What We Don’t Know About Liability Insurance
Today, it is almost impossible to find cheap liability insurance. Even though risks may be infinitesimally small each premium carries with it the additional burden of ‘wild optimism’ cited by former Federal Reserve chief, Alan Greenspan.
The biggest bail out of recent times wasn’t for a bank. AIG, an insurer in the US with thousands of dodgy mortgages on its books, was bailed out for $182 billion dollars. A week after the firm received the bail-out employees blew nearly half a million dollars on spa treatments and champagne at a weekend getaway to discuss ‘strategy.’
We’re the schmucks who pay for all this of course. As well covering the actual cost of risk we end up paying the bonuses of bankers and brokers and traders. They have managed to get to the top of the pyramid and cash out. We’re still stuck lower down watching our money, pensions and life savings burn.
The idea of offsetting risk has been around a long time. Liability insurance has existed in one form or another since Roman times. Merchants in the middle ages would share risks in order to minimise the effects of inclement weather or erratic navigation.
Time was when there was no Fire Brigade as such. Insurance companies each had their own fire services who would rush to fires only to watch uninsured homes burn to the ground.
Today we’d think it absurd for the Fire Brigade to be forced to make a profit but this is exactly what happens in other areas, like insurance against burglary. Far simpler, surely, to indemnify everyone in an area through a local taxation system and use profits to improve policing.
Public liability insurance helps businesses cover themselves against the growing compensation culture in Britain. Of course it’s reasonable for negligence to be punished and those who have suffered injury or loss to be compensated. Problems arise when over-zealous lawyers put a price on everything and insist that we’re all ‘owed’.
The insurance industry skims billions from the economy each year and has bet even more.
Working with a debt advice company
Asking for professional debt advice may seem like something of a contradiction in terms to some: When you’re already hard pressed for cash and incurring losses at the end of each month, why pay a debt management company on top of all the other expenses you already have? The answer is simple: Because the benefits of professional debt advice can far outweigh the costs and you may soon find yourself returning to the black again. Debt advice is not just about providing you with a couple of helpful hints. It is about putting you back into the driving seat and allowing you to determine your own financial future again. Sounds good? Then let’s take a closer look at the many different benefits of debt advice.
Debt advice can improve your spending patterns
Let’s face it: Debt doesn’t just happen overnight. Bad luck may be involved in some cases. But mostly, it means you have simply been spending more than you can earn. The path to financial health may sound simple in theory – simply start buying only what you can afford – but it is rarely quite that simple to put it in practise. Professional debt advice can be helpful, because it can tell you precisely where your problems lie and how to deal with them. As an impartial outsider, a debt advice manager will be able to analyse objectively, which of your spendings are really necessary and which aren’t, what options are at your disposal to raise your income and what to do if things really become unmanageable. At the end of the day, you may have to make some tough decisions nonetheless. But at least you can be sure you’re taking the right ones.
Debt advice can yield valuable insights
Anyone can browse the Internet for snippets of information and articles relating to a particular issue. But it takes years of experience and a deep understanding of the topic to put the pieces of the puzzle together. A sensible debt advice manager will be able to, among others, work out whether debt consolidation – the process of merging your credit cards, loans or other personal debt into one monthly payment – makes sense in your particular case. He or she may even be able to speak to your creditors and bring down your debts.
Debt advice can ward off bankruptcy
If all goes well, by providing you with the information you need and speaking to your creditors, you will be able to avoid personal insolvency. But even if this should not be possible, it doesn’t necessarily mean that you need to file for bankruptcy straight away. Depending on your situation, you can alternatively apply for an Individual Voluntary Arrangement (IVA), which is similar to bankruptcy but comes with less burdensome conditions and less severe long-term consequences. Or perhaps you qualify for a Debt Relief Order, which is intended for those with next to no income and comparatively little debts. These alternatives can have seminal consequences for your financial well-being and your peace of mind, as they tend to be far less troubling than the often severe bankruptcy procedure. The major benefit of sound debt advice lies in determining the right solution for your needs.
