Earlier this week, Citigroup reported earnings of $4.4 billion for the last quarter, along with its best turnover for the last couple of years. It managed to leave behind JP Morgan and Bank of America, its closest competitors, in terms of earnings. The management of the bank claimed that it is now out of all the difficulties that it faced during the recession, because of which it had to be rescued using taxpayers’ money. [Read more…]
Homebuyers Tax Credit Stimulus Ending Soon
Real estate agents and mortgage brokers have noticed a sudden increase in the number of people who want to buy a house. This is because the first time homebuyer tax credit scheme is drawing to a close, and people have less than two weeks left to finalize their contracts for purchasing a house. [Read more…]
How to Ensure a Comfortable Post-Retirement Life
People are often unable to retire as early as they had planned. Either they do not have enough money in their retirement fund or they have debts piled up, and they have to keep working to get rid of them. To be able to retire early, you have to carefully plan your finances and maintain a strict control on your expenses. [Read more…]
How to Save Money While Eating Out
Eating out can be a major source of wasteful expenditure. It does not mean that you should completely avoid restaurants. All you need to do is to act smartly when you are making this expense.
Don’t be impulsive
Get rid of the habit of stopping by at restaurants every now and then. Instead, you should plan the days you will be going to a restaurant. Keep a track of your weekly or monthly expenditure on eating out. Allocate some money for this expense and do not exceed your budget. [Read more…]
How Safe is Banking from a Mobile Device Such as Your Cell Phone
Mobile banking has become the fastest growing segment of the banking industry. This segment is not only increasing efficiency of the banking systems, but also has made the banking experience hassle-free and more convenient for the customers. According to a survey, 12 million people were using mobile banking services in 2009. With the increasing usage of mobile banking, the number of people availing these services is expected to rise to 45 million by the end of 2014. [Read more…]
Save Money by Making Spending Difficult for Yourself
Most people are prone to making easier choices rather than rational choices. If you want to manage your finances and avoid spending too much money, you need to condition yourself in such a way that there are lesser incentives for spending. [Read more…]
Life Insurance Planning During Recession
In times of financial difficulties, people often tend to give low importance to life insurance and let the policy lapse to save some money. But compromising on long term financial security is not wise. Rather than letting your life insurance lapse, you can look at some simple solutions to save money on your policy without losing coverage. [Read more…]
How Reliable Are Credit Card Debt Settlement Companies
Credit card debt settlement companies are always trying to lure customers with attractive offers. Such offers of reducing debt payments by more than half are very tempting for people who are unable to keep up with their credit card payments and are getting buried deep into debt. [Read more…]
How to Prevent Marriage Conflicts over Money Issues
Every marital relationship can have conflicts, and the only way to save a marriage is to learn how to handle conflicts. Irrespective of how rich the couple is, the biggest reason for marital conflict continues to be money. Increasingly complicated lifestyles, mothers getting into and out of jobs, low savings, debts, and many other similar financial issues can trigger such conflicts. So how to get around these problems and save the marriage? [Read more…]
Enjoy the Casino City without Ending Up in a Financial Disaster
Las Vegas is no doubt the ideal place to have a fun-filled and exciting holiday. Unless you are cautious enough, your holiday can also turn into a recipe for financial disaster. People often return from Las Vegas completely broke or financially stripped down. To avoid ending up in such a situation, outlined in this article are some simple tips that you can follow to keep your Las Vegas trip both fun-filled and pocket-friendly. [Read more…]
Probe into Activities of Goldman Sachs in Europe
Goldman Sachs, the investment banking giant, could face a probe into its activities by some of the European countries. Following the fraud case against the company, the United Kingdom and Germany have asked for information from the US Securities and Exchange Commission (SEC) regarding the activities of the company. [Read more…]
Mortgage Debt Payments Fail to Pick Up Despite Economic Recovery
Statistics show that most consumers are choosing to make their credit card payments over their mortgage payments. Even after the recession is well and truly over, this trend has not changed, which could be a worrying sign for the housing market. [Read more…]
Federal Auditors Say SEC Ignored Red Flags against Allen Stanford
The investigations against Allen Stanford started early 2009 February 17 2009, he was charged by the U.S. Securities and Exchange Commission (SEC) with fraud and multiple violations of U.S. securities laws, which led to his arrest by the FBI on June 18, 2009, accused of $7 billion fraud. [Read more…]
Treasury Secretary Speaks on Urgent Financial Matters
Treasury Secretary Timothy F. Geithner recently spoke about some important financial issues on NBC’s Meet the Press. Here are his views on two issues that are likely to be in the news for the next few days.
