 Famous Quotes about money
Knowledge of the New Bankruptcy Bill
Bankruptcy Filings in 2001
Record Number of Bankruptcies
Outstanding Balance vs. Personal Income
Interest Rates and Credit Counseling
Number of Americans in Credit Counseling
Credit Counselors Income
Average Credit Counseling Client
Average Card Balance
Interest Rate Hikes After a Late Payment
Losses Due to Credit Card Fraud
Annual Credit Card Survey Findings
Payments and Disposable Income
Debt vs. Income
Late Payments
ATM surcharge distribution
Financial Education in the Home
Banks just hate bounced checks…
Total Public Debt
Fraud in America
Famous Quotes about money
Never spend your money before you have it.
Thomas Jefferson (1743 - 1826)
He had heard people speak contemptuously of money: he wondered if they had ever tried to do without it.
W. Somerset Maugham (1874 - 1965), 'Of Human Bondage', 1915
Money can't buy friends, but it can get you a better class of enemy .
Spike Milligan
Finance is the art of passing money from hand to hand until it finally disappears.
Robert W. Sarnoff
Wealth is the parent of luxury and indolence, and poverty of meanness and viciousness, and both of discontent.
Plato (427 BC - 347 BC), The Republic
No matter how rich you become, how famous or powerful, when you die the size of your funeral will still pretty much depend on the weather.
Michael Pritchard
The safest way to double your money is to fold it over and put it in your pocket.
Kin Hubbard (1868 - 1930)
The easiest way for your children to learn about money is for you not to have any.
Katharine Whitehorn
Do not be fooled into believing that because a man is rich he is necessarily smart. There is ample proof to the contrary.
Julius Rosenwald (1862 - 1932)
Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game.
Donald Trump (1946 - ), "Trump: Art of the Deal"
Knowledge of the New Bankruptcy Bill
Many Americans Have Not Been Made Aware of Key Aspects of the New Bankruptcy Bill
58% were not aware that the House bankruptcy bill would allow wealthy individuals in some states to declare bankruptcy and still own expensive homes.
51% were not aware that both the Senate and the House bankruptcy bills would not restrict credit card issuers from marketing or extending credit to those who cannot afford this credit.
48% were not aware that the bill is strongly supported by banks, finance companies and other creditors and is strongly opposed by consumer groups.
Reporting Pub: Consumer Federation of America
Pub Date: 5/9/01
Article Title: NEW DATA: FEW AMERICANS WANT PRESIDENT TO SIGN BANKRUPTCY BILL
Bankruptcy Filings in 2001
Bankruptcy filings by American consumers and businesses jumped 19 percent in 2001, hitting a record high of 1,492,129 in a year in which the economy slid into recession.
The filings last year compared with 1,253,444 new bankruptcies filed in 2000 and the previous record of 1,442,549 cases filed in 1998, data compiled by the Administrative Office of the U.S. Courts show.
The majority of filings continued to be under Chapter 7 of the U.S. Bankruptcy Code, which allows people to dissolve their credit-card and other debts. Chapter 7 filings were 1,054,975, up 23 percent from 859,220 in 2000.
Reporting Pub: Yahoo News
Pub Date: 2/19/02
Article Title: Bankruptcy filings up 19 percent last year amid recession, data show
Article Author: AP World Business
Record Number of Bankruptcies
The number of new bankruptcies filed during the second quarter of calendar year 2001 (April 1 to June 30) rose 24.5 percent over the same period a year ago. Filings increased from 321,729 to 400,394, making this the highest three-month period ever, according to data released today by the Administrative Office of the U.S. Courts.
Filings are now on track to surpass the recording-breaking year of 1998, when 1,442,549 new cases were filed. In the first six months of this year, 767,235 new cases were filed. That is an increase of 21 percent over the first half of last year, when 634,064 cases were filed, and an increase of 5.4 percent over the first half of 1998, when 727,578 cases were filed. The number of second quarter bankruptcies also eclipses the previous three-month record during the second quarter of 1998, when 373,460 new cases filed.
