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Maxed Out: On the Verge of Bankruptcy, Again

SavvySugar — Mon, 24 Nov 2008 13:00:24 -0800

This episode of Maxed Out is about Karen, a single mom of a 9-year-old girl named Bailey, and she's in danger of having to declare bankruptcy for the second time. She says she'll feel like a loser if it happens again, and everything she cares about — her daughter, financial stability, and her home — is at risk. Karen has no savings for herself or for Bailey's future. Even though she's always short on rent and lives on cash advances, Karen can't help herself from her favorite four-letter word: sale. Find out if financial guru Allison Griffiths can stop Karen from spending her way in to a second bankruptcy when you

Maxed Out: Single Mom Faces Eviction

SavvySugar — Wed, 12 Nov 2008 09:30:30 -0800

This episode of Maxed Out made me feel for the in-debt participant more than any other. It's about a 27-year old single mom named Marybell who left her abusive ex-husband five years ago with her three children. Her ex doesn't provide any child support and Marybell used debt as a stepping stone to gain independence — the only trouble is that it's gotten out of control.

A collections company calls her at work every day, her electricity was turned off and she had to use rent money to pay the bill, they've been without gas for two months and cold weather is approaching, and the family is in danger of being evicted from their apartment. Find out more about Marybell's situation and what happens when financial guru Allison Griffiths steps in to help, just

Maxed Out: Couple Finances Down Payment With Credit Cards

SavvySugar — Fri, 07 Nov 2008 13:00:19 -0800

"I do something I want even if I know I don't have the money. I don't see why I shouldn't buy a sweater or go out with friends." That's 23-year old Crystal talking, and she and her 25-year old husband Jeremy are $25,000 in debt. This episode of Maxed Out is about this young married couple who is living on one income: Jeremy makes about $40,000 a year and Crystal stays at home with their one-year old son. They are carrying way too much debt for how much income is brought in, and their cash flow could never support their future plans for Crystal to continue staying at home. Find out more about their finances when you

Should the Deeply Indebted Get Credit Card Forgiveness?

SavvySugar — Mon, 03 Nov 2008 06:15:29 -0800

Consumers are increasingly defaulting on their credit card balances and banks are suffering because of the massive debt write offs due to the defaults. To remedy the situation, an alliance of financial industry interests and consumer advocates proposed a special program to the government. As legislative director for Consumer Federation Travis Plunkett says, "In this case we have a clear common interest." Most of the biggest credit card banks are on board with a pilot program that allows lenders to forgive up to 40 percent of a borrowers debt, with the maximum forgiveness going to consumers nearing bankruptcy. Existing rules that allow for the reduction of principal require the debt to be paid in a matter of months, while the pilot program will allow the remaining debt to be paid over several years. Do you think the pilot program is a good idea? Source

Should the Deeply Indebted Get Credit Card Forgiveness?

Yes, the partial forgiveness will help people and banks.

Maybe, I'm torn on this one.

No, this will only encourage people to default on their cards.

Something else. See my comments below.

Smart Cookies Make Money Issues More Manageable

SavvySugar — Mon, 03 Nov 2008 03:30:43 -0800

It may not feel natural to be transparent about your finances, but five Vancouver women have shown that being honest with others about your financial situation can make you feel more accountable for it. The Smart Cookies money club started as a group of women conversing about personal money issues and the lessons learned from their time together have been turned into a book, The Smart Cookies’ Guide to Making More Dough.

Andrea Baxter gathered four other women together to form the money club in 2006 after she'd accumulated $18,000 in debt beyond her mortgage, and in two and a half years the five members have helped get everyone on track and keep them there. As reported by The New York Times, the Smart Cookies' meeting agenda follows the same format every time: Good news from every member, a spending check-in, individual debt reports, brainstorming about how to make more money, a discussion topic that someone has researched, and goal setting.

Does a money club sound appealing to you, or is it too much sharing for your level of comfort?

Do Your Parents Know About Your Financial Situation?

SavvySugar — Tue, 28 Oct 2008 08:00:38 -0700

Debt can be a difficult thing to talk about with your family, and many young adults in debt are fearful their parents will be disappointed and consider them financial failures. Whether you run a tight ship when it comes to money and are smooth sailing, or you've found yourself in financial trouble, money isn't necessarily a topic that's comfortable to talk about with mom and dad. What do your parents know about your financial situation?
Source

Do Your Parents Know About Your Financial Situation?

