Filed under: Debt, Extracurriculars, Saving

In an entertaining column in the New York Times, M.P. Dunleavy describes her family’s effort to “go medieval” on that last few thousand dollars worth of credit card debt accumulated prior to their marriage.

To help eliminate the last bit and break free from debt hell, the couple has temporarily suspended retirement savings. Was this a good decision? She’s not really sure. The credit card debt only has an interest rate of 6% and given the tax deduction that comes from funding a traditional IRA, there’s an argument to be made that she should have continued her retirement saving, even at the expense of paying off debt.

But that’s all beside the point, according to Dunleavy: “There are a dozen ways to crunch the numbers, but the ultimate gain wasn’t financial, it was peace of mind.”

There’s a good message here for financial decisions: ultimately, it’s about improving your quality of life, and nothing is more important than peace of mind. If a financial move will make you feel secure and comfortable, it might be a good one: in spite of what any on the internet calculator states.

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Filed under: Fun, Internet, News, Blogging, Social Software, web 2.0

Retaggr takes the concept of paper business cards and transforms them into Harry Potter like interactive cards. Beyond the benefits of not killing trees to leave your contact information, an interactive card is sooo multi dimensional. With your Retaggr card you can:

• Show your current Twitter messages
• Link to your blogs, web profiles such as Facebook
• Display your on the internet activity on other sites like FriendFeed, Flickr, etc.
• Add any web widget
• Grant others to get in touch with you via Skype, MSN, Gtalk, etc.

Whereas paper cards are static, your profile card instantly updates as you update information on your various social networks. Also, when you leave comments on other Retaggr enabled sites, your profile card is left there too. If someone mentions you in a post, they can link to you so your card automagically appears.

A profile card provides more context to what you’re about and what you’re up to. And that’s the other edge of the sword. (Cue scary music). How much information do you want people to have at their fingertips anyway?

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Filed under: Banks, Cards, Debt, The Dolans

Ken and Daria Dolan are widely known as America’s First Family of Personal Finance.

If the weak economy has you tightening your belt a bit these days, you’re not the only one. The subprime crisis is putting a strain on banks’ bottom lines all over the country since they aren’t making as much income off of loan interest. I know, cry me a river, right? But this is important because it impacts your money in a huge way.

To compensate for the dip in funds, banks are once again finding more ways to nickel and dime folks like you and me. The latest tactic is a fee increase from the usual suspect: ATMs. These fees can swiftly add up to hundreds of dollars that can drain your account. While we can only dream about a world where we never have to deal with banks again, there are ways to avoid these high-priced fees. Check out my video below to learn about new ATM charges and my advice for protecting your money.

For more ways to fight back against bank fees, check out the Dolans’ banking section at Dolans.com. Click here to learn more.

Don’t forget to send your money questions to Ken and Daria!

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Islamic banking ‘in its infancy’ - Turkish Daily News
As the U.S.-based credit crunch affects economies worldwide, there is a growing interest toward so-called “Islamic finance,” known by its strict prohibition of interest (riba) and “making money from money.” The growing Islamic finance pie

Celebrity news - Daily Telegraph
Jodie Prenger, one of three West End hopefuls battling to play Nancy in a new production of Oliver! has been told she’s “too big” for the part. A behind-the-scenes film of Marilyn Monroe and Clark Gable on the set of their last feature film The

SocGen replaces investment bank chief Mustier - Boston Globe
PARIS (Reuters) - The top executive at Societe Generale’s investment banking unit, Jean-Pierre Mustier, is being replaced in the wake of the French bank’s rogue trading scandal. Societe Generale stated on Friday in a statement that it was

China Banking Regulatory Commission offers to sign MoU with Taiwan - CNBC
TAIPEI (XFN-ASIA) - The China Banking Regulatory Commission has offered to sign a memorandum of understanding on joint supervision with Taiwan, the Economic Daily News reported, citing an unnamed senior official of Taiwan’s financial regulator, the

TEXT-Fitch rtgs to kick-start 08 Global Banking Conf next Tues - Reuters India
Might 29 - Fitch Ratings will kickstart the Asian leg of its annual Global Banking Conference in Beijing next tuesday on 3 June 2008, followed by Tokyo on 4 June, Singapore on 5 June, and Mumbai on 6 June. Experts from Fitch’s financial institutions

