Three Reasons Why You Need A Secured Credit Card

There are many reasons why a secured credit card can benefit you, especially, if you have little or no credit history. A secured credit card is a credit card that is backed by some sort of cash deposit. In order to qualify for a secured credit card you need to send cash to card issuer as collateral. This cash remains in escrow until further notice. If you default on your payments, the card issuer will use your deposit to pay the outstanding balance. However, if you handle your account responsibly you will reap many benefits. Listed are three ways a secured credit card can help you:

1. A secured credit card can build your credit. If you have no credit or bad credit, a secured credit card can help you build up your credit. Should you use it responsibly and make the payments on time every month, this will be reported to all three credit bureaus. In time your secured card could even turn into an unsecured credit card because you have built up history with the card issuer.

2. Everyone needs some form of credit card to survive these days. In fact, you can not rent a car without a major credit card. Furthermore, credit cards are also used to make purchases online. There are a few processors that can process checks online, however, for the most part, if you do not have a credit card you will be limited when making purchases online.

3. The deposit in your account will earn interest. So long as you make all your payments on time, the deposit that you sent the card issuer will earn interest for you. This money will sit in a bank account that you will be unable to touch earning interest. This interest earned will also offset your interest paid, resulting in overall savings for using your credit card.

There are many ways that a secured credit card can help out anyone. The most important benefit of a secured credit card is the effect it will have on your credit. Should you use your card responsibly month after month, it will be reflected in your credit score. The better your credit score is the lower interest rates you will pay for future loans. Should you fail to pay the card as per the agreement, you will loose your deposit. Most secured credit card issuers will issue lines of credit between $500 and $10,000. The amount that you deposit will reflect your credit limit. A $1000 deposit will get you a $1000 credit line. The Applied Bank Visa Gold Card is an excellent choice for those seeking a secured credit card. Click on the card image below and apply online now.

Identity Theft on the Rise: Visa reports another Security Breach


If you are one of the millions of Americans who uses a credit card, be aware that identity theft is on the rise. According to visa another major credit card processing company has reported a security breach in its system. Visa is not saying who the credit card processing company is, however, it is reporting that a substantial amount of information was stolen. Furthermore, the breach does not only affect a particular brand of Visa credit cards. All brands have been subjected to the security breach. Officials are saying that only credit card numbers, PAN numbers and expiration dates were stolen. They have indicated that social security information and encrypted PIN information was not stolen.

Both Visa and MasterCard are in the process of identifying those banks whose credit cards were affected. Individuals should check over their statements carefully to make sure that there are not any unauthorized charges.
I know I am guilty of not scrutinizing my credit card statements very well. Today’s worldwide economic crisis has caused identity theft to be one of the most committed frauds in the United States. Thieves are very creative as to how they will steel information. Thieves will go so far as looking through dumpsters or find more sophisticated ways of stealing information through the Internet. Do not reply to suspicious emails. I have on more than one occasion received unwanted emails claiming to be from Bank of America, the IRS, and the latest one I got today claimed to be from JP Morgan/Chase. These emails claim that they need information to update your account. They will send you to an authentic looking website where you are supposed to fill out the form. Do not ever give these people information. First of all, large corporations and the Internal Revenue Service do not ever solicit information via email. Cyber thieves are looking for any method that they can to steel information such as bank account numbers, credit card numbers, social security information and even your state driver’s license information.

I recently wrote a blog entry about an Internet customer wanting to buy a large and expensive amount of goods from my online website. He was claiming to be a priest from Ghana, Africa making a purchase for his church. Although I was not surprised that a church would want to purchase my products, it did surprise me that he was wanting such large quantities, did not give a phone number and send me four different credit card numbers to make the purchase with. As soon as I tried to process the cards, they were declined. Furthermore, the address that he gave me for the billing address could be found on neither Map Quest nor Google maps. I knew that I was dealing with a thief and immediately called the credit card issuer.

If you feel that you are a victim of identity theft report it to your credit card issuer immediately. The Fair Credit Billing Act of 1975 protects us as consumers from these types of frauds. You have between 30 and 60 days to dispute the charge with your credit card issuer. More than likely, the card issuer will credit the account and investigate the charges. However, if you are looking to take a more pro-active role than a reactive one than I highly suggest that you click on our sponsor add below.

American Express Offers $300 to Cardholders to Close Accounts

American Express has found a polite way to close cardholder’s accounts. American Express is offering select customers $300 to pay off their balances and close the account. This move does not surprise me as credit card issuers continue to look for ways to limit their exposure. Since the collapse of Lehman Brothers in September of 2008 credit card issuers have slashed credit limits, limited marketing efforts and increasing interest rates and fees. These select cardholders have until February to decide if they want to participate in the offer. Furthermore, they are allowing those who choose the offer until March or April to close their accounts. American Express is supposed to then give you a $300 pre paid American Express debit card.

