credit cards

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TweetWatch your credit cards closely - January 27, 2003
The mob has started a new profitable way to make money and one of the rings was recently busted. These people were paying cashiers at pharmacies and retail stores in the Northeast to swipe people’s credit cards through a device that captures the numbers. The cashiers would get $50 for every credit card they stole. And the mob would allegedly take the card number, press it on to a new blank card and sell it for $1,000 to criminals who ran them up. Clark wants you to know how easy it is to steal your credit card information in every day transactions. Your responsibility is to look over your statements with a fine toothcomb every time you get them. They may test the card on small purchases and then wait a month to see if they get away with it before pouncing and spending a fortune. The time to catch these people is when they do those small test charges and they show up on your statements. Credit cards may call you to verify a charge is yours if it doesn’t match your spending patterns. But they won’t always give you that courtesy. Visa has started an online anti-theft program called “Verify By Visa,” whereby you have to punch in another secret code before you use the card. This is a great way to further protect yourself, and thankfully Visa has shared its software with other companies. Clark would be more than happy to punch in a secret code online before a transaction is processed if it will prevent some crook from stealing his card number and racking up all kinds of charges.

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TweetCredit card companies and porn site charges - November 22, 2002
Credit cards are getting eaten up by all of the contested charges for calls to adult content sites. Some people are actually trying to visit the sites and trying to keep it from their spouse so they deny them and contest them. But many of these charges are phony. The credit card industry has even posted new strict standards that limit the ability for these phony outfits to get credit card clearance. Included in the changes are higher registration fees and ongoing renewal fees. Just remember that if you choose to visit these sites on your own, you face huge charges. And, if you don’t, check your statement each month because they may just show up anyway.

College students: more plastic, more debt - November 1, 2002
Clark saw an article in the Penn State University newspaper about college students and how many credit cards they carry. One in three students has four or more cards. What do they use them for? Mostly lifestyle purchases, like food, clothes, trips and beverages. And if they can't pay, their parents usually bail them out. Most students do NOT pay off the balance each month, unlike 40 percent of all card holders. But the debts can really mount up: 10 percent of college card holders owe $7,000 or more. Most of today's college students graduate with two kinds of debt, student loans and credit card balances. Student loans are investments in the future since a college degree means the holder will earn an average of $1 million more in a lifetime than a non-graduate. But credit card debt is just a weight: there is no return on an investment in "stuff."

More credit cards means trouble - October 17, 2002
Clark talked earlier in the day about how silly it is to carry tons of credit cards. Joni, one of our producers, used to carry 23 cards, if you can believe that. She has reduced that number to 10, which is progress for Joni. Many of the staff members carry half a dozen cards or more because they either offer points, cash or other rewards. But if you're putting a little here and a little there on each card, you're not accumulating enough to get good rewards. Also, there more opportunity for theft and for overuse the more cards you have. Credit card companies are so desperate to get you to use their cards that they are adding lights, sound and even one that fits on your key chain. That way, you see it first and are more willing to use it over the others. Remember that the fewer you have, the more of an advantage you have.

The pitfalls of credit card balances - September 27, 2002
Did you know that 40 percent of people are paying their credit card balances each month? The other 60 percent are split between paying a significant amount each and those who only pay the minimum payment. The latter group is obviously at the greatest risk. If you continue to only pay minimums, you will be in debt until about 2040 on average. In addition, the credit card company knows that you only pay the minimum, so they raise your interest rate to make more money off you. If you are a minimum-only payer, you are a sitting duck. What about those who pay their balance every month? Well, banks refer to you as “dead beats.” That’s right. Banks are so hostile toward deadbeats that they are coming up with underhanded ways to miss payments. First USA, the largest issuer of credit cards, has shorten the payment cycles of those who pay their bills in full. If you own a First USA card and you pay your bills in full, you have 20 days from the time the statement is processed to the time it’s back in their greedy little hands. Clark’s advice if you have this card – tear it up!

