This is what the debt problems involved.

There are many problems caused by debt. Once people know you are in financial difficulty, they all turn against you and you feel more frustrated. Your family could probably misunderstood your situation, leading to chaos that could break your marriage. You can be crazy, since almost all the profits are used to pay the bills.

As time goes by, life is hard and you're finally forced to bankruptcy or even consolidate your debts. On the other hand, your creditors will not be a peace of mind. Some of them threaten to prosecute you, others insult you by phone or even sending warning letters. Agency in May also use abusive language at the same time, threatens to take action. They can easily be misleading, particularly when you do not know what your rights to your creditors.

Sometimes, when problems are too much to bear, most people are bad virtues such as alcoholism, drug abuse or theft. What you can easily lose your job or sell some of your assets and all the abuses of money. May your actions affect the lives of your children, especially if you are the only source of income.

Although you may obtain loans debt consolidation
Interest May be raised to increase your bills. These businesses will be made and the profits of their business without worrying about your bills and what time you retire. The best solution to all your problems is that a repayment plan through a program of free counseling.

Read More

How to release your debt?

You can blame regardless of your financial situation. If your bills were consolidated and you're still making the payments, make sure not to add new accounts. The accumulation of new bills, the worst mistake you can do, because you can not progress. Always plan your budget and use the rest of the money to pay your bills.

After authorization of the payment of your credit cards to inform the concerned businesses to close your account you do not now. The key to your life and living a debt free person. Visit the credit card Counselors advice to prevent other bills in the future and the knowledge of how and when the use of credit cards.

Prepare a payment plan and organize how to clear the bill. Double your monthly payments are possible if you are able to invoices faster. Avoid luxury and instead of adding that the money from your savings. Reduce your spending and buy only what you need on a monthly basis. Have your own life and care not to imitate what others do, because they can be misleading.

Your monthly budget may never be higher than what you deserve is to prevent other financial problems. Do not forget the rest of the money or a better use that will lead to more revenue. Your income should be your guide for the budget to promote proper use of your finances. Live a simple life does not mean that your arm, thus leaving a life that you can afford at any time if you really want is a free person.

Read More

Secure online shopping.

Despite the carnage that the credit crisis has wreaked on the High Street, online retail, demand remains strong and growth in 2009 if economic conditions remain weak and competition among online retailers for Web publishing heated.

A first indication of this anti-cyclical trend is the growth of online Christmas, in response to the beginning of January sales and discounts available online from the street of traditional suppliers. Tighter credit also has the power to increase Mers Scam Internet like never before. As Scam Seas are becoming more sophisticated and more people are desperate for ways to make money during the recession, consumers who buy online should be more vigilant and cautious of the traps that exist. IT security expert, who often shops online, I am one of the few security measures basic Internet and "must do" that we in the industry of IT security to ensure that we secure online shop error is to avoid the many scams Seas, the exploiters and opportunists, all ready to draw! The twelve golden rules for safe online shopping:

Rule number one: most uses Malware are known problems with software and operating systems. The hacker, or code writer, is to rely on people who are lazy and not keeping systems up-to-date. For this reason it is very important to your anti-virus software updated with the latest signature files (which usually happens automatically in the background with most anti-virus) and system updates Microsoft operating. This reduces the chances of malicious code or registration key software on your computer without your knowledge, the transfer of your data to fraudsters on the Internet.

Rule two: Never go online without personal firewall is enabled. This personal firewall adds another layer of protection for the PC by stopping unknown connections to the PC. The personal firewall in Windows XP and Vista is widely regarded as insufficient. They can check the data on the PC - a new pattern - but they can not monitor outbound connections. If your PC is infected with malicious software, you can send spam or other data on the Internet without your knowledge. By adding a personal firewall can stop unwanted and outgoing connections. There are a number of personal firewalls on the market - both free and paid. Some anti-virus personal firewall in their products.

Rule three: Do not choose the "Remember my password" when registering your password is then stored on the PC, often in plain text, and the first thing you send a fraudster. Some malware is designed and written to pick up your PC for these passwords. In addition, if you use a laptop is lost or stolen passwords with it .... go

Article Four: Make sure your credit cards are registered with your credit card online security services such as Verified by Visa and MasterCard Secure Code. "

Article five: Use one card for online purchases, maintaining a limit on the card as low as possible, or even a top-up card for online shopping.

Six line: Make sure you use a credit card and not a debit card. The bank offers a credit card with security assurances that are not with a debit card. So do not be tempted to make your shiny new Platinum card at an online store.

Article Seven: Check your statements regularly and if there is a sign of illegal activity, report it immediately.

Eight line: Always check for the padlock in the bottom right of the browser (using Internet Explorer) to enter into the details of your card. Verisign has recently added the green bar to display a Web site with an Extended Validation certificate - which means that the encryption key is strong, and the site for external validation.

Article new: Make it a habit to check the privacy policy of the site for more information on how your personal information will be used and only a minimum of personal data, especially in the online forms.

Rule Ten: Never Shop sites to click on links in the marketing of unsolicited emails (SPAM).

Eleven line: It is important to remember that you can do everything well, but the seller can do something wrong. A seller may store your credit card details on a single server. This creates a large target for an attacker in order. If the seller has violated the site, your information May be affected. The payment card industry has recently published its own standards of data security to try to protect this data at rest. But the standards are not yet fully implemented and the risk for all credit card transactions, not only through the Internet.

Twelve line: Finally, do not rely on previous testimony from customers - they are part of the marketing organization and not necessarily fact. The golden rule of negotiation is always the same as it ever was .... if the offer seems too good to be true, it probably is! These are the rules that I am many of my colleagues. Shopping on the Internet is more popular scams with increasingly sophisticated, so make sure you are not caught per trap in dangerous territory. By following these rules, you can log in and access to the Internet for bargains ... safe! Good luck and have fun.

Read More

Can a Debt Collector Take the family patrimony?

Sometimes debt collectors are harassing debtors and can do anything just to satisfy his creditors. They are very sensitive and can easily go wrong. Be careful and stay strong when you face. It is important to a statement from the family home for all your assets protected. This will ensure that family assets are sold to pay the bills.

Tape any abuse of the language of debt collection and use as evidence when you decide to take legal action. They should not cry for all that you owe money. Some of these people may even be a false accusation on you, more bills you owe. You must remain strong and when they provide such accusations, he claims that the evidence of their accusation.

It is important to keep all your files bill for future use and to avoid overloading the creditors on your payments. If the collector threatens to take you to court to take immediate action, because they have no right to do so. If you witness when the subject of harassment, they write in your evidence.

Debt collectors may threaten your country to sell only because they were sure that you have something. Housing counseling services for advice on how to deal with these people. You should avoid listening to these people, because they can easily go wrong. For example, they can confuse you, you pay excessive bills, or even encourage you to sell a portion of your assets.

Read More

The Theory of Money and the Theory of Value

The most important point to emerge from Marx's theory of money is the idea that money is a form of value. The difficulty with this idea is that we are more familiar with money itself than with value in other forms. But value does appear in forms other than money. For example, the balance sheet of a capitalist firm estimates the value of goods in process and of fixed capital which has not yet been depreciated, as well as the value of inventories of finished commodities awaiting sale. Each of these aggregations of commodities has a value, usually expressed as the equivalent of a certain amount of money, but it is clear that neither goods in process nor fixed capital is money. Marx views the value of commodities in this sense as analytically prior to money; money can be explained according to Marx only on the basis of an understanding of the value of commodities.

