Category Archives: Finance

Limited Benefit Health Insurance Can Spell Doom For Consumers Finances

Limited Benefit Health Insurance Can Spell Doom For Consumers Finances

Typical thing happens when American families attempt to cut cost during poor economic time. Consumers start looking for low cost options for their health insurance. Without the knowledge base to understand the hear to’s and there fores of a health insurance contract, and some very desperate, shady insurance agents more and more American are falling prey to policies that come up extremely short at claim time.

Look, I’m just like any other tax paying citizen. I want the cheapest health care cost i can find. But here is the difference in me and you. For the last 16 years I have been a licensed Texas health insurance broker, I understand health contracts better than most. I also know that policies exist on the market with massive holes in coverage. Now, how can you, the average consumer, keep from getting burned at claim time? Simple, remember the old saying, if it is to good to be true it probable is and you get what you pay for.

First off, here is the problem. Limited benefit health insurance policies will limit things like the maximum amount each surgery or procedure can cost. Also, things like cancer treatment and any out patient treatment may be either severely limited or not covered at all. Also, you may find these policies come up short on out patient drugs and to some extremes may only pay a portion of your hospital stay.

Now I know most consumers would not knowingly purchase one of these policies so one of two things happened. First, the consumer logged onto a website via an Internet search, found the cheapest plan and hit “apply now”, just assuming they selected a quality product. Second, the consumer possibly received advice form a shady health insurance broker that pushed this product based on the elevated commission these policies pay agents.

Here would be my advice, look for code words like “Saver” and “Right Start”, code words for junk. Also look for things like “Hospital Plan” again, code word for a limited benefit policy. Basically I would advise a consumer to focus on a policy that stated it was a Major Medical plan, these plans traditionally are more in line with your full coverage type policies. i would also research the internal limitations on things like out patient coverage and per occurrence limitations. Just stay away from the limits, you should find something with lifetime maximums of $3 to $5 million.

Another way to protect yourself from these limited benefit policies is to find a experienced, respected agent or broker. Another thing to do is only work with someone that has taken a stand against limited benefit policies, then when you get your Texas health insurance quote you know your getting quality, both your bank account and credit score will thank you!

Student Loan Payoff Procedure

Student Loan Payoff Procedure

As soon as the student loan company learns you have graduated from a university your student loan will come into the repayment status. Generally the first month you are out of college you will be required to make a payment. Most student loans are set as a twenty year loan. The company totals up the interest, the years you will take to pay it off and then provides you with a monthly payoff amount.

Even when you have been with the same student loan company for your college years they consider each year or each semester to be a different loan. While you may make one payment your loans are not consolidated even within this one company. This is important, but we will get back to that later.

You can elect to set up automatic payments on a monthly basis for the repayment amount the company sends you. You can also send a check with your payment stud. Typically you are given a small interest rate deduction for automatic payments.

If you have federal student loans keep in mind that these loans provide a lower interest rate than your private loans. This is essential when it comes to consolidation. You will want to consolidate your loans.

Even if you are making one payment you could be charged interest on more than four loans. In fact one year you may have an interest rate of 6.8 percent, but the next year’s loan was at 7.1 percent. Federal loans do not consolidate private loans; however if you have more than one federal loan you may get these consolidated for one monthly payment and a lower interest rate.

You should keep your federal student loans separate from private loans. The reason for this is because of the extreme difference in interest. Most federal loans are lower than 3 percent. The average private student loan even with consolidation is 6 percent. You will never find a consolidation option with all loans combined than your federal loans.

You will still want to consolidate the private student loans. How this works is that any loans you have within the same company or with other companies will be placed into one loan. You will be given the going interest rate on your loans, and then you will have one monthly payment on the private loans. Keep in mind if you have private and federal loans you will still have two payments, but both loans are consolidated wisely.

Many Advantages of VA (Veterans Administration) Home Loans

Many Advantages of VA (Veterans Administration) Home Loans

The Veterans Administration of the United States of America, under the direction of the Department for Veterans Affairs, is the agency that awards benefits to veterans of the United States military. One of the best benefits available to military personnel, both active and retired, is the VA home loan.

100% Financing For Veterans

The VA home loan provides one hundred percent financing for certain members of the military, both past and present to purchase their home. You qualify for financing if you have been active in the military for 90 days during combat, or 180 days during peacetime for members of the Army, Navy, Air Force, and Marines.

Additionally, if you have served in the National Guard or Army reserve, you may qualify as well. If you are the surviving spouse of a military service person who has either died, is missing in action, or is a prisoner of war, you may qualify for a VA home loan under certain conditions.

