After years of living beyond their means, U.S. consumers hit a hard wall of reality in the last 2-and-one-half years. Hurt by massive job cuts and a free fall in home prices, many stopped paying their credit card bills and defaulted on their mortgages.
ow, while consumers may not be rushing out to go shopping yet, there are signs that they are making more of an effort to catch up with their debt payments. Recent third-quarter results from banks that write a majority of the USA's loans show fewer consumers have been late on their credit card and mortgage payments.
Bank of America saw a $146 million drop in home equity loans where customers were late in payments by more than 90 days in the third quarter. "(It's) the first decrease since the start of this credit cycle," says Chief Financial Officer Joe Price. Similarly, at Wells Fargo, the loss rate on its credit card portfolio fell to 10.9 percent from 11.6 percent of loans.
The number of people filing for jobless claims has dwindled in recent months, and signs of housing prices stabilizing are likely giving consumers some hope, analysts say. However, Sara Johnson, an economist at IHS Global Insight, doesn't expect things to get better until 2010, when she predicts the unemployment rate will peak at over 10 percent, vs. 9.8 percent now.
Still, she admits there are favorable signs. "We're at an inflection point - delinquencies are a measure of households' financial stress and perhaps the worst is over," Johnson says.
All the banks continued to record large loan losses and have set aside billions of dollars for more unpaid bills in the months ahead. But executives take comfort in the fact that those numbers are starting to level off.
"There seems to be stability in the environment in terms of consumer spending ... that could be forming the base of a recovery," says Jamie Dimon, CEO of JPMorgan Chase, where loan payments late by more than 90 days in the third quarter were down to 2.8 percent, compared with 3.3 percent of total loans in the second quarter.
Brian Foley, an analyst at Goldman Sachs, says that a slowing in the unemployment rate holds the key to stabilization. "As new jobless claims start to slow, there will be fewer people with payment issues," he says.
The stock market's run-up since March also is helping lift spirits, especially some of the more affluent consumers, who could be the first to open their wallets.
American Express, a barometer of higher-end household spending, saw a drop in its 30-day delinquency rate to 4.1 percent from 4.4 percent. "The trends in card member spending are encouraging, and there are signs that the recession may be approaching an end," CEO Kenneth Chenault says.
Monday, November 2, 2009
Saturday, October 31, 2009
The big questions over the credit card crackdown
The Government is proposing action over the credit card industry - which generates multi-million pound profits for the banks every year, come economic boom or bust - with the aim of giving consumers a fairer deal. But what will it mean for regular users of credit cards - like Nick Fisher - who struggle to clear their debts?
Why is the Government getting tough on credit card issuers?
It believes that too many consumers are being encouraged to build credit card debt. And once in debt, many card issuers make it difficult for these borrowers to get out of it by heaping extra charges on them. They are also encouraging customers to accumulate debt by allowing them to pay off a minuscule amount of their outstanding balance every month. In some instances, indebted consumers are offered higher spending limits even though logic says this is the last thing they need.
Although card debt has fallen in recent years, it still stands at a whopping £54billion, with 32 million people holding 73.5 million cards in the UK. Worryingly, it is on the increase again as consumers find it difficult to obtain alternative forms of borrowing such as unsecured loans. Three out of every ten cardholders fail to clear their borrowings in full every month, resulting in heavy interest charges.
But why is the Government acting now when credit card issuers have been doing this for ages?
Good question. It should have acted years ago. In its defence, the Government says it is minded to legislate now because consumers are coming under greater financial pressure as a result of the economic downturn. But cynics argue that Labour is playing politics ahead of an election, hoping consumers will think it is finally cracking down on an out-of-control financial services industry when in reality little will change and there is no guarantee of legislation.
What are the main proposals?
There are five, but the main one is requiring card issuers to increase the minimum sum a borrower must repay every month. Minimum repayments are typically set at two per cent of the outstanding debt.
