People are depleting their already ravaged 401K's and retirement accounts to just get buy or pay down their credit card debt. I want you to remember that your retirement savings is extremely important and taking it out to pay off debt can one day leave you with nothing. Social security is looking like it is going to run out 4 years earlier than expected and you probably won't be with a company long enough to have a pension. So, what you put in your in your 401K or IRA might be all you have one day.
There are ways to cut back and put the difference of what you save towards your credit cards. With some these of things you might say, "I am not doing without that", but one day you might have to say, "I have to do without my medication or food" for that matter. It is better to do without certain things temporarily now than later.
- Raise the deductible on you car insurance.
- If you have insurance through your credit cards, cancel it. Insurance through credit card companies is usually over priced.
- If you feel you need life insurance, which I do recommend, shop around with local insurance agents.
- Cancel any insurance against credit card theft or loss you may have purchased. This insurance is not necessary. You are only liable for the first $50 used on a card after you report it stolen or missing.
- Reduce the minutes on your cell phone plan and try not to us the phone as much. If you consistently use more minutes than your plan allows, consider changing your plan with more minutes to avoid high charges for out of plan minutes.
- Cancel your land line and use your cell as your main phone.
- Block texting on your cell phone. Texting fees can really add up.
- Cancel you long distance service. Get a calling card.
- Turn off lights when not in the room.
- Lower the heat during the day when you are away at work and at night when you are asleep.
- Turn your thermostat down just one or two degrees when you are home.
- Turn down the thermostat on your water heater by one or two degrees.
- Do laundry with cold water instead of hot.
- Open a window instead of turning on the air conditioner.
- Cancel your cable service or reduce the number of premium channels you pay for.
- Cancel your Internet account and sign up for a free service or a company that pays you to surf or go to the library when you need to go online.
- Use a free email service like Gmail or Yahoo.
- Turn on just the light next to you instead of turning on all the lights in a room. Be sure to turn it off when you leave the room.
- Turn off computers when you are not using them.
- Turn off the water while you are brushing your teeth.
Doing some these things really sucks, but it may be necessary. At on time I had $60,000 in credit card debt. I was never late on a payment and paid back the entire amount. These were some of the very things I did to get the debt paid off. I can't imagine going back to dial up for Internet use, but if I had to do it again to preserve my credit and my retirement I would definitely do it again.
Have you paid off credit card debt by cutting back? Let us hear from you.
Should I Take Out A 401K Loan To Pay Off My Credit Cards?
Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?
Should I Stop Contributing to My 401K To Pay Off My Credit Cards?
Reward Cards May Help You Save.
Beacause Marriage Is Hard Enough Without Debt
Welcome To Financial Elite!
Follow our 200K journey to get out of debt! We share our best money tips to get out of debt and build wealth.
Sunday, May 31, 2009
Bank of America's Capital Plan Moving Ahead
Bank of America continued to move ahead on its plan to strengthen and diversity its capital by offering to exchange up to 200 million shares of common stock with nine series of outstanding preferred stock.
If successful the tender offer would bring the company closer to its goal of raising $33.9 billion in Tier 1 common equity to meet the requirement of the government's stress test. So far Bank of America has raised nearly $26 billion in capital, of 76% for the total capital buffer set by the Federal Reserve.
"We're pleased with the progress we've made to date and the speed in which we've been able to raise additional capital," said CFO Joe Price. "The strong demand that we are seeing from investors validates our belief that we are building a tremendous franchise with the ability to generate strong earnings and revenue."
Bank of America has raised this capital by:
1. Adding more than $13.5 billion through the sale of common stock since May 8th.
2. Selling a portion for the company's shares held in China Construction Bank (CCB).
3. Converting $5.9 billion in preferred stock held by some private institutional shareholders into common stock.
In addition, to these actions, Bank of America plans to sell non-strategic assets such as First Republic Bank and Columbia Management Group and to establish joint ventures. These actions would support the company in two important ways- adding capital from the sale of the assets and reducing the need for additional capital to support the balance sheet.
Bank of American also passed another important milestone on Thursday when it issued $2.5 billion in 10 year notes without a US Government guarantee, marking the second time in the last few weeks that the company has accessed the debt markets.
"Our ability to access the debt markets on our own is an important step to qualify for repaying the government's investment in our company, said Treasurer Mark Linsz " The proceeds from the debt offerings will further enhance our liquidity, which is already one of the strongest in the industry."
If successful the tender offer would bring the company closer to its goal of raising $33.9 billion in Tier 1 common equity to meet the requirement of the government's stress test. So far Bank of America has raised nearly $26 billion in capital, of 76% for the total capital buffer set by the Federal Reserve.
"We're pleased with the progress we've made to date and the speed in which we've been able to raise additional capital," said CFO Joe Price. "The strong demand that we are seeing from investors validates our belief that we are building a tremendous franchise with the ability to generate strong earnings and revenue."
Bank of America has raised this capital by:
1. Adding more than $13.5 billion through the sale of common stock since May 8th.
2. Selling a portion for the company's shares held in China Construction Bank (CCB).
3. Converting $5.9 billion in preferred stock held by some private institutional shareholders into common stock.
In addition, to these actions, Bank of America plans to sell non-strategic assets such as First Republic Bank and Columbia Management Group and to establish joint ventures. These actions would support the company in two important ways- adding capital from the sale of the assets and reducing the need for additional capital to support the balance sheet.
Bank of American also passed another important milestone on Thursday when it issued $2.5 billion in 10 year notes without a US Government guarantee, marking the second time in the last few weeks that the company has accessed the debt markets.
"Our ability to access the debt markets on our own is an important step to qualify for repaying the government's investment in our company, said Treasurer Mark Linsz " The proceeds from the debt offerings will further enhance our liquidity, which is already one of the strongest in the industry."
If I Don't Take Out A 401K Loan To Pay Off My Debt Where Else Can I Get Money?
The question of using your 401K to pay off your credit card debt is related to many topics we have discussed before including: keeping your house out of foreclosure to paying your credit cards on time. I have suggested actions such as renting rooms out or getting a second job. Having debt can be very stressful, but if you want to get out from under your mountain of debt, you may have to do things you don't want to do. You need to consider what is more stressful? Making those payments forever or biting the bullet and cut back for a while. Here are some additional ideas for finding extra money to pay towards your credit card debt. They may make small dents in your credit card debt, but they will really add up over time.
- Sell any investments you have
- Sell other assets, a boat, comic book collection, extra car, jewelry, etc. Anything that you can trade for cash.
- If you have child support payments see if you can get your obligations reduced.
- Use your tax refund or alimony payment.
- Transfer your credit card balances to a card with a low interest rate.
- If you have a card with an annual fee see if the credit card company will be willing to waive it.
- Borrower money from family or friends. But remember you need to pay them back too. You can really ruin your relationship with them over something like this.
- Get rid of your overdraft protection on your bank accounts. This will help you from getting into more debt.
- Shred any cash advance checks you have received from your credit card company. If you haven't paid the balance off when the interest adjusts, it will make things worse.
- Don't use ATM's at banks other than your own. ATM fees can really add up.
- Put away your credit cards so you are not tempted to charge on them.
- Increase the number of dependents you claim on your W-2 at work. But be careful. You can end up owing money come tax time if you listed too many dependents.
- Start a budget and watch where your money is going. You may find other ways to cut back.
- See if you qualify for assistance from a local food pantry or other charities.
- Apply for public assistance if you are out of work or disabled. This money will not be enough to pay off your debt, but it may give extra money to put food on the table.
- Some rewards cards offer cash back incentives. See if you have any cash due and put towards your credit card debt rather than spend it.
- Stop taking cash advances on your credit cards. The interest and fees will make things worse.
It's not that hard to be creative. Put your mind to it. There is always a way to cut back somewhere.
Have you paid your debt off by finding ways to cut back? Let us hear from you. Share your tips and let's give some folks some ideas.
Should I Take Out A 401K Loan To Pay Off My Credit Cards?
Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?
Should I Stop Contributing to My 401K To Pay Off My Credit Cards?
Reward Cards May Help You Save.
- Sell any investments you have
- Sell other assets, a boat, comic book collection, extra car, jewelry, etc. Anything that you can trade for cash.
- If you have child support payments see if you can get your obligations reduced.
- Use your tax refund or alimony payment.
- Transfer your credit card balances to a card with a low interest rate.
- If you have a card with an annual fee see if the credit card company will be willing to waive it.
- Borrower money from family or friends. But remember you need to pay them back too. You can really ruin your relationship with them over something like this.
- Get rid of your overdraft protection on your bank accounts. This will help you from getting into more debt.
- Shred any cash advance checks you have received from your credit card company. If you haven't paid the balance off when the interest adjusts, it will make things worse.
- Don't use ATM's at banks other than your own. ATM fees can really add up.
- Put away your credit cards so you are not tempted to charge on them.
- Increase the number of dependents you claim on your W-2 at work. But be careful. You can end up owing money come tax time if you listed too many dependents.
- Start a budget and watch where your money is going. You may find other ways to cut back.
- See if you qualify for assistance from a local food pantry or other charities.
- Apply for public assistance if you are out of work or disabled. This money will not be enough to pay off your debt, but it may give extra money to put food on the table.
- Some rewards cards offer cash back incentives. See if you have any cash due and put towards your credit card debt rather than spend it.
- Stop taking cash advances on your credit cards. The interest and fees will make things worse.
It's not that hard to be creative. Put your mind to it. There is always a way to cut back somewhere.
Have you paid your debt off by finding ways to cut back? Let us hear from you. Share your tips and let's give some folks some ideas.
Should I Take Out A 401K Loan To Pay Off My Credit Cards?
Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?
Should I Stop Contributing to My 401K To Pay Off My Credit Cards?
Reward Cards May Help You Save.
I Have A New Degree, but I Can't Find A Job. I do I Pay My Student Loans?
If you have federal student loans you can apply for an unemployment deferment. If you are currently working less than 30 hours a week, you will not have to start repayment yet. But take note you have to apply for the deferment. It's not automatic and if you don't have the deferment and you don't make your payments it will reflect on your credit report as late. On feature of this deferment with subsidized federal loans is interest does not accrue. Your financial aid office should be able to assist you with this and maybe discuss other options for federal loan repayments. You can go to finaid.org as well.
Financial Motivational Quote May 31, 2009
"Success is only temporary. When all else is said and done, the only thing you'll have left is your character."- Vince Gill
Saturday, May 30, 2009
Financial Motivational Quote May 30, 2009
"No one can possibly achieve any real and lasting success or "get rich" in business by being a conformist."- J. Paul Getty
Friday, May 29, 2009
Can I Consolidate My Private Student loans?
I really don't suggest getting private loans with so many other options. One reason is you will be at the mercy of your lender and they do do not have to consolidate your loan or give any kind of deferments. Also, the current economy has eliminated the private student debt consolidation market for now.
One piece of good news is that the $700 billion bailout bill restored a college tax break that had previously expired. You can deduct up to $4,000 in college tuition and fees if you make less than $65,000 for single filers. A $2,000 deduction if your income is between $65,000 and $80,000 or 4,000 for those making $130,000 and who are married and filing jointly. You'll get the $2,000 deduction for incomes between $130,000 and $160,000. These deductions can be filed whether you are itemizing or not.
One piece of good news is that the $700 billion bailout bill restored a college tax break that had previously expired. You can deduct up to $4,000 in college tuition and fees if you make less than $65,000 for single filers. A $2,000 deduction if your income is between $65,000 and $80,000 or 4,000 for those making $130,000 and who are married and filing jointly. You'll get the $2,000 deduction for incomes between $130,000 and $160,000. These deductions can be filed whether you are itemizing or not.
Thursday, May 28, 2009
Bank of America Is On Twitter Too.
Financial Elite isn't the only one to jump on the Twitter band wagon. Since January, Bank of America has been providing a new way for customers to contact the bank with requests for help or information--via Twitter, the free social networking group.
When customers with service problems contact BofA_help on Twitter, Bank of America asks "Anything I can do to help?" and then responds with messages of no more than 140characters at a time, which is the maximum length allowed by Twitter.
