Luxury item #1: Get out of consumer debt

Being debt-free is an incredible luxury! There are a ton of books and articles out there already on how to budget and avoid debt, so I won’t hold forth on how to do it. The important issue is WHY to do it. And the answer is simple. Peace of mind is the ultimate luxury!

Luxury item #2: Make some time to make a wish list!

While putting the wheels in motion on reducing debt, there’s a happier issue to think through as well: What is it you really want out of life? Peace of mind (and of household) starts with asking these Really Big Questions!

More importantly (assuming you actually care about your relationship), what is it your partner craves? If you don’t know, well… it can be fun finding out. Too many financial planning exercises are painful, which is why not enough people do them. This exercise, finding out what really matters to you both, isn’t.

What are the things in life that really feel like luxury to you? Now is the time to identify them, and separate out the smaller, less satisfying things you’re paying for that keep you from getting what you really want.

To keep to the spirit of fun, I’ve found it’s useful to agree to some simple ground rules:

• Make some unbroken wish list time for the two of you
• There are no such things as ’silly ideas’ or ‘waste of money’ items during the wish list time (that will come later on during a reality-check period)
• No impulse spending during the wish list time! Window shop if you want, share a seat in front of the computer if you’re looking online… my preference is to go hang out in antique markets and bohemian shopping districts for ideas, but you might prefer to go visit a travel agent’s office or web site. It DOESN’T matter!
• Each partner gets equal time to show off their ideas if they want it.

Being realistic, there will, of course, be a price tag associated with the wish list. Also being realistic, not all luxuries cost an arm and a leg, either. If you have the iron will to make a strict budget and do without so that you can go hang out in Tuscany for a month next fall, good for you (and yours!) If you’re like me, though, it may make sense to make do with lesser luxuries.

Luxury item #3: Keep looking until you find reasonably-priced luxuries that really make your life more worth living, then revel in them!

That’s all it takes. If you get this far, you’ve done a few extremely healthy things. For starters, you’ve actually talked to your sweetie about money, without it being a crisis! You’ve spent some time dreaming together. You’ve examined your debt and thought about what it’s costing you. And with any luck, you’ve found at least one thing you can enjoy without feeling guilty about what it’s costing you… because it’s an investment in your piece of mind.

–

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About The Author

© Andy White, budget guy for Coudy Coffee - because life is too short for mediocre coffee. For gourmet coffee and espresso; coffee gifts, information and resources, visit http://www.coudycoffee.com.

andy@coudycoffee.com

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Because a secured loan is secured on property, most lenders will approve your loan even if you have a history of adverse credit such as county court judgements, defaults and arrears. This make secured loans very attractive to people who would otherwise not qualify for a loan from their local bank.

You can borrow any amount from £5,000 to £100,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances. Generally, secured loans tend to be cheaper than unsecured loans and other forms of borrowing.

Secured loans have several advantages. A secured loan is a quick and convenient way to plug a short term financial need, for example, to go on holiday or extend or improve your home. In essence, a secured loan enables homeowners to unlock some extra cash by using their greatest asset - their home.

Secured loans are quick to arrange as property is always a good bet for the lender. Consequently, the terms are normally superior, with larger loan amounts, longer repayment periods and better interest rates than those you would obtain for an unsecured loan.

For people with little or poor credit history, a secured loan is probably one of the easiest ways to access credit.

A secured loan is a loan where you pledge your home against the amount of money borrowed. In the event that you default on the loan, the lender can sell your home to recoup the loss. The danger with a secured loan is if you are unable to keep up the repayments on your loan your home could be in danger.

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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Credit reporting can be helpful in extreme cases, but it is often misrepresented by collection agencies trying to sell their services. When a collection agency reports a delinquent account to a credit bureau, it does not get the business any money today. What is does is provides a ‘wish’ for a payment some unknown time in the future if the debtor ever has to do a financial transaction that involves a creditor that checks their consumer credit report.

The issue is that credit reporting also can create a liability for businesses because of collection agencies reporting accounts that were not valid debts. This can open the business to legal action - something no businesses needs. It has been esitmated that over 41% of the information contained in consumer credit reports is not accurate, and with identity theft on the rise, a business must tread lightly when considering credit reporting.

