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DRIVER'S ED: Hub parking rates 2nd highest

It will hardly come as a shock to the Bay Staters who drive to work every day, but Massachusetts is officially the second most expensive place to park in America.

The Boston Globe reports that only New York City has monthly parking rates higher than Boston’s. By the day, however, Boston’s rate of $33 comes in third compared to New York’s $35 and Honolulu’s whopping $44.

The data comes from a survey conducted by Colliers international property consultants and proves that drivers in Boston pay even more than those in West Coast cities of San Francisco or Los Angeles, where the car is king.

This news, however, has only reinforced what some commuters have known for years. Take the T to work and save the car for your Sunday drives.

On the up side, the average Londoner pays the equivalent of $68 each day to park downtown, and often racks up other charges for entering and leaving the city. In comparison, Boston is a bargain.

Click here for the report.

--Bridget O'Sullivan

CU Advocate's Deals of the Day

Buy.com: 500GB external hard drive $89.99 shipped

Adidas: 20% off select styles

Amazon: iLive portable CD boombox and iPod docking station $79 shipped

PerformanceBike.com: Up to 60% off summer clearance sale

Consumer United: Sign up with our new home security service provider, Brinks, and get free installation on Brinks Home Security standard system. This is a $199 savings off their standard offer. Please say you're a Consumer United member and reference the promo code CCP# 28621. Click here to learn more.

Circuit City furious over 'Sucker City' parody

Circuit City apparently isn't amused by MAD Magazine's "Sucker City" parody.

Mad Magazine placed a four-page spoof called "Sucker City" in its magazine, carried by Circuit City throughout the US. A Circuit City executive ordered MAD magazine to "Immediately remove all issues and copies of MAD Magazine from your sales floor. Destroy all copies and throw them away."

Immediately after the order of magazine removal, Jim Babb from Circuit City's Headquarters sent an apology for the "overly-sensitive souls" who couldn't handle the joke. Jim Babb continued to apologize saying "The parody of our newspaper ad in the August MAD magazine was very clever. Most of us at Circuit City share a rich sense of humor and irony... but there are temporary lapses."

Back to school shopping doesn't make grade

Back-to-school shopping may not make the grade this fall. Sales reports from July show a trend of consumers buying necessities only.

Don't expect a change anytime soon.

According to the New York Times' report, the benefits of the government stimulus check are fading away. Retailers' July sales reports showed a trend of consumers buying necessities and staying away from clothing and accessories. Money is being spent at lower priced alternative and discount stores such as Walmart and Costco Wholesale Corporation.

Ken Perkins, president of research at Retail Metrics states, "Consumers are in a fair amount of pain." This may be true, due to rising food and gas prices, and an economy in the slumps. Apparel stores such as Limited Brands, Abercrombie and Fitch, and Pacific Sunwear of California are not doing well.

Tighter credit, a troubled housing economy and a weakening job market have lowered the consumers' outlook for the economy to the lowest it has been in many years. Projections show that sales will slow in August and into the fall.

Savings 101: Tip to fly for less

Are you sick of paying loads of money to travel by air? Here are four new airline fees... and ways to get around them.

*Beverages
Implemented on August 1, '08, airlines are now charging for soft drinks and bottled water. Paying for a soda seems reasonable. However few consumers are OK with having to pay for a glass of water during a flight, especially since the water on tap is rarely potable.

Solution: Bring an empty water bottle with you through security. Once you are past the security clearance, hit up the nearest water fountain. Bottled water is sold at the airport, but it will probably cost more than on the plane itself.

*Checked Luggage
American, United and US Airways are making you pay for the first checked bag. Their excuse? The rising cost for fuel. According to the CNN report, airlines have been waiting for an excuse to add extra charges for a long time. If fuel costs decrease, the price of a checked bag will most probably stick.

Solution: Continental and Delta Airlines have a free first bag allowance. Try to book a flight on an airline that won't charge you to check a bag. If that's not the case, you could ship your bags, or carry on your bags. Do the math, a $15 charge for a bag might be a bargain compared to what The Postal Service charges.

*Award Tickets
Airlines have added "fees" to award tickets and frequent flier miles, and have raised the number of miles required for free tickets. on August 15, '08, Delta is adding a $25 surcharge for award travel.

Solution: Cash in your frequent flier miles, or use them for something else. Your award tickets depreciate over time, so take the cash.

*Unaccompanied Minors
These fees have always been in place, but the fees are now rising. Alaska Airlines raised its fee from $30-$75. Spirit Airlines raised its fee from $50-$75. Many legacy airlines have raised their fees to $100.

Solution: Accompany that minor this summer. It will probably end up costing the same, and you can take a vacation too. You can also choose an airline with lower fees. Jetblue charges $25 less than big airlines.

CU Advocate's Deals of the Day

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Bluefly.com: Up to 70% off all apparel

CellPhoneShop.net: 80% off clearance sale

Circuit City: Philips audio system with iPod dock $100 shipped

Dish Network: HBO and STARZ free for the first three months. $50 credit on first bill. Platinum HD free for the first three months. Twelve months of Cinemax for 1 cent.

