With the pressure of recession is surmounting in our daily life, smarter budgeting tactics are needed to ace the bad economic weather. The right budgeting methods can help you survive, even prosper today, without the need to live below your mean.
These tips involve nothing related to live below your mean, as it is probably the worst budgeting strategy and financial advice someone can offer you.
1. Clip coupons. A few minutes spent clipping coupons can help you save quite an amount of money everyday.
2. Buy in bulk. Stocking up, although costs you more today, allows you to save a lot in the future. Make sure you buy in bulk for products that carry no or long expiration date.
3. Save your change. Surprisingly, saving your change can add up quickly to your positive cash flow. Many discard their coins without putting much thought - Saving them in a bowl or any other containers can help you a great deal in your daily shopping needs.
4. Put a portion of your paycheck into a saving account on weekly or monthly basis. Whenever possible, deposit 10-20% of your income into a saving account and do whatever you can NOT to take anything from the account, not even a single penny.
5. Avoid impulse shopping. Impulse shopping causes disappointment and remorse. To avoid it, you should plan your shopping and make sure you avoid any additions to the plan, unless of course, they are either necessities or non-budget sensitive purchases.
6. Shop the sale racks. This seems obvious, but not all think that this what they want to do. With today’s recession, sale racks are everywhere and easy to be found in any retail stores or shopping malls - Utilize this help you get bargains (and a considerable saving in your personal finance.)
7. Avoid using high-interest credit cards. Credit cards could “kill” you if you don’t have the right reason to own them. Many uses credit cards to finance their purchases, even business - Although this can help you leveraging your finance, the high interest rate could swallow you if you are not careful.
8. When using a credit card for purchases, prioritize to use one with an introductory APR (some offer 0 APR) and a regularly low interest rate This could end up saving you big bucks every month and also in the future, which is one of the most important rules to personal budgeting.
9. Request free samples. Freebies are live-savers. They can save you a considerable amount of money, especially if you know where to acquire offers for free samples. The best bet is to Google for free samples, and start from the websites in the search result pages.
10. If you find yourself buried deeper in your credit card debt, call the creditor and request for an inclusion in a “hardship program.” The “hardship program” allows you lower interest rate and payment for a certain amount of time (depends on the creditor, it can be several months or until the balance is paid off.)
Thursday, July 30, 2009
Sunday, June 28, 2009
Mortgage Bad Credit Tips And Information
Bad credit creates truly dreadful experiences, particularly within the minds of creditors and lenders and they’re not about to forget in the near future. Access to information regarding your credit standing is simple for those individuals that you require cash from so you understand that if the credit report comes out a bit lower than desired, you might not always receive the loan that you want. All the same the emphasis is on ‘might not’ because even having undesirable credit, it’s still possible to get a mortgage refinance loan - the only catch is the refinance percentage rate.
Mortgage Credit
If you’re trying to obtain a mortgage refinance loan at low rates and you’ve horrible credit, just forget it. Bad credit makes you different from the other customers, specifically the ones who have a better credit track record. The greatest you can expect is a decent (meaning a fairly high) mortgage refinance rate as lenders are extremely cautious about customers with a problematic credit record. They’re giving you money, of course and if you cannot repay it, this spells a loss to their business.
Consider the types of programs available from the lender
It’s not just ever broker can give you loan programs which are beneficial to you, meaning, they likely cannot say with certainly what varieties of loans that you are qualified to receive. While seeking out low cost mortgage refinance rates, attempt to discover what loans your lender has, here are a few you might want to look at:
FHA financing: which don’t have stringent guidelines, plus, you’ll like the fact that you won’t get charged a significant deposit. Conventional mortgages: (Fannie Mae/Freddie Mac), which could offer you decent refinance rates while having bad credit which depends on the sort of property you desire, how much deposit you are able to pay and naturally, your score. Subprime mortgages, a different title for sub par credit mortgages, usually the type of loan you will receive if your score dips to under 600. The rates that you receive would depend on the parameters set by your lender and on your credit standing.
The best thing to do is to discover what your credit score is, even if it’s bad it will help provide your creditors a more useful figure to use as for calculating the refinance rates. You may then speak with your creditor to learn what types of interest rates that you are qualified for, just ensure to get quotes from many lenders to determine what one provides you the greatest bargain. Keep in mind that it is not necessarily just the rate, although additionally the total package being provided for you.
