Reconsidering conventional wisdom about personal finances in light of the vast changes which have transformed earning, spending, investing, and credit over the past generation.
We've covered Pentagon Federal Credit Union's tremendous Visa Cards exensively. We regret to note that their longstanding "life of the balance" promotional rate offer on these cards have ended. In effect, one of the last exceptional unsecured loan options available to prime borrowers has been cut back subtantially.
Today the Pew charitable trusts released a short report entitled "Safe Credit Card Standards". Pew surveyed credit card offerings from all of the largest issuers, then consulted with various stakeholders--including representatives from credit card issuers.
Late last year, Chase's credit card division decided to change the terms on accounts where customers had taken advantage of low-rate loans which were to be paid back over "the life of the balance".
Last month we wrote about the great new 5/5 HELOC offering from Penfed. Since then, we've seen unprecedented moves by the treasury to to forestall the credit crisis.
Yesterday we examined why and how credit card companies are seeking money back from the customers they once so eagerly loaned to. As discussed, we're seeing "carrots, cajoling, and sticks" the likes of which we haven't yet seen among prime card companies.
The background: card companies are panicking. It's been widely reported that as the credit crunch has evolved, credit card companies have grown ever more eager to have their customers pay down their balances. While there are several reasons behind their sense of urgency, two stand out. First, card issuers have all but lost their ability to "securitize" their loans.
As regular readers know, we're huge fans of Pentagon Federal Credit Union here at RTM. They not only give members many of the best financial deals available anywhere, but they're regularly innovating, offering new products that just make sense.
Eleanor Laise wrote an excellent piece for today's Wall Street Journal in which she examined how personal finance books have recently changed their tone, racing to capitalize on the prevailing fear.
I thought it was clever financial planning. Banks thought it looked like deadbeat behavior.
Friends ask why I gravitated from academic philosophy to investment management and personal finance. And some wonder why I'm so preoccupied with credit scoring. This true story might shed some light on these questions.
A review of John R. Ulzheimer's You're Nothing But a Number