Tag: subprime borrowers

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How Much Interest Am I Paying Every Month? Read The Bizarre Truth Here!

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How Much Interest Am I Paying Every Month?: Introduction

From my experience, how much interest am I paying every month is a question that nobody asks themselves. We’ve become a society based on credit. We have multiple credit cards, lines of credit, mortgages, car loans, student loans…

If I asked you how much interest you were paying each month I’d be willing to bet that not a single person could give me a correct answer. A monthly statement arrives either in the mail or electronically or an automatic payment comes out of your bank account or billed to your credit card. If you’re like most people the two things you see on a statement are the amount owing and the due date.

How Much Interest Am I Paying Every Month?: Start With Credit Cards

I think you’d be totally shocked at the amount of interest you’re paying each month, especially on high interest debt like credit cards. According to Capital Direct if you carry a balance of $8,000 on your credit card:

  • Your statement will show a minimum payment of $240. That may not seem like a big deal but did you know that if you pay the monthly minimum each month at an interest rate of 18.9%, it will take you 4 years to pay off the debt?
  • During this period you will pay $3,461 in interest charges.
  • The $8,000 debt will end up costing you $11,461.

How Much Interest Am I Paying Every Month?: How You Can Find Out

If you look at your credit card statement there will be a section that looks like this:

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This is the area of your credit card statement that everyone ignores. By focusing on this area, it will allow you to calculate the amount and answer the question “how much interest do I pay every month”

How Much Interest Am I Paying Every Month?: The Bizarre Truth

According to TransUnion:

  • Credit card delinquency rates jumped 14% year-over-year from 1.81% in the first quarter of 2015 to 2.06% in the first quarter of 2016.
  • Subprime borrowing is up. Subprime borrowers pay a higher interest rate because they have a poor credit history.
  • The average monthly balance for subprime credit card borrowers rose 5.7% to $6,601 in the first quarter.

How Much Interest Am I Paying Every Month?: What to do if you have too much high interest debt

Don’t get trapped in the cycle of high interest debt. The Ira Smith Team is here to help. With immediate action and a solid financial plan you can get escape the high interest debt cycle Starting Over, Starting Now. Give us a call today. You’ll be happy you did.

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Brandon Blog Post

SUBPRIME PERSONAL LOANS SECRETS REVEALED

subprime lending, subprime loans, subprime borrowers, trustee, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, subprime personal loans, cctvnews, subprime lenders, subprime, prime lending, subprime auto loans, subprime loan, subprime mortgage lending, subprime crisis, predatory lending, big short, subprime lending, subprime loans, subprime borrowers, trustee, bankruptcy, bankruptcy alternatives, credit counselling, debt consolidation, consumer proposals, subprime personal loansWhat are subprime personal loans?

Subprime personal loans lending is dangerous business. It was instrumental in pushing the U.S. financial system to the brink of collapse from 2007 – 2008.

You may have read the book or seen the movie The Big Short. It is a 2015 American film directed and co-written by Adam McKay. It is based on the non-fiction 2010 book of the same name by Michael Lewis. It is about the financial crisis of 2007–2008, triggered by the United States housing bubble. The film stars Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.

Now, could subprime lending spell doom for Canada?

What is subprime lending?

Subprime personal loans lending refers to giving loans to individuals who don’t qualify for prime rate or regular loans. The reason they don’t qualify is usually because of poor credit ratings. There could also be other factors that set off red flags about their ability to repay the loan. As a result subprime loans carry a higher interest rate than normal loans. This is because of the increased risk that the borrowers will default on payment.

Subprime lending (also referred to as near-prime, non-prime, and second-chance lending) means making loans to people who may have difficulty maintaining the repayment schedule. Their diffculty is sometimes reflecting setbacks, such as unemployment, divorce or medical emergencies.

What is the state of subprime lending in Canada?

According to TransUnion, subprime lending is becoming a bigger part of the credit business in Canada.

  • The average amount owed on Canadian credit cards rose by 1.8% over the past year
  • But among subprime borrowers, it rose at more than triple that rate, up 5.7% in a year
  • The share of Canadian mortgage-holders with high debt levels (above 500% of disposable income) jumped from 3% in 1999 to 11% by 2012
  • Debt delinquencies are on the rise. The share of indebted consumers who failed to make a debt payment for 90 days rose by almost 3% over the past year

What to do if you think you need another loan but can no longer qualify for a normal loan

If you can’t qualify for a traditional loan, a subprime loan is not the answer to your problems. High interest rate subprime personal loans is not an answer for being unable to repay your debts. Taking control of your debt with the help of a professional trustee is the answer.

Make an appointment for a free consultation with Ira Smith Trustee & Receiver Inc.

We’ll discuss all your options. The options include bankruptcy alternatives – credit counselling, debt consolidation and consumer proposals. We will also tell you about bankruptcy if that’s the best option for you.

There is a way out of your financial problems. We can provide the right solution for you. We will do so without resorting to a subprime loan Starting Over, Starting Now.

Call a Trustee Now!