Archive for August, 2010
Tuesday, August 31st, 2010
“Saving Tax” on your income is always a spot of interest for each one of us and why not when there is a legal way?
Saving Tax is easier under Indian Income Tax Act if one opts for the home loan. There are two sections of Indian Income Tax which allow you to avail this benefit.
1) Indian Income Tax Act 1961, Section 24 (B)
2) Indian Income Tax Act 1961, Section 80 (C..)
If proper investments are made then you can get a total deduction of Rs. 2.5 lacs per year. Under section 24, one can save up to Rs. 1.5 Lacs and under section 80 save up to Rs. 1 Lacs.
The Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. You can avail a deduction of up to Rs. 1,50,000 of you total tax liability, Also reconstruction or renewal or repairs is eligible for deductions under the said section.
The Section 80(c) of the Income Tax Act, 1961 allows you a deduction of up to Rs. 1,00,000 on the principal repayment amount.
Example Suppose your total taxable income is Rs. 6,00,000. Hence now your total taxable income becomes only (6 – 2.5 – 1 Lacs) and that saves a lot of money!
With property rates increasing at 300% an year, literally tripling your asset worth in an year, makes investment in property a nice avenue for “guaranteed profits” on investments. To make it even better you can save on taxes if you purchase a property for self — through the loan mechanism.
Saving Tax is legal and has never been easier.
Tags: Asset Worth, Benefit, Guaranteed Profits, Home Loan, Income Tax Act, Income Tax Act 1961, Indian Income Tax, Indian Income Tax Act, Investment Property, Lacs, Opts, Principal Repayment, Proper Investments, Reconstruction, Rs 1, Rs 2, Section 24, Tax Liability, Tax Loans, Taxable Income
Posted in Compare ISA | No Comments »
Monday, August 30th, 2010
Instant approval credit cards are those that generally do not require special requirements to be met in order to receive membership to the card. Often, these cards can be applied for, and approved, entirely online. There are many advantages to instant approval credit cards online that make them particularly attractive to many consumers.
An instant approval credit card online application is simple to complete. All of the necessary information required by the credit card company can simply and easily be placed into the online application form. Thanks to cookies, which saves information to your computer, much of the information can probably be added with the click of a button. Nothing could be simpler! With instant approval credit cards, there is no need to prove employment status and wait for it to be verified. There generally is no need to have a bank account. In addition, most instant approval credit cards do not even look at credit history in order to approve membership.
Many instant approval credit cards are secured credit cards. Secured credit cards are cards that the cardholder supplies money ahead of time to the card. These cards do not actually extend a line of credit to the cardholder. Instead, they allow the cardholder to access his or her own money with the ease of a credit card.
Secured instant approval credit cards provide a win-win situation for the cardholder as well as for the credit card company. The credit card company is happy because there is no concern about the cardholder borrowing money and failing to pay it back. Because the card is secured with the cardholder’s own money, there is no need to perform a credit check or enforce stringent approval requirements.
This is part of the reason credit cardholders enjoy applying for secured instant approval credit cards. There are no hassles and no worries about being denied approval because of poor credit. In addition, secured instant approval credit cards help the cardholder remain in control of his or her finances because he or she plans ahead of time how much money will be placed on the credit card. Paying toward the card ahead of time also ensures the cardholder will not build up a debt that is impossible to overcome.
There are also unsecured instant approval cards available to consumers. Some consumers are not interested in secured cards because there are many fees associated with these cards. Fees such as application fees, processing fees, annual fees, and monthly membership fees are commonly found with secured credit cards. In addition, there is generally a fee assessed each time the cardholder places more money on the card, which is referred to as “loading” the card. In addition, some people are not interested in secured credit cards because they are seeking a card that will provide a loan that they can pay back at a later date.
Unsecured instant approval credit cards are not as common as those that are secured, but they are available. These cards often do check an applicant’s credit history, but they are capable of completing this process quickly and efficiently, which allows them to still provide instant approval. Sometimes, these credit cards will only approve a small line of credit until they have had the opportunity to perform a more extensive credit check. After a few months of membership, instant approval credit cards following this practice will then extend an offer to the cardholder to increase the line of credit.
Instant approval credit cards are a convenient means for applicants to gain access to a wide array of credit cards, including business credit cards, cash back credit cards, and reward credit cards. Through the ease of online applications, the process could never be simpler!
