Help Bankruptcy Blog

Credit card rates have always been an issue in applying for a credit card. These rates are what everyone should know before choosing a credit company from another. Shopping around for the best rates will give you the best deal.

For you to own a credit card, you should first know what are credit card rates? What is an APR? What are the different kinds of rates?

Credit card rates are used to measure the interest of your credit card. It is used to know how much you would pay if you hold a balance on your account, if you have a cash advance or loan, and if you transferred a balance from other credit cards. The credit card rates are usually computed annually.

1) APR. The APR signifies the annual percentage rate of the interest. The APR is used by the bank to know how much would be charged on your bill for a yearly basis. There are two kinds of APRs:

* Fixed. This kind of APR is an interest rate which has been arranged by the bank. The fixed APR would not be changed unless the bank or the credit card owner would amend the contract of agreement. Majority of credit card accounts that has fixed rates does not change often.

* On-going. This kind of APR is a kind of interest rate that could change even after the signing of contracts and the grace period.

Note: Both the fixed and APR rates would depend on consistency of the bill payments, if you would request your APR to be changed either lower or higher and if certain government provisions was made regarding the annual rates of your credit card.

* Special APRs. These kinds of annual rates would depend on the contract you have signed. If your terms specify a penalty APR when you would not be able to pay for your bills, this kind of rates would apply.

2) Interest rate.

* Fixed. A fixed interest basically means that your rate cannot be changed unless the bank informs you that there have been some changes in the policies.

* Variable. A variable interest rate changes automatically whenever the basic rate of the bank increases or decreases.

Note: Both the fixed and the variable rates could be changed by the bank anytime. This means that any bank could alter the terms and conditions of your credit account for a fifteen-day notice.

creditcard

Baby you could drive my car
Yes Im gonna be a star
Baby you could drive my car
And maybe Ill love you

These lines from the John Lennon and Paul McCartney collaboration during their post-Beatles days perfectly captured the publics fascination with cars. Cars have become more than mere objects of convenience and transport. They have emerged as status symbols in a society where success is generally gauged by what you own. Social commentaries aside, cars are one of the most practical purchases you could make with your hard-earned money. Imagine the sheer comfort of having your own ride to take you to the places where you have to go and you want to visit and youll instantly realize why cars have become such desirable possessions.

Additionally, cars are guarantees that we could go where we have, and where we want, to go at any given time. This is especially important in cases of sudden emergencies that demand our attendance.

Aside from owning a home, it has become a dream for most people to own a car. For many of us, having our own car is a validation of how much we have achieved in our lives. This is probably why most car owners have developed quite a sentimental attachment to their vehicles.

Much as how desirable it is to own a car, however, not everyone could afford the same. The cost of purchasing a car, and the cost of maintaining one, isnt really something that just about anyone could easily accommodate. There are other financial demands that need our attention, after all. And purchasing a car can jeopardize these.

Fortunately, car loans can always be availed of. Car loans are borrowings that are especially made for buying a vehicle. And though you could apply for a car loan in a bank, a lending institution, or the auto dealership itself, applying for a car loan through online channels has become a very popular option for many, many people.

The reason behind this is quite simple. Online car loans are easier to acquire. You wont even have to leave the comforts of your own home to apply for one. Everything would be processed with digital efficiency and speed.

You would be presented with hundreds, if not thousands, of car loan offers online. Its just a matter of choosing the best one for your needs. Here are some tips that would help you decide on the perfect car loan that would fetch for you the car of your dreams.

* Consider the applicable interest rates. Sometimes, because of our eagerness to own a car, we accept the first offer that is presented to us. This shouldnt be the case. We should always remember that a loan is a loan, it has to be satisfied eventually. Owning the car you want is only the start of the obligation you have to undertake. So make sure that the loan be laden with interest rates that would be beneficial for you.

* Consider the incidental fees as well. Some loans have other fees conditioned on the processing of the same. You would want a loan agreement that only has a few of these.

* Consider the maturity date of the loan. Would it become due and demandable after a period that would be amenable to your budget? This factor really depends on how you would want to satisfy the said loan. Would you want small monthly installments spread out over a longer period of time? Or would you want substantially priced installments for a shorter payment length? A prior perusal of your budget and a determination of how it would fare in the coming months are essential in knowing the payment scheme that is right for you.

