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 ways you can make a little extra money is to sell your stuff.

Today, the Federal Reserve is widely expected to cut the Fed Funds rate. Because the economy seems to be heading toward recession, the overriding goal is to stimulate the economy. And this means — as far as the Fed is concerned — making it cheaper for everyone to borrow money.
Because our economy runs on consumption fueled by debt, a Fed rate cut is expected to help stimulate the economy be stimulating more borrowing. Here’s one example of how it’s supposed to work for you and the economy:

The Fed cuts its rate, which influences consumer loans (including credit cards). This happens …read more

This morning, I was listening to the Diane Ream show on NPR while taking my son to the library. The subject was the forthcoming $700 billion bailout bill in the House, and how it is expected to loosen credit markets. I heard one of the guests say something similar to this: “If people can’t buy things on credit, the economy comes to a grinding halt.”
This was the first time I heard someone state this truth so baldly. But what has me worried is that now we’re treating this as something that’s no big deal. We *need* credit — and by …read more

Today’s B5 Business Channel Theme Day is “New Beginnings in a Challenging Economy.”
As the economy gets a little more challenging, it is time to rethink the way you do things, and to make a new financial beginning. Consider some of these “new beginnings” for your financial life:

Re-evaluate your wants and your needs and cut back on some of your wants.
Start a savings plan to build (or pad) your emergency fund.
Make greater efforts to get out of debt.
Begin living within your means.

The old way of doing things in the “easy” economy was spend, spend, spend and do it now, now, now. …read more

This tip is a biggie: Pay off consumer debt. (Especially credit cards.)
Debt costs you money. Sometimes thousands of dollars. The interest charges don’t bring you anything tangible — or even tangible — in terms of benefits. All interest from debt represents is money you pay to get someone else rich. My guest post on My Dollar Plan offers a way to plan your way out of debt.
image credit: sxc.hu
This post is part of the b5media Business Channel Great Blog Off! Find out more about the Blog Off here: http://www.b5media.com/b5media-blogs-for-a-cause-and-raises-money-in-support-of-charity/

The Business Channel is supporting Accion International for the Great …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

If you haven’t been reading those notices that come in your credit card statement, or if you haven’t looked on your statement for your credit card interest rate, you may be in for a rather unpleasant surprise.
Some credit card companies (Discover notable among them) are in the habit of periodically checking your credit report. They look for things like increased purchases or credit inquiries that result in a lower score. And then they use it as an excuse to jack up your interest rate. This is a somewhat cruel and disheartening practice for some, especially since it makes it extra …read more

One of the more popular modes of debt consolidation is using one’s home equity loan. Debt consolidation can be an effective debt management technique, and it can be a good part of a debt plan that is made to get out of debt fast. However, a home equity loan debt consolidation can be a risky way to go about it.
Why home equity loan debt consolidation seems attractive
If you have a great deal of debt, home equity loan debt consolidation seems attractive because you would never be able to get a debt consolidation loan that would pay off such a large …read more

One of the big financial planning trends right now is debt management. People seem to be drowning in debt, and the management of said debt is a quite lucrative industry. But the fact of the matter is that if you want to truly build wealth, you have to do more than manage your debt. You have to get out of debt.
In many cases, debt management involves shifting debt about, trying to lower monthly payments (and hopefully interest rates), in an attempt to make it “easier” to get out of debt. Sometimes, these debt management programs actually spread out how long …read more