Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

Top 5 Reasons People Get Reverse Mortgages

Written by Dian Herdiana on 6:02 AM

Once you’ve done your research on reverse mortgages and gained a more complete understanding of the product, the next step is to decide if a reverse mortgage is right for your situation. If you’re eligible (a homeowner 62 years of age or older with equity in your principal residence), this may be a quick decision or one that requires a bit more consideration. As with any decision, it’s always helpful to get the perspectives and experiences of others who have faced similar situations and asked themselves the same questions. So for those other folks who have decided to get a reverse mortgage, what were their reasons? We’ve asked some of our readers and site visitors and below are the top 5 reasons people get reverse mortgages:

1.Retire in style! – Most homeowners getting close to retirement age have spent that last thirty years or more making mortgage payments; depending on where you live, this monthly obligation could be anywhere from a few hundred dollars a month to a few thousand dollars a month and beyond – phew! Every month that one big check goes out the door to the bank and leaves you with that much less cash to save, invest or spend on the items you need and want. How great is it to finally turn the tables on Main Street Bank, where they now send you a check each month? Most retirees have steady monthly costs, such as housing, medical, insurance and other necessary expenses. For non-working retirees, those expenses are managed with a fixed income from retirement accounts, pension plans, social security or other plan. The reverse mortgage allows a retiree to increase their fixed income and provide cash to do some things that they might otherwise not be able to afford to do. Typically, the personal quality of life is the number one reason people get reverse mortgages.

2.Pay hospital or medical bills – For many older Americans and retiree’s medical issues are an increasing reality in their daily lives. With the ever rising cost of healthcare, this can put tremendous demands on a fixed income. Ongoing medical treatments, prescription drug regimens, or a large one-time (possibly unforeseen) medical bill are all top reasons that people get reverse mortgages.

3.Improve or modify a home – While this may not be an expansion of the home, the early part of retirement is a great time to re-purpose your house to accommodate the way you will be living for the next ten, twenty, thirty years and on. Maybe it’s time to expand the kitchen, widen the hallways or remove some steps, or exchange the old pool in the backyard for a beautifully landscaped garden. As we get older, a top reason people get reverse mortgages is to outfit their house for their new lifestyle.

4.Dream vacation anyone? – What better time to just get away than when your working days are behind you and the weather turns a bit gloomy? Proceeds from a reverse mortgage have allowed many homeowners to take that vacation they’ve always dreamed about, but never had the time or resources to take. Bon voyage!

5.Pay off high interest rate or problematic debts – With the large amount of debt that the American consumer accumulates over a lifetime, it should be no surprise that this is a top reason people get reverse mortgages. Whether its high interest rate credit cards, a relative’s student loan debt, or even a potential foreclosure that must be dealt with, reverse mortgages can be a very effective way to get a large sum of cash to manage other debts.

These are the top 5 reasons people get reverse mortgages – once you’ve made a decision to move forward with a reverse mortgage, send us your top reasons and we’ll add them to the list!

Author Info:

Ethan Ewing: Ethan Ewing is currently President of Freedom Financial Network and If you would like more of Ethan’s, please visit the information on

7 Great Money Tips To Lead You To Financial Freedom

Written by Dian Herdiana on 6:14 AM

Regardless of where we are in life we can all learn something about money and how to better prepare for our future. Especially when we see that the national average is $10,000 in credit card debt and that savings and preparedness is dropping. This article can put you back on track to a more fulfilling and financially free life.

1) Automate your investing. Experience has proven that if we have to make a conscious effort every time we need to invest we will start with good intentions and then miserably fail a few months later. If you can automate your savings, whether by using your employers 401k, a sep (self employment plan), or direct deductions from your account you will finish ahead. The rule here is if you don't see it, you won't realize it and you won't miss it. Some of these deductions will reduce your taxable income and save you further on taxes (see your CPA and tax advisor for more info on this). A good rule of thumb is to set aside 10% of your income.

2) Real estate. If you haven't already, buy a house. Renting will only make your landlord (hint - house owner) rich. Regardless of what the immediate market does real estate is one of the best long term investments you can make. It also has many advantages including deductions for mortgage interest. Real estate will always go up. People will always need a roof over their head. Just watch HGTV, real estate has made many millionaires and is a key factor in almost every tape and book series on gaining wealth. Stick with the standard 30 year fixed mortgage.

3) Medical and life insurance. You need to have them, if you think you don't just ask anyone that didn't have it when something unexpected happened. If you love your family, they are a must. But, on that note, don't get taken. Buy term life. 20 years will give good term coverage and if you follow all of these tips you won't need anything beyond that. Whole life only makes your agent rich and really never builds any value for the huge costs involved. Term life can be purchased cheap over the internet at great savings. For medical insurance, in most states Blue Cross and Blue Shield offer great plans that are a fraction of Cobra or employer plans. If you have an adequate employer plan, by all means use it. Stick with big names like Blue Cross as they will be around for years.

4) Don't ever buy new cars. It is a fact that new cars lose 25-30% of their value the moment you drive it off the lot. Let someone else pay for that depreciation and get a two or three year old car or truck. With the latest technological advances cars can easily go 150,000 miles and above. A two or three year old vehicle with 30,000 miles on it will save you not only in initial cost, but also on your insurance, and taxes. Also do your homework before buying your car. Get your credit score and see what loans you qualify for. This can easily be done right off the internet and will save you big at your local dealer (never take a dealers word for your credit and rate - they will hold 1-3 points on rate and that can mean thousands in extra interest over the term of the loan).

5) Get out of debt. I put the investment tips above this as you need to pay yourself first. If you are overwhelmed with debt, their are numerous non-for-profit agencies that will renegotiate your debt and terms on your behalf. Work out a plan to get the high interest debt paid off. Be wiser with your purchases - do you really need that 60 inch flat screen tv? a BMW you cannot afford? etc... Cut up all cards but 1 (for emergencies you should have 1 credit card) and no store cards. The whole purpose behiind store cards is to entice you to buy more and pay more. My grandfather said it best - "if you can't afford it, don't buy it." The only good loan to have is a mortgage.

6) Never burn bridges. If you happen to leave your current employ, leave on good terms. Find a replacement if time permits. This will put you in a good light with your former management and can result in a good reference, another job, a callback for more money, etc... Never leave on bad terms. Its just not good Kharma. Also, it won't hurt to take former business associates and customers to lunch regularly. This will keep you in tune to the industry, give you many additional contacts afford you future favors - just think of the lobbyists on Capital Hill, you don't think they spend all that money on their politicians for nothing do you? Don't be afraid to ask for a favor every once in a while. Kharma is the big rule here -when you help others you will inadvertently help yourself.

7) Give back. Once you've made it it is only fair that you help others less fortunate than yourself. Regardless of your beliefs when you donate time and money to help others you will inadvertently help yourself. You will feel great. Also, the cardinal rule of kharma is that when you give you will get many more times what you give back. Take the time to help by volunteering your time. Even if it is 1 hour a week, you will help improve someone else's life. Volunteer, it will make you a better person.

Home Based Business Ideas- Fools Gold Or Financial Freedom?

Written by Dian Herdiana on 6:10 AM

Despite the hype, statistics show that the overwhelming majority of home based businesses fail, so the familiar phrase, “If I can do it, anyone can do it”, can’t be very accurate. Why the high failure rates? The single most important factor seems to be that people don’t fully understand what it takes to be successful: effective sales and marketing skills.

Before I started my home based business opportunity review site, I was an Inside Sales Executive for Carleton Sheets Real Estate. I made a nice living selling people real estate coaching packages over the phone. But in order to be successful, I literally had to pound the phone for 8 hours a day, face almost constant rejection, all in an effort to find that one guy out of a hundred that would become a sale. I don’t believe this a skill set many people have (perseverance, determination, and sales skills), and I believe similar skills are necessary to being your own boss. If you accept this theory, than the picture starts to come into focus on the high failure rates.

Another problem is that we live in an era of instant gratification. If people don't make $10,000 in their first month with a work at home business, many quit and go on to the next big thing. Of course, it's not entirely their fault, as they probably responded to a headline that read: "I Made $50,000 in 5 weeks- click here to do the same". With so much fools gold out there, it's difficult for even the savvy consumer to spot the fake from the real thing. So what’s the solution? Well there is no "magic bullet", but there are legitimate home based businesses out there that come close.

Having reviewed countless home based business ideas over that last few years, I've developed a pretty good eye for what's hype and what are truly legitimate home based businesses. I discovered one home based internet business that claims to have eliminated the high failure rates. It’s called the Prosperity Automated System (PAS). They claim that with their turn-key business system, you do no selling, no advertising, and no speaking with prospects; as the company does it all for you.

