Posted on 01 April 2010
Tags: bad debts, credit, credit card, credit card debt, credit card defaults, Credit Cards, Debt, Debt management plan, Enhancing debt, Finance, financial activities, Financial Advisor, Financial Aid, getting out of debt, high interest loans, high interest rate, high interest rate loan, How to avoid debts, interest, Personal Finance, Resolving Debts
Getting the things organized in your life would definitely assist in sorting out the best stuff which work best for you. Executing the best things right away can assist you a great deal. It would ultimately turn into your passion and you will soon be free from your financial concerns. This short term pain will reap you a long lasting delight.
Don’t enhance your debts
The first and foremost thing in getting out of debts is to stop adding more debts. If you keep on piling more debts, it would be really disastrous rather evading your financial worries.
Chop your credit cards
Relying on credit cards is our biggest dilemma. It is really hard to control your expenses when you keep on spending on credit cards. Chop your credit cards if its cumbersome to control your reliance on them. Pay them as early as possible since they are the highest interest rate debts.
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Posted on 10 July 2009
Tags: ability to pay back loans, american banker's association, American Banker’s Association, bank, Bankruptcy, consumer delinquencies, credit card, credit card defaults, Credit Cards, credit crisis, Financial economics, Foreclosure, home equity loans, Interest Rates, job losses, Personal Finance, Real Estate, un-employment, united states, US economy
Defaults and Late payments on home-equity loans and credit cards are climbing to the highest levels. According the the American Banker’s Association the figures are alarming and disturbing. The worst hit area is home-equity loans. If this trend continued, it has a potential to develop into a major credit crisis in near future.
How This Happened?
In my opinion availability of cheap credit and rising house prices during early part of this decade created a window for home owners to take home-equity loans. Consumers were literally treating their homes like they were liquid assets (cash in bank or ATM). They were buy consumables and services(insane). All was well until the home prices started going down and down. The market collapsed and the consumers were left in pile of debt. 
The data shows that default rates on home equity loans have climbed to more than 3.5 percent in first quarter of 2009. The late payments on credit cards is also touching 2% levels. This is a big jump compared to the figures this time last year.
One in 9 American is Jobless
The major contribution in this mess is Un-employment. According to official data, every 1 in 10 person is out of job. This is national average. there are states where every 1 in 8 people is out of job. worse thing is that is just a beginning. Job losses will keep on rising and people’s ability to pay their bills will come to a grinding halt.
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