Posts Tagged ‘recession’

Economic downturns are never much fun, but as Adam Smith observed over two centuries ago, these cycles of paucity and plenty are a fact of life. Though none of us can say for sure when this latest slump will reverse, there are at least sure ways of saving your money in the meantime. Here are some penny-preserving techniques tailored to our 21st-century lives:

 

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping on the Web now, not as many of us seem to have gotten into the habit of coupon-hunting online. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com offer thousands of current offers at merchants across the Net.

 

2. Use price-comparison sites like Shopping.com, Pricegrabber.com, mySimon.com, and Google Product Search to find the best deals online.

 

3. When you’re at a store, send a text message to 46645 (Google’s number) and enter the letter “f” followed by the name of the item you’re interested in. Google will reply with a text quoting the online prices. To compare prices at local stores, check out ShopLocal.com.

 

4. If you don’t already belong to one, consider joining a warehouse club such as Costco or Sam’s and buying in bulk. This can be especially helpful if you have a large family.

 

5. Buy generic instead of brand-name products. A lot of the difference is often in the marketing hoopla and not the product, anyway.

 

6. Withdraw your cash from surcharge-free ATMs, which can be found on AllpointNetwork.com and MoneyPass.com.

 

7. Buy locally-sourced food at farmer’s markets or stores that sell local produce and meat. Prices are usually lower there because the food doesn’t have to be transported very far.

 

8. Shop at dollar stores. You shouldn’t have a difficult time finding one since they’ve been popping up all over the place recently.

 

9. Purchase discount prescription drugs from online pharmacies. You’ll often end up paying considerably less than half as much for the generic pills carried by these discount prescription drug stores than you would for the same brand-name pills at brick-and-mortar pharmacies.

 

10. If your vehicle is seven years old or older and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the value of your car anyway, in which case a major collision would send your car to the junk dealer and you to the dealership.

 

11. Keep cell-phone expenses under control. Kids today love to text message, so save yourself from unexpectedly high bills by paying the flat monthly fee for unlimited text messages.

 

12. Use online classifieds to find used items. Sites like CraigsList.org and Kijiji.com are great resources for finding everything you need, from used furniture to baby gear. By buying from local sellers, you can save on shipping costs too.

 

13. Go to matinees. The matinee showing is usually more reasonably-priced than peak-time showings.

 

14. Install Power Planners (see www.energycsi.com/energysmart) to lower the electricity usage of your electrical appliances.

 

15. For your next date, plan a romantic picnic instead of going to a pricy restaurant. Pack a blanket and a cooler full of your favorite foods and you’ve got yourself a cheap rendezvous. Add some zest with a bottle of vino.

 

16. Instead of spending money on software, look for (legal) free software from websites like Download.com and SourceForge.net. Depending on how you use a given type of software, the free alternatives will often be just as good as the paid versions.

 

17. If someone in your house is a student, get the Student Price Card from SPCLive.com. It’s only $8.50 and will get the holder 10% to 15% discounts in dozens of participating stores.

 

18. Control your thermostat. Using a programmable thermostat to adjust the temperature will save energy when you’re sleeping and away. Prices range from $30 to $120, but you’ll lower your bill by 10% to 20%.

 

19. Consider quitting your health club. Less expensive options might include a gym at your work, in your building or community, or at a nearby park and recreation center.

 

20. Cut your water bill by installing low-flow showerheads and $1 toilet displacement bags.

 

21. When you eat out, choose waiter-less restaurants where you order up front and pick up your own food. You’ll avoid paying a tip, and these types of restaurants often have more reasonable prices as well.

 

22. Buy pre-owned books. Major online book retailers offer a “buy it used” option, where you can often find books in like-new condition at substantial discounts.

 

23. Have a friend or family member cut your hair. This works best for men and boys who like to keep their hair short and uninvolved, because someone with no experience can do as good a job as a barber using a set of clippers. Professional clippers are sold in department stores for less than the expense of some high-end haircuts.

 

24. Swap babysitting responsibilities with neighbors. Instead of paying a teenager to watch TV, send your kids to the neighbors’ place on your nights out and take their kids into your house for a few hours when they need some couple-time alone.

