Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Among the various reasons to avoid bankruptcy, one of the most important reason that has come up recently is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The law introduced some new changes in the way a consumer filled bankruptcy. The laws imposed few additional requirements on bankruptcy filings that made it more difficult and costly for consumers to file. The glance of the BAPCPA Act 2005 is summarized below:

• After coming up of the BAPCPA Act a debtor need to go through a means test before filling a Chapter 7 Bankruptcy (the bankruptcy which discharges the debts in full). The means test ensures that a consumer is not abusing the bankruptcy privilege and he is really not in a position to repay his debts.

• Anyone fails in the means test means that he - is able to repay the debts - and must file Chapter 13 bankruptcy, the bankruptcy in which debts are repaid over a 5 year period.

• A debtor filling a bankruptcy must go through a consumer credit counseling at least six months before filing, from an approved credit counseling agency.

The survey revealed that bankruptcy filings had been dropped significantly after the introduction of the BAPCPA. The statistics shows that total bankruptcy filings in 2006 were 617,660 which was a 70% drop from 2005 total filings - 2,078,415. This is just because of the strict requirements for chapter 7 filling that led to the increased percentage in filling of chapter 13 bankruptcies filling. The chapter 13 filling had showed an increase of 40% while it had declined considerably in case of chapter 7 filling.

Getting Student Loans

Almost all prospective students are faced with doubts about college affordability. And indeed it may be a big trouble especially for students who haven’t saved money for college. Student loan is one of the easiest loans to get. All you usually need is a reliable co-signer, and you can get a good sum of money to pay for the college expenses.

Student loans have very flexible payments system. You don’t have to start paying the loan while you are a student and another nice thing about these loans is that they are interest free. There are 2 types of student loans: federal loans and private ones.

There is a wide range of federal loans you can choose from. These loans are usually granted for applicants who experience a financial need. Moreover, there are some requirements for a federal student loan:

• You must show a financial need;

• You must be studying for an eligible degree or programme;

• You must maintain satisfactory academic progress;

• You mustn’t be in default on a federal student loan.

If you are not eligible for a federal loan, you can always try to find a private one. Every private student loan has its own requirements, but as a rule they are not difficult to fulfill. Students qualify for private loans mostly based on their credit score. Be sure you have really exhausted all possible federal loans and scholarships before turning to private loans, whose rates are usually variable, and therefore susceptible to market conditions, as opposed to a fixed rate loan, which you can get from the government.

When A Loan Modification Should Be Used Rather Than Debt Settlement or Debt Consolidation

A loan modification, debt settlement, and debt consolidation all accomplish the exact same thing. Each of these options can help to lower your monthly expenses. But a loan modification and debt settlement can actually eliminate a portion of your monthly debt, where debt consolidation will not. Debt consolidation will also require a min. credit score to qualify, where the other two options do not (in general)

Here is a brief overview of these three options:

Loan Modification

A loan mod is when the terms of a mortgage are changed to make it more affordable for someone who has experienced a hardship. In most cases, you will need to be behind on your payments and will need to prove your hardship to qualify.

There are three areas of a loan that are changed when a modification is approved. In some cases only one of the loan circumstances are changed, while in others, all three are changed.

1. The term of the loan
2. The interest rate of the loan
3. The payoff amount of the loan

By changing any of these three items (or all three if you are a good negotiator), the monthly mortgage payment will be drastically reduced.

Debt Settlement

This option is similar to a mortgage modification, because the term, rate, and balance are generally reduced for unsecured debt. Debt Settlement is not intended for mortgages, but can be used along with a loan modification. Debt settlement generally refers to reducing the balance or interest rate of unsecured debt (credit cards, mainly). In most cases, it's possible to take credit card debt that may have never been paid off otherwise, and reduce the balance and establish a fixed repayment plan. This allows the debtor to pay the debt of in just a few years, opposed to the rest of their life.

Debt Consolidation

Debt consolidation is the process of getting a larger loan and paying off a bunch of smaller loan. Generally this is done to get a lower percentage rate. Good credit is required, or enough collateral to secure the loan. Most debt consolidation loans are secured with real estate. A second mortgage or home equity line is common examples of a debt consolidation loan.

Each of these options can have a negative impact on your credit, however, they should all be a better option than bankruptcy (for your credit). If you have having financial troubles, or if you have to pick and choose which bills are paid each month, then it's time to start looking for relief. There is no reason to struggle each month because you are ashamed to ask for help.

Your Mortgage Company and/or credit card companies have put you (and most of America) in this position and it's time to take back control! Get your life back on track today by considering one of the options above.

