Natalie Buxton

Payday Loans Defined

FrancisP — Tue, 22 Jun 2010 15:48:46 +0000

Money seems to follow Murphy’s Law for most people, that is to say that when you need it the most is when you don’t have enough of it. The fact is though that in these times, most people don’t have any money set aside for emergencies. So when someone needs to go to the hospital or the car needs a major repair, most of us are forced to find a way to borrow money fast.

This usually takes the form of quick loans from family and friends or maybe even cash advances from the company. What it these options are not available? Some might try credit card cash advances, the problem is that this is the most expensive legal way to borrow money.

Good News
A lot of people haven’t actually heard of these, but there are loans called payday loans, also known as same day loans or 24 hour loans. They are called payday loans because they are somewhat like charge cards, you borrow the money and pay back the full sum on you next payday. They are called same day loans or 24 hour loans because that’s how quick the application and approval process is, you could literally get your money on the same day you apply for the loan. Such loans are just the thing for instant emergencies.

Fast Approval
The approval process for payday loans is lightning fast, to do this, the requirements have to be extra easy, and they are. If you are 18 or older, and you have proof of this, as well as proof that you are employed and that you draw a regular salary, you can get a payday loan. How much will depend of course on your salary, and the interest is reasonable. There is no credit check, and no collateral required.

You won’t even need to divulge the reason for the loan. It could be for a medical emergency or to take advantage of a 50% off sale at your favorite clothes store. The point is, you won’t be asked. Next time you are in a pinch, remember, payday loans could be just your ticket out.

Negotiating to Refinance for Jobless People

FrancisP — Tue, 22 Jun 2010 15:25:22 +0000

Modern credit ratings depend on a wide variety of factors such as past performance, current debt, income and several other concepts. Regardless of the individual factors, the entire idea of credit is based off how able to repay a loan a lender determines a borrower to be. If a lender believes that it is unlikely that the borrower will repay the loan, then there is no credit given.

These days a major factor in determining whether or not a person will be able to repay a loan is their work history and current employment situation. If you are currently unemployed then it would stand to reason that a lender would be suspect as to whether you will be able to repay a loan.

If you are looking to refinance a home mortgage loan, your current employment status will be considered, and you will almost definitely be denied a loan of any type. However, what you can do is begin the process and prepare for a time when you return to work. Talk to lenders and explain your situation to them. Perhaps the only thing that stands between you and refinancing is a job, any job. You can provide them with all the other necessary documentation in preparation for a future loan.

Often, being unemployed is a good reason for mortgage refinancing. Since refinancing can lower monthly payments as well as provide you with cash taken from your equity in the home, such a step can help you weather some tough financial times. Current refinancing options allow you to lower your interest rate by up to 2 complete percentage points, which can translate into a monthly payment that is several hundreds of dollars less depending on the amount of your mortgage. This could be the difference between losing the home and being able to hold onto it long enough to get back on your feet. If you have gone through a rather long unemployment streak and have used much of your savings, refinancing can be a way to give you a little padding once you regain employment and help rebuild your reserves.

Unfortunately lenders simply aren’t able to offer you a loan if you are unemployed. But many of them will be willing to work with you so you can get the loan once you find work. Use your unemployment time to find the best deals and research other factors that will help you when you go back to work.

Can You Actually Save on Big Expenses?

FrancisP — Tue, 22 Jun 2010 14:36:58 +0000

A lot of people approach saving money on the theory that every little bit counts. So to save money on a day to day basis, people avoid things like expensive coffee shops, nights out, cable TV pay channels, subscribing to two different newspapers and other micro cost cutting methods on the theory that they will add up and translate to big savings. What do you do then if you have already cut every little cost that you can think of, and you still find yourself overspending? Well, the likelihood is that statistics have the answer.

Table 668 of the U.S. Statistical Abstract, lists the three largest expenses of the typical American household; they are:

1. Housing.

2. Transportation.

3. Food.

These three expenses account for 63% of the expenses of the typical US home. If you really want to make a dent into cutting down on your monthly expenses, you should find ways to bring down these three expenses.

Housing

Housing statistically accounts for 34% of the typical American household’s spending. This includes insurance, utilities and taxes. If this figure looks about right for you, then you are probably paying for your mortgage. If so, then you should really look into refinancing, especially if you have substantial equity on your home. Mortgage rates in the US are at a 50 year low; refinancing could save you hundreds of dollars a month.

Re-evaluate your homeowner’s insurance every year or so. Insurance companies are always trying to outdo each other, make this work for you. Shopping around for the best deals once in a while can help you keep you premiums manageable.

Have your electric company do an energy audit, they offer this service free. They can tell you which appliances you need to ease up on to save electricity every month.

