US Financial News

It’s that season again: the leaves are falling, the holidays are coming, and the Salvation Army’s red kettles will soon be out in force. If you’ve got the holiday spirit but don’t like to carry cash, consider donating with your credit or debit card. You can swipe your card right in person at certain locations, or you can make a donation online at the Salvation Army web site.

Salvation Army members say that this convenient new payment arrangement was put in place to help young adults give more. The organization is also branching out online by incorporating social networks such as Facebook.

The nation’s high unemployment rate has caused many families to turn to the charity for aid. The Salvation Army helps feed and clothe 4.5 million people during the holiday season, and they accept donations of money and goods all year long.

The Red Kettle campaign will kick off on Friday, November 13th. To find out more, visit the Salvation Army’s web site today.

| Tags: Kettles, Salvation Army
Posted November 1, 2009 by Admin under Financial News

Q: Are Internet payday loans legal in Minnesota? I have three payday loans, and am struggling to pay. I am told that non licensed payday lenders are illegal, can not make loans here, and all I have to pay back is the principal.

A: Yes, every Internet payday loan shop in Minnesota must be licensed. So if they are, then they are perfectly legal, that is. Effective August 1, 2009, all Internet payday lenders must be licensed and comply with Minnesota Statutes. I think initially, the payday lenders making loans to Minnesota residents via the Internet must have met the licensing requirements starting December 1, 2008, but according to Minnesota State Government Online site, the date was August 1, 2009. There are many important points that can empower you and other consumers. Licensing is required regardless of whether the lender has a physical presence in Minnesota. Payday lenders are also required to comply with the limits on loan amounts, fees and charges, and other requirements of state law.

Read more…

| Tags: Internet Payday, Internet Payday Loan, Licensed, Payday Loan
Posted October 31, 2009 by Admin under Financial News

Nearly 90% of college students applying for their first credit card are freshmen. Realistically, the average college freshman does not have a checking account and possesses very little money management knowledge. Upon high school graduation, many students face adulthood decision while still thinking like a teenager. The wisest gift of guidance to give for now and the rest of their life is teaching them good money management skills before they acquire their first credit card.

Teach them they are building credit from square one for now and their future. Students need to learn there is a vital difference between good debt, such as investments that increase in monetary value, and bad debt which can quickly ruin their credit rating for years to come. Their line of credit, every purchase they make, and each bill they pay or neglect goes on their growing credit report.

Paying bills on time is critical when building credit from square one; this point can not be stressed enough. Future lenders and even employers can check on this to determine reliability, dependability and accountability.

Stress the importance of using the card for emergencies and essentials, not entertainment and everyday expenses. Read more…

| Tags: College Freshman, Credit Card, Freshman
Posted October 29, 2009 by Admin under Financial News

One of the most unfortunate casualties of this recession for employees of man small and medium sized companies has been the elimination of the match on the 401K. Matching 401K contributions is a substantial cost for employers, but one that most are willing to pay because it’s a nice benefit to attract and retain employees. Companies that provide a match have about a 10% higher participation rate in their 401K plan as employees take advantage of those free dollars. A company match is a 100% return on your investment, something that should never be taken lightly.

According to a recent survey, about 8% of companies have eliminated the company match as a cost cutting measure in response to the recession. Most of these companies say that they intend to restore the match as they become profitable again, but few have done so. Without a company match investing in a 401K is still certainly a worthwhile endeavor, but there may be better uses for the money you’re setting aside from every paycheck.

- Invest In An IRA: If your goal is to save toward retirement, an IRA might be an attractive option compared to a 401K. The

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| Tags: 401k Contributions, Match
Posted October 28, 2009 by Admin under Financial News

If you go into a dealership and the salesman or sales manager “works you on payments”, you’ll never know what you’re really paying until after it’s said and done. Many people try to buy cars based on monthly payments. $100, $200 or $300 dollar payments can be a $5,000, $10,000 or more car. If you really want to save money, you need to know what’s going on when you’re sitting down at the negotiating table at a car dealership.

Getting a customer hooked on the monthly payment amount is very, very dangerous.

