Do Online Debt Consolidation Agencies Really Work?

The most popular amongst all possible methods of reducing your monthly dues, is the use of Online debt consolidation through a agency. But it may be asked that does the online debt consolidation agencies really good enough for us? Of course it is, let me explain it for you then.

When you chooses the services of a popular online debt consolidation agency, you are naturally selecting a professional group who will give their total efforts together to consolidate your debts. These people will be working solely to meet the purpose of helping you to regain your strength financially. At your first meeting, a qualified consolidator will specially evaluate your financial situation. After that the person will recommend probable solutions which can be done to minimize your average monthly payments against your debt, and helps you to save more money.

These online debt consolidation agencies are specialists of consolidating personal debt for many people like ours & knows how to deal efficiently with credit card companies or other financial lenders.They will guide you to a better financial way so that your finances will improves along with fully erasing your late fees on your accounts against your debt.

Once your accounts have been fully consolidated, you will have to pay a single payment each month, instead of paying to several vendors. By this way it will easier for you to have one single budget for the month which covers all your payments. It will definitely help you to manage your money in a long run.

How to Eliminate Your Student Loan Debts

A student loan is kind of debt that will never go away until it is paid off in full plus interest.
Once you’ve graduated, it is a rule that students will have up to 6 month grace before their loan payments are due. This grace period is actually implemented so that you can have the enough time to settle how easily you want to repay your loan.

What you can do with the 6 months “Grace Period”?

The main thing you can do in the grace period is trying for a well paying job, high enough for paying off your student loan debt.

Another Way To Pay Off your Student Loan Debt?

If you are not getting any decent job, you may need to cut our daily expenses& have to save some money for paying off your student loan debt.

How Do I easily Eliminate My Student Debt?

If you wish to consolidate your student loan debt you can reduce monthly payments at least by 50%. If you want, you can easily spread out your payments for up to 20 years which is much effective of eliminating your student loan debt.

You have to be careful when opting for lenders to easily consolidate your student loan debt because most of them will be misguiding you & getting you in more problems. So make sure you chose the right consolidator for your student loan debt & use your brain to decide the right way. Carefully read the terms & conditions before you sign anything. Best of luck with your future and keep in mind that you only have 6 months till your repayments starts, so use that free time wisely.

Things about 401k plan

The 401K name has been taken from the Internal Revenue Code of 1978. The "Employee Benefits Security Administration" of the Department of Labor has administered The operation of the 401K.

The 401K plan contains many advantages. The first and important one is that it is possible for any employee to contribute his pre-tax money which will reduce the tax payable in each paycheck. In addition of that, the company's contribution & any increment of the fund will be free of tax until its withdrawn.

Check the video below for more information about 401k plan :

No Teletrack Payday Loans – the basics

What is Teletrack Payday Loans

No teletrack payday loan is just an easier and much quicker version of existing payday loan. The total application process for a normal loan is basically much complex. You have to go through some complex procedures, truly boring paperwork, and numerous numbers of documents to be submitted. It's because the banks and financial institutions have asked millions of your personal details from you as they have already granted your loan application. If you are lucky enough to qualify for the loan, surely you must be paying an exorbitant interest because your loan providers will be holding a teletrack records against you. Teletrack is basically a credit agency which gathers the credit information of sub-prime consumer, & most of the personal loans like payday loans are recorded by them.

No Teletrack Payday Loans: They're Different
It is the common thing for payday loan lenders that they will verify your employment value and then run the Teletrack report on you. But presently, there are large numbers of fast online pay day loan lenders who offer payday loan without fax, credit check and Teletrack with quick approvals. The only requirements to get this kind of loan is that you have to be 18 years or above, you should have a paying job, and most important; you must have a valid checking account. You need to have some caution while choosing your no teletrack payday loan lender. Always keep in your mind that different lenders will charge you different interest rates against your payday loan. Always chose the most affordable rate. While paying your payday loan you will find three repayment modes:

1] Repayment of your payday loan amount fully on the payment date.
2] Make your payment of the finance fee &
3] A part of the principle amount before the no telecheck loans payment date.
You can get personal payday loans around $15 per $100 dollars borrowed, but sometimes more or less, even $10 per $ 100 dollars borrowed.

Reverse mortgage:few thing to remember

Last week we had a short discussion about reverse mortgage loans & its qualifying criteria. Now we will be discussing some more things about it…read & enjoy.

a) What If I Want To Buy A New Home?

