Top 5 reasons to avoid car loans

In the olden days, owning a car was considered as a part of luxury. But the modern circumstances have gone far from that stage. Today, car has become an inevitable part of a lifestyle and most families now have 2 or more cars. The car can be a necessity in the modern condition but the cost for it is not affordable for everyone. Majority of the car loan companies have come up with easy installment car loans as a possible method to arrange the money for car purchase. However, the car loans are not appreciated to be beneficial at all times.

The primary reason behind the discontent of the experts about car loans is the risk involved in it. Car loans are available in secured and unsecured options. However in most cases car loans are provided on the collateral security of the car itself. In most cases the collateral value will retains its value more or less during the whole loan repayment period. But, in case of car loans the collateral value will be depreciating at higher rates and it won’t be viable to support the loan during the whole loan process. The car loan lenders are forced to compensate their risk by including stringent conditions. This will reflect a practical difficulty, ultimately on the borrowers. And, in effect the car loans will not be advantageous.

Now many options are available for car financing. In most cases the dealers of the car itself will offer the financing of the car loan. Many banks and other private banks are also present in the market. Even then, the rates of car loan are higher than any other secured loans. In several cases unsecured loans are available as car loans. In the case of unsecured loans, the interest rates will be higher than any such loans. If the person has credit liability, the burden of the interest rates will increase in the car loans.

The repayment term of the car loan will also be a problem, as it will be short due to the risk involved in the loan. As the value of car decreases with the time, the lenders will be interested to limit the repayment schedule to as minimum as possible. The high interest and limited repayment track will in effect increases the monthly repayment amount.

In the present scenario, we are forced to change the car, according to the latest trends in the car market. The modern motor vehicle industry has come up with many attractive models that will gain the attention of people. The selling or exchanging of the car will become a problem, if you have a big balance in the car loan repayment. You will not be able to find appropriate deals as most of the people will not feel good to take up the loan associated with it.

Car loan refinancing is a popular option to reduce the hassles involved in car loans. But the efficacy of the car loan refinancing is also a question. Any faults in the repayment will also affect your credit score. In brief, car loans are potential dangers, which can imbalance your financial stability. It will be better to arrange the finance from any other source. And if car loan is inevitable, analyze the terms of the car loans carefully, before stepping in.

Dental insurance plan a few things to remember

Regular dental check up is the foremost advice that any dental health care professional offers. But only few of us act on that expert advice. Simply because most of us are lazy. Besides, we do not want to spend money on something for which there is apparently no urgent need. Laziness is the state of mind and has to be taken care of by us on our own, but so far as expenses are concerned, dental insurance plans take much of the load off one's pocket. However, while going for a dental insurance plan, there are a few things you must ensure.

1.Make sure that the dental insurance plan allows you to choose your own dentist. If the dentist you want for yourself and your family is not among those that the plan approves, the expenses incurred by visiting such dentist may not be borne by the insurance providers. So, make sure that you are not put to any such irritating inconvenience. Pay a little more, if you have to, to be attended by your preferred dentist. It's well worth it.

2.Consider the restrictions, if any, imposed by the plan on your choosing the treatment options. There are a few insurance plans that tend to cap the number of treatments allowed while a few others would limit the expendable amount. Those who have a family history of poor dental health must consider this aspect very carefully and ensure that the plan they choose imposes the least number of restrictions on their choice of treatment.

3.Know what your plan covers exactly and what stands outside its purview. A good dental insurance plan allows a cleaning treatment every six months. X-ray and fluoride treatments are inclusive, as they cost little or nothing at all. So far as the major treatment procedures are concerned, you are required by many plans to pay 50 percent of the expenses. If your family has had good dental health in the past, you may ask for lesser coverage in this area.

4.Who all in your family would be covered under the plan is also an important issue. Mostly, dental insurance plans cover the spouse and also the dependent children right from the birth up to 18 years of age.

These are a few things that you must consider while going for an insurance plan so that all of your dental worries are a thing of past.

Debt relief - some basic strategies to getting out of debt

What is Bad Debt

Bad debt is paying interest on something that has no lasting value, pure and simple. For example, using a credit card to purchase a television and planning to pay it off in four or five months would be bad debt.

In the same way, purchasing a house with a thirty year loan is also bad debt. If you look at a loan chart you will see that it takes years (over fifteen) before you are paying more on the principle than on the interest. So unless you stay in the home for a very long time you will owe almost as much on the loan when you sell the house as when you bought it.

It’s for that reason that it is actually smarter to rent until you have a large amount of the home’s price saved up, and then get a ten or fifteen year loan. Renting a home or apartment for $600 or $800 a month (rental amounts vary according the area, of course) will allow you to save money a lot faster than having a $1,000 a month mortgage plus all the other expenses that come with owning a house (higher utilities, yard expense, repair bills, property tax, etc.).

What if You Have Bad Credit?

If you have bad credit and want to get a credit card, it’s a good idea to limit the number of inquiries to your credit report to help keep your score from dipping even further. To do that you need to research the credit cards and decide which cards you’ll have the best chance of obtaining before you fill out any applications.

Typically, cards for bad credit will carry much higher interest rates than the prime credit cards available on the market - but there are benefits associated with having a credit card despite the higher interest rates. But be careful of how much you put on the card each month and pay the card off when the bill comes.

Debt Reduction

Debt reduction credit card consolidation is offered by money lending firms who bail out the people neck-deep in debts. What makes debt consolidation appealing is that various companies offer a combination of several debt reduction and credit repairing plans which aim to completely obliterate a person’s existing debt.

