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Latest bank fee is for paying off credit card on time every month

admin — Tue, 20 Oct 2009 22:46:11 +0000

You floss regularly, yield to oncoming traffic and use your credit cards judiciously, dutifully paying off your balance every month.

You may believe that your exemplary behavior shields you from unexpected credit card fees. Sadly, that is no longer the case.

Starting next year, Bank of America will charge a small number of customers an annual fee, ranging from $29 to $99. The bank has characterized the fee as experimental. But card holders who have never carried a balance or paid late fees could be among those affected.

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Should You Pay Debt Before Saving?

admin — Thu, 17 Sep 2009 06:14:47 +0000

Should you hold off on saving until your nonmortgage debt is paid off?

Simple math suggests it’s better to get rid of debt before saving for retirement or an emergency fund. After all, if the savings rate is 1 percent and you have credit card debt at 14 percent interest, money is better spent paying down debt quickly.

“Like everything else in life, this decision is one of balance, not of absolutes,” says Michael Rubin, president of Portsmouth, N.H.-based Total Candor, a provider of financial education.But personal finance decisions are rarely so simple, and this method may not be the right choice for everybody.

Dean Barber agrees. The host of nationally syndicated talk radio program “America’s Wealth Management Show” says there are pros and cons to each approach.

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Fed: consumers cut debt by record $21.6B in July

admin — Tue, 08 Sep 2009 20:39:13 +0000

WASHINGTON – Consumers slashed their borrowing in July by the largest amount on record as job losses and uncertainty about the economic recovery prompted Americans to rein in their debt.
Economists expect consumers will continue to spend less, save more and trim debt to get household finances decimated by the recession into better shape. However, such action is a recipe for a lethargic revival, as consumer spending accounts for 70 percent of economic activity.
The Federal Reserve reported Tuesday that consumers ratcheted back their credit by a larger-than-anticipated $21.6 billion from June, the most on records dating to 1943. Economists expected credit to drop by $4 billion.
Wary consumers and hard-to-get credit both factor into the scaled-back borrowing. But economists are split on which force — lack of demand by consumers or lack of supply from banks — is having the bigger influence.
“It’s really a tug of war,” said Mark Williams, professor of finance and economics at Boston University and a former Fed bank examiner. “It’s true that consumers are being more responsible, saying ‘I don’t really need that extra credit card,’ but it is more related to banks clamping down on lending.”

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Dave Ramsey Rants On Credit Cards

admin — Fri, 16 Jan 2009 04:35:00 +0000

Tips On Lowering Your Debt

admin — Thu, 15 Jan 2009 04:43:28 +0000

What Is Good Debt And Bad Debt?

admin — Tue, 13 Jan 2009 19:44:16 +0000

Have you ever heard the phrase that some debt is better than others? While this may not make sense at all, and it is hard to believe, this is a true statement. The fact of the matter is that there is a big difference between good and bad debt. Do you know the difference? If not, you are not alone.

Good Debt

There are a couple types of good debt and the most common are student loans and a mortgage. Why are student loans considered good debt? Simply put, when you take out this type of loan you are taking steps towards bettering your life. Once you get out of school and have a degree you will be in position to secure a good job and hopefully pay back your loans sooner rather than later.

A mortgage can also be good debt. The reason for this is that you are paying for something that usually appreciates in value. To go along with this, your home is where you live. Why put money into renting a place when you are not going to get anything in return?

Bad Debt

The most common type of debt is credit card debt. Why is this the case? For one, you don’t need credit card debt. You should never pay for anything with a credit card unless you can afford to pay it back in two months at the most. If you don’t pay off your credit card bill you are going to rack up large finance charges.

Are you thinking of applying for a home equity loan? This is a bad idea in most cases. Your first mortgage can be considered good debt, but when you move into a home equity loan you are making a mistake as this is no longer a solid money move.

Now that you know some types of both good and bad debt you should be able to put yourself in a better financial position.