Wednesday, July 31, 2013
Tuesday, July 30, 2013
Surveys have shown that on average, students attending US colleges graduate with between $30,000 and $50,000 debt on their shoulders. So, in reality, their careers begin, not with progress in mind, but simply with clearing college debts. This can prove crippling in the early years of working life, when salaries are at their lowest.
But through a consolidation program, the balances on numerous student loans can be paid off in one go, and replaced by a single loan that boasts better terms and greater affordability. As always, there are some factors to consider before signing up to one.
How Consolidation Programs Work
Student loan consolidation programs are highly effective in replacing difficult debt terms with much better ones. On the face of it, it may seem that replacing multiple loans with one loan is hardly progressive, but with the right terms, it can save hundreds of dollars in payments every year.
Most students take on at least 5 loans while attending college, but as well as the individual balances owed, this also means 5 individual interest rates and repayment schedules. This arrangement means that costs are much higher than they need to be, and only complicates the task of clearing college debts.
But taking on one loan makes everything simple. One repayment date means less chance of repayments being missed, while one interest rate means interest is lower overall. And when student loans are replaced by a long-term consolidation loan, the monthly repayment sum is much lower.
How the Program Benefits Students
Other than lower interest, lower monthly repayments, and less pressure, a student loan consolidation program has a number of long and short-term benefits. The key is the fact that the college debt is marked down as having been repaid in full, even if it has been replaced by a consolidation loan.
Once the task of clearing college debts is accomplished, the credit score of the student is increased in their credit record. And with higher credit scores comes an entitlement to lower interest rates when applying for a loan.
Even while repaying the consolidation loan, there is more cash freed up to meet other bills and debts with. For example, a $50,000 debt may need combined monthly student loan repayments of $850 over 60 months; but over 120 months, payment on a single loan of the same sum fall to $420.
Sealing an Affordable Option
The whole idea of taking on a student loan consolidation program is that a crippling financial situation can be alleviated quickly. But real benefit can only be enjoyed when the right terms are secured. This basically translates to getting the most affordable option.
To accomplish this, there are some simple factors to look out for. The most obvious is the term of the consolidation loan, with the maximum term available for graduates being 30 years. This makes any debt affordable, though bear in mind that clearing college debts in this way means much more is paid in interest too.
But securing a competitive interest rate is another consideration. Searching online can reap good options, with comparison sites making that job all the easier. Just remember that the student loans being cleared are the priority, and reducing its monthly impact is the key to affordability.
Monday, July 29, 2013
Sunday, July 28, 2013
There is no doubt that getting a loan to clear existing debts is effective, but it is as important to get good terms on these loans as it is to get good terms on a normal loan. The challenge then is to find a lender offering low interest consolidation programs.
This is where the effort put into searching for the right debt consolidation loan company can pay dividends. But the starting point for all bad credit borrowers is to ensure they know where they stand before beginning the search for any loan.
How Consolidation Loans Work
The workings of consolidation may be a little confusing, but in fact the concept is very straightforward. Basically, all of the various debts are clumped together into a single sum, and bought out with a single loan. Therefore, the advantage of a debt consolidation loan for bad credit borrowers is principally that it creates a chance to restructure debts completely.
The issue with having several individual debts is that there are separate repayment sums with different interest rates due on different repayment dates. It can mean the pressure is practically constant. However, with a single loan the array of concerns is kept under much better control.
What is more, a low interest consolidation program means that the interest paid each month is much lower than the total combined interest paid for the 4, 5 or 6 individual loans. And, if the debt consolidation loan term is long enough, the size of the repayments can fall to as much as 50% of the combined total of the original repayments.
Check Your Credit Status
When starting to seek a company that grants debt consolidation loans for bad credit borrowers, the first thing to do is find out your actual credit situations This means getting a copy of your credit report and looking at the official score, and the reasons it was calculated.
There is always the chance that a score is inaccurate, with recent loan repayments perhaps not being noted, and sometimes even the full clearance of a debt. It is important that, should anything seem to be missed out, that the score is reviewed. Addressing the score can help in securing a low interest consolidation program.
If the score is accurate, then the information is valuable anyway since it is the key to assessing the terms of the debt consolidation loan. Remember, any consolidation company will look to buy out your debts completely and then receive repayments back, so the interest charged is important too.