My parents have a good idea about my financial state.

They have a general idea about my finances, but we don't really talk about it.

My parents don't know much about my finances.

Something else. I'll tell you in the comments.

Maxed Out: My Debt Is Killing Me

SavvySugar — Mon, 27 Oct 2008 12:30:37 -0700

This episode of Maxed Out is about Brooke, a 32-year old who has given up hope on her financial situation and the stress has begun to affect her physical and mental health. Sadly, Brooke says that she comes home from work and cries alone every night about her debt, and proclaims, “My debt is killing me. I am my debt.” Financial guru Allison Griffiths runs the numbers and finds out that in fact, it appears Brooke has become her debt. Find out more about Brooke’s situation when you

Graduates Flee US to Escape Student Loans

SavvySugar — Sat, 25 Oct 2008 11:00:57 -0700

Student loans are increasingly necessary for many students to pay for college, but these massive debts are causing some graduates to flee the country. It may seem dramatic, but leaving the country sometimes seems like the only option for grads that have defaulted on their student loans and can't find another way to escape the debt collectors.

CNN Money profiled a student loan fugitive named Chris who got a foreign address to escape his $160,000 student debt from getting a master's degree in music. He anticipated his monthly payments to be around $600, but they turned out to be a completely unmanageable $2,400. Chris says, "I am upset at myself. I could have gone to a cheaper school. But I'm most angry at the fact that for anyone who has debt that's not student loan debt, there's relief."

In some cases, student loans are discharged or partially discharged because of hardship. Chris and other graduates who feel helpless should explore these options before fleeing the country.

Source

Money Tip: What to Do When You're Done With Your Debt

SavvySugar — Tue, 21 Oct 2008 12:30:58 -0700

Forty-seven percent of you have credit card debt, and another 12 percent of you are almost finished paying off your balances — keep plugging away! It's common to lose momentum in becoming financially healthy once you are rid of debt; enjoy the feeling of having a huge weight lifted from your shoulders, but avoid the temptation to relax your rein on spending.

Hopefully you were able to put some money aside while paying off your credit cards, but when you're done with your debt, turn your main focus to saving and building an emergency fund. Replace the spot in your budget for debt repayment with deposits to your savings account. It will be satisfying to make those monthly transfers and watch your own account grow, rather than remitting your plus-interest payments to the credit card companies.

Source

Maxed Out: Best Friends in Debt Together

SavvySugar — Mon, 20 Oct 2008 12:30:02 -0700

We're familiar with money breaking up marriages, but this episode of Maxed Out featured another type of relationship threatened by debt: best friends. Christine and Meredydd bought a condo together so they could build equity and eventually get their own condos, but their debt is taking away from any equity and Christine says in six months they might not be friends if they keep fighting about money. These two 27-year-olds spend an insane amount of money on restaurants and take-out each month and both admit that it's their biggest spending weakness. Find out how much they're spending on food when you

Have You Ever Gone Over Your Credit Limit?

SavvySugar — Thu, 09 Oct 2008 06:30:21 -0700

Source

Have You Ever Gone Over Your Credit Limit?

Yes, I've gone over my credit limit.

No, but I've come dangerously close.

No, I've never gone over my limit.

I've never had a credit card.

Finally, Consumers Are Cutting the Credit Cord

SavvySugar — Wed, 08 Oct 2008 06:30:01 -0700

For what seems like ages financial gurus have been lamenting that consumers rely too much on credit cards, and finally people have begun to listen — all it took was a failing economy! The Federal Reserve announced on Tuesday that consumer borrowing fell in August for the first time since 1998 and that was before the crisis worsened in September. Consumer borrowing is defined as loans not secured by real estate, and auto loans and credit cards were the two areas that led to a decline in consumer credit.

Consumer spending, not to be confused with consumer borrowing, makes up two-thirds of total economic activity. Economists are worried this number will fall in the third quarter, something that hasn't happened since 1991. It's a confusing scenario with mixed messages — consumers need to save more in a tough economy, yet when we don't spend and stimulate the economy we risk damaging it further. Once we see improvements that make people more confident in the economy and feel more secure in their jobs, spending will naturally increase, but hopefully consumers have learned that living on credit cards is no longer a viable option.

