Financial Updates

Credit crunch is a situation when the availability of credit becomes very limited and the interest rate is also become high. Experts say that careless and irrational behavior of the lenders leads to the loss for the lenders and when the loss touches zenith then they try to restrict the credit and the market falls into the credit crunch. At the time of credit crunch lenders try to give loan only to the secured borrowers. Recession is sometime conceived same to credit crunch. But both are characteristically different, although recession always comes with credit crunch.

Here is a funny song that you can enjoy if you need to refresh yourself from this credit crunch.

Do you think you know all about payday loans? When was the last time you checked out the online cash advance? If you haven't seen what's new lately, then you're in for a pleasant surprise. These days, the no fax payday loan or online cash advance is a much better, safer and more secure loan that you can obtain.

 

As for instance, just check out the terms of a recent no fax payday loan. You'll notice that not only it is easy to understand the payday loan terms that you're signing up but, you're also less likely to incur avoidable fees. This is because the industry is moving away from its early stages of a fledgling system that offered few protections for the borrower. It is becoming a regulated financial management tool in the current times.

Financial planners are now recommending the online cash advance, which is also known as the no fax payday loan. If you compare it with late payment penalties on any credit card, then you’ll find that you can save money if you go for cash advance online. It's quite hard to believe that the same product put people into the debt trap a few years back. According to industry professionals, it is not only one of the safest and secured products in the present times, but it is also a tool that can help people save money and get their budgets under control.

Go see for yourself and find out about the new cash advance online. You'll like what you see. If you have questions, then you can call the toll free number to get more information from the customer service staff.

Everyone likes to have more money but when you are living on a fixed income then to make huge money is very tough. But if you try to follow some rules then you can save some money for your future which can help you to create heap of money in future. You don’t have to cut all the expenses off and make the life a dull, but if you use the money wisely then you can enjoy the life more. If you can change the habits then you can keep tab on the wastage of money and also use the money for more important usage. If you change the money habit, then you have to worry less before spending the money as you have enough money to enjoy the life in its full. I am trying to point out some of the bad money habits that is harming us like an swine flu epidemic.

These habits are really tough to change but to stop these are the need of the hour. Otherwise it can be really late to recover. At first identify all the bad money habits.

Today’s tips is now over, I have to leave now and we will discuss in the next post, till then goodbye.

Yahoo and Microsoft announced that they have signed a 10 year agreement for search and advertising issues. In a simpler version its that Microsoft will provide the Yahoo search results and Yahoo will work on the worldwide premium search related advertisements.

The Yahoo fans will now miss the yahoo search results and get the Bing search results on their screen as answer of their query. This will give the searcher less option to search in the net.

Google is dominating the worldwide search market with 65% market share. To stop its domination the Yahoo- Microsoft is joining hands and their combined search share is now 28%. Although the share is almost 50% of the Google share, still this deal will give the advertisers new space to showcase their product in a much bigger Bing platform.

If the deal gets the approval of the regulatory body of USA then the Bing can pose a challenge to the Googledom. This approval will not be effective until they get the final approval from the regulatory body which can take at least 2 years.

This deal will leave yahoo basically a marketing and sales and media company and Microsoft will focus on the search technology and the infrastructure. This can also make scope of more improvement for both the companies as they can concentrate with a single sector to compete Google. Although the Wall Street is not at all happy with the deal and yahoo shares dropped by 12%. Google also had to shed 0.8% share price as its impact. Only Microsoft has shown a sunny face with the 1.4% advancement. They are not happy with Yahoo’s surrender to Microsoft in such a manner and there is a fear that Yahoo now can die very soon.

There is a preconceived notion that buying a home will always save your money than renting a home. But is that true in real life? With a simple equation and example the analyzer tried to prove that it is better if we go for renting a home. It is ok to see it. But have you thought that after every year the real estate price go higher but the rent go higher.

We already have got to know some ways to save out money like To have check on spending and Bank Deposits

3. Look for discounts

(A) Try to find better discounts while purchasing the needs. If you find a good discount then you can be sure that you are not over-paying for your purchase and can save a lot of money at the end.

(B) Try to find freebies and renting the stuffs like movies, DVDs etc. instead of buying. Buy in bulk so that you can get more discounts. Always use recycled papers and search for used items in the internet.

(C) Coupons can save lot of money at the time of shopping. You can find lot of coupons in the local newspaper and the mail. You can collect them a lot very quickly and can save money very easily.

(D) Always make use of the package deals offered by the internet, cable, phone companies and get huge discount at your daily usage. You can also get some gifts and free usage too.



(E) During the shopping try to find different offers from the retails shops like buy 2 get one free. While buying the groceries, always buy from large wholesale shops instead of the retails shops. Shopping from retails shops always cost more than the big wholesale stores. You can also get some more offers from the wholesale shops also.

