Although it leads in market share locally, customers may believe it is less safe
Wachovia’s well-known financial woes and its pending acquisition by Wells Fargo are providing an opportunity for competitors to do their darnedest to capture some of the Charlotte bank’s customers.
“You have one of the best franchises in the Carolinas being acquired by a West Coast bank,” said investment banker Bill Wagner of Howe Barnes Hoefer & Arnett in Raleigh. “It’s an opportunity for all banks.”
Wachovia is an especially enticing target in the Triangle, where it ranks first overall in market share based on deposits — No. 1 in the Raleigh-Cary metropolitan statistical area and No. 2 in the Durham MSA — according to the Federal Deposit Insurance Corp.
“You hate to think you are profiting when someone else is down, but yes, it will benefit us,” said Gregg Strickland, CEO of Patriot State Bank in Fuquay-Varina.
Wachovia, as well as most of the other large banks in the area, has already seen its market share slowly erode in recent years as expansion-minded community banks have encroached on its turf.
“With our [leading] market share, we always have a target on our back,” said Jack Clayton, Wachovia’s regional president. He also contends deposit data don’t give the complete picture, because they don’t include money that customers invest through Wachovia.
Industry analysts say it’s unlikely competitors will try to lure Wachovia customers by substantially raising interest rates on deposits or lowering fees. Nor are they likely to resort to gimmicks.
“What they are selling is security and strength,” said Buddy Howard of Equity Research Services, a Raleigh firm that tracks the banking industry. “They are not going to get a customer to deposit a bunch of money with you for a free toaster, if [the customer] doesn’t think their money is safe.”
Current ad campaigns by several local banks pointedly focus on financial strength, safety and stability. The ads don’t mention Wachovia, but the underlying message is that “these are things that do not apply to … the Wachovia of 2008,” Howard said.
A SunTrust ad that appeared in The News & Observer and elsewhere even goes so far as to say, “When you’re ready to switch accounts, we’re here to help.”
John Stallings, who heads SunTrust’s Central Carolinas region, said the campaign isn’t aimed solely at Wachovia customers. Rather, he said, the volatility in the banking industry is putting a lot of customers in “shopping mode.” SunTrust is No. 1 in market share in Durham and has more branches in the Triangle than any other bank.
Stallings said that, beginning last year, SunTrust also stepped up its efforts to call on wealthy individuals and businesses who aren’t clients in hopes of converting them.
“The way we win business is where we’re in front of clients and they have a chance to hear our story, our capabilities, our expertise, etc.,” Stallings said.
Read More:News & Observer
Make Smart Spending, Saving a Family Resolution
(ARA) – With the economic crisis hitting everyone in the pocketbook, it’s more important than ever for parents to talk to their children about how to manage money. New Year’s — a prime resolution time for millions of Americans — is a great time for children and their parents to learn better spending and savings practices together.
Forty-six percent of American families hold a credit card balance according to the U.S. Census Bureau’s 2004 statistics. And in 2007, more than 800,000 bankruptcy cases were filed in the United States.
Managing money is a family affair. By resolving to set financial goals and working together to practice management, families can enjoy independence and security. “Parents and their children can learn from and challenge each other to plan better ways to use the money they earn and save,” says Scott Oberkrom, director of Community Investments at American Century Investments.
As families sit down to discuss their financial resolution, they need to determine how the changes will affect each member. Once the resolution is finalized, post it in a public place so all members can see it every day. Visit www.YesYouCanOnline.info to learn more on how to make sure resolutions stick.
Some tips families can incorporate into their smart money management resolution include:
1. Financial responsibility starts with examples from home.
Parents need to evaluate their budgets and make wise spending choices — don’t buy a new speed boat if you just told the kids you couldn’t afford to get them a new iPod. Share the family budget with your children to demonstrate how money doesn’t grow on trees and the family has regular expenses that must be paid.
2. Set up allowances for children.
Once your children are old enough to understand basic math, an allowance can help them learn how to budget, spend and save. Parents can also set up allowances for themselves. Showing the children that Mom and Dad fit haircuts, buying lunch or shopping for new clothes for themselves within a weekly cash budget gives children the best example of wise money management.
