We might think for a while that the worst of financial crisis is over, but this is not the case. There are millions of people who are still struggling to meet their commitments and have still not recovered. Various markets are being encouraged with many incentives to assist these people in need.

The property market is no different and U.S. President Barack Obama has introduced a new program for assisting people in need. Its called Home Affordable Modification Program (HAMP). This program will help people in paying their mortgages quite easily. It will reduce the monthly payments which will be a huge relief for the homeowners.

With the help of this program, homeowners monthly payments will go down to 31% of their pre-tax income, even less in few cases. This modification plan will only be accepted if the modification equals net more value than foreclosure would.

In order to qualify for this program, you have to meet 4 main criteria:

• The residence on which you want your monthly payments to be modified should be a primary one.
• Your monthly mortgage payments should be more than 31% of your pre-tax monthly income.
• Your loan amount cannot exceed $729,750
• You have to prove that you cannot afford the current monthly repayment plan.

There is one more benefit of this program. Homeowners who get approved for this program are eligible for $5000 credit to reduce principal debt on their very first mortgage. But there is one criteria here that has to be met. You should not miss even a single payment and pay it in a timely manner for five years.

Once you meet the above requirements, there’s a government plan called monetary stability plan in which the mortgage providers have to necessarily participate if they receive funds from the government.

This move is not something that the government has taken out of kindness. In fact, this is a positive economic step taken with the motive of stimulating the economy and leading to expansion.

All those who are having a hard time in making their mortgage payments and are unable to figure out on how to solve the problem, look into this program introduced by the government. Otherwise, the lenders and the housing market will see huge losses again.

More information about Home Affordable Modification Program (HAMP) at:  http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx

Millions of people already have their own ISA, but if you are completely clueless when it comes to stocks and shares ISAs, don’t worry. This guide offers you a beginner’s introduction to the subject to give you an overview of what they are and some key points you need to know if you are thinking of investing.

• What is a stocks and shares ISA?

First of all, let’s look at what a stocks and shares ISA is. Essentially, it is a type of investment account that invests the money you put into it in the stock market. Depending on the specific account you get, it might invest in different types of companies.

Then, if the shares your money is invested in grows, you will earn dividends. These dividends can then be reinvested or you might be able to withdraw them, depending on the specific account you have.

• What is the annual savings limit?

One really important point about the stocks and shares ISA is that there is an annual limit as to how much you can put into your account. For the current tax year (2012/13), you can save up to £11280 in your investment ISA. Alternatively, you can also save up to have of that amount in a cash ISA. It’s also worth remembering that you can only open one new stocks and shares ISA per tax year, and even though you can hold multiple ISAs, the £11280 limit is the overall limit for all of your ISAs.

• What are the risks?

Now let’s have a look at the risks of the stocks and shares ISA. As we have already seen, it is a type of investment in the stock market. This means that as well as the potential to earn dividends, your money can also go down as well as up. This will depend on the performance of the stock market. You are usually recommended to save for the long term with a stocks and shares ISA to give your money the best chance of growing.

• What are the benefits?

One big benefit of this type of account is that it is tax-free. This means that if you earn dividends on your money, you won’t have to pay any tax on them. This is one of the main reasons these ISAs are so popular with investors.

Also, if you choose the best stocks and shares ISA you can find, the fund will be very careful about where they invest your money to give it the best possible chance of growth. The flexibility of being able to save part of your annual allowance in the form of cash is another benefit that appeals to many people.

• How do I choose an account?

When you are trying to choose the best stocks and shares ISA for your needs, it is important to do some research to see what is out there and the kind of account that might work for you. As well as past performance of the fund, look at things like the terms and conditions, the fees attached, how easy it is to access your money and the reputation of the provider to ensure that your investment has the best chance of success.

Use of prepaid debit cards continues to increase, reaffirming both continued personal finance troubles for many Americans as well as general distaste for banks. New stats reported by Javelin Strategy & Research show that the percentage of consumers who purchased prepaid cards rose from 11% to 13% between 2010 and 2011. The amount of cash put on these cards is expected to soar north of $200 billion next year, up from $28.6 billion in 2009.

Analysts say this is the result of stingier lending habits by banks. The days of credit card giveaways and free-for-alls is over, replaced by hesitant banking executives worried by defaulting trends in the American economy. Banks are also responding to legislation passed during the financial crises of recent years that puts heavy limits on fees that can be charged on credit card holders.

The results have been less standard bank accounts, less conventional cards, and more prepaid cards. Some analysts see nothing less than a financial revolution on the way that will entail non-credit cards, such as the ones you can get with Green Dot Credit Cards – Credit.com.

