Are you owed money? How to Find Unclaimed Money

Head over to MissingMoney.com and check out to see if you have any unclaimed money out there. Today on a whim I decided to check out this website and by the time I was done I found $100 that was owed to me and $150 that was owed to my wife. The money that was owed to me was from an old dental insurance claim that I overpaid. My wives unclaimed money was a combination of a paycheck that she never claimed when she was working in college and a really old saving account from 15 years ago.

The website, Missingmoney.com is very easy to navigate, just enter you name and state and hit search. Remember to check all states that you have ever lived in and ladies, if you have gotten married don't forget to check under your maiden name as well. All of my wives unclaimed money was under her maiden name. Each state has their own claims procedure- with most states you will need to print a claim form and send it back with documentation showing that you are who you are and that you have the right to claim the money.

It's a lot of fun! So log on today, you have nothing to loose, only money to gain!

Financial Motivational Quote June 25, 2009

"In 1973, a woman could not get a credit card without her husband or father or a male signing off on it."- Billie Jean King

Breaking News: Michael Jackson Dead at 50 from cardiac arrest.

Shocking news that the self proclaimed King of Pop Micheal Jackson has passed away from cardiac arrest. Aside from his problems with his private life his musical talent had at one time made him one of the financial elite.

Breaking album selling records and escalating his wealth from these sales he built his dream home at Neverland Ranch. Named after the fictional home of Peter Pan, who never wanted to grow. This mirroring Michael's life as he explored the wonderment of being a child even though he was a full grown man.

It's shame for the world to lose such a musical talent aside from his accused private life of assorted affairs. Let's this be a reminder that wealth is an awesome thing, but it can also be taken away not only through life choices, but through our own immortality. RIP Michael Jackson.

Financial Motivational Quote June 24, 2009

"High bankruptcy rates, increased credit card debt, and identity theft make it imperative that all of us take an active role in providing financial and economic education during all stages of one's life."- Ruben Hinojosa

How Can I Pay Off High Interest Credit Cards If I Don't have The Money?

Call the credit card company and renegotiate your interest rate. Many credit card companies would rather lower their interest rates or cut out annual fees or late charges than lose you as a customer. If you are paying high interest rates for credit cards, call each credit card company and threaten to switch to a competitor with a lower interest rate.If they won't lower your interest rate, make the change to another card, but watch out for balance transfer fees. Also, if the higher interest rate is bringing you to the brink, the credit card company may be more willing to negotiate with you if they think you are going to file for bankruptcy.

Financial Motivational Quote June 22, 2009

"Social Security, bank account, and credit card numbers aren't just data, In the wrong hands they can wipe out someones life savings, wreck their credit and cause financial ruin."- Melissa Bean

Where Can I Go To Get Help With My Credit Card Debt?

Advertisements are on the radio, TV, and every where you turn telling you they can help with your debt problems. But you need to be weary of these get out of debt quick offers. Remember there are no quick fixes and every dollar you waste on a fly by night solution the longer it will take to get out of debt and may even make things worse. Call the nonprofit National Foundation for Credit Counseling (800-388-2227) for help. They offer free counseling and will help you trim your expenses, plan a budget, and even help you negotiate better terms and rates from your credit card companies.

Is A Payday Loan A Bad Loan?

Yes. You should do whatever you can to prevent having to take out this type loan. Any loan that has a high interest rate is red flag that it is bad. Say you borrow $1,000 that will take four years or 48 months to payoff with an interest rate of 18 percent. It will cost you $410 in interest over the term of the loan. That's almost half the amount you borrowed. Many other bad loans require you to pay late fees that are through the roof. Usually 35 percent or more.

How Do I Know If I Have A Credit Card Debt Problem?

There are many warning signs have a credit card debt problem. Much like being an alcoholic debt can be addicting. At some point you will probably have, if you haven't already, a panic moment. There are times when people have extra money and they will either blow the money or tend to payoff the wrong types of debt without looking at their full financial situation. As we have discussed before there are no easy fixes when it comes to credit card debt. It usually is a long term process to get a massive debt problem under control. If you can relate to at least 3 or more of these warning signs you probably have a credit card debt problem.

1. If you are always juggling payments or holding off paying one credit card to pay another and constantly getting past due notices...You may have a credit card debt problem.

2. If your are not saving a portion of your income every month. If you can't save 10 percent or any amount for that matter, of your pay every payday...You may have a credit card debt problem.

3. If you charge more each month than you make in credit card debt payments and have balances on more than five credit cards...You may have a credit card debt problem.

4. If your balances never go down and you take cash advances to make payments on other credit cards...You may have a credit card debt problem.

5. If you run out of money before payday and bounce checks regularly...You may have a credit card debt problem.

6. If you don't know how much you owe on your credit cards and you constantly check your mail for credit card offers...You may have a credit card debt problem.

7. If you use your credit cards for essentials such as food or gas...You may have a credit card debt problem.

8. You only pay the minimum on your credit cards...You may have a credit card problem.

Getting Your Finance, Credit Card, and Savings Answered

We are here to help get your credit card debt, student loan, savings, foreclosure, and mortgage questions answered. Ask a way and we'll find you an answer.

Financial Motivational Quote June 20, 2009

"It is imperative that we make consumers more aware of the long-term effects of their financial decisions, particularly in managing their credit card debt, so that they can avoid financial pitfalls that may lead to bankruptcy."- Daniel Akaka

Financial Motivational Quote June 19, 2009

"Men give me credit for some genius. All the genius I have lies in this: When I have a subject in hand, I study it profoundly. Day and night before me. i explore it in all its bearings. My mind becomes pervaded with it. Then the effort which I have made is what people are pleased to call the fruit of genius. It is the fruit of labor and thought."- Alexander Hamilton.

