People who are smart with their money stick to a budget. People who are even smarter with their money re-evaluate their budget often. Now, more than ever, presents the need to recalculate your budget.
Things certainly don’t cost what they used to. Bread is more expensive. Milk is more expensive. Eggs are more expensive. Gas used to be extremely cheap. Then, it skyrocketed. Now, it is finally affordable again.
More and more people have become keenly aware of their day-to-day budgets. Some families have been forced to stick to a drastically-lower budget due to a recent layoffs. Other families don’t know it yet, but their turn to enter the layoff market is fast approaching.
The current economy has forced most everyone to take a daily inventory of individual budgets. Budgets need to be constantly changed and altered. Every time your financial situation changes, your budget needs to change along with it.
That is the only way to stay on top of your budget.
One more thing…American families have finally realized how detrimental it is to have massive amounts of debt. President-elect Obama recently pinpointed this catastrophe by saying that millions of American families took advantage of cheap credit to get into debt that they couldn’t afford. Now, these families have to face the realities of a weakened economy.
These families are threatened with losing everything, including their homes.
What will it take for American individuals, couples and families to realize how important it is to stick to a realistic budget.
If you haven’t used a budget before, now is the time to create one.
If you haven’t stuck to a budget before, now is the time to stick to one.
If you have too much debt, now is the time to get rid of it.
If you haven’t learned how to properly and carefully manage your finances, now is the time to learn how.
Now is the time to get everything in order for tomorrow. You never know what will happen tomorrow.
In it’s December issue, Kiplinger’s Personal Finance magazine chose the best credit card offers of 2008. Kiplinger’s chose four different credit cards to best suit almost any spending style in the most popular credit card categories: cash back, gas reward, travel and low rate. Using one of these credit cards can add up to huge savings every year. Review the list below to see the results.
- Cash Back – Blue Cash from American Express
- Gas – Chase BP Visa
- Travel Rewards – Simmons First Visa Platinum Travel Rewards
- Low Rate – Wells Fargo Prime Rate
If you pay your balance in full each month, be sure to check out these cards from American Express, Chase and Simmons First. For those that carry a balance, check out the low rate card from Wells Fargo.
To review the terms and conditons for each card, see the credit card issuer’s website for full details.
The American economy is struggling in more ways than one. Americans around the country are having a hard time making minimum payments and mortgage payments. Everyone has seemingly “tightened their belts.” Out of all of the bills out there, which one is taking the biggest hit? Credit cards.
The number of two-month credit card delinquencies has risen 24% since August. More and more consumers are finding themselves unable to pay simple credit card bills. These consumers don’t expect to get out of this bind anytime soon.
Retailers and merchants are already feeling the nationwide pinch. Consumers have stopped spending money. However, as the number of credit card defaults continues to rise, the situation will only worsen.
Recent statistics show us that approximately one in every eight credit card holders is in trouble. One in eight card holders will likely default on a department-store-issued credit card. The Fitch Retail Credit Card Index predicts more charge offs in the near future. Charge offs are debts that are deemed to be “uncollectable”. Fitch expects the number of charge offs to surpass 12% in the first half of 2009. The number of current charge offs is already 40 percent higher than the highest levels in 2007.
There is a bit of surprising news however. The Fitch Index reports that retail credit card portfolios remain healthy. How could this be when the number of defaults has escalated so much? The interest rates that are being charged to consumers exceeds the number of charge offs. Thus, the “healthy” retail credit card portfolio status.
So, how reliable is the Fitch Retail Credit Card Index? Well, it tracks more than “$72 billion in principle receivables backing approximately $40 billion of retail or private label credit cards.” Citibank Omni Master Trust and GE Private Label Master Trust are the largest issuers in Fitch’s Index. Some major retailers that are included in the Index are: Wal-Mart, Home Depot, Inc., J.C. Penny Co. Inc., Best Buy Co, Sears Holdings Corp.
Discover Financial Services has announced the introduction of the only biodegradable credit card available in the US market. The new Biodegradable Discover® More Card is made from 99% biodegradable PVC, which allows 99% of the card’s plastic to safely be absorbed into the soil of exposed landfills. The card will break down in water, soil, compost or wherever microorganisms are present and is expected to degrade completely within five years.
