Cashback Mobile Contracts

Grandma and Gramps are not doing well. In fact, the state of finances for the elderly is a shambles.

Let's start with falling home prices. The AARP found that between 2007 and 2011, "3.5 million loans held by people age 50 or older were underwater, 600,000 were in foreclosure, and another 625,000 were 90 or more days delinquent." And that doesn't include the 1.5 million seniors who lost their homes during that period.
Surprisingly, another source of distress for seniors is student loans. A shocking 2.2 million Americans age 60 or older have student loan debt, with an average balance of $19,521, according to data from the Federal Reserve Bank of New York.

When the going got tough, Grandma and Grandpa did what those of any age do -- turned to credit cards. But in their case, credit card debt has been a major factor in driving them to declare bankruptcy. Between 1991 and 2007, the number of people ages 65 to 74 seeking bankruptcy rose 178 percent. Even worse, among those 75 and older, the number seeking bankruptcy was up 567 percent!

In a paper analyzing the data from a Consumer Bankruptcy Project, law professor John Pottow writes that "the median elder debtor in bankruptcy carries fifty percent more credit card debt than the median younger filer."

And to top it all off, these folks have little to no savings: Two-thirds of those age 75 or older have absolutely nothing money left in their retirement accounts, and have little hope of finding a decent job to help them make ends meet.

So What Happens When Grandma's Gone?

While those elderly individuals who do file for bankruptcy won't leave behind massive debts, those who remain committed to paying down their bills -- but die before they successfully do so -- can place a burden on their heirs.

Luckily, most kinds of debt cannot legally be transferred to a deceased person's heirs. But that doesn't mean you're entirely immune to Grandma's bills.

Let's take a look at what happens to the major kinds of debt when an elderly relative passes on.

1. Mortgage. A mortgage is a secured loan: Simply put, there is collateral (the property) that guarantees the balance. As such, mortgages are not forgiven when a borrower passes away. They passes on to the deceased's estate. If the estate has enough cash to cover the remaining mortgage balance, it can be used to pay off the loan and the heirs can take ownership of the house. Or, you can assume the mortgage, i.e., put it in your name or leave it in the original owner's name, but continue to pay it normally. Or you can refinance. And of course, there's always the option of selling the house to repay the remaining balance of the loan.

But if the mortgage is upside down, you're not stuck; there are ways to walk away from a bad mortgage left to you by a relative.

2. Car loan. Car loans, too, are a form of secured debt. As such, an heir can, with consent of the lender, assume a car loan, or refinance it. Otherwise, you'll either need to use the estate's cash to pay off the car loan so the heirs can take ownership of the vehicle, or the car will need to be sold to repay the remainder of the debt.

3. Personal loan. Although theses debts are usually unsecured -- i.e., there was no collateral put up against the loan -- they do still pass on to the estate. The executor's primary responsibility is to use the estate's assets to satisfy the deceased's remaining debts. If the assets cannot completely cover all the remaining debts, the executor usually divides up the money, and pays each debtor an equal percentage of what they are owed.

4. Student loan. Federally insured student loans are forgiven upon death. No repayment by heirs is necessary -- simply contact the lender or loan servicer and send them a copy of the death certificate (and possibly wait quite a bit for the paperwork to be complete, with involving the government and all). Unfortunately, private student loan debt is not forgiven and falls to the estate similar to those other loans mentioned above.

5. Credit card. Like personal loans, if there are enough assets remaining in the estate to cover the debt, it must be applied to outstanding credit card debt. If there is no remaining money, the credit card company usually writes off the debt.

Of Course, It's Not Always That Simple

If any of the debt was incurred with a cosigner, the burden of debt typically falls entirely onto the other party who signed the loan.

What's more, different states treat debt differently. Certain states are community property states; in these, any assets accumulated during the duration of a marriage are considered joint assets and, in some cases, so are debts -- regardless of whether both parties signed the loan. Meaning if your estranged -- but not officially divorced -- spouse has an outstanding loan from the time you were married, it could still fall back onto you, regardless of your current relationship with them.

Also, not all of a deceased person's assets become part of the estate. IRAs, 401(k)s, brokerage accounts -- even life insurance payouts -- all pass through, untouched, to the designated beneficiaries. These amounts, therefore, are not taken into consideration when determining whether or not an estate has enough funds to satisfy their debts.

So What Can and Should You Do?

First, if you are the child or grandchild of someone whose finances seem to be in trouble, it's important that you discuss it with them. It's not always easy, but being open, honest, and working together to craft a plan now can save you countless hours of stress later -- and provide your loved one with the assurance that when they pass on, they aren't leaving you with an unpleasant burden.

Second, remind co-signers about any loans they are still listed on. It's also important to go through and update beneficiaries on those accounts that do directly pass through without becoming part of the estate.