Factors To Consider
It is not always necessary to find a company, with some lenders willing to provide debt consolidation loans for bad credit management purposes. However, this can depend greatly on the sum required, with large loans harder to secure from independent lenders.
Of course, as with all loans, providing some security can all but make approval certain. This can mean providing collateral, such as car or home equity. However, it is better to find a cosigner – someone that guarantees that monthly repayments will be made. Getting a low interest consolidation program is therefore easier.
However, when considering a lender, make sure they satisfy the highest standards set by the Better Business Bureau. Check their grade on the BBB website, and only choose an A+ lender for a debt consolidation loan.
Friday, July 26, 2013
The Risks of A Long Term Disability
Let us first define what a "fee for service professional" truly is. There are thousands of possible occupations that could use this tag, the important part for this article is that you are clearly able to distinguish between a professional who generates income based upon his or her ability to perform a service, and somebody who is going to earn a salary for the year simply by being employed. People who have occupations that result in income only when he or she performs the duties of their occupation are considered fee for service professionals. Physicians only get paid after they have seen patients and treated them, lawyers get paid for working with clients on all sorts of legal matters, realtors get paid only when they sell a home, and consultants get paid for working with their clients. The systemic problem we have is that so many professionals don't realize just how vulnerable their financial worlds are. One long term disability could wipe out all of their savings in a short period of time, and most professionals don't realize that without them going to work their is no further source of income.
Some Professionals Understand
It is not entirely fair to say that all fee for service professionals don't understand how vulnerable they are. While some occupations seem to walk around with blinders on like consultants, salesman, and attorneys, physicians and nurses all understand just how vulnerable they are. There is a reason physicians buy disability insurance more than any other occupation, they see how people become disabled every day. While a computer consultant may think that if they can think and type that they can work, and physician knows that is just not true. Disabilities are most often illness claims, not accident claims. Many professions think of becoming disabled from a car accident or other accident, reality is that most claims come from illnesses like cancer, diabetes, back problems, heart disease, and hundreds of other diseases. Every professional needs to know that a disease does not care what you do for a living, and will most likely disable everybody in the same way, regardless of what you do for a living. I don't know any computer engineers that are still able to generate new business, and perform consulting services while dealing with something like ALS, Parkinsons, or cancer.
What to Look For as a Professional
There are a decent amount of quality disability insurance policies on the market today. Most of the good policies are Non-Cancellable and Guaranteed Renewable, and I believe you should also own a pure own-occupation definition of total disability. The real key, in my honest opinion, is the residual disability benefits offered to you. You need a disability insurance policy that has a very long recovery benefit, and most of the major carriers differ greatly when it comes to the recovery benefit. While many carriers have Non-Can benefits, and a few good one's also offer a pure own-occupation definition of total disability, there are only a couple that have a recovery benefit for the entire benefit period. Most disability insurance companies have to specify their recovery benefit period in the contract. Some will offer 6 months, some will go out to 2 years, but the best have a residual disability benefit that allows for an unlimited recovery benefit.
Ask Yourself One Question
If you were totally disabled for a period of one year, and one day you were miraculously recovered back to work full time, how long would it take you to achieve your pre-disability earnings level? Many fee for service professionals, when faced with this question, realize it would be a matter of rebuilding their entire business again. Clients and patients typically cannot wait for you to recover from your disability, and end up moving on to your competition while you are disabled. It may have taken you a decade to achieve the level of earnings you had before you were disabled, and it may be another decade before you get back to that level again. Many times you end up starting over when recovering from a long term disability, or even worse you may never financially recover. This is the exact reason why fee for service professionals need to have an individual disability insurance policy that has an unlimited recovery benefit. An unlimited recovery benefit will allow this person to receive monthly disability payments every month while they set back to rebuild their business.
Scary Thing About Some Policies
The scary thing about some disability insurance policies is that they require a loss of time or duties in order to pay any residual or partial disability benefits. Make absolutely sure that the disability insurance policy you end up purchasing does not require a loss of time or duties in order to pay a recovery benefit, or residual disability benefit. If the policy requires a loss of time or duties, when you are back to work full time the disability benefit would be over. As we just reviewed, it may be years until you financially recover, so make sure to buy a disability insurance policy that will pay you until you financially recover with an unlimited recovery benefit, not just until you physically recovery.
