Debt Loans – PSP Book http://pspbook.com/ Fri, 11 Jun 2021 12:53:40 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://pspbook.com/wp-content/uploads/2021/05/default1-150x150.png Debt Loans – PSP Book http://pspbook.com/ 32 32 What an interest-free student loan means to you https://pspbook.com/what-an-interest-free-student-loan-means-to-you/ https://pspbook.com/what-an-interest-free-student-loan-means-to-you/#respond Fri, 11 Jun 2021 12:14:00 +0000 https://pspbook.com/what-an-interest-free-student-loan-means-to-you/ Tips for taking advantage of 0% interest and no payments If you have student loan debt, you’re probably breathing a sigh of relief. Borrowers with federal student debt will not have to make monthly payments and can expect a 0% interest rate until September 2021. The freeze began at the start of the pandemic as […]]]>


Tips for taking advantage of 0% interest and no payments

If you have student loan debt, you’re probably breathing a sigh of relief. Borrowers with federal student debt will not have to make monthly payments and can expect a 0% interest rate until September 2021.

The freeze began at the start of the pandemic as part of the Trump administration’s coronavirus relief effort. President Joe Biden has extended the policy for several months as his administration plans to write off some of that debt. It would be further relief for the nearly 45 million Americans with $ 1.6 trillion in student loan debt.

If you are one of the millions of people affected by the freeze, it offers a unique opportunity to take a step back and take a look at your financial health. Could this freeze be an opportunity to get out of debt or save more? We have a few options to consider.

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Option 1: Pay off your student loan debt

For those who are unemployed, abstention helps them free up money for necessities such as food, rent, and utilities. But if you haven’t lost your job, you might want to consider paying off your debt.

Since interest does not accrue during this period, you may earn larger gains over your total debt. Your goal is to pay off the principal on the loan before you have to pay interest again. If you have more than one loan, they are likely to carry different interest rates. Consider making a lump sum payment against the loans with the highest interest rate. Have your agent apply your payments to these loans first and verify that they are as per your request.

Option 2: Create an emergency savings account

The average bill for a student loan is around $ 400 per month. If you don’t pay back your loans, this extra money can be deposited into an emergency savings account.

Why is such an account a good idea? The pandemic has shown us how unpredictable life can be. You can find empowerment and a degree of control by planning for the future. Financial advisers say there’s no better time to build a healthy savings account than now.

We help you prepare for the future with an emergency savings account. (You can also read our blog on building an emergency fund to learn more.)

Here are some quick tips for opening an emergency savings account:

  • Choose a high yield FDIC insured account.
  • Make sure you can opt out at any time. Beware of opening an account that does not allow you to touch money for a specified period of time.
  • Set a savings goal. If you have a lot of debt, aim for a modest saving of $ 1,000 or $ 1,500. If you have more money to spend, shoot for three to six months of income.
  • Finally, be disciplined. Make a promise to yourself not to dip into the account outside of a real emergency.

Option 3: Save for retirement

Freezing student loan interest rates gives you the opportunity to spend more money on your retirement. If you have a 401 (k) or IRA through your employer but aren’t participating, try to match your employer’s contribution or budget to an amount that suits your expenses and income.

Or if you want to set up a retirement account on your own, we can help you open a Traditional IRA or a Roth IRA and understand the benefits and requirements of both.

Get help from the Grand Alliance

With your student loan debt on hold, now is the time to strategize how to make the most of this opportunity. If you would like help determining the best option for you, call 201-599-5500 or visit our website to see how you can take control of your finances.



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Self-employed borrowers still struggle to qualify for government guaranteed loans – press enterprise https://pspbook.com/self-employed-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-enterprise/ https://pspbook.com/self-employed-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-enterprise/#respond Thu, 10 Jun 2021 19:00:27 +0000 https://pspbook.com/self-employed-borrowers-still-struggle-to-qualify-for-government-guaranteed-loans-press-enterprise/ Last week, Fannie Mae launched a new program called Refi Now to help high-debt low-income borrowers qualify for a mortgage. The standard for qualified borrowers is that debt should not exceed 50% of their income. Under Refi Now, the eligible debt ratios reach an astronomical rate of 65%. Okay. Fair enough. But how about taking […]]]>


Last week, Fannie Mae launched a new program called Refi Now to help high-debt low-income borrowers qualify for a mortgage.

The standard for qualified borrowers is that debt should not exceed 50% of their income. Under Refi Now, the eligible debt ratios reach an astronomical rate of 65%.

Okay. Fair enough. But how about taking a break from heavily indebted self-employed borrowers as well?

It seems the answer for them is Refi Never.

Fannie Mae’s (and Freddie Mac’s) draconian COVID-19 self-employment underwriting restrictions implemented exactly one year ago are still in effect today.

