The nation's financial regulatory system needs fixing, and bankers can be certain changes are coming. But after months of Congressional hearings, debates and some hysterics, that's still about all the industry knows for sure. Only the broadest outlines of the new regulatory regime have emerged, and Capitol Hill watchers say the window for sweeping changes to occur quickly — and some worried in anger — has probably closed. Instead, regulatory reform is shaping up to be a slow grind through Congress that may last a year or more. Some say the real deadline for passage is not until the summer of 2010, when mid-term campaigning kicks off in earnest.
On balance, this is probably a positive development. Bankers, especially community bankers, fret that a rush to enact reforms — particularly in an industry as complicated, fractured and heavily regulated as financial services — could unfairly target banks that bear little responsibility for the financial crisis. In fact, there is even cautious optimism among some community bankers that the reforms under discussion — from those that would raise the capital levels of too-big-to-fail institutions, to the push for national, uniform standards on regulating particular financial instruments such as mortgages — might actually give outgunned smaller banks a better shot in certain markets and products.
Brian Gardner, a vice president at Keefe, Bruyette & Woods, says, "We could end up with a bifurcated system, with a core banking system [made up of the too-big-to fail banks] that has more regulations and capital requirements. For smaller banks, that could be beneficial."
Historically, community banks have held more capital than big banks, and larger banks have used their funding advantages and their scale to offer better pricing on loans. Requiring larger banks to hold more capital could change the math on a range of products, bankers say, particularly business-related loans and mortgages, giving community banks a chance to compete for business they have been ceding to big institutions. "The new capital rules will change a lot of business plans," says Tom Hoy, CEO of the $1.7 billion-asset Arrow Financial Corp., a two-bank holding company in Glens Falls, N.Y. "I think community banks will be very competitive coming out of this. I'm very optimistic."
Smaller banks have been losing market share in virtually every loan category for years, as the biggest banks and nonbank financial institutions consolidated their power and reached deeper into consumer and small-business lending. From 1998 to 2008, commercial banks with $10 billion of assets or more increased their market share of 1-to-4 family home mortgages from 56.3 percent to 79.7 percent, home equity loans from 66.7 percent to 88.1 percent, and individual loans — including credit cards — from 57.6 percent to 88.6 percent, according to Federal Deposit Insurance Corp figures. Smaller banks even lost ground in their strongest loan categories. From 1998 to 2008, banks with $100 million to $10 billion of assets saw their hold on the commercial-loan market fall by 18 percent.
There are no guarantees, of course, that these trends will be markedly reversed under a new regulatory structure, but the prospect of stepped-up capital requirements for large banks is a welcome change for their smaller competitors.
Just a year ago the international community was poised to lower capital ratios for big banks through the Basel II accord; smaller banks protested bitterly that lowering capital requirements for large institutions would crimp their competitiveness even more. That prospect appears to have faded, though Bert Ely, an industry consultant in Alexandria, Va., warns against community banks taking anything for granted so soon in the regulatory reform process. "I understand the argument" that higher capital requirement for big banks could help smaller banks compete, Ely says. "But it's all incredibly fuzzy right now. It's difficult to discuss these [regulatory] proposals at this time because we just don't know the specifics."
Source
Wednesday, October 28, 2009
Thursday, October 15, 2009
Credit Card Debt: Learn How To Pay Off Your Credit Cards NOW
Nearly half of all households in the country have substantial credit card debt. Your credit card debt may not have been worrisome to you in the past, but with the financial crisis in full swing and prices for everyday items through the roof, you may have become concerned about the amount of money you have going out to pay credit card and other bills as compared to the amount of income coming in.
You are not alone in your concerns - most families are struggling to meet previous obligations while paying outrageous prices for housing, groceries, and gasoline just to survive. You can take steps to pay off your credit cards and live a life free of high interest and minimum monthly payments, starting today.
Make A Commitment To Pay Off Your Debt
The secret to paying off your credit cards lies in your commitment to do so. Most credit card companies offer you the option of just paying the minimum monthly payment. This feature comes in handy if you are strapped for cash, but paying just this small amount each month means you will take many, many years (a decade or longer) to pay the bill in full.