Government Guaranteed Loans

The VA home loan is a government guaranteed loan. The government does not put up the funds to purchase your home, but it does guarantee repayment to the lender if you should default. This means that veteran borrowers can save hundreds each month because there will be no need to add mortgage insurance on top of the principle amount owed on your home because the loan bears the government guarantee of repayment.

Many Advantages Yield Huge Savings For Veterans

1) Among the many advantages of obtaining a VA home loan as opposed to traditional funding is that there usually is no down payment required. The VA will most often require no out of pocket expenses whatsoever when approving a veteran for a home purchase. The seller is allowed to pay the closing costs for you on your VA home loan, which makes buying the home you need easier and more affordable.

2) Because the lender assumes a minimal amount of risk when writing VA home loans, the interest rate that you will be charged is nominal. In terms of interest, veterans save thousands of dollars over the life of their VA home loan by going with the VA as opposed to traditional funding sources. Furthermore, buyers with most credit types can be approved for VA home loans, because the Veterans Administration only looks at your past twelve months credit performance.

3) There is no prepayment penalty for VA homeowners who wish to pay out early, usually by selling their home. Your VA guaranteed home loan is also assumable, which means that if you do decide to sell your home, the buyer can assume your mortgage, which can be a big selling point with the low interest that you mortgage will carry.

4) You can choose your loan type when you take out a VA home loan, either fixed or adjustable rate. Many borrowers of VA home loans prefer the predictability of a fixed rate payment, while others go for adjustable rate mortgages because of the ultra low interest that is charged for the first few years. The VA leaves that choice up to you.

5) Worth noting is that if you have a service related disability, you may qualify for a grant to help make your VA home easier to access, according to your handicap. This grant does not have to be repaid and is up to $50,000 for additions such as wheel chair ramps, etc.

6) Many VA home loan servicers are offering their loan products online via user friendly websites. Applying for your VA home loan is easy, and you have the added luxury of completing your application from the comfort of your home.

Government Money Funds

Government Money Funds

I want to talk to you about government money funds because there has never been a better time in history for you to get your share. The fact is the government is spending more money than it has ever done before. It’s really amazing when you look at how many zeros are in the budget this year. A lot of the stimulus spending designed to boost the economy comes in the way of grants and funding to ordinary people. The only difference is that you have to apply for the grants. Most people don’t know anything about grants and don’t know where to apply. That’s why I’m talking to you about government money funds.

The government wants to see people going to school, staying in their homes and taking care of their children. They don’t want to see anyone on the street. If you’re having trouble with your mortgage, there are grants to help you pay it. If you’re trying to go to university, you can get grants to pay your textbooks. If you’re trying to send your children to school, you can help cover the cost of supplies. If you’re a single parent, you can get funds to help you with taking care of your children. There is practically a grant for anything that you could possibly struggle at.

Government money funds are in very low competition now because no one knows about them. The average person doesn’t realize that a huge chunk of that stimulus spending could go directly into their pocket.

Short Term Business Loans – Timely Finance For Your Business Needs

Short Term Business Loans - Timely Finance For Your Business Needs

Every business has to face several ups and downs every now and then. This kind of instability or state of unrest in any company is quiet natural and understandable. Although the money flow gap is a usual occurrence, it is not permanent. These gaps can be filled and the cash flow balanced out easily through a ‘Short-term Business Loan’. This loan is particularly beneficial when your sales cycle is longer than your accounts payable schedule. In fact, it is a good means to escalate the working capital and deal with accounts payable. In short, it ensures timely finance for your commercial needs.

A short-term business loan can be availed for both existing and new business ventures. Following are some of its main features:

1) Its maturation period can vary from as short as 90-120 days to as long as 1-3 years, depending on your need and purpose of applying for it. However, for these short-term finances, the repayment policies of most banks are a little stringent. For instance, if you take out the short-term finance for inventory purposes, you are required to repay the borrowed amount soon after your inventory is sold.

2) As these loans are usually unsecured, they do not require any collateral security, but are issued only if you have a good credit history. The loan-application, therefore, requires proper documents depicting your cash-flow history as well as your payment track record. Some banks do offer these loans to bad credit holders as well, but the interest charged are extremely high and not worth it.

3) The interest rates charged on unsecured mortgages are high, but the best part is that they are usually fixed and hence, do not rise.

4) To get more attractive terms and lower interest rates, you can also opt for a secured loan, which can be acquired against suitable collateral, such as property, home, equipments, or accounts receivable.

