How Are Finance Charges Calculated
September 30, 2009
Whether you are shopping for a new credit card or wondering about the one that you may already have, knowing how to calculate the finance charge applied to that card is important. First, however, it is equally important to know what finance charges really are.
A credit card finance charge is the amount of money that you pay to the credit card company in order to use their credit. This is not the same as the purchase amount balance. The purchase amount balance is the dollar amount of the purchases that you made using the card. If you pay off the purchase amount balance within the stated amount of time that the company allows, you will have no finance charges applied to the amount. It is when you carry over your balance that finance charges are triggered and added to your account.
Finance charges are calculated using the amount of your outstanding balance and APR. The APR is the Annual Percentage Rate and all credit cards use them to figure finance charges. It is important for consumers to understand that the ARP can vary from one company to the next, and it can even vary within the same company. It is for this reason that consumers should always look for the companies with the lowest APR’s. This will save you money in the long run.
There are several ways that credit card companies can calculate the finance charges that they apply to consumer credit. Many people do not realize it but the method that is used can make a difference in the amount of money that you will have to pay. Here are some of the methods that credit card companies use to figure finance charges on your outstanding balance:
They can calculate using one billing cycle or two billing cycles.
They can use the adjusted balance, previous balance, or the average daily balance.
They can exclude or include new purchases in the balance.
You will normally find that you have a lower finance charge when the company uses what is known as one-cycle billing and uses the average daily balance method which excludes new purchases. Much of this, however, depends on the balance and the time of the month that you make purchases and payments.
The next lower finance charge method is the adjusted balance, followed by the previous balance method. You can see which method the company is using by reading the bill that you receive. This information is usually contained on the back side.
It is also important that you understand that some companies will have a minimum finance charge system. When a credit card company uses this system you will be charged that set amount even if your calculated finance charge is less than that amount.
Of particular importance to some credit card holders are the cash advance programs that come with some cards. Consumers should be very careful when using credit cards for cash advances. Many companies that offer cash advances treat those advances differently than they do purchases. Before you use your credit card for a cash advance, make sure you look for the details of how you will be charged for that advance.
You will certainly want to know what the APR is for cash advances. Keep in mind that this may be significantly higher than the APR that is used for purchases. You should also investigate the fees that may be applied to the transaction. Fees are in addition to the finance charge that you will have to pay.
Lastly, find out how your payments will be credited. Some companies will apply your payments to your purchases first and then to any advances in cash that you have taken.
Use your credit card wisely and keep track of your finance charges and you will enjoy your credit more fully and avoid some of the pitfalls that many consumers experience.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Bank Charges and Best Credit Cards
Smart Investment Options For Your Retirement
September 27, 2009
Saving money and then watching it grow is an exciting thing but this requires knowing the right means of investing. In addition to a standard savings account, people invest with IRAs, stocks, bonds, real estate, businesses, 401K programs, and so on. The good news is that when it comes to investing, you have many excellent options from which to choose. Obviously, you want to choose the option that will make the most out of your hard-earned money.
Although people invest for different reasons, the number one reason is for retirement. Knowing how hard it would be to live off Social Security, people, especially those from the Baby Boomer era, are taking investing seriously, and they should. When you consider the low income for retirees, along with inflation, trying to live a decent life would be a challenge. Unfortunately, millions of people now live at or below poverty level because they did not plan for their retirement.
One of the most popular forms used for investing is the stock market. If you choose the right stock and the right equations, you can do very well. However, with the stock market, you need to remember that you are depending on market performance. In other words, if the stock market were ever to plummet as it did before, you could lose everything. For this reason, while the stock market is one option for investing, there are others with fewer risks.
For starters, there is a 401K and IRA. With this, you might think about contributing to an IRA account, based off funds from your company’s 401K plan. With a 401K, most companies will match funds to a certain point. Then, once you have achieved a set level, you would become eligible for the highest matching possible, allowing you to contribute to an IRA. When looking at an IRA, we recommend you choose one that does not penalize you for taking money out. Although the goal is to leave the money in, you could be faced with an emergency in which you would need to withdraw some funds. Therefore, a Roth IRA would be the ideal solution.
