Debt Reduction Advice | Debt Reduction Advice

Tuesday’s Twitterer To Follow: @Recessionista

Wondering who to follow in the big wide world of Twitter? There are plenty of great Twitterers out there tweeting about money, debt, and finance– the topics we know you love. So every other Tuesday we’ll be  highlighting a Twitterer to follow. This week we’re turning the spotlight on @Recessionista.

Looking for a deal maven to add to your Twitter stream? You may just want to click “follow” on @Recessionista’s profile. She’s Mary Hall, author of the blog, The Recessionista, and Huffington Post contributor. Throughout the day, Mary tweets about sales, discounts and deals that anybody looking for a bargain will love. If freebies are more your thing, don’t worry– Mary dishes those out too.

And if you’re one of our male readers– don’t count @Recessionista out. Chances are you’ve got gifts to buy and a closet to fill, too. You’ll probably love Mary’s tweets just as much as the ladies will. So if you’re looking for a bargain hunter to help you find the best deals on everything from clothing to cosmetics, you’ll definitely want to check out @Recessionista.

Tuesday’s Twitterer To Follow: @Recessionista is a post from: Thistle Debt Consolidation

How to Vacation Even When You’re Doing Bad Credit Repair

The summer is here and while some of us are busy with bad credit repair, others are thinking about going on vacation and trying to figure out, perhaps for the first time, how to do that without a credit card. Fear not, though. Here are a few tips will let you relax, even after the bad credit repair service has taken away all your credit cards:

Use Traveler’s Checks

Before credit cards and ATMs became popular (and before anyone ever heard of trying to repair bad credit history), American Express was offering traveler’s checks which were and still are accepted worldwide. The checks are signed by you at the time of purchase, and then they are meant to be signed again in the presence of the person you are handing the check to. The signatures can then be compared and the check thus honored. While traveler’s checks aren’t as popular today as they once were, they can still be purchased from banks, AAA offices, and a variety of check cashing places. None of these places will care one bit that you are busy trying to repair bad credit score numbers.

Use your Bank Debit Card or a Prepaid Debit Card

If you still have your bank debit card and you have money in the account, you can pretty much use it the way you would use a regular credit card. Unfortunately, however, we find that some people who are trying to repair bad credit will also have their bank accounts closed or frozen if any action has been taken against them. In those cases, many stores now sell “prepaid” Visa or Mastercard debit cards which can be used the exact same way that a regular credit card is used. You should be able to purchase airline tickets and pay for food with them. However, be aware that you may be stuck with public transportation as most rental agencies will require at least a debit card in your actual name.

Stay with Friends of Couch Surf

If you are working with someone who will help repair bad credit, there is a good chance that money is tight at home. You can save a bundle, and you won’t have to worry about how it will affect your efforts to repair your bad credit because couch surfing is strictly a “pay it forward” kind of place where your only payment is supposed to be that you’re a conscientious guest and that you open your own home sometime to someone else, perhaps even someone else undergoing bad credit repair.

How To Protect Yourself From A Debt Collector

We told you previously that complaints regarding debt collectors have skyrocketed. According to the Federal Trade Commission, harassment complaints jumped up by 50% in 2009. So what if you find yourself on the receiving end of harassment from a debt collector? Do you know what to do? It’s important to know your rights.

Debt collectors are allowed to be persistent– that’s their job. “debt collectors are allowed to engage in legitimate practice in order to try to collect debt. They are allowed to call the consumer at reasonable hours. They are allowed to contact the consumer through the mail. But there are certain things that they are not allowed to do,” FTC Commissioner Julie Brill told CNN Money. They can’t, however, harass you about your debt. They are allowed to call your home and workplace during certain hours, but they’re not allowed to use foul language.

If you feel you are being harassed by a debt collector, keep in mind that you are protected under the Fair Debt Collection Practices Act. And there are many more things that could get a debt collector in trouble besides just using foul language. Here are a few to keep in mind:

• Debt collectors can  not threaten to garnish your wages.
• Debt collectors can not threaten to press charges.
• Debt collectors can’t contact your family, friends or neighbors to discuss your debt.

It may seem a little surprising, but debt collectors are allowed to contact you through your social media accounts. They must tell you they are a debt collector, though. “What they can’t do is they can’t start contacting you and friending you unless they tell you they are a debt collector,” Brill told CNN.

