Americans relying on unemployment

Millions of Americans are seeking jobs while relying on unemployment checks to sustain themselves and their households in the meantime. In the past, unemployment pay was set to last for six months, the official insurance limit on the program. However, difficulties and a down economy have forced the federal government to extend payments to as long as 99 weeks in some states. That’s the longest period unemployment has ever been extended since its inception.

The critics weigh in

Unemployment benefits are not being extended without criticism. There is now a political debate over the extensions. The cost of unemployment is $10 billion a month for the government and many legislators are questioning the move. Senator Jim Bunning recently made moves to extend benefits, but was attacked by Congress members who believe the cost is too high for the nation. For example, Senator Jon Kyl believes that extending benefits does little to encourage people to find work. They may become lax in finding jobs and seeking to change their financial positions.

The numbers speak for themselves

Despite Kyl’s position, the numbers on unemployment are showing otherwise. The National Employment Law Center showed that the main reason people are out of work is not due to comfort. There are six unemployed Americans for every available job in the market. In addition, many of the Americans who are looking for jobs are not qualified for the positions in need of filling. Those who are seeking payday cash are looking in as many different places as possible. Desperation is pushing people to consider job options they may have previously overlooked.

Unemployment compensation

Unemployment benefits were created in 1935 as part of the Social Security Act. The purpose of the fund was to sustain the unemployed as the economy wavered. Throughout the years, it has proven effective and helped millions of Americans pay bills, stay in their homes and remain financially afloat until new jobs became available. Studies have shown that about 67 percent of unemployed people take advantage of the fund. The bulk of the fund comes from employer taxes, but in times of unusual financial stress, the funds have been extended then scaled back when things return to normal.

The verdict on unemployment and its extension

Despite some debate, the decision to extend unemployment is most likely going to remain intact. Most people use unemployment checks the same way they would use payday cash. They put the money directly back into the economy. Due to a lack of discretionary spending, most of their unemployment check is channeled right into the market. That is the overall goal of the government-to spur people into spending and reinvigorating the economy.

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Tracking the economy

December’s activity was high. The Consumer Report’s shopping index for December was 14.1. By January that index fell to 10.9 and in February, it has already fallen to 6.9. That makes it well below the pre-holiday index and is proving that consumers are being frugal and conservative with their payday cash. In fact, the 6.9 index is the lowest level the index has fallen since it’s been tracked.

Consumers in financial difficulties

Part of the decline in the shopping index was a loss of major appliance buys. During the holiday season consumers were buying stoves, washers, dryers, refrigerators and personal electronics in large numbers. Now, they are drastically slowing down their purchases. Contrary to the move, though, is the fact that consumers are also suffering less financial difficulties. According to Consumer Reports survey, Americans are doing better financially. The biggest difficulty Americans had was affording medical bills and/or medications. That number is now down by 2% since the end of last year. Looking at medical bill affordability is a major factor in tempering the economic state and how consumers are managing financially.

The Consumer Report’s overall index

Consumer Reports calculates an overall index that is comprised of five individual indices: the Sentiment Index, the Trouble Tracker Index, Stress Index, Retail Index and the Employment Index. Here are the numbers reported:

• The Sentiment Index. The Sentiment Index gauges the optimism and pessimism of consumers. Those in the 18 to 34 range were the most optimistic about the future, as were those with incomes of over $100,000. The most pessimistic Americans are those with less than $50,000 in household income and those over 65 years of age. This index was steady throughout February as compared with January.
• The Trouble Tracker Index. This is an index that tracks the economic climate and how many difficulties are predicted in the near future. This index has shown a great improvement over the past month. It was at its height during the height of the recession.
• The Stress Index. The stress index gauges just that: the amount of stress consumers feel due to the economy. That index has fallen since December but stayed at the same level as January. It’s an indicator that though people are feeling better about the economy, they aren’t yet embracing true change. Consumers continue to be reserved in their assessment of the market.
• The Retail Index. The retail index declined after a high in December. It is now leveling off and remaining conservative. It’s returned to pre-holiday season numbers.
• The Employment Index. Finally, the employment index is still low. This reflects the number of job losses in the market. It is indicative of an economy that eliminated a large number of jobs and has yet to replace them.

The future of the indices

The new Consumer Report’s indices are accurately gauging the state of the economy. Over time, it’s hoped that each one will improve considerably, but until they do, consumers are left to continue managing through the difficult times. Though it is hard, many are rallying, getting serious about their finances and hoping for the best.

I know that my spending habits have changed in the last couple of years. Yours likely have too. This change is the result of job cuts, lower pay and the overall financial downturn. We all need the economy to recover and getting out there and spending some money would certainly help turn things around, but few people can afford to do that at this point. We are basically just spending money on the essentials these days, and even that spending has changed somewhat.

Where is Money being Spent?

According to a recent article on the U.S.News site, market research is showing some definite trends in how and where Americans are spending their hard earned money. One noticeable shift is in the amount of debt that most of us are willing to carry at this point. Before the recession people were more likely to buy on credit and to spend money on large items that were not essential. Nowadays consumers are sticking much more to the basics and trying to pay in cash as much as possible, sometimes taking short term loans when necessary.

