Investors Be Careful with Reverse Mortgage Proceeds

By Diogie Vanrock

I don't suppose I need to tell you that we've lost somewhere around thirty five percent in value in the stock market in one year. Some seniors are now picking up their phone and calling me because of this.

They are looking to get a reverse mortgage. Of course the planets have to match up to their particular situation for me to entertain this with them.

When evaluating whether a reverse mortgage is the proper financial tool for any individual or couple I look at how long the borrower plans on staying in the home. This is important as the cost to obtain the mortgage are costly for short term reverse mortgages.

The longer one holds a reverse mortgage, or in a practical sense, stays in the home the cheaper the mortgage becomes on an annualized basis.

What some of these folks are wanting is to use proceeds to invest either back in the market or into other investments outside the market.

That which is really palatable now is that rates are so low. In particlular the adjustable rate, with a line of credit option, is quity low.

As of this week the ARM is just under four percent. In the short run this makes this loan pretty nice. In the longer run it's average is in the six percent range.

As a loan officer I'm not required to represent my customer's best interests. However, as an ethical person I do my best to discuss the costs as opposed to the return the customer will receive by investing reverse mortgage money.

They cannot expect the low rates to hold up forever and must consider these rates driving up to their average level.

It is true that most economists and people in the know (perhaps you've seen them on Fox) feel rates will continue to hang out at a low level for some time.

When rates are high it is difficult for big business to borrow. This is hardly ever good, especially when the economy is in such bad shape as it is now.

We'll have to see. My concern for some of these people is that some of these folks are not taking into consideration to true cost of getting this money to make their investments.

Whichever investment the borrowers choose should have very good returns to not only beat the interest rate on the money, but the cost of getting the reverse mortgage in the first place.

About the Author:

Get twenty California reverse mortgage questions and answers most people want to know at this site. And this.... Download a California reverse mortgage guide with myths revealed and 5 major mistakes to avoid.

Who is the Quintessential Reverse Mortgage Customer

By Kablamn Vanrock

As a loan officer working exclusively with reverse mortgages, I speak to many prospective borrowers on a weekly basis. I'm always in the process of evaluating them as real customers.

I'm not in the business of making a big magnet of myself and trying to get all of them to work with me. The fact is some simply shouldn't, and I tell them so.

If I were going to place a ranking on how good the reverse mortgage is for customers I'd say it would be bad, okay, good, and great. People fit into all ranking. Let's talk about great.

Closing costs are expensive for these mortgages. As such I'm very interested to know the time frame a senior plans on residing in the home.

Most important in my mind is to help my customer understand that their will be a fairly high cost to get the mortgage. My efforts are to ascertain the customers needs relative to cost.

The answer I like best from them is "until i die". This is best as the true cost of the mortgage, on an annualized basis, goes down the longer a customer stays in the home.

At loan application you would receive, from you lender of choice, a disclosure outlining how the mortgage reduces in cost, on an annualized basis, the longer the mortgage lasts.

The disclosure gives snapshots of the annual cost of the mortgage over various years. You'll see how cost reduces over time.

Along with a long mortgage period the best reverse mortgage customers are those without the ability to add income to a financial situation which is already under water.

Fixed incomes play an important role in making up the perfect reverse mortgage customer.

I'd say the final attribute of the perfect candidate is that of not having a vital interest in leaving a large inheritance to the kids. This group is thinking about the rest of their own lives rather than the rest of their kids lives.

Many have a mind set that they must leave something to the kids. It's vital to them. The reverse mortgage is a financial tool that allows a mortgage without paying monthly. Interest tacks on to the mortgage which doesn't normally give this group warm fuzzies.

To conclude we're looking for three things: "they're going to carry me out of the house", non-recoverable financial hardship, and lack of desire to leave inheritance to the kids.

About the Author:

Texas reverse mortgage facts can be found at this website convering many questions. Additionally, lots of knowledge about the reverse mortgage in Texas will be obtained by clicking this link.

