The reason most people are in debt today is because they only look at the minimum payment -- totally ignoring the balance on their credit card and also the interest rate the credit card company is charging.
CategoriesCredit & Debt
The recent market has not been kind to the weak-at-heart. Some are afraid to check to see what the market is doing. Here are some survival tips to help you through markets as these.
CategoriesCareer & Economy
The Education Department recently reported an increase in defaults within the first two years of repayment in the fall of 2009 of 7% to almost 9% for the two years ended in the fall of 2010.
More than ever, with new banking regulations, banks want to pitch their products to college students. It seems that a college student's account has a major impact on the bank's earnings.
Before stepping onto campus for the first time, there are three things every Freshman should know about finances. It's important to get aquainted with a these three financial instruments; they'll not only be important throughout college, but the rest of your life. They'll serve you well if you serve them well, but before you can begin to serve them well, you must understand them.
Although the length of your credit history only weighs in at 15% of your score, it is still vitally important. Don't confuse this with your payment history; your payment history is the quality part, while your payment length is the quantity part.
No one truly knows what the full impact of the downgrade will mean; we are in unprecedented territory. The stock market is plummeting as I write this. For sure, it will mean an increase in interest rates on debt issued by the US, which in turn, means an increase in interest rates for the rest of us.
CategoriesCareer & Economy
Although there's still a lot of uncertainty in the housing market, the drop in home prices has made home ownership very alluring. However, you may think you don't qualify for a mortgage. It might not be as bad as you think.
Ah yes, that first time away from home at school. So much free time, so many things to discover, and so much freedom! All these really cool "activities" cost money, so you start spending it; and this is money you don't even have. But, wait! I can put these expenses on my new credit card; they were handing them out like candy, along with a free t-shirt next to the Student Union.
There are several provisions of the 2009 Credit Card Act that are intended to help consumers. Whether these provisions are changing consumers behavior is another matter.
Due to the fact that financial literacy is generally not taught in school, young adults graduating from high school are entering the world not knowing how to handle money properly. CapitalOne conducts an annual survey on the state of financial literacy among graduating high school seniors. This year 40% don't feel comfortable managing their money.
A study conducted at Ohio State University found that adults between the ages of 18 and 27 felt more empowered if they owed money. Remarkably, it wasn't just educational debt that made them feel good, but credit card debt had positive effects on their esteem as well.
While some may find it easy to ask for money, it's not so easy to get the lender to say yes. It's really all about who you ask and how you present yourself.
In a recent workshop someone asked me what I thought the most important financial lesson a kid could learn besides saving money. I told them to teach them about the value of interest and how interest compounds on itself, so the recipient ends up with a lot more money than they started with.
Often times people are confused about the interest rate when shopping for car loans and mortgages. Then they wonder if that rate can be compared to the interest they earn on an investment.
If you're looking for a house, you may first need to look at your bank account. Gone are the days of low, or even zero down payments.
As they say, "Lightning strikes the outhouse as well." Some, and the emphasis is on the word some, card issuers are waiving some of their fees. These include Bank of America, Wells Fargo and American Express.