Thinking Outside the Box

Tough times often inspire more creativity. People do not want to completely give up the pleasures in life. Dinners out with friends, family trips, fancy coffees and home renovations are all things that can be altered to fit a more frugal lifestyle. Organizing rotating potluck dinners at friends’ houses can replace dinners out. Camping or visiting local attractions can substitute for larger family trips. Buying some quality coffee beans, a grinder and a milk frother will allow you to create specialty coffee at home each morning. Doing basic home updates yourself such as painting, can really save money.

Labels No Longer Matter

There was a time when name brand products were king. This way of thinking has all but disappeared in recent years. Particularly when it comes to food items, many people have turned to no name and store brand products instead of the pricier name brands. There are many great-quality products in this category, some of which are even made in the same factories, right alongside the name brand products. Many consumers are finding that saving a few cents on each item really adds up and, with the quality being surprisingly good, they will continue to buy the lesser known brands in the future.

Removing the Temptation

Another finding is that consumers are spending far less time casually browsing stores. They now tend to go to the stores only when there is something they truly need. On the same note, if there is a larger item you need, such as furniture or appliances you can often find used ones for a lot less online or in the classified section of your newspaper. Conversely, if you have items that you no longer need you can make some extra cash by selling them off and you will be de-cluttering your house at the same time.

A Little Extra Help

We are all doing what we can to save money and get by from one payday to the next. Unfortunately, sometimes unexpected costs arise before payday. In these instances you may want to consider a payday or installment loan. Both are quick and easy to apply for online and can offer you a way to get through the rough patch.

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How the economy is recovering

The personal cash loan increased in usage this past holiday season. In November many people found themselves coming out of the recession with few options to manage Christmas gift purchases. Now that the holidays are over and people are recuperating financially, it’s time to put together some numbers as to how the economy is shaping up. Retailers have much smaller inventories than the past but also have slightly better-than-predicted sales receipts.

Inventories and Christmas

A lot of retailers are reporting low inventories. In fact, their inventories are so low that they have had to already bring in new orders to restock their locations. In former years, retailers were able to stock up enough product to last through the Christmas buying season and beyond. This year budgets were tight and overbuying was not an option. As a result, shoppers looking for after-holiday sales may have to search hard to find them.

NPD analyst Marshall Cohen said, “Retailers are much more nimble this year. Their ‘Plan B’ is to have new receipts at the ready.” He noted J. Crew and Coach as two stores that had already restocked their shelves for the post-holiday rush. Part of the higher profit margin can be attributed to ordering that was in line with weak demands. This allowed retailers to retain a higher price point on items and that is what brought in added profits.

John Lonski, chief economist of Moody’s, stated, “The latest holiday shopping season wasn’t a rip-roaring success, but at least it met or slightly exceeded expectations. Consumer spending is indeed in a recovery mode, which brightens prospects for 2010.”

Overall spending is on its way up

One of the indicators most economists have been watching closely is consumer spending. It fell to its low point at the height of the recession when the unemployment rate was at its highest. Spending rose 3.6% however from November 1st of this year through December 25th. That number was well beyond what industry insiders were predicting for the end of 2009. Studies are showing that consumers were using savings, personal cash loans and credit to rekindle the buying patterns of their pre-recession lives. That’s good news to the market because its full recovery is dependent on the reinvigoration of consumer spending in the US.

Despite the good news

Despite the good news with spending, there is still an issue with numbers for the holiday season. Analysts warn that it is still too early to truly gauge how well the market is recuperating from the economic downturn of 2009. Though there are some signs that things are on an upswing, there is still a period of recovery that every business and consumer needs to go through. Retailers are expected to extend their specials throughout January of 2010 in an effort to encourage spending. Lonski added, “The best thing businesses can do right now is to push for spending. That is going to mean creating deeper discounts and specials for customers. It’s imperative that businesses see how this encouragement is the only thing that will continue to turn the market around.”

Recovery after the recession

Though the recession is over, the US still needs to go through recovery efforts before it returns to normal. Consumers are still feeling their way in the dark, trying to best protect themselves from future financial disasters. In terms of spending though, they are ready to start making purchases. By using savings, personal cash loans and credit hopefully consumers will gain confidence in the market once again.

Need a Cash Loan? Apply Here!

Current data states that over 10 million households in the United States are struggling to pay back payday loans. One can only assume from this that people are spending more than what they earn. There could be a number of reasons why this figure is shooting up constantly. Payday loans are increasingly meeting demands from people who seem to run out of money frequently, and the costs that people incur on these loans are high.

Are Declining Wages to Blame?

There is no doubt that companies have looked to cut costs during the recession. While some people may have faced wage cuts, others may have been laid off. Sudden changes in income or even the complete end of an income can affect the quality of life for many. But are people really changing their standards of living to meet the decline in wages? Or are they simply trying even harder to keep their high standards of living alive while going into debt even further? This is a question that every person facing a decline in wages must ask themselves in order to get out of debt.

Small Debts Look Big

The average income in the United States is about $30,000 to $40,000 a year. Whether this income is sufficient to meet all the needs in life depends on where they live. For example, those who live in small towns may be able to manage on this income, while those living in larger cities may end up struggling with the same amount of money. Housing costs alone can take at least a third of their income, leaving them with little room to maneuver for other expenses. Under the circumstances, looking for a payday loan to act as a supplement to the income is certainly not a bad option.

