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Bridge the Gap Between Need and Fund

Written by Dian Herdiana on 6:40 AM

In order to bridge the gap between the fulfillment of a personal need and the required fund, the UK financial market offers personal loans. These loans are in great demand, as one can avail them for any personal need. Hence, more and more lenders are devising favourable personal loan deals.

Since all type of people face the necessity of borrowing money in some or the other phase of life, personal loans are made available in both secured and unsecured form. While the homeowners are eligible for taking the secured one, others are provided with the unsecured one. Both types of loan have their respective merits and demerits.

A personal loans taken against the home of the borrower places the lender at least risks regarding money recovery. He has the solid assurance of cash return due to the attachment of the collateral. So, he reciprocates by facilitating the borrower with the following advantages:

Easy approval, even with bad credit record
Comparatively lower interest rates
Bigger loan amount
Extended repayment term
Easily affordable repayment premiums

If homeowners have a reason to rejoice for being awarded with some gainful benefits then tenants also do not have any reason to regret. Unsecured personal loan, meant for them, have some unique benefits like:

Risk free option of raising necessary funds
Relatively quicker processing
No property valuation fee
Simple documentation

Borrowing money to cater to a financial urgency is an age old tradition. And so is the consequent failure. Many people cannot repay a loan properly due to other emergencies. Negligence works in case of some other people. Whatever may be the case, it is not only the lender who is at the receiving end. The borrower also builds up bad credit record and cripples his personal finance. So, it is recommended to prepare proper plan to pay off personal loans and stick to it thereby to avoid failure.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done masters in Business Administration and is currently assisting ask4loan as a finance specialist. For more informations please visit our website

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Unsecured Loan- No Guarantee Required

Written by Dian Herdiana on 5:49 AM

Whenever finances fall short, borrowing is the first thought that occurs to us. But, there remain many apprehensions in the mind regarding the loan deals. Most borrowers are lured by the idea of unsecured loans and fear taking secured loans that require an underlying asset or collateral.

In case of unsecured debts, the creditor lends money on the basis of the credit profile of the borrower and doesn't demand the home as security. For this reason, unsecured loans carry more risk for the lenders that they compensate by charging a high rate of interest and less flexibility in terms of repayment options.

Cited below are some of the characteristic features of unsecured loans.

  • The lender does not attach any value to the loan i.e. no security is demanded

  • A credit check of the borrower is carried to know his repayment history and paying capacity

  • The amount generally ranges in between £500 to £ 25,000

  • The repayment period can stretch from one to ten years

  • These loans generally carry high rate of interest because of the absence of security

  • If the borrower owns a house, he may get an unsecured loan at cheap rate

  • In case of default by the borrower, he can be sued by the creditor in the court of law

  • The processing of unsecured loans is faster than secured loans

  • Elimination of legal property evaluation and less documentation makes the disbursal fast

    As stats reveal, most borrowers in Brits are in debts, and the year 2006 saw an alarming hike in the number of personal insolvencies. This clearly indicates the growing market of bad credit personal loans. Since most of the borrowers already have many debts against their homes, unsecured loans are their only saviours. The high street banks have declared their stringent policies in terms of unsecured loans, and they seldom grant any ad credit loan. So, private and online lenders are the ones who come handy to the borrowers. Though the interest charged on these loans is considerably high, borrowers avail them to get rid of their multiple debts on credit cards and other personal loans.

    Debt Consolidation Loans Make your Debts Easily Manageable

    Written by Dian Herdiana on 3:30 AM

    The hassle of unmanageable debts is not wanted by anybody. It hampers the mental peace of a person and blocks the financial self. So, it is necessary to take timely steps to get rid of unmanageable debts. But, there is no measure that can help you efface your debts overnight. Of course, if you suddenly get hold of huge cash to pay off your debts then it is different. Otherwise, you have to use the traditional method to make debt management easy and finally pay it off.

    One effective method of easy debt management is the use of debt consolidation loans. Under this method your multiple debts will be converted into a single loan. This will give you freedom from dealing with more than one lender. It will not be necessary for you to distribute your monthly income to various creditors. Instead, you have to make only one payment to a single lender.

