Archive for December, 2008

From New York to Seattle to Santa Monica, “Private Practice’s” Addison has certainly traipsed across the continent in the past few years. When Addison Montgomery was first introduced to America, she was Derek Shepherd’s wife, tracking him to Seattle during a messy separation. In “Private Practice,” Addison has taken Santa Monica by storm and attempted to get her personal and professional life back in order. But is one of the world’s foremost neo-natal surgeons really able to keep up with the expense of living in Santa Monica, California? Even if she comes in with no credit card debt, you might be surprised to learn the truth.

Who is Addison Montgomery?

According to ABC, “Private Practice’s” Addison is a renowned neonatal surgeon and “board-certified OB/GYN, having completed fellowships in maternal-fetal medicine and medical genetics.” She moved to Santa Monica, California, in 2007, from Manhattan, by way of Seattle, where she ran a top-class NICU and was a star surgeon at Seattle Grace and in “Grey’s Anatomy.” According to Allied Physicians, neonatal medicine roughly brings in between $286,000 and $381,000 depending on the experience level of the doctor. In Addison’s case, and since she is regularly referred to on both “Grey’s Anatomy” and “Private Practice” as one of the top neonatal surgeons, it’s logical to assume that she makes approximately $300,000 to $350,000 a year. There’s never been any indication during “Grey’s Anatomy” or “Private Practice” that Addison has any debt, credit card or otherwise, and it appears that she is doing well for herself financially

What’s the Cost of Living in Santa Monica?

Santa Monica, the setting for the private practice that Addison works at, is one of the more expensive areas in the United States to settle in. According to Salary.com’s Cost of Living Calculator, the cost of living in nearby Los Angeles is 24.3 percent higher than in Seattle. So even for Addison, a skilled and renowned surgeon, it’s evident that she would have been making a bit less money after a move to California from Seattle.

In addition to the fact that Addison would be making a slightly smaller salary (also relative to the smaller workload she incurs at a small practice), Santa Monica’s home prices are considerably more than those in Washington. According to Yahoo Real Estate, the median home value in Santa Monica is $1,653,381. Remembering that Addison owns a large and beautiful home on the water, it’s reasonable to assume that her home probably cost in the vicinity of $2,000,000, and potentially more.

Could Addison Swing It?

Though it might seem like Addison is good to go, in fact, she’d be hard pressed to make it work while still saving money for retirement and expenses. Typically, you should spend no more than one-third of your gross salary on your mortgage. So, if Addison is making $350,000 a year, she wouldn’t want to spend more than $116,666 a year on her mortgage, which is approximately $9,722 a month. However, the Mortgage Calc calculator estimates that a home of $2,000,000 with a 30-year mortgage and a 5.75-percent interest rate would cost Addison approximately $11,671 a month. Even if she had money to put down on the house, it could be a tight squeeze for her to live and spend at will in posh Santa Monica society without the use of credit cards. Add in fancy parties, clothes, shoes and handbags, all of which seem to simply appear for Addison, and it’s pretty obvious that she’s either using a credit card or you’re watching television.

Even doctors and surgeons don’t have it easy these days. Before we’ve even talked about malpractice insurance and health insurance companies, a doctor making $350,000 might be hard pressed to keep up with the Joneses in a well-to-do part of town. Even a doctor making a decent wage might not be able to live up to television’s standards. Watch Addison’s spending and lifestyle on “Private Practice” with a grain of salt - even the best credit cards in her wallet might be getting more of a workout than it appears.

Kelly Herdrich

Holiday shoppers need to watch out this year for yet another red flag that might indicate fraud. Gift cards purchased with stolen credit cards have been sold online as a tool for money laundering.

Picture this: Your credit cards are stolen. The thief then uses your credit cards to purchase gift cards from Wal-Mart, Target or any other store. He doesn’t want to actually use those gift cards because they might have been flagged as fraudulently purchased, so he sells them on eBay or Craigslist or any other Web site for a discount off the actual face value of the cards.

