What to do after Bankruptcy

Bankruptcy is one of the most significant events in life, comparable with marriage or divorce in its impact. However, unlike those two events bankruptcy is almost always a sign of bad times.

To make sure that the bad times are a thing of the past and you do not repeat the same mistakes that led to the bankruptcy in the first place, we have collected this handy guide to what to do after bankruptcy. Even a divorce may be a favorable event if it is done amicably, but a bankruptcy inherently means that you have fumbled financially; therefore it is a good time to make a new start using the following tips.

Assess your Credit Report and Finances

The first step to better financial management after declaring bankruptcy is to educate yourself about not just finance, but also about your own finances. You should read your credit card reports, as well as bank reports, to find out where you spend your money and what your sources of income are. Once you know more about your spending habits, you can take steps to change them for the better.

Learn to Live within your Means

Maybe you have done that always, but a bankruptcy should be taken as another chance to start living within your means. Make sure that you change your spending habits so that you cut back on all unnecessary expenses. When you are in this phase, it is a good time to learn about the differences between liabilities and assets. Any product or service, such as cable or mobile phone is a liability in the long run, whereas the vehicle that allows you to go to work is an asset. You should acquire assets, and try to reduce liabilities.

Pay Your Bills on Time

By paying your bills on time, you not only develop financial discipline, but also improve your credit score. If you find that your bills are too high or too many for your means, you should cut back on some of the services to reduce them. For example, if you have monthly subscription to entertainment or other services, you can unsubscribe till the time your finances are better.

Repair your Credit Worthiness

By declaring bankruptcy, you have definitely taken a huge blow to your credit worthiness. However, it is perfectly possible to repair your credit worthiness by using your credit card wisely. Paying bills on time is also a part of the process of improving your credit score. For a while, you will find that you can only get loans, such as car loans, at a higher interest rate. However, once you have paid them in full and on time, your credit score will improve and you should be able to access loans at a lower interest rate.

When you are recovering from bankruptcy, you are likely also recovering from a number of bad financial habits. Therefore, bankruptcy should be taken as an opportunity to change those habits, as well as to improve your credit score. Once you r credit score has improved, and you have successfully paid off all your debt, you can definitely call yourself a bankruptcy survivor.

 

Carnival of MoneyPros at The Savvy Scot
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Time to Refinance or Not

1193074_83871887Since the 2008 financial crisis, the home market has seen a lot of churning, with the result that home sales are close to an all time low in at least two decades. Home mortgage rates have also nosedived over the last four years, making them very attractive for anyone who wants to refinance their mortgage. In the United Kingdom, home mortgage rates too have hit new lows.

Mortgage Rates in UK

It has recently been reported that fixed home mortgage rates in the United Kingdom are at their lowest levels since 1989, when fixed-rate home loans were first introduced. This mostly impacts new buyers, because lower rates are a marketing technique to get buyers. Even taking that into account, the lower rate of interest is making refinance an attractive option.

The low mortgage rates are a result of the Funding for Lending scheme launched by the British government in concert with the Bank of England in August 2012. Ever since the launch of that scheme, home loan rates have been falling steeply. The scheme aims to push about £80 billion into the hands of borrowers, and is therefore making it easy for borrowers to access money at low rates. The government in the United Kingdom is making a lot of efforts to encourage the sales of houses in UK, which will help the average buyer in the long run because it will indirectly increase the value of every home.

Other reasons to Refinance Your Home

The other main reason to refinance your home at lower rates is purely financial. Once you have zeroed in on a bank offering a lower rate, you should make an calculation about how much can you save, and from there you can make a decision on whether you want to refinance or not.

For example, if you have a £100,000 mortgage that is at a fixed rate of 5.5%, for a duration of 30 years, you will incur a monthly payment of £568 for it. However, if you refinance it with a rate of 3.5%, your monthly payment will fall drastically to £408. Refinancing at a lower rate makes mathematical sense at every point; however, you do have to take care that there are no hidden costs or fees in the refinance deal.

In conclusion, we can say that this is the best time to refinance your home in the UK. With fixed-rate interest rates at their 20-year lows, you can easily get a deal that would have been unthinkable when you got your mortgage.

Rising debt problems is the main concern of drafting a budget

1176252_88773633It has been said by Bob Richards, the Finance Minister to the MPs that Government is going to raise debt ceiling by 2.5 billion and it will be high for all-time. Mr. Richards said that the increase was an indication of the severe state about the financial condition of the country. This was more than $1 billion high on the present debt ceiling.