    Moreover, the repayment term of your debts will be stretched over a longer duration of time. So, your bigger monthly instalments will be replaced by relatively smaller premiums. Thus, every month all your income will not be spent in making repayments. Rather, you will start saving some money in each month. If you search thoroughly then you may also get consolidation loans at lower interest rate. This will help you save good sum on the overall debt repayments.

    However, if you do not get debt consolidation loans at lower rate then you may end up paying a little extra cash. This is because you have to pay interest for longer time. This method of making debt management easy can be used by both homeowners as well as tenants. Tenants can take it only in unsecured form. But homeowners can avail it in both secured and unsecured form. Both forms of debt consolidation loans have their respective merits and demerits.

    Save Money by Refinancing Your Car Loan

    Written by Dian Herdiana on 8:27 AM

    If we define the term refinance in lay man terms, refinancing is nothing but a loan taken on low rate of interest to pay off the previous high interest rate loan or it can be also defined as the replacing or extending the existing tenure of loan with a new tenure of loan. Like wise, if we apply this definition on the refinance car loan, it will be seem as a new car loan taken with low rate of interest to set off the previous car loan taken on high rate of interest.

    Refinance car loan is nothing but shifting from the high rate of interest to low rate of interest. Let’s explain the situation when the need of refinancing car loan emerges. Imagine the person availed a car loan and after two months he finds that there is downfall in the financial market which has further reduced the rates. But he finds himself paying higher rate of interest as compared to the rate prevailing in the current financial market. In such condition he opts for availing refinance car loan in order to pay low interest as other are paying.

    Getting refinancing through refinance car loan enable the person to save large sum of money and thus he can use his saved money in order to satisfy his other personal needs.

    Refinance car loan makes the repayments affordable and saves the person from falling in the sea of debts. As paying higher rate of interest increases the burden of debts, which further create difficulty in making repayments.

    Refinancing car loan can be taken from the same lender or another lender that is, as per the convenience. The features of the refinance car loan are illustrated below:

    •Comparatively lower rate of interest
    •Low monthly instalment
    •Improves credit score

    While availing refinance car loan the borrower must negotiate with the lender and must appeal them to reduce the cost of the loan. And, if the borrower has good credit rating then his good credit score enable him to avail loan on more competitive prices.

    The process for applying refinance car loan is simplified through online. Researching and comparing various offers on the internet is much simpler than comparing and researching in the physical market. Today internet shows each aspect of the refinance car loan. Thus, it is absolutely right to say that it saves time, effort and money while applying loan through online.

    About The Author

    Xenia Stevens has been associated with AmericasCarLoans. She has completed her Masters in Finance from Cranfield School of Management. She provides useful information on Car loans. For further details in car loans, Refinance car loan, car loan financing, instant car loans, private car loans in US visit

    Revolutionary New Wealth Building Strategies Online

    Written by Dian Herdiana on 1:32 AM

    The internet is indeed a strange and wonderful place – especially if you are making a living online. The rules are constantly changing. This is both challenging and exciting. To the lazy marketer this spells trouble, but to the enthusiastic hard working marketer this spells opportunity. The fact that the wealth building strategies online is changing constantly it means that opportunities are consistently opening up – especially to newbies looking to establish themselves in the global marketplace.

    The early nineties saw an explosion in affiliate marketing and many people made a fortune promoting products online. From this era emerged a generation of so-called gurus that in turn made their money sharing their secrets to building wealth online. These formulas, although they worked very well are fast becoming obsolete and ineffective. To make it in this highly competitive online marketplace you have to stay on top of your game and tap into some of the new and highly effective wealth building strategies online.

    The sheer amount of newsletters, courses and special reports are just not having the same impact anymore. I don’t know about you, but I’ve been exposed to enough ‘secrets’ for one lifetime.

    The age of the online guru is over. There is a new trend that is emerging and it originated with a few authentic marketers who make real money promoting and selling real products – as opposed to the common ‘guru trend’ of selling people dreams and tactics that don’t really work for the ordinary guy without ‘guru status’.

