CREDIT TRAPS AND PAYDAY SNARES

Posted on June 13th, 2008 by Linda Jaison

When the GOP Congress passed and President Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, supporters hailed the measure as a victory for “personal responsibility.”

Why look to pay-day loan companies

Posted on June 13th, 2008 by Linda Jaison

As times are getting harder in the UK with the cost of living steadily on the increase individuals are finding they are living from hand to mouth. This is not a great position to be in especially in the event of an emergency that requires some extra cash.  Knowing that your car is due for its MOT and that funny rattling sound under the hood has gotten louder you may be having kittens wondering how you are going to pay for its repairs.

Not having access to a vehicle is simply not an option as you rely on it for all your daily tasks, so where can you turn to for the extra money. Many more individuals have been looking in the direction of pay day loans to help ease the financial strain.

Pay day loans have increased in popularity possibly because traditional lenders are refusing to offer credit as they themselves simply don’t have access to them. The unfortunate part of the pay day loans is not only the incredibly high percentage you pay for the privilege of borrowing, usually in the region of 25% of the amount but also the fact that it is usually for an extremely short period; namely 30 days or until your next pay day, hence the name.

While it may appear to be the only feasible option it may in fact cripple you further if for whatever reason your pay is short or something else comes up.

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Prepay Energy Customers Left With ‘Hefty Price To Pay’

Posted on March 15th, 2008 by Linda Jaison

Those Britons who are paying for their energy through a prepayment scheme are losing out on millions of pounds, according to findings by a price comparison website.

In a study carried out by moneysupermarket, it was revealed that the typical person meeting the cost of their utility bills via prepayment is paying out an average of 1,026 pounds 46 pence. However, by switching to pay by monthly direct debit, such a consumer would pay 853 pounds 96 pence. Overall, it claimed that prepaying Britons are missing out on total savings of 862.5 million pounds.

Due to difficulties with meeting the cost of household bills, it may also be possible that many consumers develop problems with other sources of financial constraint. Such areas could well include mortgage or rent costs, loans and store and credit cards.

Furthermore, it seems that those who choose to prepay for their gas and electricity with British Gas could be coming under most monetary pressures. Such consumers were indicated as paying out 1,143 pounds 59 pence, although by changing to direct debit costs would fall to 879 pounds 97 pence. Generating a total saving of 263 pounds 62 pence, this is the biggest amount of money among the six major energy providers. Npower customers were revealed to be able to be 221 pounds 17 pence better off by changing their method of payment. On the other hand, the smallest available saving is with EDF. However, even switching bill settlement methods here could save consumers just over 70 pounds.

Although Paul Schofield, head of utilities at the price comparison site, commended moves by chancellor Alistair Darling to increase spending on social tariffs, he stated that more could be done to help those at risk of fuel poverty. The moneysupermarket chief claimed that currently just 0.11 per cent of major energy firms’ turnover is going towards low-rate deals and helping poorer customers.

Mr Schofield said: “The government will also be working with [gas and electricity watchdog] Ofgem and energy providers to treat prepayment customers fairly. Customers can shave hundreds off their bill by changing payment methods. Ironically, those on prepayment meters have a hefty price to pay and will find their annual bill 172 pounds 50 pence higher than those who pay by monthly direct debit. With five million customers on pre-paid meters, people are missing out on 862.5 million pounds a year in savings. I call on Ofgem to put pressure on the energy providers to support vulnerable customers and reduce prices for pre-paid customers.”

The moneysupermarket official went on to claim that “help is at hand” for those Britons who find that they are developing problems with paying off energy bills. Mr Schofield recommended that consumers should get in touch with their utilities provider who may be able to offer assistance on the likes of winter fuel allowances and special social tariffs.

People worried about their capacity to pay for energy bills might also wish to consider taking out a UK loan. In obtaining a cheap personal loan it is possible that borrowers can quickly meet demands for payment on utilities and other areas of household spending. Indeed a quick loan could also be of assistance to those struggling with mobile phone costs. A recent study by the price comparison website indicated that on at least one occasion a fifth of mobile phone users have received a bill that is more costly than previously anticipated.

