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Why are premium notices a source of stress?

03 Dec

Life is never fair. Just when you think you have hit rock bottom and things cannot get any worse, they get worse. You would have thought that a recession would mean premium rates would stay the same. In your dreams, you might have hoped for the rates to fall. After all, there’s massive unemployment – it’s the worst level of unemployment for more than sixty years. With household incomes falling and no job security, this is not the time to find premium rates increasing. Yet when those premium notices drop into your mail boxes, the evidence is there. And it’s not just you. Premiums are going up for most drivers. This is so unfair! All but three states in the union have mandatory liability insurance. For everyone who wants to stay legal on the roads, the price of driving is getting to deterrent levels. First it was the price of gas shooting up like a rocket. Now it’s those premiums! What’s going on?

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What to do when you lose both your job and your health plan

18 Nov

Health insurance has become a hot issue in US politics. With Washington making some progress in healthcare reform, this leaves Americans divided into three camps. Although estimates vary, it seems up to 50 million cannot afford private health insurance. The middle ground is help by those who do earn enough to pay for some private health coverage, and then there’s the comfortable group whose employers provide health coverage. Movement from one camp to another can be painful. It’s the difference between peace of mind and security on the one hand, and struggle and worry on the other. Because it can be a serious shock to a family to lose the health cover provided by an employer, Congress introduced the Consolidated Omnibus Budget Reconciliation Act in 1986.

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What is in the pipeline for reform of health care?

12 Sep

The new Administration is taking over facing an unprecedented economic crisis. The country is already deep in debt and proposes to spend billions more to help prevent a long-lasting recession. Looking overseas, the war in Iraq still has eighteen months to run and there is no end to the war in Afghanistan in sight. So some would argue this is not a good time to start proposing major changes to the health care system. The last time this was tried under the Clinton Administration, the economy was doing well and the momentum for change was lost. Trying it again now is inviting a battle over the legislation when the country would be better served if its leader was focussed on the economic problems. Well, the nay-sayers would be wrong. This is the right time to talk about it again.

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Is it Time to Increase Payments on Your Credit Card?

12 Sep

Over the past year finances have been tight for many of us, and as a result of this more and more of us have been turning to our credit cards to tide us over. With Christmas just over many of us have accrued even larger levels of debt on our credit cards, and the time has now come for us to start making repayments on the balance that we have built up over the festive season.

However, whilst we may have entered into a new year, the situation in terms of the financial climate is no better than last year and for many people is set to get worse. Industry officials have said that lending is set to get more stringent, the economy is set to get worse, and as many of us have already realised unemployment levels are set to soar.

Some officials have said that rising unemployment, coupled with other economic factors, are likely to result in a rising number of us defaulting on our credit card repayments as the year goes on simply because we do not have the cash to keep on top of these payments. With this in mind, it is worth taking the time to consider whether increasing repayments on your credit card balance might be a good idea in order to try and clear the debt whilst you still can.

If you compare 0% balance transfer credit cards there are still offers available up to 16 months in length and switching to a 0% or even a low rate life of balance transfer credit card deal could help to see your debt repaid much quicker as more of your payments will go towards paying off the principle balance.

Some life of balance transfer credit card deals now have no handling fee so there is a less of a cost to move and the low rates last until the balance is repaid in full.

None of us want to dwell on depressing things such as redundancy and the like, but the fact is that in the current climate more and more of us are finding ourselves without an income. By stepping up your repayments now whilst you do have money coming in, and by clearing the balance as quickly as possible, you could benefit in a number of ways. You will reduce the amount of interest that you have to pay on your debt, you will have one less debt to worry about in the event that your income is reduced, and you will have an available credit card to fall back on if things do get tougher.

None of us know what fate has in store for us, and in such an uncertain climate it is best to try and get rid of as much debt as possible as quickly as possible rather than just paying off a little at a time and then realising that you do not have the capacity to continue with repayments.

If you have a good credit rating you can still compare credit cards and get a cheaper rate of interest on your credit card balance.

Reno Charlton, award-winning writer, shares her financial expertise as a contributing columnist for Credit Card Comparison, where you can compare 0% balance transfer credit cards and compare instant decision credit cards.

