A PPI policy is a process that you take out when you have a loan; this covers your payments for a period usually up to two years. This is utilised when you lose your job, are met with an accident etc. resulting in you not being able to work or receive an income to pay off your debt. Although PPI claimsare necessary and beneficial to some extent, there are many lenders who try to sell them as hotcakes to most people who really don’t require them. The main purpose for selling most of these policies is that the financial institutions get confirmed dividends on a monthly basis with fewer complexities. In brief, this is a safety policy that can be utilised in repayment obligations of the loan in case you face job loss or an accident. It helps in shelling out your monthly repayments as per the paper work done. In order to avoid this you can have a look at the below mentioned tips.
While you are making a decision in selecting the firm, there are certain things that try to sway you such as reputation and advertisements, these have to be ignored as you should concentrate on the essential data and choose the right option that suits your requirement. Here are some primary queries that have to be sorted out. They are;
- What amount will be charged? It is the interest up to 25% including VAT, anything exceeding that should be rejected instantly.
- Do they charge a cancellation fee? You are always advised to check this, as there may be a change in your situation.
- Is there any minimum fee to be paid? This should be significantly less than the compensation price.
- Is a credit card fee payment is allowed? If yes, then you will be secured through your credit card provider that offers a certain limit.
- Is there an upfront amount charged by them? If there is then consider rejecting this policy.
There are some more things that have to be known including
- Is there any specific time frame while they are dealing with you?
- The number of hours included for their operation.
- Through what source does the updated news of the claim reach you.
- Will there be any unique customer identity number given to you?
- How can you reach them if you have any queries?
- What credentials should be provided to them?
Not only these, there are some more things that have to be known such as, is your lender FSA regulated at the time of loan process? If the arrears list of the lender includes your account then the possibility for absolute refunding will be really low. However, this should be intimated to you within the terms and conditions of the lender. Ensure to check their presence in the Ministry of Justice database, if they aren’t then it means that they are illegally operating.
About the Author:
My name is Sarah.I am a tech writer from UK. I am into Finance.Catch me @financeport
Many people these days think that living within one’s means is an impossible thing to do especially during these trying times. Unfortunately, it is exactly the same kind of thinking that leads many people to fall prey into a debt trap. But, enjoying life to the fullest without the need to suffer from haunting credit card bills is definitely possible. You just have to avoid the following money mistakes:
Start disciplining yourself and buy only those things that you need. This would also mean that you have to set priorities before entering into a store. Prioritize your needs first before buying something that you want. When you see to it that you already have bought everything that you have to, then that is the time when you buy what you want depending on how much is left from your money.
No budget plan
This is the most common reason why people fail to live within their means. They keep on earning but they also keep on spending. They never take the time to write down how much were spent and how much money were getting into their bank account.
No emergency funds
Many people incur huge debts because something unexpected happened and they were not financially prepared for it. Unfortunately, they have to pay for its hefty interest rates while at the same time find themselves regretting that they never saved enough for an emergency fund. Whether you like it or not, there are really times when your car tires suddenly need to be replaced, you suddenly get sick, lose a job or suffer an accident.
Relying on only one source
A lot of people suffer from huge debts because they only have one source of income. Unfortunately, how much they are earning from this source cannot suffice for their basic needs. Instead, take the time to look for other means of earning money. This is one good way to augment your income and avoid having too many debts to pay.
Maximizing credit card limits
Many people tend to swipe their credit cards for as many times as they can. They always think about maximizing their credit limits without realizing that the interest rates that they have to pay could be more damaging than the principal amount.
Being gullible to sales and marketing strategies
There are so many people who are fond of buying things because they are “on-sale”. They never took a moment to ponder whether the item that they are about to buy is really important. They pick up an item that is on-sale and swipe their card thinking that they were able to save some. Then, they go home and end up regretting because they realized too late that they really never need it at all.
Trying to create false image
Some people buy signature clothes and other expensive items because they think that it will create a good image out of them. However, they only find themselves having difficulty in making ends meet because they are always racing against time to be able to pay their debts.
