Archive for August, 2009

To anyone who’s used a computer in the last five years, it’s well understood that Google is the dominant player in the Internet search game.  So much so that the company’s name is now  a verb, synonymous with looking up something online.

Google has also extended it’s reach to location-based services like Google Maps, hosted email with Gmail, web browsers with Chrome and a heck of a lot more.

Not to mention that I recently told you how to avoid harassing debt collection calls by using Google Voice.

Now there’s a rumor that Google is going to getting into the mortgage game.  Not directly as a lender, but Google is planning to offer mortgage loan quotes if allegations in a lawsuit recently filed by the website LendingTree are to be believed.  LendingTree is suing its partner company Mortech, claiming that the company is contracting with Google to create a service that will rival LendingTree’s business model.

LendingTree goes so far as to claim that they’ve seen screenshots of Google’s new service, making it more likely that a launch is not too far off into the future.  This isn’t much of a stretch, as Google already offers real estate listings integrated into Google Maps.

Google has been a game-changer in just about every business it’s entered into.  If Google can help consumers get the absolute lowest rate for mortgage loans using their search technology and business clout it will be a welcome tool for purchases and refinances.  These developments will be interesting to watch, and Debtbeat will.

Despite having assets in the hundreds of millions of dollars and earnings potential that most people could only dream about, it turns out that Michael Jackson had the credit score of a panhandler who sang for change in the subway.

In 2007 Jackson had an average credit score of just 563.67.  His Equifax was 592, TransUnion 524 and Experian 575.

That’s about a hundred points lower than the average credit score for any state.  The big culprit for MJ (as it is with most bad scores) is having too many delinquent accounts.

This is a striking example of how even wealthy people mishandle credit.

Regardless of your income, bad credit can force you to pay higher interest rates and can even cost you a job, apartment or the option to bank where you choose.  This is one Mike you don’t want to be like.

TMZ via Consumerist.

According to the Project on Student Debt, 67% of students graduating from four-year colleges and universities had student loan debt in 2008. That's up 27% from 2004.  The average debt levels for graduating seniors with student loans was $23,200.

This can be a crippling level of debt for young workers trying to get a foothold in an economy that is slowly moving towards a jobless recovery.  Couple that with credit card debt (a topic for another time) and the need to pay for rent, transportation, Internet access and food and it's easy to see why student loan bills seem to never get repaid.

Some relief has arrived in the form of the new Income Based Repayment Plan.

Enacted as part of the College Cost Reduction and Access Act of 2007 and put into place on July 1, 2009 it provides for lower payments and forgiveness of loan balances after 25 years of payment. 

By capping student loan payments at a percentage of the borrower's discretionary income (based on borrower's income and family size) it helps recent graduates get established without an unbearable debt load.  The monthly payment amount is adjusted annually, based on changes in annual income and family size.

This program is intended for those who are experiencing financial difficulty, have low income compared with their debt, or who are pursuing a career in public service.  (Those noble individuals can have their loan balances expunged after 10 years.)

Note that this program is only available for federal student loans and not private loans.  To learn more about the IBR visit IBRinfo.