Rent a House to Own – What to Watch Out For

With the recent problems in the credit industry, money’s a bit tight. It can be a bit more difficult to scrape together the requisite down payment that many lenders are after, now that most of the private zero down and creative mortgages have gone the way of the dodo. Rent to own can be a way for some of you to get into a house or condo without throwing away all your hard earned cash on rent. Like anything else, rent to own houses can be a great deal (depending on your situation) or they can spell doom. The devil is in the details.
How these rent to own, also called lease to own plans typically work is that you pay rent plus a small additional surcharge that goes toward your future down payment. You’ll usually pay an option fee for the privilege of participating in the whole shebang. In most cases you’re actually not renting to own, but renting with an option to buy. You will have to exercise the purchase option by the expiration of the option period.
What to Watch Out For in a Rent to Own House 1 – Contract stipulations - As with any other legal arrangement or real estate purchase, look over the contract very carefully. It should stipulate the price of the house, the length of the option period, the option fee, the rent payments, and the rent premium the potential buyer has to pay. In addition as a buyer you should be very aware of any other stipulations and clauses that could have you out in the street. In most rent to own housing arrangements, you will forfeit the fees and premiums if you are evicted, fail to make payments or decide not to exercise your rent-to-own option. Make sure the former isn’t too easy.
What to Watch Out For in a Rent to Own House 2 – Fairness - Make sure that the renal contract isn’t too one sided. In a few instances, sellers know they have a buyer with few options due to poor credit and/or few available funds. They can use the buyer’s desire to own a home, coupled with their relative lack of ability to do so, to put them into a one side contract. Don’t let that happen to you.
What to Watch Out For in a Rent to Own House 3 – Home Price. Make sure that the premium you pay isn’t too high. One of the goals is to be able to exercise your purchase option. You’ll have a much better chance of doing so if the house appreciated by the end of the option period. Similar purchase options on stocks, purchase options on homes state that you can purchase the house for an agreed upon price at some point in the future. You are gaining equity in the house as it appreciates above your option price. The goal is to accumulate sufficient equity such that securing financing is relatively easy, even with bad credit. Obviously the lower the home’s price, the greater you’ll benefit from appreciation.
What to Watch Out For in a Rent to Own House 4– The Real Estate market - In many areas home values are down. The question is how long they will stay depressed. If values stay low throughout your option period, you may not have enough equity in the home to purchase it. Evaluate the market in your area thoroughly before committing to such an agreement.
What to Watch Out For in a Rent to Own House 5 – Problems and repairs. Another section of the contract should determine who is responsible for any needed repairs to the property. It should state which party pays for different types of repairs. You don’t want to get stuck paying for a new roof, for instance, only to either decide not to exercise your option or be forced to leave.
The bottom line is that rent to own can be a great strategy to purchase a home, if you have few other options. It beats losing money on rent and can also be a great way to try out a neighborhood or home before you buy it. Just watch out for those details that can make your life a bit rough.

Renter’s Insurance, Pay a Little, or Lose Everything?

If you look at the risk involved in renting, it’s amazing that all renters don’t have renter’s insurance. In a situation such as an apartment or condo, where everyone is together in one structure, it only takes one tenant to inadvertently leave a pan on the stove and you’ve lost everything. It would be one thing if renter’s insurance was really expensive, but in most cases, it’s relatively inexpensive. You should be able to get renter’s insurance coverage for around $15 – $50 a month, depending upon where you live and how much you want to insure.

Make sure you get replacement value coverage. With many insurance companies, it will cost you an extra 10% - 15%, but since the premiums payments are fairly small, we’re not talking about very much money here. It will be worth it if you ever need to actually use your insurance.

Another bonus is that, in the event of a fire or natural disaster, most renter’s insurance will cover the costs of temporary relocation. That really helps if you’ve got to move into a hotel and eat out for a while as you find a new place to live, or your apartment is repaired. As with homeowners insurance, renters insurance will cover the costs of someone injured on your property (subject to the limits of the policy). In today’s society, that’s not a bad idea.

To get renters insurance, try your auto insurance provider. You may even qualify for a multi line discount. You can also check with friends for a referral to a god insurance provider.
The bottom line; it’s pretty inexpensive, and unless you own nothing, a little insurance is probably a good idea.

How to Find the Best Performing Mutual Funds

If you have and IRA or other investment accounts there's a great chance you'll count among your holdings a mutual fund or two. That being the case, you'll probably want to find the best performing mutual funds to maximize the power of your retirement savings. A mutual fund is basically a group of different investments run by a fund manager, who ostensibly knows more than you do about investing, especially in one or more particular areas.

In many cases, mutual funds are made up of different securities that have some type of similarity. There are funds that are made up entirely of stocks, known as equity funds. Others are primarily composed of debt instruments, these are called, appropriately enough, bond funds. Sometimes the funds are made up of stocks of companies with particular characteristics. These are classed according to the particular attribute that loosely defines all of the stocks that make up the fund. Some examples would be growth funds or value funds. Growth funds are made up of stocks that demonstrate capital appreciation, where value funds look to count among their holdings primarily equities that investment professionals feel are undervalued and have great potential for future growth.

