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The Dollar Stretcher
by Gary Foreman
gary @stretcher.com

Recently I’ve had a number of conversations about how the economy of the last four years has changed the way that many people think about money.

Historically, in the 60′s and 70′s our personal savings rate had been in the 7% plus range. Gradually it descended all the way down to about 2% by 2007. It rebounded sharply to the 5% range when the recession started. (St. Louis Federal Reserve http://research.stlouisfed.org/fred2/series/PSAVERT )

Or consider credit card debt. The total amount owed grew until 2007. For years in a steady upward trend. But credit card debt shrank 9% in 2009 and another 7% in 2010.

But a curious thing happened in 2011. By mid-yesr people began taking on as much debt as they were repaying. And in the 4th quarter they actually increased the amount that they owed on the credit cards. (Federal Reserve http://www.federalreserve.gov/releases/G19/Current/ )

With that in mind, I’ve been wondering if the newly adopted frugal ways will disappear when consumers either feel more comfortable about their income or just get tired of stretching a dollar (aka “frugal fatigue”).

One expert I sought out to discuss the issue was Guy Hatcher. He’s a CFP(r) and the founder of Advanced Planning, Inc.. He’s been in the financial planning business since 1987. That experience allows him a longer perspective that includes past recessions and what we learned from them. What follows is a series of questions I asked Guy and his responses.

Gary – I’ve heard you believe that the recession has changed people’s financial goals. Could you explain for us?

Guy – Along with the economic challenges we have all faced and the constraints of extra cash flow – not only from a government standpoint, but also each of us as individuals, the majority of consumers have had to make some serious financial choices. In our customer base, we’re having conversations about down-sizing – both in material and tangible purchases as well future expectations. Their goal is to increase their quality of life by eliminating a lot of the associated financial stress in trying to maintain higher expectations. Many have concluded that bigger, especially in regards to an increased quality of life, is not always better.

Gary – How can people make sure their financial goals don’t conflict with other goals?

Guy – Typically, people’s goals are tied directly to their finances. The type of house, car and vacation they go on this year are all types of goals tied directly to their finances. Even a new diet or exercise program will typically include some type of extra expense that people are now looking at more carefully. Prior to these economic challenges, it seemed more prevalent to base personal worth on a scorecard of “money.” But this recession has thrown away that scorecard for many families, and they are now focusing more on life improvement goals like spending more time around the dinner table with the family, increasing community involvement, and strengthening their relationships with their family and friends. People have redefined what is truly important to them, and in doing so, their financial goals are better aligned with their personal and family goals.

Gary – What positive lifestyle changes have you seen?

Guy – Again, using my customer base as a sounding board, people are downsizing their homes, reducing debt, using their credit cards less and less, and have less expendable debt. They prioritize sharing an experience together over independent and extra-curricular spending. Many have even renewed their faith and have increased their church involvement as a family.

Gary – Do you think that the lifestyle changes will remain if the economy gets better again? Or will people revert to their old ways?

Guy – The ’08 financial crisis shook our foundational belief in the efficiency and financial security of our government. The average consumer is now aware of the instability of not only our local economies, but also the governmental systems here and across our borders. What is it that we don’t really know, what has yet to be revealed about our local and world economy? I believe it is this kind of insecurity that will help to keep people’s personal financial situations in check for the future, especially for the current generation going through it; much like the generations of the Great Depression.

Guy makes a good case for consumers staying more cautious about their finances. Back in the 1980′s as a financial planner serving retirees I saw it firsthand. People who grew up during the depression were well aware that markets collapse and nothing financial is ever really guaranteed.

But, their are others who point to the 4th quarter spending statistics and suggest that consumers will bounce back just like they have in previous recessions.

Why is that important to you? Perhaps what everyone else does isn’t important. But what you choose to do is. Until recent years you might have spent too much money that you didn’t have. And built up debts in the process. My hope is that Guy is right and we all use the current recession as a learning experience. A lesson that we need to live within our income and save a portion of every paycheck for retirement or unplanned future expenses.

