Debt

Our 15 best tips for financial spring cleaning

Lita Epstein Apr 7th 2010 @ 4:00PM EST Filed Under: Debt, Saving Money, Investing, Credit Reports

We've all just lived through a year of rough financial times. Time for a financial spring cleaning. What better time to review the way you spend and save your money and find ways to improve your financial position for the coming year?

Here are 15 tips for getting started. First, let's look at things you can do to improve your debt situation or find additional cash, then we'll talk about ways to use that newfound cash:

Check your credit card interest rates. Even if you pay off your credit card bills each month, it's a good idea to check your rates just in case you hit a rough financial patch and have to put off paying your cards in full for a couple of months. Most credit card companies jacked up people's rates considerably in the last year, but they did lose a lot of customers. Some are trying to win back those with a good history paying bills on time, so you can find deals out there. Bankrate.com has an excellent search tool that lets you look for the best rates depending on your credit score, by card type and by issuer.

Set up autopay on your debts. If you're not already paying your debts automatically, set this up right away. Even one late payment can hit your credit hard, and you could see interest rates that you have to pay on your debt skyrocket. While the new credit card law does put more controls on credit card companies, they can raise your rates for at least six months when you pay late. Also, you can even earn points if you pay your bills on a credit card with reward points. If you can't use a credit card to pay your debts (I know some utilities won't allow it), then set up an autopay using online banking. Why waste money on stamps and envelopes paying bills? Think about how much you can save over the year in stamps alone. Plus you never have to worry about a late payment.

Continue reading Our 15 best tips for financial spring cleaning

Don't let creditors win a default judgment against you

Martha C. White Apr 6th 2010 @ 5:00PM EST Filed Under: Debt, Credit Cards

We've warned you about this before: If you rack up big credit card debts, it's perfectly legal for those credit card companies -- or the debt collection firms they sell the debts to after they've been written off -- to sue you to try and reclaim what you owe them. What happens then is unsettling: You can have your wages or even your bank account garnished (government benefits and accounts that contain only those funds are exempt).

And the number of Americans who've found creditors dipping into their paychecks is on the rise, according to this article from The New York Times. This makes it even harder for Americans who are already struggling to get or stay current on their bills to stay on track.

Continue reading Don't let creditors win a default judgment against you

Contest: Win $10,000 to pay off your credit cards

Geoff Williams Apr 5th 2010 @ 10:00AM EST Filed Under: Debt, Credit Cards

It's a gimmick to gain attention for their company, but if you're the one who wins, who cares? On Monday, April 5, InCharge Debt Solutions, a nonprofit credit counseling and debt solutions company, is launching a contest in honor of Financial Literacy Month to help one of the more impoverished of us: The winner will get up to $10,000 of their credit card debt paid off.

But this isn't a "Send us your email address, and you're entered" sort of contest. To enter, you've got to jump through a few hoops.

First, you have to complete a free, e-learning, personal finance literacy course called "Mind Your Finances." And this isn't some four-question survey.

"It can take over an hour," Jacquie Tremblay, InCharge's communications manager, told me. "But you can go on the Web site at different times and pick up where you left off. It tests what you know, how you plan your goals, and at the end, you receive a certificate of completion."

They're also asking all entrants to film a video -- no longer than two minutes and 30 seconds -- and discuss what they've learned from the course.

"I know that's going to be tricky for some people. You have to be a little technologically savvy," says Mark Hoewig, InCharge's content and creative manager. "But it's not like you need to have a video camera. You can do it on your cell phone."

The course must be completed and the video submitted no later than April 30, 2010. All the videos will then be reviewed and approved and put online, where the public will be able to watch all of them and choose the winner. The contest winner will be announced on May 31, 2010.

Continue reading Contest: Win $10,000 to pay off your credit cards

Car loans are easier to get -- but still stupid!

Zac Bissonnette Apr 1st 2010 @ 6:00PM EST Filed Under: Borrowing, Debt, Extracurriculars, Wealth

Easy car loans make it simple for consumers to but new cars like these

The Wall Street Journal is reporting (subscription required) that there is a thawing in the car loan market, which is making it easier for people to get car loans at lower rates than were available at the height of the credit crunch.

According to the Journal, "The recovery in the auto credit market is the result of various factors, analysts say. A program launched by the Federal Reserve to jump start demand for securities backed by car loans worked, and slowly allowed auto makers' finance companies to once again raise capital for new loans by selling off their old ones."

Continue reading Car loans are easier to get -- but still stupid!

Getting a 4-year degree in 3 years

Emily A. Leithauser Apr 1st 2010 @ 3:00PM EST Filed Under: Money College, Debt, Student Loans

This week, Money College presents two views of graduating college early by experts -- that is, students who took the three-year path through school. You can also read Money College blogger Sarah Dietze's companion piece about saving money by graduating early.

I've heard it time and time again: "College is the best time of your life. Why would you want to get out early?" Despite others' questioning my logic, graduating early has probably been one of the best decisions I've ever made.

