Car Breakdown and Engine Stoppage In the Middle Of The Night

For the last few days my car sounded sluggish and felt a tad underpowered whenever I stepped on the gas pedal, but I didn’t pay it too much attention. I brushed it off as just some quirky engine performance issue – nothing to worry about, or so I thought. This weekend, while I was about 30 miles away from home, my car suddenly stopped running – the engine simply wouldn’t start. At the time it happened I was waiting for my friend at a church parking lot with my car engine running when all of a sudden the engine stalled, much to my surprise and dismay. I futilely turned the engine key to get the engine started again but there was no response. The car radio dashboard lights flickered on and off a few times then went black with one last struggling gasp into darkness. Immediately my heart sank as I realized what had happened. The busted culprit – a broken alternator.

The same mechanical problem issue happened during my old college days with my old Toyota Corolla. Both times my engine was running normally when it suddenly shut down inexplicably for no apparent reason. Both times the cause of the system shut down was a blown alternator. The alternator is an engine component that converts fuel powered mechanical piston energy into electrical energy. It is the device that ensures that your car battery is continuously re-juiced and has sufficient power to keep your car running smoothly at all times. Without a proper and functional alternator to keep recharging the car battery while the car is in motion, electrical power would be drawn directly from the battery until it was completely sapped, at which point the car would immediately cease to operate.

Even though I could use my jumper cables hooked to my friend’s engine to temporarily recharge my car battery to get it running again, the momentary charge would only be temporary. Relying on electricity drawn directly off my car battery without the benefit of continuous recharging by a working alternator, my vehicle would probably only be able to function for a few minutes before powering down. Driving on the open road at that point, even for a few minutes, could be exceedingly dangerous as it was unpredictable when the car engine would suddenly cease to function after the temporary charge.

Unfortunately at the time of my sudden engine breakdown, it was close to midnight – around 11 p.m. on a Saturday night, and it was pretty dark out. Tackling this unexpected and immediate transportation problem was going to be a major hassle, both personally and financially. It had been a while since my car had last broken down so I had to recall how to calmly respond to this dilemma. Thankfully for the moment at least however, my car was safe in the church parking lot, as it was situated in a proper parking spot with the engine running when it suddenly shut down. At least there was no danger of the vehicle’s presence interfering with the flow of traffic or face immediate need to be towed to some other location. For the immediate future, I could leave my car parked where it was. Thankfully yet again, the night temperature was fairly warm and there was no danger of thunderstorms, rain, or anything that could hamper my recovery effort.

Since my car was in no immediate danger, the next step was to decide how to get the vehicle to the repair shop to get fixed. I had to find a way to get it towed to a nearby service center. Being unfamiliar with the immediate area I was in at the time and skeptical of random mom and pop repair shops, I decided I had to get it towed to a Honda car dealership, preferably one near my home. There was a Honda dealership and auto repair shop only a few miles away from where I was at the time, but who knows how long it could take the dealership to get the requisite auto parts and fix my vehicle. For convenience sake, I needed my car brought to a repair location closer to home that was also public transportation or Metro subway accessible.

Another problem was finding a reliable tow truck driver on the spur of the moment. I didn’t have auto service membership through AAA or anything like that so I needed to find my own tow truck provider. I decided to dial 411 for general information and locate the local non-emergency phone line for the county police. After speaking to the county police over the phone, I secured the phone number for a recommended local tow truck company. Unfortunately, after calling up and speaking to the towing company, I learned that almost all local Honda dealerships chain up their front lots at night, preventing broken down cars that need repairs from entering their service parking lots. Until the morning at least, my car would have to remain at its present safe location. Fortunately at least, I wouldn’t have to pay any immediate impounding fees or towing charges to get my dead in the water car off the road, or anything like that.

