Tuesday, May 21, 2013

The Great Benefits Of Choosing A Career Within Finance

If you enjoy crunching numbers, understand that numbers are what makes the world go around, and choosing to obtain a career in finance is one of the best decisions you will ever make. There are endless career opportunities found in the finance industry with many of these leading to annual salary levels well over $100,000 US ($64,205.50 GBP). Not every job in the finance industry requires you to have a degree; however, with this type of credential, you will find an increase in your employment opportunities as well as an increase in your income.

Finance

Benefit #1: Career Selection

Once you decide to find employment in the finance industry, do not be surprised when you find yourself overwhelmed with employment opportunities. Since every business operates on some type of financial basis, finance careers can be found in every industry. Common titles you will find in the finance industry include the following:
  • Bookkeeper
  • Accountant
  • Credit Specialist
  • Bank Manager
  • Loan Officer

Benefit #2: Continuing Your Education

Once you obtain a career in finance, know that you will have much opportunity to continue your education. In fact, most employers will prefer that you continue your education. Even with a bachelor's degree, you can still go ahead to further your education and obtain a master's degree. In fact, if you prefer, you can even obtain a doctorate degree; however, a master's degree will land you almost any type of executive-level finance position.

Benefit #3: Great Pay

With a degree in finance, you will likely make upwards of $50,000 US ($32,102.75 GBP) a year. Even with no degree, you can still make upwards of $30,000 US ($19,261.65 GBP) a year; this is what makes a career in finance so advantageous. If you are good with numbers, you can obtain a position as a traditional bookkeeper at a small business. Don't ever think that without some fancy degree that you can't land a job in the finance industry. However, on the other hand, don't ever underestimate the value of earning a finance degree.

Benefit #4: Assortment of Specializations

The finance industry is one with many areas of focus. You can use these areas of focus and specialize in them; thus, allowing you to obtain a job that you thoroughly enjoy. For example, if you enjoy working with people and counseling them on their financial choices, you can choose to specialize in financial planning or Tax Consultancy. In the finance industry, you aren't glued to a certain job position. Instead, you can chose something to your liking.

Benefit #5: Room for Growth

When you get a job in the finance industry, you don't need to fret about being tied down to the same job for the rest of your life. Instead, you can look forward to growth. In fact, you can easily work your way up from an entry-level position to that of an executive. With education and experience, anything is possible in the finance industry.

Monday, May 20, 2013

How To Win The Battle Of Credit Card Debt With Credit Card Debt Relief

Are your credit card debts keeping you awake at night? If so you are one of millions of people that are experiencing this same nightmare. Almost everyone has credit card debt in today’s world. The economy is not allowing for people to pay off their debts off every month. When this happens the interest trap begins. The interest will increase your debt by hundreds if not thousands of dollars and makes it almost impossible to get out of debt and get those credit cards paid off.The good news is that there is help to give you the credit card debt relief that you are dreaming of.

Credit Card Debt

Eliminate Your Credit Card Balances

When you get your credit card bill every month you will usually find yourself paying the minimum payment due which is the amount of the interest and maybe a little of the principal amount. There may also be some hidden fees and late charges depending on if you paid your bill on time. You are not alone in this situation. Many people are living off of their credit cards because there is not enough money left at the end of the month for groceries, gas for the car, rent or many other things. This is where you should consider debt consolidation and maybe even get help through a debt consolidation lender.

Consolidate Your Credit Card Debt

When you are considering help through a credit card debt relief program you should consider seeking help through a lender who specializes with debt consolidation. Debt consolidation loans are unsecured loans that can help to pay off your credit cards with one payment and usually a much lower interest rate. This will help to reduce your monthly payments and help you to pay the credit cards off much quicker.

Debt Settlement

There is also a service available to help you consolidate your credit card loans. This is called a debt settlement service. This is where you hire a service to help you negotiate new terms on your credit cards. Most of the time this will help to reduce the total amount owed and will lower your interest rates at the same time. This will help you to get back on the road to a stable financial situation and will also help you to save money every month.

