Building an Emergency Savings
25 May, 2008 | Savings | admin | Comments Off
As everyone ages they start taking on financial responsibilities that could impact their future. Starting with college loans, car loans, and credit cards and then moving to mortgages, business loans and other debts that can be taken in a lifetime by any consumer.
In order to secure these loans regardless of the economy, a person must have and maintain a high credit score, especially these days as the credit industry has been feeling the pain of bad loans and unpaid credit. To get a high credit score involves having some lines of credit, using it on a regular basis and paying back always on time. It only takes one late payment to put a dent on your credit score which could get your next loan application denied.
To make sure you have the money you need to do whatever you want in life, the first thing you need to do is save your money. At any point, you should have saved up six months of your total debt. By doing this, it will protect you from the unexpected such as losing your job, a death in the family or any other unexpected or unplanned surprise. You want to make sure your credit score is protected at all times and that means having the means to keep up your payments regardless of the situation!
Credit Card Offers
21 May, 2008 | Credit | admin | Comments OffIf you’ve been bombarded with credit card offers but just don’t know what to do or where to go, let us help! Here you will find everything you need to compare credit cards, compare offers, interest rates and interest-free periods. These are all things you need to consider when opting for a particular credit card.
For example, many cards offer an interest-free period, with the trade-off being a yearly fee. So you should have a think about whether you are in a position to be able to pay off your credit card quickly, and not incur interest, so you can skip the cards with the annual fee.
If however you rely heavily on a credit card, and are (for example) paid monthly so you cannot always pay your balance off within the interest-free time allowed, then you might need to choose a card with an annual charge and a long interest-free period.
Of the several St George Bank Credit Cards on offer, the Vertigo offers a very low interest rate, 55 days interest-free – but the annual fee is $45. This might be one card to consider if you need a little longer to pay off your balance and are willing to pay a yearly fee.
Making The Most of Your Money
18 May, 2008 | General | admin | Comments OffSpending in an uncontrolled and haphazard manner could be disastrous for your finances. One should spend with discipline and planning, especially since things that were considered as luxury in the past has become a necessity in the present times.
But by following some basic tips one can not only save money but gain maximum benefit from it. Here are tips on how to make the most of one’s money.
Tip 1: Spend according to your budget
It is important to make a budget and then spending in line with the same. A well planned budget helps you to organize your spending better. Once the high priority needs have been met, then the remaining funds can be used to meet other expenses.
Tip 2: Do not yield in to impulsive spending
A person with money could be venerable to impulse spending especially with the lure of the diverse products available in the markets. It is important to resist the temptation and not succumb to it. No spending should be at the cost of your budget or investment plans.
Tip 3: Invest well
No money should left to languish in your savings bank account which fetches a paltry return. The smart thing to do would be to gainfully investing it after providing for contingencies
Tip 4: Track your credit card expenses
Credit cards gives you the freedom from the worry of dealing with cash by providing access to high spending minimum amount due it can be a very expensive proposition it could lead to high rate of interest on the unpaid balance.
Tip 5: Avoid penalties
Late payment of bills results in a penalty being levied by the service provider. You should see to it that you pay up all your bills on time and stay penalties as a penny saved is a penny earned.
Tip 6: Track your expenses
Tracking your spending habits closely can help you attain a better control over your finances. You can curb wasteful expenditure and find out how to save money.
Unemployed need more help with mortgage repayments
7 May, 2008 | Insurance | admin | Comments OffThe government is being urged by mortgage lenders to provide unemployed homeowners with greater assistance when it comes to making their mortgage repayments. Banking officials state that many homeowners become at risk of missing repayments and losing their homes when they are out of work for short periods of time, and that increased intervention by the government to help out in situations such as these could help many of these people to avoid having their homes repossessed through defaulting on their secured loans.
At present there are limits in place, including a nine month waiting time and a £100,000 limit. However, However, the homeless charity Shelter and the Council of Mortgage Lenders want to see the waiting time reduced and the £100,000 limit raised. Officials from the Department for Work and Pensions has stated that this is a matter than is regularly reviewed by the government. The current restrictions that are in place came into play in 1995, due to soaring costs associated with helping those out of work to pay their mortgage interest.
The Council of Mortgage Lenders now wants to see these restrictions relaxed, with one official stating: “The state support scheme was reduced in 1995 in the hope that private insurance would provide mortgage protection instead. What we’ve seen is, that hasn’t happened.” The CML is calling for a cut in the nine month waiting time, stating that by this time the lenders would have put repossession proceedings into place so any help would come as too little too late.
The CML also wants the cap on the maximum amount raised, stating: “If it had been linked to house price inflation it would be £300,000.” It added: “I don’t think it would put up costs hugely. It is short-term relief for those people getting back on their feet. In an environment of low inflation, low interest rates and high employment this bridges the gap for a few months for people who lose their job and look for another one.”
King warns on future of mortgages
7 May, 2008 | Insurance | admin | Comments OffMervyn King, the governor of the Bank of England, has issued stark warnings over the mortgage market in the UK, stating that the nation may find that easy and affordable mortgages will never return. He added that the return of the days of mega-mortgages, such as the 125% mortgages that consumers could take out until they were recently withdrawn from the market, was both unlikely and undesirable. He added that returning to days when such huge mortgages were on offer would be a ‘serious mistake’.
King said that the impact and impression that the ongoing credit crisis had left on the money markets would be remember for many years to come, and would make lenders think twice about dishing out finance without careful consideration. He said: ‘Even in five to ten years time, financial markets will remember this episode only too well.’
The cost of borrowing in the mortgage markets has gone up for both consumers and for lenders themselves. Lenders are now far more reluctant to lend to one another, and the cost of inter-bank lending has soared. Whilst the government’s recently announced rescue plan could help to increase confidence and inter-bank lending levels, thus driving down the cost of mortgages to some degree, King said that the benefits of any price falls in mortgage loans could be quickly counteracted by rising inflation, which meant that many households could find that they are no better off. He said: ‘The impact of higher food and energy prices are depressing living standards across Britain.’
The newly launched rescue plan will allow lenders to swap mortgage assets for government bonds, which King hopes will help to restore confidence amongst lenders, which could then have a positive knock on effect for borrowers.