The Government says this should rise to five per cent and would go some way to stop some borrowers taking years to clear relatively small amounts of debt, in the process incurring horrendous charges. About 11 per cent of card issuers make only the minimum monthly payment.
To illustrate this, someone with a Smile credit card who spends £1,000 would take just over 37 years to clear the debt if they made the minimum repayment (the greater of two per cent or £5). But if they repaid £50 per month, they would clear the debt in 25 months. This assumes an interest rate of 20.9 per cent.
And the other proposals?
First, to stop card issuers applying a cardholder's repayments to the cheapest outstanding debt, thereby leaving the most expensive to accrue sky-high interest charges. Although there are honourable exceptions, such as Saga and Nationwide, most providers are guilty of this.
For example, a borrower may use a card to obtain cash, which attracts higher interest charges than uncleared debt resulting from spending and usually incurs interest penalties from the day the cash is obtained. When monthly repayments go to pay off a borrower's outstanding debt, these cash amounts remain the last to be cleared.
Second, the Government is thinking about controlling the way card issuers increase borrowers' credit limits. About six million customers a year get an unsolicited increase in their limit. For some this is a temptation too far, resulting in them simply spending up to their new allowance.
Third, the Government wants to act against card issuers who increase interest charges on outstanding debt without reason. Card providers have been increasingly guilty of this in the past year as they have assessed the credit worthiness of their customers and applied higher interest charges to those it feels represent a higher risk.
Finally, the Government would like to see card issuers provide an annual statement to customers detailing the interest they have paid over the year, plus any other charges. As well as concentrating the minds of borrowers, the Government believes this may encourage some borrowers to shop around for cheaper deals.
What about those credit card cheques they keep sending?
Card users continue to receive these unsolicited. But they carry immediate interest penalties and will soon be banned by legislation passing through Parliament.
How have these proposals been received?
As expected, there has been a mixed welcome, but most consumer groups support the proposals. Phil Jones, personal finance campaigner of consumer group Which?, says: 'We think it's wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible. The sooner these practices are stamped out, the better.'
Doctor Neil Stewart, psychology researcher at the University of Warwick, says that the mere presence of a minimum payment is enough to reduce the amount that cardholders feel they can pay off.
He says minimum payments act as an 'anchor'. As a result, he says Government moves to increase minimums is welcome. But support is not universal. Some debt groups fear that increased minimum repayments will be a step too far for some overstretched borrowers, tipping them into bankruptcy. One way round this is for the higher minimums to apply to new card agreements.
Will card interest rates come down as a result of these proposals?
With the base rate at 0.5 per cent it is a scandal that most card interest rates are around 17 to 19 per cent. Rates for store cards are even higher at 20 per cent plus.
But perversely, one likely outcome of this review is that headline interest rates will become more expensive as card issuers frantically attempt to make up for lost revenues. Indeed, some may also reintroduce annual fees.
When will all this happen?
These are only proposals. But if they are pushed through, it is likely that they will not come into force until the end of next year at the earliest if at all, given that a General Election could put a spanner in the works.
As a cardholder, can I have a say in all this? Or has the Government made up its mind?
For once, the Government is in listening mode. So if you have suggestions, write to: Christina Anderson, Consumer and Competition Policy Directorate, Department for Business, Innovation & Skills, 1 Victoria Street, London SW1H OET. Submissions can be made in writing, by fax (0207 215 0357) or by email (cscr@bis.gsi.gov.uk). The deadline is January 19, 2010.
'In the past, I've been caught out by using my cards to obtain cash at an ATM,' says Nick, a trainer and assessor for a company specialising in training people to obtain national vocational qualifications.
Nick, who in his spare time is a disc jockey and percussionist, now uses only his Nationwide credit card and one of the reasons for this is because the building society always applies repayments first to the more expensive card debt - something that few card issuers do. The Government is recommending that all card issuers follow Nationwide's lead.
