Home sales have been increasing, but home values are declining. Image from Wikimedia Commons.

Nationwide home prices are declining, but home sales are beginning to rise. The past year has been volatile for real estate, but more people have been consulting with loan lenders to purchase a home. The low prices are thought to be the reason for the spike in purchases.

Wealthy and investors buying houses again

Figures for nationwide home sales from the National Association of Realtors indicate that an increasing number of people are purchasing homes, according to CNN. Home sales rose 2.7 percent over January 2011, to a seasonally adjusted rate of 5.36 million per year. The increase is also a 5.3 percent improvement over January 2010, marking the first time in seven months that home sales have been higher than figures from a year ago. However, the increase may be bolstered by people who don’t need to go to loan lenders to finance a home purchase. The number of cash purchases was 32 percent of all sales, up from 26 percent in January 2010. Sales to investors made up 23 percent of sales, which accounted for 17 percent of home sales in January 2010.

Foreclosures may have made up difference

The increased number of cash and investor purchases likely is due to deep discounts available on foreclosed properties. Distressed properties, according to Bloomberg, accounted for 37 percent of January 2011 home sales. More homes are available at rock bottom prices, and many a loan company is anxious to get a home off its balance sheet. There aren’t many people who have enough instant cash to pay for a home out of pocket, even one sold at half its value. The median home price has declined 3 percent since January 2010, to $158,800.

Home prices dropping

Many major metropolitan areas are still experiencing declining home values, according to USA Today. The Standard & Poor’s Case Shiller Index recorded drops in all but one of the 20 major cities it tracks. Only Washington D.C. did not see home prices decline. Areas with inflated real estate values such as Arizona, California and Florida have experienced the worst in decline, but southern states like Mississippi and Alabama are also experiencing price declines. The rise in sales may signal reversing demand, and many economists believe 2011 will be a year of dramatic recovery.

Sources

CNN

Bloomberg

USA Today

Experian is adding renters history to its formula for credit scores, which is good news for many people. Image from Wikimedia Commons.

Credit score bureau Experian is now including renter history in its formula for adding up credit scores. Previously, only negative marks on a renter’s history, like evictions from non-payment, were added. Now positive marks will be added.

Pay the rent on time and do some credit repair

Credit bureaus typically do not factor renter’s history when calculating credit scores, except when things go horribly wrong. Paying rent on time doesn’t get noticed by credit agencies even if “the rent is too damn high” as Jimmy McMillan astutely observed. However, eviction for financial reasons is reported. The credit bureau Experian is going to start adding rental activity to its score formula, according to CNN. That will include rent payments, whereas only mortgage payments were previously included in calculating a credit score. Now a person only needs to pay rent on time to do a little credit repair.

Participation unfortunately limited

Rental history being reported to credit bureaus would be fantastic for many people, as it would mean a positive history is established before trying to get a loan for a home or a car. However, participation is going to be limited for some time. Experian’s RentBureau unit is only getting reports from 45 rental property management companies and info on  eight million renters so far. Unfortunately, college students from Arizona to Alabama and beyond might not be improving their scores by being responsible. Those interested to know should contact their landlords to find out if they report to Experian or request a credit report from Experian.

New rules for credit scores

Credit bureaus have new rules to abide by because of the Dodd Frank Act and the Fair Credit Reporting Act, which alter the rules for credit disclosure, according to the Wall Street Journal. A person applying for an installment loan has the right to know what their credit score is. However, the laws don’t mandate that loan lenders disclose which credit bureau’s score was used. However, one free annual credit report from Experian, Equifax and TransUnion can be requested through AnnualCreditReport.com.

Sources

CNN

Wall Street Journal

The adjustable rate mortgage was blamed in part for the recession, but it is starting to make a comeback. Image from Wikimedia Commons.

One of the supposed causes of the real estate collapse and recession of the last few years was something called an adjustable rate mortgage. An adjustable rate mortgage, or ARM, can be misunderstood and, in fact, has a lot of benefits for some buyers. The ARM is starting to make a comeback.