American Express stock has lost almost one-third of its value since last year. Recent unemployment has caused credit card delinquencies to rise more than forecasted. In order to expand its business, American Express has drifted away from catering to mostly affluent clientele. They have broadened their credit card portfolio to include loans to riskier individuals. This strategy has backfired for American Express due to the current economic downturn. American Express is looking for ways to save money and limit their risk exposure.

Every card issuer from J.P. Morgan/Chase to Citigroup has slashed credit card limits. This in turn has hurt our economy very much. Consumers with have had less money to make purchases from everything cars to television sets to video game consoles. The TALF (troubled asset loan facility) program is supposed to boost consumer credit. This bailout plan is supposed to give investors $1 trillion to purchase consumer asset backed securities. Since the collapse of Lehman Brother’s investments in asset backed securities have almost disappeared. The TALF plan is supposed to give investors confidences to once again invest in these types of securities.

In my opinion, American Express is looking for polite ways to cancel their less desired customer’s credit cards. These people might be less creditworthy and more susceptible to becoming delinquent with their bills. A $300 credit voucher certainly gives someone an incentive to close out his or her account. This is certainly a “nicer” way to cut someone’s credit. Instead of involuntary closing accounts like other credit card issuers have, American Express is giving certain cardholders a big incentive to closes out their account. This will certainly help out American Express’s public relations.

The last thing the country really needs is more slashed credit limits. The credit crisis has caused all kinds of havoc throughout our economy. As consumers, we need credit to continue to make purchases as we did. Businesses need this money to pay employees, who in turn spend money. The bottom line is less credit means less purchases. As purchases decrease, jobs will continue to disappear. This starts a viscous cycle that without government intervention will continue to spiral.

Let’s face it, sometimes life can get complicated. At times we can get lost in all the complexities of day to day living. One of the things that can complicate our lives and can add some unneeded stress to our lives is our finances. Managing our home finances can be challenging at times and if you add in all the other things that we have to deal with on a day to day basis you can really have your hands full. However, there is help for the ones that are weary with the cares of life and who stand in need of some help in managing their finances. Quicken has some great tools to help you manage your home finances.

One of the key components to managing our finances is learning to live within a budget. But sometimes it can really be a challenge to keep up with all the expenditures that you have going out. This is where Quicken can help you with your home finances, Quicken financial software can help you keep track of your money, with Quicken you can know how much money you have going out in relation to how much you have coming in.

With Quicken financial software you will have the tools that will enable you to keep track of your finances so that you will be able to live within a budget. Tools like an electronic checkbook that functions like your own personal paper checkbook. This can really be beneficial in managing and organizing your day to day finances.

Another great tool that Quicken offers to help to you with you home finances is the Web connect feature that allows users to download their banking and their credit card transactions into Quicken. This can help you see and realize exactly where your money is going and where you stand financially.

Along with these great tools to help you with your finances, with Quicken you can generate reports with just the click of a mouse. These reports can help you to keep track of your spending and help you to create and manage a budget. With Quicken you can also map out a plan to get out of debt and plan your financial future.

Quicken can also help you to put your bills in order. With Quicken financial software you can view your bills and know when they are due. This can help you to have a plan and a budget for paying your bills. This can be a tremendous help to you in this busy, madcap world that we are living in.

For money management, this financial software can help you to put your financial house in order. Quicken can help you to monitor your spending, manage your bills, keep you up to date on your bank transactions and help you to create a budget. If you are having trouble managing your finances, then you might want to go to the Quicken website and check it out for yourself. Quicken financial software might have just what you need to help you with your home finances and also help you not only with your spending; but help you to save money as well.

The Obama Housing Rescue Plan

The Obama Administration unveiled yesterday its program to help the housing market. This mortgage prevention program is aimed at helping stop the foreclosure process. The mortgage program is supposed to allow people to modify the terms of their mortgages and give the banks and incentive to do so as well. The administration’s efforts includes a plan to help refinance homeowner’s who have little or no equity in their homes. One of the main goals of the new program is to offer major incentives for lenders to work with potential foreclosure victims. The problem is that people are approaching to their lenders with problems but are turned away and denied help. This has forced many people into foreclosure. There are many people who are opposed to the Obama administration’s plans to restructure potential mortgage holders who are at risk for foreclosure.

