September 29, 2008 by Justin McHenry

When JP Morgan Chase bought the assets of the failed bank Washington Mutual for $1.9 billion last week, it became the second biggest bank in the country behind Bank of America. It also became the largest credit card issuer in the United States, at least in terms of outstanding loan balances.

Washington Mutual purchased the credit card company Providian in 2005, and began marketing cards under the WaMu brand as well as being the issuer for credit card partners such as retailers, associations, sports teams, and more. With the WaMu acquisition, Chase not only increases its customer base, but it buys these contractual relationships with outside partners, a valuable asset in the competitive credit card market.

While the credit card market remains competitive, Chase’s acquisition of WaMu — coupled with today’s news that Citi will buy Wachovia — means the market has consolidated further, with even fewer players dominating the lion’s share of the market. This is probably not currently a concern to regulators who are preoccupied with stabilizing financial markets, but over time it could mean less choice for consumers as it becomes more difficult to gain credit and also avoid the higher interest and fees that most of the major issuers offer.

It always is… we have the children’s theater festival in October each year…and Ale and I like to go to as many plays as we can (usually, 2 per weekend), so that increases our fun spending…it’s not that bad, $3/person this year…still, it’s about $24…good thing they don’t…

Niece sent me a text message yesterday:br /
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Auntie, would you consider giving me a 2nd chace with letting me use the boom boom? I realize now what an important tool it is. I promise I will not fail you again.br /
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So, starting tomorrow, she’ll be picking up Ale at school…we’ll see how…

A Think Glink reader asks about her friend who’s in a second marriage but does not have her name on the deed of the house she shares with her husband. Ilyce points out that the friend would not be protected if her husband dies, especially if she’s not been included in estate planning. Ilyce suggests using a quit claim deed to change the home ownership to joint tenancy with rights of survivorship or tenants by the entirety.  

A Think Glink reader asks about property estate planning. The reader’s husband’s mother wants to leave her property to her three sons. The reader wants to know whether using a quit claim deed or an irrevocable trust is the better option. Ilyce discusses some estate planning issues and advises that inheriting property saves more on taxes than signing a quit claim deed. Learn why here.  

Americans spend more than they used to on mortgage and rent payments. The percentage of the family budget used for housing costs has become unmanageable for some families. How can families cut or increase their household budget to pay their rent or mortgage? Ilyce offers some tips for the family budget. 

A Think Glink reader asks which economic indicators he should monitor as a gauge for when to refinance his mortgage or home equity line of credit (HELOC). Ilyce advises monitoring mortgage interest rates as opposed to all the economic indicators that affect them because of recent events in the housing and financial markets. Learn how to watch mortgage interest rates.  

An older Think Glink reader asks about combining an adjustable rate mortgage (ARM) and a home equity line of credit (HELOC) into a 30 year fixed rate mortgage. She’s also considering waiting until mortgage interest rates stabilize. Should she refinance the ARM and HELOC into a fixed rate mortgage loan? Ilyce says she should look at the terms of her loan and compare that with market conditions such as the value of her home.  

A home owner writes that she’s unsure of her home’s value and that she and her husband have taken out several mortgage loans. Because some of the loans will soon adjust she’s not sure they can keep making the payments. She worries about refinancing or selling the home and not getting enough to pay off the mortgage loans. How can she determine an accurate home value? 

no particular reason….today, for example, I don’t feel I’ve accomplished anything (although I’ve done a lot of things, but they just seem so irrelevant…)br /
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((sigh))