Some funds are defined by their market capitalization (the total value of their outstanding stock). These are typically known as large cap, small cap, mid cap, and micro cap funds. Basically large cap companies are large, and small cap companies are small. Pretty easy, huh? Large companies are usually more stable, while smaller ones are more volatile, but can offer more growth potential (but that rule definitely does not apply not all the time).

There are also income funds. These babies are composed of financial instruments that pay good dividends, which are then either reinvested if the aim is to achieve growth, or withdrawn, if the aim is to sustain a lifestyle. Stocks that pay handsome dividends are typically from solid, established companies. They don't experience the same amount of capital appreciation, but are not as likely to depreciate either. For this reason, and the aforementioned income possibilities, they are often used by older investors that seek to obtain steady income and capital preservation to serve them in their retirement years.

Some mutual funds specialize in a certain industry or group of companies. These are known as sector funds. Examples would be funds that deal primarily in energy companies, transportation, electronics, communications, computers, and so forth. These have the potential for tremendous growth, if the particular sector is rapidly expanding. However, they can be devastated if the sector takes a large hit, as happened with many tech related sectors in the early part of this decade.

There are also mutual funds that are defined as combinations of terms, such as large cap value funds, or small cap sector funds. In such cases they are just more tightly defined for investors that are looking to more narrowly invest in stocks and/or bonds with certain characteristics.
Given the huge varieties of mutual funds available to the average investor, how can you find the best performing mutual funds, without sifting through financial data for endless hours? Many of you probably don't find that all too stimulating. Keep in mind that performance should mean different things to you depending upon your requirements and where you lie in your investing life cycle. Also remember that most investment advisers (I am not one) recommend a buy and hold strategy when aiming to maximize retirement savings.

Here are some ways to easily find the best performing mutual funds:

Best Performing Mutual Funds - Lesson 1 -Look at the past performance numbers. All mutual funds have published statistics to make comparing them easier. You'll be able to see how much they have gained this year to date, over the past year, five years , and since the fund's inception. Keep in mind that many excellent funds can have a down year or two, so be careful of letting poor current year performance solely determine your decision.

Best Performing Mutual Funds - Lesson 2 -Don't forget the expenses. Those fund managers have to get paid somehow. They are paid by charging the fund's shareholders a fee. The fees also cover administrative expenses incurred by the fund. This fee is often called a “load”. This fee will be subtracted from your returns, so it is definitely worth examining when making your decision. No load funds shareholders aren't charged a fee. Lower fees are better, obviously, but need to be viewed against the background of the fund's overall performance. This will be listed in the fund' prospectus as the “expense ratio”. Lower numbers translate to lower expenses. Remember that small numbers can add up to big numbers during the length of time you'll hold your investment.

Best Performing Mutual Funds - Lesson 3 -Take a deeper look inside. You wouldn't buy a car without looking under the hood, even if you aren't a mechanic. The same should be true for your mutual funds. Look at the industry the particular fund is invested in, and the companies that it holds. You don't have to perform an in-depth analysis, that what they pay the mutual fund company for. However, you should look to see if they hold anything that looks like an obvious dud. You want to stay away from any “here today, gone tomorrow” stocks, especially if you are investing with an eye towards that tomorrow.

These are just some simple rules to help you find the best performing mutual funds. Remember that a bit of caution now can pay huge dividends later (especially if you're investing in a value fund).

How to Save Money on LCD and Plasma TVs and Other Consumer Electronics

Well, it’s that time of year again. Soon there will be some fantastic day after Thanksgiving Day sales. These are known in the retail industry as “Black Friday” sales, because the Friday after Thanksgiving has long been the day that so much product was sold it transitioned many retailers from red to black on their P&L statements.

