Credit Crunch

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.
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Payday Loans Online

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.
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Let’s Change Our Money Habits

Manage-the-moneyEveryone 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.
  • Expenditure greater than the income.
  • Late payment of the bills and instead of getting rebates you are paying the penalties for late payment.
  • Impulsive buying.
  • Paying the minimum credit card payment and paying high interest rates.
  • Using your full credit card limit.
  • No emergency fund for unexpected reasons.
  • No clear idea about where to spend or not.
  • Borrowing money from others to do the expenditures at the end of the month.
  • Giving very expensive gifts to the others.
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.
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Adieu, Yahoo...

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.
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Decide Between Renting and Buying a Home

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.
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25 Ways to Save Your Money to Make Your Future Bright - Part 3

money tree
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.
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Good Bye MJ

micheal jackson funeral

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.

micheal jacksonDuring 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!!!
micheal jackson

micheal jackson

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25 Ways to Save Your Money to Make Your Future Bright - Part 2

Saving MoneyThe 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.
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$6 Million Accidental Bank Deposit, Couple Flees with Money

What happened if you find $6 Million deposit at your bank account? This is not a dream but this has happened in New Zealand, suddenly $6 million deposit was made to the account of a couple. The Westpac bank is trying to track the money back but the couple had already taken out some of the money and left the town. According to the Police the couple had left the country and the bank is now contacting the international authorities to recover the money.
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25 Ways to Save Your Money to Make Your Future Bright

save moneyIn this toughest time when global economy is diving on its nose and many big companies are filing for bankruptcy, every one of us should try to save ourselves from this trend by saving money as much as we can. As early we understand this, that’s better. As individual we cannot change the whole economy but at least we can save our family from this downswing trend.

I am here trying to tell you know some steps that you can take in order to save your money for yourself and also for your family. Please check the series of posts to get the complete picture.

1. Try to have check on spending:

(A) Pen down regularly, every money that you are spending everyday on you and on your family. Regularly check the spending and be sure why and how the money was spent.

(B) Sell that are extra. Search around your home and identify those objects that are not more needed, then sell them off.

(C) Refinance your existing mortgage. To decrease the mortgage payment, opt for refinance.

(D) Make entertainment expenses lower. You can cut down your entertainment expenditure by not buying the DVDs and instead rent them or lend from your friend. For music, games and other stuffs you can apply the idea.

(E) Let your children learn value of money. Give your children some lesson on saving money. Tell them the value of every penny. Teach them how to save money for their future.

Sorry to interrupt you in the middle of the article. Please check the next post on this topic to have more ideas on saving money.
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Student Loan Tragedies

Student loan is one of the helpful system that can help us to find our future but very few are clear about its pros and cons. Every one is busy taking the loan and the lenders also try to keep it under cover. Don't take any hasty decision. Know about the loan, what will happen if you not be able to complete the course and leave it in the midway. There are many things that very few of us know like the student cannot file bankruptcy, they don't have the right to refinance the loan etc. So the student and their parents must be well aware of the pros and cons of the loans to avoid any future complications.
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Have you got Free Credit Report?

This video is a part of the campaign conducted by the Annualcreditreport. The report can help you while buying your home or even getting an insurance. So try to get it fast. Why have to wait for so long when its free. I have told you before about credit scores and its implication. Here are some of those posts that you can check.

The Factors That Can Affect Your Credit Score

How to have an Impressive Credit Score
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Student Loan Defaults are Increasing

As per U.S. Department of Education the default rates in federally guaranteed student loans, is going to increase by 6.9% (2007 Fiscal year). 2 years ago it was 4.6% and since 1998 new default rate is the highest.

The private student-loan market is also showing the same trend. Their default rate has almost touched double of the last year. A staff from Boston-based National Consumer Law Center also voiced the same that default rates are increasing.

The lenders are being flooded with the please of help as the students are being under huge debts and increasing unemployment rate is worsening the situation.

There is a temporary relief being provided by the federal government. If the borrowers finding it difficult to repay the loans, they can request the lender to hold on the payment until they are being stabilized. In this way the students can have a temporary relief but their interest will grow with the time. They can also opt for forbearance. But as the default rate is rising, the lenders are also being much stricter before granting the forbearance. According to the market sources normally the lenders allow the forbearance to hide their mistakes of giving loans to the people who can’t afford the loan.

