Tricks to Making Money With Credit #2 – Keep Those Finance Charges Down

Do you have a car loan, home loan, credit card, or are currently financing anything else? Well then you know all about interest rates and finance charges and its enough to make you sick to your stomach. The fact is that for many people over 25% of their monthly expenses come directly from interest rates and finance charges. Think about that 25%, that means if you have $2,000 in bills every month that include your credit card payments, car and home loans, health and car insurance, cell phone, internet, television, electric and water that $500 of that goes just to pay off a finance charge. That’s an insane rate of your income going to that, and what makes matters worse is that you end up paying off less of your overall debt first.

The best way to lower your bills, especially on your interest rates, is to make sure you have a good credit score so you can modify the loans or terms of the deal. Many companies do not want you to stop making payments and will work something out with you to lessen the load each month, and if you have a good score they are more serious about it. If you do have a low score however you do have some options. Credit repair can fix a score damaged be; bankruptcy, lawsuit, missed payments, foreclosure, repossession and much more, in a matter of weeks. The process is fast and simple, and very effective. Credit repair is the fastest and most dependable way to repair your credit score, and many people have already taken advantage of it. Its affordable, and the work is done for you. Why over pay on your monthly bills when you can get them much cheaper and save a lot of money?

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Finance Charges: They’re What?

As a borrower compares interest rates from one lender to another when making a decision about which mortgage company to use, the process can be a bit confusing, to say the least. However, the federal government, in all their wisdom, issued a directive for all consumer loans to disclose the Annual Percentage Rate, or APR, to help the borrower compare loan offerings.

The APR is defined as the cost of money borrowed expressed as an annual rate and takes into consideration not only the interest associated with the loan but additional fees needed to close the loan as well. For example, a 30 year mortgage loan at 4.00% on a $200,000 note results in a $954 monthly payment. If the lender also charged a $2,000 origination fee, the APR figure is 4.08. If the lender charged $4,000 in origination fees the APR is 4.17. The higher the lender charges the greater the disparity between the interest rate on the loan and the APR number.

But what are those fees used to help calculate the APR? They’re called finance charges. And all lenders have them.

Finance charges are fees charged directly by the lender or are charges for services required by the lender in order to issue a mortgage loan. A lender can have a $500 processing fee, a $400 underwriting fee and a $2,000 origination charge. Those fees, charged by the lender for lender-performed services are included in the finance charges.

A lender will require several reports before issuing a mortgage yet not perform those services themselves. For example, a credit report and an appraisal will be a required report but performed by third parties. Since the lender will require certain third party reports those third parties will provide the requested information but the borrower will ultimately be responsible for paying them.

The greater the amount of finance charges, the higher the APR number will be compared to the interest rate. Even if two lenders offer the same mortgage rate, they can have two different APR numbers. The lender with the lowest APR in this example will have lower closing costs compared to the other lender. This is how you compare loans from different lenders. Notice the APR and understand how it’s calculated.

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Defining Credit Card Finance Charges

There are other fees associated with the use of a credit card besides the actual charge from each purchase. These other costs can add to the total balance on your account that you have to pay. The common credit card fees you will encounter at some point are the annual fee, the APR, late payment fees and the finance charge. The finance fee is added to it every month while the others are less frequent.

The credit card finance charge will be the dollar amount that you have to pay to the credit card provider for the use of their lines of credit to make purchases. This finance charge will be different depending on the APR or annul Percentage rate of the card. This is how credit card finance charges affect you card balance.

Your individual credit card company will have its own policies and approach to calculate the finance charge for your card. The outstanding balance will determine how much you will end up paying in credit card finance charges each year more than the APR will affect it. You need to understand how your outstanding balance is calculated.

The outstanding balance on your credit card may be calculated during one billing cycle or within two billing cycles. You must note that there are three types of balances which are used to figure the amount of your annual finance charges. These balances are the adjusted balance, the average daily balance, and the previous balance. Each of these balances has something in common, in that you will need to decide if new or recent purchases will be counted as part of the relative balance. When you have done this, you can then calculate the credit card finance charge. The finance charges will vary depending upon the billing cycle based on the carry- over balance and the timing of different purchases and payments.