Source

Maxed Out: A Couple Plays the Financial Blame Game

SavvySugar — Mon, 06 Oct 2008 09:30:22 -0700

While this episode of Maxed Out was filmed many months before the recent slew of economic news, the home equity credit trouble the couple has in the show is connected to what's going on today: According to The New York Times, Americans owed about $593 billion in home equity loans in 2003, but the current related debt is $1.1 trillion. The couple in this Maxed Out, Rhonda and Les, make a combined income of $104,000 but they've used up their total $100,000 home equity credit line and don't have a penny in savings.

When financial guru Allison Griffiths asks the couple why they came to her for help, Rhonda doesn't skip a beat with her answer that "he spends too much," to which Les turned the pointed finger back around. Allison says the first problem to tackle is getting them to share responsibility for their shared debt. Find out how she helps them when you

Four Ways to Get a Grip on Your Finances Right Now

SavvySugar — Thu, 02 Oct 2008 12:30:29 -0700

While there's no doubt the heads on Capitol Hill are spinning with what's been happening in our economy, it's not exactly a picnic for those of us feeling like we have a million and one unanswered questions. Watching big banks collapse and listening to what the news tells us was a horrendous day for the market, followed by the worst day ever, doesn't do much for the people anxiously sitting on the sidelines. Here are three things you can do right now to get a grip on your finances.

Spend wisely and save as much as you can: Sometimes, it's easier to turn a blind eye on the things that make us anxious instead of dealing with them. Now is not one of those times. Buckle down on your budget and figure out how you can save more.
Pay off debt: The economy has already lost 605,000 jobs this year and that number is likely to continue growing. You need to get aggressive with your debt (especially the high interest kind) in case you find yourself jobless — you'll need your savings for everyday expenses instead of debt repayment costs.

See two more ways to get a grip on your finances right now when you

Store Credit Card Strategy Backfires on Retailers

SavvySugar — Tue, 30 Sep 2008 04:00:40 -0700

The years of consumer excess have finally begun to take their toll on retailers — they constantly asked people to sign up for credit cards in exchange for discounts, and now that strategy is backfiring as consumers struggle to pay back their debt. Hopefully those of you that are carrying store credit cards in your wallets are not part of the growing population that are falling behind on their store credit card bills.

Stores like Target, Home Depot, and Macy's are caught in a bad place going into the holiday season. More and more customers are defaulting on their store cards, which can erode the stores' margins, and the higher delinquency frequency comes at a time when retailers are already anticipating the worst holiday sales in years. Customers with pattern defaults may discover their cards canceled without any say, as the banks that own the store credit portfolios are proactively trying to protect themselves.

Source

Maxed Out: Binge Shopper Fills Void by Using Credit Cards

SavvySugar — Mon, 15 Sep 2008 12:30:34 -0700

This episode of Maxed Out is about Alicia, a 30-year old woman who works in advertising and has trapped herself in a pattern of binge spending. A couple years ago she was $20,000 in debt and got a consolidation loan she got to help her pay it off. After paying down about $10,000, she started using credit cards again and increased her debt load to $20,000 once again. Alicia maxed out three credit cards in just two months, and Allison Griffiths develops a plan to help Alicia regain self-control. Find out what happens with Alicia's debt problem when you

I'm Asking: How Did You Get Into Debt?

SavvySugar — Mon, 08 Sep 2008 11:00:41 -0700

Fifty-four percent of you are carrying a credit card balance, and many of you currently not carrying credit card debt may have been in the red at some point. What pushed you in to debt: Was it a shopping habit, paying bills when you didn't have a job, parking tickets, furniture, or a combination of other things?

Source

How to Determine Your Net Worth

SavvySugar — Mon, 08 Sep 2008 09:30:55 -0700

You may have valued some classic college photos as being worth a thousand inexplicable words, easily appraised by your fond memories. Calculating your net worth is a little more complicated, but it simply comes down to determining the difference between your assets and liabilities.

Just like a big corporation working their balance sheet to report to shareholders, you have a personal balance sheet that indicates the bottom line of your financial health. Find out how to break down your money and possessions into assets and liabilities when you

Repaying Debt Takes More Money Than You May Think

SavvySugar — Fri, 29 Aug 2008 10:00:34 -0700

When you consider taking out a loan or borrowing money by using your credit card, think about personal finance guru M.P. Dunleavey's powerful debt math. She estimates that it takes $16,400 in income to pay off a $10,000 loan at 15 percent interest. Check out her reasoning in the video below.