Credit Repair via Credit Counseling

By Rob Kosberg

You may come to the decision that going through repairing your own credit is not something that you can complete without some outside help. There is no shame in having to locate some help because of your emotional reactions or poor money management ability.

When you open a newspaper or go online you will find an abundance of agencies with magical sounding claims about fixing your credit immediately if not sooner. You should be able to tell right away that such claims are nonsense. So, while you're surfing the net you notice that there are some claims to offer you a choice of agencies that, after you give them some of your information, will call you with help. They will call, but not right away. Then they will call again and again. Some may even b e nasty with you.

When you first read the claims of some of the agencies, you should be able to tell that the claims are ridiculous, such as: repair credit overnight. While those kinds of claims are fairly obvious, others are not. The internet will have ads for you to have several agencies contact you for help. You provide some information. What you might end up with are some annoying and possible nasty phone calls.

There will still be more research needed before you will be ready to choose your agency. You will need to know what is "must have" information. You should get information from more than one agency. Comparison shopping is definitely in order.

You need to be able to get the basic information about a company such as its services and fees without being asked for any of your financial situation. If you are not provided with this information do not go further with such an agency.

Once you locate agencies that provide you the initial information, you are going to want more questions answered. You will need to hear the effect this process will have on your credit report, the debt management services offered, possible money management workshops or seminars. You must know how the agencies will keep you apprised of their activities.

One of the most important pieces of information you will need to know is about any FEES CHARGED by the agency. Some may require large sums of money upfront along with large monthly fees. How could this work for you if you already can't pay your debts. Make sure you can handle any fees charged even if the agency says it is not for profit.

Using credit agencies requires effort on your part, but you should be able to find a reputable agency to partner with you, and have your interest at the forefront.

About the Author:

With never before seen challenges in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.

Having A Great Credit Score Is Fundamental

By Mark Cunningham

A healthy credit grade is crucial in our financially driven society. This number tells creditors, employers and business organisations that a individual is dependable and pays their charges on time. This type of info is in use in all walks of life. You must have a good credit history, if you wish to buy a motorcar, purchase a new house or even look for a new employment.

If you wish to buy a new home or automobile, then your credit history must be in healthy standing. To be able to buy luxury items like holidays on your charge card, you must first fix any credit problems you may have if you desire, long-term fiscal freedom. You can pick up this data without too much trouble and the good news is, it's free.

Each individual can find out exactly what their credit scoring is when they locate free business organizations on the web. There are businesses that will provide people with their credit score for free on an annual basis. After a few simple questions that the person would surly know off the top of their head, they can view their credit marking and any outstanding debts they may have. If an person sees that they have horrible credit or the credit marking will not allow them what they desire, there are various methods to remedy this situation.

The first step an person needs to do to have a higher credit grade is to pay off old debts. Even if this was for 10 years ago, it will assist in credit individual's credit scoring immensely. Once the accounts are totally wiped clean, an person can begin obtaining a no credit or bad credit Master Card or Visa. This will be helpful for a individual to begin acquiring a fabulous credit score and be able to buy their dream house or vehicle.~This can help a person to increase their credit grade, which will enable them to purchase a new automobile or their dream home. Paying off any old bills] will aid a individual increase their credit mark and aid them to buy luxury items on the credit.

It doesn't take too long to damage your credit rating, but it can take a number of years to get your credit grading back. Begin by purchasing one or two items on the new card and then paying it off instantly. Once you have shown your credit card business that you can pay off the balance rapidly, they will increase the amounts you can spend and at the same time step-up your credit rating.

Everyone has problems like this in their lifetime. Paying your accounts for a couple of months may be a trouble. All Of A Sudden your credit history starts to fall, this is when many people have problems with debt. There are methods to ensure that each individual can gain a fabulous credit marking once again. One or two bad months out of life does not need to detour a individual from finally acquiring excellent credit for the things they desire in life.

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It's time to clear things up on the subject of credit report online. Visit our credit scoring site.