Savvy credit card uses charge ahead - September 24, 2002
The credit card market is a changing one and American Express is acknowledging this by ditching its famous Green Card. One of the earliest credit cards in existence, it was essentially a status symbol. Membership had its privileges and you paid for them with an annual fee – currently $55. But what are you paying for today? Absolutely nothing! Today’s consumer is smarter and the company knows this. We don’t want to pay for the privilege of having the card but rather expect an incentive for using it! Look at all the pre-approved cards offering us different deals to tempt us. Clark even has an American Express Cash Rebate card that sends him back one and a half percent of all the money he has charged over the course of a year. And he pays no annual fee, of course. You can’t beat that! This is just one of a whole range of cards available from American Express, just go to their website to see all they have to offer as they try to segment the market. Other credit card companies are doing the same thing. MBNA, a very successful issuer, is using every imaginable angle to tempt consumers, including offering cards with pictures of your old college campus on them where the college gets a small rebate when you charge for things. People go for this out of sentimentality but it’s not the smart move. Much better is to choose a card that offers you a reward or rebate. From frequent flyer miles to free gas, free hotel stays, free movies and Clark’s favorite – free cash! Don’t get stuck in a rut staying with the same company just because you’ve been with them for a long time. The savvy among us are getting great deals – go get ’em too!

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TweetThe average interest rate on credit cards right now is 17 percent. But the Wall Street Journal is reporting that one of the new gimmicks that companies are using to attract your business is the zero percent interest credit cards, especially when it comes to cash advances. Why? They hope that you will transfer all your balances over to them and after the zero percent period is over they can raise the interest rate to whatever they want and then get huge amounts of your money! However, if you can work the system by getting the zero percent advance and paying it off quickly with no entry or exit fees then the offer is a good one. But what concerns Clark is how many of us are that disciplined? USA Today says that in the average US household credit card balances stand at $9000. Only 40 percent of us pay off our bills in full each month, leaving 60 percent to carry debt. Think about it before you accept and remember that not everyone gets zero percent. Seventy percent of people getting it earn over $50,000 a year with only 30 percent earning less than that.


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There has also been an increase in the use of debit cards - or as Clark calls them fake Visa and Mastercards. Companies are happy to report that in the first half of this year more debit card transactions took place than credit card ones. Clark hates these cards because although they are convenient, if they are stolen the thief finds it just as convenient to instantly and easily raid your checking account. You also have no charge-back rights on purchases. As he feels he is losing the battle to stop people using them he warns that you must never ever use them for products and services you’ll get in the future. If you don’t get the goods the people you bought them from have got your money and little incentive to pay it back, especially if they are in financial trouble.
Taxpayers to pay for credit card changes - August 20, 2002
Clark talked recently about changes coming in the credit card industry that could effect you. Now more of the details are coming to light, and one caveat we didn’t know is that the costs of these changes will be passed on to you and me as taxpayers. A number of companies started what are called “monolines,” meaning they only lend people money and do nothing else. Capital One is one of the largest ones. These companies have bank charters, and when they get into trouble and can’t pay their bills, the taxpayers have to bail them out. The federal government has realized how great the risk is with these companies, so they’re requiring that more money be set aside to cover the costs. In the past few decades, we as taxpayers have paid $500 billion to help these companies pay off their debts. On an individual level, you will be under more scrutiny when applying for a new credit card under the new guidelines. If your credit score is below 700, it could be very difficult to get approved. In addition, your fees and interest rates may go up. If you’ve have credit problems in the past, these changes may encourage you to be more disciplined. And, if you’ve got balances, you will want to pay them off. So, basically, if you need to obtain some credit, do it now. If you have outstanding balances, pay them down now. At myfico.com, you can see what kind of interest rate you’ll get depending on your credit score. This is a time to reign in your spending.

Credit card solicitations getting tossed - August 16, 2002
Did you know that over the last year, credit card companies mailed out more than five billion solicitations for credit cards. Some houses get none; others may get several hundred. But the average is about 50 per year. People are trying to tell the banks to get lost. The response rate on the five billion solicitations is the lowest ever. So, people are obviously tearing them up and throwing them a way (a good idea to avoid identity theft). There is about $3 trillion worth of credit out there to give away and the banks are working overtime to get you to rack up some debt. If you have a balance on your credit card, you are loaning them money. Secondly, banks are on the verge of getting Congress to enact a new bankruptcy law. The new law will make it mandatory for people to pay back their debts, so the banks get paid. Most people are in favor of people paying off their debts. But the solicitations are out of control. Remember that you can stop about 90 percent of the solicitations that come to your home by calling the national OPT OUT number – 888-5-OPT-OUT. The number is legitimate and it’s okay to enter your information.

