Archive for » July, 2012 «

Portugal BES H1 distinction slumps 86 pct, bad loans up

LISBON, Jul 30 |
Mon Jul 30, 2012 4:51pm BST

LISBON, Jul 30 (Reuters) – Banco Espirito Santo, Portugal’s
second-largest listed bank by assets, posted on Monday a high 86 percent fall
in initial half net distinction that came mostly in line with marketplace expectations
after holding a strike from a burst in supplies for bad loans amid Portugal’s
recession and debt crisis.

BES pronounced in a matter net distinction fell to 25.5 million euros ($31.5
million), even as net seductiveness income rose 12 percent from a year progressing to
nearly 608 million euros.

Analysts surveyed by Reuters had predicted, on average, a net distinction of 28
million euros and net seductiveness income — a disproportion between seductiveness charged
on loans and seductiveness paid on deposits — of 599 million euros.

The bank’s supplies for bad loans jumped 15 percent from a year progressing to
352 million euros.

BES also pronounced it took a 54 million euro one-off detriment from a consolidation
of life word section BES Vida into a change sheet. In a same duration last
year, a bank had pocketed a one-off benefit of 179 million euros from offered a
position in Brazil’s Bradesco bank.

BES shares had sealed 4.2 percent aloft on Monday before a formula were
announced, outperforming a broader marketplace in Lisbon, adult 1.6 percent.
($1 = 0.8084 euros)

(Reporting by Sergio Goncalves, essay by Daniel Alvarenga)

Student Loan Repayment Guide: Consolidation, Deferment, Forebearance …

Graduating college is an exciting experience. It’s the start of the rest of your life. You get to walk away from classrooms and exams and hang a diploma on your wall.

Oh yeah, there’s also the whole part about repaying your student loans.

This was the part you pretended you could avoid, but now that it’s here, what do you need to know? We talked to a few experts and have a bit of advice you in the slideshow below.

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  • Your Grace Period

    “The grace period on a private loan is typically 6 months from the time of graduation,” Sue Khim, the founder of says. “You won’t have to make any payments, but interest will still accrue. The grace period is a great time to formulate a plan of action.”

    Federal student loans carry a six month grace period as well. You’ll probably start getting mail or calls from your lender as the grace period ends.

    Be aware of how long you will have to make repayments. For example, Discover student loans have a repayment period of up to 15 years for regular degrees, but a 20 year repayment for advanced degrees. Check on the websites of your lenders, whether it’s a href=”repayment period of up to 15 years” target=”_hplink”Discover/a, a href=”” target=”_hplink”Wells Fargo/a or another bank, or the a href=”” target=”_hplink”federal government/a, to see if they have any tools to help calculate what you’ll be paying.

    “The grace period also is a good time to establish a monthly budget that includes a student loan payment,” says Steve Olszewski, SVP of Discover Student Loans. “For example, during the grace period, a borrower might set aside each month the money they would normally use for a payment, which would give them a feel for what’s left to pay remaining monthly expenses and leave them some cushion money.”

  • Deferment Forebearance

    Your loans were likely already in deferment while you were in college if you were a full-time student. Most loans include a 6 month grace period after that.

    But you can apply for an extended deferment.

    “If you’re unemployed or struggling financially, a deferment or forbearance will put your payments on hold for a short time,” Khim explains. “The big difference here is that interest won’t accrue on your subsidized [federal] loans during deferment, but it will build up during forbearance.”

    You can set up a deferment or forbearance any time, even near the end of your grace period.

    “Common reasons for deferments include active military duty, public service and health care residency,” says Steve Olszewski, SVP of Discover Student Loans.

    A representative from Wells Fargo says that if a borrower is struggling to make payments, and allows the loan to go into a delinquent status, lenders might have fewer options available.

    Federal and private loans will continue to accrue interest during a forbearance or deferment period.

    Khim also adds that you should never miss a payment, and if you think you might, contact your lender immediately. “You’ll want to avoid missing a payment like the plague–nothing good can come of it,” she says.

  • Consolidation

    Consolidating your loans means you would apply for a new loan that would cover what you currently owe. You would then start paying the new loan.