 

25. Replace your incandescent lightbulbs with CFLs (compact fluorescent lightbulbs). They use about 1/4 as much electricity, last about 10 times longer, and can now often be found on sale for only about $1 each if you shop around.

 

26. Use financial-planning software such as Quicken or the free software from Rudder.com.

 

27. Swap one-time-use items (such as books) with friends once you’re finished using them. If you each have items you’ll never use again but that the other wants, you can save yourselves the expense of buying them new.

 

28. Use public transportation or a bike to get to work, if possible.

 

 

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

Economic downturns aren’t ever especially fun, but as Adam Smith noted centuries ago, these cycles of paucity and plenty are a fact of life. Although no one can say for sure when this latest slump will reverse, there are at least sure ways of stretching your cash in the meantime. Here are some penny-preserving ideas tailored to our 21st-century lives:

 

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping on the Web now, not as many of us seem to have learned to coupon-hunt online. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com list thousands of current offers at retailers across the Web.

 

2. Use price-comparison websites like Pricegrabber.com, Shopping.com, mySimon.com, and Google Product Search to find the best deals online.

 

3. When you’re at a store, send a text message to 46645 (Google’s number) and enter the letter “f” followed by the name of the product you’re looking at. Google will reply with a message quoting the online prices. To compare prices at stores in your area, visit ShopLocal.com.

 

4. If you don’t already belong to one, consider joining a warehouse club like Costco or Sam’s and buying things in bulk. This can be especially helpful if you have a sizeable family.

 

5. Buy generic instead of brand-name products. A lot of the difference is often in the marketing ballyhoo and not the product itself, anyway.

 

6. Withdraw your money from surcharge-free ATMs, which can be found on AllpointNetwork.com and MoneyPass.com.

 

7. Buy locally-raised food at farmer’s markets or stores that sell local produce. Prices there are often lower since the food doesn’t have to be transported very far.

 

8. Shop at dollar stores. You should have an easy time finding one nearby since they’ve been popping up all over the place recently.

 

9. Purchase discount prescription drugs from online pharmacies. You’ll often end up paying well under half as much for the generic medications available at these discount prescription drug stores than you would for the same brand-name pills at brick-and-mortar pharmacies.

 

10. If your car is seven or more years old and/or worth $2,500 or less, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the value of your vehicle anyway, in which case a major collision would send your car to the junk dealer and you to the dealership.

 

11. Keep cell-phone costs under control. Kids today love to text message, so save yourself from unexpected high bills by paying the flat monthly fee for unlimited text messaging.

 

12. Use online classifieds to buy used items. Sites like CraigsList.org and Kijiji.com are excellent resources for finding everything you need, from used furniture to baby gear. By buying from local sellers, you can save on shipping costs as well.

 

13. Go to matinees. Matinee showings are usually more reasonably-priced than peak-time showings.

 

14. Install Power Planners (see www.energycsi.com/energysmart) to lower the electricity usage of your electrical appliances.

 

15. For your next date, plan a romantic picnic instead of going to a pricy restaurant. Pack a blanket and a cooler full of your favorite foods and you’ve got yourself an inexpensive rendezvous. Spice it up a little with a bottle of vino.

 

16. Instead of spending money on software, look for (legal) free software from websites like Download.com and SourceForge.net. Depending on how you use a given type of application, the free alternatives will often be just as good as the paid versions.

 

17. If someone in your house is a student, get the Student Price Card from SPCLive.com. It’s only $8.50 and will get the holder 10% to 15% off in dozens of participating stores.

 

18. Control your thermostat. Using a programmable thermostat to adjust the temperature will reduce energy usage when you’re sleeping and away. Prices range from $30 to $120, but you’ll cut your bill by 10% to 20%.

 

19. Consider quitting your health club. Less expensive options might include a gym at your work, in your building or community, or at a nearby park and recreation center.

 

20. Cut your water bill by installing low-flow showerheads and $1 toilet displacement bags.

 

21. When you eat out, choose waiter-less restaurants where you order at the cash register and pick up your own food. You’ll avoid having to pay a tip, and these types of restaurants often have more reasonable prices as well.

 

22. Buy pre-owned books. Major online book retailers offer a “buy it used” option, where you will often find books in like-new condition at substantial discounts.