The Prosperity Automated System, was just selected to be featured on the Discovery Channel in a segment on “Innovative Home-Based Business Solutions” as part of the Models of Excellence series (this news event confirms my initial review on its legitimacy). This segment will air nationally on the Discovery Channel and regionally in conjunction with CNN Headline News.

The company provides free access to their private website, a video, and a free report simply by signing up for their FREE Info Package.

Commercial Equity Line Of Credit

Written by Dian Herdiana on 7:38 AM

Commercial Equity Line of Credit, abbreviated as CELOC, is best suited to meet the industry's changing financial needs. It is mainly used by small businesses, especially start-ups. A Commercial Equity Line of Credit requires a zero balance for a specific time annually. CELOC provides easy access to money when the borrower needs it. Using checks provided, the money can be easily accessed.

A Commercial Equity Line of Credit allows the mortgager to borrow money on a regular basis to finance transactions and for business purposes. The amount borrowed depends on the company’s collateral and cash flow needs. In this method of borrowing, the borrower mortgages company assets, rather than personal assets, as collateral. Even though it is harder to obtain, it provides greater borrowing power.

With the help of a Commercial Equity Line of Credit, the borrower can regulate cash flow by borrowing only what is needed. It reduces interest expenses often incurred by over borrowing. The interest rate equals or exceeds the prime rate.

A Commercial Equity Line of Credit provides almost all the benefits that are available with a Home Equity Line of Credit. The line of credit can be used to improve cash flow or expanding business. Also, it is used for other expenses such as purchasing equipment and increasing inventory. A major advantage of CELOC is that the borrower has to pay the interest only on the amount accessed.

Also known as Operating loans, a Commercial Equity Line of Credit plays a vital role in the business field. By providing quick access to cash with the option to pay overtime, CELOC ensures flexibility to the borrower.

Author Info:

Equity Line Of Credit provides detailed information on Equity Line Of Credit, Home Equity Line Of Credit, Commercial Equity Line Of Credit, Best Home Equity Line Of Credit and more. Equity Line Of Credit is affliated with Financial Freedom Resources.

Personal loan, the most preferred solution for financial freedom!

Written by Dian Herdiana on 7:35 AM

Personal loan’s wide array of options supports a borrower financially to fulfill all his personal desires without any limitations. It is due to this reason that personal loans are widely used in the UK market and is the most preferred solution to combat all financial constraints.

Personal loan serves as a boon to many, when they are without a collateral and need to raise funds to meet their immediate financial concerns. No equity status, or poor credit rating will deter a borrower from guaranteed approval of personal loans. There’s no need to thwart one’s desire to buy a car, purchase a home or ferry to a dream land.
The most common usage of personal loans are car purchase, revamp home, cover wedding expenses, pay off earlier high debts, business ventures, holidaying and fund educational fees.

Recent research on the loan market has also revealed that personal loan uk is the most cost-effective loan prevalent in the market. It is more so with secured personal loan.

No matter in which way a borrower borrows money he his bound to pay interest for it. But the interest rate charged for a personal loan is much lower than the other means of borrowing.

When debts soar and payments become high, it makes one incapable of making the repayments. This gives rise to troubles in the form of bad or poor credits. Recovering from such bad credit becomes a daunting task. What comes to one’s rescue is the debt consolidation loan. A borrower can consolidate all his debts together as against his security; it works well with unsecured debts.

Personal loan centre is committed to sourcing and matching personal loans to borrowers based on their personal needs and constraints. With the number of options available to the borrower, one can afford to be choosy while opting for personal loan services online. And also secure a best personal loan quote with very little research online. A borrower can also avail a Payment Protection cover, with some Payment protection insurance to meet any catastrophe.

To explore a volley of personal loans online visit

Author Info:

content developer for finance sites

Financial Freedom: In Rough Economic Waters

Written by Dian Herdiana on 9:15 AM

Many businesses, and families, are struggling within the framework of the present economy however, some people are still finding new ways to “think outside the box.” The economy is like the speed limit on the highway some people stay the course, while others pull into the high-speed lane and give it all they’ve got.

Now - I am not encouraging you to break the speed limit, but I am letting you know that you can surpass perceived economic barriers, even in a tough economy. How is this possible? It takes innovators to get out of an economic downturn. Whether you are thinking of a recession or depression, it requires creative thinking on all of our parts to get out of one.

Apparently, the thinking is up to the private sector, for the moment, so what do we do? First of all, research your goal, find like-minded people, write your goals down, and go for it. This will require dedication and it won’t happen in a day. If you have assembled a team, let everyone work with their strong points.

Assess the strengths of an innovator in comparison to “the numbers person.” We all have strengths and weaknesses, but we have to utilize the strong points for success. Even an independent thinker can fit into a collective group, if he or she agrees to be constructive. This is why a collective group is so strong in comparison to a “solo act.”

Together, you can research opportunities and put doubts aside. Right now, there are opportunities in servicing, consultation, and Internet commerce. There are also more possibilities, but they require initial research on your part.

I recently talked with a gentleman who made an impulsive investment. He has spent nearly $10,000 on his web site. He offers a variety of products that have nothing in common. He gets no traffic, no sales, and wonders why.

Firstly, he did have good intentions, but he did not do any research. He went into this venture on impulse and did not “weigh up” any advice. Not all of the advice you get will be useful, but it will help you make an educated decision. Most everyone, who is successful on the Internet, has done their research and then found a particular niche. You can’t open a general store on the Internet without competing against WalMart. Who wants to do that?

When considering any business endeavors, listen to the advice for your own good. Get advice from positive thinkers and from “doom and gloom” thinkers. This will give you the full picture, and you can make an informed decision.

Most of all, never give up. Developing an additional revenue stream, that will help you pay down debts, is the goal. If we can all do that, the global economic climate will improve for the best.

Paul Jerard, is a co-owner/director of Yoga teacher training at Aura Wellness Center. He has been a certified Master Yoga teacher since 1995. He is a master instructor of martial arts. He teaches Yoga, martial arts, and fitness to children, adults, and seniors. Recently he wrote: Is Running a Yoga Business Right for You? For Yoga students, who may be considering a new career as a Yoga teacher.

Article Source:

Article Source:

Paul M. Jerard Jr.

Financial Conditioning for Financial Freedom

Written by Dian Herdiana on 9:13 AM

You have achieved financial freedom when you have sufficient passive income to support your lifestyle and you work because you choose to, not because you have to.

There are many "ordinary" people who enjoy financial freedom, and you can be among them. But it might not be a comfortable process getting there. A lot depends on your financial conditioning.

You might have to change some beliefs and actions that are familiar to you now and feel like they are based in an objective reality, when in fact, there is no such thing. A belief is just a thought you keep thinking. Beliefs can change, and so can your opinion about what is real and what is possible.

The financial conditioning for the majority of people goes something like this:
* Go to work for a stable company and you will have job security.
* Work hard and you will earn a fair income.
* Avoid debt because all debt is bad.
* Minimize spending and put your money into savings.
* Focus on funding your retirement. Retirement planning should pay a fraction of what you made during your working years.

If these money statements sound familiar - even if they don't ring true, or make sense - then your financial conditioning needs revision in order for you to achieve financial freedom. For starters, rather than planning for retirement, how about planning for wealth?

First step: know exactly where you are right now- your net worth as of today. List all your assets, from cash on hand to retirement to home equity. List all your liabilities, from mortgage to credit card to student loans.

When you find the difference between your assets and liabilities, you know your net worth.

Next step: know your cash flow. Itemize your income and expenses. (By the way, the mortgage on your house is a liability; a monthly mortgage payment is an expense).

When you find the difference between income and expenses, you know your cash flow.

Once you know your net worth and your cash flow, you have a financial baseline from which to launch your financial freedom plan.

[A little incentive for you to do your financial baseline: most people tell me that when they do this inventory, they find money they didn't realize they had. Years ago, when I first did my financial baseline, I found papers for a fund worth about $7000 that I had from an early employer. I had forgotten about it when I left the company and moved to another city.]

The plan for financial freedom that you design involves sequencing, or doing the right thing at the right time, and there is no formula for that. It depends on your particular situation. But in general, you want to start with a focus on creating cash - not on paying down debt.

Let me emphasize this because it is the opposite of the way most people think. Most people think they have to get debt-free first. And yes, eventually, you want to be consumer debt-free, but that might not be your best first move. Your best first move is to figure out a way to create more cash.

