Category: Debt Management

Americans are sick of consolidating debt and want to change their financial ways, but unsure of how exactly to do so, according to a new survey from a financial advice company.

According to the Tigrent 2009 Financial Independence Survey, 61 percent of Americans said they were not comfortable with their current financial situation.

However, many more said they would like to make changes to fix their situation, as about 80 percent of Americans said they would be "ready and willing to make sacrifices in the short-term in order to become financially independent in the long-run." Additionally, 72 percent said they would go so far as reinvent themselves in order to increase their earning power.

When asked why they had not made the financial moves they desired to, most reference their lack of monetary education. Fifty-five percent said they had "insufficient" knowledge about investing, while 47 percent said they didn’t have the time to learn what was needed to change their ways.

Tigrent CEO Charles M. Peck said that while the survey demonstrated a willingness to change so their monetary status improved, Americans needed to make it a point to learn more about their finances.

"Today, it is understood that we all have to be more resourceful about our own wealth intelligence, and the goal should be a fuller life, not just a full-time job," he said.

A new report by the Obama administration estimating that the $787 billion stimulus bill has either created or saved 650,000 jobs this year will come as good news to those in consumer debt counseling and are looking for work.

According to the White House report, the positive results were culled from statements submitted by "tens of thousands of state and local governments, private companies, colleges and universities and community organizations across the country" on how their stimulus funding had been spent through September 30.

Altogether, their findings showed that at least 650,000 jobs had been created or saved so far, and that many more were on the horizon.

"We’re solidly on track to create or save 3.5 million jobs by the time this program winds down," Jared Bernstein, an economist for the Obama administration told CNN. "There’s a lot more ammunition in that Recovery Act. The stimulus package is absolutely working, both in [gross domestic product] terms and in terms of saving or creating jobs."

However, a report from the Associated Press casts doubt on the White House findings, saying that it had overstated the amount of jobs saved by the stimulus by "thousands." The Republican National Committee also took issue with the White House report, questioning what the true definition of a "saved job" was, according to USA Today.

The move by the retail giant may stand to benefit those who have to worry about high funeral costs for a loved one while also dealing with debt counseling.

Following the announcement, the website for the retail store posted 14 different caskets ranging from the $895 White Haven Steel Casket to the $2,899 Sienna Bronze model. Additionally, a number of urns were also posted for sale on the site, with the most expensive one topping out at $242.50.

"Several online retailers offer this category on their sites," said WalMart.com spokesman Ravi Jariwala of the casket and urn sales, according to the Associated Press. "We are simply conducting a limited beta test to understand customer response."

While the prices for caskets sold at a funeral home can be much more expensive, sometimes costing in excess of $5,000, National Funeral Home Directors Association president Pat Lynch felt that consumers would not be deterred by high costs in order to get the "human contact" of a funeral home, the AP reported.

The funeral service industry currently brings in about $11 billion in revenue every year with the current U.S. death rate at 8.0 per thousand, according to Reuters. However, the industry may see an increase as the death rate is expected to rise to 9.3 per thousand by 2020.

For those in debt counseling who want to look for clothing at cheap prices without having to venture out to a thrift store, ShopGoodwill.com gives consumers who are short on cash a chance to look for deals from their computer.

The website, which is run by Goodwill Services charity, collects items from the 166 independent Goodwill agencies across the country and offers more than 30,000 products online at the same discounted prices.

Since its launch 10 years ago, it has posted more than 5 million different items and brought in more than $75 million in funding, which Goodwill uses to fund job training courses for those who may have a difficulty finding work.

"The auction items all come from one source with an internationally respected brand name – Goodwill Industries. Security procedures make the site a safe place to bid and buy – it’s like buying something from someone you know," said Jim Gibbons, Goodwill’s CEO, during the celebration of the website’s 10th year of operations on August 31.

The website has also earned its share of validation and praise from notable sources. Time Magazine recently named the site as one of the "Top 50 Websites of 2009," saying that "unlike on eBay, the people selling stuff on Shop Goodwill often don’t know what they’ve got, so great deals abound."

Appealing to its members who have needed to consolidate debt due to financial troubles, Costco announced Tuesday that it will begin accepting food stamps at all of its location.

Costco CEO Jim Senegal told the SeattleTimes that he expected at least half of the company’s 410 stores to accept the stamps by the Thanksgiving holiday.

He admitted that while the company originally felt that the wholesale store’s members – who pay a yearly fee to remain connected with the stores – would not be the type to use food stamps, the times had ultimately dictated otherwise.

"The rules are different today," Sinegal said. "People who were in good shape financially all of the sudden are needing some assistance."

Following a recent announcement that Costco’s Q4 2009 earnings were projecting a 6 percent decline, chief financial officer Richard Gallanti admitted that the company’s initial view regarding their customers’ use of food stamps was "probably a bit arrogant on our part," the Associated Press reported.

In May, two Costco’s in New York City announced they would be accepting food stamps as part of a trial run of the company’s program.

One of the busiest travel days of the year may see fewer travelers due to the recession, as those looking to consolidate debt are considering adjusting their travel plans this Thanksgiving.