“The biodegradable Discover Card is another way for environmentally conscious consumers to do their part to help protect our planet,” said Kelly Tufts, director of marketing planning & strategy at Discover Financial Services.
This announcement is part of Discover’s commitment to help fight climate change and encourage responsible resource use. Discover also encourages its customers to help save paper by enrolling in paperless statements. In 2008, Discover saved more than an estimated 4.6 million pounds of paper.
Existing cardmembers can request the card directly through Discover Card’s customers service. The new biodegradable card is identified by a biodegradable symbol located on the back of the card. The biodegradable card still provides the same best-in-class features and benefits that all Discover Card cash rewards cards include.
For me personally, the answer to that question is a resounding yes! Customer service isn’t just about talking with someone on the phone or at a counter and having them answer my question or conduct a transaction for me. It’s more about my overall impression of the entire experience; the atmosphere, the goods or services and the way I was treated makes the complete package, not just some salesperson sucking up to me to get a sale. I understand that not every person at every company has the capacity to perfrom at such a standard every time, but there are a few companies out there who just seem to get it right while others can’t.
Take for example two credit card companies – USAA and American Express. Both companies have received the highest rankings for customer satisfaction, one from Consumer Reports and the other from JD Power and Associates. Is this a coincidence that I have accounts with both of these companies? Not exactly. USAA is more by coincidence for me, but without surprise, while American Express is solely by choice. My experience with both of these companies has been excellent and it is no surprise to me that either of these companies receive high ratings from other customers and ultimately from organizations like Consumer Reports and JD Power and Associates. Using a credit card from American Express does come at some cost, but I knew that before I became a customer. To me that additional cost or slight inconvenience is more than worth it.
Just like you I’ve also had bad customer service experiences too. For many years I used cellular services provided by Sprint because I was getting a “great deal” (price) on my monthly bill. However, anytime I had a problems with my phone or service, I had to go to a Sprint store where I expected to leave there completely frustrated with my blood near its boiling point. Sure the reps were nice for the most part, but no one could ever seem to really help me or fix my problem. Why I stayed with them for so many years, I don’t know, but I now recognize the money I saved on my monthly bill was not worth it at all. When the opportunity to switch to a different provider presented itself, I did so without hesitation. The money I saved resulted in a lot of frustration and an overall bad customer service experience.
So I beg the question, does customer service influence where you shop or which companies you use? For me the answer is clear, I would rather pay more, sometimes a lot more, to have customer service experiences like those I’ve had with USAA and American Express. Leave us your comments and feedback.
Over the course of the past few weeks, several changes have occurred to many of the credit cards on our website along with the complete removal of others. The proverbial belt of available credit appears to be tightening even more as interest rates are raised, credit lines are trimmed and cards are eliminated all together. And all of this is happening just as we enter into the holiday season, the time of year where retailers offer great deals on merchandise and the demand for credit increases dramatically.
Despite all the changes and the reasons for those changes, there are still some really good credit cards available and even some issuers have improved their offers for holiday shoppers this season. If you’ve been thinking about applying for a credit card this holiday season, now is the time to do so. Several very competitive and industry stalwarts are still available that earn rewards, allow you to make purchases or balance transfers for an introductory 0% APR and help establish or rebuild credit.
The term “Black Friday” can be traced back to the 1960′s in Philadelphia (WikiPedia 2008) and did not carry the same connotation it carries now. Nowadays, “Black Friday” is still synonymous with long lines and traffics jams, but more importantly the amazing deals retailers offer us on electronics, clothing and other holiday merchandise. If you’re one of the few employees who still gets a Christmas or year-end bonus, taking advantage of the “Black Friday” deals may not always be practical with the timing of a bonus. However, taking advantage of an introductory 0% APR on purchases would allow you to enjoy the special pricing on the day after Thanksgiving for many of your gifts, pay no interest and pay off the balance with your bonus. You can also enjoy additional savings when using a reward credit card.