Adjustable Rate Mortgages vilified

During the real estate crash and recession, one of the financial instruments that was blamed was the adjustable rate mortgage. Unscrupulous loan lenders would offer mortgages with a low introductory rate. The interest rate would be drastically raised, pulling the rug from under the homeowner. However, when handled by the right bank and in the right situation, the adjustable rate mortgage, or ARM, is not inherently evil. For some people, it is the perfect loan, according to CNN. That is largely why sales of ARMs have risen to 5 percent of all mortgages in 2010, up from 3 percent in 2009. It is predicted that 10 percent of all mortgages lent during 2011 will be ARM loans.

Perfect for some homeowners

The flagship of all mortgages is the 30-year fixed rate mortgage, in which the rate never changes. An ARM has a lower introductory, averaging currently about 3.5 percent. The increments at which an ARM can be raised are limited by law, and so is the final interest rate. If a person plans to live in the home for five years or fewer, it makes more sense to get an ARM, as payments will be less and payments over the minimum can net greater equity. So if a person is planning to transfer from Jackson, Mississippi, to Birmingham, Alabama only a few years from when they purchase the home, it may be better to go with an ARM.

Flipping houses

The ARM is also great for homeowners attempting to flip homes and sell them for profit. By selecting an ARM, the homeowner has more instant cash that can be put into the remodeling budget. The trade of flipping houses could also make a comeback, according to Reuters, as the Federal Housing Association is extending a program providing government backed mortgage insurance on homes that are resold within 90 days of a previous sale.

Sources

CNN

Reuters

Treasury Secretary Timothy Geithner is due to unveil some proposals concerning Freddie Mac and Fannie Mae soon. Image from Wikimedia Commons.

Mortgage backing companies Freddie Mac and Fannie Mae could become a thing of the past. An upcoming Treasury report will make proposals about what should be done with the two government sponsored enterprises. One proposal is to let them both go under.

Proposed cut of Freddie and Fannie would take years

The Department of the Treasury has several proposals about what to do with government sponsored mortgage insurance companies Fannie Mae and Freddie Mac, according to CNN. The mortgage backing companies were placed in conservatorship when the real estate market crashed. Since then, more than $150 billion in emergency loans was lent to Freddie and Fannie to keep the housing market afloat. The government has been trying to figure out what should be done with Freddie and Fannie. One proposal is to withdraw the government from the mortgage market altogether. However, that would mean that low cost loans for homes would likely become a thing of the past.

Other possibilities

Freddie and Fannie own or insure half of all mortgages in the United States, from Birmingham, Alabama, to Anchorage, Alaska. Phasing the mortgage houses out, according to Bloomberg, or other proposals will take time to implement. It is also rumored that the size of loans that the companies can insure will be reduced. Currently, only loans less than $729,500 can be backed by either company. It is also thought that Freddie and Fannie could be reduced to being mortgage backers of last resort.

Vital role in keeping mortgage costs low

Freddie Mac and Fannie Mae play a role in keeping risks and costs in the mortgage market low. The companies repackage mortgages as securities that are sold to investors and guarantee lenders and investors compensation if borrowers default. The goal is to make sure loan lenders are willing to lend by creating more lending capital and decreasing risks that lenders will lose money if borrowers default. If Freddie and Fannie are axed, the cost of mortgages could increase and make it difficult for anyone other than the wealthy to get a loan for purchasing a home.

Sources

CNN

Bloomberg

Use of credit cards has risen for the past three months, after two consecutive years of decline. Image: MoneyBlogNewz/Flickr.com/CC-BY

The use of credit cards by consumers has started to rise again after a two-year decline. During the recent recession, fewer consumers have been making as many purchases on credit, and more people have been paying off debts. The credit card industry recently began booming again.

Three straight months of increasing use of credit cards

For three consecutive months, there has been a marked increase in the use of credit cards by consumers, according to USA Today. A new report by the Federal Reserve disclosed that consumer use of credit cards had risen by 3 percent in December. The rise in borrowing amounted to $6.1 billion in personal loans from card companies being utilized by consumers over the last month of 2010. The seasonally adjusted rate for credit card borrowing rose to $2.41 trillion in advance cash, which is likely to grow over the year. Consumer borrowing has increased by 3.5 percent after a 27-month period of decline, including use of credit cards and an increase of 2.8 percent for people taking out auto loans. Fewer people were willing to start borrowing money during the recession.