3. Take a trip to the bank and organize savings accounts.
Children — and many adults, it seems — need to be taught how to save money. Take the whole family to the bank to set up savings accounts. Decide as a team what goal you’re saving toward. Parents should consider saving to help secure the family in case of a financial crisis. Kids’ accounts could be earmarked for college tuition or to buy their first car.
4. Teach kids creative ways to earn money.
A hobby could become an income-generator for all members of the family. Perhaps you have a tremendous green thumb. And maybe you have your children help tend the vegetables and pull the weeds in the garden. The entire family can turn this hobby into a small income by taking the produce to farmers markets or setting up a neighborhood stand.
All New Year’s resolutions take work, but they can be accomplished if all family members share in the effort. Having all family members work together, giving encouragement and little reminders, also can help you stay on track.
“Setting goals, both at New Year’s and throughout the year, is one way people can achieve their dreams,” says James Stowers, founder of American Century Investments. “As I reflect on what I have learned through the years, I am convinced that anyone — and I mean anyone — can become what they are absolutely determined to be.”
Make 2009 the year your family resolves to take charge of your money management together. Visit www.YesYouCanOnline.info for additional tips.
Courtesy of ARAcontent.com
CARY, N.C. – Michael G. Carlton, president of Crescent State Bank, a wholly owned subsidiary of Crescent Financial Corporation (NASDAQ Global Market SM), has announced the release of an audio podcast discussing Fighting Fraud, the first event in Crescent State Bank’s Centsibility Series. In the podcast, Jo Sorbi, security director for the bank, describes what attendees can expect from Fighting Fraud, an event designed to educate the community on the dangers of identity theft. Sorbi provides a list of sensitive material attendees should bring to shred in addition to an overview of future events scheduled for the Centsibility Series.
Fighting Fraud will take place on Thursday, Oct. 16 from 4 to 7 p.m. at the Cary Chamber of Commerce, located at 307 N. Academy St. This community event will focus on the importance of discarding personal documents and sensitive material properly. The event will include a Shred-a-thon and Fighting Fraud Seminar, featuring a panel of fraud experts. The Centsibility Series, not just for clients, is designed to educate seniors, families, and business owners on a variety of financial topics such as identity theft and fraud.
The podcast is available for download at http://www.mmimarketing.com/files/josorbifightingfraud.mp3.
Read More:CarolinaNewsWire
Rising prices, depreciating property values and stagnant salaries are forcing many American homeowners to sell their homes.
(NewsUSA) - For many Americans, good credit isn’t here to stay -; rising costs are putting many formerly well-to-do homeowners behind on their mortgage payments.
In April 2008, delinquencies on prime loans, a $12 million dollar market, doubled. And the economy doesn’t look to have an upswing anytime soon. Home prices continue to drop. In July, the unemployment rate reached a four-year high. Homeowners face higher bills but make less money.
Adjustable mortgages, which were appealing when property values were on the increase and interest rates were low, now mire many Americans in financial danger zones. Some borrowers will see their interest and principal payments more than double even as their homes lose value. Many homeowners will not be able to cover their debts even if they sell their homes.
At the same time, banks feel more reluctant to approve or refinance loans. In this environment, default and bankruptcy rates look likely to increase. Between April and July, California alone reported 121,000 notices of default on loans.
Some companies are looking to navigate the down housing market, not only to turn a profit, but also to help homeowners recover their homes. For example, Deer Park Development Corporation, a Nevada-based company, buys foreclosed homes in Arizona, Nevada, California and Florida. With over 35 years of experience in real estate, the corporation’s brokers and agents know how to identify the homes that will turn a profit.
When the company finds a promising home, it works with the homeowner or bank to purchase the home at a 50 percent discount. The company negotiates with homeowners so that people can rent their homes after the sale. When the lease expires, Deer Park Development Corporation allows former homeowners to repurchase their properties at a predetermined price.
Currently, the company is searching for investors looking to profit from the down housing market. For more information, visit http://www.deerparkdevelopmentcorp.com .
(ARA) - Times are tight for Americans. Around every corner lurks more news about rising fuel prices, expensive food and families forced to leave their homes to make ends meet. According to RealtyTrac, home foreclosures in the first quarter of 2008 increased 23 percent from the previous quarter and jumped 112 percent from the first quarter of 2007. These increases in foreclosures have given rise to an unexpected problem: pet abandonment.
