Say Goodbye To Credit Card Debt...Forever!!

Don't Quit Poem Movie

2012-01-21T10:22:00.000-08:00

Don't Quit Poem Movie: If I had to guess, I would bet you are facing your fair share of challenges and obstacles in your life... I know I am. When things go wrong, and they sometimes will... how will you choose to respond? That is what this short movie is all about. Be inspired by these words of wisdom if you are thinking of quitting.

My First Television Appearance!

2012-01-19T17:56:00.001-08:00

Earlier today (Thursday, January 19), I appeared on the show "PA Live!" on WBRE-TV in Wilkes-Barre, Pennsylvania. I spoke about my book "Master The Card: Say Goodbye to Credit Card Debt...Forever!"

I appeared on a five to seven minute segment. Please watch it by clicking the following link:

www.pahomepage.com/palive

Look for the January 19 program. The show is also on my Facebook page, Linked-In, and Twitter.

As always, find out more about the book and Paretta Enterprises be going to www.joeparetta.com

Beware Black Friday Spending!

2011-11-22T07:49:00.000-08:00

I wish everybody a Happy and Healthy Thanksgiving! I hope enjoy the day with family and friends.....and, of course, food.

We all know that "the day after" is Black Friday. This is a "make or break" day for many stores during the holiday season. However, this does NOT have to be a "make or break" day for your and your finances.

With that said, if you are going to battle the crowds this Friday, please bring a set amount of money with you and do not go beyond amount. Also, if you know that you are frequently tempted to use credit cards or department store cards, leave them at home. In the long run, you will be happy that you did, especially if you tend to carry balances from month to month.

The cash back and bonus points rarely make up for all the money spent and interest charges incurred. To me, it's not worth it.

Stay tuned for more!

FTC Closes Down Debt Collection Agency

2011-11-02T14:14:00.000-07:00

As an advocate for consumers, I am always happy to see the government do something to prevent abuse of power. That said, the Federal Trade Commission closed down Rincom Debt Management last week, claiming that the agency made "bogus threats" against consumers. The FTC stated that Rincon threats included telling consumers that they had been sued and even could be arrested for debts...even those that they did NOT owe.

These are considered "unfair or illegal debt collection practices" (obviously) and it's refreshing to see the FTC making agencies like Rincon "play by the rules."

I'm BAAAAACK!!!

2011-10-18T08:49:00.000-07:00

Hi Everyone,

It has been WAY TOO LONG since I've posted something on my blog. Now, I could use the excuse that I have been busy promoting my book, "Master The Card: Say Goodbye to Credit Card Debt...Forever!", actively building a following on my website, www.joeparetta.com, or assiduously grading essays and instructing students...and that's all true!!

But now, I am focusing on sharing my knowledge about getting out of credit card debt and also providing tips and other infomration that you will find valuable on your own voyage away from what I call those "plastic hand grenades" (credit cards).

So, please stay tuned. There's MUCH more to come!

Credit Card Debt: Up in December

2011-02-09T16:38:00.000-08:00

The Federal Reserve announced that for the first time since August 2008, just two months before the "official crash" of the United States economy, revolving debt on credit cards increased. The Fed believes this was largely due to increased spending during December for the holiday season.

Whatever the reason, this is not a good sign for people who carry balances on their credit cards every month. With the average hosuehold credit card balance around $9,000 (and that is with many people foregoing their credit cards over the last two years), increased card use is not going to solve the problem.

Whether people think that the economy is getting better or they are simply tired of not buying, one wonders if this news is just the beginning of a trend which will send many American consumers even deeper into debt.

It's time to change the way we think about spending and especially about credit card debt.

Get my new book "Master The Card: Say Goodbye to Credit Card Debt...Forever!"
For more information, go to www.joeparetta.com and click the "Purchase Book" link.

My Interview With The Debt Free Divas

2011-02-07T17:20:00.000-08:00

Last Thursday (February 4), I was the guest on an internet radio show called "The Debt Free Divas." Toni and Jill (The Debt Free Divas) and I spoke about my new book, "Master The Card: Say Goodbye to Credit Card Debt...Forever"

We focused on the time in my life when I had several thousands of dollars of credit card debt, what made me start to take inventory of my financial life, and how I climbed out of debt, little by little.

We also spoke about how great life becomes when one no longer has the albatross of credit card debt "around our necks" and weighing us down. We talked about many of the dreams that we can pursue when debt is out of the picture.