    I call this new breed of affiliate marketers The Renegades. By definition a renegade is someone who abandons previous loyalties and accepted beliefs. These new Renegade Marketers are willing to ‘spill the beans’ and shatter some of the accepted beliefs about creating wealth online. They don’t hold on to ‘proper’ JV principles or keeping so-called secrets, but they instead have a genuine desire to help ordinary people create financial freedom online.

    With these new wealth building strategies online success is once again available to all – the playing field is once again leveling out and the strategies that some of the gurus guarded or sold for a fortune is now available through the work of some of these renegade marketers who make it practical and accessible for all to benefit from.

    Some of these new strategies are so simple, it almost seem ridiculous how easy it is to make money online. Ironically, this is one of the major challenge that startup affiliates face. They tend to think that making money online must be hard and tough and that you have to be extremely experienced or skilled to ‘make it’. Nothing could be further from the truth. Whereas it requires hard work, making money should be fun and easy and doing it online offers both these opportunities.

    There will always be a place for building lists and developing big websites, but this is by no means the future for the little guy wanting to quit his day job. With these new wealth building strategies a new field of possibilities are up for grabs and with the internet as a global marketplace expanding, it will only get better for all of us. The best part of these new strategies is that it’s not rooted in ‘quick-fix top-hat style tricks’, but that it is based on sound marketing principles and simply taps in on some of the much overlooked aspects and potential of creating wealth online. Some of these marketers are even taking these online strategies offline and are making an absolute fortune in a virtually untapped market.

    We are once again in a very interesting transition in internet marketing and building wealth online. The fact remains that there is more than enough opportunities to go around for everyone. Pay the price and success is yours. No one will hand it to you on a silver spoon, but you don’t have to kill yourself either. Leverage your efforts with specialized knowledge and get in as soon as possible.

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    Article by Sincere-Advice.Com. The Ultimate Wealth Package is one of the most trusted online wealth building packages and gives anybody the opportunity to create financial freedom from the comfort of their own homes.

    The Scoop on Saving Money

    Written by Dian Herdiana on 7:07 AM

    It seems to be a universal language stressing the importance of saving money. Without a doubt it's one of the things in life easier said than done. As children when we stumbled across a quarter, or even better a dollar, we viewed it as a prize. We had plans for that good fortune. For most of us it was burning a hole in our pockets until we spent it. A quick trip to the store could provide immediate happiness to our taste buds. But other kids may have had bigger plans for their unexpected piece of luck. Some of us knew if we put the money away in safe keeping we could add to it in the future. That way we could think bigger and buy something more lasting. It could have been a bike or game we wanted to save for. Or for those of us who were thoughtful at young ages, a gift for a loved one.

    These kind of traits, to save money, or spend it freely, would have been instilled in us by our guardians. Today parents can start applying the principles of saving money by helping their children open up bank accounts. The child learns quickly the value in setting money aside when they are able to spend it on something special. Allowances for kids are a beneficial way of helping expose them to a work ethic. Rewarding them for keeping a tidy bedroom, or putting their laundry in the hamper (age appropriate) are just examples. The child will not just feel they are getting a handout, but that they earned their allowance.
    Once we begin a new job we are expected by our employer to fill out paperwork. Large companies these days setup automatic payroll deposits for their employees, unlike smaller business that hand a check out. Either method still brings about the same end result. The dollars earned are at the discretion of the worker to do with the money as they see fit. So many of us live pay check to pay check. It soon becomes a way of life. Maybe you are struggling to get out of debt, or saving towards an education. Both are worthy causes. We all need to start somewhere, just like the child that has his piggy bank hidden under the bed.

    Setting a budget for the monthly flow of bills will quickly show you where your extra cash flow is, and where it's being spent. Clearly there are commitments that take precedence over other monthly requirements. When you review your monthly responsibilities you are offered a choice. There will be sacrifices that need to be made in order to start a savings plan. Things like packing your own lunch, quiting smoking, cutting the cable package, or discovering free activities could save you a bundle. Set aside the extra money you normally would spend on these items and put it away. Commit yourself to a monthly figure that is workable to put into a savings account. Soon you'll be well on your way to successfully saving money.

