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Archive for April, 2010

Free Fivers Go Unclaimed By Cynical Brits

A new stunt designed to illustrate the extent of many Briton’s unwillingness to improve their financial situation has shown very few consumers on the streets of London and Manchester were willing to capitalise on the offer of a free five pound note.

Price comparison service moneysupermarket organised the campaign to demonstrate the financial inertia that is evident among many Britons. Wandering the streets of the two cities yesterday the group encountered around 1800 consumers while donning a sandwich board offering the free notes. However despite this prominent display of free financial assistance just 28 passersby took the time to take up the offer.

The group asserted that even when people did claim their prize interest remained unsparked among many onlookers.

“This exercise reveals a fundamental inertia which is stopping people from making sensible financial decisions … This was a completely genuine no strings attached offer. People simply had to approach the sandwich board wearer and ask for a fiver. If more than 98 per cent of the people who passed by couldn’t be bothered to do that it raises some interesting questions about what needs to be done to persuade people to make an effort to improve their financial position” said Tim Moss head of loans and debt at moneysupermarket.

Males were seen to be more intrepid in making a claim for the free cash with all but seven of those who took the reward in Manchester said to be men. This finding was backed up by research carried out by the group which showed that while 41 per cent of men suggested they would not claim the money if it was on offer nearly twothirds of women 64 per cent said they would decline.

When asked the reasons behind the decision not to take up the free money six in ten said cynicism would hold them back from approaching the smallscale philanthropist. Meanwhile one in ten said they would be too embarrassed while three per cent said they did not think five pounds was a high enough sum for it to be worth the effort.

Offering advice to Britons who seem unwilling to improve their financial situation the group suggests that credit ratings should “be protected like the crown jewels”. It encourages consumers to make sure electoral roll details are correct and ensure that payments on items such as personal loans and credit cards are carried out on time. For those who have had their access to loans restricted due to a poor credit history taking out a bad credit loan may be of assistance. In choosing this sort of lending product people may find they are able to meet the rising cost of living more easily.

Getting a current account that pays more than five per cent in interest is also recommended as a prudent course of action for many Britons with the group suggesting that the majority of consumers have an account that pays out 0.1 per cent or less. Obtaining a credit card which offers zero per cent on purchases for at least nine months is also suggested. However for those who have found it increasingly difficult to obtain backing due to an unfavourable financial history taking out a bad credit loan may prove useful.

Taking out an adverse credit loan may also be an advisable course of action for a growing number of people after research demonstrated that average loan rates are continuing to rise despite efforts to cut interest. According to findings from MoneyExpert released in May the average rate for a loan of between 5000 and 7000 pounds has increased by an average of one per cent in the past six months.

About the writer:  Steve Smith writes for the 1 Stop Finance Shop where you can apply online for debt consolidation loans. We specialise in all sorts of personal loans and secured loans with online application.

8020 Combined Mortgage And Second Mortgage?

You may have read about the benefits of 80/20 Loans but you may not fully understand how they work. The fact that these loans are actually a combination of loans brings a lot of confusion to the issue and can scare applicants away from an otherwise excellent opportunity of financing that can save you a lot of money.

home loans are combined loans which provide the necessary funds to purchase a property and though at the beginning they may seem more expensive due to higher initial monthly payments in the long run they will make you save a lot of money due to the lack of Private Insurance Mortgage Payments that they imply.

First: A Few Concepts

80/20 Mortgage loans are actually two different loans combined into a single financial product. In order to understand how this work you need to have an idea about several loan concepts including: Mortgage Loan Home Equity Loan Private Mortgage Insurance Down Payment Collateral etc.

It is not the purpose of this article to explain all the above concepts thoroughly but we will give a clear idea of them so you can understand how 80/20 mortgage loans work and how you can take advantage of these loans in order to avoid having to pay the private mortgage insurance premium monthly payments and thus save thousands of dollars.

With a mortgage loan the real estate property guarantees the repayment of the loan. In the event of default the lender has the legal right to repossess the property and force its sell in order to claim his money. Home equity loans or second mortgages use the same property as collateral too. But they only use the remaining value of the property that exceeds the amount of debt that is being secured on the mortgage loan. This amount is known as equity.