If you do feel you are being harassed by a debt collector, you are urged to contact the Federal Trade Commission or your state attorney general, according to experts. And if the debt collectors are found guilty, they can face big fines.

How To Protect Yourself From A Debt Collector is a post from: Thistle Debt Consolidation

Retirement Readiness and Your Credit Score: 3 Things of Which to be Aware

The impact of credit scores on access to credit, housing, credit card availability, financing, and employment prospects has received considerable publicity; however, little attention has been to the effect of credit scores on retirement. Credit scores are an important aspect of any type of financial planning, and that includes retirement planning. In addition, credit scores are good indicators of financial health.

The fact is that whether you know it or not, your credit score can seriously affect your retirement readiness:

1. Low credit scores tend to reflect too much debt: Debt is a serious roadblock to a comfortable retirement. Your debt-to-credit ratio, also called your credit utilization ratio, refers to the amount of debt you have versus your available credit (i.e. spending limit), and it is a major factor in a low credit score. If you have too much debt and retirement is approaching, it may be better to put off retirement until you are in a better financial position. Too much debt weakens your cash flow and it takes away from your other goals, such as paying off your mortgage before retirement or retiring in general. In addition, having too much debt could indicate that you need to curtail your spending habits before being put on a reduced income, as is typical in retirement.

2. Low credit scores mean higher interest rates: Low credit scores also mean higher interest rates, which mean that, on a large item (e.g. mortgage), you can expect to pay thousands, if not hundreds of thousands, more than someone with good credit. Even if you think that you can afford the bill now, what happens when you cannot, such as a sudden job loss or a forced retirement. By improving your credit score, you could put the money you are currently spending in interest toward your retirement, making it that much more comfortable.

3. Low credit scores mean less pay: Low credit scores tend to mean less pay as well. Not only do companies use credit scores as screening tools for hiring purposes, but they may also use them for promotion purposes, meaning that your low credit score could cost you the proverbial “corner office” and the additional income that comes with it.

Man Trying To Collect Thousands In Debt From Real Housewives Star

Daniel Aguilar says one of the stars of the “Real Housewives of New Jersey” owes him thousands of dollars. Aguilar told reporters that he was not harassing Danielle Staub in an attempt to get his money, he was simply working as a debt collector. “I am not threatening her,’’ Aguilar told NewJersey.com. “I don’t want her hurt. I don’t want her dead. I want her alive because I want my money.’’

But Staub saw Aguilar’s recent phone calls differently. She filed a report with her local police department describing Aguilar “as a co-defendant from a case that happened almost 30 years ago.”  Staub told authorities that he made more than 50 phone calls to her in one day telling Staub that she owed him $15,000 “and that he wasn’t going to stop calling until he received the money,’’ the police report states, according to NewJersey.com.

According to reports, a police detective called Aguilar and told him to stop calling Staub. He told Aguilar to contact Staub through her attorney. Aguilar told the officer that Staub owes him $100,000.

Man Trying To Collect Thousands In Debt From Real Housewives Star is a post from: Thistle Debt Consolidation

Credit Management Tips for Small Business

Small business owners need to be good at credit management because, usually sooner than later, some form of financing will be necessary to grow the business. Small businesses often start out in the form of an individual offering a product or service that he or she performs personally, then may expand to include the work of several people; however, as soon as the scope of the company exceeds that level, new office space, equipment, advertising, etc. all become necessary expenses.

Most businesses will need to borrow money to take the next step in their growth and just like individual consumers, they need to have good credit scores. Strategic credit management is required as the business grows to get and maintain a beneficial credit record.

Businesses Need a Credit History

Lenders will review a loan application similarly to how they would look at a personal loan application. They want to see that you have established a record of solid business credit management. Here are a few things that will provide credit management help.

• Existing Credit Record: Business credit reports are maintained by Experian and Equifax, who also report on consumer credit, but also by Dunn and Bradstreet. You never know which service a lender will use, so you need to have a record with all three.

• Vendor Lines of Credit: You’ll need to establish at least five lines of credit with vendors who report to the business credit agencies. Keep in mind that not all vendors report, so you need to make sure at least five of yours do.

