You can write the interest on a loan to consumers?

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Apparently when I had my mortgage on my house .. This is not a mortgage at all, it was a consumer credit … Now I know I can not guarantee property taxes or my insurance. But what I do know is if the interest is payable on the loan, as the amortization of a mortgage would be. Thank you
These are the people who make your payments by credit card (or at least the payment) in case of illness or redundancy, a percentage of account balance. They are capitalized as the mortgage insurer? Can they manage the massive layoffs rising rapidly? If not, what then?

  1. Reply
    January 26, 2011 at 11:54 am

    It doesnt matter what the mortgage company classifies your loan as. If the loan is secured by your home (filed with your county/city) then most likely the interest is tax deductable–check with your tax professional–. If your home is not secured by your property then it will not be tax deductable.

  2. Reply
    January 26, 2011 at 12:20 pm

    If there was a mortgage filed, then you should be able to deduct the interest. If not, then no.

    You’ll want to consult an accountant on this one, but this is how I understand it.

  3. Reply
    January 26, 2011 at 12:36 pm

    Actually those aren’t real insurance companies and if all those programs suddenly ceased to exist, it wouldn’t make a bit of differenct to our economy.

    These programs are actually services provided by the credit card company — there is no third party insurance company. It is a huge profit center for the credit card company. They collect those monthly fees and it is very unlikely people ever actually use the service, especially with all the restrictions and rules.

    Even if you do qualify, you will have to submit repeated request to get the program to start. Then they only pay the minimum payment. Not really a good return on your monthly payments.

    Needless to say, these are a waste of money. If you have such ‘insurance’ on your credit cards, cancel it. Use the money toward paying off your credit card debt.

  4. Reply
    January 26, 2011 at 1:08 pm

    This insurance usually isn’t a company but a department of the issuer. Credit card insurance doesn’t need reserves because they don’t pay anything out. They say they cover your minimum payment, but the minimum usually barely covers the interest and the credit insurance fee, so they’re just saying they won’t charge you interest while you are sick or unemployed. The principal stays there and you owe on it when you get well or get a job.

    The next thing to hit the headlines may be other forms of collateralized debt. 40% of credit card and car loan debt has been rolled into bonds and sold, lust like the mortgages.

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