Consumers looking to consolidate debt by attempting to move into a cheaper house or refinance their mortgage at a lower rate may not like the latest statistics regarding mortgage rates, which shot up at their quickest pace inrecent months during the week ending December 27.

According to the Zillow Mortgage Rate Monitor, average interest rate for 30-year fixed-rate mortgages saw the largest increase for the week, skyrocketing 0.16 percentage points to hit 4.93 percent. The rates had undergone an increase, albeit a much smaller one, the week earlier as well as increasing 0.05 percentage points for its first increase since October.

Rates for 15-year FRMs took a noticeable jump as well, rising by 0.13 percentage points to hit 4.37 percent. The week prior, average rates for type of mortgage had undergone a much smaller 0.03 percentage point increase following two weeks of smaller 0.01 percentage point gains.

Shorter term 5-1 adjustable-rate mortgages also underwent a significant jump for the week, bumping up 0.13 percentage points as well. The rate had undergone much smaller increases in recent weeks, including a 0.04 percentage point increase the week prior.

As the national mortgage rates continued to rise during the year’s fourth quarter, the volume of mortgage requests continued to fall as well as the volume of mortgage requests declined 26 from the week prior.

Despite many consumers’ plans to avoid spending money on their credit card this holiday season, new research is showing that restricted lines of credit being implemented by creditors.

According to Britt Beemer, the chairman of the polling firm America’s Research Group, restrictions on consumer’s credit lines may be responsible for a decline in sales during the November and December to $436.7 billion, 1.2 percent below the spending figures during the same months taken one year earlier, BusinessWeek recently reported.

ARG research found a noticeable decline in credit offerings has taken place in 2009 resulting in 10 percent more credit requests being denied than in 2008 while 37 percent of cardholders had their credit lines amended somewhat.

If not for the decline in credit, Beemer said that end of year sales in ’09 could have been a completely different story. Instead of a decline, he told BusinessWeek that sales could have climbed by 0.8 percent to $445.5 billion during that same time period.

The potential for a decline in sales will likely not sit well with retailers whom are already dealing with a decline in consumer spending for the third straight year. A recent study from Consumer Reports found the average consumer would spend $699 on holiday gifts this season, an average of $41 less than 2008 figures.

A newly issued study from Equifax has found that creditors are beginning to shy away from consumers who may have previously dealt with credit counseling services as a way to climb out of debt, reductions of credit lines have led to a decline in new card issuances in recent years.

Accordingto the study, which was released on Tuesday, creditors have developed a trend of reducing their lines of credit since instituting card risk management programs in July 2008. In that time, Equifax reported that card credit accounts had declined by 93 million while lines of credit had decreased by $803 billion

Equifax also found that the 2.4 million bank cards that had been opened in September was 45 percent lower from one year earlier.

"The story of 2009 continues to be one of consumer retrenchment and credit tightness as people strive to pay down debt or are forced to abandon it, and lenders more aggressively manage risk in their portfolios," said Dann Adams, president of Equifax’s U.S. Consumer Information Solutions.

The survey also found that delinquency rates for credit cards saw a significant jump over figures taken at the end of 2008. In November 2009, the 60-day delinquency rate for cards stood at 4.62 percent, well above the 3.76 percent rate recorded in November 2008

As consumers deal with limited funding and other means of debt management that may eliminate the possibility of buying any big-ticket items this year, more may instead look for a personal touch with their presents this season.

"With everyone being frugal, giving someone a custom water bottle with a picture of their dog on it is more chic and special and loved than last year’s Chanel sunglasses," said Amy Maniatis, vice president for marketing at CafePress.com.

In addition to selling its own pre-made apparel, CafePress offers the ability to customize 40 different items ranging from beer steins and magnets to pillows and boxer shorts by adding pictures and lettering.
Other websites such as ScrapBlog offer customers the ability to upload series of pictures and have them turned into personal printed scrapbooks.

"With the recession, people don’t want to surround themselves with things that are just stuff," home furnishing designer Jonathan Adler told the Times. "Everything that people purchase now has to have a little bit more meaning."

With funding so limited for many, giving emotionally meaningful gifts has been so en vogue this season that many advertising campaigns have downplayed the notion of glitzy and expensive presents in favor of more personal ones that carry extra meaning.

