May 7th, 2010
Consumer Spending Back Up! Plus, Tips For the Savvy Spender
Have you been opening your wallet and dipping into your savings lately? A new government report shows that recent jumps in spending rates isn’t so bad after all, and in fact, is helping our economy.
A government report confirms robust spending growth for the sixth straight month, up 0.6% in the month of March. Retail sales also rose 1.6% in March, the highest number in the past months. This marks consumer spending at a three-year high, and with consumer spending making up about 70% of the U.S. economic acsavtivity, these numbers signal recovery. Growth in consumer confidence and spending means more hopeful signs of an economy getting back on its feet.
April 5th, 2010
Monday Jumpstart to Personal Finance & Credit Report News
With 10 days left before the April 15 deadline to file your taxes, are you prepared or are you still scrambling? Don’t worry about that due date, reports CNNMoney, because it likely won’t cost you any penalties or charges to submit your return late. If you are confident there is no tax due on the return (90% of all returns processed thus far that have averaged a $3,036 refund), you probably don’t have to rush to meet the deadline. However, if you aren’t getting a refund and need to pay up, you could face major consequences for not submitting on-time, as much as 5% interest on the amount owed for each month you fail to file your tax return. If you are unsure of your refund status, make the smart move and file on time, or file an extension. Make sure to file your taxes as soon as you possible, or you might end up forfeiting your refund to the IRS.
For more topics to boost your personal finance and credit know-how, check out today’s round-up!
March 29th, 2010
Monday Jumpstart to Personal Finance & Credit Report News
A new financial-reform proposal announced on Capitol Hill could create sweeping changes in the world of consumer credit, including benefits for consumers like added restrictions on credit card fees, expanded financial education, eliminating forced arbitration, and more changes to “close old loopholes”.
This new reform proposal could also potentially limit consumers’ options and tighten credit, as well as lead to fewer financial innovations by slowing the output of new products and services due to added red tape on the financial sector. Read more on this potential bill that may give the economy yet another makeover.
Catch up on this week’s personal finance and credit news with today’s roundup.
February 5th, 2010
Valentine’s Day Budgeting ~ In Love But Not In Debt
Valentine’s Day is just around the corner, and in our current recession, consumers are not planning on putting Cupid on a budget this year. A recent National Retail Foundation poll found that shoppers plan to spend $103 on Valentine’s Day this year, up 50 cents from last year.
Is it possible to celebrate love and frugality this Valentine’s Day by showing without breaking your budget? We say YES! Whether you are the creative type, an old-school romantic, or an anti-Valentine’s Day activist, here’s a top list for how to spoil your loved ones—friends, family, or sweetheart—in wallet-friendly ways:
February 3rd, 2010
Wednesday Trends in Credit Cards & Debt
“The CARD Act finally protects consumers against the credit card industry’s most abusive practices: Yes AND no,” writes The Washington Post. The Post debunks five myths about America’s credit card debt, discussing how credit card legislation won’t magically fix everything, and even while a credit-scarce economy has pushed cardholders to switch to debit, America is still largely a plastic-carrying consumer society. For more credit card news and debt help, including blogs on more effective debt-reduction strategies, this week’s roundup has it all.
January 5th, 2009
Your First Credit Card – The Unwritten Rules
It seems that in America, living on credit is the way of life. Making purchases with our plastic when we are all out of paper is all too tempting. Credit cards make living easier, but that can change in a heart beat if the cards get misused. Using the card without thought can pile on the debt way beyond what you may be able to handle. It is all too easy to get a credit card thanks to the numerous pre-approved offers that we are sent. Rewards programs mask the fee and interest rates that are hidden the fine print. These can be changed at the whim of the creditor, but it is seductive when they are willing to give you card after card.
One can protect themselves by preparing before getting a credit card. You can avoid digging yourself an inescapable financial hole by considering the unwritten rules. Talk to family and friends about how to rightly use a credit card, as they can be good examples to learn from. This is true more so if their credit is spotless. If their credit is poor, then they are still worth learning from in terms of what not to do and how to avoid the problems that they got themselves into.
Make a budget and have a place in it for the credit card. This can be a simple as a ledger sheet or spreadsheet where you list where your money is coming from and where it is going. Using this sheet as a guideline, you can figure out how much you can spend on the card, taking into account anywhere from 10 to 30% interest. Pay off the card completely every month, debt that sits there costs you money. Prioritize your bills, putting food, electricity, heat and rent well before your credit card. If you have little remaining money, try to avoid using your new card except for the dire emergency.
