Credit Crunch

Have you been affected by the credit crunch

  • Yes, Now it's getting scary

    Votes: 2 5.0%

  • Yes, somewhat

    Votes: 14 35.0%

  • No, not at all

    Votes: 20 50.0%

  • Don't need credit, I surface clean in Arizona

    Votes: 0 0.0%

  • What credit crunch

    Votes: 2 5.0%

  • It that a cereal?

    Votes: 2 5.0%
  • Total voters
    40
  • Poll closed .
Tony Shelton

Tony Shelton

BS Detector, Esquire
Has your business been affected by the credit crunch?

Here's what's happened to us:

Shelly's Business-
Credit score Oct. 07 - 721
Main business credit card - $40k limit (paid off every month) DISCLAIMER for JIM GAMBLE ;) - ----she uses this for short term LOANS for her customers - that's not her income!)
Other business credit cards - $8k (paid off every month)

My Business
Credit score Oct. 07 - 730
98k in equipment loans
$20k in business credit cards - (paid off every month)
$320k HELOC with about 100k available

NOW OCT 08
Nothing has changed. Only one small 8k loan added. Never a day late on any payments.
Credit scores - Shelly 620:mad: , Me 660:mad:
Shelly's $40k card reduced by credit card company to $4k, useless - she just closed the account. Other credit cards unaffected
Mine - 320k HELOC reduced to the amount borrowed and closed- (230k or so)
Business cards reduced by credit card company (1) from $20k to 8k. (YESTERDAY I got a GE capital letter in the mail CLOSING an 8k card BECAUSE I HAVEN'T USED IT IN SIX MONTHS!!!, that was my high-interest emergency card!!)
Now it looks like (according to the credit report) we are maxxed out on all our credit and up to our necks in loans. BUT NOTHING CHANGED! Except the banks reduced our credit.
Now, for the past 5 months Shelly has taken out $40-60k signature 30 day loans from the bank for her customers. Two weeks ago the bank told us no more signature loans. WE PAID THEM ALL OFF EVERY TIME BEFORE THEY WERE DUE!!! Shelly had to change the way she does business and p**sed off a lot of her customers she has had for over 8 years!

1 out of 74 homes here is RIGHT NOW IN FORECLOSURE. Not just late, actually in FORECLOSURE. If we have an emergency we may join that club since we have very little buffer zone now.

Is anyone else going through this or is it limited to the Las Vegas area?
 
In the town on Mountain House California which is just east of the Bay Area, there is 90% of people that are upside down on their home and are facing foreclosure. This community was established 5-8 years ago, and all was going well until all this started happening. It is a community of 8,000 @ 90%:eek: . The news said it was #1 in the country, then followed by Clark County Nevada. They gave an example of one house that was purchased for $650,000 five years ago, now it is worth $320,000. Also the owner's of that home that I just mentioned, their adjustable rate mortgage is going up next month and will double their payment. I honestly don't know what is going to happen but it is scary.
 
Big E said:
In the town on Mountain House California which is just east of the Bay Area, there is 90% of people that are upside down on their home and are facing foreclosure. This community was established 5-8 years ago, and all was going well until all this started happening. It is a community of 8,000 @ 90%:eek: . The news said it was #1 in the country, then followed by Clark County Nevada. They gave an example of one house that was purchased for $650,000 five years ago, now it is worth $320,000. Also the owner's of that home that I just mentioned, their adjustable rate mortgage is going up next month and will double their payment. I honestly don't know what is going to happen but it is scary.
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Here are our appraisals over the years:
2003 - 425k
2004 - 530k
2006 - 725k (after additions) (Smaller neighbors house across the street sold for $751k
2007 - 825k (who knows why?)

2008 - Don't know, scared to ask.

Same neighbors house across the street foreclosed and sold for $425k 4 months ago - from $751 to $425 in two years.

Another house down the street was a tear down, 1/2 acre lot alone sold for $605k, now bank is offering it for $225.00. We should buy it and put up a tent!

We live on a quarter mile long street. Right now there are 8 foreclosures for sale on it.
 
