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I get a call this afternoon from some strange number, a 480 area code. I didn’t answer it because I was outside working on my daughter’s swingset, but they left a voicemail. It was a customer service rep from GoDaddy asking me if I had any questions pertaining to the domain purchase I made. This is the first company that I had purchased a product from them to ever call me. Took me by surprise. I have liked GoDaddy since I bought the .info domains for 99 cents, and this just adds to it. I may give the guy a call back because I backordered a domain, and I wanted some more information on how that works. I will talk about that more this weekend as I tell more about my other internet endeavors.

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I have bought domains with both of these companies, and I have to tell you, there is a huge difference. I always thought buying a domain name for a company was a pretty standard process, and that the company you bought the domain from did not matter. I was wrong.

I have bought 4 domains now with 1and1, and my buddies at work have each bought some from them. They have lower prices than most of the other domain registration companies, but that is about their only good selling point. They are very slow to register the domain, and changing the DNS takes hours and hours. After registering a domain, it takes about 3 days for the domain to actually be usable. It may take more time because the configuration is confusing, and if you have the wrong settings, it adds a day or two.

I have bought two domains with GoDaddy, two .infos for 99 cents each. When you buy the domain, you can change the nameservers so you don’t have to waste time like 1and1 waiting for them to change. Also any change to any settings happens within minutes, so there is no time wasted there. GoDaddy is just an overall better company. And while the prices are a little higher, there are coupons and links to get the price down.

1and1 vs. GoDaddy - GoDaddy wins hands down.

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I don’t really have a problem with Payday Loans. I know a lot of people see them as evil, but I don’t. Let me give you mine perspective:

I view a Payday Loan as loans that people desperately need. Say I need $1000 right now, but I don’t have it. My next paycheck for $1000 is coming in 1 week, but I can’t wait that week. That is where a payday loan comes in. It is a small bit of money that people need right away. If people need this money so bad, why can’t the payday loans companies have high interest rates.

They are taking a big risk of these people. These people obviously have no money, and are living paycheck to paycheck. These people would seem to have a high probability of defaulting on their loans. Payday loan companies are such that, companies. They are in it to make money. People need payday loan companies for the services they provide. If the interest rates are real high, then shop around. But most people in that situation don’t have time to shop around. They need money, and they need it fast.

Before you persecute these companies, you need to realize that they are making money.  This means people are going to them for loans.  If these companies are so sleazy and wrong, then why do people keep going back for more.  They see a need, and they fill it.  I do not see anything wrong with this.  Complaining about a company will do nothing, but taking an action will.  I complain about the Cable company in my area all the time, but they are the only Cable company, so I am stuck.  I think their prices are too high, but they are the service around me, so I am stuck.

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The wife and I opened a new Checking Account at Chase yesterday. We just got their free checking with no fees and a debit card. We really did not need anything else. Interest would have been nice, but the 46 cents a year we were getting before was easily sacrificed. We liked it because it was a bigger bank so when we travel they will have some in the area. They have a branch by both of our parents’ homes. We also liked it because of the $75 sign-up bonus for using Direct Deposit.

We switched from Fifth Third because of the horrible customer service. It is easily the worst bank I have ever had to deal with. The worst part of all is when you have to call and talk to a Customer Service rep. These people are all idiots, and I feel bad for anyone who has to deal with them. Most of the time the person said they would transfer my call, then they hung up on me.

On top of this was the fact they charged my wife $131 because of a fraudulent charge made to her Debit Card. Someone at Vermont Teddy Bear put in too many numbers for the credit card number, and my wife’s card got charged. They refunded the money, but after my wife closed the account, they wanted the money back. Needless to say in having to deal with Customer Service to resolve this issue, it never got resolved.

Once we get our tax refund, we will be closing our accounts at Fifth Third and never looking back. We only opened a checking account at Chase because I did not want to be transferring money back and forth all the time like I did with the old accounts. I have a High-Yield Savings Account that I will be using for my savings. I think I will open another High-Yield account and have one for our emergency fund and one for our “New House” fund. I want to buy a $200,000 house by the time my daughter goes to 1st grade (4 years), so I will need to save $40,000.

Moral of this story is to steer clear of Fifth Third. My wife’s parents agree that it is a horrible bank, so they are switching too.

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I got into a discussion with a colleague at work about what I should do with my bonus. I told him about all the debt I have, and he told me, “You know what they say. You should pay off the lowest debt first.” This made me think a little as my mom had mentioned the same thing to me when I told her about my student loan debt. With all this money coming in, I will be paying off a lot of my debt and I will need to choose what loan to pay off.  Do I pay off the lower amount or the higher interest loan?