But now many lenders are refusing the borrowers please for forbearance by saying that they have granted much forbearance and are not able to afford more. We can also find some websites with the assistance program to repay the loan. This is the only way left for them. This way they can find some relief.
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Best Debt Consolidation Options

Debt consolidation
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.

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The Basics of Student Loan

Here is a video regarding the student loan and its basics. All the students are eager to have student loans but very few have a clear conception about the student loan and they are always being deceived by the lenders. This video can help you a lot by clearing your doubts on the student loan and also its practices in the United States.

From the video you can also get an outline of the different student loan options available in the market too, which can be helpful for all the students and their parents. Please don't forget to share your views on the video.
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The Student Loan Explained

The student loan helps the students to fulfill their dream. But it is not always true. There are also instance that nipped in the bud for this student loan. Have a look at the options available for you before student loan. You can check the video which states about the student loans in a unique way using play-doh. Hope this can help you to understand the student loan. After having the student loan students also have the option of school loans consolidation to ease off their burden off the debt.
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Health Insurance for the Low Income Family

Health Insurance for Low Income FamilyWhen we feel healthy, we never think what will happen if we fall ill. But it is true that every one can be prey of some disease either today or tomorrow. No one can stay healthy for lifetime. Even anytime we can have to face accidents too. But we seldom think for having health insurance except at the time of emergency. Urgency for health insurance can vary from person to person but it is better to take precautions.

Health insurance not only helps us but also helps our family at the time of emergency. It is always better to cover your whole family with the family health insurance. Today the cost for medication have rose very high and at the time of emergency it is very tough to arrange all the cost all of a sudden. So it is better to be safe.

Today the cost of medical facility is rising vehemently and like wise the cost for health insurance is also rising by leaps and bounds. For the low income families it is really hard to pay the hefty charge to secure their family.

Some state provides help for such families getting their health insurance policies. The low income family must submit a form stating the financial status to the government. Government can offer cheap insurance for them too.

Some websites are also offering cheap health insurance now-a-days. But there are also some companies are there that are giving false promise of coverage. So always choose your health insurance company after studying a lot about the company. Never go by the promises. Always check whether the company is government recognized or not. If the company is truly government recognized then you can be sure that you are in the safe hand. You can also read the reviews on the company and their policies available at different places. This way you can secure a better and tension free life for you and your family.
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More infos on Debit Cards

Protection from identity theft in Debit cardsProtection from identity theft in Debit cards:

Many analysts tell people to choose PIN based debit card as there is a kind protection against the debit card theft. In case of signature based debit card anyone can grab your card and go for shopping but for PIN based debit card its not possible (as long as you can keep your PIN away from the thief).

There is some kind of protection in case the thief grabs your card and goes for huge shopping using your money. But all the protection is available only if you complain about the theft quickly.

Under EFTA or Electronic Fund Transfer Act, if you inform the bank about the theft within 2 business day, then your liability will be restricted to $50. But if you miss the 2 day time limit then your liability can be up to $500. In case of MasterCard and Visa cards, they provide "zero liability" if your card has been stolen. But this assurance is only given for the transactions within the company’s network. If the transactions had been done outside the network, then the liability will be according to the issuing company policy. The policy can be somewhat better or same as Electronic Fund Transfer Act.

Check out for the Hidden Fees:

Check out the hidden fees in the debit cards. Some companies take a monthly fee and some companies charge on debit transactions. Some debit card issuing companies also charge a fee if you use PIN based facility instead of signature based. So always be sure about the fees before using the card.

While buying an item using credit card, you have the option to withhold the payment if you are not happy with the item delivered to you. This right is also safe guarded by Federal Fair Credit Billing Act. But this act can’t be applicable on the purchases using debit card. So it is always advisable to use debit card for smaller purchases and credit card for the bigger purchases. While buying items online, it is always better to use credit cards instead of debit card as the consumer rights are better safe guarded by law for credit cards than the debit cards.
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ABC’s of Debit Card

Debit card usageWhenever 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.
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10 Mistakes to be avoided while Refinancing Your Home - Part 3

Refinance mistakes
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
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10 Mistakes to be Avoided while Refinancing Your Home - Part2

Refinance Home
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

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10 Mistakes to be Avoided while Refinancing Your Home Part 1

refinance mistake
Many are there who are unhappy with their recent loans and like to refinance it to have more suitable loan or low interest rate. But before taking any decision they must be aware of the most common mistakes people while refinancing. A wrong step can lead you to sleepless night for rest of the life. Let’s have a look at the top 10 mistakes that people commit while refinancing.

