0 4 Hidden Credit Card Perks and Benefits that Consumers Should Know

Credit cards make us paranoid at times. We typically associate negative connotations to these plastic cards: never ending monthly payments, compounding interest, and a lifetime of debt among others. There are also perks and benefits credit cards offer, however, that can make us think the other way around.

Flexible Payments

Not everyday is shopping day, but if you have a credit card, you can practically buy what you can and pay just one-third of the amount owed next month. 

So, if you are buying the iPad Air, which costs around PHP 32,000, you have to pay the exact amount if you want to buy in cash. But if you have a credit card and you want to buy the iPad, you just have to swipe your card. If you buy an iPad air, your purchase will reflect in your next bill and you’re only required to pay at least the minimum amount of 3%: around PHP 1,000. 

Speaking of flexibility, you can take advantage of 0% monthly interest promos that most credit card companies in the Philippines offer. If you take advantage of a three-month 0% interest promo for your iPad Air, you just pay around PHP 11,000 for three months with no interest starting not today, but next month.

If the promo is for 12 months at 0% interest, you will only have to pay around PHP 2,600 per month starting next month. That’s a PHP 30,000 difference, and a lot better than paying in cash, because you can make use of your cash for other stuff or save it for an emergency fund.

Worry-Free Utility Bills Payment

This is one convenient feature of credit cards offered here in the Philippines, since most credit card holders pay utility bills. Paying these bills through your credit card will help you:

·   Avoid the long lines in payment centers

·   Pay ALL your bills through one statement

·   Organize and track your bills

Let’s say you live in the Metro: you have to pay Meralco, plus your Maynilad or Manila Water bill, plus your phone bills, among others. To make things worse, they have different due dates. If you use your credit card, you can set up an auto-pay facility to take care of your bills once they arrive, and then all you have to pay is your credit card statement. Better yet, you can also pay your credit card at home or wherever you are through online banking.

Supplementary Cards

If you have a big family, or you have a loved one who is far away, or if you’re teaching your teenager to manage finances, supplementary cards can be a good tool. Supplementary cards work like sharing your credit limit. If your credit card has a PHP50,000 credit limit, you share it with your supplementary card holders.

You can rely on supplementary cards during emergencies too. Let’s day your daughter – a first time driver – just had her first flat tire; she’s far away and doesn’t know what to do and where to go. If she has her supplementary card, emergency money is not a problem. Whatever she buys through her card will reflect on your bill as you are the primary card holder.

Balance Transfer

Sometimes, unfortunate events happen that make our already tight finances suffer even more. Sometimes it’s unavoidable to have debts and compounding interests on several credit cards that you own. Fortunately, you can consolidate your debt into one card through balance transfer.

Let’s say you have four credit cards from different banks, and you are paying 20% interest monthly. If you take advantage of a balance transfer, you can pick the bank that has the lowest interest and consolidate your debt into that bank’s credit card, and pay only for one interest per month. Contact your banks regarding this option and choose where to transfer all your debts.

These perks and benefits would not be to your advantage if you’re not financially responsible. It always depends on how you use or misuse your credit cards. If you’re an impulsive and reckless buyer, don’t expect to be debt-free!

About the Author:

This article was contributed by Mark Yasay of MoneyMax, Philippines leading comparison website. This portal helps individuals in saving money by comparing credit cards, personal loans, insurance and broadband plans.

1 The Bank Bail-Out: Saving America's Banks

Much is known about the near-collapse of the housing market and the financial ruin that followed some of America’s largest banks. The more disturbing story is not how America’s largest financial institutions nearly caused the largest recession in US history, but how in the midst of the federal government’s efforts to stabilize the financial industry, the people, whose houses were being foreclosed and the small businesses on main street that suffered, were left in the dust. By examining the issues surrounding the collapse of the housing market and the federal government’s response, it is clear that the regular Americans were sacrificed in order to save wall-street.

In 2006 a problem arose across America. All economic indicators showed that prices for individual homes were starting to go down across the board. In order to try to force housing prices to increase, the Bush administrations authorized the Fed to lower interest rates and change the rules that pertained to borrowing. These new rules allowed an increase in the number of sub-prime mortgages, mortgages issued to lenders who might have problems with repayment. The result was that many people who previously could not afford to own their own home were allowed take out a home mortgage loan, which caused home prices to increase to record heights. With high prices and record profits, home developers began construction on new housing projects with the hopes of taking part in the housing bubble.

