Wednesday, 6 August 2014

If you have RAC or Budget insurance – you may be overpaying

It has been discovered that hundreds of policyholders who are currently customers of RAC and Budget insurance – or have been customers in the past – may have been paying around £50 per year for unwanted products because they didn't un-tick a box which offered a free trial for personal accident cover.

Those policyholders affected bought insurance products between April 2009 to the end of May 2013. When they signed up to the product, they were given the opportunity to have free personal accident insurance for six months, but after that they were automatically charged £3.99 every month, often unknowingly.

The companies were using a pre-ticked box on the policy application form and have since announced that they stopped using it at the end of May 2013. There are still however  a large number of customers who are still paying the money every month and just don’t realize – even if they aren't currently customers of RAC or Budget.

The EU banned the use of pre-ticked boxes for most online product in June 2014 and the Financial Conduct Authority is set to ban them for insurance products by the end of this year.

Am I affected?

If you hold – or held – an insurance policy with either Budget or RAC between April 2009 and 31 May 2013 you could be affected unless you can remember that you un-ticked the free trial box. If you didn't and you haven’t cancelled the cover, there’s every possibility that you’re paying for personal accident cover you don’t want.

The way to find out if you have been paying is to have a look at your bank statements and check for any debits in the name of Avon Insurance as this is the company who was the original underwriter.

I have been paying for cover I don’t want – what do I do?

You need to cancel the cover immediately. Telephone Avon on 01789 415 050 and tell them you don’t want the cover. You may need to have your policy to hand to give the details of it so they can match the query with the policy. Their details should also be included with your RAC or Budget policy documents.

As this has been unwittingly costing customers around £50 each year, you could have been experiencing a shortfall in your monthly budget so to get back on track over the next few weeks, firstly make the call to Avon and then look to take out a small payday loan at

Can I claim back money I've already paid?

If – like many current and previous customers you didn't realize you’d been opted in to something you didn't want, request a refund from RAC on 0800 015 6000 or Budget on 0844 412 2118 and tell them you’re unhappy with the situation and that you want your money returned.

If they don’t agree on the strength of a telephone call, write to them and include the bank statement which shows the first ever payment which was taken. If you don’t have the statement, your bank can help with this.

If there is still resistance to a refund, you can then take it as an official complaint to the Financial Ombudsman service. This is free and is the organisation which settles disputes between financial companies and individuals. Don’t contact the Ombudsman until you've first spoken to RAC or Budget and have given them 8 weeks to reply as these are the official guidelines which must be followed.

Many however aren't having to go this far; reports are that money is being successfully refunded as soon as a complaint is made so if you find you've been subjected to these unwanted payments each month – act now.

Wednesday, 9 April 2014

Credit cards – Are the low interest ones really helpful for you?

Credit cards are said to be a great way to make your purchases.  Do you know the concept of using credit cards? Well, it means buy now and pay later. So, even if you do not have hard-cash, you can buy your necessities by swiping the plastic money. However, you should make it a point to pay off the card balance on time. You need to know that the banks are always there to make money from your credit card dues. It is important that you know everything about the credit cards before you get one for yourself. You also need to know which credit card is the right one for your need.

 Can you make your purchase with plastic money?

Are you not able to manage with your salary? Do you think you need more money for buying the necessities? Well, if so, then you can make all your purchases by swiping your plastic money. However, you should pay off the card balance on time. If you fail to do so, then you will fall into credit card debt, for sure. The interest rate may go beyond control if you do not make the payments soon. As such, see that you do not spend beyond your means.

Is lowest APR really the best?

Read on to know some tips that will help you to take the right decision in choosing your credit card. Amongst the customers who apply for APR, only half of them get the advertised APRs. You may search with the terms such as “average” and “representative” in the advertisements.

The card companies will assess your credit rating before providing you with a credit card. As such, you should make it a point to check your payment record before applying for APR. This will reduce any kind of risk in getting low APR card. You should be careful when you select any credit card due to free add-on rewards with them. You’ll have to spend bucks in order to be eligible for those cards.

You should make it a point to pay for your purchases every month. Also, you should make the loan payments at the right time. In case you fail to do so, then you will have to pay the penalty for it.

How will a credit card provide you help?

