• Know how the loan scams work?

A scammer will send you an email or a letter, or chances are that you might see an advertisement on the TV, radio, newspaper, magazine or online and you respond to it. These types of ads will often use the names of large, reputable and well recognized lenders to keep them on the cleaner side. They will ask you to call a third party consultant who collects all the information from you including your social security number. During this telephonic conversation, they will always sound like you have been approved for the loan.

This consultant will now fax over some documents to the applicants. This is often called the welcome packet and directs the applicant to their website for entering further information. You will be asked to enter your bank information on their website.

Now, the applicants will be asked to wire some money as advance payment or a deposit through western union or send the payment through money gram to the consultant. Be always informed that a legitimate lender will never ask for upfront money. Anyone who asks you to put money upfront is not legit and it should ring a bell on you. Those who are victimized will never receive the loan money and the scammer disappears with the application fees and the down payments made by the applicants. You end up being scammed.

These are mostly a type of advance fee frauds preying on unwary consumers, taking their hard earned money for the promise of a loan or credit and leaving them in the hot water. These type of scammers will often try to impersonate some legitimate lenders to attract the consumers and falling for their bogus offer.

They will try to collect all personal information from you and this can often lead to your identity theft. The scammers get the chance to open new credit accounts in your name and running up a high bill which you will be forced to pay when the bill comes at your doorstep.

They will try to get a check from you so that they can use it to make counterfeit checks and use it in other scams.

And above all, theses scammers want your money. They will never leave that chance to make any kind of money that you can send to them.

The scammers are always on the hunt for people with bad credit. They know it very well that these types of people can be their first prey. They need money because of their hard times and they offer big hopes of getting approved for the loan.

Know more about loan scams by reading this article:

http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.shtm

Do you need remortgages? Visit this site: http://www.badcredit-mortgages.org.uk/.

It’s not easy to have a smooth life after retirement without having returns from your investments. The social security checks are not just enough to cover the expenses after retirement. It can barely cover your food costs, shelter and utilities. It might be tough at times when you have an unexpected emergency and need extra funds. Therefore, it’s very necessary that you have your own financial planning. There are many kinds of investments that you can make and it will help you down the road to an easier life.

For beginning investors, these are some brief descriptions to familiarize themselves with different kinds of investment options:

• 401K plans : the easiest and most popular kind of investment for anyone is the 401K plan. There are many jobs who offer this kind of savings program. Money will be automatically deducted from your payroll check and it will be adding up as an investment after retirement.

• Life Insurance : this is another kind of investment that is fairly popular. After your death, your family will be benefited from your insurance policy because it will generate a steady income for them. It’s a kind of mental security for you that your loved ones will be safe and under cover after your death. It also provides a valuable tax deduction.

• Stocks : this is a unique kind of investment because it allows you to take a partial ownership in a company whose shares are available in the market. The returns through stocks are potentially bigger and it can often be termed as the right way of investing your money.

• Bonds: this is a promissory note from the government or a private company. You agree to give a certain amount of money to the company and they agree to keep it for a set number of years with a definite amount of interest on it. This can be a safe kind of investment for a first time investor because there is usually no risk of losing money.

• Mutual funds : this is a kind of investment that is based on the gains and losses of a shareholder. There is one person who manages the money of several investors and puts the money in a list of various stocks so that any kind of losses can be minimized.

• Money market funds : it’s a good short term investment. With this kind of investment, you can earn interest as an independent shareholder.

• Annuities : if you are interested in tax-deferred income, then the perfect kind of investment will be from annuities. You make an agreement with the insurer. It works to produce income for you and protect your earning potential.

• Brokered Certificates of Deposit (CDs) : this is a kind of investment where you deposit your money for a set amount of time. The good thing about it is that you can release your money at any time without having to pay a penalty fee. Life is not predictable, so this might be the right kind of investment for the common people.

