The Kokomo Tribune from Kokomo, Indiana • Page 4

Business-labor 4 Kokomo (Ind.) Tribune Thursday, June 3,1993 Loans for fun worries Congress By Pamela Reeves Scripps Howard News Service The number of Americans using home equity loans for vacations shot up last year, an indication that more people are willing to use these tax-advantaged accounts for pleasure. Real estate A survey of home equity loans for the Consumer Bankers Association showed 4 percent of people with home equity lines of credit used some of the money for vacation last year, double the percentage in 1991. Even more surprising, 7 percent of those with closed-end loans borrowed for vacations, up from just 1 percent a year earlier. (Closed-end loans are essentially second mortgages, with a set amount borrowed all at once and paid back over a set time.) The idea of people borrowing against their home to finance a week in the sun upsets many in Congress who didn't intend to provide tax deductions for such fleeting pleasures. They worry that some homeowners could lose their homes through such spending if a setback prevents them from meeting the monthly payments.

But since the tax laws changed in 1986, homeowners have learned that home equity loans provide one of the few deductions left to the average person, so they're plunging ahead. As a result, debt consolidation is now the main reason borrowers give for taking out home equity loans, both open and closed-end, with home improvements a distant second in both 1991 and 1992. About 10 percent of borrowers use home equity lines to pay for cars and trucks instead of taking out auto loans. The advantage is that the auto payments are tax deductible. The disadvantage is that if you lack financial discipline and have the option of interest-only payments, you can end up paying much, much more for your car overtime.

A steady 7 percent to 10 percent use home equity credit for college tuition and other educational purposes. In some cases, this may be the cheapest way to borrow, but it pays to look closely at all the education loans available before making a decision. Studios playing with new games Consumer Electronics Show opens ByEvanRnmstad AP business writer NEW YORK (AP) In a room 30 stories above Broadway, the people who create shows for MTV, Nickelodean and Showtime can spend their breaktime playing the latest electronic games. Their bosses, who bought them new personal computers and game machines this spring, don't mind if those breaks extend from minutes to hours. The reason: the networks' parent company, Viacom Enterprises, has entered the multimedia business and is eager for the creativity of its 400 TV producers, artists, writers and designers to spill over into lucrative new products.

"We have the advantage of having people who think about a consumer all day long, and they are very creative," said Michele DiLorenzo, senior vice president of Viacom New Media, the compa- ny's new interactive software division. "Now it's about what else do we need to give them to really let them function in this (multimedia) world." Viacom, which purchased a video game developer in April, is one of several dozen show business companies that have plunged into the multimedia niche of the computer business in the past year. Along with movie studios including Disney and Paramount, Viacom is presenting interactive products at the Consumer Electronics Show, a major industry convention that opens today in Chicago. "The studios are becoming game companies as well," said Angie Niehoff, vice president of Capstone Software in Miami, which has developed successful computer games from several movies and TV shows. About 40 multimedia companies will display products at the trade Kitty Lippincott, left, a Nickelodeon marketing employee, gets instruction (AP photo) show, double last year's number.

And the number of video game publishers will jump 50 percent to about 140, organizers say. "It's one of our major growth areas," said Cynthia Upson, vice president of the Electronics Industries Association. "An entire building is filled with CD-ROM, multimedia type of products just coming onto the market. These are things that are likely to be ready for Christ- mas. The show's highlight will be the introduction of a powerful game device from 3DO a Silicon Valley start-up backed by Japan's Matsushita, Time Warner and Three are vying for UAW Local 292's leadership By DAVE PHILLIPS Tribune staff writer United Auto Workers Local 292 President Fred Gross will face local trustee Glenn Rodgers and Coy Riley for re-election when the local holds triennial elections next week.

Gross is completing his first term as president of the amalgamated local, which represents about 6,000 hourly employees at Delco Electronics Corp. and 40 workers at Restaura Food Services Inc. The local, representing the second-largest bargaining unit in UAW Region 3, covering Indiana and Kentucky, will hold triennial officer elections June 10. Rodgers is currently serving as a local trustee. Riley is a pipefitter at Delco Electronics Corp.

In other races, incumbent Harold Thurmond will face Pat Hardin and Lois Pizzuto to earn a third term as vice president. Recording secretary Midge Collette will be challenged by Linda Hurd for re-election. The local's recording secretary, Stephen Newton, is running unopposed. For shop chairperson of the local's Delco bargaining unit, incumbent Tony Long will be challenged by Norm Accord, who ran unsuccessfully last year for the region's director post. Incumbent Lisa Rink will be chal- "225 S.

452-0541 Gift Certificates A vailable WASH WAX Vans Black Cars Extra 44.95 Vans Black Cars Extra Gift Certificates Available Offer Good Thru lenged by Larry Goodrich in the race for shop chairperson over the local's Restauraunit. Local 292 members will also be electing three trustees and eight zone shop committeepersons. Make tracks over to these great savings! Siamese Kittens ...79 ra Children's Pet Books Off Lambert Kay $, Cat Dog Shampoo Off Small Animal 2 oz. Water Every WednesdayN Fish GOLF EQUIPMENT LIQUIDATION SALE Currently OH List Price Special: Extra Off all Golf Clubs and Bags Sat. June 5 Sun.

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As ITT begins closing branches, many customers may be left without a consumer loan source. That's why The Associates is making you a cash offer. You'll receive $10 just for bringing In your latest ITT loan statement or payment coupon. Then, after you refinance your balance Into an Associates loan and make your first three payments on time, we'll give you an additional $25! A We make your personal loan even more personal, with friendly professionals ready to assist you through more than 500 local offices. We've been making loans that are as individual as you are for 75 solid years with fast answers, flexible terms and payments that fit your budget.

UL. Come see for yourself. You'll thank us for convenient service and extra cash, right in your neighborhood, at The Associates. And we'll say, "You're welcome!" All loan approvals subject to our customary underwriting and credit evaluations. THE ASSOCIATES, Eastway Plaza, ParkwavWest Lafavetle IN 47904 (317)447-6377 8101 Washington Street East, Indianapolis, IN 46219 (317)897-4744 6060 IS East Kokomo IN 46902 (317)453-4500 224 Walnut Muncie.

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