Bank profits fall nearly 46 percent in Q1 - MSN MoneyCentral
WASHINGTON (AP) - Federal regulators say banking industry profits were almost halved in the first quarter, reflecting slumps in housing and credit markets. Federal Deposit Insurance Corp. data show the nation’s federally insured banks and savings

Banks counting on consumers to boost profits - Globe and Mail
Canada’s banks will lean heavily on consumer and commercial banking to prop up profits this year, while the investment banking side of the business remakes itself. The big six banks each released second-quarter financial results this week, and the

Credit where it’s overdue - Boston Globe
REGULATORS AND elected officials are starting to circle the credit card companies, and not a moment too soon. The Federal Reserve reports that credit card debt rose more than 7 percent last month, on top of the already burdensome average of $8,000

NEWSMAKER-Teflon Trichet rules as the ECB turns 10 - Forbes
PARIS, May 30 (Reuters) - Jean-Claude Trichet looks so much at home as head of the European Central Bank that it is hard to envision it once looked as if he might not get the job, notably when he went on trial over a French banking scandal. As the ECB

Gates: Obstructed efforts in Myanmar cost lives - Miami Herald
U.S. Defense Secretary Robert Gates talks at the annual Shangri-la conference on international security Saturday, Might 31, 2008 in Singapore. Myanmar’s obstruction of international efforts to help cyclone victims cost “tens of thousands of lives,” he

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Filed under: Raising money, Texas Pacific Group

Back in the 1980s, David Bonderman was the chief dealmaker for Robert Bass, a Texan billionaire. He helped to structure the $550 million buyout of American Savings and Loan Association of California, which was caught in the S&L morass. It was a complex deal, requiring lots of negotiations with federal regulators. But it ultimately turned out to be a great investment. In fact, the bank became a car to finance other deals.

Well, Bonderman is coming back to the future. Now, as the chief of TPG, he’s one of the top players in private equity. And he wants to do some finance deals. To this end, he’s raising $7 billion for a financial service fund. The investments will range from minority stakes to control situations.

Actually, Bonderman has already been busy with bank deals. For example, he recently assembled the $7 billion equity infusion for Washington Mutual (NYSE: WM). He also approached Merrill Lynch (NYSE: MER) to do an investment, which, so far, hasn’t gone anywhere.

Yet, there are many financial institutions that need cash. Moreover, having TPG as a partner is usually a good thing.

As should be no surprise, it looks like TPG is getting traction on the capital raise, with commitments from the New Jersey Say Investment Council and the government of Singapore.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the internet Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Filed under: College, Debt, Children and Money, Saving

Welcome to WalletPop’s series “You’ve graduated. Now what?” Our bloggers have a wealth of recommendations to help you find you way through that time of breathtaking transformation, from student to working stiff.

Previous: Time to find a place to live

When I graduated from college, my bank account totaled exactly $0 and my first student loan payment on $10,000 was due in less than 30 days because I had used up my grace period on a semester internship in New York. I didn’t have a job lined up and was simply heading home with my parents after the ceremony to see what turned up.

I still had my diploma in one hand when my dad handed me a bill totaling up all that I owed the family for my four years of higher education. He’s the sarcastic type, so I thought he was joking, but he was actually serious. I was taking on some of the debt burden, but my parents had taken out loans as well and he figured they were my responsibility. My mom had to speak him down and let him give me a little time to get on my feet — interest free — before I started making payments.

They also ended up co-signing my first rental lease and fronting the broker’s fee and first month’s rent when I moved to New York for an internship that paid $5 an hour (just to give a sign of the declining times: A few years later, that internship paid nothing at all, and the company went out of business last year). So it wasn’t just Sallie Mae that I owed.

The average college student now graduates with over $20,000 in loans and a couple of thousand more in credit card debt. Given the weak economy, current grads are likely to get into even more trouble before climbing out of the hole. What’s a young person to do to stay out of economic trouble when there’s tiny money coming in?

1. Pay off low-interest loans steadily but slowly. Student loans typically come with low interest rates, so when I financed mine, I picked the longest term that offered the smallest possible payment and had it taken out of my checking account automatically. Even when I started making more money, I kept the same small payments. It took me until I was 30 to complete off my loans, but I never defaulted and had money for other purposes along the way. My husband was more active about his school loans, paying off extra each month and finishing early, which freed up money later on when he needed it more.