Years of decline despite rising profits

During the past few months, major credit card companies have begun posting major profits. Visa and MasterCard both posted large gains, despite new fee rules imposed by the CARD Act. The CARD Act, or the Credit Card Accountability Responsibility and Disclosure Act, mandated that credit card companies not raise interest rates on cardholders without notifying them in advance. This has led to the base interest rates of credit cards being raised so the rates higher when people sign up. Buying an Alabama Crimson Tide jersey online could get that much more expensive.

Merchant fees also contribute

Credit card companies are also enjoying the benefits of merchant fees, according to the Washington Post. Some credit card companies have raised fees charged to merchants for swiping the card, which could lead to prices being raised in stores to counter the fees. Customers who made purchases with credit cards rather than with cash also have to pay more in interest thanks to higher prices.

Sources

USA Today

Washington Post

Retail stores are branching out into financial services such as check cashing to appeal to the growing number of consumers wary of banks. Image from Wikimedia Commons.

Giant retail store chains have begun branching out into the world of alternative financial services. Store chains such as Walmart, Kmart and Best Buy have started offering financial services to unbanked customers — those without bank accounts. Almost 20 percent of Americans do not have a bank account.

Alternative financial services at retail stores

Large retail chains are beginning to offer alternative financial services to customers who don’t have bank accounts, according to the Washington Post. Services such as money orders and check cashing have been available in retail stores for years, though some retailers are expanding their offerings. Walmart offers check cashing and sells prepaid debit cards in stores and is expanding by putting a financial services section called Walmart Money Center in stores. The Money Centers, which are currently in more than 1,100 stores nationwide, offer check cashing, money orders and prepaid card services in a bank or credit union-like format. The company is planning to expand the number of Walmart Money Center locations from Alabama to Arizona to Alaska, but Walmart does not appear to be planning on offering cash advances yet.

Kmart and Best Buy expand financial services

Retail chains Kmart and Best Buy are also expanding into offering financial services to customers. Kmart is offering pilot programs of check cashing, money orders and prepaid debit card services in some stores. The layaway program that Kmart re-launched at the height of the recession has also been very popular, as fewer people want to use installment loans or credit cards to make purchases anymore. Best Buy has launched a series of kiosks run by Tio Networks that customers can use as an electronic bill paying system. Instant cash is fed into the machine, which uses an electronic payment network.

The unbanked

The unbanked are people who do not have a bank account of any sort and use alternative financial service providers such as check cashing services to handle transactions. About 70 percent of the unbanked earn $30,000 per year or less and many choose not to patronize banks because of bank fees or mistrust of banks. Surveys done by Walmart indicate that one in five customers do not have a bank account.

Source

The Washington Post

New estimates for Social Security indicate the program will run deficits until 2037, when the trust fund will run as dry as the Bonneville Salt Flats. Image from Wikimedia Commons.

New estimates project that Social Security will run out of cash by 2037. The estimates, from the Congressional Budget Office purport that Social Security will run a deficit until 2037, when the trust fund will be completely depleted. Recent tax cuts already have given advance cash out of Social Security revenue.

Constant deficits projected for Social Security

A new series of projections for the Social Security program by the Congressional Budget Office estimates that Social Security will run a deficit from now until 2037, according to MSNBC. The new projections are a reversal from last year, when the CBO had a far rosier estimation of the health of the Social Security Administration. In 2010, the SSA ran a deficit for the first time since the Reagan administration, but the CBO estimated Social Security would recover from any shortfalls by 2012. Previous estimates had projected a $45 billion shortfall for 2011, but it is now estimated that the shortfall will increase to $130 billion. The CBO also contends that Social Security will continue to post deficits until 2037, when the Social Security Trust Fund is expected to run out, leaving retirees from Alabama to Arizona high and dry.

Rare losses

The Social Security Administration had not run at a loss since the 1980s, though it is the single largest expenditure in the national budget. Budget surpluses of Social Security, which have been constant until recently, were put into the Social Security Trust Fund but have been a frequent source of emergency loans for the U.S. government. This year, the government is expected to run a $1.5 trillion deficit, which is more than a government can take out some personal loans to cover.

