Tom Tessin asked:


We are in an economic crisis today. The mortgage lending rates are hurting and loans to consumers are now being shortened. Many major companies are afraid to let out much more credit. This can send us spiraling into a deep depression if we are not careful. The interest rates from credit card companies are getting very high. In order to compensate from the loses credit card companies find that they must charge us more fees and higher interest to compensate from those who are not able to pay back what they have borrowed. The employment rate is terrible with many being jobless. Lack of work, high interest rates is all overpowering effects on the economy.

What can you as a consumer do to help remedy this situation? First take a check on your own spending habits. Make a strict budget and stick to it. Also start a savings plan that you can use in case of the possibility that you might lose your job. Then you should pay off your credit cards and not use them unless it is a real emergency. When you do use your credit card make sure to pay it off in the months time allotted to you as a borrower. Do not open up multiple credit card accounts causing you too lose money in interest and fees. Be smart shop wisely. You can buy things at a much cheaper rate if you shop around to find bargains. We need to get back to the original pay as you go method that made our nation the great country that it is today.

The government is trying to bail us out by giving us some extra money in our economy. This is great idea if we use that money wisely. We cannot use that money to make more debts but instead use the money to pay the debts that you already own. You can also use the money for basic living expenditures but this is just a band aid not a fix in our economy. We need to work together to help mend the economy if we want to get back on easy street. We should look to our own nation when it comes to buying products. Buy American products in order to help the American worker. We may find that foreign products are cheaper but not in the long run if you find that we are unemployed with no money to spend then buying American is cheaper and wiser. Our economy needs to be sound if we want a sound credit system. Our use of how we charge and pay back our bills can make or break our economy. It may seem difficult at first but take control of your spending and it will work for us all.

As time goes on, the economy will only get better because it works in cycles. We are going to reach our high points and our lows; it’s a way of life. Just keep in mind that you are the one that’s ultimately responsible for your credit. Be careful and don’t spend over your head and the credit crisis shouldn’t hit you personally.

Zoltan Roth asked:


Let\’s take a look at how to build your self-esteem during hard times.There is a financial crisis all over the world as you know it. People are loosing their jobs, can not afford to pay their mortgages or credit cards and having difficulties to make a living. Everybody is having hard times.

Now, having a new car or moving into your dream home is not an option. Flying to the Caribbean or soaking on the sun in Hawaii is very unlikely to happen.

Nobody really knows where the economy is going or how our future will look like.There was the G20 Summit couple moths ago in Brazil, where 20 of the world\’s largest economies gathered to come up with the solution to solve the world financial crisis. So, what is the solution? They do not really know.The world\’s best financial experts don\’t know how to fix this.

But, there is an advantage of situations like this even if it\’s very difficult to acknowledge that.

People are more focused on REAL VALUES. People pay more attention to families, friends and loved ones. They spend more time taking care of each other than ever before. Their focus is on helping others who are in need.

People are trying to be happy with whatever they have. And, that is very important.

When you can not afford to dine-out you will start cooking to save money.You start cooking your daughter\’s favorite dish and you will see her smile after dinner, because that is what she was missing. Quality time with the family. Embrace that feeling and enjoy it.

Your focus has changed direction. You have more time to spend with yourself, your family and friends. Most of us having the same difficulties and that feeling can ease up the tension, knowing that you are not alone.

I can not emphasize enough the importance of the real values. You, your family and your friends.

Whatever happens in your life is not as important as your approach toward that particular event. You make the decision to feel good, energized and awesome or dwell on your misery and don\’t do a thing to live a happier and more prosperous life you all deserve. Focus on the real values and build your self-esteem.

So, WHAT TO DO NOW?

1. Make a list of things you have always liked to do. Make a list of things your children and spouse always liked to do and do it together.

2. Take long walks alone or with your loved ones. It doesn\’t cost you anything, but it\’s an interesting self-discovery and a wonderful way to explore others. During the walk ask questions. Try to figure out the other person\’s interests, hobbies and their inner values. Do these hobbies together if you can.

