Debt collection has become an issue with some consumers. Generally, debt collection procedures do not begin until after the lender has tried a variety of ways to get paid what is owed them. Some of the more common methods that lenders use include sending letters of delinquent payment and perhaps placing phone calls to the borrower's home. When these methods have proven to be futile, the lender may pass the loan onto a debt collection agency or...more
Active duty military personnel who are having financial problems with their mortgage payments have some avenue of help under the Soldiers and Sailors Relief Act which can be very beneficial to them and to their families.Who is eligible for this program?The provisions of the SSRA apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty (for Reservists). This includes members...more
Cosigning on a loan can be a great way to help a family member or close friend when they need help, but it can also be a great way to ruin your own credit if things do not work out.Before you decide to cosign on a loan, you should always read the cosigning agreement that lenders have for these. By law, the lender must show you a copy of the agreement before you sign for the loan. In some states this is called a cosigner's notice.The cosigner's notice usually contains language such as this:As cosigner for the loan, you are being asked to guarantee this debt. You should consider this carefully before you do it. If the borrower does not pay the debt as agreed, you will have to pay it. You should be sure that you can afford to pay if you have to, and that you want to accept this responsibility as cosigner.As cosigner for the loan, you may have to pay the full amount of the debt if the borrower does not pay. In addition, as cosigner you may also have to pay any late fees or collection costs.The lender may collect this debt from you without first trying to collect from the borrower (in some states where this is allowed). In addition, the lender may use the same type of collection methods...more
Many consumers know that they have a credit score but they may not know what the score is. As well, many consumers know that there are some actions or inactions that they can take that will help or hurt their score. Again, they know the broad picture, but not the details. Here are some of the things that consumers do that all but massacres their...more
Most consumers are aware of the current problems that some financial institutions are experiencing. This has caused some concern for large investors, those with CD investments over the maximum amount that is covered by the Federal Deposit Insurance Corporation. Currently, the maximum allowed is $100,000 per account.The simple answer to this problem...more
By now most American consumers have heard about the sub-prime mortgage crisis. It would be difficult not to have heard about it. What many consumers have not heard much about is the increasing belief that even homeowners with prime mortgages may be facing some issues in the near future.Of particular importance is the threat of lower home values, even for those with the best of credit and the best of mortgage loans. It is no secret that as homes in a particular area begin to fall into foreclosure proceedings, surrounding homes will lose value. The problem seems to work exponentially, too, meaning the more homes that are being lost the more value surrounding homes lose.A recent survey conducted by Zillow.com, an online real estate community, concluded that on average home values across the nation were down more than 5.5 percent from just one year ago. In some of the worst hit areas of the nation, that percentage is even higher.The troublesome news that goes along with this is that according to Zillow.com upwards of 15 percent of nationwide homeowners who purchased their homes within the last twelve months are now in a position where they owe more on the home than what it is currently...more
Did you know that today more individuals are turning toward personal bankruptcy as a way of solving their financial hardships? It is true.During the period from 1998 through 2000 there was a decrease in the filings for bankruptcies but that is not...more
Do you know what to do if your credit cards or ATM cards are stolen? You might be surprised at how many people do not.All consumers should know that the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures if...more
Just like a regular savings account, a money market account is a type of savings account that is offered by banks and credit unions. The main difference is that money market accounts will usually pay higher interest, have higher minimum balance...more
Many consumers have found that putting money into CD's (certificate of deposit) accounts is a good way to earn additional interest over regular savings accounts. Just like the regular savings account that most of us are familiar with, money that you...more
Most consumers have heard of Chapter 7 bankruptcy but there is another type known as Chapter 13. This article details some of the differences between the two and how they may affect someone who has to file.There are many differences between Chapter 7...more
Most consumers realize that there is a relationship between their debt and their credit reports. The truth is there are several relationships between a consumer's debt and his or her credit reports and ultimately the credit score that is calculated...more