• Real estate : a very tangible kind of investment is putting your money on real estate. It includes your land and anything that is permanently attached with the property. You can generate a lot of income from the fixed property by renting it or even by selling it over the time.

Most of us have always heard about this hype of making huge amount of money with real estates. If you are really interested on this, the difficult part is to know how to separate the hype from the reality. Perhaps, you might have heard about making money from buying property that are foreclosed or repossessed by the bank. You think of buying it for a lower amount and then wish to sell it at a higher profit. The question comes whether this is a feasible way of making money in the real estate market? Yes, absolutely. It’s a nice way to get started.

Never buy this idea of going into a business of buying a foreclosed property with the thought that you can put a coat of paint on a house and sell it at a high profit. Think of the fact that when a house is going through a foreclosure, the reason behind it would be that the owner of the house was not able to keep up with the mortgage payments. It might also mean that the owner could not meet up with the costs of home repairs and regular maintenance. Before you buy a foreclosed home, check the condition of the property and think whether its worth to put your money on it. You may be able to buy a foreclosed property at a very low price but consider some other important facts like the maintenance costs when you are trying to sell, repair costs, and the neighborhood the house is in. What seems to be a great deal in the beginning might turn out to nothing more than a money pit after some time.

The other thing that you might want to consider is whether you should sign up for the services that will keep you updated with the list of foreclosures on a regular basis, or you want to do the research by yourself only. A reputable company that offers you the list of foreclosed properties will save you enough time but they are not going to offer such services for free. “Reputable” is the keyword here. There are several online advertisements, promotions in the newspaper or even on the television that will say that you will become rich through their foreclosure programs or lists, but the unfortunate fact is many of these companies do not deliver what they promise. It takes a lot of time, patience and tremendous amount of investigation to find a reputable company. Most of the time, you will find out that the list provided by these companies are outdated and after giving a considerable thought, you will realize that you could have found these foreclosed properties on your own in a much more timely, and less expensive, manner.

The best thing will be to call your local banks or mortgage companies and ask if they have the list of their foreclosures. You may find that everyone will not be willing to offer you the list because they don’t know anything about you. But if you present yourself in a professional manner, they will be happy to work with you.

How about making money from the hobby that you love the most? Whether you knit, or write, or do photography, or do gardening, you can make money from anything that you love to do. I believe earning money from a hobby is a nice way to get paid because you will love to do it anyway. I am writing this article to help you explore how to turn a hobby into a source of side income. Here are some ground rules for making money:

• Be focused on something that you love the most

If you are passionate about something, there’s nothing wrong to pursue it. Don’t choose a hobby thinking that it will allow you to make money because in that case there won’t be any passion left towards the hobby. Let the side income resulting from your hobby be a secondary factor.

I am fond of writing. I was struggling with debt in the past. I started reading personal finance books and then started documenting everything in my website. This way I have a good website and it helps in earning money. This is a side income but the primary thing was learning when I was in debt and putting it on the website. I don’t mind the revenue that is generated through this website. Keep your hobby as fun. Don’t let it become a chore.

• Be creative

If you are not sure how to get started and decide about a hobby that will help in generating money, come outside the nutshell. Think about the skills that you have which others don’t? Go through the definition of the term “hobby” broadly. There is something in you which you only can do it and others can’t. And people will be willing to pay you for the services that you can offer.

I have a friend who loves to cook. She turned this hobby into a part-time job as a personal chef. She prepares meals when she gets orders in bulk. She is always enthusiastic to spend a few hours of her day preparing a week long menu for people who are ready to pay her handsome amount for her hard work and time devoted.

There’s another friend who loves to travel a lot. One day he realized that he could subsidize his journeys by writing about the places he visited, and by taking photographs. Now, he is often going to different places on all expense paid vacations. He is into something that he will do anyhow and has never to spend a dime.

• Don’t force it

Your hobby is not going to make you rich in a day. Or in some cases, it won’t pay you enough that you decide to quit your day job. So don’t force yourself into something that can become a strain on you after some time.