Another option for finding info about mortgage refinance rates which you are qualified for even while having terrible credit is to use online sites. Most creditors provide reckoners as well as other resources on their websites which you may use, simply enter the needed info and the tools will calculate your refinance rate very quickly.
Do not let bad credit stop you from finding the greatest deals which will help save you money. Historically, customers that have taken advantage of mortgage loan refinancing have enjoyed the advantages. Ensure that you obtain all of the data that you need so you’ll have the ability to effect the right decisions in regards to your finances. Keep in mind that a mortgage loan is a thing which you will be dealing with for an extended time.
Mortgage Credit
If you’re trying to obtain a mortgage refinance loan at low rates and you’ve horrible credit, just forget it. Bad credit makes you different from the other customers, specifically the ones who have a better credit track record. The greatest you can expect is a decent (meaning a fairly high) mortgage refinance rate as lenders are extremely cautious about customers with a problematic credit record. They’re giving you money, of course and if you cannot repay it, this spells a loss to their business.
Consider the types of programs available from the lender
It’s not just ever broker can give you loan programs which are beneficial to you, meaning, they likely cannot say with certainly what varieties of loans that you are qualified to receive. While seeking out low cost mortgage refinance rates, attempt to discover what loans your lender has, here are a few you might want to look at:
FHA financing: which don’t have stringent guidelines, plus, you’ll like the fact that you won’t get charged a significant deposit. Conventional mortgages: (Fannie Mae/Freddie Mac), which could offer you decent refinance rates while having bad credit which depends on the sort of property you desire, how much deposit you are able to pay and naturally, your score. Subprime mortgages, a different title for sub par credit mortgages, usually the type of loan you will receive if your score dips to under 600. The rates that you receive would depend on the parameters set by your lender and on your credit standing.
The best thing to do is to discover what your credit score is, even if it’s bad it will help provide your creditors a more useful figure to use as for calculating the refinance rates. You may then speak with your creditor to learn what types of interest rates that you are qualified for, just ensure to get quotes from many lenders to determine what one provides you the greatest bargain. Keep in mind that it is not necessarily just the rate, although additionally the total package being provided for you.
Another option for finding info about mortgage refinance rates which you are qualified for even while having terrible credit is to use online sites. Most creditors provide reckoners as well as other resources on their websites which you may use, simply enter the needed info and the tools will calculate your refinance rate very quickly.
Do not let bad credit stop you from finding the greatest deals which will help save you money. Historically, customers that have taken advantage of mortgage loan refinancing have enjoyed the advantages. Ensure that you obtain all of the data that you need so you’ll have the ability to effect the right decisions in regards to your finances. Keep in mind that a mortgage loan is a thing which you will be dealing with for an extended time.
Saturday, June 20, 2009
Watchdog to end commission based financial advice
It has been reported that the UK’s financial regulator, the Financial Services Authority, is set to put an end to all commission based financial advice, which will ultimately change the way in which financial products in the UK are sold to consumers. This move is part of an overhaul of the financial sector by the regulator.
The plans were outlined in the FSA’s Retail Distribution Review, and the measures are likely to have a huge impact on many financial services providers. This is because it will mean that they can no longer earn commission on a variety of financial products, such as investment funds, life assurance, and pensions. The changes have been provisionally scheduled to take place in 2012.
One official from the FSA said that the measures were being taken in a bid to try and rebuild consumer confidence following the last couple of years, which have been particularly turbulent in the financial sectors. He added that a more sustainable sector needed to be created, and that something needed to be done to help consumers get access to the advice that they needed quickly and effectively. He said that this was now more important than ever before.
At present the proposals over ending commission based financial advice are still open for consultation, and will remain so until later on this year. One of the major issues that the proposal aims to address is the issue of commission based mis-selling, where consumers may end up receiving poor or unsuitable advice by an industry professional that is commission based. This is due to concerns over advisors recommending products based on the amount of commission they will receive rather than on which product is best for the consumer.
At present around 80% of payments to independent advisors comes via commission rather than from a fee from the consumer, and in many cases the consumer does not realise that the advisor is getting commission, and assumes that the advice is simply free. The new regulations will stop financial groups from offering commission to advisors in order to get recommendations.
The plans were outlined in the FSA’s Retail Distribution Review, and the measures are likely to have a huge impact on many financial services providers. This is because it will mean that they can no longer earn commission on a variety of financial products, such as investment funds, life assurance, and pensions. The changes have been provisionally scheduled to take place in 2012.
