Posts Tagged ‘future’

Have you ever tried to read a piece of legislation only to ask yourself, “What the heck did that even mean?” Official decrees from Washington are notoriously verbose at the best of times. The latest credit card bill, the Credit CARD Act of 2009, is no different. Fortunately, the kind folks at CreditCards.com have created a far more user-friendly guide to understanding just what the credit card bill is all about.

The Credit CARD Act of 2009 multimedia guide breaks down each title, section and legislative reference into digestible chunks just about anyone can understand. The guide also allows credit card holders to find the sections that apply to them directly through an easily navigable list of subtopics.

A multimedia breakdown of the Credit CARD Act of 2009 is ideal for this credit card bill because, let’s face it, the same text pasted into a PDF document would be almost as difficult to wade through as the legislation itself. By designing the guide with clickable links and breaking down the text into terms, quotes from politicians and even links to related stories, the site ensures that consumers will not be overwhelmed by impenetrable text. Even better, CreditCards.com has also included the original text of the Credit CARD Act of 2009, so those who believe in thorough research will be able to relate the simplified information to the transcript of the law.

Credit CARD Act of 2009 Multimedia Guide: A Closer Look

The major sections of the credit card bill are broken down into five simple headings:

• Rates, terms and fees
• Youth and credit
• Disclosure
• Studies
• Other

Each of these is further divided into numerous subheadings to help you navigate the text.

Many are unfamiliar with the jargon of the credit card industry — from double-cycle billing to grace periods — terms that the Credit CARD Act of 2009 understandably references frequently throughout its text. Naturally this means many consumers are unable to understand the credit card bill even if they can manage to wade through the wordy transcript. Fortunately, the multimedia breakdown of the Credit CARD Act of 2009 defines all of these terms as you roll your mouse arrow over each one.

This type of legislation affects everyone differently, depending upon spending practices and credit history. This handy tool can help consumers understand the Credit CARD Act of 2009 and, more importantly, comprehend what the credit card bill means for them.

Now, if only someone would do this for every other piece of national and local legislation, perhaps there would be a better understanding of our government throughout our great land.

Steve Thompson

Going to college is the first step towards independence for many young adults. Many attend colleges in their home state, living on their own in dorms or apartments. During these college years a student’s main concern should be on studies and how to pursue a career upon graduation. Unfortunately, rising debt lurks in the shadows for many of these students and when they graduate, the harsh reality of this debt brings puts a tether hold on some of their plans and goals.

College Debt

It used to be that credit card debt was the big culprit for the debt college students had upon graduation. However, with the Credit Card Act of 2009, that debt won’t be a factor. But the debt of college students will still be as high as before and some instances higher. In recent years college students have been borrowing more money than they ever have in the pursuit of higher education. So many students’ borrowing has increased to keep up with the costs of rising tuition.

Tuition Hikes the Main Culprit

There used to be a time when a person entering college fresh out of high school only needed to take out a college loan for a couple of thousand dollars each semester. However, with the cost of tuition rising significantly each year, students are borrowing twice as much just to pay for an education. In fact, college tuition hikes have passed the rate of inflation. According to the College Board, between the years of 1999 to 2000 and 2009 to 2010, college tuition has increased at an average annual rate of 4.9 percent over the general rate of inflation.

Life-Altering Effects of Increased Student Borrowing

Federal Direct and Stafford loans typically give graduates a six-month grace period before they have to begin repaying their loan. However, with the current economic situation and unemployment still high, finding good paying jobs is becoming difficult for some. Even when a decent-paying job comes along, plans such as getting married and purchasing a home are put on the back burner, as graduates find themselves living paycheck to paycheck.

There may not be a way to avoid borrowing for college tuition. However, if college students are made knowledgeable about how student loans affect their lives after college, they can be better prepared to handle the debt. Financial education on debt and borrowing can benefit students a great deal and help them develop a plan to handle the debt college tuition helped them to accrue.

ShawnTe Pierce

Twitter creator Jack Dorsey may have just revolutionized the credit card industry with a piece of plastic the size of a sugar cube. Called Square, the little device will soon allow anyone — not just businesses — to accept credit card payments on their Apple iPhone or other mobile device.

