Credit/Debt
New Credit Card Rules Take Effect
Monday, August 23rd, 2010
Credit card companies are now under new rules that, in most cases, put a $25 limit on how much they can charge customers who pay their bills late. The Wall Street Journal reported that the restrictions could wipe out billions of dollars in annual fee revenue. That has left credit card issuers doing what they ... [Read more]
Still Stressed About Debt
Tuesday, June 8th, 2010
Americans are paying down their debt, but that hasn’t eased their stress. Some 46 percent of American adults say they are stressed about their debts, according to a new Associated Press-GfK survey. That’s about the same as last year. Those feeling the most stress are women, married couples, people age 30-44, and the poor. Key ... [Read more]
Do You Need Credit Monitoring?
Tuesday, June 8th, 2010
Everywhere you look, it seems, some company is offering to monitor your credit report – for a fee. Do you need the protection? A recent CNNMoney.com story said most people do not. The article noted that using a credit-monitoring service won’t prevent anyone from opening credit in your name. The only way to do that ... [Read more]
Is Bankruptcy Ever Okay for a Christian?
Wednesday, June 2nd, 2010
With many people still struggling to find work, bankruptcy filings continue to grow. More than 500,000 people have filed so far this year, according to the National Bankruptcy Research Center. That’s up 17 percent from last year at this time. While bankruptcy’s stigma has weakened in recent years, it is still an especially troubling topic ... [Read more]
The Road to Financial Freedom…
Wednesday, April 14th, 2010
…is driven in a paid-for vehicle. While developing a set of detailed recommended spending plans for various size households at various incomes, it became clear to me that in order to live in financial freedom it’s essential to avoid financing vehicles. MSN recently pointed out that most of today’s vehicles should be able to make ... [Read more]
For Richer, For Poorer
Wednesday, March 17th, 2010
There was a stunning story on WalletPop recently of a man who told his wife of 12 years that he had $68,000 of credit card debt. Throughout their marriage they had maintained separate credit cards and apparently didn’t talk about how they were each using their cards. Now the man wanted his wife to co-sign ... [Read more]
Should You Cancel An Unused Credit Card?
Tuesday, March 9th, 2010
A common question I get in workshops is, “Will it hurt my credit score if I close one of my credit card accounts?” The answer is “maybe.” But the reasons why or why not may surprise you. It is commonly thought that, especially when it comes to a card you’ve had for a long time, ... [Read more]
The Easiest Step Toward Becoming Debt-Free
Monday, March 8th, 2010
The personal finance press is filled with articles on getting out of debt. Here’s the latest example. The article has some helpful advice. However, like most I’ve read on the topic, it misses the single easiest step toward ditching the debt, which is to fix your payments. Here’s what I mean. Let’s say you have ... [Read more]
The Good That Credit Cards Can Do
Friday, March 5th, 2010
Some say that no one should have a credit card. They argue that charging purchases puts people on the path to financial ruin. To be sure, there are people who would be better off without credit cards. However, just because some people get into car accidents doesn’t mean no one should own a car. Used ... [Read more]
What To Do With Unused Credit Cards
Tuesday, January 26th, 2010
In my “Money, Purpose, Joy” workshop, I always get lots of questions in the section on credit scores. And one of the most common questions is whether to close old, unused accounts. The general answer is no, as explained in detail in this helpful Bankrate.com article. The main reason to keep the account open has ... [Read more]
The Warmth of Winter
Monday, January 18th, 2010
As another Chicago winter stretches on, I’ve been longing for spring. And isn’t that how it is whenever we go through a wintry financial season? We can’t wait for a better one to begin. In my mid 20’s, I inherited $60,000 from an uncle. I used the money to create my dream job, a newsletter ... [Read more]
A Credit Score Short Course
Thursday, January 7th, 2010
Your credit score impacts everything from the interest rate on your mortgage, to your insurance premiums, to whether you’ll get the job you applied for. According to MSN’s Liz Pulliam Weston, today’s ideal is to have a score of 740 or higher (scores range from 300-850). We are all entitled to a free credit report ... [Read more]
The Credit Card Game is Changing
Monday, December 21st, 2009
Sweeping changes are coming to the credit card world, with issuers facing many new rules and regulations starting February 22nd. The Credit CARD Act will restrict issuers’ ability to raise interest rates, prohibit them from charging various fees, and more. As a result, according to an article in The Wall Street Journal, issuers are quick ... [Read more]
“Go” Toward a Better Financial Life in 2010
Wednesday, December 16th, 2009
Have you ever noticed how often personal finance advice is about what not to do? Many are the stories about our lack of savings, high debt loads, and short-term thinking. We are constantly warned that we shouldn’t spend so much, shouldn’t take on so much debt, and shouldn’t focus on today with no regard for ... [Read more]
What I Believe
Wednesday, November 18th, 2009
