Black Scholar Boyce Watkins Gives Financial Challenge

By Dr. Boyce Watkins

www.DrBoyceMoney.com

In case you weren’t sure, credit card companies are not out to help you. If you are financially illiterate and uninformed, they are going to exploit you. If you are worried about the financial crisis, they are going to prey on your fear to get money out of you. They are also doing exactly what the rest of us are doing: trying to remain protected in a fragile economy.

The stimulus is stymied. The bailout is a failout. The stock market has consistently given a “thumbs down” to every piece of legislation passed in response to this crisis. Our economy is like the sick man who won’t respond to antibiotics. While the results of the latest package are yet to be seen, the truth is that no one is sure what will work. Every company is out to protect their assets and hold on to their cash, which means they no longer have much interest in loaning money to you.

Yes, this is true even if you have a good credit score, which is the ironic part.

Customers are opening their monthly statements to find that credit card companies have started to either ration credit (give less of it) or raise the interest rate being paid on outstanding debt. This doesn’t even count all the dirty tactics used, like using your payments to pay off low interest debt first, quietly getting rid of the grace period or charging interest on your balance from the prior two months vs. the current one. Even when you’ve been making payments on time for years, banks keep raising the bar to maximize shareholder wealth. When liquidity is scarce, those giving out water demand a higher cost per bottle. Additionally, higher default rates have justified the increase in interest rates, but higher interest rates increase the likelihood of default. It’s a nasty cycle, really.

Lawmakers are trying to intervene. Congressional hearings have taken place. Banks are being scolded by senators who keep telling them that this form of business practice is unethical and that they are gouging the American consumer. All this might be true, but what is also true is that you can’t force banks to loan you money. Also, it is very difficult, if not impossible, to legislate a strong economy.

If you have a less than stellar financial history, there is an even greater opportunity for your credit card company to raise your interest rates. If you have defaulted on other loans or are a slow payer in other areas, then they have no problem telling you to pay up or ship out. The days of easy money are long behind us, and companies are dramatically shifting their business practices.

The bottom line is that THEY’VE GOT YOU. They know that you’ve become addicted to the debt they so readily offered in the past, and this debt has become the lifeblood for the lifestyle to which you’ve chosen to become accustomed. They know that they can charge you a higher interest rate because you can’t do anything about it. Like a drug addict who is angry about paying more for his product, you really don’t have any other choice.

Well, maybe you do.

Here is one solution: tighten your economic belt. That means putting together a financial fitness plan today that consists of getting rid of as much debt as possible. I’ve mentioned in prior articles and on our website that paying off debt can be one of the best investments you make with your money. This is especially true if you have a stable job and are paying a high rate of interest to your credit card company.

So, the Dr. Boyce Challenge for this month is simple: Create a budget which includes the steady elimination of credit card debt. That means you should list every single expense you have for the entire month on one piece of paper or a spreadsheet. Don’t leave anything out. Count the money you want to use for getting your hair done, your nails, paying your mortgage, car note, whatever. Count everything. That will be your first step toward obtaining financial fitness.

As you create the budget, allocate at least 10% of your monthly after tax income toward reducing credit card debt. So, if you earn $3,000 per month after taxes,$300 per month should be allocated toward removing credit card debt, not including interest. So, if you owe $5,000 in credit card debt, you can remove this debt in roughly a year and a half. While $300 may seem like a lot of money to find in your budget, it’s there if you look hard enough. In fact, if you spend $10 per day on lunch and/or coffee, you can find the bulk of the money by taking your lunch to work. Make this one of the first bills you pay, not the last. The last bill is the one that only gets paid half the time. It’s easier to negotiate with creditors if you don’t need them so much. Take small steps toward finding your financial freedom.

Next month, we will move to step 2 of the Dr. Boyce Financial Challenge. While I confess that this change won’t be easy, I can promise that it will be worth it in the end. Be strong and remain focused, this is your opportunity to shine.

Dr Boyce Watkins is a Finance Professor at Syracuse University and author of “Financial Lipo 101: From financial fat to fitness”, to be released in April, 2009. For more information, please visit www.DrBoyceMoney.com.

