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Credit cards in our
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Continuing our discussion
of good ideas for the New Year, let's look at credit cards.
If you are among the two-thirds of us who carry an outstanding
balance on your credit cards, now is the time to pay them down. If
you are paying 20%, then paying off your Visa or Master Card is like
earning 20% on your investments. And as good as we are at Hornstein
Financial, I doubt any of us will see 20% returns in the near
future.
The rules and regulations of the credit card issuers make the U.S.
Tax Code look easy. And cheap! According to one website,
www.CardTrak.com, credit card fees and charges have tripled in the
last eight years, with the average penalty for each transgression
running $35.
The interest rates charged also are painful. Mess up on a payment
and your issuer can pump up your annual interest rate to 28% or
more. At that rate, according to Barron's (January 5, 2009), it
would take 4 years of $200 a month payments to close a $5,700
balance. That is a total of $3,900 in interest alone!
For more information take a look at
www.Credit.com,
www.CreditCardClients.com and
www.CreditCards.com.
Ending on a brighter note, mortgage rates are at a record low, in
the neighborhood of 5%. If you are thinking of re-financing and need
some advice, give us a call. We can give you an estimate of what
your new payments might be, and how much that would save you.
If you have any questions or need any help, please contact my
Financial Assistant, Evan Press, at 818.887.9401 or by Email at
evan.press@lpl.com.
In fact, if you have any questions about your financial situation,
need advice before you make an investment or a big purchase, or want
help making sure that you can meet your financial goals, please
contact us. Also, if you know someone who could benefit from our
services, please contact us. We would love an introduction. We are a
full-service financial group, with experts in estate planning, taxes
and investments.
Steve H. Hornstein, CPA, Esq., LL.M., CFP™
Hornstein Financial
20335 Ventura Blvd., Suite 203
Woodland Hills, CA 91364
Office: (818) 887-9401
Fax: (818) 887-7173
Toll-free: (888) 280-8100
www.hornsteinfinancial.com
The opinions voiced in this material are for general information
only and are not intended to provide specific advice or
recommendations for any individual. To determine which investment(s)
may be appropriate for you, consult myself or your financial advisor
prior to investing. All performance referenced is historical and is
no guarantee of future results. All indices are unmanaged and cannot
be invested into directly.
This document is for information purposes only and is not intended
to be an offer or solicitation. The past performance of securities
or other investments does not necessarily indicate or predict future
performance.
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