If you are wondering exactly how the credit and debt industry works, Deceptive Money by Bob Brooks is a great resource. Brooks, who hosts the Prudent Money Show, takes different examples of credit card practices and debt solutions practices and breaks them down so that you can see exactly how the credit and debt industry makes money — and what you can do to avoid becoming a victim.
It’s important to note, though, that Brooks doesn’t excuse consumers from their responsibility in all of this. He makes it very clear that if you incur debt, you should repay. What he takes …read more

Right now, airfares are actually fairly reasonable. Fares are falling, encouraging people to take advantage of fall fare sales. However, airlines are still looking for ways to make money. And one of the ways to do that is to charge extra fees. The cadre of fees you are subjected to these days may easily erase the lower fares you are paying. And you may not notice them until it is too late. Here are some of the fees you might run into this year as you travel:

Daily surcharges: Busy travel days are now being targeted. American Airlines, Delta, U.S. Airways, …read more

One of the reasons that bankers and investors and others in similar fields are lobbying against regulatory reform is that it would stifle “innovation.” Apparently, transparency in reporting practices and requirements to explain to consumers what is happening when they sign the dotted line is something that hinders innovative financial products from taking root in the market. But do we really need all these “innovations”?
Let’s review some of the fabulous financial “innovations” that have provided so many fantastic opportunities for individuals over the last couple of decades:

Option ARMs
Interest-only home loans
Payday loans
Fee harvester credit cards
Derivatives

Most of these “innovations” turned out to …read more

One of the things that surprises many people is that they have a separate insurance score. When it comes to getting property insurance, companies can look up your CLUE (Comprehensive Loss Underwriting Exchange) report and see what claims you have made on your insurance. This information is used to develop a score that insurers can use to help determine the cost for your coverage — or if you can even qualify for coverage.
Your CLUE report contains the following information about your insurance claims:

Policy information (your name, birth date and policy number)
Claim information (date of loss, type of loss, amounts paid)
Description …read more

One of the ways that banks make a great deal of money is through overdraft charges. When you exceed the amount of money you have in your checking account, the bank charges you an extra fee. This can be anywhere between $25 and $45 per transaction. That’s right per transaction. Consider that you have $20 in your account, and you make the following transactions:

$15 for a book.
$6 for coffee and a pastry.
$3 for parking.

Now, that $6 transaction put you $1 over your limit. You will be charged, on average, $39 for that transaction. And, of course, you will also be …read more

I’m one of those people who thinks that the credit card can be a great personal finance tool — when it’s used correctly. If you have a good rewards program, or if your credit card offers some decent perks, then you can do well with a credit card. As long as you only use it to buy what you can afford, and are careful to pay off your credit card every month, I think a credit card can be a good way to earn free stuff.
Unfortunately, we are seeing changes to credit card perks and rewards programs. Five Cent Nickel …read more

Go on a holiday spending diet. Plan it out now.

Credit card issuers are in control when it comes to terms — even with the new Credit CARD Act.

Do you get your money’s worth when you eat out?

My Oliver Peoples sunglasses make me feel better about myself.