In this terrible economy, or in any terrible economy, a common problem is the lack of credit and the overall credit freezes that the financial institutions put in place. The credit freeze can impact us in many ways.
-Credit cards being shut down
-Car and home loans become harder to get
-Rates rise and fees on accounts increase
These are just some of the consequences of a frozen credit market and since it is harder for people to obtain financing, they are obligated to live within their means. Which means less customers for basic high dollar consumer goods and that means great products at great prices for those of us that have liquid cash.
Look around you, all the car prices are down 25% or more from what they should be and sit on the market three times longer than usual, jewelry no longer sell as fast as retail credit accounts are getting tighter and more limited and retailers are having longer and bigger sales to move inventory and it still doesn’t work. People’s buying power is down significantly because of their lack of cash/credit.
Having a great savings plan is the key to growing your cash reserve and it can come in handy during such difficult credit times, having a seperate reserve savings for emergencies and a short term savings plan allows you to capitalize on these opportunities while keeping enough in your reserve.
What kind of deals are out there?
Check out craigslist.org, autotrader.com or simply ebay.com to see the great drop in prices that has occurred on just about everything.