These days it is a day for stupidly low prices on may items, so if you have to buy a TV, HD-DVD or BluRay disk player, now’s the time. Here are some of the specials you can look forward to at many of the Nation’s big box retailers. These are leaked deals only; no accuracy guarantees.
Circuit City:Samsung Blu-Ray Player w/8 Free Movies -- $377.99 – once you get used to the quality of an HD-DVD or BluRay disk on a larger set, you’ll never be able to go back. Be advised, that movies are $20 - $35, however. You can rent them from NetFlix and BlockBuster though.Panasonic 42-inch Plasma HDTV -- $999.99**Polaroid 40-inch LCD flat panel HDTV -- $699.99Samsung 50-inch Plasma HDTV -- $1399.99**Samsung 50-inch Slim DLP HDTV -- $799.99Sharp 32-inch LCD flat panel HDTV -- $599.99Sharp 46-inch 1080p LCD flat panel HDTV -- $1299.99**Sharp 52-inch 1080p LCD flat panel HDTV -- $2199.99Sony Bravia 32-inch LCD flat panel HDTV -- $699.99Zenith 50-inch Plasma HDTV -- $999.99Toshiba 50-inch 1080p DLP HDTV -- $1499.99Best Buy:Mitsubishi 65-inch 1080p DLP HDTV -- $1499.99**Panasonic 42-inch 720p Plasma TV-- $899.99**Philips 32-inch 720p LCD flat panel HDTV -- $599.99Samsung 50-inch Plasma 720p HDTV -- $1399.99**Westinghouse 47-inch 1080p LCD flat panel HDTV -- $1299.99Toshiba 1080i HD-A3 HD-DVD Player -- $199.99 (Great, but WalMart had them for $100 less)Samsung 1080p Blu-Ray Disc Player -- $399.99Dynex 37-inch 720p LCD HDTV -- $629.99Dynex 32-inch LCD HDTV -- $449.99HP 42-inch 1080p LCD HDTV -- $996.99SearsPanasonic 56-inch LCD HDTV -- $1199.99Proscan 42-inch 1080p LCD flat panel HDTV -- $899LG 37-Inch LCD HDTV -- $899.99LG 42-Inch Plasma HDTV $899** (If it is the real HD version, not the 480p version)Samsung 40-inch LCD flat panel HDTV -- $1199.99Samsung 46-inch 1080p LCD flat panel -- $1999** (If it the 120Hz model)Samsung 50-inch Plasma HDTV -- $1399Samsung 61-inch DLP 1080P HDTV -- $1999Sharp 46-Inch LCD flat panel HDTV -- $999Sony 40-inch 1080p LCD flat panel HDTV -- $1999Sony 46-inch Bravia LCD flat panel HDTV -- $1499Sony 50-inch LCD 1080p Projection HDTV -- $1399Sony Bravia 32-inch LCD flat panel HDTV-- $999Sylvania 42-Inch 1080p flat panel HDTV -- $899Toshiba 42-inch 1080p LCD flat panel HDTV -- $1249** Vizio 32-Inch LCD flat panel HDTV -- $598
** = Great buy on a great set
If you are going to get away from your Debt Free quest for a major purchase, this is the time. If you don’t want to stand in line at 5 am, try looking online. Many of these stores will let you buy on-line then deliver the merchandise to your house.

Wal Mart as an Economy

Wal Mart is actually an economy within an economy. This situation exists almost nowhere else in American business. Total revenue for Wal-Mart in 2006 was about $345 Billion. To put it in context, that dollar amount exceeds the GDP ( according to World Bank figures) of the following countries: Poland, Austria, Norway, Saudi Arabia, and Denmark (not combined). It's about equal to Peru, the Philippines, and Singapore, combined. Wal-Mart also employs about the same number of people that reside in the cities of Seattle, Washington DC, and Boston combined.
Wal Mart has become a center of American life in many towns. Are they helping us sink deeper in debt to China? Definitely, but much of the blame for that can be placed squarely on the shoulders of consumers themselves. After all, if the majority of consumers would look farther than the price tag when they made their purchases, they may decide that the trade offs of buying non-Chinese produced products (if they could find them) would be worth making.
Why has Wal-Mart been so successful? A number of reasons, but two of the primary ones that stand out are their prices and the ultra efficient distribution system that allows them to be profitable at very low margins. Indeed, a 2003 study by economics professor Kenneth Stone of Iowa State University found that Wal-Mart's distribution cost per unit of sales was approximately one fourth that of Sears, and one third that of K-Mart (maybe one reason why K-Mart had to declare bankruptcy?).
Wal-Mart Super Centers can dramatically affect the economy of the entire county. Indeed, a Mississippi study in 2002 found that total sales in the counties with such stores were up over 10% beginning three years after the store opened over counties without Super Centers. Another finding cited in the Stone study was that when a building materials super center such as Wal-Mart, Home Depot or Lowe's is opened, it causes the gross sales in that town to rise by between $30 - $50 million.

Another effect of Wal-Mart on our nation's economy is cited by a 2005 study performed by economic research firm. They found that Wal-Mart made a statistically significant impact on keeping U.S. inflation at bay because of their low prices. They also found that Wal-Mart improved the entire U.S. economy's efficiency by .75 percent. Note here: The study was commissioned by Wal-Mart.

Many critics complain bitterly about the tactic used by Wal-Mart to secure such low prices, but vendors trip all over themselves in order to count themselves as one of the retail giant's customers. Perhaps it would be better to exclude them from one's customer list and avoid the pressure of succumbing to their every whim? After all, having such a large account is similar to the way taxes affect our government; once they get used to a revenue source, it is very difficult to let it go. Better to avoid it in the first place?

Prevent Credit Card Fraud – People Really Are Out to Get You

While doing some research, I discovered something pretty damn scary about credit card fraud. There are not only a few scammers here and there, and maybe some organized crime syndicates in Eastern Europe you have to worry about. There are thousands of people all over the world that are actively trying to find out how to pull credit card scams every day.