Reporting Pub: abiworld.org
Pub Date: 8/24/01
Article Title: New Bankruptcy Filings Break Quarterly Record
Outstanding Balance vs. Personal Income
The average cardholder's outstanding balance is $4,400-up 123 percent in only a decade, according to the Nilson Report, while personal income rose 72 percent. Meanwhile, the government recently reported that personal savings have fallen to the lowest monthly level in history.
Reporting Pub: U.S. News and World Report
Pub Date: 3/19/01
Article Title: Digging Your Way Out of Debt
Article Author: Paul J. Lim and Matthew Benjamin
Source: The Nilson Report
Interest Rates and Credit Counseling
According to information CFA has obtained, four of the ten largest credit card issuers have recently increased the interest rate they charge consumers who enter a debt management program, including Citibank, First USA/Bank One, MBNA and Household Credit Services. MBNA recently increased its interest rate by over half from10% to 15.9%. This increase alone would cost a consumer with $10,000 in debt an additional $1,022 over three years.
Credit card issuers in the CFA survey that charged the highest interest rates to credit counseling consumers include Sears (21.9%), American Express Optima (21.7%), Capital One (19.8%) and First Card (17.65%). At these rates, it would be impossible for a consumer to pay off a $25,000 debt at a typical monthly payment of $350.
Only one of the largest ten credit card issuers (Chase Manhattan) has lowered its interest rate for credit counseling clients. Credit card issuers that charge the lowest interest rate--0%--include Bank of America, First North American National Bank (FNANB), Mellon Bank, and US Bancorp.
Reporting Pub: Consumer Federation of America
Pub Date: 7/28/99
Article Title: LARGE BANKS INCREASE CHARGES TO AMERICANS IN CREDIT COUNSELING
Number of Americans in Credit Counseling
According to the largest network of non-profit credit counseling agencies, the National Foundation for Consumer Credit (NFCC), the number of Americans seeking credit counseling and entering debt management programs has risen sharply over the last ten years. NFCC's member agencies, which deal with a little over half of all the debt handled in credit counseling, assisted over 1.4 million Americans in 1998. About 504,000 of these consumers, who carried a debt of $2.3 billion, entered debt management programs. In 1988, by contrast, only 254,000 consumers entered debt management at NFCC agencies.
Reporting Pub: Consumer Federation of America
Pub Date: 7/28/99
Article Title: LARGE BANKS INCREASE CHARGES TO AMERICANS IN CREDIT COUNSELING
Credit Counselors Income
Virtually all of the credit card issuers in the CFA survey have sharply reduced their contributions to credit counseling agencies below 15%, which for many years was the industry standard. Most banks contributed 10% or less, with two banks among the top ten issuers, MBNA and Household Credit Services, contributing only 6%. Key Bank was the only bank in the CFA survey that is still paying a 15% contribution to credit counseling consumers.
Reporting Pub: Consumer Federation of America
Pub Date: 7/28/99
Article Title: LARGE BANKS INCREASE CHARGES TO AMERICANS IN CREDIT COUNSELING
Average Credit Counseling Client
Age: 36.5
Male: 46.2%
Female: 53.8%
Never Married: 35.0%
Married: 46.2%
Separated, Divorced or Widowed: 18.8%
Number In Household: 2.8
Buying or Own Their Home: 41.6%
Average Annual Gross Income: $29,425
Average Total Debt: $23,184
Average Number of Creditors: 10.1
Debt as % of Annual Income 78.8%
*The average total debt figure does not include mortgage debt or rent.
(Source: NFCC)
Average Card Balance
Today (2001), the typical U.S. household carries an averabe credit-card balance of $7,500 up from less than $3,000 in 1990.
Reporting Pub: My Generation (Sep-Oct 2001)
Pub Date: 10/1/01
Article Title: Drowning in Debt
Article Author: Gary Belsky
Interest Rate Hikes After a Late Payment
Consumer Action, a nonprofit organization that surveys credit card issuers each year, found earlier this year that 69% of issuers jack up the rate--to as high as 29.99% in some cases--after just one late payment.