When a mortgage loan finances more than 80 of the purchase or market value of a property an insurance is required in order to obtain approval. This insurance is called private mortgage insurance and is meant to protect the lender in the event of the borrower defaulting on the loan. The premium of these insurances is rather high and it is included in the monthly payments of the loan that are paid by the borrower.

80/20 Mortgage Loans: The Solution

The only way of avoiding payment of Private Mortgage Insurance is to put money down when purchasing the property. This implies requesting less than 80 of the propertys value. Thus a down payment of at least 20 of the propertys value can free you from having to face the private mortgage insurance expensive payments every month.

80/20 Mortgage loans come to solve this problem. These loans are actually a combination of financial products and not a single loan. You get a mortgage loan with an amount equivalent to 80 of the propertys value and a home equity loan that covers for the rest of the money needed to purchase the property. With this procedure you get all the money you need in order to buy the asset without having to pay for the private insurance mortgage premium.

About the writer:  Amanda Hash is an expert financial consultant who specializes in helping people to recover their credit and get approved for home loans car loans personal unsecured loans unsecured credit cards refinance home loans consolidation loans student loans and other financial products. If you want to learn more on how to get approved for Unsecured Bad Credit Loans and Loans After Bankruptcy just visit http://www.yourloanservices.com/ and you’ll find all the information you need.

Making Money Is Easy When Youre Taking Action

One of the most common complaints uttered by brand new real estate investors is Im not making any moneyand I dont know why! If this describes you keep reading because developed an easytouse system to all but guarantee that you will make money in this industry.

Keep Score One of the most important things you can do to help guarantee that youll make money is to keep score. On a daily basis log all time spent on real estate investing activities. Make sure to separate moneymaking and nonmoneymaking activities. Moneymaking activities are things like writing offers negotiating closing deals dealing with contractors etc.

Nonmoneymaking activities are things that wont earn you immediate money: Reading articles studying courses etc. While nonmoneymaking activities are important you have to jump in the game and actually play ball. REIA meetings planning and education are all important to your success but they are the equivalent of suiting up for a game and showing up at the ball park. You cant score unless you actually step up to the plate and take a swing.

Keep Moving One of the realities of real estate investing is that you wont always get an immediate answer to offers written. Sometimes sellers want to think it over play a waiting game or even decide how serious they are about selling. You have to keep moving regardless of what happens so if youre not actively negotiating with a seller or several sellers keep prospecting for additional properties.

Try to always have multiple offers in the hopper at any given time. You might be negotiating with a seller but that doesnt stop you from putting another property under contract or looking at additional properties. Stagnation is your worst enemy so always be moving.

Keep Your Head Up Always be on the lookout for new opportunities and be ready to react to these opportunities immediately. You may see a potential property you could look into or hear about a property from a friend or a coworker.

These new opportunities are all around you but you have to look for them and seize the moment immediately. Why put something on a todo list that you might never get to? Keep your eyes open and react immediately.

Dont look Back Regardless of how skilled you are at negotiating deals writing offers or putting yourself in position to score the reality is that even the most skilled real estate investors wont close every deal they go to work on.

When you strike out go back to the dugout with your head held high. Move on to the next deal and learn from your past mistakes. A mistake or a misstep is a learning opportunity that can come in handy the next time you step up to the plate.

If you keep these principles in mind on a daily basis making money wont be a problem for you. Daily attention to activities that give you the potential to move into scoring position are critical to your success as a real estate investor. Regardless of whether you score by reaching one base at a time or by stepping up to the plate and crushing a high and tight fastball into the center field bleachers the result is the same.

In real estate investing a score is a score. When you score youre increasing the size of your portfolio making money and living a dream that millions of Americans would kill to have. So get suited up and head to the ball park.

Just make sure you come ready to play. I know I will.

About the writer:  Charrissa Cawley has a long standing reputation for excellence as a gifted speaker real estate trainer and wealth coach. She offers accurate and proven strategies to investors of all different levels and is the founder of www.reiconferences.com and www.rewexclub.com.