Debt

Debt Diet Part 5: Making men, women and money get along at the holidays

Gina Roberts-Grey Dec 10th 2009 @ 4:00PM EST Filed Under: Credit, Debt, Economizer

Experts tout talking about money as one of the best ways to avoid financial miscommunication in a relationship. But what if you and your honey aren't really hearing what the other has to say? Or even worse, what if you two speak a completely different money language?

Having the "money talk" is essential to keeping your Debt Diet on track. It's also (believe it or not) one of the cornerstones of a good relationship. That's why, with just two weeks left in the holiday shopping season, it's important to make sure you and your mate aren't just talking, but that you're truly listening to what each of you has to say about money. Otherwise, you're likely to blow your budget -- and your partner's likely to blow their top -- while you're scooping up gifts this weekend.

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Should we break up big banks?

Martha C. White Dec 5th 2009 @ 5:00PM EST Filed Under: Banks, Debt, Insurance, Recession

Ever since the news got out that the U.K. plans to force some of its large, bailout-receiving banks to sell off some operations and become smaller, there's been plenty of speculation on this side of the pond that we might do the same thing.

Richard Fisher, president of the Dallas Federal Reserve Bank, threw down the gauntlet when he said recently that banks considered "too big to fail" should be broken up to make the economy more stable. (Fisher's full speech on the topic is here if you're interested.) A committee in the House of Representatives is pushing for new legislation that would go even further and let the government break up other kinds of companies -- not just banks -- it deemed a threat.

It's a very satisfying idea: Banks that get too big to handle should be forced to downsize. Only trouble is, a lot of economists think it won't address the problem. "The problem is, the really emotionally satisfying things that we could do all create more harm than good," said Douglas Elliott, a fellow at the Brookings Institution, a think tank. On the subject of breaking up banks dubbed too big to fail, Elliot told WalletPop, "It would hurt the economy, which ends up hitting the average person."

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Debt Diet Part 4: Respect your money

Gina Roberts-Grey Dec 4th 2009 @ 3:00PM EST Filed Under: Credit, Debt, Economizer

The way you treat your money and your budget, experts say, can play a big role in being fiscally sound. Especially when you're on a "Debt Diet" and trying to not exceed your financial calories this weekend.

Where you balance your checkbook and keep your cash can help you stick to your Debt Diet and help ensure you don't ring in the new year with a financial hangover.

Here are a few ways to make sure you're making the most of your money. And able to stick to your "Diet" this weekend.

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How much debt is too much? Depends!

Zac Bissonnette Dec 3rd 2009 @ 6:00PM EST Filed Under: Debt

To be fair, looking for bad advice in US News & World Report is a lot like trying to find something beautiful in the Louvre.

It's just too easy. Last week, I took US News to task for advising parents on taking out student loans when they can't afford their own mortgage payments.

This week, Rick Newman, the magazine's chief business correspondent, offers this horrible, horrible, horrible piece of advice: "The average debt-to-income ratio, or DTI, is 125% today. Economists roughly consider a 100% DTI ratio to be "normal" or healthy. So if you owed a combined $125,000 on your mortgage, car loans and other obligations and earned $100,000 in take-home pay, you'd want to pay down your debt by $25,000, or 20%, to be in the safe zone."

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Tips for applying for a new credit card

Lita Epstein Dec 3rd 2009 @ 2:30PM EST Filed Under: Credit, Debt, Credit cards

While many shoppers are planning to use cash or a debit card this holiday season, some will still find they need to apply for new credit. I know many at Wallet Pop will tell you that you should just spend less, but just in case you do decide to apply for credit, do it wisely. You also may find it harder to get.

"Shopping and applying for cards isn't as easy as it used to be," Bill Hardekopf, CEO of Lowcards.com and author of The Credit Card Guidebook, told me by e-mail interview. "Consumers should now expect higher rates and lower credit limits. Approval is no longer a sure thing."

If you still want to apply for a new credit card, here are a few tips to think about first:

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12-step help for shopaholics

Gina Roberts-Grey Dec 3rd 2009 @ 1:30PM EST Filed Under: Budgets, Credit, Debt

It's pretty common knowledge that alcoholics, gamblers and drug addicts have support groups and 12-step programs to keep them on the wagon. But did you know there are similar groups for compulsive spenders, debt addicts and shopaholics?

Debtors Anonymous, a support organization patterned after Alcoholics Anonymous, uses a 12-step program to help people -- first name only -- stop abusing their credit cards and kick their free-spending ways.