Tags: Application Form, Approval Credit Cards, Approval Requirements, Borrowing Money, Cardholder, Cards Credit, Consumers, Credit Card Company, Credit Cardholders, Credit History, Employment Status, Hassles, Instant Approval Credit, Instant Approval Credit Card, Instant Approval Credit Card Online, Instant Approval Credit Cards, Instant Approval Credit Cards Online, Membership Cards, No Worries, Poor Credit
Posted in ISA Cash | No Comments »
Thursday, August 26th, 2010
It’s the day you’ve been waiting for the last two weeks… payday and the only time when your face lights up and you actually go to the office with a lot of wonderful, dreamy thoughts in your head – such as how fast you’ll be able to bolt out of the office and get yourself down the to nearest mall and you can already smell the Caff Verona you plan on ordering at Starbucks. Either way, you seem compelled to impulsively spend all of that hard-earned cash on something that in all likely-hood you can do without. Like that dress you’ll probably wear just once or the Egyptian silk sheets that you’ve been drooling over ever since you noticed that Jessica Simpson on Newlyweds sleeps on in luxurious comfort. Never mind they are actually worth fourteen hundred dollars… but like you always tell yourself – you deserve it. Besides, what’s the harm in rewarding yourself for a job well done? You deserve some pampering too.
You may even find yourself making plans at some luxurious spa, to sample of their relaxing (not to mention, extremely costly) facials, massages or treatments. After all, you work hard and so you’ve definitely earned it since you’ve been stressed out all month long from your hectic schedule and tight deadlines.
On the other hand, have you ever even thought of saving… even occasionally putting a portion away for a rainy day? Have you thought about you future? And if it actually involves those Egyptian silk sheets that you just purchased or the designer coffee that you simply cannot seem to get enough of – is it really worth it?
Unfortunately for too many, sooner or later reality sets in and when it does it hits them like a Category 5 hurricane and they wake up they realize (hopefully not too late) how deeply they’ve buried themselves in an oppressive amount of debt. And they also realize that they have absolutely nothing to fall back on in order to get themselves out. You could simply hand in the towel and declare bankruptcy (many do) however, an alternative, less stressful and smarter way to go, is to at least initially, look into getting a debt consolidation loan.
The thought of a debt consolidation loan may not be all that enticing to most of the debt saddled, but then again what’s the alternative – bankruptcy or paying minimums on your credit cards at 20% interest for the next 20 years? Unfortunately for those of you who have nothing in your savings or other assets to tap into, it may be your best option and perhaps the first really smart financial decision you’ve made in quite awhile.
You are clearly aware that a ton of companies offer debt consolidation loans, just the fact that you are reading this article attests to the fact that you’ve done some type of internet search related to debt or debt consolidation. You just have to be honest about your finances or whatever it was that you were doing with your money (when you still had some) so that whomever you decide to go with to try and secure that debt consolidation loan will be able to provide you with an accurate scenario of your financial present and future.
The past is… as they say, history. You really have no choice but to simply move on, walk away from your past mistakes and hope that you’ve learned something useful. And then, incorporate those lessons into your future dealings with money and hope against hope that your debt consolidation loan will be approved so that you can take the overwhelming burden of debt you’ve saddled yourself with and leave it far behind.
As you search for a debt consolidation loan make sure you do your due diligence by shopping around and asking questions whenever you feel lost by the “financial jargon” or the whole process in general. If you do your part, you’ll greatly increase your chances or working with a reputable company that’s not out to take advantage of your current poor financial situation.
A final bit of advice, virtually all Loan Officers work on commission and so it’s in their best interest to… 1) Make sure you get the loan and 2) Charge you the highest interest rate possible and the highest possible fees and still make the deal. That being said, don’t ever take the first quote you get for rate and closing costs as the best deal you can get because it very rarely is. While shopping, make sure the companies you are working with know that your shopping around tell them straight out that you will give your business to whomever can come up with the best deal and who’s is upfront and honest from the get-go.
Never forget that you are in charge (regardless of your current financial state) and if you don’t feel comfortable with your lender or what’s being presented then simply move on until you find someone who treats you with the respect and dignity you deserve.
