Prime Rate Credit

One of the more minor players in the credit card industry, but still nonetheless, a force to be reckoned with, Discover, is suing the two big guys, Master Card and Visa, for allegedly blocking their efforts to grow as a business by enforcing what they say are anti competitive rules on their member banks which they say forced member banks not to issue Discover cards, but instead to only conform to issuing the Visa or Master Card.

They say that this has been detrimental to their business, and the complaint goes all the way back several years when there was another complaint filed by Discover that stated that Master Card and Visa failed to close a deal which would have allowed Discover to have their cards issued in a joint agreement that benefitted both parties.

Master Card has shot back saying that Discover’s failure to grow is all about how it has a poor business model and has nothing to do with them having anti competitive rules. It is, after all, a free enterprise system and they say they have done nothing wrong or unfair. Discover is suing for billions, but may also be suing for billions more for that deal that was never closed back in the nineties to make a sort of joint venture, stating they have been unfairly kept down and not as profitable by the other two’s business practices.

Not sure if they have a leg to stand on or not. Guess we’ll see if and when this complaint goes to court. Maybe they will all merge. I have personally never chosen a Discover card because they are not accepted as widely as Master Card and Visa, not because of anything else, and I’m sure that is why they have not been able to be as competitive as well, as I’m sure others feel that way. They do, however, have some really excellent award programs that are worth looking into when making a comparison of credit card offers.

Well, I guess once you become a part of a presidential race, nothing is sacred any more, including credit card debt and all kinds of other fun stuff that normally is not of public domain like your past drug use habits, your spouse’s history and other dirt the other opponent may be wanting to get their hands on to make them look better or to destroy credibility. Well, both John McCain and Barack Obama have let their credit card debt records go public for all to see, as well as what they make in a year, broken down by them and their spouse.

Apparently McCain and his wife are at most likely over 225,000 dollars in credit card debt (and you thought you might have had it bad!), and Obama’s actual credit card debt was not actually noted, but it was noted that he and his wife had about one million dollars invested in a money market account and they had also put some 200,000 dollars into college funds for their daughters, so that does make them seem very responsible.

Obama also has gotten quite a lot of money, to the tune of around 4 million dollars, from book royalties, and his wife is no slouch either, in her earnings as a lawyer and then as a hospital administrator. They both disclosed that they had just recently paid off all of their college loans personally, further adding to their everyman status.

As far as McCain goes, he earned substantially less on paper than his wife did, because she is part of a beer distributorship owned by family, and is on the board of directors, which she garners a paycheck from, and also she has holding in Anheuser Busch and other holdings that are worth a substantial amount of money.

The McCains also disclosed that they have a credit card in the name of someone who is described as an independent (a child or someone else financially dependent on them), and that credit card has an exorbitant APR on it, at over 25%, which is horrible. Maybe they should look into getting a good balance transfer credit card with a low fixed APR for that one, that is truly detrimental to anyone in their debt fighting endeavors.

The skyrocketing cost of fuel is altering people’s plans and behaviors. The use of public transportation has surged upwards as commuters look for less expensive ways of transit for daily work and errands. With the anticipation that ridership will continue to expand, public transit systems will need to increase the number and frequency of routes offered to their commuters.

Riders near major cities have complained about overcrowding on buses and have urged public transportation systems to add on services. With overcrowded conditions on public transit systems, it takes longer for passengers to load and unload which often results in delays.

Public transportaton is trying to work out plans to meet the sudden increase in commuters’ needs. In more remote suburbs where public transportation is scarce or absent altogether, perhaps we will see some kind of a plan on the part of the government to expand and outreach service further in the near future.

Presently, efforts to carpool are on the rise in these areas in response to outrageously high gas prices. Soaring jet fuel prices are forcing airlines to reassess some of their less profitable flights. Often, they are forced to drop certain nonstop flights to certain cities. Travelers will have to make stops or change planes more frequently.

Potential vacationers are often altering their getaway plans and looking for how to have fun in their own back yard. Families are sometimes searching for local outings of interest and adjusting their plans to have maximum fun with minimal travel.

In a Rand - McNally survey, they found that two thirds of families are either shortening their vacation plans or cancelling them altogether. The staycationers are often purchasing backyard recreational supplies to try to enjoy time off at home.

Trips to local zoos, art museums or locally nearby amusement parks can make a staycation both adventurous and fun. With the high cost of gas prices, we are all being forced to cut back on fuel consumption and that, at least, is more ecologically responsible. For better deals on gas, there are some of the best gas credit card deals around to help you earn money back toward fuel for your current fuel purchases will can help ease the blow of this horrible economy and rising gas costs.

If you’ve read any number of financial self help or money guru type books, then you’ve undoubtedly heard the phrase “pay yourself first”. And what does this phrase, pay yourself first, mean exactly? Well, the point the author is usually trying to make by saying this oft-used phrase is that before you purchase frivolous items that are consumable (used up over time, depreciable), and pay your utilities, mortgages, rents and car payments and other expenses, you should first be paying yourself.

