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Over the last eight months the money markets have had a battering, with higher interest, causing money to be more expensive to buy on the money markets. These extra costs then filter down to the end users, or creditees. With the world markets being so cautious, many banks have removed their risk when lending by cutting back criteria, especially in the mortgage sector. This was not always the story, with many believing credit has always been easy to get, especially in recent years. The latest figures from The Debt Counsellors online survey, shows that out 43 percent strongly agreed that credit was easy, only 9 percent said it wasn’t. But we may see a shift in this figure over the next few years, especially regarding mortgages.

The Sub Prime market is geared towards people with bad credit, but all lenders in this sector have removed many of the more, forgiving criteria they once had. This, coupled with the rise in rates, means that someone coming out of an affordable rate, after the end of a benefit period, say a 2 year fix, will find their options are limited.

Although rates have increased in the last two years, the news today of a cut, will hopefully help many mortgagees in terms of their affordability and paying debts. Today, the average mortgage in the UK is around £125,000. With the 0.25 percent decrease today an average mortgage of £125,000 will see a decrease of £312.50 per year only if the mortgage is on a tracker or variable rate.

Overall, the cut in interest rates, coupled with the previous reductions, could help those in financial ‘dire straights’. It may not be by very much but it’s certainly better that an increase.

For more information, visit debtcounsellors.co

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Sixty-one percent of the public believes the economy is now suffering through its first recession since 2001, according to a recent poll. Howard Dvorkin, CPA and founder of Consolidated Credit offers this advice to soften the blow and maybe help you come out of a recession looking like a winner.

• Pay down your credit cards.

• If you work with a company that has a staff of sales people talk with them. If sales are low and they are barely getting by then everyone’s job could be in jeopardy.

• Build an emergency fund. You should have up to six months of savings to take care of your living expenses.

• If you receive any checks or rebates from the government put that money in your emergency fund.

• Apply for unemployment benefits without hesitation if you are laid off from your job.

• If you have stocks and bonds talk with an expert to make certain that you are diversified. You should not panic and sell right away. Keep a close watch on the market and your investments.

• Don’t act hasty if the walls start crumbling around you. If you have to take money from your retirement plan, first understand the rules.

• If you can prove that you are experiencing financial hardship some 401(k) plans allow withdrawals — but you will still owe income tax on the withdrawal and, again if you are younger than 59 1/2, you will owe a 10 percent penalty.

• This may sound obvious, but don’t spend money because it makes you feel good.

• Start a new business. It’s a fact that many successful businesses were opened up during poor financial periods. If you have the right game plan and the money to do it, this may be the time to live out your life’s dream.

Ultimately, it’s important not to panic if you feel you are being financially stressed out. Work with your family to come up with new ideas on how to save money or make money and if you feel that your job is at risk don’t hesitate to start looking for new work. Call friends and old work partners; begin the networking process so you will have a new job lined up. Don’t wait for the other shoe to drop; strategize and make a commitment to adjust to anything the fluctuating market throws your way.

For more information, visit consolidatedcredit.org

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Recent studies have shown that today’s youth are piling up debt faster than ever before, complicating their current lifestyle and compromising their future financial health. Major factors in this unhealthy trend are limited financial training, the accessibility of credit cards and loans, and the scarcity of information that addresses their specific needs and situations. A recent study by Nellie Mae Corporation reported that 66 percent of undergraduate students surveyed have credit cards while their average outstanding balance was $2,169.

Recognizing this trend, YOUNG MONEY, the leading national money and lifestyle magazine for college students and young adults ages 18 to 25, has expanded its reach and financial education resources for American youth. The publication announced today that it has added a 200th college now distributing copies on their campuses nationwide, up from 110 colleges in January 2007.

With more than 800,000 readers, YOUNG MONEY has grown in popularity and service, experiencing a circulation increase of more than one hundred percent over the past five years.

For more information, visit incharge.org

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After concluding their tax preparation activities, many people will see that they are entitled to a rebate from Uncle Sam. “Whether your rebate is large or small, you are wise to determine now what you will do when that check arrives,” says Sheryl Garrett, CFP®, author of Personal Finance Workbook For Dummies® (Wiley, November 2007) and founder of the Garrett Planning Network. “Don’t fritter it away or spend it on a whim.”

On a recent teleconference, network members brainstormed 13 ways taxpayers can put this “found money” to work:

1. Put the entire amount toward funding your 2008 IRA contribution.

2. Give the money to charity and claim that amount as a tax deduction on your 2008 tax return, if you itemize using Schedule A of Form 1040.

3. Sign up with www.kiva.org and provide micro-loans to budding entrepreneurs in third-world countries.

4. Start a tax-sheltered 529 college savings plan to fund your own or children’s/grandchildren’s educations.

5. Check that you have adequate insurance coverage on the following types of policies: property and casualty, life insurance, health insurance, long-term care and disability insurance.

6. Use the rebate money to engage the services of an estate planning attorney

7. Use the money to purchase stock mutual funds at current prices.

8. If you have credit card debt, pay off as much as possible.

9. Mortgage interest rates are the lowest we’ve seen in a long time. If you have a good credit score, now might be a good time to refinance your first mortgage and/or to wrap your Home Equity Line of Credit (HELOC) debt or second mortgage into a more attractive home loan.

10. During economic slowdowns, including a recession, job losses and/or business declines are inevitable. Take a course, add to your credentials and consider how you can improve your skill set to make yourself as attractive as possible in the marketplace.

11. Schedule your annual check ups with your doctor and your dentist.

12. Schedule a financial check up for yourself. Annual trips to the dentist, the doctor – and your financial planner – are wise investments

13. Purchase a gift certificate, for a set amount of professional financial advice, for a loved one.

For more information, visit garrettplanningnetwork.com

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