Consumers are reducing their credit card debt and developing better financial habits.

For the 5th month in a row, American consumers cut down on the amount of debt that they owe. Considering that unemployment is high, home values are low and the stock market is still a question mark, it isn’t too surprising to learn that consumers have decided to save more, pay down their debt and spend less.
Consumer debt in the United States is at approximately $2.5 trillion, which represents a drop of more than $10 billion. This statistic was released by the Federal Reserve on Friday and are the numbers for June.
While trimming $10 billion off of $2.5 trillion isn’t …read more

Right now, there is a lot of interest in reducing consumer debt. Many people, looking at the recession and looking at their credit card (and other) debt, are concerned about the future. So they are turning to others for help. However, warns MarketWatch, it is important to be wary of these offers from possible scammers:
They hook hard-pressed consumers who have mountains of credit-card debt with media pitches about how they can negotiate deals with creditors for pennies on the dollar. They win folks’ confidence by telling them how the card companies will be happy to take whatever they can get …read more

What is consumer debt?

We’re all in debt – consumers, corporations, and countries alike. In this funny video, Tim Clue’s talking about consumer debt, but it makes you wonder if this isn’t exactly how the Big Money Boys were approaching things as well. So when the Visa bill and the collectors get you down, fire this up for a few laughs.
Image Credit: orphanjones, Flickr
Video Credit: Tim Clue, YouTube

One of the best things you can do for yourself is to get out of debt. But, since it’s financial literacy month, I think it’s also worth understanding how debt works. That’s why I found The Complete Idiot’s Guide to Getting Out of Debt so helpful.
Written by Ken Clark, a Certified Financial Planner, Getting Out of Debt offers real world information and help with debt. Using easy-to-understand, real world language — and drawing on personal experiences with debt — Clark takes the reader on an informative journey through the world of debt. The book tackles such concepts as where debt …read more

I saw a clip of Senator Claire McCaskill (D-MO) that was quite interesting. There were two points I particularly enjoyed: 1. There were idiots working on Wall Street and 2. CEOs shouldn’t make more than the President of the United States. Both points are debatable.

The President of the United States earns a salary of $400,000. Sen. McCaskill argued that CEOs should make no more than that, at least until their companies are no longer receiving taxpayer aid.
The compensation of Wall Street CEOs is attracting more attention by the day. According to CNBC, the Obama administration has tabled the announcement of a bad bank plan in order …read more

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Union workers are entering their fourth day of peacefully occupying a closed factory in Illinois after their employer ceased operations on three days’ notice.  The shut down came after Republic Windows & Doors lost the line of credit from its primary lender, Bank of America.
The Associated Press reported that employees of Republic Windows & Doors were given notice on Tuesday that the factory would close on Friday even though the law requires 60 days before such action can be taken. 
Company officials say the factory was forced to close because Bank of America canceled …read more

Big credit card issuers including Chase, Bank of America, Discover and Citibank banded together with consumer groups pleading for mercy from the Treasury Department. 
The regulators have spoken and like the cashier at a Palm Beach Publix when Ann Coulter attempted a credit card purchase back in February, the answer is…DENIED! 
About two weeks ago, a request was submitted to the Treasury Department by the Financial Services Roundtable (representative of the banks, etc.) and the Consumer Federation of America.  Last night, news broke that the request was rejected.
According to AP reports, the proposal allowed credit card companies to forgive of up to 40 percent of debt per person.  Each credit card holder could delay …read more

Citigroup has created the Citi Homeowner Assistance program to help mortgage holders avoid foreclosure.
Citi is not the first and will not be the last bank to announce homeowner relief efforts.  Bank of America and JP Morgan Chase have already taken recent measures to spare homeowners from foreclosures.  Fannie Mae and Freddie Mac will release details of their homeowner relief programs this afternoon.
According to MarketWatch, Citi has trained counselors who will initiate contact with homeowners particularly in areas where prices are falling and unemployment is high.  Over the next six months these counselors will attempt to make contact with 500,000 borrowers via mail, email, phone, social networks…this type …read more