Retirement Plan Calculator

Refinancing education loans can be so simple and attractive that many borrowers tend to overlook some critical points about student loan refinancing. Sometimes what you dont know can save you a great deal of money, time, and frustration. Below youll find a few little know facts that can save you big bucks when refinancing your education loans.

Consolidation Loans have a fixed interest rate versus a variable interest rate

Most education loans have a variable interest rate which can mean significant changes in the monthly payments if interest rates increase as they did on July 1st, 2006. With a fixed interest rate, the monthly payments and total payoff balance is a set amount. Some education loans such as the Perkins Loan and the HPSL (Health Professionals Student Loan) are fixed rate loans. Before consolidating its important to weigh the repayment benefits of rolling these kinds of loans into the consolidation.

Consolidation lenders vary significantly in terms of money-saving incentives

What separates one lender from another when it comes to consolidating education loans are the types of incentives each offers. Lender incentives can greatly reduce monthly payments and the total amount owed over the lifetime of the loan. Many lenders offer incentives for auto-debit payments, but rarely more than .25%. Another standard incentive is a 1% reduction in interest rates after 36 months of on-time payments. When shopping for a lender to consolidate your education loans, look for one that goes above and beyond these standards. ScholarPoint for example, offers an auto-debit interest rate discount of .50% and a 1% reduction in interest after only 24 months, a full year earlier than the norm.

Your loans must be current in order to consolidate education loans

If youre behind on your loan payments, youll need to get caught up before refinancing. Once you refinance, youll most likely enjoy much lower monthly payments to ease your budget once you are caught up.

Private education loans and federal education loans cannot be combined when refinancing

While federal student loans are funds lent by the government, private student

oans are those offered by independent lenders and tend to have a higher rate of interest. Those who have both types of education loans will need to secure 2 different consolidation loans. Its best to consolidate federal education loans first and then start the process of consolidating your private education loans. You can however, consolidate federal subsidized and unsubsidized loans together. They do need to be tracked separately, but a quality lender will take care of this for you.

Your deferment and forbearance limits start over when you consolidate

One of the most important benefits of education loans is that they allow students to put their loans in to deferment or forbearance status during difficult times encountered while building their careers. When you refinance, you are essentially getting a whole new loan, meaning that your deferment and forbearance limits are reset.

Consolidating during the post graduation grace period allows you to lock in the lowest rate

Interest rates during the grace period (6 months after graduation) are .60% lower than after the grace period when loans move into repayment status. Consolidating before the grace period is over helps to lock in this much lower interest rate. Its best to start the consolidation process soon after graduation to ensure that there is adequate processing time. You can specify that your new consolidated loan begin at the end of your grace period so that you may enjoy both benefits.

Borrowers can no longer reconsolidate student loans

For many years, borrowers have had the opportunity to reconsolidate their education loans if they were unhappy with their lender or found a better loan offer elsewhere. As part of the Federal governments July 1st 2006 student loan changes, borrowers now face major restrictions when it comes to finding a new lender for already consolidated loans. Unless you plan to take out new loans that would allow you to reconsolidate, it pays to shop around and find a lender you are going to be happy with because you only have one opportunity to consolidate.

Refinancing education loans is one of the easiest ways to lower monthly bills and make paying back your college education affordable. Keeping these little known facts in mind can save you a great deal of money and make consolidating your education loans a smooth and simple process.

Traditional Ira Calculator

Most car buyers spend hours researching the makes and models of car before deciding which to buy. Then four out of ten rush out to the showroom and sign up for the car within 30 minutes of stepping inside.

But will their painstaking research extend to sourcing the cheapest finance package? Probably not. Whilst around 50% of new cars bought privately are purchased on finance, nearly 20% sign up in the showroom for the finance deal offered by the manufacturer. Unfortunately that could turn out to be a costly decision. With typical manufacturers finance costing 13.7% per year over a 3 year and including a 10% deposit, they could be throwing some $1,800 down the drain.

Take someone buying a new Renault Megane Sport Saloon Privilege 1.6 and lets assume that it costs $16,000 on the road. Including 3 years interest that means the full cost will be $17,384. However, there is a much cheaper option. With a good credit history you could get a personal loan at only 5.5% and end up paying just $15,631 – thats a full saving of $1,753. This goes to prove the old adage that it pays to shop around. Rushing to accept the dealers finance package can hit your pocket hard : its effectively giving back the discount we hope you negotiated!

OK, I can hear talking about the special finance offers that manufacturers are forever advertising. Yes, there are some really good deals – but always look closely. Some deals only relate to specific models with a set specification, often the cars that the manufacturers are having trouble shifting. A beware some deals have a sting in their tail. Take Volkswagens current offer on the Polo E2. Their deal is advertised at 5.8% with a monthly repayment of $99 over 35 months : sounds a great deal but look more closely and youll find theres a final balloon payment of $3,750 or alternatively you can trade in your E2 for another Volkswagen.