The bank's official voice on Twitter, David Knapp, also leads the Bank of America Customer Experience team as part of an overall pilot program on communication methods designed for social groups. His goal is to respond to customers who turn to Twitter for help.
"Most customer service conversations are one to one," he said. "Twitter expands the interaction to be one to many. So customers and their "followers," the Twitter term for friends, see that this is a legitimate way to connect with Bank of America.
"As a company," he continued, "our goal is to continuously make banking easier, faster and more convenient for consumers, so Twitter enables us to do that and demonstrate our commitment to help customers anywhere they choose to bank."
In the beginning, Knapp would find customers on Twitter primarily by searching for twitter messages that mentioned Bank of America by name.
Now, users are beginning to seek out Knapp, either as his followers or because they follow someone who asked Knapp for help. Customers typically use Twitter to escalate requests after first contacting customer service through traditional methods,but some customers are turning to Twitter first.
Because Twitter is for public communications, Knapp always asks customers to contact him by direct message or, Twitter-ese, "DM" with specifics of their concern. That way, customers can provide sensitive information, such as account numbers, privately and safely.
More than 2,000 people now follow Knapp directly, and their posts about BofA_help have reached over 143,000 followers. The Bank's presence on Twitter has received media publicity including from Bank Technology News, which rated Bank of America as "the best bank on Twitter. Visit BofA_help to see the current postings.
When customers with service problems contact BofA_help on Twitter, Bank of America asks "Anything I can do to help?" and then responds with messages of no more than 140characters at a time, which is the maximum length allowed by Twitter.
The bank's official voice on Twitter, David Knapp, also leads the Bank of America Customer Experience team as part of an overall pilot program on communication methods designed for social groups. His goal is to respond to customers who turn to Twitter for help.
"Most customer service conversations are one to one," he said. "Twitter expands the interaction to be one to many. So customers and their "followers," the Twitter term for friends, see that this is a legitimate way to connect with Bank of America.
"As a company," he continued, "our goal is to continuously make banking easier, faster and more convenient for consumers, so Twitter enables us to do that and demonstrate our commitment to help customers anywhere they choose to bank."
In the beginning, Knapp would find customers on Twitter primarily by searching for twitter messages that mentioned Bank of America by name.
Now, users are beginning to seek out Knapp, either as his followers or because they follow someone who asked Knapp for help. Customers typically use Twitter to escalate requests after first contacting customer service through traditional methods,but some customers are turning to Twitter first.
Because Twitter is for public communications, Knapp always asks customers to contact him by direct message or, Twitter-ese, "DM" with specifics of their concern. That way, customers can provide sensitive information, such as account numbers, privately and safely.
More than 2,000 people now follow Knapp directly, and their posts about BofA_help have reached over 143,000 followers. The Bank's presence on Twitter has received media publicity including from Bank Technology News, which rated Bank of America as "the best bank on Twitter. Visit BofA_help to see the current postings.
Should I Consolidate My Student Loan After I Graduate?
Consolidating your student loans can be a good idea. The best part about it is you can put all your student loan payments into a one payment a month. This will also benefit your FICO credit score. It will also be easier to manage one payment.
The fixed consolidation rate for a Stafford loan is 6.8% as of July 1, 2006.
The fixed consolidation rate for a Stafford loan is 6.8% as of July 1, 2006.
Bank of America Raises $26 Billion In Capital
Bank of America said yesterday it has raised almost $26 billion in its capital plan since the stress test results were announced and is well on its way to reaching the 33.9 million indicated Supervisory Capital Asset Program (SCAP) buffer set by the Federal Reserve.
The company announced last week that it raised $13.5 billion through issuing 1.25 billion shares in an at the market common stock offering. It has also sold part of its holdings in China Construction Bank, generating a capital gain. Contributing to the capital plan, these initiatives also benefit Tier 1 common capital by $1.8 billion by reducing the deferred tax asset deduction.
Bank of America has entered into agreements with certain holders of (non-government) perpetual preferred shares to exchange their holdings are approximately $5.9 billion of preferred stock into approximately 4.36 million shares of common stock. This results in a total benefit to Tier 1 common capital of 5.9 billion.
Combined, these initiatives have raised almost $26 billion, or 76 percent of the total, toward the SCAP buffer of 33.9 billion.
Subject to market conditions, the company could issue up to additional 564 million common shares through the exchange on (non-government) perpetual preferred shares for common stock.
In addition, Bank of America has previously said that it plans to sell non strategic assets such as First Republic Bank and Columbia Management Group and to establish joint ventures. In addition to adding capital, these sales would also reduce the need for capital to support the balance sheet.
"We are quite pleased with the capital raising effort and the progress toward completing the asset sales and establishment of the joint ventures," said Joe Price, Bank of America chief financial officer."The company hopes to use the majority of the proceeds from these in initiatives to reduce reliance on government support for the company.
The company announced last week that it raised $13.5 billion through issuing 1.25 billion shares in an at the market common stock offering. It has also sold part of its holdings in China Construction Bank, generating a capital gain. Contributing to the capital plan, these initiatives also benefit Tier 1 common capital by $1.8 billion by reducing the deferred tax asset deduction.
Bank of America has entered into agreements with certain holders of (non-government) perpetual preferred shares to exchange their holdings are approximately $5.9 billion of preferred stock into approximately 4.36 million shares of common stock. This results in a total benefit to Tier 1 common capital of 5.9 billion.
Combined, these initiatives have raised almost $26 billion, or 76 percent of the total, toward the SCAP buffer of 33.9 billion.
Subject to market conditions, the company could issue up to additional 564 million common shares through the exchange on (non-government) perpetual preferred shares for common stock.
In addition, Bank of America has previously said that it plans to sell non strategic assets such as First Republic Bank and Columbia Management Group and to establish joint ventures. In addition to adding capital, these sales would also reduce the need for capital to support the balance sheet.
"We are quite pleased with the capital raising effort and the progress toward completing the asset sales and establishment of the joint ventures," said Joe Price, Bank of America chief financial officer."The company hopes to use the majority of the proceeds from these in initiatives to reduce reliance on government support for the company.
Wednesday, May 27, 2009
Financial Motivational Quote May 27, 2009
"A great pleasure in life is doing what people say you cannot do."- Walter Gagehot
What Social Networking Service Do You Prefer...Twitter, Facebook, MySpace?
Financial Elite is now on Twitter. Follow us there too. Let us know what social networking service works best for you: Twitter, MySpace, or Facebook.
Tuesday, May 26, 2009
Financial Motivational Quote May 26, 2009
Good is not good where better is expected." Thomas Fuller
Obama Makes The Credit Card Smackdown A Reality
Last Tuesday the Senate voted 90-5 to approve the bill that makes it tougher for credit card companies to raise fees and interest rates starting in the first quarter next year.
"To have the industry reaching and be as abusive to consumers, it needed to stop and it needed to change," said Senator Chris Dodd, a bill sponsor.
The bill targets credit card rate hikes and excessive fees."The President has created a strong impetus for immediate action, "said Travis Plunkett with the Consumer Federation of America.
President Obama signed the bill on Friday making it tougher for credit card companies to raise fees and interest rates.
The new law was a culmination of several years of work by consumers groups and Democrats to rein in what they say are abusive practices that prey on consumers. During the bill signing ceremony President Obama praised the new law.
Starting in February 2010 the bill will put a stop to:
- Charging consumers to pay by phone
- Sudden surges in interest rates
The bill also makes changes to:
- Applying payments made over the minimum due to balances with the highest interest rates first.
- Information in tiny print must be made clearer.
- Let consumers know how long it would take to payoff a balance if they only pay the minimum payment.
Credit card companies have been raising fees and interest rates. From November 2008 to February 2009, rates increased from an average of 12.02% to 13.08%. Because of this people have not been able to make their payments on their credit cards and are walking away from the debt.
President Obama stated the bill is not designed to protect those who are financially irresponsible, and that credit card companies do deserve to make a profit.
"We do not excuse those, and do not condone folks who have acted irresponsibly," he said.
Although, the bill is now law it doesn't go into effect until February 2010. Watch out for credit card companies trying to raise rates and charge as many fees as they can before the bill goes into effective.
President Obama Signs New Credit Card Bill Into Law
Everyone Has a Credit Card Horror Story
"To have the industry reaching and be as abusive to consumers, it needed to stop and it needed to change," said Senator Chris Dodd, a bill sponsor.
The bill targets credit card rate hikes and excessive fees."The President has created a strong impetus for immediate action, "said Travis Plunkett with the Consumer Federation of America.
President Obama signed the bill on Friday making it tougher for credit card companies to raise fees and interest rates.
The new law was a culmination of several years of work by consumers groups and Democrats to rein in what they say are abusive practices that prey on consumers. During the bill signing ceremony President Obama praised the new law.
Starting in February 2010 the bill will put a stop to:
- Charging consumers to pay by phone
- Sudden surges in interest rates
The bill also makes changes to:
- Applying payments made over the minimum due to balances with the highest interest rates first.
- Information in tiny print must be made clearer.
- Let consumers know how long it would take to payoff a balance if they only pay the minimum payment.
Credit card companies have been raising fees and interest rates. From November 2008 to February 2009, rates increased from an average of 12.02% to 13.08%. Because of this people have not been able to make their payments on their credit cards and are walking away from the debt.
President Obama stated the bill is not designed to protect those who are financially irresponsible, and that credit card companies do deserve to make a profit.
"We do not excuse those, and do not condone folks who have acted irresponsibly," he said.
Although, the bill is now law it doesn't go into effect until February 2010. Watch out for credit card companies trying to raise rates and charge as many fees as they can before the bill goes into effective.
President Obama Signs New Credit Card Bill Into Law
Everyone Has a Credit Card Horror Story
Monday, May 25, 2009
I Have Been Laid Off. How Do I Still Help My Children Go To College?
As we have discussed before do not put your self in a financial predicament over your children's college tuition. Especially, since you have been laid off.
The first thing you need to do is contact the financial aid office at your child school and let them know right away about your layoff. You may now qualify for student aid or student loans that you couldn't before now that your financial status has changed. Be aware there may not be money available at many schools, especially public universities. Many colleges are feeling the economic pinch just like everyone else is. But you never know unless you ask and there is a good chance you can still get extra help. Also, be sure your child has maxed out all available funds from Stafford loans. Stafford loans have a maximum interest of 6.8% that is fixed and is a very affordable way to pay for a college tuition.
Don't forget about the PLUS loan either. If you are still current on all your debts you can defer payment until your child graduate from college. As the economy continues to recover you should expect to working again some time soon. You and your child can then work on repaying the PLUS loan. Please, please remember to borrow what you can actually afford. You can go to the College Boards Web site and use the online calculator to see what the PLUS loan you take out will cost to repay. Do NOT take out this loan if you can not make them payments even after you go back to work.
I know you want your children to be successful, but please be honest with your children if you cannot afford to help them pay for college. This talk can be heart breaking for both of you, but if you can't do it...you can't do it. Do not put yourself in more financial hardship. An alternative may be for your child to go to a less expensive school or wait until the next semester and work for a while to help with the tuition costs.
Again I know this can be a very difficult topic to talk about with your child, but you have to do what you have do in these economic times. Taking out any debt of any kind student loan or not is never smart if it will cause you financial hardship. Do not take on more than you can handle.
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
The first thing you need to do is contact the financial aid office at your child school and let them know right away about your layoff. You may now qualify for student aid or student loans that you couldn't before now that your financial status has changed. Be aware there may not be money available at many schools, especially public universities. Many colleges are feeling the economic pinch just like everyone else is. But you never know unless you ask and there is a good chance you can still get extra help. Also, be sure your child has maxed out all available funds from Stafford loans. Stafford loans have a maximum interest of 6.8% that is fixed and is a very affordable way to pay for a college tuition.
