Tips to stay on top of finances in 2008
As we wind down 2007, certain financial trends seem to be accelerating: As a nation, we’re still spending more than we earn. Credit, which has been the backbone of our ability to live beyond our means, appears to be tightening. And, home values have fallen nationally (although they may be up in your particular neighborhood), eroding our home equity.
What does that mean for 2008? It may be harder to qualify for home equity loans and lines of credit to support all the consumer spending we’ve seen in recent years. And, if you carry a balance on your credit cards, you may pay a higher rate of interest even as the Federal Reserve lowers the federal funds rate.
If you’re already living beyond your means, and your adjustable-rate mortgage (ARM) is scheduled to rise this year, you could be running into a brick wall. Since the U.S. bankruptcy laws changed several years ago, it’s harder to get your financial slate wiped clean.