Where To Find Help

With the technology that is available today help is just a click away. Just by searching the Internet you can find hundreds of debt relief companies to help you. Often times you are even able to apply for the help over the telephone or even over the Internet and get answers back almost immediately.

Conclusion

Do not allow your credit card debt to rob you from a good night’s sleep. It is easy to find help and get yourself started on the road to financial freedom. Most of the debt relief companies that are available will give you an offer with no charge. This will show you the best way they can help. Do not be ashamed of your debt get out of it by asking for help.

Payday Lenders Spend Huge Money for Lobbying

Payday lenders continue spending huge amounts for lobbying the legislatures and senators. According to a recent report, the payday loan industry has spent over $4.4 million for the purpose, just during the last legislative session alone. The amount was spent for the purpose of killing some legislation which was put forward by the consumer advocates. The consumer advocates blame the industry for draining the wealth of the lower income groups in Texas.

Payday Loan

Texans for Public Justice’ report says that the USA payday loans industry is still spending a lot of money just for lobbying the Texas senators. As per the report, the payday lenders have already spent over $4.4 million just for this purpose.The industry has almost spent $8.4 million during the last two sessions. This figure shows how ardent the industry is to kill the legislation which come against the industry in the legislature.

These regulations are meant to cap the interest rates of payday loans. Besides interest rates, some other fees are also collected by them, finding loopholes in the laws prescribed by Federal Bank.

Though many states have banned these high-rated loans in their states, Texas has not yet banned them. Besides Texas, nearly 15 other states also have not regulated the payday lenders.

The report is concluded, challenging Joe Straus, the Texas House Speaker. He has received a huge amount of cash, approximately $311,000, from the payday loan lenders and auto title lending industry in the form of campaign contributions. The report asks the Texas House with whom it will stand. Will it stand with the poor Texans who lost their vehicles and homes last year, or will it stand with the payday loans USA industry, which mostly works from outside Texas.

As per the report, last year nearly 35000 Texans lost their vehicles, due to the higher rates of payday loans. It further asks the speaker to answer with whom the house will stand as the house members are given over $1.3 million by the lending industry.

Rod Aycox-headed Select Management Resources has spent the largest amounts to the lobbyists. It is paying up to $485,000 to ten lobbyists.

TPJ has found out that eight former lawmakers and four legislative staff members were registered payday lenders. The report adds that the failure of the Texas House to act against the payday lenders has prompted the cities to come up with their own legislation  If the state senate fails again to implement tough regulations against the industry, the cities will surely have to come up with tougher legislation.

Equity Release Loans Can Lead To A Great Retirement

People are planning for their retirements earlier and earlier these days. This is because the cost of living keeps increasing and they are scared that they will not have enough money once retirement time rolls around. Unfortunately, the income through their pensions is no longer enough to live on. This is the reason why people are looking for a way to supplement their income that is needed for everyday expenses. This is where an equity release loan can help out these individuals in a big way.

Equity Release

What Is An Equity Release Loan

Equity release loans are growing in popularity. With these types of plans a homeowner can become eligible to take a loan against the property of their house. This will help to boost their retirement income personal loans with bad credit would help the borrow to get ahead and these will cost much more in the long run.

How Does This Loan Work

When a person takes an equity release loan the funds from the loan can be distributed as one lump sum payment or over a series of payments throughout several months. The amount of the loan will depend on the property’s value once appraised, the condition of the property and the size of the property. The smaller the size the lesser the amount given however if the size is larger the amount being loaned will be higher. The loan is then repaid back to the lender once the homeowner passes away or the property is sold.

Qualifications

There are a few qualifications that the property and the homeowner must meet in order to be qualified. The first is that the property should be free of a lien holder. This means that the property is owner outright. The applicant that is the owner of the property also needs to meet an age stipulation and he or she must state their age when completing the loan agreement. The most common age restriction is the age of fifty-five. The older the applicant is the better chance for the borrower to be approved.