What all of this means, simply put, is that working with a professional debt advice company can be of great value! In fact, it can make the difference between having to apply for bankruptcy – or reaping the full benefits of debt advice.
Don’t Rush Getting More Credit Cards in the New Year
Credit cards, credit cards, credit cards. Get ready for more advertising on credit cards. After all, it’s profitable — a lot of people are going to be tempted to get a new credit card because of what they see on television and what they hear on the radio. And even if you don’t really tune into either of those things, that doesn’t mean that you’re not going to get tapped to do something when you least expect it — after all, you still get mail, right? Right! Direct mail advertising for the credit card industry is HUGE. This means that there’s always an opportunity to offer you a new credit card.
Still, you really need to make sure that you really do think about whether you really need a credit card. You don’t want to rush into it for a lot of reasons. Need some new reasons to not rush into a credit card? No problem — here’s what we think.
First and foremost, you have to make sure that you are in a stable financial position. Just because you know that a credit card company will grant you credit doesn’t mean that you should go with it. You need to make sure that you actually focus on whether or not you can truly afford it. Even if you don’t use it much, it’s still something that could have an annual fee. You would basically be paying for the possibility of using credit when you want to, but do you really want to pay for the privilege of holding someone else’s money. In addition — every dollar you give the credit card company is one that you don’t get to use to put into your future endeavors. This is something that can be problematic, because you take away from the other goals that you have in your life. For example, you might be thinking about getting a house. A house is going to take up a lot of money, and if you’re deep in credit card debt, you’re not going to be able to get the house that you really want. It’s better to actually think about the type of credit life that you want and go for that rather than thinking that you have to get a bunch of credit cards. In fact, if you’re just going to have a ton of credit cards that you never really pay back, you’re only doing yourself a disservice for the long run.
If you are going to get credit at the top of the New Year, you really need to make sure that you focus on the basics. Pull your own credit reports and really look at them. Just because you have a vague idea of how you think your credit looks doesn’t mean that it will necessarily be the case. This means that you have to get hard numbers.
Don’t just stop at your credit report. Look at your budget — can you honestly say that you can afford another credit card? If the answer is yes — then enjoy the credit card offers. However, if you knew that you can’t, you might want to take your time.
Just because you don’t get a credit card now that doesn’t mean that you can’t revisit the topic in six months after you’ve had a chance to get your financial life in order. And of course, it also goes without saying that if you haven’t started your own savings, there’s no way that you should even be thinking about a credit card. This is not the right way to have an emergency fund. This is where a lot of people get themselves into trouble, because they think that having a credit card means that they can lean on it in tough times. This might be true for a while, but you have to eventually pay that money back and it can be difficult to do this when you’re struggling in other areas. Then the interest spirals out of control, which makes it feel like you can never get back to normal.
No matter which decision you choose, we really do wish you the best of luck!
The Scoop on Instant Approval Credit Cards
Getting new credit is something that you have to be ready for. You need to make sure that you are planning out your credit because if you don’t, you could really hurt your credit score. It’s no secret that the more credit you apply for, the worse it looks on your behalf. You really need to make sure that you focus on the bigger picture from start to finish. We’re not saying that you can’t get new credit every once in a while. In fact, it’s a good way to make sure that you actually grow your credit over time. But make sure that you’re giving it at least six months before you apply for more credit.
So let’s get to the point — what about instant approval credit cards? Don’t they represent the very best in getting credit cards in the first place? After all, if you’re really thinking about getting into credit, chances are good that this is where you’ll start.
Keep in mind that a lot of credit cards now do let you know where you stand online in roughly 60 seconds or less. However, you’re going to need to make sure that you think about your options if you’re rejected.
Instead of just shrugging it off and going on about your life, why not look into getting a copy of your credit report? This is covered by law — if you are rejected because of what’s in your credit report, you are entitled to a free copy of your credit report. In some cases, you can even get your credit score. It’s better to make sure that you can focus on improving your credit with each applications rather than just assuming that everything will just be fine and dandy.