Golf club scam artists busted - August 16, 2002
Over the past few years, Clark has gotten many calls from listeners who’d been taken in a golf club testing scam. The listeners would pay a deposit to try out the clubs, with the understanding that they could return them and get their money back if they didn’t like them. Generally, the deposit was about $1,500 and people readily gave their credit card numbers. But once the clubs arrived, the testers realized that they weren’t very good. And when consumers tried to get their money back, they got nowhere. The scam operators would stall and would force people to get an approval code to return the merchandise. The scam artists were able to pull this off for two years and stole more than $6 million from consumers. The operation shut down because of the hard work of a local police department in Orange County, Calif. The officers set up a boiler room operation and caught them at their own game. Whether listeners will see any of the money they lost is yet to be seen. But we’ll keep you informed. Remember that when someone offers you something for nothing (and asks for your credit card number in return), stay away.

Credit card rules take effect - July 24, 2002
We’ve had quite a few calls from former NextCard customers who are in a pickle over what’s happened to the now-defunct company. Because the cards no longer work, a number have asked if they still have to pay their bill. The answer is “yes.” But more importantly, the demise of NextCard has sparked some concern in the federal government. Like many other companies, NextCard was extending too much credit to people who could not always pay it back. As a result, the government is putting new, stricter rules on credit card companies. In the past, credit card companies would reduce your minimum payment and increase your rate to get as much money out of you as possible. Under the new rules, companies won’t allow you to skip payments and they will change how they treat you. In addition, if you’ve been working with one of the phony credit counseling agencies, the bank will no longer be able to report your old credit card debt as if it is current. Under former rules, banks that were working closely with these shifty companies would report outdated information about you. The agencies, which are essentially bill collectors, will also have to start counseling people for real. What Clark wants to emphasize is that your relationship with your credit card company is going to change. Credit card companies aren’t going to issue credit as easily and they’re going to be clear about making you pay your bill. So, we have to do our part and keep our debt down.

Canadian Visa scam - June 28, 2002
MSNBC’s Web site published information recently on a Canadian credit card scheme that you need to know about. Scam artists are sending letters to people in Canada with the words “Visa Department of Investigation” at the top. The letter is supposedly from your Visa card issuer and it says the card has been cancelled because it’s suspected that it may be being used in fraudulent activity. The culprits tell you not to contact your credit card company because the company won’t be able to help you until the investigation is over. It also says that an investigator will be contacting you soon. The phony investigator calls and gets you bank account number and all kinds of other information. Don’t ever believe anyone who tells you not to contact your credit card company. Investigations are always handled by the individual companies. Warn your family and friends about this too. There is no reason this will not spread into the States.

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TweetCredit card payments on up and up - June 10, 2002
The number of people who are behind on their credit card payments is lower than it’s been in half a year! It’s still higher than it was a year ago, but the news is good. We had gotten to a point where we were definitely in the red zone, but the number of people in the red right now is down to about five percent. Anytime the number of people in distress with credit declines, it’s a good thing. Roughly, one-third of us are struggling just to make the minimum payments. As we all know, just paying the minimum won’t get you out of debt. In California, lawmakers have done something about it. The state passed a law that requires credit card companies to tell you how long you will be in debt just making the minimum payments. Basically, if you make the minimum payment six consecutive times, you will be sent a “minimum balance warning” that says what year you’ll get out of debt if you keep paying at that rate. According to the SF Chronicle, the banks are livid and are trying to get this outlawed. But remember there is a system that can help you. If the minimum is all you can pay, try out our 14-day plan. Daily compounding of interest allows you to pay the card off quicker.