1. Not checking the market for better option :-

Some people believe it is easy to deal with the current lender at the time of refinance. But the offer of the current lender may not be best in the market, so better to have a look at the options available at the market. Comparing the offers you can get the right choice. Some prefer stick with the present lender as you don’t have to re-qualify for getting the new loan. But it’s a misconception as whenever you apply for a refinance, the present lender will also verify your present financial situation and you have to qualify again. So it is better to shop around in the market.

2. Going with the assessed value of your property :-

Your loan amount doesn’t depend on the value of your property assessed by the tax assessor of your country. The loan amount depends on the appraised value that the real estate agent finds. Generally the appraised value determined through cost approach or the sales comparison approach.

3. Skipping the Break Even Analysis :-

To find the cost effectiveness of your refinance loan, try to check the total money that you are going to spend in getting the loan and how much you can save with lower monthly payment. You can calculate it by dividing the transaction cost by the monthly amount of money going to be saved by the new loan.
Just have an example: If your refinance cost is $1000 and monthly saving is $25. Then your Break Even point will be 1000/25 = 40 months. In this scenario you can opt for refinancing if you want to stay with the refinance loan for at least 40months.

For next part Check out 10 Mistakes to be Avoided...Part2
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Federal Reserve Predicts : In 2009 US Economy will Go Worst

us economy finance updates
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.

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The Factors That Can Affect Your Credit Score

state wise average credit scoreState wise Average Credit Score
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.
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The House has Passed the Stimulus Package of $819 Billion - 3

Debt burden on federalAs 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
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The House has Passed the Stimulus Package of $819 Billion-2

Funny side of stimulus package
$125 billion is also to be spend to reinforce the public education. Normally the education sector is left for the state and regional government but this time federal government is also keen in the sector. $20 billion is going to be spend for the renovation of educational institutions. To avoid the lay offs in education sector $79 billion is to be given to the states. $13 billion has been proposed as extra fund for the high poverty areas. For special education programs $13 billion has been proposed.

To repair and construct the public housing, $5 billion has been proposed to spend. To help the unemployed persons during the financial meltdown $27 billion is to be spend as unemployment benefit. The unemployment benefit is being increased from $300 to $325 per week with the help of extra $9 billion. This plan is going to allow the unemployed to enroll in Medicaid (Health Program serving the poor). For the short time this will allow millions of unemployed workers to get the benefits of Medicaid.

The Democrats from the House and Senate are trying to have major changes in the legislation to help the unemployed due to the foreign competitions. The Trade Adjustment Assistance program that was formed in 1962, will be expanded to cover many more types of workers.
The house bill will give 52.5% of fund through the normal annual Medicaid disbursements and the rest will be given under new bonus program to help the states with high unemployment rates.

Check the next part
First part of the report is available
The House has Passed the Stimulus Package of $819 Billion-1
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The House has Passed the Stimulus Package of $819 Billion-1

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.
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Statewise Distribution of the $819 Billion Stimulus Package

State Aid To States Aid to States Per Capita School & College Modernization Job Training Trans-portation & Infra-structure

