Long Term Unemployment Does Not Mean Laziness

It’s easy to dismiss the people who have been unable to find full time work as being lazy, but that’s not necessarily the case.  Many of those who are unable to find work are highly qualified people that, until the recession hit, were gainfully employed in respectable jobs.

Now that there is a recession, those people are willing to take any job available, but competition is fierce, and most companies are reluctant to employ qualified accountants or computer programmers to stack shelves or flip burgers. Students and recent high school graduates can find menial work easily, but those with a lot of experience are hearing the “You are overqualified” line over and over again.

The American Dream

Some of the people who are long term unemployed are choosing to start their own businesses because they have nothing left to lose.  They believe that working remotely out of a spare room or a shed in their garden is a good way to keep costs down and bring at least some money in.  While they should be commended for their dedication, most of those small businesses fail.  It takes more than just a good idea and a bit of elbow grease to grow a competitive business, and while overheads are lower for someone working remotely (perhaps running a virtual assistant business), competing in a buyer’s market, where outsourcing and agencies are so common, is incredibly difficult.

Support for Older Workers

A large percentage of those who have become long term unemployed because of the recession are older workers.  Many of these people have fairly narrow specialist skillsets, and had been in their old jobs for many years.  The skills that they posses are no longer marketable, and this makes it difficult for them to find new jobs.

To prevent an entire generation of the workforce from being left behind, it’s important to ensure that these people are given a chance to update their skills. These older workers are hard working people that do not want to live on handouts.  They are more than willing to work for a living, they just need assistance in order to learn the skills that will allow them to compete in the modern workplace.  For some industries, all that is needed is a basic course in IT.  For others, re-training in modern tools and machinery would be valuable.  Some companies are unwilling to train workers over a certain age, but in some ways, training a dedicated older worker may be a better investment than training someone younger that might choose to leave the industry after just a year or two.

Guest article written by James Harper on behalf of Maintel; specialists in remote working technologies. Find out more here.

Recession Begins

Once the recession began, the housing bubble burst and Freddie Mac and Fannie Mae found themselves on the verge of a financial meltdown, which meant that all the homeowners that had their mortgages funneled through the two companies were also facing a financial collapse and the likely loss of their homes and the investment made in their homes up until that point.

As housing prices plunged, many homeowners found themselves unable to refinance out of their high interest rates to a more affordable payment. Many homeowners had entered into “teaser” or introductory rate loans, whereby the loans’ interest rates were fixed at an off-market low interest rate, resetting to a much higher interest rate after the introductory period. As banks tightened credit standards, many companies suffered liquidity shortages, leading to both a failure to borrow, which meant they could not purchase goods and services at previous levels, including employee services. Many Americans lost their jobs, increasing the mortgage woes as they too became unable to make their mortgage payments. On and on spiraled the econmy, adding woe after woe.

Bail-out

In order to combat the destruction that was coming (and very much already underway), the United States government decided to bail out Freddie Mac and Fannie Mae, thus avoiding the immediate financial calamity that would have ensued. While there was much debate over whether to assist, and in what form that assistance should take, the government ultimately decided to initiate two programs that would aim to alleviate the financial woes and insecurity that came with the financial bailout of Freddie Mac and Fannie Mae.

Government Programs Initiated

The two government programs that were started were the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP.) Both programs met two different aspects of the home mortgage crisis, and helped alleviate any of the insecurity associated with the near collapse of Freddie Mac and Fannie Mae and the near collapse of the American economy as we knew it.

HARP

HARP is a program designed to assist homebuyers with the refinancing of their home mortgage. The program is specifically designed for homeowners who are not behind on their home mortgage payments. HARP was created in order to counterbalance the decline in home value that occurred during the recession. Because of the decline, most people’s homes and land were not worth the same as it was before the recession. In most cases, HARP helped people adjust their mortgages rates to pay a lower amount.

