Black Voices Blogs

Another Day Older and Deeper in Debt

Deborah Owens — 2008-07-22T08:29:00+00:00

Filed under: Ways and Means, Money Talks, Economy

Are African-Americans cutting off their noses to spite their face when it comes to retirement?

According to a new survey by COUNTRY Financial folks are tapping into their savings rather than taking on new debt which is a good thing.

"Nearly two-thirds (62 percent) of black Americans have cut back their spending and 64 percent have put less money into their savings or retirement to cope with the current economy."

However, the majority of savings are held in retirement accounts and withdrawing from your 401k can cost you big time in the form of penalties and taxes. Here are a few smart money moves you can make without helping Uncle Sam pay down the national debt ...

Dirty Credit Card Tricks

Say "Bye-Bye" to Your Grace Period
No grace period means that you'll start accruing interest the moment you charge something and that can cost you a bundle of "extra" interest. Most credit card issuers have already reduced their grace period from 25 days to 20 days. Many others have eliminated the grace period altogether. Now they are coming up with more and more reasons to take away your grace period. Miss a payment? Stop carrying a balance? Bye-bye grace period!

AOL Money & finance

Punishing You for Being Smart
These fees are the lowest of the low because they penalize you for being a responsible credit card user. Some of the biggest offenders include charging you a fee for:
+ Closing your account
+ Failing to use a card for a period of time (such as six months or a year)
+ Not carrying a balance
+ Every transaction each and every time that you use your card
If your card charges you any of these fees, it's time to look for a new card!

AOL Money & finance

Lowering Your Minimum Payment
Another way some cards try to jack up their profits and lure you deeper into debt is by lowering the minimum payment due on your balance. It used to be cards required a minimum monthly payment of about 4 of your balance, but many now require as little at 2. Don't fall for it! Going from a $40 payment to a $25 payment on a $2,500 balance means it will take you an extra 19 months to pay off your balance!

AOL Money & finance

Inviting You to Skip a Payment
Broke this month? In their infinite generosity (ha!), some cards will "invite" you to skip a payment. This "helpful" offer, which sounds great at first blush, often comes after the holidays when your balance is big and your wallet is stretched. DON'T DO IT! Skipping that payment can lead to a host of trouble from a higher interest rate to possibly having to make extra payments in the future. Are you starting to notice a pattern?! You should be skeptical whenever your credit card company does something "nice" for you without you asking for it!

AOL Money & finance

Tricky Timing
We all know that our payment is due on a certain date or it's late, right? But a new twist being thrown into the mix is having your payment due by a certain time on the due date. If your payment is due at noon, and gets processed at 12:01, you get socked with a late fee AND likely a higher interest rate. Gimme a break! Carefully check your statement so you avoid this trap.

SOURCE: Dirty Credit Card Tricks provided by AOL Money & Finance

AOL Money & finance

Adjust your current contributions. Many people were able to contribute the maximum to their 401k when gas wasn't almost five dollars a gallon. You can find extra money in your budget by contributing up to the amount of your employer match. Please take advantage of free money.

Contribute to a Roth IRA. If you have paid down debt and still have funds at the end of the year in your budget that you want to save contribute to a Roth IRA if you are eligible. You won't get to take a deduction on your contributions and you don't pay taxes when you start withdrawing in retirement. You can also have access to your principal balance penalty free after five years if you're a first time home buyer.

Loan yourself money. If your budget is really tight and the interest charges are adding up on your debt you can pay yourself the interest by taking a loan from your retirement plan. Many plans allow you to take out a hardship loan which you can then repay over a period. However if you leave your employer the loan has to be repaid immediately or it will be considered a withdrawal.

Withdrawal penalties on retirement accounts carry a 10% penalty and are taxed as ordinary income. A ten thousand dollar withdrawal can add up to four thousand dollars in penalties and income taxes. In other words, don't be penny wise and pound foolish.

What are you doing to pay down your debt during these troubling financial times?

Deborah Owens is author of Nickel and Dime Your Way To Wealth. Read an excerpt on her Web site at deborahowens.com

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Foreclosure Fixes To Survive The Storm

Deborah Owens — 2008-07-22T07:00:00+00:00

Filed under: Ways and Means, Money Talks

The mortgage meltdown is no longer limited to folks with less than stellar credit. The Mortgage Bankers Association is reporting that foreclosures are up on conventional mortgages as well. According to the association, "The rate of foreclosure filings for prime fixed loans rose from 0.16% to 0.22%."