In a single day Google gets what I found to be a very surprising number of searches that pertain directly to the mechanics of perpetrating credit card fraud. For example, the search term “credit card generator downloads” got 873 searches, “credit card generator” got 407 searches, and the term “credit card reader / writer” got 1010 Google searches. This is in one, single, day! That means that on a single search engine (admittedly, the world's largest) for only three search terms on how to get the tools to perpetrate credit card fraud, there were 2,290 people actively trying to steal money from you, your credit card issuer, or from their perspective, preferably both. Perhaps I'm a bit naive, but I found that frightening.

Here are some things you can do as consumer to help prevent credit card fraud:
Sign your card card as soon as it arrives.

Don't keep your cards in your wallet. Keep them in a zippered compartment or a business card holder.

Record of your account numbers, their expiration dates, and the phone number and address of each company. Keep the record in a secure place.

Watch your credit card during a transaction, and get it back as soon as possible.
Void all incorrect receipts.

Destroy carbons created by non-electronic processing.
Compare your card receipts with billing statements.
Reconcile your card accounts monthly, just like your checking account.
Report any questionable charges promptly and in writing to the card issuer.
Notify card companies in advance when you change your address.
Merchants can help prevent credit card fraud on their end with some relatively simple strategies. As this sort of fraud is omnipresent and expensive for business owners, it's something they should be actively engaged in preventing. Here are some things that business owners can do to head off credit card fraud before it strikes.
Address Verification System (AVS) - This checks to determine if the card's billing address and the ship to address, or the address listed by the person trying to use the card match.
Checking ID – I'm always surprised by the number of employees that fail to perform this very simple step when I make a purchase. When I was a business owner this was grounds for disciplinary action. From the customer's perspective, it isn't a hassle. Most customers will be thankful that their ID was checked before their credit card was charged.
CVM – this is that extra 3 digit number on the back of the card. The trick is that this number is found nowhere in the mag strip information, so if the card is swiped by one of those fraudsters that steal your card by illicitly using a card scanner, they will not get the number. In theory, you actually have to have the card in your possession to have the code number. Most online merchants will demand it. If you aren't asked for it when you're placing an online order, shop elsewhere. If you're a business owner, you are crazy not to use this verification technique.
Payer authorization programs add an extra secret password that must match before the card will be approved. It does add an extra step in the checkout process, but if you, as a customer, don't have an extra few seconds to help prevent this growing problem, shame on you.
Hopefully these steps can help both merchants and consumers avaid credit card fraud.

Financial Misconceptions To Avoid – You Will Be Richer for It

When it comes to personal finance, a little misconception can go a long way. Here are a few that have been so oft repeated, they may as well be true, except they’re not in many cases. It can be expensive for you to fall into one of these financial traps.

Financial Misconception 1One such financial misconception that’s been spread around for years is that you have 3 days to make up your mind after you sign a contract. So, it's a bit of a legal misconception with large financial implications. If you decide you really shouldn’t have made the deal, you can cancel the contract. Well, that’s not really true, except in a few isolated cases. Where this can get really expensive is when you’re buying pricey items such as vehicles. You must check with your state AG’s office to find out what items in your state actually give you a grace period after you’ve signed a contract. In legal parlance the 3 day contract grace period is known as the “3 day right of rescission”.

In Washington for example, you have this right on certain products and services, such as health club memberships, some timeshares, and a few other select sales. In Texas, you can get a 3 day right of rescission on certain sales made at locations other than the seller’s place of business, with some exceptions, the same is true in Oregon. In fact, sales made in your home are one of the only places where the 3-day grace period applies in virtually all locations. The Federal law on the subject can be seen here:http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=/ecfrbrowse/Title16/16cfr429_main_02.tpl

In short, you should expect not to be granted any such rescission and treat it as an exception if you are lucky enough to get one. You must check your state’s laws to be sure.

Financial Misconception 2Another common financial misconception is that Social Security disbursements aren’t subject to Federal income tax. This isn’t true in many cases. It all depends on how much income you have from sources other than Social Security, and if file a single or joint tax return. If you file singly, you will have a greater chance of having to pay tax on your social security income. Look on the bright side, though; the IRS can never treat all your Social Security income as taxable, only 85% of it! Make sure you go over how you’ll be receiving all your sources of retirement income with your tax professional to ensure you get to keep as much of your hard earned SS income as possible.

Financial Misconception 3You can only contribute up to the IRS set maximum to your 401(k). For many, this is true, however, if you’re over 50 years of age, the Feds will allow you to contribute a bit extra, in the event you need to catch up to where your retirement account should be. For 2007, this catch up amount is $5,000. The amount is subject to your employer’s plan limit maximum, which can be smaller, so ask at HR to find out. There are similar catch up rules for those over 50 who have IRA’s, but the contribution limits are smaller.

Financial Misconception 4Paying the minimum payment on your credit card is enough. Hardly. Actually, even though the minimum payment percentages have recently been increased, it is still a brutally slow way to pay off your credit cards and is virtually sure to keep you in debt forever. If you want to have any chance of getting debt free, especially if you ever use your credit cards, you’ll have to pay more than the minimum.