2. Work out a deal with your folks. That yogurt in the fridge comes with a cost, and don’t you forget it. If your parents are helping you out, the last thing you want to do is take them for granted. Sit down with them and work out a plan for what expenses they are willing to foot and for how long. Food and shelter will likely be on the table, but $20 to go to a motion picture is probably not. Find out how much debt they are covering from the college tab and if they want you to tackle any of it. Then get onto the business of furthering your career and making them proud. I answered my dad’s bill with a nicely worded thank you note. It brought my parents to tears and we all lived happily ever after.

3. Live within your means. Even if you are lucky enough to be employed immediately after graduation, your starting salary will likely not be enough to cover all the things you want. It might be a struggle just to afford rent and food. Now is the time to live within your means and not rack up any additional debt, especially for luxury items. Learn how to drink and entertain yourself for free. Learn how to cook. Update your wardrobe with hand-me-downs. I survived my first year in Manhattan on peanut butter sandwiches, first-date drinks and office hot chocolate. I never took cabs, invited people over to watch Television instead of going to the movies and went to any event that offered free food (I suggest getting religion — any religion — as a cost-cutting measure).

4. Don’t forget about the future. Times might be tight now, but if you start saving now when your potential is high, you’ll be happy with yourself even if your paychecks are slightly smaller right now. I contributed the maximum to my 401(k) at my first job — in which I lasted less than a year — and the matching funds alone were enough for a down payment on an apartment ten years later (and that was even after a disastrous merger tanked the company stock). I sold that place two years ago, and was able to sock away enough in 529 plans for my own kids that they should be left with very tiny college debt no matter what our financial situation is 16 years from now.

I’m now, by the way, back in student loan debt from my husband’s master’s degree. He consolidated three loans to get the lowest possible interest rate and picked an aggressive payment schedule, since we’ve no other debt. He pays less than $200 a month, and should be done in a couple of years, with little damage to our monthly budget.

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Filed under: Blogging, Web services, Social Software

If you think Twitter’s 140-character limit doesn’t go far enough to restrict users when it comes to nanoblogging, you’ll be glad to know there’s Adocu. Adocu is a nanoblogging platform with a one-word limit for each post, which “keeps it short and simple,” but also makes it tricky to say anything meaningful without typingyourmessageoutlikethis, forming one long word.

With Twitter experiencing stability issues, we guess the proliferation of new nanoblogging platforms are waiting hungrily for everyone who’s threatened to quit Twitter to put their money where their mouths are and do it. We’re not ruling out the possibility of a Twitter killer, but Adocu is probably not it. They’re working on buying up an SMS shortcode, but for now they lack the all-important text-message updating feature that helped Twitter become so prevalent. It’s not that Adocu doesn’t do what it’s supposed to do, it’s just that even if it had all of Twitter’s features, plus stability, it would be hard to sell users on a one-word blogging system.

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France Telecom taps banks for large bid loan-sources - Guardian Unlimited
LONDON/PARIS, Might 29 (Reuters) - France Telecom has approached banks seeking to arrange a 10 billion euro ($15.6 billion) loan facility to finance an unspecified acquisition, banking sources told Reuters on Thursday. One banker whose bank had been

Ocean Tomo to Auction Online, Mobile Commerce, Banking and Financial - Forbes
Ocean Tomo Auctions this day announced that it will offer for sale several Lots of patents relating to On the internet & Mobile Commerce and Banking & Financial Services technologies at The Ocean Tomo 2008 European Live IP Auction on 26th June at The Grand Hotel

Kass: I’m Putting My Money in the Banks - Street.Com
This blog post originally appeared on RealMoney Silver on Might 29 at 11:08 a.m. EDT. I have been an outspoken bear on bank stocks since 2005. (Just ask Jim “El Capitan” Cramer !) In the 2005-2007 interim, I was short many of the major money center

Analyst states banks stocks are still too pricey - CNN Money
NEW YORK (Associated Press) - Investors that can short large-cap bank stocks should do so, and those with long-term positions should reduce exposure to the sector, a Sterne Agee analyst wrote Thursday in a research note. Analyst Sean Ryan put a

