If you're like me, you have worries about the economy, jobs, reduced hours at work and any number of other things. Since it's known that chronic stress increases your risk for illness, here's a few things to think about how to lower those anxiety levels.
Make a plan. Think about the one thing that is stressing you out the most and devise a plan to handle it. If it's credit card debt, talk to your creditors about lowering interest rates. If your mortgage is adjusting or you simply can't make ends meet because of a wage loss, definitely call your lender. Almost all lenders are doing modifications and you can work with them directly for free. I can answers questions for you on this if you have them. Just comment here on my blog.
Get help if you need it. A financial planner of credit consultant can often help you see solutions you may not realize are available to you.
Finally, focus on the positive. Be grateful for all you do have. A roof over your head, family and friends who love you and make you laugh, even just watching a movie you have in your collection of VHS tapes. All these things can help you see that even in these trying times, there is still so much more to be happy about!
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Wednesday, September 2, 2009
Wednesday, July 29, 2009
The 10 Changes To Credit Card Laws
Finally, the government has decided to do something to stop credit card issuers from taking advantage of consumers. On December 18, 2008, the Federal Reserve approved a series of rules that make major changes to practices within the credit card industry. Here is a list of the 10 main changes of the new credit card rules. Note: the rules listed won't take effect until February 1 or July 1, 2010, I've seen both dates published. We'll know on February 1st which it is.
1. No interest rate increases for the first 12 months of your credit card.
You can enjoy your interest rate for at least the first year after opening your new account with two exceptions. First, your rate could increase in the first year if the creditor disclosed a rate increase when you opened the account. Second, if you don't make the minimum payment within 30 days of the due date you'll be subject to a penalty rate increase.
2. No interest rate increases on pre-existing balances.
If and when your interest rate does increase, the credit card issuer can't retroactively apply the increased rate to existing balances. Only purchases made after the increase goes into effect will be subject to the new interest rate.
3. Rate increases require 45-day advanced notice, even penalty rate increases.
Banks currently get 15 days to notify you of an interest rate increase and they don't have to notify you at all for penalty rate increases. The increased time for an advanced notice will give you more time to respond to an interest rate increase.
4. No more double billing cycle finance charges.
The double billing cycle method of calculating finance charges allows credit card issuers to charge interest on balances you've already paid. The Federal Reserve has outlawed this expensive practice.
5. Limited fees for subprime credit cards.
Subprime credit cards can no longer charge up the cardholder's credit limit with fees. Now, fees are limited to 50% of the credit limit, but only 25% of those can be charged when the account is opened. The remaining fees must be spread over at least five billing cycles.
6. Billing statements must be sent 21 days before payment due date.
The current rule requires billing statements to be sent within a reasonable time for the consumer to make payment. The new rule puts a time period on that "reasonable time.
7. Payments received by 5:00 pm on the due date are on time.
The Federal Reserve recognizes that banks must have a cut-off time for accepting payments and sets that time to 5:00 pm. The didn't specify a time zone, so, sending your payment early is still a good practice.
8. Payments received the next business day after a weekend or holiday are on time.
If your due date falls on a weekend or holiday and your credit card issuer doesn't process payments on that day, your payment is still considered on time if it's received by the next business day. For example, that means the Monday after a weekend or December 26 during the holidays.
9. Payments above the minimum are applied to highest interest rate balances.
The minimum payment would go toward your low-rate balance, while the remainder of your payment must be applied to the balance with the highest interest rate. This reduces your interest cost over the life of the credit card versus the alternative of applying the complete payment to the low rate balance.
10. Billing statements must include year-to-date total of interest and fees.
Now, you'll be able to see just how much interest charges and fees you pay on your credit card. When the rules take effect, your billing statement will have to list the current month's interest charges and fees along with the total amount you paid during the year.
