LATEST ARTICLES
- (
) Family Finances: Consolidate debts only as a last resort
There are a number of ways to consolidate debt and possibly lower monthly payments. Our advice: Consider debt consolidation only as a last resort. Generally, it comes with several drawbacks.Among those: Possibly a host of extra fees -- charged either upfront, annually or if you terminate the loan. Plus, you have another very real threat. You could consolidate all your debt and lower monthly payments only to accumulate even more debt if you still can't stop spending.
Nevertheless, if you're strong-willed and if lower monthly payments provide a viable way out of a financial bind, debt consolidation could be worth considering. Here are your loan options:
Home equity loan or home equity credit line. It's possible that interest on some of these loans may serve as an itemized deduction on your income taxes. More>>
- (
) Mortgage company says allegations are unfair and wrong
OMAHA — An Omaha-based mortgage company plans to fight state allegations of misconduct and will try to keep its state mortgage banking license.Bob Goldberg, president of Advantage Mortgage Service Inc., said the company conducts its business "in an exemplary fashion."On its Web site, Advantage Mortgage says it offers loans "for home purchases, refinancing, home equity allocation, debt consolidation and much more." . More>> - (
) Boss defends home loan 'formula'
Rudco CEO Rudi Visagie believes his "simple" business formula is a winner for consumers and has big banks and financial services brokers running scared. The National Credit Act regulates maximum interest rates and initiation fees, but no minimums, Visagie said in defence of his six percent interest rate on home loans. Visagie said Rudco was complying with the act by offering a maximum initiation fee of R150, plus 10 percent of the agreement in excess of R1 000, but limited to R1 140 (including VAT). A further proviso of the act is that the initiation fee may not exceed 15 percent of the principal debt. Rudco's "management fee" of R750 had been converted to an interest rate of 17 percent, said Visagie. Before June 1, when the act came into force, this was how Rudco calculated a R100 000 "debt consolidation" - what the act refers to as a personal loan: Capital outlay of R100 000 (this was used to repay people's debts, Visagie stressed, and no money was paid directly to clients); 20-year (240 month) repayment period; R750 management fee. More>>