The exception to this is if you have multiple credit cards. In that case, you should pay the minimum on all the cards except the one with the highest interest rate. That one you should pay as much extra every month as you can afford to. When it’s paid off, use the money to pay off the next highest card, and so forth, until you’re debt free.

The aforementioned scenario is about the only one where consistently paying your card’s minimum payment is the proper course of action (one exception would be a no interest card, in that case, you want to pay off the card as late as possible. This is because, assuming you pay no interest, the money you use to pay off the card in the future has less value than the money you would use to pay it off today.

4 Things to Check Before You Buy a House

If you are about to buy a new house, or are contemplating doing so at some point in the future, there are some things you should check before you sign the papers. A little judicious checking now can save you from some serious problems later. You could end up losing your house, or paying some serious money out of your pocket that could have been avoided.
Thing to Check Before You Buy a House 1 -This first thing to check before you sign the papers are the papers themselves. Have your mortgage contract looked over by a real estate attorney. In addition to that, you should peruse them yourself, even if you think it's all a bunch of legal mumbo-jumbo. Every day there are sob stories in the media about someone who claims to have been sold a bad loan by this or that lender or mortgage broker. Guess what? In many cases they got the loan due to their own greed and / or ignorance. Outright fraud or misrepresentation is one thing, but many times this never occured.

It's true that you should be able to trust your lender or broker, but far too many people were so eager to get their house or loan that they failed to even perform some basic due diligence. Come on, people! You are about to sign what is, for the majority of people, the largest contract of their lives. Before you do so, you owe it to yourself to have at least a basic knowledge about mortgages. If you don't know what an ARM is, at least find out before you agree to one! You should not only find out what it is, but you should be aware the financial implications of it.
Thing to Check Before You Buy a House 2 -Take a look at the neighborhood schools. Even if you will never avail yourself of their services, it is important to know about them for a couple reasons before you purchase your house. First of all, even if they are not important to you, they are to many people, and thus the quality of the schools in your neighborhood can have a major impact on the resale value of your house. Secondly, look at how they are financed. With many schools today, it seems to be all about the money. Where do think all that money comes from? That's right, the property taxes on your house. Some of the school's budget will come from federal and state grants, but much of it will come from your property taxes. You need to check on how they are paying for the schools, along with their levy and tax history.

Thing to Check Before You Buy a House 3 -Does your house have a propensity for flooding? Look at the FEMA flood hazard index and check the local news archives. This is vital if you think there's a chance of flooding. All houses are in a FEMA flood zone, it's just a question of the severity. If your house is in an area that has a flood history, you may get the short end of the stick when it comes to rebuilding after a flood. You can look up FEMA's flood zone info on your prospective house here:https://hazards.fema.gov/femaportal/wps/portal

After every flood there are plenty of people who lose everything who should have known better. If you build or buy a house in an area with a known flood history, you have no one to blame but yourself when the inevitable happens, and it floods again. Sadly many of these people look to the government (our tax dollars at work) for a bailout in this situation. I have absolutely no problem spending tax dollars to help rebuild a community in the event of a rare, serious flood. I do, on the other hand, object strenuously to spending our tax dollars to help someone rebuild their house, again, because they built on a lot only 5 feet above the level of river that floods every 5 – 10 years, like clockwork.

One note on FEMA flood zone data, it is being revised in some areas. Find out if your area is affected by the revision before using the data. In most cases flooding will not be covered by your homeowners insurance, so if you do sustain flood damage, the repair and property replacement will come out of your pocket. In addition, you don't want to buy a lot for your dream home, only to find out later that a home is un-insurable due to flood hazard. If this is the case, you'll probably have difficulty getting a construction loan to get the house built as well.
Thing to Check Before You Buy a House 4 -Look carefully at the CC&Rs. Many communities have CC&Rs (Covenants, Conditions, and Restrictions) dictating many things about how you can use, and what you can (and must) do with your house and property. This is legal contract you enter in to with your neighborhood's home owner's association. CC&Rs are just what some people want, because it mandates things such as lawn condition, and house color for example. They can keep you from parking your boat in the street, or limit how long vehicles are parked in front of your house.

You want to be aware of all the provisions contained therein however, because you do not want to buy a house with the intention of using it a certain way, only to discover that you desires are prohibited by the CC&Rs. This is serious stuff, so don't underestimate the importance of it. People have actually lost their homes fighting the home owner's association over CC&R provisions. It pays to be informed before you buy your prospective house.
These are just 4 of the myriad things you should be aware of before you buy a house, there are countless others, but many people never consider these 4 items.