The Fair Credit Reporting Act regulates the activities of credit reporting agencies. A credit reporting agency under this law means any person or business which assembles or evaluates consumer credit information for the purpose of providing consumer credit reports to third parties.

According to consumer credit report laws, here are some items that cannot be mentioned in consumer credit reports:

A discharge or final order in Bankruptcy Court dated more than 10 years prior to the date of the consumer credit report. Lawsuits and judgments entered more than 7 years prior to the date of the consumer credit report.

Paid tax liens which, from the date of payment, precede the report by more than 7 years.

Accounts placed for collection or charged to profit and loss by the creditor that are dated more than 7 years before the credit report.

Records of arrest, indictment, or conviction of crime that, from date of disposition, release, or parole, precede the report by more than 7 years. Any other adverse information that precedes the report by more than 7 years.

Default information concerning U.S. Government insured or guaranteed student loans can be reported for 7 years after actions to collect the debt have been taken against certain guarantors.

There are three major credit bureaus: Equifax, Experian, Trans Union. Federal law specifies how long negative information can remains on a person’s credit report. This includes late payments, accounts that the credit grantor turned over to a collection agency and judgments filed against a person in court - even if later the account was paid.

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Contacting The Credit Bureaus

Equifax

Equifax Credit Information Services, Inc P.O. Box 740241 Atlanta, GA 30374 To order report: 1-800-685-1111 To report fraud: 1-800-525-6285 Web site: www.equifax.com

Experian (formerly TRW)

National Consumer Assistance Center PO Box 2002 Allen, TX 75013 To order report: 1-888-397-3742 To report fraud: 1-888-397-3742 Web site: www.experian.com

TransUnion LLC

Consumer Disclosure Center P.O. Box 1000 Chester, PA 19022 To order report: 1-800-888-4213 To report fraud: 1-800-916-8800 Web site: www.transunion.com

Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.

http://www.collectionagencyservices.net

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A remortgage is simply the act of paying off your current mortgage and taking out a new one. Many people do not realise that they are able to do this and so are losing out on low interest rates. By remortgaging your home, you could save significant amounts on your monthly payments.

Remortgaging is changing mortgages without moving home. It is the process of changing your mortgage for a better rate, or to release some of the equity in your home, or to consolidate your debts. Getting a remortgage involves ending your current mortgage scheme and moving to a new one.

A remortgage is the process by which you change from your current mortgage to a new mortgage. A remortgage generally involves changing mortgage lenders because most lenders do not generally offer remortgage schemes to existing customers.

The remortgage usually will involve a fresh survey of the property taking place, and an updated valuation of the property, which will take into account any changes in value due to home improvements, or due to fluctuations in the local or national property market.

A remortgage can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity.

A remortgage is a great way of saving money, as it is likely to lower your mortgage interest rates. A mortgage is also one of the cheapest forms of loans around, so if you’re looking to raise finance, it makes sense to remortgage your home.

Releasing equity is a good way of raising additional finance. If your home has positive equity - its market value is greater than the outstanding mortgage - you can increase the size of your mortgage.

A remortgage may allow the homeowner to repay other debts such as credit cards, personal loans or it may be a way of paying for home improvements such as a new extention, conservatory or loft conversion.

When choosing a new lender for your remortgage, make sure to find out whether the lender offers free valuation, set up fees or that they pay for the legal fees.

A remortgage should be considered for a variety of reasons:

low interest rates - a remortgage can allow you to gain a better rate of interest and reduce your monthly mortgage repayments.

debt consolidation - a remortgage can allow home owners to consolidate their existing debt into one manageable monthly payment.

raise finance - a remortgage allows home owners to raise finance. As its interest rates are among the lowest of all loan types, a remortgage is an ideal solution to finance issues.

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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Very often, a real estate agent will refer a customer to me. I will ask the questions regarding their financial picture to determine credit worthiness. Then I will tell them the interest rate that I will be able to give them.