Nick says: 'Two thumbs up to the Government for looking at the unfair way most card companies apply repayments to outstanding debt.'
Why is the Government getting tough on credit card issuers?
It believes that too many consumers are being encouraged to build credit card debt. And once in debt, many card issuers make it difficult for these borrowers to get out of it by heaping extra charges on them. They are also encouraging customers to accumulate debt by allowing them to pay off a minuscule amount of their outstanding balance every month. In some instances, indebted consumers are offered higher spending limits even though logic says this is the last thing they need.
Although card debt has fallen in recent years, it still stands at a whopping £54billion, with 32 million people holding 73.5 million cards in the UK. Worryingly, it is on the increase again as consumers find it difficult to obtain alternative forms of borrowing such as unsecured loans. Three out of every ten cardholders fail to clear their borrowings in full every month, resulting in heavy interest charges.
Thumbs up: Consumer Nick Fisher welcomes the new proposals to change how credit card firms operate
Good question. It should have acted years ago. In its defence, the Government says it is minded to legislate now because consumers are coming under greater financial pressure as a result of the economic downturn. But cynics argue that Labour is playing politics ahead of an election, hoping consumers will think it is finally cracking down on an out-of-control financial services industry when in reality little will change and there is no guarantee of legislation.
What are the main proposals?
There are five, but the main one is requiring card issuers to increase the minimum sum a borrower must repay every month. Minimum repayments are typically set at two per cent of the outstanding debt.
The Government says this should rise to five per cent and would go some way to stop some borrowers taking years to clear relatively small amounts of debt, in the process incurring horrendous charges. About 11 per cent of card issuers make only the minimum monthly payment.
To illustrate this, someone with a Smile credit card who spends £1,000 would take just over 37 years to clear the debt if they made the minimum repayment (the greater of two per cent or £5). But if they repaid £50 per month, they would clear the debt in 25 months. This assumes an interest rate of 20.9 per cent.
And the other proposals?
First, to stop card issuers applying a cardholder's repayments to the cheapest outstanding debt, thereby leaving the most expensive to accrue sky-high interest charges. Although there are honourable exceptions, such as Saga and Nationwide, most providers are guilty of this.
For example, a borrower may use a card to obtain cash, which attracts higher interest charges than uncleared debt resulting from spending and usually incurs interest penalties from the day the cash is obtained. When monthly repayments go to pay off a borrower's outstanding debt, these cash amounts remain the last to be cleared.
Second, the Government is thinking about controlling the way card issuers increase borrowers' credit limits. About six million customers a year get an unsolicited increase in their limit. For some this is a temptation too far, resulting in them simply spending up to their new allowance.
Third, the Government wants to act against card issuers who increase interest charges on outstanding debt without reason. Card providers have been increasingly guilty of this in the past year as they have assessed the credit worthiness of their customers and applied higher interest charges to those it feels represent a higher risk.
Finally, the Government would like to see card issuers provide an annual statement to customers detailing the interest they have paid over the year, plus any other charges. As well as concentrating the minds of borrowers, the Government believes this may encourage some borrowers to shop around for cheaper deals.
What about those credit card cheques they keep sending?
Card users continue to receive these unsolicited. But they carry immediate interest penalties and will soon be banned by legislation passing through Parliament.
How have these proposals been received?
As expected, there has been a mixed welcome, but most consumer groups support the proposals. Phil Jones, personal finance campaigner of consumer group Which?, says: 'We think it's wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible. The sooner these practices are stamped out, the better.'
Doctor Neil Stewart, psychology researcher at the University of Warwick, says that the mere presence of a minimum payment is enough to reduce the amount that cardholders feel they can pay off.
He says minimum payments act as an 'anchor'. As a result, he says Government moves to increase minimums is welcome. But support is not universal. Some debt groups fear that increased minimum repayments will be a step too far for some overstretched borrowers, tipping them into bankruptcy. One way round this is for the higher minimums to apply to new card agreements.
