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Mitt Romney says we should speed up forclosures

October 18, 2011 / Staff

The foreclosure crisis has been a huge drag on the economy since the economic collapse of 2008. Warren Buffett has explained that we won’t have an economic recovery until we have a housing recovery.

One of the controversies, however, involves bad practices by the banks, and whether consumers should get a break in the face of this misconduct.

Mitt Romney apparently doesn’t think so, as he is arguing in Las Vegas that foreclosures should speed up.

“Don’t try to stop the foreclosure process. Let it run its course and hit the bottom,” Romney said when asked by the Las Vegas Review-Journal what he would do to jump-start the floundering housing market. “Allow investors to buy homes, put renters in them, fix the homes up and let it turn around and come back up.”
The administration, Romney said, “has slow walked the foreclosure process … that has long existed and as a result we still have a foreclosure overhang.” Nevada Attorney General Catherine Cortez Masto sued Bank of America in August, accusing it of foreclosing on homes without proper authority. Nevada is beset by economic turmoil and foreclosures. Last year, one in nine Las Vegas homes received a foreclosure notice.

On pure economic terms he has a point, but he seems to ignore how millions of American were screwed over by the banks. Yes, many home buyers made mistakes, yet it’s clear that the banks were jamming through mortgages just to rack up fees.

It will be interesting to see how this plays out.

Personal Finance, Real Estate

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Bad investments plague many athletes

October 9, 2011 / Staff

We’ve been hearing these stories for years. Professional athletes make millions of dollars, and then they end up broke and/or bankrupt. These are cautionary tales even for the average investor.

Here’s an interesting article that details bad investments by athletes. One of the recurring themes involves investing in businesses. Investing in the business of another person is usually not the way to invest your money. Many businesses fail, and if that happens you lose all of your investment.

Also, if you’ve made a lot of money, you should be more interested in preserving what you’ve earned. Don’t get greedy on risky get rich ideas – you’re already rich!

Few people think about what they can lose when they make these kinds of investments. Read the article and you’ll get an idea of what types of investments you should avoid.

Budgeting, Investing, Personal Finance

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Top Deal Stealers for Black Friday

September 20, 2011 / Staff

Black Friday

Black Friday is a notorious shopping day that takes place one day after Thanksgiving. For decades, retail outlets have offered unbelievable prices and sales to get people into their stores in preparation for the holiday season. These deals consist of anything from 50 percent or more off on popular electronics to free items with a purchase of another. While these deals are enticing and do the trick in attracting people to the store openings, they are hectic as well.

Generally, the stores that put on these big Black Friday specials have only a limited amount of the particular merchandise they showcase as a “door-buster” sale. As a result, people are willing to wait in line for up to 12 hours before the store opens to get their chance at the low-priced items. Additionally, when the doors open, people enter a frantic frame of mind that can, at times, turn dangerous. Due to this fact, some people find all the hassle associated with Black Friday simply not worth it, regardless of how enticing the sales are.

Fortunately, the Internet has opened a whole new door to the world of shopping, particularly for Black Friday. Online shopping has been growing drastically over the past few years as more people become accustomed to using the Internet regularly. Auction sites such as eBay have led the way in online shopping by providing a safe means of transferring money and maintaining an easy to navigate user interface. Through these different elements, the Black Friday craze is becoming more prevalent online with each passing year.

People who would normally not want to put up with the difficulties associated with visiting a store on Black Friday can search for sales from the comfort of their own home. Some popular methods to use in finding Black Friday deals online include:

-Finding daily deals on eBay the entire week leading up to Black Friday.
-Logging on retail websites for popular stores early in the morning on Black Friday.
-Performing a simple search engine query for particular products during Black Friday.

In all, the world is changing with the widespread implementation of technology. This is especially prevalent when it comes to shopping and participating in Black Friday. While some people continue to visit stores and wait in line solely for the experience, most are opting to visit sites like eBay to find their favorite deals without putting up with the hassle. In some cases, online shoppers take advantage of the deals before the people waiting in line at the stores even get through the door.

