Finance, Loan, Debt and Credit.

November 30, 2013

Credit Card Debt Settlement Programs – Must Do Steps In Order To Be Successful

Filed under: Credit — Tags: , , , , , , , , , , , — admin @ 12:46 pm

The global economic recession is making it increasingly harder to make enough money for nations and states and corporations to keep balanced books.

For the individual, even in highly industrialized and developed countries like the United States, it is even harder because the cost of wages are far below the cost of the basics of life. All this has resulted on an increased reliance on credit cards to pay for some very basic expenses like food and gas.

Hector Milla Editor of the “Federal Credit Card Relief” website — http://www.FederalCreditCardRelief.org — pointed out;

“…Despite this grim situation, there is a way, as an individual, to get out of this financial mess. It is called Credit Card Debt Settlement. This is a strategy to renegotiate your debts with your charge card, reducing it by as much as 60 percent or more. The 40 percent that you do pay will be considered as payment in full. You will then be freed from the burden of the debt and the stress of watching the amount owed go up every month as the interest on it begins to accumulate. In addition, debt settlement provides relief from the constant phone calls from collection agencies eager to get their commission by reeling your debt in. With a settlement in place, you can begin anew…”

These negotiations can be highly successful if one follows some specific steps. These steps can be undertaken by the debtor or by the debt relief agency that the debtor hires to represent his or her situation.

Usually, it is well worth hiring a professional company to work on your behalf. They are able to get you a bigger discount and the process is much faster. In addition, there is considerably less stress on you as you don’t have to deal with difficult credit companies.

Here are the steps that must be done to be successful. Not all the steps are necessary, as success may happen at any stage of the process.

The first step is to contact the credit company and make your case about why you can’t pay the outstanding balance and why you need a 60 percent, or higher, discount on your debt so that it can be considered settled.

The second step, should the credit company not be willing to be flexible, is to stop all payments. This will cause the collection companies to call. During each of these calls, continue to insist that you will make a payment if they are willing to settle.

The third step is to start putting the money that you were paying into a savings account.

“…The fourth step is to send the money in the savings account as the settlement money once the charge company understands that unless they work with you they will not get any money at all…” added H. Milla.

Further Information By Visiting; http://www.FederalCreditCardRelief.org

When to Consider Home Refinance

Filed under: Loan — Tags: , , , , — admin @ 12:47 am

When to consider home refinance is something that a lot of people struggle with.  Any time you are dealing with your home and your overall finances timing is important because it can mean that you can save a lot or just a little.  Each person will need to determine on their own, possibly with the help of a mortgage bank, when is the right time for them to refinance, if there is a right time for them.  When considering if now is the time for you, you should know that not everyone ever wants or needs to refinance their mortgage.

Is it Time for Home Refinance?

It may be time for your home refinance for you when you have an adjustable-rate mortgage and your rate is about to increase.  This is a good time to refinance because it can save you hundreds or even thousands of dollars, especially when you consider how much you could save over the course of the loan.  When you have an adjustable-rate mortgage you will need to be a bit more careful about refinancing because the normal rules, like not accepting the refinance offer unless your interest rate is two or more percentage points less than your previous loan, do not apply to you.  You simply need to look at the overall cost of each loan and determine if you really can save any money or not.

It may also be time for you to refinance if you would like to substantially lower your monthly payment.  Many people find that they need to reduce their monthly mortgage payment after they have been in their home for a few years to help pay for school or even pay off other debts.  You can look to see what it out there and see if you can improve upon your current interest rate.  Your ability to get a better rate will be dependent upon many factors, including current market rates, your credit, how long you have been in the home, and your income.  If you choose home refinance at the right time, you may be able to save up to three percent on your interest rate, which can be a huge savings!

Another time that you may want to refinance is if you want to reduce the term of the loan.  For instance, if you have a 30 year loan and your financial situation has changed and you would like to pay off your home in 15 years without a penalty, you may want to refinance and go with a 10 or 15 year loan.  This type of refinance will mean larger monthly payments, but you’ll have the home paid off in half of the time that you had originally planned, which can mean huge savings for you in the end.

