The average credit card interest rate for people with fair credit has hit a shocking 21 percent, up more than 2 percent from only a year ago, according to industry group CardHub.
Credit card companies, which attract new customers with zero percent teaser rates and more rewards, have raised rates while their costs remain historically low, industry observers say.
Another rising and unsettling trend: More strapped consumers are taking pricey cash advance deals, a CardHub official warns.
These customers are forgetting the credit card woes of 2008, when delinquency rates rose because, as card companies stopped offering cheap deals, many consumers were stuck with high-interest card debts, he says.
WASHINGTON (AP) — Some student loan borrowers who had a parent or grandparent co-sign the note are finding that they must immediately pay the loan in full if the relative dies.
The Consumer Financial Protection Bureau says lenders have clauses in their contract that explain this could happen, but many borrowers are not aware of them.
The agency's ombudsman, Rohit Chopra, said complaints related to this issue are growing more common because the practice is catching so many consumers by surprise. Some borrowers told to pay back the loan in full have been making timely payments, Chopra said.
"While these acceleration options may have a legitimate business purposes, it seems that private student lenders and servicers may not always be acting in their own self-interest by accelerating balances and placing loans in default," the report said.
Here’s the rule I use to determine how much house you can afford based on your income – let’s call it to the 2x income rule. Simply, you should only spend two times your annual gross income on a house. I’ll discuss some other financial rules for home buying below, but this is the most simple.
This may seem low to some people, but if you want to control your money, this is a great way to do it. It’s easy to get sucked into spending the bank pre-approved limit which is usually much higher, but they don’t have all of your best interests in mind.
In addition to the 2x annual income rule, you should also try to pay 20% down and use a 15 year fixed loan. Easy as that, right? Of course not, but this will at least give you a guideline to think about.
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