In most instances, the minimum monthly payment does not even cover the interest that is charged to your account each month. You can just imagine that paying off your credit card balance in this manner could be a never-ending activity. A better way to pay on your credit card is to make at least double the minimum payment or triple that amount if you can possible swing it.
Negotiate A Better Rate
You should also all your credit card company to negotiate a lower interest rate on your credit card. Most credit card companies are willing to at least discuss this option if you have been a good customer who has made diligent and on-time payments. It never hurts to ask, and you might negotiate to knock off a couple points in interest - even if you have to make repeated requests.
Transfer To Zero Interest
You might also consider transferring your credit card balances over to a new credit card that features zero percent interest on balance transfers. Be sure to read the fine print in order to get this great rate for at least the first year. During that time, you should be able to pay down most of your credit card debt by making extra payments above the minimum monthly payment.
Consolidate Your Card Balances
Another option is to consolidate your credit card debt into a credit card consolidation loan. This would be a loan that pays off the principle of all the cards that you own - and you would, in turn, repay the lender of your credit card consolidation loan in monthly installments. Taking out a consolidation loan for your credit card debt can allow you to pay off all your balances at once and negotiate a payment amount that suits your budget. Do not plan to pay longer than five years on your consolidation loan - this will save you tons on interest.
Shop Online And Save
You might shop online to receive great balance transfer options for new credit cards as well as credit card consolidation loans. Online lenders often offer lesser interest rates than traditional banks and have higher rates of approval for borrowers of all credit types, including those with less-than-perfect credit histories, derogatory credit files, or those with limited credit.
Monday, September 28, 2009
Show Constraint or You’ll Need Credit Card Consolidation
Restraint is an easy word to use but, when mentioned to a newly graduated high school student who has just took ownership of his or her first credit card it is a very hard word for them to put into practice, unfortunately credit card companies make it only too easy for young people to amass a large mountain of debt very quickly. They unscrupulously make offers that seem quite attractive or lucrative to ensnare, what will be, their cash cow of many years to come.
Restraint, as I’ve already mentioned, must be instilled in our young people as it does not take too long at all for our credit cards to be charged to limit.
If the self control that was needed was not applied then unfortunately it will not be too long before the person is looking at a repayment figure that exceeds what he or she can afford. Once this point is reached there are various options one can take but by far the most commonly used route is the decision to consolidate credit card debt and any other debt into one manageable loan repayment.
The decision to consolidate credit card debt is considered a responsible move in handling your credit. It demonstrates that you are willing and concerned about meeting your obligations and clearing your financial debts. Consolidation of debt should be looked at quite differently from filing for bankruptcy in order to have your debts discharged. It is also a more beneficial than simply ignoring your debts in the unrealistic hope that they will somehow disappear.
Credit counselors are willing to assist people and are very easy to approach. They are experts in dealing with hard to manage debt, and in finding solutions to what may seem to many like insurmountable odds. The other benefit of good credit consolidation services is that they also educate the consumer on responsible use of credit, unfortunately though these services are only called upon when a problem exists, rather than right at the start where any potential problem could have been avoided with good information.
Source
Restraint, as I’ve already mentioned, must be instilled in our young people as it does not take too long at all for our credit cards to be charged to limit.
If the self control that was needed was not applied then unfortunately it will not be too long before the person is looking at a repayment figure that exceeds what he or she can afford. Once this point is reached there are various options one can take but by far the most commonly used route is the decision to consolidate credit card debt and any other debt into one manageable loan repayment.
The decision to consolidate credit card debt is considered a responsible move in handling your credit. It demonstrates that you are willing and concerned about meeting your obligations and clearing your financial debts. Consolidation of debt should be looked at quite differently from filing for bankruptcy in order to have your debts discharged. It is also a more beneficial than simply ignoring your debts in the unrealistic hope that they will somehow disappear.
Credit counselors are willing to assist people and are very easy to approach. They are experts in dealing with hard to manage debt, and in finding solutions to what may seem to many like insurmountable odds. The other benefit of good credit consolidation services is that they also educate the consumer on responsible use of credit, unfortunately though these services are only called upon when a problem exists, rather than right at the start where any potential problem could have been avoided with good information.
Source
Tuesday, September 15, 2009
School consolidation panel weighs its recommendation
From voting on voting, to deciding how to decide, a special panel of volunteers that will help decide whether to close at least one Vallejo school, seems to be running in place as the clock winds down toward decision time.
