Saturday, November 21, 2009
Wednesday, October 14, 2009
Beware of Bank of America
"USA Today" reports in today's edition that Bank of America will start charging an annual fee to some of its credit card customers in 2010. The fee will be $29.
Apparently, this fee will be "tested on 1% of its credit card accounts," this according to a spokeswoman for the company. The fee will be applied every February.
To make matters worse, "USA Today" states that even customers "in good standing" face the potential of being charged an annual fee. For those of you who don't know, credit card companies consider those of us who pay "on time" to be "deadbeats." In other words, they can't take any extra money from us on a monthly basis. So evidentally, banks like Bank of America plan to go this route, especially since new credit card legislation, which takes full effect in February, limits how banks levy charges.
So BEWARE OF BANK OF AMERICA!
Apparently, this fee will be "tested on 1% of its credit card accounts," this according to a spokeswoman for the company. The fee will be applied every February.
To make matters worse, "USA Today" states that even customers "in good standing" face the potential of being charged an annual fee. For those of you who don't know, credit card companies consider those of us who pay "on time" to be "deadbeats." In other words, they can't take any extra money from us on a monthly basis. So evidentally, banks like Bank of America plan to go this route, especially since new credit card legislation, which takes full effect in February, limits how banks levy charges.
So BEWARE OF BANK OF AMERICA!
Tuesday, October 13, 2009
'Tis The Season
Hi Everyone!
I'm back and ready to blog!! I'm looking forward to my upcoming seminars about avoiding credit card debt. And now that we are approaching mid-October, it's not too early to talk about holiday spending.
With so many people burdened by the economy, gift giving during the upcoming holiday season may add to their stress levels.........But it DOESN'T HAVE TO! Keep a couple of things in mind -
1) If you haven't already started to put some money aside for holiday spending, that's ok. You can start now. Now, yes, I did just write that people are burdened by the economy, so you might be asking "Why is he talking about saving for the holidays when bill paying is tough enough?"
Well, being a student of "human nature" as much as I am of credit card debt, I know that a lot of people will still spend a significant amount of money on holiday gifts, despite their current economic situation. So it's best to discipline yourself to put away a few dollars a week now for the next couple of months than to wait until December and then worry about where you are going to find the money. THAT'S when people get into real trouble...with their credit cards! They feel they have no other choice but to charge. However, if you save now, you can avoid those dreaded January and February bills.
2) If you feel that you cannot "save" money now, but you know that you are still going to spend that money, then buy those Christmas gifts NOW! At least you will get your shopping done early and you won't have to fight the crowds right before the holidays (or on "Black Friday.") This also gives you an opportunity to plan your spending instead of rushing at the end of the season and potentially overspending on items that you might not really want to by anyway, but were forced to because the "pickings were slim."
With a little bit of planning and discipline, you can have an affordable (and Happy!) holiday season. Remember - you don't have to "keep up with the Joneses." Besides, as Dave Ramsey says, "They're broke too!"
I'm back and ready to blog!! I'm looking forward to my upcoming seminars about avoiding credit card debt. And now that we are approaching mid-October, it's not too early to talk about holiday spending.
With so many people burdened by the economy, gift giving during the upcoming holiday season may add to their stress levels.........But it DOESN'T HAVE TO! Keep a couple of things in mind -
1) If you haven't already started to put some money aside for holiday spending, that's ok. You can start now. Now, yes, I did just write that people are burdened by the economy, so you might be asking "Why is he talking about saving for the holidays when bill paying is tough enough?"
Well, being a student of "human nature" as much as I am of credit card debt, I know that a lot of people will still spend a significant amount of money on holiday gifts, despite their current economic situation. So it's best to discipline yourself to put away a few dollars a week now for the next couple of months than to wait until December and then worry about where you are going to find the money. THAT'S when people get into real trouble...with their credit cards! They feel they have no other choice but to charge. However, if you save now, you can avoid those dreaded January and February bills.
2) If you feel that you cannot "save" money now, but you know that you are still going to spend that money, then buy those Christmas gifts NOW! At least you will get your shopping done early and you won't have to fight the crowds right before the holidays (or on "Black Friday.") This also gives you an opportunity to plan your spending instead of rushing at the end of the season and potentially overspending on items that you might not really want to by anyway, but were forced to because the "pickings were slim."
