Credit card basic information

When choosing a credit card think about how you'll use it. You may want to compare some of the features of various credit cards to see which one will suit your financial needs.

Consider the annual percentage rate or APR. The APR measures the cost of credit on an annual basis and may be the easiest way to compare costs among credit cards. Usually, the lower the APR, the less you'll be charged for credit. The APR includes the interest rate and other costs, such as service charges or loan fees. If you expect to pay back less than the full amount you charge each month, you'll have to pay finance charges on the unpaid balance. In this case, choose a card with a low APR.

Examine the annual fees. Many companies charge an annual fee, no matter how much or little you use your card. If you intend to pay your credit card bills in full each month, you won't have to pay monthly finance charges, so a card with a low or no annual fee will be more important to you than one with a low APR.

Find out if a card offers a grace period. A grace period allows you to avoid finance charges if you pay your bill before its due date. Some cards have no grace period and begin to impose finance charges the day you charge an item. Other cards offer grace periods from 21 to 30 days. Cards with longer grace periods will save you money if you pay all of your charges each month.

Finally, check card offers to see if you will be charged a fee for paying your bill late or going over your assigned limit. These types of additional charges add to the total cost of using your credit card.

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Make Debt Consolidation Firm Working for You

Finding yourself under huge debt is a nightmare turned reality for many people. No matter how hard they try to pay off their debt it just never seems to go down. This is where debt consolidation comes in. Debt consolidation allows you to have one bill from one company every month.

The first important step is finding a debt consolidation company that is right for you. You can take advantage of the internet to make your search. Look at the review of other people like you, find the best recommendations.
The company that you choose will send you a monthly statement with all of your bills consolidated into one. They are the only company you will have to pay for.

This can be great advantage for those who have trouble keeping track of the numerous bills they need to pay each month. You won't miss or forget a payment. This can also be good for those who have many different, and possibly high, interest rates. Since the debt consolidation company will give you only one interest rate. Make sure that it will be much lower than many of your current rates, which will reduce your overall payment.

You no longer have to avoid creditors calling you. Since you are only dealing with one company there will only be one creditor to discuss any issues you may be having and one person to negotiate your payment plan.

However, there are many unreliable credit consolidation companies out there with only one goal in mind - to profit off of you and take your money. These are the types of companies that you should be avoiding!

How do you know which company is a legitimate company looking to truly help you? First, try to move away from companies who try to sign you into an agreement quickly or who do not take the time, to have an in-person consultation between you and one of their consultants

A good company will then determine if they can give you a lower monthly payment, without raising your overall repayment by doing things such as giving you a higher interest rate, than you already have. If so, they will let you know how much your payments will be and also help you determine exactly how long it will take to pay off.

Check your local Better Business Bureau, and any other consumer reporting agency you can find, to make sure there are not an overload of complaints about the particular company. If they have not been around long enough to tell then it is wise to go with a different company instead.

Debt consolidation can help you take control of your bills and mounting debt if it is done right. You have to pick the company you choose carefully and remember not to jump into an agreement to quickly. Take some time to read over and inspect any contract you are asked to sign.

Get Out Of Debt

You're drowning in debt, credit card bills are piling up and you are highly stressed. Over 70% of the American population is seriously in debt. There are debt consolidation companies out there who claim they can help consolidate your payments and work with your credit card companies to get your interest rates down; but beware of such claims. I cannot count how many companies like these have gone under or have been in a negative spotlight because they have not followed through with their claims. Many people have lost money and ended up having to file bankruptcy because a debt consolidation company burned them. Don't get me wrong there are some good companies out there that will help you with your credit and debt problems, but you need to research different companies in order to find a reputable company. The first thing you should do is be sure to verify with the Better Business Bureau that the company doesn't have any complaints on record, if they do this should raise a "red flag" immediately. Another option is to check with family, friends and colleagues to see if they have used any of these companies or if they know of a good one.