Secured Debt Consolidation Loans

Debt consolidation loans may be classified into secured and unsecured loans. Secured loans are loans such as home equity loans. Secured loans are easier to get than other forms of borrowing because the loan is secured by tangible property.

Home equity loans are collateral loans, in which the loan is secured by a home's equity. Although secured debt consolidation loans offer many benefits like large loan amount, longer repayment period and above all the low rate of interest, it still has one big disadvantage attached to it. That disadvantage is the collateral that could be taken from you if you fail to repay the loan. For instance, several missed payments could result in foreclosure of your home.

Unsecured Debt Consolidation Loans

There is no fear of the collateral being lost through non-repayment of the unsecured debt consolidation loan. Unsecured credit card debt consolidation requires a borrower to furnish proof of his sound income and financial standing, if any. The interest rates are usually higher than for a secured debt consolidation loan.

What to do if You Find Yourself Deep in Bad Debt

First, stop spending and reduce your monthly bills as much as possible. Do not buy any more items that are not absolutely necessary. Instead of purchasing $150 shoes for yourself or your child, purchase $15 shoes.

Second, start paying off the smallest debt first. Then, as you pay off each credit card or loan, use that money that had been going for that debt to start paying off the next smallest debt.

For example, if you have an $8,000 credit card debt and a $2,000 credit card debt, pay off the $2,000 debt first. Then use the money that had been going toward the $2,000 debt to pay off the $8,000 debt.

Of course, while you are putting every extra cent you have toward that lowest debt, you are paying the minimum amount due on the other debts. If your income is so low that you cannot afford to pay the minimum amounts on the debts, you definitely need some professional help from a trustworthy debt counselor.

Depending on the amount of debt it might take a number of years to pay every outstanding debt. But paying off the smallest debt first and then going to the next biggest works better than trying to pay off the largest debt first, or trying to pay them all off at the same time. So get started. The sooner you start the sooner you get out of debt.

Mortgage terminology explained

When you first apply for a mortgage, you may feel you’ve stepped into a different culture with a language all its own. More than likely, your mortgage professional is throwing many new terms and expressions your way. It’s the responsibility of that same mortgage professional to make sure you understand everything that’s being explained to you, so you should never hesitate to ask them to stop and clarify. However, if you can approach your application meeting armed with some familiarity with mortgage terms, everyone can be more comfortable from the very beginning. Familiarize yourself with the following and you’ll be a step ahead of the average first-time borrower.

HUD: HUD stands for Housing and Urban Development, and refers to the US Department of Housing and Urban Development Settlement Statement documents pertaining to the house being financed. When your loan officer talks about having you sign the HUD, they are referring to that settlement statement. The “HUD” will detail all payoff information, including any fees associated with your mortgage loan.

LTV and CLTV: LTV and CLTV stand for Loan to Value and Cumulative Loan to Value (or Combined Loan to Value). LTV refers to the percentage of the home’s value that is being financed. Thus an $80,000 loan for a $100,000 home constitutes 80% LTV. Higher LTV loans may carry higher interest rates and mortgage insurance than lower LTV loans. CLTV refers to the combined amount being financed between two loans for the same property. If the $100,000 home mentioned above has a first mortgage of $80,000 and a second mortgage of $20,000, the LTVs of those loans would be 80% and 20% respectively for a CLTV of 100%.

Designation 80/20: Designation 80/20 in the same line of thought, refers to the technique of obtaining 100% financing for a borrower without using a program that offers 100% in one loan. 80/20 refers to the percentage of the home that will be financed with each loan, 80% with the first mortgage and 20% with the second mortgage. 80/15s, 80/10s, and so on are also available and are options you should consider under the advisement of your loan officer or financial planner.

Stips: Stips are stipulations, and they are the requirements handed down by your lender and its underwriting department in order for your mortgage to be cleared to close. Common stips are copies of pay stubs, bank statements, and verifications of rent and employment.

VOR and VOE: VOR and VOE stand for Verification of Rent and Verification of Employment. Both may be required by your lender in order for your loan to be approved. Not all lenders and not all loans require either one of these.

HELOC: HELOC, while not something you will probably hear during your first mortgage experience, is one of the most common mortgage acronyms. It refers to a Home Equity Line of Credit, which is one option borrowers have for taking equity out of their homes. With a HELOC, borrowers can draw up to the full amount of the loan as many times as they choose, paying down all or part of the amount and drawing it back out again. In this way, a HELOC is a loan similar to a credit card, except that the interest paid on a HELOC is tax-deductible.

This is not a comprehensive list of the new terminology you may encounter when securing a mortgage, but familiarity with these terms will help you understand what your loan officer or financial planner is talking about when it comes time to finance a home.

How to broker a consolidation service debt settlement

For anyone who is in serious debt, the first thing he should be doing is to hire a debt consolidation agency to help him get the best possible debt settlement. You'll receive a large lump sum of money through a debt settlement, which you can then use to pay off your debts and at the same time restore your credit rating.

That certainly sounds very easy, but exactly how does one go about consolidating your debt? The first thing to do would be to ask your creditor to either eliminate or lower the interest brought forward.

What often happens is that debtors feel guilty for falling behind on their payments and hence don't approach the lenders for help. The result of this is that creditors increase the monthly-equated payments, most of which results from raised interest rates. So, when the debtor is unable to pay off the raised interest rate, he is slapped with a penalty.