What Does President Obama's Financial Reform Regulations Look Like

President Barrack Obama announced his proposal for regulatory reform of the financial services industry. Some of the key components of the proposal include:

-Establishment of a consumer financial protection agency,an independent agency that would write and enforce all consumer rules for banks and non-bank financial companies as well as approve credit, savings, payment and other consumer financial products. Banks would be required to offer "plain vanilla" consumer loan products alongside other products. This agency would also regulate the Community reinvestment Act. States would be able to create stricter standards than those developed by the agency.

-Greater authority by the Federal Reserve to monitor and enforce systemic risk and set capital standards for all institutions.

-Establishment of a financial service oversight council of regulators, to be chaired by U.S. Treasury Department, that would coordinate oversight across the financial system.

-Increase in capital and liquidity requirements for the largest and most interconnected firms.

-Authority to the federal government to resolve and unwind systemically important entities.

-Regulation of over-the-counter derivatives as well as private pools of capital.

-Regulation of credit rating agencies.

-Merger of the Office of the Comptroller of the Currency and the Office of Thrift Supervision--and elimination of thrift charters.

-Empowerment of regulators, including the new consumer financial protection agency, to promulgate executive compensation rules and standards.

Congress will consider the proposal over the coming months. that process began this week when both the Senate and House of representatives held hearings featuring Treasury Secretary Geithner.

Read the full regulatory reform proposal

Financial Motivational Quote June 18, 2009

"We do not know, in most cases, how far social failure and success are due to heredity, and how far to environment. But environment is is the easier of the two to improve." Haldane

How Did This Economic Crisis Begin?

Based on a comment we recently received we are posting a video on the "History of the Federal Reserve." It discusses the reason for its creation and what has happened with the economy since it began. How did this economic crisis start? Funny how all this economic turmoil seems eerily familiar. "All this has happened before and it will happen again."

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Financial Motivational Quote June 17, 2009

"Pleasures, riches, honor and joy are sure to have care, disgrace, adversity and affliction in their train. There is no pleasure without pain, no joy without sorrow. O the folly of expecting lasting felicity in a value of tears, or a paradise in a ruined world." Gotthold

Am I The Only One Defaulting On My Credit Cards?

From the looks of it probably not. According to CNNMoney.com: Credit Card defaults keep climbing

"Data from May showed continued signs of stress for card issuers, reflective of worsening unemployment trends and deteriorating macro [economic] conditions," analysts at Berstein Research said in a report Tuesday.

Banks continue to write off credit card debt as consumers hurt by record high unemployment default at an increasing rate.

Regulatory forms filed this week by some of the nations largest banks showed default rates on credit cards rose in May. The default rate is a measure of loans that the bank does not expect to be repaid.

Seems like we are in a vicious circle. With credit hard enough to get as it is and with consumer credit scores plummeting from the defaults we are not going to get spending rolling again.

Obama's Plan To Create A Super Regulator For Credit Cards Grades a C

Create a super regulator for consumer oriented financial products, including mortgages and credit cards. It sounds good, but even Geithner and Summers refer to this as providing a "stronger framework" for regulation. Adding another regulator rather than eliminating them is a troubling development.

I have to agree. I hate the fact that we have to be regulated and protect ourselves from ourselves. I am afraid that the latest regulations are just beginning when it comes to credit cards and mortgages.

Read more about Report Card: Obama's plan to fix financial rules

Financial Motivational Quote June 16, 2009

"Successful men are influenced by the desire for results. Failures are influenced by the desire for pleasing methods and are inclined to be satisfied with such results as can be obtained by doing things they like to do. The common denominator of success - the secret of every man who has ever been successful - lies in the fact that he formed habit of doing things that failures don't like to do."- Albert Gray

Should I Buy or Rent A Home? When Does it make sense to rent?

For some forgoing home ownership now may be one smart financial move. In 2004, Tim Jones bought a little piece of the American dream: a modest three-bedroom home in Bend, Oregon, he paid $218,000. Three years later he married and was ready for phase two of the dream: trading up, yes ladies and gentlemen a bigger better house. But instead of buying, he and wife Elise pocketed the $100,000 profit from the sale of their house and rented bigger digs.

Smart move in today's market. Today Jones, 36, estimates their old place would sell for only $230,000. Meanwhile, he and Elise, 37, have been paying $1,250 a month for their rental, the same as their total costs for the smaller house. "I'm not building equity, but nobody around here is," says Jones.

With home prices expected to continue falling in most areas this year and to flatline for several years after that, many people are joining the Joneses in rethinking the merits of home ownership - for now.

As a renter, you won't wind up throwing away money on eroding equity. And there's plenty of inventory to choose from, as owners who can't sell seek to rent their condos and single-family homes.

You'll pay less for the same space too. U.S. rents dipped in the fourth quarter of last year, according to the Census Bureau, and real estate research firm Property & Portfolio projects they will fall again in 2009.

These are the new rules of real estate. To be sure, the case for renting is largely short term. Over the long haul the arguments favor ownership: You get to enjoy tax breaks, build equity, and take pride in a place that's yours.

Renters also run the risk of faulty market timing. Few expect real estate to bounce back swiftly, but if it does, prices could jump before you buy again. With that in mind, here's how to decide whether renting is the right course:

Calculate your time frame. Renting makes the most sense if your housing situation is already in transition. Maybe you need to move for a new job, in which case renting allows you to test out a new location. Maybe you've already decided to sell and trade up. Or maybe you're retiring and want to trade down or relocate.