Why Should I Consider This Option

In today’s market the value of houses is rising once again. Property owners who are planning on using an equity release loan are excited to hear this news. Of course this is also another reason why many of the older people in the community are becoming victims of scams.

As a homeowner if you are looking for a way to help out the amount of income you have every month this is a great way of helping to pay for your retirement. If the house you are trying to loan against is in good condition and the value is appraised high the homeowner will probably get a good return and be able to live comfortably.

Conclusion

When researching your options of an equity release loan you should do plenty of research and ask many questions. There are many people who are just out to scam the elderly and most of the elderly cannot afford this kind of a blow to their finances. A mortgage broker should be able to answer all of the questions that you may have prior to signing the loan agreement.

Sunday, May 19, 2013

Should I Purchase Moving Insurance?

If you are on the move, you might need moving insurance. No matter how good your international moving company is, accidents can still happen. Boxes can get bumped, dropped, or shift. Fragile items can get rattled and break. No amount of precaution can guarantee the safe arrival of your stuff.

Moving Insurance

Moving insurance covers damages to your belongings while you move and relocate. It covers the actual replacement costs of your stuff, and it comes into play when your homeowners' insurance, house insurance, or the moving company's own insurance fails to cover a problem.

If you ever find yourself unfortunately in a moving accident, you will have to make an insurance claim. However, before you do, you need to record everything you can about your stuff on the original inventory sheet. While you have up to nine months after the delivery to make a claim, you want to report the damages as early as possible. Your mover then must acknowledge the claim within thirty days and present a response in 120 days. Please note, you can only claim damages up to the maximum damage liability of your moving company. Any claims above this amount will automatically be denied. So, you need to make sure that you are adequately covered by your moving agreement.

You should note that moving companies do not provide insurance. They only provide valuation. Valuation determines the liability limits stated on your contract or bill of lading. You get it for free with no extra cost but it has no actual relationship with your stuff's true value. However, the valuation is a good approximate when choosing insurance. There are five different types of moving insurance available. Each type offers unique solutions and you need to choose the one that best matches your situation.
  • Declared Value Protection
With this insurance, your stuff is worth its total weight multiplied by a specified amount. Your claim is then based on how much your stuff depreciates.
  • Basic Carrier Liability
This is the liability protection offered by your mover and nothing more.
  • Full Value Protection
This insurance pays for everything the entire loss, repair, and replacement of your stuff. It is for assets that are expensive and difficult to replace.
  • Lump Sum or Assessed Value
For the light stuff, you may go with this one. This insurance only pays a lump sum based on the assessed value of your stuff.
  • Packing Insurance
This insurance cover packaging damages. You get compensated at market value for anything your mover damages while packaging your stuff.

Before choosing insurance, you can lower your stress by choosing a reputable and efficient mover. The choice of mover will fix your liability coverage so choose wisely. You should check your contract for the estimate value of your stuff and to check what procedures you must follow to make a claim. You should then compare the value with your assessed value. If you haven't done so, you can calculate this value from estimating the weights and replacement costs of your stuff. You can then choose the insurance that covers the gap in liability cover.

Thursday, May 9, 2013

Property Development – How To Raise The Finances To Get Started

Property development is one of the most exciting ways of becoming your own boss. Property development is all about buying at the right price, adding value and selling for a profit but all that is easier said than done. However you first need money to make money. Financing your first crack at property development is the hardest as it’s unlikely you have ready access to a large amount of money. In this post I’ll look at how to secure the initial finance to begin developing property.