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Roland Martin Checks Obama on Diversity

Roland S. Martin, CNN

A lot of media outlets made a big deal out of the mostly white White House press corps covering the first black president, and those stories were worth pursuing.

All of us in the business know full well that those are considered plum jobs and are steppingstones to greater things.
But while we hold the media accountable for the need to diversify their ranks, it’s quite telling to see the lack of diversity in the White House’s press office.

I got an e-mail Tuesday listing all of the various press folks and contact information, and hardly any African-Americans or Hispanics were listed. Granted, the deputy press secretary is African-American, and the director of broadcast media is Hispanic. But that’s not sufficient.

Unfortunately, this shouldn’t come as a shock because the campaign press staff of then-Sen. Barack Obama was just as weak on diversity.

Just because there is a black president doesn’t mean that diversity should be cast aside. President Obama should be held to the same standard when it comes to this issue as any other occupier of that office. I am a former national board member of the National Association of Black Journalists, and my support for diversity never wavers, no matter who is running the show.

One of the reasons this is important is ��” just like in the media, where there are bigger and better things awaiting White House correspondents ��” a position in the White House press office positions someone for the next level.

Click to read.

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Liberians Fight to stop Deportation

There is a deep sense of anxiety these days in Liberian community all around the United States. About 10,000 Liberians could face deportation come march 31, this year when a temporary protection status that allows them to stay here expires unless President Obama or Congress intervenes. The U.S. government contends Liberia is now a stable country and these migrants should return home.
Liberians have lived in the U.S. since the early 1990’s under a temporary protected status. Now that the Liberian government is showing some signs of stabilization, the U.S. government is trying to lift the temporary protected status and deport many of the 20,000 Liberians who are now living in the U.S.

I watched in complete disbelief Dan Stein, president of the Federation for American Immigration Reform on CNN talking about how "It is time for people to go back and rebuild their country,"He said for Liberians to stay when their country is at peace would be an abuse of U.S. hospitality.

"It makes a mockery of the concept of short-term temporary humanitarian protection." he went on to say.
I would like to point out to Mr Stein however,that the State department own travel advisory is warning Americans to avoid travel to the country, because of serious security concern. so my question is, if its not safe for Americans to go there, how is it safe for thousands of Liberians with their U.S born children, who are U.S citizens to go there?

Click to read more.

 

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Release: Sri Lanka Government Terrorizing Its Citizens? – Barack Obama Should Stand Up

Dear friends:

I am overcome by the following news from Sri Lanka that more than 100,000 of my people are sandwiched between the Sri Lankan government and the Tamil militants.  http://tamilnet.com/art.html?catid=13&artid=28378

It is a pity that we hear very little in our media about potential human tragedies of this magnitude.

Although not a poet, I have written this poem to express my feelings and to awaken the conscience of the international community.

Please pass this on to people who may be able to do something to save the lives of these innocent civilians. 

Tamil people and a Silent World

When their rights were being taken away, the world was silent.

When their land was being colonized, the world was silent.

When their protests were being ignored, the world was silent.

When their politicians were being expelled, the world was silent.

When their press was being crushed, the world was silent.

When their ladies were being raped, the world was silent.

When their loved ones were being abused, the world was silent.

When their leaders were being bought, the world was silent.

The world was willing speak only after matters reached the two extremes:

The world expressed their sorrow after their people were massacred in 1983.

The world expressed their anger after their youth spoke back with violence.

Of world, do you have eyes to see only the violence of their youth?

Don’t you have eyes to see the prejudice of their government?

Oh world, do you have ears to hear only the lie of their government?

Don't you have ears to hear the cry of the Tamil people?

Oh world, won’t you speak while the Sri Lankan Tamil people are still alive as a people group?

Do you have to wait for another massacre to break your silence?