Don't forget about the PLUS loan either. If you are still current on all your debts you can defer payment until your child graduate from college. As the economy continues to recover you should expect to working again some time soon. You and your child can then work on repaying the PLUS loan. Please, please remember to borrow what you can actually afford. You can go to the College Boards Web site and use the online calculator to see what the PLUS loan you take out will cost to repay. Do NOT take out this loan if you can not make them payments even after you go back to work.
I know you want your children to be successful, but please be honest with your children if you cannot afford to help them pay for college. This talk can be heart breaking for both of you, but if you can't do it...you can't do it. Do not put yourself in more financial hardship. An alternative may be for your child to go to a less expensive school or wait until the next semester and work for a while to help with the tuition costs.
Again I know this can be a very difficult topic to talk about with your child, but you have to do what you have do in these economic times. Taking out any debt of any kind student loan or not is never smart if it will cause you financial hardship. Do not take on more than you can handle.
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
Sunday, May 24, 2009
Financial Motivational Quote May 24, 2009
"The man who fill use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed."- Henry Ford
President Obama Signs New Credit Card Bill Into Law
President Obama signed the U.S. Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 on Friday.
"Our business is changing," said Bank of America's Global Card Services President Ric Struthers,"It is changing partly because of the new law, but more importantly because customers are changing. They want rates and fess to be fair and to remain consistent. They want to be able to read and understand the terms and conditions of their credit card agreements. They want to be informed and know what it costs them to use a credit card. We completely agree."
Similar to regulations passed by the Federal reserve late last year, he new legislation restricts credit issuers; ability to price customers to reflect their individual risk, changes the way payments are applied to customer accounts and requires new disclosures. The majority of the provisions in the law became effective next February.
Some key provisions in the new law include:
- Prohibiting over limit fees unless the customer opts in to being allowed to go over the limit.
- Allocating payment amounts above the required minimum only to the highest rate balances first.
- Prohibiting rate increases on existing balances except in limited circumstances, including when cardholder payment is at least 60 days past due.
- Requiring statement disclosures that indicate how long it would take to pay off a balance if the customer only pays the minimum each month.
- Ensuring young people under 21 have a cosigner or are able to demonstrate financial ability to repay the loan before they are issued a credit card account.
"While there will be a significant impact to the card business," said Struthers, "ours goals remain the same: to responsibly lend to the broadcast number of customers possible, while protecting the safety and soundness of our company, and providing an appropriate return to our shareholders."
In the fourth quarter last year, Bank of America extended $8 billion of unsecured consumer credit and loan another $6 billion in the first quarter of this year.
"The payments business, including credit cards , is here to stay," Struthers said.
in 2008, U.S. cardholders charged more than $2 trillion in total volume, 14 percent of the U.S. gross domestic product.
"The credit card is embedded in our financial system," he concluded.
Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?
I Haven't Paid My Credit Card Bills In Years. Why Am I Being Told I Still Owe Money?
Can Credit Card Companies And Collectors Harass Me at Work?
Everyone Has a Credit Card Horror Story
"Our business is changing," said Bank of America's Global Card Services President Ric Struthers,"It is changing partly because of the new law, but more importantly because customers are changing. They want rates and fess to be fair and to remain consistent. They want to be able to read and understand the terms and conditions of their credit card agreements. They want to be informed and know what it costs them to use a credit card. We completely agree."
Similar to regulations passed by the Federal reserve late last year, he new legislation restricts credit issuers; ability to price customers to reflect their individual risk, changes the way payments are applied to customer accounts and requires new disclosures. The majority of the provisions in the law became effective next February.
Some key provisions in the new law include:
- Prohibiting over limit fees unless the customer opts in to being allowed to go over the limit.
- Allocating payment amounts above the required minimum only to the highest rate balances first.
- Prohibiting rate increases on existing balances except in limited circumstances, including when cardholder payment is at least 60 days past due.
- Requiring statement disclosures that indicate how long it would take to pay off a balance if the customer only pays the minimum each month.
- Ensuring young people under 21 have a cosigner or are able to demonstrate financial ability to repay the loan before they are issued a credit card account.
"While there will be a significant impact to the card business," said Struthers, "ours goals remain the same: to responsibly lend to the broadcast number of customers possible, while protecting the safety and soundness of our company, and providing an appropriate return to our shareholders."
In the fourth quarter last year, Bank of America extended $8 billion of unsecured consumer credit and loan another $6 billion in the first quarter of this year.
"The payments business, including credit cards , is here to stay," Struthers said.
in 2008, U.S. cardholders charged more than $2 trillion in total volume, 14 percent of the U.S. gross domestic product.
"The credit card is embedded in our financial system," he concluded.
Should I Stop Contributing To My 401K If I Want To Pay Off My Credit Cards?
I Haven't Paid My Credit Card Bills In Years. Why Am I Being Told I Still Owe Money?
Can Credit Card Companies And Collectors Harass Me at Work?
Everyone Has a Credit Card Horror Story
Saturday, May 23, 2009
Unemployment Rate Down In 21 States
Finally some good economic news as the road to recovery continues. The economic picture has improved in April for 21 states.
Source: CNN Money
NEW YORK (CNN Money.com) -- The employment situation in the states showed sign of stabilizing last month.
The unemployment rate declined in 21 states in April, compared with the month before, while 11 states had no rate change, according to federal data released Friday.
The work situation, however, deteriorated in 18 states and Washington, D.c., last month, according to the Bureau of labor Statistics.
A month earlier, unemployment rates rose in 46 states.
In April, Michigan once again led the nation with a jobless rate of 12.9%, up from 12.65 in March. Oregon, South Carolina, Rhode Island, California, North Carolina, Nevada and Ohio all rates exceeding 10%.
Read more: http://money.cnn.com/2009/05/22/news/economy/State_unemployment/index.htm?section=money_news_economy
We should expect see more of a decrees as time goes on.
Source: CNN Money
NEW YORK (CNN Money.com) -- The employment situation in the states showed sign of stabilizing last month.
The unemployment rate declined in 21 states in April, compared with the month before, while 11 states had no rate change, according to federal data released Friday.
The work situation, however, deteriorated in 18 states and Washington, D.c., last month, according to the Bureau of labor Statistics.
A month earlier, unemployment rates rose in 46 states.
In April, Michigan once again led the nation with a jobless rate of 12.9%, up from 12.65 in March. Oregon, South Carolina, Rhode Island, California, North Carolina, Nevada and Ohio all rates exceeding 10%.
Read more: http://money.cnn.com/2009/05/22/news/economy/State_unemployment/index.htm?section=money_news_economy
We should expect see more of a decrees as time goes on.
Friday, May 22, 2009
Does Any Know What The Secret Billionaire Meeting Was About?
Several Billionaires including: Bill Gates, Warren Buffet, and Oprah Winfrey got together for a secret meeting. Does anyone know why?
Here some info on it from ABC.
Here some info on it from ABC.
Be Careful When Transferring Your Balance To A Lower Interest Rate Credit Card
I love reading articles from Gerri Willis, CNN personal finance editor and author of the book "Home Rich: Increasing the Value of the Biggest Investment of Your Life". Mainly because she has the same view on personal finance that we do.
We've discussed many time at being aware of the possible cost, higher interest rates, and excessive fees when you apply for a balance transfer with a new credit card.
Most people now the term APR (annual percentage rate) but the number of credit card holders should really pay attention to "effective APR."
"An effective APR represents your total cost of credit. Now, keep in mind, this may be more than just an interest rate. If you are paying an annual fee, if you incurred a balance transfer when transferring the balance to that card...those are costs that will add to the interest rate that you're effectively paying, effectively raising the cost that you pay on that balance." says Greg McBride, senior financial analyst at bankrate.com.
Gerri suggests to beware of:
- Introductory rates
- Payment schedules
- Cash advance fees
- Late Fees
- Default rates
Be sure you crunch the numbers when determining the best credit card for you.You can manage these expenses very easily by following these simple rules: make your payments on time, keep an eye on your rate schedule and avoid cash advances whenever possible.
We've discussed many time at being aware of the possible cost, higher interest rates, and excessive fees when you apply for a balance transfer with a new credit card.
Most people now the term APR (annual percentage rate) but the number of credit card holders should really pay attention to "effective APR."
"An effective APR represents your total cost of credit. Now, keep in mind, this may be more than just an interest rate. If you are paying an annual fee, if you incurred a balance transfer when transferring the balance to that card...those are costs that will add to the interest rate that you're effectively paying, effectively raising the cost that you pay on that balance." says Greg McBride, senior financial analyst at bankrate.com.
Gerri suggests to beware of:
- Introductory rates
- Payment schedules
- Cash advance fees
- Late Fees
- Default rates
Be sure you crunch the numbers when determining the best credit card for you.You can manage these expenses very easily by following these simple rules: make your payments on time, keep an eye on your rate schedule and avoid cash advances whenever possible.
Financial Motivational Quote May 22, 2009
"History has demonstrated that the most notable winners usually encountered heart-breaking obstacles before they triumphed. They won because they refused to become discouraged by their defeats."- B.C. Forbes
Thursday, May 21, 2009
I'd Like To Get A PLUS Loan For My Child, But I Don't Think I Can Afford The Payment.
As we have discussed before, the new emergency legislation that was passed will allow you to postpone making payments until your child graduates from college. I also want to remind you that it is not entirely your responsibility. I know you want to help your child get the best education, but they can contribute too.
You need to sit down with your child and have a serious talk with them about what happens when the payments become due. One of the reasons you are helping your child to go school is to help them have a better paying career. Right? Discuss with them what you expect them to contribute to the eventual repayment of the PLUS Loan. It is best to have this talk before school starts. This may help them give the extra push for working during the summer to help pay for the PLUS Loan. This may also teach them the difference between "need" and "want" and teach them that things like school are more important than Spring Breaks in Cabo.
You need to sit down with your child and have a serious talk with them about what happens when the payments become due. One of the reasons you are helping your child to go school is to help them have a better paying career. Right? Discuss with them what you expect them to contribute to the eventual repayment of the PLUS Loan. It is best to have this talk before school starts. This may help them give the extra push for working during the summer to help pay for the PLUS Loan. This may also teach them the difference between "need" and "want" and teach them that things like school are more important than Spring Breaks in Cabo.
Wednesday, May 20, 2009
More Help Coming To The Housing Market
We have been keeping an eye on the constantly evolving programs out there to assist the housing market and homeowners. There is a new spin to the $8,000 tax credit for new home buyers on the way.
Now is the time to buy a home. Prices are at all time lows. Affordability is at a record high. And homes are looking for buyers.
As part of the Obama Administration stimulus package, a refundable first time homebuyer tax credit was created. The tax credit is intended to encourage people to jump make into the housing market and buy a home. Buyers would have to wait though until they file their tax returns to get the share of the $8,000. But change is coming.
The program would allow new homebuyers to receive their tax credit at the time of closing.
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," said Shaun Donovan, HUD secretary, in speech last Tuesday before the National Association of Realtors.
This is exciting news. We will keep you posted as this program is unveiled.
Now is the time to buy a home. Prices are at all time lows. Affordability is at a record high. And homes are looking for buyers.
As part of the Obama Administration stimulus package, a refundable first time homebuyer tax credit was created. The tax credit is intended to encourage people to jump make into the housing market and buy a home. Buyers would have to wait though until they file their tax returns to get the share of the $8,000. But change is coming.
The program would allow new homebuyers to receive their tax credit at the time of closing.
"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," said Shaun Donovan, HUD secretary, in speech last Tuesday before the National Association of Realtors.
This is exciting news. We will keep you posted as this program is unveiled.
Financial Motivational Quote May 20, 2009
"Keep these concepts in mind: You've failed many times, although you don't remember. You fell down the first time you tried to walk. You almost drowned the first time you tried to swim..Don't worry about failure. My suggestion to each of you: Worry about the chances you miss when you don't even try."- Sherman Finesilver
Tuesday, May 19, 2009
Bank Of America Finishes Its At The Market Stock Offering
As we have discussed before Bank of America has begun raising the required capital to meet the Stress Test for banks.
Bank of America late Tuesday concluded its previously announced sale of common stock.
The stock was sold through what is called an "At-the-Market" issuance program in which shares are sold over a period of time.