Tax cuts a partial culprit

Part of the problem, if the CBO’s estimates prove correct, is that the Bush era tax cuts that were re-extended included a reduction of Social Security payroll taxes. The loss of revenue will only exacerbate the loss, though Congress has pledged to put up the necessary funding to cover the loss.

Source

MSNBC

Congressional leaders such as Eric Cantor have insisted on debt settlement options before state bankruptcies can even be contemplated. Image from Wikimedia Commons.

There has been speculation that some U.S. states will declare bankruptcy due to budget issues, but debt settlement plans are more likely. Senior members of Congress have discussed it, but key Republicans have dismissed the idea. However, further loans from the government are not likely either.

State bankruptcy less likely than debt settlement measures

Most U.S. states, if not all, have encountered some sort of budget shortfall since the recession began in 2008. Fewer people employed — and therefore purchasing goods and services — combined with a sluggish housing market has exacerbated state budgetary woes. The idea of state bankruptcy has been discussed, but top Republican lawmakers are not entirely receptive to the idea, according to Reuters. House Majority Leader Eric Cantor expressed that debt settlement options exist outside of passing legislation to allow states to declare bankruptcy, including drastic spending cuts. The possible outcomes from allowing state bankruptcies could include the growing municipal bond market collapsing. However, it has also been made clear that emergency loans, like those included in the bailout packages, were not likely to be lent.

States insist bankruptcy not on agenda

Some state governors of states with budget woes have insisted that their respective states would not consider bankruptcy. Governors Christine Gregoire (Wash.) and Dave Heineman (Neb.) issued a joint statement to the effect that neither state would file for bankruptcy even if it were made an option legally. There are 44 states looking at a budget shortfall in the next year, according to the Center on Budget and Policy Priorities. Only six states — Alabama, Arkansas, Alaska, Delaware, North Dakota and Wyoming — are not expecting to be short instant cash at some point.

Toughest years possibly behind

Most economic forecasts have been for a slow but steady growth out of recession conditions. The possible ramifications for a state government to declare bankruptcy could be catastrophic, and thus the idea is too dangerous for lawmakers to contemplate. Federal bankruptcy courts would be tied up for years were that to happen.

Sources

Reuters

CBPP

A person could buy real estate for dirt cheap through GovSales. Image from Wikimedia Commons.

Buying a home is a huge decision, but that doesn’t mean that one must always pay what agents would like them to. There’s a way to buy real estate ridiculously cheap, no matter where you live. Try looking at real estate being offered by the United States Government.

Uncle Sam will be agent and loan lender in one

The government of the United States is indeed one of the largest, if not the largest, real estate agent in the nation. It is also one of the biggest loan lenders, too. Federal Housing Administration, Veterans Administration and other installment loans for purchasing homes or other property are lent all the time by the government. For the past few years, Uncle Sam started selling houses, too. During the administration of President George W. Bush, the Office of Management and Budget asked all federal agencies to catalog all assets like property, equipment and so forth that they held, according to CNN. Holdings of equipment or property that weren’t being used or wouldn’t be used are now sold through the General Services Administration.

GovSales offers homes to lighthouses

The General Services Administration, or GSA, maintains an auction site at Govsales.gov – and there are some seriously cheap prices on real estate. Former industrial properties and government buildings from office space to lighthouses are available to the highest bidder. There are also some incredibly low-priced residential listings as well, especially former Housing and Urban Development properties. For example, one listing is for an HUD property in Birmingham, Alabama, where a 4 bedroom, 2 bathroom home is listed for sale at a mere $35,000. Granted, some repairs may need to be done, but a buyer could get a loan through the FHA.

Plenty of other stuff, too

GovSales also has cars, trucks, computer equipment, boats and just about everything else the government has in surplus. It is an auction site, so interested buyers will need the cash on hand to make the purchase. That said, a person can save some serious green by buying from Uncle Sam.

Sources

CNN

GovSales

By self-filing, a person can save time and cash by not giving a preparation service a pay day. Image from Wikimedia Commons.

A lot of people might be better off self-filing their taxes instead of giving a preparation service a pay day. It is not difficult, and most people can file electronically for free through numerous avenues. It is a good way to gain self sufficiency and save some money during tax season.