Financial System Overhaul
Geithner reiterated that America needs some serious financial changes. The Democrats have introduced the financial reform bill, which is likely to ensure that there is a system for preventing future bailouts of financial firms if their failure will hurt the economy. [Read more…]
New Law Changes Flexible Spending Plan
The new healthcare law has brought about some important changes in the flexible spending program. These changes could have a significant impact on your finances.
Flexible spending accounts can be used to keep pre-tax money for certain health care costs. You assess your health care needs and keep some money for the expenses. You can save about one-fifth of the costs in this way by using your pre-tax money. A flexible spending plan allows you to cover a number of health-related costs like over the counter medicines, sunscreens, eyeglasses, dental costs and so on. [Read more…]
Fixed Income Investment Options for Post Retirement Life
Retirement funds and bank accounts, with their falling returns, can no longer guarantee a secure life after retirement. People have become wary of relying on traditional investment options for supporting themselves after what transpired during the financial crisis. An alternative is fixed income investments, which allow you to strike a good balance between risk and return. [Read more…]
Upcoming Bubbles in the Economy
The real estate bubble left a mark on all sectors of the economy when it burst. If economists are to be believed, we are again seeing the formation of some serious market bubbles. Here are some economic bubbles, which I believe could burst in the near future. [Read more…]
Benefits of Having a Money Buddy During Financial Troubles
A ‘money buddy’ is a close friend, relative or well-wisher who is facing the same financial troubles as you are. Finding such a person will help you in many ways when you are having financial troubles. [Read more…]
Alternative Ways to Get Rewards for Spending
Credit card companies had originally come up with the idea of a rewards program in which they give cardholders some benefits for making purchases using their credit card. But these programs are not that attractive anymore as benefits per dollar spent have fallen. [Read more…]
Do Not Ignore Signs of Financial Trouble Act Quickly
People are often caught off guard by financial troubles as they are not prepared to handle them and they do not know how to react under such circumstances. Here are some useful tips for battling your financial problems.
Identify and analyze the problem
You will worsen your financial problems if you do not identify their source immediately. People often go in denial when they see signs of financial trouble. Unpaid bills, missed credit card payments and low savings are some of the common indicators of your worsening financial condition. You should not ignore your problem as you will just get used to that state and will only continue to make it worse. [Read more…]
Future Bailouts Ruled Out by Senate
The Republicans and the Democrats are at loggerheads over various aspects of the new finance bill. But there is at least one thing that both wings have reached an agreement on. It has been agreed that there should not be any more bailouts of major financial institutions using the taxpayers’ money. [Read more…]
Impact of Canceling Unwanted Credit Cards on Your Credit Score
Sometimes we end up with unwanted credit cards that we applied for without giving much thought. But getting rid of such cards is not such a simple decision as it has a bearing on your credit score.
People end up with these cards because they apply for many cards at the same time thinking that they will be rejected for a few or it will be quite sometime before they will be approved for them. They are also under the impression that they will have plenty of time later to decide if they really want the card or not. But that really is not the case, as it becomes tricky to get rid of the card without affecting your credit score negatively. [Read more…]
Insurers Trying to Circumvent Healthcare Law
Major insurers are trying to change their accounting practices in order to bypass some of the restrictions under the new healthcare law. The law requires that large group plans should spend 85% of the premium amount on actual medical care and small plans must spend 80% of the amount. But it seems insurance companies are now trying to pass some administrative costs as medical costs in order to circumvent the law. [Read more…]
Leveraged Buyouts Could Be Revived Soon
Private equity firms have always preferred leveraged buyouts as the main method of acquiring a new company. The past couple of years have seen the private equity market going through a rough phase and activity almost drying up. The last time a major buyout was announced was that of Hilton by Blackstone in July 2007. Ever since the financial downturn, the only major buyout has been that of IMS Health. [Read more…]
How to Secure Private Student Loans
Many students have to turn to private loans after maxing out their Federal Stafford Loans. But you may find it very difficult to get private loans these days. Most of the lenders have stopped or suspended their student loan programs and more will follow suit as federal subsidies to private lenders are withdrawn from June 30. You can now get a private student loan only if you take some active steps towards improving your eligibility.
