Poor credit problems : Surviving the Credit Crunch: Financial Advisor Tells Everything Consumers Need to Know about the Sea of Change in Consumer Credit

Cedar Rapids, IA (PRWEB) November 1, 2007 -- We keep hearing that getting credit is much harder now that lenders are tightening their belts. But what kind of affect does this credit crunch really have on the ordinary man or woman? "The place where average consumers will feel the pinch most is when they look to buy and sell a home," says Cedar Rapids-based financial professional Monte Marti. Gone are the days when people were able to easily obtain home loans with no money down, bad credit or no documentation. "At this point, there is no real apocalypse," says Marti. "Rather, those consumers with less than perfect credit will find it more difficult to find a loan with terms as favorable as we've seen in recent years." Marti advises consumers to follow five tips in order to survive the credit crunch: BE SMART ABOUT YOUR INVESTMENT STRATEGY Whenever there's stock market volatility, a good number of investors may decide to cut their losses and move their money into bonds or cash instruments. That, according to Marti, could be disastrous. "Most people are investing in order to reach their long-term goals -- things like sending their kids to college or retiring with financial security. Long-term investors who've developed a thoughtful investment plan should not be overly concerned by the daily fluctuations in the market. The stock market historically experiences a 10 percent correction at least every two or three years and that's what we recently experienced from mid-July to mid-August: a correction. This is normal and to be expected." Marti says many investors have become complacent and are now surprised by the recent market volatility. The current bull market began in October 2002 so it has been nearly five years since we have had such a correction. It was time. It is important to remember the power of asset allocation and proper diversification during times of market volatility. Slight adjustments and/or rebalancing may need to be done, but the key is not to get caught up in the emotions of the market and make changes you may regret once the market stabilizes. KEEP YOUR CREDIT RECORD CLEAN As many have discovered, this could be a good time for those seeking a home loan. While the news is bad for those who currently have or would only qualify for sub-prime loans, the Federal Reserve is adding money to the banking system to help relieve the pressure that lending institutions and consumers may be feeling. "The credit crunch is likely to be most painful for those with lower credit scores. Those with good credit scores, on the other hand, aren't likely to be affected," says Marti. "Once again we are reminded of how important it is to be aware of our own credit scores and to learn what we can do to keep those scores as high as possible. Credit scores have always been important, but they are even more important now." THINK LONG-TERM AS YOU SHOP AROUND Back when loans were easy to obtain, many consumers opted for interest-only and adjustable rate mortgages (ARMS). Now that interest rates on many of these loans are increasing, we are also beginning to see foreclosure rates increase significantly. "The one-two punch -- ARMS resetting and interest-only terms expiring -- coupled with a tighter lending market is sending many consumers into foreclosure," says Marti. Marti says people are smart to think long term and shop around. Before you sign that ARM or interest-only loan, think through all of the variables. While it may look like you will be able to sell your house or pay off the loan as expected, life and related... To read the press release in full goto http://prweb.com/releases/2007/11/prweb563898.htm