Credit Card Bills and Autopay – Timing is Everything

One of the most important things to do when you have a credit card is to sign up for the card issuer's auto pay program. That will prevent accidental late fees that can decimate your finances by bombarding you with late fees and raising your interest rates. Upon examining one of my statements for a credit card that I recently switched to auto pay, I noticed this explanation: “The amount debited to your primary bank account will be automatically be reduced by the amount of any payment received.” What the heck??? Can you not pay any more than the minimum unless you send a check for the entire payment amount, plus any additional, thus rendering your auto pay amount zero?
Upon a brief conversation with the bank's CSR, it became a bit more clear. In order to pay extra and have your auto pay debit your bank account by the normal amount, your check for the additional amount you wish to pay must arrive at the credit card issuer after the auto pay date, but before the closing date of the credit card statement. Go that?
It's pretty important, because if you have your credit card set up to debit your account for the amount of the minimum credit card payment, and you want to pay extra, you have to ge3t your check in during the proper window. If not, you will only succeed in reducing the amount of your auto pay debit by the amount of your extra payment. If your check for the extra amount you wanted to pay was greater than the amount of the minimum payment due, you would only ending up paying the amount your check was for and nothing would be debited from your account for the auto pay.
Hope that makes it a little more clear than mud.

The US Will Lose Big With the Law of the Sea Treaty

Maybe most Americans don’t really care if we have control over our sovereignty. It seems that the 89% of congress that the American people think aren’t doing their job very well, and the President that 76% of Americans think is doing a crappy job are about to sell it down the river. They will be putting the United States in a subservient position, with little control over defense outside our borders, and other matters of international import. The Law of the Sea Treaty is one of the most dangerous documents to the continued existence of the United States of America, as we know and love it, that has ever been put forth.

Those who feel uncomfortable with unaccountable government officials in control over matters that affect them had better get used to it. Your congress and President are about to secede control of the majority of the planet to unelected, unaccountable internationalists ensconced in the corrupt, bureaucratic morass that is the UN. After experiencing the corruption that was the UN oil for food program in Iraq, or the UN “Peacekeepers” raping women and keeping sex slaves, does any among us feel the least bit comfortable allowing them to be in a position of authority over our nation in any way, shape, or form?

If you can answer yes to this question, perhaps you had better take a good, long look in the mirror. Jack booted thugs in blue armored personnel carriers rumbling through our streets? Perhaps not, but we’ll be losing precisely that control over our destiny that our forefathers fought the redcoats for over 200 years ago. Will we have any say in global events that affect us so greatly? Maybe but a whisper, if we’re fortunate, and toe the line as we’re asked. If we are signatories to this document, our time in the sun will have passed and the U.S. will cease to be the dominant force in the world.

Inasmuch as many would revel in seeing this come to pass, we should remember what we were able to accomplish for the time we held this esteemed position on the world stage. If you feel frustration with your inability to be heard by your elected officials, how will you feel when they are not only unelected, but have no interest in your opinion at all? In fact, there are many around the world, and even inside our borders that are wringing their hands with delight at the mere prospect that the U.S. will be foolish enough to sign the treaty.

For those of you that are unsure how an international treaty could possibly affect them, you should know that such a treaty is the ultimate legal document, superseding even our own Constitution. A treaty is the ultimate abridgement of our rights guaranteed us by the very Constitution, certain provisions of which a treaty would render impotent. If the prospect of yielding authority to such a legislative body frightens you, as well it should. Stipulations unfavorable to our national interests will have to be obeyed, as unpleasant as the consequences may be.

Taxes will have to be paid, treaty stipulations abided by. The U.S could easily be denied the ability to gather intelligence on foreign powers or terrorist groups that could be a threat to our citizens, either abroad or within our own borders. The UN will be a taxing authority, and yeas they will have authority to collect taxes from you. Even better, they’ll not spend your money building your neighborhood school, improving your roads, or hiring additional police officers for your community. The taxes collected by the UN would be distributed to other countries, and you’ll have no say in how or where your money goes. Will the UN be taking money out of your check or levying property taxes against you? Not yet. They have yet to figure out that angle (when they do, check your pay stub), but they will be collecting taxes from U.S companies, possibly the one your work for.

It’s very disconcerting that so many members of congress are eager to jump on such a dangerous bandwagon. By doing so they are yielding an unprecedented amount of our destiny to foreigners who definitely don’t have our best interests at heart. It seems many in our own government may not either. Write, call and / or email your member of congress at once to voice your opinion about this threat to our national future.
You can contact your senate and congressional members here:http://www.senate.gov/general/contact_information/senators_cfm.cfm
http://www.congress.org/congressorg/directory/congdir.tt

4 Things That Can Make You Free (Financially and Otherwise)

It’s sad, but true. Too many people slog through their daily existence, yearning with every fiber in their being to be freed from the constraints by which they’re bound. The greater tragedy is that many of these ties that bind are of their own making. Many of the decisions they make, for better or worse, conspire to keep them forever lashed to the pole of an ultimately unfulfilling existence. Why does this happen?

If you had a coffee with many of the same people at the beginning of their journey through life, they’d expound a fountain of ideas and dreams. Years later however, the demands and realities of daily life have pushed their dreams to the side, and most would be happy with just a few spare minutes or pennies they could call their own.