Basic tips on Mortgage Refinancing

The word “refinancing” indicates a way to replace your existing debt burden with the newer one with some changes in terms and conditions that will save some good amount of money in hand of the consumer. As Refinancing is mostly seen in case of home loans a common term has come up recently is “mortgage refinancing”.

Mortgage refinancing describes a situation when a consumer has a loan from a lender bearing a fixed interest rate mortgage which is now been declined considerably with a loan from some other lender. In this case a consumer would definitely like to avail a loan with a lower interest rates and better financial conditions with the same mortgage assets. A consumer needs to be well aware of some basic facts before applying for a refinancing. A mortgage refinancing is available to consumer when he has a mortgage on home and applying for a second loan to repay the old debts. The decision for refinancing a mortgage should be weighed well before applying, by balancing the cost of prepayment for loan and other financial terms & conditions for a newer one.

In today’s competitive environment interest on second loan is declined considerably unlike the older ones. A consumer should be well informed that in mortgage financing his property will be pledged as a security for the second loan and so he should plan well in advance about the future flow of income for repayment of the loan. The loan repayment is not only the factor to consider in this case, factors like interest charges, processing fee, and prepayment charges, long term budget constraints etc should also be kept in mind.

Make your Christmas more enjoyable with a Christmas Loan.

Although we are going through global financial crisis, but Christmas cannot be avoided. You may not have saved much for Christmas, but this festive season cannot be put on hold. They are lot of expectations of your family members when it comes to holiday season, and in such situation, Christmas loan can help you to overcome your financial stress.

Christmas loan is basically a personal loan and comes with low interest rates. The requirements are quite simple: you need to have an average credit score and a fixed monthly income to afford the monthly payment. Christmas loan is for everyone and anyone can apply for it.

You can get a Christmas loan from local banks and also from private lenders. There are many private lenders who offer a Christmas loan in a quick time. You can be sure of getting a loan from these lenders, as they have a high approval rate than other local banks. Even if you have bad credit, you can get a Christmas loan from private lenders.

Wishing all of you a very happy Christmas

SubPrime Mortgage Mess Explained

Bad Credit Home Loan Refinance

At present, it is seen that a huge percentage of persons are having a bad credit score. The credit crunch has knocked the economy pretty hard and we are now desperately looking out for several ways to save as much money we could save in order to minimize our total financial burdens.

Refinancing your personal home mortgage loan can save your lump sum amount of money in the long run. Most people believe that refinance is only necessary after having a drop in interest rates. Of course, your previous mortgage loan must have a high interest rate that it's possible for you to switch over into a lower interest rate loan. One of the possible & best ways of availing this is by refinancing your personal home mortgage loan. Mortgage loans are generally covers a big amount of money. If you can save few percentage points of your interest by any means, then this could easily saves up your thousands of dollars.

But what if you are having a bad credit history? Will it be still possible to refinance your home mortgage loan? Of course it is! It seems harsh, but this is the reality of this present situation. If you have imperfect credit history in your pocket, this will definitely makes you a high risk borrower to your lender. In order to save him from uncertain losses in future, your lender will increase the interest rates gradually which you have bound to pay for your bad credit home loan refinance.

The moral is that if you can choose your personal home mortgage loan refinancing plan wisely, you will gradually decrease the monthly payments which you have to pay. So make your monthly payments towards your loan in time and make improvement in your credit score to qualify lower cost saving home mortgage loan in future.

Consolidation Basics

Many people are in the grey area about using debt consolidation services and the reason behind that is people worry in regards to whether or not their current credit rating will stay in tact or not, the truth behind this is as follows, if you have a good credit rating it will remain the same, if your credit rating isn't so good then by consolidating your debts this is effectively increase your credit rating and will not damage it whatsoever.

The basics behind consolidation is that you are rolling all your debts into the one account which will reduce the amount of creditors that you owe money too, debt consolidation is a way of sorting out ones financial situation and will see to it that your back on the right path to the financial freedom. Debt consolidation is not just another loan, a debt is consolidation is joining all of your debts into one low monthly repayment rather than having to pay 4 or 5 different sets of interest rates.

Debt consolidation is a win-win situation for both your client (You) and for the creditor, as the creditor gains extra business and you receive a much easier to manage interest rate that is consolidated into the one repayment.

To learn more about Debt Consolidation please check out this excellent debt consolidation resource website Consolidationblog.net

Lower Your Mortgage Payment With a Loan Modification

Debt consolidation and debt settlement are both great ways for lowering unsecured debt payments. But since your mortgage is probably your highest monthly payment, it makes sense to get it lowered as well. This is easily accomplished with a Loan Modification.