Teradata Implements Financial Services Enterprise Data Warehouse at - MSN MoneyCentral
Teradata Corporation TDC , the global leader in enterprise data warehousing, this day announced that the Teradata Enterprise Data Warehouse (EDW) built for Industrial and Commercial Bank of China (ICBC, SSE: 601398; HKSE: 1398), one of the largest banks

TFN NEWS BRIEFING: Banking and insurance highlights to 15:45 BST - Forbes
and diverse sources of revenues and earnings. Neither the Subscriber nor Thomson Financial News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses

Royal Bank, National Profits Decline; CIBC Posts Loss (Update1) - Bloomberg
May 29 (Bloomberg) — Royal Bank of Canada and National Bank of Canada reported profit declines as writedowns on subprime debt overshadowed higher revenue from consumer banking and insurance. Royal Bank, the largest lender, stated profit in the three

Ruby Tuesday Names Rockwell Its Finance VP - MSN MoneyCentral
Ruby Tuesday, Inc. RT announced this day that Steve Rockwell, a Wall Street veteran with more than 25 years of experience in financial analysis and management, has been named its Vice President of Finance. Rockwell will direct investor relations

S&P ups Intuit’s ratings, says outlook is stable - CNBC
NEW YORK (AP) - Standard & Poor’s Ratings Services said Thursday it raised its ratings for Intuit Inc. on the financial software company’s successful integration of online banking company Digital Insight Corp. Intuit completed its acquisition of

Royal Bank, National Profits Drop on Writedowns; CIBC Has Loss - Bloomberg
May 29 (Bloomberg) — Royal Bank of Canada and National Bank of Canada reported profit declines as writedowns on subprime debt overshadowed higher revenue from consumer banking and insurance. Royal Bank, the largest lender, stated profit in the three

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JK Rowling pens secret Harry Potter prequel - News.com.au
BILLIONAIRE author JK Rowling has written a secret prequel to the Harry Potter series, which is to be sold at auction next month to raise money for charity. The successful writer of the Potter books - which have become blockbuster movies - answered a

UK is in ‘consumer recession’, retail boss warns - Daily Telegraph
The UK is now in the midst of a “consumer recession”, according to the chief executive of Blacks Leisure, the outdoor equipment retailer. As Britons are hit by the rising cost of living and fears over the health of the housing market, they are

Man Group - Record Results in Turbulent Markets - MSN MoneyCentral
LONDON, Might 29 /PRNewswire-FirstCall/ — Man Group CEO Peter Clarke and FD Kevin Hayes interviewed on http://www.cantos.com about record-breaking results for 2007-08 which saw pre-tax profits of over $2bn generated and assets under management up 21

Investigators seek to wind up Olmert case quickly - USA Today
Israel was rocked this week by the explosive testimony of a key witness, U.S. businessman Morris Talansky, who stated he gave Olmert $150,000 (euro95,000) of his own money over the years, in addition to unspecified sums from other donors.

Govt may decide on fuel price hike this day - Hindustan Times
The government is likely to take a decision on Thursday, on raising fuel prices and compensation package for the oil PSUs. Petroleum Minister Murli Deora is apt to meet Prime Minister Manmohan Singh on Thursday afternoon and if the PM concurs, the

Stocks set to push higher - CNN Money
LONDON (CNNMoney.com) — U.S. stock futures rose Thursday, lifted by a retreat in oil prices, as investors awaited a revised reading on U.S. economic growth. At 5:01 a.m. ET, Nasdaq and S&P futures were higher and suggesting and positive start on

ABC, CBS, NBC plan joint cancer telethon - Digital Spy
Rival US networks ABC, CBS and NBC are planning an unprecedented link-up to raise money for cancer research. All three will simultaneously broadcast a one-hour telethon show on September 5 featuring appearances from pop acts and celebrities, with

Businessman testifies that he gave cash to Olmert - San Francisco Gate
An American businessman told prosecutors Tuesday that he handed cash-stuffed envelopes to Israeli Prime Minister Ehud Olmert and suspected that some of the money went to funding Olmert’s fondness for fine hotels and first-class flights. Jewish

