Leadpile's Blog» interest rates

Higher Interest Rates, Lower Lines Of Credit!

Natasha Aronov — Tue, 09 Feb 2010 04:27:50 +0000

As if consumers do not have enough financial stress to worry about, the credit card companies are decreasing credit limits and increasing annual percentage rates. Due to the high number of people without jobs and suffering financial hardship, the credit card companies have had billions of dollars worth of losses. To attempt to fill in the gap, the card companies are making changes effecting card holders who are behind in payments in addition to card holders who have always paid their bills on time and have a perfect history. Credit cards have in the past always been issued to people with an interest rate and credit limit based on their specific risk to default.
With the economy in the state that is has been and many people with additional debt, consumers have been forced to use their credit limits, now faced with paying off balances with interest rates that have doubled or tripled.
According to msnbc.com we are entering a new “era” for credit cards. Previously as many of us experienced, credit card offers would appear daily in your mailbox, each with enormous credit limits and interest rates that were so competitive that it made applying for the card hard to resist. Many people who “couldn’t resist” are now paying for it with the increase in interest.
Possible changes in the near future…The new Credit Card Bill of Rights. The American Bankers association has stated that the new law will limit the amount of credit that is available and it will come attached to a higher price tag. In theory, consumers will have a better idea of long term costs and terms with the new law and will allow them to make more educated decisions.
LeadPile currently helps match consumers with unsecured debt such as credit card debt with debt settlement and debt consolidation companies, but what will change in the future of credit card debt if there is a “credit card bill of rights” that gets passed? Will it really affect anything? Who will feel it the most?

Payday Loans in New Hampshire?

Natasha Aronov — Thu, 28 Jan 2010 02:48:35 +0000

A year ago in New Hampshire payday and title loans were outlawed to “protect” consumers from the interest rates. This however did not completely stop all lenders from being able to offer additional types of short-term high interest loans to consumers.
Today the house will vote to amend the proposed bill which would put a 36% cap on annual interest rates, including some fees for any loan under $10,000. This would apply to loans and personal lines of credit. According to the Concord Monitor the vote is for a bill meant to close what some consider to be a loophole in the law. As there as been much controversy and disagreement regarding the bill which was originally discussed in the house two weeks ago with a recommendation that a bipartisan majority believed the bill to be overkill. The new proposed amendment to the bill would cap the interest rates at 36% while allowing additional membership fees, late fees and participation fees. These fees could only be charged one time and the banking commissioner would have the authority to determine what fees are fair.
Often time consumers with bad credit or in a time of need have no where else to turn for a quick loan and these lenders were filling the demand for these loans. If the loans were taken away, this would leave many people without other options. Hopefully, a decision can be agreed upon that not only has the consumers best interest in mind regarding the interest rates, but also in times of need and being able to access quick short term loans when necessary. Leadpile is watching what happens in NH………….

Credit Card Interest Rates At 79.9%… REALLY?

Mari Holt — Fri, 18 Dec 2009 21:10:53 +0000

It seems that we have a new winner on the highest credit card interest rate to potentially charge a consumer…….. 79.9%! It appears that First Premier Bank has a credit card available to subprime consumers, however the potential interest rate can exceed 79%. It seems that there are fees being charged to the consumer that were more than the allowed balance (first year fees of $256 and the maximum line of credit is $250).
Does this mean that since there are a lot more credit challenged people these days, that this sort of credit card is going to be their only option? On the other hand if someone is not able to get any money elsewhere and really needs to start establishing their credit, then this could be their only option. I am sure giving out money to those that can not get credit anywhere else is a risk in itself to First Premier Bank, and charging higher than normal interest rate is something that have to do, but really 79+%? I think having a credit card interest rate this high, just seems a little excessive. Pat on the back to those that are willing to lend and give money to those that can not get credit elsewhere, but can’t you be a little nicer than 79.9%?

House Approves Credit Card Bill…Help Could Be On The Way

Mari Holt — Fri, 01 May 2009 16:45:02 +0000

Thursday the House of Representatives passed a bill that has potential to protect consumers from the credit card companies. It appears this potential law could pretty much affect all credit card holders. The good news is some of this could be implemented within 90 days if the law makes it through the Senate and our nation’s president. The Associated Press points out some of the details of this new bill. The bill would prevent retroactive rate increases and prevent credit card companies from giving credit cards to anyone under the age of 18. “This is a unique opportunity to end abusive practices that afflict millions of families across the nation, to contribute to our economic recovery, and to take a stand for American consumers,” Sen. Christopher Dodd, chairman of the Senate Banking Committee and the bill’s primary sponsor, said after the House vote. “Now it is the Senate’s turn to act.”

With our nation’s auto makers, mortgage companies and financial institutions getting a “bail out”, it is kinda nice to see the government lending a helping hand to consumers when it comes to their credit cards.

Auto Lead Exchange: motorcycle leads?

Mari Holt — Wed, 06 Aug 2008 14:58:46 +0000

In recent weeks the 3 largest automakers have pulled out of leasing. This seems to be affecting the industry already. According to Automotive News one in every 5 vehicles sold was a lease. This is up from 2003 when 1 out of 3 vehicles sold was a lease.

What might happen with these leasing numbers in the near future? Unfortunately, with Chrysler, their leasing partner Chase had pulled out of offering leases, so this took them away from the leasing arena. Knowing this, that means that a few things we could see starting to happen:
1. Consumers begin to purchase vehicles by foreign auto makers.
2. Auto lenders offer lower interest rates.
3. Longer term auto loans becomes a much more common practice.
4. More motorcycles and scooters sales.

What happens in the up and coming months will most likely determine what the actual affect is, and who will survive these changes.
With these auto industry changes it could also affect lead generation companies. Will it increase the number of consumers going online to get an auto, or will it not really have too much affect on the overall lead generation industry? Time will tell.
Leadpile Auto Lead Exchange will have open arms no matter what the outcome is.

IDEA: Maybe with all the changes going on in the auto industry and gas being so high, Leadpile might want to consider bringing in “scooter” and “motorcycle” leads? ummmmmmm?

The average debt climbed to $16,600

Andy J. — Mon, 02 Jun 2008 21:49:07 +0000

As more and more consumers are increasingly finding themselves in the unfortunate situation of dealing with higher interest rates and other fees as credit card companies respond to delinquencies, there will be an even bigger opportunity for Debt Consolidation and Debt Settlement Companies to gain market share. This past January, the average debt on credit accounts and fixed-payment accounts such as auto loans climbed to $16,600, up from $15,500 last April, according to the credit reporting agency Experian. Over the same period, the average number of accounts per individual that are overdue by one payment has increased. As gas prices continue to increase, and more people go delinquent, the demand for assistance with debt will increase. Good time to be in the debt consolidation business!