However, if you are approved, you still need to make sure that you’re looking into the fine print. You need to figure out what type of compounding you’re dealing with, and how your interest is going to be calculated. You really also need to make sure that you think about the annual fee that is going to come with the credit card — is it something that’s going to be billed to your card when you get it?
In addition, you also want to make sure that you don’t rush out to max out the card. That is a red flag to lenders that you really might not be able to handle credit the way you claimed you would be able to handle it. At the very start, lenders of credit assume that you are going to be handling things in a responsible fashion. That means not only charging smaller percentages of your limit, but also paying on time.
Tend to Your Back Taxes Now – The IRS Is Watching!
Back taxes can creep up on the best of us, but that doesn’t mean that we should let them just stay hiding in plain sight. Even if you try to ignore back taxes, they definitely have a way of getting your attention. For one, the IRS has the power to freeze your accounts, garnish your wages, and even put a lien on your property. These measures are designed to get your attention. You definitely want to make sure that you focus on actually getting things in order.
Some credit repair fans might remember something called the statute of limitations, but that doesn’t mean that you’re going to be saved by that at all. On the contrary — until you file your tax return, there’s actually no statute of limitations clock running. That means that the IRS holds the right to collect that money indefinitely. That could mean a very costly battle that you don’t want.
You see, until you file, you’re going to be penalized for not filing — getting the IRS’s attention this way is not wise. You will have a 25% penalty due to failure to file your taxes. If that wasn’t enough, there’s also a 0.5% penalty for failure to pay your taxes — it’s charged from the date that the return and payment were due until the month that you pay the money. There’s also 4% interest per year charged on the money. That means that you’re going to end up paying a lot of money the longer that you hold off on paying your taxes.
So it’s just better to get it all over and done with — but how do you actually get started?
Well, you have to remember that you need to file your taxes by paper if you’re talking about back taxes. While this can be frustrating, the truth is that the online world can still help you out. While you can’t file back taxes online, that doesn’t mean that you can’t use tax software to figure out all of the math. This means that you will also be able to see what your penalties are going to be.
You will probably need to work out a payment plan. You might be surprised at this, but the IRS is actually very willing to work out things with people. Don’t forget that when you go in to turn the paper return to the IRS that you take lots of photocopies. You want to make sure that you have a record of actually what was turned in. There are also local field offices that can take your return. Setting up a payment plan might be confusing at first, but you can handle everything online.
The most important thing that you can do is do whatever you want to make sure that the back taxes issue doesn’t matter again. Now is a slow time of year, and this means that it’s the perfect time to start looking at how you can make your tax time more efficient.
First and foremost, online software is definitely a good idea. Forget hunching over your desk trying to figure everything out for yourself. Let software take care of that for you. The cost of the software is actually a tax deduction for the next year that you do your taxes, so it actually benefits you in the long run. Just make sure that you save your receipts!
Speaking of receipts, did you know that this is the number one reason that people get slowed down in the first place? They end up thinking that they have all of their records, only to find that they don’t. So they slow things down and end up costing themselves a lot of time in the long run. It’s a lot smarter to make sure that you focus on the things that you can fix.
Yes, you’re going to have to pay the IRS to set up the payment plan, but it’s a lot better than having the interest constantly hanging over your head. And if you show the IRS that you are trying to pay, you’re going to be able to avoid the negative collection efforts. And just in case you’re wondering — it’s very hard to discharge tax debt in bankruptcy. This is another reason why it’s a good idea to pay your taxes as much as possible.
For the self-employed, if you’ve gotten behind in your taxes due to filing problems, make sure that you correct this now. Look into paying your estimated taxes a little more so that when tax time comes around, you might even have a refund. It’s a lot better for the IRS to actually cut you a check than having to pay them.
Don’t forget your state taxes in all of this, unless you live in a state that doesn’t have a state tax.
That’s about it — be careful out there and make sure that you remember to handle your taxes with care!
The Best Route to Clearing Debt – Get Your Friends Involved!
