Since January, employers have been more likely to scale back employee salaries than to eliminate positions, a recent survey reveals. (more…)

Popularity: 10% [?]

Huntsville, Ala., Provo, Utah, Yakima, Wash., and Lafayette, La., all have at least one thing in common: They’re the living, breathing proof that some cities have actually triumphed in the face of a recessed economy.

These mid-size cities — where real-estate bubbles were relatively non-existent and where local banks largely avoided the questionable loans that have undermined the stability of many commercial banks — are managing this recession better than the nation’s largest cities and rural towns, according to 2007 data analyzed by Moody’s Economy and the credit reporting agency Equifax.

The data revealed that mid-size cities have seen their employment rates buck national trends and their lending institutions’ consumer loan balances rise over the past year (“Many Smaller Cities Dodge Credit Crunch in Consumer Lending,” The Wall Street Journal, March 30, 2009).

“The medium-size metros that have done the blocking and tackling are better positioned during the downturn,” said Ross DeVol, director of regional economics at the Milken Institute, a California-based think tank.

Mid-Size Cities, Banks Poised to Avoid Economic Pitfalls

The success of these cities can be attributed, in part, to their retention of unique employers; many of these cities are home to specialized industries with strong staying power and have been fortunate to land long-term government contracts.

Huntsville, for example, boasts the headquarters of the U.S. Army’s Aviation and Missile Command and a 3,000-employee Boeing facility, as well as the Marshall Space Flight Center, the NASA flight center that’s planning a return trip to the moon. The unemployment rate in this city of 376,000 was only 6 percent in January, compared to the national average of 8.5 percent, and consumer loan balances actually increased 13.2 percent per household compared to last year’s fourth quarter.

And for their part, Huntsville’s banks and credit unions — where problem commercial and consumer loans only represented 2.2 percent of total fourth-quarter lending, compared to the 4.9-percent national average — haven’t just faired well, they’ve been breaking records. Redstone Federal Credit Union in Huntsville originated $43 million in mortgage loans in February, a one-month record for the company, and made $17 million in auto loans in January, which was the fifth-highest monthly total in the company’s 57-year history. And ServisFirst Bank saw a nearly 70-percent increase of total loan balances in 2008.

Lending Data Could Be Deceiving

The Wall Street Journal is quick to point out that numbers these cities are producing may only be giving the illusion that the cities are thriving and may not be “a pure reflection of new lending,” writes reporter Dan Fitzpatrick. Consumers in these areas may still be engaging in the types of consumer behaviors that contributed to the current economic crisis, drawing heavily on existing credit lines to help them pay off their mounting bills and help them find debt relief.

But Equifax Vice President Jim Powers is confident that this type of borrowing isn’t the norm. “Most lending these days is pretty tight,” he said. “Anyone that is getting a new loan, the bank deems pretty low risk.”

Popularity: 10% [?]

During today’s challenging economic times you may be struggling to keep your head above water. And looking back on the financial mistakes you’ve made, you wonder if you’d be on better financial footing if your parents had done a better job teaching you about money. (more…)

Popularity: 6% [?]

Home loan delinquencies all across the country are skyrocketing, even in the nation’s largest city, New York, where the number of home loan defaults is only projected to get worse, reports NYDailyNews.com (“Late Bills Soaring in City: Debts Rise on Credit Cards, Auto Loans,” Dec. 3, 2008). (more…)

Popularity: 10% [?]

Citigroup Inc. lost $1.44 billion during the third quarter from credit card debt it packaged and sold as bonds, the financial services giant reported in a recent regulatory filing (more…)

Popularity: 6% [?]

Nevada has the highest percentage of U.S. homeowners with mortgages that are currently “under water,” where the mortgage debt still owed exceeds the current estimated value of the home (more…)

Popularity: 5% [?]

The credit crisis and shaky economy are forcing us to change our spending habits. As credit card companies roll back card limits and the majority of us keep watching our wallets, we’re moving away from the days when we just kept racking up more and more credit card debt, charging anything we wanted but didn’t have money for — stainless steel appliances, high-definition plasma TVs, new wardrobes, four-star vacations — and going back to actually saving up for our purchases and sticking to things we can afford.

Now, with Christmas just two months away and most of staring at limited holiday budgets, some retailers are offering us a budget-friendly, no-debt alternative to credit cards for our holiday shopping. (more…)

Popularity: 7% [?]

A CreditCards.com poll has found that eight out of 10 Americans are reluctant to talk openly about their level of credit card debt with someone they just met (“Poll: Credit Card Debt the New Taboo Topic,” July 8, 2008). More surveyed adults are uncomfortable with the idea of discussing their credit card debt than any other topic, including their love life, salary, religious views, (more…)

Popularity: 100% [?]

A new report, issued by the research firm Innovest Strategic Value Advisors, predicts that as the fallout from the credit crunch continues, consumers will be increasingly likely to default on their credit cards, forcing banks to write off nearly $100 billion in credit card debt over the next year (more…)

Popularity: 7% [?]

Even if you’ve done your own financial planning for years, in this current period of financial instability, as investments and retirement funds tank and the stock market swings wildly from one day to the next, you may want to consider the help of a professional financial planner.

Here, from The Sacramento Bee, are five pointers to help you (more…)

Popularity: 4% [?]