Debt-Driven Consumption – It Won’t Be Stopped

June 15, 2009 by  
Filed under Debt and Credit

All of the talk in Washington about financial reform is just that: talk.

The Obama administration wants radical change in the way that financial institutions are regulated. But that will not happen because well-entrenched political interests won’t let it. Read more


Beware the Cash-Out Re-Fi

November 28, 2008 by  
Filed under Loans and Borrowing

This has been a good news week for homeowners looking to re-finance their mortgage loan into a lower rate.  Mortgage interest rates fell sharply this week following more rescue actions by the government.  The average interest rate for a fixed 30-year mortgage loan dropped to under 6%, a seven week low.   Mortgage loan re-financing activity has already picked up.   Unfortunately, re-financing a mortgage loan also creates a substantial risk that the borrower will end up with a larger loan balance.  Read more


Meet Your New Friends …. Same as Your Old Friends

November 5, 2008 by  
Filed under Economics

Mr. ToughMoneyLove has voted in elections since 1968.  In 1971 The Who (remember them?) released my favorite of their songs, “Won’t Get Fooled Again.”  I think of that song each election night, particularly the last lines: Read more


Ten Warning Signs of a Normal Financial Life

August 13, 2008 by  
Filed under Money and Behavior

If you ever listen to Dave Ramsey, you know that he acknowledges that what he teaches is “abnormal” compared to the “normal” financial behavior we see engaged in by a substantial majority of American consumers.  I don’t agree with everything that Ramsey preaches but his statements about normal financial behavior ring true to me.

So, I have compiled my own list of ten signs or indicators that someone is engaged in bad financial and money behaviors that are now, unfortunately, considered normal.  These are not in any particular order of significance.  You may have others to suggest.
Read more


How to Respond if a Family Member asks for a Loan (Part 2)

In part 1 of this post, I discussed the tough love options (and reasoning behind those options) available to a family member when another family member asks for a loan. In this part 2, I want to cover a further aspect of responding to a family member’s request for a loan. Read more