What the numbers show is that these are precarious times and the declining economy is impacting Americans from all walks of life. This perfect storm of high gas prices, job cuts and lower real estate values are raising havoc on everyone's household' finances.

This is also when the so called "credit enhancement specialists" and "mortgage loan consultants" prey on folks by promising to help them "workout" loans with methods which anyone willing to do the research could accomplish with the help of a housing counselor for free. The one bright light in this mortgage mess is the amount of assistance that is available by both the federal and local governments.

Here's what you need to do in order to stave off foreclosure and keep your finances in order ...

1. Doing nothing is not an option.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Pick up the phone and contact your lender.
If you are waiting to the last minute to pay your mortgage and are unable to pay your other obligations this is a good sign that you have a problem. Lenders do not want your house and they are under intense scrutiny by government and community organizations. They have options to help borrowers through difficult financial times.

3. Ask for help.
To find help in your local community contact housing advocate organizations Neighborworks at www.nw.org or call the HOPE Alliance hotline at 888-995-HOPE..

4. You have the right to fight.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Foreclosure laws vary by state and every state is different. Visit www.foreclosures.com for access to state by state information.

5. Practice foreclosure prevention.

In other words be proactive.Find information about foreclosure prevention at the Department of Housing and Urban Development It's time to face reality folks. That five bedroom house with the granite counters and entertainment room may be your dream home but don't let it become your economic nightmare. You can always downsize to a smaller home or rent until the economy makes a comeback. This too shall pass

So the question is what are doing to make sure you don't become a victim of foreclosure?

Forclosure Crisis

People demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)

AP
Joseph Barratt, 55, and others demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)

AP
LAGUNA HILLS, CA - MARCH 28: A foreclosure sign stands in the yard of a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: An Orange County Sheriff eviction notice hangs on a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
A crowd of protesters hold up anti-war signs Friday March 28, 2008, in Freehold Township, N.J., as one of the presidential helicopters lands near a company where President Bush was visiting to spotlight the administration's efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the "Hope Now" alliance. (AP Photo/Mel Evans)

AP
Bill Suky, right, points out the arriving helicopter of President Bush Friday March 28, 2008, in Freehold Township, N.J., to wife, Dolores Suky, second right, Lucille Cerbini, left and Francine Jordan, second left, as they stand with a gathering of Bush supporters. President Bush was visiting New Jersey to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)

AP
Diane Beeny holds up an anti-war sign as she stands with a large crowd of protesters Friday March 28, 2008, in Freehold Township, N.J., near a company where President Bush was visiting to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)

AP

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NAACP's March on Mortgage Madness

Deborah Owens — 2008-07-02T08:52:00+00:00

Filed under: Ways and Means, Money Talks

NAACP is holding a call to ARMS and I do mean adjustable rate mortgages.

While on one hand major mortgage companies touted their increase in lending to minorities, the other hand was allegedly pick pocketing hard earn dollars by charging higher fees and interest rates on loans.

The NAACP designated July 2 as a National Day of Action against mortgage discrimination. The day was marked by events across the country, including New York City, Baltimore, Chicago, Detroit, Wilmington, Del., Long Beach, CA, Reno, Salt Lake City, Seattle, St. Louis, Durham, NC, Columbia, SC, Memphis, Nashville, Chattanooga, and Jackson. ...

Forclosure Crisis

People demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)

AP
Joseph Barratt, 55, and others demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)

AP
LAGUNA HILLS, CA - MARCH 28: A foreclosure sign stands in the yard of a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: An Orange County Sheriff eviction notice hangs on a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)

Getty Images
A crowd of protesters hold up anti-war signs Friday March 28, 2008, in Freehold Township, N.J., as one of the presidential helicopters lands near a company where President Bush was visiting to spotlight the administration's efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the "Hope Now" alliance. (AP Photo/Mel Evans)

AP
Bill Suky, right, points out the arriving helicopter of President Bush Friday March 28, 2008, in Freehold Township, N.J., to wife, Dolores Suky, second right, Lucille Cerbini, left and Francine Jordan, second left, as they stand with a gathering of Bush supporters. President Bush was visiting New Jersey to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)

AP
Diane Beeny holds up an anti-war sign as she stands with a large crowd of protesters Friday March 28, 2008, in Freehold Township, N.J., near a company where President Bush was visiting to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)

AP

The goal of the lawsuit and the Day of Action is to push these lenders to make amends for discrimination that they have perpetrated and to stamp out this sort of discrimination for good.

