| What your banker won't tell you... | | | | them, they are now trained to look at your credit file |
| This summer could be a foul season for many | | | | and determine how much (if any) equity you might |
| consumers followed by tumultuous times for the | | | | have in your home. They then offer you a |
| remaining years. The quadruple jinx of rising interest | | | | consolidation loan with their bank. Should you decide |
| rates, higher credit card minimum payments, erratic | | | | to take them up on their generous offer of a |
| fuel costs, and depressed home values could be the | | | | consolidation loan, they then own you. Should you |
| calamity for many families already living on the | | | | default on your credit card, they can take the house! |
| threshold of bankruptcy. | | | | Beware of wolfs in sheeps clothing. |
| Americans who recently broke into overvalued home | | | | Another clandestine offer is consumer credit |
| equity, at historically low interest rates, are now | | | | counseling. Every ad and commercial you will see for |
| seeing a sign of things to come. In some cases, | | | | this service pitches themselves as a non-profit |
| consumers may find themselves upside down, owing | | | | organization that was established naturally to help |
| more than their home is worth. In other cases, low | | | | you get out of debt quicker, thus avoiding |
| interest rate credit cards now mandate APRs at least | | | | bankruptcy. What you don't know is that the |
| four percentage points higher than two years ago. | | | | non-profit consumer credit counseling industry if |
| Plus, issuers have been forced by regulators to | | | | fueled and funded by the credit card industry. They |
| double minimum payments on some cardholders who | | | | report to the credit card industry! They also will not |
| are paying high interest rates. But the real blistering is | | | | make your monthly payments on time, thus ruining |
| fuel prices which could now soar any day to any | | | | your credit history anyway. I have seen this time and |
| price. Paying $4 per gallon for gas, higher utilities, a | | | | time again, over and over. |
| 30%+ APR for credit cards, and clinging to a 100%+ | | | | This brings me to ARM's. In short, they are |
| home equity line of credit may push more Americans | | | | adjustable rate mortgages. Never in American history |
| into foreclosure and ultimately bankruptcy. | | | | have we seen so many people with no credit files |
| Don't kid yourself on your current home situation. If | | | | approved for home loans. Many of these people |
| you are upside down in your home, there is a clause | | | | were innocently following the American dream and |
| in your contract with the lending institution that | | | | quite naturally, the American dream is to purchase as |
| states that they can 'call' the loan in at anytime. That | | | | much house as you can afford for the longest |
| means quite simply that they can force you to pay | | | | amount of time. Based on this fact, many people |
| enough to settle yourself into an equity position or | | | | that could not afford that dream house under |
| foreclose on the home. Why would the banks do | | | | conventional financing were able to afford it by |
| that? | | | | incorporating an ARM loan. |
| Look at it this way. Banks are in the business to | | | | In the long run, this will come back to bite them hard. |
| make money, it's as simple as that. In addition, while | | | | When they signed an ARM, they were betting that |
| you are mailing off your mortgage payment to Chase | | | | the interest rates would not rise during the next 30 |
| Manhattan, it may actually be forwarded to The Bank | | | | years! When the rate does rise and their mortgage |
| Of Beijing! That's correct. China now holds over 40% | | | | rises accordingly, we will start seeing the effects of |
| of American home mortgages. | | | | this in the way of mass foreclosures. As of this |
| There is a concrete reason that credit card minimums | | | | writing, we are already at an all-time high for |
| have doubled. The credit card industry will attempt to | | | | foreclosures starting with Indianapolis in first place, |
| fill your head with propaganda such as: 'they are | | | | Atlanta in second place and Dallas-Ft. Worth in third |
| attempting to help consumers get out of debt | | | | place. As rates continue to rise and jobs continue to |
| quicker'. What they are really pulling off is this: when | | | | be outsourced, we will see a plague of foreclosures |
| you can't make the minimum payment and contact | | | | that I predict will surpass the 1980's. |