A car loan would most definitely fetch for you that vehicle youve been longing for. But it is not something that you should engage in impulsively. Much care must be observed in deciding to avail of a car loan, and in choosing the one that would serve you best.

financials

Celebrate Grandparents’ Day by planning to beat the taxman 
WITH more and more people being drawn into IHT, care is needed to avoid leaving your family a heavy burden.

Color of Money Book Club 
Author Chris Balish will join Michelle Singletary for a discussion about his book, “How to Live Well Without Owning a Car.”

Arts council director resigns 
After 13 years with the council, the former director has left to become the city’s first public art coordinator. Susan Jennings, for 13 years executive director of the Arts Council of the Blue Ridge, has resigned to become Roanoke’s first public art coordinator. “I’m looking forward to a new challenge in my life,” Jennings said.

budget

The NEW Roth 401k Plan

There’s a new retirement plan soon to be available. It’s called a Roth 401k. President Bush brought this about in his 2001 tax cuts. This is a combination of two retirement funds - a 401k and a Roth IRA. But what does it mean?

Your 401k plan is pretax money set aside to grow as an investment. Your employer takes pretax money out of your check and allows you to direct the funds usually into mutual funds. 401k’s have another advantage - since it’s pretax money you take out of your check, your net pay is lowered, reducing the amount of taxes you pay. When you retire, then you draw out of your 401k what little you need and pay the taxes on it. When you retire, your income stream is gone, and so is your tax bracket. As you draw out your money from your 401k, then you hopefully enter a relatively low tax bracket and pay little on the proceeds.

Did you know there is approximately 10 trillion dollars tied up in IRAs and only 3% of those dollars are self-directed in a manner which allows them to purchase non-alternative assets such as real estate and gold?

In order to understand how much 10 trillion dollars actually is, it is greater than or equal to every dollar that changes hands on an annual basis throughout the entire American economy. I am sure you would agree that this amount of money is absolutely staggering.

Many IRA holders are rolling over their IRAs to purchase alternative investments such as real estate, businesses, franchises, real estate notes and tax liens. A straightforward IRA or 401(k) rollover expands your investment opportunities and can be done without taking a taxable distribution or incurring penalties.

Is this a new thing?

For many yes, however the ability to self-direct an IRA to purchase non-traditional assets has been around since the creation of ERISA 32 years ago in 1974.

Why haven’t you heard about this?

Most investors are in the dark for 3 primary reasons.

1) Many investment advisors are not trained in alternative investments. They are trained to sell products such as stocks, mutual funds, bonds and publicly traded REITs.

2) The National Association of Realtors (NAR) did not embrace the changes to the tax law, Wall Street did. However NAR has been happy buying and selling homes with traditional bank financing without the need to tell their clients that they could truly diversify their IRA portfolio by including an investment property.

3) There is tremendous amount information mishmash on the Internet. Supposed IRA gurus have become “Self Dealing Gurus” and “Professors of Doom” making their living telling the media all of the pitfalls and scarring IRA holders to believe that there are so many pitfalls in self directing an IRA that you are surely going to make a mistake and so why bother. Learn to read between the lines and keep in mind, it is in their best interest to do this. Why? Because if you become self-directed, then they can no longer collect exorbitant IRA fees from you.

There is not a “one size fits all” approach when it comes to self-directing an IRA. There are as many IRA strategies as there are personality profiles. Additionally, the United States tax laws are too varied and complex to provide a “one size fits all” concept. However, we recommend you do your own research and then partner with a competent self-directed IRA advisor who understands the best practices of self-directing an IRA.

These investments can be extremely lucrative and are completely legal under both ERISA and the Internal Revenue Code. The good news is you don’t have to sit on the sideline anymore. You can use your retirement account for participation in real estate, starting a business or franchise. Get in the Game!

About Asset Exchange Strategies, LLC:

For more information on the real estate IRA, visit www.MyRealEstateIRA.com. Take the next step to enhance your financial education. Sign up for a free interactive flash presentation on how to self direct your IRA to purchase real estate. Once you click on the link to the website, click on the “Golden Key” to unlock the secrets of IRA millionaires.