One official from the FSA said that the measures were being taken in a bid to try and rebuild consumer confidence following the last couple of years, which have been particularly turbulent in the financial sectors. He added that a more sustainable sector needed to be created, and that something needed to be done to help consumers get access to the advice that they needed quickly and effectively. He said that this was now more important than ever before.
At present the proposals over ending commission based financial advice are still open for consultation, and will remain so until later on this year. One of the major issues that the proposal aims to address is the issue of commission based mis-selling, where consumers may end up receiving poor or unsuitable advice by an industry professional that is commission based. This is due to concerns over advisors recommending products based on the amount of commission they will receive rather than on which product is best for the consumer.
At present around 80% of payments to independent advisors comes via commission rather than from a fee from the consumer, and in many cases the consumer does not realise that the advisor is getting commission, and assumes that the advice is simply free. The new regulations will stop financial groups from offering commission to advisors in order to get recommendations.
Wednesday, June 3, 2009
Think About Your Home Loan or Mortgage Refinancing
There’s many benefits to having your mortgage refinanced however, the most pertinent and obvious reason is the lower rate that you’ll enjoy. When applied at the right time as well as chance, having a mortgage refinanced may save you a lot of money down the road. All the same, since timing plays a crucial role with refinancing, it’s important that you comprehend the elements that impact impact how well you can take advantage of it. When may a mortgage be refinanced and should you?
If you’re taking out a home mortgage loan and are considering getting it refinanced later, you will be happy to know that you could likely do this whenever you want. All the same once you have a mortgage and the rates begin behaving in a way which is good for you, you shouldn’t automatically apply for refinancing.
Home Loan
First, the variation for the newer rate of interest and the present rate of interest would be enough to actually give you a few advantages. Second, most lenders will likely encourage you to refinance just after the loan has matured for a minimum of 12 months give or take. Still, it is best to contemplate this only if interest rates have remained the same. If when you’ve taken a mortgage loan the marketplace trend begins tipping to your advantage, you should contemplate refinancing your loan. Keep in mind that rates of interest are fairly volatile and if you wait too long for them to drop even further, you could lose out on a very good opportunity to get a good deal.
Consider the 2 percent formula: Just|Merely|Simply] because the rates of interest have fallen a bit doesn’t automatically warrant your choice to refinance. Think about refinancing just if your new rate is around two percent lower in comparison to the rate that you’re currently paying. A one percent difference in the interest rate is not sufficient reason to make the switch.
Don’t forget that there are costs associated with a new loan: When you consider refinancing for your mortgage, keep in mind that you will have to pay extra for closing fees so an interest rate as low as 1 percent will not cover the expense.
You have no late payments: You may go ahead and refinance your mortgage if you’ve kept up on your monthly payments for the past year. If you’ve never been late on your payment throughout the past year, you might effect the change and get your mortgage refinanced.
You have already built up equity: If you want to refinance a mortgage soon, try to have a look at if you’ve actually accumulated equity. You need to possess at least 5 or 10 percent equity (depending on the lender) before you may think about refinancing as a doable choice.
So is refinancing an option for you? Of course, you could always contemplate refinancing the mortgage whenever you’re most comfortable. The key is to consider the time factor, as well as the sort of chance being presented by the marketplace, since of course, refinancing is actually taking out another loan. Simply be prepared for the procedures and costs that you’ll need to go through once more.
If you’re taking out a home mortgage loan and are considering getting it refinanced later, you will be happy to know that you could likely do this whenever you want. All the same once you have a mortgage and the rates begin behaving in a way which is good for you, you shouldn’t automatically apply for refinancing.
Home Loan
First, the variation for the newer rate of interest and the present rate of interest would be enough to actually give you a few advantages. Second, most lenders will likely encourage you to refinance just after the loan has matured for a minimum of 12 months give or take. Still, it is best to contemplate this only if interest rates have remained the same. If when you’ve taken a mortgage loan the marketplace trend begins tipping to your advantage, you should contemplate refinancing your loan. Keep in mind that rates of interest are fairly volatile and if you wait too long for them to drop even further, you could lose out on a very good opportunity to get a good deal.
Consider the 2 percent formula: Just|Merely|Simply] because the rates of interest have fallen a bit doesn’t automatically warrant your choice to refinance. Think about refinancing just if your new rate is around two percent lower in comparison to the rate that you’re currently paying. A one percent difference in the interest rate is not sufficient reason to make the switch.
Don’t forget that there are costs associated with a new loan: When you consider refinancing for your mortgage, keep in mind that you will have to pay extra for closing fees so an interest rate as low as 1 percent will not cover the expense.
