Student loan debt is expected to rise even faster as tuition increases and federal financial aid options dwindle. Image: Flickr/grifray's photostream CC-BY-SA

More students are going to college, and most of them are going into debt. Student loan debt outpaced credit card debt in 2010 and is expected to pass $1 trillion in 2011. Student loans, long considered a “good debt,” may morph into a bad debt for graduates faced with decades of payments.

Student loan debt rises with tuition

In 1993, less than half of students earning a bachelor’s degree graduated with student loan debt. By 2008, the number of students graduating in debt had risen to two-thirds. In 2009, college graduates left school with an average of $24,000 in student loan debt. Total student loan debt is expected to reach $1 trillion this year and grow at at even faster rate. Republicans in Congress want to cut Pell grants, a form of federal financial aid for lower-income students. As cash-strapped states cut funding to universities and colleges, tuition increases will add to a mountain of debt that is expected to have a profound impact on the current generation of college students. As student loan debt grows, so does the rate of student loan default. Credit damage, as well as burdensome student loan payments for those who don’t default, will limit the range of options when it comes to buying a home or having children. Those who have children may have to choose between paying off their student loan debt or saving for their children’s college education.

Good debt versus bad debt

When it comes to debt, student loans have always been considered “good debt,” as opposed to “bad debt” such as credit cards, auto loans or payday loans. In the aftermath of the recession, any kind of debt has become undesirable. But even as the average cost for a four-year private education has reached more than $37,000 a year, according to the College Board, student loans can be good debt if the degree results in a salary that allows the debt to be paid in a reasonable amount of time. A simple rule of thumb among financial advisers is not to borrow more than you expect to make in the first year on the job after graduation. That rule of thumb, however, highlights the risk of taking on student loan debt. Finding a job that pays off the average cost of college with a degree in sociology or history is unlikely. The risk may be lower for fields such as engineering or medicine, but the costs, and the debt, will likely be higher.

Bottom line: debt is risky

When it comes to good debt versus bad debt, the bottom line these days is simple: all debt is bad if you can’t pay it off. Default rates are rising — to almost 50 percent — among students who attended for-profit colleges. Student loans usually can’t be discharged in bankruptcy. For federally guaranteed student loans, the government can garnish wages, withhold tax refunds or dock Social Security payments. The Obama administration did make it easier for student loan debtors stuck in low-paying jobs by forgiving the balance on debt for those who have dutifully paid 15 percent of their income toward their student loans for 25 years — or 10 years if they work in public service.

Sources

New York Times

Creditcards.com

care 2

A new car loan could be cheaper than buying used thanks to 0 percent financing and a low inventory of used vehicles for sale. Image: CC madro21/Flickr

In an economy turned upside-down, a new car loan has become more affordable that buying used. Car buyer incentives from some automakers are so generous that conventional wisdom about car buying can be tossed out the window. Certain makes and models cost less per month new than the same vehicle driven for a year by a previous owner.

Free financing sends auto lending askew

Unless you’re paying quick cash, getting a loan for a new car could be smarter in many cases than buying used. Because interest rates remain extremely low in the aftermath of the recession, loan rates for new vehicles have imploded. According to Edmunds.com, the average rate for an auto loan was a mere 4.16 percent in December. Strangely enough, more than 15 percent of auto loans are virtually devoid of interest. General Motors, which is showing signs of life after a notorious government bailout, offers 0 percent financing on 50 percent of its auto loans. However, 0 percent financing isn’t for everyone. Strong credit is needed to qualify for such a sweet deal, to the tune of a FICO score of at least 650 and sometimes above 700.

How new cars can be cheaper than used cars

While average interest rates for new car loans are about 4 percent, rates for used cars are still about 8 percent. Plus, the price difference between used and new cars has also narrowed for a number of reasons. The “cash for clunkers” program in 2009 cleared the market of about 700,000 used cars. The financial crisis and credit crunch that hit new car sales so hard affected the amount of used cars being traded in. And some deals on new cars are so generous that a new vehicle is cheaper over the life of a five-year car loan that a one-year-old edition of an identical model.

Which new cars are cheaper than used cars?

To make a list of new cars that are cheaper than used cars, Edmunds.com compared the average used car interest rate of 7.7 percent with a 0 percent new car loan available for certain models. Auto loans were for five year terms, and other incentives were figured in. Some of the vehicles on the list include the Audi S4 Premium Plus Quattro Sedan, with a savings of $1,020; the Honda CR-V EX with a savings of $1,320; and the Toyota FJ Cruiser base model, also with a savings of $1,320.

Sources

MarketWatch

MoneyWatch

Edmunds.com

Credit cards were not among the forms of consumer credit that increased in November. (Photo Credit: CC BY-SA/Colin/Flickr)

Bloomberg reports that consumer credit rose for the second straight month in November, a sign that consumer confidence may be on the rise. The $1.3 billion November increase in consumer lending, paced by government-held student loans, followed a $7 billion increase in October.

Consumer credit increased in auto, education fields

Non-revolving loans such as auto loans and student loans were up by $5.6 billion, according to November figures. Revolving consumer credit continued its 27-month nosedive by falling $4.2 billion, which indicates that maintaining high interest debt over time is becoming less attractive to U.S. consumers. It also means that even though consumer confidence may be increasing, times when emergency cash is needed still lend themselves to products like payday loans rather than credit cards.