But does the work of this appointed school consolidation committee even matter?
The Vallejo City Unified School District board approved the committee's creation to recommend a school site or sites for closure in the 2010-11 school year. Shuttering at least one school is seen as just one way to help erase a projected district budget shortfall of more than $11 million.
The all-volunteer committee to help make this emotionally charged choice is diverse: Three employee union representatives, two principals, three parents, two business people and one former Vallejo student.
In the face of continued declining district enrollment and the looming deficit, district officials have said that at least one school closure is likely inevitable. But, at least to the committee, district officials have not closed the door on other options.
Other options may be one reason panel members have struggled to make significant progress after half their meetings. The emotional gravity of making such a controversial recommendation may also be weighing on panel members who may have taught, attended or worked at schools that are seemingly most vulnerable.
And, regardless of what they recommend, it's still unclear just how much influence they will have on the
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board, and ultimately State Administrator Richard Damelio, who has veto power over any choice.
District officials also have seemingly eliminated at least 10 schools from possible closure for various reasons, based partly on verbal commitments to the schools' staffs. Other reasons include practical ones, such as where district meals are prepared.
While all five elected school board members say they are remaining open and objective about which site or sites to close, Damelio said he has his own opinion of the final decision.
But does the work of this appointed school consolidation committee even matter?
The Vallejo City Unified School District board approved the committee's creation to recommend a school site or sites for closure in the 2010-11 school year. Shuttering at least one school is seen as just one way to help erase a projected district budget shortfall of more than $11 million.
The all-volunteer committee to help make this emotionally charged choice is diverse: Three employee union representatives, two principals, three parents, two business people and one former Vallejo student.
In the face of continued declining district enrollment and the looming deficit, district officials have said that at least one school closure is likely inevitable. But, at least to the committee, district officials have not closed the door on other options.
Other options may be one reason panel members have struggled to make significant progress after half their meetings. The emotional gravity of making such a controversial recommendation may also be weighing on panel members who may have taught, attended or worked at schools that are seemingly most vulnerable.
And, regardless of what they recommend, it's still unclear just how much influence they will have on the
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board, and ultimately State Administrator Richard Damelio, who has veto power over any choice.
District officials also have seemingly eliminated at least 10 schools from possible closure for various reasons, based partly on verbal commitments to the schools' staffs. Other reasons include practical ones, such as where district meals are prepared.
While all five elected school board members say they are remaining open and objective about which site or sites to close, Damelio said he has his own opinion of the final decision.
Monday, August 31, 2009
Compare Student Loan Consolidation
To most of the fresh graduates out there, it is a painful issue to pay back the loans they have taken to support their college or university studies. If you are currently paying multiple interest rates to multiple loan agencies, you should know how that feels. Have you ever imagine that you can save thousands of dollars by consolidating your student loans? In fact, you can either go for federal student loan consolidation or private student loan consolidation.
Loan agencies
As the name implies, federal loan consolidation is offered by the federal government. It doesn’t need credit check or co-signer (guarantor) because this loan consolidation program is protected by the federal government.
Private student loan consolidation is offered by banks, loan agencies or credit unions. And depending on the loan agencies, you might need to provide a co-signer or get your credit history check.
How they work
Both programs are meant to combine the multiple loans you have into one loan and extend your loan period so that you can enjoy lower monthly payment. For federal student loan consolidation program, you can only combine your federal loans. But for private student loan consolidation, it is possible to consolidate your student loans together with your personal loans.
Besides that, when you are going for federal student loan consolidation, your interest rate will be lock at the current low interest rate for the whole loan period. For private student loan consolidation however, your interest rate might fluctuate with the market rate. You can try to talk to the loan agency to look at the possibility of getting the lowest interest rate.
Advantages
You can improve your credit score when you consolidate your student loans with both programs. This is because when you have consolidated your loans, you are being seen as servicing one single loan instead of multiple loans.
Source
Loan agencies
As the name implies, federal loan consolidation is offered by the federal government. It doesn’t need credit check or co-signer (guarantor) because this loan consolidation program is protected by the federal government.
Private student loan consolidation is offered by banks, loan agencies or credit unions. And depending on the loan agencies, you might need to provide a co-signer or get your credit history check.