Look to Payday Loans for Help

If you are struggling just to meet your monthly expenses and you have nothing left over for the essentials, maybe taking out a payday loan will help. The money is available for short periods and can be paid back with your next paycheck. Payday loan lenders are more willing to lend again to someone who pays back their loan on time. Debts tend to emerge when people start misusing the easy credit that is available as an option for higher expenses. When people start spending $500 or $1,000 above and beyond their income, they ultimately end up in a huge debt and complain about payday lenders.

Reduced Expenses Reduce Reliance on Loans

When your income is reduced, one of the first things you need to do is cut your variable costs, and expenses that are not essential should be cut first. Look at your entertainment costs such as cable and internet—are they higher than they should be? This means that if your cable bill is extremely high, you need to look at getting rid of the channels that you are not using. And if you really cannot afford the high speed internet, find other ways to access the internet that will be easier on your budget. Even cell phones can be replaced with a land line, such as using Vonage. If you still find yourself short of funds, there is always the payday loan that is available within a matter of hours to help you find more money for essentials.

Start Your Payday Loans Application HERE!

President Barack Obama and a group of several different types of health care providers have joined forces and promised to stem the increase in spending on health care in the United States.

Both the health industry leaders and the White House administration intend for this move to bring the country closer to having comprehensive health care for everyone in the United States.

A common goal

Obama ultimately strives to make health care more readily available and affordable for Americans. Hospital representatives, doctors, insurance companies and drug makers were all present at the announcement made at the White House today.

These health-care industry representatives pledged to sharply reduce the growth the country has seen over the years in spending on health care. Perhaps now fewer Americans will have to weigh the options of whether to get personal loans to cover health care costs or skip preventative procedures.

Slow going

The New York Times explains that this move does not mean the health-care industry has promised to reduce costs:

The pledge, if kept, would not reduce overall health spending but merely slow its growth. Still, White House officials said the plan could save $2,500 a year for a family of four in the fifth year, and a total of $2 trillion for the country over 10 years.

The hope is to make a move to comprehensive health insurance less expensive to the federal government.

Changing times

An article in the New York Times compares today’s announcement with Bill Clinton’s efforts to reform health care during his presidency in the ’90s:

The pledge from some of the very groups that helped block President Bill Clinton’s efforts at health-care overhaul in 1993-94 — crippling any chance of such change for years — appeared to bolster Mr. Obama’s hopes. … The seeming inevitability of some sort of major overhaul appears to be driving the hospitals, insurers and drug makers to seek a larger role than they had in the ’90s in shaping the legislation.

Obama said the change is due to the widespread recognition that more and more United States citizens every day are in need of aid with the cost of health care. Also, so many other developed countries have universal health care, and that has made the system more appealing and palatable to those who once opposed health care reform.

Provider pledge

The written pledge from six industry leaders reads:

“We will do our part to achieve your administration’s goal of decreasing by 1.5 percentage points the annual health care spending growth rate, saving $2 trillion or more. This represents more than a 20 percent reduction in the projected rate of growth.”

It all started when my wireless system at home stopped working. My desktop computer worked fine but the laptop was dead. I called in my technician and he slaved away for ten minutes and then said, “Everything’s fine, it’s fixed. I brought it back to life. Why don’t you get yourself a decent screen if you’re doing so much work? Much easier on the eyes, you know. Just buy it, bring it home, plug it in and pray.” I laughed at his little joke. Plug in and pray indeed! I paid, he left and the little seed he had planted began to grow until I couldn’t stand it.

I raced off

I shopped around on the internet and compared prices. Then I checked the amount of a Personal Loan I could raise from the Personal Money Store to see if I really could afford one of those nice slim, wide screens in place of the huge box I have on my desk. It all fit together nicely and I raced off to the computer store.

Things have changed

There is now a computer store on every corner, not like a few years ago when you really had to drive around and look for one. This one was in the parking basement of a small strip mall and despite the galloping recession, the place was packed with people. I stood in line and was finally directed to the Screens and Peripherals department. Another line and finally I was in front of the screen man. I came home with my package humming a Pay and Pray mantra.

The weather factor

It’s summer, every day more glorious than the previous. The days are not yet fiery hot and the humidity hasn’t started but after half an hour scrunched down behind the computer screen, I was wet and frantic. What’s the prayer for a brand new computer screen that doesn’t switch on, I yelled to nobody? Dead, a brand new, just-unpacked, computer screen. I called my technician but there was no answer. Just then the screen switched on. I collapsed into the chair and breathed a short prayer of thanks.

The *?!#?!* Mouse!

No mouse! Everything works but there is no mouse. Why didn’t I ask the technician to do all this? I could have screamed with frustration. I hate these 2 minute jobs that turn into 2 hour monsters leaving one drained and irritable. I went to the kitchen and ate in silence. Back in the study the mouse came to life on its own and when I walked in, the computer and screen and mouse were all waiting anxiously for me to sit down and start working.

Just testing

These things are done to test us, to test our ability to sit things out, to see if we are up to scratch in the funny games that life plays on us.

Everything works.

This little tale has a happy ending. Everything works. The new wide screen is great and everything is large enough for me to see without leaning into the words. I bet my bank balance swells too!

