| Debt Adviser by Steve Bucci : Low-rate cards or loan? Either plan may work
Q I have consolidated all of our credit-card debt onto two credit cards with APRs of 4.99 percent and 2.99 percent. My husband wants us to take out a loan so we will make set monthly payments though the interest would be considerably higher, around 11.25 percent. .
Work to get out of debt
DEAR BRUCE: I am 21 years old and need some serious help. I am $14,000 in debt, and it seems to be getting higher every month. Last year, I decided to go to a private tech school but dropped out after three months. Now I owe $7,800 just for that one mistake! I also spent around $4,000 last year because my cat got very ill. I also have little problems like gas, food, college and the occasional trip to the mall. I really need help. I tried to consolidate but that didn't work. I would like to get out of this mess as soon as possible so I am debt-free. I make around $1,000 a month. - C.H., via e-mail DEAR C.H.: You've reached a wonderful age and have some serious problems: You're $14,000 in debt. That's a difficult number, and, in your case, is more than a year's gross income. You say that you've made just one mistake, but the school of hard knocks has a very high tuition.
Ask the Biz Brain
I purchased a house three months ago and have been using credit cards to help pay for renovating the property. My plan initially was to refinance and consolidate all the debt after I was done with the construction. However, my credit score has fallen and I am afraid I won't be able to get the best rate. What should I do? -- To the hiltYou're right, a credit score of 660 won't qualify you for a lender's best rate. Since your credit score is based on the information in your credit report, these balance run-ups are showing something's changing about your use of debt. Credit cards are unsecured debt, so increased balances means increased risk to the lender. That increased risk is showing up in your credit score. I'm going to assume you haven't missed any payments along the way.
Weighing options of credit card debt consolidation effort
D ear Debt Adviser: I have consolidated all of our credit card debt onto two credit cards with APRs of 4.99 percent and 2.99 percent until it is paid off. My husband wants us to take out a loan with the bank so that we are making set monthly payments, even though the interest rate would be considerably higher, possibly around 11.25 percent. I have tried to explain to him that we would be paying more money that way, but he does not understand. Can you explain it in a way he can understand or am I somehow looking at this wrong? -- Susan Dear Susan: I can tell who's the most fun at your house. You clearly like an unstructured approach that allows for side trips when something interesting comes along. The old "ball and chain" likes a direct approach with few unknowns and a clear end to the journey.
IMF Executive Board Concludes 2007 Article IV Consultation with Morocco
On August 3, 2007, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Morocco.1 Background Macroeconomic conditions remain strong. Average growth has reached 5.4 percent per year since 2001, 3.4 percentage points higher than in the 1990s, reflecting the ongoing diversification of the nonagricultural sector, and its increased resilience to shocks. As a result, real per-capita income is on the rise and the unemployment rate has started to decline. However, bad crop years still impact the overall economic performance, as evidenced by the growth deceleration in 2007. The current account is expected to record its seventh consecutive surplus in 2007, thanks to strong remittances and tourism receipts.
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