A Guest Post from my friend Len -

It should be no surprise to anyone that the housing market is not in the best of health. Both those looking to buy and looking to sell are experiencing difficulty as the market disallows people to sell their houses at the needed prices, whilst first-time buyers are struggling to gather the funds.

During his weekly address, President Obama suggested that the economy as a whole is improving, and he highlighted several of his achievements during this address. These included a creation of seven million jobs, shrinking deficits and a slowing of health care prices, alongside “improvements” in the housing market.

On the up?

These suggestions would imply that the economy is steadily improving, but that’s not necessarily the case. The figures showing an increase in housing growth can be attributed to private equity firms, which are purchasing foreclosed houses en masse.

This then has a knock-on effect onto first-time buyers; the house prices in these bought-out areas rises dramatically, pushing surrounding house prices up, thus leaving first-time buyers struggling even more to save.

This trend can also be seen in India, with private equity firms buying out houses there. Unfortunately for those firms, the high housing prices in the area have not led to satisfactory returns on their investments, though given the reasonably secure economy in India, this shouldn’t pose as too much of a problem.

European market in trouble

The situation appears to be just as bleak for the European market, especially for first-time buyers who are struggling to raise the 10-20% deposit needed for a mortgage. However, there is a promise of better things in store thanks to a new government scheme in the UK which will offer first-time buyers chances to afford a mortgage.

The scheme has currently seen some levels of success which would suggest the UK housing market is slowly starting to pick up, but many first-time buyers are still hesitant about applying for mortgages. Totally Money has provided a guide for those who are looking for the best options when buying, which is a step towards helping buyers gain confidence.

One of the very few things that the vast majority of Americans have in common is that most of us have credit card debt! Exactly how much credit card debt, who knows? I’ve seen estimates as low as around $7,000.00 per household and as high as $15,000.00 per household. My guess is that it’s somewhere between. So, let’s say the average household has $10,000.00 worth of credit card debt, that’s a lot to pay back!

The fact that most of us have overwhelming amounts of credit card debt leads many of us to look for a great way to get some help. But, when we search for ways to get out of debt, all we find is a bunch of cool ways to save a lot of money and…oh yea…they hurt your credit score! But, is there any way to become completely debt free without harming your credit score? Of course there is!

Debt Really Isn’t That Difficult

The first thing that you need to know is, although finance guru’s make it seem like debt is a huge mountain to climb with all kinds of twists, turns and obstacles to tackle, it’s not. Debt is very simple, it’s just debt! There are only a few things that you need to know to really come up with your own, great debt relief plan. Here they are…

Over 80% Of Consumers Use Estimations To Live On Mental Budgets – One of the biggest problems that consumers face when paying off debt is, they never know exactly how much money they will be able to pay next month. Not being able to come up with a consistent monthly payment leads consumers to just paying the minimum and keeping them in debt for years and years to come. The first thing that any debt relief program should consist of is an accurate budget spreadsheet! You can make yours free on Google Drive!

It’s Possible To Negotiate Cost With Lenders – Lenders are willing to negotiate in times that require it. For instance, if they feel like they are going to lose your business, they may be willing to negotiate your interest rate. Not to mention, your interest rate will account for the vast majority of fees you will pay for your credit card. Also, in times when lenders feel as though they must negotiate the principle balance or they may never see the money, credit card companies are generally willing to negotiate the balance. Keep in mind, balance negotiations will harm your credit score. That being said, there are a few things you really need to know about these types of negotiations, so, if you want to do this, please read…How To Negotiate With Credit Card Companies.

Balance Transfer Credit Cards Are Available For Those With Good Credit – If your lender isn’t willing to negotiate with you, you may be able to qualify for a balance transfer credit card. With these cards, you can transfer your debt to an account with a lower promotional and long term interest rate. However, when taking advantage of balance transfers, always think of transfer fees and long term rates. In my experience, I’ve noticed that many people skip over these crucial factors and end up kicking themselves for it later!