Investing can also be done by diversifying your mutual funds. Once you have invested your money in a standard index fund, you would need to look at various markets and industries of interest. With this, compare the mutual funds that concentrate on different aspects of the market. The bottom line is that if you use your mutual funds for investing in various market segments, you get the advantage of large trends while eliminating the risk with other types of investments.
You will also find a number of online investing companies that will allow you to buy stock for as little as $4. These programs are convenient and if done right, can be beneficial. The key in this case is not to become too “trade happy”, meaning you should not trade too often. For the most back on your money with online investing, we suggest you commit to following up on your stocks no more than once a week. Keep in mind that other types of investing include corporate bonds, insider trading, and 529 funds, which is a great way to save for your child’s future college.
Grant Segall writes for the investment and money matters website Investentry.com
Some Down To Earth Property Investment Advice
September 24, 2009
Many times people are lured in by advertising which suggests they can become rich through property investment by attending free real estate “education” seminars. More often that not these events turn out to be selling events for investment property in far away locations. Some of the other problems with these events include failure to disclose commissions, the promoter having relationships with the actual properties being sold or proposed and as a result misrepresenting the investment.
Below are some real down to earth tips about investment property transactions. However you must remember that these transactions rarely go as efficiently as you would like them to. The process is usually much more complex and also keep in mind that every property investment is unique, because of factors like location, market conditions and many others.
Assuming the Loan
Assumption allows you to save for property upkeep. If you get an assumption you have to pay 1% of the total loan value for assuming the loan and your finances need to be approved by the lender. What’s even better is that the financial institution knows the property. Moreover, on long-term loans, you don’t have to start the amortization process immediately. By picking up where the previous owner left off, a higher percentage of the monthly payment can be used for amortization, rather than interest. This way, you can build equity faster than if you got a new loan instead.
Trust Deed Financing
There are situations when the lender may not allow you to assume the loan or the seller already owns the property. In this case, the seller can use a trust deed, allowing you to make a lower down payment and setting more flexible terms. If the situation allows you to follow this bit of property investment advice, you can benefit from a lower transaction costs and you have the chance to for lower interest costs as well.
Contract Financing
The seller can entwine new and old loans. You usually have to ask the loan-holders permission for an assumption. You also have to thoroughly examine the acceleration clause and check if wrap financing is possible. Contract financing allows the original loan with a low interest to stay in place, while new financing from the seller is added on.
This property investment advice is useful only for those people who have some extra money they could use to buy a new loan in case the original one is called. Collection companies can be beneficial to those involved.
For more great investment related articles and resources check out http://investmentinformer.info
Top 10 Ways to Reduce Your Debt
September 22, 2009
You may be in debt for reasons totally out of your control but it is totally up to you to fix it. So it is critical to make a plan for getting yourself out of debt. But before we make this plan, we need to understand some underlying truths. The first truth is that there are no “free lunches.” Companies who claim they can help you get out of debt and are “non-profit” should be scrutinized carefully if not avoided altogether.
These companies claim to be non-profit but you would be foolish to think that they are doing it for free. The second truth is that, at least in the United States anyways, there is no such thing as debtor’s prison. However, keep in mind that you can go to prison for non-payment of child support or taxes. A third truth is that you cannot “draw blood from a turnip” as I was told growing up. If you are in a situation where you do not have the money to pay then you don’t have the money to pay. You can’t steal it as that will only complicate your problems. By considering these truths, it will help to eliminate your worries and help you to avoid chasing after solutions that will only sink you deeper. Worrying about your debt will not solve your problem and there is no one else that can fix your debt problem other than you.
So, keeping these truths in the back of your mind, it’s time to come up with a plan for reducing your debt. Here are 10 ways you can start:
1. Stop charging on your credit cards. If you have to use a credit card then avoid taking cash advances from ATMs. Cash advances on credit cards have the highest interest rates.
