Programmer wages – Amity Source http://amitysource.com/ Wed, 17 Aug 2022 10:00:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://amitysource.com/wp-content/uploads/2021/07/icon.png Programmer wages – Amity Source http://amitysource.com/ 32 32 The 3 best alternatives to personal loans, according to Dave Ramsey https://amitysource.com/the-3-best-alternatives-to-personal-loans-according-to-dave-ramsey/ Wed, 17 Aug 2022 10:00:31 +0000 https://amitysource.com/the-3-best-alternatives-to-personal-loans-according-to-dave-ramsey/ Image source: Getty Images Will any of them work for you? Key points Dave Ramsey doesn’t think taking out a personal loan is a good idea. He says this kind of borrowing is “absolutely not” worth it. He suggested a few alternatives, including setting a budget. Personal loans can come from banks, credit unions, and […]]]>

Image source: Getty Images

Will any of them work for you?


Key points

  • Dave Ramsey doesn’t think taking out a personal loan is a good idea.
  • He says this kind of borrowing is “absolutely not” worth it.
  • He suggested a few alternatives, including setting a budget.

Personal loans can come from banks, credit unions, and online lenders. They usually have a fixed repayment schedule and may have a more affordable interest rate than credit cards.

But despite the fact that they can be an affordable type of debt, financial expert Dave Ramsey says it’s “absolutely not” worth taking out a personal loan because of the “stress and financial burden” it entails. type of borrowing can cause.

So what does Ramsey offer as an alternative? Here are three options he says are better than a personal loan.

1. Living on a budget

Ramsey says budgeting is your best bet if you’re relying on personal loans to pay for day-to-day expenses like food and paying bills. “A budget helps you take control of your money by telling your money where to go before you spend it,” Ramsey says.

But while that may be true, the reality is that most people don’t take out personal loans to pay for their day-to-day expenses because it’s not really convenient. Applying for a personal loan can take time, most lenders require you to borrow a minimum of a few thousand dollars, and loans are repaid over several years. And you don’t have access to more money when you start paying them back.

Since people generally don’t plan on having an insufficient budget, applying for a loan of several thousand dollars, and then distributing the money over time to pay expenses, those who need to borrow for their daily expenses would be more likely to use a credit card instead. And since a card can cost more, they’d probably be better off taking out a personal loan if they needed that kind of help.

Living on a budget is definitely a better bet than borrowing to fund your lifestyle — so if that’s something you’re considering, you should heed Ramsey’s suggestion and plan how to spend within your means instead.

2. Save for big purchases

For those borrowing to finance things they can’t afford to pay all at once, Ramsey has another alternative.

“Instead of jumping on the personal loan bandwagon every time you want something, how about taking the time to save for it?” the Ramsey Solutions blog reads.

This advice is definitely good to follow as much as possible. If you borrow to buy things – even with a personal loan that can be relatively affordable – then you’re going to make all your purchases more expensive and it’ll be harder to live within your means later on. You want to avoid this whenever you can.

Of course, sometimes a surprise purchase comes up that you to have to Manufacture. If so, sometimes a personal loan can be a cheaper way to finance it than a credit card. So you’ll want to explore both options to see which one makes sense in this situation.

3. Take a debt repayment plan seriously

Finally, Ramsey suggests taking debt repayment seriously rather than using a personal loan to consolidate and refinance debt. Her favorite debt repayment plan includes saving a $1,000 emergency fund first so you don’t have to borrow once you start paying off your debt. Next, he advises to pay off your loan with the lowest balance first so that you can get quick gains.

While this plan might make sense to many people, it’s not necessarily a bad thing to use a personal loan with a lower interest rate to pay off as much of your low-interest credit card debt as possible. interest or your payday loan debt. A personal loan can lower your interest costs, and it comes with a set repayment schedule so you know when you’ll be debt-free.

So while Ramsey’s alternatives to a personal loan may sometimes make sense, the reality is that a personal loan may be your best option in certain circumstances. Be sure to weigh Ramey’s advice carefully and decide if it really makes sense for you to avoid personal loans as he suggests or if this type of borrowing could help you in the long run.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Student loan refinance interest rates drop for 10-year fixed rate loans https://amitysource.com/student-loan-refinance-interest-rates-drop-for-10-year-fixed-rate-loans/ Mon, 15 Aug 2022 19:03:22 +0000 https://amitysource.com/student-loan-refinance-interest-rates-drop-for-10-year-fixed-rate-loans/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The latest student loan refinance interest rate […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

The latest student loan refinance interest rate trends on the Credible Marketplace, updated weekly. (iStock)

Pricing for Qualified Borrowers using the Credible Marketplace for refinance student loans fell this week for 10-year fixed rate loans and rose for 5-year floating rate loans.

For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender during the week of August 8, 2022:

  • Rates on 10-year fixed-rate refinance loans averaged 5.46%, down from 5.75% the week before and 3.46% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of January 10, when they were at 3.44%.
  • Rates on 5-year variable rate refinance loans averaged 3.99%, down from 2.79% the previous week and 2.59% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of July 4, when they were at 2.51%.

