Smart Borrower Blog

Archive for May, 2009

Bad Credit Home Loans May Work For You

The buzzword bad credit home loan almost sounds like an oxymoron, but they do indeed exist.   We often hear them referred to as a subprime market loan, B, C. or D credit lending.   Many people blame the subprime market for the condition of the current economy.   Although that may indeed be a contributing factor, it is not the only cause. People that have been credit must understand the position that they are in.   Regardless of what has put them in that position, they must ensure that if they go for a bad credit home loan, they... more »

Student Loan Forgiveness on the Chopping Block

An article in the New York Times    today put fear into the hearts of many people trying to get their student loans forgiven. Basically all across the nation, programs designed to entice people into low-paying but very important jobs like teaching and community health are being cut or reduced due to the current volatile economy and less government aid. The Times quoted Tracey L. Bailey, director of eduction policy for the Association of American Educators: "You're going to diminish the quality of the candidates who are thinking, ‘Do I take my skills in math and science into industry or... more »

Small Business Lending Increasing

The New York Times has a interesting article today about how to get a business loan in the current environment. With national lenders facing a liquidity crisis and business credit card issuers not accepting new users, it’s easy to see why some think it is impossible to get a loan these days.   The SBA however reports that there has been a 25% increase in lending to small businesses since March. The key to getting a loan seems to be focusing on smaller regional banks.   They avoided a lot of the complex financial tools that got the big boys... more »

Commercial Loans Seen As the Next Big Problem

The National Association of Realtors is quoted as saying” commercial real estate is the hardest hit industry outside of the auto industry.   A recovery in commercial real estate always lags a general economic recovery but with the right policy prescriptions we can recover more quickly.” It appears there is little liquidity in the commercial loan market at present.   Right now it faces its worst challenge since the Great Depression.   According to Reuters, hundreds of billions of dollars in commercial loans will mature this year with over $1 trillion maturing in the next three years.   If there... more »

Help For Small Business Owners

Because this is National Small Business Week, I decided it would be more than appropriate to post about a new loan program for struggling small business owners. The program is the American Recovery Capital Loan (ARC) program. I ran across an article on the Valley Business Blog, which provided me with the information for this article. This program is guaranteed by the Small Business Administration.   It provides interest free loans of up to $35,000 for the express purpose of making principal and interest payments on existing qualifying small business loans.   The program runs for six months. This program... more »

Credit Card Bill Punishes Responsible Borrowers

Once again financially responsible Americans are being forced to take one for the team. The U.S. Senate voted 90-5 Tuesday in favor of a law that would put tighter restrictions on credit card companies, in an effort to keep unsuspecting borrowers from being duped into higher fees and rates. If the bill becomes law (and it is expected to easily pass the Senate and win President Obama’s signature)   it will effectively punish those who understand how credit cards work and who use them wisely. Among other things, here’s what the bill calls for: Borrowers under the age of 21... more »

Used Car Loan Legislation May Hurt Dealerships

In an interesting article on the News and Record of Greensboro, North Carolina, website, there is discussion on used car loans in financing.   Right now, with the way the economy is, getting a loan of any kind can be a tough proposition.   Getting a used car loans can be a nightmare experience. You have no way of knowing , really, if the deal that you’re getting on a car loan is the best that you can get.   Used car dealers shop loans for new and used cars to a variety of banks on a regular basis.  ... more »

Considering A Reverse Mortgage

People tend to get creative in times of trouble.   The last couple of years have been a real nightmare financially for a lot of people.   There is every indication that is only going to get worse.   Chrysler and   GM have slashed a record number of dealerships, putting a record number of people out of work.   I’d like to turn on the evening news some night, and get a little good news for a change.   I don’t see that happening for a while. One way that people are bailing themselves out right now is by... more »

Senate Strikes Down Credit Card Rate Cap

A proposal by Vermont independent Bernard Sanders to put a cap on credit card interest rates at 15% went down hard to a bi-partisan coalition.   The proposal got only 33 votes while 60 senators voted against. Major credit card reform is still in the works and some who voted against the proposal said they were against the cap because they thought it would doom the bill as a whole. According to Sanders, a third of Americans pay interest rates over 20% and some as high as 40%. ... more »

Go for Credit Counseling, Not Debt Settlement

Dire economic circumstances bring out the desperate side of a lot of people. And there are plenty of companies ready to take advantage of that weakness. Enter debt settlement companies. They make promises that they will cut your debt in half, or otherwise greatly improve your financial situation. Many sources recently have cried foul when it comes to these "money genies." A CBS news   post today decried these companies as shady corporations more likely to hurt than help. The author quoted New York Attorney General Andrew Cuomo who is fighting against unscrupulous debt settlement companies in his state: “Today,... more »