As of May 2002, consumers had about $712.2 billion outstanding in revolving credit, up about 6.8% from the previous year. Some of this credit is paid off each month; however, about 60% of U.S. households revolve some portion of their credit card balances. For those that revolve, the Federal Reserve Board reported that their balances were $4,100 in 1998. Other estimates show credit card balances as high as $8,000 in 2000 (McGinn et al. 2001). One out of five families with incomes under $50,000 spend at least 40% of after-tax income on debt servicing (Kennickell, Starr-McCluer, and Surette 2000). Needless to say, money spent on credit card debt is money that cannot go toward retirement savings. (more…)

In examining your financial condition and setting financial goals, you succeeded in nailing down where you are and where you’re going financially. But it’s important that you conduct these exercises at least annually. Keep the cash in a checking account, and watch it disappear! Wouldn’t it be better to put all the money you’ve saved on that extravaganza toward financing your child’s pay college education? (more…)

If your debt problem is not totally out of control, why not handle it yourself? It never hurts to ask lenders to lower your interest rates. Interest rates typically are not reported to credit bureaus. Some lenders may lower the rate to keep your business.

Do you want to be debt free? Do you want to be to travel the country and around the world without having to pay the bills? (more…)

The median price of a home as you read this article was running over $200,000. Don’t forget to throw in maintenance, insurance, and property taxes. To see if you can afford a home, with a mortgage, why not do the calculations that lenders do—before you get in over your head? (more…)

How would you like to have a direct deposit on your account for each time you fill up your gas using your credit card? Sounds like a great deal, isn’t it? This is what you can get when you have a gas credit card. You will have discounts or rebates of every credit purchase you make for your fill ups. (more…)

Intuitively, many people know that if interest rates are low is not the time to spare, and if interest rates are high is not the time to invest (at least borrowing). Therefore, people are always outstanding read the newspaper, listen to the news on television and listen to renowned economists to know your views on the future of interest rates. (more…)

Do you want to be treated like a VIP when entering a car dealership; and so you can get a pre-approved auto loan easily? The amount of money you could pay for car payment has saved significantly for lower other monthly bills easily. (more…)

Is it something wrong with buying a car on credit? The answer is obvious. Unlike a house, you new shinny car are losing its value starting the day you buy it. The value is dropping even more as you use it. If you buy a car on credit, there is a substantial interest payments on that rapidly decrease in value. And besides those hard facts, you still need to pay steep costs for insurance, registration and maintenance of an other expensive fee by just having car. (more…)

Ever since economists and the media began focusing on what they heralded as potentially the single largest generational transfer of wealth in history—bequests to baby boomers from their parents—my clients caught patrimony fever. Even if you could inherit a small fortune (and I don’t think you will), I don’t think it’s something you should plan on or dream of. And it’s certainly not a process you should try to replicate with your own children. (more…)

I think I've heard it all when it comes to money. When people state that they are happy with their financial situation, know that their problems might fall into one or all three of the following categories.

Spending too much - When I grew touch money - real money. If we had no coins in my pocket just not happening. We had lines of credit, credit cards or overdraft protection. Cash was all I knew. (more…)