The Department of Labor reported last week that initial unemployment claims for the week ending August 7 rose 2,000 from the previous week, to 484,000. This rise was apparently unexpected, and marks the highest rate since February of this year.

The news sent stock markets tumbling earlier this week as job growth remains frigid.

Here’s a closer look at the latest numbers from the Labor Department and what they mean:

• Initial claims rose to 484,000 from 482,000, meaning the unemployment rate will likely hold steady at 9.5 percent.
• The four-week floating average, which includes more data and so offers a check for highly volatile fluctuations, also rose to 473,500 – an increase of 14,250.
• The average year-to-date number of insured unemployed people in the United States was 5.018 million.

And, while extended unemployment benefits were available to people in many states, some analysts are reportedly growing nervous about the implications of such persistently high job loss numbers. In fact, some seem to be worried that the country is locked into a self-perpetuating cycle of unemployment and a weak economy:

• Many business owners and those responsible for hiring new employees are reluctant to do so because of fears that the recession isn’t over yet: They’re reluctant to commit to increased spending because they’re worried that they won’t be able to pull in enough revenue to justify long-term hires.
• Many individuals, worried about losing their jobs or dealing with reduced hours, are also “hunkering down” by spending less money, taking out fewer loans and focusing on saving more.
• Without adequate consumer purchases, some retailers are struggling to pull in enough income to stay afloat or grow. This means that they’re refraining from expanding or making new hires.

The problem is complex and involves all sectors of the economy and now, some analysts are suggesting that the recession will either end up having a “double dip” - meaning we’ll plunge back into recession after a brief period of economic growth - or that the first period of recession never actually ended.

So what can you expect in the coming months? It doesn’t look like any significant changes are on their way in the near future, which could mean:

• Housing market struggles: Many people are still facing foreclosure, underwater mortgages and bankruptcy. So anyone looking to sell, build or buy a house may face difficulties.
• Credit remains tight: Unless you have a squeaky-clean credit report history, you may not qualify for attractive loan terms while the recession slogs on.
• Income options are limited: While jobless numbers remain high, you may have trouble finding additional income, which can be frustrating if you’re trying to pay down debt.
• Saving matters: Whether you’re just beginning to save or working on a hefty nest-egg, now is not the time to blow it – you might need it for tough times ahead.

Did you know that a common contributing factor to bankruptcy filings is serious illness or injury? In fact, many Americans who file for bankruptcy to escape overwhelming debt do so because of medical bills they can’t afford and didn’t see coming.

It makes sense, then, to review some key ways to spend a little money now to avoid greater expenses in the future. Here’s a look at how you can protect yourself and your family, according to a recent article from U.S. News & World Report.

When to Buy New

• Cribs and children’s furniture: Even items that seem to be in good shape can be a health risk, as safety recalls on baby items are fairly common. Rather than scrambling for an item’s history, opt for a new crib with a proven safety record.
• Car seats: While nobody likes to think about getting in a serious car accident, they do happen and can be devastating if you and your loved ones aren’t prepared. Because safety standards are improved and changed commonly, opt for a new seat for your child. Also: consider that some damaged seats may look okay. Better not to find out the hard way.
• Bike helmets: Did you know that bike helmets are built to protect the head for only one crash? A used helmet may not provide the protection you think you're getting.
• Car tires: Like many of the items on this list, tires don’t come with an accident history and might not show visible signs of serious damage. But remember: the cost of new tires is probably less than the cost of the damage that could be caused by a serious accident. An ounce of prevention here is well worth the price.
• Computer software: While buying secondhand may seem like the cheapest way to go, it could end up being a total waste of money. Many kinds of software come with serial numbers that are registered with the company – after one registration, they can’t be used again and so would be worthless. Better to buy new software for yourself and avoid the risk of throwing away money.
• Mattresses and bedding: The cost (in dollars, hours, health and frustration) of dealing with bed bugs, mold, mites, bacteria or anything else that might linger on a secondhand mattress is rarely worth the savings. And don’t think these concerns are memories of a distant past, either: even mainstream retailers have had trouble with mattress-loving critters in recent weeks.
• Shoes: If you aren’t repelled by the idea of wearing someone else’s shoes, they may seem like an intriguing bargain. But be careful: used shoes tend to be molded to someone’s feet other than your own, and their support structures can be worn out. If you plan to be on your feet a lot, you may avoid serious back problems by buying new.