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    Sarah Jane is an author of various subjects. From topics ranging from finance to travel, she offers good information and advice. For example she offers advice on everyday scenarios like paying bills through internet banking at or

    Mortgages - Fair Shares

    Written by Dian Herdiana on 6:55 AM

    There’s a lot of interest being shown in a totally new shared-equity mortgage, which will hopefully help a wide range of first time buyers to get into the property market.

    Shared equity is not new and schemes have been around for some years which mainly involve housing associations but these were designed for the needs of low income tenants and council tenants.

    A new government scheme called Homebuy which will allow property buyers to raise a mortgage of 75% and the balance of 25% will belong to lenders, the government or social landlords, such as housing associations. An innovative part of the scheme will involve the government owning 12.5% of the property, and the lender owning the other 12.5%. The purchaser will pay rent on the share owned by the third party. The Halifax, Yorkshire and Nationwide building societies are committed to the scheme but it is expected that others will get involved.

    This help will still not reach everyone. Homebuy is designed to help people such as council tenants, and key workers, such as teachers and nurses wishing to buy their first home.

    For a scheme to help everyone, it looks as though Advantage, owned by the US investment bank, Morgan Stanley, has come up with the answer for first-time buyers with its new Flexishare shared-equity product.

    At the outset, Flexishare will be two year fixed rate mortgage. There will be a requirement for a 5% deposit and the loan will be split between a normal, conventional mortgage and something called a residential ownership loan, which can be between 15% and 35%. The interest rate on the loan is designed to be low, 3% has been suggested, but no decision on that has been made yet.

    Loan repayments will be interest only and because that rate is planned to be lower than that of the mortgage, the total outgoing will be less than if the total loan was on a mortgage. I should look tempting to buyers who can’t meet the expense of a standard mortgage. As long as borrowers pass Advantages credit score, they should be eligible for the scheme.

    Advantage will share in any rise or fall in the value of the property, as part owner.
    This seems to be the answer to their prayers, for those who are unable to get a mortgage in any other way. The mortgage industry has shown a lot of interest in the scheme and if all goes well, no doubt other lenders will follow suit.

    Schemes like this are coming about because house prices have risen appreciably in recent years. In some areas property prices have doubled in six years. A slight worry is that if schemes like Advantage’s become widely available, price increases could be pushed even higher.

    The general feeling amongst the experts seems to be that house price growth will slow down in the near future and hopefully remain low for some time. This would certainly offer some hope to would-be first-time buyers caught in a spiral of ever-rising prices. The best plans for saving that necessary deposit easily gets over-taken by rising house prices.

    For up-to-date advice and information on these house-share solutions the best plan of action would be to contact a broker, who will know if the product is right for you. The internet is a good place to look and brokers are able to offer special internet rates for some products. They’ll certainly be able to help will be pleased to hear from you.

    Great mortgage articles from the Mortgage Explorer

    student financial maze

    Written by Dian Herdiana on 8:37 AM

    You just finished high school and realize you have two months to work and save up for your very expensive post secondary education. Your parents are willing to help you out a bit, you have a very impressive $4.32 stashed in your savings account, and you have a rewarding job at Wal-Mart 3 days a week. You should be set right? Wrong.

    College and university is one of the biggest financial commitments you will make during your life. . Most students get a loan of some sort and almost all have credit cards. That’s why it’s important to know you have options

    Government Student Loans
    In many parts of the world there are government student loan programs which almost anyone is eligible for. The loan amount is usually based on a number different factors including, how much financial support you are receiving from parents, and the total cost of tuition and other fees. The major benefit to a government issued student loan is that most require repayment only after you have completed your studies. However, like any loan, a heavy interest rate is the downside.

    Student loan through a bank
    Most major financial institutions offer student loans or student line of credit. There are several benefits to this form of loan. Most often the interest rates are reasonable, and minimal payment is usually expected. Most banks even further the convenience by attaching the loan to an existing account, or by giving you a credit card. Remember, banks “bank” on the fact that you will spend that money.

    Student credit cards
    Many students rely on their credit card(s) to get them through school. On a short term basis, credit cards are a great source of cash which is easily accessible However unlike a loan, you have to start paying back immediately (monthly), often with outrageous interest rates. Most times, students rely too much on credit cards and find themselves having money trouble before the school year is even finished. And once a credit card is “maxed” and you are unable to pay the minimal payment, additional interest rates and “service” fees are attached.