That’s all fine and dandy, but when you have the threat of a ding on your credit report from paying a bill late, or a repo on your car, or perhaps a foreclosure on a home, this is not feasible, not by a long shot. I think what they are saying is that if you develop the habit of saving first, partying and enjoying money last, then this is the general idea of paying yourself first.

This would mean less credit card purchases, unless they are on a low fixed APR credit card that is paid down often with little interest build up, and less impulse and “fun” purchases like dinners out at restaurants, entertainment like movies and such and other items that aren’t considered a necessity. Also less vacations and time away from home, or money spent on home improvements unless they are necessary may fall into this category.

Paying yourself first means putting money away in a savings or other interest bearing account before you pay all your other stuff. It’s like a bill, only you’re paying yourself, and should put the same priority on it that you put on any other paper bill you get in the mail every month. It’s a little easier if you have a set method though, so a recommendation would be to set up automatic debits from your account into a savings or interest bearing instrument, or definitely you should take advantage of any 401k or other tax benefitted retirement fund you can be a party of.

That’s really the most ideal way to set aside money to grow for your future, because not only is it tax deferred, but you also usually get a match of some sort from your employer. It’s a no brainer really, and you should also put as much as you can into it - ideally anywhere from ten to fifteen percent of your total gross pay would be the best thing to do. If you can’t do that, then definitely work your budget a bit and make saving for the future a priority. It truly is the only way to building long term, solid wealth and security.

Well, we’ve heard all kinds of theories, but unfortunately the one that’s sticking and seems to be consistent is that we will indeed be paying over four dollar for our gasoline this summer, and there’s not an end in sight that I’ve heard of.

The problem is that our government is trying to talk the major producers of crude to increase their production, to no avail. It’s the whole law of supply and demand that is driving the price up, and even though the demand for gas has reportedly decreased due to the increase in price, it seems to still be working against us.

It doesn’t help that our government has voted against a windfall profits tax on the major oil companies, which means they are not being punished whatsoever for charging astronomical costs for gas at the cost of consumers, padding their wallets. Let me rephrase that. Windfall profits means just that, they are making more profits because of this increase.

If the problem really was that the supply isn’t enough, then wouldn’t their profit stay the same? It just goes to show that they are making more money from this unfortunate situation. It’s hurting the consumer and the economy, further squeezing people who are already maxed out beyond belief. It seems like no one can do anything about it, which makes it all that much more frustrating.

My theory, call it far fetched, is that the oil companies know there is a better alternative to gasoline powered vehicles on the horizon, and they are making the most money while they still can. Just a theory, but I think that is part of what the problem is here. Any thoughts you want to share on this unfortunate predicament are valued. I know there are tons of theories out there, and a lot of venting going on, as there should be.

Well, it’s the latest in a string of bank breakdowns, and although it’s not being called that quite yet, National City Bank, one of the banks that has a lot of local branches around here in the Cleveland area, has been put on what is called a memorandum of understanding with Federal regulators that are looking into what it is they need to get back on track and remain solvent as well as safe with their deposits for their customers. That’s what the FDIC’s for, to keep the customer deposits safe and make sure that no meltdowns like what happened with the great depression happen again.

It is not clear what exactly this means yet for the bank, but it’s not looking too good, and no one has really made any serious offers yet to buy out the troubled bank which got hit hard with the subprime fiasco thanks to a lot of bad loans based on that sort of risk. We’ll see what happens. Hopefully it’s not another Bear Stearns story in the making.

Well, the May jobs report certainly didn’t help the already jittery economy, and it certainly isn’t infusing any confidence into CEO’s about the futures of the companies they helm, and more importantly, the blue and white collar workers that their companies employ. Many CEO’s are reporting they feel not so certain about the future of their company, at least not for the immediate horizon, because of a combination of factors that are going on right now that have the country on the verge of a long economic downturn - aka recession.

Those factors are the weak US dollar, which is at an all time low against the Euro and some other currencies, the fact that the housing market is in the dumps, and the rising gas and oil prices, squeezing consumers, which ultimately trickles down to the companies the provide consumer goods and services. We all suffer in a downturned economy, no matter what you offer or how you make a living.

Heck, just the other day, I saw that some developer in California is so desperate to unload properties that they are offering a buy one get one free sale. Talk about desperate times calling for desperate measures! I also recently read that there are some very high profile foreclosures looming, like Ed McMahon, due to poor financial planning, and Evander Holyfield.

Even Ted Koppel’s feeling the squeeze of housing, since he hasn’t been able to unload his multi million dollar home for three years. He reportedly had to drop the price of his home nearly half just to make it more appealing to buyers so he doesn’t have to keep paying on something he’s not living in.

Jobs are hopefully going to rebound, because the news, which was reported last Friday, already sent stocks plummeting, and are bound to send them plummeting further if the next round of news is bad for jobs as well. These sorts of reports also create a kind of hysteria amongst the population, making everyone hang on to their money even harder, and perhaps sending the country into a further and deeper recession. I like to take the Polyanna attitude on these things as you’ve read in the past, but this is looking like something that will not soon pass unfortunately.

