Jan 2010
7
by debbiedragon
Posted In: debt reduction
2009 will go down in the books as one of the worst global economic down turns in history. Home foreclosures and job losses are at record levels. Consumer 
spending is down and credit card debt is up causing a bleak economic and financial picture. A new year provides a fresh outlook. There are some positive trends and opportunities to look forward to in 2010.
spending is down and credit card debt is up causing a bleak economic and financial picture. A new year provides a fresh outlook. There are some positive trends and opportunities to look forward to in 2010.Home Buyer Tax Credit
First time homeowners with an income of no more than $75,000 or $150,000 per couple can still qualify for the 2009 $8,000 homebuyer tax credit. You must be in contract by April 1st, and close the property by June 30, 2010. If you’ve owned the same home for 5 consecutive years out of the previous 8, you are eligible for a tax credit up to $6,500 for homes sold after November 6th, 2009 and on or before April 30th, 2010.
Credit Card Act
Consumers have been struggling under interest rate hikes, and increasing bank fees. Slated to go into effect on February 22, 2010 the Credit Car Act will offer consumers relief and new protections in 2010. The Act will also require clear disclosure of fee changes, protect young consumers and college students, and regulate gift cards.
Cash is King in 2010
With credit card debt mounting on many Americans, customers are looking to reduce or give up completely the plastic and turn to cash instead. As of September 2009 Americans owed $917 billion in revolving credit card debt. During the 2009 holiday shopping season, USA Today reported that 71% of consumers planned to use cash or debit cards instead of credit cards as their primary method of purchasing gifts. The trend is likely to continue as consumers continue the new frugal lifestyle.
Community Banking
2009 was the year of the bank bailout. Americans were angry over the perceived injustice of the bailouts for mega banks that were raising fees and reducing lending. 2010 could be the year of the local community bank. A 2010 grass roots effort called Move Your Money is an initiative to change the finical landscape away from Wall Street to Main Street and encourage consumers to put some of their money in to community banks. The Independent Community Bankers of American describe the community banks goal to “focus attention on the needs of local families, business and farmers.” And “channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.”
Update Job Skills
Unemployment has climbed to just under 10% according to recent numbers. Experts predict that number to remain stable or grow slightly. 2010 will be the year to look at developing new skills to make yourself more valuable to your current employee or more marketable if you are looking for a job. Hot certifications include project management, search engine optimization, and Word Press for blogs.
New Year, Fresh Start
Many Americans were anxious to see the end of 2009. It was a year full of bad economic and financial news. There will be new rules and opportunities provided in 2010 for Americans to improve their financial lives. Lessons have been learned from the previous year that will make 2010 a successful economic year.
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