Dow Jones Factiva Adds Alert Widgets - MSN MoneyCentral
For First Time, Customers Can “Point, Click and Publish” Relevant and Targeted News From Leading News Sources Such as The Wall Street Journal and Dow Jones Newswires NEW YORK, May 29 /PRNewswire/ — Dow Jones & Company this day introduced new alert

Everyone Wants A Piece Of Alnylam - Forbes
Alnylam Pharmaceuticals may not have been a favorite with investors today, but analysts seem to think the company is on the right track after signing a deal with Takeda Pharmaceuticals. The Cambridge, Mass.-based biotech has inked a deal with Japan’s

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Filed under: Debt, The Dolans

We don’t mean to get too personal, but what’s your score? We’re talking about your credit score, of course. A few years back, no one knew their credit score. Today, people brag (or complain) about it at cocktail celebrations and compare scores over the water cooler at work!

That’s because knowing your credit score can have a huge impact on your wallet. Being a 640 versus a 690 means paying 12.2 percent versus 9.5 percent on your next loan, and that adds up to thousands of dollars in extra interest!

So, you already know that the higher your score the better. And you probably know the basics for keeping your score high-pay your bills on time, don’t carry too much credit card debt, etc.. But you might be surprised at some tiny known factors that can do some serious damage to your score.

In a world where one delinquent payment-just one-can drop your score 100 points, let’s look at eight credit score “no-no’s” that pack a real wallop:

1. Parking tickets and library fines. Yup, that $3.45 late fee from the library can single-handedly knock down your credit score. More and more local governments are reporting unpaid parking tickets, library fines and such to collections agencies and that can really hurt your score as you’ll see in just a moment…

2. Collections, liens and judgments have a huge negative impact on your score, no matter how small the amount. And they hurt for a long time! Even if you pay off a collection, it stays on your report for seven long years-tax liens for 15! Don’t let that happen. Your payment history counts for a whopping 35 percent of your score, so take care of any outstanding fines, and work with creditors to avoid your debt being turned over to collections in the first place.

3. Being a responsible consumer. It’s crazy, we know, but in credit score land, you’re punished for being responsible with your money. Your credit score will actually be injured if you pay off your credit card balance in full each month or simply don’t charge things on credit.

4. Shopping for a loan. If you’re shopping for the best rate on a mortgage or automobile loan, be sure to do all your comparison shopping in a short period of time. Every time someone looks at your credit rating at your request, it counts as an “inquiry” and stays on your report for two years. Too many inquiries lowers your score because it looks like you are about to open lots of new lines of credit. But if you complete your comparison shopping in a 14 day period, it will count as just one inquiry.

5. Unpaid or late utility bills. It used to be that utility companies only reported seriously delinquent accounts to the credit bureaus, but many are now reporting late or missed payments just like lenders do. Plus, utilities-including your electric, gas or phone company-are much quicker to turn late accounts over to collections agencies. If you are behind or can’t pay, contact your utility and work out a plan before that happens.

6. Consolidating your debt onto a low interest rate credit card. If you are carrying balances on several cards and get an offer for a low interest rate card, you might be tempted to transfer all of those balances to that new card. You save money, you lower your interest rate…and you sucker punch your credit score! The percentage of available credit used is a key factor in your score (how much you owe accounts for 30% of your score). By consolidating, you slash the amount of available credit and jack up the percentage of your credit used in one move-not good. Keep your balances to no more than 25-30% of your credit limit.

7. Closing old credit card accounts you don’t use. You might think that closing lines of credit you aren’t using sounds smart, but not so fast! The length of your credit history counts for 15% of your score, so closing older accounts is actually a negative. Plus remember how the percentage of credit used counts against you? Well, closing old accounts with no balances can increase the percentage of available balance you’re using-another no-no.

8. Bankruptcy and foreclosure. It won’t come as any surprise that these are the “big kahunas” when it comes to killing your credit score. But what may surprise you is how long they’ll continue to hurt your score. Bankruptcy stays on your record for 10 years and can easily drop your score 200 points. That means if you are lucky enough to even be able to get a loan, you’ll pay sky-high interest rates for the privilege.

Now we have one last huge surprise…an item that won’t injured your credit: credit counseling. If you’re in over your head and want to see a credit counselor for help, it won’t negatively impact your credit score one bit. To watch us debunk more credit score myths, click here to watch our new video on Dolans.com!

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