Credit Card Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Other Unsecured Debt $ Select One 0 1 - 2,499 2,500 - 4,999 5,000 - 7,499 7,500 - 9,999 10,000 - 12,499 12,500 - 14,999 15,000 - 19,999 20,000 - 29,999 30,000 - 39,999 40,000 - 49,999 50000+ Number of Creditors    Select One 2 3 4+ Status of Bill Payments    Select One Up to Date About to Fall Behind 1 Month Behind 2 or More Months Behind I want to    Select One Eliminate My Debt Consolidate My Debt Seek Advice Own a Home?    Yes  No

Your Credit and Wall Street Problems As you have heard government is helping Wall Street to regain confidence as well as helping banks with bailout plans. But what does it mean to you and your credit? Banks are struggling and those banks who are not will soon need help as low earning will force them to either borrow money or sell banks assets. Because banks made bad choices and gave loans from right to left, many borrowers cannot repay and banks are loosing money. If you own a home and cannot repay a loan, your credit will have affect for about 7 years and it will show foreclosure on your credit. Sometimes negotiating with the banks might help. With the new bill of $250 billion that was passed there is nothing to help homeowners at all. It only helps banks only as banks will receive certain amount of capital from government for their stocks. If banks receive a billion dollars investment they can either provide more loans to people with only excellent credit, pay off debt. That means that if you are struggling and about to loose your home, banks is more likely to walk away from negotiations rather than help you as they have backing from government.

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If you do not own a home but want to a buy it there is a good news and bad news. The good news that property values will continue declining for additional 8%-10% in 2009. That means more opportunities will be open for a great home for a lower price. And who says you cannot negotiate even lower prices. The bad news is that you need a significant down payment; at least 20% and FICO score of 700. Not many people can actually afford 20% and job stability in today's market is uncertain so many people are holding off their home purchases. If you have credit cards and you are late on them, banks will most likely will do what they do the best. Send you a plenty of notifications and letters to help you pay off the balance before their last trip will be collection agency. Banks know that situation is difficult and credit crises would be next big thing as more and more people will not be able to pay off credit cards. In many cases in 2009 we will see a huge losses in credit cards balances as banks will struggle to persuade consumers to pay day balances. Defaulted credit cards will stay on your credit for 5 years. If you have your auto loan and cannot pay there are few options you can do. You can call your bank and ask for a lower payment. If this is not possible you can simply let your friends, colleges or anyone to drive your car for a contribution to your payment. For example, if your payment is $400 a month, you can let your friends drive your car for $200. That way you will keep your good credit. If you need a car but cannot pay your current auto loan you can always share your car with someone on certain days, or carpool. Once your situation improves you can always get your car back. Credit is important in life; it is like a good grade you get at school. You never know when you need another credit card when emergencies will arrive. With current market, lender will make credit more difficult. There will be many rejections, many people maxing out their credit limits and not getting approved will be soon a standard. Even with all this help from government, there is no provision how to help credit industry to fix itself. A new package of $540 billion which President Bush is open to discuss many include another round of rebate check similar to earlier this year when individuals and couples received $600-$1200. According to government this may help spending again. However, credit is tight and lenders are not willing to lend to individuals with bad credit so therefore most of those checks will be used for paying bills or putting it back in your banks account. What government is missing is to stabilize home prices and let homeowner and lenders negotiate better terms and in some cases force lenders to agree on a deal that may involve a huge loss. To help lenders swallow the loss better, government can simple insure the loss. $250 billion bill that was passed is designed to buy bad mortgages from lenders, therefore easing their assets so they can lend more again. This may or may not help you. Government plan is to refinance your current loan and provide fix rate. The question is, can you afford it. So far no guidelines are being releases as it will take time for government to implant this bailout plan. What future brings may be interesting to see and many people are already struggling and some are breaking even every month. Credit is important and you should do everything to fix it.