The COVID goal has become all about your business then and now.

In addition to providing tax returns of at least one year, borrowers were required to provide interim financial statements.

Profit and loss accounts since the start of the year were expected to keep pace with last year’s income. Insurers speculated that declines in income since the start of the year indicated that the borrowers’ business was spinning around the drain. Deny the credit now. Abort.

The new rules have killed the prospect of getting a cheaper mortgage for too many.

For example, my store turned down about half of independent borrowers because they couldn’t qualify for a loan. Yes, half.

Profit and loss accounts since the start of the year have become an obsession with underwriting. Some lenders have allowed no tolerance for a drop in income. Others said there were no dice with a dive of more than 10%. And at least one lender I know of allows up to 25% drop as long as the borrower still qualifies with the drop in income.

Buy-and-refinance worthy borrowers who wanted cheap Fannie and Freddie rates also had to explain to their mortgage originators the granular details of the company’s bank statements that coincided with their P&L. What better truth serum for Fannie and Freddie than something bordering on a forensic audit?

Independent candidates were offended by the exam. It was like a search for a financial hole. But they accepted it because they wanted the lowest mortgage rates in modern history.

Others just said no. A few have expressed their anger in unacceptable words for you.

How else could lenders decipher financially strong applicants from weaker ones? Better safe than sorry in F&F eyes.

Yes, many businesses have crashed, burned down and closed. But many have survived and thrived on luck or government support like the PPP program.

Corporate bankruptcy attorney Richard Golubow of Winthrop, Golubow and Hollander pointed out that less gross income can always translate into more profit because of less travel, reduced office costs and no out-of-pocket expenses. entertainment during COVID.

“People worked harder,” Golubow said.

Corporate bankruptcy filings are on the decline. According to Epiq AACER Bankruptcy Information Services, the United States saw an approximately 19% decline in corporate bankruptcy filings under Chapter 11 and 13 in 2020 compared to the previous year. Since the start of the year, 2021 deposits are down more than 30%.

Figures for California BK companies have fallen by around 40% in 2020, with deposits down 10% this year so far, according to figures from Epiq AACER.

As of this week, mortgage abstentions are down to 4.16%, according to the Mortgage Bankers Association. The abstention figures were 8.55% a year ago.

More than 14 million borrowers could save an average of $ 283 per month through refinancing, according to mortgage data company Black Knight. California has nearly 1.9 million applicants who could save an average of $ 386 per month. Los Angeles, Orange, Riverside and San Bernardino counties have 952,000 borrowers ready to refinance.

How many independent borrowers could Fannie and Freddie help?

Federal Mortgage Regulatory Agency officials could not be reached on whether Fan and Fred will revert to pre-COVID self-employment underwriting rules.

Freddie Mac Rate News: The 30-year fixed rate averaged 2.96%, 3 basis points lower than last week. The 15-year fixed rate averaged 2.23%, 4 basis points lower than last week.

The Mortgage Bankers Association reported a 3.1% drop in mortgage application volume from the previous week.

At the end of the line : Assuming a borrower gets the 30-year average fixed rate on a compliant loan of $ 548,250, last year’s payment was $ 74 more than this week’s payment of $ 2,300.

What I see: Locally, well-qualified borrowers can obtain the following fixed rate mortgages with a cost of 1 point: a 30-year FHA at 2.25%, a 15-year conventional at 1.99%, a 30-year conventional at 2.625%, a 15- a conventional high balance over one year ($ 548,251 to $ 822,375) at 2.125%, a conventional high balance over 30 years at 2.75% and a jumbo over 30 years set at 2.75% .

Eye-catcher loan of the week: A 30-year fixed at 3% free of charge.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com. Its website is www.mortgagegrader.com.



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Today’s National Mortgage Rates, June 9, 2021 | Suspended tariffs https://pspbook.com/todays-national-mortgage-rates-june-9-2021-suspended-tariffs/ https://pspbook.com/todays-national-mortgage-rates-june-9-2021-suspended-tariffs/#respond Wed, 09 Jun 2021 11:30:01 +0000 https://pspbook.com/todays-national-mortgage-rates-june-9-2021-suspended-tariffs/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money. A few key mortgage rates have gone down today. The 30-year and 15-year fixed […]]]>


We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and earn us a referral commission. For more information, see How we make money.

A few key mortgage rates have gone down today. The 30-year and 15-year fixed mortgage averages have been reduced. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) have recovered.

The averages for fixed 30-year, fixed 15-year and 5/1 MRAs are:

A look at today’s mortgage refinance rates

There is good news if you are considering refinancing, as the average rates for 15-year and 30-year fixed refinance loans have declined. Shorter-term, 10-year fixed rate refinance mortgages also declined.

