Business and Finance

Archive for November, 2010

Savings bonds are notes in the form of money from the government that say they owe you a certain amount of money on them. But unfortunately this money will not be repaid to you by the government until 30 years after you have purchased them. However if you decide that you need the money before the 30 years is up then it is quite possible for cashing savings bonds in prior to this time. It is quite simple for you to to to any bank and cash them in. But what you must remember is that if you do decide to cash them in prior to the maturity period they will not have reached their full face value. Normally they will earn the amount that you have invested and any interest that has been earned during the time that you have held the bond.

Certainly many Americans see savings bonds as a safe form of investment as they are considered a debt to the US Government. Then once the period of time is up in which they mature the Government has returned the money that you have invested in the bonds plus any interest that has been earned on them. Normally most savings bonds if left for the full period to the end of maturity will have doubled their value.

With any savings bond the interest earned is added to them monthly and will be paid to you when cashing savings bonds in. However, should you decide to cash in the bonds during the first 5 years you will find that you will have to forfeit the last three months interest that you would have earned. This is a penalty that you will incur if you decide to cash in your bonds earlier than the date of maturity which as already stated is normally 30 years. So for example if you redeemed a bond after 18 months you will end up only getting 15 months of interest that has been earned on it.

When cashing savings bonds you will receive the original investment plus any interest that they have earned. Think about if it’s worth it to cash them in early or if you have another way to get the money you need.

If you find it hard to cope with a variety of debts, you may also be paying more than you are required to. Situation gets more problematic day by day. If you take into account the gravity of this situation, you ought to take a serious measure, like the one in secured debt consolidation loan.

Securing debt consolidation loan is one of the easiest ways out to get rid of this debt-trap soon. Under the conditions of this loan, a good sum of money is sanctioned to the debtors. Through the raised amount, you can pay off entire of your existing obligations by a single monthly repayment scheme. It costs less compared to other individual loans. All of your dues cost quite lower here, than what is there in your current repayments. Your selected lender negotiates with your previous lenders with whom you owe money.

Followings are some salient features of consolidation scheme:

Low rate

Quick decision

Borrow up to 125% of property value

Loans from

If you are considering applying for a credit card after having gone through bankruptcy, the best advice is to apply for secured credit cards that initiate collateral usage for the credit card application other than applying for unsecured credit cards.

Have you ever wondered how secured and unsecured credit cards differ from one another? By the word itself, you know that the secure credit cards are secured while the unsecured credit cards are unsecured. The secure credit cards uses your saving accounts as collateral, usually starting from five hundred dollars or more that the credit card issuer use to determine credit limits for you, and as mentioned used for collateral purposes if there is a default in payments. For instance, in your savings accounts you have the amount of $500 dollars that can be used as collateral used for possible problems that are most likely to occur that can result in default payments. When you default, the card issuer automatically deducts the payments in your savings account to pay for the credit card.

Unsecured credit cards are also an option for those in need of a credit card but application for these credit cards may be difficult due to related bankruptcy problems. In applying for unsecured credit cards you are required to fill in an application form that is based on your income, credit report, and other necessary information stated on the application form that credit card issuers need to grant approval to your credit card application. These credit cards are approved with credit limits based on your income and credibility. Although applying for unsecured credit limit does not entirely mean that you are qualified for the unsecured credit card, instead applications are also based depending on the credit card issuer’s guidelines too.

In cases like bankruptcy, applying for secured credit cards are best. Besides, unsecured credit cards depend on the history of your credit, lessening your chances for unsecured credit cards. The moment the credit card issuers learn you have a record of bankruptcy in file, the issuer will definitely be questionable and may not grant you a credit card. On the other hand applying for secured credit cards have higher chances in getting a secured credit card whereas unsecured credit cards are difficult to apply for due to credit report such as bankruptcy.

Many companies offer secured credit cards that you may consider great, but the truth is all secured credit cards can be strenuous and could make troubles for you. Secured credit cards are not all the same therefore consider researching the different types of secured credit cards in limiting your choice by applying for the best credit cards. There are some criteria mostly important before applying for secured credit cards.

The following criteria you should consider are low interest rates, application fees if any, and be sure that a secured card issuer informs all three credit bureaus about the application. You should consider searching for secured credit cards that has low interest rates and no application fees included. Also, the important thing to remember is all secured credit cards should be reported at all credit bureaus for approval.

Applying for the right credit cards need time and effort for researching different types of credit cards offered by companies. If you feel that you are still not satisfied with secured credit card, you can also try unsecured credit cards. However, because of a bankruptcy background, the best to apply for credit cards are secured credit cards.

With so many credit card offers coming to your door every week, it can be difficult to make a decision. Yet, there are important reasons to take your time to review each offer carefully. Each credit card has its own rates, terms, and rewards packages. If you want to find the right card, meaning one that fit your needs, you must do proper research. Nowhere is this more important than when it comes to credit card scams.

Unfortunately, there are credit card companies that take advantage of people who do not know much about their cards or how they are properly used. Credit cards can be a recipe for financial disaster, especially when they are misused and the policies adopted by these companies favor their own interests over those of their customers. Understanding how to protect yourself from these credit card scams should be a priority.