• Credit Cards: You will also need to have three or more credit cards that report the business to the credit bureaus specified above. Business credit card companies that open the card without a Social Security number will be reporting on the use of these cards to the business account and use and management of the credit line will not impact your personal credit report (for better or worse).

• Business Loans: Getting a business loan starts to establish you as a creditworthy enterprise. Just as establishing personal credit often starts with a fairly high-interest auto loan, business credit can be built up by getting a small loan and making timely payments. Bigger loans at better rates will subsequently become available, assuming all your other credit management conditions are met.

Should Seniors Delay Retirement? Six Reasons Why The Answer Is Yes

According to US News and World Report, the Senate Finance Committee is discussing the future plans of American seniors. Those nearing retirement may want to postpone it for a while in order to help themselves and the country. Experts say if Americans can work longer they’ll have a dramatic impact on the economy, Social Security and, of course, their own personal financial situation. Here are six reasons why leaders are hoping seniors push off retirement.

It will Help Social Security: The more seniors who work past the age of 62 the healthier the Social Security system will be. According to research by Stephen Goss, chief actuary of the Social Security Administration, a ten percent increase in the labor force among those who are over the age of 62 would reduce Social Security deficits and add another year to the program’s life. Right now it’s estimated to dry up by 2037, but more seniors working would push that to 2038.

It will Help Influence Young Workers. Some employers believe that the longer older workers stick around, the better. They’ll have a positive influence on younger employees. “The country needs them to work to sustain economic productivity and growth and to fill vital roles that demand their skills and experience,” Marc Freedman, founder and CEO of Civic Ventures and author of Encore: Finding Work That Matters in the Second Half of Life, told US News and World Report.

It will Help Communities. If seniors delay playing Bridge and watching The Price is Right, they’ll have more time to help others by taking on jobs in public service of non-profit areas.

It will Help the Economy. If seniors work longer they’ll have more money. And the more money they have the more they are likely to spend which helps the economy. “An increase in the number of these workers would increase federal and state income tax revenues,” Senator Max Baucus, a Montana Democrat, told US News and World Report.

It will Offer Balance. Working later in life doesn’t have to mean putting in long hours at a job you don’t like. Seniors will be able to find balance in life by gradually transitioning into retirement. “Workers can reduce their hours of work at their principal job or work only seasonally. Their current firm can rehire them after they have retired for a period of time,” Baucus told US News and World Report. ”The traditional view of retirement as a permanent and complete exit from the labor force and from a full time job held since middle age does not describe most workers today,” Nicole Maestas, an economist and group manager at RAND Corporation, told reporters. RAND statistics show that one out of four 65-year-olds are self-employed.

It will Give Seniors Financial Security. Recent studies show that more Americans will run out of money during retirement. But postponing retirement means a bigger earning potential and less of a chance that you’ll actually run otu of money. “Financial planners are increasingly advising their clients: The best way to rescue personal finances is to work a few years longer,” Freedman told US News and World Report.

Should Seniors Delay Retirement? Six Reasons Why The Answer Is Yes is a post from: Thistle Debt Consolidation

Five Indexing Methods and their Effects on your Savings

Your savings is an important element of your financial situation. The higher your level of savings, the better you can handle an unexpected expense (e.g. furnace breaks), maintain a certain lifestyle in retirement (e.g. yearly trips to Europe), and deal with a major financial emergency (e.g. job loss). However, when you put your savings in an indexed account, such as an annuity, it is important that you understand the details about how that type of indexing will affect your savings.

There are five basic types of indexing:

Point-to-point (or European) Method: The point-to-point method of indexing is the simplest method of indexing to calculate. It simply divides the value of the index on the maturity date by the value of the index on the origination date and subtracts 1 from the total. This method completely ignores fluctuations in the index, a fact that can be a draw or a drawback. Indices can fluctuate wildly from one day to the next; as such, the difference of a day could cost you several percentage points in your return.

Asian Method: The Asian method seeks to mitigate the risk of the point-to-point method by considering the value of the index at several points around the origination of your account and several points around the maturation or expiration date. Some companies go so far as to offer an average of the entire year prior to maturity as the maturity value of the index.