    “When students consolidate their student loans, they generally are combining multiple loans into a single loan with one monthly payment. In some cases, banks will extend the new loan repayment period with lower monthly payments,” Olszewski says. “However, a longer repayment period increases the amount students pay over the life of the loan because more interest will accrue during the extended time frame.”

    You don’t have to go through the same bank you got your private loans through, either. If you have loans from, say, Wells Fargo, you can go to a another local or national bank for a consolidation loan. However, Wells Fargo also has their own consolidation loan to offer.

    “Consolidation does lower your monthly payments, but it also means you’ll be paying for a longer time and paying more overall,” Kihm says.

    One thing to know — private and public loans cannot be combined here. If you have private loans from more than one bank, you can consolidate them together. However, the public loans you got from the government do not work for consolidation.

    If you do decide to consolidate multiple federal student loans, into one monthly payment to a single servicer, Olszewski notes “the interest rates for consolidated federal loans are fixed and cannot exceed 8.25 percent.”

    If you’re not sure you want to do consolidation, check about other options that may be available.

    Extended repayment is one option Wells Fargo offers to “certain borrowers and payments may be based on a fixed or graduated repayment schedule over a period of up to 25 years.” A number of lenders also have graduated repayment, where you make lower payments at first, then gradually increase them.

    If you don’t want to consolidate, check to see if your servicer can at least adjust the schedule so you have payments to each lender due at the same time each month.

  • How Do I Escape Debt?

    It’s not easy.

    Student loans from the federal government cannot be erased in bankruptcy, and thanks to a 2005 change in the law, private student loans are not eligible for bankruptcy either.

    In a statement, Wells Fargo said in the event of permanent death or disability of the student, they offer loan forgiveness for any private student loans used to directly cover education-related expenses.

  • …But There Are Ways

    There are a few ways to get that debt off your back, most of them involve public service:

    Teach for America offers an AmeriCorps Education Award, which allows TFA participants, having completed two full years of teaching, to write off up to $10,700 in student loans. Several states also offer incentives to help you pay off or write off student loans if you take positions they need filled in their state for a certain number of years.

    The Peace Corps pays down 15 percent of all Federal Perkins Loans for each year of service. After the third year, participants are eligible to write off 20 percent of all Perkins loan debt per year.

    Enlisting in the U.S. Armed Forces also makes it possible to write off $65,000 in student loan debt.

    Want to get rid of them without using the federal government? Try
    a href=”” target=”_hplink” offers a weekly scholarship of up to $10,000 to participants who write blog posts. The author of the highest-rated blog gets the weekly scholarship – applicable to both current tuition AND tuition debt. To date, they say they’ve awarded over $1,000,000 in scholarships.

Ten Traits Of Debt-Free People

I was debt-free once. we had paid off my tyro loan and had no consumer debt. we suspicion we would immediately start spending my suddenly-increased disposable income yet we didn’t. Instead we found that we was really discreet with my income until we done a choice to go behind into debt around a mortgage.

It turns out that we was like many debt-free people. It takes a lot of work to turn debt-free and those lessons tend to hang with people.

Patrick Demers* recently became debt-free yet it took him 4 years to get absolved of $30,000 of debt. He says in an email interview, “I had amassed a substantial volume of propagandize debt, credit label debt and went by a widen of being impoverished for roughly 6 months.”

1. They are detail-oriented and really organized

Paying off debt means meaningful what we owe, building a bill and adhering to it. Debt-free people keep lane of their bills, how most they earn, how most they save and how most they invest. They pronounce to experts and have a tracking complement in place, either it’s an Excel record or another program. Demers went to a financial planner when he started a new pursuit in 2008. “I went to a financial planner to get my residence in sequence and set adult a debt amends plan, as good as fixation a apportionment of my paycheque to an RRSP.”

2. They’re stress-free

Debt creates stress. People worry about money, they dismay subsequent month’s bills, they can’t nap during night that leads to bad work performance… a list goes on. Getting absolved of debt gets absolved of highlight as Demers gifted when he finished profitable off his debt. He says, “It felt amazing. It was like this outrageous weight was off my shoulders. we didn’t go out to celebrate, though. I’m merely modifying my devise now.”

