National Debt Clock

The National Debt Clock is a billboard-sized running total dot matrix display which constantly updates to show the current United States public debt and each American family's share of it. It is currently installed on Sixth Avenue (Avenue of the Americas) in Manhattan, New York City.
The idea for the clock came from New York real estate developer Seymour Durst, who wanted to highlight the rising national debt. In 1989, he sponsored the installation of the first clock, which was erected on 42nd Street close to Times Square. At the time, the national debt remained under $3 trillion but was rising. The clock was temporarily switched off from 2000 to 2002 due to the debt actually falling during that period.

In 2004, the original clock was dismantled and replaced by the current clock at the new location one block away. In 2008, the U.S. national debt exceeded $10 trillion for the first time, leading to press reports that the clock had run out of digits. Plans for an upgrade adding to the existing digits have been announced for 2009.
The original clock outlived Seymour who died in 1995, with Seymour's son Douglas taking over responsibility for the clock through the Durst Organization. As of September 2009, Douglas Durst's cousin Jonathan "Jody" Durst, with whom he currently shares a co-presidency of the company, is in the process of taking over the day-to-day operations as president. In an interview with The New York Times, Jonathan Durst has said that maintenance of the clock is planned "for years to come.
To view the updated debt of American economy and how much is the share of each American is? Please view this link:
http://www.brillig.com/debt_clock/
You can check it daily, it’s increasing daily. At this time each American is in a debt of at least $38,500
The electronic billboard hit its limit after US public debt rose above the $10 trillion mark for the first time on September 30th 2008.
As a temporary fix the dollar sign has been switched to a figure--the “1” in “$10 trillion”. The clock is currently marking the US federal government’s national debt at over $11 trillion.

-Ethan Howards-

Giving credit to airline credit cards

By Susan Glaser, The Plain Dealer

In case you missed it recently, Continental Airlines increased by $10 the fee for checking a bag on any flight purchased after Jan. 8.

The new fees are $25 for the first bag, $35 for the second, bringing Continental to the top of the heap -- tied with Delta and US Airways -- in the amount charged for checked bags. (If you pay online, you can save a bit -- $23 for the first bag and $32 for the second.)

What this means for air travelers: more people schlepping more stuff into the main cabin.

There is a better way. Elite frequent fliers don't have to pay the fees, and neither do holders of Continental Airlines Chase credit and debit cards.

I nearly got rid of my Continental Visa card years ago, annoyed by the $65 annual fee. I'm glad I kept it -- it saved me $80 when I flew to Florida for a cruise last month, and it'll save me $100 when I travel to the Sunshine State in March to visit my parents.

In theory, I believe in packing light. In reality, a family of four cannot travel for a week using only carry-on bags (and if we could, you wouldn't want to get stuck behind us during boarding as we attempted to smash our bags into the overhead bins).

I am no fan of the credit-card industry, but this card has paid for itself in more ways than one. It'll stay in my wallet until the airlines say my suitcase flies free.

-- Susan Glaser

As Wallets Open For Haiti, Credit Card Companies Take A Big Cut

As a massive human tragedy unfolds in Haiti, relief organizations are soliciting credit-card donations through their hotlines and websites. About 97 percent of these donations will actually make it to the designated organizations -- but the other 3 percent will be skimmed off by banks and credit card companies to cover their "transaction costs."

Thanks to this hidden fee, American banks and credit card companies are making huge profits -- somewhere in the neighborhood of $250 million a year -- off of people's charitable donations, according to a Huffington Post analysis.

Those profits rise sharply after major disasters, when humanitarian relief organizations such as Oxfam and Operation USA take in more than 85 percent of their donations via credit card -- and the credit card providers, with only a few exceptions, refuse to waive their fees.

Credit card companies have only been willing to waive their processing fee for charity once, Richard Walden, the CEO of Operation USA, tells the Huffington Post, and that was for the tsunami disaster of 2004.

"After the tsunami, we had thousands of donations, and American Express and I think one other company temporarily waived their fees. So if this thing ramps up, we'll try to get in touch with these banks and see if they'll waive the fee again for us."

Bowing to enormous public pressure in the United Kingdom after the tsunami, British credit card companies have pledged to "waiv[e] interchange fees for all cross-charity and disaster or emergency appeals," according to the UK Card Association website.

One notable exception to the rule in this country is Capital One bank. Through its "No Hassle Giving Site", the bank waives transaction costs for holders of its Visa or MasterCard cards, so that 100 percent of people's donations goes to their chosen charity.

"We are pleased to be able to donate these costs, and we believe this will generate customer loyalty and an enduring customer franchise," said Pam Girardo, a spokesperson for Capital One.

Ben Woolsey, director of marketing and consumer research at Creditcards.com, says the hidden processing fees tacked onto all credit card donations cover far more than the transaction costs, allowing the issuing banks, as well as companies like Visa, MasterCard and American Express, to generate significant profits off of online charitable donations.

"They certainly profit off of these fees," Woolsey said. "Charities are treated like any other merchant. The credit card company bleeds a few percentage points off each transaction; that's central to their business model."

