Month: February 2016

7 Creative Ways to Teach Kids About Money

As parents, we worry about everything that affects our children, from their health and safety to their education. While the ABC’s are important, what about financial literacy? Whether it’s oversight or avoidance, few parents talk to their kids about money — a choice that can cause problems later in life. Don’t limit your offspring’s abilities. Start early by utilizing the following teaching methods. Begin by:

  1. Creating a mandatory investment plan. Many parents never teach their kids how save or invest for the future. Choose a different path by taking 20% of your child’s earnings—birthday money, paper route salary, etc.—to help him invest in an IRA or other savings vehicle. Help them track its progress as they grow up and decide how to use the cash as they mature. Instilling this habit will also lessen the pains of saving for emergencies and retirement.
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Interest Rate Increase: How Does it Affect Credit Cards (and Me)?


In December 2015, the Federal Reserve made the long-awaited decision to raise interest rates for the first time since the economic crisis. The move signified economic growth and increased market confidence in the United States, and rates are expected to rise by 0.25-0.5 percent. While the change is good news for the country, consumers have questions. How will this change affect me? What will happen to my existing accounts, specifically, my credit cards? Read on for the answers and learn more about how shifts in consumer credit could affect you.

As the federal interest rates increase, you’ll likely see changes in the following areas:

  • APR and minimum payments. Consumer credit is a short-term debt, which means that it ebbs and flows with the federal interest rate. An uptick in one leads to an increase in another, and it’s prudent to expect a rise in your account’s APR in the months ahead. According to The New York Times, “Short-term rates will rise by about one percentage point a year for the next three years, Fed officials predicted.” With this change also comes an increase in the minimum payment required each month, a consequence that could negatively affect your budget.
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How to Spot Illegal/Unethical Credit Repair Companies


Unfortunately, many credit repair companies try to snare consumers by offering credit repair through illegal or unethical tactics. Credit repair companies themselves are not illegal — in fact, they offer a valuable and much-needed service to many Americans — but they must abide by certain rules and laws if they are to be trusted.

The Credit Repair Organizations Act (“CROA”) is a federal law that protects consumers from unfair and deceptive practices by credit repair organizations. Many states also have their own laws that regulate credit repair organizations. A credit repair organization that engages in practices prohibited by CROA is likely unethical and should not be relied on for your credit repair needs.

How can you spot an illegal or unethical credit repair organization? If you see an organization engaging in one or more of the following illegal practices, then chances are the organization is violating CROA and should not be trusted.

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What Affects Your Credit? Student Loans.

The attorneys at Lexington Law Firm are experienced and can help you move forward with your credit situation. One of those credit situations may arise when handling your student loans. Contact Lexington Law Firm today to find out how we can help you with your credit situation.


Related Articles: 

What Affects Your Credit? Divorce.

What Affects Your Credit? Identity Theft.

What Affects Your Credit? Medical Expenses.

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How Higher Rates Will Affect Your Home-Buying Power


First-time homeowners and seasoned real estate investors alike often cringe at the idea of all the work and preparation that goes into purchasing a home. Good credit is almost always a requirement for lender consideration, but thanks to a recent increase in interest rates initiated by the Federal Reserve, potential homebuyers will need to be sure they are in good financial standing to qualify for their dream homes. With higher interest rates, competition for mortgages will be steeper and lender requirements even more important.

Federal rate changes have the potential to change how consumers access credit cards, savings accounts and loans of all types, but according to NBC News, homebuyers should not rush into any purchase agreements to take advantage of current rates.

Peter Lazaroff, director of investment research at Plancorp, a financial service firm, advised against hastened decisions, saying, “homeowners should not accelerate or decelerate their purchase decisions based on a market forecast.”

“All markets, including interest rates, are forward looking. That means that debt prices have already built in expectations for slightly tighter monetary policy,” said Lazaroff.

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