{"contentId":"1896008","authorDomain":"carmenwongulrich"}

Newsvine Q&A with CNBC's Carmen Wong Ulrich

News Type: Event — Mon Sep 22, 2008 10:14 AM EDT

business, economy, personal-finance, cnbc, brian-williams, nbc-nightly-news, staying-afloat

Hi. I'm Carmen Wong Ulrich, host of CNBC's "On the Money" (airs weekdays at 10PM ET) -- I'll be available on Tuesday, September 23 to answer your personal finance questions and offer advice on how to keep from falling behind in turbulent economic times. Feel free to post your questions here in advance.

For those of you visiting us here for the first time, please know that Newsvine is an interactive web site designed for members to participate in thoughtful discussions about news-related topics. Feel free to take a look at the Newsvine Code of Honor, it's a short list of standards that existing members hold themselves to here.

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{"commentId":3039821,"authorDomain":"jcrand2"}

JCrandall

Hi Carmen,
I am working to pay off a $5000 credit card debt with Bank of America. My rate was high at 19.99%, so it's been my main focus and I always pay more than the minimum balance on or before the due date. Today I found out that they had raised my interest rate to 28.99%. They said they checked my credit report, but have no reason they can give me at this time for the increase. Then they reduced my credit limit from $7200 to $5200. It looks like they are setting me up to go over my limit and accrue fees. Unfortunately, I missed the notice with my online August statement and can no longer opt out of the high rate (I am assuming by closing my account). I don't understand how it is legal for them to do this to me without a valid reason like going over my limit or paying my bill late? Please help.

Thanks!
Jamila

{"commentId":3039821,"threadId":"364350","contentId":"1896008","authorDomain":"jcrand2"}

1 vote

#1 - Mon Sep 22, 2008 10:33 AM EDT

{"commentId":3058447,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

You're right Jamila - it's not very fair to change the terms of your credit card deal without reason. Unfortunately, when we sign up for credit cards, the fine print states that they can do this. In the past, keeping your business with good customer service and competitive rates was the name of the game. Today, banks are in a lot of trouble - default rates have gone up so they're taking what they think to be action to protect themselves by lowering spending limits. Some card companies are cutting as many as half their card-holder's limits - millions of people! What you can do is take your business elsewhere. Stay on top of your bill but head to Bankrate.com or Interest.com and shop for another card to transfer your balance (try to avoid balance transfer fees) while you're working on paying it off. For more information on what's being done to limit these practices, head to ConsumerAction.org.

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#1.1 - Tue Sep 23, 2008 12:58 PM EDT

{"commentId":3047401,"authorDomain":"meeziedick"}

Dick Stacy

I have funds invested in Wachovia and Prudential. How are these companies faring in the current economic crisis ?

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#2 - Mon Sep 22, 2008 5:27 PM EDT

{"commentId":3058513,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Dick - Unless you're invested in the company stock of Wachovia and/or Prudential, you don't have to worry about how they're doing. They're middle-men - should either hit trouble and go under, another bank/broker would step in and take over your accounts. Should any of your money or holdings get lost in the transition, that's where insurance from the SIPC steps in (up to $500,000). Head to SIPC.org for more info.

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#2.1 - Tue Sep 23, 2008 1:00 PM EDT

{"commentId":3049611,"authorDomain":"jsemom"}

joe-401577

Will Wachovia/AGEdwards fail or survive??????Frankly, I do not believe a word any of them say:brokers, politicians, govt officials, and most of 'talking heads' on TV. Our govt does not care about its people, and we are absolutely on our own. Just like Katrina and Ike hurricane victims. Never hear about Ike and S Texas now, and gasoline shortages, but that is still going on. When did Bush show up?? Four days later, as usual. Massive relief effort going on, but it will be people helping people, more than FEMA. What if our entire country is in trouble and people are unable to help but just trying to survive??Then what?? Asked about Wachovia/Edwards, was given "company spin," now I see Wachovia had 6.8 billion loss first qc of 08, so I think they may go under too

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#3 - Mon Sep 22, 2008 8:15 PM EDT

{"commentId":3056498,"authorDomain":"KATE-546351"}

KATE-546351

Carmen,

We have an AIG annuity for about $25K. Should we close this out (with penalty, we are 54 years old), and use this money to pay off our mortgage balance (mortgage balance is $29K). We have other investments and approx. 50K in Cash.