You have no late payments: You may go ahead and refinance your mortgage if you’ve kept up on your monthly payments for the past year. If you’ve never been late on your payment throughout the past year, you might effect the change and get your mortgage refinanced.
You have already built up equity: If you want to refinance a mortgage soon, try to have a look at if you’ve actually accumulated equity. You need to possess at least 5 or 10 percent equity (depending on the lender) before you may think about refinancing as a doable choice.
So is refinancing an option for you? Of course, you could always contemplate refinancing the mortgage whenever you’re most comfortable. The key is to consider the time factor, as well as the sort of chance being presented by the marketplace, since of course, refinancing is actually taking out another loan. Simply be prepared for the procedures and costs that you’ll need to go through once more.
Sunday, May 24, 2009
Fresh low for savings interest rates
Figures that were recently released by the Bank of England have shown that savings rates on many accounts in the UK have now sunk to a fresh low following the series of dramatic base rate cuts that have been applied over recent months. The figures indicated that the rate of interest paid to savers that wanted to have instant access to their cash was only slightly above zero.
Whilst the base rate cuts, which took place between October and March sending the base rate plummeting from 5% to just 0.5%, came as welcome news for many borrowers who saw their repayments drop the news has been bad for savers, many of whom rely on the interest on their savings as a form of income. However, at the end of the February the average rate of interest paid on instant access accounts was just 0.17% according to the figures from the central bank.
The data also does not take into account the latest base rate cut of 0.5%, which came after the March Monetary Policy Committee meeting, so the situation could become increasingly bleak. The average rate of interest paid to those with notice accounts is also very poor, and at the end of February was at just half the level of a month earlier, standing at an average 0.18%.
One industry expert said that savers were being punished for mistakes that had been made by others, and that many were desperately trying to find alternatives for their savings that could help them to enjoy higher returns. He added that this showed just how badly savers were being affected, as under normal circumstances safety and security of savings would be paramount to consumers in the current financial and economic climate.
A number of industry groups are also concerned about the ongoing interest rate cuts, including the Building Societies Association. The BSA has stated on a number of occasions that the low level of the base rate means that savers are now less likely to put their cash into savings accounts due to the low returns, and this in turn reduces lenders’ access to funds for their mortgage lending operations.
Whilst the base rate cuts, which took place between October and March sending the base rate plummeting from 5% to just 0.5%, came as welcome news for many borrowers who saw their repayments drop the news has been bad for savers, many of whom rely on the interest on their savings as a form of income. However, at the end of the February the average rate of interest paid on instant access accounts was just 0.17% according to the figures from the central bank.
The data also does not take into account the latest base rate cut of 0.5%, which came after the March Monetary Policy Committee meeting, so the situation could become increasingly bleak. The average rate of interest paid to those with notice accounts is also very poor, and at the end of February was at just half the level of a month earlier, standing at an average 0.18%.
One industry expert said that savers were being punished for mistakes that had been made by others, and that many were desperately trying to find alternatives for their savings that could help them to enjoy higher returns. He added that this showed just how badly savers were being affected, as under normal circumstances safety and security of savings would be paramount to consumers in the current financial and economic climate.
A number of industry groups are also concerned about the ongoing interest rate cuts, including the Building Societies Association. The BSA has stated on a number of occasions that the low level of the base rate means that savers are now less likely to put their cash into savings accounts due to the low returns, and this in turn reduces lenders’ access to funds for their mortgage lending operations.
Tuesday, May 12, 2009
Credit card and loan defaults causing problems for families
Research that was carried out by the Organisation for Economic Co-operation and Development has shown how families across the UK are being driven to financial ruin as a result of soaring credit card and loan defaults that are said to be making the recession even worse. The OECD has stated that the debt levels of families in the UK have reached the highest level of any major economy, largely as a result of easy access to credit over the past ten years.
Between April and June of this year credit card companies have had to write off around £1 billion worth of credit card debt according to figures from the Bank of England, which are due to be released over the coming weeks. This represents the highest figure in sixteen years, which is when the country was last going through a recession. Worse still the situation is set to get worse over the course of this year, and the figure is a massive sixteen times higher than in 1997, when the Labour Party came into power.
Total bank write offs on Personal loans and mortgages is set to reach an astonishing £2.25 billion according to Capital Economics, and this is a figure that is far higher than the £1.96 billion that was seen during the same period a year ago. It is thought that this high level of household debt could result in the banking crisis getting even worse, with an increasing number of people having to file for bankruptcy.