Lastly, if you're over the age of 50, think twice about incurring new debt. It should be a last resort, an emergency-only option -- both for your own peace of mind as well as that of your loved ones.

Making the right financial decisions today makes a world of difference in your golden years - to both you and your loved ones. But most people aren't prepared. Don't make the same mistakes as the masses. Learn about The Shocking Can't-Miss Truth About Your Retirement in this special free report from The Motley Fool.

Cashback Mobile Contracts

Automatic Cashback Deals Mobile Phones

Americans have set another record. It's not a good one, though.

U.S. consumer debt hit an all-time high in October, with borrowing rising by $14.2 billion over September levels, to total $2.75 trillion. But there's a little silver lining in the news: Most of the gain -- 76 percent of it -- came from auto loans and student loans. Only 24 percent reflected a rise in credit card borrowing. That's worth noting, because all debt is not equal.

The bright side
Some debt is not only good, but critical. Without the ability to take out mortgages, for example, most people couldn't afford to buy their own homes. Without student loans, many couldn't afford the educations that can help them earn more throughout their lives. Even car loans have their place.

Better still, these types of loans typically carry relatively low interest rates, at least compared with credit cards. In recent years, of course, interest rates have been near record lows, taking much of the sting out of some of these debts. Consider that the prime rate, which influences many interest rates, has recently been 3.25 percent, but was as high as 11.5 percent in 1989, 13 percent in 1984, and 20 percent in 1980.

The dark side
Then there are other kinds of debt that are more problematic. Even in our current environment of ultra-low interest rates, when a 30-year fixed-rate mortgage features rates of 3.5 percent, the average interest rate on credit cards is about 15 percent. Those mired deep in credit card debt are fighting a tough battle as they try to pay off what they owe while also paying steep sums in interest. A $20,000 debt that's charged 15 percent in interest will eat up a whopping $3,000 annually.

That's the problem with high-interest rate debt: If you don't manage to keep up with your payments, it can snowball, making a bad situation much worse.

So as you consider your overall debt picture, be mindful of taking on these other troublesome kinds of debt:

Borrowing from a 401(k) account is one way to get your hands on money that you want or need, but you can be short-changing your future. All the time that that money is out of the account, it's not growing for you.
Taking out a home equity loan can also be a regrettable move, especially if you use the money to pay off credit card debt. Yes, you can end up with lower rates and payments, but the loan might be stretched out so long that you still end up paying too much. And while credit card debt is unsecured, home equity loans are secured by... your home.
Investors with brokerage accounts can borrow money "on margin" and invest with it. The upside is that you get to invest more money overall. The downside is that you pay for the privilege, and your gains have to exceed your interest cost in order for you to come out ahead. Using margin amplifies your gains, but also your losses. At the Charles Schwab brokerage, recent margin interest rates were 8.5 percent for those with a debit balance of up to $25,000, and 8 percent for balances between $25,000 and $50,000. Considering that the average long-term return for the U.S. stock market has been around 9 percent to 10 percent, with many periods below that, investing on margin is clearly risky.

As you go through life, borrowing now and then in order to buy a home or car, go to school, fix up your house, or just buy a new TV, be smart about it. Avoid all high-interest rate debt, and pay any you have pronto. And only take on low-rate debt when it really makes sense and you can afford it.

Automatic Cashback Deals Mobile Phones

Cibc Car Loan

Want a cheap car loan? How does free sound?

Believe it or not, more and more car buyers are being offered 0% interest loans, many with terms as long as 60 months.

Thanks to record-low interest rates, the financing arms of automakers like Toyota (TM) and Ford (F) are able to offer 0% financing to some buyers of selected models, and cheap financing to almost everyone else -- even to folks with less-than-perfect credit.

A not-so-surprising result: Auto sales in the U.S. have been on the rise.

So-So Economy Not Stopping Car Buyers

While auto sales still haven't quite recovered to the levels that were routine before the 2008 economic crisis, new car and truck sales have continued to rise, despite an economy that's still just so-so.

Through August, U.S. sales of "light vehicles" -- cars, SUVs, and pickups -- were up 19.9% over last year. Some automakers have seen even bigger gains: Volkswagen's (VLKAY) sales were up almost 37%, Chrysler's almost 26%.

In fact, the pace of new-vehicle sales is at its highest level since the U.S. government's "Cash for Clunkers" program drove a sharp (but temporary) rise in the summer of 2009.

What's driving those fat gains? Overall slow-but-sure improvements in the economy have surely helped, but cheap -- and easier -- financing has made a big difference.

Easy Credit

It's getting somewhat easier to get loans of all kinds, but the availability of auto loans is improving faster than in some other categories of financing, like mortgages. That's because auto loans tend to have a lower default rate: People who depend on their cars to get to work make an extra effort to stay current on payments.

