tag:blogger.com,1999:blog-27058997763055861932024-02-20T10:30:55.606-06:00Finance Information HarborThe Blog for Finance Information and SourcesFinance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.comBlogger24125tag:blogger.com,1999:blog-2705899776305586193.post-58170909415140089172007-09-24T06:50:00.001-05:002007-09-24T06:50:30.809-05:00Credit Damage: Getting Compensated for Your Loss<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">George Finder</font></span></div> <span class="style2">Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured — tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it's the credit victim who ends up having to live with a bad credit rating. <br>Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably. <br>Credit Ratings and Recovery <br> The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it's an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more. <br>"A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default," says Tom Key, a civil litigator practicing in Tustin, CA. <br>"Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract," Key says. "These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss." <br> Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. "Jurors want a specific loss that they can count, hold and see," says Key. "Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification." <br>Measuring Loss of Creditworthiness <br> Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage — until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients. "CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit," says Key. "In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek." <br> Key continues, "For example, if a client's credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit." In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. "That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating —measured over a seven-year period." <br>Isolated Compensation vs. Repeatable Compensation <br> The CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It's changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage. <br>"To have this kind of measurement is an exciting complexity in our society," says Key. "CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It's a method of turning isolated compensation into repeatable compensation. It's changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage." </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-60995663747316079832007-09-18T08:33:00.001-05:002007-09-18T08:33:35.918-05:00Today's Banks Are Not Just For Mortgages, Loans and Investments<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">David Arnold Livingston</font></span></div> <span class="style2">In today's capitalist world where security is one of the utmost concerns, the typical problem facing an individual is financial security. Money-related questions typically asked are: "Where can I keep my money? What is the best way to invest it and make it grow? Who can I borrow money from?" And the answer: a bank – a financial institution dealing with financial concerns. <br> <br>Banks are known to provide financial services, from storing assets (liquid or otherwise) to extending credit. From a bank customer's point of view, this translates to services ranging from making deposits to asking for a loan. People are now even capable of paying their bills and most of their purchases thru different banking methods. <br> <br>Historically, banks have been seen as heartless and opportunistic. They were seen as vicious businesses victimizing the innocent and honest. Of course, eventually, through time, this view has drastically changed. Banks today are one of the highly-respected and successful business establishments in the country. Now that people are more educated about the banking operations, they have learned to trust these businesses with not only their savings and assets, but with other transactions as well. <br> <br>It is said that the word bank came from the Italian word banca, which came from Germany and means bench. Money lenders (now popularly known as "loan sharks") from Northern Italy used to conduct their business in open areas, each working from his own bench. Similarly, the term bankrupt (which means broke) was derived from the term banca rotta, or a broken bench. <br> <br>Now, I'm sure you've heard of central banks, savings banks, commercial banks, private banks, etc. What differentiates one from the other? There are many types of banks. <br> <br>In a nutshell, here are some of the more popular ones and what commonly distinguishes each from the others: <br> <br>Central banks are usually charged with controlling the monetary policies, including the money supply. They are also tasked with the printing of paper money. Savings banks traditionally offer services like savings and mortgages. But at present, they have expanded to offer other forms of financial assistance. Commercial banks usually offer financial services to large corporations or businesses. Private banks manage the assets of the ultra-rich. They are usually located in jurisdictions with low taxation and regulation (Yes, those infamous Swiss banks and Swiss accounts…). <br> <br>There are also merchant banks, which provide capital to firms in the form of shares rather than loans; investment banks, which deal with selling of stocks and bonds and with advising on mergers; retail banks, where the primary customers are individuals and; universal banks, which offer diversified financial services and engage in several different banking activities. <br> <br>How does such a business earn its money? Traditionally, a bank's main sources of income come from transaction fees from its range of financial services and from the interests it charges for its loans. But in the past years, banks have evolved to ensure their continued profitability despite the changing market conditions. Banking, investment and insurance functions were merged to cater to the consumer's "one-stop shopping" mentality. <br> <br>Indeed, banks have come a long way from the time they conducted their business on benches. They are changing because people are changing. And it all started on the day when man felt that his valuables were no longer safe in his own home. After all, anyone can sleep more peacefully at night knowing that his assets are tucked away in a secure place. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-26109675792417036522007-09-17T06:30:00.001-05:002007-09-17T06:30:03.789-05:00Applying For A Credit Card With No Credit History – Tips You Need to Know<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Gordon Goh</font></span></div> <span class="style2">Oddly enough, not only will bad credit work against you when applying for a loan or a credit card, but no credit will too. Even though this doesn't seem fair, it is the way things work in the complicated world of consumer credit. Lenders are leery about opening accounts for people with no credit history because they simply have nothing to base your reliability on. <br> <br>So, if you can't build a credit history without credit and you can't get credit without a credit history, just what has a person to do? It's nearly impossible to rent a car, stay in a hotel, or shop online without a credit card, so let's explore a few of the options that can eliminate this Catch-22. <br> <br>Available Credit Options <br> <br>Although many of the major credit card companies won't give you a card without a credit history, some smaller ones, like department stores, will. Find a department store that will issue you a card and apply for it. You can try getting a gas station card also. Either way, use your card but be sure to make all payments on time. Your goal is to build a good credit history, not just get a credit card. <br> <br>Find a credit card company that will review your overall financial situation and not just your credit history. Some lenders will look at your employment history, your housing situation, and how often you have moved. If this is all on the up and up, they may approve your application. Again, use this card wisely. <br> <br>Credit Unions <br> <br>If you are a credit union member, or are eligible for membership, see what their card issuing terms are. Although they are no giving out cards with their eyes closed, they will often have more relaxed conditions for members. You no longer have to work for a specific company to be eligible to join a credit union. So it's well worth checking if there's one in your area. <br> <br>Secured Credit Cards <br> <br>Secured credit cards are offered by lenders who will give you a line of credit that either matches, or is slightly higher than, a cash deposit that you give them to hold. As your experience with the card grows, these lenders will often raise your limit without requiring you to increase your deposit. Eventually, you can use your experience with this lender to apply for cards that are not secured. <br> <br>Student Credit Cards <br> <br>If you are a student, then you'll be best off with a student credit card. Student credit cards can be a great way of building the credit history that you will need to depend upon after graduation. The important thing here is to remember to use that opportunity wisely. Many banks will issue college students a credit card, especially banks that are located in college or university cities and towns. <br> <br>When you do manage to get a credit card, remember that you are establishing a credit history. Show that you are a good financial risk by paying the bill on time. Don't go crazy with the spending. It will only cause you problems in the future. <br> </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-10573537008393518792007-09-13T15:06:00.001-05:002007-09-13T15:06:37.561-05:00How A Decision Can Save Your Life<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Saleem Rana</font></span></div> <span class="style2">Mr. Galen Litchfield, the manager of Asia Life Insurance, was in Shanghai when Japanese troops invaded. This was in 1942, after the invasion of Pearl Harbor. <br> <br>A Japanese Admiral was sent to liquidate the company's assets. Litchfield was ordered to assist in this liquidation. He didn't have any choice. He could either cooperate or face the grim consequences of certain death. <br> <br>He was ordered to compile a list of the company's assets—but there was one block of securities worth $750,000, which he left off the list because they belonged to the Hong Kong organization and were not part of the Shanghai assets. <br> <br>Still, he feared the Admiral's wrath should the omission be discovered. <br> <br>And it was discovered—soon afterward. <br> <br>Litchfield wasn't in the office when the discovery was made; only the head accountant. <br> <br>Litchfield received the chilling new on a Sunday afternoon. The accountant told him that the Admiral had flown into a terrible rage. He had stomped and cursed and branded Litchfield a thief, traitor, and scoundrel. <br> <br>Litchfield knew the consequences of defying the Japanese Army. They were grim. He would be fling into the Bridgehouse! The name alone filled people with fear. It was a torture chamber. Litchfield had personal friends who had committed suicide rather than be taken to the Bridgehouse. Other friends had died in the Bridgehouse after only ten days. Now it seemed Litchfield himself was destined for the chamber of horror. <br> <br>Litchfield went to the typewriter in his room in the Y.M.C.A. He wrote out two questions. The first: What am I worrying about? The second: What can I do about it? He had used this technique for years whenever he had a problem. Now, the answers might save his life. Writing down the answers to these questions clarified his thinking. <br> <br>He wrote that the problem was that he was afraid that he might be thrown in the Bridgehouse. <br> <br>"What," he asked himself, "would he do about it?" <br> <br>He spent hours answering the second question. He came up with four possible courses of action and weighed each one. <br> <br>One, he could try to speak to the Japanese Admiral. But the Admiral spoke no English. He could use the interpreter, but this might only irritate the Admiral, for he was an irrational and cruel man who would rather let the sadists in the Bridgehouse deal with interrogations. <br> <br>Two, he could try to escape. But his chances were slim. The Japanese kept track of him all the time. He had to check in and out of his room at the Y.M.C.A. If he did get caught trying to escape, he would be shot. <br> <br>Three, he could stay in his room and never go near the office again. But, if he did, the Admiral would become suspicious. Soldiers would be sent to get him and they would throw him into the Bridgehouse. <br> <br>Four, he could go down to the office on Monday morning as usual, pretending that nothing was wrong. Perhaps, the Admiral would have cooled off by then. Perhaps, he would be too busy to remember. Or, perhaps, the Admiral would give him a chance to explain why he made the omission in the list. <br> <br>After long deliberation, the fourth option appeared favorable. It offered him the best chance of survival. <br> <br>As soon as he had made the decision and made a commitment to follow it, a wave of relief swept over him. Exhausted, he went to bed and slept well. <br> <br>When he entered the office on Monday, the Admiral was there, smoking a cigarette. He glared at Litchfield but said nothing. Six weeks passed, and still the Admiral did nothing to bring up the topic. Then—the Admiral was sent back to Tokyo. <br> <br>The Success Principle <br> <br>Make a decision and act on it. It could even save your life. <br> <br>The Principle At Work <br> <br>Galen Litchfield's experience illustrates the importance of arriving at a decision. He was caught in a no-win situation. Any decision could have been the wrong one. There was no way for him to resolve this dilemma. However, not making a decision is also a decision. It is choosing to act impulsively, and not rationally. There are also consequences to this. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-19119680288476654532007-09-06T11:19:00.001-05:002007-09-06T11:19:27.763-05:00Debt Relief From Debt Consolidationby: <font color="#ff6600"><b class="author">Jakob Jelling</b> </font> <p>If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing "relief" from the current debt by shrinking it down to a single manageable debt. </p> <p>Using home equity to consolidate debts </p> <p>One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner's home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time. </p> <p>Refinancing loans </p> <p>People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one. </p> <p>Credit card consolidation </p> <p>A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year's end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well. </p> <p>All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better. </p> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-51786958833418756812007-09-05T09:13:00.001-05:002007-09-05T09:13:33.558-05:00Get an Auto Loan the Smart Way<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Joel Walsh</font></span></div> <span class="style2">Did you know that most people pay hundreds or thousands of dollars more on auto loans than they have to? Get an auto loan the smart way. Read on. <br> <br>Most people really get taken for a ride on their auto loan. Did you know that differences in the total cost of different auto loans can run into a thousand dollars or more? Here's how you can get the lowest rate: <br> <br> * <br> <br> Make a list of different auto loan lenders and their interest rates and terms, before you go to the dealer (the web is usually the easiest way to do that). Did you know dealers get a commission on the loans they refer? If you're not careful, that extra bit of money for the lender could mean you pay a higher rate than you would if you got the loan yourself. <br> <br> * <br> <br> Get a credit report and figure out your FICO scores. Removing any incorrect negative information from your report will help you get a better deal. Knowing exactly what your score is will help you figure out what interest rate you can realistically get. <br> <br> * <br> <br> Have bad credit? Try going to your credit union, bank or another institution where you have a relationship. Lenders like to help out established customers. If your bank still won't help, online "bad credit auto loan" lenders usually offer better less expensive loans than dealers who advertise their great deals for people with poor credit. <br> <br> * <br> <br> Use a vehicle loan calculator. It will tell you what your loan will cost each month. It saves you the time of looking at vehicles you can't afford, makes you aware of what information you'll need to apply for a loan, and is a "reality check" of your financial condition. <br> <br> * <br> <br> Comparison shop, comparison shop, comparison shop. You don't get the least expensive car by choosing a dealer at random, and you won't get the least expensive auto loan that way, either. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-73227234765213088492007-09-04T06:26:00.001-05:002007-09-04T06:26:18.144-05:00Do You Need Bad Credit Help<span class="style2">? Are you one of thousands with no <br>credit and no collateral to help secure approval, or you just <br>have extremely bad credit and no one wants to help you, and all <br>you hear is stories and more stories? <br> <br>Bad credit is a term used to describe a poor credit rating. <br>Common practices that can damage a credit rating include making <br>late payments, skipping payments, exceeding card limits or <br>declaring bankruptcy. Bad Credit can result in being denied <br>credit. <br> <br>Bad credit can result in a negative rating from the credit <br>reporting agencies. Many factors can contribute to someone <br>getting a "bad credit" rating, among these are non-payment of an <br>account or late payments over an extended length of time. <br>Whether non-payment of an account is willful or due to financial <br>hardship, the result can be the same, a negative rating which <br>will result in a low credit score. However, lenders are more <br>willing to work with individuals if the person contacts the <br>lender to let them know they are having problems meeting their <br>commitment to pay. 100% Online Debt Relief! No Phone Calls! You <br>must have at least $2,500 of total debt over two or more <br>accounts to qualify for our Help. Name, email, and Zip Code are <br>required. US Residents only. No phone call required - all <br>customer interaction is done online! <br> <br>Christian Debt Consolidation Services Professional Debt <br>Consolidation with a Christian perspective. Lower monthly <br>payments. Reduce or Eliminate High interest rates. Apply now for <br>a FREE NO-OBLIGATION QUOTE! <br> <br>Fast Loans Online by DrCredit We are currently able to provide <br>auto loans, mortgage loans, debt counseling, home equity, <br>refinance loans, debt consolidation loans, personal loans and <br>much more... <br> <br>A credit score is defined as a statistical method of assessing <br>an applicant's credit worthiness. An applicant's credit card <br>history; amount of outstanding debt; the type of credit used; <br>negative information such as bankruptcies or late payments; <br>collection accounts and judgments; too little credit history, <br>and too many credit lines with the maximum amount borrowed are <br>all included in credit-scoring models to determine the credit <br>score. <br> <br>Raising your credit score is possible. It's a well known fact <br>that lenders will give people with higher credit scores lower <br>interest rates on mortgages, car loans and credit cards. If your <br>credit score falls under 620 just getting loans and credit cards <br>with reasonable terms is difficult. <br> <br>Here are five things that you can use to raise credit score. <br> <br>1. Correct obvious mistakes. <br> <br>Your credit score is what shows up in your credit report. Review <br>your reports from all three credit bureaus for accuracy once a <br>year as well as several months before applying for a loan. <br>Changing a mistake on your report can take 30 days to three <br>months, or more. Get Your credit report from the three major <br>bureaus: Experian, Trans Union and Equifax. <br> <br>2. Pay Your Bills On Time <br> <br>Your payment history makes up 35% of your total credit score. <br>Your recent payment history will carry much more weight than <br>what happened five years ago. <br> <br>Missing just one payment on anything can knock 50 to 100 points <br>off of your credit score. <br> <br>Paying your bills on time is the best way to get started <br>rebuilding your credit rating and raising your credit score. <br> <br>3. Reduce your credit card balances. <br> <br>A heavily weighted factor in your FICO score is how much money <br>you owe on your credit cards relative to your total credit <br>limit. Generally, it's good to keep your balances at or below 25 <br>percent of your credit card limit, said Jeanne Kelly, founder of <br>The Kelly Group in Brookfield, Conn., which helps clients <br>improve their credit scores. <br> <br>4. Don't Close Old Accounts <br> <br>In the past people were told to close old accounts they weren't <br>using. But with today's current scoring methods that could <br>actually hurt your credit score. <br> <br>Closing old or paid off credit accounts lowers the total credit <br>available to you and makes any balances you have appear larger <br>in credit score calculations. Closing your oldest accounts can <br>actually shorten the length of your credit history and to a <br>lender it makes you less credit worthy. <br> <br>If you are trying to minimize identity theft and it's worth the <br>peace of mind for you to close your old or paid off accounts, <br>the good news is it will only lower you score a minimal amount. <br>But just by keeping those old accounts open you can raise credit <br>score for you. <br> <br>5. Avoid Bankruptcy <br> <br>Bankruptcy is the single worst thing you can do to your credit <br>score. Bankruptcy will lower your credit score by 200 points or <br>more and is very difficult to come back from. <br> <br>Once your credit score falls below 620, any loan you get will be <br>far more expensive. A bankruptcy on your credit record is <br>reported for up to 10 years. <br> <br>The reality of a bankruptcy is it will limit you to <br>high-interest lenders that will squeeze out high interest rate <br>payments from you for years. <br> <br>It is better to get credit counseling to help you with your <br>bills and avoid bankruptcy at all costs. By getting credit <br>counseling instead of declaring bankruptcy you can raise credit <br>score over a much shorter period of time. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-66929580784914963012007-09-03T08:21:00.001-05:002007-09-03T08:21:37.678-05:00Debt Relief From Debt Consolidationby: <font color="#ff6600"><b class="author">Jakob Jelling</b> </font> <p>If you are up to your neck in debt, there may seem like there is no relief in sight. In fact this is not necessarily the truth. There are ways to take all of your stifling bills and roll them up into one neat package by using debt consolidation in two very popular forms Home Equity Loans, Refinancing Loans, and a Consolidation Credit Card. All of these instruments provide the debtor with one thing "relief" from the current debt by shrinking it down to a single manageable debt. </p> <p>Using home equity to consolidate debts </p> <p>One of the popular methods of debt consolidation today is the Home Equity Loan. What happens is that the debt is extinguished using the equity from a homeowner's home. A loan is created outside of the mortgage in order to satisfy the debts. Should the homeowner default on the loan, their house is in jeopardy of being foreclosed upon if that loan is not satisfied with a specified amount of time. </p> <p>Refinancing loans </p> <p>People often consume the debt by rolling it into a new mortgage. This way the house costs more money to the borrower, but the debt is extinguished at close and the debt is neatly rolled away into the mortgage securely. Upon settlement of the loan, the debts are paid in full and satisfied. The clock on the mortgage is reset to day one. </p> <p>Credit card consolidation </p> <p>A low interest credit card is offered to the borrower to include any outstanding credit and loan balances. The interest rate is a low fixed rate for a period of up to one year, upon the year's end it will resume at its normal rate. Upon acceptance and terms the account should be closed once paid in full and payments be made directly to the new credit card provider. Some people have been able to master paying off one credit card with another to keep the debt revolving and interest rates low. Some people fail to close out the previous creditors account and run them back up again as well. </p> <p>All three of these options provide solid relief for the debt and help them reconstruct and manage their debt better. </p> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-17988266050955700802007-09-02T06:50:00.001-05:002007-09-02T06:50:31.997-05:0015 Construction Loan "Inside Secrets" To Building Your New Home<table height="114" width="99%"><tbody><tr> </tr> <tr> <td align="left" height="19"><div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Rick Gomez</font></span></div></td> </tr> <tr> <td align="left" height="12"><span class="style2"> 1. Which construction loans are available and which one should you apply for? <br> <br>Home loan banking and the internet has changed the mortgage and construction loan industry forever. Today's construction loan