As an a Mortgage Broker I feel for sure that I have considerably more to offer my customers. Almost 100% of the time, I can offer them a lower rate, as well as give them a level of service that the big boy’s just can’t offer them! Service such as after hours or weekend appointments, mortgage programs that suit their needs, not just mine and a guaranteed closing date.

I have had borrower(s) contact me about a mortgage that told me that the big bank turned them down for one reason or another. After reviewing their credit with them I was able to offer the exact program that the big mortgage lender told them wasn’t possible.

As a broker, I can offer the opinions of many companies credit views, not just one companies viewpoint on what is approvable and what isn’t.

I can assure you that taking the time to contact the right mortgage broker, it may be possible for you not to only get a lower rate, but possibly it will be the difference in you being able to purchase the home of your dreams!

Glenn Keller is a veteran in the mortgage industry with experience in conforming, non-conforming, FHA and VA mortgages and offer online information to apply online and obtain personal contact information. Mortgagage loans available in Georgia, Florida and other states. Visit my website at http://www.thebestmortgageguy.com

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You are being asked to guarantee a loan. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility.

You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.

The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.

Studies of certain types of lenders show that for guaranteed loans that go into default, as many as three out of four guarantors are asked to repay the loan.

If you guarantee a loan and your friend or relative misses a payment, the lender can immediately collect from you without first pursuing the borrower. In addition, the amount you owe may be increased - late charges - if the lender decides to sue to collect. If the lender wins the case, your wages and property may be taken.

Despite the risks, there may be times when you want to guarantee a loan. Your child may need a first loan, or a close friend may need help. Before you guarantee a loan, consider this information:

Be sure you can afford to pay the loan. If you’re asked to pay and can’t, you could be sued or your credit rating could be damaged.

Even if you’re not asked to repay the debt, your liability for the loan may keep you from getting other credit because creditors will consider the guaranteed loan as one of your obligations.

Before you pledge property to secure the loan, such as your car or furniture, make sure you understand the consequences. If the borrower defaults, you could lose these items.

Ask the lender to agree, in writing, to notify you if the borrower misses a payment. That will give you time to deal with the problem or make back payments without having to repay the entire amount immediately.

Make sure you get copies of all important papers, such as the loan contract. The lender is not required to give you these papers; you may have to get copies from the borrower.

You may freely reprint this article provided the author’s biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

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Selecting a credit collection agency is perhaps the most important and difficult task. Some factors you must consider while selecting a collection agency are:

- Experience and professionals - Geographical presence - Expertise - Fees and charging model - Customer references - Collection Agency Services has covered this topic in depth through various free collections reports and articles on this site.

Step II - Hiring the Collection Agency and Setting Up Processes

Once you select the collection agency, the first two steps you have to take are:

Enter into a contract with the agency;

Set up processes on how you are going to communicate with the agency.

A contract is the legal document and your legal experts will, of course, prepare it correctly. Just make sure that you include important clauses such as confidentiality and non-disclosure. You are likely to pass sensitive information to the collection agency such as your account receivables, customer contacts, product and services pricing, etc. to facilitate faster debt collection. You want to be sure that this information does not fall in the wrong hands.

Setting up processes is a very important step in dealing with the collection agency. The success or failure of your partnership will depend a lot on how well-defined your processes are and how strictly they are followed. Important processes you need to define are:

Internal processes: You have to put in place a clear process on defining bad debt and referring the case to the collection agency. You don’t want to refer the case to the collection agency before you make a sincere effort to collect the dues internally.

Information transfer: How will you transfer the information to the collection agency about your dues and defaulting customers, and how will you receive the information from your collection agency? Debt collection software can make the information transfer process easy and secured.

Third party dealing: As mentioned earlier, it is very important for you to ensure the security of the information you give to the collection agency. The collection agency may use one or more of its associated agencies to get information about defaulting customers. Hence you need to set up a clear protocol on how much information they can share with such third parties.

Communication: You need to set up single point contacts for communication within the company and the collection agency. In debt collection practices, the timing of communication is extremely important and hence it will go a long way in deciding the success of your debt collection process. Again, the importance of debt collection software cannot be overemphasized here.