The good thing is, the US economy is a resilient one, and we always bounce back, it’s just a question of how long this time - it may be one of the longer downturns in recent history, some are even saying akin to the depression, but of course not as severe thanks to safeguards put into place. We hope!

Seems like, with the high gas prices and faltering economy, we’re all looking for ways to rake in a little spare change - or a lot of spare change, depending on whether you are one who has also been affected by the massive layoffs that have occurred as of late at many major companies. Unfortunately, some are having to part with their precious belongings to make ends meet until the rough times are over.

Pawn shops are gaining in popularity as more people need fast cash for necessities like food, utility bill payments and gas money. We’re seeing more pawn shop business growth in the last several years as the economy is crunching budgets with high inflation coupled with the increase in job losses.

The way pawn shops work is that you bring in some of your possessions and it will be given to the pawnbroker as collateral so they can give you a loan. Next, the pawnbroker will loan you money based on the value of your collateral.

Once you have repayed the loan with any interest that has accrued, the pawnbroker gives your collateral back. In the situation where you do not repay the loan as agreed, the pawnbroker will keep the possession you brought in as collateral.

The pawnbroker is the person who loans money on the basis of pledged goods. The pawn shop is the place of business for the pawnbroker. A pawn transaction is redeemable within 180 days unless it is renewed and the end result is the power of sale of collateral if the loan is defaulted.

The interest rate is, as an example cited in N. Carolina, a maximum of 2% per month. Annually, that is about the same as rates charged for credit cards. There are other fees to watch out for such as handling, storage or insurance fees.

At the end of the 6 month period, you either have to pick up your collateral or initiate a new loan on your possession. If you do not do this, the collateral then belongs to the pawn shop and they can sell it.

Even with the economic crunch, remember if you are using a pawn shop to gain quick loans, don’t bring in family heirlooms of great sentimental value. In the event that you can’t make the loan payments, your precious heirloom may be gone forever. Keep your collateral to impersonal items you could live without such as high tech electronic devices.

Other options for economic crunches are listing items on ebay or Craig’s list for sale to gain possible quick cash. Garage sales don’t compare as favorably as the resale value on your possessions are often as low as 10 cents on the dollar.

The current credit crunch together with declining home values in our economy has had yet another far reaching effect. Nationwide, banks have begun to freeze consumer’s home equity lines of credit. In the last several months, banks are starting this practice and consumers who are planning on tapping into this source of credit have to check first and make sure it is still available to them.

Many customers are surprised by the credit line freezes as the banks are tightening up on their credit practices. Not all banks are freezing the home equity lines of credit yet, but many are looking into possibly doing this, as they cannot keep up with the falling values of homes and cannot extend home equity lines of credit on homes that are not going to keep increasing in value in this terrible housing market, at least not now.

The reasoning for the tightening of this form of credit is the declining of the value of the home and the protection of the banks themselves and ultimately their customers too. The banks that are freezing the home equity credit lines are notifying their customers via the mail with a letter.

The general rule of thumb for freezing home equity lines of credit is for customers who don’t have much equity left when considering the declining value of the home. New equity lines are becoming restricted to people with excellent credit raings and can not exceed 85% ot he home’s value.

Risk levels have changed dramatically often since the home equity loans were originated due to the changing economic environment. The home equity loans were appealing since the interest rates were low when compared with credit card rates and had the added bonus of being tax deductible.

If you have an established home equity line of credit, check with your bank about possible changes in the credit line. Make sure the rules have not changed for your particular situation, so you can protect yourself in the near future if you were planning on utilizing one of these lines of credit, as many people do, for major expenses or house additions.

Comparing insurance quotes in depth that come in the mail or over the phone may pay off nicely by saving you quite a bit of money. Most of us don’t like change and think that because we’ve had a certain insurance agent for years we shoukd just stay with them.

Without looking into the quotes seriously and comparing each item covered and the deductible involved , we may underestimate the savings potential. Sometimes, the savings may be nonexistent or minimal. In that case, staying with your present company would probably be in your best interest.

Recently, I was curious to investigate a quote I had received in the mail from a competitor for my homeowner’s insurance. The savings on the quote was significant at about $100.00 on my annual premium. After taking a trip to the office of the competitor, I was pleasantly surprised by the financial advantage offered to me if I switched companies. The results were better than I would have imagined.

By changing insurance companies and putting my automobile insurance together with my homeowner’s policy, the savings were sizable. As it turned out, the car insurance was signifigantly less also, especially when combined with the homeowner’s insurance.

For my particular situation, the payment premium per month for both my home and my car was equal to exactly what I had been paying previously for my car insurance alone. The net result financially was like eliminating the entire bill for my homeowner’s annual premium.

This particular scenario is unusually advantageous as even the competitor insurance company admitted. When calling the prior insurance companies, they could not match the prices and were gracious about making the change. Even the existing insurance companies stated that they all go up and down all the time and it pays to periodically compare.

All coverage remained the same even with the savings. If you see a competitor’s quote in the mail and it looks like a savings, it is worth at least a phone call and a line by line comparison of coverage. The net result and bottom line could mean significant savings for you.