MMG Weekly

MMG Weekly

Last Week in Review

"NO MATTER HOW FAR LIFE PUSHES YOU DOWN, NO MATTER HOW MUCH YOU HURT, YOU CAN ALWAYS BOUNCE BACK." WNBA player Sheryl Swoopes. And bouncing back is exactly what Bonds and home loan rates tried to do last week after being pushed to their worst levels of the year.

Bonds and home loan rates managed to hold fairly steady in the first half of the week, despite comments from Philadelphia Fed President Charles Plosser, who said "inflation is too high." Remember signs of inflation typically cause Bonds and home loan rates to worsen, but Plosser also stated that the Fed must "back up their words with action" and hike their benchmark Fed Funds rate. Since a hike by the Fed could lessen inflation...and as a result, cause Bonds and home loan rates to improve...Plosser's inflation comments didn't have as much of an impact on the markets as they could have otherwise.

On Thursday, Bonds managed their biggest rebound of the week after several negative economic reports, including a much higher than expected Initial Jobless Claims report and a lower than expected Existing Home Sales report for June, caused money to flow out of Stocks and into Bonds. However, there was good economic news on Friday as New Home Sales for June and Orders for Durable Goods were far better than expected and the Consumer Sentiment Index shocked the markets with a very robust reading. And good economic news about the economy is bad news for Bonds, which caused money to flow right back out of Bonds into Stocks, keeping Bonds and home loan rates from bouncing back any further.

After all the dramatic ups and downs of the week, Bonds and home loan rates ended the week slightly improved.

GAS PRICES HAVE BEGUN TO IMPROVE, BUT THEY'RE STILL MAKING A BIG IMPACT ON OUR WALLET. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR SOME GREAT TIPS ON HOW TO MAKE YOUR GALLONS GO FURTHER.

Forecast for the Week

Several reports that are scheduled for this week could determine whether Bonds and home loan rates can manage a bigger comeback than they did last week. Definitely stay tuned for the Department of Labor's big Jobs Report scheduled for Friday, which will show the number of jobs lost or gained in July. Remember: The Department of Labor averages their numbers, and part of each month's report includes "revisions" to the several prior months' numbers. A positive report could be good news for Stocks, but bad news for Bonds and home loan rates, so it will be especially important to see what numbers are posted on the "scoreboard."

Also keep an eye on Thursday's Gross Domestic Product (GDP) report from the Commerce Department. GDP is the broadest measure of economic activity...and since good economic news typically causes money to flow into Stocks and out of Bonds, this report will be important to watch. Remember when Bond prices move higher, home loan rates move lower...and vice versa. It will be important to see if this week's news can help or hinder Bonds and home loan rates in their attempt to bounce back.

Chart: Fannie Mae 6.0% Mortgage Bond (Friday Jul 25, 2008)

The Mortgage Market View...

Alleviating Pain at the Pump
Earlier this month, the New York Times ran a story noting that many gas stations are running out of the price sign number 4 due to the high cost of gas around the nation. And while gas prices have declined slightly over the last few weeks, the numbers are still putting a big dent in many people's pockets.

Here are some gas-saving tips that can help alleviate the pain at the pump:

Embrace Technology. A Global Positioning System (GPS) device can help you avoid traffic and getting lost, plan routes, and bypass construction and accidents. If you don't have a GPS, you can also get free real time traffic information at www.traffic.com. In addition, you can find links to many local resources at the Federal Highway Administration's traffic and road closure information Web site, www.fhwa.dot.gov/trafficinfo.

Go cruising. If your car has a cruise control feature, use it on highways when possible. According to tests by automotive information Web site www.Edmunds.com, cruise control decreases gas consumption by nearly 14%...except in hilly areas, where it can have the opposite affect.

Get some fresh air. If you are driving less than 50 miles per hour (mph), consider opening the windows instead of using air conditioning. Interestingly, it is more efficient to use air conditioning at higher speeds, due to the drag caused by the windows being open.

Check your speed. Fuel economy decreases around one percent for every mph over 55...and drops even quicker when you drive faster than 65 mph. Slow down where possible.

Get That Check Up. Check your car regularly to make sure your tires are properly inflated. Also, remove excess weight that's not needed from your trunk or roof.

No matter how often you're filling up your tank these days, these gas-saving strategies are a surefire way to help you stretch your gasoline even further.

How bad do the Credit reporting agencies screw up your credit?

