Online Financial Tips

Archive for August, 2011

For many managing finance is not their cup of tea. Prodigalities and recklessness in saving money and resources often lead us to borrowing. And little to wonder, the increased borrowing habit lets us to take several loans, and fall deep under heaps of debt. Debt consolidation is one way which helps borrowers to pay off all their existing loans in one single payment. Basically, this loan pays you the sum of amount that is similar to all of your previous loans. Consolidation of debts can be done by availing secured loans and also unsecured methods of loans.

Borrowers who are willing to avail debt consolidation need to understand the kind of loan they have to take. Between the two available methods of debt consolidation – secured and unsecured loans, it is important that you pick the best one suiting all your financial needs. An unsecured loan will require no collateral to be kept as security. Due to absence of collateral, you are asked to pay higher interest rate. While consolidating your loans through secured loans, you avail more benefits than what you avail through unsecured way of borrowing. Though you have to put your property as collateral, yet it has plenty of benefits.

Best suited for home-owner, secured method of debt consolidation puts borrowers at several advantages. The best you will like in it is its lower interest rate. As the collateral security is present in the deal, you will avail this Secured Loans on lower interest rate. Moreover, as the loan is of secured typed, the repayment period is going to be longer. The long repayment period cuts your monthly installments smaller, and you have to pay the amount into small monthly installments, which ease out your financial burden. Secured method of debt consolidation is useful for those borrowers suffering from bad credit record. It doesn’t only help them paying their debt off, but also it gives them an opportunity to improve their bad credit score.

Bad credit auto loans are the best for people who can’t get their loan approved due to bad credit. Most of the lending sources like banks and credit unions do not lend to people with low credit scores and to those who have filed for bankruptcy or had vehicle repossession. But what do you do if you have credit problems and you desperately need a car that can get you from one place to the other? Well! It is not easy but first you need to prepare yourself for a fact that though there are companies with whom you can get a car loan with bad credit but these loans are sure to come with high interest rates.

The first step is to purchase a car that is not too expensive because with it you can decide that you have to borrow less money and at the same time you will also have manageable installments, too. The next step that comes is looking for a lender that can provide you bad credit auto loans. By going online you’ll definitely come across plenty of lenders that will provide you these loans. But you need to look for a lender that has low interest rates and not only this you need to read the terms and conditions, too. Call them up or drop an email in case of any queries. Some of them also have live chat. Apply for the loans only when you are through with the procedure and the rates and services.

Poor credit auto loans are easily available for people with bad credit but go for them only when you think you can pay the installments on time.

There is no question about it, the Internet has opened up a whole new array of services and online savings accounts are a part of it. Online banking, investments, and online savings accounts have taken off over the past few years. Why? What has fueled this explosion? Actually, there is no one single reason, it’s a combination of several that include:

Convenience. You’re able to fund your online savings account at any time during the day or night. There is no need to spend time fighting traffic and wasting $4.00 a gallon gas trying to rush off to the bank to make a transaction.

Simple to set up. Starting an online savings account can take all of 15 minutes to get up and running.

Much higher rates of interest paid out. Online savings accounts traditionally pay a much higher interest rate than your neighborhood bank will pay out. Why? Because, there is little overhead with an online bank.

How To Find The Right Online Bank One of the easiest steps in finding an online bank would be to see if the bank you are with now offers all of its services over the Internet. Even if they do, it would be wise to do a little comparison shopping so to speak. Do an online search for Internett banks that offer online savings accounts. Right out of the box I can list 3 very well known banks that offer all types of high yield accounts:

HSBC

Bank of America

Chase Bank

In addition to offering a variety of savings accounts and high yield investments, they also have top notch security measures in place. You should keep security in mind when searching for an online bank.

How Do You Open A New Account? When you find the right online bank to open up a new savings account with the process is pretty straightforward. You’ll need to decide if it will be an individual account, or a joint account. You’ll then be asked for your personal information and your online savings account will then be your checking account.

Next, the bank will need to verify your information and your checking account by doing a small test deposit. They require you verify the deposit amounts to finish the verification. This will take less than 48 hours.

Now that you’re account is verified you can make an opening deposit. You will also receive an information package in the mail that will have your ID numbers, as well as an ATM card to use in making withdrawals.

That’s it, you have now opened up your new account. With all of the added conveniences and higher paying interest rates, an online savings account just makes good financial sense.

There are lots of misconception about long term care and the insurance policy that provides coverage for it. These misconceptions come with grave consequences and because of this we’ll go through some misconceptions that are often touted as truths…

1. Health insurance and Medicare will take care of your long term care needs? Yes, depending on your situation and your policy terms, you’ll get coverage for some time — Typically for the first few weeks and nothing more.

2. But I’m young. Can’t it wait until I’m at least 50? Yes, if you do NOT have a history of health conditions that trigger the need for long term care in your family. No, statistics show that about 40% of those on long term care are between 18 and 64.

Most people require long term care because of age-related issues. However, things like an auto crash, a bad fall, sports injuries, surgeries and such could also make a person require such care even though they are still young.

3. What if I want to self-insure (That is, pay out of my pockets) if I ever need long term care? Yes, this should be your position if you are a millionaire. In that case you’ll just treat it like all other bills. But before you choose this route be aware of the fact that the average annual cost of long term care is about $70,000. If you and your spouse require long term care it will cost you $140K.

And with inflation, the rising cost of care and the increasing numbers of those who need this kind of care, the cost might as well be double by the time you need this policy.

4. But won’t Medicaid take care of those who can’t pay for long term care? Yes, it will pay but then you have to be poor enough. This might mean that you’ll lose some of your investments before you can become eligible.

But don’t let anyone bother you with this policy if you don’t have any way to pay for coverage, no assets to protect, or don’t have a family to leave your assets.