Also that what he calls “life experience goals” are not abandoned. Many people have discovered that you can have a fulfilling life without spending lots of money. It would be a shame to lose that knowledge.

Keep on Stretching those Dollars!
Gary

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Gary Foreman is a former purchasing manager who currently edits The
Dollar Stretcher website . You can follow Gary on Twitter . For more on ways to reduce financial stress.

Articles on www.debtplan.org have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Baby Savings
The Dollar Stretcher
by Gary Foreman
gary @stretcher.com

Dear Dollar Stretcher,
I’m expecting a baby! It’s my first so everything is new for me. I’m feeling overwhelmed with the whole thing. I can’t ask my mom for advice (long story) so I’m really on my own. There seems to be a million things that I need to buy. I want the best for my baby but if I buy everything they say I’ll need my husband will kill me. What should I do?
Krystal

Congrats Krystal!
It’s not surprising that you’re excited and a bit overwhelmed. First babies will do that. It’s their job. Your job is to grow into the role of parent. That means taking care of you and the baby physically. And preparing for the beginning of a new life in your home.

It’s a shame that your mother can’t help. Mothers have been imparting wisdom to their pregnant daughters for eons. Typically it’s some of the best advice you can get.

In your case you’d be wise to find a substitute. Look for someone from your mother’s generation that you respect. Someone with grown children. Ask them to spend some time with you during the pregnancy sharing their stories and advice. They’ll have a perspective that only years can bring. Some of the things that we do with our babies will have an affect years later. Good and bad. Find someone who can share that wisdom with you.

Look, too, for a friend who has had a baby recently. They’ll be attuned to the latest trends and resources. Things that weren’t available when your mom’s generation was expecting. Many of the tools are a big help. Your friend can help you find the best ones.

One thing that they will tell you is that when you’re expecting it’s very easy to overspend. As you say, you want the best for your baby. You think that your baby deserves the best. But, the truth is that your baby will do very well without the best of everything.

In fact, if you get the best of everything you could actually be hurting your baby. Worrying about how you’ll pay all those credit card bills is stressful. And mom being stressed isn’t healthy for baby either before or after delivery.

There are four things that newborns really need: a good home, good food, clothing and parental love. The first three cost money. The last one is priceless.

Begin with your home. Yes, it’s great if you can afford a completely decorated nursery for your baby. But, it’s more for the adults than the baby. What your baby really needs is a place to sleep, not Disney characters on the walls.

Changing tables, dressers and other baby furniture are nice, but not necessary. Some of those items do make parenting easier. For instance many parents credit the baby swing with saving their sanity. But, if all you can afford is a crib in the corner of mom and dad’s room then that will work fine.

Obviously that precious bundle will need nourishment. Breastfeeding baby can save you $1,000 or more in the first year. You can find plenty of info on breastfeeding with a simple search.

If you use formula look for coupons. You’ll find them everywhere. Consider making your own baby food. It’s surprisingly easy and can save a lot.

Also, if you’re struggling financially, find out about WIC. It’s a government program to support mothers and children.

Next, that little one will need clothes and diapers. Don’t spend a lot on fancy outfits. Chances are that you’ll get a few as gifts and that’s all you need. You won’t have your baby dressed nicely often.

What you will need is lots of every day clothes that can handle spit-ups. Those don’t need to be bought new. Check out craigslist and thrift stores for used clothes and friends for hand-me-downs. Think functional. In the first year babies can be hard on clothes.

Remember, too, that babies grow quickly in their first year. It’s common for moms to have ’6 month’ outfits that were never worn before the baby outgrew them.

As to diapers, you’ll find some moms wouldn’t dream of giving up the convenience of disposables. If you’re one of those you will spend more on diapering. You can reduce the cost somewhat by looking for diapers on craigslist and other used goods sites. Many parents end up with unused diapers that are too small for their baby.

Test out some store brand diapers. They work fine if you can find one that’s a good fit for your little one. Also, become a coupon clipper. Coupons are a great friend to new moms.