A recent press release from the Virginia Attorney General announces a lawsuit against a “foreclosure rescue” company. The suit alleges that the company charged illegal fees and offered insufficient help to the consumers it was supposed to assist.

So what does that mean for you?

Loan Modification vs. Foreclosure Rescue

The nation is in the midst of a foreclosure crisis, which means that millions of Americans are either struggling to make their mortgage payments, in danger of losing their homes and/or in some phase of the foreclosure process.

As they look for ways to keep their houses, some home owners are turning anywhere for help.

However, not all foreclosure prevention measures are created equal. Here’s a look at three you might have heard of:

• Mortgage loan modification: This involves a bank or lender sitting down with a borrower and figuring out modified payment terms so that the borrower can continue making mortgage payments and stay in his or her home. The Obama administration’s Home Affordable Modification Program aims to encourage banks around the country to modify mortgages for those struggling to make payments.
• Chapter 13 bankruptcy: Another legitimate option for people struggling to make mortgage payments is Chapter 13 bankruptcy, which allows filers to reorganize their finances and repay debts over 3-5 years. While the bankruptcy court cannot modify the terms of a mortgage, bankruptcy’s automatic stay prevents all collection action – which includes foreclosure – while a case is pending. Thus Chapter 13 can give filers some breathing room while they resolve their debts.
• Foreclosure rescue: This is often a scam. Generally, representatives from these less-than-reliable companies learn about foreclosure action by doing local research – foreclosures are a matter of public record. Then they may offer to “rescue” a homeowner from his or her troubles – for a significant fee.

The companies targeted by Virginia’s Attorney General reportedly charged consumers upfront fees as high as $1,200, and then did little or nothing to actually prevent the foreclosure of the home.

Such scams are depressing because they involve preying on people who are in desperate circumstances: Those in danger of losing their homes are often willing to take chances, including giving their money scammers disguised as angels.

Here are some of the signs that the Federal Trade Commission has identified as tip-offs, noting that a company might be fraudulent if it:

• Charges fees up front, before any services have been provided
• Guarantees that it can halt foreclosure, regardless of your situation
• Suggests that you not contact your lender, housing counselor, credit counselor or lawyer
• Suggests that you lease your home to buy it back over time
• Accepts payment only through cashier’s check or wire transfer
• Indicates that you should make mortgage payments to it rather than your lender
• Encourages you to let one of its representatives fill out paperwork
• Pushes you to sign paperwork you don’t fully understand or haven’t read in full

The Department of Labor’s latest report on the unemployment situation in the U.S. shows little change from a week earlier, indicating that significant recovery in the jobs market has not yet taken hold. Here’s a look at some of the latest numbers (for the week ending July 17, published at the end of last week):

• Seasonally adjusted initial unemployment claims increased 37,000 from the previous week, to 464,000, bringing the four-week floating average up 1,250 to 456,000.
• The advance seasonally adjusted insured unemployment rate was 3.5 percent, down slightly from the previous week’s 3.7 percent.
• The seasonally adjusted insured unemployment number was 4,487,000 for the week ending July 10, down from the previous week’s 4,710,000.

Week to week, the changes often aren’t very significant and don’t always reflect larger trends; however, last week’s numbers provide a somewhat hopeful picture when compared with figures gathered a year ago:

• Initial unemployment claims under state programs (unadjusted) totaled 498,022 for the week ending July 17; in 2009, the same week saw 585,575 claims.
• The number of people claiming insured unemployment benefits in state programs came to 4,581,351 in the most recent week, which marked a 186,572 person increase from the week prior, but was down from 6,256,960 during the same period in 2009.

These data, like many of the job loss information collected this year, show that recovery in the jobs market continues to be slow and inconsistent. While the national unemployment rate is down slightly from its 10+ percent high, it’s still well above where it needs to be and bankruptcy filing rates continue to remain high.