Think like a wealth builder. How can you take your existing skill set and leverage it? What could you do right now to make an extra $50 or $100 or $500 dollars a day?

Focus your attention on creating more cash, and then your next move toward financial freedom will become apparent. It might be a matter of paying down debt, might be a tax strategy, might be an investment plan. But for the present, increase your income. After figuring out your baseline, it's the next logical step.

Article Source:

Lila Norden, internet publisher and business consultant, offers valuable information and insights for advancing your business and financial success. For helpful resources, strategies, and additional articles, visit FCI Money


Written by Dian Herdiana on 9:16 AM

A mortgage is a method of using property as security for the payment of a debt.

The term mortgage (from Law French, lit. dead pledge) refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage.

In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals or businesses can purchase residential or commercial real estate without the need to pay the full value immediately.

In many countries it is normal for home purchase to be funded by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Great Britain, Spain and the United States.

Participants and variant terminology
Each legal system tends to share certain concepts but vary in the terminology and jargon they use.

In general terms the main participants in a mortgage are:

The creditor has legal rights to the debt secured by the mortgage and often make a loan to the debtor of the purchase money for the property. Typically, creditors are banks, insurers or other financial institutions who make loans available for the purpose of real estate purchase.

A creditor is sometimes referred to as the mortgagee or lender.

The debtor or debtors must meet the requirements of the mortgage conditions (and often the loan conditions) imposed by the creditor in order to avoid the creditor enacting provisions of the mortgage to recover the debt. Typically the debtors will be the individual home-owners, landlords or businesses who are purchasing their property by way of a loan.

A debtor is sometimes referred to as the mortgagor, borrower, or obligor
Other participants
Due to the complicated legal exchange, or conveyance, of the property, one or both of the main participants are likely to require legal representation. The terminology varies with legal jurisdiction; see lawyer, solicitor and conveyancer.

Because of the complex nature of many markets the debtor may approach a mortgage broker or financial adviser to help them source an appropriate creditor typically by finding the most competitive loan.

The debt is sometimes referred to as the hypothecation, which may make use of the services of a hypothecary to assist in the hypothecation.

Mortgage by demise
In a mortgage by demise, the creditor becomes the owner of the mortgaged property until the loan is repaid in full (known as "redemption"). This kind of mortgage takes the form of a conveyance of the property to the creditor, with a condition that the property will be returned on redemption.

This is an older form of legal mortgage and is less common than a mortgage by legal charge. It is no longer available in the UK, by virtue of the Land Registration Act 2002.

Mortgage by legal charge
In a mortgage by legal charge, the debtor remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it.

To protect the lender, a mortgage by legal charge is usually recorded in a public register. Since mortgage debt is often the largest debt owed by the debtor, banks and other mortgage lenders run title searches of the real property to make certain that there are no mortgages already registered on the debtor's property which might have higher priority. Tax liens, in some cases, will come ahead of mortgages. For this reason, if a borrower has delinquent property taxes, the bank will often pay them to prevent the lienholder from foreclosing and wiping out the mortgage.

This type of mortgage is common in U.S. and, since 1925, it has been the usual form of mortgage in England and Wales (it is now the only form - see above).

In Scotland, the mortgage by legal charge is also known as standard security.

At common law, a mortgage was a conveyance of land that on its face was absolute and conveyed a fee simple estate, but which was in fact conditional, and would be of no effect if certain conditions were not met --- usually, but not necessarily, the repayment of a debt to the original landowner. Hence the word "mortgage," Law French for "dead pledge;" that is, it was absolute in form, and unlike a "live gage", was not conditionally dependent on its repayment solely from raising and selling crops or livestock, or of simply giving the fruits of crops and livestock coming from the land that was mortgaged. The mortgage debt remained in effect whether or not the land could successfully produce enough income to repay the debt. In theory, a mortgage required no further steps to be taken by the creditor, such as acceptance of crops and livestock, for repayment.

The difficulty with this arrangement was that the lender was absolute owner of the property and could sell it, or refuse to reconvey it to the borrower, who was in a weak position. Increasingly the courts of equity began to protect the borrower's interests, so that a borrower came to have an absolute right to insist on reconveyance on redemption. This right of the borrower is known as the "equity of redemption".

This arrangement, whereby the mortgagee (the lender) was on theory the absolute owner, but in practice had few of the practical rights of ownership, was seen in many jurisdictions as being awkwardly artificial. By statute the common law position was altered so that the mortgagor would retain ownership, but the mortgagee's rights, such as foreclosure, the power of sale and the right to take possession would be protected.

In the United States, those states that have reformed the nature of mortgages in this way are known as lien states. A similar effect was achieved in England and Wales by the Law of Property Act 1925, which abolished mortgages by the conveyance of a fee simple.

In the United States, mortgages became widely used starting in 1934. In that year, the Federal Housing Administration (FHA) lowered the down payment requirements by offering 80% loan-to-value loans. Next, banks, insurance companies, and other lenders followed the example. The FHA also lengthened loan terms by first introducing 15-year loans to supplant 3, 5, and 7-years loans which ended with a balloon payment. Until the 1930s only 40% of U.S. households owned homes; the rate today is nearly 70%. In 2003, total U.S. residential mortgage production reached a record level of $3.8 trillion through record low interest rates (though these continue to vary according to credit rating.)

Mortgage Equity Withdrawal - The Refinancing Trend

Written by Dian Herdiana on 5:20 AM

Mortgage Equity Withdrawal is the formal name for equity refinance, reverse mortgages or simply home loans based on equity (as the security for the loan).

Mortgage Equity Withdrawal rose to 8.7 billion pounds in the second quarter of this year to its highest since the third quarter last year, official data showed (on Tuesday 4th Oct 2005).

Mortgage Equity Withdrawal is a measure of the equity Britons have extracted from their homes but which they have not re-invested in property.

Sharply rising house prices in the last few years have encouraged a trend where Britons refinance their mortgages to extract cash which many economists say has helped support spending.

The Bank of England said that Mortgage Equity Withdrawal was up sharply from 6.437 billion in the first quarter of this year although it is still well below the 14.5 billion seen one year ago, when house prices were rising more than 20 percent annually.

The Bank of England has since cut interest rates by a quarter of 1% to 4.5 percent which could support Mortgage Equity Withdrawal in coming months, particularly as there are signs that the property market may be stabilizing after a year of stagnation.

As a percentage of post-tax income, Mortgage Equity Withdrawal rose to 4.2 percent from 3.2 percent in the first quarter of the year but is well down on 7.3 percent seen a year ago.

" Mortgage Equity Withdrawal appears to have found its way into increased holdings of financial assets (equities, bonds) as much as extra spending," said Geoffrey Dicks, UK economist at RBS Financial Markets.

"Generally the pick-up in Mortgage Equity Withdrawal is probably indicative of more `normalization' of the housing market but while it is saved rather than spent, the policy implications are not huge."

Official data last month (September) showed the saving ratio rose to 5 percent in the second quarter of this year from 4.5 percent in Q1 (also of this year).

Separate figures showed UK residential construction barely grew in September, putting in its weakest monthly performance since May.

But what does this mean in real terms?

There are several key points in this statement, these are:

1.People are refinancing their homes because of increased value

2.People are not necessarily spending the money on the property

3.People are not necessarily spending the money in the high street

These three points are important to all of us, not just the policy makers. Here’s why.

Let’s consider the first point, people are refinancing there homes because the equity has grown rapidly.

This statement tells us that the housing market although not sky rocketing as it was a couple of years ago, is none the less still rising.

The second point tells us that when people effectively withdraw this money it is not to improve the home itself, hence the equity of the property will not grow at a better rate than market rate.

The third point is perhaps most telling, people are not taking the money and spending it in a hap hazard manner but are potentially saving it (bonds, shares, bank accounts).

So what do this mean for us?

Well, it’s a bit of mixed signals heads up if you like.

The general population (property owners) are slipping into ever increasing levels of debt (if you’re refinancing your mortgage or ‘freeing up equity’ as the agents put it, you are effectively borrowing money) – unless it’s a reverse mortgage.

People who are refinancing are not improving the quality of the property with the money and so if the market takes a fall their property will devalue as much as the next property (whereas if they’d returned some of the capital into improvements they would at least be sitting on a lesser slump in value).

Finally, and perhaps the most damming sign is that people are saving more, this is not a good sign. In a healthy economy the rate of saving is low, this is primarily because confidence is high (people aren’t worried about the bills or their jobs) but the fact that more people are now starting to save money rather then spending it means that the retail sector will be taking a hit, this means that the bottom end jobs will be in danger, this in turn has a knock on effect in the service sector and becomes a vicious circle – the end result being market stagnentation .