Will card interest rates come down as a result of these proposals?
With the base rate at 0.5 per cent it is a scandal that most card interest rates are around 17 to 19 per cent. Rates for store cards are even higher at 20 per cent plus.
But perversely, one likely outcome of this review is that headline interest rates will become more expensive as card issuers frantically attempt to make up for lost revenues. Indeed, some may also reintroduce annual fees.
When will all this happen?
These are only proposals. But if they are pushed through, it is likely that they will not come into force until the end of next year at the earliest if at all, given that a General Election could put a spanner in the works.
As a cardholder, can I have a say in all this? Or has the Government made up its mind?
For once, the Government is in listening mode. So if you have suggestions, write to: Christina Anderson, Consumer and Competition Policy Directorate, Department for Business, Innovation & Skills, 1 Victoria Street, London SW1H OET. Submissions can be made in writing, by fax (0207 215 0357) or by email (cscr@bis.gsi.gov.uk). The deadline is January 19, 2010.
Cash habit ended up as a debt of £5,000
Nick Fisher will certainly welcome reform on credit cards. The 29-year-old, who is single and lives in Swindon, had built up £5,000 of debt on several credit cards with Barclays, HSBC, MBNA and Nationwide. Only recently, helped by finding full-time employment, has he managed to get his card debts down to under £500.'In the past, I've been caught out by using my cards to obtain cash at an ATM,' says Nick, a trainer and assessor for a company specialising in training people to obtain national vocational qualifications.
Nick, who in his spare time is a disc jockey and percussionist, now uses only his Nationwide credit card and one of the reasons for this is because the building society always applies repayments first to the more expensive card debt - something that few card issuers do. The Government is recommending that all card issuers follow Nationwide's lead.
Nick says: 'Two thumbs up to the Government for looking at the unfair way most card companies apply repayments to outstanding debt.'
Friday, October 30, 2009
personal loan - debt
A personal loan is a great opportunity to have the funds to consolidate your debt, take a college course, repair your car, or even take a vacation. Personal loans can be secured or unsecured. Secured loans are much riskier because they involve providing the lender with collateral to ensure repayment of the loan. If you fail to meet that repayment, the lender will legally own your property, vehicle, or what ever asset you used to secure the loan.
Personal loans offer plenty of opportunity for individuals to improve their overall financial situation if the funds are used in conjunction with good money management skills. However, we all know things take place in life that we have no control over including death of a income source for our household, losing employment, or medical issues. These circumstances can all affect our ability to repay a personal loan. If that loan is secured, then you will lose your asset tied to it as well. To protect yourself from such horrible possibilities, consider purchasing personal loan insurance.
Personal loan insurance is the best protection you can have for repayment when the plan you outlined to cover the loan develops unexpected bumps in the road. The cost of such insurance varies, and is generally determined by the outstanding balance of your personal loan. The type of personal loan insurance coverage you choose will also affect the premium. However, this insurance can offer peace of mind for borrowers, especially those who have a secured personal loan.
There are three types of personal loan insurance coverage to choose from. The specific dollar amounts of coverage will depend on the laws in your State and the dollar amount of your loan. It is important to discuss personal loan insurance with any lender you are considering pursuing a personal loan with.
Personal loan death insurance will pay up to a certain dollar amount in the event of the death of one of the individuals on the loan. In the event that the personal loan only had one persons name on it, then the loan balance will be paid in full up to the maximum dollar amount. Most personal loans only have a maximum loan amount of £15,000 however it is not uncommon for individuals to take out more than one personal loan.
Disability Plus personal loan coverage is the coverage most often purchased for personal loan protection. It will pay your monthly personal loan payments up to a certain dollar amount. In addition you will receive a cash payment of a percentage of your loan amount each month to help you with the cost of living expenses.