Transportation

The second largest expense of the average American home is transportation (17%). This is inclusive of your fuel consumption, and the cost of maintaining and insuring your car. Carpooling can help. If you own a bigger car, you should consider getting a smaller more fuel efficient model. Take the bus or the train when you can, this will not only bring down you fuel costs, but your insurance premiums as well.

Food

Food accounts for 12% the monthly spending of the American family. There is another glaring statistic that contributes to this number: for every dollar we spend on food, 43 cents is spent eating out. That is a lot of money, and a great potential for savings.

The best way to cut down on eating out is to “cook for the freezer”. Cook more food than needed at meal time, and purposely put food away in the freezer for a later time. The biggest reason for eating out is convenience; we eat out when we are too lazy to cook. Cooking double the amount of food one time is far easier than cooking two separate meals at different times. When there is always food in the freezer that can easily popped into the microwave, the temptation to eat out is greatly reduced.

How Can I Negotiate Refinancing If I’ve Lost My Job?

FrancisP — Mon, 14 Jun 2010 20:07:16 +0000

I Made a Late Payment. Will it Affect My Credit Score?

FrancisP — Fri, 11 Jun 2010 15:41:24 +0000

I Made a Late Payment. Will it Affect My Credit Score?

By: Ryan

Let’s say you made one of those big no-no credit mistakes. You went out of town on vacation for a week, came back home and realized you totally forgot to pay your credit card bill. It happens all of the time.

Chances are you are okay. The worst thing that may happen is you have to pay a late fee, but more than likely the creditor won’t report your one-time late payment to the credit agencies. Most lenders and creditors will not report bad repayment history until you are 90 days late, and if they do not report it, it does not end up on your credit report. Since your credit score is calculated by the information on your credit report, you’re in the clear.

But what if they do and that late payment ends up on your credit report. Sadly, if you have an otherwise good credit score, this will affect you the most. It could knock 100 points off your credit score – ouch! Late payments by people who already have a crummy credit score won’t get dinged nearly as bad.

This may actually not be entirely true though. The way FICO is calculating credit scores going forward now gives some forgiveness to people who made that one-time mistake, but will further penalize people who have a history of not paying their bills.

The best solution to make sure this does not happen is to set up automated bill paying. That way, no matter what, your bills get paid.

If, however, you have a history of making late payments, you’re in a bit more trouble. You’ll wan to get a copy of your credit report and take some of the steps to increase your credit score, which you can do completely on your own.

Money Market Accounts vs. Money Market Mutual Funds

FrancisP — Tue, 08 Jun 2010 18:29:58 +0000

They may sound similar, but money market funds and money market accounts are two rather different things. Money market accounts are conservative investments, earnings are low, but then so is the risk, it all depends on your money market rates. Money market mutual funds on the other hand have a potential for high rewards, but also a real chance of negligible earnings.

How do Money Market Funds Work?

Investing in a money market mutual fund can be risky, but the potential rewards are great as well. The bank or brokerage takes your money, puts it into a pool and invests it in several relatively conservative investments such as T-Bills, municipal or government bonds, or even CDs.

Investments are typically standardized so that the maturity date is concurrent at about 9 months. Share prices are kept as $1.00, or at a fixed price. This is a way of keeping the risk reasonably low, and balancing investments, allowing you to earn scaled interest.

The Pros and Cons of Increased Risks

The result is that money market funds have the potential to earn far greater returns than money market accounts. The flipside is, while it is virtually impossible to lose money with a money market account, there is that chance with money market mutual funds, this will happen if the investments made tanked. Actually loss of money though is not likely, and in the event that you do lose money, it won’t be a lot.

Earn Great Interest with High-Yield Money Market Accounts

FrancisP — Fri, 04 Jun 2010 15:24:55 +0000

If you’re primary criteria for selecting a type of bank account is favorable interest rates, then one of the best options available will always be high-yield money market accounts. The secret to the usually high yields that such accounts produce is variable interest rates. High yield money market accounts can be a complicated investment though, if you don’t know you’re getting into.

Annual Percentage Yield

Your return on investment will be determined by your Annual Percentage Yield (APY). Typically, high yield money market accounts earn one to two percent more than the national average for savings accounts. The APY is variable which means that the bank may change it at any time.

What you’ll need to get a High Yield Account

A minimum balance is a requirement of virtually all high-yield money market accounts. If your account falls below the minimum, your account will not earn interest. Withdrawals and transactions are strongly discouraged, and hefty fees are slapped on such transactions.