Marx follows Smith in regarding value as the property of exchangeability of commodities. In a society where exchange is common, products come to have a dual character as use values and as values. They have two powers: first, to satisfy particular human needs and wants; and second, to exchange for other products. This second power can be thought of quantitatively, as an amount of exchangeability or command over other commodities. The classical economists viewed value as a real, though socially determined, entity, with its own laws of conservation and motion. Value in this sense bears the same relation to commodities as mass bears to physical objects. It is not surprising that in societies where exchange is widespread value takes on an independent form as money, as an expression of general exchangeability.

Value is a central social reality for people; they constantly think and talk about it directly or indirectly; they want some way to transfer it directly among themselves, separate from particular commodities.

This is what we mean by "money." It is the social expression of value separated from the concrete particularity of any use value. With this emergence of money as the social expression of value, money stands, in opposition to commodities, as the abstract always stands in opposition to the particular. We will see value in two forms: as particular commodities, and as money. It is crucial to recognize that this development is latent in the commodity form itself. Insofar as commodity relations are well developed, so that exchange of products is common and people are forced to consider the value of products separately from their use values, the money form of value will also be present. There is no reason to think of the commodity form emerging historically before the money form.

Read More

Check Your Credit Report Regularly

Identity Theft & Your Credit Report
----------------------------
Identity theft is a type of fraud in which financial
information is illegally obtained for the purpose of making
unauthorized purchases and transactions with credit cards or
funds from financial accounts. A thief can use your personal
information such as your name, drivers license, Social
Security number, health insurance, or bank account number,
to make purchases as if they were you. If this happens, it
could be the beginning of a financial disaster that could
linger for years and cause you to lose job opportunities, be
turned down for credit or loans, and in some cases, ruin
your reputation.

There are a lot of thing you can do to minimize the risk of
becoming a victim of identity theft. This article focuses on
obtaining and reviewing your credit report, quite similar to
what we do when we perform network security assessments,
believe it or not.

What Is A Credit Report
--------------------------
There are three major credit bureaus that collect, maintain,
an distribute credit information about you. These companies
are Experian, TransUnion, and Equifax. Some of the
information you will find in your credit report is; personal
information such as your legal name, alias names, addresses,
current and previous employers, and date of birth; your
credit summary such as current and past credit status, total
number of open and closed accounts, the balances of
accounts, if they are current or delinquent; public record
information such as federal bankruptcy records, local
government court records, liens, judgments, and child
support records (information that can stay in your record
for up to 10 years); credit inquires - when you apply for a
credit card or loan, the institution will make an inquiry to
one or more of the credit bureaus; detailed account history
- very up to date information about your loan payments,
credit card debt and payment history, and this information
stays on your report indefinitely; credit score - a number
ranging from 330 to 830, the higher the number the better
your credit is and increases the chance of you obtaining a
loan or credit account.

Why Should You Check Your Credit Report Frequently
--------------------------------------------------
If someone gets your Social Security number, it only takes a
few additional pieces of information, which is quite easily
obtained, to assume your identity. The Internet makes it
even easier than ever because most of this information the
criminal needs to get his hands on is out there. It is not
my purpose to scare anyone, but I must tell you that if you
think you are not at risk, you need to think again.

The most common forms of identity theft include; credit card
fraud, bank fraud, communications services, and fraudulent
loans. The bad thing is that this type of fraud can
negatively impact your life, the good thing is there are
ways of monitoring what other people do with your identity.

Do you know, that nearly all of the security assessments we
perform, we find personal and financial information on work
computers. What ever you do, do not store this kind
information at your workplace. This is a sure fire way of
becoming a victim of identity theft. If I had more room in
this article I could tell you stories about identity theft
and fraud that would make your hair stand on end. And,
everyone of us are potential victims.

Things You Can Do To Protect Yourself From Identity Theft
----------------------------
I've written other articles about identity theft, and I am
sure I will write more. The bottom line is this is one of
the worst things that can happen to you financially, and the
risk of it happening is quite high. Some of the things you
can do to minimize this risk besides regularly checking and
monitoring your credit report is:

Shred all of those pre-approved credit cards you get in the
mail. This includes any document or item you receive that
contains your Social Security number, date of birth, or any
other personal identity information.

Never print your Social Security number, phone number, date
of birth, or credit card information on your checks. If a
merchant ask you for this information so they can write it
on your check, do not give it to them. Even if they tell you
you cannot make the purchase without it, go somewhere else.

Secure your mail and email. Did you know that a common
tactic for thieves is to divert your mail by filing a change
of address at the post office. Of course, there is the
typical method of just reaching into your mailbox and taking
checks, utility bills, and so on. Because people use email
as a substitute for snail-mail (normal paper mail), you
should be careful what you email to people as well.

Monitor your credit by obtaining a credit report from one of
the three, if not all three, credit bureaus. They may be
able to provide you with a consolidated report from all
three companies. And, most of them have inexpensive monthly
services that monitor your report for you and send you
alerts when things change or inquiries are made on your
account.

Conclusion
----------
As a consumer, you need to take this issue of fraud and
identity theft very seriously. Not only should this be
important to you, but if you have a family, you should see
it as an obligation to protect their future. As with any
type of security issue, there is nothing 100% secure.
However, you can take steps to minimize your risk and
exposure. Remember, it is typically the easy target
criminals focus their attention and efforts on.

Obtain your credit report and review it thoroughly, you
might be surprised by what you find. If you happen to see
something that is not right, take immediate steps to clear
it up.

Read More

Credit Card Tips

There are credit card tips, and then there are credit card secrets. These latter are little known tricks that credit card companies play on you, as well as tricks you can use to get rid of fees and pay off your debt sooner. Here are some of the best credit card tips, tricks and secrets.

1. You can get rid of annual fees. If you have good credit, just call and ask for fee to be removed. This worked on three out of four cards I called on, and I just dumped the other. Of course the threat to do the same with the others is what got the fees dropped.

2. Read the fine print, and pay on time. Be aware that under "universal default" rules, if you are late on one card, your interest rate can be increased on other cards as well. They love to get you with this one.

3. Watch for changing due dates. This is a trick used by some credit card companies to get you to pay late, so they can collect the late fees. They will also be able to raise your rate, and the rate on other cards you may have. Don't assume that your payment due date will always be the same.

4. Use promotional checks with care. Transferring balances to 0 interest promotions can be a good idea, but watch out for those that charge "balance transfer fees." Transferring a balance that you were going to pay off soon anyhow will just cost you more if there is a 3% transfer fee.

5. Try credit unions for cards. Their cards usually have lower rates. My credit union Visa rate hasn't been over 10% in years, and I have zero liability for unauthorized charges.

6. Ask to have the late fee waived. If you've never been late before, some credit card companies will waive a late fee - but only if you ask. Why not try it? All it takes is a phone call.

7. Pay in full every month. Credit cards are for convenience, not for hiding the true cost of things. Don't pay interest - just pay the balance every month.

8. Don't buy the credit card insurance. This typically stops your payments when you are injured or unemployed. It is one of the most over-priced insurances out there, and doesn't eliminate the debt, but just delays it.

9. Avoid credit card security insurance. It pays for unauthorized charges when your card is stolen, but you are only liable for the first $50 if you report the theft in any case, and many cards already have 0 liability.

10. Pay high-interest cards first to reduce credit card debt. If you have $200 monthly to apply to your credit card debt, pay only the minimums only on all cards but the card with the highest interest rate. Put all the rest of the money towards that one. Once that one is paid off, work on the next highest. This is the fastest way to get rid of your credit card debt, and the most important of these credit card tips.