    College educations are not cheap. In fact, tuition fees go up by staggering numbers every year. The truth of the matter is, unless you have parents who are willing to flip the bill or some other support, you are likely going to need a loan or some sort of financial assistance. The best advice is to educate yourself. Know what is involved in a loan, know the interest rates, and know your responsibility of payment. A four year education is an awesome financial burden, so it’s important to know your options. helps students from before to the end of their studies with finance, loans, travel, jobs, business and much, much more - all for free, see more at

    Avoiding Debt Consolidation Scams

    Written by Dian Herdiana on 4:29 AM

    Debt consolidation loan is one of the most common and convenient methods of getting rid of multiple debts. Debts often leave us ruined and upset our monthly expenditure routine. The functioning of debt consolidation loan is simple. It can be defined as one big loan that pays off your small existing debts.

    This becomes quite unweildy. Debt consolidation combines all of them into one source. The amount you have to pay is reduced considerably since you cut out the heavy late fees. Moreover, you will not be bothered by phone calls and letters from creditors. You must act fast or else you will keep worrying about your ever-increasing debt and the obvious consequences.

    If you are looking for debt consolidation loan, you can easily get it from any of the several debt consolidation companies. If you have any doubts or queries, there is always a professional debt consolidator to help you get the right answers. However, do not be impulsive while signing a debt consolidation loan, as there are many companies who look for such people and make fool of them. There have been many debt consolidation scams in the recent past, so make sure that you do not fall into the trap. To ensure that you do not become a victim, carefully analyze the debt consolidation company before you take any decision.

    You can easily search for a debt consolidation company on the Internet. Many websites also provide tips on debt consolidation and its advantages and disadvantages. There are a plethora of articles on the Internet and you can easily access them. You can gain invaluable knowledge by reading the articles and be a good judge while applying for loan. Besides, you can always consult your friends, relatives or colleagues who have faced a similar situation before. You can also meet such people on the Internet. There are a lot of fake organisations out there so make sure that the finance company you apply to is legitimate.

    This can be done by contacting the Better Business Bureau to check if any sort of complaint has ever been lodged against the company. Some companies have official websites, but that does not guarantee that they will be legitimate and fair. Creating a website is not a challenge, what is difficult is to back the claims that are made on the website with action. Do not send your credit card number or bank account number to any company before knowing its whereabouts. First contact the company and know the modus operandi of the company. With a thorough research, you will only be helping yourself further.

    Schaldening Hilfarde is the proprieter of Debt Consolidation, Inc. which is a premier resource for debt consolidation information. For questions or comments go to:

    Stop Negativities

    Written by Dian Herdiana on 9:36 PM

    Being financially independent is a good notion. But how about being financially wealthy? While this remains as a dream for those who are not determined or strong enough to pursue it, there are still some people who will move heaven and earth to achieve their dreams.

    Many times we have seen people who are really determined to make their own fortunes. These people have a different perception in finances and know what they want and are going for it. But sheer determination is not enough, while some have succeeded by their willingness to explore new grounds and taking risks, there are those who simply are unable to succeed because they fell short. Why? Because a lot of people are pulling them down.

    All of us have them, people who are constantly showering us with negativity. Those who are not ambitious and are just willing to accept what they have. They hate to see people succeed and are trying to pull us down with them. When we get excited over an investment opportunity or an idea we have, they shut it down saying that its no good, or it won’t work or just plainly that it cannot be possibly be done.

    These “dead weights” that may be hampering our climb on the ladder of success are the people closest to us. The people we talk to when we need encouragement. Sometimes, these people are our family, our friends, co-employees, bosses and many others. Some of these people don’t want to see us succeed because they don’t want to be compelled to succeed themselves. They are already contented with what they have and they don’t want to be compared to you when you do eventually become a rich man and a rich dad to your children.

    These “naysayers” or “prophets of doom” are one of the primary causes why many businessmen and entrepreneurs have failed. This is because they have cast some doubts into their heads and have had their confidence in their ideas and investments falter. Listening to them, and most of us do because we trust them, can hold us back and keep us from becoming rich.