Positive economic signs, with more to come

Theresa Chen, a Barclays Capital Inc. economist in New York, reportedly told her clients that the road ahead will be long.

“Consumer credit is still rebounding off the bottom. This is broadly in line with the rise in household spending that we have already seen over the past few quarters,” she said.

Even though a full recovery is far away, November’s $1.3 billion consumer credit increase still outpaced the $500 million recovery many economists forecast for the month. This pleasant surprise, along with a larger than expected U.S. jobs increase and unemployment rate decrease to 9.4 percent, helped bolster the Standard & Poor’s 500 Index. The S & P 500 ended 2010 with a 13 percent gain.

November auto sales another positive sign

The November consumer credit increase translated into another good month of sales for the automotive industry. According to Bloomberg, auto sales hit a seasonally adjusted 12.26 million annual rate in November, followed by a further increase to 12.53 pace in December. Combined, the 37.04 million rate for the final quarter of 2010 was the strongest the auto industry has seen since 2008′s third quarter.

Sources

Bloomberg

Learn to economize like the Economides, "America's Cheapest Family." (Photo Credit: CC BY-SA/Tiffany Muehli/Self-Reliant Yuppies)

The Economides family of Scottsdale, Ariz., understands what it takes to make it during a recession. While most people struggle to make ends meet and scratch for emergency money, “America’s Cheapest Family” (the Economides’ trademarked title) lives well by the simple principles of making a budget and frugal living. According to MSNBC.com, the Economides are the model of what a modern American recession family should be.

‘America’s Cheapest Family’ avoids credit whenever possible

Credit cards, auto loans and squeezing as much equity as possible out of a home are not on the agenda for America’s Cheapest Family. Despite having an expensive home in the golf resort community of Scottsdale, the Economides are able to live on $44,000 per year. And theirs is a family of seven that eats healthy food and wears designer clothing. Their life may seem impossible, but the Economides tell anyone who will listen that bargain hunting and avoiding impulse buying are their key economic strategies. Their current book, “Cut Your Grocery Bill in Half – With America’s Cheapest Family,” is promoted as a game-changer for people who want to embrace frugal living without sacrificing quality.

Having a plan

Planning spending is vital for any family, and that includes planning meals. The Economides economize by planning meals well ahead of time. Forethought saves them from having to make the kind of spontaneous food choices that cost many people more than they should be spending. And the proof is in the numbers for America’s Cheapest Family. Where other families of similar size might spend as much as $2,000 per week on groceries, the Economides spend $350. It can be done. Reasonable portion sizes play a significant part.

Fashionable, but not trendy

The Economides don’t wear ratty, hand-me-down clothing; they wear fashionable brand names. However, as they recently told Matt Lauer on “Today,” they avoid the hook of pricey new trends. Designer jeans may go for $200 in a mall boutique, but if a quality pair of jeans – even one with a designer name – can be had for $10 in a thrift store, it makes sense to buy for less. Saving money carries the day. That’s the philosophy that put the “economy” in Economides.

Sources:

MSNBC.com

Shop like an Economides

Getting a bad credit loan to buy a car is several times harder than it was two years ago. Image from Flickr.

Recent statistics from the car-lending industry are showing that it is easier to get car loans with bad credit. While lending is still slow for borrowers at every credit tier, it is improving. Lenders are also exploring alternative lending options that are helping expand available credit.

Drop in lending installment loans

During 2008, the amount of lending of installment loans to customers with bad credit dropped off a cliff. Usually, the approval rate for instant loans for autos hovered between 60 and 90 percent, depending on credit rating. In 2009, personal loans given to borrowers with bad credit for auto purchases dropped to 5 percent. The skittish market combined with lack of available credit meant that very few lenders were willing to provide loans to bad-credit borrowers. Even borrowers with good credit only had a 70 percent chance of getting an auto loan.

Effect of auto lending

Many financial industry watchers are keeping a very close eye on auto lending — and for good reason. The auto industry accounts for about 4 percent of the U.S. economy. More than a quarter-million auto industry jobs have been lost in just the last three years. In short, with fewer cars sold, more jobs are lost. The auto industry is also seen as a bellwether for the U.S. economy.

Improving lending options

For borrowers who are looking to buy a new vehicle, there are growing options for quick loans. Many dealerships and lenders are looking to higher down payments and higher value trade-ins. Incentives such as zero interest are also propping up auto sales. Regional and local banks, as well as specialty financiers are all increasing the number of loans offered to all levels of borrowers. Subprime borrowers, though, are still facing a tough lending market. Just two to three years ago, there was a 60 percent chance of a “subprime” borrower getting an auto loan. Today, the rates are sitting around 9 percent — and very slowly increasing.

A FICO report shows a record number of people in the lowest credit score categories, and tighter lending standards make short-term credit alternatives a lifeline for millions of consumers. Flickr photo.

