Professional Money Management

By Greer Lean

Many of us cringe at the thought of budgeting, some of us may even feel ill to the stomach! But it doesn't have to be hard; sometimes all you need is a helping hand. But where do you start and what advice should you seek? There are a range of options available for all different issues and a whole wide web full of information out there too.



Let us consider the situation of a fellow we’ll call Bob. He is 27 years old, works for an insurance company, drives a new car, lives in a nice apartment close to downtown, and likes to go out with friends for drinks and dancing. He is also up to his ears in debt. He has no savings. Many months he runs out of money before he can pay all his bills, and he’s been making up the shortfall by running up charges on his credit card. His cards, however, are now near their upper limit and his bank is not allowing any more charges. Bob is struggling to even make the minimum monthly payment, so he is having trouble imagining how he can ever pay off his credit card account.



Bob undoubtedly needs help with his finances. He seems to be incapable of drawing up and sticking to a budget, and he doesn’t realize the perils of running up high interest long-term debt. He is living way beyond his means, and he is on a sure path to bankruptcy unless he seeks help soon.



Does Bob’s situation describe your life as well? No, hopefully, but you may be a good candidate for financial help as well. Anyone who has tried to place their spending on a budget and repeatedly failed, causing them to fall farther and farther behind in their bills and grasping for easy cash injections, should consider trying to find some help.



What sort of help should you seek? That largely depends on the type of help you need. If it is just assistance in figuring out your budget and getting some basic advice you may consider hiring a bookkeeper or accountant to sort out your finances. If you need a loan consolidation to rid yourself of multiple high interest loans your bank might be able to help. If you need more complex help, such as negotiating with your creditors, you might seek the services of a debt relief organisation. In severe cases, you should seek professional legal advice.



If all you need is information, the world is at your fingertips. Just look on any good search engine for help on budgeting or debt management and you will be swamped with information. Much of it is good, much of it is redundant (good advice tends to be the same, no matter the source). But be careful for scams and do not give out any personal financial information until you are sure the organisation can be trusted.



About the Author: After helping Australians out with payday cash advances for over two years, Payday Online know what matters. We welcome everyday Australians to use our service at their convenience, for a quick, safe and hassle free cash injection in less than an hour. Check us out today at http://www.paydayonline.com.au



Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=320669&ca=Finances

Getting Rid of Your Bad Credit

Getting Rid of Your Bad Credit
By Tom Tessin

For people, who have the tags of bad credit holders on theirnames, it is necessary to do away with bad credit immediately.Bad credit is an obstacle in the way of applying and beingeligible for loans. Many people unintentionally default on themonthly payments, due to which their creditors rank them as badcredit holders. Hence, it is necessary for defaulters to abideby the terms and conditions of loans to do away with bad credit.

What to do?

Always keep handy, a copy of credit report to know the statusof your credit with respect to late payments, liens andpenalties, if any. When you apply for loans, it all depends onthe credit rating you have on the credit report. If it shows inyour favor, you stand the chance of being approved for futureloans. If it does not, you need to find where you went wrong andtake steps to rectify the same.

Further Information:

Do away with bad credit before creditors take any legal actionagainst you. When you attract bad credit to the credit report,your chances of applying for loans are less. After all,creditors do not like to lend a financial help to someone, whosecredit history shows negative signs of recovery. Each time youapproach lenders for help, they suspect your character owing tothe bad credit. Even if they decide to lend you a loan, they mayask you to produce certain documents to prove your residentialand personal identity.

To complement your grief, they may raise the interest rates andrestrict the period of loan repayment. Further, they might levyextra charges once you cross the predetermined time of monthlypayment. Thereby, it is good for borrowers to decide over thepayment plan. The simplest way to do away with bad credit is topay off the dues, as they come by and manage the creditthereafter.

Talk with your creditors

Have a conversation with your creditor to find easy ways to fixthe bad credit. At present, many creditors understand the plightof people. They have come up with ways to help them settle theirdues in convenient ways. They may suggest debt consolidationmethod, which involves uniting the amount of defaulted debtsinto one figure, so it becomes easy for you to clear the debtsat once. Remember, once you attract the bad credit tag onto yourname, it remains for years and is difficult for you to overcomeit easily.

Overview:

Creditors look upon their customers with dignity and respect.They do their best to help the borrowers in every possible waythrough their services. It is your duty to make payments on timeand remain respectable in their eyes.