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Top Tips for Choosing a Good Cash Advance Lender

Posted on March 15th, 2008 by Linda Jaison

How to Choose a Good Cash Advance Lender

You have probably seen the commercials for cash advance loans, also called payday loans. They are all

over the television these days and you most likely haven’t given them a second thought until now. Your car needs work and you don’t get paid for a few more days, but you can’t get to work unless your car gets fixed. It’s a catch 22 scenario that happens every day all over the country to more people than you can imagine. Emergencies happen and you will see several people looking for ways to get themselves and their families through a financial crunch now and then. This is precisely why the cash advance industry has grown so much in recent years.

So you know you need a cash advance loan but you are not quite sure how to find the best payday loan company for you and your individual situation.

Here are a few questions you should ask yourself to help you in determine what to look for in a good cash advance lender so that you can make an informed decision with the least amount of trouble.

What is a Cash Advance Lender?

Cash advance lenders offer short term loans to people who find themselves in a financial bind between pay periods. They offer quick money that you can usually have in less than 24 hours. As you might expect, these lenders are in the business to make money, so payday loans aren’t free. It’s quite the contrary, in fact. Most payday loans will need to be repaid within two weeks. The specific term may vary from company to company, but two weeks is the average across the country.

What do I look for?

When looking for a cash advance lender there are several things to consider before you sign on the dotted line. First, you should find out how long the company has been in business. With the industry growing as quickly as it has, hundreds of companies have sprung up seemingly overnight. You should only consider doing business with a company that has been around long enough and has proven themselves stable. The best way to compare between different cash advance loan companies is by doing an Internet search. On the Internet you will find detailed information about specific payday loan companies as well as reviews from people who have done business with them in the past. If you cannot locate the information you need on the web, an alternative would be to contact your local branch of the Better Business Bureau. They maintain records on companies doing business in your area and individuals who have accolades or complaints will contact them to register those situations and seek a resolution when they feel they have been wronged.

Next you should look at the requirements that will be necessary to complete the process. What specific information does the cash advance company require as part of the application process? Most lenders will not require a great deal of information up front so long as you meet the following requirements:

-You are 18 years or over as you need to be at least 18 years of age to enter into a legal contract in the United States

-You have a checking account

-You can prove that you have a stable job earning a certain pre-determined minimum per month. The minimum monthly income may vary from company to company.

How much money can you get?

Most payday loans are for a relatively small amount, usually between $100 and $500, though some companies will offer a much higher amount. You should have a good idea of much money you really need before you look and don’t let them talk you into a loan for more than that amount.

What are the fees associated with the loan?

Payday loans are not cheap, and you can expect to pay high fees for using the services that these companies are offering. Ask what the fees are going to be before you commit to taking the loan. This can save you a painful surprise down the road.

When do you have to repay the loan?

Find out how long you have before the loan must be repaid. In most cases, a cash advance loan will come due in two weeks.

By asking the right questions up front, you will find it easier to decide which cash advance loan company is best for you.

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An Investor’s Short Guide to Approaching the REO Market

Posted on March 15th, 2008 by Linda Jaison

REO is short for “Real Estate Owned.” These are properties that have been foreclosed upon by a bank or other lender.

The REO department is staffed

by “asset managers.” Their job is to inspect the properties, make the necessary repairs and operate them until they’re sold.

You may be able to find great opportunities in this area if you’re willing to learn the ropes and deal with the often tough-minded REO departments of banks and other lenders. This article will give you the guidelines for doing just that. Understand the Attitude of Lenders Toward REO Properties Naturally, lenders don’t like to have REO properties on their books. Instead of an asset, they have a liability. Equally naturally, they want to get rid of these properties, but they’re not willing to do it at a loss, if at all possible.

Not only do you, as an investor, have to deal with this attitude, but you also have to deal with the fact that banks often don’t like to publicize the fact that they have REOs on their books. They have three reasons for this.

First, they don’t want federal regulators on their backs, questioning their business practices or solvency.