If your looking past the holidays in anticipation to the start of a new year and are looking to make a few New Years goals, like getting out of debt, then check out balance transfer offers. Bank of America has extended some of their balance transfer offers to 15 months for 0% APR and a low 3% transfer fee. For those with a balance still on their department store credit cards accruing 20 plus percent interest, check out card offers that offer lower rates on balance transfers for those with excellent, above average and good credit.
No matter what type of credit you have, there are still many offers to choose from. Making sure you act fast to save additional money on holiday purchases, saving money on existing balances or to rebuild your credit, there is a credit card offer available for every need. Remember this holiday season to read the full terms and conditions of each card and never over-extend yourself from your ability to repay your balance in full within a reasonable time if necessary.
Remember when milk was less than a dollar per gallon? Remember when a gallon of gas was just barely over a dollar per gallon? Remember when everything was less expensive? This time has long since passed. But, did you know that Starwood Hotels now offers rates based on your birth year?
Starwood Hotels and Resorts is celebrating your birthday. Any Starwood Hotel and Resort guest can pay a special rate that is equal to their birth year. You stay has to be a minimum of two nights and a maximum of three nights. You have until December 30 to take advantage of these incredible rates.
Here’s how it works. You’ll pay the regular rate the first night (rates vary at participating Westin, Four Points by Sheraton, Sheraton and element hotels) and the special birth year rate the second and/or third night. If you were born in 1940, you’ll $40 for the second and/or third night of your stay.
If you want to stay at the luxurious Equinox Golf Resort and Spa, you’ll be able to take advantage of a similar promotion. If you were born in 1942, you’ll pay $142 for your second and/or third night. If you were born in 1964, you’ll pay $164 for your second and/or third night.
This is the perfect way to get away before Christmas. If you want to getaway to Boston, Manchester, Lexington, Providence, Stamford, Hartford, Burlington or the Canadian destinations of Montreal, Ottawa, Toronto, Quebec City, Halifax, Hamilton and Collingwood.
Call 1-866-716-8119 to book your weekend or weekday getaway. These exclusive rates are per night and per room and are based on single or double occupancy only. Some hotels offer limited dates throughout November. Other hotels offer the promotion on certain days of the week – Thursday through Sunday arrivals. You can also go online to book your stay www.starwoodhotels.com/payyourage.
American Express has the highest customer satisfaction ratings of any credit card company (JD Power 2008). Customers are pleased with the customer service that American Express offers. They are also satisfied with the exclusive membership benefits and great deals they get with their American Express card. In addition to other benefits, American Express offers fantastic deals through its partnership with Delta. Check out the American Express Platinum Delta card and the American Express Gold Delta card.
American Express Platinum Delta SkyMiles
You can earn 15,000 Bonus SkyMiles when you make your first purchase using your American Express Platinum Delta SkyMiles card. With 5,000 of these miles actually counting as Medallion Qualification Miles. You also can earn 10,000 bonus Medallion Qualification Miles every year when you spend $25,000. When you spend $50,000, you can earn an additional 10,000 Medallion Qualification Miles.
Every year you renew your card, you’ll receive a complementary companion certificate. This means you have a better chance of flying for free and taking someone with you. With the American Express Platinum Delta card, you always earn two fly miles for every dollar you spend on eligible purchases. You’ll earn one Delta mile for every dollar you spend on all other purchases.
You can also take advantage of the Pay with Miles program. This is an exclusive program, available only to American Express card members. It allows you to redeem your SkyMiles for any Delta flight, any time. You’ll also save five percent on Delta flights when you use your American Express Platinum Delta credit card.
The American Express Delta Platinum card also has a low annual fee. You can add the Emergency Card Replacement and Identity Theft Assistance. With this program you can easily manage your card online and you have access to over 500,000 ATMs around the world.
American Express Gold Delta SkyMiles
The first time you use your American Express Gold Delta SkyMiles card, you will get 20,000 bonus miles. You can also get an additional 5,000 bonus miles when you add two additional cards to your account. There is no annual fee the first year, which makes it even easier to enjoy the benefits of being a Delta SkyMiles customer.
