Reports say the unemployment rate has hit a sixteen-year high. Record numbers of people are jobless and more are being laid off every day. Earlier this month, President Bush signed a new law, The Unemployment Extension Act of 2008, which would extend the length of time for unemployment benefits.
Typically, workers are able to receive 26 weeks of unemployment. The new law could extend that time by up to 13 weeks in states with the highest unemployment rates. All other states would extend the benefit period by seven weeks. Nine states currently have unemployment rates that exceed the national average: Michigan, Rhode Island, California, South Carolina, Nevada, Illinois, Ohio, Oregon, and Florida.
Who qualifies for unemployment?
Unemployment requirements are different from one state to the next. In general, you cannot have lost your job through something you’ve done (e.g. quit, show up late, etc.) and you must be actively looking for a new job. You may be able to receive unemployment benefits in some states if you were fired or quit because of medical reasons. Your income and time on the job are also considered in determining whether you’ll receive unemployment assistance and how much you need.
How much will you receive?
Again, it varies by state, but generally you receive half of your last paycheck for 26 weeks up to a maximum of the state’s average income. In Ohio, for example, the maximum weekly benefit amount is $493. In Nevada, it’s $365.
Perhaps a cash advance loan could also help at this time. For more information, please click here.
How to file?
Contact your state’s Unemployment Insurance agency after you’ve become unemployed. You may be able to file your claim over the phone or using the internet. You’ll typically receive your first benefit check between two and three weeks after you’ve filed your claim. You can locate contact information for your state’s Unemployment Insurance agency via the U.S. Department of Labor’s website.
Tuesday, November 25, 2008
Should You Be Worried About a Bank Failure?
The FDIC reports a total of 21 bank failures in 2008, the highest number of failures in a single year since it began reporting closings in 2000. With the increased number of bank closings, it’s only natural to wonder if your bank is next. But predicting a bank failure isn’t so easy. The FDIC, Federal Deposit Insurance Corporation, compiles a list of problem banks on a quarterly basis. However, this obscure list isn’t released to the public. The corporation doesn’t want to alarm consumers which could make things worse. Even so, only 13% of the banks on the FDIC’s list actually fail, according to CNNMoney.com. So, it’s possible that you don’t have much to worry about.
If you want to know how your bank is doing, you can check any of the private bank rating companies published on a list by the FDIC.
For tips on How to Survive the Credit Crisis, click here.
Don’t worry unnecessarily about your bank failing. Instead, you should make sure the deposits you’ve made are FDIC-insured. The FDIC recently increased the insured amount to $250,000 per depositor per bank. This is a temporary amount that lasts until December 31, 2009 when the insured amount will go back to $100,000. Checking accounts, savings accounts, NOW accounts, money market deposit accounts, and CDs (certificates of deposit) are all insured up to the $250,000. Certain retirement accounts are also covered.
These types of accounts are not covered: life insurance policies, annuities, stocks, bonds, mutual funds, or municipal securities.
You may be covered for more than $250,000 at a single bank if you have money deposited in different ownership categories: single accounts, certain retirement accounts, joint accounts, or revocable trust accounts. Visit FDIC.gov for more information on insurance levels and to find out if your bank is insured.
If you want to know how your bank is doing, you can check any of the private bank rating companies published on a list by the FDIC.
For tips on How to Survive the Credit Crisis, click here.
Don’t worry unnecessarily about your bank failing. Instead, you should make sure the deposits you’ve made are FDIC-insured. The FDIC recently increased the insured amount to $250,000 per depositor per bank. This is a temporary amount that lasts until December 31, 2009 when the insured amount will go back to $100,000. Checking accounts, savings accounts, NOW accounts, money market deposit accounts, and CDs (certificates of deposit) are all insured up to the $250,000. Certain retirement accounts are also covered.
These types of accounts are not covered: life insurance policies, annuities, stocks, bonds, mutual funds, or municipal securities.
You may be covered for more than $250,000 at a single bank if you have money deposited in different ownership categories: single accounts, certain retirement accounts, joint accounts, or revocable trust accounts. Visit FDIC.gov for more information on insurance levels and to find out if your bank is insured.
