Pay your bills on time. A single skipped payment can knock 100 points off your FICO scores, the ones most used by lenders. Consider automatic payments and e-mail alerts to make sure bills don't slip through the cracks.
Pay down your debts. What's most important is keeping your credit card balances low relative to your credit limits. Try to use no more than 30% of your credit limits; 10% or less is even better.
Beware of opening or closing accounts. Either can hurt your scores.
Dispute any serious credit report errors. Dispute any accounts that aren't yours or negative information that should have been deleted. (Most negatives, such as late payments or charge-offs, should be dropped after seven years. Bankruptcies can stay on for up to 10 years; unpaid tax liens may be reported indefinitely.)
Showing posts with label weak economy. Show all posts
Showing posts with label weak economy. Show all posts
Monday, July 7, 2008
Saturday, July 5, 2008
Finding Employment and Keeping One's Job in a Weak Economy and How To Avoid Unemployment
Bankruptcy Filings, Foreclosures, Unemployment Soar
The numbers are in and they’re not looking good for the state of the American economy. First-quarter statistics on bankruptcy filings, foreclosure starts and unemployment figures suggest that the United States is continuing its slide toward a serious recession.
According to an article in the Los Angeles Times, 90,000 bankruptcy cases were filed in March. That figure apparently marks the highest number of bankruptcy filings since 2005, when new bankruptcy laws made filing bankruptcy more difficult than before. The stat also indicates a 30% jump from bankruptcy filings in March of 2007.
The Times, which gathers its data from Jupiter ESources, notes that bankruptcy filings aren’t the only things that have increased since a year ago. Foreclosures and unemployment, too, are creeping upward. And the states where the housing boom was biggest (including California, Nevada and Florida) are reportedly feeling the worst of the economic distress.
California’s bankruptcy rate has increased a walloping 42% since last year, sources indicate, and the state’s unemployment rate is 5.7%, the highest in the nation.
Nevada is evidently facing a 5.5% unemployment rate, still greater than the 5.1% national average. But even the national unemployment rate suggests troubling economic times: sources indicate that unemployment in the United States is higher than it’s been since September of 2005.
A recent Bloomberg report noted that foreclosures have increased 57% since 2007, and mentioned that the former boom states are (perhaps unsurprisingly) hardest hit. Nationally, one in every 538 homes is currently in foreclosure, according to sources.
Financial experts estimate that $460 billion worth of homes will go into foreclosure in 2008, which will mean even more homes on the already saturated market and a likely continuation of falling prices.
As if these figures weren’t dreary enough on their own, some economists are apparently predicting that this recession could last twice as long as a normal recession, plunging the country into economic turmoil for at least 20 months.
Reports also suggest that many homeowners have grown frustrated with falling home values and resetting mortgage payments, and many are finding themselves “underwater,” with “upside-down” loans, meaning that they owe more on their mortgage loan than their homes are currently worth.
This is leading to an increase in so-called “walkaways,” who opt to mail their keys back to their lenders and simply give up on their mortgages. While no reliable figures exist for the phenomenon, anecdotal reports suggest that it’s becoming more widespread.
The numbers are in and they’re not looking good for the state of the American economy. First-quarter statistics on bankruptcy filings, foreclosure starts and unemployment figures suggest that the United States is continuing its slide toward a serious recession.
According to an article in the Los Angeles Times, 90,000 bankruptcy cases were filed in March. That figure apparently marks the highest number of bankruptcy filings since 2005, when new bankruptcy laws made filing bankruptcy more difficult than before. The stat also indicates a 30% jump from bankruptcy filings in March of 2007.
The Times, which gathers its data from Jupiter ESources, notes that bankruptcy filings aren’t the only things that have increased since a year ago. Foreclosures and unemployment, too, are creeping upward. And the states where the housing boom was biggest (including California, Nevada and Florida) are reportedly feeling the worst of the economic distress.
California’s bankruptcy rate has increased a walloping 42% since last year, sources indicate, and the state’s unemployment rate is 5.7%, the highest in the nation.
Nevada is evidently facing a 5.5% unemployment rate, still greater than the 5.1% national average. But even the national unemployment rate suggests troubling economic times: sources indicate that unemployment in the United States is higher than it’s been since September of 2005.
A recent Bloomberg report noted that foreclosures have increased 57% since 2007, and mentioned that the former boom states are (perhaps unsurprisingly) hardest hit. Nationally, one in every 538 homes is currently in foreclosure, according to sources.
Financial experts estimate that $460 billion worth of homes will go into foreclosure in 2008, which will mean even more homes on the already saturated market and a likely continuation of falling prices.
As if these figures weren’t dreary enough on their own, some economists are apparently predicting that this recession could last twice as long as a normal recession, plunging the country into economic turmoil for at least 20 months.
Reports also suggest that many homeowners have grown frustrated with falling home values and resetting mortgage payments, and many are finding themselves “underwater,” with “upside-down” loans, meaning that they owe more on their mortgage loan than their homes are currently worth.
This is leading to an increase in so-called “walkaways,” who opt to mail their keys back to their lenders and simply give up on their mortgages. While no reliable figures exist for the phenomenon, anecdotal reports suggest that it’s becoming more widespread.
How To Make Money In a Down Market: Market Volatility, Stock Market Seesaw or YoYo
Market Volatility: How to Cope with the Stock Market Seesaw
Coping with Stock Market Volatility
Many investors are concerned with volatility in the stock market as this new year starts. They fear that their nest egg is going to be wiped out by the credit crunch, a troubled housing industry with suprime mortgage defaults and the potential for further difficulties for hedge funds, banks and financial service companies. There is no doubt that hedge fund trading adds to the market volatility.