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Definition: Debt Snowball Plan

SavvySugar — Thu, 28 Aug 2008 15:30:09 -0700

Personal finance guru Dave Ramsey developed the debt snowball plan as the debt repayment part of his method for getting finances on track. The plan is based on psychology and relies on determination. The debt snowball plan goes as follows.

Save $1,000 in an emergency fund.
Pay off smallest debt first to create momentum for sticking with the plan. If two debts have similar balances, first pay off the one with the higher interest rate. Continue making minimum payments on all other debts.
Once you have paid off one card, add that payment to what you're currently paying on the card with the next lowest balance.
The plan suggests that the compounding payments and momentum from reducing the number of credit cards with balances should get you out of debt quickly.

Source

Ask Savvy: How to Manage Money as a Couple

SavvySugar — Mon, 25 Aug 2008 09:30:39 -0700

Dear Savvy,

My fiance and I combined our finances shortly after we got engaged last August, and I am in charge of managing our money. We're getting married in November. Right now, we pay everything we can with a credit card. This includes any bills we can charge (phone, cable, rent) and all our daily expenses. The plan was that every month we would pay off the card. I figured this would make sure that we never overdrew our checking account.

The problem is that every month it seems like we spend a little more than we can send to the card, and over time that amount is really adding up. My credit is very good, and the card we use was originally in my name only, so we have a very low interest rate. However, it was never my intention for us to be carrying a balance on this card.

I'm afraid if we switch to using a check card and paying all bills directly from checking, we'll risk overdrawing the account. But I know the current credit card plan isn't working, because we are just going into debt. I need help!

See my advice when you

Your Two Cents: Do You Have Any Credit Card Debt?

SavvySugar — Fri, 22 Aug 2008 14:00:24 -0700

The median credit-card debt of those aged 18 to 34 earning low- and middle-income is $8,200. Are you carrying any? Source

Your Two Cents: Do You Have Any Credit Card Debt?

Yes, I have credit card debt.

I have some credit card debt, but it's almost paid off!

No, I'm not carrying a balance on my credit card.

Something else. I'll tell you in the comments below.

Maxed Out: Debt Threatens to Divide a Couple

SavvySugar — Mon, 18 Aug 2008 12:30:04 -0700

This episode of Maxed Out is about Sondra and Ashton, a couple who has been living together for about a year and share careers in counseling but have opposite money habits. Sondra is 28 years old and Ashton is 25, and while he is taking trips with the money he's saved she is tinkering on the edge of bankruptcy.

Ashton's saving ways have put him in a good financial place but Sondra's spending tendencies have put her $56,000 in debt. Find out more about their situation and Sondra's plan to get out of debt when you

Twenty-Somethings Still Seeking Parental Aid

SavvySugar — Thu, 14 Aug 2008 15:30:23 -0700

An MSN Money article asking why Gen Y is broke started out as a typical article, arbitrarily wondering why we're incapable of managing our money (and asking questions like, "Is Gen Y dumb or just lazy?"), but nestled within are a few startling statistics.

This one is particularly striking: According to a recent Pew survey, 68 percent of baby boomers are supporting at least one of their adult children financially. It's hard to believe that only a third of 20- and 30-somethings are financially independent.

The reason for so many dependent young adults becomes clear with some of the other stats the article mentions. The average college debt for recent grads is more than $20,000; those between ages 25 and 34 make up 22.7 percent of all U.S. bankruptcies; the median credit-card debt of those aged 18 to 34 earning low- and middle-income is $8,200.

The good news? The more financial education we get, the less likely we'll be broke in the years to come, and we'll be able to teach our own children important lessons in financial literacy. Are you still receiving some help from your parents here and there?

Source

Savvy ATM: Store Credit Cards and Your Credit Score

SavvySugar — Tue, 12 Aug 2008 12:30:16 -0700

Sixty percent of you admitted that you have current store-specific credit cards in your wallets, and most acknowledged initially signing up for the introductory discount. Deals can be difficult to pass up, but it's crucial to consider the elements of a store card before you agree to one in your name.

Besides the bait of receiving a discount off your initial purchase and other card-holder benefits along the way, store credit cards work just like any other credit card. They likely come with interest rates higher than your usual card and are factored into your credit score just as any other card. But what if you fill out a credit card application to get the discount but never actually use the card? Find out how this affects you when you

Savvy Solution: Two Ways to Tackle Debt

SavvySugar — Mon, 11 Aug 2008 08:00:24 -0700

Like most things related to money, formulating a plan is the surest way to stick to your goals. Some debt slayers simply throw most of their money (after living expenses) at their debt to pay it off as quickly as possible, and hit the ground running without a clear path. Other debt-ridden dames focused on making a change need more focus to get motivated.