Some Struggling Homeowners Will Keep Homes for the Holidays
Freddie Mac and Fannie Mae, two of the nation’s largest mortgage finance companies, have announced they will be halting foreclosure actions for a combined 16,000 households during the holidays. They’ll be taking a break from foreclosure sales from November 26 until January 9.
The two companies will spend the holidays figuring out whether mortgage borrowers qualify for a newly announced loan modification program. The program would help Freddie and Fannie struggling homeowners who are at least three months late on their mortgage payments, have not filed for bankruptcy, and still occupy the home secured by the mortgage. The program only benefits Freddie and Fannie borrowers.
For more information on mortagages and foreclosures, click here.
According to Fannie Mae’s press release, the mortgages would be made affordable through a combination of efforts: reducing the interest rate, extending the loan, or deferring some principle payments. Qualifying borrowers would see their payments fall to 38% of their gross income or less. The program is scheduled to launch on December 15, 2008.
Fannie Mae and Freddie Mac borrowers who have foreclosures scheduled between November 26 and January 9 will be contacted by one of the companies’ foreclosure attorneys. If the foreclosure-scheduled homes are unoccupied, foreclosure will proceed.
The two companies will spend the holidays figuring out whether mortgage borrowers qualify for a newly announced loan modification program. The program would help Freddie and Fannie struggling homeowners who are at least three months late on their mortgage payments, have not filed for bankruptcy, and still occupy the home secured by the mortgage. The program only benefits Freddie and Fannie borrowers.
For more information on mortagages and foreclosures, click here.
According to Fannie Mae’s press release, the mortgages would be made affordable through a combination of efforts: reducing the interest rate, extending the loan, or deferring some principle payments. Qualifying borrowers would see their payments fall to 38% of their gross income or less. The program is scheduled to launch on December 15, 2008.
Fannie Mae and Freddie Mac borrowers who have foreclosures scheduled between November 26 and January 9 will be contacted by one of the companies’ foreclosure attorneys. If the foreclosure-scheduled homes are unoccupied, foreclosure will proceed.
How to Make – and Stick to – a Holiday Budget
Christmas comes once a year, and if you’re like many people, you’re still dealing with your Christmas bills well into next summer. Most people would be surprised to learn just how much they spent celebrating that one day. And many are, once they open the first credit card bill after the holidays. If you don’t want that to be you come January, take some time to make a holiday budget and do everything you can to stick to it.
Set Your Budget
Click here for a Budget Worksheet
Decide early how much you’re going to spend. If you’ve set up a holiday savings account, wonderful. If not, then you need to work with the income that you’ll be getting during the shopping season. Use your monthly budget to figure out what you’ll have left over after expenses. Then, use that to build your holiday budget by category: gifts, travel, food, decorations, clothes, and donations.
Prioritize Your Spending
Decide what’s really important. We tend to go overboard on spending for the holidays when just a little discretion would have kept us within budget and out of debt. Second-guess every purchase you make to be sure you can afford it.
Track As You Go
As you spend, make sure you adjust your budget so you always know what you have left. Set aside some cash or use a prepaid credit card for all your holiday spending. That way, you won’t mistakenly overspend or use up money that was allocated for your mortgage or electricity bill.
Resist Guilty Spending Temptations
Don’t feel obligated to do extra over the holidays. Do your best and remember, it’s the thought that counts. Even if you can’t do everything you’d like this year, you can start saving early next year so your next holidays will be even better.
Set Your Budget
Click here for a Budget Worksheet
Decide early how much you’re going to spend. If you’ve set up a holiday savings account, wonderful. If not, then you need to work with the income that you’ll be getting during the shopping season. Use your monthly budget to figure out what you’ll have left over after expenses. Then, use that to build your holiday budget by category: gifts, travel, food, decorations, clothes, and donations.
Prioritize Your Spending
Decide what’s really important. We tend to go overboard on spending for the holidays when just a little discretion would have kept us within budget and out of debt. Second-guess every purchase you make to be sure you can afford it.
Track As You Go
As you spend, make sure you adjust your budget so you always know what you have left. Set aside some cash or use a prepaid credit card for all your holiday spending. That way, you won’t mistakenly overspend or use up money that was allocated for your mortgage or electricity bill.
