Snydley Whiplash At Your Service!

How to Spot and Avoid Equity Scams

With all the talk these days about Recession and layoffs and inflation, people are looking for ways to make ends meet. Regretfully January is the month when all those Holiday bills come due. Where do people get the money? Well those in dire straits that happen to be homeowners, there is always the old “Home Equity Loan”. Also known as “Second Mortgages” (but Home Equity sounds better than a second mortgage, regretfully there are to many people who think that if you soften the language, the experience is lessened, ask all those who have been “downsized” instead of “laid off” and see if there is any difference).

In fact about 25% of the TV commercials these days are for some sort of Home-Equity Loan (the rest are for beer, cars and a small percentage designated for other stuff). Funny as the banks themselves seem to have overextended themselves on other mortgage loans and now are desperate to trap a whole new set of victims..er customers.

Most lenders on the equity loan marketplace are legitimate lenders; however, a few lenders are taking the less fortunate for a ride. These unscrupulous lenders offer appealing loans, yet fail to tell the borrower about hidden charges or “balloon” charges. In fact this is what the whole “Mortgage Crisis” is about. Hidden charges are often stripped from loans, since the APR is a supposed security to borrower that weeds out hidden fees.

“Equity Stripping” is one of the leading scams on the loan marketplace. The lenders engaging in “equity stripping” will often present to borrowers (too good to be real) deals, leading them to believe that they are saving money. Thus, once the borrower agrees to the contract, the lender will pose new charges, high interest, and other fees that puts weight on the borrower, until he or she breaks and
fails to make payments on the mortgage. The lender then repossesses the home, selling the house for profit while the borrower is standing on the corner, wondering where he will live next.

Thus, the Federal Government has provided information to help borrowers avoid losing. Since equity stripping is becoming a huge industry, the Fed’s advise homeowners to watch out for equity stripping, including paying attention to lenders that are offering loans that reach above your wages.

The feds also advise borrowers to stay alert to “loan flipping,” which is the process of switching loans regularly and requesting larger amounts of cash on each refinance applied. If a lender is pressuring you to sign an agreement, you will need to find another lender, since pressuring borrowers is a surefire tip that the lender is out to take you for a ride. You will also want to consider PMI, which is personal mortgage insurance, which is a requirement; however, few lenders attempt to charge for additional coverage that is not needed. Thus, homeowners, especially the less fortunate,should adhere to advice and read details of any loan offered thoroughly.

It is amazing that these types of scams still exist. I don't know if I should laugh at or show pity for the fools who fall for these in this day and age of unlimited information. I know I feel deep scorn for the criminals who try to pull these scams and they should be in jail and out of business.

Mahalo.


******************************************************************
Need to learn how to get and stay out of debt and live debt free?

Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html
******************************************************************

Too Deep In Debt? Find a Debt Consolidation Program – Help To Become Debt Free!

Here we are, new year and new hopes and dreams are dawning as everything is new again. Only one thing can spoil this wonderful feeling. The bills from the holiday season have now descended upon us and we are immediately brought down to earth.

Did you spend too much? Did you decide to travel in First Class during your holiday rip when you can't afford it? Have you let your other bills become overdue? Are creditors starting to call? Are you getting too deep in debt?

If you answered yes to these questions, you are not alone. Statistics show that the average American house holds 13 credit cards, and a combined debt of $5,800 in credit card debt or more. In debt, it's next to impossible to save, invest, or even enjoy life fully due to a lack of financial freedom.

Of course one way out is to borrow more money to pay off old debts, but this only gets one deeper into debt. If you are experiencing severe debt difficulties and find it difficult to cope, the last thing you really should not do is to borrow more money. Try to consolidate your debt using a debt consolidation program.

Debt consolidation programs you say? Aren't they for losers and deadbeats? Okay maybe you are right, what are my options?

There are various debt consolidation programs, which gives you a lot of options. You could either select a paid service or go for the many free services available.

Check with your Banks and financial firms to see if they can provide you with these services. You will be surprised how many people do use these services and are not losers, but normal people who got into trouble.

If comfortable using the Internet, you could search for an online program for debt consolidation. Search using the term "debt consolidation" and you will find a wide variety of companies to choose from who will be willing to help you. Fill out their free, secure online questionnaires; and a representative from each company will get back with you within 24 hours with a recommendation about your financial situation.

