“I get a lot of letters in the mail from companies that say they can cut my credit card debt in half. Are these companies legitimate? I feel like I’m drowning.” – Alicia, Georgia
For the most part, no. I’m sure you’ve heard a lot in the news recently about debt settlement scams that target those in dire financial situations. Unfortunately, many of these companies don’t deliver what they promise – your debt cut in half, an end the collection calls, and a fresh start. “The truth is, the process can take years to complete, your credit is going to take a big hit and the large upfront fees mean that you can end up drowning in even more debt,” says Alison Southwick, a spokesperson for the Better Business Bureau (BBB). More…
We all know that shopping makes us feel good. It’s a scientific fact – when we see something we want, it triggers the release of feel-good endorphins and hormones that inspire us to make a purchase – something I talk about in my book, The Difference. But I know from reading many of your e-mails that, in some cases, this kind of feel-good shopping can become a real issue. When you shop compulsively – buying things you don’t need, and racking up debt – it can take a real toll on your life.
My good friend April Lane Benson, PhD, is an expert in overshopping – and how to stop. She authored a book – To Buy or Not to Buy: Why We Overshop and How to Stop – to help compulsive shoppers curb their behavior and live a financially responsible lifestyle. Recently, April let me know about a new study she’s working on to test her treatment for compulsive buyers. The treatment has been a success for more than 100 shopaholics – and it incorporates a series of steps that help to re-shape buying behavior, and keep you from falling back into a bad habit once you’ve fixed it. More…
Earlier this year, the CARD Act went into effect, changing the credit card market as we knew it. Many of the changes were in favor of the consumer: a grace period is now required on interest rate increases, there are new notification rules, and creditors have to consider payments made before 5pm on the due date as on time.
Another provision, though, was a huge game changer for college students: In order to get a credit card under age 21, you have to prove you have the income to make the payments, or get a co-signer. More…
Khaki shorts (5) white tank (2) black sweater (3). Fun scarf to pull it together.
I didn’t post yesterday because I ran off to give a speech to a group of financial planners in Boston (you didn’t miss much clothing wise, I wore the same thing I wore on Day 1). What was interesting to me, though, was that getting dressed didn’t make me as crazy as it had the couple of days before. I knew it would take me less time to choose so I gave myself 15 more minutes on the treadmill – and felt better as a result throughout the day.
On my ride home, I caught up with Barry Schwartz, author of The Paradox of Choice: Why More Is Less and asked him to weigh in on my Sixperiment. He explained that because I had decided to understake this challenge, I’d be less likely to feel it as an imposition than someone who was forced to do it. More…
HOW: David Arrick, like many, found himself – and his source of steady employment – a victim of the recession. After he was laid off, Arrick, who worked in commercial real estate, thought he’d hit it big when he landed a job in Dubai. “But then the global economy took a hit,” says Arrick, and as he packed boxes in his New York City apartment, he again found himself unemployed. “I had cashed out my 401(k) and blown through my savings,” says Arrick, “and I thought to myself, ‘how much worse could it get?’” Fortunately for Arrick, he didn’t have to find out. During a walk around his downtown neighborhood, Arrick’s attention was captured by the around-the-block line outside of a “cupcakery” on Bleecker Street. More…
Today’s expert panel touches on what to keep in mind when co-signing for a student loan. Should you rent or buy a home after retirement? What is the best way to handle payments due for medical expenses? Plus, get some tips on green investing. To learn more, check out the video clip below.
Black skirt (4) White tank (3) Black cardigan (2) — if I need it. (it’s going to be HOT)
For the second morning in a row, I was up at 4 a.m. And again, I was focused on what I was going to wear. This is totally not the point.
I’m an avid fan of the research of Swarthmore College Professor Barry Schwartz, author of The Paradox of Choice. He divides the world into maximizers and satisficers. Maximizers are people who want more, more, more of everything. They couldn’t have a closet big enough with enough choices. There is rarely enough. Satisficers are the opposite. They search through options until they find one that is good enough, then they call it a day.
Schwartz says that being a satisficer is better. It makes you happier over time and actually enables you to get going rather than getting stuck. I believed, in thinking about the concept of six-items-or-less, that it would move me in the right direction More…
Last week’s NY Times story on the six-items-or-less phenomenon, where you choose six items of clothing, then commit to wearing them (and only them) for a month caught my eye. Could I do this, I wondered? Would I like it? Hate it? Somewhere in between? I weighed the pros and cons.
Pro: I am one of those people who have trouble getting dressed in the morning. I encourage my daughter to pick hers out the night before and I should really do the same. Sometimes it takes a few tries, which is especially difficult when you’re trying to get from the suburbs to the city for an early segment. This could be a time saver.
Con: It’s summer. And although I work professionally, I also work from home. That meant picking items that could go both casual and to an office. That would be tough. More…
I’d like to open my first credit card and am looking for some advice. I am a year out of college, so I won’t be spending a ton of money on the card, under $1000/month (and plan on paying it off immediately every month). Since I won’t be spending much money on it, I would like a card with rewards that I will be able to realistically use. Besides that, being new to the credit card search, what else should I look for? – Nicole, Washington, DC
Opening your first credit card is a step in the right financial direction! It’s important to establish your credit early on – it’ll determine your eligibility for loans, mortgages, and new lines of credit throughout your lifetime, and your credit history is a big More…
You know how important your credit score is – but unemployment and the recession have played a role in lowering the average credit scores of Americans. So what can you do to get your score up if it’s falling into high-risk territory? Watch the clip below from this morning’s edition of Today’s Money to learn a few tips that can help you gradually improve your score.
“I get a lot of letters in the mail from companies that say they can cut my credit card debt in half. Are these companies legitimate? I feel like I’m drowning.” – Alicia, Georgia
We all know that shopping makes us feel good. It’s a scientific fact – when we see something we want, it triggers the release of feel-good endorphins and hormones that inspire us to make a purchase – something I talk about in my book, 
Khaki shorts (5) white tank (2) black sweater (3). Fun scarf to pull it together.
WHO: David Arrick
Black skirt (4) White tank (3) Black cardigan (2) — if I need it. (it’s going to be HOT)
I’d like to open my first credit card and am looking for some advice. I am a year out of college, so I won’t be spending a ton of money on the card, under $1000/month (and plan on paying it off immediately every month). Since I won’t be spending much money on it, I would like a card with rewards that I will be able to realistically use. Besides that, being new to the credit card search, what else should I look for? – Nicole, Washington, DC
