Corvus Financial News Wire

Free Lunch Financial Seminars , Not Really Free

Perhaps you have heard the expression, in life there is no free lunch. I know my mother you to tell me that regularly. As is turns out she and other were right. The investing world has many snake oil salespersons that offer a free lunch, literally, and many people disregard the old time wisdom and accept. Step one for reliving you of your money is in place.

Free lunch financial seminars are all the rage in some circles with promises “lucrative careers” in anything from investing in stock options to prospecting for mortgage leads. What they have is a captive audience and most listen to the sales pitch without much resistance. It is easier than cold calling, door knocking and highly more successful than either.

There are not many people who do not need to make more money so the market for free lunch seminar participants is never ending. Make no mistake, these hucksters may not rob you of your life savings, but be sure they will make a pitch for you to buy something , sell something or tell your friends about next weeks free lunch.

Often products and service that are promoted are overpriced and overrated. Many a multi- level marketing proposal is born out of these free lunches. Your free lunch has turned into you writing a check for $399.00 for the right so to a fool proof system to make more money.

Bottom line. If you are invited to make money with a system and selling that system makes you more money that the “product “ it is selling, step away from the lunch room and buy your own meal. You will save money in the long run and that means you will make money simply by not giving it away

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Dislike Your Job , Maybe Time For A Decision

Far too many people hate their jobs or careers. Many drag themselves through each day and try to make eight hours. Life is too short to live this kind of existence, yet the majority of Americans fall into this category. Spending a third of each day miserable is not worth the pain. It does not matter what life stage you are in presently, nor does it matter how old you are, or aren’t. You have two options and both are easily attainable if you are motivated. You can quit your present job or you can get training for a new job. Sounds rather simple does it not?

Most people who don’t like their career choice cannot really identify why. Perhaps you don’t like the people you work with. Maybe the work itself is pure drudgery. Before you decide on something else, make sure you have exhausted all your efforts to trying to make it work for you. Be willing to change. Often when people examine the whys and why nots of a career, they discover it is really not that bad after all. You can choose to like your job, just as you have chosen to dislike your job. Weigh all the costs, purpose yourself to a different attitude and you might just find your career choice was right after all.

This change of heart won’t work for everyone. What if you just can’t get satisfied with your job? Then it is time to make a change. Ask yourself what it is you want to do. Do you need further training to accomplish your career change? There are many online training programs for virtually any career choice at your disposal. Put forth the effort to decide what it is you desire for a career and make it happen.
These really are your two choices when faced with an unhappy work environment. Determine if your job is really that bad and can you change to make it better or decide to change your career and be willing to do anything necessary to accomplish that goal

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Carnival of Personal Finance Goals

Posted in Credit Cards, Economy, Insurance, Investing, Personal Finance | 1 Comment »

Home Equity Protection Plans

Like many people, watching a precipitous drop in your homes value can make even the most secure financial homeowner uncomfortable. The real estate market is a long way from finding the bottom, and where there is discord with regard to finances there is always someone there to capitalize on the fear.

EquityLock Financial, located in  Austin, Texas, and Lighthouse Group based in Charlotte, N.C. are selling products promising to put a little more control in homeowners’ hands. Essentially these firms are offering protection against declines in the value of your home. Here is the deal.

For a fee of 1% to 3% of their home’s value, homeowners buy a contract that protects them against the loss of equity in their home if the market takes a turn for the worse.

Not to be confused with an insurance policy the contract is triggers at the sale of your home and only if your home equity has declined. Say you live in Florida and buy a home for $300,000. Some 4 or 5 years later the bottom falls out of the market and you sell your home for $290,000.00. The amount the homeowner receives is tied to the size of the market’s decline, as measured by one of two home price indexes (both of which are based on sales of single-family homes). If the decline is 10% the homeowner would receive at he closing of their sale, the company you bought the equity protection from pays you $30,000 – your original purchase price times 10%.

The most obvious question you should ask yourself is how long you plan to stay in your home. 2% of a $300,000.00 home is $6000.00. The firms offering these plans obviously hope you stay in your home long term. So although not an insurance policy , the company is betting there money on home appreciation and the homeowner is wagering on depreciation of his or her home.

For those who may think they can capitalize on the terms of the contract quickly sure to ask about any lockout period which bars you from collecting payment before a set time. Most companies will impose an exclusion term ranging from 18 to 30 months from the time the protection is purchased. So you can’t sell your home and make a claim a year after the contract begins.

Is it worth a look? Certainly for many the anxiety of investing their hard earned money it will be. For the time being it might be worthwhile to let this type of coverage run its course for while. The novelty of such programs is what fuels the customer base in the beginning and you don’t want to be part of the novelty.