Consumers think that they’ve found a hot deal when they purchase a few gift cards at 50 percent of their value, but are shocked to discover that the cards are useless. The original card holder has reported his credit cards stolen, which has subsequently flagged the gift cards. If you fall into this trap, you’ve just put money in a scam artist’s pocket.

The beauty of this scam is that regular consumers with no thought of deception sell gift cards every day. They receive cards from stores where they are unlikely to shop, so rather than letting them go to waste, they sell them at a discount online so they at least walk away with some money they can use. So how can you tell the scam artists from people who just received gifts they didn’t want?

A big red flag is the sale of numerous gift cards at once or over a short period of time. This is a serious indicator that the seller is using stolen credit cards to fund his sales, and you should at least consider that he might be into money laundering. Check out the seller’s past history if you’re using an auction Web site such as eBay, and stay clear of him if most of the previous sales have been gift cards.

Money laundering might also be afoot if you find gift cards for sale that are significantly discounted. Since the seller is using stolen credit cards, he wants to dump the gift cards as quickly as possible. To facilitate the sales, he might mark them down by as much as 75 percent; why would a legitimate seller take that much of a hit?

This holiday season, you might be better off paying full price for gift cards at individual retailers rather than purchasing them online. Stolen credit cards are a serious problem in this day and age, and you don’t want to help money-laundering scam artists — even unwittingly — to line their pockets.

See also: Online Resale of Gift Cards Raises Fraud Alarms, ABC News

Steve Thompson

To further their careers and increase their paychecks, some people go back to school for advanced degrees or work overtime in the hopes of earning a promotion. A higher salary means additional disposable income and prestigious platinum level credit cards that offer better rewards.

Former U.S. Marshall Jack Carter, the everyman hero on the television series “Eureka,” got his promotion purely by accident. An unplanned detour into a small town led to a new job, a higher salary and more spending power.

Running Off the Road into “Eureka”

In addition to their other duties, Federal Marshalls apprehend fugitives and transport prisoners, which Carter did in the very first episode of the series. Unfortunately, the young woman in his custody was none other than his rebellious daughter Zoe, who had run away from home.

While arguing with his child, Carter ran off the road and damaged his vehicle. He and Zoe then walked to the nearest town, a picturesque place in the Pacific Northwest called Eureka. Marshall Carter hoped to simply get his car repaired and take Zoe back home where she belonged.

During his stay, Carter discovered that Eureka actually contains some of the most brilliant scientific minds on the planet who develop new and innovative devices. With so much experimental technology, this town does, however, have one of the highest mortality rates in the country plus several government overseers.

From Federal Marshall to Eureka’s Sheriff

Though he may seem clueless at times, Jack Carter actually is quite good at his job, so good in fact that he ends up becoming Eureka’s new sheriff. This was a promotion from his Federal Marshall position that came with an increase in pay and pretty decent health benefits.

According to the Masters in Criminal Justice Web site, entry level Deputy Marshalls (GS-082-5) bring home between $36,658 and $41,260 each year and qualify for pension benefits. More experienced Marshalls (GS-082-7) can expect to earn as much as $46,969, but Carter’s gross income for his new job should be somewhere in the $50,000 to $60,000 range plus hazardous duty pay.

The Homeless Marshall

After taking his new position, Carter had to move from Los Angeles to Eureka, but there was no place for him to stay except for his office. Douglas Fargo, one of the local scientists, eventually let the new sheriff live in a prototype “smart house” guided by an artificial intelligence named SARAH. In exchange for testing the house and SARAH, Carter gets to stay there rent free.

What’s in Jack’s Wallet?

Despite his unusual job, Jack Carter is, at heart, a man who enjoys simple things like beer and baseball. He most likely has arranged to have his government paycheck deposited directly into his bank account, which he accesses with a debit card to purchase his favorite snacks, food and beverages.

