Homeowners are not the only people having trouble with their loans. Many small businesses have also been hit and are now either facing default or foreclosure. According to the National Association for the Self-Employed, “These small business owners will be at-risk for “payment shock” and default as their monthly mortgage payments skyrocket during the “resets” that are scheduled to begin in 4th Quarter 2008 and continue through 2012,” said Prof. Samuel D. Bornstein of Bornstein & Song, CPAs and Consultants. “The resulting defaults will be the cause of the upcoming second “tsunami” wave of foreclosures that will dwarf the subprime crisis and will take many homeowners and small business owners.”
So, why are small businesses having this trouble? Many of them are being squeezed from both sides. On the income side, with the recession in full swing, it is getting harder to get paid. According to a survey by Intuit, 22 million of the natio... [Read Full Article]
For once, I am not talking about Congress or their $700 billion Wall Street bailout boondoggle that may or may not work. Of course, it doesn't seem to be doing anything for the stock market, but Bush warned us that it would take time to have an effect. Many consider that the biggest scam of them all, but what I am talking about today are some of the most common scams that crop up during economic hard times. These are things, put together into a list by our friends at the L.A. Times, that even Pelosi and Reid can agree are pretty dirty tricks to play on consumers. If you are a small business owner working out of your home, or your credit has taken some damage as the economy picked up speed on the downward spiral, make sure you pay special attention.
Credit Repair Scams With the rise of the FICO Score as the primary grade of credit-worthiness, so rose a cottage industry of people claiming that they can clean up your credit, raise your score and open the door to low interest... [Read Full Article]