Second, they don’t want their depositors knowing about REOs. Depositors want security above all and if—rightly or wrongly—they see REOs as evidence of questionable practices, they may pull their money out. Banks want to protect their image.

Third, if lenders have a large inventory of REOs, they don’t want the market at large to know about it. If the information leaks out, prices could drop dramatically.

So, how do you find out about REOs? That’s our next topic. Present Yourself As a Professional to the REO Department A lender’s REO asset managers don’t want to deal with amateur investors, so you need to approach them as a knowledgeable professional.

First, call the lender and ask for the REO department. Once in contact, explain that you’re an independent, professional investor and are interested in buying REO properties and would like an appointment with a decision-maker.

Then, use that appointment to present your case and convince the decision-maker that you have the assets and experience of a committed professional. If you do your sales job right, then you can ask for a list of REO properties.

Note: Sometimes, REO departments handle the properties themselves; sometimes, they use a broker. So, be prepared to deal with both. Inspecting REO Properties As you might expect, many of these foreclosed properties aren’t in great condition. The former owners aren’t happy campers so they may not take care of the property or even damage it to vent their anger. So, you’ll definitely need to do due diligence and inspect any properties that you’re considering.

In some cases, lenders will do cosmetic repairs to a property since they know a more attractive home will bring a higher price. To counter this possibility, I recommend that you try to show up as soon as the property is acquired and offer to take it “as-is” to get a lower price. The Mechanics of Buying REO Properties There’s no secret to buying these properties; you buy them just as you would any property. First, you make an offer. The lender either accepts it, rejects it, or makes a counter-offer. In the case of a counter-offer, you negotiate.

In terms of payment, most lenders prefer cash because they want to be rid of these properties cleanly and quickly. If this is the case, you’ll need to go to a different lender to get your financing. Just don’t expect a great deal; that lender may want 10% or more down plus closing costs. However, some REO departments realize that they’ll get less from a cash offer so they may offer you financing. The advantage of this is that you may be able to pay a lower down payment, get easier terms, and also obtain some money for improvements. The disadvantage is that you’ll pay more in interest and fees than you would on a strictly-cash basis. Typical Problems to Expect As I said earlier, many of these properties are in bad condition and may not be worth the money, so inspect them carefully before you commit to a purchase.

Also, as I said before, these properties are sold “as-is.” This means there is no warranty of any kind. So, if you buy a property that later requires very expensive repairs, you’re stuck with that expense. The lesson—perform due diligence very carefully!

In the case of federally-chartered lenders, you may not get a disclosure statement (most states require these now). That means there’s the possibility you could get stuck with a property that has severe and expensive problems (e.g., lead paint, etc.).

Finally, if as a result of a home inspection, you find repairs that need to be done, don’t expect the lender to pay for them. As far as they’re concerned, it’s your problem to solve.

Key Point: When approaching an REO department, be a fully-prepared professional.

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How To Quickly Become Debt Free

Posted on March 15th, 2008 by Linda Jaison

My most favorite story is that of Arkad, The Richest Man in Babylon. In my opinion, the most fascinating paragraph in the story is: “Arkad was famous for

his wealth, kindness, and generosity. He gave graciously to charities, was generous with his family, and liberal with his own expenses. Arkad was rich and generous, and each year his wealth increased faster than he spent it.”

Be honest, wouldn’t you enjoy having all the good things in life and still have your investments grow faster than you could spend them?

What if you were to make this prospect a reality so that you can enjoy your wealth at the youngest age possible? Make a commitment now that you want to be like Arkad, wealthy while young.

DEBT LOWERS YOUR STANDARD of LIVING-each and every month! Every penny you pay in interest is less money that you have for you and your family! The average family pays almost $11,000 interest on credit per year, or $916 per month. Imagine what you could do with an extra $916 per month!

Everything you purchase delays your financial freedom, plus you have to find a place for it and clean it weekly. Avoid impulse buying or “malling.” Credit takes more money away from you, keeping you from achieving your financial goals. We have been brainwashed into thinking that we cannot live without credit. This is a false, ruthless idea that will rob you blind. Do not be fooled.