Cloth diapers can reduce the cost by half or more. They do take more work, but aren’t nearly as bad as you might think. Also, cloth diapers don’t end up in landfills if that’s a concern for you. Some moms are using cloth at home and disposables when baby is away from home. A bit of the best of both strategies.

Be prepared to resell things when you’re through with them. Online marketplaces make it much easier to buy and sell things. Some moms aren’t storing cribs and clothing for the next baby. They’re selling the items now and buying used when they’re expecting again. Often they can buy something, use it and then sell it for nearly what they paid for it.

For first time moms, what you don’t know can hurt you. At least financially. You’re the perfect target for marketers. Naturally you want to be the best mom you can be. And, without experience, so many things can seem critical to getting your baby off to a fine start. That’s why it’s important to talk with more experienced moms and grandmoms before you pull our your purse.

If you spend too much now you could actually be creating an unhealthy, stressful environment. That could make it difficult for you and dad to provide the love that’s really essential for that precious little person!

Keep on Stretching those Dollars!
Gary

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Gary Foreman is a former purchasing manager who currently edits The
Dollar Stretcher website . You can follow Gary on Twitter . For more on ways to reduce baby expenses.

Articles on www.debtplan.org have been acquired from a variety of sources. No content on this site should be considered financial or legal advice

2 Reasons Interest Rates Will Rise & 2 Ways to Avoid Higher Rates
The Dollar Stretcher
by Gary Foreman
gary @stretcher.com

Forecasting the future is always hard. Companies pay big bucks to economists in an effort to get an edge on what might happen in the financial markets. Sometimes they’re right. And, sometimes they’re wrong.

But sometimes a review of relevant facts can shed light on what the future may bring. Or at least make it easier to predict a direction. Given the current situation it would appear that forecasting the future for interest rates would be such a case.

For instance, experts expect the cost of borrowing to increase nearly 40% for the G7 governments. They’ll be borrowing over $8 trillion in the next year.

Now that’s not to say that everyone’s costs to borrow will increase by 40%. Part of that rise is due to the fact that some governments have a lower credit rating than they did a year ago.

Central banks and the Federal Reserve Board are trying to combat the problem by keeping interest rates artificially low to make borrowing affordable for the governments. But that’s not easy. Lower rates means that fewer buyers are interested. Rates have to be high enough to attract enough buyers.

Bottom line is that governments will be borrowing a lot of money in 2012. Competing with you and I for loans. The way they compete is to offer a higher interest rate on the money they borrow.

Another aspect of demand comes from you and I. Will we be borrowing more than we did in 2011? There’s some evidence that we will. Economic forecasts for the next year are all over the lot. But the average runs about 2 to 3% growth for the US economy in 2012. Any growth in the US economy is likely to be accompanied by increased consumer spending. Spending that will probably be paid for by increase borrowing on credit cards.

Again, more competition for loan dollars. Paid for with higher interest rates.

Ok, so let’s agree that higher rates are a distinct possibility. So what can you do to protect yourself?

The first answer is to take a look at your debts. How much do you owe on all your outstanding loans? Make a list. On that list include the current interest rate and whether than rate can be changed by the lender without your permission.

You want to concentrate on the loans where the interest rate can be increased, often called variable rate loans. If you’re unsure whether a loan is fixed or variable contact the lender.

Pay off as much of the variable rate loans as possible as soon as possible. Use any sources of extra money you can find. Cut expenses and/or look for additional sources of income that can be applied to your loan. Pay only the minimums on fixed loans and use an extra on your variable loans.

Then look for opportunities to shift debt from variable to fixed rates. If you have equity in your home now is a good time to consider refinancing. Use the proceeds to pay off your existing mortgage and credit card debts.

Another possibility for shifting from variable to fixed loans would be to borrow from your 401k to repay variables like credit cards.

A caution to those who struggle with debts. Reducing your credit card balances does not give you permission to charge them up again. You need to commit to keeping the balances down.

Naturally, there’s no guarantee that interest rates will rise. Those things are never certain. But, even if you take action and rates don’t go up you’ll be in a better position. You’ll have fewer debts and be paying a low interest rate on them. And, if rates should increase, you’ll be glad that you took action now.