I am very excited about the launch of this new web site and blog. Switching from the eNewsletters I’ve been writing for the past three years to a blog will allow for more of a two-way dialogue with readers and will free me to write about more money-related topics. Since this marks the beginning of ... [Read more]
The Fragile State of Our Finances
Friday, November 13th, 2009
If you faced an unexpected $2,000 expense, how confident are you that you’d be able to come up with the money? According to a recent survey from the market research firm TNS, less than half of us believe we could find the funds. Of those who said they could, about half said they would tap ... [Read more]
Your Life is an Open Book
Thursday, October 8th, 2009
It sounds like a horrific scene out of some sci-fi movie set decades down the road – lots of computer databases filled with lots of information about…you! But it’s not some fictionalized account of the future; it’s today’s reality. As described in Consumer Reports, information about your use of credit, insurance claims, medical history, and ... [Read more]
The Hard Lessons of a College Education
Wednesday, September 23rd, 2009
Student loan defaults are rising, according to an article in the Washington Post. A quarter of a million student loans went into default in the Education Department’s most recent period. Some blame high interest rates on student loans. However, a survey by student loan provider Sallie Mae and Gallup identified another factor in the high ... [Read more]
Lots of People Just Getting By
Wednesday, September 23rd, 2009
According to a new national survey by CareerBuilder, over 60 percent of today’s workers always or usually live paycheck to paycheck. As reported on the MSN Smart Spending blog, that’s up from 49 percent last year and 43 percent the year before. Even 30 percent of workers earning $100,000 or more say they’re living paycheck ... [Read more]
Car Loans Gone Crazy
Wednesday, September 9th, 2009
America is a car-crazy culture. Consider these statistics from a recent Minyanville article. In 1970 there were 529 cars per 1,000 people in the U.S. Today there are 765 cars per 1,000 people. The number of cars per person in the U.S. is 40 percent higher than in Europe, 500 percent higher than in China, ... [Read more]
The Give and Take of Credit Card Fees
Wednesday, August 12th, 2009
American Express and Discover will soon stop fining cardholders for going over their credit limit, an early result of new legislation designed to limit such fees. However, American Express plans to raise its late fees. And Consumer Reports revealed another way that American Express plans to replace its lost over-limit fee income: holders of American ... [Read more]
Sleeping Well During the Recession
Thursday, July 23rd, 2009
If you’ve been losing sleep over your finances, you’re not alone. According to a new survey, more than two-thirds of people say money issues are keeping them up at night. As reported on the Walletpop blog, more than one-fifth of respondents blamed credit card debt for the dark circles under their eyes. A prime cause ... [Read more]
Inquiring Minds
Thursday, July 23rd, 2009
These days, everyone from prospective employers to cell phone service providers are looking at your credit report. But not all credit report inquiries are created equal. As reported on Mainstreet.com, a “soft inquiry” is made when you request your free credit report or a company where you’ve applied for a job pulls your report. Such ... [Read more]
New Ways to Pay Off Student Loans
Thursday, July 23rd, 2009
For those struggling under the weight of too much student loan debt, some new forms of relief are now available. Those working in low-income fields may be eligible for an Income-Based Repayment Plan, which became available the first of this month. An article on Kiplinger.com used an example of someone making $20,000 per year with ... [Read more]
Inquiring Minds
Thursday, July 9th, 2009
These days, everyone from prospective employers to cell phone service providers are looking at your credit report. But not all credit report inquiries are created equal. As reported on Mainstreet.com, a “soft inquiry” is made when you request your free credit report or a company where you’ve applied for a job pulls your report. Such ... [Read more]
New Ways to Pay Off Student Loans
Thursday, July 9th, 2009
For those struggling under the weight of too much student loan debt, some new forms of relief are now available. Those working in low-income fields may be eligible for an Income-Based Repayment Plan, which became available the first of this month. An article on Kiplinger.com used an example of someone making $20,000 per year with ... [Read more]
An Unsettling Approach to Debt
Tuesday, May 12th, 2009
The New York Attorney General’s office has announced an investigation into 14 debt settlement companies across the country, which it says “often prey upon consumers who find themselves unable to keep up with credit card payments in these difficult economic times.” In a recent press release, Attorney General Andrew Cuomo described debt settlement as a ... [Read more]
Home Improvement
Friday, May 1st, 2009
“I delight in your decrees; I will not neglect your word.” – Psalm 119:16 In the mid 1990s, Kevin Bauman began photographing abandoned houses in his hometown of Detroit. It was a creative outlet, a way to express his amazement and concern that “a once great city could find itself in such great distress.” Viewing ... [Read more]
How Serious Are You?