According to a survey released Monday by American Express, 30 percent of U.S. consumers are planning to make adjustments to their travel plans this Turkey Day, with 19 percent of those who traveled in 2008 adding that they were planning on staying home this year.

Additionally, the survey found that 7 percent of young professionals – which they defined as those under the age of 30 with a college degree and a minimum household income of $50,000 – were more likely to adjust their plans by spending less time traveling during the holiday. Only 3 percent of the "affluent" population – which was defined as those with a minimum household income of $100,000 – and the general population said that they were expecting to shorten their vacation.

However, despite the urge to rein in travel expenses, the survey also found that only 21 percent of consumers expected to reduce their expenses this holiday season when compared to what they spent in 2008. Eighty percent of respondents said that they planned on purchasing gifts this holiday season.

Travelers who are in debt counseling and trying to find a cheap way home this holiday season may be in luck, as both Southwest Airways and AirTran Airways introduced sales for many flights on Tuesday.

Southwest’s discounted rates will be available over a 48-hour period until midnight on October 29 and for flight from any of the airline’s terminals from December 2 to December 16, 2009 and January 5 to February 10, 2010. Sunday travel is excluded from the deal.

Rates will be as low as $25 for any flights up to 375 miles in length, and increase to $50 for flights between 375 and 549 miles, $75 for flights between 550 and 999 miles, and $100 for flights over 1,000 miles.

AirTran’s special will feature reduced airfare rates for all of its travel destinations through February 10, 2010. With the lowest rates available on Tuesdays, Wednesdays, and Saturdays, customers can find prices as low as $39 for Boston-Baltimore flights and trips to Aruba at $169 each way.

However, travelers can only take advantage of the AirTran sales until November 10, and all flights must be purchased at least 10 days in advance.

New figures released by the National Academy of Science (NAS) indicate that one in six Americans are currently living in poverty, significantly higher than figures found in previous government studies.

The figures calculated by NAS find the current poverty rate to be 15.8 percent, or 47.4 million Americans. They are notably higher than previous figures released by the U.S. Census Bureau that show the unemployment rate to be at 13.2 percent, or 39.8 million Americans, according to the Associated Press.

According to the NAS figures 7.1 million, or 18.7 percent, of all senior citizens had been driven into poverty by increasing Medicare premiums and other expenses. Almost 14.3 percent, or 27 million, Americans between the ages of 18 and 64 also were found by the study to believing in poverty as they consolidate debts while handling transportation and child costs.

"We haven’t seen rates this high, especially for certain groups, for 25, 30 years," Ron Haskins, a senior fellow at the Brookings Institution and former White House and congressional advisor on welfare issues, told ABC News.

While the Census Bureau takes a firm stance on its poverty line at anyone below $22,050 for a family of four, the NAS findings adjust their poverty line to conditions surrounding families, such as where they live, their out-of-pocket-expenses, and other variable costs, ABC reported.

The U.S. Treasury Department on Friday that it will be providing $284 million to the state of California to help provide affordable housing for its lower income citizens who may be looking to consolidate debt.

With the funding, the Treasury has now awarded $3.1 billion in payments in lieu of tax credits to 45 states since the launching of the American Recovery and Reinvestment Act in May to work with state housing agencies to develop or renovate affordable housing units for low- and middle-income families.

"This innovative Recovery Act program allows the federal government to partner with states to support local developers and helps ensure that housing developers can access the financing necessary to build affordable housing," said Treasury Deputy Secretary Neal Wolin.

The additional funding is the second move by the Treasury this week to spur low-income housing purchases or rentals across the country. On Monday it announced plans to keep mortgage costs down with a program that will have Freddie Mac and Fannie Mae sell finance agency mortgage sales back to the Treasury in order to support lending and create liquidity in the market.

California governor Arnold Schwarzenegger applauded the Treasury’s plan, saying it would "breathe new life" into the state’s lending programs, according to Imperial Valley News.

Jobless workers dealing with credit card debt consolidation or other forms of financial trouble likely didn’t find any answers for their problems on the job market in September as nearly half the states reported an increase in their unemployment rate over the course of the month, according to new figures released by the Labor Department on Wednesday.

Perhaps in fitting with the national unemployment rate’s 0.1 percentage point increase to 9.8 in September, 23 states and Washington D.C. reported that their over-the-month unemployment rate had increased as well. Eighteen states reported that their rate had declined throughout the month, while only eight states saw no change in their unemployment rate.

The Labor Department also found that nonfarm payroll had decreased in 43 states, significantly more than the amount that saw their unemployment increase. New York experienced the largest drop in employment, shedding 81,700 jobs.

Indiana was one of the few states that saw their nonfarm employment, leading the way with 4,400 employment additions. New Mexico saw the second most job additions at 3,700, but edged out Indiana for the highest rate of increase with a 0.5 percent jump.

The general rise in unemployment came despite a recent report from the Federal Reserve in which each district indicated that either "stabilization or modest improvements" in many sectors, including many positive reports regarding the real estate and manufacturing sectors.