For Q3 2013, you will earn 5% for purchases from:
- Hotels & Resorts within the Hilton Worldwide portfolio
- Car rental agencies
- Movie theaters
- Theme Parks
PFS
Saturday, June 15, 2013
Citi Dividend Card Q3 2013 Categories
I had written before that I have a Citibank Dividend MasterCard. One of the benefits of this card is that it offers 5% cash back on rotating categories of merchants. The main problem I have with this arrangement is that I always forget which categories are currently offering 5% cash back when I am at the store. As a result, I often miss out on the bonus dividend dollars. In order to help me remember, I have decided to post the categories which change every three months here.
For Q3 2013, you will earn 5% for purchases from:
PFS
For Q3 2013, you will earn 5% for purchases from:
PFS
Thursday, May 2, 2013
How to Get Rich for Free
A fellow personal finance blogger, Barbara Friedberg, has recently published a new book called How To Get Rich: Wealth Building Guide for the Financially Illiterate
. It is a basic personal finance text that seems really good for people who are just getting out of debt, or starting to save money and accumulate wealth.
Best of all, Barbara let me know that from now until May 5, 2013, she is offering the Amazon Kindle
version of her book for free. I think that the regular price is $4.99. To get your free Ebook, just click on the link and choose the Kindle version.
Note that you will need an Amazon
account to take advantage of this offer. If you don't have a Kindle, you can still read it online using the Kindle Cloud Reader.
PFS
. It is a basic personal finance text that seems really good for people who are just getting out of debt, or starting to save money and accumulate wealth.Best of all, Barbara let me know that from now until May 5, 2013, she is offering the Amazon Kindle
version of her book for free. I think that the regular price is $4.99. To get your free Ebook, just click on the link and choose the Kindle version.
Note that you will need an Amazon
account to take advantage of this offer. If you don't have a Kindle, you can still read it online using the Kindle Cloud Reader.PFS
Wednesday, May 1, 2013
Bracketing The Bubbles: Housing Markets Of 2006 and 2013
The U.S. housing market has been on a tear similar to the housing bubble a decade ago. Home prices rose by an impressive 10.2 percent from February 2012 to 2013, the largest year-to-year ascent since 2006. Homes sales in February reached levels not seen since 2010, primarily due to investors. Houston in particular was a seller's market in 2012, with 75,000 homes changing hands, the most since 2007, according to the Houston Association of Realtors.
The factors driving these market conditions today, and those of 2006, are producing the same results, but with contrasting methodologies. Though the mechanisms driving this apparent economic recovery in 2013 are different, the end result could be the same as it was six years ago.
photo ArmchairBuilder.com
Restrictions On Credit
From 2002 to 2006, virtually anybody with a pulse could apply for a mortgage and be approved without providing any statements of income or employment. A subprime mortgage was generally known as a loan extended to a borrower with a credit score below 620. Different lending institutions would hedge the individual risk by extending the loan with terms that are now deemed "predatory."
For instance, an individual with a 550 credit score in 2004 would easily qualify for an ARM (adjustable-rate mortgage) at just about any commercial banking institution. A 2/28 or 3/27 ARM would entice the first-time home buyer because the first two or three years of the mortgage would have a low fixed rate. What few subprime borrowers took into consideration (or simply were never told) was that the final 27 or 28 years of the loan would have adjustable payments that would be significantly higher than the "teaser" rate. But because homes were being purchased as fast as they were being constructed, the market flourished. The balloon payments, among other reasons, caused mass foreclosures and the market crashed by 2007.
The Federal Reserve changed its credit requirements for mortgages after 2008, in what was supposed to be reform to the system. The average FICO score for a mortgage applicant in 2012 was 734, according to a study by MortgageMarvel.com. California, one of the hardest-hit states for foreclosures in 2009, has the highest average FICO score for mortgage applicants today, at 755. Easy credit is a thing of the past, but a new bubble has arrived based on other criteria.