Non-profits are reluctant to criticize the credit card companies that are providing them a crucial service because there is too much money at stake, and they have no lower-cost options because the four major credit card companies have a small monopoly on the industry.

Peter Larson, director of annual giving at the Washington Humane Society, said: "It's unfortunate that a portion of our individual contributions are eaten up by processing fees, but that's the nature of business. We have no choice but to use credit cards because without them, we would lose a great deal of money in donations."

Some charities are able to negotiate a lower processing fee than regular merchants, whose rates can run as high as 5 percent. Habitat for Humanity reports that it pays about 2.15 percent of its donations to credit card processing companies, St. Jude's pays about 2.5 percent, and all charitable organizations that qualify for American Express's "Giving Express" program get a 2.25 percent processing rate. But even these fees are far greater than the marginal cost of the online transaction.

"I have no doubt that millions and millions of dollars are being made off of people's donations, and it's extremely inefficient and wasteful," said Ken Berger, President and CEO of Charity Navigator, an independent charity evaluator. "It would be great if credit card companies could reduce their profit knowing its going to an organization with a mission to help people. They need to step up to the plate and take a lead role in voluntarily cutting their fees."

Spokespersons for Visa and American Express declined to say whether they would consider waiving their fees for the Haiti disaster, or for all charitable donations. But Bill Strathmann, CEO of the online charity portal Network for Good, says they won't: "The reason credit card companies don't waive fees for charities is that they have so many corporate partners who drive high volume through their system. A company like Walmart could say, 'Hey, you're giving them a bettter rate? Last I looked I was passing billions of dollars through your company.'"

According to Strathmann, whose company partners with Capital One to encourage cost-free donating, legislators may have to take the issue into their own hands.

"I've always wanted to take this to Capitol Hill," said Strathmann. "There was legislation that made charitable donations tax-deductible, and there's going to have to be similar legislation that either subsidizes those credit card fees for non-profits or bars the fees altogether. There's got to be a better model for encouraging donations."

Right now, the government's only role is to actually subsidize the credit-card skim; charitable donations are 100 percent tax deductible, even when only, say, 97 percent of the donation goes to charity.

Without a legislative solution, the only option for charities is to petition banks to voluntarily waive their fees.

"We don't want a corporate contribution from the other side of American Express, we want them to say to legitimate NGOs that they're waiving the bank fee," said Walden. "It's probably a good week to ask, because they're about to give out their bonuses."

Paying mortgage on credit card 'could lead people to lose their home' in UK

Homeowners who make their mortgage payments on a credit card have been advised against doing so by one expert as he states that it could lead to them losing their home.

Chris Jenkins, co-owner of the Homeowners Advice Centre, says that while some people may believe that paying their mortgage by any means possible is guarding against repossession, the fact is that eventually this credit will run out.

His comments follow recent statistics from housing charity Shelter, which reveal that more than one million people used credit cards to make their mortgage payments over the last 12 months.

Mr Jenkins describes the figures as "frankly terrifying" and advises that people who are doing this need to seek financial help as soon as possible.

"This short-term solution does not address the fundamental problems of monthly outgoings exceeding incomings," he states.

He adds that in the long term, paying their mortgage by credit card will eventually only add to people's financial problems.

Slash your credit card debt in four simple steps

We highlight four ways to help you tackle your credit card debt this year...

Paying off your credit card debt is your top financial priority for 2010, according to our recent research of more than 1,000 lovemoney.com readers. Mind you, it was also the top priority for most of you last year - but sadly, only 16% of you said you successfully managed to do this in 2009.
So to help more of you achieve your goal in 2010, here's how to slash your credit card debt in four easy steps.

Reduce the cost of your debt

If you've got a lot of debt sitting on your credit card following Christmas, and it's racking up a lot of interest, the first step you should take is to transfer that debt onto a 0% balance transfer credit card.
The top card to use at the moment is the Virgin Credit Card, which offers an interest-free period on all balance transfers for 16 months. So this means you've got 16 months to start making progress tackling your debt without worrying about paying interest.
Bear in mind that you will need to pay a transfer fee of 2.98%. You also need to try your best to pay off your debt in full by the time the 16 month period has come to an end - otherwise you'll be hit with an interest rate of 16.6%.
If you can't pay off the balance in full by this point, you need to switch to another 0% balance transfer credit card - but don't forget that this means you'll need to pay another transfer fee of around 3%.
However, if you have a lot of debt on your credit card and you know it's going to take a long time to clear, you could take a look at a lifetime balance transfer credit card instead. These handy pieces of plastic promise to offer a low rate of interest, for the life of your debt.
So this means you don't need to worry about constantly switching your debts about, because the deal won't expire until you've paid off the debt in full.
For example, the MBNA Platinum Credit Card Visa offers a market-leading interest rate of 5.9% fixed for the life of the balance transfer. So you can transfer over a balance from your existing credit card and be safe in the knowledge that you will only have to pay an interest rate of 5.9% until you've paid off your balance in full.
Just remember that you are still paying interest, so it's important you clear your debt as quickly as possible. And bear in mind you will need to pay a transfer fee of 2%.
Alternatively, if you'd prefer not to pay a transfer fee, you could plump for the MBNA Platinum Low Rate Visa. However, the interest rate is slightly higher at 6.7% and this rate is variable, so it could change before you've paid off your balance in full. You can find out more about this card in Use this credit card to slash your debts.
It's worth noting that all three of the credit cards mentioned above allow you to carry out money transfers as part of the deal - so you can transfer money from your credit card straight into your current account. You can then use this money to help pay off an overdraft, or a personal loan, for example.
Finally, it's a good idea to set up a monthly standing order for your minimum monthly repayment to make sure you don't forget to make a payment each month. If you do, you could be charged a fee, lose your 0% deal, and possible get a black mark on your credit record.