Mortgage

Calculate the Cost

Apart from the sale price of an existing property or the land to build on you’ll also need money for professional and legal fees associated with the purchase and securing finance, the building work, the mortgage repayments, utilities, labour costs and insurance. Depending how you get the money for the development you may need up to 40% of the total cost at your disposal already. Check out all your options below:

Mortgage Companies

A mortgage is one of the most common ways to finance a first foray into property development. A mortgage differs from other loans by using property, either an existing property or the one you plan to build, as security aka collateral for the money lent. If you fail to repay the loan then the property passes to the lender.
  • A standard mortgage generally requires a large percentage of the total cost upfront i.e. you’ll still have to find around 40% of the money yourself. A good rule of thumb when calculating how much you’ll be able to borrow is to multiple your annual salary by 3.5. Ask yourself if this is enough to cover all your costs? The more secure your own situation i.e. your salary, job security and value of current property, the more likely you are to get a good rate on a mortgage. Lenders like to see evidence that lending to you will be profitable to them which includes your ability to pay back loans. Money Saving Expert has a good guide to understanding credit rating and how you can improve yours.
  • Another type of mortgage, which is less demanding, is a buy-to-let mortgage. When you apply for a buy-to-let loan you must show that your property will generate 125% of your mortgage repayments through rent once the development is complete.
  • The last mortgage type useful for raising cash is a re-mortgage. You can re-mortgage your home in order to free up the ‘equity’ held in your current property. Equity is the difference between the value of your home and the amount it’s already mortgaged for. You can then use this money to finance your development.
When seeking a mortgage it’s imperative to use a mortgage broker. There are two kinds of broker; an independent broker who isn’t affiliated with any mortgage firms and a ‘commission-tied’ broker who will only sell you a package that they will benefit from. Charted accountants can act as independent brokers, providing property investment accounting to help you secure finance at the best rates.

Alternative Finance

  • Friends and family can help you either by providing the start up cash or by acting as a guarantor on a loan. You need to be sure that this person is aware of the risks associated with property development. If something goes wrong they will be worse off than you will be if they’re financially tied to the development.
  • Funding for special interest builds may be available either from your local authority or from a private investor. What deems your build to be of special interest? It should involve innovative materials or methods that may benefit the wider community by making a case for cheaper or more environmentally friendly building practices. Eco homes including strictly standardised ‘passive houses’ are very popular with home owners and investors who view them as the future of housing.
  • High street banks often have fantastic deals on loans or mortgages. As I’ve discussed mortgages already I’ll look here at bank loans that don’t involve mortgaging property. You may get preferential rates if you bank with them already. A loan specifically given for property development is usually quite short term with repayment expected in just a year or two. They can be more difficult to secure for first developers because a good track record of successful previous developments may be necessary.
  • Embarking on a joint venture will mean you share the costs and the responsibility for the project. The ratio of investment and hands on involvement should be agreed by both parties before any arrangement is entered into. Joint ventures always run the risk of your partner letting you down in some way e.g. not pulling their weight or procrastinating on joint decisions.

Risks of Property Development

As I said earlier, while property development is exciting it’s also risky (perhaps one of its appeals for many people). The property market is a volatile sector, made even more so by the rocky economic climate in general. When securing finance from a bank or mortgage company the state of the market and future predictions for the rise or fall in house prices will affect the rate of lending you receive. Your lender will conduct their own research into the current risks and provide better rates when less risk and greater profits are likely.

Property builds or renovations inevitably incur delays for one reason or another which can be filled with risk if your budget lacks elasticity. A tight budget is important but you must have some flexibility for cash sucks like delays. If you don’t have any stretch in the budget you may end up having to give up the project altogether, accepting a loss in profits to avoid total bankruptcy. That said the risk can often pay off. Take time to consider the current property market, find the right development and consider how you can add value. If the conditions are right take the leap!

How To Transfer Your Pension When Moving Abroad

Whether you have reached retirement age and want to move to a new country or you are looking to just work abroad for a few years you will have to deal with transition. The major stumbling block for this is often your pension, the hassle of having to transfer it so that it can be withdrawn abroad or adding to your existing savings is often too much bother for some people and it ends up putting them off their once in a life time move. In this article I will clearly outline the exact steps you need to take in order to transfer it abroad.