Monday, March 2nd, 2009
“Do not withhold good from those who deserve it, when it is in your power to act. Do not say to your neighbor, ‘Come back later; I’ll give it tomorrow’—when you now have it with you” – Proverbs 3:27-28 When Hal and Dee were in their mid-fifties, they found themselves with $50,000 of credit card ... [Read more]
Irrational Money Moves
Monday, December 22nd, 2008
Some of the most interesting (and odd!) research about money comes from behavioral economists and psychologists. As noted in a recent Economist article, one study found that diners tend to spend more in a restaurant named “Cafe 97″ than one named “Cafe 17.” Another study looked the behavior of people who carry a balance on ... [Read more]
The Gift of a Debt-Free Holiday
Wednesday, November 12th, 2008
An estimated 12 million people are still paying off debts they racked up buying holiday gifts last year. That’s among the more sobering findings from a new holiday survey conducted by Consumer Reports. The lingering debts may be one reason why nearly 60 percent of people plan to use a gift budget this year–a much ... [Read more]
A Credit Score Game Changer
Wednesday, November 12th, 2008
Even if you make no changes in how you use credit, your credit score could change for the worse in the near future, according to a story on MarketWatch.com. The issue is that credit card companies are lowering some people’s credit limits because more people are falling behind on their payments. With a lower credit ... [Read more]
Never Forget Who You Are
Tuesday, November 4th, 2008
“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. – ... [Read more]
Anchors in the Storm
Wednesday, October 1st, 2008
“The grass withers and the flowers fall, but the word of our God stands forever.” – Isaiah 40:7 (Note: I was going to conclude our five-part series on getting out of debt this month. However, with the current state of the economy I thought we could all use a refresher on the timeless biblical principles ... [Read more]
Building On a Solid Foundation
Wednesday, September 24th, 2008
Much of the financial crisis gripping our country can be blamed on bad mortgages. Some say the mortgage mess is due to a lack of regulation or corporate oversight. Others say borrowers simply bit off more than they could chew. While the blame game intensifies, the Associated Press just reported on new Census Bureau data ... [Read more]
Staying the Course
Tuesday, September 2nd, 2008
“To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, ‘My grace is sufficient for you, for my power ... [Read more]
Protect Yourself From Overdraft Protection
Monday, August 18th, 2008
If you use your debit card to make a purchase but don’t have enough money in your account, chances are good that your bank will allow the transaction to go through, helping you avoid the embarrassment of a checkout line rejection. However, as pointed out in a recent CNNMoney.com article, there’s a cost to the ... [Read more]
Changing Our Money Ways
Monday, August 18th, 2008
With our tough economy leading people to eat out less often, switch from SUVs to gas sippers, and generally spend less, an MSN columnist recently wondered what would happen if we all suddenly got and stayed money-smart? That is, what if we paid our credit cards in full each month (46 percent of households carry ... [Read more]
Your Number Matters
Friday, August 8th, 2008
Several times in this eNewsletter we’ve discussed the importance of knowing and managing your credit score. A recent MarketWatch article emphasized the point by highlighting five types of organizations beyond creditors who use our credit scores to guide their relationship with us: employers, insurance companies, landlords, utilities, and cell phone carriers. Keeping our score high, ... [Read more]
It’s Personal
Friday, August 8th, 2008
Most of us would prefer to discuss just about anything other than our financial situation, especially when that situation includes debt. As reported by MarketWatch, a new survey found that 82 percent of people are reluctant to openly discuss their credit card debts. Further, people are more willing to talk about the personal details of ... [Read more]