Any creditor will not tolerate default on the paymentsconstantly and without stating reasons for the same. Manycreditors, in recent times, work on the principle of utmost goodfaith, which means the borrower has to prove fair past dealingsbefore the new transaction begins.

About the Author: Get rid of your bad credit with a securedcredit card at http://www.findsecuredcards.com/ where you canalso find more of Tom's work.
Source: http://www.isnare.com/
Permanent Link: http://www.isnare.com/?aid=287134&ca=Finances

Stop Dodging Your Creditors

Stop Dodging Your Creditors and Seek Their Help by Ajeet Khurana

By the time I had graduated from college, I found that I was to pay a huge burden of debt. I knew that with my college degree, I would be able to get stable employment as well as a hefty salary. Then I was offered my very first credit card, without my even looking at the interest rates and other hidden charges.



Within two years of working as an executive assistant, I was already drowning in credit card debt and have not been able to pay off my mortgage and insurance premiums. I even coined a nickname for myself, debt delinquent.



Many a time, we choose to ignore calls from the lending company. If they can't reach you or find you, you're safe, right? WRONG! This tendency to avoid the lender is a bad one as one loses out on possible ways of fixing one's credit situation.



If only I had taken the time to talk to any one of my creditors, I would have been given a chance to pay them off instead of filing for bankruptcy. Sometimes you have to learn things the hard way.



Lending companies will want you to pay them back. Your bank will want some of the money that you spent on your holiday sprees. You could talk your lending company into providing you with some means that will make repayment easier. They are not as evil as you think they are. In fact, lending institutions can save you from falling into poverty -- or bankruptcy at least.



Your credit card issuer will mostly likely give you amnesty, if you promise to pay them back with a span of time. In fact, you could even try to get a reduction on the interest that you are shelling out every month. By talking to them, you will have a lot more options on how to settle your balance than by hiding out in the mountains until you think they have surely forgotten about you.



But during this time, your credit card accounts might be closed as they do not want you accumulating more debt while trying to pay off your balance.



If you have unpaid loans from various institutions, they will almost certainly advice you to join a debt management program or refer you to a debt counselor. If you are currently struggling with a major burden of debt and have multiple loans to pay, go in for debt consolidation.



With consolidation, all of your debt will fall under one loan. You not only get lower interest rates but also decreased monthly payments. Do not worry so much about your credit score at this time, focus on paying off your debts. Once you have managed to settle your debts, you can turn with full steam on to the job of rebuilding your credit. Just one point to remember is that student loan consolidation works differently and it does not affect your score.



Reaching out to creditors gives them the impression that you want to pay them back and you're willing to do it on terms that are beneficial to both parties. This is a good way to impress upon potential creditors that you made the effort to repay your debts despite your financial troubles.


Get debt help and debt relief. While you are at it, find out what is an IVA. Be a responsible borrower.


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Your Credit Report Score and What You Can Do About It

Your Credit Report Score and What to Do About It
By Douglas Michaels

Paying on time

Late payments on regular monthly bills will quickly reduce your credit report score and should be avoided at all costs. Bank loans and credit card debt are probably the easiest to miss paying as they are not as life-threatening as forgetting to pay the electricity or gas bill. If you are internet savvy, one of the best ways of avoiding late payments is setting up automatic payments through your financial institution’s website. Credit unions are perhaps the most amenable to this form of bill payment as some banks may charge for the service.

Closing Accounts

Credit scoring companies put a lot of weight on the length of your credit history. Closing newer credit accounts may well improve your score by reducing the amount of credit you have available and the chance that you may go out on a shopping spree. But closing your oldest accounts reduces your credit report score because it removes you longest history of payments from consideration when your score is compiled.

If you have moved recently, or are planning a relocation, make sure your utility or cell phone provider has a forwarding address. I closed an account in December with my natural gas provider, only to be surprised by a residual bill the following March.

Credit card imbalances

Let’s says you have three credit cards with limits of $10,000, $5,000 and $4,000 each and you are carrying balances on all of them or are about to make a large purchase using one of the cards. You would assume it may be best to use the card with the lowest interest rate and this may be the one with the $4,000 limit. But your credit report score could take a hit while you are trying to minimize interest charges. That’s because your score can be adversely affected by having a high debt to credit ratio on one of your credit cards. If your big purchase cannot be avoid, use the card with the higher available total credit to lower the impact on your credit report score.