However, government deregulation, the saturation of the market with new houses, and sky-rocketing housing prices coupled with unnecessary financial risks taken by banks caused the housing bubble to finally pop. Homeowners woke up to discover that the value of their home was substantially lower than when they had originally taken out their mortgage for the same house. Many homeowners, who under normal circumstances would not quality for a home mortgage loan and were intending to sell their homes for more than what it was worth, found that their home was upside down and began to default on their mortgage payment. Foreclosures hit a record high and banks found themselves with a set of sub-prime loans that were now worthless, resulting in record losses for the vast majority of American lenders. On the precipice of the greatest financial collapse since 1929, investors and lenders alike solicited aid from the federal government.

What was proposed by Secretary of the Treasury, Henry Paulson, and the White House to Congress was the Emergency Economic Stabilization Act, which included the $700 billion Trouble Assets Relief Plan (TARP). The intention was to create liquidity for banks and lending institutions to prevent their financial collapse and, in exchange, the financial institutions would eventually pay back the money borrowed from the federal government with interest once the institution became profitable again. Under the Obama Administration, TARP was extended to General Motors and Chrysler, and a separate fund was created to reconstruct Fannie Mae and Freddie Mac.

Though the EESA created stipulations for the restructuring of the financial industry in the United States, this bill, and any bill after the EESA on the federal level failed to establish a plan to help homeowners struggling with their mortgage payments or homeowners facing foreclosure. The bill also did not establish a fund to bail out small businesses that were directly affected by the housing market collapse. Appliance and furniture retailers as well as home construction companies were faced with huge profit losses, and many of these companies were forced to file for bankruptcy or close their doors permanently. Though state and civic governments have attempted to address the issue within their jurisdiction, no federal actions have been taken to help homeowners or local small business. Many of those on main street America felt betrayed by a White House and Congress that was elected to protect their interest, and instead passed legislation to save the multi-billion wall-street banks.

The truth of the matter was just that, the blame should not be placed on the homeowners or the banks, but the federal government that first deregulated the housing market then failed to assist struggling homeowners and businesses. The government traded long-term growth for short-term price hikes, a fateful decision that the American people struggle with today.

2 What to Expect from Credit Counseling

Across the country, many people are trying to juggle overdue bills while living from paycheck to paycheck. Credit counseling can often provide the tools and resources consumers need to assist them in learning how to develop a good budget and get on track financially. When you first consider working with a credit counseling company, it is quite common to have questions about what to expect.

A reputable agency will provide you with advice regarding money management, as well as assist you in preparing a budget. They will also often provide you with complementary money management resources and workshops. Be prepared for the initial counseling session to last a minimum of one hour. During the initial session, your counselor will perform a careful review of all of your current debt. At this time, you will need to be prepared to discuss both your income and expenses. It can be beneficial to have all of your bills and statements readily available for this review. Although you may find it uncomfortable to discuss you finances, it is much better to be open and honest regarding your current financial situation. You are certainly not alone in your situation. As of today, there are many people facing financial hardships through no fault of their own.

Your credit counselor will discuss your financial situation with you in detail and develop a plan that is personalized to your situation. Based upon the amount of debt you currently have, your counselor may also recommend a debt management plan that will allow you to make monthly debt payments directly to the credit counseling agency so that they can disburse the payments to your creditors. In turn, they will pay your creditors on your behalf. This can often be beneficial because the counselor will be able to lower interest rates and negotiate late fees with your creditors.

If you have reached the point where you are being harassed by creditors and collection agencies due to late payments, a credit counseling service can also help to put a stop to collection calls. This alone can prove to be a tremendous relief. Your credit counseling service can also provide you with an array of educational tools that can assist you in learning to plan for financial emergencies. If you are considering buying a home in the future, your counselor can educate you about what you need to know before making such a large purchase. Credit counselors can even assist you in getting back on track if you are having difficulty making your mortgage payments. Follow-up sessions may then be scheduled as needed to help you stay on track for reaching your financial goals.

Credit counseling may be beneficial if you find that you are not able to pay the minimum balances on your credit cards every month or are consistently late on one or more bills.

By working with a reputable credit counseling service, it’s possible to take control of your finances and develop a debt management plan that will assist you in budgeting your income and paying off your debt quickly.

