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…)

It’s always good to have a get-together with your friends - most especially with those whom you’ve not seen for quite some time now. It’s a wonderful feeling to talk to them again and reminisce old times. Of course, it is also great to catch up on the latest buzz or on the latest happenings of their respective eventful lives.

And as the host of the party - or the simple dinner - you need funds. (more…)