Credit cards have several advantages and this is why, they are so popular. If you've unexpected expenses, then a credit card is all you need to manage it. It is advised that you use your credit cards smartly so that you may not incur debt unnecessarily. You will also be able to maintain good credit score. In case you have lost control and damaged your credit, you can always consider poor credit installment loans for emergency cases. Borrowing money from the others is not at all good. If you are thinking to purchase your home, then you will need to take out a mortgage loan. However, you must have good score in order to apply for a loan. If you do not have any score, then you won’t be able to get a loan. Thus, choose a credit card which can help you to build good score, provided you use it in the right way. Make sure you choose the right APR according to your requirement.

Tuesday, 11 February 2014

Forex Trading for Beginners

Finding a Broker

One of the biggest decisions you will make as a beginning trader is deciding which broker to use. If you search the Internet for online Forex brokers, you will quickly be presented with a long list of options. However, policies and quality can vary greatly between brokers, so it is important to find the right broker for your situation.

When you use an online broker, you want to be assured that your personal and financial information is secure. This is one of the many reasons why it is important to choose a broker that is well-established, consistent and respected in the financial industry.

You can ask other traders for recommendations, read online user reviews and do your own research to find the broker that is right for you. 

Today's top brokers, such as NetoTrade {Arabic: نيتوتريد}, will also help you learn about trading and how the market works. When you open a NetoTrade account, you can practice using the demo account feature. You also have access to the site's glossary, tutorials, market updates and other helpful tools. 

Developing a Trading Strategy

After you open your first Forex account, you will be excited to start trading. It can be tempting to jump right in and start making trades, but you can increase your chance of success by taking some time to research and learn first.

Take advantage of NetoTrade's educational tools, and don't be afraid to ask questions when you do not understand something. Customer service representatives are available to help online or over the phone.

Some systems give a 100 percent guarantee that you will earn money quickly through Forex trading. However, you should be wary of these types of promises. No one knows exactly what will happen in the market tomorrow, next week or next month, so guarantees are impossible.

Instead of trying to find a quick path to wealth, use your knowledge and experience to develop a trading strategy. This does not have to be anything complicated. It is simply deciding the level of risk that you are comfortable with and the types of trades that you prefer to make. 

Adapting to Market Changes

Once you develop a trading strategy that works for you, it is exciting to be a part of Forex trading. You will enjoy the excitement of the trading process as well as the increased balance in your account from successful trades.

However, you should never get too comfortable with your trading strategy. Forex trades currencies from around the world against each other. Therefore, your trades could be greatly affected by events that take place on the other side of the globe.

For instance, the market in the Middle East has been thriving in recent weeks. This means that traders have found success trading currencies against Middle East currencies.

If you do not keep up with current market conditions, you will miss out on the opportunity to make some lucrative trades. Reading a daily market report is a great way to stay informed without having to spend a lot of time researching. Make a habit of checking the reports every day, and before long, you will be able to spot trends and opportunities in the Forex trading market.

Saturday, 25 January 2014

Tips to avail low interest rate for an Investment property

Every one wishes to save some dollars and yet enjoy life to the fullest. Among the many investments there is one very important and popular among our citizens is property investment. But the interest rate has been the hurdle every time. However there are ways to get a low interest rate on an Investment property. FHA aka Federal housing administration promotes homeownership through the traditional lending measures to people who have a low debt-income ratio or people with not so high credit score etc. They lend their shoulders to the housing market by providing a cord line of financing to people with low home equity. Now we need to know the requirements for achieving a FHA loan to invest on a property.
Any mortgage lender would tell you that FHA loan is for primary residence only, but this is just part of the story. To be very specific there are two exceptions:
1. Rental Property: Exceptions coming under the following scenario will obviously score high in any test. Suppose, a house was purchased and the owner resided for a year and later on purchased a different home and shifted his primary residence with renting out the first home since then. If ever the property had been the primary residence and the loan was an FHA-insured mortgage, the actual property could be refinanced with the help of an FHA loan.
2. Second Home: Alike the above exception, if the case was as such where a home was purchased and the owner resided in for some time and the loan on the property was an FHA loan. While residing in the property, the owner shifted on to a new property by purchasing it and has turned the first home to a second home who can be used as a vacation property as well where family and relatives could gather couple of times round the year.
The prime factor in both the cases is that the property needs to be the primary residence previously and it has to be attached with a current FHA loan. A consumer having the above criteria will also have the benefit of refinancing the loan with the aid of FHA Streamline Refinance Program. However, payment-reduction refinance will be an acceptable but you won’t have the facility of cashing out.
Do look out for Current FHA Mortgage Insurance premiums
Each and every consumer should keep themselves informed about the changes that take place. The market keeps changing and presently FHA has increased the mortgage insurance premiums and that is the reason FHA streamline refinance has become less popular among people as mortgage insurance premiums are comparatively higher.

