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The Student Loan Explained

Posted by Jim Saturday, April 25, 2009 1 comment


The student loan helps the students to fulfill their dream. But it is not always true. There are also instance that nipped in the bud for this student loan. Have a look at the options available for you before student loan. You can check the video which states about the student loans in a unique way using play-doh. Hope this can help you to understand the student loan. After having the student loan students also have the option of school loans consolidation to ease off their burden off the debt.
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Health Insurance for the Low Income Family

Posted by Jim Friday, April 17, 2009 1 comment
Health Insurance for Low Income FamilyWhen we feel healthy, we never think what will happen if we fall ill. But it is true that every one can be prey of some disease either today or tomorrow. No one can stay healthy for lifetime. Even anytime we can have to face accidents too. But we seldom think for having health insurance except at the time of emergency. Urgency for health insurance can vary from person to person but it is better to take precautions.

Health insurance not only helps us but also helps our family at the time of emergency. It is always better to cover your whole family with the family health insurance. Today the cost for medication have rose very high and at the time of emergency it is very tough to arrange all the cost all of a sudden. So it is better to be safe.

Today the cost of medical facility is rising vehemently and like wise the cost for health insurance is also rising by leaps and bounds. For the low income families it is really hard to pay the hefty charge to secure their family.

Some state provides help for such families getting their health insurance policies. The low income family must submit a form stating the financial status to the government. Government can offer cheap insurance for them too.

Some websites are also offering cheap health insurance now-a-days. But there are also some companies are there that are giving false promise of coverage. So always choose your health insurance company after studying a lot about the company. Never go by the promises. Always check whether the company is government recognized or not. If the company is truly government recognized then you can be sure that you are in the safe hand. You can also read the reviews on the company and their policies available at different places. This way you can secure a better and tension free life for you and your family.
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More infos on Debit Cards

Posted by Jim Thursday, April 9, 2009 1 comment
Protection from identity theft in Debit cardsProtection from identity theft in Debit cards:

Many analysts tell people to choose PIN based debit card as there is a kind protection against the debit card theft. In case of signature based debit card anyone can grab your card and go for shopping but for PIN based debit card its not possible (as long as you can keep your PIN away from the thief).

There is some kind of protection in case the thief grabs your card and goes for huge shopping using your money. But all the protection is available only if you complain about the theft quickly.

Under EFTA or Electronic Fund Transfer Act, if you inform the bank about the theft within 2 business day, then your liability will be restricted to $50. But if you miss the 2 day time limit then your liability can be up to $500. In case of MasterCard and Visa cards, they provide "zero liability" if your card has been stolen. But this assurance is only given for the transactions within the company’s network. If the transactions had been done outside the network, then the liability will be according to the issuing company policy. The policy can be somewhat better or same as Electronic Fund Transfer Act.

Check out for the Hidden Fees:

Check out the hidden fees in the debit cards. Some companies take a monthly fee and some companies charge on debit transactions. Some debit card issuing companies also charge a fee if you use PIN based facility instead of signature based. So always be sure about the fees before using the card.


While buying an item using credit card, you have the option to withhold the payment if you are not happy with the item delivered to you. This right is also safe guarded by Federal Fair Credit Billing Act. But this act can’t be applicable on the purchases using debit card. So it is always advisable to use debit card for smaller purchases and credit card for the bigger purchases. While buying items online, it is always better to use credit cards instead of debit card as the consumer rights are better safe guarded by law for credit cards than the debit cards.
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ABC’s of Debit Card

Posted by Jim Tuesday, March 31, 2009 8 comments
Debit card usageWhenever you go to open a bank account, you can find the bank is providing a card called Debit card, some call it check card. The debit card can provide you more flexibility while you are in a shopping mood.

Normally ATM (automated teller machine) cards are used to take out money or other transactions at an ATM. But in case of Debit card you can use it at the stores too to buy items. At the time of purchase, the money deducted directly from the bank account. There is no such provision like "pay later" that is available with credit card.

PIN based and Signature based Debit Card:

There are two different types of debit cards can be found in market,
1. PIN Based 2. Signature based.

1. PIN based Debit card :

Some debit cards require PIN or personal identification number to complete the transaction. The direct or PIN based debit card deducts the purchased amount instantly from the bank account. Normally these cards are accepted in the gas station, supermarket, superstores (e.g.-Wal-Mart) and at medical shops.

2. Signature based Debit card :

Signature based debit cards also known as deferred debit card. These cards typically have a Visa or MasterCard logo and can be used at any shops or stores where these cards are accepted. After the transaction the card holder has to sign in the bill copy and the purchase amount will be deducted within 2 or 3 days.

