How can you make your home more affordable? Most homeowners would love to refinance their home and lower their payments. I came across these 10 tips from Walletpop and thought they could come in handy.
Home Loan Refinance Tip #1: Figure out how much equity you have. Get your property's value assessed and find out from your Realtor what the comps in your area are selling for as opposed to what they're listed for. Does your neighborhood have a lot of foreclosures? If so, expect your home value to have dropped in prices, which can affect your home refinance. Most lenders today won't do a loan refinance unless you have at least 20% equity and have proof of income.
Home Loan Refinance Tip #2: Make sure your credit score and income qualifies you. Because of the housing crisis fallout, lenders have stricter credit and income requirements. get your credit and debt-to-income ratio in order before even beginning to think about entering the home loan refinance process.
Home Loan Refinance Tip #3: Prioritize your home loan refinance goals. Whether you want to lower your monthly payments or reduce your loan term, figure out first to make sure you meet those goals with your home loan refinance.
Home Loan Refinance Tip #4: Don't assume you can't get a home loan refinance if you are under water with your mortgage. Even if your property's value is less than what you owe on it, it is still possible to get a home loan refinance. If you have a mortgage that is owned or securitized by Fannie Mae or Freddie Mac, you still might be able to qualify. Some federal programs even allow you to get a home loan refinance if your mortgage is 125% of your homes value.
Home Loan refinance Tip #5: Don't assume you can't get a home loan refinance if you are unemployed. many are finding themselves in the position where they can't qualify for a home loan refinance because they don't have a full time job, but because they don't have a full-time job, they need a home loan refinance. If you can relate, no documentation loans are one option. Wallet Pop has written about how to manage the home loan refinance question as an unemployed person here.
Home Loan Refinance Tip #6: don't take the first home loan refinance you see. Shop for the best home loan refinance deal, since home loan refinance fees vary widely. Shop around for lenders, asking what home loan refinance fees and rates each each offers.
Home Loan Refinance Tip #7: Check out your credit union for a home loan refinance. Non-profit credit unions often charge lower interest rates and fees than traditional banks.
Home Loan Refinance Tip #8: Find out whether your existing mortgage involves a pre-payment penalty if you get a home loan refinance. If you do have to pay fees that equal the amount you'd save from a home loan refinance, than obviously, it doesn't make sense to proceed.
Home Loan Refinance Tip #9: Be careful about getting a home loan refinance to pay off debts or to make purchases. We've all seen the aftermath of the home-loan-refinance-as-ATM mentality, so think twice about whether your motivations for getting a home loan refinance are reasonable. You don't want to use a home loan refinance to consolidate debts so you can afford your dream vacation or dream car, but you can with caution, make an argument for using a home loan refinance to make home improvements, if those renovations or remodeling projects will give you a bigger return on your investment than what they cost.
Home Loan Refinance Tip #10: Be patient. Due to the home loan refinance requests spurred by the low interest rates, some lenders may take 90 days or more to process a home loan refinance.
Monday, November 30, 2009
Making Your Home and Credit Cards More Affordable: Know Your APR
You might find the acronym confusing, but the APR (annual percentage rate) on your credit card or your mortgage should be a number you are familiar with. It's important because it describes the cost of your credit balance on a yearly basis. A healthy understanding of what determines this rate can help improve your financial decisions. You can save by assessing your current rates against competing cards or new offers, creating responsible spending and payment plans, and avoiding actions that might trigger a higher rate.
It's important for you to understand your annual percentage rate when managing your credit. You want to be sure you know just how much you are paying each month on your loan. Being knowledgeable about the factors that affect your APR will save you money in the long run.
Here are some tips to educate yourself about interest rates:
1. Read the account agreement. If you are already using a credit card or comparing different credit card offers, pay attention to the details. Make sure you know how much you are paying in interest and how it is calculated. Some cards calculate APRs while others do periodic rates (a monthly finance charge or daily charge). But some cards vary these interest rates based on your use of the card, such as 14 percent APR for purchases, but a 15 percent APR for cash advances.
2. Variable APR versus fixed APR. The account agreement tells you if your card has a variable or fixed APR. Variable means that the interest rate can fluctuate up or down from the set amount-called the margin-based on a reference rate like the U.S. Prime Rate (level charged by most banks to their most creditworthy customers). For example, when the U.S. Prime rate increases, your variable APR can also increase. Fixed APR rates don't fluctuate in this way, but they are not guaranteed-they can be changed based on market conditions. The good news with a fixed rate is that you will be notified first.
3. Higher or lower APRs. Which works best for you? It might always seem that having a lower APR is better, but not if you are a person who pays your balance off every month. If that's the case, then you should be more interested in other fees that might apply to you-like cash advances or annual fees-because the APR doesn't affect you.
4. Calculate how much interest you pay. If you maintain a balance every month, take a moment to look at how much you are paying in interest. The statement should tell you, but you can figure it out for a specific day. Your DPR (daily periodic rate) is calculated by dividing the APR by 365 (the number of days in a year). That number is multiplied by the account balance that day and by the number of days in the statement billing cycle, as shown on your statement. This figure might be a wake up call, because what you pay in interest could be extra money in your pocket.
Remember: Almost everyone reaches a point where they need a loan-whether for a mortgage or a start up business. Stay in control of your credit and you will be able to secure a loan with a more favorable interest rate, thus enjoying the benefits that good credit management offers.
It's important for you to understand your annual percentage rate when managing your credit. You want to be sure you know just how much you are paying each month on your loan. Being knowledgeable about the factors that affect your APR will save you money in the long run.
Here are some tips to educate yourself about interest rates:
1. Read the account agreement. If you are already using a credit card or comparing different credit card offers, pay attention to the details. Make sure you know how much you are paying in interest and how it is calculated. Some cards calculate APRs while others do periodic rates (a monthly finance charge or daily charge). But some cards vary these interest rates based on your use of the card, such as 14 percent APR for purchases, but a 15 percent APR for cash advances.
2. Variable APR versus fixed APR. The account agreement tells you if your card has a variable or fixed APR. Variable means that the interest rate can fluctuate up or down from the set amount-called the margin-based on a reference rate like the U.S. Prime Rate (level charged by most banks to their most creditworthy customers). For example, when the U.S. Prime rate increases, your variable APR can also increase. Fixed APR rates don't fluctuate in this way, but they are not guaranteed-they can be changed based on market conditions. The good news with a fixed rate is that you will be notified first.
3. Higher or lower APRs. Which works best for you? It might always seem that having a lower APR is better, but not if you are a person who pays your balance off every month. If that's the case, then you should be more interested in other fees that might apply to you-like cash advances or annual fees-because the APR doesn't affect you.
4. Calculate how much interest you pay. If you maintain a balance every month, take a moment to look at how much you are paying in interest. The statement should tell you, but you can figure it out for a specific day. Your DPR (daily periodic rate) is calculated by dividing the APR by 365 (the number of days in a year). That number is multiplied by the account balance that day and by the number of days in the statement billing cycle, as shown on your statement. This figure might be a wake up call, because what you pay in interest could be extra money in your pocket.
Remember: Almost everyone reaches a point where they need a loan-whether for a mortgage or a start up business. Stay in control of your credit and you will be able to secure a loan with a more favorable interest rate, thus enjoying the benefits that good credit management offers.
Saturday, November 28, 2009
I'm as Mad as Hell About the Economy and I'm Not Going to Take This Anymore!
The mortgage industry is a partial contributor to the economic and financial mess we're in. This mess is getting ready to continue for another round of: foreclosures, lay offs, delinquencies, and bankruptcies and the mortgage industry is going to help do it all again.
We are gearing up up for another round of foreclosures with almost 350,000 option-ARM borrowers who owe more than when they first bought their homes thanks to unpaid interest accumulating. The first wave of these exotic loans, which allowed homebuyers to come to closing with little cash, are getting ready for a five year reset. At that time they become standard, amortizing loans, where originally borrowers were able to choose monthly, how much to pay: interest and principal, interest only, or a minimum amount less than the interest due.
This means another group of borrowers are being poised to pay some big home payments. A $400,000 home for example can see the mortgage payment jump from $1,287 to $2,593.
This resetting of loans with the already current amount of loans facing foreclosure is a cocktail for disaster. As of the latest report from the Mortgage Bankers Association, 9.64% of all mortgage loans were delinquent during the third quarter. That represents 4.5 million borrowers and is an increase from 9.24% in the prior three months.
The delinquency rate includes all mortgage loans in foreclosure are at least one payment behind and the amount of delinquencies is the highest ever recorded in the MBA delinquency survey.
Although, there are very limited attempts being made to help homeowners and I do say limited because only a handful of homeowners are receiving permanent loan modifications under the current Obama administration's foreclosure prevention plan.
According to Freddie Mac fewer than 5% percent of modifications on loans owned or guaranteed by the mortgage giant were converted to long-term adjustments as of September 30.
Taking a longer range look, the Congressional Oversight Panel reported that as of September 1 the figures are even lower. Only 1.26% of all trial adjustments were made permanent after three months.
As is if foreclosures were not bad enough bankruptcies have spiked 33%. The number of bankruptcies for the third quarter have soared to the highest level since since 2005.
"The spike in bankruptcy filings for both consumers and businesses reflect the continuing effects of today's weak economy," said ABI executive director Samuel Gerdano. "With unemployment surpassing 10% and credit to businesses remaining tight, consumers and businesses are increasingly turning to the financial relief of bankruptcy."
In the midst of all this going on there have been reports of that the recession ended last summer.
"Despite the recession ending in mid-summer, the decline in mortgage performance continues, said Jay Brinkman, MBA's chief economists. "Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP."
I know we will get get out from under this financial rock, we always do, but seems like nothing is working. Nothing is improving and that we are ready to go down the tubes all over again.
So what is the answer? Are you sick of the economy? Are afraid you are going to lose your home and your job?
Maybe it is time for extreme measures because extreme problems call for extreme measures.
I am familiar with the Peter Finch's Oscar winning performance in Network and his famous speech, "I am as mad as hell and I'm not going to take this anymore," but in watching the scene today I never realized that back in 1976, the same situations were going on. Watch this scene and see if you don't think the same.