The procedure of FHA is that they charge an upfront 1.75% mortgage insurance premium loan amount which is amortized over the term of the loan. Furthermore, there is an additional monthly mortgage insurance premium that is based on 1.35% of the base loan amount on an annual basis. To be precise about the base loan amount it is amount at the stage before financing of the upfront mortgage insurance premium.

Suppose you are in need of money for some personal reasons and you take a loan of $400,000. Now with the upfront mortgage insurance premium, the complete loan amount will be 407,000 as said earlier that FHA charges an upfront 1.75%, 1.75% of 400,000 would result to $7000, and it is refinanced over the term of the loan. Along with this would be the annual rate of 1.35% of the base loan amount, which in this scenario would stand to $5400 a year and you have an additional $450 monthly mortgage insurance payment.
Deals associated with FHA Streamline Refinance
It’s always essential for you to keep track of mortgage rates and information’s associated with it and its associates. And for that very reason you should know that there is a loophole in an FHA premium. Although your property is an investment property or second home that at some time had been your primary residence, you still could avail the benefits of a lower FHA Streamline, if you took out the original mortgage before 31st May, 2009.

Then there are other scenarios that clarify the picture of rates changing very often. The upfront mortgage insurance premium drops to just 0.01% of the loan amount and the premium paid monthly is 0.55% on an annual basis of the base loan amount. Keeping in mind our example given above explaining the overall scenario, these numbers keep changing. The upfront financed fee may drop to $40 and the premium paid monthly might have a drop down of $183 which seems quite attractive in case of a secondary home or an investment property if you are thinking of one among these.

This loophole would apply to cases where your house is the primary residence and you are willing to refinance. Also, the terms of the mortgage insurance in this particular FHA loophole does not change with the status of occupancy.

Scenario for FHA Mortgages in case of Two Homes

You must know that if you wish you can have two FHA mortgage loans at the same time.

Do you wish to use FHA mortgage to buy another main residence? If your answer is yes then here are a few scenarios in which you would be considered for a second FHA mortgaged property and they are as follows:
1. The new property is outside of a sensible drive time from the separation of your present essential home.
2. Your developing family makes the requirement for "additional house."
3. You're leaving from a mutually claimed property with an alternate gathering.

Wednesday, 15 January 2014

10 Promises you can make this New Year to save money

New Year brings over revelry and new beginning. This is the time when people make new promises and take resolutions to achieve something important, which may change their lives for good. So, why should you not make some promises, if it can change your life for good. However, you will have to make sure that you take the right resolutions which you can actually go on to follow. Furthermore, you will also be required to make sure that you do not take any resolutions just to show or follow others. Making a few promises to yourself this New Year, can actually help you save money and improve your finances.

What it means being resolute

If you can stay firm and resolute on your promises, you will be able to achieve quite a few important things. So, you will have to:

Set-up some important financial goals - In order to achieve so
mething you need to make a plan and follow it. Without that it may not be possible for you to act wisely and follow the right path. So, if you are taking some financial resolutions, make a plan based on what you will have to do and how much you will be required to save.

Learn how to say no - You will have to learn how to say no. Yes, this is one of the most important resolutions which you will have to take if you want to save money and stay away from debt, this New Year. You will not only be required to say no to others, but also to yourself. If you are craving to get something which you simply fancy, say no to yourself.

Make larger and more than one payment - Rather than making minimum and a single payment on your debts, promise that you will be making more than minimum payment and more than one payment in a month. This will help you pay off debts fast, and thus save more money in the future.