You might be thinking, what are the rules of reverse mortgage regarding buying a new home? In this case, you just have to use the reverse loan. Basically you will be able to use the appraised value of your own old house, or present one and to get freedom from paying the down payment.

That would be a very flexible plan, because maximum no. of senior citizens wants to alternate their old big houses into smaller ones, because they felt that practically there is no need of big houses for their living. Another reason might be that they want to shift into a cheaper area or just want to be located closer to their friends.

b) So When Do You Pay?

You might be thinking that what about the payment time for your reverse mortgage? As there are no monthly payments, all your expenses, capital and the due interests, which the bank owes you, will be totally paid back when you or the owner of the house will permanently moved away or dies. Then your house will be sold by the bank and the total chargeable cost will be deducted from the property sales value. The excess amount of money will be given to the owner’s family members.

If the selling price will not entirely covers the costs, the insurance will help then. Here the difference amount will be taken from the insurance coverage, that’s why your other assets will be free from paying your due costs.

c) Meet The Counselor.

It is better to go through all your quarries before taking a reverse mortgage loan. So you must go to meet the counselor. In this way, you can get the best benefits from your loan.

Hope you like my post …guys. If you have any suggestions, please contact me at my mail.

Reverse mortgage: few things to know about

What is a reverse mortgage?

If we have to put it simply, it is a good opportunity, especially for a senior person to get easy cash and to avoid his monthly payments for that. The reverse mortgage loan will be taken only against the equity of that person’s house, which he had paid through the years.

a) The Main Benefit Comes In the Form of the Cash Money

The main benefit a senior gets is instant cash every month. If he needs more money than his monthly income to fulfill of his day to day expenses, he can easily take a reverse mortgage loan against the equity of his home. The loan amount will be paid directly to him every month, as a credit line or as cash money what ever he chooses.

b) Almost Everybody Can Qualify.

According to the rule, if the borrower is a citizen of United States of America, aged about 62 or over and owner of your home, you will definitely qualify for reverse mortgage loan. The older you are, the more valuable your house is, and the more you can borrow against your equity of the house.

That’s for today. Folks…we will be discussing it further until next time.

Unsecured Loans For Unemployed: is it beneficial?

The most difficult phase in anyone's life will be not having a decent job. Its very hard to carry on with handful on money with uncertainty. The situation might be getting worse if a sudden financial need arises. Without having any proper source of income and any securities against the loan it is very difficult to carry out the unavoidable requirements. In such position, opting for unsecured loans for unemployed people could be much beneficial. This kind of loan offers proper financial support to unemployed people without any major security.

The main positive part of these loan facility is its complete simplicity of apply. Unsecured loans are totally hassling free by means of documentation, process of evaluation & faxing papers. Thus, this kind of loan is approved much quickly than the other loans.

The amount which can be availed ranges from £1,000 to £25,000. The repayment time frame for this loan is 1-10 years. This scheme carries much higher interest rates as it has short term feature & unsecured nature. As there is no need to worry about proper securities, people having problem with unemployment & other monetary problems can easily avail for this loan.

A loan for unemployed offers you to use sufficient amount for fulfilling a number of purposes like-

-Your debt consolidation

- Your urgent household bills

- Purchasing luxury goods by you

- Your home improvement & renovation

- Your traveling expenses etc.

Unsecured loans for unemployed people are the best solution for any jobless people for getting out of financial crisis effectively. This kind of loans doesn’t have any involvement regarding credit check. So, all bad credit score holders can freely apply for the loan and get financial help for their private needs.

More factors determining your auto insurance premium rates

In the last post we have discussed about factors determining auto insurance premium rates.Now we are about to discuss more factors in this regard.

How frequently you drive - If you drive more than 15,000 mile in a year , you might be given a little higher rate than other. Its a basic terms of a insurance company that if you drive more, you have to pay more also.

How good a driver you are -If you think that you are a vry good driver, then getting low premium rates is easy for you.The insurance company always verify your past Comprehensive Loss Underwriting Exchange (C.L.U.E.) Report which reveals to them all claims you have applied in the past five years. The insurance company will also verify your driving record from state's Department of Motor Vehicles to ensure their terms & conditions will be totally fits you.

What kind of car your drive -The insurance company always looks for what kind of car you are using.If it is a low quality car which gives you a medium speed , the insurer surely gives you low rates.But if you want the auto insurance for a high-speed classy car, it surely cost you more.