This year Cheryl Mitchell, 63, retired from her HR manager job and pocketed the gains from the sale of her three-bedroom San Antonio home. She's now renting a smaller but luxurious condo near her kids in Gainesville, Va., for the same cost. "I'm getting a lot more for my money," Mitchell says.

Determining the real costs of owning vs. renting on the kind of property you want to live in is complex. Property taxes and maintenance as well as mortgage payments factor into home-ownership costs, offset by the tax advantages (the calculator at move.com can help). But if you rent for a while, you might have to pay a couple grand to a broker, and when you buy again, you'll have to pay for another move.

To figure out whether renting is a better value than buying, the best metric to look at is your area's price-to-rent ratio, says Dean Baker of the Center for Economic and Policy Research. To figure it out, divide the price of a home you'd try to buy by the annual rent you'd pay on a comparable home. If the ratio for your market is far above the historical average of 15, says Baker, renting may be a better deal.

The longer the price-to-rent ratio stays in your favor, the more benefit you'll gain from renting. To get a sense of where your local market is headed, look at trends in home prices and foreclosure rates.

Use the Stats & Trends tool on Trulia.com to get average list prices and median sales prices within your zip code. You can find out how the rate of foreclosures is changing by county on RealtyTrac.com. Finally, consider the local economy - if your area's major employer just announced mass layoffs, home prices will probably fall further.

The desire for ownership isn't purely financial. As a renter, you're at the whim of a landlord for things like painting and home improvements. But the tradeoff may be worth it. "I don't like our beige carpets," says Jones, "but it's the best financial move for now."

Remember to weigh the options and look good and hard at your options to determine what is best for your family.

Do I have to Make Payments To My Credit Card If I am Under 18?

Question: If a child or a teen who is not 18 receives a credit card in the mail and they decide to sign and use the credit card are they responsible for the payments?

From CNNMoney.com: Kids' credit cards, who pays?

Gerri Willis answers the question regarding children under 18 making payments to credit cards.

Answer: Bottom line is that if you're younger than 18, the contract between you and the credit card company is null and void and you would not be legally obligated for the balances. The bank will have to eat that amount.

That said credit card companies know this and they won't intentionally try to send you a credit card if you're a minor. Keep in mind that just because you receive a credit card application in the mail, it doesn't mean you will receive the credit card. And if this is you, don't use the card if you're under 18.

This is the same for any loan of any kind. The lender won't let you be a borrower on any type of credit product until you are 18.

Great Minds Think Alike. Facebook Tries to Give Twitter A Run For The Money

"Other services, Facebook spokesperson Larry Yo explains, "have a lot of people promoting themselves and we are offering this in case there are people on Facebook who want to do that."

From CNNMoney.com: Facebook borrows from Twitter's playbook

Heads up, Face book users, you now have the chance to choose a user name and corresponding URL for your profile.

The social networking giant hopes the offer will have its nearly-200 million users staying home on a Friday night, boosting traffic and helping Facebook gain a new edge in its mind-share battle with rival Twitter.

As it turns out, the user name gambit isn't attracting much buzz among Facebook subscribers, folks who use the social networking site to stay in touch with a close circle of friends and families. But for marketers and other self-promoters, the new program is a chance to turn Facebook into a "branded space" in advertising parlance. (more in moment on whether this will rankle everyday users of the service.)

I am sure these guys will need to continue to come up with innovative ways to keep getting you to back for more. I have heard several people refer to Facebook as crackbook because of the addictive nature of social networking. I am sure this will continue to add fuel to the fire for now. Which do you prefer? Facebook or Twitter?

Financial Motivational Quote June 14, 2009

"The most powerful force in the universe is compound interest."- Albert Einstein

Financial Motivational Quote June 13, 2009

"I like a man who can be a real friend, has a good sense of humor, a good pair of shoes and a healthy gold card,"- Victoria Adams

Financial Motivational Quote June 12, 2009

"The passing day is prey to error. Time commands success and achievement." Goethe

Bank of America's Ken Lewis Sticks By The Decision To Buy Merrill Lynch

"Even six months later, it is easy to forget just how close tot he brink our system came," Lewis said on his prepared remarks to lawmakers.

From CNNMoney.com: BofA's Ken Lewis defend Merrill deal

Bank of America chief Ken Lewis reiterated Thursday that pressure from federal regulators played an important part in the company's decision to continue with its planned acquisition of Merrill Lynch late last year.

Testifying before the House Committee on Oversight and Government Reform, Lewis said Bank of America nearly backed out of the deal after learning the scope of the losses at brokerage giant Merrill Lynch. But he added that the promise of additional government aid and potential threat to the U.S. financial system prompted the Charlotte, N.C. based lender to change its mind.

Looks like it's Lewis' word against Paulson and Bernanke's. What do you think actually happened with this deal?

Two Month Slump Ends For Retail Sales

"This report on high level looks better, but it's not very reassuring when you look beneath the surface," said Michael Niemira, chief economist with the International Council of Shopping Centers (ICSC).

From CNNMoney.com: Retail sales end 2 month slump

Retail sales rose in May, breaking two straight months of declines, but gains were fueled primarily by auto purchases and higher gas prices that pumped up gasoline station sales.

The Commerce Department said total retail sales rose 0.5% last month, compared with April's revised decline of 0.2%. Sales in April were originally reported to have declined 0.4%

This doesn't look all that promising since most of this came from auto sale and higher gas prices. Get out there and spend people. Quit being afraid to live your life.

Forclosures Lower In May, But Are Still Up There

"While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2%," said Realty Trac CEO James Saccacio in prepared statement. "We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end."

From CNNMoney: May foreclosures fall but still high

Lenders filed fewer foreclosure notices in May, but the total number of filings was still the third highest monthly total on record.