Tags: Bankruptcy, Category 5 Hurricane, Coffee, Debt Consolidation Loan, Debt Loan, Dreamy Thoughts, Hectic Schedule, Jessica Simpson, Job, Luxurious Comfort, Luxurious Spa, Massages, Newlyweds, Rainy Day, Reality Sets, Savior, Silk Sheets, Starbucks, Tight Deadlines
Posted in Savings Accounts | No Comments »
Thursday, August 26th, 2010
Are you thinking of taking out a personal loan! If the answer is yes then you have to ask yourself some questions first. This will make sure that the loan you choose is the right one to suit your needs.
Below are some of the most common questions you should be asking.
Do I really need a personal loan?
You have to ask yourself if the purchase you are about to buy is necessarily, as you may have this debt for a year or two.
Can I afford to takeout a personal loan?
This is properly the most important question you will have to ask yourself, debt advisers says that a non- mortgage monthly repayment debt should not be anymore than 5% of your net income. This is the total you walkout with after tax, say you take home 2000 a month then the most you should be paying back is about a 100 a month.
How much should I borrow?
Most lenders offer a cheaper APR on a larger loan; each lender has their different levels of interest rates and will change them with accordance to how much you borrow. Sometimes its best to up your loan just a small bit to get the best interest rate.
For example maybe you only want a loan of 4.500 your APR maybe 10.5% but if you go for a 5,000 loan the APR drops to 9.6%. So over all you may end up saving by taking out a bit more just something to watch out for.
Where do I go for a personal loan?
Most people think of the bank first nothing wrong with that, but know there are so many places to look. Everywhere you turn you see adverts for loans including the newspapers, TV, mail, supermarkets and the Internet. The competition at the moment from the lenders is great; they all want your business so there are some great deals on offer. You just have to look for them take your time and you are sure to get the best deal around
Will I be covered if I become ill or unemployed?
Most lenders will have PPI (payment protection Insurance) please check the policy carefully and ask questions. As not all these policies will cover you and they can be expensive, sometime its best to shop around for a different policy.
Can I pay my loan off early?
Yes you can and unbelievably 60% of people do, again check with your lender as some add on penalties for paying off your loan early. Some lenders charge two or three months interest unbelievable but true.
What happens if I get turned down for a loan?
First check why is it because your credit rating is poor or is it because youre asking for too much money. If your income is low you may be asking for too much, if this is the case reduce your request. If its poor credit rating check out why and try and sort that out first, before you reapply
Hopefully these answers will help you, just remember workout what you need the loan for first, then make sure you can afford to make the repayments. Take your time when looking for your personal loan, as there are some great deals out there at the moment.
Tags: Best Interest, Debt Advisers, Great Deals, Helpful Hints, Insurance, Interest Rate, Interest Rates, Lenders, Net Income, Newspapers Tv, Payment Protection Insurance, People, Personal Loan, Personal Loans, Ppi, Supermarkets, Tv Mail, Walkout
Posted in ISA Savings | No Comments »
Thursday, August 26th, 2010
Budgeting money is something of a neglected necessity in the modern world, with so many people lured into spending regardless of their financial situation. It has become almost the norm to spend each month more than is earned, often without even knowing it. This has led to severe debt problems for millions of people in the US and UK in particular, and an encouragement and acceptance of ignorance in personal money management.
Despite all the bad debt write offs, the banks and other lenders are happy with the situation. They build the risk factor of bad debts into their interest rates to ensure overall profitability, so borrowers are paying for the collective lack of ability to budget properly. Yet, budgeting is easy, so it is baffling in some ways that many people are unsure how to budget money.
Being able to budget your own money is a bit more than listing your incomings and outgoings each month, quarter, year, or whatever period you need to budget for. Yes, you must go through the listing process, and then keep an eye on both sides of the equation constantly. But there are other factors in home budgeting, and that is what this article is about.
The Greatest Incentive
To encourage yourself to budget money is important, as without the motivation, you will probably not budget that well. What incentive can there be to having a home budget and sticking to it? The answer is actually quite simple. Nobody becomes rich by spending more, or even the same, each month than they receive. Wealth grows from surplus; that is, the surplus left over at the end of the month after you have completed your spending.
Recognizing this can provide you with a kick start in wanting to learn how to budget money, and then put that learning into practice. Once you start to see those surpluses build, your confidence in wealth building, and incentive in budgeting, will grow.
Keeping Detached
It is important when budgeting to maintain a detached view of the figures. Think of yourself as a finance professional helping a consumer set and manage a home budget, and set yourself aside from any emotions that may seep out during a review of your budget. Some parts of the budget can arouse emotions, and thus distort sensible decisions. Things like cutting out a family holiday or weekend trips, that new bike for your son or designer outfit for your daughter, can be emotional sparks. It is important not to allow those sparks to set light to your well drafted budget.