? Subprime Mortgage Foreclosures: The Importance of Reading the Fine Print

By Michael Geoffrey

Even without good credit, owning your own home is a very real possibility, and that very advertising strategy worked on lots of current homeowners in the last several years. Snatching up low interest loans, these individuals were all too thrilled to have found such great loans from lenders who enabled them to move into their own homes.

Unfortunately, the majority of people who purchased homes by means of this type of mortgage did not carefully analyze the details hidden in the fine print of their loan agreements. Because of that, they had no clue that their interest rate was set to skyrocket after a few months or years. Since they were not expecting it, that interest rate increase made it impossible for the individuals who took the loans out to continue making payments on their mortgages. This sad situation is now happening all over the country.

The monthly payment increases that occurred as a result of the jump in interest rates were overwhelming for many homeowners. In some cases, people's payments more than doubled. This unexpected increase in interest rates left many people unable to make payments. They then found themselves being served foreclosure paperwork, threatening eviction if they were not able to pay off their mortgages.

When you are forced out of you home in this way, it is referred to as a mortgage foreclosure. Your home is auctioned or otherwise sold by the bank or lending agency you took your loan out with so that they can get a different person to live in the house and make the mortgage payments that you could not. Their only concern is to make money.

Protect Yourself

The best way to keep yourself from getting into a similar situation is to read all of the details found in the fine print of a loan agreement before you agree to or sign anything. If your interest rates are going to go up and you know that at the time you take out a loan, you will be able to prepare for the increase and budget yourself accordingly.

You need to develop the excellent habit of reading all of the fine print on any important papers you sign before you ever sign them, regardless of what the paperwork is for. Financing can be dangerous if you do not understand the details of your agreement and interest rates shoot up unexpectedly. This has caused many mortgage foreclosures.

Before they know it, many people find themselves homeless because they suddenly are no longer able to make their mortgage payments. By being a wise consumer and reading the fine print in any contracts before you sign them, you can keep yourself free of the misery of foreclosure.

About the Author:

Are you sick of buying financial guides that promise the world but just don't deliver on those promises? At the Finance Product Evaluations website, we offer unbiased reviews of many different products in the debt, credit, investing and real estate markets, to name a few. Visit http://www.financeproductevaluations.com to take a look at our latest reviews, such as our current top pick 37 Days To Clean Credit.

Selling and Buying San Antonio Home

By Jin Kim

Most people when they considering either selling or buying a new home they will wait until spring arrives to do so. But if you want to get a great deal on a home whether it is in San Antonio or any other city then you should look at buying it before the end of the year. There are plenty of reasons for you to consider buying a San Antonio home before the end of the year.

Below we look at some of the benefits to be gained from you deciding to buy your San Antonio home at the end of the year rather than waiting until the spring.

Benefit 1 - If you close on your new home by the 31st December then you are able to deduct mortgage interest, property taxes and points from your loan in relation to your income tax return. You also have the opportunity to deduct any interest costs associated with your home equity loan, which in the early years of the loan means you won't have so much interest to pay off.

Benefit 2 - A person who is trying to sell their home may be more motivated to do so by year end as they benefit from tax savings as you do when you buy. A person who is looking to sell their home before year end is going to be more willing to negotiate a price that means that they get the property sold. Currently because of the financial climate this is definitely a buyer's market so getting your ideal home may prove a lot easier than you first imagined.

Benefit 3 - Instead of buying an older property it is worth considering buying a new constructed one before the end of the year. In most cases as incentives to potential buyers, builders will add in additional items to the sale price to ensure that they have it sold before the end of the year.

As you can see from above there are plenty of reasons why one should consider buying a San Antonio home or a home anywhere else for that matter at the end of the year. Certainly as the real estate market stands currently you could end up purchasing the home of your dreams for a lot less than you thought was possible.

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When thinking about buying San Antonio Home, find tips at San Antonio Home, and San Antonio Home

401K IRA

By Raul Dutton

Planning for retirement is a vital part of life. No one wishes to be dependent on their loved ones for financial support when they are older, and no one wants to work until the day they die.

How do we avoid that? There are many different retirement planning methods to choose from. I'd like to discuss briefly an IRA and a 401K.