Take a look at today’s refinance rates:

Find the current mortgage rates for today.

30-year fixed rate mortgage rates

The 30-year average fixed mortgage interest rate is 3.07%, a decrease of 3 basis points from last week.

You can use NextAdvisor’s mortgage calculator to get a feel for your monthly payments and play with additional mortgage payments to figure out how much you could save. The mortgage calculator can also show you the total interest you will pay over the life of the loan

15-year fixed rate mortgage rates

The median rate for a 15-year fixed-rate mortgage is 2.36%, which is 2 basis points down from seven days ago.

The monthly payment on a 15-year fixed rate mortgage is more than what you would pay on a 30-year mortgage. But 15-year loans have huge advantages: you’ll pay thousands of less interest and pay off your loan much faster.

Variable rate mortgage rates 5/1

A 5/1 ARM has an average rate of 3.24%, an increase of 9 basis points from a week ago.

An ARM is ideal for individuals who will sell or refinance before rates change. If not, their interest rates could end up being considerably higher after a rate adjustment.

For the first five years, a 5/1 ARM will typically have a lower interest rate than a 30-year fixed mortgage. Just keep in mind that your payment could end up being several hundred dollars higher after a rate adjustment, depending on the terms of your loan.

Mortgage rate trends

To see where mortgage rates are going, we rely on information gathered by Bankrate, which is owned by the same parent company as NextAdvisor. If we look at historic mortgage rates, we are in an exceptionally low interest rate environment. The table below compares the average rates today to what they were a week ago and is based on information provided to Bankrate by lenders nationwide:

Prices exact as of June 9, 2021.

A number of factors can influence mortgage rates, from inflation to unemployment. In general, inflation results in higher interest rates and vice versa. The dollar loses value with rising inflation, making mortgage-backed securities less attractive to investors, leading to lower prices and higher yields. And if yields rise, interest rates become more expensive for borrowers.

A strong economy has historically increased the demand for housing. When more homes are sold, the demand for mortgages also increases, which can lead to higher rates. But the flip side is also true: a drop in mortgage demand could signal an upcoming drop in mortgage rates.

Should I lock in my mortgage rate now?

Mortgage rates go up and down daily, and it is impossible to keep the market in sync. So locking in your interest rate right now is a good idea because overall rates are exceptionally low.

A rate foreclosure will only last for a specified period of time, typically 30 to 60 days. If you have a problem with closing and it looks like your rate foreclosure will expire, you should speak with your lender. He may be able to extend the rate foreclosure, however, you may have to pay a fee for this lien.

What future for mortgage rates?

To start the year, mortgage rates skyrocketed and crossed 3%, a level we haven’t seen since July 2020. After this dramatic hike, we saw a cut that brought rates below. 3%. With rates hovering around 3%, they’re still close to or below the levels many experts expected mortgage rates to be in 2021.

The way we have handled the coronavirus and our economic recovery will have a huge impact on rates. As the economy recovers, we should see inflation rise, which will put upward pressure on mortgage rates. But despite the potential for rising inflation, mortgage rates are expected to stay low this year. One reason for this: The Federal Reserve believes that low rates will help our economy regain momentum. He is therefore unlikely to take any action that could raise rates.

Mortgage rate forecasts 2021

In the short term, any change in mortgage rates should be minimal. The rates should therefore be around 3% for the moment.

While there is nothing this week that should cause rates to spike or drop dramatically, the unexpected can happen. And currently, the economy still has a long way to go to return to its pre-pandemic level.

How to get the best mortgage rate

Your credit score, loan-to-value ratio (LTV), and debt-to-income ratio (DTI) are the most important factors lenders use to determine your mortgage rate.

To get the best interest rate, you will need a credit score between 700 and 800. Having a credit score above 800 is good, but probably won’t have a major impact on your rate.

Having fewer debt repayments can make buying a home less expensive. When you have fewer debt repayments to make each month, it lowers your DTI. And a lower DTI will help you get a better mortgage rate.

Banks offer the largest mortgage rate reductions to borrowers deemed to be less risky. A sure-fire way to signal that you’re more likely to make your monthly payments is to have a larger down payment. A down payment of 20% or more will save you money in two ways: with a lower mortgage rate, and you can avoid paying for private mortgage insurance (PMI).