One of every 398 households in the United States received some kind of filing, including notices of default, scheduled auctions or bank repossession, during May. That was a decline of 6% from April but an increase of 18% compared with May 2008.

And the ultimate type of foreclosure filing- bank repossessions- increased during the month, according to Realty Trac.

Rates have been going back up again. This along with higher gas prices just isn't helping. We have not had low mortgage interest rates and gas prices for a long enough period to make a difference. Are we ever going to get out of this economic mess.

Have you taken advantage of the Obama administrations loan programs before the rates went up? Let us know how a loan modification has helped you.

25 Ways To Put More Money In Your Pocket.

Whether you are cutting back to put more towards your credit card debt or just saving in general here are an additional 25 ways to do so.

1. Don't buy things from a vending machine-these things usually have a large markup and are unhealthy.

2. Send away for and follow up on rebates the day you make a purchase.

3. Get books from the library- you can't beat free.

4. Never pay checking account fees- there are free banks out there.

5. Drive you car longer- drive it as long as it is safe.

6. Eliminate some of your cable channels- do you really need 500 channels?

7. Take your lunch to work one day more then you do right now.

8. Get organized so you don't miss payments, those late charges will kill you.

9. Cut your dryer sheets in half- the box will last twice as long.

10. If you don't have someone to share your meal with- take half of it for lunch the next day.

11. Stop drinking soda

12. For your must read magazines- get a subscription- its much cheaper then buying them each week.

13. Don't pay interest on your credit cards

14. Buy furniture at a consignment store.

15. Plan trips where you have friends and family- save on room and board.

16. When flying- bring your own snacks- airport food is expensive.

17. Make trip purchases, like aspiring and suntan lotion a head of time.

18. Keep tires properly inflated- it will get better gas mileage.

19. Have a yard sale

20. Have an automatic saving account set up at your bank.

21. Eat at home more

22. Sell things you don't need anyone on Ebay.

23. Freelance on the side- writing, photography- whatever you are good at.

24. Make your own greeting cards.

25. Go to community rec areas instead of having a gym membership

If you have been successful paying off your debt by cutting back on your expenses share with us you you did it.

Financial Motivational Quote June 11, 2009

"On the pinnacle of success man does not stand firm long." Goethe

Fed Put A Gun to BofA's Head To Get Them To Buy Merrill Lynch According to Emails

"Stepping back, though, it is important to remember the circumstances in which these discussions were taking place: a crisis in financial markets and in the economy generally." Lawrence Di Rita said. "Serious people were working hard to make decisions to stabilize and improve the situation. In hindsight, it's interesting to look at all of that, but we're looking forward."

From CNNMoney: Emails show fed strong armed BofA

Bank of America CEO Ken Lewis heads to Capitol Hill on Thursday, and he's likely to be grilled by lawmakers about the government's role in ensuring that the bank complete its controversial merger with Merrill Lynch.

According to emails released Wednesday that pull back the curtain on heated negotiations, Federal Reserve Chairman Ben Bernanke had suggested that "management is gone," BofA managers tried to flee the deal and later on needed further government assistance.

The revelations come thanks to Congressional subpoenas demanding that the Fed disclose emails related to bank of America's purchase of Merrill. CNNMoney.com acquired copies of some of the emails circulated among House republicans late Wednesday.

This concerns me quite a bit that our government can make companies purchase other ailing companies and potentially cause the buyer to go under as well. Does our government have to much control and is their a lot more going on than we are made aware? What do you think?

The Economy Sees A Sign Of Hope

"Some districts saw signs that job losses may be moderating," the report said.

From CNNMoney.com: Some hope for weak economy

U.S. economic conditions were weak or got worse through May, but some areas of the country saw signs the contraction was moderating, a Federal Reserve report said Wednesday.

Fed contacts in several regions said their expectations for the economy have improved, but they still don't expect much of an increase in economic activity in 2009.

The Fed's "Beige Book" of reports gathered from the 12 Fed districts showed widespread economic weakness with a few glimmers of hope.

What do you think" Is the economy improving for you?

The White House Looks At New Pay Legislation

"This financial crisis had many significant causes, but executive compensation practices were a contributing factor," said Treasury Secretary Tim Geithner in a statement.

From CNNMoney.com: White House proposes new pay legislation

The Obama administration moved forward Wednesday on curbing runaway corporate pay practices, proposing new legislation aimed at giving shareholders a greater voice on executive pay and appointing a new so-called "pay czar."

The White House's two-part proposal would require non-binding annual "say-on pay" shareholder votes for all public companies and attempt to create a firewall between those board members responsible for setting executive pay packages and senior management.

Compensation reform experts have long lobbied for such changes, arguing that shareholders have no influence in the matter and that executive pay practices have become tainted by relationships between management and company directors.

The new legislation, which will require Congressional approval, would be effectively carried out by broadening the powers of the Securities and Exchange Commission.

Putting a cap on or restricting pay? Isn't the United States based on Capitalism? Is regulating pay going to hinder drive and motivation for reaching for the top? Let us hear what you think.

One Test The Economy Needs To Pass: Back To School

"In a recession, the consumer is generally the last one to leave the economy and the first one back," said Marshall Cohen, chief retail analyst with research firm NPD Group.

From CNNMoney.com: Back-to-school: Test of economy's strength

While some kids are still counting the days until the end of this school year, retail experts are looking ahead to the back-to-school shopping ritual as the first real test of whether the economy is recovering.

"Consumers didn't really start to pull back until last October," Cohen said. "Now they've gone through month's of frugality and there's so much pent up demand out there."

If back-to-school sales are a disaster, then Cohen warns that the economy is headed for a "long period of continued challenge."

