Thursday, April 30, 2009

Banks are Struggling to Lend. Cash Advances Become More Popular

Cash Advances are quick

Cash advances are quickCash advances are being relied upon by consumers as they try to make it through their monthly bills. A cash advance can pay for overwhelming debt or an emergency bill because it is quick and easy. Most lending companies for these types of loans make the application process as simple as possible. If you are employed, are over 18 and have an active bank account, you can apply for the loan. The lender will look into approval and calculate ho w much you are eligible to receive. If a company ultimately approves you, your funds are deposited into your account within 48 hours, sometimes sooner.

Why not banks?

The simplicity of this type of loan is gaining momentum because normal lenders are no longer available to Americans. The recent bailout is proof that the economy is suffering and it's estimated to be over a year before citizens feel some relief from the pressure.

The condition of U.S. banks

It's been a year since U.S. banks first began having major financial issues. This year profits have been growing, which is good news, however analysts caution that it isn't completely indicative of an economy that is out of hot water. A lot of the "ups" of the banking economy translate to banks suffering the "smallest losses" they have experienced in months. So while they are doing better, they still aren't performing at the same level they were in prior years. ... click here to read the rest of the article titled "Banks are Struggling to Lend. Cash Advances Become More Popular"

Pontiac: All good things must come to an end

The internet has made the world different

Butler MobileIn the early days of the internet, I remarked to someone that the whole concept of a World Wide Web was amazing and I thought the world would never be the same once the internet was more developed. "I think that's a bit of an exaggeration," he replied. "It'll take more than that to change the world!" I wonder if he still thinks the world never changed because of the internet.

The world is about change

Now I am predicting that the world will never be the same after this recession. The world is always changing but the small changes are plastic and things return to where they were. But when there is major change, things never go back to where they were and we get used to living on some parallel course.

For instance, take Payday Loans, a concept that surely grew out of a need caused by a change in the times. From now on there will always be Payday Loans. That's change.

A world without Pontiac will be different

Here's another major change coming as a result of the recession. Remember the Pontiac, the once flagship of General Motors, the car known for its stylish sedans and sleek roadsters? Well they are about to be moved from the streets to the auto museums where our offspring can gape at them and say, "how could you drive around in a boat, Dad?" The Pontiac is one of the latest victims of General Motors’ struggle for survival.

Collateral damage

On Monday GM announced its plans for its 76th annual overhaul and service. This one will put 21,000 people out of work and bring about the death of Pontiac by the end of 2010. ... click here to read the rest of the article titled "Pontiac: All good things must come to an end"

Debt Ski Makes Managing Finances Fun

Debt ski gets you thinking

debtski2After playing a few rounds of the Debt Ski game, I can’t say I’ll suddenly be better at debt management or credit repair. But if you sit back and analyze the game, it makes a point. It factors in income, necessary spending, discretionary spending and a credit card limit.

This game is targeted at college students, so online payday loans are not an option. Debt Ski might not automatically make you better at managing your personal finances, but it makes a good point, and  it gives good common-sense advice in a fun, modern format.

The game

The Debt Ski concept was developed by 26-year-old college graduate Brian Haveri. “About this Game” on the InDebtEd.com web site explains it best:

mtvU, MTV’s college network, and the Peter G. Peterson Foundation have joined forces to launch Debt Ski, an online, flash video game which spotlights the dangers of excessive debt, challenges young people to avoid destructive financial behavior and spurs fiscally responsible action.

The main character of the game is a pig on a jet ski. Your job is to maneuver your piggy bank  in such a way that you make the right amount of necessary purchases, collect income and either avoid or collect optional items to boost your  happiness level. ... click here to read the rest of the article titled "Debt Ski Makes Managing Finances Fun"

Bank of America Raises Fees on Checking Accounts

I recently received a pamphlet about the “improvements” that Bank of America is making on several of their checking accounts. But after reading through it, all I see are a bunch of small fee increases.

For example, many people have the MyAccess checking with no minimum balance requirement and no direct deposit requirement. Now, the monthly fee is either $8.95 or you need a direct deposit. And you can now be dinged by the $35 overdraft fee up to 10 times in one day. You can see all the pricing changes outlined here.

I guess they need to drum up some more money somehow, and most of the fees are still avoidable. But given that around 27% of their revenue comes from fees, and that there were $36.7 billion of overdraft charges by banks last year, I really think this is another reason banks are pushing their debit cards so much. Not only do they earn transaction fees, it makes it that much more likely that people rack up more overdraft fees. Imagine this: You lose track of your balance once, but make 5 small purchases over two days before realizing. That’ll be $165, please!

Be careful out there… those “free” checking accounts have to be paid for somehow.

Read more about Bank of America Raises Fees on Checking Accounts…



Chrysler Bankruptcy Sets Stage for Court War

Down goes Chrysler

America’s big automakers have all been in serious need of cash advance loans and debt relief for some time now. Overproduction of consumer vehicles that burn through gasoline and take up too much room on the country’s current highway system has been the byproduct of poor planning by top automobile executives. Now the time has come for them to reap what they have sown.

Unfortunately, this means that many honest, hard-working employees are losing their jobs, thanks to the economic corpulence of those who may never have known what it truly means to struggle to survive. This time, there’s no bailout: Chrysler has bankruptcy on their minds. Chapter 11 bankruptcy.

