Most people will consider 2008 as one of the worst periods on record for homeowners. The collapse in the subprime market led to a surge in foreclosures. The increase in foreclosures spooked investors who then pulled the floor out from under the market and caused foreclosures in the broader markets. Finally, this led to lower valuations across the board for the majority of homes in the United States. So, where are home prices headed in 2009?

Many economists believe that home prices will continue to fall in 2009. Ken Rosen, a prominent economist, told attendees at the World Economic Forum in Davos that he expects home prices to drop an additional 6% to 7% in 2009. He believes that the housing market downturn is only ¾ complete and the cumulative slump could reach 24% this year. However, he suggested that the government could take actions to prevent a slump by instituting a foreclosure moratorium to stabilize the economy.

Despite the gloomy reports, there is some positive news in the housing sector that came out today. There was a sharp rise in purchasing of foreclosure properties from banks that were holding them far below value. The good news is that 1 in 6 houses are in foreclosure, so this type of buying could help improve the sector for the rest of homeowners. Higher valuations in their neighborhoods and a stabilization in prices should help improve the long-term value for everyone.

So, expect a decline in the first half of 2009 but the signs of a recovery in the second half of 2009.

There are many tools available for those individuals looking to prepare their own tax returns no matter how high their income. The newest addition to the free filing industry is the IRS’s Free File Fillable Forms (FFFF) service. The service is perfect for individuals that are looking to prepare their own taxes on paper, but those who don’t know what they are doing should stay away!

The website is http://www.freefilefillableforms.com/

The advantages of this new system is that there is no income limit and you can take your time with a saving feature. Meanwhile, there are many forms that are available as part of the package, including rental income, business income, capital gains, farming income, and much more. The disadvantages are that you cannot file the state form electronically and there are no error messages telling you to add forms when needed.

Those looking for more help might be better off with other free solutions, like TurboTax’s free service. This service features a Q&A path, live community support, free audit support, and a cheap state return fee of just $25 per state. Other services include H&R Block’s TaxCut service and TaxAct Online, which both other free federal filings and cheap state filings. Overall, there is a solution for everyone!

American’s wallets are hurting more than ever from the combination of a domestic recession and a global economic slowdown. As a result, many consumers are noticing just how much they are spending on services like cable and television. It may come as a surprise to know that many services like these are actually priced lower than they were last year. So, why are the bills so high? Answer: Extras and add-ons.

The average cell phone costs about $48.50 per month, which is about a dollar a month less than in 2003 with 60% more minutes to kick. However, the average cell phone bill is closer to $76 per month as consumers add on minutes, text messaging, ring tones and games. These extras can end up costing an extra $20 to $30 a month or much more with new smartphones containing applications.

Cable television and internet is a similar story. Costs have actually risen some 20% to around $44 a month, but the average bill is closer to $100, up over 60% since 2003. Consumers are quickly adding new services like digital video recording, extra channels, and other services that have jumped the price substantially from their base levels.

Consumers looking to save money during these tough times may want to consider taking a second look at these services and evaluating whether these extras are really worth the money. Do you need games on your cell phone or the latest ringtones? Do you need HBO at home when you only watch a couple movies a year? Think about it… and save!

The global recession has caused great pains for consumers, but there may be some diamonds in the rough. Consumers may feel pinched more than ever, but many companies are feeling the same way. Cable and phone companies are losing customers fast and investors are demanding more subscribers to their services. As a result, many are willing to negotiate on rates in order to keep customers – good news for your wallet!

Customers looking to reduce their cable or phone bills can simply call up their phone companies and express that times are tough and rates are simply too high. Often times, the companies will negotiate and reduce your bills by up to 50% just to keep you as one of their customers! This is especially true for customers of special offers that are expiring. Many times, companies are willing to extend these special offers indefinitely in order to keep you signed.

Many of the steepest discounts are offered to customers who buy the so-called triple-play bundle of television, internet and voice service, since customers pay the most for all three. Comcast now offers economy bundles that include scaled down efforts while phone companies are quickly reacting to save customers as they migrate to the new services. Additionally, many new cheaper services are being offered to help consumers save in today’s environment.