Look-back (or High-Water-Mark) Method: The look-back or high-water market level is another attempt at minimizing the risk of the point-to-point method. Accounts that follow this indexing method record the value of the index at the anniversary date of your account and, upon maturity, takes the highest recorded value (amongst those taken on the anniversary of the account) as the maturation value and calculates your return accordingly.

Low-Water-Mark Method: Alternatively, the low-water-mark indexing method takes the value of your account on each anniversary and uses the lowest recorded number as the origination value of the index and determines your return from there.

Annual Reset Method: The annual reset method is the most complicated, but it can offer the greatest return if the index grows steadily. What happens with this method is the value of the index is taken at the beginning and end of a 12-month-period, starting with your account’s origination date, and the one-year anniversary and continuing with the value of the index at the one-year anniversary compared to that of its two-year anniversary. Any increases are recorded and decreases are ignored. Your return at the maturity of your account is the total of the recorded increases. In this way, you are able to get compounded returns.

New Study: More Americans Likely To Run Short Of Money In Retirement

A new study shows more Americans are running out of money in retirement. In the 2010 Employee Benefit Research Institute Retirement Readiness Rating, research showed dramatically more Americans are likely to run short of funds after one or two decades of retirement. Sixty-four percent of Americans in the two lowest income levels prior to retirement will be out of money after ten years of retirement, according to the study.

But perhaps more surprising is the fact that after 20 years of retirement, nearly a third of those in the next-to-highest income level will find their finances tapped. And one in ten of those in the highest income level will experience financial drain after 20 years in retirement. The study says Baby Boomers, on the brink of retirement, are at risk of running out of funds at some point during retirement. They may not be able to afford medical expenses and basic needs. “As the private-sector retirement plan system evolves from a largely paternalistic one to a system in which workers must make their own decisions, policymakers need to understand what percentage of the population is likely to fail to achieve retirement security under current conditions,” said Jack VanDerhei, principal author of the study, in a news release. “Even more important is to identify which of those households still have time to modify their behavior to achieve retirement security, and how they need to proceed. This analysis demonstrates that in ways we have not seen before.”

New Study: More Americans Likely To Run Short Of Money In Retirement is a post from: Thistle Debt Consolidation

Is the Tax Refund Loan Obsolete?

A tax refund loan is a loan made against any potential return coming your way after filing your federal and state income taxes. Most tax loans are made when you file your return with a tax preparation company such as H&R Block or Jackson Hewitt but funded by a third-party not affiliated with the tax preparation company. These loans allow you instant access to the money that will be refunded to you by the IRS without having to wait for your return to be processed.

Income Tax Loans in the Press

Income tax loans have come under a great deal of scrutiny in the past year, as agencies such as the National Consumer Law Center and the Consumer Federation of America have questioned the ways in which the loans are made. The agencies allege that IRS tax loans are targeted at low-income populations and often carry exorbitant fees that aren’t made transparent at the time the loan is made. According to these agencies, these loans are often hastily generated and the full extent of the fees are not disclosed, leaving naïve consumers holding the bag for huge amounts of charges to access money that is rightfully theirs.

Is the Refund Anticipation Loan Obsolete?

The sheer number of consumers standing in line to get a tax loan may be dwindling. Now that most returns are filed and processed online, refund checks arrive from the IRS in a matter of weeks. If a consumer elects to have the funds direct deposited, the money can be in his bank account within three weeks. More than 95 million taxpayers chose to e-file their taxes in 2009; of those who chose direct deposit, the majority received their funds in 8 to 15 days.

For the fourth quarter ending April 30, 2010, Jackson Hewitt reported it could not secure a lender for their refund anticipation loans for 2011, as the bank who originally handled their loans terminated the contract. H&R Block, who was anticipated by most in the business world to scoop up the benefits from the Jackson Hewitt fallout, failed to do so. H&R Block blamed this failure on a lack of clarity surrounding settlements. However, these signs may well be pointing to an overall trend: that anticipation loans are becoming more and more obsolete. Most consumers are willing to wait just a few weeks to have their refunds without having to pay the fees associated with refund anticipation loans.