Quantitative Easing
The Federal Reserve began QE3 in September 2012, announcing it would buy (print) $85 billion per month in mortgage-backed securities and U.S. Treasurys, indefinitely. Housing prices have since been on a continual rise, the Dow Jones and S&P 500 both have broken single-day records, and interest rates remain below 1 percent. The one major difference between QE1 (November 2008 to March 2010) and QE3 is that the prices of precious metals have been declining since September. Gold traded for about $1,775 in October 2012, but closed at $1,551.80 on April 4, according to US Money Reserve. Contrarily, gold traded for as low as $712.30 in 2008 before skyrocketing to $1,889.70 in mid-2011.
The global currency wars of today are the likely culprit in dropping the prices of gold and silver, as the Federal Reserve was alone in its QE initiatives last decade. Today all of the major central banks in the world are following suit, and a global market correction is inevitable at some point. The more dollars that are pumped into the economy, the more the housing market will appear healthy. But just as subprime mortgages ultimately corrected the market with mass foreclosures, quantitative easing could ultimately debase the dollar to the point of hyperinflation.
All bubbles burst when they are inflated to maximum capacity. Americans have already seen what happens when market corrections take place. This time around, however, everyone should be more prepared.
About the Guest Author
Tricia Parsons is an economist and freelance writer. She writes for many finance journals and loves sharing her knowledge of finance with others.
The factors driving these market conditions today, and those of 2006, are producing the same results, but with contrasting methodologies. Though the mechanisms driving this apparent economic recovery in 2013 are different, the end result could be the same as it was six years ago.
photo ArmchairBuilder.com
Restrictions On Credit
From 2002 to 2006, virtually anybody with a pulse could apply for a mortgage and be approved without providing any statements of income or employment. A subprime mortgage was generally known as a loan extended to a borrower with a credit score below 620. Different lending institutions would hedge the individual risk by extending the loan with terms that are now deemed "predatory."
For instance, an individual with a 550 credit score in 2004 would easily qualify for an ARM (adjustable-rate mortgage) at just about any commercial banking institution. A 2/28 or 3/27 ARM would entice the first-time home buyer because the first two or three years of the mortgage would have a low fixed rate. What few subprime borrowers took into consideration (or simply were never told) was that the final 27 or 28 years of the loan would have adjustable payments that would be significantly higher than the "teaser" rate. But because homes were being purchased as fast as they were being constructed, the market flourished. The balloon payments, among other reasons, caused mass foreclosures and the market crashed by 2007.
The Federal Reserve changed its credit requirements for mortgages after 2008, in what was supposed to be reform to the system. The average FICO score for a mortgage applicant in 2012 was 734, according to a study by MortgageMarvel.com. California, one of the hardest-hit states for foreclosures in 2009, has the highest average FICO score for mortgage applicants today, at 755. Easy credit is a thing of the past, but a new bubble has arrived based on other criteria.
Quantitative Easing
The Federal Reserve began QE3 in September 2012, announcing it would buy (print) $85 billion per month in mortgage-backed securities and U.S. Treasurys, indefinitely. Housing prices have since been on a continual rise, the Dow Jones and S&P 500 both have broken single-day records, and interest rates remain below 1 percent. The one major difference between QE1 (November 2008 to March 2010) and QE3 is that the prices of precious metals have been declining since September. Gold traded for about $1,775 in October 2012, but closed at $1,551.80 on April 4, according to US Money Reserve. Contrarily, gold traded for as low as $712.30 in 2008 before skyrocketing to $1,889.70 in mid-2011.
The global currency wars of today are the likely culprit in dropping the prices of gold and silver, as the Federal Reserve was alone in its QE initiatives last decade. Today all of the major central banks in the world are following suit, and a global market correction is inevitable at some point. The more dollars that are pumped into the economy, the more the housing market will appear healthy. But just as subprime mortgages ultimately corrected the market with mass foreclosures, quantitative easing could ultimately debase the dollar to the point of hyperinflation.
All bubbles burst when they are inflated to maximum capacity. Americans have already seen what happens when market corrections take place. This time around, however, everyone should be more prepared.
About the Guest Author
Tricia Parsons is an economist and freelance writer. She writes for many finance journals and loves sharing her knowledge of finance with others.