In the next post I am going to give you some more ideas on saving the money for your future.

The Staples Center memorial of LOS ANGELES, California experiences the last show of the Pop King Michael Jackson. His funeral was the biggest attraction of the day. Every channel was covering it live for their viewers.

During the one and half hour show the web traffic also rose by 31% above the average.
During the whole show MJ was lay silently at the foot of the stage in a bronze casket. It was covered with red roses. Every one was there to be part of the last show except MJ. Many Hollywood celebrities took part in the show to deliver their regard to the best entertainer of the world. MJ died on 25th June due to the cardiac arrest, but the exact cause of his is still mysterious like his private life.

The cost for providing the security for this occasion was estimated between $2 and 4 million. The city is already under the debt of $530 million and asks the MJ fans to donate some money to help the city to bear its expenses through a webpage.

The program was full of the emotional remembrance of the Jackson family and friends. The audience and the viewers, fans were also paying tribute to their silent star. Jackson's three children were also part of the show and they sang for their father too.

MJ in his career tried to be pan-racial through his music and appeal. "It don't matter if you're black or white" – was the lead line that made him African American icon for decades and he will remain that for years.

We will never forget you, MJ!!!

The first part of this series you can find in the post 25 Ways to Save Your Money to Make Your Future Bright part 1
There we have already discussed how we can save money through keeping tab on our spending. Hope after reading that you have used some of them and got some results too.

2. Bank Deposits:

(A) Go and open savings account at a bank nearby. Try to save some dollar everyday and deposit them in the account every week or month. At the end of the year you can discover a lump sum amount in your savings account which can be helpful during medical or financial emergency.

(B) You can also suggest your employer to deposit 10 or 15% of your salary to one bank that pays greater interest rate, this way you can save some money for sure.

(C) If your spouse is a one who can save money then make an account in his/her name without your access and save some money there.

(D) You can opt for a term deposit too. You can save the money there for many days by not withdrawing the money.

(E) You can use some interest paying current account too. There you can get the advantage of having ATM and checque facility. In that you have to leave a certain balance on daily basis and on which you can get some interest too.

In the next post I am going to discuss some more ideas on saving your money to have a brighter future.

Today every Americans are under the huge burden of debts. Everyone is under the burden of unbearable burden of debt, irrespective of huge businessman or a common man. Everyone likes to come out of this debt and take a breath of debt free life.

You can find many options available in the market that tells you to help you to be debt free. But everyone is confused which can be helpful for them. Here I am trying to focus on some best option to get out of all your mountain of debts.

1. Bankruptcy :

The most popular option to alleviate debt completely is to take the help of bankruptcy laws. But this option does’t work always. In some cases like child support, student loan or debt to government, bankruptcy will not help. It can help you in case of credit card debt, car debt, loan or mortgage. You can book an attorney and file your bankruptcy to get the relief from debt. This option has some worst sides too.

2. Home Refinancing :

The persons who has house with some equity, can opt for the best debt consolidation option to get out of the debt which is Home Refinancing. They can refinance the mortgage and can use the equity to pay off the pending debts. You can use this method to pay off your all types of debts but before taking decision everyone should check its all pros and cons.

3. Debt Consolidation Services:

Debt consolidation service is also one of the best options you can try. Some provide it for free. You can get rid of most of the debts by settling the debts. If you have huge amount of debt then you can have to shell out lot money for this service.

Whenever you go to open a bank account, you can find the bank is providing a card called Debit card, some call it check card. The debit card can provide you more flexibility while you are in a shopping mood.

Normally ATM (automated teller machine) cards are used to take out money or other transactions at an ATM. But in case of Debit card you can use it at the stores too to buy items. At the time of purchase, the money deducted directly from the bank account. There is no such provision like "pay later" that is available with credit card.

PIN based and Signature based Debit Card:

There are two different types of debit cards can be found in market,
1. PIN Based 2. Signature based.

1. PIN based Debit card :

Some debit cards require PIN or personal identification number to complete the transaction. The direct or PIN based debit card deducts the purchased amount instantly from the bank account. Normally these cards are accepted in the gas station, supermarket, superstores (e.g.-Wal-Mart) and at medical shops.

2. Signature based Debit card :

Signature based debit cards also known as deferred debit card. These cards typically have a Visa or MasterCard logo and can be used at any shops or stores where these cards are accepted. After the transaction the card holder has to sign in the bill copy and the purchase amount will be deducted within 2 or 3 days.

Some banks provide both types of facility in a single debit card. While swiping the card ,the card holder gets the option to choose either PIN based or Signature based.

7. Drawing money from Home Equity Lines of Credit (HELOC):

There must be minimum cash out waiting time before you take the cash out of your HELOC. Normally the lenders prefer it to be at least 6 months. A cash-out just before your refinancing can be a sign of your irresponsible credit usage. The lender can reject your loan application too.

