Saturday, March 31, 2007

100% Refinance Mortgage For Consolidation And Other Purposes

Obtaining finance by this means is probably one of the cheapest ways of funding your needs. The interest rates you can obtain with mortgage loans are the lowest of the loan market and if you happen to refinance by a lower rate than the one you agreed to with your previous loan, you can save thousands of dollars at the same time.

Inexpensive Source of Funds

Refinance mortgage loans can provide funds with reduced interest rates and by obtaining a longer repayment program you can make sure that the loan installments are low enough so you can afford them without hassles. That's why the additional funding you can obtain with cash-out refinance loans is perfect for consolidation purposes.

Since these loans provide a fair amount of extra cash, you can use the exceeding amount to pay off outstanding debt. Chances are that this debt is mostly unsecured and thus, you'll be replacing expensive debt (especially if it is composed mainly of credit card and store card debt) with a cheap loan and end up with a single monthly payment.

Obtaining A Lower Interest Rate

If market conditions have improved since you obtained the previous mortgage loan or if your credit and income situations improved, it is possible that you may obtain a lower interest rate on your refinance home loan. This implies that you may be able to save thousands of dollars over the whole life of the loan.

A mere interest rate reduction of a single point can save you a lot of money. For example: A 7% APR home loan will cost you $700 every $10.000 each year. If the loan has a repayment program of 25 years, it will cost you: $17.500. However, if you can obtain a 6% APR instead, you will be saving $100 every $10.000 each year and thus, on the long run, you'll save $2.500. For a $100.000 loan, this implies savings of up to $25.000.

Debt Consolidation And Other Purposes

As explained above, these loans are perfect for consolidating debt. They provide cheap funding with which you can replace expensive outstanding debt and obtain a single and lower monthly payment you won't have trouble affording. However, even if you don't need to consolidate, there are other purposes that the money can have.

Since these loans provide inexpensive funding any purchases or projects that usually need higher rate loans can be replaced with them thus saving thousands of dollars. For example, you can use the money to finance a home business project, purchase business equipment like computers, finance the purchase of a car or motor vehicle, etc. Whatever purpose you have in mind, 100% refinance home mortgages can provide you with extra funding at very low interest rates.

Tuesday, March 27, 2007

Term Life Insurance Or Whole Life Insurance - Which Do I Choose And Why?

I've had several people ask me what the real difference is between Whole Life Insurance and Term Life Insurance, and which is the best option for them. As much as I'm willing to help, the best that I can really do is explain the difference between the two and the pro's and con's of each type of policy. This will allow you, the consumer, to make an educated decision before you purchase a policy.

Whole life insurance gives you insurance coverage for your whole life, as long as you maintain the premium payments. The policy will cover you up until your death or age 100, whichever occurs first. Some of the pro's of a Whole Life Insurance policy are that you will also build an account that has actual cash value. It works like this. A portion of the premium payments that you make are used to buy life insurance, while the remainder is placed into a savings account that will accumulate interest. You may borrow against this savings account later in life, if you need to, but you must repay the loan. This gives you a bit of piece of mind in case of an emergency like unexpected hospital bills, vehicle breakdowns, home repairs or any other of lifes little emergencies.

Some of the cons of Whole Life Insurance is that it's not cheap. The premium payments for whole life will be significantly higher than a Term Life policy would be. Another con is that as you get older the savings account feature becomes less attractive, for a first time buyer. For a younger person or couple, this makes more sense because they have their entire lives ahead of them, but for someone middle aged or above, I'd seriously look at Term instead.

Term Life Insurance is also just exactly what it says it is, "Term". This means that it covers you for a specific period of time or a Term. You could buy a "10 Year Term", a "20 Year Term", Guaranteed Term", ect. Does this make sense now?

Term Life is also known as "pure life insurance" because that's all you're buying. Some of the "cons" or differences between Term and Whole life are, unlike Whole Life policies, there's no savings account that accumulates or to borrow against. You are simply paying for insurance. Another con is that, as stated above, some Term policies are only for that specific Term or time frame, not your entire life. This means that your policy may not be renewable if you happen to become seriously ill. Some Term policies, such as Guaranteed Term, can be rolled over, but that's another story. You need to visit my website below and I explain it there.

Most Term policies are only for certain time frames. An example of how this can be used would be for the "breadwinner" of the household who is middle aged, the kids are grown, but still in college, he or she has been paying on their major assets, like their home, ect. for several years and they need some security to make certain that if anything happened, everything would be taken care of so that the family could go on without any issues, other than the loss of their loved one. A 10 or 20 Year Term Policy might be a good option for the fictional example above, depending on their specific circumstances.

Hopefully, you understand now why it's difficult to give specific advice to people without knowing their specific circumstances. Just learning the differences between these two more popular types of insurance policies should put ahead in the game of life insurance. Good luck!

Sunday, March 25, 2007

Many People Have Bad Credit, But Few Care To Repair It

Well, in modern society, the world is driven by credit, unless, of course, one is a millionaire, and even so, millionaires sometimes use credit.

When You Apply For A Loan

The first thing a lending company does is to ask for your credit report. This is as important as your Social Security Number. They want to know who you are and what kind of payment responsibility you have, they want to know if you have a steady job or a home business and whether you have a bank account or not.

This kind of information gives the prospective lender an X-Ray of your finances and will affect the quality of the loan that you obtain. What interest rate you will have to pay, the amount you will be able to apply for and whether you will need collateral or not. This is a security that the lender takes in case you interrupt your payments. It can be property, a car or some valuable of yours to backup the loan.

As You Can See

The information contained on your credit report is capital to the way you move about in life. If you can't use credit, you will have to use cash and the old savings "piggy bank" in order to save up for any purchase larger than your monthly capability. Today's economy moves on credit. It is like wheels that help it to move around. Whether it is a credit card or buying a car in installments, credit is a great part of our everyday life.

Bad Credit Ratings Can Be Repaired

Nothing is forever. All your financial "misdoings" are kept for seven years on the records, by law, and then erased. All entries must be accurate, obviously and all operations must be registered. Therefore, what is not registered must be informed. What is wrong must be corrected and what is outdated must be erased.

The source of these changes is none other than yourself, so you must take action and write to the credt bureaus and inform them about the correct data. Write in common language, since they don't like to be addressed "officially" and give proof of what you are informing.

It Takes Some Time

There is a minimum time frame for the changes to appear on the report, but in around 30 days you will begin to see the new info. From this moment on, every loan you apply for will have to be perfect in payments and timing, so as to build up positive records. If you add up the amount of cash you can save on interests by having good credit, you'll be surprised.

You can do the math by getting free quotes. Test it. Give a different name twice running. On the first occasion, enter "bad" credit and on the second enter "excellent" and watch what happens.

