Debt Loans

Debt Loans questions and answers

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Q: how do you sell short student debt loans ?
how do you sell short student debt loans ? just like other debt instruments ?

A: I would agree that SLM is one way to do it, but so is FMD. FMD has seen its shares decline dramatically, and it's entire business model relies on debt securitization, which is not happening and is a huge drag on earnings. However, I cannot understand why you would want to short student debt out of all possible debts. If you are unaware, student debt is one of the very few debts that cannot be forgiven, even through bankruptcy. Therefore, student debt loans are the least risky of all, as they have forever to try to collect loans, and reality is that the majority of loans (approximately 65%) that enter default are usually collected within 7 to 10 years after default. I just cannot see a valid argument for trying to short student debt, as default rates would be dramatically higher for other types of debts. Just another point to support that is that most people that take on loans generate enough income to pay for the debt, as the payments and interest rates are low. Therefore, credit card debt, or practically any other debt would be much more rewarding as a short position. I would also venture my opinion that you are probably pretty late to this party, given that the problems in the credit markets have been very pronounced for nearly six months now, and all of the smart money has probably been in and made the easy money by now. I would much rather have a long position in FMD than I would a short position, as 1. all of the bad news has been factored into the stock price for months, and 2. any good news that is announced will cause a dramatic pop in the stock price. Just take a look at what happened when Goldman announced they were going to buy stock in FMD, shares rose over 60% that day alone, that's one horrible short position. I just think there are better opportunities out there, but they are at best, risky, as the news has been out for a long time now, and much of the bad news has been factored in for a while. If you plan on being short SLM or FMD, you might want to consider hedging the position, as any position in either of these companies, long or short, is risky now. In all sincerity, I would like to hear why you picked student loans, as its not a very thought about topic. Just my opinion, I hope it helps. Best of luck! Brendan Prewitt

Q: What is compounding and why is it so important in decisions such as comparing investments, loans, debt payoff?
What is compounding and why is it so important in decisions such as comparing investments, loans, debt payoff order.

A: Compounding means you don't take money out of a fund; you leave the interest in there to earn more interest. For example, if I have $100 and I earn 10% in the first year, I have $110. If I don't add any more money, but leave that interest in the account, the next year at 10% I earn $11. This is the power of compounding. Most people get rich by saving early, then leaving the money alone for 20 years or more - compounding takes care of the rest.

Q: How to pay off college loans/debt?
What are my options? I know there is something about loan consolidations. I know if you join the armed forces they usually pay off your debt. I know there are loan forgiveness programs for teachers, whereas they can teach at low income school districts and have their loans paid off. I am a sociology major who wants to work with children in the future. If you took out loans while in collge, how did you pay off your debt?

A: If you fit into the criteria, then you should move ahead to the next step, which is talking to the consolidation company and asking them to contact your creditors to reduce your monthly payments and interest rates. Just as with any other loan, student loan repayment affects your future prospects of loan-taking. If student loan debt goes beyond eighty-five percent of your total income, it is seen as a negative score in your future credit assessment.

Q: Do loans in deferment count towards your debt when you apply for a mortgage?
My fiance and I have a lot of student loan debt but we'll be taking courses at least half time so we don't have to pay them back yet. Would a mortgage lender consider that when calculating how much we can borrow for a house? Deferment, for those of you who don't know, is when you don't have to pay back your loan because you meet certain criteria. It's different than default, which means you didn't pay it under the terms to which you agreed.

A: NO! NO! NO! There are so many loan officers that think that it does, and it GETS counted. Remember, you are applying for a 30-year mortgage and the deferrment is only for 12 months...so what are you going to do when the deferrment period is over? I can't tell you how many times I had an LO waste a customer's time getting those worthless letters of deferrment, only for me to have to tell the customer that we couldn't take it. PS: ...and this crap about it being the "mood" of the underwriter...ALL LOANS HAVE WRITTEN GUIDELINES on how student loans are treated...the guidelines are plain as day...no deferrments are accepted in the DTI calculation, if no payment is listed, they will use 1% of the balance to calculate a monthly payment in the DTI calculation.

