Cut up your credit cards to cut debt

With the latest Reserve Bank figures revealing that Australians owe almost $49 billion in credit card debt, Diana Mathew, from The Money Tree, reminds us to eliminate this debt in order to budget and save for the future.

“I have yet to see a system that allows you to budget properly and use credit cards,” she said. “Travelling overseas is the only valid argument for credit cards.” But, she stresses, you will need to deposit your holiday savings into this account before embarking on your holiday and cut up your credit card immediately upon your return to avoid negative spending habits.

“My personal experience is that it is almost impossible to get out of debt forever if you do not get rid of the temptations NOW,” said Mathew.

Her argument is that there is no emotion attached to credit-card spending. It feels as though you are not spending your hard-earned cash.

Also, a credit card enables you to talk yourself into a purchase you may not be able to afford, simply because you have the option of paying later. Therefore, you are not concerned about the expense until it is too late.

“It feels good to carry cash,” she said. “Spending your cash-on-hand budget is an emotive action.” She said that you are more likely to consider your purchase; whether or not your need is valid and whether or not your budget can allow for it.

“The next time you go to purchase an expensive item which you’d normally use a card for, hand over the cash instead and feel the difference,” said Mathew.

“If you are a credit card addict and can’t cut them up, make them very difficult to get at. Put them in a plastic container with water and put the container in the freezer,” she advises. This will enable you a few hours to decide if your desired purchase is truly necessary.

Recent research by Euromonitor, reveals that credit card usage in Australia has risen since 2009 due to increased consumer confidence. A projected increase of 3% is expected for numbers of Australian credit cards in circulation, while credit card transactions are also expected to increase by 3%.

Reserve Bank statistics also reveal that credit card and personal loan debt in Australia, is now at $1.2 trillion, a rise of 71% on figures from just 7 years ago. This equates to $56000 of debt for every man, woman and child in our population.

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For more information on The Money Tree System or to purchase, follow this link: http://www.mymoneytree.com.au/

A letter of gratitude from Japan--A rose among the debris

This letter was written by Anne, a Japanese citizen directly effected by the recent earthquakes and tsunami, and was copied onto the Facebook page of Arcadia Love.

Anne's letter is beautiful--I love that she sees the positives in a devastating situation. We see all the destruction, hear of the terrible losses, the people crammed into evacuation centres and we imagine their suffering, their sense of desolation, grief and loss. I hadn't considered just how uplifted and restored they must feel when the hand of strangers is extended. It renews faith in the human spirit that there is love, hope, generosity and empathy out there. 

The other thing I love about this is that she, and the people around her, appreciate the simple things and that going back to basics is not a bad thing but reminds them of what is important--not capitalist wants but spiritual connections and basic human needs.

Her letter is as follows:

Hello My Lovely Friends,   

First I want to thank you so very much for your concern for me. I am very touched. I also wish to apologize for a generic message to you all. But it seems the best way at the moment to get my message to you.   

Things here in Sendai have been rather surreal. But I am very blessed to have wonderful friends who are helping me a lot. Since my shack is even more worthy of that name, I am now staying at a friend's home. We share supplies like water, food and a kerosene heater. We sleep lined up in one room, eat by candlelight, share stories. It is warm, friendly, and beautiful.   

During the day we help each other clean up the mess in our homes. People sit in their cars, looking at news on their navigation screens, or line up to get drinking water when a source is open. If someone has water running in their home, they put out sign so people can come to fill up their jugs and buckets.   

Utterly amazingly where I am there has been no looting, no pushing in lines. People leave their front door open, as it is safer when an earthquake strikes. People keep saying, "Oh, this is how it used to be in the old days when everyone helped one another."   

Quakes keep coming. Last night they struck about every 15 minutes. Sirens are constant and helicopters pass overhead often.   We got water for a few hours in our homes last night, and now it is for half a day. Electricity came on this afternoon. Gas has not yet come on. But all of this is by area. Some people have these things, others do not. 

No one has washed for several days. We feel grubby, but there are so much more important concerns than that for us now. I love this peeling away of non-essentials. Living fully on the level of instinct, of intuition, of caring, of what is needed for survival, not just of me, but of the entire group.  

There are strange parallel universes happening. Houses a mess in some places, yet then a house with futons or laundry out drying in the sun. People lining up for water and food, and yet a few people out walking their dogs. All happening at the same time.   

Other unexpected touches of beauty are first, the silence at night. No cars. No one out on the streets. And the heavens at night are scattered with stars. I usually can see about two, but now the whole sky is filled. The mountains are Sendai are solid and with the crisp air we can see them silhouetted against the sky magnificently.   

