As we previously stated, our love for other personal finance blogs on the net is almost second to non. Below are some highlights from posts we found interesting recently:
In an interesting personal finance-esque article posted on a non personal finance site, ESPN explores the details surrounding the debts of New York Kick’s Eddy Curry. We still can’t believe the amount of money this man was/is bringing in and the type of loans he was “forced” to take out:
New York Knicks center Eddy Curry defaulted on a $570,000 personal loan while keeping up a lifestyle that included a $17,000-a-month suburban New York home, a $6,000-a-month personal chef and a dozen cars he’d bought for himself and relatives, a judge said.
On Friday, a Manhattan court ordered Curry to pay $75,000 a month to lender Allstar Capital Inc. to resolve a debt that swelled to$1.2 million with interest. The court also has issued an order letting Las Vegas-based Allstar seize three of the cars: a Rolls Royce Phantom convertible and two Land Rover SUVs, all 2009 models.
Lawyers for both Curry and Allstar said Monday they were headed toward a settlement that would make the order moot. They wouldn’t disclose terms. Curry’s lawyer, Mercedes Colvin, would say only that she believed the two sides had reached “a mutually satisfactory resolution of the matter.”
Curry earned $10.5 million this season and is scheduled to make $11.3 million next season in the final year of his contract. But the former No. 4 pick in the NBA draft has been dogged by financial and legal problems in recent years.
He took out the $570,000 personal loan in February 2008, promising to pay it back in five months at a nearly 85 percent annual interest rate — legal in Nevada, according to Allstar lawyer Donald N. David. (<<–M#%&$ PLEASE)
Curry argued he couldn’t pay off the debt at $75,000 a month because of his existing bills, which include $30,000 a month in household expenses at his family’s White Plains, N.Y., home, nearly $17,000 a month in payments to various other relatives and more than $1,000 a month in cable and satellite TV service, according to the court order. It said his wages already are garnished for more than $207,000; the order didn’t explain why, and lawyers wouldn’t elaborate.
Read the full story here: http://sports.espn.go.com/new-york/nba/news/story?id=5216481
Walletpop.com has been running a special series of articles called “Tuition Ignition” which breaks down the dynamics of rising tuition costs and its effects. The article previewed below is one about a specific student who recently graduated from Loyola University and is called “Burried in Student Loan Debt: One Post Grad’s Story.” This story hooked us from the begining. Check it out:
Linda calls me up first thing in the morning just about every single day. She rings with such regularity, in fact, that I hardly need to set an alarm clock anymore. I’m usually too groggy to answer, but when I check my voicemail, I can picture the dimple-bursting smile on her face as she chirps away about all the wonderful opportunities I have today.
Bruce, he usually checks in just before noon to tell me about all the great new options that have recently become available to me — another injection of optimism to brighten my day after lunch. And Robert, he’s the most recent addition to the group. He’s my mid-afternoon man, and although he’s a bit more brusque and business-like than the others, I’m growing to count on him just the same.
These aren’t my friends, relatives or acquaintances: They’re student loan representatives and debt collection agents, and, like so many graduates before me, they’ve become a regular fixture in my post-college life. Every single day, I receive calls from people whose job it is to ask me why I can’t pay my bills, although I’ve come to understand that they don’t have any real interest in the answers.
How did I get here, you ask? I came to this point the same way most debt-addled souls in their mid-20s do: I went to college at a private university, and I picked up a couple of credit cards along the way.
When I graduated from Loyola University Chicago last May with a bachelor’s degree in journalism, I walked out the doors with a monkey on my back. I owe slightly more than $39,000 in federal student loans, both subsidized and un-subsidized. Although the amount raised four eyebrows from my parents, I can’t say I felt blindsided. After all, a four-year degree from Loyola costs more than $125,000, and that’s only the tuition. Factor in room and board (although I lived off-campus during my stay, rent still adds in just the same), books and fees … given the astronomical cost of my education, I almost felt lucky to get away with under $40K.
I was able to borrow so much without resorting to private loans, by the way, because I took a couple of years off during the course of my undergraduate education after initially attending Michigan State University out of high school. As a result, I was old enough during my last two years in college to file for student loans without claiming my parents’ income. This turned out to be both a blessing, because I avoided the hassles and pitfalls of dealing with private student lenders, and perhaps a bit of a curse, because I felt free to borrow the maximum each year. After all, when the federal government offers you extra money for expenses and living costs, all you have to do to get it in hand, really, is not turn it down. At times, I felt like a kid in a candy store … or a poor student in a money store, at least. Free school books, you say? I’ll surely pay you next fall for a photography manual today.
So anyway, my monkey is a rather massive monkey — more like a silverback gorilla, I suppose. Except for my loans come from four different lenders, some of whom don’t offer loan consolidation, so that’s four monthly payments to manage — and, like many other fiscally immature students, I maxed out a couple of credit cards by the time I was 20-years-old and made meaningless minimum payments for the next five years. Six monkeys, then. And this story soon takes a detour into Oz, because, as it turns out, those monkeys have wings to take flight.
MSN.com recently provided a list of 5billionaires who live the way we’ve been trying to explain to you here on ThisIsWhyUBroke.com:
5 Billionaires Living Below Their Means
Each of these men is worth a fortune, though you might not know it to look at them. Frugal, no-frills approaches have paid off in their businesses and their lives.
At least once in your life — maybe even once a week or once a day, for that matter — you have fantasized about coming into a lot of money. What would you do if you were worth millions or even billions?
Some of you may do nothing at all. Believe it or not, there are millionaires and billionaires among us who masquerade as relatively normal, money-conscious people. Take a peek at some of the most frugal wealthy people in the world.
Millions of people read Warren Buffett’s books and follow every move of his company, Berkshire Hathaway. But the real secret toBuffett’s personal fortune may be his penchant for frugality. Buffett, who is worth an estimated $47 billion, eschews opulent homes and luxury items. He still lives in a modest home in Omaha, Neb., that he purchased for $31,500 more than 50 years ago. Although Buffett has dined in the best restaurants around the globe, given the choice, he would opt for a good burger and fries accompanied by a cold cherry Coke.When asked why he doesn’t own a yacht, he responded, “Most toys are just a pain in the neck.”
Carlos Slim Helú
While most of the world is very familiar with Bill Gates, the name Carlos Slim Helú rarely rings a bell. But it’s a name worth knowing.
Slim, a native of Mexico, was recently named the world’s richest person — that’s right, richer than the Microsoft co-founder. Slim is worth more than $53 billion, and, while he could afford the world’s most extravagant luxuries, he rarely indulges. He, like Buffett, doesn’t own a yacht or plane, and he has lived in the same home for more than 40 years.
The founder of Swedish furniture phenomenon Ikea struck success with affordable, assemble-it-yourself furniture. For Ingvar Kamprad, figuring out how to save money isn’t just for his customers, it’s a high personal value. He’s been quoted as saying, “Ikea people do not drive flashy cars or stay at luxury hotels.”