IRS studies show that 96 out of 100 financial failures are caused by the inability to delay gratification. They bought on credit and gave their future away.

ADVANTAGES WHEN YOU ARE DEBT-FREE

1. Financial freedom for you and your family

2. 80% more after-tax dollars to spend how you choose

3. You will build savings and become your own banker, credit card company, etc., by investing the money that had been going to debt-elimination payments

4. Your home is paid for, free and clear

5. Your car(s) are paid for, free and clear

6. Many more options

7. You have cash on hand for anything

8. Create more peace, calmness, and enjoyment which will add more years to your life, lower your medical bills, AND you can have a more romantic life

9. No credit card or installment loan payments

10. No boss can hold a job over your head

11. No possibility of bankruptcy or home foreclosure

12. No liabilities

13. Never have to worry about a credit rating as you will never need credit again

HOW to QUICKLY BECOME DEBT-FREE

ACHIEVE the American Dream-You want the best for your family. So husband, wife, and children agree on the concept and details of getting out of debt. Your family agrees:

1. That being debt-free will benefit the entire family.

2. You will be one of the 30% of Americans who have the means to pay for what you need, when you need it, so you won’t be living paycheck to paycheck.

3. You will be one of the 4% who retire rich.

4. That credit has short-term gain and long-term pain.

5. You will practice delayed gratification.

6. To spend money only on the necessities.

7. That if you want things and more things, you will pay cash.

8. To focus all available money on the bills until you are debt-free.

9. To cut up the credit cards.

BECOME a CIA Agent-Take a small notebook or index cards and track every penny and dollar you spend and what you spend it on for a week-just a week. Track all the cash you spend, the checks you write, the charges you put on your credit cards, and all automatic bills paid. At the end of the week, on another sheet of paper, list each expenditure under these headings: Necessity, Convenience, Indulgence, Appearance. How quickly would your debts be paid off with the money you are currently spending on Convenience, Indulgence, and Appearance?

QUICKLY become debt-free-here are a couple of methods. Specific details for each method can be found in Chapter 8 of 80 Proven Ways to Become a Millionaire. Choose the best way for your family and, then, follow it.

Method One is Power Pay-The first method is to pay off each debt one by one. Make a list of all the debt you owe, including your home. Implement this plan by paying off your smallest two debts first, regardless of interest rate. Having them paid off will give you and your family a positive psychological boost.

Method Two is Credit Consolidation-This applies to all your credit cards and loans only. The average household uses 14.2 credit cards. Just think of the time, cost, stress, and loss of prime family time given up each month to keep track and audit all those credit card statements.

Remember that Wealth is a Matter of Choice-Yours Alone. Choose today to become a millionaire, to focus on your wealth creation, to create a life you love for you and your loved ones.

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Eliminate Debt In Ten Steps

Posted on March 15th, 2008 by Linda Jaison

There are a lot of reasons that people end up in debt. Unfortunately, for most, the reason seems to be overspending and a disorganized or absent system

to manage money. Usually its a little bit of both.

There are legitimate reasons for being in debt. Job loss, and other factors. Whatever the reason, it is important to eliminate the debt, and not incur any more!

Here is the top ten list for eliminating your debt. Its not always easy to follow. But it is vital that you use this list as a guide. These ten rules will get you out of debt, and keep you out of debt in the future.

1. Make a realistic budget. Get all your bills written down. You have to see it in front of you for it to work. Make sure that the total of all your bills and expenses are within the amount of money that you earn. If your total bills and expenses are more than 90% of your income, you will need to make some changes.

2. Use the payment snowball to get your credit cards and consumer debt paid off. If you have a little cash and can afford to make a lump sum payment on your cards, pay them to below 50 percent of the card limit. This will increase your credit score. If you cant, then just begin to use the payment snowball system to pay off your cards beginning with the highest interest rate card. After its paid, cut it up and close the account.

3. Use cash! Keep only one credit card, in a drawer in your house. Don’t carry it with you. It isn’t real money. If you need a new refrigerator or an emergency car repair use it. But never allow the limit to exceed what you can easily pay off in 3 months. If you can afford the refrigerator with in cash, use cash.

