June, 2009
Last week I appeared on Today to join Forbes Editor Bill Baldwin (one of my former bosses) discussing a story from his shop about things you should buy before the recession ends. Essentially, these are things where prices have fallen because of lack of demand. But as the economy improves, they’re expected to go right back up.
I started fishing around and found some deals that weren’t on his original list. If you are one of those people who have already stocked the emergency cushion, maxxed out the 401(k), gotten the health and life insurance you need, feel your job is secure AND you STILL have money to spare, look no further: More…
Money 911
The segment from this morning’s Today – which you can watch on the video below – is heavy on the mortgage advice, including information on how to refinance without blowing your budget on closing costs, and how to turn an interest-only mortgage into a fixed-rate.
The ink on the Credit Card Bill of Rights (officially the The Credit Card Accountability, Responsibility and Disclosure Act) is barely dry but banks have already figured out they stand to lose big bucks in lost interest and fees from consumers. Not surprisingly, they’re already figuring out how to make up that ground. Despite the fact that the new law won’t go into effect for nearly nine months, some of these fees/charges are already on the way – others you should simply watch out for.
* Higher Checking Account Fees: We’re already starting to see some changes in this arena. In recent changes: Bank of America (BAC) will increase its monthly account maintenance fee on its MyAccess checking from $5.95 to $8.95 per month in June. In particular, customers who don’t maintain significant balances should be on the lookout for additional or higher fees.
* Higher Overdraft Fees: It is already common to see overdraft fees of $35 – sometimes $39 – when you spend more than you have in your account. You’re then charged interest on the amount of money you’ve essentially borrowed to cover your bad checks or debits. Watch out in particular for two new kinds of overdraft fees: A tiered overdraft fee which means that with each successive overdraft the fees go up. Nine out of the 16 largest banks also have sustained overdraft fees, which means if you don’t pay off the overdraft amount and the fee in full, an additional fee gets tacked on. Sometimes it’s a per day fee and sometimes it’s a flat fees.
These overdraft fees – many of which are charged on debit and ATM transactions — are particularly annoying because banks do something called “stacking the debt.” They program their computers to process withdrawals not in the order that you make them but by the largest first. So if the largest withdrawal takes you over your funds, you’ll then incur overdraft fees on all of the smaller ones. And very few banks, according to the Consumer Federation of America, limit the amount of fees they’ll charge you in a single day. So if you swipe at the dry cleaner, the supermarket, the hardware store and the movies in a single day, you could be looking at $140 in fees. Ouch.
What can you do about it? One suggestion: More…
I know, I know, Jon and Kate Gosselin filed for divorce somewhere near their Pennsylvania home today. Having been there and done that, I can say I sympathize. And I cannot imagine what it must be like to go through something so soul shredding in the public eye.
But I can also say there is hope out there. This morning, I gave a speech in Montreal to a room full of credit union executives and board members. I sat next to a man twice widowed. He had lost both wives to cancer, the first diagnosed when she was only 28 years old, the second within a year to lung cancer (and, yes, she never smoked.) He had a smile on his face as he relayed this story courtesy of his third bride, who was at home recovering from surgery. (She is doing well, we hear, and we’re very glad.)
The third bride, a woman named Mary, works in a jewelry store. Not a place to meet men, she says, though she met her husband there (but that’s another story for another day). Late last week a man in his late 20s walked into the jewelry store to pick out a diamond ring for his bride. He’d been saving for this day, he said, since he was in his late teens and put a quarter in a jar — to eventually buy a ring for the woman he’d eventually fall in love with. To that jar he added another quarter, and another, and another.
Over a decade later, he walked into this Wisconsin jewelry store and poured out — onto a glass counter that must have been plenty thick — enough quarters to pay for a $2700 engagement ring. We are told a picture is forthcoming. (We will post it when we get it.) And we wish the groom-to-be, his new bride, our storytelling friend and his third-wife Mary all the best.
We are still believers in love that lasts.