IRA 401K Almost all companies offer a 401k plan to their employees. In most cases, they will match your contributions 100% for a specified number of years or total amount.nThey have their reasons.

The employer has to have so many dollars on hand for everything in each employee's benefit package. So by offering to match your contributions, they are encouraging you to invest in the 401k fund, and they thus get more on hand dollars to invest and to claim.

Another reason is that they can use the funds to invest and actually make money from your contributions, thus allowing them to pay you back at time of retirement with the earnings from your own contributed dollars.

An IRA is also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.

There are many types of IRA and each person would do well to research them thoroughly to find out which is the best for their circumstances.

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Find out more about IRA 401K and other retirement plans.

Thrifty Spending

By William Blake

In order to live a thrifty life, you need to know more than just that you need to save money. It is also essential that you spend your money wisely. Consider the following ideas about what a frugal person can do with the money that they have worked hard to save.

Start out by making a list of the things that you need, want, and desire related to your money. Number the things you list in order of how important they are to you and try to estimate how much they would cost. Once you have your thoughts mapped out, you can go about making them a reality.

Paying more than the minimum payment on your mortgage each month or even just making one additional payment each year could mean that your mortgage gets paid off in half the time that it would if you always paid the minimum. Doing so will also save you lots of money in interest. When you make such additional payments, make sure that the money is being deducted from you loan's principal. Once you have the mortgage paid off, you can use the money you were accustomed to spending on that on whatever else you want.

Money you have been saving can be spent on home repairs and projects that you have long wanted to do. Some such projects might be simple, do-it-yourself jobs while others will require that you hire a professional. Money spent on making your home more beautiful will certainly be well spent.

Buy a newer pre-owned car. Even if your current vehicle is in good condition, you can get a newer pre-owned one. Your old car can be donated to a church, charity, or friend. Remember, though, that a newer car will be charged more in insurance payments.

Go on a dream vacation. If you plan your trip during the off season, you will be able to do more with less money and thus enjoy your vacation even more than you normally would.

Even though been frugal does mean saving money in case of unexpected costs, it also important to enjoy the benefits that come from working hard to save your money. Thrifty people should also save some money with the intention of using it to enjoy themselves in some special way.

Using the money that you have saved to congratulate yourself will be a great boost to keep on saving and living frugally.

About the Author:

Are you wondering if you could be negotiating lower payments on your credit card? You'll find lots of helpful information on the Debtopedia website at http://www.debtopedia.com

The Cost of your Credit Score

By Rob Kosberg

It is time for us to dig in and learn about how our credit scores affect us. Our credit score is a very important 3 digit number. Some of us actually have no idea what our score is. Sure we know that if our score is too "low," it's possible we will have difficulty getting a mortgage, automobile loan, credit card or any other kind of loan. These are the "biggies." We must increase our understanding of our score and the possibly unknown effects of a poor score.

When you are a "credit risk," you will be paying higher interest rates, if you can get credit at all. For example, if you mortgage a home for an interest rate higher than the norm, over the course of that loan, you will be paying thousands of dollars more in interest.

In addition to the "normal" loans we all know about, the credit score can affect you in a number of ways that you may never have thought about. Now is the time to learn about these areas.

When you apply for car insurance, the companies will utilize a credit profile for writing the policy. It seems that Homeowner's insurance companies have decided that, if you have poor credit, you will probably make more claims. So, up go the rates. Now you can start to realize that our credit profile is becoming more influential in our lives.

A very large concern is our health care and life insurance. Credit profile is again important. When people are unable to keep up the payments for these insurances, insurance company costs rise and so do our rates. Again, poor credit can be affecting these rates.

A person can be denied employment if a prospective employer runs a credit check and finds a low score. It's likely that many people are unaware of this possible cost of poor credit.

Our country is having a credit crisis. It will be more difficult than ever to get credit. Therefore, if you credit score is low and you are a "credit risk," you need credit repair. You may be in for a negative surprise so you need to get to work.