Average taxpayers may get nothing

Following the trail of Chrysler news, Michael de la Merced blogs for the New York Times that the restructuring battle has changed locales, from board rooms to bankruptcy court. Chrysler and the Obama administration did not obtain the consent they needed from secured lenders, so Chrysler is bankrupt. ... click here to read the rest of the article titled "Chrysler Bankruptcy Sets Stage for Court War"

Repair Your Credit | How You're Judged (Pt. 4)

How credit agencies view you (conclusion)

Welcome back. You’ve made it to the very end of “Repair Your Credit,” and let’s keep going to the end by taking a continued look at what credit agencies look at when they produce a credit score for you. That score determines how likely you are to get a good deal on a credit card, but typically has no bearing on whether or not you can be approved to receive a payday cash advance loan.

***

  • What are your spending habits?

How you use your credit is also a criteria examined by the credit bureaus when they develop your credit score. When looking at your credit accounts and account balances, they are able to determine just how conservative you are as a consumer spender. If your credit lines are maxed out or close to your available credit limit, you would be considered much more of a risk.

In contrast, avoiding a revolving credit balance by paying your consumer credit cards off at the end of each month or billing period will show you to be a far more conservative spender and therefore less of a risk to lenders. Just because you make your payments on time does not mean you automatically have good credit. Your spending habits can come back to bite you in more ways than one. ... click here to read the rest of the article titled "Repair Your Credit | How You're Judged (Pt. 4)"

The Secrets of Financial Freedom: An Interview with the Millionaire Next Door

Today is the last day of Financial Literacy Month. To tie everything together, I thought it would be fun to share an interview my real millionaire next door, a man we’ll call John. He used the basic tenets of money management to build wealth and to retire early. Here’s how I described John when I first wrote about him last year:

John is a 71-year-old retired shop teacher who lives in a modest ranch house on half an acre, the same house he's had for over forty years. He has an old barn filled with salvaged lumber, outdated appliances, and who knows what else. When he's around, he drives a junkie 25-year-old station wagon. But most of the time, he's not around.

He spends his winters in New Zealand helping friends on a dairy farm. His summers are spent fishing in Alaska. For a couple of months each year, he's home, puttering in the yard. Year-round, he rents his house to boarders. He leads a very active retirement.

John’s story was popular with Get Rich Slowly readers, and many of you asked me to interview him. I had to wait for him to return from New Zealand, but earlier this month, the opportunity finally presented itself. John agreed to sit down for a chat.

“I want to take you to lunch at the Chinese place up the street,” I told him.

“What the hell for?” he asked.

“Just to be nice,” I said. “To thank you for taking the time to speak with me.”

“I don’t need that,” he said. “Save your money. Let’s just sit at your dinner table.” And so we did.

In the beginning
Before John left for New Zealand just after Christmas, I mentioned the idea of an interview. He liked the notion, so on his flight home at the end of March, he made some notes about his financial philosophy. “These are my secrets to financial freedom,” he told me, showing me what he had jotted on the back of an envelope. “This is what I did to get where I am today.”

“I’m ready,” I said. I had a yellow legal pad and a Bic pen. I motioned for him to continue.

“It was interesting to do this,” John said. “It’s really the story of your web site. The real secret is to spend less than you earn. I don’t care how much you earn, you spend less than you earn.”

I laughed. “My readers aren’t going to like that,” I said. “There’s a vocal group that complains that personal finance writers are always preaching ’spend less than you earn’.”

“It’s not funny,” John said. “Because that’s the secret. They don’t have to like it, they just have to do it.”

“Right,” I said. “There are no magic bullets. There are no special shortcuts. Now, before we get started, can you tell us a little bit about your background?”

“Well, I’m retired,” John said. “I’m 72 years old. I spent twenty years as a shop teacher at a junior high school. I retired at 58. Before that, I did other things. I worked as a carpenter for eight years, and I spent six or seven years working in the juvenile court system.”

“Did you have good financial habits growing up?” I asked.

“Yeah, I really did. My family had a lot of money. We owned a big hardware store. But I saw money wasn’t the key to happiness. There were other families that were happier that had far less. But I’m grateful for having grown up with a solid financial background.”

On frugality
“What advice do you have for people who want to spend less?” I asked.

“Well, I made this list,” John said, pointing to his old envelope. “I listed all of the things I do. First of all, people should learn what a kilowatt hour is. A kilowatt hour is a thousand watts burned for an hour. All of these appliances left on standby draw power. And don’t leave your lights on.” John gave me a look.

I was sheepish. The lights were on in the bathroom and the kitchen, but we were sitting in the dining room. I got up to turn them off while he continued speaking.

“Learn to figure your own power bill and know why it is what it is. People should learn about electrical use. That’s a drain on your monthly budget. Every penny saved on electricity is a penny you can use for something else.”

“No smoking or alcohol consumption,” he continued. “This has nothing to do with morals and health — okay, maybe health — it’s all about the money. I see people with a cigarette in their mouth, and I think, ‘That’s 25 cents!’” I laughed.

“Don’t have a credit card without autopay. And if you have a credit card, you should benefit from it. I use a credit card for everything I can, but I get things back from that.”

“Like air miles?” I asked.

“Exactly,” John said. “Air miles or a cash rebate. And I have my bank automatically pay the bill every month.”

“Next is food,” he said. “I think people’s eating habits are hell-bent on spending money.”

“Yeah,” I said. “I offered to take you to lunch while we talked.”

“I know, but I don’t need that gesture. I appreciate it, but that’s money that could be spent on other things. Like your new car!

“You don’t have to spend a lot on food,” John continued. “When I go to the grocery store — which is rarely — I don’t know how anyone could afford to feed a family on that stuff. It seems outrageously expensive. People need to learn to cook from raw ingredients.

“But where do you get the raw ingredients?” I asked.