If you are like me and feel there has been no improvement. That we are about to be punched in the gut again before we have a chance to get back up. Then maybe we need to take a stand like Howard Beale says and all of us go outside and yell, "I'm as mad as hell and I'm not going to take it anymore," and do something about this financial disaster before it takes us down again.
We are gearing up up for another round of foreclosures with almost 350,000 option-ARM borrowers who owe more than when they first bought their homes thanks to unpaid interest accumulating. The first wave of these exotic loans, which allowed homebuyers to come to closing with little cash, are getting ready for a five year reset. At that time they become standard, amortizing loans, where originally borrowers were able to choose monthly, how much to pay: interest and principal, interest only, or a minimum amount less than the interest due.
This means another group of borrowers are being poised to pay some big home payments. A $400,000 home for example can see the mortgage payment jump from $1,287 to $2,593.
This resetting of loans with the already current amount of loans facing foreclosure is a cocktail for disaster. As of the latest report from the Mortgage Bankers Association, 9.64% of all mortgage loans were delinquent during the third quarter. That represents 4.5 million borrowers and is an increase from 9.24% in the prior three months.
The delinquency rate includes all mortgage loans in foreclosure are at least one payment behind and the amount of delinquencies is the highest ever recorded in the MBA delinquency survey.
Although, there are very limited attempts being made to help homeowners and I do say limited because only a handful of homeowners are receiving permanent loan modifications under the current Obama administration's foreclosure prevention plan.
According to Freddie Mac fewer than 5% percent of modifications on loans owned or guaranteed by the mortgage giant were converted to long-term adjustments as of September 30.
Taking a longer range look, the Congressional Oversight Panel reported that as of September 1 the figures are even lower. Only 1.26% of all trial adjustments were made permanent after three months.
As is if foreclosures were not bad enough bankruptcies have spiked 33%. The number of bankruptcies for the third quarter have soared to the highest level since since 2005.
"The spike in bankruptcy filings for both consumers and businesses reflect the continuing effects of today's weak economy," said ABI executive director Samuel Gerdano. "With unemployment surpassing 10% and credit to businesses remaining tight, consumers and businesses are increasingly turning to the financial relief of bankruptcy."
In the midst of all this going on there have been reports of that the recession ended last summer.
"Despite the recession ending in mid-summer, the decline in mortgage performance continues, said Jay Brinkman, MBA's chief economists. "Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP."
I know we will get get out from under this financial rock, we always do, but seems like nothing is working. Nothing is improving and that we are ready to go down the tubes all over again.
So what is the answer? Are you sick of the economy? Are afraid you are going to lose your home and your job?
Maybe it is time for extreme measures because extreme problems call for extreme measures.
I am familiar with the Peter Finch's Oscar winning performance in Network and his famous speech, "I am as mad as hell and I'm not going to take this anymore," but in watching the scene today I never realized that back in 1976, the same situations were going on. Watch this scene and see if you don't think the same.
If you are like me and feel there has been no improvement. That we are about to be punched in the gut again before we have a chance to get back up. Then maybe we need to take a stand like Howard Beale says and all of us go outside and yell, "I'm as mad as hell and I'm not going to take it anymore," and do something about this financial disaster before it takes us down again.
How to Get Motivated to Get Out of Debt
Getting motivated to get out of debt should be just as motivating, if not more than, anything else you would get motivated about. If your child was in a burning home, you would be pretty darned motivated to get them out of there, wouldn't you?
Well, being in debt can be just like being trapped in a burning building. If you can't pay your credit card bills or are facing bankruptcy that should be motivation enough to do something.
Make getting out a debt a personal challenge. Think about the consequences for a moment. Your insurance rates can go up from it, you can get embarrassing calls at work from collectors, it can prevent you from buying a car or home.
You have probably gotten used to a certain lifestyle and standard of living. Just thinking about confronting your debt to improve upon your financial situation may not sit well with you. You can probably easily talk yourself out of changing your spending habits and saving money. You may think if it ain't broke why fix it? Eventually, things might just break.
You need to ask yourself, am I happy living beyond my means? Do you want to be in debt for the rest of your life? Is debt affecting your personal life? If you want to achieve more in your life, you have to reach deep inside and activate one of the most basic human drives: motivation. Once the motivation process starts you will begin to make a commitment to yourself to get out of debt.
Friday, November 27, 2009
Will My Financial Situation Improve as I Get Older?
As you get older your finances should only get better if you are wise with your money while you are younger. The sooner you set out on your path to financial freedom, the better off you'll be when you get older.
But as you get older your financial needs will change. When we're young, the last thing we usually think about is retiring, but that should be one of the main things we think about. Instead we are generally concerned with material things, buying a house, raising a family, and getting our hands on everything we think we deserve. We usually leave out retirement from the equation until we're much older, but as we age we eventually reach a crossroad in our lives.
You can either continue to acquire more material things or you can start making an effort to plan for your financial future by saving money and maintaining a debt free lifestyle. The sooner you start saving the more time you have on your side.
Wednesday, November 25, 2009
Better Get Up Early on Black Friday if You Want To Catch These Deals
Black Friday 2009 is only two days away and retailers are offering some killer deals. Be on the look out for LCD HDTVs for half price or a Nikon camera marked down 40%.
Target: Westinghouse 32" LCD HD TV
Retail Price $429.99
Black Friday Price $246
Target: Razor Folding Aluminum Folding Scooter
Retail Price $29.99
Black Friday Price $17
Target: Chefmate Slow Cooker
Retail Price N/A
Black Friday Price $3
Chefmate Coffee Maker, sandwich maker and toasters also on sale for $3 each)
Walmart: TomTom One 125 Portable GPS
Retail Price $98
Black Friday Price $59
Walmart: Magnavox Blu-Ray Disc Player
Retail Price $128
Black Friday Price $78
Best Buy: Nikon Cool Pix S60 10-Megapixel Camera
Retail Price $299.99
Black Friday Price $179.99
Best Buy: Insignia 10-Megapixel Digital Camera
Retail Price $79.99
Black Friday Price $39.99
Toys "R" Us: Barbie Totally Hair Braid It Doll
Retail Price $19.99
Black Friday Price $9.99
Toys "R" Us: Webkinz & Lil' Kinz Plush
Retail Price $17.99
Black Friday Price $8.99
Toys "R" Us: Thomas & Friends Wooden Railway
Retail Price
Black Friday Price
Kohls: George Foreman Lean Mean Grill
Retail Price $39.99
Black Friday Sales Price $9.99
Target: Westinghouse 32" LCD HD TV
Retail Price $429.99
Black Friday Price $246
Target: Razor Folding Aluminum Folding Scooter
Retail Price $29.99
Black Friday Price $17
Target: Chefmate Slow Cooker
Retail Price N/A
Black Friday Price $3
Chefmate Coffee Maker, sandwich maker and toasters also on sale for $3 each)
Walmart: TomTom One 125 Portable GPS
Retail Price $98
Black Friday Price $59
Walmart: Magnavox Blu-Ray Disc Player
Retail Price $128
Black Friday Price $78
Best Buy: Nikon Cool Pix S60 10-Megapixel Camera
Retail Price $299.99
Black Friday Price $179.99
Best Buy: Insignia 10-Megapixel Digital Camera
Retail Price $79.99
Black Friday Price $39.99
Toys "R" Us: Barbie Totally Hair Braid It Doll
Retail Price $19.99
Black Friday Price $9.99
Toys "R" Us: Webkinz & Lil' Kinz Plush
Retail Price $17.99
Black Friday Price $8.99
Toys "R" Us: Thomas & Friends Wooden Railway
Retail Price
Black Friday Price
Kohls: George Foreman Lean Mean Grill
Retail Price $39.99
Black Friday Sales Price $9.99
Tuesday, November 24, 2009
Does Inflation Help With getting Out of Debt?
We are constantly hearing about the Federal Reserve trying to combat inflation. Things seem tame for now, but gas price increases can be looming their ugly heads again soon. So does inflation help with getting out of debt?
So many of us have drank the Kool-Aid a few years ago with the inflation scenario: "Finance now and pay off later with cheaper dollars." That's what so many people did and it led to the ultimate real estate crash. Unfortunately, the plan would have worked if everyone's income increased at the same rate as or a greater rate than inflation. For most of us this never happens and probably won't.
Stagnant economic conditions resulting from significant price spikes in things like gasoline and food always add to your debt burden because inflation erodes the buying power of your paycheck. Don't ever find yourself drinking the Kool-Aid and get caught up in the "buy it now before the price goes up" hype or you'll just dig yourself deeper into the hole with debt.
Monday, November 23, 2009
Has the Firt-Time Homebuyers Credit Been Extended?
President Obama approved the extension of the tax credit for first-time homebuyers to include certain home purchases that close no later than April 30, 2010. The homebuyers credit originated in February as part of an economic stimulus bill, and was due to expire December 1. More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department.
Under the extension, first-time homebuyers are eligible for a tax refund of up to $8,000 on the purchase of a principal residence.
- Homes must have a purchase price under $800,000 and can include newly-constructed or resale homes and single family detached, townhomes or condominiums. Excluded are vacation home and rental property purchases.
- Homes must be purchased after November 6, 2009 and before May 1, 2010, although home purchases subject to a binding sales contract signed by April 30, 2010 will be allowed. Closing must occur within 60 days.
- The income cap for qualifying has been raised to $125,000 for individuals and $225,000 for married couples, up from $75,000 and $150,000 respectively.
Many believe the extension and broadening of the program will help continue the momentum of the housing recovery.
What do think? Are you taking advantage the credit? Let us hear from you.
Under the extension, first-time homebuyers are eligible for a tax refund of up to $8,000 on the purchase of a principal residence.
- Homes must have a purchase price under $800,000 and can include newly-constructed or resale homes and single family detached, townhomes or condominiums. Excluded are vacation home and rental property purchases.
- Homes must be purchased after November 6, 2009 and before May 1, 2010, although home purchases subject to a binding sales contract signed by April 30, 2010 will be allowed. Closing must occur within 60 days.