Some banks provide both types of facility in a single debit card. While swiping the card ,the card holder gets the option to choose either PIN based or Signature based.
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10 Mistakes to be avoided while Refinancing Your Home - Part 3

Posted by Jim Thursday, March 26, 2009 5 comments
Refinance mistakes
7. Drawing money from Home Equity Lines of Credit (HELOC):

There must be minimum cash out waiting time before you take the cash out of your HELOC. Normally the lenders prefer it to be at least 6 months. A cash-out just before your refinancing can be a sign of your irresponsible credit usage. The lender can reject your loan application too.

8. Signing the refinance loan documents without proper checking:

Before signing in the loan documents, go through the terms & conditions in details. Request the lender to provide the papers in advance so that you can review it properly. At the time of closing it is not possible to check the minute details of the documents as everyone is in hurry.

9. Delays in providing essential document:

If you like you can avoid the unnecessary delay in time of closing. Provide necessary documents to your lender when it’s asked. Otherwise, your closing can be delayed and you can have to face higher mortgage rate and can results in drain of your hard earned money.

10. Giving money on Mortgage Insurance:

PMI or private mortgage insurance is to be paid when you found default on your mortgage. Sometime your mortgage payment increased due to PMI. When you have 80% equity stake in your house, then PMI cannot be demanded. If the refinance is less, then only you can have to pay hefty on private mortgage insurance.

Avoid these mistakes at the time of refinancing otherwise you can have to waste a huge amount of money just for your ignorance.

You can check the previous posts of this post - Part 1 & Part 2
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10 Mistakes to be Avoided while Refinancing Your Home - Part2

Posted by Jim Wednesday, March 11, 2009 9 comments
Refinance Home
Continuation from the previous post 10 Mistakes to be Avoided...Part 1

4. Having a verbal (not in written form) Rate Lock :-

Don’t go by the words. Have a written document about interest rate, closing cost, APR and all the fees related to the refinance. The loan officer can offer you a lower rate but this can change anytime, so better to have a written statement about the related costs for you home refinance. This is easily available as Rate Lock Commitment. Always ask for your copy and keep it as record.

5. Not having a Good Faith Estimate (GFE)

Within 3 business days of receiving your loan application, your lender must provide a GFE or Good Faith Estimate about the closing cost. This can trace you whether any hidden cost is being levied from you or not. This can save your lots of money and also keep you away from the problems. If you haven’t received the GFE, then rush to the lender to get it.

6. Paying for an appraisal despite the lower home value:

If you know that your appraised home value is low, then don’t agree to pay for appraisal. If you like you can request for a home valuation using the automated valuation model (AVM). In this model the lender and realtor carries a market analysis based on the price of the other houses in your locality. These comparisons can help to save a lot of your money when the realty prices are going down day by day.

Checkout for the rest 4 mistakes in the next post - 10 Mistakes...- Part 3

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10 Mistakes to be Avoided while Refinancing Your Home Part 1

Posted by Jim Sunday, March 1, 2009 10 comments
refinance mistake
Many are there who are unhappy with their recent loans and like to refinance it to have more suitable loan or low interest rate. But before taking any decision they must be aware of the most common mistakes people while refinancing. A wrong step can lead you to sleepless night for rest of the life. Let’s have a look at the top 10 mistakes that people commit while refinancing.

1. Not checking the market for better option :-

 Some people believe it is easy to deal with the current lender at the time of refinance. But the offer of the current lender may not be best in the market, so better to have a look at the options available at the market. Comparing the offers you can get the right choice. Some prefer stick with the present lender as you don’t have to re-qualify for getting the new loan. But it’s a misconception as whenever you apply for a refinance, the present lender will also verify your present financial situation and you have to qualify again. So it is better to shop around in the market.

2. Going with the assessed value of your property :-

Your loan amount doesn’t depend on the value of your property assessed by the tax assessor of your country. The loan amount depends on the appraised value that the real estate agent finds. Generally the appraised value determined through cost approach or the sales comparison approach.

3. Skipping the Break Even Analysis :-

To find the cost effectiveness of your refinance loan, try to check the total money that you are going to spend in getting the loan and how much you can save with lower monthly payment. You can calculate it by dividing the transaction cost by the monthly amount of money going to be saved by the new loan. Just have an example: If your refinance cost is $1000 and monthly saving is $25. Then your Break Even point will be 1000/25 = 40 months. In this scenario you can opt for refinancing if you want to stay with the refinance loan for at least 40months.

For next part Check out 10 Mistakes to be Avoided...Part2
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