My finance tips

Internet Guide To Saving Money For Recessionistas

Over the last few years the Internet has exploded with opportunities for consumers to spend and save money. In these difficult economic times its important to take advantage of these money saving opportunities. Remember cheap is the new chic. Every savvy recessionista needs to keep a few tools at hand to find the best deals. Just remember in your zeal to take advantage of online sales make sure to keep a level head and only purchase what you need.

Coupon Sites

In this day and age you should never have to pay full price anything. There are coupons for beverages household good food personal care entertainment healthcare and pet care. Many websites like Coupons.com offer printable coupons for you to use in the store or some offer exclusive online deals. A good rule of thumb when youre searching for coupons is to go to a search engine and type in the name of the product with “coupons” or “promotional code” afterwards. The search engine will pull up all the results related to that keyword phrase. Before printing out the coupon or using it online check the date to make sure the discounts are still valid. Sometimes search engines cache old coupon pages and you might be too late to get that deal. Also if youre buying online make sure that the cost of shipping doesnt outweigh the savings you receive with the coupon.

Deal Forums

Search for hot deals on forums such as www.FatWallet.com. Fellow recessionistas search the web for the best deals and post them on the forum. You can find information on free stuff online auctions contests and sweepstakes coupons and hot deals. If youre too busy to monitor FastWallet.com it offers Topic Alerts. This feature will notify you via email whenever a post is made related to the item that youre looking for. All you have to do is go to the Topic Alerts section fill in your information and then deal alerts will be sent to you saving you time and money.

Shopping Search Engines

Coupon sites and deal forums are great if you know exactly what youre look for. But what if you dont? Recessionistas dont despair! You just need to visit a comparison shopping search engine. Google Yahoo and MSN all have shopping sections to their search engine. Just go to the shopping engine enter in the item youre looking for and the search engine will pull up results. Google Product Search shows pictures and product reviews next to the items to make selection easier. Once you find what youre looking for you can click on “Compare Prices” to find the best deal.

Daily Deal Sites

Some online websites like Amazon.com offers daily deals within their website. These sale items are usually discounted at extremely low prices offering recessionistas a great place to find quality products. There are even websites like Woot.com that only sell one item a day and if you dont buy it that day then you miss the sale. Of course the prices must be low to attract a large score of buyers. However both of these types of sites are dangerous on the budget because its encouraging impulse buying. You might visit the deal of the day site and think “Wow thats a great price. I dont need it but its a great price!” Then you end up buying something that you dont need and thats a bad idea. If youre going to take advantage of these types of sites make sure to look at the deals with a level head and dont buy anything that you dont needno matter how good the deal is.

Online Auctions

Online auction websites like eBay.com are garage sales on steroids! Recessionistas come together to buy and sell products from the convenience of their homes. All you have to do is enter what product youre looking for and the website will pull up the latest auctions. You tell the site how much you want to pay and if youre willing to pay the highest for the product you win. However be very careful when using online auction sites. Sometimes bidding will start low and then as it gets closer to the auctions closing time youll find yourself in a bidding war over the item you want. Make sure you understand how much youre willing to pay and dont allow your ego to talk you into paying too much for what you want. Also watch out for outrageous shipping and handling charges. Sometimes auctioneers will discount the price but make up for the discount by charging a higher than normal shipping and handling charge.

Online Classifieds

Remember the days when you would flip through the newspaper looking at the classifieds? Well with the advent of Craigslist and other online classified sites theres no need to pick up a newspaper. Modern recessionistas just look at online classifieds. Go to Craigslist. Select the city in which you live type in the item youre looking for and read over the classifieds. Buyer Beware: out of all the places to find great deals this one offers the least amount of anonymity. There isnt any buyers protection. Oftentimes you have to contact the person directly to pick up the item and complete the sale.

Lastly consider joining an online community like Twitter and following a few recessionistas that are tracking hot deals. These coupon clipping deal watching ladies tweet the latest sales from their Twitter accounts. Or if Twitter isnt for you consider collecting a few RSS feeds from the shopping savvy. Just go to Google Blog Search and type in “hot deals”. It will pull up the most recent blog posts and you can choose which ones to subscribe to. Good luck and happy deal hunting.

For more information on how to shop smart and save money read Shopping and Saving at Consolidated Credit’s website.

About the writer:  By Kathryn Katz Consolidated Credit Counseling Services

Consolidated Credit Counseling Services is a 15year old company that assists families throughout the United States in ending financial hardships through financial education credit counseling and debt consolidation. Consolidated Credit offers the FreedomQuest Debt Management Program to help consumers get out of debt.

Kathryn Katz has over 10 years web copywriting experience and a lifetime love of helping others. She was formally the Director of Financial Education at a nonprofit credit counseling agency. At an early age she learned the importance of volunteerism by joining the Girl Scouts and actively participating in her youth group. As an adult she has helped raised funds for Susan G. Komen Rescue Rehab Home Toys for Tots and Women in Distress.

