Rein in Credit Card Debt

Posted by administrator | 21/01/12 | Tagged Credit Card Debt

Rein in Credit Card Debt
News from LoanSafe:

(Source: The Columbian, Vancouver, Wash.) – There’s nothing inherently wrong with debt. It’s what allows many people to buy homes, own automobiles and send their children to college. But debt is like dessert: If moderation is not exercised, all kinds of problems arise.

Washington’s state government has accumulated a per capita debt of about $ 2,626, which ranks seventh among states. That’s a cause for concern, and there’s no moderation seen in the fact that the state’s debt service payments increased 61 percent in one decade (1999-2009). That trend is even more troubling when compared to the 39 percent increase that same decade in spending for education, supposedly the state’s paramount duty.

Those numbers were reported in an op-ed written by state Rep. Judy Warnick, R-Moses Lake, and published in Saturday’s Yakima Herald-Republic. We agree with her recommendation that long-term solutions must be enacted by the Legislature to make the state’s debt capacity sustainable.

To their credit, legislators last year approved reducing the state’s working debt limit — gradually, through 2020 — from 8.75 percent to 7.5 percent of general state revenues. That’s a good tactic, but the overall strategy must include other steps. Warnick and others want to calculate state tax collections over a six-year period instead of the…………… continues on LoanSafe

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Mortgage professional uses refinance to help family pay down credit card debt
News from San Francisco Chronicle:

Mortgage broker Mary Anne S. Daly

Mortgage broker: Mary Anne S. Daly, senior mortgage adviser, Pacific Mortgage Consultants.

Property type: Single-family residence in Saratoga.

Appraised value: $ 1 million.

Borrowing amount: $ 775,000.

Loan: 30-year fixed jumbo.

Rate: 5.125 percent, zero points, cost of 0.4 percent.

Backstory: Because of a family emergency, Daly’s client, a couple with children, ran up credit card debt of more than $ 140,000, with payments totaling $ 3,400 per month. They had two mortgages with interest rates of 5.5 percent and 6.64 percent, no cash reserves and were in great need of payment relief.

To enable the family t…………… continues on San Francisco Chronicle

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The bitter sweet truth about credit card reward schemes

Posted by administrator | 21/01/12 | Tagged Credit Card

The bitter sweet truth about credit card reward schemes
News from

If you are the type of person who can pay off your credit card in full each month, exploit the advantages. If you are not, stay well away as nothing compares to the pain of unpaid debt

Perhaps the biggest allure of credit cards is the ability to spend without having to carry cash. But for some people, part of the appeal is the belief that frequent card use can bring a host of incredible rewards.

In rewards schemes, the cardholder earns a fraction of the amount spent in the form of cash, vouchers and gifts.

Free tickets to a dream destination, weekend stays at a luxury resort, dining and retail discounts are just a few of the freebies up for grabs.

Because the offers often look too tempting to resist, cardholders are increasingly pursuing air miles and points to supplement their expenses. Consequently, as consumers swipe more, spending and debt levels also rise.

A Federal Reserve Bank of Chicago paper published in December 2010 tackled the impact of credit card rewards on spending and debt in the United States.

Authors Sumit Agarwal, Sujit Chakr…………… continues on

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Who’s to blame for credit card debt?
News from Fox Business:

A judge said that all his experience, both as counsel and judge, had been spent sorting out the difficulties of people who, upon the recommendation of people they did not know, signed documents which they did not read, to buy goods they did not need, with money they had not got.

– Gilbert Harding

Wow. Can you think of a quote that better distills the zeitgeist of 21st-century America? Could it have been written at any other time about any other place?

Well, yes, actually. Gilbert Harding was a journalist who died in 1960, and the judge he was quoting was British. We may think of problem debt as a relatively recent social ill, but writers have been warning about its effects since Old Testament times, through Publilius Syrus in the first century BCE and Benjamin Franklin in the 18th century, to what feels like every politician today.

Credit card debt rising again

And, of course, we continue to ignore them all, just as humanity always has. On Jan. 9, the Federal Reserve published its consumer credit data for November 2011. That month, the total amount outstanding rose at an annualized rate of 9.9 percent, or more than $ 20 bil…………… continues on Fox Business

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