Involuntary Unemployment Coverage Insurance for personal loans is very popular. This type of insurance will pay up to a certain dollar amount per month in personal loan payments for up to a set amount of months.
Personal loans are a great financial tool when used properly. Personal loan insurance is a very responsible invest to help ensure your payments will be made regardless of medical issues, unemployment, or in the event of death. The insurance is especially important for individuals with a secured personal loan. Not only with their credit be negatively impacted, but they will lose valuable assets that are tied to their personal loan.
Personal loans offer plenty of opportunity for individuals to improve their overall financial situation if the funds are used in conjunction with good money management skills. However, we all know things take place in life that we have no control over including death of a income source for our household, losing employment, or medical issues. These circumstances can all affect our ability to repay a personal loan. If that loan is secured, then you will lose your asset tied to it as well. To protect yourself from such horrible possibilities, consider purchasing personal loan insurance.
Personal loan insurance is the best protection you can have for repayment when the plan you outlined to cover the loan develops unexpected bumps in the road. The cost of such insurance varies, and is generally determined by the outstanding balance of your personal loan. The type of personal loan insurance coverage you choose will also affect the premium. However, this insurance can offer peace of mind for borrowers, especially those who have a secured personal loan.
There are three types of personal loan insurance coverage to choose from. The specific dollar amounts of coverage will depend on the laws in your State and the dollar amount of your loan. It is important to discuss personal loan insurance with any lender you are considering pursuing a personal loan with.
Personal loan death insurance will pay up to a certain dollar amount in the event of the death of one of the individuals on the loan. In the event that the personal loan only had one persons name on it, then the loan balance will be paid in full up to the maximum dollar amount. Most personal loans only have a maximum loan amount of £15,000 however it is not uncommon for individuals to take out more than one personal loan.
Disability Plus personal loan coverage is the coverage most often purchased for personal loan protection. It will pay your monthly personal loan payments up to a certain dollar amount. In addition you will receive a cash payment of a percentage of your loan amount each month to help you with the cost of living expenses.
Involuntary Unemployment Coverage Insurance for personal loans is very popular. This type of insurance will pay up to a certain dollar amount per month in personal loan payments for up to a set amount of months.
Personal loans are a great financial tool when used properly. Personal loan insurance is a very responsible invest to help ensure your payments will be made regardless of medical issues, unemployment, or in the event of death. The insurance is especially important for individuals with a secured personal loan. Not only with their credit be negatively impacted, but they will lose valuable assets that are tied to their personal loan.
Personal loan insurance is very affordable and can often be purchased through the lender. It is important that you educate yourself in the area of personal loan insurance and inquire about it at the time of looking into such personal loans. Most lenders are more than happy to discuss this option with you as it further assures them they will receive the funds you borrow.
Tuesday, October 27, 2009
Silver State Helicopters student debt case settled
LAS VEGAS —
A student loan company has agreed to forgive almost $113 million in debts for students of a Nevada-based helicopter flight school that folded in February 2008, attorneys general and a state official said Tuesday.
"We can finally see some relief for Silver State Helicopters students who were left in the lurch by the bankruptcy of the company," Nevada Attorney General Catherine Cortez Masto said after a class-action settlement was approved by a federal judge in the Middle District of Florida.
The $112.7 million agreement involved 12 states and Student Loan Xpress, a member company of New York-based CIT Group Inc. Jennifer Altfeld Landau, a Los Angeles-based attorney for Student Loan Xpress, declined immediate comment. A spokesman for CIT Group did not immediately respond to a message.
California Attorney General Jerry Brown and Utah Department of Commerce chief Francine Giani also announced the settlement, which Giani noted requires the loan company to forgive 75 percent of the amount borrowed by the majority of Silver State Helicopter's 2,700 students.
The percentage of loan forgiveness varied by the amount of training that students successfully completed, she said.
