Share Responsibility

We’ve all heard the comments in the news. Some pundits blame the poor for our credit crisis. Others blame the banks for their predatory practices. The reality is that blame should be shared. Most people should recognize that there is something wrong with being offered loans

Sure, the lenders started making loans with little data. But, this wasn’t a overnight event. It was a slippery slope. First, they started not validating income, then they started not validating income. In the end, they were making what the industry calls Liar’s loans.

Once you’ve accepted that you have a role in your now tough loan, here’s what you can do:

• First, figure out what you can afford. There no reason to do snazzy refis to stay in a house you really can’t afford.
• Talk to your lender. If you are about to miss payments. Talk to them.
• Seek out a credit counselor. Check out our list of Dept. of Justice approved credit counseling agencies.

Here’s what NOT to do:

• Don’t seek your slate to be wiped clean. Look too many us want to just to be forgiven our debts saying things like “the big bad company can afford it”. Come on, don’t expect a free ride. Be happy to get some assistance
• Stay clear of those internet ads and late night TV ads you see. Most of these companies charge way more than they should – that’s why they can afford late night TV ads.

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• Credit Score Review – Episode #86
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• What’s NOT Considered in a FICO Credit Score Calculation? – Episode #6