Know your credit?

Broompilot

Veteran Expediter
Not your score, more people know that I would bet than know exactly the terms of the mortgage on the house they own or once owned.

Do you? Do you know your intrest rate? Simple intrest or is it adjustable? I have read over and over in the papers during my travels on stories about pooooor ole Betty and Bob and how they had no idea that the 5% intrest rate they got three years ago with the underlying adjustable that is going to 8 this year and 11 in three more years that the amount they will pay for the monthly mortage is going to more than double.

Heck ole Bob is saying it is a RIP OFF. Well by Bobs calculation he was under the impression that one point meant that the $400 at 5% monthly payment would only go up well gee GET THIS $4.00 FOUR DOLLARS FOR EACH POINT. He had know idea that 1% meant the whole mortage amount of $125,000.00 and is now facing FORECLOSURE. Poor Bob he did not read the fine print let alone have a LAWYER represent him in the closing. He had no idea they got him for Credit Life, and a few more fees here and there let alone the rules of the subdivision would not let him Park his Big Rig in the front yard and he got sued and that was tacked onto the property as an unpaid lawsuite he lost.

I am telling you this casue I actually read it, of course the paper was making it out to be that the BIG BAD LENDER had really taken advatnage of ole Bob and Betty. iT WILL AND DOES HAPPEN, BETTER KNOW WHAT YOUR SIGNING BEFORE YOU SIGN. It can happen on a house and sure is much easier to happen on a LEASE PURCHASE of a Truck let alone multiple ove r and over lease's.

Do you know how many credit cards you actually have a balance on? The Rates? The amounts you owe? The total of all amounts you owe? According to the paper most do not and this is how America is becomming further behind on not only Credit Cards but now the House they own. Boy sounds just like Washington D.C. does it not?
 

davekc

Senior Moderator
Staff member
Fleet Owner
Gee...poor Bob and Betty. Pays to read the fine print.
Sounds like a case of too much wanting, and not enough doing.
 

LDB

Veteran Expediter
Retired Expediter
I don't know who Bob and Betty are. I presume they are for illustration purposes. In that case I have no problem with them being used as an example as long as things stay civil. This is an important topic that people need to pay attention to. That said, I don't want this thread turned into a joke when it could be very important to people's lives. That's one way posts can be off topic. Let's keep this one on the serious subject that it is since lives can literally be changed by it.
 

dhalltoyo

Veteran Expediter
Leo makes a very good point.

Credit is serious business. No laughing matter if they are taking away your truck on the "hook" for non-payment because your credit debt has exceeded your income.

That said, I spent a great deal of time working with the fleet sales and commercial rep in general, and the lender in particular.

I negotiated with the lenders more intensely than with the product specialist.

The truck was sold at $500 behind invoice. The manufacturer tossed in a $1000 rebate and their Business Choice program for the cargo box upgrade netted another $1200 discount. $2700 below invoice was a decent start.

The loan was secured with "No Money Down" at 3.95% fixed for 0-60 months. The loan also has no pre-pay penalty so when the economy starts rockin' again, and we are all awash in wealth, I can pay off the note early. :cool:
 

pelicn

Veteran Expediter
Not to kick the example of Bob and Betty while they're down....but I don't feel that the gov should come in an "bail out" these people. I'm sorry they could lose a home, but the bottom line is they bought a house that they couldn't afford. Unfortunately, sometimes the learning curve is a steep one.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Not to kick the example of Bob and Betty while they're down....but I don't feel that the gov should come in an "bail out" these people. I'm sorry they could lose a home, but the bottom line is they bought a house that they couldn't afford. Unfortunately, sometimes the learning curve is a steep one.

Exactly. Too many times some become accustom to making a poor decision with the expectation that someone else should bail them out.
 
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