There are no figures to estimate the number of animals being abandoned or surrendered due to current economic hardships, but animal shelters across the country are taking in more animals every day as families find themselves without other options. Some families are taking advantage of shelters to temporarily board their pets with the hope of picking them up in a few days or weeks. Meanwhile, local authorities are seeing an increase in the number of pets being abandoned by their owners.
In Arkansas, three dogs were found starved to death in their kennels. The homeowners had left the dogs behind when they moved. Two dogs in San Diego were left at a vacant home for several months, but survived. In Downy, Calif., four birds were found abandoned in their cages.
But abandonment is never the answer, animal welfare experts say. “Whether it’s asking a friend to pet sit, finding an apartment that accepts animals, finding a local shelter that can help or asking your veterinarian for low-cost boarding, there’s always a humane option,” says Allie Phillips, director of public policy for the American Humane Association, the 130-year-old child and animal welfare organization.
To help struggling families find options, American Humane has put together a list of tips to help homeowners either relocate with their pets or find other safe placement options for them. Some of those tips include:
* Look for apartments and rental homes that will take pets.
* If you cannot take your pet, ask your veterinarian if you can receive low-cost boarding for your pet or set up a payment plan.
* Check www.petfinder.com for a list of shelters and rescue organizations in your area that can help board your animal or will accept it for adoption.
* Strongly consider taking your pet with you. The comfort and companionship of pets can help ease the strain of a move.
“There’s a lot of news about the stock market and a struggling economy lately, but it’s not the economy that’s struggling. It’s you, us, our friends and neighbors,” says Marie Belew Wheatley, president and CEO of American Humane. “It’s a tough place for any family to find themselves. Bills need to be paid and in order to make ends meet, sometimes sacrifices have to be made. It’s not easy, but pet abandonment isn’t the answer.”
Tip sheets for homeowners looking for ways to keep or care for their pets during a foreclosure can be found at www.americanhumane.org. Also available online are tip sheets for bank and mortgage companies that may find abandoned pets in vacated homes. In addition, local animal shelters may be eligible for grants from American Humane to help families stay with their pets.
Neighbors Can Help, Too
Often a neighbor can help authorities and animal welfare groups spot an abandoned animal before it’s too late. Neighbors should listen for animal sounds, look in windows, check with other neighbors and be on the lookout for signs that the previous homeowners had pets. If pets are known or suspected to be on the property, animal control should be called immediately. With a neighbor’s help, animal control can get a search warrant to enter the home and check for pets that are abandoned or neglected.
American Humane is quick to point out that animals left behind or simply set free will probably not survive. It can be weeks or months before a bank or mortgage company will visit an abandoned home to make an assessment or a neighbor notices that pets are trapped in a house. That’s too long for any animal to go without food and water. If abandoned, there is also a chance that the state criminal animal-cruelty laws might apply, even if arrangements are made for somebody to feed and water the animals after the home has been vacated.
“It’s a terrible situation for any family to find themselves in, but to leave an animal behind only makes it worse,” says Belew Wheatley. “It seems when times are tough we find the best in our friends, family and neighbors. If they’re unable to help there are always other options, from a vet to a local animal shelter. These are our family pets, and they count on us to take care of them.”
Visit http://www.americanhumane.org for more information.
Business debtors should seek professional help.
NewsUSA) - For any business, expenses add up. Owners must juggle payrolls, rents, taxes, and supplier debt -; along with their business loans. Surprisingly, many business owners do not realize that proven steps are available to assist their dilemma of what to do when bills can’t be paid.
In a tough economy, a business’s finances can change by the hour. Struggling business owners dread facing creditor calls. Owners need to change their mentality; yes, debt can be a problem, but it’s a problem that can be approached and solved with strategic thinking.
Professionals have come up with six steps that help identify plans for business debtors to use while increasing cash flow. Business owners in debt should discuss these steps with their lawyer, accountant or trusted advisor to help determine the most beneficial plan.
Listed from most to least desirable are the courses of action your business can use to resolve its debt problems.
- Rehabilitation. Business owners can save their businesses and pay their debts through extreme cost cutting.
- Refinancing. Business owners can seek new terms for loans, like lower payments that can help free up capital for their business.
- Debt resolution. Owners can delay or attain a more satisfying settlement with their creditors through use of an Authoritative Third Party.
- New equity. Businesses can exchange ownership for capital.
- Sale. Owners can sell their business and use the money to pay off debts.