Look Online for the best deals

The institutions that offer the best deals on high-yield money market accounts are usually online banks. All transactions are done online or by phone, as most online banks don’t have brick and mortar branches. The secret to the high rates offered by online banks is that they have very low overhead. High-yield money market accounts are FDIC insured so despite the high yields, they are relatively safe investments.

Highest 5 – year CD rate, slides to 3.05%

FrancisP — Thu, 03 Jun 2010 16:13:01 +0000

This makes the 19^th straight week that 5 year CD rates have fallen. One would think that the decline would have to end sometime, but considering that the average 5 year CD rate is hovering around 2.7%, there’s still some room for the top performers to fall.

Currently the highest nationally offered 5 year CD is being offered by Nationwide Bank. Nationwide requires an investment of only $500 to get the account open, making it available to almost any investor. Astoria Federal Savings is also offering the same deal on their 5 year notes.

The lowest rates being offered are 2.3% for a $1000 minimum investment. Allstate and Heritage Banks are offering this palsy rate.

For most of these banks, the current numbers represent record lows in the 5 year CD yields. If that doesn’t give you a warm and fuzzy picture of the banking industry and the economy in general, nothing will. Because the rates of return are so low, investors are unwilling to purchase the CDs, which further exacerbates the banks’ liquidity situation. Given this vicious circle, it’s unlikely that things are going to improve anytime soon in the 5 year CD market.

Some in the banking industry are bashing the latest Federal Reserve policies and blaming them for the low interest rates. At this point, who knows? The financial situation is so messed up that it’s simply a guessing game what will happen next. These days no one has a clue, if they ever did, what ne calamity the market will bring next. One thing does seem sure; 5 year CDs will not be a good investment for the foreseeable future.

Simple Tips for Budgeting Success!!

FrancisP — Thu, 27 May 2010 18:55:01 +0000

After developing spreadsheets in the form of your expenditure history and uploading the numbers into Quicken, you have produced a financial plan. What’s next? The actual effort! You really must continue your financial plan and put your plans into action. This is simpler believed than finished. A year from now you might have forsaken your budget. What can you carry out to evade this?
Here’s how. Be sure you stick to a few of these suggestions below so this doesn’t happen to you.
1. Create reachable objectives – for instance, promise to not dine out all the time. This might be unworkable if you are honest with yourself. Sometimes it is a pleasant break to dine out and experience a relaxing rewarding evening. Practically thinking, do not set yourself up for catastrophe. Lofty or irrational objectives will guarantee your plan’s failure.
2. Budget for expenditures that will not occur on a routine routine – Make certain you give thought to expenditures that take place on one occasion a year, such as festival presents, birthdays, holidays, weddings, car maintenance expenses, etc. Your financial plan can be destroyed by an unforeseen expense. Make a list of these occasions on a calendar and assign a cash figure to them. Place them in the month they are anticipated to take place so you can plan in advance how you’ll pay for them. Repetitive expenditures won’t cause your plan’s collapse. These “one time” or catastrophic revelations will devastate your strategy if not projected.
3. Create a record of your financial plan – Take the time to write down your budget strategy. Recording your plan “in stone” can only result in failure. By no means rely on maintaining a thought in mind to protect your prosperity. Your financial plan ought to be considered on a recurring routine.
4. If you have a bad month or week, don’t quit! – Take into account you have fulfilled your targets for a quarter. Then, for some reason, your budget goals ended up not fulfilled. Maybe you even quit attempting to keep on with your budget! If this happens, don’t just surrender and admit to collapse. We all experience defeat at times. Your budget is a voyage. We all go through unanticipated events. This makes me imagine a famous golfer named Walter Hagen. Prior to each round of golf, he told himself that he would have 4 or 5 terrible shots. During the golf round, if he hit his ball into a bunker, he would tell himself, “There is one of my bad shots that I was expecting”, hit the ball out of the bunker and move on. It didn’t phase him in the slightest since he had understood there could be some poor shots in his round.
5. Adjust your budget over time – This one is important! It can take months or even years to perfect a personal financial plan. When you initially established your budget plans, you probably had to speculate at a few of your figures. A few of these figures were almost certainly not realistic. Your grocery or utility costs may have been underestimated, as an example. If this comes about, evaluate all of the underlying money that was spent in this category to see if your original estimate was unrealistic. If this was the case, refigure the real expense and use this corrected amount. It is this sort of recalculation that is one of the foundations to ensure you can follow your financial plan.
6. Evaluate your financial plan every month – This will give you the opportunity to create periodic adjustments. Designate the first day of the month to forecast or modify your budget. By frequently evaluating your money and comparing it to your financial plan, you can adjust your spending habits. This gives you an opportunity to evaluate parts that exceeded your budget expectations and make the adjustments in your spending habits or your plan. Keeping your plan at heart is the goal. The refrigerator is a wonderful location to keep a copy of your budget. That way every day, several times a day, I would see my financial plan goals sheet. Being conscious or reminded of your plan will help you stay true to your objectives. Visualization is why tip number 3 is vital.
7. Set specific short-term goals – Paying off your credit card expenditures would be an illustration of a short-term objective. If your credit card balances come to $20,000, that will be $10,000 a year. This would equate to quarterly payments of $2,500. This looks like a more practical objective, correct? I feel that I am more likely to do well with all of my plan goals if I split them into short-term sensible stepping stones. Reject all credit card offers This brings us to number eight…
8. Reward yourself – That’s right! When you have accomplished a number of your short-term objectives you should reward yourself. Take the time to “smell the roses” since your budget is really a journey. Remaining within the parameters of your budget shouldn’t be a horrendous process. Not only are you supposed to take the time to enjoy your financial undertakings as you go, but use part of your budget for entertaining things that you take pleasure in. Simply make sure your rewards don’t wind up ruining your budget!
9. Pay yourself first – I’m certain that one of your budget objectives is to save and invest a part of your income. One of the ways to make sure you achieve this is to do what the IRS does with your salary, take it out of your flexible income immediately. By doing this, your cash is saved straight away. Move the funds immediately into a savings or mutual fund account. Many mutual fund companies can setup automatic deductions from your salary. The daily responsibilities we confront can harmfully influence your savings.
10. Attitude is everything – The first thing that comes to mind when taking into consideration a financial plan is limitations and doing without. A diet comes to mind. You know what comes about with most diets? They usually do not last long! Keep in mind, if your budget has too many restrictions, it is not going to be successful either. However, you will be required to control your spending in some areas and this will take certain adjustment in your mind-set. Remind yourself of the importance of your targets when you feel restricted. Consider the sensation of success you feel when you attain your objectives. As time goes on, you find that you don’t want to disappoint yourself by breaking your spending ambitions on a impulsive purchase. Now, I actually get more pleasure knowing that I am realizing my budget ambitions when the notion of an impetuous purchase crosses my mind.
Your financial plan will be a success if you follow these guidelines. You will realize that living inside a plan is not as difficult as you anticipated if you bring about some minimal modifications. This experience is actually satisfying!