Credit scores are falling to new lows for millions of Americans. Lower credit scores and tighter lending standards have economic recovery caught between a rock and a hard place. Figures provided by FICO Inc. show that 25.5 percent of consumers — about 43 million people — now have a credit score of 599 or below. These consumers probably won’t be able to get the affordable mortgages, auto loans and credit cards that economic recovery is depending on.

Millions fall into lowest credit score categories

Along with a high unemployment rate and depressed home prices, plunging credit scores seem to be canceling out what should be positive things like record low mortgage rates and no-interest auto loans. The Associated Press reports that FICO’s findings show an additional 2.4 million people fell into the lowest credit score categories during the Great Recession. Historically, just 15 percent of 170 million consumers with active credit accounts, or 25.5 million people, fell below 599. Borrowing for these consumers is often limited to short term credit alternatives such as installment loans, personal loans and payday cash advances.

A lifeline for people with low credit scores

Already at record lows, the number of consumers with credit scores below 599 is expected to increase. The Associated Press article indicates that it can take several months before missed payments drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed. Millions more face mortgage foreclosure, which can delete 150 points from a credit score. Once the damage is done, it could be years before this group can restore their credit scores, even with a strong short-term credit history. Fortunately, with access to short term credit alternatives, they won’t be completely left out in the cold.

Lending standards lowering credit scores

Leave it to banks to do their part to lower credit scores. Creditcards.com reports that by cutting credit lines and increasing interest rates, banks are lowering their customers’ credit scores. This happens because FICO scores compare debt levels to credit limits. Lower credit lines make it look like a borrower is closer to being maxed out when they haven’t increased their debt at all. Plus, higher interest rates make it tougher to pay off existing debts. And for a personal loan to help pay the bills, they can forget about talking to their bank.

Can the  economy recover without easy credit?

Consumer spending based on credit fueled an unsustainable U.S. economic boom that was destined to bust. Considering the latest FICO report on record low credit scores, it’s no wonder a U.S. economic recovery is stuck in neutral, according to the Dallas News. consumers who can’t borrow money can’t buy houses and cars, invest in home improvements, or make other major purchases that drive economic growth and give businesses reasons to hire workers and ramp up production. For credit scores to improve, the economy has to recover and Americans have to change their spending habits. For an economy driven by consumer spending, that will be an amazing feat indeed.

Auto loan modification scams are multiplying online as con artists regulated out of the mortgage loan modification market prey on unprotected car loan consumers. Flickr photo.

Ads for auto loan modification scams are all over the Internet. Auto loan modification companies promise to negotiate with lenders to get customers lower car payments — for a hefty upfront fee. But consumer advocates and government regulators say most auto loan modifiers promising lower car payments will take your money and provide little or nothing in return. Consumer complaints about auto loan modification companies are increasing nationwide. In June, Florida’s attorney general shut down Auto Relief Group, a south Florida company that has an F rating with Better Business Bureau.

Auto loan modification: a cautionary tale

Pitches by auto loan modification companies offering vehicle loan modification services claim they have lender connections and expertise to negotiate dramatically lower interest rates or extended payments. WKYC in Cleveland reports that an unemployed student was looking for help with her $420.00 per month car payment when a television ad led her to Auto Relief Group. The auto loan modifier promised to lower her 13 percent interest rate to 8 percent and extend the loan, which would result in a lower monthly car payment of $290.00. They also claimed they often worked with Honda Financial Services, her lender.

Lower car payments never happened

The unemployed student provided her bank account information to Auto Relief Group and agreed to let it take a one-time advance fee of $298 from her checking account. WKYC reports that when she didn’t notice any reduction in her monthly car payment after a couple months, she contacted Honda directly and learned that Auto Relief Group had never contacted her auto lender. When she confronted Auto Relief Group, she was told that the $298 fee was for an “options report” the company provided and that if she wanted them to contact her lender, it would cost an extra $100.

Scammers charge for what you can do yourself

Other consumer complaints about Auto Relief Group indicate the information in the options report is nothing more than what anyone can get from free by calling their auto lender, such as the amount of the loan, the current value of the vehicle, current interest rate, balance, etc. The student in Cleveland also discovered that Auto Relief Group had made two additional $298 withdrawals from her account without her authorization.

Mortgage loan scammers migrate to auto loans

Some financial experts have said that auto loan modification scams are attracting some of the same scammers who modified mortgage loans until regulations shut them down. SunSentinel.com reports that claims on auto-loan modifier websites and ads — “We can help you keep your car, truck, boat or RV!” “Stop repossession and make your payments affordable!” — are almost identical to the promises mortgage loan modification scams once made to property owners facing foreclosure. Many of those promises weren’t kept and homeowners lost their homes and millions in upfront modification fees.

Auto loan modification companies unregulated

New laws that went into effect this year drove away most mortgage loan modification scams. The new laws require mortgage modifiers to get mortgage broker licenses and they can no longer charge upfront payments. But auto loan modifiers don’t need to be licensed, certified or even trained. The Federal Trade Commission is considering a new rule that would prohibit upfront fees for debt settlement services. However, the proposed FTC action would not include auto loan modifications.

So you’re on your own. Consider yourself warned.

Tesla Motors cars aren't powered by a Tesla coil, but the late physicist would probably love them anyway. Image from Wikimedia Commons.

