Investing vs Paying Off Debt
If you carry a balance on one or more credit cards, you're not alone. According to the Federal Reserve, nearly half of American families do.
And nearly half of American families also have some sort of bank savings accounts. If you have savings, should you use that money to pay off your credit cards?
Money Talks editor Stacy Johnson explains (video runs 1:15)
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Remodeling Your Insurance After Remodeling Your Home
The benefits of renovating your home make the expense an intelligent investment, but protecting that investment is paramount. That’s why you should consider remodeling your homeowners insurance as well.
Renovations often result in homeowners insurance coverage shortfalls in two areas: dwelling protection—which involves structural improvements to your home—and personal property protection. Built-in enhancements such as new windows, doors, custom cabinets, granite countertops, bars, islands, and flooring need to be brought to the attention of your insurance agent. You also should discuss any major personal property purchases, including appliances, furnishings, and decorator curtains and blinds.
When insuring personal property—especially appliances and electronics—check to see that your policy covers replacement value of your property, rather than the actual cash value. The actual cash value consists of the replacement cost of an item less the amount it may have depreciated. Appliances and electronics depreciate quickly. The amount your homeowners insurance will pay for a depreciated item usually is not enough to replace it with a new one. Unless you enjoy cruising the thrift stores, you should opt for replacement value. That way you can shop at Circuit City instead of the Salvation Army.
Keeping your homeowners insurance agent in the loop is a good practice in general, but a major remodel should prompt an immediate conversation. If something happens tomorrow, you want to make sure your homeowner’s insurance will replace what you have today—not what you had yesterday.
Myrtle Beach Housing Slump? Homeowners Don't Believe It
Despite numerous reports showing home values in historic decline, more than three out of four homeowners believe their own home has not lost value in the past year, according to an online survey.
The survey was conducted by Harris Interactive for Zillow.com, a Web site that gives estimated home values.
The survey of 1,619 homeowners found 36% believe their home has increased in value, and another 41% believe their value has stayed the same. Only 23% believe their home has lost value.
Figures from the National Association of Realtors show that the median price of an existing home sold in 2007 fell 1.4% from 2006, the first decline in that key price measure the trade group has ever recorded.
We'd love to hear what you think. If you're a homeowner, do you feel that your home has decreased, or increased, in value? Leave us your comment at the "comment" link below.
Foreclosures Up 75% in 2007
The number of foreclosures soared in 2007, with 405,000 households losing their home, according to a report released recently. That's up 51 percent from the 268,532 homes that were repossessed in 2006.
Total foreclosure filings soared 97% in December alone compared with December of 2006, according to RealtyTrac, an online seller of foreclosure properties. For the year, total filings - which include default notices, auction sale notices and bank repossessions - grew 75%.
More than 1 percent of all U.S. households were in some stage of foreclosure during 2007, up from 0.58 percent the year before.
The increase in foreclosures has come about despite very low interest rates, as well as government, private enterprise and community advocate efforts to forestall the worst of the problems.
This is because sales are very slow in many housing markets and prices are down, leaving many troubled borrowers unable to sell in order to repay their mortgage debts.
Lending or Borrowing from Family?
Trying to buy a home but don't know where to go for the down payment?
There are few people who haven't considered a loan from a family member. But before you tread this potentially perilous path, consider getting some outside help.
Our Money Talks editor Stacy Johnson offers some tips in this video about lending to or borrowing money from family members.
Have you loaned money to, or borrowed money from a family member? How did it go? Leave us your comment below, and remember, your family member will not know you commented here. 