A loan modification is when your lender permanently reduces the mortgage payment by lowering your interest rate, reducing the balance, and/or lengthening the term of the mortgage. This process can drastically reduce your payment and has helped 1000’s of people avoid foreclosure.

Although most lenders will force you to miss payments before approving a loan modification, it’s not always necessary. Even if you are current on your mortgage, a loan modification is possible. You just need to prove you’ve experienced a hardship and that lowering the payment is necessary for you to continue making timely payments.

If you are facing foreclosure, or if you would like to get a loan modification, the first step is to contact your lender and ask for help. In some cases, you can get a loan modification approved on your own, by simply talking to your lender. But more often than not, you will need to hire a professional to negotiate on your behalf. By hiring a professional, you will ensure that your loan modification has the best chance of approval.

When searching for a professional, we recommend finding a company that does not charge large up-front fees and has been in business at least 5 years, with a good track record. It’s important to avoid new companies or people who charge large up-front fees.

Remember these tips when trying to get a loan modification:

1. Always submit a complete package, including all proof of income or other supporting documents.
2. Don’t wait until the last minute to take action! A loan modification can take several months to complete, so take acting quickly will help you prevent foreclosure.
3. If a representative at your lender is not cooperative, try calling back to speak with someone else who may be more helpful.
4. Never become angry or rude with the representative. You need their help with the modification, so treat them with respect.
5. Follow up as much as possible. You will need to verify all faxes and continually contact your lender to make sure the loan modification stays on track.

If you have had a financial hardship that reduced your income, then you may qualify for a loan modification. Take action today and contact your lender to begin your modification.

Car Insurance Quotes and Your Driving History

Many people compare insurance prices before they purchase a motor vehicle or when the insurance rates go up. While a rise in the prices is a good reason, shopping for car insurance should be on everyone’s list. In order to guarantee that you always get the best possible car insurance price, compare car insurance quotes from leading Canadian insurers.

Part of your automobile insurance premium is determined by the type of car which you drive, thus don’t forget to calculate the cost of the insurance when choosing a new car. You will pay less for insurance if the car that you buy has less chances of being stolen (think of anti theft systems), and if repairs cost less after an accident compared to other makes and models. Generally cheaper cars cost less to insure, while more expensive cars cost more.

When you change your address, premiums will probably change because the insurance rates vary by place. If you’re lucky, it could mean you will pay less, while for others it could mean more.

If you had a ticket or an accident it will affect your premium since automobile insurance is determined by your driving history and bad or careless history spells high rates. If you obtain a ticket or have an accident, expect to pay more than you’re paying now. The best thing to do is to compare rates, as you will probably be astonished by the rates available and the money you can save.

Lower Car Insurance Rates by Improving Your Driving History

You can improve your driving history, and lower monthly premiums. While your driving history won’t improve right away, and accidents along with tickets will continue to be factored into the premium, companies might offer better rates as soon as you have improvement. You must notify the of the change, or simply compare auto insurance using online services.

Finance cartoons

Why You Need A Good Credit Score

This video helps you to know the importance of having a good credit score. And also explain how a bad credit score can affect you in various ways. You loan can be denied if you've a bad credit and it also effect in other financial matters. It also explains what you need to do to get a good credit score like maintaining your bank account so that it shows regular transaction. You get information on the things that get counted in your credit report.

It's a very good video that I found and like to share it with you.

Five most common Bankruptcy questions

Can my creditors harass me after filing bankruptcy?

No, they will not! As per the law, once the bankruptcy documents are files, creditors must cease all the actions against debtors. Creditors cannot continue any lawsuits or call for payments.

Do spouse get affected?

If you spouse is not responsible that is didn't sign a contract or agreement, then they won't be affected. There are few cases where it is must for both husband and wife to sign the contract, such as purchasing or selling of a property. But other debt, such as credit cards, doesn’t require both to sign.

Consult your lawyer for more information on this.

Who can know?

Though Chapter 7 filings are public records, no one will know about that. There will be a record of your filing with the Credit Bureaus and for next 10 years it will remain on your credit record.

Will I ever get my credit again?

Yes! Many banks offer "secured credit cards where debtors need to put up a certain amount of money in account as security and guarantee payment. Initially the credit limit will be equal to the amount deposited and then it increases as per your payment record.

After two year of discharge, debtors can also avail mortgage loans on normal terms and conditions. Filing bankruptcy record stays for 10 yrs on your credit report. After that it becomes less significant.