Keep on Stretching those Dollars!
Gary

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Gary Foreman is a former purchasing manager who currently edits The
Dollar Stretcher website . You can follow Gary on Twitter . For more on ways to reduce financial stress.

Articles on www.debtplan.org have been acquired from a variety of sources. No content on this site should be considered financial or legal advice

Many people considering bankruptcy opt to use a Chapter 7 bankruptcy filing to help them erase the pressures of mounting debt. However Chapter 7 bankruptcy remains on a credit report for up to a decade and it can be extremely difficult to obtain new credit while a bankruptcy is reflecting on your credit report. There is another option available for individuals and that is Chapter 11 bankruptcy filing. This particular bankruptcy allows you more flexibility to restructure your debts and is easier to work with than a more severe Chapter 7 filing.

In a Chapter 7 bankruptcy, your assets are seized and sold to recover the debts owed to your creditors. This type of bankruptcy is very severe in that it remains on your credit for ten years and your possessions may be taken to make up for the debts you owe. Instead of filing a traditional Chapter 7, you may want to consider debt restructuring under a Chapter 11 bankruptcy filing.

A Chapter 11 bankruptcy can be used for individual debt reorganization. These types of bankruptcies were formally reserved for large corporations who wanted to remain intact while still repaying their creditors with a managed payment plan. However with recent changes to the bankruptcy code, a Chapter 11 bankruptcy can now be modified and applied to individuals seeking debt relief. Chapter 11 bankruptcy can be an excellent alternative to Chapter 7 or 13. It is an appropriate choice for consumers who have too much debt for Chapter 13 but who wish to avoid the severity of a Chapter 7 bankruptcy.

Another option for bankruptcy filing used by individuals is the Chapter 13 filing. This option is similar to Chapter 11 in that it is a reorganization plan that helps the debtor establish a payment plan without having their personal assets seized. At the end of the payment plan period, certain debts are completely discharged and the debtor’s credit record is cleared of these debts permanently.

Chapter 11 is also used in place of Chapter 7 or 13 when the debtor wishes to use a repayment plan and have their debt discharged without the need of a financial management course. A financial management course is a requisite in a traditional Chapter 13 reorganization plans. However all bankruptcies mandate credit counseling before any debts can be discharged. The amendments to Chapter 11 include the new sections which are sections 1115, 1123(a)(8) and 1129(a. These new sections state that a Chapter 11 debtor must commit to turning over a part of future wages to their creditors and all payment plans must be completed before a discharge can be carried out. This plan works well for consumers with an exorbitant amount of debt that needs to be restructured.

Understanding the basics of a Chapter 11 bankruptcy can help you determine whether this option is the best bankruptcy option for you. Chapter 11 filings are best suited for consumers with too much debt to file a Chapter 13 but who do not wish to choose a Chapter 7 due to its sever terms. Although the decision to file bankruptcy is never an easy one, availing yourself of options is the best way to make accurate choices that will lead to an improved financial condition.

Articles on www.debtplan.org have been acquired from a variety of sources. No content on this site should be considered financial or legal advice

Matching Tactics to Your Financial Goals
The Dollar Stretcher
by Gary Foreman
gary @stretcher.com

Last Saturday I went to the drag strip with some friends of mine. It’s an annual event for us. We’re a bunch of car enthusiasts who get to spend a day with some truly amazing equipment. For those of you who are not familiar with drag races here’s a brief explanation. Each race is a 2 car competition to see who can cover an 1/8 or 1/4 mile in the fastest time. They both start from a standstill.
An electronic signal tells them when they can go.

And then they explode off the starting line to cover the agreed distance (which is set at different legnths for different classes of cars). Huge tires spin trying to get traction. Smoke fills the air. The sound of the engines is earsplitting. An extraordinary amount of power is unleashed in just a moment. You can’t help but be impressed as these cars go from a standing start to over 200 miles per hour and cover 1/4 mile in just seconds!