- Liquidation. Owners can sell parts of their business or their whole business or declare bankruptcy, which sadly will affect owners, employees and their spouses.
Services exist to help businesses recover from debt as an alternative to bankruptcy. One company, Performance Source Inc. (www.performancesourceinc.com), negotiates directly with creditors, enabling a business owner to save time and money and reduce stress. Negotiation results in debt being reduced so that the business may continue and grow with a cleaned-up balance sheet.
Business owners should reach out for professional help before debts become unmanageable. With the right service and correct plan, a business owner can minimize debt while allowing him to do what he does best -; running his business.
As prices increase, money buys less. But one dollar a day can become a nest egg in an IRA.
(NewsUSA) - Americans across the country have noticed that when it comes to groceries and gas, their money purchases less.
The amount of money that used to purchase two gallons of milk now purchases one. Gas prices have almost doubled, increasing costs for those workers with long commutes. Americans find themselves rebudgeting, though their income remains stable.
But with a little financial savvy, Americans can stretch their dollars. Simple changes, like purchasing generic puffed rice instead of name-brand cereals, clipping coupons or buying dried goods in bulk can save money at the grocery store. Keeping tires properly inflated and driving the speed limit can help increase vehicles’ fuel efficiency, leading to lower costs at the gas pump.
The best way to make a dollar more valuable? Save it. In planning for retirement and future expenses, Americans can turn their dollars into considerable nest eggs.
Financial advisors and columnists agree -; saving small amounts of money sooner results in larger net yields than saving more later in life. At age 25, someone saving 2,500 dollars a year in an individual retirement account (IRA) with 6 percent interest will save $437,376 by age 65. Someone starting to save at age 35 will have to put away $4,865 each year to make the same amount by age 65.
It’s never too early -; or late -; to begin saving. One company, Save252, allows customers to contribute as little as a dollar a day, 265 days a year, towards their retirement.
Users specify the amount of money they want to contribute to a regular account or Roth IRA. Save252 automatically withdraws that amount from users’ checking accounts, then transfers the funds. Customers remain in complete control of their savings -; they can, at any time, change the amount of money they want to save, or they can stop payments.
Even people living in lower tax brackets can afford to save for retirement with Save252.
For more information and more money-saving options, go www.save252.com.
(ARA) - From flowers to guest lists, engaged couples spend months planning the perfect wedding. After the vows are said and the reception is complete, most newlyweds are ready to relax. But there are several steps newlyweds should take before their happily ever after can begin.
“Settling into life as a married couple takes some work,” says Lindsey Leesmann, a recent newlywed and contributor to YesYouCanOnline.info. “If you’re taking your husband’s last name, you must complete the name change in several places. You also have to discuss managing money as a couple and learn how to live together.”
Leesmann offers the following to-do list for newlyweds changing their last names:
Obtain a copy of your marriage license
If you stated you’d be changing your last name when purchasing your marriage license, you’ll receive a copy of the license in the mail. This license should be taken to each location on your path toward a new last name.
Go online
Next, acquire a new Social Security card and update your passport. Complete Form SS-5 and take it to the local Social Security office to obtain a new card. The form can be found on the Social Security Administration’s Web site (www.ssa.gov). Your passport can be changed by completing Form DS-5504, found at www.travel.state.gov.
Drive to the DMV
The next stop for newlyweds is the local Department of Motor Vehicles. Each state is different, so make sure to bring all the items required to get your name changed and renew your driver’s license.
Check in at your bank
Most banks simply need a copy of the marriage license and the account holder’s signature to approve a name change. Some may also require your spouse to be present.
Drop by the post office
To change your name at the post office, just pick up a change of address envelope, fill it out and mail it back.
Once the name change is complete, newlyweds can focus on managing money as a couple.
“Money is often a tricky topic for new couples,” says Sam Goller, award-winning author of “Yes, You Can… Achieve Financial Harmony.” “But it’s important to start communicating about money at the beginning of your marriage.”
Goller offers the following suggestions for newlyweds working to manage their finances as a couple:
Determine priorities
Prior to creating a financial plan, talk about your histories with money and what’s most important to each of you when it comes to money.
Find missing dollars
You have to understand your spending habits before you can spend money in a way that helps meet your goals. Consider keeping a spending journal to find out where your money really goes.