As the government restructures its spending, so are Americans by using installment loan options. More than ever, the recession of 2009 has brought a financial near-panic to the U.S. People are scrutinizing their monthly income to expense ratios and looking for ways to pay debt. Installment loans, while once thought of as extreme measures of getting upfront money, are now becoming more acceptable and more widely used.

How long with this last?

The recession is expected to last throughout the remainder of the year and well beyond, with an estimated turn-around time of June 2010. The condition of the economy at that time is unknown. Analysts say they hope for a true change, but it has yet to be seen what that will specifically mean for tax-payers. All that is certain is that individuals, businesses and the government are buckling down and maneuvering the unsteady recession waters as best they can.

The government is cutting corners on spending

On April 18th President Obama announced he would be eliminating “wasteful and ineffective” government-sponsored programs as a part of repairing “fiscal accountability to the federal budget.” These changes are going to be discussed specifically on Monday, but the goal will be to whittle down expenses and programs that are no longer relevant. The government recognizes that without major changes, debt will create an impossible condition to recover from.

For the first half of 2009, the government noted a $956.8 billion budget deficit for the U.S. That number has tripled from last year and much of the increase was created by the business bailout. Not to say that the bailout could have been avoided; if it had been, many more companies would be closing doors and many more people would be unemployed. The bailout was a necessary decision for businesses looking for relief.

President Obama assured that the government is going through its own spending with a fine-tooth comb, citing the elimination of a $3 million contract for new logos for the Department of Homeland Security. This contract has been in existence since 2003. “If we’re going to rebuild our economy on a solid foundation, we need to change the way we do business in Washington,” said the President. “We need to restore the American people’s confidence in the government – that it is on their side, spending their money wisely, to meet their families’ needs.”

Americans take a cue from the government

Americans are closely watching governmental handling of the recession and the deficit. Installment loans are an option to handle over-extended credit, payments that are due and emergency funding needs. Consumers need to be equally as vigilant with their finances as the government is trying to be, because no one knows when relief will truly break through into the daily economy. What is certain is that economic stabilization is still months away.

Citizens and installment loans

As the government works to restructure its own budget, so are U.S. citizens. They realize that without some drastic and consistent change, they also are at risk of financial disaster. Installment loans are one option more people are researching because they offer necessary assistance to meet debt. The application process is simple and the peace of mind knowing bills are taken care of, is priceless.

“Retail Anarchy” has gotten mixed reviews and a lot of attention. This nonfiction novel about consumerism examines marketing, brand name loyalty and spending. Reviewers on Amazon.com said “Retail Anarchy” made them laugh out loud.

Of course, the book has only been out for three days, so you sort of have to wonder if the powers that be are using the same marketing manipulation that is criticized in the text.

About the book

“Retail Anarchy” begins with the story of George Clinton, who managed to work the system by releasing music by the same band through several different record companies by using a different name.

The book explores how marketers and companies manipulate consumers. It compares advertising to funk music and, according to readers, explains how to end up with a whole car full of pudding or cell phones without needing a payday loan.

About the author

“Retail Anarchy” writer Sam Pocker also keeps a Retail Anarchy blog, retailanarchy.com, which he labels simply “a blog about consumerism.” He also hosts a “radio talk show” (podcast) about “bargains, discounts, deals, and freebies.” The podcast, “Your Mileage May Vary,” can be downloaded from the Retail Anarchy blog.

Unsatisfied customer

Apparently, “Retail Anarchy” is not every reader’s cup of tea. Blogger  Unmainstream Mom says:

“Retail Anarchy is about a self-righteous jerk making fun of people ‘too stupid’ to save money and bragging about how he beat the system. Not recommended, even from the library. Reading this book was a waste of time.”

Youch. Lucky for Pocker — though Unmainstream Mom and many of her followers deem him “rude, judgmental, wasteful, and selfish” — he has plenty of fans out there, too.

Good reviews

A response to Unmainstream Mom’s post hails Pocker for donating products to charity. All of the reviews posted on Amazon.com are resoundingly positive. One reader writes:

“After reading Sam’s book, you’ll be a more informed shopper that looks at purchasing/consuming from a totally different perspective.”

The reviewers on Amazon all agree that Pocker’s book is hilarious. According to Amazon, Pocker tours the country as a “stand-up economist,” entertaining audiences across the country.

Governor David Paterson and top legislative leaders Sunday finished negotiations on the proposed budget for the state of New York. The governor, along with Assembly Speaker Sheldon Silver and Senate Majority Leader Malcom Smith rolled out the $131.8 billion package.

Yes new taxes

Critics, of course, had plenty to say about the governor’s proposals. The package raises taxes and ups spending. Paterson says taxes must be raised to rectify a $16 billion budget gap. The budget also eliminates a property tax rebate. In total, the plan brings in $7 million in new taxes and fees.

But before you New Yorkers run out and get payday loans, CBS reports that taxes will only be raised for the wealthiest New Yorkers.

A little help from the feds

New York state will receive $7.2 billion from the federal stimulus package. The biggest spending boosts are for education, although there are some pretty big cuts to education as well.

Less for the little guys

The budget includes cutting funding for community colleges in New York by $49 million. However, it adds $125 million in funding for the State University of New York. That will put the total funding for that university at $2.5 billion. It also give $86 million more to the City University of New York, for a new total of $1.4 billion.

