Fritz Elmendorf Quotations

We've seen record numbers of bankruptcies every year. The lending industry feels there are a number of filings that are abusive and could have been avoided.

When you borrow to the max, you can't afford to take a hit on income, and unfortunately what we're seeing are layoffs and reductions in income and potentially an increase in the already high level of bankruptcies.

Give some careful thought to how much money you can have in that account. With yields as low as they are, it might not be your best option.

People have to think realistically, and I think the economy is pretty sobering right now, and people should consider their financial moves very soberly. Part of that is getting in less debt.

I think our main concern is in calling for some type of federal policy that affects the issuance of credit cards or any credit to consumers. This is a very competitive business and it does provide a great amount of convenience to consumers. Any effort to curb that would affect a lot of lower income consumers disproportionately.

You'll pay more for it, but it still should be less than your credit-card rate.

This year, there's a better chance that rates will start to climb up than there is a chance for more significant easing. If you're considering refinancing, you shouldn't wait.

There's likely to be a charge when you use this service, but it's less than the $25 bounce check fee.

Think about the relative merit of variable rates versus fixed-rate credit. Locking in a fixed rate now gives you a great deal of comfort. Even though the lowest rate might be a variable rate, those could start to climb again next year.

Any change in rates on home equity lines is directly related to the actions of the Fed. On average, their rates are 1 percent over the prime rate, but some banks even offer home equity lines at the prime. Home equity lines are probably the cheapest way that homeowners can currently borrow money.

The broad trend among banks is to service customers almost regardless of their credit standing. They do not want to turn a customer away, particularly if it's a customer with a checking account or another relationship.

Bankruptcies are very serious issues that can often be avoided by seeking help from a professional debt counseling service that will intervene with creditors.

Bank loans have pretty attractive interest rates these days. Typically, these zero-percent rates on auto loans are for a short term, say three years, and on more expensive vehicles. People end up buying the car, but use a bank loan to do so. Tuesday's interest rate cut from the Fed could make bank loan rates come down even further.

Banking was never free because consumers were not getting a market rate on their savings and were paying a lot more for loans.

Banks have various sources of earnings. If a bank is large enough to have international operations, it has evolved enough diversification to counteract those losses.

A lot of people get a home equity loan and do it on their own, short of going to a credit counseling agency. You can consolidate your credit card debt and have a lower monthly payment that will maybe get you through a squeeze.

A lot of consumer advocates say you shouldn't put your home at stake, and that's advice worth considering. But using your home gives you access to credit that's cheaper than other sources.

Not every place right off the bat will offer you a good rate. One company may offer you 15 percent. Another may offer you 11 percent.

Small businesses are very important customers for banks today because there are more of them than ever before and each and every bank is fighting to get them.

Small banks come out with an edge on pricing, but what is not measured is the convenience factor.

The key to attracting small businesses is to give them as many different services as possible. Because today if one bank won't do that, another will.

The larger banks are seeing a lot of market share in this area, but the larger credit unions and the ones being run by ex-bankers are setting up arrangements where a non-member can finance a car right at the dealership just by signing up to be a member.

If you don't trust yourself with that much credit, you should ask that the limit be reduced.

Generally, they're very eager to resolve issues with their customers, to make accommodations to retain the customer. It's much easier to retain a customer than to find a new customer.

The finance manager is going to find someone to approve your loan. It's just a matter of what you're going to pay for it. It may not be the best rate out there, but it will get you in a car.