“From the farmers market! Or Costco! You don’t need the little individual servings. That’s crazy. You have to be creative. Part of the problem is that you need to buy a freezer. Or look,” he said, waving his hand at Kris’ seedlings. “Over there are your tomato starts. Those cost you what? 50 cents? You’ll get 50 dollars of fruit from those! Plus I buy what I can in bulk.”

“Eating in-season food is important. It’s less expensive and it’s better quality. I also like this eating close to home thing. That’s neat.”

“Kris makes her own granola,” I offered.

“Yeah,” he said. “Exactly. But nobody advertises that. Nobody advertises ‘make your own granola’. Again, it makes sense to own a freezer. The electrical use of a freezer is pretty tiny. That’d be an interesting article for you, J.D. How much electricity does a freezer use versus how much you save by buying in bulk? People don’t understand about electrical use. They have a foggy notion about it.”

“Yeah, I have this device called a Kill-a-Watt,” I said. “It measures electricity use. But I’ve never checked our freezer.”

“Here’s another thing,” John said. “It’s okay to buy used. There’s nobody advertising to be thrifty. There’s nobody advertising to go to Goodwill. That’s not where the profit is. People have to get permission to buy used from somewhere else, because they’re not going to get it from advertising. I buy all sorts of stuff used, but especially cars. I bought my minivan off Craigslist.”

“How did that work?” I asked.

“It worked great,” John said.

“I bought my Mini Cooper used,” I said, “but I didn’t do it as well as I could have. I didn’t take it to a mechanic, for example.”

“I took my car to two mechanics. I wanted to be sure.”

He rattled off a few more tips. “Do your own home repairs. Use the library more — movies and books, and it’s totally free. I think that’s great. Remember: A dollar spent will never produce dividends. Money spent is gone and will never earn you anything.”

On investing
“That’s a good transition,” I said. “Let’s talk about your approach to investing.”

“I advise people to look for good investments. Take some time to do research. And think outside the box. I just re-opened my account with Reliable Credit. They offer 4%, which keeps up with inflation.” Reliable Credit is a nearby consumer finance company. But it’s not a bank. They take deposits from people like John and they loan them to high-risk clients. They do a lot of used car loans.

“The thing that worries me about Reliable Credit is that they’re not insured. There’s no FDIC insurance,” I said.

“Doesn’t bother me,” John said. “I’m not putting a whole lot in there. It’s just part of my money.”

“What would happen if you lost it all?”

“Not a big deal. I own my home. I have a guaranteed pension. I have no debt. That’s the key. Because I’ve done these other things, I can afford to take some risk. A lot of people can’t.”

“What about your other investments?” I asked.

“If you’re going to do stocks, diversify your stock holdings,” John said. “But for me, no-load mutual funds are the only way to go. To give anybody 3-4% of your money off the top is insane. It used to be I wasn’t aware how much I was paying. Once I figured it out, I thought, ‘Shit, I can make these mistakes myself. Why should I pay anybody to do it for me?’”

“I invested in small-cap funds at Columbia here in Portland. What a great move that was. Those did very well. I tracked their growth in the newspaper. Every week I drew a graph. I plotted the weekly high and the low and where it closed. I had to keep making new pages for my records because it was growing so much. I didn’t mind,” he said, laughing. “Back in the olden days, if I wasn’t getting 20% a year, I looked someplace else. But I can’t hold that up as an example — although it may happen again if things get turned around, once this economy corrects itself.”

“Does this economy worry you?” I asked.

“No. I don’t have to worry about it. I don’t need the income. I’m debt-free. If I was retired and had a mortgage or other debt, or if I had health problems, it would worry me. To my mind, even if you invest and it goes to hell, it’s still better than nothing. The odds of that are pretty slim, though, especially if you diversify.”

“What are your financial goals?” I asked.

“I used to say that when I reached $100,000 I would have arrived. But I got there so fast, I just kept going. Some people plan for retirement, but I didn’t plan. I did go to investment workshops — free workshops — that were put on for the teachers, and I learned from them. You’d be surprised at how few people showed up to them. Nobody cared.”

“When did you start to save?” I asked.

“It must have been 30 or 35 years ago,” John said. “And I’m glad I did. I think there are people who still don’t take advantage of tax-advantaged savings and investments accounts. I did this as soon as I could. I was amazed at how many teachers didn’t take advantage of this. That’s crazy.”

On choosing a lifestyle
John looked back down at his list. “Here’s another thing,” he said. “Volunteer to help others. I really think that’s an important personal lifestyle choice. It feels good to me. I used to do scouting. I had a Boy Scout troop for fifteen years.”

“You know, scouting was important for me when I was a boy,” I said. “I think it can be a great experience.”

“Sure it can,” John said. “When I was growing up, a lot of people shared things with me. It feels good to be in a place to be able to share myself now.”

“What kind of things do you share?”

“Well you know I rent the house, but it’s basically at cost. I don’t charge much at all. I host guests on my boat [in Alaska] at no charge. I do my work in New Zealand. Earlier today I picked up some sheet metal. I went and bought some scrap sheet metal and I took it in to Franklin High School. I took it to their metal shop. They can really make use of that.”

“What do you splurge on?” I asked. I’ve seen the things John owns. They’re very functional. He doesn’t have a lot that I would consider “fun”.

“Some people would say that buying a boat is a splurge,” he said. “But I bought that boat right. I bought it for less than market value. I’ve taken care of it. I’ll get a lot more use out of it.”

“I guess I could eliminate a couple thousand dollars airfare getting to New Zealand and back, but I spend very little money when I get there. If I spend a couple hundred dollars in New Zealand, I’d be surprised.”

“How do you keep your costs so low there?”