The car manufacturers use these deals to promote brand loyalty and encourage another purchase in 3 years time. They know that most cars will be traded in after 3 years rather than pay the large balloon payment.

Of course, personal loans and manufacturers finance are not the only way you could finance your car.

The traditional way to pay for your car is through hire purchase. With HP you pay a deposit, usually of at least 10%, or trade in your existing car for at least the same value, and then use HP for the balance of the price. The loan is then effectively secured on your car. So in practice, your car still belongs to the HP company until you have made your last monthly payment.

Then if you want to sell your car before youve completed the HP agreement, there will almost always be an early redemption penalty : often up to three months interest. The HP company will also register its financial interest in your car with HPI the finance tracking agency. This effectively means that you will be unable to sell your car until you have paid off the HP loan.

Another alternative is Personal Contract Purchase, PCP for short, and in recent years PCP has become very popular. Here you also agree the mileage you expect your car to clock up each year. You then pay a deposit and part of the purchase price is deferred until the end of the agreed payback period. Your monthly repayments then repay the balance and the interest. These schemes are highly flexible as you can select the length of the loan and the size of the deposit but youll find that interest rates vary considerably between lenders. The current average is about 12.8% – still well above the 5.5% rate for a cheap personal loan.

At the end of the PCP contract youll have three options: –

Pay off the deferred balance and keep the car

Trade in the car using the trade in value to help pay off the deferred sum and hopefully leaving a balance towards a new car

Hand in the car and walk away with nothing more to pay.

This last option is always subject to your cars condition reflecting normal wear and tear and its mileage is in line with the annual mileage you agreed when you purchased it. If the recorded mileage exceeds the forecast mileage, then youll have an excess mileage charge to pay. The cost per excess mile will always be specified in the PCP agreement.

One of the big advantages of PCP is that the guaranteed buy back option effectively protects customers against excessive depreciation of their car.

As you would expect, car dealers take a commission for selling PCP contracts and to encourage you, you may find theyll agree a bigger discount on your car if you take their PCP deal. If your lucky, they may even throw in a low cost servicing package or low cost insurance. But take care. Youll need to do some homework to ensure that these extra goodies are truly worth the extra interest charged on the PCP contract.

M And I Retirement

If you find yourself getting close to retirement age without a nest egg, do not despair. There are still things you can do during your 40s and 50s to get yourself prepared for retirement. They include figuring out how much money you will need during retirement, income sources like social security or retirement pensions, setting goals, start contributing to your 401 (k), be aggressive, downsize, and eliminate debt to name a few.

The first thing you should do if you find yourself close to retirement with no savings is to calculate the amount of money you will need during retirement as well as what age you plan on retiring. You will find many resources online that will help you come up with this number such as retirement calculators.

Once you have a general number you will need for your retirement, then you should figure out the income you will receive each year in social security benefits, pensions, other retirement accounts, 401(k) plans and the like. Be conservative when figuring this number because you do not want to overestimate. Then, you can subtract what you will be earning each year from what you need to live comfortably and that will give you the money you need to save.

Now that you know how much money you will need on average you can set some savings goals for yourself. There are plenty of ways you can save money from shopping with coupons to taking your lunch to work with you to not buying a new car every year. Wherever you are spending money and can scale back, do. It will mean the difference between a happy retirement or a stressful one.

Next, if you have a 401(k) plan and are not using it, start! Start depositing the maximum allowed so you can get your retirement account beefed up and prepared for your years of relaxation. Also, see if your employer has a match program as well, this is free money and will help your nest egg grow that much quicker.

If you have some investments, consider getting a little aggressive with them. The stock market and mutual funds are a good place to start, and with the help of a stock broker you can likely turn a little money into a lot pretty quickly.

If you are still concerned about making it during retirement consider downsizing to a smaller home, less expensive car, fewer vacations, and less shopping sprees. This might take some effort, but it will be worthwhile to be able to retire happily and not continue working when you are 75 years old.

And finally, eliminate any debt you have. Do this as quickly and aggressively as possible because the longer you wait the more money you will have to pay. So, if you pay it off quickly it might be difficult, but it will allow you to save more money for retirement in the long run.

Retirement Planner

There is just no easy way to get out of debt, you have to face up to the consequences. A bankruptcy is not always the answer, as the effects are long lasting. There are four ways to handle debts that are out of control, listed in best to worst in regards to the effect it will have on your credit:

If your credit isnt in terrible shape, can you reduce your other expenses, even if it means making hard choices or just change your lifestyle to fit your income! Some ways to do this:

Alternatives:

  1. Selling the second car
  2. Pulling equity out of your home
  3. Applying for a non secured signature loan
  4. Obtaining a loan from a relative
  5. Selling your home and paying off your debts with the proceeds and then renting
  6. Cashing out your 401K/retirement benefits
  7. Selling family heirlooms, jewelry, etc.