choices include the 30 year fixed, 15 year fixed, 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM and don't forget the popular interest only loans. <br> <br>The construction loan of the past was a short term 1 year loan that the customer would have to refinance into a new loan once the construction was completed. <br> <br>This two time process cost the customer two sets of closing costs and you would have to re-qualify for the new loan once the home was completed. <br> <br>The most popular construction loan today is the "One Time Close" but not all are created equal. Just like any product there are the best loans, good loans and downright bad loans. <br> <br>With today's technology you now have the ability to obtain a construction loan from the best banks in the country and sign your loan documents at your local title company or escrow office. This benefit allows you to have the most competitive construction loan available. <br> <br>The loan that you should apply for is simple; ask for the lowest rate, one time close for a specific period of time that you think you'll be living there. <br> <br>2. Which lenders/banks have the best construction loans and what do you need to apply? <br> <br>There are plenty of banks willing to lend money for mortgages, refinancing, home equity loans and every other type of loan. But if you're planning on building a new home, where do you get the best construction loan with the most competitive pricing? <br> <br>More importantly what is a good construction loan? <br>A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment. <br> <br>The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows which banks are the best. <br> <br>The best banks can offer you a low rate now, upfront, before you start building your new home. <br> <br>3. Should you go directly to your local bank or to a loan broker for your loan? <br> <br>Most banks offer loans, and going to them is like shopping at a Ford dealer. The only thing you can get at the Ford dealer is a Ford. But what if you want choices? <br> <br>One way to get different choices is to go shopping to every bank in town. Or you can call an experienced construction loan broker who has done all of the homework for you and has direct access to hundreds of banks nationwide. <br> <br>A broker is a representative for hundreds of banks. Although the broker serves as middle-man, his or her services will not cost you anything extra. That's because brokers get loans at wholesale rates, and pass them along to their clients at retail prices, just like any other business. <br> <br>The difference between wholesale and retail is how brokers make money. Therefore, you get the same rate from a broker as if you went directly to the lender yourself. <br> <br>In Fact, because or their volume, many brokers are able to offer their clients better deals than you can get by talking to the banks on you own. <br> <br>With an experienced construction loan broker you can shop dozens of the most competitive banks nationwide, work with wholesale pricing and can negotiate on rates and pricing. <br> <br>4. Should you lock in your construction loan before you start building or let the interest rate float? <br> <br>If the rates are heading upward, lock. If the rates are stable, relax. If the rates are headed downward, float. <br> <br>Right now interest rates are at an all time low and can only go up in the near future so make sure your construction loan is locked into today's best interest rates with the ability to float downward. <br> <br>Inexperienced loan officers will offer their customers an enticing low adjustable rate during construction without an upfront lock-in and the customer may end up having to lock into higher interest rates when the home is completed. <br> <br>Or the customer is sold on a higher rate during construction with a float down option after the home is built. Again, the rate could be much higher when the home is completed. <br>Meanwhile the loan officer has been paid and has moved on to the next loan. The only time you want this type of loan is if it's the only loan you qualify for. <br> <br>Most loan officers do not explain this to their customers until it's too late (Closing). <br> <br>Always ask. Is the construction loan rate locked upfront or floating during the construction loan period? Then ask, is the rate during the construction loan the same rate when the loan converts into the mortgage period. <br> <br>5. What experience does your construction loan officer have and does it matter? <br> <br>When it comes to money its amazing how fast any loan officer becomes an instant expert at construction loans. You must keep in mind that all loan officers are salespeople. Yes, I know they have fancy titles like loan officer or vice president but the title is nothing but a fancy name for loan salesperson. <br> <br>Loan salespeople usually have one main goal in mind when helping you with your loan request and that is the commission. By the way, the fancy name for commission in the loan business is called a loan fee, points or yield spread premium (YSP). <br> <br>Now don't get me wrong, there are a lot of good honest sales people (loan officers) that work very hard at providing you the best service and rates. What's important is distinguishing the good from the bad. <br> <br>The following questions allow you to quickly find out if your loan officer is experienced at construction loans. <br> <br>1. How long have you been doing construction loans? 5 years or more is best. <br> <br>2. What is the loan to cost (LTC) required for construction loans? This is cash equity such as down payment on land. This can range from 5 to 20%. <br> <br>3. What is better? The voucher or draw disbursement system and why? Draw is now the most popular because the customer has the control of the money. <br> <br>If the loan officer (sales person) can answer these questions with no problem then they have passed a pretty good litmus test. <br> <br>If you really want to throw a curve at them, ask the loan officer if they have ever built a home themselves and what type of construction loan did they get. <br> <br>If you find a loan officer that has gone through the experience of building a home themselves then the odds are you have found an experienced loan officer. <br> <br>6. Qualifying for your construction loan, exactly how is it done? <br> <br>The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture. <br> <br>The completed loan application will tell the loan officer many things including, <br>1. What type of loan you want. <br>2. How much money you need. <br>3. Your social security number. <br>4. Your current employers. <br>5. A list of all you assets (money) and liabilities (bills). <br>6. How much money you make. <br>7. How much real estate you own. <br> <br>Once the loan officer has your loan application in hand they can determine whether you can qualify for a loan. <br>One of the first items pulled is your credit report. The credit report is going to tell 3 main important things. <br> <br>1. Show your current credit score. The credit score can range from 500 to 800. <br>2. Show a complete list of all your monthly liabilities (bills). <br>3. Show all past credit problems including bankruptcies, foreclosures and late payments. <br> <br>With this information the loan officer will do an analysis to determine if you can qualify for the loan amount that you're looking for. <br> <br>This analysis determines a ratio called the (income to debt ratio) and depending on the banks underwriting guidelines this ratio will usually range from 36% to 45%. <br> <br>The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income. <br> <br>Some banks will allow you to exceed this ratio if you have an excellent credit history and excellent credit score. <br>The current and the most popular method of qualifying for a loan today is the stated income loan. <br> <br>Stated income allows you to qualify without verifying your income on your tax returns, W 2's or pay stubs. The only thing the bank verifies when applying for a stated income loan is your credit score, liquid assets and that you're employed. <br> <br>7. How not to be taken by the oldest trick in the book "Bait and Switch"? <br> <br>The mortgage lending business is notorious for baiting and switching. <br> <br>Baiting and Switching is when a loan officer or advertisement offers you one thing and then tries to sells you something else. <br>Typical signs of baiting and switching are obvious, some basic examples are: <br> <br>1. Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished. <br>2. You are offered a construction loan with no points and no loan fee's. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan. <br>3. You are told that you will not have any payments while you're building. What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount. <br>Remember three important facts and you will always be in good shape. <br> <br>1. If it sounds too good to be true there's usually a reason. <br>2. Always get your quote in writing, (ask for a good faith estimate). <br>3. If you are satisfied with the rate and construction loan program that you are quoted, ask to lock it in upfront. <br>On the flipside, it is very important to realize that most loan products typically go hand in hand with banking guidelines. These guidelines are provided to loan officers to coincide with the customer's qualifications. <br> <br>For example, if you have a very high (FICO) credit score with land free and clear, you have more loan options than the person with a very low (FICO) score and no land equity. <br> <br> <br>8. Now for the biggest secret of all, ready? All banks have access to the same rates and the only reason everyone ends up with a different rate is directly related to how much your loan officer and bank is going to profit from you. <br>You should probably read that one again. <br> <br>Your loan officer gets paid like all sales people either by: <br>1. Salary plus commission <br>2. Commission only. <br>It doesn't matter if you walk directly into a bank or work with a broker, basically everyone gets paid the same. <br>If you walk directly into a bank the loan officer most likely gets a basic salary and a percentage of the loan origination fee (points and yield spread premiums). If you work with a broker the broker usually works on a straight commission (points and yield spread premiums). <br> <br>Becoming a broker allows the loan officer the ability to offer their customers the best loans with the most options. <br>It always amazes me when I see TV commercials or hear radio commercials advertising $395, zero closing costs. I always wonder if people understand how they can do that. <br>Ok, here is how it is done. <br> <br>The inside secret is that in exchange for these low or zero closing costs the lenders will make their profits and cover the costs of the loan by charging you a higher interest rate. <br>This higher interest rate pays what they call in our industry a (YSP) yield spread premium. <br> <br>By charging you a higher interest rate over the life of the loan the bank can easily afford the commercials, commissions, payroll, and cover the costs of the loan while still making a profit. Also the service is usually very poor and impersonal. <br> <br>So the next time you see advertising with no closing costs you will know exactly how they are doing it. <br> <br>So please remember that there is no such thing as a free lunch in any business. Business wouldn't be business if there were no profits. The most important thing is that you want the best loan available at a fair price with an experienced loan officer. <br> <br>9. What are interest reserves and contingency funds doing in your closing costs? <br> <br>The two things most customers do not factor into the cost of the building their new home are interest reserves and contingency funds. <br> <br>Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built. <br> <br>The payments are made from this interest reserve account and no, it's not free. This reserve is added to your construction loan amount. <br> <br>Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built. <br> <br>The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount. <br> <br>If you do not want interest reserves added to your construction loan amount you can ask to make your own monthly construction loan payment. <br> <br>Contingency funds are added to the loan amount just in case you need more money to build your new home. <br> <br>With all good intentions construction loans tend to have cost over runs. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances. <br> <br>If you don't need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home. <br> <br>So when you apply for a construction loan ask your loan officer to provide you a copy of the estimated construction loan budget. <br> <br>The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees. <br> <br> <br>10. What is loan to value (LTV) and loan to cost (LTC)? Why it's probably the most important factor in getting approved for a construction loan besides your income and credit. <br> <br>Initially most banks are concerned with loan to appraised value (LTV) but banks are really more concerned with how much cash you have in the project (LTC). <br> <br>If you were buying a home instead of building you would normally have to put 20% of the purchase price as a down payment. <br> <br>Since you're building a home your cash equity usually comes in the form of how much cash you put down on your land. <br>Cash equity is king when applying for a construction loan. <br> <br>For example, if you bought a $200,000 piece of land and the land is owned free and clear you have a lot of cash equity. <br>With this much cash equity you will most likely not have to bring in any additional cash. <br> <br>Or if you bought a piece of land over 12 months ago for $100,000 and its now worth $200,000 the bank will use the current value because you bought it over 12 months ago. <br>In both cases you have brought $200,000 cash equity to the table. <br> <br>Now if you just bought a piece of land for $200,000 and you only put down $20,000 most banks will want to see 10% to 20% cash into the total project. <br> <br>Other qualifying cash equity that can be counted are any pre-paid's such as plans, grading, permits etc. These pre-paid's can be used for cash equity or you can be reimbursed from the construction loan at closing. <br> <br>11. Should you hire a builder or be an owner builder? <br> <br>Do you really want to be an owner-builder? The goal of being an owner builder is mainly to save money. Some people can save quite a bit of money if done correctly. <br>Some people are not meant to be owner builder. <br> <br>Possible problems when acting as owner builder are: <br>1. Construction cost over runs. <br>2. The best banks with the best rates require a builder or supervisor. <br>3. Managing contractors to finish on time or to show up for work. <br>4. Depleting your personal savings. <br>5. The need to borrow more money. <br>6. Loan extension penalties. <br>7. Being taken by unscrupulous contractors. <br>8. The need to refinance your construction loan. <br>9. Foreclosure. <br> <br>I could go on and on about the horror stories I hear from Owner Builders that did not get a construction loan and acted as their owner builder. <br> <br>If you have never built a home before and absolutely need to act as owner builder please take my advice and hire a reputable builder to supervise you and the building of your new home, for a much smaller fee than their normal fee. <br> <br>The builder/supervisor will help you with the cost breakdown and manage the subcontracting on an as needed basis. If one of your contractors gets out of hand or you need help of any kind, you can call the supervisor for assistance. <br> <br>Your job is to make sure you are hiring the right people to complete your home. It can make the difference between happiness and misery. <br> <br>For those of you that have experience at building homes but do not have a license ask about our owner builder program. To qualify you will need a resume showing your experience. <br> <br>If you decide on hiring a builder to do everything make sure you hire a reputable builder or supervisor with a good reputation and plenty of references. <br> <br>Ask your friends if they know a good builder and when you start to hear the same name over and over you know you've found a good one. Ask the building inspector for a list of reputable builders. <br> <br>The most important point is shop around until you find a builder with the most reputable and honest background. If you pay a little more for an honest and reputable builder or supervisor you will be very thankful before, during and after your home is completed <br> <br>12. How does your builder determine how much your home will cost to build? <br> <br>The Estimated Cost Breakdown of your home is probably one of the most important forms in the construction loan package. This is the breakdown of each particular cost of construction of the home. The foundation, lumber, framing, plumbing, heating, electrical, painting, and builder's profit, etc. <br> <br>The builder usually completes this form to show you exactly what it will cost to build your new home. The most important thing to remember here is that you do not want to underbid any line item and you do not want to overbid any line item. You want accurate numbers from real bids (not guesses) and a 5% contingency for cost overruns. <br> <br>Good builders will send out the house plans to their contractors for specific bidding on each main item or can estimate the home themselves. The builder will send one set of plans to the foundation contractor, one set of plans to the framer, one set of plans to the plumber, etc, etc. <br> <br>When all the numbers come in, the builder will fill out the cost breakdown and come up with a total cost to build your new home. <br> <br>Bad builders will use the WAG method of estimating the cost of building your new home. The WAG method stands for "Wild Ass Guesses". This method is the most dangerous since it can lead to under and over bidding. <br> <br>The last method of bidding is simply to over inflate every single line item on the cost breakdown. This is the most profitable method for the builder and the most expensive to the customer. <br> <br>This is why you want to find an honest, reputable builder with a good reputation in your community. Once the cost breakdown is completed and you plan on hiring this builder to build you new home you will need to type up a contract. The contract needs to equal the added total of the cost breakdown. <br> <br>Most builders will provide the contract but make sure you read it carefully and that you add your requirements as well. There are two types of contracts <br> <br>1. Fixed Contract: This contract is simple and straightforward. Take the total of the cost breakdown and put that fixed number into the contract. The builder will provide a list of responsibilities. <br>2. Cost plus Contract. This type of contract is usually for large construction loan projects. <br>A. The customer wants to make a lot of changes to their home as its being built. <br>B. The construction loan period to build the home is 18 months so construction costs can change drastically. The builder prefers this contract to protect the costs and profits. <br> <br>13. How does your builder get paid while your home is being built? <br> <br>There are two methods that banks use to make sure your builder gets paid while building your home. <br> <br>The Voucher Reimbursement system has been around for quite a while. As usual you'll have some builders that are very familiar with this method of payment and do not like change. <br>Most builders are really only concerned with how fast they can be paid and how often they can be paid. <br> <br>Most banks find that the voucher system is simply too much paperwork to deal with anymore. The builder is given a big book of vouchers that looks like a check book and when they want to get paid or need to pay a contractor they need to fill out a voucher form. This voucher form is a request for payment and as long as the contractor has signed the lien release the bank will pay the amount requested. <br> <br>The bank will also request an inspection throughout the construction loan to make sure that the work is completed. The Draw Reimbursement system is becoming the standard for construction loan funding for most banks. <br> <br>The main difference is that the bank puts the accounting responsibility on you or your contractor. The bank uses your cost breakdown as the guide for the draws. Some banks use specific schedules of 4 to 7 draws based on completed construction milestones, such as foundation or framing. <br> <br>The draw systems also allow the choice of taking draws on a monthly basis, collecting partial payment for work and material items that have been completed. <br> <br>I personally prefer the draw reimbursement system because: <br>1. It requires less work. <br>2. Provides more control for both the customer and the builder. <br>3. The funds are wired directly into your bank account. <br>3. It's easier to use than the voucher system. <br>4. Some banks now have online draw requests. <br> <br>14. What type of construction loan insurance is required and who is required to get it? <br> <br>The reality of construction loan insurance. There are three types of insurance needed to build. All banks require the first two insurances, course of construction and general liability. Workman's compensation is only required if your builder has employees. <br> <br>1. Course of Construction Insurance. This policy is an all risk policy to include, fire, extended coverage, builder's risk, replacement cost, vandalism and malicious mischief insurance coverage. <br>2. General Liability Insurance. You or your builder can provide this policy. This policy is a comprehensive general policy or a broad form liability endorsement. The minimum amount of $300,000 for each occurrence is required. If the builder provides the insurance a general policy of $1,000,000 or a broad form liability endorsement is required. <br>3. Workman's Compensation Insurance. If your builder owns his own company and has employees that are helping to build your home, workman's compensation is required. <br> <br>If the builder simply subcontracts out the work and does not have employees per se, they will need to write a letter acknowledging that they do not have employees and are not required to have WCI. <br> <br>15. Has your loan officer structured your construction loan properly and why it's so important? <br> <br>I get loans all the time from customers that went to another lender or broker and were either turned down or were offered a below average construction loan. <br> <br>The reason was because the loan was not structured properly before it was sent into the bank. Structuring a loan properly is simply making sure that you match the customer's loan request to the banks underwriting guidelines. <br> <br>Recently I received a construction loan request from a customer that was turned down by a large national bank. The loan officer had calculated the income incorrectly and submitted the loan as full documentation. <br> <br>The customer owned his own business and had a lot of tax deductions on his tax returns. The way banks qualify customers as full documentation is very conservative and the loan was turned down. <br> <br>We took the loan, found the problems upfront and submitted the loan as stated income. <br> <br>The customer was approved and built a beautiful home in Rancho Santa Fe CA. <br> <br>Structuring construction loans for approval is vitally important and is the last thing on most customers' minds. Each and every time I receive a loan from a customer with a bad loan experience it is always because the loan officer did not specialize in construction loans and did not structure the loan accordingly. <br> <br>Other common mis-structured loan scenarios include: <br>1. Low cash equity. <br>2. Improperly completed appraisal. <br>3. Unexplained credit derogatory. <br>4. Income incorrectly calculated. <br>5. Mismatch of customer loan request to the correct lender. <br>6. Plain and simple incompetence <br>The old saying "you get what you pay for" is especially true when obtaining financing in building your new home. <br> </span></td></tr></tbody></table> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-87920827901551842702007-09-01T08:50:00.000-05:002007-09-01T08:51:43.568-05:00How do commercial debt reduction companies work?<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">Jon Butt</span></span></div> <span class="style2">Don’t stress it – commercial debt reduction companies are proven authorities in debt negotiation to reduce your commercial debt in the best way possible for you, especially when you’re least interested in the worst alternatives like Chapter 11.<br /><br />The best debt negotiation companies are there for your small business or medium-sized company - the size of the companies involved is never an issue to these debt negotiation professionals. The heart of the matter is debt reduction to take your commercial debt through rough patches including recession that creates those limited dry spells in your cash flow.<br /><br />Debt Negotiation Will Reduce Your Debt And Save Thousands Off Your Commercial Debt!<br /><br />You know what’s best for your business or companies – and debt reduction companies know best how to get your business back on track. Companies across the country have chosen a debt reduction program to effectively structure their commercial debt.