Six Figures and Broke » Personal Finance

In Debt We Trust DVD Review

BigSpender — Tue, 03 Jun 2008 21:33:04 +0000

I have recently had the privilege of watching the documentary In Debt We Trust by filmmaker Danny Schechter. The film is different than Maxed Out in that it takes an in-depth look at the credit-lending scene. It touches briefly on collectors but discusses credit cards, predatory lending, cash advance/payday lenders and more. The filmmaker also queries users to ask the question if the next bubble to burst is going to be the credit industry, much like the mortgage industry is going through woes (as a result of the subprime/predatory mortgage lending market). He didn’t present this concept in a doom and gloom the sky-is-falling way but instead as a question that consumers must ask themselves.

Two parts of the film really stood out to me. The first was of a Baptist church in Virginia that helps members pay off non-car and non-auto debt. Parishioners donate what they can to a chosen member and then their credit cards are paid off. That member then cuts up the credit cards and the whole parish celebrates. As Dave Ramsey says often, debt is merely a symptom. I don’t know the whole program that the church uses but I would hope that they address the core root of the problem which can be different in each individual. Cutting up the credit cards is definitely a good step and having support from friends and family will likely help that one parishioner stay out of debt.

As the movie came to a close, a brief description of 2005 NYC helicopter crash in which six executives from MBNA (who was the primary backer for the 2005 bankruptcy reform laws) were rescued. One bankruptcy attorney mentioned that several people thought that perhaps this was divine intervention. I’d lean more towards karma perhaps but it does make a person go hmmm? Of course no one would ever wish this on the executives but considering what they were working on at the time, it is quite a coincidence.

The film runs a total of 98 minutes and was definitely eye-opening. I can definitely tell you that it helps keep me focused on getting out of consumer debt!

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Visiting a Few Personal Finance Blogs

BigSpender — Thu, 17 Apr 2008 17:20:42 +0000

In reading through some of my favorite personal finance blogs, I decided to do my own blog entry highlighting some of their articles today.

No Credit Needed 5 Rules of Spring Training (for your finances) - Fun entry and correlates personal finance to baseball’s spring training. The five rules are: Pitchers and Catchers Report First, Start Slowly, Go Somewhere Warm, Practice the Fundamentals and Have Fun. A must-read.

Five Cent Nickel’s Ten Things to do With Your Tax Refund - Yes, it is tax time again and many Americans will be receiving a tax refund. A few of Five Cent Nickel’s ideas include invest in yourself, prepay your mortgage and invest in your children. For the rest of the ideas as well as the justification, head on over to fivecentnickel.com

Six Figures and Broke’s 2008 Economic Stimulus Payment Information- Yes, yes I know this is my own site, but it is good information. If you’re coming to this post from Google, Technorati or another site, you may not see the Featured Post on my main page. Anticipate your Economic Stimulus Payment with the latest information from the IRS.

If you have a favorite personal finance blog, I’d love to hear what it is. I’m always looking for more sites to help keep me motivated as I walk this get out of debt road.

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The Top Five Personal Finance Sites

BigSpender — Wed, 16 Apr 2008 16:59:34 +0000

As consumers across the United States are being affected by the housing crisis and the credit crunch, personal finance websites are noticing an upswing in traffic. Consumers are using Google as their financial counselor and looking for information on how to secure their personal financial future. Read on to learn more about the top five personal finance sites.

Kiplinger.com
Kiplinger is known world-wide for providing fantastic personal finance news. The main graphic on its website touts “Timely, Trust Personal Finance Advice & Business Forecasts” and Kiplinger.com lives up to this claim. The website is fantastic for both those new to personal finance and experienced professionals.

“The Basics” section of the website provides information on investing, money management, credit and debt, taxes and more. In addition, the site provides several in depth guides on topics ranging from Going Green to Paying for College. Check out Kiplinger.com today.

Dave Ramsey Online
Personal finance and real estate expert Dave Ramsey is known for his in your face, tell it like it is style. With a nationally-syndicated radio show, a television show on the Fox Business Network and the most popular iTunes business podcast, Ramsey listeners reach upwards of 3 million per day. While Dave Ramsey may not have the best in personal finance bedside manner, the majority of his information is great and perfect for those looking to get out, and stay out, of debt.

On the Dave Ramsey website, he offers several free services including referrals to Endorsed Local Providers so that consumers can meet with a professional in their area. In addition to the free services, Ramsey also has the subscription-based My Total Money Makeover Online and Financial Peace University Online.

The Motley Fool
The Motley Fool’s motto is “To Educate, Amuse & Enrich” and the site absolutely lives up to this claim. Not only does the Motley Fool provide the latest in personal finance news, they also provide a humorous spin to their articles which instantly engages the reader. The personal finance section of the Motley Fool provides information on saving & spending, credit & debt, home & real estate and death & taxes. That pretty much covers every aspect of personal finance.

CNNMoney.com
The internet site of Money magazine, CNNMoney.com provides consumers with information on a variety of personal finance topics. One of the most popular parts of the CNNMoney.com site is the “Ask the Expert” section. Recent topics include cashing out or holding firm with an IRA, understanding all of the terminology and acronyms used by financial advisors and asset allocation information.

MSN Money
Microsoft has its hand in everything; personal finance sites included. The MSN Money website is fantastic and easy to navigate and provides a wealth of information for consumers. The message boards at the site are hosted by noted author Liz Pulliam Weston. Whether you are looking for information on family and college planning or preparation for a comfortable retirement, MSN Money can meet those needs.

The five websites listed here are just a sampling of some of the fantastic personal finance sites on the internet. If you have a favorite site that isn’t listed, please post a comment below with a link so that others can check it out!

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Georgia High Schools Add More Personal Finance Lessons

BigSpender — Wed, 27 Feb 2008 23:31:36 +0000

Personal finance lessons…high school. Wow, you don’t often see those two phrases together in the same sentence. Times are certainly changing; in a recent article published WSB-TV Atlanta website, Georgia’s high school economics instruction has been rewritten to include personal finance lessons. From the Action News 2 article:

“As a society, we need to do everything we can to increase financial literacy. The need to understand the range of products, mortgage and credit cards is so pressing.”

Kudos to the superintendent of schools in Georgia, Kathy Cox, for making this important change to the high school curriculum. When students go to college they are often bombarded with credit card offers. From banks next door to dormitories to credit card company tables on campus, credit card offers are abundant. I remember my first credit card, a Bank One Visa student card with a limit of $500 of which I promptly took out a $400 cash advance so three of my friends and myself could fly to California for a football game. Due to extenuating circumstances I didn’t get to go on the trip and amazingly none of my friends paid me back.

I wasn’t a stupid person. I was 18 and attending college on a full-ride academic scholarship. What I didn’t have was street-smarts, those came later and after many, many mistakes. I think that offering personal finance lessons in high school, combined with parental instruction, will set these students up for a more successful life. Now I don’t think credit cards are the devil, I think they have a purpose and must be used wisely. However, very few 18 year-olds are prepared for the cause and effect that credit cards come with.

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