According to the S&P Case-Shiller index, which is a quarterly index that measures residential housing price rates in the US, home prices posted a record decline in October, bringing the losing streak to a disturbing 27 months.

Per CNNMoney.com, the entire nation is suffering, but no region worse than the Sunbelt; Phoenix felt a 32.7% drop since this time last year, with Las Vegas and San Francisco not far behind.

Analysts believe that prices will steadily drop throughout the US if the economy is not stabilized over the next 12 months.

According to a recent report published by CNNMoney, America's current economic crisis is forcing aging workers to utilize retirement funds in order to maintain their current quality of life.

With the stock market out of sorts and the holiday season in full swing, those nearing retirement age are putting their savings towards credit card debt and mortgage payments, instead of preparing for the not so distant future.

Disturbingly, 59% of those polled wouldn't even know how to prepare for a time when they may be unable to work or too old to maintain their current jobs and only 31% of workers take part in a 401K program.

Although experts believe an economic upswing could change these numbers, workers surveyed fear that their futures are in jeopardy and hope that the new administration will address this issue in January.

With the American economy in disarray and 19 US Banks closing over the past year, the Bush administration has decided to unveil a plan designed for homeowners that would modify their mortgages and potentially bring some stability to the real estate market.

According to CNN's report, the government's plan will center on Fannie Mac and Freddie Mac, which handled over $5 trillion in home loans and were recently seized by the government due to record losses and potentially misappropriated funds.

Ideally, this plan would reassess home loans based on the individual and convert unaffordable and unreasonable payment plans into something that a family could sustain over a long period of time. This would limit foreclosures, overwhelming debt and even extreme circumstances, like homelessness.

As campaigning season comes to a close and America's prepare for an overhaul at the White House, the stock market also welcomed the impending change, boasting a 305 point rise of the Dow Jones Industrial Average and prolonging its six day streak in the black.

According to a feature on MSN, experts believe that the seemingly endless campaigning by Barack Obama and John McCain did little to help the state of the market, only lending to American uncertainty. Most expect today's decision at the polls to boost the sagging economy a bit, no matter who takes over office.

According to a recent story published by The Wall Street Journal, financial lenders are leery to provide loans to potential car and truck buyers; a move that could send the automotive industry into a major financial slump.

Although those in the market for a vehicle with a high credit rating will still be able to get financing, the current credit and financial crisis has all but ended the possibility for those in the subprime market to acquire auto loans, which experts believe could create a nearly 20% drop in auto sales in the US.

A great way to beat this current trend is to make modest choices when diving into the market for a new car. Stay away from high-concept, flashy and expensive vehicles, focusing your attention on  compact cars with good gas mileage and affordable prices. Though they may not make you the king of the road, you have a better chance to get financed for one. Not to mention that cheaper cars mean cheaper monthly payments, putting even more cash in your wallet.

If you stay away from shady used car salesman and take full advantage of the drop in gas prices (it's almost $2.50 a gallon!), you may just find yourself with a new car and a couple of bucks to spare.

After yesterday's record lows, investors took a bold risk on the stock market today, and it graciously paid off.

According to CNN's report, with Federal Reserve meetings underway and gas prices dropping rapidly, investors were eager to get back into the market, forcing a nearly 906 point rise to the Dow Jones industrial average (INDU).

Although this month has been one of the worst in Wall Street history, experts believe that this eagerness to return to the market may point towards a much needed return to stability.

Despite Monday's exponential rise (a whopping 413 points), things were still out of sorts on Wall Street today. According to CNN's most recent report, the day opened poorly following Wednesday's 500 point Dow drop, but was salvaged by a 135 point increase in the Dow Jones industrial average (INDU), which eradicated some early loses. Experts believe these startling highs and lows are to be expected in our current economic climate.

