There are some silver linings with regard to the household wealth report from the Fed.

If the nation’s banks needed a stress test, maybe you should have one, too.
I have written several posts about the government’s stress test. The publicity may have morphed the test into something totally different from what was originally intended, but the idea of forecasting a bank’s ability to handle poor economic conditions is a good one.
Just like banks, we all have assets and liabilities, as well as income and expenses.
Some of those items are more susceptible to losses in times of a deteriorating economy. It never hurts to prepare for the worst, even if the worst case scenario never happens.
Here are …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

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

This the the first time in a long time that we have received a tax refund. Normally we owe. But this year we saw the benefit of mortgage interest in terms of reducing how much we need to pay. We’re going to use it to help pay for what we need to put in a sprinkler system and a lawn. We were going to use it for dental stuff, but the cash discount the dentist offers made things affordable without the tax refund.
All of this thought about our tax refund got me thinking: What would I do with the money …read more

You want to start a small business. Or your business needs cash to get through a slump.  How do  you get the money? If you thought, “credit cards,” you’re not alone.  The National Small Business Association says that small businesses use credit cards more than any other type of financing.
The Dangers of Credit Card Financing.  If you have really great credit, you can probably get a 0% credit card.  Then you can either (1) dump all your other business credit cards onto that one or (2) Use the zero interest one to buy stuff you need or (3) both.  But …read more

As the economy continues to sink deeper into recession, credit card delinquencies have reached a new record. This is the second month in a row that late payments on credit cards have reached a record. As consumers become increasingly concerned about their ability to meet obligations, it is no surprise that credit cards are falling in priority — usually behind such items as making the mortgage payment or buying groceries.

The effects, though, could be far reaching. Already, many credit card companies are restricting credit accounts. Available credit is being slashed, and the current delinquencies could mean an increase in the …read more

We’ve all heard the commercials on the radio or seen them on TV: Some company you’ve never heard of promises to help you pay off your credit card debt by tapping into the equity of your home. Often they start with a distressed consumer lying awake at night, fretting over mounds of unpaid bills.
 
And one thing these commercials almost always include: a reassurance or two that this credit card debt isn’t your fault.
 
I hate to say it, but that high credit card debt often is your fault. There are exceptions – job loss, serious illness – but much credit card …read more