Dow Jones Index Drops to 6800 For The First Time In 12 Years
March 2, 2009 by Erik Folgate
Filed under Banking, Credit and Debt, Economy
I don’t know what to tell you. Even Warren Buffet has lost confidence in our economy. Much of the country is not paying attention to the fact that we are 10 percentage points away from nationalizing a bank, the government pledging about $1.5 trillion dollars in 6 weeks, and the largest insurance company and auto maker dwindling to nothing.
Here are my thoughts on why the stock market continues to go south:
- Investors are reacting negatively to the massive amounts of spending in the Obama economic recovery agenda.
Reduce Your Financial Risk During This Recession
February 26, 2009 by Erik Folgate
Filed under Credit and Debt, Insurance, Planning
The best thing you can do for you and your family during this economic recession is reduce the risk in your life. This is not the time to be taking uncalculated risks with your money, your career, or your future. Here are three ways you can reduce the financial risk in your life today:
Eliminate As Much Debt As Possible: Put together a plan to start reducing your personal debt. There are many different strategies to reduce your debt. If you have a bunch of debts with similar balances, then start paying off the one with the highest interest rate first. If you have a bunch of debts with a large range of balances, then start paying off the smaller ones first to get them out of the way. Read my plan to get out of debt here.
Your Credit Card Statement Will Look Different Soon
January 14, 2009 by Erik Folgate
Filed under Credit Cards, Credit and Debt
Over the past few years with the credit crisis, our government has finally started to realize that credit card companies will do anything and everything to hide their unscrupulous practices, terms, and conditions. As part of a credit card regulation reform, credit card companies will be required to change the look of their credit card statements and terms & conditions.
Here are some things that will change on your statement:
- Late payment warning box
- Minimum payment warning box.
- Separate area detailing changes to your account terms and conditions
Charles Schwab’s 8 Step Savings Fundamentals Plan
November 21, 2008 by Erik Folgate
Filed under Credit and Debt, Economy, Spending and Saving
I ran across this eight step plan rolled out by Charles Schwab to help others prioritize what to do with their money. Here is the list:
1. Contribute to your company’s retirement plan at least up to the amount of any match offered.
2. Pay off non-deductible, high-interest debt, such as credit cards.
3. Create an emergency fund with three months’ worth of living expenses (keep in a savings account).
4. Max out the rest of your 401(k) contributions.
5. Save for a child’s education (in a 529 savings plan or Coverdell account).
How To Handle A Credit Card Debt in Collections
October 30, 2008 by Erik Folgate
Filed under Credit Cards, Credit and Debt
A Money Crasher’s reader recently sent me a message about a credit card balance in collections. I thought that you all would benefit from his/her question and how I answered it.
Question:
I have a credit card debt of a little of 8,000. It went to collection, and I just don’t have the money to pay it off. I thought I would be able to use my student loan to pay it off, but it didn’t come through. Do you think it would be possible for me to set up a payment plan with the collection agency, and if so, how should I go about it? I know that I won’t be able to pay a lot at first because I just don’t have the money while in school, but once I get done (may 09), I’ll be able to pay it off a lot quicker.
The Use of Layaway Is Becoming Popular Again With Retailers
October 28, 2008 by Erik Folgate
Filed under Consumer News, Credit and Debt, Spending and Saving
When I was a kid, if I was at the store with my mother and I pointed to a big ticket item that I wanted, she woud reply, “We’d have to put that on layaway to afford that!”. I didn’t really know what “layaway” was, but then she explained it to me when I was older and it made a lot of sense. Pay for something weekly or monthly increments until you’ve paid for it in full. Then, they give you the item. However, that was back in the 80’s when it wasn’t as easy to get a credit card or home equity line of credit. In the past 20 years, the use of credit cards and home equity lines has skyrocketed, and the average consumer carries thousands of dollars in debt. Our culture has changed since our grandparents and parents were young. Instead of saving up to pay for something, we want it now, so we buy now and pay later. But, all of this paying later business equals billions of dollars spent on interest every year on products that GO DOWN in value, including cars. But now that the economy has slowed down and many Americans are starting to realize that they need to get out of debt, the use of layaway in the retail industry is coming back.
Frequently Asked Questions: Should I Sign Up With A Debt Consolidation Service?
October 28, 2008 by Erik Folgate
Filed under Credit and Debt, FAQs
Should I Sign Up With A Debt Consolidation Service?
Banks Are Tightening Up On Extending Credit
September 25, 2008 by Erik Folgate
Filed under Banking, Credit and Debt
One of the biggest changes you will see from the fallout of the Wall Street meltdown is banks severely tightening up on their lending practices. Not only will you have a harder time getting a home loan, but you’ll have a much harder time getting a car loan, line of credit, and home equity loan.
Here is an excerpt from a CNN article:
Consumers whose credit rating teeters between ‘good’ and ‘not so great’ are the ones getting squeezed the most, added Carole Merchant, a fellow Bank of the West executive vice president in the company’s indirect lending business.
Richard Branson Makes It Easier To Borrow Money From Your Family
September 5, 2008 by Erik Folgate
Filed under Credit and Debt, Family and Relationships, Real Estate
Instead of sending the average joe to the moon, Richard Branson started taking on a much less glamorous endeavor. One of his many Virgin offshoots called Virgin Money, has put together a peer-to-peer lending system for families. You can visit the site here.
The products they offer are mortgages, business loans, student loans, and personal loans. Branson uses tactics to sell the product by encouraging you to “keep the wealth in the family”, and he promises better interest rates, because your friend or family member sets the interest, not some corporate bank. Sounds like a pretty good deal, right?
Is The Credit Crunch The Next Bubble To Burst?
August 25, 2008 by Erik Folgate
Filed under Consumer News, Credit and Debt
JLP from All Financial Matters made a great insight about the next financial bubble we face in the United States.
Much like sub prime mortgages are packaged together and sold to large financial institutions to earn from the interest of the borrowers, credit card debt is also packaged together and sold off to larger financial institutions to reap the benefits of the hefty interest rates that borrowers pay. if you think that unscrupulous lending practices were taking place in the sub prime mortgage sector, you don’t even want to know about the credit card lenders. Credit card lenders send applications to ANYONE and EVERYONE. Dead people, dogs, people with zero money to their name, children, and any other social security number they can get their hands on. Credit card companies have spent the last thirty years literally trying to financially drive this country into the ground. We’ve seen the statistics of $600 billion dollars of credit card debt in this country, and it is no joke. This is a bubble waiting to happen.
