Invest

WalletPop:

Filed under: Budgets, Saving, Career

This seems to be the week for corporations to announce job cuts. Today it’s AT&T announcing that 3,600 U.S. jobs will be lost. Merrill Lynch announced 3,000 cuts yesterday. Washington Mutual is slicing 3,000. AMD is cutting 18,600 worldwide. And there are many companies with smaller numbers announced recently.

These job cuts are the reason why consumers need to have their financial houses in order even better than ever before. Gone are the days in which you’d find an employer and stay there for 30 loyal years. Business has changed, and while the transition is difficult, I’ll suggest it’s for the better in the long run. While workers can’t count on the same job security and stability that they used to, there are many, many more opportunities available to them in this global economy.

But the key to being successful in securing your financial future is by planning for the worst case scenario. I don’t want to live my life planning for the worst, but it’s something that we must at least keep in mind regularly. The first key to surviving changing economic times is having money in savings.

Some your savings should be easily accessible, in some sort of bank or investment account. The remainder of your money can be invested in more long-term options like real-estate. The thing to keep in mind with the longer term investments is that it may take a while to get cash in hand from them if you need it,…

WalletPop:

Filed under: Debt

Finance experts will tell you that it’s important to keep a close eye on your credit record, for a number of reasons. First of all, a good credit history is the key that opens many doors for you. Not only does it mean you’ll have a better chance of buying a house and getting a good rate on a loan, it also has other implications.

Your credit history determines whether you’re eligible for a credit card, what your interest rate will be, and whether you qualify for any special promotions. Some employers will do a credit check before hiring you, so that’s another place a good credit record comes in handy.

Insurance companies check your credit and factor that in when determining your rates. Better credit means better insurance rates. It’s also important to keep an eye on your credit record to make sure no one has stolen your identity and that no credit card company has made a mistake in reporting your activity to the credit reporting agencies.

You can keep up with your credit for free! The first and easiest way to do this is through the free annual credit report program required by law. Each of the three credit reporting agencies must give you one copy of your credit report for free each year if you as for it. All you have to do is visit annualcreditreport.com to start the process. I recommend that you space out your requests throughout the year to make the…

WalletPop:

Filed under: College, Debt

There was a time when you prepared for college, “signed up” for student loans, and were virtually assured that the funds would be there for you. The idea of having to pay back big loans wasn’t appealing, but you knew your education was worth it. The checks came, you went to the financial aid office to get them, and all was well.

But it’s not quite so easy anymore. There’s news that Sallie Mae, the nation’s largest provider of student loans, may stop making new loans, at least temporarily. The company says the loans are no longer profitable, so it can’t afford to do them anymore.

Last week, a news report brought to light a new issue: Student loan checks that bounce. The Boston Globe reported on a student who deposited a $16,000 student loan check, started using the funds, and then was notified that the check bounced. The check bounced because The Education Resources Institute Inc., a nonprofit agency that guarantees student loans, filed bankruptcy. The student will still get his funds after some paperwork is sorted out, but it has likely been a scary process for him.

More banks are likely to stop issuing new student loans as the business climate for the loans has changed and banks don’t want to be involved with unprofitable loans. What does that mean for students? If they can’t get the loans they once counted on, they may have to work more in addition to going to school, and they may…

WalletPop:

Filed under: Real Estate

Some real estate and mortgage experts say that the mortgage industry hasn’t hit bottom yet, because here’s what’s up next: Consumers with prime mortgages bailing out on their financial obligations. If these consumers with good credit and the ability to pay their mortgages don’t make good on their loans, there could be a whole new wave of financial problems in our economy.

California is probably in the worst shape of any state. Real estate prices surged there in recent years, but then the values of homes also fell very quickly. The California real estate market was hit hard as subprime borrowers defaulted. But there is a belief that prime borrowers will soon decide to stop paying their mortgages as they see their real estate values dropping.

This makes no sense to me, because in my world, people pay their debts regardless of whether it’s a “good deal” for them or not. Simply put, these homeowners purchased properties at prices they agreed to. They signed papers agreeing to pay back the bank for the money loaned to purchase the house. If the house has now lost value, it’s not the bank’s fault, and it doesn’t do away with the fact that the consumer promised to pay!Consumers who decide to be dishonest and ditch out on their mortgages will be happy to know that there are even companies that will help you make the most out of your planned foreclosure. They’ll advise you on how long you can still live…