We’ve been seeing a lot lately about how revolving debt, such as credit card debt, is on the decline. Many consumers are interested in recovering from their debt, and the current economic climate has prompted many to begin digging out of debt, as well as avoid getting into additional debt. However, it may not just be consumers’ doing that the debt rate is shrinking right now.
Credit card issuers themselves have tightened standards, and so there is less debt being issued in general. On top of that, it is quite possible that charge offs are playing their role. Here is what …read more

Many people are finding that they are having difficulty right now making payments. Credit card debt has gotten a bit out of control, and people are waking up to the realities of their financial situations, so it is little surprise that many are trying to get out of debt. Unfortunately, interest rates and piled on fees can make this a daunting task. The good news is that there are hardship programs available that can help you repay your debt.
I received an email from A New Horizon, a credit counseling and debt solutions company, pointing out that some credit card issuers …read more

I was asked about what I think about the economic stimulus plan that Barack Obama laid out in his weekly address over the weekend.

Almost two weeks ago, I posted a news package from NPR in which I was heard talking about fixing the economy. One of the major points of the interview — although it didn’t make a significant appearance in the news package — was that as long as we have an economy that is based on continued consumerism fueled by debt (mostly credit card debt), we will have a relatively unstable economy in which explosive growth is expected, but unsustainable, over the long run.
Indeed, everything our leaders have been doing, in the name of fixing the economy, has been aimed at …read more

In August, the Wall Street Journal Online reports, consumer credit dropped. (Hat tip: Miki at Leadership Turn for putting me on to this.) Outstanding debt decreased in August for the first time in ten years. I think the current economic troubles are starting to wake people up to the dangers of excessive consumer debt. People are scaling back and making hard decisions.
Or, it could be that they just can’t get any credit. With the credit market freeze, it’s actually getting increasingly difficult to borrow. The banks are wary of lending. Turns out lending to anyone hasn’t been working out all …read more

The big financial news this morning is that the Fed has cut rates to 1.5%. This is part of a global effort to cut rates by 50 basis points, made by central banks in several other countries. The plan is to try and free up the credit markets and get cash moving around the world.
For those of you struggling with credit card debt, you have a great opportunity.
With interest rates dropping, your credit card interest rate is likely to drop as well. This means that more of your payment will go to the principal. It’s the perfect time to aggressively …read more

I’ve had a lot of experience with loans. A lot. And I’ve had just about every type of loan you can think of. Which is why I have a deeply personal and abiding dislike of debt, despite the fact that the social stigma associated with debt has largely disappeared.
So, with inspiration from Ginger at Girls Just Wanna Have Funds, I am sharing my  loan experiences with the world.
I do hope that you’ll join in by leaving a comment, and/or a link to any post you write on the subject.
Payday loan
I think I’ll get the ugly out of the way right …read more

Are you into saving money? And I mean really saving it. You know, by setting it aside in some sort of an account (be it investment or high yield savings or CD). Do you do that? I do, and I really felt the truth behind a recent BusinessWeek article about how savers are basically getting the shaft. Due to the very real effects of inflation, many savers are finding that their gains are being eaten away. And with the bear market, some are concerned that investment accounts are tanking.
All of this is somewhat excerbated by the recent attempts to shore …read more

Normally, I am not overly fond debt negotiation. After all, the idea is that you stop paying your creditors and put money into a third savings account. The debt negotiation company then works on settling your debt (usually for less than you owe overall) and then pays the settlement out of the third party savings account. Most debt negotiation companies will try and get anyone to sign up for their programs, even if they aren’t needed.
Rise Above Debt Relief has a different approach. Recently, I spoke with Jeff Boulton, CEO of the company, about his approach to debt management.
“We really …read more

A lot is written about your credit score:

How to improve your credit score (from paying down credit card debt to paying your bills on time).
What goes into a credit score (payment history, amounts owed, etc.).
Why your credit score is important (better rates, loan approval and more).
Where to find your credit score (MyFico.com, major credit bureaus).

But what isn’t addressed very much is how much you will pay to see your credit score.
It doesn’t cost that much: $5.95 to $15.95 per score, depending on where you go and the services that come with it.
But it still costs money. And you usually have …read more