Tuesday, April 2, 2013
Citi Dividend Card Q2 2013 Categories
I had written before that I have a Citibank Dividend MasterCard. One of the benefits of this card is that it offers 5% cash back on rotating categories of merchants. The main problem I have with this arrangement is that I always forget which categories are currently offering 5% cash back when I am at the store. As a result, I often miss out on the bonus dividend dollars. In order to help me remember, I have decided to post the categories which change every three months here.
For Q2 2013, you will earn 5% for purchases from:
See also Discover Card 2013 Cash Back Bonus Categories.
PFS
For Q2 2013, you will earn 5% for purchases from:
- The Home Depot
- Home furnishing
- Home and garden
See also Discover Card 2013 Cash Back Bonus Categories.
PFS
Friday, March 15, 2013
The Rule of 72
How long does it take for an investment to double? This is a question that is often asked, and there is a very simple formula that can be used to estimate the time it takes for your money to double. This formula is called "The Rule of 72". And the rule is:
Suppose that you were to deposit your money in the bank at an interest rate (APY) of 3%. Conceptually, you are giving the bank a loan on your money, and expect to be paid back your principle plus interest. In this example, you can expect your investment to double in 72/3 = 24 years. If you can find an interest rate of 4%, you would expect it to double in 72/4 = 18 years. The rule of 72 is also known as "the rule of 70". Using this rule, if you had an interest rate of 5%, the investment would double in 70/5 = 14 years.
At this point, I would typically go into a mathematical derivation (using such numerical concepts as natural logarithms) showing how this rule came into being. However, I will spare you the gory details this time.
One other thing is that I will mention is a similar "Rule of 115". This rule is used to estimate the time that it takes for an investment to triple in value. Similarly, the rule is:
Again using the 5% interest rate example, it takes 14 years for your money to double. However, it would take 115/5 = 23 years to triple in value. It's all just simple math. Any questions?
PFS
Years to double = 72 / Interest Rate
Suppose that you were to deposit your money in the bank at an interest rate (APY) of 3%. Conceptually, you are giving the bank a loan on your money, and expect to be paid back your principle plus interest. In this example, you can expect your investment to double in 72/3 = 24 years. If you can find an interest rate of 4%, you would expect it to double in 72/4 = 18 years. The rule of 72 is also known as "the rule of 70". Using this rule, if you had an interest rate of 5%, the investment would double in 70/5 = 14 years.
At this point, I would typically go into a mathematical derivation (using such numerical concepts as natural logarithms) showing how this rule came into being. However, I will spare you the gory details this time.
One other thing is that I will mention is a similar "Rule of 115". This rule is used to estimate the time that it takes for an investment to triple in value. Similarly, the rule is:
Years to triple = 115 / Interest Rate
Again using the 5% interest rate example, it takes 14 years for your money to double. However, it would take 115/5 = 23 years to triple in value. It's all just simple math. Any questions?
PFS
Tuesday, February 19, 2013
Bank Error In Your Favor?
Has this ever happened to you, or to anybody that you know? Do banks ever make a mistake in your favor? Many many years ago, I opened a bank account and deposited $1000. A few days after I opened my new account, I noticed that I had significantly more than the $1000 that I put in. I didn't do anything, and a few days later, I noticed that the amount was corrected.
So, has something like this ever happened to you?
PFS
So, has something like this ever happened to you?
PFS
Monday, February 18, 2013
Why Ontario Canada decided to Implement Advance Fee Ban for Debt Settlement
To put a stop on the harmful practices of some debt settlement companies the Ontario Canada has announced advance Fee Ban for Debt Settlement. This new regulation which is already there in other provinces is going to be implemented in Ontario too to protect consumers from the abusive practices of some of the debt settlement companies. According to Margarett Best, the Minister of Consumer Services, various evidences of evil practices by some companies have been located and the implementation of advance Fee ban for Debt Settlement has come up as a measure from the Government for the protection of consumers.
The consumers should be fully informed of their rights before signing up any contract and there should not be any payments unless and until the results are obtained. According to Best the Government is determined to stop such practices in the market. With the decision of implementation of advance fee ban for Debt Settlement Ontario is joining other provinces who have already introduced regulations for debt settlement companies.
A large number of consumers get cheated by the Debt Settlement companies every year in Canada and this is why a number of provinces have brought such regulation and Ontario is an addition to it. For handling such situation in a better way and to protect themselves from being cheated the consumers need to get an exposure of debt-counselling from Consolidated Credit Counseling Services. Such unbiased services help to keep the debts under control and deal with it in a better way.