For renters, your debt is unsecured because no collateral (a home or a car) was used to get the loan. When a debt consolidation company steps in and negotiates the amount owed to creditors, the negotiation will be marked as a settlement. Debt consolidation companies can charge anywhere from 3- 5% of the total debt owed. However, the negotiation will negatively effect your credit rating. The debt will be gone, but the negative credit rating indicates that the debt was not paid back as originally promised.

For home owners, debt consolidation does not require you to take out a second mortgage loan. Through debt consolidation, you can combine all your loans and other debts into one single payment, making it easier to keep track and hopefully end up costing you less.

Debt consolidation companies extend their debt handling services not only to individuals, but also to business enterprises. Many businesses that have been on the brink of bankruptcy as a result of bad credit have sometimes been pulled back by debt consolidation companies. As a business owner, you can still hold on to your business even in the face of a bad debt, thanks to debt consolidation companies.

According to CNN's latest report, the Dow climbed 413 points by today's closing bell. Today's increase has been a ray of hope for everyone-- from brokers to homeowners alike. Also, Ben Bernake, Federal Reserve Chairman, has commented that a second economic stimulus package may be in discussion-- that's music to anyone's ears. 

With the financial sector in turmoil, home prices declining, increasing layoffs and rising costs, there are more people in debt at the present time. As people begin to search for help in relieving their debt, one can become perplexed between debt consolidation and debt settlement; they are not the similar things.

DEBT SETTLEMENT

Debt settlement, also known as debt arbitration or debt negotiation is the fastest and least expensive option to get out of debt without filing bankruptcy. Debt settlement is a process to eliminate your outstanding debts for less than the amount actually owed to the creditors. In this process, you stop paying monthly installments to your creditors and instead save the money. When you have saved at least 40-60% of their original, you start negotiating with your creditors for a settlement.

Debt negotiation services will ask you to pay a service fee each month. The amount differs based on the company and on the amount of cash that you owe. A majority of debt settlement companies do not give monthly payments to your creditors. The cash that you give the debt settlement company is put in a trust account, and then they discuss with the people whom you have to pay money and when there is sufficient money in the account pay off the complete debt.

Once the debt has been paid in full on the settled amount, the creditor will issue a letter to the credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for less than full amount."

Although there are positive attributes that define debt settlement, there are also negative elements to consider and understand. When you enroll with a debt settlement company, you will have negative marks and late reporting on your credit report. However, when you do make these lump payments and pay off the creditors, you are repairing your credit by showing your dedication of paying off those debts.

DEBT CONSOLIDATION

A debt consolidation company contacts your debtors and replaces multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Debt consolidation is also a called consolidation loan. Consolidation lowers interest rates on bills, reduces monthly payments and simplifies your finances.

Debt consolidation loans are ideal for people who have a good credit score because they get lesser interest rates. If you have bad credit, your interest rates may be a tad higher in order to ensure that you do not bail out on payments. Bear in mind that unless you have some form of collateral, a debt consolidation loan may be hard to get.

To fully commit oneself to the debt consolidation process, one must save up the money to make the payoff, which can take a while. This is why debt consolidation companies often cite that it will take 3-5 years to pay off all of your debt, depending on how much you owe.

    There are 2 ways you can structure your debt consolidation:

         1. You can prolong the repayment period of your debts by taking a loan or;

         2. You can look out for repayment rates that are far cheaper and can free you from debt in a shorter time.

It is essential that you compare and contrast the various quotes offered by debt consolidation companies before you make a choice. Some debt consolidation companies may offer loans that have a zero percent interest rate in a bid to rope you in and may up it again the instant you are signed on. Always ensure that there are no hidden charges in the policy or fine print of any debt consolidation company you are considering.

Do not trust all the low interest offers that most debt consolidation companies give as they may be bogus half the time. Avoid debt consolidation programs that try to get you to join one affiliate program or the other. Try to research other debt consolidation options before you make any choice.

For more information, check out these links:

• Debt Consolidation Loan: What You Need To Understand
• Discover Ways To Conduct Negotiating Debt