Jennifer Willard is a freelance writer and blogger. She writes for her own personal finance blog and is a contributor for CreditGUARD, a non-profit debt counseling agency.

2 7 Areas Of Interest - The Lender Will Pick His Nose At While Loaning You Money

Many lenders find it hard to give loans especially to people with bad credit .Financial Advisors are keen a when advising their clients to follow their repayment periods and interests as stipulated once a loan is given. Fortunately, it is possible to get a loan for bad credit people but it is not easy, lenders will give such loans with high interest rates since they pose a risk to the lender. 

Loan lenders always look out for the following when they are just about to give you a loan.

 1. Possibility of giving you a payday loan
 Every lender needs to have an understanding on the different types of loans they offer. Moreover, they will be able to advise potential borrowers on the right loans to pick. When borrowing a loan you need to consider whether you need a short term or long-term loan. Payday loans are short-term loans given strictly on your ability to repay them. Applying for a payday loan does not affect the effect of your credit score unless you fail to repay the loan. Thus is it advisable to use quick cash in unexpected situations. 
2. The possibility of having credible cosigner 
When applying for a loan, lending institutions always check your credit background. Therefore, it is wise to apply for a loan with a cosigner. A cosigner is a family member or a friend who has a good credit history. The cosigner agrees to take responsibility for the loan if you do not make the payments. When you are listed as a borrower on the loan with a cosigner, you get higher chances of getting the loan. Lenders easily give loans to a borrower who is cosigned. 
3. Would you have some collateral?
 Collateral is property that you own that can be used to secure a loan. Most people offer homes and vehicles forms of collateral. It is a way that gives lenders confidence in your ability to repay the loan. Most financial lenders prefer giving loans with such security to ensure you can be accountable.
4. What is your placement on Credit? 
Higher credit scores make qualifying for loans easier. Credit scores are affected by collection accounts, and available credit. Paying off debts will increase your available credit and increase your credit scores. Financial lenders are keen to ensure you have small amounts of unpaid debts and good credit scores before lending.
 5. Term of refunding your loan
 Term refers to the length of time you will take to repay the loan. This repayment period could take five years for a general-purpose loan. Therefore, a lender is able to verify depending on the amount of money he has offered, how long the repayment period will take. 
6. Price of your loan
 This implies the cost on taking out the loan. Most financial lenders are able to set the price depending on two factors - interest rates and charges. Different lenders vary in price depending on the financial package they able to offer to their clients. Lenders are able to set fixed or variable interest rates. Charges will include the fees of setting out the loan. 
 7. Money laundering
 These are a major key factor for every financial lender to check. The law has come up with ways to detect lenders who take advantage of borrowers. There are rules that have been set apart to trace any crime of money laundering and any proceeds of crime. The law requires most professional advisers and lenders to adhere to these laws. For example, they are required to report to any suspicions they may have on money laundering .Such professionals face long sentence in jail when they fail to report anything that comes to their attention. 

Author's Bio:
 Natalie Pace is a qualified loans expert and deals widely with this subject. Being in the finance field for a long time, she likes to write blogs about insurance and she has a vast amount of knowledge on the subject. She has some vital knowledge on quick personal loans, which is an insight for everyone. 

Other Resources:  SBA Loan Programs

9 Forget the Auto Loan

If you have a really bad credit score, you can forget about the auto loan: even if you manage to get your application accepted, the interest rates will be highway robbery. That's because the lenders do not view the car as an investment: it's an asset that loses value quickly, so they're not particularly pleased with the thought of having to repose it from you.

The good news is that there are alternatives, and you don't have to survive without a vehicle, even if you can't get a loan. The bad news is that most of these alternatives are worse than the terms of an auto bad credit personal loan, so they should be used as a last resort.

1. Use Cash Savings

This is no rocket science: if you have cash stashed aside for an emergency, it's better to use it for the purchase of a car, than to struggle with a loan that will just accumulate interest and drag you deeper into debt. Even if this means you'll have to scale down and you won't get the car of your dreams right away, if you have savings, use them.

2. Get a Loan from a Relative or Friend

There are two ways a member of your family or a friend can help you out in this situation: either by co-signing the auto loan with you, or by lending you the money directly. In both instances, keep in mind that you're placing a serious burden on a loved one, so make sure you don't ask for too much, and repay the loan as quickly as possible.