How can this tragedy of unfulfilled promise be avoided? Are the majority destined to be locked away in a prison of their own creation, forever barred from attaining their dreams and aspirations? Sadly, yes, for many that will be their reality. Only a select few will ever break free and rise to master, or create, their destiny. Why is this, and how can you be one of those that breaks free from the chains of the existence that falls sadly short of attaining much of that which you’ve been denied?

Ironically, it’s the very pursuit of the dream itself that deny many people the opportunity to achieve it. There are 4 things that can ultimately lead to a life of freedom and financial security. Many extremely successful people use these as basic tenets of their lives. If you have financial freedom, weather through needing less, or making more, many other freedoms will follow.

Key to Freedom 1 –Preparation - Lay a Foundation – You can’t only wish for success and freedom, you’ve got to plan for it. The problem is that too many people jump headlong into what they believe life should be, without ever planning on how to make it what they want. You can’t rely on decisions made on the fly to deliver the life to which you aspire. You must develop a plan that fits your goals and personality. You’ll than have a road map to follow. Few people would ever build a home, or begin any other complex project without a plan, yet with their lives, perhaps the most complex project of all, few people ever set out with such a roadmap.

Key to Freedom 2 –Timing – It’s been said that timing is everything. While this overstates things a bit, there’s no denying that timing is of the utmost importance. When the milestones in life happen, the order in which they occur can do much to determine your ultimate success.
Key to Freedom 3 –Frugality – More than almost anything else, frugality can and does impact where you end up in life financially. This is especially vital when you’re young, as many people underestimate the importance of a few dollars here and there. The other thing that frugality buys is the freedom from financial obligation that becomes so oppressive for many people.
In our consumer-centric society there is pressure to spend from every direction. It can take discipline to maintain one’s financial composure in the face of such a storm. A bit of need vs. want analysis doesn’t hurt either. Some restraint early can lead to huge returns, and the ability to relax later. It also establishes a pattern of spending less than you make, which is one of the cornerstones of not only financial success, but success in general. Many family problems stem from financial troubles.
Avoid the compulsion to spend, but yield to some wise investing, a behavior that too few young people exhibit. I was talking to someone today that was talking about buying some nice 19” chrome wheels for his car. When the subjecting of investing the $1,200 instead of buying the wheels was floated, he opined that he really had no desire to invest, as he’d just make more money later in life. The fact is that he may not, and he probably will never be able to catch up if he does. He’s 25 so figure that the $1,200 he spends today would have about 40 years of growth potential. Invested at 8%, it would grow to about $26,000. If he managed to get a 10% return, it would be worth $54,300. That’s just one exhibition of frugality, and investing the returns. You can see how one of these a year could add up substantially.
Key to Freedom 4 –Initiative – If you want it, you’ve got to do it. That is, for many, the hardest part of the journey. Far to may dreams go unfulfilled, and too many great ideas remain unrealized, because the dreamer never got around to making it into more than just a dream. Don’t make that mistake. Weather due to fear, laziness, feelings of inadequacy, or a lack of confidence in their abilities, the majority of those with the key to success in their hand, just never put it in the lock and turn the thing. It’s sad, but true.
Whatever it takes to make yourself actually get out of the blocks, just make it happen. After you’ve started you must apply perseverance until success and freedom are yours. Don’t rest until they are, but, at the same time keep your priorities in order so you don’t miss what life has to offer along the way.
Have a great, debt free weekend.