5. Long term care insurance is too expensive. No, it isn’t being without it is. It will cost you between $1,000 and $6,000 per year (depending on your profile and what you choose) to get this policy. However, it will cost you $36,000 to $84,000 yearly if you choose to pay from your own pockets.

If you compare these two, you’ll see which is too expensive. Furthermore, you can get very low rates by getting and comparing quotes from a wide range of insurers. This simple exercise will help you save a few hundred dollars if done right.

There are numerous credit card processing companies to choose from, each offering different features and fees. Choosing a company to process your customer’s credit card payments can be a daunting task, and sometimes you’ll experience difficulties both looking for a merchant account provider and then afterwards- if you make the wrong selection!

Many banks will deny small business applications for merchant accounts because they don’t want to take the risk. Most small businesses end up going through third party providers who actually get the merchant account on your behalf; then apply their own rate structure to your transactions.

If you operate an online business, you’ll need a shopping cart program of some kind- which must work with the system you use to process credit cards online. Unfortunately, if you go with a third party shopping cart rather than a custom written one it may not work with all credit card processing gateways. You really need to be sure that whatever shopping cart program you use on your web site works with the merchant account you ultimately end up using to process customer payments.

Accepting credit cards is not free! You pay the third party merchant account provider (or the bank if you are able to secure your own account directly with a bank that provides it) will charge you fees in exchange for the ability to accept credit card payments. The fees and rates you pay will vary depending on many factors, including how long you’ve been in business, the type of business you operate, your credit score, how much of your sales are processed by phone versus online, and the amount of credit card sales you process each month.

Some providers charge an annual fee in addition to a fee per transaction, while other providers only charge a percentage of each transaction processed. Typical rates for small businesses accepting phone and mail order payments are $0.10 to $0.30 plus 2 to 3% of the transaction amount. If the merchant account providers you are looking at want to charge over this percentage, be sure to check out a few others to see if you can get a lower rate before signing up. Sometimes, your credit rating will result in your having to pay higher fees- but it’s worth shopping around a little to see if you can get a lower percentage rate per transaction.

When you’re shopping companies looking for the best merchant account provider, make sure to compare all of the fees to see how much you’re going to end up spending per each sale. You should also take into consideration what the application fee is (if any), how much you pay annually, how much you must spend on equipment needed to set up your account, and whether or not you must maintain a monthly minimum of sales volume.

Also compare how each merchant account provider allows you to withdraw your money- can you do it whenever you want or do you have to do it at specific times of the month or year? How long will it take to receive your funds once you’ve requested a withdrawal or transfer of the money? How does the provider handle charge backs?

Always read all of the forms and contracts associated with merchant accounts before you sign anything. Understand the terms for cancellation and what conditions the provider can cancel your account, as well.

The process for applying for a merchant account varies depending on the company, but you may be asked to provide a photo of your office (even if it’s in your home) to verify you are in the location you say that you are. Some companies will want to send a representative to photograph your place of business. Occasionally, you’ll be asked to provide a DBA or business license, your tax returns and profit and loss statements.

Internet banking works in a similar manner to traditional banking, the major difference being the way one is making payments, accessing his account and personal details, and reconciling statements. Rather than visiting the local branch of his bank, the customer uses his computer to complete transactions. Internet and traditional banking have their pros and cons to consider. The choice of online vs. brick-and-mortar banking is often based on one’s lifestyle and priorities.

As a major advantage of internet banking, the customer can accomplish multiple tasks in the comfort of his home. Efficiency is what makes online banking attractive to customers: they can pay bills, move money between different accounts, check multiple accounts, and much more. Banking is fast and saves customers valuable time. Transactions are completed in seconds and one can print out the receipts for his personal records. The customer may access his account at any given part of the day, even during weekends and holidays. Moreover, the online account may be accessed from any place around the world, provided that internet connection is available.

Online bank accounts make banking expedient, convenient, and inexpensive. Many banks charge fewer fees for the online banking services they offer. Furthermore, banks have higher interest rates on savings accounts and certificates of deposit, and offer more financial services and products. Customers don’t need to buy envelopes and stamps, run to the post office at the last minute, and risk being late on their payments. Monthly bank statements and bills can be accessed electronically. Finally, online banking employs sophisticated tools that help manage one’s money and accounts with ease. Despite increased security measures and the availability of anti-virus and anti-spyware programs, identity theft is still a concern. Other threats associated with online banking include phishing and hacking of online accounts.

Time is among the precious commodities, especially for multi-taskers. On the other hand, some people prefer to visit their local bank and interact with the teller in person. Customers can turn to the bank’s special account representative or even to the bank manager. Clients are physically present when cash is handed over to them and when they place valuable items in their safety deposit boxes.

When customers hold their money in banks, they expect to have them available when required. The Federal Deposit Insurance Corporation offers coverage of up to $100.000 if banks cannot cover their clients’ accounts. Most banks have increased the level of security by installing more surveillance cameras and hiring a larger number of security guards. With traditional banking, customers are better protected against identity theft. However, security is still a concern with traditional banking. While criminals cannot hold a gun to one’s personal computer, they can rob a bank the traditional way.

Inconvenient locations, fixed schedules, and more limited financial services are some of the disadvantages associated with traditional banking. In contrast to internet banking, customers opting for traditional banking services need to draw money before using it.

The FDIC (Federal Deposit Insurance Corporation) pays up to $100,000 of coverage, in case that a bank cannot cover its accounts (both online and traditional). However, protection from identity theft is an aspect of banking that traditional banks take better care of.

Disclaimer: This article is provided for educational and informational purposes only and should not be considered a substitute for professional and/or financial advice. The information found in this article is provided “AS IS”, and all warranties, express or implied, are disclaimed by the author.