Friday, March 23, 2007

How To Repair Your Credit Report

A credit report is run on a buyer when he or she needs to purchase something that volition take a long-term loan, such as as an automobile or a house. The credit report can come up from one of three agencies – Equifax, Experian, and Trans Union. Each of these three agencies utilizes their ain techniques of arriving at a credit score and receiving credit information, so attention should be paid to all three. A credit report score can travel up to 800, and an addition of 50 points is a large one, enabling borrowers to get loans they previously were denied, and getting loans at much better interest rates. A 1% driblet in an interest rate on a $150,000 house, for instance, may drop a payment by over $100 a month, saving the borrower over $35,000 over the life of the 30-year loan.Each of these credit agencies have got taken all the financial information they can happen about you and tabulated a credit score from those results. Information will include your current and former home computer addresses and employers, the credit cards and loans you have, and any late payments made over the last 10 years. These agencies’ credit reports will be very similar, but there will be differences, as they all brand mistakes, and the banks and credit card companies giving them the information do mistakes, too.Here’s where you can better your credit score. Any petition for a change in information in a credit report must be answered and corrected within 30 years because federal law modulates the credit bureaus. If you compose in to a credit agency complaining that one of the late payments on your credit report is wrong, they must look into and right the information within the 30 days, or cancel the information. Because this deadline is very hard to make, often the late payment report is simply deleted off of the credit report. This process is very slow and time-consuming, and you can either make it yourself or engage an agency to make it for you. Each missive should only petition 1 change, otherwise the credit agency will usually declare the petition to be frivolous and thus they are not required to make anything. Each missive should be written to all three credit reporting agencies. These agencies, Equifax, Experian, and Trans Union, all have got polonium boxes specifically put up for complaints, but they change the polonium Boxes often to do it hard for clients to find. Every calendar month you, or the agency you have got hired, should direct out another missive referring to a different error in your credit report. After many months, your credit report will demo many fewer late payments, perhaps even none, and your credit score will have got improved dramatically.

Thursday, March 22, 2007

Why You Should Start Budgeting Your Finances For Yourself And Family


Here are twelve good reasons to get you started:

1. Family budgets are used as a baseline, analysis-tool and roadmap. It is a useful tool and guide. It tells you whether you are headed in the direction you want to be headed in financially. It helps you to move from spending to saving and good fiscal balance, management and responsibility.
You may have goals and dreams, but if you do not set up guidelines for reaching them and you do not measure your progress, you may end up going so far in the wrong direction you can never make it back. Can you imagine the government or a major corporation operating without a budget? No, and neither should you.

2. It is often described and justified as an empowering enabler. A budget lets you control your money instead of your money controlling you.

3. A budget is a realistic estimate and true reflection of current circumstance and means, a type of financial situation-analysis that will tell you if you are living within your means. Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills.
There are lots of family budgeting tools available on line that make it a fun and enjoyable task and activity, to assess and analyze your family's financial situation with minimum effort.

There is also lots of free financial software and most of it sets up easily and provides you with a detailed family budget online. It manages your finances, hassle-free and almost effortless.
Well, almost! It will require input and minimum effort through hands-on involvement in setting it up, populating, maintaining and editing it. is a good example of market offerings that are available at no cost to you, just waiting for the motivated family budgeter to embrace and try it out!
Some websites offer free financial newsletters by e-mail, with lots of money saving tips, budget advice, and other relevant personal and family-related financial information
The availability, accessibility, virtual marketplace, ease of use and more of credit cards has made the need for family budgets much less obvious. Many people do not even realize they are living far beyond their means until they are knee deep in debt, struggling to make ends meet and sinking fast into murky financial waters.

Budgeting is and can be a life and money saver, a reality check, BUT ALSO a remedy!

4. A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.

5. Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you do not even remember buying.

6. A budget helps your entire family focus on common goals. It is unifying families in mutual purpose and effort, working together towards a successful outcome and reward.

7. A budget helps you prepare for emergencies or large or unanticipated expenses that might otherwise knock you for a loop financially.

8. A budget can improve your marriage. A good budget is not just a spending plan; it is a communication tool. Done right, a budget can bring the two of you closer together as you identify and work towards common goals and reduce arguments about money.

9. A budget reveals areas where you are spending too much money, so you can refocus on your most important goals.

10. A budget can keep you out of debt or help you get out of debt.

11. A budget actually creates extra money for you to do use on things that matter to you.

12. A budget helps you sleep better at night because you do not lie awake worrying about how you are going to make ends meet.

Nevertheless, despite all these wonderful reasons quoted above, people are still hesitant to commit to family budgeting as standard practice in their households. We might again want to probe a little deeper still and ask why?


Many people make an honest attempt to budget, but become discouraged and give up before they are able to accomplish any significant financial gain. The top three causes of budget failure come into play before you even begin to set up your budget. Awareness of these budget busters, is your first line of defense in the Battle of the Budget.

Budget Buster #1 - Negative Attitude

It cannot be emphasized enough--a positive attitude about budgeting is essential to your success. If you think of budgeting in negative terms (such as a financial diet, financial handcuffs, restrictive, penny-pinching, a sacrifice, etc.), you are sure to fail, unless you are a martyr or a masochist who finds some strange reward in a punishing experience. For purposes of this article, we will assume that you are neither.

A positive attitude means you think of a budget as a means to an end--a way to achieve your dreams and goals--and that postponing the instant gratification of spending all the money you earn is worth the rewards you will earn in the end.

Budget Buster #2 - Lack of Motivation

What is your motivation for budgeting? Are you trying to appease a nagging spouse? Following the terms of a debt repayment plan with a consumer credit counseling agency? Complying with an agreement made in bankruptcy court? These are not bad motivations, but they are external pressures and will probably not be easy to maintain over time. The best motivations are internally generated: do you honestly believe that budgeting can help you meet your goals?
If you need a little help in the motivation department, see "Twelve Reasons Budgeting Can Improve Your Life". A quick re-read of these will surely inspire and ignite a motivational spark or two!

Budget Buster # 3 - Unrealistic Expectations

What do you expect to gain from instituting and following a budget? Do you think that setting up a budget will reveal large caches of hidden cash or that the budget fairy will sprinkle fairy dust over your budget and magically transform your spending habits after a month or two of tracking expenses?

The reality is that budgeting is an endurance event--those who stick with it, through thick and thin, will come out ahead financially. Do not expect miracles. What you WILL see if you stick with it is steady, measurable progress towards the goals that really matter to you.
Starting a budget without having a positive attitude, internal motivation, and realistic expectations, will probably set you up for failure. You can greatly increase your chances of success by ruling out the three biggest budget busters before you even begin.
Family budgeting – just the thought of it makes most of us cringe. However, mostly, we do attempt to curb our spending and live within our means. Others fall into bad habits, habitual spending patterns or impulse shopping and over-extend themselves, landing knee-deep in debt!
Ironically, one of the first remedies for any debt consolidation or repair strategy, is to take a long hard look at the budget and financial patterns within the household! It is almost like running a diagnostic.