Improve your credit score
One of the most important factors considered by private lenders when giving a student loan is the credit score of the applicant. Having a good credit score will considerably improve your chances, as other applicants are also young adults who will very rarely have a good credit history.
Another advantage of having a good credit score is that you will be able to get lower interest rates. You can start working on your score by getting a free credit report. You are legally entitled to three free credit reports every year, one from each of the three major credit reporting agencies – Experian, Equifax and TransUnion.
Look for any mistakes in the reports and get them rectified. Also see what you can do to improve your score, such as reducing your credit card debt.
Find a co-signer
If you are a freshman or a sophomore, then you will probably need a co-signer. It is only in the later years, when most students have an established credit history, that lenders consider giving them loans independently. You can approach your parents, family members and even close friends to act as a co-signer. It will help your cause if you can find someone with a healthy credit record.
Look for established lenders
Finding a lender for a student loan is a big challenge. You should approach those banks and institutions with which you have an existing relationship. If you have done business with them earlier, then they will be familiar with your track record and it will be easier to get a good deal. You can also look for an established lender on your school’s preferred lenders list or your local community banks.
Another alternative is to go for peer-to-peer lending sites, which may offer a convenient loan arrangement without a lot of paperwork. But these sites might not be able to help if the loan amount that you are seeking is large.
Dubious Deals Come Back to Haunt Wall Street
The news that Goldman Sachs acted against the interests of its own customers have shaken up the financial world. The Securities and Exchange Commission suit against the company could have an irreversible impact on the industry, but the changes would be positive for everyone else except the banks. [Read more…]
How Rising Interest Rates Will Impact You
The US economy has recovered from the economic recession, but with all the money that has been pumped in by the government, it is now facing the problem of inflation. The Federal Reserve is taking several steps to deal with inflation without touching benchmark interest rates. For example, it has stopped purchasing mortgage-backed securities, which will reduce the rate at which money is entering the economy. [Read more…]
Loan Modification Program Proves to be Ineffective
The Obama administration’s Home Affordable Modifications program, under which distressed homeowners are being helped by modifying their mortgage loans so that they can avoid foreclosure, is likely to prove ineffective.
The latest statistics released by the Treasury Department and the Housing and Urban Development Department show that the number of borrowers who are defaulting on modified mortgage loans is quite high. Last month, the number of ‘cancelled’ loans doubled and reached close to 3,000 from around 1,500 in February. An even larger number have not been making their mortgage payments on time. [Read more…]
How to Increase the Returns from Your Investments
We make investments in order to get good returns on our money. But we often feel disappointed by how our investments fare. A lot of the times, this is because we do not invest in a structured way and don’t even monitor returns regularly from our investments. Here I will discuss some practical ways with which you can maximize the gains on your investments. [Read more…]
How to Manage Credit Card Debt as You Get Older
The retirement years if not planned for, can be accompanied with unwanted financial troubles. A lot of senior citizens find themselves under huge credit card debt burden which takes a huge toll on their pensions and depletes their savings. Besides, with old age comes the additional burden of health care costs such as that for doctor’s visits, medications, and other related expenses. Handling all this along with your credit card debt would be nothing less than a nightmare. [Read more…]
How to Save Money by Avoiding Bank Fees
Banks provide various facilities to their customers, but if you thought all that was free then think again. A bank’s job is to make money out of its operations and for almost every service that it provides, you will be charged a fee.
That however does not mean you can’t do anything to save on bank fees. Here are a few tips to minimize your bank related expenses. [Read more…]