    We have to keep in mind one simple fact. Only five percent of the world’s total population has control of over ninety five percent of the world’s total wealth. Those five percent shrugged away all the hands that keeps pulling them down and fought their way to the top, now heading some of the biggest companies in the world. They have a positive outlook in their success and knows what they want and are determined to get what they want.

    That is why we have to stop thinking about those people that are providing the negativities. Its not that you won’t ever seek opinion or advices again, it’s all about selecting wisely the criticisms, opinions and advices to follow. Admittedly, not one person possesses all the right answers to becoming truly rich. Especially with new investment opportunities coming out and different markets cropping up. This is a reason why we should never be afraid to take the plunge and make some mistakes.

    What you need is to have the right attitude in pursuing your goals. Remember that tough times will pass and go, tough people last a lifetime.

    Being successful and rich requires a person to have the proper work ethic. You must set first your goals and formulate a plan to achieve it. Then, be determined and work hard to achieve your goal, just make sure to make your goals realistic.

    Remember though to be patient. Wealth and riches are not built overnight. Keep yourself focused on your goals and follow your plans. Be flexible to possible changes in your plans as obstacles may come. Even though you may face some problems and commit some mistakes along the way, do not give up. You can use those mistakes to your advantage.

    Never be afraid to take the plunge today. There is no time better. Procrastinating would only delay your destiny of being a rich person. Its time to grit our teeth, meet the challenge head on and soon shower ourselves with the rewards of our courage, determination and persistence.

    To your success,


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    The Benefits of Consolidating Credit Cards

    Written by Dian Herdiana on 6:30 AM

    Consolidating credit cards refers to the option of combining various credit card debts into one credit card instrument. Credit card consolidation, also commonly known as balance transfer, offers credit card consumers an expedient means of managing and controlling their finances.

    Credit card consolidation, in the strictest sense, entails paying off the balances incurred on other credit cards. A new credit card is issued or an existing account is used and the credit card issuer makes full payments to other credit card companies. The sum total of the balances paid to other credit card companies becomes the consolidated principal balance on the new card. There may be transaction fees involved with the transfer and these fees are also added to the principal.

    Consolidating Credit Cards: The Need

    One great predicament most credit card holders have is acquiring more credit cards than necessary. Having more than one credit card expands a person’s spending power and exacerbates the difficulty of controlling and monitoring expenditures.

    Using multiple credit cards lead to confusion over different payment due dates and minimum dues. More often than not, having several cards also results in cash flow difficulties. Consequently, consumers with multiple credit cards usually find themselves past due in one or two credit cards where they are subsequently levied higher interest rates. Consolidating credit cards offers a viable solution to this problem.

    Consolidating credit cards, however, is more effective as a preventive measure. If you find yourself having difficulty juggling your accounts and remembering which card is due when, it is time to consolidate all your credit cards into one. This will prevent the possibility of incurring late fees and higher interest rate charges, both of which could ultimately ruin your credit.

    Consolidating Credit Cards: From a Business Perspective

    Credit card companies offer consumers credit card consolidation to expand their customer base. From a credit card company’s perspective, when it is able to convince people to transfer their debts, the credit card company benefits from long-term interest payments. Moreover, when more people use their credit cards to make purchases, they can negotiate better deals with merchants whose merchant fees are another major source of revenues.

    Consolidating Credit Cards: Consumer Options

    Credit card companies induce consumers into consolidating credit cards by offering a special introductory annual percentage rate of 0% for a specific number of months (say 12 months). Some credit card companies offer a low and fixed annual percentage rate like 2.99% which would apply on the balances transferred from other credit cards until such balances are completely paid off. Some credit card companies do not even charge balance transfer fees.

    Different credit card companies offer different credit card consolidation plans. Make sure to explore all of your options so you can get the best offer available for consolidating credit cards.

    Jinky Bagagñan is a team member of Online Creative Solutions which is an online company that provides writing, rewriting, editing and proofreading services to webmasters and other publishers. Visit for details.