The wife and I were thinking about building earlier this year, boy am I glad we decided to stay in out current home. It's a manufactured home, but at least I know that we can afford the mortgage. It is very comforting knowing that as far as our mortgage goes we are going to be ok, and we can still save a little money in the process of things so we can go to Vegas for the NASCAR race in Feburary!!!!;)
 
I've heard quite abit about peoples credit scores going down because credit card companies are reducing limits, it hasn't happened yet to me but who know when it will. I also think this could be a big scam for the credit card companies. They lower the scores now while its bad and when things get better and people want credit, home mortgage etc the will be able to charge you a higher interest rate

I was never a conspiracy theory kind of guy but these past few years I really wonder if big biz has this big silent scam going on. Look at the bailout, companies are getting millions of our money, they really aren't changing to much of their bad practices, still high salaries etc etc and we take on their bad debt. What do they have to lose nothing much, they made billions and we the people will be paying for that bailout and more for decades HMMMMMMMM

Sorry to hear about your scores, thats a kick in the B's just too bad and how it effected your wifes biz is just wrong. Good luck
 
Yeah seems that if we dont pay or credit card payments on time we get nasty phone calls, but if the creditors dont make there payments they just get money from the goverment.
 
The problem with Arizona is that the State itself is in a serious crunch, in fact, I believe that our states debt is the worst in the nation per capita. It really sucks, especially when my business is sales tax driven. It is a killer. Fortunately, we do have a couple of things going for us. A little cash in the bank, and some customers that are fairly recession proof. But, it is little comfort.
 
Your credit is shrinking because the total available credit out there is shrinking.Every person in the country is being affected by the credit crunch,they just don't know it yet.

The card companies are drawing in because they don't have it to lend.They can change your rates any time they want,and right now they need the money.So who is going to pay them.The people that have their cards.

I read the other day that they can lower your limit say from 10k to 5k and if your have 6k charged on the card they will start charging you over limit fees..
 
jlpressure said:
I've heard quite abit about peoples credit scores going down because credit card companies are reducing limits, it hasn't happened yet to me but who know when it will. I also think this could be a big scam for the credit card companies. They lower the scores now while its bad and when things get better and people want credit, home mortgage etc the will be able to charge you a higher interest rate

I was never a conspiracy theory kind of guy but these past few years I really wonder if big biz has this big silent scam going on. Look at the bailout, companies are getting millions of our money, they really aren't changing to much of their bad practices, still high salaries etc etc and we take on their bad debt. What do they have to lose nothing much, they made billions and we the people will be paying for that bailout and more for decades HMMMMMMMM

Sorry to hear about your scores, thats a kick in the B's just too bad and how it effected your wifes biz is just wrong. Good luck
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Keep it up and you might turn me into a democrat.:(
 
tonyshelton said:
Keep it up and you might turn me into a democrat.:(
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LOL Thanks that gave me a good chuckle. Republican or Dem we all should be mad about the way a lot of things are being handled. We have to reign in big biz. Sorry we need to kick big biz in the B's and make them become good corporate citizens ........but how is the question. Tony a dem now that is funny.

Good luck man and go clean some concrete
 
jlpressure said:
LOL Thanks that gave me a good chuckle. Republican or Dem we all should be mad about the way a lot of things are being handled. We have to reign in big biz. Sorry we need to kick big biz in the B's and make them become good corporate citizens ........but how is the question. Tony a dem now that is funny.

Good luck man and go clean some concrete
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No, you are mistaken. We need to reign in government and the knuckleheads that are not allowing businesses to fail or succeed on their own. It is amazing how close these bailouts are appearing to be socialistic in their intent. It is kind of like giving welfare to someone and they get used to it, so they expect it, and then they get so used to it, they cannot live without it.

Now go here, they are wanting to bail out the Automakers for $25 billion, that is about $100 for every man, woman and child in the country. I'm sorry, but I just do not feel it is worth it, or the $2500 per person that is being donated to the financial industries to help them succeed. I would rather just make us all suffer together for a short time, and then work to recover, instead of the depression era economics that could drag this out for 10 years or more, until there is an incident that would compel even harder times for a short time, and then to resume some financial prosperity.

Now, do you wanna know how I really feel?
 
When the airlines wanted a bail out at least they demanded management and the labor employees take a pay and benefits cut. I haven't seen any offers from UAW offering any cuts to keep them alive? Indiana is a big auto worker state but I say let them go. Every US auto produced has $1,500 in benefits only not labor costs in it at every UAW factory. After saying that I have always purchased trucks and cars made by US companies and will continue until there are none.
 