You should be aware of:

1. If you are having them pay your payments for you it will show up on your credit report. This usually lowers your credit score because creditors and financial institutions see it as one step before bankruptcy. Make sure you know what you are getting into and understand your contract completely.
2. Explore the option of a home equity loan or line of credit. Banks usually offer better rates on home equity loans plus they have an advantage; they are tax deductible. If you have equity in your house and your credit history is fair, a home equity loan could be a great alternative for you to be able to manage your debt and pay it off quicker. There are so many programs available that there's a good chance you will be able to find one that will work for you. You need to choose a reputable bank or mortgage company and make sure you select a trustworthy loan officer.
3. Credit unions are also a good option because they want to loan money for the interest and most of the time the loan officers aren't expecting a big commission check.
4. Call up your credit card companies and try to negotiate a lower interest rate. Second, check to see if you can transfer balances to a lower rate. Start with the highest interest rate and go down.
5. A mound of debt doesn't have to mean bankruptcy is the only choice. If your debt is out of control and you think you have run out of options then review the suggestions listed above and see if there is one that can work for you. Don't quit, with a little effort and research, you will be able to get your finances under control.

Before Choosing a Credit Counselor

1. Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

2. Avoid organizations that push a debt management plan as your only option before they spend a significant amount of time analyzing your financial situation. DMPs are not for everyone. You should sign up for a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.

3. Many states require that an organization register or obtain a license before offering credit counseling, debt management plans, and similar services. Do not hire an organization that has not fulfilled the requirements for your state.

4. Avoid organizations that charge for information about the nature of their services.

5. Don't commit to participate in a DMP over the telephone. Get all verbal promises in writing. Read all documents carefully before you sign them. If you are told you need to act immediately, consider finding another organization.

6. Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.

7. Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote. If you're concerned that you cannot afford to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your circumstances. If an organization won't help you because you can't afford to pay, look elsewhere for help.

8. Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse.

Debt Consolidation Loans

Debt consolidation loans are personal loans that allow people to consolidate their debt into one monthly payment. The payments are often lower because the loan is spread out over a much longer period of time. With one monthly payment and a fixed monthly payment schedule, you may actually see the end to those monthly payments.

Although the monthly payment may be lower, the true cost of the loan is often dramatically increased when the additional costs over the term of the loan are factored in.

The interest rates on personal debt consolidation loans are usually high, especially for people with financial problems. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. Lenders frequently target people in vulnerable situations with troubled credit by offering what appears to be an easy solution.

Personal debt consolidation loans can be either secured or unsecured. Unsecured loans are made based upon a promise to pay, while secured loans require collateral. Upon default of the loan payment in a secured loan, the creditor has a right to repossess any of the items listed as collateral for the loan. In many states, a person filing bankruptcy can remove the lien on the household goods listed as collateral and eliminate the debt.

Be careful about putting up your valued property as collateral. With high interest rates and aggressive collections, you might find yourself scrambling to save your car or personal property. If you're not careful, you can end up deeper in debt than when you started.

Mortgage rate and real estate appreciation

The labor market improved in December, with the addition of 157,000 payroll jobs. Coupled with the upward revision of 34,000 jobs for the prior two months, 2.2 million jobs were created during 2004 – the most in a single year since 1999. The manufacturing sector also added jobs in December, consistent with late 2004 reports of a pickup in factory orders during the fourth quarter. The decline in the foreign exchange value of the dollar is likely to support additional manufacturing gains in coming months.

The minutes of the Federal Open Market Committee's (FOMC) December meeting confirm that the Fed views monetary policy as accommodative and this accommodation could be removed at a “measured” pace. In plain English, this means that the Fed is very likely to continue the course it started on last June—that is, quarter-percentage point increases in the Federal Funds target, announced at FOMC meetings, but not necessarily at every FOMC meeting. The FOMC is likely to nudge the Federal Funds target up to 2.5% at its next meeting (February 1-2), with further increases later in the year. We anticipate that the Federal Funds target will be set at 3.0% by midyear and at 3.5% by year-end. With inflation remaining tame (between 2% and 2.25% in 2005), the outlook for long-term interest rates, such as on fixed-rate mortgages, also remains very good, with fixed-rate mortgages up only about one-half of a percentage point over the year. Thus, the yield curve should continue to flatten over 2005, as it did over the second half of last year.