Credit card rewards programs - June 5, 2002
There is an offer in the credit card industry that Clark wants you to know about. First there were credit cards that have no minimum fee, then came the platinum and gold colds, and later came the add-on services like free miles and points. The latest reward cards allow you rewards if, in turn, you’ll shop at a particular club or use a certain Web site. For example, Costco has a fee-free card that pays you up to 1.5 percent back on all of your purchases. And, at the end of the year, you get a voucher that can be used in the store or converted into cash. BJs has a card that gives back half a percent a year, and their credit only usable in the store. Orbitz and Travelocity now have reward programs that allow you to use points toward future tickets. It works out to about 1.3 to 1.5 percent back. Walt Disney is also jumping into the act with its Disney Card. You earn points on the card at the Disney properties and then turn them into discounts on purchases. Remember that you have to buy things to earn points, and you should only buy goods or tickets if you were going to anyway. Also, don’t carry a balance on these cards. Pay the balance each month or you will negate the savings you’ve made.

Credit card gadgets and games - May 22, 2002
Credit cards are so desperate for you to use their cards these days they are coming up with all kinds of ways to catch your attention. One is using a flashing light, another has now created mini-cards that will attach to your key chain. The key chain cards will be the size of those loyalty grocery cards, and all you need to do is scan them to make your purchase. Other technologies will allow you to use your watch and its built-in transponder to purchase merchandise. More and more of these convenience tactics will show up to get you to use a particular card. So, be careful when you get a hold of them.

Credit card late fees skyrocket - May 21, 2002
As credit card companies become more and more desperate to make money, they are doing some shady things. But we as consumers need to take some responsibility for padding these company’s pockets. According to Cardweb.com, 60 percent of us will have to pay a late fee on a card. That’s two out of three people. Companies will rack up $7.5 billion, up from $1.5 billion just five years ago. And, what you’re being charged for a late fee has increased over time. Some are as high as $35. In addition, some cards are shortening the grace period on your payment. Instead of 30 days, you now have about 21 days. And, with potential mail problems and time schedules, it could take away as many as 5 or 6 days for “processing.” If your due date is the 15th, for example, the end of the day according to the company could be as early as 5:59a.m. It’s a desperate industry using desperate tactics. So, you have to play it smart as well and make sure your bills get there on time. One suggestion is to pay your bills online. That way you know it got there on time and you have documentation. Secondly, come up with a system for paying your bills. Clark, for example, pays bills on the day the bill arrives. He uses his online bill pay system and sets up the payment for exactly four days before the due date. Another thing is to reduce the number of cards you carry, thereby reducing the potential for late fees. The worst think you can do is have no system at all.

Credit card number theft - May 13, 2002
There is now a world market in stealing credit card numbers, according to a story in the New York Times. There are so many ways to get card numbers these days, it costs as little as 40 cents a number. The crooks stealing the numbers sometimes get them by bribing insiders in the financial business. They've also hacked into the databases of companies to get numbers. And, they then use “runners” who go into banks and get cash advances against the card. Typically, they buy from secret sites that are known only to the criminals. They pay to be part of the ring and they get cards in bulk. The ultimate in credit card number theft is the “CVV2” code, the secret number on credit cards that is supposed to prevent fraud. With this number you can enormous damage. No one has a solid number, but the numbers are in the billions. Visa is experimenting with a system called “Verify by Visa,” whereby you can register your card and it creates a special password for you. That way, if a criminal got your number he wouldn’t be able to use the card without the secret code.

Reduce your interest rate - May 9, 2002
Clark has a great tip for you. A study by the Public Interest Research Group (PIRG) shows how easy it is to reduce the interest rate on your credit cards just by picking up the phone. Approximately 60 percent of us run balances on our credit cards and the average interest rate is about 17 percent. As part of the survey, PIRG asked people to call their credit card company and have their rate reduced. Wouldn't you know - 56 percent got an immediate reduction. Obviously, if you have difficulty making your payments and you are considered delinquent, you won't have as much luck. But if you are running a balance and you pay your bills, you have nothing standing in your way. People who called had their rates reduced from 16 percent to 10 percent on average. Factors considered when offering a new rate are how long the customer has been with a company and how close they are to their line of credit (the lower the better). So, now that you are ready to lower your rate, get ready to pay off that card!

