Mortgages and Real Estate

Don't let debt swamp your retirement

Jennie L. Phipps Jun 29th 2010 @ 12:00PM EST Filed Under: Borrowing, Credit, Debt, Real Estate, Retire, Saving Money, Refinancing

A friend of mine nearing retirement is looking longingly at a new Harley, but getting financing is going to be a challenge. He's contemplating refinancing his house and using some of the equity to buy the bike.

When he told me that, I didn't say anything, but I guess I didn't have to. My face must have done the talking. My friend is within 10 years of retirement. Unless he hit the lottery recently, he doesn't have a huge amount of savings and his job has been off and on the last year or two while the economy has been so lousy.

Continue reading Don't let debt swamp your retirement

FTC widens net in crackdown on mortgage relief scammers

Jorgen Wouters Jun 1st 2010 @ 3:30PM EST Filed Under: Borrowing, Recession, Consumer Ally, Mortgages, In the News

The Federal Trade Commission has named new defendants and added new charges to its lawsuit against an operation that allegedly defrauded homeowners trying to lower their mortgage payments. The action is part of an ongoing crackdown on scams targeting consumers behind in their mortgage payments or at risk of foreclosure.

The FTC has added as defendants Bradford R. Geisen; Maurice Jackson; Patrick Butler; Credit Services Alliance Inc.; and CreditLawGroup, a law firm run by two of the original defendants, John W. Smith and Glenn E. Gromann. The original defendants also included The Debt Advocacy Center LLC; Smith, Gromann & Davidson P.A.; and Kevin McCormick.

According to the FTC's revised complaint, the new defendants, along with Smith and Gromann, offered "forensic audits" - checking a homeowner's loan documents for violations that would give them leverage in negotiating with lenders to obtain more favorable mortgage payments or a "short sale" (the sale of a house for less than the mortgage balance).

Attempts to reach the companies for comment were unsuccessful.

Continue reading FTC widens net in crackdown on mortgage relief scammers

Use these tips to avoid overdraft fees

Martha C. White May 27th 2010 @ 9:00AM EST Filed Under: Banks, Borrowing, Credit

New rules that kick in this August require banks to substantially change one of their most-loathed policies: automatic enrollment in an overdraft "protection" plan that lets a transaction you don't have money to cover go through, then zings you with a $35 fee. The rules mandate that people will have to opt into these programs; banks can't enroll you automatically and without telling you. As we already warned you, banks are hitting back by sending customers letters making it sounds like they have to opt in for this "protection" or that something terrible will happen if they don't.

Well, our earlier advice still stands: You don't have to and shouldn't sign up for overdraft protection. But don't just take our word for it. Susan Weinstock, director of the financial reform campaign at the Consumer Federation of America, tells Walletpop there are other, less expensive ways to get short-term credit without having to incur a $35 fee each time. This article outlines several of those methods. Here's the bottom line:

The first and best way is to keep track of your spending. You can use an old-fashioned check register, check your balance online daily or sign up for alerts. Many of the major banks now offer you the option to get a message on your cell phone when payments are posted to your account or when the balance in your account drops below a predetermined limit.

If you're thinking about signing up for overdraft protection so your card doesn't get denied and leave you stranded, carrying a backup credit card isn't a bad idea, as long as you're disciplined enough to pay off that charge by the due date so you don't get hit with finance charges. For hotel or rental-car reservations, which can lead to a hold being placed on your card for a sometimes significant amount, a credit card is also a better pick so that hold doesn't lead to your account falling into the red.

Finally, we've told you before about alternatives to overdraft protection that link your checking account to a savings account or line of credit. While banks do charge for this service, it's generally a lot less than an overdraft fee, which makes it a viable alternative if all else fails. "The Consumer Federation of America is urging consumers to say no to overdraft fees" by opting out of your bank's offer of "protection," Weinstock says. After all, you work too hard for your money to hand it over to the bank $35 at a time.

Confessions of a Shopaholic: Avis Cardella, the author of 'Spent'

Jason Cochran May 25th 2010 @ 5:30PM EST Filed Under: Borrowing, Credit, Debt, Extracurriculars, Shopping, Bankruptcy, Video, Credit Cards, In the News

Avis Cardella was a compulsive shopper. She spent so much time in the department stores, the clerks knew her by name. Yet it wasn't purchases she needed. It was the high she got making them. While her closet piled higher with clothing never worn and stuff never opened, her addiction ruined her finances, her relationships, and her self-esteem.

She's not alone in this compulsion. In America, we have a conflicted relationship with our money. We're constantly encouraged to spend money as a prescription for happiness, but we rarely examine the dangerous emotional kickback we can get from the transactions.

