Archive for February, 2010

Bad Credit Car Loans: A Second Chance For Bad Credit

Monday, February 22nd, 2010

Bad Credit Car Loans: A Second Chance For Bad Credit Risks

Newsflash: someone said that you are a lowlife. Not directly, of course. But they said it.

If you’ve ever had a brief period of financial trouble, and couldn’t pay your obligations for any reason, and you had the opportunity to listen to what others said about people in your same situation, you’ve know what people think about people who don’t pay their bills. They are labeled as less than human, with no thought to the individual’s situation.

They are labeled as bums and deadbeats. They are blacklisted as the scum of the earth. Snakes are better than a person who doesnt pay his bills on time. They’re deadbeats. And because they are considered this, and you hear it, might be inclined to put yourself in this same class because of their accusations.

In short: you’ve labeled yourself as a very bad person because of the things that they have said..

You’ve heard that, and you have applied all that talk to yourself. Those around you would never say such things to your face, but when they talk about others that have bad credit, for whatever reason, they always speak about them in a negative light, and you feel something deep inside..

They speak as if nothing bad every happens. That life sometimes takes people down a path they didn’t want to go down. That sometimes, people unknowingly dig financial holes they can’t handle. That sometime people are just stupid, and make stupid mistakes.

Yes, life does happen, and people do stupid things, and people go down paths that they can’t control. And the worst thing about it all is, it could only be for an instant or a season, these side paths. But sadly, in many cases, they have a long-term impact on one’s financial future.

But, even if you’re going through one of these times, it doesn’t have to be that way. With a little persistence, you can find lenders who are ready an willing to give people a second chance.

If you need a car or a truck for transportation, and can’t get financing because of a past mistake, or a series of mistakes, you should consider taking a look at a bad credit car loan. There are many people who automatically think that a bad credit car loan means high, rip off rates, but that doesn’t have to be the case…if you know how to shop for a loan.

You can get a bad credit car loan for very comparable rates with a regular loan. Consider that 6 out 10 people do no shopping for a car loan at a competitive rate. That means only 4 out of 10 people actually took the time to find another offer outside of the one that they got from their bank or the dealer. That’s money that they could have saved, and extra savings that they left on the table when negotiating a new or used car purchase.

Our site has a comprehensive list of the top 10 dealer and financing auto rip offs. You should check it out, as well as our mini-fact page with more information of getting the best deal (even with bad credit) and bad credit car loan lender listings.

Because even so called “bad people” need a break once in a while.

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Preparing For Your Golden Years

Sunday, February 21st, 2010

Planning for your retirement is obviously a good idea. The phrase “the earlier, the better” describes what your policy should be for handling your transition from a harried work life to your relaxed golden years. At best, take twenty four to eighteen months to prepare for this significant change in your life.

* Cleaning Up – Try to pay off any outstanding debts or fiscal responsibilities before moving on, especially those that are hedged against your retirement plan. If you don’t, you’ll probably be paying them out of your pension/savings and that is an incredibly bad idea for a retired individual.

* Doing the Paperwork – A year before you retire would be a good time for you to start doing the necessary paperwork for your retirement. Birth certificates, passports and other identity papers should help smooth your transition to a senior citizen.

* Health Care – Always check with the employee benefits department six months to a year before retirement. Ask them how your health insurance will change once you’re not a member of the company. Depending on the answer, you may have to look around for new or additional insurance for yourself. Also, take into consideration any continuing ailments that you may have. Covering them with health insurance is a good idea, since they may take out a significant part of your retirement income.

* Budgeting For Yourself – Check what your income sources will be after retirement. This can be from your employer – with the company’s own pension plan, Social Security and your own personal savings. After that, make a budget that would fit your approaching financial situation. You really need to do this well in advance, so that you may be able to change it for any required adjustments such as paying for new medical insurance and other expenses that may pop up. A year should give you a large enough margin to prepare. If you’re having trouble balancing it all, a financial advisor is a good investment. Try to find one that has a good solid reputation so as to avoid any problems.

* Making a New Tax Payment Plan – Switching from your salary to your retirement income is a big change but you still have to pay taxes for that change. After retiring, contact your tax advisor on what forms you’ll have to submit and how to set up a good payment plan so that you’ll be able to maximize what you can out of your payout from retiring.

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Are You Suffering From Payment Protection Overload?

Sunday, February 14th, 2010

Critical illness insurance:

Critical illness insurance will cover you in the event of a serious illness such as cancer, coronary artery by-pass surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. Additional conditions covered by this insurance can include aorta graft surgery, benign brain tumour, blindness, coma, deafness, heart valve replacement or repair, loss of limbs, loss of speech, motor neurone disease, paralysis/paraplegia, Parkinsons disease, terminal illness and third degree burns. Not all insurance companies will necessarily cover all of these illnesses, whilst some insurance companies will cover more; it is always worth reading the terms and conditions before you sign anything.

Critical illness insurance policies typically offer a tax-free lump sum if you are diagnosed with one of the above illnesses and meet the conditions outlined in the policy contract. The lump sum is most often used to cover the remainder of the mortgage, although can be spent on home alterations or medical care etc.

