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Weekly Spotlight:
GCF Bank proudly participates in the Gloucester County Cares About Hunger Food Donation Collection Drive. Drop off your non-perishable donations at any GCF Branch from February 22 - 26. Visit our Web site for a list of preferred items!
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A disturbing trend has surfaced in the wake of the topsy-turvy real estate fiasco. Throughout history, people paid their mortgage prior to budgeting for their remaining monthly obligations. When push comes to shove, you can find alternative means of transportation. You can eat hamburger more often than steak. But if you lose your home, where will you sleep at night? Keeping a roof over your head was considered number one priority.
Another rule-of-thumb has bit the dust. Today, more and more people are foregoing their mortgage payment in order to make their minimum credit card payment.
They have no choice. They can't risk defaulting on their last safety net. Credit cards are being used as emergency cash. They are the only option left to buy luxury items like food, gas and prescription drugs.
It's a simple matter for those who have watched their dream home turn sour. Plummeting property values have left their property below the existing mortgage balance, leaving them owing more than what it's worth. Why would you continue to throw money at a loss? It's fine if you have the time and resources to wait for the market to rebound. Not so for the millions unemployed or underemployed.
Even with the new credit card law coming into effect on February 22nd, relying on that plastic is risky business.
The new laws center around making credit card terms easier to understand. They'll also make it more costly to use a card, and render them inaccessible to low-income families and those with bad credit.
Providers will no longer be able to hike rates on existing balances except in limited situations, such as the end of a promotional rate, when the cardholder makes a late payment or the account rate is variable. Significant term changes cannot be made without 45 days notice. Interest rates on new transactions cannot change for the first year.
The practice of "universal default" is now limited. Card issuers were raising interest rates for customers based on their credit record with unrelated parties. They must now provide 45 days notice to do so.
Consumers now have the right to opt out of changes to terms on their accounts. By doing so, their account will be closed and they can continue to payoff their existing balance under the previous terms. They will have at least five years to pay it off.
Due dates and times will be much clearer. Payments are due at least 21 days after the statement is mailed or delivered. Your due date can't be moved up any sooner without your knowledge. Payment cut-off times before 5 p.m. on the due date will be illegal. Due dates falling on a weekend or holiday will not be subject to a late fee.
If you're paying multiple rates on your card, for example a cash advance or a promotional purchase, your payment will be applied to the highest interest rate first. Currently, issuers are applying payments to the lowest rate, with interest accruing at a higher level on the remaining balance.
Card issuers must disclose the length of time it will take to payoff your account if you make only the minimum payment each month. They'll also have to disclose the payment amount necessary to pay the account off in 36 months, including the amount of interest you'll pay.
Space doesn't allow us to present every provision to the Credit Card Act of 2009. Those interested can find plenty of resources online.
Be assured that credit card providers will still find a way to make a profit. They've all dropped their low fixed rate product and converted most accounts to a variable rate while they were still permitted to do so.
Expect to see the return of annual fees. Cards offering rewards points will be harder to come by.
Do you carry a credit card for emergencies only that you never use? You may consider using it to pay a monthly utility bill. Many banks are charging an inactivity fee to cardholders who haven't used their card in a stated amount of time. Citigroup charges some cardholders a fee up to $90 if they don't charge a certain amount in a stated time period.
That little piece of plastic can be pretty handy when you need it. Be sure to understand the rules and risks before pulling it out of your pocket.
CBS's broadcast of Super Bowl XLIV on Sunday was the most watched program in U.S. television history. According to Nielsen Co., an estimated 106.5 million people tuned in to watch the underdog New Orleans Saints battle the mighty Indianapolis Colts. They also report that 51 percent of viewers tune in to watch the commercials.
So were the ads really worth $2.5 million for each 30 seconds? You be the judge.