It also adds $50 million to the tuition assistance program.

More on schools

As for primary education, public school funding will increase by about $1.1 billion. The  new version of the budget does not contain the $700 million cut in school spending Paterson proposed in December. The new spending will make New York one of the highest spenders in the nation on education.

Bottling up taxpayer money

5 cents

The budget adds to the state’s bottle bill. It requires a 5 cent deposit on water bottles in addition to the 5 cent deposit already required for carbonated drink containers. It ups the cigarette tax on cigarillos so it is equal to the regular cigarette tax.

I have suffered a dramatic change. All of a sudden I have to think about spending money, or rather, not spending money.

My disappearing shopping support system

I built my personal financial system carefully over years and years of spending money, sometimes cautiously, sometimes rashly and sometimes wildly. At all times I planned, saved and budgeted, always keeping my spending directly linked to my earnings.

Now I’m in a “hold spending” period. I’ve saved hundreds of dollars this year by getting some good deals on financial products. You can do it too.

Our shopping expeditions

This small section belongs under the advantages/disadvantages of working at home. Years ago I fell, or was sucked, into the habit of accompanying my wife on her trips to the supermarket. These outings ranged from ‘totally boring’ to ‘mildly interesting’ until I discovered that there’s a man’s world in the supermarket. I discovered the 10 varieties of olives, the 20 varieties of pickles and the carousel of fiery hot spices. I found the exotic cheese counter and the cheap t-shirt rack. So I bought what I fancied. My job was great, the salary package was generous and I never thought twice about throwing out a few ounces of uneaten green cheese.

Layoff hit hard

Then the owners closed down the company I was managing – not enough work to justify, blah, blah, blah… the faltering hi-tech industry, yak, yak, yak… So our shopping trips have changed. I still accompany my wife. We go to the supermarket with a list. We buy the items on the list and come home. Money saved: Considerable.

I’ve seen some changes

One always learns as one goes through life. Long ago when I had a problem with money, my first port of call would be the bank and my friendly bank manager who would always lean over backwards to help me. That’s gone. These days when I have a problem with money I put as much distance as I can between me and the bank. I’m just another customer and I’ve never met the manager. I even changed backs recently, mainly because the bank on Main Street offered better deals than the bank on Elm Street. If the bank can treat me as a casual customer, then I can treat the bank as a casual bank.  When I need help with money, I turn to payday loans.

Check your insurances

I can’t remember exactly why I got into this. I think I had a sudden urge to make sure everything was in order in case I got hit by a bus. The results were surprising. Other than stuff like life insurance, pension and savings which I regard as a ‘do not touch’ subject unless the agent is present, I looked at such fascinating items as household and auto insurance. It’s been years since I received these policies. If you work on the basis of ‘no claims, no look’ as I do, the years slip away.

I took them out and called a couple of new acquaintances in the insurance business. Surprise! The trusty old agents I had used all these years were no longer looking after my interest. They were simply renewing my policies every year without looking at the premiums. I replaced these policies with a new agent and saved huge amounts of money for the same insurance. I also told the new agent that I would be shopping around for new quotations at every renewal date. If the old agents didn’t look after me do I still have to look after them?

Life was stressful enough when the situation occurred that turned you to take out a personal loan, but now you need to accumulate the cash to pay it back.  Do you worry about how to come up with the money to pay off your personal loan? Is the stress of all of this disturbing you?  Could you use some simple and effective tips to save money, so you can apply that money to your personal loan? If the answers to these questions are, “yes,” then this article is for you.

Droplets make an Ocean

You may look at the tips, below, and think that the little bits of money you are saving in each of these situations is just not enough to make a difference, but, have you heard, “Droplets make an Ocean?”

Economical eating saves money

Economical eating refers to the eating habits that will save you a lot of money. Eating cannot be stopped but ways of eating can save lots of money. First, if you are a food-lover, then you might have a tendency to go to restaurants and fast food to eat. This is the first change you can make. Make your meals at home and save.

Or, if you feel you have to go out, look at the dollar menus of your favorite fast food restaurant.  And keep your eye out for coupons.  If you go to a nice restaurant, cut out the drinks, alcoholic or even soda, and drink water.  And speaking of cutting out the drinks, cut down on the bottles of soda and fizzy drinks at home and work too. Drink water, from the tap, if possible where you live, and save.

Save money on your clothes

Many of us spend too much on clothes, don’t we? This needs a change as well. I am not against buying new clothes and wearing them. I am also not asking you to wear the same jeans for 5 years or so. But money can be saved if you can compromise on one thing when buying clothes-buying brand names. Advertisements looks good on T.V. but it does not mean we have to buy every T-shirt our favorite actor is wearing.

Don’t buy clothes only for the sake of its brand. In reality, there is no such thing as ‘brand-value.’  You will pay 3-4 times the value of the shirt to get the brand name. Try to avoid buying any new clothes until your personal loan is paid off, but if you have to buy something new, avoid costly brand names. One more clothes shopping tip, if you e-shop, search for sites giving free shipping charges. This can save you a lot of money.

Enjoy less today, enjoy more tomorrow

No, this has nothing to do with enjoying your life, but rather it deals with purchases. What do I mean?  Well, say it is the Christmas season.  Instead of buying gifts before Christmas, can you celebrate the week after, saving you maybe even hundreds of dollars in the after Christmas sales?  This is what I mean by enjoying more tomorrow.  Or, what about a product that is launched? Don’t try to be the first customer on the block with that new electronic game. The price will go down in no time.

