Sub-prime Debt - Who's To Blame?
- Date: 2008-02-02 - Word Count: 311
Share This!
When people get themselves into a financial fix it's normally through credit card debts or failing to meet mortgage repayments, either way they tend to become desperate and search for money through any means be it loans or in moments of blind panic - more credit cards.
If you end up in this situation where you are slipping when it comes to repayments then it's highly likely that your credit rating will start to tell a sorry story about you leading to many credit card and loan suppliers to turn their nose up at you.
Sometimes it isn't necessarily the borrower's fault that they are struggling, in recent news there has been a lot of talk about a credit crunch and in North America especially there has been a history of Sub-Prime Lending.
Sub-Prime lending is where a lender approves a form of lending such as a mortgage or credit card despite the borrower not being financially suitable and likely to be unable to repay the loan. A lot of financial companies have received considerable flak about this, citing that they have acted rather predatory on borrowers.
The problem is that it is not necessarily the lenders fault, a lot of sub prime mortgages or loans have been given to people who have lied about their ability to repay, a forgivable sin since it is often the case that people who need the money will be desperate enough to lie. In the case of sub-prime mortgages they are normally the ones that require little documentation to support their claim.
In America where sub prime mortgages have been rife lenders have offered mortgages with amazingly low rates to people who were on low incomes or debts and then the rates have risen exponentially down the line, this practice accounts for 21% of mortgage owners and has resulted in a large rise in homes being repossessed.
If you end up in this situation where you are slipping when it comes to repayments then it's highly likely that your credit rating will start to tell a sorry story about you leading to many credit card and loan suppliers to turn their nose up at you.
Sometimes it isn't necessarily the borrower's fault that they are struggling, in recent news there has been a lot of talk about a credit crunch and in North America especially there has been a history of Sub-Prime Lending.
Sub-Prime lending is where a lender approves a form of lending such as a mortgage or credit card despite the borrower not being financially suitable and likely to be unable to repay the loan. A lot of financial companies have received considerable flak about this, citing that they have acted rather predatory on borrowers.
The problem is that it is not necessarily the lenders fault, a lot of sub prime mortgages or loans have been given to people who have lied about their ability to repay, a forgivable sin since it is often the case that people who need the money will be desperate enough to lie. In the case of sub-prime mortgages they are normally the ones that require little documentation to support their claim.
In America where sub prime mortgages have been rife lenders have offered mortgages with amazingly low rates to people who were on low incomes or debts and then the rates have risen exponentially down the line, this practice accounts for 21% of mortgage owners and has resulted in a large rise in homes being repossessed.
Related Tags: debt, mortgage, loans, credit cards, sub prime
If you are struggling and need advice on debt management then don't waste valuable time, look into arranging your loans perhaps via debt consolidation loans or other methods of debt management to make sure you get the debt behind you. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Debt Settlement Programs In 2010 - Learn How To Get Your Debt Bought Out
Are you (interested in|searching for} some great information on debt settlement programs?Are you sea - Many Ways In Which A Debt Settlement Company Can Help You
Have a look at the latest figures of total personal debt in the United Kingdom. As per the reports, - Debt Consolidation Services Whats Best For You
A debt consolidation service is really a loan that is applied for to pay off pre-existing debt. Prec - Debt Consolidation Advice
If you don't know how to repay your various debts, and find your creditors chasing you for the payme - The Guide To Debt Solutions
By the end of 2009, the number of personal insolvencies that had been filed in courtrooms around Eng - What Debt Solutions Do You Have Available?
For people who find themselves in a difficult financial situation there are a number of debt solutio - Government Debt Management Help And Advice
No matter how good your money management skills are, there might come a time when you'll find yourse - Paradise Found With Debt Consolidation
Paradise Lost-Paradise Found with Debt ConsolidationIf your life and the life or your family is not - How To Consolidate Credit Card Debt?
Have you ever wondered if what you know about Consolidate Credit Card Debt is accurate? Consider the - A Very Simple Approach To Debt Reduction That Works.
Debt Reduction seems to have become fashionable and its not considered a dirty word anymore. The eco
Most viewed articles in this category:
- Help is Around With Consolidation Loans
If piling debts is a cause of concern for you, then read on to find the key to solve your problems. - Debt Consolidation Loans: it is Never Too Late to Mend your Ways
The fulfilment of desires in our lives is like mirage; the more you chase them, the more they seem t - Debt Consolidation To Avoid Further Damage To Your Credit!
So if you are beginning to miss payments or pay late and you fear your credit will get ruined, it's - Reduce Credit Card Debt by Managing Debt
Reducing your credit card debt is not easy, and requires planning and discipline. We all know that - Consolidate Debt Through a Bad Credit Mortgage
How can anything called a "bad" credit mortgage be considered good? You would be surprised that it - Debt Consolidation Loans - Bring your Finances Back on the Track
Debt consolidation loans enable one to pay off all his debts in one go. It is an option to merge all - Take Advantage of Credit Card Debt Counseling and Get Rid of Your Debt
We all know how credit card debt can creep up on us. The credit card companies are only too happy t - Time Share Your Way Into Debt
Cancun, do you want to live here for a couple weeks a year? Hey if you want to learn how come attend - Roll your Debts Into a Single Manageable Debt With the Debt Consolidation Loans
Are you deep into debt but clueless on how to get out of it? Are you losing your nerves keeping trac - Debt Consolidation - Is it Right for Me?
Many people search for a way to bring life back into their finances and relieve their ever growing
