How you can get probably the most from that unemployment check

Unemployment requires a fantastic deal of pavement pounding, which has been scientifically proven to crush the soul into tiny pieces. The sometimes fruitless nature of a job search must not blind consumers to the truth that they’ll have to make that joblessness check stretch. To do this, you need a plan. Article source – Stretching the value of your unemployment check by MoneyBlogNewz.

Find fixed costs first

There are many people that nevertheless need to live frugally on unemployment benefits even though the U.S. job market is improving. Simply cutting out the Starbucks and purchasing less at the grocery store will not do it, advises AOL Jobs. To begin with, personal finance expert Jean Chatzky suggests working backward. You need to figure out what your fixed essential expenditures are. From there, you can go forward.

“I think the easiest way to budget is backward,” she says. “This is where my money is going now and then you can make changes.”

More than just fixed costs to review

Austerity measures must be put to action when you have only a joblessness check to rely upon. Chatzky states that more than just saving is essential. Anything that is not a fixed or essential cost in the budget needs to stop. Rent, mortgage and automobile payments are inescapable, and they also do not change from month to month. Do you have public transportation? Consider the saved costs by using it.

Many items are not essential. This includes things such as the Internet and cable TV. Sometimes it is hard to view television with how busy you are. With 600 channels and this schedule, you may want to reconsider. Similarly, the Internet can be a time-waster, although it can also be an invaluable job search tool. Try going to the public library to use the Internet instead.

“The people that I’ve seen throughout this recession that have the biggest problems are the ones who continued to live as if there were two salaries coming into the family when there was really only one,” says Chatzky.

New ideas to consider

The unemployed may have to consider some difficult questions to be able to remain above water financially. Will you rent out that room above the garage, pull the kids out of private school or sell your prized guitar collection?

Most financial experts say never to take money out of a retirement account such as a 401(k) unless the emergency is severe enough. That nest egg was built for a reason, and the tax penalties can amount to 30 or 40 cents on the dollar for early withdrawal. You may end up considering filing for bankruptcy in the worst possible situation, even though that is getting harder to do now. There are individuals out there to help you make a good decision. A credit counselor is one of these.

Citations

AOL Jobs

jobs.aol.com/articles/2011/04/04/tips-to-stretch-your-unemployment-check/

North Carolina Gov. Bev Perdue on unemployment benefits

youtube.com/watch?v=BwkD8Kyb96A

Horde of fraudulent attorneys tie up payment of BP oil leak claims

An oil leak fund of $20 billion was started by BP as directed by the Obama administration. A mere pittance of those mega billions has been distributed to Gulf coast residents who say their livelihoods have been overturned by the environmental and economic carnage. Sleazy legal professionals have created a burden for fund administrators who are being badmouthed by seekers of simple cash that are thwarted by demands for legitimate proof of loss. Resource for this article – Horde of fraudulent lawyers tie up payment of BP oil spill claims by MoneyBlogNewz.

Processing claims for the oil spill by BP

A year after the 2010 oil leak in the Gulf of Mexico, the Gulf Coast Claims Facility has paid $3.8 billion in BP oil spill claims — just 19 percent of the $20 billion in seed money set aside by the oil company. The BP oil spill fund has been dispersed by Kenneth Feinberg who was appointed by the Obama administration. Now, 201,261 claims have been paid, he says. There have been many more claims made though. Over 857,000 were made total. In five states there are 35 offices for the Gulf Coast Claims Facility. The BP oil leak claims can be paid by it until 2013, in August. The claims process has been considered unfair, slow and confusing by several individuals getting Feinberg a lot of criticism.

The proof being requested

Feinberg made a statement on Tues about the BP oil leak fund management saying “Amounts requested by claimants very often bear no reasonable relationship to the damages really proven,” since $20 billion was requested by one applicant. About 72 percent of the claims from the BP oil leak have had payments or offers made. There have been claims denied too. Others are pending until more documentation is produced. Fishermen not used to paperwork in deals and generally working in cash are having difficulty figuring out the BP oil claims process. The Coast Guard has not overturned any of the 574 cases disputing payments.