With a little bit of planning and discipline, you can have an affordable (and Happy!) holiday season. Remember - you don't have to "keep up with the Joneses." Besides, as Dave Ramsey says, "They're broke too!"
Wednesday, August 26, 2009
Suze Orman's Point of View
Hi Everyone,
This week, I decided to feature the opinion of someone who has been in the financial industry for almost 30 years and is well-known to tv viewers and book readers. Suze Orman has a weekly show on CNBC and she has also written several books on personal finance.
Last weekend, Ms. Orman featured a segment called "Suze Orman's Debt Loyalty List."
She listed, in descending order, how she feels certain debts should be paid off.
Here is the list:
1) IRS
2) Student Loan
3) Personal Loan
4) Mortgage
5) Car Loan
6) Credit Cards
Of the credit cards, Suze said, "Credit card debt is unsecured debt." That means, the banks and credit card companies CANNOT repossess anything that you own because you are behind on your card payment. Also, they cannot seize your accounts and rarely does it get to the point where they garnish your wages.
Personally, I address this list because I want you to see that the credit card companies are
NOT the bullies that they pretend to be. They do NOT have any more power over you than you allow them to have.
Think of it this way - with the new credit card legislation that the president has signed into law and all that you are learning from this blog, YOU are the one with the POWER, not the banks and not the credit card companies.
Good job, Suze! Good job, Readers!! Stay tuned.
This week, I decided to feature the opinion of someone who has been in the financial industry for almost 30 years and is well-known to tv viewers and book readers. Suze Orman has a weekly show on CNBC and she has also written several books on personal finance.
Last weekend, Ms. Orman featured a segment called "Suze Orman's Debt Loyalty List."
She listed, in descending order, how she feels certain debts should be paid off.
Here is the list:
1) IRS
2) Student Loan
3) Personal Loan
4) Mortgage
5) Car Loan
6) Credit Cards
Of the credit cards, Suze said, "Credit card debt is unsecured debt." That means, the banks and credit card companies CANNOT repossess anything that you own because you are behind on your card payment. Also, they cannot seize your accounts and rarely does it get to the point where they garnish your wages.
Personally, I address this list because I want you to see that the credit card companies are
NOT the bullies that they pretend to be. They do NOT have any more power over you than you allow them to have.
Think of it this way - with the new credit card legislation that the president has signed into law and all that you are learning from this blog, YOU are the one with the POWER, not the banks and not the credit card companies.
Good job, Suze! Good job, Readers!! Stay tuned.
Thursday, August 20, 2009
Some Changes to Credit Cards Effective Today
Back in May, President Obama signed "The Credit Card Accountability, Responsibility and Disclosure Act of 2009" which will require the issuers of credit cards to present their rules and fees "in plain English" instead of in the convoluted legalise that they have gotten away with for so many years. In addition, they are forced to drop some of their misleading practices, such as delaying the posting of payments that arrive on time so that issuers can charge a late fee.
While the majority of the provisions don't take effect until February 22, 2010, some significant (and empowering) changes become effective today (August 20, 2009). These include that the fact that issuers must mail statements to customers at least 21 days before the payment is due. Also, issuers are required to provide 45 days notice before increasing annual percentage rates or changing terms of agreement on the account - this is a big deal! Up to now, the issuers had to provide just 15 days before these increases and changes took effect.
Not surprisingly, credit card issuers were not happy with the president's decision to help consumers and immediately tried to make financial lives tougher while they could. According to Adam Levin, chairman and co-founder of credit.com, "several card companies have been increasing fees, reducing credit limits, raising rates, boosting minimum payments and dropping customers with high balances."
Personally, I had an experience a few months ago where one of the card companies cut my available credit in half, largely because I don't use the card very often and when I do, I pay it in full. They don't like that - they call those of us who pay off our balances "deadbeats." So, I called them right away and told them that I wanted my available credit reinstated at its full amount and because I have an excellent payment history, they had no option but to do what I wanted. Basically, they did not want to risk me leaving them and going elsewhere. Hey, I may not use the card a lot, but they figured it's better that they get some money from me sometimes than no money ever!
