Most consumers are aware of the current problems that some financial institutions are experiencing. This has caused some concern for large investors, those with CD investments over the maximum amount that is covered by the Federal Deposit Insurance Corporation. Currently, the maximum allowed is $100,000 per account.The simple answer to this problem is to spread your certificate of deposit money into various accounts at various institutions with...more
By now most American consumers have heard about the sub-prime mortgage crisis. It would be difficult not to have heard about it. What many consumers have not heard much about is the increasing belief that even homeowners with prime mortgages may be facing some issues in the near future.Of particular importance is the threat of lower home values, even for those with the best of credit and the best of mortgage loans. It is no secret that as homes...more
Did you know that today more individuals are turning toward personal bankruptcy as a way of solving their financial hardships? It is true.During the period from 1998 through 2000 there was a decrease in the filings for bankruptcies but that is not how it is now. New estimates say this year nearly 1 in 70 people will file for some sort of bankruptcy protection. Depending on how the sub-prime mortgage fiasco goes that number may go higher.One of the major reasons people seek protection from the courts is the unrelenting pressure that some bill collectors place on people who are delinquent on their payments. Others may find that bankruptcy is the only way they get their debts discharged with any sense of organization or with any hope of ever getting back to some sense of a normal life.For those who absolutely need it, bankruptcy can be the best answer, but there are drawbacks to filing for it. These drawbacks can be severe for most people.New laws have been passed that make it much harder to find relief from the courts. The simple truth is that many big financial institutions have been spending millions of dollars on Political Action Committee (PACs) to push tougher laws through...more
Do you know what to do if your credit cards or ATM cards are stolen? You might be surprised at how many people do not.All consumers should know that the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures if your cards are lost or stolen.In general, here is what you should do:You should report the loss or...more
Just like a regular savings account, a money market account is a type of savings account that is offered by banks and credit unions. The main difference is that money market accounts will usually pay higher interest, have higher minimum balance requirements, and often they only allow three to six withdrawals from the account per month. With most...more
Many consumers have found that putting money into CD's (certificate of deposit) accounts is a good way to earn additional interest over regular savings accounts. Just like the regular savings account that most of us are familiar with, money that you put into a CD will earn interest, and usually it will earn more interest than a simple savings account.One major difference between a regular savings account and a CD is that the money that you put into a CD has to remain in the bank or credit union for a specified amount of time in order to earn the full amount of interest. You can take the money out of a CD but you will have to pay a penalty.The basic rule of thumb for CD's is to not use money that you believe you will need to use before the maturity date. In other words, you should only buy into a CD if you can afford to leave the money alone for the amount of time required.All certificates of deposit will have a maturity date. This is the date when you can withdraw the money without having to pay a penalty. The length of time for CD's varies, so make sure you understand what you are buying. In the event you should need to cash out the CD before it matures, most banks will charge an...more
Most consumers have heard of Chapter 7 bankruptcy but there is another type known as Chapter 13. This article details some of the differences between the two and how they may affect someone who has to file.There are many differences between Chapter 7...more
Most consumers realize that there is a relationship between their debt and their credit reports. The truth is there are several relationships between a consumer's debt and his or her credit reports and ultimately the credit score that is calculated...more
Credit card debt reduction services are becoming more popular as more people find themselves in financial trouble. Consumers who believe that credit card debt reduction services may be an option for them should first do some homework. Two things are...more
Most people are familiar with the word bankruptcy, but many do not know much about Chapter 7 bankruptcy. This article deals with some of the more common issues associated with this particular form of bankruptcy.First of all, Chapter 7 is the most...more
Debt repair companies can do wonders for some consumers but as with all things associated with money, consumers should be careful before signing up.Consumers should begin by understanding that there are differences between credit counselors and...more
There has been a lot of talk in the news lately about sub-prime mortgages and how they are affecting the housing market as well as some of the other economic sectors. Many consumers may be wondering just what are sub-prime mortgages. It is a fair...more