Some people have asked if the Federal Government regulates the Interest Rates a credit card company can charge.

Once upon a time, the Federal Government had a national cap on the amount of interest that could be charged on a loan. But after the Great Depression, it was repealed and it was left up to the individual States to place or implement “usury laws”. As you can see by your current interest and default rates, credit card companies found safe havens in certain states that either past laxed or no usury laws.

These clusters were largely formed by a 1978 Supreme Court decision that determined national banks only have to obey the interest-rate caps of the state that they are chartered in, not the state where the bank’s customer lives.

It may sound outrageous but that is why some credit card companies can charge as much as 60% interest and get a way with it. Maybe it’s time to start looking at a National Cap once again.

If you find yourself scrambling to make ends meet or just want to learn more about your financial options, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

90% of all credit cards being issued today come with a variable interest rate. As the Federal Reserve hikes short-term rates, so shall the credit card companies.

Between February 2005 and January 2006, the Fed raised short-term rates by 2 percentage points. During that same timeframe, the average credit card interest rate went from 12.84% to 15.75% a nearly 3% increase. You can expect to see these rates continue to rise.

With the forcing of many credit card companies to raise their minimum required payment formula (borrowers are now required …continue reading the article titled Some Credit Card Trends that can Cost You

It’s been reported that outstanding credit card debt is standing at about $696 billion dollars. Thanks largely to industry lenders that have extended their numerous offers to people with less than perfect credit or with questionable abilities to repay the charges.

Many credit cards are coming with penalty rates above 30%, even if the individual is late on just one credit card payment. That payment might not have even been owed to that credit card company to trigger the higher rates.

Several months ago, credit card companies raised their minimum payment requirements from an average of 2% to 4%.

There are about 45 million people in the United States without health insurance or that are underinsured. 41% of moderate to middle income adults don’t have adequate health insurance coverage.

Homebuilder sentiment slumped to an 11-year low in May …continue reading the article titled America’s perfect financial storm

Studies have shown that when you use credit cards to make a purchase, you purchase approximately 167% more than if you used cash. Even when using a debit card or check, you will spend approximately 82% more simply because of the ease of purchase.

I’ll prove it to you. Next time you go to your local Target, Wal-Mart, Costco, grocery store, etc. bring a specific amount of cash with you for the items that you went to the store to purchase. When you are going to check out, how many additional items (impulse buying) would you have added to your cart? That’s right. None.

However, go back the next week or month using your credit, debit card or check book and see how many additional items you come out with.

If you find yourself making a lot of impulse purchases and feel like your spending is out of control, than begin shopping with cash only. This self-policing prevents or minimized the number of impulse purchase you make. You can even use that money to get out of debt quicker.

To learn more about your options and managing you debt, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

The true cost of our Financial Decisions

Most of us have never been taught the long-term cost of our financial decisions. When we make a decision to purchase something today, we are giving up the value of that purchase in the future.

By making that financial decision to spend just five dollars once a week for a cup of coffee at your local coffee shop, over a forty-year business career can have some serious future financial implications.

If you had invested just that little $5, once a week, you would have accumulated approximately $137,000 of future capital at age 65. With the average net worth of a person 65 or older being just about $20,000 (excluding any equity in a home), do you think that that extra $137,000 would have made a difference in their retirement?

Did you know that the median net worth of all American adults under the age of 35 is just $7,240? Are you one of them?

To learn more about your options and managing you debt, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

Many people have asked about the new Bankruptcy Law changes and how they would affect someone thinking about filing. The short answer: It will cost you more time and money in connection with the filing of a case, but that’s about it.

Here is a brief overview about Bankruptcy and the new law changes:

For the average consumer there are basically two types of Bankruptcies that are available to them. A Chapter 7 (straight Bankruptcy or referred to as a liquidation) and a Chapter 13 (often referred to as a reorganization). Below is a general overview and is not intended as legal advice. You should always consult with an attorney prior to making any type of legal decision. Filing for Bankruptcy is never pleasant and should always be considered as a last resort. Although your credit profile will be affected for 10 years, there are programs out there that are specifically designed to assist a post-discharged consumer with restoring and rebuilding his or her credit profile. Your attorney can discuss this as well as other options with you. Make sure they are in good standing with their Local Bar Association and shop around. Price isn’t as important as comfort in my opinion.

Chapter 7 bankruptcy is designed for …continue reading the article titled New Bankruptcy Law changes –