To take a closer look, you are in effect placing your family dollars under a magnifying glass and microscope. This can prove both challenging and painful for most people. We hope to alleviate some of that initial discomfort and apprehension with this handy step-by-step guide and tips.
Most financial advisors will tell you that you have to reward yourself for good fiscal responsibility, discipline and habits, to increase your motivation and success levels.
Budgeting is the first step, sticking with and to it, a close second and the sometimes overlooked but ever-important reward, has to keep the motivation going! To repeat and continue to experience the benefit of the budgeting cycle and discipline could be an uphill battle, but there are calmer seas ahead.

Cash management, savings, planning for retirement, setting financial goals etc. active and hands-on, is becoming increasingly important for the survival and well-being of our families everywhere.

Be your own best expert with coming up with new ideas on how to save money, budget better and spend less! Your unique strategies stem from a deep understanding of your own situation, demands, and needs. Discover which tips and ideas work best for you. After all, fiscal management and finances are definitely not a one-size-fits-all solution environment. It is personal, customized and unique.

Wednesday, March 21, 2007

Credit Score Secrets Part 3 - Credit Scoring and Your Financial History

Your credit history affects your ability to borrow and even creeps up to attack how much money it costs you to borrow once you find yourself actually approved for something. Every creditor, lender or individual interested in someone as a prospective customer has a credit scoring system in place to use with the information you provide when submitting your application. An individual's credit report is essential to anyone out there seeking credit and is very important to any loan officer.

Many think of credit scoring systems as very vague "Wizard of Oz" type all powerful machines which control your number at a high speed. These credit scores are based on a statistical system however and are as easy to explain as the mystical "wizard". The systems that were created to calculate your credit score use real world data and enable the lendor or creditor to view the individual objectively.

Some of these include the number and the different types of bank accounts an individual has, outstanding debts, history of bill paying, debt to credit ratios, any collections accounts that have been brought against the individual, bankruptcies and other factors determined more by the individual and his or her financial portfolio.

By comparing the history and background of one individual against the background of thousands of other consumers with financial situations and payrates that are similar, one can better predict the outcome of a loan offer made to this individual. It is easier to predict future habits based on the person's ability in their past and see whether it is likely that debt will be managed well and repaid in the agreed upon time.

The mathematical system used by credit scoring systems has proven to lenders that it can be a strong predictor of one's future ability to repay their credit or debt to an individual company. The system created was designed to place more emphasis on history and less emphasis on individual statistics, which are variable.

You can request your credit report through a number of ways but it will not help if you do not have the education and knowledge in order to read it and determine what you can do to raise your own credit score. Make sure to arm yourself with the knowledge through the right book, audio tape or program and you can put your credit report to work for you and be on the path to a better credit score.

Monday, March 19, 2007

Why You Should Take a Rich Person to Lunch and Pay for the Lunch

You should take a self-made rich person to lunch whenever you can and you should always pay. Why? Read on and all will be revealed.

Let's take a look at the first part first. Why should you take a self-made rich person to lunch?

The self-made rich don't get there by accident. They weren't broke up until one day when they went to their mailbox they found that someone had left them a check for a few million dollars. The self-made rich got rich because of what they know, how they think, what they do and how they do it.

Do you think that if you knew what they know, thought like they thought, and did the things that they do, in the same way that they do them, that you too may become rich? I think that you would find that indeed you would become rich by following that formula.

But why take them to lunch (or dinner)?

The self-made rich have learned that their time is very valuable. You may be able to buy some of their consulting time but it won't come cheap. For example, my standard consulting rate is $2,000 per hour and I know people, far richer than me, who charge $20,000 for an hour, or more, for their time.

But even the rich have to eat sometime. If you can be fortunate enough to find a time when they are eating, and it is not a business lunch, then you may be able to share that time over a meal and learn a tremendous amount without paying the huge consulting fee.

Also, when that rich person is having lunch he is probably more relaxed and open to conversation.

What do you think a self-made rich person likes to talk about? You will probably find that his two favorite topics of conversation are himself and the things that he is doing to make money. The self-made rich get that way by following their passion and learning how to leverage that passion so that it provides them with a large amount of money.

If, after a brief rapport period, you ask him a question about himself or his passion then you will probably get a flow of incredibly valuable information, which you should write down. Don't be afraid to ask clarifying questions. Asking clarifying questions is a good listening skill and it shows that you are interested in what the speaker is talking about.

Okay. Why should you pay for lunch? After all, that rich person can afford to pay much more easily than you can.

In order to become rich you have to develop rich thinking. Expecting a person who has just given you a fortune's worth of free information to then pay for his own lunch is definitely poverty thinking. With an attitude like that you will never become rich.

Rich people know how to give and how to receive, and above all they know how and when to show appreciation and gratitude. By developing those same qualities in yourself you will open your mind to the style of thinking that will allow you to also become rich.

You may be thinking "but what if I can't afford to buy lunch?" All the more reason why you need to develop rich thinking or you'll continually find that you can't afford to buy lunch.

Poor people tend to have a hand out mentality. They expect the government and the rich to pay the bills and they always have their hand out for something for nothing. Something for nothing is 100% poverty thinking.

The rich understand the law of reciprocity. That law states that you reap what you sow. You have to give in order to receive. Most rich people are getting rich by giving valuable solutions or happiness to a large number of people.

For example Bill Gates, through his company Microsoft, has given hundreds of millions of people the opportunity to use a computer without the need to understand how to program a computer. In return for helping so many people, he has made an enormous amount of money. It's the law of reciprocity in action.

The average person has helped virtually no-one and in fact expects others to help them whenever they need help. As a result they are broke.

I suggest that you read this article a second time and think about what is being said. Then, if the message is sinking in, think how you could take a self-made rich person to lunch or dinner and pickup the tab.

Saturday, March 17, 2007

How Many Credit Cards Should You Have?

So how many credit cards do you have in your wallet. Do yo have promises of better rates, lower fees, more airmiles or better perks causing your wallet to be full of cards and your mailbox full of better offers.

Most Americans carry five to ten cards while some have five times this amount. This is bound to cause havoc on your credit score, never mind being able to manage them.

So how many credit cards is enough. Whilst experts agree that there is no exact number it is more realistic to note how much you spend and more importantly how much you can pay off monthly. Credit agencies warn that the more cards you have, the bigger risk you have for debt and damaging your credit rating.