Pension

When transferring your pension it is possible you may have to pay tax on the transaction depending on the country you are sending it to and whether they have a qualifying recognised overseas pension scheme (QROPS). These are the qualifying factors of an overseas pension:
  • Must meet the requirements set by UK law
  • Pension scheme must notify HMRC
  • Must broadly mirror the way a UK pension scheme works
  • Lump sum must be payable upon retirement in scheme

Pre-Transfer Checklist

Before going ahead with the transfer of your pension to another country you must complete a checklist, this can be found on the HMRC website. It includes things such as name, date of birth, national insurance number, UK address, phone number, name and address of the QROPS and the country is was set up and is regulated in. After this you must sign a statement saying you agree that if you transfer doesn’t comply with QROPS then you understand that you must pay tax on it. This information must be completed within 60 days of letting the administrator know of your intentions to move.

What taxes do I have to pay?

Presuming that you adhere to the QROPS then the only other taxes you may be liable to pay are if you are transferring a lump sum that would normally be charged tax in the UK, if that is the case then you still have to pay the tax. If you leave the country part of the way through a financial year or you have been self employed/completed a self assessment in the previous five years then you may still be liable to pay tax before leaving.

A pension transfer can be a very complicated process with hidden costs so often it is a good idea to perhaps get in touch with a company that specialise in it. They can offer you advice and advise you how much tax you will have to pay. They are a form of accountants that deal purely in pension transfers.

Author Bio: Sarah Hewitt is a new blogger who blogs about anything and everything. You can contact her via her Twitter page or Google+

Wednesday, May 8, 2013

Getting A Mortgage For A Commercial Property

If you are enthusiastic about expanding your business, you should consider buying a commercial building. You have to make your move when the market prices are attractive. If you plan on taking up a commercial mortgage then you have to be familiar with the process. Here are important steps to follow when getting a mortgage for a commercial property.

Mortgage

Consult your Banker

First you should make an appointment with your banker to discuss this matter in depth. Since real estate matters vary from area to area, it is wise to speak with a mortgage specialist who understands the trend in your area. Moreover, you should find out the purchase price, mortgage interest rates and the down payment.

Locate the Commercial Property to Buy

Finding the best piece of property for purchase is the next vital step. You already have some prospective figures as given by your banker to guide. You can also ask a reputable commercial realtor to help you since he or she understands the market value of most commercial property. A realtor will let you know how flexible the seller is in terms of prices.

Look for a Mortgage Lender

Carry out an extensive research to find the most attractive offer. Don't depend entirely on your banker's opinion. However, you should not overlook your banker's advice since local banks are worth considering and quite competitive. Compare rates offered by several lenders dealing with commercial mortgages. Evaluate the amount of loan you will receive depending on the commercial property you have chosen. On the other hand, consider the structure and terms of the mortgage they are offering.

Make an offer on the Commercial Property

The reason why you need to choose you lender first before making an offer is that your offer becomes highly attractive. This allows you to negotiate further. Negotiations are important for both the seller and buyer to ensure you both benefit from the sale. Matters decided upon during negotiations should be made official through signing a contract.

Make a Follow Up

After signing the contract, you have to keep on checking with your mortgage lender on a weekly basis for a start. Obviously, some days will pass by without any updates but you will be able to know about delays or extra materials needed in advance.

Close of your Commercial Mortgage

You ought to celebrate the closing of the deal. It is now official that you are a commercial property investor. This may be the beginning of successful commercial mortgages in your name. Most people cannot different between commercial property mortgages and residential ones, here are some notable differences.

Commercial mortgages have a high down payment as compared to home mortgages. This is because the risk involved in commercial mortgages is higher, the lender normally wants the borrower to make some payment as a form of equity.