2. Try to increase your income in order to make larger payments on your debt. This might mean moonlighting or taking a second job on the side (the internet is full of additional income opportunities) or having a garage sale.
3. Reduce your expenses. Do you really need all of those premium cable channels? Do you need a bigger second car or do you even need a second car?
4. Liquidate assets. Analyze this carefully but sometimes you have assets such as stock that can be sold even at a loss in order to pay off high-interest credit card debt.
5. Come up with a budget. This is the simplest yet most overlooked strategy to reducing your debt.
6. Try to keep your expenses fixed. Avoid any type of variable expense if possible. This makes it easier to create a budget.
7. Bring your own lunch to work. Try to avoid eating out for lunch or at least minimize it.
8. Transfer high-interest credit cards to a low-interest credit card if you can.
9. Look for things you can do yourself instead of hiring someone. For example, men might be able to invest in some barber clippers and try cutting their own hair. You might be mechanically-inclined and be able to make your own minor auto repairs (such as changing belts or replacing headlights).
10. Look for ways to cut your utility costs. If you have a fireplace in your home, you can actually save money in the winter by burning more fires. For those who live in desert climates, you can landscape your yard with desert flowers and shrubs and virtually eliminate the need for lawn watering.
And there are many more tips that can be added to this list. The overall goal of this list is to cut your expenditures and increase your income and savings. Unless you achieve this overall goal, you are bound to remain in debt forever.
For more resources on managing your debt visit: http://www.debtconsolidatecenter.com/
The Basic Truth about Selling Homes in Victoria
September 19, 2009
Simply treat your home as an investment and not as a place where you bond with your family and spend your spare time with them. Your emotion should not be a factor in selling your home; if not, this will certainly be a hindrance.
In Victoria, most of the properties are being sold through real estate agents. Unlike in other states, you have to take a lot of effort just to advertise your home and please the buyers to take it.
However, you must try to consider several factors when getting an agent. And take note that is must be taken prior to your engagement with the buyer. Consider the risks if you will just get somebody who is not an expert on the matter, maybe you will just be hoodwinked.
Take note of these essential reminders:
First, it is important that you are certain and must be fully informed about the terms and conditions on which the agent is to be retained as stated in the agency agreement.
Second, identify whether you are referring to a sole agency, an auction or a general authority to sell. The basis for selling your home will also have variation depending on what condition you have chosen
Third, this is the most complicated part, the commission sharing. Be well-informed about the manner on how it is being calculated. If it is possible to negotiate terms that will also somehow favor you, try to do so.
Lastly, ask whether you will be still held responsible for some additional expenditure such as advertising. It will also concern whether you have a fixed amount that you need to pay or either a limitation.
Like a typical seller, it is necessary for you to provide your buyers with the so called vendors statement that will contain the details of the property. It basically includes the following information- restrictions on title (if applicable), rates, zoning, notices, orders, building approvals and other services connected to the property that must also be included in the papers.
When dealing about home selling tips. Remember these things.
You only make a first impression on the prospect buyer once. Like a person, you are fond of saying first impressions last; this is also true when it comes to your home. Make the most of it. Be sure that the first time that the prospect buyer will visit your place they will already be impressed with the kind of arrangement you have in your home. There is no need for you to buy any expensive ornaments but simply to give them a light impression of your house because of its neat appearance; it is a big thing already. Beautifying and ensuring the security of your home will count a lot to your buyers.
While on the selling price of your home/investment, it also depends on a number of factors, some are:
1. The number of buyers that are available in the real state market that are searching for homes like yours. It is a basic consideration because; you will be depending on your prospect buyers upon selling your home. It is from them where you can gain money.
2. Check on the number of homes listed in the local real state market, homes that are like yours. This is where competition enters, the many homes available, the lesser possibility that your home will be sold. So, you have to make an edge over your competitors.
3. Determine whether the condition of your home is better or not. You must be aware of the competition in the market. Grab all the chances that you can, have your home improved before selling it so you wont have any regret at the end of the day.
