Info NEX Finance

Finance is not merely about making money. It's about achieving our deep goals

Author: Melissa Johnson

Pay For College Without Loans

Plan A: A high school senior found her right-fit school, that is, it was the right size, the right lattes, the right ambiance, the right major, the right geography, the right mascot, and even a right financial aid package that left her struggling parents with an out-of-pocket expense of $14,500 at a $45,000-a-year school.

I say “struggling” parents because $14,500 was still hard to materialize, but they said they’d find a way, whatever that meant. But out of nowhere, a wrong-fit college sent the student a free application, and on a whim the student submitted it. The college came back with a student financial aid package that left the parents with a total out-of-pocket cost of $2,900.

A no-brainer, right? It’s now an easy decision to attend this college.

After the first semester, the student announces that she really doesn’t like her college and wants to be a student transfer. The parents are in a panic: the remaining three years of grants for college, worth a total of $75,000, are down the tubes. Ouch!

Almost spasmodically, the student applies to six private colleges in California, which are in the same league as the school she wants to leave, naively assuming …

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Personal Loans for Everybody

Many people don’t know but ‘personal loans’ is the generic term for all loan types. All loans fall under either one or the other personal loans category. Personal loans fundamentally are of two types – secured and unsecured loans.

Secured personal loans will like a security to be attached to them. The security usually is in the form of home but alternative collateral are also accepted. The loan amount with secured personal loans is usually more. You can borrow more at lower interest rates. The obvious drawback that everybody encounters is the loss of property if they fail to make repayments.

Unsecured loans do not require attaching any collateral. They are meant for everybody who cannot provide collateral, either by choice or compulsion. They take lesser time in being approved but are much favourable for lesser loan amounts. Everybody applying for unsecured personal loans will get comparatively higher interest rates. This is because no security is supplied for them.

Loan amount for personal loans:

Personal loans amount that can be approved extend from £5,000-£75,000. Everybody will be approved for have different amount. As secured personal loans, borrowers can get up to 125% of property value.

Loan term for personal loans:

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Collection Agencies

  1.  A flat fee.
  2.  A percentage of what is collected.
  3.  Through a direct sale of the delinquent accounts.

If you are trying to collect a small or medium sized debt, using collection agencies that charge a flat fee are probably your best option – collection agencies that charge a flat fee work just as hard to collect a small debt as they do to collect a large debt.

If you have just a few large unpaid receivables, working with collection agencies that charge a percent of the total debt collected is a wise choice. (usually 25 to 50 percent).

The third option, selling your uncollected receivables at a discount to certain collection agencies is advisable only if you have a very large amount of debt – usually $1 million or more. The selling price is typically a minuscule 2 to 8 cents on the dollar.

Most collection agencies use one of three tactics to collect debt:

  1.  Letters.
  2.  Direct contact via the telephone.
  3.  Litigation.

Typically, collection agencies begin the collection process by sending a series of notification letters, often called demand letters. The final notification letter generally warns the debt dodger that if the past-due account is not paid by a certain …

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Economic Payday Loans

First it is absolutely necessary to find out about the lending institution and how long they have been in business. It is wise to begin with the better known lenders. You will need to consider the fees and terms of this loan and just compare the rates among several lenders. The fees charged for these loans is usually a percentage of the amount you borrow, which is why you need to get the best one you can find. This fee has to by law be disclosed to you ahead of time. If a lender isn`t up front about either the fees or the terms, rule them out right away. This applies to whether you are looking online or in person. Before you sign or agree to anything, find out if the interest rate would change should you want to or be able to pay the loan back early. Some firms offer rebates for paying the loan back before the due date. Another important fact to find out about are any additional fees should you require an extension for the loan. The typical term for payday loans ranges from 5 to 30 days and usually coincides with your next payday. It`s …

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Credit Scoring Works

Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.