Mortgages for commercial property usually have a high interest rate and is shorter termed than mortgages for residential homes. Banks are ready to offer reasonable interest rates on home loans because their capital investment can easily be recovered through the sale of mortgage loans in secondary market.

Commercial mortgages are focused on actual property and the flow of cash as compared to residential loans. When shopping for commercial property mortgages be ready to give details about utility payments, the type of maintenance required and cash flow related questions.

Managing a Mortgage on a Property Being Used For Student Accommodation

A lot of people have started investing in properties for rental income. Investing in a property for rental purpose is a very good way to make additional income. While you can always rent your property to families and business people, the trend for student letting is also on the rise. Letting your accommodation to students can prove to be a steady source of income, especially if you hold a property nearby institutes and learning centres.

Mortgage

But if you have bought a property on mortgage, then managing it can be a difficult task. You need students who can stay and pay rents on time without much hassle. Failure to obtain rents on time can create financial problems as the burden of loan instalments will start affecting your budget. Therefore, it is vital to choose renters who are capable of paying rents on time. Let's take a look at some tips that you can use to maintain your mortgage property you bought to let out.

Get in Contact With the Letting Agent: Not many people realize, but a student lettings agent can ensure that you get consistent flow of income from your rental property. Hiring a letting agent will ensure that your property is never vacant. Since it's a mortgage property, it is important that the property is occupied by some or the other tenant always. This will allow you to strike a balance between your loan and budget. A letting agent will help you get the best potential return on your investment. Make sure you hire a specialist letting agent who is well aware of the target market and majorly deals in student letting. Your agent will do anything to get the right people to rent your property.

Dealing with the everyday issues: With a property let out to students, you'll have to undergo a lot of challenges. Although the profit in letting your property to students is high as compared to families, maintenance can be a bit of an issue. This is due to their careless attitude towards cleanliness and maintenance. You must make sure that you get a contract signed by the tenants mentioning everything clearly. The date of the rent, the cost of maintenance and repair, electricity bills etc. All the terms and conditions should be clearly stated before signing the agreement. You should be aware of the activities taking place on your property to avoid any kind of future complications.

Make sure you do a bit of market research while finding a letting agent. You can ask around for recommendations or use internet to gather testimonials of people who have used the services of the student lettings company you are considering. This is the best way to find a professional and efficient letting agent who can take care of your property and make sources for constant income from your buy-to-let property. It is a good idea to put your investment in the hands of professionals to get the maximum returns. This will even help you get rid of your mortgage in a short period of time.

Why You Should Avoid Log Book Loans

In these tough recession times, many of us find ourselves short of cash sometimes. An annual bill comes through, or something breaks and needs to be repaired. If your monthly pay only covers you normal outgoings with little left over it can be difficult to manage these unexpected expenses.

Loans

In recent years we’ve seen the market flooded with so called payday lenders offering people fast cash with few questions asked. The risks are well publicised and regulators are starting to take notice of these companies (just this morning an ad has been removed from UK TV for suggesting that payday loans are a good way to fund a better lifestyle).

However a less publicised but equally risky source of instant cash is increasing in popularity and it’s good for you to understand what it is and why you should avoid it.

A log book loan is a short term loan which is secured against your car. You hand over the log book to the lender in return for cash, so they effectively own the car while you’re making repayments. You can still drive the vehicle but as you don’t have the log book in your possession you are exposed to risks.

As you have handed ownership over to the lender you are in a vulnerable position. If you are involved in a crash, or if the car is stolen, the lender will still expect you to repay the money they’ve lent to you, even though you no longer have a car. And because they hold the log book it could be difficult for you to claim insurance.

Additionally, many lenders are not very sympathetic or ethical when it comes to repossessions. The car is effectively their property so they can repossess when they like. There have been stories of people missing one repayment and having their car taken away.

It is the repayments themselves, though, which are one of the biggest problems with log book loans. Like with payday loans, you will most likely find yourself being charged a very high rate of interest. It might seem like a good deal to suddenly get a couple of grand in cash and repay around £60 a week, but you will end up paying maybe triple what you originally borrowed, or more. Also, if you miss even one payment you will quickly find the interest spiralling out of control.