Regional mortgage company under scrutiny

An increasing number of financial institutions are under scrutiny as state and local authorities investigate their lending practices.

The Mortgage Specialists Inc. of New Hampshire, with offices in Peabody and Worchester, received a temporary cease and desist order from the Massachusetts Division of Banks.

The Boston Business Journal reports here that the company cannot issue any new loans and must place all existing loans with a qualified lender or broker.

The Division of Banks became aware that the company was engaging in questionable practices by exaggerating borrowers’ income and fabricating documents in order to generate more loans.

The Mortgage Specialists became a household name around New England once Tim Wakefield, starting pitcher for the Boston Red Sox, endorsed the company.

A period of 20 days has been granted for the company to request a hearing. If they do not, the cease and desist order becomes permanent.

For more information or to read the original story, click here.

Consumer confidence hits all-time low

Is business unstable? The United State's local businesses' view of the economy fell to an all-time low of 35 points in consumer confidence. The lowest in its 17-year history, according to Associated Industries business confidence index.

This could be a clear indication that businesses and consumers are unstable and insecure. Business confidence in Mass. dropped 4.3 points in July to 44.6, the lowest reading in Massachusetts since May '03. This is according to The Associated Industries of Mass. Business Confidence index. Their national survey portrays an even more horrific number, 35. Massachusetts Insight President William Guenther states, "Bad as it is, Mass. is faring better than other places."

According to Mass Insight, a research and consulting firm, the Mass. consumer confidence index dropped to the lowest levels in the survey's history. It has been in a steady decline since April '07, and has dropped down to 50. Mass. looks bad, but it could be worse. The New England consumer confidence index has dropped to 27. Just two points shy of the all time low in October '90.

To read the Boston Globe article, click here.

Housing repair kit is market band-aid

A sweeping house legislation was signed by President Bush July 30, 2008. This housing repair kit is designed to offer incentives for first time buyers and homeowners. With any luck, it will put a band-aid the current housing market.

The housing market needs help. The legislation was primarily created to help mortgage providers Freddie Mac and Fannie Mae, and to put a halt on foreclosures, but it does more that just that. It provides help to first time buyers and raises the mortgage allowances for high cost markets. It also creates tax relief, new disclosure requirements, mortgage help, federal aid, and affordable housing. Representative Barney Frank, Newton Democrat states, "There's enough for some, but not for everybody. If we had more money, we could do more."

The new legislation will provide a $7,500 tax credit for buying a home by next July 1, hoping to increase sales in home purchases. Lenders are now required to disclose the full costs of the loan over its lifetime, including payment increases and other types of adjustable rate mortgages.

More buyers should now be able to access lower cost federal backed mortgages, and Freddie Mac and Fannie Mae federal housing administration will increase loan amounts from $417,000 to $481,000. Communities hit hard will be able to share $4 billion in order to stabilize the neighborhood, and low income housing projects are increasing across the United States.

To read more on the Housing Legislation, click here.

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Starbucks: $2 grande iced drinks after 2 p.m. with morning purchase

Target: Lawn and garden and outdoor furniture 15% off

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VistaPrint: Free business cards, labels and rubber stamp

Dish Network: HBO and STARZ free for the first three months. $50 credit on first bill. Platinum HD free for the first three months. Twelve months of Cinemax for 1 cent.

SAVINGS 101: Track your expenses on Mint.com

With inflation on the rise, the purchasing power of the average consumer’s dollar is dropping quickly. According to the New York Times, consumers’ disposable income, or gross income less taxes, dropped nearly 2 percent in June alone. Adjusted for inflation, this amounts to about a 2.5 percent drop.

Such a rapid tightening of the economic belt has made careful budgeting even more important than it has been for many households. Budgets, however, can be extremely time-consuming to create. An added challenge is that you often have to know roughly how much you’re already spending on each expense in order to cut back.

There is some good news for the consumer, though, because a new wave of online personal banking technology is making budgeting easier than ever before. Most major online banking Web sites offer a “my portfolio” option which keeps track of exactly where your money goes when you shop with a debit card.

Other Web sites, such as mint.com, are devoted exclusively to personal budgeting. Mint.com allows visitors to keep track of all of their finances including bank accounts and credit cards. The site also allows visitors to see exactly where every dollar goes. Best of all, these services are totally free.

If you haven’t already made an online budget, go ahead and try using one. Chances are, you’ll be unpleasantly surprised at how much you’re paying for insurance, utilities, cable, or your cell phone -- just to name a few expenses.

Find the money burner in your budget and see if Consumer United can get you a better deal.

--Bridget O'Sullivan

High price of a free credit report

Looking for a free credit report? Interested in FreeCreditReport.com? Think again.

The site's TV ads feature slackers singing of their life problems and are appealing to a younger crowd. It also has a Web site name that implies the report is free. Little do people know FreeCreditReport.com charges a credit-monitoring service that costs $14.95 a month, automatically taken from your credit card.

Kris Steele remembers these commercials, especially the lyrics that spell out F-R-E-E. Anxious about his credit, he went to the site and signed up for the report. A few months later, he checked his statements and found the Web site was charging him $14.95 a month. Steele doesn't recall seeing anything about this fee and feels duped by the sites faulty name and advertising.

