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Letters: Solving problems with the plastic
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Credit cards -- they can make you feel like the world's your oyster. But all that sliding and swiping can lead to a lot of trouble. Liz Weston, our credit card expert came into the studios to counsel a few of our listeners about their credit card pains. One listener, who's fed up with the shoddy customer service of her card, wants to know what the consequences are for closing a card. We also talk to a nurse who makes $60,000 a year, but is trying to confront $30,000 of debt. She's just on the brink of getting into deep, deep trouble, but Liz assures her that she can overcome her debt.
Take a listen above to hear Liz's advice.
Being your own boss can be exhilarating and scary at the same time. You have no one to blame when things go wrong and only yourself to thank when things go right. Your business can be small and home-based, providing supplemental income, or it can generate enough income to support your family. Once you've decided on the type of business and your products, it's time to get going on how to start your own business. Thanks.
Regards,
http://mckpr.com/blog/trade-tips-start-your-morning-off-right
It is a fast paced, long hours job, but rewarding. It can be stressful, however it is a good field to go into regardless of the economy. Pros are good money, interesting job, good working conditions and in most cases good bonus/rewards. Cons: Can be high stress and long hours. You will need to study and research the industry if you are really serious. You will also probably have to settle for a job in Investment Banking that might not be what you want right away, but you can work your way up. Thanks.
Regards,
http://www.interstatecapital.com/freight-factoring
Charity credit cards are gaining widespread popularity in recent years, because people are enamored with the thought of supporting their preferred charities at obviously no additional cost to themselves. When you opt for one of these cards, a one-time small donation is made by the card issuer to the charity associated with the card, and subsequently a small percentage of your expenses on the card is donated by the card issuer instead of the cardholder.
Cards available today cover big range of charitable organizations, both local and national and at times, even international. So you can be sure there will be at least one charity supporting your favorite cause. Thanks.
Regards,
One of the most important things about a business plan is that it tells a story. One of the biggest mistakes people make is that they overemphasize the financial projections and margins, graphs and charts. Those are necessary but not sufficient. If you miss the opportunity to tell your story and convey your passion for your business, you’ve blown it. Thanks a lot.
http://www.legacylendinggroup.com/services/utah-home-purchase/
Lots of people today misuse credit cards. They use their cards every time there's a lack of cash, some even have cash but think then it's better to pay with card - why should I spend money, if I have a card? The idea of taking something now and paying pack later has became extremely popular. When you use your card you do not feel that you are spending money - but when it comes time to pay off it's often a problem, because you should take out money from your wallet and pay back. It's not worth to put all the expenses on plastic and forget about cash, card using should be limited if you take care of your financial wellbeing.
https://paydayloansat.com/
I forgot to comment sooner, but I was also stunned at the bankruptcy advice. That may have been good advice before the new bankruptcy laws took effect, depending on individual circumstances. My friend is a consultant and she hasn't been able to get many jobs since she declared bankruptcy. Her work suddenly dried up and she assumes this is because of pre-employment credit checks. Do you think an employer has to tell you the real reason they aren't hiring you?
The caller was employed but in this economy she could easily lose her job, and find it impossible to find another one because of the bankruptcy filing.
I have a daughter with similar tendencies as Katie. While my daughter's debt is only 15,000 and AFAIK she has no credit card debt(Though she did in the past) I think the problem is spending too much. If you can move in with others to cut down on rent and then just turn it into a game...how many days in a row can you go without spending a penny. buy the food cook at home. stay home and read or listen to NPR or watch TV no new clothes, no new toys etc etc etc. After a year you would be shocked at how much you save or paid debt off! I would not say this is a way to live for years though some people HAVE to!! People like my daughter who live paycheck to paycheck, it is unsustainable.
I have been a Marketplace listener for years and this is my first comment. I am absolutely aghast at your expert's "advice" that she consult a bankruptcy attorney. Bankruptcy? For $30,000 in debt on a $60,000 income sure to grow in the coming years, and 10 years as persona non grata from lenders? GIVE ME A BREAK. This is a completely manageable amount of debt, particularly with her income. Even if she were to declare BK, the student loan debt would not be dischargeable, so the net benefit would be <$30K.
Depending on whether or not this RN is a good credit risk, there are plenty of options.
1) She may qualify for low-interest balance transfers through various credit cards. No-fee 0% transfers are a thing of the past, but even with a 3% fee on a 0% 12-month balance transfer, she could cut her interest rate by a huge sum. Granted, it might be only $2000-3000 per transfer, but that is a HUGE cut in the interest rate.
2) She could also try some of the peer-to-peer lending services like Prosper or Lending Tree, where she could easily cut her rate in half, perhaps even more; and possibly finance away all of the high-interest debt she has.
3) Your expert didn't even mention setting a budget and sticking to it - cutting her expenses, living within her means. Cancel cable TV. Switch to prepaid cellular. Cook more meals at home. These are all key personal finance tricks that your show is all about, yet your expert's grand recommendation is credit counseling & BK.
4) Finally, grow her income. She's an RN - presumably she could pick up extra shifts, find a second job (not necessarily related to nursing), operate a side business, something to generate extra income to either throw at her highest-interest debts, or possibly allow her to maintain her lifestyle.
Your expert also gave poor advice to the lady seeking to change her credit card from a fee to no-fee. Most credit card issuers (and it is likely a large bank, since it is an airline CC) will easily convert accounts from one to another with no impact on the age of the account or credit limit. Moreover, she can call up to cancel and in all likelihood they will bend over backward to retain her, including possibly waiving the annual fee - because it is her primary card. It costs NOTHING for her to try. At the very least, she will be able to retain the credit limit without paying fees, thus keeping her credit score higher.
"Credit card expert," my foot. Bad performance, Marketplace Money, bad performance.