Author: Steve Gillman

Read More

Managing the Income Portfolio

The reason people assume the risks of investing in the first place is the prospect of achieving a higher rate of return than is attainable in a risk free environment…i.e., an FDIC insured bank account. Risk comes in various forms, but the average investor’s primary concerns are “credit” and “market” risk… particularly when it comes to investing for income. Credit risk involves the ability of corporations, government entities, and even individuals, to make good on their financial commitments; market risk refers to the certainty that there will be changes in the Market Value of the selected securities. We can minimize the former by selecting only high quality (investment grade) securities and the latter by diversifying properly, understanding that Market Value changes are normal, and by having a plan of action for dealing with such fluctuations. (What does the bank do to get the amount of interest it guarantees to depositors? What does it do in response to higher or lower market interest rate expectations?)


You don’t have to be a professional Investment Manager to professionally manage your investment portfolio, but you do need to have a long term plan and know something about Asset Allocation… a portfolio organization tool that is often misunderstood and almost always improperly used within the financial community. It’s important to recognize, as well, that you do not need a fancy computer program or a glossy presentation with economic scenarios, inflation estimators, and stock market projections to get yourself lined up properly with your target. You need common sense, reasonable expectations, patience, discipline, soft hands, and an oversized driver. The K. I. S. S. Principle needs to be at the foundation of your Investment Plan; an emphasis on Working Capital will help you Organize, and Control your investment portfolio.


Planning for Retirement should focus on the additional income needed from the investment portfolio, and the Asset Allocation formula [relax, 8th grade math is plenty] needed for goal achievement will depend on just three variables: (1) the amount of liquid investment assets you are starting with, (2) the amount of time until retirement, and (3) the range of interest rates currently available from Investment Grade Securities. If you don’t allow the “engineer” gene to take control, this can be a fairly simple process. Even if you are young, you need to stop smoking heavily and to develop a growing stream of income… if you keep the income growing, the Market Value growth (that you are expected to worship) will take care of itself. Remember, higher Market Value may increase hat size, but it doesn’t pay the bills.


First deduct any guaranteed pension income from your retirement income goal to estimate the amount needed just from the investment portfolio. Don’t worry about inflation at this stage. Next, determine the total Market Value of your investment portfolios, including company plans, IRAs, H-Bonds… everything, except the house, boat, jewelry, etc. Liquid personal and retirement plan assets only. This total is then multiplied by a range of reasonable interest rates (6%, to 8% right now) and, hopefully, one of the resulting numbers will be close to the target amount you came up with a moment ago. If you are within a few years of retirement age, they better be! For certain, this process will give you a clear idea of where you stand, and that, in and of itself, is worth the effort.


Organizing the Portfolio involves deciding upon an appropriate Asset Allocation… and that requires some discussion. Asset Allocation is the most important and most frequently misunderstood concept in the investment lexicon. The most basic of the confusions is the idea that diversification and Asset Allocation are one and the same. Asset Allocation divides the investment portfolio into the two basic classes of investment securities: Stocks/Equities and Bonds/Income Securities. Most Investment Grade securities fit comfortably into one of these two classes. Diversification is a risk reduction technique that strictly controls the size of individual holdings as a percent of total assets. A second misconception describes Asset Allocation as a sophisticated technique used to soften the bottom line impact of movements in stock and bond prices, and/or a process that automatically (and foolishly) moves investment dollars from a weakening asset classification to a stronger one… a subtle "market timing" device.

Finally, the Asset Allocation Formula is often misused in an effort to superimpose a valid investment planning tool on speculative strategies that have no real merits of their own, for example: annual portfolio repositioning, market timing adjustments, and Mutual Fund shifting. The Asset Allocation formula itself is sacred, and if constructed properly, should never be altered due to conditions in either Equity or Fixed Income markets. Changes in the personal situation, goals, and objectives of the investor are the only issues that can be allowed into the Asset Allocation decision-making process.


Here are a few basic Asset Allocation Guidelines: (1) All Asset Allocation decisions are based on the Cost Basis of the securities involved. The current Market Value may be more or less and it just doesn’t matter. (2) Any investment portfolio with a Cost Basis of $100,000 or more should have a minimum of 30% invested in Income Securities, either taxable or tax free, depending on the nature of the portfolio. Tax deferred entities (all varieties of retirement programs) should house the bulk of the Equity Investments. This rule applies from age 0 to Retirement Age – 5 years. Under age 30, it is a mistake to have too much of your portfolio in Income Securities. (3) There are only two Asset Allocation Categories, and neither is ever described with a decimal point. All cash in the portfolio is destined for one category or the other. (4) From Retirement Age – 5 on, the Income Allocation needs to be adjusted upward until the “reasonable interest rate test” says that you are on target or at least in range. (5) At retirement, between 60% and 100% of your portfolio may have to be in Income Generating Securities.


Controlling, or Implementing, the Investment Plan will be accomplished best by those who are least emotional, most decisive, naturally calm, patient, generally conservative (not politically), and self actualized. Investing is a long-term, personal, goal orientated, non- competitive, hands on, decision-making process that does not require advanced degrees or a rocket scientist IQ. In fact, being too smart can be a problem if you have a tendency to over analyze things. It is helpful to establish guidelines for selecting securities, and for disposing of them. For example, limit Equity involvement to Investment Grade, NYSE, dividend paying, profitable, and widely held companies. Don’t buy any stock unless it is down at least 20% from its 52 week high, and limit individual equity holdings to less than 5% of the total portfolio. Take a reasonable profit (using 10% as a target) as frequently as possible. With a 40% Income Allocation, 40% of profits and dividends would be allocated to Income Securities.


For Fixed Income, focus on Investment Grade securities, with above average but not “highest in class” yields. With Variable Income securities, avoid purchase near 52-week highs, and keep individual holdings well below 5%. Keep individual Preferred Stocks and Bonds well below 5% as well. Closed End Fund positions may be slightly higher than 5%, depending on type. Take a reasonable profit (more than one years’ income for starters) as soon as possible. With a 60% Equity Allocation, 60% of profits and interest would be allocated to stocks.

Monitoring Investment Performance the Wall Street way is inappropriate and problematic for goal-orientated investors. It purposely focuses on short-term dislocations and uncontrollable cyclical changes, producing constant disappointment and encouraging inappropriate transactional responses to natural and harmless events. Coupled with a Media that thrives on sensationalizing anything outrageously positive or negative (Google and Enron, Peter Lynch and Martha Stewart, for example), it becomes difficult to stay the course with any plan, as environmental conditions change. First greed, then fear, new products replacing old, and always the promise of something better when, in fact, the boring and old fashioned basic investment principles still get the job done. Remember, your unhappiness is Wall Street’s most coveted asset. Don’t humor them, and protect yourself. Base your performance evaluation efforts on goal achievement… yours, not theirs. Here’s how, based on the three basic objectives we’ve been talking about: Growth of Base Income, Profit Production from Trading, and Overall Growth in Working Capital.


Base Income includes the dividends and interest produced by your portfolio, without the realized capital gains that should actually be the larger number much of the time. No matter how you slice it, your long-range comfort demands regularly increasing income, and by using your total portfolio cost basis as the benchmark, it’s easy to determine where to invest your accumulating cash. Since a portion of every dollar added to the portfolio is reallocated to income production, you are assured of increasing the total annually. If Market Value is used for this analysis, you could be pouring too much money into a falling stock market to the detriment of your long-range income objectives.