Be Open
If you have a family, the household budget affects those closest to you. The budget is a family affair, and it does help to talk openly about it with your spouse and children who are old enough to understand. Children may not like sacrifices, but they will understand eventually. It can be an important part of their education if you involve them. If you can give them some incentive, too, such as building their own savings scheme into the budget, then they may even start to enjoy it and truly see the benefits.
Ignore Peer Pressures
Your personal budget is simply that, personal. It is therefore something you should see in the context of your own circumstances, not somebody else’s.
To budget your money effectively you really need to be able to ignore peer pressures that may force you into unnecessary or unwise spending. Just because your neighbour or best friend is having two foreign holidays this year does not mean you need to also. Just because your brother or other relative has a new home cinema system does not mean it is essential for you too.
If you can let peer pressure run off you, like water off a duck’s back, then you have made a big breakthrough in learning how to budget money.
Those are just a few of the other factors that come into play in learning how to budget at home, but they are all worth considering as you focus on your incomings and outgoings while home budgeting.
Tags: Bad Debt, Bad Debts, Borrowers, Budget Money, Budgeting Money, Debt Problems, Encouragement, Financial Situation, Home Budget, Home Budgeting, Interest Rates, Kick Start, Lenders, Motivation, Norm, Personal Money Management, Profitability, Risk Factor, Surpluses, Wealth Building
Posted in Savings Rates | No Comments »
Monday, August 23rd, 2010
Getting a job and not spending all the money each month is the slowest, hardest, and least efficient way to build up a big pile of money. Saving money is a worthwhile net worth building activity, but it doesnt offer much more than that unless your goal is only to have a little cash at the ever-increasing age of retirement.
This is because wages are the most heavily taxed source of income. Income taxes (federal, state, and social security) choke off about 35% of this earned income before you ever see a dime. And second, your income is capped by the number of hours that you can physically work in a week; even if it pays well. Ownership is the financial goal that we all have; owning investments that will passively pay us interest and dividend checks. But there are two wildly different paths to get there. One path is very slow and slightly uncertain, and the other path is much quicker but more uncertain to accomplish.
The fastest and most efficient way to build a pile of money is through entrepreneurial activity. This way, you can get into a position of ownership without buying it, because you are creating it. You bypass the taxation tollbooth of wage-earners, and the limitations of your salary and time. The goal is to create your own piece of equity that gives you a source of income that you control. Now before you start rolling your eyes that this is too risky, too hard or you dont know how to do it, let me give you some ideas to help reduce your hesitation.
Maybe it isnt your money (borrowed), or your expertise (a partners), or skill (hired, outsourced); but if you lead the team you can create your own piece of the equity. You can start out on a tiny scale; I am acquainted with someone that earns over $100,000 with a dog walking service. She has other people walk the dogs, so that she can focus on marketing and managing her walkers. Dont you think that you could think of a dozen similar services that might be needed in your area?
It is mentally challenging to start an entrepreneurial activity, but more importantly, it takes money, knowledge and persistence. It takes knowledge because there is always going to be trial and error in refining your business model; and it takes money because you need enough money to find a successful business formula that pays for itself before you run out of money. It takes persistence because obstacles are natural when creating or maintaining any business activity.
There are zillions of areas to become entrepreneurial and build up equity, but here is another idea that nearly all communities offer; I bet that there are at least three successful residential home rehabbers working your community. Find them and convince one of them to help teach you in exchange for being a free assistant. And when you strike out on your own and need additional help, offer to give him or her a percentage of your profit.
I want to show you an example of entrepreneurial persistence, even though it uses real estate again. There is a giant mall being built at a nearby city. I was dropping off a friend that lived there and he said that it was a great story about obstacles. The city didnt want a new mall to take business from the downtown strip, so the developer moved the project outside of the city limits. Then the state government said they couldnt allow it without a larger highway exit, and they didnt have enough money to make a highway exit. So the developer raised the money and built the highway exit himself. The point is that no matter how insurmountable an issue first appeared, the developer was undeterred from reaching his goal.
Developing a side business to ramp up your income is the most financial rewarding activity you can undertake. Imagine if you took half the effort you put into studying for school and put that into business building over four years Id suspect your results would be far greater than setting aside some of your paycheck each month.