Attorneys attracted by the smell of money

Tens of thousands of Gulf Coast residents — particularly vulnerable populations with language and culture disadvantages for instance the region’s large contingent of Vietnamese fishermen — have been misled into signing up with lawyers or have been unaware that claims have been filed in their name. Feinberg spoke on the fraudulent activity. He said it was “an obstacle to the efficiency and speed in getting the checks out.” The New York Times reports that several law firms have targeted Vietnamese fishermen to con them onto their client lists. The larger the client list, the larger they payout for the attorneys when BP settles the claim. The New York Times reports of a San Antonio law firm that filed claims for thousands of Vietnamese, all listed as deckhands with identical earnings. There was not an acceptance with the claims. People were surprised when they realized they were on the list for a claim.

Information from

CNN Money

money.cnn.com/2011/04/18/news/companies/BP _spill_claims/?npt=NP1

24/7 Wall Street

247wallst.com/2011/04/19/the-BP -20-billion-gulf-claims-facility-has-paid-nearly-nothing/

Los Angeles Times

latimes.com/news/nationworld/nation/la-na-gulf-spill-claims-20110419,0,2595018.story

New York Times

nytimes.com/2011/04/19/us/19spill.html?_r=1

Americans nevertheless think housing is a good financial investment

A recent survey indicated that most Americans think real estate is a good investment. Since the recession began, the average value of a house has plummeted by more than thirty percent, and more than a quarter of all homeowners owe more to the bank on the mortgage than their houses are worth. Housing prices will recover eventually. It may take awhile, though.

Real estate confidence in Americans

The majority of Americans are confident in housing investments even with the economic downturn, a survey noted. Reuters states that 81 percent of Americans thought that a long term financial investment in housing was a good idea according to the Pew Research Center. More than 2,000 adults were surveyed by phone by the Social and Demographic Trends project, part of the Pew Research Center, and 37 percent “strongly agreed” that a house is the best long term financial investment, and 44 percent “somewhat agreed.” Most people believe that housing values will recovered within three years, but 23 percent said that they wouldn’t have bought their house if given the choice again.

April showers and May flowers

The current 2011 trend will hopefully be reversed in spring and summer when sales are expected to pick up, reports MSNBC. Realtors and real estate industry analysts are concerned that the number of underwater homes and lower demand will keep home sales and home values down for some time. This year, a 7.3 percent increase in home sales is anticipated by the National Association of Realtors though. Most housing industry experts say that the lenders are making recovery difficult since they’re being unwilling to lend.

Downturn fuels skeptics

The real estate industry is in a hard place right now. The American Dream is danger because of this. Robert Shiller, Case-Shiller Index co-founder, was quoted in a USA Today article that said security and lifestyle reasons are the only ones that people have to purchase a home. There was another economist that talked about the return on a home. Generally, the return is around 6 percent. With depressed costs, along with agent fees and other closing costs, it might be far lower than that for several individuals.

Citations

Reuters

reuters.com/article/2011/04/12/us-usa-housing-survey-idUSTRE73B0T220110412

MSNBC

msnbc.msn.com/id/42521765/ns/business-real_estate/

USA Today

usatoday.com/money/economy/housing/2011-03-20-home-ownership.htm

Charge card mail is busting out all over

Credit card mail may seem like spam, however it could be viewed as a sign that the consumer credit industry is beginning to loosen. According to Bankrate, it’s as if the waves of recession are almost rolling back. The Mintel Comperemedia study found that offers for new credit cards skyrocketed from 551 million in the fourth quarter of 2009 to 1.4 billion in the final quarter of 2010.

Just how credit offers stand out

In order to attract consumer business, more charge card offers are trumpeting no balance transfer charges, no foreign transaction charges and extended low introductory rates. Waiving balance transfer fees is particularly popular. Banks will go to extreme lengths just to get above the rest according to what Senior V.P. Andrew Davidson of Mintel told CreidtCards.com. Those banks last year that charged balance transfer charges, did it at a rate of only 3.06 percent, and about 40 banks and credit unions canceled transfer fees altogether.