Unemployment Benefit Extension

Some more-or-less good news for unemployed Americans is that Congress and the White House have reportedly passed legislation that will extend unemployment benefits through November of this year.

The measure, which had difficulty getting through Congress because of Republican opposition, means that those whose benefits have expired or are about to will receive a few more weeks of government support.

While the nation’s unemployment rate clearly indicates that jobless citizens need help, many GOP legislators were apparently hesitant to pass the bill because of the affect it will have on the nation’s deficit.

So how will the extended benefits work? It seems that distribution of the funds will vary by state, so check out local resources to see what steps you need to take if you’re eligible for funding from the extended benefits.

Many people use lottery and contest winnings to buy a new house. But a new contest hosted by Avvo aims to keep the winner in their house.

Avvo.com is hosting the Save My House contest for residents of Florida facing foreclosure. The winner will have Avvo find a local lawyer for them and then cover the legal bills for the foreclosure fight.

To enter, you simply tell your story to Avvo and explain why a lawyer could help you keep your home.

We often talk about all the ways that bankruptcy is designed to save your home from foreclosure. But a local bankruptcy lawyer may be able to help you in other ways, too, particularly if you're facing foreclosure or financial difficulty.

Avvo offers some situations other than bankruptcy where a lawyer may be able to help:

• Underwater mortgage: If you owe more than your home is worth
• If you were served foreclosure papers by a company you do not recognize
• If you had a brief period of financial difficulty but are now back on your feet
• Lack of communication with mortgage company

If these or other situations apply, it may be worth your time to enter and speak with a local lawyer.

To enter, visit http://foreclosure.avvo.com/save-my-house-contest

The federal government has launched a centralized website to provide consumers with financial information about a variety of subjects.

The site, MyMoney.gov, includes resources from 12 government agencies (including the FDIC, the Federal Reserve, the National Credit Union Association and more), which collectively make up the Financial Literacy and Education Commission.

Centralized Financial Help

The genius of this website is that it brings together in one easy-to-navigate place useful information that had been buried on the websites of a dozen departments. Basically, the site is divided into three sections:

• Life Events: This section provides guidance and information about major life events that have a financial component. Topics addressed include having or adopting a child, attending college, marrying or divorcing, getting a home mortgage, starting or losing a job, starting or buying a business, planning for retirement and dealing with death. It’s nice to have a resource like this because it’s often easy to overlook the financial aspects of an event when focusing on more emotional features.
• My Resources: This section offers information for various groups of people, including youth, teachers, parents and caregivers, women, employers, military, retirees, researchers and non-profits. Whether your questions are personal or business-related, you can find information targeted specifically to your demographic.
• Tools: Here, you can find calculators, budgeting http://www.totalbankruptcy.com/life-after-bankruptcy/stay-debt-free/live-with-a-budget.aspx worksheets and checklists to help you plan for or better organize major financial decisions.

Navigating the Site

The layout of the site is pretty intuitive – if you’re looking for basic information, the “Life Events” category is probably the best place to start, since it provides articles that give helpful overviews.

For example, in the “Going to College” section, there are pages called “Get the Basics: How to Pay for College,” “Money for College: Federal Student Aid Information,” “Using Savings Bonds for Education” and more.

Then, you can look to the “Youth” section under “My Resources” for tips on how to handle money and credit while pursuing a degree.

Finally, you can turn to the “Tools” to find checklists to make sure you aren’t forgetting important steps as you begin the process of applying to colleges and figuring out how to finance your education.

Once you select an article or checklist you want to read, MyMoney.gov provides you with a link to the page of the department that hosts the information, making the whole process pretty painless.

Unfortunately, one of the best ways to learn what an online scam looks like is to encounter one. And if you've had too much experience with online scams you could still be reeling financially or considering bankruptcy.

The good news: The Federal Trade Commission has announced a new website to help consumers experience a variety of realistic online scam situations without actually losing money. By experiencing these scams in a risk-free environment you'll be better equipped to avoid them in real life.

The latest of these sites, Esteemed Lending Services, mimics advance-fee loan scams that have been known to drain consumers of their money without offering anything in return.