How much it cost?

Filing chapter 7 bankruptcy will cost you $300 plus the lawyer's fees. Bankruptcy lawyer's fee varies, but should not be more that $2,000.

Common mistakes that we do when Refinancing a Mortgage

1. It's easy to find a lender online or in newspaper, that appear offering a good rate and borrower go for that without checking what other are offering. This is a very common mistake found by borrowers. Checking out the competition will help to save more.

2. We all know that interest rate is the primary factor, but there are also some other charges that we should check before applying for a loan. Borrowers usually check the interest rate and if low they go it without checking other charges like loan origination fees, points, credit reports etc.

3. Some borrowers also try time interest rates. That is watching daily changes and goes for the lowest. But in that case interest rates might go up again. It's just like stock market that goes up and down with time.

4. Some of refinance our mortgage to take some cash out of their home, perhaps for investments, home repairs or a major purchase. That is basically borrowing against the equity of their home, which is fine. Problem arises when you take too much equity which can boost your mortgage and may fall in financial crisis.

5. Resetting a longer loan period is not a good idea. Refinancing is like taking a new loan that has 20 or 30 yrs to repay. Generally refinance is to save some money, but if you set a long time for loan period, the total amount you pay is same that as for first mortgage loan.There will be no saving.

Help With Your Loan Modification

Homeowners who are struggling to make payments on their home loans can now use loan modification help to convert their high-priced loans into smaller, more affordable monthly payments. Find out what lender loan modifications are and see if you are eligible to qualify for them. The following are some of the questions you might ask if you are going to apply for a loan modification and the answers to your questions:

• What qualifies you for loan modification help? If you have been a victim of a financial tragedy or have an adjustable rate mortgage then you might be eligible to qualify for a loan modification which will lower your monthly mortgage payments.
  

• How does the lender decide how my new lower payment will come to be? This varies from bank to bank so you should check with your bank and find out what their rate is. Usually most banks will make the payment anywhere from 37-41% of your gross monthly income.
  

• Will my interest rate be decreased? Most loans involve one or more of the following: A lower interest rate, principal forbearance, a more spanned out loan term, or an interest only period. Generally, there will be a combination of any of these scenarios to arrive at a lower mortgage payment.

• What about all of the numerous penalties and fees that were added to my loan? In most situations the lenders will void the fees and penalties; this is part of the loan modification program. You will still be responsible for the payments that you missed, however they will be spread out over the term of your loan.
  

• What is the cost of loan modification help? When you apply, the bank will not charge you, but you should be ready to make a payment once you come to terms with the loan workout. At the beginning of the loan modification, most lenders will ask you to provide them with the first five months payment.

• How can I find out what programs are available to me? You will need to speak to someone in your bank’s loss mitigation department and request an application package. The Complete Loan Modification Guide can also assist you with learning about the various programs as well as helping you set up and send you package for reviewing.
  

• Do you have to have a bad history with your payments to get help? Most lenders do not require this; however you will face an interest adjustment rate or a reduced income in the future. Homeowners who are in danger of losing their homes will be given first choice for this service. Just remember, the sooner you submit an application, the sooner you will receive help.

• Which is better: Going through a loan modification company or using my bank? In most situations using your bank is the better choice. A lot of these loan modification companies do not know what they are doing and do not guarantee you success. If your specific case is complicated then you should seek out an attorney with experience in this field.
  

• How is do-it-yourself loan modification? To successfully do this you must do research in this field. Plenty of borrowers have modified their loans successfully and you can too. A knowledgeable homeowner, who is persistent, should have no problem receiving loan modification help from the lender of their choice.

• Where do I begin? There is an easy to understand handbook that will take you through this process step-by-step so that you can get the results that you desire.

How to stop foreclosure and save home

Foreclosure should be a last resort in the way of save your self out of this recession period. Home foreclosure is one of the common hits in the recent period of financial recession. This situation basically arises when a borrower misses too many mortgage loan installments. Once he receives a warning notice to foreclose his house means the process has already started. Foreclosure is a legal process where the property will be sold and the money collected from the sale process will be used to meet the outstanding debt. This is actually done after all options are failed.

In a legal manner, a borrower must approach the lender stating his financial condition and he has to be honest enough that the lender can consider his request. This could be the one of the ways to protect the home from the foreclosure. Considering all the factors relating to foreclosure, the lender has to take certain decisions because the foreclosure normally has a complex process to deal and takes certain more time. It is a deal of more expensive with time is the crucial factor. One of the important things from the borrower point of view is, his credit will go down if he forecloses his property. It effects on borrower credit rating for more than seven years.

