| Use equity for friend with credit-card debt? Be careful
My friend has several credit-card accounts totaling more than $35,000 in debt. My friend has a steady, well-paying job. But the debt-to-income ratio is too high for the banks, so a personal loan could not be approved and tapping into home equity is out of the question. I have considered using my home-equity line of credit to help, but am very concerned about putting myself into that situation. It's a close friend, but someone whom I have known only for a couple of years. I'm also concerned about how this might appear to family and other friends. I do trust my friend and I want very much to help. I am looking for advice that will really help my friend and still keep me in a financially good position. _ Dan Dear Dan, Your intuition was right on when you became concerned about risking your home and financial well-being to help a close friend.
BNZ out to woo personal business
The cut-throat consumer banking sector moves into a new phase tonight, with the BNZ's launch of a new personal banking system it claims as a world first. Seeking to move away from an image as more of a bank for businesses, the BNZ hopes its new TotalMoney creation will help push its share of the home loan market from 16.1 per cent to 20 per cent. TotalMoney allows family groups and couples to pool accounts, so all can earn a higher interest rate. All will be able to see each other's balances, but will not have access to the funds or be able to see transaction details. It will also, for the first time, allow savings in one account to be "offset" against another person's floating home loan, forgoing interest, but making it quicker to repay the mortgage.
Why you should never take a loan from your bank
You can almost always borrow more money for less by shopping around online. Save yourself hundreds of pounds by not falling for the hype. Have you ever been tempted by the thought of borrowing thousands when your bank sends you a loan offer in the post? What about that moment when you ring up and they offer you an account review and you just know they actually mean to offer you a personal loan? Our advice is to steer well clear of most high street banks if you are looking for a loan. Most offer really poor value and you can do much better shopping around for cheaper credit. This is especially true if you are looking to borrow less than 7,500. Compare personal loan rates with our best buy tables High Street bank loan rates look good on paper The big banks are masters of the art of spin.
For Distressed Homeowners, Short Sales Stave Off Credit Ruin
Wednesday, April 4, 2007 | As a growing number of homeowners stare down the barrel of foreclosure, some are electing to negotiate with lenders to sell their homes at a loss, hoping to avoid the credit-marring implications of surrendering the home to the bank. Lenders might take losses of tens of thousands of dollars instead of repossessing the home and putting it up for auction. The auction process would incur additional costs for the bank and may result in a meager selling price. Homeowners, in turn, avoid getting slapped with a seven-year black mark on their credit. .
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