“I work on farms. I’m part of Willing Workers on Organic Farms. You travel to someplace and do work on their farms for them. They provide room and board. Sometimes they take you to do local stuff. This year I got to see sheepdog trials. That was fun. Anyhow, I do carpentry work. I build stuff and fix things. There are four farms I go to, about three weeks at a time, and I do what needs done.”

He paused for a moment and smiled. “But Alaska is just for fun.”

“How long have you been doing this now?”

“I’ve been doing this for about fifteen years, ever since I was retired. Back when I was 58.”

Reader questions
We’d come to the end of John’s list, but we weren’t finished yet. “I told some of my readers that I was going to interview you,” I said. “They sent in some questions. Would you be willing to answer them?”

“Sure. Of course.”

“Annie Blue wants to know how money affects your daily happiness.”

“Well,” he said. “I can buy whatever I want. Not need, but want. I just don’t want very much. I always have $100 in my pocket, but I don’t piss it away. I don’t stop for coffee. I seldom eat out.”

“I understand why people buy things,” he said, “I like to buy things, too. There’s a certain satisfaction in looking at the things you’ve accumulated. It’s like an affirmation that you’re doing things right. So you surround yourself with things that make you think you’re doing well — but they’re not necessary. That’s one of the advantages of being older. People just leave you alone to do what you want.”

“Next,” I said, “Suburban Dollar wants to know what advice you’d give to a 30-year-old.”

“Spend less than you earn. This is true whether you’re on welfare or a millionaire. And remember: wealth is created by investing money, not by working longer and harder.”

“Here’s another thing,” he said. “Remember that when you’re raising kids and stuff, that’s really hard. The demands on your money are so great. But you’ve got to be willing to say no. So much money is pissed away to keep kids happy.” (John has grown children. He’s speaking from experience.)

“Here’s a final question from Bill in Detroit,” I said. “He wants to know if outer wealth causes inner wealth. Or is it the other way around? Or are they completely disconnected?”

“There’s a lot of personal power from personal spending,” John said. “If I’m feeling down in the dumps, going out and buying something gives me a lift. But I’m aware of that. I’m aware of how it makes me feel and it helps me to not do it.”

“I think it all has to do with how you feel about yourself,” John said. “I learned long ago that it was okay to spend less than I earned. It wasn’t going to kill me. And I learned that by doing so, I felt really good about myself. I still do. I’m happy. I feel really comfortable.”

I thanked John for answering my questions, and we walked out to look at the vegetable garden. He admired our onions and peas and asparagus. We discussed whether it was time to rototill. At last, we shook hands and said our farewells. I was headed to California in the morning, and he was off to Alaska. He’ll be there until about the time his grapes are ready to harvest in September. I’ll miss him while he’s gone. But if I’m lucky, I just might get to spend a week with him on his boat this summer, catching a glimpse of what early retirement is like.


Related Articles at Get Rich Slowly:



Read more about The Secrets of Financial Freedom: An Interview with the Millionaire Next Door…



Tuesday, April 28, 2009

Bacon is one of the tastiest foods ever made

Even though it is made from the fatty part of a pig, it sure tastes good. I love waking up to the sizzling sound of bacon cooking in the morning and the aroma of it spreading its way through my home. One thing I've noticed about the smell of bacon, it takes hours for it to leave, good thing it smells wonderful. Bacon is best when it's cooked just enough so it's only slightly crispy. It can't be too crispy or else it loses most of its flavor and it can't be too uncooked or else it tastes too fatty. If cooked just right, bacon can taste wonderful and literally melt in your mouth.



New Moon

I am so excited for the movie New Moon to come out in November. It looks like it's going to be so much better than its prequel Twilight. Twilight was pretty decent but it was really low budget and has some really corny acting and action sequences. It looks like they made enough money off of Twilight that they can spend more time with New Moon. I really hope that they spend enough time developing the relationship between Bella and Jacob and not rush through the movie till Edward comes back. It's an amazing book and I really hope the director stays as true to it as possible.



Relaxing by the fire

I was sitting by my fireplace the other night and I decided that I really like fire. Fire is really hypnotizing and relaxing to watch. I love sitting there watching the flames dance and listening to the wood crackle. It's amazing at how many different colors there are in the flames of a fire. Not only are the flames different colors but fire can create different smoke colors depending on what it's burning. There's nothing better than relaxing by a fire at night with your family while camping with your family or staying warm by your own personal hearth during a cold winter. Every home should have a fireplace.



Belly Buttons

Belly Buttons are the best thing that happened to mankind. They can be two different types, innies and outies. They are so fascinating. When poked, they can tickle a person. Whenever I poke my nieces or nephews in their belly button, they always giggle. The weirdest thing is that they have no use to us once we leave the womb. It is almost as if they are a permanent scar. They should in theory heal over. I am pretty sure that I am going to now refer to my belly button as a permanent scar. It seems to me like that is the case.



How To Develop Six Pack Abs?

Proper techniques should be followed while doing abs exercises because this is very important and it will determine the effectiveness of your abs workout. There are two intermediate exercises that will help you in developing abs and when you are performing these exercises you must take care of these techniques.

  • Abdominal Crunch: - Abdominal crunch is great for training the upper abs. The ball is used to keep your body locked in position which forces the upper abs to lift your body up towards your knees which helps in developing abs.
  • Medicine ball abdominal exercise: - This exercise is good for both upper and lower abs. For doing this exercise a good lower back strength is needed for doing this exercise.properly.

Getting six pack abs can be acheived in regular workout. For developing six abs the exercises are very basic, systematized and effective if you are diligent in your training. Developing six pack abs involves building muscles in lower abdomen and losing excess fat.