How it Works

Square works by plugging into your mobile device’s audio-in jack. Run a customer’s credit card through Square’s card reader and it uploads the credit card information to a central database for approval. Receipts can be emailed to customers instantly.

Currently there are only 100 or so Squares in existence, as the company is running a pilot program for the service in Los Angeles, San Francisco, St. Louis and New York. But as Square (the company) starts to ramp up operations, these little plastic devices may soon become ubiquitous, as the limits on accepting credit cards quickly fall away. Most paradigm changing of all: Merchant accounts are completely unnecessary with Square.

Why it Matters

There are certain advantages Square has over the traditional credit card swipe machines and the very infrastructure of credit card administration today.

1. Square is simple to use. All you need at the moment is an iPhone, though soon the Square will work on several mobile communication devices. To use Square to accept a credit card payment, all the merchant or private citizen needs to do is swipe the card and input the dollar amount. The software does the rest, sending the information to the secure Square Web site, which processes the transaction.

2. Square is secure. No information is ever stored on the iPhone, and all data that is transmitted from the iPhone to the Square Web site is heavily encrypted.

3. Square is inexpensive. Even factoring in the cost of the iPhone, vendors will still come out ahead when compared with the cost of credit card swipe machines and credit card merchant accounts. With Square, the device itself is free, while the software may have a minimal cost of around $1. Square — the company — makes its business profitable by taking a small percentage of each transaction.

4. Square is for everyone, not just merchants. Dorsey envisions not only retail outlets, but also individuals using the Square for payments. Owe a friend money? Just enter the information into Square, and the money is on its way. It is also perfect for mobile vendors such as roadside stall keepers, farmers markets and other businesses where a wireless credit card terminal would be too much of an added expense and a traditional credit card terminal impractical.

Square makes everyone capable of accepting credit card payments, and makes it fast, simple, secure and inexpensive while it’s at it.

Eric Fleming

At the beginning of the credit era, consumers used charge cards. Charge cards allowed people to make purchases with convenience, but charge cards had to be paid off in full at the end of the billing period. This relic of a bygone era may actually be helpful for consumers who are taking a second look at debt incurred by credit cards and looking for a new way of doing things.

Advantages of the charge card

With consumers turning increasingly to frugality in their daily lives, taking “staycations” instead of going long distance, eating out less and concentrating on building up savings and decimated retirement accounts, a charge card could be the ideal solution. Here are some of the advantages associated with using a charge card:

• No credit limit
• Fewer fees (avoid overdraft fees that can come with debit cards and over the limit fees that come with credit cards)
• Less chance of carrying debt, since the balance must be paid regularly
• The convenience of using plastic to pay
• No need to worry about reloading the card (and the fees that come with it)

Drawbacks to the charge card

Of course, there are some drawbacks to using a charge card. The low fees and favorable terms do come with an annual fee. However, this is often low enough that you can easily afford it–not to mention the fact that it is often lower than paying the fees (interest, etc.) that come with credit cards. Another downside is that American Express, which is the main charge card network, is not as widely accepted as credit card networks run by Visa and MasterCard. And, having to pay off the balance each month means that buying things you can’t afford right now is not really an option. But perhaps that is an advantage; you are forced to wait and make sure you can pay for what you purchase.

In the end, you have to assess your financial situation and needs. But you might be surprised to realize that a charge card might be the right fit.

Jean Marquit

Trips to Europe might get a bit more complicated for Americans if European financial institutions have anything to say about it. American Banker reports that the chairman of the European Payments Council, Gerard Hartsink, has suggested that once a switch by European financial institutions to the EMV integrated circuit card is completed in 2011, a recommendation could be made to stop accepting magnetic swipe credit cards. This news could bode poorly for American travelers, who often use their credit cards to both withdraw spending money in local currency and to make purchases while traveling abroad.

Rather than using magnetic swipe strips on the backs of credit cards to read customer information, EMV credit card chip enabled credit cards are inserted into a handheld device. The customer then types in a four-digit PIN to confirm their identity. Deemed more secure than traditional credit cards, EMV technology is set to become the new industry standard throughout Europe.

