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Archive | 2011

Credit Cards: Part 2 of 2 – Things to think about before getting a new credit card – Preventing trouble

This is part two of a two part series. Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are some additional things to keep in mind when trying to compare credit cards:

– BIG ONE! – Trick cards – A creditor who acquired a prior credit card lender may offer you a new card – and then trick you by putting the old credit card lender’s debt on the new card, perhaps at rates less advantageous than you were previously paying.

– Look carefully at the interest rate, but recognize that the interest rate can EASILY change. Note that after the teaser rate expires, there will likely be a new rate. Find out what that new rate will be.

– Penalty rates – Credit card contracts, including those that advertise low rates, provide in the small print that our interest rate increases if you make a late payment or go over your credit limit. There are two distinctions here. If you are 60 or fewer days rate, the new penalty rate can only apply to future cash advances and purchases. If you are more than 60 days late, the new higher penalty rate can apply to existing balances of purchases/cash advances AND ALSO it can apply to any new purchases.

-Fees – Find out how much you will be charged for all sorts of fees. Here are a few ideas. Late fees, over-the-limit fes, annual fees, membership fes, cash advance fees, balance transfer fees, even fees for buying lottery tickets.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.

Credit Cards: Part 1 of 2 – Things to think about before getting a new credit card – Preventing trouble

Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are things to keep in mind when trying to compare credit cards:

-Avoid accepting too many credit card offers – There is rarely any good reason to own and carry more than two credit cards.

-Avoid "store cards" like Good Guys Video, Bon/Macy’s, Nordstrom, Sears and JCPenny cards – why do you need these? Is there anything at Sears or Nordstroms that is essential to your present daily life?

-BIG ONE! – Avoid subprime credit cards – Avoid credit cards which advertise themselves as helping with "bad credit". Some of these credit cards are "fee harvesters" with low credit limits and so many fees that you couldn’t even charge any purchases to the card because the card was already maxed out when the account was opened.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.

Inflated: How Money and Debt Built the American Dream – The Economist reviews C. Whalen’s book on American Finance

The Economist reviewed Mr. Whalen’s book, "Inflated: How Money and Debt Built the American Dream", in the December 18, 2010 edition.

Here are some sobering thoughts, taken from the Economist review:

America’s financial history is a losing battle against the "twin demons" of debt and inflation.

The gold rush created an alternative to the Puritan notion of hard worka nd saving that had generally characterized the nation’s early days.

The legal-tender act under Abraham Lincoln paved the way for deficit spending by the government.

in the 1920s acceptable mores of financial policy grew looser with an explosion of consumer finance tied to the age of the automobile and speculative debt-fueled investment.

Credit boom and bust cycles have followed one after another.

The instability (and political power) of banks and the fiscal recklessness of individual states is a given.

The state and federal governments refuse to raise enough tax to cover public demand for services and entitlements.

Allowing the public debt to grow faster than the economy dates back to the time of Alexander Hamilton.

Bankruptcy became a "robber baron" means to advance a private agenda in the late 19th century, just as it was used to further political agendas with the recent General Motors and Chrysler bankruptcies.

The huge monetary expansion since 2008 mirors the money printing recklessness of the 1930s.

The Federal Reserve serves the White House and big banks before it serves the needs of individuals under the guise of "stabilizing" financial markets.

By the late 1970s housing had begun to replace defence as America’s engine of growth. Before long, the myth that you could never have enough of the stuff had taken hold.

The author ponders and wonders how the economy will cope without a buoyant and growing property/housing market.

According to Mr. WHalen, the US needs a dollar devaluation to bring down external deficits and stimulate exports.

The US dollar serving as the worlds only significant reserve currency gives America a "free ride" to be less responsible on fiscal discipline.

This would be, he says, a 21st Century Marshall Plan in reverse.

Wow, I think I am going to pick up this book!

Aprendalo! (Learn it!) How the Hispanicisation of America provides a road to your financial security.

In December 2005, I booked a United Airlines ticket to Antigua, Guatemala. I had enrolled in an intense course of Spanish instruction. The course was one-on-one. One teacher, one student (me) for six hours per day, six days per week.

I resided with a wonderful Guatemalan family in their large home, studying for about eleven days. I returned in June 2006 for three weeks of study and studied similarly in August 2006, February 2007 and March 2008. March 2006-May 2009 I studied almost weekly for two hours with a wonderful Guatemalan lady, meeting every Monday evening, at Borders Books in Lakewood, WA.

Why?

America is turning hispanic. One forecast I read indicated that by 2047, Spanish would be the dominant language in California.

An interesting September 11, 2010 article in The Economist magazine was further informative:

Over 40% of New Mexico’s population is of hispanic origin.

