With increasing amount of credit card debt being attributed to your credit card account, you need to find ways to pay off

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your debts in a suitable and easy manner. One of the main reasons for this rising credit card debt is excessive usage of credit cards for every purchase possible. Very soon you would need to consolidate debt in order to get out of your debt problems. However, this is not as easily done as said. If you want to approach a professional debt relief company, you have to keep a number of factors in mind like whether they are authentic, how much they are charging for their services and so on. If you don’t want to get professional debt help, you can consolidate your debts on your own.

1. 1.      Take out a consolidation loan – If you own a property, then one of the best ways to consolidate you credit card debts is taking out a consolidation loan by keeping your property as collateral. If you have built up enough equity on your property, then you can convert your equity into cash by taking out a loan against it. Such a loan can either be a home equity loan which is a second mortgage loan, that you take on top of your first mortgage with your house as collateral or it can be a cash-out refinance. In cash out refinance you take a new mortgage loan of amount that is higher than your old mortgage loan and use the difference to pay off your credit card debts and thus consolidate them. The main reason to use your property for consolidating your debt is that a loan which is secured against collateral has lower rate of interest. Thus you get to make lower monthly payments to get out of debt.

1. 2.      Use balance transfer method – Another way in which you can consolidate your debts is transferring your balances in the higher interest credit card to a single lowest interest one. In this way you can make payments on all your debts by paying on a single credit card. Thus you can see how with this method you get the dual advantage of making a single monthly payment towards all your debts and also making lower payment in order to get out of your debts.

Thus you can see how the two ways in which you can consolidate your debts on your own makes the process of paying back your debt easier and also help you save money in the long run.

There have been many predictions during the past year from economists and financial experts as to how the Financial

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Markets will fare in 2012 but at some point the market will figure out that it is impossible for us to resolve our borrowing, no matter how much the Federal Reserve prints in its Quantative Easing Programs I and II.

In reality the national debt is approximately $1.7 trillion. A lot of creative accountants might put it at 1.2. or 1.3 but the numbers can be juggled and crunched several times over before the $1.7 million becomes the fact that can’t be denied.

We have seen what has been happening in Europe; in particular Greece and Ireland, and we can directly compare the European Union crisis with what is occurring within the USA. You simply cannot continue to spend what you don’t have.

The EU states are imposing austerity measures; the USA is printing money which is not an option available to EU members. California and Illinois, to name just two, cannot print money and those two states are in almost the same situation as Greece and Ireland. Austerity measures are not working in the EU where there is widespread discontent so why would anyone believe that similar measures would be successful in California? It just doesn’t make sense.

Finance Future in 2012

With the eighth biggest economy in the world, California’s debt is astronomical and rising; the austerity measures that are being put into action have impacted badly on new business start up. The Secretary of State has closed all its agency offices putting more pressure on its main office in Sacramento.

It can take up to 20 weeks to form a business, how good is that for the economy and Financial Markets? Perhaps it would be more appropriate to redirect a little from the $2.1 billion it spends annually on its prisons and some of the $4 billion that it has budgeted for building new prisons into business start up.

Unfortunately, there is no quick fix for the greatest recession since 1930, more particularly when we allow institutions such as banks to be bailed our by the American taxpayer.

Naturally if the taxpayer doesn’t dip his hand in his pocket the banks will close and it would appear that the governments of the USA and Europe are alike in their reluctance to confront bankers, tell them that it is their mistake and close them down.

The bad investments made by the bankers would have to be absorbed by everyone but before we issue licenses to the queue of budding entrepreneurs waiting to

Finance Future in 2012

open new banks, a massive banking reform bill needs to be passed so that this sort of crisis never occurs again.

The speed with which commodity prices have risen is directly linked to the devaluation of the US dollar and our politicians seem only concerned with how to continue doing this.

When looking at the Corporate Leverage Index 2012 is not going to be the best year for buying stocks. This index relates to the price you pay for stocks that are not tangible assets but premiums that are solely speculative. Equity equals ownership and usually if you own stocks it is common to think in terms of profit or loss.

The reality is that you become a part owner of a business when you purchase stock and tangible assets should represent part of the value of the stock you hold. Tangible assets in companies currently are so low they are off the scale which suggests that there is more risk in stock ownership than there has ever been. This doesn’t mean that you shouldn’t consider buying stocks but unless you are prepared to invest in the long term, you should not gamble with your money.

The Financial Markets are fluctuating with such highs and lows that it is difficult to predict exactly what is going to happen but without appropriate, achievable government policies this volatility is not going to end any time soon.

Most States are experiencing extreme financial problems with Illinois and California virtually bankrupt. Pension programs are at high risk in a lot of States where investment speculation is unlikely to ever achieve the results that were forecast. Our government doesn’t seem to be acknowledging that there is a problem of huge proportion but it is to be hoped that we will be better informed about such matters than the people of Greece and Ireland were, where one day everything seemed to be fine and the next the country fell apart.
Recovering from an economic crisis entails having a competent and consistent government in place in the long term; a lot of hard work and saving; scrutinising social benefit claimants so that only those that are really entitled receive them and lowering taxes so that investors and entrepreneurs are willing to take a risk on developing new businesses and employing personnel.

This is not happening in the USA or Europe and unless it does we will continue to see the volatility in the Financial Markets, and although there may be the occasional high our politicians will manage us into one financial crisis after another. Current investment in any of the markets should be to capitalize on the trends but to not take any high risks.

Many economists believe, based on the political mismanagement of the economy, that there will be another major disaster between 2016 and 2018.