Transportation and Infrastructure, Per Capita

Alaska 152158000 221.71 48357000 13715640 338470196 493.19
Alabama 960798000 206.10 355194000 31416013 663713926 142.37
Alaska 152158000 221.71 48357000 13715640 338470196 493.19
Arizona 1301130000 200.17 390459000 48538123 720567695 110.85
Arkansas 585180000 204.94 200625000 27607040 431858848 151.24
California 7854800000 213.70 2430042000 507839639 4457290824 121.26
Colorado 990116000 200.45 226917000 32525697 565549451 114.50
Connecticut 718194000 205.12 175591000 31929081 584010217 166.80
Delaware 176134000 201.74 57200000 7020525 160688252 184.05
District of Columbia 118130000 199.60 70125000 10657624 375741482 634.88
Florida 3546800000 193.51 961078000 149882674 1980019161 108.03
Georgia 1999662000 206.45 614141000 91984831 1313239490 135.58
Hawaii 256130000 198.83 66051000 7625013 218799204 169.85
Idaho 319330000 209.56 75775000 10254185 260652613 171.05
Illinois 2713550000 210.33 859459000 163074364 1808810217 140.20
Indiana 1329238000 208.45 380132000 60372907 968218339 151.83
Iowa 625594000 208.35 151334000 16390905 463130169 154.25
Kansas 591248000 211.00 162211000 19106629 395700268 141.21
Kentucky 861848000 201.87 286591000 48165776 574606979 134.59
Louisiana 944936000 214.23 382951000 43401452 595385420 134.98
Maine 258864000 196.64 75009000 11934126 194557491 147.79
Maryland 1164104000 206.64 293752000 34576551 782049143 138.82
Massachuse-tts 1314888000 202.35 381765000 60581167 1009415292 155.34
Michigan 2130526000 212.98 738044000 200786089 1246726787 124.63
Minnesota 1080796000 207.03 240868000 47418790 684662950 131.15
Mississippi 637062000 216.79 248665000 46179669 425767045 144.89
Missouri 1217038000 205.87 344179000 69653391 935640562 158.27
Montana 196532000 203.15 63268000 9259009 319180239 329.92
Nebraska 377768000 211.82 104496000 10982375 280166561 157.09
Nevada 509760000 196.05 113331000 26232582 291308789 112.03
New Hampshire 267166000 203.04 62448000 8150501 206659874 157.06
New Jersey 1763258000 203.08 419681000 65122101 1498874854 172.63
New Mexico 419284000 211.29 154306000 15888368 333722266 168.18
New York 3991858000 204.81 1632794000 189868406 3390074507 173.94
North Carolina 1838396000 199.34 551152000 81338934 996163687 108.02
North Dakota 138922000 216.56 52829000 8761506 232611864 362.62
Ohio 2385026000 207.65 740000000 155039850 1537795927 133.89
Oklahoma 761740000 209.13 227641000 23305408 544370465 149.46
Oregon 747154000 197.14 209934000 39414636 498364188 131.49
Pennsylvania 2528086000 203.09 821848000 103928168 1863839725 149.73
Rhode Island 220602000 209.94 85286000 15238027 209546357 199.42
South Carolina 905094000 202.04 291414000 65977433 573515829 128.02
South Dakota 167996000 208.90 58139000 8573825 236742407 294.38
Tennessee 1241240000 199.72 347596000 68591645 760887412 122.43
Texas 5139542000 211.27 1724215000 196591556 3052563414 125.48
Utah 617442000 225.64 134333000 15033125 310085588 113.32
Vermont 126390000 203.44 48602000 6978923 162625344 261.76
Virginia 1584522000 203.95 375475000 39295584 997585229 128.40
Washington 1315786000 200.91 316341000 56799208 847078890 129.34
West Virginia 354766000 195.52 141234000 14647874 351210992 193.56
Wisconsin 1162196000 206.50 317239000 42542980 795238394 141.30
Wyoming 108422000 203.55 41766000 7322768 235627410 442.35

Sources: U.S. Census Bureau; Department of Labor estimates via the House Appropriations Committee & Congressional Research Service ; House Committee on Transportation and Infrastructure, Washington Post.
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Some Small Business Tax problems for the Self Employed

business tax
In our country there are millions of people who are self-employed and also dreaming of having a big business. But very few are able to handle the very complicated tax issues at ease. Most of them are confused when its time for their tax return.

All the persons whether they are taking business as a hobby or providing some services to the people, everyone has to file for a tax return. You have to submit business revenue results in your individual tax return reports. Here are some guidelines and tricks you should keep in mind, if you wish to have a business.

Schedule C –Form 1040:-
You always have to report your business loss or profits in Schedule C Form 1040. The income earned from business is taxable. If you don`t withdraw any money from the business, still you have to pay taxes as an individual. If the business has confronted a loss, the loss will be deduced from the total income in case of individual tax return.

Home Based Business :-
If you are conducting home-based business, then you can claim for tax deduction for the payments like telephone charges and other utilities. Most persons miss these opportunities of tax deduction as they are not aware of the rules of deduction.

Self-Employment Taxes :-
Self employment tax is proving a big set back for the self employed. You have to pay a hefty tax for your income from the business. You can opt for partial deduction of your self employment tax, which is not known to many person and pay extra amount tax. You can deduct half of the self-employment tax from the total income.