My Dealer Service Shop Experience and The Pain Of Paying Inflated Rip Off Prices For Car Repair

So the next morning I returned to my car and called the tow truck driver to show up with his flatbed and tow my broken car 35 miles back to my neighborhood Honda dealership. The price for towing certainly wasn’t cheap. The cost for towing was a combination of $65 right off the bat for the initial vehicle hook up, and $2 for each mile driven. The final cost of towing came out to be $140. As much as I hate tow trucks in general, this particular driver was friendly and helpful. It certainly helped the trucker’s credibility by the fact that his company was recommended by the county police and it also accepted credit card payments, as all reputable merchants should. In the past, I’ve encountered shady tow truckers that demanded cash payments only, even driving me to an ATM one time so I could withdraw the appropriate amount of cash for payment. This time, I felt slightly ripped off for having to pay so much, but considering the towing distance traveled and the rising cost of gasoline, it seemed somewhat reasonable.

However, after leaving my car with the Honda dealership for service evaluation and cost estimation, the rip off pricing began. I received a call the next day from the Honda dealership telling me that after looking under the hood, it was determined that I needed a new replacement alternator and car battery (as I had earlier surmised). The total cost for parts and labor – about $1,200 (almost as bad as the $1,000 speeding ticket I received nearly a year ago). I nearly fell out of my chair in disbelief when I heard the projected price quote. I had run my own Google search earlier to educate myself on auto part pricing, and my estimation for the price of a brand new factory alternator came out to around $200 – $300 at the maximum. The dealership was charging me a ridiculous $800 alone for what the service agent referred to as “a very expensive part”. As for a typical car battery, a brand new car battery usually costs less than $75. For the cost of a new battery, the dealer was basically charging me more than double the normal retail price. Obviously I expressed my great displeasure at what I regarded as outrageously inflated rip off prices, but what could I do? I wasn’t a car mechanic, I didn’t have personal or referral connections with any reliable affordable car repair shops, nor did I know where else to get my car repaired reliably. Besides, having already spent $140 just for the towing alone, I wasn’t too keen on paying another $100 or so to tow it somewhere else while I shopped around for better prices. So against my better frugal judgment, I grudgingly gave my consent, grumbling all the way.

Unfortunately, car repair shops are one of the greatest money making schemes around. The dealerships aren’t exactly running scams because they usually do perform decent work, but the prices they get away with charging are completely outrageous. Dealerships receive a lot of service repair business because people such as myself tend to be leery about trusting unknown places for their car maintenance and service work. Because people who bring their broken down cars in for repair are often helpless folks like me, dealerships can and frequently do take great advantage of such desperation by charging like crazy for nearly every auto repair service and imposing greatly inflated prices for parts. If I had a cheaper alternative, I would certainly have taken it, but I didn’t have another backup option. Because the alternator is a key component necessary for car performance, I ruled out the idea of getting the spare part from a local auto junk yard like I did with the auto glass repair of my previous vehicle.

A Few Things I Learned From My Car Break Down, Towing, and Auto Repair Experience:

