| | The Dangers of Sub-Prime Lending No Time is the Right Time for Sub-Prime By Suze
Orman My bet is that if your doctor tells you to scale back on the saturated fat to avoid a life-threatening heart
disease,
you're probably going to listen.
Well, for the next few minutes, I am your financial doctor. And I'm here to tell you not to put your financial
life
at high-risk by taking on a sub-prime loan or credit card. Sub-prime is a lovely euphemism for "lousy rates for a
lousy risk" -- which is why I am so concerned about the ballooning amount of money in
sub-prime home loans and credit
cards. Last year, lenders issued more than $330 billion in sub-prime mortgages, compared to just $125 billion in
1997.
Don't be Sunk by a Sub
Theoretically, sub-prime loans are what you settle for if you don't pass a lender's white-glove test. The
pitch goes something like this: "If your credit report and credit score are messy, no problem! There's a
sub-prime lender waiting to help you out!" What they don't scream at you in the ad is that you'll pay crazy
interest rates and a bucket load of extra-high fees. But consumers don't seem to care about those details. Everyone
seems focused on living the American dream ... of drowning in expensive debt. more...
Article also contains: - Make Yourself Ready for Prime Time
- If You Go Sub-Prime, Watch Every Dime
Suze Orman has been called “a force in the world of personal finance”
and a “one-woman financial advice powerhouse” by USA Today. She is the author
of four consecutive New York Times bestsellers, including The Road to Wealth.
Suze Orman, a
Certified Financial Planner Professional®,
directed the Suze Orman Financial Group from 1987-1997, served
as
Vice President of Investments for Prudential Bache Securities from
1983-87, and from 1980-83, was an Account Executive at Merrill Lynch.
Watch Suze every Saturday night on CNBC.
Check www.suzeorman.com
for TV listings.
|
| |
| | Debt and Credit on Yahoo! Finance | |
 |
|
Buying the Right Car Insurance at the Right Price
|
|
| By Suze Orman |
|
|
|
| Debt-Defying
Moves |
|
| · |
Getting Smart with the Money You Don't Have! |
| · |
Do You Know the Score? |
| · |
How to Master the FICO Game |
|
| Greenspan's
Call to ARMs
|
|
| · |
Why Greenspan and Lenders Like Adjustables |
| · |
Adjustable Rate Mortgages: A Smart Option if You Plan to Be on the Move |
| · |
Fixed Rate Mortgages: Perfect if You're Staying Put |
|
|
View
All Topics...
|
|
|
|
