All eyes and ears have been fixed on the economy for quite some time now. Many think that Barack Obama will turn things right around as soon as he takes office. However, even he is not so sure. But, despite the economic signs of 2008, 2009 is expected to be a much better year. Here’s why.

Decreasing Oil Prices

Do you remember when oil hit $147 per barrel? It wasn’t that long ago. Currently, oil is only about $45 per barrel. Global demand for oil has dropped significantly. Gas prices are currently $1.61 per gallon around the country. Some experts think that the price of a gallon of fuel will soon drop to only $1 per gallon. Oil prices weren’t nearly this low at the beginning of 2008. It is a great sign that gas prices have dropped so significantly.

Mortgage Rates

Mortgage rates are falling as fast, if not faster, than energy prices. The Federal Reserve has pledged to purchase millions of dollars in mortgage securities. Thus, mortgage rates continue to fall. The average rate for a new mortgage loan is now only 5.26%. Economic prosperity is in the forecast for 2009 thanks to falling mortgage rates.

The Federal Reserve

The Federal Reserve has been working tirelessly to get this country’s finances back on track. The Federal Reserve has pledged to do anything to “strengthen the economy.” Short term interest rates have already been pushed close to 0%. The actions of the Federal Reserve have gone a long way in preserving and restoring the United States’ economic situation.

Barack Obama’s Stimulus Plan

The Obama administration plans on spending between $750 billion and $1 trillion over the course of the next two years. Most of this money will be spent on rebuilding American infrastructure. This would include everything from green technology to transportation and beyond. Millions of jobs will also be created. Barack Obama’s revised stimulus package is credited with helping to get the economy back on track.

Deep Fundamentals

America is still considered to be a leader when it comes to fundamental strength. Innovation, a flexible labor market and higher education are ranked among the highest of America’s strengths.

When it comes down to it, America is in better shape than everyone thinks. We are certainly doing better than we were back in the 70′s. America has overcome many challenges in 2008 and is expected to do so again in 2009.

Retail sales numbers for Black Friday this year gave many retailers hope that the holiday shopping season would not be as bad as expected. However, the rest of the holiday shopping numbers didn’t do so well. To entice shoppers into their stores, many retail stores had similar or identical deals as those offered on Black Friday. Unfortunately, those deep discounts didn’t help out retailers much in what amounted to a very dismal holiday shopping season for 2008.

If you chose to wait for after-Christmas sales, got gift cards or cash and plan to do some shopping – you are in luck! Many top retailers have slashed prices on already deeply discounted items even further and we are not talking about Christmas ornaments or that ugly sweater you got. We’re talking about further price reductions on brand-name apparel and even high-end electronics. Be sure to check out sale prices from Macy’s, Target, Walmart, Sears, Circuit City and more.

Don’t worry about big crowds either as recent weather conditions (snow) throughout most of the country and with many people heading back to work today, there won’t be much competition. You most likely be able to find exactly what you want without much hassle in the store or online.

Get out there, save (& spend) some money and don’t forget to use a reward credit card on every purchase!

The American economy is struggling in more ways than one. Americans around the country are having a hard time making minimum payments and mortgage payments. Everyone has seemingly “tightened their belts.” Out of all of the bills out there, which one is taking the biggest hit? Credit cards.

The number of two-month credit card delinquencies has risen 24% since August. More and more consumers are finding themselves unable to pay simple credit card bills. These consumers don’t expect to get out of this bind anytime soon.

Retailers and merchants are already feeling the nationwide pinch. Consumers have stopped spending money. However, as the number of credit card defaults continues to rise, the situation will only worsen.

Recent statistics show us that approximately one in every eight credit card holders is in trouble. One in eight card holders will likely default on a department-store-issued credit card. The Fitch Retail Credit Card Index predicts more charge offs in the near future. Charge offs are debts that are deemed to be “uncollectable”. Fitch expects the number of charge offs to surpass 12% in the first half of 2009. The number of current charge offs is already 40 percent higher than the highest levels in 2007.

There is a bit of surprising news however. The Fitch Index reports that retail credit card portfolios remain healthy. How could this be when the number of defaults has escalated so much? The interest rates that are being charged to consumers exceeds the number of charge offs. Thus, the “healthy” retail credit card portfolio status.

So, how reliable is the Fitch Retail Credit Card Index? Well, it tracks more than “$72 billion in principle receivables backing approximately $40 billion of retail or private label credit cards.” Citibank Omni Master Trust and GE Private Label Master Trust are the largest issuers in Fitch’s Index. Some major retailers that are included in the Index are: Wal-Mart, Home Depot, Inc., J.C. Penny Co. Inc., Best Buy Co, Sears Holdings Corp.