3. Take a Personal Loan

Even if you don't qualify for an auto loan, you may still get a no credit check loan, which has less restrictive conditions. The interest rates will be higher, but at least it has the advantage that you can time it so it's paid off by the time you want to get rid of this car and buy a new one.

4. Use Cash Value Life Insurance

If you have a permanent life insurance policy, it carries a cash value, and you can borrow money against it. Check with a consultant before taking this step, since there are some taxes that have to be paid, which vary from one state to another.

5. Use Your Credit Cards with Caution

Credit cards always carry high interest rates and steep penalties if you fail to cover your debts from one month to another – not to mention that they can cause serious damage to your credit score. Taking money from credit cards to pay for a major purchase, such as a car, is a very bad idea. Only use your cards if you need a very small amount, and you're certain you can repay it before the debt cycle is over.

6. Use a Credit Union Loan

If you're a member of a credit union, ask for the financing options. Usually the terms are far better than what you can get from a bank, and this could save you a lot of money in the long run.

4 Women Are Dissatisfied with the Financial Industry

A recent survey on women’s views about the financial services industry has turned up something quite revealing: 73 percent of the respondents expressed dissatisfaction with the industry. That’s bad news for health insurance professionals and life insurance agents (those with life insurance license) who are trying to reduce the total number of women without life insurance, currently, a whopping 64 percent nationally.

The Boston Consulting Group survey revealed that women in general feel that they are overlooked and excluded by the industry. They also said they receive inconsistent or poor advice and are awarded deal terms that are inferior to what men get.

Learninsurance.com offers online Texasinsurance adjuster education for insurance agents nationwide.

Interestingly, the Boston Consulting Group reported that only 11 percent of American women said they would like to work with a female financial adviser, with a surprising 85 percent indicating a lack of preference as far as the gender of their banker or investment adviser goes. The absence of preference was wholly unexpected considering that previous surveys had shown women exercising more cautious risks and obtaining more consistent returns with the money they manage than did the men.

The survey is begetting a flurry of questions in the industry and financial advisers of both genders are coming up with fast answers. One of these is the belated realization that women need a set of different financial tools. For instance, Mike Sanders, president of Clark Dodge Asset Management, believes that women need to feel their kids are financially secure—opening the way for solutions integrating college planning with achieving life goals by using tax-efficient current and future resources.

The industry is now finding new paths to profitability by simply paying attention to what women want.

0 The Era Of Payment By Cards

The Need For Debit Card Machine

This is the era of electronic payments and the payments by cards. We need this it is easy to move on without the cask as well as the fear of getting robbed. This is the reason that most of the retail outlets have the provision of credit card and debit card machine that has come to be of great help to the people in general. It is like any outlet will find it hard to function if they don’t have the provision of accepting the payment by card. This is not just for the debit but for the credit cards as well. It is impossible to get the credit from the retailers, but while using the card the guarantee is given by the bank about the payment of the money. But for every card there is a limit. For debit card you will have the limit of the cash that you have in your account. In the same way for the credit card as well, the banks will put a limit over how much credit you can credit you can draw, depending upon your income as well as payment patterns.

Debit Card Machine For A Business Enterprise

In today’s times it is very important for any retailer to have the provision of accepting the payment by card. But the bank will also allow for the allotment of such a machine if you can assure the sale of a definite amount each month. Because, generally it is the same machine that is used for swiping of the debit as well as credit cards, it is all the more important that have such definiteness in their dealings. This is because the processing by the banks as far as the cards are concerned is very precise and clear and for that reason it is important that they make sure about the size of the business set up as well as the location that they are planning to set it up in.

Types Of Debit Card Machines

As one delves deeper into it, they can make sure that they have different types of debit card machines to choose from. This is because they need to see their work as well as the need to provide their clients with better service. What we have been used to of is that debit card machine that we see at the time of billing in the supermarket and other retailers. But it is about the debit card machines that are also portable and mobile that can be made use of by plumbers, electricians as well as other people who offer mobile services.

Relevance Of Such Machines In Service Sector

The main purpose of service sector is to provide the people with the best of service without any kind of inconveniences. Carrying of cash is a big hassle as there is a constant fear of it getting misplaced or mishandled. This is the reason that need to have such machines is all the more needed.