• Don’t underestimate your ability

Its always easy to discount your abilities. When you have a deep love for something, your prolonged experience can make you more knowledgeable and skilled that you somehow don’t appreciate. Start doing something on a small scale. Then, there is enough time to make it large. Don’t sell yourself short.

• Market yourself

This can be quite tough at times. You need to have customers to be actually able to earn. But like I said earlier, most people have a tendency to underestimate their abilities, and because of this, they somehow can not do self-promotion. There is no shame if you are talking to your friends and discussing about your money making hobby with your friends, family or neighbors. You don’t have to force yourself to make a point. Just find the right time to say about your hobby and insert it in your conversation. If you have decided to turn your woodworking hobby into cash, mention it to anyone who is interested to buy a book shelf or anything similar to that. You will find a way to earn from your hobby.

Marketing can be subtle, but it’s an absolute necessity if you hope to earn money from your hobby. People need to know you’re available before they can hire you.

• Hone your skill

Practice, practice, practice. The more time and energy you’re willing to devote to your hobby, you are better trained. And there is possibility of making more money. For example, if you are nurturing into photography and are willing to make hundred images a day, you can improve your skills quickly, because you will find a way to learn about composition and figuring out the perfect image. Chances are that you will become a professional photographer someday or even if you don’t, you will actually be able to sell images to stock photo agencies, or enter (and win) photography contests.

• Conclusion

Some people are born with natural talents and the rest of us have to work hard. Always remember the fact that whether you make money from your hobby or not, enjoy the time you spend with it. Hobbies really do a lot in making life more fun and meaningful.

According to my research done over the past few years, I have realized that over 5000 people are searching for some kind of credit card every day. They usually need a credit card because of their bad credit history or a need in their business. I have asked some people if getting a new credit card will be a good idea when someone is already going through bad credit. Most people are aware of the answer and this will certainly be “Hell no!”

These credit cards are often the main reason of people having bad credit. If your personal finance is already screwed up and you are thinking that credit card will be a solution, you are nowhere thinking right. Too many people think that they will get back in control if they can get one more card and with this, they will balance their finance. Then, they will turn things around, and everything will be okay. But the fact is that it is never going to be okay because the underlying causes of the problem still exist and until they are corrected.

Few people are actually able to track their finance properly. They have a little clue about where their money is going after doing some major expenses and in the end, they realize they have nothing left. It will be a good idea for people who are not financial savvy to use budgets, keep a track of their expenses, and go over the billing statements. They seem to be blindsided and wake up in the morning in shock having a little hope of reversing the situation. If you can relate with the same situation here, know that you are not alone. Come out of the bad habits if you have one of these – being too social, gambling, or myriad other causes of excessive spending.

You can use a credit card to reestablish a good credit, but it’s important that you have done all the ground work first. Keep a control on your spending. If you are still spending more than you make, getting a new credit is the last thing that you must be doing in this case. Pay off any outstanding debts that you have on your existing credit cards. If you are already using some cards, don’t get a new one. Just pay off all the dues and keep them away from you. Keep one card aside just for any emergency use and make sure that you pay it in full within the due date. Keep the accounts open, because an old account with availability of more credit will help improve your credit scores over the time. Your accounts have to be in good standing and the scores will go up in the future. Maxed out, or close to the limit cards will detract from your credit score.

Another case when you should be using a new credit card is when you have lost all your previous cards or they are already closed. In such a situation, you will need to have some type of credit card account to begin a successful track record of making timely payments. FICO scores system will look at two important factors of your credit. First, how much credit you have, and your credit profile. You must have a balanced mix of credit types, such as personal loans, revolving credit, and mortgages.

Home owners can get the loans at the cheapest interest rates against their residential property. These loan plans can often generate more loan amount at lower interest rates.

You can get such a type of loan if you are willing to pledge your property as security to the bank. This will assure them that in case if you fail to repay the loan in time, they can take away your home to recover the cost of the loan. Hence before deciding, it is important that you ensure that you will be able to afford the loan and comfortably make the repayment.