Consumers have been surprisingly tolerant of the prepaid card fees, willing to trade in a few bucks in order to have control over their finances—or, a better way to say it might be ‘not having the ability to lose control.’ With the prepaid cards, consumers load a certain amount of money onto the card and can then essentially use it like a checking account or credit card, only without the fear of overdraft or piling on exorbitant costs during a spending spree. Reloading more money onto the cards usually entails a fee of $4 or $5 dollars, though in some cases that fee can be bypassed or minimized by rewards programs.

Some of these services also offer budget apps and other tools and savings accounts. Many of the funds on the cards can be managed from grocery store kiosks and online.

Ultimately, what this trend shows is that people are willing to spend a little bit of extra money in order to ensure that they don’t spend too much. Major banks’ overdraft fees in particular have come under scrutiny, with some account holders finding they’ve accumulated multiple $35 overdraft fees in one day without ever receiving an alert. One can easily see why banks—who for so many years have preyed on interest rates, financial irresponsibility and debt—might be a little worried.

It’s a sad fact of life that many businesses – particularly small businesses – don’t reach their first birthday and fewer still reach their third birthday.

If you have owned a business (big or small) that has had at its core a provision of professional skill or advice then you will probably have had Professional Business Indemnity Insurance (alongside other business insurance types like Employers’ Liability Insurance and Public Liability Insurance). That insurance would have covered you against claims brought by clients for negligence or errors that led to them suffering financial loss, and any related legal fees.

That was, of course, the responsible thing to do and might well have saved you a fortune in legal fees and compensation pay outs – if any of your clients had sued whilst you were in business.

But what happens after you close your business, or retire? Clients can normally claim for up to six years after they have had work completed for them (even longer if they can persuade a judge that the six year time limitation on claims should be waived). That could mean that you could receive a letter informing you that your former client is suing you any time up to six years after your business has finished (or perhaps even later than that).

And if you have no business assets to be able to pay such a claim, how will you afford the legal fees, let alone the compensation? Professional Indemnity Insurance is only available on a ‘claims made’ basis – so they only pay out if a claim is made whilst you hold the policy and not afterwards.

The answer is to swap your Professional Liability Insurance for Run-Off Cover before you close your business. Run-Off Cover is less expensive than Professional Liability Insurance, month-by-month, and will cover you for any claims that stem from whilst you were in business.

If you think you need Run-Off Cover, you’ll need it for at least six years, or until you think that there is little or no risk that a past client will have cause to sue you. That should cover you for claims made against you for breach of contract or any personal injury incurred.

However, some industries (notably Will-Writing), where mistakes might not reasonably be discovered for many years, could require Run-Off Cover for an indefinite period. An alternative would be to sell your bank of Wills to another Will-Writer on the basis that they assume all liability (and insure against) all claims arising from past clients.

If you decide you need Run-Off Cover it’s always worth shopping around and getting a few quotes – but always check the small-print to make sure that your business will be protected and that the circumstances that might apply to your business are not excluded.

A single right answer cannot be provided to this question since multiple variables affect it based on the type of debt and savings options toppled with the person’s needs. The majority of people would suggest that debt should be paid off first, but it is not always so. Financial and long term goals must be taken into account to know if it’s more important to pay off debt over saving money.

The financial aspect will be discussed, targeted towards investment’s returns. Bigger returns can be obtained by saving money in high yield accounts instead of paying off debts. For example, if the owed amount’s interest rate is less than the savings account rates, saving will make more money. On the other hand, paying debt first, if the interest rate obtained from a savings account is much less than the rate for a debt, makes more money. Furthermore, debt repayment is simply paying back the principal amount with interest to prevent owing even more in the next billing cycle. Interest rates are the key to know which option to choose. Depending on the type of debt, interests can range from 3.5% for mortgages to hundreds of percentile points for fast loans. In addition, savings accounts average a return nationwide of less than 7%.

However, some financial experts say that savings should always come first. This is based on the idea that if an emergency occurs, money will be readily available. This is not true for people that pay debt without saving anything. In emergenciesthis type of person would have to resort to acquire loans or use a credit card, which compounds for more debt, with usually higher rates since the funds are needed in a hurry. This scenario will upset the entire budget that was set to manage debt.

All financial advisers do agree on onetopic, accumulate no more debt. Both scenarios, either savings or debt payment, prove to be better for the economic well being if followed. For instance, savings pay for urgent expenses such as car repairs and medical bills. Moreover, debt payment provides more free money on a monthly basis on hand to cover such emergencies.

In the end, find a balance between the monthly amounts set for savings and debt payments. The best method would be to split money evenly between them. For example, if there is a $500 extra per month, $250 could be saved and $250 could be set to lower debt. Priorities need to be set in order to make the right decision and choose the correct path for your financial well being.

This article is provided courtesy of Credit Season, a consumer finance website providing information and tools on personal loans for bad credit and other personal credit services.