Financial News Headlines

Today, more and more people are struggling to make ends meet. People who once were able to live a luxuriously or at least a comfortably are finding that they cannot live up to their previous lifestyle. People all over the country are struggling and many people have found themselves with mounting debt, missed payments and as a result a lower than desirable credit score. If this sounds like you, you are not alone. Low credit scores appear today to be the norm, not the exception. If your score is less than what you would like it to be, there are things you can do to raise it.

First, get a copy of your credit report and your credit score. Take a close look at it and check for any errors. Some errors do not have very much impact on your score, but others certainly do. Read more…

It is easy to find ways to save regardless of how hard, seems to your budget. We have all the excess built into our costs, trick is to identify our money pit, and close to the hole to avoid throwing money each month.

Extract the following suggestions to save money by making some simple changes.

Switch to basic cable to save if you really need to have access to every cable channel known to mankind? You could save a bundle every month just by switching to a basic package. There are many more ways to get your movie fix, downloading them via the Internet or rent them if you really want to see them.

Save brewing coffee at home if you spend $ 2 every morning for special tincture latte, just skip this little permission could save you $ 10 per week of work and $ 40 per month. Cartridge in the economy and the end of the year, you will receive $ 520 plus interest.

Take lunch on labor costs and costs Cut Brown bagging it takes a little extra time, but it can save lots of money and you get the added benefit of knowing exactly what you are developing in your body everyday life. Accept the challenge to eat a little healthier and save at the same time.

Clip coupons to slash your bill clipping coupons is not the most exciting way transmission time, but if you devote an hour every weekend to cut off and sort your coupons, you could eventually save hundreds of dollars, depending on the available transactions. Think about it, in terms of how much you paid per hour. If you can save $ 100 by spending an hour cutting off coupons is the same as if you were paid 100 rubles per hour. It may be worth your time.

Skip the Gym and go to the launch of the foregoing, membership in the expensive gym in favor of getting your event in a nearby park may be just the solution to save money and get some fresh air. I think that it as an opportunity to connect to your community as well.

To form a book club to save on your reading if you have friends who share your taste in books, why not form a reading circle. You can each purchase various books and their replacement by the end of his reading. Ultimately, everyone will read three books on the price of one. This is a great creative way to save without sacrificing on the little joys of life.

There are always ways to save more, regardless of how hard you think your budget, but it requires discipline and desire to get results.

Judging by the average credit card interest rates published by Bankrate.com, one could rather easily come under the impression that credit card interest rates have been relatively stable throughout the past two years.  The startling truth is that, on a relative basis, they have skyrocketed.  This is not due to any fault in Bankrate’s average.  In fact, Bankrate’s average rate formula is as good as it gets.  The real reason credit card interest rates are at nosebleed heights is that, unlike the Prime Rate most variable rates are based on, credit card rates have stayed flat or increased during the past two years, while the Prime Rate has dropped to historical lows.

To get a good sense of just how high variable credit card interest rates are today, it is important to understand the formula that determines how much credit card companies charge in interest.  This simple equation is the Prime Rate plus X.  In 2007, the prime rate ranged from 8.25% to 7.25%.  During that year, average credit card interest rates were essentially the same as they are today, with low rate cards in the 12% range.  At that time, the X in the variable rate formula was about 4.5%.

Today the Prime Rate stands at 3.25% and low credit card rates remain in the 12% range.  Thus, while one factor in the credit card rate equation has dropped by over 40%, the X factor has essentially doubled.  If credit card companies had maintained the same pricing models used in 2007, average interest rates would be around 8%, providing a welcome relief to consumers struggling to pay down excessive debt.  Instead, most credit card companies have doubled the X factor and credit card rate formulas are now increasingly based on the Prime Rate + 8%.  And that’s for consumers with excellent credit.  People with good and average credit are likely paying Prime +12% or more.

When the economy starts to improve, the Federal Reserve will be under pressure to increase the Fed Funds Rate upon which the Prime Rate is based.  While it may take years for the Prime Rate to return to historical median of 8.75%, if it were to return to the 2007 high of 8.25%, average credit card interest rates for people with excellent credit will skyrocket to more than 16%.  Consumers with good credit will likely face rates in excess of 20% and those on the fringe will see 30% interest rates.

Any consumer carrying credit card debt today who has the ability to reduce their credit card balances needs to do so as soon as possible.  0% balance transfers are an effective tool to reduce current interest expenses and overall debt loads, but 0% interest rates are temporary and may likely be less common in the coming months.  Utilizing a 0% credit card will help interest expenses from mounting, but tools like these must be combined with a concerted effort to get out of credit card debt as soon as possible.  Why?  Because what seem like high rates today will look like sweetheart deals when the Prime Rate returns to its historical mean, and consumers carrying credit card debt will find themselves caught in spiraling debt traps.

-Jeffrey Weber

Related Posts

1. Credit Card Interest Rates Keep Rising The most recent Federal Reserve survey of loan officers reveals that credit card companies have or will be increasing interest rates on 54% of customers with good credit. Yet another reason to lock

Read more…

Fees for real estate brokers can be a substantial portion of overall costs, and especially during a buyer’s market like the one we’re in now, homeowners should weigh their options regarding For Sale By Owner – nicknamed FSBO and pronounced “fizz-bo” as a cost-cutting alternative.
But before choosing which way to go, it always helps to consider these four  practical points.

#1 There is More Value at Stake Beyond the Commission
Selling yourself means a commitment of time and energy, and time is money. So decide Read more…

As a landlord, there are some advantages to qualifying for Section 8 Voucher holders. First of all, if you do not already know, then you should be aware that Section 8 Voucher holders find their own rental housing, using the vouchers they receive from their housing agency as rent assistance.

If you would like to rent to Section 8 Voucher holders, the first step to take is to get in touch with the Housing Authority in your area. You should let them know that your property is being made available, and you should also state in your advertising that you welcome Section 8 Voucher holders. It will be the decision of the voucher holder whether he/she rents your property. Read more…