Resist Guilty Spending Temptations
Don’t feel obligated to do extra over the holidays. Do your best and remember, it’s the thought that counts. Even if you can’t do everything you’d like this year, you can start saving early next year so your next holidays will be even better.
Monday, November 24, 2008
Credit Crisis Could Bring Credit Repair Scams
The credit crisis has brought with it an increased number of companies claiming they can repair your credit. To someone stuck in a bad credit situation, these promises sound tempting, but when it comes to credit repair companies, things are never as they seem.
Credit repair organizations can’t work the magic they’d have you believe they can. Legally, they cannot do anything to help your credit that you can’t do yourself. The same credit laws prevent you from removing accurately reported information from your credit report hold true for credit repair companies. For example, if you really did file bankruptcy 3 years ago, that bankruptcy has to remain on your report for at least 4 more years, 7 years in some cases. If you didn’t file bankruptcy, then you can submit your own credit report dispute to have the entry removed for absolutely free.
Considering the Federal Trade Commission says they’ve never seen a legitimate credit repair company, it’s safe to assume all credit repair companies are a waste of time.
Credit repair companies have to follow the federal law called the Credit Repair Organizations Act. You should avoid any company that’s not following that law.
Any credit repair company you deal with has to give you a pamphlet titled “Consumer Credit File Rights Under State and Federal Law.” They’re also required to give you a copy of your contract before you’re asked to sign it. This contract has to spell out how much you have to pay, what services will be done, the date or time period for doing the services, and a statement letting you know you can cancel the contract within 3 days of signing. The company’s name and business address should be on the contract.
You don’t have to pay for any services before they’ve been done for you. If a credit repair company asks you to, look for another one.
No credit repair company should promise to remove accurate information from your credit report. Nor should they suggest you create a new identity.
A sure sign of a scam is an agency that asks you to sign away your rights under the Credit Repair Organizations Act. Credit repair companies aren’t allowed to ask you to do this and even if you do, the waiver isn’t legally binding.
If you’ve dealt with an unscrupulous credit repair agency, you can report the Federal Trade Commission (www.ftc.gov) and your state’s Attorney General.
Credit repair organizations can’t work the magic they’d have you believe they can. Legally, they cannot do anything to help your credit that you can’t do yourself. The same credit laws prevent you from removing accurately reported information from your credit report hold true for credit repair companies. For example, if you really did file bankruptcy 3 years ago, that bankruptcy has to remain on your report for at least 4 more years, 7 years in some cases. If you didn’t file bankruptcy, then you can submit your own credit report dispute to have the entry removed for absolutely free.
Considering the Federal Trade Commission says they’ve never seen a legitimate credit repair company, it’s safe to assume all credit repair companies are a waste of time.
Credit repair companies have to follow the federal law called the Credit Repair Organizations Act. You should avoid any company that’s not following that law.
Any credit repair company you deal with has to give you a pamphlet titled “Consumer Credit File Rights Under State and Federal Law.” They’re also required to give you a copy of your contract before you’re asked to sign it. This contract has to spell out how much you have to pay, what services will be done, the date or time period for doing the services, and a statement letting you know you can cancel the contract within 3 days of signing. The company’s name and business address should be on the contract.
You don’t have to pay for any services before they’ve been done for you. If a credit repair company asks you to, look for another one.
No credit repair company should promise to remove accurate information from your credit report. Nor should they suggest you create a new identity.
A sure sign of a scam is an agency that asks you to sign away your rights under the Credit Repair Organizations Act. Credit repair companies aren’t allowed to ask you to do this and even if you do, the waiver isn’t legally binding.
If you’ve dealt with an unscrupulous credit repair agency, you can report the Federal Trade Commission (www.ftc.gov) and your state’s Attorney General.
The Big Three Automakers Ask Uncle Sam for Help
The Big Three automakers – GM, Ford, and Chrystler – have warned that their ragged financial state could cause them to fail within the next year, if not within the next weeks. Their demise could lead to a collapse of the entire auto industry. If these three automakers fail, the U.S. economy could lose up to 2.5 million jobs, estimates Associated Press. So, the three have joined together to petition lawmakers for bailout of $25 billion.