And what about a vacation.  Should you take a personal loan to take your family to Disneyland?  Wait until your first personal loan is paid off, with all these money saving tips, and then save until you can afford the trip.  Go camping or visit family or friends.  Stay at their home to avoid hotel costs.  But do watch out for long drives. Although the price of gas is down, it is not free and, another thing to consider is that burning fuels makes the atmosphere unhealthy. But that’s another story for another day.

Paying off that personal loan

Follow the tips above properly and apply the savings to your Personal Loan.  You will have that loan paid off in no time.  And that stressed I talked about at the beginning of this article, will subside.

Could this little piggy bring the economy crashing down? I don't think so.

While it’s true that more people are relying on cash advances now, there are also a higher number of people stashing money in their savings accounts.

I will be the first to admit that when I read the headline “Why Saving is Killing the Economy,” I rolled my eyes.

Sensational saving skeptics

Call me cynical, but I just have a hard time believing that hard-working Americans stowing $20 out of their paychecks is “killing the economy.” For one thing, some would argue it was already dead.

I completely understand that consumer spending is key to supporting a thriving economy. But given the fact that more and more people need cash advances, I’d say we need not look at low- and middle-income Americans as the culprits in this “saving crisis.”

Show me the money

All that’s happening is people aren’t spending money on things they don’t need. Yes, that does mean businesses that deal in frivolity run the risk of going under. Or maybe they just need to market their frivolousness to a different market.

Will Smith is "Hollywood's Most Valuable Actor." I say: Smith, get to shopping!

What about all of the actors, athletes and big business owners who have millions, if not billions, stowed away? I think if Paris Hilton went on a major shopping spree it’d make a much bigger difference than me emptying my $100 savings account.

Keep your money

If you’ve got a few dollars tucked away as a cushion, it’s not going to save someone’s job if you spend it. Buy what you need. That’s enough. The economy did very well in the ’50s when the savings rate was between 8 and 10 percent. Right now it’s at 3.6 percent.

Economists are saying that if everyone suddenly begins saving 10 percent of their income we’ll have a real problem. Call me crazy, but going from “People are saving 3 percent of their income,” to “Prepare for the worst! Everyone is about to start saving 10 percent!” is a bit extreme.

Wrapping up

To summarize my point, I understand that consumer spending will help the economy. But it frustrates me when I read headlines that say “saving is killing the economy.” It’s just so sensationalistic — kind of like when cash advances and payday loans are referred to as “predatory lending.”

Payday loans have helped consumers before and during the current recession, and they will continue to be an emergency cash aid after it ends (Q3 2009?). America’s recession has darkened the doors of many businesses that couldn’t shoulder the burden of so much lost business. Or, if businesses don’t close outright, employee layoffs have been distressingly common.

However, not all small businesses have withered under the weight of the second-largest recession in American history. In fact, Stacy Perman of Business Week writes that “the recession has injected life” some small businesses that are doing well in spite of the downturn. In some cases, they may even be doing well because of it.

Consumers looking for value

Perhaps it’s to be expected that pawn shops and thrift stores have done well during this recession, as shoppers are looking to save money however they can. These kinds of stores have enjoyed higher business volume and a broadening customer base. National Association for Resale & Thrift Shops Executive Director Adele Meyer said that “More people are trying resale than may have done before. And once people shop resale they realize what value and quality they’re getting for the price. They become hooked, and this becomes their way of shopping.” The downside of this for these stores, of course, is that it’s difficult to maintain inventory during the traffic upturn.

Keep it running, keep it safe

According to Perman, auto mechanics and general repair stores have seen “record business in some cases” over the past half year or more. This indicates that more people than ever are looking to extend the life of the cars, appliances and tools they own, particularly in cases where repairs are significantly less expensive than purchasing a new one.

Unfortunately, as the recession causes some to resort to desperate measures, theft reports have risen. Thus, sales of home safes has been up and private investigators have found more work. Also unfortunately, desperate consumers who lose control of payments for homes, cars, boats and more have also found that repo men are out in force. Their business has, according to Perman, reached “record levels.”

Payday loans grease the wheels

Payday loans give many consumers the short-term bridge they need to make it from “Point A” to “Point B” during recession times. For some, payday loans can even be a way to temporarily pay down larger debt or bills to avoid expensive penalties. But spending as a whole is definitely down. This hurts most businesses, but for some little engines that could, recession greases the wheels.

Related articles

• Business Development Bank will get $350M injection, Clement says (cbc.ca)
• More consumers likely to seek help in 2009: debt counsellor (cbc.ca)
• Financial crisis: ‘iPod generation’ most at risk from credit crunch as one in five has £10k debts (telegraph.co.uk)

To find an expert’s opinion on the matter, Jennifer Schonberger of The Motley Fool recently interviewed Liz Ann Sonders, chief investment strategist with Charles Schwab. According to Sonders, we’re more than halfway there.