Step III - Performance Monitoring

Once all processes are set, start monitoring the performance of the collection agency. This is an ongoing process when dealing with a collection agency. Important parameters to monitor are:

Quantitative

- Number of cases referred to the credit collection agency and percentage of cases successfully solved by them.

- Percentage of debt recovered by the collection agency from all cases referred.

- Percentage of debt recovered by the collection agency from solved cases.

- Percentage of amount paid as fees/commission to the collection agency to the total bad debt cases referred to them.

- Average number of days taken by the collection agency for full/partial credit collection.

Qualitative

* How well do the collection agency professionals deal with your customers?

* Has the collection agency followed all legal requirements mentioned in the Fair Debt Collection Practices Act?

* Has the collection agency gone beyond the provisions of the Fair Debt Collection Practices Act?

* Has the collection agency followed all processes and guidelines set by you?

Step IV - Contract Closure

Hopefully, the selected collection agency will work best for you. But if it doesn’t, then you need to transfer all your debt collection processes from the agency. You should remember the following important points when you are ending the contract:

Confidentiality and non-disclosure clauses are applicable even after the end of the contract with the collection agency as well as its employees. The collection agency returns all documents related to your business and destroys all information related to your business from their data storage.

Following these simple guidelines will ensure that when dealing with a collection agency that it works best for you and your bad debts are minimized.

Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.

http://www.collectionagencyservices.net

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1. Refinancing to Lower Your Monthly Payment for an Existing Loan.

You can refinance your existing loan at a lower interest rate thus reducing your monthly loan payments. With interest rates at their lowest for years, you can find some excellent rates - sometimes far much lower than what you’re paying for your current loan or mortgage. Refinancing your mortgage or loan when rates are down could save you hundreds of pounds every month and thousands over the life of your loan.

2. Refinancing to Consolidate Debts.

You may choose to refinance in order to consolidate debts and replace high-interest loans with a low-rate loan. The loans being consolidated may include higher purchase loans, student loans and credit cards. You can clear all your existing credit cards, loans and other debts and replace them all with one low cost cheaper monthly payment. On a £12,000 loan some homeowners can save in excess of £250 a month which is a considerable saving. A debt consolidation loan is a smart solution for anyone who has many outgoing monthly payments. A Refinance loan allows you to repay existing loans from the proceeds of a new loan - the loan is usually secured on property or your home.

3. Refinancing to Reduce the Term of the Loan.

Reducing the term of your loan can help you save money over the life of the loan. For example, refinancing from a 7-year loan to a 3-year loan might result in higher monthly payments, but the total of the payments (or total cost of the loan) made during the life of the loan can be reduced significantly. You’ll also be able to build up your equity faster. Use this free loan calculator (http://www.commercial-mortgage-guide.org.uk/calculator/) to see how the total cost of the loan reduces when the repayment period is shortened. A refinance loan can save you thousands in interest charges over the life of your loan.

4. Refinancing to Switch From Variable to Fixed Rates.

You can also refinance in order to switch from a variable rate loan to a fixed rate loan. The main reason behind this type of refinance is to obtain the stability and the security of a fixed loan. Fixed loans are very popular when interest rates are low, whereas variable rate loans tend to be more popular when rates are higher. When rates are low, you can refinance to lock in low rates. When rates are high, you may prefer the short term discounted variable rate loans to obtain lower payments. A major benefit to refinance is the ability to lock in a low interest rate for the duration of your loan.

5. Refinancing to Switch from One Lender to Another.

Some lenders offer better mortgage or loan deals than others. They may offer better customer support services, more flexible loan repayment terms or just a service that is more suitable for your needs. Refinancing your loan can allow you to drop your current lender and switch to a new one with a better loan or mortgage package.

You should carefully consider the savings you can make by refinancing against the costs and penalties. Any homeowner can refinance, but the point is to find a deal that will improve on your existing mortgage or loan. More articles about refinancing are available at: http://www.commercial-mortgage-guide.org.uk/refinancing/

© Copyright 2005, Bwalya Mwaba writes for the The Commercial Mortgage Guide. Visit our website for mortgage related news, articles, tools and more: http://www.commercial-mortgage-guide.org.uk/

This article may be reprinted as long as all the above links are active and clickable and this author box (byline) is not edited.