It was announced last week that Toyota would be purchasing a large stake in Tesla Motors, the electric car manufacturing firm. Tesla specializes in high-end, all-electric roadsters, including an electric sports car capable of doing more than 100 miles per hour.  Its flagship model, the Tesla Roadster, is capable of going from 0 to 60 in less than four seconds, which is a considerable feat for any car.  The company had experienced lagging revenues, and the deal was announced ahead of an Initial Public Offering to boost revenue.

The Toyota Tesla deal

Toyota is already one of the leaders in the field of hybrid cars, as the Toyota Prius retains the top spot for hybrid sales. Boutique electric car company Tesla Motors announced an IPO was forthcoming as it needed to raise capital, and Toyota has thus far pledged $50 million. According to the New York Times, Tesla Motors had suffered losses of more than $56 million in 2009, and it filed for an Initial Public Offering of stock to boost capital.  The Tesla Roadster starts at about $109,000, so auto loans for the car are considerable.

The flagship Tesla Roadster

The claim to fame for Tesla Motors is the Tesla Roadster, the fastest production electric or hybrid car.  The basic model is capable of going from 0 to 60 miles per hour in 3.9 seconds. The slightly faster Tesla Roadster Sport is capable of the 0 to 60 miles per hour feat in 3.7 seconds, but costs about $20,000 more.  Granted, that is not exactly a time for the record books, but it is as far as hybrid and electric cars are concerned.  (For the record, the fastest domestic stock production car from a major manufacturer is the Chevrolet Corvette ZR1.)

This is good

This is an excellent move for Toyota, and for Tesla.  Tesla is a green manufacturer, already producing an eco-friendly sports car, and soon the company will start manufacturing the Tesla Model S, a family sedan that will retail for less than $60,000.  Part of the Toyota venture is allowing the Model S will be manufactured at the NUMMI manufacturing facility, which was recently closed.  It appears a Tesla of any sort creates sparks wherever it goes.

Benefits of no credit check loans:

• Generally no credit checks.
• Money in your personal account, sometimes within two hours of completing your loan application.
• The loan can be paid back in installments to the lending agency.
• Your personal information is protected with online security features.
• Only need to be employed for the past three months.
• A simple three- to five-minute form to complete.
• An online textual guide to assist you through the loan application process, plus a 1-800 number to help you with any questions (if you would like to speak to a real person).

What must I have to apply for no credit check loans?

• Your social security number
• Your current address information
• Must be a legal U.S. citizen
• Must be employed for at least the past three months
• 18 years of age or older

How much will I receive?

You can get up to $1,500 if you qualify for that amount. Companies decide based on how much you need and the information you provide to them in your application. Make sure all the information you provide is accurate.

How long does the loan process take?

You should be informed of your status just minutes after submitting your form. The loan agency will contact you via e-mail to let you know whether they have accepted your application.

Where to get no credit check loans?

You’re in luck. The website you are on right now connects people with loan companies online that offer different types of loan products, from no credit check loans to auto loans. Just complete the short form below and the folks here at Personal Money Market will match your loan application with a suitable loan agent that fits you best.

No Credit Check Loans | Start your application HERE!

The cash loan amount you need

The amount you get from your cash loan will depend, of course, on the price of the car minus any cash you have on hand. If you want a car that costs about $8,000, and you only have $3,000 cash on hand, you will need to take out a new car loan of $5,000. Larger cash loans like these come in forms of auto loans and installment loans, because you just cannot pay the entire loan amount back at once. (If you could, you wouldn’t need a cash loan, would you?)

However, if the car you are looking at costs about $3,000 and you have only half of that amount, we can help you get a cash loan of up to $1,500. Again, this may need to be paid back through installments. Just remember to take out only as much as you need and not any more.

The Application Process

When you are done reading this article, be sure to click on the green “Apply Now” button below. It will take you to the secure application form where you will then type in your information. Once this is complete, your information will be sent to a lender who specializes in larger cash loans like what you are seeking. They will review your information and give you an answer within minutes. Upon approval, you should have your money within a few hours – just in time to get rid of your old heap and get something reliable!

Pay it Back, Not Forward!

Cash loans should always be paid back on time. Rolling a larger cash loan forward can spell disaster for you if you fail to keep up with your payments. Installment cash loans are still subject to the higher interest rates, so keep this in mind when you plan out your budget.

Start your quick cash loan application HERE!

Some are questioning the legitimacy of Obama's social security number. Image from Wikimedia Commons.

This morning, the question of President Obama’s citizenship has again been raised, this time by the Obama social security number question. A private investigator is claiming that he has found that President Obama’s social security number is from Connecticut — and/or that Obama has multiple social security numbers. Because social security numbers are required for everything from auto loans to selective service registrations, many are wondering if the Obama SSN flap truly brings his citizenship into question.

Obama’s Social Security number: the claim

The question of Obama’s Social Security number started with private investigator Orly Taitz. Hired by an attorney who has filed lawsuits questioning Obama’s legitimacy as a citizen, Orly Taitz did a search to find Obama’s social security number. Using alternate spellings of Barack Obama such as “Barac” and “Barak” and “Barock” this investigator found 25 different Obama SSN identifiers. Using just the name “Barack Obama”, 16 social security numbers were found. The conclusion the investigator came to and has reported, is that the Obama social security number used most often begins with 042, which was a number issued in Connecticut in 1976 or 1977.