Cut the middleman and save money by self filing

Soon enough, the tax filing deadline of April 18 will be here. A lot of people take their tax returns to a tax preparation service, such as H&R Block, and a preparer fills out and submits an income tax return for them. The majority of Americans, from Alabama to Alaska, use a professional preparer, as about 60 percent of all returns are done by a preparation service annually, according to USA Today. Unless a person has a laundry list of itemized deductions to make, a lot of Americans really don’t have to give preparers a pay day and could be saving instant cash by self preparing. That said, people with complex returns should have their returns prepared by a professional. However, someone with only a 1040 EZ or 1040A likely doesn’t need to worry.

E-file for free

The Internal Revenue Service has an entire page dedicated to E-file services, many of which are available completely free of charge for people with an Adjusted Gross Income less than $58,000. There are numerous tax software companies, including TaxSlayer and TurboTax, that allow a person to file a free federal return, and free software for preparing a return through numerous other companies. TaxAct and H&R Block both offer free home editions of their tax return software, though that means people won’t be able to get short term loans against their returns if they need them.

Direct deposit means faster dispersal

People who elect to receive their income tax return through direct deposit can expect to get it sooner than a person who chooses a paper check. That way, instead of having to check out Wheresmyreturn.com, taxpayers need only to check their account balances.

Sources

USA Today

There are ways to save serious instant cash on leisure activities, like checking out books from a library instead of buying them at a bookstore. Image from Wikimedia Commons.

There are a lot of ways to save instant cash by cutting corners on leisure activities. Believe it or not, there are ways to still have fun and not have to sacrifice much at all. One just has to be creative and know a little.

Ways to cut leisure expenses and save some serious cash

Leisure activities are a necessary expense in order for people to stay mentally healthy. For instance, a lot of people love movies. It’s a time honored tradition, and a lot of instant cash gets spent at theaters every year. However, that doesn’t mean paying full price. For instance:

• Matinees at theaters are usually 25 percent cheaper or more
• Most cities have discount theaters that show films that have been out for awhile at half the cost or less
• Only go to the theaters if it counts – limit your trips to just a few special films and wait for the rest to come out on DVD
• Check out free streaming movies Netflix and other services

Get a library card

Libraries are increasingly neglected resources. Most are funded publicly, and a library card is worth it. Late fees won’t make a person run for a loan until payday. Checking out a book from the library means not having to pay Barnes and Noble a lot of money, and because most public libraries have DVD selections, you may even be able to avoid paying for rental. There are public libraries in nearly every town in America from Alabama to Alaska.

Learn to cut corners

There is no reason to pay full price for anything there is an alternative to if quality is not compromised. Just because a movie or book is a little older doesn’t mean it is no good. Cutting corners when it comes to leisure activities without sacrificing is entirely possible and can mean some serious spare change in the pocket.

Blizzard conditions are hitting the Southern U.S., and states without cold weather infrastructures may need emergency loans before long. Image from Wikimedia Commons.

The American Southwest has been paralyzed by freezing cold, and emergency loans may be needed before long. Several major southern cities have been brought almost to a halt by snow and ice in one of the worst winters on record. Some states have declared states of emergency.

Southern states may need emergency loans before long

The winter storms that have been wracking the east coast with record snow and ice are wreaking havoc in the South, and emergency loans may be needed for relief efforts before long. Up to a foot of snow has fallen from Louisiana through Alabama and all the way up to the Carolinas, according to MSNBC. The amount of precipitation has varied, but Tennessee received 13 inches of snow. Freezing rain across the Gulf Coast has not helped matters; it has turned roads into skating rinks and bridges into dangerous crossings. The states of Alabama, Georgia, Louisiana, North Carolina, South Carolina and Tennessee have all declared states of emergency, including school and university closures.

Alabama terrified of missing game

Alabama is said to be the most obsessed states in the union regarding college football, and the Auburn Tigers are playing  the  Oregon Ducks in the BCS Championship today. However, icy roads and snowy conditions may prevent people from being able to attend. The city of Birmingham has been hard hit by the weather, and flights are being canceled. Governor Bob Riley had to opt out of a trip to Arizona for the game because of the rotten weather. More snow is due in the region, and the conditions are expected to stay rotten for days.