Now is not the time to ignore our whole financial situation. Keeping in mind what our poor credit may be costing us, now is the time to fix it.

About the Author:

With never before seen challenges in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.

Cleveland Home

By Won Kim

Selling your home is a very stressful period in one's life. You will constantly have people coming round to view it and looking closely at the kind of life you have led in it. In order to sell your home more quickly it is crucial that you stage it properly. Certainly the more one learns about how to show their home the much more quickly the property is going to sell whether it is in Pittsburgh, Cleveland or Memphis. In this article we offer a few tips that should help you to prepare your Cleveland home for selling.

Tip 1 - It is important that you make your home look as spacious as possible for the potential buyers. The best way of making your home look bigger is to get rid of clutter or any items that are not used on a regular basis. It is a good idea to place these items into storage as this will help you in the future as well. The more you get out of the house the less you will have to move once it has been sold.

Tip 2 - Before any potential buyers arrive turn on all the lights in the home, whether the viewing takes place during the day or at night. It is a good idea to make sure that all light fixtures are clean beforehand and if you can increase the wattage of the bulbs. This will further make the rooms look brighter and so further increase the illusion of space in them.

Tip 3 - Another thing you should do before you actually put your Cleveland home up for sale is to arrange to have all carpets within it cleaned. You can either rent a machine and do this task yourself or arrange to get a professional team into do it for you. Not only does it make the rooms look better but will remove any unsightly odors. Also at the same time it would be worth getting the furniture cleaned as well.

If you discover after having the carpets cleaned that some still look bad it is worthwhile spending some money on getting them replaced. Small details such as damaged or unkempt carpets could lead to a sale falling through as many potential buyers may wonder what other problems they will be faced with.

Above we have shown you some things to do when preparing your Cleveland home for selling. There are plenty of other things that you need to do, such as ensuring that all rooms remain tidy and clean. If you need to give specific tasks to specific family members to carry out prior to any viewings taking place.

About the Author:

For excellent tips on selling Cleveland Home, please review Cleveland Home, and Cleveland Home

Prepare an Expense Spreadsheet to Help You Plan for Retirement

By Michael Geoffrey

When you reach your retirement you will still have expenses. Now while you are planning for your retirement you need to try to plan a budget for those expenses. An expense spreadsheet for your retirement can help.

With an expense spreadsheet you can see how far the money you save for your retirement will go. It will help you make future projections about your expenses over the next 10 or 20 years. You can also use this expense spreadsheet to help you find ways to invest your money so that it will go farther for you.

A retirement planning expense worksheet will help you with your finances even now. It can help you organize and manage your finances today while you plan for tomorrow. There is no need to guess at how to handle your finances or how to plan for the future. With a good expense worksheet you can have total control with no guesswork.

A good spreadsheet helps you stay clear about what your financial situation is. If your goal is to maintain the same standard of living in your golden years as you are enjoying right now your expense worksheet can show you how to do that. It will help you identify areas where you may need to adjust your spending so that you can stay on track with your retirement goals. It gives you a clear view of the money you have coming in and what you are spending.

It is Wise to Plan for the Future

It is nave to think that things will not change in the future. Inflation is a fact of life. The financial world is ever changing. A good expense spreadsheet will help prepare you for these changes and will teach you how to adjust your plan if you find yourself falling behind.

You will be equipped in analyzing and strategizing your financial welfare and not be caught by surprise. You will be able to establish a solid and successful retirement plan. You will be able to finance your dreams and goals more effectively. You will be better prepared for the change that is about to take place in your life. You will be able to make better decisions and make amends to any short falls that you may experience.

A significant number of employees are never ready to face retirement and end up going back to work after retirement because they did not prepare themselves for the inevitable. The sooner you begin forecasting your income and expense for the future, the more confidence you will have when it comes time to retire.

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Is secured debt consolidation a good choice for getting your debt paid off? Find out more about how it works and whether or not it's a good choice on the Debt Smackdown website.