- The income cap for qualifying has been raised to $125,000 for individuals and $225,000 for married couples, up from $75,000 and $150,000 respectively.
Many believe the extension and broadening of the program will help continue the momentum of the housing recovery.
What do think? Are you taking advantage the credit? Let us hear from you.
Sunday, November 22, 2009
Favorite Personal Financial Blogs Weekly Recap
- New York May allow the practice of at least 20 other states and start publishing the names of its biggest tax delinquents online. [Economix]
- A new debit card identity theft scheme is popping up in California, Missouri, Wisconsin, and other states. The thefts are largely tied to Hancock Fabric stores, in which debit card information and pin numbers are stolen and money is withdrawn from the account. Authorities estimate around a $40,000 loss for banks. [The Consumerist]
- Online microlending has been all the rave in recent years. One of the most popular is Kiva, which is allows you to make loan to low income entrepreneurs in developing countries. But it is not longer practical for it be true "person to person lending." [My Money Blog]
- A $350 a night luxury resort in Malaysia will give you a free night if you encounter more than one inch of rain in any 7 a.m. to 7 p.m. period. Willing to hope for rain in exchange for free digs? [Savvy Sugar]
- Has a friend or relative asked you to co-sign for a credit card or other loan? Here are four excellent questions to ask before you go through with it. [CreditCards.com]
- A new debit card identity theft scheme is popping up in California, Missouri, Wisconsin, and other states. The thefts are largely tied to Hancock Fabric stores, in which debit card information and pin numbers are stolen and money is withdrawn from the account. Authorities estimate around a $40,000 loss for banks. [The Consumerist]
- Online microlending has been all the rave in recent years. One of the most popular is Kiva, which is allows you to make loan to low income entrepreneurs in developing countries. But it is not longer practical for it be true "person to person lending." [My Money Blog]
- A $350 a night luxury resort in Malaysia will give you a free night if you encounter more than one inch of rain in any 7 a.m. to 7 p.m. period. Willing to hope for rain in exchange for free digs? [Savvy Sugar]
- Has a friend or relative asked you to co-sign for a credit card or other loan? Here are four excellent questions to ask before you go through with it. [CreditCards.com]
Talk about Money! New Moon Makes $140.7 Million in Its Opening weekend.
Talk about a way to make some money. Write a successful book series and then have them turned into movies. The Twilight Saga: New Moon scored big this weekend with $140.7 million hall in its opening weekend November 20. This places the tale of a vampire in love with a human third for an opening weekend. Just behind The Dark Knight and Spiderman 3.
The Vancouver estate used to reflect Edward Cullen's family home went up for sale last week too for $3.3 million. With that kind of money going around I am sure that home isn't selling as a short sale.
After Stuffing Yourself With Turkey Head Over Toys R Us
Most stores open at 5:00 a.m. on Black Friday, but for Toys R Us the early bird catches the worm.
The toy store giant will be opening its doors nationwide at midnight on Thanksgiving. The night begins with 70 doorbuster deals such as:
- A free $50 gift card with the purchase of an iPod touch
- Buy-2-get-1 free sale on Batman "Dark Knight" action figures
- $75 of savings on a Razor scooter worth $249.99
- The first 100 shoppers will receive a ticket to buy coveted electronic hamster toy, Zhu Zhu Pets.
Toys R Us normally opens its doors at the crack of dawn on Black Friday, but this year will also have 100 undavertised "mystery" deals that will be revealed at 12:01 a.m. on Wednesday, Novemer 25 on the company's Web site.
The toy store giant will be opening its doors nationwide at midnight on Thanksgiving. The night begins with 70 doorbuster deals such as:
- A free $50 gift card with the purchase of an iPod touch
- Buy-2-get-1 free sale on Batman "Dark Knight" action figures
- $75 of savings on a Razor scooter worth $249.99
- The first 100 shoppers will receive a ticket to buy coveted electronic hamster toy, Zhu Zhu Pets.
Toys R Us normally opens its doors at the crack of dawn on Black Friday, but this year will also have 100 undavertised "mystery" deals that will be revealed at 12:01 a.m. on Wednesday, Novemer 25 on the company's Web site.
Black Friday Deals Stay on Target.
As we reported before Target is planning on getting Black Friday shoppers in its doors by offering $3 toasters and coffemakers, huge sales on HDTVs, and discounts as much as 50% on clothes and toys. Other deals include:
- A westhinghouse 32-inch LCD HDTV for $246. According to Brad Olson, founder of Gottadeal.com, That is lowest price that we've ever seen for that model."
- $3 Chefmate appliances such as toasters, coffeemakers, and sandwich makers.
- A 40-inch Apex 1080p LCD HDTV for $449 with a $10 gift card.
- A TomTom GPS for $97 and a Garmin GPS for $179
- A RCA dual screen portable DVD player for $88
- A $39 Polaroid V 130 Camcoder
- 50% off on select toys and children's clothing for between $5 to $7.
The retailer is also offering a free gift card for $10 when you spend $100 or more at stores from 5 a.m. to n oon on Black Friday.
Be sure to watch that fine print though because according to Target's circular some of the sales are only valid on Black Friday while other will be good through Saturday.
Target's circular is expected to be released today NOV. 22.
Black Friday Dirty Tricks, But shhhh...They're a Secret.
The big shopping day just after Thanksgiving is only a few days away and retailers will be passing out their advertising circulars to let you know of all their great Black Friday deals. But are their deal so great and will you be the lucky one to take advantage of it? Here are some things to look out for:
1. Look at the fine print that appears at the bottom of the circulars.
2. Watch terms like "While supplies last," "Minimum 2 per store," "No rainchecks" or "All items are available in limited quantities."
3. Take a second look at those circulars as some will say tings like "Minimum of 5 per store" on models of large screen plasma and HDTVs or popular brands of home appliances like washer and dryers.
Many retailers won't be tricking or cheating consumers this year, but be sure to check your deal list twice for that fine print so you aren't disappointed when you get to the store. Some of these tricks are enough to cause shopping rage, but maybe you can play the biggest dirty trick of them all and just not shop at the stores that play these games.
1. Look at the fine print that appears at the bottom of the circulars.
2. Watch terms like "While supplies last," "Minimum 2 per store," "No rainchecks" or "All items are available in limited quantities."
3. Take a second look at those circulars as some will say tings like "Minimum of 5 per store" on models of large screen plasma and HDTVs or popular brands of home appliances like washer and dryers.
Many retailers won't be tricking or cheating consumers this year, but be sure to check your deal list twice for that fine print so you aren't disappointed when you get to the store. Some of these tricks are enough to cause shopping rage, but maybe you can play the biggest dirty trick of them all and just not shop at the stores that play these games.
What Does a Financial Planner Do and I Should Get One?
A financial planner is certified in developing and implementing a customized financial plan for you. Generally a financial planner works with you on a regular basis to help you build your portfolio. Certified financial planners are required to take a five part course, pass a ten hour exam, and complete fifteen additional hours of additional training a year to become certified. You will find many financial planners have security licenses, which allow them to sell you financial products that they recommend.
Over time you will find that you may not require the services of a professional financial planner on a regular basis. A visit with your accountant every now and then may be enough to help manage your debt since financial planning isn't hard to do. There are some circumstances when a financial planner may be right for you:
1. You earn good money, but you seem not able to save anything on a regular basis or you don't even know where all your money goes every month.
2. You have tough financial questions that you feel you can't find the answers to and need some expert advice. A good example would be your company is downsizing and you want to know what you should do about your 401K. You can get advice from a financial planner.
3. You have a savings and retirement plan in place that is just sitting there and it is making money without you doing anything. Should you leave it alone or start playing a more active role in managing your finances with the assistance of a financial planner?
Wednesday, November 18, 2009
Does Congress Have a Better Idea When it Comes to Overdraft Protection?
We reported previously that the Fed announced new rules that would limit overdraft fees charged by bank and credit unions. But now Congress wants to throw its hat into the ring too.
Both Sen. Christopher Dodd (D-Conn) and Rep. Carolyn Maloney (D-N.Y.) introduced overdraft legislation last month, as well. Here is what Ismat Sahara Mangla found out about Congress' plan.
- The Fed mandates an opt-in program on overdraft protection for ATM and debit card transactions, but it says nothing about checks or recurring electronic payments. Congress could extend the opt-in requirement for all such transactions.
- Both Dodd's and Maloney's bills limit the number of overdraft fees banks can charge per month and per year. The Fed is Mum on this.
- The Fed doesn't address the issue of merchant holds that can trigger overdrafts. When a consumer uses a debit card to book a car rental, pay for gas or hold a hotel room, merchants often put a hold on the funds in the customers checking account--and that hold is typically for a lot more than the amount of the transaction. Such holds can trigger overdrafts because the consumer assumes that the funds in his or her checking account are available for other purchases.
- Any opt-in program should also disclose the annual percentage rate you'll pay for the overdraft protection.
Do you think Congress' plan is more in depth and better than the Fed's?
How Do You Avoid Foreclosure? Try a Counselor.
Many of the people we have covered with mass amounts of debt have turned to credit counselors to pay off their debt. So why not do the same to avoid foreclosing on your home?
A study released today revealed that housing counselors are helping troubled homeowners avoid foreclosure and lower their monthly payments.
The study found that homeowners facing foreclosure are 60% more likely to hold onto their homes if they received counseling. The study performed by the Urban Institutes also discovered that borrowers who received counseling were able to obtain loan modifications with payments $454 lower than those who did not use a counselor.
So far 750,000 people have received counseling under the program, which is administered by Neighbor Works America.
Remember if you are approached for counseling to help prevent you from a foreclosure be sure the counselors are approved by the federal Department of Housing and Urban Development. Counselors who are approved do not charge for their services.
Are you facing a foreclosure? Have you reached out to a counselor to help you avoid foreclosure? Tell us about your experience.
A study released today revealed that housing counselors are helping troubled homeowners avoid foreclosure and lower their monthly payments.
The study found that homeowners facing foreclosure are 60% more likely to hold onto their homes if they received counseling. The study performed by the Urban Institutes also discovered that borrowers who received counseling were able to obtain loan modifications with payments $454 lower than those who did not use a counselor.