Weekly Trends in Student Loan Refinance Rates

If you’re curious about what kind of student loan refinance rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.

Current Student Loan Refinance Rates by FICO Score

To ease the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least August 31, 2022. As long as this relief is in place, there is little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of low interest rates to refinance their student debt at lower rates.

If you qualify to refinance your student loans, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you are seeking (fixed or variable rate), and the repayment term. of the loan.

The chart above shows that good credit can help you get a lower rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Since each lender has their own method of evaluating borrowers, it’s a good idea to ask for rates from multiple lenders so you can compare your options. A student loan refinance calculator can help you estimate how much you could save.

If you want refinance with bad credit, you may need to apply with a co-signer. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.

You can use Credible to compare rates from several private lenders at once without affecting your credit score.

How Student Loan Refinance Rates Are Determined

The rates charged by private lenders to refinance student loans depend partly on the economic environment and interest rates, but also on the duration of the loan, the type of loan (fixed or variable rate), creditworthiness the borrower and the lender’s operating costs and profit margin. .

About Credible

Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without putting their personal information at risk or affecting their credit score. The Credible Marketplace delivers an unparalleled customer experience, as evidenced by over Over 5,000 positive reviews on Trustpilot and a TrustScore of 4.7/5.

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Why the Federal Reserve’s interest rate hikes could make personal loans more attractive https://amitysource.com/why-the-federal-reserves-interest-rate-hikes-could-make-personal-loans-more-attractive/ Sat, 13 Aug 2022 11:00:33 +0000 https://amitysource.com/why-the-federal-reserves-interest-rate-hikes-could-make-personal-loans-more-attractive/ Image source: Getty Images This is the perfect time to consider a personal loan. Key points Personal loans are flexible and allow you to borrow money for any purpose. These loans offer a key advantage over credit cards and other variable interest rate borrowing products. In June, the Federal Reserve did something it hadn’t done […]]]>

Image source: Getty Images

This is the perfect time to consider a personal loan.


Key points

  • Personal loans are flexible and allow you to borrow money for any purpose.
  • These loans offer a key advantage over credit cards and other variable interest rate borrowing products.

In June, the Federal Reserve did something it hadn’t done in years: it raised its benchmark interest rate by 0.75%. And then, in July, he did the same thing again.

The Fed intentionally raises interest rates in an effort to slow the pace of inflation. In recent months, Americans have plundered their savings and racked up dozens of debts just to meet the rising cost of living. By raising interest rates, the Fed wants to make borrowing more expensive so that consumers start spending less, thereby reducing the gap between supply and demand that triggered this runaway inflation spurt in the first place.

Now, to be clear, the Fed does not directly set consumer borrowing rates. Rather, it oversees the federal funds rate, which is what banks charge each other for short-term borrowing. But when those costs rise, they tend to be passed on to consumers in the form of higher credit card interest rates, mortgage rates, and auto loan rates, to name a few examples.

If you need to borrow money, it’s important to do so in the most cost-effective way possible. And in light of recent interest rate hikes, you might want to look to a personal loan for your borrowing needs for a few key reasons.

1. You can borrow at a more competitive rate

At a time when borrowing has become expensive, it’s important to find an option that allows you to pay as little interest as possible. And in the battle of credit cards versus personal loans, personal loans win big. Squeezing a lower interest rate on the amount you borrow could result in much more manageable monthly payments, not to mention savings over time.

2. You can lock in a fixed interest rate on your debt

The danger of borrowing money through a product like a credit card or HELOC (home equity line of credit) is that these products tend to come with variable interest rates. This means that your rate could increase over time, making your payments more expensive.

When you take out a personal loan, you get a fixed interest rate on your debt, so you don’t have to worry about that rate going up when you pay off the amount you owe. Instead, you’ll have the security of having fixed monthly payments.

How to get a good deal on a personal loan

The higher your credit score at the time you apply for a personal loan, the more likely you are to qualify for a competitive interest rate. If your credit score needs work and you can wait a while to borrow money, it’s worth trying to boost it.

At the same time, it’s a good idea to shop around with different lenders before signing on for a personal loan. You never know when a lender might step in with a more competitive rate than the others, so take some time to do some rate shopping.

That said, you don’t just want to focus on your loan interest rate. You should also pay attention to the fees or closing costs that you will be charged to finalize this loan.

