In the rush at the store checkout this holiday season, you may be tempted to say yes when asked if you want to apply for a store credit card — especially if you’re offered extra savings on that day’s purchase. It may help in the long run if you resist accepting an offer at checkout on the spur of the moment and instead dig deeper into the terms and conditions before signing up.
Soaring interest rates could mean you’ll ultimately pay more than you save from any perks a store brand offers. The average retail credit card charges a 26.72% annual percentage rate, with a high of 30.74% which measures how much it will cost per year if you carry ...
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Buy Now Pay Later Could Lead to the Financial Downfall of a Generation
For the past 60 years, Americans have been impacted by the vicious cycle of credit cards. Now there is a new kid on the block.
"Buy Now, Pay Later" (“BNPL”) has taken the personal finance arena by storm. The number of Americans who have used the lending model, which is highly popular in Australia, has increased 300% every year since 2018, according to Bloomberg.
BNPL companies like Afterpay, Klarna and Affirm claim that the model is financially inclusive to people who can't access traditional forms of credit. Consumer Finance Advocates argue the model is under-regulated and poses risks to consumers. If this sector continues to grow, ...
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Credit Card Companies Not Seeing Economic Reality – Too Much Debt Is A Bad Thing
Americans are projected to fall seriously behind on their credit card bills at the highest rate in a decade as banks push a record number of people to get plastic.
The share of credit card borrowers who are at least 90 days past due on their accounts will probably tick up to 2% next year, the highest level since 2010, according to a forecast by TransUnion. Still, the credit-rating company said the increase isn’t a cause for concern, noting that bad card debt still remains much lower than the level seen during the last recession.
The number of people with access to revolving credit reached a record 200.5 million in the third quarter. That ...
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Start Off Right – 12 Financial Tips That Can Last A Lifetime
When you enter your 20s, you try to figure out life and (hopefully) learn from your mistakes. For many, it’s the first time they’re faced with dealing with finances completely on their own.
You may be taking out student loans or trying to pay them off. You’re learning to manage credit cards and pay your bills, and you’re entering the workforce. What you do with your money in your 20s -- your saving and spending habits, and the debt you incur -- will stay with you into your 30s and beyond.
Penny-pinching and living within a budget aren't fun, but it’s a whole lot better than finding yourself swimming in debt and stressed about money. If ...
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Don’t Ignore Your Credit Report
It pays to be familiar with your credit report. The information it contains determines your credit score, your ability to access credit and loans, and even your chances of landing a job or signing a lease. It's a good idea to check your credit report on at least an annual basis. In certain scenarios, however, you should closely monitor your credit report no matter when you last checked it. Here are six times you need to check your credit report.
Debt Collectors are Calling
If you're getting calls from debt collectors regarding unpaid bills, you may need to do some damage control. Whether the debt in question is valid or not, it could ...
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SIX QUESTIONS TO DETERMINE IF FINANCIAL TROUBLE COULD BE BREWING
Whether you consider yourself to be financially responsible, or you always seem to come up short on cash, there are a few key indicators that may indicate you are living beyond your means—and being aware of them can save you loads of money woes in times of a cash emergency.
1. Do you have an emergency fund?
Need some motivation to start saving? Sit down and add up how much money you make each month. Then, multiply that amount by six. That is the amount that most financial advisers recommend as an emergency fund.
Most individuals underestimate life’s uncertainties and discount the need to have cash available for unexpected events like ...
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Seniors Struggling With Debt Likely To File For Bankruptcy
Older Americans are being squeezed in many ways. Healthcare and other basic expenses are rising. Fewer have pensions to supplement their Social Security income in retirement. Low interest rates mean what savings they do have isn’t growing quickly — unless they are willing to invest in higher-risk financial products.
And then there’s the other side of the equation: Credit and Debt. Many seniors have not properly planned for retirement financially. Many have used credit cards freely in the earlier stages of retirement to maintain their pre-retirement lifestyle without a plan on how to repay it.
Older Americans are increasingly struggling ...
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7 Ways Deal with an Online Shopping Addiction
Many Americans have discovered the ease and convenience of shopping their favorite retailers online and it has led to a rise in online shopping addiction. For some people it is the thrill of shopping, and online shopping is an even faster way to satisfy their craving to shop. For others, it is a way to feel good about themselves or reward themselves. The consequences of the spending spree might not catch up with them for weeks or months, until they can't pay their credit card bill and finally discover just how much they have been spending.
So what can people do if they think that they have an online shopping addiction?
REVIEW: Review your ...
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12 Signs of a Compulsive Debtor
According to the Federal Reserve, the average credit card debt per American household is almost $16,000, with almost 610 million credit cards held by U.S. consumers in 2009. With each cardholder having an average of 3.5 credit cards, it is no surprise that chapters of Debtors Anonymous are popping up all over the country. Their 12-step program is patterned after Alcoholics Anonymous, and helps members recover from “compulsive debting” and lead happier, healthier lives.
According to Debtors Anonymous, the 12 signs of a compulsive debtor are:
Being unclear about your financial situation: Not knowing account balances, monthly expenses, loan ...
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What Makes Me Different From the Others?