Loan Modification – What Is A Loan Modification?

A Loan Modification is a modification to the terms of an existing loan made by a lender in response to a borrower’s longterm inability to repay the loan. Loan modifications typically involve a reduction in the principal balance interest rate or an extension of the terms. In some cases a different type of loan or any combination of the three. A lender might not be open to providing a loan modification to a borrower unless they are behind on their mortgage payments at least 4 months. By this time their credit is ruined and the lender or mortgage servicer can profit further by negotiating a forbearance agreement and collecting more fees.

A Loan Modification should be done by a Law Office and will stop foreclosure.

A Law office can use advanced legal techniques to achieve the most aggressive results for the client. An Attorney understands State and Federal laws as well as lending regulations. In some cases of RESPA or TILA violations an Attorney can threaten a recession of the loan or litigation causing the lender to return ALL fees and interest paid through the loan. A Loan Modification company simply submits a package similar to a loan submission to have the lender review and decision. This DOES NOT achieve the best result for the borrower. In matter of fact it could make matters worse due to the fact one has exposed themselves to the lender without properly evaluating the entire situation. If the lender or broker has misrepresented the terms or worse yet committed bank fraud a Law Office can and should use the necessary means to bring the lender or broker to their knees to modify the loan and forgive some of the principal. In most cases a Real Estate Law Office can stop foreclosure with out bankruptcy simply by calling the lender or mortgage loan servicing company and getting a 30 day extension for a loan modification.

Why should you use a Real Estate Attorney and not an Attorney based or Attorney backed Loan Modification Company?

A Law Office that specializes in real estate law can negotiate a loan modification agreement to stop foreclosure and get their client affordable mortgage payments. A loan modification with an attorney is different from forbearance and in most cases a forbearance agreement will require a borrower to bring in 100 of the arrearages. This is usually impossible for home owners already struggling with finances. A forbearance agreement provides shortterm relief for borrowers who have temporary financial problems while a loan modification agreement is a longterm solution for borrowers that normally will reduce the interest rate change the terms of the mortgage and may reduce principal balance a combination of all three.

Example of a loan modification for an “option ARM” successfully completed from the Feldman Law Center in California.

We have completed the modification on this borrower the following are the terms of the loan modification:

New UPB 842442.17

Term 40/30

Pamp;I 3192.29

Escrow 771.05

PITI 3963.34

Due date 11/01/2008 1st modified payment due in 2 months

Maturity date 04/01/2036

Interest Rate 3.149 for the 1st two years 4.149 for the 3rd year and 5.149 on the 4th year and for the remainder term of the loan

Contribution 310.00

This client had a 7.50 interest rate and the loan recast to a 6700.00 monthly payment. As you can see this is a drastic interest rate reduction with no negative amortization.

You may contact the FELDMAN LAW CENTER and request to see the clients’ actual document or listen to the recorded testimonial!

Loan modification is a term very unfamiliar to homeowners but not for very long. What most people are coming to realize is that losing their home to foreclosure is becoming a real possibility. Home foreclosure in America today is at an all time high and is affecting many homeowners that never believed they could lose their home to foreclosure. Homeowners are feeling the crunch of higher interest rates fuel costs and a slowing economy. A loan modification may be the only way for a homeowner to save their home. Negotiating with the bank for a modification of your home loan can be an overwhelming process for many homeowners. Major lenders such as Countrywide bank Indy Mac bank Wells Fargo Bank of America WAMU New Century Quicken Loans Aurora Aegis EMC Mortgage CITI Mortgage Chase Bank are overwhelmed with defaults and foreclosures. That is why retaining the services of an experienced law firm or real estate attorney rather than a loan modification company is of extreme importance. I have been around the mortgage industry for years and now find myself in the mix of the mortgage mess with an Option ARM loan that is due to explode in September.

The Mortgage Meltdown has hurt our entire economy as many families are facing foreclosure due to toxic mortgages and declining property values. California Florida Nevada Arizona homeowners are the main sufferers as well as many of the Midwestern and east coast states. New mortgage laws to protect home owners are now in affect. If you want to find mortgage law information got to www.feldmanlawcenter.com or for foreclosure laws in your state you can simply Google your city and state foreclosure laws or find them on the Feldman Law Center web site. There is a wealth of information about loan modifications and other real estate services. In some cases the home owner may chose not o keep their home. In these instances an attorney can offer a deed in lieu of foreclosure and get a settlement offer from the lender. The truth is these people can hire an Attorney to represent them with their lender and save their home and their hard earned credit. Lenders are facing record losses and may not be willing to help home owners unless they are forced to listen. A letter of representation from a licensed real estate attorney seems to get their attention fast. You can find Mr. Steven Feldman at http://feldmanlawcenter.com/home.html

About the writer:  Andy Hygate writes for Bad Credit Loans a leading UK provider of finance products for people with bad credit

An Uncertain Economy Your Retirement Money

Many of you are in the red zone right before retirement or you’ve already retired. No doubt your number one fear is running out of money in retirement. You’re part of a very large and growing demographic force: 35 million over age 65 50 million drawing Social Security and 78 million baby boomers now turning 62. This means the future demand for everything used by the “retirement set” will increase and “retirement prices” will rise dramatically. Many of you may have accumulated a retirement nest egg in a pension account will draw a company pension and/or have other savings and investments earmarked for retirement. Where should you keep your retirement money?

