What Is A Secured Credit Card?

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Just like bank loans, where there is secured and unsecured borrowing by businesses, credit cards as a form of consumer debt can also be either secured or unsecured.

Credit cards, as most of us know and use, are unsecured.

The money is lent to card users without any collateral against it and it is up to consumers to pay back the account balance later and if not, the card issuer loses (well, they will go after you but there is no guarantee they get their money back).

When the possibility of not paying back by a credit card holder becomes a serious concern, either because of the applicant’s bad credit in the past or no established credit at all, a card issuer would require certain amount of funds to be deposited as collateral before a credit line can be issued.
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How to Start an Emergency Fund

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One of the best things you can do for your personal economy is to start an emergency fund.

Your emergency fund can help protect you against financial setbacks, since it provides you with a little extra cushion to draw on.  Rather than turning to debt, you can use money in your emergency fund to cover unexpected costs.

Experts recommend that you save at least six months’ worth of expenses in an emergency fund.  So, if you spend $3,000 a month, you need to have $18,000 in an emergency fund.

That’s a daunting task.

How can you get started when you have that huge amount of money hanging over your head?

Here’s How to Start an Emergency Fund

Break It Down

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Second Marriage? Have a Financial Date Before You Tie the Knot

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With a divorce rate that is commonly quoted as being 50%, second marriages are common. 

However, according to the Wall Street Journal, many experts cite the divorce rate of second marriages to be 40%.

Second marriages come with more baggage — ex-spouses, stepchildren who may or may not like the new step parent, and, of course, financial complications including spousal support and first family obligations, just to name a few.

It’s no secret that money disagreements can be one of the top causes of divorce.

According to a study conducted by Jeff Dew of Utah State University, “Couples who reported disagreeing about finance once a week were over 30 percent more likely to get divorced than couples who reported disagreeing about finances a few times a month” (The New York Times).

So how do those in second marriages, who perhaps bring more money issues and baggage into their marriage with them than they did their first marriage, avoid financial conflict?

One strategy is to have a financial meeting before they marry (and some may argue before they even get engaged).

Make sure to consider these financial topics before that next marriage:

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Starwood Preferred Guest(R) Credit Card from American Express Review

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Are you looking for an incredible travel rewards credit card that allows you to earn free nights at high-end hotels and resorts AND can be used towards airline miles programs?

How about a card that, besides rewards, comes with additional travel benefits, purchase protections, and more?

Then look no further than the Starwood Preferred Guest® Credit Card from American Express.

Here are some of the benefits of the Starwood Preferred Guest card at a glance:

  • Starpoints® bonus: earn up to 25,000 bonus points: 10,000 after your first purchase and another 15,000 after you spend $5,000 within the first 6 months of Cardmembership
  • That’s enough for a weekend getaway to a Category 4 Hotel like the Westin Savannah Harbor Golf Resort & Spa, or six free nights at a Category 2 Hotel
  • Free Hotel Nights: redeem Starpoints at over 1,100 hotels in nearly 100 countries worldwide – with no blackout dates
  • Free Flights: redeem Starpoints on over 350 airlines with SPG Flights – with no blackout dates
  • Get 5,000 bonus Starpoints after you transfer 20,000 Starpoints to a frequent flyer program with more than 30 airlines
  • No limits on the number of Starpoints you can earn
  • $0 introductory annual fee for the first year, then $65
  • Terms and restrictions apply.

Starpoint® Rewards Program

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Credit Score – What Does It Mean?

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Credit Score Ranges

What Is A Credit Score?

You’ve heard that a credit score is important, haven’t you?  You may have even heard how you should protect your credit score.  But a lot of people are still unsure of what a credit score actually is.

Let’s take a look at credit scores and what they mean.  This way you know once and for all what they are and how they are used.

A credit score is a calculation based on information from a credit report which gives a representation of how credit-worthy a person is or how likely a person is to default on their loan.

Let’s take a quick step back, shall we?  We’re talking about credit scores but it’s important to understand what a credit report is all well.  Your credit report is basically a listing of all the credit accounts you have and your history paying your credit, or debt, off.  Sometimes the report is referred to as your credit history.  The information comes from the lenders who report your activity to the three major credit bureaus.

To quickly sum up — your credit report gives information and a history of your credit accounts.  Now back to credit scores…

Your credit score gives a number range to quickly sum up the information from your credit report.

