RSS FeedGetting the Best from Timeshares
Timeshares is a plan that popped up many years ago to enable people to vacation for more affordable rates, as well as a variety of other reasons. When the idea was first put into practice, it was quite popular. The premise of a timeshare is that several individuals or families make a monthly payment that grants them the use of the condo, home, or apartment for at least one week during the year. The weeks had to be coordinated so that each co-owner had a fair amount of time to spend at the timeshare. Most people used this as a way to plan a vacation each year.
As people gradually began to discover how limiting these timeshares could be for all the money they were paying during the year, they became a bit less popular. However, many of the co-owners found a way to make it worth the money. By putting some plans into motion, they found that timeshares were actually a good thing for them.
If you take part in a timeshare, the first thing you will have done is book the week that you want to use it. This has good points and bad points. While you have the advantage of knowing when your vacation is each year, there is no room for changing the dates. You are pretty much locked into that week. However, you also know that you will not be spending extra money to stay there for the week. You are already used to making the monthly payment, so this doesn’t dent your budget.
Plan your food shopping ahead of time right down to making daily menus. In this way, you will not be wasting any food, or put in the position of either leaving it for the next family or taking it home with you. While you will probably want to dine out a few times, it isn’t something that has to be done every day. Take along a good supply of bottled water, soda, tea and coffee. These items tend to cost more in tourist areas.
One way you can make extra money from your timeshare is by renting it out for your week. Many people co –own more than one timeshare for just that purpose. While they are vacationing in one of their timeshares, they can be renting out the other ones. This pays for their vacation, and allows them extra money to spend or save for other things. Some timeshares don’t allow this, though, so you should check ahead of time to see what the policy on this is.
Timeshares may not be as popular as they used to be, but many people still find them to be money saving investments. This is because they have learned how to make the most of them. There is no reason that you can’t do this as well.
Holidays on a Shoestring Budget
It’s only a few more weeks before the commercials and advertisements about holiday gifts will begin. Many of you dread this time of year for the simple reason that there is never enough money to get loved ones “nice” things. The thing you have to remember is that just because the television and newspapers say there are only certain things that are “nice enough,” that is not necessarily true.
First of all, the world is so inundated with all the newest in electronic toys and gizmos, that it has forgotten just what the true spirit of the holiday season is all about. People have not always had lots of money to spend on gifts, just as the world has not always had the shiny new things it has today. It IS possible to have a perfectly wonderful holiday by going back to basics.
Of course, if you have children, they may expect the newest in video or computer games. This is possible if you begin planning many months ahead of time for the gift you will buy for them. Putting back a small amount of money each week or month may just provide enough money to buy that one special present by the end of the year. It takes some strict budgeting and discipline, but it CAN be done.
Use any talents or abilities to create gifts that come from the heart. Everyone seems to have become so competitive about who can spend the most money on the coolest presents. Don’t let yourself get caught up in that. Instead, break out the crochet hook, or sewing machine. Some of the most beautiful gifts cost only the money for supplies, and your time. If you happen to excel in baking, keep in mind that this is the time of year that people love baked goodies.
You can also give the gift of your time. Create some appropriate “coupons” to provide anything from baby sitting services, to house cleaning, to cooking some meals. These are especially appreciated by older people who may not be able to get around as much as they need to. You can offer chauffer services, or shopping for them. These mean so much when presented to the right people, and they don’t cost you anything but some of your time, and possibly some gas in your car.
Decorating can also be done from home made items. This is something the entire family can become a part of. Things such as popcorn strings for the tree, and hand made ornaments will not only save money, but provide for family togetherness, which is after all, the true spirit of the holidays.
Funding your Own Small Business Without a Loan
You may be one of the many people who choose to start a small business each year. You might just want to be able to work from home, be more available to your family, or just be able to get away from a boss peering over your shoulder everyday. Whatever your reason is, you most likely need some money to get you started.
If your business idea is small enough, it is possible to get it off the ground without having to get a loan. This is a much better, and easier, route to go in the long run. Funding your own business without a loan rids you of the need to pay this money back when your business gets off the ground. You will most likely agree that it’s much nicer when you get to actually KEEP your profit.
A lot of small businesses can be started by simply saving the money you need for supplies. For example, if you are interested in beginning a gift basket business, the first thing you are going to need is baskets, and lots of them. You can find these in many places, but if you happen to live near a basket factory, you can buy a lot of them for a bulk price. As these will be an ongoing need for your business, it is impossible to buy too many of them. Decide what sort of baskets you will specialize in, and buy enough supplies to make a reasonable number of those baskets. Use your printer to make flyers for advertising in shops and anywhere else that allows flyers to be posted. At first, you can simply use your existing telephone for business calls, so you don’t have to pay for a second line. Take the money you start receiving for the baskets you sell and reinvest into the business. Branch out and start making custom baskets.