4. Use direct deposit for you paychecks, and have a limit on what you can withdraw for personal use each week.

5. Make a commitment to reduce optional spending. Subscriptions, dining out, anywhere you can cut your expenses improves your situation.

6. Your home and housing expense should total less than 33 percent of your total household income. Talk to your insurance agent and see if you can reduce your mortgage insurance. Try to get a lower interest rate on your mortgage - make sure you understand your mortgage. NO, you cant get a million dollar loan for 1500 a month no matter what the predator on the other side of the table tells you. Go online and use a mortgage calculator to determine what your real, actual, fixed monthly payment is at the interest rate you want. If that amount is more than you can easily afford, then you may need to get an extra job. Also, some utility companies offer more economical utility plans. Check with your local utility provider.

7. Debt consolidation loans are a trap. If that sounds like a blanket statement, it is. If you have convinced yourself that this is the only way out, be careful. MAKE SURE that the total loan payment is actually less than you are paying on all your debts separately. If you can save money, and if you close ALL the paid off accounts immediately, then it can work. But remember, you have mortgaged your house to pay off a credit card. If you can’t pay the card, you can always file bankruptcy. if you can’t pay your mortgage, they will take your house. Be cautious!

8. Contact your creditors, and stay in contact with them. See if you can get a reduced interest rate. Some creditors will even eliminate the interest rate. Some are willing to work out optional repayment plans so they don’t have to resort to using debt collectors.

9. Become a great shopper. Become a coupon clipper. When your making a larger purchase, be sure and shop around. Negotiate. If you find a better deal somewhere else, let the salesman know. See if they can beat the price.

10. If you have the option, work some overtime now and then. Use the extra money to eliminate the debt. If your job doesn’t offer any opportunities for overtime, think about a small home business, or finding a part time job. Keep your eyes open and opportunities will turn up.

If you don’t think you can do this on your own, bankruptcy is probably still not the solution. It will leave you in financial ruin for at least 10 years. There are other options. Debt reduction specialists can be a huge help. Again, be careful. Some of them charge as much as 20% of the total debt as a fee. If you owe 20 thousand in credit card debt, thats $4,000.00 dollars. That 4 grand would have eliminated a lot of the debt. So, again, shop around even for help eliminating the debt.

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Online Education with Scholarships

Posted on March 15th, 2008 by Linda Jaison

The world around us will continue to change as we evolve with technology, which is why online education with scholarships is one of the best ways students

can obtain their degree. For those who have to work or don’t have the funding for a full time university there is online education. Online education allows a student to enroll in a degree program while doing the work completely from home. They never have to set foot in a classroom for their courses. This can be great depending on the degree program you are interested in. Another great part of online education is that scholarships are still available.

Regis University is just one of the accredited colleges a student can take full degree programs with online education. The college offers assistance in finding financial aid for their students, even by way of scholarships. When you are hoping to attend a university through Internet tuition you can speak with the financial aid department about financial aid available for you. You will need to find out the requirements for applying for this type of financial aid. Some require that you are taking a full time class load even from home. This may be too much for you if you also work full time. In most cases you are also required to keep a certain GPA.

With the thousands of scholarships available you will be able to find several that will offer funding for online education. You will need to apply by the deadline and have all the information they require ready, but the great news is you can still have your Internet tuition through an accredited university and have some type of financial aid. Every university is going to be different in what they can offer you for this type of financial aid so that may be the difference in which school you decide to attend.

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Spread The Christmas Financial Cheer

Posted on March 15th, 2008 by Linda Jaison

Christmas is the festive season and a time for family, friends, happiness and joy. Despites this, just the word ‘Christmas’ can bring on a feeling

of pure and utter dread for some. Christmas time has a nasty habit of placing intense strain on your wellbeing and finances. Many people feel a constant pressure to provide the latest and greatest gadgets for their loved ones. Stress levels rise and for some, situations may begin to appear as though they are sliding out of control.

But there is hope. There are certain tricks that you can implement to help avoid the stresses and strains of the Christmas period. By putting a small, manageable amount away each week you can help curb overspending. Another benefit of this is that it often allows you to save for Christmas gifts that may have been unaffordable if they where purchased at the last minute.