But if he's guessed correctly, and this tidal wave of pent-up demand hits retail stores from mid-summer through September, "it could be the first credible sign that consumers are felling a little bit OK about spending again," he said.

I remember hating the end of summer. As it meant the beginning of school. Although the best part of school starting was getting new clothes and my new Trapper Keeper (Pee-Chee folders when I was older). I am anxious to see the school shopping season start as it should be meaning the end of the recession.

Chrysler and Fiat Get Hitched

"This is a very significant day...for the global automotive industry as a whole," said Sergio Marchionne, Fiat's chief executive who was named the CEO of Chrysler on Wednesday. "From the very beginning, we have been adamant that this alliance must be a constructive and important step towards solving the problems impacting our industry."

From CNNMoney.com: Chrysler and Fiat make it official

Chrysler and Italian automaker Fiat on Wednesday officially signed a strategic alliance brokered by the U.S. government, one day after the Supreme Court cleared the path for the deal.

Fiat will initially take 20% stake in the company; its share can go up to 35% if it reaches certain fuel efficiency goals.

The new company will be called Chrysler Group, LLC, after former Chrysler LLC sold nearly all of its assets to the new firm.

I have been a fan of Chrysler since my parents gave me their Chrysler Cordoba as my first car when I was sixteen. I still currently drive two Chrysler products. They have always been great cars to me.

Financial Motivational Quote June 10, 2009

"The secret of success is sincerity. Once you can fake that you've got it made." Jean Giraudoux

Bank of America Picks Up Mozilo's Legal Tab. Are you Kidding Me?

"Under the agreement he had when Countrywide was an independent company, Countrywide continued to be responsible for his legal expenses for actions taken while he was an employee," Bank of America spokesman Robert Stickler said.

From CNNMoney.com: Bank of America to pay Mozilo's legal fees

Bank of America Corp. said Tuesday it is covering the legal fees of Angelo Mozilio, the former Countrywide Financial Corp. chief executive charged with securities fraud and insider trading.

The largest U.S. bank said Mozilo is covered by an indemnity clause in place when he ran Countrywide, which Bank of America acquired last July 1. Mozilo had co-founded Countrywide in 1969.

The securities and Exchange Commission filed civil charges against the 70 year old Mozilo last Thursday, saying he made more than $1139 million of improper profits by exercising stock options in 2006 and 2007 while the nation's housing market and Countrywide's finances were deteriorating.

I have to say Angelio Mozilo was one slick dude. Cash out millions in stock options before your company goes belly up, make millions selling a belly up company, and then cover your ass and stick the legal fees to the company that buys you out. Genius or crook? Tell us what you think.

Oil at $70 Threatens Economic Recovery

"People say it doesn't matter until gas gets to $3 or $4 a gallon," said Peter Beutul, an oil analyst at Cameron Hanover. "But every time it goes higher it takes that much more money out of consumers pockets."

From CNNMoney: $70 oil menaces budding recovery

Two weeks change a lot in the oil markets.

At the end of May CNNMoney.com ran a story asking if $60 oil will kill any economic recovery. "No," most analysts said-consumers could shoulder $60 crude, and analysts didn't see prices going much higher.

Now oil is touching $70 a barrel. Goldman Sachs recently said it sees crude $85 by the years end. With the economy still on life support, oil is drifting dangerously close to being the wet blanket at the recovery's party.

Many say consumer spending - which accounts for over two thirds of he nation's economic activity - takes a big hit when crude hits $100 and gas $3 a gallon. Some say it's more like $125 crude and $4 gas. Others say that during a recession $80 is the breaking point.

But putting a number on it is almost beside the point. The higher it goes, the more it hurts.

We probably need higher oil like a hole in the head right now. Just when things are starting to turn around. Let's hope things chill out an oil prices until we get rolling full steam ahead again.

Sponsorship Dwindles From $45K to $3K, But The Game Continues

"Some of the parents who are used to putting money out every summer for these travel teams, they are saying that the dollars are a little tighter," says Abe Key, president of PONY Baseball and Softball, a nationwide organization of elite travel teams. "Those teams are not traveling as much."

From CNN.com: League sponsors shrink from $45K to $3K, baseball plays on

The baseball diamonds and bleachers are filled with tales of moms and dads pitching in to put their kids on the field -- Foreclosuresville's version of "Field of Dreams."

North Rialto Little League has seen its annual $45,000 sponsorships shrink to a mere $3,000. Parents have lost their jobs, even houses, amid the nation's economic woes.

But the fa miles in this corner of California's economically ravaged region known as the Inland Empire have kept the aluminum bats swinging and the crowd roaring.

Not a single game has been missed because of hard times. "Even though we are in bad times. It still brings out something good," says Janis Strong, the president of North Rialto Little League. "What worked for you a long time ago, it'll work for you now...That's what we're supposed to do, have family involvement."

The families and the league had no choice but to rally around each other when the sponsorships plunged. Bread and butter small business sponsors closed up or lost too much revenue to help the league. The links to other financial donors were severed when parents lost their jobs at the sponsoring businesses.

It's a story echoing across America's fields, gyms and rinks for sports programs. Parents are often struggling to raise money, even in elite leagues that in the past had large financial treasure chests.

The economy has hit an all time low now that sponsor dependant programs and charities are suffering. Programs such as these help keep kids off the street and build confidence and team building skills. If there is any way you can help your favorite charity please do. Remember: what comes around goes around.

Financial Motivational Quote June 9, 2009

"The fortune that nobody sees makes a person happy and envied."- Sir Francis Bacon

Do Women Handle Money Different Than Men?