The Debt Fix
Friday, August 1st, 2008
“Be joyful in hope, patient in affliction, faithful in prayer.” – Romans 12:12 For the last couple of months we’ve been going over a step-by-step plan for getting out of debt and staying out of debt forever. If you have debt, you probably didn’t get into it overnight. Getting out of debt won’t be an ... [Read more]
A Credit Score Primer
Monday, July 7th, 2008
Checking your credit report may seem about as exciting as flossing your teeth, but it’s important to your financial health. Syndicated personal finance writer Gregory Karp devoted three recent columns to the topic, reminding us of some of the basics and adding some helpful tips. The basics include making sure to order your free credit ... [Read more]
Yes, You CAN Get Out of Debt
Tuesday, July 1st, 2008
“Simply let your ‘Yes’ be ‘Yes,’ and your ‘No,’ ‘No.’” – Matthew 5:37 “Yes” is one of the most powerful words in our vocabulary. I’m not talking about the easy yes spoken to a waiter offering us dessert. I’m talking about the yes of commitment. It’s the yes spoken on an altar – “To have ... [Read more]
Cracking the Code on LifeLock
Tuesday, June 24th, 2008
By now you’ve seen the commercial in which Todd Davis gives you his Social Security number. He’s one of the founders of LifeLock, a company that offers to protect you from identity theft for a monthly fee of about $10. A New York Times article noted that while the company has lined up more than ... [Read more]
Paid in Full
Monday, June 2nd, 2008
“You were bought at a price; do not become slaves of men.” – 1 Corinthians 7:23 On a recent retreat I had the privilege of serving communion. Over and over, I looked a brother or sister in Christ in the eye and said, “This represents the body and blood of Jesus, broken and shed for ... [Read more]
Paying More With Plastic
Tuesday, May 20th, 2008
Do you pay your credit card balances in full every month? Have you been using credit cards for more of your purchases, like groceries, figuring you’re ahead of the game because of the rebates, miles, or other perks? According to researchers quoted in a Washington Post article, you’re overspending. Professors from MIT, Harvard, and Britain’s ... [Read more]
ID Theft Protection Hype and Help
Tuesday, April 8th, 2008
With identity theft much in the news, various ID theft protection services have emerged. But a recent Wall Street Journal article said most are not worth the cost. The only pay-to-play service that may be worthwhile is a credit freeze, which prevents access to your credit file. Depending on where you live, it may cost ... [Read more]
Getting Ready for Your Rebate
Wednesday, March 12th, 2008
Are you among the 130 million taxpayers who will receive a rebate as part of the government’s economic stimulus plan? (Check eligibility requirements here) If so, with the government poised to begin sending checks in May, now would be a good time to decide what you’ll do with the money. Single tax payers will receive ... [Read more]
The Warmth of Winter
Sunday, March 2nd, 2008
There is a time for everything, and a season for every activity under heaven. – Ecclesiastes 3:1 As another Chicago winter stretches on, I’ve been longing for spring. And isn’t that how it is whenever we go through a wintry financial season? We can’t wait for a better one to begin. In my mid 20’s, ... [Read more]
Motivation for Getting Out of Debt
Wednesday, January 23rd, 2008
If you carry a balance on a credit card, you probably know the helpless feeling of dutifully making the minimum payment, only to get your next statement and see how little your balance has budged. A better approach is fixing the amount that you pay each month (instead of paying the minimum amount required by ... [Read more]
Giving ID Thieves the Big Chill
Wednesday, October 10th, 2007
We will soon have a new, albeit cumbersome, weapon in the fight against identity theft. According to an article on Bankrate.com, by next month people in all 50 states will be able to freeze their credit file at all three of the major credit bureaus. Everyone already has the right to place a fraud alert ... [Read more]