How they work
Both programs are meant to combine the multiple loans you have into one loan and extend your loan period so that you can enjoy lower monthly payment. For federal student loan consolidation program, you can only combine your federal loans. But for private student loan consolidation, it is possible to consolidate your student loans together with your personal loans.
Besides that, when you are going for federal student loan consolidation, your interest rate will be lock at the current low interest rate for the whole loan period. For private student loan consolidation however, your interest rate might fluctuate with the market rate. You can try to talk to the loan agency to look at the possibility of getting the lowest interest rate.
Advantages
You can improve your credit score when you consolidate your student loans with both programs. This is because when you have consolidated your loans, you are being seen as servicing one single loan instead of multiple loans.
Source
Monday, August 17, 2009
Sorting Your Web Of Debt With Acs Student Loan Consolidation
Of all the mistakes you can make as a student, one stands high above the others; falling behind on your student loan debt and defaulting. This is something that can follow you well into your professional career. With ACS student loan consolidation, though, you can sort through the loans and give yourself the ability to relax and breathe a little easier.
If your student loans are so high that just doing the math gives you a major headache, ACS student loan consolidation can combine all your loans into only one or two loans, and use one simple account for you to make payments.
If you are in danger of defaulting on your student loans, consolidation is something well worth considering. Defaulted loans can have negative effects on your credit and finances, and these effects last for years, well after you have graduated.
If it has been long enough since you defaulted, the federal government can actually deduct 15 percent of your paycheck to repay your student loans. The United States Treasury can also take your tax refunds and apply them towards your student loan balances as well. Beyond these acts, your defaulted loans also appear on your credit report, which can prevent you from being able to buy a house or car, credit card, and in some cases can work against you when trying to get a job or rent an apartment.
ACS student loan consolidation can be applied for using the web, and through their website you will be able to manage your loans. Using their ExpressPay service, you can even pay your loans right through the site as well. The ACS student loan consolidation application process is entirely paperless,instead relying on electronic signatures to sign legal documents.
Student debtors may apply for three types of ACS consolidation programs. There is a Stafford loan program, which is for undergrad students applying for a loan for themselves. There is a Graduate Plus loan, for grad students applying for a loan on their own behalf. Lastly is the Parent Plus loan, which is for parents and legal guardians applying for a loan on behalf of a student.
Source
If your student loans are so high that just doing the math gives you a major headache, ACS student loan consolidation can combine all your loans into only one or two loans, and use one simple account for you to make payments.
If you are in danger of defaulting on your student loans, consolidation is something well worth considering. Defaulted loans can have negative effects on your credit and finances, and these effects last for years, well after you have graduated.
If it has been long enough since you defaulted, the federal government can actually deduct 15 percent of your paycheck to repay your student loans. The United States Treasury can also take your tax refunds and apply them towards your student loan balances as well. Beyond these acts, your defaulted loans also appear on your credit report, which can prevent you from being able to buy a house or car, credit card, and in some cases can work against you when trying to get a job or rent an apartment.
ACS student loan consolidation can be applied for using the web, and through their website you will be able to manage your loans. Using their ExpressPay service, you can even pay your loans right through the site as well. The ACS student loan consolidation application process is entirely paperless,instead relying on electronic signatures to sign legal documents.
Student debtors may apply for three types of ACS consolidation programs. There is a Stafford loan program, which is for undergrad students applying for a loan for themselves. There is a Graduate Plus loan, for grad students applying for a loan on their own behalf. Lastly is the Parent Plus loan, which is for parents and legal guardians applying for a loan on behalf of a student.
Source
Monday, August 3, 2009
Student Loans: Easing the Burden - loan consolidation
Get a break on your payments so you can manage your other debt, too.
It's payback time for students who graduated from college last spring owing money on federal student loans. Your six-month-long grace period is about to end, and the money you owe--an average of $16,600 for undergraduates 18 to 25, according to Nellie Mae, a major student-loan provider--is looming large. The burden is still heavier when you add on credit card debt, which Nellie Mae says averages $2,000 for the same group of students, and maybe even payments you're making on a new car. What's the best way to balance the load?