As you can see, there are some occasions when it makes sense to refinance.  Even though there are some situations where refinancing really does make the most sense, you should still shop carefully and make sure that you are getting the best deal for your situation.  Remember that not all home refinance loans are created equal, so you should shop around and compare the offers that come your way. This way you can be sure that you will get the loan that will offer you the most stability in conjunction with the savings that you are looking for.

 

November 29, 2013

Meandering Thru the Mortgage Maze – Part 2

Filed under: Mortgage — Tags: , , , , , — admin @ 12:47 pm

In Part 1 a general understanding of mortgages was explored. Part 2 investigates the many different types of mortgages which can generally be classified into two groups: changeable and static. Static allows you to budget more effectively as you know the figures that you will be dealing with each month. This raises the question of why so many people appeared to choose changeable and lose their homes as their rates zipped up. It is difficult for many borrowers to resist the initial lower monthly repayments that are often offered on the changeable mortgages. This gives new home owners extra cash to repair and redecorate and sometimes an optimistic outlook can over-rule prudence. There are also genuine cases where a variable mortgage is advantageous; understanding mortgages can clarify these choices. Mortgages have both similarities and differences; interestingly most of the similarities are favorable for the borrower. -For instance you can usually move (called portering) a mortgage to a new property if you move house. This means that you will not have to pay a penalty for terminating the mortgage earlier than agreed.-Another advantage is that often when you sell your house and do not want to keep the mortgage on it, the prospective buyer can ‘assume’ the balance of your mortgage; this can make it easier to sell.-Renewal is automatic once you have been accepted into a mortgage scheme.-You can usually pay off a lump sum every year on the anniversary of your mortgage date. However, similarities aside, it is the differences between mortgages that are usually the deciding factors, and there is more variety of choice in the changeable or variable mortgages. These changeable mortgages come in several different forms, the most popular being:Adjustable Rate Mortgages (ARMS) start at a low rate (perhaps it is a giveaway that this is called the teaser rate!) and moves up to a higher rate after an interim period, usually of six months. There are also steady and/or irregular increases, which make it difficult for the home owner to keep up. These increases are also difficult to estimate as they are calculated on a formula based on the Lender’s Index and Margin. Two Step Mortgages lock the interest rate in for about seven to ten years; this later adjusts to a higher rate. This can be advantageous if you plan to stay in one place and know that your salary will increase drastically in the future i.e. if you are on an apprenticeship course). Lender Buy Down is a similar idea, with the interest rate gradually increasing and can be practical for the same reasons as above. All the above mortgages start off with a lower monthly repayment which increases over time. Any of these mortgages could be subject to the whim of the financial markets and/or a Lender’s formula. This means that they can change and if this means a big increase it could be insurmountable for the home owners. A mortgage broker can explain the positives or the negatives of a variable mortgage which will reflect your own particular set of circumstances. One of the alternatives to the above choices and one which is easier to understand is a Fixed Rate Mortgage, sometimes called a ‘locked in rate’ mortgage which means that once the term has been agreed, your monthly payment will stay the same for the duration of the term or contract.The contract can be for five years, or three or twenty or thirty. The interest rate will most likely be different for each term. A mortgage is usually amortized (completed) over a thirty year period, so you may have several terms in the life of your loan.When you first start paying off a mortgage almost all of it is simply paying down the interest, but as the years pass, your monthly amount will start to pay off more of the principal and less of the interest. This happens regardless of how many short or long terms you sign up for, as long as you are renewing each time with the same Lender. However, because of the high interest repayments in the beginning of a mortgage, it may be cheaper to rent if you plan on staying only two or three years in a new town. With a mortgage that has a locked in interest rate, even though the rate at which you are paying down the balance of your property is changing, your monthly amount does not change because you have signed for a fixed rate of interest for a fixed time. This static payment can buy a large amount of peace of mind!

