Revolving Credit

It has come to our attention that Mrs. Ingold has secured a Line of Credit to pay for the roofing project because she was unable to secure a loan with reasonable terms (probably because our building’s finances – which she refuses to let any unit owner look at – are less than stellar.) This was done without any discussion with the board, and is likely to be brought up in the board meeting tomorrow (Thursday September 1 at 8pm) for the rubber stamp board members to work their magic on.

For those of us who do not know what a line of credit is, it is similar to a credit card with revolving interest. This means that the interest is compounded, and if only minimum payments are made, much like a credit card, we can possibly spiral into unending debt.  Often one is required to provide collateral. It would be interesting to know what collateral Mrs. Ingold has offered the bank to secure this line of credit. A line of credit is a terrible idea, and is a big reason for the mortgage crisis as it enables people to write checks they can’t repay.

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