The actual amount to be paid may be insignificant; however, when added to his already ballooning debt, those unnecessarily added extra dollars will significantly increase his mental burden.

If you or anybody you know finds yourself in the position, you must as a matter of urgency take steps to eliminate your interest and penalty. As soon as you do this, the creditor will respond and give you the benefit of the doubt, as he no longer risks losing his capital.

The next thing to do is consolidating all your credit card accounts by turning them into a single debt. Then calculate the average interest added to one credit card account and apply this formula to the combined debt in order to settle the optimum (lowest interest rate) amount only, and hence decreasing the average interest rate.

Things can get even better and you can even repair your credit history if you settle with all your creditors at once. As soon as the amount you got is distributed to all your creditors, you'll begin to recover as each creditor clears your debt. All participating creditors will help themselves and you as you'll restore your credit and they'll recover the capital amount they almost lost.

Cheap car insurance for teens some tips and advice

One of the most important tips anyone can offer a teen driver about obtaining, and keeping, cheap car insurance, is the tip of driving safely and responsibly. This advice does not mean just buckling up and driving the speed limit. Driving safely and responsibly goes beyond those basics – especially for teen drivers.

Below are some tips and advice for teens to drive safely and responsibly.

Obey the law. Obeying the law means buckling your safety belt (wearing a safety belt is a legal requirement in most states); driving the speed limit (speed limits change in different parts of town, especially in school and work zones); knowing, and respecting, what the colors of traffic lights mean; not driving under the influence of drugs, alcohol, or any other controlled substance; placing at least the length of one vehicle between you and the car in front of you; always signaling your next move to the vehicles surrounding you; and driving only during the times drivers your age are legally allowed to drive.

Respect your surroundings. Respecting your surroundings means driving in accordance with everything around you. Drive slower than the speed limit when weather elements such as rain and snow require it. Keep watch of pedestrians, especially children who may be playing close to the road. Pay attention to all vehicles around you, especially in high traffic areas.

Avoid unnecessary distractions. Unnecessary distractions include things such as putting on make up, eating, chatting on your cell phone, blasting the radio, and cramming too many friends into your vehicle. Many states have laws regulating how many passengers teen drivers are allowed to have. Know, and follow, those laws. When in doubt, never allow more passengers than your vehicle has safety belts.

Car insurance companies already view teen drivers as high risk. By driving safely and responsibly, teen drivers can keep traffic violations and accidents to a minimum, thus helping them maintain cheap car insurance.

12 tips on how not to get a loan

Here are a few tips on how _not_ to get a loan, and underneath each one, the smart thing to do instead.

1. Ignore borrowing costs.

Examples of these are insurance schemes and prepayment penalties. Make sure you understand and are willing to pay them all. Understand your agreement before you sign, including terms and conditions.

A loan may become too expensive, with variable interest rates and fees. The total cost of your loan will depend on the annualised percentage rate (APR). The annualised percentage rate takes into account the interest amount, and all other charges.

2. Pick the first lender you think of.

Deals vary enormously, from loansharks to credit unions. Consider fully mutual building societies and credit unions, then find companies that are dedicated to loans. The first were set up to help members, and the latter's earnings come exclusively from lending money. They can offer better deals.

3. Communicate by telephone only, and don't record the name of who you spoke to.

Make sure you get the full name of the person with whom you speak, if you call your loan company. Big offices are impersonal; your loan officer could leave at any time. Write letters to keep a record of important points.

4. Take on a loan thinking "Well, I can always go bankrupt".

This is stupid. You will find it very hard to get credit of any kind in the future, when you need it badly.

5. Avoid researching the lender.

Type the name of the lender into a search engine. See if there are any negative postings about them.

6. Who cares what it'll cost you!

Think about your budget; how much can you afford each month? Then leave a portion of your monthly income aside as coverage for emergencies and unexpected bills.

7. Take your time paying it off.

No matter how cheap a loan may be, pay it off as quickly as you can to avoid interest accumulating. Try to get a loan that allows early payments; the quicker you pay back, the less interest you pay. If you extend the duration of the loan, you will have to pay much more in interest.

8. Make lots of enquiries in a short space of time.

Any more than four credit checks in one month for a personal loan looks suspect, and may affect your credit rating. When shopping for a quote, ask them if they're going to check your credit-rating, to be on the safe side. They don't need to, to give you a rough estimate.

9. Have lots of credit available to you, then ask for more.

To ensure you get the best terms, keep your credit-line as small as possible. Loan officers tend to count the total line of credit available as a liability.

10. Default or make late payments on small debts.

Not paying off that hire-purchase agreement years ago will come back to haunt you. Pay off small debts before they're due. Cancel credit cards you are not using. IMPORTANT: Keep your oldest card, for the credit history attached to it. Otherwise, consider their interest rates and fees, when deciding which ones to hold on to.

11. Sign papers without reading them.

You're anxious. You want the money _now_. Cue major upset later when you realise what's in the small print.

12. Keep quiet about repayment problems.

If you have problems with repayment, write to your lender as soon as possible. The earlier you tell them, the more sympathetic they'll be. You can then make arrangements for under-repayments until you get back on your feet.

The big home ownership problem - what s next

The real estate world has known for a good while, yet some have been refusing to read what it says. Many Americans are getting deeper into debt. Part of this problem likely comes from the cost of owning a house. For a increasing number of homeowners, housing debt is forcing a tough situation into a dangerous one; creating a “foreclosure crisis” that will likely last many years more.