8. Signing the refinance loan documents without proper checking:

Before signing in the loan documents, go through the terms & conditions in details. Request the lender to provide the papers in advance so that you can review it properly. At the time of closing it is not possible to check the minute details of the documents as everyone is in hurry.

9. Delays in providing essential document:

If you like you can avoid the unnecessary delay in time of closing. Provide necessary documents to your lender when it’s asked. Otherwise, your closing can be delayed and you can have to face higher mortgage rate and can results in drain of your hard earned money.

10. Giving money on Mortgage Insurance:

PMI or private mortgage insurance is to be paid when you found default on your mortgage. Sometime your mortgage payment increased due to PMI. When you have 80% equity stake in your house, then PMI cannot be demanded. If the refinance is less, then only you can have to pay hefty on private mortgage insurance.

Avoid these mistakes at the time of refinancing otherwise you can have to waste a huge amount of money just for your ignorance.

You can check the previous posts of this post - Part 1 & Part 2

Continuation from the previous post 10 Mistakes to be Avoided...Part 1

4. Having a verbal (not in written form) Rate Lock :-

Don’t go by the words. Have a written document about interest rate, closing cost, APR and all the fees related to the refinance. The loan officer can offer you a lower rate but this can change anytime, so better to have a written statement about the related costs for you home refinance. This is easily available as Rate Lock Commitment. Always ask for your copy and keep it as record.

5. Not having a Good Faith Estimate (GFE)

Within 3 business days of receiving your loan application, your lender must provide a GFE or Good Faith Estimate about the closing cost. This can trace you whether any hidden cost is being levied from you or not. This can save your lots of money and also keep you away from the problems. If you haven’t received the GFE, then rush to the lender to get it.

6. Paying for an appraisal despite the lower home value:

If you know that your appraised home value is low, then don’t agree to pay for appraisal. If you like you can request for a home valuation using the automated valuation model (AVM). In this model the lender and realtor carries a market analysis based on the price of the other houses in your locality. These comparisons can help to save a lot of your money when the realty prices are going down day by day.

Checkout for the rest 4 mistakes in the next post - 10 Mistakes...- Part 3

Last week the Fed warned that the dull American economy will get even worse than the economists predicted. Fed expressed concern as there is no sign of improvement of housing market and its stabilization and predicted that it can even deteriorate in future.

According to The Federal Reserve estimate, in 2009 the unemployment rate could touch 8.8%. The Central Bank report also indicates the new home building and future project applications have touched record low in January. Some economists still hopeful for a better future.

The Federal Reserve forecasts that in 2009 the economy will shrink between 0.5 and 1.3%. Some days ago it predicted the contraction of 0.2% or expansion by 1.1%. In 1991 the US economy had been shrinked by 0.2% and remained for a year. According to FED premonition the economy is going to be on its weakest position since 1982 (1.9% contractions).

The dark forecast is showing the deep toll of the toughest financial crises. The country is facing the economic crisis for the consecutive year. The production of factories and mines has dipped 1.8% on January. The economists were expecting a fall in production but this has crossed their expectations too. The auto plants production have been down by 23% for the consecutive 3rd month. The construction sector has also been dropped by 16.8% from December 2008.

According to some economists the construction market is worst since 1930 and the situation is going to worsen day by day. Last week another boost came from Obama of $75 billion (to save 9 million citizens from loosing their home), this can also work for the housing sector.

Credit score is the numerical expression that helps us to determine any person’s creditworthiness. It can be increased or decreased according to your deed. Credit scores can vary from 300 to 900. The greater the score the better will be your advantage.

Your every credit related behavior can have a role in determining your credit score either positively or negatively.

Some behavior that affect the score positively:

• Lets have a look at some behavior to better your score.
• Always pay the bills before the due date, don’t skip any bill payment.
• Only use the 25% or less credit of the credit limit. If someone’s credit limit is $100,000 he should not cross balance of $25,000.
• One must try to have a steady employment history to have a better credit score as the people with steady income seen as better payer of the bills.

Some credit behavior that can decrease your credit score:

• The person who have skipped or paid late of their bill.
• Some one who has used more than 80% of the available credit.
• If anyone becomes bankrupt or who have to face the foreclosure, the score is bound to down miserably.
• If anyone has to be unemployed for sometime, it must have a bad effect on his credit score.
• Many requests to have new lines of credit can also hamper the credit score.

The Prime Factors Influencing Credit Score:

The Payment History, the outstanding debt, the length of credit history, number of credit inquiries for the credit are the prime factors that can define your credit score.

In my next post I will try to focus on these influential factors and the calculation too to have a more clear idea about the credit score.

Here is a chart, you can have a look to have a clear idea about the average credit score that are present in different states.

