Capitol Blog » Money

Avoiding Financial Troubles

Jim — Mon, 08 Jun 2009 01:50:43 +0000

In these tough economic times many people are struggling with staying out of financial trouble because of limited funds and too many bills needing to be paid. Avoiding financial troubles doesn’t just pertain to a bad economy because people can fall into trouble even when the economy is roaring. But right now is the worst time to fall into financial trouble because of the unsteady job market and economy in general.

Our first tip is to pay off credit card bills when they are due and not to pay the minimum. If you pay the minimum of the bill then the remaining balance will be subject to interest. This is what gets people into trouble in the first place. Pay off the credit card bill in full when the money is due and problems will be avoided.

The second tip we have to offer deals with compulsive shopping or buying. Being a compulsive buyer or shopper means that you spend money on items you do not need for everyday living like soap and toilet paper. Removing any bad shopping habits like being a compulsive buyer can help people avoid financial troubles. Stop spending money on items that are not needed on a daily basis and life will get easier.

The third and final tip we are going to offer today is to acquire medical insurance if you are not already medically insured. Why? Paying for a hospital visit out of pocket can cost thousands of dollars and ruin a person’s financial accounts. Spending roughly $150-$250 per month on medical insurance is better than spending $5,000 at one shot for a hospital visit because you are uninsured.

Being a First-Time Buyer in this Economy

Jim — Mon, 08 Jun 2009 01:40:33 +0000

Buying a home, no matter how large or small, can be an expensive venture for anyone at any stage of their life but it can be especially difficult for a first-time home buyer in this economy. What type of home should I buy? What type of home can I afford? Where should I live? How much in yearly property taxes can I afford? All of these questions are tough to answer and can only be answered by the person purchasing the home. There are some advantages for first-time home buyers in this economy that will be outlined in this article.

For starters, first-time home buyers are provided with an $8,000 tax credit from the government for the purchase of their first home. Now, the buyer can use $5,000 of that tax credit towards closing costs, another added benefit of purchasing a home in this economy. It doesn’t matter how large or small the home is, whether it is a condominium or an apartment, or if it is a trailer home or a single family home; the $8,000 tax credit applies to all first-time home buyers.

The second advantage of being a first-time home buyer in this economy is if you have nothing to sell on your end. This is definitely a buyer’s market right now and sellers are having one heck of a difficult time right now. So, if you are a first-time home buyer and don’t have another property to sell because you either rent or live with your parents then you are in great shape. You can purchase your new home and not have to wait to sell your current home to use the money from the sale. Keep your head up, the market will improve and so will the economy.

Get out of Debt

admin — Fri, 01 May 2009 16:52:59 +0000

The stock market and the home value crisis was just the tip of the iceberg. These homeowners that owe more than their houses are currently valued have another problem in their portfolio. The last couple of years have been ones of free credit for consumers. Stores, credit card companies, and banks gave out credit like candy. We are about to the see the horrible affects of those loans in 2009-2010.
Credit cards offered o% cash loans to consumers who ate them up. Now these companies have decreased their credit lines and jacked their rates as they realize that their offers were not warranted. They know that many defaults are likely and that they must recoup as much money as possible with higher rates now before the Obama administration makes it easier to get away from these debts.
It is very important for us to get out of debt in any way possible. Their are many unsecured debt relief programs out there that can help you drastically reduce your payment and crawl back into the black. Sure you may have a small blemish on your credit report but it’s much better than carrying huge balances that will never be paid off. If you have a lot of this debt, please seek credit card debt help.

Student Loan Crisis

admin — Fri, 01 May 2009 16:35:38 +0000

Every aspect of the loan industry has been severely affected by the recession. I was fortunate enough to graduate in a year where the rates were low and the loans were readily available. I refinanced all of my outstanding loans into a 2.9% package and haven’t looked back since. I owe a lot of my success to these loans.
Students pursuing degrees at this time are having a more difficult time getting financing and good rates due to their lack of credit and the amount of defaults on the market. Most cases require a backing from their parents to secure the loan and most parents are in crisis with their homes and jobs. The issue has compounded to the degree that it threatens the higher education of tomorrow’s leaders.
Student Loans are becoming more accessible through private companies and the government. It is very important to make payments on time and not default on these loans. Defaults on these loans can be catastrophic to your credit report for years to come.

Tax Season

admin — Fri, 01 May 2009 16:24:36 +0000

April 15th has come and gone. However, some of us still have our lovely extensions to carry the obligations forward for a few months. Taxes can become quite complicated for people as they gain more wealth, luck, and family. We all know that our new tax laws severely affect us small business owners that make over $250,000 a year. Let’s just say that a lot of successful small business owners are now saving every receipt possible to stay south of that mark.
Having a family or dependents is another way to ease your tax gains. Children give significant deductions as they should. It is no secret that it isn’t cheap or easy to raise children. The new stimulus package also allows recent homeowners to get significant tax credits in an effort to stimulate the housing market.
I feel as if the one part of taxes that most people get killed on or forget to claim is gambling winnings. Casino winnings taxes can be significant. In addition, if you choose to defer taxes at time of payout, be aware that government knows that you have won and will call for the taxes eventually. What I didn’t know is that International visitors can receive taxes back for winnings they accumulate while in the States.

