Archive for October, 2009

30
Oct

Homebuyer Housing Tax Credit Extension Good or Bad?

Posted by Sara M. Varese

There are concerns about whether Congress should extend the Housing Credit past November of 2009.  Some say that it will help create sales, stabilize the economy,  and provide more jobs while others say that it is poorly targeted, allowing 10-20% of purchasers to buy homes solely because of the tax credit, costing the government about $46,000 for each sale.  Those who oppose this extension say that it does not help reduce inventory because when buyers purchase a new home, they also put up their existing home for sale.

The proposal is to extend the credit for homes that close by June 30, 2010 and is worth $8,000 for first time buyers looking to live in the house for more than 5 years and $6,500 for those looking to upgrade from a house that they have lived in for more than 5 years.

Currently, this extension is being attached to an amendment to extend unemployment benefits and could pass by next week.

This news brief was brought to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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30
Oct

Save Money by Getting Creative

Posted by Sara M. Varese

Sometimes we just want to go out and get something brand new or different, for example, a new pair of shoes, a new computer, or even a new car.   More often than not buyer’s remorse kicks in and we realize that we could have done something differently other than spend a large amount of money on something that we did not need.  So what are some simple and creative ways that you can save money?

Repair what can be fixed

Most of the time repairs on qualities items can be an excellent alternative to discarding this item and buying it brand new.  For example, perhaps you have a nice pair of leather boots witha  broken heel that can be repaired by replacing the heel.  It’s ok if you don’t know how to do it yourself – shoe doctors are usually available at local shops to help you fix this minor problem. Just take your shoe in and he can tell you if you can fix it and what the cost will be. A heel replacement can usually cost less than $5.

Borrow

Are you in need of an item on a temporary basis such as a dress for a party or some tools to fix a door? Why not borrow these items from a neighbor, friend, or family member instead of going out and purchasing these items brand new?  Most women claim that they never wear their special occasions more than twice so if you have a friend or relative that is about your size, ask if you can borrow it and offer to bring it back dry-cleaned.  A dry cleaning on a nice dress usually will not cost more than $6.

Buy savings in bulk

Look around your place and take note of everyday essentials that can be purchased in bulk to save both time and money.  Some of these items can include toilet paper, bottled water, or even cellular phone plans that offer discounts with family and friend purchases.   Many companies offer significant savings for those who buy in bulk, so the next time you are making a purchase, see if they are offering any kind of bulk savings discount.

Trade

If possible, ask the person that has the product or service that you are looking for if they are in need of a product or service that you can provide.  For example, perhaps your friend is selling a guitar that you would like, ask them if you can mow their lawn or install new software on their computer, or something creative that you can think of.

The ideas and solutions are endless.

Brought to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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30
Oct

Some Easy and Smart Ways to Save on Groceries

Posted by Sara M. Varese

Groceries are a necessity and if you’re ever wondering how to save money on eating expenses then here’s an article that gives 11 great ways to save on the grocery bills.  The major points are to eat out less often, making a list of needed items and sticking to it, buying things that are on sale and of a generic brand and buy in bulk.

Click here to learn more

Brought to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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30
Oct

24 Hour PayDay Loan Website

Posted by Sara M. Varese

At Pay1Day.com, you can apply for a loan at any time of the day or night using our quick and easy loan application.  Within a couple of minutes, you can find out whether you have been approved.

Our secure payday applications are easy to fill out, fast to complete, and you can complete it at the comfort of your home, office, or anywhere with a computer and internet connection.

Our applications are faxless, meaning, it is done online without the hassle of printing out paper, hand writing or faxing anything back.  We make it very easy and convenient for you to get a payday loan quick and simple.

Apply at any time of the day on a weekday or weekend on our site – why wait? Click here to apply now!

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30
Oct

Consumer Financial Protection Agency (CFPA) Overview

Posted by Sara M. Varese

Growing debate over whether the Consumer Financial Protection Agency should be created over concerns whether the agency would hurt or help consumers and banks.  Below,this article gives an overview of what the CFPA will cover and it’s potential for good and bad.

The CFPA was created to protect consumers from predatory lending practices and would have power and oversight over many financial sectors including mortgages, consumer loans, payday loans, real estate, credit cards, debit cards, debt collection, investment and financial investment services.   With the ability to impose rules and regulations, the CPFA could impose huge fines on banks and lenders who break the rules.  Some of the specifics examples of what the CFPA could do are rewrite truth in lending contracts to make them more consumer friendly, regulate “affiliate” title, escrow, and financing businesses connected to realty firms.

Others argue that the CFPA may not have the full knowledge or understanding of the banking industry and could be more harm than help by adding extra bureaucracy and headache and impede creative options for consumers.   In addition,  the two parties have not been able to agree the exact responsibilities of the CFPA which is the main reason for debate.

This brief news posting was brought to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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29
Oct

Did $14 Billion Go to the Wrong Group?

Posted by Sara M. Varese

Many question whether the Obama Administration’s choice to distribute $14 Billion dollars to Social Security Recipients was the right group to contribute to during these tough economic times when other groups may be in more need.

No single group has been left out of the recession – recipients of social security benefits, teenagers, unemployed young adults or middle-aged, or the future taxpayers. Everyone is struggling, however, there has been debate over which group deserves the $14 Billion in government aid.

In addition to the bill, a no-cost-of-living increase in their Social Security Benefits has been approved, mainly to make up for the 5.8% increase this year.

A lot of this proposal has to do with politics – those over 65 vote in large packs and opposition is often difficult.