Filing Bankruptcy – Final Solution

If your credit is already gone or one of the above isnt an option, go through Consumer Credit Counseling Services. Check your yellow pages for the local number. In this way youre paying off your debts as if you were in a Chapter 13 bankruptcy, but you dont file a bankruptcy.

If CCCS wont take you, you may want to consider bankruptcy. Filing a Chapter 13 takes longer, but your credit is in a little better standing than if you file a Chapter 7. In Chapter 13 you are given up to 5 years to pay off your debts. The disadvantage is that youre in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.

If you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. Chapter 7 is the least desirable credit wise, but you are typically out of bankruptcy in 6 months and you dont have to repay any debt.

Disadvantages of Filing Bankruptcy

The disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy, and creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing. Depending upon how complicated your financial situation is, you may want to consult a lawyer before proceeding.

There is no magic solution. Dont believe anyone who tells you otherwise.

Get Retirement Right

Wisdom is needed when making choices in life? especially when making financial choices! Most people will be making constant choices as they put together a money management portfolio to make sure they generate an income and give their loved ones peace-of-mind with insurance contingencies. Your portfolio, for example, may need to include insurance, investments, tax planning, estate planning, as well as retirement strategies. And you just might be shocked to learn that a financial portfolio can be bolstered with a UK secured loan.

It sounds strange, but for some people its absolutely true! In fact, many people are looking to UK secured loans to strengthen their financial position. But you cannot just go select the first loan that comes your way. There are three things you should look for when selecting the right UK secured loan to add to your financial portfolio.

The first thing you should look for is the amount of money you need. By shopping around, you may be surprised at how much money is available from lenders to people like you who are looking to add some muscle to their money. You should look at your budget as well as the amount of money you need to help you determine how much of a loan you should get.

The next thing youll want to look at is the repayment frequency. Is the loan supposed to be paid back every week? Every two weeks? Every month? For some people, the best option is to match the loan repayment with their payday schedule so that they can be assured that there will be money in the bank when its time to pay the loan down. One option some people are choosing is to set up a monthly repayment schedule but put more money down (perhaps once a week) which will get applied directly to the principal! Often, the repayment frequency will determine the amount due with each payment, so that may be a factor in helping you decide the repayment frequency. Perhaps a large, monthly payment is more difficult to make than several smaller payments in a month. Youll have to decide the best option for you.

The last thing you need to consider is the interest rate. Many people simply ignore this completely because they feel that they have little control over prevailing rates at the time of the loan. However, with a little work and wisdom, you can manage your interest rates quite well. For example, some of the things you can manage when it comes to interest rates include the risk level of the recipient, the amount of money borrowed, and the period of time in which the money is expected to be paid back. Prevailing interest rates will determine the window of interest rate available. It is up to you to find the best rate for you.

Now that you know the three things you need to look for, it is time to go out and find the right UK secured loan for you. Be sure to shop around and you choose wisely from the selection you find.

The Best Retirement Calculator

It never fails, just when finances are their tightest it seems that something turns up. The car breaks down, the dishwasher stops washing or the kids need a tooth taken care of. It can be hard enough to stretch the family budget to make ends meet, and then add in an unexpected expense and soon you can find yourself with a serious cash crunch and payday is nowhere in sight.

Each year, millions of people take advantage of payday loans from a relatively new industry that was formed to help solve a problem the big banks couldnt (or wouldnt): loaning small amounts of money to people for a very short period of time. Traditionally, small loans (typically anything below $5,000 in the banking industry) simply were not profitable. Payday loan companies came along to help fill that void and provide a quick, convenient and easily accessible service to fill the niche that the big banks wouldnt touch.

Everyone at one time or another needs a small amount of cash to get through a crisis. The last thing many people want to do is ask relatives or friends for the money, and more often than not using credit card cash advances can trigger an avalanche of fees and interest rates that will keep you paying over and over again for that “quick” loan.

Payday loans in recent years have come professional, courteous and quick ways to solve your money needs. Most locations are now run better than most bank branches – excellent customer service, quick resolution of your problems, and a welcoming atmosphere. In fact, many of the loan companies have now taken to setting up shop online to further enhance their customer service. Today, you can go online to fill out the application, make your payments and even arrange for direct deposit of your loan funds. All from the comfort of your own home!

For many people payday loans let them take care of the small problems in their life before they become big problems. The car breaks down and you cant get to work – if you cant work, you cant pay your bills. Its an endless cycle that can be broken by using a payday loan company. They are there to help in your time of need – professionally and discretely.

The next time you find yourself struggling to make it to the net paycheck, or wake up in the morning only to find your hot water heater decided to take an early retirement, take a look at the services payday loan companies can offer to help you make it through your cash crunch – they may be the financial lifeboat you have been waiting for!