Profit Production is the happy face of the market value volatility that is a natural attribute of all securities. To realize a profit, you must be able to sell the securities that most investment strategists (and accountants) want you to marry up with! Successful investors learn to sell the ones they love, and the more frequently (yes, short term), the better. This is called trading, and it is not a four-letter word. When you can get yourself to the point where you think of the securities you own as high quality inventory on the shelves of your personal portfolio boutique, you have arrived. You won’t see WalMart holding out for higher prices than their standard markup, and neither should you. Reduce the markup on slower movers, and sell damaged goods you’ve held too long at a loss if you have to, and, in the thick of it all, try to anticipate what your standard, Wall Street Account Statement is going to show you… a portfolio of equity securities that have not yet achieved their profit goals and are probably in negative Market Value territory because you’ve sold the winners and replaced them with new inventory… compounding the earning power! Similarly, you’ll see a diversified group of income earners, chastised for following their natural tendencies (this year), at lower prices, which will help you increase your portfolio yield and overall cash flow. If you see big plus signs, you are not managing the portfolio properly.


Working Capital Growth (total portfolio cost basis) just happens, and at a rate that will be somewhere between the average return on the Income Securities in the portfolio and the total realized gain on the Equity portion of the portfolio. It will actually be higher with larger Equity allocations because frequent trading produces a higher rate of return than the more secure positions in the Income allocation. But, and this is too big a but to ignore as you approach retirement, trading profits are not guaranteed and the risk of loss (although minimized with a sensible selection process) is greater than it is with Income Securities. This is why the Asset Allocation moves from a greater to a lesser Equity percentage as you approach retirement.


So is there really such a thing as an Income Portfolio that needs to be managed? Or are we really just dealing with an investment portfolio that needs its Asset Allocation tweaked occasionally as we approach the time in life when it has to provide the yacht… and the gas money to run it? By using Cost Basis (Working Capital) as the number that needs growing, by accepting trading as an acceptable, even conservative, approach to portfolio management, and by focusing on growing income instead of ego, this whole retirement investing thing becomes significantly less scary. So now you can focus on changing the tax code, reducing health care costs, saving Social Security, and spoiling the grandchildren.

Read More

Guaranteed Loan Approvals For Bad Credit

For individuals who suffer from bad credit, guaranteed loan approval loans provide a short-term aid to meet their financial needs. The only factor that can disqualify one from getting a guaranteed loan approval is an on-going or recent bankruptcy. Nevertheless, if the problem is with regards to your low credit score, you can apply for a guaranteed loan as a way to redeem your damaged credit.

How to Apply for a Guaranteed Approval Loan for Bad Credit

What are the procedures involved in applying for a guaranteed loan? There are various ways to apply. Application can be done over the phone, from the lending company's website or by personally visiting the lender's office. Most applicants prefer to apply online because it is fastest and most convenient. All one has to do is fill-up an online form, submit and wait for a response for as little as 24 hours.

Can anyone qualify for a Bad Credit Loan?

Is it really easy to get an approval? Technically, the procedures involved in applying for a guaranteed loan are easier than a regular loan. As with other loans, a borrower must be of legal age or at least 18 years old. He or she must also have earnings of at least $1200 or above for the past three months. An active checking account is also required although a high credit score isn't necessary. Once approved, the borrower can receive his loan in cash the following day via electronic transfer.

Consequences of Acquiring a Bad Credit Guaranteed Loan

Yes, application is fairly easy but this doesn't mean borrowers should take their payment obligations lightly. When seeking for a guaranteed loan approval, an applicant will be required to sign a contract. The rules and conditions of repayment vary between lenders so a borrower must see to it that he clearly understands the terms of his lender. Generally, lenders will automatically debit the repayment amount from the borrower's checking account if he/she fails to submit payment on time. Other repayment options may apply depending on the lender.

As with any type of loans, consumers are warned not to make decisions in a hurry when looking for a guaranteed loan approval lender. Since getting approved can be done in few, easy steps, the borrower must also take his time researching for the best lender to apply to. There are lenders who provide guaranteed loans that take advantage of their client's financial needs. Some lenders may impose excessively high interest rates which can only cause a person more serious debt problems.

Finally, always remember that guaranteed loans are not meant as a long term financial solution. These loans are easy to avail but they do have higher interest rates than regular loans. It is best to seek out other possible alternatives before getting this type of loan. If however, you feel that this is the best option for your short term needs, see to it that you'll be able to make your repayments on time to avoid incurring high interest rates on your debts.

by Melanie Mathis

Read More

Loan for people with bad credit rating- Get hold of rapid fiscal support hasslelessly

Are you getting despair as things are not moving as you want? People who are undergoing adverse credits find difficulty in assembling cash for dispersing their needs. However, loan for people with bad credit rating offers you steady financial arrangement.

As its name suggest, loan for people with bad credit rating are free from the credit hurdles. The borrower can get fast cash even with having bad credit in their account. You can adapt easy funds with swift loan proposal via online method. To get applied with this loan, little requisites need to be filled in the application form and after the little verification you will get approved in less than 24 hours. The money you borrowed can be used for varied number of purposes whether personal or professional.

Liberations from credit checks are the main agenda of these loans which usually engage with wastage of time and efforts. These are the loan without further ruining your credit rating and standing. People who don't possess valuable asset don't have to get worried as these loans are available to the people who don't have anything to pledge. No boundations and upheaval of faxing documentations and extensive preparation of paper work.

Eligibility criteria:

To strengthen your worst circumstances, you can get applied with cheap bad credit loans with respect to getting qualified with the following eligibility criteria:

* Attain full employment. * Hold a compelling and active checking account. * Stable UK resident. * Have permanent residential address in UK itself. * Earn at least the minimum of 1000 pounds monthly. * Possess sound repayment ability.

If you are eligible with all the above stated requirements, you will easily get the approval from the lender through an email and the borrowed amount will get put forward into your check account with no mere holdup and ache.

by Shain Johnson

Read More

How Consolidation For School Loans Can Benefit You: Student Loan Consolidation

Some students end up not being able to pay back their loan after they graduate from college. They can be so overwhelmed with debt that paying back their school loan is the farthest thing from their mind. If this is how you're feeling, then the consolidation of school loans may be something to think about.

The consolidation of school loans means that you would put all of your loans together and make it as one loan. You would only have to make payments to one lender. The advantage of having one loan is that you can get in at a low interest rate. Consolidating school loans can also save you money as opposed to paying for more than one school loan. When you consolidate your loans, you are able to budget your expenses better.

There are a number of federal student loans that can be included for the consolidation of school loans. These loans have an advantage because you can get a lower monthly payment. Some of these federal loans include:

* Federal Direct Loans
* National Direct Student Loans
* Federal Stafford Loans
* PLUS Loans
* Loans for Disadvantaged Students


For the loan consolidation process, you have to qualify for the loan. You have to be out of school and currently not in any program. Every piece of information about you should be included in order to properly service the loan consolidation request for your school loans

Check out different lenders to see which ones can meet your needs. Look at the terms and interest rates. On the upside, consolidation of school loans would make your payments lower by over 50 percent. On the downside, you may end up paying more in interest. Whoever you get as your lender, make sure that you read the fine print before you sign the application. Don't allow them to rush you through the process. If you have any questions, ask the lender prior to signing on the dotted line.

When you have been approved for the consolidation school loan, check everything for errors. Being locked into the rate that you wanted is very important. Get professional consultation if you find errors on your paperwork. You want to make sure that you can afford the monthly payments without having to go broke trying to pay them back.

The consolidation school loan can be expanded up to a period of about thirty years. If you really want to stick with a lower interest rate (who doesn't?) you can work on paying off the debt faster. This can help you to avoid those extra monthly payments.

by Tony Abreu

Read More

Bad Credit Score Effective Ways To Repair It !!!