Others argue that there is a bigger problem than the social security checks, it has more to do with the increasing deficit – a deficit that some say can be reduced by “entitlement reform” (decreasing social security benefits). However, if the government cannot say no to the social security entitlement, which may decrease in value each year due to inflation, then there may be a problem in government spending.

In 1970, a bill was passed that promised Social Security entitlement could never decline and will go up with prices or stay constant if prices went down. On the flip side, there will be tax cuts both this year and the next for workers.

During these hard economic times, there is ongoing debate for the correct distribution of funds – who should they go to?

This financial news briefing was provided to you by Pay1Day.com, a company dedicated to providing immediate cash assistance to consumers.

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29
Oct

House Passes $5 Billion Bill for EPA

Posted by Sara M. Varese

The House gives Congress until December 18 to finish a $5 billion bill that includes 7 incomplete spending measures and it is now up to the Senate to approve. The general Republican view sees the spending measure as irresponsible while the House sees it as essential. The spending measure includes a generous 17% increased spending bill for the EPA (Environmental Protection Agency) for clean and safe water drinking projects, Emergency Wildlife Protection, Air Pollution Control, U.S. cultural heritage and resources preservation projects, as well as highway programs, and federal loan guarantees for large mortgages.

Republicans view the increased spending bill as irresponsible, especially with the current deficit. However, Norm Dicks, the Chief Author of the Bill in the House said that because former President Bush had cut back grants needed to fund these measures, the proposed bill would help Americans see great returns in natural resources.

This brief financial news posting was brought to you by Pay1Day.com, dedicated to providing fast cash assistance to consumers.

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29
Oct

Economy grew 3rd quarter of 2009 But Recovery Could Be Temporary

Posted by Sara M. Varese

For the first time in more than a year, the U.S. economy has experienced a 3.5% growth in the 3rd quarter of 2009 due mainly to government aid, ranging from tax credits to homebuyers and rebates for auto purchases. However, because economic recoveries are fueled by consumer spending, this is expected to fade out as the government monetary aid dries up, discouraging consumer purchases.

What would make this growth seem less temporary and more stable are increased job creations or easier-to-get loans, not just the GDP growth which probably already hit its high point after the effects of the economic stimulus subsides.

U.S. exporting helped the local economy grow during the 3rd quarter because the cheap dollar has made it less expensive for foreign buyers to buy goods. U.S. exports increased about 21.4%, the most since 1996.

Employment still remains high at 9.8% and economists expect it to increase to 10.5 by the middle of next year.

So when will the recession end? This is determined by the National Bureau of Economic Research and usually doesn’t mark this point until well after the fact… so who knows, maybe things are getting better and maybe not.

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29
Oct

Mortgage Security for Future Home Sellers?

Posted by Sara M. Varese

Equity Protection, by Working Equity Inc. claims to protect a mortgage from future equity losses during a sale. The product
charges a one-time fee of 1-2.5% of your home’s value, determined by the company, depending on your market area and promises to reimburse the seller the difference between the average market value of the home during the sale and the actual sale amount. The conditions are that the seller cannot sell the home within the first two years.

The plus side is that if a seller decides to sell a home for 5% less than the starting contract value, Working Equity still promises to reimburse them the average value loss within that market. For example, if the average value loss in the area was 10%, then the seller would still receive the 10% minus the initial contract 1 – 2.5% contract fee.

Equity Protection is not currently backed by a reinsurance but the company states that it’s in the works.

If a person plans on selling their home after 2 years and there is a good chance that the property value will decrease over 10% within that time, then this may be a good investment. However, if it does not, then you may have lost out on thousands of dollars.

This brief news posting was provided to you by Pay1Day.com, a company specializing in immediate cash assistance to borrowers.

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28
Oct

Debit Card Overdraft Fees a Big Money Maker for Banks

Posted by Sara M. Varese
Debit cards have been long thought of as a convenient and responsible way of spending, however, as consumers overspend on their bank accounts, banks are charging high overdraft fees, turning it into a significant source of income for banks – expecting to bring in $27 billion in revenue this year.
Consumers can incur an over draft fee for each instance of an overdraft. For example, a consumer can go over as little as $0.50 and incur a $35 overdraft fee – however, if they decide to make another transaction at $5 that can incur another $35 fee, making it a $75 fee for a total transaction of $5.50. And because consumers use debit cards far more than credit cards, banks make far more in overdraft fees than in credit card late fees.

Most consumers would not agree to overdraft service if they had known the terms and conditions of overdrafting, however, the problem is that they usually do not know. Banks usually do not disclose this and neither do they have to. In 2005, the Federal Reserve ruled that overdraft charges must be covered by the Truth in Lending Act – a law designed to protect consumers in credit transactions by disclosing all fees and costs of the lending arrangement. On the contrary, the Federal Reserve has observed “marketing practices that appear to encourage consumers to overdraw their accounts” by some banks.

So what does the banking industry have to say about all this? They say that overdraft service is done as a favor for their customers, saving embarrassment from situations such as a card decline during dinner and that everyone should know what they have in their bank accounts. How about being able to opt out of overdraft service? Many banks do not give that option and neither do they have to disclose the service. What about notifying the customer at the register that they do not have enough funds? The banking industry explains that the technology is not in place to do so and would take a lot of investment by retailers to replace the current system.

According to Michael Moebs, an adviser of banks and credit unions, 45% banks are so dependent on overdraft fees as a source of income that they make more in overdraft fees than in regular income, resulting in them going out of business if they couldn’t charge these fees. And currently, the banking industry can’t come up with another source of income that could quickly replace that of overdraft fees.

This posting was brought to you by Pay1Day.com, a web-based company specializing in providing consumers immediate cash assistance and advises consumers to spend and use credit wisely.
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