Credit, Noted

The Best Explanation I Have Heard For How The Credit Crisis Happened

I love talk radio.  I love podcasts.  One of my favorite radio programs – which is also available as a podcast – is This American Life.  This past Sunday’s episode, entitled The Watchmen, provides the clearest explanation of the current credit crisis, what it is, and how regulators failed to regulate it, that I have heard.  I strongly recommend that you visit the This American Life site and stream or download the program.  You can listen to it on your computer, or download it and put it on your mp3 player.  Many of the interviews for the program were conducted by Chana Joffe-Walt and Dave Kestenbaum from NPR’s Planet Money.  Regardless of your political affiliation, I think you will find…

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Credit

Beware The Dangers Of The Abuse Of Credit

As the recent economic crisis has shown us, there are dangers, obvious and hidden, associated with the abuse of credit.  Our economy, which is in large part based on the availability of credit, teeters on the brink of disaster.  At present, fifty cents of every dollar spent in the United States is charged on a credit card.  As a nation, our national debt has risen above $11 trillion.  Thousands of people are facing foreclosure and tens of thousands more are falling behind on credit card and automobile loan payments.  Now, maybe more than ever before, is the time to think about the dangers of credit. Credit Creates An Illusion Of Wealth Let’s imagine an average working couple.  Together, after taxes,…

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Credit

How To Break The Credit Card Habit

When getting out of debt, one of the first things we had to do was break the credit card habit. For years, we used credit cards for convenience – and then we woke up one day and realized we were in debt and paying interest.  Here’s how we changed our behaviors and made the break – We Balanced Our Checkbook – This set us up for success.  This is a simple, but necessary step.  We needed to know exactly how much money we had, to the penny, for spending and debt reduction.  It only takes a few minutes to go online, review recent transactions and balance the checkbook. We Lived On A Budget – Instead of spending without a plan,…

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