Posted by admin on Sep 3, 2011 in
Credit Tips
Each year, a great number of consumers battle with credit card debt – among them, young student cardholders. While it is true that mismanagement may lead to trouble, parents can play a big role in helping a teenager get the most from his/her first account. Below are tips on how teens can build good history and avoid debt:
Ask your parent to be your co-signer. The CARD Act requires a co-signer for consumers who are below 21 years old. As a parent, co-signing your child’s account will give you the chance to guide your teenager not only in making the right choice but in managing the account as well.
Sit down with your child and discuss the important factors that make up a good deal. Review the stipulations of the fine print together. Explain how using a credit card can help in building good credit. Share your personal experiences in how you were able to build and maintain a good standing.
Start with a low limit. Since students do not have regular employment, it is best to start with a program that has a low borrowing limit. While young people may see it as a disadvantage, it minimizes the risk of debt build-up. With a lower limit, they would be more conscious about their spending and in case they fail to keep up with their debts, it will be much easier for their co-signer to take over the repayment.
Check your bills. Students who own these plastic cash need to be smart about handling their accounts. Make it a point to review your monthly bills before submitting your payments. By doing so, you can check if there are incorrect or unauthorized charges billed to your account. In case there are, do not hesitate to call up your issuer as all consumers have the right to dispute false charges.
Read more... Tags: Avoid, Card, Credit, Debt, Student, Tips
Posted by admin on Jul 20, 2011 in
Debt Consolidation Debt consolidation involves taking out a single loan in order to pay off lots of other debts. This can simplify your finances and make things much easier for you. Complicated finances and multiple debts are two of the main factors that can lead to bankruptcy.
Benefits of Debt Consolidation
The main benefit of debt consolidation is that is takes much of the stress and confusion out of paying debts. You will only have to manage one payment each month. This helps to ensure that no debt repayments are forgotten about. This could not only lead to additional charges but could also mean that the lender cancels your repayment schedule. This means you would have to pay the debt off in full immediately. If your finances are managed on a fine line already this could tip you over the edge into bankruptcy.
Another key benefit of debt consolidation is that it could save you money. Many debts such as credit cards and motor finance deals can be at high interest rates. This is because theses are short-term loans that are designed to be paid off quickly. This can mean high monthly repayments that can be difficult to afford. When you take out debt consolidation it will be over a longer repayment period. This means you can usually get a lower interest rate deal. You would then be paying less every month for the minimum repayment which can be much easier on your budget.
Choosing Debt Consolidation Loans
Here is some practical basic advice to help you choose the right debt consolidation loan for your circumstances.
* Include all Your Debts – there is no point taking out debt consolidation loans if you don’t include all of your debts. You will just end up juggling your finances again. Make sure you write a complete list of all your debts (credit cards, store cards, personal loans etc) and total up the full amount. This will provide you with the figure you need for your debt consolidation loan.
* Shop Around – many lenders are offering debt consolidation opportunities. Make sure you shop around and compare products. This will help you to get the best deal possible.
* Use Reputable Lenders – there are many different companies out there offering loans these days. Make sure you only use reputable lenders that have a good customer service record. They will operate fair lending policies and follow consumer protection guidelines. Never apply for loans from companies that do not have any trading history or a registered address. * Unsecured vs. Secured Loan – secured loans can be easier to apply for. You will be offsetting the money you borrow against an asset (such as your car or home). This reduces the lenders risk and makes them much more open to applications. However if you do not have any assets then you could opt for an unsecured loan. These can be more difficult to apply for as they do offer more risk for the lender.
Tags: Avoid, Bankruptcy, Consolidation, Could, Debt, Help
Posted by admin on Jun 11, 2010 in
Credit Tips
While having your own home is an important part of your financial picture, too many people make decisions without thinking things over. Many people have what I would like to call a “pie in the sky” view of life. They tend to think that when things are going well it will always be that way; this is not always the case. Making a mistake with your mortgage is a fast way to end up with terrible credit. When some people find that they qualify for a mortgage, they make the mistake of going out and taking on new debts.
But doing this could be a big mistake. There have been cases where people who thought they would get a mortgage went out and got an expensive car, only to find out at the last minute that the mortgage couldn’t be approved. You should never assume that you will get anything until you actually have it. Another thing you will want to avoid is changing your job while you’re in the process of applying for a mortgage. When lenders look at your credit history and employment data, they want to deal with someone who has stable employment and good credit.
If you suddenly change your job while you’re in the middle of setting up a mortgage, this could give your lender the impression that you are not stable. They may then begin to see you as a risk. If you get into a situation where you have to change your job while applying for a mortgage, contact the lender and let them know what you plan to do. When you change your job, the lender wants to make sure you will be able to meet your payment obligations on the house. Between the pre-approval and closing stage, lenders need important information about your finances. Unfortunately, many people are already packing up to move into their new house during this time. Read more...
Tags: Avoid, Credit, Gaining, Mortgage, Tips
Posted by admin on Mar 5, 2010 in
Finance
By devoting extra caution and time, commercial borrowers can avoid serious business opportunity investment financing mistakes. The most obvious benefit will be to reduce the potential for critical commercial loan problems, both now and throughout the life of the business financing terms arranged.
A key factor that distinguishes business opportunity financing from other forms of business financing is the lack of commercial property ownership. Although the transaction will usually involve a long-term lease agreement, the buyer is acquiring a business that does not include real estate in the purchase price.
The two mistakes described in this article are more typical than expected by most commercial borrowers. While we will not be addressing all possible business opportunity financing problems in this article, we will include two of the most severe issues to anticipate and avoid.
Length of Business Financing -
A common mistake when acquiring a business opportunity is to finance the acquisition with business financing that expires within two to five years. One reason for this occurring is the failure to negotiate a longer-term lease, since it is typical for financing terms to expire with the lease.
A viable solution is to insist on a lease that is at least ten years long. This will facilitate business finance terms that can typically be for a ten-year period. One key factor that limits business opportunity financing to a ten-year period is due to the absence of commercial real estate collateral.
Use of Excessive Seller Financing -
Although nominal seller financing (such as 10-20%) can be helpful to a business financing transaction, attempts to finance either entirely or primarily with seller financing are generally inadvisable. There are several different issues which can result in this being a serious mistake. Read more...
Tags: Avoid, Business, Financing, Investment, Mistakes, Opportunity