When multiple credit cards are involved, the question arises of where to begin. One school of personal finance thought recommends that the card with the smallest balance, regardless of the card's interest rate, be paid off first. The strategy assumes that once the first card's debt is paid down it creates a sense of momentum that charges you to move on to the next card, and so on. Discover a different method for tackling debt when you

Definition: 401(k) Debit Card

SavvySugar — Thu, 07 Aug 2008 15:30:03 -0700

A 401(k) debit card is deceivingly like the debit cards you're familiar with, except the money is drawn from your retirement savings and must be paid back to yourself with interest — essentially, it is a loan against your 401(k). You're responsible for making punctual payments, and if you miss one, you risk having to pay early withdrawal penalties.

While you'd be paying interest now, you'd really be borrowing from your future self. When you remove funds from your retirement savings it reduces the potential for compounding interest, therefore hurting your overall long-term savings goal and strategy. Do yourself a favor and pretend that 401(k) debit cards don't exist; you'll be grateful when you need to rely on those funds for living.

Source

Maxed Out: Like Mother's Poor Money Habits, Like Daughter

SavvySugar — Wed, 30 Jul 2008 08:00:26 -0700

This episode of Maxed Out is about Karen and Caitlin, a mother and daughter pair who are struggling to save for Caitlin's college education because they're living beyond their means. Karen has no savings and too much debt (about $20,000 and growing) to help save for college, and Caitlin is copying her mom's bad money habits. Caitlin has spent every penny of her income from her Summer part-time job on eating out and wants to start culinary school in just one year.

Karen is worried that Caitlin will go through a life of stress over money like she has and knows that her old habits are quickly becoming Caitlin's new ones. Financial guru Allison Griffiths thinks they need some behavioral modifications; find out what they are when you

Ask Savvy: In Need of Savings Tricks to Pay Off Debt

SavvySugar — Fri, 25 Jul 2008 12:30:13 -0700

Dear Savvy,

I read the Savvy posts almost every day because I am in tons of debt and seriously need help. I'm the type of person that needs actual tricks to save. I have zero willpower when it comes to money. I keep seeing the Bank of America adds for Keep the Change and I feel that could really work for me. I was just wondering if you knew of any Canadian institutions offering similar programs. I've tried searching on the Internet but with no success. Any more tricks you could offer?

See my answer when you

Ask Savvy: How Do I Know If a Collections Agency Is Real?

SavvySugar — Wed, 23 Jul 2008 09:34:36 -0700

Dear Savvy,

I just received a letter from a collections agency (RJM Acquisitions) for an overdrawn checking account. It says the date account opened was 12/14/01. I had gone through some rough times and around that time had defaulted on two credit cards. A couple years ago, two different collection agencies contacted me on those and I paid them off. When I look up this company online, Rip Off Reports and such are pretty much all that come up, so I feel like this might be something fishy. My question is this: What do I do to confirm this is real and legal? I don't have any bank records or information from that time.

See my answer when you

Study: Consumers Hope to Cut Debt and Save More

SavvySugar — Mon, 21 Jul 2008 08:00:33 -0700

There's a study being released this week that claims Americans are worried about the job market and oil prices and plan to pay off debt and boost savings in anticipation of further economic turmoil.

The survey, which was done by Reuters and the University of Michigan, says half of US consumers polled plan to work on reducing their debt and a third said they plan to save more in the year ahead. Here's more:

"Most of the planned declines in debt and increases in savings are intended as a precautionary measure in the face of a deepening economic downturn," Richard Curtin, director of Reuters/University of Michigan Surveys of Consumers, said in a statement

A recent poll here on Savvy showed only 10 percent of readers have maintained the same spending habits amid the rising prices of food and gasoline, so I am not the least bit surprised by the findings. Are you actively trying to cut your debt?
Source

Maxed Out: 20-Something Newlyweds, $100,000 in Debt

SavvySugar — Fri, 18 Jul 2008 06:31:25 -0700

Maxed Out is finally back with some new episodes, and it seems like the show will never run out of material. This episode is about Erin and Darryl, newly-wedded 20-somethings who have managed to dig themselves into over $100,000 in debt.

