Silly Bill. He thought Bank of America would let him spend $5,800 on a home theater system just because he had over $10,000 in the bank. He tried to charge the system to his Bank of America Visa Platinum Check Card but was declined. Confused, Bill called Bank of America customer support for an explanation and had the sort of conversation that makes you want to drive a fork through your ear.
spending
Consumer Confidence Plunges To Recession Levels
By 2.15.08
Reuters says that consumer confidence has plunged to levels associated with the recessions of the ’70s, ’80s, and ’90s.
The Reuters/University of Michigan Surveys of Consumers index of consumer sentiment dropped to 69.6, the lowest reading since February 1992, and below analysts’ median forecast for a preliminary reading of 76.3.
Expensive Flowers Are Better Than No Flowers On Valentine's Day
By 1.26.08
According to enterprising scientists, people buy last minute Valentine’s Day gifts to avoid a fight, rather than to express love—as any lazy lover can attest. The marketing researchers devised three experiments to prove that our susceptibility to negative advertising is directly impacted by how long we wait to whip out the wallet.
Bankruptcies Up 40% In 2007
By 1.4.08
Although December marked a slight decrease in Chapter 13 filings from November, 2007 overall logged a whopping 40% rise in the number of bankruptcy filings compared to 2006, reports the Wall Street Journal—over 800,000 filings in 2007, versus around 570,000 the previous year.
Nobody Knows The True Cost Of Credit
By 12.31.07
Credit card companies make it impossible for consumers or markets to know the true cost of credit, according to Georgetown Law professor Adam Levitin. The professor makes his point with a pop quiz:
… what’s the interest rate on the credit cards you’re carrying? How about the default rate? Do you know what constitutes an event of default? What will trigger a penalty fee or surcharge? How much are those fees? If you’re like most Americans, you probably cannot answer many or all of these questions.
Personal Finance Columnist Loses $10,000
By 12.16.07
Personal finance columnist M. P. Dunleavey lost $10,000. Her year-end financial review showed an inexplicable, gaping hole in her bank account. Where did the money go? Large hidden bank fees? Identity theft? Drugs?
I ran through the numbers again with my husband, and he reached the same conclusion: approximately $10,000 was missing in action. That was the vacation we didn’t take, part of the new roof we might need, some terrific wine we didn’t drink. Now we really wanted to know where that money went.
1 in 3 Lottery Winners Broke Within 5 Years
By 10.29.07
The sad news is that 1 in 3 lottery winners are in serious financial trouble or even bankrupt within 5 years. Why? The suddenly wealthy often never learn to manage their money.
Live Without Credit Cards
By 10.27.07
The best way to escape from our mindless purchase economy is to ignore your credit cards in favor of pure, reliable cash. Credit cards undoubtedly have value – purchase protection, rewards, convenience – but only for consumers who use credit responsibly. No Credit Needed wrote a useful guide for anyone willing to live the credit-free life.
Put Impulse Spending To Work As A Savings Builder
By 10.24.07
If you’re the type of person who thinks “discretionary spending” means “I can buy what I want, when I want,” read this person’s idea for how to create an Impulse Buy Savings Plan. It gives you a methodology where you can effectively trap your impulse purchases in a cooling-off period, while also seeing how that money would look if it were saved instead.
10 Ways To Break A Compulsive Spending Habit
By 10.3.07
“Addictive spending is often rooted in punishing feelings of low self-esteem and problems with impulse control,” says an addiction specialist in an MSNBC special report on compulsive spending. At its worst, it can wreak as much or more damage on your finances as any full-blown gambling, drinking, or drug addiction—and yet, a lot of people still consider it a moral failing that sheer will-power can prevent (just take a look at half the comment threads on this blog for evidence of that mindset). If you’re a compulsive spender, odds are you already know if you have a problem, even if you manage to hide it from everyone else. But here are ten ways to help get a grip on the situation.
Money Lessons For Your Kids
By 10.2.07
If you have kids and aren’t teaching them about money, you’re setting them up to be one of those clueless college kids with a free burrito and $12,000 in credit card debt. Don’t do it!
Use Quicken To Fully Grasp The Scope Of Your Comic Book Addiction
By 9.28.07
J.D. over at Get Rich Slowly really likes comic books.
Retail Panic: Will This Be The Worst Holiday Season Ever?
By 9.26.07
Analysts aren’t pleased with Lowe’s and Target’s latest news.
How Big Is That Discount? The Last Digit Determines Consumers' Perception Of The Deal
By 9.10.07
According to a study published in the Journal of Consumer Research the last digit of a product’s price determines your perception of how much the item has been discounted.
Consumer Confidence, Home Prices Take A Nosedive
By 8.28.07
It was only a few short weeks ago that the media was reporting a new 6 year high in consumer confidence. We wanted to buy tacos. And jetskis. And footballs.
Ideas For Living Without Credit Or Debt
By 8.15.07
Leo at Zen Habits has listed 10 ideas for living without a credit card or any debt.
