Every month, the COUNTRY Financial Security Index is released. This measure looks at the state of financial security in this country, and how people feel about their finances. The most recent survey results, from October, show that many people are planning on changing their financial habits as a result of the recent recession. Here is what a recent press release from COUNTRY Financial points out about their findings:
One in four (25 percent) say they would like to be less reliant on credit and debt in the future, 21 percent plan to keep a lid on spending on non-essentials, and 18 …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

Outstanding consumer credit continues to take a hit in this economy. For the seventh straight month, the August numbers for outstanding consumer credit showed a decline. This means that fewer people are getting new credit, and some are even paying down what they owe. Indeed, one of the biggest reasons that outstanding debt has fallen by $12 billion is that people have been paying down their credit cards. And that is a very encouraging sign.
Credit restrictions limit credit acquisition
The other side to this, of course, that credit is not growing. Lenders are imposing stricter credit standards on potential customers. Credit …read more

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

One of the more interesting things to land in my email inbox this morning was a press release from FindLaw.com. It was about young married women, and how they are taking the lead financial lead more than the generations before. Some of the interesting findings from a survey conducted by FindLaw.com include the following:

37% of young married women handle all of the household finances on their own, as opposed to 30% of young married men. (I presume that the remainder have some system of joint financial management.)
Most young  married women knew about their spouse’s finances before they married. This is, …read more

I really enjoy the TV show, The Office. One of my favorite episodes is one in which Michael reveals that he is deeply in debt. He wants to declare bankruptcy in the hope that all his money problems will go away. In this deleted scene, Oscar tries to help him by going through his credit card charges, and trying to figure out what Michael can do in order to pay off his debt. (While I don’t know that consolidation is always the answer, I do know it can help in many cases.)
One of the more interesting things about the episode …read more

One of the things that has become rather apparent as we’ve muddled through this recession, caused by a financial crisis, is that the system is designed to protect big financial institutions, and does very little to protect ordinary consumers who are often caught in the crossfire — even if they are doing what they’ve been told is the “right” thing to do. Retirement expert Jane White offers a historical view of the financial situation, as well as insight into what you can do to shore up your own retirement, in her forthcoming book, America, Welcome to the Poorhouse: What YOU …read more

This video from an angry Bank of America credit card holder is making the rounds. It’s an interesting video (and one with a couple of swears), and it illustrates a depressing situation that many people find themselves in. It’s a strident call for action, and she makes some good points, but we would do well to remember a couple of things:

In many cases, credit card debt is self-imposed, and we have created our own bonds.
Credit card companies can legally still do pretty much whatever they want with your terms. They just have to give you 45 days notice now, and …read more

For the first time in two years, American household net worth has increased. This is an interesting — and encouraging — sign of the current times. According to the Federal Reserve, U.S. households saw an increase of $2 trillion from the first quarter of 2009 to the second quarter of 2009. Some of the items that contributed to this increase in net worth include:

Rise in home prices.
Upward trend in the stock market.
Paying down debt.
Debt write-offs.

Most of this is good news. Indeed, the fact that Americans have been reducing their debt and relying less on credit is quite encouraging. The fact …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