So considering all the above factors, if a borrower is good honest person and submits himself/herself to the lender with actual financial position, the lender may help the borrower in saving your house.

Unemployment rate worried traders

As per ADP National Employment report, employment fell by 298000 in August following a loss of 360000 in July. It is much less than the number of losses in since last September 2008, but more than expected by the analysts.

This report on unemployment gave investors another reason to worry about what is widely seen as the biggest problem facing the current economy. Unemployment mostly hit consumer market. People are restricted themselves for consumer spending, which accounts for about 70% of U.S economic activity. It will be a real trouble in pulling the economy out of the longest recession after World War II, without getting much help from consumers.

"Until Friday's data comes, no one is really making any big bets," said Neil Massa, senior trader at MFC Global Investment Management. "A little profit-taking looks healthy at this point."getting much help from consumers.

Investors fear to take risk for the reason that a weak job market can effect in pulling up the economy and hit the stock market. For every two stocks, three fell.

The Dow fell 29.93, S&P index fell 3.29, while the Nasdaq fell 1.82. Bond price get a rise. Other smaller companies fell 2.23.

How to save money

Country is suffering with economy. Cost of living is increasing gradually and at the same time unemployment is raising from all the corners. This could be the ideal time to think about our savings and invest the saving money safely. Many people know how to earn money but there are a very few who know how to save money. There is nothing like you have to study some of the articles about how to save your money but you just need to spend money where it is required and keep yourself away where it is not required.

There are several ways to save your money, but keeping everything within the budget and enjoy the activities of life will show you the proper manner of your savings. Your savings with out a proper budget may be not possible and you may not drive your life to a right way. So budget plays a key role in saving money. Discriminate your income and expenses, get high interest tax free savings account, make necessary adjustments when required, figure out how much you require spending for a month and then follow as per the planned budget.

You have to take care of your family requirements apart from the regular spending activities. Open a savings account and keep your extra money in your account. Never keep the extra amount of money with you. You can get some interest on the savings which is an added advantage of your savings. You can easily save money by follow these steps.

Savings money can also be useful for certain unexpected expenses which are not eliminated and common in human life like hospitalization, unemployment and etc.

How online auto insurance quotes can help?

If you are looking for a new auto insurance policy, the first thing you need is car insurance quote. In the past, obtaining auto insurance quotes are time consuming and lengthy. It includes either long conversation on phone or meeting with insurance agents. Today, we can get it easily and quickly using our developed technology.
Different insurance companies charge different premiums for auto insurance, and it differs greatly. You can get a good deal if you've quotes from multiple companies. You can choose the one with suits you better and is more affordable.
And the best thing is that, you don't even need to visit many sites to get multiple quotes. Now it's become easier to get multiple quotes on the same websites. There are few websites offering multiple auto insurance quotes from different companies. All you need to do is type your zip code and a list of the top auto insurance providers in your area will be shown. Then, you need to click on the companies and fill out a short questionnaire, and you will get the quotes.

Since we have so many resources besides us to help, we should use that to save our money and choose the best deal. Obtaining car insurance quotes online is simple and easy and can save 25% or your car insurance premium

Why you need a Free Credit Report?

Your credit report includes information that affect every aspect of your life. It contain the information like where you live, how you make payment of your bills, whether you have any criminal record or sued or have ever filed for bankruptcy.

Now this report is sold to employers, creditors, insurers and other financial service providers who use this report to evaluate your application for insurance, employment, credit, or buying/renting a home.

If your credit report is good, you don't have to worry. Just let the things go on as its going. But if it's mediocre or low, they you might have to pay for it. You will be charged high interest in case of getting a mortgage or other loan. So it's important to get a free credit report and check your credit, so that you work on improving it if it's low.

As per Fair Credit Reporting Act (FCRA), the three nationwide consumers reporting companies — Equifax, Experian, and TransUnion, should provide a free copy of your credit report once in a year, at your request.

How to get your free report?

The three nationwide consumer reporting companies — Equifax, Experian, and TransUnion, have their contact information on their websites. You can get mailing address and a toll free number through which you can order your free credit report.

What information you need to provide to get your free credit report?

You need to provide you name, address, date of birth and social security number. If you've shifted in last two year, you may also required to provide your previous address.

Score a U.S visa for $500,000

EB-5 visa program which is scheduled to expire by the month of September can be saved with this new policy of investment by immigrants. A bipartisan group of senators is trying to save EB-5 immigrants with this program.