The lawsuit claims that victims in this case had the same credit, income and qualifications as these institutions' other customers. The only difference was that they were African American.

The lawsuit alleges that race was the reason ther loans had higher interest rates. These same consumers were being steered into adjustable rate mortgages when they could have easily qualified for fixed rate or more favorable terms. Some of the defendants in the lawsuit are household names like Washington Mutual Inc., Citimortgage and Suntrust Mortgage.

This is significant considering that these tactics are often associated with lenders who focus on subprime loans to folks with less than stellar credit. So you get a good education, a good job, pay your bills and still can't get a fair shake.

Here's how you avoid being taken advantage of:

1. Don't take the first offer. People spend more time negotiating airline fares than they do when they make the largest investment in their lifetime. Do some comparison shopping. Go to www.bankrate.com to compare rates.

2. Find a money mentor who is knowledgeable about finance.and take them with you. There is strength in numbers and your lender will be less likely to take advantage of you if there is a knowledgeable person asking questions.

3. Knowledge is power. Many community organizations have housing advocates who can help you understand and negotiate a mortgage. Visit http://www.neighborworks.org to find an organization n your community.

Are you in control of your finances or are you letting circumstances control you?

Deborah Owens is author of "Nickel and Dime Your Way to Wealth" and host of "Real Money" on NPR Affiiate www.weaa.org. For more wealthy lifestyle tips visit www.deborahowens.com

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Elon Bomani: Rising from Poverty to Prosperity

Branden Cobb — 2008-06-02T11:00:00+00:00

Filed under: Ways and Means, Money Talks

Elon Bomani has a simple mantra, "I speak positively about money and business."

Through these simple words she has indoctrinated millions on how to think and grow rich.

"I believe in multiple incomes." she says proudly. Bomani also believes, "you are not wealthy until you are making money in your sleep."

Sounds like a simple philosophy, one that anyone would embrace. However, Bomani's own rise to financial and spiritual success was anything but a breeze. She had to hit rock bottom in her life before she took time to re-assess and strategize her goals.

In 2001, Bomani was a stay at home mom from Philadelphia relying solely on her husband's income. She had a brand-new baby boy and her marriage was in a rut. It wasn't long before she and her husband divorced, leaving her nothing. You see, her husband emptied their joint checking account, rendering her penniless. If that wasn't enough, when she sought help she was even denied a bed at a women's shelter.

BV Work And Money - Five Ways To Get Rich

A bed eventually became available at that shelter and Bomani jumped at the chance for a place to rest her head but, she wasn't complacent. After a two week stay at there, Bomani shifted into what she calls a "prosperity consciousness."

"I was not going to play the victim shame game. My greatest fear was that I was going to be in the vicious cycle that my mother fell into; a single mom on welfare." So, she says she worked on adjusting her thinking and devising a way to turn her thoughts into cold hard cash. "I changed my consciousness about money. It's a relationship. If you honor and respect money it will respect you."

This respect of money and a drive for better life propelled the "homeless" Bomani to buy a house in Sacramento, Calif.. Yes, she bought a home.

How? She may not have had much else, but Bomani had perfect credit. "I got 100 percent financing. I got $100,000 from credit cards." She invested that money in herself, taking a chance that she could make the payment and turn her situation around. "Millionaires know you have to take risks and I took one."

Years later, she used the equity she'd built up from her first home and bought a duplex. By time she had enough money to make this transaction, the real estate market was booming. So, Bomani took her California earnings and moved to Houston where she is flourishing.

"I did all of this by becoming financially literate. I want to hit home to people. I tell my story to impress upon them if I can come from the projects of Philly with a dad drug dealer and a mom on welfare; you're still able to live the American dream."

Bomani believes the key is doing exactly what she did.