If you already have debt, then attack it immediately. Call creditors, explain your situation and see what they can do to help you in this situation. Some may give you time, while others will lower the minimum for payment. If you are being seen as making the effort to fix the situation, then you can establish a good relationship with your creditor. Keep them up to date on contact information and do not make it a chore for them to contact you. Be proactive in fixing your debt and contacting your debtors and informing them that you care about the situation. That way they will not feel the need to hassle you.
There are a number of routes one can go with a credit card, and it is a mistake to treat it as free money. Learn from your friends and relatives, despite their score being good or bad. Stay within what you can afford, and if you fall behind, stay in touch with your financial institutions, and you will find credit cards much easier to have and keep.
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December 3rd, 2008
Five Great Ways To Get Out of Debt
For those that are facing a mountain of debt, it can seem almost impossible to find a way out. However, there are strategies that you can employ to help you get out of debt quickly and easily. We’ve identified five ways that you can start reducing your debt, starting today.
1. Get a low rate consolidation loan.
This is the best option for those that have many different credit cards with high interest rates that are getting out control. By taking quick action, before those cards become delinquent, you can reduce the risk of having your credit score be adversely affected, and you’ll be spending less money on interest. It is however vital that you read the terms of this loan very carefully. In many cases, you may end up spending more over the long term, especially if you get a loan for more than five years. However, if you need a fast solution to get those cards paid off, this is typically the easiest way.
2. Start with the worst card and work your way through.
If you can pinpoint which credit card is causing the most problems, you can start paying that one down and then move through the rest. You’ll need to keep making at least the minimum payments on your other cards. Find the card with the highest interest rate or the highest balance and focus on getting that balance down to a manageable level.
3. Check your spending.
In many cases, people end up in debt simply because they are not controlling their spending. You can start by making a budget for each month. See how much money you have coming in and then compare that to how much you spend. Work on reducing your outgoing money that is eating away at your income by getting rid of any nonessentials. This will quickly free up money that can in turn be used to pay down your debts.
4. Get a second job briefly.
In some cases, the only quick way to get out of debt is to increase your income enough so that you can pay off what you owe. Getting a second job is the easiest way to do this in the short term. Just make sure that you take that paycheck and immediately apply it to your debts, to reduce the chances of spending it on other things. If this doesn’t appeal to you, find other ways to set up another stream of income to give you enough cash flow to pay down what you owe.
5. Renegotiate your terms.
If you have a good payment history with a creditor, they may be willing to renegotiate your interest rate. On a high balance credit card, every point you can reduce will help and this can have a dramatic impact on what you owe overall. The worst thing they can say is no, so it is worth a try to ask for a lower rate. Many creditors will agree to at least a small reduction.
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October 24th, 2008
Recession Proofing Your Life
Right now there is a lot of talk about a recession. The financial buzzword that is out there this month is “Recession” and for good reason. It has become increasingly vital that as American citizens, we begin to understand how we can properly safeguard ourselves against the risk of a potential downturn in the economy. Obviously there are no real guarantees in life, but there are numerous healthy and advantageous steps that can be taken in order to mitigate your losses during any financial turbulence that should occur in the near future. Here are some steps that you can take to recession proof your life.
Clean your finances up.
It is time for you to get serious about your financial health. Look at your budget this month and start cleaning everything up. Decrease your debt slowly but surely, and work to find friendlier credit lines and ways to increase your cash savings and emergency fund savings. By reducing unnecessary expenses and increasing cash savings, you can safeguard against the occurrence of becoming financially strapped.
Focus on creating a financial plan.
If you have a plan, focus on it. If you do not have a plan, put together a one year, five year and ten year financial plan and tweak it over time to ensure that it is meeting your needs.
Make yourself invaluable in your profession.
If you become invaluable at work, it will be much harder for you to find yourself laid off during a recession. Some people are laid off without any warning, but if you can increase your role at work in any way, do so now and you may be spared.
Figure out a way to earn real money.
Can you further supplement your income in any way? If so, now is the time to start thinking long and hard about these opportunities. Consider obtaining a second job, or some other form of part time work that will allow you to increase your bottom line. This is the best way to prepare yourself for a recession, in case you have no idea where you’ll be when the economy takes a turn for the worst.
Think ahead and plan accordingly.
Above all, keep in mind that “this too, shall pass.” Think about the future and work on learning from the past. Think ahead and plan accordingly and you should have no difficulty overcoming the recession with the shirt still on your back. A recession does not automatically mean that your finances have to go south, but the more prepared you are, the better off you will find yourself when the waves die down and things go back to normal, so keep that in mind when recession proofing your life.
There is no way for you to completely and fully protect yourself from a dip in the growth of the economy, but there are plenty of ways to ensure your survival during this period with as little turbulence as possible.
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