In this program, the foreigners who invest $500,000 in struggling areas will get a temporary visa and if an investment can offer at least 10 jobs for US workers, the temporary visa changes to permanent green card. As per the record, last year, more than $400 million was invested in U.S ventures by EB-5 immigrants.

Though some consider this program unfair as foreign investors can buy a permanent green card, however local officials think the program is a great and effective way to develop the struggling areas.







"It puts us on the map," says Tim Sheehy, president of the Metropolitan Milwaukee Association of Commerce."EB-5 gives foreign investors the opportunity to consider a market that they probably wouldn't look at otherwise."

Across the country there are 46 regional centres offering investment in almost everything from ethanol plant to Napa Valley Vineyard.

Getting a Mortgage Refinance

A lot of homeowners all over the country are facing the possibility of a foreclosure for their homes due to the burdening recession that has plagued the economy. This is especially troubling for homeowners who are unable to pay their mortgages and who have too bad credit to apply for a mortgage refinance. Getting a refinance for your mortgage (especially if your annual income cannot pay for the accumulated debt already) helps by requesting your mortgage broker or the lending company to sum up all of the debt into one single amount and come up with a better payment scheme that will make it easier to pay off the new amount.

There are a lot of benefits if you consider refinancing your current mortgage loan. Some of these include:

• Getting a better deal or payment scheme that is easier for you and not disadvantageous to the lending company.

• Being able to negotiate for a lower interest rate either through the same or a different lender or lending company.

• Availing of promos that lending companies would provide for people in need of a consolidation of a loan or lower interest rate. These can occur any time and with any lending company, so browsing through ads and visiting sites or directories of lending companies will help you in getting that much needed discount.

If you’re facing this unstable financial situation and would like to know how to acquire a mortgage refinance, here are some tips for you to look into:

• The first thing that you need to do is gather all the important documents related to your mortgage payments and information regarding the lending company. You may have placed them somewhere in a drawer or have left it in a folder around the office, so take the time to look and analyze your credit standing, how much you need to pay, how high your interest rate is already, etc.

• Once you have all of those in hand, make the first call to your chosen bank or lending company to discuss how you will be able to get a mortgage refinance. If you think you are struggling with bad credit and a lot of financial problems, it is best to speak to the lender first.

• You need to research and keep your eyes open for good choices when choosing a particular lending company or a mortgage broker. You can visit mortgage company directories online for the best choices.

How to lower car insurance cost for your teen

This video is all about saving money on car insurance policy for your teen. Car insurance for teens is more expensive. This video discusses the things on how you can save money while purchasing car insurance for your teen. It also says about getting discounts on considering various points and how an expensive car can affect the cost of your car insurance policy. The advice given here is to check for the insurance cost before you go for an expensive car.

Investing in foreclosure properties

If you talk about investment, one of the best investments is investing in foreclosure real estate. As per the current market it's the best time to make small investment by purchasing foreclosure home for personal purpose as well as business purpose. One can purchase now to resell later for a good return.



Many upscale properties are going into foreclosure in this difficult economy, proving the notion that you can get a home only in crime-drives areas false. Beach side home and posh areas homes and now included in foreclosure.

Another point is that not all foreclosure properties are previously owned. Many foreclosure homes are new. Usually such home appears in national list. Many mid-scale and upscale homes are left for purchase. This is due to slow economy. Builders stop payment of construction loan without finding buyers for their homes which results this homes going into foreclosure.

It's time to buy a home for those you are willing to purchase a home for residential purpose and as well for those who want to invest in real estate, for rental and resale purpose.

Bill consolidation: Pay off your debts faster

Bill consolidation is an arrangement to consolidate all your loans and debts into one bill consolidation loan. Instead of paying for each loan and debt separately, you only need to make one easy to manage payment for all. Bill consolidation loan also lowers the interest rate and help you to pay off your debts faster.

There are many bill consolidation companies who can advice you for the best offer for your situation. They should be able provide you with the best offer and lower interest rates. So before you make a decision of getting a bill consolidation loan, don't forget to compare the interest rates and other terms and agreement with other bill consolidation companies.

Bill consolidation companies have skill to negotiate with your creditors and make a settlement. Sometimes the creditors may waive any late fees for other charges. They also try to lower the interest rates with your creditors. You need to make one monthly payment with the bill consolidation company, which they use to create a consolidation account and make payments. It also includes their fees. There are some interest rates like student loans and mortgage payments that cannot be consolidated.