The company issued 1.25 billion shares of common stock since beginning the program on Friday, May 8 at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed." said Chief Financial Officer Joe Price. "This strengthens and diversifies our capital structure."
See Bank of America's related press release on Tuesday.
Bank of America late Tuesday concluded its previously announced sale of common stock.
The stock was sold through what is called an "At-the-Market" issuance program in which shares are sold over a period of time.
The company issued 1.25 billion shares of common stock since beginning the program on Friday, May 8 at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed." said Chief Financial Officer Joe Price. "This strengthens and diversifies our capital structure."
See Bank of America's related press release on Tuesday.
Financial Motivational Quote May 19, 2009
"Deliver me from all evildoers that talk nothing but sickness and failure. Grant me the companionship of men who think success and men who work for it. Loan me associates who cheerfully face the problems of a day and try hard to overcome them. Relieve me of all cynics and critics. Give me good health and strength to be the real service to the world, and I'll get all that's good for me, and will what's left to those who want it."- William Feather
Monday, May 18, 2009
Even If I Take Out A PLUS Loan I Can't Afford The Payment. What Do I Do?
Well, you don't have to pay back the PLUS Loan right away. At one time you had to start making payments within 60 days of receiving the money, but the emergency legislation, that we have discussed before, which was passed last year has allowed parents to not have to start making payments so soon. Now you can defer payment until your child graduates. Which means you don't have to start making payments for 4 years. This also can make the repaying of the PLUS loan a family effort. Legally parents have the responsibility of repaying the loan, but getting your children to help repay the loan will definitely reduce the financial burden.
Sunday, May 17, 2009
Homeowners Are Getting Mortgage Help And More Help Is On The Way.
Officials announced Thursday that under President Obama's foreclosure prevention program more than 55,000 homeowners received loan modification offers.
"If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future," said Treasury Secretary Geithner."These are critical steps in stemming the foreclosure crisis and stabilizing the housing market, both of which are critical to our economic recovery."
Administration officials has also announced they are expanding the program to help homeowners who are delinquent and do not qualify for a modification.
The Administration had previously announced details of other new options to help bring relief to responsible homeowners under the Making Home Affordable program, including an effort to achieve greater affordability for homeowners by lowering payments on their home equity loans as well as a set of measures designed to integrate Hope for Homeowners in the Making Home Affordable program.
The administration believes that up to 50 percent of at risk mortgages have second liens, and many properties in foreclosure have more than one lien. Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will work to reduce payments on the associated second lien according to a pre-set protocol. Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment under a pre-set formula determined by the Administration, allowing servicers to target second lien extinguished to the borrowers where extinguishment is most appropriate.
The administration announcement also included support for the Hope for Homeowners refinance program, which provides additional opportunities for homeowners to keep their homes in difficult times. Hope for Homeowners requires the holder of the mortgage to accept a payoff below the current market value of the home, allowing the borrower to refinance into a new FHA guaranteed loan. Refinancing into a new loan below the home's market value takes a borrower from a position of being underwater to having equity in their home. By increasing a homeowners equity in the home, Hope for Homeowners can produce a better outcome for borrowers to qualify. The new guidelines will require servicers to determine eligibility for a Hope for Homeowners refinancing. Where Hope for Homeowners proves to be viable, the servicer must offer this option to the borrower. To ensure proper alignment of incentives, servicers and lenders will receive pay for success payments for Hope for Homeowners refinancings similar to those offered for Home Affordable Modifications. These additional supports are designed to work in tandem and take effect with the improved and expanded program under consideration by Congress. The Administration supports legislation to strengthen Hope for Homeowners so that it can function effectively as an integral part of the Making Home Affordable program.
Another program that we hear is coming is raising the minimum 105% LTV to 125%. This will for sure help more homeowners. Let's hope this goes through. It will really be what we need to get things rolling. We'll keep you posted as more information is available.
The administration estimates the refinancing and modification plans will help approximately 9 million people avoid foreclosure.
"If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future," said Treasury Secretary Geithner."These are critical steps in stemming the foreclosure crisis and stabilizing the housing market, both of which are critical to our economic recovery."
Administration officials has also announced they are expanding the program to help homeowners who are delinquent and do not qualify for a modification.
The Administration had previously announced details of other new options to help bring relief to responsible homeowners under the Making Home Affordable program, including an effort to achieve greater affordability for homeowners by lowering payments on their home equity loans as well as a set of measures designed to integrate Hope for Homeowners in the Making Home Affordable program.
The administration believes that up to 50 percent of at risk mortgages have second liens, and many properties in foreclosure have more than one lien. Under the Second Lien Program, when a Home Affordable Modification is initiated on a first lien, servicers participating in the Second Lien Program will work to reduce payments on the associated second lien according to a pre-set protocol. Alternatively, servicers will have the option to extinguish the second lien in return for a lump sum payment under a pre-set formula determined by the Administration, allowing servicers to target second lien extinguished to the borrowers where extinguishment is most appropriate.
The administration announcement also included support for the Hope for Homeowners refinance program, which provides additional opportunities for homeowners to keep their homes in difficult times. Hope for Homeowners requires the holder of the mortgage to accept a payoff below the current market value of the home, allowing the borrower to refinance into a new FHA guaranteed loan. Refinancing into a new loan below the home's market value takes a borrower from a position of being underwater to having equity in their home. By increasing a homeowners equity in the home, Hope for Homeowners can produce a better outcome for borrowers to qualify. The new guidelines will require servicers to determine eligibility for a Hope for Homeowners refinancing. Where Hope for Homeowners proves to be viable, the servicer must offer this option to the borrower. To ensure proper alignment of incentives, servicers and lenders will receive pay for success payments for Hope for Homeowners refinancings similar to those offered for Home Affordable Modifications. These additional supports are designed to work in tandem and take effect with the improved and expanded program under consideration by Congress. The Administration supports legislation to strengthen Hope for Homeowners so that it can function effectively as an integral part of the Making Home Affordable program.
Another program that we hear is coming is raising the minimum 105% LTV to 125%. This will for sure help more homeowners. Let's hope this goes through. It will really be what we need to get things rolling. We'll keep you posted as more information is available.
The administration estimates the refinancing and modification plans will help approximately 9 million people avoid foreclosure.
Financial Motivational Quote May 17, 2009
"What is recipe for successful achievement? To my mind there are just four essential ingredients: Choose a Career you love...Give it the best there is in you...Seize your opportunities...and be a member of the team. In no country but America, is it possible to fulfill all four of these requirements."- Benjamin Fairless
Saturday, May 16, 2009
Bank of America To Sell China Construction Bank Stock To Raise Capital
With the new stress test results out, many banks are in need to to raise capital. Bank of America, which is required to raise 34 billion, has begun doing just that.
Bank of America has decided to reduce its stake in China Construction Bank (CCB) to 10.95% to help strengthen Bank of America's capital levels while still allowing the company to remain a long term partner with CCB.
"In our view, the cooperation between the two banks has been very successful," said Greg Curl, Bank of America Global Corporate Strategy and Planning Executive." I am pleased with the progress we have achieved with our partner. We intend to remain long term, strategic partner with CCB and maintain our ownership at or above 10 percent."
China Construction Bank is the leading commercial bank in China and consists of three principal business segments: corporate banking, personal banking and treasury operations.
Under the Strategic Assistance Agreement with CCB, Bank of America experts assist CCB with risk management, governance, bank cards, consumer banking, information technology, human resources and treasury services. Since October 2005, more than 850 teammates from across Bank of America have contributed talent to more than 100 Shared Experience Sessions, 54 collaborative and advisory projects and 36 training sessions.
The strategic agreement has also provided Bank of America associates with more than 320,000 hours of international experience through their work with CCB.
Bank of America sold 13.5 billion shares in CCB or 5.78percent to an investment consortium this week. The proceeds from the sale, after adjusting for the cost of the original investment and applicable taxes, will bolster Bank of America's common capital levels, Bank of America remains the second largest shareholder in CCB.
Bank of America has decided to reduce its stake in China Construction Bank (CCB) to 10.95% to help strengthen Bank of America's capital levels while still allowing the company to remain a long term partner with CCB.
"In our view, the cooperation between the two banks has been very successful," said Greg Curl, Bank of America Global Corporate Strategy and Planning Executive." I am pleased with the progress we have achieved with our partner. We intend to remain long term, strategic partner with CCB and maintain our ownership at or above 10 percent."
China Construction Bank is the leading commercial bank in China and consists of three principal business segments: corporate banking, personal banking and treasury operations.
Under the Strategic Assistance Agreement with CCB, Bank of America experts assist CCB with risk management, governance, bank cards, consumer banking, information technology, human resources and treasury services. Since October 2005, more than 850 teammates from across Bank of America have contributed talent to more than 100 Shared Experience Sessions, 54 collaborative and advisory projects and 36 training sessions.
The strategic agreement has also provided Bank of America associates with more than 320,000 hours of international experience through their work with CCB.
Bank of America sold 13.5 billion shares in CCB or 5.78percent to an investment consortium this week. The proceeds from the sale, after adjusting for the cost of the original investment and applicable taxes, will bolster Bank of America's common capital levels, Bank of America remains the second largest shareholder in CCB.
Friday, May 15, 2009
Thursday, May 14, 2009
I have Heard 529 Plans Are A Good Way To Save For College. What Are The Best 529 Plans.
An article was recently posted on CNNMoney on this topic. For parents saving for their children's college education, a 529 savings plan still makes sense- as long as it offers good, low-risk investment options and doesn't eat up too much in fees. There three make the grade.
Best Low- Risk 529 Plans
Illinois
Fund: Illinois Bright Start College Savings Program -- Direct-Sold Plan
Web site: brightstartsavings.com
Expenses: 0.20% to 0.63%
Low-risk option: Principal protection fund, up 2.5% last year
What it offers: Some excellent Vanguard age-based index-fund options that cost as little as 0.20%Ohio
Fund: Ohio CollegeAdvantage Savings Plan
Website: collegeadvantage.com
Manager: Fifth Third, Pimco, Vanguard, others
Expenses: 0.19% to 0.91%
Low-risk option: Fifth Third CDs (a 10-year yields 5.0%)
What it offers: Low-cost age-based and balanced funds, plus a broad array of safe options
Utah
Fund: Utah Educational Savings Plan
Web site: uesp.org
Manager: Vanguard, others
Expenses: 0.22 % to 0.35%
Low-risk option: FDIC-insured savings (a one-year CD yields 1.9%)
What it offers: Eleven options, including age-based index funds for varying risk levels.
Remeber the sooner you start saving the better.
Best Low- Risk 529 Plans
Illinois
Fund: Illinois Bright Start College Savings Program -- Direct-Sold Plan
Web site: brightstartsavings.com
Expenses: 0.20% to 0.63%
Low-risk option: Principal protection fund, up 2.5% last year
What it offers: Some excellent Vanguard age-based index-fund options that cost as little as 0.20%Ohio
Fund: Ohio CollegeAdvantage Savings Plan
Website: collegeadvantage.com
Manager: Fifth Third, Pimco, Vanguard, others
Expenses: 0.19% to 0.91%
Low-risk option: Fifth Third CDs (a 10-year yields 5.0%)
What it offers: Low-cost age-based and balanced funds, plus a broad array of safe options
Utah
Fund: Utah Educational Savings Plan
Web site: uesp.org
Manager: Vanguard, others
Expenses: 0.22 % to 0.35%
Low-risk option: FDIC-insured savings (a one-year CD yields 1.9%)
What it offers: Eleven options, including age-based index funds for varying risk levels.
Remeber the sooner you start saving the better.
Financial Motivational Quote May 14, 2009
"To laugh often and much;
To win the respect of intelligent people and the affection of children;
To earn the approbation of honest critics and endure the betrayal of false friends;
To appreciate beauty;
To find the best in others;
To give to one's self;
To leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition;
To have played and laughed with enthusiasm and sung with exultation;
To know even one life has breathed easier because you have lived-
This is to have succeeded."