From CNNMoney: Women, men and money

When it comes to managing money, women worry a lot more than men do -- and women are more likely to ask for help with their money problems.

That's the gender gap described in a recent report by Financial Finesse, a firm that operates a financial planning helpline as an employee benefit for large companies.

Among the findings: only 53% of women say they have a handle on their cash flow and spend less than they make each month. By contrast, 71% of men made that claim. Only 36% of women say they regularly pay off their credit card balances, compared with 61% of men.

During that time same period, Financial Fineness received more than twice as many helpline calls from women as from men -- 68% vs. 32%. More than 40% of the calls from women concerned debt problems, according to the study, compared with 36% for men. And nearly 30% of the debt related calls involved urgent financial issues, such as foreclosure and bankruptcy.

Do think you handle money differently than your spouse or significant other? Let us know.

Be Careful With Reverse Mortgages Warns U.S. Regulator

"While reverse mortgages can provide real benefits, they also have some of the same characteristics as the riskiest types of subprime mortgages -- and that should set off alarm bells," Dugan said in prepared remarks to an American Bankers Association conference.

From CNNMoney.com: U.S. regulator: Be Wary of Reverse Mortgages

Reverse mortgages could be the next subprime mortgage product to experience rapid growth while taking advantage of a vulnerable segment of the population, top U.S. bank regulator John Dugan said Monday.

Dugan, who heads the office of the comptroller of the Currency and supervises some of the nation's largest banks, said regulators are crafting guidelines to ensure that robust consumer protections are in place for reverse mortgages.

Reverse mortgages are complicated loans targeted at homeowners who are at least 62 years old, and allow older Americans to live off the equity in their homes as they age.

In a reverse mortgage, the homeowner receives the money from the lender, which does not have to be repaid as long as the borrower lives in home.

As with any loan be sure to do your home work. Know what you are getting into and remember you sign a contract when taking out loan. You may putting your home and your lively hood at risk. if you don't understand the loan terms. Just know the facts and make an educated decision.

Delinquencies On Credit Cards Are On The Way Up

"This increase could be an indication that tax refund checks, typically used to pay down balances in the first quarter in years past, are now being used to cover daily living expenses," said Ezra Becker, of TransUnion's financial services group, in a written statement.

From CNNMoney.com: Credit Card Delinquency On The Rise

Credit card delinquency rates jumped 11% in the first quarter, possibly indicating that consumers are using tax refunds to day-to-day expenses, according to a credit reporting agency report released Monday.

The delinquency rate -- which is the ration of borrowers 90 days or more delinquent on one or more of their credit cards -- increased to 1.32% in first quarter of 2009.

That's up 9.1% over the previous quarter, and 11% over the previous year, according to the report from credit reporting agency TransUnion.

The average borrower debt rose 4.09% from the previous year to $5,729, TransUnion said. The agency uses data from 27 million anonymous, individual credit files.

"The impact the changes to credit card regulations and associated legislation, and the response of card lenders to those changes, will have on consumer behavior and hence delinquency rates is still unknown," the report said.

I know people who have put money in there home safe too instead of paying bills or spending money in fear they will be unemployed. This is not good. If balances are not being paid or money being spent the economy will not get better. Don't be afraid live your life as you normally would.

Financial Motivational Quote June 8, 2009

"Money isn't everything-there's credit cards, money orders, and travelers' checks."

Is Blogging Dead?

Andrew Serwer reported in his article "The end of Blogging", that he is not blogging as much as he used to. Also stating it's hard to find the time. I do agree with him in that respect. It is very time consuming. He also says, " I have literally been Facebooking and Twittering all my content way!"

I love blogging. I am also on facebook and Financial Elite is on Twitter too, but the blog comes first. Blogging can also be a way to generate extra income (for those of you who have been following our ways to save money series...hint, hint).

How does everyone else feel. Have given up blogging to work on your facebook and twitter tweets? Let us hear from you.

GM's Sales End Up Much Better Than Originally Thought

"This is still a very fragile industry," said Ken Czubay, Ford's vice president of sales, on a conference call with reporters. "it won't be straight line up from here to the end of the year."

From CNNMoney.com: GM sales: much better than expected.

A day after filing for bankruptcy, General Motors Corp. said its light vehicle sales in May fell much less than anticipated.

GM said total car and light truck sales fell 29% compared to a year earlier. That was much narrower decline than the Edmunds.com analysts' forecast of a 36.9% drop and better than the 33% retreat in April.

Its four brands which will be dropped in a restructuring of the company- Pontiac, Saturn, Saab, and Hummer- each reported much bigger sales declines than GM's overall drop, the worst being a 63.5% plunge in Saab sales.

Ford Motor Co's U.S. auto sales fell less than expected in May marking its best performance since July 2008, the automaker reported on Tuesday.

Analysts predict the combined monthly U.S. market share for Chrysler, Ford and General Motors' domestic vehicles will be 43.9% in May 2009, down from 45.3% a year ago and 46.6 in April.

As the economy continues to improve and confidence returns sales will begin to return to positive numbers. Let's keep the good news coming in.

Pending Home Sales On the Way Back Up

"Housing affordability conditions have been at historic highs, but now the $80,000 first-time home buyer tax credit is beginning to impact the market," said Lawrence Yun, NAR's chief economist in a prepared statement. " Since first-time home buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."

From CNNMoney.com: Pending home sales rebounding

The number home sales contracts signed in April Continued to bounce back from record lows hit last winter, according to a widely watched industry report. This is the third consecutive month of gains.

The Pending Home Sales Index from the National Association of Realtors rose 6.7% in April after jumping 3.2 % in March. That was far above the forecasts of experts surveyed by Briefing.com, who predicted a 0.5% increase. The index was 3.3% higher than 12 months earlier.