"These students did not obtain the helicopter instruction they were promised," Brown said in a statement, "yet Student Loan Xpress insisted that they pay off the full cost of their tuition. Without this agreement, Silver State flight school students would face a mountain of debt for training they never received."
The case is Holman et al v. Student Loan Xpress. Other states involved in the settlement included Florida, Georgia, Idaho, Illinois, Missouri, Montana, Oklahoma, Oregon and Washington.
Masto said a class action administrator will handle the loan forgiveness process and lawyers planned to contact eligible students. Brown said student borrowers with questions could contact the administrator by e-mail at settlementquestions(at)gmail.com.
Silver State Helicopters was founded near Las Vegas in 2002, and grew from a small pilot training school in 2002 to operate 34 flight schools nationwide.
Student Loan Xpress was the school's preferred student lender from 2005 to 2007, Masto said.
Jerry Airola, the millionaire founder and former company owner, lost a 2006 election bid for sheriff in Clark County and Las Vegas. The company filed for Chapter 7 liquidation 15 months later.
Blogged with the Flock Browser
Sunday, October 25, 2009
Credit Card Resolution - How to Get Rid of Credit Card Unpaid Debt
Many people are now having a hard time paying their credit card bills. This is understandable giving the crumbling economy that most of us experience now. It is also the reason why many are forced to file bankruptcy to be saved from a huge debt. However, before filing bankruptcy, you still have hope through credit card resolution.
In case you still don't know, there is actually a way to avoid declaring bankruptcy and to erase the huge amount of debt you owe your credit card company. You can actually erase up to 90 percent of the indebted amount.
Anyone can actually qualify for this program. And unlike the usual government programs on debt solutions, there are no long forms to fill out.
If you are curious on how to get started, you just have to prepare all the unsecured debt statements. After doing so, you can sum up your total obligations. Compute your existing monthly payment to your credit card company. In can only pay up to $100, you can perhaps avail of a "do-it-yourself" card resolution program. Meanwhile, if you are sure that you cannot handle your indebted amount, you can try seeking the help of a debt settlement company.
However, you should also understand that debt reduction programs do not come for free. Some of the choices you have are listed below.
One is through debt consolidation companies. These are the companies which offer services on helping out clients to bundle the accumulated indebted amount, and let clients pay a more affordable amount. However, these companies would simply repackage the payment system. The fees you need to pay ranges from a hundred dollars to thousands of dollars.
Another is through debt settlement companies. These companies serve as legal ways of erasing one's credit card debt. In this way, the borrower can avoid bankruptcy. On your behalf, the companies would do the negotiation with the credit card companies. However, they also collect certain charges that could range from one to three thousand dollars. This is ideal for those who have a significant amount to pay with the creditors, but is well-off enough for the charges to be charged by the debt settlement companies.
On top all of these, however, if you are disciplined to pay your dues, you do not have to seek the help of any debt settlement or debt consolidation company. However, in some unavoidable instances, some people still face this problem. Instead of wallowing in despair, why just seek the best solution you can have for your problem. The options stated above are better than putting yourself at bankruptcy.
Credit card resolution and erasing a huge part or the whole amount of your debt with credit card companies are feasible if you know how and where to start. Before this kind of situation happens, you should first determine if you are really capable of paying credit card bills along the way, or avoid impulsive buying through your card.
Blogged with the Flock Browser
Saturday, October 24, 2009
UPDATE 1-Energy Future's debt swap gets just $351 mln takers
NEW YORK, Oct 23 (Reuters) - Energy Future Holdings has extended the deadline on a massive debt exchange after getting just a fraction of the participation it had sought, the company said in a statement on Friday.
Bondholders have offered to swap just $351 million of debt as of Thursday, out of $12.15 billion that was eligible for exchange. The deadline has been extended to Nov. 10 from Nov. 3, the company said.
