Archive for July, 2009

PREPARING YOURSELF FOR A REBOUNDING ECONOMY

Tuesday, July 14th, 2009

PREPARING YOURSELF FOR A REBOUNDING ECONOMY

Well we certainly have had enough bad economic news and predictions to last most of us a lifetime, so we thought we should begin to prepare you and your finances for the pending upswing in the economy, a welcome topic for all of us. While it is too early to say the recession is definitely over, the consistent figures and indicators coming out of Washington these days, they are although seemingly cautious, beginning to look and sound optimistic.

As this recession caught most of America unprepared for such a deep and lengthy recession, we would instead like to give you a jump start on the return of prosperity and how you can maintain it with some tried and now proven lessons we learned from the downturn. A debt consolidation loan is looking like a real possibility not only for major corporations but individuals as well.What we have seen in this recession has been a great awakening for people’s personal financial responsibility, and sometimes lack of it, where debt management is concerned. We as a country have learned that we cannot continue to spend $1.15 for every $1.00 we earn, as over 67% of America had been doing prior to this recession.

Just as the banks and auto manufacturers had to go through the process of restructuring, another phrase simply meaning debt management through the means of an outside source of debt and credit counseling i.e. the Federal Government, we as people had to learn the same lesson by seeking help with our own debt management through credit counseling. People in record numbers caught unaware for the recession that hit us so hard quickly realized they needed help in managing their credit card debt and budget planning. Unfortunately for some the realization came too late, or not at all, which is why we have had record numbers of bankruptcy and foreclosure filings. But many more were saved from the ugly process through reputable nonprofit credit counseling or debt consolidation programs, allowing them to stay in their homes and put their financial futures back on the right track. The lessons from this recession have been hard fought and learned, not soon to be forgotten. But businesses, having learned their lesson, are preparing like never before for an economic rebound and we as individuals should be doing the same.

Businesses are marketing and restructuring their business models yet again in anticipation of economic recovery, realizing that the business model they incorporated during the recession will need to be altered for the recovery in order to position themselves to succeed even greater than the competition. While businesses do their restructuring a little differently than we would our personal finances the principal is the same, we must constantly analyze our debt management in order to optimize the money we make and how, when and where we spend it.

If you managed to make it through the recession without the benefit of credit counseling it’s certainly not too late. However if you are among the many who have sought and utilized the benefits of credit counseling don’t think that you’re on autopilot now. Just as businesses need to constantly change their debt management practices to accommodate the current markets, personal finances operate in much the same way.

We need to readjust our budgets to the changes of our personal income and financial needs periodically in order to make the most out of our debt management plans and be better prepared for any financial turmoil that arises in the economy. With continuing debt management and planning we can live in a more relaxed state of mind, knowing that no matter of future recessions to come, and they will come, we can be poised not only not to suffer through them, but also be able to take advantage of some of the inevitable pluses that arise during economic hard times such as being able to buy large ticket items that are often reduced greatly in price during a recession. Avoid making simple tax mistakes and you’ll avoid needing to be calling tax attorneys left and right.  So be wise and continue your debt management education even though you may be over the proverbial hump now or soon will be, and allow yourself the benefits of lessons learned to carry throughout your lifetime.

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BE PROACTIVE WHEN IT COMES TO YOUR FINANCES

Tuesday, July 14th, 2009

BE PROACTIVE WHEN IT COMES TO YOUR FINANCES

Americans all across the country who have been struggling through one of the deepest and longest lasting recessions have had to make great changes to survive. For some the changes ended up to be of a positive nature in the long run. While some have simply had to cut back on their spending a bit the majority of Americans have had to make substantial changes in their lives and for the unfortunate in some cases it has been life changing to an extreme degree. The record number of foreclosures and bankruptcy filings are proof of that fact as well as the high unemployment figures still being recorded. There’s a record number of Americans who are turning to tax relief firms to help them fight off IRS audits and tax seizures. It may seem that things are snowballing, but America we’re going to pull through this.

As we have struggled to find solutions to our debt management problems many of us could find no solution on our own and opted instead to seek the help of credit counselors to aid us. Through the help of a reputable credit counseling agency we have been able to stay in our homes and once again manage our debt.

Free Debt Consolidation counselors can assist clients through a variety of debt situations, from those who are just having difficulties making ends meet and need assistance with budget and debt management, to those who are in serious debt and have fallen behind. Through the skilled expertise of a credit counselor you can retain their services for not only creating a workable budget you can actually live with, but also take advantage of a debt consolidation or debt settlement plan to eliminate your debt through a structured debt management plan devised specifically for you.

In times such as we are still facing we must be proactive in our approach to our finances and continue with our debt management plans for the secure future we all want to have. As the economic climate changes whether for the better or the worse it is imperative to periodically change our debt management plans with the changes in our lives in order to maintain that stable economic outlook, irrespective of the economy. It is always a good idea to seek professional help in dealing with such an important issue as our personal wealth, so if you have a good credit counseling agency stick with them through the years and your changes. If you don’t have a good credit counselor it’s never too late to get the help you need or to find a credit counselor to assist you with maintaining your good financial health and planning for your future. A good source of tax information is IRS.GOV

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OBAMA PROPOSES FINANCIAL WATCHDOG AGENCY

Tuesday, July 14th, 2009

OBAMA PROPOSES FINANCIAL WATCHDOG AGENCY

The Obama administration is responding to the American public’s outcry for help against credit card and associated businesses unfair trade practices and is posed to do something about it. The president asked Congress on Tuesday June 30 to create a new agency to regulate and even to police if necessary the fine print on credit card bills and mortgage documents. Under the agencies purview would be the determination of what will be a fair cap on the fees, penalties and interest rates allowed.