There were some exceptions. Not every car was designed just to go as fast it could. Some were built with a sense of humor. For instance someone had a car that looked like a small railway engine. As you can imagine it attracted a lot of attention from the kids! I’m sure it goes fast, but that’s not it’s sole purpose. It was also meant to create a few smiles!

I had a great time. Always do. But, unlike my friend, who has been a drag racer since his teens, I tend more toward classic and custom cars. Which are an entirely different breed of car. They’re often restored to like new condition. Or, in the case of customs, modified into a work of art in sheetmetal. They’re driven with extreme care to minimize any chance of accidents or paint chips.

One frustrating thing about a day at the drag strip is the occasional car that has an equipment failure on the track. We saw one where the differential blew up and spewed grease for 1/16 mile. It took the clean-up crew the best part of an hour to make the track safe to use again. During those cleanup times you get to swap stories with your friends and other spectators (some of the stories are even true!) or go down to the concession stand to pay for an overpriced hotdog and drink.

Sometimes in those quieter moments I tend to think of how life illustrates our finances. This happened to be one of those cases.
It occurred to me that just as dragsters and classic cars are different and well-suited to their purpose, so should our financial tools and methods be chosen for the goal we want to achive. Let me try to draw an analogy that makes sense.

You’d be foolish to take a classic car that took years and many dollars to restore and run it on the drag strip. One trip could ruin paint you spent hours polishing or break parts that you can’t replace. That classic car’s purpose isn’t to go fast. If your goal was to go fast you’d be much better off to use a dragster. It is designed to accomplish your purpose.

The same thing is true of our finances. We need to know what our goal is before we decide which method to use. Take, for instance, our desire to get out of debt. We’d like to use a dragster to solve the problem. A quick burst of effort and the whole deal is over quickly. But, conquering debt doesn’t work that way. Chances are we built up the debt over years and years. We’re not going to get rid of it overnight. It’s going to take a longer, more dedicated effort to keep on repaying past debts for months and even years. More like our classic cruiser than the dragster.

We’ll need tools that can help us select which debt to pay first. Ways to keep track of what progress we’re making month by month. Even some rewards as we hit the quarter and half-way point to keep us motivated to continue pushing to our goal of being debt-free.

Just like the cars, we need to be tuned differently too. We all know someone who starts a financial program with a lot of tire smoke. And they travel the first quarter mile quickly. But then they lose interest and don’t make any real progress towards their goal.

It’s not how much enthusiasm we bring to the starting line that counts. Rather it’s the determination to continue to journey even when it’s tough to go on. When events make it hard to stay the course.

On the other hand our goal may be to get the best deal possible on a new refrigerator. This time we need to select tools and techniques that will help us right now. Knowing where to find reviews, looking for discounts and brushing up on how to negotiate are all immediate activities. This time the amount of energy we bring to the task today is really important. Much like the dragster taking off. A cruiser will not get the job done. We need our tools to work together right now.

So as we set financial goals, both now and as part of New Year’s resolutions, don’t forget to make sure that you’re driving the right financial tool or technique. Failure to get this right could leave you standing along the money highway waiting for a tow truck!

Keep on Stretching those Dollars!
Gary

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Gary Foreman is a former purchasing manager who currently edits The
Dollar Stretcher website . You can follow Gary on Twitter . For more on goal setting. Source: Matching Financial Tactics to Your Goals

Articles on www.debtplan.org have been acquired from a variety of sources. No content on this site should be considered financial or legal advice

Before You Hunt for a Job
The Dollar Stretcher
by Gary Foreman
gary @stretcher.com

Dear Dollar Stretcher,
I’m worried about losing my job. They’ve been cutting back our hours and things just don’t look good. I’d like to find a new job before this place goes down the tubes, but I haven’t looked for a job in years. I know that there are all kinds of job sites available, but what else should I consider? When I find a job I like to keep it so this is an important decision for me.
Currently Employed Colby

Colby, you’re wise to hunt for a job before you lose one. I don’t know if the facts support it, but there does seem to be truth to the old saying that it’s easier to find a job when you have one.