Thursday, July 25, 2013
Wednesday, July 24, 2013
It is difficult to avoid spending a little too much via our credit cards, so lenders are willing to understand the situation when it comes to applying for a new loan. In fact, consolidation for clearing credit cards is recognized as arguably the best move a person can make.
And because the purpose of this loan is to help the borrower escape their financial trap, getting debt consolidation loans with bad credit is not a great problem at all. But what are the factors that should be considered, and what really are the chances of getting approved?
Why Consolidation Works
Understanding why a debt consolidation loan is such an effective method of clearing credit card debt is key to selecting the right consolidation program. The procedure is not complex, with the balances from each of the cards involved paid off with a single loan.
This means the debt is replaced rather than completely removed, but it also means that savings are made. This is because by selecting consolidation for clearing credit cards a single interest rate is charged on the single loan, not 5 or 6 individual high rates charged on 5 or 6 cards.
With the cards paid off, the credit rating of the borrower is immediately increased. This means the terms of any future loans are improved, so getting debt consolidation loans with bad credit has long-term advantages too.
Where To Source The Loan
There are two loan source options to consider when seeking a debt consolidation loan. The first is to apply to a general lender, while the second is to approach a debt consolidation company. Both have their positives and their negatives, but the right choice largely depends on your particular financial situation.
For example, a loan from a general lender is independently secured and carries with it all of the responsibility any other loan agreement has. Traditional lenders charge higher interest rates, while online lenders usually charge lower interest and grant a longer repayment term. The latter is best when using consolidation for clearing credit cards, which already have high interest applied to the sum owed.
However, when applying for a debt consolidation loans with bad credit, there are some limitations. If the debt is very large, then there may be some problem in securing the full amount required. This is where approaching a consolidation company is best.
Approaching a Consolidation Company
Consolidation companies are experts in their field, and this is why they are usually the best option when your credit card debt is very high. When the sum in question is above $50,000, for example, it can be a real struggle to restructure finances by yourself. But the company offers more than simply a debt consolidation loan.
Usually, they also negotiate with the card companies to reach a settlement. This can translate to real savings, but whatever balance is agreed is then bought out by the company. The next step is that the company takes control of your finances, taking monthly repayments to ensure they get their money back – at a profit.
The positive aspect of this arrangement is that the borrower must adhere to strict limits, which ensures the debt is cleared within a set period. Using consolidation for clearing credit cards is ideal, but the regimen these companies apply guarantees that the debt consolidation loan does not end up causing other problems.
Tuesday, July 23, 2013
Sunday, July 21, 2013
Today successful wealth managers need more than ever to understand the importance of investing wisely, understanding and managing risk. Anthony Comorat builds portfolios designed to match risk to client investment tolerances. He has years of experience acting as a portfolio manager. But what exactly does a portfolio manager do? Portfolio management is making decisions about investment mix and policy. Investment managers make investment decisions based on investment objectives, which determines asset allocation. For individuals and institutions it is more important than ever to assess investment risk against potential growth and expected returns.
Anthony Comorat meets with clients quarterly to examine the performance of clients' investment portfolios. He reexamines his clients objectives and adjusts investment and finance suggestions from there. This form of portfolio management places Anthony Comorat into the category of active management. There are two forms: active and passive. Being an active manager, Anthony Comorat manages a portfolio through decisions based on market research that attempts to determine if the existing consensus view is correct.
Some people want to make their own investment decisions, and Anthony Comorat is the type of professional to respect that do-it-yourself spirit, but ultimately, he would recommend people seek the advice of experts who know the ins and outs of investing. With years of experience, Anthony Comorat knows people have a lot to lose.
Individuals who want to invest wisely need the professional experience and in-sight of portfolio managers. They present their clients with appropriate investment plans taking into account the need for income, family budget, age, and risk-taking abilities, among other investment policy concerns. Anthony Comorat also has experience working with fixed-income and knows high return investment also come with high risk. That is why portfolio managers work with individual clients; to minimize the risks involved in investing in order to make profits whether aggressive or conservative.
When looking for a portfolio manager, it is important that the manager understand the financial goals of each individual client. Anthony Comorat looks at the objective of each client and makes customized investment decisions from there. Anthony Comorat counsels clients on investment plans and decision designed to generate the greatest potential return while attempting to minimize risk in light of investment goals and objectives.