There are many factors that you can’t control when selling your home, for example, the supply and demand of houses for sale in your area, but you can control how your home looks when it goes on the market.
You need to do a lot of preparations before you can declare your house as for sale, so its better that you first think about your decision before making a move. Rush sales are only for those who needs the cash fast and is willing to take a loss. Homes in Victoria are too precious and pretty to be just given away at a low price.
Free for sale by owner listings - sell your house for free - You can also search our database of family homes for sale by owner or read a selection of real estate articles and information at Home-Sale.com.au
Real Estate Investing Avoid Buying a Unique Home in Preforeclosure Even From a Nice Family
September 17, 2009
Early in my career as a real estate investor, I got a call from a really nice family about to lose their home to foreclosure. Located in the suburbs, the house looked pretty much like every other house in the middle-income neighborhood on the outside. On the inside, though, the house was very unusual.
You see, the husband and wife were theater majors in college and they remodeled the lower level of their home to look like the set of a movie. The home gym looked like the set of Million Dollar Baby. The playroom looked like the set of Home Alone. And the home theater (with seating for six and a big screen TV) was painted entirely black, floor, walls, and ceiling.
The parents home-schooled all four children, so the lower level also housed a study room with computers and desks. The two-car garage was fully carpeted because the youngest children liked to play there during the day.
The house was a full time home, school, gym and theater for this family. The parents thought they would live there forever - or at least until the last of their children moved away. But sadly, they missed a couple of mortgage payments and found it impossible to catch up. They called me in hopes of selling their house fast so they could save their credit.
When I did my due diligence, I learned that homes in this neighborhood did not stay on the market long. Close to the public schools, it was a quiet neighborhood with lots of green space. Add to that: the neighborhood homeowners association often held potluck dinners and street parties and were the envy of the surrounding community.
What could be better? I thought. A great one-of-a-kind house in a great neighborhood at a great price.
I bought the house with about 20% equity, no money out of my pocket, and cash back at closing. I immediately put the house on the market. At the time I thought the uniqueness of the property would be a great selling point. I thought it would stand out as “one of a kind” and families would fight to live there.
Boy, was I wrong.
Most people who looked at the house thought the unique features of the lower level were just plain weird.
I marketed the house specifically to families with children who I thought would love the spacious gym, the play room, the home theater, and the study rooms as much as the family who had put so much of their personal stamp on them. But no one else seemed to see the beauty of it.
Only the strangeness of it.
The house sat on the market five months without a decent offer. I watched my profit dwindle drastically over six months while paying holding costs, utilities, and lawn care.
Then I made a hard decision. I hired a remodeler to transform the lower level into an ordinary looking basement with smooth white walls, dropped ceilings and beige carpet. I watched even more of my profit evaporate.
But I quickly found a buyer.
Lesson to be learned: Three bedroom, two bath, bread-and-butter houses are the best investment properties for a reason. Everyone can imagine living in an ordinary house. Not everyone can see themselves living in a really unique one.
Private Moneylenders The Real Estate Investors Secret Weapon
September 14, 2009
Real estate investments are very lucrative and offer a variety of other benefits such as tax deductibles and asset appreciation. However, it is beyond the financial means of most real estate investors to pay the cost of their property up front. Such investors have to obtain a home loan from private lenders or financial institutions to bear the cost of their new home.
It is very common for real estate investors to procure finance in a range of eighty to hundred percent of the property value. The homeowner is required to make monthly payments to the financial company for an agreed period.
Private moneylenders or ‘hard’ moneylenders are generally third party lenders that provide the necessary funds to buy or renovate your home. In exchange, the homeowner agrees to pay a certain percentage of the profits earned after selling a property after renovation. This form of lending is mutually beneficial to both parties. It guarantees lenders better returns for their money, as the rate of interest is quite high.
The loans, often short-term loans, are especially beneficial to real estate investors who have a financial need for a very short while or who have been turned down by other financial institutions due to poor credit score. Another advantage of obtaining loans from private moneylenders is that they offer fast loans unlike many other financial companies and banks that offer loans after following a long internal procedure for loan sanctions. As a result, investors are drawn to such lenders owing to the flexibility and convenience offered by private moneylenders.