Even for families who had committed to consolidating debt this holiday season, the end of the shopping season may also bring some type of "sticker shock" during the first run-through of finances for the new year.

Because of that Kristy Archuleta of Kansas State University’s Institute of Personal Financial Planning Clinic has compiled some tips that consumers can begin doing immediately to prepare for a financially smoother holiday season in 2010.

While many families do not take enough time to put money away in preparation for the holidays, Archuleta suggested that a portion of every paycheck be committed into savings in order to have a financial cushion that prevents even a mildly extravagant expense from plunging them into debt.

Additionally, as many consumers learned this holiday season, Archuleta urged families to begin their shopping for the holidays as early as possible in order to shop around for the best prices before making a purchase.

"Another way to save is start your holiday shopping early, watching for sales and doing comparison shopping to get the best quality and best price for your money. Be sure to check sales prices at the store to make sure you are actually buying the item on sale," she said.

Numerous surveys taken this holiday season found that consumers had taken to online shopping in order to property compare prices against one another before making a purchase.

With cash at a premium for many families looking to consolidate debt, Tennessee Attorney General Bob Cooper is making a point to warn consumers to be careful and not fall victim to expiring gift cards and rebates that could ruin a holiday gift.

Cooper warned that, in an attempt to lure customers to their shops, many retailers may offer discounted prices on numerous items, but require consumers to send mail-in rebates to third parties in order to get their refund.

However, he added that some refunds – or gift cards that may either be awarded by some retailers as a discount or purchased outright as a holiday gift – may expire unbeknownst to the consumer and render it useless.

"That’s money and time wasted if you don’t pay attention to the details or don’t follow through to see why the company never mailed the rebate," Attorney General Cooper said. "A little research can go a long way toward collecting what you’re due."

While Tennessee has a gift certificate law which prohibits gift certificates from having n expiration date of less than two years, Cooper added that there were still exceptions to the rule that must be looked for and considered by consumers before making any decisions on a gift card or rebate offer.

According to a recent survey conducted by the Retail Council of New York, gift cards/certificates were singled out as one of the more popular gifts for adults this holiday season, WIBV.com recently reported.

A newly released survey from Consumer Reports has found that Americans are holding out for good deals and intend to spend less this holiday season than in years’ past.

According to a spending survey released by the organization last week, 40 percent of Americans stated that they had not yet started their holiday shopping as of December 6.

The survey also found that – for the third straight year – the average amount of money consumers planned to spend during the season decreased. After dropping $23 to $740 in 2008, the average amount spent declined another $41 to $699.

Despite consumers’ increased attempts at debt management, survey respondents said they planned to purchase an average of 15 gifts, the same as in 2008.

"The findings clearly show that Americans are taking a pragmatic approach to the holidays. And that’s a good thing," said Tod Marks, senior editor for Consumer Reports. "Consumers are spending a bit less, focusing on more practical gifts, and vowing to take on less debt and pay it off sooner."

For those who had begun shopping, 41 percent said they had found the best holiday deals at brick-and-mortar retailers such as Walmart and Target. Thirty-nine percent said they had found the best deals via online retailers, while 16 percent favored discount stores such as TJ Maxx and Marshalls.

A new study is suggesting that the Great Recession may be acting as a marriage counselor for couples whose relationship are on the rocks and, in some cases, even save the relationship – albeit for financial reasons.

According to a recent study released by W. Bradford Wilcox, the director ofthe National Marriage Project at the University of Virginia, the divorce rate in 2008 fell to 16.9 per 1,000 married women in 2008 from 17.5 per 1,000 married women in 2007.

Wilcox predicted many couples had probably committed to stay together as a means of debt consolidation and to avoid financial troubles that would occur if they separated.

"This divorce decline suggests that most married couples have not responded to the economic crisis of the moment by heading for divorce court," the report read, "Instead, judging by divorce trends, many couples appear to be developing a new appreciation for the economic and social support that marriage can provide in tough times."

Couples who do decide to separate may also have different priorities in divorce court than the may have had previously. Based on a recent study by University of Arizona professor Brent White, who recommended homeowners walk away from houses with mortgages that had more owed to them than they were worth, couples may be less likely to debate the ownership of a shared home that is losing value and decide to simply get rid of it instead.