Choose a system that works for you
You may prefer to sit down each month as a couple to pay bills and develop a monthly budget. Or maybe one of you is better at handling expenses and prefers to do it alone. Find a system that works with your needs.
“The key to managing money as a couple is to never stop talking,” says Goller. “With shared determination, a plan and open communication, newlyweds have the power to improve their financial position both now and well into retirement.”
For more information on managing money as a couple, visit http://www.YesYouCanOnline.info .
(NewsUSA) - As rising prices leave Americans low on cash, many turn to credit cards to cover expenses. But people shouldn’t use credit cards if they cannot pay credit card bills -; bad credit ratings can create lifelong, devastating effects.
Banks, financial institutions and businesses use credit card ratings to establish consumers’ reliability. People with no or bad credit can find themselves unable to get car or home loans. Landlords and potential employers check credit ratings, too. So, Americans without good credit can have trouble renting an apartment or getting a job.
But people looking to recover from bad credit do not need to declare bankruptcy. With some creativity and judicious spending, people can establish or recover good credit ratings -; and end up with some high-end electronics to boot.
Companies now offer low-rate financing options, which help people buy products while also building good credit.
One company, Pay by the Day (www.abuckaday.com), allows customers to finance IBM computers, Toshiba notebooks, JVC televisions and Canon digital cameras -; along with other electronics, sporting goods and furniture -; for as little as a few dollars a day.
Buyers determine a set amount of money, which is automatically withdrawn from their bank accounts to go towards their purchase. Pay by the Day sends products to homes with no extra money down. The service has no hidden costs. Once people pay off their purchases, they own them completely.
Pay by the Day will approve customers for financing, even if they don’t have good -; or any-; credit ratings. In purchasing a computer or camcorder through Pay by the Day, people can establish or improve their credit ratings.
Having a credit card -; and the credit rating that comes with it -; has become a necessity. For people finding their loan applications and resumes continuously declined due to bad or nonexistent credit, financial recovery can seem endlessly frustrating. But with companies like Pay by the Day offering low-financing options, buying a laptop or television now can help Americans rent apartments, buy homes and cars, or get jobs later in life
(ARA) - As spring home buying season begins, financing options remain available for borrowers who do not have the traditional 20 percent down payment.
“Even with home prices declining in many areas, many families still find it difficult to accumulate a 20 percent down payment,” says Suzanne Hutchinson, executive vice president of the Mortgage Insurance Companies of America. ”Low down payment insured loans are a key financial tool in the overall effort to keep the dream of homeownership alive in a volatile market.”
Although the real estate market is tumultuous, there are still safe, predictable and responsible financing options for buying a home. “Most are better off because the risky, exotic loans have largely disappeared from the market, and also fortunate because more secure loans with tax-deductible private and government mortgage insurance are still available for qualified borrowers,” says Bruce Hahn, president and CEO of the American Homeowners Grassroots Alliance.
And Congress is helping many buyers with a federal income tax deduction for mortgage insurance premiums on home purchases or refinancing starting in 2007. This is the first-ever tax deduction for government and private mortgage insurance.
The tax deduction was first approved by Congress in late 2006 and applied to loans with mortgage insurance that closed in 2007. In an important move to further assist borrowers, Congress voted in December of last year to extend the mortgage insurance tax deduction through 2010 as part of the Mortgage Forgiveness Debt Relief Act of 2007.
The deduction allows households with an adjusted gross income of $100,000 or less to deduct the full cost of their government or private mortgage insurance premiums on their federal tax returns. Families with incomes between $100,000 and $109,000 are eligible for a reduced deduction. On average, the tax break could be worth $350 per taxpayer.
Approval of the tax deduction by Congress — and extending it through 2010 — was strongly supported by a number of consumer, civic, African American and Hispanic groups.
“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down payment,” Hutchinson says.
Buying a home is usually the biggest financial decision for any family. With riskier mortgage financing options, such as interest-only loans and piggyback mortgages, quickly fading from the marketplace, low down payment loans with mortgage insurance remain readily available for qualified borrowers.
An added benefit is that private mortgage insurance can be canceled when the home owner builds up sufficient equity in the home, with nine in 10 borrowers canceling private mortgage insurance within 60 months.
For more information on tax deduction and home loans with low down payments visit www.privatemi.com.
Courtesy of ARAcontent