Without giving away more of the interview, I invite you to listen to the show.
The interview is archived at the Debt Free Divas website. Click on the link here - www.blogtalkradio.com/debtfreedivas

Listen to the Debt Free Divas every Thursday at 11:30am Central and 12:30pm Eastern time.

Lastly, visit my website at www.joeparetta.com for information on purchasing the book and to see all the services offered.

"Master The Card: Say Goodbye to Credit Card Debt...Forever!" is Now Available!

2010-12-30T15:52:00.000-08:00

Balboa Press recently published my new book, "Master The Card: Say Goodbye to Credit Card Debt...Forever!"

Go to any of the following websites to purchase:

www.balboapress.com
www.amazon.com
www.barnesandnoble.com
www.borders.com

Received Copy of My Book From The Publisher!

2010-12-07T16:48:00.000-08:00

Today, Balboa Press sent me a paperback copy of my new book, "Master The Card: Say Goodbye To Credit Card Debt...Forever!"

IT LOOKS GREAT!!

Americans Are Paying Down Their Credit Card Debt!

2010-08-26T06:29:00.000-07:00

At least for now. And that's a good thing. With so many people unemployed or underemployed, it can be hard to "find" money to reduce debt. But many people are realizing that they must stay away from their credit cards during these tough economic times.

TransUnion states that during the second quarter of 2010, Americans reduced their average credit card debt to $4,951, which TU says is "down 13.4%" from the first quarter. TransUnion also states that delinquencies are down, too.

Something to think about: The economy will turn around at some point. When? We don't know. However, when that time comes, we should maintain the good habits regarding credit cards that we are now establishing during these recessionary times.

My book will focus on some of these practices and mindsets. I will keep you posted regarding its publication date. Stay Tuned!!

New Book is Coming!!

2010-07-23T15:39:00.000-07:00

I am very excited to announce that my first book will be published very soon! It will incorporate much of what has been addressed in this blog....and more!

Stay tuned for more details!

Bank of America Gets Rid of Its Overdraft Fees on Debit Cards

2010-03-18T16:43:00.001-07:00

Some days ago, in an attempt at improving its relationship with the general public, Bank of America announced it will stop charging overdraft fees on purchases made with it debit card. This will be effective beginning this summer. Bank of America and all other banks will now need to get customer permission to before providing overdraft protection on purchases made with debit cards and on all A.T.M. withdrawals, thanks largely to the new federal CARD Act legislation.

Over the years, banks thrived on these overdraft fees. According to an article in the "New York Times," "Debit purchases account for roughly 60 percent of overdrafts at Bank of America, the nation's largest issuer of debit cards." The article also states that other banks will probably follow suit.

The article continues that "93 percent of the fees are generated by just 14 percent of the customers who exceed their balances (on their debit cards) five times or more a year."

As I've stated within this blog, on other sites, and to my audiences, there is no substitute for personal responsibility. While the banks have taken advantage of the consumers, they've done so largely because we'v allowed them to do so. The banks "play on" our ignorance and laziness and so many of us just act like victims.

Yes, the new federal regulations should empower the public, but this is no time to get complacent. In fact, it is time to learn all we can about our rights and responsibilities as consumers. REMEMBER - the banks work for us; we should not work for them.

Something Worth Watching!

2010-02-23T11:19:00.001-08:00

I am always "on the lookout" for people who want to help others become debt free. I "found" one such person yesterday. Her name is Joyce Meyer. I have been watching her television programs for many years, but yesterday, she addressed the topic of debt, and in particular, credit card dbet.

I recommend that everyone goes to her website - www.joycemeyer.org - and watch the program there.

And as always, thanks so much for reading my blog.

Comments are always welcome!

Joe

Despite CARD Act, Don't Trust The Banks and Card Issuers

2010-02-19T13:58:00.000-08:00

The BIG DAY is almost here! February 22 is the date when the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act takes full effect. In a previous post, I wrote about many of the protections that will be in place to help the consumer. But as with most things in life, nothing is foolproof. And when it comes to money, especially credit cards, you can count on some banks and credit cards issuers to still try to "pull a fast one" on unsuspecting people, who may naiively think that because the CARD Act is now law, these banks and issuers will "play noice" all of a sudden. Don't fall for it! Be on guard.