Several months ago, current numbers released by the Government are showing an alarming growth in the rate of foreclosures. In some areas, of all home owners who were extended sub-prime loans, the rate of default is as high as 14-20% when 4-6% is considered “healthy”.

This data has been all over the news — the sub-prime market has been in upheaval. Sub-prime loan officers are usually experienced in extending financing to borrowers with credit problems, unable to verify income, employment or other factors that make them a poor fit for traditional financing. In the past few months, many major players in the sub-prime market have sought additional investors or in some cases simply closed their doors and gone out of business. Just as their clients were unable to afford the escalating costs of living, many sub-prime lenders found it impossible to absorb the rate of default we are now seeing.

The major issue doesn’t stop with the sub-prime market. Even traditional lenders are increasing requirements and placing more scrutiny on the loan approval process. This begs the questions of how did this problem with foreclosures ever begin in the first place?

A fair amount of the responsibility can be laid at the feet of the homeowners themselves. In this age of "big is best" many Americans see a big home as an indicator of success. This pushes many buyers into trying to own a bigger, more expensive home without enough thought to being able to afford one. Often buyers push the levels of affordability and end up in a difficult situation or worse.

Blame can also be attributed to some financial institutions. Who is better informed as to how much house debt a borrower can afford? The current debt-to-income ratios are either broken, or the types of loans that lenders are offering are poor choices. Loans like 28/2 and 27/3 loans with fixed teaser rates that adjust after 2 or 3 years with a balloon or margin are just a few of the loans that have presented problems for borrowers.

Of course the ultimate result will be better qualified and better educated homeowners but did things really have to go so far? We've seen foreclosre problems hit most of the large regions we work including St. Charles real estate, Batavia real estate, Geneva real estate and Yorkville real estate. Frankly, I sometimes think they did. Lately it seems like it takes a good deal of shock to get some things back on track. In the mean time, if you are thinking of purchasing real estate in the next few years, it’s important that you start speaking with your local REALTOR or financial professional and make sure your finances and credit scores are in order before you go forward with applying for a loan.

Information investment planning retirement-achieve your retirement goals

So you’re looking for information on investment for planning your retirement? The truth is, investing is the most important vehicle to help skyrocket you to achieving your financial goals. Without the power of compounding interest, you simply won’t have enough money for your retirement years.

The sad reality is that most people reach their retirement years without nearly enough money to support them and their lifestyle. Therefore, they either have to severely scale back their plans in their later years, or continue working just to make enough to survive.

All of this could have been easily avoided with some simple retirement and investment planning. So which investment vehicles are best to get you to your retirement goals? There really is no right or wrong answer to this question.

The truth is, many investors have made a fortune in many different fields, whether it be real sate investing, stock market, etc. So which is the right one for you? The best way is to pick one you are interested in, and focus on that.

However, the most important part is to pick one avenue of investment and focus on that. Don’t dabble in many fields; focus in on one, and stay with that.

For instance, if you decide to become a real estate investor, don’t also invest some in penny stocks, futures, foreign currency exchange, etc. It will simply eat away at your time you could be spending finding more real estate deals.

Now, here’s by far the most important component no matter which retirement planning investment vehicle you decide to go worth; find someone who’s already successful in that field, and model their success. For any result you want to achieve in the world, there are already people who’ve successfully done it.

Therefore, you could either stumble around, make a million mistakes until you learn how to be successful (like most do) or cut years off your learning curve by learning from others and modeling their success. Also, you might want to consider an investment in a financial retirement planning services company.

No, don’t completely surrender your financial future to these companies; however, these experienced companies can certainly give you some advice that will be helpful in helping you map out where you want to be in your retirement years and how to get there. Hopefully this information on investment for planning your retirement will help you achieve your goals, no matter how lofty they may be. Remember, don’t limit yourself in this process; think big, believe you can have it, and it will be yours.

Health insurance for the recent college graduate

As you graduate college and head into the great, big, scary world, there are probably a lot of things on your mind. First and foremost is finding a good job, then finding a place to live, and then maybe figuring out how to pay back those student loans. One thing that might not cross your mind is health insurance. All of your life, you’ve most likely been a dependent on your parents’ coverage, but that ship is about to sail—if it hasn’t already.

We know what you’re thinking, “Why do I need health insurance? I’m young, I’m healthy, and doctor visits are few and far between. So why pay for something I’ll never use?” Hey, we understand where you’re coming from. But accidents and illnesses happen without warning, even to the strapping young adults such as you. Sure, health insurance is expensive, but not having it will cost you dearly.

First things to know

Let’s get one thing straight, health care in the United States is a nightmare, few will argue that. There are thousands of options when it comes to receiving care and paying for it, some of them good, some of them not so much. When it comes to choosing an insurance policy that’s right for you, confusion abounds. So let’s learn a little more about your options.

There are two essential categories of health insurance: managed care and indemnity plans. Though you’ll pay more for indemnity coverage, it offers much more flexibility than does a managed care plan. Through indemnity coverage, you’ll have your choice of doctor, lab, hospital or specialty clinic. When you seek medical care, you’ll have to pay an out of pocket expense—called a deductible—before your coverage will kick in. Deductibles range from a few hundred dollars up to $1,000 or more, depending on your policy. Also, indemnity plans require a co-payment on medical care; meaning you’ll be responsible for a percentage of the treatment costs along with your deductible. Generally, indemnity plans pay only for accidents or illness; they usually don’t cover preventative care.