In her new book, Spent: Memoirs of a Shopping Addict, Cardella takes a look at the neglected problem of oniomania, otherwise known as shopping addiction. She bares her personal story with me at WalletPop's studios.

Follow WalletPop's Jason Cochran on Facebook.

MyMoney website: A one-stop bonanza of financial information

Lita Epstein May 21st 2010 @ 3:00PM EST Filed Under: Borrowing, Budgets, Credit, Insurance, Retire

One-stop site for government personal finance information

Ever wish you could find one place to go for basic financial information about anything? If that's your wish, you'll find all that you need at the government's newly launched MyMoney.gov website, which was developed with financial information from 12 Federal agencies, departments and bureaus that make up the Financial Literacy and Education Commission.

"As America recovers from the most severe financial crisis since the Great Depression, it's critical that we strengthen every aspect of our financial system," Treasury Deputy Secretary Neal Wolin said in a press release announcing the launch of the site. "Financial education and access is a priority for this Administration, and we're pleased to provide this critical resource to help Americans find free, reliable and unbiased information that can help inform their daily financial decisions and plan for the future."

Continue reading MyMoney website: A one-stop bonanza of financial information

The tuition final exam: Who makes grade, who fails in keeping costs down

Madeleine Kuhns May 20th 2010 @ 12:00PM EST Filed Under: Borrowing, Money College, Debt, Student Loans

This week, you've heard from students and graduates with debt far beyond the average amounts. How far beyond? According to The Project on Student Debt, in 2008, a whopping 67% of graduating students at four-year colleges had debt: averaging $20,000 at public colleges, and nearly $28,000 at private schools.

Their stories aren't outliers. Higher education experts agree that reform is badly needed and solutions too often don't provide as much help as they could. State budget cuts, runaway building programs, top-heavy administrations and ever-expanding academic choices have all played a roll in runaway costs.

Continue reading The tuition final exam: Who makes grade, who fails in keeping costs down

Lucrative airline credit card offers on upswing

Jennifer Oldham May 18th 2010 @ 5:00PM EST Filed Under: Borrowing, Shopping, Travel, Credit Cards, In the News

Alaska Airlines increases credit card pitch

As I drank in the stunning views of a snow-capped Mt. Rainier on a recent Alaska Airlines flight from Seattle to Los Angeles, the flight attendants were on the loudspeaker upselling hard.

It wasn't whiskey, or perfume, or headphones that they were hawking, but rather the airlines' co-branded Visa credit card with Bank of America. It's the first time in my extensive travels that I've been subject to such a sales pitch.

After plugging their captive audience on the merits of the card -- a free flight upon approval, along with a $99 round-trip companion voucher on each yearly anniversary, both for use on Alaska, or one of 15 partner airlines -- attendants worked the aisles handing out application forms.

The attendants' names and airline codes were stamped on each lengthy fold-out brochure. The offer sounded promising at first -- until I waded through panel after panel of fine print.

Continue reading Lucrative airline credit card offers on upswing

Lending Club now offers five-year peer-to-peer loans

Josh Smith May 17th 2010 @ 6:30PM EST Filed Under: Banks, Borrowing

lending club, borrow, loan, peer-to-peer, personal credit problems, personal loan, signature loan

For borrowers who are looking for a personal loan, but don't qualify for the best rates at their local bank, peer-to-peer lending might be a good solution. Recently Lending Club expanded its personal loan offering by providing 5 year personal loans to borrowers and investors.

"Sixty-month loans allow sound borrowers to manage monthly payments more comfortably with the great interest rates of our peer loans." said Rob Garcia, Sr. Director of Product Strategy with Lending Club in an email to WalletPop.

Continue reading Lending Club now offers five-year peer-to-peer loans

Your worst credit problems are not as bad as you think

Lynnette Khalfani-Cox May 12th 2010 @ 11:00AM EST Filed Under: Borrowing, Debt, Bankruptcy

There's a cruel irony to navigating your finances amid the ongoing credit crunch.

On the one hand, maintaining a great credit rating is more important than ever - especially if you're looking for a job or need a loan of any kind. On the other hand, if you mess up royally in the credit department, rest assured that even the worst credit mistakes you can make probably aren't as bad as you fear.

Here's a look at a couple of the most severe credit catastrophes you can face - and why none of them is fatal to your financial life.

Bankruptcy

Bankruptcy is often described as the mother of all credit problems, and for good reason. A bankruptcy filing has very serious ramifications for your credit rating and typically stays on your credit files for 10 years.

But that doesn't mean you're a financial pariah for a decade. In reality, if you go through a Chapter 7 bankruptcy (where most of your consumer debts are wiped out), you'll likely be getting credit card offers and other loan solicitations just six to 12 months after your bankruptcy is discharged.

Continue reading Your worst credit problems are not as bad as you think

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