 
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Balance Transfer Credit Card Features

11 Sep

When you are about to transfer your balance to another credit card lending company you should check out the features that you will be getting in comparison to the features that you will be giving up. It is not always the best move when it comes to making a balance transfer on your credit card. The things you should check out is the cost involved to make the transfer to begin with such as the APR%, the 3% cost on the balance fee, the balance transfer fees etc. After you have made your transfer there are other things that you should know about.

For instance are you still going to be getting those rewards that you have built-up or will you lose the old rewards? After six months will the deal you made change to a new arrangement causing you to pay out more on interest, a yearly membership fee plus other attached charges. All these things need to be examined before you transfer your balance. Your new credit card is now activated will you be comfortable in using it or will it just is a card that you plan on getting paid off as soon as possible.

Often you find out that your new card will charge you higher fees when you start to use it or it might be costly every time you make a late payment. You may find that by sticking to your old company it is cheaper when you start using your card again. The economy is on the upswing, and things are getting much better. You only need to wait until things will go back to normal and once again you might need to start using your credit card.

The nice thing about a balance transfer card is that you’re able to transfer any other balance you may have. As long as you have great credit, you shouldn’t have a hard time getting approved for these type of cards. When you have car loan and any other loans, it’s a great way to pay 0% on your bill for a year or so. Just make sure that when you’re looking for a card, that you look at the fine print because some try to rip you off when it comes to the fees and how you can keep that 0%.

The reason many people resort to a 0% is because they like the idea of not paying interest and who doesn’t? It’s a great way to save money and even at 0%, you’re not giving any money to the banks. The market still does have a great selection of cards out there but you have to do some digging. I’m sure once the market picks back up again, the cards will be back out there at your fingertips. Do your homework and find a card that not only gives you 0% but benefits you every time you swipe it. There are many great ways to take advantage rather than just getting away with a 0% loan.

Find balance transfer credit cards and more of Tom’s work all at FINDlowcards.
 
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Your Personal Finances in a Downturn

11 Sep

From pensions to mortgages and savings to insurance – difficult economic times impacts on every aspect of personal finances. Now, more than ever is the time to keep a close eye on your money and get the best possible advice.

Here are just a few of the points you should be considering:

Your Mortgage

If you have an existing mortgage, the most obvious change that you will have noticed is the rapid fall in interest rates. As the base rate falls, these changes can have a dramatic impact on the amount that you pay. If you have a tracker mortgage, then this is great news as your monthly payments will be falling. If you are paying a tracker mortgage then the option of overpaying your mortgage is worth considering – saving yourself thousands in interest and protecting the equity in your home as house prices continue to fall.

If you have a standard variable rate mortgage, then chances are you will not have seen such a huge change in your monthly mortgage payments as most banks have not passed on the entire fall in interest rates. If you have a fixed rate mortgage deal then you’re out of luck.

If by chance you are looking for a mortgage, or a remortgage, then it’s a good idea to take professional advice as to what type might be the most suitable for you. As interest rates can’t really go much lower, a fixed rate might be a sound idea. Of course, the real problem at the moment is getting a mortgage to begin with. As the banks are much more hesitant to lend, having access to the whole of the market through an independent financial adviser is key.

Your Pension

Pension funds have been hit by falls in the stock markets – affecting the amount of money that you will have in retirement. Depending on how far away from retirement you are, you might consider moving your pension fund or investing in other kinds of investments. Again, professional advice and sound retirement planning is key.

Your Savings and Investments

If you are a saver rather than a borrower, falling interest rates are obviously bad news. It may be worth looking at alternatives to simple savings accounts as a way of maintaining the value of your savings. Investments in gilts, bonds or even stocks and shares could potentially provide you with better returns – although again, your individual circumstances will have a big part to play.

It is also important that you make the most of any ISA allowances you may have, as even though returns may be low, there’s no reason to pay more tax than you have to.

ASU Insurance

Hard economic times can often lead to unexpected company closures or redundancies. Accident, sickness and unemployment insurance (ASU cover) can help ensure that the bills still get paid even if you are made redundant. It’s certainly something worth considering.