Typically, private moneylenders are most eager to work with people who have a promising venture. If a venture is good enough, they are willing to overlook their credit records. This form of financing can prove to be extremely expensive as such loans attract very high interest rates as compared to other banking and financial institutions. Another difficulty is that such lenders are quite hard to locate as compared to other traditional lenders.
People, who have surplus liquid cash and are on the lookout for ways to multiply this amount in a short period of time, become private moneylenders to provide funds to borrowers who are in need of quick cash.
However, it should be noted that all private moneylenders differ in their dealings and the amount of funds provided and the repayment terms may greatly differ. They may charge an interest in the range of 12% to 18% and have a well-drafted loan agreement to secure their investment. They may finance 50% to 75% of the home value post renovation for a period ranging from six months to five years.
The funds can be held in trust or escrowed until the renovation project is fully completed.
Discover exactly how Sal Vannutini combined two of the easiest (yet brutally powerful) real estate investing strategies and made an insane $31,510 Profit In Just 49 Days… And How You Can Do The Same!”. Visit FixerUpperFortunes.com
5 Ways to Find the Best Stock Picks
September 12, 2009
There is no doubt that penny stocks are a risky and thinly traded breed of stocks issued by relatively tiny companies. Also, the SEC does not require penny stocks to follow their reporting rules. This combined with unclear or unverifiable financials can make this stock seem like something to avoid altogether. Penny stocks can be dangerous for investors of all experience levels but especially for amateurs just getting their feet wet. Here are five tips to help find the best penny stock picks.
1. Profit
First off is the company you are interested in investing in experiencing any sizeable profits. Better yet is their profit to debt ration favorable. Youd be hard pressed to find one of these little companies without debt but that doesnt mean you cant be picky. In this case the least amount of debt with the most profit will be a better investment. Another thing to watch is how progressive the debt payoffs have been. This would be a sign of good or bad financial management.
2. Industry Trends
This is one of those methods that almost all people use anyway. If there is a high demand for oil then people instinctively want to go buy oil stocks. The only problem with this kind of trend analysis is it really isnt forward looking analysis. This is just waiting and seeing which doesnt get you in on the ground floor of and investment before the public takes notice. Investing ahead of an industry trend is far better. So look for stocks in industries that are the edge of more demand.
3. Personal Interest
Theres a saying that you do well at things you enjoy to do. This makes logical sense and it works with stocks as well. If you invest in something that actually interests you then you will naturally be more studious and make more of an effort to choose the best stocks. It can be very boring researching stocks that dont interest you and you are likely not to be as thorough as you should be.
4. Tenure
How long has the company been in business? This is not to say that investing in newer companies is a bad idea but its more likely to be safer investing in a more established company with some kind of track record.
5. Bad Behavior
Last tip is an obvious one. Stay away from companies whose operations or transactions have been questionable. Even if the bad press is not completely true it will be difficult for a company to recover in the short and maybe even long term.
Scott Johns conducts research and analysis of stock market picks for a penny stock analysis company. To check out penny shares for some of his company’s latest picks.
Dealing with Fraud in Real Estate Purchase in Alberta
September 9, 2009
The Real Estate Council of Alberta has resolved to take the issue of fraud very seriously. It is a fact that of late many Alberta residents have been victimized by mortgage fraud upon being lured by promises of big returns. There have also been cases where some person has quite unknowingly allowed a fraudulent act to become a part of their action which has given shape to the plan of some fraud mastermind.
Mortgage fraud and the victims of fraud in real estate purchase
Mortgage fraud is defined as the material misstatement, misrepresentation or omission that is relied upon by an underwriter or lender for funding, purchasing or insuring a mortgage loan. The misstatement, misrepresentation or omission refers to the lies as also the white lies. In case a lender makes an advancement of mortgage money while telling any small lie regarding the borrower’s income, property value, intended use of property etc. then a mortgage fraud is said to have occurred.