The decision of implementing advance Fee Ban for Debt Settlement is going to bring a number of changes. First of all, it is going to stop the corrupt practices of debt settlement companies who charge up-front fees from the consumers. Secondly, there will be a limit to the amount of fees that is charged. According to this regulation all the rights of the consumers and the risks associated with it would be disclosed to the consumers and it is mandatory. The contracts are being made clear and transparent and it is going to make sure that set aside funds are under the control of consumers. Moreover, a ten day cooling off period is going to be implemented. As advance fee ban for Debt Settlement is going to be implemented, there will be some other benefits like remedies and enforcement for consumers, establishment of standards of conduct and prohibition of misleading advertising. The provinces like Nova Scotia, Alberta and Manitoba have already launched regulations to stop the fraudulent acts of debt settlement companies.
According to the proposed rule there will be fee limits and it depends on certain conditions. Firstly, when an operator negotiates or arranges an agreement of debt repayment between the consumer and a creditor and is neither incorporated full nor related member agency of Ontario Association of Not-For-Profit Credit Counselling Services, 10% of the amount of debts that consumer owed to the creditor when consumer entered into the agreement of debt settlement services with the operator, can be charged. On the other hand, when the operator negotiates or arranges a debt repayment agreement between the creditor and the consumer when the operator is incorporated full or related member agency of Ontario Association of Not-For-Profit Credit Counselling Services, the consumers need to make a series of debt repayments over a period of time. It can be the amount of one-time administration fee and it is not more than average monthly scheduled repayment of the agreement. Or it can be the sum of 15 per cent of each scheduled debt repayment amount.
For an instance, when a debt settlement provider does not belong to the Ontario Association of Not-For-Profit Credit Counselling Services, make a negotiation and settle for a repayment agreement for a debt amount to $20,000, can charge a fee which will not go beyond $2000 as this is 10% of $20,000. Moreover, this amount would be paid only when the services are completed successfully.
For the members of the Association a typical repayment plan approach is reflected. According to this, in case of monthly payment towards debts of $400 on average, a one-time fee of $400 and not more than that can be charged. In such case an amount of $60.00 from the monthly payment of $400 can be taken up by The credit counselling service as fees as 15% of $400. The rest of the amount of $340.00 will be distributed to the creditors in such case. If there are any additional charges, it is only the charge back fee incurred by the operator from a financial institution in case there is any not-sufficient-funds check or a dishonored consumer check. It is only the actual charge from financial institution that would be allowed to pass through. To deposit such check the charges are typically below $10.
This new legislation of Ontario Canada will help consumers to prevent the rogue debt collection companies and debt relief companies that are keen on making underachiever promises and disturbing marketing practices. It will at the same time target the debt relief companies who demand advance fee or up-front charges for debt related help. When debt settlement business is flourishing, many fraudulent debt settlement companies make the consumers believe that their debt can be fixed easily and debt will disappear within a night. To stay away from such unscrupulous debt settlement companies the people need to have sufficient protection and knowledge of various debt related issues as well.
With Consolidated Credit Counseling Services the consumers get to learn a better way of handling their personal finances and a few issues like how to use credit in a wise way, how to get out of debt and how to budget. When experienced professionals help you to have a better insight on consumer debt strategies and family financial management, you can expect the best solution for your requirements.
The changes that are going to be implemented as a result of introduction of Fee Ban for Debt Settlement in Ontario, Canada are surely going to bring the debt management agencies of Ontario in line with various other provinces like Alberta and Nova Scotia.
Conclusion
To stay away from unscrupulous debt settlement companies the people need to have sufficient protection and knowledge of various debt related issues as well. With Consolidated Credit Counseling Services the consumers get to learn a better way of handling their personal finances and a few issues like how to use credit in a wise way, how to get out of debt and how to budget.
The consumers should be fully informed of their rights before signing up any contract and there should not be any payments unless and until the results are obtained. According to Best the Government is determined to stop such practices in the market. With the decision of implementation of advance fee ban for Debt Settlement Ontario is joining other provinces who have already introduced regulations for debt settlement companies.