We live in a society where credit scores are important.The credit companies keep tract of our payments and submit all the information to credit bureaus, where they compile all that information and that's how we get our individual credit scores. If you pay you bills on time then you will have a good credit score, but if you don't pay on time then you find yourself paying a higher interest rate on a auto loan, mortgage or even miss our on that perfect job that you had your eye on. There are few tips that will help you to repair your credit score: 1. Make sure that your bills are paid on time One of the best ways to improve your credit score is simply to pay your bills on time. This is so simple but it works very well, because nothing shows lenders that you take debts seriously as much as a history of paying promptly. Every lender wants to be paid in full and on time. If you pay all your bills on time then the odds are good that you are a good candidate for a home loan, auto insurance, even a job, some companies check your credit score to see if you are a responsible individual and a good rick for the company. 2. Make every effort to pay down your debts If you have a lot of debt, your credit score will suffer. Paying down your debts to a minimum will help to repair your credit score. For example, if your balances are close to the credit limits, you will be considered a greater risk for credit. What the companies want is for you to have no more than half of your allotted credit limit used up. If you're serious about improving your credit score, then start with the largest debt you have and start paying it down. 3. Avoid overextending yourself, do not take on more credit than you can pay Try to avoid multiple credit cards with high credit limits. You don't want to take on more credit than you can comfortably pay off. Even if you are making payments regularly, lender know that paying off high debt will be a lot harder in case there is a financial set back. In order to repair your credit score you must avoid taking out excessive credit. You should stick to one or two credit cards in order to have the best credit rating. Borrow only when you need it and make sure to make payments on time. You should also know that having to many credit cards, especially if they are pretty new accounts, will not help you to repair your credit score, it will cause your credit score to go down because it will look as though you are being financially irresponsible.

by Jeanette Fitzgerald

Read More

Creating a Personal Budget

While most of us will utilize plans for vacations, plans for the holidays, or plan out our weekly to-do lists, often planning how we spend our money is something we never get around to doing. Simply put, a budget is a plan, not necessarily an elaborate plan, for where to put our money. How much to spend, how much to save, what are the items needed, what are the items wanted and differentiating between the two.

Constantly recording your spending and purchases is a good way to begin regaining control over your personal finances. In the beginning, you only want to record your purchases, don't change your spending habits until you know what they are. As you look over your spending take the time to determine what you want and what you really need. When you see where the money is slowly bleeding out, you are more likely to want to patch up the hole it is coming from. You should gradually adjust your budget as you get better at spending less. Because you want this to be a permanent change you need to use baby steps. Don't tighten your belt too quickly and make sure you still spend money on a couple of fun things. This will keep you from rebelling against your new budget. Eventually staying on budget and constantly evaluating your finances will become second nature to you.

To begin you will need to figure out what things are not necessary to buy and develop a baseline spending pattern to follow for the second and third month.

1. After tracking monthly unnecessary expenditures, average it down to weekly expenditures. Withdraw cash, but make sure it is less than the amount you spent last month. This cash is for any nonessential purchases for the month. You may run out of cash before the week ends, but there is only a few days left until the new week begins.

2. You probably eat out more often than you realize. Reducing the number of days per week you dine out is a good starting point. This number is up to you, but you should begin with a figure you will be most comfortable with and follow it for a month.

3. You can save on clothing by purchasing one piece at a time instead of a complete outfit. Make it a habit to check out clearance items first, then discounted items before visiting the rest of the store.

4. Spend an afternoon comparing the prices for telephone, cable, satellite, and garbage pickup services, in addition to the rates and terms for credit cards to find fees that are more competitive as well as switching bonuses.

5. Avoid getting cash from ATM machines other than those of your own bank to save yourself additional fees.

6. Always make a list prior to going shopping, and make sure you adhere to it. If you do remember something that wasn't on the list, remind yourself that you can always return to the store. Most likely you won't return for that item, which will save you even more money in the long run. Do whatever it takes to avoid impulse purchases in order to succeed in your financial goals.

Overall, remember reduce stress by starting with a snap shot of where you are spending money now, make a budget in increments, allow yourself a few luxuries as you go, don't be too hard on yourself. You want the budget to work over the long term. Create successes for yourself in the beginning, reevaluate over a period of several months, and a new lifestyle will emerge where you will be more in control of your spending and have less wasteful spending that will generate more cash flow for you as well.

by Phil Rogers

Read More

Exploring Better Alternatives for Personal Loans

Acquiring a personal loan is intended for financing and managing a person's financial needs. For taking finance, a person may apply for a loan or a credit card to purchase shares or any asset like home, vehicle etc.

But, before deciding about the financial goals, a person must assess his or her financial situation. While using credit card or personal loan in financing, proper plan for management of debt burden is imperative.

Correct information should be given in the credit report because the chances are high that incorrect information and mistakes on credit report have an adverse effect on the personal loan. The most common errors that occur in the credit report are outdated information, which can stay on the report for seven years, and inaccurate marking like erroneous late payment, repossession and bankruptcy.

Prior to applying for a loan with a financial company, it must be ensured that best rates and terms are selected especially for first time borrowers. First time borrowers must initially determine how much to borrow and for how long to take for repayment. Lenders usually impose higher interest rates for loans on small amounts and so it makes better sense to apply for higher amounts of loans and use the surplus cash to invest with higher rate of interest. If that is frightening, it is advisable to write a budget of all the expenses including monthly bills and daily living costs. Then the expenses should be subtracted from the net income and 75 percent of the left over amount can be set apart for the monthly loan payment keeping the rest 25 percent as a buffer for other expenses.

The amount to be borrowed can be determined on the basis of the purpose for which the personal loan is taken. The length of the time taken for repayment of the money borrowed is the term of the loan. The longer the loan term, the lesser the monthly payments and more the interest rates.

In fact, there are viable alternatives to personal financing that can save money. For example homeowners can explore mortgage products and refinancing also will help to some extent. For a relatively lower amount, applying for a credit card can come in handy for people with poor credit if the intention is to pay off the debt in a short span of time. Borrowing against 401k is a wise decision. It is also equally important to get a copy of the 3- in 1 credit report which provides a complete analysis of profiles as reported by three major credit reporting agencies. If the application for personal loan has been rejected, it is advisable to wait for one or two months before applying again because if applied in more than one source, multiple inquires will adversely affect the credit score.

Apart from all these hassles, to avoid dealing with emergency purposes-most of the personal loans are for this purpose -it is good if a small "emergency fund" is developed by entailing a few dollars away every month as savings.

by Lesley Lyon

Read More

Who can Avail of No Credit Personal Loans

Monetary problems can arise any time without prior notice or warning. To get through personal loan process easily with bad credit can be daunting. In such a situation no credit personal loans come for help. Even though finding loans with no credit is slightly difficult, this is a new way of overcoming credit problems.

No credit personal loans are perfect when there is an urgent need for cash right away and approval can be obtained in less than a day. To get a no credit personal loan, the borrower should satisfy certain basic requirements like the person should be a US citizen residing in the US with an income of US$800 or more per month and should have an active checking account.

No credit personal loans can be obtained even if there is a bad credit .A pay day advance is an excellent way to get a no credit check loan for bad credit or any credit since it provides a high risk loan to anyone with an active checking account. This has a higher interest rate than a simple long-term loan.