"You gotta believe in yourself more than what's showing up in your life. It is your birthright to be massively successful. The same source that Tyler Perry, Will Smith and others have access to, you do as well. You're just one thought away from your million dollar idea."

Learn more about Elon Bomani at her website. www.thedynamicdiva.com

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Dwayne Ashley: Funding A Dream

Denver Louis — 2008-05-21T12:00:00+00:00

Filed under: Ways and Means, blog for blog, BlackSpin, Money Talks, HBCUs

For many college students, entering this uncertain job market can often be a daunting and nerve racking experience. But with graduation around the corner for some and summer fast approaching for others, too many bypass one of the most critical stepping stones along the way... getting an internship.

Earlier this year, The Thurgood Marshall College Fund released the book, Dream Internships: It's Not Who You Know, It's What You Know, which teaches students the significance of landing internships as well as giving them a crash course in how to interview for one.

Recently, Black Voices had an opportunity to sit down with Dwayne Ashley, the Chief Executive Officer and President of the Thurgood Marshall College Fund as well as the author of the book.

Mr. Ashley, who has been named to Ebony magazine's "100 Most Influential Black Americans" list for five consecutive years, shares some of his insights on the internship landscape as well as the importance of capitalizing on opportunities.Are internships something you feel that young people are not capitalizing on?

Yes I do. I think that a lot of times, first generation college students don't know about internships and that's just across the board. And I think that people really don't know the fact that a lot of internships are unpaid, which most students don't even think about. If you're a first generation college student, you need to work during the summer, you need to make money. So they're thinking about, "what can I do during the summer to make some additional dollars so that when I go to school, I'll have some money around?" But the way to get your foot in the door is to be willing to take part of that summer and volunteer to do an unpaid internship. It gets your foot in the door and nobody's turning down free labor at this time in the country.

Would you suggest a paid internship as an initial internship?

I think paid or unpaid. Any way that you can get your foot in the door with an area that you're interested in pursuing a career, I think you have to use those opportunities. You've got to sell yourself and you've got to be willing to work for free if you have to. You have to be willing to market yourself that way and show people that you are willing and that through your efforts that you are worth being paid. A lot of times when kids go through an unpaid internship, the company will find a way to try to get them a stipend at the end of it or at end of it, the next summer they'll come back and hire them and pay them to work the next summer, because they realize that this person is really good. Often it is just that first initial stage that you make it in that is often unpaid. Usually if you're really good at what you do, that company is going to find a way to reward you.

Is there a science to getting that dream internship?

It's not a science, but there are certain steps that you have to take. You've got to have a really good letter to introduce yourself. Your resume has got to be tight. If I'm coming in a freshman or sophomore, I don't need to send a two-page resume. I haven't had a career long enough to give me enough experience to have a two-page resume. So make sure your resume is short and simple and focuses on the key things. People don't want to hear about every award you've gotten while you were in high school and college. Talk about the key leadership roles you've been in while you have been in college. Talk about those things that you've done where you've overcome obstacles and some program you've managed that allows you to use those tools desirable to the workplace. That's what people really want to see.

How do things change depending on your experience and your time in college?

I think, if you don't have work experience, whether you're a freshman or sophomore, because this book is applicable to high school students too, you've got to talk about your community involvement and where you've had a leadership role and where you've guided a group of people, because that's a transferable skill. If you're the president or the vice president of your organization and you're leading a group of people to accomplish a goal, that's a situation with management and the workplace. So you can talk about how you inspire people and how you get people to line up behind a goal.

Why are companies not recruiting as heavily from HBCU's as other colleges?

Well the first thing I want say is that, this book is not just for HBCU students. I think that companies have a recruiting budget and we did a study last year to look at how companies recruit. Most companies and government agencies look at ten universities annually. When they go to those universities, a lot of times those are universities where people in executive roles attended those schools, so of course they are going to want you to go back to they alma maters. Secondly, because of budget limitations, they are really trying to look at where they can get the greatest return on their investment. So if they've had a successful track record from going to four of five universities, and they're able to meet their needs, they are going to go where that success is. The key to it is really getting them to open that door and be able to look at some new talent. And that's the role that the fund plays, to really try and synergize that talent that comes from our 47 institutions with the needs that government agencies and corporations have for recruiting talent.

