Financial News Headlines

Based on the unprecedented amount of feedback received by Smart Balance Transfers this year, I think its fair to say that a very large percent of credit cardholders have endured at least one interest rate increase, credit limit cut or account closure this year.  In fact, I wouldn’t be surprised if a majority of Americans were impacted this year.  The Credit Card Act, which gained steam early in the year and finally passed in the spring, was supposed to prevent the reckless and massive rate increases so many of us have experienced.  Unfortunately, it may have fueled the rate hike frenzy and a new push from Congress to implement new laws is clearly too little and much too late.

Whether or not the passage of the Credit Card Act was responsible for the unprecedented interest rate hikes that have left many Americans paying interest rates as high as 29.99% is an issue for debate.  I, however, believe the Credit Card Act triggered a domino effect, causing already nervous banks to overreact to the threat of more stringent laws.  This, in turn, fueled a nine month long parade of rate increases from just about every major credit card company, culminating in Citibank’s raising of interest rates to 29.99% two weeks ago.

Even without the new laws, credit card companies were facing massive losses and record customer defaults.  However, the new laws will change the way credit card companies do business, taking away risk controls and fee income that help offset the risk of unsecured lending.  Consequently, as the passage and implementation of the laws became a reality, credit card companies went into overdrive and interest rate notices became as common as pre-approved credit card mailings were two years ago.

Now, after the bulk of interest rate increases have already been passed onto consumers, Congress is looking to push up the implementation of the final parts of the Credit Card Act.  Unfortunately, it is too little, too late.  How much higher can Citibank raise interest rates?  Not more than 29.99%.  The same is true with most other banks, most of which raised rates this spring and summer.  Thus, with interest rates already through the roof, a move to halt rate increases on December 1st would be nothing more than a political sideshow.  And that show is financed by the increased interest rates we are paying in exchange for consumer protections that have done nothing but harm the finances of millions of Americans.

Creating passive income streams is the gold rush of the 21st century.

Imagine a business that is open 24 hours a day, 7 days a week, that has an open door in every single corner of every single street in every single nation around the entire world. Sound impossible? This is exactly what any internet business is. Where there is an internet connect, there is a potential to have customers for any business, in any part of the world.

A passive income business takes that idea even further. It’s a business model that does not require any kind of presence or participation from the business owner in order for a transaction to be completed. Customers can find, purchase, and receive their purchased goods automatically. Read more…

It wasn’t long ago that employees were rewarded for their loyalty to a company with a pension. For you younger readers the word pension may seem like it’s from a foreign language. It’s true, and in recent years the classic pension plans have been dwindling. Pension plans had a very unique feature that most retirement plans today lack: income for life. That’s right, most pensions were set up to pay you each month for the rest of your life, regardless of how long you live.

That’s a great benefit, right? This feature is what made pensions so attractive. While the actual dollar amount might not be enough to enjoy a lifestyle of the rich and famous, the fact that you could depend on this check coming in the mail every single month for the rest of your life made up for that. For many

Read more…