Click the Below Play button










"Fr.e.e Telephone Seminar Reveals...The Major Flaws in the Credit Reporting System, How They Affect You, and What You Can Do About it!"

Dear Freind



I would like to invite you to a very special 60 minute FREE Tele-Seminar with Guest Speaker Brian Diez, the expert on Credit reporting flaws and how it's costing you more for everything you purchase, including insurance, home mortgages and credit cards interest.
Discover What the Credit Bureaus Hoped You'd Never Learn...
Go to
http://www.thecreditaudit.com/ reserve your slot now. Hurry! Slots are limited!
(Click the above link or cut and paste into your browser)


if you are one of the first 50 people who respond you'll also receive Brian's special report that reveals how the bureaus are intentionally trying to scam you by selling you useless information! Here's what else you're going to learn on this special call..."


Who the bureaus really are

What information they keep in their files and how long they keep it

What their real role is in our society

How they make their money

How they handle your disputes

Why they refuse to comply with the Federal Trade Commission and how they get away with it The gaping holes in their system

How their flaws affect YOU,


How to exploit the holes to level the playing field and much much more!

PLUS, you'll get YOUR single most important question answered by Brian Diez. He normally charges $550.00 an hour. You get his undivided attention and his expert advice for FR$E$E!

Please rest assured. Even though I'm not charging anything to be on this call, there is absolutely no obligation to buy anything. This teleseminar stands alone as a value in and of itself.

This information will be revealed: July 29, 2008 at 4PM EDT
Reserve your slot now. Hurry, slots are limited!

WARNING: This invitation is being sent out to over 11,127 of our past customers. We only have 150 phone lines reserved. Please DO NOT procrastinate. (If you are NOT one of the first 150 to respond, you will be promptly notified.)


Warmly,

Billy Alvaro

Americas Wealth Coach


P.S. FREE tele-seminar The Major Flaws in the Credit Reporting System, How They Affect You, and What You Can Do About it!" Line availability is limited. Click here now to reserve you vip spot http://www.thecreditaudit.com/










































































Enjoy the weekend
Billy Alvaro
Americas Wealth Coach
The Billy Alvaro Group

Is Your Money Safe in the Bank? What Does the Collapse of Indy Mac Bank Mean?

Billy Discusses FDIC and Safeguarding Money

Click The below Play button To learn how to protect yourself and your money





Headlines about the FDIC and the banking industry have raised questions about where to put money and how to make sure it’s safe. Billy Alvaro breaks through the confusion with a quick discussion of the current events and suggestions to help protect yourself and your family.

How many more banks are at risk of failure?

The FDIC has identified 90 banks as "problem institutions" that are at risk of failure for the first quarter of 2008. "That number will go up," but historically, only about 13 percent of banks on this list typically fail, says the FDIC's Bair.

What deposits are insured by the FDIC?

A depositor with any type of account at an FDIC-insured bank or savings and loan is fully insured for up to $100,000 per bank. It's possible that a depositor could have more than $100,000 insured if he or she has a joint account or one of seven other legal ownership arrangements. (Get details on insured accounts.) All types of individual retirement accounts are also insured for up to $250,000.

Helping you eliminate debt- Build wealth and protect your assets

Expext success
Billy Alvaro
http://www.savemonthly.com/
800-793-5015 x 100

P.S I wrote an interesting post yesterday. Watch it here http://savemonthly.blogspot.com/2008/07/question-are-your-prepared-this-video.html

P.P.S Make sure you help out your friends -family and co-workers protect their assets as well. Forward this to them by clicking the envelope below...

THE QUESTION! Are Your prepared? This video will get you to think.

Ladies and gentleman, its no secret, tough economic times are hitting America hard. Folks all across America are feeling the noose getting tighter around theirs necks.

Some, unfortunate Middle class families, families like yours, that once had a good paying job, a home and some savings in the bank, are finding themselves BROKE and Homeless.

But we never think it can happen to ME.
Things will never get that bad, most say.

It’s always going to happen to the other guy; however someone is going to be that other guy. We are a nation in self denial.

I wont get sick with cancer, not me...
I wont get hurt in an accident and loose my income, not me...
I wont loose my job, not me...
I wont have to worry about paying my bills, not me...
I wont ever become homeless, not me...

Smart -wealthy people PREAPRE and PLAN well in advance. They minimize their risk. They always have a plan A and a what if plan b and c.