What sort of coverage you choose -If you chose to get higher coverage, it will come with higher insurance premium rates, Some times it depend upon the nature of the policy you opted for & the additional coverage you asked for.

Insurance companies also offer different types of waiver, many insurance providers will reduce the auto insurance premium if you are a non-smoker, if your average driving per year is low...etc. Make sure to ask about all discounts offered by the company.

What factors determines your auto insurance premium rates

When you are opting for an auto insurance policy, it is natural that you always look out for the best auto insurance rate possible. So, it is necessary that you should know all the process & aspects which is used by the insurer companies in various situations to calculate the rate of premium. Here we are about to discuss some factors which will be much considered while applying for an auto insurance.

Where you resides: Your present location; means your city, state, province may influence your auto insurance premium rates. Your auto insurance premium rates might differ as per federal laws of different states.

What your age, gender and marital status are: It is seen that for young & older drivers, auto insurance premium rates are much higher as statistically they are much accident prone. Insurance companies also sometimes consider gender and marital status as a factor for considering auto insurance premium rates. The rates for girls are much lower than boys and singles will get higher rates then married people.

Occupation: If you have a high income job for a long period, you might get low rates but that is not every where applicable, it varies from one auto insurance company to other .It is also seen that if you have a job which is related to frequent driving, you may have to bear high auto insurance premium rates.

Your credit rating: At present more & more auto insurance companies are considering personal credit score while calculating auto insurance premium rates .A person who has a good credit score will be offered a low auto insurance premium rates

that was some tips for your auto insurance policy.We will discuss with some more until next time.

Basics of a Payday loan

In the present economic complexities, one's monthly income may not be enough to meet his necessities. There are some other alternatives for arranging money like borrowing or taking advances from etc. these alternative ways might not work always as you may feel hesitation to borrow money from friends or relatives. Even there is a limitation getting an advance from your employers. In such situations, payday loans can be helpful for you as a great relief.

What is a Payday loan?

Basically payday loans are a type of paycheck advance or instant cash. It is a short-term loan that mainly targets to fulfill the emergency need for cash of the borrower. Those emergencies may be includes functions, festivals, accidents, health issues etc. the Main facility which payday loan provides is instant cash while perfectly keeping your privacy. You can get the amount needed in your account in a very short period of time. You just have to repay the loan amount in full (or a part) on your next payday.

Requirements of a payday loan:

Payday loans are mainly for small personal need or sudden emergencies. The main requirement to qualify for a payday loan is that you have to convince your lender about the financial condition. That means you must have a consistent job, which will be assuring your lender that you have the ability to repay your loan amount on due time.

Considerations needed while applying:

If you are applying for a payday loan, always carefully read the terms & conditions stated in the agreement provided by the lender. If you are not getting any clause, always ask the lender to simplify it for you. If you are still not satisfied with the terms & conditions, try some other source or just don’t go for it.

Tips you should know for an affordable health insurance for your child

In the previous post we had a discussion about two options which you can get for an affordable health insurance for your child. Now we will be discussing some more tips which might be helpful enough for you & your child.

Sometimes, it is seen that few families having special health needs like all periodical checkups, sport related physicals checkups, eye and dental care and any injuries are getting disqualified even though they are not covered in their present insurance policy.

It often happens when you do not fulfilling the total criteria to get your state insurance programs ; if it happens, don’t waste your time & try out for other income based coverage offered by other insurance companies who surely gives you affordable child health insurance according to your need. Carefully read all information & risk factors involved to your insurance policy to make sure that your love ones will get the full benefit & sufficient coverage. It is important that you also read SCHIP’s terms & conditions thoroughly as in most states there is a rule that if you qualify for the “Free State insurance program”, you can’t go for any more policy for your children.

Most schools now provide some healthcare insurance policies at a discounted offer at the beginning of every school year. The policies which they offer have some variations in the cover according to your health needs & it is only provided for the period of school yea. It includes 24 hour cover for 365 days. The cost of every course of the policy depends upon its cover terms but it is still much less expensive than other private policy providers as it is as much good & affordable as group health insurance.

How to get an affordable health insurance for your child

The main purpose of child health insurance is to ensure your children’s safety from different critical situation as well as their future prospects. So, it is quite challenging for every parents, as they have to keep in mind that their child must get the best policy as well as their own financial condition. But normally getting a proper & affordable health insurance for children might not be so tough if you know the right way & possibilities.