Paying down your debt

If you are running on fumes from month to month, as I have done at some point in my life, you know it will take serious discipline to chip away at your debt. One of the most obvious ways to reduce your monthly outlay of cash and thus provide more funds for your debt-reduction plan is to avoid recurring expenses like the plague. And the ugliest of recurring expenses can be that old staple, the car loan. I have avoided paying a car note since 1982 by buying a succession of modest used cars that I have rigorously maintained. You could save yourself one or two hundred dollars each month by switching to a used car and purchasing an extended warranty.

Goosing your credit report score

What if you are fresh out of college or just stepped off a plane and have no credit? If you have made it though college while avoiding the credit card trap to which many college kids succumb, one of the easiest ways to jump start your credit report score is by applying for a secured credit card. You can do this by depositing some cash in a restricted account.

Most banks will issue you a credit card with a limit set by the amount of cash you have deposited. If you use the card regularly and pay on time, they may then lift the restriction on your deposit and change your account to a non-secured designation. After you have developed a feel for paying your credit card on time, it may be a good idea to call your credit card issuer and ask them to raise the limit.

Avoid card collecting sprees

I have seen many instances of consumers carrying credit cards from several well known department stores and electronics and computer manufacturers and retailers. You should avoid a proliferation of credit cards with small limits like the proverbial plague. And be very careful what you sign up for, whether on the internet or at in-store promotion booths.

Paying off old debt

I am reluctant to advise you to avoid paying off old debt as I am a stickler for living up to my personal obligations. This may become a matter of personal choice for you but you should know that paying an old debt that has languished on your credit report for years, revives the account as a current collection activity, a certain means of lowering your credit report score. Better to boost your score, sign your loan, then pay off the old debt.

All this sounds simple enough but can be difficult to put into practice. Remember that there is no quick fix for boosting your credit report score. It will take discipline and patience and will create some annoyances in your life, but in the long run it can save you bucketsful of cash.

For more tips on credit matters visit my website at www.my-credit-report-score.com

For more tips on credit matters visit www.my-credit-report-score.com

Douglas Michaels is an editor, publisher and columnist. He started out publishing a free construction industry magazine geared to introducing builders to new, environmentally-conscious technologies in the 1980s. He works in the financial industry and now dedicates his time to helping others educate themselves on improving their credit scores.

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How To Build Your Credit Score

How to Build Your Credit Score

A solid credit score can lead to lower interest rates, loan approvals, and even job opportunities. If your score is currently less than what you would like it to be, you can take measures to improve it. By understanding the basics of the system, you can start building your credit score today.

What Credit Score Is

The term "credit score" refers to the overall health of your finances. The Fair Isaac Corporation usually calculates this three-digit figure. Fair Isaac takes information from your credit report and punches the numbers through a series of calculations. Your payment history and the amount of outstanding debt you have are taken into consideration. The length of credit, new credit, and type of credit you have are also reviewed.
Before issuing credit, many lenders check your credit score. You may be accepted or denied based on your credit score. For this reason, it is important to maintain a good score. And doing so can be easy. Following are a number of steps you can take to help you build your credit score.

Make Payments on Time

By far the easiest and best way to build your credit score is to avoid late payments. By paying bills on time, you show lenders that you are reliable and consistent. If you have a hard time remembering when payments need to be made, try streamlining the due dates. Call your lenders and ask to have the due date changed to a certain day of the month. Set up all your bills to be due on the same date. You can also line up automatic payments. That way, the money is withdrawn from your checking account at the same time each month. Have reminders sent to your email or mailbox. Find a method that helps you pay on time, every time.

Pay Down your Debt

Paying off debts that you have is another way to build your credit score. Strive to use only 35% or less of your credit limit. So if you have two credit cards that each have a $5,000 limit, you have a total credit limit of $10,000. Aim to keep your total outstanding balances under $3,500. This will lower your credit risk, thereby raising your credit score.

Keep Accounts Open

If you have had a credit card for a long time and rarely use it, think twice before closing the account. If you have a solid history of on-time payments, it may be in your best interest to keep the account open. It will show lenders that you have a longer credit history.

Use your Credit Card Wisely

Building your credit score does not mean getting rid of your credit cards or not using them. But before you make a purchase, consider how you will pay it back. Look into what you can and cannot afford before swiping the plastic.

If you decide to open a new account, keep your shopping time limited to 14 days. Once you have the credit card, pay off your balances on a timely basis. This will improve your credit score over time.

These are just a few ways to build your credit score. Staying on top of your finances and managing them routinely will help your FICO numbers increase. Before you know it, you will have a high credit score.