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The BoT defines 2 trajectories for household debt https://pspbook.com/the-bot-defines-2-trajectories-for-household-debt/ https://pspbook.com/the-bot-defines-2-trajectories-for-household-debt/#respond Tue, 08 Jun 2021 22:33:00 +0000 https://pspbook.com/the-bot-defines-2-trajectories-for-household-debt/ The BoT defines 2 trajectories for household debt Proposals include fewer consumer loans People discuss personal loans at a Money Expo held in Bitec in December. Household debt rose by around 5% in the first quarter of this year. (Photo by Somchai Poomlard) A central bank economist predicts a crossroads for the country’s household debt […]]]>


The BoT defines 2 trajectories for household debt

Proposals include fewer consumer loans

People discuss personal loans at a Money Expo held in Bitec in December. Household debt rose by around 5% in the first quarter of this year. (Photo by Somchai Poomlard)

A central bank economist predicts a crossroads for the country’s household debt over the next four years, rising to either 92.8% of GDP or 79.1%.

If Thai household debt increases to 1.2 times GDP, the average growth over the past five years, the country’s household debt will rise to 18.1 trillion baht or 92.8% of GDP by 2025, from $ 14 trillion in 2020 or 89.3 percent of GDP, said Don Nakornthab, senior director of the Bank of Thailand’s financial stability department.

If household debt increases sustainably by 2% per year on average, Thai household debt will reach 15.4 trillion baht or 79.1% of GDP by 2025.

He predicted that the country’s household debt in the first quarter of 2021 increased by about 5% year-on-year. In the fourth quarter of 2020, Thai household debt increased 3.9% year on year.

The Bank for International Settlements threshold recommends that a country’s household debt ratio should not exceed 85% of GDP.

According to central bank data for December 2020, the household debt burden was largely the result of credit cards and personal loans. The debt burden covering principal loans and interest on these two unsecured loan products represents 58% of total consumer loans.

Mr. Don offers three options to reduce the country’s household debt and bolster household incomes for the post-Covid era. The options include: restructuring the debt, discounting the debt and limiting the creation of new loans.

The central bank launched a debt restructuring program during the first wave of Covid-19 in March 2020.

A debt discount is an option under the third phase of the Bank of Thailand’s debt relief measures for auto loan borrowers on a case-by-case basis. The discount is offered to borrowers with a good payment record and limited debt following a car auction.

“We must first pay attention to debt restructuring to help borrowing households overcome the crisis. In the post-Covid era, when the economy recovers, we must pay more attention to reducing debt. household debt as this is essential for long-term sustainable economic growth. run, “he said.

The slowdown in new consumer loans will be a key factor in reducing household debt in the post-Covid period, Don said. The central bank’s responsible lending policy supports financial institutions in reasonably increasing new loans.

Macroprudential measures through debt service ratio (DSR) control are another mechanism to limit the creation of new loans, especially for credit cards and personal loans, he said.

“We can improve the DSR of the entire financial system by limiting credit cards for borrowers or reducing the lines of credit available for personal loans. Several central banks in the region oversee unsecured loan products with such measures, ”Don said.

Data from the National Statistics Office revealed that the DSR of the local financial system is 40% on average. However, central bank data from a report on financial institutions revealed that the ratio exceeds 40%.



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Debt Relief Initiative Benefiting Hundreds of California Farmers https://pspbook.com/debt-relief-initiative-benefiting-hundreds-of-california-farmers/ https://pspbook.com/debt-relief-initiative-benefiting-hundreds-of-california-farmers/#respond Mon, 07 Jun 2021 23:01:00 +0000 https://pspbook.com/debt-relief-initiative-benefiting-hundreds-of-california-farmers/ The US Department of Agriculture (USDA) Debt Relief Initiative will provide assistance to many socially disadvantaged farmers in California. USDA Assistant Secretary for Administration Osker Gonzales spoke to AgNet West about some of the details of the program. The initiative is expected to provide assistance to hundreds of California farmers. Gonzales said the debt relief […]]]>


The US Department of Agriculture (USDA) Debt Relief Initiative will provide assistance to many socially disadvantaged farmers in California. USDA Assistant Secretary for Administration Osker Gonzales spoke to AgNet West about some of the details of the program. The initiative is expected to provide assistance to hundreds of California farmers. Gonzales said the debt relief program is especially important for California because agriculture is a main pillar of the state’s economy.

“The USDA currently estimates that approximately 14,000 borrowers across the country meet the socially disadvantaged definition,” Gonzales explained. “Here in California, the number I was looking at earlier in terms of individual borrowers who might be eligible was around 400 here in California alone. These would be borrowers who have taken out loans that are direct loans. “

The Qualified Debt Relief Initiative will process loan balances based on what was recorded on January 1, 2021. All payments made by borrowers since that date will be fully refunded. “The 120% of the payment they will receive if they are actually eligible represents the total cost of the loan to be included 100% in the loan balance. The 20 percent repayment is available for tax debts and other fees associated with paying the debt, ”Gonzales said.