Most of the major automakers own financing companies. And those "captive financing" operations have made low-cost loans a staple of many car companies' "incentive" offerings. Incentives, which include both cheap-financing and the "cash back" deals often advertised on TV, are typically used by car manufacturers to boost sales of slower-moving models or adjust a new model's pricing relative to its competitors.

On top of offering low-cost loans, those financing operations are often more willing than your local bank to lend to folks with less-than-perfect credit.

Sales of new vehicles to buyers with "Tier B" credit, the industry's term for those with credit scores between 650 and 679, have risen 26% this year, according to a Bloomberg report.

A Good Time to Take Advantage

Here's what it means for consumers: If you need a new car, and you're not planning on paying cash for it, the low cost of financing means that this is a good time to buy.

For instance, on a $25,000 60-month loan, the difference between a 4.5% interest rate and no interest at all is about $50 a month, or roughly $3,000 over the course of the loan.

Not all automakers are offering 0% financing, but more and more are: In addition to Toyota and Ford, Chrysler, General Motors (GM), and Nissan (NSANY) have had 0% offers on some models recently, according to Edmunds.

Of course, not everybody will qualify for 0% financing, and even the automakers that offer it are only making it available on selected models. But no matter what kind of car or truck you're buying, financing is cheaper -- and for most, easier to get -- than it has been in a long time.

Cibc Car Loan

Fast Cash Loans Canada

WASHINGTON (AP) - U.S. consumers borrowed more in November to buy cars and attend school, but stayed cautious with their credit cards.

The Federal Reserve said Tuesday that consumers increased their borrowing in November by $16 billion from October to a seasonally adjusted record of $2.77 trillion.

Borrowing that covers autos and student loans increased $15.2 billion. A category that measures credit card debt rose just $817 million.

The sharp difference in the borrowing gains illustrates a broader trend that began after the Great Recession. Four years ago, Americans carried $1.03 trillion in credit card debt, an all-time high. In November, that figure was 16.5 percent lower.

At the same time, student loan debt has increased dramatically. The category that includes auto and student loans is 22.8 percent higher than in July 2008. Many Americans who have lost jobs have gone back to school to get training for new careers.

The November increase also reflected further gains in auto sales, which grew 13.4 percent in 2012 to top 14 million units for the first time in five years. The need to replace vehicles destroyed by Superstorm Sandy may have also contributed to the gain.

Consumer spending rebounded in November, helped by lower gas prices and solid job growth that carried over into December. Employers added 155,000 jobs in December and 161,000 in November.

Steady hiring may have encouraged consumers to keep borrowing and spending, despite tense negotiations to resolve the fiscal cliff.

Still, some analysts expect borrowing and spending may have slowed in December as those budget talks in Washington intensified. Congress and the White House didn't reach a deal to avert sharp tax increases until Jan. 1. And they delayed tougher decisions about spending cuts for another two months.

Consumer confidence fell in both November and December, which may slow spending in December. Consumer spending drives roughly 70 percent of economic activity.

Fast Cash Loans Canada

Scotiabank Car Loan

That car that's supposed to provide you with the freedom to get you where you want to go may also be one of the many chains tying you down to a job you'd rather ditch. That's because -- over the course of a lifetime -- the average person will spend more than three years at work just to pay for their various sets of wheels.

The folks at eBay Deals recently released a "Trading Time" calculator that lets you figure out how long you have to work to pay for various expenses. It's an eye-opener.

Over a 50-year working lifetime, the typical person will work 157 weeks to generate the cash needed to pay for his or her cars. Then, add in another 50 weeks of work to cover car insurance. Those figures are based on the weekly median gross income. Yours may be higher or lower, of course.

If that doesn't seem like a lot to you, then think about this: You work even longer to pay for your vehicles because you need to figure in taxes and the interest on your car loans. And don't forget all the time in that vehicle commuting or shuttling your kids around.

According to the Trading Time calculator, other major expenses that keep you chained to your desk may include shoes (17 weeks), phone bills (60 weeks) and even toilet paper (two weeks).

Whether you love your job, hate it or or fall somewhere in between, it's helpful to think about the things you spend money on in terms of the amount of time you have to spend working to pay for them. Only you can decide what's really worth it.

Can You Get Back Some of Your Time?

Of course you may have no choice but to drive, and in that case, you may want to look for ways to try to reduce your costs. For example, can you drive a slightly used car instead of a new one? Keep your vehicle longer? Settle for a more economical model?

Another way to cut costs is to improve your credit. With a better credit score, you will qualify for a lower interest rate, which can mean significant savings over the life of the loan. You can see your credit scores for free at Credit.com to determine whether your credit is good. Ideally, you want to review it at least a month before you plan to shop for a vehicle in order to address any issues you uncover. (Give yourself more lead time if your credit isn't great. Here's a guide to help you rebuild your credit. )

Here's an example of the savings you may achieve by boosting your credit. As of June 4, the lowest quoted rate for a $20,000 50-month auto loan with excellent credit on Credit.com is 1.99 percent. That translates into a monthly payment of $411. But for someone with poor credit, the rate jumps to 14.99 percent or a monthly payment of $540.