Log book loans are not covered by the same levels of protection as other types of credit so if things go wrong you don’t have many rights. The contracts are often deliberately confusing, so what might seem like a straightforward loan is actually quite complicated and designed to get the most money possible out of you.

When it comes to cars and finance you need to be careful because you could have your means of transport taken away from you, and still have repayments to make, leaving you in debt and with no car.

Monday, May 6, 2013

Payday Loan Rates More Attractive Than Bank Fees

Backing the payday loans industry, a new study reported that now the payday loan rates are more attractive than they were ever before. This statement was found in a staff report of New York Federal Reserve Bank.

Payday Loan

Payday loan industry has often been facing various controversies, especially related to its higher rates of interest. Now the new report has really backed the industry.

The report by New York Federal Reserve Bank Staff reveals that payday loan rates are more attractive than the rates of some banks and other financiers.

The fees levied on the customers by some financial institutions are really higher than the actual rates of payday loans. The late payment fees for credit cards remain a best example.

The fees charged for a bounced check of default payment of some bills, etc. is also higher. Compared to these rates, payday loans are offered at lower rates.

This will be clear to you when you go through the following figures. If the normal APR for a bounced check is 100 percent, the late payment fees can go up to 700 percent.

The charges levied on the customers by the utility companies for reconnection are still higher. In most of the occasions, this rate is as high as 1300 percent APR.

The study has concluded that the payday loans rates are in most cases are more attractive than the bank fees. The study says that it really beat the bank rates.

The report adds that this kind of cash advance loans can be highly useful and handy in times of emergencies, despite their higher interest rates. Anyone can successfully deal with emergency situations, using this kind of short term loans.

Due to the higher interest rates, they are to be used in a very responsible manner. Otherwise the customers are sure to fall into deep troubles.

Now there are many articles are available on the net. These articles provide the customers a good option to compare the various schemes and interest rates of different lenders.

Additionally these articles on payday loans also tell you how to apply for payday loans. Since all these facilities are available, it is easier for the customers to select the best lender other than waiting for some to appear after clicking on the ‘APPLY NOW’ button.

More interestingly this facility is offered to all the customers of payday loans at free of cost. This makes the customers analyze and compare the lenders.

Friday, May 3, 2013

5 Things To Know Before Using A Payday Loan Company

The recent news of short term cash lender Wonga’s security failings has put ‘payday’ loan companies in the spotlight once again. Wonga, who are one of the largest lenders of this kind, have previously enjoyed quite a good reputation, standing out within the industry for their open, fair deals and boasted an ‘ethical’ approach in an otherwise ethically ambiguous sea of legal loan sharks. Mystery surrounds these companies though, here I’ll look at 5 things everyone should know about payday loans:

Payday Loan

Loans are fast but why and how?

The paperwork for same day online payday loans is simple and checks are minimal. However it is these benefits that allow fraudsters to get loans under other people’s names so easily. This should not necessarily be deterrent to making an application of your own though as the incidents of fraud at Wonga seem to have had little to do with whether you’ve ever had a loan from them. If you’re caught short you can have funds transferred to you instantly, solving your financial problems far more quickly than any other means could do. The danger here is that you may not think through all the repercussions of taking out and paying back the loan before you’ve applied and received the cash. The responsibility for this is entirely on you but if you’re desperate for money quickly there is a greater risk of pushing any cons to back of your mind.

You can get a loan even with a poor credit rating

One of the greatest advantages for anyone struggling to get a loan from a more traditional lender such as a bank is that even if your credit rating is poor or nonexistent that short term cash loans are available through lenders of this kind. Another advantage is that a short term loan can also be an effective method of boosting your credit rating as you’ll prove your ability to pay off a loan. However a subprime card may be a better, more reliable and less risky way to work on your credit rating. These are credit cards issued to customers with poor credit by specialist lenders. These have low limits and high interest but are a more long term solution to money shortages and repayments are more flexible.