At a time of rising interest rates, consumers need to be more careful when borrowing. A personal loan could be a smart way to borrow money in light of the Fed’s recent interest rate hikes, especially since they may be far from over.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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A Debt Trap: Should We Worry About Rising Personal Loans in India? https://amitysource.com/a-debt-trap-should-we-worry-about-rising-personal-loans-in-india/ Fri, 12 Aug 2022 10:46:22 +0000 https://amitysource.com/a-debt-trap-should-we-worry-about-rising-personal-loans-in-india/ Indians relied on borrowed money as their income dried up during the Covid-19 pandemic: Outstanding credit card debt defies the gravitational pull of persistent inflation and slower growth Credit cards are India’s staggering Rs. 1,529 billion. 35 trillion personal loans Lending against gold jewelry was at a higher level at the height of the pandemic […]]]>

Indians relied on borrowed money as their income dried up during the Covid-19 pandemic:

  • Outstanding credit card debt defies the gravitational pull of persistent inflation and slower growth
  • Credit cards are India’s staggering Rs. 1,529 billion. 35 trillion personal loans
  • Lending against gold jewelry was at a higher level at the height of the pandemic

People are spending more than they take home, forcing families to dip into their savings or borrow money to make up the difference.

why is it important

Pandemic-induced financial strains and high inflation are pushing households to take on more debt, especially loans tied to durable consumer credit card payments and fixed deposit loans.

In numbers

The data suggests that by borrowing more, consumers kept retail spending at higher levels as inflation rose. The Reserve Bank of India reported that personal debt soared to Rs. 35.2 trillion at the end of June this year. At the same time, interest rates began to rise from historic lows and retail price inflation jumped to an eight-year high of 7.4%.

“June 2022 was the sixth consecutive month that headline CPI inflation remained at or above the upper tolerance level of 6%. Looking ahead, the path of inflation continues to be heavily dependent on the changing geopolitical developments, international commodity market dynamics, global financial market developments, and the spatial and temporal distribution of the southwest monsoon,” The RBI Governor said Last week.

The total outstanding amount of personal loans has jumped by nearly Rs 10 trillion over the past two years.

In June 2022, personal credit grew at an annual rate of 18%, double percentage points (nine%) from July 2020 before the peak of the COVID-19 pandemic.

Consumer debt levels rose across all categories, but mortgage, vehicle and credit card debt were the main driver of the overall increase. Home loans have soared by almost Rs. 4 trillion since July 2020, outstanding car loans have increased by almost Rs. 2 trillion, credit card debt has jumped by Rs. 515 billion, and the debt classified as “other personal loan” in the report rose by Rs. 2 trillion. However, loans against stocks and bonds remained stable at around Rs 3 billion only.

READ | Hiring Accelerates in July 2022, Executive Positions See Maximum Growth

These facts raise two questions: what caused this mountain of debt to arise and what are the consequences? First, since real wages for most of the working population have stagnated or fallen, especially since the start of the pandemic, people have responded in part by borrowing to maintain or increase their standard of living.

Is increasing personal debt good or bad?

Ideally, household savings and spending drive the economy. Spending creates demand and saving promotes investment. But in times of financial stress, consumption matters more than savings. A recession hits savings, while consumption deteriorates after exhausting all available financial resources, including borrowing.

The current trend is not alarming, but relying on personal demand based on credit for a certain period can create a big challenge for the economy. Historically low interest rates or no-fee EMIs and intense competition among lenders have pushed millions of Indians to borrow to buy homes or durable consumer goods.

The big picture

Demand for personal loans surged in the first quarter of fiscal 2023. Outstanding personal loans increased in April. After a slight moderation in May, it jumped again in June. Maximum growth was reported in consumer durables and gold loans, followed by vehicles and credit cards.

Growing personal debt is not only rising in India. In the United States, household debt topped $16 trillion for the first time in the second quarter of 2022 to cope with ongoing record inflation. Credit card user balances also grew by $46 billion over the same period, a 13% spike with the biggest year-over-year jump in 20 years, the New York Federal Reserve announced Last week.

The Covid-19 pandemic has led to a spike in household debt relative to the GDP rate. According to research by the State Bank of India, household debt rose sharply to 37.3% in fiscal 2021 from 32.5% in 2020 (BIS estimates are 37.7% in December 2020). However, the bank hope that household debt as a percentage of GDP “decreased to 34% in the first quarter of FY22 with the proportional increase in GDP in the first quarter, although it increased in absolute terms”.

According to Document from the Bank for International Settlements, in the short term, the rise in household debt is fueling consumption and GDP growth. In the long term, if the share of household debt in GDP exceeds 60%, it can harm the economy. However, the situation in India is not alarming since the share of household debt in GDP is below this level.

— ENDS —

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Student loans and taxes | Kiplinger https://amitysource.com/student-loans-and-taxes-kiplinger/ Tue, 09 Aug 2022 09:30:07 +0000 https://amitysource.com/student-loans-and-taxes-kiplinger/ Student loans are among the most common sources of debt in the United States. It has been reported that approximately one in five Americans has student loan debt totaling over $1.7 trillion. If you’re one of those people, you’re probably waiting to hear if, in these times of high tuition and inflation, part of your […]]]>

Student loans are among the most common sources of debt in the United States. It has been reported that approximately one in five Americans has student loan debt totaling over $1.7 trillion.

If you’re one of those people, you’re probably waiting to hear if, in these times of high tuition and inflation, part of your federal student loan will be canceled or if the federal government’s pause on student loan payments and interest will be extended. (Stay tuned: news on the student loan forgiveness front is expected soon from the Ministry of Education.

In the meantime, however, it may be worth brushing up on some of the ways having a federal student loan can affect your taxes.