Obama Social Security number — proof of conspiracy?

Many people are calling this Obama social security number a revelation or proof of conspiracy. The basic idea is that President Obama, who was living in Hawaii at the time, could not have been issued a social security number in Connecticut so long after his birth. Others are claiming that President Obama has stolen or misused the Connecticut social security number. In general, this Obama social security number question is being pointed at by many so-called “birthers” or those who question Obama’s citizenship.

Obama Social Security number — facts to keep in mind

The Obama Social Security “revelation,” though, leaves many open questions. First of all, the private investigator searched for several different spellings of “Barack Obama” and did not differentiate between individuals with the same name. While Barack Obama is not a common name, there are likely at least two dozen individuals with U.S. social security numbers with that name. Second, a social security number has not always been issued at birth – in fact, it was not until about 1990 that a social security number was automatically issued at birth. Until 1986, most people did not have a social security number until they were at least 14 years old. Third, the social security administration issues a Social Security number based on the zip code on the application, not on the resident’s place of birth.

President Obama Social Security number — the conclusion

The social security number of President Obama will likely be under question for quite a while. However, it is important to keep in mind that multiple social security numbers for one name do not prove anything – that is why the number is unique. The fact that President Obama’s Social Security number was not issued until the late ’70s was not unusual at the time. Before jumping to conclusions about the Obama Connecticut social security number, it is important to consider the historical and social context of the time, not how the system currently works.

Sources:

How Stuff Works
Western Journalism
Wikipedia

Consumer Reports cars leading in reliability include the Honda, which tied Subaru at the top of the list.

Consumer Reports cars that made the magazines “Best 10″ list don’t include the government bailout automakers General Motors and Chrysler. The best cars for auto financing are being built by Honda and Subaru, according to Consumer Reports latest automaker rankings. The automaker showing the most dramatic improvement is South Korean carmaker Hyundai,jumping to fourth place from ninth last year. Among American manufacturers, only Ford improved over last year. It scored one point better to pass Mitsubishi for 11th place.

Government bailout bottom dwellers

Consumer Reports cars were rated for performance, comfort, utility, fuel economy and reliability. The magazine tested more than 280 vehicles. It’s unlikely many will be taking out auto loans on vehicles by government bailout automaker Chrysler, which finished dead last. Fellow government bailout recipient General Motors was second from the bottom after axing a third of its models. Asian automakers still lead the pack. Despite bad publicity resulting from braking and unintended acceleration problems, Toyota finished third behind Honda and Subaru, which tied for first.

Subaru/Honda lead automaker rankings

Consumer Reports cars that stood out included Subaru’s redesigned Legacy sedan and Outback wagon–vehicles that raised Subaru into a tie with Honda in the magazine’s automaker rankings. Subaru moved into a tie for first. The redesigned 2010 Legacy sedan and Outback wagon raised Subaru’s overall test score from 78 points to 81. That helped contribute to its tie with Honda in our rankings. Hyundai models that pushed the Korean automaker up in the rankings include the Genesis sedan, Elantra, Santa Fe SUV, and Kia Optima.

American automaker rankings

American products singled out on the Consumer Reports cars list include the redesigned Ford Fusion and Mercury Milan, referred to as “excellent overall packages that provide good performance and fuel economy.” Consumer Reports said that the reliability of Ford cars is average or above average. But Ford cars you may want to stay away from include the Taurus, F-250 pickup and Explorer SUV.s New GM models like the Buick LaCrosse and Chevrolet Equinox tested well, but with no track record as of yet, reliability for these cars wasn’t rated. Chrysler managed to squeak in a Consumer Reports recommendation for the Dodge Ram pickup.

European automaker rankings

Consumer Reports cars on the list from Europe include the Mercedes-Benz GLK small SUV. Volkswagen’s Golf was rated as excellent. The Passat and Audi A3 have improved to be merely average. And Volkswagen’s Touareg finished dead last in reliability. For people committing to car loans, reliability should be a primary consideration and Consumer Reports cars are have been a long-respected reliable source for the facts.

Will Scrabble soon be sporting new rules? Image from Flickr.

If you are a Scrabble fan, please sit down. Breathe, relax, and imagine a game board that includes a gentle mix of vowels and consonants. Relaxed? Good. Mattel has announced that the rules of Scrabble are changing — kind of. The BBC reported that the rules of Scrabble will now allow proper nouns like names and payday lender companies. However, these new rules will not apply to traditional Scrabble. The new rules of Scrabble will instead apply to a new game called Scrabble Trickster.

New Scrabble Rules – not in the U.S.

The American Scrabble Association (yes, there is one) was rightfully quite concerned when the new Scrabble Rules announcement came out. However, after a flurry of phone calls, director of the Association John Williams has confirmed that the new Scrabble Rules will not apply to the traditional game. In fact, Scrabble Trickster is not currently slated for release in the U.S. – only for England.

