FinanceDogma – Finance, loans, creditcard and mortgages

December 30, 2012

SBA Loan

Filed under: Finance — Tags: — admin @ 7:15 pm

The U.S. Small Business Administration was created by congress in 1953 to encourage the growth of commerce and aid in the forming of new businesses enterprises and to help with growth of existing enterprises. It acts in a way as a liason between congress and small businesses

The SBA loan program is a program that helps guarantee up to 85% of the loan amount. You still get the loan through the bank, only you have the SBA as a guarantor.. You might try to go to the bank and get a loan yourself first, and if you are turned down, ask if they would reconsider your request under the SBA loan guarantee program.

You may want to look into sba preferred and certified lending institutions.

You can approach the sba at any size or stage of small business development.

The SBA may take up to 10 days to process your application. Some of the main factors include collateral. If you don’t have colloateral, you won’t necessarily be rejected, but collateral is a very important factor in all loans.

To be eligible for the sba loan program a business must be operated for profit and must not exceed certain company size standards.

You can get a lot of business information at the local SBxA office and may even be able to find mentors with ‘SCORE’ – The Service Corps of Retired Executives which provides free counseling to small business owners.

December 20, 2012

Obtaining Your Annual Free Credit Report Is incredibly Crucial

Filed under: Tips — Tags: — admin @ 3:22 pm

The Fair Credit Reporting Act entitles each individual to 1 free credit report per calendar year. When applying for new credit, most of the time your application won’t be viewed by any person. It goes by way of a computer system program and is assigned a number called a credit score. The higher your score, the much better your credit is. The score determines a number of attributes for instance the interest rate you may be charged, your credit line and repayment terms. For those who have a high score, probabilities are you currently are going to be supplied a promotional rate which is either lowered or eliminated for a particular period.

The three important credit scoring companies, Experian, Equifax and TransUnion are secretive about what factors establishes the scores. Most specialists agree that payment history, percentage of credit line utilized, length of credit history, form of credit used, and recent credit inquiries are the most vital drivers. Other items like length of employment, length of residence, house owner or renter can move the number. Derogatory info for instance judgments as tax liens will cause a substantial drop.

In this era of automation, errors can take place. Comparable names, males with senior or junior after their name and misspellings can throw items onto your report in error. For anyone who is struggling to keep your amount high, 1 of these mistakes can drop your score, resulting in larger interest rates. The only strategy to uncover this info is by reviewing your credit report.

For example, let’s say you’re obtaining $2,500 worth of new furniture. The store tells you about their particular financing offer you. If your credit is within the top tier, you’ll have an interest free loan for 12 months. Middle of the road credit and your interest rate are going to be 4%. Poor credit raises the rate to 18%. What does this imply in dollars and cents? When you repay this inside the year, at the 4% rate, you pay about $100 for 12 months. At 18%, that $100 finance charge increases to additional than $450 for exactly the same furniture, exact same repayment schedule.

October 1, 2012

Online Payday Loans

Filed under: Tips — Tags: — admin @ 11:22 pm

Convenience, easy access, flexibility – are the words of the day when doing business with just about anyone, especially with an online payday loan center.

A payday loan is simply a short term loan that gaps the bridge between your immediate need and your next paycheck. It is relieving to know that when circumstances arise that demand an immediate need for money, an online payday loan is always available with the easiest, most convenient options to meet that need.

The average person has experienced the financial stress of counting the days or even the hours until the next paycheck. This concern is suddenly diminished when you realize that an online payday loan can offer you the money you need. Knowing that an online payday loan can give you the cash you need, the confidentiality you demand, and the security of having solved a problem is a great feeling.

When you choose to apply for an online payday loan, the extraordinary services that are offered eliminates the hassle that comes from the typical payday loan center. Most customers would prefer to complete any payday loan transactions with secure, courteous service and receive a favorable answer within minutes. With an online payday loan, the ability to provide this kind of exceptional service to an unseen patron is remarkable. Payday loan lenders are most likely aware that an adequate understanding of a customer’s personal life, financial struggles, and individual needs is imperative in order to thoroughly provide the affordable financial services they desire in a timely manner, and without unnecessary stress added.

Since the ultimate goal of an online payday loan is to get you approved, they don’t sweat the small things. Even the wealthiest person has had their share of some sort of financial difficulty or credit issue at one time or another. Most customers easily qualify for an online payday loan without bias, regardless of their credit history. Online payday loan centers want to see you with a smile on your face because you were able to pay a bill, help someone else, or simply pull out a few twenties (or hundreds) just to show off!

Almost everyone can afford the fees that are administered because many online payday loan centers offer options that are available to help you decide which payment plan is right for you. You never have to worry about outrageous interest fees because you know and agree in advance what you can afford to pay. 

So remember, the next time you are faced with an overdue bill, a medical emergency, or any other financial crisis, an online payday loan is the most flexible, convenient, affordable option to place cash in your hand when you need it most!

September 6, 2012

Secured Loans

Filed under: Finance — Tags: — admin @ 4:53 pm

The concept of a secured loan is a method whereby someone borrows money with a backup asset and should they default on their commitment, they will be able to then pay back in kind – for instance, this might be a car or property in this regard. Thus the asset can act as a collateral device for repayment security. The concept of secured debt is in semantic opposition to that of unsecured debt whereby there is not an actual asset to act as collateral against.

In the circumstances that the borrower would default with their payment contract, then the creditor would be able to take over ownership of that which was secured against. Furthermore, they might then sell the asset in order to gain remuneration to realise the cash basis of it. For instance, in the case of a house that was used in the sense of a secure loan, that house could be claimed, sold on and then the cash used to repay the debt. In the instance of course that the asset would be sold for more than the actual required amount, this could potentially provide a surplus.

In regards to the actual intention for taking out the secured loan, the purposes of it could first of all include trying to create more cash flow and credit in order to relieve existing payment requirements. Furthermore, this type of loan might be regarded as a more secure type than of course an unsecured loan. However, one aspect of this situation that would need to be taken into account is that the asset that is at stake might naturally increase or decrease in value. In the sense of a house that is used for mortgage purposes; this situation would be known as ‘negative equity’.

By having something that is secured the rates might perhaps be better than those in the situation of an unsecured loan – whereby in that instance there would not necessarily be a provision for the provider in the event that the borrower was unable to maintain their commitment – hence in that situation the lender might end up without any prospect of regaining their funds in the event of bankruptcy. Thus typically secured loans will be the clear preference normally for those who are seeking to lend out credit for those seeking loans.

Whilst having already mentioned about mortgages, terminology which is involved in that situation could include ‘nonrecourse’ whereby the house would be the only asset that could be used as collateral and the lender would have no further recourse after trying to sell it. A foreclosure is whereby property that has been mortgaged is sold in order to service the defaulted debt. Furthermore a ‘repossession’ is a situation whereby property for instance a car is taken by the creditor in order to claim back the money that was owed in the form of a secured asset again non-payment of that loan. This might be able to be done under a court order for instance.

September 3, 2012

Effective Tips for Budgeting Each Month

Filed under: Finance — admin @ 1:17 pm

Nowadays, it’s essential to budget. It doesn’t matter what type of money you make, the economy makes it hard to save money. It is a good idea though to have some sort of budget to ensure you have a little bit of a stash in the case something happens. By having a budget set in place you’ll be able to plan for long term expenses as opposed to just seeing expenses for the current week. Here are a few tips to help you out.

What Method Will You Choose?

When it comes to budgeting, there are a lot of methods that can benefit you. There are a number of methods you can do on your own, but there are some people that choose to bring in professional help, and in some cases this gets pricey. Keep in mind that no matter what particular method you choose you’ll want to make the most of it. Make it a method that’s going to match your lifestyle, and something as simple as some paper and a binder might be all you need. You can use software on your computer such as Excel which is great for budgeting.

Determine Your Bills

Map out what bills you have from month to month. Determine what you have as far as income coming in each month and make sure that your income can cover your bills. Take each of your bills and write them down on a piece of paper or put them in an Excel spreadsheet. Keep in mind these bills do not include food. Only list bills that are a basic necessity each month such as your housing or mortgage payment and the utility bill. If you have student loans, this becomes a necessity bill as well. Your gym membership is not considered a necessity bill; even if you have been going religiously.

Now you can list out your food bill and your gas expense. You’ll also want to list out any items your home needs such as laundry soap and garbage bags. Try and be honest or else you won’t really do yourself any good.

Allocate Income

Think about what you make each month or what type of money you are going to expect for the current month. If you don’t know an exact amount, try to estimate. Are you going to have enough to cover y your bills? Do your checks help cover you for the month or are you short? If so, you might want to re-evaluate your bills and see where you can downgrade. You don’t need a gym membership or the premium channels on your cable.

When it comes to budgeting, especially in today’s economy, it’s important to make sure you can at least pay for the necessity expenses. It can be hard to part with some of the luxuries, but unless you plan on getting a second income stream coming in, downgrading is going to have to happen until you cna get back on your feet.

Tip – Learn how to claim PPI back by visiting

June 13, 2012

Understanding your credit score

Filed under: Credit Card — Tags: — admin @ 9:59 pm

A great deal includes credit scores, especially recently due to the collapsing housing bubble and also the issues that came about from this. But just what involves identifying your credit score? Could it be foolproof or can you find difficulties with the machine? What defects exist? Does everybody still utilize it or is there other techniques getting used recently that people haven’t learned about?

What’s Your Score?

You will find several factors which go into identifying your score. Varying between 300 and 850, the score is affected through the following elements that are distributed within the following criteria: Payment history, Credit Utilisation, the peroid of credit history, the types of credit used and the recent requests for your credit score.

By looking into making your repayments promptly, getting a great period of credit history, and keeping a great ratio of credit accustomed to available credit you can preserve your score nearer to the greater end on the credit score spectrum which can lead to you getting further advantages on financial loans, including preferential rates.

Issues With The Scores

Some institutions have, a minimum of, used credit scores for a number of reasons, you will find some difficulties with the practice and also the scores which have given people stress about their stability when identifying how appropriate for a financial loan one is.

The greatest concern within the method is they could be used to improperly provide a better perception of the person’s credit standing. Since most from the score is dependent upon the ratio of credit accustomed to credit available, an individual can improve their credit limit on the credit card in order to improve their credit score despite the fact that it has no effect on remarkable ability to pay back financing.

Additionally, the main critique from the score product is it’s a bad predictor of risk when lending for an individual. This grew to become apparent throughout the housing crisis when banks were supplying subprime financial loans that individuals could not manage to pay back no matter what their score indicated since the moment the rates elevated around the loan they could not afford them.

Still Being Used?

Despite the fact that there’s some critique of these, the scores continue to be broadly employed for from loan programs for such things as houses and cars with a companies which makes it an ailment from the employing process. Some, however, are generally completely abandoning using credit scoring or will also be considering a possible purchasers current debt and employment status and earnings when thinking about them for a financial loan, because this provides a better picture of the capability to pay back the borrowed funds.

Know What Your Location Is

Even when you are not searching to create a large purchase soon that will need a loan, knowing where your score stands is a great way to know whether you have to focus on enhancing it. Additionally it is also a great way to discover if you have been the victim of id theft as possible discover if you will find open credit cards or financial loans inside your title that you simply did not authorize.

September 19, 2011

Behold, the Solo 401(k) – Good for Self-Employed Individuals

Filed under: investment — Tags: , — admin @ 12:41 pm

Ready to be your own boss? If you are, you might want to look over the fundamentals one more time. Now, we’re not trying to tell you that you haven’t thought about everything there is when it comes to freeing yourself from that pesky J-O-B and getting to be your own boss, setting your own schedule and planning for retirement. Oops, did we say that last part out loud? Unfortunately, a lot of people don’t stop to really think about their own retirement plans, thinking that they’re going to want to run their business all the way up until their deaths. That does happen from time to time, but may more people dream about a traditional retirement where they aren’t working. You have to decide for yourself what type of retirement makes sense to you. All things considered, you’re going to want to make sure that you can take control of your finances, and there’s no better way to really cap this process than to really think about retirement even as a self employed professional.

If you had a 401(k) from work, you can roll it over into a solo 401(k), which is actually the subject of this article.

Just what is a solo 401(k)? Well, it describes the type of retirement plan to a T — instead of the 401(k) you have at your old job, you will have a retirement plan just for you and you alone. This is perfect for self-employed professionals that aren’t taking on employees. So the solitary lawyer running his own one-man show is eligible, but the man dreaming about hiring a team of lawyers would do better with another retirement plan.

The obvious benefit of a solo 401(k) over other self employment-oriented retirement plans is that you can sock away a lot more money. If you haven’t heard of the solo 401(k) or the Individual 401(k), don’t beat yourself up. It’s actually quite new in terms of tax laws — established in 2001, which means that it’s only been around for about a decade.

At the time of this writing, you can contribute up to 49,000 a year, which is also tax-deductible. These tax-deductible contributions can definitely grow, and that means that you’ll be able to let more of your money grow without tax interference.

However, before you jump right into the new 401(k) fun, it’s important to understand a few more things. First and foremost, the big 49,000 (54,500 if you’re over 50) number is actually composed of two parts: the salary deferral contribution plus the profit sharing contribution. This will be different for different business structures.

Let’s cover the sole proprietorship, one of the simplest businesses around. It’s not a separate legal entity, which means that it exposes the owner to a lot of liability. Still, this is the one that requires the least amount of paperwork, and that’s definitely a good thing. In the case of a sole proprietorship, you will need to calculate the net adjusted business profit. This is simply the gross revenue that you brought in for the year and then subjecting all of your business expenses, plus half of the self employment tax (you are paying yourself employment taxes, right?). This number is held at a maximum of $16,500.

The profit sharing component comes into play where you can make up to 20% of the net adjusted business profits. So essentially, that makes up the other half of the $49,000. If you’re not sure how this plays out in real life, you will need to ask your tax professional of choice for assistance in order to make sure that you got this number correct.

For a regular corporation, you can just refer back to the W-2 issued out. You can contribute up to 100% of W-2 earnings, and then 25% of W-2 earnings for the profit sharing contribution.

Keep in mind that the assets you put into a solo 401(k) will grow tax-deferred, which does mean that you won’t pay taxes on any dividends or investment earnings until you withdraw the assets themselves. You can withdraw the money after 59 1/2 without penalty. If you decide to withdraw the money before then, you will end up paying income taxes as well as a 10% penalty for the privilege.

However, what if you need the money really badly and you don’t have any other choice? Consider tapping the other benefit of this retirement plan — tax-free loans. You will be able to get a loan for half of the total balance, up to $50,000. The loan repayment schedule is usually done over the course of 5 years, though the purchase of a primary residence can extend this to 15 years. You will get your money from an individual 401(k) tax free as well as penalty free, but this is provided that you pay back the loan on time. You really don’t want to miss a payment — you will default on the loan and have to pay a lot in taxes as well as IRS penalties, as it’ll be counted as an invalid withdrawal just like if you had withdrawn the money before 59 1/2 under other circumstances.

Even though you will have to pay back the money with interest, you will get to put the money back into your retirement account as well as the interest. That’s something that isn’t offered with SEP IRAs or Roth IRAs.

Overall, if you’re really ready to take things to the next level, you really need to stop and get yourself a good retirement plan like the Solo 401(k). Since the rise of the Internet has caused a new revolution for the world of finance, you will want to make sure that you go online to open up your Solo 401(k) account. You won’t have to worry that the investment advisors won’t be able to answer your questions. After being around for a decade or so, this is a plan that accountants and other tax professionals are now familiar with, and they can help you get started in the right direction. The other benefit of managing your money online is that you can actually watch it grow and get reports — even text and email alerts sent to your phone and email address, respectively.

With so many benefits waiting for you, there’s no reason not to save for retirement with a Solo 401(k) plan — even when you’re self employed!

March 8, 2011

Interest Only Mortgages-How Do they Work?

Filed under: Mortgage — Tags: — admin @ 12:48 pm

Interest only mortgage options are available to you, and though most mortgage brokers consider them extremely risky, knowing the information for yourself will help you to decide what’s best for you.

Are Interest Only Mortgage Right For You?

An interest only mortgage is a mortgage property that is designed so you can pay only the interest on your monthly payment, or choose to make a payment toward your principle as well. Often, you’ll find that mortgage brokers avoid selling an interest only loan because they feel that they’re too risky, but you can make the choice for yourself if you know the truth about these types of loans. Of course, not every loan will be right for every consumer, and this is especially true for these products. If you are thinking about using a loan like this, then you need to have a plan in effect.

What, Exactly, Is An Interest Only Loan?

These are loans in which you only have to pay the interest due on your mortgage each month, for a certain term. At the end of this term, you’re presented with a variety of options. The term is generally between five to seven years.

Pay Off Your Principal

The interest only payments will not affect the principal at all. Once the term is up, you can then choose to start making payments on your principal. At this point your payments will increase, but the overall balance won’t change.

February 25, 2011

Save money by walking instead of driving

Filed under: Finance — Tags: — admin @ 1:17 pm

Ok, so the title might be a bit extreme at first glance… after all, cars are for driving, right? Who really has time to walk everywhere, or even ride a bike nowadays? In an age where we race to and fro, from business meeting to soccer game and back again, it can be hard to tell whether we are coming or going. To people who live very busy lives, or to people who are used to driving absolutely everywhere, it might seem absurd that you could find the time or the energy to actually walk anywhere… much less to do it everyday!

Well, as right as you may be to say that the concept of leaving the car behind full-time is a bit outlandish, there is another side to the coin that deserves a proper in-depth look… if you are not really ready to sell your car and ride your bike to work every single day, why not come up with a few compromises?

If you live far away from your workplace, then you might have no other option but to drive to work. However, what about lunch time? Odds are good that there are plenty of good places to eat within easy walking distance of your workplace, especially if you work in town! Why not toss the keys on the desk and take a relaxing walk to your favorite lunch spot? This will save you some money on gas in the long run, but it can also relax you and give you some time to rejuvenate your senses. Driving all the time is actually quite stressful, whereas walking can help you to take a deep breath and just be by yourself for a little while. No red lights, no honking horns… and best of all, none of that $4-per-gallon-gas getting sucked into your engine and burning to fumes!

Now, if you live close to your workplace, and if your neighborhood is a pretty safe one, it might actually be very beneficial to ride a bike or walk to work instead of taking the car. Over time, this can save you a lot of money in fuel. Even if you only walk or ride a bike a few days a week, this will build up over time to really cut down on your vehicle‘s operating costs.

Whether you walk to work, or just up the road to the convenient store, walking is as good for your pocket-book as it is for your well-being! So if you find yourself about to set out on a quick little jaunt on a nice summer day sometime as spring gets underway, really put some thought into leaving the car behind, and sporting some tennis shoes and walking shorts for a change!

February 21, 2011

Make long term goals to streamline your spending

Filed under: Finance — Tags: — admin @ 1:12 pm

As hard as we all try to save money and spend less, one thing quickly becomes apparent… even if you make a good wage and have a great, steady job… the money always seems to go somewhere! And there is a lot of truth to the simple statement that says money was made to be spent! We may not like the guy who first said this, but in the end it seems that he was right. We work to make money so that we can, inevitably and over the course of time, spend it on the things that we need and want to have.

So, taking this principle into account, one might say that saving money is not so big a question. Rather, shouldn’t the question we ask ourselves be “how is the most effective way to spend the money that I have”? This is an interesting thought, if you really think about it. And, as crazy as it sounds at first, you have to agree that there is a measure of truth to it. How can we streamline our spending so that we spend our money in the most effective and meaningful way?

Well, there are a lot of ways to answer this question, but here are a few tidbits to nibble at in the meantime.

First of all, you need to figure out what you want to be doing in a year, five years, ten years, or even forty years down the road. Do you have any idea where you want to be, or what you want to have in ten years? If you do, then you are actually a step ahead of the crowd! Most people do not think this far in advance, but thinking and making some tough decisions now rather than later can actually pay huge profits down the road.

For example, do you want to own a restaurant at some point? Well, if you do, then you should streamline your spending so that the money you spend NOW impacts that plan in a positive way LATER! So, if you have to choose between a night out to the movies or a new cookbook, buying a cookbook might actually make more sense in the long run. It might not seem as fun NOW, but in ten years you will look back and not feel like that money was wasted as you might if you spend it going out to the movies.

This is truly a deep subject, but it is definitely something to consider as you plan your budget and spend your money. You only have so much of it… so why not spend it in the wisest and most well-planned fashion possible? It might just make the difference between having enough to get you to where you want to be some day, or falling short along the way.

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