According to him, the Government has to borrow above $330 million for the present financial year alone in order to cover a shortage of income in comparison to expenses. He told MPs on his first budget statement that it is the outlook of the Government what has become the yearly practice of diminishing the debt ceiling gives the feeling that there is undoubtedly no debt management at all. This will only sanction the restriction of Government borrowing. However, it does not set down the actual borrowing amount. The only change that can be done to debt ceiling is the final downward adjustment.

Mr. Richards has cautioned the House of Assembly that Bermuda Island is facing one of the severe confronts in the history. The economic basis of the island should be strengthened and secured in a better way. The OBA realizes the level and extent of the challenge and also what can be done. The objective is to make an economy that will work for everyone. This will set up a new basis for broad-based success.

The first path will execute definite pre-growth economic policies to motivate much-needed overseas investment, re-establish confidence in the island in order to make it a place where business can be done successfully and new jobs can be found easily. The second path will eradicate lavish spending of the Government. This will decrease national debt in due course. Besides this, the assigned borrowing requirement over the next year emphasizes the importance of the situation you face. Bermuda will require endurance and commitment to modify the method in which you do your business. However, the Government can’t do anything without proper support. It will obtain new cooperation level and support from the Bermudians in every field. As such, the existence of Bermuda economy is something for which you must work together.

Government anticipates taking in above $871 million in profits in the year 2013-14. But, it will possibly spend around $983 million. An additional $134 million will be spent on servicing Bermuda’s enormous debt.

Mr. Richards has said that the economy seems to be in its fourth year of contraction whereas Gross Domestic Product of the island had been reduced by 10 per cent since the year 2007. He also added that the economic pie shared by all the Bermudians is becoming smaller with very less to go around.

Bermuda Island had also experienced Current Account scarcity for five years. He added every year operating insufficiencies have grown unchecked from a $19 million excess in 2008 to a projected $247 million shortfall in the upcoming financial year. This accelerating progression is not acceptable at all. Thus, debt has been increasing since 2005, leaving the country by about $1.45 billion.

He further added that the debt level was a very big number for a small population that will take several years to pay off. As such, most Ministries’ cash requests have been reduced by a considerable amount during financial planning. Furthermore, the managerial structure of the Government is unnecessarily massive with 71 departments. This is a complication that produces surplus expenditure.

Yakezie Carnival at Financially Digital
Carn. of Financial Camaraderie at Thirty Six Months
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Why Are Quick Cash Loan Fees So Expensive?

1412644_75137726Whoever has needed money to pay for an unexpected expense before their payday knows that quick cash loans are often the only way to cope with such an emergency. Certainly, payday loans are offered indiscriminately to anyone who can repay this debt with a paycheck, and the easiness to get an application approved with no questions, make people borrow money even if they only need it to buy whatever thing that cannot wait until the payday. Wrong decision! Quick cash loan fees are so expensive that is very easy to fall into a debt trap from where it is very hard and costly, to get out.

The Truth about Quick Cash Loan Fees

You probably have heard that payday loans are short-term loans with the highest interest rates when it comes to borrowing money. Nonetheless, being almost the only option to borrow money when someone has poor credit, bad credit or no credit history at all, people tend to justify those expensive fees as an abuse from lenders to take advantage of their credit situation when it is not that way. Payday loan lenders stick to state laws that determine what the maximum amount for financial fees can be, interest rate, and other charges that people pay, which the amount can vary from state to state.

How Quick Cash Loan Fees are obtained

The problem with quick cash loans is that the interest rate to be paid is often calculated on a two-week basis, being short-term loans. Based on this fact, the quick cash loan fee is generally the equivalent of an APR (Annual Percentage Rate) of 460%, which is the highest interest rate applied if compared to any other type of loan. As a contrasting example, you could pay for a car loan only four and up to seven percent APR.

Quick Cash Loans Are Unsecured Loans

Another factor that makes quick cash loan fees so expensive is that we are talking about unsecured loans, and therefore lenders need to protect themselves from the risk that involves having an individual with bad credit applying for them. Since credit history is not a determining factor to get a quick cash loan, nobody guarantees that the borrower may not lose the job while having an outstanding payday loan to repay.

