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Posts Tagged ‘news’

The Benefits to Financing with Personal Loans versus Cash Advances

By On December 23, 2011 Comments Off on The Benefits to Financing with Personal Loans versus Cash Advances

Just in time for the post holiday blues of having to pay for presents, we have a guest post today that will provide some “news and insights” into getting ahead in 2012 by making some good financial decisions, planning ahead and preparing for you upcoming bills versus making quick decisions which often can carry a backlash of financial burdens.

Loans are a requirement each one of us has at some point in life. Be it for personal or professional purposes, education, medical or any other reason. From short term personal loans, to cash advances that will protect you against sudden emergencies, to long term mortgages for your house and vehicles, there are many different types of loans available nowadays to cater to your personal and business needs. These loans vary from the amount of loan, interest rates, types and other additional costs. Taking into consideration these factors, you should be able to choose a loan that suits your needs best.

Financial experts however, having considered today’s high loan rates, are of the opinion that it’s better to choose a personal loan over a cash advance any day. To best understand their reasoning, it is important to understand what a personal loan is and what a cash advance is. Cash advance is a loan that is taken out against your credit cards, which means it’s basically an option for cardholders to borrow actual cash or currency against their present credit balance. Cash advances generally carry a higher rate of interest charge than most of the loans available and in the long run have been proven to be more expensive.

Besides the higher interest, another clear drawback is the limited amount of cash one is able to loan at a particular time, since only a small percentage of the credit limit is available as cash to the card holder. It is rare to enjoy a grace/interest-free period with cash advances and interest rates charged have been known to go as high as 23% often. That being said, cash payments against cash advances can be helpful in some situations like a medical emergency. You also enjoy the convenience of taking out a currency advance against your credit card balance instead of depending on a debit card or cutting out a cheque.

Money that is accepted in a cash advance is accumulated to the amount that you owe the bank and can be very expensive, especially in the long run. Personal loans on the other hand help reduce costs and have better interest rates. Although a major inconvenience in getting a personal loan would be the amount of paperwork and formalities involved, getting one today has become more simplified with easier availability and door step deliveries. Though personal loans have a longer approval period, like employment check, age eligibility, residence proof and suitable guarantor, there are many reasons why choosing a personal loan would be beneficial to you in the long run.

Personal loans have a maximum interest rate of 12 to 30 % depending on your eligibility and the other criteria that are met while interest rates on cash advances can go up as high as 35 to 50 %. Another benefit of personal loans is that banks may waive your administration and processing fees once they have found your creditworthiness. With cash advances however, you will be charged non-refundable and compulsory fees in advance.

Finally, credit card companies have been known to apply low interests initially, only to raise the bar in the long term, forcing you to pay higher interests while paying off your card balance. Personal loans enjoy a constant rate of interest throughout the repayment phase. These are some of the reasons why personal loans, while traditional, are often better to gain better interest rates than going down the road of a payday loan or cash advance.

Credit Card Balance Transfer Day December 11

By On December 8, 2011 Comments Off on Credit Card Balance Transfer Day December 11

Following the push that inspired bank balance transfer day in November, consumers are being urged to focus on a new goal, transferring high interest credit card debt to a new bank, lender or credit union on December 11th. Most consumers are being urged to seek out 0% apr card offers, to try and maximize their savings. Finding a card company offering a zero percent interest rate is not entirely challenging, the key is to try and find a company that offers both a zero percent rate and zero transfer fee offer.

Finding a great balance transfer deal is about doing your homework and applying some simple mathematical principles. Consumers need to examine the savings from the balance transfer, including any potential fees. For example, transferring a $10,000 credit card balance to a zero percent card offer, that includes a 5% fee, means you will be paying out $500 in interest charges immediately. So if you have a card with an interest rate of 7.9%, you are annually paying about $800 of interest (annually) the key is how much you can afford to pay monthly on your balance, if you have the potential to quickly pay down this balance this offer may not be financially beneficial to you. Zero percent offers can help reduce you monthly cash flow obligations and allow you to focus paying off higher balance cards with higher rates or other debts with higher rates, but you need to look at all of the numbers, including the rate your card will adjust to following the offer expiration for the balance transfer. Most card companies are offering between 12-18 months at most for a zero percent balance transfer offer. There are a few lenders offering 21 and 24 month balance transfer deals.

To qualify for a great rate, zero percent card offer you probably need to have great or exceptional credit. Consumers looking for alternatives may want to consider a local bank or credit union, that could offer a reduced card rate, without some of the big company restrictions. Take advantage of balance transfer day this year to improve your financial future and save on your interest expenses.

Emergency Power for the Home Following a Storm or Other Natural Disaster

By On December 8, 2011 Comments Off on Emergency Power for the Home Following a Storm or Other Natural Disaster

There are many types of natural disasters that can cause long-term power outages in your home. Things like thunderstorms, tornadoes, hurricanes, blizzards and flooding can knock the power out for hours or even days at a time. Even something as simple as a blown-out transformer or a vehicle slamming into a utility pole can kill the electricity supplying an entire neighborhood for many days.

Considering the fact that we are very dependent upon electricity, a power outage lasting more than a few minutes can become an emergency. The longer the power outage lasts, the more problems that can arise, which can cause things to become expensive or even dangerous. During the wintertime, a power failure normally disables your home’s heating system. As your home cools down, it can become necessary to vacate the premises, plus frozen pipes can result in hundreds of dollars worth of damage.

During a power failure, your refrigerator and freezer will stop running. Melting frozen foods can result in a big mess as well as cost you a lot of money in wasted food. If you happen to live in the country and depend upon well water, a power failure can cut off your water supply.

All of these scenarios can be avoided by buying an emergency power system to have on hand in case of an emergency. There are emergency engine-powered generators available that burn gasoline, propane or diesel. These generators come in different sizes which all handle different types of work loads. For example, if your main goal is to keep your refrigerator and/or freezer running as well as a few lights and small appliances, this can be accomplished wit a 2,500 to 3,500 watt generator that allows you to plug several extensions cords into it. If you would like the assurance of knowing you can power your well pump, furnace and water heater, this can be accomplished with a 5,000 watt generator that is wired into your home’s circuit panel.

Gasoline-powered generators are easy to use and a good way to supply your home with emergency power. A typical price for a 5,000 watt generator ranges between $500 and $1000 and it consumes about one gallon of gas every two hours or so at an 1,000 watt output. The disadvantages of gas-powered generators is the fact that they run loudly and that they require some routine engine maintenance.

You can get power from the generator to your home by running extension cords from the generator to your appliances. Or, as mentioned above, you can have an electrician wire the generator directly to your home’s circuit panel so you can easily switch the entire home over to the generator when needed. It will cost about two to three hundred dollars to have this done, but many homeowners find the convenience factor far outweighs the costs involved in hiring an electrician.