But what this trend does illustrate quite simply is that you can potentially get more money back in savings interest than you pay out in refinancing interest – so at the moment the smart moneys in equity refinance.

The author, Paul Foley, is a successful counselor and Webmaster of the refinance information site http://www.mortgagehelp4u.comThe site is dedicated to providing information to those who need it regarding getting out of debt by means of financial tools. Paul also runs the site - make money the easy way.
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Finding the Best Student Loan Consolidation

Written by Dian Herdiana on 6:39 AM

Many people need to take out student loans in order to further their education, with the promise of repayment within a certain time frame after getting your degree. This puts a financial burden on graduates who are just starting out in life, and just beginning their careers. Student loan consolidation is now available, to help meet take command of that debt. The following paragraphs will describe what this is, and provide advice on seeking additional information on the subject. When you consolidate you are generally given a longer period of time to repay than you were given with the unconsolidated debt. The time period can be up to 30 years. This means that your payment will often be lower than the total payments you would be making without consolidation. You will often have to pay more interest, though, because the length of the loan is longer. But the interest rate is generally a fixed rate, meaning it will never change throughout the entire duration of you loan. This is a huge advantage, because most are carry a variable fixed rate that can change at any given time. Many resources are available to help you find more information regarding the subject including: · many financial aid offices of learning institutions · many lending institutions · via the world wide web When searching for more information it could also prove to be very helpful to contact the Department of Education (DOE). The DOE commonly offers numerous helpful resources on the subject. If you have any questions regarding student loan consolidation, the DEO can most often help you obtain the answers you need. EASI, or Easy Access For Students and Institutions, is another place you can seek answers to your questions. Their website is located at can be very helpful in finding the answers you need about repayment of your debt, even if you do not qualify for student loan consolidation due to default on your original loans. Consolidation has many clear benefits, but before you obligate yourself by signing your name on the dotted line, you should do your research and obtain all the information you can find. In doing so, you will enable yourself to find the best solution available. Know Your Credit Score If your credit score is good, you should not have any problems getting a great rate. If your rating is over 660, you will automatically qualify for the best rates, and you do not have to research any more. But if your rating is under 600, you may want to evaluate ways to raise it before seeking student loan consolidation. Your score is a main factor in determining the type of interest rate you may receive from the lender. If you have good credit, they can believe you will pay back the loan without default. Thus, they will often offer you a lower interest rate. But if your credit is not good, they will give you a higher interest rate to help insure they will receive repayment. If it is very poor, you may not even qualify for student loan consolidation. There are several ways to obtain a copy of your credit report including: · online requests · written requests · by requesting in person Knowing your credit score is the first step in gaining student loan consolidation information. Knowledge is power. The more knowledge you have on the subject, the better chance you will have at obtaining the best rates from lenders. Knowing your score can also help you to rid your credit report of reports that should not be there, as well as aid in the prevention of identity theft. Obtaining Information From the Internet With the world wide web gaining in popularity and growing, it is a wonderful tool in helping obtain the best interest rates. Educating yourself on the subject has never been easier. By utilizing any search engine, you can generate vast amounts of information with just a few clicks of the mouse. There are many tools available online, to assist you in finding the best interest rates available. These tools include: · free credit check links · student loan consolidation calculators · interest rate estimators Knowledge is the key in finding the best rates available. The more knowledge you have on the subject, as well as knowing your credit scores, the better your chances of getting a good interest rate.

Selecting a Shopping Cart System for Your Website That Makes You Money!

Written by Dian Herdiana on 7:13 AM

For any serious online business, a shopping cart system is not only a great way to facilitate the purchasing process, but it’s absolutely necessary. However, before choosing the right system, you first need to determine if you even need a shopping cart system at all. If you are selling only a couple of products and do a relatively low volume of sales, a free ecommerce from may suffice just fine. Alternatively there are also options available from and Though, if you do more than a few hundred dollars of sales a month or have multiple products, a good shopping cart system can actually make you more money - and do it seamlessly and automatically.

Choosing the right shopping cart system for your online business is absolutely critical, and it’s not something that you want to even consider skimping on. You might notice that I call it a “shopping cart system” and not just a “shopping cart.” The reason is simple: a good shopping cart system usually has a truckload of other features integrated right into it, such as autoresponders, affiliate management and ad trackers just to name a few.

There are a couple of ways to go about getting a shopping cart:

1. You can buy the software license outright and install it on your server.
2. You can use free software found on the web, or software that comes included with your web hosting.
3. Or, you can sign up for a third party service.

For simplicity sake, we’re going to concentrate on option 3, signing up for a third party service. Purchasing and installing software on your server is expensive and technical and not a viable option for most people, and free anything on the Internet is generally a bad idea, especially when it’s the size of your bank account on the line.

If you are unsure of what the key features of a good shopping cart application are, here are some tips which are likely to come in handy when comparing various shopping cart options:

The number one thing you should look for, and which any decent cart should have, is the ease of use. If the shopping cart system is difficult for your sites visitors to use and make purchases, they will abandon you at the checkout and you’ll loose a ton of sales. One of the best ways to evaluate a shopping cart for its ease of use is to use it yourself and try it first hand. The simpler, more foolproof and user friendly it is, the better.

Not only does a good shopping cart complete the sales process for you, but it also has the ability to upsell customers, distribute electronic products, calculate shipping and taxes, send info to credit card processing companies, and even send order info to a fulfillment house among many other things.

If you can, try before you buy – most carts come with a free or heavily discounted trial. What other features/benefits does it offer? Does it have an integrated sequential autoresponder built in? Are you able to track ads and sales data? Does it have an upsell and cross-sell module available to make you more money? Some of the better carts even have built in affiliate management which allows you to run and track your own affiliate program seamlessly. I shouldn’t need to tell you how important all of these features are to have, and how much extra money they can make you.

Another important aspect is the level of flexibility the cart offers. This is not only for your customers, but for you as well. Does it allow them to calculate several different shipping options, and will it calculate taxes appropriately based on their location and purchase. Does it have built in instant digital delivery available? Also, while shopping a user might want to change various parameters at any stage, such as quantity of products, shipping information and any other instructions relating to their shopping process. Make sure they can do it easily.

Easy connectivity to payment options is something else that you should strongly consider, since different online users may prefer different methods of payments, which you’ll want to make sure your cart can accommodate. One the Internet, credit card is king, so make sure Visa, MasterCard and American Express are the minimum you have available. And if you currently have a merchant account, you will also want to check and make sure they cart you choose is compatible with your payment gateway.

All reporting functions offered should be relevant and elaborate. As an online retailer you need all the information that you can get about your users including their preferences and pattern of usage. Good shopping cart software should provide you with a good set of reports which provide valuable data which can be mined for business purposes. Reports tend to provide you with a road map on how you should proceed in making the shopping experience smoother for your user.

Above all the shopping cart system you select should be helpful from the point of view of the customer, and it should also help you towards planning and managing certain aspects of your e-business and automating them as much as possible. In addition, a system that will help analyze your website’s effectiveness, your sales records etc. with most of the other components mentioned above would be an ideal shopping cart system for your business.

Many of the points discussed above will not only affect your site technically, but they will also influence the revenue generation potential of your ecommerce business. That’s why I can’t emphasize how extremely important it is to choose the right system.

The shopping cart system that I use, and strongly recommend, along with most of the top Internet Marketers, is ( This system also features a full featured integrated autoresponder with email broadcast capability, complete affiliate management, ad trackers, custom forms, upsell modules, and the ability to calculate shipping and taxes in every way possible, and a free 30 day trial.

If you want to install the software directly on your own web server, something like VP-ASP ( can do the trick. It comes with an affiliate module, tax and shipping calculation, digital delivery and tons of custom formatting options available. And since you’re purchasing a software license, there are no monthly fees.

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Justin Michie is a well respected Internet Marketer and author of the brand new Internet Marketing book “Street Smart Internet Marketing. To download his FREE introductory ebook titled “99 Internet Marketing Tips – That You’ll Want to Know” go to For more free articles or to sign up for Justin’s newsletter check out

How do I know whether or not I will end up saving money when refinancing my home loan?

Written by Dian Herdiana on 8:54 AM

To save money, you must live in your house longer than the "break-even period" - the period over which the interest savings just cover the refinance expenses. The larger the spread between the new interest rate and the rate on your existing loan, the shorter the break-even period. The more it cost to get the new loan, the longer the break-even period.