The eligibility requirement for HARP are as follows:

• Freddie Mac or Fannie Mae must have at one point owned the mortgage
• The mortgage must have been originated before May 31, 2009
• The Mortgage cannot have been refinanced previously under HARP
• The loan-to-value ratio must be higher than 80%
• The homeowner’s mortgage history must be good

HAMP

HAMP is a program meant for people who are struggling to pay their mortgage rates. One stipulation is that the person seeking assistance from HAMP must not be unemployed, but still facing financial difficulties that hamper their ability to pay their mortgage rates on time. HAMP seeks to lower a person who qualifies overall rate to 31% of the person’s adjusted monthly income.

An expanded version of the program, with wider eligibility requirements, is expected to take place by June of 2012 at the earliest, and probably will not take effect until after the presidential elections in November of 2012.

Here are the eligibility requirements for the HAMP program:

• The house is the primary residence of the mortgagee
• The mortgage was originated before January of 2009
• The current mortgage payment exceeds 31 percent of the person’s income
• The person owes at least $729,750 on the current mortgage.
• The person is undergoing provable financial hardship and the person is either delinquent on their current payments or in danger of being so.
• The person cannot have been convicted of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction in the last 10 years.

These programs have very strict requirements and have been criticized by not affecting enough Americans. Many would like to see the programs go further, or new programs created, to assist more Americans. Others argue that these programs are simply subsidizing those individuals who made poor financial decissions, at the cost of individuals who did not.

Regardless of your political position, these programs exist, and for eligible individuals they offer very real assistance. Tthere are still people who could benefit from them who have not taken action. If you are struggling with your mortgage, you may be eligible for one of these two programs.With interest rates at historic lows, and the housing market beginning to show signs of life, now is the perfect time to take advantage of these programs.

Keeping people in homes helps everyone in the community, as home values stabilize, property tax revvenue increases (supporting schools and other local government services) and we have fewer people struggling to find a place to live, after suffering horrendous devastation of their credit scores.

If you are one of the people who can take advantage of one of these two programs, don’t languish under the burden, begin the process to crawl out from under the mound of debt today!

Image from PhotoSpin Premier Collection (licensed)

David Nance refinanced his home under HARP and has been incredibly happy that he did so.His ability to make his mortgage payments and keep his home has helped him, his family and his neighbors. He found a mortgage broker online with whom to work using the services at http://www.personalhomeloanmortgages.com/broker.

1. Coupons
You probably do not need to read this article to know that coupons are a great way to save a little bit here and there. Coupons are out there, everywhere, if you are willing to look for them. They can be found in the mail, in the paper and online. Try not to go to the store without having at least a few coupons ready to go. Make it a habit to always look through any coupons you may see too. Be aware though that a coupon is not worth using if it is going to make you deviate from your normal budget and add an extra expense. Coupons work best when used on things you normally would buy anyway.

2. Fill Up
This tip not only saves your wallet, but also your waistline. Never shop when you’re hungry. When you are hungry, everything looks appetizing. This can lead you to buy more than you normally would. In addition, it is harder to stick to your normal grocery list. You are also a lot more likely to toss in a bag of chips, cookies or other goodies to satiate that craving on the way home. Always have a good sized meal before shopping. If you do not have time for a full meal, take a snack with you.

3. Protein
One of the cheapest sources of a full stomach is protein. Protein fills you up and keeps away hunger longer. Best of all, it can be found in many cheap foods. Peanut butter, eggs and sometimes dairy products are usually very cheap and easy to prepare. These can be heaven-sent if you have hungry teenagers around your house. If you find a sale on a food high in protein, consider stocking up.

4. Planning
Make a shopping list and stick to it. The worst thing you can do is go into a store with no real idea of what you want or need. This tip is a given for many people, but should be used by many more. Stick a sheet of paper to the fridge and write down things you need throughout the week. When the time comes to restock the food supply, take that list and stick to it religiously. If you come to an item that really speaks to you, ask yourself if you want it or if you need it. If you only want it, put it back and move on. Otherwise, write it on your list for future references and purchase it.

5. Don’t Doddle
Spending more time than necessary at the store will inevitably lead to more spending. If you are familiar with the grocery store you are about to go to, plan out your route before you step inside. The quicker you can get the items you need, the less time you will spend considering things you may not need. In addition, many grocery stores are laid out to make you pass impulse purchases and high ticket items at every turn. Try to avoid these and stay on your route if possible.

