Increased in Foreclosure Rates Affected Homeowners’ Holiday Plans

Christmas is the season to be jolly because families gather together and give gifts to each other. However, with the economic crisis that caused home foreclosures and layoffs, many Americans feel that this Christmas will not be as jolly as they would like it to be.

For one, many of them will forego visiting their relatives because of budget constraint. Whatever money they have is just enough to pay for their food, utilities and mortgage.
Some may still stretch their budget and push through with their travel plans. However, they will find other ways to offset the amount they spent in travel by dispensing with gift-giving and opting not to eat out.

The threat of foreclosure hovers like a shadow and hampered most people’s holiday plans and preparations. And the sad thing about the current economic situation is there is no clear solution to the foreclosure problem.

According to the trade association, the National Foundation for Credit Counseling, calls received by its debt hotline during last month’s second week increased by 87 percent as compared with last year’s second week. Call volume for the third week increased by 170 percent.

Meanwhile, the research firm, TNS Retail Forward predicted that spending for this season will be the lowest since 1991 because of the foreclosure problem.

Data from the Commerce Department showed that retail sales in the U.S. declined by 2.8 percent in October of this year, the largest monthly decline since figures were collected in 1992. Some travel industry associations have predicted a decline in the number of people who will travel by car and airplane this Thanksgiving.

Because of financial constraints caused by the increased in unemployment and foreclosures, police departments are expecting a busy season with anticipated rise in theft, alcohol-related incidents and domestic disputes. Call volume for domestic arguments over financial matters increased by 30 percent this year.

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• Mortgage Applications to Avoid Repo Homes Up