<br /><br />Your debts can seem like an insurmountable obligation – and the most frustrating thing with commercial debt is that as hard as you work to succeed, your supplier companies demanding payment – or even larger factors like a bad economy - create bad credit issues that can be completely out of your control.<br /><br />You know you offer one of the best products or services in the marketplace, and all you need to do is reduce your commercial debt, re-establish your credit rating and get your business back on track.<br /><br />Debt reduction companies understand your hard work and best efforts, so you can depend on qualified counselors, CPA and legal pros in debt negotiation and debt reduction to put your debts on the firing block. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-67310972124234797602007-08-31T07:29:00.001-05:002007-08-31T07:29:13.961-05:00Credit Card Processing<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Shane Penrod</font></span></div> <span class="style2">Does your company need credit card processing? It does if you can benefit from the following: <br> <br>Credit Card Processing Enhances Your Professional Status. When customers know that you accept credit payments, they often are more likely to pay more, return often, and tell their friends if the service is good. This is because a company that makes credit payment options available to clients is telling the world that they care about customers and they are professional enough to invest in systems that will enhance the shopping experience for guests. No one likes that disappointed feeling when, after browsing, you find something you want to buy but then fail to find enough cash in your wallet to purchase it. Writing a check may put you over the balance, and you don't want to take time to run to the ATM machine to withdraw the money from savings. When customers can pay with a plastic card, they may show their appreciation by returning again and again to shop your store. <br> <br>Credit Card Processing is Inexpensive. It depends on your current business budget, of course, but you don't have to sink a lot of money into credit card processing equipment. All you need do is get a merchant account services account, buy or lease a credit card processing unit, and you are good to go. Plug it in or take a wireless unit with you on the road to make credit payments easy, fast, and secure. Plan on paying a per-transaction fee of perhaps 25 cents or a low interest monthly rate that may include minimums. Associated expenses may include discount fees, gateway fees, print statement fees, and membership costs. There may be others as well. Overall, however, the benefits of a merchant account outweigh its costs. <br> <br>Credit Card Processing is Flexible. You don't have to be stuck behind the cash register all day to appreciate the advantages of a merchant account's ability to provide credit card processing. You can take a wireless unit from one destination to another to let clients pay at the point of purchase rather than wait for billing. You may want to invest in a pager that will let you provide instant deliveries or prompt responses to customer inquiries, some of which could lead to direct or indirect sales with the option of credit card payments. You can also set up an online Website to accept credit card payments from potentially billions of customers around the world. It's all up to you, of course, as to what you're ready to do in terms of growing your company's sales. You won't need extra staff to manage credit card processing, either. In fact, you may be able to operate some credit card processing systems automatically when you opt for the telephone payment system or the Website option. But you will need to have a staff member available at certain times for questions or troubleshooting issues. <br> <br>Don't get left behind by competitors who already have merchant account services and customers who expect them. Start browsing now to learn more about Credit Card Processing. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-43094689487531745672007-08-30T08:57:00.001-05:002007-08-30T08:57:35.811-05:00Three Rules of Thumb for Mortgage Refinancingby: <font color="#ff6600"><b class="author">Stephen L. Nelson, CPA</b> </font> <p>You might think that deciding to refinance a mortgage requires only a quick comparison of loan interest rates. Unfortunately, that's not really true. Refinancing is trickier than that! Fortunately, three useful rules of thumb can often help you make sense of refinancing opportunities. </p> <p>Rule 1: Don't Ignore Total Interest Costs </p> <p>You really want to use refinancing as a way to reduce the total interest cost you pay. While that sounds simple in principle, it is sometimes difficult to do. The interest costs you pay are a function of the interest rate, the loan balance, and the loan term period. </p> <p>When people refinance, they tend to focus solely on the loan interest rate. But they often don't pay as much attention to the loan term or the loan balance. </p> <p>When you use refinancing—even refinancing at a lower interest rate—to increase your borrowing or to extend the time over which you borrow, you often aren't saving money. </p> <p>Rule 2: Trade Expensive Money for Cheap Money </p> <p>For refinancing to make economic sense, however, you do need to swap higher interest rate debt for lower interest rate debt. This calculation, however, is tricky. To make an apples-to-apples comparison, you must look at the annual percentage rate that will be charged on your new loan—this is the best measure of the new loan's interest rate cost—and then compare this to the loan interest rate on your old loan. </p> <p>You don't want to compare interest rates on the two loans nor do you want to compare annual percentage rates on the two loans. Again, just to make this perfectly clear: You want to compare the loan interest rate on the old loan to the annual percentage rate on the new loan. </p> <p>When the annual percentage rate on the new loan is lower than the loan interest rate on the old loan, then you are truly paying a lower interest rate. </p> <p>Comparing annual percentage rates with loan interest rates seems confusing at first. But note that you would pay only interest on your old or current loan, so that's all you need to look at in terms of its costs. With a new loan, however, you would pay both interest and any origination or closing cost fees. The annual percentage rate wraps the interest rate charges and setup charges, origination charges, and closing cost fees into one interest rate-like number. </p> <p>Rule 3: Don't Lengthen the Repayment Period </p> <p>Be careful that you don't extend the length of time you borrow by continually refinancing. For example, one common rule of thumb states that every time interest rates drop by two percentage points, you should refinance your mortgage. However, there have been times in recent history when following this rule would have had you refinancing your mortgage every few years. This could mean that you would never get your mortgage paid off. If you refinanced every few years, you would suddenly find yourself still 30 years away from having your mortgage paid. </p> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-15792274711635561242007-08-29T09:20:00.001-05:002007-08-29T09:20:59.133-05:00Beware Of Bad Credit Payday Loans<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">Jeff Schuman</font></span></div> <span class="style2">Could bad credit payday loans be the answer consumers with low <br>bank accounts have been looking for? Is there any harm in using <br>these services? Aren't they better than using credit cards or <br>going hungry? <br> <br>Have you seen the commercials? Cute characters promise financial <br>prosperity. Happy, professional individuals appear to regularly <br>visit their corner pay day loan shop as proudly as cashing a <br>check at the bank. Customers at the grocery store all recommend <br>pay day loans as the easy solution for a lack of funds. <br> <br>WHY USE A PAY DAY LOAN? <br> <br>Some individuals reason that paying a bill with borrowed money <br>is better than receiving bad credit marks because of not paying <br>the bill. This is understandable. However, some financial <br>institutions are willing to make the occasional exception if <br>contacted about the situation. Or there may be a small fee, but <br>not a credit report made. <br> <br>Using it for groceries or other items? Consider the true cost <br>before making a decision. Compare the cost of using a pay day <br>(or cash advance) loan to the fees charged for taking a cash <br>advance on your own credit card. Can family help? Often those <br>who are forced to use pay day loans are not able to repay the <br>loan by the next pay check and that can lead to a cycle of debt <br>and stress. <br> <br>WHAT IS THE COST? <br> <br>Several sources, including a consumer report by the FTC (Federal <br>Trade Commission) and the CFA (Consumer Federation of America) <br>state that usual the usual APR is between 350 - 650% with some <br>as high as 780%. <br> <br>A loan of $100 ranges in cost between $15 - $30. If the loan is <br>not repaid by the pay date then it can be renewed with another <br>fee due at each renewal. A loan of $100 can cost $60 in fees <br>after 3 renewals. <br> <br>WHO BENEFITS? <br> <br>Based on the warnings issued by federal and consumer <br>organizations it is clear that using pay day loans or cash <br>advances from these businesses can often lead to more debt and <br>problems. Some sites were reported to automatically roll over <br>the loan and only withdraw the renewal fee on the pay date. <br>Other sites surveyed by the CFA required customers to agree in <br>contract to not participate in class action suits or to file for <br>bankruptcy. <br> <br>For those who are having debt problems it is recommended to seek <br>no- or low-cost credit counseling from a local non-profit <br>organization. These organizations can help with reducing current <br>interest charges and lowering monthly payments. If the problem <br>is budget, you should look to a financial planner who can help <br>you to manage the money you do have and avoid using credit at <br>all. </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-12011891227801768282007-08-28T05:42:00.001-05:002007-08-28T05:42:56.497-05:00Home Equity Loans...Wise or Unwise?<div align="justify"><span class="style2">by: <font color="#fb7014" face="Times New Roman" size="3">David Greene</font></span></div> <span class="style2">Home Equity Loans <br> <br>Over the past few years many Americans have established lines of credit secured by the equity in their homes. For marginal borrowers this can turn out to be highly risky as it exposes these families to the loss of their homes. Lenders tend to quickly change colors from friend to foe in times of financial crisis and need and will "take it away if you can't pay". <br> <br>Prior to mortgaging or refinancing a home one should consider what the families finances would look like if one or more of the family members living in the home lost their job or came down with a serious illness. <br> <br>How long could you keep the home payments current if there was an unfortunate loss of family income? <br> <br>In spite of the dangers of refinancing or taking out a home equity loan there are times when it may in fact be wise. Perhaps credit card debt has gotten out of hand. You can get a home equity loan at much lower rates, pay off the credir card debt, and lower your monthly payments, perhaps as much as by 50%. <br> <br>A word of warning, however. You must not run up your credit card balances once again or you will end up in even worse financial shape than you were to begin with. It would be far safer to avoid temptation by cutting up your credit cards and using a debit card instead. <br> <br>There are other occassions when a home equity loan may be justified. Perhaps you wish to start your own business and are willing and able to take the risk that things may not work out as you plan. Your home equity will likely be the cheapest source of start up capital around. <br> <br>Perhaps you wish to purchase an existing business, one that should earn you a good income for a long time to come. Again your cheapest source of capital would likely be a home equity loan. <br> <br>In general, one should consider a home equity loan when the loan proceeds are used to very likely improve ones financial position. This would be a wise use of the loan proceeds. <br> <br>One should use extreme caution in using a home equity loan to purchase additional consumer goods, say a large expensive flat screen TV set or a new SUV. The worst example of the use of a home equity loan that I know of was a couple who took out a loan in order to go to the Superbowl. Just think of how much that Superbowl trip will really cost over the years as interest payments are added in. What a terrible short sighted financial decision. <br> <br>My advice. Use a home equity loan only to improve your financial position or to raise funds in a true emergency situation. Using a home equity loan to purchase things that will only lose value is a misuse of the loan proceeds that could cost you what is probably your most useful and valuable possession ... your home. <br> </span> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-75855910204862633642007-08-27T06:24:00.001-05:002007-08-27T06:28:06.824-05:00Is Shopping Online Secure?