Pending home sales are a forward-looking indicator since many of the contracts don't result in completed deals for many weeks or months.

Many lenders I know have an extreme back log of pending home sales as they wait from asset managers to approve pending contracts. As more deals continue to get approved and the traffic jam gets freed up, plus lenders continuing to beef up staff to get loans closed we will continue to see these home sales numbers increase.

Financial Motivational Quote June 7, 2009

"Life was a lot simpler when what we honored was father and mother rather than all major credit cards."- Robert Orben

Financial Motivational Quote June 6, 2009

"You want 21 percent risk free? Pay off your credit cards."- Andrew Tobias

The End of The Recession Is In Sight, Employers Cut 345,000 Jobs In May and Other Good Economic News

Looking for good economic news has been like looking for a needle in a haystack lately. But today the job loss report should the smallest lost since September.

Employers cut 345,000 jobs from their payrolls in the month, down from the revised decline of 504,000 jobs in April.

Job losses have not been this low since September when the bankruptcy of Lehman Brothers caused a crisis in U.S. financial markets and cut off credit for businesses. The forecast for job losses was 520,000 in May according to economists surveyed by briefing.com.

More good employment news showed jobless claims fell for the first time since the week ended January 3.

According to government data released on Thursday, ongoing claims for unemployment insurance declined for the first time since January, and the number of initial jobless claims fell slightly.

Last week existing home sales rose 2.9% while the median sales price fell 15.4% to $170,200 in April.

The National Association of Realtors reported that existing home sales rose 2.9% last month to a seasonally adjusted annual rate of 4.68 million units compared to the revised rates of 4.55 million in March.

More good news last week showed the National Association for Business Economics reported that a recovery in the second half of this year will be moderate. The leading economists say the end of the recession is in sight.

"The good news is that the NABE panel expects economic growth to turn positive in the second half of this year, with the pace of job losses narrowing sharply over the remainder of this year and employment turning up in early 2010," said NABE president Chris Varvares in a written statement.

Share your good economic news us. Remember: Good News=Good Economy.

Financial Motivational Quote June 5, 2009

"A check or credit card, a Gucci bag strap, anything of value will do. Give as you live."- Jesse Jackson

Why Is My Credit Score So Important?

Your credit score is the first thing potential creditors look at. Your credit score directly affects the credit cards and loans you apply for now and in the future. If your credit score is not high enough, especially today with credit standards at their tightest, you may not qualify for the credit card or loan you are applying for. Currently, you can be charged a higher rate of interest if your credit score goes down. Laws are changing in February 2010 to curb credit card company practices like this. The better your credit score the easier it is for you to obtain a loan or credit card. A good credit score can also affect everything from your insurance premiums, utility deposits, and renting an apartment.

Financial Motivational Quote June 4, 2009

"This is my ultimate fantasy, watching QVC with a credit card while making love and eating at the same time."- Yasmine Bleeth

How Do I Cut Back On Expenses?

Suggestions have been pouring in on how to cut back and apply the extra found money to your credit cards. Here are the latest:


- Join a wholesale club and buy in bulk, like Sams Club or Costco. Split large quantities with friends.-

-Use a hose instead of the car wash

- Carpool

- Take the bus to work instead of driving

- East out less

- Ride a bike or walk places if possible

- Use birth control to avoid unwanted pregnancies

- Buy nothing you do not need

- Give up drinking or smoking

- Put of giving to charity until you can afford to do so

- Cut back on gift giving

- Make gifts yourself

- Cancel newspaper and magazine subscriptions

- Shop at secondhand stores

- Accept hand me downs for your children

- Save money in a special account or an envelope instead of using layaway

- Bake and cook things that you would normally buy

- Cancel any trips you have planned- and take a less expensive route- like camping

- Send e cards, instead of buying and mailing cards

If you have cut back to help pay off your credit cards tell us what you did so we can share your tips.

Pride Month Celebrates Lesbian, Gay, Bisexual, and Transgender Diversity.

June marks Pride Month, and as celebrations around the world promote lesbian, gay, and bisexual and transgender (LGBT) diversity awareness, Bank of America not only supports diversity through associates awareness but through its products and services.

Bank of America was one of the first financial institutions to incorporate sexual orientation and gender identity into its nondiscrimination policies and offer comprehensive domestic partner benefits. The bank also was one of the first to offer an LGBT affinity credit card, these products now include the Elton John AIDS Foundation card, the Human Rights Campaign card, the Atlantis card, the Rainbow car, and the Olivia World Points card.

The bank will begin offering Human Rights Campaign deposits products on June 12 and Rainbow branded deposits products in August.

Merrill Lynch adds a robust set of wealth management products and services that deal with the issues faced by the LGBT community, helping customers work through the legal and financial maze of estate and retirement planning for domestic partners.

"Bank of America is proud to be one of today's progressive companies recognizing the unique needs not only of our LGBT associates, but also those of LGBT clients that we serve," said Jim Eckerie, Global Quality and Productivity and Enterprise Transition executive. LGBT Pride Resource Group executive sponsor and Global Diversity and Inclusion Council member.

"There is one of the many ways Bank of America reinforces the core value of doing the right thing," he added, "whether we are helping every customer and client pursue their financial goals based on their unique needs or creating an inclusive work environment that enables our associates to achieve their full potential."

The bank has received recognition from prestigious external groups for its commitment to LGBT associates and customers. Bank of America and Merrill Lynch have both consistently achieved a perfect score of 100% in the Human Rights Campaign Corporate Equality index, based on their domestic partner and work life benefits, recruiting efforts, associate resources groups and supplier diversity policies. The bank also placed the No. 14 in Diversity Inc's overall ranking of top companies.