Q: What company or companies gives out debt consolidation loans to people with bad credit?
I want to know if you personally found a company which considered your case and gave you a loan even though you have bad credit and outstanding balances. I have researched enough about counseling and debt consolidation loans. I just want to know who has actually gone through the process and which company you used. Thanks

A: if someone wants to get out of debt today it is pretty easy with a debt consolidation plan however it may get a bit tricky at times, I suggest you get as much information as possible online on this first, a good place to start in my humble opinion is: http://umgarticles.atspace.com/debt-consolidation.htm

Q: Where can I find debt consolidation for "private" student loans?
I am a young professional that is over my head in private student loan debt and credit card debt. I have found several companies willing to help me with my credit card debt but no luck with the private student loan debt because it is not considered "secured" debt. My interest rates on these loans are over 20% making my monthly payments total $700. Because I have credit problems in the past I am considered a "high risk" thus unable to get the banks to reduce my interest rate. Does anyone know of an agency that is willing to help people with "private" student loan debt? I am looking for some type of debt consolidation that would reduce my interest rate and lower my monthly payment. Please keep in mind these are private student loans not government loans. Thanks in advance!

A: Credit card debt is not secured debt either. I don't know what difference it makes. You are paying for your past bad behavior. You can keep shopping around and see if you can find a lender who's willing to let you borrow at less than 20%. You might have to struggle for a few years on a very tight budget until you get matters under control. Congress expanded the types of student debt that cannot be discharged in bankruptcy. I don't know if yours falls into that category, but it is getting very difficult to walk away from student debt.

Q: Does it matter if you hold debt through student loans or through credit cards?
I have a chance to transfer a great deal of my student loan debt to a lifetime APR on my credit card that is 4% lower. Would this have any detrimental effects on my credit? My debt wuld stay the same, but the source would be different.

A: i am a retired CFP & CPA & independent insurance broker- i helped people with financial matters for over 32 yrs before retiring- have you ever heard the expression- watch out- if something looks too good to be true- it probably is, too good to be true-and there is a catch there, somewhere !!- i am not an expert on credit now-adays- yet here are some important things to consider--the 4% lower APR is tempting, yet how can you be sure its a lifetime guarantee-i dont know of any credit card that guarantees its interest rate for any certain period-except short term, to get new card holders, with a low- introductory interest rate for a short time period--also, is your student loan rate gtd. or can it fluctuate with the prime rate or some other index?? also- i believe student loans are pretty flexible on repayment terms to give you time to start your career before heavy payments are due--by lumping your student loan in with your credit card balance your monthly payment could rise significantly ?? who knows-check this out?? also--if a potential employer checked your credit- your consumer credit amt due would seem very, very high and no one would know it was a student loan that made the amt so high and you might be rejected as an applicant, without being able to know or explain why ??!! also- student loans may be partially forgiven if you teach school or some other occupation in economically poor areas--your student loan amt would disappear by combining it with your credit card- and might make you in-eligible for this benefit-- i would check with a bank officer or a knowledgeable credit person from a local commercial bank--ask them how credit shows up and is classified today- and seek answers and expert counsel from them--stay away from credit repairers and ads-most of them are fakes or not really knowledgeble--also go to the holder of your student loan and ask their advise-what are the positives and negatives of the two different loans ?? get expert advise because this is important- and dont make the decision without plenty of information and questions answered--caveat emptor-let the buyer beware--be carefull & good luck to you, young man !!!

Q: Are there any debt relief agencies that help with secured debt. Such as car loans and student loans?
Debt relief agiencies that help with secured debt. Student loans and car debt.

A: creditinfocenter com Federal Trade Commission website also for Consolidation Company and what to watch out for.

Q: Why can people get loans that are in debt deep?
My mom is in debt deep and takes out loans all the time to either pay the mortgage or pay off another debt. Why do loan companies allow this, except for the fact that they don't care?

A: But take a look at the interest rate.It's steep enough so that if some do default, they still make money.