Many of the credit card companies provide credit cards that operate under what they call a minimum finance charge policy. With this type of finance charge the cardholder is given a flat rate for the finance charges each year. This will mean that the rate will not vary or fluctuate because of differences in the card’s balance each billing cycle. Your minimum finance charge is activated when your card has a carry-over balance that goes into the following credit card billing cycle.

There is no way to avoid the credit card finance charge. It is a necessary cost which must be paid in order to continue using the convenience of the credit line to make purchases. This means that it is important to have a good idea of how they work with your particular credit card company. You should have a working knowledge of what affects the charges that are added to your balance that you will have to pay. What would you do if you are assessed a wrong amount and then pay for something that is not applicable? You must spend some time studying your credit card terms and uses in order to know what to watch for.

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Credit Card Finance Charges Aka The Gift That Keeps On Giving – Forever

Do you ever really stop and look at your entire credit card statement when it comes? Most consumers look for the minimum due payment and that is what they send. The Credit Card companies know this and count on it. The vast majority of profit made on credit card portfolios is derived from finance charges and other fees.

I will be the first to agree with anyone that says that credit cards should come with a warning label attached, much like cigarettes. Credit Cards are the driving force behind most people’s financial cancer. During the heady days of 20 percent yearly equity lifts on your property, it didn’t really much matter. Everyone could just go and refinance their house, pay off all those cards and start fresh. Or so everyone thought!

I am not one of those people that feel bad for all those poor mortgage people that are out of work right now because frankly they fueled the problem. When mortgage brokers were pulling in $20k or more in monthly commissions giving loans to people that they had no right doing is unconscionable. This behavior is the exact reason that I left the credit industry.

Finance charges are the reason that if you had a $2000 credit card with a 19 percent interest rate will take you 17 years to pay off if you only paid the required monthly due and never use the card again. Now most banks have altered their required payments from 2 percent to 3 percent to reduce the payoff time. Don’t confuse this change with the banks and credit card companies wanting to do the right thing for the customer. They were required to in an effort to quiet the buzz that has recently been brought to light through congressional inquiries.

If you keep nothing other than the Card itself when the new plastic is sent to you, SAVE THE CONTRACT. This is singularly the most important document in understanding how your finance charges are calculated. Make no mistake here every piece of that contract is there to protect the bank and to increase their profitability. Visa and Mastercard have certain requirements that are also built into the contract.

Now there are so many different types of methodologies that the card issuers use to calculate your finance charges that I could write an entire book on the subject and five minutes later it would be out of date. There are groups of analysts at every since credit card company that their primary job requirement is to determine new ways to “squeeze” money out of the portfolio.

Steps you should take to understand your finance charge calculation methodology:

1. Call every credit card company that you do business with and request that they send you a copy of your agreement. Make sure they send you the most updated version, because they typically change them every year. a. Some banks may try to charge you for this information; however you can usually talk them into giving you a freebie. This can be dependent on how long you have been a customer of the card company.

2. Create a file to keep all of these copies.

3. Once you get the contract, READ IT! Yes, you will need to get out a magnifying glass because they all use tiny fonts to get all this information on one 3 fold piece of paper.

4. If there are terms in your contract that you do not understand, use the web to figure out what it means or better yet call your credit card company and ask. This is a great way to find out how well the companies that you do business with actually train their people. (You may find that you will be talking to someone in India, Costa Rica or any other low cost outsourcing country.

5. Always read every piece of paper that comes addressed from your credit card company. They are notorious for sticking the “Change in Terms” inside the statement that no one reads.

On a final note, with the “green movement” taking over every company and becoming so en vogue, I personally do not opt in to the “online statements”. The credit card companies are using this green movement to line their pockets. Guess what, it costs them millions of dollars in paper and postage to mail all those pesky statements to their customers. I personally like the paper statements. Call me old fashioned but it makes it a whole lot easier to sit down and do your budget and pay your bills when you can actually hold them.

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How Credit Card Finance Charges are Calculated

The finance charge for your credit cards is usually determined by the amount of your outstanding balance on your card account and the current APR (Annual Percentage Rate) you are being charged. Card issuers tend to use one of three ways to determine your charges. The outcome of theses various formulas is not the same; so it pays to know the differences literally. is the dollar amount you pay to use credit. The amount depends in part on your outstanding balance and the APR.

