SavvySugar

YouTube Debtor's Revolt: Too Far or Totally Justified?

SavvySugar — Wed, 30 Sep 2009 09:00:33 -0700

In the wake of the recession, it's become increasingly common for credit card companies to jack up interest rates - in some cases, without due cause. Typically, outraged customers seek an explanation via customer service representative – but one disgruntled card holder took her case to YouTube

In the now viral video, aptly titled Debtor's Revolt Begins Now, B of A customer, Ann Minch launches a heated attack on the bank, claiming that her interest rate was raised from 12.99 percent to a whopping 30 percent, despite diligent and timely payments. Her attempts to negotiate with the branch, where she has been a customer for 14 years, were dismissed - until her now infamous rant gained some serious media attention, and was finally seen by one of the Bank's executives, who re-adjusted her interest to its original rate.

Since it debuted on Sept. 8, Minch's cyber assault has been streamed more than 350,000 times and attracted over 5,000 comments - some praising her as a crusader, others condemning the outspoken debtor. What do you think?

I'm Asking: What's the Interest Rate on Your Most-Used Card?

SavvySugar — Wed, 22 Apr 2009 11:00:32 -0700

All credit card rates are not created equally, whether it's due to your credit history, the carrier's unwillingness to budge on rates, your apprehension to ask for a lower one, etc. Most of you have one to three credit cards, and even among those your rates may vary. What's the interest rate on the credit card you use most?

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Rate Reduction on Variable Student Loans This July

SavvySugar — Thu, 26 Jun 2008 15:37:39 -0700

Forking over your monthly student loan payment is surely something that makes you sigh with irritation, but here's some news that may make those times of the month less brutal.

If you've already consolidated your student loans and haven't added any new ones then you're not eligible for a rate reduction, but if you haven't yet consolidated consider marking July 1 on your calendar. Find out what rates may be available as of the first when you read more.

Here's the deal: If you have federal variable-rate student loans that were issued before July 1, 2006 and have not consolidated, you are eligible to lock in rates of 3.62 percent to 4.25 percent on Stafford Loans and 5.13 percent on PLUS Loans for graduate students and parents. This doesn't apply to students still in school, and if you're in your six-month grace period you can lock in the lowest rate for loans from your first two years of school.

The lowest rate is about three percentage points lower than the current federal rates. To find out more about consolidating your federal variable-rate loans (as of July 1, 2008) visit the US Department of Education.

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Interest Rate Cut Not the Best News For Your Savings Account

SavvySugar — Thu, 01 May 2008 04:27:04 -0700

Yesterday the Federal Reserve announced its seventh interest rate cut since September, lowering the federal funds rate by a quarter-point to 2 percent. Interest rates are now at their lowest since 2004 and reflect the Fed's ongoing concern about a weakening economy. The prime lending rate that affects consumers and businesses dropped correspondingly, which could have a positive effect on some credit cards and loans. Also, homeowners with adjustable-rate mortgages should have benefited from the seven rate cuts as rates would have been reduced as the Fed has made their moves.

The rate reductions are bad news for savers, because the interest rates available on savings accounts are lower than they used to be. The average rates barely keep up with the country's 4 percent inflation, which essentially means you're losing money by saving. But don't take that too literally and abandon your savings efforts - shop around for the best interest rates, and keep in mind that earning any interest is better than earning no interest.

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Better to Put Your Money Under Your Mattress?

SavvySugar — Mon, 07 Apr 2008 06:50:48 -0700

According to the American Bankers Association, the average interest rate on savings accounts has dropped to just .47 percent. The Federal Reserve interest rate cuts may help those homeowners with adjustable-rate mortgages to pay lower interest rates, but the rates on savings accounts have taken a hit as the Fed has taken its actions.

The New York Post came up with this eye-opening example that makes clear just how ineffective some savings accounts can be for someone trying to save. Because ATM fees have continued to increase, making just one out-of-network ATM transaction each month on a $7,500 account would probably cause you to pay more in fees than you're making in interest. And if your account has a lower balance you'd be coming out even further in the red.