Your Highest Interest Rate Debt Is Your Most Important Debt – No matter how much you owe total on each of your debts, your highest interest rate debt is going to cost you the most per dollar to borrow. That being said, you should always focus on your highest interest rate first and use the funds that become available once it is paid off to move to your next highest interest rate debt.

Lets Put It All Together

OK, now we have all the pieces, let’s make a plan. Start by making a budget spreadsheet. If your not sure of how to do this, read…How To Make The Ultimate Budget Spreadsheet. Next, use your spreadsheet to organize your debts from highest interest rate to lowest and start calling to negotiate interest rates, or balances in extreme cases. If your lender isn’t willing to negotiate rates, consider balance transfer credit cards. Once you’ve got your rates to where you want them, create a plan that attacks the highest interest rate first leading to less cost overall!

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance journalist. Join the conversation with Joshua on facebook!

Ninja explained why, “I might take out a $30,000 401k loan just to piss some of you off.” Not me. Time would tell if this was a good move or not. You see, he can borrow at 1.75% which is a bit of a savings from the 4% mortgage, but far less than the long term 10% market return (or 12% if you are a fan of the David.)

At Money Crashers, 7 Legitimate Reasons to Delay Saving for Retirement, an interesting spin on why not saving isn’t always irresponsible. In fact, sometimes it’s the wise this to do.

Will Social Security be gone before I retire? Now, that’s the question. And the answer is part of a full discussion at Five Cent Nickel. A good read that may help put your mind at ease.

And last, Finally, PROOF That Costco Prices Are Cheapest. I’ve written now and then about Costco, but now, my friend at The Wealthy Turtle offers data, hard proof that Costco is a winner.

Happy Father’s Day!

This week the Supreme Court used the line “You didn’t build that” in a way that’s not likely to get taken out of context. In effect, that’s what they told one of the big biotech firms trying to patent a gene.

We start with a quiz at Business Insider. 5 questions, multiple choice, no tough math. See If You Can Ace Personal Finance Quiz That 86% Of Americans Could Not. The article went on to say that A new survey by the FINRA Investor Education Foundation found that 75% of U.S. adults say they’re pros at managing their finances. In the end, we all think we are above average, but, no offense, only half are. For the record, I did get all five correct. In the interest of full disclosure, I am no long in the top half of drivers. I was, but somewhere in my 40′s, that ship sailed.

At the Empowered Dollar, Stephanie shared her Super Nerdy Award-Winning Poetry: Ode to the Roth IRA. I have to say, this was the best Roth IRA poem I’ve read this year. And it may inspire you, to open a Roth, write poetry, or both.

Remember about a year or so ago, Suze Orman had some nasty tweets after the Personal Finance Blogging community criticized her expensive debit card?  Well, this week was Dave Ramsey’s turn. Dave was kind enough to tweet “I help more people in 10 min. than all of you combined in your ENTIRE lives.” This was in response to people questioning his claim the market will return 12% long term. An article at Motley Fool said it best – Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey, and fellow blogger Phil Taylor wrote The Financial Planning Community Wants a Real Conversation with Dave Ramsey. In April I wrote Average Return vs Compound Annual Growth, and it seems that’s what Dave is missing.

Evan at My Journey to Millions has Another Reason I Hate my 401(k). The fees are high, his large cap fund sporting a 1.21% fee, ouch, but Evan also shared that even the cash option costs .95% per year. He does get a match of up to 6% of his income, but I hope he doesn’t deposit a penny more.

At Consumerism Commentary, one of the blogs I’ve followed the longest, Luke Landes wrote 5 Tips for Protecting Your Windfalls. Amazing how many people are worse off than before they came into some big money.

Is 4% the Correct Safe Withdrawal Rate at Retirement?  That’s the question, and Jason Hull offers an analysis you shouldn’t miss at Hull Financial Planning. Whatever your age, this withdrawal rate is important, it’s the key to calculating your number. The amount you’ll need for a lifetime of withdrawals in retirement.

