Reverse mortgages are a special type of loan that is designed for retired senior citizens of at least 62 years of age whose mortgage is almost paid off or paid in full. In the case that the home is owned jointly, both owners must be a minimum of 62 years old. Reverse mortgages account for a small percentage of the mortgage market, however they are on the increase due to some enticing advantages: Reverse mortgages let the elderly who only have a small savings and a tight limited income tap into the equity in their homes for cash, without having to make loan payments as long as they stay in the house.

Independent living was a common desire for the majority of older Americans according to a survey by the AARP.  The reverse mortgage allows the elderly to keep that wish and assist them in living on their own. Instead of like a regular mortgage, to obtain a reverse mortgage, there are no requirements to provide a statement of income. There also is no credit history pulled and no required monthly payments for the loan.

Homeowners can use this type of loan for any reason, or a variety of reasons. Increasing costs for health care, utilities, and other daily expenses are causing a struggle for seniors who are  living on a fixed income. Seniors can choose how they want to receive the money.  They may choose to receive payments in a lump sum, on a regular monthly basis for a preset term, or they may choose to have it available as a line of credit. The homeowner also is able to reconfigured the loan during the course of the loan.

Many elderly people have benefited from having a reverse mortgage and improved the quality of their retirement years. A lot of people who would be  able to qualify are simply not familiar with the benefits. Even though the mortgage can be paid back, usually the bank ends up owning the house when the owners pass away.

For all of the luring appeals of getting a reverse mortgage homeowners who are considering one need to be very aware that these agreements significantly reduce or eliminate any inheritance that would have otherwise gone to their beneficiary.

To begin with, have a legitimate reason as to why you even need to get a credit card.

Cash Flow

One reason to have a credit card may be to help with cash flow. When you use a credit card to purchase an item, you don’t have to withdraw money from your bank account. The funds in your bank account can be earning interest while you can still purchase what you need. Whenever the credit card bill arrives, you make one payment to the credit card company for the amount of charges accumulated for that month.

Access to quick cash from ATM machines is another reason some people want to have a credit card. This is handy for when you are traveling, on vacation, or away from home for extended periods of times. You will want to find a credit card with the lowest possible rate for cash transactions if you want a credit card for instant cash.

Rates and Fees

When researching all of your credit card options there are many details to check out related to their rates and fees. This information is usually included in the fine print of your agreement.

• Interest – Take note of the interest rates including special introductory rates, balance transfer fees, late payment fees, and other details.
• APR – (Annual Percentage Rate) which varies from one company to the next. Take your time and compare companies to find the lowest APR available.
• Benefits -  If you have good credit, there are credit card companies out there that will make you good offers. You may be entitled to some benefits as a new card holder.
• Rewards -  A credit card company may also offer you various rewards associated with your credit card. These may include reward points, frequent flyer miles, or cash back on your purchases. You may be able to apply the cash back towards your monthly payments. Not all credit cards offer rewards, so read the details carefully.
• Payments – You can pay the minimum amount required or any amount over that, including paying the balance in full every month. The minimum amount required per month will vary with each card, but most will be about 3% of your account balance. You may find some higher and some lower percentages. They will also differ on the period of time that is interest free.

There are many factors involved in choosing a credit card. If you don’t have a credit card be sure to make the right decision for which one will be a fit for you. Once you have done your research and reached your conculsion, make sure you understand all of the details in the credit card agreement. While credit cards are handy to have they can lead to problems if not handled correctly. However, if used responsibly, credit cards can help you obtain more credit, and also improve your credit score.

If you’ve ever tried to look at your credit card statement then you probably know it can be a little confusing to follow the first time. It is highly important to go over your statement each month to keep track of your spend and watch for any suspicious activity.When was the last time you took a detailed and unhurried look at your credit card statement? Understanding every detail printed on your credit card statement is not an easy undertaking?

You must read the fine print on your statement in order to understand and control monthly spending. It will help you to practice proper credit card management. You may be surprised by what you find when taking a good look at your statement and you discover just how your credit card works.

What is a credit card statement anyway?

A credit card statement is a list of all of your transactions during the previous month’s use of your credit card. Note that the month on the statement may be from the 10th of one month to the 10th of the next month. Credit card companies don’t necessarily bill you according to calendar month. Included on the statement are the total outstanding balance, payment due and due date.

A credit card statement has two parts. One is the payment slip which you detach and enclose with your payments. The second part is the part most people just skim over and never really read. This is the part that lists all your credit card activity. This is the part which we are going to examine.

Name and address: This is the card holder’s name and address that the credit card company has on file. If you have a change in your address or phone number, you should notify your credit card company in writing of the change and request an acknowledgement letter or send it with a return receipt requested.