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TweetCredit card society - April 9, 2002
How much is a credit card worth to you? Some people are going to extremes to get the $1,000-a-year black American Express card that is now on the market. One man bought regular Amex cards for all of his friends just to be considered for the card. Those who have been rejected are begging and suing and setting up anti-Amex Web sites. In order to even be considered, you have to have a minimum charge volume on prior Amex cards of $150,000 a year and you must be invited to join. So, why would anyone want to pay $1,000 a year for a credit card? Well, if you stay in fancy hotels, you get upgraded to a suite for free. If you fly often, you’ll be automatically upgraded to first class. Other than that, it’s just prestige. Another development in the credit card industry is beeping cards. An inventor has developed a mechanism that is attached to credit cards and when you open your wallet, that card beeps. Most of the cards in our wallets don’t get used. But, the idea is that calling attention to the cards will sway you to use that one. We’ve turned into such a credit card industry. Now more than 1 million tenants across the country are able to pay their rent with a credit card. This is driving the credit counseling services batty, because people aren’t supposed to use plastic for our basic necessities. It’s just not safe. If you are offered the opportunity to pay your rent in full and you don’t pay off your balance each month, don’t do it. If you do pay off your monthly balance, it might not be a bad idea.

False AMEX due dates - April 8, 2002
Do you carry a traditional American Express card? The Boston Globe reports that, in addition to shortening the period you have to pay your balance, American Express is now posting false due dates on your statements. This applies to the green American Express charge cards that cost $300 a year and require that that balance be paid in full each month. If you have one of these and are in a panic to get your payment in by the due date, there is no need. The due dates aren’t real and American Express is trying to boost its revenue. One member interviewed for the story said he got a statement with a billing date of March 12 and due date of March 27. He called American Express and was told that the due date was actually April 25. The company simply preferred that the customer pay by that date. Usually, you can add a month to the date on your statement, but call AMEX to make sure you know the real date.

Bogus gold card offers - March 18, 2002
Ironically, as soon as you get into trouble with money or credit card payments, sleezy credit card companies will start bombarding you with applications for their products. One of these outfits will probably try to sell you on “gold cards.” So, what is a gold card? Well, back in the day, it was a card credit company's high-level prestigous card that gave its owner lots of extra features. Platinum and silver cards soon came about, and these also had some level of prestige. But the gold cards we’re talking about are a total sham. Right now there as many as 10 of these outfits in operation. So, how do you know? The first clue is that the name sounds similar to well-known national banks, but isn't. Secondly, there is an application or processing fee. You should never have to pay to apply for a credit card. Thirdly, when the card arrives, you find out that it can only be used to pay for items from a specific store or catalog. Another sign is a rush fee. Be very skeptical when you know you’ve had difficulties with credit. These scam artists will easily take more of your money.

Are you in credit card trouble? - February 27, 2002
Is your credit limit rising at the same time that your income is falling? Are you unaware of what you owe on your credit cards and you really don’t want to find out? Are you using your credit card because you don’t have any money? If any of these apply to you, you are credit ill. Millions of Americans are in this boat and need help. You need to contact your local credit counseling service for help. That does not mean “debt consolidation” companies that pose as counseling services. To find a local legitimate service, go to nfcc.org.

Credit card triple whammy - February 5, 2002
A report out by the Federal Reserve shows that banks are getting tougher when it comes to consumers and their credit cards. This is sort of a 1-2-3 punch that could blind side you if you don't prepare, so listen up. The first change is that credit cards are reducing the grace period between the time your bill is printed and the date it's due. You now have just 20 days to get your bill paid, which can be tough if you're going out of town for awhile. The second change is that companies are now increasing the interest rate on your cards to whatever rate they want if you pay your bill late. This is in addition to the late fee you'll pay if it arrives late. And thirdly, banks are now checking credit card bills from other companies to see if you are paying late. Yes, that's right. With 40 percent of people now paying their bills in full, credit card companies are so desperate to squeeze money out of you that they are spying on your other credit card bills so they can boost your rate. To prevent being had, reduce the number of cards you carry to three, and note on a calendar when your billing cycle is supposed to be. You can also call your company and an automated system will tell you what you owe. And reduce your debt by paying off those high interest rate cards first.