While Europe has emphatically supported credit card chip technology, and all financial institutions will be switched to it by 2011, America has lagged behind, with consumers and retailers still utilizing magnetic swipe credit cards. Herein lies the issue for American travelers: If European banks choose to eliminate their support for magnetic swipe credit cards (current handheld machines in Europe have the capability to accept them), American travelers may need to find a new way to pay for things while overseas.

While credit cards with chips are hard to come by in the US, there are other options. A few prepaid credit cards offer PayPass—a chip system used by MasterCard. The Exact MasterCard is a prepaid debit card that offers PayPass as well as direct deposit.

Evidence of trouble between the EMV and magnetic swipe systems is already creeping up for some travelers. According to EuropeForVisitors.com, newer self-service machines at railroad stations in France won’t accept magnetic swipe credit cards. In addition, those traveling with magnetic swipe credit cards may have to explain their use to smaller retailers, something difficult to manage if a language barrier exists. While problems are relatively small now, expect them to expand once the EMV switchover is completed in 2011.

If you’re planning European travel between now and 2011, you should still be able to use your traditional magnetic swipe credit card. However, a phone call to your credit card company may give your more insight, as these issues are certainly set to take center stage for them within the next two years.

Kelly Herdrich

Good Careers in a Bad Economy, Part 5

As teens and young adults pursue good careers in a bad economy, they will be told that their quests will be difficult.

Some analysts will inform them that they can’t really get anywhere without a college degree. They will be told that the world has gone from making things and doing things to a high-tech global information society. In short, things have completely changed.

After all, this is the worst economy, with the worst career prospects, since the Great Depression. The U.S. Bureau of Labor Statistics reported an unemployment rate of 8.1 percent at the end of February 2009, up from 4.8 percent a year ago, and could be heading toward 12 percent or more.

What’s a young person to do?

Career counselors Bob Rosner and Sherrie Campbell on Payscale.com encourage a back-to-basics approach. They assert first that while the economy is changing, there still is demand for traditional jobs, and that not all of them require four-year college degrees. They add that no matter what, you must “Stay positive during a recession.”

Make a Plan and Stick With it

The process of planning for a good career — both in a bad economy or a good one — starts with the basics of taking pen and paper and mapping a step-by-step plan. Or nowadays, a computer screen will work just fine.

Good Careers in a Bad Economy
Part 1: Graduating in a Recession
Part 2: According to the March 2009 Bureau of Labor Statistics
Part 3: Potential Careers Arising from the Stimulus Bill
Part 4: Career Forecast: Look for Overlapping Opportunities
Part 5: Career Planning: The More Things Change, the More they Stay the Same

First, make a list of careers that are of interest to you. Don’t concern yourself with the bad economy. You can whittle down your list later. And, as outlined in the first report of this series, you can pursue a dream career and a more realistic recession-proof career at the same time.

Dare to dream. Have your eye on star athlete or entertainer, corporate chief executive, “green” energy entrepreneur, heart surgeon, even president of the United States.

Explore more down-to-Earth careers. Think school teacher, carpenter, nurse, mechanic, insurance representative, police officer. Most jobs, in spite of all the global economy talk, are still old-school jobs. Society still needs food and shelter, public schools and public safety, health care and transportation.

Think of overlaps to broaden your prospects. For school teacher, write “educator” because who knows, you may become the superintendent of schools. For carpenter, put “contractor” because you just might start your own company.

Think of career cousins. Career counselors Rosner and Campbell describe “career cousins” as careers that are similar. If you have dreamed of being a teacher, for example, you might also find an interest in social work.

Once you have made your big list, pick two or three options for careers. Explore the book studies and/or training programs that are required. You’re not alone, because virtually all schools and training programs have career counselors. Find a good one and keep in regular contact.

Cope With the Cost of Education and Training

The pursuit of a good career in a bad economy, or any economy, requires more than good intentions. A young person also needs resources.

Members of today’s up-and-coming generation face a challenge. According to the National Center for Public Policy and Higher Education, 47 percent of households say their children can’t afford to go to college.