A good rule of thumb is to keep up to six and to make sure that they are the major ones, MasterCard, Visa, Discovery and American Express as they acceptable almost anywhere. It is most important to pay them regularly and on time to avoid any further charge and find a credit card with low interest rates. Credit cards that offer reward points, air miles or cash back give you something back and the interest rates on these cards doesn't have to be low if pay off the credit every month.

Beware of store credit cards. Each time you open a new store credit card 20 points are taken off your credit score. This is because they are issued to all and sundry, to people who can't otherwise obtain credit. Store cards are often opened, especially leading up to Christmas to get 12% to 15% of purchases but beware the interest rates are much higher. It's fine to obtain the discounts, pay off the balance and close the card. If your shop regularly at the same store then by all means open a credit card to obtain discounts, coupons, bonus points and other perks but just have the card from that one store.

Keep your debt ratio low, under 50% is good. If your credit card has a limit of $3000 don't carry a balance of more than half, $1500. If you want to make a large purchase then split it onto two cards. Creditors do not like to see a card almost up to its credit limit, they will look at you as somebody who is using too much credit, a greater risk who may have trouble paying off the debt. Idealy you should keep your balance low, less tha 30% on each card.

Make payments on time, one or two late payment can really bring down your credit score and increase the rates on your other cards. Remember you are the person responsible for payment.

Credit cards when used sensibly and carefully are great. They offer the user so much cosumer protection and they are so convenient. If you have credit cards then you have credit history. Obtain a copy of your credit report, check it for any inaccuracies and correct any problems. Then slowly, one per month, there is a reason for this, close unused accounts so as to have the recommended number. Keeping the oldest cards, especially if you never missed payments, makes sense as you then have a lengthy and successful credit history.

Having fewer credit cards makes it so much easier to manage them. It is easier to remember payment dates and so avoid late payments and the worry of late payment fees. Also as credit cards increase their minimum payments it will affect your monthly outlay just to meet the minimum payment. Just remember, it is you who is responsible to make your payments and keep on top of your credit.

Friday, March 16, 2007

Disposable Credit Card Numbers

Disposable diapers, disposable cameras- and now… disposable credit card numbers? They're actually referred to within the industry as virtual credit card numbers, and are currently being offered through most major credit card issuers.

Virtual credit card numbers are single-use numbers that expire within a month or two of issue, and are used for shopping online in place of the number that's actually on your credit card. What's the point? The number is only good at the one web site where you make your purchase, and only for a limit period of time- so if hackers have obtained your credit card number during an online transaction, the next time they go to use it, it will not work.

When a customer receives their credit card statement after shopping with virtual credit card numbers, the purchases show up on the statement exactly like any other purchase. Some card issuers will provide the virtual number used to make the purchase along side the charge, for reference purposes.

Why Virtual Credit Card Numbers?

One of the main reasons why some people choose not to shop online is because of their fear of credit card theft and identity fraud. The potential for personal information to be found online is a real concern- and is proven by a survey in September 2002, where over 7 percent of online shoppers surveyed claimed to be victims of credit card fraud.

Even though almost all credit card issuers promise a zero liability policy for unauthorized charges and online purchases, consumers are still concerned because of the potential for further damage. Sometimes it is difficult to get errors removed from a credit report, for example, even after being the victim of identity theft. Using virtual credit card numbers can eliminate the potential for hackers to use the card data to make purchases and discover more information about a consumer.

Disadvantages of Virtual Credit Card Numbers

While virtual credit card numbers offer many advantages over shopping online with your regular credit card number, there are also some instances when using a virtual card number has disadvantages.

When you purchase theater tickets or airline, hotel or rental car reservations with a credit card number online, you are supposed to provide that credit card when you go to pick up your tickets or when you check into the hotel or get your rental car. If you've used a virtual number, you won't have the ability to hand the clerk the credit card with a matching card number.
Recurring expenses are also a hassle using a virtual credit card number. By the time the next purchase period comes around, your number is likely to have expired.

Take Precautions Against Identity Theft & Fraud

You can take some precautions to help minimize your potential to be a victim of online fraud due to shopping online- with or without having a virtual credit card number.

Before making a purchase, make sure the website uses a secure or encrypted site to handle the transaction of your payment information. Most sites use the SSL (secure socket layer), and is recognized easily by a url beginning with 'https' instead of 'http', and often by a little locket symbol on the screen.

Always monitor your credit card statement and make sure all transactions were authorized. If you suspect there is a problem, contact your credit card company immediately.

Use a paper shredder to destroy credit statements, pre-approved credit card others, bills and anything else containing personal information before you throw them away. While many identity thieves are high-tech and use the internet to find their victims- some still dive into dumpsters to get their information!

Wednesday, March 14, 2007

The Wright Place - Finances

Women have a love/hate relationship with money. Most of us do not enjoy dealing with it, yet we know not having finances under control will cause our entire family to suffer.

A recent guest on the show Karen Franks, explained how important your credit is and how you should check on it often. ‘At least twice a year”, says Karen Franks. Checking our credit is one important proactive way we can make sure we are in good financial shape. She also mentioned that many married women have better credit score than their husbands, even if they do not make as much. When another show guest, Dan Contreras talked about financial planning, he stressed using a professional. ‘Don’t rely on hearsay, get some real understanding about your situation.” And Linda Hollander the author or Bags to Riches says “Mentors are the fast track to success”. Find someone who has reached the same financial goals you want to reach and then do what they did. This simple technique works even if your goals are modest. While everyone’s situation is different, I really just want to motivate you to do something to have a positive effect on your finances. Here are a few simple things you can do that will start the ball rolling.

1. Get a copy of your credit report and check it for errors( free if you have been turned down for credit)

2. Look at your savings plan, are you on track, do you need to increase or decrease the amounts you are trying to save?

3. Look for your insurance policies, be able to get them immediately, know exactly where they are.

4. Start some financial education with your children. Start a student saving account.

5. Start planning next year’s financial goals. What do you want to change, what goals do you want to accomplish, what new accounts do you need to open and which accounts should be closed.

If you handle your finances you’ll be in The Wright Place!

Get Online Debt Consolidation With An Ease

Are your debts mounting high? Are you not getting the ways to get a relief? Please don't get disheartened as you can free yourself from the tentacles of various lenders by opting for online debt consolidation. Online debt consolidation saves your time and money. You can apply online debt consolidation from anywhere and any time.

Online debt consolidation loan helps you pay your business debts, personal debts, credit card debts. It provides you with the tool of comparing different loan quotes, repayment term, and low interest rate with a click of mouse. This method makes you search an ideal deal; all you require is fill an online application form with your personal details. Then after you are approached by a number of lenders helping you crack a better online deal.

Online debt consolidation can be taken against collateral in such cases the lender offers you loan amount with more competitive rate of interest and favorable terms and conditions. The collateral provided makes the lender secure against any non-payment of loan. But in the other case the debt consolidation can be taken against no collateral. Here the lender can charge you high rate of interest but when you search minutely then the loan amount can come to you at a reduced interest.

