Unsecured Loans: asset-free opportunity for those in need

Struggling to connect with their delinquent customers, a group of six major mortgage lenders is teaming up with nonprofit groups to serve as a go-between.

As part of the program, borrowers who get behind on their payments will receive notice from a financial counseling service instead of the big, bad bank, said an executive with one of the lenders.

The plan is expected to be announced today by representatives of the Bush administration and the Hope Now coalition of lenders. Company officials could not speak publicly about the plan in advance of today's news conference in Washington.

Foreclosure typically begins at the 90-day delinquency mark, when borrowers receive a notice of default alerting them that they could lose their homes if they don't pay up. read more

Lenders Get Creative to Reach Borrowers in Default

But it's still too bad that the concept of budgeting is so surprising to this teen.

Budget is a scary word to far too many Americans, but it shouldn't be. All a budget does is ensure your money works for you in the ways you want it to. Think of it as a spending plan or a magic pony savings fund rather than a budget, if you like, but don't think it's only for poor people. It's possible to live above your means no matter how much money you make -- look at MC Hammer.

Budgeting is an essential component of money management for everybody -- rich, poor, or in between. It doesn't mean deprivation (really, truly); it means common sense. It's possible for a budget to contain hundreds or thousands of dollars a month in fun, frivolous purchases. All the budget does is make sure that all your financial goals, fun included, stay met. read more

In search of an insurance policy

Corporate bond spreads were mixed, although the spread on an index of junk bonds ended the week 6 bps wider.

January 21 - Financial Times (Deborah Brewster): Investors are pouring money into the opposite ends of the risk spectrum, with cash and high-risk emerging markets attracting record inflows while the middle ground - traditional bond and equity funds - attract little or no money. In an unprecedented shift of money from developed world stock markets to emerging markets, US investors last year put a record $40bn into emerging markets funds - almost double the amount of last year... Other than emerging markets, money market funds were the clear winners in 2007, with inflows of $760bn during the year that lifted their assets to a record $3,100bn, according to iMoney-Net.

It was another slow week of debt sales. read more