You’re not alone in considering a job hunt. A recent report from Metlife.com found that about 1/3 of surveyed employees hope to have a different job within a year. (source: Metlife 2011 9th annual study of employee benefits trends: A blueprint for the new benefits economy)

And, the number of people dissatisfied with their jobs appears to be increasing. The Society for Human Resource Management survey found that the percentage of unhappy employees has been rising since 2009. Like you, people are reacting to job uncertainty by hunting for new jobs

So how can you find a new job that’s perfect for you? Begin with some of the many job sites on the web. You might begin with an article we recently ran on “16 Totally Free Job Sites You Need to Know About”.

But today we’re not going to focus on how to do resumes or network to hunt for job openings. Let’s look a little deeper and see if we can’t help you decide what type of job, company and career you should be pursuing. Rather than sending out thousands of electronic resumes, we’ll try to narrow your search so that your efforts become focused.

Begin with some self-examination. That’s something that most of us are too busy to do regularly. But, it’s important if you want to change jobs/careers. Take a few evenings to think about you. What are you good at? Bad at? What things do you like or dislike? What things get you excited? How do friends and family think of you? What events in your life were really important? And, what do they tell you about yourself?

Spend some time alone with these questions. Write your answers down. That will force you to dig a little deeper for your answers. After you’ve finished the self-examination ask some close friends or family to answer the same questions for you. Often they’ll see things that we can’t see about ourselves.

Armed with this self-knowledge, the next step is to do a little dreaming. Think about what your perfect job would look like. Don’t make it practical. If your dream has you showing up at noon so you can sleep in, that’s fine. If it means the you take your netbook to the beach and work from there, that’s fine, too. This is a time to be unrealistic. Think big and bold!

Obviously, you won’t expect to find a job that looks exactly like your dream. But you may find that certain jobs/professions share elements with your perfect job. Wherever possible, you’ll want to choose potential jobs that include some of your dream ideas.

Next choose some potential professions to consider. You’ll want to take into account some of the personal traits you’ve discovered, but you’ll also need to be practical. This is the time to learn about any long-term trends for the profession. Use the net to research the field. Will there be job opportunities for years to come? Or is it a dying profession? One that’s being replaced by robots or computers?

Finally ask yourself if you can picture being in that profession ten or twenty years from now. Will you be able to handle the physical or mental challenges? Or would you be totally bored doing the same things over and over?

You don’t want to change jobs or professions only to find out that you’ve run out of opportunities in a few years. Better to discover that now before you’ve made the effort to find a good job.

Colby, by blending the practical and ideal you should have a good idea what type of job and company you’re looking for. So target your job hunt on those targets. Let others send out thousands of resumes. You focus on the few and take the extra steps to increase your odds of success with them. Don’t just send a resume. Send a resume and follow up with a personal call. Use LinkedIn to make friends within the company. Use multiple resources to reach your goal.

Hopefully you’ll find a job that suits your skills, provides ample opportunity in a field that can supply a steady income for many years to come.

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Gary Foreman is a former purchasing manager who currently edits The
Dollar Stretcher website . You can follow Gary on Twitter . Source: Before You Hunt for a Job

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

The economy of Rhode Island has seen slow to little growth over the past two years. The RI state officials have recognized the need for change and are putting their efforts towards revamping the pension plan system for retirees of Rhode Island. The proposed changes bode well for the future outlook of the state’s economy but retirees wonder whether the proposed changes will reduce the retirement they feel they are rightfully entitled to.

The new changes to Rhode Island’s pension plan system are being proposed by Governor Lincoln Chafee and Treasurer Gina Raimondo. The plan was posed to state officials and the hope is that the proposed changes will cut spending in the public sector in regards to pension plans for the retirees. These cuts in spending will in turn work to boost the faltering state’s economy. The new proposals offer a retirement plan that combines the investment account vehicles of traditional 401K plans with pension plan style accounts. This new plan would also raise the retirement age for state workers as well as put a stop to pension increases related to cost of living.