Whatever your own personal situation, the more challenging the economy becomes the more attention you need to be paying to your personal finances. You cannot afford to sit back and assume that your pension fund is on track or that your investment ISA is giving you the best possible returns. However, provided you get the best advice and have access to the whole of the market, you can make simple changes to ensure that your personal finances weather this economic storm.

Gareth Flanagan is a financial adviser with Principle First Financial Services, a firm of Chartered Financial Planners in the UK. He specialises in financial planning and financial advice.

 
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Was a Balance Transfer Credit Card the Right Option?

11 Sep

For many years now millions of UK credit card customers have enjoyed moving their debt from one interest free credit card to another. To many people this seems a great idea. You can take advantage of a zero percent offers and use this grace period to pay off as much of the balance as possible without any further interest building up.

Those who used this opportunity to clear, or at least reduce, credit card debt played the game well and will now be benefiting from lower monthly credit expenses. Those who took out the same deals but simply used the offers to stop interest accruing and didn’t pay off the balance may now find their options becoming much more limited.

In the days of easily available credit banks were keen to provide interest free balance transfer offers to attract new customers. Not to be outdone by the competition pretty soon all credit card companies were offering 0% balance transfer credit cards and the chances of an applicant being accepted were incredibly high.

What came to pass may well have severe impacts on the UK economy for many years to come. Many customers soon realised they could play the system to their advantage. People started to move their debit balance from one interest free offer to the next. Known as “rate tarts” the idea was to move your balance to a new 0% offer whenever the current one expired, thus never allowing interest to build up.

While this offered a great way for people to pay off debts more cheaply many people, whether misguided or misinformed, simply let the debts sit on their credit card.

Seeing how frequently credit card customers were switching many providers soon realised credit card profits diminishing as customers simply took advantage of the interest free period and then left.

As credit card companies exist to make money it is no surprise that changes were only just around the corner. Most providers introduced balance transfer fees that required customers to pay a fee of around two or three percent of the balance they wished to transfer in order to benefit from a 0% introductory offer. This effectively ended the era of interest free balance transfer credit cards as the fee that was charged provided the credit card company with their profit and the customer with an expense.

However these fees were still smaller than paying the typical UK credit card rate of more than 15.9% and customers continued to snap up the offers. Again those who used these deals to pay off their debts made a good choice.

Unfortunately a worryingly high proportion of customers still didn’t use the introductory period to reduce their balance. As this group of customers continued to switch frequently fees for balance transfers continued to rise and some providers removed or severely shortened interest free offers.

Then the UK economy was hit by a credit crunch in late 2007, early 2008 plunging the debt industry into chaos. As a result companies became much more reluctant to lend and belt-tightening spread quickly through the financial sector. The days of easy debt were over and 0% balance transfer credit cards almost disappeared.

So, was a balance transfer credit card the right option? Well, if you used the interest free period to reduce your balance and improve your financial outlook then it most definitely was. However, if you simply allowed your debt to stagnate while the 0% period slipped away then definitely not. Sure your debt might not have increased but a great opportunity to massively reduce your debit balance was wasted and now it will be much harder to refinance your debt and the prospect of paying an even higher interest rate is now a very real one.

If you find yourself in the situation of the latter the worst thing you can do is nothing. It is time to face reality, work out the best way to pay off your credit card debts as quickly and cheaply as possible and make sure you actually do it.

Marcus Henry is a contributor to the information website webcomparison.co.uk

 
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Now Realise Your Dreams With Personal Finance

10 Sep

 

The rate on the loan amount availed is the deciding factor while availing such a loan. Various banks like HDFC, Citibank, Standard Chartered, ICICI and scores of others have provided a vast range of competitive options for the consumers in the field of personal financing. And what is even more important, bad credit clients can also get the benefit of personal finance; even though they are charged a bigger rate of interest. Even in the case of choosing a credit card, the person is supposed to lookout for a company which charges the smallest rate of interest. Another effective form of personal finance management is achieved by using the debit card. In this one can spend the amount available in his/her account only. The interest outflow, but, should be at its smallest level to save some money for emergency and other expenditures.