Online debt consolidation takes account of your credit history. Good credit scorer can get the loan amount at a reasonable interest rate but bad credit get the amount at high interest rate as you become stray in the loan market. But with the huge competition in market, bad credit is no more a taboo and you land up with a better deal. The repayment of debt consolidation amount is planned as per your convenience and pocket.

Thus, online debt consolidation brings a difference between your past and present situation, i.e. Previously you were made to pay number of lenders but now you land up with a single lender. Above all, it helps you in saving money and being debt free!

Monday, March 12, 2007

Beware the Shopping Mall Monster

Like me, you’ve probably been offered a fair old number of these by now...

..and, if you’re like most people, chances are you maybe own at least one or two.

They always seem to put in an appearance at just the right (or wrong) moment...

It might be Saturday and you've just seen the clothing item of your dreams.

That can be a pain, though, if this month’s paycheck isn’t due for another week.

You're undecided.

Until, that is, you're offered...

..a store card.

One of the horrible ironies about store cards is that the vast majority of people who sign up for one actually had no intention of making a purchase before they left the house.

But if you’re caught in the above situation, the convenience factor frequently wins the day, doesn’t it? Add on top of this all the little goodies thrown in as a sweetener...

An introductory discount on goods – typically around the 10% mark – extra money off during sales periods etc...

But let me tell you what the sales assistant probably won’t...

For starters, did you know that many department stores will currently charge you anything up to 30% interest on that little card they offer you? (yes, even those ones with the pretty pictures.) That’s around double the interest of your standard credit card!

Sound scandalous?

Well, hang around... it gets a lot worse!

Here are just a few of the pitfalls you should look out for the next time you’re offered a store card...

Buy now, pay within the next three months. Sure...great deal if you do actually manage to pay it off within that time. If not, some stores will charge you interest from the first day you bought!

Ask questions: In a recent study, it was found that in one third of cases, information on the interest rate on the card (among other things) was not freely available.

Don’t be tempted to take out expensive and often useless insurance. This can be a monthly amount of 1.5%. With interest repayments of 30%, you could end up with an annual rate of 56%!

Also, steer clear of any payment protection insurance scheme. If you were to lose your job or couldn’t work due to illness or accident, you’ll find that this ‘insurance’ generally only pays the minimum monthly payment, not the whole balance!

Be on your guard. Staff will usually ask you to fill in the application form in store. In many cases the insurance box will already have been ticked and you will simply be asked to sign up for insurance.

Study the terms and conditions carefully in the store. Staff have been known to refuse customers to take away the form.

Probably the worst thing about store cards is that it’s very easy to build up an array of them so that, before you know it, there seems to be more of them in your wallet than there are coat hangars in your wardrobe.

And in what seems like no time at all...

.. you’ve just spent way, way beyond your means!

If you feel you must buy on credit why not use a credit card with a low or even 0% rate? After all, if you’re going to have debts, you may as well make them cheap ones!

A store card might seem handy and convenient but they generally come with a horrendous hidden cost.

So next time you’re a tempted to take on another piece of plastic, make sure you get all the facts up front.

Your bank balance might just thank you for it.

Copyright © 2004 by Colin McCaig

Sunday, March 11, 2007

Learning the Disturbing Facts about Credit Card Debt

When Iodine received my first credit card in the mail at age 18 I was ecstatic, I said to myself, wow now I’m getting somewhere in life. This credit card company believes I’m worthy of 500 dollars in credit. So I made my monthly payments like a good consumer and watched my credit bounds grow. I thought male child this company must believe alot of me to take such as a risk. I however had no thought how the money came into existence. All Iodine cared about was that as long as when I slapped the plastic down I was approved. Like most immature people I had no thought what an interest rate even was much less how it effected my monthly payments. I was like a batch of children in America today, my parents were not a large portion of my early grownup life and so I really didn’t have got much counsel when it came to making financial decisions. The lessons I learned were hard and I go on to learn as each twenty-four hours passes.

After all what is credit? When you get that “Pre-Approved” application in the mail, makes that average that the credit card companies have got been watching you personally and are rewarding you for having so called “good credit,” Of course of study not, they are looking to make money just like any business, and they are making a batch of it.

Today there are thousands of people who are losing their homes, farms, and businesses because they do not understand the significance of credit. This article will explicate the difference between money and credit and will demo you how the banks make "credit" and make-believe that it is "money".

There have been a pecuniary argument in our country for some clip now and that argument focuses on two cardinal issues. First that lone gold and Ag are Constitutional money Article I Section 10 clause 1U.S. Fundamental Law and second that the dollar is defined by the Mint Act of 1792, and that a Federal Soldier Modesty Note is not a dollar. There is a 3rd country that is not well understood, but which is very important. It is the most of import issue of all because 97% of our money supply today dwells of bank credit whereas Federal Soldier Modesty Notes and coins dwell of less than 3%.Today every bank loan in the United States can be legally voided because it is based on credit instead of money!

YEAH RIGHT, you say. Well Iodine have got got explored that accusation for over a twelvemonth now and here is what I have found. One must inquire the question, “What is Credit?” after all we throw the word around so freely today, but how many of us truly understand its meaning. Credit is the antonym of money. Money is legal legal tender for the payment of debts as defined by United States Congress in 31 U.S.C.A. Second 392. This subdivision basically depicts all coins and currency issued by the U.S. authorities as legal legal tender for all debts, public and private. Many volition reason that Federal Soldier Modesty Notes are Unconstitutional, but for this article it will be assumed that coins and paper currency both stand for money.

Now let’s presume you are going to do a purchase state for an automobile or a life room suite. You might state that your credit is good or that your promise to pay is sufficient. In other words the marketer trusts that you will pay the money back. At that point you subscribe a loan understanding in which you pledge the auto as collateral for the security agreement. In other words the auto dealer have accepted your credit, your promise to pay, in exchange for the auto.

Ok here is where it begins to get interesting. Now see a bank loan. When you travel to the bank for a loan, based on your promise to pay and your good credit the bank gives you the loan right? The bank have accepted your promise to pay the money back, but inquire yourself this question. What exactly did the bank loan you? Well, the bank will invariably give you a check which is also a "promise to pay" you so many dollars, with interest. What you and the bank have got is a isobilateral contract when you exchange "promises to pay". In other words you have got accepted each others credit, and yet no money have exchanged hands. This is an of import point; no “money” have exchanged hands.

Now what make you make with the check? Probably one of two things: either you sedimentation it in your checking account or you convey it to your car dealer. Either way, when the check gets deposited it travels directly to the banks clerking section and the numbers from the check are entered into your account. Now the bank will state that its sedimentations have got increased, still no “money” have exchanged hands.