Your credit score and credit report is formed on the basis of your credit history and you need to have at least one account which has been open or updated in the past six …

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Principles For Debt Management

  1. Create an accurate assessment of your debt situation.
    Make a list, chart or whatever you’re most comfortable with, of all your debts. Be sure and include the amounts, interest rates, and expiration dates (especially on any no-interest for ## days type loans). Be sure and note any old accounts that you’ve got “laying around”, such as that department store credit account that you opened to get the 15% discount. You can now get a free credit report online. You should make sure that you’ve got a credit report and FICO score from each of the 3 national credit bureaus: Experian, Equifax, and TransUnion. The FTC advises monitoring your CREDIT REPORT activity ON ALL 3 BUREAUS. Under a new Federal law, you have the right to receive a free copy of your credit report once every 12 months from each of the three nationwide consumer reporting companies. AnnualCreditReport.com allows you to request a free credit file disclosure (ie. Credit Report) once every 12 months from each of the nationwide consumer credit reporting companies. This free credit report won’t include your credit score, but it does give you a consolidated list of your debts, a record of requests for your credit history,
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Low Interest Credit Cards

Contact Your Current Provider. Chances are the interest rate with your current credit card provider has been inching up for the better part of the past year. Whereas previously you could have had a 5% rate, the card may now be up to 8, 9, or even 10%. What can you do? Contact your credit card provider and ask for a lower rate. They can tell you no, at the risk of you going elsewhere, or give you a fixed lower rate. If your provider refuses to budge, see if they would consider a lower rate for a certain period of time, let’s say for six or twelve months. The added savings of the temporary lower rate can be beneficial especially if you have a big purchase coming up that you plan on paying off within 6 to 12 months.

Shop Around. Like most Americans, you probably are receiving solicitations in the mail for credit cards. If that is the case, find the plan that works the best for you and apply. Usually, a low introductory rate is offered as well as balance transfer options. If the card has no annual fees and no additional fees are assessed for transferring …

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Discharging Your Loan

The Obvious:

· If the student dies (death certificate required).

· If the student becomes permanently disabled.

Disability.

In the case of a loan discharge, the student involved must be permanently and completely disabled. This is also defined as being not able to work and earn an income due to an illness/injury that will most likely end in death.

It will pay you to check the laws in your state as these rules are continually being updated.

In some cases, only a conditional cancellation may be issued, this may last up to three years from when the student became disabled.

Another thing to consider is that if the conditions of the loan are not met, then the loan will revert back to its original state.

In either case, a doctor’s certification will also be required that will state the nature and details of the students illness/injury.

Closure

It may be possible to receive a discharge if the educational institution actually closes.

Other

It may be possible to also obtain a discharge if the loan was approved in spite of the fact that the student did not meet the requirements of the loan conditions.

Also, f the school does not meet …

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About Avoiding Credit Card Traps

First and foremost you must understand that using your credit card after you’ve received this notification results in your automatic “agreement” to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.

The most common modifications to credit card agreements include new APR’s (annual percentage rates), new fees and/or changes to existing fees, or a change to the grace period on your account. The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.

Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid. Credit card issuers will allow you to charge a small amount over the limit set on your account. However, don’t be surprised when you get hit with an “over limit fee”, usually around $35.00 or higher, on your next statement. Also, be prepared for your APR to be increased if you go over your credit limit.

You’ll also trigger an increase to your interest rate if you miss your payment …

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Dirty Tricks Credit Card Companies Play

The first one out of the some dirty tricks credit card companies play is also the worst of them: not posting your payment the day it was received. This is the oldest known trick: the company receives your payment in time but it doesn’t process it immediately; this delay will bring to the company a late payment fee. This is often due to legitimate reasons, but the policies of many credit card companies support a processing time that is not beneficial to you. A second trick is to make you pay late by changing the due date for your credit card payment. For being late the company will charge again a late payment fee and if the situation repeats for few months in a row they can legally increase your interest rate. The third trick played by the credit card companies is a ridiculous one: you can be charged a penalty fee for not using your credit card a certain period of time. As unbelievable as it might seem, this is a new tactic of the credit card companies to take your money. Another two tricks used are in connection with the client’s peace of mind. Both of them are …

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