The Money Doctor

Your Guide For Making Smart Money Choices

The thing to remember is that the banking industry is in big trouble. They are scared you will not make your mortgage and credit card payments as the economic collapse continues. This in itself is scary because as the economy slows down, people lose jobs and start having a hard time making payments on time. Why this scares them is, they borrow money themselves which has to be paid back also. If you do not pay them, they cannot pay their loans back to the Federal Reserve. The mortgage default rates are raising sharply everyday. which is is a real concern. This is just a reaction to the economic slowdown which causes loss of jobs and unemployment. It is impossible to pay your bills when you are out of work unless you have a nice amount of cash set aside to cover these expenses untill you can get a new job.

If you want to keep you good credit standing, pay your bills on time. Credit card companies are watching how you pay your bills. If you just pay the minimum, you could be singled out as a potential credit risk now. Credit card companies are no longer eager to lend you money. They are trying to get rid of high risk consumers by reducing credit card limits. The sure way to solve your problem is to pay off your credit card, then you can focus on building an emergency savings fund.

 Smart Money Tip