3 Scams from Banks

[Rodimus]

1- Refinancing
2- Reverse Mortgage
3- Loan / Debt Consolidation

 

[Cellblock2429]

1- Refinancing
2- Reverse Mortgage
3- Loan / Debt Consolidation

/——-/
1. Maybe, maybe not.
2. Yup
3. Yup

 

[luiza]

Where money is involved there will always be scams and outright dishonesty which is why you are best off only ever discussing matters like these face to face and with companies / banks that are 100% checked out .Usual advice -- if it is apparently better than expected ,it is likely a scam until 100% checked out . And banks can be / are as dishonest as any other group .Albeit more criminal in the so called big money leagues . So DYOR

 

[Dekster]

1- Refinancing
2- Reverse Mortgage
3- Loan / Debt Consolidation

If you are paying credit card companies 20% but can only pay a bank 8%, how is that a scam? Consumer credit cards are the real scam.

 

[Cellblock2429]

If you are paying credit card companies 20% but can only pay a bank 8%, how is that a scam? Consumer credit cards are the real scam.

/---/ I fell for that in the 1990s. All I did was convert short term high-interest rate loans into a long-term, low-intrest loan. It took forever to pay them down.

 

[iamwhatiseem]

You left out several.
The mortgage itself is probably a scam to drain the buyers pockets.
70% of homeowners in the U.S. live in a home they can't afford. 70%.
A simple rule back in the day is one that has been ignored for 40 years...
Your total house payment, with taxes and insurance, should never exceed 25% of your household income.
Their are hordes of people whose house payment is over 50% of their income.
Banks use to give/deny mortgages on this rule. It was raised to 28% in the 1980s and now is pretty much completely ignored by loaners.

 

[Dekster]

/---/ I fell for that in the 1990s. All I did was convert short term high-interest rate loans into a long-term, low-intrest loan. It took forever to pay them down.

If you had kept making the higher payments you would have been covering more principal on the loan. It does take forever to get out of credit card debt once you get on that path. What worked for me was to make the minimum payment but then save up enough to pay them off in a lump sum them immediately cancel them so I couldn't use them again. It wasn't the best way to do it financially, but it was how I broke the cycle of using them irresponsibly. Now, I have two but I usually pay them off online or on the phone as soon as the charge posts. It helps now that debits can be used like CC's.

 

[iamwhatiseem]

If you had kept making the higher payments you would have been covering more principal on the loan. It does take forever to get out of credit card debt once you get on that path. What worked for me was to make the minimum payment but then save up enough to pay them off in a lump sum them immediately cancel them so I couldn't use them again. It wasn't the best way to do it financially, but it was how I broke the cycle of using them irresponsibly. Now, I have two but I usually pay them off online or on the phone as soon as the charge posts. It helps now that debits can be used like CC's.

You paid a lot of interest doing that.
You should never "save" to pay off a credit card. You should apply it immediately to avoid paying interest.

 

[Cellblock2429]

If you had kept making the higher payments you would have been covering more principal on the loan. It does take forever to get out of credit card debt once you get on that path. What worked for me was to make the minimum payment but then save up enough to pay them off in a lump sum them immediately cancel them so I couldn't use them again. It wasn't the best way to do it financially, but it was how I broke the cycle of using them irresponsibly. Now, I have two but I usually pay them off online or on the phone as soon as the charge posts. It helps now that debits can be used like CC's.

/----/Me too. It was harder because my wife and I had three daughters in college, and living on Long Island was extra expensive. But now I pay off my CC debt every week.