A large number of consumers get cheated by the Debt Settlement companies every year in Canada and this is why a number of provinces have brought such regulation and Ontario is an addition to it. For handling such situation in a better way and to protect themselves from being cheated the consumers need to get an exposure of debt-counselling from Consolidated Credit Counseling Services. Such unbiased services help to keep the debts under control and deal with it in a better way.
The decision of implementing advance Fee Ban for Debt Settlement is going to bring a number of changes. First of all, it is going to stop the corrupt practices of debt settlement companies who charge up-front fees from the consumers. Secondly, there will be a limit to the amount of fees that is charged. According to this regulation all the rights of the consumers and the risks associated with it would be disclosed to the consumers and it is mandatory. The contracts are being made clear and transparent and it is going to make sure that set aside funds are under the control of consumers. Moreover, a ten day cooling off period is going to be implemented. As advance fee ban for Debt Settlement is going to be implemented, there will be some other benefits like remedies and enforcement for consumers, establishment of standards of conduct and prohibition of misleading advertising. The provinces like Nova Scotia, Alberta and Manitoba have already launched regulations to stop the fraudulent acts of debt settlement companies.
According to the proposed rule there will be fee limits and it depends on certain conditions. Firstly, when an operator negotiates or arranges an agreement of debt repayment between the consumer and a creditor and is neither incorporated full nor related member agency of Ontario Association of Not-For-Profit Credit Counselling Services, 10% of the amount of debts that consumer owed to the creditor when consumer entered into the agreement of debt settlement services with the operator, can be charged. On the other hand, when the operator negotiates or arranges a debt repayment agreement between the creditor and the consumer when the operator is incorporated full or related member agency of Ontario Association of Not-For-Profit Credit Counselling Services, the consumers need to make a series of debt repayments over a period of time. It can be the amount of one-time administration fee and it is not more than average monthly scheduled repayment of the agreement. Or it can be the sum of 15 per cent of each scheduled debt repayment amount.
For an instance, when a debt settlement provider does not belong to the Ontario Association of Not-For-Profit Credit Counselling Services, make a negotiation and settle for a repayment agreement for a debt amount to $20,000, can charge a fee which will not go beyond $2000 as this is 10% of $20,000. Moreover, this amount would be paid only when the services are completed successfully.
For the members of the Association a typical repayment plan approach is reflected. According to this, in case of monthly payment towards debts of $400 on average, a one-time fee of $400 and not more than that can be charged. In such case an amount of $60.00 from the monthly payment of $400 can be taken up by The credit counselling service as fees as 15% of $400. The rest of the amount of $340.00 will be distributed to the creditors in such case. If there are any additional charges, it is only the charge back fee incurred by the operator from a financial institution in case there is any not-sufficient-funds check or a dishonored consumer check. It is only the actual charge from financial institution that would be allowed to pass through. To deposit such check the charges are typically below $10.
This new legislation of Ontario Canada will help consumers to prevent the rogue debt collection companies and debt relief companies that are keen on making underachiever promises and disturbing marketing practices. It will at the same time target the debt relief companies who demand advance fee or up-front charges for debt related help. When debt settlement business is flourishing, many fraudulent debt settlement companies make the consumers believe that their debt can be fixed easily and debt will disappear within a night. To stay away from such unscrupulous debt settlement companies the people need to have sufficient protection and knowledge of various debt related issues as well.
With Consolidated Credit Counseling Services the consumers get to learn a better way of handling their personal finances and a few issues like how to use credit in a wise way, how to get out of debt and how to budget. When experienced professionals help you to have a better insight on consumer debt strategies and family financial management, you can expect the best solution for your requirements.
The changes that are going to be implemented as a result of introduction of Fee Ban for Debt Settlement in Ontario, Canada are surely going to bring the debt management agencies of Ontario in line with various other provinces like Alberta and Nova Scotia.
Conclusion
To stay away from unscrupulous debt settlement companies the people need to have sufficient protection and knowledge of various debt related issues as well. With Consolidated Credit Counseling Services the consumers get to learn a better way of handling their personal finances and a few issues like how to use credit in a wise way, how to get out of debt and how to budget.
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