<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">Linda Quinones</span></span></div> <span class="style2"><br />Is shopping online becoming popular and safe enough for you and I to do the vast majority of our shopping on the Internet?<br /><br />As I contemplated, the first thought that came to mind was will they come and will they spend money? Sure people are always curious and some will visit but will they stay long enough to spend some money?<br /><br />Safety was the first concern of those I had spoken to, they were somewhat skeptical and therefore reluctant to make any online purchases. It is our responsibility as online marketers to convince them to about the safety of online shopping.<br /><br />We all know about the convenience of getting on the computer and viewing the sale that retailers are using to entice the shoppers into making a commitment. But are not always as eager to go ahead and complete the purchase online.<br /><br />The internet today is as safe or safer than making purchase in person, I recently read an article where BJ Wholesalers was fined by the Securities and Exchange Commission for not having sufficient security to protect Credit Card users.<br /><br />Most of the buying we do today is pay for by either a credit card or a debit card. So If you think that when you purchase gas and pay for it at the pump with your credit card or debit card that you are making a safe purchase think again.<br /><br />I recently purchase gas at my favorite gas station and paid for it at the pump with my debit card, only to find out two weeks later when the bank call me to question some of purchases that were charge to my debit card.<br /><br />It seems that somebody was making purchases that were very uncharacteristic for me. And the institution where I have been banking for many years was able to detect this and all my money was refunded and a new card issued.<br /><br />I was fortunate in the incident just described, but back to online shopping, most of the retailers that do business online have very good security to protect the buyers. After all they would rather you make your purchases online,<br /><br />Online shopping is much more profitable for the stores and safer and besides no shoplifting takes place on the internet, so the store want to protect this revenue source by making it safe as well as convenient.<br /><br />Another willing partner is the credit card companies themselves they want you and I to continue using the plastic, and are doing all they can to protect the credit card user.<br /><br />In our website we have a page titled credit card fraud protection, with direct links to the major credit card companies website and anti fraud page, so that shoppers can read what the credit card companies are doing to protect them from fraud and identity theft.<br /><br />As more and more people become aware of the security measures being undertaken to protect them, they will avail themselves of the convenience of doing their shopping online and use the time they save for pleasure and family activities.<br /><br />People today are always in a hurry and don't usually have time to wait on long lines for cashier to ring them up, when they can accomplish the same thing without leaving the house. <br /><br />This is more attractive to younger active people would rather play a round of golf or a couple of sets of tennis than fight the maddening crowds. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-48212863923604858122007-08-26T07:05:00.001-05:002007-08-26T07:05:21.076-05:00How Credit Repair Worksby: <font color="#ff6600"><b class="author">John Mussi</b> </font> <p>With personal debt at an all-time high, a number of individuals have found that they have overextended themselves and have become immersed in debt. As their debt grows, they can't help but get more and more behind… and their credit score pays the price. If you are one of the many who have had problems with your credit in the past (or still have problems with it), you may be considering credit repair as a way to get back on track. </p> <p>Before you sign up for a credit repair plan, you should make sure that you understand exactly what is involved in repairing your credit score… while there are a lot of credit repair agencies that are legitimate, there are also some that seek to prey on those who need help and perform services that are both immoral and illegal. </p> <p>What Credit Repair Is </p> <p>Obviously, the goal of credit repair is to improve your credit score and get you back on track financially after past credit problems. A variety of credit repair services exist, providing everything from credit counseling and debt negotiation to debt consolidation loans and budgeting advice. </p> <p>When used properly, credit repair services can not only help you to get caught up with your bills and on the path to a better credit score but they can help you to avoid bankruptcy and set you up to avoid credit problems in the future. </p> <p>Credit repair takes time, however, and should never be viewed as a "quick fix" for your credit. </p> <p>If an offer claims that they can instantly grant you new credit, then it's likely not only bogus but can also get you into legal trouble if you accept it. </p> <p>Common Types of Credit Repair </p> <p>As mentioned above, credit repair can take several different forms. Credit counseling services provide assistance with the budgeting and repayment of your debts, and offer advice on simple ways to improve your credit without additional loans. They also often provide debt negotiation, which is the working out of a settlement with your creditors so that you only have to repay a portion of your original debt within a certain timeframe. </p> <p>Debt consolidation loans are also used for the purposes of credit repair, allowing you to take out a loan in order to pay off outstanding debts and leaving you with a single monthly loan payment instead of several different payments. </p> <p>Budgeting assistance services are also available to help you get control of your spending and personal finances. </p> <p>Avoiding Credit Repair Scams </p> <p>Unfortunately, there will always be unsavory individuals who seek to make money off of those who are in need of assistance. </p> <p>Any credit repair service that promises instant results or that offers to simply create a new credit report for you should be avoided… what they're really creating is a business tax identification number, and any individual who uses one is in danger of being charged with fraud and possibly other charges. </p> <p>Credit repair takes time; if an offer sounds too good to be true, then it likely is. </p> <p>Repairing Your Own Credit </p> <p>Of course, by paying off old debts and establishing and maintaining new lines of credit you can begin the process of credit repair yourself. </p> <p>Request a copy of your credit report and check it for errors, and then focus on clearing the debts that appear as negative reports. </p> <p>It may take years for all of the negative reports to expire, but by preventing new ones while increasing your positive reports your credit score will slowly rise on its own. </p> Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-25663614577090450772007-08-25T07:10:00.000-05:002007-08-25T07:12:50.872-05:00Improving Your Financial Situation With Investments and Business Ideas<div align="justify"><span class="style2">by: <span style="color: rgb(251, 112, 20);font-family:Times New Roman;font-size:100%;" >David Arnold Livingston<br /></span></span>With financial information and virtual business transactions just a click away, people are finding themselves more financially savvy and in the know on how to fatten up their financial portfolios.<br /></div><span class="style2"><br />While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.<br /><br />Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really don’t have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.<br /><br />Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.<br /><br />Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.<br /><br />Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!<br /><br />What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.<br /><br />It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You don’t even have to meet face to face. You just have to learn to communicate through emails and mobile phones.<br /><br />This is not intended to give financial advice and professional advice is suggested before investing. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-71391082741829197202007-08-24T09:44:00.000-05:002007-08-24T11:11:51.151-05:00Don't be a victim of Cybercrime<table height="114" width="99%"><tbody><tr> </tr> <tr> <td align="left" height="19"><div align="justify"><span class="style2">by: <span style="color: rgb(251, 112, 20);font-family:Times New Roman;font-size:100%;" >Matt Sherborne</span></span></div></td> </tr> <tr> <td align="left" height="12"><span class="style2">When you access the Internet through the world wide web it is extremely important that you safe guard your personal information.<br /><br />There are literally thousands of people around the world that make a living exploiting the security loop holes by accessing your personal identity, passwords and bank accounts.<br /><br />There are many more daily who are the victims of these crimes. You have a responsibility as a user of the Internet to take certain precautions to protect yourself from online crime.<br /><br />Internet users who access bank accounts, e-currency accounts or any source of personal information online, should be aware of the following methods used by criminals to convince you to reveal your confidential information.<br /><br />Here are some simple steps to help keep your information secure<br /><br />1. Avoid being a victim of fradulent email requests for personal information<br /><br />This method is called "Phishing" and is a popular way for criminals who are acting as legitimate businesses to steal your personal information. This is usually accomplished by sending you an email with a hyperlink to a fraudulent website made to look like the real one. Once you have entered your information the perpetrator will have access to your account, many times unknown to you.<br /><br />One way to avoid falling victim to this sort of scam is to never provide any personal details in response to an email. Legitimate businesses will never ask you for your password by email. Be aware of suspicious emails from unknown individuals. Delete before opening anything that you think might be harmful.<br /><br />2. Make sure you visit your bank, e-currency or financial website via your Internet browser with the correct website address.<br /><br />3. You should take care to never follow any suspicious hyperlink, url, or open an unknown senders attachment.<br /><br />If you inadvertently reply to a "Phishing" email or respond to what you think could be a fraudulent website, contact your associated financial institution immediately for advice. Do not delay in seeking help. Check your account for any unusual activity.<br /><br />Ways to protect your computer<br /><br />1. It is important to use only a trusted and secure computer to access your Internet banking account. 2. Using publicly shared computers, such as those at Internet cafes, is strongly discouraged.<br /><br />3. It is recommended that you keep your computer up to date with current anti-virus protection, firewall and the latest patches.<br /><br />4. Remember that after you install virus protection it is necessary to update the software so the protection remains current.<br /><br />5. Avoid using the "remember my user name and password" feature when accessing sensitive financial information.<br /><br />6. Make sure not to store your passwords and account information on your computer.<br /><br />7. Use a different password for your bank than you would for your email address.<br /><br />8. Do not use easy to guess passwords, or passwords that closely relate to you. Your birthdate, name or favorite pet make poor passwords.<br /><br />9. Create passwords that have both numbers and letters.<br /><br />10. If you use a wireless network it is important that you never leave your computer unattended.