Inability to search for good deals
If you are planning to go to a grocery store or to buy something at a supermarket think about searching the internet first for really good deals. Avoid going to a place without knowing first if there is a chance for you to use your discount card.
About the Author:
Overcoming credit card debt is not a difficult task, even if it does seem overwhelming; if you plan in the right way and implement the necessary steps then it is very easy to eliminate your credit card debt. You can reduce your debt by yourself by sticking to a realistic debt management plan. Here are a few of the best ways to overcome your credit card debt:
Follow debt management strategies: Consider different debt management strategies to overcome your credit card debt. Make a note of all your credit card debts along with their interest rates and outstanding balances respectively. Now see which one has the highest interest rates and get rid of that one first. Paying of the debts with the higher interest rates first is the best way to save some money on and can easily get rid of credit card debt.
Ask credit card companies: Consider negotiating with your creditors about high interest rates, explain your financial situation. Sometimes they may give some suggestions on how to reduce your credit card debt. Sometimes they may suggest some debt management plans which can be used to pay off the debt without any added interest fees. All your late fees and defaults can be waivered by negotiating with your creditors.
Refinance your credit card: With this method, you take out a single loan to repay all your credit cards. One of the best ways to refinance your credit card debts is by taking out home equity or a second mortgage loan. The common option in relation to refinancing credit cards is to transfer the outstanding balance on all credit cards onto a single credit card. Usually the interest rates on this card will be less and creditors provide you with a higher credit limit. When you have successfully paid this debt back without falling back on payments then this will have a positive impact on your credit card.
Credit card debt management plans: Before considering this option think whether this programme is right for you. These are quite useful when you have a large amount of credit card debt and are unable to repay it. The creditor agency will consolidate your debts from the highest interest rate to the lowest interest rates with flexible monthly payments.
If you run short on money or are faced with any kind of unforeseen financial situation and can’t get cash on any of the traditional loans then don’t worry, try considering
payday loans to meet your urgent cash emergencies. These are short-term loans and are secured until you receive your next paycheque. They don’t require any credit check, it means a person with bad credit or poor credit can get cash on this payday loan.
My name is Alicia. I am a tech writer from UK. I am into Finance. Catch me financeport
Credit card bills are a stubborn lot, destroying your financial stability and the peace of mind. So, what you are required to do in order to get rid of such debt? Avoid incurring further debt. That is possible, only if you actually stop using the credit cards as much as possible. Only if you can put some control over the debt amount, will it be possible for you to become debt free totally. In addition, you should also know that there are various credit card debt help options, which are supposed to help you pay down the credit card debts.
Credit card debt help – Your options
Some of the most common and helpful credit card debt help options, which are supposed to advance the way in which you pay off the credit card bills are:
- Credit card bill settlement – Credit card bill settlement is one of the credit card debt help option, through which you can lower the outstanding bill amount to be paid by you. Thus, it becomes much easier for you to pay down your credit card bills. However, in order to make the creditors agree to your settlement request, it is required of you to miss payments on these credit cards.
- Credit card bill consolidation – Unlike credit card bill settlement, credit card bill consolidation is concerned with the interest rate. In this, it is the interest rate that lowers, and the number of debts you have gets rolled over as a single debt. Moreover, unlike settlement, you aren’t required to miss payments in order to consolidate the bills.
- Credit card bill management – Credit card bill management is more about well managed credit card bills. You can try managing all of the bills of your own, through budgeting and frugal living, or else you can also take the help of a debt management company. They are supposed to help you by negotiating with the creditor on reduction of interest rates, on your credit cards. They also analyze your financial situation, and helps with debt management. You are required to make a single monthly payment to them, and they are then supposed to disburse the money amongst your creditors.
So, these are some of the options which are going to help you pay down your credit card bills. These procedures help in the reducing the stress you are required to take while making the payments on the credit cards. This is because, almost all of these options help you with reduction either in the amount or the interest rate of your debts.