Deals

5 Contemporary Budgeting Tools for Consumers

September 15, 2011 / Staff

Budget.

Budgeting can be tough, but it is a must when income slows down during an economic recession. Learning how to stick to a budget and live within one’s means can take some adjustment, but will ultimately pay off in the end, when one can feel more financially secure. Many individuals are simply getting by, living paycheck to paycheck, and when an unexpected expense arises, there is often no way to pay for it. Cutting costs and putting some money away each month can reduce this worry.

The first tip to setting up a budget that works is to sit down with the last month’s bills. Determine what the necessary expenses are, which typically include the following:

-Rent or mortgage
-Utilities
-Groceries
-Gasoline or other means of transportation
-Car loan payment or other debt
-Taxes
-Insurance

Necessary expenses are items that are required to live. Some items that aren’t as necessary include the following:

-Entertainment
-Travel
-Home improvements

After determining how much will go to each place, step two is to analyze where things could be trimmed. Dining out is always fun, but can get very expensive when done often. Cutting back on some of the less necessary expenses may be important.
Tip #3 is to use some of the helpful online tools for budgeting. Some websites can pull information from credit cards and bank accounts to determine exactly where money is going, and will categorize purchases to help people stick to their budgets. The sites will often send email reminders when a person has gone over the budgeted amount for that category.

The fourth step is tracking, which is a must in budgeting. Whether done manually or by a tracking website, people who are trying to stick to a budget must be held accountable. Going over the limits every month may seem fun at first, but when there is no money in savings to fix the broken furnace or pay for a medical bill, it will no longer be fun.

The fifth and final tip is to use a prepaid Reach Card, since this will limit spending and can be very helpful to those who are not used to sticking to a budget. Some choose to deposit only the budgeted amount onto the card, and since it is not a credit card, only those dollars can be spent or the card will decline.

Learning to budget and save is a great way to establish security and a comfortable lifestyle. Those who live within their means often can avoid huge amounts of debt and live a much less stressful life.

Frugality

Four Facts You Need to Know About Used Cars

September 14, 2011 / Staff

Used car.

Buying a used car can help you save a lot of money without sacrificing quality. To get the most out of your purchase, however, you will need to consider a few precautions that can help you differentiate a good deal from a bad buy.

Research the Make and Model

Some cars have reputations for dying at a young age. Others seem to keep going forever. Do some research to help you find a make and model that has a good reputation. That way, you can get the most for your money. You should also check the vehicle’s safety ratings. A cheap used car with poor safety ratings isn’t necessarily a good deal.

Get the Car’s History

Ask the seller to give you the car’s vehicle identification number (VIN). This number will help you research the car’s history. Services like CarFax and AutoCheck can provide detailed histories of many vehicles at a small price. In addition to getting information about accidents that the vehicle has been in, you can also learn whether any banks have liens on the car. If so, you should not purchase the vehicle.

Ask the Seller for Receipts and Invoices

Even reliable vehicles need servicing. Regular maintenance helps ensure that the car will have a long life. Ask the seller to give you receipts and invoices showing that the car has received regular maintenance. This can include receipts for oil changes, replacing the serpentine belt or repairing body damage. Receipts and invoices also help prove that the seller owns the car. You don’t want to unintentionally buy a stolen vehicle.

Compare Your Insurance Options

Insurance companies usually charge cheaper rates for older cars. That means you can continue to save money long after you have bought your car. There are, however, several types of auto insurance that you might need to consider before buying a used car. Do you need full or minimum coverage? Do you need any additional policy options that meet your driving needs?

Consider that some cars have higher insurance costs than others. If you want cheap insurance rates, then ask your policy provider to give you quotes for cars before you buy them. That way, you know what to expect when your first insurance bill arrives.
These four considerations should help you gather the facts you need to choose a reliable, affordable used car. What other facts have you found useful when purchasing used vehicles from dealerships or independent sellers?

Lifestyle