If you’re thinking about finally taking care of your debt this year, you’re definitely not alone. A lot of people are seeing the year come to a close and they really want to make sure that they are still making all of the right moves financially. When you know that your finances aren’t quite where they need to be, you can feel pretty lousy about that. However, this is not the time to get caught up in a web of what is and what isn’t. It’s better to start thinking about what you can do to turn the situation around.
The best path to a brighter financial future is to actually get your friends involved. The last thing that you really want to worry about is trying to hide things from the people that matter most to you. And since you probably tell your friends everything else, why not talk about the money situation a bit more? It would be smarter to always think about your situation rather than just assuming that you cannot get anything done otherwise. That would just be wrong and not make any sense at all.
Your friends are probably not nearly as hard on you as you think they will be. So why not tell them what you’re really going through? Real friends are going to stick by you no matter what happens. The secret that you might not realize is that not only will your real friends stick by you, they will also make sure that they do everything in their power to make you stay on track.
Of course, no one can really make you stay on track but it’s a lot easier to make smart financial decisions when your friends are standing behind you. Why wouldn’t you want to make sure that you get things under control and settled when you have your friends in your corner?
You might be surprised at how easy things run when your friends support your decisions. You might have more nights at home in order to save money, or you might build a carpooling circle so that you can get help when you need it. It’s completely up to you to figure out exactly what you want to get done, so don’t feel like you have to make too many decisions at once.
You just need to make sure that you try your best, as always!
She Has Better Credit – Should You Have Her Finance Things
Credit and relationships are two topics that a lot of people don’t see actually going hand in hand, but they really do. If you don’t have good credit and someone else does, there’s going to be an uneasy balance struck. You will probably need to ask them to help you finance things that are going to benefit the both of you. However, is that always a good thing?
There’s a lot of potential for hurt feelings, so it’s really important to make sure that you really think about everyone’s feelings before you ask for anything. Everything needs to be done in writing. Yes, when you’re in a relationship there are a lot of things that really just happen because it’s what you both expect. However, if you’re really trying to make this relationship last, it’s really going to be in your best interests to really make sure that you are as clear as possible. Far too often verbal agreements cause fights because everyone remembers a slightly different version.
The biggest fear is that you’re not going to pay back the money that you borrow, or the account that you significant other is going to set up for you. It’s better then to get everything worked out in advance. Sure, it’s tempting to think that you’re going to have zero problems at all, but why would you want to deal with the risks when it’s just easier to have everything worked out ahead of time.
No matter how you shape your agreement, it’s very important that you don’t back out of it in any way. You really want to make sure that you aren’t just going through the motions to say that you’re going to pay something back. If you don’t, not only will you have to deal with small claims court, you will have torn apart a really good relationship.
Think about how you would want to be treated if someone was trying to get money from you. It would make you feel bad if they didn’t pay you back, right? That’s the attitude that you have to keep when you are trying to get something out of your significant other.
Limit your requests to things that are really going to benefit you both — that way, everyone feels included! Good luck out there!
Do Salaries Really Matter When it Comes to Fighting Debt
Are you tired of living in debt? Are you sick of fighting day after day to get your credit situation taken care of? You are definitely in good company, but the good news that you need to hear is that there is hope. You can get over your debt problems and build a better financial future. However, it really does take getting the right information, believing that information, and then building yourself an action plan. Yes, it’s tempting to just get upset and angry, but that’s not the approach you should take. It makes a lot more sense to push forward and make sure that you are taking care of things in the exact manner that makes sense for your needs.
So where you do you go from here? After all, the first thing you might be thinking about is how you’re going to fight debt when you feel like you don’t have enough money to do that at all. This is a natural feeling, and it’s perfectly normal to feel that way. The truth is that it’s about getting a budget together and then living by that budget. Now, it’s important to realize that you might not like your budget. You might actually hate your budget because it means changing your spending. You have to always frame things in the right terms and focus on the right thing from the start. It’s going to be tempting to blow away your budget, the way some people blow away their weight loss plans. Yet this is not the time to really worry too much about your budget, lest you never set one at all.
A good budget is something that’s going to have to be fluid. A good budget is something that you will probably need to change as you gain more information. A good budget is honestly what you make of it. If you go in thinking that you can’t get a budget, then you won’t.