Sports and marketing seem to fit well hand-in-hand. Corporate America delights at the sight of their logo emblazoned on the cap of the latest superstar. It brings the type of attention to their brand that transcends traditional advertising campaigns. Michael Jordan hasn't played regularly in the NBA since 1999, but when you think of Nike what's the first image that comes to mind?
Would Tiger Woods marital problems stir such a frenzy if $105 million in annual endorsements weren't at stake?
Emotions run high as viewers gather around the TV sporting their favorite team's colors. There's no better time to appeal to one's senses than when they're emotionally charged.
You can't dispute the sales figures. The Advertising Research Foundation studied how much consumers typically spend on Super Bowl snacks alone. It might help you understand.
Crackers: $185 million
Potato chips: $173.8 million
Tortilla chips: $135.9 million
Nuts: $108.5 million
I won't even hazard a guess on the amount spent on wings, beer or pizza. You already get the idea.
Just over two decades ago, these spots were selling in the neighborhood of $500,000. A pioneer had an idea for a great new product and considered how to promote it. One ad would exhaust his entire advertising budget - a make-it-or-break-it risk. Would it be worth taking? He took that leap of faith. Today, Duraliner truck bed liners are a staple for pickup owners everywhere. Durakon Industries boasts of $300 million annual sales.
The sports marketing relationship extends beyond the gridiron. You'll see it in full glory at Sunday's Daytona 500. Nowhere is it more pivotal than in NASCAR. The racing series would be defunct without corporate sponsorship. In fact, in today's economy, drivers who attract sponsors will get a seat behind the wheel before those with more ability.
Money flowed freely along with the economy. But as it crashed, so did the hopes of many racecar drivers.
Those with the most money had the resources to develop new investors. But even the stronger, well-established teams struggled to find funding. Some chose to start the season without complete sponsorship in hopes someone would step up to fill the gaps as it progressed. Others closed down operation of the un-sponsored car to devote full resources to entries already funded, avoiding the distraction of a mid-season sponsor hunt.
Those without the resources had to be more creative. Perhaps the most unique arrangement was the deal Robby Gordon struck with Monster Energy. The beverage company will sponsor the #7 Toyota for limited events on the NASCAR schedule and extend to sponsorship in other forms of racing. Robby is a legend in off-road racing circles, making him a natural fit for a company that wants to break down barriers.
Robby will build and drive a Monster Energy monster truck to compete against the famous Gravedigger. He'll enter the X Games rally and is seriously considering the Indy 500 backed by Monster Energy.
The move will make Robby-Gordon-the-brand a commodity outside of the traditional racing community. It will make Monster Energy the centerpiece of every racing circuit. This relationship will be the first to unite all forms of racing with one common Monster thread, all stitched around one of the sports finest stars.
With the economy in such a funk, people need an outlet to escape the demands of daily life. Sports provide that outlet. Consumers rationalize their splurge on tickets, snacks and related gear as a much-deserved break from the constant struggle to make ends meet. And advertisers will be there to make sure the product they promote is front and center in your mind when you dole out that cash.
Have you ever had to hunt for a web page you bookmarked when working on another machine? Store them online for retrieval from any PC connected to the Internet. Find out how.
Tip of the Week
Flowers and Valentine's Day go hand-in-hand. Here are a few tricks that will help your blooms last longer. Wash the vase with soap when you change the water. Bacteria clinging to the sides will contaminate your new water. If you don't have preservative, you can add one part 7Up to three parts water. Add two or three drops of bleach. Keep your flowers out of direct sunlight and away from fruit. Fruit emits ethylene gas that will kill your flowers.
Quotable
"The only limit on the speed is how fast the car will go and how fast you’ve got the nerve to drive it." - Fireball Roberts (referring to Daytona International Speedway)
Today in History
1994 - Nelson Mandela becomes the first black president of South Africa.
Flash Fact
Before moving to Bonneville, land speed records were raced on the sand stretching from Ormond Beach to Daytona Beach. The last record set there was Sir Malcolm Campbell’s 276 MPH run in 1935.
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