Jenny Lewis likes to shop, save & frequent www.termlifeinsurance.org.

People who are suffering from credit debt are, in most cases, bombarded by endless phone calls from debt collecting companies. If you are stuck in such situation and you are constantly being harassed by debt collectors every single day, you should know by now to put an end to it. A law that has been implemented several years ago called the Fair Debt Collection Practices Act is something that you should know about.

The FDCA is purposely set out to prevent debt collecting companies from acting aggressively towards you on a daily basis. The law entails specific regulations that an agent from a debt collecting company should follow and things to avoid in doing when making debt collection calls. There are a few things you can do to put an end to harassment:

1) Write your request in terminating communication to the debt collecting company

Regarded as the most effective approach among all other options, you are letting the debt collecting company know that you do not want anything to do with them nor should they do anything to you. Once the company receives your letter, they should immediately stop making calls as described by the FDCPA.

2) Reminding debt companies of the FDCPA

If a debt collector calls both your home and your workplace then it is imperative for the agent to know certain guidelines described in the FDCPA. You might end up with an agent who has broken the law in the process so paying close attention to what they do is important. You need to let the creditors know your rights under the FDCPA. Disclosing your credit debt to third parties is a major offense and you can readily sue them for damages that have been done.

3) Tell the authorities

Sometimes, debt collecting companies will just ignore you even after sending in your letter. If they continue to make calls, you can let the appropriate authorities know all about it so that legal action can be enforced. A smart move is by calling the FTC (Federal Trade Commission), a governing body that has enacted the FDCPA. You should be prepared to collect information of the debt company and collecting agent who has been harassing you.

Andrew Wise writes for ExactCredit.com, your source for credit advice.

No matter which type of bankruptcy you choose to file, you’ll have to undergo credit counseling within the six months prior to filing. This is to ensure that you have no other less drastic options. Debtors filing under Chapter 7 or Chapter 13 also need to complete a debtor education workshop before the bankruptcy is finalized, which takes about two hours and can be completed online or over the phone. This will help you stay on the right track and avoid falling back into debt. You also cannot file if you’ve declared bankruptcy within the last six to eight years, depending on the type you filed.

Requirements for Chapter 7

Under Chapter 7 bankruptcy, any valuable assets are liquidated. They are sold by a court-appointed trustee to help pay your creditors. You must have at least $7,025 in debt to be eligible for this type of bankruptcy. You must also show that you are not in the financial position to be able to repay your debts. Most people who file under Chapter 7 have a current monthly income less than or equal to the median income of similar families in their area. If your income is greater than the median, you must additionally take a “means test” to find out if you qualify for bankruptcy under Chapter 7. This is another measure of your financial capabilities which looks at your income over a longer period of time. If you don’t qualify for Chapter 7, you’re probably a candidate for bankruptcy under Chapter 13.

Requirements for Chapter 13

In Chapter 13 bankruptcy, you work towards paying off all or most of your debts in a court-approved plan lasting three to five years. After you complete the plan, any remaining debts are erased. Because you’re given only a finite amount of time to repay debts, maximum debt amounts are imposed. To be eligible for bankruptcy under Chapter 13, you can have no more than $360,475 in unsecured debts like credit card debts and no more than $1,081,400 in secured debts like taxes and mortgages.

It’s best to speak with a credit counselor before you make any decisions. He or she can guide you towards the best financial option for you, which may not be bankruptcy at all.

Did you know that you can save up to 60% electricity by boiling water in a microwave rather than an electric stove? Even when using an electric stove, make sure to use pots and pans that have a broader base so that they cover the element fully. This ensures that a lot of heat is not wasted and water is boiled efficiently. For instance a pan with a 6-inch bottom on an 8-inch element leads to approximately 40% of the energy being wasted.

Another household appliance that uses up a lot of power due to negligent handling is the refrigerator. Make sure that the fridge is kept as full as possible always. However as airflow is equally important, leave a 1-inch open space on each side of the interior. Don’t forget to turn down the thermostat several degrees during the winter months as it helps save a lot of electricity. Instead of putting the fridge against the wall, leave an open space of a few inches from the wall, again for better air exchange.