You will also need to make sure that you pull your credit file and start looking at everything involved with your report. Are there errors? If that’s the case, you’re going to have to get them solved before you can apply for any credit of any kind.
Don’t think that you have to spend life as a cash customer just to get ahead in life. There’s a time and a place for cash, and there’s a time and a place for credit. The salary you have doesn’t matter as much as how you spend your salary — don’t forget that!
Can Men and Women Be Equal Partners When it Comes to Money
Money is a funny thing. Something that is definitely apart of our lives, but we tend to feel like money doesn’t matter. It’s just something that ends up hurting you in the long run. Something that causes fights. Something that makes people envy and get greedy.
However, what you really have to realize right up front is that money didn’t do any of those things. It’s how people interact with money. It’s how you handle credit. It’s how you build your budget. It’s what type of career that you launch yourself into.
Can men and women really be equal partners when it comes to money? Sure they can — but it takes work. You’re going to have to have an open discussion with your partner and figure out where your partner’s head really is. If you only focus on the positive parts and ignore potential problems, you’re going to have trouble before you know it. The only way to get people to realize what you really want to accomplish in life is to step forward and claim the life that you really want. And that starts with good communication.
If you and your partner aren’t on the same page when it comes to money, things aren’t going to work at all. It would make a lot more sense to go ahead and make sure that you have things discussed out in the open. A lot of people avoid doing this because they think that if they actually open up and start talking about the future in those types of terms, things aren’t going to go well. Here’s the truth that you need to hear — if things weren’t going to work out, you’ll know ahead of time. It’s better to have radical and complete honesty than to just go through the motions.
This all relates back to your credit, because if you’re going to enter into a serious relationship where finances are actually going to be shared, you’re going to need to learn how to get all of this taken care of before you end up slipping further and further into icy financial waters. The wrong person can really mess up your credit, but the right person can take your finances to amazing, incredible heights! Good luck out there!
A Cut In Debit Card Fees – Will You Feel The Impact?
There has been big news recently about the proposed plan to cut the fees that retailers pay to banks each time a customer uses their debit card. This news has caused quite a stir in the financial services industry and organisations involved on both sides of the argument are going to great lengths, financially, to convince lawmakers that they are only doing what is best for the American public.
Retailers have claimed have that these proposals are nothing but a gift from to the banking industry and many retail groups are claiming that the plans to postpone the fee reduction is nothing more than yet another bailout for the already much maligned banking sector. However, financial analysts and banking experts have said that the fee reduction is like the retailers receiving a $12billion dollar gift.
Caught somewhere in the middle of all this are the consumers. As it stands John and Jane Doe have a pretty low opinion of the banking sector at the moment but having said that, they aren’t too hot on the retailers either during times of economic hardship. Whilst conflicting surveys from retail groups and banking sector analysts have proved to be contradictory, the planned proposals are still very much up in the air for all concerned.
Some people have gone on record claiming that are sick of the way banks have treated them over recent months and see this as another kick in the teeth of consumers from the large financial institutions. Some consumers have even threatened to stop using their cards all together, opting instead to use cash transactions only.
More of a concern for the general public is how all this will affect them. A cut in fees could result in a wide range of debit card perks and discounts for many consumers. This would happen because retailers would be greatly encouraged to try to get customers to use their debit cards as opposed to using their credit cards. This could see discounts for debit card users at gas filling stations, as well as increased loyalty rewards and savings on luxury purchases.
The down side of all these savings that consumers can expect to be charged higher bank fees as the banks look to make up for the lost revenue from the debit card transaction fees. The reduction in fees could also see a cut back in banking services such as telephone and online banking. The alternative to these cut backs is consumers being charged extra to make up for the shortfall created by the loss of debit card fees.
Despite the uncertainty and potential extra charges that consumer could end up receiving when using their debit cards, it would appear that debit card usage is actually on the increase and this has been the case since 2009. Despite the recent economic crisis, many experts claim that debit card use is preferred by consumers who see it as a good way of making sure that they are able to live within their means.