Chief executives blamed credit problems and decreased SUV and truck purchases as the reason for their problem. Rep. Michelle Bachmann, in a statement to Congress, points out that foreign manufacturers operating in the U.S. – Toyota, Honda, and Nissan – have remained profitable despite the crisis. She suggests the companies instead restructure their debts under Chapter 11 bankruptcy. A bailout, she says, won’t fix the companies long-existing systemic issuers.
While they claimed the companies were struggling and on the brink of bankruptcy, the chief executives this week arrived at the Washington hearing held to discuss the bailout in multimillion dollar corporate jets. Hardly the choice of transportation for a near-death auto manufacturer. That decision has many skeptical about whether the companies actually need a bailout and whether they would spend it wisely.
Whether the bailout would actually help the auto industry is questionable. IndyStar reports deeper problems with the way the auto industry is structured. For example, high costs of pension and health-care benefits contribute to the companies’ high overheads. Left unsolved, these problems could lead to bankruptcy, bailout or not.
Lawmakers won’t vote on the bailout until the automakers return with a plan for how they’re going to spend the loan money. If approved, the bailout won’t come from the $700 rescue plan approved for banks earlier this year. Instead, the Bush administration recommends spending from a pool of funds that’s dedicated for more production of more fuel-efficient cars.
The government has already spent or promised to spend nearly $1.5 trillion on bailouts. Where will the line be drawn?
The Big Three have until December 2 to come up with their plan for spending the $25. Then, Congress would meet on December 8 to make a decision.
Chief executives blamed credit problems and decreased SUV and truck purchases as the reason for their problem. Rep. Michelle Bachmann, in a statement to Congress, points out that foreign manufacturers operating in the U.S. – Toyota, Honda, and Nissan – have remained profitable despite the crisis. She suggests the companies instead restructure their debts under Chapter 11 bankruptcy. A bailout, she says, won’t fix the companies long-existing systemic issuers.
While they claimed the companies were struggling and on the brink of bankruptcy, the chief executives this week arrived at the Washington hearing held to discuss the bailout in multimillion dollar corporate jets. Hardly the choice of transportation for a near-death auto manufacturer. That decision has many skeptical about whether the companies actually need a bailout and whether they would spend it wisely.
Whether the bailout would actually help the auto industry is questionable. IndyStar reports deeper problems with the way the auto industry is structured. For example, high costs of pension and health-care benefits contribute to the companies’ high overheads. Left unsolved, these problems could lead to bankruptcy, bailout or not.
Lawmakers won’t vote on the bailout until the automakers return with a plan for how they’re going to spend the loan money. If approved, the bailout won’t come from the $700 rescue plan approved for banks earlier this year. Instead, the Bush administration recommends spending from a pool of funds that’s dedicated for more production of more fuel-efficient cars.
The government has already spent or promised to spend nearly $1.5 trillion on bailouts. Where will the line be drawn?
The Big Three have until December 2 to come up with their plan for spending the $25. Then, Congress would meet on December 8 to make a decision.
Be on Guard for Holiday Credit Card Fraud
The holiday season is one of the heaviest credit card fraud seasons. Thieves prey on unsuspecting shoppers, lifting their credit card information, or even the cards themselves, when their owners least expect it. Credit card fraud can be difficult to detect and expensive to fight. Preventing fraud is the best approach to dealing with credit card fraud during the holidays.
Purse and Wallet Safety
Ladies, when you’re holiday shopping, wear a purse with short straps. One that sits directly under your arm is ideal to prevent purse snatching. If your purse hangs down near your waist or hips, it’s easier for someone to snatch it away from you or pickpocket you.
Guys, it’s unusual, but safer, to keep your wallet in your front pockets while you’re shopping. Keeping your wallet in your back pockets makes it easy for thieves to sneak your wallet away from you.
Keep Credit Cards to a Minimum
Shop with only one or two credit cards. The more credit cards you have, the harder it is to keep up with them and the easier it is for one or more of them to be stolen.
