(Here is an excerpt from my America's Financial Crisis Solutions Book, which was written in the Spring of 2008.)
When Americans and their businesses are offered graduated payment plans by the Lending Industry it also traditionally results in a substantial increase in consumer borrowing and spending because these types of payment plans enable consumers to have initial payments that are substantially less than what traditional fixed rate payment plans offer. Some of the most creative graduated payment plans in U. S. history were available in virtually every consumer debt level category imaginable between 1998 and 2004. As a result millions and millions of Americans and their businesses borrowed and spent money at record breaking amounts during this time frame. However as we have now learned all of that record breaking amount of consumer borrowing and spending has led to the birth and continuation of record breaking amount levels of payment delinquencies that started in late 2004 and early 2005.
Some of the potential “time bomb” Dangers associated with Graduated Payment Plans depending upon the condition of the U. S. real estate market and overall economy are as follows:
1. Can result in excessive consumer borrowing and spending taking place
2. Can result in irresponsible, immoral, unethical, and illegal Lending Industry business practices
3. Can result in consumers actually paying more for a product, service, or real estate as a result of demand substantially exceeding supply
4. Can result in the values of a product, service, or real estate decreasing as a result of supply substantially exceeding demand
5. Can result in a substantial increase in payment delinquencies
6. Can result in deterioration of the U. S. real estate market and overall economy
7. Can result in consumers not being able to afford their payments when they increase
8. Can result in negative amortization
Very detailed information concerning 1) the real truth about the current devastating condition of the U. S. real estate market and overall economy, 2) reasons why America’s real estate market and overall economic financial crisis began, and most importantly, 3) solutions that will enable America’s real estate market and overall economy to get back on very prosperous tracks again can be found in my America's Financial Crisis Solutions Book. This Book is the first of 5 that comprise my U.S. Economic Crisis Solutions Training System.
Respectfully, Phil Mitsch
America's Leading Economic, Real Estate and Lending Crisis Solutions Expert & Trainer
Real Estate Industry's All Time Top Producing Residential Realtor
Cherry Hill, New Jersey
856-665-6569
http://PhilMitschForAmerica.com
philmitsch@verizon.net
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