 

23. Have a friend or family member cut your hair. This works best for men and boys who like to keep their hair short and simple, because someone without any experience can do as good a job as a barber using a set of clippers. Professional clippers are available in department stores for less than the expense of some high-end haircuts.

 

24. Swap babysitting responsibilities with other families. Instead of paying a teenager to surf the Net, send the kids to the neighbors’ place on your nights out and take their kids into your place for a few hours when they need some couple-time alone.

 

25. Replace your incandescent lightbulbs with CFLs (compact fluorescent lightbulbs). They use about 1/4 as much electricity, last about 10 times longer, and can now often be found on sale for about $1 each if you shop around.

 

26. Use personal-management software such as Quicken or the free offerings from Rudder.com.

 

27. Swap one-time-use items (such as books) with friends once you’re done with them. If you each have items you’ll never use again but that the other wants, you can save yourselves the cost of buying them new.

 

28. Use public transportation or a bike to get to work, if feasible.

 

29. When you need to upgrade your electronic gadgets, trade the old ones in for cash at sites such as Gazelle.com and CellforCash.com.

 

 

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

 

Economic downturns are never especially fun, but as Adam Smith noted over two centuries ago, these cycles of paucity and plenty are a fact of life. Although none of us can say for sure when this latest slump will reverse, there are at least sure ways of stretching your cash in the meantime. Here are some penny-preserving techniques tailored to our 21st-century lives:

 

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping on the Internet now, not as many of us seem to have gotten into the habit of coupon-hunting online. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com offer thousands of current offers at merchants all across the Web.

 

2. Use price-comparison sites such as Shopping.com, Pricegrabber.com, mySimon.com, and Google Product Search to find the best deals online.

 

3. When you’re out at a brick-and-mortar store, send a text message to 46645 (Google’s text number) and enter the letter “f” followed by the name of the item you’re looking at. Google will reply with a text message quoting the online prices. To compare prices at local stores, check out ShopLocal.com.

 

4. If you don’t already belong to one, consider joining a warehouse club like Costco or Sam’s and buying things in bulk. This can be especially helpful if you have a sizable family.

 

5. Buy generic instead of brand-name products. A lot of the difference is usually in the marketing hoopla and not the product itself, anyway.

 

6. Withdraw your cash from surcharge-free ATMs, which can be located on AllpointNetwork.com and MoneyPass.com.

 

7. Buy locally-raised food at farmer’s markets or stores that sell local produce. Prices are often lower there because the food doesn’t have to be transported very far.

 

8. Shop at dollar stores. You should have an easy time finding them nearby since they’ve been turning up all over the place recently.

 

9. Purchase discount prescription drugs at online pharmacies. You’ll often end up paying well under half as much for the generic medications stocked by these discount prescription drug stores than you would for the same brand-name pills at brick-and-mortar pharmacies.

 

10. If your car is seven or more years old and/or worth less than $2,500, consider dropping comprehensive and collision from your insurance.  Your deductible may be closing in on the worth of your car anyway, in which case a major collision would send your car to the junk dealer and you to the dealership.

 

11. Keep cell-phone costs under control. Today’s kids love to text message, so save yourself from unexpected high bills by paying the flat monthly fee for unlimited text messaging.

 

12. Use online classifieds to find used items. Sites like CraigsList.org and Kijiji.com are excellent resources for finding everything you need, from used furniture to baby gear. By buying from locals, you can save on shipping costs as well.

 

13. Go to matinees. The matinee showing is often more reasonably-priced than peak-time showings.

 

14. Install Power Planners (see www.energycsi.com/energysmart) to lower the energy consumption of your electrical appliances.

 

15. For your next date, plan a romantic picnic instead of going to a pricy restaurant. Pack a blanket and a cooler full of your favorite foods and you’ve got yourself an inexpensive rendezvous. Spice it up a little with a bottle of vino.

 

16. Instead of spending money on software, look for (legal) free software from sites like Download.com and SourceForge.net. Depending on how you use a given type of application, the free alternatives will frequently be just as good as the commercial versions.

 

17. If anyone in your house is a student, pick up the Student Price Card from SPCLive.com. It’s only $8.50 and will get the holder 10% to 15% off in dozens of participating stores.

