Compulsive spending: Interview with an expert


Written on December 31, 2011 – 9:44 pm | by David Jones

Dr. Michael Steger, assistant professor of
psychology at Colorado State University.     In an effort to expand on our previous post on compulsive spending we’ve interviewed Dr. Michael Steger, a professor of psychology specializing in applied social psychology and counseling. 
Here’s what he had to say:
Do people spend more or less money when they’re unhappy/depressed? Why? Most people actually are more willing to spend money when they are happy or in a good mood. One reason for this is that we tend to project ho were feeling right now into the future. When were happy, were optimistic and we subconsciously assume that things will continue to make us happy in the future. However, most people are prone to making purchases they think will cheer them up when they are feeling down. For some people, this tendency can become a trap.
Can making purchases truly make someone happy?  It depends on what people spend their money on. If p Read more…

Millions use payday loans to cover mortgage and rental costs


Written on December 30, 2011 – 8:46 am | by Antony Clark

Almost a million people have turned to a high cost payday loan to cover their mortgage or rent in the past year, the homelessness charity Shelter has claimed.

A further 6 million have used other types of credit, including unauthorised overdrafts, other loans or credit cards, to help pay their housing costs, it said.

Shelter said the research, based on a survey of more than 4,000 people, revealed a “spiral of debt that people are falling into in order to keep a roof over their head”, and urged struggling borrowers to take advice urgently.

Payday loans are small, unsecured loans marketed as a way for people to tide themselves over until their next pay packet. The loans attract high interest rates and campaigners argue their high cost means poor borrowers can be sucked into a cycle of debt, taking out additional loans as they struggle to repay their existing borrowing.

Shelter said it had carried out the research after seeing an increase in the number of people telling its debt advisers they had used the loans.

Read more…

Tags: Mortgage, Mortgage Rental

CFPB wants consumer input on credit card agreements


Written on December 16, 2011 – 3:01 pm | by Antony Clark

With millions of Americans still dealing with credit card debt on accounts they may not fully understand, the new federal bureau is asking for the publics help in shaping a new document to help clarify many aspects of a lending agreement.

The federal Consumer Financial Protection Bureau is seeking public comment on its new proposed credit card lending agreement, which is designed to clarify some parts of a deal by listing the terms in simple language and larger print, according to a report from ABC News. Americans can visit the CFPBs website, view the document as proposed and enter their suggestions at the bottom of the page.

The proposed document cuts the number of words in a credit card agreement from the current average of about 5,000 to a little more than 1,000, the report said. However, once finalized, the document will not be mandatory for lenders to use, which may cause its adoption to be slow at first.

Experts believe that the CFPBs efforts will eventually lead to clearer agreements between lenders and consumers for all financial products, though the agency is currently focusing on credit cards and mortgages. Read more…

Tags: Card, Credit Card

Federal Loan Consolidation of Student Loans


Written on December 13, 2011 – 8:17 am | by Carleen Anderson

Though student loans can be a great way to finance your education, you have to pay them back eventually. After college, you may find it difficult to manage your loan payments. In such situations, or if you just want to save money, you may want to consider consolidation of student loans.

Consolidation of student loans means to merge or consolidate several student or parent loans into a single loan from a single lender. The main objective of consolidation of student loans is to reorganize the finances of those students who have taken loans in the course of their study period and find it difficult to repay them. Consolidation of student loans helps you to bundle all your loans together into a single loan and you will have only one lender and one payment to deal with. It also helps you to save money by giving a chance to lock in at a low interest rate.

You can combine your private and federal loans to fund your education. But there is one important point to remember – that you don’t mix different types of loans together. Always consolidate your federal loans first and then consolidate private student loans separately. S

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Tags: Loans, Student Loans

Festive Fun Ideas for Christmas Holidays


Written on December 10, 2011 – 10:26 pm | by Carleen Anderson

Stuck for activities that won’t break the bank this Christmas? I’ve put together some tips to help you find the best free and affordable events to keep you entertained this December.

Christmas is expensive enough with all the gift buying (), but when you factor in activities and entertainment over the festive season; the costs just keep getting higher and higher. However, if you plan ahead and keep an eye out for special events, you could save yourself a lot of time and money! Here are my tips for seeking out the activities to suit your budget.

Your local council website should serve as a resource of useful information – including Christmas events. You will find links to local libraries and art galleries and be able to see what events they’re hosting over the Christmas period. If you’re not sure of the web address for your local council, you can do a search via this link on the direct.gov.uk website.

The thought of visiting a shopping centre in the run up to Christmas might fill you with dread, but if you can find yourself a parking space and battle through all the shoppers you might find that there’s some free fun to be had! For example

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Tags: Christmas, Christmas Holidays