Life insurance:

Life insurance is usually taken out if your family or partner is financially dependent on your income. Life insurance can also be purchased as life assurance and in this form, can offer a method of protection cover and savings. However, most people simply use it as a form of financial protection for their mortgage and therefore their family. There are three main types of life insurance: term insurance, whole life insurance and endowment insurance. More information can be found on these forms of life insurance on the Association of British Insurers website, listed in the resources section of this article.

Mortgage life insurance:

Mortgage life insurance is essentially the same as a decreasing (lump-sum) term life insurance policy and is designed to pay out a lump sum upon the death of the policy holder, should it occur during the term of the mortgage. The size of the lump sum will decrease over the term of the life insurance policy, in the line with the outstanding mortgage repayments. E.g. As you pay off your mortgage, the amount of cover will decrease as the need is less significant.

Mortgage protection:

Mortgage protection, also called mortgage payment protection, is a type of insurance that can help protect mortgage payments and associated household costs in the event of unemployment, illness or an accident. Through mortgage payment protection, you can insure your monthly mortgage payment, monthly life premiums and the monthly cost of your buildings and content insurance. Typical mortgage protection cover could include:

* Unemployment and disability insurance cover

* Accident or sickness

* Unemployment only insurance cover

* Disability only insurance cover

Loan payment protection:

Loan payment protection policies are designed to protect the repayments to any loans you may have taken out. They work on a similar basis to mortgage payment protection, but for a wider scope of borrowing. Premiums for loan payment may be greater than those for mortgage protection.

Income protection:

In the event of unemployment, sickness or an accident, income protection insurance offers a limited income. Do make sure you understand the terms of the policy however, as the income that you received through cover may be significantly less than the income you receive through employment.

Private medical insurance:

Private medical insurance is a policy which will provide financial cover for medical treatment in the event of an acute condition. According to the Association of British Insurers, the majority of insurers define an acute condition as a disease, illness or injury that is likely to respond quickly to treatment which aims to return you to the state of health you were in, immediately before suffering the disease, illness or injury, or which leads to your full recovery.

Private medical insurance provides reassurance for people who know that treatment is available promptly should they become ill or injured.

Resources:

http://www.abi.org.uk/ The Association of British Insurers

http://www.moneynet.co.uk/insurance/index.shtml Consumer Insurance Comparison Research

http://www.moneynet.co.uk/home-car-travel-insurance-guide/index.shtml Insurance Guide

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Preparing For The Unexpected

Friday, February 12th, 2010

While many people dont like to talk about it unemployment is something very real that has the potential to be very damaging for the ill prepared. Due to poor planning and denial, many people once unemployed find themselves in a severe financial struggle. Credit card companies are calling them at home, at their old offices, and in some cases contacting them via mail and e-mail. So not only are they being stalked by creditors they are also, more than likely, getting calls of rejection from potential employers. What a way to spend a day. So how can you keep yourself from being in a similar situation? The key to surviving unemployment or an abrupt interruption in employment with out major blemishes on your credit report is setting up an emergency fund, and developing a plan which includes purchasing credit insurance, and contacting your creditors to let them know about your situation.

The first thing that all households should do regardless of whether you have credit cards or not, is to establish an emergency fund to cover your household expenses for up to six months. At a bare minimum this should include the sum totality of your mortgage, car loans, credit cards, and student and other installment loans for six months. By having this emergency fund available in an easily accessible form, like a savings account you can ensure that your bills are still covered for some time while you are seeking employment.

Also when you begin to apply for credit cards, you should look beyond the available credit, interest rate, and perks to the credit insurance. Many companies now offer credit insurance that will cover your monthly payments for a certain period of time while you are unemployed or temporarily disable. While you will still be accruing interest charges on your account during this time, what you are concerned with and paying for is the protection that this insurance provides from negative markings on your credit report from the 30 day, 60 day, and 90 day mark of nonpayment.

In the event that your emergency funds run out or you dont have one, to at least ease the amount of stress placed on you from multiple calls from your credit card companies, you should be proactive by contacting them and informing them of your situation. While this may not help your credit score, it will at least give you peace of mind. Additionally, the companies may be more willing to work with you as you try to get things back together because you have been upfront about your situation rather than avoiding them by screening your calls.

At some point or another you or someone you know may be faced with unemployment. When unemployment raises its ugly head, to ensure that you are left standing, you must have a plan. This plan should consist of developing an emergency fund that includes enough money to cover your living expenses including your mortgage, car, student and other installment loans, and monthly credit card payments for at least six months. In addition to having this money available for a rainy day, you also need to be more forwarding thinking in your future actions. For instance, any time you think about completing an application for a new credit card, you should consider purchasing credit insurance as a back up plan in the event that you are out of work. While you may believe that your skill set will allow you to obtain a new job within a week or so of being released, purchase the insurance any way in case you are wrong and your emergency fund is not fully funded to last for six months.