Student loans are not considered income

A typical question surrounding student loan debt is whether a student loan is income for tax purposes. The happy answer is no, the IRS does not consider student loans as income.

Taxable income generally consists of wages and salaries. The IRS also considers unearned income (for example, gains or profits from the sale of assets or stocks) to be taxable. Thus, since student loans are debts intended to be repaid with interest, they do not constitute taxable income and do not have to be declared as such on your income tax return.

You can sometimes deduct interest on student loans

Another good news about student loans and taxes is that you may be able to deduct the interest you pay on your student loan on your tax return. This deduction can potentially save you some money at tax time.

Currently, due to pandemic relief, student loan payments and interest are suspended until the end of August. However, normally when you pay interest, the IRS allows you to deduct either the amount of interest you paid in a given tax year or $2,500, whichever is less. Also, you don’t have to itemize your deductions to claim student loan interest, because the IRS considers student loan interest an adjustment to your income.

To claim the student loan interest deduction, you must have paid interest on what the IRS calls a “qualified student loan.” It is basically a loan that has been taken out to pay for college fees for you, your spouse, or a dependent.

But whether you can claim a deduction for student loan interest depends on several other factors as well, including your filing status and income. This is partly because the student loan interest deduction is phased out based on the amount of your modified adjusted gross income.

For example, if you are married and want to claim the student loan interest deduction, you cannot file separately, and you and your spouse cannot be claimed as dependents on your tax returns. someone else. Also, your modified adjusted gross income must remain within a specified amount.

In 2022, if your modified adjusted gross income is less than $70,000 (if you are single) or $145,000 (if you are married and filing jointly), you can deduct the amount you paid or $2,500 , whichever is lower. However, single filers with adjusted adjusted gross income between $70,000 and $85,000 or married filers with income between $145,000 and $175,000 would see their student loan interest deduction reduced. This is because their modified adjusted earnings are higher.

You can find more information about the student loan interest deduction on the IRS website.

Student loan forgiveness may or may not be taxable

While it’s important to know whether student loans are income and whether you can deduct student loan interest on your taxes, the question of the day is whether federal student loans will soon be forgiven. What if part of your student loan is forgiven, it will be good news – if, of course, the cancellation of the student loan is not taxable to you.

Whether you are taxed on the amount of your federal student loan that is forgiven is complicated. This is partly because there are different types of student loan programs and repayment plans. And it’s unclear how a large-scale federal student loan forgiveness program would treat canceled or forgiven debt for tax purposes.

Generally, the IRS treats canceled and canceled debt as taxable income. There are a few exceptions to this that have applied to student loans recently, mainly due to legislation passed during the COVID-19 pandemic. For example, the American Rescue Plan Act (ARPA) suspended student loan forgiveness taxes from 2021 to 2025 for individuals whose student loans are classified under the Income Oriented Repayment Program. ARPA has also provided similar relief under other reimbursement programs.

In addition, student borrowers whose loans have been canceled under the Civil Service Loan Cancellation Program, are also currently exempt from tax on remitted amounts. (Eligibility for this program was also expanded recently).

As a result, you’ll have to wait and see if a large federal student loan forgiveness materializes and, if so, whether the forgiven amounts will be taxable.

Employer repayment assistance may be taxable to you

In light of the pandemic in 2020, Congress passed the CARES Act, which contained provisions allowing employers to contribute money to their employees’ federal or private student loans.

Under CARES, employers could directly contribute $5,250 each year tax-free to employee student loans. This student loan repayment assistance from employers has been extended to 2025.

If your employer offers this benefit, it is currently a way to reduce your student loan debt that is tax-free for you. However, as this is a form of debt forgiveness, it is unclear whether after 2025, when the tax relief is due to expire, your employer student loan repayment assistance will be or not taxable to you.

Failure to repay your student loan can create tax problems

The data shows that a third of borrowers have already defaulted on their student loans, some more than once. But due to the recent pandemic relief (mentioned earlier), many borrowers who defaulted on their loans have been able to regain their good standing over the past couple of years. However, with the current inflation spike and looming recession, it’s hard to say whether this so-called “fresh start” student loan relief will translate into fewer defaults.

Before default relief was introduced, the penalties associated with defaulting on student loans could be significant and included things like high negative points on your credit score and wage garnishment. The tax consequences of defaulting on your federal student loan were also severe. For example, the federal government could seize your tax refunds and even part of the refundable portions of certain tax credits.

Even though student loan payments are currently suspended, if you think you might not repay your federal student loan, contact the Department of Education or your loan servicer to inquire about any available loan rehabilitation programs.

Various tax forms are associated with student loans

When you have a student loan, the interest you pay on it is declared to you on Form 1098-E if you paid at least $600 in interest during the tax year. (But remember, you probably haven’t been paying interest lately due to the pause on interest and student loan payments).

Normally, Form 1098-E is mailed to you, but you can also find a copy of your Form 1098-E on your loan officer’s website or by contacting your loan officer. You use the information provided on the form to claim the student loan interest deduction.