Credit card profiling - January 7, 2002
You may not know it yet, but you're being watched. That's right. Every time you buy something or use your credit card, your behavior is recorded. And, your credit card company creates a profile for you in the process. This is all done through artificial intelligence software. The software knows what you are most likely to buy and what a criminal will most likely do. And it monitors your purchases 24 hours a day. So, when your purchase seems "risky" to the software, your bank or credit union is alerted, and your purchase is either denied or questioned with a call to you. So, if your card is rejected in a store, don't fret. It could be a good thing. About 80 percent of flagged transactions are legitimate, according to the St. Petersburg Times.

Credit/debit card fraud - December 3, 2001
You may be surprised to discover that a thief lifting your credit or debit card number in the old-fashion way is four times more likely to use that number for an Internet purchase.
It's up to you to scour your credit and debit card statements each month for fraudulent use. If you wait too long to report erroneous charges, you will incur steep liability. Report errors as soon as possible both by phone and in writing.
The New York Times reports that Visa members will soon be offered the opportunity to password protect their credit cards. This is a step in the right direction, but there is a hole in this system. The password protect will not prevent fraudulent Internet purchases unless the merchant agrees to use the system. It could take several more months for merchants to join in.

Credit card interest - October 29, 2001
Are you running a credit card balance? Credit card interest rates have fallen somewhat, but not nearly as much as on other types of loans. Many of us don't pay attention to the rate of interest we are charged on a credit card. That's especially true of consumers who pay their balances in full each month. We borrow money from a credit card issuer and pay a large price for the loan. For example, one of the largest credit card issuers, MBNA, borrows money at just 2.5 percent. We can sometimes pay as much as 21% for that same money.
The Wall Street Journal reports that the average rate of interest on a credit card is just under 14 percent.
Do you have a solid credit rating and still running a credit card balance? It's possible to cut your interest rate to 5 percent to 8 percent by moving your balance to another credit card company. Check out Credit Card Goodies or CardWeb for some of the lowest interest rate offers in the nation.
Clark tells us to consider a Wachovia credit card that offers a prime interest rate. The catch is that the cards annual fee is $88. Overall the savings on interest could be tremendous. Don't pay more than 9.9 percent if you have good credit.
Watch for pre-approved credit card offers that come in the mail. Study the offer and interest plan and then contact your credit card issuer to see if they will match.
Credit card balance transfers can cost you money and as much as 3 percent of the balance. Watch out for gotchas. Also pay close attention to terms such as "fixed." The word fixed means nothing unless it states through a certain year or for life. The bank could re-adjust the interest rate with a 15-day written notice and send that "fixed" rate sky high.

Safe & guaranteed! - October 4, 2001
Pssstt! Clark has a safe and 100% guaranteed return on your money! He'll guarantee a return of up to 17%. How? By investing in yourself and in your plastic credit cards.
Each dollar paid toward credit card debt isn't a dollar saved, but a $1 toward a high interest rate that you'll never have to pay.
Even if you have a favorable credit card interest rate of 7.9% or 9.9%, dollars applied to getting that debt paid down is still a great idea.
No credit card debt? Apply yourself and put as much as you can toward any outstanding personal loans or auto loans.
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Do you have an old IRA? Have you considered converting that IRA to a tax-free Roth IRA? You will have to pay taxes on the IRA during conversion, but the Roth will provide more funds at time of retirement. Investors age 45 or younger will have the advantage of time and growth before withdrawal at retirement. There are direct benefits to the conversion since the account has less money in it now to tax.
Visit Vanguard for tips on a IRA conversion to a Roth IRA.

Paying off debt - October 3, 2001
Good news: 44% of Americans are paying off credit card debt in full with each monthly statement.
Bad news: That means 56% of Americans are delinquent on credit card payments, according to the American Bankers Association.
Message: You will never get rich paying for a lifestyle with plastic.
Use credit cards as a payment system, not as a borrowing system.
Many credit card issuers have reduced the grace payment period to just 20 days. American Express was one of the first to move to 20 days.
Be careful with this new grace period as the date clock will start ticking the minute the statement is issued. By the time the statement is handled, mailed, opened and payment returned, you could be close to incurring late payment fees of $30.
Clark suggests that you pay the bill the day it arrives.