Forecasts from the Association of Business Recovery Professionals have predicted that over the course of this year around 139,200 individuals will become insolvent, and this will reflect an increase of over 30 percent compared to last year. This could then have a knock on effect on the banking industry, which could end up restricting lending even further, hiking up interest rates, and ultimately deepening the recession.
It is also thought that amongst the reasons for the expected increase in debt defaults is the rising level of unemployment, which is set to force an increasing number of households into financial difficulties to the point where many will be unable to keep up with their debt repayments.
Between April and June of this year credit card companies have had to write off around £1 billion worth of credit card debt according to figures from the Bank of England, which are due to be released over the coming weeks. This represents the highest figure in sixteen years, which is when the country was last going through a recession. Worse still the situation is set to get worse over the course of this year, and the figure is a massive sixteen times higher than in 1997, when the Labour Party came into power.
Total bank write offs on Personal loans and mortgages is set to reach an astonishing £2.25 billion according to Capital Economics, and this is a figure that is far higher than the £1.96 billion that was seen during the same period a year ago. It is thought that this high level of household debt could result in the banking crisis getting even worse, with an increasing number of people having to file for bankruptcy.
Forecasts from the Association of Business Recovery Professionals have predicted that over the course of this year around 139,200 individuals will become insolvent, and this will reflect an increase of over 30 percent compared to last year. This could then have a knock on effect on the banking industry, which could end up restricting lending even further, hiking up interest rates, and ultimately deepening the recession.
It is also thought that amongst the reasons for the expected increase in debt defaults is the rising level of unemployment, which is set to force an increasing number of households into financial difficulties to the point where many will be unable to keep up with their debt repayments.
Monday, May 4, 2009
Cost of renting a home too high
In the current financial climate, and with the restrictions that have been placed on mortgage lending over the past year and a half, a rising number of people have been forced into renting a home rather than buying one. However, officials from one charity have said that many lettings agents across England and Wales are charging those that wish to rent a property excessive fees, and that this is driving up the cost of renting a home.
The Citizen’s Advice Bureau has recently released a report, which claims that many tenants are being hit with ‘unjustified and excessive’ charges from lettings agents across England and Wales, and that these charges could be adding as much as £600 to the cost of renting a property. Amongst the fees that these lettings agents are charging are administrative costs, credit reference check fees, and tenancy renewal costs.
Officials from the CAB have said that many of the charges and fees that the lettings agents are adding to the cost of renting a home actually bear no relation to the cost of the service that they are providing. The figures were partly put together from a survey of tenants that had contacted the charity for assistance, and the report was released just one week after the government announced a shake up of the industry stating that it wants a national register of private landlords in England and wants an independent regulator for lettings agents.
The CAB now wants any new regulations put into place by the government to include a ban on these excessive charges so that renting a home is made more affordable for tenants. The report claimed that many of the charges that were being added to rental costs were actually for services that should be a routine part of letting a property and not for services that were over and above the general work involved in letting a home.
The chief executive of the CAB said that these fees and charges were causing huge problems for people that were on low incomes and could not afford to get a mortgage and buy their own home. He accused some letting agents of just making up charges as they went along, adding that this was causing a huge barrier for many people.
The Citizen’s Advice Bureau has recently released a report, which claims that many tenants are being hit with ‘unjustified and excessive’ charges from lettings agents across England and Wales, and that these charges could be adding as much as £600 to the cost of renting a property. Amongst the fees that these lettings agents are charging are administrative costs, credit reference check fees, and tenancy renewal costs.
Officials from the CAB have said that many of the charges and fees that the lettings agents are adding to the cost of renting a home actually bear no relation to the cost of the service that they are providing. The figures were partly put together from a survey of tenants that had contacted the charity for assistance, and the report was released just one week after the government announced a shake up of the industry stating that it wants a national register of private landlords in England and wants an independent regulator for lettings agents.
The CAB now wants any new regulations put into place by the government to include a ban on these excessive charges so that renting a home is made more affordable for tenants. The report claimed that many of the charges that were being added to rental costs were actually for services that should be a routine part of letting a property and not for services that were over and above the general work involved in letting a home.
The chief executive of the CAB said that these fees and charges were causing huge problems for people that were on low incomes and could not afford to get a mortgage and buy their own home. He accused some letting agents of just making up charges as they went along, adding that this was causing a huge barrier for many people.
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