Mattel vs. Hasbro Scrabble Rules

In the U.S. and Canada, the rights to Scrabble are owned by Hasbro. The rules to the game have not changed in the more than 50 years since the game was first released. In England, the rights to Scrabble are owned by Mattel, which  makes everything from toy cars that practically require auto loans to board games. Mattel originally reported that it was changing the rules of Scrabble without specifying that it would be for a new version of the classic game.

Playing Scrabble with your own rules

Of course, one of the attractions of playing with a classic Scrabble board include that you do not have to follow manufacturer’s instructions. “House rules” of Scrabble include many different variations. “Wraparound” Scrabble allows words to wrap top to bottom or left to right at the edge of the board. Double-letter Scrabble combines the letters of two games into one board. Short or Long Word Scrabble specifies a minimum or maximum length of word that can be used. And yes, some players do already allow proper nouns when playing Scrabble – but all players in the game must agree.

(Image via Wikimedia.org)

In the past 20 years, Porsche has not released many concept cars. The Porsche Boxster and Carrera GT are the only models that have been displayed, states blogger Brandon Hill of the last two decades. The German car manufacturers have proved today that when they put their minds to it, they can lead the way in green designs. You won’t be able to buy this hot car with just a no credit check payday loan, however. You will need a real bad credit auto loan if you want to drive away in style.

Porsche leading the pack

Today Porsche revealed a gorgeous new model concept called the 918 Spyder. This car is definitely a beauty; it’s sleek and stylish — not to mention very high tech, with its improved power-train. Brandon Hill compares it to the Ferrari F430, Porsche Carrera GT, Porsche Boxster, and Porsche 911 GTI:

Disk wheel design is a flash from the past

The disk wheel design is only one of the great features on this concept car. It also features seating for two, all-wheel drive and dual side-exiting exhaust pipes on both sides of the car. I would definitely be a 918 Porsche if I was a car. This concept kills the potential competition!

Will it ever make it to production?

The fact that this is made by Porsche tells me that this car is quality for sure. It seems German-made cars are among some of the best luxury vehicles on the road today. This 918 Porsche is made for performance with its V8 500hp engine and a front and rear electric motor that adds about 218 more horses.

This concept can reach 60 mph in 3.2 seconds flat, and it is capable of traveling 16 miles on battery power alone, according to Hill. All these improvements equal about 78 mpg, according to Porsche and Hill. Hill says “No one knows if all of this performance goodness will ever make its way into a production vehicle, but one can hope that at least the styling cues and maybe a toned-down version of the hybrid system could make it into a production vehicle.”

I’d love to see this vehicle and others like it make it to production.

It would be nice to see versions of this technology translated into a more affordable car. This way all Americans can benefit themselves and the environment more practically. Of course, there’s no telling how long it will actually take to get the gas guzzlers off the road for good, but hopefully it won’t be too long. The earth has been holding its breath for far too long and it could certainly benefit many aspects of life on this planet, too.

Many Toyota drivers are concerned for their safety. Image from Flickr.

Just days after Akio Toyoda apologized to Congress for the multiple recalls of over 10 million Toyota vehicles, a runaway Prius in San Diego is making headlines. While some buyers are looking into auto financing to get the now-reduced cost vehicles, Toyota has recalled several models of its popular Prius hybrid. Toyota has also recalled Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Tacoma, Tundra, Sequoia, and VENZA vehicles. These recalls threaten not only driver’s safety, but is costing the company millions of dollars.

The runaway Prius in San Diego

As reported by the Los Angeles Times article, Toyta Prius owner James Sikes was accelerating to pass another vehicle when “I pushed the gas pedal to pass a car and it did something kind of funny . . . it jumped and it just stuck there.” Mr. Sikes tried to get control of his runaway Prius in several ways, including stomping the brakes, attempting to manually move the accelerator pedal, and putting the vehicle in neutral.

Runaway Prius tailed by California Highway Patrol

Eventually, he called the California Highway Patrol, who sent officers that talked him through cutting power to the vehicle and getting it off the road. The runaway Prius is now going to be examined by a Toyota “field technical specialist” as well as National Highway Safety officials. Mr. Sike’s runaway Prius had been recently taken to the dealer, where he was informed that his Prius was not subject to the Toyota recall.

Runaway vehicles blamed for 56 fatal accidents

The U.S. government has recently launched an investigation into the “timeliness” of Toyota recalls. There have been up to 56 fatal accidents blamed on the alleged acceleration problems with Toyota vehicles. Toyota claims the “sticky” acceleration pedals are due to pedal and floor mat design issues. Toyota claims that the recall fixes these problems, and they are ready for auto loans once again. There are some, though, that blame the problem on Toyota’s electronic acceleration system.

What to do if you are in a runaway vehicle

If you find yourself in a runaway Prius (or any other runaway vehicle) there are a few things that you definitely should and should not do. Thanks to the Washington Post for these pointers.
You should NOT:

• Use your hands to try and adjust the accelerator pedal. This could cause you to lose control of your vehicle.
• Immediately cut power to the vehicle. This seems a logical thing to try, but turning off the vehicle cuts power to the steering and braking system as well, and can lead to accidents.

You SHOULD:

• Put the vehicle in neutral. This will disengage the wheels from the engine, and slow down the car.
• Turn on your emergency flashers. This will let other drivers know there is something wrong.
• Steer carefully to avoid other vehicles.