------------------------

To Apply For A Credit Card Today click the following link: http://www.credit-card-surplus.com . Ed Vegliante runs http://www.credit-card-surplus.com , a directory helping consumers to compare and apply for credit cards.

Debt Consolidation on Student Loans

Essential Information On Student Debt Consolidation
By Mary Wise

Consolidating Federal Student Loans

Federal student debt consolidation is usually done through another federal student loan. This new loan combines the outstanding loans into a single loan and locks the interest rate. The benefits you can obtain by means of this type of consolidation are significant as all these loans are subsidized which implies low rates. If the rate is locked, this implies that you will have the same monthly installments for the rest of the repayment program while your income may improve.

Private Student Debt Consolidation

Private student debt consolidation is also done through a debt consolidation loan. However, this new loan will be a private loan. Though most of these loans are also subsidized, the interest rate charged may be higher than that of federal loans for students.

As to the requirements for approval, provided that you are up to date with the payments there won’t be a problem with approval as you are already showing that you can repay debt with higher monthly payments. However, if you have defaulted on a loan or have late or missed payments, you’ll have more difficulties during the qualification process.

Consolidating PLUS Loans

PLUS loans are awarded to parents and thus, these loans need to be consolidated separately from the loans awarded to students.

However, it is possible to consolidate them jointly if both co-sign the same consolidation loan.

However, this is not a common solution as the nature of the debts is different too and thus it is not always advisable to consolidate both debts simultaneously.
Nevertheless, it can be done and sometimes, either the parents or the graduated student, choose to consolidate through a home equity loan and unify all student debt and consumer debt into a single loan.

Joint Consolidation of Federal Loans And Private Student Loans

This is a particularly complicated issue. Private student loans can not be included in federal consolidation loans due to obvious reasons.

However, federal student loans can be included in private consolidation without difficulties.

However, is it advisable to do so? Generally, No. This is due to the fact that federal loans are subsidized loans and carry low interest rates while only some private student loans are subsidized and even those which are still charge a higher rate than federal loans. Thus, by consolidating, you would be turning an otherwise cheap debt into a more expensive one.

Higher Debt, Lower Payments

Of course, if what you need is to bring some ease to your financial life and would benefit from lower payments, private student debt consolidation offers better chances of getting longer repayment programs and thus, lower installments so your debt becomes more affordable.

Mary Wise, a professional consultant at Badcreditloanservices.com with twenty years in the financial field, prevents consumers from falling into the hands of fraudulent lenders.
In her website you will find more useful tips and interesting financial articles on this and many other related topics.

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http://EzineArticles.com/?Essential-Information-On-Student-Debt-Consolidation&id=633486

Bankruptcy IS NOT The End

Guidelines For Buying Things After Bankruptcy Proceedings
By Wade Robins

There are special guidelines you need to follow when filing for bankruptcy. There are also things to remember about buying things after a bankruptcy. Can you get a loan? Can you Can you get a credit card? The answer is simple, do you want to get back into debt after getting out.

After bankruptcy, you may find it a little harder to obtain a loan or a mortgage, but it can be done. Many bad credit programs pop up everywhere and make it easier for people who had the unfortunate bankruptcy filings on their credit report to obtain financing for a loan or a mortgage, even a credit card.

More companies want to help people with bad credit obtain car or home loans and offer many different types of loans for this specific reason. Many people who want to purchase a car or a mortgage will want to check into the many different options. One reason people become qualified is that people cannot file for bankruptcy again for at least seven years after the first filing. This is all part of the guidelines for bankruptcy that you receive when you file.

Before trying to buy anything after a bankruptcy, you should work on building your credit score and watch any credit card balances to make sure that your total debt is not over fifty percent of your income. By adding positive credit history to your credit report helps to raise your credit score. You can apply for a credit card even if it is small as three hundred dollars for the limit, use it, and pay it off many times. This builds positive credit.

Knowing what creditors look for when giving out credit helps you prepare for obtaining credit. You might need to talk to creditors or a credit repair counselor to see what you might do to help your chances of getting a loan. Every lender has a different standard when it comes to dealing with people with poor credit reports and scores.

Two things you can count on them wanting are a down payment and income verification, but also they want you to wait at least two years after bankruptcy to apply for a loan. Of course, you need to make all payments you have for anything, on time, including your repayment plan.

If you need a down payment, you can borrow from family or friends or try a program for assistance for receiving a down payment. You might obtain a grant from these organizations and use that towards your down payment. Another way to obtain a down payment is by borrowing from your 401K plan as a way to provide you with a down payment.