These clerking entries are called “demand deposits” significance that the client can walk into the bank at any point in clip and demand the sedimentation from the vault. In accounting terms, the money is placed into the banks liabilities column because this is money that the bank owes the people.

Now what make you believe the bank have for assets? Well it have a small amount of burial vault cash which the Federal Soldier Government necessitates them to maintain on manus and a whole batch of IOU’s for those full loan understandings people mark their name calling to. The bank is gambling that not every client will come up into the bank at the same clip and demand their money in cash and it’s A pretty good gamble. All those promises to pay are on paper so also are all of the bank assets.

All this amounts to is a transfer of numbers or book entries from one checking account to another. The same thing haps when you compose a check. Numbers called "dollars" are transferred from your checking account to individual else’s. When a credit card is used, bank credit or book entries are created and transferred to another person at the same time.

The adjacent inquiry is, if it so easy for a bank to make “credit”, which is used like money, how then is this “credit”, destroyed? The “credit” is destroyed when the rule of the loan is repaid. However, the interest collected by the bank on the "credit" it loaned, is transferred, to another account for statistical distribution to its stockholders.

What haps is that because 97% of the nation’s money supply dwells of credit which is all created by private corps (banks), and because interest is charged on every dollar of “credit” used, debts are constantly created for which no money or credit bes to refund these debts. Hence our money system can be best described as a “debt usury” money system, for every dollar of credit which come ups into existence, a debt is created to the banks and interest (usury) is charged.

Under our present money system, the Federal Soldier authorities will never be able to balance its budget and the national debt will go on to turn exponentially. However, every bank loan made in the United States today is illegal, since all bank loans are based on “credit” instead of “money”! The words “ultra vires” are of import words because they intend that “a contract made by a corporation beyond the range of its corporate powerfulnesses is unlawful.”(see Black's Law Dictionary)

The tribunals have got consistently ruled that banks cannot impart their credit, but can only impart their money and that all loans of credit are “ultra vires.” Since no bank charter gives them permission to impart their “credit”, and United States Congress never gave the banks permission to make money, all such as loans of credit are ultra vires or unlawful. The bank, by loaning credit, have unjustly enriched itself. It pays no interest for the usage of its credit but charges its clients the same amount of interest as if it loaned out its money.

These patterns are a high degree word form of loansharking. It is misrepresentation and fraud. The aggregation of interest on credit is in misdemeanor of all vigorish laws. After all, the bank is collecting interest on money which doesn't exist. There are many programs today such as as a peculiar programme which I represent, Debt Solutions International (DSI.) There are over two trillion dollars worth of illegal bank loans out there waiting to be challenged. A programme such as as DSI’s is a much better option to bankruptcy since you get to maintain your property and nothingness the bank loans at the same time.

Anyone can walk off his property and allow the bank have got it, but to make so is to reward them for their fraudulent acts. It would be much better to litigate the bank on fraud and vigorish charges and inquire that all contracts which you signed on the twenty-four hours you took out the loan be declared “ultra vires”, nothing and void. That includes works of trust, mortgages, short letters and security agreements, but particularly credit cards.

For a long time, nationalists have got got been authorship to their Congressmen asking them to give us an honorable money system without extortionate interest rates and they have ignored us. I am not an expatriate, I still believe in my country, but our current fractional modesty banking system must be eliminated. If we make not make something our children will pay the terms of inheriting our debts. I believe with the powerfulness of the internet, consumer instruction volition go so powerful that the banks and the “powers that be” will ran into their match. People will see that programs such as as those offered by DSI and others are nil to be afraid of and will go mainstream.

Saturday, March 10, 2007

The Benefits Of Having A Hotel Rewards Credit Card

There are many benefits to be had from using a hotel rewards credit card if you travel extensively. This type of card can save you loads on your next trip. With most of these types of credit cards you will earn bonus points when you stay at a hotel, which is why they are such a great idea for frequent travelers. We will look at a couple of different hotel reward credit cards that are available and the benefits that they provide.

1. Choice Privileges

This is a combination of many hotels that are located in Mexico, Canada and the USA. The holders of such cards have the chance to win great rewards and these coupled with great hotel rates make them the ideal choice for those traveling on a regular basis.

They offer their customers an extremely competitive introductory rate for the first 6 months. But after this, cardholders can still take advantage of the low and affordable fixed rates of interest on any balance transfers or purchases that they have made.

Rewards on this card are based on purchases made using the card and will commence from the first purchase made. The card holder can earn up to 8,000 points which means that from your first purchase you have earned your very first free nights stay at any of the 1,000 Choice Privileges hotels. In addition, each time you make a purchase at a Choice Privileges hotel you will earn 15 points whilst all other purchases will earn you 2 points for every $1 spent. As you continue to earn points, you will be able to use these points to exchange for free nights stay at any of their participating hotels.

2. Citi Hilton Honors

This credit card is from Visa, Citibank and the famous Hilton Family. It is the perfect way for anybody to earn points, which can then be put towards travel expenses to hundreds of different destinations. This particular card is accepted around the world.

Once you make a purchase within 60 days of getting your credit card you will be rewarded with 10,000 Honors bonus points. Such points can also be easily earned on a regular basis. You will receive 2 points for every $1 that you spend on Internet purchases. In addition, you will earn 3 points for every dollar you spend at any Hilton Family Hotel. These points can then be used towards both hotel and airline rewards as well as redeemed for exotic vacations or cruises. You can even use them to purchase entertainment or merchandise from brand name companies such as Hilton, Coral by Hilton, Embassy Suites Hotels, Conrad, Hilton Grand Vacations Club, Hilton Garden Inn and many more.

As you can see there are many benefits to be had from having a hotel rewards credit card in your wallet. However, just like any other credit card, you should use it responsibly and not go on a shopping rampage just to accumulate reward points. If you are frequent traveler, you should consider getting one and it will save you a significant amount of money for hotel stays.

Friday, March 09, 2007

Best Debt Consolidation

There are so many companies that offer debt consolidation services that finding the right one for you might be quite intimidating. There are a few questions you can ask about a company to find out if they might be the best option for you.

If you are struggling with paying your credit card bills each month, a debt management plan might be the best type of debt consolidation for you. Debt management plans allow you to pay off your bills through one consolidated payment to the debt management company. The company then pays your money to each creditors in specified amounts. You will be able to see your accounts steadily decrease in balance. In most cases, this will allow you to pay off your debts in less than five years.

The biggest benefit to a debt management plan is that the agency is able to work out a reduction of fees on your accounts. This allows more of your money to go to paying off your actual debt and not just the interest. The debt management company also provides you with the accountability you need to reach your goal of freedom from debt. Paying in one consolidated payment per month, especially when taken directly from your checking or savings account, decreases the likelihood that you will forget to make the payment and saves you time when paying your bills.

