When applying for a credit card, you must understand the importance of the APR. The Annual Percentage Rate affects how much you pay in interest on your credit card. With millions of Americans are currently in debt, you should understand how credit cards work to avoid falling into the same trap. [Read more...]

The headlines have been full of the banking giant Citigroup and their financial problems. Crying to the government to give them a helping hand at the tax payers expense.

Doesn’t is seem strange that a multi-billion dollar financial company which loans people and business money everyday from financing homes, credit cards, business and everything in between must now essentially go back to the people (their customers) they loan money too and ask for help.

Loan Lessons to Learn

We can learn from all of this money mess on a personal level, break down Citigroup’s problems and apply the principles to our own lives.

One for the things Citigroup did was make horrible lending choices. They went against “best lending practices” and loaned money to people who probably should have not received any loan. True, the borrower did have to ask for the loan and they are at fault also. However, the borrowers did not have the cash reserves, steady income or give enough of a down payment to handle a money storm. Or these same people got a credit card with limits and spending habits out of check with no financial discipline… just like the company that gave them the loan.

Don’t be like Citigroup and make bad lending (borrowing) decisions. Understand the limits, start learning to manage money the same way in good times or bad. Why should handling money be different?

What is your cash reserve now? Do you have an emergency fund? Have you borrowed way beyond your means to repay? Freeze the spending and begin to pay things down.

Citigroup made bad choices and it is costing them dearly. Will your choices cost you? You unfortunately do not have the luxury of heading to D.C. and picking up and check for your bad decisions.

Just because your credit isn’t the best doesn’t mean you can’t get a personal or signature loan from a bank or institution. However, having an excellent credit rating makes it much easier and with lower interest. But, these types of loans are now available and can be a great way to build your credit rating and manage your finances effectively. [Read more...]

Identity theft is the fastest growing crime in the US just got bigger! The US Justice Department confirmed the theft of over 40 million debit and credit card numbers from the following retailers: [Read more...]