As I watch the financial news I am listing to people complain all day about what is not going to work and what needs to be added. People are complaining that are government is turning socialist. The American public is tired of helping people who some feel do not deserve any help. The truth is that 92% of American are actually paying their mortgages on time. I am also one of those individuals who pays his mortgage on time every month. I bought my condominium about four years ago at the boom of the housing market. I put 20% down and made sure that I got a fixed mortgage as opposed to a variable rate. I am not thrilled about having to help those 8% that might have gotten themselves into a home that they can not afford. However, I am tired of watching home values decrease in value and the credit crisis continue to destroy our economy. As an American, I stand behind our leaders and wish them all the best with the tough decisions that they have been forced to deal with. Why did these supposed financial gurus not figure out that our housing market was headed for disaster? The truth is no one really knows what is going to really work or not. Warren Buffet, the greatest investor of all time, supports our new government. I trust what Mr. Buffet has said in the past about Obama and his team of financial advisors. Instead of looking for ways of why the stimulus program or the mortgage program will not work, we should be looking for ways to make it work.

My partner and I started this credit card comparison site in the midst of the worst financial recession since the 1930s. The income that we have made from this website has been minimal. However, I do believe that the economy will rebound soon. The previous presidential administration did very little to prevent the worst financial meltdown of the 21st century. In September of 2008 the Bush administration allowed for the collapse of Lehman Brothers to take place. The credit markets and the economy has not been the same since. We have suffered more by not preventing Lehman Brothers from going broke than we would have by bailing them out. The heart of the financial crisis is the troubled mortgage industry. It is the goal of our current administration to prevent more foreclosures and to stabilize housing prices. I would prefer that we take action now and try to Band-Aid the problem then to let the wounds cause more problems.

When will the economy get better?

The credit crisis has affected everyone in the United States and is now spreading around the world. The Obama Administration just signed a $787 billion stimulus package that is supposed to end this economic downfall. The only problem is that Wall Street does not seem to respond to the news. The Dow Jones Industrial Average continues to fall despite all the efforts the government is making. Job losses continue to mount and government funding at the state level is drying up. Obama keeps telling us the economy is going to get worse before it starts to get any better. The American people, including myself are tired of hearing the same speech and continue to watch the economy further deteriorate. The biggest question on my mind and everyone else’s mind is when the economy will get better.

I do not believe that the economy will get any better until the government gets the housing crisis under control. The losses from the housing market continue to bog down the balance books of our nations largest banks. Bankers are afraid to lend more money because of the massive amounts of losses that they are experiencing in the mortgage industry. The sub prime mortgage market has damaged the economy beyond control. The government should buy up these “toxic assets” from the banks and work and figure a way to work with homeowner’s so that they can keep their houses. The problem is that many of these people have purchased homes that they simply can not afford. These people need to be flushed out of the market and replaced with homeowners that are able to keep up with the payments. Banks will be able to start lending money once bad assets have been cleared off their balance sheets. In the meantime, the government can hold onto the unoccupied housing inventory and sell it off as times get better. The people who could not afford their homes must become renters once again.

The other major factor affecting the economy is the lack of consumer credit available. Everything from retail sales to automotive sales has seen significant losses in sales volume since the credit crisis began in September of 2008. The problem is the lack of investors purchasing consumer backed securitized assets. The problems in the mortgage market have spooked investors away from these types of investments. The Obama Administration is supposed to unveil the TALF (Termed Asset Backed Loan Facility) to help unfreeze consumer credit. They have expanded this program from $200 billion to $1 trillion. Under the TALF program, the government is supposed loan money to investors who are going to purchase asset backed securities such as auto loans, student loans and credit card loans.

I am trying to figure out the TALF program but I do not completely understand how this is going to work. The only thing that I do understand is that the only way we are going to get this economy back in shade is to unfreeze the credit markets. The ability to sell these asset backed securitized investments on world wide market is going to be crucial. Unfortunately, the shenanigans of many an unethical mortgage broker has scared away investors from asset backed securitized investments. Once the housing market stabilizes investors will start to move towards these types of investments. It will be up to the Obama Administration to do anything possible stabilize housing and instill confidence in investment markets once again.

Security Breach at Wyndham Hotels Risks Customers Identities

A recent statement issued by the Florida Attorney General is warning Florida residents that a data breach at the Wyndham Hotels and Resorts may have put up to 21,000 residents in jeopardy of identity theft.

A spokesperson for Wyndham said that they reported the breach of security to the Florida Attorney General in December of 2008. Wyndham believes that someone had unauthorized access to customer credit and debit cards. Wyndham has already sent a letter to everyone in that database with a list of pre cautions that they should take. The measures include obtaining a free fraud alert from one of the credit reporting agencies.