5) Before you get in touch with the lender, it is advisable to make a layout of your business plan for which you require funds. A good plan is bound to impress the lender and can fetch you the best deal.

6) This kind of loan should not be confused with business lines of credit. The latter allows you to pay the balance and borrow funds as and when you need them. On the other hand, short-term business loan offers you a fixed, lump sum of money that has to be returned within the stipulated period of time. However, once the repayment is done, you cannot borrow more.

These loans work for the cause of your business. They can help you start a new business or expand an already existing one. In short, such loans are a means of obtaining timely finance for erasing out all the immediate business needs.

Smothered by Bad Credit? Breathe Easier With Home Equity Credit Line

Smothered by Bad Credit? Breathe Easier With Home Equity Credit Line

Lately, have you been feeling as if your bad credit score is making you feel smothered by your bills? Why not take out a home equity line of credit to help you come out from under your financial mess? Online lenders are standing ready to loan you the money you need now, regardless of your poor credit history or blemished credit file.

A home equity line of credit is a revolving credit line that works much like a standard credit card. You can buy the things you need (but can not afford) now, and pay for them later. The difference is that your home equity line of credit, unlike a credit card, is secured by using your home as collateral.

Money to Improve Your Home

Although not a second mortgage, the home equity line of credit can be used to pay for things like home improvements, remodeling, adding another room to your home, education, travel, or more. Many borrowers like to use their home equity lines of credit to do improvements that add value to their homes. In fact, for each dollar that you spend to improve your home or do upgrades, you can expect to double that investment if you ever decide to put your home on the market.

You can also use your bad credit home equity line to pay down bills. If you have lots of credit card or loan payments that you seem to never have enough to catch up with, you can use proceeds from your home equity line of credit to get all your accounts current, or out of collections, if need be.

Because your home equity line of credit will most likely be extended to you at a rate that is much better than rates that you might be paying for credit cards or other loans, you may want to consider paying off some of these debts with your new credit line. Paying off high interest credit cards, for instance, can not only save you money, but also improve the appearance of your credit score by establishing your willingness to pay.

To establish your home equity line of credit, your lender will have a specific formula that is used with each borrower based on their credit score. For example, your lender may be willing to lend you 60% of the appraised value of your home, minus the amount that you have outstanding on your mortgage. This would mean that with a mortgage of $100,000 that you still owe $60,000 on, your credit limit for your home equity line of credit would be 60% of $40,000, or $24,000.

Repaying Your Home Equity Line of Credit

You will have a draw period to use your home equity line of credit, which can be as little as five years or as many as twenty-five. During this period, depending on the terms of your agreement, you might be asked to make minimum monthly payments that are equal to a percentage of the amount you have used of the credit line; or you may be required to pay just the interest on the amount that you have used; or you may be required to pay nothing until the end of the draw period, at which time, you may have several options.

According to your loan agreement, at the end of the draw period you may be required to make a balloon payment of the entire amount you have used on your credit line; or you may be given the option to renew your credit line for a period of a number of years; or you may chose to refinance the principle your have borrowed with another lender.

How Can I Pay Off My Debts in Five Years?

How Can I Pay Off My Debts in Five Years?

Often when you are in debt you feel as though you will never be able to get out of your situation. Every time you get paid your wage is spent on household bills and making repayments towards your debts yet they never seem to be reducing. When your debts reach a level like this you need help to be able to get rid of your outstanding debt and start to enjoy life once again.

There are things that you can do that will enable you to pay off your debt in around five years – so now you’re probably wondering how can I pay off my debts in five years? Deciding to take out an IVA or Individual Voluntary Arrangement is one way that anyone with a large amount of personal debt can find themselves debt free in five years.

An IVA is taken out with an Insolvency Practitioner who will then negotiate with your creditors and arrange for lower monthly repayments on your behalf. You will then pay whoever you have your IVA set up with a monthly payment which is a mutually agreed figure. By paying this on time each month you will find yourself debt free in around five years. Instead of worrying about how can I pay off my debts you can then make regular payments knowing that you will soon be debt free. Anyone who feels that they could benefit from this type of arrangement and stop continually asking the question to yourself “How can I pay off my debts?” speak to an Insolvency Practitioner about and IVA.

Before you know it you could have come to an arrangement and making one low monthly payment which will cover all of your debts and leave you debt free in five years time, so what are you waiting for?

