Your Credit Card Companies - Don't Pick up that Phone!

Something interesting has happened to credit card companies during the recession. They've become more interested in collecting the money owed to them than retaining customers. If you use your credit card, either personal or business, to finance a portion of your firm's operations, you have always been advised to call your credit card company if you have a problem making a payment or if you want to negotiate a lower interest rate, a lower settlement amount, or a lower minimum payment.
Times have changed! Don't make that call. Credit card companies are using any excuse to close your account, raise your interest rate, or just doing something adverse to your situation.
It's a good time to fly under the radar with your credit card companies. If you call attention to yourself, credit card companies are just waiting to cancel your account, lower your credit limit, or raise your interest rate if there is even one late payment or you express that you are in any financial distress of any kind. The traditional advice of working out a deal with credit card companies doesn't hold right now.
Unless you want a possible flag or black mark on your credit or a drop in your credit score, don't call your credit card company. Make your payments and try to bear with the interest rate for the time being. When the recession is over and lending is back to normal, then you can call them with your concerns or requests.

Drop in Unemployment Rate Reported, but is it Actually Good News

Everyone was dreading Thursday's unemployment rate report, fearing higher unemployment numbers. We were all in for a surprise! The unemployment rate actually dropped from 9.5% to 9.4%. The stock market soared on the news and there was initial jubilation. But, why did the unemployment rate drop when almost 250,000 jobs were lost? When you think about it, that doesn't make sense.
One theory is that there is a substantial population of the unemployed in the U.S. that have quit looking for a job and are simply going to sit it out until things get better. That theory is supported by the fact that the U.S. labor force shrank during the month. If the labor force shrinks, the unemployment rate drops. A shrinkage of the labor force isn't good news.
The real good news about unemployment news this month is that the job loss of around 250,000 this month is the smallest in one year! Maybe the recession is easing.

Cash for Clunkers Program Will be Extended

The Cash for Clunkers program was extended by the Senate on Thursday night and will likely be signed by the President on Friday. If you need a business vehicle and have a vehicle that gets less than 18 mpg to trade in, now is a great time to make that trade. Of course, you have to trade for a vehicle that is more fuel efficient.
If your business is not incorporated, you can use the vehicle for personal use as long as you divide up your mileage correctly on your tax return between personal, commuting, and business miles.

Negotiate a Flexible Work ScheduleWhether with off-peak hours, a compressed work week, or working from home and telecommuting, the advantages of flexible work schedules for employees - particularly working mothers - are clear and well-documented. But there are also benefits for employers. Here's how to pitch the idea.