Credit Cards
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]
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]
Reshaped by the Recession
Tuesday, January 26th, 2010
The Great Recession has impacted all of us. For some, the impact has been painful (think job losses). But the financial downturn also seems to be fostering widespread personal changes that, if they stick, have the potential to improve our lives. U.S. News & World recently summarized some of the key recession-induced changes that researchers ... [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 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]
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]
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]
Living Well on $44k
Monday, December 22nd, 2008
How did you do on finding holiday gift deals this year? Can you beat this: 27 gifts for $90? As reported on TODAY, that’s just the latest in a long list of amazing money moves executed by Steve and Annette Economides, who have turned smart shopping into an extreme sport. The Arizona couple, along with ... [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]
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]
When Smart Shopping Becomes Disturbing
Friday, October 24th, 2008
A new study of Wal-Mart shoppers (and that’s 9 out of 10 of us) shows that the economy is reshaping how we shop. As reported by USA TODAY, Wal-Mart has seen a double-digit decline in credit card use, a noticeable shift from the sale of discretionary products to necessary products, twice as many private label ... [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]
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]
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]
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]
Cash Back for Overseas Travelers
Friday, February 22nd, 2008
If you traveled overseas between February 1, 1996 and November 8, 2006 and used a Visa-, MasterCard-, or Diners Club-branded credit or debit card, you may be owed at least $25. It’s the result of a class action lawsuit claiming that foreign-currency transaction fees were not properly disclosed. As reported by the Washington Post, the ... [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]