Improving Bad Credit Ratings by Joining a Student Loan Consolidation Program

Filed under: Loan — Tags: , , , , , , , , — admin @ 12:47 pm

Whether you are labeled as bad credit or not, joining a student loan consolidation program is bond to be a great benefit for you. If you would like to improve your credit ratings join a student loan consolidation program. By consolidating your student loans, you will actually be applying for a new loan. This loan will cover all the other student loans you have taken in the past and thus improve your bad credit ratings, since you managed to pay back all your loans at once!

The advantages Student Loan Consolidation Programs Include

More than just improving your poor credit ratings, consolidating student loan debts will make your student loan repayment period much easier and flexible than it was supposed to be. You will be making one instead of multiple monthly payments (depending on the type of loans you have to pay back), thus giving you peace of mind, resulting in more time for finding a job and building your future.

The rate you will be paying is a fixed one which will not exceed 8.25%. In fact, many lenders offer rates low as 4.5% with an interest deduction of up to 60%. Take time to compare a few offers from at least 3 different lenders before signing the dotted line. There are many online student loan payment calculators free of charge and come in handy for this matter.

Should I join a Student Loan Consolidation Program to consolidate all my loans?

First of all it is important to understand that it is recommended consolidating your student loans when the total amount you borrowed is higher than $7,500. However, not every loan should be consolidated. Perkins student loans have a fixed, usually low rate and therefore should not be consolidated. Try to consolidate student loans that have a non stable and relatively high rate.

If you have borrowed bad credit student private loans or any other private student loans consolidating them is a good idea and will also improve bad credit ratings. Don’t make the mistake of consolidating private student loans with federal student loans. You will be paying a lot of money for this action. Therefore, consolidate them separately when you choose the student loan consolidation program you wish for. Find reputable bad credit student loans advice for the latest and best tips.

Bad Debt- How It Affects Tax Return

Filed under: Tax — Tags: , , — admin @ 12:46 am

Bad debt has been defined as that money that is owed to a creditor but which, he is not able to collect from the debtor due to some given reasons. This, in many cases, is the kind of money that makes many creditors go bankrupt as they are not able to keep the business running. While some clients will just be going through a rough time and therefore be rendered incapacitated, some will just decide never to pay up. Bad debt means, bad business to the creditor. This is because even record keeping and accounting become a big challenge for them. Do not forget that, it adds to the expenses of the business because the creditor has got to arrange for the collection of the money. Paying of tax also becomes a problem. To be on the safe side and to make your accounts work, it is advisable that you deduct bad debt from your records. However, this is only applicable if you had included that amount in your records of income. To have a better understanding of what the process should look like, you are advised to consult the Publication 550, Investment Income and Expenses, Publication 535 and the Business Expense publication. These will act as a guide through the process. Note that, there are two types of bad liabilities which fall into the categories of business and non-business. Those that fall under the business category emanate from the operations of the business. The non business ones are those that are accrued from loss of capital. It is described more in detail in the Part 1 on Form 1040, Schedule D. These ones are captured on a separate detailed statement attached to your return records.

November 28, 2013

So Mortgage Refinance it Is? Things to Consider Before Deciding

If done properly, home loan refinance is a very good idea. It can help you to shorten the length of your loan or to lower your interest rate, thus saving you money. To refinance successfully, the lender should be totally aware of the features, advantages and disadvantages this financial procedure has to offer. It is not rare to hear of people refinancing their home loans only to end up paying more than they were paying before. Uninformed decisions lead to bad decisions. Here are some things you should take into account before deciding to refinance your mortgage loan.

To Pay Points Or Not To Pay Points? That Is The Question

 Points are paid upfront and they represent one percentage point of the overall loan principal. If points are paid, the interest rate is lowered. One thing to take into consideration before deciding to pay any points of the new loan is the amount of time you will be residing in the property. If you will be staying for a short period of time, it will not be advisable to pay any points at all. The situation changes if you intend to keep the property for 15 to 20 years, in which case paying points would pay off in the long run. Many people are not aware of the fact that if you pay points on the new mortgage loan, you will be able to deduct the money amount from that year’s tax income return.