Higher, but still modest, mortgage rates means that the housing market should have another splendid year in 2005. Housing starts and home sales should fall short of the record pace of last year, but only by 1% to 2%. House price appreciation should also moderate, but come in at a brisk 7% appreciation pace for the average single-family house.

The flatter yield curve will likely entice lenders to increase the size of interest-rate discounts that they offer on ARM products in order to maintain ARM volume. Initial-rate discounts increased from 0.4 percentage points at the beginning of 2004 to 1.3 percentage points at the beginning of this year for the 1-year, Treasury-indexed product. The flatter yield curve will likely increase consumer interest in hybrid ARMs; the 5/1 hybrid is already the most popular ARM product, accounting for two-in-five ARM loans made last year. Higher mortgage rates will further reduce refinance originations as the year unfolds. Homeowners are likely to resort to HELOCs and other second-lien products to convert home equity into cash; over the year ended September 30, 2004, HELOCs and seconds accounted for almost 20% of single-family debt growth, and should contribute significantly to debt growth in 2005.

Bridging Loan

A bridging loan is a high interest, short term loan you would choose when you have a requirement for short term specific funding. For instance, a bridging loan is a loan used to “bridge” the financial gap between capital required for your new property completion prior to your existing property having been sold.

Bridging loans are short term loans arranged when you need to purchase a house but are unable to arrange the mortgage immediately for some reason, such as there is a delay in selling your existing property. Timing is of the essence when selling one property and buying another.

A bridging loan can be used to raise capital pending the sale of a property.

Bridging loans can be arranged for any sum and can be borrowed for periods from a week to up to 1-2 years. Because of the nature of bridging loans they can usually be arranged at short notice and within a few days.

A bridging loan is similar to a mortgage where the amount borrowed is secured on your home but the advantage of a mortgage is that it attracts a much lower interest rate. While bridging loans are convenient the interest rates can be very high. When considering a bridging loan, remember that you may be paying not only for the bridging loan but also for the mortgage on your existing property.

Prime Loan Interest Rate

Prime Loan Interest Rate Forecast

%, Average of Month.

	Aug 2005	Sep 2005	Oct 2005	Nov 2005	Dec 2005
Forecast Value	6.25	6.50	6.50	6.50	6.50
Standard Deviation	0.1	0.1	0.1	0.2	0.3

Three major Factors In Your Interest Rate

There are three major factors that affect how much interest you pay for a loan or for your mortgage.

1. Federal Reserve Discount Interest Rate.

Banks and other lending institutions borrow money from the Federal Reserve Banks. The discount rate is the interest rate a Federal Reserve Bank charges financial institutions to borrow funds on a short-term basis. This rate is set by the boards of directors of the Federal Reserve Banks. The discount rate has a direct effect on the “Prime Interest Rate”, which is the interest rate on short-term loans that banks charge their commercial customers with high credit ratings.

This is probably the most important factor; however as consumers we don't have any option to control it.

2. Lender Business Factors.

Banks and other lenders are in business to make money. If they charge lower interest rate, based on your credit history and the prime rate, they risk going out of business. If they charge too much, they risk losing you to a competitor. Therefore, in order to get the best deal you can, you should always shop around and make sure you get the best deal out there.

You should remember that one of the things that affects your credit score is the number of times your credit report has been accessed in a certain period of time. Therefore allowing too many potential lenders to run your credit report in a short period of time could be not useful at all.

3. Credit Report and your FICO Score

There are companies that gather and sell information about where you work and live, how you pay your bills, and whether you've been filed for bankruptcy. They are called Consumer Reporting Agencies (CRAs). The most common type of CRA is the credit bureau. Potential lenders will ask your credit report from one of the three major credit bureau.

You can help your FICO score and credit report by paying your bills on time and not getting into bug debt. You also have the right to have false information removed from your credit report.

In order to get the best rate you can, you can do few things; keep up a good credit history by paying your bills on time, and shopping around for the best rate.