They have $16,500 in credit card debt, $25,000 in student loans, and owe their parents a whopping $60,000. At the rate they are going, it will take nine years and $39,000 in interest for them to become debt free. Find out how financial guru Alison Griffiths helps them figure out a plan when you

Definition: Debt Consolidation

SavvySugar — Fri, 11 Jul 2008 15:38:47 -0700

Debt consolidation can take the form of home equity loans or lines of credit, balance transfers to a zero-percent interest credit card, and debt-consolidation loans. Debt management and credit counseling are other options to consider before shifting your debts.

Borrowing against your home means you could lose your home if you defaulted on the loan, but some consider this a favorable choice because equity loan interest generally is tax deductible. Zero-percent cards allow a borrower to pay debt at zero interest for an introductory period, but if the debt isn't paid within that short time, the borrower is again stuck paying regular rates and hasn't made much leeway.

When a financial institution consolidates a consumer's debts, it combines her multiple debts into one and lowers her monthly payment. Because this involves taking out a loan to pay off existing debts, there are risks involved and it doesn't solve underlying issues of why debt has been incurred in the first place. This should only be a viable option if the costs of the bundled loan will be less than the current payments to various creditors.

Source

Ask Savvy: My Boyfriend's Parents Ruined His Credit

SavvySugar — Mon, 07 Jul 2008 12:34:16 -0700

Dear Savvy,

My boyfriend's family has had a lot of money problems in the past few years that they kept hidden from him. Things all came out in the open when he was kicked out of school because his parents couldn't pay his tuition, which they had told him was already paid. Turns out they had almost lost their house and had to resort to opening credit cards in both his and his brother's names, which they couldn't afford to make payments on.

He's been working hard to try and pay off the debt his parents put him in, but it seems like every time he gets close they tell him of another loan or credit card in his name that he didn't know about. He can't even go back to school because he can't get a loan anywhere to pay for it, and is now afraid he will never be able to get a good job. Is there anything he can do to help his situation, or is his credit going to be bad forever?

See my answer when you

Is Bad Credit a Dealbreaker in Serious Relationships?

SavvySugar — Thu, 03 Jul 2008 08:04:12 -0700

Once you learn to love the little things about your guy, there are bigger issues that naturally surface, as your relationship gets more serious. You've seen him handle money from the first date night out, but you never get a glimpse of how he really handles money until further down the road. Brette McWhorter Sember, author of The Complete Credit Repair Kit knows several couples that didn't tie the knot because of one partner's atrocious credit score. It's important to be on the same financial page in terms of goals and a sense of well-being, but hopefully it's possible to postpone a wedding until both parties' finances are in order instead of calling it off altogether. Would someone's bad credit scare you away from being his wife? Source

Is Bad Credit a Dealbreaker in Serious Relationships?

Yes, I need someone who has a history of being responsible with money.

It depends how they got into credit trouble (bad decisions vs. bad luck).

No, it's something that can be improved over time and isn't worth sacrificing a good relationship.

Other. I'll tell you in the comments below.

Your Two Cents: Is Compulsive Buying a Mental Disorder?

SavvySugar — Mon, 30 Jun 2008 12:33:06 -0700

Buying things to make yourself feel better, getting the high for a short while, coming down with hateful guilt, and repeating the process until you're deep in debt is the basis for compulsive buying. It's an addiction that millions of people struggle to overcome and there are support groups like Debtors Anonymous to aid in recovery. According to a study in the American Journal of Psychiatry, 5.8 percent of Americans suffer from this kind of compulsion. For years the American Psychiatric Association has been discussing including compulsive buying in its manual of mental disorders — do you think it should be identified as such? Source

Your Two Cents: Is Compulsive Buying a Mental Disorder?

Yes, compulsive buying is a mental disorder.

Maybe. It shows some signs but I'm not sure it qualifies compared the severity of existing mental disorders.

No, it may require some therapy but it isn't a mental disorder.

Other. I'll tell you in the comments below.

Savvy ATM: Start Saving For the Holidays

SavvySugar — Wed, 25 Jun 2008 12:35:09 -0700

Today is June 25, which marks the six-month point to the 2008 holidays! Hanukkah begins on December 21 this year, the 25th is of course Christmas, and Kwanzaa begins on the 26th. There's a good chance you know which friends and relatives will be receiving gifts this year from the little elf in you, so there's no excuse why you shouldn't begin setting aside money now for the holiday season.

