Tuesday, June 26, 2007

Today Is The Day Of Internet Radio Silence

Friday, June 15, 2007

If you could only have one Bookmark, make it Consumerist

But if you have 2, make the second www.moneyorbust.com.

Seriously, we all have just a little downtime everyday. I unequivocally recommend everyone read the consumerist. These folks work tirelessly to bring important news about evil companies and shine a light on good companies. (Not much light is really available.)

So give them a try... www.consumerist.com.

Creative Financing Doesn't Pay

Let me put it this way.... if the finance person across the table has to be "creative" to get you a loan, the bank doesn't think you will be able to re-pay it! If the bank, who's job it is to deal with money, doesn't think so... maybe you should reconsider!?

A report just came out from the Boston Globe that shows May Foreclosures were up 90% in May. Rest assured, if it was a different time those same customers that are now closing would have never got a loan... but thankfully they were shown the "creative light" and lead to the devil under the A.R.M. of the finance guy.

Here is what you need to know. When you go to buy a car/house/sofa, it is in the dealership/mortgage lender/furniture store's best interest to make the sale happen. Once you leave the building they get paid from the lender for the item you buy. THEY DON'T CARE IF YOU CAN PAY FOR IT!!! They are going to lie, cheat, steal, and get you to find a co-signer to make the sale happen so they get paid. I repeat, they simply DO NOT CARE if you can actually make the payments.

Of course, the solution, pay cash for everything. But when that isn't feasible remember these few things...
  1. If you can't afford to buy it, but will be able to afford it in the next 3 years you can probably wait and save the money yourself.
  2. If you have to get a loan, try to get it from somewhere different than the place you are buying the product. Go to your credit union and get preapproved for your Car Purchase. Don't go to the mortgage company your realtor recommends. NEVER USE STORE CARDS.
  3. If your lender has to be "creative" to finance you, you can't afford it. Examples of creativity are: need of a co-signer (even your spouse), need for a non-standard loan such as A.R.M. or balloon payments, need for multiple loans (cards or mortgages) to cover the entire purchase.
  4. Finally, as Dave Ramsey says, "90 Days is not the Same As Cash." Finance promotions are a RIP OFF. They are designed to make you mess up!!! Think about it, why would they give you money to use for free?