Tags: Different Paths, Dividend Checks, Entrepreneurial Activity, Financial Freedom, Financial Goal, Getting A Job, Hesitation, Income Taxes, Money Saving, Pile Of Money, Salary, Saving Money, Similar Services, Slow Path, Social Security, Taxation, Tollbooth, Wage Earners, Wages, Walkers
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Thursday, August 19th, 2010
I Want To Catch Up on My Retirement Planning What Should I Do?
Good question and even better, youre thinking in the right direction about your future which is someday retiring. If youre one of those people who havent saved any or very much money for your retirement, its never too late for you to start now! Its important that you do start and soon. It doesnt take long for age to slip up on you fast if you know what I mean! So, just get started on your retirement planning now while youre thinking about it. You may want to consider some of these tips and information to get you started:
1) If the employer you are working for offers a 401K plan wherein you contribute a percentage of your earnings towards retirement, consider signing up for this plan! In most instances, the employer may match a percentage of the contributions you make to your 401K account. Your contributions can be made on a pre-tax basis which will help your money grow faster in your account.
2) You may want to consider taking a second job to add more income for your retirement. This will assist you in increasing the amount of money for your retirement fund. If youre able to fit a second job into your schedule, make sure this would be feasible for you and your family without causing problems.
3) Save more of your money by cutting back on some of your expenses. You may want to reduce the number of times you eat out, go to the movies, shop, and any other areas you can cut back on to save towards your retirement.
4) Consider saving your change! Thats right, save your change. You would be surprised at the amount of money you can accumulate in a small amount of time by saving your change. Your change could be set aside for your retirement fund. So, start putting your coins away for your future!
5) Reduce or eliminate your spending on your credit cards. The less you pay on your credit cards, the more money youll have to save towards your retirement. So, if you can pay cash for that item you need to purchase, do that instead of charging it to your credit card. Youll not only save yourself interest charges, but, youll have extra money to put away for your retirement.
6) If you have a home and are using it as a cash machine or atm by taking out your home equity via loans or a credit line, stop what youre doing! Your home is one of your largest investments and will most likely be a retirement vehicle for you. Youll either want to have your home paid off prior to retirement or be in a position to sell your home to obtain the equity to use as retirement income. If you have your home equity tapped out, then you will not be in the position during your golden years to enjoy your retirement. Youll probably be still paying a mortgage that you may not be able to afford and will not have much money in your retirement fund.
Its better late than never when it comes to starting your retirement planning. So, go ahead, start working on catching up with your retirement planning today, youll be glad you did!
Tags: 401k Plan, Amount Of Money, Amount Of Time, Coins, Credit Cards, Earnings, Fit, Good Question, Instances, Ite, Much Money, Retirement Fund, Retirement Plan, Retirement Planning, Right Direction, Second Job, Tax Basis
Posted in ISA Cash | No Comments »
Wednesday, August 18th, 2010
Are you tired of fighting high credit card fees? Why not lower your interest payments by transferring your balance to another card. Balance transfers are one the smartest and easiest ways to reduce credit card costs. Just be sure you understand the terms and conditions of the new card, so you can maximize your savings.
Before you run out and switch credit cards, consider whether you want to keep your current card. If you do, simply ask for a lower interest rate. Tell your credit card company you’ve found another card with a much lower rate and you’ll have to transfer your balance if they can’t cut you a deal. However, be prepared to do so if they refuse your request.
Why Use a Balance Transfer?
Balance transfers can provide card holders with a number of advantages. Transferring balances to a lower rate credit card can drastically reduce your interest rate and fees. Credit card companies charge varying interest rates on balance transfers and purchases. The most common rate is 0 percent for six through 12 months.
For example, the Chase Ultimate Rewards MasterCard and Citi Platinum Select MasterCard charge no interest for 12 months on balance transfers and purchases. The Discover Platinum Card and the Hess Visa from Chase drop the introductory rate after eight and six months, respectively.
Some cards link the introductory annual percentage rate (APR) to billing cycles. The GM Card and Fifth Third Bank Cash Rewards MasterCard, respectively, charge 0 percent APR for the first six and four cycles.
Transferring balances can also give you access to more perks. For example, you may be able to get a new card that has no annual fee, a longer payment grace period or cash back on purchases and other rewards. Some cards also offer car rental insurance, identity theft protection programs and money saving discounts.