Formerly known as TXU, Energy Future has been trying to restructure some of its $43 billion debt load, much of it taken on for its 2007 leveraged buyout by Kohlberg Kravis Roberts & Co and TPG Capital -- the largest LBO ever.
The small participation was a major victory for bondholders, including Franklin Templeton Investors, who had organized to block the exchange after being offered as little as 46.5 cents on the dollar to swap their debt.
Bondholders believed the discounts were too steep now that the bond markets have recovered from a selloff earlier this year, a source close to the group said. Energy Future is also expected to report strong earnings on Oct. 30, potentially lifting the value of its bonds, the source said.
While the debt swap is hanging over the market, however, bonds may not trade much higher, the source added.
Energy Future was hoping to reduce its debt load by about $2 billion by swapping $6 billion of outstanding notes for $4 billion of new notes. The company on Friday said it was reducing the maximum amount of new notes to be exchanged to $3 billion.
In addition to the bond discounts, bondholders were opposed to amendments to bond terms Energy Future was seeking as part of the exchange. The changes to terms or covenants would have made it easier for Energy Future to sell its valuable transmission business, Oncor, a person close to the deal said.
Energy Future also on Friday eliminated an early tender deadline and said that all bondholders who swap debt by Nov. 10 will get the same terms. All bondholders are being offered between 46.5 cents and 74.5 cents on the dollar to exchange their debt.
"Bondholders think that they can do better," said Timothy Doherty, an analyst for high-yield research firm KDP Investment Advisors.
The new notes being offered would have given bondholders an improved claim on Oncor assets, but bondholders worried that their security would be weak. Covenants would have allowed Oncor to be sold and the bonds transferred to a different company, analysts said.
Analysts also said the debt exchange would have done little to head off Energy Future's major debt problem, a looming $23 billion maturing in 2014.
Carl Blake, analyst at independent research firm Gimme Credit, said in a report earlier this month the exchange would have trimmed its total debt by less than 3.5 percent, at best.
"Energy Future Holdings is suffering under the weight of an untenable debt load created by an ill-timed leveraged buyout at the top of the market," Blake said. The debt swap was likely the first step in a multistage restructuring of the company's capital structure, he added.
Blogged with the Flock Browser
Tuesday, October 13, 2009
Corporate Debt Solution
Corporate debt
The original speculative grade bonds were bonds that once had been investment grade at time of issue, but where the credit rating of the issuer had slipped and the possibility of default increased significantly. These bonds are called "Fallen Angels".
The investment banker Michael Milken realized that fallen angels had regularly been valued less than what they were worth. His time with speculative grade bonds started with his investment in these. Only later did he and other investment bankers at Drexel Burnham Lambert, followed by those of competing firms, begin organising the issue of bonds that were speculative grade from the start. Speculative grade bonds thus became ubiquitous in the 1980s as a financing mechanism in mergers and acquisitions. In a leveraged buyout (LBO) an acquirer would issue speculative grade bonds to help pay for an acquisition and then use the target's cash flow to help pay the debt over time.
Commercial Debt Counseling is dedicated to helping businesses struggling from the pressures of debt succeed to achieve financial stability and success. While Consumer Credit Counseling (CCC) exists for individuals, Commercial Debt Consolidation exists for struggling businesses to help them avoid bankruptcy and to create repayment programs with their creditors that fit within the budget of the business.
We do that by restructuring your business debts with corporate credit cards, vendors, creditors, suppliers, business lenders, collection agencies, or attorneys. At the same time we are increasing the cash flow of your business, we work to maintain relationships with key suppliers and vendors.
If you accounts are already delinquent and you are receiving creditor calls with harassing threats, calls, potential repossession, or litigation, we will get started immediately as the point of official contact so that you can focus on your business. Our focus is on reaching out-of-court resolutions that work for your company.
Our program puts you and your business in control of what creditors you want us to work with, which creditors you need to continue services with, how much funds are available, and when they will be available.
http://www.commercialdebtcounseling.com/
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