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Getting a Real Free Credit Report

I’m sure you have seen the TV and radio ads for websites claiming to be giving out free credit reports just as well as I have.  I’m sure that if I started singing one of those annoying little tunes from such a site, everyone could sing along and perhaps even describe what happens in the commercial.  But unfortunately, most of these sites are a case of an offer being a little too good to be true.

The Fair Credit Reporting Act does guarantee you a free credit report from all three major credit bureaus every twelve months.  That is federal law and it’s your right as a citizen to exercise this privilege.  However, most people don’t know that there is only one website that is authorized by the Federal Trade Commission to distribute these credit reports.  It is not really advertised as much as the others, and this does lead people to getting scammed.

Other unauthorized sites are quite sneaky in the way they give you these “free” credit reports.  When you sign up for the site, you are really signing up for a free trial.  You’ll have access to your credit report for usually seven days, then it will automatically switch to having a monthly fee for this same information.  Often this is disclosed in the small, small, small print and consumers may not be aware it’s going on until they check their bank statement and see the charge.

If you want to exercise your right to a free credit report, your only sure bet is AnnualCreditReport.com.  They are authorized by the FTC to give you a free credit report every year.  We all know monitoring your credit is important to protect your from identity theft, so don’t get scammed by trying to check your information.

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Credit Card Balance Transfer Tips

Credit cards balance transfers is when you take your balance from one credit card and move it to another one. Most people do this in order to get a lower interest rate and therefore to pay less. Most often times once the transfer is complete, the old account is closed and the person decides to use the new card from now on, however some people transfers balances and then continue to use both cards.

Credit Card Balance Transfer Tips

If after examining all of the information about both credit card accounts and realizing that the new offer does carry a lower interest rate then there are certain things you must be aware of before doing the transfer. Read on for some balance tips.

Even if you decide to transfer a balance from an old to a new card make sure that you make the minimum monthly payment on the old card. Do not assume that the balance transfer will take care of the payment because it likely will not. This is a credit risk you are better off not making.

The transfer might take a few weeks to be processed and in the meantime you will have to deal with a late fee that you did not count on. You will then notice that the interest rate has changed but not for the better and your credit report will be affected adversely. Bear in mind that balance transfers are not always accepted so your dealings with your old company may not be over. Whether you stay or go you want to always be on good terms with whatever company you are a customer of.

Even if the new credit card issuer assures you that the transfer has gone through, verify it with your old company. If you would prefer not to call the old company then wait until your monthly statement arrives in the mail. Once you see the zero balance showing then you can breathe easy and know that all is well. That will also signal the end to making monthly payments to your old credit card issuer.

When you apply for a credit cards balance transfers, regardless of which company you deal with, make sure you fill out the application properly. Do not forget to fill in any of the blanks and never lie as this is fraud and can get you in deeper troubles than simply just having your request denied! Always read the application over carefully before you send it in to scan for any errors.

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Planning for Unemployment

Somehow everyone knows when they‘re about to be unemployed.  Whether its downsizing, being fired, or being laid off you have a feeling it’s coming.  This can wreck havoc on your personal finances if you don’t plan ahead a little.

The moment you know you’ll be losing your job starting looking for a new one.  If it’s possible to look for a job while still employed, do so.   Already being employed looks very good and gives you credibility.  You also get negotiating power when it comes to salary.  In your plan for unemployment it’s important to know that a job search takes 3-6 months.  Unless you have six months worth of savings, you need to find a new job.

Now is also the time to update your resume.  You shouldn’t rush through this since this is what employers will use to determine your worthiness as a job candidate.  Send your resume to anyone who could possibly help you find a job.  Posting your resume online can help too.

Your plan for unemployment must include minimizing your expenses and outgoing cash flow.  Now is the time to save as much as possible and not spend anything that isn’t absolutely necessary.  Cash flow is likely to be tight once you lose your job so you need to get a headstart when you can.  One thing you shouldn’t do it dip into your retirement.  You put that money away for a reason, don’t lose it now.

When the axe finally does come down, be sure to ask about a severance package.  You need to know when you get your last check, whether you get paid for unused days off, and any other benefits you’re entitled to, and get a letter of reference.  Finally, plan for next time.  Build up your savings and be careful about your spending.  Make sure any skills and certifications pertaining to your field are always kept current.  If necessary you can even set up a second job in your spare time just in case.

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Predatory Lending

When agencies are lending you make sure that you are still calling the shots. There are agencies that take advantage of people who are in need. Thus, there are actually a few techniques used by unscrupulous agencies (or simply the personnel) that still classifies as predatory lending.

Predatory sounds very ‘animalistic’ but really, such term is appropriate for those that have a no heart. This is when fraudulent, unfair and deceptive practices are used to force the borrowers to sign up with a loan. As mentioned, there are different techniques for predatory lending.