There are many supporters of the proposed changes including a lobbying organization called EngageRI. The co-chairman Ed Cooney stated “I think it’s fantastic…if Rhode Island solves this pension crisis it would send a clear message that Rhode Island is open for business.”  Businesses would be drawn to the state if they are able to resolve the issues with their pension plan budgeting and system structure. This would show prospective businesses looking for a state to base its operations that Rhode Island offers stability and structure.

Without changes to the pension system being implemented, the state of Rhode Island is likely to face tax increases and cuts to government services. Although changes to the pension system are necessary, many state workers are against the new proposals. The increase in retirement age and the decrease in pension pay outs relative to cost of living are making many residents unhappy. State AFL-CIO president George Nee spoke at a recent forum about the proposals and stated that the proposal will renege on promises which were previously made to state employees and workers will most likely sue the state if the plan is enacted. Nee went on to say that “It’s a political problem, it’s a legal problem and it’s also a person problem because behind each of these numbers there’s a person.”

It seems there are no cut and dry solutions to resolving the pension plan crisis in the state of Rhode Island. Although the changes will cut spending and serve to boost the state’s overall economy, it seems that many workers approaching retirement age are bristling at the proposed changes. The plan is set to receive its first legislative hearing shortly. Whether the new plan is adopted and these changes take place is yet to be determined. Until then, many state workers hold out hope that the economy can be boosted without denying them the type of retirement they have worked for years to achieve.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Nebraska’s economy has been demonstrating steady signs of consistent growth over time. It is the state with the second lowest unemployment ranking and is making leaps in the bio-fuels industry. With steady and consistent growth, NE should continue to be one of the strongest states to lead the nation in its economic recovery.

Nebraska has managed to come out ahead despite setbacks in the 2008 recession. Its strongest areas appear to be in the fields of agriculture and bio-fuels. Nebraska continues to be one of the highest producers of corn which is in great demand. One of the main uses of the corn exported from Nebraska is for the production of ethanol which is a required ingredient in gasoline.

Omaha, Nebraska was ranked in 2009 by Forbes magazine as being one of the fastest recovering major metropolitan cities. It noted that ‘Omaha’s economy is less dependent on manufacturing than other Midwestern cities and is boosted by a strong agricultural sector and growing bio-fuels industry.” Nebraska also has an established financial market that is built on long standing banking establishments such as Mutual of Omaha. In addition to it strengths in agriculture, bio-fuels and finance, Nebraska has strengths in other areas including healthcare, data processing and call centers.

Nebraska’s economy has been bolstered by its strength in various sectors. It has one of the lowest unemployment rates in the nation at 4.2 percent. In addition, Nebraska ranked second overall in the least amount of foreclosures and fifth as having the lowest percentage of non-mortgage debt. These strong figures are a testament to the strength of Nebraska’s economy. One of the contributor’s to Nebraska’s economy was the implementation of the Talent and Innovation Initiative. This four sectioned economic development package was created to assist with business development as well as to increase internship opportunities for college aged students. The overall goal of the program was to improve investments in Nebraska’s high tech and startup endeavors.

The majority of Nebraska’s economic proficiency has stemmed from Governor Dave Heineman’s smart planning and cost cutting measures. The governor began his term in 2005 and has been taking drastic measures to restructure the state’s budget. Some of the changes he has implemented include travel restrictions and overtime restrictions for state officials in the public sector. He has been maintaining his promises of not raising taxes in order to avoid an inflated state budget and “spending money we didn’t have.”

Proactive measures taken by the governor and the high demand for crops produced by Nebraska have served to stimulate the state’s economic growth. Instead of succumbing to the foreclosure crisis that has afflicted other states, Nebraska’s rate of foreclosure has remained consistently low. In addition, with the second lowest unemployment rate in the nation, Nebraska is positioned to be at the forefront of a recovering economy for the entire nation.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice

Utah’s unemployment rate has decreased slightly in recent news; however the change is slow in coming. There are still many residents of UT State left without jobs that are struggling to make ends meet. Unemployment insurance has served as a bridge in income gaps left behind from lost wages; however residents hope that more stable income will be forthcoming in the near future.

