Frank Yan of Sacramento on Mortgage Rates Faces North in the New Year

Frank Yan of Sacramento posts a related article: Information Thats Hits Us Where We Live

Frank Yan of Sacramento says thate mortgage rates faces North for the begining of 2014. Freddie Mac’s 30 year fixed-rate mortgage climbing to 4.53% and the 15 year fixed-rate mortgage climbing to 3.55%. Frank Nothaft, Freddie Mac’s chief economist, stated “rising consumer confidence a strong showing for home prices in the most recent S&P/ Case-Schiller Indices, and a slight gain in pending home sales for November 2013” as reasons for the rate increase. He added that these indicators are all “signs of a stronger economic recovery”

Frank Yan of Sacramento on Debt Relief Options

Frank Yan of Sacramento posts a related article: The Top 10 Debt Mistakes You Don't Want to Make

Frank Yan has consulted many home buyers with debt in Sacramento and says that if you have a significant amount of credit card or unsecured debt it's often hard to get clear, accurate information about your options. Consumers will find that there isn't a "perfect option", but there will definitely be a "best option" for debt relief. It's important that you take the time to understand the benefits and risks of any debt relief plan before committing.

Here is a summary that Frank Yan put together of available debt relief options based on $30K of credit card debt:

1.Minimum Payments.


The banks prefer you pay only minimum payments. Why? You make them incredibly rich by doing so. This may be the single most harmful financial mistake you can make.

Pros: None
Cons: You'll end up paying 400-1,000 cents on the dollar for your purchases over 20-30 years.


BE CAREFUL: Money spent towards servicing debt for 20-30 years is MUCH better spent building savings, paying down a mortgage, or funding investments and retirement - ask any financial planer.

Success Rate: 0% (even paying your credit cards off with minimum payments isn't a success)

Approx. Payoff: Monthly payment of $480: 24 years (288 months). $139,461.

2. Accelerate Payoff with extra principal.

You can pay extra money towards principal every month to pay down your creditors faster.



Pros: Will reduce your total payoff and the time it takes to get out of debt.
Cons: Not many people have extra money these days. You also can't control what the creditors do with your interest rates or if they apply the money correctly to principal.


BE CAREFUL: This will take the discipline of paying extra every month as long as it takes, which is hard to do. Think of it this way: we all know we're supposed to go to the gym and work out more, and may even start off good, but do we keep going every month? Knowing what's good for you and doing it are two different things.

Success Rate: 7%
Approx. Payoff: Monthly Payment of $680: 9 years (108 months). $63,094.

3. Payment Plan.


If you are having financial trouble or miss payments you may be able to negotiate a payment plan with your creditors for 100 cents on the dollar.


Pros: Payoff for less than minimum payments.
Cons: You won't be able to use your card anymore. Negative impact to credit score. You will have to negotiate this with the bank and they may not approve it.

BE CAREFUL: If you miss even one payment on this plan all of your back interest and late fees may be added in with interest rates as high as 30%

Success Rate: 29%
Approx Payoff: Monthly Payment of $480: 5.5 years (66 months). $30,000.

BE CAREFUL: There is no huge financial benefit to CCCS that cannot be achieved more efficiently through a repayment plan or debt settlement.

Success Rate: 21%

Approx. Payoff: Monthly Payment of $700: 5-7 years (60-84 months). $51,300.

5. Debt Settlement.


Debt settlement is a legal negotiation where your creditors will take less than what is owed, usually around 30-50%.


Pros: Debt free in18-30 months for the same monthly payment. Most efficient way to pay off your creditors. Voluntary negotiation for your creditors. Recapture monthly payment that can be used for savings, investments, retirement.
Cons: Risk of creditor lawsuits. Settlement negotiations may be higher or lower and can not be guaranteed. Must miss payments resulting in temporary damage to credit score.

BE CAREFUL: Trying it yourself is seldom successful and could land you in court if you are sued. Do not hire a debt settlement company because they charge high fees and set you up to fail. Only hire an attorney who specializes in debt settlement and keep your plan within 2 years or less for best success.

Success Rate: 20-40% if attempted by consumer, 75-99%* if done by qualified attorney
Approx. Payoff:Monthly payment of $480: 1 -2 years (12 to 24 months). $10,000 - $14,000

6. Bankruptcy.


Bankruptcy offers legal protection from your creditors.

Pros: BK gives a fresh start for those who are financially destitute or overwhelmed with debt.
Cons: Complete default for your creditors. WORST thing for your creditors. Hard to get new loans. Can only file once every 6 years.

BE CAREFUL: Chapter 7 bankruptcy wipes out your debt. A Chapter 13 is a repayment plan and may be better accomplished with a debt settlement.

Success Rate: 100% if you qualify
Approx. Payoff:Costs for bankruptcy range from $2,000 - $3,000.

Frank Yan of Sacramento on The Dangers of Energy Drinks

Heart problems, hypertension, and diabetes? Sacramento businessman Frank Yan says to we should refrain from consuming to many energy drinks, which can cause a surge in our heart rate and in our blood pressure.

People with heart problems, hypertension, and diabetes might want to avoid drinking too much of energy drinks. While waiting at his appointment, Frank Yan visited his Sacramento massage therapist and read that studies have been made that these high octane energy drinks can cause a spike in our heart rate and blood pressure, that can increase the risk of anxiety, arrhythmia, and insomnia. It also mentioned that many possible negative effects even for healthy people who consume these drinks habitually. Even to those people that have no health issues can probably consume small amounts with out any problems, however to those whom consume large quantities, whether if they are in a single sitting or through out the entire day, are mostly more likely to encounter unwanted side effects.

According to what Frank read, every person who volunteered to consumed a n energy drink with about 360 mg of caffeine developed cardiac arrhythmia with rapid increased heart rate, insomnia, and anxiety.
Frank Yan also read that research found that the blood pressure of those healthy volunteers rose higher in those who drank Rockstars, Red Bull, Monster, that contained 80 mg of caffeine, than in those whom drank 80 mg of caffeine alone. It is the combined ingredients in these so called “energy drinks, rather than caffeine itself, that can cause temporary rapid heart beat, arrhythmia, and high pressure.

Frank used to consume these so called “energy” drinks right before his busy work schedule prior to work instead of coffee. He has now learned the dangers of the energy drinks and has discontinued buying them at his local Coscto in Sacramento.