UK Residents Willing To Fund Summer Travel With Debt

UK Residents Willing To Fund Summer Travel With Debt is a post from: Thistle Debt Consolidation

Credit Card Traps

The CARD Act was designed to protect consumers from credit card practices that left many people blindsided and on the wrong side of the balance sheet. For years, credit card companies were able to raise interest rates and assess fees solely that their discretions. While the CARD Act included many rules that would limit these behaviors, such as requiring credit card companies to give consumers a minimum 45-day notice of any changes to their accounts (e.g. interest rate increase) and at least 21 days to pay their credit card bills, several credit card traps remain of which you should be aware:

INTEREST RATES: Credit card companies can still raise your interest rate, even if you make all your payments on time; if you have a fixed-rate credit card, the only requirements for doing so is that they provide you with 45 days advance notice and you have had the card for more than a year. In addition, if you have a variable rate interest card, it can happen even easier. While the credit card company still has to provide you with 45 days notice, your variable credit card interest rate is likely tied to an interest-rate benchmark; when it goes up so will your interest.

CREDIT LIMITS: Further, credit card companies can still cut your credit card spending limit or even close your account, both of which have serious ramifications on your credit score. Credit card companies explain this practice by advising that they routinely reevaluate their credit cardholders’ accounts and adjust limits based on the customers’ ability to repay. This may sound benign enough, but if your income is constricted (e.g. job loss, decreased business revenue/earnings), do not be surprised if your credit limit drops from $4,000 to $500, if your account is not closed altogether.

RAISING FEES: Lastly, while the CARD Act caps the fees a credit card company can charge at $25, there are many other ways credit card companies can levy fees. Many credit card companies are assessing annual fees while others are raising balance transfer fees, cash advance fees, and/or foreign transaction fees. In addition, credit card companies are still free to invent fees.

Regardless of your specific situation, there are two things you must do to prevent falling into one of these credit card traps. First, read your mail. Before your credit card company can change the terms of your contract in any way, they have to notify you in writing, which means by mail. Second, have a contingency plan for what you can do if your terms swell to an unfavorable point. Make sure that you keep your balances as low as possible. Also, keep at least one other credit card available, just in case.

Complaints About Debt Collectors Skyrocket

Debt collectors seem to be getting more harsh in attempts to collect money from those who aren’t paying up. According to consumers, debt collectors are making harassing phone calls, using abusive language, and even threatening physical violence with hopes of squeezing money out of struggling people. “The American consumer is really hurting and collectors are having to fight harder to get money,” Robert Andrews, a senior analyst specializing in the debt industry at research firm IBISWorld, told CNN Money.

More people are filing complaints against debt collectors. Harassment complaints jumped by 50% to 67,550 in 2009, according to Federal Trade Commission statistics. Estimates show complaints are on track to increase another 13% this year. So what are the top complaints? People say debt collectors are calling, and calling, and calling. Repeated calls is the biggest form of harassment and according to reports it’s not uncommon for collectors to call back-to-back, day-after-day for weeks, months and, in some cases, years.

Debt collectors seem to be using more offensive language. Complains of obscene or abusive language jumped 35% last year. According to CNN Money, a New York woman wishing to remain anonymous told reporters that when she stopped answering her phone debt collectors called her sister, ex-boyfriend and even her husband’s ex-wife’s mother. “This guy was out of his mind and he kept calling and calling, telling me ‘you better talk to me, you deadbeat,’” she told CNN Money. “He was very threatening and the whole thing was just really unsettling — it made you wonder who was going to show up at your door.”

But are debt collectors actually using physical violence? According to the FTC they are. Complaints of collectors threatening and using violence doubled to more than 2500 cases. Collectors are also using illegal tactics to try to get money. These include calling before 8am or after 9pm and telling a third party about a consumer’s debt. Under the FTC’s Fair Debt Collection Practices Act these tactics are illegal and have been since 1977. “Certainly if debt collectors are being more aggressive, they shouldn’t be, but it’s not fair to characterize the actions of debt collectors as the only reason why there is an increase in complaints — they’re not fully to blame,” Mark Schiffman, a spokesman for The Association of Credit and Collection Professionals, told CNN Money. “There’s a growing industry of consumer attorneys and savvy consumers who have learned that they can sue a debt collector fairly easily and collect very easily.”

Consumers have several courses of action, including taking a debt collector to court for harassment. They could win settlement money for damages like lost income and medical bills. Even if there are no damages, according to CNN Money the victims may be eligible to receive up to $1000 and reimbursement for court and attorney fees.

