Posted by admin on October 22, 2011 · Leave a Comment
There is increased doubts about the Roth IRA in the minds of people even though the Roth has been around for more than 10 years, says roth-ira.org. People are still pondering over the thought as to whether they should convert their Traditional IRA accounts into a Roth one.
Pessimists claim that the Roth not offering tax deductions is a bad thing and that makes the Traditional IRA more attractive. But let’s face facts, You don’t get tax deductions when you deposit in the Roth right now, but your savings grow tax-free and also, you can withdraw your amount without having to pay tomorrow’s taxes. Read more…
Posted by Kai McCubbin on October 22, 2011 · Leave a Comment
Here is a list of 7 common loan options that people often apply for and provides a little bit of detail on each.
- Business loans:
Business loans can be very useful when one is setting up a new business. This can provide much needed capital and money for start-up costs. Business loans rates and terms are very competitive and it is wise to shop around for the best interest rate. Ensure that you have a detailed Business Plan which incorporates cash flow projections, costs of sales, forecasts, projected income and expenditure and details about the financial viability of your business – these are what the bank manager will need in making a decision whether to provide you with finance.
- Personal loans:
Personal Loans are normally at a higher interest rate than home loan rates and are considered short term loans; however they can assist for an immediate need. Their interest rates however, are normally less that credit card interest, so they can come in very handy to consolidate credit card debt. Personal loans can also be used to consolidate outstanding bills. Again, it is very important to ensure that you meet all repayments in a timely manner.
- Pay Day loans:
Pay Day loans are a very short term fix until you receive your paycheck. The amounts lent are generally small and these are used as a quick stop-gap. Pay Day loans are generally repaid within a very short period of time and normally with your next pay check.
- Home loans
Also known as mortgages, home loans are utilized for buying property, land, houses or apartments, where said property is used as security over the loan. Banks will generally not lend 100% of the property sale price, so you will need to ensure that you have some monies to cover HOA fees, stamp duty fees, legal fees, miscellaneous fees and a deposit if required.
Home loans are normally granted over a 20 to 30 year period. They are different options such as principal and interest or interest only loans. Interest rates may be fixed for a certain period or variable.
As with all loans, one must ensure that one meets the lending criteria and monthly repayments, to avoid any risk of default.
- Car loans
Vehicle loans tend to be short term – 3 or 5 years and the interest rates tend to be higher than that of a home loan. The vehicle is used as the security over that loan and may be repossessed in the event of a default on the loan.
- Credit cards and store cards
Credit cards are probably the highest interest rates and are absolutely the first thing that needs to be repaid out of all that types of loans.
Interest rates can very up to and over 20% per annum. It is one of the easiest forms of credit that anyone can access, but also one of the easiest to impact your credit rating.. It is very important to try to pay the full balance of the card every month, and if this is not possible, then at least more than the minimum payment.
- Refinance
Should multiple loans or credit cards become too difficult to handle, you may wish to consider consolidation of these loans into a single loan at a better interest rate, which is more manageable. A god idea is to use any equity you have in a property to consolidate these other loans or credit cards and therefore have to just pay home loan interest rates.
Posted by Kai McCubbin on October 13, 2011 · Leave a Comment
Last Thursday, many economists seemed confident that the Fed’s consumer credit figures for August, due out the following day, would continue to show rises. Early on Friday morning, Bloomberg Businessweek published the results of a survey of economists, who on average expected borrowing to rise by $8 billion.
Well, we should be used to economists being wrong by now. (Your blogger is fond of the old saying, “Economists were invented to make astrologers look good.”) And, sure enough, when the actual figures for all consumer credit–except loans secured against real estate–were released by the Federal Reserve they showed a drop of $9.5 billion, compared with a rise of $11.9 billion in July.
The Fed doesn’t break out statistics just for auto loans, but rather wraps those up within its “nonrevolving credit” category, which also includes student loans and those for mobile homes, boats, trailers and vacations.
Read more…
Posted by Luca Hannan on October 11, 2011 · Leave a Comment
Ryanair has launched its Ryanair Cash Passport card in the UK and confirmed that all card holders are fully protected and will enjoy huge savings every time they use the card to purchase Ryanair flights. This new card will allow all holders to avoid Ryanair’s £6 administration fee every time they fly Ryanair. This card costs £6 to obtain (through Ryanair.com), but this fee is reimbursed by Ryanair with a £6 flight voucher.
Ryanair corrected the untrue claim made by the UK’s Financial Services Compensation Scheme (FSCS) who wrongly claimed that Ryanair Cash Passport card holders would lose their money in the highly unlikely event that Mastercard’s card issuer goes bust. In such
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