Managed care is the complete opposite of indemnity coverage. Deductibles are usually smaller, co-payments are lower, and preventative care is usually covered. Your options, however, are limited. Through a managed care plan, you can only choose between health care providers who are contracted by your health maintenance organization. If you go elsewhere, you pay—the full amount. Since that’s a pretty rough deal, many managed care plans are offering hybrid options that include many of the desirable characteristics of an indemnity plan.

Which way to go

If you find a job that offers health insurance and you’re single, take it. It may not be perfect, but it beats anything you can find on your own. When you sign up through your employer, you’ll probably be confronted with many options. Take a good, long look at them and ask for help from a human resources representative if need be, but make sure you choose the plan that’s right for you. Chances are—if you’re young and healthy — you’ll want a plan with a low premium and higher deductible. Look for a plan that minimizes your out-of-pocket expenses. When it comes to choosing between and indemnity plan or a managed care plan, you may or may not have a choice depending on your employer. Both offer advantages and disadvantages, so make sure to crunch the numbers before committing to one or the other.

Make yourself a deal

Though health insurance is a costly part of our lives, there are ways to save. If you’re self-employed, shop around before you commit to a plan. If you’re under 50 and in good health, insurance companies will want your business, and cut rates are to be had. Also, take advantage of breaks from Uncle Sam. The self-employed can write off up to 45 percent of their insurance premiums. Some employers offer flexible spending accounts, where you can pay for premiums and costs not covered by insurance with cash that isn’t subject to taxes.

If you’re married and your spouse also can get coverage from their employer, weigh your options carefully. It might benefit you financially and coverage-wise if you measure the pros and cons of separate coverage, double coverage, or one of you opting out of your work’s plan and enrolling in the other’s.

Finally, if you’ve been healthy and believe you can get by with minimum health coverage, look into purchasing “catastrophic coverage”. This indemnity policy offers extremely low premiums, but deductibles can be very high—up to $2,500. Coverage is extremely limited to “catastrophic” events, which you’ll need to learn all about.

What is a merchant account

Merchant accounts are bank accounts that make it possible for a business to accept a credit card and/or a debit card as payment. While the accounts are offered through ordinary banks, they are not the same as the checking or savings account you have with your local bank. A merchant account is more like a contract between the bank providing the account and the business owner, with rules about how products or services are sold and paid for.

There are two types of merchant accounts a business owner can apply for. One is called an "Over the Counter" (OTC) merchant account, and the other a "Money-Order/ Telephone-Order" (MOTO) merchant account. The over the counter account is what a typical retail merchant has, and the fees for transactions are lower than the MOTO merchant account fees because in a retail establishment, the credit cards are physically swiped through a machine to make the transaction, while the Money-Order/Telephone Order merchant accounts charge higher fees due to the need to take two steps to process a card rather than just one and a higher risk of fraud.

An Internet based business will typically require a Money Order/Telephone Order merchant account. The customer enters all of their credit card information into a form on a website, where the data is then sent out for verification and the money is subtracted out of the cardholder's limit. In some cases the card is not actually charged at this stage, however. The money is placed in a holding account, and when the product ships out the card is charged for the purchase price.

Many people are lead to believe that it is hard to get accepted for a merchant account, particularly for a newly established business. This is not the case however, with many merchant account providers offering as high as 98% acceptance rates of applicants.

It's also common to believe that having the ability to accept credit card payments is too expensive for the average small business owner. With some banks, it may be too expensive as they may charge you an annual fee in addition to per transaction fees - but there are numerous providers that only charge you a small percentage of the sale amount when you process a credit card - an average of just 2-3% per transaction is paid to the merchant account provider. These merchant account providers are ideal for small business owners and online businesses that may only need to process a handful of cards each week.

The success of an ecommerce business relies on the ability to accept credit cards. It has been found that websites that only accept payments through bank accounts or by mailing check or money order do not have sales as high as competitors in the same industry - people want to be able to shop using their credit cards in a secure environment online and not have to mail a check or wait for payment to clear before their items are shipped. It's also been found that the average consumer will spend more when they are able to shop using their credit cards. Another advantage of having a merchant account for the consumers, is that it gives them the opportunity to use their debit cards (with the MasterCard or Visa logo) to shop online or in retail establishments, and deduct the money from their checking accounts without having to pay interest or card fees, but with the convenience of paying with a card over cash or writing an actual check.

Mortgage rates - something better than shopping for rates

Is it possible? Something better than getting the best mortgage rates! Yes. I know it’s surprising and that it goes against what everyone says but it is true and…

I can prove it.

First let’s define what we mean by the “best rates” and the financial value that we can attach to shopping for the best rates. The best rate is the best mortgage rate available for you by any lender.

The advent of super mortgage brokers and the Internet has forced the mortgage industry to become very competitive. Each lender has his best rate and most of the time it’s within 0.06% of the rates of major banks. Shopping with a mortgage broker makes this easy.

The financial impact of getting a better rate of 0.06% on a 100,000$ mortgage is 1028$ over 25 years or 41.12$ per year. That is not what I call super savings!

Something better than the Best Rate

Dr. Milevsky at York University (Toronto, Canada) published a stunning report. He compared two mortgage strategies between 1950 and the year 2000 and found that:

• 88% of the time one strategy was better (money saved)

• the average savings was 22,000$ on a 100,000$ mortgage amortized over 15 years.