As a result of this package already record breaking cash deficit will reach 10-12 % of GDP in the year 2009-10. Due to the gigantic volume of the package and some long lasting programs, the cash deficit can be double of the previous peace time record.

The Federal debt can touch 100% of the gross domestic product. Since the World War II this is unprecedented and now US is in the same league of Italy (debt touches 104% of the gross domestic product).

The Democrats are trying to gather public support before the next week Senate vote. Barack Obama also expressed that its not good to do nothing in the time of economic turmoil. Now every one is eager to find out whether the burden of the stimulus package make the US into a debt burden country or be able to get out of the economical downturn?

For the complete story check the previous posts Part 1 and Part 2

Have a look at the stimulus package chart to know more about the statewise distribution of the Stimulus Package

On 28th January the House has passed the tax and spending bill of $819 Billion to fight with the recession. This will broaden the federal government’s reach in the American economy by reforming the strategies on Health, Energy, Education, Social programs etc. This bill is almost equal to complete yearly expenditure of federal, under Congress’s approval. Senate is also preparing to pass a similar package which is also of almost $900 billion.

These will result in federal government’s debt in its peak since the World War II. The House bill represents Barack Obama’s view that America is in crisis and has to work beyond "stale political arguments".

The money will be spend on some projects like- clean water projects, student loan program and housing related assistance etc. The bill will help the unemployed to get medical benefits and can expand the use of renewable energy. $335 million will be spent on STDs (sexually transmitted diseases). $50 million will be given for the Arts. National Oceanic and Atmospheric Administration will get $70 million from The Senate bill to buy a supercomputer. $75 million will be spent for smoking awareness programs.

This approach to boost economy is contradictory to the Bush Administration’s approach. The Bush Administration tried to save the economy by putting more money in the middle and upper class people’s pocket through tax cuts. Obama is spending $275 billion giving tax relief to the families belonging to the lower income group. To encourage the job creation, business incentive has also been planned. The bill has expands the coverage of the unemployment insurance for the part-time workers.

Check the next part of the article here

To see the complete details on statewise distribution of the Stimulus Package check this.

Most people are placing their hope on Obama for The Economic stability. But Wall Street is not so optimistic about that as they are frightened of future bank problems.

Everyone round the world was happy and excited at the time of inauguration as 44th President of USA. But the Wall Street was not so excited.

The average Americans were happy and eager for the change but the investors were not as confident as usual. Almost every stock went downwards on January 20.

STT has already reached its half value after the premonition of 2009 as the tougher year. Some banks like Bank of America and Citigroup have touched its lowest value.

The only question which rises in mind is that what President Barack Hussein Obama can do to take the Economy back on its track.

In his Inaugural Address Obama expressed that the economy has been under bad stress and is now weak. He said that there is a fear among Americans that America's decline is unavoidable, so the next generation has to lower its vision. Obama also asked for more "bold and swift" action to restore the wrecked economy.

But the experts are not happy only with the call for action, they are looking for drastic steps like a plan to help to restore the America`s ailing banks.

Obama has said that economic crisis cannot be solved in a quick, it will need sometime. But some market strategist predicted that the new Government’s initiative will show some results for solving its credit crisis and the $800 billion package will stimulate some blood to the dying economy. The market analysts imagining Obama as a positive catalyst who can show us better economy later in the summer. The package cannot beat all the problems but it can heal some of its wounds and can give the market a hope for new life.

In his first 100 days as president, Barack Obama has to face many challenges. The recession wrecked, hammered and bruised from the 8 years of Bushism, America has placed great burden of hope on his shoulder.

With 73% favorite rating (most in recent days), Barack Hussain Obama has to do something for everyone. The scale and magnitude of his problems that he is going to inherit can only be matched with the irony “stratospheric expectations”. Among these pressures he is going to face the real situation at White House.

In his first 100 days, to satisfy all who are dreaming him as a ray of hope, will be the biggest challenge for him. The major fronts he is going to face are like economy, foreign policy for Middle East, Iran, Pakistan and Afganistan etc. Lets have a look at his challenges in the financial front.

ECONOMY:

TARP (Troubled Asset Relief Programme) and ARRP (American Recovery and Reinvestment Plan) will guzzle $1.5 trillion. The experts are also not confident about its outcome, whether it will restore the confidence in the financial system or not. Officially the US Economy has been in recession since the starting of the 2008. Since then 2.6 million people has lost their jobs and the optimists too hope that this situation will also last at least one or two year.

The decreasing housing market and record foreclosures can increase the tension of the Democratic President. Will he be going to spend big to be the instant hit or he choose the middle way? Like- he is going to spend $800 billion to provide infrastructure jobs. Will it be better if he choose to have tax cuts? Will it be better to take long gestation projects like bridges, roads or to take other short-term remedies? He also has to tackle the budget deficit of $1 trillion-plus.