 

18. Control your thermostat. Using a programmable thermostat to adjust the temperature will save energy when you’re sleeping and away. Prices range from $30 to $120, but you’ll cut your bill by 10% to 20%.

 

19. Consider leaving your health club. More economical options may include a gym at your work, in your building or community, or at a nearby park and recreation center.

 

20. Reduce your water bill by installing low-flow showerheads and $1 toilet displacement bags.

 

21. When you eat out, choose waiter-less restaurants where you order up front and pick up your own food. You’ll avoid having to pay a tip, and these types of restaurants often have more reasonable prices as well.

 

22. Buy pre-owned books. Major online book dealers offer a “buy it used” option, where you will often find books in like-new condition at substantial markdowns.

 

23. Have a friend or family member cut your hair. This works best for men and boys who like to keep their hair short and simple, because someone with no experience can do as good a job as a barber using a set of clippers. Professional clippers can be purchased in department stores for less than the expense of some high-end haircuts.

 

24. Swap babysitting responsibilities with other families. Instead of paying a teenager to do homework, send the kids to the neighbors’ place on your nights out and take their kids into your place for a few hours when they need some couple-time alone.

 

25. Replace your incandescent light bulbs with CFLs (compact fluorescent light bulbs). They use about 1/4 as much energy, last about 10 times longer, and can now often be found on sale for only $1 each if you shop around.

 

26. Use financial-planning software like Quicken or the free offerings at Rudder.com.

 

27. Exchange one-time-use items (such as books) with friends once you’re finished using them. If you each have items you’ll never use again but that the other wants, you can save yourselves the expense of buying them new.

 

28. Use public transportation or a bike to get to work, if possible.

 

29. When you need to upgrade your electronic gadgets, trade the old ones in for money at sites like Gazelle.com and CellforCash.com.

 

30. Don’t shop for groceries on an empty stomach. If you do, you’re likely to purchase more than you actually need.

 

 

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

 

Economic downturns are never especially fun, but as Adam Smith noted over two centuries ago, these cycles of paucity and plenty are a fact of life. Although none of us can say for sure when this most recent slump will reverse, there are at least sure ways of sparing your wallet in the meantime. Here are some penny-preserving techniques tailored to our 21st-century lives:

 

1. Plenty of people are in the habit of cutting out paper coupons, but even though many of us do part of our shopping on the Web now, not as many of us seem to have gotten into the habit of coupon-hunting on the Internet. Sites such as CouponCabin.com, CouponMountain.com, and DealofDay.com offer thousands of current offers at retailers across the Web.

 

2. Use price-comparison websites such as Shopping.com, Pricegrabber.com, Google Product Search, and mySimon.com to find the best deals online.

 

3. When you’re at a store, send a text message to 46645 (Google’s text number) and enter the letter “f” and then the name of the product you’re shopping for. Google will reply with a text message quoting the online prices. To compare prices at stores near you, go to ShopLocal.com.

 

4. If you don’t already belong to one, consider joining a warehouse club such as Costco or Sam’s Club and buying things in bulk. This can be especially helpful if you have a sizeable family.

 

5. Buy generic instead of brand-name products. A lot of the difference is often in the marketing hype and not the products themselves, anyway.

 

6. Withdraw your money from surcharge-free ATMs, which can be found on AllpointNetwork.com and MoneyPass.com.

 

7. Buy locally-grown food at farmer’s markets or stores that sell local produce. Prices there are often lower since the food doesn’t have to be transported far.

 

8. Shop at dollar stores. You shouldn’t have a difficult time finding one nearby since they’ve been popping up all over the place in the recent past.

 

9. Purchase discount prescription drugs from online pharmacies. You’ll often end up paying considerably less than half as much for the generic pills stocked by these discount prescription drug stores than you would for the same brand-name pills at brick-and-mortar pharmacies.

 

10. If your car is seven years old or older and/or worth $2,500 or less, consider dropping comprehensive and collision from your insurance.  Your deductible may be approaching the worth of your vehicle anyway, in which case a major collision would send your car to the junk dealer and you to the dealership.

 

 

All rights reserved. Article may be reprinted as long as content remains unchanged and links remain active.