Now we’re talking. Saving 22,000$ in 15 years, that’s 1466.66$ per year. It’s not hard to see that choosing the right mortgage strategy is a LOT more important than simply shopping for a better rate.

The real conclusion of the study is not that one mortgage strategy is always better. It’s not! The lesson is that choosing a strategy is very important.

[Note: the conclusion of this study is applicable for Canadians and Americans. The interest rates during 1950 and 2000 are very similar and the different strategies are available in both countries.]

What should you do?

Selecting the best mortgage strategy is not as simple as calling around for the best rate. You need to:

• analyse your situation and your long term objectives

• analyse the current interest rates and where they are likely to go in the next 10 to 15 years.

• choose the best strategies based on that information

I suggest that you take the time to find a mortgage broker that does more than shop the mortgage rates for you, but a broker that will take the time to set up a plan to save you money over the entire life of your mortgage. Once you have found a good broker, ask him to present you with 3-4 strategies and his recommendations.

It could save you a lot of money.

Creating a budget

Many people do not consider the importance of a budget. They indulge in spending according to their earning and do not leave room for emergencies. This usually ends up in the incurring of debts and sometimes, personal bankruptcy. A budget helps to counter these consequences.

The essential calculations in a budget are income and expenditure. The purpose of a budget is to ensure that the expenses do not exceed the income and also provide for savings for the future.

A budget needs to be documented in the form of a chart or table. This needs to be easily comprehensible and provide a quick summing up of the relevant details. The chart needs to effectively reflect the different heads of expenditure. Suggested heads are housing and utilities, entertainment, health and beauty, transportation, communication and household. These can be further subdivided as follows:

Housing and utilities

- Mortgage payment or rent

- Insurance

- Taxes and electricity

- Natural gas

- Water and garbage pick up

Entertainment

- Cable television or satellite service

- Internet access

- Dining out

- Bars clubs

- Sporting events, parties, lessons and recitals

Health and Beauty

- Hair-cuts, perms etc.

- Make-up

- Medical, dental, vision, weight loss, diet products

- Nutritional supplements

Transportation

- Car payments, insurance

- Gas

- Routine maintenance, repairs

- Air travel

- Rental cars, public transportation

Communication

- Telephone

- Cellular phone

- Voice mail

Household

– Groceries

- Cleaning supplies

- Laundry, dry cleaning

- Home improvement

Projects, towels, linens

Others

- Credit card payments

- Other loan payments

- Child care, items for baby/elderly

- Allowances for children, book clubs, magazines, music, etc., fast food

- Investments, vacation, spending money, donations to church or charity

- Gifts (Christmas, birthdays, anniversary, etc.)

- Emergency fund

- Cigarettes.

If you have any other expenses that are not covered, you could add them to the list.

Next, try to reflect all expenses on a monthly calculation. For example, if you pay yearly taxes, calculate the monthly expense by dividing the yearly amount by twelve. Having done this, add up all the figures to arrive at the total monthly expense figure. Then subtract this amount from your take home salary amount. If you find the remainder in negative, you need to look for expenses where you ought to cut down. For example, if your take home salary is $1000 and your expenses total to $1150, you would need to trim down $150 each month, from the expenses.

If you need to cut down on your expenses, you would be the best judge to decide where to make the changes. However, it would be prudent to cut back on the extra subscription channels of the television. If you are smoker, cut down on smoking instead. Take home cooked lunch to office instead of eating fast food. Economize on power consumption by avoiding unnecessary use of the air conditioner and heating and make less use of the phone.

Creating a budget is absolutely necessary to manage your finances and is not dependent on the size of your income. It helps to prevent overspending and personal bankruptcy, allowing you keep track of your income and expenditure.

Fixed rate mortgages more popular than ever

The Council of Mortgage lenders recently reported that an amazing 71% of all mortages and remortgages in April 2006 were arranged on fixed rate terms, that’s 17% higher than the same period last year. The increasing attraction of fixed rate deals is a product of the attractive offers being made by lenders together with a desire by consumers to lock-in to the current low rates for as long as possible.

The balance shifted slightly towards new mortgages and away from remortgages, possibly a symptom of lenders making the benefits of remortgaging less attractive to existing borrowers – the recent increases in exit fees almost certainly a factor here. (That increase is currently under regulatory investigation by the way) First-time buyer mortgages grew in size slightly to an average of Ј106,400, that’s almost Ј12,000 higher than April last year. First buyers are now borrowing an average of 3.21 times their earnings, which is also slightly up on last month. The average mortgage payer now spends 16.2% of their income repaying their mortgage, slightly less than previously and probably caused, the Council says, by the increased take up of fixed rate deals.

There has also been a crop of new fixed rate mortgage deals where lenders are offering to fix rates for as long as 15 years. That sounds crazy until you work out that it indicates supreme confidence in the stability of the money markets lokking forward. Heartening information for all of us.

In my opinion all these mortgage factors are reaching worrying levels with people borrowing not only more and for longer, but are also committing to repayment figures that are higher proportions of their income than ever before. All this is driven by the spiralling increase in house prices over recent years and a general worry by some people that if they don't get on the housing market now, they never will.

Cheap car insurance in nj

Ideally, you could get the cheapest car insurance you want. In reality, there are actually steps you can take to get the cheap car insurance you want.

What exactly makes car insurance cheap?

