By KELLY GREENE from The Wall Street Journal Wednesday May 27, 2009
People who have lost their employer-provided health insurance because of a layoff, early retirement or other reasons are turning to a little-known strategy to get coverage: forming a small business, or using an existing one, to buy a group policy.
The strategy is used by groups as small as one person, and is particularly useful for people with chronic health problems -- so-called pre-existing conditions -- that insurers refuse to cover or that result in steep premiums. Group health plans, under federal law, are required to cover such conditions, as long as the individual doesn't go uncovered for more than 63 days.
Click on title for complete story from The Wall Street Journal
Friday, May 29, 2009
Tuesday, May 26, 2009
New Credit Card Rules take Effect in 2010
by Dorethia Conner, Personal Finance Coach ~ http://www.dorethiaconner.com/
The Credit Cardholder's Bill of Rights has been passed and I for one am applauding. It is long overdue in an industry that has run rampant far too long. I'm not negating the importance of personal responsibility when handling credit, but do understand that the carefully crafted sales pitches can convince even the financially savvy at times. I do not suggest using credit cards - for anything. With that said, I'm aware that 75% of Americans have credit cars and am glad there are some protections in place for them.
Credit card companies can no longer charge you to pay your bills by phone, online, or electronic transfer, nor can they raise interest rates for the first year. If a promotional rate was offered to attract consumers, they must offer that rate for at least 6 months. Any payments received over the minimum balance due will be applied to balances with the highest interest rates. Oh and no sudden increases in interest rates either, yes those little surprises have been done away with. Your interest rate can go up if you are 60 days past due on your bill.
Credit card companies can no longer charge you to pay your bills by phone, online, or electronic transfer, nor can they raise interest rates for the first year. If a promotional rate was offered to attract consumers, they must offer that rate for at least 6 months. Any payments received over the minimum balance due will be applied to balances with the highest interest rates. Oh and no sudden increases in interest rates either, yes those little surprises have been done away with. Your interest rate can go up if you are 60 days past due on your bill.
The fine print must be made clearer, a kind of 'truth in lending' clause telling you how long it will take to pay off the credit card if only the minimum payment is made. This allows consumers to see on paper the cost of using their credit cards. Issuers must send bill 21 days before due date and card issuers will have to provide information on consumer credit counseling and debt management services.
There are also no more over the limit fees - I bet this has the card issuers cringing and rightly so. I'm not a fan of credit, but there have to be consequences for breaking the rules or more rules will be broken - right?
Anyone under 21 must have signature of parent or someone else who will be responsible for debt. (Okay, huh? Really bad idea - let's show them how to start their lives off in debt and burden their parents as well?)
So how will credit card companies offset some of the money they will lose as a result of the new rules? Well the annual fee to have a credit card will make a comeback and fewer promotional rates and reward programs will be offered. I'm sure we will see other changes as well before this law takes affect next February. Cash is still King in my book!
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Contact Dorethia:
info@connercoaching.com or 800.962.2491
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