Good times, Bad times - How Does Cashflow Fair?

In June, the Wall Street Journal reported that household debt decreased and Americans witnessed a slight increase of worth by 1.2%. Even while overall household debt seems to be decreasing, First Data Corp. reported that there has been a 6.8% increase in the use of credit for everyday purchases, especially among lower-income households. The higher costs of food and gas, for example, create a cash-flow problem for lower-income families due to stagnant wages, or even decreases many Americans have seen in wages. A comparison was done between cards that are actually debit versus credit, and consumers are actually using credit, not debit cards. More and more households live paycheck to paycheck, it seems. Analysts in some sectors believe the use of credit demonstrates an increase in consumer confidence and spending. However, First Data Corp. believes the usage is due to a lack of cash-flow, not a purposeful increase in spending or the use of credit due to the nature of purchases on credit, such as gas and food.

Disclaimer: This blog is for informational purposes only and does not establish a client-attorney relationship. Consult with an attorney before taking action on any information found herein as individual circumstances may affect the applicability of information provided. Call The Law Office of Michael Riley at 508-405-0831 with any questions.

FHA and the Making Home Affordable Program Assists Unemployed

Some good news for the unemployed: the FHA extended forbearance for long-term unemployed people so that they may avoid foreclosure. The FHA and the MHA (Making Home Affordable) programs are extending this relief to unemployed homeowners out of work for over 27 weeks. Two funds are working to assist homeowners. One if the “Hardest Hit Fund” offering $7.6 billion and the Emergency Homeowner Loan Program (EHLP) that offers $1 billion toward assisting the long-term unemployed.

Disclaimer: This blog is for informational purposes only and does not establish a client-attorney relationship. Consult with an attorney before taking action on any information found herein as individual circumstances may affect the applicability of information provided. Call The Law Office of Michael Riley at 508-405-0831 with any questions.