Is the fund strictly for African American students?

Well the fund is for students attending any HBCU, whether you're black, white, Hispanic, American, Asian or whatever. It's for students attending HBCU's whether its undergrad grad or graduate. We don't award our scholarships by race, we award them based on attending our institutions. We do have scholarships where the donor has said that they would like that the student be able to go to any school, but I would say that 80 percent of our scholarships are restricted to public black colleges.

Who are the best HBCU's when it comes to establishing a business relationship with Wall Street?

I think all of them do a good job, but it really depends on where the school is located, what schools they have that appeal to those firms. I can't identify one school over the other because I think all of our schools do a good job of placing students through the partnerships that they have. Now you have some schools that are in urban cities and of course they are going to be more accessible to corporations versus a school that is a rural area. Urban schools can do a better job of in terms of being able to have direct contact with those corporations in those big cities.

How diverse would you say the internship landscape is as far as minorities are concerned?

It's not diverse enough. Corporations need to make a commitment to really bringing a diverse group of interns annually. Some corporations do it better than others because they really do have programs to fuel a pipeline of students that are diverse. Some of them work with corporations like the Thurgood Marshall Fund to really identify that kind of talent.

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Credit Crusade to Regulate the Bloodsuckers

Deborah Owens — 2008-05-16T05:00:00+00:00

Filed under: Ways and Means, Money Talks

A year ago I purchased a laptop on one of those zero percent financing deals. I consider myself as someone who knows how to make a dollar holler and waited a few days before the due date to pay the bill online.

Well imagine my dismay when they asked me to pay ten dollars for the privilege of paying the bill online. It almost sent me over the edge and then they added insult to injury when they added another thirteen dollars for refusing to pay the ten dollars.

I called customer service and ended up speaking to a woman named Joe in India who would not give me her last name but did take the charge off the bill. All I could think was that it is about time someone took a look at the abusive practices being used by credit card companies.

Dirty Credit Card Tricks

AOL Money & finance

Lowering Your Minimum Payment
Another way some cards try to jack up their profits and lure you deeper into debt is by lowering the minimum payment due on your balance. It used to be cards required a minimum monthly payment of about 4% of your balance, but many now require as little at 2%. Don't fall for it! Going from a $40 payment to a $25 payment on a $2,500 balance means it will take you an extra 19 months to pay off your balance!

AOL Money & finance

They give the corner check card cashing stores in the hood a bad name.

At least you know up front what they are going to charge. Well finally my prayers have been answered because there is legislation being drafted that requires credit card companies using these practices to start playing fair with consumers.

The Federal Reserve and Office of Thrift Supervision has proposed legislation that would:

+ Prevent banks from raising interest rates on previous purchases charged to a credit card

+ Not allow creditors to prey on folks with poor credit histories

+ Curb lending to young people

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Food Fright: Tips To Save at the Supermarket

Deborah Owens — 2008-05-04T22:00:00+00:00

Filed under: Ways and Means, Money Talks

Reports of people stock piling food staples like rice have many remembering the stories that grandma used to share about food rationing during the depression.

Recently discount warehouse retailers Costco and Sam's Club put a limit on the amount of rice purchased by customers.

Price increases of this common food source found on tables around the globe have people panicking and purchasing rice in large quantities. Americans are feeling the pain at the supermarket checkout as the cost of staples like milk, butter and eggs continue to rise.

These perilous inflationary times can bust your budget if you aren't careful.

Planning, preparation and process can help you save big at the dinner table. Check out these tips below.

Grocery-Saving Tips

Have a plan. First, take a look in the pantry and refrigerator to determine what you need and make a list. You will avoid purchasing items you don't need or already have.

Take a look at what's in the sales circular and plan your meals accordingly.

Buy fruits and vegetables that are in season and buy at the local farmers market. You'll have fresh produce that hasn't been shipped and it will cost you less.

Avoid b.o.g.o or buy one get one free. Opt for sales that allow you to purchase several of the same item at a discount. You can buy one item and still get the discounted price.

Keep walking pass the gourmet counter that offers prepackaged or prepared foods. You can marinate and season your meat using common ingredients like lemon juice and teriyaki sauce with the same outcome.