The Credit is due.

admin — Fri, 01 May 2009 16:02:49 +0000

It seems as the economy is finally on the upswing. After all of the hoopla about Obama’s first 100 days in office and his progress, many like myself wonder when the stimulus bill will actually trickle down and start helping the middle class. Our taxpayer money has invested millions into banks to keep their liquidity up. These banks in return are supposed to be giving homeowners and businesses access to credit they deserve.
However, I think the banks have taken advantage of the bailout and have tightened their lending criteria compounding the original issue. It’s just another way the consumer is held accountable for a greedy industry. One point that I agree on with Obama is his fight to end senseless credit card rate hikes. Many companies, fearing new legislation to ban increases, have started notifying good customers that their limits have been slashed and their rates have been increased.
I guess being a small business owner that takes responsibility for his original terms and agreement won’t ever understand how corporations can hide behind their customer service and take advantage of lengthy terms that their lawyers so masterfully created for situation like this.

Raising Credit Card Rates

admin — Wed, 22 Apr 2009 16:59:54 +0000

I am a small business owner that started a company without any outside investment. I am going on my third year in which I believe I have survived the hardest times, including the current economic recession. There have been times in which I have had outstanding customer balances in the thousands. However, it is my responsibility as a business owner to pay my bills and manage the money coming in and going out. This leads me to the use of credit cards and their recent practices.

I recently transferred a balance to a card of a major bank that I have done business with for years. They gave me an offer of a zero interest credit card for 6 months on the balance and actually increase my limit on the card the following week to $29 thousand. I was pissed when I received a letter in the mail today saying they were going to adjust my rate to 24% or I could reject and close the card. I called rejected, and told them that they were losing a good customer that had never missed a payment or failed to pay off a balance.

These companies are in a mad dash to jack up your rates before June when impending legislation will disallow the common scam practice. These companies gave money away like candy and are now punishing consumers for their bad choices. It is unfair. Make sure that you compare credit cards and make sure that you follow up on the letter.

Young and Lucky

admin — Thu, 09 Apr 2009 13:22:54 +0000

If you are a young person like myself that has the capability to buy a house, do it. Home prices have fallen close to 30% nationally since last year. You can steal a house worth $400,000 in 2008 for $250,000 today. I really do feel bad for the people that are losing their homes, but we must also make somebody else benefit from these banks risky investments. I grew up in a middle class neighborhood where home prices have been above $300,000 for the last 8 years. Two homes are currently on the market for the low to mid threes. I was pissed when I saw that one of my neighbors homes was stolen at auction for $130,000. Rates are at historical lows. Foreclosures are definitely risky, but do your research and you will benefit. Even if you can’t manage interesting ways to come up with the down payment, offer homeowners on the brink of foreclosure rental agreements with options to buy. Set up a legal binding agreement where you will rent the home for two years with 66% of the rent going towards a down payment. Think about it, they can’t sell and you pay the mortgage saving them foreclosure embarrassment. You get an agreement with sales price based on current market value and a way to leverage your rent towards a down payment.

Binghamton Bulletts

admin — Tue, 07 Apr 2009 13:06:10 +0000

I once worked in Binghamton for IBM. So when I heard the recent news that a mass murder had taken place it kind of took me off guard. Apparently, a gunman barricaded one door and ambushed another at an immigration services center. The gunman proceded to kill 13 people before ending his own life. The authorities have named the gunman as Jiverly Wong, who is believed to be in his early 40’s. Wong apparently had ties to the civic association, but no motive has been determined. I am currently wondering if this was an attack on immigrants trying to become U.S. citizens or something else.

Call it a rally

admin — Sun, 05 Apr 2009 13:14:36 +0000

The stock market has posted positive gains for the 4th consecutive week. The stocks rallied Friday despite a negative March jobs report. Ever since the market hit a 12 year low on March 9th, all three major indexes have risen more than 20%.
The job market doesn’t scare investors as much as company failures because it has always been a lagging factor during recessions. Basically, even though employers cut 650,000 jobs, many investors feel that the governments infusion of money may start having an effect on the economy in 2009. The G-20 summitt of countries last week pledged over $1 Trillion for the International Monetary Fund. I feel as if the bottom of the recession is here and that the economy will not start fully recovering until 2010. I think the country has seen part of the mortgage problem; however, I feel as if the consumer credit card problem will come more into play during the latter part of 2009.