Under the Consumer Financial Protection Agency the watchdog would be responsible for regulating credit cards, mortgages and savings accounts and determining the rates and methods they operate under. In a prepared statement the president said, “Those ridiculous contracts with pages of fine print that no one can figure out, those things will be a thing of the past.” New regulations which were passed in Congress this spring will be part of the agency’s job to implement Obama said. A new addition to come under the agency’s domain that the president has on his list will be the high interest rate pay-day loan arena, as well as the terms on savings, checking, and debit card accounts, which was not included in the bill passed by Congress.

Included in the president’s plan lenders would be required to apply warning labels to risky products such as the balloon type mortgages that he sees as having caused so many Americans to fall into foreclosure, as well as the other non traditional types of lending such as “payday loans” and other credit products.

While the president has been very vocal on how he sees the need for increased governmental responsibility and oversight in the financial markets many opponents are equally vocal that the increase of regulations may be the cause of increased costs as a whole in the banking industry to the customers and limit the type and amount of financing the public will have available to them.

However it is widely thought the president will not be swayed on the issue, just as he sees credit counseling a requirement for any person seeking to file for bankruptcy, in that he believes that many people can avoid foreclosure with the help of a reputable credit counseling agency that will assist them with debt management, budget planning, debt consolidation or debt settlement if necessary and avoid bankruptcy altogether. The idea being that informed and educated consumers given the right information and instruction will then be able to manage their debt and lead their lives in a productive and fruitful manner.

This also ties in directly with recent administration tax relief proposals. IT would in essence provide tax debt relief for Americans who have been put into a financial hardship due to a foreclosure or unforeseen financial hardship. The last thing anyone needs is a wage garnishment or tax seizure and quite frankly it only slows down the process of helping our country turn around this economic depression. Tax debt is a shocking reality for many Americans, not just the politicians from both sides of the isle of late. It’s no surprise that millions of Americans are looking to tax debt professionals to help them avoid a nasty IRS audit or tax lien.

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HOW SAFE IS YOUR CREDIT CARD INFO WITH THE BANK

Tuesday, July 14th, 2009

HOW SAFE IS YOUR CREDIT CARD INFO WITH THE BANK

In today’s world of cyber crime and identity theft most of us have taken steps to protect our sensitive information that identity thieves are seeking, and while we may be taking prudent steps to secure ourselves from identity theft it seems the banks and companies processing our credit card charge authorization and payments aren’t nearly so careful. An investigation by the Associated Press found that there is significant reason for us to be concerned about the methods used by banks and the other companies handling our information. The government has left the design and supervision of precautionary measures up to the credit card banks and their associated companies to self regulate what, if any measures are taken to protect consumers from identity theft, which would explain why there are so many breaches reported every year. Many Americans find themselves in a huge amount of tax debt due to the fact that their banking information or social security information may have been compromised and it is now floating all over the internet. The last thing anyone needs is to have to hire a tax attorney to represent them because a number of individuals has been using their social security number to earn a living and then not pay the income taxes on those earnings.

According to the Privacy Rights Clearinghouse there have been more than 70 retailers and payment processing companies that have disclosed breaches since 2006, exposing tens of millions of customer’s credit and debit card numbers. Additionally, it was found that many more breaches had occurred, but had gone undetected.

It was no surprise to find that even the companies with the “industries” top rating for computer security known as PCI compliance have been hacked, resulting in major heists of sensitive data. One in 10 of the mid to large size retailers in the United States have faced fines for their lax security measures, but are still free to continue to process credit and debit card payments without impediment. In fact most retailers do not even have to endure security audits; they are left to police themselves so to speak, although they don’t seem to have any incentive to do so. They see the problem of identity theft as the price of doing business and that stricter rules or regulation would amount to less speed, convenience, and an increase in credit costs.

Although customers can not be held liable for fraudulent charges, we still lose, because merchants will readily admit they pass on to consumers the costs they incur from credit card fraud, and for those unfortunate ones that are actual victims the time and effort involved in trying to repair your ruined credit can be overwhelming for some. So what can we as consumers do? Consumer advocates and money management experts agree it is necessary to have open lines of credit established and maintained for the purposes of creating and managing a good credit score for the event of buying a home, car, or other large dollar purchases.

However, they are also recommending that people once again return to paying for purchases by check or cash whenever possible in order to lessen their odds of identity theft. To many people the idea of paying off their credit card debt seems an impossible task. When that is the case the experts suggest seeking the help of a reputable and qualified non profit free debt consolidation agency to assist you with a viable plan of action.

Credit counselors can assist you in the various areas of services they offer consumers in handling their credit card debt and debt management, whether it be through simple budget and debt management or as detailed and comprehensive as debt settlement or debt consolidation, a reliable credit counseling agency can get you on your way to debt freedom. Short of that there is just one more thing to do, and that is to write, phone, fax or email President Obama and your other representatives asking for rules and regulations governing security measures for credit and debit card processors and their associated affiliates. It’s better to avoid these pitfalls now then end up owing (mistakenly or not) thousands to a bank or credit card company and then having to have a debt consolidation firm (or non-profit consumer advocate) have to help you clean up the mess later.

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