Canada’s lending industry is witnessing rock-bottom interest rates and unrelenting competition.
The former has fuelled borrowing volumes. The latter has been known, on occasion, to encourage looser lending criteria.
Together, the two can be destructive to a banking system and economy.
That’s why OSFI (Canada’s banking regulator) is being proactive. In a speech today, OSFI head Julie Dickson laid it out like this for financial institutions:
- Low rates have likely “increased the incentive for consumers – again – to borrow. Banks also
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If you’re currently the proud owner of a mortgage, you’ve undoubtedly heard of a cash-out refinance, one that allows you to tap into your home equity.
They were quite popular during the housing boom, when homeowners serially refinanced and simultaneously pulled “cash” from their homes while property values skyrocketed.
You may have also heard the phrase, “using homes as ATM machines.”
The downside to this seemingly lucrative practice was that these homeowners’ mortgage balances also grew as they refinanced.
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You don’t just get free money. If you refinance
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Its been talked about for a while now but Senator Bernie Sanders (I-VT) has introduced a bill that would remove the Social Security income cap. Right now, the cap is at $106,800. This means that employees would pay their share of the Social Security tax for all of their income, not just what they earn under the cap of $106,800. Right now, employees pay 6.2% to Social Security on compensation up to $106,800 (its actually less because of the payroll tax holiday), which means a maximum payment of $6,621.60. If this bill were to become law, there would be no limit.
Ive always found it strange that there was a Social Security income cap in the first place but thats how the system was designed.
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Bill consolidation is an effective method used to improve the financial status of a borrower. It is the process of combining all debts in personal loans, medical bills, and other unsecured loans in one affordable payment. It reduces interest payments and eliminates penalties and late fees. Today, there are many bill consolidation companies which can assist you in the process of debt elimination.
Financial institutions, government agencies, federal and state, business credit counseling are among the various sources where you can get an advice on what kind of bill consolidation is more suitable for your financial situation. All these institutions and organizations offer bill consolidation services to establish a financial feasible system; they provide recommendations on how to use credit lines and avoid the same problems in future. Read more…
Question by Alli: How long does a collection stay on a persons credit report?
My fiance and I got in a little disagreement a little while ago about how long collections stay on a credit report.
He says that after 7 years they will be removed from a persons credit report – whether they are paid or not.
I disagree with that. Why would collection agencies just “give up” trying to collect money from a person and take it off a persons credit report. It doesn’t make sense to me. If collection agencies just stopped trying to collect from a person after 7 years wouldn’t a lot of people not pay their bills because it will just go away after 7 years?
Can someone clarify this for me? Thanks!
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It appears that the CARD Act is making a difference—at least, on college campuses where the law prohibits credit card and bank marketers from soliciting to students. The Federal Reserve recently reported a 17% drop in the number of credit cards issued by banks via college campuses and alumni associations.
That’s definitely progress. But there’s another huge gathering place for millions of college students, where the CARD Act has no jurisdiction, and where some banks and card companies are setting up virtual booths to attract young adults: Facebook. It ma
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We’ve done a bunch of stories about the Consumer Financial Protection Bureau, which officially opened its doors to the public last Thursday. But there are many more aspects of the Dodd-Frank Wall Street reform act that also took effect last week, just one year after President Obama signed the bill into law. For a good, in-depth summary, check out this memo by Sullivan & Cromwell LLP, a Manhattan-based corporate law firm. In the meantime, here’s a quick run-down of some of Dodd-Frank’s key provisions:
1. Denied Credit? You Get to See Your Real Score.
One part of the law many consumers may notice is the new rule requiring lenders to tell you your credit score if they use it to deny you credit. That’
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