So… what are you waiting for? Give you phone and cable company a call today!

Many employees are expecting a pay raise this time of year, but it’s hard to ask for a raise when layoffs are taking place. In reality, it isn’t unrealistic to expect a salary increase, but you may have to justify it more than in previous years. Also, don’t expect too much, especially if you work for financial firms or others affected by the economic downturn.

Most raises will be reserved for top performers that directly help improve profits, so if you plan on asking for a raise make sure that you can make a strong case. Start by preparing a list of accomplishments as well as other ways that your performance has been above average. If you aren’t a salesman, outline ways in which you have helped the company boost profit margins.

Instead of thinking of this environment as a threatening one for employees, it is important to realize that employers want to hold onto strong workers. As a result, they may be willing to increase compensation to valuable people. After all, they have fewer people, higher costs and thinner margins, so those that can step up and contribute are extremely valuable.

That said, if your company is in the red and massive layoffs are abound, it may be prudent to put off requests for a raise until the business begins to stabilize. Similarly, if your firm was recently acquired, it may be wise to hold off on any requests as you may be on the bottom of the totem pole. In some companies like these, you may be lucky to have your job!

Tax season may get a little more confusing with President Barack Obama’s new economic stimulus plan with new tax provisions – but don’t get confused. Here are three tax tips to get you started this year:

1. Prepare Your Write-Offs: Independent contractors and business owners should begin collecting their business expense deductions and getting them in order before tax season starts. If you didn’t record your odometer reading on January 1st, check it now and estimate how many miles you’ve driven. Also, collect your receipts so you are prepared when you accountant calls!
2. Figure Out Your Children: Many divorced couples take this time of the year to fight over who gets to take the dependency exemption for their children. Now’s the time to resolve these issues early, have you ex sign a Form 8332 to release their claim, and get it out of the way.
3. Get Your Homeowner Benefits in Order: Americans that purchased a home last year for the first time are entitled to a credit worth up to $7,500. In fact, if you plan to buy a home before July 1, 2009, you may want to delay filing your tax return until your purchase goes through so you can claim it on your 2008 return.
   

Overall, tax season can be stressful for almost all Americans, especially with changes in order with the new President Obama. However, taking actions now can reduce your stress in the future and ensure that you minimize your tax exposure!

Technology can be more than just entertaining; it can help you save money on a daily basis! There are many new web applications that can help you reduce your debt, reduce your phone bills, eliminate your cable bills, and much more! Here are our top three applications that you should consider:

1. Hulu.com – Hulu.com provides online television shows streamed over the internet. With hundreds of shows and movies available for free, some people are finding little need to pay their cable bills or watch television!
2. Skype.com – Skype.com is a voice over internet service that can let you keep in touch with family for free or a very modest fee to call a physical phone. You can even purchase a Skype phone, so you don’t even have to use the computer!
3. BillShrink.com – BullShrink.com is a comparison service that can help you lower your bills by finding products and services priced better than what you currently use. It only takes a few minutes to save a lot of money using services like this one!
   

Thirty-year home loans are running under 5% right now, which is down from 6.4% as recently as last summer. These rates are lower than they have ever been and many homeowners are flocking to refinance their homes. In fact, the boom has created a new source of business for mortgage brokers who have struggled with the slower housing market.

So, when should you refinance your home? The first thing to consider is whether or not you even need to refinance your home. Those who plan to pay off their loan over the next few years have no reason to refinance because they won’t be paying monthly bills long enough for the savings to cover the costs, which often reach around $2,000 or so.

On the other hand, those homeowners with an adjustable-rate mortgage should strongly consider refinancing. ARMs are a very risky mortgage because interest rates could go higher and your monthly payments could skyrocket as a result. Refinancing into a 30-year fix-rate loan may not cut monthly payments much by now, but it would reduce risk over the long-term.

As a rule of thumb, homeowners should look for a payback in a couple of years. Generally, if you can earn the costs of earn the costs back within two or three years, and it’s a home that the homeowner’s prepared to own for much longer, then refinancing is a good idea.