Unlike bad credit personal loans, no credit personal loans do not have high interest rates and the borrowers must weigh down their options before deciding. No credit personal loans can be availed from banks or credit institutions, which are the most searched keyword on the net. Without hurrying to sign for a loan it is better to ask for free notes, compare the quotes and then decide the credit loans that offer the maximum benefits without credit checks. The policies and repayment terms should also be taken into consideration.

No credit personal loans are not dependant on the credit score and generally do not require a collateral for the loan and therefore have a higher interest rate than secured loans. It is advisable to take good notice of APR, which is the annual percentage rate-the total cost for a loan per year given as the percentage of the loan amount. It is the sum of the interest and any other fees compared to the amount of the loan. It is required to concentrate on APR while comparing no credit personal loans because loans with lower APR will cost lesser. If the loan amount is more, then collateral is needed. Usually no credit personal loans can be utilized for home improvement, debt consolidation or car purchase etc. where the loan term is three to five years. No credit personal loans are not advisable for a longer term because they cost more in the long run. If there is any difficulty in repaying no credit personal loan, it should be promptly reported to the lender who might help, the reasons being genuine.

Even no credit personal loans are liable to be deceptive since there may be many hidden costs. In fact, no credit personal loans usually demand a cosigner and an exorbitant late fee. Clarifying all the doubts with the lender will help in clearing any confusion. Otherwise no credit personal loan will become a personal liability.

by Lesley Lyon

Read More

Avoiding Traps of Sub Prime Personal Loan Lenders

A personal loan with an interest rate that is above the prime rate is known as sub prime personal loan, the interest rate being 0.1 to 0.6 percentages higher than the standard interest rate. This is so because since the sub prime borrowers are considered to be risky the lenders try to make up for the risk by charging higher interest rate. To decide whether this is a good financial move, the borrower should look at his current credit and financial situations.

The most common of all sub prime personal loans is the home loan. Home loans are designed for people with credit problems to purchase a home. Lending institutions, which are reputed countrywide, offer such loans. There are precautions to be taken because several scam artists and exorbitant fees are there on the Internet.

Since there is no standard rate charged by sub prime lenders, they treat each case individually and often charge high interest rates. But it is always better to do a thorough research because some sub prime lenders may even offer loan packages that are manageable. Sub prime lenders often look at the credit report of the borrower, employment history, income and the amount of debt if any and so on.

The cash that is available makes all the difference. If the credit rating is low, the borrower should have a much more cash available to compensate, which could lead to higher down payment sometimes as high as 20 to 25 percent. If not, there is no other option but to go in for bad credit personal loan.

As sub prime lenders may offer a mortgage with alarming terms hidden in the blue print, so thorough investigation is essential. Some sub prime lenders offer credit cards to financially distressed people. Counseling with credit counselors or with people who have had experience in the field can be of some guidance.

Most people applying for sub prime personal loans have a credit score less than 620.The borrower is eligible for a prime rate loan if the credit score is more than 620. At times, banks may refer to individuals to a finance company or affiliate for sub prime lending. It is sane to check whether the company is federally insured or search the Internet for customer reviews regarding various lenders and ascertain that the payments are manageable so that the debt is not compounded.

Sub prime loans should be taken only if it is an utter necessity because borrowers have to pay a sizeable amount of interest over the life of the loan. Sometimes sub prime lenders who can be termed as predatory may use certain techniques to make the borrowers a prey to them. They may sell properties more than their worth by false appraisals, encourage borrowers to lie about their income, and expenses, pressurize borrowers to accept higher-risk loans, target vulnerable borrowers to cash out refinances or use high pressure sales tactics to sell home improvements etc. Borrowers should do complete research to avoid being victimized by such predatory lenders. There are even laws to protect the borrowers who have fallen a prey to such lenders which can be availed of.

by Lesley Lyon

Read More

Let Money Work For You Do Not Let It Work Against You

Young men starting in life should avoid running into debt. There is scarcely anything that drags a person down like debt. It is a slavish position to get in, yet we find many a young man, hardly out of his "teens," running in debt.

He meets a chum and says, "Look at this: I have got trusted for a new suit of clothes." He seems to look upon the clothes as so much given to him; well, it frequently is so, but, if he succeeds in paying and then gets trusted again, he is adopting a habit which will keep him in poverty through life. Debt robs a man of his self-respect, and makes him almost despise himself.

Grunting and groaning and working for what he has eaten up or worn out, and now when he is called upon to pay up, he has nothing to show for his money; this is properly termed "working for a dead horse." I do not speak of merchants buying and selling on credit, or of those who buy on credit in order to turn the purchase to a profit. The old Quaker said to his farmer son, "John, never get trusted; but if thee gets trusted for anything, let it be for 'manure,' because that will help thee pay it back again."

Mr. Beecher advised young men to get in debt if they could to a small amount in the purchase of land, in the country districts. "If a young man," he says, "will only get in debt for some land and then get married, these two things will keep him straight, or nothing will." This may be safe to a limited extent, but getting in debt for what you eat and drink and wear is to be avoided. Some families have a foolish habit of getting credit at "the stores," and thus frequently purchase many things which might have been dispensed with.

It is all very well to say; "I have got trusted for sixty days, and if I don't have the money the creditor will think nothing about it." There is no class of people in the world, who have such good memories as creditors. When the sixty days run out, you will have to pay. If you do not pay, you will break your promise, and probably resort to a falsehood. You may make some excuse or get in debt elsewhere to pay it, but that only involves you the deeper.

A good-looking, lazy young fellow, was the apprentice boy, Horatio. His employer said, "Horatio, did you ever see a snail?" "I - think - I -have," he drawled out. "You must have met him then, for I am sure you never overtook one," said the "boss." Your creditor will meet you or overtake you and say, "Now, my young friend, you agreed to pay me; you have not done it, you must give me your note." You give the note on interest and it commences working against you; "it is a dead horse."

The creditor goes to bed at night and wakes up in the morning better off than when he retired to bed, because his interest has increased during the night, but you grow poorer while you are sleeping, for the interest is accumulating against you.

Money is in some respects like fire; it is a very excellent servant but a terrible master. When you have it mastering you; when interest is constantly piling up against you, it will keep you down in the worst kind of slavery. But let money work for you, and you have the most devoted servant in the world. It is no "eye-servant." There is nothing animate or inanimate that will work so faithfully as money when placed at interest, well secured. It works night and day, and in wet or dry weather.

I was born in the blue-law State of Connecticut, where the old Puritans had laws so rigid that it was said, "they fined a man for kissing his wife on Sunday." Yet these rich old Puritans would have thousands of dollars at interest, and on Saturday night would be worth a certain amount; on Sunday they would go to church and perform all the duties of a Christian.

On waking up on Monday morning, they would find themselves considerably richer than the Saturday night previous, simply because their money placed at interest had worked faithfully for them all day Sunday, according to law!

Do not let it work against you; if you do there is no chance for success in life so far as money is concerned. John Randolph, the eccentric Virginian, once exclaimed in Congress, "Mr. Speaker, I have discovered the philosopher's stone: pay as you go." This is, indeed, nearer to the philosopher's stone than any alchemist has ever yet arrived.

by Godfrey Philander

Read More

Tax Considerations When Re-Financing

For many homeowners the overall goals of re-financing are often paying less in interest overall and reducing monthly payments. When a homeowner is able to obtain a lower interest rate, there is usually the opportunity to re-finance the mortgage to capitalize on the lower interest rate. However, a lower interest rate does not automatically translate to a savings. The homeowner must carefully consider the amount of money they will be savings over the course of the loan in relation to the amount of money they will be spending to re-finance the mortgage. When the closing costs associated with re-financing are larger than the savings, re-financing may not be warranted. Re-financing can also have financial ramifications associated with tax options.