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Is it Better to Rent Or Buy Stuff? – Renting Items To Save Money

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My friend’s parents were recently locked in a marital battle.

They wanted to travel from Michigan to Florida for a wedding, and she wanted to fly for free using frequent flier miles they had accrued.  The transportation cost for the trip would be limited to the car they would rent for three days when in Florida.

He, on the other hand, thought it was silly to rent a car when theirs worked perfectly fine.  He wanted to make the 24 hour drive down to Florida for their three day trip.  He was sure this was the cheaper way to travel, even though they would have to pay for gas and put wear and tear on the car.

Ah, the rental battle.

Is it worthwhile to pay for a rental?  The answer, in all honesty, is often that it depends.  However, in this case, simple math would have shown him that her plan would have been the cost saver.

Marital battle aside, we Americans don’t often think of renting outside of cars and apartments.  Instead, our first thought tends to go to ownership.

There are just a few things we automatically think of renting–of course, cars when we are traveling, tuxedos when our children are going to prom or when men get married, apartments, sure.  But for most other temporary needs, we tend to buy instead of rent.

However, if we could let go of this mindset, we may save a substantial amount of money.

How to Determine If It Is Better to Rent or Buy

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Happy Mother’s Day 2013 and Links

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Today we tip our hats to Moms everywhere.

As Jim Gaffigan says in one of his hilarious standup routines: “Women are amazing. A woman can grow a baby inside their body. Then somehow a woman can deliver the baby through their body. And then by some miracle a woman can feed a baby with their body.”

Your mother did that for you.  And then she kissed your boo boos, got you to school on time, and supported you in every wacky endeavor you took on.

Even better if Mom showed you how to budget for a family, get the best value at the grocery store, and the value of time spent with family.

So thanks, Mom, and all Moms who are involved with their children’s lives.

Here are some great reads this week:

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How to Spend Less on Some of Your ‘Needs’

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How many times have your children said, “I need this?”

Or how many times has your spouse said it?  What about you?  How many times have you said it?

At the risk of dragging out the old, “I had to walk to school uphill both ways in the snow,” argument, what Americans consider a need today is much different from the past.

In addition, Americans have created a culture in which the concept of “need” is much different from anywhere else in the world.

Enough about historical comparisons and international economics.  Let’s look at a few examples of what Americans today consider needs and just how ridiculous (and expensive) they are.  While we’re at it, let’s consider some common sense alternatives.

How You Can Spend Less on These ‘Needs’

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BankAmericard Travel Rewards® Credit Card – Review

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Isn’t it great when your credit card gives back to you?  And if you travel it’s nice when your card works with you to make travel easier and rewarding.

That’s the BankAmericard Travel Rewards® credit card!

This credit card from Bank of America offers up some interesting travel rewards features.  Take a look at a quick rundown of the card:

  • Earn 10,000 bonus points when you spend $500 on purchases in the first 90 days of account opening, which can be $100 towards travel purchases
  • Earn flexible travel points good for everything from flights to baggage fees
  • Earn 1.5 points for every dollar spent on purchases – 50% more than the average rewards programs which only offer 1 point per dollar
  • No limit to the total number of points you can earn and points don’t expire
  • No annual fee
  • Simply pay for your travel with your card. Then, call or go online and you can redeem your points for a statement credit towards all or part of your travel purchases
  • No foreign transaction fees
  • Chip Technology provides you expanded global acceptance when shopping anywhere you go, outside of the U.S.

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Multi-Generational Living – Is a Next Generation Home for You?

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The economy has hit many hard. 

Retirees have seen their investments drop leaving them with less money to pay their living expenses and ever rising medical and prescription costs.

College students struggle to pay their college and living expenses while not going too deeply in student loan debt.

Meanwhile, the so called sandwich generation, those who have elderly parents who need support as well as children that also need support, struggle to make ends meet and take care of both generations while also saving for their own retirement.

Multi-Generational Living:  Coming Back in Style

The idea of generations living together is not new.  One hundred to one hundred and fifty years ago, 3 generations living together was quite common.

Yet, as our society changed and people became more independent, multi-generational living fell out of vogue.  It is no longer necessary, so most people don’t do it.

However, the current economy has changed the most recent housing dynamic. 
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