And the Japanese themselves are so wonderful. I come back to my shack to check on it each day, now to send this e-mail since the electricity is on, and I find food and water left in my entranceway. I have no idea from whom, but it is there. Old men in green hats go from door to door checking to see if everyone is OK. People talk to complete strangers asking if they need help. I see no signs of fear. Resignation, yes, but fear or panic, no.  

They tell us we can expect aftershocks, and even other major quakes, for another month or more. And we are getting constant tremors, rolls, shaking, rumbling. I am blessed in that I live in a part of Sendai that is a bit elevated, a bit more solid than other parts. So, so far this area is better off than others.  

Last night my friend's husband came in from the country, bringing food and water. Blessed again.  

Somehow at this time I realize from direct experience that there is indeed an enormous Cosmic evolutionary step that is occurring all over the world right at this moment. And somehow as I experience the events happening now in Japan, I can feel my heart opening very wide. My brother asked me if I felt so small because of all that is happening. I don't. Rather, I feel as part of something happening that much larger than myself. This wave of birthing (worldwide) is hard, and yet magnificent.   Thank you again for your care and Love of me,   

With Love in return, to you all, Anne. 

Something to think about....

The Dalai Lama, in answer to the question 'What surprises you most about humanity?', answered:

"Man.. Because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future he lives as if he is never going to die, and then dies having never really lived."

Quote by Victor Frankl, Concentration camp survivor

"We who lived in concentration camps can remember the men who walked through the huts comforting others, giving away their last piece of bread. They may have been few in number, but they offer sufficient proof that everything can be taken from a man but one thing: the last of the human freedoms--to choose one's attitude in any given set of circumstances."

Wise kid's proverbs! By Tracey Vale

Students from a primary class were given the first portion of well-known proverbs and were asked to complete them. These were some of the results and were sourced from the book The Mammoth Book of Humor, by Geoff Tidballs, Carroll and Graff Publishers, Inc., 2000:

• A penny saved is.....not much.
• When the blind leadeth the blind.....get out of the way.
• Two's company, three's.....the Musketeers.
• Where there's smoke there's.....pollution.
• Laugh and the whole world laughs with you, cry and.....you have to blow your nose.
• None are so blind as.....Helen Keller.
• An idle mind is.....the best way to relax.
• Love all, trust.....me.
• You can't teach an old dog new.....math.
• A miss is as good as.....a Mr.
• You get out of something what you.....see pictured on the box.
• If at first you don't succeed.....get new batteries.
• Children should be seen and not.....spanked.
• Happy the bride who.....gets all the presents.
• If you lie down with the dogs you'll.....stink in the morning.
• The pen is mightier than....the pigs.
• Don't bite the hand that.....looks dirty.
• No news is.....impossible.
• Never underestimate the power of.....termites.
• It's always darkest before.....daylight savings time.
• Strike while the.....bug is close.
• Look before you....run into a pole.
• People in glass houses.....shouldn't run around naked.
• Too many cooks.....so few meals.

Seller Beware: online car buyers using PayPal fraudulently, By Tracey Vale

On the first day that we advertised our car for sale through http://www.carsales.com.au/, I received a text message on my mobile from an interested buyer. She left her 'personal' email address and asked that I email a reply.

I was not near a computer at the time, so I texted back, only to have the operation disallowed. Later, I emailed her the following:

'Hi Katy, Yes, the car is available. Email me any questions.' The email address was to a Katerine Sanders at a yahoo address. She had signed off as 'Katy' in her text message.

Her response began with a 'Hey', with no reference to my name. We later realised that this was a generic letter and not a personal response. This email went as follows:

"Thanks for the prompt response.

"I will like to know more about its condition and possibly have more pictures of it I will be very glad to have more pictures of it. Do as well advise on the least amount you will like to give it away. I will be very glad to conclude this as soon as possible.

"Due to the nature of my work, I will not be able to come for the inspection,because am presently out of the country. I will be handling the pick up of this merchandise through a legitimate shipping agent.. The vehicle will be picked up after you receive the full payment, so i really need to know the mode of payment because i need this vehicle urgently. Hope to read from you asap.

"Thanks again and hope to hear from you soon.

Katy."

Now at this point I'm thinking: why does she need more pictures? There are 14 available with our advertisement. She has also asked about the price, which has also been clearly stated. In my return email, I tell her the price and explain why I think this is fair based on a car-yard evaluation. I also ask what other photos she might require.

Her response, which includes thanking me for telling her that the vehicle has not been in any accidents (which it hasn't but I did not say this), was as follows:

"Thanks for sending me more information about the car. It was really of immense help.  I am glad to know that the car is of a good mechanical condition and has not had any accident in the past. Your sincerity is something I see very necessary to appreciate. Thanks a lot.

"I have actually tried to get this car here earlier from here but most of the ones I got either have one huge mechanical fault or the other and some have even had accidents in the past while some are extremely exhorbitant.