Consumers around the country have found themselves strapped for cash these days. The credit crisis hasn’t made it much easier, until now.

New regulations are going to be presented by the federal government in the upcoming weeks. These regulations will restrict any and all credit card practices that are seen as unfair or deceptive. Credit card regulation proposals have included a number of different restrictions. These restrictions include prohibiting:

• - Increasing interest rates on an outstanding balance (except under limited circumstances)
• - Applying payments to the minimum payment to maximize interest charges
• - Requiring a reasonable amount of time for consumers to make payments

Consumers have played a big part in getting the feds to listen. Thousands and thousands of comments have been posted on the Federal Reserve’s website. These consumers have begged and begged the government to place tighter restrictions on credit card practices.

The credit card industry, as a whole, is extremely skeptical about the new regulations. It is concerned that each regulation will prohibit its ability to manage risk. This could cause credit card companies to be forced to raise interest rates and decrease the amount of available credit. Meredith Whitney, a well-known credit analyst recently predicted that the rules would decrease credit lines to 40 percent.

She said, “With so many Americans relying on their credit cards as a major source of liquidity, it would be equivalent to a major pay cut.”

The major problem right now is that the rules and regulations have not been finalized. However, the industry predicts that the Federal government will act aggressively.

Ken Clayton, the managing director of the American Bankers Association‘s card policy council, said, “What you’re going to see is an unprecedented change in the way consumers deal with their card companies. In light on the current economic uncertainties, it’s important that all of us understand the full impact of these regulations on consumers and the economy before we can understand [whether they are] successful.”

Credit card companies have protested several of the possible regulations. For instance, credit card issuers do not agree that there should be regulations put in place that would prohibit increasing the interest rate on outstanding balances. Past proposals would allow exceptions to the rule (namely, when a minimum payment is not received until 30 days past the due date. However, the industry argues that 30-days for a delinquency is already too long.

The fact of the matter is that nothing is certain yet. The Feds are feverishly working on the regulations and should be releasing those regulations soon. As a consumer, you can sit back and take a deep breath knowing that your end of the bargain is about to be loosened.

There has been a lot of skepticism about this year’s holiday shopping season. Skepticism has come from retailers and consumers alike. But, the outcome from Black Friday and Cyber Monday should put every one’s fears at ease.

Polls showed that consumers were planning on spending a lot less this year. However, polls show people’s intentions, not their actions. As a society, we often act differently (especially when it comes to spending money) than we intended. There are three main reasons why people acted differently than their intentions predicted…

1. It’s for the kids! Parents and other adults seem to deprive themselves so that they can give to the kids. It often means us going without so that the kids can have the latest and greatest toys.

2. Frugality. There seems to only be so much frugality that people can take. Consumers get tired of deprivation. This deprivation leads people to to splurge and sometimes go overboard.

3. Math skills. Many people think they are getting great deals until they stop to actually add up the math. Many consumers do the math too late and end up making mistakes when it comes to holiday shopping.

Here are some helpful tips for smarter holiday shopping this year.

1. Check it out - Retailers can be tricky and crafty. They have to be, especially in today’s economy. Be careful when doing your holiday shopping. Do your research and make sure you aren’t buying the same things over and over and over.

2. Make a list - If you tend to forget about the gifts you’ve already purchased, go ahead and make a list. Lists can prevent you from overspending and help you prioritize.

3. Cost vs. Value - Sometimes it pays off to spend a little bit more money. Check out the quality. Would it be worth it to spend $5 extra for the one you know is going to last?

4. Know your rewards - Before doing any holiday shopping, review the reward benefits for all of the programs you are a member of; MyPoints, InboxDollars, AMEX, etc. It really pays off to review the reward options for each store before making any purchases.

5. Compare, compare, compare - Just because you think something is a great deal, you should still do a little bit of research first. It is safe to assume that anything that is really cheap is the lowest-end quality. Do your research before spending any of your hard-earned money.

6. Don’t rationalize - Don’t give yourself a guilty conscience just because you bought yourself a sweater. It is also important to realize that you can’t buy everything on your list. Your loved ones can’t have EVERYTHING they want. Count your blessings instead of rationalizing.

7. Keep your perspective - Perspective is the most important thing to have this holiday season. Keep in mind that the people on your list are going to be thrilled to get whatever you got them. If you don’t buy it, they certainly can’t miss it.

