The telling chill in the air means there's no denying we're in the final stretch of 2008. There may only be eight weeks until the ball drops, but there's a whole lot packed in to two months time and we must start preparing. November has me thinking about how to stay on track with my finances when Thanksgiving dinner, traveling, gift buying, and a rising heating bill are happening at once. Check out my must have tips for this month!
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.
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?
Teen Vogue is well aware that retail is in big trouble as reflected by its new concept for the 2008 holiday season. Retailers are thirsty for teenage girls to spend like they used to, so Teen Vogue is taking advertising for the demographic to the next level. This is one campaign that doesn't involve the magazine's go-to heartthrob Zac Efron and actually leaves out boys altogether — the magazine has tried to develop the ultimate girls spot in hopes of loosening up wallets.
The magazine is forming a presence in malls with temporary pop-up stores, formally called the Teen Vogue Haute Spot. The store won't sell anything but hopes to inspire the urge to splurge by providing makeup and perfume stations, racks of clothing for trying on, informal modeling, and snacks. The stores will be staffed with stylists who are there to give advice and ultimately escort the girls to stores in the mall where they can buy the products they've fallen in love with.
Aside from the holiday season stores open from November 28 through December 26, Teen Vogue plans on opening pop-up stores for prom season and back-to-school shopping. Do you think Teen Vogue is on to something, or is their hands-on marketing scheme a dead end in this economy?
Those who celebrate Halloween often spend the day after recovering from two types of hangovers, one of them being from sugary sweets. You might not want to think about candy right now, but there are always big discounts on Halloween treats and decorations starting Nov. 1. Will you be scooping up any of these holiday items on sale?
It's time to test how much Savvy knowledge you retained this week. Find out how closely you've been paying attention when you take this quiz. Not feeling confident? Just do a quick review — all of the answers can be found in this week's posts.
Milly
Katia Lombardo
Marc Jacobs