Credit card balances typically surge during this retail prime time and you don't want your balance to be one of them. Charging a $100 gift on your credit card and not paying it off immediately means that you're paying more for the gift than its retail price. Prevent going into debt from holiday spending by starting to save a bit each month. If you're already transferring money from your checking to savings regularly, simply up the amount that's automatically moved to account for your holiday gift fund.

Source

Demand For Debtors Anonymous Groups on the Rise

SavvySugar — Wed, 11 Jun 2008 14:07:44 -0700

For decades, Debtors Anonymous has been offering organized group therapy for "compulsive debting," but its membership has seen a substantial increase now that there's less shameful stigma surrounding debt. The group has especially seen growing demand in Arizona and Southern California because of the large concentration of foreclosures in those areas, but its members live all over the country.

Members not only have a forum to confess and discuss the depths of their debt problems, but they also share ways to break bad habits and get on track. And when someone falls off the wagon, the person tells her group, and together they figure out a plan of action. It's important for those feeling crushed by debt to know they aren't alone, and the 11.8 million delinquent bank credit-card accounts and millions of foreclosure filings make it clear that debt is a growing problem.

Debt's Unhealthy Effects on Your Wellness

SavvySugar — Tue, 10 Jun 2008 11:06:06 -0700

Stress in general takes a toll on our physical well-being, and recent polls have shown that stress caused by debt is particularly harmful. Debt has a pronounced way of weighing in, and the thousands of dollars can feel like thousands of pounds on your shoulders — but a deep-tissue massage won't heal these debt side-effects. Find out why you should eat right, exercise, and stay out of debt when you

Do Today: Take This First Step Toward Getting Out of Debt

SavvySugar — Thu, 05 Jun 2008 09:46:13 -0700

Stop using your credit card. Sure, it's easier said than done, but it's also exponentially easier to charge more to your credit card than it is to pay it off. It's tempting to put larger purchases like plane tickets on your credit card because you don't want to see those big amounts deducted from your bank account.

You're paying for those purchases no matter what method you use, and they will only end up costing you more when interest is added to those credit card balances. Bottom line: it’s difficult to rid yourself of credit card debt when you're still adding charges here and there, so embrace restraint when reaching into your wallet for that high-limit card of yours.

Source

Maxed Out: Clean Slate Wedding

SavvySugar — Tue, 27 May 2008 13:09:40 -0700

This episode of Maxed Out features Tabetha and Greg, a couple in their mid-twenties planning to get married in exactly 14 months. The only problem is that the two of them together equal one big financial mess. Tabetha has a growing pile of debt that is currently at $34,000 on top of her mortgage, while Greg can't offer any advice because he knows absolutely nothing about managing money. He's a debt-free student living at home and gets an allowance from his parents, and he and Tabetha hadn't ever talked about money until recently. They don't want to start their lives together with old financial baggage, so in order to have a clean slate wedding they call in Allison Griffiths to work her magic. Find out how she helps the pair when you

Bank Lends Woman on Welfare £5,000 For Nose Job

SavvySugar — Mon, 05 May 2008 06:26:49 -0700

The current credit-crunch isn't confined to the US and across the Atlantic Great Britain has been trying to solve their own credit crisis. In what some have called "one of the most irresponsible loans ever," British bank NatWest lent 18-year-old Roma Shears £5,000 for a nose job. Roma is a single mom living on state benefits and admits that she doesn't have any savings. When she approached the bank for £4,000 to cover a £3,600 nose job, the bank responded by giving her a loan for £5,000. Feeling nosy? Just

Maxed Out: Family Stresses and Debt Become Overwhelming

SavvySugar — Tue, 29 Apr 2008 04:18:48 -0700

This episode of Maxed Out is about Yvonne and David, a couple who spends more time in the red than in the black. Their heavy debt load and stresses of caring for David's elderly parents make it difficult for them to even enjoy spending time with their kids. While they'd like to be in a position to help his parents financially, they need to help themselves before they can even think about helping anyone else. Fearing bankruptcy, Yvonne and David can't figure out a way to continue living with the emotional stress of debt and call on financial guru Allison Griffiths to get the family on track. With a monthly shortfall of $2,300 and an amassed debt of about $35,000 Allison has her work cut out for her. To see how she helps them just