Going For A Long-Term Or A Short-term Mortgage?

Both types have their own advantages and disadvantages. If you decide on a short-term mortgage, you will be paying lower interest rates. You should bear in mind that the payments associated with this loan type are substantially higher compared to a long-term mortgage loan. If you opt for a long-term loan, then the interest rate will be higher, but your monthly payments will be more affordable. This will be a good choice if your job is unstable or your income is low.

Fixed-Rate Or Adjustable-Rate Mortgage: Which One To Choose?

This is one of the most important decisions related to mortgage refinancing, the amount of your future payments depend on it. Choosing which interest rate to go for should be based on how much time you are planning on staying in the property. Adjustable-rate mortgages are appropriate in case you are thinking of keeping the property from five to ten years, the initial rates are lower, but you take the risk of them rising steeply together with your monthly payments. Fixed-rate mortgages, on the other hand, offer somewhat higher interest rates, but they also offer peace of mind, which is priceless for many home-owners. The monthly payment is steady, no risks are taken, no ugly surprises are received.

Should You Lock-In The Interest Rate?

Locking in a rate is a safe move as it aims for extreme stability, this would be advisable if rates were on the rise or if you are on a tight budget and cannot afford to roll with the interest rate changes. The best thing to do is to discuss this particular issue with your lender and your accountant and listen to what they have to say.

Homeowner Debt Consolidation: Start a New Debt Free Life

Filed under: Debt — Tags: , , , , , , — admin @ 12:46 am

When an individual obtains loans to fulfill various personal needs and is unable to clear them due to some circumstances, then he falls under the grip of multiple debts. It ca be termed as a very bad phase in which individual has to take a lot of stress concerning the multiple debts. Multiple debts also create an impediment in availing future financial assistance. The only logical solution lies in systematically eradicating the debts. For this purpose, if you are a home owner and want to completely knock out the debts, you can take the assistance of homeowner debt consolidation.Home owner debt consolidation is a technique through which helps to wipe out the multiple debts. Debt consolidation means, here borrower merges all the existing high interest debts with a single manageable loan at low interest rates. This loan can be sourced from one of the multiple creditors or from a new one. Now, instead of answering to multiple lenders you are answerable to only one lender. This definitely reduces the mental stress of the borrower.

Home owner debt consolidation is basically a collateral based loan. To avail the loan you are required to pledge your home as collateral. Here you are entitled to borrow an amount in between £5000-£75,000 to clear the debts. As it is secured in nature, you avail the loan at cheap interest rates. The duration of repayment for home owner debt consolidation is 5-25 years. With a bigger loan amount, low interest rates and a longer repayment period, borrower can easily lead a debt free life.

Whenever you are looking for a debt consolidation loan, always go for low interest rates. As multiple debts carry a slightly high interest rate, it is better to merge them with a low interest rate. To avail home owner debt consolidation loan at cheap interest rates, you can take the help of online. By comparing quotes of the various lenders you can find a suitable lender offering home owner debt consolidation at marginal rates.

Home owner debt consolidation is a way to get rid off multiple debts which has been a major source of stress on your shoulders.