Shop around for better interest rates and banks that absorb out-of-network ATM fees. It just doesn't make sense to lose money by simply using your bank account.

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Savvy ATM: What's Considered a Good Credit Score?

SavvySugar — Fri, 28 Mar 2008 04:31:53 -0700

When Fair Isaac introduces its new formula for calculating credit scores this Spring, the new calculations are said to do a better job at sorting good borrowers from the risky ones. Having a high FICO score can save you thousands of dollars every year, because those with highest scores are rewarded with the lowest interest rates. But what type of score determines the good from the bad, anyway? To find out just read more

The highest possible score is 850, while the lowest possible score is 300.
Most lenders require a score of at least 760 to get the best rates.
After 760, mortgage rates increase according to these score brackets: 700-759, 660-699, 620-659, 580-619, 500-579.
Interest rates increase significantly with a score below 620, because at that point lenders consider you to be in the subprime category.

The FICO website gives this example: If you borrow $300k and have a 30-year fixed-rate mortgage, you'd save $600 each month / $7,000 each year / $210,000 over the life of the loan with a credit score of 760 versus 579. Pretty powerful when the numbers are broken down like that.

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News Flash: Fed Cuts Interest Rate Again

SavvySugar — Tue, 18 Mar 2008 12:35:37 -0700

The Federal Reserve cut its federal funds rate this afternoon to 2.25 percent, making its sixth cut in the last six months. A weakening labor market, slowdown in consumer spending, a loss of confidence and crisis in financial markets, and a tight credit market were reasons the Fed used to support this most recent cut. Acknowledging the issues of inflationary pressures alongside a slowing economy, they stated "Uncertainty about the inflation outlook has increased. It will be necessary to continue to monitor inflation developments carefully.”

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News Flash: Fed Makes Emergency Interest Rate Cut

SavvySugar — Mon, 17 Mar 2008 13:03:40 -0700

In an attempt to avoid a financial market meltdown in the US, the Federal Reserve made an emergency rate cut on Sunday. The quarter percentage point cut applies to the discount lending rate to financial institutions, bringing the short-term lending rate from 3.5 percent to 3.25 percent. This cut only covers short-term loans that banks receive from the Federal Reserve and doesn't include loans to individual borrowers. This move called upon a Depression-era clause in the Federal Reserve Act that waives the ban on the Fed extending loans to nonbanks, as the rate cuts are extended to securities dealers, too. Federal Reserve Chairman Ben Bernanke said, "These steps will provide financial institutions with greater assurance of access to funds."

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Money Tip: Get Your Credit Card Rate Lowered

SavvySugar — Fri, 14 Mar 2008 10:52:17 -0700

A mall experiment by CBC News suggests that all it takes to get your credit card rate lowered is a phone call and a question. They approached 10 mall shoppers and had them dial their credit card company, and told the shoppers to say this: "I think I've been a good customer. I'd like to stay with you, but I really want you to lower the rate on my card. Can you help me?" They were advised to ask for a supervisor and say the same thing if the customer service rep told them no. Six of the 10 were able to get their rates reduced! Three of the shoppers quoted in the article report they were offered new rates that are about half as much as their old ones. You have nothing to lose by calling, so why not take five minutes and try?

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News Flash: On a Euro High

SavvySugar — Thu, 28 Feb 2008 06:11:21 -0800

Yesterday, the euro's value hit its highest point against the dollar since it was introduced in 1999. The currency is valued at $1.5057 and analysts say it could move even higher than its current record. The euro's escalation is attributed to negative economic reports from the U.S. including the lowest consumer confidence levels since 2003 and higher wholesale inflation. There's speculation that the Fed may cut interest rates lower even after its big cuts in January - the cuts are intended to fuel the economy but could also have the unwanted effect of pushing the dollar's value lower.

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