So far 750,000 people have received counseling under the program, which is administered by Neighbor Works America.
Remember if you are approached for counseling to help prevent you from a foreclosure be sure the counselors are approved by the federal Department of Housing and Urban Development. Counselors who are approved do not charge for their services.
Are you facing a foreclosure? Have you reached out to a counselor to help you avoid foreclosure? Tell us about your experience.
Tuesday, November 17, 2009
Visions of 50-inch HDTVs, Blu-Ray Players and $7 Fleece jackets Dance In Wal-Mart Shoppers Heads
Black Friday is on it's way as TVs top the deals at Wal-Mart's post Thanksgiving sale. According to a copy of the retailer's circular obtained by CNNMoney.com the much anticipated Black Friday deals will focus on gadgets such as high definition TVs, laptops and Blu-Ray players.
Items that have confirmed prices for the day after Thanksgiving sale are:
- Sanyo 50-inch plasma 720p HDTV for $598
- Magnavox Blu-Ray player for $78
- Tom Tom GPS for $59
- Select children's clothing for as low as $3
- $7 reversible fleece jacket for kids and adults
- Barbie Power Wheels Ride-On, a toy Jeep, for $88
Retailer watchers are expecting sellers to box it out with discounts on several models of HDTVs.
Other early bird deals on Black Friday include:
- A 32 inch Emerson LCD 720p HDTV for $248
- A 42 inch Emerson Plasma 720p HDTV for $448
Computer wise the circular reveals:
- eMachine laptop with a 15.6 inch LCD display,2GB memory and 160GB hard rive for $198
- Hewlett-Packard laptap with a 15.6 inch display, 3GB memory and 250GB hard drive for $298
- Phillips 4 GB Mp3/Video player for $29
- Xbox 360 console with three games for $199
Wal-Mart's Black Friday electronics and appliance deal include:
- 8GB iPod Touch for $195 including a $50 iTunes gift card
- $4 home appliances including a slow cooker and mini-mixer
- $2 DVDs
- Select toys priced between $5 and $9
Wal-Mart's rival retailer Target is boasting a 32-inch Westinghouse LCD HDTV for $246.
Wal-Mart will exactingly will release its Black Friday deals on November 23.
Are you jumping on these deals? Do shop and get in the mix of Black Friday madness? Lets hear from you.
Gift Card Fees: The Next Fed Target
First there was the Credit Card Act signed into law in May, then the Fed decided to crack down on overdraft fees charged by banks and now regulators offer rules to limit inactivity fees and expiration dates on gift certificates and cards.
Under the Fed's new rules fees and expiration dates applied to gift certificates, store gift cards, and general use prepaid cards would be restricted.
Unless users were inactive for at least a year the new rules would prevent issuers from charging dormancy fees on cards. After the year point issuers are then limited to on fine per month. The new rules also prohibit issuers for monthly maintenance, balance inquiry, transactions, reloading, and point of sale.
Do fees on gift cards prevent you from buying them as gifts? Do you receive gift cards for gifts and then never use them?
2009's Thanksgiving May Be The Cheapest Since 2000
I can remember walking through my local Vons grocery store Thanksgiving week nine years ago and thinking you could have a full blown dinner for less than $15. The store had some crazy cheap turkeys with some kind of spend $10 and get a free turkey. To top it you could get a bag of potatoes for $1, canned vegetables for 50 cents a piece, and a loaf of bread for a dollar. I don't know if there will be those kinds of deals this year, but Thanksgiving dinner is going to be cheaper this year than last.
With the economy still in a downward motion people cooking a traditional feast can give thanks for a dinner that will be less expensive thank last year.
According to the American Farm Bureau Federation, the usual turkey dinner with turkey, stuffing, mashed potatoes and gravy, cranberries, pumpkin pie and the trimmings will be 4% this year. That's the biggest decline since 2000, says Bloomberg News.
The cost of this years feast for 10 is $42.91 on average this year. Compared to last years average of $44.61. That's a $1.70 decline according to the federation's 24 annual informal price survey of the usual Thanksgiving items.
Have you started you shopping for your families Thanksgiving meal? Is it cheaper this year compared to last?
With the economy still in a downward motion people cooking a traditional feast can give thanks for a dinner that will be less expensive thank last year.
According to the American Farm Bureau Federation, the usual turkey dinner with turkey, stuffing, mashed potatoes and gravy, cranberries, pumpkin pie and the trimmings will be 4% this year. That's the biggest decline since 2000, says Bloomberg News.
The cost of this years feast for 10 is $42.91 on average this year. Compared to last years average of $44.61. That's a $1.70 decline according to the federation's 24 annual informal price survey of the usual Thanksgiving items.
Have you started you shopping for your families Thanksgiving meal? Is it cheaper this year compared to last?
Monday, November 16, 2009
How Can I Make Extra Money To Get Out of Debt? Step # 13
My debt was going through the roof when I was going through my divorce and my debt out weighed my income. Even though I was able to make the minimum payments there was no way I was going to get those maxed out credit cards paid off unless a started slapping more money towards them.
I began to sell everything from my Cd's to parts of my Star Wars collection to pay more than the minimums on my bills. Also, I joined forces to with family members to have garage sales to even sell some of my furniture.
Almost immediately I took on a second job cleaning the local YMCA, as well. I would work my full time job at the bank from 8:30 to 5:30, come home and have dinner, take a three hour nap, and then go work at the YMCA from 9:30 to 2:00. I worked at the YMCA six days a week and I worked that routine for an entire year. So what can you do to make extra money?
STEP # 13
The suggestions I have just offered should be just the minimum of the things you can do to make extra money. Any of these should be easy to associate with money saving ideas that you can put into your game plan. Think about how you can make extra money. One way may be getting rid of an unneeded vehicle. It may enable you to raise some serious cash to put towards some of your debts and reduce your monthly expenses. As I suggested early a yard or garage sale can help you get rid of the clutter around the house and make money at the same time. I suggested it, but have you taken on a part time job? Check out your overtime options at work. Read the "part time" work ads in the classified sections of your local newspaper to find opportunities to make extra money.
If you really think about there are all kinds of ways to make extra money. You need to just get out there and do it.
I began to sell everything from my Cd's to parts of my Star Wars collection to pay more than the minimums on my bills. Also, I joined forces to with family members to have garage sales to even sell some of my furniture.
Almost immediately I took on a second job cleaning the local YMCA, as well. I would work my full time job at the bank from 8:30 to 5:30, come home and have dinner, take a three hour nap, and then go work at the YMCA from 9:30 to 2:00. I worked at the YMCA six days a week and I worked that routine for an entire year. So what can you do to make extra money?
STEP # 13
The suggestions I have just offered should be just the minimum of the things you can do to make extra money. Any of these should be easy to associate with money saving ideas that you can put into your game plan. Think about how you can make extra money. One way may be getting rid of an unneeded vehicle. It may enable you to raise some serious cash to put towards some of your debts and reduce your monthly expenses. As I suggested early a yard or garage sale can help you get rid of the clutter around the house and make money at the same time. I suggested it, but have you taken on a part time job? Check out your overtime options at work. Read the "part time" work ads in the classified sections of your local newspaper to find opportunities to make extra money.
If you really think about there are all kinds of ways to make extra money. You need to just get out there and do it.
Sunday, November 15, 2009
Sharing the Love With Other Personal Finance Bloggers
I have been working on improving "The Debt Free Advocate" to be the place to go for financial help. A tip I had picked up from ProBlogger Darren Rowse is to show some love to your fellow bloggers.
I follow several personal finance blogs that offer great tips on debt and finance and was thinking a should spread the love. If I love these blogs others could possibly too. So we are going to start recapping the choice articles of the blogs we follow to help spread financial education.
- Always read the fine print: the House approved a landmark plan that would cost $1.1 trillion over 10 years and extend coverage to 36 million uninsured Americans. Now What? Find out the bill will actually affect consumers. Also, more credit card company shenanigans: One cardholder shares her experience with Citi: The bank will double her interest rate unless she transfers $5,000 of other debt onto her Citi Credit Card [The Consumerist]
- Shopping around for a new stock broker? Christmas came early. Digerati gives you the cheat sheet on their favorite online stock brokers, along with limited time promotions for new account holders. [Digerati Life]
- Modeled after New York Magazine's "Sex Diaries," "Money Diaries" is an ongoing collection of stories that track the spending habits of real people over the period of seven days. what are your thoughts on the single mom with bad habits and bad checks? [I Will Teach You to Be Rich]
- The recession takes it toll in office politics. A behavioral economics look at how employees have to carry the weight of laid-off co-workers. [Marketplace]
- Parents worried about the cost of higher education often consider sending their kids to a community college in hopes of a transfer to a better school. But this isn't always the smartest thing to do. [The College Solution Blog]
- A Harvard economist passes judgement on the expanded home buyers tax credit that President Obama signed into law last week. The professor's verdict? The credit encourages "purely mindless house swapping." [Economix]
- Tough times make us more willing and likely to protect the things we have, but extended warranties probably aren't worth the extra cost [Wise Bread]
- Watching The Karate Kid can teach you how not to accumulate credit debt. Use visualization techniques to keep your spending in check. [Free Money Finance]
- Thinking about re gifting something this holiday season? Brad Tuttle has some rules on how to do it right. [It's Your Money]
- When it comes to car insurance, pricing is based on 10 factors that are out of your control. So it pays to shop around. [MintLife]
- Recent credit card reform has prompted the industry to enact the Safe Credit Revision Everyone Wins Undertaking, also known as S.C.R.E.W.U. Animator Mark Fiore explains it in the Video below. [The Consumer Reporter]
I follow several personal finance blogs that offer great tips on debt and finance and was thinking a should spread the love. If I love these blogs others could possibly too. So we are going to start recapping the choice articles of the blogs we follow to help spread financial education.