I’ve suggested haggling over everything from your cable bill to your cell phone plan, but what about your credit card bills? These days, credit card companies are wising up to the fact that they’re better off getting some money than no money at all, and they’re more and more willing to work with you if you’re behind on your payments. Recently, I was on Today to talk about the ins and outs of negotiating with credit card lenders. Here’s a video of the segment:
Money 911
Just came across this Money 911 segment from May 13th that was never posted, and thought I’d take a minute to share. Better late than never, right? And the advice is still as good as ever. Check it out:
This week’s question comes from Mark in Waukesha, Washington. He writes:
“We have a car loan, which will be paid off late this summer to early this September. We are considering getting rid of a 1998 Oldsmobile SUV due to gas prices. Is it a good time to buy a new vehicle or a used vehicle or should wait until auto industry quiets down?”
Answer: With the auto industry in turmoil, there are some exceptional deals out there if you’re looking buy either a new or used vehicle. If you plan to have your car loan paid off in the coming months, and you’re in otherwise good financial standing, it could potentially be a good time for you to take advantage of the deals available to consumers. More…
Money 911
This morning’s Money 911 segment on Today covered all the bases: We talked about whether debt can be inherited, what financial steps to take after you have a child, and what your options are if you reach your insurance policy’s lifetime maximum. Watch the video for more:
Hi readers. I’m Julia Venditti, a senior at a high school in Westchester County, NY. I intern with Jean as a last semester class alternative for seniors. Recently I had a job interview and was asked to relate my largest obstacle of senior year. I knew immediately what to say because it was something that I had struggled with for months. I had put everything I had toward achieving my dream. And then I decided that my dream came with too high a price tag.
Early in my senior year, I diligently devoted my attention to college applications. I applied to NYU Early Decision and couldn’t fathom any alternatives. I love New York City and knew I’d always end up there. I love that NYU is practically an international institution and day dreamed about meeting people from foreign countries. Perhaps a friend would whisk me to Brunei on Winter break. Or maybe one of my NYU film buddies would land a spot in Sundance and ask me to accompany him. I felt like anything could happen at NYU. I felt like there was no opportunity for mundane monotony and my life would finally begin. While my indecisive sister applied to 18 colleges in her senior year, I applied to just four (two of which were SUNYs that I applied to as a fallback due to the competitive nature of NYU).
My dad reminded me how challenging it is to get into NYU and urged me to be realistic. On a daily basis, he recited statistics that made my goal seem unattainable. In high school, I was not at the top of my class and I wasn’t the most dedicated student. Nevertheless, I finished high school with a solid GPA and excellent SAT scores. But my dad was convinced that NYU, one of the most competitive schools of the nation, wouldn’t be impressed. He often said, “Stop fooling yourself; they turn down Valedictorians at NYU!” When I did get in, he was floored. I was elated. The next day, I came into school with my NYU sweatshirt on and an ear-to-ear smile firmly in place. I had never known any greater pleasure.
It wasn’t until some time later that the hard part came. More…
* What is it with this weather? It’s rainy — at least in my part of the country — during the week, then beautiful over the weekend. Been this way for the past several weeks. I suppose it’s better than the other way around.
* Money saving tip of the week: Discount parking. Before driving into New York or another big city, decide where you’re going to park then print out a coupon to do it on the cheap. What I like best? Tax (which is a killer in NY at 18 percent) is included!!
* Another form of id theft to worry you? Medical id theft, as reported by my pal Wally Konrad in today’s NYTimes. How can you avoid it? The Times suggests: Keep track of your insurance cards, ask for a copy of your medical records on a regular basis, ask your insurer for a yearly list of everything billed to you. And, it should go without saying, this is another reason to check your credit report — for free — every four months (pull them on a rotating basis) at annualcreditreport.com.
* New to me…. I’d heard of internships. But Doug Hirschhorn, a guest on my radio show this week, suggested that people of all ages looking for a job consider offering to take the job for a test drive — without pay — for two to four weeks. Evidently, it’s a pheonomenon. But I’m on the fence, does it make you look like you really want the job? Or like you have no other options? What do you think?
* Time flies. Last night, I went for the first time to see a tradition in my little village. Before the senior prom the entire senior class gathers in what we call the pavillion and much of the population comes to take pictures and give them a send off. Amazing to see these kids whom I remember from their middle school days looking like grown-ups. What to do with those dresses when you won’t wear them again? How about donating them to the Cinderella Project so other girls can go to their proms next year (bridesmaid’s dresses too….).
Have a great weekend!!
