News

Initial unemployment claims decline yet again, says DOL

Friday, 05 March 2010 22:22

Unemployment claims decline again, according to the latest U.S. Department of Labor report Initial unemployment claims continued to decline as February came to a close, providing hope to jobless workers in the midst of debt consolidation who are looking for a sign the struggling housing market may slowly be righting itself.

According to the U.S. Department of Labor's latest Employment Insurance Weekly Claims Report released on Thursday, initial unemployment claims stood at 469,000 for the week ending February 27, 29,000 fewer than there were one week earlier. The 4-week moving average of initial claims also dipped slightly to 470,750, a decline of 3,500.

Using the most recent data available, the survey also found that the advance seasonally adjusted insured unemployment rate stood at 3.5 percent for the week ending February 20, a decrease of 0.1 percentage point from the prior week's revised rate.

Because of that, the survey also found that the number of jobless workers receiving unemployment during same the week stood at 4.5 million, a decrease of 134,000 from the previous week's revised figure.

Additionally, the survey found that during the week ending February 20, only seven states saw an increase in their initial claims, with New Jersey leading the way with 4,879 new claims that were attributed to a backlog caused by weather-related office closings and a statewide furlough day.

Conversely, 12 states saw a decrease in claims of more than 1,000, with California leading the way with 12,000 fewer declines due to decreases layoffs in the service industry.
 

Pennsylvania residents could see savings with proposed tax cut

Wednesday, 03 March 2010 23:47

Residents in Pennsylvania may be able to benefit from decreased sales taxes Consumers looking to consolidate debt who live in Pennsylvania may benefit from tax cuts being proposed by Governor Edward Rendell to close an upcoming budget deficit.

The proposed reductions would lower the state sales tax rate from 6 to 4 percent in all areas except Allegheny County, which would see its rate lowered to 4.7 percent. The sales tax in Philadelphia, which currently sits at 8 percent, would be lowered to 5.3 percent as well.

Rendell rationalized the declines as a means to lower costs for consumers who are consolidating debt and looking to buy a new vehicle. The lower rates would result in nearly $500 in taxes that could be saved by consumers.

"My proposal lowers our sales tax rate by a third, increases the fairness of our business and sales tax systems and helps our state avoid the financial crisis that we know is only 18 months away," Governor Rendell said. "We will eliminate special interest exemptions on items except necessities like food, clothing and medications, and increase fairness because every item not subject to the sales tax makes the tax on everything else far too high."

Revenue collected from sales generated by the lower taxes would be used to cover the estimated $2.3 billion budget deficit the state expects to have in 2011 once Rendell leaves office.

 

Americans doing a better job at paying their credit card bills, says BillShrink

Tuesday, 02 March 2010 22:11

Consumers are paying off their debts more than they were one year earlier Americans are improving their methods of consolidating debt in the new decade and paying down the amounts they owe at a higher level than in the past, according to a new survey from BillShrink.

After asking for insight into the personal finances of more than 150,000 people who were lookingfor advice on how to manage their credit cards in February, 59 percent responded that they still managed to pay off their credit card balance in full every month.

In comparison, the same survey taken one year earlier during February 2009 found that only 46 percent of respondents said they were finding ways to pay off their credit cards in full on a monthly basis.
"The recession of 2009 was a wake-up call for many Americans who were spending beyond their means," said Peter Pham, CEO of BillShrink. "Now we're seeing people spend wisely and monitor their expenses carefully so that they can begin building a rainy day fund."

Improved management of consumer debt is only one of many financial signs that the economy is slowly on its way out of the economic doldrums seen during the past two years. On Monday, TransUnion reported that the number of auto loan payments that were 60 or more days past due had remained stable during the third and fourth quarters of 2009 at 0.81 percent.

The figure also showed the year-over-year delinquency rate at the national level had decreased by 5.81 percent during the fourth quarter.
   

Freddie Mac: Mortgage rates increase to end February

Monday, 01 March 2010 23:24

Mortgage rates increased at the end of February Homeowners saddled with bad credit mortgages who are looking to refinance as a means to consolidate debt finished up a disappointing week of rate increases with more rate hikes, according to the latest Primary Mortgage MarketSurvey by Freddie Mac.

The survey, which was released last week, found that only 1-year fixed-rate mortgages saw their average rate decrease during the week ending February 25 as it fell by 0.08 percentage points to 4.15 percent. The continued decline dropped the average rate even further away from the 4.81 percent rate it had averaged one year earlier.

After remaining under the 5 percent threshold for the last three weeks, the average rate for 30-year fixed-rate mortgages increased by 0.12 percentage points to hit 5.05 percent for the week. The increase only put the rate slightly below the 5.07 percent average rate documented by Freddie Mac at the same time last year.

The average rate for 15-year FRMs also increased over the course of the week, tacking on 0.07 percentage points to hit 4.4 percent for the week. One year earlier the average rate had averaged 4.68 percent.

"Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports," explained Frank Nothaft, Freddie Mac's vice president and chief economist. "For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board."
 

Homeowners may want to think twice about a short sale due to possible legal action

Monday, 22 February 2010 23:38

If you abandon a mortgaeg payment or conduct a short sale, lenders may respond with a lawsuit For homeowners falling behind on mortgage payments and in need of debt consolidation, a short sale of the home at a price lower than what they still owe on it may seem like the only viable option.

However, before going through with a short sale, one should consider the potential consequences and take appropriate actions to prevent them from becoming a reality.

According to Frank Alexander, a member of the board of directors of the Consumer Credit Counseling Service of Greater Atlanta and a law professor at Emory University, homeowners who engage in short sales can often leave themselves open to a lawsuit by their mortgage company looking to recoup the remaining amount owed on the house.
"A borrower facing a foreclosure should assume that a post-foreclosure lawsuit is possible," said Alexander. "In addition, no homeowner should ever participate in a short sale without receiving a signed agreement clarifying that all outstanding debt has been forgiven. The same is true for all deed-in-lieu of foreclosure resolutions."

Homeowners can also leave themselves open for similar lawsuits if they simply decide to walk away from their mortgages and let the payments default. Alexander added that he felt homeowners should not risk leaving a home behind unless they are told they will not be on the hook for any of the remaining costs.

   

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