Monday, July 30, 2012

Consider a Home Exchange for a Money Saving Vacation

Poniente Beach's sight in Benidorm, Alicante (...
Poniente Beach's sight in Benidorm, Alicante (Spain) (Photo credit: Wikipedia)

It's time again for summer vacations with the family. But with people having a smaller budget for vacations a way to save money is needed. One of the major costs of a vacation is your accommodations. If there was a way to save money on that expense, you could make the trip fit into your budget. A way to save some money is to use your home and exchange it for a home in a destination you would like to travel to.

A home exchange often called “house-swapping” is a great vacation idea that’s been around for a long time. With everyone feeling the economic squeeze, some exchanges are more popular than ever before. With home swapping you can afford to take great trips to Aspen's mountains, Mexico's beach's, London's countryside, and Spain's Benidorm holidays

How it works. 


The idea of a home exchange is that 2 families agree to live in each other’s home (usually at the same time) at no cost. People find one another from home exchange website that give detailed lists of homes available. Exchanges take place within the United States or internationally, and the length of stay is whatever the parties agree upon. Exchangers typically do not meet in person but get acquainted via phone calls and emails before the exchange happens. Details, including pets, the use of a car, and cleaning are all agreed upon ahead of time, usually in a written contract provided by the website.

Is my home a good exchange?


Home exchangers are looking for location, location, location. They want to explore attractions in your area, attend an event, or visit family. A beachfront house in California is highly desirable, as is a condo in an exciting city—and even a home in the suburbs will appeal to the right travelers. Because swappers are primarily looking for a convenient jumping-off point for their adventures, your home’s age, floor plan, and furnishings don’t matter too much, as long as it’s clean, comfortable, and accommodating.

What"s a perfect swap home?


If it’s a rustic cottage on a secluded fishing lake or a condo at a popular ski area, a second home is ideal for exchanges. Logistically, you don’t have to vacate your primary residence, and you have more flexibility as to when the swap can happen.  For this reason, many retirees—who often own second homes and enjoy freer schedules—find home exchanges especially appealing.

How do I list my Home?


Start by exploring a few websites where you can view a lot of information for free. Home exchange websites typically charge an annual membership fee of $50 to $100 to list your home. If you decide to join a service, you’ll provide several photos and a detailed description of your home. You’ll also post your desired destinations and travel dates, and you’ll be able to peruse the homes that meet your criteria. It’s common to trade information with several homeowners before finding just the right match, and the process may take several months.

Is my home attractive or good enough for a home swap?


A clean, clutter-free home is universally appealing, and comfortable mattresses and attractive bedding are a must. Your kitchen should be well organized, and Internet access is a big plus. Your guests know they’re staying in someone’s home, so don’t worry about scuffed baseboards and well-worn furniture.  Likewise, don’t expect five-star accommodations when you step into your host’s home.

The tipping point for a home swapper is can you take the thought of strangers sleeping in your bed and using your home while you are far away. Do you fear coming back to seeing your home trashed? This sort of thing rarely happens. But if you are worried, you are not a good candidate for home swapping. But if you want to save some money and you have a sense of adventure why not give it a try.



Sunday, July 29, 2012

When Student Loans are in Default - There are Options



Student loan default is a growing problem in the U.S. today. As much as a quarter of all student loan borrowers are one to two months behind on their monthly payment according to the Consumer Financial Protection Bureau. 

Add to that millions of federal student loan borrowers have already defaulted on their loans.

A lack of jobs is one of the reasons for this happening. The unemployment rate for college students that have recently graduated is more than twice that of the regular workforce. 

Because of this, one-third of college students under age 25 have jobs that do not use their recently acquired degree.

Over the past decade, student debt has grown to an average of over $22,000 for graduates of public colleges and universities and over $28,000 for private school grads. 

That’s a 20% increase. A growing number of borrowers – greater than one in eight – have debts of $50,000 or more. For too many, this grim economic reality makes making each loan payment in-full and on-time a monthly struggle.

Student Loan Debt Collection


These college students, who are in default, do not realize there can be thousands of dollars of fees and penalties they are liable to pay. 

Their credit will be damaged for many years to come and it will keep them from acquiring new debt like consumer loans, car loans, and mortgages. They have no choice but to refinance student loan programs and take control of their student loans.

The worse part they do not realize is that even through bankruptcy you can not discharge a student loan. The debt you have acquired will be with you until you pay it off.

The only good point to being in default is you cannot qualify for income-based repayment, an alternative payment plan can have a monthly payment as low as zero for extremely low income borrowers.

If you’ve fallen behind on your loans, check out the new web tool, available on ConsumerFinance.gov and at the new StudentAid.gov, launched by the U.S. Department of Education.



Saturday, July 28, 2012

Are Timeshares and Vacation Clubs A Good Deal?

timeshare ownership
timeshare ownership (Photo credit: GGtimeshares)

Dreams of warm beaches and bluer than blue ocean beaches pervade the mind every summer. Making plans for that ultimate vacation destination fills your thoughts and just has to be satisfied. You finally take that great trip and just fall in love with the place.