Scotiabank Car Loan

Need Cash Now Canada

Americans have set another record. It's not a good one, though.

U.S. consumer debt hit an all-time high in October, with borrowing rising by $14.2 billion over September levels, to total $2.75 trillion. But there's a little silver lining in the news: Most of the gain -- 76 percent of it -- came from auto loans and student loans. Only 24 percent reflected a rise in credit card borrowing. That's worth noting, because all debt is not equal.

The bright side
Some debt is not only good, but critical. Without the ability to take out mortgages, for example, most people couldn't afford to buy their own homes. Without student loans, many couldn't afford the educations that can help them earn more throughout their lives. Even car loans have their place.

Better still, these types of loans typically carry relatively low interest rates, at least compared with credit cards. In recent years, of course, interest rates have been near record lows, taking much of the sting out of some of these debts. Consider that the prime rate, which influences many interest rates, has recently been 3.25 percent, but was as high as 11.5 percent in 1989, 13 percent in 1984, and 20 percent in 1980.

The dark side
Then there are other kinds of debt that are more problematic. Even in our current environment of ultra-low interest rates, when a 30-year fixed-rate mortgage features rates of 3.5 percent, the average interest rate on credit cards is about 15 percent. Those mired deep in credit card debt are fighting a tough battle as they try to pay off what they owe while also paying steep sums in interest. A $20,000 debt that's charged 15 percent in interest will eat up a whopping $3,000 annually.

That's the problem with high-interest rate debt: If you don't manage to keep up with your payments, it can snowball, making a bad situation much worse.

So as you consider your overall debt picture, be mindful of taking on these other troublesome kinds of debt:

Borrowing from a 401(k) account is one way to get your hands on money that you want or need, but you can be short-changing your future. All the time that that money is out of the account, it's not growing for you.
Taking out a home equity loan can also be a regrettable move, especially if you use the money to pay off credit card debt. Yes, you can end up with lower rates and payments, but the loan might be stretched out so long that you still end up paying too much. And while credit card debt is unsecured, home equity loans are secured by... your home.
Investors with brokerage accounts can borrow money "on margin" and invest with it. The upside is that you get to invest more money overall. The downside is that you pay for the privilege, and your gains have to exceed your interest cost in order for you to come out ahead. Using margin amplifies your gains, but also your losses. At the Charles Schwab brokerage, recent margin interest rates were 8.5 percent for those with a debit balance of up to $25,000, and 8 percent for balances between $25,000 and $50,000. Considering that the average long-term return for the U.S. stock market has been around 9 percent to 10 percent, with many periods below that, investing on margin is clearly risky.

As you go through life, borrowing now and then in order to buy a home or car, go to school, fix up your house, or just buy a new TV, be smart about it. Avoid all high-interest rate debt, and pay any you have pronto. And only take on low-rate debt when it really makes sense and you can afford it.

Need Cash Now Canada

Royal Bank Careers

WASHINGTON (AP) - U.S. consumers borrowed more in November to buy cars and attend school, but stayed cautious with their credit cards.

The Federal Reserve said Tuesday that consumers increased their borrowing in November by $16 billion from October to a seasonally adjusted record of $2.77 trillion.

Borrowing that covers autos and student loans increased $15.2 billion. A category that measures credit card debt rose just $817 million.

The sharp difference in the borrowing gains illustrates a broader trend that began after the Great Recession. Four years ago, Americans carried $1.03 trillion in credit card debt, an all-time high. In November, that figure was 16.5 percent lower.

At the same time, student loan debt has increased dramatically. The category that includes auto and student loans is 22.8 percent higher than in July 2008. Many Americans who have lost jobs have gone back to school to get training for new careers.

The November increase also reflected further gains in auto sales, which grew 13.4 percent in 2012 to top 14 million units for the first time in five years. The need to replace vehicles destroyed by Superstorm Sandy may have also contributed to the gain.

Consumer spending rebounded in November, helped by lower gas prices and solid job growth that carried over into December. Employers added 155,000 jobs in December and 161,000 in November.

Steady hiring may have encouraged consumers to keep borrowing and spending, despite tense negotiations to resolve the fiscal cliff.

Still, some analysts expect borrowing and spending may have slowed in December as those budget talks in Washington intensified. Congress and the White House didn't reach a deal to avert sharp tax increases until Jan. 1. And they delayed tougher decisions about spending cuts for another two months.

Consumer confidence fell in both November and December, which may slow spending in December. Consumer spending drives roughly 70 percent of economic activity.

Royal Bank Careers