Complaints About Debt Collectors Skyrocket is a post from: Thistle Debt Consolidation

How to Get a Car Loan

If you need to know how to get a car loan the right way, you are not alone. Many consumers allow car dealerships to bully them into accepting less than favorable terms just because it is easier to follow their leads. However, if you spend a few minutes acquainting yourself with the basics of car financing, you may be surprised just how well you can do.

1. PARTS OF THE LOAN: First, make sure you understand the parts of a loan. There are four basic components:

a. Approved amount: This is the maximum amount your lender will give you. Know how much you can spend before you ever take a test drive.

b. Vehicle sales price: This component is important because most lenders will not grant a loan for an automobile that is selling over its blue book value, regardless of what after-market extras the car may have (e.g. sound system).

c. Term: This is the length of the loan (e.g. 60 months). Keep in mind that the longer term you accept, the lower your monthly payments will be but you will pay significantly more in interest.

d. APR: APR stands for annual percentage rate, and it represents the additional amount you will pay over the sales price throughout the loan term. Remember that just because one lender is willing to provide a certain APR, another lender could provide better (or worse) terms. Always shop around.

e. Fees: While shopping around, make sure to pay attention to the APR the lender will assess, as well as the fees. Some lenders will charge origination fees that can completely erode any benefit from a low APR.

2. SOURCES OF CREDIT: As you consider your financing options, make sure that you look outside the box a bit. Try credit unions as well as banks. You may also want to try online lenders, the dealership, or the manufacturer. Each will offer slightly different terms, so make sure that you examine each offer carefully.

3. CREDIT SCORES: If you have bad credit or you just want to take care to preserve your credit score, make sure that you limit the number of formal loan applications you make. If you apply for several loans at the same time, it can have a negative effect on your credit score.

Tuesday’s Twitterer To Follow: @ShiftYourHabit

Wondering who to follow in the big wide world of Twitter? There are plenty of great Twitterers out there tweeting about money, debt, and finance– the topics we know you love. So every other Tuesday we’ll be  highlighting a Twitterer to follow. This week we’re turning the spotlight on @ShiftYourHabit.

The Twitter account @ShiftYourHabit is actually operated by New York Times Bestselling author Elizabeth Rogers. Her new book Shift Your Habit is available in bookstores now. The idea is simple– Rogers believes that saving money and saving the earth go hand in hand. She offers hundreds of tips that will significantly cut your costs and your carbon footprint at the same time. She offers up plenty of these tips on a regular basis through her Twitter account.

Many of the money tweeters out there only provide general tips, but you’ll quickly see that @ShiftYourHabit is different. Just about every money saving suggestion comes with a dollar amount. So you can see how quickly shifting your habits will make a big impact on your budget. You’ll see how simple tasks (disabling half the bulbs in your multi-bulb fixtures) can save you more than small change ($90 in a year!).  And that can be a big challenge for those of us looking to cut our spending. It’s hard to see the big picture when we’re talking about cutting out our $4 lattes because, after all, it’s only $4. But by making small shifts to our habits we can make a big impact financially and environmentally. So take the small step and start following @ShiftYourHabit.

Tuesday’s Twitterer To Follow: @ShiftYourHabit is a post from: Thistle Debt Consolidation

What Does Finance Reform Mean for You

As Congress prepares to finalize the largest series of financial regulations since those introduced after the Great Depression (1929), you would be remiss if you did not wonder how the finance reform will affect you. The new legislation, commonly referred to as the Dodd-Frank Act, is more than 2,000 pages long and covers everything from debt card purchases to complex financial securities.

The following list is a brief summary of some of the primary ways the Act will affect consumers:

Consumer Financial Protection Bureau: First, a new agency would be developed that would be centered on making sure that consumers are protected from unsavory business practices, such as predatory lending, hidden credit card fees, sudden interest rate increases, etc. It would be housed in the US Federal Reserve and would include home loans, student loans, credit cards, payday loans, and the like.

Oversight Committee: In addition, an oversight committee would be established. The purpose of this committee would be to monitor the US financial system and to advise Congress when a company that was too integrated into the US economy was at risk and to propose a course of action. If the government so deemed, it would have the power to bolster the company or liquidate it.