Thank you

{"commentId":3056498,"threadId":"364350","contentId":"1896008","authorDomain":"KATE-546351"}

1 vote

#4 - Tue Sep 23, 2008 11:21 AM EDT

{"commentId":3058574,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Hello Kate - Nope, hold onto that annuity. Paying the price of taking it out is too expensive. Whatever happens to AIG, your annuity is protected on several levels, even if someone else steps in to buy up their annuity business. Keep making your regular mortgage payments and building up your cash reserves and other investments, especially any IRA's you have. If you're not retiring until 65 years old, you have a little over 10 years to ride this drop out and make some money when the market comes back - because it will!

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#4.1 - Tue Sep 23, 2008 1:03 PM EDT

{"commentId":3057790,"authorDomain":"wanderinjudith2"}

Kittywake

I'm not sure if I am posting my question on a different topic in the correct place, but here goes:
I live in North Carolina. If I open a couple of CDs over the internet in other states, will I be liable to pay state taxes in those states? I moved from California a couple of years ago, but left my money market account in my CA credit union. My tax preparer has me paying state taxes in CA and NC as well as federal taxes. I don't want additional taxes. Can you help?

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#5 - Tue Sep 23, 2008 12:27 PM EDT

{"commentId":3058517,"authorDomain":"mrprice1911"}

Mr. Price

I am aware of the standard rule regarding what constitutes a recession - 2 consecutive quarters of a country's Gross Domestic Product sustaining a negative growth factor - but that definition seems to not take into account so many other clear factors that point to an economic downturn. What, in your opinion, determines the existence of a recession?

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#6 - Tue Sep 23, 2008 1:01 PM EDT

{"commentId":3058879,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Mr. Price - If you feel it, it's real...!

{"commentId":3058879,"threadId":"364350","contentId":"1896008","authorDomain":"carmenwongulrich"}

#6.1 - Tue Sep 23, 2008 1:18 PM EDT

{"commentId":3058892,"authorDomain":"vickie-pesina"}

Vickie-546875

I was loosing my house to foreclosure and filed bankruptcy in the attempt to keep it. Long story short I filed full bankruptcy in May and gave my house back. My question is they won't take it. They have done nothing with the house. We are still receiving bills for the house. Is there a chance I will still get to keep it? My lawyer has attempted many times to contact them and they are not returning our calls. We moved our right after we filed. I just want some form of closure.

{"commentId":3058892,"threadId":"364350","contentId":"1896008","authorDomain":"vickie-pesina"}

1 vote

#7 - Tue Sep 23, 2008 1:18 PM EDT

{"commentId":3059009,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Vickie - Keep records of all your attempts at contacting them. The state of the home and what you do or do not owe is tied to the type of bankruptcy you filed and the ruling. What chapter did you file?

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#7.1 - Tue Sep 23, 2008 1:23 PM EDT

{"commentId":3059528,"authorDomain":"vickie-pesina"}

Vickie-546875

I filed both Chapter 11 then it turned into 7 when they wouldn't work with us to keep it. I fiqured my credit was in the toliet might as well flush. I just wanted a clean start, but we are still required to mow the yard and pay the sewer. I thought by filing bankruptcy it released us from that. I would love to keep my house, but they would not return phone calls or any attempt to work with them.

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#7.2 - Tue Sep 23, 2008 1:47 PM EDT

{"commentId":3058936,"authorDomain":"vickie-pesina"}

Vickie-546875

{"commentId":3058936,"threadId":"364350","contentId":"1896008","authorDomain":"vickie-pesina"}

#8 - Tue Sep 23, 2008 1:21 PM EDT

{"commentId":3059127,"authorDomain":"nobullranch"}

kenijo

Why isn't anyone asking these fat cats if or how much of their money they would be willing to put up? With all the talk about excessively high pay and bonuses One would think that they should be contributing, yes?