1. While I was somewhat upset at my car alternator suddenly dying on me, I’m extremely thankful that the component stopped working while the vehicle was situated in a parking lot, instead of somewhere along a busy highway during a heavy rainstorm or even during a snow storm in the middle of nowhere.
2. After speaking to the tow truck driver, I learned that it’s not always necessary that the driver of a vehicle show up to authorize the vehicle be towed to the dealer repair shop of his or her choice. Apparently, I could have simply phoned in the towing order and had my broken down vehicle towed to the requested dealership without the need to be actually present. Reputable car dealerships will usually gladly pre-pay tow truck drivers for bringing in broken down vehicles for repair as they get the opportunity to get a new customer like myself from whom they can rip off/make money off of. The pre-paid towing fee is usually recouped later on by tacking it onto the final service repair bill. Of course, the one downside of not being available to open the car door with your key is that instead of allowing the car to gently roll onto the tow truck ramp in neutral drive shift, the tow trucker will have to forcibly drag your parking braked car up the ramp with the towing crane.
3. I need to find a reputable tow truck company in areas that I frequent. You never know when you’ll need a tow truck to pull you out of a jam. However, it’s important to beware and watch out for shady tow truck companies that refuse to accept credit card payment. They tend to be less trustworthy and prone to charging randomly assigned towing rates.
4. I should seriously consider signing up for American Automobile Association (AAA) membership, at the very least for the peace of mind road side assistance they offer. The $50 charge for annual AAA membership to cover the cost of travel discount benefits and road side assistance protection is easily worth the price paid. If I can waste money on cable TV that I barely use, surely I can spare a few dollars on a road warrior service that will provide me free towing, free battery recharging, and free tire changing services as part of its annual membership package.
5. I need to make friends with more auto repair shops and find a good and reliable local auto mechanic. I feel so ill informed when it comes to vehicle repair. I have friends who are police officers who can give me the genuine low down on the wheelings and dealings of the men in blue, but why don’t I have any car mechanic friends?
6. Honda’s and Toyota’s are not as reliable as I have long held them out to be. I’m starting to think that. Perhaps it’s clever marketing by those companies or maybe it’s simply my bad luck, but the Honda’s and Toyota’s I’ve had in the past have always broken down unexpectedly and prematurely. Aren’t alternators supposed to last the life of the vehicle or at the very least for 100,000 miles? Why do they break down so easily? I don’t get it.
7. I definitely need to replace my cell phone battery to ensure that I always have a reliable phone on hand that can handle extended phone calls during such emergencies. For the last few months my phone battery has been slowly dying and refusing to hold a charge for longer than a few minutes of active talk time. Due to laziness, I failed to replace it timely since I was still able to plug the mobile phone into the electric socket and talk normally at home. However, during my recent car breakdown experience, I had great difficulty maintaining an extended conversation over my cell phone due to the phone powering down constantly only after a few minutes of talk time. Having a working cell phone with a fully functional cell phone battery is definitely a must have in emergency away-from-home situations.

When you think of Ed McMahon, you don’t exactly associate or lump him with big time wasteful spenders like MC Hammer and some of the other well known celebrities of the past who rose to fame and fortune quickly but ultimately frittered away their money into bankruptcy on trivial pursuits. No, when you think of Ed McMahon, you think of the aging but charismatic late night show announcer, the TV personality, and the face and voice of the American Family Publishing sweepstakes team (not to be confused with the more popular Publisher’s Clearing House sweepstakes) that arrives unannounced at the homes of winners to present them their grand prize. You certainly don’t see or hear about him throwing his money away on fast cars, fast women, or holding lavish sleaze parties to great excess.

So I was quite surprised when I learned that someone like the now 80 plus year old Ed McMahon has now found himself in difficult financial straits and faced with the prospect of mortgage foreclosure on his multi million dollar home. This housing bubble and credit crisis seems to be quite merciless and universally brutal, even to those who simply lived their lives with the best intentions, but still succumbed to hard times. With little regard to feelings or reason, the mortgage credit crisis and the powerful forces of housing supply and demand have devastated many good families.

Ed McMahon and His Wife Pam Speak Out About Home Foreclosure and The Possibility Of Losing Their House

Ed McMahon recently appeared on the CNN Larry King Live show (CNN video clip) with his wife to discuss their difficult foreclosure nightmare and explain how a former multi-millionaire such as himself could fall from financial grace after all these years and have his house foreclosed on. During the conversational interview with Larry King, many of Ed’s words about how it all happened rang true:

“If you spend more money than you make, you know what happens. A couple of divorces flown in – a few things happened. You want everything to be perfect, but that combination – the economy, a little injury, breaking my neck – you just can’t work with this thing around your neck.”

“In some sense, I want to speak for the million people who now have foreclosure signs on their houses. I just want to give them hope, give them optimism and some guidance. Get the best corrective people you need around you, keep working at it, don’t stop. There’s a lot of people who are hard workers, did everything right, didn’t do anything wrong, and all of a sudden they are in this boat, and I speak for all of them as far as I’m concerned.”

“For everyone out there who’s going through this, we really sympathize with you. Be optimistic. It can be done. All kinds of things can happen. Let it work out great for you.”