Personal loans in India can be categorized in two ways as secured and unsecured financial schemes. The secured form of finance enables the people to obtain loan against their property at its mortgage value. This item of property acts as collateral benefiting the cause of the borrower. For the people, who do not own any property to put up as a collateral or consider putting the piece of property on the stake as risky, unsecured finance is the other choice available. This gives them freedom from the risk of repossession and auction, which is quiet common in the condition of payment default.

Of late the people’s style has seen a phenomenal rise in the expenditure pattern. Such over-expenditure, well beyond the means of income and the individual’s earning capacity normally results in the debt trap. Most of us,in fact, from the wealthiest to the needy ones, are caught up in the borrowing trend. But the problem gets aggravated due to the paucity of awareness about key aspects of personal finance loan rates.

A sound knowledge and proper application of personal financing interest rates can benefit the people in a great way in managing their finances. Both loan-availing and managing personal finance are the different facets of the same coin. They exist in parallel in a consumers life. The personal finance sector in India has followed the trend of economic boom under a globalised economy. India is accepted as the emerging Asian Tiger among the leading economies of Asia. In the recent years, it has really provided a very tough competition to China by rivaling it in the sphere of business environment. There are many key features and process in the field of personal finance system in India which make it one of the best options for economic growth in the future.

As far as the personal finance interest rates are concerned, Indian Overseas Bank competes with the best by providing such borrowings at the rates ranging between 12 to 13.75 percent for the salaried category. Canara Bank follows closely on the heels with a flat rate of 14 percent on personal loans. Central Bank of India has the interest range between 14 to 15 percent.

Most of the banks have a cluster of varying interest rates, depending upon whether the loan-taker is salaried or self employed. Personal and occupational profiles are very closely followed. Among the salaried class, the top ten companies have smaller rates of interest. Even the employees within each company will have to settle for different rates depending upon their salaries, individual profiles and credit past.

In the case of self-employed professionals like doctors, engineers and chartered accountants they are charged much lower rates of interest in comparison to self-employed non-professional persons who are required to pay a bigger rate of interest due to the assumed risk involved in giving credit to such consumers. So, one ought to negotiate to avail the lowest possible rates for the category and class he/she might fall under.

For more information about personal loans and business loans. Please visit our website: http://www.paisawaisa.com/

 
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New Rules for Personal Finance, Especially for Older Investors

09 Sep

For many people, that’s as far as their knowledge of asset allocation goes, but in today’s market, that’s not far enough. This begs the question, “What does it mean to be diversified?” It used to mean that you let your financial adviser pick out some growth funds, some income funds, and (if you were bold) a sector fund. The rest was kept in bonds. Individual stocks were frowned upon as posing too much risk.

Now we know that many stocks chosen to provide mutual funds’ stellar performances were risky, but somehow no one noticed. In hindsight we’ve learned that the returns on those trusty funds were no better than the Wall Street companies who were fabricating puffed up returns using artificial financial “tools.” And we thought they were safe. Oops.

John C. Bogle of Vanguard still stands by his products, and rightly so. Vanguard Mutual Funds were some of the best for over 30 years. He still holds by the bond vs stocks rule-of-thumb, but his approach probably won’t right the destruction wreaked on America’s retirement accounts. (Like mine for one!)  And the steep curves of the S &P are still making most investors nervous about how to plan their personal finances in the future

For years retirement planning was the result of mapping out a financial plan of how much you would need to live on once you’ve retired, and then figuring out how to pay for it. A combination of social security, savings, IRAs, or other financial investments once added up to a fairly predictable equation. Unfortunately, it’s been disrupted by the unexpected disclosure that our economy is teetering on disaster. Market globalization is moving the power of equity to those countries that have developing economies and the best-educated students. Hmmm. What are we to do?

First, if you can’t beat ‘em, join ‘em. Investing in foreign stocks may seem very un-American, but that’s where the growth is.

