| It pays to prepare for recession
There's a big incentive for getting rid of credit card debt. Paying off a credit card that has an 18 percent annual rate is the same as getting a guaranteed rate of return of 18 percent. "You just cannot match that, risk-free," Mr. Spiegelman said. Focus on keeping your credit score high so that you'd be able to obtain loans if necessary in an emergency. Bulk up on your savings. "During this unstable time, we need to be building our cash reserves to be able to cushion against changes and unforeseen events," said Victor Garza, a certified financial planner at the Gardner Group in Dallas. "Before, readers might have neglected building up a cash reserve. Today, you can't afford not to have one." Be sure you max out your contributions to your 401(k), especially if your employer matches your contribution.
Stimulus rebate best used by getting your finances in shape
Instead of spending the tax rebate the government wants to send us, use it to improve your finances. Pay off high-rate credit card debt. Invest in a 529 college savings plan. Start an emergency fund. Salt away money for retirement. Do something that will leave you in better financial shape—not just for a week or month, but longer term.
"You listen to some people and it's almost unpatriotic if you don't take the money out and spend it right away," said Thomas Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants. His group co-sponsors a savings campaign called "Feed the Pig," as in piggybank. "You can be patriotic and save the money."
That's not what politicians want to hear. The rebate is supposed to stimulate the economy.
Debt Management with Debt Consolidation Loans: A Smart Move by Smart ...
Multiple debts against your name that you owe to different creditors not only drains away your income (especially, if they carry high interest rate, such as credit cards) but also rob your peace. It is generally very difficult to manage multiple debts efficiently. Larger sum of money can be borrowed at a lower interest rate. So, it makes sense to consolidate your small multiple debts into a single loan amount. Debt consolidation is a smart way to address your debt problem. A careful approach while collating your debts using debt consolidation loans will not only help you to streamline your finances but also enable you to get rid of the debts in the long run. While applying for a debt consolidation loan, try to borrow only that much money which is just sufficient to pay off the existing debts.
Time Warner Names Jeffrey L. Bewkes Chief Executive Officer ...
Time Warner Inc. (NYSE:TWX) today announced that its Board of Directors has elected Jeffrey L. Bewkes as Chief Executive Officer of Time Warner Inc., effective January 1, 2008. Mr. Bewkes currently serves as President and Chief Operating Officer, and he will retain the title of President. Mr. Bewkes will succeed Richard D. Parsons as CEO, and Mr. Parsons will remain as Chairman of the Board. �Dick Parsons has done an outstanding job during his tenure as Chief Executive Officer,� said Robert C. Clark, Chairman of the Nominating and Governance Committee, on behalf of the Board. �The Board is grateful for Dick�s exceptional leadership in turning this Company around and putting it on a solid foundation for the future. We look forward to working with Jeff Bewkes as he assumes the leadership of Time Warner going forward.
Netlets for Saturday, Feb. 2
The recession has a number of causes, but one lies right at the doorstep of conservative philosophy: the deregulation of the credit and financial markets. Unchecked capitalists are the biggest threat to capitalism itself, which we saw in the savings and loan bailout of the Reagan years and now again in the housing and mortgage crisis. The conservatives' remedies for the recession are just as misguided. Tax cuts for the upper-middle class won't help the poor and working poor pay the rent or health care bills. What's needed is more funding for unemployment benefits, food stamps and heating assistance, along with long-term investments in infrastructure to create good jobs at good wages. But this would demonstrate the ability of government to help ordinary people, so such programs are anathema to Lewis and his cohorts.
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