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    Get A Home Loan Or Refinance Without Liquidating Your Investment Assets

    Written by Dian Herdiana on 5:58 AM

    When it comes to financing a home, borrowers often liquidate personal investments to come up with a down payment. The problem with this strategy is twofold. First, liquidating marketable securities can carry with it the penalty of paying capital gains taxes on any appreciation of those securities, and second, liquidated securities are no longer working for the investor/borrower. While liquidating assets from an investment portfolio is an option in coming up with a down payment on a residential real estate acquisition, it is often not necessarily wise, nor is it always necessary. Today, there are mortgage lenders who offer a mortgage financing product known as a pledged-asset loan, which may be ideal for you.

    Basically, a pledged-asset loan is a loan product in which a mortgage lender allows a homeowner to pledge eligible securities instead of making a cash down payment. In short, after qualifying for the loan, homeowners can finance up to 100 percent of the purchase price of their homes or even acquire a cash-out refinance up to 100 percent of the appraised value of their properties without liquidating their investment assets. There are four main reasons that many homeowners have found pledged-asset loans to be more attractive than making down payments. They include the following.

    1. Avoiding the capital gains tax that would come from selling marketable securities

    As anyone with an investment portfolio knows, paying a capital gains tax even at the long-term rate of 15 percent can be costly and painful. And, of course, the tax liability can be significantly greater in the case of short-term gains in an investment portfolio. For borrowers seeking to finance a home without paying Uncle Sam any more than is necessary, the pledged-asset loan can be a particularly wise financing choice.

    2. An investment portfolio that continues to appreciate and provide income

    There’s a popular tale that Einstein was once asked what the most powerful force in the universe was, and his reply, which probably came as no shock to financial planners, was compounding interest. Like Einstein, savvy investors know that there is an opportunity cost to liquidating assets too early. Funds withdrawn from a securities account are, by definition, no longer at play in the market. In a bull market, these opportunity costs can be huge. A pledged-asset loan is often the most sensible choice for borrowers who’d like to finance a home while keeping their investment accounts growing.

    3. No requirement for private mortgage insurance

    Private mortgage insurance (PMI) is required on mortgage loans where the loan-to-value (loan amount divided by the property’s value) exceeds 80 percent. PMI is expensive, but with a pledged-asset loan, it’s not needed. Borrowers can pledge securities to reduce their effective loan-to-value to a percentage below 80 percent and eliminate the need for PMI.

    4. Higher deductible interest payments at tax time

    It’s hard to believe, but mortgage interest is one of the last tax deductions available to the average American. Up to a point, the more interest a homeowner pays on his mortgage, the greater the annual interest deduction he can make come tax time. By using the pledged-asset loan product, homeowners maximize their interest costs and thereby get the greatest tax benefit. How pledged-asset loans work

    With a pledged-asset loan, homeowners can typically pledge their marketable stocks, bonds, mutual funds, money market accounts and/or certificates of deposit (CDs). However, retirement accounts are not eligible.

    Once the borrower and lender agree on the securities to be pledged, the borrower puts his assets into a margin account with a brokerage firm. Some lenders also allow homeowners to trade inside their pledged accounts as long as the borrower maintains the minimum balance required. The value of this account must be equal to the required down payment, plus a margin typically 130-150 percent of the base pledge amount to protect against changes in the market value of the pledged securities. However, the margin may be increased or decreased based on the type of assets a borrower pledges. For example, a lender may not require a margin at all if a borrower pledges cash or cash equivalents, like CDs.

    Typically, pledged assets must be securities issued by large, publicly traded companies, have a trading price of at least $5 per share and cannot be shares owned in a retirement account. Finally, the pledge account must be maintained at or above a certain level. If an account falls below the minimum, the lender will call upon the borrower to make up the difference.

    Pledged-asset loans by the numbers

    A pledged-asset loan can be an excellent mortgage product for the homeowner who expects that his investments and tax savings will be greater than the interest to be paid on the amount of the foregone down payment. Simply put, if a homeowner can borrow mortgage funds at 5.5 percent and keep his investment portfolio intact, earning more than 5.5 percent in that portfolio, then he will have benefited from a positive arbitrage situation.