I read a very informative article earlier today titled "Banks and Card Issuers Find Clever Ways Around CARD Act Rules." It was written by Tracy Coenen, a fraud examiner and forensic accountant who investigates corporate fraud and consumer scams. The article appears on the website - www.dailyfinance.com.

Coenen writes that "there is plenty of new and creative ways to get money out of consumers without violating (the CARD Act)." These include the "$1 statement fee," "Consumer consent to over the limit fees," "Converting a fixed rate to a variable rate," and "rate rebates." These and more are covered in detail in Coenen's post. So, go to the Daily Finance website and read the article in its entirety.

Coenen also states something that I have been writing and speaking about fior a long time: namely, "Don't be passive about your credit cards." I have an entire section on this in my upcoming book. Stay tuned for more!

Here Come Those Credit Card Offers Again!

2010-02-17T17:27:00.000-08:00

According to the market research firm, Synovate, credit card issuers are increasing their mailings to the American public. One issuer, Capital One, mailed 13 million offers in the fourth quarter of 2009. Capital One had, in the past, mailed millions of offers to subprime (big risk) borrowers.

ADVICE - If you get a credit card offer, tear it up! The only thing you can do with a credit card is debt.

CARD Takes Effect on February 22

2010-02-14T13:34:00.000-08:00

Hi All,

Just a reminder that the new CARD Act legislation goes into full effect next week, on February 22. I suggest that everyone goes on-line and downloads the legislation. It could be the most important information that you have to enhance your financial life, especially if you are in debt to credit cards and tend to carry balances month to month.

Passing+Along+Good+Credit+Lessons+-+AOL+Real+Estate

2009-11-21T13:46:00.000-08:00

Passing+Along+Good+Credit+Lessons+-+AOL+Real+Estate

Beware of Bank of America

2009-10-14T09:34:00.000-07:00

"USA Today" reports in today's edition that Bank of America will start charging an annual fee to some of its credit card customers in 2010. The fee will be $29.

Apparently, this fee will be "tested on 1% of its credit card accounts," this according to a spokeswoman for the company. The fee will be applied every February.

To make matters worse, "USA Today" states that even customers "in good standing" face the potential of being charged an annual fee. For those of you who don't know, credit card companies consider those of us who pay "on time" to be "deadbeats." In other words, they can't take any extra money from us on a monthly basis. So evidentally, banks like Bank of America plan to go this route, especially since new credit card legislation, which takes full effect in February, limits how banks levy charges.

So BEWARE OF BANK OF AMERICA!

'Tis The Season

2009-10-13T14:54:00.000-07:00

Hi Everyone!

I'm back and ready to blog!! I'm looking forward to my upcoming seminars about avoiding credit card debt. And now that we are approaching mid-October, it's not too early to talk about holiday spending.

With so many people burdened by the economy, gift giving during the upcoming holiday season may add to their stress levels.........But it DOESN'T HAVE TO! Keep a couple of things in mind -

1) If you haven't already started to put some money aside for holiday spending, that's ok. You can start now. Now, yes, I did just write that people are burdened by the economy, so you might be asking "Why is he talking about saving for the holidays when bill paying is tough enough?"
Well, being a student of "human nature" as much as I am of credit card debt, I know that a lot of people will still spend a significant amount of money on holiday gifts, despite their current economic situation. So it's best to discipline yourself to put away a few dollars a week now for the next couple of months than to wait until December and then worry about where you are going to find the money. THAT'S when people get into real trouble...with their credit cards! They feel they have no other choice but to charge. However, if you save now, you can avoid those dreaded January and February bills.

2) If you feel that you cannot "save" money now, but you know that you are still going to spend that money, then buy those Christmas gifts NOW! At least you will get your shopping done early and you won't have to fight the crowds right before the holidays (or on "Black Friday.") This also gives you an opportunity to plan your spending instead of rushing at the end of the season and potentially overspending on items that you might not really want to by anyway, but were forced to because the "pickings were slim."

With a little bit of planning and discipline, you can have an affordable (and Happy!) holiday season. Remember - you don't have to "keep up with the Joneses." Besides, as Dave Ramsey says, "They're broke too!"

Suze Orman's Point of View

2009-08-26T11:24:00.000-07:00

Hi Everyone,

This week, I decided to feature the opinion of someone who has been in the financial industry for almost 30 years and is well-known to tv viewers and book readers. Suze Orman has a weekly show on CNBC and she has also written several books on personal finance.