Once you have decided that debt management is the best type of debt consolidation for you, you will want to make sure you work with a reliable company. It is always best to go with a nonprofit debt consolidation agency. They can offer you lower rates and there is a smaller chance that you will be taken advantage of. You should also check with the Better Business Bureau to make sure that they do not have any bad marks on their record.

Once you get started with your debt management plan, you can watch your credit card balances decrease each month as you make your payments. In less time than you might think you can be free from debt. It may very well be one of your best debt consolidation options.

Wednesday, March 07, 2007

Is Plastic Making You Happier?

If you’re like most people, you probably ain at least one.

And like most people, you’ve maybe never thought what it’s really costing you…

At a recent conference held by the Fabian Society at London’s Imperial college, one of the issues discussed was happiness, and, more than than specifically, why it looks to elude so many of us.

One of the decisions reached was that one of the top causes of sadness in the last 50 old age have got been people’s changeless desire to raise their degree of stuff wealthiness (especially in relation to others who have more).

As one talker noted, ‘We’re like children on a rainy Lord'S Day afternoon, impossible to please. We have got everything and nothing.’

You may disagree, but I can’t believe of a worse modern symbol of this changeless craving than the credit card.

Yes, I know, they might look a windfall when payday isn’t for another hebdomad and a half. Having ‘free’ money can be a antic thing...if you manage to pay it back on clip that is...

If you’re like a great many, though, and only managing to do that minimum monthly repayment, here are 4 things to believe about the adjacent clip you attain for that piece of plastic…

1 It’s very expensive!

2% interest a calendar month may sound like peanuts but that compares to 24% per year. Let’s imagine, like me, you lived in the UK, and had an average balance of £8000 on your card... that would intend you were paying £160 a calendar month interest. On the national average salary, that’s almost a week’s work!

2 It’s not your money

You’re actually paying person else for the privilege of making you poorer! That hard-earned cash should be in your pocket, not some lender’s. How can you stay solvent if you’re continually disbursement money you don’t have?

3 Money Burns a hole in your pocket

If you’re like me, I can wager you’ve met or cognize tons of people who always look to have got got too much calendar month left at the end of the money. Yet, I’ll stake you if they earned double or even soprano their income, they would still happen some manner to squander it. It looks to be in our nature somehow.

We’ve all seen those quiz shows where the contestants win large money. What’s the first inquiry they’re asked? Yep, that’s right, ‘How are you going to pass it?’ Iodine don’t recollection many replying they would wisely put it for their retirement.

4 You pass what you don’t have

Credit cards give you the semblance of being wealthy. Let’s human face it, if you were handing over a 1000 dollars instead of that small piece of plastic, you might just halt and have got a quick rethink.

It used to be the lawsuit that Gold cards (those 1s with the monolithic disbursement limits) were the continue of the wealthy, but the banks weren’t too long in realizing that if they gave these out to everyone, they would simply travel ahead and pass as if they were wealthy. We look to prefer semblance to reality, somehow.

Way back in the sixties, a French philosopher called Jean-Paul Sartre came up with a conception he called the Practico Inert.

Fancy terminology aside, he was trying to explicate in a nutshell how world almost always (and without realizing it) go captives of their ain creations.

He used the illustration of Chinese provincials who needed wood in order to supply combustible and edifice stuffs for themselves. The long-term effect, though, was that the continual loss of trees needed for wood gradually exposed their land to implosion therapy and drought.

Likewise, in our modern world, the credit card do a short-term illusion of freedom and control, but in reality, only makes you poorer and additions your dependence on others.

So adjacent clip you’re tempted to attain for that piece of plastic, halt for a second and have got a think about it’s true worth to you.

Is it really making you any happier, or like so many others, could it be seriously detrimental your wealth?

Tuesday, March 06, 2007

Secured Personal Loans for Those With Bad Credit History

Tired of hearing no for an answer from every lender in UK?
Do you feel helpless due to your bad credit history?

Relax! Now you don't have to be scared of rejection. You can get easy terms and conditions - secured personal loans even without a not so good looking credit history.

Your credit history

At first you need to know your credit history and your current financial situation. The credit score of a person in UK can range from 300 - 850.

If your credit score is above 750 - then you have a good credit history.

If your credit score is below 750 - then you have a low adverse credit history.

If your credit score is below 600- then you have a medium adverse credit history.

If your credit score is below 500 - then you have a heavy adverse credit history.

Many lenders might have gone through your credit history, credit score and Debt to Income score in order to find out what kind of a customer you would be.

You would be a prime customer for them -- if you have a good credit history.
You would be a near prime customer -- if you have a low adverse credit history.
You would be a sub prime customer -- if you have a medium or a heavy adverse credit history.

Secured personal loans are the best way to repair your bad credit score. You can avail a secured personal loan against your property like land or home. This would act as a collateral that would guarantee your repayment of loan amount to the lender.

With secured personal loans, you can borrow an amount that can range anywhere between £5000- £75000. The repayment of the amount can extend from 5 to 25 years. However these terms and conditions are determined on the basis of different criteria like your credit history, your DRI score and a lot of other issues.

The best way to get hold of the best possible deal is to research as much as possible with all the deals and offers you have at hand.

Monday, March 05, 2007

Personal Finance - Searching Google Resources For Family Business

When looking for an answer in personal finance or family business do you see dedicated sources or just junk linkers. No doubt there are few good sites dedicated to family finances but many commercially driven and present point of view of the Credit Card Company, bank or advertising party. Here are few tips how to find independent opinion on Google and get best advice.

Easy and relaxed look- site that tries to sell you something looks busy and filled with images.

Opinions presented in general manner no "push or sale"- information given to you in easy read form and does not sale or flooded with popups.

Information displayed for your convenience- the charts, the calculators or the tables free and convenient for reader at any time.

Often good sources presented by professionals- see if the author is professional and presents balanced view or opinion. Many articles are written by smart people and may not be accurate.

Association of the web site can tell you much about purpose of the site.

On of the good sources for your finance is existing website on Google search is dedicated to family and family finances is

Comprehensive menu and charts can tell you of daily market performance. Information about stock performance will keep you posted if your company is looser or gainer and advises on investing will help you to understand basics of investing. There are many other categories such as tax advises insurance information and mutual fund basics.

Forum is open for anyone to post their questions or start new discussion.

Just remember there is so much valuable information on and other websites for you. For your own benefit it is worth to do little research and make your important decision.

Saturday, March 03, 2007

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?

Customer desires to pre-pay for a year

Domain Name Registration for 5 old age or more

Orders using free electronic mail computer computer address suppliers like Hotmail, Yahoo, etc.

Usage of multiple cards to finish order.

International address. Abs can not validate those international addresses.

Multiple purchases in a short clip period.

The client and charge computer computer addresses are different.