Why I Chose a Roth IRA Account

By Herbert Castillo

IRA's (Individual Retirement Accounts) come in different kinds each with its own unique benefits and defects. I am currently contributing to a Roth IRA. Here's a few reasons why.

The Roth IRA was implemented in 1997 as a way to encourage the American people to start planning for their retirement in their youth rather than relying solely on their 401k plan or social security. By encouraging individual retirement planning, ultimately they would ease the strain on social security by only using it for those who really needed it. How do they encourage people to use the Roth IRA? What benefits does it provide over the traditional IRA?

For starters, the Roth IRA contributions are not tax deductible. And, most people would probably consider that a bad thing. But think about this. If you contribute the maximum allowed $5,000 (2008 Maximum for under $100,000 annual) from your income and don't pay taxes on it at time of contribution, then that $5,000 fund is really about a $4,000 fund. On the other hand, if you contribute that same amount to a Roth IRA and don't deduct it from your income tax form, then it is a true $5,000 fund. Which brings me to my next point.

Second, after funds have been in the Roth IRA for 5 years, they can be withdrawn with no penalties or taxation. There are penalties and taxes applied to any withdrawals from a regular IRA before you hit 59 1/2 years old.

I like the Roth because I am young and occasionally have emergency needs (ie. new car, new roof). Since you are allowed to withdraw funds after 5 years, you can use it for any of these emergencies you may fall into. I am planning for retirement, and if ever the need arises I have the funds to cover emergencies too. Nice huh?

There are a few very strict withdrawal permissions that allow early withdrawal from a traditional IRA. For instance: You can use up to $10k from the account before 59 1/2 years of age for the purchase of a home. But as I mentioned before the rules are very strict. The buyer must be either the IRA holder, their spouse or a child of the holder, and they must have not owned a home in the previous two years. the other allowances follow suit with the strict circumstantial rules.

The Roth IRA suits me and my circumstances. But each person has their own goals and needs. So to find out which IRA is right for you, talk to a financial consultant about the options. Ask plenty of questions so that you can make an educated decision.

About the Author:

My name is Herbert Castillo and I am planning my retirement at age 21 with a Roth IRA Account I admonish all to plan for their future in their youth because it is the best possible time to do so.

Green Dot Credit Card - Review

By Dan Moskel

The Green Dot Visa is a prepaid debit card. Often this is used by individuals that do not have a bank account.

Card holders receive free direct deposit; this can save you money on expensive check cashing fees. It is accepted at millions of locations world wide.

There is no bank account required or credit check. It does have a monthly maintenance fee of $4.95 but this fee is waived if you deposit $750 or more monthly.

It is accepted online and over the phone. You can access your cash at almost one million ATM's world wide.

Frequent criticisms of this card are; the number of fees and poor customer service. It carries a reload fee of $4.95 when a MoneyPak is used to deposit funds.

MoneyPak's can be purchased at many retail locations including; Wal-mart, CVS, Kroger, Walgreens and many more. It does carry a $2.50 ATM withdrawal fee and a $9.95 card activation fee.

This card is issued by Columbus Bank and Trust Company and comes as a Visa or MasterCard.

They do offer an upgrade to Premier Membership; the advantage is you will receive priority customer service. This upgrade costs an extra $20.

Upon completion of your application you will be mailed a card in 7 - 10 business days. You can also purchase this card at many retail locations.

Frequently parents will use this card to teach a child how to manage money. It also gives parents an easy way sending financial help to students that are away at school.

This is a much safer alternative to carrying cash. Also your money is protected should your card ever be lost or stolen.

Using this will give you an easy method of staying within your budget and track your spending. It can also be used to pay your bills such as; utilities, cable, and internet...

In sum we do not suggest this card. We are alarmed at the extra fees for priority customer service. We feel that when it comes to your hard earned money everyone is entitled to priority service.

About the Author:

We suggest the prepaid Account Now Visa www.accountnow.com for a review visit us or for a review of the prepaid Baby Phat Rush Card.