Many factors are used to determine the price of your car insurance in NJ. Such factors include the number of years you’ve been driving; the age, model, and make of your car; your driving record; your location; the safety components and anti-theft devices on your car; and the car insurance company from which you purchase your car insurance policy.

Many times, drivers and vehicle owners can get cheap car insurance in NJ if they’re experienced drivers with minimal or zero incidents on their driving records. Those drivers and vehicle owners who have, or who install, additional safety features such as anti-lock brakes, automatic safety belts, and child proof locks usually get cheap car insurance rates, too.

If your driving record is less than perfect, now’s the time to begin working on it. Contact your motor vehicle department and ask about driving classes you may be able to take to lessen the points on your record. And, of course, practice safer driving to avoid obtaining more points.

I own a car, but don’t have a garage – will this affect my insurance rates in New Jersey?

Maybe. Maybe not. If you can rent garage space close to your home, that would definitely help your car insurance company see that you’re taking the necessary steps to protect your car. You should also consider using an anti-theft device, as well as parking your car in a well-lit area – even if it’s not a garage.

What does NJ have to say about getting cheap car insurance in NJ?

Lots. The New Jersey Department of Banking and Insurance dedicates and entire section of their Web site to insurance consumers – including car insurance consumers. Contact them or visit their Web site for more information.

Secured loans and secured lending - what is it all about

Secured loans are the most common forms of lending. Secured loans protect the lender from losing the money that they lend because they are protected by some asset or other collateral. In the case of a secured home loan, for example, the home itself is the collateral.

If the borrower does not pay the secured loan, the lender puts a lien on the property and the home can be returned to the ownership of the borrower if the secured loan is not paid in a timely manner.

Auto loans are often secured loans. If financed through the auto dealership, as in the case of the buy here, pay here used corner auto lot, the borrower who defaults gets her or his car towed back to that dealership and has nothing to show for the money paid for it so far.

For new cars the secured loans are generally made through the standard banking lenders, which really means the bank lends the money to you but gives the funds to pay for the vehicle to the dealer. If your secured loan defaults the bank repossesses the car and then sells it to recover the lost money.

Secured loans are the primary way - and quite often the best way - to receive a great deal of money quickly. If you are willing to use your home or other assets as collateral, that secured loan seems nearly risk free to that lender.

It is not only purchases of new items that are financed through secure loans, however. If you get a line of credit based on the equity in your home or a second mortgage, you are probably doing so for things like a college education, to start or expand your own business, to improve or add on to your home, or for an extended vacation.

These secured loans are given based on the equity you have in your home (its market value minus the outstanding balance on your original mortgage.) This is generally considered the most secure of loans in that your lack of timely payment could lose you the roof over your head.

People often take out secured debt consolidation loans, with their personal property or their home as collateral. These loans are generally to pay off some high interest bills such as credit cards, by replacing them with a lower interest debt consolidation loan.

This is usually a wise secured loan for the borrower, and a very low risk loan for the lender. Not only is the borrowers most prized possession in jeopardy if she or he defaults but she is borrowing for a solid and sensible reason - to save money.

Unsecured loans generally cost more because the risk is greater for the lender. The interest rates on unsecured loans such as higher education loans have high interest rates.

If you do not want to risk your home or other property as collateral and apply for an unsecured loan instead but are turned down you may very well still qualify for a secured loan. While you have to put up your home or other property as collateral to do so, the good news is that it is generally going to cost you less in the long run.

Business credit cards are on the rise

With the number of small and home businesses growing at such an incredible rate, it is no surprise that business credit cards are making more of a showing these days in the market place. It was not long ago that small business owners had to depend on small credit lines or business loans from banks to manage cash flow on a monthly basis, which could be tedious and costly. This meant spending more time doing paperwork for the bank, and less time managing the business.

The release of business credit cards has helped to alleviate these problems. About 65% of all small businesses are currently using business cards, and this number is only going to increase. Most major creditors now have a business credit card offering, and availability is increasing by the moment.

Business credit cards bring several powerful advantages to the table for the small business owner, including:

Cash Flow Management - The number one concern of almost every business owner is cash flow. A bad month can bring down an entire quarter is the business has no means to float itself through a rough time. Business credit cards can be a key element in making through a rough patch.

Credit Rating Increase - The credit rating of a business can mean more than just financing. Customers may not want to do business with a firm that has a poor credit history, and corporate growth will most certainly be delayed if not stopped entirely. Business credit cards used in a responsible way can help build the overall credit rating of the firm, as well as help open new avenues of financing down he road.

Spending Control – Giving employees the ability to make purchases for the company on the fly can help streamline day to day business. This of course can also open the door to inappropriate expenditures, or simply over spending on needed items. With a little management these problems can be easily overcome, and recording as well as reporting corporate spending will be all the better for it.

Business Taxes – For home based and small businesses credit cards offer the opportunity to consolidate all corporate spending. While a larger business would be hard pressed to do this, there is no reason every business expense incurred by a small business couldn't be placed on a credit card. This means all corporate spending is managed through one sources, and when tax time comes around it is a simple matter to record.

Rewards Programs – Using a business credit card to manage all corporate spending is a good way to earn bonus packages from rewards cards. Air miles and cash back incentive programs really add up if you are routing your business spending through one card.

Business credit cards are an indirect way to help solidify your firm in the mind of your client. Take them to lunch and pay with the corporate card. This shows a certain level of stability and depth to a possibly new firm, and also helps to increase your credibility.