These tips are sure to come in handy this holiday season. The most important thing to remember is that you can make a lot more out of your holiday shopping if you do your homework and stay informed.

Black Friday wasn’t projected to be very successful this year. Why? Because the U.S. economy isn’t doing too hot, so experts expected that sales would be down on Black Friday. However, Black Friday was not bleak at all for retailers this year.

The official holiday shopping season was kicked off on Black Friday. Retailers around the country didn’t get their hopes up. Experts predicted that the day after Thanksgiving would bring lower-than-average sales. These experts couldn’t have been more wrong.

Black Friday this year did better than it did last year, if you can believe it. Malls and shopping centers were more crowded than ever. It has been estimated that over 172 million shoppers took advantage of Black Friday deals this year. These consumers went shopping over the course of the three-day weekend.

Last year, only 147 million shoppers went out. That is more than 30 million people that took advantage of Black Friday deals this year. These shoppers didn’t go out for nothing. The average shopper spent over $370…$372.57 to be exact. Last year, the average shopper only spent $347.55. There were quite a few more shoppers this year and the average shopper spent more this year than last year. In fact, shoppers spent, on average, about $25 more than last year. Over $41 billion was spent over the course of last weekend.

These are surprising numbers, especially considering the economic crisis our country is in right now. Black Friday deals aren’t over though. Many of these excellent deals are being carried into today. Today, Cyber Monday, is targeted to benefit online shoppers. A recent survey conducted by Shop.org predicts that 84.6 million people plan on shopping online today.

Scott Silverman, the Executive Director at Shop.org recently said, “Online retailers have been planning their Cyber Monday promotions for months and are eagerly waiting to debut these deals to shoppers. Many people who didn’t want to fight the crowds or get up early to stand in line over the weekend have been waiting until Cyber Monday to start their holiday shopping.”

Cyber Monday could surely bring more good news to already pleased retailers. Over 83 percent of retailers are offering special deals and promotions. Black Friday was already successful and Cyber Monday is expected to be even more successful. Who said this economy is struggling? Numbers from the Black Friday weekend show quite the opposite.

Make you holiday shopping more enjoyable this year with credit card rewards.

Finally, some good news for the consumer. The federal government announced several new programs that will unfreeze the consumer debt market. These programs will also allow mortgages to be more easily accessible and cheaper.

The Federal Reserve and the Treasury Department recently announced the new plans to help consumers. These programs will provide billions of dollars in government support in order to stabilize the U.S. financial system.

The program will lend up to $200 billion to people who hold securities that are backed by auto loans, credit cards and student loans. The Feds hope that this program will provide greater demand for each of these securities. As the demand for these securities increases, interest rates should go down and the amount of loans available will increase.

The $700 billion bailout plan will support this $20 billion in credit protection. Officials also announced that the government will also buy $600 billion in mortgage-backed assets. The purchase of these assets will be a completely separate attempt to deal with the financial crisis. Over $100 billion direct mortgage obligations will be purchased from mortgage giants like Fannie Mae and Freddie Mac. Another $500 billion will be bought in mortgage-backed securities. These securities consist of several pools of mortgages that are sold to investors as a bundled package.

The housing crisis has bled into the credit card arena. There have been an increased amount of defaults on sub-prime mortgages because money was handed to borrowers with weak credit histories. Banks around the country have lost billions of dollars because of these losses. These losses have caused these financial institutions to stop lending, almost altogether.

The new Federal program has been established to encourage financial institutions to start lending again. Government aid will help banks and credit card companies get started again. The credit thaw for consumers is about to begin.

Over the course of the past few weeks, several changes have occurred to many of the credit cards on our website along with the complete removal of others. The proverbial belt of available credit appears to be tightening even more as interest rates are raised, credit lines are trimmed and cards are eliminated all together. And all of this is happening just as we enter into the holiday season, the time of year where retailers offer great deals on merchandise and the demand for credit increases dramatically.

Despite all the changes and the reasons for those changes, there are still some really good credit cards available and even some issuers have improved their offers for holiday shoppers this season. If you’ve been thinking about applying for a credit card this holiday season, now is the time to do so. Several very competitive and industry stalwarts are still available that earn rewards, allow you to make purchases or balance transfers for an introductory 0% APR and help establish or rebuild credit.