Advanta Credit Card Scam

By John Monderine

I sit at my desk completely frustrated with Advanta. I opened up a business credit card with them 3 years ago and made a purchase of $6500 to help build my business credit for Rapid Recovery Solution, my Collection Agency. I have paid more then the minimum every month, on time. Three months ago I noticed that my interest rate seemed a little high. No where on my statement did it say the actual interest rate so I called the company. After 10 min or so I get a live rep on the line and they tell me it is 36.1%. Are they kidding, this must be a mistake. I have over a 750 score and never missed a payment. They said they sent me a notice in Aug that they are doing this due to a change in there lending methods. It turns out this is the second time this year they did this. I went from 8.99% in Jan 08 to 18.99 in Feb 08 to 36.1% in Aug 08.

Now, being in the industry for over 10 years I know that I need to watch my credit. I look for charges I didn't make and it is tough to scam me. I have seen it all but this takes the cake. They told me I am now at a high risk for default so that is why they raised my interest rate? That doesn't make any sense. They should lower my rate if they think I will default on my credit card. How will an increase in what you are charging me keep me from defaulting. Luckily, I have the ability to pay off this card today but I want everyone to realize that these companies have you by the short-n-curly's. Watch your statements and lookout for this scam.

FYI, In NY, the maximum interest rate is 30%. They are charging me more then the maximum allowed in my state. I will send a letter to the BBB, the NY Attorney General, the UT Attorney General and the Department of Consumer Affairs.

As a nation we are in deep trouble. If a credit card company can just raise my rate because they feel like it I am positive that 99% of their customers are also paying 36.1%. How many other credit card companies are doing this to innocent people? We need to fight back. I am going to tell as many people as I can.

Unfortunately, there is nothing we can do except payoff the card. I was told I am a high credit risk. I paid the bill in full after I realized the rate was so high and the next month I received another bill for more finance charges for about $255. I paid that bill in full. I just received another bill in the mail for $5.65 and my rate was changed to 37.99%. Another point higher.

I had a few minutes so I called again to see why the rate went up again and they said "Sir, you have been classified as a very high credit risk and as a company we can't risk you not paying your bill with us." I said "I just paid my bill in full with your company, I have never had a late payment with your company in three years, I have one mortgage on my house for $290K, 25 years left at a fixed rate of 5.375% and it is worth over $500k and almost zero credit card debt personally. I am in the fastest growing industry right now, CNBC expects the debt collection industry to grow at 25% a year for the next decade. What else would I have to do to receive a better rate?" The extremely rude lady said "Sir, you would need to send a letter to Santa Clause and maybe he can help you out."

The Government should put a maximum rate in place for the next year or so on all credit card debt. If the credit card companies are truly worried about consumers defaulting on their obligations, wouldn't it make more sense to lower the rate so we can continue to make the payments? By raising the rate, it only makes it harder to pay and more likely that a consumer will default. The credit card companies are preying on the weak right now hoping you don't pay so they can pound you with the highest interest rate. When you do default, they now have a higher balance to sell to a collection agency. In my eyes, this is a crime.

The Government doesn't care either. Instead of giving the banks 350 billion dollars, They could have sent $1151.98 to each US citizen to pay towards credit card debt. The banks still get the money but we the people get a little break on our bill. The average family of four would receive $4607.92 to pay off a credit card. They reason that the banks need the money so they can lend money again to us? Are they crazy? All the banks did was raise the interest rates on our cards and pocket the money without ever having to say what the money went towards. No accountability!

Now the geniuses in Washington are considering giving billions to the auto industry so they can produce more shit cars that we can't afford. How about giving the money to everybody with a current auto loan so we can pay for the car we already have. The money would still flow to the banks and auto makers via we the people.

Good luck America, your gonna need a miracle.

I feel better now. I was very upset prior to writing this blog. I hope everybody reading this realizes that if it can happen to me it can happen to anybody.

John Monderine Rapid Recovery Solution, Inc.

About the Author:

John Monderine is the President of Rapid Recovery Solution, Inc. a Debt Collection Agency. When you need help getting your Accounts Receivable collected visit his Collection Agency website for a free quote.