There are two main options for your child’s insurance:

1) Medicaid: It’s only available for the families whose monthly income is too low to bear any insurance policy.

2) SCHIP (State Children's Health Insurance Program): SCHIP is only for those families who were earning a decent income for every month & not fulfilling the criteria for qualifying Medicaid.

It is clearly advisable that if your income is low, then you must go for Medicaid insurance services. After getting your application it will be reviewed & verified by the officials to confirm your eligibility for Medicaid. This insurance program initially covers pregnant women and their babies along with children who are under 18.

SCHIP is the other way of getting insurance for those children who do not fulfilling the criteria for qualifying Medicaid. This insurance program is founded & amended by the federal law & it has its own criteria which differ from state to state. It will best for some one who opt for SCHIP is to contact with the Department of Insurance (DOI) of their respective state to get affordable child health insurance according to their needs.

More tips for avoiding bankruptcy

Hello readers! In the previous post we had a brief discussion about some tricks you can use to avoid being a bankrupt. In this post we will discuss some more helpful ways for you…hope you will like it.

1. Whenever you go out for shopping, do some researches regarding items & their prices which you willing to buy. It has 2 reasons, a) May be you can find another better option & can go with it. B) With some more research you can judge an item which you thought you needed but actually its not that much essential, by that calculation you may go for a practical purchase every time & save your money.

2. Whenever you go out for shopping, try not to bring your personal credit & debit cards along with you. Try to carry an amount of cash which is according to your monthly budget. By that way you will always control your budget & keeping on shopping smartly.

3. Always check your bank a/c statements periodically. Try to avail e-banking service by which you can verify your balance daily so that you don’t overdraw cash you don't need. If you can, try to transfer your personal a/c’s high balances to you other card which has a lower interest charges.

4. When you decides to borrow money from a lender, make sure you select the lender or financial service provider who offers you the best interest rates in the market. Other companies might give you some attractive spot offers, but remember it will only increase your debt in a long term basis.

Tips for avoiding bankruptcy

In the present age a large number of people all over world are suffering from bankruptcy. No one expects to be a bankrupt in any kind of circumstances but as a result of some habits they may have to bear this problem. So I am about to discuss with you some simple but effective tips to avoid being a bankrupt.

1. If possible, always try to pay your dues with cash. That does not mean that you can’t use credit card; but try to minimize your credit card usage when you can pay with cash.
2. Always make a budget for your monthly expenses, & try to stay within your budget. By calculating your budget you can understand how much can you spend in a single time frame & how much you can save for further use.
3. Don’t be obsessed with impulse buying i.e. always purchasing things which you don’t need immediately. Everybody likes to buy new gadgets or new clothing but always think before buying about your budget.
4. Try to be away from any kind of offers which implies the opportunity "pay later" or deal stating "financing without interest" .May be those schemes attracts you very mush but keep in mind that those are merely a plea & by availing those offers your debt will be delayed with causing you trouble.
These are some simple tricks to avoid bankruptcy; we will discuss some more tips very soon.

Why & how to use Mortgage Calculator while buying your dream home

Buying your dream home is very much important for you as it surely the biggest investment which you must do correctly. You have to calculate how much you can take as a loan amount, for this reason you have to do a lot of things all by yourself. Firstly – make a gross figure of your monthly expenditure & monthly income, by means of that amount you can calculate your monthly savings from where you will be paying your installments. You can do your rest of the calculation by using a mortgage calculator in a very easy manner. A Mortgage Calculator is a very essential tool for process regarding mortgage, it will help you to determine how much amount you have to pay against your lending per month. You just have to put in the required figures in it which is

a) Current interest rates which bank offers.

b) The total loan amount taken by you.

c) Total time span or the period you willing to take to pay off your dues.

Another important thing I would like to share regarding the loan taken by you. You should always try to pay your first down payment near about 20% of the purchase amount of the asset. The financial institutions or banks will naturally be more soften about their policies & interest rates with you as your gesture will create a good credit rating about you on their database

5 tips about student debt consolidation

Students & youngsters are the future of our country but at present it is seen that they are having much problem with their debts. Here we will discuss some things & useful tips which may be working about student debt consolidation:

1) Usually it is seen that students don’t have a god credit score in the beginning of their financial life. As they are not engaged in earning money professionally, sometimes it gets very hard for them to pay off their credits. If you are bearing a low -rated credit history then you should immediately opt for debt consolidation service. The financial companies may offer you low EMI or equated monthly installment in the long-term basis against your debt, but in fact if you make a calculation, you will find that at the end you are paying much more interest then you have expected. So, it will be the right time for you to find a consolidator.