There are also little known deductions available like no withholding tax, health insurance deduction etc. Later we can talk about these too.
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Wall Street not as Hopeful with Obama

problems of ObamaMany people are optimistic about the prospects of economic growth under President Barack Obama. But in the stock exchange the stocks dived on the Inauguration Day on the fears of having more bank problems in future.

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.
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Obama's Biggest Challenge

Obama at helm of America

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.


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.
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Mortgage rates touch the record low

30 year fixed rate Mortgage interest rates again fall for the 11th week in a row.

On Thursday the home funding company, Freddie Mac said that in US 30 year fixed rate mortgage interest rate mortgage dropped for 11th week at a stretch to touch a lowest record.

According to Freddie Mac the week ending on 15th January, the interest rate of 30 year fixed rate mortgage was averaged 4.96%. In previous week it was 5%.

This lower mortgage rate has resulted in the deluge for home refinancing loans. People are opting for refinancing to have lower monthly payments and have a respite for the panic stricken consumers from the unemployment, inflation and shrinking economy.

But the huge change in the mortgage rates, haven`t been able to affect much on the demand for home loans. The real estate industry is still not able to get out of the worst housing downturn.
After disclosure of the Federal Reserve`s plan to buy upto $500billion of mortgage securities those are being backed by the government sponsored agencies like Freddie Mac, Fannie Mae and Ginnie Mae. There is also the plan to buy upto $100 billion debt that has been issued by Federal Home Loan Banks, Freddie Mac and Fannie Mae.

Frank Nothaft, the vice president and chief economist of Freddie Mac said that the mortgage interest rate for 30 years fixed rate mortgage is going to record low due to the slowing economy and different government actions.

Since 1971 when Freddie Mac began the Primary Mortgage Market Survey, this is the lowest interest rate for 30 year fixed rate mortgage.

15 year fixed-rate mortgage interest rate was found 4.65% from 4.62% and 1 year adjustable rate mortgage or ARMs has been down slightly to 4.89% from the last week average of 4.95%.
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Online Payday Loans: What You Need To Know About It

Payday LoanIn time of urgency, payday loan can come in handy as the rules and regulations of this loan is somewhat lenient that other types of loan. This is the reason why more and more people are applying for this loan to meet sudden need of hard cash. Payday loan is a short term loan by nature and therefore, the borrower has to repay the entire amount along with the interest within the specific time period. Online payday loans is just its online version. It is an effort by lenders to shorten the approval period. Now, a borrower does not have to waste his valuable time. He just has to search in Internet for gathering valuable information about the various aspects of this loan such as interest rate, conditions, repayment period etc.

While applying for a payday loan, one needs to furnish accurate details otherwise, his application might be rejected.
If you have a good credit report, your applications will certainly get quick approval. However, if your credit report is not impressive, you do not have to feel frustrated because your application for online payday loan will not be rejected. Though you may have to bear slightly higher interest rate than the market standard or you might have to bear some extra terms and conditions.
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Avoid Foreclosure while Paying your Mortgage - Part 2

avoid foreclosureContinuation from the post Avoid Foreclosure Tips 1

3. Let the lender know your situation :-

If you sense that you are not being able to pay the next mortgage payment but still current with the mortgage payments, then contact the lender directly without wasting time. If you have already skipped the payments, then don`t shy away and contact the lender straight away otherwise the problem will never end. Always keep it in mind that every lender wants to avoid the foreclosure. If your lender cones to know about you, then there is a chance of getting out of the problem. Always try to be in touch with the lenders. Some people with unpaid mortgage avoid the mails from their financial lenders. The lender can suggest you some way out also in your first notification mail.

4. Check your salable assets :-

Assess your salable assets also, from where you can have some extra money. Every one has some assets that can be sold such as extra car, jewelry etc. While you are in the verge of being foreclosed, shed off the sentimentality and try hard to avoid being foreclosed.

5. Opt for House counseling service :-

In all the states, there are some organizations that are being financed by US Housing and Urban Development which can counsel at no cost. These services are somewhat like credit counseling organizations which offer to solve credit problems. Some companies are also providing same service but beware of them as at the end they can ask a lump sum amount.

Some people offer you to enter into a contract to avoid not only avoiding the foreclosure but also prevent you from all the measures taken by the lender against you. Be careful from them as in that way you can have to loss your home too…
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