This is a guest post by Grace Ruskin. You can find her on Facebook.
Ways to come out of debt stress and using the debt letter
It is extremely stressful to handle debt and while paying off your debts, you may feel like you are trying to wade through a rough sea. This is because, while in debt you are required to deal with various creditors and lenders and also collection agencies. However, you can make things easier if you deal with all of the agreements through the debt letters. This will help you in simplifying your debt stress. There are various kinds of debt letters that you can sue to obtain agreements while trying to get out of debt.
Getting out of debt and debt letters
In order to get out of debt, you have various options. You can either opt for debt consolidation or debt settlement in order to pay off your debts. Other than this, you can also try to get a re-payment plan with the creditors, or try to manage the debts on your own through budgeting and lowering the expenditures.
If you are considering settling the unsecured debts that you have, you can first talk to your lender about the whole situation, the financial stress you are in and that you would love to pay off the debts even though you are in such a situation. You can then request a settlement on the debt and the send a debt settlement letter to the creditor mentioning about your situation and the amount till which you would want to debt settled. This can act as proof the settlement done too.Find some sample letters on debt below.
Again, if you would want a repayment plan on your debts, you can send a repayment letter to the creditors other than talking to them over the phone. These letters can be used as just a formal request for the repayment plan.
Moreover, if you are able to find out that there are some unknown debts on your credit report, you can try validating these debts. In order to validate the debts or to find out if you really owe these debts, you can send a debt validation letter to the collection agency. As per the validation request, the collection agency will have to first validate the debt before they can continue with the collections.
In case the collection agency fails to validate the debt and still continues to harass you over the phone, you can send them a cease and desist letter. This is a request to the collection agency to stop any kind of collection calls and collection processes as you are not at all related to this debt and you owe nothing to them.
However, another thing that you need to remember is that these letters should be sent through certified mail requesting return receipt or CMRRR.
Any way you put it—economic downturn, down economy, or the dreaded recession—things are tough right now. Companies have frozen or even lowered salaries, and some have even done away with employee benefits in order to stay afloat. But the people who aren’t getting raises, or are having to find their own health care are the lucky ones. There are millions of people out there who have lost their jobs, lost their homes, have lost the lives they were accustomed to living. Maybe you’re one of them, and if you are, that’s a shame. But now it’s time to get back out there and plan for your future.
Everyone knows job hunting can be stressful. It’s not fun, and there’s a lot of it that’s out of your control. The key is to focus on the things you can control. You can only blame the economy for your situation for so long. Are you doing everything you can to make yourself an attractive candidate? Are you making yourself stand out in this extremely competitive market? Sitting at your kitchen table, perusing the classifieds, and stuffing dozens of envelopes with resumes every day doesn’t cut it anymore. Here are some things you can do to gain an advantage over the competition, and get a job more quickly.
Spruce Up Your Resume
Let’s get one thing straight—your resume should not mirror your work history. They’re two different things. No hiring manager wants to read a six-page resume that lists every single job you’ve ever had, and every piece of software you’ve ever learned. Granted, if you’re just starting out, you may not have many jobs to list, so you will want to make the best of the experience you do have. But if you’ve been in the workforce for a while, you need to pare your resume down to one page, two tops.
Not only that, we’re at a point now where many resumes are not initially read by people. Companies run resumes through scanning software looking for certain keywords. If those keywords are not identified in your resume, it goes into the circular file, never to be read at all. The best thing you can do for yourself is to seek out a professional resume writing service. Resume pros know how to edit down a resume while keeping the most important information companies are looking for. They can also optimize your resume for those important keywords so you stand out from the crowd. Anything that gets you past the scanning software and into the door for an interview is a worthwhile investment.
Expand Your Search
You may get lucky and run across a gem in your local paper’s classifieds, but you can’t limit your job search to that page and expect to really get anywhere. Even using job listing Web sites isn’t enough anymore. There are so many other tools out there now, and if you’re not using them to find a job, you’re slacking. There’s no excuse not to when most of them are free.