2) Before accepting the service, you should always think & understand all the terms & conditions of debt consolidation. Always call up & consult with your representative to get the total explanation about consolidating your debt, make sure that you do not take any wrong turn in your financial future.

3) There are many financial companies who were capable for taking care of your debts for you. Most of them will charge you a certain fees for the service they are rendering. Always make some research & chose the perfect consolidator for your debts. Usually it is seen that big companies can be more reliable as they are having goodwill in the market, though they might charge you a little more than the others.

4) Always try to pay off your monthly installment on time or before due date. Consult with your lender & pay more than your monthly equated interest as it will gradually improve your creditability. If your credit score goes in a better position, it will surely help you to get low rates on consolidation.

5) If you are currently bearing private loans & federal loans together, please be sure that you consolidate both your loans separately; because federal loan program always comes with many attractive offers which can be more suitable to you & you must get the advantages.

The things explained above is to guide you in consolidation of your debt, by keeping those little things in mind you can efficiently manage your credit score & get out of debt.

Why & how to choose the pet insurance policy

Our pets are always a special part of our living & valuable member of our family. They are always capable to bring a smile to our face when we are getting sad. They can often be sick or ill just like any human being, or got involved in an accident unfortunately. It is our duty to serve those poor creatures with proper medical care which is required for them. It will be serious issue if we don’t have any earlier plans or savings for this financial commitment. So, it will be the right time when we should think & learn how to get an adequate pet insurance by paying small monthly premiums.
At first contact an insurance company or browse their website to get informed about their pet insurance policy & get quotes
There are some small but important factors we need to keep in mind while choosing pet insurance. Always choose the famous & bigger policy provider company rather than the newly formed & small ones because it will give us total reliability & faith due to its goodwill in the insurance market. Before going for the policy, we have to check different packages covering the same priority & quality including policy packages from the other providers; which ever is giving the additional benefits in the same amount of money, we should opting for that package only.
We can also customize the cost of pet insurance premium by moderating the amount. It is preferable that we should quote the premium amount slightly higher than the actual premium cost when our pet is younger & healthy, & get the premium cost reduced when our pet is growing older & become prone to sickness like any normal people.
After getting the policy, it’s our duty to giving our pet a regular check up in the medical center as it can help us to determine whether it is the right time for claiming the policy amount or not.

Some basics of household insurance

We all know household insurance provides us with financial risk-protection against all kinds of possible damage which may happen with us in any circumstances. It is nothing but a contract between the policy holder (i.e. common people) & insurance company where policy holder pays certain amount of money as premium and in return the insurance company gives assurance & guarantee for payment of any kind of financial losses that happens to the policy holder’s property in the contract period.

Generally, household insurance or home insurance is provided in two kinds, 1) insurance for exterior & 2) insurance for interior. The 1^st one covers the protection of the structure of our premises against all kind of natural disasters & possible accidents like flood, earthquake, cyclone etc. On the other hand insurance for interiors covers any kind of risk factors like fire, theft, burglary & natural events like rain, flood or any accidental damages etc.

If any person wants to file mortgage, it is mandatory for him to get an exterior insurance because without exterior or building insurance mortgage is unacceptable. On the other hand interior insurance is up to the owner’s choice, people have to look for that insurance policy or companies only which offer him better coverage & protection than the other service provider or policy.

So, at the end it can be said that there is no substitute for having a suitable & proper Insurance as it will help us to do our day-to-day work with peace of mind & without worries.

How to keep your cash safe?

In our day to day life money is the primary need for all of us; we need money to fulfill the need of food, clothing & shelter. Basically in common “money” means cash- or better to say liquid cash. We naturally keep our money in the safe custody of some financial institutions as a deposite.Those institution or better are called “banks” not only keeps our money safe , but also gives us interest against our deposits. But it’s quite shocking that this scenario has been changed from past few months.

According to the report of “Federal Deposit Insurance Corporation (USA)”, 72 banks have failed over past few months. Consumers are getting worried about those incidents & began to reduce their amount of deposit in their account.