When you are doing crunches, the usual misconception is to lift your entire back, to fully develop the abs in your stomach.But this may cause lot of damage to certain parts of your back and spine. Another secret for developing abs is to seriously commit yourself to your exercise routine.

First you have to see that getting six pack abs requires dedication, effort and willpower on your part. For getting the abs you want, you have to work hard. You have to find an exercise program that will target the development of strong abdominal muscles along with losing your stomach fat fast. This way you will get the six pack abs you desire.

You must be consistent in eating the right diet and engaging in your daily exercises. In doing your exercises to get fast abs you should breathe correctly. There is proper way of inhaling, breathing and exhaling. While doing the abs exercise you should feel burning sensation in your abdominal muscles.

The key to developing six pack abs is to reveal your abdominal muscles by following basic principles which can help you shed those extra layers of unwanted fat. You will not be able to develop six pack abs by sitting on the couch in front of the television.

It is recommended that cardio workouts are added to your exercise routine. Cardio workouts can be anything from swimming, cycling, running, skipping or fast pace walking. By doing cardio workouts, it will help in burning the fat and will have better and faster results.



Arlen Specter Switches Political Parties

I was a Democrat before I became a Democrat

A major shift in political power has occurred on Tuesday, April 28. Conservatives in the Republican party look upon the shift with scorn, but Democrats are welcoming the change with open arms. They should - their ability to slam legislation through the Senate could be within reach. Good things for liberals, not so good for those

Jacob Heilbrunn reports for The Huffington Post that one of President Obama’s biggest accomplishments thus far could be Senator Arlen Specter’s defection from the Republican Party to the Democratic Party. Does this mean he will support the president’s plan to overregulate no fax cash advance and installment loans?

Oh what a relief it is

How much of a success Specter the Democrat will be to the anti-filibuster movement will depend upon whether Al Franken wins his court challenge in Minnesota and comes to join as the 60th Democratic senator. With 60 votes in the Senate, the Democrats will be completely unstoppable against the Republican minority.

Now, Specter’s move may not be based on ideals as he would have us believe. In politics, it doesn’t matter if you’re a liberal, conservative or somewhere in the middle. The bulk of your actions are padding your back in some way. And Specter wants to be reelected. He won’t be if he remains with the Republican Party, so this is a fortuitous move for him. ... click here to read the rest of the article titled "Arlen Specter Switches Political Parties"

Monday, April 27, 2009

Repair Your Credit | Avoid the Minimum Payment (Pt. 2)

Like I said last time…

Welcome back to “Repair Your Credit.” CLICK HERE if you missed part one of this article. You’re here because

…enough is enough!

Believe me, I’ve been there. I have receipts from quick payday loans and debt relief to show for it. One day you will awaken to find that all you are able to pay to your creditors is the minimum payments. You simply can’t do anything more, which is unfortunate, because as I’ve already mentioned in this E-book, paying the minimum is the longest, most expensive possible path to take and still be able to pay off an account. If you’re OK with it taking years longer (and costing you much more than the credit you originally used), then paying the minimum is your speed. You shouldn’t go there, however.

Minimum payments are subtle, enticing and ultimately dangerous. They are financial time bombs that will leave your money in disarray if you lean upon them. They may seem convenient and affordable, but they are neither one of those things in the long run.

But they’re convenient for someone!

That’s right - for your creditors. It’s convenient for them because your paying the minimum only amounts to a cash machine in their employ. If you have a $1,000 debt, an interest rate of 18 percent and a two-and-one-half percent minimum monthly charge on your balance, paying it all off by only making minimum payments would take you 13 years. Again, I’ve mentioned this before. You need to know how much damage you can do to your finances with simple decisions. ... click here to read the rest of the article titled "Repair Your Credit | Avoid the Minimum Payment (Pt. 2)"

Housing Construction Decline and Installment Loans

Installment loans

New HouseInstallment loans are a norm in today's economy. They are no longer being used as emergency funds, but rather moving into the category of reliable sourcing for cash to pay bills. Looking at the economic climate, businesses understand that it's imperative to find alternative ways of making payments and stretching budgets. The standard ways of procuring funds is not always available because of the serious recession.

Housing construction hits second lowest level in history

The housing slump has not ended yet. In March housing construction fell 10.8%, the next to lowest it has ever been in a recorded 50-year history. Housing issues are a major contributor to the recession and without a marked improvement, we can expect the recession to last quite a while longer. Reports from the Department of Commerce show that applications for building permits, including commercial, single-family and multifamily, were well beneath economists' projections. In March, only 510,000 units applied for construction and what's worse, January's applications were only 488,000. There was a rise, however it's nowhere near the normal average for construction in the spring.

The low level of new housing is one example of proof that the recession is far from over. In addition, jobless claims are up to 6 million for the first time. Analysts predict that employment will remain weak for the remainder of the year because businesses are finding it hard to factor hiring new workers into their financial structure. In fact, most businesses are downsizing to make their own budgets work. They are also cutting discretionary expenses and asking employees to take voluntary days off. These tactics are indicative of how severe the struggle to stay afloat is. ... click here to read the rest of the article titled "Housing Construction Decline and Installment Loans"

Avoid Credit Card Confusion by Paying Attention

The restaurant warning

Don't get in trouble over a careless mistake.

Don't get in trouble over a careless mistake.

Restaurants create an unusual scenario for credit card users. In most situations — retail stores, fast-foot places and salons — your credit card never leaves your sight. You hand over the card, watch the employee run it, and it’s returned. There’s no chance of your card getting mixed up with some else’s.

But at restaurants, after you sit down to dinner and then request your bill, the server walks away with your card. It’s out of your sight until the server returns later. It’s not surprising that with all the different cards being shuffled around in restaurants, every once in a while cards get mixed up.