Deborah Owens is author of "Nickel and Dime Your Way To Wealth" and host of "Real Money" on NPR Affiliate Weaa 88.9 FM. Visit deborahowens.com

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Got Your Check? Stimulate Your Future

Deborah Owens — 2008-04-28T12:19:00+00:00

Filed under: Ways and Means, Money Talks

President Bush wants you to spend the money. That stack of bills on your desk says deal with your debts.

And the kids, well you know their favorite words are "buy" and "me". So if you're one of the 130 million households receiving some of that economic stimulus money what are you going to do with it?

With gas prices approaching $4 a gallon some of you probably say that's a silly question. But hold on. ...

U.S. Job Woes

U.S. Job Woes
Alan Greenspan, former head of the Federal Reserve, says the country is "in the throes of recession." His remark comes as he defends his chairmanship of the U.S. central bank, rejecting suggestions that his policies contributed to the current rough times. (Photo by Lauren Victoria Burke/ABC NEWS via Getty Images)
U.S. Job Woes
Graphic charts monthly unemployment rate for the past 13 months.
U.S. Job Woes
Commuters climb the stairs from a train station as they head to jobs in New York's financial district on Thursday, April 3, 2008. The Labor Department reported Thursday that the national unemployment rate rose from 4.8 percent to 5.1 percent, the clearest signal yet that the economy might already be shrinking. (AP Photo/Mark Lennihan)
U.S. Job Woes
Job seekers use computers to search for jobs at the Marin Employment Connection April 4, 2008 in San Rafael, California. The Labor Department announced Friday that the national unemployment rate rose to 5.1 percent and nearly 80,000 jobs were cut in March as worries of a recession grow. (Photo by Justin Sullivan/Getty Images)
U.S. Job Woes
SAN RAFAEL, CA - APRIL 04: Copies of the California Job Journal are displayed for people to browse at the Marin Employment Connection April 4, 2008 in San Rafael, California. The Labor Department announced Friday that the national unemployment rate rose to 5.1 percent and nearly 80,000 jobs were cut in March as worries of a recession grow. (Photo by Justin Sullivan/Getty Images)

The extra three hundred to twelve hundred dollars some of you are set to receive could be a starting point for getting your financial act together.

Is now the time for you to open that IRA account you've been talking about?

Could this be the seed money for your child's college fund?

What about the account you've been planning to open to begin saving for your first home?

These are the kinds of goals that many people put off allowing the most important asset of all to dwindle away----time. The hardest part is the getting started part and here are three tips to consider before your windfall is wasted in one of those emotionally driven shopping sprees we all fall victim to.

Stimulus Tip No. 1 Open a Roth IRA account and with the money and set up a monthly automatic investment program from your checking or savings account. Visit www.morningstar.com to find to research mutual funds that will allow you to invest small monthly sums.

Stimulus Tip No. 2 Get a jumpstart on saving for college. Visit www.savingforcollege.com

Stimulus Tip No. 3 Locate a local housing program in your community that will match funds toward a down payment on a home. Learn more at www.habitatforhumanity.org or www.ameridream.org

Remember this is not a free lunch. This economic stimulus will cost American taxpayers 168 billion dollars. So how about stimulating your personal economic situation to create a brighter financial future you can be proud of.

Deborah Owens is author of Nickel and Dime Your Way to Wealth and is host of Real Money personal finance talk show on NPR affilliate WEAA 88.9 FM visit www.deborahowens.com

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SPONSORED BY: BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.

Wealth for One Dollar? It's a Gamble - Top Six Gambling Myths

Deborah Owens — 2008-04-27T06:00:00+00:00

Filed under: Ways and Means, Money Talks

The recent Mega Million winners earlier this year epitomize the American dream -- wealth microwave style. Tonya and Robert Harris were the winners of $270 million from the mega million jackpot.

The question is will this windfall be a blessing or a curse? I believe it depends on whether or not the Harris's' learn the definition of wealth. ...

7 Ways To Save On Gas

Find Cheap Gas

Comparison shop. Be a proactive consumer. Don't just pay the high prices at the closest station. Shop around to find the most competitive price in town. For a little help, visit http://gasprices.mapquest.com to compare prices in your area. You can find the best deal by zip code and street name, as well as check out prices by grade of gasoline.