The state of lending today

Prior to the recession any score of 700 or higher would have no problem finding a lender. Now, rate adjustments begin at 740, with every 20-point drop adding another adjustment. The result of the shift in credit scores is that people with decent scores need to pay more for loans or make quick changes in their credit habits to increase their scores. Some drops in credit scores may even be hidden to consumers. For example, Todd Huettner, president of Huettner Capital, said, “One of my clients always had a credit score of 740. When she went to refinance, she found out her score was at 719. The reason was she put a new washer and dryer on a store credit card. Many store cards are actually revolving credit, which means your limit is essentially your starting balance. So that purchase maxed out her card and caused a 20-point score drop.”

How things changed in the world of credit

Last year the nation’s two largest mortgage lenders, Fannie Mae and Freddie Mac, struggled in the market. Due to the lending crash, both companies changed their definition of “risk.” Any borrower with a credit score below 720 fell under this new definition and is affected by its change. Sean Cragg, VP of sales for Gold Star Mortgage Financial Group, said, “These fees have nothing to do with the mortgage company or its various products and cannot be negotiated away.” All providers of mortgage, auto and personal loans must comply with the new rules. Only financial institutions holding their own portfolios can dictate and follow their own guidelines.

Is there hope for the future?

So the question is: Is there hope for the future in lending? David Chung, managing director of CreditXPert, Inc., said, “There are many factors, including proposed legislation and regulation that continue to change the mortgage lending landscape. In the near term, it is more likely that this benchmark will continue to rise than fall.”

To individual borrowers that means more difficulties in finding funding. Chung added, “Often, lenders will quote rates that include the adjustments, without calling attention to them, in order to avoid a negative reaction from their customer.” What is stable, however, are the general requirements for finding funding. In today’s world of credit, here are the requirements:

• Great credit
• Stable income, with a minimum of two years of steady employment
• Reserves after closing
• Down-payment
• Low debt-to-income ratio
• Good loan-to-value percentage

Being proactive with credit

For any consumer looking for mortgage, auto or personal loans, it is more important than ever to work on credit scores. Chung said, “Virtually everyone can raise their scores by at least 10 to 20 points, sometimes significantly more in 30 days.” It may take some persistence and care, but in the end the savings will be worth it.

Start your unsecured personal loan application HERE!

GM recall will affect 1.3 million Chevy and Pontiac compacts

So if you want to be accurate, this GM recall is technically a Chevy recall and Pontiac recall. According to the Huffington Post, the vehicles are sold in the U.S., Canada and Mexico. General Motors is simply the parent company. GM spokesman Alan Adler told the media that it will take time to get new motors from supplier JTEKT Corp, and General Motors will let owners know when the new parts are available.

The Chevy and Pontiac recall vehicles are polite enough to warn you

If the power steering fails in your GM car, a warning light appears on the dash and a pleasant chime sounds. This is more than Toyota and Honda have offered. If only people could be warned before brakes fail or accelerators lock, they could perhaps dive out the window and continue to live a life of fulfillment. In the case of the defective Honda airbags, the car could remind you to don face shield and body armor before driving.

What cars are affected by the GM recall?

Rather than keep you waiting any longer, here’s the current list:

• 2005 through 2010 Chevy Cobalt
• 2007 through 2010 Pontiac G5
• 2005 and 2006 Pontiac Pursuit (Canada)
• 2005 and 2006 Pontiac G4 (Mexico)

These vehicles are considered safe to drive until the new power steering motors are available to be installed by dealerships. According to Adler, it typically takes 20,000 to 30,000 miles before the power steering issues appear. Furthermore, power steering “usually comes back” when the car is restarted.

Investigation of the GM recall problem began January 27

That’s when the National Highway Traffic Safety Administration started their investigation. There were 1,100 complaints about the power steering assist issue, and among the complaints were notices of 14 crashes and one injury. As GM VP of Quality Jamie Hresko said in a statement, the GM recall is more for customers’ “peace of mind,” rather than an immediate safety issue.

Need an assist?

The GM recall isn’t serious, but your auto financing issue could be. If you’re worried that your credit could be a deal breaker, try Car Deal Expert. They can connect you with lenders that can provide the best possible auto loan rates for your credit!

Related Video:

http://www.youtube.com/watch?v=_H2AeZhHaV4

The Federal Reserve is rewarding people who are looking for mortgage, auto and personal loans with a continued near-zero interest rate. It’s good news for any borrower and considering the state of the economy, it most likely will last a bit longer. The Federal Open Market Committee sustained its target for the federal funds rate to stay between 0 and .25% throughout the month of January. The importance of the move is that banks make overnight loans to one another at the federal funds rate and that influences rates on short-term loans, variable-rate credit cards and short-term CDs. So far it’s been thirteen months straight that the Fed has kept the federal funds rate at the current near-zero rate.

A change is coming

Though the near future of interest is most likely safe, things could change. The first signs of legislators wanting to push the funds rate upwards are showing. One member of the Federal Open Market Committee Thomas Hoenig said he believes that the “economic and financial conditions had changes sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted.” Chief economist for Quicken Loans Bob Walters said, the statement is the “first crack in the armor.” He believes once a few more committee members start agreeing with Hoenig, the rate most likely will start elevating.