Alfred’s story

I read a story online recently about a family who this actually happened to. A man who went by “Alfred” in a letter reported that he and his family went out to lunch in Maui. It was one of their favorite spots. Just as he’d done many times before, Alfred gave his card to the server, waited patiently for the server’s return, signed the check and put his card back into his wallet.

This man could be considered lucky because he is one of those people who keeps receipts and files them. As he was filing the receipt that night, he noticed an item his family hadn’t ordered on the bill. Upon further scrutiny, he realized the whole check was wrong. He checked in his wallet, and sure enough he not only had someone else’s lunch bill, he had someone else’s credit card. ... click here to read the rest of the article titled "Avoid Credit Card Confusion by Paying Attention"

CDC Warns Swine Flu Epidemic Can Be Deadly

Wash your hands - please!

Good hygiene habits are always important, even more so when you are around others with contagious illnesses. Whether you are at home, school, work or out in public, the opportunities to contract a communicable disease are many. This is particularly true with the recent outbreak of swine flu the CDC (Center For Disease Control at cdc.gov) has taken action against. It has been classified as a public health emergency, so wash your hands regularly and, if you know you’re going to be around people you have been exposed, make sure they’re wearing a face mask. It’s common courtesy and it’s safe.

Steven Reinberg reports for Healthfinder that the swine flu site at cdc.gov states that not only have they declared a public health emergency, but that the European Union has advised its citizens against “nonessential travel to the United States or Mexico.” That has caused fuel, transportation and other tourism-related stocks to plummet on Wall Street, but drug stocks like those of Novavax (NVAX) are up as treatments are sought. Remember, personal loans and installment loans are there if your wallet needs help between paychecks and medical bills. ... click here to read the rest of the article titled "CDC Warns Swine Flu Epidemic Can Be Deadly"

Sunday, April 26, 2009

Congress Tackles Credit Card Debt

This week, Congress will vote on a Credit Card Holders’ Bill of Rights — and last week, President Obama met with the heads of card companies, signaling support for the bill. Host Jacki Lyden checks in with some of these credit card holders and debunks the idea that credit card defaults are the next bubble to burst.

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Podcast: Recession Tips and Shrinking Your Bills

It’s finally here! Welcome to the first edition of the Consumerism Commentary Podcast. Today Tom and I discussion tips for surviving financially through an economic and personal recession. The feature, however, is Tom’s interview with Peter Pham, the CEO of price fighting service BillShrink.

To listen, use the player above (Adobe Flash required), download the podcast here, subscribe to the podcast RSS feed, or use the iTunes link.

[00:00] Introduction, surviving financially through a recession
[18:19] Interview with Peter Pham
[26:45] End

Members of the email newsletter might recognize the discussion with Tom and myself as an edited version of the interview shared in the exclusive “pilot episode” of the podcast.

If you have suggestions for the next edition of the Consumerism Commentary Podcast, or reactions to these interviews, feel free to leave a comment here or email your thoughts to podcast at this domain name.

Receive exclusive articles, tips and chances in future giveaways by signing up for the weekly Consumerism Commentary email newsletter.

Podcast: Recession Tips and Shrinking Your Bills


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Saturday, April 25, 2009

The Lure of SkyMall

For me, the best personal finance lessons are the ones I learn first-hand. When I actually experience something, I get a lot more out of it than simply by reading about it.

Last week I flew to San Francisco. To kill time on the early morning flight, I browsed the SkyMall catalog. Big mistake. There’s some cool stuff in there — cool stuff that I don’t actually need. Before I knew it, I was dog-earing pages for things like:

And, of course, the piece de resistance: the Arcade Legends full-sized 100-game system, which features dozens of my childhood favorites like Asteroids, Centipede, Tempest, Berserk, and Missile Command. I was giving serious consideration to this $3700 monstrosity before I realized what an idiot I was being.

It sometimes frustrates me that I’m tempted by gadgets and toys still. I want not to care. I want to be able to walk into a store or browse through a catalog and not find myself longing for things I know I do not need. Fortunately, I’m usually able to remind myself of my goals. And none of my goals involve owning an Arcade Legends video game machine.

I put away the SkyMall catalog and I read a book instead.


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Friday, April 24, 2009

I Can’t Pay My Student Loans

The good news: Yes, you can!

Opportunity rich, cash poor, deeply in debt

graduates

New college graduates are opportunity rich. But most are unemployed and so cash poor they can’t even get a small payday loan.  Many are up to their ears in debt before opportunity begins to materialize.

But when it comes to student loan repayment, lenders know who their borrowers are. If you're worried about your student loans, the first thing you should do is call the Default Prevention Department of American Education Services (1-800-328-0355). They can help you even if you haven't missed a payment yet.

Repayment options to meet your needs

There are several alternative payment programs for student loans. Depending on how far behind you are in your payments, you may be able to stretch them out over a longer period and structure them to increase as your income increases. You can also defer payments of principal for a period of time.

blue-phoneYou can sometimes obtain a forbearance with reduced payments, an extended repayment time, or a temporary cessation of payments until your career and financial circumstances improve. If you have several student loans, you can consolidate them into one loan and spread the payments over a longer period of time at a lower interest rate. In some circumstances, you may even be entitled to forgiveness of a portion of your debt. ... click here to read the rest of the article titled "I Can't Pay My Student Loans"

Susan Boyle Invests in Her Appearance

Susan sports a little style

BRITAIN BOYLEThe Internet is all abuzz with news of Susan Boyle’s makeover. After the initial eyerolling and laughter when she first walked on the “Britain’s Got Talent” stage, Susan Boyle endeared herself to viewers the world over with her amazing voice.

