Monthly Archives: June 2008

What is an Annuity and what are its attractive features?

Annuity is an agreement between one person or organization with another person or organization to make a series of payments. In general terms, it is a contract between you and another organization like a life insurance company, a charity or a trust where you continue to make a series of payments for a specified period of time.

Annuities can be classified under different categories:

  • Nature of the underlying investment – fixed or variable.
  • Primary purpose – accumulation or pay out. It can be differed or immediate
  • Qualified or non qualified tax status
  • Premium payment arrangement. It can be single or flexible premium.

The attractive features of annuities are as following:

Tax deferral on investment earning: There are different types of investments that are taxed every year. There are certain investment earnings – capital gains and investment income in annuities that are not taxable until you withdraw money. Unlike the 401(k)s and the IRAs, you can put any amount into an immediate annuity. In the same way, the minimum withdrawal requirements for annuities are more liberal than they are on the IRAs and the 401(k)s.

Protection from creditors: The amount invested in Annuities are protected and if you have some creditors under some kind of payment plan, they cannot touch your money invested in annuity according to the state laws and court decisions.

An array of investment options, including “floors”: There are many annuity companies that offer various kinds of investment options. If you invest in a fixed annuity, you will have a specified interest rate credited like a certificate of deposit. If you buy a variable annuity, your money can be invested in stock or bond or mutual funds. Recently, annuity companies have created various types of floors that will limit the extent of investment decline from an increasing reference point. For example, there are some kind of annuities that guarantees a certain amount of value on your investment on its most recent policy anniversary.

Tax free transfers among investment options: There are no tax consequences with annuities if you change how your funds are invested. Many financial advisors recommend rebalancing of funds where you shift your investments periodically to return them to the proportions that you determine represent the risk/return combination most appropriate for your situation.

Lifetime income: Certain annuities can covert an investment into a stream of payments that will last till your death. The money is generated from your investment, investment earnings and a pool of people in your group. It is assumed that not all the people in the group will be able to live as the actuarial tables forecast. This allows the annuity companies to guarantee you a lifetime income.

How to qualify for a no teletrack payday loan?

Many people consider a no teletrack payday loan to meet their urgent cash requirements. Traditional loans can take a long time for getting approved and by that time, your need to have urgent money may already have taken a severe turn. An instant online paycheck advance can serve your immediate requirements, but be aware that you will be paying a high cost for this service. Now, you may like to know more about these online personal advances?

Payday loans are money advances often offered to people who are doing jobs and get their paychecks. The concept of these loans has been introduced keeping in mind the paycheck to paycheck living conditions of middle class people in employment. Sometimes, these people have to arrange funds urgently in a short notice, especially in the middle of the month. So, it becomes pretty hard when a situation like this arises. Sometimes, family members or friends offer a helping hand but in most of the cases, the luck seems to be tough because they themselves are in the same boat. In fact, it is pretty difficult to arrange extra funds in the middle of the month. This is the time when most people rely on paycheck advances.

  • What’s The Approval Criteria?

There aren’t too many conditions to get approved for a teletrack payday loan. You can easily get approved for the loan if you meet the following criteria.

  1. You must be a legal American citizen over 18 years of age.
  2. You must have a regular job that pays at least $1000 a month.
  3. You must have an active checking account in a bank.

You can qualify for the loan if you can fulfill these requirements. There’s no need to put any collateral to get a no teletrack paycheck advance. You also don’t need to send any documents for verification purpose. So, you will get the payday loan transferred to your bank account within the next business day.

  • Bad Credit Quick Cash Loans:

People with bad credit history often consider these kinds of loans to be their best solution to their urgent requirements. These loans are for a very small amount ($100-$1000 generally) and are generally lent for just 1-4 weeks and are secured against your paycheck. The lenders offering such loans cover their risk factor by charging exorbitant interest rates from the borrowers. These rates can range anywhere between 15% to 30% for 2 weeks. There is no credit check or teletrack required on applications for these advances.

If you are considering taking a no teletrack payday loan and are 100% sure to pay back within the next payday, then only you should opt for such high interest advances. Also, you should make sure that you don’t get habitual in borrowing these loans. These cash advances come at very high interest rates from the traditional loans and should be considered only when you don’t have any other options left and the emergency is just unavoidable.

Getting unsecured bad credit loans

Every business needs cash to operate. During time of prosperity, when sales are moving high, every business generates enough income to keep their business thriving. However, for many businesses, if the sales goes down, it can create a cash deficit. Unless there is sufficient cash reserve, you will need to turn to lenders for the money to keep your business afloat.

While most lenders are willing to lend money to established businesses with solid credit history, it is entirely a different story why new businesses haven’t been able to establish their credit history. It is also difficult for businesses that have run into credit problems in the past. These businesses are left with trying to find unsecured bad credit loans.

There are a number of lenders that offer unsecured bad credit loans to the needy people. Business owners should be careful enough and do their thorough research before signing any loan documents. Unsecured bad credit loans come at very high interest rates than conventional or secured loan. Borrowers must understand the repayment terms of the loan and the current APR. Lack of thorough research may result in paying higher interest rates and put the business in a bad financial position for years to come.

There are two forms of credit that are available to business owners; a business loan, and a line of credit. With a business loan, the borrower determines how much money they will need, and that amount is loaned in a lump sum payment. Interest is accrued on the entire amount of the loan, beginning the time the loan is made.

With a business line of credit a total amount available is set up, and the business owner will only borrow the amount needed at that time. As new cash needs come up in the future the owner can withdraw additional funds from the line of credit, just like withdrawing money from any other bank account. With a line of credit interest is only charged on the amount that is actually withdrawn from the account. This is a great option for newer businesses that will need periodic boosts to their cash flow as they attempt to get established. Money is available in smaller amounts, and they keep their interest payments at a more affordable level.