Credit card companies use one of several methods to calculate the outstanding balance. The method can make a big difference in the finance charge you’ll pay. Your outstanding balance may be calculated using the adjusted balance, previous balance (sometimes referred to as two-cycle), or the average daily balance as the reference point. Check your card agreements terms if new purchases and/or cash advances are also included or excluded as this varies from provider to provider.

The average daily balance is the most common calculation method for interest and or finance charge rates. Everyday in the billing period, your balance is updated with any credits or refunds. With some credit card issuers, any new purchases are also added. When the end of the billing cycle comes around, daily balances are added and divided by the number of days in the billing cycle to arrive at the “average daily balance.”

The adjusted balance method is the most beneficial method for cardholders. Credits received during the current billing cycle are deducted from the balance at the end of the previous billing cycle. Purchases and/or cash advances made during the billing cycle are not reflected in the total. Basically, if you pay your bill before the end of the billing cycle you don’t get stuck with finance charges.

With the previous or two-cycle balance method, the average daily balance is figured from two billing cycles rather than a single one. As a consequence, this increases the finance charges one must pay normally. There usually is no grace period included with this method and if the bill is not paid in full the interest may be made retroactive back to the original purchase date.

It is also important to note that many credit cards also carry a minimum finance charge. Regardless if your calculated finance charge is lower, you will still be required to pay this charge. However, if no purchases or cash advances have been made during the duration of the billing cycle, generally you will not be assessed and charges. Nevertheless it is generally wiser to check the particular card in question’s terms of service and fee schedule.

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What Is The Cost Of A Physician Disability Insurance Cover?

Owing to the fact that the resources and assets at people’s disposal are shrinking day in day out, human beings have learned to be careful when it comes to spending. They will always remember to ask the question of what the cost of something will be. There are high chances that some people are interested in taking physician disability insurance and are wondering how much it will cost them. If you are one of them then keep reading to learn more.

Sincerely speaking it might not be possible for and individual to quote the exact cost of taking such a cover. Any person who comes up with such a figure might be wrong. They will be wrong because the conditions surrounding a single person might not be the same conditions surrounding another person. To determine therefore the amount of money an individual will be expected to part with will depend on some aspects which include the following:

Age of the insured

Once a person makes up their mind to go for Physician Own Specialty Disability Insurance then they should stay informed that their age will determine the amount of money they will have to pay as premiums. In most cases the amount of premiums increases as the age advances. This means that the younger a person is the cheaper their policy will cost.

This should be a motivating factor to the young people. They should try as much as possible to go for these covers because if they wait longer the price of the policy will go high. Taking this advantage can be a wise decision in one’s life.

The gender of a person

In most cases people forget thinking about gender of the person taking the cover. In general, the females have high chances of facing the risks insured against. This will imply that the higher the chances of getting impairments the more amount of premiums an individual should expect to pay.

Those people who are of a masculine gender will purchase the cover at a relatively lower price compared to their counterparts of the other gender.

Health history of a person

The health history of an individual can tell us more of what we should be expecting. Those people who have been having several ailments or those whose family tree is known for certain defects should be prepared to part with large sums of money. These health complications have high chances of making an individual suffer from a risk insured against.

An individual with a clean history in health issues should therefore be prepared to pay less amount of money in terms of premiums.

The type of policy

The insurance companies offer a wide range of policies. This means that when making a choice an individual should make sure that comparisons have been made. For instance an individual who gets attracted to the Guardian policy should be ready to pay a lot of money because this is the most expensive policy. So when taking Own Specialty Physician Disability Insurance the type and nature of policy taken is greatly vital to a person.

There is no way all these aspects can affect an individual negatively and therefore there is need of getting worried of things like one is a female, they are of an advanced age, or they have bad reputation in their health history all shall be well.

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Why Should One Go For Professional Disability Insurance?

How does it feel when a person is employed, is working and all is going well? They might be tempted to think that they will remain in such states for a very long time. The most important thing an individual should begin by appreciating is that the events of the next day, next hour or even next minute are uncertain. This is why a person should make sure that they have taken necessary precautions so that they can continue enjoy living on this earth.