Financial Motivational Quote June 3, 2009

"We must take away from the government's credit card. With limits on both tax revenue and borrowing, the Federal government would finally be forced to get serious about spending cuts."- Alan Keyes

How Can I Pay Off My Credit Card Debt?

For those struggling to pay off their credit card debt it can be done with a little elbow grease. You may have to cut back to pay extra on your credit cards, but where there is a will there is a way. The posting of suggestions to pay off your credit card debt was inspired by the question "Should I take out a 401K loan to pay off my debt?". While getting a 401K loan can be useful to paying off debt, it can be dangerous under the current economic situation. If you lose your job you will be looking at being taxed on the money you borrowed.

We have been getting all kind of suggestions and we will continue to post them as long as they keep coming in. I was once in credit card debt in excess of $60,000 and paid back every penny. Some of the tips are the very ones that I used to pay of my debt. These tips won't make you debt free over night. It took me five years, but if you want to get that weight off your shoulders try some of these out. It will add up over time.

- Barter- For example fix your neighbors car in exchange in for a hair cut.

- Clip coupons, use rebates, and shop sales.

- Sell your car and buy a less expensive used one or take public transportation until you can afford a new one.

- Do small home repairs yourself instead of paying someone.

- Sell your home and buy a less expensive one that is smaller.

- Move in with family or friends for a short time to save on rent.

- Borrow books from the library instead of buying them.

- Rent DVD's, instead of going to the movies.

- Cook from home instead of getting takeout.

- Stop buying coffee or lunches out and bring your own.

- Find ways to reduce your grocery bill. Use leftovers, cook inexpensive meals such as soup, and create menus based on what is on sale.

- Reduce your children's allowances.

- Buy store brands instead of name brands.

- Plant a vegetable garden.

- Stop gambling or buying lottery tickets.

For other money savings tips look at these previous posts:

If I Don't Take Out A 401K Loan To Pay Off My Debt Where Else Can I Get Money?

If I Don't Take Out A 401K Loan To Pay Off My Debt Where Else Can I Get Money? Continued...

If I Don't Take Out A 401K Loan To Pay Off My Debt, How Can I Pay Off My Credit Card Debt? Continued...

Bank of America Will Exceed Capital Target.

Bank of America today stated that it has raised almost $33 billion towards the 33.9 billion capital buffer identified by the Federal Reserves Supervisory Capital Assessment Program (SCAP) and now believes it will comfortable exceed that number.

The date, Bank of America has entered into agreements with certain holders of (non government) perpetual preferred shares to exchange their holdings of approximately $9.5 billion pf perpetual preferred stock into approximately 704 million shares of common stock. This results in a total benefit to Tier 1 common capital of $9.5 billion.

Other capital-enhancing elements already achieved include:

- $13.5 billion from the direct sale of common stock
- A capital gain from the sale of shares in China Construction Bank.
- A $2.1 billion benefit from the deferred tax asset due to the increase in Tier 1 capital.
- Approximately $1.3 billion in reduced dividends on preferred shares over 2009-2010 associated with the shares exchanged into common stock.
- Approximately a $2 billion benefit from other dispositions.

As of the of the company's capital, it could issue up to an additional 296 million common shares included in the number, as previously announced, Bank of America has offered to exchange more perpetual preferred stock for up to 200 million shares of common stock by the end of June under an exchange offer that commenced May 28, 2009. These exchanges would result in further reductions in preferred dividends.

"We are pleased to have nearly reached our goal this quickly", said Joe Price, CFO.

Bank of America hopes to use the majority of the proceeds from these initiatives to reduce reliance on government support for the company.

The company also recently raised long-term debt without government guarantees. Bank of America sold $3 billion in five-year notes on May 8th and $2.5 billion in 10 year notes on May 28th without Federal Deposit Insurance Corporation guarantees.

Financial Motivational Quote June 2, 2009

"Modern man drives a mortgaged car over a bond financed highway on credit card gas."- Earl Wilson

If I Don't Take Out A 401K Loan To Pay Off My Debt, How Can I Pay Off My Credit Card Debt? Continued...

People have been asking about taking out 401K loans to pay off their credit card debt and how to find extra money to pay off their debt. Suggestions keep coming in and we are sharing another group of tips on how to save money and put the extra found dough towards your debt.

- Have a garage sale.

- Sell items to pawn shops. Remember you may receive less than fifty percent of the item you are pawning.

- Sell items using a consignment shop.

- Turn your hobby into a money making business. Website design, cleaning, landscaping, cooking and baking, making birdhouses, whatever floats your boat. Do what you like to do and make money doing it.

- If you have children who work get them to contribute to the household.

- Place an add in free classifieds in local community newspapers to sell things.

- Sell items on eBay or Craigslist.

- Get a second job. Even small jobs can help you raise the money you need.

- Ask for a raise or more hours at work.

- Return things you bought and don't need. Get the cash back if you still have the receipt. If you don't have the receipt get store credit to but things you do need.

With the economy in it's current state you may not want to take out a 401K loan right now. If you get laid off you will have to pay taxes on the entire amount you withdrew. Instead find ways to cut back and pay off the debt slowly, but surely. It will pay off (no pun intended) in the long run.

Have you paid off credit card debt by cutting back? Let us hear from you.

Should I Take Out A 401K Loan To Pay Off My Credit Cards?

Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?

Should I Stop Contributing to My 401K To Pay Off My Credit Cards?

Reward Cards May Help You Save.

Financial Motivational Quote June 1, 2009

"Money is just the poor man's credit card."- Marshall McLuhan