The brakes might have been put on the government’s Cash for Clunkers program, but GM isn’t so anxious to give up a chance at another strong month of sales. That’s clearly the reasoning behind yesterday’s announcement, geared to consumers who might be on the fence about purchasing a new automobile.
What did GM roll out? A 60-Day Satisfaction Guarantee, which gives new customers the opportunity to trade in the vehicle they purchased if they’re not satisfied. As long as the vehicle has less than 4,000 miles on it, customers can return it between 31 and 60 days after purchase for a full refund-including tax.
If you’re interested in trying out a new GM vehicle, risk free, act quick-the offer ends on November 30th. Still not crazy about spending a bundle on a new car? The real deal might be found in the barely-used vehicles returned to the lot after the November 30th cutoff date.
And note: The deal doesn’t apply to Saab, Saturn, Hummer or Pontiac models.
Yesterday, Hoda, Kathie Lee and I sat down with our first mini-money makeover candidate, Kelly Whalen. Watch the video below to see how we helped her to reign in her weekend spending and be sure to tune in next Monday as we help another viewer makeover their finances.
It was nearly a year ago that we saw the collapse of one of the country’s largest investment banks and the dive into the deepest recession since the Depression. Today on Wall Street President Obama lit into investment bankers.
“Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them,” he said. And later, “Hear my words: We will not go back to the days of reckless behavior and unchecked excess at the heart of the crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses.”
My question is: Will consumers and investors be guilty of the same? Individuals, unlike Wall Street, are looking saner than over the past few years.
We’ve learned, over the last year, to spend less and save more. According to a recent study by HSBC, over the past six months, 55 percent of survey participants have cut back on leisure activities, 46 percent have cut back on travel and 40 percent have cut back on electronics spending. We’ve learned that a night in with Netflix can be just as good as a night at the movie theatre. And thanks to public figures (namely Michelle Obama) we’ve learned that Talbot’s and J.Crew can be just as chic as couture. Going hand in hand with frugality is saving. Over the course of the past year, we’ve learned that saving for a rainy day is more important than ever. Today, the U.S. savings rate has climbed from 1.2 percent at the beginning of 2008 to an average of 5 percent during the second quarter of this year.
We’ve learned — once again — that you can’t time the markets. Individuals who pulled out after the fall were unfortunately many of the same that missed the recent 50 percent run. (Missing just the best 20 days over the past 20 years would cut the return of an investor who had plowed $10,000 into an S&P 500 index fund from $93,000 to $39,000.) That’s why I still believe that the best strategy is to More…
On tomorrow’s show, Jean talks with Kristin Armstrong, former wife of Lance Armstrong about her new book “Work in Progress: An Unfinished Woman’s Guide to Grace.” Hear her tips on how to lead a more graceful life by tuning in at 12pm EDT to XM 156 or SIRIUS 195.
I am curious about consumer credit counseling. Can you tell me how it affects your credit? Is it as bad as filing bankruptcy?
-Kelly, Oldsmar Florida
You’re right-using consumer credit counseling to manage your debts can potentially affect your credit score. What may surprise you, however, is the fact that when your score is calculated using the FICO scoring model, whether or not you’ve received counseling won’t affect your score. “Any notation on a consumer credit report indicating that the consumer is or has been involved in credit counseling is ignored by the FICO scoring model,” says CardRatings.com’s Curtis Arnold.
However, what you do with the advice you get from your consumer credit counselor is another matter. For example, if a counselor advises you to manage your debt or credit cards a certain way, and you follow through with that advice, it could potentially have a negative impact on your score.
One thing is for certain though; getting credit counseling will have much less of a negative impact on your credit than bankruptcy will. “The negative impact of credit counseling is fairly minimal, whereas a bankruptcy has HUGE negative implications. For example, according to Credit Counseling of Arkansas, your score can drop as much as 100 points if you file bankruptcy,” adds Arnold.
If you decide to move forward with credit counseling, a good way to start looking for help is through the National Foundation for Credit Counseling. The NFCC is a national, nonprofit network of counselors whose mission is to help you get out of debt. Through the NFCC, counseling is available by phone, online or More…
Managing finances can be tough. It’s even tougher when you have a new baby on board. On tomorrow’s show, Jean talks with financial journalist Stacey Bradford about her new book “The Wall Street Journal’s Financial Guidebook for New Parents.” Catch all of their tips tomorrow at 12pm EDT on XM 156 or SIRIUS 195.
Photo by Gil Vaknin
If you lost a job, how long would your nest egg hold out? For six in 10 Americans, the frightening answer is less than 90 days. For four in 10 it’s an even more frightening less than 30 days.
And how would your family fare in the process? That’s the question posed by a prime-time special from the folks at Sesame Workshop in collaboration with David Letterman’s company Worldwide Pants and Lookalike Productions. Families Stand Together, hosted by the husband and wife team of Al Roker and Deborah Roberts – in which I was fortunate to play a role — airs Wednesday at 8 p.m. on PBS stations across the country and will be available at SesameWorkshop.org thereafter. It takes a look at the experiences of five families who have experienced job loss or other economic setbacks. More…
Elmo and I joined Bob Shieffer on Washington’s Unplugged a few days ago to talk about our PBS special, Families Stand Together: Feeling Secure in Tough Times. You can catch it on Wednesday, September 9th at 8pm EST. In meantime, check out our chat with Bob:
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When it comes to making tough decisions, a little bit of perspective can go a long way. On tomorrow’s show, Suzy Welch best selling author of “10-10-10,” shares her 10-10-10 decision making philosophy with Jean. Tune in tomorrow at 12pm EDT on XM 156 or SIRIUS 195.
On Monday’s show, Jean talks with “Smart Girls Marry Money” authors Daniela Drake and Elizabeth Ford, about why they think marrying for financial stability might be wiser than marrying for love. Hear what they have to say tomorrow at 12pm EDT on XM 156 or SIRIUS 195.