Quick Cash Loans from a Lender’s Side

On the other hand, many people are aware of the costly financing fees associated to quick cash loans and repay the debt timely. Indeed, you could manage to pay back your quick cash loan in full the next payday and avoid paying more interest rates added when the debt goes beyond it. Repaying your debt as fast as possible is not a good deal for payday lenders, thus offering low finance fees would not give them enough money to pay their own operational costs.

Avoiding Quick Cash Loans Fees Trap

The only way to stay away from the high costs of quick cash loans fees is avoiding them as much as you can, and only apply for them when you really need the money they provide and do your best to repay your debt faster than is expected.

 

Yakezie Carnival at My University Money
Carnival of MoneyPros at The Happy Homeowner
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Finance Carn. for Young Adults at Brick By Brick Investing

Why Invest in Precious Medals

bullionA metal does not become a good investment just because it is precious. Its relatively higher price in the market today does not automatically promise us that it will grow faster than other assets. However, there definitely are some good reasons why you should invest in precious metals. In the following sections we will find out what are precious metals and why invest in precious metals today.

What are Precious Metals and why are they Precious

In the context of investment, the term “precious metals” today refers to the following metals: gold, silver and six metals in the Platinum group, i.e., rhodium, palladium, ruthenium, iridium, osmium and platinum itself.

Precious metals are precious for a number of reasons. Some like gold are precious more for their aesthetic qualities, whereas others like rhodium are costly because of their industrial uses. However, one thing that is common between all precious metals is that they are much rarer than other metals like gold or Aluminium. Indeed, there was a time in 19th century when Aluminium itself was a precious metal because it was very difficult to mine; and therefore rarer. Today, industrial processes make it easy to mine Aluminium, which makes it very common, thereby making it cheaper. Therefore, we can say that what makes precious metals precious is that they are very rare. However, as already mentioned, rarity or high cost does not automatically make a good investment. The reason why you should invest in precious metals is discussed in the following section.

Reasons for Investing in Precious Metals

One of the biggest reasons for investing in precious metals such as gold and silver is the growth of India and China. Both these countries are the two largest consumers of gold, which means that demand from these two Asian giants will continue to grow as their economies continue to expand. Their growth is again a very good reason why you should invest in precious metals used in industrial processes. As their economies expand, these countries will demand more and more resources to manufacture goods, which will boost prices of industrial metals, including precious metals.

The current economy too has made precious metals a good candidate for short and long term investment. The 2008 financial crisis weakened the world’s strongest currencies, and has strengthened the case for investing in real commodities such as precious metals. Even today, the monetary policies followed by the world’s central banks are helping the case of metals. These policies, such as the policy of Quantitative Easing from Federal Reserve of USA, are weakening the currencies by introducing billions of units of their currencies in the market every month.

The two reasons stated above combine to make a very strong case about why you should consider investing in precious metals. India and China are going to be two of the four largest economies in the world by at least 2040. Demand from these countries, for metals such as gold and platinum, is going to continue to rise. Combined with the fiscal policies followed by the central banks, makes precious metals a very attractive proposition for investing.

 

Title..: Why Invest in Precious Medals
PersonalFinance-Tips
Yakezie Carnival at Debt Black Hole
Carn. of Financial Camaraderie at Debt Roundup

Use Low Interest Loans

Piggy Bank          If you are one of the unfortunate ones where at the end of the month you have bills that are owing and you do not have enough in the bank to cover them you will be faced with the situation of paying partially what you owe. No one ever desires this but people are often faced with it due to a number of unforeseen conditions. This could be from surprise car or house repairs, a job layoff or a number of other reasons. However if this happens to you the first thing you will want to consider is how to pay off the bills you owe on while paying as little interest as possible.

In order to pay as little interest as possible you must first go to your bank and tell them what you are facing. Most times a bank will be able to offer you a loan with lower interest rates than any credit card or what any other bill will charge for late payments. If you own your house or a car or can put up any considerable bank accepted collateral this is not difficult receiving a line of credit. Lets say for example they offer you £5000 loan, you then use this amount to pay off your bills and then only worry about paying back the loan amount. Now check this amount against what a credit card company would charge, or a hydro bill etc, It is almost for sure cheaper. Other than borrowing off a friend or family member who you know well enough that they don’t mind, a bank should be the first place to go when faced with this situation.

However if you are in a position where you don’t even have enough personal worth to consider a bank loan, you will want to explore other options in order to pay off your debt. Consider selling anything you may have via an online venue or with a local news paper etc. If this is not a viable option, you may have to go with a higher rate of interest but do compare your options as there can be considerable differences even among credit cards or other venues.