- Always read the fine print: the House approved a landmark plan that would cost $1.1 trillion over 10 years and extend coverage to 36 million uninsured Americans. Now What? Find out the bill will actually affect consumers. Also, more credit card company shenanigans: One cardholder shares her experience with Citi: The bank will double her interest rate unless she transfers $5,000 of other debt onto her Citi Credit Card [The Consumerist]
- Shopping around for a new stock broker? Christmas came early. Digerati gives you the cheat sheet on their favorite online stock brokers, along with limited time promotions for new account holders. [Digerati Life]
- Modeled after New York Magazine's "Sex Diaries," "Money Diaries" is an ongoing collection of stories that track the spending habits of real people over the period of seven days. what are your thoughts on the single mom with bad habits and bad checks? [I Will Teach You to Be Rich]
- The recession takes it toll in office politics. A behavioral economics look at how employees have to carry the weight of laid-off co-workers. [Marketplace]
- Parents worried about the cost of higher education often consider sending their kids to a community college in hopes of a transfer to a better school. But this isn't always the smartest thing to do. [The College Solution Blog]
- A Harvard economist passes judgement on the expanded home buyers tax credit that President Obama signed into law last week. The professor's verdict? The credit encourages "purely mindless house swapping." [Economix]
- Tough times make us more willing and likely to protect the things we have, but extended warranties probably aren't worth the extra cost [Wise Bread]
- Watching The Karate Kid can teach you how not to accumulate credit debt. Use visualization techniques to keep your spending in check. [Free Money Finance]
- Thinking about re gifting something this holiday season? Brad Tuttle has some rules on how to do it right. [It's Your Money]
- When it comes to car insurance, pricing is based on 10 factors that are out of your control. So it pays to shop around. [MintLife]
- Recent credit card reform has prompted the industry to enact the Safe Credit Revision Everyone Wins Undertaking, also known as S.C.R.E.W.U. Animator Mark Fiore explains it in the Video below. [The Consumer Reporter]
The President Meets With Others to Brainstorm About Job Creation. What's there to Brainstorm about? Just Do It!
President Obama said he would hold a jobs forum at the White House sometime in December to discuss combating the 10.2% unemployment rate.
"Even though we've slowed the loss of jobs--and today's report on the continued decline in unemployment claims is a hopeful sign--the economic growth that we've seen has not yet led to the job growth that we desperately need," the President said.
"We all know that there are limits to what government can and should do, even during such difficult times. But we have an obligation to consider every additional responsible step that we can to encourage and accelerate job creation in this country," he added.
Slowed the loss of jobs? Has the climbing unemployment slowed down?
What's there to brainstorm about? We need to get home values back up and get people spending again to get out of this hole. Unless people start feeling abundance and they aren't thinking they're next to lose their job, it isn't going to happen.
What do you think? Will job creation be enough to boost the economy?
"Even though we've slowed the loss of jobs--and today's report on the continued decline in unemployment claims is a hopeful sign--the economic growth that we've seen has not yet led to the job growth that we desperately need," the President said.
"We all know that there are limits to what government can and should do, even during such difficult times. But we have an obligation to consider every additional responsible step that we can to encourage and accelerate job creation in this country," he added.
Slowed the loss of jobs? Has the climbing unemployment slowed down?
What's there to brainstorm about? We need to get home values back up and get people spending again to get out of this hole. Unless people start feeling abundance and they aren't thinking they're next to lose their job, it isn't going to happen.
What do you think? Will job creation be enough to boost the economy?
Has the Reduced Gas Prices Helped You Get Out of Debt?
Hasn't it been bad enough your debt has been going up, your wages are going down or worse (you've lost your job), and gas prices have been going back up?
Gas prices have risen about 20 cents per gallon in the past month to national average price of $2.65 a gallon for unleaded regular, says gasbuddy.com. All this when at the time of year when gasoline demand is usually the lowest.
How are gas prices going up with demand down? With oil looming around $80 a barrel, prices are increasing because of the week dollar and by likely increasing global oil demand during the economic recovery has essentially doubled since hitting a post level boom low of about $35 a barrel a year ago.
Factors are lining up that could push gas prices back over $4 a gallon sometime next year.
So how would $4 a gallon for gas effect you in the pocket book? Has the lower prices helped you reduce your debt or would $4 a gallon again put the nail right back in the coffin? Lets hear from you.
Gas prices have risen about 20 cents per gallon in the past month to national average price of $2.65 a gallon for unleaded regular, says gasbuddy.com. All this when at the time of year when gasoline demand is usually the lowest.
How are gas prices going up with demand down? With oil looming around $80 a barrel, prices are increasing because of the week dollar and by likely increasing global oil demand during the economic recovery has essentially doubled since hitting a post level boom low of about $35 a barrel a year ago.
Factors are lining up that could push gas prices back over $4 a gallon sometime next year.
So how would $4 a gallon for gas effect you in the pocket book? Has the lower prices helped you reduce your debt or would $4 a gallon again put the nail right back in the coffin? Lets hear from you.
Bank of America Releases "Credit 101" To Help Consumers Manage Credit
Understanding how credit works is critical for anyone obtaining a credit card, line of credit or any other financial product. Bank of America Global Card Services is working to help current and potential customers understand and manage credit wisely.
The bank recently released "Credit 101", the first of a series of radio segments and articles to provide consumer oriented advice. Each one include expert tips from a member of the Bank of America executive team. "Credit 101," featuring Jennifer Ehresman, Global card Services Customer Experience executive, was released to the media and is now being distributed throughout the United States. It has been replaced in more than 1,000 print, radio, and online media outlets and has reached approximately 22 million consumers to date.
Credit matters when it comes to applying for a job or a loan, purchasing insurance or seeking an apartment to live in. If you don't know your credit score, or haven't maintained a good credit rating, you might be in for a surprise.
"There are so many different reasons for people to pay attention to their credit report," Ehresman said. "Pay bills on time and use credit wisely, and over time you'll lay the foundation for a car loan or mortgage loan approval. Knowing some basic information about your credit will help you stay on top of it and use it to your advantage."
Here are some tips to help manage credit and improve your credit rating:
1. Always pay your bills on time. Late payments on rent and utility bills may not show up, but being late on your credit cards will be reported to the credit agencies and will show up on your credit report. If you are having trouble paying your full bill, pay at least the minimum amount due, which can be found on your monthly statement. Consider setting up automatic reminders sent to you via-email or to your mobile device so that you don't overlook a due date.
2. Don't overspend. If you're maxed out on all your credit cards, maybe its time to rethink your spending habits. When shopping, only charge items to your credit card that you can afford to pay back.
3. Develop a budget. Maker sure that the budget you create is one that you can realistically follow. Be sure to include ways to start paying off the debt you've already accumulated.
4. Know your interest rates. If you carry a balance on your credit cards, make sure you read the details about your interest rate so you can understand what it costs when you don't pay your balance in full. Also read the information about any additional fees that may be charged to your account. To help its customers understand their account pricing, Bank of America recently announced it will introduce a credit card Clarity commitment, a one-page explanation of the customer's credit card rates and fees.
5. Review your credit report. You can legally obtain a free copy of your credit report from each of three credit agencies once a year. Make sure you check your credit because it is an overview of your financial history. In addition to creditors, employers, landlords and insurance companies can review your credit report. These reports can contain errors, so if you find one in review, report it promptly so that your score isn't affected by the error. "Stay in control of your credit to achieve your financial goals," Ehresman says. "Your credit matters, and managing it proactively can help you improve your rating and enjoy the benefits that credit can offer."
The bank recently released "Credit 101", the first of a series of radio segments and articles to provide consumer oriented advice. Each one include expert tips from a member of the Bank of America executive team. "Credit 101," featuring Jennifer Ehresman, Global card Services Customer Experience executive, was released to the media and is now being distributed throughout the United States. It has been replaced in more than 1,000 print, radio, and online media outlets and has reached approximately 22 million consumers to date.
Credit matters when it comes to applying for a job or a loan, purchasing insurance or seeking an apartment to live in. If you don't know your credit score, or haven't maintained a good credit rating, you might be in for a surprise.
"There are so many different reasons for people to pay attention to their credit report," Ehresman said. "Pay bills on time and use credit wisely, and over time you'll lay the foundation for a car loan or mortgage loan approval. Knowing some basic information about your credit will help you stay on top of it and use it to your advantage."
Here are some tips to help manage credit and improve your credit rating:
1. Always pay your bills on time. Late payments on rent and utility bills may not show up, but being late on your credit cards will be reported to the credit agencies and will show up on your credit report. If you are having trouble paying your full bill, pay at least the minimum amount due, which can be found on your monthly statement. Consider setting up automatic reminders sent to you via-email or to your mobile device so that you don't overlook a due date.
2. Don't overspend. If you're maxed out on all your credit cards, maybe its time to rethink your spending habits. When shopping, only charge items to your credit card that you can afford to pay back.
3. Develop a budget. Maker sure that the budget you create is one that you can realistically follow. Be sure to include ways to start paying off the debt you've already accumulated.
4. Know your interest rates. If you carry a balance on your credit cards, make sure you read the details about your interest rate so you can understand what it costs when you don't pay your balance in full. Also read the information about any additional fees that may be charged to your account. To help its customers understand their account pricing, Bank of America recently announced it will introduce a credit card Clarity commitment, a one-page explanation of the customer's credit card rates and fees.
5. Review your credit report. You can legally obtain a free copy of your credit report from each of three credit agencies once a year. Make sure you check your credit because it is an overview of your financial history. In addition to creditors, employers, landlords and insurance companies can review your credit report. These reports can contain errors, so if you find one in review, report it promptly so that your score isn't affected by the error. "Stay in control of your credit to achieve your financial goals," Ehresman says. "Your credit matters, and managing it proactively can help you improve your rating and enjoy the benefits that credit can offer."
How Do I Avoid Overdraft Fees? 5 Steps How.
Bank overdraft fees can really add up fast. Some banks charge as much as $39 if you overdraw your checking account, which can wreak havoc on your bank book if you don't get it under control.
But new rules are underway to curtail the overdraft fees that banks and last Thursday the Federal Reserve released a new rule to prohibit banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have.
The new CARD Act is going in effect soon and rightly so, but should we really need to put the Kibosh the overdraft fees banks charge.