While that is only one example of how this can be done, there are many other small businesses that do not require a loan to start. If you are more eager to get your business up and running, it is possible to take on a partner, or an investor. Either of these options should be entered into only with people who share your dream or vision, or it will simply not work because your business will never be truly yours.
Think seriously about what you want to accomplish with your business and go from there. Plan for your venture and make a list of everything you need in order to begin it. It might just be easier than you think to keep banks out of the picture.
The Foreclosure Process
If you are faced with the dismal prospect of losing your home, you will want to take any action necessary to keep yourself from becoming homeless. To fight a foreclosure, it is vital to understand how the process works. As the process of foreclosure varies from state to state, homeowners need to be aware of not only how the process works, but also the timeline involved. When you are more familiar with the process, you can make a better decision on how to stop your foreclosure.
The first time you miss a mortgage payment by just a day, the foreclosure timeline begins, although no penalties are incurred. You will be given 16 – 30 days to make your payment. A late charge is added at this time, and you will most likely receive a phone call from the lender inquiring as to why the payment is late.
After 16 days, you will have a late fee added to your payment. If you have still not made the payment after 30 days, you will be considered in default. This means that you are really late on this payment now, and if you don’t pay it soon, the lender is going to take your home away from you. Depending on your lender, you will either be allowed to make the late payment in installments or you will be ordered to make the payment in full immediately. In certain states, once you are 60 days late, a filing of Notice of Default will be made. However, between 45 to 60 days, you will receive a “breach” letter which explains the terms of the mortgage in writing. This also gives you 30 days to resolve it. You can expect to hear from your lender daily during this time. You may be offered some payment options. If you are, you should take them.
Days 60 to 90 will bring you a notice of default. There will also be collection fees added to the already existing late fees. The loan will be handed over to the lender’s legal department, where documents will be sent to a local attorney to begin foreclosure. If things are still not resolved by 150 to 415 days, there will be a Notice of Trustee Sale filed. This means your home will be scheduled to be sold.
A foreclosure is a legal process and guidelines are set that must be met. After the case is turned over to the local attorney, there must be a public notice of the foreclosure placed in the local papers. As the homeowner, you have every right to try to stop this process. If you haven’t done so prior to this, now is definitely the time to seek the advice of your own attorney.
In the last part of the process, some states have laws that allow you the chance to buy your property if you can. By this time, though, you will most likely have been made to vacate your home by the local sheriff’s department, if you have not been able to make up the payments.
Rent-to-Own: Blessing or Trap?
Most people hit a point in time where they truly need something such as new furniture or appliances, yet just don’t have the money to pay for them. Their credit may also not be the best it could be either. This is usually when they flock to the nearest rent-to-own store. They know that, here, they can get whatever they need by making that first weekly or monthly payment, and signing a contract in which they agree to pay this same amount weekly or monthly for a certain length of time. They can also leave the store with the items they need that very day, or have it delivered within 24 hours.
It all sounds so very simple, doesn’t it? In many ways it IS very simple. However, in other ways, it can be a huge trap. When you enter the rent-to-own store you may be in such a desperate situation that you don’t even bother to read the fine print on your contract. You are probably also not looking at the highly inflated interest rate you are paying to “rent” your new refrigerator or living room suite. All you see is that you can pay an affordable amount of money and walk out the door with what you need. This interest rate DOES add up, too. You usually end up paying 2 – 3 times higher the amount than you would have if you had purchased it elsewhere outright.
The good thing about these programs, though, is that people CAN get what they need immediately, even with bad credit. This is a life saver to many who simply cannot have the things they need in the time frame they need it. In addition, you will have monthly or weekly payments that you can budget for. So there are no unpleasant surprises. However, if you miss a payment with these stores, you can expect a phone call the day it becomes past due. You will also have late fees added to the past due payment. If you default on your payment too many times in a row, the account manager will show up at your door with the store truck to take back the merchandise. This means you will lose all the money you have paid into it.
The rent-to-own stores have both good points and bad points. But if you are truly in a situation where this is your only answer, you can make it work for you. You can budget your payment, and even double up on them when possible. Once you have completed the contract, your item will become yours. You may have paid more money than you should have, but at least you were able to get what you needed when you needed it.