Reference number: This number is the number that the credit card company uses to reference their records. If you ever dispute a charge on your statement, this is the number you will need.

Credit card number: This is the 16 digit number that’s shown on the face of your credit card. American Express or Amex is an exception to the rule and only has a 15 digit number. This is the number you should enter in the memo field of your check when you send in your payment, or if you pay by any other method such as by phone or online.

Credit limit
: This is the maximum amount your credit card issuer allows you to spend. If you spend more than this amount you will be over your limit and you may be charged a penalty for this depending on the credit card company.
Your credit limit may be increased if you have a good track record when it comes to payments. Paying more than the minimum amount each moth and paying on time can help you to get your credit limit increased.

Available credit limit: This is the difference between what you have already spent on your credit card, or your total balance due and what you have left to spend until your reach your credit limit. For example: if your credit limit is $5000 and you have already had a balance due of $4000, your available balance will be $1000.

Cash limit: Most credit cards allow you to take cash out on your credit card. Often a different interest rate is applied for taking cash out as opposed to purchases made. Your cash limit is included in your maximum credit limit, not in addition to it.

Statement date: This is the date on which your credit card company generates their bills. This is also the date used to calculate interest on your outstanding balance. You will continue to be charged interest until your outstanding is paid in full.

Payment due date: This is the date before which your payment must be received by the credit card company to avoid being considered a late payment. So be sure that your check reaches the credit card issuer well before the due date so that no late payment fee applied.

Total amount due: This is the total amount to be paid by you. This includes total unpaid purchases, cash advances, interest accrued and any fees applied.

Minimum amount due: To keep your account in good standing with the credit card company, this is the minimum payment you must make. This amount is usually 5 to 20 percent of your total amount due. If you do not pay the minimum amount by the due date, this will count against your credit score and you may be charged late payment fees.

Rewards point summary: If your credit card has a reward points system included, this is a summary of points earned on purchases and/or cash advances. The summary usually gives an account of your opening balance and the points earned and redeemed. Reward points and the method of redemption vary from one credit card to another. The total of your reward points should not be confused with any other balances or payments due on your credit card statement. These are merely incentives used by your credit card company and do not count towards your bill in any way.

Transaction details: This is the list of all of the transactions made during the billing cycle. It will include the type of transaction (whether it’s a purchase or cash advance), the place you made the purchase, the date of purchase and the amount charged. This helps you verify the validity of the charges to your card.

It is vitally important that you check your credit card transaction details regularly. This is the only way you will discover if all the charges made were actually made by you. If you believe that any charges were made fraudulently, report it to your credit card company immediately. It is also a good idea to keep all of your credit card receipts, that way you can compare them to your statement. Sometimes you may forget about a charge you made and believe it’s fraudulent when it’s actually not.

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Source: http://www.articlealley.com/article_715579_19.html

Learn the advantages of auto leasing over most purchase installment agreements. Everyone has different vehicle needs. There are also important tax considerations to consider. Consideration of your options can save you money in short and long term.

• Reasons to lease
• What is a lease residual?
• Reasons to purchase
• Should I qualify for a loan before purchasing the car?
• Should I read all the paperwork?

Reasons for auto leasing
Whether you choose to buy or lease your new car should depend on a number of factors. If you are the kind of person who likes to get a new car every few years and don’t drive more than 15,000 miles per year, leasing might be the best way to go. You will want to make sure that the term of the lease is not longer than 3 years, unless you really plan on driving the vehicle for longer. It is also important that you make sure that the mileage specified on the lease will cover the number of miles you intend to drive annually. Getting out of a lease early can be very costly. When leasing, one of the advantages is that it normally requires less money down and will give you a lower payment than if you were to purchase the same vehicle. The reason is that you never buy it down to a zero balance. The “residual” or guaranteed cash value at the end of the lease is what you are buying down. In addition there might be tax advantages for auto leasing is being used for business. It is best to check with your accountant to see if it would be to your advantage to lease.

What is a lease residual?
Residual is the dollar amount that the bank guarantees your new car will be worth at the end of the lease as long as you stay within the terms of the lease. At the end of the lease this is also the amount you would pay for the car if you wanted to purchase it, plus tax, license, doc & any other applicable fees. The residual is set by the bank and is a percentage of MSRP regardless of what the actual purchase price is. Residual is not negotiable as the bank is guaranteeing the value and therefore they set it. If at the end of the lease, you have stayed within the terms of the lease, if the car is worth more than the residual, you might want to buy it, sell it or trade it in. If however at lease end the value is less than the residual, you can give it back to the bank and not be responsible for anything (As long as you have stayed within the terms of the lease).