"I could have come and inspect the car and then pay you in cash,but i can't due to the nature of my work.I am an oceanographer, i am at sea right now..I am actually trying to get this car for my first son will be adding a year to his age in about 3 weeks as he has always been a fan of this car.  So I think its worth paying whatever the shipping charges will be just to put a laughter on his face.

As to the price, I will offer you $14k. So if you deem the offer good enough, I will be very glad to make the payment asap through my PayPal account as I am currently offshore and I won't definitely be able to make it to my bank to make bank wires across to you.

"As to shipping, you need not worry yourself about how the car will get to him in Malaysia as I will contact a shipping company that has their headquarter situated in Malaysia and they will handle the pick up and shipping.Please note that i will not be needing the vehicle registration because it will be invalid over there so please remove the registration.. I will however be needing your contact address to be able to get the shipping quote from the shipping company.

"Do get back to me asap with your PayPal Email address and Full name so that I can remit the payment asap.

Cheers,

Katy"

Firstly, it seemed strange that she would purchase a seven-seater for her son, but then--maybe he's not as young as I'm imagining. So I let that slide.

Secondly, if she is so wealthy that she doesn't care what it costs to ship a car from Australia to Malaysia, why doesn't she buy him a brand new car? Her excuse is that her son has always loved this car--it is a white station wagon! Alright, the front lights are fancy, making it a unique-looking station wagon....

Thirdly, she is offshore and therefore claims this as the reason that she can't get to a bank and can only use PayPal. Also, she is claiming urgency by using the son's birthday as an excuse.

Fourth, she is offering $1000 more than the asking price--unheard of when selling a used car.

And my fifth concern was when she stated "most of the ones I got either have one huge mechanical fault or the other and some have even had accidents in the past." I think: what does she mean "most of the ones I got"? Does this mean she has some means of returning the vehicle if she doesn't like it, and would she be protected in doing so by PayPal? I think not but I am curious as to what she intends to get out of this if she is not a legitimate buyer.

This leads me to Google. I type in the search 'PayPal car purchase scam' and a multitude of matching results appear from forums to articles. All detail the same type of email approach with the same reasons as to why the purchaser can't get to a bank and why the purchase is urgent.

Those bitten by this scam have lost around $750 to $7500. Victims of the lesser amount had been asked by the fraudulent purchaser to pay the shipping cost to a Western Union Bank, claiming that they had paid this amount by raising the offer on the car. The seller was told that PayPal would not release the money unless this shipping fee was paid.

With just a brief look, it appears that victims have been scammed since 2009 from the U.K., New Zealand and Australia. Boats, motorcycles, trailers and horse floats have also been targetted items.

An article from Auckland's Manawatu Standard, states that a New Zealand woman was humiliated by the fact that she had fallen prey to the scam but wanted others to be made aware. She could not afford the $750 she lost just before Christmas and it meant that her children had to go without.

She said that the exchange of emails had given her a false sense of trust. It seems to me, from reading the forum complaints, that women may have been particularly targetted.

Another name given as the buyer, was Susan Owen and another was Rose Kelly. A Mark Smith has also been used. I believe women's names are being used in these transactions with other women as a means of building trust, as well as the use of the mother-son relationship.

It should be mentioned that letters from PayPal to the seller were fraudulent and were not sent from PayPal's offices. PayPal has since placed limitations on their system and have listed scam types to be aware of on their website. (See their advice below.)

PayPal does not hold any money in these instances and any money that is transferred to these scammers will be lost. Wired money, the type requested for the bogus shipping fee, is not traceable or returnable.

It comes back to the old adage--if it's too good to be true, then it probably is.

PayPal's advice: (as cited in a paper from WA ScamNet, accessed at http://www.docep.wa.gov.au/ConsumerProtection/scamnet/Scams/Online_car_sales_sca.html )

• -  Any genuine PayPal emails advising of the payment of funds into an account will not include caveats regarding additional payment transfers required to third-party organisations
• -  PayPal recommends that customers check their account balance by logging in securely at http://www.paypal.com.au/ and only completing transfer of goods on such items once payment is received into the account
• -  PayPal encourages customers to report suspicious e-mails to spoof@paypal.com
• -  PayPal also encourages customers to  visit its online security centre for additional tips on avoiding fraudulent scams.

Quote from the movie: Akeelah the Bee

Our deepest fear is not that we are inadequate.
Our deepest fear is that we are powerful beyond measure.
We ask ourselves
Who am I to be brilliant, gorgeous, talented and fabulous?

Actually, who are we not to be?

We were born to make manifest the glory of God that is within us.

And as we let our own light shine,

we unconsciously give other people permission to do the same.

Marianne Williamson

Photograph Copyright: Tracey Vale 2005