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Showing posts from August, 2010

Have you changed your Spending Habits?

A recent study of current consumer spending habits found 33% of consumers plan to maintain reduced spending habits, while 43% are undecided.

Based on the results of the study, it's clear many consumers are either sticking with their "new normal" or are still forming their new spending habits and don't plan to fully return to their old spending habits.

The study of over 1500 US consumers by market research firms Chadwick Martin Bailey and iModerate Research Technologies found that although 24% of consumers only made minor cutbacks to their spending during this economic downturn, another 33% who reduced their spending plan to continue with their new slimmed down budgets even during an economic comeback. The largest group is the 43% of consumers who have reduced their spending and have not yet decided if or to what extent they will go back to their old spending habits.

The study identified four distinct spending categories:

1) Investments in My Quality of Life (vacatio…

Ask the DebtBuster

Q: Mike, I attended your seminar twice at Workforce One and really enjoyed it. I heard on the radio  that there was a new legislation for credit cards that was just released - if your interest rate on a card is high and high due to a reason, you can request to lower it down.They also said if you are late on a payment and your minimum payment is $20, your late fee will be no more than $20. 
How true is all this? I have never been late in my life. My credit cards used to be at a low of 7.99% or 9.99% fixed but they went up about 1 or 2 years ago after that last credit card act where the credit card companies could raise your APR% and make it variable instead of fixed. Can I call my Credit Card company to get a lower interest rate?
A: Yes, the last phase of the CARD Act went into effect on August 22. It restricts how much credit card issuers can charge in penalty fees to no more than the amount of the violation. For example, if a consumer is late paying a $10 minimum payment, the late fee…