Topic Post III: People cutting their expenses to save money !

An article found in CNN Money" Slowdown in consumer spending looms", mentioned according with economists the different reasons why people are cutting their expenses in order to save some amount of money to buy a house, pay their bills, debt and face the increases in interest rates to finance their loans.

Consumers want to supply their primary needs in order to have a better level of life, one of the main needs is to buy a house and the real estate market is passing for an unstable time. Based on location, size, distribution, neighborhood market value and other factors, consumers choose the most appropriate house that meets their needs according with the income available for this basic good. Buying opportunities for a house are fewer every day, prices are getting higher and the real estate fees that some companies charge to finance houses are out of range (consumer perceptions of price and value pg. 354).

Consequently, the consumer must be informed about the mandatory fees to be paid at the moment of finance a house. One way to save money in mortgages, bills and debt is if customers have an outstanding credit line, there are many programs and sites(Getsmart.com) for people eligible to reduce their interest rates, to refinance their homes (lowerMyBills.com) or for taking out home equity loans. Despite of the intentions of many people to buy a house, the cirscuntances make this dream hard to be true in a near future. The income available after the families pay their monthly expenses is being reduced by cost of live or inflation factors that affect mostly the low-middle class people`s economy.

People also is concern about the level of debt they have in an expanding economy face, it is inconceivably hard to "get ahead" of credit card debt. It is incredibly easy to fall into the cycle of "buy now pay later" credit card convenience. With so many adults struggling with credit card debt, it would seems that we would be cautious. Instead however, we are creating future generations who also enjoy the power of buying vs. the pricing power( value pricing pg.361) . Are credit cards for teens an idea whose time has come, or a way for greedy corporations to tap into a lucrative and yet, financially unburdened, demographic? According to marketers, comparing the marketing of today with the marketing of yesteryear is like comparing a BB gun to a smart bomb; it's enhanced by technology, honed by child psychologists and brought to us by billion of dollars. In the new millennium, marketing executives are insinuating their brands into the fabric of children's lives. They want--to use industry terms--'cradle to grave' brand loyalty and to 'own' children." This should be quite alarming in an era where as adults we can barely swim financially afloat.