Take 6 minutes and 36 seconds and watch this video, then ask yourself these questions



1.Have I gone through a personal Economic PROBLEM PREVENTION audit to detect any potential problems within my financial security plan?

2. Am I saving at least 10% of my annual income, consistently?

3. Do I have a debt elimination plan in place, which systematically eliminates all debt including my mortgage within 7-11 years? Do I have a plan to pay off my home without taking money from my discretionary income, or doing a biweekly ?

4. Do I have a sound -secure retirement plan in place- one where I will have over 1 million liquid in the bank?

5. Am I solely relying on the SYSTEM set by the government to take care of me during retirement- depending on Social Insecurity and a pension?

6. Do I have an expense reduction management plan in place? assuring me I'm not wasting my money

Very few of the people I meet with have it financially together, always putting it off till tomorrow... get your financial house in order, NOW.

Here is a 4 step easy to implement plan!

Step 1. Conduct a complete audit on your income-assets-credit-personal debt, mortgage debt, expenses, cash flow, net worth and investment strategy. This is known as a personal economic diagnosis

Step. 2. After detecting the weak or problem areas map out a plan for each area to eliminate your debt, reduce expenses, wipe out your mortgage, increase your savings, accumulate wealth for retirement managing cash flow and increase your net worth. This is known as the prescription phase.

Step 3. Have an on going system in place for monitoring your plan, when you see your heading in the wrong direction or if you get slightly off course make the corrections and get back on track…

Step 4 Lastly, what ever you do TAKE ACTION, if you don’t plan for success the plan may be failure or worse becoming homeless and broke!

Expect success and take action
'Billy Alvaro

P.S If you'd like to get a full blown personalized economic problem prevention audit and a guaranteed plan for financial success you can get on my waiting list for the audit. Simply fill it out here www.savemonthly.com/firststep . One of my assistants or associates will call you for the preliminary over the phone meeting to see if you’re eligible to meet with me for the audit.


P.P.S watch this video of Joel and Maria Holderman as they discuss what they economic problem prevention audit did for them, their family and future… www.savemonthly.com/holderman

5 Credit score Mistakes & How to Avoid Them

It's surprising how many consumers make the same credit scoring mistakes over and over again. In an effort to educate consumers on credit and credit scoring, we've compiled 5 common credit scoring mistakes into a list that defines each mistake and explains why they are bad and how to avoid them:

Credit Mistake #1: Closing Credit Cards Accounts

This is probably THE biggest credit mistake that consumers make. What you may find surprising is that closing credit card accounts can hurt your credit score almost as badly as missing a payment.

Not only is this the number one on the top five credit scoring mistakes, it's also number one on the list of credit myths.

Ironically, most consumers make this mistake based on poor advice from a mortgage lender as a strategy for improving their credit scores. A word of advice people, when you're dealing with something as sensitive as your credit and credit scores, make sure you do your homework before trusting some of these so called 'industry experts' before following through with their advice.

There are two important reasons why you should not close credit card accounts:
1. Eventually, the accounts will fall off of your credit reports - The information in your credit reports are subject to certain rules in regards to how long it can remain in the report. In most cases, credit information will remain in your credit reports for seven years from the account's DLA or date of last activity.

When an account is open, the DLA will continue to update each month and the open account will never reach that seven-year mark.

If you close the account, the DLA will stop updating and the clock will start ticking. Eventually the account will be completely removed from your credit reports.

Why would this be a bad thing?

It's simple - you never want to get rid of old, positive information in your credit reports. This information actually helps your credit scores.

Credit scores want to see this positive account information. They want to see your long, perfect history of making your payments on time because this information significantly helps your credit scores.

This information significantly helps your credit scores so why would you ever want that history to disappear? You wouldn't! Here's an analogy for you: let's say you made straight A's in high school. What if the record of that perfect scholastic accomplishment were permanently deleted seven years after you graduated? Would you ever want that history deleted? Of course you wouldn't. The same is true for the credit reporting environment.
So, what should you do with old credit cards that you don't use any longer?
What you don't want to do is to let the account become inactive. When this happens, the credit card companies aren't generating any revenue for your account.
Eventually they'll close the unused account because you're more of a liability than an asset. You can prevent this from happening by using the card every few months for low dollar purchases like dinner or a tank of gas.
When the bill comes in, just pay it in full. If you do this, it will ensure that the account will never be closed and you'll always get credit for your good payment history.