Credit card debt - September 24, 2001
The Boston Globe reports that 44% of Americans are now paying off credit card debt in full each month. Just three years ago only 25% could manage to pay off balances in full each month.
Credit card companies label consumers who take care of monthly debt as deadbeats, or unprofitable customers. Who cares about that? You're paying off debt and starting to save money for your future. That's much more promising.

Credit card debt - September 6, 2001
In the last twelve months, banks have had to write off $3 billion dollars in credit card debt. That's a huge consumer default and up more than 27% from one year ago.
Take this statistic as a signal of concern. Americans are just carrying too much debt of all types. Think!
Is your financial house in order? What would happen if you lose your job?
More than 60% of Americans cannot pay off their credit card balance each month and only make minimum payments. If you are one of these Americans, just say "no" to credit cards and put them in the deep freeze. Take the cards out of your wallet and put them in a plastic bag with a little bit of water. Then, place the bag in the your freezer along with the ice cubes.
Consider transferring your current credit card debt to ones that offer from 7% to 9.5% interest. Visit BankRate for a search of cards offering these rates. Those aren't teaser rates, but annual rates.
Also consider making credit card payments every 14 days rather than once per month. Why? Credit card interest is calculated daily. The more frequently that you throw money toward your balance the quicker it will be paid off. Invest In Yourself gives you more information on this quick payment method.

Drowning in debt - August 22, 2001
The cover of the current Newsweek Magazine looks at the huge amount of debt Americans carry and how our philosophies about money have changed over generations.
The story looked at three generation members of one family. The elder grandfather never bought anything without paying cash. He even paid cash for his first home. His daughter carries an auto loan and often uses credit cards. His granddaughter, age 29, has $8,000 of credit card debt, carries a $438 monthly auto loan and makes $40,000 annually. She says that she's living a lifestyle she wants to be accustomed to.
Here are other interesting facts on the typical American consumer from the Newsweek article:
• $1 of every $7 earned is spent on paying debt.
• $1 of every $5 earned is spent on luxury items.
• $1 of every $4 earned is spent on everyday living expenses.
• .50 cents of every $1 earned is spent on stuff we just want to have.
• 25 years ago the average family saved 15% of earnings.
• Today the average family saves nothing of their wages.
• Spending today is up 40% from 25 years ago.
• Nine years ago, most consumers purchased a new car with 25% down payment.
• Today new car are purchases with just 7% down payment.
• In the mid-80's most Americans had a 70% equity in their homes.
• Home equity is down to 55% today.
We borrow routinely regardless of our family income. How can you take control of your destiny? This isn't a game and the one with the most toys won't win anything. Your life and your marriage may be calmer when you take control over your spending. Ask yourself what is necessary in your life. Is that cell phone a necessity? Is cable TV a necessity? Look to see what your money is being spend on. Do you really need it? Prepare for your rainy day. If you don't, expect a flood. Keep your debt at a minimum with these helpful tips from Newsweek.

Students & credit cards - August 20, 2001
New and returning college students may be facing a grim financial future that they haven't prepared for.
College students are the #1 prime target of banks issuing credit cards with incentive lures such as free t-shirts, shopping coupons. Students can't face the consequences of huge credit card debt. Parents become the payer of last resort.
Some colleges have banned credit card operators from campus. Others invite them since the college gets a kick-back revenue from the card issuers.
You need to educate your teen student about the dangers of credit card debt. BankRate offers 10 Steps to follow in the Back-To-School Check-Up section.

Target / chip cards - June 20, 2001
According to the Wall Street Journal, 36 million Americans carry a Target charge card. The retailer will soon start to offer those card holders a device which will be attached to their personal computer that will offer savings coupons created specifically for that customers spending patterns. The savings will be offered in trade for this spying on how we buy goods.
Those that participate will be offered a new type of card that has a chip to detect all Target spending patterns.
Soon the medical industry will issue similar chip card that will be able to store a lifetime of medical history.

Credit card interest - June 19, 2001
There are several credit card operators that have an interest rate floor that many consumers don't know about. Do you have an adjustable interest credit card? That floor, or the lowest interest rates can drop, may actually be too high. As the Federal reserve cuts interest rates most credit card holders of adjustable rates should be paying about 13.9%. However, many are still being charged 15% to 16%.
Credit card issuers can change any terms of the card with just a 15-day written notice. Check out the terms of the cards you hold. You could be paying too much.
This is another reason why it's so important to get out of credit card debt as soon as it's possible. Once you've gotten the balances down to zero, pay off any charges each month in full.