Come mid-February of next year, the other changes in the law will take effect, namely
*If a card has a balance at varying rates, payments must go towards the higher rate first.
*If the interest rate on the card goes up, it cannot be applied to an existing balance. It can only
be applied to new purchases.
*Double cycle billing will be prohibited. In the past, companies would take the average daily
balance from both the current month and the previous month and calculate finance charges.
(DID YOU KNOW THAT?)
*Also, and I like this one A LOT, marketers cannot hawk students who are less than 21
years of age without a parent's signature of unless the card company can PROVE that
the student earns enough money to pay the bill.
These are some of the main things to be aware of. As we move closer to the full
implementation of the law on February 22, 2010, I'll keep you posted on other significant changes and happenings.
For now, my advice is to follow the tips and pointers I've provided in the posts written to date and check back weekly for more valuable advice as together we get you OUT OF CREDIT CARD DEBT!!
While the majority of the provisions don't take effect until February 22, 2010, some significant (and empowering) changes become effective today (August 20, 2009). These include that the fact that issuers must mail statements to customers at least 21 days before the payment is due. Also, issuers are required to provide 45 days notice before increasing annual percentage rates or changing terms of agreement on the account - this is a big deal! Up to now, the issuers had to provide just 15 days before these increases and changes took effect.
Not surprisingly, credit card issuers were not happy with the president's decision to help consumers and immediately tried to make financial lives tougher while they could. According to Adam Levin, chairman and co-founder of credit.com, "several card companies have been increasing fees, reducing credit limits, raising rates, boosting minimum payments and dropping customers with high balances."
Personally, I had an experience a few months ago where one of the card companies cut my available credit in half, largely because I don't use the card very often and when I do, I pay it in full. They don't like that - they call those of us who pay off our balances "deadbeats." So, I called them right away and told them that I wanted my available credit reinstated at its full amount and because I have an excellent payment history, they had no option but to do what I wanted. Basically, they did not want to risk me leaving them and going elsewhere. Hey, I may not use the card a lot, but they figured it's better that they get some money from me sometimes than no money ever!
Come mid-February of next year, the other changes in the law will take effect, namely
*If a card has a balance at varying rates, payments must go towards the higher rate first.
*If the interest rate on the card goes up, it cannot be applied to an existing balance. It can only
be applied to new purchases.
*Double cycle billing will be prohibited. In the past, companies would take the average daily
balance from both the current month and the previous month and calculate finance charges.
(DID YOU KNOW THAT?)
*Also, and I like this one A LOT, marketers cannot hawk students who are less than 21
years of age without a parent's signature of unless the card company can PROVE that
the student earns enough money to pay the bill.
These are some of the main things to be aware of. As we move closer to the full
implementation of the law on February 22, 2010, I'll keep you posted on other significant changes and happenings.
For now, my advice is to follow the tips and pointers I've provided in the posts written to date and check back weekly for more valuable advice as together we get you OUT OF CREDIT CARD DEBT!!
Wednesday, August 19, 2009
Protect Yourself
These days, it seems that identity theft is all too common. Part of being responsible with credit cards is being aware of where they are at all times and being aware of where we are using them.
In some cases, unfortunately, identities and credit card information can be stolen, even if we have done everything possible to be protected. Such is the case with a Florida man who was just indicted (for the third time) for allegedly stealing data from over 130 million credit and debit cards. He has hacked into computer networks of stores and restaurants, such as T.J. Maxx, Marshalls, Barnes and Noble, 7-Eleven, and Dave and Buster's, among others.
It is highly advisable to check your accounts regularly, like once per week, to make sure that no illegal activities have occurred. If something unethical has happened, contact your credit cards immediately, put a freeze on your credit reports, and contact the authorities immediately.
We have to be proactive in ALL ways when it comes to our credit...and our identity.
In some cases, unfortunately, identities and credit card information can be stolen, even if we have done everything possible to be protected. Such is the case with a Florida man who was just indicted (for the third time) for allegedly stealing data from over 130 million credit and debit cards. He has hacked into computer networks of stores and restaurants, such as T.J. Maxx, Marshalls, Barnes and Noble, 7-Eleven, and Dave and Buster's, among others.
It is highly advisable to check your accounts regularly, like once per week, to make sure that no illegal activities have occurred. If something unethical has happened, contact your credit cards immediately, put a freeze on your credit reports, and contact the authorities immediately.