The USDA has already started sending notices to eligible borrowers involved in the direct lending program. Gonzales noted that some farmers who received notices were unsure of how the debt relief initiative would work. USDA will continue to engage in outreach efforts to help borrowers fully understand the program.

“I understand that additional information will be sent in different languages,” Gonzales explained. “We envision between June and December 31, when loan repayments will be made on an ongoing basis.”

Listen to the interview below.



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Justice: The bank cheated on the family for a loan guarantee | News, Sports, Jobs https://pspbook.com/justice-the-bank-cheated-on-the-family-for-a-loan-guarantee-news-sports-jobs/ https://pspbook.com/justice-the-bank-cheated-on-the-family-for-a-loan-guarantee-news-sports-jobs/#respond Mon, 07 Jun 2021 04:13:30 +0000 https://pspbook.com/justice-the-bank-cheated-on-the-family-for-a-loan-guarantee-news-sports-jobs/ Justice CHARLESTON – In a new court case, West Virginia Governor Jim Justice criticized a failed UK bank for fraudulently instigating him to personally guarantee $ 700 million in loans taken out by his companies. In the amended complaint filed on Friday, the Justice family and the coal companies claim that Greensill Capital UK “Perpetrated […]]]>


Justice

CHARLESTON – In a new court case, West Virginia Governor Jim Justice criticized a failed UK bank for fraudulently instigating him to personally guarantee $ 700 million in loans taken out by his companies.

In the amended complaint filed on Friday, the Justice family and the coal companies claim that Greensill Capital UK “Perpetrated continuous and very profitable fraud”.

Justice told reporters on Tuesday that the loans are “a burden on our family beyond belief.” Justice’s Bluestone Resources Inc., which is involved in mining metallurgical coal used to make steel, sued Greensill in March in federal court in New York.

The Republican governor’s business issues, who Forbes recently pulled from his billionaire list due to growing debt, have been publicly aired over the past week.

In addition to the $ 700 million owed to Greensill, Justice revealed in a separate lawsuit that he was personally liable for $ 368 million at Virginia-based Carter Bank & Trust.

And the justice companies face several other problems, including penalties totaling $ 3.2 million from the federal government and lawsuits for allegations of non-delivery of coal by its companies.

The latest filing in the case against Greensill in the US District Court in New York shows that the governor and his wife, Cathy Justice, and son Jay Justice have personally guaranteed payment for Bluestone’s loans. The complaint alleges that the London-based bank misled them by hiding its own financial risk.

Greensill, a London-based supply chain finance company, filed for bankruptcy in March over allegations of fraud. The Financial Conduct Authority, the UK’s financial regulator, has announced a formal investigation into the Greensill collapse after receiving allegations that it “Potentially criminal in nature”.

Greensill began lending to Bluestone in 2018. The company sought funding after a period of decline under the ownership of Russian mining and metallurgical company Mechel, according to court documents.

“When the Russians had Bluestone, what happened to Bluestone? It was completely reduced to nothing ”, justice declared at a press conference on Tuesday. The company had unpaid vendor obligations and tax debts when the Justice family took over it in 2015.

Greensill’s loan was supposed to help rebuild the business, but bank officials in November 2020 began asking for early repayment of the loan and additional fees, according to the complaint.

The Justice family say they only personally signed the loans with the understanding that repayments would start no earlier than 2023, when Bluestone would have had years to rebuild and generate cash flow. Justice and its companies are seeking damages from Greensill in their lawsuit.

At his Tuesday press conference, Justice briefly touched on his other loan from Carter Bank in Virginia, saying he still personally guarantees loans for his businesses.

“I personally guaranteed the loans” he said. “The loans were always personally guaranteed when they moved from Carter Bank through Greensill to other banks along the way. It has been for a long, long, long time.

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USDA begins rollout of debt relief for socially disadvantaged farmers and ranchers https://pspbook.com/usda-begins-rollout-of-debt-relief-for-socially-disadvantaged-farmers-and-ranchers/ https://pspbook.com/usda-begins-rollout-of-debt-relief-for-socially-disadvantaged-farmers-and-ranchers/#respond Sat, 05 Jun 2021 10:33:18 +0000 https://pspbook.com/usda-begins-rollout-of-debt-relief-for-socially-disadvantaged-farmers-and-ranchers/ The US bailout has allocated $ 4 billion for the debt relief plan, but the USDA can exceed that amount. The law says the ministry can spend “as much as it needs” on the program, which offers 120% debt relief. The extra 20% goes to pay taxes on the payments, and Farm Service Agency administrator […]]]>


The US bailout has allocated $ 4 billion for the debt relief plan, but the USDA can exceed that amount. The law says the ministry can spend “as much as it needs” on the program, which offers 120% debt relief.