Types of Student Loans – How to Compare Student Loans

How many types of student loans are there? Well, it can seem like thousands, but in reality there are only 3 main types of federally guaranteed student loans. Federally guaranteed loans are the type you'll want, for many reasons, not the least of which is because they can be consolidated in the future without providing complicated documentation or putting up any collateral. In addition, they are easier to get if you have few resources, and really, why else would you be trying to get a loan in the first place? Here are the types of student loans and how you can compare them.
If you felt like you spent more time in you college's financial aid office than in class, you're not alone. Federal spending on student loans has increased by over 40% since the start of the decade. It now sits at $23,000 per U.S. household. Think about that the next time you think the feds are spending nothing on education. Sadly, that has barely kept pace with the increased costs of getting a college education. But federal spending for student aid of all types for parents of students, including loans, has jumped by, now sit down, 400% since 2001! If you're looking to help increase these numbers, here are the types of loans you'll be going after.
The 3 types of federally guaranteed student loans are the following: Stafford Loans, PLUS loans, and Perkins loans. Here's how they stack up.
Types of Student Loans
PLUS Loans - These loans are for the parents of eligible, dependent, students. Who are exactly are these eligible students? To be eligible for such a loan, you must be enrolled at an approved institution of higher learning, in an approved program, on at least a half time basis. The exception to this rule are that Graduate student are now eligible to receive PLUS loans. PLUS loans are provided through both the Family Friendly Education Loan (FFEL) program and the Federal Direct Student Loan program. As the name suggests, direct loans are available directly through the U.S. Department of Education, while FFEL loans are obtained from an approved private lender, such as bank. The parents will need to submit to a credit check to receive PLUS loans through either program. If the parents have marginal credit, they can use a cosigner to help get the loan approved.
A student can get up to the cost of school attendance, less other financial aid less other financial aid received for the term. It's easy to apply, simply submit the appropriate application. These are available from your college's financial aid office, or in the case of an FFEL loan, they can also be picked up at the lender's location. A completed FFEL application and promissory note will need to be returned to the school, who is also responsible for filling out a portion of the application. Once approved, there will be a check sent directly to the student's school.
The responsible parties are required to begin repayment of PLUS loans within 60 days of the time the check is sent to the school. Sorry no grace period, those responsible have to begin paying of the loan long before the efficacy of said payments are determined. The interest on these loans is fixed for new loans, although it was variable in the past. Currently, the rate sits at 7.9% for direct and 8.5% for FFEL loans. Prior to 2006, the interest rate was variable and re-indexed each July1st.
Perkins Loans – Perkins loans are for both undergrads and graduate students who can demonstrate exceptional financial need. (Really, don't all students have an exceptional need for money?) Perkins loans are made by, and repaid to, the student's school. Unlike with PLUS loans, there is no half time enrollment requirement for Federally guaranteed Perkins loans. Undergraduate students are eligible for up to $4,000 per year, while graduate students can get up to $6,000. The total available for the student's academic career is $40,000. Not all institutions of higher learning participate in the Perkins Loan program. You'll have to check with your particular school to verify their participation. Currently the interest rate for Perkins loans is 5% and they can be repaid over a 10 year period (the repayment period is subject to the total loan amount).
Stafford Loans – Loans de Stafford are also available in two flavors, like PLUS loans. As in the case of PLUS loans, both are available through either the U.S. Dept. of Education (direct) or private lending institutions (FFEL) and are available for students attending school at least half time. The difference is that Stafford loans are for the students themselves, not their parents. As with PLUS loans, there is a 10 to 30 year repayment period for direct Stafford loans, but it's possible to get Stafford loans in either subsidized or unsubsidized varieties.
Subsidized loans are for students that can demonstrate financial need. On these loans the government pays the interest until either 6 months after the student graduates or until 9 months after the student drops below half time enrollment status. It is also possible to request a payment deferment for Stafford loans, if a student feels they are currently unable to begin repayment of their loan obligation.
Unsubsidized loans are available to students without the requirement to demonstrate financial need. However with an unsubsidized loan, the government will not pay the interest. If a student takes out loans in excess of their determined financial need, the loans beyond the amount of financial need must be unsubsidized loans. Effective on July 1st, 2007 the limits on Federally guaranteed Stafford loans are $20,500 ($8,500 subsidized) for grad students. For undergrads, the limits differ for dependent students and independent students. Independent students are eligible for $7,500, $8,500, and $10,500 in their 1st, 2nd and 3rd - 5th years, respectively. For dependent students, Stafford limits are $3,500, $4,500, and $5,500.

Hire a Lawyer for Your Real Estate Transactions – or Pay the Price

When engaging in real estate (and other large, comlex) transactions, too many people feel that they really don’t need a lawyer. They might have their real estate agent look over the documents, and they might possibly use a stock, one-size-fits-all contract. You know, one of those fill in the blank, downloadable contracts you can find on the web. You will save a few bucks on the front end of the deal, there’s no question about it.

You can try to console yourself with all the money you saved by not hiring a lawyer to draw up or examine your contract while you’re grieving aver how you got taken to the cleaners. You may think you can just take this stuff lightly, and far too many people do, despite the advice of experts. However, failure to take this simple precaution can be fraught with peril. I have a neighbor who is selling their home and an adjoining vacant lot. They had listed their home and the lot as a package deal, with the lot at a $20,000 discount over its price if purchased separately.

A prospective buyer made an offer on both, but subsequently had their financing on the home denied. The financing on the lot however, was approved. The way the two properties were listed, and the way the contract was written, the purchaser was able to purchase the property for the discounted price, although they didn’t buy the home along with the lot. Needless to say (although I will anyway) my neighbor is a bit miffed over the whole situation, being out $20,000.

Paying a lawyer a few hundred or a thousand dollars to draw up the contract could have avoided this unfortunate situation, and my neighbor would have an extra $19,000 in the bank today because of it. Think about it the next time you’re tempted to bypass the important step of having your real estate lawyer examine a contract when you’re a buyer, or draw up a contract if you’re the seller. The money you save will be your own.

There’s nothing wrong with using a stock form for some things, or having one of those discount, on-line legal form services create your documents for you. They work well, and can save you substantial money for certain things. Real estate transactions are not one of them however. For that, you need the real thing. There’s nothing like witnessing something like that up close to drive the point home.Have a great Halloween. If you’re taking your little ones out and about to get their haul tonight, be careful.