IF YOU THINK YOU MIGHT BE A VICTIM YOU CAN CHECK YOUR CREDIT REPORT FOR FREE BY CLICKING ON OUR SPONSOR LINK BELOW !!

Use Your Driver’s License like a Debit/Credit Card

Imagine being able to use your driver’s license to pay for your purchases. This idea is has come to happen in the state of Texas. The fact is that 24 states make driver’s licenses with a magnetic strip on the back. National Payment Card Association, a Florida based company, has now launched a service that turns your drivers license into a debit card. The service basically links your driver’s license information back to your bank account. This makes it possible for you to use your license like a debit card and make purchases wherever you go.

The State of Texas has already been participating in the program at certain participating gasoline stations. Texas residents who want to participate need to create an account by registering at RollBackPrices.com. Being that I am a Texas resident, I think I am going to sign up for this service very soon. I always keep my drivers’ license in my car and sometimes travel without my debit card. This will make it very easy for me to fill up my vehicle. Customers must create a PIN (Personal Identification Number) that they will use for this service. Be careful not to let anyone know what your PIN numbers, since, National Payment Card Association will only be responsible for up to $50 in fraud. You probably also have some sort of fraud protection with your bank, however, I don’t know if they will cover purchases made with your driver’s license.

The company plans to soon expand into grocery stores and drug stores. This service is very beneficial to many people. Another feature that the company offers is an instant email every time your driver’s license based debit card is used. Paypal is another popular payment processing company that offers this feature on its debit card. This feature ensures that you do not forget what you have spent. If you check your email as often as I do, you will be able to easily keep track of your expenses. Make a separate folder in your email account for emails coming from National Payment Card Association and you won’t loose track of your emails. You can then start to examine your expenditures simply by referring back to old emails.

The huge competitive advantage that National Payment Card Association has over other credit card processing companies is the fantastic rates they offer. Most credit card processing companies charge their customers, a per transaction fee plus a small percentage of the total amount charged. National Payment Card Association charges a small fee of $.19 (nineteen cents) per transaction. That amount is much cheaper than the $.25 transaction fee plus a %1.5 processing fee. These savings are then passed on to customers, According to company spokesman. An Austin, Texas based gasoline station offers a $.10 discount per gallon for store customers that use their Texas drivers license to process gasoline payments.

American companies do not stop innovating the way credit/debit cards are processed. I wrote about the marriage of your cell phone with your credit cards in a previous article that on this blog. This feature would allow people to use their cell phones to process their credit or debit cards. The use of a driver’s license to process your payments is another very innovative way to make payments. I think this idea is going to become more widespread as more states start adopting the use of magnetic strips on the back of their drivers licenses. At some point this week, I plan to sign up for this service. Once I sign up and start using it for a while, I will let you all know if I like the service or not.


VISIT OUR SPONSERS AND GET A FREE CREDIT REPORT!!

Treasury Secretary Tim Geithner attempts to re spark Consumer Credit

Treasury Secretary Tim Geithner is about to unveil a plan that could possibly give consumers more buying power. This new bailout plan could cost more than $2 trillion. Geithner plans to use government money to start purchasing consumer credit card, auto, and student loan asset backed security investments. Geithner has explained that nearly half of all credit that is given to consumers and a small business comes from these asset-backed securities. Since the collapse of the mortgage market the sale of these asset-backed securities has been greatly reduced. Geithner has further said that the sale of asset backed securities has decreased $1.2 trillion between 2006 and 2008. This does not come as a surprise since the mortgage crisis started to unravel in 2006. The collapse of the housing market has affected the American economy in more ways than anyone had ever anticipated.

I recently read an article on the Internet about a city somewhere around the mid-west that has been severely hurt by the credit crisis. Unfortunately this town’s economy survived off of a large company that manufactured camping equipment such pop up tents, campers, etc. This was a family owned company started in the 1960s that thrived for many years. Prior to the credit crisis the company could not keep up with the amount orders coming in. Orders have dropped so much after the credit crisis that company has been forced to lay off 1000 workers. These types of stories are being heard all over the United States. It seems that the financial crisis one way or the other has affected almost everyone.

Tim Geithner’s plan will hopefully increase consumer credit liquidity. Our economy does not function without credit. The mortgage crisis has instilled fear into institutional investors such as pension funds, hedge funds, etc. Investors have been burned by mortgage backed securities and are reluctant to invest in other types securitized financial instruments. Therefore, the credit crisis has significantly impacted almost every sector of the economy. The lack of credit has spurred a massive downturn is sales for the automotive and retail industries. Consumers now have limited access to credit and therefore can not afford to spend money as they once did.