The extra 20% goes to pay taxes on the payments, and Farm Service Agency administrator Zach Ducheneaux said USDA plans to partner with local community groups to offer free tax advice to growers. .

Subsequent notice of guaranteed loan balances and out-of-collateral direct loans that were previously referred to the Treasury Department for debt collection for set-off will be issued within 120 days.

“The US bailout allowed USDA to provide historic debt relief to socially disadvantaged farmers and ranchers starting in June,” Agriculture Secretary Tom Vilsack said. “USDA is once again committed to earning the trust of American farmers and ranchers by using a new set of tools provided in the US bailout to increase opportunity, advance fairness and fight systemic discrimination in USDA programs. “

According to the USDA, there are approximately 14,400 SDA borrowers with approximately $ 2.7 billion in debt, along with another overdue amount of over $ 400 million. Over 80% of borrowers hold direct loans and account for about 65% of debt, or about $ 2 billion. The rest, the secured lenders, have about $ 1 billion.

Meanwhile, the FSA finds that more producers than those on the books as socially disadvantaged are coming forward to collect the payments.

The department doesn’t have exact figures on how many producers have done so, but Ducheneaux and others involved in the process said they weren’t surprised, given the history of discrimination. faced by farmers of color.

Ducheneaux said they won’t be blamed for producers not checking the appropriate box on their AD-2047s in the past. Instead, they will be able to check this box now to show that they are eligible for payments.

“If they make this designation, they will receive a letter of offer,” said Ducheneaux. “They will have to put their signature attesting to this in this letter of offer.”

“The ministry as a whole and the Farm Service Agency have a policy of trusting the farmer,” he said.

A USDA spokesperson elaborated on the matter. “As all loan recipients know, when you sign a document for a loan of any kind, it is a legal document that carries an obligation under the law. In addition to due diligence. standard of the FSA on all loan programs, section 1006 of the [American Rescue Plan] provides $ 5 million to the USDA Inspector General’s office to monitor how funds have been disbursed according to law. We are waiting and anticipating the OIG to carry out its functions. “


Ducheneaux cited a VICE News article earlier this month on the debt relief program that included comments from a Louisiana FSA county commissioner opposed to the debt relief program who said that the Minority borrowers are in debt “because they spend their money on other things.” Their priorities might not be right.

“Imagine you could pass for white and this is the environment you work in,” said Ducheneaux. “You bet your last dollar that you’re not going to tick the African American or American Indian box.”

“This is the reality that we are trying to overcome,” he said. “And that’s why we were very welcoming from the start. Come in, update your AD-2047. We put it on our website.

Banks, however, fear losing anticipated income from interest payments on USDA-guaranteed loans when they are suddenly repaid. In a recent letter to Agriculture Secretary Tom Vilsack, they asked for reimbursement of future lost income.

“If the USDA does not compensate lenders for such disruptions or avoid sudden loan repayments, the likely result will be less access to credit for those seeking USDA guaranteed loans in the future,” including SDA farmers / ranchers, ”the American Bankers Association, Independent Community Bankers of America and the National Rural Lenders Association said in the letter. They also expressed concern about the damage to secondary markets – the brokers and loan aggregators who buy and trade loans from banks.

“We’re just saying, look at the consequences, recognize that there are going to be costs… and provide compensation to the lenders so that we don’t get hurt because some of them have made huge commitments to serve the minority borrowers. and young people, starting small farmers through the guaranteed loan program, ”Mark Scanlan, senior vice president of agriculture and rural policy at ICBA, told Agri-Pulse.

“The USDA has the flexibility to make sure that lenders are not harmed by the way this program is implemented,” he said, noting that bankers “are simply making suggestions to the USDA. on implementation “, not threatening to interrupt lending to socially disadvantaged farmers.

“Lenders are going to look at how this program is run and see how much they want to participate in these programs – not [just] socially disadvantaged farmers, but the program as a whole guaranteed, ”he said.

He cited the example – also mentioned in documents sent to the USDA – of a bank in Georgia with a portfolio of over $ 200 million in loans to socially disadvantaged farmers. The loss of this loan amount would force the bank to adopt “a completely different business plan”.

Ducheneaux asserts that banks are “an essential partner” in providing loans to farmers “because we do not have the budgetary authority, as we currently operate, to meet all the credit needs that exist in agriculture and breeding “. FSA educated itself “to better understand what the relationship between secured lenders and borrowers looks like,” as well as bankers’ concerns about secondary markets.

Steve Davies contributed to this report. Wyant is President and Founder of Agri-Pulse Communications Inc. For more information, visit www.Agri-Pulse.com.