You’ll earn two SkyMiles for every dollar you spend on eligible purchases and one SkyMile for all other purchases. As long as your account stays open, your miles never expire. That means you can earn miles now and use them ten years from now. It is so easy to sign up for the American Express Delta Gold card. You can be approved in 60 seconds or less.
The American Express Delta Gold card also comes with the Global Assist Hotline and the Emergency Card Replacement program. You can access your account online 24 hours a day, 7 days a week. At the end of the year, you’ll also receive an Online Year-End Summary which automatically organizes your previous charges into easy to read categories. The American Express Delta Gold card is the perfect personal credit card for the everyday consumer.
Millions of consumers are defaulting on their credit cards. We aren’t talking about hundreds of dollars. We are talking about thousands and thousands of dollars of unpaid balances. Because so many credit card holders are defaulting, banks are being hit…hard.
Federal regulators have now entered the picture. They are being asked by financial and consumer advocated to let lenders significantly reduce the amount of debt owed by some consumers. Consumers that are in heavy debt are being considered to begin a special program. This program would help reduce their credit card debt by up to 40 percent.
The credit card debt forgiveness program is being pushed by the Financial Services Roundtable and the Consumer Federation of America. Both of these two organizations have pointed out how desperately urgent the situation is. America has hit an all-time high in credit card defaults (both the number of defaults and the monetary amount of these defaults). Banks and other financial institutions have been left scrambling.
So, what exactly is the proposition? How will this plan work? Consumers who aren’t able to qualify for current repayment plans and who are carrying extreme levels of debt. In a recent statement, the two groups said, “This proposal would make it financially feasible for credit card lenders to provide immediate financial assistant to American consumers who are carrying record levels of debt.”
Almost every major credit card institution has already agreed to begin a temporary program. This program would forgive up to 40 percent of the person’s debt. The remaining balance can be paid over time. Each institution would evaluate each case separately and the amount to be forgiven would be forgiven on a case-by-case basis. Those who qualify to have 40 percent of their debt forgiven would reach an almost personal bankruptcy status.
The plan is hoping to create a balance between the creditor and the consumer. “We are asking to provide guidance to lenders that will in turn offer relief and stability to consumers.” Is this the best thing for Americans in such a heavy recession? Should there be more counseling programs in place to prevent people from living so far out of their means? The Federal Reserve estimates that Americans are now enslaved to approximately $900 billion in credit card debt.
What is your opinion? What should be done to combat such rising credit card debt?
Pre-approved credit cards allow you to get a credit card quickly and with a guaranteed approval. The best pre-approved credit card offers are often found online. Online credit card affiliate companies are able to use the information on your credit report to find offers that find your individual needs. These companies search thousands of credit card offers to get you the best rate, features, limit, etc.
What are pre-approved credit cards?
Credit card companies take the information on your credit history to evaluate risk. If you have bad credit or a bankruptcy, you probably won’t be approved for a high limit. However, you can still be approved for a credit card. Credit cards are an excellent way to rebuild your credit.
Credit card companies take many things into consideration before offering you a pre-approved credit card. These include, but are not limited to:
- Your debt to income ratio
- The current balance of existing credit cards
- Similar credit cards that you already use
- Certain requirements for credit card approval
- The possibility of you reacting to the pre-approved credit card offer
How does the pre-approval process work?
Often times, credit card companies ask the credit bureaus for a list of customers who met certain qualifications. You might also see an inquiry on your credit report marked as “promotional.” This means that your report was checked against a “pre-approval” list. This type of inquiry does not affect your FICO score and cannot be seen by other creditors.
If you decide to apply for the pre-approved credit card, your application is sent to a processing center. Here, your current credit report is checked to make sure that nothing new and alarming shows up. It is this credit check that is used to determine whether or not you have been approved. All it takes is a few minor changes in your current credit card balance, income information, etc.
Pre-approved credit cards take the hassle out of shopping for a credit card, especially when you use offers online. You can be sure to get the best interest rate, credit card features, rewards programs, etc.You can also choose to opt out of pre-approved credit card offer by visiting www.optoutprescreen.com and filling out the appropriate information.