Once enrolled in a particular company, you will have a financial analyst or an expert counselor working with you to frame a program to suit your financial need. They then work with your creditors to get lower interest rates and lower monthly payments for you. In some cases, they might even get creditors to eliminate past fees.

Once your counselor has come to an agreement with each of your creditors, you must begin making payments to the debt consolidation company each month. They will divide your payment among your creditors. It is important that once you start a program, you stick with it until you pay off your debt. Sure this will hurt for a little while, but in the long run you will be glad you did. Remember, “No Pain, No Gain” not only applies to exercise.

Another benefit of a debt consolidation company is that they will teach you how to use credit wisely and how to budget better so that you won't find yourself in debt again. Then of course it is up to you to learn from your lesson. Smart people learn from their mistakes and only fools repeat theirs.

Learn to spend wisely and enjoy life as it was meant to be.

Mahalo.


********************************************************

Need help to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

*********************************************************

Another Election Year Another Recession

The Business press are all agog over the fact that we might be heading for a Recession in the economy. Well DUH! If they bother to pay attention to their own records they will see that after every Multi-Term Presidency we tend to have recessions. It is part of the Business Cycle, and yes that is probably why it is called a “Cycle” rather than a line.

Lets face it it happened in 2000-01, 1992-93, 1975-76 and so forth and back all the way to the beginning of the country. It is an historical fact that one can look up for themselves (if they weren't so lazy). How does this happen? Why does this happen?

The main cause of this, if anyone really pays attention, is that the current President cannot run for another term, being limited to two four year terms by the Constitution, and the business community and investors start getting jittery over who will take over running the country. The whole economic philosophy can change depending upon who wins the election (that is why when a sitting VP that has a similar philosophy to the outgoing President gets elected, the cycle is delayed until they themselves leave office).

If there is a change of party then of course the whole economic scenarios change (albeit rather small) and therefore different types of investments are needed to survive in the different environments. Of course it also depends upon the personality and policies of the new President, as some Republicans act like Democrats and vice-versa.

Of course who is running Congress can have a major effect, and usually if the same party runs Congress as the White House, we are guaranteed to have a Recession, that is why Mid-term Elections usually see a change in Congressional make up.

This is good for the country as we depend upon the Checks and Balances between the different branches for our own well being and civil liberties. Regardless of what the immature sour-grapes , namby-pamby naysayers (on the left and right) are whining and crying about, no opposition politician has been assassinated, jailed, or otherwise in the last 8 years, so our basic liberties are still intact.

So what can we do if we know trouble is coming? Well prepare for it and survive the stormy seas.

Well the most important thing to do is to make out and stick to a budget.

See what you can live without as far as unnecessary items are concerned. Put something away for emergencies and planned big expenses (vacations, graduations, weddings, etc). Make sure all bills are as up to date as you can make them and pay off all that you can. This way you don't have debt hanging over your head and you can have a bit more financial freedom.

Maybe a change in your shopping habits can help as well. Buy some of the store brands when doing your grocery shopping. They are not as much of a fall-off as you think, and the quality is the same (in fact due to the government inspections etc. they have to maintain a certain level of quality before they can be put on shelves). Another thing would be eating less Red Meat and more fruits, vegetables and poultry. Not only will you cut down on your grocery bills, but also be healthier for it to boot. Talk about a Win-Win situation!

Now I know what it is like to be a “victim” of “downsizing”, rightsizing” or what ever the moronic newsreaders are using as a euphemism for a layoffs, so I know how traumatic it can be. Especially when the business folds or the office you are working in closes up. It is harsh and somewhat degrading to go through and collect unemployment for a while. But take the time to learn new skills, or at least brush off the rust of old ones you haven't used in a while. Most of all do not despair nor panic. If you were smart and prepared you will come out all right. If not, then pull yourself up by the proverbial bootstraps and get moving, vowing to never be unprepared again.

A recession is coming but it doesn't have to be a catastrophe if you are prepared for it and act in an intelligent manner. Take control of your finances and they won't control you.

Mahalo.

******************************************************************
Need to learn how to get and stay out of debt and live debt free?
Tips and techniques outlined in our ebook “Debt Free Living”.

For more information:
http://www.renspubhouse.com/debtfree/debtfree.html

******************************************************************