Couples Taught How to Plan For Their Financial Future
Financial woes cause stress in partnerships
Job security and monthly financial budget plans are two increasingly common topics that couples might be discussing over dinner. Given the ongoing financial turmoil, a laissez faire attitude to personal finance that many couples adopted in the recent past is seen by experts as an increasingly risky move. An article in the Atlanta Journal Constitution advises couples to communicate openly about financial concerns and seek outside help if needed to effectively collaborate on financial budget plans and financial security expectations.
Financial budgeting, spending plans, job security, and retirement planning are some of the pressing issues couples are discussing in an effort to weather the financial downturn, says the article. As a reminder to couples working on personal finance issues, this week is recognized by many companies and government organizations including the IRS and Federal Reserve Board as America Saves Week.
America Saves Week, coordinated by savings coalitions America Saves and the American Savings Education Council, seeks to encourage individuals to take steps to “build wealth, not debt.” Through a variety of events, programs and press releases the participating organizations are using this savings campaign as a way to educate individuals and households on the importance of financial security, ways to improve their current standing and how to plan for their financial future.
Mounting credit card losses spell trouble for financial services company, investors
Investors fear a lower dividend as mounting credit card defaults wreak havoc for Capital One. The McLean, VA-based financial services company reported an increase in its annual net charge-off rate for U.S. credit cards as well as a spike in loans delinquent for at least 30 days, according to a Reuters article. Both of these credit metrics could spell bad news for investors as Reuters is reporting some analysts now expect the company to slash its 2009 dividends.
Capital One, a large issuer of Visa and MasterCard credit cards, will need to set aside money to pay for the expected losses. Some cash-strapped consumers struggling to make ends meet due to layoffs and tumbling stock prices are turning to credit cards as a means of last resort spending, often unable to make the minimum payments. Many are aware that these missed due dates will have a lingering effect on credit scores and credit reports, but are caught up spending regardless.
Industry experts warn that marred credit reports with low credit scores will affect a borrower’s ability to obtain a mortgage, car lease, insurance, and even another credit card in the future.