Wednesday, January 28, 2009

NEW YORK City fears the return of 1970s fiscal crisis

NEW YORK city and many other cities of US are worrying about the economic condition of the country.It remind us of the Great Depression of 1930s.It also remembers us of the 1970s fiscal crisis which almost pushed it into homeless crowded people,which resulted in increase of crime rates and bankruptcy.many people fled from the NEW YORK city for food and shelter to a safer place.It almost took 20 years to come back to its normal situation.

Coming back to current financial crisis reports from sources says that,Mayor Bloomberg is seeking a third term promise that although the whole city is experiencing is a huge financial crisis , he will not allow the city to remember the darkness of those days.

But there are fear and worry among the citizens of us .There is a sign of growing stress among the people and why not if we look at last year there were 444 bank robberies compared to those of 283 in 2007 and also rise in homelessness.this are all sign of alarming financial crisis.

According to Budget plan by David Paterson NEW YORK State Governor ,the city will cost $1.6 billion which will result thousands of police officers,firefighters,teachers, to lay of.And also the Mayor has has already stated that he will cut $ 3.6 billion from next year budget $ 60's largest taxpayer Wall Street financial industry has lost more then $ 36 billion in the recent years.

Raising of funds for many states has become harder because of financial market crisis individual are loosing confidence in municipal bond.As the result of auction rate securities market collapse last which resulted in the slash down of top ratings.NEW YORK city average sales bond slashed down to $300 million which was $1 billion at once.

So coming back to a conclusion and looking back to future there is something to worry about.But every one is aware of it and The government is taking major steps to overcome this situation and this is the time when we all unite to get out of the giant financial crisis and to improve the economic condition of our country.

Saturday, January 17, 2009

Continiuation of recession in 2009..Two us banks fails

The year of 2008 was a recession year but the effect of it still continues this year as on Friday the first causality was seen.Bank regulators closed two banks.1.National bank of commerce of Berkeley,Illinois 2.Bank of Clark county of Vancouver,Washington.The federal Deposit Insurance Corp said it is also heard that the other bank will be taking over their insured deposits. 25 banks were seized in 2008 by the officials .
Sources said that on Tuesday onwards the Bank of Clark county will reopen as a branch of Umpqua Bank and the National Bank will continue to use existing branches until National's deposit records are fully integrated by Republic Bank.however customer at both the banks can access their money as the service will remain available by ATM,teller machine,check and online services.Both the bank failure will coast a lot to FDIC Deposit Insurance fund .National Bank $97.1 million and Bank of Clark County $ $120 to $145.

Its an rising alarm for all the financial institutions of the country world wide.Hope it doesn't continues through t the year and things become same as before.

Friday, January 9, 2009

Debt reduction

Debt reduction is a term which is nowadays familiar to every one. Mostly with those people who are in debt.It is a process to reduce total amount of debt which is allowed by the creditors to his debtors.when the debtors goes for counseling of his/her debt.The counselors evaluates the financial situation of the debtor like rate of charges ,penalties amount and comes to a final settlement to recover their money as soon as possible.

Why should i go for debt reduction ?

Debt reduction helps us to get rid of frequent calls by the creditors

It helps you to get out from the burden of debt and to lead a stress free life.

It helps to pay of your debt with a much lower interest rate and thus you can smoothly pay your debt off.

The amount of debt can be reduced up to 40% to 60% by a debt reduction and counseling program.

And in the process you will be able to save few bucks which you can invest it for some other things.

How can i reduce my debt?

There are various ways by which you can reduce your debt like Debt settlement.Debt consolidation.Repayment plan etc.

View this to find how debt reduction program helps us to save money.And how it works.

What are the types of debt reduction ?

There are two types of debt reduction plan
1.Debt snowball (lowest balance method )
2.Snowball method high interest.

What are the best way of debt reduction?
1.Understand your debt problem-.find them,judge them and try to solve them and don't repeat the mistake again.
2.Self control and discipline- is also one of the major factor which helps in debt reduction.make a budget of your daily expenses and then spend accordingly.cut your excess expenses.
3.Credit card usage-lessen your usage of credit card because the interest charged on the amount of expense made with the credit card becomes a burden sometime in the long run.Thus take care of your debt and live a debt free life.

Saturday, January 3, 2009

Online Pay day loan....a trap towards" Debt cycle."

The increasing demand for the pay day loan mostly among the young and the communities with low and moderate income is paving their way towards debt causing financial crisis and mental stress in their life.The urge for the short term loan is increasing day by day.According to (CFA) The consumer federation of America a tremendous growth is seen in the use of internet pay day loan in the recent years and they have warned to take extreme caution while using internet for borrowing pay day loan .The network of the payday loan companies are expanding day by day due to huge demand in the consumer credit people are ready to borrow money and they are ready to supply in the process the innocent consumers are converted into victims of debt.

There are lot of lenders in the market who are willing to give loan,they usually target young and poor people.we should be aware that we have to pay high rate of interest and also it has a risk factor,because when we are borrowing money or doing any transaction it involves electronic access to checking accounts and in the process we are exchanging some secret financial information through there is a lot of risk involved in it.

The (CFA) surveys says that the borrowers can have to pay (APRs) annual interest rate of 650% as because the borrower might have to pay a loan due amount of $30 per $100 on the next pay day which is a good amount,this is most affecting the poor people as they borrow money without being aware of the high interest rate and also they have to renew the loan for every two weeks before they pay off by their earnings and savings ,and it paves their way towards debt.

Try to avoid short term loan especially via internet as far as possible unless and until their is any urgency for borrowing money and even if you are borrowing money think whether you will be in the condition to pay the due loan amount with a huge rate of interest by the next payday.or you might be trapped into debt cycle.Be alert and enjoy a debt free life.