Use Credit Cards Over Debit and Check Cards
Click here for more credit card information
I recommend doing your holiday shopping using a credit card rather than a debit card or check card. If someone makes purchases on your stolen check card, the money immediately comes out of your account. It could take a few days for the money to be credited back to your account. You can dispute fraudulent credit card charges with your card issuer without having to be personally liable for the charges. Just make sure you pay off the credit card balance when you’re done shopping.
Protect Your Credit Card
Keep an eye on your credit card in stores. Don’t take it out until you’re ready to have it swiped. With digital cameras and camera phones, sneaky thieves could photograph your credit card and use the information to make purchases online. Always double check to be sure you get your credit card back after using it.
Check Your Statements for Theft
Check your billing statement frequently, especially if you can check it online. That will give you an early clue if your credit card has been compromised.
Report Lost or Stolen Cards Immediately
Reporting your stolen credit card before the thief has a chance to use it lets you off the hook for any fraudulent charges made. If you wait, you could be liable for up to $50 of the purchases.
Purse and Wallet Safety
Ladies, when you’re holiday shopping, wear a purse with short straps. One that sits directly under your arm is ideal to prevent purse snatching. If your purse hangs down near your waist or hips, it’s easier for someone to snatch it away from you or pickpocket you.
Guys, it’s unusual, but safer, to keep your wallet in your front pockets while you’re shopping. Keeping your wallet in your back pockets makes it easy for thieves to sneak your wallet away from you.
Keep Credit Cards to a Minimum
Shop with only one or two credit cards. The more credit cards you have, the harder it is to keep up with them and the easier it is for one or more of them to be stolen.
Use Credit Cards Over Debit and Check Cards
Click here for more credit card information
I recommend doing your holiday shopping using a credit card rather than a debit card or check card. If someone makes purchases on your stolen check card, the money immediately comes out of your account. It could take a few days for the money to be credited back to your account. You can dispute fraudulent credit card charges with your card issuer without having to be personally liable for the charges. Just make sure you pay off the credit card balance when you’re done shopping.
Protect Your Credit Card
Keep an eye on your credit card in stores. Don’t take it out until you’re ready to have it swiped. With digital cameras and camera phones, sneaky thieves could photograph your credit card and use the information to make purchases online. Always double check to be sure you get your credit card back after using it.
Check Your Statements for Theft
Check your billing statement frequently, especially if you can check it online. That will give you an early clue if your credit card has been compromised.
Report Lost or Stolen Cards Immediately
Reporting your stolen credit card before the thief has a chance to use it lets you off the hook for any fraudulent charges made. If you wait, you could be liable for up to $50 of the purchases.
Saturday, November 22, 2008
Watch Out for Credit Limit Cuts 11-22-2008 Money Now! USA
The credit crisis has many credit card issuers slashing their cardholders’ credit limits. Back in June 2008, both Washington Mutual and Wells Fargo cut credit limits by up to 10%. Recently, American Express customers have seen credit limits slashed by thousands of dollars. These credit limit cuts couldn’t have come at a worse time, with holiday spending ramping up.
Lower credit limits are dangerous for your credit score. You see, 30% of your credit score considers your credit utilization – your credit card balances compared to your credit limit. The closer your balance gets to your credit limit, the lower your credit score will be. You could be doing well at keeping your balances low until the credit card issuer comes along and drops your limit, making it look like you’ve maxed out your credit card when you really haven’t.
If you don’t know your credit limit has been decreased, you could mistakenly go over. Credit card issuers don’t stop you from exceeding your credit limit. They just charge you a fee when you do it. They’ll also increase your interest rate. Even worse, your other credit card issuers might do the same.
Before you swipe your credit card, make a quick call to customer service to check your credit limit and available credit. Your credit limit could be decreased at any time without your knowledge, even if you have a good credit score and a positive payment history. Credit card issuers aren’t being picky with credit limit cuts – everyone’s fair game.
Checking your balance before making a purchase helps make sure you don’t go over your credit limit and receive a hefty over-the-limit fee.
If your credit card issuer notifies you that your credit limit is being decreased, it’s best to pay down your credit card balance to keep your credit score from being hurt.
The credit crisis has many credit card issuers slashing their cardholders’ credit limits. Back in June 2008, both Washington Mutual and Wells Fargo cut credit limits by up to 10%. Recently, American Express customers have seen credit limits slashed by thousands of dollars. These credit limit cuts couldn’t have come at a worse time, with holiday spending ramping up.
