Home improvement loans are home loans used to finance improvements on your house or property. These improvements can include repairs, a new bathroom, a new kitchen, any extensions or simply general improvements. Interestingly, these loans were also the original home-equity loans before they grew into a limitless line of credit. The theory is that any improvements made on the house will increase its value and enable you to pay back the loan.

The key questions to ask when evaluating such a loan is:

1. Are the improvements you plan to make increasing the value of the home to a greater degree than the loan amount?
2. What will the monthly payments be and are they affordable given the existing mortgage?
3. What are the tax implications and are there any potential tax deductions available?

It is important to get quotes from contracts before approaching lenders as well since they will require this information. It is also important to estimate the value from these improvements in order to assure the lender that you’ll be able to pay back the loan. The loans themselves come from five main sources:

1. First Mortgage
2. Second Mortgage
3. Refinancing Solutions
4. Unsecured Loans
5. Grants

In the end, home improvement loans can be a great way to leverage your house in order to increase value in the same way that a stock investor can borrow money to invest in stocks in order to increase his/her return. This can pay off in the long term as long as your are sure that the value will be realized.

High costs at the gas pump may be a pain when you drive, but now it's becoming a burden at the grocery store as well. Few people take the time to consider that the foods they eat are not grown locally; rather, they are flown in from around the world and combined. The costs to transport these food products are rapidly rising due to the increased cost of fuel. This has directly caused higher food costs for consumers as a result.

There is also another way that energy is involved. Government incentives designed to increase the usage of ethanol have led to tons of farmland being converted to meet the demand for corn. This is land that may have been previously used for growing wheat or other edible crops (ethanol corn is not the same as human edible corn). Currently, ethanol crops account for around 7% of the corn crop, but this percentage is only growing.

In the end, it is clear that rising fuel costs have contributed to rising food costs. The cost of transportation for food products have skyrocketed and forced manufacturers to raise their prices. Meanwhile, high oil costs have led to government incentivizations to produce ethanol. This has caused a reduction in the number of farm acres used for human-edible food products. This is all bad news for the consumer pocketbook!

Gas prices climbed 3 cents overnight to hit a new national record of $3.65 per gallon, while oil prices paused for the day on profit-taking by traders. A survey by AAA and the OIl Price Information Service showed that regular gas nationwide rose 2.7 cents to a reocrd $3.645 while deiesel prices matched the record average at $4.251 per gallon.

Gas prices tend to lag oil futures prices, so crude oil's move higher is bad news at the pump. Crude contracts hit a record $124 per barrel yesterday, which means that the average price of gas may soon rise to over $4 per gallon. In fact, if the move continues, few can argue that it will be possible for gas to stay under $4 per gallon.

Things will only get worse with analysts at some investment banks predicting $150 to $200 per barrel oil prices within two years. These forecasts were issued just days after oil hit record highs and are backed up by economic forecasts showing consumption in China and other developing nations on the rise.

Many other analysts insist that trader speculation is the only reason that oil prices so high. In fact, some say that there is little reason for oil to be above $60 per barrel.These are the same analysts that insist that the dollar's decline is the real reason behind the spike in oil and an upcoming rebound could relieve oil prices quickly.

So, how high will gas be over the next few months? That remains to be seen...

The consumer confidence survey from the University of Michigan found that consumer confidence is now at its lowest level in 26 years. The survey found that high food and fuel prices, combined with shrinking incomes and falling home values have caused many consumers to save their money rather than spend it. The indicator fell to 53.3 in April, which marks a 6.9 point decline from the previous month.

The economic stimulus rebates due to begin arriving in mailboxes next week should help boost spending temporarily, but a continued rise in food and gas prices will continue to cause consumers to spend less money. Moreover, the survey found that only 30% of consumer plan to spend their upcoming tax rebates, while the rest said they would use it to  pay off debt or put it into savings.