5 Reasons Bankruptcy Might Be the Solution For You

5 Reasons Bankruptcy Might Be the Solution For You

If you are dealing with crushing debt, and you’re tired of having creditors call you day and night, you might be wondering if bankruptcy is a good solution. Here are five reasons why bankruptcy might be the answer you’ve been looking for:

1) Your first priority is your family – you must place your own needs, and those of your family, over those of your creditors. It doesn’t make sense to let creditors push you into paying them if it means your family has to go without.

2) In many cases, bankruptcy will actually improve your credit. That sounds counterintuitive, I know, but consider this: One third of your credit score is based on your debt-to-income ratio, so eliminating your debt gives your score a significant boost. If you have good credit, though, bankruptcy will lower your credit score – but only temporarily. If you establish at least 4 lines of credit after bankruptcy, you should be able to raise your score to the 600s or 700s within a couple of years.

3) The concept of bankruptcy is deeply rooted in history – even back to Biblical times. The Book of Numbers required debt forgiveness every seven years; likewise, cultures throught the centuries have recognized release from debt as an element of a productive society. Even the founding fathers of the United States saw debt forgiveness as important to entrepreneurship and risk-taking – they wrote uniform bankruptcy laws into the United States Constitution!

4) The chances you will regret a bankruptcy filing are next to zero. Bankruptcy lawyers almost never hear a client say that they wish they hadn’t filed – in fact, most people will tell you that it’s the best thing they’ve ever done. Being free from overwhelming debt and nagging creditors is well worth going through the filing process.

5) You will avoid garnishments, leins, and tax levies. It’s a terrible feeling to discover that your wages have been garnished, or that your bank funds have been frozen. Bankruptcy gives you the assurance that this will never happen.

What is a Mortgage Approval?

What is a Mortgage Approval?

Mortgage approvals are required in every state, when you are purchasing or refinance a home. I am located in NJ, so my point of view, naturally, is the NJ mortgage loan approval process. I want to talk about what a mortgage approval really is. I help New Jersey residents obtain mortgage approvals on almost a daily basis, so I have a pretty good idea what I am talking about. When you get a mortgage approval, that ALMOST guarantees that you are getting the NJ mortgage loan you want. An approval is very different from a prequalification. A “prequal” is merely a piece of worthless paper given to you, after your mortgage broker asks you several questions pertaining to your finances. Only a true approval, shows that you can obtain a loan.

Think of mortgage prequalification as the “opinion” of your lender, that you will get approved for the New Jersey mortgage loan that you seek. There is nothing “concrete” about it, however. A mortgage approval is an actually commitment to get the loan you desire. It is ALMOST a guarantee, like I said before. I use the word “almost” because to me, nothing is set in stone until the loan actually closes. In order to actually get an approval, you need to supply your lender with all necessary income documentation, such as W2’s, pay stubs, or 1099 and tax returns if you are self employed. Once an NJ mortgage borrower chooses a home in New Jersey for sale, writes an offer with their Realtor, and does an appraisal on the house, all of that documentation can be forwarded to the lender to start processing your mortgage approval.

A mortgage approval in NJ generally takes bout 2 weeks to obtain, from the time that all the correct documentation reaches the lender’s desk. After the commitment is obtained, it goes over the the borrower’s attorney, if it is a purchase, or is held by the lender, if it is an NJ refinance. the approval outlines all of the loan terms as well, such as the interest rate, total loan amount, and the monthly payment amount. So in short, a mortgage approval is an “official” document that states that you will be getting a mortgage, rather than just a “maybe”.

Balance Transfer Offers

Balance Transfer Offers

The economy today has driven many credit card companies to tighten the reins on new loans and become even stiffer for those who are applying for a new loan. It is not always easy to find a credit card company that will agree to transfer your credit card balance because of the declining economy. You can still find hope because of the fact that credit card companies want to work with their existing clients and need new clients in order to remain in business. The problem with some of the deals that are offered is the fact that the way they figure your finance charges.

When you do discover a company that will finance you at a better rate, lowering your monthly payments and helping you to eliminate your credit card debt quicker it is very advisable for you to transfer your credit card balance. Many people today are working to get their credit card bills lowered or paid off because of the fact that the economy is in such a terrible state. The new stimulus package when it kicks in will be a help for the credit lending institutions and this can be a plus for the consumer. In order to maintain a good credit score it is important that you keep all your bills up to date and eventually paid as resources allow. The average American today is afraid of losing their job and of the problems that go along with a failing economy. The major lending institutions also fear that perhaps in some manner they might go under this is why it is getting harder to get those much needed loan consolidations.