2. You could cause a spike in your revolving utilization and tank your scores - The percentage of your available credit in comparison to the debt you owe is a very important factor in calculating your credit scores.

This is often called "revolving utilization," or your debt-to-limit ratio.
For example, if you have an open credit card with a $1,000 credit limit and a $500 balance then you are using 50% of your available credit. This means that you are 50% utilized on this particular credit card.

Now lets add a second credit card to the mix.
Let's say you have another open, but unused credit card account with a $1,000 limit and a $0 balance. This would put your total revolving utilization at 25% because you have $2,000 in available credit limits and $500 in total balances.

If you divide your total balances by your total credit limits, you'll get your total aggregate revolving utilization: $500 divided by $2000 equals .25 or 25%.
So how will closing unused credit cards hurt your credit score? When you close an account, the amount of available credit decreases, which could result in a higher revolving utilization and lower your score.

Let's use the example from above and close the second unused credit card account. When you close the account, you remove it from any utilization calculation and now you're stuck with one open credit card account with a $1,000 limit and a $500 balance.
This caused your utilization to go from 25% to 50%.

Remember, you divide the total balance by the total available limit so $500 divided by $1,000 is .50 or 50%. As this percentage increases, your credit score decreases.
When you're talking about several unused credit cards with high limits, you can just imagine what closing credit card accounts could do. I've seen consumers go from a 10% utilization to almost 100% utilization because they closed all of their credit card accounts except the one they were currently using.
Big mistake.

Credit Mistake #2: Missing Payments
It doesn't take a credit scoring expert to tell you that missing payments is a bad thing. The only reason I made missing payments second to Closing Credit Card Accounts is because this one is a no brainer.

It shouldn't take a credit expert to tell you that missing payments is bad. Common sense should tell you that missing payments is bad. Credit scores are designed to predict how likely you are to miss payments in the future.

This means that they look at your credit history to view how you've managed all of your credit obligations.

Missed payments is the most powerful predictor of future late payments. The FICO score evaluates previous late payments in three different layers:
How Severe - How severe is the late payment? It doesn't take a statistician to tell you that a 30-day late isn't as bad as a 90-day late. The more severe the late payment, the more damaging it is going to be to your credit scores.

Consumers who have missed payments by a few weeks and then bring their accounts current score much better than consumers that have gone 90+ days past due. In fact, a 90-day past due is the threshold that will wreak havoc on your scores.
If you are unable to avoid a late payment, the next best option is to get those accounts current as quickly as you can.

How Recent - How long ago did the late payment occur?
If you've read some of my previous articles on credit scoring, you'll know that the last 24 months of your credit history are critical because the FICO score places more emphasis on your recent credit patterns.
This means that a late payment 6 months ago is going to carry much more weight than a late payment from 4 years ago. To recover from late payments it's important that you get current and stay current.

How Frequent - How often have the late payments occurred? Consumers that miss payments frequently are penalized much more severely than those that have missed a payment here or there in their past.
If you have a tendency to make late payments your credit scores will reflect your bad habits. Make your payments on time and you'll never have to worry about losing points in this category.

*********************************************************************
FREE Credit Analysis Offer

Is your Credit costing you more for goods and services because of erroneous information ? Low scores? Late Payments? Call 800-793-5015 x 100 For a FREE Credit analysis (a $69.00 Value) and receive my 39 page Insiders Credit repair Tool kit exclusively for readers of my blog.

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Credit Mistake #3: Settling Accounts
One of the most common mistakes consumers make is assuming that 'settling' with a lender is a great way to save a little cash.
Unfortunately, they don't realize what that a 'settled' indicator in their credit reports is actually derogatory.

"Settling" is a term used in the consumer credit industry that means accepting less than the amount you owe on an account. For example, if you owe a credit card company $5,000 but you can't pay them the full amount then they will likely make you a deal for less than that full amount. They have "settled" for less than the full amount, which is likely much less than you contractually owe them.

This may seem like a good idea because you save quite a bit of money but as far as the credit scoring models are concerned, this is just as negative as other severe late payments.
The only way to avoid the damage to your credit scores is to arrange a deal with the lender to report the account as 'paid in full' as opposed to 'settled'. If they don't agree then it's in your best interest to figure out how to pay them in full or else be prepared to suffer the damage to your credit for the next 7 years.