3. They work within a budget

Just since they have disposable income doesn’t meant they spend haphazardly. If they can means it, they’ll spend. If not, they’ll wait or abandon spending.

4. They compensate cash

One of a reasons we was means to compensate off my debt was since we chose to compensate with cash. If we didn’t have a money, we didn’t use credit as that would boost my debt load.

5. They don’t have a lot of credit (and they know credit)

VA Loan Processing Times Still Slow

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VA Loan Processing Times Still Slow

VA Loan Processing Times Still Slow

The banks and lenders that are still in business have also tightened their underwriting discipline creation it some-more formidable to navigate loans

Lehi, Utah (PRWEB) Jul 31, 2012

The VA streamline timetables continue to see vital delays with vast amounts of VA homeowners looking to take advantage of historically low home seductiveness rates.

When a housing marketplace collapsed in 2008, some-more than 250 banks, lenders and debt companies went out of business. Consequently, a vast converging transformation occurred with banks and lenders from 2008-2010.

The banks and lenders that stayed in business during a 3 year widen have combined and perceived a vast pool of additional business from a 250 banks and lenders that folded.

With 30-year home seductiveness rates during 3.75%, thousands of people are in a VA loan underwriting routine and a shutting timetables are significantly slowed down.

Owner of, Eric Kandell, knows a frustrations of many VA borrowers and wants to assistance surprise a stream business to improved conduct a underwriting calendar expectations.

“A vast volume of people are lined adult to refinance their VA home loans in an sourroundings with most reduction support staff,” Kandell said. “The banks and lenders that are still in business have also tightened their underwriting discipline creation it some-more formidable to navigate loans.”

According to, on Jul 13th one of a nation’s largest lenders, Wells Fargo, dropped indiscriminate mortgages and another vast lender, GMAC, recently announced bankruptcy. These new announcements have already had a vital kickback on a loan estimate timetables and serve delayed down a VA refinance routine for maestro homeowners.

“Customers should not be fearful that these companies are discontinuing loans, though they should know this proclamation creates a bottle neck for a VA debt industry,” Kandell said. “We are really assured in a abilities to pierce brazen since a classification does not rest heavily on Wells Fargo or GMAC.”

The home loan timetables have also been severely influenced by a U.S. bail out loans upheld by President Obama called HARP (Home Affordable Refinance Program). HARP loans have formulating hundreds to thousands of new field incompetent to refinance in prior months and contributing to a VA loan bottle neck.

Kandell recently had a review with a VP from one of a country’s largest pretension companies. During a review a VP common some discernment on a refinance check times.

“I only came from visiting one of a vital clients and they are pulling during slightest 120 days from start to finish for their refinances. We have loans with them that were started in Mar of 2012 and if we am propitious they will tighten in Sept!” a Title Company VP said. “I was also recently in TX with another lender and they have only hired tighten to 6,500 new loan staff to assistance them support them removing their HARP loans processed. The volume of refinances entrance by is crazy!”

With a ever changing debt industry, veteran homeowners looking to refinance can remember a estimate and underwriting timetables can change with each VA loan. is dedicated to gripping borrowers sensitive on a wait time from day one of a loan process.

“We take honour in ensuring a borrowers are prepared and prepared for a volume of time their loan will be in underwriting,” Kandell said. “The borrowers need to know a categorical idea is to get their loan closed. If a borrower is prepared in a VA loan underwriting timetables a attribute with them is severely enhanced.”

To learn some-more about a VA Loan estimate delays visit:


LowVARates is a multiplication of Flagship Financial Group LLC and a heading inhabitant VA Lender. Low VA Rates takes good honour in portion a nations Veterans and Military home owners. The association goes to good lengths to safeguard their needs are met. Whether we are looking to squeeze a new home for a initial time, are a seasoned home customer or are looking to refinance, Low VA Rates will find a best probable VA loan program. has been providing VA loans for a past 10 years and has 7 of a tip 12 imagining loan officers in 2012. The association has sealed thousands of VA home loans and understands a VA debt attention to safeguard troops homeowners accept a best service.

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