Northern Cheapskate told us When A Gift Card Isn’t Really a Gift. But if anyone ever send me a gift card to Home Depot, I’m happy to get it.

Last, at my companion sire, RothMania, my take on what I’ve dubbed Roth 401(k) Double Jeopardy. I describe how I view the fees in 401(k) accounts as being even more harsh when they are charged against a Roth 401(k). It make take a second read to get my point, but depending on your age and how you’re investing, it’s worth understanding this quirk.

Have the males of the human species outlived their usefulness? A bit of a scary thought, I suppose. But a break from the the scandals that have filled the newsfeeds this past week.

You can see in the picture, it was $20 vs $32 (I round up a cent). The small bottle cost $26.67 per liter and the larger bottle, $18.29 per liter, or nearly 1/3 less. The other way I’m looking at this is that I get a full liter more for $12 more when bumping to the next size. Sort of like if there were a sale, buy one for $20 get a second one for $9.

• Do you pay close attention to the cost difference between two sizes of the same item?
• Would you have stuck with the smaller bottle in this situation?
• Where do you draw the line? Is it by price or the utility of the item? (Ask me about the gallon of mustard I once bought)
• If it’s a perishable, how long do you stand there and calculate whether you’ll finish it before it spoils?

A few of the statistics from this report caught my attention:

• Global Wealth ended 2012 at $135.5 trillion.
• 39% of this wealth was held by 1% of all households.
• The number of millionaire households rose to 13.8 million

Let’s look at the implication of doing a bit of math on these numbers.

• The remaining 61% of wealth is $82.6 trillion
• Divided over a world population, this is an average $12,000 per person for the rest of us.
• Mean Wealth in the world is about $3600.
• Total US wealth is $43 trillion, 32% of global wealth, with less than 5% of the population.
• This divides down to an average $136K for each person in the US, but even this is concentrated at the top so most have much less.

An interesting report to me. It helps put into perspective how rich the US is when compared to the rest of the world, and within the US how wealth is concentrated among the select few. How you pondered these numbers? Were you surprised, or was it what you’d expect?

Warning signs are everywhere with some so downright hilarious that the seriousness of the issue is lost in the hilarity. For example, “Not intended for human consumption” was a warning on a bottle of bubble bath. Or this one found on the packaging for a set of earplugs, “These ear plugs are nontoxic but may interfere with breathing, if caught in windpipe.” Or this warning on a hairdryer, “Warning: Do not use while taking a shower.” Well, duh!

While we may get a little chuckle from these seemingly silly warnings, their intent to protect is serious business. Consider the consequences of simply ignoring any of these warnings. In the same way, signs that point to poorly managed finances have dire consequences, if you don’t take them seriously.

Ignoring the Wisdom of Others
One reason some people are surprised to find themselves in financial trouble is that they were indifferent to the clues that were clearly on display. Inexperience and arrogance often go hand-in-hand when troubles are left unresolved. Wise advice is considered irrelevant or out-dated for the situation. Those who step up to point out clues to trouble ahead might include family and friends who have more experience to draw from. They offer their help so that you might avoid pitfalls that they may have gone through – perhaps because they ignored the signs.

The right attitude about money is vital to establishing and maintaining excellent financial management skills. If you still rely on parents or friends to support your way of living, you need to resolve your dependency or miss wonderful opportunities for growth and personal success. Money is a means to an end and should be thought of as a tool to be used to build and live a sustainable life.

To write about all of the warning signs of a poorly managed financial lifestyle would fill a book. For our purposes and with word count restraints in place, the most common warning signs are included in this checklist.