Plenty of water gets wasted because of leaky taps and toilets that have faulty flushes. The amount of water that gets wasted in a day is substantial. Get a plumber take a look at the taps regularly and have the leaky ones fixed. It would be a great idea to get a do it yourself plumber’s kit and try having the leaks fixed yourself. Rain water harvesting using a rain barrel is another area where a lot of water can be saved and used to water the lawn and kitchen garden which not only saves water but saves a trip to the grocery store for buying vegetables.

The garden is a great place where you can pinch a lot of pennies. You don’t always have to buy plants from a nursery. Exchange the ones you have for ones thaytyou don’t have, save seeds and plant them and have your own nursery. Instead of spending a lot of money on fertilizers, go organic and make your own compost. All you need to do is to dig a small pit and start filling it with shredded leaves and weeds; cover them with dirt and allow it to become good manure. You are not only being eco- friendly, but are also saving money in the process. Practice drip irrigation that is great at letting the plants have optimum amount of water without much wastage. The yield also will be surprisingly better, if you notice.

About the Author

Eve Zaremba is a blogger who loves writing about Entertainment TV Reviews, Personal Finance Advice, and tips on finding amazing home services deals. Her topics include ways to save money for Families, College Students, and Single Professionals.

Anyone facing unemployment in a harsh economic climate had best consider going abroad as the best option to find a job. With news articles predicting higher unemployment figures before the summer sets in, now may be a good time to pack a bag and get ready to move the job hunt to overseas markets.

Finding A Vacancy

Let’s see how to go about job hunting for an overseas position. With the Internet at our fingertips, hunting for jobs abroad becomes relatively easy. Here are some ideas that may prove useful:

The European Commission has a job mobility portal ‘Eures’ that allows job seekers to scan the job offers from all over Europe through the web.

One thing to avoid is developing a passion for living somewhere sunny; get rid of the notion that going abroad means sunny blue skies. Europe’s south where the sun shines brightest is not exactly an economically healthy option. Northern Europe, it would appear, has more jobs to offer. Another reason for people to head north is the language. In the north, it is a proven fact that the people are more competent in the English language. Northern Europe is probably the best place to head if English is the only language spoken.

Use Social Media!

Anyone using social media networking sites such as the ubiquitous Facebook may want to put out the good word. It can’t hurt to spread the word to friends and acquaintances. It is also recommended that people looking for jobs register on websites that connect people in a particular employment field such as accounting or human resources.

There are numerous job portals online where overseas employment opportunities are listed. Newspapers may be old hat, but still worth the effort of scanning through them. Conduct research on countries that have a high demand for the individual-specific qualifications that make it easier to find a job.

Once the countries where the demand is high for a specific qualification or skill, find companies located in that country, log on to their websites and send in applications to the human resources department.

European Union institutions have a decent representation within the EU, but tend to be strict on language requirements. At least one European language, apart from the native language, is generally the norm. For this reason, it is important to identify individual strengths and weakness before applying for jobs. Selection of jobs that weigh heavily on the positives will increase the success rate.

Try, Try and Try Again

Jobs are available; it just requires a great deal of persistent effort on the part of the job seeker to keep sending out applications regardless of rejections.

This article was written in association with Office Angels, leading recruiters of personal assistants in the UK

The following are five ways to get out of debt quickly -

1. Make a list of your debts – Sometimes people are burdened with so many debts that they aren’t really sure of the exact amount which they might be owing to others. One should always be able to chalk out a comprehensive list of one’s debts and this is better when it is done in the descending order of interest rate. In this way, you will be able to prioritize the debts that are at the top since the sooner you repay them, the more you will be able to save on your debt interest.
2. Find out how much more you can afford to pay – If you plan to play it safe by repaying only the minimum on your debts then you will be in for a long haul and in the process you will be paying truckloads of money as interest. Thus, dig deeper into your pockets and make use of whatever extra funds you can lay your hands on to pay off the debts you are tied down with. Even if it means only an extra USD 50 a month or so, you will still be able to get out of your debt faster. Employing money saving tactics would also help you squeeze out more money for repaying your debts.
3. Set a budget for yourself – It is amazing how things written down on paper or anywhere else tend to stay on your mind rather than just making a mental note. Therefore, do things the old school way and set a budget for yourself each month. Don’t allow extras for the “what ifs” and this would go a long way to save more money with which you can repay your debts. Also avoid the usage of your credit cards to whatever extent possible.
4. Try to reduce the interest rates of your debts – A lot of times, the interest rates for debts can go as high as 30%. Therefore if you have such interest then you will only be paying off the interest rather than chipping away at the debt’s principal amount. So, it is high time you have a word with your creditors and try to negotiate with them to bring the interest rates down. A representative will be handy in this case.
5. Bringing in extra money for yourself – If you want to get out of debt quickly then you should come up with ways to earn extra money. You can consider working overtime if that helps otherwise you can go for part time job like dog walking, freelance working, content writing, babysitting and so on for earning extra money for use in paying off the debt.