Borrowers versus savers in the economy

For now keeping the federal funds rate low is good news for borrowers but not so good news for savers. Keeping the rate so low means that yields on insured bank deposits are going to stay low. For example, the national average on money market accounts in the beginning of January was just 0.24%. Certificates of deposit were about the same. For anyone looking to save, this is not the best time and that’s on purpose. The Fed is pushing people to start borrowing and lenders to start lending.

In addition to the federal funds rate being kept low, the Fed also bought more than a trillion dollars’ worth of mortgage-backed securities since the end of 2008. The goal for the purchase was to “reduce the cost and increase the availability of credit for the purpose of houses.” Anyone looking for a mortgage, auto or personal loan may find it much easier in this economic climate than they normally would. Walters added, “The Fed is making the loan process as easy for as many people as possible. The goal is to put money back into consumers’ pockets.” The Fed is hoping that increasing consumer’s assets causes them to return to their old ways of spending.

The future of the market

The Fed announced that after March of 2010 it will stop buying mortgage-backed securities. Everyone in the mortgage industry knows what that means: most likely, mortgage rates will quickly start rising. Mortgage analyst Adam Quinones thinks that the increase in mortgage rates might be moot. He said, “There isn’t a better time for the Fed to make an exit.” In addition, interest rates on securities will start rising slowly. For anyone looking to take out mortgage, home equity, auto or personal loans, now could be the best time to do it.

For Personal Loans, apply HERE!

Bye-bye Saturn cars! Image from Flickr.

People shopping around for cars and auto loans should take notice: You might have an opportunity to to get a brand new Saturn car for a used-car price. The same thing goes for Pontiacs.

General Motors is discontinuing both brands, so Pontiac and Saturn cars are bascially going into fire sale mode now. I am still trying to understand exactly how this sale works, so perhaps someone out there who is more business savvy could leave a comment to fill in the missing information.

Incentives plus price slashing

First of all, GM says it will pay dealers “$7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers,” says the Wall Street Journal. So, basically, GM will pay dealers to take ownership of the cars. So that’s weird and backward. Right?

Then, dealers must label these cars as “used” because technically the dealers are the first owner, not the customer. Of course, most of the cars will not actually be used, and they’ll still have zero miles (or just test drive miles) on them.

A little help?

So, what am I missing here? This strategy really makes no sense to me. Why doesn’t GM just give bonuses for Pontiac and Saturn cars sold? Why not just slash prices instead of going through the process of justifying and slapping a “used” label on there?

I’m still waiting for this to click. The brands are both being discontinued, so it can’t be for the purpose of maintaining value attached to the Pontiac and Saturn names. I’m at a loss. Let me know what you think.

The bottom line

Anyway, regardless of exactly what GM and its dealers are doing and why they are doing it, you could be able to buy Pontiac and Saturn cars for super cheap, so if you’re thinking about getting a new car sometime soon, you might want to set your plan in motion sooner rather than later.

Auto and mortgage loans require some homework before you apply. There are numerous secured and unsecured loan options out there. (Photo: picasaweb.google.com)

A review of credit scores must be done by the consumers planning to apply for either a mortgage loan or an auto loan. The credit scores of an individual are among the primary factors that decide the eligibility for the loan. While a good credit score can get you the loan easily, a bad score can either mean loans with exorbitant interest rates or even denial. A person can apply for a free credit report annually from any of the three main credit agencies. The report thus obtained will show the credit worthiness of the individual.

Types of Loans

Once the credit rating is determined, the next step is to decide on the type of loan to opt for. When it comes to mortgage loans, the consumers can choose from either a fixed rate mortgage loan or adjustable rate mortgage loan. Secured loans and unsecured loans are the two options that consumers have when it comes to auto loans. There is also the aspect of indirect and direct financing that needs to be considered. With so many options available, a thorough groundwork is needed to find a loan that best suits your budget and needs.

Budget Carefully

Consumers who are buying a house for the first time should especially keep this point in mind while making their decision. The monthly payment for the mortgage loan or auto loan should not exceed 30 percent of total monthly income. This will help provide a cushion during unforeseen circumstances. While there are loans programs that cap the limit at 31 percent, there are many others that allow consumers to go beyond this point. Hence, considering this carefully before making a final choice is a must.

Set Realistic Expectations

Setting sky-high expectations for the car and home under consideration is another common mistake that is made by many buyers who are purchasing these items for the first time. Most of them end up choosing houses in an expensive neighborhood and are willing to pay through the nose to own it. Though these might seem well within reach initially, you will begin to realize the pinch in a few months. This is the reason most financial analysts recommend chalking out expectations from your house or car and then comparing it against the budget allotted for it. In addition to this, take the eligibility limit into account too. Considering these factors beforehand will also help avoid disappointments.

Compare the Details

Consumers applying for mortgage or auto loans should get quotes from more than one financial institution. Since these loans are the biggest loans one might ever borrow in the lifetime, comparing these quotes with each other allows them to weigh the pros and cons of each quote carefully before arriving at a decision.

Apply for Unsecured Loans HERE