How to Transfer Balances
Credit card companies commonly use low interest rate balance transfers to attract new customers. There are three main ways to transfer the balance on a card. One way is by simply filling out the paperwork provided by your new card issuer. Or you can contact the credit card company that you want to transfer a balance to and make arrangements for a balance transfer.
You can also shift balances by writing balance transfer or convenience checks. These simple checks look and act like regular checks. You simply write a check for the amount of the balance transfer and send it to the company you want to transfer a balance from. Some checks have an expiration deadline, so make sure you use them within the appropriate time frame. If you don’t, you’ll be charge the regular interest rate set for your card.
Regardless of which transfer method you use, you can only transfer as much as your credit limit on the card you are transferring allows.
Transaction Cost and Other Fees
Banks generally treat balance transfers like cash advances and have similar transaction fees. There’s no fee for balances transferred in response to special offers. But for Citi Platinum Select and many other companies, the transaction fee for balance transfers is 3 percent of the amount of each balance transfer, with a $5 minimum and $50 maximum. Keep in mind that a small amount of funds may not be worth transferring because the transaction fee may outweigh your potential savings.
In addition to standard transaction costs, banks also charge special fees that can take you by surprise. Some of the most common special fees include:
Late fees – Some banks wait a few days before assessing a late fee, but many impose it the day after the payment was due. Companies either charge a flat fee, such as $10 or $15, or a percentage, such as 5 percent, of the minimum payment due. To avoid late fees, mail off your payment so it arrives in plenty of time before it’s due. If you pay your bill at the bank’s branch or ATM, find out how long it will take to process your payment. Sometimes payments made at a branch or ATM aren’t credited for a few days.
Over-credit-limit fees – Most cards assess a fee if you charge more than your credit limit. These fees are charged each time you go over your limit, so you could be hit with several of them during the same billing period. Banks typically charge $10 or $15 for this fee or up to 5 percent of the amount you’re over your limit. These fees are in addition to interest charges.
Lost card replacement fees? If your card has been lost or stolen more than once and you need a new one, some companies will charge you for a replacement. These fees are range from $5 to $10.
Making Payments
After you transfer balances, be sure to make all your payments in full and on time or you’ll automatically be hit with higher fees. Generally, there’s no grace period for repaying balance transfers, so interest will accumulate immediately. (No interest will actually accumulate if you have an introductory 0 percent APR.)
When making payments, it’s important to understand that the payments you make will first be applied to balances with lower or promotional balances and then allocated toward higher APRs. That means you’ll be paying down 0 percent balance transfers before you even touch the balance on regular purchases which can be charged at a rate of 9 to 18 percent. As a word of advice, consider using a different card for your regular purchases and pay off the balance each month. Keep your balance transfers restricted to a separate card.
After the Promotional Honeymoon Ends
You need to keep a close eye on the promotional period. As soon as it expires, normal interest rates will apply. The standard variable APR for Citi Platinum purchases (8.99 percent) will be applied to all remaining purchase and balance transfer amounts. Likewise, the standard variable APR for cash advances (19.99 percent) will be applied to all remaining cash advance amounts. If you default on Citi Platinum’s card agreement, the company can immediately increase the APR on all balances including any promotional balances to a variable default rate of 28.99 percent.
Your post-introductory APR will depend on your credit history. If this interest rate is significantly higher than the rate on your old card and you have a remaining balance, you’ll wind up losing money. Of course, you could always transfer your balance to a new card with a lower promotional rate. Just be careful not to entangle yourself in a vicious cycle that could backfire later
To Compare Credit Card
http://www.bestcreditrates.net
Tags: Annual Percentage Rate, Annual Percentage Rate Apr, Balance Transfer, Balance Transfers, Billing Cycles, Car Rental Insurance, Card Balance, Cash Rewards, Citi, Credit Cards, Discover Platinum Card, Fifth Third Bank, Gm Card, Grace Period, Hess, Identity Theft Protection, Introductory Rate, Lower Your Interest Payments, Mastercard Charge, Transfer Balance
Posted in ISA Savings | No Comments »
Monday, August 16th, 2010
I dont know about the rest of the world, but there have been times in my life when I have felt as though I was one paycheck away from serious financial peril. Too bad Superman doesnt come to the rescue for matters such as this. One of my greatest fears has been losing a home because I lost my job or had an injured child (or injured self) that required me not to work for an extended period of time that exceeded my savings, or any of nearly a thousand reasons. The recent movie Fun With Dick and Jane struck a chord of sheer terror in my heart because bad things sometimes happen to good people. Good people have their lives ruined through circumstances that are completely and totally beyond their control.
