Economists please chime in. Review and provide comments.
1. We refinance all the mortgage loans -especially delinquent loans -perhaps leaving out 30 year loans or just including adjustable/5 year or 7 year loans-at today’s house values. And fix the interest rate at lowest possible rate for 10 years. This will give people confidence, decrease or fix their mortgage commitment and decrease the foreclosure. All lender is doing is taking property back and selling to mostly an investor or opportunist buyer. Lender is taking a loss anyway. Why not give consumer a break and increase his or her confidence. Nobody wants to lose a house or have bad credit.
2. Take the credit card amount for a consumer, Calculate the original borrowing and then adding a low interest rate-let us say- 8-10% and then fixing a monthly amount for 5 year. So, let us I borrow $10,000 and later borrow another $5000. Original amount would be $1,5000. Add 10% interest (as opposed to 12-18%) and let us for 2 years it comes out to $3,000. Total amount would be $18,000. This will be opposed to current situation where there is revolving recurring charges of interest rate and payment keeps fluctuating. Again, this will give consumer confidence and fix their liability.
This will put responsibility back to where it belongs- to opportunist lenders/banks as well as consumers-both meeting their responsibility but banker and lender writing off some of the debt to move things forward.
I am not an economist and I have not done the math but somehow feel this should solve some of the problems.
What do you think? Math wizards/economists please chime in.
Most importantly write to your Senator. We need everyone to be heard.
I do agree with stopping other expenses such as on war etc.
Did not know about Ron Paul though…thanks for sharing.
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- Should the government bail out Mortgage lenders and Banks who caused this mortgage crisis?
- Leave these loans only
- The distinction between the types of credit
- Anyone Heard Of The American Express Consumer Debt Management Plan?