Last weekend, Ms. Orman featured a segment called "Suze Orman's Debt Loyalty List."
She listed, in descending order, how she feels certain debts should be paid off.

Here is the list:

1) IRS
2) Student Loan
3) Personal Loan
4) Mortgage
5) Car Loan
6) Credit Cards

Of the credit cards, Suze said, "Credit card debt is unsecured debt." That means, the banks and credit card companies CANNOT repossess anything that you own because you are behind on your card payment. Also, they cannot seize your accounts and rarely does it get to the point where they garnish your wages.

Personally, I address this list because I want you to see that the credit card companies are
NOT the bullies that they pretend to be. They do NOT have any more power over you than you allow them to have.

Think of it this way - with the new credit card legislation that the president has signed into law and all that you are learning from this blog, YOU are the one with the POWER, not the banks and not the credit card companies.

Good job, Suze! Good job, Readers!! Stay tuned.

Some Changes to Credit Cards Effective Today

2009-08-20T12:09:00.001-07:00

Back in May, President Obama signed "The Credit Card Accountability, Responsibility and Disclosure Act of 2009" which will require the issuers of credit cards to present their rules and fees "in plain English" instead of in the convoluted legalise that they have gotten away with for so many years. In addition, they are forced to drop some of their misleading practices, such as delaying the posting of payments that arrive on time so that issuers can charge a late fee.

While the majority of the provisions don't take effect until February 22, 2010, some significant (and empowering) changes become effective today (August 20, 2009). These include that the fact that issuers must mail statements to customers at least 21 days before the payment is due. Also, issuers are required to provide 45 days notice before increasing annual percentage rates or changing terms of agreement on the account - this is a big deal! Up to now, the issuers had to provide just 15 days before these increases and changes took effect.

Not surprisingly, credit card issuers were not happy with the president's decision to help consumers and immediately tried to make financial lives tougher while they could. According to Adam Levin, chairman and co-founder of credit.com, "several card companies have been increasing fees, reducing credit limits, raising rates, boosting minimum payments and dropping customers with high balances."

Personally, I had an experience a few months ago where one of the card companies cut my available credit in half, largely because I don't use the card very often and when I do, I pay it in full. They don't like that - they call those of us who pay off our balances "deadbeats." So, I called them right away and told them that I wanted my available credit reinstated at its full amount and because I have an excellent payment history, they had no option but to do what I wanted. Basically, they did not want to risk me leaving them and going elsewhere. Hey, I may not use the card a lot, but they figured it's better that they get some money from me sometimes than no money ever!

Come mid-February of next year, the other changes in the law will take effect, namely

*If a card has a balance at varying rates, payments must go towards the higher rate first.

*If the interest rate on the card goes up, it cannot be applied to an existing balance. It can only
be applied to new purchases.

*Double cycle billing will be prohibited. In the past, companies would take the average daily
balance from both the current month and the previous month and calculate finance charges.
(DID YOU KNOW THAT?)

*Also, and I like this one A LOT, marketers cannot hawk students who are less than 21
years of age without a parent's signature of unless the card company can PROVE that
the student earns enough money to pay the bill.

These are some of the main things to be aware of. As we move closer to the full
implementation of the law on February 22, 2010, I'll keep you posted on other significant changes and happenings.

For now, my advice is to follow the tips and pointers I've provided in the posts written to date and check back weekly for more valuable advice as together we get you OUT OF CREDIT CARD DEBT!!

Protect Yourself

2009-08-19T09:46:00.000-07:00

These days, it seems that identity theft is all too common. Part of being responsible with credit cards is being aware of where they are at all times and being aware of where we are using them.

In some cases, unfortunately, identities and credit card information can be stolen, even if we have done everything possible to be protected. Such is the case with a Florida man who was just indicted (for the third time) for allegedly stealing data from over 130 million credit and debit cards. He has hacked into computer networks of stores and restaurants, such as T.J. Maxx, Marshalls, Barnes and Noble, 7-Eleven, and Dave and Buster's, among others.

It is highly advisable to check your accounts regularly, like once per week, to make sure that no illegal activities have occurred. If something unethical has happened, contact your credit cards immediately, put a freeze on your credit reports, and contact the authorities immediately.

We have to be proactive in ALL ways when it comes to our credit...and our identity.

Parents and Kids, LISTEN UP!!