Start with a LinkedIn profile. You’ll even find job listings there, some of which are exclusive to the site. Open a Twitter account and start following companies you want to work for, as well as industry leaders. You never know when someone will drop a job lead. And Facebook isn’t just for playing games and reminiscing about high school. Smart companies have pages on the site that you can follow and get their updates added to your News Feed. Use your Status to let your friends know you’re looking. If none of them are hiring, they may know someone who is. Just remember, passively following on any of these sites isn’t enough. You have to engage people to build a network that can produce job leads.
Become Your Own Boss
Starting a company used to mean getting a small business loan or some investors, finding office or warehouse space to rent or buy, and then filling that space with office furniture, equipment, and people. It was expensive, with a high failure rate, and an even higher stress rate. Now you can start a business for roughly ten bucks.
Okay, that’s oversimplifying it, but it’s not entirely inaccurate. You can buy an Internet domain for about ten dollars, and have a Web site set up in about an hour. You don’t need to start with an expensive designer or programmer. You can get going with free tools such as a blogging platform, a free blog theme, and a handful of plugins. And you don’t necessarily have to be selling an Internet-based service, either. Start a site for your jewelry-making business, or your lawn care service. Whatever it is you decide to do to either follow your passion, or just make ends meet until you find another job, the barrier to entry has been lowered dramatically by the Internet.
Above all, don’t give up. But don’t just sit around waiting for things to change, either. Take control of what you can, let go of what you can’t, and build your own future instead of waiting for someone to do it for you.
Leslie Williams is a writer for Jobfox Resumes, the largest resume writing service online. She specializes in using social media to connect to the right job.
Earning Tax Credits for Life Insurance
The main purpose of a life insurance policy is to provide financial stability after the death of a loved one. Aside from that fundamental benefit, some tax benefits can come with certain types of life insurance policies. Dependents could reap these tax credits when they receive benefits, or the insured individual can use them before the insurance policy pays out. Such policies typically benefit the very wealthy, helping them to minimize estate taxes. Because these policies carry a much higher premium cost, they rarely make sense for those with smaller incomes. Those individuals typically fare better with term life insurance.
Basic tax benefits that go along with every type of policy are the policy proceeds. When the insured individual dies, the beneficiaries receive any life insurance payouts tax-free. The proceeds are tax free regardless of the type of life insurance policy. People who purchase whole life insurance can also benefit from a tax break because the policy’s earnings are not taxable for the duration of the policy. This means that the investments made by the whole life insurance policy will not be taxed until the policyholderâ€™s death and the disbursement of the earnings to beneficiaries.
Cash Value Accumulation
One of the possible tax credits that people may not be aware of is the cash value accumulation. When the single premium value of the life insurance policy matches or exceeds the amount of the potential payout, there are no taxes due on the payout. This tax advantage only applies if the premium value is the same as or more than the overall benefit amount. If the single premium is less than the value of the policy, the earnings collected through premium payments do not qualify as life insurance benefits and will be taxed accordingly.
The federal government has placed specific guidelines on the amount of money paid toward a life insurance policy before the policy qualifies as life insurance. If the payments meet the appropriate guidelines, the policy qualifies for tax-free status. The general guideline states that the amount paid into the policy cannot exceed the guideline level premiums or the single guideline premium costs. That means the insured individual cannot pay more in premiums than the policy cash value.
The corridor test is a process that evaluates the amount of money paid into the policy through premiums compared to the cash value of the policy. To continue to qualify as life insurance so that there will be no taxes assessed upon payment of benefits, the amount of money paid into the policy through premiums must be a specific percentage of the overall value of the benefits. The insurance corridor is the amount of money included in the death benefit that premiums have not yet covered. That balance of benefits would be tax-free.
Jessica Bosari writes about financial planning and life insurance for TermLifeInsuranceNews.com. The site offers news, advice and life insurance information for consumers.