You can also find more info on Chapter 11 Bankruptcy and Personal Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.

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http://EzineArticles.com/?Guidelines-For-Buying-Things-After-Bankruptcy-Proceedings&id=633151

Fix Your Bad Credit in 8 Simple Steps

How to Repair Bad Credit in 8 Simple Steps

By: Garret Belisle

Here is STEP 1: Read your credit report to discover what things are listed on the report that have led to your bad credit rating in the first place.



STEP 2: If you note inaccuracies on your credit report, you'll need to dispute those with the individual creditors reporting them. You can't dispute accurate information even if it does reflect poorly on your credit report, but you can make repairs and improve your credit.



STEP 3: Contact individual creditors and ask if they're willing to work with you to create a repayment plan you can afford, but also assures the creditor of your intent to repay the debt owed them.



STEP 4: Contact your credit card companies and ask for a reduction in the interest rate applied to your credit cards. Some may not be willing, but many credit card companies are willing to do so for cardholders. Use the reduction of interest applied to a credit card account to pay the debt you have on it down faster.



STEP 5: Gather pay stubs and statements for monthly, quarterly, and annual bills (utilities, phone, mortgage, home insurance, retirement account contributions) and create a budget to keep from spending beyond what you actually bring in. You'll also find ways to spend less and use those savings to pay on the debts causing you bad credit



STEP 6: Maxed-out credit cards? Barely able to make the minimum payments on them? Stop using them! Hide them away in a drawer so they won't tempt you to use them and add even more debts to them.



STEP 7: Contact a credit counseling service if your debts are so large that you cannot make regular payments on all of them. A credit counseling service can help you create a plan of action to take care of the debts that are responsible for your bad credit. They can often times speak to your creditors and get you reduced rates and extended payments plans as well.



STEP 8: Apply for a bank sponsored debit or prepaid credit card. As you use this for purchases and make regular payments, you will slowly rebuild bad credit into good credit.



No matter how bad a credit problem may be, it can either get better or worse. In many cases much, much worse. Almost everyone has had credit issues at one time or another in their lifetime. The fact is that our credit rating has a very large effect on our every day lives. Always remember that the better your credit becomes the more money you can and most certainly will save on a variety of things such as; mortgage rates, credit card interest, car payments to name but a few.



Stick to a budget and both you and your credit will be happier for it. Good luck.

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Author Bio

Garret Belisle authors for www.need-to-get-some.blogspot.com, he is also a business consultant for several companies within his community. This is a fun blog that changes daily, not keeping to any particular topic. Check it out, you never know what you'll read (or possibly learn:-)

Article Source: http://www.articlegeek.com

Buy a Mobile Home with Bad Credit

Bad Credit Mobile Home Loans
By Jacob Smithston

Do you have bad credit? Are you looking to purchase a home but keep being turned down? You may want to consider a bad credit mobile home loan. This type of loan requires just proof that you
are working and that you have a bank account. It can allow you to get a mobile home and have a
home of your own and allow you to help fix your credit.

You can significantly affect your credit. A mobile home loan works the same as any other home
loan, though usually the terms are much shorter since mobile homes tend to have a shorter life
span than regularly constructed homes. However, if you are on a tight budget and have bad credit
a mobile home can be a great way to be able to own your home and they are usually significantly
cheaper some can go for the price of a down payment on a regular house. This means if you are
budget conscience, you can still get your own home for a price you can afford.

There are a couple of things you will need to bring with you when you go to apply for a loan,
first is the past two years worth of taxes, this shows your financial history anyone who is going
to give a loan is going to want to know you’ll be able to pay it back even with bad credit.
You will also want to bring with you recent pay stubs to show that you are currently employed.
This will give the lenders you are looking at a good idea of your financial situation and they
can make sure to give you a loan that is going to fit in your budget. A bad credit mobile home
loan can help you repair your credit.

Written by Jacob Smithston. Find the latest information on mobile home loans as well as bad credit mobile home loans

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http://EzineArticles.com/?Bad-Credit-Mobile-Home-Loans&id=560403

Apply for Credit Cards Online

Benefits Of Applying Online For Credit Cards If You Have Bad Credit
By Duran Mueller

A life without credit cards is unimaginable. But, people with bad credit face a
lot of rejections when the apply for credit cards. This humiliating experience
can be quite taxing. It's not that credit card companies don't issue credit
cards to bad credit people, they do. But, finding the right credit card can be a
daunting task if you have to run from bank to bank and hear a big No from a
majority of them. So, how to reduce this burden and get a credit card for bad
credit easily? Apply online is the answer. The benefits listed below will
reinforce this statement.

