Some Tennessee consumers may enter the New Year with overwhelming debt. Many consumers get swept away by the multitude of exciting product offers over the holidays and overspend despite their good intentions not to do so. This may lead to consumers giving in to the aggressive marketing of payday loans. However, payday loans typically go hand-in-hand with excessive interest rates, and consumers end up with the dilemma of whether to first pay their credit card debt or the payday loans.
The securitization of mortgages was a very profitable business for many financial institutions. This created a massive demand for mortgages that could be bundled together and sold as a security on the investment market.
By the time the lender has completed all of the necessary steps required to foreclose and sell a property, they are likely to have lost a substantial portion of their loan value. This means, in reality, if they had accepted a principal reduction from a borrower in a Chapter 13, at the end of the day, they may not be economically any worse off and may actually be better off.
The working paper from Federal Reserve Bank of Philadelphia suggests that the bad effects of allowing mortgage strip-downs or cram-downs in Chapter 13 would not be as significant or adverse as the banking industry suggests.
One of the most troubling aspects of the housing bubble was the way in which it affected home valuations. Because homes were seen as a "can't lose" proposition, banks, other lenders and even those securitizing bundled mortgages cared little for the true value of the property. The transaction was what matter and what generated the incredible salaries of many of these individuals.
Tennessee homeowners who are facing foreclosure may be desperate to find a solution. Not knowing how long they will be able to hold off foreclosure in order to provide a roof over the heads of their loved ones can lead to high levels of stress and anxiety. A homeowner recently shared the story of his long-lasting struggle to keep his home.
Tennessee consumers may agree that the time approaching the holidays is the time when their resistance to credit card spending is at its lowest. As if that is not enough pressure, store assistants use all their skills to pressure consumers into taking on store-issued credit cards. However, for many consumers, additional cards could mean extra stress related to credit card debt. A recent study showed that almost a third of shoppers were bullied by cashiers in an effort to convince them of the advantages of branded credit cards, and many of those consumers succumbed to the pressure and took on such cards.