Where is the economy going?

This is the question on everyone’s mind today.  We’ve been in a decline for almost 2 years and there are a few signs of some recovery but not really enough to say we’re headed back in the right direction.  Here are a few things you should be watching:

1. The new higher loan limits and the lower interest rates earlier this year seem to be helping to boost the lending and real estate market a little bit.
2. The huge government stimulus package has helped consumer spending.  By putting money into people’s pockets, they are in turn eating out and spending more than they would have been able to which keeps businesses in business.
3. There are predictions that there will be positive GDP growth in the second half of the year which is typically a sign that the economy is improving.
4. That growth is predicted to be ever so slight which may be good as it will not send any type of spike in interest rates.
5. Job losses are expected to continue to rise in the second half of 2009 which will most likely offset any other positives helping in the recovery.
6. Mortgage foreclosures and tough lending guidelines will keep housing prices low for at least another year or so.
7. Any changes in the housing market will be good indicators that things may finally be on the “up” swing.

There is some moderate hope that 2010 will show some stability as equilibrium pricing for houses and the unemployment rate stabilizes.  Until those two things “hit bottom” and start to turn, it’s going to be hard for other aspects of the economy to follow along.  One important thing will be for the government (and the American people) to stop borrowing.  The increased debt will only make it harder for us to recover when the time comes.  We all need to re-evaluate our financial situations and make sure that we are looking out for the future.

Now is a good time to get your financial house in order.  Getting out of debt and positioning yourself for the recovery is the best thing you can do for yourself.  Take a moment to speak with one of our trained consultants to find out what you can do to get out of debt.