Congress Reduce My Interest Rate

I wrote a post yesterday, commenting on Congress’s decision to inquiry into the practices of the Banking and [tag]Credit Card industry[/tag]. In the article I posted a link to a story on Yahoo in which [tag]Citibank [/tag]came under fire. I was glad to see the heat, because I have a [tag]Citibank credit card[/tag] and they are charging me [tag]loan shark rates[/tag] because I was late once 9 months ago.

I have called almost every month to see if they can reduce my interest rate. The answer was always “no.” For the last 9 months I have paid their high interest rates and paid more than the minimum. So after yesterdays news broke, I decided what the heck I will give them a call today to see if I could get my rate lowered.

To my surprise when I asked the customer representative he said my [tag]interest rate[/tag] was “too high” and he would definitely reduce my rate. 10 minutes later my interest rate was cut in half. Thanks Congress for putting the heat on! Even though [tag]Congress[/tag] has not legislated the [tag]credit card industry[/tag], at least it has changed the attitude of the bigger card companies.

Senate Takes on Credit Card Industry

[tag]Congress[/tag] is taking the [tag]credit card companies[/tag] to task over [tag]fees and interest rate[/tag] practices. [tag]Sen. Carl Levin[/tag], [tag]Chairman of the Senate Homeland Security subcommittee,[/tag] said an investigation by his panel found “abusive” and confusing practices by credit card companies that can increase financial pain for many families.

What Sen. Levin is doing is trying to get the credit card companies to take action on their own. They would be smart to take action because the last thing the [tag]banking industry[/tag] wants is congress to start legislating their business.

[tag]Citibank[/tag] has already made changes in their fees and interest rates to make a good show to congress.

Read more here

All American families who carry credit debt appreciate the effort of Senator Levin, but let’s hope this is a first step in getting real control of the Credit card industry. [tag]Debt[/tag] is not good for America. When Americans are strapped with debt they can spend less on the economy, their quality of life suffers, and we also know the number one cause of divorce is finances.

Stay tuned America. Let’s hope this congress goes to battle for us. Until then keep [tag]paying of your debt[/tag]!

The Party's Over

So a co-worker of mine mentioned that [tag]February[/tag] tends to be a slow month for [tag]retailers[/tag] because most [tag]Americans[/tag] are recovering from the “hang over” spending they did during the holiday. [tag]Credit[/tag] usage during the holiday is as much apart of the holiday season as the [tag]Christmas[/tag] tree itself. This is unfortunate.

I say this because our family used to be one of the millions of [tag]American family’s[/tag] who bought gifts that weren’t in the budget and relied on Credit to get what we wanted. This year 2006, would be different. We had a game plan. Start saving early and start shopping early.

The game plan, put $50 a month aside for Christmas. In theory we would have $600 to spend on [tag]gifts[/tag]. We tried to look for “[tag]deals[/tag]” through out the year, particularly at Costco. We started buying gifts in late summer. By the time December rolled around we had 95% of our gifts purchased! And it was all done with cash no credit!!

What did we learn? [tag]Reduced stress[/tag] by planning ahead. We didn’t go into debt for the holidays. Established a game plan for next year, which worked. We already have a couple things we want to buy at [tag]Costco[/tag] next week for Christmas gifts.

This post wasn’t meant to be we are better than you at all. In fact we are just like you but this year we really wanted to make a change, which started with a spending plan. This rolls into the biggest part of having good credit, create a [tag]livable budget[/tag] where you can afford to [tag]pay off debt[/tag] and not just pay the minimums. This allows for timely payoff of credit and fosters [tag]responsible spending[/tag].

I Helped Buy a Bank in China Today

How may you ask? Today [tag]Citigroup[/tag] has lead a consortium of investors in purchasing one of China’s largest regional banks. So I am glad to see the late fees and interest I have paid to Citigroup over the years have allowed them to purchase a bank.

Seriously I am not bitter at all. I made the choice in the past that allowed my self to get into [tag]debt[/tag]and owe money to the Citigroup. But it’s a perfect example of how interest works in your favor when you are on the other side of the [tag]debt equation[/tag]. We should all make sure we are debt free so we too can make our money work for us. Not that we will be able to purchase a bank any time soon but we as Americans should set the goal of securing a financial secure [tag]nest egg[/tag] for retirement.

Oh and if you want to know how much a [tag]bank in China[/tag] cost? $3.06 [tag]Billion dollars[/tag].

Debt fighting tools -Part 2

I use [tag]Microsoft Money[/tag] to track my finances. I bought the program 3 years ago and have resisted upgrades because it still does the job. [tag]MS Money[/tag]  has a great [tag]debt tracking[/tag] tool included. If you are just getting started in your journey to pay off your [tag]debt[/tag], the last thing I want to do is encourage people to go out and spend money.

There are many online tools you can use for free. I found this one on
Check out this past post with more tools.

Debt Evaluation Calculator

If you need a free online tool to evaluate your debt to income ratio check out this site on money central, it give you a step by step to input debts.

Debt evaluation calculator, debt evaluator, debt ratio – MSN Money

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First Step in being bebt free

… is to STOP using your [tag]credit cards[/tag]. I have an idea you shuld cut them up just like this young lady did! I applauded her! Every journey starts with a first step and not using your credit is the first step in becoming debt free. Watch and learn.


Spoof on Debt

Don’t buy stuff you can’t afford! While it’s a spoof, it’s very acurate! Enjoy then take steps to get out of dbt now!!

[youtube]fMudzRcPxLc [/youtube]

High Rate Cards

I just don’t know how the government allows this type of lending! I understand the higher the risk the higher the rate but there should be some control over the top rates banks can issue. Keeping people in debt is a boon for the banks but it’s a bust for our nation.

People in debt save less and are less likely to have money saved to take care of themselves when they retire. Forget about social Security it might not even be around for the coming generations.

I know critics will say that if people are not responsible then they should get higher rates. I agree but at what cost? Because at the end of the day when people are deeply in debt and they declare bankruptcy, or have no money in the bank post retirement, I am sorry to say we all will have to pay for them in forms of higher taxes and bank fees/inters rates.

When it finally does — or when you head out in search of credit — the “deals” can seem like anything but. First of all, high annual percentage rates, to the tune of 18%, 20%, 22% or more, are common on credit cards offered to those with poor credit.

Credit cards for the desperate – MSN Money

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Americans cant save

Americans are in trouble if they can’t figure out how to get out of debt! The numbers below are scary and will get worse as time goes on. We will have a generation of people who have no money to live on in retirement.

If you would like to learn more about your options to get out of debt please visit our site and sign up for our free credit repair course. This course takes the guess work out of your options and helps you to avoid the scams.

The United States does not do savings. Last year, the personal savings rate as a percentage of disposable income in this country was negative 0.5 percent, by far the lowest of any industrialized nation.In France, the savings rate was 11.6 percent. Germany’s rate was a robust 10.6 percent. Japan clocked in at 6.7 percent.What’s the problem? Americans like to spend too much, and it’s often money we don’t have. Revolving credit card debt hit $807 billion in April, according to the Federal Reserve.

Saving for the Future – Your Money – Yahoo! Finance

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