You will find lenders who will sanction the full amount of equity present in your residential property as the loan amount. If you opt for a secured loan for a longer period, the installments will be much smaller and affordable, but the only disadvantage is the quantum of interest will become larger. Your number of repayments will be more in number in comparison to what you have had if the loan is for a shorter time period. You have to make a choice according to your needs and requirements, and choose the right kind of lender that caters to your requisites. You can use these kinds of loans for various purposes like home improvement, wedding, holiday or even for debt consolidation. They are largely preferred over unsecured loans because of the lower interest rates.

Interest rates vary with different kinds of secured loans. If the rate of interest of the loan plan is fixed, you will have steady monthly payments and you will be benefited when there is an unexpected rise in the interest rate in future. On the other hand, if the interest rate is variable and keeps on changing according to the market trend, you will benefit when the rates have gone down by having lower repayments. You can also opt to refinance the loan if you have taken the loan at a fixed rate and the market is going downward.

Another advantage of the secured loans is that you can tackle a bad credit situation. A borrower with a bad credit history has to make a little more extra efforts, by doing some more documentation for getting the loan. Such people have to pay higher interest rates on the secured loan than someone whose scores are good. Chose your loan plan from the variety of options available online. Take free online quotes and decide the best deal in your situation. Know other details like the rates of interests – fixed or variable, repayment period, down payment etc. there are many lenders who are ready to offer these kinds of loans to the freshly employed or self employed people. However the common practice is to offer loans to those people who have been in receipt of regular income for the last two years.

Mortgage loan is very important for all of us. Sometimes it is necessary to take remortgages also? If you need any help related to mortgage then you can visit this site: http://www.badcredit-mortgages.org.uk/.

Every year thousands of people make big purchases on their homes. These new homes come equipped with all the latest amenities like granite counters, new appliances, the fresh smell of paint and new carpet. Borrowers are very excited to move to their new furnished home. It’s that home for which they have worked so hard to own. Later, facts start coming after the second year of their living on that home. The property tax comes due. Follow this simple illustration below. I and my wife together purchased a home for $200,000 in July of 2007.

Since the home was new, the taxes were on the land only since it’s an unimproved property. The tax was calculated by the cost of the land times three percent or $35,000 x 3% making the total $1050 per year or eighty-seven dollars per month. Everything is going fine until the taxes hit in the month of November 2008. Now, the new taxes will be calculated on the basis of improved property times three percent or $200,000 x 3% making the total new tax bill $6000 dollars per year or $500 dollars per month. Based on the old escrow account, I would have saved eighty-seven dollars per month times twelve months in the year. I accumulated $1050.00 but owe $6000. I am almost 5000.00 short in the escrow account. In case, I can’t come up with that money, the mortgage company will gladly pay it for me.

Now, since the mortgage company has paid my taxes, they will increase the mortgage payments by $500.00 per month to recoup the money they paid the taxes with and adjust the payment by $413.00 dollars per month to set the new escrow account up correctly. At the end, I realize that my mortgage payments have jumped up by almost $1000. I may not be in a situation to afford the new payment. The bank will foreclose the property and I will have to move to another apartment. My credit is ruined and the dream is turned over to a hard terrible reality.

Now, the question in your mind that comes first is to have a solution for a situation like this. First, it’s very important that you deal with a reputable mortgage lender. He will give you the time to explain how to set up the escrow account correctly. Anytime, when a new deal is finalized, the lender has the option of working with the borrower and set up the escrow account in such a manner so that you don’t fall into a shortage. They can set it up on the basis of improved or unimproved taxes. It’s always a good decision to have more than sufficient in your escrow account than to run short of the required amount. Before the escrow account shapes up a big problem, it is better to have a solution always ready and it can only happen when you have the required funds available. At the end you must question yourself one thing. Can you afford for a $1000.00 per month jump in your mortgage payment?