The survey also noted that 90% of consumers believed the economy was in a recession and 75% believed the economic problems will persist for another year. Finally, a third of those surveyed said that they were reigning in spending because of uncertainty about unemployment and income.

In the end, this is bad news for the economy that continues to struggle with a variety of problems.

Bank of America said that it will begin implementing new lending guidelines following its acquisition of Countrywide Financial. The biggest change will be the fact that the bank will no longer originate subprime mortgages that were the hallmark of the troubled Countrywide. It will also discontinue all nontraditional mortgages where monthly mortgage payments may not cover all interest and will curtail low-documentation loans.

The bank also plans on helping those already affected with such loans. Bank of America said that it would limit prepayment penalties as well as interest-only and hybrid adjustable rate mortgages. It will also provide $35 million in grants and low cost loans to assit loacal and national nonprofits engaged in foreclosure prevention and to purchase vacant single-family homes for neighborhood stabilization. These will be done through the Bank of America Charitable Foundation and Countrywide.

"We think it's important to clearly explain the changes in mortgage lending practices once we operate as a combined company," said Bruce Hammonds, global consumer credit executive at BofA. "We recognize this tightening, by definition, restricts the availability of credit to some borrowers. However, this will help ensure that those who get loans can afford to repay them."

Bankruptcy filings in Wisconsin jumped around 30% in the first quarter of the year as higher fuel and good costs continue to pressure consumers. Meanwhile, rising mortgage payments and lower property valuations have taken away much of the cushion that consumers often rely on in tough times. The figures aren't that different from the national average, however, which saw a 27% increase from January through March compared to the same period last year. Court records showed that there were 4,570 bankruptcy petitions in Wisconsin through March.

Many consumers are beginning to feel the heat as a perfect storm of factors combined to cause troubles that are too great to handle. Higher fuel costs were sparked by the lower dollar and supply problems abroad. Meanwhile, higher food costs come amid a world food shortage sparked by the incentives offered for corn being used in ethanol. The corn being used for the gas is being taken away for usage in food, which includes usage in corn and beef products. Meanwhile, continued housing troubles have eliminated the ability to draw on home equity lines of credit and resulted in higher monthly payments.

The credit crunch has many consumers prefering cash over credit cards when spending. The trend is most visible in the UK where the British Retail Consortium conducted a recent survey showing that cash is now used for 60% of all purchases in the UK, which is up from 54% last year. And measured by value, cash is used for 34% of retail spending compared to 32% a year ago.

The news comes after many consumers are struggling to pay credit card bills that they racked up during times when home equity loans could be drawn upon to help out. Meanwhile, many credit card companies themselves are being a bit more particular about who they offer credit cards to in the first place.

Credit cards can be a very useful tool that allow consumers to take out a "free" loan for a month as long as they pay the bills back on time. Any failure to do so can result in substantial fees that can quickly turn the free loan into interest rates that most loan sharks would settle for.

Paying in cash also has several other benefits. For one, it helps many people realize just how much they are spending on a daily basis. Paying with a credit card makes is a little too easy to notice just how much money is being spent. Meanwhile, paying with cash also avoids any chance that you'll incur late fees or charges that are associated with credit cards.

Fraud among debt relief companies is running rampant these days and it is becoming more important than ever to do your homework before seeking advice. Debt-Set Resolve Credit Counseling is the latest company to be hit with scandal after the Federal Trade Commission alleged that it violated federal law by falsely claiming that it could reduce consumers' credit card interest rates or the amount of their credit card debt.

According to the FTC complaint filed in March 2007, Debt-Set sold debt reduction services through websites, television and radio advertisements with claims such as "Reduce Debt Now" and "Eliminate Harassing Calls". When consumers called the toll-free numbers, they were encouraged to enroll in a debt consolidation program if their unsecured debt was up to a month overdue or a debt settlement program if it was overdue longer.

The FTC alleged that Debt-Set violated the FTC Act by falsely promising to obtain lump-sun settlements, such as "fifty cents on the dollar" or "50 to 60 percent" of consumers' total unsecured debts. The complaint also noted that the company misrepresented that they would not charge consumers any up-front fees before obtaining the promise of debt relief and that participation in the program would stop creditors from calling or suing them.