AMEX, VISA, and MasterCard implemented a security characteristic known as “CVV2” and “CVC2”. These are the three-digit or four-digit numbers printed on the dorsum side or presence side (depending on card company) of the card (signature panel) to the far right. The three/four-digit codification assists to validate that the cardholder have the card in his possession. You can include the codification in your transaction processing and need to have a lucifer to successfully complete the transaction. If you are using a shopping cart for your hosting sign-up process, do certain that it is capable of collecting and processing these numbers. IMPORTANT: The ToS of the credit companies state that you are not allowed to hive away these numbers.

Use Address Confirmation Service (AVS) on all United States transactions to verify the charge information provided in the order with what is on data file with the card issuing bank. As a bare minimum, the nothing codification should successfully fit before the transaction is approved and you manus out the account information. You should reserve the response information for some clip in lawsuit of a chargeback.

The possible Abs messages are:

Y – Exact lucifer on street computer computer address and 5 or 9 figure nothing code.

A – Address matches, nothing codification makes not

Z – nothing codification matches, address makes not

N – No match.

U – Address information is unavailable or Issuer makes not back up AVS. These transactions are only applicable for Visa and the merchant isn't responsible for chargeback liability.

R – Issuer mandate system is unavailable, rehear later

E – Mistake in computer address information – not able to finish check.

G – non-US Issuer not participating in Abs - Visa only. The mistake messages will change from one supplier to the next. Contact your supplier for more than information.

S – Address information is unavailable or Issuer makes not back up Abs - MasterCard only.

The most of import warning mark of fraudulent transaction are international orders. It is very sad to be so generic with this statement but the percentage of having a fraudulent orders travels up immediately if the order come ups from a non-US location. Be aware of cities or states with high rates of fraudulent transactions. Malaysia, Indonesia, and most states of the former Soviet Union be given to be beginning of many fraudulent orders.

The most effectual manner to assist eliminate fraud or chargeback's is to simply name the customer. A confirmation over the phone is most definitely advised for any large transactions. If you process a fraudulent transaction, not only make you lose the funds, but the product/service arsenic well. A phone - even if it is international volition save you a batch of fuss in the long run.

What if you happen a transaction to be suspicious? Contact your mandate centre and allow them cognize you are concerned about the transaction. They will look at the transaction and may give you advice. You should also name the client to bespeak further information (copy of drivers licence or Pass as an example). Check the information science computer address of the sign-up and see where it is globally. Bashes it fits the clients computer address at least by country? Send a confirmation electronic mail to the client verifying their order.

It may be a good policy to only accept orders with indistinguishable Customer and charge addresses.

Maybe you desire to size up international orders as your protection against these consumers is very minimum and not accepting them could be a wise pick for your web hosting business.

Placing fraudulent notices, buttons and images on your web land site and order word forms will assist discourage any individual trying to put a fraudulent order. Brand certain that the client will selenium upfront that you are recoding the information science computer address and that you will advise the law enforcement agencies if needed. It might not protect you in every lawsuit but eventually it will assist to cut down the number of fraudulent orders.

This article can be published by anyone as long as a unrecorded dorsum nexus to is provided.

Friday, March 02, 2007

Homeownership: A Way Through The Loan Amount Issue!

There are always credit limits that may restrict your ability to obtain the funds you need due to different reasons that may include bad credit, lack of collateral, income requirement, etc. However, if you are a homeowner and even if you don't use your property as collateral, you can bypass these limits at least for a fair amount.

That's why we say that homeownership is a way through the loan amount issue. Regardless of the fact of whether you'll use your property to guarantee the loan or not, the lender will still be able to offer you higher amounts than the amounts he is able to offer tenants and non-homeowners. And this is mainly due to an important risk reduction.

Loan Amount and Loan Types

Loan amount restrictions apply differently to the varied loan types. For secured loans, the loan amount limit will depend on the available equity and market price of the property that is being used as collateral for the loan. This is due to the fact that the property is actually guaranteeing repayment for the loan up to the loan amount.

However, the loan amount limit on secured loans will also depend on the credit score and history of the applicant and his available income. Higher loan amounts represent a higher risk for the lender and thus, only if credit and income requirements are met with ease, the lender will define a high loan amount limit for any particular lender.

Loan Amount And Loan Terms

The repayment schedule and the interest rate will also affect the loan amount limit. But these variables will act differently according to the credit history of the applicant. Longer repayment programs tend to reduce the loan installments and thus make them more affordable so the risk of default is reduced.

The interest rate compensates the lender for the risk he is taking which in turn helps the lender to offer higher amounts. Yet, higher rates and higher amounts imply higher payments and more risk of default. Thus, only if income is good enough for affording such high monthly payments, high loan amounts will be granted.

Homeownership And Loan Amount

Homeownership, whether the property is used as collateral for the loan or not, reduces the risk involved for the lender in the financial product and thus provides the lender with the ability to offer more advantageous loan terms. This includes lower interest rates, longer repayment programs, lower monthly payments but most importantly, higher loan amounts.

If used as collateral the property directly guarantees repayment of the loan and thus, homeownership acts in a simple and straightforward way. However, on unsecured loans the results are similar. Though the property is not used as collateral it still guarantees repayment along with all the applicant's assets and thus, also reduces the risk of the transaction making it possible to offer higher loan amounts. As you can see, homeownership is beneficial both for the lender and the borrower in different ways.

Thursday, March 01, 2007

This Little Known Secret Will Get You Out of The Vicious Pay Day Loan Cycle

Many People with bad or no credit use Pay Day loans to get through a short cash flow crisis. These Pay Day loans often charge 10 to 20% per week. People to People Lending a New Company on the internet can help you get out of the Pay Day Loan Merry Go Round.

People to people lending is auction like online loan service. It was created by the founder of E-loan. The Concept is very simple it is people helping people. It enables borrowers and lenders to free themselves from the Mercy of the Bank. Why place your money in the bank at 5% or less only to have them loan them to credit card users at 20% or more.
People to People lending gives you the ability to lend the money directly to those who need it at rates of return from 7% to 25% or more based on the Credit standing of the Borrower.

As a Borrower you can request any amount you want from $1,000 to $25,000. You also pick the interest rate you are willing to pay. They do have interest guidelines they recommend that you use based on the loan amount and Credit Rating. A person with an E-Rating which is one of the lowest ratings wanting to borrow the minimum of $1,000 should expect to pay between 20 and 25% interest. This is for a fully amortized 3 year loan with no prepayment penalty. You would actually pay less then $40 a month for a Thousand Dollar Loan at 25%.

If you currently have a balance with a payday loan company why not borrow $1,000 at 25% at and pay off your pay day loan. Take whatever money is left and pay down your People to People loan and then continue to pay $40 a Month until your loan is paid.