Buy a Fuel-Efficient Vehicle

Consider buying a fuel-efficient vehicle, a hybrid vehicle, or an alternative-fuel vehicle. It could save you a lot at the gas pump and not to mention help the environment. FuelEconomy.gov offers tips on buying a new fuel-efficient car or truck.

Slow It Down

Gas mileage decreases rapidly at speeds above 60 mph, costing an additional 10 cents per gallon. Aggressive driving can lower gas mileage by as much as 33 on the highway and 5 on city streets, resulting in 7 cents to 49 cents per gallon. Don't get too emotional driving, its supposed to be a time to relax and reflect. Next time you get in your car stay calm, cool, and collected put your car on cruise control.

Stop Idling

Idling gets you zero miles per gallon. The best way to warm up a vehicle is to drive it. No more than 30 seconds of idling on winter days is needed. Anything more simply wastes fuel and increases emissions. Be conscious of your environment and your pocket.

Tune Ups

Most motorists don't realize it's the little things that can make a difference. Fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve your mileage by as much as 40. Dirty spark plugs can cause misfiring which can waste fuel. Replacing a clogged air filter can save gas mileage by as much as 10, saving you 15 cents per gallon. Tune your engine; it'll increase gas mileage by 4. Also, damaged, loose, or missing gas caps, under-inflated tires, poor wheel alignment, and worn spark plugs all contribute to poor fuel economy.

Combine Errands

Instead of making several trips to the cleaners, grocers, post office and the bank, do all of your errands at one time. Before you hop into you car, plan ahead. Keep a checklist if necessary. This will save you time and money.

Park Your Car

Take public transportation. Walk it'll save you money and help you shed a few undesirable pounds. Carpool. You and some of your colleagues can take turns driving each other to work. Talk to your supervisor about telecommuting one day a week.

Here's what I mean, on my radio show Real Money I decided to have an open discussion with my audience on the topic of wealth. My first caller said, "Ms. Owens we don't have to talk about making millions I just want to know how to start investing?" I rolled my eyes and thought to myself why do people feel uncomfortable talking about and using the word "wealth."

In its' most basic form wealth is simply a function of adding to what you already have---at whatever level. Think about this for just a minute. Wealth is not some abstract unattainable result nor is it a word that is limited to lotto winners or millionaires. My response to the caller was that by virtue of the fact he was interested in adding more to what he had accumulated he epitomized a wealthy person. His silence let me know I couldn't possibly be talking about him.

In the context of business, wealth can be defined as producing a product or service and selling it at a greater value than what it cost to produce. Creating wealth or adding value to customers translates into profits for organizations.

On a personal or individual level wealth means to accumulate money and possessions that have value. However, sustainable wealth creation requires that businesses and individuals consume less than the profit or income that they generate and then invest and earn a return on the excess. The point is that I believe it's time ordinary folks come to understand that "wealth" is not taboo or unattainable. Anyone and everyone can build wealth. This is what I know to be true.

The sad fact is that very few lottery winners are able to manage a big windfall. According to financial experts 1/3 of lottery winners end up bankrupt within five years of cashing in their lottery tickets. Here's what I know to be true---we don't value what we don't earn.

For more wealthy moves visit www.deborahowens.com and read an excerpt of Nickel and Dime Your Way to Wealth.

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SPONSORED BY: BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.

Save Money at the Pump - 7 Ways

Yodit Gebreyes — 2008-04-21T14:00:00+00:00

Filed under: Ways and Means, Money Talks

With gas prices increasing everyday, drivers might have to start opening gas savings accounts in order to pay just for their daily commutes.

But thanks to our lovely friends at Mapquest we might be able to salvage our savings for other important investments.

7 Ways To Save On Gas

Now that prices seem to have skyrocketed to four dollars and more in certain parts of the country, Mapquest is trying to help users find stations charging the lowest prices nearest to them.

The site allows you to choose from a list of gas stations closest to your designated location as well as the price for your choice grade. Some days you might feel like being nice to your vehicle and want premium gas or there are those days when you only want to put in enough regular gas to get you home.

Next time you notice you're about to be on 'E' pull over to check out Mapquest and find out where you can fill your tank without emptying your pockets completely. Click here to test it out for yourself and tell us what you think about saving money at the pump.