Rebecca Carter has a plan. Carter, 31, is a veteran of student loans, having repaid about $7,500 from her first stab at college a decade ago. Two years ago she returned to school to complete her degree in business administration at Eastern Nazarene College, in Quincy, Mass.; she graduated in August with $23,000 in outstanding loans.
Carter is wiser, if not richer, the second time around. Before she begins repayment next March, Carter plans to consolidate loans from three lenders (with interest averaging about 7.5%) into a new loan from a single lender, and to extend the payment term from the standard ten years to 20 years. Carter estimates that loan consolidation will reduce her monthly payments 40%, so that she'll pay between $200 and $250 a month. That will give her breathing room to make payments on her more-expensive car loan at 11%.
Once the car is paid off, she hopes to put the extra money toward the student loans and still repay them in ten years. "I understand debt a lot better this time around because I've lived it," says Carter, who is also a manager of loan origination at Nellie Mae.
A WINNING STRATEGY. Carter's plan to knock off her more-expensive loan first and then concentrate her resources on her remaining debt is a winner, says Amy Cole, an educator at the Consumer Credit Counseling Service of Southern New England. A credit card charging 18% interest is a heavier burden than a student loan: The highest rate on student loans currently outstanding is 8.25%. If student loans are your only liability, focus first on those with the highest rate. Even if your budget is tight, don't rule out investing some of your resources if you can earn a higher return than the interest rate you're paying on your loan.
The standard repayment plan for student loans calls for equal monthly payments and a ten-year payback period. If that's more than you can afford, call your lender before the grace period ends to ask about other repayment options. For example, Carter is a prime candidate for loan consolidation because she owes money to three different lenders at different rates. With the consolidated loan, the interest rate will be a weighted average of all the loans, rounded up by one-fourth of a percentage point. Variable rates for government-sponsored Stafford loans are unusually low now, so consolidating locks in an attractive rate. Once you're locked in, however, you're stuck if the Stafford rate happens to drop in the future.
Source
It's payback time for students who graduated from college last spring owing money on federal student loans. Your six-month-long grace period is about to end, and the money you owe--an average of $16,600 for undergraduates 18 to 25, according to Nellie Mae, a major student-loan provider--is looming large. The burden is still heavier when you add on credit card debt, which Nellie Mae says averages $2,000 for the same group of students, and maybe even payments you're making on a new car. What's the best way to balance the load?
Rebecca Carter has a plan. Carter, 31, is a veteran of student loans, having repaid about $7,500 from her first stab at college a decade ago. Two years ago she returned to school to complete her degree in business administration at Eastern Nazarene College, in Quincy, Mass.; she graduated in August with $23,000 in outstanding loans.
Carter is wiser, if not richer, the second time around. Before she begins repayment next March, Carter plans to consolidate loans from three lenders (with interest averaging about 7.5%) into a new loan from a single lender, and to extend the payment term from the standard ten years to 20 years. Carter estimates that loan consolidation will reduce her monthly payments 40%, so that she'll pay between $200 and $250 a month. That will give her breathing room to make payments on her more-expensive car loan at 11%.
Once the car is paid off, she hopes to put the extra money toward the student loans and still repay them in ten years. "I understand debt a lot better this time around because I've lived it," says Carter, who is also a manager of loan origination at Nellie Mae.
A WINNING STRATEGY. Carter's plan to knock off her more-expensive loan first and then concentrate her resources on her remaining debt is a winner, says Amy Cole, an educator at the Consumer Credit Counseling Service of Southern New England. A credit card charging 18% interest is a heavier burden than a student loan: The highest rate on student loans currently outstanding is 8.25%. If student loans are your only liability, focus first on those with the highest rate. Even if your budget is tight, don't rule out investing some of your resources if you can earn a higher return than the interest rate you're paying on your loan.
The standard repayment plan for student loans calls for equal monthly payments and a ten-year payback period. If that's more than you can afford, call your lender before the grace period ends to ask about other repayment options. For example, Carter is a prime candidate for loan consolidation because she owes money to three different lenders at different rates. With the consolidated loan, the interest rate will be a weighted average of all the loans, rounded up by one-fourth of a percentage point. Variable rates for government-sponsored Stafford loans are unusually low now, so consolidating locks in an attractive rate. Once you're locked in, however, you're stuck if the Stafford rate happens to drop in the future.
Source
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