Volatility and risk are two different things. It is worth making the difference between them. Volatility is characterized mostly by a security, commodity or market that rise and fall sharply within a short-term period. Now how about risk? It is the possibility of an investment losing value.
So if you are a mutual fund investor who is concerned about volatility in the stock market, here are a few things you can do to reduce the volatility of your portfolio.
1. Make sure there is a good line of communication between you and your financial adviser. Go ahead and meet with your financial adviser to re-examine your investment goals, risk tolerance and financial circumstances. Now that you are at the start of this new year, this is a good time to do it. Talk about any changes that may occur in your investments. If you have changed jobs or decided to take an early retirement, here is a good time to start talking about these topics. Ask yourself many other questions. Did you get married? Did you have a child or become a grandparent? Has there been a divorce? Is your son or daughter needing money for college? Does your investment mix still make sense or put you at ease or in sync with your goals?
If you are in a volatile market, you may want to re-examine your strategy, even though you might not want to make major moves. Have you considered buying more shares of your mutual funds when prices are down? Everything depends on your personal situation. Remember that you are in it for the long term. If nothing has changed, then it may be a good idea to change your financial plan. Many investors often feel a sense of panic when things are not going the way they expected them to. So they hurry to pull out. That is a major mistake. Patience is a virtue that needs to be practiced at this point. History shows that the market has recovered.
2. The other thing you should do is to diversify your nest eggs. The idea is to spread your risks by investing in a carefully selected mix of mutual funds that invest in stocks, bonds and money market instruments. It is good to have a mix of domestic, international and global funds. Keep in mind that in the past few years, international equity mutual funds have generally done fairly well or even better than U.S.-focused mutual funds. Discuss other risks such as currency fluctuations and different accounting standards.
3. Invest in volatile markets. The idea is that volatile markets do not have to be seen as something to be feared and stay away from. Investing at regular intervals helps you pick some good companies. You can buy more shares when the price is down. Buying good companies at lower prices through your mutual funds is the name of the game. Very few people will want to continue making investments when stock prices are declining and stock market news is negative.
4. During market volatility, make sure to invest for income. Count on the dividend when the stock price is going up or going down. Stocks that have a history of paying regular dividends have tended to fare well. The stock prices of the companies may be affected, but that does not mean these companies are faring poorly. Think about bonds and money market instruments which tend to produce a steady flow of interest payments. They can help cushion your portfolio during stock volatility. Now that you know how to manage your funds, take advantage of any combination of instruments that may help you make money.
http://microcreditcapital.com/financialmatters/marketwatch.html
http://microcreditcapital.com/financialmatters/marketwatch.html
http://microcreditcapital.com/financialmatters
Coping with Stock Market Volatility
Many investors are concerned with volatility in the stock market as this new year starts. They fear that their nest egg is going to be wiped out by the credit crunch, a troubled housing industry with suprime mortgage defaults and the potential for further difficulties for hedge funds, banks and financial service companies. There is no doubt that hedge fund trading adds to the market volatility.
Volatility and risk are two different things. It is worth making the difference between them. Volatility is characterized mostly by a security, commodity or market that rise and fall sharply within a short-term period. Now how about risk? It is the possibility of an investment losing value.
So if you are a mutual fund investor who is concerned about volatility in the stock market, here are a few things you can do to reduce the volatility of your portfolio.
1. Make sure there is a good line of communication between you and your financial adviser. Go ahead and meet with your financial adviser to re-examine your investment goals, risk tolerance and financial circumstances. Now that you are at the start of this new year, this is a good time to do it. Talk about any changes that may occur in your investments. If you have changed jobs or decided to take an early retirement, here is a good time to start talking about these topics. Ask yourself many other questions. Did you get married? Did you have a child or become a grandparent? Has there been a divorce? Is your son or daughter needing money for college? Does your investment mix still make sense or put you at ease or in sync with your goals?
If you are in a volatile market, you may want to re-examine your strategy, even though you might not want to make major moves. Have you considered buying more shares of your mutual funds when prices are down? Everything depends on your personal situation. Remember that you are in it for the long term. If nothing has changed, then it may be a good idea to change your financial plan. Many investors often feel a sense of panic when things are not going the way they expected them to. So they hurry to pull out. That is a major mistake. Patience is a virtue that needs to be practiced at this point. History shows that the market has recovered.
2. The other thing you should do is to diversify your nest eggs. The idea is to spread your risks by investing in a carefully selected mix of mutual funds that invest in stocks, bonds and money market instruments. It is good to have a mix of domestic, international and global funds. Keep in mind that in the past few years, international equity mutual funds have generally done fairly well or even better than U.S.-focused mutual funds. Discuss other risks such as currency fluctuations and different accounting standards.
3. Invest in volatile markets. The idea is that volatile markets do not have to be seen as something to be feared and stay away from. Investing at regular intervals helps you pick some good companies. You can buy more shares when the price is down. Buying good companies at lower prices through your mutual funds is the name of the game. Very few people will want to continue making investments when stock prices are declining and stock market news is negative.
4. During market volatility, make sure to invest for income. Count on the dividend when the stock price is going up or going down. Stocks that have a history of paying regular dividends have tended to fare well. The stock prices of the companies may be affected, but that does not mean these companies are faring poorly. Think about bonds and money market instruments which tend to produce a steady flow of interest payments. They can help cushion your portfolio during stock volatility. Now that you know how to manage your funds, take advantage of any combination of instruments that may help you make money.
http://microcreditcapital.com/financialmatters/marketwatch.html
http://microcreditcapital.com/financialmatters/marketwatch.html
http://microcreditcapital.com/financialmatters
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