4 The Online Mode Of Making Money

Way To Earn Online

It is quite obvious that we all are a witness to the great technological advancements that is happening around us. It was earlier the concept that there are no free lunches. One needs to slog it out of they need to make money. But now the trouble has been half reduced as because of the internet one is able to access the world in terms of information as well as other sources of employment that are becoming available to the people. One does not need to venture out of their house to find employment as there are a lot of opportunities related to their area of interest that can be pursued right in the convenience of their homes. This is still some effort to be put in. There is another concept of Free PayPal Money that is becoming very popular. Here the person will get the money with minimum or no effort at all.

The Paypal Concept

Who would mind getting paid for doing nothing or for doing minimum work? It will be a dream work for almost everyone. But how do they manage to do that? The online money is spent as well as acquired with the help of PayPal. One needs to have the account with PayPal if they are interested in making online dealings of any form. Will you not like it if you had a lot of money in you PayPal account so that you could just spend and splurge without having to give it a second thought? Well this is not a dream anymore. You can actually lay you hands on some huge amount of cash online with the help of Free PayPal Money.

Paypal Money Adder

You will have to install the software that is the Free PayPal Money Adder, and simply type in the amount that you are interested in. Once you done the required formalities like your existing email id as well as the basic details, the money will be transferred to you account in 24 hours. This is the easiest way to get the cash to fulfill all your heart’s desire.

The Survey Method Of Earning Money

There are many other easy ways that have made it really easy to make money online. How is that possible? Well this is marketing methods that have been used by the companies in collaboration with the website who provide the apt platform for bringing together the companies as well as people interested in taking up such jobs. You would be required to fill in the surveys about a product that the company has either launched or is planning to launch. This task is very simple to be done by the people as it does not require any specific qualifying criteria. But at the same time it proves to be very helpful for the company as it can get a good database as well as the opinion of the people for whom the product would be intended

0 Don't Forget To Set Some New Year's Money Resolutions

By AMP Financial Planner Ali Mohammed

The New Year is a time when people tend to reflect on the past 12 months and the changes they'd like to make in their lives.

Many resolve to quit smoking, lose weight or do more exercise. And if you're keen to get on top of your finances, some New Year's money resolutions are the way to go.

Here are 10 things people can do, regardless of their income levels, to improve their financial well being in 2013.

Top 10 New Year money resolutions:

1. Start with a budget It's essential to have a household budget and stick to it. If you spend more than you earn, it can quickly land you on the roller coaster of debt. Make a promise to start living within your means.

2. Differentiate between 'wants' and 'needs'
Don’t be too hard on yourself, but do you really need the $100 per month pay TV package? You probably don’t watch half the programs.

Cars are big traps too. It’s nice to drive the latest and greatest, but don’t live for your car. Be sensible.

3. Shop smart
Look for ways to reduce your spending such as using discount petrol dockets, taking your own lunch to work, cutting back on take-away dinners and car pooling.

Reduce your weekly grocery bill by shopping for your fruit and veggies at farmers' markets, buying generic groceries and planning meals to avoid waste.

Always shop around for the best deal when purchasing big ticket items.

4. Use credit cards wisely

Credit card debt is fine if you pay it off each month before interest is incurred. But if you have a large amount of debt sitting on your card, it could be costing you an astronomical amount in interest each year.

Interest rates on credit cards are sometimes as high as 20 per cent or more, so it's important to pay off this kind of debt as fast as possible. To do that you will need to make more than the minimum repayments each month.

If you have several cards maxed-out, consider rolling all the debt in to one low interest-bearing card to save on interest. Once you have finally paid the card off, cut it up and switch to a debit card if you have to.

5. Have an emergency fundAs a contingency for life's unexpected expenses, it's vital to have an emergency fund or access to cash through a mortgage redraw facility or offset account.

A good rule of thumb is to have at least three months salary in the kitty. This will avoid the need to rely on credit cards in the event of an emergency.

6. Get savvy with your superAustralians are losing around $1 billion a year in fees, lost payments and earnings by holding several super accounts they aren't contributing to (Rice Warner Actuaries 2008). AMP has introduced a simple service allowing customers to consolidate their super online for free at amp.com.au/consolidate, or by calling 133 888.