When you’re presented with the first “numbers” that the dealer gives you, it will have an inflated down payment and monthly payment. When you initially object to the amount of the monthly payment, you’re falling into the trap. The dealer WANTS you to get caught up in trying to get a lower payment, because as long as your not focused on the price and your trade-in amount, you’re toast.

When you’re focused on payments, the interest rate, dealer add-on fees, the length of time that the vehicle is finance for and the price of the car… all leave the picture.

You see, if a dealer presents you with a $350 a month payment, only to “reduce” it for you to $280 to “earn your business”, has he really done anything for you?

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| Tags: Payments, Payments 200
Posted October 27, 2009 by Admin under Financial News

It has now been over a week since Citibank raised interest rates on many of its most loyal customers and it seems as if no one in the media cares.  This continues to shock me, as the number of visitors contacting me has not dwindled.  And my concern that tens of thousands of customers have overlooked these letters and tossed them in the garbage is growing by the day.

I searched Google news a few moments ago expecting to see results from the Wall Street Journal, the New York Times or USA Today.  Nothing.  And, since these are the only three papers anyone seems to read these days, that leads me to believe anyone who threw their rate increase notice in the mail will be in for a very big surprise when the new Citi interest rates take effect.

Ironically, the only mainstream news about Citi seems to focus on the fact that they cancelled a number of accounts last week without warning.  I found articles about this on MSN.com as well as in the Atlanta Journal Constitution.  Perhaps Citibank closed credit card accounts and sent rate increases hoping to distract the media with the less important, but headline grabbing story.  Honestly, however, I just can’t understand why the people who tell us what is going on in the world are too busy to talk about this unprecedented event.

I wish I was a conspiracy theorist and I could spin a tale that justifies the absence of this story from the media.  However, I think the real culprit is apathy.  Apparently, the fleecing of American consumers had become so ho-hum that a boy floating away in a balloon (or at least a fake story about that) is all they really care about.

Unfortunately, we all need to fall back on the tried and true method of word of mouth-tell your friends, tell a stranger who pulls a Citi credit card out of his or her wallet at the supermarket.  Tell whoever will listen.  If you don’t, then a representative in India will be telling them about it in a few months.  And that person will be told that 29.99% is the best rate available to them.  Hopefully, they’ll be able to transfer that debt to a balance transfer credit card.  But by then, a good rate may be 22.99%.

| Tags: Interest Rates, Rates
Posted October 26, 2009 by Admin under Financial News

A blast from the past is making a comeback this holiday season and retailers are hoping that it builds revenue numbers in what is expected to be a slow holiday season. Unemployment is expected to continue rising and is nearly at 10% already, with certain states reporting unemployment rates that are much higher than the national average. California, for instance, the nation’s most populated state, is reporting current unemployment levels over 12%. Almost no one is in a better financial position today than they were a year ago or two years ago, and as a result expectations for holiday shoppers are tempered.

To help give holiday shoppers options for financing gifts this year, many large retailers are offering layaway plans. These programs were used extensively until the early 90’s when it became easy for anyone to get a credit card with a sufficiently large credit line. These plans offer customers the ability to make a down payment on an item and then make regular payments until the item is completely paid for, at which time the item becomes the property of the buyer. Thi

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| Posted October 26, 2009 by Admin under Financial News

With the stock market on an impressive run over the past 6 months, many are wondering if a rally like this is sustainable. In the short term, stocks generally see a pull back after a rally like this, in which the S&P 500 has increased about 60% since the low point in the stock market on March 9^th. However, the stock market is driven by news and emotion and the news has been largely positive over the past several weeks, sustaining the rally and pushing the Dow Jones Industrial Average over 10,000 points for the first time in over a year.

The primary driver over the past few weeks has been positive earnings news. Because of the recession and the decline in consumer spending, expectations for most companies and industries have been fairly low over the past few quarter and the results have been consistently solid. The alarming trend is that, although many high profile companies are exceeding expectations on earnings, they are making money not by increasing sales but by slashing costs as they slow operations and layoff employees.

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| Tags: Market, Stock Market
Posted October 23, 2009 by Admin under Financial News