But be careful. The break-even period is not the cost of the new loan divided by the decrease in the monthly mortgage expense. This broadly used rule of thumb is a misapplication of the principle that when explaining something to the buyer one should "keep it simple." Simple is fine, except for when it is wrong.

The rule of thumb does not permit for the difference in how rapidly you pay off the new loan as opposed to the old one. Let us say that in 1996 you took out an 11% 30-year fixed rate loan, which now has a $100,000 balance and 21 years to run. You refinance into a 7% 15-year loan at a fee of $3,750.

Monthly expense on the old loan = $1019

Monthly expense on the new loan = $899

Reduction in monthly expense = $120

$3750 divided by $120 = 31 months

The rule of thumb say that you break-even in 31 months. But, because of the shorter term and lower rate on the new loan, in 31 months you would owe $7,041 less than you would have owed on the old loan. So, the rule of thumb in this case critically overstate the break-even period. Taking account of difference in the loan balance, you would

actually be in advance of the game in 12 months, as showed below:

Savings in monthly expense: $120 for 12 months = $1440

Plus lower loan balance in month 12: $2620

Equals total saving from refinance: $4060

Less refinance cost: $3750

Equals net gain: $310

Next think about the case where an 11% loan taken out in 1996 was for 15 years, and now has only 6 years to run, while you plan to refinance into a 30-year loan. With the lasting term shorter on the old loan and longer on the new one, the difference in monthly expense rises to $1238. Using the rule of thumb the $3750 cost would be recovered in only 3 months. But this fail to consider the slower loan repayment on the new loan. Taking account of the slower repayment, you do not really come out in advance until 14 months out.

The rule of thumb (dividing the upfront cost by the decrease in mortgage expenses) approximates the true break-even period only if the term on your new loan is close to the unexpired term on your old loan. In other circumstances it can lead you critically off course.

The rules of thumb also ignore the detail that if you had not refinanced you could have earned interest on the money you pay upfront to refinance; and if you do refinance and the expense is reduced, you can now take home interest on the savings.

Refinance Your Home Equity Loan

Written by Dian Herdiana on 10:05 AM

Refinancing your home equity loan is an excellent way to save money. By refinancing your home equity loan you can lower your interest rate and finance for a longer or shorter term. Some things to consider before refinancing your home equity loan are the possible tax benefits, how long you intend to stay in your home, what your long term financial goals are, and how could you use the money to benefit your family. Refinancing your home equity loan is a great way to save money each month.

A home equity loan is a great way to get the cash you need and lower your monthly payments at the same time. If you already have a home equity loan you may be able to refinance at a lower interest rate and save money. With one short application you can get several quotes and be pre-qualified by multiple lenders. The quotes are free and there will be no credit check until you select the lender that will offer you the best terms. Refinancing your home equity loan could give you extra cash each month and drop your interest rate dramatically. Bad credit, past bankruptcy, and foreclosures are all considered. There are numerous options available in refinancing your home equity loan.

One simple online quote request will give you several quotes from lenders who can design a loan package especially for your situation. If you are a homeowner with an existing home equity loan, consider refinancing to take advantage of the many loan options offered by mortgage lenders. Your quick online quote

request will give you quotes from several lenders who can refinance your home equity loan even if you have poor credit. There is no mandatory credit check so you will only have one inquiry on your credit report after you have selected the lender that is right for you.

Refinancing your home equity loan is a smart way to save money and lower your monthly payments. Find the best lender for you with a fast, no-obligation application that you can complete online in just minutes. Even a small decrease in your interest rate can save you thousands of dollars over the length of your loan. Contact a mortgage broker or lender today and find out how much money you can save with one short application. You can be pre-qualified in just minutes. Refinancing your home equity loan makes perfect sense for those who want to lower their monthly payments and save money each month. Your online application will put you in touch with lenders who are able to offer you great terms and low interest rates, even if your credit is less than perfect.

Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Written by Dian Herdiana on 7:06 AM

Saving money with lower rates isn't the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.

Better Rates

A 15 year mortgage has a better rate than a 30 year mortgage offered the same day - usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.

Offers Self-Discipline

Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.

It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids' college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods - 15, 20 or 25 year home loans.

Factors To


Low rates aren't the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.

However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.

You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.

In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.

Cash Out Refinance Mortgage Loans ? Home Equity, 2nd Mortgage Or Cash Out Refinance Loan

Written by Dian Herdiana on 7:04 AM

There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinance, you are refinancing your entire loan. Let's say you owe $300,000 on your home and you want to get $10,000 in cash out. If in refinancing your rate will be the same or higher, then you will be losing an extraordinary amount of money in fees just to get a $10,000 loan. In a case like that, you would definitely want to go with a home equity loan.

Home equity loans are better if:

1. You have a large home loan yet only need to cash out of a small amount of equity

2. You need to borrow up to 100% of the equity in your home

3. You want a revolving credit line

4. You want a payoff sooner, or longer than the term of the rest of your mortgage loan

On the other hand if you are:

1. Going to refinance anyway

2. Wanting to borrow a large percentage of your

home?s equity

3. Refinancing for a much lower rate

Then, a cash out refinance loan may be best for you. Of course, the best way to tell is to actually sit down and do the math. These are just guidelines; the real test is in the math. You can consult a refinance calculator and a home equity loan calculator and figure out which one will save you the most money in the long run. Compare the total amounts you will spend in interest and fees. If you are planning on a cash out refinance, make sure that you are refinancing with a low enough rate to justify the fees to refinance. Your loan specialist should be able to help you figure out which one is best for your needs.

Adverse Credit Remortgage: Refinance at Better Terms

Written by Dian Herdiana on 2:47 AM

Getting a remortgage with adverse credit is a daunting task and it is increasingly becoming a widespread problem in UK. An adverse credit remortgage is a type of mortgage, which is particularly used by people who have adverse remarks in their credit history.

Adverse credit ratings are rising as people are finding it difficult to repay the loans they took in order to remedy their financial exigencies. The credit ratings are remarks given by your previous creditors based on your repayment history. If you are punctual and prompt in repaying the installments they give you a positive remark and a negative rating incurs, if you miss their installments and are erratic in the repayment schedule.

Lenders are wary of this negative or adverse credit rating. They find it risky to lend any amount to such persons and reject their applications in most of the cases.

While, applying for an Adverse credit remortgage, the borrower has to face two kinds of situations. In the first case, although he has an adverse credit rating against him, he can offer something like a house or home equity as a collateral to the remortgage. In second case the borrower with the adverse credit history doesn't have anything to offer as collateral or the value of collateral is not adequate to guarantee the loan.

The lenders, if they find that they can get something as collateral for the remortgage offer, are prompt in lending as compared to a situation where they have to lend solely on the basis of creditworthiness of the borrower. The lenders are comfortable by the fact that if the borrower defaults in payments, they can repossess the collateral. Depending on the collateral and creditworthiness, lenders fix interest rates, lending amount and the repayment schedules.

Remortgaging involves changing the mortgage without changing the existing house or property. Adverse credit remortgage can be used for getting a better deal on mortgage from a different lender. It can also be used to get an improved deal on mortgage from the existing lender. Adverse credit remortgage may also be used to provide funds or to get a loan on the increased equity in home or property. They are very useful in consolidating existing debts from various sources into one single manageable loan. Emergency

expenditures like the purchase of a car, a holiday, some reconstruction or medical bills can be funded by such remortgages.

Getting an adverse credit remortgage to finance these purchases is considered a wise option because remortgage offers lower interest rates and easy repayment options as compared to other methods of borrowing.

People with adverse credit should be very cautious while taking a remortgage. Mortgage lenders in UK are squeezing such people with higher interest rates and unreasonable terms and conditions.

Remortgaging involves many fees, which increase the cost of the process. There are early redemption penalties, re-appraisal of property, solicitor fees, office and conveyance charges, which have to be taken into consideration while taking an adverse credit remortgage. The fact that a borrower has an adverse credit rating makes the situation even worse for him. As the lending market in UK is very competitive the borrower is advised to shop around for lenders, which offer zero product fees, cashback, free basic property valuation and minimum fee for legal and other expenses. A good lender, who provides adverse credit remortgage will negotiate the best possible deal on prepayment penalties for its client. Finding such a lender is not easy but ultimately it will be worth the effort.

For most of us, if we have something to offer as collateral, getting an adverse credit remortgage will be quite easy. The new lender will ask for all the documents and complete the formalities. If everything goes smoothly, it won't take long to get an adverse credit remortgage.