I think that this plan could possibly work. If the Fed is able to unlock consumer credit and increase spending then jobs will start to come back. Consumer asset-backed securities will become attractive to again for investors once jobs are being created again and people are able to pay their debt once again. The bottom line is that the housing crisis has caused investors not too trust the American consumer. Eventually, investors will find confidence in the American people, credit will flow, and our country will prosper once again.

Escapre Card by Discover

Discover has recently launched a new credit card called the Escape by DiscoverEscape by Discover
You can also redeem your points for gifts should you not want to use your points for travel. Discover allows you to buy gift cards from over 90 of its established rewards partners. These partners include but are not limited to companies such as Borders Books, Amazon.com, AMC Theaters, Brooks Brothers, L.L. Bean, Eddie Bauer, Outback Steakhouse, Red Lobster and scores of other major retailers and popular restaurant chains. You can also use your miles to pay towards your monthly statement. The exchange rate is figured at $25 for every 5000 miles. I would definitely use the reward miles for restaurants or travel. You can figure that for every mile you earn one half of one cent or .005 would go towards your balance.

You can also use transfer your balance from another credit card and pay 0% interest for up to 1 year. 0% interest also applies to purchases 6 months. This is a great way to make large purchases such as televisions, jewelry or to pay for an emergency car repair. Instead of paying regular interest rates you wont have to pay anything. A $600 brand new television could be easily paid off at $100 per month for 6 months.

The only real drawback to the Escape by Discover
It is good to see credit card issuers coming out with new products. Our economy is in shambles and any new available credit source is welcomed. The 25,000 sign up bonus points and the excellent rewards program make this card very tempting. All in all, the this new offer by Discover is an excellent credit card offer that I would definitely recommend to anyone

Has anyone heard of The Lending Cluband what is peer to peer lending? I had not heard too much about them before, but apparently, The Lending Club is starting to make a name for it self. Peer to peer lending is not a complex new banking term either. This type of lending is as old as the banking system itself. One friend lending another friend money.

This site aims at bringing together both borrowers and lenders under the same site. People join The Lending Clubeither with the intentions of borrowing money or making money. The Lending Club lets anyone invest money on individual loans and receive a better than average return. The Lending Club
will only qualify borrowers with better than average credit. The typical borrower is someone who is looking to refinance a credit card or make a small business loan. They offer fixed interest rates and loans for up to 3 years only. Borrowers are thoroughly screened prior to receiving any loan requests. The average loan size, according to Lending Club is around $5000. The minimum loan amount is $1000 and the maximum amount that you can borrow is $25,000. The Lending Club is supposedly known for its tough standards and turning away less than good borrowers.

I just signed up and I am going to check it out. It took me several tries to get through their encrypted verification code. It is a lot like social websites in that you have to fill out a profile. It’s also free to join. I have set myself up to become an investor, but they are telling me that my state of Texas does not qualify yet. They allow you to fund your account through pay-pal, credit/debit cards or directly to your bank account. Anyway, they claim to return an average of 9% over an 18-month investment. You can pick and choose who you want to loan to as well. Go to the invest section and browse through all the available notes that they have. You can decide whom you want to lend to. There are people wanting to borrow for their businesses, weddings, pay off credit cards, real estate, etc. Each loan is categorized according to credit worthiness. The better the borrowers credit the less return on your investment. Lesser creditworthy individuals will pay a higher interest return. A typical loan of $15,000 is funded by a multitude of lenders. The profile I looked at was asking for money to pay off high interest credit cards. They have been funded by 58 lenders and are just lacking about $4000 to complete their loan. All this has taken place in 3 days.

The Lending Club
takes care of collecting all the payments from each borrower and is in charge of paying back the lenders. The user interface is much like My Space or Facebook. It allows you to search for borrowers according to their credit ratings, debt to income ratio or even the number of delinquencies they have had. They also give you daily statistics like how many loans have been made that day and for how much. The Lending Club also shows you on its interface the borrowers credit score, employer, gross income, debt to income ratio, how many open credit accounts they have and even what city and state the borrower lives in.

I am definitely going to give investing in The Lending Club a try. It sounds look fun to play banker for a day (or a few minutes). The Lending club allows anyone who wants to make a little but of money an opportunity to do so. It does not even take that much money to start. I think I am going to start off with something small like a $100 or so. I would not recommend anyone to put all his or her money in one place either. However, if you have some money to play with, why not try with $10,000 or so. In a year you could a earn a pretty decent return on $10,000.

