The government is currently working on the rescue plan that they hope will save our economy. Meanwhile however, this plan may lighten the credit crunch but will, most likely, not immediately effect the housing slump that we are currently experiencing.

It has been forecast that the housing market will probably not begin returning to normalcy until mid 2009 or later. At this time we have many sub-prime mortgage borrowers going through foreclosures. The really unfortunate part is that the economy is so bad that we now have prime mortgage borrowers experiencing foreclosures and losing their homes. This, of course, has the potential to drive prices down even further.Being near a foreclosed home is a negative for any neighbors. Being surrounded by them almost guarantees your home value is sinking weekly and there is nothing you can do.

The areas of our country leading the way in home foreclosures are the same areas where prices rose at the fastest rate over the last few years. In August, California had one-third of all foreclosure activity, Florida was second with 14.5%, followed by Arizona, 4.7%, and Nevada, 3.9%.

The rescue package will most likely not resolve the housing market problems at this time, but they would most like be considerably worse if no package was passed by the government.

There is no doubt that layoffs are looming, leaving people without incomes or health insurance, and hard economic times are ahead for all of us. We can only hope that our economy will bounce back in the future and return us to the standard of living we’ve all been enjoying for many years. Meanwhile, it is time for everyone to stay constantly aware of their financial situation.

The fastest growing crime in today’s world is identity theft and we are all vulnerable to the possibility of becoming a victim. Sometimes, this is out of our control as our debit and/or credit cards can be compromised through merchants we have entrusted with our personal information. Of course, we all try to protect our cards and pin numbers from everyone possible. But some of our information is available to others and we need to always act wisely to secure it as much as possible.

One of the ways many people are trying to avoid identity theft is by using shredders for personal information disposal. Items that should be shredded are junk mail and old papers including a birth date, signature, or account numbers. It goes without saying that you would shred anything that contains passwords, personal identification numbers or your social security number, with the exception of your Social Security card. It is always a good idea to shred credit card receipts and deposit slips. Other items that you should consider shredding would be preapproved credit card applications, and expired identification health insurance bills and any cards such as driver licenses and passports. Also destroy old canceled checks not needed to support tax documents.

Vigilance toward securing your paperwork will pay off in the long run. People who have had their identity stolen tell horrendous stories of how many months or years it takes them to get everything corrected. It is a terrible situation to be in and, yet, we all tend to believe that it will not happen to us. That, of course, is not necessarily true. So a good shredder can be a very worthwhile investment.

At this point in time, many of us wish that we did not have a mortgage on our homes. If that were the case, we wouldn’t have to worry about foreclosures and we’d be comfortable knowing that we were safe in our home environment.

Today, approximately 31.8% of homeowners do not have mortgages. I doubt that anyone would have guessed that the number would be that high. The other surprising fact is that the majority of these mortgage-free homeowners are low income families, not the wealthy. They live on extremely tight budgets and often do not even carry health insurance.

The rich generally carry high mortgages because of the tax benefits available to them. When you consider the tax deductions, it’s the least expensive way for the homeowner to borrow money. The typical family of four with an annual income of $100,000, who purchases a $500,000 home, can realize a tax savings of almost $6,000. This would be true if they obtained a mortgage for 80% of the home’s value at a rate of 6%. If they actually had this $400,000 and invested it in a mutual fund with a 10% return, they would have made a very wise financial move.

The low income family who eventually may become mortgage-free, generally purchases an inexpensive property, many of which frequently do not qualify for mortgages. Mobile homes, for example, will not generally qualify for a conventional mortgage. People with low incomes who may well have a shaky credit history, will not qualify for a mortgage. People in these situations generally will turn to relatives to help finance their home, paying them back over time. Eventually, they will become mortgage-free.

In addition to the very low income group, many others who are mortgage free have long been against carrying debt. Still others without house debt are the elderly because they have either traded down to smaller homes, or have long since paid off their original 30-year mortgage.

The shame of the matter is how we treat the elderly people in our society. As we age, we do not always understand what is happening. We are comfortable with our own surroundings and dislike change in our lives more and more with each passing year. It is, therefore, unforgivable for companies to change their rules and uproot senior citizens who are well settled in their environments.

I recently read of an 86-year-old lady who moved to an assisted living facility five years ago fully expecting to spend the remainder of her days in this home. Four years later, the facility notified the lady’s daughter that she would need to move and it must be within the next two months. The elderly resident did not understand and was extremely upset about being relocated away from her friends and familiar atmosphere.