We have to be proactive in ALL ways when it comes to our credit...and our identity.
Friday, August 14, 2009
Parents and Kids, LISTEN UP!!
While this post is not exclusively about credit card debt, it does play a role in what you are about to read.
On a couple of occasions, I have addressed the problem of instant gratification, of the "I want it and I want it NOW" mentality. The main problem is that we don't develop patience nor do we establish a work ethic in order to provide for the "want." This is an issue for adults and children. To make matters worse is that undisciplined (financially) parents cannot teach constructive money habits to their kids.
Recently, Dr. Phil had what I consider to be one of his best television programs called
"How To Talk To Your Kids About Money." The primary guests were parents named Lori and Chris and their 15 year old daughter, Kati. I'll start by saying that the parents admitted that they "have trouble saying no" to their daughter and she admitted that she "likes to manipulate the situation" in order to get what she wants. This is a recipe for DISASTER!! To put it in numbers, the parents spent $27,289 in just 2 years to satisfy their daughters' materialistic desires.
The financial mess is easy to recognize. But on a deeper (rational) level, the problem is that neither the parents (especially the mother) nor the daughter take full responsibility for this situation. Lori (mother) makes excuses for this wasteful spending, claiming that Kati "makes good grades," as though As and Bs should equate to thousands of dollars. If that were true, I would have been a millionaire by the time I got out of high school. Then, ironically, Lori says that Kati "spends too much money." DUH! From whom does she get the money?!?
Dr. Phil addressed the issue directly, as he often does, when he said, "The parents are not willing to step up" and that "Overindulgence is the most insidious form of child abuse." Simply put, the parents have trained their daughter to beleive that if she simply puts her hand out, she will eventually get what she wants. I pity her future spouse, significant other, etc. This habit is hard to break.
Ultimately, it was determined that the father brings home $6,000/month (net), but by the time that the bills are paid and Kati's "stuff" is bought, there is only $240 left.
There are so many things wrong with this situation. To make matters worse, this is not an isolated situation. There are MANY American families that are living in debt (largely credit card) because parents cannot say NO to their kids. And it's really NOT that hard....
kids frequently say no to their parents!! So maybe parents can learn from their kids!
On a couple of occasions, I have addressed the problem of instant gratification, of the "I want it and I want it NOW" mentality. The main problem is that we don't develop patience nor do we establish a work ethic in order to provide for the "want." This is an issue for adults and children. To make matters worse is that undisciplined (financially) parents cannot teach constructive money habits to their kids.
Recently, Dr. Phil had what I consider to be one of his best television programs called
"How To Talk To Your Kids About Money." The primary guests were parents named Lori and Chris and their 15 year old daughter, Kati. I'll start by saying that the parents admitted that they "have trouble saying no" to their daughter and she admitted that she "likes to manipulate the situation" in order to get what she wants. This is a recipe for DISASTER!! To put it in numbers, the parents spent $27,289 in just 2 years to satisfy their daughters' materialistic desires.
The financial mess is easy to recognize. But on a deeper (rational) level, the problem is that neither the parents (especially the mother) nor the daughter take full responsibility for this situation. Lori (mother) makes excuses for this wasteful spending, claiming that Kati "makes good grades," as though As and Bs should equate to thousands of dollars. If that were true, I would have been a millionaire by the time I got out of high school. Then, ironically, Lori says that Kati "spends too much money." DUH! From whom does she get the money?!?
Dr. Phil addressed the issue directly, as he often does, when he said, "The parents are not willing to step up" and that "Overindulgence is the most insidious form of child abuse." Simply put, the parents have trained their daughter to beleive that if she simply puts her hand out, she will eventually get what she wants. I pity her future spouse, significant other, etc. This habit is hard to break.
Ultimately, it was determined that the father brings home $6,000/month (net), but by the time that the bills are paid and Kati's "stuff" is bought, there is only $240 left.
There are so many things wrong with this situation. To make matters worse, this is not an isolated situation. There are MANY American families that are living in debt (largely credit card) because parents cannot say NO to their kids. And it's really NOT that hard....
kids frequently say no to their parents!! So maybe parents can learn from their kids!
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