Author Archives: schatzi

Shopping For Car Insurance Quotes Online – Useful Tips For All Drivers

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You definitely do not want to pay a lot for auto insurance, and the good news is that you do not have to. The best way to find the most affordable and beneficial bargain is to do your shopping on the internet. Apart from being effective, the process is very quick and extremely convenient. You should definitely get car insurance quotes online. The really great thing is that you do not have to pay a cent for the service.

However, this shopping method might be a bit confusing especially for people who have never searched for and bought a policy on the internet. So, you definitely need some advice and guidance before you begin. It is essential that you get everything right so that you do not get disappointed in the end.

It is important for you to obtain as many car insurance quotes online as possible. You should collect various offers from different insurers. All you have to do is visit a website for quotes. Then you can get redirected to the web pages of any insurer of your choice. Then you will have to fill in a form to get the actual offer. It is true that this is a bit time consuming, but it is definitely worth doing it. Fortunately, you can speed up the process.

You will be asked to fill in details on your driving and insurance history. You will also be asked a few questions about your vehicle and how you use it. So, it is best to be prepared to give precise answers to these questions. This will save you time, but more importantly you will you will get a quote that is quite accurate. You need to have your driving record at hand. You should definitely request a copy from the respective local authorities in advance since you will need to present it to the insurer eventually.

You also have to have a copy of the contract you have signed when purchasing your present auto insurance. Generally, you need to know the details of your policy. Also, you have to know what model your car is and when it was produced. You have to write the mileage down so in order to get the most accurate number you have to check the odometer in your car.

It is best for you to have an idea about the type and amount of coverage that you want to get as part of your policy. You can readily decide on an approximate premium sum that you are prepared to pay even before requesting car insurance quotes online. You have to take into account your monthly budget as well as how useful the different kinds of coverage can be to you. You should also aim for higher limits at least on the mandatory covers.

When you shop for car insurance quotes online you should be careful about the security of your personal details. It is a good idea for you to check the how your privacy of the information you provide is guaranteed. Most reputable companies give the necessary details to their potential customers.

Subprime Mortgage Crisis – Why Can’t Lenders Just Fix the Bad Loans and Move on?

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With all of the foreclosures and bankruptcies that are being triggered by the subprime mortgage crisis why don’t lenders just put all of these homeowners in better loans? We are asked this question on our mortgage blog quite often. It’s a reasonable question too. If it’s the bad loans that are causing the problems wouldn’t be cheaper for the lenders to just bite the bullet and fix the bad mortgages? Meaning, wouldn’t it cost banks less money to lower interest rates and fix adjustable rate mortgages on their loans than the billions they are losing from all of the foreclosures?

In some cases banks are doing just this because it does make sense. However as I will explain, this is much easier said than done for most banks. The reason is that very few banks these days “own” the mortgages they service. A few regional and national banking chains do maintain a portfolio of loans that they originated, but by in large most banks do not. Most mortgages are owned by a pool of investors and are merely serviced by the company that homeowners send their payments to.

This is why when you call your current lender that you already have to refinance they make you re-qualify for a new mortgage again. While I was originating mortgages, I had countless borrowers call me to refinance that were disgusted with their mortgage company for that very reason. It seems to reason if you have paid your mortgage on time for ten years the bank would just lower your rate to keep from jumping-ship to another lender. The problem is that they have to put your new loan in a new portfolio and sell that portfolio to other investors, this is called securitizing.

Banks and lenders buy money to sell much as retailers do for the inventory that they keep on their shelves. For instance, a toy store can purchase a crate full of toy soldiers at a wholesale price then put them on the shelves and retail them for a profit. Banks buy and sell money the same way from their retail, or mortgage divisions. The only difference is that banks reach their loan capacity they have to take these groups of loans and sell them to investors on Wall Street. If banks didn’t do this they would loan all of their money and be out of the mortgage business.

Now you have a group of loans that is being serviced by the bank that is owned by 1 to 100 different investors. That group of loans is treated like the wholesale the box of toy soldiers that is sold by the case not individually. To ask the investors to reach into the “box” and pull one soldier out and alter it would disrupt the total value of the box as a single unit. This would also upset the other investors who have money tied up in the box of toys.

Staying with the toy soldier analogy, what has happened to banks in this crisis is they can’t sell the box of toys to the investors anymore. The retailer has $100 invested in the box of toys and investors believe that the toy soldiers are a bad investment and will only offer $70 dollars for the box. This means that the retailer has to hold onto the box until prices rise back to $100 or sell the box for the $70 dollars and take the loss. This is the same with banks today; either they cannot afford to sell their loans or they have chosen not to and ride out the storm.