Ralph Waldo Emerson
To win the respect of intelligent people and the affection of children;
To earn the approbation of honest critics and endure the betrayal of false friends;
To appreciate beauty;
To find the best in others;
To give to one's self;
To leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition;
To have played and laughed with enthusiasm and sung with exultation;
To know even one life has breathed easier because you have lived-
This is to have succeeded."
Ralph Waldo Emerson
Wednesday, May 13, 2009
Twitter Is For More Than Just Twittering. Find A Job
Financial Elite is now on Twitter. I had been delaying joining, but have finally jumped on the band wagon. So far it's pretty cool. More and more social networks are gaining momentum. We have shown before that social networking can be a great way to meet new people, but to get job in this down turned economy.
In today's society social networks are a must, especially when searching for a job! "It's mandatory to utilize the social networking platforms," according to social media expert and president of Affect Strategies Sandra Fathi.
LinkedIn, which has over 40 million users, is geared specifically toward professional networking. Expansive networks are built by posting a profile which acts as an online resume, making connections and getting references from your connections that potential employers can view.
But job seekers don't have to rely solely on others for information about possible job openings. There are a variety of services associated with social networking sites to help too, like TweetMyJobs, which sends out automatic updates of new openings in a specific field and region sent to your cell phone or by Twitter.
The greatest advantage to Facebook, Twitter, Myspace, and LinkedIn in that job candidates and employers can meet through people. Those connections make it easier to break the ice.
Fathi recommends that job seekers immediately create a LinkedIn profile, a Facebook page, join Twitter and any relevant professional networks or communities in your field.
If you haven't joined one of these social networks, what are you waiting for? Climb on board for the social networking train.
In today's society social networks are a must, especially when searching for a job! "It's mandatory to utilize the social networking platforms," according to social media expert and president of Affect Strategies Sandra Fathi.
LinkedIn, which has over 40 million users, is geared specifically toward professional networking. Expansive networks are built by posting a profile which acts as an online resume, making connections and getting references from your connections that potential employers can view.
But job seekers don't have to rely solely on others for information about possible job openings. There are a variety of services associated with social networking sites to help too, like TweetMyJobs, which sends out automatic updates of new openings in a specific field and region sent to your cell phone or by Twitter.
The greatest advantage to Facebook, Twitter, Myspace, and LinkedIn in that job candidates and employers can meet through people. Those connections make it easier to break the ice.
Fathi recommends that job seekers immediately create a LinkedIn profile, a Facebook page, join Twitter and any relevant professional networks or communities in your field.
If you haven't joined one of these social networks, what are you waiting for? Climb on board for the social networking train.
Where To Find The Best Credit Cards
Finding the best credit cards can be confusing, but here is what we found on CNNMoney recently. Picks that offer great perks to suit your spending habits.
1. Balance Transfers
The Card: iberiaBank Visa Classic
Website: creditcardsiberiabank.com
Rate: 6.25%-8.25%
This card offers zero interest on balance transfers for six months- and there is no balance transfer fee.
2. A little cash back
The Card: Schwab Bank Invest First Visa
Website: Schwab.com
Rate: 13.99%
Earn 2% unlimited cash back on every single purchase you make. You must have a Schwab One brokerage account, but there are no fees to open or maintain it.
3. A lot of cash back
The Card: Blue Cash from American Express
Website: americanexpress.com
Rate: starts at 7.99% plus prime
Charge at least $6,500 a year, and your cash-back percentage zooms from 1% to 5% on purchases at gas stations, supermarkets, and drugstores, and from 0.5% to 1.5% on everything else.
4. Cash at the pump
The Card: Pentagon Federal Visa Platinum
Website: penfed.org
Rate: 13.99%
Get 5% unlimited cash back at the pump, plus 2% on supermarket purchases and 1.25% on everything else. You must join a credit union to get the card.
5. Travel Miles
The Card: Escape by Discover
Website: discovercard.com
Rate:10.99% to 18.99%
Earn two miles for every dollar spent, plus 1,000 bonus miles each month you make a purchase for the first 12 months. Drawback: a $60 annual fee.
1. Balance Transfers
The Card: iberiaBank Visa Classic
Website: creditcardsiberiabank.com
Rate: 6.25%-8.25%
This card offers zero interest on balance transfers for six months- and there is no balance transfer fee.
2. A little cash back
The Card: Schwab Bank Invest First Visa
Website: Schwab.com
Rate: 13.99%
Earn 2% unlimited cash back on every single purchase you make. You must have a Schwab One brokerage account, but there are no fees to open or maintain it.
3. A lot of cash back
The Card: Blue Cash from American Express
Website: americanexpress.com
Rate: starts at 7.99% plus prime
Charge at least $6,500 a year, and your cash-back percentage zooms from 1% to 5% on purchases at gas stations, supermarkets, and drugstores, and from 0.5% to 1.5% on everything else.
4. Cash at the pump
The Card: Pentagon Federal Visa Platinum
Website: penfed.org
Rate: 13.99%
Get 5% unlimited cash back at the pump, plus 2% on supermarket purchases and 1.25% on everything else. You must join a credit union to get the card.
5. Travel Miles
The Card: Escape by Discover
Website: discovercard.com
Rate:10.99% to 18.99%
Earn two miles for every dollar spent, plus 1,000 bonus miles each month you make a purchase for the first 12 months. Drawback: a $60 annual fee.
Senate deal on credit cards slows!
The smack down on credit card companies had grown very popular and President Obama has stated that he would like to have the bill on his desk by Memorial Day. The Senate's new bill is tougher than a similar bill passed in the House last month. The Senate bill still faces possible amendments and could change further.
The current Senate Bill would:
- Go into effect nine months after passage, which is sooner than the House bill.
- Ban gift card issuers from charging "dormancy fees" on cards redeemed too late: the House bill doesn't address gift cards
- Prevent those under 21 from getting a credit card unless they can prove they have an income stream to pay off debt or have their parent's signature; the House bill places less onerous restrictions on those under 18.
- Allow credit card issuers to raise fees if a consumer is 60 days late on a payment, the House bill and Federal Reserve rules allow fee hikes after payment is 30days late.
Credit card industry advocates caution that the Senate bill won't be the final word on the issue, and they plan to fight some of the provisions.
"We have serious concerns with the Senate bill, and we oppose any amendments to the bill," Scott Talbott, a lobbyist for the Financial Services Roundtable, an industry group.
At the rate things are moving it will end up being next year July before this gets done. That's when the original bill was scheduled to go into action. If you think this is the right thing to do, press to have this bill passed.
The current Senate Bill would:
- Go into effect nine months after passage, which is sooner than the House bill.
- Ban gift card issuers from charging "dormancy fees" on cards redeemed too late: the House bill doesn't address gift cards
- Prevent those under 21 from getting a credit card unless they can prove they have an income stream to pay off debt or have their parent's signature; the House bill places less onerous restrictions on those under 18.
- Allow credit card issuers to raise fees if a consumer is 60 days late on a payment, the House bill and Federal Reserve rules allow fee hikes after payment is 30days late.
Credit card industry advocates caution that the Senate bill won't be the final word on the issue, and they plan to fight some of the provisions.
"We have serious concerns with the Senate bill, and we oppose any amendments to the bill," Scott Talbott, a lobbyist for the Financial Services Roundtable, an industry group.
At the rate things are moving it will end up being next year July before this gets done. That's when the original bill was scheduled to go into action. If you think this is the right thing to do, press to have this bill passed.
The Recession Is Destroying Social Security Even Further!
I can't stress the importance of saving for retirement enough. Chances are one day you will not have social security or pension to rely on. Only what you have saved in the form of 401K's, IRA's, or mutual funds.
The Social Security System will one day run out and the recession is taking its toll on Social Security. On Tuesday, the officials who oversee the program foresee that the Social Security trust fund will be exhausted by 2037 an entire four years earlier then estimated last year.
"When Social Security needs to draw down the 'surplus' the Treasury will have to borrow money, raise taxes or cut other spending in order to redeem the IOU's, said Charles Konigsberg, a federal budget expert at deficit watchdog group the Concord Coalition.
"Despite projection that Social Security can continue to pay full benefits for nearly 30 years, the sooner action is taken the more options for reform will be available and the fairer reforms will be to our children and grandchildren," said Treasury Secretary Timothy Geithner, a managing trustee of the program.
Don't rely on Social Security to be fixed. You must start your retirement savings plan as soon as possible. Check back to Financial Elite post frequently for retirement savings tips.
The Social Security System will one day run out and the recession is taking its toll on Social Security. On Tuesday, the officials who oversee the program foresee that the Social Security trust fund will be exhausted by 2037 an entire four years earlier then estimated last year.
"When Social Security needs to draw down the 'surplus' the Treasury will have to borrow money, raise taxes or cut other spending in order to redeem the IOU's, said Charles Konigsberg, a federal budget expert at deficit watchdog group the Concord Coalition.
"Despite projection that Social Security can continue to pay full benefits for nearly 30 years, the sooner action is taken the more options for reform will be available and the fairer reforms will be to our children and grandchildren," said Treasury Secretary Timothy Geithner, a managing trustee of the program.
Don't rely on Social Security to be fixed. You must start your retirement savings plan as soon as possible. Check back to Financial Elite post frequently for retirement savings tips.
Financial Motivational Quote May 13, 2009
"Your business is never really good or bad "out there" your business is either good or bad right between your own two ears."- Zig Ziglar
Tuesday, May 12, 2009
Bank Of America Unveils Bank of America Home Loans
On April 27 Bank of America announced the new Bank of America Home Loans Brand at locations nationwide and unveiled new tools through which home buyers and homeowners will find greater clarity in the home finance process. The Clarity Commitment, a single one page loan summary clearly presents to borrowers their interest rate, terms, and other details of the loan in a plain and simple language. The Bank of America Home Loan Guide is an interactive web site that arms customers with the personalized information to prepare for home ownership and make informed home buying and refinance decisions.
"We met with thousands of customers and created tools that reflect the transparency they want in the home buying process,"said Barbara Desoer, president, Bank of America Home Loans "Doing the right thing for our customer is the foundation of our brand promise is always be a responsible lender and help create successful homeowners, and these tools exemplify that promise"
These new tools help customers make informed decisions. The Clarity Commitment is a simple document that uses straightforward language designed to make it easier for customers to understand the terms of their loan. The summary includes information regarding interest rate, monthly payment, payment terms, and explanation of closing costs and other loan information. Provided both at application and at closing, the Clarify Commitment is available on most new purchase and refinance transactions, including traditional and government backed loans.
In addition to the Clarity Commitment the company introduced the Bank of America Home Loan Guide as part of the new Bank of America Home Loans Web Site bankofamerica.com/homeloans. The unique interactive guide is designed to provide prospective home buyers and existing homeowners looking to refinance with a personalized simulation of the home loan process. It helps consumers understand the criteria that drive lenders' decisions, steps they can take to be more successful in the search of the appropriate home loan and how a home loan fits into their budget and how a home loan fits into their total financial picture.
By explaining key points and highlighting the "rules" of home buying this easy-to-use guide gives consumers information that helps then to understand their options and make an informed decision.
"Purchasing a home is one of the biggest decisions a person can make, and we take seriously our responsibility to educate and arm then with the information they need to make smart decisions, " said Desoer. "Especially in this environment, it's important that consumers understand the true, comprehensive costs of home ownership so they can buy a home and enjoy it with confidence."
Bank of America Home Loans also introduced Flat Fee Mortgage Plus through the 6100 Bank of America banking centers. A new mortgage product, Flat Fee Mortgage Plus has no application fee and one single closing fee that represents the lender and other fees required for third-party services. The product features a close-on-time guarantee and best value guarantee. The Flat Fee Mortgage Plus will be available through additional channels in the future.
The Bank of America Home Loans brand represents the combined operations of Bank of America mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008.
Countrywide customers already have access to Bank of America's 6100 banking centers, a coast to coast network of Bank of America Home Loans retail locations, and one of the nation's largest ATM networks. As the new brand becomes more visible through re branded locations, account statements, marketing materials, and advertising, customers should continue to use current methods for managing their accounts and contacting customer service until the full systems conversion later this year.
