Latest news with #loans
Yahoo
2 hours ago
- Business
- Yahoo
Tampa woman's parents want their money back after fixing her car — but here's why Ramsey Show hosts say ‘that's on them'
When Amanda from Tampa found herself in a tough spot after her car broke down following a hurricane evacuation, she didn't want to ask for financial help — but her parents stepped in to help anyway. However, what she didn't know at the time was that their 'help' came in the form of a $30,000 home equity line of credit (HELOC), with $11,500 of that unofficially tied to her. 'My parents ended up helping out,' Amanda explained on a recent episode of The Ramsey Show. 'What they ended up doing was taking out a HELOC on their house to cover [my car] and a few other things. I wasn't aware of this until afterwards. But they're the kind of people where strings are attached.' Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how Her father coordinated the repair with a mechanic friend and paid him directly. She never saw the money — or the full terms — but soon found herself repaying $300 a month. Family help turns into dilemma Even more troubling, Amanda did not know the terms of the loan. She only discovered the full HELOC amount by accident. 'I saw a receipt sitting on a table that I shouldn't have.' she recalled. The details raised immediate red flags for cohosts Jade Warshaw and John Delony. 'I think they wanted to take out a HELOC, and I think you gave them a good excuse to do it,' Warshaw said. 'And I think I would treat this like the IRS — put [it] at the very top and pay it off as fast as humanly possible,' Deloney chimed in. Amanda, a single mom who said she's recovering from a difficult marriage and job loss, told the cohosts that she was just starting to get back on her feet when the surprise debt surfaced. 'I was in a bad place because I had no income and I have a three-year-old,' she said. Though Delony initially advised her to prioritize the HELOC like an IRS debt, Warshaw quickly reversed course once the full story came to light. 'Go in the Baby Steps order,' she said, urging Amanda to treat the repayment like any other debt in her 'snowball' — and not to let her parents' emotional pressure override her financial plan. 'If they put strings on there, that's on them,' she said. Warshaw advised Amanda to tell her dad, 'I'm going to pay you back this $11,500. I'm not going to pay it back at 8% interest because I would not have told you to go into debt to do this if you had asked me.' Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it When financial 'help' causes more harm than good Amanda's story highlights a difficult dynamic that many families face: when help is offered without it being asked for — and comes with strings attached. Unsolicited financial assistance, especially when paired with vague terms or expectations, can undermine autonomy, strain relationships and create a sense of obligation where there was never a request. Here are a few healthier alternatives to navigate family financial support: Ask before offering. Before jumping in to 'fix' a situation, ask the person if they want help — and what that help should look like. This respects their own agency and opens the door to collaborative problem-solving. Offer choices, not ultimatums. Instead of saying, 'We'll take care of it,' families can present options. 'We can offer you a loan, or we can help you find a used vehicle. What feels best for you?' Use gifts, not loans. If you can afford to help, consider offering money as a gift rather than a loan. This removes a possible power dynamic and might help avoid resentment down the road — especially when repayment isn't clearly defined. Set clear terms in writing. If a loan is necessary, put the details in writing. Include repayment terms, interest (must be charged for loans over $10,000) and what happens in case of late or missed payments. Clarity helps everyone feel secure. Respect boundaries. Once the decision has been made, back off. Don't use past help as leverage or a tool for guilt. Financial support should never be weaponized. Ultimately, helping a loved one should build trust — not debt. 'You help your kid by buying a $1,500 used Camry with 300K miles,' Deloney said. 'You don't take out an $11K loan at 8% and haggle your single-mom daughter.' What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here's how Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
3 hours ago
- Business
- Yahoo
KKR raises $6.5 billion for asset-backed financing
(Reuters) -Investment giant KKR said on Wednesday it had raised $6.5 billion to provide asset-backed financing, as companies and investors seek out credit alternatives beyond traditional loans. Asset-backed financing refers to loans backed by assets such as mortgages or royalties that have predictable cash flows. Such loans do not rely solely on a borrower's creditworthiness. KKR said it had hauled in $5.6 billion for a fund, named KKR Asset-Based Finance Partners II, and about $1 billion from separate accounts focused on the same type of investments. These funds give borrowers access to loans they might not get from banks, as traditional lenders have been pulling back from riskier loans due to strict regulations. The funds also offer firms such as KKR exposure to investments with consistent returns. "The $6 trillion ABF market, expected to top $9 trillion by 2029, remains undercapitalized despite its rapid growth," KKR's Global Head of Private Credit, Daniel Pietrzak, said. The latest fund attracted commitments from a wide base of investors, including pensions, sovereign wealth funds, insurers, asset managers and family offices, the company said. KKR launched its ABF in 2016. It manages more than $74 billion in ABF assets under management.