It takes a few minutes to contract an impairment. To make the matters worse, there are some impairments which might make one unable to continue working. For instance, think about a news reporter who gets involved in an accident and ends up losing all their legs. Probably they will no longer be able to attend events and report as they used to do before the occurrence took place. This stretches to other several professions and therefore taking precautionary measures is what an individual should plan for. Some of the reasons as to why taking Own Occupation Disability Insurance policies remains benevolent to an individual include the following:

Ensures financial security

Every human being who is employed today has dependents. They also depend on what they earn for their daily upkeep. It might not be easy for such a person to survive and continue supporting the people they were supporting after an impairment given that they will no longer be employed. An individual who had taken a Professional Disability Insurance is assured of a happy living because they will be compensated.

There are some companies which pay up to 75 percent of what an individual used to earn. Even though an individual will be receiving less than what they used to earn, the most important thing here is that they have something to survive on. It can be frustrating for an individual who has no money, no employment and cannot work but has bills to settle.

Allows one time to transit to another profession

There are various types of professions across the world. Once an individual becomes disabled such that they cannot continue performing their work well, they should think about changing their profession. For instance in the case of a reporter, they can become an editor.

In most cases some training will be necessary to allow these people take up new roles. The compensation they receive will help them to go for such training activities. An individual who has nothing might not be able to change their profession because they lack moral and financial support.

Grants one mental solace

Think about someone who is bedridden because of an accident. This person has no food, no money and they have exhausted their savings. Such a person will have to survive at the mercy of friends, relatives and other well-wishers. At some point they might be taken as a luggage to those taking care of them.

When a person mentally surveys all these conditions and realize that it was not their mistake, they might contract mental frustration. The only way such a person will be healed is by getting an assurance that they have support. There is no need of waiting for an assurance that might never come. One has to go for Professional Own Specialty Disability Insurance and all shall be well with them.

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Get The Best Americas Doctor Disability Insurance

It is very important for doctors in America to have disability insurance. Unlike many other professions they work in an area of high risk. No doubt they are well trained educated and are working 40 hours a week, most of the time on their feet.

They need insurance to take care of any eventuality in their life wherethey fall ill and have to take rest. It is become extremely difficult for physicians to get disability cover in their own specialty. There is work being done at Doctor’s Disability Shop so that doctors can avail of a discount to get disability insurance for their ‘own specialty’

How Does Own Specialty Insurance Work?

Doctors are given the opportunity to choose their ‘own specialty’ disability insurance plan that is ideal for them. Once the doctor has decided on the plan, it is easy to apply since it is done electronically and does not require any paper work.

Disability Pro protects your income so you can provide for your family when you are faced with a disability. All that the physician needs to do is get the right amount of coverage. Disability Pro helps you to meet your financial needs when you are disabled and cannot take care of your patients. You can get remuneration which is equivalent to your own specialty.

Physician disability insurance covers the physician in his own specialty. The insurance stays with the physician even though he changes his employer. He can get up to $15,000 in monthly benefits. If it is catastrophic disability the doctor can get nursing at home and health care. All physicians get 15% reduction while AMA members get 35% reduction.

Physician’s Disability Insurance Policies

There are different types of disability insurance policies that physicians can avail of. They are Mass Mutual, MetLife, Berkshire Life (Guardian), Principal, and Union Central Life. Many of the provisions are same in each of the companies. But there are a few differences which may help to choose the particular insurance company.

It is very important to classify the medical specialty to determine the premium rate. The higher the occupational classification assigned to the medical profession the lower is the premium rate. Different companies may assign a different class of occupation to the profession which might change the rate of premium. The financial planners or the agents are in a better position to advise the best insurance company to insure as per the medical specialty.

The Best Physician Disability Insurance

Like all professions doctors also take precautions to see that health and life insurance are taken care of in their life and try to invest wisely for a good retired life. But many times they do not take into account a disability or injury.

The chances of a disability and injury are quite high and at such times it is difficult for social security, worker’s compensation, insurance and savings to meet all the bills. Disability insurance is a necessity. You have to know what the coverage that the disability insurance provides and the policy that is not taxable. The agents are the best people to guide you in taking the right policy.

So, if you are a physician who wants to take disability insurance contact the agents to find out the best policy for you.