Apparently, the owner of the facility decided that they would no longer accept funding from Medicare and this was how this resident’s bills were being paid. It would seem to be more in the interest of their residents to make new rules effective when made, instead of being retroactive so that they must displace people who believed they would live in their residences for the remainder of their days. They entered into a contract with these people and should be forced to uphold their end of the bargain and not be allowed to change the rules midstream. Profitability should not be the only consideration. This poor woman keeps asking her family “why can’t I be where I used to be?” This is an extremely sad tale and we really must do more for the elderly in our society to protect them from this type of treatment.

Home improvement companies are a large part of the economic picture. Many people are not do-it-yourselfers and hire people to maintain their home. This has been the case for many years and the home remodeling industry is very large. Suddenly, the market has shrunk and there is not enough work to go around.

Homeowners who are interested in remodeling are finding that it is a buyer’s market. Business is slow and contractors are often forced to cut expenses such as forfeiting their health insurance plans. A good number of them are willing to cut their prices just to obtain work. Many homeowners are scaling down their plans. A family considering remodeling a bath, for example, will settle for a new vanity and a coat of paint. The larger jobs are being put on hold as people consider the impact of their investment and whether or not they will get their money back when they sell.

Estimates are that investments n home improvements and maintenance is expected to drop 4% this year compared with 2007. It is also anticipated that 2007 levels will not be seen again until 2010. Meanwhile, many contractors are trying to survive in this new environment.

Companies catering to high end clientele are surviving and profitable, however, it is those who cater to the middle income homeowner who are feeling the pinch the most.

It will take a recovery in the housing market in general to improve the situation in the home improvement and remodeling industry. We are all hoping that this is just around the corner, but realize that it may take some time to materialize. Meanwhile, contractors, as so many others, will just have to try to hang on and be ready for the upswing when it does come.

Millions of people in the world today suffer from severe asthma. Even those with milder cases are constantly fighting the battle to stay well and breathe freely. Whether you are insured through a private health insurance plans, or Medicare, your goal is always the same. To stay healthy and avoid serious attacks is every patient’s objective.

When trying to enjoy the beach or a mountain hike, you are always concerned that an asthma attack could be just around the corner. Should you stay home or leave on a trip? Monitoring the weather can help someone to avoid being out at particular times and plan their activities in accordance with the air quality forecast.

The Environmental Protection Agency (EPA) provides information on national and international air quality forecasts which rate air pollution, health effects at specific levels, and any applicable advisories.

A website knows as Azma.com allows asthma sufferers to enter their zip code and then provides them with air quality levels for the next four days. This site also provides alerts by e-mail for times when your condition will require attention.

As always, the web is a great source of information and can provide vast knowledge on any subject of particular interest to you.

My local realtor sends out monthly letters on a variety of “value” topics. She believes that the information contained in these letters are things her customers should be aware of for their own benefit. I have seen articles on health insurance plans, home improvements that pay good returns, and, now, sound financial management. Meanwhile, of course, the articles she forwards also serve to remind us of her availability to service our real estate needs, along with those of our family or friends.

This month’s “value” subject is about sound financial management and possibly paying down your mortgage. The article first asks that you consider the following:

Begin your future planning by paying off credit cards with a large balance and high interest rate.

Be prepared for the unexpected costs. Have emergency funds set aside that you can handle whatever comes your way.

Always make retirement plan contributions. This is the best way to plan ahead while growing your assets.

Be sure to plan ahead for major expenses, such as college tuition or new business ventures. Be financially prepared for these events.

Once debt has been reduced and future expenses have been allotted for, it is time to work towards paying off your mortgage. Here are a few different ways to approach this goal:

Biweekly payments result in 26 payments per year. This extra annual payment will help reduce your mortgage debt.

You can transfer your biweekly payment into a separate account and then withdraw your monthly payment from that account. Gradually, you will accrue an additional monthly payment, plus you will be receiving interest on these funds.

Any additional money you receive during the year (tax refund or job bonus) should also be set aside. Be certain to specify that the money should be applied to principal.

Every small contribution towards your mortgage debt brings you closer to your goal. If you pay an additional $20 per month on a $100,000 loan at 6.5%, your savings will be $13,000 over the life of the loan. Wise financial planning can help you reach your goal.