How to Deal With Mortgage and Credit Card Management

As we are all aiming to ride out the financial wave to safety, you may be currently facing issues when it comes to repaying on a credit card or taking out a mortgage. Thanks to the economic recession we have all be tightening our fiscal belts whilst taking out favourable terms with a number of different credit card firms or banks. Whether you are seeking alternatives or looking to control your personal finance, here are a few options on how to cope with managing your credit. 

Do your research

If you wish to keep a hold of your credit cards then it is essential that you scan a wide variety of companies on the net. This is in order to obtain the best interest rate or APR so your repayments or as low as possible. Different firms will charge different types of rates so it is essential you find the best deal where you can reduce interest rates and more. This includes;

• Decreasing monthly payments.
• Eradicating any charges.
• Asking for a lower interest rate.

Settle debt immediately

Whether you have a credit card or are renewing an existing mortgage loan, it is crucial that you pay off the monthly debts in good time. This is because you may run into trouble in the long run when it comes to missed payments. Like a credit card, a mortgage payment is taken monthly so you should ensure;

• Settlement of any outstanding monthly payments as soon as possible in one lump sum.
• Ask to discuss how to pay less over the course of a month.
• You have enough money to pay or your credit rating may be affected. 

Prioritise

Do you really need to take out a credit card or struggle with mortgages? If you really do not have enough funds to cover these monthly payments then you should draw up a schedule. Credit card repayment can be left to a certain extent while a mortgage needs to be paid off in full. Alternatively it may result in the loss of your home. Yet, if you speak to an independent financial advisor, they will be able to put you in the right direction as far as the best home loan rates are concerned. This will provide you with the opportunity to repay within your budget so that you are not short at the end of the month.

Little and often

If you choose to pay back the minimum amount each month, it will allow you to be in control of your personal finances. In this way, it may take you longer to pay the full amount back on your mortgage or credit card but paying in bite size chunks will ensure you don’t run into debt. By adopting a less is more attitude you will have the chance to;

• Be in control.
• Repay the lowest amount when necessary.
• Not rack up any additional loans.

Seek help

If you have been unable to agree on reduce interest rate payments as well as reduced balance, then there are other solutions available. You can always seek approval from independent advisors or ask friends or family to cover you until you can repay them back. This won’t be as much of a burden especially as it will only be a temporary loan to tide you over until your next pay cheque.

If you are disciplined and keep a close record of all your outgoing and incomings then you will have the ability to manage your finances. By following just a few of these steps, you will be well on the way to financial freedom and taking control of your personal finances.

About the Author:
Westpac is one of the banks in New Zealand that offers the best and reasonable home loan rates. They also have credit card deals and more.

How to Get a Loan with a Poor Credit Rating

Whether it was reckless spending that soon taught us a lesson, mismanagement of our repayments or a genuine inability to pay back what we had borrowed, at some point in our lives many of us will find ourselves with a poor credit rating. 

This however does not necessarily mean we can simply afford to forego borrowing any more money, nor that we would not be able to better manage a loan now and though getting a lender to agree to a deal might not be so easy, there are a number of things you can do to increase your likelihood of getting hold of the cash you need.

Expect rejections

Applying to one bank and then giving up upon rejection will get you nowhere. With a poor credit rating, you are immediately a candidate for refusal and should enter into talks expecting the worst while hoping for the best. 

Rejection from one institution does not mean that nowhere will accept your application; time and patience will be required.

Negotiate interest rates

While you still want to get the best interest rate you can possibly get a lender to agree to, you have to understand that the compromise for being accepted with a bad credit history is paying higher interest rates. 

Seeing you as a risky investment means that banks will want a bigger return on their money and as much as it might sting, you have to be willing to accept this if you want the loan application to be approved. 

Be wary of Payday loans

While you are more likely to be accepted for a payday loan, you are also more likely to find yourself in deeper financial trouble if you accept one. 

These short-term loans for small amounts of money are designed to tide you over between pay cheques but they come with huge interest rates and massive penalties should you not pay it off on time. 

So many consumers have found themselves crippled by such loans that there are even investigations underway as to how unfair they may truly be.

Keep it to a minimum

The more you ask for, the more likely a lender is to decline you if you have a bad credit history. Carefully working out the minimum amount you need to borrow and being sure to decline any extras such as Payment Protection Insurance that would boost payments and the investment will seem less risky to the lender, encouraging them to say yes.