Common victims of fraud are those who have purchased real estate whose values have been over inflated by a series of fraudulent transactions. In this way several consumers have had incurred huge financial losses and their credit ratings have been damaged.
Dealing with real estate related fraud in Alberta
This is a crime and you need be informed and armed beforehand to effectively combat the damaging influence of mortgage fraud. You need to beware when approached for opting for any scheme set to help make quick and easy money in real estate. Caution needs to be observed when your name is being taken down for credit purposes or when you are being asked to create or alter certain documents in a real estate or mortgage transaction. If you are suspecting that you can get involved in a fraudulent transaction then you ought to immediately report such suspicions to the Real Estate Council of Alberta (RECA) for them to take suitable action.
In an effort to reduce mortgage fraud relating to the real estate market of Alberta, Canada the RECA has taken up several initiatives-
- Efforts have been made to bring about a change in the industry by introducing mandatory mortgage fraud awareness course, improved investigative resources and processes, stronger sanctions against licensees involved in mortgage fraud and development of ongoing education processes incorporating mortgage fraud identification knowledge.
- There have been collaboration endeavors with other stakeholders and enactment of legislative changes and information sharing efforts extended.
- There has been made efforts to increase public awareness.
These will hopefully work towards curbing mortgage frauds to a desirable extent and make the investment in real estate in Alberta less risky.
Jason Uvios writes about on Dealing with Fraud in Real Estate Purchase in Alberta to visit :- real estate in alberta, alberta nursing homes and low cost seniors housing 2b lethbridge alberta
Dealing with Fraud in Real Estate Purchase in Alberta
September 7, 2009
The Real Estate Council of Alberta has resolved to take the issue of fraud very seriously. It is a fact that of late many Alberta residents have been victimized by mortgage fraud upon being lured by promises of big returns. There have also been cases where some person has quite unknowingly allowed a fraudulent act to become a part of their action which has given shape to the plan of some fraud mastermind.
Mortgage fraud and the victims of fraud in real estate purchase
Mortgage fraud is defined as the material misstatement, misrepresentation or omission that is relied upon by an underwriter or lender for funding, purchasing or insuring a mortgage loan. The misstatement, misrepresentation or omission refers to the lies as also the white lies. In case a lender makes an advancement of mortgage money while telling any small lie regarding the borrower’s income, property value, intended use of property etc. then a mortgage fraud is said to have occurred.
Common victims of fraud are those who have purchased real estate whose values have been over inflated by a series of fraudulent transactions. In this way several consumers have had incurred huge financial losses and their credit ratings have been damaged.
Dealing with real estate related fraud in Alberta
This is a crime and you need be informed and armed beforehand to effectively combat the damaging influence of mortgage fraud. You need to beware when approached for opting for any scheme set to help make quick and easy money in real estate. Caution needs to be observed when your name is being taken down for credit purposes or when you are being asked to create or alter certain documents in a real estate or mortgage transaction. If you are suspecting that you can get involved in a fraudulent transaction then you ought to immediately report such suspicions to the Real Estate Council of Alberta (RECA) for them to take suitable action.
In an effort to reduce mortgage fraud relating to the real estate market of Alberta, Canada the RECA has taken up several initiatives-
- Efforts have been made to bring about a change in the industry by introducing mandatory mortgage fraud awareness course, improved investigative resources and processes, stronger sanctions against licensees involved in mortgage fraud and development of ongoing education processes incorporating mortgage fraud identification knowledge.
- There have been collaboration endeavors with other stakeholders and enactment of legislative changes and information sharing efforts extended.
- There has been made efforts to increase public awareness.
These will hopefully work towards curbing mortgage frauds to a desirable extent and make the investment in real estate in Alberta less risky.
Jason Uvios writes about on Dealing with Fraud in Real Estate Purchase in Alberta to visit :- real estate in alberta, alberta nursing homes and low cost seniors housing 2b lethbridge alberta