Paying Less Interest Equals Less of a Deduction

In most locations, homeowners are permitted to deduct the amount of taxes they pay on their mortgage when filing their tax forms. This is usually quite a substantial deduction for homeowners who owned the home for the entire tax year. Those who re-finance their mortgage will typically be paying less money each year in taxes on the mortgage. While this is great in the long run, it can adversely affect the homeowner's tax return.

Consider a situation where a homeowner is located just below a major tax bracket which would be quite costly for the homeowner. As all ready discussed, re-financing may result in the homeowner paying less money in taxes each year. This means the taxpayer will be able to make a smaller deduction this year now fall above the tax bracket they previously fell below. When this happens the homeowner may find themselves paying significantly more in taxes.

Consult a Tax Preparation Specialist

Determining the exact ramifications of paying less interest on a home mortgage on a tax return can be a rather tricky process. There are a number of difficult equations involved which can make the apt to make mistakes while trying to determine the consequences of paying less in taxes on the mortgage. For this reason, the homeowner should consult a tax preparation specialist when determining whether or not re-financing is worthwhile because the tax specialist can provide information regarding the impact of paying less in interest.

In selecting a tax preparation specialist, the homeowner should seek out opinions from friends and family members if the homeowner does not employ a specialist to prepare their own taxes. This can be helpful because trusted friends and family members are only likely to recommend professionals they feel were knowledgeable, trustworthy and caring. A tax preparation specialists should have all of these qualities but should also be well versed in the area of tax preparation. This will enable the tax preparation specialist to make all of the right decisions when considering the needs of the homeowner.

Online Calculators

For homeowners who do not know a tax preparation specialist or for homeowners who are unable to afford the consulting services of these individuals, there are online calculators which homeowners might find very useful. These calculators are readily available throughout the Internet and can be used to determine the tax ramifications to re-financing. These calculators ask the user to input specific criteria then returns results regarding the amount the homeowner will pay in taxes during the year if he refinances. Additionally the homeowner can run these equations several times to consider a number of different scenarios.

by Manuel Oborny

Read More

The Decision to Re-Finance

The decision to re-finance a home mortgage is a serious decision which should not be taken lightly. Homeowners should give this decision a great deal of consideration to ensure they are making the best possible decision for their financial situation and personal needs. Some factors to consider when deciding whether or not to re-finance is the type of loan to choose, the lender to choose, the costs associated with re-financing and the hassle of the process.

Consider All of the Options

Homeowners who are seriously considering re-financing owe it to themselves to consider all of the options available to them. They may have a friend who recently refinanced with a specific type of loan but this might not be the solution for all homeowners. Each homeowner should consider their situation to be individual and not likely to closely mirror the situations of others.

Some of the options to consider include the type of re-financing loan. The basic options are fixed interest rates and adjustable interest rates. There are also mortgages which combine these two options. The homeowner may have a specific type of mortgage in mind but the lender may or may not be willing to offer the homeowner this type of loan. Lenders are more likely to offer fixed interest mortgages to homeowners with good credit and adjustable rate mortgages to homeowners with poor credit.

Consider the Lender

Homeowners will also have to carefully consider the lender they select. This is important because not all lenders are going to be willing to offer the same interest rates and terms to the homeowner. Homeowners may have to receive quotes from several different lenders in a short period of time to make an accurate comparison. This is important because interest rates can change without notice and homeowners who wait too long to make a decision may find the rate they were originally quoted is no longer available to them.

When selecting a lender the homeowner should also consider how responsive the lender is to their questions. This is important because a lender who does not pay attention to the homeowner or respond to their inquiries in a timely fashion can make the process of re-financing considerably more stressful than necessary. Selecting a lender who offers slightly higher rates but is more responsive may be warranted.

Consider the Cost of Re-Financing

Re-financing is not cheap. There are certain costs associated with re-financing. These costs are typically very similar to the closing costs associated with securing an original mortgage on a property. These costs may include application fees, loan origination fees, property taxes, appraisal fees and other miscellaneous items. These costs can be quite extensive and homeowners may find they are often left paying more than the benefits they are going to gain from re-financing. In this type of situation the homeowner should make the decision not to re-finance because it is not a financially sound decision.

Consider the Hassle of Re-Financing

Let's face it; re-financing can be an absolute hassle. The time and energy spent researching different re-financing options and contacting lenders to see who will offer the most favorable rates can be quite taxing. A homeowner should consider the time and effort required for this endeavor in deciding whether or not to re-finance. Simply stated, refinancing is a hassle and homeowners may better spend their time with family and friends rather than running around trying to find the best rates in town.

by Micheal Eakle

Read More

To Refinance or Not to Refinance?

With interest rates for 5 to 30 year mortgages approaching amounts lower than 5%, thousands of home owners are faced with the age old question, "To Refinance or Not to Refinance?"

Currently banks are overwhelmed with mortgage applications, and about 80% of which, are for refinancing. It can be a tough call. Refinancing can result in steep penalties, but if the interest rate is low enough, you may free up some much needed cash flow. Just like any investment, refinancing is not something to be entered into without doing your homework.

Here are some key points to consider before you take the next step:

Rates have not hit 4.5% as yet, but they are close. You may want to decide whether it's worth waiting a little longer. Also, that 4.5% that they are throwing around, is an estimate. Larger loans above $417,000 will fall under a higher rate structure. It may also be worth your while to pay down your loan if you fall under one of the higher rate categories.

Lending terms are much more strict than a few years ago. Get your ducks in a row and ensure your credit is in good shape before applying. Three main credit agencies, Experian, Equifax and TransUnion will provide one free annual report and more copies may be obtained for about $10.

Nowadays, most lenders require 20% equity in a home before approving. If you have less than that, you may be required to make up the difference.

Add up the costs of refinancing (the points, appraisal and closing costs) and determine how long it would take to recoup those costs with your new savings. If you don't plan on remaining in your home that long, refinancing may not be the best move.

When you get a new rate quote from the bank, pay close attention to the points you need to pay. For example you may get a quote for $5.124% with no points, and 4.874% with 1 point. The value of a point equals 1% of the loan amount. Even thought the second quote is for a lower rate, it may not be worth it in the long run when you include the extra cost of the point charge.

The new rate should be at least 1% lower than your existing rate.

To save closing costs, ask your lender if they will consider renegotiating the terms of your existing mortgage without going through a formal application process.

Shop around for the best rates. Don't overlook the smaller banks and credit unions – they too are competing for your business.

Before you make a decision, sit down with a financial planner or lender. Take a copy of your current mortgage and have an up to date idea of what your home is worth.

by Carolyn Capalbo

Read More

The Basics of Unsecured Loans

Unsecured loans
may be the perfect option for those that need a loan but do not have anything to put up as collateral for the loan. With secured loans, people who have things such as a house or even a car have the assets to obtain a secured loan, agreeing that they will lose said asset should they default on the loan. An unsecured loan does not rely on any of these assets as collateral and is simply a written agreement between two or more parties that is made official by the signatures of both parties.

An unsecured loan can be as basic as an agreement between members of a family that borrow or loan money. If the borrower writes the lender an I.O.U., this simple borrowing of money has now become an official unsecured loan. In this case if the borrower should default on the loan, it can have many more repercussions than one may initially think. There may come to be hard feelings between the two parties and cause much tension in the family. The lender will have no real course of action except to take the matter to small claims court, if it was for a substantial amount.