TrustedID Identity Theft Protection

Identity theft is on the rise as the economy continues to get worse. Some people are becoming very desperate and looking for new ways to make money; be it good or bad. In recent news, it was discovered that a New-Jersey-based credit card processor found a security breach in their system that leaked data regarding credit card transactions. Essentially, hackers, more than likely from overseas broke into their computer system and stole a large amount of information regarding credit card transactions. Fortunately, there ways that we can protect ourselves from identity theft. There are companies that specialize in identity theft protection. TrustedID is a reputable service that offers consumers protection from identity thieves. CNBC’s financial guru Suze Orman also recommends TrustedID.

TrustedID basically works by putting a fraud alert on your credit file. This fraud alert requires that lenders contact you to verify that it is actually you who are applying for new credit. Identity thieves will use fake credentials to pass as you when they go fill out a credit application. Someone can be using your personal information to apply for credit and make purchases without your prior knowledge. TrustedID fraud alert feature will notify you automatically, should someone try to use your credit information.

TrustedID also offers additional features that many people will find very useful. Are you tired of receiving unsolicited credit offers in the mail? Choose the “CreditLock” freeze option place a security freeze of your credit. It will cost you an additional $10 per credit bureau to freeze your accounts. There is an additional $10 charge to unlock your files as well. will manage these features for you. A freeze on your account will prevent anyone from making unwanted inquiries into your credit.

TrustedID also offers different monitoring services as well. They offer credit card monitoring in case your account number has been stolen and is being sold on the black market. Essentially, what they is scan black market areas on the internet where stolen credit cards are bought and sold. They will do the same thing with your social security number and bank account numbers. It is like having a 24-hour private detective. In addition, also offers 24/7 live customer support in case of any questions or concerns that you may have.

TrustedID also offers $1,000,000 worth of identity theft insurance in case your identity is stolen under their protection. They will reimburse your legal fees as well as other expenses you might incur including lost wages for up to $1,000,000. In addition, will also notify your creditors and the FTC that your identity has been compromised.

TrustedID will also store important information for you such as credit card numbers, insurance policy information, etc. This is a very handy feature should you ever loose your wallet and need to access to important information.

TrustedIDwill also offer protection for your computer. Purchase any package and you will also get free anti-spyware software that will run on up to 3 computers. This will keep your computer safe from hackers trying to steal your passwords and account numbers from your computer.

offers both an individual and family plan. The individual plan offers coverage for individuals. The family plan will offer coverage for both adults and children living under the same roof.

Monthly Payment Plans
 30 day FREE Trial
 Family plan is $19.99 per month
 Individual plan is $10 per month

Purchase a full year and save money.
 Individual plan is $84.15 per year. Save $35.85 by purchasing a full year.
 Family cost is $189.99 per year. Save $49.89 by purchasing a full year.

TrustedIDwill offer you peace of mind during these turbulent times. They offer $1,000,000 worth of identity theft protection for a few dollars each month. Everyone will benefit from identity theft protection whether you sign up as a family or as an individual. Sign up now and protect yourself from unscrupulous identity thieves.

Housing Crisis Causes Credit Card Delinquency

As unemployment continues to hit record levels and home prices fall, more and more consumers are falling behind on their credit card payments. Credit cards debt is usually the last debt to get paid when people are in a financial crisis. People who are suffering from unemployment are forced to prioritize bills. The first bills to get paid are always the mortgage, the electricity bill, food and car payments. Unfortunately credit cards are always the last to get paid in bad times.

Credit card payments sixty days behind have risen to 3.75% in December of 2008. The last record set for customers that are 60 days delinquent was in 1998 when 60 delinquencies were at 3.73%. We have already surpassed this. Credit card charge offs have risen even higher to 7.5%. A charge off is when a bank or other creditor determines that a delinquent account is no longer collectable. The creditor then reports this to the credit agencies and will reflect negatively. A recent study by Fitch Ratings estimates that credit card charge offs could possibly reach as high as 9% by the second half of this year.

This severity of this recession has made it very difficult for some people to pay their credit card debt. Falling home prices and dried up credit sources have made it in some cases almost impossible for people to obtain money. In the past people were able to access home equity lines of credit in order to pay off debt. However, falling home prices have affected many people’s ability to secure loans. Some families are even upside down in their homes. That means that they owe more than the home is currently worth. The United States has never seen an economic downturn in which home prices have fallen as they have since The Great Depression.