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Annuities Q&A: Understanding Types Of Annuities

Monday, February 8th, 2010

What types of annuities are available?

There are basically two types of annuities fixed and variable.

A fixed annuity earns an assured interest rate in a definite period of time. If the period of times expires, there will be a new interest rate for the next period.

Variable annuities have more funding options than fixed annuities since their performance depends on the option of investment of the principal and return vary.

What is a tax-deferred annuity?

Tax-deferred annuity allows you to not pay taxes until after you make a withdrawal or until you start receiving an annuity. Having a tax-deferred annuity permits you to collect a bigger amount of money over an extended period of time.

What is the difference between a fixed and variable annuity?

Fixed annuities are investments from government securities and corporate bonds. They are offered a fixed or guaranteed rate usually over a period of one to ten years. So, when you receive payments, the monthly release of funds is set to a fixed amount and already guaranteed. This type of investment is preferred by investors who value safety and stability of their money and for those retirees who want their money to be protected against the possible instabilities of the stock market.

Variable annuities allow you to put your investment into a variety of securities like money market securities and interest accounts offering fixed rates. Stock market performance will decide the annuitys value and the return of your money that you have invested. Though there is a great risk because of unprecedented movement of stocks in the market, some still consider investing in a variable annuity because they are comfortable of fluctuations in the market and get rid of their investment in static position.

What are deferred and immediate annuities?

A deferred annuity is a pay-out plan offered to investors who are willing to receive payments at some later date, commonly at the retirement of the investor. This type of pay-out is advantageous for long-term retirement plans for the following reasons:

Deferred income taxes payment until withdrawal of the money
No limits on yearly annuity contributions
Death benefits are readily available. If the investor dies before he collects his annuity, the beneficiaries get the amount you have put in plus investments earnings.

In an immediate annuity, the investor automatically begins to receive lump sum pay-outs immediately upon investing your money. Payments start usually a month after you have invested into the annuity. This offers financial security in a sense that you will receive income payments for the rest of your life. Also, this annuity permits you to:

Add your pay-outs received in your current income
Pay taxes on the portion of the annuity payments that are considered to be earning

Immediate annuities can be fixed or variable. Fixed immediate annuity payments are attached to the amount that you have contributed, your age, and the existing interest rate at the time you have purchased the annuity. These said payments are already fixed. Variable immediate annuities vary according to the type of investments you purchased.

What is a tax-sheltered annuity?

Tax-sheltered annuity is a retirement savings program limited to public educational institution employees and members of non-profit organizations. Contributions to a tax-sheltered annuity are made by the employers of the participating employee. These are deducted from the participants income payments and sent to the insurance agency or mutual fund guardian elected by the participant.

What is a lifetime annuity?

A lifetime annuity is a type of immediate annuity wherein upon investing you automatically receive guaranteed income payments for the rest of your life. The income you will receive from the lifetime annuity plan will depend on the amount of money you will invest and the existing rates at the time you made the investment.

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Planning to Buy Your Dream

Sunday, February 7th, 2010

Lots of people are dreaming about that little cottage with the white picket fence or that modern apartment with a killer view or that fixer-upper in the country or

The dreams are endless, but the idea is all the same owning your own home is a major milestone in life. Many people fell like they cant ever reach the day they move into their own home, but it is possible for anyone. All it takes is a lot of hard work.

Owning your own home is more than just the dream. There is a reality too it also. You have to consider the many responsibilities that come with it. Dont jump into buying a home before you are ready. Make sure that all of your bases are covered first.

Here are five things you must do before you buy a home.

Create good credit

This doesnt just prepare you for buying a home, but also for all of your life. You should start really concentrating on your credit long before you ever plan to purchase a house. Often, you may need at least a year to get to where you need to be. It could be longer if you have bad credit.

The main things that will help your credit score is paying your bills on time and using your credit wisely. This often means using it very sparingly. A poor credit rating will result in you being turned down or having to accept less beneficial terms higher interest and less money.

Save, save, save

The biggest advantage you can give yourself is as much of a down payment as possible. This shows lenders that you are putting a serious investment into your home.

You should also recognize that you will have additional expenses in owning a home. A savings plan can help you to handle any hidden costs or unexpected expenses.

Make a budget

If you dont already have a budget, you need one. Look at all of your expenses and decide how much you can afford for your new house. Dont just include your mortgage payment, think about your insurance and taxes also. If you are moving further from work, include the difference in commuting expenses. You want a realistic budget. It will tell you how much you can afford.

Dont forget that you will have utility costs and hookup fees, some maintenance, closing costs and moving costs. These are extra expenses that are easy to overlook.

Get help

Ask family members or friends what it is like to buy a home. They can be a great source of information. Everyone has a good story about what can go wrong. You can also ask for recommendations for lenders and realtors.

Become emotionally prepared

Finances arent the only thing that will stress you out. Emotions run high when buying a home. Be prepared and plan ahead. This is the best way to make the experience positive. Dont set your expectations too high. If you are well prepared and ready to adapt to any possible changes, you will be able to buy a home and enjoy the process.

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