People do make mistakes, but you really shouldn't be overdrawing your checking account. If you are spending more than you make and intentionally over draw your account you deserve to pay the overdraft fees. The banks do make a ton of money from others misfortune, but you should think of it more as a deterrent from you overdrawing your account rather than the bank is just out to make money. I charge a $50 a penalty to my renters for being late on paying their rent, but I don't do it to make money, although I have, it is used as a way to make people think twice about being late the rent.
So are you tired of the those pesky overdraft fees the banks charge? Here's what you can do to help prevent that from happening.
Keep a buffer in your checking account
Keep an extra cash cushion in your account at all times so you won't overdraw your account for an emergency expense or if you incorrectly calculate your balance.
Sign up for automatic low balance alerts
If you request it, most banks will alert you via either e-mail or text message, that your balance has fallen below a certain level once you get that alert hold off on additional purchases or withdrawals until you've put more money in your account.
Link your checking account to a savings account
Once you've established a link, your bank will withdraw funds from the savings account to cover the overdraft. This service customarily costs $5 to $10 per transaction, so while it's not free, it certainly beats a $35 overdraft fee.
Consider Cash
Check your balance before hitting up the ATM, and only withdrawal what's available. Yes, it may seem obvious, but it's still a surefire method to avoiding overdraft fees.
Opt Out
While the new regulations will require consumers to opt in, most banks will let you opt out now. You just have to call and ask. But remember, once you've opted out of overdraft protection, your card will be rejected if you try to spend more than you have.
On last piece of advice...balance your check register and just like with your credit cards, don't spend money you don't have!
But new rules are underway to curtail the overdraft fees that banks and last Thursday the Federal Reserve released a new rule to prohibit banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have.
The new CARD Act is going in effect soon and rightly so, but should we really need to put the Kibosh the overdraft fees banks charge.
People do make mistakes, but you really shouldn't be overdrawing your checking account. If you are spending more than you make and intentionally over draw your account you deserve to pay the overdraft fees. The banks do make a ton of money from others misfortune, but you should think of it more as a deterrent from you overdrawing your account rather than the bank is just out to make money. I charge a $50 a penalty to my renters for being late on paying their rent, but I don't do it to make money, although I have, it is used as a way to make people think twice about being late the rent.
So are you tired of the those pesky overdraft fees the banks charge? Here's what you can do to help prevent that from happening.
Keep a buffer in your checking account
Keep an extra cash cushion in your account at all times so you won't overdraw your account for an emergency expense or if you incorrectly calculate your balance.
Sign up for automatic low balance alerts
If you request it, most banks will alert you via either e-mail or text message, that your balance has fallen below a certain level once you get that alert hold off on additional purchases or withdrawals until you've put more money in your account.
Link your checking account to a savings account
Once you've established a link, your bank will withdraw funds from the savings account to cover the overdraft. This service customarily costs $5 to $10 per transaction, so while it's not free, it certainly beats a $35 overdraft fee.
Consider Cash
Check your balance before hitting up the ATM, and only withdrawal what's available. Yes, it may seem obvious, but it's still a surefire method to avoiding overdraft fees.
Opt Out
While the new regulations will require consumers to opt in, most banks will let you opt out now. You just have to call and ask. But remember, once you've opted out of overdraft protection, your card will be rejected if you try to spend more than you have.
On last piece of advice...balance your check register and just like with your credit cards, don't spend money you don't have!
Be Careful With Your Debit Card on Black Friday.
We stress using your debit card rather than your credit cards to help keep from getting into debt over the holiday season. This is the time of year retailers get back in the black and consumers get put into the red. But experts say it's best to leave your debit card at home on Black Friday.
Here is what they say about keeping your debit card safe.
Read up in refunds
Unlike transactions made by a cash or credit card, debit card purchases that are returned or disputed might not be refunded immediately. That's because debit card purchases fall under Federal Reserve Board Regulation E, which makes them instantaneous transactions with third parties. "So you won't receive any money back from a mistaken transaction until after the dispute is resolved," says Carrie Coghill Kuntz, spokeswoman for CreditFYI.com, in an interview with WalletPop.
Stay away from surfing
Paying via debit card is the equivalent of wiring a retailer cash. And if while shopping online you accidentally put too many item in your virtual basket, or hit your browser's "back" button and reload the transaction, you might be out of luck when trying to get a refund.
Act Fast
If you learn your debit card has been used fraudulently, report it to your bank (or the card issuer) immediately. Waiting longer than two business days can inflate your liability to as much as $500.
Don't bank on your bank
Unlike a credit card issuer, your bank isn't monitoring your spending habits. Which means if your card is used suspiciously or appears to be stolen, your bank won't shut down your debit card. That means the responsibility to monitor spending and suspicious behavior falls squarely on your shoulders.
Check your credit score
Scan your score and full credit report report before shopping. That will ensure you're starting out the shopping season with a factual report and with the highest score possible. And give you a good starting point to detect any fraudulent activity that may occur during the holiday season.
If you can use your debit card more than your credit card, but be sure to follow these techniques to keep your stress level down down during the holidays.
Here is what they say about keeping your debit card safe.
Read up in refunds
Unlike transactions made by a cash or credit card, debit card purchases that are returned or disputed might not be refunded immediately. That's because debit card purchases fall under Federal Reserve Board Regulation E, which makes them instantaneous transactions with third parties. "So you won't receive any money back from a mistaken transaction until after the dispute is resolved," says Carrie Coghill Kuntz, spokeswoman for CreditFYI.com, in an interview with WalletPop.
Stay away from surfing
Paying via debit card is the equivalent of wiring a retailer cash. And if while shopping online you accidentally put too many item in your virtual basket, or hit your browser's "back" button and reload the transaction, you might be out of luck when trying to get a refund.
Act Fast
If you learn your debit card has been used fraudulently, report it to your bank (or the card issuer) immediately. Waiting longer than two business days can inflate your liability to as much as $500.
Don't bank on your bank
Unlike a credit card issuer, your bank isn't monitoring your spending habits. Which means if your card is used suspiciously or appears to be stolen, your bank won't shut down your debit card. That means the responsibility to monitor spending and suspicious behavior falls squarely on your shoulders.
Check your credit score
Scan your score and full credit report report before shopping. That will ensure you're starting out the shopping season with a factual report and with the highest score possible. And give you a good starting point to detect any fraudulent activity that may occur during the holiday season.
If you can use your debit card more than your credit card, but be sure to follow these techniques to keep your stress level down down during the holidays.
Saturday, November 14, 2009
You Know Times Are Tough Even When the Battlestar Galactica Get Repossessed!
As some of you know collection agencies are relentless here on earth, but how about in outer space?
We have lots of suggestions on how you should handle collectors and collection agencies, but being a sci-fi fan I found this video on how the crew of the Galactica deals with repossession. This may not be how we should handle things here on earth. On second though maybe it is.
We have lots of suggestions on how you should handle collectors and collection agencies, but being a sci-fi fan I found this video on how the crew of the Galactica deals with repossession. This may not be how we should handle things here on earth. On second though maybe it is.
Thursday, November 12, 2009
With Too Many Houses For Sale Will We Ever Get Out of the Recession?
We asked the question, "With Tightened Credit Will We Ever Get Out of the Recession?" Now we expand on that. There are still to many houses for sale.
Things are picking up in the housing market. My own neighborhood is on fire. Homes are going up left and right. For the past year my neighborhood was half full. Now it's almost over flowing.
Home price have been rising in recent months. Finally! After such a long plunge the National Association of Realtors and the S&P Case-Shiller national index report that prices have risen and Zillow.com says fewer Americans owe more than their property is worth.
According to the Census Department about one in every seven homes was vacant in the third quarter.
So what's going to happen? Are we ever going to get out of this hole with no credit and a too big of a surplus of homes?
I read an article on The Motley Fool yesterday about, "Predications From the Man Who Called the Housing Meltdown." I thought it was strange that I didn't remember doing an interview with The Motley Fool(nice to know I wasn't the only one who knew there was going to be a meltdown).
According to Robert Shiller, We've had a huge recovery in the housing market." Shiller also stated, "It's going up so solidly at the moment. But on the other hand it all looks risky, too. So I think we could see new lows in home prices."
So it looks like it's to soon to start getting excited about the increase. Shillr feels homes may stay around where they have been in the last few months and that they may go up for a while, then come down and stay level. Shiller also though prices would stay stagnant for the next five years.
Here is what Shiller has to say about a stagnant housing market:
"Well, or UMM market tells us the point in five years. It doesn't tell us what will happen on the way. Right now, home prices are rising pretty fast. So, taking that fact into account, a plausible scenario would be tat prices rise for some more months and drop back, but not a huge drop back, so that they end up about where they are (now) in five years.
That seems plausible to me. given historical experience that we went through the biggest bubble in home price history. Historically, home prices have not shown so much volatility and have not shown such a correlation with business cycle. So, looking at that, I suspect home prices won't do a lot over the next five years.
On the other hand, if you look at the housing market, the fact that we went through this enormous bubble suggests that people have gotten more speculative about housing. It didn't used to be considered a speculative market. It was home. It used to be widely believed that home prices were widely driven by construction costs, and those have been stable through time.
We've gotten to think of them as speculative, and that means we may make them behave speculatively. So I think that volatility of home prices may be higher than (it was) in the past. That's why I hink it's still worrisome that home prices could fall and set new lows. That is not my preferred scenario, but I could certainly see that happening.
I figured it was going to be a lot longer than five years like Robert Shiller is predicting, but I guess time will tell.
What do you think? Are things improving? Is the housing market finally making a re-bound?
Things are picking up in the housing market. My own neighborhood is on fire. Homes are going up left and right. For the past year my neighborhood was half full. Now it's almost over flowing.
Home price have been rising in recent months. Finally! After such a long plunge the National Association of Realtors and the S&P Case-Shiller national index report that prices have risen and Zillow.com says fewer Americans owe more than their property is worth.
According to the Census Department about one in every seven homes was vacant in the third quarter.
So what's going to happen? Are we ever going to get out of this hole with no credit and a too big of a surplus of homes?
I read an article on The Motley Fool yesterday about, "Predications From the Man Who Called the Housing Meltdown." I thought it was strange that I didn't remember doing an interview with The Motley Fool(nice to know I wasn't the only one who knew there was going to be a meltdown).