Lower credit limits are dangerous for your credit score. You see, 30% of your credit score considers your credit utilization – your credit card balances compared to your credit limit. The closer your balance gets to your credit limit, the lower your credit score will be. You could be doing well at keeping your balances low until the credit card issuer comes along and drops your limit, making it look like you’ve maxed out your credit card when you really haven’t.
If you don’t know your credit limit has been decreased, you could mistakenly go over. Credit card issuers don’t stop you from exceeding your credit limit. They just charge you a fee when you do it. They’ll also increase your interest rate. Even worse, your other credit card issuers might do the same.
Before you swipe your credit card, make a quick call to customer service to check your credit limit and available credit. Your credit limit could be decreased at any time without your knowledge, even if you have a good credit score and a positive payment history. Credit card issuers aren’t being picky with credit limit cuts – everyone’s fair game.
Checking your balance before making a purchase helps make sure you don’t go over your credit limit and receive a hefty over-the-limit fee.
If your credit card issuer notifies you that your credit limit is being decreased, it’s best to pay down your credit card balance to keep your credit score from being hurt.
3 Ways to Keep a Low Interest Rate - Money Now! USA 11-17-2008
Your interest rate is important because it directly influences the cost of your credit card. When you carry a balance beyond the grace period, your card issuer applies a finance charge, which is essentially your interest rate multiplied by your balance. The higher your interest rate, the higher your finance charges will be.
Even if you start out with a low interest rate, it could increase. Sometimes interest rate increases are out of your control, like when the issuer raises your rate because of market conditions. Other times, it’s your actions that cause your interest rate to go up. Here are things you can do to keep a low interest rate.
Pay your credit card bill on time every month. All it takes is one late payment to have your credit card issuer enact the default rate on your credit card. Keep paying your credit card bill on time, even if it’s just the minimum payment. If your due date falls on a weekend or holiday, plan to have your payment arrive before the due date.
Keep your credit card balances low. Maxing out your credit card is another surefire way to get higher interest rate. Credit card issuers see high credit card balances as a risk. So, to compensate for your increased risk, they require you to pay higher interest on your balance. It’s a good idea to keep your balance below 30% of your credit limit at all times.
Don’t bounce your credit card payment. When you write the check for your credit card payment, make sure there’s enough money in your checking account to cover it. Not only that, should make sure other outstanding checks or debits aren’t going to deplete your account. Enrolling in your bank’s overdraft protection program can prevent bounced checks.
Make sure you’re managing your other credit cards, too. Many credit card issuers have a universal default clause that allows them to increase your interest rate even when you’re late on another credit card payment.
Your interest rate is important because it directly influences the cost of your credit card. When you carry a balance beyond the grace period, your card issuer applies a finance charge, which is essentially your interest rate multiplied by your balance. The higher your interest rate, the higher your finance charges will be.
Even if you start out with a low interest rate, it could increase. Sometimes interest rate increases are out of your control, like when the issuer raises your rate because of market conditions. Other times, it’s your actions that cause your interest rate to go up. Here are things you can do to keep a low interest rate.
Pay your credit card bill on time every month. All it takes is one late payment to have your credit card issuer enact the default rate on your credit card. Keep paying your credit card bill on time, even if it’s just the minimum payment. If your due date falls on a weekend or holiday, plan to have your payment arrive before the due date.
Keep your credit card balances low. Maxing out your credit card is another surefire way to get higher interest rate. Credit card issuers see high credit card balances as a risk. So, to compensate for your increased risk, they require you to pay higher interest on your balance. It’s a good idea to keep your balance below 30% of your credit limit at all times.
Don’t bounce your credit card payment. When you write the check for your credit card payment, make sure there’s enough money in your checking account to cover it. Not only that, should make sure other outstanding checks or debits aren’t going to deplete your account. Enrolling in your bank’s overdraft protection program can prevent bounced checks.
Make sure you’re managing your other credit cards, too. Many credit card issuers have a universal default clause that allows them to increase your interest rate even when you’re late on another credit card payment.
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