Planning for your future is one topic that is being neglected these days due to our current economy. It’s something that is so important yet more times than not one of the first things to go out of the budget when times get hard; or even neglected from the very beginning. Yes, people are trying to save every dollar they make. Yes, times are harder now than they were, say two years ago. And yes, it’s important to be frugal with your money. But it’s also just as important to continuing planning and saving for your future.
Here are a few suggestions to help you stay on track:
1. Take a close look at your budget. What do you include in your monthly spending that is not absolutely necessary? Eliminate those items first before you stop contributing to your retirement account.
2. Get a part-time job. If at all possible, maybe it’s a good idea to search for a second job where you would only need to work for a few hours here and there. That way you can still contribute whatever money you already set with your current employer and are making up the difference/earning a little extra with the part-time job.
3. Look at your goals. Sometimes it’s helpful to re-evaluate what you ultimately want in your future. Do you want to travel? Do you want to live comfortably? Do you want to be able to help your children out financially if you can? (not going overboard, of course) If your goals are on your mind constantly it will help you focus and stay on track in the long run.
Aaron and I are still years and years away from our retirement age, but we already have ideas of what we would like to do. We hope to live comfortably and be able to do things that we maybe missed out on earlier in life, like traveling to exotic locations. They are vague ideas now but it’s a start. They will only be more concrete the farther we move along in life. Because we have solid goals in front of us at all time it’s an encouragement to stay on track and continuing saving for the things in life that we value. Our money is tight just like everyone but we are still determine to save a considerable amount of money each month; which we do.
I encourage you to keep plugging away and to look positively at your future and the things that you want out of life. Don’t be discouraged about your current situation. Use this time to truly motivate you to move towards your goals and dreams. Once you do that, get a game plan together to do whatever you can to reach those goals and have a comfortable retirement.
A huge trend of our culture has been to constantly compare your house to your neighbors. Or, your car, lawn mower, kids…education, etc…
What about debt? Bankruptcy? Is it OK to try and achieve the same level of insolvency that your neighbor has? We all know the answer to that question. So, how can you avoid getting stuck in the same trap that your neighbor has? Read on…
1. Don’t Have a Car Payment
Did you know that a majority of American‘s believe that a car payment is just a part of life? Yup, they do. And you know what, I don’t blame them. Generations have embedded this thought process into our current and most likely future generations. BUT, just because everyone else has a car payment DOES NOT mean that you need to. Buy a car WITH CASH and win. Get a beater car that you can AFFORD and drive it until it won’t anymore. You’ll save yourself thousands in the process.
2. Have a Rainy Day Fund
On a normal day, you wouldn’t take a long walk outside while it’s raining, so why should your finances be any different? I don’t know, but the average savings account today sucks. Plan and simple, folks just don’t know how to save. So you can be wiser just by saving a percentage of your income each month. Start with saving $1,000 to be used for EMERGENCIES, then move to saving 2 to 6 months of living expenses. That’s the best umbrella money can buy.
3. Get on a Written Budget
Yup, a budget. I know they aren’t fun to get started, nor are they too much fun to stick to each and every month, but they will save you boat loads of cash if you work at it. As Dave Ramsey says, spend every penny on paper before you even have it in your checking account. This way you don’t even give yourself to spend money on things you shouldn’t.
4. Cut out the Crap
Examples of crap: cable TV, eating out multiple nights every week, vacations you can’t afford, etc…Once you have a budget written out you’ll begin to see areas of it where you can probably cut to help save you some cash each month. This way you can beef up that savings account, or if you have debt to pay off, get crazy about paying off that debt. Look at your expenses each month and create two categories, NEEDS and WANTS. If you’re really good and crazy, get rid of the WANT category and roll that money into savings or debt payments.
5. Cut up that Plastic
Another painful one for folks, but a great way to get ahead in your personal finances. Cut up the credit card and if you carry a balance pay those suckers off! Start paying off the lowest balance and work up through the highest. You’ll be surprised how much extra cash you have laying around when you don’t have payments to make anymore! So get cut’n and start pay’n!
Hope these 5 tips help you avoid the ditch your neighbor is in! Any other tips? Share them in the comments!