"Carrots offered, sticks abandoned: Card issuers lure late payers. Are cards that target high-risk customers right for you?"

See more here:

 www.creditcards.com/credit-card-news/car...

Banks need debtors Make no mistake, the banks have not  come up with these products out of the kindness of their hearts.  Balance-carrying customers are the bread and butter of the credit card business.  Issuers are looking for ways to hook them and to minimize the risk of  delinquency at the same time.

"These unique features are a direct reflection of new financial regulations  set by Congress, which limit the ability of vendors to boost their revenues and  bottom line by making significant profits off delinquent customers," says Jon  Ulin, managing principal with Ulin Financial, a private wealth management firm.

Banks used to be able to make money off late payers by jacking up interest  rates as soon as a cardholder missed a due date. "If you were even a day late  making your monthly payment ... you immediately got your rates wacked up close  to nose-bleed 30 percent levels, with no further negotiation to fix -- even if  you had been paying your bills on time," says Ulin.

The CARD Act of 2009 prohibits such rate hikes until a cardholder is 60 days  or more behind in payments. But even if banks don't charge immediate penalties  to late payers, they're still benefiting from loans that are growing on their  books. You may not be charged interest initially, but once you get past that  introductory period, interest rates are as high as 23.99 percent. That's why  banks are marketing cards that appeal to higher-risk customers.

Please click here to read my interview this week on "Money Fix: Downsizing in retirement."

www.newsday.com/business/money-fix-downs... 

Cheers,

Jon

In a recent Fidelity Investments survey a record number of people -- 46 percent of those polled -- said they are considering financial resolutions. Most vow to save more, spend less and pay off debt. What's on your list? Better still, what should be on it?

Dig out of debt. In this post-financial crisis era, this is priority No. 1, says Jon Ulin of Ulin Financial in Boca Raton, Fla. Create an action plan and timeline for paying your credit card debt as soon as possible. Defer any "instant gratification" purchases until you can pay for them with cash.

See more here

www.newsday.com/business/money-fix-finan...

Jon Ulin, CFP

Ulin interview:

Before you jump into the markets, take the time to learn from the missteps of novice investors. Here are three common first-time investing mistakes.

 Read more: www.foxbusiness.com/investing/2012/05/07...

www.foxbusiness.com/investing/2012/05/07...

blogs.smartmoney.com/advice/2011/12/23/c...