Andrew baker has done his masters in finance from CPIT. He is engaged in providing free, professional, and independent advice to the residents of the UK.He works for the Secured loan web site uk finance world for any type of uk secured and unsecured loan please visit

The Rumors of Ecommerce Death

Written by Dian Herdiana on 2:45 AM

As Nasdaq sputters along in dot com shame, a few million few dogged Internet
consumers have ignored the crash. They continue to happily buy away. The
good-news story is not popular with business writers, but Web retailing
continues to grow seemingly unaware that the online mall is crashing down
around them as they choose garden tools, sell sports cards and order vacation
packages. Things aren't perfect. There has been somewhat of a dip since
Christmas, but I think most Net retailers can live with a post-holiday.
Retailers have weathered after-Santa blues since the English switched from
wassailing to kids toys in the mid-1800s.

We decided to take a look at recent reports on Internet retail sales just to
see if the Net stock gloom was blunting the steady expansion of online
commerce. We found some softening in the rate of growth, but we certainly
didn't find any contraction in consumer behavior. The shrinking effect right
now seems limited to the number of dot coms rather then the number of
consumers. In fact, if you subtract the bizarrely heightened expectations for
the Internet, its growth is coming along just fine. By any standards other
than the Net-boom mentality, Internet expansion continues to be fairly

Net buyers hit ten quarters of continuous buying

Greenfield Online reported that for 10 consecutive quarters, 60 percent of
U.S. Online consumers have made at least one purchase on the Web within a
90-day period. And 28 percent of these shoppers have clicked on Internet ads
while shopping. Not surprisingly, those with an annual income of $50,000 and
above are more likely to purchase goods (81 percent) than those whose income
is below $50,000 (64 percent). Women on the Net buy at a slightly higher rate
(74 percent) than men (71 percent). The top categories of goods continues to
be books and CDs, followed by clothing, toys and computer software.

Rich buyers seek service basics online

Forrester Research looked at the shopping habits of rich consumers, those
with investable assets on $1 million or more, and found that these shoppers
are more interested in strong basic serve than they are in virtual
exclusivity, extravagance and entertainment. Affluent shoppers have been
buying linger,

feel more comfortable buying, buy more frequently and, of
course, spend more money," said Ekaterina O. Walsh, a senior analyst at
Forrester. "They buy online for the same reasons for the same reasons that
all online buyers do and care about price and positive experiences with Web
stores." Forrester recommends that sellers of luxury goods should concentrate
on purchasing ease and a convenience return process.

Visitor traffic dips

PC Data Online found that traffic to leading ecommerce sites declined about 4
percent in February following an 18 percent seasonal drop in January. Goldman
Sachs analysts cited port-holiday seasonality, a slowdown in the rate on new
consumer adopting ecommerce and slower overall consumer spending as the
factors in the slower month-by-month growth of Internet retailing. However,
this year's figures are up 63 percent over last year. Hey. Did anybody see
that? I'll say it again. We're up 63 percent over last year! Some blues.

Features that will keep your sales growing

Consulting giant PricewaterhouseCoopers released a survey that identified the
site features that are most likely to capture sales. The research found that
with the exception of search capabilities and close-up product views, most
Website features are never used by the majority of Internet shoppers. The
search function is overwhelmingly the top feature used by consumers, with 77
percent saying they have used search functions while shopping.

Other site features such as wish-lists and personalization were found to be
less important to shoppers. As a side note, we found a study by the
International eRetail Association that listed wish-lists as a tool that works
well for building loyalty, so go easy on making assumptions based on Internet

The take-away on all of the recent information about Internet retailing is
that it continues to grow rapidly in spite of the gloom that fills the
business media. To paraphrase Mark Twain, the rumors of the death of retail
ecommerce have been greatly exagerated.

Refinance mortgage loan

Written by Dian Herdiana on 7:54 AM

A refinance mortgage loan can help you get cash for the equity in your home. Home equity refers to the value of the house that has already been paid for. This will include your down payment and the all the monthly payments you have been making. Once you have built up a substantial investment in your home, you can use that to get a refinance mortgage loan, which will give you cash on your equity.

A refinance mortgage loan, like most other loans, will have to be paid according to a monthly amortization schedule, which will include the principal payment and the interest payment for the month.

So what makes a refinance mortgage loan different? It is the low interest rates that make it appealing to credit consumers. For example a low rate refinance mortgage loan can allow you to pay off your credit card, department store card, and other high interest consumer loans. This means instead of paying 20-25% interest every year, you may be down to only 3-6% interest payments. Thus you could have a lot of money saved up over time, which you can use to eliminate all your debts or just pay for a nice vacation trip abroad.

One thing you

should consider is the higher risk of a refinance mortgage loan. Your house is the collateral for the loan and if worse comes to worse you could end up losing your home. This is why it is a riskier loan to borrowers compared to unsecured loans such as a credit card balance. On the other hand a refinance mortgage loan is a safer bet for lenders as a property means they will have a means of regaining their debt even if lenders are unable to continue monthly payments.

A refinance mortgage can get you access to cash. You can use the money to pay off other debts, take a vacation or start a home improvement project. Without the loan it may take several years to save up enough money to fulfill your dreams of a vacation or a new car.

A refinance home mortgage loan can free up capital from your home equity. While your home equity would remain unusable without the loan, a refinance mortgage loan can help you to get cash for it and use it as you wish.

Giving Finances a Breather Through Loans for Unemployed

Written by Dian Herdiana on 7:51 AM

Martin graduated of the college with dreams of a highflying career. However, the subsequent unemployment put a check on his dreams. It has now become a matter of making the ends meet because of the various debts mounting up on his account and the unemployment allowance falling deficient of meeting even the basic needs.

Almost every unemployed person faces a situation similar to the above until they are exposed to loans for unemployed.
Loans for unemployed
present various options before unemployed people to enable them to purchase the various necessities along with a lump sum payment for repayment of debts, buying holidays, and for purchasing cars.

Stable financial income is a prerequisite for the normal loans. Going by this logic, an unemployed person would have never qualified for a normal loan because of an absence of any source of income. However, since unemployment is not a rare incident and because the unemployed people cannot be left to fend for themselves (humanitarian grounds), loan providers have designed a few criteria that will make the unemployed people eligible for financial assistance.

Being a homeowner minimises most of the risk emanating out of unemployment. The loan provider knows that in the event of the borrower not repaying the loan in full, it can utilise the home to recover the amount unpaid. The minor degree of risk is reflected in a lower rate of interest and more flexible terms.

The home kept as collateral, has more of a nominal rather than a tangible role in the loans for unemployed. The loan provider holds the right of ownership to the house rather than the house itself. Thus, the borrower continues living in the home while the home continues backing the loan.

To be more concise, the loan for unemployed is taken against the equity in the home. This is the value, in terms of money, that a house will fetch if sold in the market. As a loan is taken, the equity in the home depletes. The equity is gradually replenished with monthly or quarterly repayments.

The method that a borrower chooses to benefit from the loan for unemployed further classifies them into two. These are Home Equity Loan and a Home Equity Line of Credit better known as a HELOC. Under a home equity loan, a borrower draws the entire amount at one count. This is particularly when the borrower has sizable expenses to make. Debt consolidation is the most popular use to which the home equity loan is put to. The small unemployment grant from the government is not able to sustain the borrower?s expenses during the term of unemployment, and a mound of debts gets collected during the

period. Cheap finance through home equity loans will present an easier method to repay such debts. Another important uses that a home equity loan is employed to are buying a car, paying the bills incurred while vacationing, and using it for home improvements, that in turn adds up to the equity in the home and thus opens newer opportunities for getting loans.

A home equity loan however, will not suit the cases where the period of unemployment is predicted to last long. Having used up the entire equity in home, the borrower will be left with nothing to pay for his necessities during the subsequent period. In this case, a home equity line of credit will be more suitable. HELOC provides assistance to the borrower as and when the needs arise. Since the balance of the HELOC changes regularly with the repayments and withdrawals, the borrower is charged on the loan amount drawn rather than the entire loan sanctioned. The interest in HELOC is charged on the basis of the standard variable rate. This proves disadvantageous for borrowers at times when there is an upward surge in the interest rate. The interest rates rise and increase the repayments in turn. A novel method of escaping the high interest rates will be by requesting for a guaranteed introductory rate.

The financial options for unemployed people without sufficient collateral are no less. A perfect credit report will play an important role in their case by inspiring confidence among the loan providers regarding the borrower?s capability to repay loans for unemployed. Interest rates will certainly be different because of the absence of collateral. Like the unsecured loans, unsecured loans for unemployed carry a higher rate of interest.