“Federal Deposit Insurance Corporation”- in short FDIC had an announcement that if a consumer is holding an account with a bank, having being insured by FDIC, he will be totally in safe hands. FDIC is insuring the customers for up to $250,000 individually & it’s totally in the control of US government.

The officials of FDIC has also stated that if a consumer is having his account balance more than $250,000, he can distribute his total funds getting additional new accounts within the same bank under different titles. It will also be possible for them to create additional account(s) in the same name with the other banks for the purpose of spreading funds. It is also advised by the officials that consumers should consult with their respective banks about getting insured by FDIC & providing the service of a sweep account which automatically transfers their funds to their another account with different bank.

The discussed main function of FDIC is to protect the funds of common people in case of a bank fails. Whenever it will happen, FDIC will take all charges of the troubled bank & will make an arrangement for the sale of the respective bank to another financial institution. In case of delay of sale, FDIC will remain in charge until takeover by other bank. The main positive thing which consumers are getting is that they can use their funds within a couple of days.

Retail fall over gaming industry

There was an argument between many economists & reporters that video games industry was nearly recession-proof, probably for its long time value of entertainment & comparatively low expenditure. But now it is very hard to be sure about that.
In the month of July, the video game sale figures fell worldwide, continuing from the last four month’s of 2009. The video gaming industry posted a total sale of nearly around $848.9 million dollars, which was 29 % less from one year earlier figures of $1.1 billion. A report says total sell of $8.16 billion dollars till July was also reduced by 14 % from the same period of 2008.It was clearly seen that gaming titles like “East India Company”, “Bionic Commando”, “Europa Universalis Rome Gold”, & “Ice Age: Dawn of the Dinosaurs” were failed to get the game-lover’s attention.
In spite of this downfall, there are still some hope & possibilities to rising up the gaming industry in coming months. Some heavy-weight gaming titles are yet to be release in the next quarters. Among them Electronic Arts (EA) games releasing ‘Madden NFL 10’ in this month. It is expected by the EA games that ‘Madden NFL 10’ will surely help for boosting up the sales.

After the month of august more big releases are coming up like “Guitar Hero 5”, “The Beatles: Rock Band”, “Halo 3: ODST”, “Sims 3: world adventures, “Wolfenstein”, “Splinter Cell Conviction” , “Call of Duty: Modern Warfare 2”(all platforms) and last but not the least “Need for Speed: Nitro”(only for Nintendo's Wii & DS).

Microsoft was the only company which posted a better sale figure during this crisis, because it’s “Xbox 360” gaming platform gained the position of most popular console & made a 17 % growth than the same period of 2008. But it is also notable that Nintendo's Wii had achieve the highest sales among the top consoles- Microsoft’s Xbox 360(sold 202,900 pcs), Sony's PS3 (121,800 pcs), and the Nintendo's Wii (252,200 pcs) in July.

Are you still JOBLESS?

According to the report of U.S government, the job market got some improvement in the month of July. The probable cause revealed by the analysis is the 1st time fall of unemployment rate since a year or more.
The Labor Department of U.S stated about all over a loss of 247,000 jobs in the month of July, which is little more since August 2008 & much lower than the expected a loss of 325,000 forecast by the U.S economists. The job loss in the month of June was also revised lower later on, stands on to 443,000 job losses from previous figure 467,000.It was noticeable that the unemployment rate got a downfall to 9.4% from 9.5% in the end of 2nd quarter of 2009 which was also lower than expected rise to 9.6% & first decline since April,2008.
The main reason behind declining labor power of U.S.A might be the idle & discouraged person who considers themselves as retired people or those people who have decided to carry on their educational life rather than seeking for jobs.
CEO of Adecco Group North America, one of the world's biggest employment consultancy & recruiting firm, Mr. Tig Gilliam has added “You can't lose jobs and have the unemployment rate decline unless folks are opting out, that means unemployment is going to go back up again”.
The greater number of workers seeking full-time job but only having part-time jobs is falling downwards by approx 191,000, or by 2%. That gives us a proper idea that those labors, who had only part-time work or were given unpaid off days during the recession period are gaining back to proper full-time status.

Retailer's fall in July

Merchants & retail chain business owners are having their worst gross monthly sales in July of this year. This might be a prior signal that the second-largest business selling season of 2009, which started in July, will be economically getting much lower than everyone expected.

