Archive for September, 2007

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Credit Card Companies Going Bankrupt?

Tuesday, September 11th, 2007

All reports show that there are major defaults in home loans. Reports now are also trickling in about credit card payments delinquency at an all time high. If most people stop making their payments then it could happen that credit card companies may go bankrupt. It is a scary thought but something maybe we should prepare.

It should not surprise any one of us. Credit card companies, like their home loan counterparts have been selling a pipe dream ‘You deserve everything – and get it NOW – you should not have to wait to earn it”. This is the mantra under which credit card companies have been pushing the concept of ‘charge it’, ‘charge it’ and then charge some more. In their short sighted view they just want to get everyone to be in debt to them so they can make hefty finance charges anywhere from 10-32%. And if you default, they make even more money in fees.

So they have got everyone living large. Spending beyond their means. Buying things they should not be and in most cases don’t need it. They buy so much that when their closets fill up then they rent a storage place to keep their stuff. And the whole spiral downwards begins.

What credit card companies forget is that the person taking the debt does not in reality have the capacity to own all this extra stuff. Doesn’t deserve these items in the first place. Let me explain. Whenever you take a loan you are in fact saying ‘I am willing to sacrifice my future earnings to buy right now’. But most people never budget the ’sacrifice’. They never save to pay the debt. In fact, some even think it is ‘free money’.

Credit card companies love such thinking but credit card companies do not realize that they have raised a culture of spend and forget. Once there is a slight correction in the market and the person loses their job, then he cannot pay anyone and the first to suffer are credit card companies.

America as a nation has become a ‘nation of debtors’. Our government is in debt to their eyeballs but tells us only a ‘rosy picture’ to keep us from panicking. The fact is the ‘emperor has no clothes’. As a society in general we Americans have become excessive spenders, living it large, no regard to future.

Credit card companies for their own good should stop easy credit. Otherwise they will see huge defaults and may take the company down.

If you have to have a credit card, get the lowest cost card at ‘Look up credit cards dot com’. Please use credit cards responsibly. It is your future at stake!

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How to Obtain Term Life Insurance for Life

Tuesday, September 11th, 2007

With all of our current medical technology and change toward healthier lifestyles, surviving until your golden years is more common. As you have worked a substantial part of your life building your family’s fortune, it is a good idea to put together an estate for yourself. Estates ensure that the distribution of your assets are properly handled and allocated according to your wishes. Whether your estate is of modest worth or whether it is in the millions, it is always a wise thing to consider putting an estate plan in place. Part of your estate planning should include a term life insurance policy.

While most term life insurance premiums are based on age, companies do sell what is called term life insurance to 100. Typically, you purchase this policy between the ages of 71-80. The premiums for term life insurance to 100 remain constant from the purchase date until you reach the age of 100. The premiums stop at age 100 but your coverage continues until your death, even if you live to be 125! Term life to 100 basically covers you for life.

Why Buy Term Life Insurance to 100?

Usually, people who reach age 70 have outlived the use of a basic term life insurance policy. If you have children, they are old enough to take care of themselves financially and your spouse would presumably have no need for the death benefit as your financial wealth has already been built.

Truly, then, buying term life insurance to 100 at age 70 would be solely to gift your family even further by making sure that any inheritance you leave to your relatives remains intact. The death benefit allots extra monies to help offset any taxes your heirs would have to pay on their inheritance.

Additionally, death benefits for term life insurance to 100 are paid tax-free. You will not only ensure that capital gains taxes are taken care of but also your funeral expenses and any miscellaneous fees associated with the estate and your death.

Last, should you outlive all of your heirs; term life insurance to 100 is also perfect for leaving a bequest to your favorite charity. You may purchase face value amounts of $10,000.00 to $1,500,000.00. If you choose to donate your death benefit to a charity, make sure to visit the charity to fill out all the appropriate forms.

As always, it is best to seek the advice of a reputable financial advisor to help you choose the best term life insurance company as well as type of term life insurance to 100 policy to suit your needs. Buying coverage for life will allow you the flexibility to gift your heirs or charities in many different ways.

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The Most Desirable Property

Tuesday, September 11th, 2007

What is the most desirable real estate? Each state has their own areas that they tout as “the best place to live”. These locations are not going to come cheap. I say that the most desirable real estate is not about location alone, but about opportunity and price.

One such category of desirable real estate property can be found anywhere and everywhere. It is the “foreclosure”. You may be thinking, “How can a foreclosure be desirable?” The term seems to carry a bit of a stigma. A foreclosed property can be an unearthed treasure when the right opportunity comes along.

Foreclosed properties are those where the borrower has defaulted on their loan with a lending institution. A default is typically defined as payments that are two or more months in arrears. The lending institution then has the option of taking back the property and reselling it to the highest bidder.

Foreclosed properties can also be those ceased by the government for one reason or another. These homes are not always the rundown houses that people imagine. Foreclosures can occur for any number of reasons to people in any tax or income bracket. They can be situated in any city or any neighborhood, affluent or middle class.

Because owners have the right to make back payments to the lending institution for a certain amount of time, it is best to pursue foreclosures when the borrower is out of the picture. If the home is a recent foreclosure, the potential buyer must deal with the seller when negotiating price for the real estate property. Certain disclosures must be made by an investment buyer in order for the final sale to be legal and uncontestable.

For the enterprising individual, a foreclosure can be purchased for the amount owed to the lender and resold for a profit. For someone looking to own a home, a foreclosure can present them with a lower monthly payment for more house than they could have gotten otherwise. As a residence, monies can be found to repair fixer-uppers that will fetch a higher price later on.

REO’s or real estate owned properties are those that are owned by the mortgage lender. The house has already been foreclosed and repossessed by the lender. The asking price for these real estate properties is sometimes less than the amount still owed.

An auction of the property did not yield a satisfactory price from the bidders. The lender wants to get rid of the property and will take the best offer. Since the seller is out of the picture, you will deal with the lender and their agent. An investor can purchase these types of properties for a great price.

Another type of foreclosed property is the short sale property. This real estate property is one that has been foreclosed, but not gone to auction. The lending institution will get less for the property than the seller owed which is a good deal for the buyer. The lender makes a deal with the potential buyer since they cannot get their money from the seller.

So, where is the most desirable property? It can be anywhere. Check national foreclosure listings for foreclosed and other distressed real estate properties in your area. As always, seek sound investment advice before purchasing any property.

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