According to Robert Shiller, We've had a huge recovery in the housing market." Shiller also stated, "It's going up so solidly at the moment. But on the other hand it all looks risky, too. So I think we could see new lows in home prices."
So it looks like it's to soon to start getting excited about the increase. Shillr feels homes may stay around where they have been in the last few months and that they may go up for a while, then come down and stay level. Shiller also though prices would stay stagnant for the next five years.
Here is what Shiller has to say about a stagnant housing market:
"Well, or UMM market tells us the point in five years. It doesn't tell us what will happen on the way. Right now, home prices are rising pretty fast. So, taking that fact into account, a plausible scenario would be tat prices rise for some more months and drop back, but not a huge drop back, so that they end up about where they are (now) in five years.
That seems plausible to me. given historical experience that we went through the biggest bubble in home price history. Historically, home prices have not shown so much volatility and have not shown such a correlation with business cycle. So, looking at that, I suspect home prices won't do a lot over the next five years.
On the other hand, if you look at the housing market, the fact that we went through this enormous bubble suggests that people have gotten more speculative about housing. It didn't used to be considered a speculative market. It was home. It used to be widely believed that home prices were widely driven by construction costs, and those have been stable through time.
We've gotten to think of them as speculative, and that means we may make them behave speculatively. So I think that volatility of home prices may be higher than (it was) in the past. That's why I hink it's still worrisome that home prices could fall and set new lows. That is not my preferred scenario, but I could certainly see that happening.
I figured it was going to be a lot longer than five years like Robert Shiller is predicting, but I guess time will tell.
What do you think? Are things improving? Is the housing market finally making a re-bound?
Determine Where You Want to Go When It Comes to Debt. Step #12
If you are like me you probably want instant gratification. But instant gratification can be the reason why you are in debt to begin with.
When it comes to paying off debt it's OK to take a minute and think about what you are going to do. As we have discussed before you have to determine if you have a problem and start thinking about a budget. Just as those two things are important so is paying off debt in the right order.
STEP # 12 Something to think about
When you started your budget you should have been able to determine exactly what you owe each account. Write down the current balance for each debt and determine whether the loan is installment or revolving debt.
Revolving debt is any loan you have a credit limit on and can draw upon, such as your credit cards. When paying off revolving debt you increase your financial flexibility because you can always draw on the amount of the credit line you have freed up when you need it. Do you know what your interest rate is and whether they are fixed or variable? Credit cards are almost always variable since the rate can change at any time.
Installment loans usually have a fixed rate unless you have an adjustable rate loan, such as on your mortgage. Installment loans like mortgages and car loans provide you with a set schedule of fixed payments and a specific payoff date. Installment loans are generally for a set purpose and are paid off over a set time frame. You don't have a credit line to draw from.
Is the interest on any of your loans tax-deductible? Are there any prepayment penalties if you pay off the loan early? What is the minimum amount you are allowed to pay on each loan? So start making your list and checking it twice you've got something to think about.
When it comes to paying off debt it's OK to take a minute and think about what you are going to do. As we have discussed before you have to determine if you have a problem and start thinking about a budget. Just as those two things are important so is paying off debt in the right order.
STEP # 12 Something to think about
When you started your budget you should have been able to determine exactly what you owe each account. Write down the current balance for each debt and determine whether the loan is installment or revolving debt.
Revolving debt is any loan you have a credit limit on and can draw upon, such as your credit cards. When paying off revolving debt you increase your financial flexibility because you can always draw on the amount of the credit line you have freed up when you need it. Do you know what your interest rate is and whether they are fixed or variable? Credit cards are almost always variable since the rate can change at any time.
Installment loans usually have a fixed rate unless you have an adjustable rate loan, such as on your mortgage. Installment loans like mortgages and car loans provide you with a set schedule of fixed payments and a specific payoff date. Installment loans are generally for a set purpose and are paid off over a set time frame. You don't have a credit line to draw from.
Is the interest on any of your loans tax-deductible? Are there any prepayment penalties if you pay off the loan early? What is the minimum amount you are allowed to pay on each loan? So start making your list and checking it twice you've got something to think about.
Wednesday, November 11, 2009
Forget Uncle Sam: Donate to The Debt Free Advocate.
I read an interesting article at CNNMoney.com today of how you can do your part with paying down the country's giant debt load of $12 trillion and rising. But forget that, you can get more for your money by donating to The Debt Free Advocate.
In case you didn't know, if you are irked by the U.S. debt, you can make tax deductible contributions to pay it down (as if paying taxes wasn't enough).
So far for the year Americans have made $3.1 million in donations. Something I never knew existed is a little known law that was enacted in 1961 allowing Uncle Sam to accept tax-deductible contributions to pay down the country's debt.
Contributions are usually small, usually under $100. But according to the report there have been a few humdingers over the years.
The largest single gift ever made was in 1992 for $3.5 million.
Would you give?
CNNMoney.com took a poll on the streets of New York asking random passer by if they were aware of the program. One woman put it: "They use my tax dollars to do that and work it out." On man was a little more blunt. "Hell no. Hell no." Another figured he could "help the government out" with a few hundred bucks.
It will take more than a few $100 dollar contributions to pay off the national debt of $12 trillion--120 billion of them to be exact.
If anyone would like to contribute $3.5 million or any amount for that matter to support financial education: we'll gladly take it.
In case you didn't know, if you are irked by the U.S. debt, you can make tax deductible contributions to pay it down (as if paying taxes wasn't enough).
So far for the year Americans have made $3.1 million in donations. Something I never knew existed is a little known law that was enacted in 1961 allowing Uncle Sam to accept tax-deductible contributions to pay down the country's debt.
Contributions are usually small, usually under $100. But according to the report there have been a few humdingers over the years.
The largest single gift ever made was in 1992 for $3.5 million.
Would you give?
CNNMoney.com took a poll on the streets of New York asking random passer by if they were aware of the program. One woman put it: "They use my tax dollars to do that and work it out." On man was a little more blunt. "Hell no. Hell no." Another figured he could "help the government out" with a few hundred bucks.
It will take more than a few $100 dollar contributions to pay off the national debt of $12 trillion--120 billion of them to be exact.
If anyone would like to contribute $3.5 million or any amount for that matter to support financial education: we'll gladly take it.
Do You Think You Are Overpaid?
An article from Breakingviews.com entitled, "Americans Are Overpaid" reported that for the global economy to rebalance, the pay gap between Americans and the rest of the world must shrink.
According to the article U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed.
Does any body agree with this? Why shouldn't Americans make more money or anyone for that matter? But Americans take advantage of the higher productivity that makes our country rich: better education and infrastructure, abundant capital and more developed work ethic.
I think Americans need to get back to work so they can start getting out of debt. Without higher pay and working Americans we''ll never get this economy going again,
Are you willing to take a pay cut to get the global economy going again? Should American wages be higher? How high should they go? Read the entire article here and sound off.
According to the article U.S. workers are overpaid, relative to equally productive foreigners doing the same work. If the global economy is ever to get back into balance, that gap needs to be closed.
Does any body agree with this? Why shouldn't Americans make more money or anyone for that matter? But Americans take advantage of the higher productivity that makes our country rich: better education and infrastructure, abundant capital and more developed work ethic.
I think Americans need to get back to work so they can start getting out of debt. Without higher pay and working Americans we''ll never get this economy going again,
Are you willing to take a pay cut to get the global economy going again? Should American wages be higher? How high should they go? Read the entire article here and sound off.
Don't Kill Yourself On Black Friday.
With the start of the Holiday Shopping Season just two weeks away try not to kill anybody this year.
Last year an unruly crowd trampled a worker to death at a Wal-Mart store and the nation's retailers are preparing for yet another Black Friday. For those who don't know what Black Friday is, it's the day after Thanksgiving and is considered the start of the holiday shopping season. This year stores are planning new safety measures to help ensure the biggest shopping day of the year does not take another deadly turn.
Bargain hunting shoppers at a Wal-Mart in Valley Stream, N.Y. trampled a temporary worker who died soon afterward last year.
This year Wal-Mart has a new plan. The biggest change this year is that the majority of its stores will open Thanksgiving morning at 6 a.m. and stay open through Friday evening. In previous years the stores closed Thanksgiving evening and reopened early Friday morning. With the stores staying open for 24 hours Wal- Mart is hoping for steady flow of customers rather than massive crowds stampeding the front doors when the stores open.
Also, at Wal-Mart this year you will no longer have to make the mad dash towards the pile of flat screen TVs and get into a brawl with other shoppers to get one. This year shoppers will be able to line up in a first come first served basis for the must have items. Employees will be supervising the lines, giving the merchandise to the customers in the order they got in line until the item is out of stock.
For the first time the National Retail Federation has created a set of guidelines for crowd control at stores. The guidelines note that special markdowns and historically low discounts lead to bigger crowds.
Target is planning their own special markdowns in the form of $3 toasters and coffeemakers, steep sales on high definition televisions, and discounts up to 50% on clothes and toys.
This was leaked early today by Brad Olson, founder of Gottadeal.com, the Web site markets itself as one of the "official" Black Friday deal sites. Olson reported that he received a copy of the discount retailer's ad.
Most retailers keep things tight lipped about their Black Friday sales until the week before.
Olson's site tracks Black Friday deals for the fore mentioned Wal-Mart, Target Sears, and other chain stores. He has been doing this for the past six years and says Target's deals look pretty "aggressive" this year.
Black Friday begins the process of putting stores back in the black as it accounts for 50% of retailers profits for the two month period of November-December.
It is ironic that Black Friday puts retailers in black and consumers more in debt and in the red. Remember to buy only what you can afford, but by the sound of these deals you may be able to pull off an awesome holiday season rather inexpensively.
Last year an unruly crowd trampled a worker to death at a Wal-Mart store and the nation's retailers are preparing for yet another Black Friday. For those who don't know what Black Friday is, it's the day after Thanksgiving and is considered the start of the holiday shopping season. This year stores are planning new safety measures to help ensure the biggest shopping day of the year does not take another deadly turn.
