Sunday, April 28, 2013

"Loans Borrowed Against Pensions Squeeze Retirees"

From:

A Vulnerable Age

Loans Borrowed Against Pensions Squeeze Retirees

"To retirees, the offers can sound like the answer to every money worry: convert tomorrow’s pension checks into today’s hard cash.

But these offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and plunging them further into debt. The advances, federal and state authorities say, are not advances at all, but carefully disguised loans that require borrowers to sign over all or part of their monthly pension checks. They carry interest rates that are often many times higher than those on credit cards."

Check out the entire article. 

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