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Q. I just received my new credit card statement. The interest rate is now 32 percent! I am thinking of just telling them to shove it. Interest rates like this are clearly going to force many people into bad credit ratings, bankruptcy, or foreclosure. With the economy looking so weak, surely it would be better to not pay this account.
Like many Americans, I can't save. Without caps on interest rates, I may never be able to save. This is loan-sharking. I read a lot of excuses, but I see no action to really help people. What should I do? What should others in my situation do? ---W.P., by email
A. That’s a very high interest rate. While I have no love for the credit card companies, the real test here is how you respond. There are many credit card offers out there.
Q: I notice that you seem to tout mutual funds regularly. But I have never seen you mention private ownership of individual stocks. I wonder if there is a reason. Our retirement is extremely comfortable because my father built a retirement fund -- a small fortune -- by buying individual stocks. They not only supported him and my mother, now they also support my husband and me (in addition to Social Security and my teacher retirement).
My folks lost their house in the Depression, and my dad decided that would never happen to them again. He began studying the stock market and, when he was able, he bought individual stocks for long-term investment. He said he only bought aces, straights and flushes.