When asked by Larry King to comment on the public assumption that the McMahons are multi millionaires and asked how they could have fallen behind $644,000 on their house mortgage payments, McMahon’s current wife Pam chimed in (tearfully at times):

“People do assume that you have hundreds of millions of dollars, and I think over the years it’s a combination of Ed working so hard and not looking at proper management which happens a lot. Because you’re a celebrity, people think you have a lot more than you have. And you always want to take great care of all your friends and family in all you do. We didn’t keep our eye on the ball and we made mistakes.”

“But you have to not give up. Whether we keep our house or we don’t keep our house. The whole financial issue might be the thing that ruins marriages, ruins relationships – but our marriage is strong.”

“You have got to realize that you can get through it. You never know what good things can happen for you tomorrow. Keep the faith.”

My Thoughts On Upper Class Celebrities, Ordinary Middle-Class Americans, and How To Protect Oneself From The Realities Of The Recessive Economy and Housing Market

After listening to the interview, I have to say I really started to sympathize with the plight of those in foreclosure. I know Ed McMahon and his wife Pam aren’t exactly representative of the classic foreclosure case, but at least they can relate to the pains of someone who can no longer afford his or her home mortgage loan payment and compelled to face the reality of home foreclosure. It’s an embarrassing and even humiliating experience that no one wants to be forced into. Home ownership is the American dream and when you can’t afford your pride and joy any longer, it’s a tough pill to take.

As I am currently still a happy renter and have not yet become a home owner, it is in my own personal and financial interest to see that there is no housing bailout whatsoever instituted by the government. This would obviously be the most self centered and self motivated route to take as opposition to any housing foreclosure bailout or assistance would help to ensure a growth in the glut and oversupply of available homes on the market, thereby substantially driving down real estate prices for the next 2-3 years until I decide to finally enter the housing market as a buyer.

But I do sympathize with most of the owners of the more than 1 million American homes (CNN news article) that are now shockingly finding themselves in foreclosure jeopardy. Sometimes in life, you do everything right with good intentions and yet bad things still happen when you least expect it. In Ed McMahon’s case, he may have lived an early life of entertainment and celebrity success and held to great esteem in his work, earning millions of dollars through the process, but apparently he failed to adequately plan for the future and prepare himself for inevitable financial emergencies.

The reality of home ownership life is that even those with good Fico credit scores who are able to qualify for and obtain prime fixed rate loans on their houses, bad things still may happen. Sometimes through no intentional fault of their own, people lose jobs, divorces happen, child custody battles rage on, or injuries and illnesses come up making one unable to afford one’s house anymore. With a stagnating economy in recession and plummeting real estate market prices eliminating much of the home equity built up in homes, such drastic and hard financial times can hit the best of folks. Without a proper emergency fund or savings set aside to handle such occurrences, even millionaires and celebrities, let alone ordinary people like you and I, can get hit by troublesome cash flow crunches.

The solution I think is to know and realize early on that life is inherently unpredictable and fraught with financial peril. Like the stock market, no one can accurately predict the good and the bad that will happen in the future. We can only anticipate and plan for the worst but hope for the best. While there are basic financial planning steps to take, such as investing for retirement through tax deferred vehicles like a Roth IRA account, one of the most important decisions is to save and build up an emergency fund. The amount that you will need to set aside for emergencies will vary from person to person, but it’s important to plan for emergencies. For example, my car recently broke down and I had to face a sudden and emergency $1,200 auto service repair bill to replace my vehicle’s alternator and battery to get it working again. Fortunately, I had saved enough on the side to handle such an emergency occurrence and expense.

The other important thing that we should glean from the Larry King – Ed McMahon interview is to stay optimistic and keep fighting. Never give up in despair. For those who are mired in housing foreclosure, credit card debt, or even perpetual unemployment, there is light at the end of the tunnel. Don’t forget, there are many similarly situated people out there trying to stay financially afloat just like you. Just keep plugging through and maintain the faith.