The Independent
7 hours ago
- Business
- The Independent
Building societies making bigger mortgages more accessible
Mortgage borrowers could find it easier to access bigger loans under changes announced by building societies. Both Leeds Building Society and Yorkshire Building Society have announced changes. Yorkshire Building Society has launched new higher loan-to-income (LTI) mortgage options for customers who apply direct to the lender. The new 'income lifter' offering will enable first-time buyers to borrow up to 5.5 times their income with a 5% deposit, if their household income is at least £50,000. Non first-time buyers can borrow at up to 90% LTV (loan-to-value), the society said. Earlier this month, the society reduced its minimum household income threshold for people borrowing up to five times their income, from £75,000 to £50,000. Ben Merritt, director of mortgages for Yorkshire Building Society, said: 'We know from experience that many people can well afford to borrow more than 4.5 times their income to secure their desired home, and now we can help more of them do just that.' Meanwhile, Leeds Building Society said it is lowering the minimum household income needed to borrow more than 4.5 times annual income. Joint or single applicants earning £30,000 per year will now be able to apply for a mortgage at that level with the lender. The amount has been reduced from £40,000. Earlier in July, it emerged that lenders could have the ability to offer more mortgages at high loan-to-income levels, if they choose to. The Bank of England said its Financial Policy Committee (FPC) had discussed the current operation of its LTI limits. The developments mean that individual lenders may choose to have more than 15% of their lending at a high LTI ratio. Different lenders will have different risk appetites. Leeds said the changes on minimum income include 5% deposit mortgages and its 'income plus' range which is designed specifically to support first-time buyers. Leeds Building Society's director of mortgages and savings, Matt Bartle, said: 'We welcomed the decision to consider allowing more high loan-to-income on a lender-by-lender basis and are very pleased to have gained the Bank of England's permission. 'Lowering our minimum income requirements brings the dream of homeownership a step closer for more borrowers, including many earning below national average earnings. 'We understand the importance of being a prudent and responsible lender. We carry out detailed affordability checks to make sure borrowers can realistically afford repayments and not over-extend themselves financially.' Applicants can make appointments direct with Leeds or apply through brokers.
Bloomberg
a day ago
- Business
- Bloomberg
CaixaBank Is Seeking to Sell About €900 Million in Soured Loans
CaixaBank SA is in talks with investors to sell about €900 million ($1.04 billion) in soured loans as the Spanish lender accelerates the clean-up of its balance sheet. The talks are focusing on two portfolios, including one with around €450 million named Project Falkor, said people familiar with the matter. It is made up of around 7,000 re-performing mortgages, according to a sale document seen by Bloomberg News.
Bloomberg
2 days ago
- Business
- Bloomberg
Villain of 2008 Crisis Gets New Life in Europe's Push for Growth
In the wake of the 2008 financial crisis, the role of villain partly fell on securitization, turning it into a long-term pariah in Europe. Since then, the market of packaging different loans into products to sell to investors has weakened, made so costly by post-crisis rules that outstanding debt has almost halved from the 2009 peak of €2.3 trillion ($2.7 trillion).