The interest rate on the home equity loan

Interest rates for loans differ, so it pays to check with several lenders for the lowest rate. Compare the annual percentage rate (APR), which indicates the cost of credit on a yearly basis. Be aware that the advertised APR for home equity credit lines is based on interest alone. For a true comparison of credit costs, compare other charges, such as points and closing costs, which will add to the cost of your home equity loan. This is especially important if you are comparing a home equity credit line with a traditional installment (or second) mortgage, where the APR includes the total credit costs for the loan.

In addition, ask about the type of interest rates available for the home equity plan. Most home equity credit lines have variable interest rates. These variable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line.

If you are considering a variable rate, check and compare the terms. Check the periodic cap, which is the limit on interest rate changes at one time. Also, check the lifetime cap, which is the limit on interest rate changes throughout the loan term. Ask the lender which index is used and how much and how often it can change. An index (such as the prime rate) is used by lenders to determine how much to raise or lower interest rates. Also, check the margin, which is an amount added to the index that determines the interest you are charged. In addition, inquire whether you can convert your variable rate loan to a fixed rate at some future time.

Sometimes, lenders offer a temporarily discounted interest rate -- a rate that is unusually low and lasts only for an introductory period, such as six months. During this time, your monthly payments are lower too. After the introductory period ends, however, your rate (and payments) increases to the true market level (the index plus the margin). So, ask if the rate you are offered is "discounted," and if so, find out how the rate will be determined at the end of the discount period and how much larger your payments could be at that time.

Recommended Home Equity Loans Companies

Home Equity Loans related articles & information:
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• Home Equity Loan - Basic
• Is a home equity credit line for you?
• How much money can you get on a home equity loan?
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Equity Home Loans

Apart from what the people who read this article imagined about

the hot potato which is low home loan before, the textual item that appears before you is without a doubt going to sweep you off your feet.

Are you puzzled because of the extreme number of loans intended in order to let you tap into your value? Those choices seem endless, however they don`t need to be `too much of a good thing.` The initial step concerning selecting that appropriate equity loans choice is selecting how you require the money. The next advance alternatives are given via terms of if you desire cash in a total amount which will be ideal on behalf of immediate needs like residence improvement events and/or a vacation, or lesser, incremental withdrawals that is best on behalf of college tuition payments.

Cash-out Refinance-Lump sum

If you`re looking for a whole amount of wealth, and rates with beginning mortgages become less, the cash-out refinance is a good decision. It involves refinancing the initial mortgage and then cashing-out a whole amount of equity. In this, closure fees will be higher than those of a 2nd mortgage. However, if prices on behalf of first mortgages are lower than what you at present have, you may wind up having a `hat trick`: The lower payment amount, over-time accrual savings, plus that cash that you have to have. Having the `hat trick` such as that, your financial existence will not exist as unsteady.

property loan- Whole amount

The property loan retains a set value plus time period, and, like its other part, a home value credit source, has been considered the `second mortgage.` Since initial mortgages have to become completed `first,` in the case that a lender is forced to sell any residence because of any loan non-payment, lending establishments apply a slightly greater rate on behalf of 2nd mortgages. Though, if your primary mortgage is at a low rate, that home loans on line could become just the ticket for a lump sum money collection.

Home Value Line of Credit-Incremental withdrawals

A Home Worth Line of Credit, similar to a online home equity loans, has a larger rate of interest than an initial mortgage. It is a popular alternative on behalf of people who are looking to use the worth on behalf of recurring expenditures which spread out during time. Borrowers who need to make school costs decide on House Worth Line of Credit since those work like credit cards: You have your prior-set credit limit, that you may draw upon while you require it. You`re only assessed interest upon the sum that you utilize, and the rate is generally joined to a prime lending value, which is comparatively stable.

Here are the three main well-liked ways in order to change the worth in your home to cash. All that you are required to do will be resolve if you want a whole amount or incremental withdrawals. Once you make this decision, refer to those general guidelines listed above. This should narrow down that large world of borrowing alternatives to the home loan which meets every one of your wants.

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