Try and borrow less - You will have to try and borrow less or simply do away with borrowing. This is because, when you have too many debts most of the money goes toward making the debt payments. This can help you in using most of the money towards saving money.

Buy only if you have cash and affordability - Promise yourself that you are going to buy things only if you can afford to buy it and only if you have enough cash. Stop using credit cards to buy anything and everything.

Negotiate for less - If you have been planning to negotiate with your creditors, lenders and insurance providers for lowering the fees and changing the payment terms, do it now. This is the time take resolutions and so complete this task by the first month of the New Year.

Opt for automated payments and savings - Try the automated savings and payment tactics. This will help you a lot, as the money which will be credited to your salary account will immediately be moved into savings accounts and go towards the other debt payments. This ensures that you save more and avoid missing payments.

Chuck unused accounts - If there are quite a few unused accounts, it would be important for you to close down those accounts. The less accounts, the better it is as you will have less credit cards to use and fewer credit card debt too. However, avoid closing all of the accounts at the same time.

Exercise and stay healthy to save more - Exercise and stay healthy so that you do not need to spend lots of dollars on medical treatments. The cost of treatments and medicines are so high that majority have problems in managing the cost of medical treatment. Therefore, most are required to borrow money which again becomes hard to pay off. However, if you can go on to maintain your health, you may not even be required to borrow money for health related treatments.

Try Military Saves Week - People take resolutions during the New Year and so the will stay strong in the first month and may be the second. After this, the will power starts fading and if this is the case with you too, you can take part in the Military Saves Week. This can help you stay put with your savings plan.

The above are some of the promises you can make to yourself, if you want to save more money this New Year and avoid debts as much as possible.

Sunday, 29 December 2013

9 Ways to build up a concrete financial position in 2014

With new year 2014 approaching quickly, we should start taking new resolutions to improve ourselves. That may could range from learning piano to perform better in your class or be the best performer at your working place. However, its a known fact that resolutions give results only when you are stern in your resolutions and stick to it. One important aspect that helps us to live better is obviously our financial planning and we need to break our old habits of managing finances this year for a more better and concrete financial base.

There are many ways that would be favorable this year for you to practice to boost your financial obligations, but I decided to share a few tips that are non-obvious yet beneficial for those who are stern to make a change in their financial condition.

Feel confident about managing money: Its necessary to believe in yourself before you start doing something. If there are matters in the past related to managing money that makes you feel guilty then you better shred off such feelings. What you need is to just look back and check the faults previously done and do not repeat the same. You need to understand your financial obligation by understanding your financial inputs and outputs. Its not only about what you earn its also about your expenses and you need to keep track of both to have the control.

Design your own financial plan: If you are not yet sure about your financial goals its high time you set one. Having a goal will help you work out in a proper path. Before fixing your goals you need to grab a pen and paper and know your present financial position so that you can take steps for future. Furthermore, I would suggest you to think big no matter if they seem impossible as its never bad to think big and chase it.

Time to get out of pitfalls: To chase your dreams you need to have a good financial backup and position. In case you are overloaded with credit card debt or you have a bankruptcy filed, you need to create a positive financial planning to get rid of them. Once you are out of such pitfalls you can chase your dreams properly with no unnecessary headaches. And be sure to keep your goals in front of your eyes, maybe a note on the wall or a note on your desk. Its a good way to stay focused on your resolution to achieve your goals.

Boost your savings rate: Two most popular and practiced ways of increasing savings rate are diverting your paycheck to pre-tax retirement accounts or by managing a post tax savings account. These tactics of automatic savings are the easiest ways to create a financial backup. The more you save the more secured you will be in future. This financial planning is important for every house hold in modern times.

Keep checking on your insurance policies: Its very important to know your policies. Insurance policies keep changing depending on deductible amount, or rental coverage or other important points and if you are not acquainted with your policies you might be surprised when you would approach for coverage after any accidents. Proper knowledge will help you deal smartly in times of a mishap.

Put on your gears for the rising interest rates: Interest rates can rise anytime and it is what financial advisors also believe. Although it has been low after the Great Recession, yet we never know when it rises again. It would be great if you could pay off your debts, opt for refinancing if you don't have one. First time homeowners could avail the benefit of rates still low.

