A Few Tips Will Be of Great Help to Steer through the Foreclosure Fog
A New Year always brings hope and many will be glad to bid adieu to 2008. But the foreclosure fog has not cleared and a few tips will be of great help to steer through it. Massive unemployment problems have aggravated the foreclosure crisis as the credit freeze shows no signs of thawing despite many measures taken by the government at all levels.
One of the first things the ordinary American learnt from the foreclosure mayhem was to save more by spending less and shopping in a smart way. The financial security net has slipped away and to survive ways and means have to be found.
Already this is showing. The year 2008 started with zero saving rate. However in November the personal rate of savings has gone up by 2.8% as per the findings of USA Department of Commerce Bureau of Economic Analysis. It is still a far cry from the rate of 7.5% during the 90’s. The point to note is that it is a move in the right direction and an indication that the consumers are beginning to manage their finances in a much better way.
In October there was a 1% decline in spending by consumers. In November the drop was by 0.6% – clearly showing that people are learning to control their spending habits. Diva Clarky is a credit counselor and expert in finances. She said, “In this new year people will be adopting a more frugal lifestyle. They understand now that bigger isn’t necessarily better. They are thinking that they don’t need a bazillion channels. Instead of having everything, they are re-examining what they really want and those things they truly value. People are realizing that they really don’t own their stuff; their stuff owns them. They want to make a change.”
To do so she tells them firstly to do some rethinking about their spending habits, review the bank statements of the past six months and continue to do so during 2009 so as not to leave the tracks. Creating a monthly budget is a must with carefully outlined goals. Cutbacks are essential to squeeze in necessities. Hence priorities must be chalked out. There are many simple ways of totally changing lifestyles – going for a cheaper cable package, turning down the thermostat and going without dining out. It is better to pay cash and not use the credit card. That habit has to be got over with. For making extra keep a sharp eye out for part time jobs.
A New Year always brings hope and many will be glad to bid adieu to 2008. But the foreclosure fog has not cleared and a few tips will be of great help to steer through it. Massive unemployment problems have aggravated the foreclosure crisis as the credit freeze shows no signs of thawing despite many measures taken by the government at all levels. One of the first things the ordinary American learnt from the foreclosure mayhem was to save more by spending less and shopping in a smart way. The financial security net has slipped away and to survive ways and means have to be found. Already this is showing. The year 2008 started with zero saving rate. However in November the personal rate of savings has gone up by 2.8% as per the findings of USA Department of Commerce Bureau of Economic Analysis. It is still a far cry from the rate of 7.5% during the 90’s. The point to note is that it is a move in the right direction and an indication that the consumers are beginning to manage their finances in a much better way. In October there was a 1% decline in spending by consumers. In November the drop was by 0.6% – clearly showing that people are learning to control their spending habits. Diva Clarky is a credit counselor and expert in finances. She said, “In this new year people will be adopting a more frugal lifestyle. They understand now that bigger isn’t necessarily better. They are thinking that they don’t need a bazillion channels. Instead of having everything, they are re-examining what they really want and those things they truly value. People are realizing that they really don’t own their stuff; their stuff owns them. They want to make a change.” To do so she tells them firstly to do some rethinking about their spending habits, review the bank statements of the past six months and continue to do so during 2009 so as not to leave the tracks. Creating a monthly budget is a must with carefully outlined goals. Cutbacks are essential to squeeze in necessities. Hence priorities must be chalked out. There are many simple ways of totally changing lifestyles – going for a cheaper cable package, turning down the thermostat and going without dining out. It is better to pay cash and not use the credit card. That habit has to be got over with. For making extra keep a sharp eye out for part time jobs.