If you’re keeping up with economic and financial developments here’s what you’re seeing: subprime credit meltdown that has destroyed housing and is now spilling over into automobile debt and credit cards; highly volatile stock and bond markets; a weak dollar fueling higher prices for oil and other goods; more unemployment and rising inflation; retail sales consumer confidence and new jobs creation in sharp decline; drastic interest rate cuts by the Federal Reserve to avoid a recession; a money giveaway stimulus package from Washington to prop up the lagging economy; widespread talk of recession and stagflation. These all add up to troubled economic times which should prompt you to review where you have your retirement money.

You’re told the stock market is the best long term but “long term” has a different meaning in retirement. Didn’t the dot.com stock market meltdown in 20002002 send many retirees back to work and prevent others from retiring? Aren’t the current inflationadjusted stock market indexes below their previous peaks? Regardless the loud voices of Wall Street and investment companies are advising you to buy now at bargain prices. Are the markets headed higher or is their advice selfserving? Who can forecast the economy or the stock market?

If the stock market craters as it did in 200002 and 197374 and you lose some of your retirement money how will you replace it? Since there will be no second chance I encourage you to think carefully before you commit your money. If you’ve been told that you’ll do just fine over the longer run generally meaning ten years make sure you can wait this long for a market rebound. Also remember that a rebound is not certain!

What about fixed rate places like government bonds bank CDs and money market accounts? These are rocksolid safe unless your greatest fear is outliving your money. Since current fixed rates are lower than inflation you’ll be losing purchasing power with these choices. The potential loss of purchasing power will only add to the risk of outliving your money. What about real estate collectibles and nonmarket investments? These are not only risky but generally illiquid. Before committing your retirement money ask yourself this question: “How will I handle the worse case outcome?”

There is one savings place that offers an “opportunity” to make an abovemarket rate of return without the risk of loss if held to term. It is guaranteed by some of the world’s oldest strongest and largest financial companies. The rate of return is determined by stock/bond market indexes with owners sharing in the upside potential but avoiding downside losses. The worse case outcome is a guaranteed positive rate of return. The earned interest is income tax deferred until actually withdrawn and there is no mandatory age when the money must be used. Additionally it can be turned into a guaranteed lifetime income that can be started stopped and stored. What’s more it offers penaltyfree partial liquidity for emergencies and bypasses probate if the owner names a beneficiary. It can be opened for a small or a large amount and sometimes more money can be added later. There is no law which limits the amount of money that can be placed in it. It is truly a safe place to keep retirement money.

It is maligned by Wall Street and bankers because it competes with their products. The financial press doesn’t like it either primarily because they are uninformed misinformed or just plain biased. I’m talking about fixed indexlinked annuities that are offered by insurance companies: the same companies that insure your home live health business and other valuable assets. The worse case outcome is a positive albeit small rate of return if held to maturity but there is an opportunity to do much better. Fixed indexlinked annuities are not for everyone but you need to consider them as one of your safe options for retirement money. Where are you keeping your retirement money in today’s uncertain and troubled economic climate? If in risky places now is a great time to review your options.

Shelby J. Smith Ph.D.
March 2008

Learn about safe money places check out the Retirement Pros website http://www.theretirementpros.com/ I’m also doing free monthly video seminars online sign up at: http://www.theretirementpros.com/TeleSeminarMRM.php

About the writer:  Dr. Smith has an earned Doctorate in Economics from Iowa State University of Science and Technology along with a Bachelors and Masters degree in Economics from the University of Wyoming. He started his professional career as a college professor and held professorships at several Midwestern and Southern universities. He entered the corporate arena as the Chief Economist of a Regional Federal Home Loan Bank moved then into the banking business where he served as Economists Chief Financial Officer President CEO and Chairman of several institutions. He started a financial marketing company that catered to financial institutions and their clients by providing investment products. For the past twenty years Dr. Smith has been providing consultation and services to conservative investors and savers positioning their assets for retirement. In the process Dr. Smith has managed a broker dealer and held licenses that allowed him to offer securities and insurance products to the general public. He is currently the ask the expert at the Retirement Pros a senior officer at BHC Marketing Ltd. and writes newsletters and other retirement articles for the retirementminded.