Refinancing a Mortgage
When you think about refinancing a mortgage, you probably want to do this to lower your interest rates, which should reduce your monthly mortgage payments. As with anything, there are good points and bad points to refinancing your mortgage. Essentially, when you refinance your mortgage, you are paying off your current mortgage by taking out a new home loan. The difficulty comes in because it’s not always to your benefit to refinance your current mortgage.
There are some things you should consider before making the decision to refinance. You should closely examine the rate of interest you have been paying and compare it to the current mortgage interest rates. When the current interest rates are least 3 or more percentage points lower than what you pay now, this is a good time to consider refinancing. The reason for this is that with a lower interest rate, you pay less interest annually. This means less interest that you will need to deduct from your income tax. There are even some refinancing costs that might be eligible for tax deduction during the year of your refinancing.
When preparing for refinancing a mortgage, you will also want to consider discount points and how they might impact the cost of the mortgage. Also, keep in mind that you could be facing additional closing costs. So, you will want to plan for that, as well.
Another thing that you will need to think about is whether or not you want to remain with your same lender. If you have had a good relationship with your lender, it might be possible to just renegotiate your mortgage at lower interest rate. This is usually done for a set fee. Renegotiating is not actually refinancing as much as it is an amendment to your current mortgage. Doing things this way does not require any closing costs.
If you and your present lender cannot come to an agreement, it is advisable to look around. Inquire about any charges you will need to pay, and compare interest rates along with closing costs. You will find that closing costs vary. These are dependent on things like the age of your current loan, the present mortgage market, any promotions a lender may have, and lender policies. Keep in mind that the final charges of refinancing will usually run between 3 percent and 7 percent of the full amount of the mortgage. This will help you decide which way you should go.
Teaching Children Money Management Skills
One of the most important things that everyone needs to know is how to manage money. It’s the one thing that can either make or break you in life. If you are not great at managing your money, you will most likely find yourself in debt all of your life, along with the bad credit ratings this can bring you. As this is such an important skill to master, it is never too soon to start teaching your children the value of money managing skills.
This actually sounds a lot harder than it is. Most of the lessons work in naturally with other day to day things. However, there are a few special things that can be taught outside of these daily activities. Start out with a piggy bank for younger children. When Grandma and Grandpa give them money for their birthdays, have your children put some of this in their banks to save. They can be given a small amount of money to spend when you take them shopping. This is a lesson in saving money for them.
Older children, such as 12 – 15 year olds, can be shown how to do grocery shopping. Give them a part of your shopping list, or let them help make the list. When you go shopping, tell them the amount of money they have to spend on the items contained on their lists. Then go your separate ways in the store. Set a meeting point in the store to check the items before going to the cashier. You might just be surprised at how well your child will do with this project. It might not be perfect the first time or even the first 5 times. But you will see that, eventually, your child will become more adept at matching the items on the list to the allotted amount of money to spend.
Paying monthly bills is something that you can start teaching your older children about from 15 – 18 years old. Let them sit down with you when you are paying them. For example, show them the value of cutting off lights that aren’t needed by letting them see the electricity bill. They are going to be amazed at how much it can cost to keep a household going. This may also be a great time to go over some ways that the costs can be kept to a minimum.
Another thing you can teach is how to do important tasks such as balancing a checkbook. Most banks will offer savings accounts and special checking accounts for 16 year olds. This is a great way to teach children how to keep track of what they are spending, and will come in quite handy for years to come.
How to Improve Your Credit Rating Fast
All potential lenders, landlords and employers seem to require a credit report before going any further with your loan, apartment application, or job interview. This report shows them exactly what your credit score is, and will alert them to how good or bad your money managing skills are. It also tells these people you really want to impress if you are reliable or not with repaying any debts.
For better or worse, your credit score is the one thing that will follow you all of your adult life. It will make a difference as to whether or not you get the car loan you really want. It will be the thing that makes it possible to be living in a cool apartment, or sends you back to your parents’ basement. A high credit score will put you in that sporty car you crave, or in that apartment where you can invite your friends with pride. Banks will be beating down your door to loan you money.
There is, however, the other side of the story. If you have a below average or poor credit rating, you will be counting change and hitting up your friends or relatives for money to pay large deposits and down payments. Otherwise, you will have no place to live, and no car to drive. However, it’s not all hopeless. There are several ways to pull your credit rating up to an acceptable rating.
All of your financial information will affect your credit score, be it positive or negative. Some of the information will have more an affect than others. When you are trying to make your credit score better, remember to start with the negative factors.