Pre Christmas sales can breed pure madness in shoppers. Brawls over the last few copies of the latest DVD, CD or toy can be a common occurrence. These incidents alone can make you very hesitant to hit the shops and embark on this stressful event!

Christmas is the busiest time of the year and it really is true that ‘the early bird gets the worm’. We are constantly bombarded with advertising messages during the Christmas rush telling us to ‘be quick, this item will not last’. By avoiding the Christmas rush and making purchases early, you’re saving yourself time, money and stress. Your also making sure that you don’t miss out on certain items. Sales occur often throughout the year so take advantage of them. This can help ensure that you get the best deals for your Christmas gifts.

Try buying long lasting foods and beverages in the months before Christmas to really ease the Christmas stress and save your wallet. Tinned food, sweets, packaged items and frozen meats can all be stored for long time periods. By buying a few sweets, nibbles, alcoholic or non-alcoholic beverages each week you will save yourself having to buy the lot in one go. You will be pleasantly surprised by how quickly items stock up if you buy one or two things per week.

If like many shoppers, you do leave your Christmas shopping until the last minute, you may find that a payday loan comes in very handy. Payday loans, otherwise known as cash advances, can help you out when your wallet is a little thinner than you’d like. They are usually available for any amount between $100 and $1000 and repayable over a short period of time. The repayments are broken down into manageable amounts with low fixed interest rates. Some companies can even provide you with a payday loan in your bank account within an hour. To obtain a payday loan most companies require that you meet certain requirements, such as being permanently employed for at least three months and earning at least $400 net per week.

By combining these tips, you’ll save your wallet and be able to relax during the festive season.

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Identifying Different Forms Of Debt

Posted on March 15th, 2008 by Linda Jaison

If there is one thing that is certain for many people, it is that the level of consumer debt among Americans is on the rise. The realm of debt can be a

complex thing to examine when you realize that there are different types of debt out there. Essentially, there are three categories and six forms or classes of debt that make up the majority of consumer debt in the country. Yet, when you attempt to get your footing among the complexities that become attached to certain types of debt, you can easily become confused without some fundamental knowledge. With some basic information at your disposal, you will be better equipped to manage your debt—and even find a way out of it.

The first category of debt consists of “secured” and “unsecured” debt. These are general terms that refer to a key aspect of the debt, which deals whether the any sort of collateral may be acquired by the lender in the event that the debtor is unable to pay off the balance of the debt. Key examples of each type include a home mortgage (secured debt) and a credit card debt (unsecured debt). In the case of the former, if you don’t pay the mortgage you might lose your house. With the latter, none of your property or assets will be in danger of seizure, if you fail to pay off a card balance.

Debt may also be categorized according to whether it is revolving debt or installment debt. These terms relate to how payment on an outstanding debt is paid. With some debts, like a mortgage or a car payment, you will have a fixed monthly payment that must be paid; this is an example of an installment debt. A revolving debt, on the other hand, is the opposite. The payment amount will fluctuate as the outstanding balances changes each mother. Credit cards are one of the most common examples of a revolving debt. With an installment debt, there is no fear of increasing the overall debt load, because the total amount of the debt is established at one time. While, with a revolving debt, you have a higher possibility of racking up a much larger debt like when you continue to charge to your credit card. Another difference between revolving and installment debt is the fact that the interest rate is typically higher with revolving debts than with installment debts.

Another category of debt has to deal with a specific source of debt: credit cards issued by banks and various stores. While most would consider these credit cards the same regardless of who issued them, there are differences that you should seriously consider. Regardless, of whether both have the same card logo or type, you need to know what makes each on distinct from one another. The major difference is typically found in the level of interest rate. (Store-issued cards generally have a higher interest rate than those issued by financial institutions.) Another difference has more to do how each of these cards is viewed by potential lenders as well as the credit ratings of those who have them.

The type of debt you have can actually work against you. That’s why you need to know what sort of debts you have and do your best to eliminate those that are more harmful than beneficial.

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