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Why Do You Md Own Specialty Disability Insurance

When it comes to insurance types that are usually very much ignored, disability insurance tops the list. This is due to the fact that you hardly see people paying for disability insurance as they are more concerned about auto insurance and the more popular type of insurances. Generally, you might not know about habits you indulge in or the fact that your health is deteriorating regularly until you are suddenly down. Furthermore, there are also a number of sudden disasters that could suddenly make an individual disable in an instant, especially accidents. This is apart from the unpredictable nature of the body as illness or disease that could lead to disability can attack an individual in an instant.

Md own specialty disability insurance is a type of insurance policy that covers a good percentage of your monthly income from your job in the instant that you are suddenly unable to do any time of work. Overall, you will be protected in terms of your finances, should you become unable to work. Most people find it difficult thinking about disability as nobody wishes to be disable. This notwithstanding, there are several people who due to one disability or the other cannot work. With a disability insurance, you will be protected from having to face serious financial hardships if you suddenly become disable. Here are some reasons why you should have a Md own specialty disability insurance.

Income Loss

A major reason why you will need Md own specialty disability insurance is as a result of income loss. If you are losing your source of income due to disability, you will be getting some paid sick leave. However, the expenses on diagnosing what is wrong with you, treating it and recovering from the disability could be huge. Furthermore, your monthly expenses such as feeding and toiletries amongst others will continue. Even though your medical bills are to be covered by a medical insurance, you can still become stranded due to the other expenses. Furthermore, when your source of income is completely cut off due to disability and you have bills to continue to run, own specialty disability insurance can go a long way to help you cater for your bills.

Medical expenses

Even with your medical insurance, the increasingly expensive cost of healthcare can be a major challenge. You will need to continuously pay bills and buy drugs all through the period you need treatment and recovering. There are cases where a therapists or other specialist might be required to speed up your recovery. All of these require a lot of money. The transportation to and fro the hospital for check-ups will also require spending more money.

Other expenses

Miscellaneous expenses will also come up while you are suffering from your disability and unable to do any paid job. Having enough money to still sometimes make yourself happy such as going for dinner and even attending birthdays and other celebrations with friends, will go a long way to save you from a stressful and boring life, during your period of disability.

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Disability And Disability Insurance For Doctors

Disability has been described as a condition in which the sufferer is unable to perform optimally the normal day to day functions which they used to be involved in. For doctors disability is a condition in which they are unable to attend to their patients any longer. They cannot carry out surgeries or go to clinic and all the other numerous activities which they are usually involved in.

During the course of work and over a period of time, it is possible for a doctor to develop some kind of disability or the other which can seriously impair the functions of the doctor. Doctor Disability Benefitsdescribes the way which insurance can be used to ensure that doctors do not suffer unduly in the case of any eventuality and they get disabled and unable to work.

Some of these disabilities include

1. Cardiovascular diseases and diseases of the circulatory system- this might be due to the fact that long hours are spent standing up and working. It has been noticed that a lot of doctors suffer from heart diseases and circulatory system health challenges. When these sicknesses impair and affect the normal day to day function of the doctor then his ability to function and attend to his clients is impaired.

2. Musculoskeletal illnesses- the long hours of standing and not sitting down can also affect the bones and joints of doctors. This can lead to illnesses such as rheumatism, arthritis and the likes. One problem with these illnesses is the amount of pain which sufferers go through over the course of the illness. This suffering makes it most of the times impossible for doctors to attend to patients and perform surgeries.

3. Mental disorders- doctors are also human like the people they treat and so they are also prone to suffering from whatever illness which humans suffer from. One of such problems is psychiatric illness. Some doctors while on the job have been seen and reported to have exhibited erratic behaviour. When this wrong behaviour was brought under scrutiny, they found out that the doctors were actually suffering from one mental illness or another ranging from plain depression to schizophrenia and even manic depressive disorders. All these illnesses will certainly affect the doctor’s ability to function optimally and properly. In such an instance such a doctor might be asked to stop working.

All the illnesses mentioned above and much more can deter a doctor from being able to continue to function well in the capacity which is expected of him. When a doctor suffers from any of such disabilities, it will be a thing of sadness if such a doctor does not have an insurance plan. A disability insurance plan is a kind of insurance plan. If a doctor takes out a policy which has disability insurance as the thrust of its focus, such a doctor is better placed to ride out the waves of life which such disability has thrown at him.

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