Today marks an important anniversary. This date in 1929 was when The New York Stock Exchange crashed and began the start of The Great Depression. There was plenty of wealth floating around in the Roaring Twenties, but the bull market came to an end on October 29, a day called “Black Tuesday.” The consequent slump was devastating for businesses and consumers, and lasted for 10 years. Our latest recession was constantly compared to The Great Depression. While this one wasn’t quite as damaging, it had similar effects; unemployment, low stock prices, difficulty securing credit, the closing of businesses, and more.
I think my generation has also learned lasting lessons from this recession. I think some of these lessons will be lasting and have taught us not to take things for granted now that we know how bad things can get.
read on and enjoy this roundup of my 10 favorite credit- and debt-related posts from the past week!
A few weeks ago, I blogged that I was dying to get an iPhone 4, but was doing everything in my power to resist. Despite the new features I so desired, I concluded that I just didn’t need one. Shortly after that, once the phones were in stock, I called AT&T to see if I qualified for an upgrade. I learned that even as a current AT&T customer, it would still cost a whopping $199. Ouch. I wavered back and forth, and ultimately decided to wait — at least until I heard more from people as to whether it was actually worth it.
Unless you’ve been in a coma for the past week, you know that a volcanic explosion in Iceland on April 14 rocked Europe. Flights were grounded for nearly a week in more than 20 countries, leaving countless travelers across the globe stranded, many of whom had to sleep on cots at airports and live on a diet of airport food while running up their credit cards.
Those with travel insurance fared better than those without, but it was a pickle for everyone. Some countries resorted to sending boats to various countries to retrieve some of their citizens and military personnel. People missed weddings, funerals, birthdays, vacations, work and more.
Times like these prove why it’s so important to have a hefty emergency fund set aside. It helps to have a credit card with a large amount of available credit in case you get in a bind. It’s also always smart to carry some cash in case electricity goes out and your credit cards can’t be processed. I recommend you spend a few minutes thinking about how prepared you are for an emergency.
I hope you will take the time to read the following roundup of some of my favorite personal finance blog posts from the past week!
Seven of the best personal finance bloggers on the Web agreed to a group interview, and I’m happy to present it here.
Learn their tips for smart credit card use, best ways to pay down debt, find out their thoughts on the CARD Act and whether it’s possible to live without a credit card.
It’s a varied group, from FreeFromBroke to TheDigeratiLife to Man Vs. Debt to Mr. Credit Card, and so I’m not at all surprised they disagree on some issues. The one thing they have in common is a passion for figuring out personal finances. I learned some things and hope you will too!
I just read Fortune magazine’s article on famed financial forecaster Meredith Whitney’s predictions on the future of credit, of which she says there will be little to go ’round.
To sum it up quickly, she says the new Credit CARD Act’s restrictions on card issuers — especially in regard to restrictions on instant interest rate increases — will, in effect, prevent banks from lending “en masse” like they had before.
Her conclusion: small businesses, the unbanked population and consumers who rely on credit cards to make ends meet will turn to predatory lenders and end up paying dearly in fees and interest rates.
But weren’t we already paying dearly for our debt?