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Top 10 tips for shopping for online loans

Janean Chun Dec 1st 2009 @ 3:00PM EST Filed Under: Credit, Debt, Personal loans, Mortgages, 101 mortgages

This isn't your father's banker. Your father's banker was probably human. Today, you can get online loans without ever stepping into a bank -- actually, without even leaving your home. But that facelessness can be either convenient or dangerous. You need to be cautious when shopping for online loans, so you find a legitimate online loan provider and not a scam artist trying to take rather than give you money.

Here are the top 10 tips for getting online loans.

Online Loans Tip #1: Make the most of online advantages. One of the biggest benefits of shopping for online loans is you can easily compare rates and offerings and get qualified and approved quicker than from traditional banks.

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Showing this weekend at a movie theater near you: credit card advice

Geoff Williams Nov 28th 2009 @ 12:00PM EST Filed Under: Debt, Credit cards

In the midst of all your shopping on Black Friday and in the aftermath, are you planning on taking in a movie? Before you watch the latest Twilight movie, or Ninja Assassin or whatever you think will put you in the holiday spirit, the government has some advice for you on how to use your credit card.

The Federal Reserve announced Wednesday that it's sponsoring a 45-second ad that will appear before movie previews at 12 theaters in 12 cities from November 27 through December 3. The ad is a public service announcement, reminding people to use their credit cards wisely and to offer some advice on how to handle them.

If you don't go to the movies during that time or aren't in one of the theaters, and you'd like to see what you're missing, the ad can be viewed by clicking here.

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Five words to never to say to your lender

Lita Epstein Nov 27th 2009 @ 6:00AM EST Filed Under: Banks, Credit, Debt, Fraud, Recession, Credit cards

Getting a loan can be a difficult task in this economic environment. Many lenders won't even consider an application for a mortgage unless your credit score is above 740. Others will consider an application, but zap you with an outrageous interest rate.

Even if you have excellent credit, there are still some phrases you should never say when trying to get a loan. For example:

1. DESPERATE

One of the worst things you can say to a loan officer is that you desperately need the money, then ask how can you speed up the loan process. That's putting a big red flag in front of the loan officer. He'll wonder what the emergency is and is more likely to decline your application.

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It's not everyone's favorite shopping holiday: the dark side of Black Friday

Geoff Williams Nov 25th 2009 @ 2:00PM EST Filed Under: Debt

Black Friday may be the start of the shopping season, but for some people, it's a painful reminder of what they don't have. For those people, it's almost become an anti-holiday.

"On Friday, I'm planning on tackling a number of things off my honey-do list," says Robert Zonis, a product development chemist in Shelbyville, Tenn. who recently learned that his job will be terminated at the end of the year. "At least that's the plan. I know I'm deliberately staying away from television, radio, newspapers and leaving the house in general."

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Debtor's Diet Week 3: Setting your table on a budget

Gina Roberts-Grey Nov 25th 2009 @ 11:00AM EST Filed Under: Budgets, Debt, Economizer

Chances are you're enmeshed in stuffing turkey, prepping pies and getting ready to set your Thanksgiving Day feast table. And if visions of getting up tomorrow at the crack of dawn to pop a turkey in the oven or to polish your grandmother's silver sound familiar, you're not alone. Scores of turkeys, platters and pies will be carefully tended to tomorrow in the hopes of presenting family and friends with a delightfully delicious meal.

But like any good cook, you know that the presentation can be just as important as the taste, which means you've got to set and decorate your Thanksgiving table. It also usually means needing to run to the store to buy table decorations you'll most likely use just once or twice. And that's an expense you don't need to incur.

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Chase becomes first bank to drop arbitration clause

Lita Epstein Nov 23rd 2009 @ 4:15PM EST Filed Under: Credit, Debt, Credit cards

JP Morgan Chase became the first bank to drop its arbitration clause from its credit card contracts, so Chase credit card holders will have the right to go to court to dispute a problem with its credit card decisions.

This decision was part of a settlement of an antitrust lawsuit filed by Minnesota Attorney General Lori Swanson that involved the largest arbitration company, the National Arbitration Forum, in July. The Forum is no longer part of the process of consumer-debt arbitration, but the banks have not yet settled the suit. This move by Chase will likely encourage other banks to do the same thing.

While Bank of America became the first one to announce that it would no longer require credit card, bank account and auto loan customers to sign away their right to sue and force arbitration, it has not yet settled the existing lawsuit. Capital One Financial, HSBC Holdings and Discover Financial are among the other financial institutions named in the suit.

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