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MILLENNIUM MONEY: She crushed over $ 20,000 in debt at age 24 | Business https://pspbook.com/millennium-money-she-crushed-over-20000-in-debt-at-age-24-business/ https://pspbook.com/millennium-money-she-crushed-over-20000-in-debt-at-age-24-business/#respond Fri, 04 Jun 2021 04:30:00 +0000 https://pspbook.com/millennium-money-she-crushed-over-20000-in-debt-at-age-24-business/ With over $ 195,000 in student debt, Annika Hudak saw little harm in swiping her credit cards. “I was in the mind that I’ll be in debt forever, so what’s a few thousand dollars here,” says Hudak, 25, a product analyst in Oregon. Hudak eventually racked up around $ 20,242 on four credit cards by […]]]>


With over $ 195,000 in student debt, Annika Hudak saw little harm in swiping her credit cards.

“I was in the mind that I’ll be in debt forever, so what’s a few thousand dollars here,” says Hudak, 25, a product analyst in Oregon.

Hudak eventually racked up around $ 20,242 on four credit cards by billing for food, books, school supplies, and other expenses. Like her, many borrowers also have other forms of student debt besides student loans, including 21% who have credit card debt, according to a recently released Federal Reserve report based on data from 2020. which explores the economic well-being of American households.

In college and in the early years of her career, she had not found her financial place. It wasn’t until she heard the debt repayment stories of other people on YouTube and other platforms that she felt hope, learned money management skills, and learned how to do it. found a roadmap to paying off the debt.

In January 2020, she began her journey debt free and paid off all credit cards by the end of the year. Here’s how.

KNOW YOUR GOAL AND YOUR OBSTACLES

Hudak has set a goal of getting out of debt within 30 years, considering goals such as building wealth or buying a home. She wrote down all of her debts as they went along to get a complete picture of the amount owed.

She also looked at the expenses. It’s important to examine credit card and bank account statements to see where the money is going, says Jeffrey Arevalo, financial wellness expert at GreenPath, a nonprofit credit counseling agency. Look for opportunities to reduce unnecessary purchases like unused subscriptions.

Hudak budgeted months in advance to plan for debt payments. “It’s definitely a trial and error process, and you have to find what works for you,” she says.

CHOOSING THE RIGHT METHOD OF DEBT SETTLEMENT

When exploring ways to pay off credit card debt, checking your credit score in a credit card issuer’s mobile app is a good way to find out where you are with options.

A credit card with balance transfer, for example, typically requires a good FICO credit score of 690 or higher. This option allows you to transfer debt from a high interest rate credit card to a lower interest rate card, typically for a fee of 3% to 5% of the transferred amount. Money saved on interest can be applied to your balance, reducing the time it takes to pay off debt. The ideal balance transfer card has no annual fees, 0% introductory APR, and low balance transfer fees.

“Look at the cost of the fees versus the savings and interest,” Arevalo says. “This saving of interest a lot of times is going to be a big advantage.”

Hudak was approved for a balance transfer with an introductory 0% seven-month APR in January 2020.

The amount transferred can only be as high as your credit limit. For Hudak, that means she was able to transfer just under half of her highest credit card balance to the new card. The remainder of that balance was subject to an interest rate of 26%, so two months later she applied for another balance transfer card through her credit union, which offered an APR of 8.99%.

DETERMINE YOUR PAYMENT STRATEGY, SET A DEADLINE

Hudak stopped using his credit cards and aimed to pay off one of them during that initial seven-month promotional period. She used a debt reduction calculator to find out how long it would take to pay off all of her cards.

Hudak first tackled smaller amounts of debt – known as the “snowball method” – to get instant gratification and stay motivated with every balance paid. Another approach, the “avalanche method”, would be to pay off the high-interest debt first. Choose the method that’s right for you.

His plan also called for earning extra income to go into debt. She kept her full-time job amid the COVID-19 pandemic and had a few side concerts. She taught kids at a virtual coding camp, edited videos, and got paid for other chores as needed.

TRACK YOUR PROGRESS

Hudak stayed motivated with a budgeting app to count every dollar. She also used a bullet journal and spreadsheet to track combined debts and celebrate small wins.

She says she paid off the first card in June and by November 2020, at age 24, she had completely written off her credit card debt. After this step, she devoted her energy and money to her car loan and paid it off in February. His efforts are now focused on demolishing that six-figure student loan.

“I think staying focused is my biggest goal and also the most difficult because now that I’ve paid off those little debts I don’t have that next win anytime soon,” said Hudak.

Hudak aims to be debt free by 2026 and is now on the other side of the YouTube camera. She hopes her channel, Annika Hudak, will be a source of income as she documents her debt-free journey to show others that it is possible.