Both way lenders and banks have stopped buying and selling money as freely as they used to and cash is in short supply. When supply is short and demand is high prices typically go up. This is why the Federal Reserve Chairman keeps lowering the prime rate in an attempt counter higher rates that would almost drive a nail in the coffin of retail lending. As of this article Atlanta mortgage rates are around 5.75% for a thirty year fixed mortgage and would probably be in the mid-sevens without Bernanke’s involvement.

Passing legislation that over regulates banks and lenders will not solve our problems. Neither will instituting individual government plans aimed at helping a finite amount of borrowers like some in congress have suggested. The answer to this subprime mortgage crisis will be derived from a plan to restore confidence in mortgage backed securities that will allow the flow of money to open up once again. The free market will correct its mistakes and lending will begin a new day.

Car Insurance Tips – Your Preferred Auto Insurance Cover

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You must have a terribly reckless and destructive driving record before you can be classified as uninsurable by car insurance companies. The truth is that most reckless and violating drivers have auto insurance cover systems designed for them. What is noted here are the rates they pay. They are usually very high.

Although you are seen as a “high risk” for the reason that you are engaged in fast sports and stunt driving; the truth here is that though your job is termed “high risk”, it pays you a lot of money. This type of job makes you rich and this makes a lot of difference if you compare their auto insurance preference to the normal office workers’ preference who uses his vehicle just to get to the office and back home when the days’ work is done; and maybe take his loved ones out on certain weekends.

Your salary plays a major role in determining what you will call your perfect car cover policy.

The car usage and the car owners’ income forms the very vital information when calculating the best and ideal car cover policy to purchase.

The rich and famous stunt driver will not mind paying more on rates for his superstar automobile, this is because what he pays for his car insurance cover is small when compared to what he makes doing the stunts.

As a normal vehicle user, you will enjoy better rates and discounts from the auto insurance companies if you use a car that fits your salary. Do not rush after the over classy and high-end vehicles if your budget can not support covering them.

It is easy to get the service that suits your budget and most times getting this information is free.

Credit Card Debt Strategies

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Consumer credit debt is at an all time high. The want it now pay for it later mentality has caught up with many families. As a result, more and more people are trying to come up with a way to pay back monstrously high credit card balances.

There are 5 common strategies that are used by people to payoff, reduce or eliminate their debt. They are: debt roll up, debt consolidation, debt counseling, debt settlement, and bankruptcy. let’s take a look at each and their pros and cons.

Debt Roll up

This is a great strategy if you can stick to it. The premise is simple. You put together a list of all your debts. Credit cards, auto loans, and mortgage. Starting with the credit card with the smallest balance, you pay the minimum – but with an added twist. you add what is termed an accelerator amount. This amount is extra money you can afford to put towards your debt every month without fail. It is usually recommended that you put down at least 10% of your gross income. So, you pay the minimum plus the accelerator until that card is paid off. Then add that total payment onto the next lowest card balance until it’s paid off, and so on. People that can afford to do this and stick to it typically find that they can pay off all their debt plus their mortgage in about ten years.

Debt Consolidation

This strategy involves taking out a loan with a smaller interest rate to pay off all your credit cards. Usually this loan is in the form of a home equity loan. Good things? Lower interest rate, usually tax deductible. Bad thing? Suddenly you have empty credit cards again. Many people find the temptation just too great, and before they know it, they have a ton of new credit card debt on top of their home equity loan.

Debt Counseling

In this scenario, you hire a third party to collect money from you to pay to your creditors. These counselors can arrange to have your creditors lower your interest rates and get penalty fees removed. Many people that start one of these programs don’t finish. They find the payments too inflexible, and if say a medical problem crops up, they are in financial trouble again. Also, these services are actually funded by the credit card companies.

Debt Settlement

In this strategy, you simply stop paying your payments. Not to avoid paying, but to save that money to pay off in a lump sum. See, once you start getting to 90 days or more late, the credit card companies will offer to settle with you for a reduced balance. There are services that will handle all this for you, but they often charge exorbitant fees to do so. You can do it yourself, but be prepared for a barrage of annoying collection tactics like non-stop phone calls and letters. Your credit score will take a hit, but you can repair it a lot faster than if you declare…

Bankruptcy

The last resort. Depending on your situation, you may be able to wipe the slate clean. Otherwise, you will still end up paying everything back but will have protection of your assets – such as your house. Your credit score will take a huge hit, and a bankruptcy is on the public record for 10 years. You will find it very difficult if not impossible to borrow any money for things like cars and houses, and if you can find a loan, expect to pay very high interest rates.

Which strategy is right for you? That will vary depending on your circumstances and your resources.