The first thing to realize when it comes to making complicated decisions perfectly is that there is no “perfectly.” Complicated decisions usually have at least one significant obstacle and often it’s more like “one thing after another.”
A few weeks ago, a customer emailed to ask if I would consider writing a column about the pitfalls of credit cards for young people, especially college students. He said he had a feeling his kids weren’t hearing him and he thought they might get the message if they saw it in the paper.
This is not about delayed gratification, although delayed gratification can be a very useful way to build your wealth – especially when the “delay” causes you to re-think an expenditure and ultimately forgo the “gratification”.
Like many local businesses, community bankers tend to be self-effacing. Sure, we’re proud of how we help customers and borrowers. We know we do a good job. We’re just not the type to boast about it.
A customer recently made an appointment to speak with me. A woman in her 70s, she had a home equity line with a big national bank and she’d used it wisely for many years.
Her home equity line was coming up for renewal in 2019 and the interest rate was going to be increasing quite a bit. That concerned her. She had done some research and her grasp of both her situation and her options was excellent.
Most homeowners think it’s going to be pretty easy to qualify for a home equity line of credit – and generally it is. You already have a home. You probably already have qualified for a mortgage. As long as you have equity in your home and you have maintained your credit rating/scores, you should expect to be approved for a home equity line.
A few weeks ago, I came across a particularly annoying click-bait pop-up ad from a well-known online lender. “Do the math (the banks wish you wouldn’t do),” their advertisement said.