Magazine Scams abound

A reader wrote in to Kiplinger's Magazine to say he had already subscribed through 2009 and was still getting renewal notices in the mail. It turned out, he may have been the victim of a magazine subscription scam.

Turns out, a number of companies claim to be able to renew your magazine subscriptions for unbelievably low prices. But none of them actually work with Kiplinger's.

And that's where you have to be careful. Just because a company sends you a "subscription renewal" form in the mail or is on EBay doesn't mean it's legitimate or that it represents the magazine.

The real problem is that magazines have allowed different companies to sell subscriptions at different rates, some of which are less than the cover price or rack rate on their websites or in their own publications. If magazines would offer a "best deal" on their own website, much the way some airlines do, consumers wouldn't have to worry they'll be scammed when they renew.

Credit Card Debt Rising

According to the Federal Reserve Bank, Americans are borrowing more than ever. Revolving debt, which for most of us translates into credit card debt, rose nearly 10 percent during the second quarter of the year. The average family now carries more than $9,300 in credit card debt.

Not only are we borrowing more, but it's costing us more to keep that debt afloat. The average credit card is now charging 13 percent on every dollar you owe. Penalty APR rates are now approaching 40 percent in some cases.

If your spending is out of control, you can do two simple things to cut back. First, drop your credit cards in a bucket of water and stick it in the freezer. It's harder to charge when you have to wait for a block of ice to defrost.

Next, take a second job. If you're working, you'll be earning -- not spending. Then, use that extra cash to pay off your credit card debt as quickly as possible.

Prepayment Penalty Valid?

I got a letter this week from a listener who just realized that the loan she took out last year has a prepayment penalty. She wondered if the 2-year prepayment penalty, which is $18,000 on a loan of $319,000, is legal.

Prepayment penalties have been a bone of contention within the mortgage industry for some time. While many states have outlawed them, federally-chartered lenders claim they follow federal laws that allow them.

Typically, lenders offer prepayment penalties to borrowers in exchange for a slightly lower interest rate on the loan. That may sound great . . . but I think you should take a pass.

The problem with prepayment penalties is that life can change on a dime. You might want – or need – to refinance your mortgage. Most prepayment penalties will kick in whether you refinance or sell, so if you get stuck, it could cost you thousands of dollars.

And you'll never get a lender to waive one.

Independent Traveler.com

With airfare cheaper than driving in some cases, everyone is looking to the skies for a truly great vacation deal.

I've found some interesting deals at the website IndependentTraveler.com, and I've signed up for their free newsletter so I'm alerted to special sales and deals around the world.

Last week's travel bargain featured round-trip tickets to Europe, Africa and the Middle East for less than $500 each.

But in addition to showing me low fares to a particular destination, I like the personal stories and other travel information that are clustered around these destinations. It really helps to know what other travelers think of different vacation destinations.

Expedia does this well by showcasing traveler ratings on different hotels. I recently selected the hotels we'll stay at in Colorado Springs based on their ratings and the deals we found online.

When you find a great travel website, be sure to bookmark it in your online favorites file or use its RSS feeds button for instant information.

Saving on Cleaning Supplies

A few weeks ago, I had the opportunity to listen to Eric Ryan, co-founder of the green cleaning products company, Method, talk about how he started the company.

He said that when he realized how many pollutants were in well-known brand-name cleaning products, and how unregulated the industry is, he decided his company would tell everyone what is inside their products, and that they would be good for the environment as well as good cleaning solutions.

Method cleaners are beautiful to look at, with slick bottles that look great on your countertop. And, I'm all for saving the environment. But I'm also in favor of saving money. These products are expensive, especially compared to the brand name and no-name cleaners you'll find at Costco or dollar stores.

If you want to save the environment while protecting your pocket, think about buying a gallon of white vinegar and cutting it four to one with water to produce a home-friendly cleaner that's about as cheap as you can make it.