And the worst part is now

Sonders’ best guess is that

Sometime in the third quarter of 2009, we’ll get the official word that it’s over — now keep in mind, given that it took the NBER [National Bureau of Economic Research] a year to tell us we were in one. The normal span of time between when recessions have ended historically, and when they’re declared in the end, has been 15 months. So if I’m right about the third quarter of 2009, we’ll probably get the word on that some time in 2010.

But right now America is at the bottom of the pit. Corporate inventories are going up because nobody is buying. Consumers are saving for a perpetual rainy day, but even then they’ll look to cash advance loans for added help. Unpurchased inventory stockpiles has caused an artificial inflation of the gross domestic product, making appear better than was expected.

What must still happen?

Fallout from that, Sonders feels, will cause first quarter 2009 readings to be dismal. Then the news will “become progressively less sad.” Since there has been relative calm following a volatile fourth quarter 2008 – largely because President Obama’s economic stimulus is about to go into effect – credit markets are beginning to become more fluid again.

Despite continued volatility in 2009, Sonders sees the stock market rising. But if that rise is to be meaningful, the $9.2 trillion in cash “sitting in nothing but short-term, safe investments like Treasuries, bank and savings accounts and money market funds” must move. It must flow. Since depressed asset prices are low, Sonders says that for some, it is time to buy.

However, she advises that all should assess how much risk their willing to tolerate. “If you’re now way under an asset band of, let’s say equities, and your circumstances haven’t changed, and your time horizon hasn’t changed, then absolutely you should be thinking of putting some money back in.” However, if a consumer already has significant money in stocks, an explosion of increased investment is discouraged.

Payday loans: your bridge to recession’s end?

While they are not a long-term solution to larger financial issues, payday loans can certainly be the right tool at the right time for your budget. Just the boost you need? Perhaps. During this recession and beyond, it always pays to shop around. If you need emergency cash fast and crave convenience and discretion, payday loans may be what you seek.

Related articles

• Rally Attempt Ends, NBER Makes It Official (chrisco.wordpress.com)
• The Deepest Downturns (usnews.com)
• R-word sends markets into dive (thestar.com)

America’s ailing economy is in need of quick aid, a true payday loan that will help bridge the way. Unfortunately, for as much as President Obama has been encouraging quick action to get a stimulus package passed, we may not see real change for some time. Many even argue that the stimulus package does not take the optimal path toward healing and reform.

However, the package moves forward. According to a breaking BBC News report, “the Democratic-controlled Senate voted 61-37 to approve the measure, with few Republicans opting to back it.” According to reports, the economic stimulus plan that the U.S. Senate has passed will cost somewhere in the neighborhood of $838 billion.

Interestingly, Vice President Biden has been widely quoted as saying that there is a “30 percent chance” that this stimulus package will not work. Many pundits consider that estimate to be conservative.

What’s next?

Next, a number of things must happen. First of all, it is expected that the Senate-passed version will enter into negotiations so that it can be “reconciled” with the legislation that has already passed the House of Representatives two weeks ago. After that, it will cross President Obama’s desk for the final sign-off. His signature could mean the cash advance that the Dow Jones has been waiting for. Watch those indexes…

President Obama has said the package will “create up to four million jobs and help lift the economy.” He expects the final House/Senate package to reach his desk by February 16.

Moving forward

The House and Senate measures are reported to be “largely similar.” Differences that will go up for debate include how lawmakers are going to expand the Medicaid and other various spending priorities. In the House version of the bill, greater resources are allocated to schools, local governments and individual states. On the other side of the coin, the Senate bill focuses more on tax cuts.

Whatever happens, this stimulus package will at the very least bring hope to many. It is the hope of Cash Advance Mojo and everyone at your payday loan source, that the stimulus package and other bailout money is used to fix the broken economic system, rather than trying to merely plug a hole with money.

Related articles

• Congress Talks Stimulus Amid Obama Push (abcnews.go.com)
• Obama aide urges stimulus haste (news.bbc.co.uk)
• Stimulus Compromise Reached in Senate (takepart.com)

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A British Bank is run with precision!

During the economic crisis, payday loans have helped consumers during short-term emergencies. Yet the root causes of the crisis – banks – must be repaired if this kind of consumer credit can continue to exist. The world banking establishment has been reeling for months as the economic crisis has dried up the rivers of consumer credit. Banks and short-term consumer lending must go on, so banks are attempting to right the ship. That’s what the Bank of England is trying to do by reducing interest rates to one percent, reports the BBC. This comes none too soon, as UK unemployment had risen to 1.92 million by the final quarter of 2008.

The general idea here is to encourage lending, but many are concerned that such low interest rates will also harm savers. Business groups feel that the new rate won’t be enough to fix the problem. In an official statement, the Bank of England said this cut, as well as other government measures, “would provide a considerable stimulus to activity as the year progressed.” The European Central Bank has yet to act in kind; rates are currently holding at two percent.

Will it be enough?

Paul Broadhead of the Building Societies Association told the BBC that such a low rate “could hinder the funds available to societies to lend as mortgages.” In the corporate sector, The Federation of Small Businesses believes that the cuts aren’t working as the Bank of England intends and that other assistance is required for businesses to remain solvent. Yet the Bank still anticipates a “significant impact.” Perhaps the impact will be the opposite of what they intend? Citizens who cannot get short-term loans from banks will still have the option of a cash advance, however.