2009-08-14T12:36:00.000-07:00

While this post is not exclusively about credit card debt, it does play a role in what you are about to read.

On a couple of occasions, I have addressed the problem of instant gratification, of the "I want it and I want it NOW" mentality. The main problem is that we don't develop patience nor do we establish a work ethic in order to provide for the "want." This is an issue for adults and children. To make matters worse is that undisciplined (financially) parents cannot teach constructive money habits to their kids.

Recently, Dr. Phil had what I consider to be one of his best television programs called
"How To Talk To Your Kids About Money." The primary guests were parents named Lori and Chris and their 15 year old daughter, Kati. I'll start by saying that the parents admitted that they "have trouble saying no" to their daughter and she admitted that she "likes to manipulate the situation" in order to get what she wants. This is a recipe for DISASTER!! To put it in numbers, the parents spent $27,289 in just 2 years to satisfy their daughters' materialistic desires.

The financial mess is easy to recognize. But on a deeper (rational) level, the problem is that neither the parents (especially the mother) nor the daughter take full responsibility for this situation. Lori (mother) makes excuses for this wasteful spending, claiming that Kati "makes good grades," as though As and Bs should equate to thousands of dollars. If that were true, I would have been a millionaire by the time I got out of high school. Then, ironically, Lori says that Kati "spends too much money." DUH! From whom does she get the money?!?

Dr. Phil addressed the issue directly, as he often does, when he said, "The parents are not willing to step up" and that "Overindulgence is the most insidious form of child abuse." Simply put, the parents have trained their daughter to beleive that if she simply puts her hand out, she will eventually get what she wants. I pity her future spouse, significant other, etc. This habit is hard to break.

Ultimately, it was determined that the father brings home $6,000/month (net), but by the time that the bills are paid and Kati's "stuff" is bought, there is only $240 left.

There are so many things wrong with this situation. To make matters worse, this is not an isolated situation. There are MANY American families that are living in debt (largely credit card) because parents cannot say NO to their kids. And it's really NOT that hard....
kids frequently say no to their parents!! So maybe parents can learn from their kids!

It's Off To School We Go!

2009-08-10T10:53:00.001-07:00

It's August. That means that by the end of the month, most or all students will be back in the classroom, starting another year of education. Especially for college students, this means trips to the bookstore to buy texts and other course necessities.

As a college instructor for the last 13 years, I have seen first-hand how many students are undisciplined when it comes to spending. This is particularly true when it comes to the use of credit cards. Some students have cards in their own name; others use their parents' cards. Either way, this can be a dangerous situation and a bad spending habit that can last a lifetime, without careful consideration and advice.

Many credit card companies and banks are aware of the naivete of these young men and women as well as their desire for instant gratification. For several years, representatives of these companies would show up at campus student centers and "invite" students to sign up for their cards. In many cases, this led to hundreds, and in some cases thousands, of dollars of debt, on top of student loans. Sadly, many parents were not aware of this excessive debt until it was "too late."

So my advice to students is to avoid these salespeople should you see them on campus. Also, if the cashier happens to throw a credit card application into the bag along with your books, tear it up and throw it out ASAP.

Parents, be aware of your child's spending habits, especially if he or she is away at school. Monitor this very carefully. Don't be afraid to ask how they are buying things, what they are buying, etc. In this case, ignorance is NOT bliss - it can lead to pain: in the wallet!

I wish students and teachers a successful academic year!

Give

2009-07-23T10:43:00.000-07:00

Hi All,

It's been a few weeks since I posted here. Sorry to keep you waiting. I have made a couple of trips and been involved with some other projects. But now I back and ready to go!!

Last time, I wrote about the dangers of using a credit cards at fast-food restaurants, like McDonald's. There is a temptation to buy more than you really need or want because you are not spending cash on the spot. And I'm not even taking into account that many items on a fast-food menu are not very healthy.

That leads me to my next point. If you feel the need to "spend" money, think about a cause that is important to you. Consider giving money on a regular basis to an organization that can use the resources to help those in need. Speaking from personal experience, I get great joy when I give to a cause that's close to my heart. It does not need to be a lot of money - that's for you to decide. Amounts are relative. What are you comfortable giving? How much makes you feel good?

The bottom line is that when we give, we get back in many ways, including joyful feelings, gratitude from others, and yes, even money. If you are a cheerful giver, you will never do without.