Student debt - May 16, 2001
Today, one in three college students have 4 or more credit cards and the amount of debt they carry has increased over 50 percent in two years. Students with credit cards now owe an average of $7,000 in debt.
Why is this happening? In part, it’s because these students don’t pay the balance off each month and credit card companies reap the benefit of the finance charges. Also, when students get too far in debt they can usually rely on Mommy and Daddy to help them out of emergency situations.
Banks are stumbling over themselves to get these cards in kids’ hands and students claiming bankruptcy is up 50 percent because of it. Not only are the banks raking it in, colleges themselves have a stake in getting their students hooked on debt, as well.
A recent news report revealed that the University of Michigan made $1 to $1.5 million in commission from students signing up.
Parents should not only teach their children about the risks of credit card debt, they should offer logical consequences and rewards for not participating. Clark suggests offering bonus money for putting money into savings.
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In addition to credit card debt, many students also have to deal with student loan debt. One Web savvy ex-student may have a solution to help. He has built gradfree, a web site that sends pleas to family members and friends of students, asking for a contribution. The idea is instead of buying pens or a briefcase for graduation, you can give a little money to help pay down the student’s debt. Clark thinks it’s pretty ingenious.



Wal-Mart credit cards - May 14, 2001
Have you received a Wal-Mart credit card through the mail without even asking for it? Former Montgomery Ward credit card holders are being sent cards in the mail by GE, the past owner of Montgomery Ward. GE also conducts a credit card program for Wal-Mart and is using Montgomery Ward customer lists for this mailing.
A federal law prevents unsolicited credit card mailings, but GE has found a federal loop hole that permits them to send what they consider to be replacement cards.
The personal finance reporter for the Washington Post was infuriated to receive this unsolicited card. GE claims a letter notifying customers precedes the credit card mailing.



Opt out! - May 8, 2001
You have an assignment that's due by the end of June. It's dull yet very important.
You must contact financial institutions you do business with to tell them to keep their cotton-pickin' hands off of your personal financial information. What's this about?
The government gave the go-ahead green light for banks, brokerage houses, credit card operators and insurance companies to sell your personal financial data to other companies for profit. Instead of notifying customers of their intentions, we must take the step to contact them to say NO. Some institutions are mailing out forms filled with gobbly-gook, double negatives and sentences up to 25 words. These forms are referred to as opt-out forms. You must sign, or you'll be sold down the river.
Clark lists Charles Schwab and Bank of America on the Honor Roll list for informing customers that they will not sell personal data. What about the others? Notify them before the end of June.
Visit this link at ClarkHoward.com for a list of popular major credit card issuers and bank toll-free numbers. Or, visit Privacy Rights for more information on opt out forms and your rights.



Fake Visa/Mastercard - May 2, 2001
Clark constantly warns consumers against using 'fake' credit cards issued by Visa and Mastercard. These popular cards are often automatically sent to bank customers to use in place of standard checking accounts, ATM's or traditional credit cards. Checking accounts are debited with each use.
Clark and Team Clark Howard constantly hear from consumers that encounter enormous problems when these debit cards are stolen and their checking accounts are wiped out. In a majority of cases, banks are completely non-cooperative in restoring the money to accounts. This is the opposite of what would happen if a thief steals a traditional credit card and charges up a storm. Under federal banking laws, a consumer's liability is zero for these fraudulent charges. With the debit card bank have often refused to pay overdraft charges or other penalties incurred by the account holder.
The vice-president of Visa International spoke with Clark on-air today and told listeners that member banks issuing Visa debit cards must cooperate with consumers and restore checking balances within 5 days. He claims that no one should have to pay a penny in penalties and that debit card holders have the same rights and protections that traditional credit card holders have.
There is no one hot-line to call if your Visa debit card is stolen. Instead it is suggested that you work with your bank and merchants to resolve the fraudulent charges.
Clark does admit that a debit card is a good budgeting tool. Yet he is still mystified why debit cards don't have PIN number security to keep these frequent occurrences of fraud from happening in the first place.


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