Archive for category Credit and Debt
The iPhone Credit Card Merchant Account Market Heats Up
Posted by admin in Credit and Debt on December 11, 2009
Many small business owners are put off by the costly and bulky credit card processing equipment that is required to swipe customer’s credit cards on the go. A number of new company’s are using one of the hottest consumer products ever, the Apple iPhone, in a unique way to address that very problem.
Companies like PAYware Mobile and Square are launching new mobile payment services that turn an Apple iPhone (or other similar smartphone) into a credit card processing machine with the use of an external card swiping dongle.
There are a number of Apple iPhone applications like iSwipe and iTouch2Pay that attempt to solve the same problem but Square and VeriFone’s PAYware Mobile are among the first to attempt to retrofit a merchant’s phone to turn it into a handy dandy portable credit card processing machine.
Fees for using the new mobile phone payment services range from approximately $30/month and 17 cents per transaction for PAYware Mobile to a yet to be determined pricing model from Square. When additional information becomes available from Square it will be easier to compare Square with PAYware Mobile.
The Square mobile payment service was launched by Jack Dorsey, the co-founder of the popular online messaging service Twitter, and early investors have already pegged the valuation of Square at $40 million before the service has even officially launched.
What Are The Consequences of Filing Bankruptcy?
Posted by admin in Credit and Debt on December 10, 2009
When you’re thinking about filing bankruptcy to deal with your debt problems, it is essential that you know the consequences of doing it. This article gives you some idea. Once you file for bankruptcy (be it Chapter 7 or Chapter 13), it blemishes your credit report and stays there for a period of up to 10 years. Hence, it is important that you gather comprehensive information about bankruptcy before going for it.
If you have filed for bankruptcy, the lenders would be leery about offering you a loan because of your spoiled credit rating. You would have difficulties to qualify for a mortgage. Even if you qualify, you would be asked to pay a significantly high interest rate.
You might be refused by an insurance company if you approach them for buying insurance. Your poor credit rating might hinder you from getting a job.
There is one more negative aspect of filing bankruptcy that hurts you. The social stigma related to filing bankruptcy is immense and can create a lot of depression in you.
Filing bankruptcy is detrimental for your credit report in different ways and it stops you from getting various financial benefits.
Because of the detrimental effects of filing bankruptcy, finance professionals advise that it is always prudent to deal with your debts before they go out of control. If they are at a controllable level, try to pay them off either on your own or through professional help. There are various alternatives to bankruptcy like debt settlement, debt consolidation and debt management. Choose the option that suits your financial situation.
Solutions for Being Upside Down on a Car Loan
Posted by admin in Cars, Credit and Debt on October 20, 2009
If you are upside down on a car loan you’re probably scared and a little freaked out, but fear not – lots of other consumers are in your shoes. Being upside down on a car loan simply means you owe more on the loan than the car is worth.
Given how quickly cars depreciate, it’s not difficult to get upside down in a variety of situations. Many consumers get to this point and don’t even realize it until they try to sell or trade in their car and discover that their loan balance far exceeds the value of the car.
Owing more than your car is worth is not necessarily a problem if you plan to keep the car throughout the period of your loan. But if you need to sell or trade it in, you’ll need to deal with the loan. Here are few options for what to do if you are upside down on a car loan:
Roll your old loan into a new car purchase. Some car dealers will allow you add the unpaid principal of your old car loan into the loan for a new car. You would, in effect, be paying off two loans. As you can imagine, this gets expensive and is not recommended, but if you have no other options then it may be worth exploring.
Refinance your car loan. While many people refinance home loans, not as many know that you can do the same for car loans. If you bought your car a few years ago you might find that interest rates now are much lower and you can save on your monthly payments. Just be sure that your current auto lender allows prepayment of your loan.
Make extra payments. You can pay down your car loan fairly quickly by making larger payments each month, but be sure that your lender has agreed that extra payments will go to pay down the principal owed.
Use a home equity loan to pay off your car loan. If you have access to a home equity line of credit, you can probably pay off your entire car loan at once. The advantage is that you immediately get yourself out from being upside down on your car loan and have 100% ownership. Repaying a home equity loan can also have tax benefits, so check with your accountant.
Should You Use A Home Equity Loan to Pay for College Expenses?
Posted by admin in Credit and Debt, Mortgages on September 18, 2009
Using a home equity loan can be an excellent way to pay for your child’s college education. A home equity loan taps into the equity that your house has built up over the years.
If you purchased your house several years ago you have probably been paying down the principal and (hopefully!) your house has appreciated in value. The difference between how much your house is worth and the amount of praincipal you still owe on your mortgage represents the equity you can tap into. A bank will also look at your ability to repay the loan when determining how much to lend.
Home equity debt comes in two flavors. A home equity loan is generally one lump sum with a fixed interest rate and repayment schedule. A home equity line of credit (called a HELOC) acts more like a credit card account – you are only charged for the money you draw down from the account.
Either home equity loan type can be appropriate for funding a college education. The biggest advantage to using home equity loans is that, in general, the interest you pay on this debt is tax deductible.
Home equity loans should not be your first choice when paying for college, as there are more suitable programs like student loans and various federal program available to help you with the cost. But if these other sources are not providing enough, think about tapping into your home’s equity.