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Nordic aviation lenders seek exit before debt freeze expires https://pspbook.com/nordic-aviation-lenders-seek-exit-before-debt-freeze-expires/ https://pspbook.com/nordic-aviation-lenders-seek-exit-before-debt-freeze-expires/#respond Wed, 02 Jun 2021 15:30:26 +0000 https://pspbook.com/nordic-aviation-lenders-seek-exit-before-debt-freeze-expires/ Bank lenders are looking to reduce their exposure to one of the world’s largest aircraft lessors before the debt payment moratorium ends next month. An anonymous lender to a unit of Nordic Aviation Capital AS is looking to sell a $ 50 million portion of a credit facility this week, according to people familiar with […]]]>


Bank lenders are looking to reduce their exposure to one of the world’s largest aircraft lessors before the debt payment moratorium ends next month.

An anonymous lender to a unit of Nordic Aviation Capital AS is looking to sell a $ 50 million portion of a credit facility this week, according to people familiar with the matter, who have asked not to be identified because they are not. allowed to speak in public. about that.

The seller can assign the debt, which is secured by the assets held in NAC Aviation 29 DAC, at a discount of around 30% from face value, they said. A representative for Nordic Aviation declined to comment on the potential loan sale.

Founded in Denmark in 1990, Nordic Aviation leases nearly 500 aircraft to around 75 airline customers and has about $ 5.9 billion in debt backed by different assets held in subsidiaries, a separate person familiar with the matter said. The company is looking to develop a restructuring plan that will capitalize on an expected upturn in international travel.

Sculptor Capital Management is one of the investment funds that have bought bank loans from Nordic Aviation in the past, the people said. A spokesperson for Sculptor declined to comment.

Freezing of payments

Last year, the lessor agreed to a debt payment freeze with creditors until the end of June 2021. It recently reached an agreement to extend the deadline until July 31, the one of the people. Major shareholders of Nordic Aviation – Singapore sovereign wealth fund GIC and private equity firm EQT Partners – have said they will not further help support the company after injecting $ 60 million fresh funds in 2020.

Company founder and shareholder Martin Moller Nielsen told Danish newspaper Borsen in March that the lessor would need a “Miracle” to avoid restructuring.



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BoT Launches Auto Loan Debt Program https://pspbook.com/bot-launches-auto-loan-debt-program/ https://pspbook.com/bot-launches-auto-loan-debt-program/#respond Tue, 01 Jun 2021 23:37:00 +0000 https://pspbook.com/bot-launches-auto-loan-debt-program/ People explore the cars at an auto show in Bangkok. Arnun chonmahatrakool The Bank of Thailand has implemented a new auto loan debt mediation program, aimed at helping 100,000 borrowers with debt relief during the pandemic. The central bank and auto creditors plan to offer the program until July 31. Many auto loan borrowers are […]]]>


People explore the cars at an auto show in Bangkok. Arnun chonmahatrakool

The Bank of Thailand has implemented a new auto loan debt mediation program, aimed at helping 100,000 borrowers with debt relief during the pandemic.

The central bank and auto creditors plan to offer the program until July 31.

Many auto loan borrowers are struggling to repay their debt due to the ongoing pandemic.

The scheme covers three groups. The first group is that of borrowers whose debt is not classified as non-performing loan and whose cars have not been foreclosed.

The cars of the second group were seized, but the cars were not auctioned.

The third group has seen their cars auctioned off and they still have a debt burden, said central bank deputy governor for Oversight Group 2 Thanyanit Niyomkarn.

The total outstanding auto loans covering both banks and non-banks amount to 2.5 trillion baht on 6.6 million auto loan accounts.

12 auto credit service providers join the mediation program, accounting for 65% of total auto loans outstanding in the country.

The central bank expects some 100,000 auto loan accounts or 38 billion baht of outstanding auto loans to participate in the program.

On average, a borrower’s debt burden is around 380,000 baht, the bank said.

“A lot of these borrowers are making a living, and most of them have been affected by the pandemic,” she said.

“This mediation program is another way to help those affected by the pandemic.”

Ms Thanyanit said the central bank, working with regulators, was considering adjusting some car auction rules to ensure fair treatment for auto loan borrowers.

The Bank of Thailand has also held talks with auto loan providers to offer a debt discount to borrowers after the car auctions, she said.

The debt discount would be offered to borrowers with a good payment record and limited debt after a car auction on a case-by-case basis, Ms Thanyanit said.

The central bank also offers a debt mediation program for credit card and personal loan products from February to June.

Some 700,000 credit card and personal loan accounts have joined the program, of which 150,000 have completed loan reconciliation.

The good response to this debt reconciliation program led the central bank to extend the program to auto loans, she said.

“The central bank is considering expanding the debt mediation program to include mortgages, but it needs more time to study the feasibility due to the greater complexity and more regulatory agencies for them. guaranteed home loan products, ”Ms. Thanyanit said.



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