Financial Newsletter -- July 2009

The year is now half over and unfortunately we are not seeing much in the way of economic recovery.  While the stimulus package and government bail-outs have helped some big businesses, it hasn't done a whole lot to help the average American who is still struggling to make ends meet as unemployment rises and property values and stocks sink.

But don't despair, it's not all bad.  Certain indexes indicate that things might be on the brink of turning around.  In Southern California where the housing market first collapsed, there were signs this spring that in some price ranges, housing prices had stabilized and with low interest rates, homes were selling at a decent rate.  Another indicator is that GDP (Gross Domestic Product) may be on the rise (ever so slightly) for the 2nd half of 2009.

Bankruptcy on the rise

As the country, states, and individuals continue to grapple with the economic down-turn, more and more Americans are finding themselves with unmanageable debt.  A recent report on bloomberg.com said that bankruptcy filings in the first half of 2009 were up 36.5% over the same period a year ago and they expect another 1.4 million filings before the end of the year.  As a last resort, more and more Americans are turning to the courts but for most, debt settlement is a better alternative.  If only they knew...

Changes coming for Credit Cards

In May, Congress passed the Credit Card Accountability, Responsibility and Disclosure Act to protect consumers from large interest rate increases, spiraling fees, and changing terms.  Most of the changes do not take effect until February 22, 2010 but we are now finding out that many of the regulations about changing interest rates only apply to credit cards with fixed rates; not variable.  As a result, the credit card companies are scrambling to change all of their fixed rate cards into variable rates so that the new laws won't apply to them.

If you have credit cards with low fixed rates, you could be headed for trouble as the credit card companies don't want to lose the flexibility they have to raise your rates at any time.

 New Program Coming Soon

We are pleased to announce that in the next few weeks we will be offering a new debt management program to further broaden the spectrum of financial solutions that we have available.  Since all of our clients are unique, we believe their solution is too.  We will have more details on the program very soon but if you want to learn more, don't hesitate to let us know. 

About First Rate

At First Rate, we are committed to providing financial solutions to meet the individual needs of our customers.  With years of experience, we can offer you loans, debt settlement, loan modifications, and most importantly personalized, expert financial advice.  Call today for a free consultation or visit us on the web at www.firstratedebtsolutions.com.