Loans for unemployed show that the unemployed people do not have to subsist solely on a meagre grant from the government. Numerous deals from a multitude of loan providers are waiting for the unemployed people to employ loans for unemployed to disburse their expenses.

Andrew baker has done his masters in finance from CPIT.He is engaged in providing free,professional,and independent advice to the residents of the UK.He works for the Secured loan web site loans fiesta for any type of loans in uk,secured loans,unsecured loans,debt consolidation loans please visit

Prepare Your Personal Financial Freedom Plan

Written by Dian Herdiana on 11:24 AM

Prepare Your Personal Financial Freedom Plan

Your personal financial freedom plan is the bridge to your independence day. It is a personal business plan, that details where you are, where you want to be, and how you intend to get there.

In simple terms, it breaks your goal/dream into small discreet, do-able chunks. Remember the story of how to swallow an elephant...cut it into tiny chewable bits, and chew a piece one at a time.

You can see clearly where you are heading. You have it in the canvass of your mind. You have an idea how to get there. You have have a plan. A plan that does not have components that are executable on a daily basis is as good as useless. That is what your personal financial freedom plan does for you. It reduces the big picture (your elephant) into executable (chewable) chunks.

An Ilustration
Lets take a very simple illustration. Imagine you are 30years old. You want to quit your day job at 55, to go do something with your life. You approach a financial adviser, and after a session or two, you decide you want to take out an annuity that will put in your pocket, $2,000 for the rest of your life.

Using simple interest, and ignoring everyday reality of rate changes, taxes et al, at 5%, the financial adviser told you you need $480,000.00 to swing it.

At 30, you have 20years to independence day, which means you need to save $19,200 a year to hit the magic number at age 55. This translates to $1,600 per month. You may decide to end the break down here, or take it a step further...$54.34 a day.

With these facts and figures, you get your brain to work. How do I save $54.34 a day or $1,600 a month. With your last month's income and expense account, you set to work. You know where your money goes. You decide which item to sacrifice, in order to reach your goal.

With a goal and a plan in place. It is easy to focus. You find it easier to make do with your 3year old automobile, scale down your vacation plans, delay gratification, ignore the Joneses etc. Within your plan are reward mechanisms to reward milestones achieved.

Your savings balance increases steadily, your pay raises etc gets ploughed into the plan. Before long, you are looking at hitting the magic figure at age 50...

There is one heady feeling that comes with it. You are in control of your finances. You decide what goes where.

It's Up to You
This is a very simple ilustration, but holds true for all scenarios. It is possible to make it without a plan clearly spelt out. But for most folks, it helps to have a blueprint.

If you plan to own a business or become an investor, you need to invest in acquiring financial literacy. You will be working with figures. You need to understand the language of those figures, what they mean, the stories they tell...income statements, profit and loss accounts, balance sheets, cash flow, financial ratios etc...

Your destination determines how much you need to learn. If you are like the guy above who is dreaming retiring at the age of 55 with $2,000 a month plus pension, then compound interest will see you home...

Prepare Your Personal Financial Statement

Written by Dian Herdiana on 11:21 AM

Your personal financial statement gives you a panoramic view of your cash flow scenario. In simple terms, you see at a glance, where your money is going.

Have you ever wondered where your money went? You are not alone. It happens all the time. The problem is, you are using your brain (RAM) to store your financial records, instead of paper or financial software (Hard Disk).

Our brains (like computer RAM) was never meant for information storage. It was meant for information processing. We clutter up our brains when we use it to store information. Paper and other information storage devices does a much better job, freeing up your brain to concentrate on thinking.

If you use your brain to store information, you will lose bits and pieces of it as time goes on, especially if you use it to store figures. That is the main reason why our sums don't add up, when we reconcile our finances after all the money is gone. We are left with the question, "where did all the money go?"

That is why it is critical that we itemize our expenses online, real time, that is ASAP. If you leave it for later, you lose some information. This data is required to prepare your personal financial statement.

Your personal financial statement I am refering to here is not the one you fill out for your mortgage lender or creditor. That one is more general. This one is for your own consumption. Your personal financial reality TV show. It chronicles the whole show, uncut.

These figures tell the story of your financial life. You can see where you goofed, and where to make ammends, and apply the knife. Although you cannot see what you did with the money, you will be shocked to find out that the sums do add up. You can see at a glance, those nice things you can do without.

Forefront of the Hottest Battle

Keeping a record of your expenses is where the battle is won and lost. It is at this point that most folks throw in the towel. Without these figures, you cannot prepare a realistic personal financial statement. Your personal financial statement is a crucial document, and is needed to prepare other documents (Balance sheet and Financial Plan (Aka Financial Freedom Plan) etc).

To be able to budget effectively, you need to know how much you spend in a month. If you just put a figure on paper, you will be running a perpetual buget deficit, and a black hole will become a permanet feature of your budgets

Gathering this data requires a whole lot of discipline. It is what I chose to call “the forefront the hottest battle”. It seems to be an unlikely theatre, but this is where most people give up the fight, and with it, their quest for financial freedom.

It may sound like an overstatement. It is about control. Without these documents, you are clueless as to your financial state present past and future. You cannot control what you do not know. You can make as much money as you want, but power without control is a recipe for disaster…

Decide Your Route to Financial Freedom

Written by Dian Herdiana on 6:47 AM

The decision as to what route to take to achieve financial freedom and exit the rat race depends totally on you. Nobody can take that decision for you. That decision is wrapped up in who you are, what your core talents and natural core competencies are, and your dreams.

Financial freedom is not about money. I cannot emphasize this enough. I see people complain about being told stories, and not "how to" make money. If you want to make money, getting a job is a good place to start, or try your luck at the lottery. If you want to achieve financial freedom, you have to decide which route to take. There is no one formula that fits all. The "how to" can only kick in after you have determined your route. Telling a writer how to become a guru in stock options is a waste of time and energy. Discover your lane, and stick with it.

Go With Your Flow
Let's assume you finally decide that real estate is your turf, the "how to" becomes easy. There are a lot of books on this subject. There are gurus in this field, online and offline, who can walk you through step by step, maybe for a fee. Some of them organize seminars, and answer your questions one on one. Some have mentoring programs, where you can enroll and work out the nitty-gritty and brass tacks. Based on the knowledge you have gathered through study and research on the field, you are better placed to know which guru to believe, what seminar to attend, and can easily sniff scams a mile away.

If you have not done your homework well, and expect to be spoon-fed with a turn-key solution, you are simply taking a swing in the dark, and can easily fall prey to scams, which are two a penny on the net.

Imagine you have no clue which route you want to take. You will attend any seminar that that looks appealing, you are simply jumping from pillar to post. If you do not make the decision yourself, circumstances around you will make it for you. That is why it is very important you get it crystal clear in your mind which route you want to take. It is when you have decided on the route, that you can develop a road map.

Back to You
Your most important asset in this journey is your mind. Using your mind is hard work. It does not come naturally. If it did, we would all think more and work less, and would all be rich by now. It is natural to act before thinking. I guess this is because acting is based on what you see, while thinking is based on what you cannot see.

You know yourself more than anybody else. You know what you really want to do. You have to make that decision, with money out of the picture.

It is after you have made that decision that you decide how to make it profitable. This way, you remain within the domain of your passion, and then make money while having fun. If money is the primary driver of your decision making process, you may miss out entirely on what you really want to be doing, and go running after money. Even if you end up making tons of money, you are working for money, and not having fun. You are still a slave, a highly paid one.

So before you start, decide which route to take, within the domain of your talent and natural core competency. After having decided stick with it, though thick and thin. It is a matter of time, the results will begin to show. You are ready to spread your wings and fly...

Starting A Business

Written by Dian Herdiana on 6:44 AM

Starting a business is unarguably the fastest way of exiting the rat race and attaining freedom. Starting a business is not an undertaking that should be taken lightly, and rushed into. Out of a hundred start-ups, ninety fail in the first five years. Of the surviving ten, nine fail in the next five years. That means that of the hundred that shot off the starting blocks, there is only one man standing at the tenth anniversary.

These are intimidating odds, odds you have to reckon with, as you prepare. Most of the “failures” fail before they start. Lack of adequate preparation is the major single cause of business failures. There are so many rivers to cross before opening day. Choosing the right business, adequate market research, feasibility studies and business planning, start-up capital, experience, passion, entrepreneurship etc etc…

This article is not about how to start a business. There are tens of thousands of how to sites, some which will be recommended at the end of this article. This article is meant to inspire you to go for it, and surmount the obstacles. Put your act together, cover all angles, respect the odds and prepare for setbacks, for they sure will come calling.