Another tax form that may be related to your student loans is Form 1098-T, which shows the amount of eligible tuition and related education expenses you paid during the tax year. Form 1098-T can be useful for claiming education tax credits which could also help reduce your tax bill.

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Are federal student loans even “loans?” » From forbearance to forgiveness to taxpayers’ expenses. Fairer: Authorize bankruptcy https://amitysource.com/are-federal-student-loans-even-loans-from-forbearance-to-forgiveness-to-taxpayers-expenses-fairer-authorize-bankruptcy/ Sun, 07 Aug 2022 11:56:54 +0000 https://amitysource.com/are-federal-student-loans-even-loans-from-forbearance-to-forgiveness-to-taxpayers-expenses-fairer-authorize-bankruptcy/ The educational and industrial complex laughs all the way to the bank. By Wolf Richter for WOLF STREET. One person’s loan is another person’s asset. If the loan is cancelled, the property is destroyed. It’s like that. No one is making payments on government-backed student loans anymore, after two years of forever indulgences, countless campaign […]]]>

The educational and industrial complex laughs all the way to the bank.

By Wolf Richter for WOLF STREET.

One person’s loan is another person’s asset. If the loan is cancelled, the property is destroyed. It’s like that.

No one is making payments on government-backed student loans anymore, after two years of forever indulgences, countless campaign promises of forgiveness, various targeted forgiveness programs already in place, and now the big problem, the program of general forgiveness being abolished.

Total outstanding student loans, assuming they are still “loans,” remained at $1.59 trillion in the second quarter compared to the first quarter, according to the New York Fed. Household debt and credit report. They have been relatively stable since the first quarter of 2020, as new loans have been added, while hardly anyone has made payments, and the many rebate programs reduce the count on the other side.

Federal student loans.

Federal student loans account for about $1.3 trillion of that $1.59 trillion total in student loans, according to a separate report of the New York Fed. The rest is made up of Federal Family Education Loans (FFEL) held by commercial banks and private loans.

These are the $1.3 trillion in federal loans that were all moved into permanent forbearance in the spring of 2020, and are now due for forgiveness.

The median federal student loan balance is $18,773, which means half of federal student loan balances are below $18,773 and half are above.

The outliers everyone is talking about, the loan balances of $150,000 and $200,000, were accrued by a small percentage of borrowers going to law school, medical school, etc., whose most now have well-paying careers and do not need loans. sorry at all.

Delinquencies “resolved” forever.

The amount of student loans past due for 30 days or more has fallen from the official 9.4% of total pre-pandemic balances to just 1%.

For federal student loans, the delinquency rate is 0%. All were automatically enrolled in forbearance programs in the spring of 2020, which have been renewed many times and are still in effect. When a loan is forborne, it is reclassified as ‘open’, not ‘overdue’, regardless of the payment status.

FEEL and private student loans, which were not enrolled in forbearance programs, accounted for all of the defaulted loans.

Student loan forgiveness and cancellation.

In addition to the list of existing student loan forgiveness programs – public service loan forgiveness, teacher loan forgiveness, closed school leave, and others – there is now forgiveness when students feel the complex educational-industrial fucked them.

So last Thursday, a federal judge granted preliminary approval for a settlement that would forgive $6 billion in student loans from more than 200,000 students who said they were defrauded at 153 mostly for-profit colleges.

Few of these schools have been held accountable. So it’s the taxpayers who will pay the $6 billion, not the educational and industrial complex that has gotten the $6 billion over the years, laughing all the way to the bank.

And the big problem, a general forgiveness program is currently being developed by the administration. The proposal started with $10,000 discount per borrower. But this taxpayer greed leaves many voters deeply frustrated, and the anger boils over, putting politicians under pressure to buy more votes, or buy back the same votes, by increasing the amount of the rebate to perhaps $50,000. with income caps.

Then the automatic loan forgiveness… Just kidding, sort of.

The average transaction price for new vehicles is nearly $46,000 and the average advertised price for used vehicles is $28,000.

By comparison, the median government-backed student loan is $18,773. Just another consumer loan. It’s not the end of the world to have to pay $200 a month for 10 years – and salary increases and inflation over 10 years will reduce that burden.

And if people can’t even make a $200 payment, they can’t make a $400 or $800 payment on an auto loan either. So when are we going to buy votes with promises of car loan forgiveness?

It is unfair that people who buy a car because they have to drive to work have to pay back those loans. We need a general car loan discount. The government could simply buy back all outstanding auto loans and then forgive them, up to $50,000 each, perhaps with certain income caps, like $250,000 per individual and $500,000 per married couple filing jointly.

Think of it this way: it would be a huge boost to the economy because instead of making car payments, these people could then waste their money on other things.

It ain’t fair, but fairness ain’t got nothing to do with it.

The government (taxpayers) financed these student loans by borrowing from the Treasury bill market. He then handed over this borrowed money to the educational and industrial complex via the students, expecting to be repaid most of the money, plus interest, by the borrowers after they started working. Their payments would have helped the government pay off debt incurred to fund student loans. But it’s over. Going forward, the taxpayer repays the borrower’s loan.

