Economic downturn changes Americans' attitude toward debt

After years of amassing higher levels of unsecured debt, many Americans have decided it’s time to stop paying high interest rates and get their financial houses in order. One option recommended frequently in the financial press is to divert some or all of the dollars previously earmarked for saving and investing to now pay down debt. For these “experts,” paying off debt is equivalent to earning the interest rate charged. “When you pay off a credit card that charges 16 percent interest, it’s like earning 16 percent guaranteed.” Is this true?

Mathematically, an accelerated paydown – assuming you have the resources to implement it – seems like... click here to read more

Employers increasingly being sued over inflexible leave policies

A number of cases are being brought across the country challenging employers’ inflexible leave policies, sometimes known as administrative separation policies, when an employee is terminated for failure to return to work following a maximum period allowed for a leave of absence. Many, if not most, employers have policies that if an employee is absent for leave for more than a set period of time, e.g., three months, six months, 12 months, or 24 months, they are administratively terminated from employment. Such policies have traditionally been seen as desirable, inasmuch as otherwise an employee can stay on the employment rolls forever, and the objective nature of the policy is often con... click here to read more