30% to 40% of Texans, Arizonians and California are of hispanic origin.

20% to 30% of Nevada’s, Florida’s and Colorado’s population is of hispanic origin.

Washington, Oregon, Idaho, Utah, Illinois, New Jersey, New York and Connecticut have populations estimated at 10% to 20% latino in origin.

These foreign room, board and lessons packages in Guatemala and Nicaragua are inexpensive and easy to access. You just call or email the school and ask them to pick you up at the airport. It is usually truly that simple. The total room, board and lessons package runs about $175-220 per week depending on whether u have a teacher for 20 or 30 hours per week.

I recommend Roger Ramirez’s One-on-One Tutoring in Granada, Nicaragua or Ixchel Spanish School in Antigua, Guatemala. Google them for contact information.

70/70 Radio – Hispanic demographic changes alter media formats – La Kalle from S.F. California

My wife’s uncle is a fine fellow – he is an Iranian immigrant who lost nearly everything when the Shah of Iran’s regime fell in the late 1970s with the Islamic Revolution.

Nevertheless, he has hacked out a place here in America with the hard work of his wife, a registered nurse.

They are profoundly interesting people for whom I have the deepest respect.

This Iranian immigrant has purchased 11 acres of Chardonnay grapes in one of the best locales of Napa Valley, California, and he farms the vines with his heart, sweat and soul, aided by his sons and wife. He does side jobs as an architect to make extra money.

But this blog post is not about Iranian immigrants….it is about the immigration and melding of latino and caucasian culture here in the United States.

Every year my wife and I (and now our three children) go down to visit her uncle at his vineyard. We usually fly into Oakland, California and rent a car for a drive north of some hour and thirty minutes.

As a radio "dial flipper", on this ride I bumped into something odd about three years ago. I began listening to SF Bay station with a heavy DJ presence, and what was odd is that the DJs would deliver the spoken content in about 70% Spanish and 70% English, so the DJs were frequently repeating much (but not all) of their content.

"Muy buenos dias caballeros y ladies, hace mucho calor hoy mismo, today it is going to be hot, por eso no olviden tomar algo muy refresco y remember to turn up the air conditioner while you enjoy that cold drink."

I found it disorienting to try to imitate this manner of speaking…and I wondered how it came to exist?

I was listening to La Kalle, a station that mixed Spanish and English language and also Spanish and English pop music.

Over the past three years, I have noticed that the station La Kalle seems to be shifting a bit more towards devoting a significant share of the play time (but still less than 50%) to English language pop/rock music, with an emphasis on current top 40 hits. In prior years, the English language music seemed to be just an occassional garnish, so obviously, La Kalle is trying to figure out its market and fine tune something new.

Here are some reviews for San Francisco Bay Area station La Kalle (a funny word play on "La Calle" which means "The Street" – see how they used the letter "K"? The letter "k" is common in English, but is extremely rare in Spanish, so it uses a mix of English and Spanish spelling for a Spanish word, using "K" as the first letter in the radio station’s call moniker. ) Below is a link to some reviews of this station posted by English speakers:

http://www.yelp.com/biz/la-kalle-radio-100-7-and-105-7-fm-san-francisco

In June 2009, I obtained satellite radio for the first time – and I noticed that even in top 40 current music (Sirius channels 20-24) there is quite a bit of Spanish language creeping into pop music, and I am hearing reggeaton sounding beats from time to time.

Why am I talking about a San Francisco Bay area radio station on a bankruptcy lawyer’s blog?

It is because I am telling you of a change that is coming. You can get ahead of that change and secure your employment future with a burst of concentrated and focused energy. You need to learn Spanish. You can do it in 18 months if you work hard.

On my last two visits to Maui, Hawai’i, (June 2010 and December 2010) again and again, I bumped into many people speaking Spanish. It was odd for me to be in Hawai’i, speaking Spanish.

There is a Central American diaspora going on as we speak. It ebbs and flows according to comparative economic conditions, but it never goes away. There is net migratory inflow to the US from our Southern neighbors…and there has been for years. Many of these new immigrants are concentrating in communities where they no no longer need to learn English well in order to survive.

Businesses, the government and employers will need to serve these people who end up not learning English very well as they concentrate in communities that are Spanish speaking.

If you are worried about the future, learn Spanish, and you will worry about it much less about the future than you used to. I doubt that a Spanish speaking Anglo will ever be unemployed for long as this centry progresses.

If I am overstating my case for Spanish education, then I will stand corrected, as time will tell. Note that if worse comes to worse, you can apply for a DJ job at La Kalle, or some other online and broadcast radio station that are sure to follow this format.

Other posts in my blog give ideas about how to study Spanish – use our Google sitesearch function (the little Google box up in the right-hand corner) to search for the posts.