In other words, the server who would have liked to go to college but couldn’t afford it now has to pay off the student loans of the software engineers who went to college. It’s not fair, but fairness has nothing to do with it. It’s about buying votes. And they hope the server can’t figure that out.

Let the bankruptcy courts decide what is unloaded and how much borrowers have to pay each month.

Borrowers cannot currently obtain discharge of their student loans in the bankruptcy court system. But they found something much more attractive to get rid of their debts: politicians willing to buy votes with other people’s money, namely with taxpayers’ money.

But it doesn’t have to be that way. These same politicians could change the law to allow the release of student loans in bankruptcy courts.

So it would be a judge deciding how much that Stanford-graded coder can pay each month for the next 10 years, and how much that OSU-graded teacher can pay each month. And the judge can then acquit the rest that cannot be paid. Personal bankruptcy has operated this way since the Bankruptcy Reform Act of 2005. In personal bankruptcy filings, people cannot simply walk away from all of their debts.

Student loan borrowers would then consider whether to resist and make the payments; or declare bankruptcy, get the spot on the credit report, get a portion of student loans canceled, if any, and make payments under a court order for many years.

This system is already in place for personal bankruptcies. It’s not perfect, but it works. And that would relieve borrowers who really can’t pay. And that would be a lot fairer to everyone, including the waiter who can’t afford to go to college and doesn’t really want to pay off the student loans other people have taken out to get their degrees .

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Consequences of not paying debts and loans on time https://amitysource.com/consequences-of-not-paying-debts-and-loans-on-time/ Fri, 05 Aug 2022 18:55:08 +0000 https://amitysource.com/consequences-of-not-paying-debts-and-loans-on-time/ Everyone, from wealthy business magnates to those living in poverty, takes out loans for a variety of reasons. When we don’t have a lot of money, there will be times when we need to take out a loan to meet our immediate needs. With the loans, you can easily repay in monthly installments at a […]]]>

Everyone, from wealthy business magnates to those living in poverty, takes out loans for a variety of reasons. When we don’t have a lot of money, there will be times when we need to take out a loan to meet our immediate needs. With the loans, you can easily repay in monthly installments at a fixed interest rate for a pre-determined period. However, you may encounter difficult circumstances, such as unemployment, bankruptcy, accidents, health problems, etc. What happens if you cannot repay your loans in such a situation?

Effects of default

Even if you miss a payment on any Payday LV loan, banks and lenders will contact you by mail or e-mail. As a borrower, you can contact the bank diligently, explain your repayment situation and ask them to restructure the loan in terms of term or interest. If you don’t repay your loan for more than three months, the lender will take legal action against you. Late payments will also incur default interest, which may increase over time. All the data relating to the credit of the loans that you contract are transmitted by the credit establishments to the credit organizations. Default payments will hurt your credit score and make it harder to get a loan in the future.

  • For home loans, failure to repay the loan will, after following legal procedures, result in your property being auctioned off by the lender.

  • For auto loans, non-payment will result in seizure of the vehicle.

  • Personal loans are unsecured loans and the borrower will be prosecuted by the bank for dishonored checks in criminal or civil proceedings.

  • For gold loans, the maximum repayment period is often 12 months, and if you are unable to make the payments, the lender may auction off your gold.

Increase in interest rates

For failing to make payments on time, most creditors impose fines and additional fees. The creditor often decides to increase the current interest rate on your existing debt in addition to assessing fees. As a result, the balance increases every month. It is conceivable that the debt will reach such a point that you cannot make payments. In this case, the credit bureaus will receive information about the new balance and the higher interest rate.

Deductions

If you stop paying your obligations, your creditors can take legal action to recover the money you owe. quick loan online. Your paychecks can be held by the creditor until the debt is paid whenever a court finds you responsible. This implies that a specific portion of your take home pay will be reduced as the creditor will apply a portion of your paycheck to the debt you owe.

Bankruptcy

If you don’t repay your debts, they could accumulate to the point that you have to declare bankruptcy to seek compensation. There are downsides to declaring bankruptcy even though it stops collection agency calls, garnishments, and most debts are erased. Your ability to obtain new credit and new financing may be negatively affected for many years after filing for bankruptcy, which may remain on your credit report for up to 10 years after filing.

job search

Some employers perform credit checks on potential hires. A cashout on your credit report can prevent you from being recruited, especially for financial management or higher positions. Employers need your written consent before they can access your credit file for a background investigation. You can refuse to give your consent, but this is unlikely to improve your application more than a bad credit history. Just as lenders are required to provide you with a copy of the report when they refuse a red payday loan request, employers cannot deny you a job based on the facts in your credit report without also providing you with a copy.

Action plan

The first suggested course of action might be to speak with the bank and let them know that you cannot repay the loan. The banks will then advise you on how to repay your debts. You could ask them to lengthen the duration and reduce your NDE. When your loan’s interest payments exceed its principal, you can choose to pay off the debt. But it will show up on your credit history and impact your credit score. Always keep in mind that lenders and credit bureaus do not consider a loan account “closed” simply because it has been “settled”.