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SPONSORED BY: BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.

The Wealthy Mindset Tango - Practice Makes Perfect

Deborah Owens — 2008-04-19T08:00:00+00:00

Filed under: Ways and Means, Money Talks

Photo: ABC

I am absolutely hooked on the TV show "Dancing With The Stars" and love to watch how celebrities transform from stumbling lead foots to gliding gazelles. It's not easy being criticized brutally by the judges every week and then being subjected to elimination. R&B heartthrob Mario has been the most recent recipient of barbs from the judges.

Although many of the contestants are considered B-list performers they subject themselves to the ridicule recognizing exposure can reignite their careers. They take the risk because the potential rewards are so great.

This is also true when it comes to your finances.

The current state of affairs in the economy may look bleak -- falling home values, mortgage industry instability and volatility in the stock market. However, wealthy people understand that it is during these times that opportunities present themselves. ...

Having a wealthy mindset means finding opportunity in the chaos and recognizing that this too shall pass. For those of you who have been singing the I'm gonna wait song -- I'll wait til' home prices fall or I'll wait til' stock prices go down, your time has arrived.

And yet what I know to be true is that when markets decline people are less likely to invest because the fear of losing is what prevented them from taking action to begin with. The inability to take risks is what prevents most folks from achieving their dreams and ultimately their ability to create wealth.

If I'm walking down your street right now here are some strategies you can use to increase your risk tolerance without losing sleep at night

Wealthy Mindset Tip #1 Practice makes perfect.
On the program Dancing With the Stars they allow you to observe the stars learning the routines and it takes hours of practice. You can use the same approach to learn how to invest. You can establish a model or what I like to call a practice portfolio. Visit www.money.com to set up your own portfolio. You can research stocks and watch how they perform without risking your money. As you acquire more experience you will gain the confidence to make an actual investment.

Wealthy Mindset Tip #2 Set it and forget it.
Invest small sums periodically in order to take advantage of dollar cost averaging. If you are investing through your retirement plan at work through payroll deduction you are already using this method of buying shares of stock or mutual funds at various prices and minimizing your risk of buying the highest levels. In other words, you don't have to think about when to make a purchase and it becomes a habit that can pay rewards over time.

Wealthy Mindset Tip #3 Hedge your bet.
One of the most difficult decisions to make is when to invest a lump sum of money from a windfall. It's a good idea to invest a portion and to set up the same type of periodic investment plan in tip#2. If you are investing for the long term but are afraid of what can happen in the short term many investment companies will allow you to set up systematic withdrawals from a money market fund and direct them into other stock funds at a specific time of the month. This method will also allow you to average your costs and prevent you from forgetting to invest altogether.

For our 15th wedding anniversary my husband purchased dance lessons.

The first few sessions were deadly as we tripped over each other's feet and then laughed because we thought we were really good dancers. After several weeks with a professional instructor and several hours spent practicing on our own we were able to strut our stuff on the dance floor. No risk, no reward.

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SPONSORED BY: BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.

The Rich Get Rich and the Poor Don't Get Shhh ...

Deborah Owens — 2008-04-18T10:00:00+00:00

Filed under: Ways and Means, Money Talks

While millions of Americans are trying to figure out how to weather a recession the wealthiest of Americans are flourishing. According to a recent report, "Wealth held by rich investors with assets over $1 million will grow their stacks 50 percent in the next five years to $75 trillion."

Is it the same old story as the rich get richer? In the past five years rich clients banked an average annual return of 12 percent which allows them to double their money every six years. Perhaps you believe rich folk have an advantage because of their access to the global private asset management world of hedge funds.

Get real! The truth is that if you had invested in an index fund mirroring the performance of the S&P 500 you would have earned an average return of 11 percent during the same period.
The problem most Americans have is finding the money to invest. In the book , "Nickel and Dime Your Way to Wealth" a parking attendant who worked at a bank watched how the wealthy got rich and followed suit.

Listen to an excerpt. "Nickel and Dime Your Way To Wealth."
What can you do to find the money to invest and build wealth?

BV Work And Money - Five Ways To Get Rich

www.deborahowens.com

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SPONSORED BY: BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.