{"commentId":3059127,"threadId":"364350","contentId":"1896008","authorDomain":"nobullranch"}

#9 - Tue Sep 23, 2008 1:29 PM EDT

{"commentId":3059273,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Kenijo - Part of the proposed concessions to this package is capping CEO pay. Stay tuned on that one - I'll definitely cover it on my show should it go through.

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#9.1 - Tue Sep 23, 2008 1:36 PM EDT

{"commentId":3060052,"authorDomain":"syl200"}

Sylvain-547089

HI Carmen, I have been investing 80% of my money in real estate for more than 10 years and I am fortunate to have most of my rental property rented. Should I keep those rental property or try to get cash in my pocket

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#10 - Tue Sep 23, 2008 2:14 PM EDT

{"commentId":3062625,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Sylvain - I'd love for you to be more diversified with your investments. Outside of your real estate, make sure you have a substantial cash cushion for "what if"s, such as you lose your job or income and need to make ends meet. For you it might also mean covering if you lose some renters... Max out any IRA's you have access to - if you're self-employed, go with a SEP. To find out rules (and the tax advantages) of IRA's, head to IRS.gov and search "SEP". Good luck!

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#10.1 - Tue Sep 23, 2008 4:16 PM EDT

{"commentId":3060531,"authorDomain":"jarefi"}

joseph arefi

advanta bussines card Raised my interest rate on my Card from 6.99 to nearly 26% APR. When I called to find out why, because my credit is excellent and I have no late payments, I was told that the decision was based on several factors and that they would not disclose the reason to me. so what should i do now?

{"commentId":3060531,"threadId":"364350","contentId":"1896008","authorDomain":"jarefi"}

#11 - Tue Sep 23, 2008 2:39 PM EDT

{"commentId":3062562,"authorDomain":"carmenwongulrich"}

Carmen Wong Ulrich

Joseph - Don't use the card. Keep it open for your credit history only but use another card with a lower, fixed rate. Though remember, unless credit card reform comes through (there's a Bill getting voted on in Washington today), "fixed" doesn't necessarily mean "fixed". The power you have is having good credit - that can always mean you can move your business elsewhere. Also, stay out of credit card debt as much as you can - a great money-move to make, especially now!

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#11.1 - Tue Sep 23, 2008 4:13 PM EDT

{"commentId":3060769,"authorDomain":"jarefi"}

joseph arefi

ADVANAT BUSSINES CARD Raised my interest rate on my Card from 6.99 to nearly 26% APR. When I called to find out why, because my credit is excellent and I have no late payments, I was told that the decision was based on several factors and that they would not disclose the reason to me. so what should i do now?

{"commentId":3060769,"threadId":"364350","contentId":"1896008","authorDomain":"jarefi"}

#12 - Tue Sep 23, 2008 2:51 PM EDT

{"commentId":3063746,"authorDomain":"xvserenamarievx"}

Jessica A122

Carmen,

I am in a financial mess! I have 3 credit cards with about $14k total credit limit, which due to to my own bad spending habits (learned the hard way from those) and having to support my mom while she is waiting for a disability determination, have all now been maxed. I am considering my Citibank card, which has the largest limit (therefore the largest balance), at $9700. It is not, however, the card with the highest interest rate, and it is my oldest card, which has done well to establish my good credit history, as I have never had to pay just the minimums to get by - I've always made more than the minimum.

I have been contacting Citi to start a debt negotiation plan so that I only have to pay back a portion of the debt, but I know I would lose this account at the end of it and might end up sacrificing my credit score as a result. The ease of financial stress, though, might be worth it. I'm also concerned because I am getting married in two years, and if I can get enough of these debts paid, I might be able to get a personal loan at a much lower rate to pay for it (my parents can't afford to).

Would it be worth it at this point to go the debt negotiation route to get rid of this massive debt, so I can get myself back on track? If so, what kind of outcome should I ask to be reported to the three credit bureaus? What kind of impact could this have on my credit score? Or would I be better off to just keep going as I am and pay things off the hard (long) way?