Now, after weeks of articles that contain adjectives such as “dowdy,” “homely” and “frumpy,” she has gotten a minor makeover.

Yes, of course we saw it coming

Celebrities sink millions into their appearances on a regular basis.  “American Idol” contestants and other characters catapulted to reality_TV fame get very expensive makeovers once they’re in the limelight.

The blogosphere is filled with people spouting “I knew it!” and “inevitable.” Turns out, Susan Boyle’s makeover wasn’t really much of a makeover. And it certainly didn’t cost as much as a “normal” celebrity makeover.

A small investment

Even though Boyle hasn’t made a big chunk of change off her instant fame yet, I don’t think she needed to take out personal loans to complete her new look. E! Online reports that Boyle went to the same salon she always goes to for her haircut and color, which cost a grand total of $51.

She’s been spotted sporting a shiny, black jacket. Turns out, she’s not wearing an expensive leather coat. It’s a $23 knockoff from a discount clothing chain. The Huffington Post reports that Boyle’s makeover includes wearing designer clothing, but I am skeptical of that claim — especially because the Huffington Post says her jacket is leather. ... click here to read the rest of the article titled "Susan Boyle Invests in Her Appearance"

Thursday, April 23, 2009

Direct Deposit and Payday Loans

Direct Deposit Payday loans offer a number of features to the consumer

franklin friday

  1. The application process is quick and effortless;
  2. There are typically no credit checks (i.e., you are not put through the "harrowing" experience of submitting your bank statement in order to receive an approval);
  3. The Payday loan lender will not ask for specific employment references for verification in order to qualify you for the payday loan;
  4. Repayment of the loan is a very simple process.

In order to qualify for a Direct Deposit Payday loan three items are usually essential

  1. You will need a checking account that is active;
  2. You need to be at least eighteen years of age; and,
  3. You will need current contact information.

Of course these are general requirements and other requirements may be necessary with regard to the (individual) lender. Direct deposit payday loans are limited as to the amount you may borrow. Keep in mind the range you may borrow with regard to a direct deposit payday loan is typically between $500 and $1,500. The period of the loan usually extends from a two week to a four week period.

The direct deposit payday loan is the ideal solution with regard to the following circumstances:

  1. Short-term emergencies when cash is not readily available; and,
  2. When you are between paychecks, yet gainfully employed.

Therefore, if you need emergency cash and are able to fulfill the terms of a payday loan agreement, all that is necessary is for you to apply online or over the phone. The process of application is simple and convenient and usually takes a matter of a few minutes. ... click here to read the rest of the article titled "Direct Deposit and Payday Loans"

Depeche Mode to Play Free Concert on Hollywood Boulevard

Head for Hollywood

signSaving money on entertainment usually means watching unknown bands in dive bars — but not tonight. World class band Depeche Mode will play a free concert on Hollywood Boulevard tonight to promote their new album “Sounds of the Universe.”

No money? No problem

It’s true, you won’t need cash advance payday loans or cash of any kind to get into this show, which will shut down a section of the famous boulevard for several blocks. Fans of the British band are used to paying top dollar for the honor of seeing Depeche Mode live. In fact, if you want to see them at upcoming music festival Lollapalooza, you’ll have to shell out at least $190.

Tickets to Depeche Mode’s Madison Square Garden show in August start at $50 for the nosebleed section and go up to $130. This free concert is a rare and wonderful opportunity.

Why so generous?

Though Depeche Mode lovers will be able to attend the show for free, that doesn’t mean the band isn’t getting paid. Besides promoting the album, Depeche Mode will be playing near the under-construction W Hotel complex. The project cost a whopping $350 million, so developers are hoping to get some attention.

More show info

Depeche Mode’s free concert is tonight on Hollywood Boulevard and Vine. You can pick up free tickets if you want to be able to get close to the stage, or just show up and enjoy.

About the band

Depeche Mode started in England in 1980. Wikipedia calls Depeche Mode “one of the longest-lived, most successful and influential bands to have emerged from the New Wave era.” Electric and Musical Industries Ltd. reports that Depeche Mode has sold more than 75 million albums. I guess that explains why they can afford to play a free concert. ... click here to read the rest of the article titled "Depeche Mode to Play Free Concert on Hollywood Boulevard"

What Should I Do? | Bankruptcy

money-and-stress-2These are tough financial times

You may be facing insurmountable debt, the danger of losing your home or car, and continual harassment from debt collectors. Your struggles may be compounded by divorce, the loss of a job, uninsured medical expenses, or a combination of unexpected events. If you are in extreme financial distress, a quick payday loan clearly is not going to go the distance. You've considered various debt-relief options, and you know you need to do something.

Is bankruptcy the answer?

The two most common types of bankruptcy for individuals are Chapter 7 (where you can get rid of certain types of debts altogether) and Chapter 11 (where you can pay all or, more frequently, a portion of your debts according to a court-approved payment plan). To file under Chapter 7, your average monthly income for the six months immediately preceding the bankruptcy filing must not exceed the median income in your state. Alternatively, you may file under Chapter 7 if your income is insufficient (after subtracting certain expenses for basic necessities) to repay any part of your debts.

bankruptcy-road-sign2Ask an attorney

Determining whether you are a candidate for bankruptcy and whether filing for bankruptcy would be in your best interest requires in-depth legal analysis. Before you make a decision, be sure to get legal advice from an experienced and reputable bankruptcy attorney. ... click here to read the rest of the article titled "What Should I Do? | Bankruptcy"

Temporary GM Shutdown Could Be Imminent

Company plans for slow summer

GMAs General Motors faces the possibility of bankruptcy, the company says there may be a nine-week GM shutdown starting as soon as next month.