In addition to groceries, Jack does take several meals at the Café Diem, the local Eureka eatery where Vincent, the head chef, can make just about any dish imaginable. Carter favors basic meals, though, like cheeseburgers and fries, which means he spends about $8 for lunch. The coffee always is free, however. It’s highly likely that Sheriff Carter also carries several credit cards to pay for his dry cleaning and other basic purchases required for his job.

The Out-of-Work Sheriff

The latest episode of “Eureka” ended with Carter losing his job as the town sheriff. Because Eureka is a government facility, Jack will have to leave town and return to his old job in Los Angeles. Unfortunately, he’ll lose the additional pay that the sheriff’s job gave him, which may have a detrimental effect on his credit rating and spending power.

If anything, credit cards have become more difficult to compare than ever, especially if you are looking at rewards credit cards. However, if you don’t take the time to evaluate each card for all of its features, you could be missing out on rewards that actually fit your lifestyle. Some credit cards have excellent rewards with high interest rates, while others carry annual fees or have limitations on how you can use those rewards. However it is important to note that rewards programs are not for people who carry a balance. The interest you’ll be paying will quickly exceed the the value of the benefits. You must pay the balance in full every month.

Hilton HHonors Platinum

One of the most popular hotel rewards credit cards is the Hilton HHonors Platinum, which carries no annual fee and requires excellent credit for approval. As you might have guessed, this card is affiliated with the Hilton family of hotels, so purchases on the card translate into points that you can redeem for free hotel stays.

When you make your first purchase with the Hilton HHonors credit card, you get an automatic 10,000 rewards points to start you off. This is enough to pay for one free night at a Hilton hotel, which is an attractive bonus. However, every subsequent qualifying purchase (hotel stays, gas, supermarkets, drug stores) earns you only 5 points, so it will take another 2,000 purchases to earn another free night.

This particular hotel credit card might be worth it if you intend to make several qualifying purchases every week, and if you tend to stay in Hilton hotels for business or pleasure travel.

Wyndham Rewards MasterCard

Another option for hotel rewards points is the Wyndham Rewards MasterCard, which is issued by Bank of America and has a lower APR. The rewards points are established differently from the Hilton HHonors. You earn 13 points for every dollar spent on qualifying hotel stays, plus two points on every dollar spent with every other purchase.

The types of hotels you can patronize to earn and redeem rewards points include Travelodge, Super 8, Ramada, Days Inn and Wyndham Hotels, but the difference is more in the numbers. With this rewards credit card, you earn points with every purchase you make, and more points when you stay in these hotels. Additionally, the lower APR will be beneficial to cardholders who tend to carry a balance.

Capital One No Hassle Miles Rewards

Airline credit cards are even more popular than hotel-linked credit cards, and there are more of them from which to choose. The Capital One No Hassle card is one such option, offering no annual fee and a midlevel interest rate. When you use this card for any purchases, you earn 1.25 miles for every dollar spent.

There are no blackout dates on this card, even on holidays, and your airline miles never expire. Also, there are no limits to the number of miles you can earn in a given time period. This is probably the major benefit to this card, as many airline miles rewards cards have expiration dates on each of the miles you earn.

Don’t Forget to Use the Rewards

Many reward programs expire. The fine print obfuscates the expiration date, but it is noted somewhere. Be sure to know when points or miles disappear, and don’t be afraid to use them.

However the rewards you earn may not belong to you. Some government agencies lay claim to anything solid or intangible “that is purchased with Government funds.” If your credit card is a corporate credit card, any rewards or frequent flyer mileage may belong to the company. Be sure to check your company’s policy before redeeming rewards.

Comparing rewards credit cards should be a high priority when shopping for a new card. Consider the types of rewards that will benefit you most, as well as the specifics on earning rewards and the interest rate. In some cases, high APRs, annual fees and other convenience fees will overshadow all benefits of the card.