After you have solved the issue of paying back what you borrowed for, I recommend an all out assault on saving money in order to put a little bit away for a rainy day. Do whatever it takes as it may save you far more in the long run. Eat cheaper food (not unhealthy, just cheaper) turn your heat/ac down, walk more instead of using an auto, do whatever it takes and save a little bundle for the future to avoid a further situation like this.

 

Grab a Good Financial Opportunity

3026_20070825Do you know how to get rid of the fiscal despair? Do you think that recently due to the festive spirit you got into few bad debts?

Hope, you know and if you don’t know, then get access to some easy and quick loan.

It does not matter how lean and mean is the financial trouble, which is going to land upon you in an unpredictable adversity. For that, you do not need to step out and clear out the pace. Just look for the loans, fill up the application form that is easiest to approach, and short in terms.

The loan comes with some facility like filling up the cash gap, which remains jammed. So check out if you need a few hundred dollars ranging from $100 to $1500, you simple have to wait for the way to turn handy and the option is obviously the payday loans.

Associations that are having a good repute can be approached for payday loans. You will come across many scam masters or loan sharks over the Internet. In order to stay away and feel confined you need to put on a bit of exertion.

You need to go through some of the steadfast companies to figure what suits you needs in the best way. You need to switch over to a trustworthy firm that can render you with quality services.

Payday loans can define as one of the best solutions to do away with all kinds of fiscal nags, without making you feel the bad effect. During cash needs, these loans will be helpful to stop, steer, and clear the abrupt ways of hard money sponging.

Are You In Dire Need Of Fast Cash?

If you are in dire need of fast cash, you can actually stop by some payday lender and then ask for some help, worth few hundred dollars. The finest way to pull away these cash advances is to make sure that you are capable enough to pay off the loan sum, and inform them that you are able to pay it back within a fixed period.

The extent of returning a payday loan is 2 to 4 weeks and, I think all of you are aware of it.

With the payday loan, one can easily declare some monetary war. All you just need to discern the best facts and fortunes that can be easily addressed by these normal advances. As the repayment period is short, make sure that you fax the reimbursements within time and space.

The feasibility gets carried away in a simple version and is completely afar from the bank loan system.

Rate of interest of this kind of loan is too high and may agitate the customers to a certain extent. However, no one can deny the fact they are the best opportunity out in the town.

May be the interest rate is high, but for any kind of emergency say paying bad debts to get a car loan or applying for  mortgage, this loan works out in a friendly manner.

Author’s Bio: Kelly Brown is a financial expert who keeps information on loans with no credit and bad credit loans. She has asked many clients to take the help of such loans to ease their financial status. Now she is a financial consultant to call centers Philippines that increase the sales funnel for many financial organizations, though 24-hour answering services.

Buy Now Pay More Later

16376_20100126Life unexpectedly will through you a curve ball financially from time to time. There could be a major appliance that dies on you. Your car could face major issues that need repairing in order to allow you to get to work. We can all imagine and come up with scenarios where we are faced with a financial fee we where not expecting. If you do not have some kind of emergency fund available to take care of repairs or other mishaps, you could find yourself in a little financial trouble. So what do people do in this situation?

Many department stores and service retailers will offer a buy now, pay later deal. This does exactly what it says, it allows you to buy what you need/want and months or years down the road then you start making payments or buy it outright. This kind of arrangement can help you out in the short term to allow you to get what you need but what is it really doing to your wallet? While this sounds like a good contract, what you really need to ask yourself is if you will infact be able to pay for it down the road.

People often make a misassumption that years or months from now they will be in a better financial situation where as often they are in the same as they are today. Knowing this and then being faced with an additional bill to pay in the future can be stressful. Anyone taking out credit for anything has to really ask themselves if they will truthfully be able to make the payments at a future date. If the answer is suspect, it may be in your best interest to avoid it if at all possible. When I say if at all possible, I mean ask yourself how necessary it really is. So often people think they “need” something where as in reality it is just a modern convenience that is not a necessity but rather a desire. While we all want a washer and dryer in our homes, a Laundromat can suffice to clean your clothes until you know you can pay for a washer and dryer.

Buy it now and pay it later often just means buy it now and pay more later. The money you are saving in the short term often just ends up being covered in the financing in the future. To see what the differences are, you can ask what the total cost of something would be if you purchased it all now or what the monthly payments would be once the financing starts. Be aware of this and if at all possible if you are faced with a big purchase, consider purchasing it outright from the start. You will then only be faced with the one bill you will not forget about and no surprises in the future.