Standing out above the crowd

The foreign arena or currency conversion charges are a big competitive area for charge card issuers. While not as visible as APR, annual fees and balance transfer fees, foreign transaction charges are significant to everyone who travels, whether for pleasure or business. The typical 3 percent surcharge on foreign transactions can cost quite a bit before the trip is over. Past year a study conducted showed that over 90 percent of bank cards include this type of fee.

HSBC, Chase, and Citibank; are a few the major banks that currently waive their foreign transaction fees.

Extended introductory rates: another bonus

Some charge card issuers push a zero-percent APR initially for some time, to try and get people to purchase into their card, this is often referred to as an extended introductory rate.

Mintel reported the introductory rate was around 13 months for the fourth quarter of 2010. However, that number is trending higher, claims Davidson.

“The squeeze on credit observed during mid-2009 is being reversed, and many issuers are now offering durations of 15, 17 or 18 months or more,” he told Bankrate. “We have even seen offers with 24- and 30-month intro rate durations in recent months.”

Low charge card rates can be attributed to legislation

The Credit Card Accountability, Responsibility and Disclosure Act (CARD) have helped stabilize credit card APRs. Mintel reports that fourth quarters average APR was 14.03 percent. “Many credit card companies have contrasted their APRs against the relatively high prime rate as a consumer draw,” said Davidson.

Articles cited

Bankrate

bankrate.com/financing/credit-cards/4-trends-in-credit-card-mail/

CreditCards.com

creditcards.com/credit-card-news/foreign-exchange-fees-going-up-1267.php

Pew Trusts

pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Credit_Cards/PEW-CreditCard FINAL.PDF

WhiteHouse.gov

whitehouse.gov/the_press_office/Fact-Sheet-Reforms-to-Protect-American-Credit-Card-Holders/

Shop around for a better credit card than this

youtu.be/FunpS4QXcRI

Stay-at-home partners could be hurt by CARD act needs

The CARD Act, passed in 2009, is meant to help protect customers. One provision of the bill is that those that provide credit cannot issue credit unless the applicant can prove that they can repay it. The bill is causing some severe unintended consequences, however. Stay-at-home spouses are very possibly going to be losing financial freedom, under the provisions of this bill. Article source – CARD Act could strip stay-at-home partners of financial identity by MoneyBlogNewz.

Rules the CARD Act put together

To be able to safeguard customers from credit card abuses, the CARD Act has several provisions. In the Act, the way income is viewed changes. There are new rules for businesses. When applying for credit, “income” is very specific. It does not contain community property or household income. Instead, all income on an application for credit must be individual. This is meant to keep consumers from over-claiming income or qualifying for credit that they do not have the income to pay back.

Consumers get CARD Act feel

Stay at home parents may have a difficult time with the CARD Act rules. The CARD Act makes it extremely hard for someone who stays at home to get credit even though a partner working might bring home plenty of money. While this prevents individuals with no independent income from getting credit they may not be able to pay back, it also prevents stay-at-home spouses from building an independent credit history. Without credit, there can be less opportunity for jobs. That will make it harder on an individual if the relationship ends suddenly.

Problems with the CARD Act and property that belongs to a community

Married couples have “community property” in 10 of the 50 United States Partners have equal share of whatever is in the marriage according to the shared property law which could be changed with a pre- or post-nuptial agreement. For couples in community property states, the CARD act will require them to split their financial lives. The way the CARD Act works, those in other states are out of luck. One partner can’t help the other get any debt.

The CARD Act affects you also

The CARD Act provisions will be really hard on any person who’s a stay-at-home partner. Are you a stay-at-home partner without a job? Just prepare to have to get your partner’s signature on anything from unsecured loans to credit card. This means that establishing your own, independent credit history is very important. Make an effort to keep some kind of employment going. Also, talk about finances with your partner regularly.