It’s best to get a copy of your credit report first and check the status of any outstanding loans. A credit report will list all of your defaulted accounts, and you should consider paying them off by contacting your previous lender through Overdue Payment Services. This will repair the damage done to your credit history and save you from unpleasant encounters with lenders about unpaid debts. Borrowers have a legal right to be heard and treated with respect, and it is unethical for the bank to treat them unprofessionally. When you are required to appear in court for the seizure of your property, seek legal assistance from a lawyer. Make sure you can manage your repayment with your existing income before taking out loans in case the scenario gets complicated later.

Conclusion

Only borrow money from PL nearby if you can pay it back. And when you borrow money, develop the discipline to make your payments on time. Make sure you have enough money in your account a few days before payment. Do not skip more than three consecutive home loan EMIs. Your credit rating will be affected in the long term. Take the necessary precautions to prevent your responsibilities from being passed on to your heirs. Loans are practical and can help us through difficult times or meet our needs. They can, however, cause a great deal of anguish if used carelessly.

© 2022 NatureWorldNews.com All rights reserved. Do not reproduce without permission.

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Personal loans are increasingly being used by financially vulnerable consumers, JD Power report finds – here’s why https://amitysource.com/personal-loans-are-increasingly-being-used-by-financially-vulnerable-consumers-jd-power-report-finds-heres-why/ Tue, 02 Aug 2022 22:26:42 +0000 https://amitysource.com/personal-loans-are-increasingly-being-used-by-financially-vulnerable-consumers-jd-power-report-finds-heres-why/ article Financially vulnerable consumers are increasingly turning to personal loans, opening the door to other credit options, according to a JD Power report. (Stock) Personal loans slowed significantly amid the COVID-19 pandemic, but have since regained momentum, according to a JD Power report. According to the JD Power 2022 US Consumer Lending Satisfaction Study, competitive […]]]>

Financially vulnerable consumers are increasingly turning to personal loans, opening the door to other credit options, according to a JD Power report. (Stock)

Personal loans slowed significantly amid the COVID-19 pandemic, but have since regained momentum, according to a JD Power report.

According to the JD Power 2022 US Consumer Lending Satisfaction Study, competitive rates, easy access, and a variety of options have led to increased demand for personal loans, especially among the financially vulnerable population.

“Increasingly, personal loans are filling the void left by the end of pandemic-era relief efforts, bringing an important new dynamic for banks, credit card companies and fintechs at the center. of this market,” said Craig Martin, CEO of JD Power. and global head of wealth and loan intelligence, said. “As customers are largely satisfied with these products and the market continues to grow, it’s important for lenders to ensure that the experiences they offer match the promises they make to support better financial health. “

If you’re looking to take out a personal loan, comparing your options can help you get the best possible interest rate for your financial situation. Visit Credible to find your personalized interest rate without affecting your credit score.

INFLATION REACHES NEW 40-YEAR HIGH IN MAY WITH NO SIGN OF SLOWING DOWN

Financially Vulnerable Consumers Tackle Debt With Personal Loans

In its report, JD Power classified approximately 38% of personal loan borrowers as financially vulnerable. These consumers took out a personal loan to repay a debt or for a debt consolidation, to lower their interest rate on their current debt and to reduce their monthly debt payment.

Some lenders cater specifically to high-risk borrowers and have double the average number of financially vulnerable consumers, according to the report.

“As the personal loan market continues to grow rapidly, it’s critical to note that there is no single option that can do it all for all consumers,” said Tom Lawler, head of consumer intelligence. consumer loans at JD Power, said. “We are seeing a clear phenomenon in which industry-level averages provide perspective, but the experience of certain customer groups at the brand level may be materially different.

“The most successful companies have a clear understanding of the different needs and expectations of their target customers and optimally invest resources to meet or exceed the expectations of these different groups,” Lawler said.

When comparing consumer satisfaction among personal lenders, Goldman Sachs’ Marcus ranked first (776 on a 1,000-point scale), followed by US Bank (757) and American Express (754).

If you want to take out a personal loan, shopping around and comparing different rates and lenders can help you find the best option for you. Visit Credible to compare multiple lenders at once and be prequalified in minutes.

MILLENNIAL AND GEN Z CONSUMERS TURN TO BNPL SERVICES AS COSTS RISE: SURVEY

Personal loans open doors to other financial products

Customer loyalty after taking out a personal loan hit an all-time high in 2022, according to JD Power. Overall customer loyalty has increased to 61% of loan customers, meaning they are likely to use their lender again.

This provides an opportunity for lenders who historically only offered personal loans, allowing them to expand with new financial products such as checking, savings, credit cards and investment options. It also presents consumers with new financial options, allowing them to potentially improve their financial situation.

If you’re looking to take out a personal loan, using a financial marketplace like Credible can help you compare multiple options at once. You can also contact Credible to speak to a personal loan expert and get all your questions answered.