The situation in Greece may appear to be over following the bail out from the International Monetary Fund and the EU but it is highly likely that the country will continue spending money in the same way as it always has which will magnify its problems. The USA is heading in the same direction. This message may seem overly pessimistic and it is certain that the USA will continue to function despite its problems however, the better times to come are unlikely to happen until after the next financial disaster by which time not only our government but those around the world will have learned how better to manage the economy.

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As a consumer, you may be surprised that economists are telling us that the worst of the recession is over because you are not feeling it and if you haven’t noticed the effect in your pocket or bank balance the chances are that the recovery isn’t happening as fast as the predictions.

The credit card interest rates on cards carrying debt have gone up and may continue to rise.  The mortgage interest rates could rise to as much as 8% during 2011 so if you have a fixed rate you will benefit. Oil and gas prices are likely to reach record highs in 2011.

Consumers like you drive the economy forward and it is this process which influences your standard of living, your career prospects, you income and your enjoyment of life.

As the economy comprises largely the individual wealth of Americans it has to thrive for consumers to achieve and as the economy grows most people benefit.

A measure often used to ascertain how the economy is progressing is GDP quarterly figures produced by the Bureau of Economic Analysis which define how many good and services are produced in the USA.  However, these figures do not necessarily tell us everything we need to know.

We assume that if there is growth in GDP then the economy must be fine.  What it can mean is that although we are not seeing sales figures drop there are a lot of people who have lost their jobs recently and therefore cannot benefit from the growth.

In a time of recession most businesses will have run down stocks rather than replenish them so it seems likely that the GDP figures will be a lot different during 2011. Unless you have a high income, as a consumer you cannot do much to improve the economy because you will be consuming less and you can only increase your spending if you pay lower taxes or generate more income.

When the price of goods increases, we refer to this as inflation. The consumer price index shows us the cost of normally purchased items.  When the Federal Reserve prints more money it devalues the dollar and inflation ensues so when your dollar is worth less, naturally you consume less which demonstrates how economic growth or lack of it affects you.

As an individual, though times are hard, saving will assist the economy in the long term.  If everyone put a little aside from their salaries initially the economy would dip but when people have more money in their savings accounts, they will have more confidence to spend some of it and this should achieve an upturn in the economy.

As an individual there is not much you can do as far as how the recession affects you and we have to rely on our politicians to manage the finances of our country.  Since we are experiencing the worst recession since 1930 most of our politicians have not experienced this before and so it is a learning curve for them.  We have to hope that they will learn soon how best to effect a recovery.

If you are considering purchasing a house in 2011 this will be one of the best years to go ahead and do it.  The housing

Finance Future 2011

market is at an all time low and with the possible release of foreclosure property from banks and lenders imminent, you will find an abundance of bargains.

Conversely, selling your home will not be easy this year with so many bargains around.  2011 will definitely be a buyer’s market.

Finding lenders will be difficult unless you have excellent credit so, if you need a mortgage, be prepared to meet the high standards that lenders are setting to prevent them having to buy their loans back.

Now is also a great time to consider re-financing an unstable ARM to a fixed rate mortgage.  Until the economic situation stabilizes, you ARM could soar up to 8% in 2011.  Acting quickly will secure your personal financial stability.

There are some political indications that the government may cut the mortgage interest tax deduction which will form part of other changes to the tax code.  Bear this in mind when discussing finance or re-finance with a lender to ensure you get the best deal available for your personal financial requirements.

Consumer studies suggest that credit card use will increase during 2011.  Borrowers used their credit cards more responsibly during the third quarter of 2010 which has inspired the credit card industry to be cautiously optimistic.  Unfortunately, there is a high possibility that you will be penalized with higher interest rates if your card is carrying a debt.  With more and more credit card issuers offering reward programs, ensure that you study all offers that are made to you so that you can make an informed choice.

In the current environment of economic uncertainty and declining credit scores there will always be financial predators waiting for an opportunity to offer cards that are impressive and appear to have some association with a reputable bank but always read everything before accepting one of these, especially the small print because hidden fees and high interest rates are not things you would want to subscribe to.  The same applies to any offer of a loan.

The currency/dollar value is likely to fluctuate considerably during 2011.  This is an excellent time to hook up with businesses which trade and barter services and goods because not only is it an excellent way to save money but also ensures that you are not paying for them with devalued or overvalued currency.

Now is also a great time to consider re-financing an unstable ARM to a fixed rate mortgage. Until the economic situation stabilizes, you ARM could soar up to 8% in 2011. Acting quickly will secure your personal financial stability. The internet has made looking for personal loans at www.credit.com and loan sites extremely easy.

In the aftermath of the BP fiasco the government and oil industry have several reasons to increase the price of gas and oil possibly as high as $4-5.00 per gallon.  A significant political reason will be to push us all into accepting alternative energy and we are already experiencing inflated prices in the oil markets.  Your budget will be less affected if you drive a fuel efficient vehicle or pool cars when possible with neighbors and friends. Any model of car that does 35 – 40 miles per gallon is good.

Finding lenders will be difficult unless you have excellent credit so, if you need a mortgage, check your www.freescore.com free credit score and then be prepared to meet the high standards that lenders are setting to prevent them having to buy their loans back.

In the aftermath of the BP fiasco the government and oil industry have several reasons to increase the price of gas and oil possibly as high as $4-5.00 per gallon. A significant political reason will be to push us all into accepting alternative energy and we are already experiencing inflated prices in the oil markets. Your budget will be less affected if you drive a fuel efficient vehicle, like hybrid car dealerships Dallas has to offer, or pool cars when possible with neighbors and friends. Any model of car that does 35 ? 40 miles per gallon is good.