Start Small
The safest way is to take baby steps. Start small, learn the ropes and gain more confidence to take it to the next level. By starting small, you make inexpensive mistakes and your ability to recover and move on is higher. The bigger you start, the bigger the magnitude of setbacks you will face. In the face of the magnitude of the setback, many give up, throw in the towel and call it a day.

Setbacks sure will come. Some people call it failure. Whatever the nomenclature you chose, they sure will pay you a visit, so you better get prepared. My favorite take on this is in Rich Dad’ s Retire Young, Retire Rich. Rich Dad gave young Robert the Wright brothers’ perspective on failure:

“Those young men knew they were going to fail, so they found a safe piece of ground to fail on. They did not jump off bridges or cliffs. They found a large flat piece of ground with a good strong wind, and practiced failing until the day they could fly...

Recognize the odds. Prepare for them. Do your homework well. Most of the work is done at the preparation stage. There are so many angles to cover, financial, legal, real estate, insurance, company and allied matters, taxation, human resources etc. leave no stone unturned. Don’t make the mistake of believing that passion and doggedness alone will see you through. If you are operating a wrong business model or faulty business system, you are swimming against the current. The more prepared and educated you are about the area you are going into, the lesser your risks and higher your chances of success.

In ancient societies, one does not just start a business, you serve apprenticeship for a certain number of years before you go solo. That way, you are not operating in a new terrain. Don’t venture out starry eyed like lovelorn teenagers that believe that love conquers all, money does not matter. It does.

Go For It
Your success or failure in business is decided in the theatre of preparation. However, you cannot continue preparing forever. After having done all, a time comes to just do it. The night before opening day is the scariest of all. Like a pilot, go through your instrument checks. Confirm that all systems are ready to go. Say a prayer, close your eyes and jump…

A Mortgage Refinance with Bad Credit - The Pros and Cons

Written by Dian Herdiana on 8:22 AM

To many, the term 'bad credit' is the end of the world when it comes to getting financing in the near future. However, it doesn't always have to be like that, you can take the bad credit mortgage refinance option!

To many, the term 'bad credit' is the end of the world when it comes to getting financing in the near future. However, it doesn't always have to be like that, you can take the bad credit mortgage refinance option!

Mortgage refinance vs. equity finance

It is essential at the outset that you understand there is a fundamental difference between mortgage refinancing and equity financing. Basically, with equity financing you are using the surplus amount you may have stored up in your property between your outstanding mortgage amount and the appraised value of your home. However a mortgage refinance is where you find a new lender willing to lend you the whole appraised value of your property, the sum of which you then use to repay your existing mortgage lender and the remaining sum you can utilize in any manner you wish. Because of this, you are faced with a different set of problems than would be the case with an equity financing.

The pros of a bad credit mortgage refinance

Aside from any possible equity financing you can do with your property, without doubt the biggest upside to a bad credit mortgage refinance is the fact that it is a long-term and cheap form of borrowing. Interest rates are likely to be low and, possibly, can even be fixed. You could even possibly benefit from certain tax advantages from a bad credit mortgage refinance.

Because of this, bad credit mortgage finance can allow you to do things financially that may not otherwise be available to you as a person with a bad credit rating. You could use the equity you free up after you repay your
original mortgage lender to invest in stocks and savings that will give you a better yield than you are currently getting on the property.

Alternatively, you could pay off all outstanding debts you have so that you have no interest and debt payments to make each month – merely a mortgage repayment. Finally, you could even use the equity you get to invest in a long-term investment plan like your pension. In fact the options are so limitless that you should really consult with a financial expert who can best advise you on how you should put that money to the best use for you!

The cons of bad credit mortgage refinance

The number one downside to any mortgage refinancing, whether it be bad credit or otherwise, is the fact that mortgage lenders do not like to be repaid early. As such they usually incorporate some expensive penalty clauses to
try and make it not worth your while repaying them early. With this in mind, you will need to read your original mortgage agreement with your original lender very carefully to make sure you won't have any onerous default payments to make; or, you could try and arrange for the new lender to swallow these.

That said, if you make any arrangements with the new lender that they agree to pay these fees for you, you then need to make sure they do not put any restrictive clauses in your new refinance mortgage agreement that would prohibit you from refinancing your mortgage again at some time in the
future if the occasion warrants such.

Without a doubt, as a person with a bad credit history and bad credit rating, a bad credit mortgage refinance can open up avenues to you that would not otherwise be there. You do, however, need to give consideration as to whether or not you want to take this route. Not least because at the end of the day your house and family home is on the line!
About Author
Monique Thomas helps you find the resources and information
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Ride the wave of ‘Wellness’ to Financial Freedom!

Written by Dian Herdiana on 10:25 AM

Ever wished that you’d timed things a little better so that your income was on par with that of Bill Gates? Perhaps you ponder how life would have been different had you the ability to see the big picture that Henry Ford saw – the NEED for automobiles, even when there were obstacles such as no roads and no gas stations to overcome in order to achieve this dream.

Had you this same ability to “think big” life could be very different right now.

Unfortunately the majority of us missed the opportunity to earn ASTRONOMICAL income levels from these trillion dollar industries, which themselves spawned trillion dollar industries, because we were either unaware of the opportunity or we chose not to take a risk. A risk that could have catapulted us to a level of wealth unlike we could ever have imagined.

Perhaps it was hard to imagine that automobiles and personal computers would have generated such astounding sales when, at the time of their creation, they were in no way a necessity of every day life. However, there were people with the valuable gift of foresight who dared to dream and who today are living a life most of us can only experience in our heads.

Until now that is.

Currently, each and every one of us is positioned to make a fortune - to take advantage of the next market boom. A boom that could see us living a life free of the many worries we face today. Whether we choose to take this opportunity, or let it pass us by as others have, is entirely up to is.

If you have the desire and determination to create a future void of financial worries and time constraints, then this article could very well change the path of your future forever.

You’re probably wondering what the next opportunity is. How can you cash in this time around? Have you heard the term Wellness? Wellness is defined as "Products and services provided proactively to healthy people to make them feel even healthier, look better, to slow the effects of aging and to prevent the development of disease". Unlike the “Healthcare” industry (more appropriately, the “Sickness” industry) Wellness is about prevention rather than cure – it is proactive rather than reactive.

Renowned economist Paul Zane Pilzer has predicted that the Wellness industry is set to increase from $200 billion annually to $1 trillion dollars annually by 2010. In it’s short 20 year history the Wellness industry has generated annual sales that have reached half of those of the automobile industry already – a 500% growth - not bad for an industry that’s in it’s infancy and is virtually untapped. 20 years from now the growth will be phenomenal!

So why Wellness? Well, 78 million baby boomers, who have been dictating our economy for the last 20 years, are now aged between 37 and 55 and have more money and more spending power than ever before. They have been responsible for booms such as housing, utility vehicles and personal computers and their ultimate desire, as they head into the later years, is to slow down the aging process, to stay healthy, full of vitality and to look and feel every bit as young as their minds tell them they are.

How do they go about achieving these goals? Through focussing on wellness, whether it be through the services of practitioners such as naturopaths and homeopaths, exercise and fitness, the use of vitamins and minerals to accommodate for the lack of nutrition in our foods today or through other sources.

Baby boomers are not prepared to accept, as their parents have, that medication will be a necessary part of their future. Prevention of ailments and disease is a core focus for millions of people now, and into the future, and it’s only through attention to health and wellbeing and the welcoming of “Wellness” products and services into our lives that this can be achieved.

The opportunity to make a fortune from this industry is now available to each and every one of us. If you are seriously looking for an opportunity to take the ride of your life to financial freedom and security and to take back control of your future then the Wellness industry is the vehicle to take you there.

Whether you choose to enter the industry from a practitioner perspective, or through the manufacturing of wellness products, through retailing or through distribution you can be assured that any one of these means could make you a millionaire, if you just have the guts to go for it, to take a risk and to stick at it. Afterall, every person who has succeeded in business and in life has failed their way there. The difference between them and people that live a mediocre life is persistence. The ability to never EVER give up.

Don’t miss the boat on this one. If you truly want the life you have always dreamed of, the time is SO RIGHT at this point in time that you would be doing yourself a disservice to ignore the opportunity.

Jump in, take a risk, and get ready for the ride of your life!


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About the Author


Lynda Lock is a business mentor to others who wish to run their own internet-based wellness businesses from home. For more information go to:

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