Silver lining for some

Some have found a way to make a little extra cash during the snowstorm in a region known for humidity, heat and more humidity. Enterprising individuals and contractors with the equipment are able to plow snow covered roads and lay down de-icer and sand in cities lacking the equipment.

Sources

MSNBC

For those who can qualify at their local bank or real estate office, current mortgage rates mean low interest loans. Image from Wikimedia Commons.

People looking to purchase a home can get some low interest loans if they act soon. Current rates on mortgages are beginning to rebound from record lows, so there’s no time like the present. The only snag might be qualifying for financing.

Low interest rate mortgage loans available

Banks want to get anyone they can get to buy a home, or at least anyone who can qualify for the financing. Higher credit scores are usually required these days, though that isn’t always the case. People looking to get low interest loans for purchasing a home are better off acting sooner rather than later. Current rates on bank loans for homes are at all time lows for fixed rate mortgages, according to USA Today. The market rate for the 30-year fixed mortgage is currently at 4.77 percent, down from 4.86 percent from a few weeks ago. The market rate for a 15-year fixed mortgage is 4.13 percent. The 15 year fixed mortgage rate is down from 4.20 percent a few weeks ago.

Rebound from record lows

If there is a time to get a loan for a home, it’s now. Mortgage rates are rebounding after epic lows, as the housing industry took a downward turn over the course of 2010. Fewer people were buying homes after tax credit expired, and fewer people felt confident enough to buy, despite values being slightly down from Arizona to Alabama and all points in between. The market rate for 30-year fixed hit 4.17 percent in November of 2010, the lowest interest rate in 40 years. The rate for 15-year fixed home finance loans hit 3.57 percent in November, the lowest since 1991. Those who can come up with the instant cash for a down payment should do so soon.

Rates will rise eventually

The adage “What goes up, must come down” and vice-versa applies to a lot of things. Buying low and selling high is what many homeowners aim to do, and with mortgage rates so recently having been at record lows, there’s no time like the present.

Sources

USA Today

A minimum wage in seven states gets low income workers a little more pay day cash, but it's only pennies more an hour. Image: MoneyBlogNews/Flickr.com/CC-BY

A small hike in the minimum wage in several states is going to provide some workers with a little extra pay day cash. Minimum wage differs between states, as some peg the minimum wage to inflation. There are seven states raising the minimum wage.

Minimum wage going up in seven states

Seven states are raising the minimum wage by varying amounts, which means a little more pay day cash will be going to workers in those income brackets, according to USA Today. An estimated 650,000 people will get a raise of anywhere from 9 to 12 cents per hour, depending on which state they live in. Colorado, for instance, is getting an 11 cents an hour raise to $7.36 an hour. Washington state is raising the minimum wage by 17 cents, allowing the Evergreen state to maintain the highest minimum wage in the nation at $8.67 per hour, but that hardly keeps anyone from needing a loan until payday, as the raises are all due to higher prices of consumer goods.

Minimum wages vary

All states vary in how the minimum wage is set, though most use the federal minimum wage. Some states, such as Alabama or Mississippi, have no minimum wage laws. Ten states peg the minimum wage to cost of living, and seven states have seen a sufficient rise in consumer price indexes to raise it. Colorado, Arizona, Washington, Montana, Ohio, Oregon and Vermont have all legislated a little more quick cash for the lowest paid workers, though the raises are not by very much. The raises won’t mean that workers will suddenly never need installment loans ever again, but they will get a little more help.

Every little bit helps

Those who have to make a living on minimum wage do not have an easy time of things, and even a tiny increase can be a benefit. Minimum wages have been controversial for some time, and many have argued for either a radical increase or getting rid of it altogether.

Sources

USA Today

Minimum Wage in the U.S.

The largest national loan lenders might settle quickly in the investigation of "robo signing." Image from Wikimedia Commons.

The largest loan lenders may be the first to settle with various state attorneys general. All 50 states are investigating foreclosure practices and procedures of various banks and loan companies. The findings indicate not everyone has played by the rules.