Monthly fees are the better option to pay bill consolidation companies, as many clients drop out before in between. Although many companies charge an upfront fees which can be a large amount.

While searching for a bill consolidation company, try to look for those who only deal with bill consolidation. Companies who provide various services usually don't have a good record. Once you choose a company, remember to ask when your accounts will be fully paid. Also check your statements regularly.

How Payday Loans Work

Payday loans are short terms loan to get some fast cash when you really in need. Well, before you go ahead you should understand costs and risks with Payday loans.



Payday loans are known with different name. Some call it a check advance loan and some call it cash advance loans. Many call it a post-dated check loan and another name is a deferred-deposit check loan. The Federal Trade Commission has given another name and that is "costly cash". It's doesn't matter what you call it. It's the same thing: a short term loan with high interest.

Payday Loan Terms

Payday loan amount range from $100- $1000 and average loan term is two weeks. It cost around 400% annual interest (APR) or may be more that. The finance charge to borrow $100 ranges from $15 - $30.

Qualifying for Payday Loan

To get a Payday loan all your require is a active bank account with good standing, steady income source and identification. Payday loan lenders generally don't check your credit report.

What is Mortgage Loan Insurance?

You may have heard about paying mortgage insurance when one buys a new home or property. Yes, it's required to get mortgage loan insurance when you purchase a property or home and if you pay less than 20% as your down payment. You may be asked to get your mortgage insured even you pay more than 20% down payment. It's up to the lender and other risk factors that a lender may consider while financing your mortgage.


Why you need mortgage loan insurance?

Its the mortgage lender who ask you to get your mortgage insured as it protect them, in case a borrower cannot pay their mortgage, for some reason.

Is it mandatory to obtain mortgage loan insurance?

No, you may get some mortgage lender who finances your mortgage without getting a mortgage loan insurance. But in such cases the interest rates offered are too high and also there are other administration charges included.

Here is a chart showing the calculation of mortgage loan insurance premium:


I'll show an example for mortgage loan calculation to help you understand.

-> Price of the home (a) : $ 2, 00,000
-> Your 5% down payment (b) : $ 10,000
-> Rest down payment (a)-(b) = (c) : $ 1, 90,000
-> Insurance premium {2.75% of (c)} = (d) : $ 5,225
-> Total amount financed by lender (c) + (d): $ 1, 95,225

The lender who is financing your mortgage will include the mortgage loan insurance premium amount in your total mortgage amount and that you have to repay as per the mortgage loan terms.

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India's sensex up 14%: highest in 17 years

The BSE Sensex climbed for third week, after ruling party won general election. Sensex soared 14 percent, which is the best weekly record since March 1992.

At the start of the week, when the market was suddenly climbed more than 17 percent, few experts believe that the market is overbought, but the scenario was different. The BSE index has gone up for eleven weeks in a row, and has climbed 73 percent from the low market of 2009 March.

India's second- largest bank, ICICI Bank Ltd and India's biggest producer, Tata Steel Ltd, gone high more than 20 percent. Mitsubishi Corp. Japanese trading house, climbed 3.7 percent. The MSCI Asia Pacific Index jumped to 99.35 (2.1 percent up). Asian markets have brought in order 41 percent since it dropped very low in March.

"Markets are euphoric,” said Rahul Chadha, the Hong Kong- based head of Indian equities at Mirae Asset Global Investment, with $46 billion in global equities."

"Valuations have become high, but people are buying because they may be left out otherwise," D.D. Sharma, vice president at Anand Rathi Securities, said.


It's a freedom for Asian shares after a drop on Wall Street on fears the US, could lose AAA rating. European shares are up now after more than 2 percent fall in last session.

Credit Card Rights- Card holders must be aware of.

We hear about credit card billing problems of others or we our self might have faced such problem, where either there are some extra charges included by credit card company or charged for something we have not purchased. This is a usual problem we hear about from someone or other. Do we know what our credit card rights are? May be very few of us know what the rights are. It's very important to know your credit card right to avoid such billing problems.

Check your credit card right here:

When you make a payment, the credit card company must credit your account within 24 hours. If it doesn't happen, then credit card issuer cannot charge your account with additional finance charges. Many credit card companies were caught for violating this rule and charging extra from their customer. Make sure to get familiar with the payment procedures.

If you make overpayment for your credit card bill, you've a right to get the credit on your account. The over paid amount will get added to your credit limit. You may also ask for refund by a written request. The refund must be issued with in seven days by Credit Card Company.