The company originated and services one out of every five loans in the country, representing a servicing portfolio of almost 14 million loans. During the first quarter of 2009, Bank of America funded $85 billion in first mortgages, helping more the 382,000 Americans purchase a home or refinance their current mortgage. More than $16 billion of those mortgages were for low to moderate- income borrowers.
"Bank of America Home Loans has the scale, capacity and capability to respond to the significant customer demand we've seen recently," Desoer added. "We are actually lending in this economic environment and continue to be open for business to new and existing customers."
"Other businesses gained through the Countrywide acquisition will retain their brands, including Balboa Insurance Services, one of the leading providers of lender-placed property insurance, and LandSafe, a supplier of pre- and post- closing services.
Bank of America has committed to offer modifications for as many as 630,000 customers to help them stay in their homes. In the first quarter, the company completed loan modifications for more then 119,000 borrowers. Bank of America has more than 6400 home retention associates dedicated to this effort.
The company also announced a $35 million neighborhood preservation and foreclosure prevention package focusing on grants and low-cost loans to help local and national non profit organizations engaged in foreclosure prevention, and to purchase vacant single family homes for neighborhood preservation.
"We met with thousands of customers and created tools that reflect the transparency they want in the home buying process,"said Barbara Desoer, president, Bank of America Home Loans "Doing the right thing for our customer is the foundation of our brand promise is always be a responsible lender and help create successful homeowners, and these tools exemplify that promise"
These new tools help customers make informed decisions. The Clarity Commitment is a simple document that uses straightforward language designed to make it easier for customers to understand the terms of their loan. The summary includes information regarding interest rate, monthly payment, payment terms, and explanation of closing costs and other loan information. Provided both at application and at closing, the Clarify Commitment is available on most new purchase and refinance transactions, including traditional and government backed loans.
In addition to the Clarity Commitment the company introduced the Bank of America Home Loan Guide as part of the new Bank of America Home Loans Web Site bankofamerica.com/homeloans. The unique interactive guide is designed to provide prospective home buyers and existing homeowners looking to refinance with a personalized simulation of the home loan process. It helps consumers understand the criteria that drive lenders' decisions, steps they can take to be more successful in the search of the appropriate home loan and how a home loan fits into their budget and how a home loan fits into their total financial picture.
By explaining key points and highlighting the "rules" of home buying this easy-to-use guide gives consumers information that helps then to understand their options and make an informed decision.
"Purchasing a home is one of the biggest decisions a person can make, and we take seriously our responsibility to educate and arm then with the information they need to make smart decisions, " said Desoer. "Especially in this environment, it's important that consumers understand the true, comprehensive costs of home ownership so they can buy a home and enjoy it with confidence."
Bank of America Home Loans also introduced Flat Fee Mortgage Plus through the 6100 Bank of America banking centers. A new mortgage product, Flat Fee Mortgage Plus has no application fee and one single closing fee that represents the lender and other fees required for third-party services. The product features a close-on-time guarantee and best value guarantee. The Flat Fee Mortgage Plus will be available through additional channels in the future.
The Bank of America Home Loans brand represents the combined operations of Bank of America mortgage and home equity business and Countrywide Home Loans, which Bank of America acquired on July 1, 2008.
Countrywide customers already have access to Bank of America's 6100 banking centers, a coast to coast network of Bank of America Home Loans retail locations, and one of the nation's largest ATM networks. As the new brand becomes more visible through re branded locations, account statements, marketing materials, and advertising, customers should continue to use current methods for managing their accounts and contacting customer service until the full systems conversion later this year.
The company originated and services one out of every five loans in the country, representing a servicing portfolio of almost 14 million loans. During the first quarter of 2009, Bank of America funded $85 billion in first mortgages, helping more the 382,000 Americans purchase a home or refinance their current mortgage. More than $16 billion of those mortgages were for low to moderate- income borrowers.
"Bank of America Home Loans has the scale, capacity and capability to respond to the significant customer demand we've seen recently," Desoer added. "We are actually lending in this economic environment and continue to be open for business to new and existing customers."
"Other businesses gained through the Countrywide acquisition will retain their brands, including Balboa Insurance Services, one of the leading providers of lender-placed property insurance, and LandSafe, a supplier of pre- and post- closing services.
Bank of America has committed to offer modifications for as many as 630,000 customers to help them stay in their homes. In the first quarter, the company completed loan modifications for more then 119,000 borrowers. Bank of America has more than 6400 home retention associates dedicated to this effort.
The company also announced a $35 million neighborhood preservation and foreclosure prevention package focusing on grants and low-cost loans to help local and national non profit organizations engaged in foreclosure prevention, and to purchase vacant single family homes for neighborhood preservation.
Monday, May 11, 2009
Financial Motivational Quote May 12, 2009
"There is no way to success in our art but to take off your coat, grind paint, and work like a digger on the railroad, all day and every day."- Ralph Waldo Emerson
Sunday, May 10, 2009
Getting Smart For The Best Loans For College Tuition.
I came across this article by Eugenia Levenson from CNNMoney.com after our post regarding the best options for getting loans to pay for college tuition. The article reiterated the same options we did. Here is what the article had to say:
By now, most college bound high school seniors have accepted an admissions offer and are cruising blissfully toward graduation, summer, and their chosen campus come fall. For parents, on the other hand, the hard work of financing this education is just beginning.
Here are the options the article discussed:
Don't fight the FAFSA.
There ample reasons to dread the cumbersome Free Application for Federal Student Aid (FAFSA). "It's too long, too confusing, and too complicated," says Lauren Asher, acting president of the Project on Student Debt. That's why many families, especially those whose income may disqualify them from need based grants, are tempted to skip the form altogether. But that would be a mistake. Beside being the gateway to scholarships and grants, the FAFSA opens the door to unsubsidized government backed loans. Filing the form is also a smart insurance policy, especially in a tough economic environment. "It's always good to be able to fall back on Federal loans with competitive rates," says college consultant Fox, "Even midyear, if a parent loses a job it can be comforting to know there's at least that option." And don't worry if you haven't filed one yet. It's not to late. Colleges set their FAFSA deadlines early to draw up financial aid offers, but you can file anytime during the academic year if you decide that you want to apply for a federal loan.
Start With The Stafford
Even if you don't qualify for the subsidized version, a government - backed Stafford loan is "cheaper and has better repayment terms" than most other loans, says FinAid.org's Kantrowitz. The unsubsidized Stafford loan is available to all students, regardless of family income or credit score and has a fixed interest rate of 6.8%. That's a sweet deal, but the catch is the annual limit: $5500 for freshman, $6500 for sophomores, and $7500 for juniors and seniors.
Next up: the PLUS Loan
The federal PLUS loan, which lets families borrow up to the full cost of tuition, room, and board, has always been a solid option. The credit requirements are minimal, and parents can defer repayment until graduation (though the interest continues to accrue). If your child's college already participates in the direct loan program, you can take out the PLUS at a fixed rate of 7.9%; otherwise the rate is 8.5%. This year families won't be able to do much comparison shopping for federal loans among private lenders, which in the past competed by waiving origination fees and offering other reductions. "Loan discounts have all but evaporated" says Kantrowitz. One that's still available is a .25% rate cut for automatic payments from your checking accounts.
Tap the House
Even with declining real estate values, home-equity loans may still make sense for some families. Interest on home-equity loans of up to $100,000 used for education expenses can be tax-deductible (unless you are subject to the alternative minimum tax). "The average fixed-rate home-equity loan is pretty high now at about 8.6%" says Greg McBride, a senior analyst at Bankrate.com. "That's comparable to the PLUS loan, but the difference for the parent who's in the 25% federal marginal tax bracket is that the after-tax rate works out to 6.5%" You can get a lower initial rate with a home-equity line of credit, but McBride warns that if you use a HELOC, you must plan for the inevitable rate hikes.
If a home equity loan is out of the question, there are alternatives. For instance the Massachusetts Education Financing Authority, a nonprofit state agency, is still offering private loans at competitive rates to residents or students who attend a Massachusetts university. (Other states have similar programs, but some, like Michigan, have suspended lending because of tight credit markets.) Fox also recommends checking with the financial aid office to find out whether the college has any funds set aside for borrowers. "Some schools have been offering their own loan programs to help parents through a difficult time, and the interest rates are typically lower than a PLUS loan," She says.
Your last resort: private loans
Dozens of lenders have stopped issuing private education loans, and most that remain have been raising rates and eligibility requirements. Also, the tend to carry variable rates, so make sure you read the fine print. "Short term interest rates are at record lows and the likelihood is that rates will be higher in future years," says McBride. "Don't fall into the trap that many mortgage borrowers fell into when they focused on the introductory rate without looking down the road."
By now, most college bound high school seniors have accepted an admissions offer and are cruising blissfully toward graduation, summer, and their chosen campus come fall. For parents, on the other hand, the hard work of financing this education is just beginning.
Here are the options the article discussed:
Don't fight the FAFSA.
There ample reasons to dread the cumbersome Free Application for Federal Student Aid (FAFSA). "It's too long, too confusing, and too complicated," says Lauren Asher, acting president of the Project on Student Debt. That's why many families, especially those whose income may disqualify them from need based grants, are tempted to skip the form altogether. But that would be a mistake. Beside being the gateway to scholarships and grants, the FAFSA opens the door to unsubsidized government backed loans. Filing the form is also a smart insurance policy, especially in a tough economic environment. "It's always good to be able to fall back on Federal loans with competitive rates," says college consultant Fox, "Even midyear, if a parent loses a job it can be comforting to know there's at least that option." And don't worry if you haven't filed one yet. It's not to late. Colleges set their FAFSA deadlines early to draw up financial aid offers, but you can file anytime during the academic year if you decide that you want to apply for a federal loan.
Start With The Stafford
Even if you don't qualify for the subsidized version, a government - backed Stafford loan is "cheaper and has better repayment terms" than most other loans, says FinAid.org's Kantrowitz. The unsubsidized Stafford loan is available to all students, regardless of family income or credit score and has a fixed interest rate of 6.8%. That's a sweet deal, but the catch is the annual limit: $5500 for freshman, $6500 for sophomores, and $7500 for juniors and seniors.
Next up: the PLUS Loan
The federal PLUS loan, which lets families borrow up to the full cost of tuition, room, and board, has always been a solid option. The credit requirements are minimal, and parents can defer repayment until graduation (though the interest continues to accrue). If your child's college already participates in the direct loan program, you can take out the PLUS at a fixed rate of 7.9%; otherwise the rate is 8.5%. This year families won't be able to do much comparison shopping for federal loans among private lenders, which in the past competed by waiving origination fees and offering other reductions. "Loan discounts have all but evaporated" says Kantrowitz. One that's still available is a .25% rate cut for automatic payments from your checking accounts.
Tap the House
Even with declining real estate values, home-equity loans may still make sense for some families. Interest on home-equity loans of up to $100,000 used for education expenses can be tax-deductible (unless you are subject to the alternative minimum tax). "The average fixed-rate home-equity loan is pretty high now at about 8.6%" says Greg McBride, a senior analyst at Bankrate.com. "That's comparable to the PLUS loan, but the difference for the parent who's in the 25% federal marginal tax bracket is that the after-tax rate works out to 6.5%" You can get a lower initial rate with a home-equity line of credit, but McBride warns that if you use a HELOC, you must plan for the inevitable rate hikes.
If a home equity loan is out of the question, there are alternatives. For instance the Massachusetts Education Financing Authority, a nonprofit state agency, is still offering private loans at competitive rates to residents or students who attend a Massachusetts university. (Other states have similar programs, but some, like Michigan, have suspended lending because of tight credit markets.) Fox also recommends checking with the financial aid office to find out whether the college has any funds set aside for borrowers. "Some schools have been offering their own loan programs to help parents through a difficult time, and the interest rates are typically lower than a PLUS loan," She says.