It's also important to understand that if the account has already made it to the collection phase, the damage is already severe and settling won't really make a difference. Settling is only an option if the account has already made it to a severe delinquency state.

Credit Mistake #4:
High Revolving Utilization on Your Credit Cards
Most consumers believe that making your payments on time is all it takes to have good credit and earn great credit scores.

What they don't realize is that almost a third of your score is determined by how much you owe on your credit card accounts. If you have high balances on your credit card accounts, you're credit scores could be severely impacted by your revolving utilization.
In order to score the most possible points in this category, I advise keeping your revolving utilization at 10% or less.

Don't be fooled when you hear some of these celebrity experts telling you that 50%, 30% or even 25% is best.
While 30% is considerably better than 50%, 10% or less is ideal. The lower the utilization percentage, the better your score will be. (*To read more about revolving utilization and how it's calculated, please read the revolving utilization bullet in Mistake #1.)

Credit Mistake #5: Excessively Applying for Credit

Whenever you apply for credit your application gives the lender permission to access your credit reports. When they pull your credit reports, it automatically posts an inquiry in your credit record. This inquiry is a record of who pulled your credit report and the date it occurred.Â
Credit scoring models use inquires to determine if and when you shop for credit. Statistics show that consumers who have more inquiries are higher credit risks than those with fewer inquiries.
It is for this reason that the more inquiries you have, the more points you lose in the credit score calculation.

The exact point value of inquiries is a much argued topic and is impossible to give an exact point value because it really depends on all of the other information included in your individual credit file.

The best strategy would be to only apply for credit when you absolutely need to.
This means that you should avoid those in store offers of "10% off" in exchange for applying for a store credit card. This may sound like a great idea but the reality is that while you may save a few bucks on your purchase, those inquiries could end up costing you a lower credit score which could result in higher interest rates on auto or mortgage loans in the future.

There you have it. Now that you know the top 5 credit mistakes, you can avoid making the same mistakes that so many other consumers make.

Expect success
Billy Alvaro
The Billy Alvaro Group
Helping Middle Class Americans achieve Financial Freedom through education

P.S. The First step to Financial freedom starts with taking the Economic Problem Prevention Audit (EPPA). The EPPA has liberated over 11,127 hard working families go from debt taxes and worry to a stress free financial future.The only way to achieve financial freedom is to take small steps in the right direction, and the economic problem prevention audit is the right first step.
Simply click here to get started. It only takes 7 minutes to fill out the short survey.

P.P.S Have you watched Billy TV yet?. Click here to watch a 5 minute episode. http://billyalvaro.blip.tv/#1037427

Julys Middle Class to Millionaire Newsletter

July is upon us. Along with Independence Day, did you know July is also
Financial Independence Month?

Well, actually it's not, however with the sate of the U.S economy and skyrocketing
Fuel prices, everything under the sun is going up. Except for your income. What a Bummmer.

On 3 seperate occasions This past weekend I was with friends and family. Across the board
all of em was moaning about the high cost of things. They have no money. It costs too much to travel. I went grocery shopping and it broke the bank. yada yada yada.

We'll I’ll let you in on a secret! Members of my Middle Class to Millionaire Inner Circle aren't complaining about what’s going on in the economy. Not in the least bit. They’re all going to their family and friend BBQs with a big smile on their face.

What do my members know, most people don't?

The secret benefits of the economic problem prevention audit.
There laughing all the way to the bank.

Some are saving tens of thousands a year, others, enjoying the debt free life style, even more are banking on paying off there homes with 8 years.

If you want to kick this economy right in the A*S- and laugh all the way to the bank
get off your booty and take action. It won’t happen unless you take the next step.


Anyway, I'm heading out right now with some friends for dinner.

Enjoy your week- have a safe 4th

Expect success
Billy Alvaro

P.S when you’re at the BBQs this weekend listen as most speak about how tough it is. When you notice someone, not saying much, smile on their face- theirs a Good chance they have had their personalized economic Problem Prevention audit...

P.P.S My schedule this week is booked solid as is the early part of next. However if you
Go to www.savemonthly.com/firststep and fill out the form I'll see if I can squeeze you in.

P.P.P.S check out the results Maria and Joel from Staten Island received from the Economic Problem Prevention audit www.savemonthly.com/holderman

P.P.P.S i almost forgot here is the online link for July's newsletter
Its in pdf format

http://www.savemonthly.com/July2008MiddleClass2Millionairenewsletter.com.pdf