If you’ve been worried that you will be unable to survive the current economic times you can stop worrying now. It doesn’t matter what your current situation is, there are many steps that you can take right now to help you survive these tough economic times. Below are some very helpful and simple ideas to help you improve your current financial situation. Every tip or idea may not apply to you. However there are enough thoughts and ideas for you to find something useful. Keep reading below to find out how to make the most out of these difficult economic times.

In general credit and fast cash from the banks is getting harder to come by for a large portion of the population. This credit crunch means that people with tight budgets are very close to financial ruin. While it’s easy to focus on only the negative aspects of the recession there are also many steps you can take to survive and improve your financial outlook during the economic recession. Here are some simple steps to follow.

BE A TEAM PLAYER AT WORK

No one wants to lose a job. However, many people are losing their income during these difficult financial times. So do what you should to make sure you won’t be the next one to lose a job. Your attendance record should be excellent and you should arrive on time. Take the initiative to take on additional work and projects. Stay away from confrontations with peers and supervisors as they can escalate under stress. It may not be clear, but many people rather be “right” than to stay employed. It is not worth it, and during this recession people are competing for the same limited jobs.

BE WILLING TO SHARE ABOUT YOUR FINANCIAL SITUATION

No one likes to admit they are facing financial problems, but the alternative may be worse. Sit down and do a thorough evaluation of your current financial situation. After you are certain about where you are at financially share this with family and friends. Let them know you are looking for help and not money and the conversation will go better. Talking over your problems will help you relieve stress, and the perspective of others may provide solutions that you have not seen yet.

AVOID ANY NEW LONG TERM DEBT

One thing to try and remember is that these hard financial times won’t last forever. Even the great depression eventually came to an end. Now is the time to avoid debt that is going to put a strain your budget. Obviously, at time we can’t avoid some short term debt, but avoid it as much as possible. So now it’s probably a good time to wait for the flat screen TV that could take 5 years or more to pay off.

Even though the banks aren’t lending in the way that they were in the past, however if you follow the steps above they can help you through this tough time. Under the current economic conditions people are much less willing to put emergency expenditure on to credit cards and are instead looking for a more flexible and short-term way to manage the occasional emergency need for cash.

Cash advance loans are short-term loans and are repayable generally within a couple of weeks, more and more people are using them to handle those inevitable emergencies which strike us all from time to time. People are able to borrow from $100-$1500 for a short time using this fast and flexible method. Since these loans are available today online, these easy budgeting tools are providing much-needed flexibility and access to credit for many people.

 

The UK economy has suffered more than most as a result of the global financial crisis and has affected every one of us in one way or another. Unemployment recently hit 1.92 million between September and November 2008 – the highest level since 1997.

For those unfortunate enough to have lost their jobs, there are a number of measures that can be taken to put you in the best position both financially, and in terms of employability.

Losing your job can be extremely distressing, but it is important not to panic.

The first thing you should do is to make a visit to your local job centre. As well as increasing your chances of finding a job, this will also help you to find out exactly what benefits you’re entitled to.

If you require any kind of technical or legal advice, make an appointment with your local Citizen Advice Bureau.

You may be offered redundancy counselling, which is designed to help you deal with this change, as well as offering support with getting your life back on track. This could be anything from providing you with financial advice, to helping you to make the first steps to find a new job.

You may think you can deal with the loss of a job on your own, but the fact is that doing anything to help getting yourself back on track is not only a step in the right direction, but also looks good on you and can help when you require benefits etc.

You could be entitled to a redundancy package. It is important to become aware of where you stand as an employee, so ensure you read through and understand your employment contract. By law, employers must give employees notice before mading them redundant. This tends to be at least 1 week for every year of service, up to a maximum of 12 weeks.

If you completed two or more years service for the company that made you redundant, you qualify  for a statutory redundancy payment, which can be calculated by half a weeks pay per year of service for those aged between 18 and 21, a full week between 22 and 41, and anyone aged 42 and over is entitled to 1.5 weeks per year of employment, to a maximum of 20 years. Unfortunately for high earners, the weekly payment has been capped at £350.

Beyond this statutory pay, some firms offer additional packages to further compensate staff they have to let go. This is usually calculated by multiplying one months salary by the number of years service completed, with the first £30,000 tax free. Anything above this amount is subject to your tax band, so anyone that earns below £34,800 will be on the lower rate of 20%, and anyone above this amount will be on the higher tax band of 40%.