Some like the cut, however

Ernst & Young Item Club supported the cut, but encouraged that they drop even further, “possibly to zero.” John Philpott, chief economist at the Chartered Institute of Personnel and Development said: “The Monetary Policy Committee is right to cut Bank Rate to 1%, even though some question the merit of doing so without greater effort to increase the availability of credit to hard-pressed businesses.” As Philpott sees it, this is the kind of early action needed to boost the money supply.

Saving for a rainy day? This is it! Spend!

Time will tell what impact the lower interest rate will have, and whether more cuts are on their way for the Bank of England. Your payday loans source wonders about the argument of the savers, however. Isn’t increased spending needed to stimulate the economy?

Related articles

• Bank Rate: Cut Again, Say Experts (news.sky.com)
• Don’t cut interest rates building societies tell Bank of England (telegraph.co.uk)

photo by flickr

In an AP article on Breitbart.com entitled “The wealthy turn stealthy as economy weakens,” we see how the self-conscious rich are doing whatever they can to camouflage their shopping habits. Despite their ability to live the lifestyle they are accustomed to – even during the current recession – it is distressing to hear that some are cutting back their consumption simply because they wish not to offend. Your payday loan source finds this to be maddeningly disingenuous.

“The fashionista is now a recessionista,” says Burton M. Tansky, president and CEO of Neiman Marcus.

“Luxury shame” and “stealth wealth” is prompting high-end shoppers to dress down, hide their purchases in plain white paper bags, or have purchases shipped home so that they won’t have to deal with disapproving (or envious) looks. New York personal shopper/stylist Lucyann Barry reportedly had a $1,200 Gucci handbag delivered to a client as a gift so the client’s family wouldn’t scorn her for having bought it for herself. Such a convenient sense of discretion… it’s something no fax payday loans offer its clientele, by the way…

But some have slowed the spending

The AP reporter gives us the example of a successful entrepreneur who is spending only $400 on regular hotel rooms instead of $1,000 for a suite. What he says is telling of how little people in America – rich or poor – understand about the economy works:

A lot of us are downsizing not only because we have to, but because we think it is the right thing to do.

No! The right thing to do is to continue to spend and stimulate the economy. The money supply must remain fluid. The AP reporter understands; he writes that “there’s another way of thinking about it… money dished out on pricey dinners and clothes keeps people employed.”

A different outlook

In “The Big Bing Blog” on Fortune Magazine’s Web site, author Stanley Bing writes about the SkyMall catalog in relation to the recession. He is of the opinion that people buying things from said catalog is a sign that the economy will stabilize.

“I still believe that in the end we’re all going to be all right. If people are buying meerkat gang sculpture for their yards and living rooms, can recovery be far behind?”

You can order your very own Harry Potter wand from the SkyMall catalog. (Warning: Wand does not actually contain magic.)

But are people doing that? Bing argues that the SkyMall catalog, and the marketing business in general, makes us think that we actually need things like cigar humidors and slippers with built-in night lights.  I admire Bing’s optimist, and I understand that his blog is meant to be humorous. Still, I can’t help but wonder if Americans are still making frivolous purchases like these.

Cold, hard facts

Statistics indicate that they are not. The Commerce Department has released its official report on just how dismal holiday sales were this season. Wall Street had predicted that the decline was about 1.2 percent, but final  figures show that sales fell 2.7 percent.

Before you go thinking that maybe Americans did their holiday shopping early this year: It was the sixth straight month of decline. I’m no financial guru, but it seems to me that if people were going to be making frivolous purchases, they would have done it for the holidays, even if they had to take out payday loans to do it.

Aftershocks

In the wake of these reports, some major retailers are announcing big changes. California department store chain Gottschalks is up for sale, and it has filed for Chapter 11 bankruptcy.

Famous luxury retailer Neiman Marcus Group Inc. says it is going to cut 375 jobs. Macy’s department store is closing 11 stores, which will affect 960 employees. So between those two companies, I can safely assume that at least 1,335 people out there will be even less likely to be making discretionary purchases.

Job loss leads to job loss

So, because consumers aren’t spending enough on retail, employees from retail store are out of a job. If (when) those employees go on unemployment, their incomes will be slashed by more than 30 percent, leading to even less spending and more … well, you get the picture.

Thus, it comes as no surprise to me that Federal Reserve says this low-spending trend is continuing and worsening this month. An AP reporter says “job cuts, sinking home values and cracked nest eggs have made American consumers wary of spending.”

Ahem. I think that by “wary of spending” she means “unable to spend.”

A slow fix

The only way I can see to change this trend is for employers to start hiring instead of firing. American consumers aren’t going to suddenly start spending money they don’t have, especially considering the credit crunch going on.

So Obama has the right idea by including programs that create jobs in his American Recovery and Reinvestment Plan. You see, the government will spend money it doesn’t have to hire people to work on roads and bridges and alternative energy sources. Then perhaps those Americans will start ordering antique-style gumball machines from the SkyMall catalog and all will be well again. Perhaps.

The future of the American way

Are we changed forever? Americans, especially those who have lost their homes, have learned some hard lessons in the past year. When this is all straightened out, will Americans really go back to maxing out their credit cards at luxury department stores?

No one can tell the future, but it’s always fun to make predictions. So, what do you think? Will Americans start using payday loans because they absolutely must have that UV-ray-blocking beach canopy right now?