Posts Tagged balloon payments
Posted by in lifestyles on August 6, 2011
By now, everyone who hasn’t been hiding out under a rock has heard about the subprime mortgage fiasco. Banks lent money to people who didn’t qualified for it by using twisty, unethical strategies like “liar loans” (literally falsified loan applications, which is otherwise known as loan fraud), the deliberate targeting of people who weren’t in a position to understand what they were getting themselves into and slick sales pitches designed to hide the true cost of interest rate jumps, exorbitant fees, balloon payments and other surprises. As a result, wave after wave of foreclosures, bank failures and other financial disasters have been racing through the American economy (and the economy of other countries).
So what does that have to do with self-help? Simply this: The subprime crisis is directly related to the skewed way we as Americans look at money, debt and personal wealth, and how we act on these views. Until we learn to recognize these issues and take steps to eliminate them, history will simply repeat itself in more and more damaging ways.
Here are some of the issues that lead to the subprime mortgage collapse. Do you recognize any in yourself? If so, how are they affecting your decisions, and what sort of danger could you be letting yourself in for? Read the rest of this entry »