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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StanChart, the most expensive I&M loans ranked https://amitysource.com/stanchart-the-most-expensive-im-loans-ranked/ Sun, 31 Jul 2022 21:01:40 +0000 https://amitysource.com/stanchart-the-most-expensive-im-loans-ranked/ Capital markets StanChart, the most expensive I&M loans ranked Monday 01 August 2022 Standard Chartered Bank branch on Kenyatta Avenue in a photo taken January 3, 2020. PHOTO | NJAU SALATON | NMG I&M Bank and Standard Chartered have the highest cost of credit among tier one lenders in Kenya, with external or third party […]]]>

Capital markets

StanChart, the most expensive I&M loans ranked


Standard Chartered Bank branch on Kenyatta Avenue in a photo taken January 3, 2020. PHOTO | NJAU SALATON | NMG

I&M Bank and Standard Chartered have the highest cost of credit among tier one lenders in Kenya, with external or third party fees proving a key differentiator in the cost of lending among the big banks.

The Cost of Credit website developed by the Kenya Bankers Association (KBA) and the Central Bank of Kenya (CBK) shows that a borrower who takes out an unsecured personal loan of one million shillings for one year from I&M will incur a total cost of credit of 127,140 shillings.

A similar loan at StanChart has a cost of 117,745 shillings, followed by Equity Bank at 114,057 shillings and Co-operative Bank at 111,929 shillings.

These charges include interest on debt and other internal and external charges such as bank charges, legal fees, insurance and government levies.

The lowest cost of credit, according to the site, is for an Absa Bank Kenya loan at Sh76,147. It does not, however, indicate whether there are bank and external charges on the loan.

The other four lenders charge between 95,807 shillings (DTB) and 107,207 shillings (KCB) for their loans.

Tier 1 lenders have 12.65 million loan accounts on their books, accounting for 97% of the total in the banking sector, according to the CBK banking supervision report for 2021. They also grabbed 75% of the total deposits and industry assets.

The publication of cost of credit information for personal loans and mortgages on a common web platform was launched in mid-2017, with the intention of making it easier for customers to choose between lenders when applying for credit.

Previously, comparing loan prices between different banks was difficult for bank customers, whose only option was a cumbersome physical trip from one institution to another when seeking a loan.

Based on currently published loan prices, there is a limited spread in terms of loan interest between top tier banks, with the spread stemming from bank charges and external fees.

KCB, Equity, NCBA and DTB charge interest at 13%, with I&M at 14.3%, Stanchart at 14%, while Absa and Stanbic charge 13.77% and 13.65% respectively.

DTB published the lowest non-interest charges at Sh24,000, while the highest charges are for I&M loans at Sh48,000.

Lenders have turned to unfunded revenue from these fees to generate revenue due to their limited ability to raise interest rates before getting their risk-based pricing models approved by the CBK.

Only Equity Group revealed it had received price approval, but yesterday the CBK said more than half of banks had already had their risk-based models approved or signed off with the regulator.

These approvals will allow banks to vary interest on credit based on a borrower’s risk profile, with the expected result of improved access to credit across the economy.

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Messages wrongly offer ‘Biden stimulus loans’ https://amitysource.com/messages-wrongly-offer-biden-stimulus-loans/ Wed, 27 Jul 2022 18:45:35 +0000 https://amitysource.com/messages-wrongly-offer-biden-stimulus-loans/ Copyright AFP 2017-2022. All rights reserved. Social media posts advertise “Biden stimulus loans” of up to $40,000. But Congress has not approved any such program, and the website linked in the posts is operated by a private loan broker with no ties to the US government. “(July 2022) We’ve been waiting for this and CNBC […]]]>

Copyright AFP 2017-2022. All rights reserved.

Social media posts advertise “Biden stimulus loans” of up to $40,000. But Congress has not approved any such program, and the website linked in the posts is operated by a private loan broker with no ties to the US government.

“(July 2022) We’ve been waiting for this and CNBC just announced it!” said a Facebook of July 20, 2022 Publish. “Stimulus loans up to $40,000 are finally available. The application process only takes 1-2 minutes.”

The post features photos of US President Joe Biden and what appears to be a check. Similar Facebook messages refer to a website that directs to an online site loan broker solicit nominations.

Screenshot of a Facebook post taken on July 25, 2022

The website does not mention a link to a government program – and the Biden administration has not approved a stimulus loan package.

“This is not a government program or government assistance, this is an infomercial for a lending service,” reads a disclaimer on the website shared in posts.

The US rescue planwhich Biden signed on March 11, 2021, included emergency grants and business loans aimed at offsetting the economic impact of the coronavirus pandemic. But the package did not include personal loans, as the publications suggest.

A spokesperson for the US Treasury Department told AFP that the site’s offering “is not a government program to my knowledge”.

The White House has proposed an additional economic plan called Building back better. But this does not include a personal lending program, either – and the measure has not past Congress.

The online posts are the latest in a series of misleading social media posts that advertise private loans under the guise of government assistance.

AFP has already denied other inaccurate claims about offers of financial aid here and here.

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