Policymakers are aiming for reforms. Some state governments are rewarding publicly-funded universities that hold tuition in check. The new American Recovery and Reinvestment Act, otherwise known as the $787 billion economic stimulus package, includes $2,500 college-cost tax credits for this year and next year.

Community colleges are a lower-cost option for getting started. Many professions, ranging from building trades to nursing, do not require four-year degrees. Furthermore, most students who achieve those so-called four-year degrees actually invest more than four years; six years is the average, with breaks taken to save money for the next round of tuition.

Students this year will receive a combined $143 billion in grants and loans, according to the College Board. Some 38 percent of full-time students will pay less than $6,000 a year, but super-elite schools drive up the overall average. The College Board is among many scholarship search sites.

Pursuit of a good career requires hard work. Pursuit of tuition for college or training is the same.

Remember that at some point in society’s chain, there is a link to fill that is essential. Try to find a career link that you will enjoy.

Michael Thompson

Good Careers in a Bad Economy, Part 4

Much is said of the “green” environmental movement providing good jobs in a bad economy. Therefore, a young person might perceive that working in the energy field is an either-or proposition. Either you ride the wave of the future by studying solar or wind power or fuel cells, or you concentrate in the traditional fields of oil and gas.

Not necessarily. A great deal of overlap exists. Besides, alternative energy will take years to develop. Even the most optimistic plans call for utilities to generate only 20 percent or 25 percent of their energy from alternative sources, often with a target year of 2015 or 2020. There still will be plenty of oil, natural gas and coal to burn until at least the middle of the century.

More Career Overlap Potential

Consider small business, which is regarded with gloom and doom in many circles because of the bad economy. What if an entrepreneur were to overlap a small business into an international business? According to the U.S. Department of Commerce, small companies provide 96 percent of export volume. As noted on www.myownbusiness.org, America offers 300 million potential customers; the planet, 6.5 billion.

Or how about law enforcement? In the age of terrorism, law enforcement no longer stops at America’s shorelines. There is so much international overlap, creating so many job opportunities, that even the FBI and the CIA have taken the unusual steps of recruiting applicants with ad campaigns. The CIA pitch states, “Consider the global employment opportunities at the CIA. We’re looking for a diversity of people for the important job of keeping America safe. This includes Clandestine Service Officers to be on the front line of human intelligence. Plus, individuals skilled in science, engineering, technology, analysis, foreign languages and administration for positions in the United States and overseas.”

In science and technology, analysts often assert that America must gear up for global competition. This is true, but again there is a career overlap because America also is part of a move toward international cooperation. Just one prominent example is the International Space Station.

As young adults focus both on dream careers and recession-proof careers, they should look for these types of overlaps as paths toward opportunity.

Energy Careers Show Overlap Potential

Good Careers in a Bad Economy
Part 1: Graduating in a Recession
Part 2: According to the March 2009 Bureau of Labor Statistics
Part 3: Potential Careers Arising from the Stimulus Bill
Part 4: Career Forecast: Look for Overlapping Opportunities
Part 5: Career Planning: The More Things Change, the More they Stay the Same

A report for the Mother Nature Network Web site demonstrates how careers in the energy field need not be typecast into the traditional or alternative fields.

“Today’s most sought after solar positions are in installation, engineering system design, and sales and maintenance,” it states. “Lucky for you, lots of skills that are useful in the solar industry don’t require a background in solar power, or even renewable energy.”

On the labor level, individuals with blue-collar experience installing gas-fed furnaces might don green collars to install solar panels.

For professional positions, consider a major corporation’s recent job posting for “director of solar engineering.” The listed educational requirement is a bachelor of science degree in electrical engineering “or other relevant engineering degree.” In other words, the corporation was not looking for somebody with a specific degree in solar power.

Still, today’s young adults will find greater opportunities to tailor their education and training toward specific fields of energy industry employment. This is where a college student should establish a strong relationship with a trusted guidance counselor.

As MyGreenScene.com puts it, “University degree programs focused on renewable energy are starting to see the same growth that computer science programs did in the early eighties, and that means the new Energy Age is here.”

But the old Energy Age will still be here for a long time, too.

Michael Thompson