Your last resort: private loans
Dozens of lenders have stopped issuing private education loans, and most that remain have been raising rates and eligibility requirements. Also, the tend to carry variable rates, so make sure you read the fine print. "Short term interest rates are at record lows and the likelihood is that rates will be higher in future years," says McBride. "Don't fall into the trap that many mortgage borrowers fell into when they focused on the introductory rate without looking down the road."
Deposit Image ATM's Are The Best Thing Since The Invention Of The ATM Itself.
Last week I was excited to see the image deposit ATM's had been installed at the Bank of America banking center near my office. The cool thing about it is you don't need an envelope to make a deposit. You just feed the checks or cash you are depositing and the ATM totals everything up and asks you if the total is correct. Once you agree the amount is correct you will be given a receipt with copies of the items you deposit. It's that simple.
Here is what Bank of America has to say about their new ATM's:
Another example of how Bank of America continues to find solutions to improve customer convenience in an environmentally friendly way is its more than 12,000 Deposit Image ATM's.
Like I was saying, unlike a traditional ATM, the Deposit Image allows customers to make deposits without an envelope or slip.
In the fourth quarter of 2008, customer delight with Deposit Image ATM's rose to 80% top two box score, according to a Bank of America Banking Center Satisfaction Study. An additional study across all markets shows that satisfaction continued to climb compared with the previous five quarters, and is higher than levels seen among envelope ATM customers. The continued increases in customer delight are attributed to enhanced benefits and improved performance.
The Deposit Image ATM scans checks and counts cash to process the deposits electronically. Images of the checks and a cash count are displayed on the screen and customers get to review and approve the amount deposited. Once verified, they can receive a detailed receipt with images of checks and cash count for their records and even see the posted deposit by using the Online Banking Service. By eliminating the need for envelopes and deposit slips, and upgrading software to accept and post deposits via image, Bank of America ensures customers' deposits are posted more quickly and accurately than ATM deposits made with envelopes.
Additionally, customers using deposit Image ATM's can get immediate credit for cash deposits as well as make deposits until 800 pm and still have the deposit processed the same day. This extended time frame provides greater flexibility for customers, including small business customers who may be unable to make deposits in banking centers before normal closing time.
Deposit Image ATM's drive down expenses while conserving the environment by reducing the use of paper. Processing deposits electronically is significantly less expensive than processing paper envelopes. In Addition, transportation fees have been greatly reduced as the need for armored supplier servicing has been minimized.
Since introducing Deposit Image ATM's in 2006, Bank of America has led the industry with more than a half billion items deposited via Deposit Image ATM's.
In addition to Deposit Image ATM's, Bank of America has more than 4,800 Bank of America branded ATM's that dispense cash only, creating the largest bank owned network of ATM's in the United States. In March alone, approximately 18.3 million deposits were made at all deposit ATM's,a record month and in an increase of 12.7% over last year. On April 3, Bank of America achieved another milestone, with a record day of 857,654 deposits at bank ATM's.
By the end of 2009, all Bank of America ATM's that accept deposits will convert to Deposit Image. In contrast, the bank's closest competitor has anticipated conversion of 6,900 ATM's, leaving Bank of America with a continued strong lead--approximately two times more Deposit Image ATMs.
Here is what Bank of America has to say about their new ATM's:
Another example of how Bank of America continues to find solutions to improve customer convenience in an environmentally friendly way is its more than 12,000 Deposit Image ATM's.
Like I was saying, unlike a traditional ATM, the Deposit Image allows customers to make deposits without an envelope or slip.
In the fourth quarter of 2008, customer delight with Deposit Image ATM's rose to 80% top two box score, according to a Bank of America Banking Center Satisfaction Study. An additional study across all markets shows that satisfaction continued to climb compared with the previous five quarters, and is higher than levels seen among envelope ATM customers. The continued increases in customer delight are attributed to enhanced benefits and improved performance.
The Deposit Image ATM scans checks and counts cash to process the deposits electronically. Images of the checks and a cash count are displayed on the screen and customers get to review and approve the amount deposited. Once verified, they can receive a detailed receipt with images of checks and cash count for their records and even see the posted deposit by using the Online Banking Service. By eliminating the need for envelopes and deposit slips, and upgrading software to accept and post deposits via image, Bank of America ensures customers' deposits are posted more quickly and accurately than ATM deposits made with envelopes.
Additionally, customers using deposit Image ATM's can get immediate credit for cash deposits as well as make deposits until 800 pm and still have the deposit processed the same day. This extended time frame provides greater flexibility for customers, including small business customers who may be unable to make deposits in banking centers before normal closing time.
Deposit Image ATM's drive down expenses while conserving the environment by reducing the use of paper. Processing deposits electronically is significantly less expensive than processing paper envelopes. In Addition, transportation fees have been greatly reduced as the need for armored supplier servicing has been minimized.
Since introducing Deposit Image ATM's in 2006, Bank of America has led the industry with more than a half billion items deposited via Deposit Image ATM's.
In addition to Deposit Image ATM's, Bank of America has more than 4,800 Bank of America branded ATM's that dispense cash only, creating the largest bank owned network of ATM's in the United States. In March alone, approximately 18.3 million deposits were made at all deposit ATM's,a record month and in an increase of 12.7% over last year. On April 3, Bank of America achieved another milestone, with a record day of 857,654 deposits at bank ATM's.
By the end of 2009, all Bank of America ATM's that accept deposits will convert to Deposit Image. In contrast, the bank's closest competitor has anticipated conversion of 6,900 ATM's, leaving Bank of America with a continued strong lead--approximately two times more Deposit Image ATMs.
Can I Apply For A PLUS Loan If I Was Turned Down Before?
You sure can. If you were turned down for a Parental PLUS Loan in the past couple of years you should really try again. The emergency legislation, that we have discussed before, was passed in 2008 has made PLUS loans more affordable.
The legislation made it so parent could apply for a PLUS Loan, through December 31, 2009, so long as they are not more than 180 days delinquent on a mortgage payment for their primary residence or any medical bills. In the past the time limit was 90 days.
There is a FICO credit score check of sorts, but it is to show that there are no adverse items on your credit report. However, if you have filed bankruptcy in the past five years you are not eligible for a PLUS Loan. Previously you had to be current on all debts not just mortgage payments and medical bills. With economy's current state the legislation was passed to to give PLUS Loan Lenders more leeway in forgiving late debt payments. Another plus, no pun intended, if a parent dies, I guess that's not really a plus but the PLUS loan debt is forgiven. This is a benefit over private loans, as with private loans the debt still needs to be paid.
The legislation made it so parent could apply for a PLUS Loan, through December 31, 2009, so long as they are not more than 180 days delinquent on a mortgage payment for their primary residence or any medical bills. In the past the time limit was 90 days.
There is a FICO credit score check of sorts, but it is to show that there are no adverse items on your credit report. However, if you have filed bankruptcy in the past five years you are not eligible for a PLUS Loan. Previously you had to be current on all debts not just mortgage payments and medical bills. With economy's current state the legislation was passed to to give PLUS Loan Lenders more leeway in forgiving late debt payments. Another plus, no pun intended, if a parent dies, I guess that's not really a plus but the PLUS loan debt is forgiven. This is a benefit over private loans, as with private loans the debt still needs to be paid.
Financal Motivational Quote May 10, 2009
"If a man write a better book, preach a better sermon, or make a better mouse trap than his neighbor, tho' he build his house in the woods, the world will make a beaten path to his door."- Ralph Waldo Emerson
Saturday, May 9, 2009
I Have A Subsidized StaffordLoan For My Tuition, But How Can I Get More Money?
You can apply for a unsubsidized Stafford Loan too. If you have maxed out your subsidized loan you can get another $2,000 a year from an unsubsidized Stafford Loan. Many students unknowingly leave Stafford Loan money on the table because they don't know that it is available to them. Your school's financial aid office should make you aware of the additional loan money that is available. If they haven't, get on it.
Financial Motivational Quote May 9, 2009
"We succeed only as we identify in life, or in war, or in anything else, a single overriding objective, and make all other consideration bend to that one objective." Eisenhower
Friday, May 8, 2009
Is Everybody passing the Bank Stress Test?
The results are now in on the Bank Stress Test. The Federal Reserve announced this plan for the stress test back in February allowing to look at the financials of our nation's largest financial institutions.
The test revealed the bank's capital adequacy in the event of a hypothetical worst case economic scenario over two years. The test showed that under a particularly long lasting and dire economic scenario, this is what the test showed us about the the top 10 financial institutions:
1. Bank of America- would need $33.9 billion
2. Wells Fargo- would need $13.7 Billion
3. GMAC- would need $11.5 billion
4. Citigroup- would need $5.5 billion
5. Regions Financial- would need $2.5 billion
6. Sun Trust- would need $2.2 billion
7. Morgan Stanley- would need $1.8 billion
8. KeyCorp- would $1.8 billion
9. Fifth Third Bancorp- would need $1.1 billion
10.PNC- would need $600 million
The test revealed the bank's capital adequacy in the event of a hypothetical worst case economic scenario over two years. The test showed that under a particularly long lasting and dire economic scenario, this is what the test showed us about the the top 10 financial institutions:
1. Bank of America- would need $33.9 billion
2. Wells Fargo- would need $13.7 Billion
3. GMAC- would need $11.5 billion
4. Citigroup- would need $5.5 billion
5. Regions Financial- would need $2.5 billion
6. Sun Trust- would need $2.2 billion
7. Morgan Stanley- would need $1.8 billion
8. KeyCorp- would $1.8 billion
9. Fifth Third Bancorp- would need $1.1 billion
10.PNC- would need $600 million
Thursday, May 7, 2009
Continuing Down The Economic Road To Recovery
Wow! What another great week of economic good news. Sign, sign, everywhere a sign things are improving.
Good economic news started on Monday with pending home sales jumping 3.2%. Buyers defied expectations with an increase in signed sales contracts in March.
The pending home sales index for March from the National Association of Realtors jumped 3.2% from February, surprising economists who were looking for the index to hold steady.
We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Lawrence Yun, NAR's chief economist. And, the upturn may have been boosted by the first time homebuyers tax credit, a temporary measure that will lapse in December.
"If you subscribe to the theory that the global economic crisis started with the U.S. housing market and will end there, you're going to be encouraged by reports like this that suggest housing is bottoming," said Kevin D. Mahn, managing director at Hennion & Walsh.
On Tuesday, Federal Reserve chairman, Ben Bernanke says economic recovery will begin later in 2009.
"We continue to expect economic activity to bottom out, then to turn up later this year," said Bernanke in a prepared testimony.
Also, 0n Tuesday, "Some investors were expecting stock prices of zero to be reality," said Mike O'Rourke, chief market strategist with BTIG, an institutional brokerage firm in New York. Those fears appear to be wildly overblown.
My favorite vacation spot and home of "The Happiest Place on Earth", Disney beat estimates. Disney President and CEO Robert A. Iger said, " We remain focused on our core business strategy and believe our creativity, brands and business will serve us well as the economy recovers."
On Wednesday, The ADP said there were 31% fewer private sector job losses in April, while outplacement firm says pace of layoffs slowed.
"There's a sense here of a turn, which is good news" said Joel Prakken, an ADP spokesman and chairman of Macroeconomic Advisors, LLC.
On Thursday, the number of people filing first time unemployment claims fell by 34,000.
"We are seeing some improvement in the labor market," said Mark Vitner, an economist at Wachovia Economics Group. And Thursday's report suggests "that the most recent peak in layoffs is behind us," he added.
Every week I get more and more excited at watching this turn around begin. As the good news continues so does the road to economic recovery.
Good economic news started on Monday with pending home sales jumping 3.2%. Buyers defied expectations with an increase in signed sales contracts in March.
The pending home sales index for March from the National Association of Realtors jumped 3.2% from February, surprising economists who were looking for the index to hold steady.
We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around," said Lawrence Yun, NAR's chief economist. And, the upturn may have been boosted by the first time homebuyers tax credit, a temporary measure that will lapse in December.
"If you subscribe to the theory that the global economic crisis started with the U.S. housing market and will end there, you're going to be encouraged by reports like this that suggest housing is bottoming," said Kevin D. Mahn, managing director at Hennion & Walsh.