The national unemployment rate has remained steady at 9.1 percent and Utah has been not far behind with unemployment rates at 7.8 percent as of last May. However that number has been slowly decreasing as data from earlier this year reflects a slow filtering of new jobs into the Utah economy. April registered the unemployment rate at 7.4 percent while May of this year saw that number move slightly down to 7.3%. Although the decrease in the unemployment rate appears miniscule, any amount of change provides Utah residents with hope that their economic situation will improve.

As of now, roughly 99,700 Utah residents remain unemployed. Governor Gary Herbert was recently quoted as saying “These latest unemployment numbers reinforce that Utah’s economy is moving in the right direction…We recognize that there are still far too many Utahans who are unable to find work, but I’m confident that we will continue to steadily create jobs.” The Governor’s words of optimism are encouraging for the residents and according to the Utah department of Workforce Service, about 17,400 jobs have already been created over the last twelve month period. The complete wage and salary employment on record for Utah is at 1.2 million while job growth is estimated at 1.5 percent. The increase in wages and jobs is evidence that the Utah economy is moving in the right direction.

Despite the 17,400 increase in jobs, data has evidenced that there are fewer people age 16 and older who are holding down a job. In May of 2010, that percentage was 63.2 while May of this year showed that percentage at 62.0. This trend showing fewer people in the workplace may mean that many Utah residents are trying their hand at alternate sources of incomes and pursuing self employment opportunities. It may also mean that Utahans are returning to school to further their education. Mark Knold, a senior economist with the Department of Workforce Service stated “Some people may have stopped looking for a job and have exited the labor force due to discouragement or to pursue further education, bringing down the unemployment rate.”

The Utah economic state is similar to that of many other states throughout the nation. Improvements are slow in coming but on the upside, the economy is improving. With thousands of new jobs being added throughout Utah State, it should only be a matter of time before the unemployment rate reflects these positive changes for the State of Utah.

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Repaying student loan debt can be difficult. When faced with multiple loans all due on different dates, it can be hard to balance all the due dates and keep everything on track. This coupled with the drop in employment rates after college graduation can cause an increase in student loan default rates. For those who have experienced a student loan default, learning the steps to take after the fact can helping rehabilitating credit and restoring your account.

A student loan default occurs when payments have not been made on time. This affects your credit as the delinquencies will be immediately reported and will be reflected on your credit report. Unlike unsecured credit card debt, student loan debt cannot be discharged through a bankruptcy filing or with a debt settlement company. However there are steps you can take to get the debt repaid.

Prevention is always the better than a cure and that is also the case with student loan debt. Instead of trying to recover from a defaulted loan, it is better to prevent the default by applying for a student loan deferment. A deferment is actually fairly easy to obtain and the only real requirement is that you show proof of financial hardship. You may have to show a benefit letter from a government agency for food stamps or Medicaid. In some instances you may simply have to email copies of your pay stubs to show that you are not making a sufficient amount to repay your debt at the current time. The other option is to apply for forbearance which varies slightly from a deferment in what documents you are required to show and the length of time it lasts.

If were unable to apply for a deferment or forbearance and your student loan has reached default status, the best thing to do is to make arrangements with your creditors for repayment. Your payments may be as little as fifty dollars a month for a specific length of time such as nine months to a year. After this time period has elapsed and your payments have been consistent, your loan will be reinstated. This will be updated on your credit report and will help to improve your credit rating. If your loan was with a third party collections company, after it has been reinstated your loan may be sold to another company at more favorable repayment terms.

If you are unable to make repayment plans with your lender, you might be able to consolidate your student loan debts. A student loan debt consolidation may allow you to combine multiple loans into one easy payment at a lower interest rate. To find out about consolidating your loan, you can speak to a debt consolidation company who can assist with this.

A defaulted student loan can have a negative impact on your credit score. This can affect your ability to get a car loan, or even rent an apartment. To handle a defaulted loan, it is best to negotiate directly with your lender for a manageable payment arrangement. If possible, try to avoid a default altogether by applying for a deferment or a forbearance on your student loan debt.

Articles on this site have been acquired from a variety of sources.  No content on this site should be considered financial or legal advice