Archive for May, 2009

Mortgage penalty shocker, part two

Thursday, May 28th, 2009

This is becoming a hot issue as the penalties for borrowers trying to get out of fixed-rate mortgages just keep going up. I highlighted it here two months ago and have done recent Star articles here and here.

I’m concerned for a few reasons:

– When it comes to calculating an interest rate differential penalty, lenders can do what they like. There is no standard formula, nor is there any federal legislation or oversight. So, how can consumers challenge the bank’s math?

– Going to the bank’s ombudsman isn’t a solution. Most don’t even deal with complaints about rates or fees. Their view seems to be that if you had read your mortgage contract, you would have known a penalty was charged to get out ..read more

Starting a business isn’t as crazy and risky as they say

Tuesday, May 26th, 2009

Tell someone you’re starting a business, then brace yourself for their overwhelming show of support:

Wow, 95% of all businesses fail, right? That’s scary.

Most businesses are never profitable and fail within 5 years. ?That’s mind-blowingly depressing. ?Aren’t you worried about all the time and money you’ll lose?

So many businesses end in bankruptcy. ?Aren’t you worried about that wrecking your life?

I don’t think that’s a good move in this economy. (Right Dale?)

Well actually, these “well-known facts” are crap.

For example, let’s examine that 95% failure rate. The United States Department of Labor reports that the number of business that terminate within four years is just 24%. And for only 17% of those, “termination” meant failure or bankruptcy — the majority were businesses that were ..read more

Using Debt Consolidation Companies For Tax Relief Purposes?

Tuesday, May 26th, 2009

Debt consolidation, as the name suggests, means you are making sure that you have taken out a large amount of money as a debt. It is going to be used to pay off your numerous other smaller debts. Once you have dealt with those trifling debts, in the shape of a student loan, a mortgage loan, a car loan, the temporary payday loan, and so on, you just need to focus upon getting rid of this major financial obligation in the shape of a debt consolidation loan.

There are many companies out there who are quite willing to give you a large sum of money to meet your financial requirements and obligations. One needs to understand that you may get a loan from such companies to ..read more

Bill Consolidation – Some Tips to Repay Your Debt Faster

Tuesday, May 26th, 2009

If you opt for a bill consolidation loan, you can bring down the rate of interest charged on your loan and repay your debt faster. However, these loans do not come for free. You have to consider the fees and get the right combination to repay your debts in a short time. Given below are some tips that will help you save your money

Do Not Forget The Fees

It is natural human tendency to focus on things that will be advantageous for us. However, do not forget to consider your fees that shall be charged on the transaction. Refinancing of a home mortgage and capitalizing the equity in your home sounds like a good idea. However, this transaction will cost thousands of dollars which may make ..read more

Debt Consolidation Scams – Buyer Beware

Monday, May 25th, 2009

The media is saturated with advertisements for debt consolidations options, not to mention your email inbox. Everyone has an answer for your problems and when people have problems there is no shortage of unscrupulous people waiting to take advantage of the situation. Debt consolidation scams are no different.

Scams of any kind can almost always be avoided with a little bit of common sense and some basic research. I received a check in the mail for $4,000. It took about 30 seconds to find information on the internet about the company that had written it and how the checks were bogus.

If someone says that they can eliminate your debt without you actually paying it and that your credit will not suffer for it, you will be ..read more