An expected rate cut of one-quarter percent was ordered by Federal Reserve Board Chairman Ben Bernanke. This drops the federal funds rate to 4.25 percent. It also represents a further attempt to stave off recession. (more…)
Credit and Debt Blog
A Service of Debtors Unite, Inc.
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Archive for December, 2007
What Does ARM Mean?
Some people will tell you that ARM stands for adjustable rate mortgage. The truth is that it is called an ARM because that is what you will pay, plus a leg, on an adjustable rate mortgage if you keep the loan for more than 2 years. (more…)
Seniors Unaware of Credit Freezes
Senior citizens do not understand the option of placing a freeze on their credit profile. That is a conclusion of a recent study conducted by the American Association of Retired Persons (AARP) Public Policy Institute.
A total of 69 percent were unaware of credit freezes and how they work. For seniors looking to prevent identity theft, a credit freeze may be the best answer. (more…)
ARM Freeze Agreement Does Not Help Everyone
On December 6, President Bush revealed a plan to help some borrowers with ARMs avoid a rate hike for 5 years. The plan is designed to help homeowners build equity and have time to improve their credit so that they can refinance to a mortgage loan with better terms.
The purpose is to prevent a foreclosure fallout that would affect entire neighborhoods and further decimate housing markets in several key cities. They key compromise though is that homeowners must not be delinquent in their payments. (more…)
Credit Cards Defy Interest Rate Cut
The Federal Reserve Board is expected to cut interest rates on December 11. This reduction normally is followed by interest rate reductions by major lenders.
Major credit card issuers normally adjust their rates accordingly within a 30 day time frame. However, it appears consumers will not see the relief this time. (more…)
Seek Credit Counseling Before Charge-offs
Credit counseling is marginally effective once all of your accounts have been charged off. The reason is that most of your options are off the table when your accounts are turned over to outside collections.
Experienced credit counselors are familiar with multiple techniques and strategies to eliminate credit card debt. Reputable agencies can help you understand all of your options. If you wait too long, then you only have a few options left. (more…)
Credit Card Charge-offs Up 20 Percent
According to Collections & Credit Risk, credit card charge-offs rose 20% in the third quarter of 2007 over the same period in 2006. Bank of America, Chase, American Express and Citigroup set the pace with a combined $5.57 billion in charge-offs for the three months ending September, 2007.
This is less than the second quarter’s increase of 22%. Here is how the individual issuers fared. (more…)
Senate to Debate Credit Card Rate Increases
The Senate is reexamining some of the common practices of credit card issuers. One item that is being scrutinized is the credit card rate increases resulting from reviews of your credit report.
Credit card issuers cite the need to balance increased risk with higher interest. They check your credit regularly to look for signs of financial weakness. Did you know that your rate could increase even if you never missed a payment? (more…)
Wake EITC Coalition Formed
Several Raleigh, NC based organizations have formed the Wake EITC Coalition to assist working families with income tax preparation and filing. The Family Resource Center of Raleigh, Fiscal Progress, Passage Home, AARP and the Triangle United Way have formed a partnership with Wake County Human Services and the Internal Revenue Service.
This partnership will help working families by providing free income tax preparation and electronic filing. Rather than paying for a refund anticipation loan, most refunds will be received within 10 days. (more…)
Newest Long-Term Care Trend: Mexico?
One of the newest trends in home health care is outside of the traditional long-term care business. Instead of paying premiums for long-term care insurance or forking over thousands of dollars a month for assisted living facilities, many retirees are moving to Mexico.
It is cheaper and rapidly gaining in popularity. However, there are also many risks involved with this largely unregulated industry. (more…)