Mortgages: Under the new legislation, consumers with adjustable rate mortgages would be excused from any prepayment penalties. Further, homebuyers would not be able to take out mortgages without first providing documentation of income. In addition, mortgage brokers would no longer be able to receive incentives for pushing a certain loan, or certain type of loan, over another.

Credit Agencies: The new legislation would also require that any agency that advises consumers would have to register with the Securities and Exchange Commission. If the agency was found guilty of providing false or negligent advice, it would be legally liable for any losses incurred thereby.

Fiduciary Duty: To this end, financial advisors and agencies would also be held to a greater standard of fiduciary duty; this means that they would be prohibited from advising you of what is in their own best interest, but rather would have to provide you with sufficient information to enable you to make the best decision possible.

Debit Cards: Banks would also be prohibited from charging merchants more than a certain amount as a fee for accepting debt cards. It is estimated this change would save merchants billions in payments.

Credit Cards: The new legislation would have requirements for credit cards as well; specifically, credit card purchases would be subject to a $10 minimum purchase. In addition, some organizations, including governments and colleges, would be able to set maximum amounts for credit card payments.

Is Debt Consolidation Right For You? Things to Consider First

Debt consolidation is a tempting thought. You could have all your loans, bills, and other debt obligations reduced to one monthly payment, possibly lower than you pay now. However, debt consolidation is not right for everyone. In fact, it could work against you in the long run. Before you consolidate your debt, here are some things to consider first:

YOUR SPENDING HABITS: Before you take out a debt consolidation loan, make sure that you are ready and willing to amend your spending habits first. For example, more than 70 percent of Americans that take out a loan to consolidate debt end up with more debt than they started with in less than two years (in addition to the debt consolidation loan). These people did not amend their spending habits and ended up in a situation worse than they started with.

YOUR CREDIT SCORE: In addition, remember that debt consolidation can affect your credit score. While this will not happen if you rely on a home equity loan for your debt consolidation needs, any other form of debt consolidation will impact your credit score, in some cases severely. If you already have a low credit score, this “impact” could bring your credit score below a threshold where “good terms” meets “don’t bother.” Research your credit score and make sure you understand how your actions can impact it before you make a decision on debt consolidation.

YOUR DEBT: Depending on the debt you hold, you may have many more options than simply consolidating your debt. For instance, if you are having a hard time repaying federal student loans, spend time researching the federal Income Based Repayment (IBR) program. You may be able to pay your student loans in an amount proportionate to your income with forgiveness after 25 years (10 years if you are employed by a public service agency). Likewise, if the problem is simply that your credit card balance is out of hand, consider opening a card with a low introductory rate and transferring all you open account balances there or ask your credit card company to freeze your account for a limited time. Sometimes a loan simply is not necessary.

Home Buyers Enjoy Lowest Mortgage Rate In Decades

Home buyers are scoring mortgage rates that are around the rates their parents or even grandparents may have locked in. Those with job security, good credit scores and cash on hand will be able to take advantage of some of the lowest mortgage rates since the 1950s. The average rate for a 30-year fixed mortgage dropped to 4.69 percent this week, according to the Associated Press. Previously, the low was set in December at 4.75 percent.

The impact that these lower rates will have on the economy isn’t expected to be much. “As long as prospective buyers are still concerned about their jobs and financial well-being, many will be reluctant to take the plunge, even though affordability has never been better,” Greg McBride, senior financial analyst, told the AP.

This news may seem positive, but it’s also got a negative side. Low interest rates aren’t doing much to help Americans who are trying to save money. They’re earning very little with money being held in savings accounts. These low rates won’t even boost refinancing activity, according to experts. Most people that are eligible have already done it said Michael Fratantoni, according to the Associated Press. “Rates haven’t dropped low enough to justify a second refinancing,” Fratantoni said. “The group of people who could potentially benefit is much smaller than it was 15 months ago,” he said.

Many of those who may want to refinance, can’t because they owe more on their homes than what they’re worth. New government programs are trying to change that but fewer than 300,000 homeowners have participated, which is a small portion of the 15 million Americans who are underwater on their mortgages. “It’s not the desire to refinance. It’s the ability to refinance,” Chris Brown, a loan officer with Trinity Mortgage Co. in Orlando, Fla, told the AP.