Bargain hunting shoppers at a Wal-Mart in Valley Stream, N.Y. trampled a temporary worker who died soon afterward last year.
This year Wal-Mart has a new plan. The biggest change this year is that the majority of its stores will open Thanksgiving morning at 6 a.m. and stay open through Friday evening. In previous years the stores closed Thanksgiving evening and reopened early Friday morning. With the stores staying open for 24 hours Wal- Mart is hoping for steady flow of customers rather than massive crowds stampeding the front doors when the stores open.
Also, at Wal-Mart this year you will no longer have to make the mad dash towards the pile of flat screen TVs and get into a brawl with other shoppers to get one. This year shoppers will be able to line up in a first come first served basis for the must have items. Employees will be supervising the lines, giving the merchandise to the customers in the order they got in line until the item is out of stock.
For the first time the National Retail Federation has created a set of guidelines for crowd control at stores. The guidelines note that special markdowns and historically low discounts lead to bigger crowds.
Target is planning their own special markdowns in the form of $3 toasters and coffeemakers, steep sales on high definition televisions, and discounts up to 50% on clothes and toys.
This was leaked early today by Brad Olson, founder of Gottadeal.com, the Web site markets itself as one of the "official" Black Friday deal sites. Olson reported that he received a copy of the discount retailer's ad.
Most retailers keep things tight lipped about their Black Friday sales until the week before.
Olson's site tracks Black Friday deals for the fore mentioned Wal-Mart, Target Sears, and other chain stores. He has been doing this for the past six years and says Target's deals look pretty "aggressive" this year.
Black Friday begins the process of putting stores back in the black as it accounts for 50% of retailers profits for the two month period of November-December.
It is ironic that Black Friday puts retailers in black and consumers more in debt and in the red. Remember to buy only what you can afford, but by the sound of these deals you may be able to pull off an awesome holiday season rather inexpensively.
Financial Motivational Quote November 11, 2009
"Though no one can go back and make a brand new start, anyone can start from now and make a brand new ending"...Marcus Aurelius
We haven't posted a financial motivational quote in a while, but I read this today and liked it so much I thought I would post it.
You can't go back and uncharge all the debt you accumulated, but you can work towards paying it off and have fresh start.
We haven't posted a financial motivational quote in a while, but I read this today and liked it so much I thought I would post it.
You can't go back and uncharge all the debt you accumulated, but you can work towards paying it off and have fresh start.
Monday, November 9, 2009
What Does The Debt Free Advocate Do Best?
Tell us about what you like or don't like about The Debt Free Advocate. Would you like to see more current event topics about the economy, credit, debt, etc.? Would you like to see strictly posts about paying off your debt and how I managed to achieve financial freedom?
How about bringing back the daily financial motivational quotes to inspire you. Does the blog help answer your questions? Would you like us to bring back the question and answer format?
Tell what you would do to improve this site. Your financial freedom depends on it.
How about bringing back the daily financial motivational quotes to inspire you. Does the blog help answer your questions? Would you like us to bring back the question and answer format?
Tell what you would do to improve this site. Your financial freedom depends on it.
What Does Having a Budget Help Me Accomplish? Step #11
Developing a budget takes time. I have to constantly adjust mine to match what is going on in life in general. Things like having an emergency fund help offset unexpected events and help you from having to adjust your budget. Think of it like a diet. If you don't watch what you eat and excerise you don't accomplish your goal.
STEP #11
A budget is an ongoing process that you need to use on a daily basis to help control your spending habits and help you meet your debt free goals. You need to make a commitment to yourself. You have to decide you want to be debt free and begin saving money so you can start living financially independent. Planning a budget will help you decide what you need and what you want. Here is what a budget can help you accomplish:
- A budget helps you plan and prepare for big expenses in the future like a new car.
- A budget helps you put more money into your savings account every month.
- A budget starts to put you on your path to financial independence.
- A budget causes you to live on what you make and gets you and family moving in the same financial direction.
- A budegt helps you determine what you can eliminate that you might otherwise spend money on without planning.
If you haven't started that budget yet, what are you waiting for?
Do you use a budget to plan your spending? How does it work for you?
STEP #11
A budget is an ongoing process that you need to use on a daily basis to help control your spending habits and help you meet your debt free goals. You need to make a commitment to yourself. You have to decide you want to be debt free and begin saving money so you can start living financially independent. Planning a budget will help you decide what you need and what you want. Here is what a budget can help you accomplish:
- A budget helps you plan and prepare for big expenses in the future like a new car.
- A budget helps you put more money into your savings account every month.
- A budget starts to put you on your path to financial independence.
- A budget causes you to live on what you make and gets you and family moving in the same financial direction.
- A budegt helps you determine what you can eliminate that you might otherwise spend money on without planning.
If you haven't started that budget yet, what are you waiting for?
Do you use a budget to plan your spending? How does it work for you?
With Tightened Credit Will We Ever Get Out of The Recession?
Is credit from banks still tight? I have read several articles today, some saying that credit is loosening up and others saying it's still tight.
According to the Federal Reserves latest survey of loan officers, there is a sign that the credit crunch's grip may soon ease up. The loan officers I know are just miserable. Why? Because it is so hard to get a loan approved right now. Credit is still tight. Consumers showing so much as an NSF on there bank statements are having trouble getting loans. So is credit still tight?
The 15% of banks that responded to a survey said they imposed stricter standards on credit then they have over the last three month period. The survey also showed that some were reducing there standards, but very few actually are.
The banks that tightened there requirements did so for the same reasons they did during the last survey period back in July. The most common reasons were:
1. Reduced tolerance for risk.
2. An uncertain economic outlook.
3. Problems specific to industries.
Banks have been tightening there standards for loans over the past two years. Banks have constantly been tightening in these three areas of credit:
1. Higher credit scores.
2. Higher interest rate spreads.
3. More collateral and shorter maturities.
Bank lending has fallen sharply since they have been tightening credit along with a reduced demand for credit.
I am in a catch twenty-two over this as we always preach living a debt free lifestyle, but will we ever get out of the hole without it?
Whenever we've gotten out of a recession we have always had the availability credit to use as a shovel. This time it's different.
In one way we need a cleansing and on the other hand we will not get out of this without good news and to get people spending. If they aren't working and those who are can't get the loans they need, what will we do? Maybe we just need to meet in the middle somewhere.
Have you been turned down for a loan or credit card lately? What was the reason why?
According to the Federal Reserves latest survey of loan officers, there is a sign that the credit crunch's grip may soon ease up. The loan officers I know are just miserable. Why? Because it is so hard to get a loan approved right now. Credit is still tight. Consumers showing so much as an NSF on there bank statements are having trouble getting loans. So is credit still tight?
The 15% of banks that responded to a survey said they imposed stricter standards on credit then they have over the last three month period. The survey also showed that some were reducing there standards, but very few actually are.
The banks that tightened there requirements did so for the same reasons they did during the last survey period back in July. The most common reasons were:
1. Reduced tolerance for risk.
2. An uncertain economic outlook.
3. Problems specific to industries.
Banks have been tightening there standards for loans over the past two years. Banks have constantly been tightening in these three areas of credit:
1. Higher credit scores.
2. Higher interest rate spreads.
3. More collateral and shorter maturities.
Bank lending has fallen sharply since they have been tightening credit along with a reduced demand for credit.
I am in a catch twenty-two over this as we always preach living a debt free lifestyle, but will we ever get out of the hole without it?
Whenever we've gotten out of a recession we have always had the availability credit to use as a shovel. This time it's different.
In one way we need a cleansing and on the other hand we will not get out of this without good news and to get people spending. If they aren't working and those who are can't get the loans they need, what will we do? Maybe we just need to meet in the middle somewhere.
Have you been turned down for a loan or credit card lately? What was the reason why?
Sunday, November 8, 2009
What is a budget and Do I Need One to get Out of Debt? Step # 10
Having a budget definitely helped me get out of debt. I was able to figure how much I could spend each month, what I could pay towards my credit card debt, and what I could save. Without a budget you are setting yourself up for failure.
STEP # 10
A budget shows how much you spend your money on a daily, weekly, and monthly basis. It breaks down to what you can spend on any given day. So again, Do you need a budget? The answer to that question is a whole heatedly, YES! If you don't have a budget written down and having it all in your head doesn't count, you will jeopardize your chance to ever get out of debt.
The first thing you need to do to start a budget is determine how much you have to spend. The total limit you have to allocate can feel overwhelming. It's up to you to determine what you spend for groceries, pay the minimum or a little more on your credit cards, and what's left over for entertainment. Write down your monthly debt payments as well as your total expenses for utilities, etc. Then subtract that from your income. What is left over is what you have for savings and entertainment. This was the hardest point for me. It's kind of like we like chocolate, but broccoli is better for us. Paying off your debt and having fun on what's left over sucks, but it has to be done. Building your emergency fund should come before entertainment too. I am not saying you shouldn't have some fun, but having too much fun is probably how you got in debt to begin with.
If you need help in developing a budget for getting out of debt visit Quicken.com for some more tips and also check out their Simple Money Management Program.
STEP # 10
A budget shows how much you spend your money on a daily, weekly, and monthly basis. It breaks down to what you can spend on any given day. So again, Do you need a budget? The answer to that question is a whole heatedly, YES! If you don't have a budget written down and having it all in your head doesn't count, you will jeopardize your chance to ever get out of debt.
The first thing you need to do to start a budget is determine how much you have to spend. The total limit you have to allocate can feel overwhelming. It's up to you to determine what you spend for groceries, pay the minimum or a little more on your credit cards, and what's left over for entertainment. Write down your monthly debt payments as well as your total expenses for utilities, etc. Then subtract that from your income. What is left over is what you have for savings and entertainment. This was the hardest point for me. It's kind of like we like chocolate, but broccoli is better for us. Paying off your debt and having fun on what's left over sucks, but it has to be done. Building your emergency fund should come before entertainment too. I am not saying you shouldn't have some fun, but having too much fun is probably how you got in debt to begin with.
If you need help in developing a budget for getting out of debt visit Quicken.com for some more tips and also check out their Simple Money Management Program.
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