Here are some offers that you need to watch out whether you get them in the mail or off the web:

Advance fees on credit cards Debt suspension Credit protection

It seems reasonable at first. All you have to do is pay a small advance fee to receive your credit card, regardless of your credit rating. If this wasn’t enough, these same companies make such offers more attractive by saying that you will receive low interest rates and large credit lines. For those slightly more suspicious, the fee is explained as a necessary part of the card application process or in order to move you to pre-approval status. The likely result is that if you pay an advance fee you will not see your credit card and you will loose you money as well.

Another credit card scam that plays off of the misfortune cardholders involves debt suspension. There are circumstances that befall customers like unforeseen medical problems or loss of work that keep them from paying off their balances. Nearly all of the major credit card companies offer debt suspension services to provide relief through temporary suspension of debts until you can resume payment. The scam centers on the fact that many are ignorant about these services. Certain companies prey upon this lack of knowledge and offer this same protection at a cost even though they are given free of charge.

Similarly, credit protection programs are offered by independent agencies despite the fact that there are federal protections already in place for credit cardholders whose cards are lost, stolen, or used without permission. It is simply a waste of your money to seek out and pay for this unnecessary protection. The likelihood of getting compensated for claims is very small in these situations.

The object is to keep you from making these costly mistakes-and hopefully keeping more money in your pockets. Keep an eye out for these credit card scams and others that may use ignorance of credit card protections and policies against cardholders.

The average person juggles numerous bills each month–credit cards, auto loans, personal loans and more! If you’re getting buried beneath paperwork, you may want to consider a debt consolidation loan. Instead of dealing with multiple creditors, you’ll only have to pay one bill each month. And you can get a debt consolidation loan–even if your credit is not-so-perfect–if you secure it with some type of collateral. Here’s how to get approved:

1. Decide on your collateral

Whatever item you choose as collateral for your loan should be one you’re willing to risk, since the lender could take it if you can’t make your monthly payments. One of the least expensive options would be your home, since you could get a home equity loan, a home equity line of credit or a second mortgage. If you’re not willing to risk your house, you could also use an automobile or a boat. Some lenders will accept stocks or bonds, or even expensive belongings such as jewelry or electronics.

2. Find a lender

You’ll need to find a lender that accepts the type of collateral you’re using to secure your loan. Most major lenders and banks offer home equity loans, and many offer personal loans secured with a vehicle or boat. You may have to dig a little deeper to find a lender that will accept jewelry or other belongings as collateral. Check with your local banks and credit unions, and do a search online to find an appropriate lender.

3. Compare loan rates and terms

Before you sign up with any lender, make sure you compare their rates and terms with similar loans. Some unscrupulous predatory lenders may try to take advantage of your situation by charging you a high interest rate or extra fees. It’s always best to compare at least two loans to ensure that you’re getting the best possible rate.

Try using one of ABC Loan Guide’s Recommended Lenders For A Secured Debt Consolidation Loan.

Secured Debt Consolidation Loans are possible even for those with less-than-perfect credit. By using an expensive item you already own–house, car, boat, jewelry–as collateral, you become less risky as a borrower, making it more likely that you’ll get approved for a loan.

When is a credit card not really a credit card?

Prepaid credit cards can give you many of the advantages of a credit card without the danger of getting seriously over your head in debt. A prepaid option is essentially a debit card that’s not attached to a bank account. Instead, you ‘load’ the card by sending money to the issuing company (or paying at a merchant to have the money credited to your account). Then you can use the prepaid card just the way you would any other credit card to make purchases at the register, over the telephone or on the internet. Each time you make a purchase, the amount is deducted from your remaining balance. You can usually add money to your account at any time, though there’s often a minimum and a maximum amount you can add at one time.

Why would you use a prepaid credit card?

In a word, convenience. It allows you the convenience of making purchases without cash and is accepted at any merchant that accepts credit cards with the same emblem. In other words, if you have a Visa card, any merchant that accepts Visa cards will accept your prepaid card. The one major exception to that rule is those services that set up a monthly debit from your credit card – subscription services. Since the acceptance of the charge from any company is dependent on your paying money into the card account, a merchant can’t be certain that the money will be there when they debit it.

It is also an excellent way to teach children and teens to handle credit responsibly. Many young adults get into trouble when they get their first credit card because of the novelty of being able to pay for things without money. If you get them into the habit of handling plastic in the same way that they handle cash – you only have so much of it – they’ll be far more likely to shop carefully and handle credit as if it were real money than if their first experience is with a credit card that can spiral them into debt.

Among the many options that you can see at moneyeverything.com are prepaid credit cards from major UK providers. As always, it’s important to compare rates and fees. While APR isn’t a concern with prepaid credit cards, there are variances in fees charged just as there are with other credit cards. You’ll pay a fee each time that you add cash to balance, for instance, and that fee varies from one provider to the next. Some will charge you for any billing questions that you might have, or for providing customer service calls. If you use your prepaid credit card as a debit card to get cash from an ATM, you may pay a fee to issuing company as well as to the ATM’s bank.

You won’t, however, have to worry about paying monthly bills, or about the interest rates charged if you carry a positive balance. Since the only money that’s ever available to you is the money that you add to the card, you won’t be running up your bills. You’ll only be making it safer and more convenient to carry your money with you.