Here are 10 Tips about any type of “Graduated Payment Loan” that every consumer worldwide should be aware of.
Graduated Payment Loans enable borrowers to start out with a much lower monthly payment that becomes a higher monthly payment at some point in time. This increases consumer purchasing power which will lead to a significant increase in borrowing which can then lead to a short term economic boom for any nation.
Graduated Payment Loans can have “negative amortization” associated with them. This means principle balances actually increase instead of decreasing which can jeopardize a borrower’s future financial security.
Graduated Payment Loans can increase “payment delinquencies” because many borrowers cannot afford the higher monthly payments when they are increased.
Graduated Payment Loans can lead to “lower credit scores” when borrowers are unable to make their monthly payments when they increase.
Graduated Payment Loans can lead to an increase in “collection lawsuits.”
Graduated Payment Loans can lead to an increase in “lender modifications.”
Graduated Payment Loans can lead to an increase in “personal and business bankruptcies.”
Graduated Payment Loans can lead to an increase in “lending and insurance industry losses.”
Graduated Payment Loans can lead to an increase in “lending and insurance industry bailout requests from government.”
Graduated Payment Loans can lead to an increase in government bailouts which require government to borrow and print more money and/or decrease spending. This can then lead to an increase in federal deficit which can then lead to an increase in taxes which can then lead to an increase in consumer expenses which can then lead to a decrease in consumer disposable income which can then lead to massive economic deterioration for any nation.
I will be going into more detail about these 10 Tips in future articles. Remember to look for my “Lending Tips For November 2013” article in about four weeks.
Agents’ Note: Phil Mitsch is America’s leading economic recovery, real estate, lending and motivational coach. He is also the real estate industry’s all time, top producing residential Realtor. His 1) biography, 2) testimonials, 3) seminar topics, 4) books, 5) videos, 6) audios, 7) economic recovery tips, 8) real estate tips, 9) lending tips and 10) motivational tips can be found at www.PhilMitschForAmerica.com. For further information, contact Phil Mitsch Enterprises in Cherry Hill, New Jersey at 856-665-6569, on Twitter at @philmitsch, or by email to firstname.lastname@example.org.