Smart Borrower Blog

Archive for the ‘Credit Card Debt’ Category

Obama Unveils Plans for More Lending Regulation

In order to make sure all financial industries are behaving well, President Obama announced plans today for a new regulatory commission – the Consumer Financial Protection Agency or CFPA. This body would be in charge of overseeing the practices of mortgage lenders, credit card companies, and insurance and investment banking corporations. Here’s why Obama thinks this is a good idea:  "This agency will have the power to set standards so that companies compete by offering innovative products that consumers actually want — and actually understand. Consumers will be provided information that is simple, transparent, and accurate. You'll be able to... more »

Banks Take Credit Card Law Frustrations Out on Checking Accounts

Did lawmakers really think that banks would take this new credit card law lying down? As banks got slapped with tighter restrictions on how they can handle credit card billing and rate adjustments, the banks are trying to recoup some of those reduced profits by gouging their checking account holders. The costs always get passed back down to the consumers when big corporations are taxed or restricted; they never just eat the loss in profits – they try to make it up elsewhere. They work for their share holders, not their clients, apparently. Here's what's going down according to USA... more »

Credit Card Bill Punishes Responsible Borrowers

Once again financially responsible Americans are being forced to take one for the team. The U.S. Senate voted 90-5 Tuesday in favor of a law that would put tighter restrictions on credit card companies, in an effort to keep unsuspecting borrowers from being duped into higher fees and rates. If the bill becomes law (and it is expected to easily pass the Senate and win President Obama’s signature)   it will effectively punish those who understand how credit cards work and who use them wisely. Among other things, here’s what the bill calls for: Borrowers under the age of 21... more »

Senate Strikes Down Credit Card Rate Cap

A proposal by Vermont independent Bernard Sanders to put a cap on credit card interest rates at 15% went down hard to a bi-partisan coalition.   The proposal got only 33 votes while 60 senators voted against. Major credit card reform is still in the works and some who voted against the proposal said they were against the cap because they thought it would doom the bill as a whole. According to Sanders, a third of Americans pay interest rates over 20% and some as high as 40%. ... more »

Suze Orman Vs. Liz Pulliam Weston - Who’s Right?

You have to love Suze Orman.   For some unknown reason, this former waitress has become the financial Messiah for a lot of people.   Her current book “Suze Orman’s 2009 Action Plan,” has one million copies in print, and has allegedly been downloaded 2.2 million times from her website.   These figures are impressive, but I have to ask myself just exactly what her credentials are. It’s pretty obvious that Suze has a taste for the good life.   We’re talking about a woman that spends half a million a year chartering private jets, and did some commercial work... more »

How to Clean up Your Credit Report

If you’re not regularly monitoring your credit report to ensure the information is accurate and up-to-date, you are dropping the ball, and you may be paying more for loans and lines of credit then you need to. First thing you want to do is go to Annual Credit Report   and get a free copy of your credit report.   You can do this for free once per year.   They won’t tell you your credit score, but it will tell you what is on your credit report.   If you don’t mind paying, you can get your credit score,... more »

Consider Consolidating Your Credit Card Debt

It has been said that consolidating your credit card debt is one of the smartest decisions you may make.   Credit card consolidation is a perfect choice for people looking to have better credit.   It is fairly common these days, and gives you the opportunity to combine debt and make a single payment instead of half a dozen. Ideally, the best reasons for consolidating debt are to get a better interest rate.   Any time you are able to consolidate debt and save yourself money, it is a step in the right direction. Financial advisers today have changed the... more »

Will Credit Card Legislation Really Make People Start Saving More?

Today the House has pushed forward legislation to credit a consumers’ credit card bill of rights, so to speak. The bill is apparently a response to cries from consumer advocacy groups about "unfair" practices by credit card companies. Some of the requirements of the proposed law seem helpful, but some of them seem like ridiculously over-legislating and interfering with the private sector. Here’s what sounds reasonable: The bill would require credit card companies to give their customers 45 days notice before increasing interest rates or changing other contract terms. It also calls for an end to "double cycle" billing, which... more »