Archive for June, 2008
Monday, June 30th, 2008
One good turn deserves another: Sally Heringstad, a US-based journalist who writes for CreditCards.com and RedPlum.com, as well as other publications, was looking for money experts and she found us!
In the article “Free Session With A Financial Planner: Should I Bother?”, Sally recommends that you interview three or four financial planners before you decide on one that will be the right fit for you. We agree - you can read the whole article, with a quote from Tracy and a link to MoneyMinding.com, right here.
Posted in Media Mentions | No Comments »
Friday, June 20th, 2008
I have had a conversation with a couple of our advisors and really come up with more questions than answers on why someone would want to close a credit card – mostly because we can only think of a very limited number of reasons why someone would ever want to close a credit card account. Those being:
- default – in which case the institution would do it for you
- it interferes with you accessing a lower rate or better credit
- death or divorce
One of the big mistakes people make is telling themselves they can’t be trusted with credit so they work hard to pay it off, then close it. This is only reinforcing a poverty mentality and an ‘I can’t trust myself’ sort of attitude which will just create more and more problems.
Closing an account before it’s paid off seems a bit odd. If your account isn’t in default, and your intention is to pay the balance, then you are best to just keep the account open and keep paying for it. It will still appear on your credit bureau, so I’m not sure what the benefit would be to ask for it to be closed while you continue to pay off a balance
Regarding how to check on your accounts, the answer is always the same – to take control of your situation and to check your personal credit bureau. If you want something changed, then it is your responsibility to check it and that is done through the credit bureaus directly. And, if you really do want to close an account, then it has to be done in writing – and each institution will have a different procedure – check with them individually, and follow up.
Posted in MoneyMinding Musings | No Comments »
Monday, June 16th, 2008
Some people, in an attempt to control their spending and get out of debt, believe that closing their credit cards is a smart financial move. But is it?
Having access to credit is actually of huge potential benefit. It’s how businesses are built and fortunes are made. It’s an indication that lending institutions have faith in your ability to make timely payments.
You can actually harm your credit rating by closing a long-standing card. The longer you can show a history of good credit, the better your credit score will be.
Of course there are ramifications of thinking your credit card is closed when you are actually carrying a balance. As well, if that credit card charges an annual fee, you might be surprised by a bill you did not expect. On the whole, you are better off keeping a credit card with zero balance and using it once in a while, and keeping a regular watch on your credit bureau as part of your overall financial management.
Likewise, having access to credit and a complete financial plan to achieve wealth is also a bigger benefit than closing a card. There are only a few times when it might make sense to close a card, such as when it could potentially interfere with other low interest, unsecured access to credit, but for the most part – keeping your cards and monitoring them is the wealth strategy I would recommend.
Posted in MoneyMinding Makeover Magic | 3 Comments »
Friday, June 6th, 2008
A journalist sent out a query yesterday asking, in essence, if it were advisable for financial professionals to be involved in community activities. The subtext of the question was whether the possibility of financial gain would “taint” the charitable activities somehow. That thought cried out for an answer from MoneyMinding, because not only is every staff member involved in community activities - we also started a charity!
If you’ve been following MoneyMinding’s growth over the last few years, you should know about the MoneyMinding Foundation, a registered charity which supports financial literacy and empowerment programs both locally and around the world.
The MoneyMinding Foundation helps us to open the doors of financial literacy to people who otherwise could not afford to acquire the information themselves, or have access to the services and information they need to succeed financially. In our training system the giving component of financial planning is not something that is left to the end and discussed as part of an estate plan. It is an integral component of the wealth building process. Having a holistic and inclusive business model that addresses the needs of an entire community is key to our success. A healthy, vibrant organization needs to give back to the community in some form or other – either financially, or through volunteering.
On a personal level, I have also been an active volunteer and contributor to the church and local charitable organizations, and have several sponsored children in developing countries – all of which have been good for me, good for the recipients and good for business.
Posted in MoneyMinding Musings | No Comments »
Wednesday, June 4th, 2008
I’m speaking just from my experience as a retail customer
A few things that would make my wait in line more bearable would be: