January 31, 2011

A quick and easy way to avail of a loan. An overview on Payday loan in the UK.

Payday loans are such loans which you can get within 24 hours. The basic criterion of availing of such loans is to have a good job and you need to repay the loan by your next payday check. People in the UK for the past 4-5 years are getting more inclined to it than the last decade. Now let’s check out why such fast cash is gaining more popularity in the UK.

                                        payday loan
  • A payday loan is taken when a person is badly in need of fast cash. To clear off utility bills, make payments to your existing debt, some fees charged by banks, such type of quick money is an in thing now in the UK.
  • The economic problem in the UK has also been a major reasons for the Britons to go for such loan. The impact of economic downturn has been on the credit availability for consumers and hence, payday loans are an easy and only source of credit in the tough times.
  • The invasion of USA companies in the UK has also played a part in the growth of payday loans. The US market is driven by state laws and there is less scope of innovation or execution. UK has more stable regulatory environment and there is also scope for new things and hence, creating more demand for it.
  • Unlike USA where a person has to wait a day to get the get in his/her hand for the loan, UK consumers just get the money within a matter of hours via online lending. The convenience of getting money in a jiffy is making it more popular in the UK.
Apart from the above specific reasons, the fundamental of such loans are also making this loan popular.
  • There is not credit check to apply and to get the loan processed. So, a person with a bad credit can also go for this and get money and clear off his existing debts.
  • The processing of a payday loan is very fast and one can get the money within a day. So, no hassle for getting money is also driving people towards this loan type.
  • You need not provide collateral while getting the loan. You need just a good job or a regular source of income by which the lenders must be convinced of the repayment.
So, payday loan or fast cash advance can be a best choice when people are in dire need of money and do not want to go through a strenuous processing. It’s fast and easy and more convenient.
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January 28, 2011

4 Things To Remember When Foreclosure Looms

"You've missed a mortgage payment, or have just lost your job and expect to do so in the next few months. Or maybe you've already missed a few and your lender has sent you a default notice. The risk of short sale and foreclosure have become more and more present in the past two years, yet home-owners are still in the dark about how to deal with them. It partly explains why the Short Sale foreclosure process often fails: a lot of people just take the wrong approach. If you think you're at risk, here's a list of things you'll need to know.

                                    short sale and foreclosure
How Much You Owe

Your chances of avoiding short sale and foreclosure, and thus staying in your home, are largely dependent on your total debt. For instance, most short sale foreclosure alternatives take into account your debt-to-income ratio, or how much of your monthly income goes into paying your mortgage and other debts. Consult a real estate agent or attorney to see if your DTI qualifies you for mortgage aid, or whether you're really better off with a short sale foreclosure.

What Your Options Are:

Mortgage troubles aren't a one-way ticket to short sale and foreclosure. There are ways to resolve things with your lender and even keep your home. Start by calling up their loss mitigation department and asking about their programs. Some home-owners qualify for less complicated alternatives such as
loan modification or refinancing. Opt for a short sale foreclosure only if you've exhausted all other options.

Possible Credit Effects:

No matter what you choose, you can expect at least some damage to your credit score as a result of falling behind. But that shouldn't keep you from trying. Focus on minimizing the damage and rebuilding your score, rather than the credit effect itself. Your short sale agent or attorney can help you better understand the credit implications of short sale and foreclosure, and help you find ways to deal with them.

What Happens After:

Whether you keep or lose your home, you need a plan for the months or even years following the short sale foreclosure. For example, your borrowing options may be limited for a while, so create a monthly budget that will keep you from relying too much on credit. You can also start building a positive rental history (if you opted for a short sale) so that you can re-establish your credit score and qualify for a new mortgage sooner."

Author is a professional short sale/ real estate agent who completely have a handle on the Short Sale process and helps people who need short sales, or who want to sell for any reason. He also helps people who are having difficulty but want to keep their home. Visit his website to get more information about Short Sale, Mortgage Short sale: - http://www.shortsalesafe.com

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January 24, 2011

Learn the 2011 Rules for Charitable Contribution Deductions

Giving to charity can make you feel good, help a lot of other people get things that they need, and provide you with a great break on your taxes. With that in mind, it's very important that you know what you can deduct and what you can't.
You don't want to end up struggling with the IRS during an audit because you claimed something you shouldn't or didn't keep adequate records. The tax codes and laws are always changing, too, so you have to stay up with them - or hire someone who does. There are three cardinal rules to remember when it comes to charitable donations.
  1. Donate only to a legitimate charity whose status as a charitable organization can be verified.
  2. Always get a receipt showing the value of the items.
  3. Itemize everything on the receipt, so you know (and can prove) exactly what you donated, specifically.
                                       Charitable Contribution
Those may sound like common sense issues, but you would be surprised as to how many people simply don't think about those types of things. They don't get a receipt, don't itemize it, or don't give to the right kinds of places. It's great that you gave a warm jacket and some cash to the homeless lady in front of the supermarket, because she needed those things, but you can't take a tax deduction for doing that.

There are a few other things that you should know about charitable contribution deduction rules for 2011, too, so you can make sure that you do things right. That way you'll get your deductions and, should you get audited, you won't have a problem proving that you actually gave what you say you gave.
  1. Give your time instead of your money. You can write off the mileage to and from volunteer activities, and you can also deduct anything that you need to buy for that volunteer work.
  2. Clean out your closet and your home instead of giving cash- you can even donate your older car to charities like Kars4Kids. That can really help you if you don't have a lot of money to give but you want to do something good. Just make sure the items you give are in good condition and someone else will find them usable. Charities don't want your trash, and you can't legally take a tax deduction for items that aren't in 'good used' condition or better.
  3. If you're a senior citizen, you can get extra breaks. You have to be at least 70 and 1/2, so if you're in that age group, be sure to ask your tax advisor about your options if you want to give large amounts to charity.
There are all kinds of good reasons to give your time, money, or personal items to charity. Getting a tax break is just one of them, but it's an important one. Be sure that you know the rules and ask questions if you're not sure.
That way you'll get the maximum benefit from helping other people and you won't have a problem with the IRS if you're contacted and asked to prove your charitable giving.
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January 21, 2011

How to deal with CRA when you dispute your credit report? Watch a very good video

It's often found that we dispute our credit report. Now the authorized agencies who handle those disputes at times tend to ignore it. Well, you get your credit report and you see there are discrepancies on the report. Who to approach now? Of course your credit bureaus. You call on the recheck or reevaluation of your credit report will fall on deft ears of those three biggies namely Equifax, Experian and Trans Union. However, you have ways to deal with this too. Recently, I have come across a wonderful video on this. Though, it might not be that much relevant here but this is really helpful and you will surely get a grip on this.



Thanks YouTube for having this video.
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January 10, 2011

How Real Time Credit Card Processing Works?

When a merchant accepts credit cards for products or services, they must decide which type of credit card processing will work best for their business. There are two types of credit card processing from which to choose; batch processing and real time processing. Deciding whether batch or real time processing is the best fit for your business will depend on several factors. There are pros and cons to each type of processing. Here we look at the advantages and drawbacks of using real time credit card processing.

What is real time credit card processing?

When a credit card is used to pay for a product or service, the merchant receives payment via a credit card processing system. With real time processing, an authorization is obtained immediately and each transaction is processed on an individual basis. This is different from batch processing where all of the credit card data is stored and then transmitted for processing in a group or "batch" at a later time.

Advantages of real time credit card processing

Merchants who need immediate authorization do well with real time processing. Since the credit card information is processed at the time of sale, merchants receive approval or in some cases denial, while the customer is still present (or in the case of online sales, before a product is shipped). This protects the merchant from accepting a credit card for payment that may not have the available funds to cover the purchase. Real time credit card processing is popular with Internet businesses as well as retail and restaurant businesses that require immediate authorization before completing the sale. As a general rule, real time credit card processing is faster and cheaper than batch credit card processing.

                              credit card processing

Drawbacks of real time credit card processing

With the obvious benefits of real time processing, many merchants may question why anyone would choose batch processing. The potential drawbacks of real time processing should be considered before making a final decision. A common concern with merchants using real time processing is fraud. If a thief were to present a credit card that has not yet been reported stolen, it is possible a transaction will be approved and processed with no one being the wiser. Credit card companies protect account holders who have been the victim of fraud, therefore it is the merchant that most often loses in this situation. Another potential drawback with real time processing may occur is there are problems with your processing equipment such as the server. Without the ability to immediately transmit data, merchants may find themselves unable to accept credit card payments at all.

There are clearly many factors which must be taken into consideration before deciding which type of credit card processing is best for your business. It is also important to compare how much it will cost in fees and equipment for each type of processing. By taking your time and doing research to learn how each process works in detail, you can make an informed decision regarding the processing of your credit card sales.
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January 6, 2011

Exchange Traded Funds (ETFs) Taking over from old style stocks

Exchange Traded Funds started out as a sort of novelty. They were very high value, sometimes as much as $200 per unit, and they were considered "boutique" investments. Now, they're the financial equivalent of home insurance, a nice easy to manage nest egg investment with a lot more stamina than mutuals and basic stock investment.

                         etfs

The changing investment market

ETFs are as much a cultural shift as a change in investment patterns. The traditional stock market has hit a point of becoming a bit too detailed. Investors want returns, not to spend years studying the theory and practice of stock investment. ETFs, because they include baskets of stocks, are a style of investment which is really based on subjective performance of funds.
The logic is simple enough:
  • ETFs invest in a specific area of the market.
  • They're weighted to achieve particular results.
  • Their performance is transparent, because of their structure.
  • Their fees are transparent, advertised by prospectus.
  • They can be bought and sold in real time.
  • They can be compared against other funds and the indices as well.
  • They're good traders in many cases, with very high volumes and good price moves over trading periods.
This situation works with another cultural issue- Market wariness. The GFC didn't exactly reassure anyone that the stock market was a great place to invest. A lot of people lost a lot of money. Even hedge funds got hit. Wall Street did itself no favors in terms of its own credibility.

ETFs also got hit, but there were some surprises. The mortgage security ETFs, for example, took the full wallop of market reaction, their prices plunged, only to rebound just as quickly. The market discovered that the mortgage security ETFs were holding prime AA and AAA securities, not the garbage foisted on the market.

(Citigroup, when given its bailout money, cherry picked a lot of these securities, and got itself out of trouble in 12 months.)

The evolution of the ETFs

The ETFs have evolved into good traders as well as stronger investment options. The prices of the old high value ETFs deteriorated thanks to the GFC, but have reemerged as good traders, so popular they trade in millions of units per day. The new generation of ETFs are obviously slanted to trading values, with major league banks like Deutsche Bank opening a raft of ETFs on the DAX and even the mutuals starting to look at opening up their own ETFs.

This has happened largely because the ETFs have been pulling money away from the mutuals and other forms of investment. There's now at least a trillion dollars under management in ETFs in the US alone, and that volume is mainly the result of recent investments.

ETFS pay dividends, do unit splits, and perform according to consistent financial practices. They've become the equivalent of contents insurance for investors, because their real values are clearly defined on a daily basis, not based on market hype. They perform relative to indices and do what good investments are supposed to do- Build value over time.
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Is Debt Settlement a viable option? Why may your creditors go for a debt settlement?

Credit card debt can lead to many undesirable consequences, including stress, uncertainty and poor credit. Consumers that are suffering from mounting credit card debt are haunted by creditors, debt collectors and the impossibility of good credit in the future; all of this can lead to mental and emotional stress. It is important to choose the debt relief program in the right way according to individual lifestyle and needs. While there are many viable options out there, the debt settlement should be considered because it really works.

                      the debt

Credit card debt settlement is an innovative form of debt relief where a creditor accepts as little as 40% of what is owed to satisfy a full balance owed. There is one caveat, however. In order to qualify one must be at least four months behind on their payments to their creditors. This also explains why creditors are willing to agree to an arrangement where they're not receiving full payment.

The main reason for this is the last thing that a creditor wants is to deal with the possibility of bankruptcy. When a consumer files for bankruptcy, it means that the debts are wiped away without payment; creditors will not get any of the money that they are owed if this happens. If there is a possibility of no payment at all, creditors are a lot more likely to accept a portion of the debt by coming up with some sort of settlement.

Keep in mind that many creditors who feel that they have slim chances of seeing payment have the option to sell your debt to a "bad debt buyer" for a fraction of the original cost. The creditor loses money on the deal, but still makes out with more than would be afforded because of bankruptcy. The purchaser of the debt will then turn around and negotiate a much lower payment that is more than they paid for the debt and will maximize their own profits. Though everyone else seems to benefit, if just a small amount, the consumer does too; debt is settled for less than was originally owed and is a more manageable option for payment.

Finally, creditors are in some cases sympathetic to the situation of the debtor. It is often thought that creditors are after payment only, having no sympathy for hardships. While this may be true in some cases, it isn't always the case and should not be assumed. Creditors are well aware of the potential that a consumer will not be able to pay off the debt. This is a looming possibility with any transaction and creditors can sometimes be understanding when a consumer can no longer pay, especially for those who have been faithful with payment for some amount of time.

Robert Zangrilli is the CEO of Franklin Debt Relief, a company specializing in debt settlement programs for consumers.
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