If you earn more than £34,800, there are certain measures you can follow to ensure you don't pay more tax than you need to. Ask your company to hold the payment back until they have issued you with your P45 as this will mean that you will only have to pay 20% of the remaining payout.

If the payment is added to you last pay check, 40% will be deducted at source. The remaining tax is generally paid in the following years tax return.

You may find it useful to consider negotiating with your company allowing you to put yourself in the best possible financial position. For example, you might want to consider swapping any owed holiday together with your notice period for a cash payment.

Think about depositing your new found savings into a pension scheme

You could avoid having to pay any tax on any surplus by paying your payment straight into your pension. Each year, individuals are given the opportunity to deposit up to the equivalent of a years salary into their pension scheme, allowing them to earn tax free interest.

Depending on your situation, this may be a very appealing option, as those over the age of 49 can make lump sum withdrawals of up to 25% of their pension without having to pay any tax. This is definitely worth considering if you are over the age of 50.

NOTE - It is worth noting that after April 2010, you will be unable to qualify for the 25% tax free sum until you are over the age of 55.

For younger individuals, this may not be the best option, as it would involve locking your money away for many years.

If you took out unemployment insurance, make it your priority to chase up your provider and find out exactly what you are entitled to.

For homeowners, redundancy can be a chilling prospect. The last few months has seen a jump in repossessions and people falling into difficulty repaying  mortgages. You may wish to consider taking out insurance to cover your mortgage should the worst happen. Ensure you understand what the insurance offers, as many providers have tightened their conditions due to the current economic climate.

To qualify for unemployment insurance, employees must not have been informed of any job cuts or voluntary redundancies, and you will not be covered if you're made redundant within 120 to 190 days of taking out the policy (depending on your provider).   

Also, check your existing insurance policies, as you may be surprised at how many products also cover redundancy.

If you find you are facing problems keeping up with mortgage repayments, the first thing you should do is contact your mortgage company. This is extremely important, as if the worst were to happen, the fact that you didn't inform them of your issues could cause you big problems later on.

Several lenders currently offering between 3 and 6 month payment deferrals based on your current financial situation. Again, being able to prove that you are actively looking for a job will work in your favour.

Once your payment comes through, you need to know what to do with it, and for many this means finding the best savings option. Earlier we spoke of adding the funds to your pension, but for those who are not in a good position to lock it away for a number of years should definitely consider fixed rate bonds and ISA's.

UK Price Comparison website Which4U – Compare Credit Cards, Savings Accounts, Fixed Rate Bonds, Bank Accounts, ISAs, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals

Right now here in the USA we are trying to combat a nightmare of a recession and regain financial stability.  Things have been going so adversely over the past couple of years for countless numbers of American families and to be quite honest it dosen’t seem to be letting up anytime soon.  One of the biggest issues that many people are finding themselves facing right now is trying to pay down a heavy load of unsecured credit card debt.  You tack credit card debt on top of high unemployment and perhaps even foreclosure and you can gather a pretty good idea of how dire things have gotten for many people.  Escaping the horrors of debt would be a great breakthrough for so many and thankfully there are credit card debt reduction services available to consumers who have found themselves in this very precarious financial position.  

What millions think of when it comes to credit card debt reduction is to get a debt consolidation loan from the equity in their property.  Before doing this option one must consider the risk assumed.  For starters with the current economic condition the vast majority of consumers would not even qualify for such a move right now. But for consumers who can obtain a debt consolidation loan they must comprehend the risk they are assuming.  What actually takes place is a debt transformation, the debtors turns their low risk unsecured credit card debt into a higher risk debt tied to their house.  If you cannot continue to make the payments on the loan you risk losing your home.  And the stats show that over half of the people who obtain debt consolidation loans end up back where they were with credit card debt within five years or less; thus placing people into a very compromising position.

There is however one method of debt reduction that is greatly advantageous people during this recession and that is debt settlement.  With debt settlement people can save income on what they owe and decrease their balances.  Many debtors wind up saving close to if not more than half of what they currently owe to the banks.  Additionally with debt settlement people find themselves getting out of debt in just a couple of years.  So for all those people who are really hurting from the recession and need to get rid of debt rapidly, this method of debt settlement is probably their best option.