What percentage of your income do you save? It should at least be 10% and increase as we age. If you are not there yet, it’s something to be working towards.
What percentage of your income do you save? It should at least be 10% and increase as we age. If you are not there yet, it’s something to be working towards.
Here are 4 credit cards that industry experts told CNNMoney are among the worst in America for their sky-high interest rates and ridiculous fees.
1. Applied Bank Unsecured Visa Gold Card
The Applied Bank Unsecured Visa Gold Card advertises a $500 line of credit and charges you an annual fee of $125 for the privilege. After the first year, that fee jumps to $180. Plus, the interest rate on the card is a high 29.99%.
2. First Premier Bank MasterCard
It doesn’t get much more expensive than First Premier’s card, which has an APR of 59.99% and fees of more than $120 a year.
“You have to be awfully desperate to have that card and pay that kind of APR,” said Curtis Arnold, founder of CardRatings.com. “But I don’t know why you would do that when there are so many other options even if your credit is bad — even a secured card with all its fees would be a better alternative.”
The company, however, stands by its claim that it serves the needs of a growing number of consumers with less than perfect credit. And, in fact, it has nearly 300,000 customers for this card, most of whom carry a balance.
3. Baby Phat Prepaid Visa RushCard
Many prepaid debit cards are loaded with fees. And the BabyPhat Rush Card is the worst out of a bad lot.
It’s even more expensive than all of the RushCards, costing $14.95 just to own, while the three other Rush cards top out at $9.95
“The BabyPhat card allows its holder to make a statement,” said a RushCard spokesman. “Its distinctive pink facade is adored by those who want panache with their purchasing power.”
That panache costs: If you choose a monthly plan, you’re going to pay $9.95 per month plus a $1 per transaction if you use the card as debit instead of credit. Plus, there are hefty ATM fees and other charges.
If you instead choose the “pay as you go” plan, you avoid the monthly fee and instead pay $1 every time you swipe your card — up to $10 per month. If you don’t use your card for 90 consecutive days, you get hit with $1.95 fee. And the ATM fees are even worse.
“This is what I call the “plastic tax” because you’re so desperate to use plastic you’ll accept almost any terms,” said John Ulzheimer, personal finance expert at SmartCredit.com.
4. Hooters MasterCard
If you’re a regular Hooters customer, this card gives you five points for every dollar you spend at the restaurant. But that doesn’t make up for the fact that the APR on the card can hit 25.45%.
The card, issued by Merrick Bank, also comes with an annual fee of up to $48 for the first year, plus $4 per month after that. Late payment fees, returned payment fees and over-the-limit fees go up to $35.
That makes this card among the worst in terms of restaurant-branded credit cards, according to John Ulzheimer, personal finance expert at SmartCredit.com.
“Even if you have excellent credit, it looks like you’ll get a rate of more than 16%,” he said. “You can definitely find a better card than that with excellent credit — and if you’re credit isn’t so good, you’re certainly going to get hit with that 25.4%.”
Claudia Buck: sacbee.com
Valentine’s Day: That heartfelt time of rings, romancing and oh-so-many wedding proposals. And a day when three little words just might be whispered in your ear.
No, not those three little words. The I-love-yous aside, we’re talking these: a prenuptial agreement. As the busy summer wedding season approaches, it’s a good time to consider a document with a decidedly ominous reputation. To read the complete article, please click here
People who “shop ’till they drop” and run their credit cards up to the limit often have a shopping addiction. They believe that if they shop they will feel better. Compulsive shopping and spending generally makes a person feel worse. It is similar to other addictive behaviors and has some of the same characteristics as problem drinking (alcoholism), gambling and overeating addictions.
Keeping up with the Jones’ – Psychology plays a big role in our spending habits. Sometime we want to feel as successful or more successful than those around us. We can spend a lot of money to keep up that image. The reality is, the neighbors probably can’t afford that new car either.
Not paying attention to your bills is a big mistake these days, when banks are doing all they can to boost their profits. Getting your credit card payment in late can mean a $25 whack on the wrist. Being sloppy with your bank account and bouncing a check can cost you around $30.
Pay yourself first automatically. It’s easy to do electronically. Simply have a certain amount from your paycheck deposited into a financial account. You’ll complete a form authorizing your bank (or whatever institution) to receive a portion of every paycheck and deposit it into your savings account. This is a great way to build up your savings—if you don’t see the money, you won’t miss it.
All you Eeyore types out there beware: A depressed mood can make you spend more. According to research published in Psychological Science, people who feel sad are willing to spend more for the same product than people who feel neutral.
Researchers directed some study participants to watch a sad video clip, while others were directed to watch a neutral clip. Following the viewing, participants were given the chance to buy a water bottle. Those who watched the sad video offered almost 300 percent more for the water bottle than did the participants who watched the neutral clip.
If you can’t account for every dollar you spend, take solace in knowing you’re not the only one. Nearly half of all Americans say they lose track of about $2,340 per year, according to a study by Visa, Inc. The money simply “disappears,” and they’re not really sure where it’s gone, the study’s authors say.
Nearly half of Americans report spending about $120 in cash per week—and losing track of $45 of it. Men under 35 are the biggest “mystery spenders,” reporting that they lose track of $3,078 per year, or an average of $59 per week—mostly during a night out. Women fared a little better, reporting losing track of $2,709 per year, or $52 a week—mostly while out shopping.
It’s not surprising that consumers would lose track of some cash spending, but the Visa spokespeople were taken aback at how much. They said the lesson to remember is that a dollar here, a dollar there adds up. Seven percent of the survey participants reported losing track of up to $100 per week. Of those who reported their “mystery spending” was out of control, 59 percent said using their debit cards rather than cash helps them keep track of their money.
The nationwide survey of 2,036
• 58% while on a night on the town
• 55% while grocery shopping
• 50% while out with the kids
• 40% while shopping during a sale
• 33% while shopping with friends
Warehouse clubs. We’ve all been there—and most of us have carted out a giant container of something that, when we get home, we wonder what we were thinking at the time. How are we ever going to eat 10 pounds of dill pickles, and why did it seem like a good idea at the time we purchased them?
According to researchers Michael Norton and Leonard Lee in the Harvard Business School Working Knowledge for Business Leaders (http://hbswk.hbs.edu), one in every 11 people in the
Using both field data and studies in which they created their own “membership clubs,” the researchers found:
• Consumers behave irrationally when there are membership fees.
• When stores charge fees, consumers infer a “fees/savings” link because they believe the stores charge the fees in order to offer members better prices.
• The mere presence of fees leads to increased spending.
• Consumers were more likely to express a desire to shop at stores that charged fees than those that did not—even when products and savings were similar.
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