On Tuesday, Federal Reserve chairman, Ben Bernanke says economic recovery will begin later in 2009.
"We continue to expect economic activity to bottom out, then to turn up later this year," said Bernanke in a prepared testimony.
Also, 0n Tuesday, "Some investors were expecting stock prices of zero to be reality," said Mike O'Rourke, chief market strategist with BTIG, an institutional brokerage firm in New York. Those fears appear to be wildly overblown.
My favorite vacation spot and home of "The Happiest Place on Earth", Disney beat estimates. Disney President and CEO Robert A. Iger said, " We remain focused on our core business strategy and believe our creativity, brands and business will serve us well as the economy recovers."
On Wednesday, The ADP said there were 31% fewer private sector job losses in April, while outplacement firm says pace of layoffs slowed.
"There's a sense here of a turn, which is good news" said Joel Prakken, an ADP spokesman and chairman of Macroeconomic Advisors, LLC.
On Thursday, the number of people filing first time unemployment claims fell by 34,000.
"We are seeing some improvement in the labor market," said Mark Vitner, an economist at Wachovia Economics Group. And Thursday's report suggests "that the most recent peak in layoffs is behind us," he added.
Every week I get more and more excited at watching this turn around begin. As the good news continues so does the road to economic recovery.
I Have Been Approved For A Stafford Loan, But I Need More Money For Tuition. Where Can I Get More Money?
Another great federal student loan program, which we have mentioned before, is the Parent PLUS Loan. With this loan the parent borrowers the money rather than the student. Parents are able to borrow up to full amount of the remaining college costs minus any other student aid and other loans. The nice thing is there is no income limit. For the majority of borrowers the interest rate is fixed at 8.5%. If the school is part of the program that has you borrow directly from the federal government, rather than using a third party lender the rate is 7.9%. One thing to consider is only about 20% of the schools are part of the Federal Direct Loan Program.Something else to consider is that you should only apply for the Parent PLUS Loan after the student has maxed on the Stafford Loans. The Parent PLUS Loan is a great option, but Stafford Loans are better because the interest rate is lower.
How Do I Get A Stafford Loan?
To apply for a Stafford Loan, or any other student financial aid, you have to complete the Free Application for Federal Student Aid, also known as FAFSA. Without completing this application you won't get any sort of financial student aid. It is time consuming to complete. So set aside some time to do so. And pack a lunch because it can take a few hours to complete. Don't let that scare you though. You must do this to get a Stafford Loan, but it is worth it in long run. Just do it. Your school or university's financial aid office should be able to assist you in completing this form.
Financial Motivational Quote May 7, 2009
"Try not to become a man of success, but rather to become a man of value. He is considered successful in our day who gets more out of life than he puts in. But a man of value will give more than he receives."- Albert Einstein
Wednesday, May 6, 2009
How Much Can I Borrow For My Tuition With A Stafford Loan?
Emergency legislation was recently passed increasing the amount you can borrow with a Stafford Loan by $2,000 a year. This began in the 2008-2009 school year. For Freshman the loan amount is $5,500; Sophomores $6,500; and juniors and seniors can borrow up to $7,500. If you are not claimed by your parents as a dependant you are eligible for higher loan amounts.
Financial Motivational Quote May 6, 2009
"The crippling of individuals I consider the worst evil of capitalism. Our whole educational system suffers from this evil. An exaggerated competitive attitude is inculcated into the student, who is trained to worship acquisitive success as a preparation for his future career."- Albert Einstein
Tuesday, May 5, 2009
Should I Use My IRA To Pay For My Childs College Tuition?
We have discussed this before about using your 401K to pay pay for your children's education. You don't want to hit up your retirement funds to pay for other expenses. Again, with social security going away, what are going to live in on? I hope your kids appreciate their college education, because you are probably going to have to live with them if you don't have enough retirement savings. You could also be jeopardizing their chances for financial aid because the withdrawal from your IRA can be treated as part of your income. You could be making too much money, where as you might not have before the withdrawal. Do not use your IRA, 401K, or any other retirement funds to pay for your children's college tuition.
One piece of good news if you go against my advice and make the withdrawal anyway, unlike a 401K withdrawal, you will not pay a 10% early withdrawal fee if you are using to pay your child's tuition. However, you will have to pay income tax on the amount you withdraw. If you have a Roth IRA though, the withdrawal amount will not be taxed. Though earnings made through interest may be taxed. Bottom line don't do it.
One piece of good news if you go against my advice and make the withdrawal anyway, unlike a 401K withdrawal, you will not pay a 10% early withdrawal fee if you are using to pay your child's tuition. However, you will have to pay income tax on the amount you withdraw. If you have a Roth IRA though, the withdrawal amount will not be taxed. Though earnings made through interest may be taxed. Bottom line don't do it.
Financial Motivational Quote May 5, 2009
"If A equals success, then the formula is A equals X plus Y and Z, with X being work, Y play, and Z keeping your mouth shut."- Albert Einstein
Monday, May 4, 2009
If I Shouldn't Take 401K Loan Out To Pay For My Children's Education, How About A 401K Loan?
This is a similar question to the one we answered regarding taking out a 401K loan to pay off credit card debt, with a similar answer...Don't do it. You must resist the temptation to take a 401K loan out to pay for other expenses. In the state of the current economy it is very dangerous to borrow money from your 401K. Although the economy is improving, layoffs are still occurring. A layoff can happen at any time and if it does your loan will be treated as a withdrawal. You will have to pay income tax on the entire amount you borrowed and if you are under 59 1/2 you will have to pay a 10% early withdrawal on top of it. If you need money for college, federal student loans are your best bet.
Financial Motivational Quote May 4, 2009
"Many of life's failures are people who did not realize how close they were to success when they gave up."- Thomas Edison
Sunday, May 3, 2009
Should I Stop Contributing To My 401K To Start Saving For College For My Children?
We discussed a similar question about stopping contributions to your 401k's to pay off credit card debt. I know you love your children and want the best for them. This is going to sound selfish, but you should not stop contributing to your 401k to fund your children's college education.
If you are looking for additional funds to pay for your children's education then it is obvious that you probably don't have an emergency fund either. Right now in the current state the economy is in, it is imperative to have an emergency fund of least six to eight months of expenses.
Again I know you want your children to be able to live up to their full potential, but jeopardizing your financial security is not the way to do it. Also in this point in time, your 401K has probably taken a beating. When people's investments tank their instincts tell them to run, but this is not the time to run. It is the time to stand and fight. You need to keep your money in your 401k and continue to invest even though it doesn't seem like the right thing to do. I am assuming that you have at least ten years until you retire. The reason I am telling you to keep your money in your 401K is this: When the market is down you are able to buy more shares of what you are investing in, and the more money you will make when the stock market goes back up.
Also, you are going to need as much money as you can get your hands on when you retire. With the threat of social security being gone one day your 401k, IRA's, and cash savings will be all that you will have to rely on. If you don't have retirement savings you may one day be a financial burden to your children. So unless you want to work for the rest of your life or live with your children after retirement don't withdrawal funds from your 401k to pay for your children's education. I am not telling you to leave your children high and dry without an education. There are several federal loan programs to choose from, whether it be the military, employer tuition assistance, or loan forgiveness programs to pay for a college education.
If you are looking for additional funds to pay for your children's education then it is obvious that you probably don't have an emergency fund either. Right now in the current state the economy is in, it is imperative to have an emergency fund of least six to eight months of expenses.
Again I know you want your children to be able to live up to their full potential, but jeopardizing your financial security is not the way to do it. Also in this point in time, your 401K has probably taken a beating. When people's investments tank their instincts tell them to run, but this is not the time to run. It is the time to stand and fight. You need to keep your money in your 401k and continue to invest even though it doesn't seem like the right thing to do. I am assuming that you have at least ten years until you retire. The reason I am telling you to keep your money in your 401K is this: When the market is down you are able to buy more shares of what you are investing in, and the more money you will make when the stock market goes back up.
Also, you are going to need as much money as you can get your hands on when you retire. With the threat of social security being gone one day your 401k, IRA's, and cash savings will be all that you will have to rely on. If you don't have retirement savings you may one day be a financial burden to your children. So unless you want to work for the rest of your life or live with your children after retirement don't withdrawal funds from your 401k to pay for your children's education. I am not telling you to leave your children high and dry without an education. There are several federal loan programs to choose from, whether it be the military, employer tuition assistance, or loan forgiveness programs to pay for a college education.
What Are the Best Federal Student Loan Programs?
The options of paying for your children's college education with a home equity loan or a line of credit are petty much null and void these days. We have looked into loan forgiveness programs and tuition assistance from employers and now we'll take a look at federal student loan programs as variable options for funding college educations..
-If you are looking to start college in 2009-2010 look into getting a Stafford loan. Stafford loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants, and work study. Nearly all students are eligible to receive Stafford loans regardless of credit.
-If a Stafford loan is still not enough look into a Parent PLUS Loan. The federal Parent PLUS Loan helps parents and guardians with good credit borrow up to the cost of the education for undergraduate children. Parent PLUS Loan funds can be used for tuition, supplies, housing and more.
-If you are looking to start college in 2009-2010 look into getting a Stafford loan. Stafford loans are federal student loans made available to college and university students to supplement personal and family resources, scholarships, grants, and work study. Nearly all students are eligible to receive Stafford loans regardless of credit.
-If a Stafford loan is still not enough look into a Parent PLUS Loan. The federal Parent PLUS Loan helps parents and guardians with good credit borrow up to the cost of the education for undergraduate children. Parent PLUS Loan funds can be used for tuition, supplies, housing and more.
- Do whatever you can to not get a private student loan.
- If you are graduating from college with student loan debt make sure you now your repayment options.
- If college savings are invested in the stock market and you are going to begin college in the next couple of years, you may want to start transferring those savings to safer instruments. The stock market is likely to continue its roller coaster ride for a while yet.
Finding Ways to Pay College Tuition
Saving for college tuition these days pretty much requires parents to start saving for our college futures as soon as we're born. But there programs out there to help pay for college.
A great way to pay for college tuition is to start your chosen career as soon as possible. Many employers offer tuition assistance programs. When starting my career in banking my employer, Bank of America, paid my tuition plus for all of my books.
Generally, you need to choose a major in your career field. Of course this should seem like common sense, but it is what most employers require. They want you to be long term employees if they are shelling out the money to pay for your education. In my case, for example, my finance degree fit in perfectly, but accounting, business, etc. would have worked as well. Getting a medical degree would not work with banking for instance.
Most tuition assistance programs require you to pay the tuition upfront and then you are reimbursed at the end of the semester. But the major requirement for reimbursement is you have to pass each course with a "C" or better to get your tuition paid for.
Usually, each semester will relatively cost the same. So once you make the initial investment yourself you can keep using the same money over and over again once you are reimbursed at the end of the semester.
If you have chosen your career field definitely check with prospective employers to see if they offer tuition assistance programs. Even if you don't want to get a degree you can still take a course here and there and help make yourself a more knowledgeable employee. Remember education is power.
A great way to pay for college tuition is to start your chosen career as soon as possible. Many employers offer tuition assistance programs. When starting my career in banking my employer, Bank of America, paid my tuition plus for all of my books.
Generally, you need to choose a major in your career field. Of course this should seem like common sense, but it is what most employers require. They want you to be long term employees if they are shelling out the money to pay for your education. In my case, for example, my finance degree fit in perfectly, but accounting, business, etc. would have worked as well. Getting a medical degree would not work with banking for instance.
Most tuition assistance programs require you to pay the tuition upfront and then you are reimbursed at the end of the semester. But the major requirement for reimbursement is you have to pass each course with a "C" or better to get your tuition paid for.
Usually, each semester will relatively cost the same. So once you make the initial investment yourself you can keep using the same money over and over again once you are reimbursed at the end of the semester.
If you have chosen your career field definitely check with prospective employers to see if they offer tuition assistance programs. Even if you don't want to get a degree you can still take a course here and there and help make yourself a more knowledgeable employee. Remember education is power.
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