3. Reach out to others with kind words and a positive approach toward life.

4. Play board games with others.

5. Call a friend randomly and ask her or him about their hobbies.

6. Go out, watch the sunset and make a wish. Do that with your spouse or your children.

7.  Spend more time with people under age 6 and over age 70. It\’s truly an amazing experience. The honesty, playfulness and creativity of young children will touch your heart. I can guarantee that. The eternal wisdom of the elderly will take you different places. You start wondering: \” We all knew how to enjoy life when we were young. We have found that feeling again after we retired. So, why don\’t we just do the same thing in between?\”

8. Learn something new. Read a book or listen to music. There is so much you can do.

These are just very few examples of what you can do to have some fun during even these difficult times. People are always more important than any assets you own. Own the feeling of being happy, positive and you will become the richest person on this planet with your most valuable \”assets\” inside.

Richard Warren asked:


OK guys sit back and brace yourselves this one is not going to be funny. After I posted my blog on last Friday regarding my take on todays eonomy I began to see other opinions especially regarding it\’s effect on the modern day homeowner’s plan\’s or lack thereof on home renovations. In a blog posted 2/1/09 on “Walletpop” entitled “Home slump hits home decor trends”, Zac Bisonette cites “fancy kitchens and fireplaces that were so important to buyers during the housing boom are going out of style”. He goes on to say “It\’s hard to know what to make of these trends. Are they long-term changes in taste or is luxury just taking a leave of absence while people cope with plummeting job security….Even if luxury items like granite countertops and fireplaces are desirable, they may not be desirable enough to justify the additional expense.”

In the high flying days of the past ten years homeowners had available easy credit in the form of home equity loans, readily available credit cards and revolving credit terms from retailers. In 2008 with the U.S. banking and real estate crisis in full free fall these facilities have all but vanished. Banks have stopped lending, home mortgage loans are virtually a thing of the past and credit card companies have raised their interest rates and lower the credit available even to their best customers. Its easy to see why American’s taste for luxury items has diminished. The fact still remains, as I pointed out in my blog of 2/13/09, that this does not eliminate the need for refreshing of that tired old kitchen or bathroom to make your house more saleable if that is your fate or to make you home feel better to your family in these tough times. What it does mandate is a more frugal approach. Frugal does not mean “cheap” but instead indicates a more careful reasoned approach to how something is expended. Can you afford to replace your old laminated countertops with granite? Can you reasonably replace that linoleum in the kitchen with real hardwood floors? Can you afford custom made cabinets? new stainless steel appliances? Glass tile backsplashes? And the list goes on and on. In general the frugal answer is NO! This does not mean that you can’t make reasonable, attractive and useful changes to your kitchen or bathroom. You just have to be smarter in your choices as well as shopping smarter.

Here are some recommendations. Instead of granite you can choose from a wide assortment of man made surfaces, such as Corian, which in most cases can be half the cost of Granite and a whole lot easier to maintain. You can choose from dozens of forms of laminated flooring, such as \”Pergo” instead of hardwood floors again saving 50% or more. When recently finishing a family room/kitchen project in our basement I was able to find a weekend sale on laminated flooring at a major retailer for $.99 a square foot. That’s less than the $9.00 per sq.yard and less than the least expensive carpet plus my son was able to install it. We could not have installed carpet and that would have added another $3 to $4 per sq.yd or more to the price and we had the look of hardwood at a fraction of the price. As for custom made cabinets the best buy in cabinets and vanities today is in prefab cabinets which come broken down flat in cartons and you assemble them yourself. The most familiar of these come from vendors such as “Ikea” or like “Kraftmaid” available at the large home improvement stores. Not only are these cabinets a great buy but are high in quality and features. Can’t afford stainless steel appliances? Look at “Craigslist” any day and you will find great deals in practically new appliances at a drastic cut in price. The bottom line is shop smart and make educated choices. Take these ideas and team them with the suggestions I made in my previous blog such as upgraded faucets, sinks, new paint and other fixtures and you can have a great looking functional new look and space in your home at a reasonable attainable price. To reiterate my point, it is far more important than just vanity that we consider making these improvements. The economy is consumer driven. If we expect things to turn around quickly we all must regain our confidence that the American economy is resilient and has been a shining example to the world for 200+ years. To this end we need to invest in reasonable improvements. We need to spend carefully but we need to spend. Money sitting in a savings account drawing zero interest is not helping the economy. The banks aren’t lending the money, they are sitting on it. Investing in home improvements creates demand, creates jobs and works to restore the public confidence in our economic system.