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Henry Dahut is an attorney and marketing strategist who works with some of the largest law firms in the world. He is the author of the best selling practice development book, “Marketing The Legal Mind” and offers consulting services in the area of strategic branding and law firm marketing. Henry is also the founder of the legal online help-portal http://www.GotTrouble.com – the award winning site that helps people through serious legal and financial trouble.

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Knowing your credit rights as a credit card holder will be your guide and protection against unlawful practices that may be committed by creditors and debt collectors. The Fair Credit Reporting Act (FCRA) has made distinct stipulations with regards to promoting the accuracy and confidentiality of consumer credit reports. Let’s discuss some of these credit card rights based on the FCRA:

Who may ask a copy of your Credit Report?
Credit bureaus may only issue a credit report for legitimate business transactions. Those who may review your credit report are your employers, insurance companies, creditors, and government agencies. The consumer himself may also request to obtain a report on a behalf of a third party.

Disclosure
You have the right to know who obtains a copy of your credit report. Credit Bureaus should provide you with this information. Of course, you have the right to obtain a copy of your personal credit report as well.

Generally, there is a fee in obtaining a report. However, you are entitled to obtain a free copy of your report each year, if you are currently unemployed, on welfare or if you suspect fraud committed against you. If you are in any of these situations, you may write one of the major Credit Bureaus and request for your free copy. At the end of this article, you’ll find the contact information of the three major Credit Bureaus.

Errors on Your Credit Report
You have the right to dispute erroneous details or inaccurate information on your credit report. Notify a Consumer Reporting Agency or one of the major Credit Bureaus immediately. They should investigate on the matters in dispute and take the necessary actions to ensure that these errors are corrected.

What if you’ve been denied Credit?
If a creditor turns down your application, you may request a free copy of your credit report from a credit bureau. This will give you the opportunity to check your personal credit report and verify if there are any errors or inaccuracy in the report which resulted in the disapproval of your application. If this is the case, you may request the credit bureau to send a corrected copy of your credit report to the lenders whom you submitted your applications to.

Limit Access to Your Information
You may request consumer reporting agencies not to give out your name to lending companies and other creditors who make unsolicited inquiries to offer loan, insurance or credit cards.

You may call (888) 5 OPT OUT for your name to be excluded from Experian, Equifax, and Trans Union. However, this exclusion will only last for 2 years. If you want to be permanently be excluded from the list, you have to fill out a written form from the credit reporting agency’s office.

Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act protects consumers from unlawful practices or deceptive strategies that creditors may use against them. For instance, a debt collector may not contact other people such as the borrower’s friends, relatives or employers to get personal details or to disclose any information about the borrower’s debts.

Debt collectors may not use abusive tactics or harassment against the borrower. If you think your creditor is committing such acts, you can sue him for the grounds of violation of the Fair Debt Collection Practices Act.

If you have been a victim of fraud or unfair business practices, you may file a complaint at Federal Trade Commission office or call their toll free number at 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. For more information about your rights as a consumer, visit FTC’s official website at www.ftc.gov.

The Major Credit Bureaus:
Equifax – 1-800-685-1111 – www.equifax.com
Experian – 1-888-EXPERIAN (397-3742) – www.experian.com
Trans Union – 1-800-916-8800 – www.transunion.com

This article is free for republishing
Source: http://www.articlealley.com/article_732245_19.html

know your current personal financial situation

estimate how your financial situation will develop in a short term perspective

set long term financial goals, make a plan to achieve them and then execute your plan.

Get a view of your current financial situation

Collect accurate information about your personal financial situation. Calculate your your net worth, This information includes:

real estate

saving and retirement accounts

stocks and bonds

all other assets.

What is the total? Are you surprised?

Make a budget

A personal budget is information made up of your income and expenses and the more accurate this information is, the more likely you are to be able to meet your goals and realize your dreams. An income/expenses budget should be made for at most one year at a time and include a list of your monthly expenses. All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recur every month and expenditures that happen less frequently. Divide that total by twelve and you have your monthly average expenses. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going.

Get electronic bill pay

This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy, don’t you think? Check out programs for enabling this on the internet

Make an investment and finance plan

Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. What I mean is:

investments

retirement planning

loan shopping

other ways to build a fortune.

You need to make a plan of what you really want in life that money can buy. Then you must find out how to get the money it takes to finance it and finally start to implement this plan. This is the long term part of your financial life – the process of personal financial development from the state you are in right now – to the state you want to be in. This journey toward financial freedom is in my opinion the most interesting and exciting part of personal financing you can have.

About the Author: Terje Brooks Ellingsen is a writer and Sociologist who runs http://www.1st-self-improvement.net/. He writes about self improvement issues like career development, see http://www.1st-self-improvement.net/take_command_of_your_career.htm and financial development, see http://www.1st-self-improvement.net/financial_freedom.htm

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