Also consider topping up your superannuation by salary sacrificing another two to five per cent of your income, depending on how much you can afford. Lower income earners should also make the most of the government co-contribution scheme.

7. Review your mortgage The most effective way to save interest on your home loan is to make extra repayments each month. The monthly repayments on a $300,000 mortgage over a 25 year term at 7.25 per cent are around $2,168.

But a person could pay the loan off 10 years earlier and save $158,277 in interest if they increased their monthly repayments by $575. People can also attack their loan faster by paying fortnightly instead of monthly and making lump sum repayments whenever they can.

It's also now easier for consumers to shop around for a better deal after home loan exit fees were abolished on all mortgages taken out from 1July 2011. However people with loans taken out before this date need to carefully consider the costs associated with moving a mortgage.

8. Have a debt strategy Financial worries can be very stressful, so it is important for people to take control of their debt before it starts controlling them. The general rule of thumb is to pay off 'bad' debt like credit cards first as they usually have the highest interest rates.

Once bad debts are under control, a person can then target other debts such as their car loan and home loan and save even more in interest.

As the interest rates on home loans are much lower than other loans, this type of debt should only be targeted more aggressively after your credit card and other high interest loans are under control.

9. Protect your family

It's not something we want to think about, but you need to ask yourself how your family would cope financially if you or your partner were injured in an accident, became too sick to work, or even worse, passed away.

These days, insurance doesn't have to be a big drain on the budget. If cash flow is tight, you can get affordable life insurance and income protection through your superannuation. After a change in regulations a few years ago, it is now possible to obtain income protection insurance from some funds to age 65 inside your super.

10. Save for the future

While most people are pretty good at saving for short-term goals such as end of year holidays, they often forget to put money aside for the future.

Make sure you have a savings plan for medium-term goals such as a deposit on your first home and longer-term milestones, like retirement funding and the kid’s education.

*Ali Mohammed is an Authorised Representative of AMP Financial Planning Pty Ltd, ABN 89 051 208 327, AFS Licence No. 232706.

Any advice given is general only and has not taken into account your objectives, financial situation or needs. Because of this, before acting on any advice, you should consult a financial planner to consider how appropriate the advice is to your objectives, financial situation and needs.

3 5 Tips for Dealing with Debt

If you’re in debt you’re not alone. In fact, as a nation, we in the UK hold over I trillion pounds in personal debt. Debt can impact your life in many ways, from your ability to access credit to affording everyday expenses. So if you’re in debt and struggling to repay, it’s important to tackle the issue head on. So here is a quick guide to how to deal with debt, and regain control of your finances.

Prioritize Debts

Pay off most expensive debts first. Bad credit loans, personal loans and credit cards are the most expensive, so tackle these first. 

Consider a Personal Loan

If you’re in debt and have a poor credit history, then you’re most likely to qualify only for a bad credit loan. Although it’s not advisable to borrow more to pay off existing debts, in certain cases it can make sense if you have very expensive debts such as store card loans. You can consider consolidating with a debt consolidation loan, but if you have bad credit, this can also be an expensive way to borrow

0 What Secrets Does Your Budget Hold?

A personal or family budget can reveal a lot about a person. What secrets does your budget hold? I'll share how to look at your budget along and where to make cuts that will help you save more. 

Stop borrowing and start saving

Our natural inclination when we are faced with a large or unexpected bill is to borrow the money to get out of a fix. What you are doing of course is actually making your financial situation worse in the long run simply as a way of dealing with an immediate financial crisis. The vast majority of us really don’t like budgeting as it is not a very exciting or pleasant way to spend an evening going through what you spend and how much money you don’t have any more after just getting paid. If you can bear the pain of your finances being laid bare you will be potentially be rewarded with savings that you make and the chance to build a stash of cash that will help you deal with an emergency when it comes along.

Make a budget and set up a savings strategy

To make an accurate budget you have to make a comprehensive list of all your expenditure and that means not just the rent and the car payments but also the amount you spend on donuts and coffee so you can see exactly what you spend compared to how much you earn each month. In preparation for the savings you are looking to make from your outgoings set up a separate savings or deposit account so that you can transfer any spare money into there. Having a separate account for your savings is vital and you will often be pleasantly surprised how quickly even $30 a month will build-up a bit of a buffer against the unexpected.