T-Bills & Banker’s Acceptance

FrancisP — Thu, 20 May 2010 16:05:14 +0000

Money Market Account Interest. A Money Market savings account is very much similar to a savings account in the sense that you invest cash in the bank and then you get a matching interest depending on the amount that you put in. The only variance is that the bank utilizes your money and loans it to other individuals with a higher interest rate. The interest generated from money markets is compounded each day and paid every month with rates based on the going rate of the bank at the time the transaction was made. Depositors should be mindful about the existing interest rates before putting their money on money market as these money market rates rise and fall over time.

BANKER’S ACCEPTANCE. It is a negotiable instrument or order of payment withdrawn and accepted by a bank. It is similar to a postdated draft from a client to the bank for a sum available throughout a particular time frame, generally six months. Receipt of this draft makes it possible for the bank to trade or sell it in secondary markets. Worldwide trade depends on Banker’s Acceptance. Here’s an illustration of how it works: say there is a trade ongoing between an importer and an exporter and the importer cannot acquire financing from the exporter. The importer may use a Banker’s Acceptance from his bank to consummate dealings in the bank’s behalf; he then makes an arrangement to pay the bank and issues a time draft on the bank. The bank then marks down his check, and offers the funds to the importer but take note that the total is less than the face value of the original draft. The importer uses the said amount to pay the exporter. It is now the bank’s discretion to utilize this draft either to their collection or to resell or rediscount it in the secondary market.

TREASURY BILLS. The most popular market security are T-bills. T-bills are short-term savings and are issued in 3-month, 6-month and one-year time periods. T-bills are traded competitively or non-competitively. Non-competitive means you cannot propose for the amount of security that you will receive other than what is stated at the time of the auction. Competitive bidding, however, gives you a more flexible take for the reason that you can bid higher than the precise returns. If they find your bid too much, they may deny you of the T-bills or they may still carry on with the bid but only present you with a portion of what you bid for.

T-bills are marketable for the reason that they appeal to the broad single investors. They are more reasonable than other money-market savings. T-bills are generally offered in quantities of $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million. T-bills short tenure also make them attractive to traders. You can acquire a T-bill for a 4-week period. But the downside to this is that your funds is unavailable for the 4-week period of time with no opportunity to extract it earlier than maturity as with CDs.

$1000 portions are available for acquisition. Amounts larger than a thousand will not be given and has to be invested in other money market type accounts.