Another popular type of unsecured loan is that which comes in the form of a credit card. These cards are given to the customer with a set amount as a credit limit, the amount of money that the customer is allowed to spend. In exchange for the card, the customer then agrees to pay back the money with additional interest charges, within a certain period of time. The credit card does not need anything to be placed up as collateral it is a simple written document between the customer and the credit card company, outlining all details of the agreement. This is not the only written agreement between the customer and the company however. Every time the customer purchases something and uses their credit card to pay for it, they must sign the cashier's slip. This is a further agreement that the customer will repay the money they just borrowed. Default on an unsecured loan such as a credit card can end up with the account being turned over to collections and the customer's credit history being very negatively affected.

Banks also provide unsecured loans in the same manner as credit card companies. The only difference is that instead of cards, checks are given or money is deposited directly into the customer's account. Before approving an unsecured loan, banks and credit card companies will both review a person's credit history and their current financial situation. These are the two main factors that you will want to concern yourself with when applying for these types of unsecured loans. Being employed is very helpful, as this proves that you will have money coming in the future that will help you to repay your debt. Having a good credit history also goes a long way in obtaining an unsecured loan so be sure to fix any mistakes and repay debts that appear on your credit report.

Read More

What you Need to Know about Personal Loans

Personal loans may be a good choice for individuals that find themselves in a financial situation where they need money quickly. Personal loans are thought to be unsecured loans because there is no collateral in exchange for the funds for the loan. Instead, there is simply an agreement between a company and an individual in which they have come to agreeable terms for a set amount of money to be borrowed and be paid back within a set period of time. A personal loan may seem like the right solution to just about anything but before jumping into a contract, there are a few things that you should know.

Before you apply for a personal loan, you need to look at your credit report. Companies, especially banks, are often wary of approving personal loans because they are much more at risk than the borrower is. Because there is no collateral, should the borrower default on the loan, the bank is left simply giving that money away. Although there is legal action that can be taken, that too is costly and takes time. Because of this, those with low credit scores and a lot of outstanding debt on their credit report may find it difficult in obtaining a personal loan. Before applying, it's important to get your credit report as clean as possible. Make sure that all the information on it is correct and start paying off debts so that you will have a more attractive credit report to lenders.

Income and expenses both need to be considered before applying for a personal loan. Income is important because the lending institution will want to know how much money you are making to determine how much of a loan you can afford to pay back. They will want proof of this income so they may ask that you bring paystubs and other financial records with you when applying for the loan. Although they will probably not ask to see a break-down of your expenses, it's important that you draft one up so that you will see how much you can afford to repay. High income is a great start but if your monthly expenses are also very high, you won't be able to afford that much of a personal loan.

When applying for a personal loan, you also want to make sure that the company you will be borrowing from is just as credible as they want you to be. Although there are many corner shops that offer things such as payday loans or other types of personal loans, you want to make sure that you are getting the best deal for your money. For this reason, reputable institutions such as banks are often most recommended. Although you may not get approved as quickly as you want to, these institutions are least likely to try and scam you or charge you astronomical interest charges. That being said, not all companies that offer quick personal loan approval are all fraudulent so it's important to fully read what they will offer and what they expect in return so that you know that you will not end up paying too much in the end.

Read More

Learning About FHA Streamline Refinance

If you presently have a FHA mortgage, you could be eligible for a streamline refinance and benefit from current low home loan interest rates. The term “Streamline” simply means there is little paperwork to supply the lender. As a result, it permits the homeowner a faster and easier refinance closing. An FHA streamline refinance typically has the following characteristics:.

• No minimum credit score requirements.
• No asset documentation such as bank statements, retirement accounts, etc.
• An Appraisal may not be necessary. If an appraisal is required for an FHA Streamline, the maximum loan is restricted to 97.75%. If an appraisal is not used, there is not a maximum loan restriction.
• Upfront mortgage insurance is decreased to 1.5% of the base loan amount (instead of 1.75% for a normal FHA refinance which is not streamlined).
• Any cash from proceeds to the borrower is restricted to $500. Here are some simple rules for homeowners to know when it comes to FHA refinancing:
• The mortgage to be paid off must be an FHA insured mortgage.
• The borrower can not have had a 30 day or greater mortgage late payment in the previous 12 months.
• Non-occupant co-borrowers are not allowed.
• The new loan amount is subject to FHA maximum loan limits in your geographical area.
• If a property has been converted to an investment property it can still qualify for a FHA streamline refinance if the existing mortgage is an FHA loan.

Now, to make sure you get your FHA refinance done correctly, use a mortgage company or loan officer whose company is HUD approved. The benefit is you get to use a company that is an endorsed HUD approved lender and that generally mean they have their own "in-house" FHA underwriters. This speeds up the time for approval and closing. Timing is crucial in today’s market as rate move up and down quickly.

If you're interested in securing or still have questions about how FHA Streamline refinances work for your individual situation or what the maximum loan limits are in your state, inquire below. To get started, you will need to gather the following information for a loan officer to review. The information will normally consist of the following:

• Subject Property address
• Estimated property taxes and home owners insurance.
• Original FHA loan balance from when you got the mortgage.
• Existing FHA loan balance.
• Estimated home value (appraisal may not be required).

Read More

Tips to Get Low Rates for Mortgage Refinancing

After qualifying several different lenders, authorize only the companies that can give you the best mortgage refinance rates to pull your credit.

When you refinance your mortgage, you need to consider that you will have to pay closing costs and other fees like points. Shop around to find the best mortgage refinance rates whether you are looking to avoid closing costs or not. Shopping around is till the most effective way to get the best mortgage refinance rates. What mortgage refinancing rates you are eligible for will depend mostly on your credit rating. If you have good credit, you will probably find several lenders vying to offer you a low refinance mortgage rate. Since most experts recommend that you only refinance when the refinance mortgage rate is two points lower than what you are currently paying, having good credit will work in your favor.

However, if you have less-than-excellent credit you will first need to examine whether or not refinancing is in your best interest. With poor credit you will definitely pay higher mortgage refinance rates. With very bad credit, you may find it difficult to refinancing at all.

Check to make sure your existing mortgage does not have any pre-pay penalties. Many homeowners select a mortgage that includes pre-payment or early pay penalty clauses. While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan's interest. If you want to do a mortgage refinancing that has these types of penalties, make sure you have enough funds to cover them.

Pay attention to interest rates and closing costs. A lender might be able to provide you with a lower monthly payment through mortgage refinancing with their company, but this does not automatically make them the best choice. If interest rates or closing costs are too high, avoid the lender in question. These two variables are often the deciding factor when it comes to making a final decision about selecting a lender for mortgage refinancing.

It is also good to ask questions about pre-pay penalties or any other types of penalties that might be associated with the mortgage refinancing. Often times, lenders will avoid this type of information if they feel it will be a deal-breaker that will prevent you refinancing with their company.

One more thing to consider is that there are many mortgage lenders out there, including banks and all sorts of mortgage loan companies and associations. Therefore, you should spend some time carefully selecting that you will be doing business with, particularly since you are prone to encounter the good the bad and the ugly while shopping around. Some lenders will go as far as waiving all sorts of fees and closing costs in order to attract potential customers. Mortgage refinancing , however, are usually higher and many homeowners don't realize this until it is too late. Once again, patience and listening to those who have already been where you are now will be your best friends.

The final point to consider while dealing with mortgage refinance rates is that they can vary quite a bit in a fluctuating economy. That being said, and even when interest rates may not be at all time lows, being able to refinancing your mortgage may prove to be very beneficial for you. Lowering your monthly payments can free an important amount of money for years to come.

Mortgage refinancing can become one of your smartgest financial moves.

Read More