The effect of the housing bubble has created a tumultuous economic environment. For many years financing was available very easily and people bought homes like never before. New “creative financing” alternatives were available to consumers that made it possible for people to pay for a nicer home than they could really afford. Interest only and ARM mortgage loans were given out to almost everyone and anyone. The buying frenzy continued and more homes were built. As ARM mortgages re adjusted many people were forced to foreclose on their homes. This in turn has created a massive over supply of houses available on the market. It is a basic simple rule of supply and demand. There is more supply than demand in the housing market at this point in time. Therefore, housing prices have plummeted, financing sources have dried up and many people have been forced into hard times.

This economic tsunami created by the mortgage industry has affected the credit card industry tremendously. The bottom line is that in order for the economy to start to get out of this recession, home prices must be stabilized. The current over supply of houses on the market has caused home values to plunge. Once the over supply is out of the housing market than prices will start to stabilize. People will be able to once again access home equity loans to pay off credit card debt and begin spending again.


Save 10% and Protect Your Identity with TrustedID

President Oabama Puts Cap on Executive Pay

The days of big paydays and bonuses for Wall Street Executives may be over. President Barrack Obama is in the process of setting into motion new legislation that will cap executive salary at $500,000 for senior executives of companies how have accepted bailout money from the Federal Government. Any bank that accepts government funds will have to adhere to executive pay caps. It is about time that bailout money participants be held accountable for TARP (troubled asset relief program) funds that they have received. Banks like Merrill Lynch and Bank of America have continued to pay exorbitant salaries to its top executives. The Obama administration does allow banks that want to compensate their executives more than the $500,000 salary cap may do so by issuing company stock. The stock can then be sold once the bailed out firm re pays the government for any borrowed TARP money. This is very good way to motivate executives into shape. This way in order for senior executives to make money, the company stock must be healthy and the firm must be profitable. In order for executives to make the millions of dollars that they are used too, the bailed out firm’s stock must sky rocket. Americans are tired of watching bailout money being used for huge bonuses, parties and executive perks.

The government is not against wealth and the purchase of luxuries. They are against the irresponsibility that has plagued top management of some our publicly traded companies. "This is America. We don't disparage wealth. We don't begrudge anybody for achieving success," Obama said. "But what gets people upset — and rightfully so — are executives being rewarded for failure. Especially when those rewards are subsidized by U.S. taxpayers."

Sam Walton built a financial empire and made many people rich. He achieved this great wealth by cutting corners and being responsible with money. Executives who travel are required to stay at economic hotels. They usually sleep two people to a room as well. No one is allowed to stay at a 5 star hotel during a business trip even if the individual is willing to pay for it. Everyone is treated the same. Executives on Wall Street who did not found the firm that they are working for have become very spoiled. They expect high dollar salaries and bonuses because they have fancy Ivy League credentials and therefore are entitled to very high pay. Top executives should be rewarded based on the current performance of the company, and not on past achievements. Startup companies pay their top executives minimum salaries but give them stock options. Everyone works hard and when and if the company does well; rewards are reaped. Executives on Wall Street want money first and apparently must not care if the company does well or not. Ken Lewis, CEO of Bank of America, received a compensation package worth more than $20 million. He received an annual salary of $1.5 million plus more than $18 million in bonus money, stock and other benefits.

The salary restriction only applies to senior executives. It does not apply to salespeople who earn on a commission only basis. These people will be allowed to earn as much money as they can based on their commissions. The Obama administration needs to be careful with this policy. Bailout firms can very easily manipulate job titles. Wall Street is known for figuring loopholes and other means to avoid abiding by the new rules. I am glad that President Obama is finally imposing caps on executive compensation packages for banks and investment firms who have received bailout money. It is not right that the taxpayer pay for these individuals to purchase luxury cars and fancy Manhattan apartments. The American public should not be made responsible for the mistakes and excesses of Wall Street.


Save 10% and Protect Your Identity with TrustedID

What mistakes should you avoid when transferring your balance from one credit card to another?


We all enjoy the freedom our credit cards give us, but when the freedom comes with a high interest rate we need to look at our options. If paying off the whole balance isn’t something you can do at the moment, then you will want to look at transferring your balance to a credit card that offers 0% interest on transferred balances. Sounds like a great idea, you have a high interest rate with a high balance, and you receive a card offering 0% interest rate on transferred balances, what could go wrong?

