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.
Last week we discussed how your credit history accounts for 35% of your FICO score. The next biggest component comprising your score is the amount of debt you have which comprises 30% of your score. That means nearly two-thirds of your credit score is made up of your history and your amount of debt.
Conventional wisdom is you're better paying off your own mortgage than someone else's, which is what you're doing when you're renting. However, as we've seen in the last couple of years, the housing bubble burst and perhaps this isn't true anymore as we've witnessed house prices plummeting in certain areas of the country.
Due to the recession, households have been holding back on spending. A weak job market has made people afraid to spend; a weak housing market has made many people feel less wealthy and therefore reluctant to spend, and with the recent increase in gas prices consumers don't have the money to spend on other things. The National Foundation for Credit Counseling conducted a poll; 66% of respondents said they were suffering from "frugal fatigue." Retail therapy, here we come...
Your FICO score ranges between 300 and 850; the higher your score the more likely you'll get charged lower interest rates on loans, you'll have lower insurance premiums and you'll get a job. The best way to improve your FICO score is to focus on your history.
Much to your horror, you may be surprised to find that your doctor bill can continue to cost you long after you've paid it.
Identity theft is not just for adults. Nearly one in four Americans have experienced identity theft of some type. Unethical online businesses find inactive social security numbers belonging to children and sell them to people who need to establish fake credit.
More and more, ecommerce is becoming a part of our everyday lives. We buy things from all kinds of merchants online from Sony to mom-and-pop-type stores; these transactions are subject to hackers that want to obtainl our sensitive information and steal our identity.But, there's a solution right at hand, or, right IN hand.
I'm often asked if debt cosolidation is a good thing. First of all, debt consolidation involves a whole lot more than simply making a single payment. There are actually two types of debt consolidation: Debt Management Plans (DMP) and Settlement Plans. Which one is best for you depends on your situation.
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.
If you've declared bankrupcty, you now have a second chance to have a clean life... credit-wise, that is; don't blow it! You have to strategize so you can make the most of this "second chance." Here are five important steps to take:
Were you surprised to find that your bank was charging a fee for something you either thought was free, or used to be free? Guess what? Banks are now unbundling services and charging for them. You may not know about it until you're charged. The key is to call the bank immediately; you may be able to get the fee reversed.
The 2009 Credit Card Act was passed to help consumers. But as it has turned out, there are terrible unintended consequences of the act.
We live our lives around what we're taught growing up. Sometimes we will start to believe differently when we experience the real world and realize some of what we've been taught really doesn't make sense. Many beliefs around money are learned early in life and sometimes we just can't shake them.
Many people ask if it helps to pay off old debt. It will help if you want to fulfill your moral obligations.
Nothing.
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.
Yes I know college is a lot more expensive today than it was back in the days of covered wagons, when I was attending The University of Virginia. However, in order to better understand the situation, let's first talk about how students get into debt in the first place; there is a fundamental phenomenon for the cause.
Yep, let's go one step further in financial planning: financial planning with your marriage in mind. You know clear communication is crucial to any relationship. And when communication breaks down, so does the relationship. Lack of communication is the reason more than 50% of marriages end in divorce. And, lack of communicating about finances holds the majority of those cases.
It's sometimes hard to find the cash we need, especially these days. Many people have been borrowing against their home. Only on rare occasions is this the wise thing to do.