Cash is king

We all love the convenience of credit cards but try leaving the credit card at home and taking out a weekly amount of cash that you have worked out will cover all your basic and discretionary expenses not paid by standing order such as fuel, food and entertainment.

6 The Dos and Don’ts of Investing in Real Estate Rental Property

 There are a lot of reasons in invest in rental property. They can provide a steady income in a slow housing market. They can help build equity in a retirement of vacation home. They also allow first-time buyers to enter the market.

Before investing in a rental property, have realistic expectations. Do not expect a quick profit, since rental properties are typically a long-term investment.  Resale prices are usually based on incoming revenue, not on home prices.

With that being said, it is important to know your market. Normally it is wise to buy a rental property in the nicest neighborhood you can afford. Important facts like school districts, proximity to public transportation, employment rate and crime rate are good to know.

The character of the neighborhood is key as well. Certain types of properties will have different sorts of tenants. For example, a duplex in a cozy family-oriented neighborhood will receive less turnover or wear and tear than in a college neighborhood.

It is also important to be patient. If you price your property too high you could lose money because of vacancy. If you price it too low, you could lose money overtime. It may be wise to consult a fellow professional on the matter, who can help weigh the trade-offs in a particular circumstance.
Once you find a property, it is essential to find quality tenants. Bad tenants will damage your property, run up maintenance costs and if they abandon your property, leave you with a vacant property that is losing money. Good tenants provide a predictable, steady income and take good care of the property.

0 The hidden truth behind travel money

The hidden truth behind travel money – the complete guide for penny pinchers

Every year we sit around and wait for that period of time when we can forget about work, leave the kids with grandma and get on a plane bound for a far and mystical destination. We spend hours planning it; which hotel is best value for money, plan routes, compare ticket prices and research the amenities at our chosen place of holiday. On my last trip to Brazil with my wife I couldn't believe how much money we wasted on exchange rates in retrospect. Once home, I educated myself on the subject. Astonished at what I found, I wanted to share it with others so they won't make the same mistakes we did.

You must think, “it can't be that much”. Well, if you are converting Euros to Dollars you can possibly lose on €40 for every $500 you exchange! That got your attention didn't it? There are 2 elements to consider when approaching the matter; the exchange rate offered and commission fees. Exchange Bureaus make their money from the difference between the value they buy and the value they sell. The higher the exchange rate they offer - the better, so you better find out what the current exchange rates are before buying or selling any sort of currency. Commission fees may be in the form of minimum charges, flat fees and handling fees. Beware, some bureaus may offer great exchange rates but come with high commissions and vice versa. Do your research – and pay attention to the details.

So here are some pieces of advice on how to save a buck or two. First and foremost, stay clear away from Airport bureaus – they are exchange death traps and are renowned for offering poor exchange rates as well as high commissions. Also, whilst you might expect your bank to give you the best deal on foreign currency – don't just assume since it will not always be the case.

Whilst away, pay cash whenever you can - credit card usage often involves transaction charges which might not seem a lot at the time but trust me, they pile up. Using your debit card for purchases abroad might cost you approximately 2% - your bank doesn't like it when you exchange your money elsewhere (Check your bank credit policy before jetting off). Of course it would be foolish to carry so much cash, the last thing you want is for it to get lost or stolen and ruin your time away.

So what other cash alternative are there to ensure your piece of mind? Prepaid cards have the same usage as debit/credit cards but without the exchange rate fees , they work by charging them with cash before the holidays. Travellers cheques are also a safe bet though slightly outdated. However, even these two are subject to different fees, so read the fine print.

In conclusion, my advice to you, is to spend as much time planning your holiday money as you do the rest of your trip. There is nothing worse than returning from a trip and seeing a big dent in your bank account, especially when you will already have the post-holiday blues!

0 A Guide to Employee Tax and NI

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Getting your employee tax and national insurance right can save you money and a nasty letter from the tax man, as well as fines and even court orders. Some employers do not understand the basics of employee tax and NI which then results in them overpaying their staff, or perhaps even underpaying them. This guide aims to help you better understand what is required of you, as well as how you can save money and avoid those nasty fines.

The Basics of National Insurance for Employers and Self Employed Workers

As an employer it is your duty to pay National Insurance Contributions (NIC) on the earnings your employees make from your business. This does not just cover their basic salary or cash, NIC must also be paid on benefits such as car allowances, holiday pay and so on.