Know Financial Scam Warning Signs

When you click on any link on the Esteemed Lending Services page, you’re brought to a page that explains that, had the site been real, you could have been scammed. Then, in order to arm consumers with the tools necessary for avoiding scams, the FTC explains what to expect from advance-fee scammers:

• Professional-looking web sites: Often, the FTC notes, scam companies will have a legitimate-seeming online presence and a trustworthy-sounding name.
• Guaranteed loans: Any offer that guarantees you’ll be approved, regardless of your credit history, should signal a scam to you. Legitimate lenders need to know your credit history in order to give you reasonable loan terms.
• Unclear fees: Real lenders disclose their fees upfront and do not require you to pay them until your loan has been approved. Scammers often charge fees upfront – and then never follow through with their promises of loans.
• Phone loans: In the U.S., it’s against the law to promise a loan over the phone and ask for payment before the money is issued.
• Slightly off names: One trick some scammers use is to give themselves a name and logo that resemble those of a legitimate company. If you’re not paying attention, you could easily be confused.
• Lack of proper registration: If a company isn’t registered in your state, chances are it’s not legitimate. Back away.
• Money wires: Legitimate lenders will not ask you to pay by wiring money – if someone asks you to do so, decline and walk away.

More Financial Help

The FTC also offers helpful hints for avoiding scams in such areas as diet products, male enhancement, medical supplements and work-at-home offers.

Last December, the U.S. House of Representatives passed a financial oversight bill that would address many of the problems on Wall Street that led to the stock market collapse that touched off the Great Recession. Last week, as the New York Times reported, the Senate passed a similar bill.

Now, the two houses plan to work to unify their bills into one that can be signed into law.

Reforms Addressed

In the version of the bill that passed the Senate, changes to the current financial system would include:

• Provisions to curb abusive lending practices, especially in the mortgage industry
• Safeguards that would guarantee that large and complex companies could be liquidated - possibly in bankruptcy - without having taxpayers foot the bill
• Requirements that would force large banks to detach some of their profit-rich derivatives operations into separate entities (though this provision was not in the House’s version of the bill)
• The introduction of a “Financial Stability Oversight Council,” which would be charged with highlighting troublesome trends that could prove dangerous for the whole economy
• The introduction of new rules for derivatives traders
• The requirement that hedge funds and similar companies register for regulation with the Securities and Exchange Commision (SEC)

The Senate’s passage of the bill is seen as a victory for the Obama administration, which has blamed the recession largely on a lack of oversight and accountability on Wall Street.

The Next Step for Finance Bill

In the coming weeks, as the Washington Post reports, a group of senators and representatives will work together to reconcile the differences in content between the two bills, aiming for a version that Obama could sign into law.

While the two versions are reportedly very similar at this stage, sources indicate that the main differences between the two include:

• Plans for regulating the complicated derivatives market
• Whether to ban banks’ current practice of trading on their own accounts (proprietary trading)
• Whether to require a $150 billion fund from financial industry coffers to allow for emergency dissolution of any struggling firm
• Whether to create a separate agency charged with matters of consumer financial protection

According to sources, leaders in the House and Senate hope to reach a consensus on the provisions included in the legislation by July 4th of this year.

Two senators have proposed new regulations that may drastically change the way debt settlement companies do business.

The amendments are part of a larger financial reform bill currently being discussed and were jointly proposed by Senator Charles Schumer of New York and Claire McCaskill of Missouri, the Associated Pres reports.

The laws propose some major changes to how debt settlement companies collect fees, operate and the damages for which they are liable. The main points of the law include:

• No fees could be collected until a settlement is reached
• A cap on fees charged. Most companies charge consumers a percent of their debt for the service. Some companies may charge 20 percent of the debt, but the proposed cap would likely be much lower.
• More disclosures from companies to consumers, including costs and services to be performed
• No monthly fees
• Consumers would be able to cancel a debt settlement contract and receive a complete refund of fees
• More regulatory powers of the industry for the Federal Trade Commission
• Companies would be subject be subject more punitive damages liability during civil lawsuits

As of right now, these are only proposals for a bill that has not yet passed, and changes could be made. The proposals would not affect any bankruptcy laws.