Second, think differently about diversification. Do you own real estate? Foreclosures make attractive investments. Do you own precious metals? Are you aware of the new types of equities that are trading on the stock market? Do you take time to learn about global economic trends and how that might help to enhance your retirement goals in the next 5-10 years?

A year ago, I took a look at my personal finances and realized my investments were hardly diversified. My financial adviser had done well when the market went up. Then it bombed and so did all if the mutual funds in my account. I decided to take back control with the help of information provided through Wealth Masters International (a company that helps people to get their personal finances back on track and provides comprehensive knowledge of global trends for asset decision-making). Since last July 2008 I’ve been allocating my assets differently and seeing real results. I’ve also been taking WMI’s recommendations. I’ve done my own financial research, and put together a diversified group of stocks and EFT’s in my portfolio. Again, with some knowledge, the choices are more obvious than you’d think.

So even though there are new rules when it comes to investing, if you keep an eye on diversification and global trends, you’ll be putting the odds in your favor.

Betsy Shulman is a New York City based artist and dedicated network marketer who believes that a person’s dreams are their most important asset. What she loves most about owning a business is helping others make their dreams come true using WMI’s financial education and lifestyle products. Their revolutionary business model and marketing system plus their world-class investment opportunities are the perfect safety net during this economic downturn. http://www.wealthsystemnetwork.com/?site=VDavidA&t=ezine

To leverage your time and income on the Internet you need a marketing system that monetizes your leads while training you for online success. That’s why Betsy uses a system created by Top Earners at WMI that works for any online business and is available through Carbon Copy Pro. www.wealthsystemnetwork.com/?site=Fire&t=ezine

 
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0% Balance Transfer Credit Cards: a Simple Solution for Credit Card Debt

09 Sep

Is this the year you want to get out of debt? For many of us, we’ll answer yes to that question. With the economy tightening on practically a daily basis, many consumers are looking for ways to cut down on expenses and get out of debt.

Unfortunately, saying you want to get out of debt is easier than actually doing it. If you’re serious about ending problems with credit card debt, you’ll need a plan that you can stick to. One way to do this is through a balance transfer credit card. It is made specifically to help you pay off a lingering balance. Here’s how to use a balance transfer credit card to get out of debt.

Study your Situation

In most cases, racking up high credit card balances does not happen overnight. Just like weight gain, debt can grow slowly over a period of time. So if you’re ready to tackle a high credit card balance, you probably need to consider a lifestyle change. Think about how you got to this point, and what you can do in the future to avoid debt problems.

One way to do this is to sit down and take an account of all of your finances. Look at how much you owe. You may want to talk to a financial adviser or debt counselor about your situation. Once you understand what you need to pay, you’re ready to set up a solution for it.

The Balance Transfer Plan

You may have seen advertisements for 0% balance transfer credit cards. These cards let you bring over a balance from any of your credit cards. They then give you a period of time, ranging from six to twelve months or more, to pay off the balance, interest free. This gives you time to focus on paying off the money you owe. Think about it: every payment that you make will go directly toward paying off the debt, rather than interest. Sound like a good plan? It is.

Check the Fine Print

While a balance transfer credit card can be a great option, you’ll want to make sure that it really can help you out. So before you apply for one, check for any hidden fees. Some cards charge a fee for bringing over the balance. This charge may be capped at a certain amount, or it may not be. You’ll want to make sure that you don’t pay a large fee for bringing over the balance, as it would cancel out the savings you’ll receive.

Also check to see what the 0% APR refers to. In most cases, the 0% APR is only applied to the transferred balance. This means that if you use the card for other purchases, a separate, higher interest rate will be applied to them. Your payments will first go toward the new balance, and then the transferred one. To be safe, you’ll want to avoid using the card until the transferred balance is paid off.

Whatever you decide, keep in mind that getting out of debt is a lifestyle change. The 0% balance transfer credit card can be a useful tool to help you climb out of debt. The rest, then, is up to you.

Click Here To Find 0% Balance Transfer Credit Cards. Stephanie Andrews is a contributing editor of the website www.CreditCardCity.com , a credit card directory where you can apply for a new credit card with secure online applications. Visit now to compare all of the best online credit card offers.

 
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