Of the many companies that do provide mortgages and other financial services to individuals, Household Finance Corp was one of the oldest and largest. The company was a descendant of Frank Mackey’s business started back in the 1870’s. By 1905 the company was one of the first to get into the field of consumer credit. His company was one of the first to create installment payment systems and by 1908 had expanded from the Chicago area to nationwide. Household Finance Corp was created in 1925 as a grouping of these offices. By the end of the 1920’s, Household Finance Corp ranked as one of the largest financial companies in the country. Continue reading
Loans
How Do Home Equity Loans Work?
If you need money, you may be considering a loan. While there are many options, a home equity loan is one of the most popular. But how do home equity loans work, anyway?
Your home equity is the amount your home is worth on the current market, minus the amount you owe on it. Sometimes, the lender will send someone to appraise the property to be sure of its worth before finalizing the amount they are willing to loan you. These appraisals can cost up to four hundred dollars, but you can generally have that cost worked into your loan payments. Continue reading
Adversary proceeding may discharge student loan debt in bankruptcy
The reason that student loans are not discharged in bankruptcy is not because it is impossible. Bankruptcy lawyers normally opt not to include an adversary proceeding as a part of your bankruptcy, which would be necessary if you were to eliminate your student loans through bankruptcy. Continue reading
Thinking about getting a loan to pay off debt?
Getting a loan to reduce your debt seems like backward logic. Multiple credit cards or expensive student loans may have put you in the red in the first place, so making another promise to pay later won’t sit right with you. However, a loan may be a good option if you have a steady source of income. Debt consolidation or home equity loans both have risks, but they may lead to lower interest rates. A key factor in the success of preventing new debt with a loan is amortization. Continue reading
Guaranteed Bad Credit Loans are Bad News
You know how the saying goes. “If it seems too good to be true then it probably is.” If this is true anywhere it is especially true when looking at guaranteed bad credit loans. If your poor credit report is keeping you from receiving a traditional loan, this may sound like a good option. But you should know that there are some limitations that could make this loan less desirable. Continue reading
0% APR Car Loans, Really?
The first important question to answer is: what is APR? Any kind of loan will include an interest rate. However, the interest rate does not include additional, hidden fees, insurance requirements, or other expenses. The combination of all of these is what makes up the APR, or annual percentage rate. In the Truth in Lending Act, the government not only simplified and made visible the other payments, it created a tool which allows consumers to compare prices and financing options more accurately and easily. “0% APR” says on the surface that the car loan you’re looking for doesn’t have any of these extra fees attached to it. Unfortunately, using low or 0% APR as an advertising strategy is very common, and if you don’t look at the fine print, you are likely to end up paying more than you bargained for. Continue reading
Stafford Loans 101
May people are starting to see college as an investment that is growing increasingly difficult to afford. If you have looked into financial aid, you may have heard of Stafford loans. Continue reading
The Dangers of Paying Off Debt With a 401(k) Loan
If you are in debt, there are many aspects of paying off that debt with a 401(k) loan that are very alluring. For instance, you will likely receive a very low interest rate on your loan, around 4.25%, and a lower interest rate means a lower monthly payment. The fact that you can borrow any amount (less than a quarter of your balance or $50,000) as long as you have money in your account does not help dissuade many borrowers. Despite these two facts, there are other factors that make this a poor choice to manage your debt. For instance, if you take out a 401(k) loan and decide to switch jobs (or are laid off), your employer will likely require you to repay the loan within sixty days. If you do not meet that deadline, the outstanding balance will be considered a distribution on which you will owe tax, and if you are under fifty-five a ten percent penalty will be tacked on as well. Additionally, some plans do not allow you to contribute to your 401(k) while a loan is outstanding, which results in two things. First, you will end up with a lower account balance at retirement, and second, since you will not been making contributions, your taxable income amount will increase, thus meaning you will pay more taxes. Continue reading
Getting Student Loans After Bankruptcy
If you are having financial problems, you probably notice the advertisements telling you that college graduates make more money on average than those who did not go. While you would probably love to make more money, you may be wondering how you can afford to go back to school. Traditionally, you may have considered a student loan, but if your credit score has been affected by bankruptcy, would you qualify? Continue reading
411 on 125 Home Equity Loan Rates
If you take the current market value of your home, and subtract from that what you owe on your mortgage, you get your home equity. If you ask a bank or credit union to lend you money based on this amount, you get a home equity loan. If you also have a good credit score and income, you can get the 125% Home Equity Loan Rate. Continue reading
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