Sara Muler from loansforpeoplewithverybadcredit.net
provided us with this free finance content.

When applying for any kind of loan you need to remember a few things. Your credit rating, debt versus income ratio and employment status are very important. With mortgage loans a few more things come into play like down payments, documentation and what you can and can’t afford.

Your credit rating is very important when applying to any loan. The lower it is the less likely you will be approved for a loan. With mortgages it is no different. Keeping your credit score at a decent number is a key factor in getting approved for a lower interest mortgage. There is no reason to despair if, for some reason, your score took a hit due to circumstances out of your realm of control. As long as you are honest with your loan officer your mortgage application should go smoothly. If you are struggling with your credit score your loan officer can provide you ways to boost your credit score quickly.

Your debt versus income ratio and your employment status are also factors that can make or break a mortgage application. It’ll be hard to be approved for a mortgage if you are already in a lot of debt. Also, you will have to prove that you are able to make your mortgage payments on your current salary. Lenders want to make sure you can pay all your bills. Remember, banks want to approve you for a mortgage but only if you can prove that you can pay them back with minimal drama. With large loans like mortgages the bank can foreclose on the very property you received the mortgage for to make sure they get their money back.

In these post-housing bubble days, documentation has become vital in securing mortgage loans. Now you will need precise paperwork for loan officers to check your financial status. To make sure lenders are getting their money back, they want to know a lot about the people they are lending to. It is, of course, possible to be approved for a mortgage loan with little paper work but in order to position yourself for a successful mortgage application it’s better to be ready by providing lenders the exact information they’ll need to secure you a loan.

Other things you should consider are the down payment and what you can and can’t afford. The higher the down payment you make the better because that you will be paying less interest and your payments will be smaller. There is no tell-tale rule though. You are not obliged to put down 20% on a mortgage loan which has become a myth in the mortgage biz. Usually you can put down way less than that and still get a comfortable interest rate. Keeping in mind what you can afford to pay is important. Don’t get stuck with a down payment or monthly payments you can’t afford.

Keeping these things in mind will help you get prepared for an appointment with a mortgage loan officer and hopefully will make the whole process a comfortable one.

Being frugal does not mean life has to be boring.

Swap Out Money Wasters

There are lots of things that chew up your money but can easily be eliminated or swapped out to save money. Here are a few examples of what you can save in a year.

* Cut out the morning coffee – $720 saving per year ($3 a day, 5 days per week, 48 weeks per year)

* Take your own lunch to work – $1,200 saving per year (saving $5 a day compared to eating out)

* Switch cable to on-demand TV via the web. Services such as Netflix or Hulu Premium offer huge amounts of content on demand for around $10 a month. Save around $500 a year compared to cable.

Enjoy the Free Things in Life

So many of the best things in life are free. Try enjoying free things such as the great outdoors and making the most of things you have already purchased such as board games, video games, bikes and other activities.

Focus Your Money on the Things that Matter to You

Being frugal in most areas of your life will mean you have more left over to treat yourself on the things that really matter to you while still retaining control of your finances. Think about what you enjoy the most such as travel or gadgets and save up for something you will really enjoy.

Life should be enjoyed so don’t think being frugal means being boring. There are plenty of ways to cut costs and have fun.

Graphic and tips thanks to high-interest-saving-account.com.au a savings account comparison website.