Improve your rating

Perhaps the best way to increase your chance of a successful loan application is to actually improve your rating, repair your credit score fast thus making you seem like a safer investment. 

Paying off all other outstanding debts by being punctual and organised with repayments will soon help towards this. Another good tip is to lock away your credit card and try not to use it; as this way you will never exceed your limit or fall behind on payments, allowing your rating to gradually improve without actually doing anything.

Ask elsewhere

Banks may be the traditional source of money but other options are available. Borrowing from family and friends is a great way to get better interest rates and a more lenient repayment schedule. 

Just be sure to write up formal documentation outlining any agreement; the last thing you want is to lose loved ones over squabbles with money if things go wrong.

For Personal Needs Go For Personal Loans

Often it happens that we compromise with our needs and dreams, but now that time has gone. If you want then your bank will help you overcome this unwilling compromise. There are several kinds of personal loans available in the market for your personal requirements. Whether, it is a car loan or a house the bank offers you a short term or a long term loan.

Personal needs vary from person to person. It may so happen that you are in urgent need of money, but are unable to gather the amount at the moment. In such situations loans are the best option. It helps you to pay in instalments and also furnishes with the option of paying the principle amount when possible. Certain criteria are also to be followed while applying for a loan.

The medieval period people used to mortgage their property or any other particular asset when in need of money. When unable to do so they had to render the same to the money lender. People were exploited on such basis. Sometimes the forthcoming generations also had to endure this loan.

The best part about a loan is its flexibility. In terms of time, money etc. the loan system is the best. The one discussed here are about personal and car loan. A personal loan is the one which can be taken on any basis. The rate of interest is a little higher than all the usual loans.

This loan can be taken for fulfilling any need, say you need to renovate your house or want a new house or want a car. Therefore, it implies that the need is not specific but the amount is specific.

The basic requirement for applying for this kind of loan is a three year filed ITR, a salary receipt and an address proof. These three are the most basic and the most common one, but the specifications may vary from firm to firm.

However, for a car loan the system and the requirements are different. First thing or the point which differs is that this loan is specifically for a car. The next point is that the loan is given in the name of the seller and not for the buyer. The money is to be given in the form of instalments to the bank by the buyer. As soon as the loan is cleared legal papers are prepared which is a proof that the car now belongs to the buyers.

Well taking a loan is a very easy task, but it involves taking care of few points like there should not be any negligence at the time of EMI deposit or else the loan is supposed to be lapsed on account of lack of payment. There are several advantages of loan which can be studied when taken a deeper look.

The term loan is not new to people nowadays but there might be some confusion when it comes to applying or searching for a loan. Hence, for more information on personal loan or even car loan , you can refer the experts.

Preparing for the Future – Costs to Be Aware of

Life is full of surprises, many of which turn out to be financial. Even if you are an excellent budgeter there will probably be something that comes completely out of the blue that will knock you for six. 

Many experts suggest having at least nine months’ worth of income saved up for these unexpected and unplanned for costs. This is rather a huge amount and it’s not always possible. But you can prepare by being aware of some of the most common expenses that are rarely planned for.

Take a look over these expenses and try to find out a way of putting a little bit of money aside each month just in case they affect you in the future.

Presents and Gifts

It is quite astonishing how much money you can spend on buying gifts for others. You may have already planned ahead for special events such as Christmas and even set aside money for the birthdays of family and friends but what about when a friend has a baby, a christening, marriages, your children’s’ friends birthdays, retirements, new homes, or engagements. Life is full of times when gifts are given that fall outside of the usual routine.

Legal Bills

You may need to find the money to cover your legal bills. These can arise in all sorts of situations such as selling a home, illegal activity, suing someone and you should also consider the costs of making alterations to your will and testament, rental agreement or the Cost of gaining power of attorney. Legal bills can cost a small fortune so plan ahead and put money aside now.

Health Related Costs

Medical costs are another expense that can suddenly knock you for six. You may have to cover the cost of prescriptions, have surgery or diagnostic treatments or pay for long term care. Insurance is another expense as well as routine check-ups. It all costs money if you are unable to get the treatment for free or if you would prefer to use a private health care option.

Transportation Costs

Cars eat money when they are healthy and on the road let alone when they need attention. The work required to upkeep a care is constant. You will have service charges but also have to cover the costs of accidents, general wear and tear such as replacing brake pads and tires. If you have a car you will definitely benefit on building up some savings to dip into in the future. 

Losing a Job or Clients

There are not many careers out there that now guarantee that you will be in work for years to come. Finding yourself unemployed can be nerve-wracking. You should aim to have at least three months’ worth of wages saved up just in case the firm you work for closes down or needs to make some cut backs. If you are a freelancer you will also need to prepare for times when work slows down between contracts.

By saving you can at least work to soften the blow of unexpected expenses. Start saving now for a more comfortable future.

The author is a freelance copywriter with an interest in personal and business finance. His work has been frequently published on websites and blogs as well as in magazines over the past four years. Besides writing about finance he also has an interest in writing articles about small business start-ups.

5 Tips For choosing the Right IT Contractor Accountants

If you are someone interested in hiring an IT contractor accountant, but need a little guidance and tips for choosing the right IT contractor accountant for you, then this is the right article for you to be reading. Choosing the best IT contractor accountants for you is vital because they will be handling your accounts that could save you both time and money. The right IT contractor accountant should have the knowledge and expertise when it comes to dealing with money and suggesting the best options for you. 

Continue to read on to find out about the 5 tips for choosing the right IT contractor accountants that will help you with your decision in choosing the best one for you. 

1. Choose someone with years of experience

You can’t just trust anybody when it comes to your accounts because as a freelance contractor your needs are unique. You should always trust an accountant that has the top qualifications in this area. Select an IT contractor accountant that has had many years of experience with dealing with freelance contractors like yourself. Look for a contractor accountancy firm that is trusted or better yet, ask around from a friend or other freelance contractors where they hired their IT contractor accountant. 

2. Ask for accreditations

This is always vital in any type of job because accreditations give proof of what a person has really studied and what licenses they possess. Always ask for accreditations when looking for a contractor accountant. It confirms their credibility, expertise, compliance and professionalism. Make sure they have the following accounting accreditations: AAT (Association of Accounting Technicians), ACCA (Association of Chartered Certified Accounts and CIMA (Chartered Institute of Management Accountants). Of course it does vary in every state so do some research about what your state credits.

3. Tailor their services to your needs

Every freelance contracting business is diverse to another one. Make sure you hire a contractor accountant that can tailor their services to exactly what you need. An example is, if you only need an accountant to process annual accounts for you, then hire an accountant that will do just that. You don’t need an accountant who can do everything for you because it might be costing you a lot more than you really will be using for their services. 

4. Carefully ask about fees

Don’t just hire a contractor accountant because they are cheap and affordable. Although some accountants don’t charge all too much compared to others and are still great at their services, it doesn’t mean that just because something is “expensive” it doesn’t mean that it is the best. Accounting fees should be fixed at a monthly fee and should cover all administrative dealings with tax authorities, PAYE administration and VAT registration. The contractor accountant should have a clear description of what is included in their service package. Do some research on fees of contractor accountants.

5. Always check for the small details

Be careful when it comes to small print. Make sure you know exactly what you are paying for and what services are included. Check for extra fees because you don’t want to be surprised with the extras you may be paying for. Keep a close eye on this tip before hiring someone. Be sure of what services you are getting right from the beginning.

Positive Attributes of Bridge Loans

Bridge loans are common types of loans used in the domestic, commercial as well as industrial sectors. The loan is usually a short term loan that is taken out pending an approval of a larger loan or closing a transaction hence the proceeds from the main loan or cash gains will be used to offset the short term loan. Typical names for bridge loans include swing loans or caveat loans which range in time periods of between 2 weeks to as long as 3 years. These loans will usually feature higher market interest rates as compared to ordinary loans. Notable benefits of the swing loans include the following:

Real Estate Deposit

Bridge loans are quite common in the real estate sector where a potential buyer will acquire the loan to put as deposit for the house and when the realtor manages to resell the house, the proceeds from the sale are used to offset the loan. Overtime a real estate agent will be able to built credit worthiness and will occasionally use the loans in most of his transactions.

Foreclosure Deals

A homeowner facing financial constraints such as risking losing a property will source for a caveat loan to remodel the house and upon selling the property; he will pay back the loan. The homeowner may also use the loan as a deposit for a cheaper property as he waits for the main property to be sold.

Construction Industry

Developers will also obtain bridge loans during the initial stages of construction when a property is yet to fully takeoff awaiting permit approval. Upon meeting all the requirements, the constructor will acquire a construction loan which will be used to offset the short term loan.

Continuity in Business

A delay in payment will also lead to a business to acquire the short term loan in order for the business to run smoothly as they await the pending payments. A business will also use bridge loans to fund an acquisition while waiting for the final settlements to be drafted and affected.