Complex Financing

The Colorado DOI has a website for their Department of Regulatory Agencies and on this site is a section dedicated to offering tips to consumers. The most recent tip segment is about keeping debt levels down and paying off holiday spending. What a great time of year to offer this type of advice as many consumers have spent more than they can afford.
Some of the highlights to the segment include paying off the highest interest rate credit card first to minimize the amount of finance charges you pay. They recommend cutting up all cards you do not regularly use and make it a priority to pay new balances in full each month. They suggest contacting creditors to negotiate lower interest rates which can often prove very worth while and will save you hundreds in interest fees if they agree. If possible, move balances from higher interest rate cards to lower interest rates cards and take advantage of low promotional rates when available.
The most important advice, which is also the most challenging for the average American, is to live within your means. Read more…

Who says you can’t get free money? Check out these limited-time offers from these banks to pad your savings with cash.

(Disclaimer: Read all fine print on any offer before you sign up to make sure you qualify for the cash incentive. Also, make sure you will use the account or card appropriately or else the bonus you receive may be negated by additional banking fees or charges. Aside from that serious note, here are free money opportunities that won’t be around long!)

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  If you are a current Bank of America customer, you can receive $35 in your personal or small business checking account for setting up online bill pay. Make three online bill payments within 30 days to get $35 OR 2 online bill payments within 30 days to get $25, and Bank of America will deposit the cash in your account. It’s that simple.

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As a nation we’ve become addicted to convenience, and few things are more convenient than credit cards these days.  For purchases below $50, you don’t even have to bother with signing a receipt much of the time.  You just swipe and go.  But as the old saying goes, you can’t get something for nothing.

The True Cost Of Credit

Until recently, the cost of convenience had been cleverly hidden by the credit card companies.  People wrote price increases off as inflation, and much of it was.  But just how much of it was due to more and more of the economy’s transactions being funneled through the credit card system?

Someone recently pointed me to one of my new favorite websites, TrueCostOfCredit.com.  You can put in the first 6 digits of your credit card number, which contains information on who issued the card (see this Wikipedia article), and it will give you information on just how much of each transaction your credit card issuer and clearinghouse (i.e. MasterCard, V

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To understand the concept of free debt financing we will create a scenario of a typical stable homeowner who living comfortable on their existing income. You are husband with a five to six figure salary, capable of buying your wife whatever she needs, sound mortgage payments, two cars in the parking lot and kids in good schools. Suddenly your wife decides she wants to redo the kitchen. Of course with a $10,000 credit limit you will go to your closest DIY store, you choose a kitchen designer store that offers you a six month interest free package on a $20,000 kitchen set. Six months later, you miss one payment on your credit card and you are hit with a 13% interest rate on your credit card and a 19% on the kitchen set. You are now left with a dilemma of how you got into this position.

Free Debt Consolidation

Suddenly, the free debt has dried up and you are now scrambling to get out of the unfamiliar position of being in debt.

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Most people would agree that there’s a great deal of wisdom in having an emergency fund. Having a little more than you need tucked away in a bank account can help you to avoid overdraft fees, avoid having to obtain costly payday loans, and take care of minor unforeseen expenses as they arise. While it’s not realistic for most people to establish a buffer overnight, there are definitely some ways to slowly but surely build a small emergency fund for yourself.

Save Your Tax Refund: Most people who don’t have anything set aside in savings are probably in a position where they receive a tax refund every year. That time of year is fast approaching and over the next couple of months, you may receive a check in the form of a tax refund. The t

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