Get budgeting

If you're struggling to pay off your debt, the most obvious way to tackle it is to throw as much money towards it as possible.
But if you're feeling a little strapped for cash, this might seem slightly daunting. So a good idea is to sit down and draw up a budget. To do this, work out exactly what your monthly outgoings and earnings are by using a statement of affairs calculator or this budgeting calculator from the FSA.
Make sure you're really honest when you're doing this, and don't leave anything out. One way to do this is to register for online banking right here at lovemoney.com. This will allow you to log into all your bank and credit card accounts at once, and see all your transactions at a glance. You can then categorise your transactions so you know exactly what you are spending your money on.
You should then be able to work out whether you can make any cutbacks anywhere - could you reduce how much you spend on your food bills or socialising, for example? Or why not shop around to see whether you can get a better deal on your gas and electricity tariff? Adopt our goal to get help on lowering your household bills.
Once you've done that, start putting any savings you make towards your credit card debt. Read How to budget in five simple steps for more tips.

The snowball effect

If you can't manage to get all of your credit card debts onto interest-free deals, you need to adopt the method of 'snowballing'.
To do this, simply work out which of your credit card debts is charging the most interest - this is the debt that will grow at the fastest rate, so it's the one you need to concentrate on.
Keep paying the minimum monthly payments on all of your borrowings, but put any spare cash towards your most expensive debt. Once you've paid off this debt, put the extra money towards the next most expensive debt, and so on. Leave your interest-free debt until last.
By adopting this method, you'll find that you clear your debt far quicker.

Pay more than the minimum

As I mentioned earlier, it's important to remember to pay the minimum monthly repayment (MMR) on your credit card each month. However, minimum monthly repayments are usually set at a ridiculously low level - often as low as 2% of your total card debt.
This means it will take you a long time to pay off your balance - typically more than 15 years on £1,000 of debt. This also means your debt becomes much more expensive, as you'll be paying a lot of interest over that period.
So it's a good idea to set up a direct debit and pay a fixed amount on top of the minimum monthly repayment each month. That way you will pay off the debt far quicker and you won't have to pay as much in interest. You can find more about minimum monthly repayments in The dangers of minimum payments.
Don't forget, if you'd like further help paying off your credit card debt, lovemoney.com can help. First, adopt this goal: Pay off credit card debts. Next, watch this video: The cost of credit card debt. Finally, why not have a wander over to Q&A and ask other lovemoney.com members for advice?

How to Get a Credit Card

One of the most commonly asked questions we receive is "how do I get a Visa or Mastercard?"    If you're young with no credit history you need to create a credit history in order to get a credit card.  If you are older and have a bad credit history, you need to re-establish a good credit history by always paying your bills on time and keeping your debt-to-income ratio low. 

Millions of people established their credit rating with a department store credit card because it is much easier to get a department store card like Sears, JC Penney, etc., than it is to get a Visa or Mastercard. Unfortunately, department store credit card interest rates are outrageous, ranging from 21% to 33%. 

It is also relatively easy to get a gas card, such as Texaco, ExxonMobil, etc., but the problem with gas cards is that some of them don't bother to report your payment history to any of the major credit bureaus, which means you couldn't use the credit card to establish a credit rating in order to qualify for a Visa or MasterCard sometime in the future.  Gas credit cards also come with outrageous interest rates.

Once you get a department or gas credit card you need to use the credit card regularly and always pay your bill on time each month.  If you pay late even once you have seriously damaged your credit rating and won't be able to get a Visa or MasterCard, perhaps for more than a few years.  To avoid the high finance charges associated with department store and gas cards, always pay your bill in full each month.  Your entire purpose of using these cards is to establish your credit rating so you can qualify for a Visa or MasterCard sometime in the future, not to run up a huge amount of debt.  How long will it take?  Six months to a year for most people.  Just make sure they are reporting your payment history to your credit report.  If they aren't, you're wasting your time.

The basic qualifications to get any type of credit card are as follows: (1)  you must be at least 18 years old; (2)  you must have a job or income;  (3) you should have a checking account and a savings account just so you can check "yes" on the credit card application where it asks you if you have these accounts; (4) you should have a telephone in your own name; (5) your monthly expenses (rent, car payment, insurance, etc.) shouldn't eat up more than half of your monthly income.  To qualify for a Visa or MasterCard, one must usually have at least an annual income of $12,000 or $14,000.