    For borrowers considering a pledged-asset loan, there’s a simple formula to determine if it makes sense for them. Using annualized interest rates, borrowers should take the expected percentage return on their pledged assets that will remain invested (instead of being liquidated to pay for a down payment on a home) and subtract the interest that will be paid on the amount of the loan that represents the foregone down payment. If the result is positive, then the homeowner should explore a pledged-asset loan as a financing option. But pledged-asset loans shouldn’t be considered as a vehicle for just financing ones personal home. For many fans of pledged-asset loan products, these mortgages have been used as a means to help their adult children get into a home or even assisting their own elderly parents in buying a unit in a retirement community. By simply placing their marketable securities into a lender-approved margin account, many baby boomers and people caught in the so-called sandwich generation (adults with elderly parents and young children) can provide for their loved ones without liquidating their assets. Best of all, its not necessary for these borrowers to cosign the loan with the persons they are assisting; they only need to help provide the assets that replace the down payments. And remember that some lenders allow the owner of the pledged account to trade inside the account, as long as he maintains the minimum required balance in that account.

    Not surprisingly, pledged-asset loans are also popular among homeowners looking for innovative and financially savvy ways to finance a second home or investment property. While these borrowers may not enjoy some of the same tax benefits from a second home as they would from a primary residence, the pledged-asset loan often plays a significant role in acquiring additional investments without having to liquidate assets.

    In summary, the pledged-asset loan is a solid financial planning tool that can benefit several different types of sophisticated borrower. It can be a great tool for homebuyers and their financial planners who are seeking the most advantageous times to liquidate assets in order to reduce mortgage debt. It can also offer borrowers the opportunity to postpone liquidating assets until the time that such action fits their overall financial goals. However, pledged-asset loans should not be used for the purpose of over-leveraging the homebuyer. They are merely loan products that will allow homeowners to maximize the benefits of their investment portfolios and be able to more appropriately plan their overall financial strategies.

    Darren Meade is a National and Local Real Estate Expert. He can be reached for consultations at 949 499 1785. He is the CEO & President of Victory Mortgage Lenders.

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    A Home-Based Travel Business Can Build Financial Freedom

    Written by Dian Herdiana on 5:09 AM

    By Chris Robertson

    For many people, starting their own home-based business is the key to financial and personal freedom. The opportunities are endless, just depending on your own interests. You can be responsible for your own success and enjoy the fruits of your labor.

    One of the most appealing factors in a home-based business is the freedom to work when you want. You can set your own schedule and work as often or as little as you would like. There are no bosses or other employees to worry about. It is up to you to set the limits and goals for your business. If you want to work full- or part-time, the decision is yours.

    Start a Home-Based Travel Business

    A very successful field for many people is a home-based travel business. Being a home-based travel agent means making available travel products produced by someone else. You can do it two ways. You can be a referral agent, directing people to a travel agency. Then you would receive part of the commission on these sales. You can also book your own vacations and travel. You will receive a commission on that as well.

    The second way to have a travel business is to be a booking and selling agent. You would deal directly with the clients to help them find the kind of traveling experience they are looking for. Then you would research the options for them. You would deal with the travel supplier, looking for the best options. Then you would present the options to them and let them choose what they want. After they have decided, you would make all the arrangements for them. In exchange for all this, you would receive a higher commission than the referral agent.

    Get Help Online

    Becoming a home-based travel business is not complicated. There are many online sites that will help you get started. You don't need a lot of money to start out and you can get plenty of information and support. By checking these sites, you will learn how to get started and have many of your questions answered. They can help you get started in an orderly manner and have a professional home-based travel business ready to go.

    There are numerous places online to find discount travel packages, coastal vacations, and many other travel ideas. You can choose whom you will work with and enjoy the benefits of helping others. You will find the business opportunity is only limited by your time and motivation.

    Be Successful In Your Home-based Travel Business

    Even if you do not want to have a fulltime home-based travel business, you could earn enough to give yourself free trips and share discount travel with your friends. You can earn enough for a decent second income even if your time is limited.

    Whether you want a home-based business as a full- or part-time job you will find that some great opportunities are available. By starting your own home-based travel business, you can build your financial freedom from a dream to a reality.

    Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about home-based travel business.

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