Quick settlement may be forthcoming from large loan lenders

As every state attorney general is looking into foreclosure practices, especially the “robo-signing” controversy, the nation’s largest loan lenders for mortgages are lining up to reach a settlement as quickly as possible, according to Reuters. A widespread probe into mortgage foreclosures began several months ago, conducted by attorneys general from all 50 states, so foreclosures from Scottsdale, Arizona, to Birmingham, Alabama, will be scrutinized. It appears that the nation’s largest loan lenders are ready to settle, including Bank of America, Wells Fargo, Ally Financial, JP Morgan Chase and Citigroup, according to a recent statement from Iowa Attorney General Tom Miller. No concrete settlement has been reached, and no instant cash handed over for fines yet, but that could be the case fairly soon.

States shun bad practices

The finance industry has been under heavier scrutiny over the past few years, and the revelation that banks may have mechanically produced foreclosure documents without merit, which is called “robo-signing,” certainly does not paint the largest loan companies in the nation in a good light. People may have been issued foreclosure notices even though they were up to date on the installment loans they borrowed for their homes; this explains why all 50 state attorneys general are looking into the matter.

Housing market still down

The housing market is still on a shaky foundation. Homes have been losing value, and fewer people are confident about buying. If consumers become less confident that the institution that their mortgage was obtained through is honest or trustworthy, it could be a recipe for disaster.

Sources

Reuters

Shoppers may have to part with less pay day cash to stock up under the tree this year. Image from Wikimedia Commons.

Shoppers may end up having to part with less pay day cash during holiday shopping this year. Consumer items that are common gifts are priced drastically lower than they have been in decades. The news may not be fantastic for retailers if sales are sluggish, though.

Gift items going for least amount of pay day cash in decades

Shoppers may have to part with less pay day cash to stuff stockings this year. The average prices on consumer goods that typically fly off shelves during the holiday shopping season are at the lowest levels in decades, according to CNN. The price of small appliances, like toasters and coffee makers has dropped 30 percent since 1998. Television sets have dropped more than 90 percent since 1980, and stereo equipment has dropped 50 percent in price since that time. The benefit for consumers that they “get to buy more crap,” as John Norris, a wealth management director in Birmingham, Alabama, puts it. Typically, a good shopping spree results in a lot of people needing installment loans to cover the tab, but that may not be the case this year.

Discounts at register pick up the pace

Retailers are offering more discounts than ever, despite the fact that shoppers were buying more this year, according to USA Today. The gains in holiday sales, especially around Black Friday, have been slight, but gains were realized nevertheless. Consumers have been shopping more, but not using credit cards to excess and running for a loan until payday in January. Retailers are willing to keep offering sales and discounts to get people into the stores to spend some instant cash.

Every little bit helps

Though economic conditions are such that people are not spending wildly like in past years, they are willing to spend a bit on gifts for the holidays. Whether it is a little something for themselves, or a loved one, the confidence among the public to shop again is an encouraging sign.

Sources

CNN

USA Today

Alabama bad credit loans

There are many Alabama citizens in need of bad credit loans. Most people with bad credit have a very difficult time getting the help they need when they need it the most. Because of bad credit, they are automatically determined to be high risk borrowers. So, from a new car loan to the latest technology on the market, getting help with bad credit is nearly an impossible deed to accomplish.

Sites like Personal Money Market, however, understand that credit problems can happen to anyone without notice. We have combined a wide network of online lenders who are focused on one thing and one thing only: fund your need, no matter how good or bad your credit history may be.

Financial options for people with bad credit

Making ends meet can seem very difficult at times, especially when unexpected financial emergencies suddenly arise. If you do not have money saved for these types of immediate circumstances, you’re going to need some help. Regardless of how big or small that problem may be, it’s absolutely crucial it is taken care of as quickly as possible. Getting a loan from a bank is most likely not an option, as most banks would not even consider individuals with less-than-decent credit scores. Thankfully, there are bad credit loans available online for people seeking temporary assistance and struggling with credit problems.

Getting bad credit loans online is easy

You don’t have to drive to a specific location in Alabama to find these loans. If you have access to the Internet, you can apply right from the comfort and security of your home. Upon approval, funds are deposited straight to your bank account, saving valuable time and money on your end. Pay off unexpected bills and avoid late fees and other penalty charges.

Apply for Alabama bad credit loans online | Start HERE!