Information from

NCLC

nclc.org/

The Library of Congress

thomas.loc.gov/cgi-bin/bdquery/z?d111:HR00627:@@@D&summ2=m&

Citi checks itself from charging multiple overdraft charges

Egregious overdraft fees at Citi definitely won’t be quite as much so when the bank changes the way it clears checks. Banks were forced to offer consumers a choice with overdraft protection on debit cards with financial reform. However, banks were allowed a loophole with checking accounts. {On Monday Citi said it will curtail the practice of milking overdraft charges from checking accounts by processing smaller checks first|By clearing checks written for smaller amounts first, Citi is keeping itself from stealing as much money as it has in the past with bogus fees|The lying, thieving bankers at Citi have chosen to restrain themselves from repeatedly charging overdraft fees by clearing smaller checks first|By clearing smaller checks first, Citi is essential taking away from itself the chance to charge its customers over and over for bounced checks. Source of article – Citi to give customers a break by clearing smallest checks first by MoneyBlogNewz|Citi is checking itself from charging repeat overdraft charges simply by letting smaller checks clear before a larger one sends the account into negative territory. Article resource –

More money taken by banks

About $20 billion was charged by banks in 2009 for overdraft protection on debit cards. Because of overdraft on checking accounts, another $12 billion was charged by banks. bank lobbyists managed to get voluntary overdraft loan programs for checking accounts exempted from financial reform, but the FDIC is considering an opt-in requirement at smaller state chartered banks for overdraft coverage on paper checks and electronic payments. The FDIC is being told to get banks to require consent, by Consumers Union, which is the Consumer Reports non-profit publisher, before checking account coverage can happen. If the FDIC goes along, consumers can expect banks, including Citi and B of A, to create other charges for instance increasing monthly checking account fees. When regulators respond, banks will discover other ways to make money for nothing.

Citations

Associated Press

finance.yahoo.com/news/Citi-to-start-clearing-apf-1510892963.html?x=0&sec=topStories&pos=main&asset=&ccode=

Consumer Reports

pressroom.consumerreports.org/pressroom/2010/11/consumer-reports-poll-only-22-percent-of-bank-customers-have-opted-in-for-debit-card-overdraft-protection.html

New York Times

nytimes.com/2010/03/10/your-money/credit-and-debit-cards/10overdraft.html?_r=1

Threat of autopilot finances highlighted by $16 million cable invoice

Several companies claim that computerized billing systems make life easier and bills more accurate. One cable consumer has been charged $16 million for one month’s worth of television. Watching the March Madness games on pay-per-view was the beginning of this overcharging nightmare. This particular bill has been reversed already. The lesson, however, is that keeping an eye on your finances is incredibly essential. Article source – $16 million cable bill quickly reversed by Time Warner by MoneyBlogNewz.

Cable invoice costs $16 million

Daniel DeVirgilio is an Ohio resident who subscribes to Time Warner cable service. At the end of last month, DeVirgilio received notification that his credit card had been dropped when he tried to pay his cable bill. A charge of $1 million per basketball game during March Madness was put on his account by Time Warner. This added up to $16.4 million total. Upon being informed of the glitch, Time Warner reversed the charges.

The danger of financial autopilot

Daniel DeVirgilio, like many other people, had his cable invoice set to autopay. Monthly invoice pay services where consumers just give over their credit or debit card number take place often. Each month, the invoice gets paid on its own. Invoice payers don't have to worry about this. If the charge hadn't been $16 million and gotten his charge card dropped, Daniel DeVirgilio would never have noticed. This is the only reason why he noticed something wrong.

The bills need to be paid

The $16 million cable invoice teaches at least one thing. It may not be a good idea to use autopay. Remember due dates of bills is never easy. Everyone has trouble with it. You can do several things without forgetting to pay your bills while waiting for them to arrive. The first option is to do the simplest thing — pay each invoice the day you receive it. Financially, that may not always be possible, so tracking the due dates on a calendar you see every single day is another way to make sure you don’t miss anything. Lastly, you can put your bills on auto-payment, however schedule a few hours, once or twice a month, to read over each invoice to ensure that there are no surprises. A $16 million cable bill is unlikely. Still, you may end up losing a lot with a couple extra dollar charges every month.

Information from

Digital Life Today

digitallife.today.com/_news/2011/04/04/6405791-time-warner-charges-man-164-million-for-cable-service?GT1=43001

Yahoo News

news.yahoo.com/s/yblog_thelookout/20110325/ts_yblog_thelookout/ohio-man-gets-a-16-4-million-cable-bill