The problem with FreeCreditReport.com is in its advertising. Due to legal issues in the past, it now has a disclosure on its home page saying it's not affiliated with the annual free credit report program. This disclosure is in fine print on the side of the home page, on a subdued background.

This is leaving consumer groups concerned.

The three major credit bureaus, Experian, Equifax and TransUnion are required to offer reports through the authorized AnnualCreditReport.com but the bureaus also make money from their own credit reports. The only authorized site for free credit reports is AnnualCreditReport.com.

To see the NY Times report, click here.

CU Advocate's Deals of the Day

Amazon: 25% or more off kitchen appliances

Iams: Free Iams Premium Protection dog or cat food with your address

CVS: $10 off purchase of $50 or more

PayPal: Up to 50% off for back to school savings

Brinks: Sign up with Consumer United's new home security service provider, Brinks, and get free installation on Brinks Home Security standard system. This is a $199 savings off their standard offer.

'Reduce, Reuse, Recycle' on Freecycle.org

Freecycle.org is an easy way to recycle--especially if you're looking for used goods on the cheap.

This free-trading online network keeps things from going to landfills, so it's great for the environment. One man's junk is another man's treasure and you can find sewing machines, knife sets, plants and just about anything useful.

Leah Ingram spent a lot of money and time on gardening at her home. She had lilac bushes, hardy mums and a butterfly bush that grew to "gargantuan proportions." When it was time to move, she was forced to leave her plants behind because the new residents weren't interested in letting her take the plants with her. Ingram was especially upset a month later when she found out the new residents tore all of the plants up and replaced them with grass.

This time around, Ingram decided to place an ad on freecycle. She instantly received an offer for a small lilac bush, day lilies and two bags of compost soil.

What's the catch? "In some instances I've got to go dig the plants out myself. No problem. I've got a good work ethic and a strong desire to avoid spending money when I don't have to. Sure, I'll spend a little on gas getting to these places, but not nearly as much as I would have paid for mature bushes at a local nursery."

Check out Leah Ingram's blog here.

Mass. residents heating oil bill forecast to hit $3,000

This year, the cost of heating oil is on the rise. The average 2009 oil bill for a Massachusetts household could top $3000 a month. This is a 30% increase from 2007. This year, residents could be paying $1 billion more in heating than in 2007, a very scary thought for a person working from paycheck to paycheck.

The price of oil, and this winter's temperature will hopefully contribute to a drop in price as the temperature drops.

"Maybe the people who are very, very wealthy won't bat an eyelash," says Joseph P. Kennedy II, chairmain of the Boston-based non-profit Citizens Energy Corp to the Boston Globe.

"But for the regular people who are working from paycheck to paycheck and week to week, and don't have anything in the bank account, this is devastating." Kennedy's company provides discounted oil to senior citizens and low-income residents.

CU Advocate's Deals of the Day

REI: Up to 40% off apparel, footwear, and gear

Toys "R" Us: BOGO $20 off all Wii games

Drugstore.com: Up to 50% off back to school supplies

Dell: Save 20% to 30% off Inspiron notebook PCS

Brinks: Sign up with our new home security service provider, Brinks, and get free installation on Brinks Home Security standard system. This is a $199 savings off their standard offer. Please say you're a Consumer United member and reference the promo code CCP# 28621. Click here to learn more.

'Money On Your Mind' Testimonial

Katie Catka, a Somerville resident and featured guest on Belinda Fuchs' new show "Money On Your Mind," chats about her experience working with Consumer United to save money on her auto insurance.

"It was remarkably simple," she says during an interview on the new Somerville Community Access Television show. "Within 10 minutes, they had a quote for me."

Click here for more information.

Senators address student loan crisis

On Thursday, July 31, a group of 39 state senators signed a letter urging Governor Deval Patrick to act quickly to assist the Massachusetts Educational Finance Authority, the quasi-public lending concern that this week announced it has no money for private student loans this fall.

According to reports released last week, more than 40,000 students will be unable to acquire loans this fall.

The Massachusetts Educational Financing Authority is a nonprofit lending authority that has been granting loans to students for 26 years. Last year the authority gave out $510 million dollars in student loans. The loans have a low fixed rate, which is optimal for students attending school in Mass.

This year, 40,000 students will be out of luck because the authority is facing fiscal difficulties. A month ago the authority thought they would be able to find money for private loans, but a bond insurer faced a possible downgrade in its credit rating, causing the loan rates to increase.

Thousands of families are nervous, and are running out of options. The authority is currently contacting the families impacted by the news urging them to seek federally backed loans, then shop for private loans based on the school's recommendation.

Lois Rosenthal of Winthrop adds, "I'm a little dismayed to hear that they won't have money, because it's a jungle out there, getting private loans."

CU Advocate's Deals of the Day

Dell: Xbox 360 Elite bundle for $399

Swell: Up to 75% off on summer goods

Linens 'n Things: Memorex iWake clock radio for $40

Bike Nashbar: Up to 62% off clearance sale

Consumer United: Refer a friend, get $20 if they enroll in a service