There are hopes to establish the following Rules of the Road:

• Ban abusive “student loan” servicing practices that take unreasonable advantage of borrowers’ confusion over loan repayment options.
• Create minimum student loan servicing standards.
• Establish a Student Loan Advocate to review borrower complaints, gather data, and issue reports.
• Grant the Department of Business Oversight to collect better data about the student loan industry.

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Future student loan borrowers in California may be getting their own bill of rights. These rules would protect those holding student loans in the U.S. California has an ongoing commitment to protecting student loan borrowers. Student loan borrowers are defaulting every 28 seconds. The student Bill of Rights would establish the rules of the road. Student loan borrowers currently have few protections when interacting with loan servicers. Legislators hope to pass this bill by the end of the year.

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Rent to own stores can charge up to an APR of 200% or more in finances charges. In New Jersey the cap is 30% APR. The Federal Trade Commission warns consumers about entering into rent-to-own transactions, as laws regulating them vary from state to state. Many rent-to-own companies also may charge delivery or processing fees on top of state and local sales tax. Many low income consumers believe it meets their needs and they pay a high cost for doing it. Two-thirds of rent-to-own consumers have incomes below $36,000.

If an appliance breaks the rent-to own companies will repair it at no cost, or give the consumer a loaner while the item is being repaired. The bottom line is that is an expensive but valuable service. Those who exercise the early return option pay far less than those who pay until the term of the contract is complete.

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Rent-to-own sound too good to be true. For a small recurring fee, you could take an item home with the intent to pay it off later. With a rent-to-own arrangement, consumers get immediate access to new or used merchandise – such as furniture or household appliances – and in return pay a weekly, semi-monthly, or monthly rental payment. Most rent-to-own don’t require a credit check or down payment and the rental has a pre-determined period, usually between 12 and 24 months. Best of all, customers can cancel at anytime and the item can be returned. It’s a $8.5 billion dollar industry, with about 9,200 stores in the USA and Canada, and Mexico serving 4.8 million customers annually.

But is it worth it?

The rent-to-own industry is notorious for costing customers double or triple what they would pay  for an item by purchasing it outright upfront.

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When credit card debt rises, consumers have less money to spend at local restaurants and shops. When someone defaults on a car loan, it affects a small business because that employee can’t get to and from work. When a recent graduate has a massive student loan to pay, they have a harder time putting a down payment on their first home. In fact, home ownership rates for millennials are lower than previous generations, because of rising student loan debt.

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Set aside some time to tally your monthly expenses and income. Examine your debt and see if there’s a way to start paying down the high-interest variety – namely credit card debt.

Reach out to your bank or another reputable financial institution to talk about long-term planning. These financial companies shouldn’t just be holding your money or cashing your checks. They should be true partners helping you and your families set and reach financial goals.

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While experts debate what’s ahead for the U.S. economy, a major issue that’s often overlooked continues to pose a threat – personal financial health. It’s critical for all Americans to be equipped with the knowledge to make sound financial decisions. Here are some alarming stats:

• Some 40 million Americans – or 16% of adults – say they will miss at least one credit card due date in 2019.
• Student loan debt has grown to $1.46 trillion, up nearly $80 billion in the past year.
• Two-thirds of millennials have saved nothing for retirement, and only slightly more than a third are participating in employer-sponsored retirement plans.
• Less than half of Americans can pass a test on basic financial issues, and Americans on average are estimated to have lost over $1,200 last year because of their lack of financial knowledge

If more people take the time to become financially savvy, not only will each individual benefit, but the local communities  and broader U.S. economy will become stronger as well.

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Have you or anyone you know had a recent addition to their family? With all the excitement of a new baby, it’s easy for the parents to overlook some key steps to take.  Here are some tips you might want to share with them or consider for yourself:

1. Add you child to your health insurance policy
2. Update your will, trust, and beneficiary designations
3. Ensure you have adequate life insurance
4. Plan for childcare expenses
5. Make adjustments to your budget
6. Consider saving for education expenses
7. Start teaching good financial habits

Sounds like a lot? Of course, this is just a tiny piece of what parents do for their children.

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Most universities don’t provide financial literacy education, college graduates are left with little to no knowledge when it comes to managing money. But conquering your financial life is as important as landing your first job. Here are 5 mistakes to avoid:

Mistake#1: Spending too much money on housing

Mistake#2: Not working student loan payments into your budget

Mistake#3: Not saving for retirement right away

Mistake #4: Not saving money from the start

Mistake#5: Not tracking your money moves

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At least 43 million Americans have overdo medical bills on their credit reports, according to a 2014 report on medical debt by the Consumer Financial Protection Bureau – CFPB. And 59% of people contacted by a debt collector say the exchange was over medical bills. This month, the CFPB proposed a rule to frame what debt collectors are allowed to do when pursuing many types of overdo bills, including medical debt. But the law passed in 1977, did not anticipate email and text messages. The CFPB’s proposal clarifies how debt collectors can use these communication tools. It would allow consumers to opt out of being contacted though emails and text messages. The rule specifies that debt collectors can make no more than seven telephone calls weekly over a specific debt. Consumers should ask for details in writing and if necessary dispute the debt. If the judge agrees, after seven years, the debt can be dismissed.

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