There are a few mistakes that you could make when transferring your balances. So doing your homework is very important. Now that almost every credit card company has a website, you can investigate most of the details of the card’s transferring policy. Look in the fine print for the following items:

• Avoid balance transfer fees. These fees can be identified as a percent of your transferred balance or a specific dollar amount. Fees are generally limited to $50-75.00; while that doesn’t sound like much, you were transferring your balance to avoid interest and fees.
• What is the expiration date for the 0% interest? Six to 12 months is generally the length for 0% balance transfers. Track the balance transfer duration on your own as the duration typically begins the moment the balance shows up, not the billing cycle. If you lost track or never tracked it to begin with, call the company and find out the date that the balance will begin to accrue interest charges.
• Watch carefully that you do not make a cash advance instead of balance transfers. Often times you will receive checks from the card company to use for cash advances or paying other bills with a check when the card can’t be used. These are not balance transfers and will be charged interest. Only using the card for 0% balance transfers will result in no interest charges.
• Always make a payment. If you miss a payment, you will begin accruing other charges; late fees and over the limit fees are two fo the most common, if not making a payment and the late fees bring the balance over the limit.
• The 0% interest does not extend to purchases on that card. Make certain you know the interest rate on balances other than transferred balances. Often times the 0% interest is made up on purchases on the card. Money has to be made for the company somehow.
• Payment is applied to the lower interest first on the balance. If you have made a purchase or cash advance on this card in addition to the balance transfer; your payment will pay off the balance transfer portion first. This enables the company to make money on the portion of the balance that charges interest.

Have a plan on how you will be paying the transferred balance before it begins to be charged interest. Put extra money in your savings account to earn interest while you make interest free payments on the transferred balance. You will be making money instead of spending extra money on this transferred balance. Make certain you pay the remaining balance off before the last billing cycle of 0% interest. You do not want to be charged interest because you missed the cut off by one or two days. Ensure you have plenty of time.

Cards that offer 0% interest on balance transfers can be a great way to save money or ease you through a lean cash period if you are informed and savvy. Do your research, track your time carefully and plan the balance pay off correctly and you will come out financially ahead.

Bank Lending Down; Bank Executive Compensation High

Banks continue to hoard money despite receiving billions of dollars in Federal aid. According to recent survey by the Federal Reserve, banks continue to tighten up their lending practices. 60% of the banks that responded to the survey admitted that they have increased lending requirements. The lending cutbacks have affected a wide array of products. Car loans, credit cards and home mortgages have been severely affected by the current credit crisis. The purpose of the taxpayer-funded bailout was supposed to force banks to start lending more money. Unfortunately, this money has not made it to the consumer. Banks continue to cut back on consumer loans, however, they continue to spend lavishly on executive compensation, parties, planes, bonuses and other unnecessary expenditures.

In recent news, Citigroup was about to take possession of a brand new Dassault Falcon business jet worth about $45 billion. Citigroup had apparently ordered the plane about 2 years ago prior to the credit crisis according to the company. The company than decided, after the credit crisis, to sell their two existing older planes and replace it with this new one. Unfortunately for Citigroup and fortunately for taxpayers, the Obama administration said no way to the new plane. The audacity of Wall Street bankers never seems to amaze those of us from Main Street. Citigroup had no business even purchasing the plane two years ago. Foreclosure rates have been on the rise since 2006. How can a bank justify such a purchase when economic indicators are starting to show the economy going south?

Everyone knows the story about the famous CEO from Merrill Lynch, Mr. John Thain. Here is another example of a great financial innovator. The company is going broke, yet he continues to spend lavishly to decorate his office and receive large bonuses. The only financial innovating this guy is doing is for his own pocket book. Merrill Lynch was about to go the way of Lehman Brothers and Bear Stearns. How could Thain not have known that Merrill Lynch was going broke when he took over as CEO, replacing Richard Parsons? These guys do not care if the company they are working for is going to be around or not. They only care about their personal compensation packages and perks that go along with the job.

Bank of America has been recently criticized for spending large amounts of money advertising during the super bowl. Every year during the super bowl, companies spend millions of dollars on advertising. One second of airtime during the super bowl is said to go for something like $100,000. This year Bank of America decided to spend some of our taxpayer dollars beefing up their advertising.

How can Citigroup consider the purchase of brand new private luxury jet after reducing millions of dollars in consumer credit limits? This does not make much sense to me. What type of message is Wall Street sending Main Street? These types of poor management decisions continue to reduce investor confidence. The message that those who are in charge of Wall Street are sending Main Street is that Wall Street executives are basically greedy and incompetent. If taxpayers are going to be lending banks money, then these banks receiving bailout funds must use that money for lending purposes only. The taxpayer should not be lending money to banks that are going to foolishly spend that money. Bank of America does not need to be spending $100,000 a second on super bowl commercial airtime. They have gotten plenty of exposure with everything happening to the banking industry. Perhaps, they would receive free good publicity if they were to start using taxpayer funds properly by lending money to the consumers and businesses that need it the most.