If you lost your card or it's stolen, you must report it immediately. Card holder is not liable for any charges after the lost or stolen has been reported. And if there are any fraudulent charges in your bill, you only have to $50. That is the most you have to pay in such case. So the best way to avoid this is to report a lost of card or stolen of card as soon as you discover it missing.

If you find any error in billing statement, you can file a written complain within 60 days. An investigation must be done within two billing cycle and not more than 90 days of receiving the complain.

Whenever a credit card company makes any changes in the term agreement, they must inform you this through a written notice. And if you are not comfortable with the changes, you may reject the offer by following the instructions provided with the notice.

Being a consumer you have both obligations and rights while dealing with credit card companies, as it's controlled by both state and federal law.

Toyota cuts dividend for first time in last 14 years

The world's biggest automaker, Toyota Motors Corp, announced a loss of $8.6 billion as a result of low sales. TM files a loss of $6.9 billion for Jan-Mar fourth quarter and cuts it's annual dividend. It's the first time that Toyota cuts annual dividend since at least 1994.

The economic market downturn lowers the demand of cars, which pushed Chrysler, an U.S rival to file bankruptcy and hit Toyota badly. It's first-ever operating loss filed by this Japanese giant after a record profit the year before.

Toyota expected its sales to fall around 14% to ¥6.5 billion globally in 2009/10. For capital spending ¥830 billion is reported, which ¥1.3 trillion a year was before. Whereas, Honda Motors Co. (HMC), a domestic rival announced profit with small margin. This is because of their healthy business for motorcycle.

But many other are in the same situation as Toyota is in. General Motors Corp. reported a loss of $6 billion for the first-quarter.

Toyota said that for this financial year, it wants to cut 10% of the fixed cost or approx $5 billion. This will be done by salary cut, work-sharing and other measure. It also plans to cut down the capital spending.

It cuts its annual dividend from ¥140 to ¥100.

Basics of Student Loan

Student loan can be obtained from two sources - The federal government and private lenders. To get federal student loans, you are required to file the Free Application for Federal Student Aid (FAFSA). There are three main categories of federal loans.

1. Student loan (Federal Stafford loan)
2. Parents loan (Federal PLUS Loan)
3. Federal Graduate PLUS Loan
4. Consolidation loan (Federal Consolidation Loan)

Federal Student loan is made in the name of the student and doesn't require a credit check. The repayment options are very flexible. Need to repay after the student graduates or leave schools or stop attending. Stafford loans are also directly offered by some schools. These are known as Direct Stafford loan.

Plus loan is made in the name of parent, where credit check of parent is required. However, the credit criteria for plus loan is different as compared to other loans. It's based on federal requirements. Here the repayment option is different than Student loan. In plus loan repayment starts after full the loan amount is fully disbursed. Some school offer parent loan through federal government and some through banks and private lenders.

Federal graduate plus loan is quite similar to plus loan. The only difference is that it's made in the name of a graduate student or a professional student. Here the repayment period is sort. You need to repay within 60 days after the loan mount is fully disbursed.

Consolidation loan is for the students who are still repaying their student loan or for parent who want to extend the repayment period of the Plus loan. You can consolidate all your student loans with Federal Consolidation loan. In consolidation your interest rate is fixed and can also lower you payment by extending repayment period.

If your education expenses are more than what you get in Federal student loan, you can go for private loans. Private loans are offer by banks and other lenders. Here you don't get the federal benefits.

Confused which bankruptcy to file? Check common types of bankruptcy

Chapter 7: It's also known as liquidation bankruptcy, which means your liquid assets are used to repay creditors. Liquid assets are those assets that can be converted into cash quickly, e.g. saving and checking accounts. Some of your liquid assets are distributed to the creditors by courts. Any remaining debt after distribution of liquid assets to your creditors is discharged. After this you are not liable to repay any debt and no creditors or third party collection agencies can claim any debt from you.

To qualify for chapter 7 bankruptcy, you need to show as per your family size your income is less than the median in your state.

Chapter 11: Also known as reorganization and commonly used by the owner of a business or corporation. In chapter 11 bankruptcy, you can continue your business and maintain ownership of all your assets and to pay off your creditors, work out a reorganization plan.

Chapter 12: Especially for family farmers and fishermen. In chapter 12 bankruptcy, debtors can control their assets by full ownership and work out a reorganization plan to pay off the creditors. It’s like chapter 13 bankruptcy but stretches over three year.

Chapter 13: Filing chapter 13 bankruptcy is adjusting your debt with regular income and reconstructing your repayment plan. You can repay some creditors in full with interest, others a part of your debt in a time period of three to five year with a repayment plan.