A payday loan is cheaper than an unauthorised overdraft

A lot is said about the expense of payday loans but in fact if your only other option is to enter an unauthorised overdraft on your bank account then it is less expensive and harmful to request a sameday loan. To set up an ‘arranged’ overdraft which is fairly cheap you have to ask your bank who must be satisfied with your credit rating. If they’re unsatisfied you won’t be granted the overdraft. The amounts charged for an unauthorised overdraft from your bank reflect the fact that you’ve either bypassed or failed these checks and should be penalised for taking an unapproved loan. However as mentioned above payday lenders don’t require credit checks and despite their high APRs they can still be cheaper than the fines issued by your bank.

You must pay back quickly

The idea behind a payday loan is exactly as it sounds; a loan until payday. This should never be treated as a longer term loan and you should not attempt to borrow more than you can afford. Your latest payslip is usually required for an application but is not used to limit the amount you borrow. In addition it is possible, though not advisable, to take out a second loan from a different payday lender at the exact same time, thus far exceeding your future wage very quickly. However the limit on the period you can borrow for does have the advantage of putting an end to mounting interest costs.

You can make money from a payday loan

Some users of payday loans don’t need the money at all; they’re exploiting the rates for new users and the ‘introduce a friend’ incentives to actually make money. Many of these sameday online lenders wave the transmission fee (which is usually charged in addition to your loan) for new customers. What’s more they offer you money to refer your friends and family to the site. If you take the loan for just one day and pay it off without any extra fees then you can come out on top. As with any dealings you have with fast loan deals you need to read all the small print to make sure you will come away with more than you put in.

Equity Release Can Help You Release Tax-Free Cash

Equity release can help you release tax-free cash from your property for you to spend as you wish, with typically no monthly repayments to make, and also equity release is available to homeowners who are aged 55 or over.
Equity Release

Here are some ways of how equity release can assist you:

Home improvements

One of the main reasons to release equity among Age Partnership's clients is to create improvements to the home, such as building an extension, and conservatory, or having a new kitchen fitted. What this does is makes equity release predominantly appealing, as the money that you are spending is directly affecting the value of your property.

Clearing your mortgage

I’ve come to notice that for the majority of people, mortgage repayments stand for their most important monthly outgoing. Even if, like most people, your house is now worth much more than it was when you bought it, there's a chance that you are still making repayments every month. Visualize the type of result it would have on your disposable income if these payments were no more. Many people are now choosing to release equity from the property to make this so, clearing their mortgage and benefiting from additional disposable income each month.

Financial peace of mind

Releasing equity in your property can help you to achieve financial security and peace of mind during your retirement years. These years are supposed to be a time of enjoyment; a time to do all those things for which you were unable to find the time whilst you were working to pay the bills or raising the family. But for all too many people, the pensions into which they've paid throughout their adult lives are not sufficient to allow for many luxuries. That's where equity release could help.

Mitigating inheritance tax

Over recent year’s house prices have elevated quite rapidly, increasingly people are now finding that their estates will fall within the grasp of the Government's treasury department when they sooner or later pass away. In actual fact, any person who passes away leaving an estate worth in excess of £285,000 will be subject to inheritance tax.

Helping family members

You should know that as much as you might think retirement years are stress free and relaxing they’re not at all, with inadequate pensions and the effortlessness with which we can get hold of credit, too much people waste their retirement distressing about how to pay off bills or loans from a limited income. For a lot of these individuals, equity release may well be the answer. There’s no reason why you have to have to scrape around, paying off one debt with another, when the regular proprietor is now in ownership of a home worth in excess of £150,349?

There are many companies that let you compare different types of equity release so that you can gain fuller understanding of each product before you commit. Thank you for using your time to read the article it means a lot.