““Operation Twist” And Where That Stands With Your Credit Card” plus 1 more

“Operation Twist” And Where That Stands With Your Credit Card

Posted: 03 Oct 2011 04:03 AM PDT

The Federal Reserve has just released its latest attempt to stir up the otherwise stagnant and bogged-down economy, termed "Operation Twist." This initiative is led with one clear goal in mind and that is to keep long-term interest rates as down as they can be.

Unfortunately, most sources and economists are predicting, this shouldn't help too much. Instead of bandaging the economy's wounds, it appears to be tearing them back open.

"Mixed at best," predicted Arnold Taubman, the resident economic expert at Credit-Land.com. "Some areas will see some boosts, including lower rates on mortgage and possibly also other fixed-rate loans. That seems to be the extent of the happy news, though."

Mortgage rates lead the pack, in terms of priority. The $400 billion being set aside by the Fed is intended to buy longer-term "Treasuries."

Principle payments are targeted to be invested from securities. The motivation there is to keep mortgages low, so consumers will feel okay about buying real estate again. Right now, interest rates are already at about the lowest in forty years.

"They average, presently, 4.09% on a 30-year fixed mortgage," commented Taubman. "A lot of this depends on consumer confidence and that is ailing at the moment."

As for consumer debt, we recently saw an influx of that. However, perhaps Operation Twist can reverse that trend, as most credit cards have variable rates that depend flatly on the prime rate.

Consumers should then be content with the concept that the interest rates will be fairly low until somewhere in the middle of 2013.

"Sure it sounds good," said Taubman. "But credit cards aren't going to get any lower, sadly, as much as we would like to see that turn into a reality. They might even rise, because the prime rate and the federal rate aren't co-dependent."

Credit cards aren't alone in walking away, unfettered; the same holds true for auto loans.

"Perhaps 'Operation Twist' will end up doing more harm for the economy rather than aiding it. We can only see after its effects have been carefully studied and analyzed and that will be a while," concluded Taubman.

7 Things You Need to Be Prepared for an Emergency

Posted: 03 Oct 2011 04:00 AM PDT

You never know when disaster will strike. My husband’s family encountered some rather difficult situations as a result of the hurricane Irene, which sent the floods through their homes in the Catskill mountains. Indeed, my husband’s grandmother’s entire, historic town is considered a loss. His parents, even though they weren’t flooded out, were without power and telephone for three days. This has me thinking about the importance of emergency preparedness. If you want to be ready for an emergency, here are 7 things that you should consider getting:

1. Emergency Fund

One of the best things you have in a tough situation is an emergency fund of some sort. It’s a good idea to have a liquid fund somewhere. And, even though your credit card isn’t the best emergency fund, an emergency card that you can use in a tight spot, might not be amiss. Many people also find it useful to have a stash of cash at home, kept in a waterproof, fireproof container (a fire safe can work well), just in case it is impossible to access your bank account or use your credit card.

2. 72-Hour Kit

It’s usually a good idea to have a properly prepared 72-hour kit. This is a kit that includes non-perishable food items, water, basic first aid supplies, toiletries and other necessary items, as well as a crank radio or battery run radio. You can purchase 72-hour kits, but I find it can help to build your own, or add to a kit that you buy. A change of clothes and underwear, as well as small activities for children, or a game that the whole family can play, can be helpful. Make sure supplies of medications family members need are kept in the 72-hour kit. Your 72-hour kit should be somewhere you can grab it quickly, just in case you need to evacuate.

3. Emergency Car Kit

You should also be prepared for emergencies that require you to drive somewhere, or that strike while you are driving. Keep your car properly maintained. I like to keep blankets in my car, as well as a first aid kit. We also have our flat tire kit in the car, as well as flares. And, so that we are ready to go if we need to, we keep our tank half full. It means avoiding the long lines at fueling stations in an emergency situation. Before we leave on a long trip, we also pack a few food items, and make sure to have water.

4. First Aid Kit

The emergency first aid kit you have in your home should be different from the kit you keep in the car, or the kit you have with your 72-hour kit. This should be an expanded first aid kit with plenty of bandages of all types, splints, gauze, medical tape, disinfectant, ointment and other items.

5. Home Food Storage

When you end up in an emergency situation, where you are stuck at home, it is a good idea to have home food storage. This can also be a boon during times of financial hardship. When my husband and I had a few lean months a few years ago, we relied on our food storage to help get us through. A huge stockpile isn’t necessary, but some non-perishables, water and other items can be a big help.

6. Personal Care and Household Items

You should also consider making sure you have a few extra personal care and household items. Toilet paper, paper towels, tissues, soap, and other hygiene items can come in handy in an emergency.

7. Heat, Light and/or Power Sources

You might also want to make sure you have a heat source for an emergency. We would like to buy a generator at some point, but, for now, we have a house-safe propane heater designed to warm up our family room. We also have crank lanterns and flashlights, as well as candles. We have a camp stove, and a grill, both of which can be used to cook for and provide warmth in a pinch.

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