Mortgage Rate News

Over the weekend, President Bush announced that today will be the first day that tax rebate deposits will go out. This is actually a bit earlier than originally planned. And although it only applies to some of tax rebate direct deposits, others will follow shortly, depending on SSN and when the tax return was filed. Tax rebate checks will start going out soon as well, also early.

Tax rebate: pay down debt

Many Americans are thinking about using the tax rebate to pay down debt. The consumer spending spree that we have been on for the last decade and a half is coming to an end as the subprime mortgage crisis affects credit markets and the economy. And Americans are feeling less secure about their financial situations. All of this conspires against the debt-based economy as consumers start to think that maybe an abundance of easy credit isn’t all its cracked up to be.

Tax rebate: paying for neccessities

The other thing that is popular amongst Americans is planning for the increase in costs to necessities like transportation and food. Food prices are rising and gas prices have household budgets straining. Cheap oil is no longer something to rely on, and that is driving up all sorts of costs.

Rather than being an economic stimulus, this tax rebate is more likely to keep Americans afloat. Will your tax rebate actually be what saves your personal finances from folding under the pressure?

There are many different uses that the coming tax rebate may be used for, but the general consensus is that consumer spending is no longer at the top of the list. After all, there are many more pressing matters that need to be attended to.

What will you use your tax rebate on?

Tags: mortgage blog, pay debt, home mortgage loan, tax rebate,
cheap oil, personal finances, use tax rebate

The holiday season brings with it more than just presents and cheer. For many of us, it also means increased debt. Dealing with debt is what prompts many to make New Year’s Resolutions of getting their personal finances in order. CNN Money has some great tips on dealing with holiday season debt. And one of the tips for dealing with debt happens to be to stop spending money your credit cards:

The next step may seem obvious, but a lot of people don’t take it, and that’s to stop charging on your credit cards. If you don’t do that, Reed said, “the bills will only get larger and the envelopes heavier and the stress greater.”

One of the problems we have is that it is so easy to just put purchases on a credit card. It’s convenient, easy and we don’t actually “see” the money go. And if you can’t pay the balance off, it’s easy to just pay the minimum and move on with the month. And this is what gets many in their personal finances. Paying only the minimum ensures that you are in debt for a looooooong time.

Some of the things you can do to help when dealing with credit card debt includes:

1. Trying to negotiate a lower credit card interest rate.
2. Put extra money toward one credit card at a time. Concentrate on paying off one (keep paying all minimums though) and then move on to the next.
3. Avoid putting more money on your credit cards.
4. Create a holiday fund. Save money all year to use on gifts during the holiday season.

You can get out from under that holiday season debt. But it means that you truly have to start the new year off right.

Tags: holiday season debt, dealing with debt, home mortgage loan, mortgage blog,
get out of debt, credit card interest rate

Merry Christmas from the Banks.com Mortgage Blog!

While I hope that you are having a Merry Christmas, there are some things to consider this time of year, beyond presents given and presents received. Mainly it has to do with credit and debt. This time of year often sees well meaning people going further into debt (especially credit card debt) in order to buy presents and make the holiday special.

However, this year the story has been a little different. Many consumers report that they plan to spend less this year, and many have waited until the last minute to buy gifts. In large part, this is due to the economy. Economic uncertainty and worries over a possible recession are causing many to wait for deeper discounts and bargain prices on many of the items they purchased this holiday season.

I hope that if you did go into debt to help pay for Christmas this year, that you have a plan to pay off the debt as quickly as possible. It may be fun to have a big Christmas, but it isn’t as fun to be paying it off for years and years to come.

Again, Merry Christmas from the Banks.com Mortgage Blog!

Tags: mortgage blog, pay off debt, home mortgage loan, credit card debt,
Merry Christmas, mortgage, recession