Reporting Pub: Kiplinger's Personal Finance
Pub Date: 11/1/01
Article Title: Take Charge
Article Author: Elizabeth Razzi and Catherine Siskos
Losses Due to Credit Card Fraud
Around the world, bank card fraud losses to Visa and Master-Card alone have increased from $110 million in 1980 to an estimated $1.63 billion in 1995. The United States has suffered the bulk of these losses-approximately $875 million for 1995 alone. This is not surprising because 71 percent of all worldwide revolving credit cards in circulation were issued in this country.
Reporting Pub: The FBI
Pub Date: 6/1/97
Article Title: Plastic Payments: Trends In Credit Card Fraud
Article Author: Keith Slotter, CPA
Annual Credit Card Survey Findings
· The prime rate was 9.00%-9.50% during last year's survey, which was conducted during January 2001. During the current survey, done Dec. 12, 2001-Feb. 11, 2002, the prime rate was 4.75%. The lower prime rate is reflected in the average APR of all surveyed cards, 11.73%-3.44 percentage points below last year's average of 15.16%.
This year shows that the one-time industry standard requiring cardholders to pay monthly minimum payments of 4% of the outstanding balance has gone the way of the dinosaur. Minimum payments are now 2%-3%. Of the 126 surveyed cards, 43% require cardholders to pay only a tiny 2% of their outstanding balance each month. The industry standard was 4% for many years-none of the cards surveyed this year require 4% minimum monthly payments. Another 31 surveyed cards (25%) require minimum monthly payments of 2%-2.5%.
There has been a large jump in banks using risk-based pricing. CA found that 37% of surveyed institutions force applicants to apply for a card before letting them know the APR on their new card. Two years ago, CA found only 14% of surveyed issuers using this tactic. Surveyed issuers that employ this tactic in 2002 include American Express, Bank of America, Bank One, Capital One, Chase Manhattan Bank, Citibank, Direct Merchants Bank, Firstar Corporation, Five Star Bank, Generations Bank, People's Bank, Providian Bank, Sears National Bank, US Bank, USAA Federal Savings Bank and Wells Fargo Bank.
Late fees have risen sharply, up 7% in just one year. Late fees ranged from $10 (California Bank and Trust and Generations Bank) to $35 at many issuers. The majority of surveyed cards-72, or 57%-charge $29 late fees. CA found an unprecedented 10 cards with late fees of $34-$35 as well as 15 cards with a range of late fees between $15-$35. In last year's survey, only one issuer (Fleet Bank) had broken the $30 level. The average of all late fees this year is $27.82-a 7% jump from last year's $26 average late fee. By comparison, late fees in CA's survey a year ago had increased only 2% in the preceding year.
Seventy-two percent of issuers surveyed-up from 68% last year-said they would hit cardholders with a late fee if their payment was not received by the due date. Of the issuers granting a bit of slack, the period ranged from one day to 10 days.
If you don't pay on time, late fees are not the only punishment you face. Almost three-quarters of all surveyed cards (74%) feature penalty rates (also known as default or delinquency rates) for customers who make one or more late payments. Last year, only 69% of surveyed issuers did this. This year, penalty rates found by CA range from 12% (Arkansas National Bank) to 29.49% (Direct Merchants Bank).
More issuers are charging currency conversion fees on purchases made in other countries-up to 4% of the amount. The MasterCard and Visa networks take a 1% commission for purchases or cash advances abroad. CA found that 16 of the surveyed issuers (37%) now tack on an additional conversion fee to overseas purchases.
Eighty-five of the surveyed cards (67%) charge cash advance fees of 3%-3.5% of the amount advanced, while 24 charge 2%-2.5% and 13 charge 4%. Household Bank charges 5% cash advance fees on its two surveyed cards. Generations Bank has a flat fee of $2 for each advance. Pulaski Bank
Trust is the only bank in the survey with no cash advance fee.
Of the 126 surveyed cards, 78 (61.9%) have higher interest rates for cash advances. (This is a slight increase from last year's survey, which found 60% of cards with higher cash advance APRs.)
