Edison’s Blog

America, Land of Milk & Honey, Land of Opportunity, where the streets are paved with gold. We have all heard these shots, and perhaps it serves us, but what is today a reality in their Twenty-First Century United States of America? The terms of elasticity, most Americans, even those who are at the bottom of the economic scale, chef, enjoy a standard of living that many people in poor regions of the world. But many families seem to struggle to stay afloat, say nothing about the future. What is now a reality? How did we here? How can we solve them?

Let’s look and some of the realities of today.

1) The bursting of the real estate bubble finally arrived. Sub mortgage meets crisis in the news. Nearly 1.3 million households to exclusion. The decline in home values are a reality in many parts of the country. Mortgage debt by some owners of the house exceeds the value of their homeland.

2) Soaring consumer debt fuelled by credit card blind. An estimation of the Federal Reserve of the average seat families debt credit card $ 8500 in the year 2007.

3) The US Department of Commerce, the figures show a negative savings rate by 1% for the year 2006, we spent more than say that we won after tax. This is the lowest rate of personal savings since the Great Depression.

Many factors contribute to this state.

1), the Bureau of Labor Statistics, the figures show that in the last quarter of the year 2007 and the first part of 2008, low wage growth, it has failed, in step with inflation.

2) Globalization has many high exports few paid workers to force positions in the retail sector lower payment and post-service positions.

3) Soaring energy costs have risen sharply, prices in fuel supply vehicles of family, housing and heating of food in the family.

4) Low savings rates have reduced incentives to save. Nourrissent inflation and taxes, income savings accounts and CDs.

5) Perhaps the biggest mistake we as consumers, our enthusiasm and commitment indiscriminate credit. Buy now and pay later, seems to have as our national motto. Do you want a new car or a trip to Hawaii? Simply, the bank and your own credit against our equity. Take the family for dinner or to buy a new big screen television. Even more simple, from a lock of the average of nine credit card credit cards and reserved go for it.

Is there a simple solution? Certainly not, but there are still some steps you can do to help.

1) Use the credit as a last resort. Start a concerted effort and withdraw credit cards with the cards starting with the highest interest rates. Then reduce the number of cards you have to reduce exposure and the temptation to you, use it.

2) Take a second on the job. Enjoy additional revenue to pay your debts. Do not attract the money to buy more junk mail you do not need.

3) Start a home business. Consider the possibility, much can be started on a small capital budget. Be careful to keep what you know, and not take unnecessary risks.

4) Be sure the possibility of refinancing your house, if you cut your interest rate and payment, especially if you have a height-adjustable mortgage.

5) Refer to the whole family in planning a budget. You can a lot of fun without spending a lot of money. Go on a picnic, a meal and a movie night. Stay at home and play a funny game, rather than an amusement park driving. The possibilities are endless.

6), a little money to pay for any emergency. This can be very difficult, especially if you are not accustomed. Start now, it will focus on the long term.

Question: Why should I use a solid, long-term, a variable rate short-term loan on my property?

Answer: Simply put, with absolute certainty. The longer you can fix an interest rate on a credit, more can you guarantee that you have to pay.

As part of this crazy time in the country lending world, it is certainly a quantity of the unknown. If interest rates for loans to countries and for how long before the sky rocket? What happens with the values of the country, and will continue to be a good investment? Certainly all are still valid. So why not run the risk, and you can ensure a loan from the earth, you know exactly what the payment will be made for the duration of the mandate.

If the country ready for the future are beginning to rise, you can be sure that your rates are always the same. If you have a short-term loans variables country, security is only temporary. It is a constant game of guessing what prices for the next and when should I refinance. What is worse, if you wait too long, you often no choice, and the rate may be much higher, as your original.

So what if I am in a barrier of long-term interest rates on my credit ground and the considerable interest was down? The simple answer is now ready for the lockout and the course of your long. With a fixed rate long-term take the game to the riddle. Have you ever fear of the unknown and that the amount of your payment to be. Much more is a payment you know that you can afford, and remains the same.

Lenders especially for the Netherlands, you can often lending a long-term loan in the country with slightly higher prices compared to a short term loan in the country. For this reason, there is never a reason to have justified a variable in the short term of your loan ground. Make the right choice and consolidate your long-term future with a fixed rate, comfort and increasingly what your payments.