Home Buyers Enjoy Lowest Mortgage Rate In Decades is a post from: Thistle Debt Consolidation

Tips for Successful Debt Elimination

Debt elimination has become a major aspect of achieving financial well-being. Record unemployment levels and years of an unstable economy have resulted in many people being deep in debt and having trouble keeping up with payments.  Getting out of debt now is harder than ever, but it can be done. Here are some things to keep in mind:

Take control of you spending: When times were good, many of us got in the habit of using credit cards to buy what we wanted, since we would be able to pay it off before long. That’s no longer the case, so a change in how we think about money is needed. Don’t spend money that you don’t have. Work out a budget and practice the discipline of waiting until you can pay cash before you make a purchase.

Don’t try for a shortcut: There are a lot of companies out there claiming that if you leave it to them, your debt will go away. They imply that they know about special government programs and have insider connections to credit card companies. Don’t buy it, and don’t pay anyone to “take care of” your debt unless you have really checked them out first.

Don’t wait for a bailout: The government has put a variety of programs in place to stimulate and support the economy, but they do not have the kind of money it would take to pay off personal debts. If you are in trouble, start dealing with it as soon as you see it happening. It’s often easier to rearrange payment plans than it is to dig yourself out of a financial hole once you get behind.

Don’t let your ego keep you from getting help: Bankruptcy used to be taken to mean that you were irresponsible, but now it just means you had to file for bankruptcy. A home equity loan is a classic example of a debt consolidation loan, and there has never even been a stigma attached. You’ll have to discuss some pretty personal business, but really it doesn’t matter what people think. Take care of yourself.

Make sure you only deal with reputable lenders: This is harder than it sounds, since you will be shown glowing testimonials by any business that is courting your money these days. They look fantastic and sound so very real, but keep in mind that they are designed by advertising professionals right along with the ads for the breakfast cereal that will put wings on your feet. That’s not happening and neither are the money miracles touted in the ads. Check with the Better Business Bureau, Chamber of Commerce, and any other organizations that may have gotten reports from other consumers.

Look for non profit debt consolidation help: These may be your best bet for getting legitimate help that won’t cost you a bundle, but bear in mind that non profits are supported by donations and are influenced by their donors, which may include banks and credit card companies, so shop around even among the non profits to find one you are comfortable with and who’s program makes sense to you.

Apply for a personal debt consolidation loan: If you have cut your spending but are just not able to keep up with payments on your existing debt, consolidating it into one loan may be the solution. Do some research to see if that option might be for you.

California Home Equity Loans

A study last year showed California home equity loans and other forms of loan modification programs in California were the major cause of homes being lost to foreclosure. This finding was surprising because it had been previously assumed that the home loss statistic was attributable to California mortgage loans being taken out when homes were at near-peak prices prior to the real estate crash. The California legislature is currently working on regulations that would make it easier for homeowners to get out of their underwater mortgages, including second mortgages.

This kind of legislation counters the intent of a measure that is making its way through the national House of Representatives at present as an attachment to a bill regarding how the FHA manages its loan business. There is growing concern in Washington that more and more underwater homeowners will simply quit paying on their mortgage loans that are for more than the property is worth, regardless of their actual ability to make the payments.

The measure would modify the bill to make homeowners who voluntarily walk away from their mortgage obligations ineligible for FHA loans. The idea is to make sure people who choose to default for personal gain do not benefit from a government subsidized loan program to buy another house now that prices are so much lower.

What the California legislature is trying to do is to get more protection for homeowners who go through a foreclosure. Currently, banks can’t make claims on the borrowers other assets to try to get their money back on a foreclosed property. The new rule under consideration would include second mortgages, such as California home equity loans, so it would be more difficult for lenders to recover those as well, with the exception of cash-out refinancing.

If the study indicating that California home equity loans and other refinance vehicles were the major cause of borrowers finding themselves underwater holds true for other states, it provides a real conundrum. If over-borrowing on second mortgages is what has caused so many people to be underwater across the nation, then even where prices did not crash as badly as they did for those with a California home loan, many more borrowers will be underwater and may also be inclined to let the house go, rather than to continue to pay more than it is worth, which will lead to further losses for banks.

Naturally, both legislative bodies have economic stability in mind. Which approach will have the best effect remains to be seen.