One form of predatory technique is when agency present the terms as non- negotiable. Loan terms are actually negotiable, so if agencies present them as wholly non- negotiable, there must be some type of ‘predation’ that is going on. There are some parts of loans that are negotiable but there are some that are really not. Usual negotiable terms are the payment period as well as the amount of your loan.

Another predatory technique is when agencies charge very high risk based price. Risk based pricing is for unsecured loans. Since the agency would not have any guarantee on unsecured loans, then they charge higher interest rates. In the same manner, when the interest rate is considerably higher than the market rate (with the same loan terms), the agency must be practicing predatory lending. Some also have hidden charges that surprise the borrowers, sometimes because of the very large amount.

Short-term loans are meant to have slightly lower interest rate, and any rate exceptionally higher than that of market rate is considered predatory.

Agencies have the responsibility of making sure that all terms and conditions in the contract are known by the borrowers. This includes any type of fees as well as any pertinent information. These documents are very tedious, thus, it could take days to read. That is why agencies should also explain ad highlight some important issues. Thus, some ‘predators’ actually go up to the extent of altering signed documents; thus, the borrowers are surprised of the changes.

Changes of servicing agencies or just about any changes that concerns the borrowers should be made known in advance. Though the borrowers usually do not have any choice on such (business) move, they should still be informed. Thus, any violation can be a ground for cases of predatory lending.

There are some states with laws against predatory lending, so you should check whether you are in one of those states.

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Improving Your Credit FICO Score

Back in the glory days of no accountability and no credit check loans , your FICO score was not nearly as important as it is now. We spoke with a woman if Florida who was able to secure a mortgage on stated income for a first and second montage. She earns 50 K per year the mortgage was made for 250K . That was two years ago, my how times have changed ! Lenders now actually check credit scores and place a premium on lower scores when making loans, if they make them at all. While a credit score of 700 might have been good once, a person with a FICO score of 720 could receive a loan for 1.5% lower. That’s a big big difference for 20 points. Understanding how your FICO score is issued will help you raise it a few points and help your borrowing power

Obviously your credit score is vital to your personal finances. Not only is this score used in determining whether to issue you a credit card, it is a deciding factor in getting loans, mortgages, car loans, and a host of other things. If your financial plan involves buying a house, you should know your FICO score and if its low be working on improving your credit score.

A FICO score is broken into five areas. Your payment history, total amount owed, length of credit, new credit and the type of credit in use. While this is good to know, how does it help in improving your credit score? By knowing how to keep these things in balance. That will give you the highest score possible.

The most important factor in your credit history is making payments on time. This accounts for 35% of the decision in your credit score, so it is vital. Anything over 30 days late is reported on your credit, and the more of those late payments there are the further your credit score will dip. Second most important is not borrowing too much credit. If you currently have a large amount of debt, usually that equals over half of your total income every year, it is unlikely that a creditor will want to issue new credit. It’s also a bad idea to have a lot of credit cards and keep them maxed out, try and pay as much off as you can. Then you will be a better position to compare credit card rates

Not quite as important as the other two, your length of credit history is still important. New creditors want to see long standing accounts that have been well maintained. A lender is less likely to want to issue you credit is it appears there’s a history of getting accounts and closing them a year or so later. It may be worth it to have a few more open accounts than you need to have that long history. These are all simple things you can do that will provide a noticeable increase in your credit score.

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Saving For Non-Emergencies

While most people can say that they have a savings budget for emergencies, it is often the non-emergencies that push our budget to the limit. You can never predict when your car will break down, or your laptop will go on the fritz. The last thing you want to do is reach for the credit card, but you need to have a plan in place to assist in saving for non-emergencies.

Not having this kind of savings is often why many people get into debt. What you need is a non-emergency fund. This can be used for those unlikely emergencies too, but its much more likely that your brakes will need replacing before your home burns down.

The first thing to do is anticipate how much you’ve been spending on these occurrences. Look back at your financial calendar or your banking statements to determine what you’ve spent. These will be things like vacations, car repairs, birthdays, annual property taxes or insurance premiums. Anything that is not monthly counts and should be counted in this list. Now put the amount you anticipate to be spending each month for the next year.

Some will be obvious to you, birthdays come on the same day every year, others like the car repairs won’t be. But you and I both know sooner or later the washing machine will break down, so its best to over anticipate than not anticipate at all.

Include this money in your monthly spending plan. For example, if your property taxes are due in April start putting aside a small amount of money starting at least four or five months before.

So when April comes around the expense is either completely covered or very close to it. Even setting aside the price of a cup of coffee every week can greatly help in case of the unforeseeable. Think you don’t have enough money to start saving for non-emergencies? How many times did you visit the drive-through or get a massage? Even small things add up and can be used to help you save for your future.

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