The automaker might close down several plants for nine weeks. An overabundance of inventory plus typically slow summer sales are causing GM to consider ceasing production for a couple of months.

Not very hush hush

Sources who have talked to newspapers regarding the imminent GM shutdown has asked to remain anonymous because GM workers haven’t been told about the shutdown yet.

Thousands of workers will be laid off if the GM shutdown goes through. however, the employees won’t miss out on much pay. The United Auto Workers union is required to make up most of the difference in salary between GM paychecks and unemployment insurance. So for the nine weeks that production is halted GM workers should be able to get by without payday loans or credit cards.

Summer slowdown

Usually GM shuts down most of its plants for about two weeks during the summer. Plants stop operating in between switching over to building new models. The GM shutdown this year would occur around the same time, it would just be longer.

Outside GM

GM is hoping that an extended shutdown will help reduce the growing stockpile of vehicles it has at the moment. However, auto parts makers could stand to lose a lot of critical revenue if the country’s largest automaker ceases production for nine weeks.

“It’s one of those things we’ve been dreading for a long time,” said Jim Gillette, director of financial services at auto-industry consultant CSM Worldwide in Grand Rapids. “It’s as bad as its ever been.” ... click here to read the rest of the article titled "Temporary GM Shutdown Could Be Imminent"

What Drives You to Be Frugal

People who know me sometimes wonder why I’m so frugal. They question why I don’t seem to eat out. They can’t understand why I rather watch a movie at home than go to the movie theaters and they certainly don’t feel that I’m actually enjoying life. They, like most people, are simply failing to look at my life from my point of view.

Frugal Living Isn’t Just About Cutting Down

Many people may feel that being frugal is about having and doing less but it’s really about doing more with what you already have. It may seem weird to some that not getting something is actually good but there’s true happiness when you don’t feel the need to buy.

My parents used to tell me that they made up all these wonderful paper based games because they didn’t have the money to buy anything else. Nowadays, we not only need video consoles, we won’t be satisfied until they have an Xbox 360, PS3, Wii and a Nintendo DS. You would think that having one console would make us happier than not having any, but we actually feel worst. You may have four machines plugged into your TV, but you can only play one game at a time (I’ve seen some amazing stuff with kids playing video games, but I have yet to see them play more than one game concurrently). It’s not what we have. It’s how we feel about what we have that matters.

True frugal living to me is:

  • Enjoying what you have instead of what you can’t get
  • Detaching Yourself from Lure of Consumerism
  • Learning that Happiness Comes from Within

I’m not totally immune to consumerism. I go out to dinner, buy new gadgets and go on vacations as well. It’s just that I don’t see the need to do it as often as everyone else. I rarely feel unhappy about not buying, because I already buy a huge majority of what I want. I’m detaching myself from needing “things” to make me happy. For all those who care, this is good for me, not bad.

I’m not frugal because there’s a need.  Rather, there’s no need for me to spend. How about you?  Why are you frugal?


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Wednesday, April 22, 2009

Neenah Pickett Wants a Husband in 52 Weeks | Got Game?

The ol’ online date and hitch

Your budget is a microcosm of your life. I know that’s a scary prospect for many people, considering how often they may use no fax payday loans and credit repair to keep the boat afloat. Setting goals to put your ducks in a row is important when it comes to your money, and it is even more important when it comes to success in your personal life. If you’re anything like Neenah Pickett, 43, you may just have the wherewithal to find a mate online and marry. She set a goal to find a husband in 52 weeks.

Jessica Ravitz reports for CNN that Pickett’s mission of amour is being chronicled on her Web site. She’s asking anyone to weigh in with advice on how to find the right man fast. By Pickett’s own admission, she isn’t a reality TV addict who is screaming for attention. 52weeks2findhim.com is merely her way of taking the reins.

“I’m past the stage of believing it’ll just happen,” she said.

Hard work

“I can’t believe how hard it is,” she said of the journey so far. “But that’s why the deadline is so important.”

... click here to read the rest of the article titled "Neenah Pickett Wants a Husband in 52 Weeks | Got Game?"

IMF: World Economy Poised For Big Drop This Year

In a dour forecast, the International Monetary Fund says the global economy will shrink 1.3 percent this year — the first drop in six decades. That could leave at least 10 million more people around the world jobless, some private economists said.

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Give the Gift of Romance without Payday Loans

No romance without finance?

Nowadays, inexpensive dates are more popular than taking out payday loans to purchase a fast food meal. Why wouldn't they be, with the current financial stress many single people are subjected to? Price increases on food, gas, rent, utilities, and clothes have caused many to experience romance on a tight budget. The old adage, "There's no romance without finance," has completely flown out of the window. But don't fret, here are some cost slashing tips that you can utilize on a date and still have a good, romantic time.

Tip Number 1

You could meet you date for an early breakfast. There have been studies that prove breakfast is the most favorite meal time for many people and thank goodness breakfasts don't have to cost a lot. Just invite your date to your home and serve them. You could take turns doing this, eliminated going out and spending money on restaurant breakfast meals.

Tip Number 2

Throw a Frisbee back and forth between each other. I'm serious. The date can become even more special if you end it with a nice walk around the park or by enjoying the swings or other park equipment. Sometimes this helps in bringing back the childhood innocence that romance is sometimes made of.

Tip Number 3

Let's say you don’t like the idea of tossing a Frisbee around in the park, perhaps you would enjoy taking a book of poems or inspirational quotes and sharing them with that special someone. A date can be made even more special and romantic by taking turns with your date reading one another poetry in the park. ... click here to read the rest of the article titled "Give the Gift of Romance without Payday Loans"