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#13 - Tue Sep 23, 2008 5:08 PM EDT

{"commentId":3065264,"authorDomain":"diaz-ted"}

ted-548230

Is my money mkt. and muni money mkt. safe?

{"commentId":3065264,"threadId":"364350","contentId":"1896008","authorDomain":"diaz-ted"}

#14 - Tue Sep 23, 2008 6:23 PM EDT

{"commentId":3067001,"authorDomain":"hunt-c"}

Charles-548637

I have a 401K account. It is primarily split between a bond mutual fund and stocks in small, mid, and large caps mutual funds. In these difficult times in the stock market, should I make any changes to my stock allocations. I would like to retire in 2 years, but that may just be a dream now.

{"commentId":3067001,"threadId":"364350","contentId":"1896008","authorDomain":"hunt-c"}

#15 - Tue Sep 23, 2008 7:58 PM EDT

{"commentId":3550640,"authorDomain":"lschwab"}

Lynn-652496

HI - I have several department store credit cards , they do not have balances but was sucked into their 20% first purchase gimick. I've heard not to close them as it will affect my credit score , I just wanted to clean up my credit report and get rid of what hadn't been used. Also, I have 2 major credit cards with 0% interest for a yr (I've been with them for about 10 yrs)- one is a 0 balance and the other has a 6k balance, which I'm trying to aggressively pay off, my question is both of the these cards have an huge limit (26k) would it be better for my scores to ask them to lower the limit?

{"commentId":3550640,"threadId":"364350","contentId":"1896008","authorDomain":"lschwab"}

#16 - Fri Oct 17, 2008 12:48 PM EDT

{"commentId":3608201,"authorDomain":"sheriblair"}

dilemmamama

Hi Carmen! I hv just got div settlement abt $320k. I am stay at home mom to two teens 2 & 4 yrs to college. Shld I buy a hse with all I got or set aside some money for college for my two kids. I dont think I can get a mortgage cos I am not working. We are renting now. Pls adv on what I shld do?

{"commentId":3608201,"threadId":"364350","contentId":"1896008","authorDomain":"sheriblair"}

#17 - Tue Oct 21, 2008 12:24 PM EDT

{"commentId":4169033,"authorDomain":"trothermich"}

terry-740501

Hello there. Thank you for helping us. I have what I think (hope?) are 2 simple questions. I am 62 years old...fyi. (1) Should I kick in extra $ on my monthly mortgage payments or put that extra $ into my pension Benefit Accumulation Account (easy access; liquid; previous average interest over past 10 years was 8%+; current $ in the account is $65,000...bought house in Nov. 2004. In 2008 paid off the Home Equity Loan of $12,000. Current mortgage is $60,940, 30-year fixed, 5.625% interest. I have only $200 in Credit Card debt and no other debts except a student loan for my son at 3% interest (about $12,000 left on it to pay).

(2) I have a "Bonus Dex Elite Annuity" (tax deferred) with Alliance Life. 50% in S & P; 50% in Interest Earning Value. Total current value $26,352.15. As of Nov. 13, 2008 the "end year annuitation value is $26,350 and the "end year surrender value" is $21,266. 2008 interest was 3.74%. I initially put $21,000 in in 11/03. Question: Should I close this, take the $ out, and put it into my "Benefit Accumulation Account" (see #1 above) with my pension fund organization, or should I leave it in?

THANK YOU very much for any advice you might offer. Best wishes, Terry

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#18 - Sat Nov 22, 2008 3:05 PM EST

{"commentId":5571258,"authorDomain":"alexkk"}

Alejandro kalimanos

Hi Carmen

I am in construction business and my business goes bad. I build a house to sell but no luck. I talk to the bank to help me by doing loan modification but they said no because i make gross good money even i lost money in both last years. I hire an attorney to help me with that. the same time i hire an attorney to file bankruptcy (Chapter 7). I am bihind 4 payments in my house and the BK attorney said we need to wait for the loan modification. The other attorney said that we need to file together. Who is wright. I am comfuse.

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#19 - Wed Feb 25, 2009 8:43 AM EST

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