• Has Little or No Savings: The target to shoot for is a minimum of six months worth of savings to cover any unexpected job loss or emergency. Without this safety net, you’ll be inviting disaster. A recent survey shows that nearly half of Americans have less than $500 in the bank.
• Doesn’t follow a Budget: Anything well managed incorporates a plan to reach their goals; and so it goes with finances. Without one there’s no direction and will be easy to get off track.
• Insufficient Income/Poor Job Performance/Outdated Job Skills: These issues are interrelated with one impacting the other two and vise versa. Begin by learning a new skill and being more responsible on the job and the income will resolve over time with a new job or a pay raise.
• Uses Payday Loans: Using one of these is an act of self-imposed desperation. Not only are you borrowing on your own future income, you’ll be paying interest to someone else to borrow your own money.
• 5+ Year Car Loan: Pushing an auto loan beyond 60 months is a warning sign that the loan is too much to handle in your current situation.
• Denied a Loan or a Credit Card: If lenders consider you too high risk to approve additional credit, this is a warning sign that you already have too much debt in relation to your income.
• Uncontrolled Credit Card Spending: Credit cards should never be used as supplementary income. Never use one to purchase everyday necessities – do without until cash is available. Eventually it all needs to be paid back to the lenders, a bumpy road for sure when you’re overwhelmed by credit card debt on multiple accounts.
• Agreeing to Debt Consolidation while Continuing to Use Credit: This strategy will backfire, as you will basically be standing still while incorporating a plan that would normally help lower debt. Consolidating all your debt into one account can be a great way to dig your way out of debt, but not if you keep using your available credit.

Personal reasons unrelated to finance that may be triggers to future financial problems, include a lack of or insufficient insurance coverage on your health, car and home. Disputes and disagreements between couples about money are the most common relationship problem. Sometimes one partner lies or hides the truth about how they’re spending the couple’s money. Issues like these need to be addressed and worked on until a joint agreement has been reached.

By keeping alert to the warning signs of poor financial management and correcting your course when one crops up will free up funds to invest in college for the kids or to pad your investments set aside to secure a carefree financial future for your retirement years.

Identifying the warning signs is the first step; the second is equally important. You need to take action to resolve the issues to protect your financial integrity and future in the best interest of yourself and your loved ones.

About The Author: Noreen Ruth is a staff writer for www.asapcreditcard.com, a site that provides credit tips, news, credit card comparisons and reviews. She is interested in educating consumers about using credit responsibly and taking actions that will affect their ability to borrow the money they may need in the future.

Still on the IRA topic, at 20 Something Finance, G.E. Miller wrote Roth vs. Traditional Retirement Accounts: Why Roths are Not Always the Clear Winner. You see, there’s a bit of forecasting required, what bracket are you in now, and what might it be in the future? Those who retire with all their money in a Roth IRA have left money on the table, or worse, in Uncle Sam’s pocket.

Barb Friedberg asked (and answered) What Happens When Fed Exits From Stimulus? Yes, that’s the million dollar question. No, I’m not going to give you the punchline, just tell you that Barb offers a great discussion on the topic, tell her I sent you.

The discussion surround Apple and its offshore cash hoard seems to be fading in the news. One last article on the topic from Robert D Flach, the Wandering Tax Pro. Robert says Don’t Blame Apple, and agrees that they are simply following good business practice. If you have a congressman who is your friend, neighbor, or just in your pocket, why not tell them to suggest that the fault isn’t with Apple, but with our tax code, It’s congress’ job to fix this.

Andy Hough also guest posted at Tight Fisted Miser. He was still stretching, but this time he wrote How to Stretch your 5% cash back. A clever strategy to get 5% on more than just the select categories your card offers that quarter.

We’ll close this week’s roundup with William Cowie’s guest post at Five Cent Nickel – What do you do with your windfalls? A great question, as I often observe how people will treat their tax refund as a windfall, yet, it’s money out of their check every pay period. Check out Will’s thoughts on windfalls.

I’ve been tinkering a bit with a PB blogger feed. A page of the last couple posts that bloggers I follow have written. So far My Favorite PF Bloggers  is how I follow the PF bloggers I like best.