Woman Auctioning Her Family's Debt on eBay

SavvySugar — Mon, 28 Apr 2008 11:33:11 -0700

The Indiana University alumni who tried to auction her student loans on eBay didn't have much luck, but another woman is hoping there are buyers out there who would be more willing to bid on her family's $103,254.11 debt. The listing is titled "My Debt, all of my worldly bills comes with house and car" with the caption "My Family Second Chance," and the seller provides a picture of the house, car, and a photo of her family of five. To see a breakdown of the $103,254.11 debt just

Woman Sues For Unpaid Civil War Loan

SavvySugar — Wed, 23 Apr 2008 08:24:37 -0700

Usually stories about people suing over wasteful problems annoy me to no end, but this story isn't exactly irritating — it's just down-right bizarre! I picture 77-year-old Joan Kennedy Biddle pitching her outrageous suit to her lawyer, with the attitude that she has nothing to lose and everything to gain.

Biddle found a Civil War dated IOU from the City of Tampa to her great-grandfather, and decided that the city needs to honor its word and pay back the then $300 loan — which today would be worth about $23 million. She told NPR that she's going after the debt now because, "It's better late than never." And I'm sure millions wouldn't hurt, either. The city has some pretty strong fighting words working for it, like the fact that the loan was payable in now non-existent Confederate dollars.

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Maxed Out: Expensive Bad Luck

SavvySugar — Mon, 21 Apr 2008 09:43:25 -0700

This episode of Maxed Out features Jen and Jay, who are all too familiar with the old saying when it rains it pours — for them, a down-pour of bad luck has left them $67,000 in debt on top of their mortgage. It started with the sewage filled basement they discovered after closing on their first home, which was followed by lost jobs and a car crash that required heavy repairs. All the while, Jen was pregnant with their child, which added both happiness and additional financial stress to their already strained state. Both of them have decent paying jobs but are overwhelmed with their heavy debt and can't make ends meet each month. To see how financial guru Alison Griffiths helps the couple focus on fixing their finances instead of letting their unlucky past get the best of them just

Ask Savvy: I Can't Pay the IRS in Full, What Should I Do?

SavvySugar — Tue, 15 Apr 2008 08:02:57 -0700

Dear Savvy,

Yesterday I got a notice that I owe the IRS for a 2-year-old tax error. The amount is more than I have and I have only one option of paying it and that is to make payments. I called the IRS and they said that I could make payments for up to 60 months at 6 percent interest and there is a $105 dollar fee. The other option I have is to send them the entire amount owed with a check I received from a credit card I have. The fee for that is $75 and 5.9 percent interest. Just looking at the numbers it makes the most sense to put it on the credit card, however I am trying to get my credit score up. My question is: Does owing the IRS make your credit score decrease? If it does, then I might as well pay them with the credit card check since it would save me a few bucks. However, if the IRS doesn't make the FICO score decrease, I will just pay them and not use the credit line at all on the credit card.

To see my answer with information about convenience checks and unpaid income taxes just

How Often Credit Scores Are Updated

SavvySugar — Fri, 11 Apr 2008 12:54:38 -0700

Many of you have been diligently paying off your credit cards, and you've been getting a little antsy about when your hard work will be reflected by your credit scores. Since it's not free to get your credit score you don't want to be wasting your money checking it every other week — that's money you could use towards paying down your debt, and there's nothing I hate more than being counterproductive! To see how often you can check you score without it being a waste of time and money just

Maxed Out: Engaged to be Married, But Wedded in Debt

SavvySugar — Mon, 07 Apr 2008 14:36:10 -0700

Since we just finished up Engagement Week here on the Sugar Network, this episode of Maxed Out especially stood out to me. It featured Valerie and Jason, an engaged couple in their 20s whose existing combined debt and additional wedding debt was making them frantic. They say that their goal is to start their marriage off on the right foot, but they're pushing themselves even further into debt with a $25,000 wedding and no budget to speak of — Jason says they're winging the wedding expenses and hoping that their guests will be generous with cash gifts. To see how financial guru Allison Griffiths helps the couple overcome their money-related stresses and live happily-ever-after just

How Money Are You: Good Debt vs. Bad Debt

SavvySugar — Mon, 31 Mar 2008 11:34:05 -0700

While we're usually talking about the importance of getting rid of debt, there's some kinds of debt that are looked upon more favorably than others. They're typically divided into two categories, good debt and bad debt. If you're looking at your overall financial situation, it's best to pay off the bad debt and then tackle the good. Take the quiz to see if you know what falls in to each category.

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