The methods of obtaining money may be different depending on the lender. Some are structured like more traditional loans, while some are based on credit card transactions. The lender will “purchase” a certain percentage of your credit card sales, and that percentage will go to the lender until the amount of the loan is paid off. While classified as an unsecured loan, it is in reality secured by the credit card transactions.

In a business that requires cash flow, it is critical that your business is able to get the money it needs, when it needs it. Regardless of whether you have a poor or un-established credit history, there are unsecured bad credit loans available to those who look. Do you know what is meant by creditos? This is a Spanish word which means loans.

Auto loan calculator

When you apply for a car loan from any potential lender, they will review your past and current financial history and figure out if you qualify for the loan. They will set a monthly repayment plan for you and you are expected to pay the installments within each due date. The monthly installment set in the loan program is based on the formula used for years. It is universal for all loans and can be used as an auto loan calculator, just like the ways it’s done when you apply for a home loan or any other type of loan.

The computation of the monthly installment is done after entering some data on the basis of loan amount, existing interest rate and the duration of the loan.

Once you know all the elements of the auto loan calculator, you will be able to set a monthly payment plan according to your affordability. The interest rates will be charged on the principal amount multiplied by the number of months by which the loan can be paid back. If the principal amount is higher, it is natural that the monthly installments will also be set higher. For example, if you are weighing your options on whether to buy a new car or a used car, it is expected that the new car will cost more than the used car. If you decide to buy the new car, you have to borrow a high principal amount from the loan company than what you might have borrowed if you thought to buy a used car. If you can manage with a used car, you will borrow less principal amount, set a lower monthly repayment plan and fulfill the need to have a car.

Another way to manipulate the auto loan calculator to your own advantage is to lengthen the terms of the loan and repaying it over a longer period of time. Be aware of the fact that you will be able to set a lower installments if you increase the duration to pay back, but you will also be paying interests on the principal amount for that extra number of months for which you stretched the loan.

You can also get lower monthly payments as per the interest rates charged on the principal amount. You will be able to negotiate with your lenders to quote you interest rates as per your credit rating. For example, they may offer a better interest rate on a new car than on a used car, or a better interest rate on a longer loan. Whatever may be the deal, you have to think and figure out where you can save the most of your money. When the lenders are offering the loan, it is natural that they want to meet up the cost of running their business and make profit. They have done all the mathematics and the kept the calculations in their favor. The more you know, better your chances of tipping the scales in your own favor and get the best deals.

Get out of debt

If your total debt repayments exceed 20% of your income after paying mortgage or rent, then you may be in a serious financial problem and you need immediate help. There are different ways by which you can take care of the existing situation and become debt free.

To get out of debts caused by excessive credit card usage or unexpected expenses, consider the following alternatives.

  • You may seek credit counseling
  • You can opt for a do it yourself method.
  • You can enroll in some online debt consolidation program
  • Or consider filing bankruptcy.

Many people think that credit counseling works on the same principals like debt consolidation or debt management program, but actually it is much more than that. Credit counseling is about educating consumers, making informed decisions, do a proper planning of your future keeping your present situation in mind. Putting everything under one umbrella, you get a perfect debt relief program.

The DIY or “Do it yourself” is a self designed program where you negotiate with your creditors on your own, paying off the debts with the highest interest rates first. Many people get a second job to have an extra source of income and contribute towards paying existing debts. While this may certainly be the most effective step to boost your credit ratings, one requires a lot of strong will and self discipline to follow this approach to the completion.

When you enroll in an online debt consolidation program, you are able to combine all your existing debts under one repayment plan with your creditors through the debt consolidation company. The basic advantage of this type of program is that your debt consolidation company will be able to reduce the interest rates with your creditors and set up a lower repayment plan. You make one monthly payment to the debt consolidation company and they disburse the payment to all your creditors in the program. When you are enrolled in the online debt consolidation plan, make sure that you do everything to stick to the repayment plan set by the debt consolidation company. Just in case, if you miss a single payment, your creditors will no chance and they will raise the interest rates back to where it was. You should be mentally set up before opting for this debt relief program. Otherwise the next best option will be to go the debt settlement route or file for bankruptcy.

Do not let your old debts hound you

There are so many scams around that are separating people from their hard earned money. The best way to hit the consumers in dire need by the scam artist is to trigger on his confused mind. They will fade the difference between a legit debt and an illegitimate debt, irrespective of the fact whether you owe it or not. If you are not going to pay the amount that is asked from you, they will use all dirty and scary tricks to get the money from you. Be aware of the federal laws and the consumer rights. You are not responsible to pay a debt that is not yours. In cases of too old debts that are well past the statute of limitations period, you can’t be taken to the court unless you have made a recent payment.

Collection agencies use intimidating tactics to recover the money from the consumers. If you are been called by a collection agency, make sure that you get the details of the debt before working out any payment arrangements. Don’t commit to pay something until you have verified the legitimacy of the account. They can record the phone call secretly and might use it against you. You will feel scared and send your hard earned money.

It is also possible that you will see one account on your credit report that does not belong to you. You are being called by a collection agency to pay this account within a certain date. Ask the collection agency to validate the debt in writing. It is your legal right to ask the details of the debt in writing. The collection agency must have all the details from the creditor and verify the account. If you are a victim of identity theft, and this account was misused by someone using your personal information, you should be able to get the item investigated by the credit bureau. They will verify it with the information provider and if your dispute is found to be correct, it will be removed from your credit copy. Then, you don’t need to pay to anyone collection on that account.

Be aware of the federal laws as mentioned in the Fair Debt Collection Practices Act and Fair Credit Reporting Act. If you are an informed consumer, you will never be scammed by anyone asking money on the disputed accounts.