Saving Money on Personal Taxes

poundTaxes are an inevitable part of life. I don’t think any one actually enjoys handing over their hard worked for money to the Government. However, at the same time people recognize that without taxes, the country would end up in some form of anarchy. While to a small amount this sounds like a good idea, it would be anything but. Taxes go towards an abundance of public services. They may not cover all costs but often go to subsidize programs including but not restricted to public forms of transportation, education, legal proceedings, health care, national sport, culture and government media, environmental matters, food inspections, defense of the nation the creation an upkeep of roads, infrastructure etc.

While we agree taxes are a necessary part of life, one also wants to make sure they are only paying what is due and not any more. It is worth finding out what you can legally write off on your taxes to keep as much of your money as you can. There are several ways that people end up paying too many taxes. It pretty much comes down to a lack of knowledge and regulations of the law. Sometimes there could be incorrect tax codes used, sometimes the errors comes on the government side as well, not all overpaid taxes come as a result of the payee. Essentially some incorrect information is used and this ends up costing you. You must first know some basics before filing your taxes.

You need to know what your personal allowance limit is. For 2012-13 the basic amount is £8,105 but this amount changes with age. If you are 65 to 75 this goes upto £10,500 and if you are over 75, there is a small rise to £10,660. You also need to know what can be written off. In order to find this out, it is best to stay on top of the latest tax laws and information. Each year things can change and you will want to know this so you do not make a mistake either in your favor or against yourself. A good place to start is Taxation in the UK from wikipedia. Information here should up updated shortly after it is released keep it current.

While doing your taxes yourself is a practice many do for themselves. A professional accountant for taxes is always a way you can go to limit the chances of errors. They will also remove the stress of knowing if you can deduct something or not. Since they work with this constantly, they tend to know off by heart what is acceptable and what is not. If there ever is any errors and the account made the mistake, you can in turn go after them if there are any fines. If you do find errors mind you, be sure to contact the HMRC as soon as you find out and get the issue resolved.

Why Budgeting Works

18980_20101112Understanding to budget plan your money could be instead challenging, especially if you are just one of those obsessive customers, that appreciates purchasing and getting products that are impressive and new. Realizing that you should establish a spending plan is one of the initial steps in making a change for the better. One of the initial and a lot of difficult actions in budgeting your cash is to really set up the spending plan. Draw up every expense that you have for each month. Do not forget to consist of an amusement or assorted classification. If you do not specified apart cash for these sorts of items, you will discover on your own reducing on other regions in your budget to include the fun things that you want to do. When you have a checklist of all of the things that you will certainly need to pay for, you will should decide how much cash will certainly be set aside for each and every group and where income each of these will certainly be deducted from.

A valuable hint in keeping to your stringent budget plan is to no longer carry cash. We are frequently persuaded to buy products in the check out that are on offer for just a buck or two. This could not seem like a considerable quantity of money, yet can add up when you go to a number of stores in a day. Not holding money can help to curb your uncontrollable shopping of little ineffective items. If you are somebody that favors to just invest cash, just take the amount of money that is needed for your purchases. This will help to prevent you from purchasing items in an outlet that you did not intent on investing in. Acquiring little products can easily toss off your budget by up to 20 or 30 dollars a week.

Buying for a week or two at a time may be a huge aid, as opposed to going shopping for a day or 2, when it does not appear that you are spending a whole lot of cash, so you select up additional included products. Check the revenue advertisements prior to you go to the outlet, to understand exactly what is on sale and to assist you spare cash or use discount coupons. Anytime that you may conserve cash, you are assisting on your own.

Budgeting is a task of self control. Know that you are only damaging yourself if you do not stay with your budget, as you might not have money for all the expenses that you have for each month. By just spending what you initially intended to invest, you will feel much better and have pride in your capacity to spend just what is a need.

Understanding to spending plan your money can be rather difficult, especially if you are one of those obsessive buyers, that enjoys purchasing and picking up products that are brand-new and exciting. One of the very first and many challenging actions in budgeting your cash is to in fact specify up the spending plan. If you do not set apart cash for these kinds of products, you will discover on your own reducing back on other regions in your budget to make area for the enjoyable things that you desire to do. Purchasing for a week or 2 at a time could be a large aid, as opposed to shopping for a day or two, when it does not show up that you are investing a great deal of money, so you choose up extra added products.