From cash flow to taxes, to a greater level of spending control, business credit cards provide a valuable service to any size firm. As with all credit cards, care must be taking when managing their usage. For all the good they can do for a business, they can also cause problems when mishandled.

Mortgage payment protection cover should be bought from a standalone provider

Mortgage payment protection cover can work but it has to be given some very serious consideration as there are exclusions within a policy that could mean you wouldn’t be able to claim. And depending on where you purchase it, it can add thousands onto the cost of your mortgage if you choose wrongly.

When taken out correctly, mortgage payment protection cover could pay out a tax free income each and every month usually starting from your 31st day of being out of work and continuing for up to 12 months (with some providers, for up to 24 months) enabling you to met your mortgage repayments. Mortgage payment protection cover can be taken out to guard against coming out of work due to accident and sickness only, unemployment only or accident, sickness and unemployment together.

Some of the most common exclusions include being self-employed, retired, only in part time work and suffering from a pre-existing medical condition. Of course there are many others and they will vary from provider to provider so it is always essential that you read the small print and key facts of a policy before buying it.

When it comes to the premiums charged this varies too from provider to provider and the cheapest quotes can always be found with a standalone mortgage payment protection cover provider as opposed to the high street lender.

A standalone mortgage payment protection cover provider is usually more ethical than the high street lender and will ensure that you are given all the information needed to make sure you make the best choice when it comes to the product’s suitability. Mortgage payment protection cover can be a valuable product and it doesn’t have to cost a fortune, so shop around, read the small print and choose wisely and you shouldn’t go wrong.

Take advantage of home improvement loans and tips on home refinancing

Adding a three-car garage or stainless steel appliances and granite countertops in the kitchen may seem a bit self-indulgent. But remodeling, upgrading appliances, or adding on to your home can potentially add significant value and be a very wise investment. So you can enjoy the luxuries while you’re living in your home and benefit from them when you sell it by capturing a higher selling price or getting your home off the market much sooner.

Since you’re a homeowner, you can qualify for a secured home improvement loan that is tied to your house. The advantage of a secured loan is lower interest rates. But be wary – if you miss payments, your house is used as collateral! On the other hand, an unsecured loan is not tied to your house, but it carries higher interest rates.

While upgrading your home cannot guarantee a higher selling price in the future, certain types of home improvements do tend to have big payoffs. Experts believe there are certain standard features that buyers have come to expect, such as central heating or a garage. If your home lacks these now-standard features, it may be worth the investment to have these installed. You could see the value of your home take a big jump.

Tips on home refinancing

When it comes to mortgages, the littlest things can make a big difference in the amount you pay each month. A small change in interest rates could mean a big change to your pocketbook. Make sure you’re getting the best deal on your mortgage by comparing home loan options and getting quotes from several different lenders. You may find that home refinancing could save you a bundle of money each month.

The way it works is simple. Let’s say you have a fixed-rate mortgage. You know that your monthly payment stays the same, no matter what happens to interest rates. This is great when interest rates are higher than the rates you locked in when you secured the mortgage. But what happens if interest rates drop below the rate on your mortgage? Well, what happens is that you now have an opportunity to refinance your home and lock in those lower rates.

Or imagine you have an adjustable-rate mortgage. When interest rates go down, you’re feeling great, because your monthly payment decreases as well. But when interest rates go up, you’re not a happy homeowner, because your monthly payment also increases. You may find more peace of mind with a fixed-rate mortgage that guarantees your monthly payment will never vary. Or you may be able to find a more attractive adjustable-rate mortgage with better caps on interest rates or lower rates in general.

However, we all know there’s no such thing as a free lunch. Refinancing your home may include upfront costs, or there may be a prepayment penalty associated with your current mortgage. So when you’re considering home refinancing options, you need to factor in whether the long-term financial benefits of the refinancing will make up for whatever charges you have at the time of refinancing.

Loans until the next paycheck

In the world of today, payday loans are as common as instant coffee. If you are desperately in need of some cash before your paycheck comes in, it is quite respectable to look for help to a bank that provides payday loans. This is very different from the days when a borrower was generally looked down upon. Things are very different today. The reason is certainly the expansion of the world of personal finance, and the transformation in the attitudes of the public.

In the world of today, people look for instant gratification. It is not that people no longer try to save up for the bigger investments of life. However, thanks to the rise of credit cards and debit cards and loans of all kinds, we are all more keen to buy things outright. The feeling today is that repayment of loans is no longer a problem. The easy terms of the loan providers have resulted in this attitude to some extent. However, I would say that this is a manifestation of a change in the thought process of people in general. The change in attitude and the easy terms are both linked, each feeding off the other, and it really is quite a task to decide which one came first -- the old chicken and egg question.

One result of this new willingness to apply for and the easy terms on the loans available was the birth of payday loans. Now, the first time that I heard about payday loans, I did not think that it was any better than a gimmick. I felt that it was some kind of a scam to get people more and more entangled in debt, with the end result that they would never again get out of this debt web. After all, if you will only think about it, you will find that almost everyone you know is in the process of paying off either a car loan or a mortgage or both. Now, add a payday loan to the list, and you may be trapped in the net of indebtedness.

Of course, things are not all that bad. First of all, nobody is given a loan without the loan provider's first making sure that the person's credit score is good enough. Moreover, payday loans are really quite a boon to all of us. If you find yourself a little short of cash in the middle of the month but have to pay a major medical bill, they really are a godsend. Getting a payday loan is as easy as walking over to the bank and asking for one. More or less.