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Опубликовано 22 Ноября 2016, 14:02:16
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For many millions of Americans, who live "paycheck to paycheck," the only thing defining their status as Middle Class, and differentiating them from the so-called "Working Class" is their ownership of a home, and the equity accumulated in it. Graham points out that that equity is being eroded by two factors: the first is the threat of declining home values, and the second is the propensity of homeowners, over the last few years, to refinance their homes or take out home equity loans at very low adjustable rates to pay off high interest credit card debt. Now, Graham says, the equity is at risk, because of the softening in the market, the fact that the adjustable rates have risen consistently (and are expected to continue to do so), and the reality that much of it has already been borrowed out to pay off credit card debt, and for other purposes Steven Hauschka Seahawks Jersey , such as home improvement.

Coupled with the risk of declining home equity, Graham argues, is an enormous, and, to date, largely invisible swinging of the pendulum toward the credit card issuers, and their sponsoring banks. After years of intense lobbying (on both sides of the political aisle) by that constituency, the bankruptcy laws have been extensively rewritten, so as to restrict, severely, access to certain kinds of bankruptcy relief, especially for those who, while certainly not well-off, earn above their respective state's median income. "Credit card holders, of course, had no lobbyists on retainer," says Graham. At the same time, the same financial institutions have found creative ways Jeremy Lane Seahawks Jersey , by re-domiciling themselves in states hungry for their business, such as South Dakota, to avoid the restrictions of usury laws. So now, observes Graham, it is not unusual for your credit card interest rate, if you are carrying a balance, to rise suddenly from that 5% "teaser rate," to an unprecedented 32%, in the event of a default. "And worse," Graham points out, "a 'default' doesn't have to be non-payment. Your cardholder agreement, which you likely have not read, allows periodic review of debt to income ratios, and problems with other creditors as a justification to change rates on almost no notice." Add to that the changes in banking procedures, by which banks have restructured their "minimum payment" requirements on cardholder.
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