Maybe you think owning a bit of paradise would be the right thing to do. Your thinking of buying a timeshare.

Timeshares and vacation clubs allow you the opportunity to become a part-owner of a resort. The ability to return yearly comes with a certain sense of security; your next vacation is always just around the corner. Most timeshares allow you to trade your allotted time for points to use at other vacation destinations. You can enjoy luxury ski chalet holidays, travel to the Caribbean, or enjoy any city destination that is on your plans list.

What is a Timeshare?
Timeshare ownership has you pay an upfront fee plus a yearly maintenance fee. Depending on the timeshare arrangement, owners either own the rights to a specific, fixed week or a floating arrangement, where you can visit for a week within a period of time each year.

What is a Vacation Club?
Vacation clubs are a newer variation on the timeshare model. Instead of purchasing the rights to a specific unit, as with a timeshare, vacation club “members” pay an upfront sum to purchase a number of “points” which can be redeemed for different vacations each year. Yearly maintenance fees still apply.  

Is This a Money Saving Way to Vacation?
Both plans have different restrictions. Timeshares give you a specific week in a specific place from now on. Vacation Clubs have more flexibility with your choice of destinations but you have to deal with a fixed number of points. 

Both of these plans have large upfront costs with an expensive yearly maintenance fee. For example if you take vacation where you pay $200/ night for a week hotel stay over ten years you have shelled out $14,000. A timeshare at the same property might cost $8,000 upfront, with annual maintenance fees of $550. After ten years, you’d have paid $13,500—only $500 less than it would have cost you to pay for normal vacations. Over 30 years, however, the timeshare becomes a much better deal: At the end of that period, you’d have paid only $24,500 for your yearly vacations at a timeshare, as compared to $42,000 if staying at the hotel.

Are They a Good Investment?
For being real estate you would think there is an appreciation value. The value of your timeshare generally decreases sharply after purchasing.  The reason being the number of timeshares is always increasing. New timeshares have an attraction over an older one which people do not prefer. Add to that, it is really difficult to sell your timeshare if the need exists. If you did resell it, you could receive only half of what you paid for it. 

What to Do?
If you like a particular timeshare destination, rent do not buy. Many timeshare owners can't sell or go to their timeshare so they will offer you a great deal for renting them. 

A great place to look for timeshare rentals is Ebay. I personally had a great experience renting a timeshare in Orlando and everything went perfect. Because you’ll be dealing with an individual timeshare or vacation club owner rather than a hotel, be extra cautious to ensure that the deal is legitimate. Call up the hotel ahead of time to verify that the owner in question does, in fact, own a timeshare at the property. Additionally, ask the timeshare owner for references from previous satisfied renters.



Friday, July 27, 2012

Advantages and Disadvantages of Auto Title Loans

Loans
Loans (Photo credit: zingbot)
Auto or car title loans have now become a popular way to get a car quickly. They are being widely used, as they bring some real benefits. However, like any cash loan, car title loans imply certain risks. Here are the main benefits and drawbacks of car title loans. 

Benefits: 


1. The main benefit of auto title loans is that they allow borrowers to quickly get the money for purchasing a car. It usually takes a day or two for these loans to be processed. This is because auto title loans comprise a simple process involving a lender examining your car in order to make sure it is worth the amount you’d want to borrow. 

2. Anyone who has a car can obtain an auto title loan. That is because there are no credit score verifications involved in the process. As a rule, a lender will give you a secured loan, meaning that this loan is based on some collateral that you will have to provide. Unsecured car loans involve no collaterals or guarantors. However, in this case the given money will have to be paid back with interests. As practice shows, auto title loans have rather high approval rates, as there is literally no risk for the lenders. This type of loans is also ideal in case you have a bad credit rating. Banks will most likely reject your application if you need money to cover your current debts on payday loans, for instance, or bills. But the car title loan will bring you what you need if you have a car. 

3. While you have your loan out, you will be able to keep your car and drive it. You will have to give the pair of keys along with your title to the lender, but you will still be able to drive. Your lifestyle will remain the same, and you will get your money. 

Drawbacks: 


1. Auto title loans are delivered for a short period of time, usually around a month. The interest rates are low at the beginning, but they will rise to higher levels for every additional month that you need extended. So, if you are borrowing a considerable amount, you may find it difficult to repay in the short period. In this case you may end up paying more than you have expected. 

2. Like any secured loan, car loan implies the risk of losing your pledged assets. The lender will have the right to take your vehicle in case you fail to pay the loan back. The lending company will naturally sell it to make up for the lost money. However, if the sale price is less than the amount you owe, you will be in charge of paying the difference. In addition, if your lender sells the car and makes more than your debt, he will keep that as well. 

3. The attractiveness associated with quick and easy cash can make you take ill-considered decisions. There are always some risks waiting for the borrower which may lead to losing the car. So, make sure you know all the risks involved in your auto loan before your pledge your means of transportation as collateral. 

Finally, auto loans are good ways of getting a vehicle fast, provided that you are able to pay them back in due time. So, it is highly recommended to carefully weigh all the pros and cons before applying to these services.



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