The term “Black Friday” can be traced back to the 1960′s in Philadelphia (WikiPedia 2008) and did not carry the same connotation it carries now. Nowadays, “Black Friday” is still synonymous with long lines and traffics jams, but more importantly the amazing deals retailers offer us on electronics, clothing and other holiday merchandise. If you’re one of the few employees who still gets a Christmas or year-end bonus, taking advantage of the “Black Friday” deals may not always be practical with the timing of a bonus. However, taking advantage of an introductory 0% APR on purchases would allow you to enjoy the special pricing on the day after Thanksgiving for many of your gifts, pay no interest and pay off the balance with your bonus. You can also enjoy additional savings when using a reward credit card.

If your looking past the holidays in anticipation to the start of a new year and are looking to make a few New Years goals, like getting out of debt, then check out balance transfer offers. Bank of America has extended some of their balance transfer offers to 15 months for 0% APR and a low 3% transfer fee. For those with a balance still on their department store credit cards accruing 20 plus percent interest, check out card offers that offer lower rates on balance transfers for those with excellent, above average and good credit.

No matter what type of credit you have, there are still many offers to choose from. Making sure you act fast to save additional money on holiday purchases, saving money on existing balances or to rebuild your credit, there is a credit card offer available for every need. Remember this holiday season to read the full terms and conditions of each card and never over-extend yourself from your ability to repay your balance in full within a reasonable time if necessary.

Millions of consumers are defaulting on their credit cards. We aren’t talking about hundreds of dollars. We are talking about thousands and thousands of dollars of unpaid balances. Because so many credit card holders are defaulting, banks are being hit…hard.

Federal regulators have now entered the picture. They are being asked by financial and consumer advocated to let lenders significantly reduce the amount of debt owed by some consumers. Consumers that are in heavy debt are being considered to begin a special program. This program would help reduce their credit card debt by up to 40 percent.

The credit card debt forgiveness program is being pushed by the Financial Services Roundtable and the Consumer Federation of America. Both of these two organizations have pointed out how desperately urgent the situation is. America has hit an all-time high in credit card defaults (both the number of defaults and the monetary amount of these defaults). Banks and other financial institutions have been left scrambling.

So, what exactly is the proposition? How will this plan work? Consumers who aren’t able to qualify for current repayment plans and who are carrying extreme levels of debt. In a recent statement, the two groups said, “This proposal would make it financially feasible for credit card lenders to provide immediate financial assistant to American consumers who are carrying record levels of debt.”

Almost every major credit card institution has already agreed to begin a temporary program. This program would forgive up to 40 percent of the person’s debt. The remaining balance can be paid over time. Each institution would evaluate each case separately and the amount to be forgiven would be forgiven on a case-by-case basis. Those who qualify to have 40 percent of their debt forgiven would reach an almost personal bankruptcy status.

The plan is hoping to create a balance between the creditor and the consumer. “We are asking to provide guidance to lenders that will in turn offer relief and stability to consumers.” Is this the best thing for Americans in such a heavy recession? Should there be more counseling programs in place to prevent people from living so far out of their means? The Federal Reserve estimates that Americans are now enslaved to approximately $900 billion in credit card debt.

What is your opinion? What should be done to combat such rising credit card debt?

People everywhere are experiencing the “credit crunch.” Some people have been feeling the effects of the credit crunch for several months while others are just beginning to feel it. Credit card companies have begun to take drastic measures in determining someones credit worthiness.

Have you ever heard the adage “guilt by association?” American Express customers have now been linked into that category. American Express is now limiting cardholders’ freedom according to where they live, shop, etc.

Customers are completely outraged. American Express customers around the country have recently noticed lower limits and tighter restrictions. Some customers are now having to consider closing their businesses. Without the freedom to purchase products for their business, many people might have to close their doors.

American Express has sent letters to people with AmEx cards notifying them of the changes. These letters include several reasons why the changes have been implemented. Among these reasons are, “Our credit experience with customers who have made purchases at establishments where you have recently used your card.” Another reason has been, “Our analysis of the credit risk associated with customers who have residential loans from the creditor indicated in your credit report.”

This is the first time that such limits have been implemented, although rumors of such limitations have been around for quite some time. American Express is completely defending their position on the issue. AmEx has decided to monitor credit risks. This includes monitoring credit profiles, income, credit reports from all three credit bureaus, payment history, etc. However, the major credit card company is also considering factors that have recently arisen from the struggling economy.

It does seem surprising that a major credit card company is taking such drastic measures to monitor credit risks. The lack of credit risk monitoring is a major contributor to the current crisis facing our economy. However, restricting someones account because they shop at a particular store or have a loan with a particular lender seems a bit unethical.

A troubling economy has led to drastic measures being taken by everyone. What will this lead to next? This is certainly a major issue for a country that lives primarily on credit. Our country is being forced to learn how to live without credit, or at least as much credit.