Find out ways to reduce your taxes: There are several ways for every individual to reduce their tax bill. If you are unaware about the ways then you could give it a start by investments in municipal bonds etc. Try to avail any chances that you get to save money wherever you can. Ultimately, it would be beneficial for you and hence keep yourself updated about any new information regarding tax or other financial features that are mingled with our day to day life.

Use the option of a Kick starter: It is not only celebrities who use Kick starter to finance their projects. There are instances where an entrepreneur who is not even recognized by many have launched their products on the sites and have been able to reach their targets. They advice sharing their projects with friends and associates to get a strong link up from social media platforms or a create a concrete video of your projects and promote it.

Share your ideas with your partner: If there's no happiness in life, there's no use of having lots of money. And speaking about happiness, finances comes first in line. It can cause unnecessary differences among you and your partner and trust me I have seen couples falling apart for weak financial position. Always be honest with your partner regarding your finances and discuss how you both can work out a better financial planning. Give him/her the scope to present their views and listen carefully giving importance to their views and sort out any differences in ideas you confront. Finally, you could set your journey together to achieve the desired financial goals.

Follow the above discussed tips and strengthen your conceptions about building a strong financial background. If you haven't yet started planning you can start now as it is better late than never. Only few days are left for new year so start designing your own financial plan today to prove your financial obligation and build a better future for tomorrow.

Wednesday, 25 December 2013

Tips to avail the benefits of the After Christmas sales

Do you really want your friends to call you the smartest shopper? Well Christmas is nearby and I have already started planning for shopping utilizing the sales after Christmas. It would be best to go out the next day after Christmas when you can bargain and stores are ready to negotiate on the price.

If you really wish to avail the after Christmas sales benefits you need to plan in advance and work out accordingly. I would like to discuss a few points which is very important to perfectly plan and act:

Decide the items: When you are willing to use the post Christmas sales, you need to decide which items you really need or want to purchase. It could be an electronic appliance or a winter suit that would go well with the season.

Create a list:
Its always beneficial to write down items while shopping as it will help you concentrate on the things that you are willing to buy. Without a list you would definitely get confused once you step in the stores as you will be tempted to buy many items that you could see. Its better to shop whats on the list and stop when the list is complete.

Have an idea of expenditure on the items to be purchased: You need to have an idea of the prices at different stores and a proper homework does help if you do a market research in advance. There could be a huge difference in the bargains as some stores might take 40% off whereas a few stores might end up with only 15%.

Clarify doubts before you shop: There are certain items that you get in the market which could be purchased if it were available in full price. Hence you might also shop those items ignoring the fact that there won't be any satisfaction in reality.

Watch for the compatibility with the return policy: While availing the after Christmas sales we miss out an important issue of return back policy. Few stores do not have the facility to return back items or no cash back when returning. Its obviously good to opt for stores who have a return back policy.

Utilize the newspaper: The local newspaper is a great place for you to know about the available bargains and what you could also do is cut off the coupons made available through newspapers and utilize the offers. The paper on Christmas Eve would be best suited for such offers and informations.

Shop for upcoming festivities: This is the best time when you could shop early for upcoming festivities, birthdays, anniversaries etc. The only thing you need to look after is that your expenses don't exceed your budget.

Avoid disaster while enjoying the benefits: Don't fall into debt in the craze to grab the benefits of after Christmas sales because our intention is to save money and not fall into debt. Furthermore, you should also keep in mind that if you are in debt, the interest will be increasing day by day and will ruin your life. If you could not shop all the items you desired you could have a break and wait for the other sales that are available all through the year.

Keep checking for on-line auctions: Once Christmas is over you should watch out for auctions where people put up items on sale. Although we are well aware of the famous and popular site Eba for auction purpose but other search engines might also be useful like Google and Yahoo.

Enjoy what you are doing: It might happen that you miss out on some items and you watch others having the same. I know its a bit sad but do not be disheartened. Some other day you could grab hold of the same item maybe at a much better price. And do not be grumpy as you have to rush through the crowds do the shopping.

Shopping cleverly can help you support your wallet and family and this perhaps is one amongst the most effective manner. Be smart in shopping and you will able to save a lot.

Have a merry Christmas.