<br /><br />11. Take extra precautions around wireless fidelity (Wi-Fi) hotspots that provide free Internet connections. Coffee shops, Internet cafes, airports and libraries can pose significant security threats. Avoid conducting sensitive business in a Wi-Fi hotspot.<br /><br />Sniffing and Evil Twinning are two methods devious criminals are using to steal confidential data. Sniffing is the act of using a program to search for certain information like passwords and credit card numbers over a Wi-Fi network. Evil twinning mirrors the setting of a Wi-Fi hotspot. When the unsuspecting person uses the evil twinning hotspot the hijacker uses sniffer technology to access anything the victim might be sending.<br /><br />12. When accessing bank accounts online, confirm that your data is encrypted between the bank and your computer by looking for the padlock symbol on the bottom right hand corner of the browser window.<br /><br />13. Close your Internet browser after logging out at the end of each online banking session.<br /><br />14. Beware of any windows that ‘pop-up’ during an online banking session.<br /><br />Most financial institutions have detailed information on their websites on how their customers can protect themselves from Online fraud attempts. Visit their website or contact them via email or telephone for information on how you can protect yourself from online criminals.<br /></span></td></tr></tbody></table>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-74839237583799160162007-08-23T04:58:00.000-05:002007-08-23T05:01:14.206-05:00Are You Wealthy Yet?<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">Al Walker</span></span></div> <span class="style2">Here's a real simple way to become wealthy.<br /><br />Marty and his wife live at home with their 2 children. They own<br />a 3 bedroom house in a middle class neighborhood and try to live<br />within their means. Marty works full time in the Printing<br />Industry, while his wife is in charge of the home and looking<br />after the children. <br /><br />They've accumulated some credit card debt and have 2 years left<br />on a car loan. They try to stay out of debt as much as possible<br />and together they've managed to contribute a total of $32,000 to<br />their own Retirement Fund. It is kept in term deposits receiving<br />5% interest annually. <br /><br />Two years prior, the couple bought an older house that they<br />fixed-up and rent out for $850 a month. After paying the<br />mortgage and taxes $300 is left over each month. This goes into<br />their savings account each month. <br /><br />At Christmas, the family bought themselves a new computer and<br />decided to start a home-based business. Things started out<br />fairly slowly but after 8 months they were receiving a steady<br />check of $400 a month which also goes into their savings<br />account. This part-time business will continue to grow with the<br />effort they dedicate to it.<br /><br />This business also offers them some very lucrative tax savings.<br />By taking advantage of these Tax Strategies they are able to<br />save an additional $300 a month on tax that was normally<br />deducted from Marty's paycheck at work. This monthly income is<br />also added to the couple's savings. <br /><br />Marty has just begun writing an E-book about his "production<br />expertise" at work. His plan is to market this book on the<br />internet for profit <br /><br />Every Sunday the couple takes a drive to stay familiar with the<br />Real Estate market in their area. They're looking for another<br />property, a "handyman's special" to fix-up and rent out. They<br />have saved enough for a down payment and their credit with the<br />bank is well established. <br /><br />The family's total monthly expenses are $2000. Now, here's the<br />question:<br /><br />Does Marty's family have Wealth yet?<br /><br />To answer this question properly you first have to understand<br />exactly what "wealth" means.You achieve wealth when: *Your<br />Passive Income is the same or greater than your Expenses.* So<br />what does this mean?<br /><br />First, what is Passive Income? <br /><br />Passive Income is money that you are paid over and over again<br />for work that you only do once. (This excludes using a gun or<br />finding cash on the street) Some examples of this would be<br />royalties for writing a book or a song, commissions that you<br />receive for sales that others make and interest from bank<br />savings or dividends on stocks/options that you own. <br /><br />Second, what Expenses are we talking about? This one's a little<br />easier to understand. Expenses are the total amount it takes to<br />run your household and your life. This includes, rent, mortgage<br />payments, car insurance, food, credit card and loan payments,<br />etc……… <br /><br />Let's look at Marty's family a little closer…………. Does Marty<br />have any Passive Income? Yes he does. Marty's salary is not<br />considered Passive Income. That's because he has to work 40<br />hours a week just to get the basic amount. If Marty doesn't go<br />to work then he doesn't get paid. His overtime also doesn't<br />count as Passive Income. <br /><br />The interest from their Retirement Fund does though. It's paid<br />to him month after month as long as it's left in that account.<br />So, $32,000 at 5% is $1600 a year. Divided by 12 months equals<br />$133 a month in interest. Ok…..what else? <br /><br />After the mortgage and expenses are paid with the rent money<br />they receive on their rental property they are left with $300<br />every month. This is Passive Income. Just as long as the tenant<br />stays and pays his monthly rent.<br /><br />How bout that $400 from the home-based business and the Tax<br />savings. Is this Passive Income? Well, Marty's wife made sure<br />that she chose a company where she could sign new business<br />accounts and get paid commissions on those accounts over and<br />over again. They've made a 5 year commitment to build this<br />business part-time. So yes, both the $400 and the $300 in Tax<br />Savings would apply as Passive Income. Let's add up Marty's<br />total Passive Income.<br /><br />Interest $166.00 Rental Income $300.00 Home Based<br />Business$400.00 Tax Savings $300.00 Total $1166.00 <br /><br />Not including Marty's salary from work, his family's Passive<br />Income is $1166.00. Not bad. Every month this amount flows into<br />the family's bank account, regardless of anything else they do. <br /><br />We said that Marty's monthly expenses total $2000.00 a month.<br />And we also said………… You have Wealth when: *Your Passive Income<br />is the same or greater than your Expenses.* <br /><br />$2000 Expenses subtract $1166 Passive Income = $834 monthly<br />balance needed to have Wealth. <br /><br />Marty's Expenses are still more than their Passive Income so<br />they're not wealthy just yet. But they're well over half-way<br />there. With this kind of knowledge a family can know exactly<br />where to focus their financial attention. <br /><br />Maybe when Marty writes that ebook he could get some sales and<br />royalties from it. Also the new Real Estate and more work on<br />their Home-based business would certainly help them to attain<br />more Passive Income. Once Marty's Passive Income is more than<br />the family's Expenses then Marty could start to have much more<br />freedom. He may even choose to quit his job and continue<br />developing his Passive Income streams.<br /><br />Take a look at your own finances. What are your monthly<br />expenses? Do you have more Passive Income than your Expenses? If<br />you do Congratulations. You're Wealthy!!! If you don't. It's<br />time to get started and start adding Passive Income from other<br />areas as soon as possible.<br /><br />When you truly understand this principle, you'll be well on your<br />way to becoming wealthy </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-89914264979084513082007-08-22T06:02:00.000-05:002007-08-22T06:04:34.992-05:00A Few Thoughts on Securing a Bad Credit Mortgage Loan<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">Kevin Erickson</span></span></div> <span class="style2">Over spending, the endless nights of partying, eating out and more or less buying everything on a whim, has most likely put a dent in your financial situation and will affect how you live your life for years to come. Clearly, the best option is to dampen your lavish lifestyle sooner than later.<br /><br />Alleviating yourself from huge credit card, as well as other head-spinning debts by assessing your options now, before all those debs start blowing up in your face is one way to right your financial ship. One plausible option is a bad credit mortgage loan, and it's a good first step towards a more financially disciplined lifestyle. In other words, a financial second chance.<br /><br />Unfortunately, many people have a hard time facing the reality of their current financial situation and they foolishly think they can go it alone. Fortunately, today's credit markets have geared many of their programs for people just like you and they are more than happy to assist you with your financial woes by doing anything and everything possible to assist you in securing that much needed mortgage refinance to get you back to financial solvency.<br /><br />First, be honest, how bad is your current financial condition. And remember, you need to face the facts honestly and stop playing games and don't let the possible embarrassment of having other's poking through your financial records deter you. You current financial situation if water over the dam, there's nothing you can do about the past so put it behind you and start making the right decisions from this point forward.<br /><br />Rest-assured the individuals you will be working with are professionals who want nothing more but help you because it's in their financial interest as well since most loan officers work on commission if they can't find a way to help you they don't get paid. The system is built around vested interest and so if it's possible to help you they'll find a way.<br /><br />But before you actually take that big leap in to actually applying for a bad credit mortgage loan for yourself, try your best to actually arm your self with (more than) enough information to actually guide you through the debt restructuring process.<br /><br />First, don't be intimidated by the process, it's really not that complicated. More often than not, people allow themselves to get overwhelmed, so take a deep breath, do a little research on what's available and don't be afraid to ask questions or to simply walk away from a deal that you feel isn't right and go down the street or apply online at another lender.<br /><br />Bad credit mortgage loans are readily available but only if you are willing to get out there and put forth a little effort to dig around and find the right lender with the right program for you. Be will to have your financials thoroughly assessed by your creditors and lenders so they have the information they need to do their job, which is clearly to come up with a bad credit mortgage loan that is well suited to your means and capabilities.<br /><br />Just remember that just because you may qualify for a bad credit mortgage loan, does not necessarily equate with you being off the hook. That's simply the beginning to changing your spending habits and approach to money so that a few years from now you can look back at your current financial situation as learning experience that propelled you to a higher level of financial responsibility. Approach this situation correctly by making the necessary changes and you should also be able to look back and realize that it was the wakeup call you needed and possibly one of the best things that's ever happened to you. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-13437349096150376832007-08-21T06:12:00.001-05:002007-08-21T06:12:49.820-05:00Improving Your Financial Situation With Investments and Business Ideas<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">David Arnold Livingston</span></span></div> <span class="style2">With financial information and virtual business transactions just a click away, people are finding themselves more financially savvy and in the know on how to fatten up their financial portfolios.<br />While most people rely on banks and properties to secure their retirement days, others who are smart enough and worldly enough with the affairs of the green buck opt for more lucrative financing opportunities. They do not just let their money sit idly inside a bank vault and wait for the interest to add up. A few actually roll their money and invest them in the high stakes of stocks, bonds and currency.