The first thing you need to do is start making any payments you owe on time. All payments are reported to the credit agencies regularly. Your credit score can improve within as little as 3 months just bypaying your bills on time.
Getting a copy of your credit report and reviewing it carefully for accuracy is also very important. Sometimes you will find that a creditor has reported you for late payments when you have been making your payments on time. This means you will need to take the time to write a letter to the credit agency to dispute this report, requesting that a correction is made on your credit. Having proof of this will help make this correction take place quickly. If you only have your word for this, it will take much longer.
Open a savings account and keep at least $500 in it. This will help to improve your credit rating. That balance will give you collateral for a personal loan. A bank loan can raise your credit rating faster than anything else.
If your credit rating is particularly dismal, you need to understand that there is not a quick fix. It took you years to reach this point, and it won’t be repaired overnight. But don’t let this discourage you. Instead, look for the light at the end of the tunnel, which should start appearing within 3 months of your improvement actions.
What is the FDIC for?
It would likely be safe to assume that almost everyone in the United States has seen the “Member FDIC” signs that are displayed at banking institutions. Even if you don’t have a bank account yourself, you have still probably seen one at least once in your lifetime thus far. The signs are as common in America as hot dogs and apple pie. However, something being extremely common does not mean it is also understood by everyone. If you’re one of those people unsure of what exactly the FDIC is or what it does, read on to find out.
The FDIC stands for “The Federal Deposit Insurance Corporation.” It exists to provide insurance for nearly every banking institution, as well as savings and loan institution. It automatically protects individuals and businesses alike, for up to $100,000, in the event of bank failure. In the case of retirement funds, the FDIC insures up to $250,000. This basically means that if your bank goes the way of the dinosaurs, your money is guaranteed to be safe up to those listed limits. By your bank displaying those “Member FDIC” signs, they are letting you know that they are compliant with the FDIC, so you can feel more confident about letting them handle your money.
As with anything, there are some restrictions, of course. The FDIC does not cover absolutely everything, so certain situations will render the insurance coverage null. The coverage extends to more standard banking procedures, such as checking accounts and savings accounts. It will also cover Money Market Deposit Accounts if yours is one that you can write a small number of checks on a month and Certificates of Deposit that take time to reach maturity.
On the flip side, the FDIC will not cover Treasury bills or other investments backed by the United States government, stocks, bonds or mutual funds. It will not protect your annuity or insurance items, like those for your home or vehicle. Any mistakes made by your bank itself are instead usually covered by their own insurance policies, which is handy because the FDIC doesn’t have those under its protective umbrella. Likewise for any fraud committed by bank personnel.
So, to sum it up: the Federal Deposit Insurance Corporation is an organization that provides you with a means of protecting and recovering losses you may accrue in the event of bank failure, and next time you see one of those “Member FDIC” signs, you’ll know exactly what it means.
Subprime Mortgage Crisis: The Short Explanation
Unless you live under a rock (in which case you are likely not affected anyway, so go back under there and be safe), you have heard of the economic crisis the United States is currently experiencing. This crisis is shaping up to be the worst thing we have seen since the market crash in the 1930s, and it is having a profound adverse effect on the economy of the rest of the world, as well.
When the US housing bubble burst, the crisis began, and it began reaching critical mass in 2007, with 2008 seeing the collapse of large firms like Bear Stearns and the federal takeover of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, known as Fannie Mae and Freddie Mac, respectively, among other major events like The Fed’s emergency bailout loan to AIG and Merrill Lynch agreeing to sell itself to Bank of America.
There are many different aspects to this economic crisis, and for each of those aspects, there are multiple adverse effects and reactions that are rippling out across the planet, but the very base cause is the subprime mortgage issue. Increases in loan incentives like easy initial terms and the trend of rising housing prices in previous years led borrowers to take on high or difficult mortgage payments under the impression they would be able to refinance into a mortgage with more favorable terms rather quickly. This coupled with the risky lending practices of the mortgage originators like giving loans to people that would otherwise be considered unworthy of credit, resulted in high default rates when housing prices started to drop and refinancing became more difficult.
Basically, people that could not actually afford it were encouraged to take on high mortgages, being led to believe they would be able to quickly refinance and get the payments down to a more manageable level while still acquiring a nice home. Once housing prices began to fall and refinancing therefore became more difficult, people were unable to keep up those high mortgage payments and began defaulting on payments. The foreclosure rate skyrocketed with over 1 million properties in the US being subject to foreclosure activity in 2007. It is not yet clear where this will end and if the actions the federal government is taking to try to salvage things will work, but there are small signs that the stock market may be recovering, albeit in small increments.