Q: As a renter does anyone know a way I can consolidate my student loans with other debt?
I have a lot of debt in student loans, some credit card debt and an auto loan I need to consolidate in one long term loan. I don't own a home I rent and I have not been able to find anything that will give a large long term loan to a renter. Does anyone have any ideas?

A: You would not want to do this. Keep your student loan in a government backed student loan with a low interest rate and options for payment deferment and forbearance. You lose all of these options once you pay it off with another loan. Also, auto loans are secured and cannot generally be added in with other credit card debts. Maybe you should meet with a credit counselor if you are having trouble meeting your debt payments. Consolidating student loans and car loans are a bad idea.

Q: What should I do to handle my debt? Loans? Consolidation?
Ok so im about $6500 in debt. I have a credit score of 696 the last time I checked but recently have had a very bad run of jobs. I am now with a GREAT company (Alltel) and bring home about $2000-$3000 depending on sales. But right now im at the point to where I cannot keep up with my credit card bill, loans and unpaid debts. I need to try and get all of my bills (About 10) into 1 easy payment. Over maybe a couple years time. (Not including car payment or insurance.) I was considering debt consolidation but then was told that my credit will be ruined and I definitely dont want that to happen but I may if theres no other alternative. If I look into bank loans where should I try? I have a credit score of 696 but cant even get a department store credit card.

A: stop using the cards. pay off the highest interest cards first. scale back. see a debt counseling service

Q: If I move to a foreign country what happens to my debt amd student loans?
I live in Texas but I am moving to Australia next year. I have about $70,000 in unsecured debt, medical bills and student loans. Would this have an adverse effect on my new beginnings in a foreign country??

A: Not if you continue to pay the debt off. If you think moving will absolve of the need to pay you're wrong. Credit agencies report world wide.

Q: can any one tell me best site for debt consolidation loans to payoff all my debts?
I have to payoff bad credit loans, personal loans, unsecured loans. Please tell me name of best site to consolidate all my debt loans.

A: I suggest u to go http://www.adverse-credit-debt-consolidation.co.uk and take debt consolidation loan to become debt free

Q: I need a loan for debt consolidation, are there 1 year loans based on salary?
I have some significant debt to eiliminate, the problem is interest payments. I make around 50K a year, and if i had that in a lump sum payment i could eliminate all of my debt in one year and keep my current lifestyle. My question is, do any financial establishments offer a one year loan? If not are there any other options out there for me? I'm totally open for suggestions.

A: well, I don't promise anything but people in debt often seem to find some help here : http://credit-cards.ebookorama.com http://credit.ebookorama.com http://credit-repair.ebookorama.com and here http://finance.ebookorama.com good luck!

Q: debt consolidation loans- what can I do about all my debt?
I have maxed out credit cards and they raised my apr due to a mistake in my payment and it was late, usually i'm on time or early with my payments and always pay the minimal. I'm trying so hard to get out of debt but with my apr raised, i feel like i'm drowning in debt. I have read some info on debt consolidation loans vs. other methods, which is best and what can i do? i probably have really bad credit right now due to the max'd out limits and the "penalty pricing" increase in my apr. I would like to find a way to consolidate debt to lower the rate and possibly lower the payments but i don't want to get into a situation that will end up leaving more of a scar on my credit report. Can anyone help me out? where do i go from here?

A: Hi, First, the only things that effect your credit with regard to your CC's is current balance vs. Limit and payment history-- they have no idea if you are under a 'penalty APR'. That said, a loan is not always the way to go-- First, its important to have 'revolving debt' and not just installment debt. Second, HISTORY is important, so you dont always want to close accounts if you've had them for more than a year or two-- longevity is important. Have you called your companies and tried to negotiate? MOst of them work with you! All you have to do is say that you're trying hard to get your CC's under control and you can make X amount each month, what can they do to help you? I've had late fees reversed, APR's cut in half, etc, etc. And if you dont have luck, try again in a day or two-- I noticed some customer service reps try hard to help you and some have "tough luck" mentalities, even tho they both work for hte same company. Try your best to arrange this first before doing the loan thing. ANd if you DO do the loan thing, consider paying the cards off and slicing them but leaving the accoutns open to help your Credit score-- but only do this if you can resist temptation!