It’s fine to have a source that you prefer above others, but you need to remember that they are not infallible. They don’t know you, or how much money you have to invest or lose, or how much debt you have, or any of the extenuating circumstances that make your situation unique. Their advice is often generic and tailored to a mass audience, which may or may not include you. Any expert is merely making an educated guess based on the information they have and the trends they see. Some are better at reading the trends and information than others. Since none of them have a crystal ball, they cannot know the future for certain. And you shouldn’t assume that they do.
So if no one can be trusted one-hundred percent, what can you do to keep yourself form being victimized by a clueless talking head? First, don’t take anything any expert or media outlet says as the gospel truth. Even if they were right in the past, that’s no guarantee that they will be right in the future. Listen and learn from your preferred source, but remember that they are making educated guesses and are not certain what the future will bring. Also keep in mind that they do not know your specific financial/investing situation, so their ideas may not apply to you.
Second, educate yourself. The more you know about finance and investing, the better you become at interpreting trends and information for yourself. Since you know your situation better than anyone else, you can take the information you receive and determine whether any of it applies to you or is useful for you. When you are educated about finance, you can watch/read the experts with a critical eye and get a feeling for whether the information is junk, or if there’s something to it. Education can make you into your own expert, reducing the need to rely on the opinions of others who don’t know you or your situation.
Third, use a variety of sources in your financial planning. The best thing you can do to protect yourself from incorrect information is to use multiple sources for your information. Read a variety of magazines and books. Watch different television stations. Listen to several different gurus. All channels, authors, and experts have their own political, religious, or sponsorship affiliations and agendas that lead them to report things in ways that meet those agendas. By using multiple sources, you get a more complete picture of a situation. You get beyond the picture that one station/expert wants you to see and you see how the situation resonates with different groups. This complete picture can lead you to make better financial decisions than if you only had one side of a story.
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Thursday, May 28, 2009
Credit Cardholders' Bill of Rights
From Senator Carl Levin (MI):
Earlier this week, Congress passed landmark legislation that substantially reforms the way credit card companies do business with their customers. I had the pleasure of attending the culmination of our work earlier today as President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) into law (P.L. 111-24). This law is the result of a comprehensive effort by many in Congress to protect consumers from some of the most egregious and unfair credit card practices common in the industry today.
I have been concerned about abusive credit card practices for years. In 2005, in response to numerous complaints from credit card holders about unfair practices involving interest rates, fees, and disclosure practices, I asked the Government Accountability Office (GAO) to investigate the matter and to issue a report with their findings. In 2006, the GAO issued that report, which detailed the fees, interest rates, and practices associated with 28 popular credit cards and the profits they were producing for six large credit card issuers.Those findings prompted me to initiate an investigation into the practices of the credit card industry through the Permanent Subcommittee on Investigations (PSI), of which I am the Chairman. In May 2007, in response to the abuses brought to light through PSI’s extensive work, I introduced the Stop Unfair Practices in Credit Cards Act (S.1395). This bill sought to ban some of the most abusive credit card practices that unfairly deepen or prolong credit card debt held by consumers. Although this bill was not enacted, we did not give up.
This Congress, I teamed up with Senator Chris Dodd (D-CT), Chairman of the Senate Banking, Housing, and Urban Affairs Committee, to introduce the Dodd-Levin CARD Act of 2009 (S.414). Our legislation provided the foundation for the compromise bill that was signed into law today. Although not as strong as the original Dodd-Levin bill, the compromise still puts an end to a host of unfair credit card practices that mire millions of families in debt. Under this law, for example, credit card companies are prohibited from hiking interest rates retroactively on existing credit card debt for cardholders who play by the rules and from imposing interest charges on debt that was repaid on time. Cardholders who paid late and had their interest rates hiked could be able to restore their prior rates if they pay the minimum amount on time for six months. The bill also requires credit card companies to send out bills 21 days before the bill is due and to apply cardholder payments first to the debt with the highest interest rate.
As many in Michigan continue to struggle through the worst economic conditions they have faced in their lifetimes, this law will put an end to a host of deceptive and unjust credit card practices that compound the financial hardship of consumers who are doing their best to stay afloat. This is a good day for consumer rights and protections, and I am pleased our perseverance has paid off.
Earlier this week, Congress passed landmark legislation that substantially reforms the way credit card companies do business with their customers. I had the pleasure of attending the culmination of our work earlier today as President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) into law (P.L. 111-24). This law is the result of a comprehensive effort by many in Congress to protect consumers from some of the most egregious and unfair credit card practices common in the industry today.
I have been concerned about abusive credit card practices for years. In 2005, in response to numerous complaints from credit card holders about unfair practices involving interest rates, fees, and disclosure practices, I asked the Government Accountability Office (GAO) to investigate the matter and to issue a report with their findings. In 2006, the GAO issued that report, which detailed the fees, interest rates, and practices associated with 28 popular credit cards and the profits they were producing for six large credit card issuers.Those findings prompted me to initiate an investigation into the practices of the credit card industry through the Permanent Subcommittee on Investigations (PSI), of which I am the Chairman. In May 2007, in response to the abuses brought to light through PSI’s extensive work, I introduced the Stop Unfair Practices in Credit Cards Act (S.1395). This bill sought to ban some of the most abusive credit card practices that unfairly deepen or prolong credit card debt held by consumers. Although this bill was not enacted, we did not give up.
This Congress, I teamed up with Senator Chris Dodd (D-CT), Chairman of the Senate Banking, Housing, and Urban Affairs Committee, to introduce the Dodd-Levin CARD Act of 2009 (S.414). Our legislation provided the foundation for the compromise bill that was signed into law today. Although not as strong as the original Dodd-Levin bill, the compromise still puts an end to a host of unfair credit card practices that mire millions of families in debt. Under this law, for example, credit card companies are prohibited from hiking interest rates retroactively on existing credit card debt for cardholders who play by the rules and from imposing interest charges on debt that was repaid on time. Cardholders who paid late and had their interest rates hiked could be able to restore their prior rates if they pay the minimum amount on time for six months. The bill also requires credit card companies to send out bills 21 days before the bill is due and to apply cardholder payments first to the debt with the highest interest rate.
As many in Michigan continue to struggle through the worst economic conditions they have faced in their lifetimes, this law will put an end to a host of deceptive and unjust credit card practices that compound the financial hardship of consumers who are doing their best to stay afloat. This is a good day for consumer rights and protections, and I am pleased our perseverance has paid off.
Dave speaks to the Maryville College's class of 2009
Dave Ramsey was asked to speak at the Maryville College commencement ceremonies two weeks ago. Dave's inspirational speech touched on his own turbulant financial past as well as discussed hope and perceverance. He included an example from the Disney Movie The Lion King of all things in explaining you should not carry current failures into the future with out.
MC also presented Dave Ramsey with an honorary Doctor of Finance degree.
Take a look at the article here.
MC also presented Dave Ramsey with an honorary Doctor of Finance degree.
Take a look at the article here.
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