If you are self employed, you will also have to pay your own National Insurance as well as income tax, which is worked out separately.

 There are 6 different classes of National Insurance, each one depends on your earnings, whether you are self employed or an employer and the benefits you can expect throughout the tax year. For more information on which class you fall into it is best to speak to an expert in chartered accounting.

When you, as an employer, operate your normal payroll system such as PAYE (Pay as You Earn) the NIC will be calculated at the same time. This only applies to your employee earnings however,

3 How To Be Frugal?

Being frugal is not always easy in today’s busy world. You want to be frugal and you mean to save money but somehow you never quite get there. If this describes you and you really want to be more frugal, you need to start following a few simple rules.

Set Something Aside for Emergencies If you want to truly be frugal, you have to plan for the unexpected. You should include a set amount in your budget each pay period to handle emergency car repairs, trips to the doctor, home maintenance and the like. This money should always go into your savings account and not be touched until it is needed. Otherwise, it will be all too easy to reach for the credit card or take out a payday loan when your car needs a new tire today and you do not get paid until next week.

No Impulse Buys We have all been there. We see something at the store we just have to have, bring it home and then a week later we wonder why we bought it. To stop this from happening, make a rule against impulse buying. If you want something, wait at least a week to purchase it. This will help you determine if you really want it and if you can get a better deal elsewhere.

Play Money
Set aside a small amount of money you can use each period for play money. This is money you can spend however you want, no questions asked and no guilt involved. To really make this work, you need to get your play money in cash or else it will be very tempting to go “just a little bit over just this once” and end up wrecking your budget.

Cut Out the Small Expenses
Frugality is not just about controlling the major expenses; it is also about watching the smaller ones. This means limiting small expenses, such as the daily cup of coffee or the routine stop at the gas station for soda and candy bars. If you want to be frugal, you do have to sweat the small stuff.

Stick to Your Budget
The cardinal rule of frugality is if you do not have it, do not spend it. You should make certain all of your bills are paid and you are meeting your savings goals before spending any other money. If a purchase is going to jeopardize your financial security, do not do it.

Remember Your Goals
There is a reason you want to be frugal. Maybe you are trying to buy a new house or car, maybe you are trying to save for a trip around the world, or maybe you are trying to save to have a baby. The reason does not matter; what matters is that, when confronted by the double venti cappuccino or shiny new electronic toy that you want very badly, you remember that you want to reach your goals even more and take a pass on the purchase.
It may not always be easy to be frugal in today's world, but you can do it if you follow the few simple rules outlined above.

About the Author:

Sally writes on behalf of a number of successful businesses in the South West including DrummondLLP.co.uk a bookkeeper in Plymouth, Drummond LLP strive to deliver excellence and their service extends to the South West region. If you need a bookkeeperin Devon or Cornwall – Trust Drummond LLP to take care of all of your accountancy needs.

0 How to Save Time and Money by Working from Home

We are all looking for ways to tighten the reins and figure our place in the larger scheme of things. While the world economy and your local economy was likely go-go-gangbusters in the 1990’s and early part of the new decade, in the past few years the economy has been in a tailspin and people are not living nearly the same way as they once were. It is important, then, for those looking to make some kind of meaningful change, settle your debt, or at the very least not incur any new debt to look at all possible options.

One way to get help with your debt may be actually to work from home. Depending on what your skill sets are and depending on your current employment status is, you may be able to do great things and make a surprising and memorable change by eschewing work in the traditional sense and taking on work from home. What kind of money and time can you save working from home?

Gasoline: One of the biggest expenses many of us incur as we drive in and out to work every day is gasoline. How much do you spend every week on

0 Clever Ways to Make Money from the Property You Live In

Are you struggling to cope with the cost of living? As monthly outgoings for most people rise significantly it is only natural to want to find a way to make more money. If taking on a second job is not an option you will be pleased to know that if you are home-owner you could be making money from your home. So, what are your options?

Rent Your Spare Room

This is one of the oldest ways around of earning extra money from your home with companies such as Airbnb making it extremely easy to find tenants. Unlike in the past you can find lodgers for just a few days or for a Monday to Friday stay if you’d rather not have a lodger 24/7. So if you have an unused room this could be ideal for you.

Use Your Attic as Storage Space for OthersIf you have an attic or other area that is empty and unused you could charge people to store their possessions there.