Scott Stone said:
No, you are mistaken. We need to reign in government and the knuckleheads that are not allowing businesses to fail or succeed on their own. It is amazing how close these bailouts are appearing to be socialistic in their intent. It is kind of like giving welfare to someone and they get used to it, so they expect it, and then they get so used to it, they cannot live without it.

Now go here, they are wanting to bail out the Automakers for $25 billion, that is about $100 for every man, woman and child in the country. I'm sorry, but I just do not feel it is worth it, or the $2500 per person that is being donated to the financial industries to help them succeed. I would rather just make us all suffer together for a short time, and then work to recover, instead of the depression era economics that could drag this out for 10 years or more, until there is an incident that would compel even harder times for a short time, and then to resume some financial prosperity.

Now, do you wanna know how I really feel?
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Pitch-perfect, Scott. That is preachin' it tight---you are like a Mormon version of Jeremiah Wright!!:D

I get more upset about this every day. This was so URGENT, couldn't wait to think about other options, so we move fast and proactively, and pull a huge boner. This all just seems so crazy. Who is a competitor of AIG.....StateFarm, etc?? Man, I'd be FURIOUS if I were one of those co's!! Same for the other investment banks. It just upsets me so much to think that I have no cushion for failure. And now every other co in America is going to be wanting their piece of the Handout....and I don't blame them!! I mean, what if StateFarm starts going south in 2-4 years?? If we don't bail them, they'll say, "We get to fail, but if you'd have let AIG fail like they should have, we could have absorbed their biz and we'd be super successful!" I mean, talk about getting reamed.

We got rushed into this. I wish there was some way we could put on the brakes and redo this whole thing, and just let all those co's fail.
 
Jon Fife said:
Pitch-perfect, Scott. That is preachin' it tight---you are like a Mormon version of Jeremiah Wright!!:D QUOTE]


That's funny! :D :D

Scott yelling....."NOT God BLESS America!!......Gosh darnit NAUGHTY, NAUGHTY AMERICA!!!!" :eek:

But, Scott, you are so right.

(Inserted long dissertation here, then deleted it.)

(Thank you Ashley for making fun of my long posts.)
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IndyExterior said:
When the airlines wanted a bail out at least they demanded management and the labor employees take a pay and benefits cut. I haven't seen any offers from UAW offering any cuts to keep them alive? Indiana is a big auto worker state but I say let them go. Every US auto produced has $1,500 in benefits only not labor costs in it at every UAW factory. After saying that I have always purchased trucks and cars made by US companies and will continue until there are none.
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Actually I heard on TV today, I wasn't listening close but they said some of the wages have gone from $28 an hour down to $14 and GM or who ever doesn't have to pay for the pension or something anymore the members of the UAW are paying or taking it over.

You know something thou it just seems everyone all the workers union or non union east, west, south & north are losing or giving up more and more, taking less pay than just 5 years to a decade ago. Most either are paying for some of their health care, no more real pensions any more, less job security and the list goes on. I just thought each generation was suppose to do better, but all I see is less & less for the average Joe the plumber blue collar worker and up until recently the corporations ceo's and shareholders have done very well, made million & millions in many cases. Now they aren't doing well they say, so here we are Joe the plumber average blue collar worker (if you still have a job) Here they/we are paying to bail out the big biz

It just seems like everything is turned around back wards these past year and average Joe is getting it stuck right up the waazoo and still is getting less and less

I don't know it seems like the USA is going to turn into one big Walmart and you know something Sam Walton wouldn't even like how Walmart is run these days, he was more of a good corporate citizen then they are now

I will keep trucking on but I do worry about the overall health of our country and those great Americans that work hard every day just to get by and make a living (Like I said if they still even have a job)

1.2 Million+ people have lost their jobs this year, thats a lot. I wish the best for them I hope things turn around sooner than later

Fight on America you will always be great
 
This is some scary stuff. I had a great credit rating about 4 years ago. From some bad decisions it's in the crapper now. I am in the middle of trying to build a succesful PW company in some horrible economic times. The last thing anyone needs is for credit companies to turn their heads on people who have been doing the right thing from day one. It ends up hurting them which in turn makes it harder for someone like me that screwed up and is trying to get back on track. I have no idea how long it is going to last but something needs to change. Like I said before this is some scary stuff. It stinks that people like Tony and his wife, that have done it right, are getting screwed.
 
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