1. No personal rejections

While applying online you don't have to face anybody. Just fill in a form and
wait for an email or call. No, humiliating rejections to face personally.
Everything is communicated in a way which is more easy to cope with.

2. Hassle free

You don't have to run to every desk in the bank to find out where are people
with bad credit dealt with. There is a special section on each of the websites,
exclusive for people with bad credit. Just login and go to your section. No
personal interaction needed with any nagging staff. Isn't it cool? there are a lot of conveniences with online applications that can be had. Everything that you will ever need for a bad credit credit card application is available online. Every form and declaration that you need can easily be downloaded and printed out. After filling them out, you can then just have them scanned or scan them yourselves and upload it to your computer and send it back.

3. Very less paper work

The application form for credit cards are entirely online and can be filled
on your computer itself. Moreover, if a credit card company requires something
to be faxed, it will most probably be available as a download. Simply download,
print and fax it. You can do it from the convenience of your home or office. No
time wasted.

4. Quick turnaround times

If you fill in all the details online correctly most banks will give you an
in principle approval instantly. Others who don't do it instantly will also
reply within few days. Some of the banks, if they find that you are not eligible
for a current offer but qualify for some other offer, will promptly send you the
details.

5. More information on fingertips

Need more help regarding credit cards for bad credit people. There are tons
of resources online. Just google your problem and you are sure to find a
satisfying solution. Want to compare two or more credit cards? It can be done in a jiffy.

In short the benefits of applying online for credit card with bad credit are
enormous. You can find quotes from different credit card companies without
facing the harassment, humiliation and paperwork of offline processes.

Duran Mueller an expert author and credit card consultant, provides great American express credit card tips. Read more credit card articles at his credit card website.

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http://EzineArticles.com/?Benefits-Of-Applying-Online-For-Credit-Cards-If-You-Have-Bad-Credit&id=548867

Home Equity Loans

Home Equity Loans Make Financial Sense

By: Mike Hamel

The optimum word in "home equity loan" is equity. Start with the fair market value of a home, subtract the mortgages (first and second) and any liens against the property, and what you have left is the equity. This equity can be used as collateral to secure cash in the form of a loan or mortgage.



The amount borrowed is based on a percentage of the appraised value of the home. The percentage rate can vary from 75% to 125%. The length of the financing will also vary. The two main types of home equity loans are fixed rate loans and adjustable rate loans.



Fixed rate loan - provides a fixed amount of money at a fixed rate of interest, repayable in equal payments over the life of the loan. Fixed rate financing costs more in set-up fees and comes at higher interest than adjustable rate loans. But if homeowners stay put and interest rates go up, they will save money over a comparable adjustable rate loan.



Adjustable rate loan - the interest rate goes up or down according to the index upon which it is based. Adjustable rate loans will have a cap on how high the interest rate can go. Usually called ARMs (Adjustable Rate Mortgages), this type of loan has lower up-front costs and starts at a lower interest rate than fixed rate financing. This means lower initial monthly payments.



Putting home equity to good use

According to the Consumer Banker Association, the top ten reasons for getting a home equity loan are:

10. Vacation

9. Medical expenses

8. Business expenses

7. Household expenditures

6. Investment

5. Major purchase

4. Education expenses

3. Automobile purchase

2. Home improvement

1. Debt consolidation

Debt consolidation, the most popular reason people cash out their home equity, is a smart form of financing because of the money it can save. For example, say you owe $15,000 on a credit card that charges 17% interest. If you get a debt consolidation loan at 9% interest and pay it off in five years, you'll save you over $30,000!



If you're paying more than 15% interest on anything, you should seriously consider a debt consolidation loan. The right terms could drop your monthly payments by 35% - 50%, depending on interest rates, origination costs and tax consequences.



Even for people who have bad credit or who have filed for bankruptcy, a home equity loan is not out of reach. It can be a good way to make a fresh start. Websites like www.easyhomeequitymortgages.com help borrowers with bad credit get the home equity loan that best fits their unique situation.

Author Bio

Mike Hamel is the author of several books and the Senior Writer for AIM Techs (www.salesandmarketingllc.com), an Internet marketing company that specializes in improving visitor-to-sale conversions using proprietary software and advanced SEM techniques.

Article Source: http://www.articlegeek.com