Alex Thevaranjan

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Rev. Jesse Jackson Presents Educational Stimulus Plan

By Rev. Jesse L. Jackson

www.YourBlackWorld.com

One of the most impressive proposals advanced by President Barack Obama to aid college students is the creation of a new American Opportunity Tax Credit worth $4,000 in exchange for 100 hours of community service. While that program is still in the developmental stage, the Rainbow Coalition offers a plan that will immediately benefit students holding college loans.

We're calling it "The Rainbow PUSH Education Stimulus Plan." It is a simple-yet-sweeping plan to help families finance college costs that are steadily putting higher education out of the reach of most Americans. Our proposal is that students holding and applying for college loans should be offered interest rates that do not exceed 1 percent – the same favorable terms now being offered to large corporations under the federal bailout plan.

What we are seeking is fundamental fairness. Our nation's largest banks and financial institutions – including Bank of America, Citigroup, and JP Morgan – are borrowing money from the federal government at a rate of less than 1 percent. However, students are generally forced to borrow for their education at rates in the range of 4 percent to 8 percent. Many are financing their education with credit cards that carry rates of 20 percent or higher

Before graduating seniors can launch their families and careers, they are already saddled with excessive debt. To make matters worse, if students miss payments in this fragile economy, their credit score declines, forcing them to pay the highest interest rates for cars, homes and other necessities -- if they can qualify at all. Yet, financial institutions with what is tantamount to bad credit reports are being rewarded with tax-supported, low-interest loans.

Lowering student loan interest rates to 1 percent directly addresses affordability, one of the most pressing problems facing our country. According to a report issued by the National Center for Public Policy and Higher Education, the cost of attending college has risen nearly three times the rate of the cost of living. After being adjusted for inflation, college tuition and fees rose 439 percent from 1982 to 2007, far outpacing increases for medical care, housing and food. During this same period, median family income rose 147 percent.

As financial aid shifted from direct grants to loans, borrowing for higher education has more than doubled over the past decade. Meanwhile, the U.S. is falling behind in the global economy. Approximately 34 percent of young American adults are enrolled in college, putting the U.S behind Korea – which has a 53 percent rate – Hungary, Belgium, Ireland, Poland and Greece.

Moreover, by the year 2020, the United States will need 14 million more college-trained workers than it will produce, according to the National Center on Education and the Economy. A report issued by the Metropolitan Center for Urban Education at New York University observed, "We are losing ground and jobs to other countries – for example, China and India. Our nation's ability to sustain long-term economic success increasingly depends on the very children we are not educating now."

And the children we are not educating are mostly people of color. Every year, 1.2 million children do not graduate from high school. Of those, 348,427 are African-American and 296,555 are Latino. College graduation rates are equally dismal. Only 31 percent of Latinos and 48 percent of African-Americans complete some college, compared to 62 percent of Whites and 80 percent of Asians.

If we are to increase the college graduation rate for African-Americans, we cannot ignore economic inequality:

* The total median income for a White family was $64,427 in 2007. The total for a Black family was $40,143, according to U.S. Census Bureau data.

* The U.S. Bureau of Labor Statistics reports that 6.1 percent of the overall U.S. labor force was unemployed in the third quarter of 2008; 11.4 percent of the Black labor force was out of work. Those figures are considered conservative by most economists and do not include discouraged people who have quit looking for work;

* 10.6 percent of the White U.S. population in 2007 lived below the official poverty threshold ($21,000 for a family of four), compared to 24.4 percent of the Black population, the data said.

Affordability takes on larger significance when one considers that the average annual cost of attending an in-state public university is $17,336. The figure for private universities is $35,374 per year.

The report from the National Center for Public Policy and Higher Education found: "On average, students from working and poor families must pay 40 percent of family income to enroll in public four-year colleges. Students from middle-income families and upper-income families must pay 25 percent and 13 percent of family income, respectively."

As we can see from the foregoing data, the issues of college affordability and access to higher education are inextricably linked to the very future of our nation. Placing a 1 percent cap on college loans will remove a major obstacle for millions of students who want to attend college but can't afford it.

Rev. Jesse L. Jackson is president and founder of Rainbow PUSH Coalition.

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