The bulk of this report is from about.com at
http://credit.about.com/od/consumercreditlaws/tp/new-credit-card-rules.htm
1. No interest rate increases for the first 12 months of your credit card.
You can enjoy your interest rate for at least the first year after opening your new account with two exceptions. First, your rate could increase in the first year if the creditor disclosed a rate increase when you opened the account. Second, if you don't make the minimum payment within 30 days of the due date you'll be subject to a penalty rate increase.
2. No interest rate increases on pre-existing balances.
If and when your interest rate does increase, the credit card issuer can't retroactively apply the increased rate to existing balances. Only purchases made after the increase goes into effect will be subject to the new interest rate.
3. Rate increases require 45-day advanced notice, even penalty rate increases.
Banks currently get 15 days to notify you of an interest rate increase and they don't have to notify you at all for penalty rate increases. The increased time for an advanced notice will give you more time to respond to an interest rate increase.
4. No more double billing cycle finance charges.
The double billing cycle method of calculating finance charges allows credit card issuers to charge interest on balances you've already paid. The Federal Reserve has outlawed this expensive practice.
5. Limited fees for subprime credit cards.
Subprime credit cards can no longer charge up the cardholder's credit limit with fees. Now, fees are limited to 50% of the credit limit, but only 25% of those can be charged when the account is opened. The remaining fees must be spread over at least five billing cycles.
6. Billing statements must be sent 21 days before payment due date.
The current rule requires billing statements to be sent within a reasonable time for the consumer to make payment. The new rule puts a time period on that "reasonable time.
7. Payments received by 5:00 pm on the due date are on time.
The Federal Reserve recognizes that banks must have a cut-off time for accepting payments and sets that time to 5:00 pm. The didn't specify a time zone, so, sending your payment early is still a good practice.
8. Payments received the next business day after a weekend or holiday are on time.
If your due date falls on a weekend or holiday and your credit card issuer doesn't process payments on that day, your payment is still considered on time if it's received by the next business day. For example, that means the Monday after a weekend or December 26 during the holidays.
9. Payments above the minimum are applied to highest interest rate balances.
The minimum payment would go toward your low-rate balance, while the remainder of your payment must be applied to the balance with the highest interest rate. This reduces your interest cost over the life of the credit card versus the alternative of applying the complete payment to the low rate balance.
10. Billing statements must include year-to-date total of interest and fees.
Now, you'll be able to see just how much interest charges and fees you pay on your credit card. When the rules take effect, your billing statement will have to list the current month's interest charges and fees along with the total amount you paid during the year.
The bulk of this report is from about.com at
http://credit.about.com/od/consumercreditlaws/tp/new-credit-card-rules.htm
Monday, July 20, 2009
When Your Hands Are Tied
I consult with individuals who are facing financial difficulties. Many call me with regard to mortgages that are adjusting or credit card companies who are not working with them. It's heartbreaking when I hear one of my clients tried on numerous occasions to work out a payment plan when they had fallen behind due to their hours at work being cut, only to be told that they now don't make enough money to qualify for a hardship repayment plan! Does that make any sense? After three months of no payments, still making the same lower income, the big bank calls her back to offer her a 0% interest plan and offers to match every payment she makes toward helping her pay down her balance! Why wouldn't they help her when she asked for help instead of forcing her hand to fall 90 days past due on the account? She felt like her hands were tied. She couldn't make the payment, they wouldn't work with her and even if she made a lesser payment, her account would still be reported as delinquent, late fees charged, and credit tarnished.
This is my area of expertise so I know what I would do. With the information you have, what would you do if you felt like your hands were tied when trying to get a credit card company to work with you? Share with me what you think they can do to you if you don't pay. I'll be sure to comment and share with you what I know to be true.
This is my area of expertise so I know what I would do. With the information you have, what would you do if you felt like your hands were tied when trying to get a credit card company to work with you? Share with me what you think they can do to you if you don't pay. I'll be sure to comment and share with you what I know to be true.
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