I have always believed that paying off the highest interest rate first is the best approach. This way you “lose” less money. I don’t see a problem with making your regular monthly payments and using any extra money to pay off the highest interest rate loan. I just don’t see why you would think paying off the lowest debt first would be the right move. Maybe when you get down to a few hundred dollars, but why not spend that money on the high interest loan so you pay less in interest the next time around. The only advantage I see to paying off the lower debt is the sense of satisfaction that you have one less debt to pay off.

You may have one less debt, but in the long run you are spending more money. $1000 less at 10% interest is $100. $1000 less at 5% is only $50. You put the $1000 into the 5% interest loan, you will spend an extra $100 on the 10% loan. You lose $50 by paying off the lower debt. I would rather keep this $50 and reinvest into the loan. Paying off the higher debt is always a win - win situation. That is why I am using my extra money to pay off my high interest student loans.

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A comment on my post called A Different Approach to the Emergency Fund linked to a blog that stated that I was named the “the most influential, informative, or entertaining” blog from the state of Indiana. This was the Credit Card Blog on Your Credit Network. The post previous to this one was about How to Improve Your Credit Score. This was a very good post. Here are some highlights:

• First of all, there is no quick way to improve your credit score. It is a long process, but the rewards at the end are worth it. Rewards like lower interest rates and better credit cards.
• Make payments on time. This is the most sensitive area, and probably the easiest one to control. Missed or frequently late payments will greatly affect your score. If you have missed payments, get them current. Having them current for a long time will help reverse your score, and start it back on it’s way up.
• Collections or overdue debt will stay on your credit history for 7 years. Some companies will help you remove these from your history for a small fee.
• Keep your balances low. If you have debt, do not move it around. Although this is a good way to pay off your debt, it hurts your credit score more than just paying it off. Closing accounts after you have paid them off will hurt your credit score too. Part of your score is how much credit you have that you aren’t using.
• Do not open too many accounts is a short period of time. Also, do not look for credit too often in a short period of time. I.E. Do not get a mortgage and a new car loan in a relatively short period of time because the constant credit pulls will hurt your score. Open some new accounts to rebuild your history, but do it in a manner that is easy for you to repay.

The only problem I have with this list is that I do not like to leave accounts open that I am not using. I don’t like the idea of an account open that I am not tracking. It just seems to be left open for someone to abuse. I know it may hurt my credit score to close these accounts, but it gives me piece of mind to close them.

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I recently have been making many modifications to the house in order to reduce our heating bill. Our house gets unusually cold throughout the day, and I know that outside air in coming in somehow. Since the weather in Indiana is getting colder and colder (it is supposed to be 10 degrees tonight), I figure now is as good as time as ever to get my house more energy efficient. Below is a list of things I either have done or will do:

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In the book I just read and reviewed - Smart and Simple Financial Strategies for Busy People by Jane Bryant Quinn - there was a lot of good information about 529 plans. I thought I would share the key points from the book and some research I did on my own. One of my New Year’s Resolutions is to start saving for my kid’s college, so this info came as a real help. I know I have 16 years until my first daughter goes to college, but like everyone says, it is always better to start earlier than later.

The best websites to start for good information:
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I have just started reading my first finance book.  As I have been reading, I have come across some really good information, like websites and phone numbers, that does not stick in my head like the main ideas from the book.  I tell myself that I will just go back and get this information later, but I do not mark the page or write anything down.  I realized what a horribly inefficient and unorganized way of reading this is.  One of my biggest New Years Resolutions is to be more organized, and I believe my first major step is coming today.

While reading this book (which I will review soon), I am picking up all the important information.  Problem is, when I pass the information that is too specific to remember, I just forget it.  I realized that I should be reading with a notebook beside me.  I am going to go out and get a nice 5-subject notebook (any notebook will do, but I plan on reading a lot of books) and some little sticky notes.  Now every time I read, I will keep this notebook beside me and write down all the important information in it.  This will save me time from going back to find this info, and if I ever want to re-read it, I will have the notes all ready to go.  It’s amazing how much I have learned since leaving college that would have made me do that much better in college.

I just wanted to put this little idea out there for everyone in case someone out there had not thought of it yet.  I really think I will get that much more out of reading if I start this.  I also will save more time which I can use to spend with my family and friends.

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My wife got an e-mail (yes, they chain e-mails that everyone seems the need to forward) that was actually very interesting. It was about a segment Andy Rooney did on 60 minutes. He has 3 steps on how to deal with telemarketers. Here is part of the e-mail my wife got:

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