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How many times have you been in this situation? You’re enticed by a new credit card offer with an 8% introductory rate. You activate the card, start enjoying the new freedom… and then forget about it. Pretty soon, the 19% interest rate sneaks up on you… and before you know it, you’re $2,000 in the hole. With so many offers barraging us daily, it’s no wonder some people keep a running balance on as many as eight credit cards. A messy situation, but it’s nothing that can’t be cleaned up. Credit card debt elimination is possible for those who really want to make a change for the better. Here are some options.

Streamline your bills. Transfer all your balances onto one card with the best interest rate you can negotiate. All it takes is a couple of phone calls to a credit card company where you remain in good standing. You may be charged a fee for closing out your other accounts, but it’s still better than paying nearly 20%. Or, if your credit is still respectable, but you know you’re getting in hot water, you can apply for a bank loan and open a line of credit account - which only requires a minimum monthly payment and accrues no interest charges. Once you simplify your situation, credit card debt elimination is just a few payments away!

Promise yourself to pay on time. If you don’t own a calendar, buy one tomorrow. Mark down the days when bills are due, and place the calendar where you can see it. Are you married? Consider handing the responsibility of bill-paying over to your spouse. Sometimes the fastest way to total credit card debt elimination is by passing the buck to someone who’s a bit more disciplined!

If you’re in serious financial dire straits, look into debt settlement programs, which take hardships such as divorce into account. Non-profit debt consolidators can help you with credit card debt elimination by reducing your interest rates, simplifying your bills into one payment and then charging you a fee… but you’re at the mercy of their payment schedule, and being affiliated with one may in fact damage your credit.

Finally, reassess your budget. There are so many ways to pinch a penny… from ordering less takeout to skipping that morning trip to Dunkin Donuts… from coupon cutting, to cutting out shopping sprees. With the right mind set, you CAN live a more frugal lifestyle. Credit card debt elimination is something that’s elusive to many - but it doesn’t have to be! Consolidate your debts, take control of your spending… and then take control of your life.

Dina Giolitto is a New-Jersey based Copywriting Consultant with nine years’ industry experience. Her current focus is web content and web marketing for a multitude of products and services although the bulk of her experience lies in retail for big-name companies like Toys”R”Us. Visit http://www.wordfeeder.com for rates and samples.

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Income

To contribute to a Roth IRA, you must have compensation (e.g., wages, salary, tips, professional fees, bonuses). Your modified adjusted gross income must be less than:

$160,000 - Married Filing Jointly.

$10,000 - Married Filing Separately (and you lived with your spouse at any time during the year).

$110,000 - Single, Head of Household, or Married Filing Separately (and you did not live with your spouse during the year).

Age

There is no age limitation for Roth IRA contributions. Unlike traditional IRAs, you can be any age and still qualify to contribute to a Roth IRA.

Contribution Limits

In general, if your only IRA is a Roth IRA, the maximum 2005 contribution limit is the lesser of your taxable compensation or $4,000. For individuals age 50 or older, the contribution limit is $4,500

The maximum contribution limit phases out if your modified adjusted gross income is within these limits:

$150,000-$160,000 - Married Filing Jointly

$0-$10,000 - Married Filing Separately (and you lived with your spouse at any time during the year)

$95,000-$110,000 - Single, Head of Household, or Married Filing Separately (and you did not live with your spouse)

Contributions to Spousal Roth IRA

You can make contributions to a Roth IRA for your spouse provided you meet the income requirements.

When to Make Contributions

Contributions to a Roth IRA can be made at any time during the year or by the due date of your return for that year (not including extensions). Roth IRA contributions are not tax deductible and are not reported on your tax return. On the other hand, you do not include in your gross income, and therefore are not taxed on, any qualified distributions or distributions that are a return of your regular Roth IRA contributions or that are rolled over into another Roth IRA.

The Roth IRA is an incredibly valuable retirement vehicle since distributions are made tax-free. If you are considering retirement planning, make sure to investigate the Roth.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

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