November 27, 2013

How School Loan Consolidation Can Save You Money

Filed under: Loan — Tags: , , , , , — admin @ 12:46 pm

Paying off your school loans is not the most pleasant experience, but it can be made easier if you pursue a school loan consolidation. Doing so will give you the peace of mind that comes from knowing that your debts are manageable. Regardless of which type of school you are preparing to leave, look into consolidating your school loans.
What is Consolidation?
Consolidating a federal loan is taking all of the student loan payments you owe and combining them into one lump sum. This allows students to have just one monthly payment to one lender instead of several payments scattered all over the place.
What is also beneficial about a school loan consolidation plan is that a student can usually get a little lower interest rate by choosing to combine all their loans together. Although the lower percentage may not be an extravagant amount, it can still make a difference when you are living paycheck to paycheck right out of college.
Federal loans are also nice to consolidate when you do have problems with an incoming salary because there are several options available to students who need to defer payments. Federal loans, even consolidated loans, allow a grace period of several months after graduation before a student must start making payments.
There are also low-income allowances when a student needs to defer payments for a period until they have money coming in the bank. The nice thing about federal loans is that federal laws regulate interest rates, not by the lender, so they will be a little lower than a private loan.
Applying and Consolidating
When it comes time to apply for a college student loan, you will have several options available. If you choose to go the private route, then your loan and payments will vary based on your credit history, as well as how high the interest rate is for your lender.
You will also lose the opportunity to consolidate your loan, since only federal loans are consolidated. If you go the federal loan route, then you can look into Stafford loans, Perkins loans, or other federal consolidation programs offered by some of the larger national lenders.
You should always shop around before making a final decision on a lender so you will be sure to get the best possible loan at the lowest rate. If you choose the federal loan route, then you will be able to consolidate as much as you need because there is no set limit on loan consolidation for student loan payments. You won’t have fees for applying for a federal loan consolidation, and very few penalties exist for these types of loans.
All student loans are different, but they all must eventually be paid back. The amount of time that you have is based on the amount of your loan and the rate of interest. You generally have 45 days before you are to begin repayment, so be prepared. Eventually, you might find you want a school loan consolidation.
All students who are bound for college have different needs. Because of this, you must investigate all of your options. Your financial aid advisor will help you gain a working knowledge of a school loan consolidation and the benefits associated with it.
Working with the right lender and working out the right plan for you will make your post-collegiate experience a pleasant one.

4 Killer Tips To Get Low Mortgage Rate Refinance And The Right Mortgage Loan

Filed under: Loan — Tags: , , , , , , , — admin @ 12:46 am

In this article I give you some light of the things you should go through, when you think to get low mortgage rate refinance, which is very constructive, and to avoid the negative aspects.
1. Home Mortgage Loans With Fixed Interest Rates.
Fixed rate means that the interest rate is the same during the whole mortgage duration, whatever happens in the economy or in your own financial status.This loan type is good for a person, who is looking for the same payment month after month.
There is no surprises and you cannot negotiate about low mortgage rate refinance afterwards.It is clear that if you manage to take the mortgage loan with fixed interest rate in the situation, when the interest rates are on a exceptionally low level, you will benefit a lot.
This means also that the economic trends, i.e. on what phase of the cycle the economy is, has a long term influence on the expenses of your mortgage loan.
2. Home Mortgage Loan With Adjustable Interest Rate.
This loan type starts usually with low interest rate, but the rate can change over time according the future interest rate level. So you in a way take the same risk as the general market or the index to which it is tied to.
These adjustable mortgage rate loans are best for the borrowers, who have an ability to take risks and who follow the economy and the interest rates.
3. Jumbo Mortgage Loans.
When you are in the process to get low mortgage rate refinance, you have to remember that in 2007 came a limit for home mortgage refinance loan, “confirming loan limit” of $ 417.000. So if your mortgage refinance loan goes over that, you will need a jumbo mortgage loan.
These new mortgage loans came from nontraditional lenders, which means higher interest rates. And if you now have a jumbo mortgage loan with a capital less than $ 417.000, you have to negotiate low mortgage rate refinance as soon as possible.
4. You Can Make The Comparisons With Good Faith Estimate.
When you do the refinance research, there is one good tool, which you can use, it is called Good Faith Estimate and you can ask it from every company.
By this simple thing you can compare different companies line by line. It really saves your nerves.
Now the companies must publish their terms in the same form without leaving out something.
It is very important that you do the comparison job carefully, like the whole research, because low mortgage refinance is a big and long term decision.
The comparisons are interesting, but still the most important thing is to set clear, measurable targets for refinancing. All offers are then compared with the targets, i.e, do they bring you the things you want.

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