Graduating early wasn't my original plan; I was just going to take it easy in college. Thanks to my Advanced Placement scores in biology, psychology, English literature and statistics, I was a sophomore by Christmas of my first year. Never pass up opportunities to take AP courses in high school. You'll either test out of a course or already be familiar with the material.

The financial incentive to graduate early was enough to convince me to put in the work and finish school before May, 2010. The average student at a public, four-year university pays about $7,000 per year for tuition before award packages. For those who choose private institutions, the yearly cost without any aid or scholarships averages $26,000. Add on room and board, and both college options have a hefty bill. I graduated just one semester early and saved myself approximately $10,000 in tuition. As a result, I am financially stable while searching for a career.

Continue reading Getting a 4-year degree in 3 years

Songs to get your finances on track

Gina Roberts-Grey Mar 31st 2010 @ 2:30PM EST Filed Under: Credit, Debt

Katy Perry just might be onto something. Not only does the pop starlet have a string of hits, but it seems she's figured out one of the keys to financial success: putting your money where your mouth is.

And Perry's not the only singer to croon about financial faux pas people make, money matters we could handle better or budget busters we could avoid.

Here, for your enjoyment, is WalletPop's "hit list" of download-worthy songs that are sure to teach you a thing or two about managing your money. And maybe even rev you up to start paying down your debt.

Continue reading Songs to get your finances on track

Unemployed and underwater borrowers to get more government help

Lita Epstein Mar 26th 2010 @ 1:30PM EST Filed Under: Debt, Home, Real Estate, Mortgages, Refinancing

If you're unemployed or your home is severely underwater, help is on the way. The Administration announced additional options for struggling homeowners to get help and explained the program during a press briefing Friday. You won't be able to call your lender right away, but you can call 1-888-995-HOPE (4673) for help with the Making Home Affordable Program and speak with a HUD-approved housing counselor for more information.

Underwater borrowers
Borrowers whose homes are underwater will be able to get help in two ways. If you're making on-time payments you may be eligible for a refinance with an FHA loan. If you're 60-days delinquent or more, you'll need to apply for help through the Home Affordable Modification Program (HAMP).

Continue reading Unemployed and underwater borrowers to get more government help

Chase only major mortgage servicer not offering principal reduction

Lita Epstein Mar 25th 2010 @ 6:00PM EST Filed Under: Debt, Real Estate, Mortgages

Chase is only mortgage servicer not to offer principal reduction

After Bank of America announced its new mortgage modification program that offered principal forgiveness for certain types of loans, I wondered if it was the only bank to do so. Of the four major loan servicers on the HAMP program -- Bank of America, JP Morgan Chase, Wells Fargo Bank and CitiMortgage -- Chase is the only one to tell me that it "doesn't offer principal forgiveness as part of a mortgage modification at this time, but continues to review all possibilities."

Chase is the second largest servicer based on the February 2010 report on the Home Affordable Modification Program (HAMP), Chase has completed the second highest number of modifications -- 171,317. Bank of America held the number one spot in February with 261,216 modification. Wells Fargo came in third with 139,065 modifications and CitiMortgage was last on the list, with 129,383 modifications. These modification numbers include both trial and permanent modifications. So far, only 168,708 modifications are active permanent modifications. All other servicers are well below 100,000 in loan modifications.

Continue reading Chase only major mortgage servicer not offering principal reduction

How Bank of America's principal reduction plan will work

Lita Epstein Mar 24th 2010 @ 4:00PM EST Filed Under: Banks, Borrowing, Debt, Mortgages

Bank of America forgives some underwater homeowners

If you have a loan directly from Bank of America or Countrywide and are 60 days or more late, you may qualify for its new "earned principal forgiveness." Also about 95% of the loans that Bank of America services for private investors in which the investor has delegated authority to the bank may qualify. The types of loans that may qualify include pay option ARMs, prime two-year hybrid mortgages and subprime loans initially offered by Countrywide. Fannie Mae and Freddie Mac loans will not be eligible.

But don't rush to make a call to Bank of America today. The new program won't be available until May and Bank of America will be doing the outreach to you if you qualify. Jack Schakett, a credit loss mitigation strategies executive for the bank, said in a press conference today there were 1.5 million borrowers 60 days or more behind on their loans, but not all these borrowers will qualify. Right now the bank estimates about 45,000 customers will ultimately qualify for this program and about $3 billion dollars of principal will be reduced, provided all the customers accept and complete the program.

"The centerpiece of these enhancements is a program of earned principal forgiveness that addresses severely underwater mortgages with some of the highest rates of delinquency - specifically subprime loans, Pay-Option ARMs and prime two-year hybrid ARMs that are 60 days or more delinquent with a principal balance of 120% or more," said Barbara Desoer, president of Bank of America Home Loans during a press conference today.

Continue reading How Bank of America's principal reduction plan will work

Skip nav