The experts & sales trackers used a useful gauge to measure a retailer's  business performance through their sales at stores. This gauge is named “Same-store sales” It was found that most of the nation’s topmost retail businee chains specially mall-based retail-sellers, retail business chains for teen clothing ,big departmental stores and even discounter retailers , suffered from fall down of “same-store sales” in the month of July.

According to Thomson Reuters, who tracks “same-store sales” per month for more than 30 retail chains, total business sales for the month of July in the retail group decreased by 5.1%, with comparison to a increase of 1.1% in July 2008 .July's downfall is marked as the 11th month of sales declines. Reports said that more than 50% of the retail chain has missed their estimated sales target for the 1^st month of 2^nd quarter.

The business sales figures of June 2009 was the second worst monthly same-store sales decline of the year after the January's performance of decrease by 5.7%.

Some figures of July sales:

* Discounter Target (TGT, Fortune 500)'s sales by 6.5% (expected 5.8%)

* Macy's (M, Fortune 500) sales downfall by 10.7% (expected 9.1%)

* J.C. Penney’s sales downfall by 12.3% (expected 13% to 16 %.)

* Gap Inc’s sales downfall by 8%

* Abercrombie & Fitch’s sales downfall by 28%

However, Kohl’s, one of the medium-priced  business retail departmental store chain, just slipped from the downfall, having 0.4% increase in July, while Nordstrom, one of the high-end retail chain got 6.9% downfall , better than expected 11.1% .

The most probable reason which hampers the prime business sales volume in July might be the hesitation of parents, waiting to make their all school-related shopping in August as they can save money when the tax-free shopping events will be in the market.

USA: Rise of the Foreclosure

USA is suffering highly from foreclosure in the major Cities of four prime states, Arizona, Florida, Nevada & California. 29 Places from those states captured 29 positions out of the top 30 highest foreclosure affected areas of USA. But it was noticed that some places, like the Central Valley cities in California, which was badly affected by foreclosure, had improved a lot.
But experts said that this may be only a relief before another blow of an upcoming foreclosure. It is well known that the former two reasons of foreclosure were sub prime mortgage meltdown & other economic crisis. But now it is suspected that there will be a third wave & that would be, according to Realtytec" the fallout from the option-ARM resets over the next several months."
The question is, will it be getting worse then before?
We will get the answer if we just checkout the report given below:
Many states & cities of USA where populations are larger than one million had immensely increasing rate of foreclosure during last six months of 2009. For example, Seattle had the highest increase in the rate of filings, received notices 1 in 107 homes. That is 72% increment in rate compared with the same period of time one year ago. In the second position, was Minneapolis, increased by 58.6% to 1 in 90 homes; Phoenix got 51.7% increased to 1 in 22.
Vegas, which is crowned as the king of foreclosure,1 in 13 homes having foreclosure filing during the first two quarters of 2009, is 56% more increased compared with first two quarters of 2008 & it was six times worse than the national average rate of 1 in 84 homes. Chicago has increased up 30% from 2008 to 39th place among the foreclosure affected cities.

Housing surge

Applications for building permits and initial construction of U.S. housing properties both surged in the month of June, 2009. According to the US government’s Commerce Department figures, it’s getting an adjusted annual rate of 582,000, which is 3.6% up from a revised 562,000 in May. Economists were expecting that housing construction will increase to a rate of 524,000 units per annum.
Since December 2004, Single-family housing construction was notably strong; it goes up 14.4% on a month-over-month basis. It was the biggest surge & considered the center of the housing market.
According to Mike Larson, real estate and interest rate analyst at Weiss Research, the downfall of housing market is gradually stabilizing. He added in a research report “The new home industry has done a good job of reducing supply, but the existing home market is still vastly oversupplied, and we continue to be inundated with an influx of distressed and foreclosed properties."
It is well known that applications which are submitted for building permits are an indicator of future construction activity. It was noticed that the number of those applications rose 8.7% to an amazingly adjusted annual rate of 563,000 in June, 2009. Since December 2008, it was more than the annual rate of 530,000 that experts had forecast & the highest number of applications till 2nd qtr of 2009.
June-2009 holds the second mark of the month when home market have increased after the rate( per annum) of new homes having ground fell to an all-time low of 454,000 units in April, 2009.
New housing construction activity was getting stronger in the Midwest, where the construction activities were up by 33.3% from the previous month. It was also increased in Northeast by 28.6% in June.
But the in the West and the South, declines in the number of new homes are getting down last month ,14.8% in the West and 1.4% in the South.