With a foreclosure, there really isnt a bad guy. There is no mad banker waiting greedily in the wings to throw your family out on the street. The truth is most of these people have a great amount of compassion and come across as harsh because the decision to foreclose generally isnt up to them. Besides we signed on the dotted line when we decided to purchase a home. A home is, for most people, the single largest investment we make in our lives. The process of foreclosure can be frightening if you are armed with knowledge; it is absolutely terrifying if you are uninformed throughout the process.
Here are some things you should know about the foreclosure process.
1) First of all, a home does not go into foreclosure until you have become 3 months behind on your payments. Of course the goal is to never get behind at all, but we all know that stuff sometimes happens and some things are beyond our control. This means you do not have to exist in constant worry that if you are a few days late on your mortgage payment for a couple of months that the sky will fall. This is unlikely to be the case unless you are seriously behind. Be proactive and don’t let yourself get that far behind, or start working with the bank beforehand if you know it’s inevitable.
2) Once you are three months behind you will either go into what is called judicial foreclosure or non-judicial foreclosure. In a judicial foreclosure, a lawsuit is issued to the homeowner who can elect whether or not to respond. If the owner doesnt respond the home is auctioned off to the highest bidder unless the bid doesnt exceed the total amount owed on the home. In a non-judicial foreclosure the lending institution would issue a statement of default and notify the owner of its intent to sell the home. The owner at this time can possibly work to arrange an agreement and payment plan that is acceptable to the financial institution, or file a chapter 13 bankruptcy in order to stop the foreclosure. If this does not happen then the property will be sold.
3) Here is where it gets tricky. If the sale of the home doesnt result in a sum of money that is at least equal to the amount owed on the home, the original homeowner is responsible for the difference. Failure to pay the difference can be just as detrimental to your credit as the foreclosure itself.
The process of foreclosure is not fun; it is not meant to be. Dont overextend yourself credit wise. Buy a house you know you can afford and live below your means.
Tags: Circumstances, Compassion, Dick And Jane, Dotted Line, Fears, Few Days, Financial Peril, Foreclosure Process, Fun With Dick And Jane, Mortgage Payment, Paycheck, Period Of Time, Proactive, Rest Of The World, Sheer Terror, Sky, Superman, Terror In My Heart, Wings, Worry
Posted in Savings Rates | No Comments »
Sunday, August 15th, 2010
Most people have taken out plenty of loans and other forms of credit, from various sources over the years. These could include student loans, credit cards, store cards, a bank overdraft, car loan, goods bought on a buy now pay later basis. All of these sources of credit will have different terms depending on who you borrowed from and how much. One important factor with all these loans is that they will all have different rates.
Rates and APR
The rate you repay your loans at is vitally important. Many people underestimate the influence the APR will have on how much they repay for a loan; the difference can be astounding. The bottom line is that you want your interest rates to be as low as possible.
If you have many different loans and they are all at different rates, and some of the rates are very high, you may consider debt consolidation. This is taking out a new loan that will provide you with enough cash to pay back all your other loans. Then the only loan you have to worry about is the new debt consolidation loan. The main advantage of this is that you may be able to borrow the consolidating loan at an interest rate substantially lower than what youre paying for your other loans. This will mean that all your monthly payments will be replaced by one reduced payment, thus saving you thousands.
Lift Those Weights!
Another advantage of debt consolidation is the stress it can take off your shoulders. It is sometimes very difficult to keep track of all your various payments, when theyre due, how much theyll be and whether or not youll have enough to cover them. This may lead to you frequently missing payments and incurring further late fees. A debt consolidation loan will remove all this hassle, as you will now only have one loan to repay.
Words of Caution
The main drawback of a debt consolidation loan is that the new loan is likely to be secured over your home. While your other loans will likely have been on an unsecured basis, you will be making them secured over your home. If there is a chance that you will not be able to meet the repayments, then you are putting your home at risk. This is highly unadvisable. Unsecured creditors can ultimately make you bankrupt and take your home but the process is lengthy and can often be avoided. If the loan is secured there is a much greater risk that your home will be taken to pay off the loan.
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