Staying Off the Car Payment Treadmill

Mr. and Mrs. ToughMoneyLove do not like car payments so we don’t have any. I don’t understand the logic in borrowing money to purchase a depreciating asset. Read more

The American Dream Revisited

Long time readers know that Mr. ToughMoneyLove has been a harsh critic of government intervention into the homeownership business, particularly its cheerleading of unqualified buyers into sub-prime mortgages.  I’ve written several posts on the topic including:  Homeowner Bailouts Destined to Fail, Sub-Prime Memories are Short on Capitol Hill, and Taxpayers Crushed by the Destructive Push for Home Ownership. If you think I’m wrong about the failure of government involvement, read the data cited in those posts. Read more

You Can Benefit from Impending Inflation

I have a suggestion for how you can benefit in residential real estate from the approaching inflation.

When writing about inflation, most personal finance writers (including Mr. ToughMoneyLove) spend most of their energy on damage control. We talk about investing in gold, commodities in general, or inflation protected securities such as I-Bonds and TIPS. There is a lot more of that going on now because of current government fiscal and monetary policies. Most experts just can’t see a way for our economy to avoid the ravages of escalating inflation in the very near future.

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Do You Need a Mortgage Broker?

I have never used a mortgage broker, preferring to be more personally involved in loan investigation and due diligence. Lots of others have used them and I wonder how much that has contributed to our recent financial meltdown. Read more

Private Student Loan Lenders Prepare for Battle

The federal government has been subsidizing student loans made by private lenders since 1965. This must end and, to his credit, that is what President Obama wants to do. Read more

Washington Now Creating Economic Fantasies

The Obama economic team is so desperate to implement its rescue agenda that it is relying on fantasy and myth about our economy and about the laws limiting its authority. Read more

It’s Time to Estimate the Market Value of Your Home

We’ve all been avoiding the scary task of checking on the current market value of our home.  We have read that the median price on sales of existing homes fell 13.2% in one year, the biggest drop in 40 years.  We also know that new housing starts in November were 624,000 units, down from 1,178,000 units a year ago.  (Source: Barron’s)  All of the housing news is bad except for mortgage rates which have fallen.

Mr. ToughMoneyLove thinks it’s time for all homeowners to face the music and find out what has happened to our own home valuations.  The numbers won’t get any better if you avoid looking at them.  I promise. Read more

HGTV’s “My First Place”: Where are the Hazardous Content Warnings?

Lots of cable TV shows carry “adult content” warnings in the opening credits, to prepare us for violence and adult themes.   I think that “hazardous content” warnings need to used on some TV shows that feature people spending their money. Read more

Homeowner Bailouts Destined to Fail

After years of observation of American consumers, Mr. ToughMoneyLove some time ago arrived at the opinion that some folks just are not meant to be homeowners.  This does not mean they are bad people or fundamentally undeserving.  The fact is that some people lack the resources, judgement, or discipline to make good financial decisions or to fulfill all of the financial obligations associated with owning a home and paying on a mortgage.  For them, it’s just not going to happen. Read more

The College Student Debt Machine: A National Disgrace

With so much consumer and mortgage debt having been accumulated in the U.S. over the past 10-20 years, it was inevitable that those who have become addicted to credit would create a separate feel-good category that they like to call “good debt.”  Student loans are often touted as being “good debt.”  In this regard, Mr. ToughMoneyLove believes that our colleges and universities have not received enough of the blame for promoting student loans as “good debt’ and for making students and parents alike feel all warm and fuzzy about going off to college riding on a staggering pile of student loans. Read more

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