Increasing foreclosure: the affect of recession

During the first six months of 2009, it was a record that 1.53 million US properties & assets were in the process of foreclosure - default notices, auction sale notices and bank repossessions. This figure is 9% more than the last six months of 2008 and 15% more than 1st six months of 2008, according to the US market reviews.
According to the report, there were 1.91 million foreclosure filings which are considered as 1 single property out of every 84 U.S. properties in the first half of the year 2009. Financial institutions or banks repossessed almost 386,800 properties in last 6 months. In addition to that there was no improvement in housing recovery in June, the last month of the cycle which is a very bad sign for the economy.
In the month of June,2009 ;More than 336,000 homeowners filled foreclosure , which is over 33% from June,2008 and nearly more than 5% with May 2009.
The biggest reason which really affecting foreclosure statistics is the recession. People were losing jobs in different sectors & were unable to payoff their respective debts. As a result, the number of out-of-work borrowers or defaulters is increasing. The prices of the properties are still going downwards at a slower rate, which pushes more homeowners into uncertainty because drop down of home-prices means more homeowners owing to the bank much more than their home is worth. That discourages them fully from repaying their respective monthly loan payment because they realize that it will be a foolish financial decision to keep paying on an asset which is having decreasing money value. Reports says that homeowners are deliberately surrendered their mortgages once their asset value fall 15% below their mortgage balances.

Experts added that at least 25% of all mortgage defaults may be "strategic”, because borrowers have lost so much value of their respective assets that they walking away from their homes. It was found that the areas which mostly affected by foreclosure, home prices have fallen by 40% or more.
However, parts of the borrowers are negotiating with their lenders, constantly trying to soften the terms of their debt so they can payback their loans & stay in their homes. But that process has been slow and infuriating to many borrowers. As a result, foreclosure rate is massively increasing.
California was recorded foreclosure more than any other state with 391,611 filings, one for every 34 households. Nevada had the highest foreclosure rate with one for every 16 households. Arizona, one for every 30, and Florida, one for every 33. Georgia, at one for every 70 households, is sixth,Michigan recorded one for every 74 households,holds the seventh place. Illinois came in eighth with one for every 76; and Idaho, one for every 79, holds ninth position .Colorado, with one for every 80, secured the tenth position and Ohio, with one for every 86, was twelfth.

The "Credit Crunch"

In the winter of 2007, the "credit crunch" started , creating huge effect at that time in the housing markets & the value of mortgage-backed securities, which is controlled by maximum banks, began to tumble. Financial institutions or banks suffered a sudden loss that was beyond expectations, as a result financial institutions strictly controlled & tightened their credit-lending policies and offered more conservative credit opportunities to their consumers.

The crunch transformed into a "liquidity crisis"in September-2008. The banks were losing their liquid cash caused by the crunch worrying that other financial partners might not be able to help when the time comes to repay their internal debts. So, banks began to control their reserves, stopped or gradually reduces interbank lending, and the premium on short-term loans went much more higher than before.

The given video will be useful :

In the beginning of October, the Treasury Department of US government gave financial support to the banks. This efforts was aimed at getting over from the "Credit Crunch" & getting financial agencies or banks to support to each other again.

Experts say the programs have largely worked. Banks have started repaying their internal debts & interbank lending has also increased. It is assumed that the critical situation has passed. But the crunch is here to stay for awhile.

Why?If banks are healthier, then what is the reason for such delay?

Mostly, because the economy is still tumbling from the mass effect of "Credit Crunch". Unemployment level is increased by 10% than before , the value of household wealth & assets are decreasing, foreclosures still rising. Banks aren't quite ready to invest their liquid cash to the incoming customers without being totally assured that the money will be paid back with the interest in the confirmed period of time.

It is certain that whether liquidity is gradually getting back to normal, that doesn't mean that financial institutions or banks are healthy enough to lending money to the borrowers. If we have a close look , it can be noticed that losses , caused by the previous lendings & mortgage-backed securities, are still increasing. Markets are still tumbling by the affect and banks are still remaining in their internal debts.

Experts predicts that the credit crunch will come to an end in about a year. It can be said that low rates of assets & household wealth will probably spur inflation at some point, and financial institutions or banks will make more liquid cash to balance the total situation.