<br /><br />Stocks can be very risky but if you start small and give yourself time to get the hang of it, you may enjoy it and may even discover that you have the gift of foresight. Watch for stocks that are just on the rise. These are often companies that are very promising. Their value will still be relatively small compared to blue chips so you really don’t have to shell out much. If you want to risk more, you can actually buy blue chips or those stocks that established companies offer to the public. Examples are Microsoft and Dell.<br /><br />Bonds on the other hand may have modest returns but they are probably the best and most secure of financial investments. Bonds come highly recommended and should not be absent in any financial portfolio.<br /><br />Currencies are trickier to deal with as their value are affected by so many forces, local or within the country involved, regional and global. Though banks also offer currencies, most have high exchange rates. Others just buy but they do not sell, choosing to keep the currencies within the financing institution.<br /><br />Debt is perhaps the single worst thing that you can do to damage your financial portfolio. Do not get the wrong idea, debt can be good when used the right way. In fact, successful businessmen have debts too. This is because they have their money tied up in other ventures that have a higher return of investments than the interest of the loans. After all, you cannot make money without having some money to begin with. So, if you feel that you can yield more money using the money that you got from a loan, then by all means, get a loan!<br /><br />What should be avoided are debts that come from credit cards. Credit cards hold the highest interest rates in debts perhaps because the whole debt business is risky. Getting into deep credit card debt can mean paying a lifetime for the interest without even touching the principal. It is important that when you use the credit card, make sure that you pay on time and that you pay for the whole amount. Otherwise, you would find yourself slowly falling into a financial trap.<br /><br />It will be risky but the fastest way you can earn big money is to venture on a business. Even something as small as operating a cafeteria in a factory or school or engage in buying and selling of goods over the Internet, can be a great start. With the advent of technology, it is even easier now than before, not to mention faster, to conduct financing and business transactions. You don’t even have to meet face to face. You just have to learn to communicate through emails and mobile phones.<br /><br />This is not intended to give financial advice and professional advice is suggested before investing. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-849833936671160912007-08-20T15:30:00.000-05:002007-08-20T15:33:04.645-05:00Banking Software: Do You Need It?<div align="justify"><span class="style2">by: <span style="font-family:Times New Roman;font-size:100%;color:#fb7014;">Sandy Baker</span></span></div> <span class="style2">Whether you are considering the purchase of banking software for your personal use or for your business use, there are many reasons to consider this type of software. For one, you will reap many rewards. For another, it will relieve much work from your shoulders. But, do you need a banking software? You probably do not need a banking software if you maintain your checkbook accurately. You probably do not need it if you know how much you are spending on your various expenses each month. You also probably do not need it if you know how much of your income is going towards savings. But, then again, are any of us good at this type of organization?<br /><br />Banking software really can help you manage your everyday and monthly expenses. It can help you to know what is happening in each function of your business as well. Who are you paying and how much are you paying them? What is your income to spending ratio? Are you saving enough? Are you investing well? These things are all things that a banking software can help you to manage.<br /><br />Many banking software options allow you to connect right to the web so that your daily information can be downloaded and managed. No more balancing a check book when you can use the software instead. In fact, it will do that for you.<br /><br />Another nice feature about a banking software is that it will allow you never miss another deadline for bills again. This is a great option because it allows you to know when you need to send out a payment so that you don?t have to deal with missing payments, late fees or even worse, bad credit reporting.<br /><br />Banking software is exceptional when it comes to business use as well. It can organize just about any type of solution that you need it to and allow you to excel in your businesses' overall plans. Consider a banking software for all of your needs. </span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-83971766177910139652007-08-19T07:22:00.000-05:002007-08-19T07:31:48.517-05:0010 Things Every Home Based Business Owner Needsby:<br /><div align="justify"><span class="style2"> <span style="color: rgb(251, 112, 20);font-family:Times New Roman;font-size:100%;" >David A. Bailey, Jr</span></span></div><span class="style2">When you make the decision to earn income from the internet you will need to go through a set up process to be ready for business.<br /><br />Following are the basic steps in setting up for home business success.<br /><br />1. Attitude<br /><br />The key to your business success is your attitude.<br /><br />Treat your business like a business.<br /><br />This is critical whether you are working part-time or full-time. One of my colleagues is a mother who works from home around her family. She has always put her family first whilst at the same time developing her business. She says, "I work part-time, but I have a full-time attitude."<br /><br />Put another way, "If you have a hobby attitude you will have a hobby income, if you have a business attitude you will have a business income."<br /><br />You can be successful working part-time and you can be successful working full-time but it is highly unlikely that you will be successful working in your "spare time".<br /><br />2. Working Environment<br /><br />A space that you can call your own, free from distractions for your scheduled time.<br /><br />A comfortable chair and organized desk.<br /><br />Stationery supplies as required. For example:<br /><br />- pens<br />- highlighters<br />- stapler<br />- hole punch<br />- sticky tape<br />- note book(s)<br />- a simple filing system<br />- ring binders<br />- manilla folders<br />Consider the value of a broadband connection. Your time is valuable and a broadband connection can allow you to get more done in a given time frame.<br /><br />3. Schedule<br /><br />Develop a schedule that works for you, your family (or "significant others") and your business. When you allot a block of time for work then use that time for work. Equally important is to schedule time for your other commitments - family time, self education ( reading, listening and viewing), "health time" (exercise, cooking and eating), and leisure time. During these other times don't work. After all if one of the reasons to work from home is to spend more time with your family then you don't want your working at home time to consume your family time.<br /><br />You are working for yourself and your schedule (by your choice) is your "boss". When you have people calling you or dropping around unexpectedly or maybe out-of-town visitors may want to catch up with you then you need to make a choice. Are you committed to your own business success? What will be your choice in these situations? Only you can decide what is important to you.<br /><br />In a family environment you may need to negotiate with your partner and children to have your business time agreed upon, during which you will not be interrupted. Put this schedule prominently somewhere so all family members are aware of your work schedule.<br /><br />4. Describe Your Business<br /><br />Be able to describe your business concisely; a powerful one or two sentence description that someone can repeat in describing your business to others. A unique and memorable tag line can also be invaluable for promoting your business.<br /><br />5. Know Your Product or Service<br /><br />Once you have selected your product or service to sell, it may or may not be something that you use yourself but you need to know your product intimately. If you are selling ebooks then know the content and its value. If you are selling software then use it know it "inside out". You will develop a reputation of providing quality information and because of your product knowledge you can become the preferred supplier.<br /><br />It is not practical to use certain products (for example a woman may choose to sell man's shoes or vice versa) in which case the seller won't be a product user, however the seller can still know the benefits and features of the product intimately.<br /><br />6. Administration<br /><br />Use good record keeping practices.<br /><br />This may involve a consultation with a tax advisor who can let you know about the optimal way to set up your financial records and what records need to be kept. Your advisor will also recommend record keeping systems and you can find out what software may simplify this aspect of your business. Additionally your obtain advice on the best arrangement for your bank accounts. You will most likely be advised to have a separate bank account.<br /><br />You will also need to keep track of your various logins, usernames and passwords. A very handy little software tool for this is Treepad available as either the free Lite version (without password protection) or the commercial Plus or Biz versions. http://www.treepad.com<br /><br />There are other useful tools for this also from a simple paper notebook to free and commercial password keepers. One popular solution is Roboform that will remember your login details and can automatically fill out your login and other registration forms. http://www.roboform.com<br /><br />7. Computer Protection<br /><br />Your computer is the lifeline to your business dealings and must be protected including the data that is stored.<br /><br />You need a virus scanner, personal firewall, anti-spyware and anti-adware and preferably an email scanner with the ability to delete suspect of spam email from the server before it is downloaded to your computer.<br /><br />Some suggestions are:<br /><br />AVG Anti-Virus: http://www.grisoft.com<br />Spybot S&D: http://www.safer-networking.org<br />Microsoft Anti-Spyware:<br />www.microsoft.com/athome/security/spyware/software/default.mspx<br />Adaware: http://www.lavasoft.com/<br />Mailwasher Email Scanner: http://www.mailwasher.net<br /><br />8. A Domain Name<br /><br />You will most likely need a domain name for your business and one cost effective registrar is GoDaddy, http://www.godaddy.com.<br /><br />9. Payment Processing<br /><br />You will need a way to process credit cards; that may be using services such as:<br /><br />- PayPal https://www.paypal.com<br />- Storm Pay http://www.stormpay.com<br />- 2 Checkout http://www.2checkout.com<br />- Clickbank http://www.clickbank.com or others.<br /><br />This is the most economical way to get started. Once your business picks up you may need to look into your own merchant account for credit card transactions.<br /><br />Consideration may also be given to other forms of online currency such as eGold http://www.egold.com<br /><br />10. Email accounts<br /><br />Once you have your own domain you can use an associated email account. This can further assist in the promotion of your business and promotes a more professional business image.<br /><br />As a final comment on continuing in your internet business, conduct your business ethically, provide extraordinary service and be proud to put your name to the products or services that you are selling and you will be on track to developing a sustainable long term internet business.<br /><br /><br /></span>Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0tag:blogger.com,1999:blog-2705899776305586193.post-4032387276604096352007-08-18T13:25:00.000-05:002007-08-18T13:41:20.218-05:00How to Find the Best Low APR Credit Cardsby: <span style="color: rgb(255, 102, 0);"><b class="author">Morgan Hamilton</b></span><br /> <br />Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.<br /><br />Of course, there is nothing lower in an APR than zero -and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card. Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.<br /><br />Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.<br /> <p align="left">Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants,book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card. </p>Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.Finance Information Harborhttp://www.blogger.com/profile/03166071066074427588noreply@blogger.com0