Debt is a facet of the 21st century. The average US household will hold up to $9,600 of credit card debt alone. Businesses are not completely safe from this, either. They're constantly getting into needless debt because they assume they'll take off and be able to pay it back later.
A new generation of innovative capital providers has ushered in a Golden Age of financing for small businesses. Today's entrepreneurs can select a finance provider, choose an application process that meets their needs, and specify a repayment schedule.
This burden has left the U.S. female graduate with over $28,000 in student loan debt, according to The Institute for College Data and Statistics. Moreover, a new report from the Brookings Institution points out that this student debt average is quadruple the amount that it was just 12 years ago.
First, understand that the main reason you're being asked to cosign a loan is because lenders don't think the borrower is a good risk. By cosigning, you're guaranteeing that you'll repay the full loan -- plus any late fees or collection costs -- should the borrower default.
Merchants basically get it -- to many of them, Groupon looks less like an innovative advertising mechanism than a loan broker, arranging bundles of small loans from consumers, and taking a substantial cut... Consumers don't often see this side of the equation.
For the past year there have been worries that the FHA might require taxpayer money to pay off lender claims for loans gone bad. But now it may be that the economy has turned around and the FHA may well do better than anyone thinks.
For months the real estate industry has been complaining about a shortage of homes to sell, an inventory which is too small. Raise down payment requirements and the inventory problem will vanish while home prices will fall. Why? Because there will be fewer buyers in the market looking for homes.
In a destitute country facing famine, natural disasters, and a beleaguered government, Muhammad Yunus saw an opportunity to help people one by one, and built an organization of others helping poor people help themselves