In the end, debt settlement and similar services can help reduce debts of 40 to 60 percent, but it is only a possibility, not a promise. Consumers that are in trouble should seek out companies that take the time to explain the process and remain upfront about any fees or other charges that come as a result of using such services.

Developing countries now produce nearly half of all American imports, and rising inflation is making these products more expensive. The currencies used in many developing Asian countries, like India and Vietnam, are quickly appreciating. Many common imports, like electronics and fabrics, may face price hikes as a result. This may be sooner than later as inflation continues to increase at a rapid rate. Unfortunately, it comes at a time when consumers are already feeling the heat from rising domestic prices.

From the New York Times:
The free ride for American consumers is ending. For two generations, Americans have imported goods produced ever more cheaply from a succession of low-wage countries — first Japan and Korea, then China, and now increasingly places like Vietnam and India. But mounting inflation in the developing world, especially Asia, is threatening that arrangement, and not just in China, where rising energy and labor costs have already made exports to the United States more expensive, but in the lower-cost alternatives to China, too.

Many government grants are available for debt relief- the key is being able to find them. The key is to be creative. For example, using government grants to buy or start a business can enable you to put the profits from the business to work paying off your debts. The big hurdle is proving that you cannot repay the amount you owe and still maintain the same level of debt, then you may qualify for a grant to get started.

From eZineArticles.com:
When looking to pay off credit card debt, one of the most overlooked options many people have are government grants. Many people do not look into these grants because they simply do not know about them. However, the government sets aside billions each year just for this purpose, to give them away. If you are one of the millions of people who are suffering from credit card debt, you definitely want to consider applying for a grant from the government.

Food prices are rising faster than ever before and consumers around the world are starting to feel the effects. Demand for corn due to ethanol has eaten up much of the supply, sending prices much higher. It has also decreased the percentage of the fields dedicated to other plants such as soy beans and wheat. This has led to a similar rise in the price of other foods. Now, farmers are looking to raise their soy bean crops in order to alleviate issues abroad, but it could raise the price of meats and other foods domestically.

From The New York Times:
Faced with strong worldwide food demand and the accompanying higher prices, American farmers are beginning to respond to the signals of the market. In a new government report, farmers said they would make significant cuts in corn acreage this year in favor of soybeans. If they carry through with their intentions, the resulting additional soybean oil could help alleviate global shortages of cooking oil that have led to sharply higher prices, hitting poor countries hard. But a smaller corn harvest would most likely raise prices for that crop, which could also increase the prices Americans pay for meat. Most corn is used as animal feed. Higher corn prices may also compound the difficulties of companies that use corn to produce ethanol as a motor fuel. Despite government mandates for the use of ethanol, those companies are struggling. They expanded so rapidly in recent years that an oversupply of ethanol depressed prices, even as the cost of their main feedstock — corn — was rising.

J.C. Penney announced lower earnings today, which signals that the average American continues to struggle to pay the bills. A combination of lower housing prices and a tough credit market has made it increasingly difficult for consumers to go to the mall and shop. Thousands of others are facing bankruptcies and foreclosures that is further hurting their spending. It could be awhile before these consumers start heading back to the stores... and that could continue to hurt the retailers.

From The New York Times:
J. C. Penney on Friday slashed its earnings forecast for the first three months of the year by 33 percent, blaming an outright drop in consumer spending that bodes poorly for competitors. The profit warning came as the Commerce Department reported that overall consumer spending had stagnated in February, increasing 0.1 percent. If Penney is feeling the pinch of tightening wallets, investors reasoned, so is the rest of the retail industry.

“J. C. Penney,” he said, “counts half of American families as its customers, and they are feeling macro-economic pressures from many areas, including higher energy costs, deteriorating employment trends and significant issues in the housing and credit markets.”