Of the 43 surveyed issuers, 33 (77%) offered initially lower "teaser" APRs to new cardholders ranging from zero-interest deals up to 9.99%. The average introductory rate on purchases was 3.63% and the average for transferred balances was 3.95%. Most offers stay in effect six months.
Reporting Pub: Consumer Action
Pub Date: 3/2/02
Article Title: Annual Credit Card Survey 2002
Payments and Disposable Income
When rates fall, the cost of servicing debt should fall, too. Yet the Federal Reserve says that household debt-service payments were more than 14% of disposable income in the first quarter, near the highest level in 22 years.
Reporting Pub: NEWS ANALYSIS
Pub Date: 8/3/02
Article Title: Consumer Credit: Is a Crunch Coming?
Article Author: By Peter Coy and Heather Timmons in New York , with Brian Grow in Atlanta , David Welch in Detroit , and Mike McNamee in Washington
Source: Business Week Online
Debt vs. Income
The amount that Americans owe on loans for houses, cars, credit cards, and other purchases adds up to nearly 100% of their annual income after taxes. That's up from 75% in 1992, after the last recession ended.
Reporting Pub: NEWS ANALYSIS
Pub Date: 8/3/02
Article Title: Consumer Credit: Is a Crunch Coming?
Article Author: By Peter Coy and Heather Timmons in New York , with Brian Grow in Atlanta , David Welch in Detroit , and Mike McNamee in Washington
Source: Business Week Online
Late Payments
The percentage of 33-35 year-olds who are more than 60 days late on credit payments jumped by more than a third from 1992-1998; for 45-54 the jump was almost two-thirds.
Reporting Pub: My Generation (Sep-Oct 2001)
Pub Date: 10/1/01
Article Title: Drowning in Debt
Article Author: Gary Belsky
ATM surcharge distribution
According to the fifth annual study of ATM fees by the US Public Interest Research Group, the cost to use another bank's ATM has tripled since the banks began imposing surcharges back in 1996. The tab is now $2,86. About half of that money ($1.39 on average) goes to your own bank; the rest ($1.47) goes to the owner of the machine.
Reporting Pub: USA Weekend
Pub Date: 6/22/01
Article Title: Duck those pesky ATM fees
Article Author: Jean Sherman Chatzky
Source: US Public Interest Research Group
Financial Education in the Home
Only 32 percent of parents/guardians regularly talk to their children about personal finance or money matters.
Reporting Pub: NFCC News
Pub Date: 6/20/01
Article Title: 2001 High School Financial Literacy
Source: America 's Money Skills Report Card
Banks just hate bounced checks…
According to a Consumer Federation of America study, banks charge 11 to 32 times their actual cost to process a bounced check, and generate $5.2 billion a year in revenue from bounced checks.
Reporting Pub: Bankrate.com
Pub Date: 1/1/01
Total Public Debt
As of 7/31/01 the total public debt of the US was $3,266,222,376,162.12.
Reporting Pub: www.publicdebt.treas.gov
Pub Date: 7/31/01
Article Title: The Debt to the Penny and Who Holds It
Fraud in America
Fraud and abuse costs U.S. organizations more than $400 billion annually.
The average organization loses more than $9 per day per employee to fraud and abuse.
The average organization loses about 6% of its total annual revenue to fraud and abuse committed by its own employees.
The median loss caused by males is about $185,000; by females, about $48,000.
The typical perpetrator is a college-educated white male.
Men commit nearly 75% of the offenses.
Median losses caused by men are nearly four times those caused by women.
Losses caused by managers are four times those caused by employees.
Median losses caused by executives are 16 times those of their employees.
The most costly abuses occur in organizations with less than 100 employees.
The education industry experiences the lowest median losses.
The highest media losses occur in the real estate financing sector.
Occupational fraud and abuses fall into three main categories: asset misappropriation, fraudulent statements, and bribery and corruption.
Reporting Pub: Association of Certified Fraud Examiners
Pub Date: 1/1/96
Article Title: Report to the Nation
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