Is Debt Consolidation The Right Option

Is Debt Consolidation The Right Option

The economic recession we have all been suffering through over the last few years has created many problems for those of us with debt. The combination of a mortgage, car payment, and several credit cards in addition to your normal utilities can create a lot of stress. If you are feeling overwhelmed with all of your debt and need some room to get back on track, then debt consolidation could be the right choice.

What are the benefits of debt consolidation?

  • These loans typically have a low interest rate but sometimes can be high depending on your lender. This normally results in you paying less interest than you would by paying your payments normally. It’s always great when you can save a little bit of money and make your life easier in the process.
  • You would have only one monthly payment instead of however many you currently pay. Lot’s of times you have payments spread throughout the month and when you are struggling to pay your bills on time it can be difficult to pay them all on time. With one payment you have a lot less to worry about and can send it out on time every month.
  • It will stop all of the annoying phone calls reducing the amount of stress.

Am I eligible for debt consolidation?

  • One of the most important things lenders look at when considering this type of loan is a steady and consistent income. The lending institution will likely ask for proof of income so be prepared.
  • You would want your credit score to be in fair condition when applying for the loan. Most lenders won’t feel comfortable lending to someone who has shown they are unable to pay their bills on time.While some late payments may not be a deal breaker you should try your best to keep your credit clean.

This type of loan works best for those who are nearly unable to satisfy all of their debts on a timely basis. Waiting until you have already defaulted on your obligations may be too late. If you do qualify for a debt consolidation loan you may want to consider entering credit counselling to help you manage your finances better in the future. Remember, old habits die hard.

Re mortgage online: using the internet to find re mortgage rates

Re mortgage online: using the internet to find re mortgage rates

Searching for a re mortgage online may be a suitable way for you to find numerous quotes quickly and easily.

When you are looking for a remortgages quotation there are a number of aspects you may wish to consider.

Interest rates

Interest rates are dependent on the type of policy that you wish to obtain. A flexible rate remortgage may be worth considering if you have an income that varies throughout the year. A flexible remortgage may have higher interest rates than other policies.

A fixed rate remortgage policy may be suitable for you if you need to be secure in making the same payments every month. A fixed rate remortgage should give you this option which may be an advantage if the Bank of England base interest rates rise significantly.

Remortgage fees

  1. When you are looking for a re mortgage online you may wish to take into account the fees that are associated with remortgaging;
  2. arrangement fees. These fees will be payable when you have finalised your remortgage arrangement;
  3. broker fees. If you have arranged a re mortgage online through a broker you may also need to pay a fee to the broker;
  4. legal fees. These may be payable to protect you if anything goes wrong and you need legal advice;
  5. early repayment charges. If you need to repay your remortgage early then the lender may have early repayment fees;
  6. valuation fees. If you apply for a remortgage, your lender may request a formal valuation of your house. They sometimes charge a valuation fee in order to do this.

Length of the policy

A remortgages quotation will very dependent on how long you will need to repay the loan. The longer you take to repay, typically the more the policy will cost overall. If you choose a remortgage over a shorter period of time then the monthly repayments may be higher. If you are approaching retirement then a lender may wish you to have a shorter term policy that you can repay whilst you still have regular income.

Calculating your budget

When you are choosing a re mortgage online you may wish to calculate your monthly budget carefully so that you can establish how much you can afford to pay. Many online comparison sites as well as the sites of mortgage brokers have a budget calculator to help you to do this. You should be able to enter your income and outgoings so that you can ultimately find a remortgage that will suit your needs.

FHA Loans: Recommended Loans for You to Invest in New Homes

FHA Loans: Recommended Loans for You to Invest in New Homes

FHA loans are mortgages issued by FHA, the Federal Housing Administration in the United States. Every FHA loan is secured and guaranteed by the FHA, so, the debtors are able to use the loans under any condition. Even when they default, the lenders also have no right to cut off the loans, because the FHA will pay off the money.

With a FHA loan, the buyer is able to purchase a new house with very small down payment. Like VA loans, FHA loans are not accessible to all the individuals. FHA loans also have strict limitations on the qualifications of applicants. The requirements for FHA loans applicants are listed as following:

  • You should own at least two years of steady employment, preferably with the same employer
  • The last two years income should be the same or keep increasing
  • Credit card report should have less than two thirty-day delays in the past two years, and the credit score should be more than 620
  • Your bankruptcy must be at least two years old, and you must have perfect credit after that
  • For foreclosure applicants, the foreclosure must be at least three years old, with a perfect credit after that

Why FHA Loans Attract People So Much?

FHA loans are now among the most famous loans in the United States. They are preferred by many people for a host of appealing features:

  • Small Down PaymentsFHA loans really offer great help for the debtors. They allow the applicants to get new homes and houses with only very small down payments, as low as 3.5% of the appraised value of the new properties. For example, if the market price for the new house is $1000000, you are able to get the new home with only $35000.
  • Few Closing FeesDuring the settlement process of the loans, you will be asked to pay off some required closing fees, and there is no exception to FHA loans. But FHA loans charge much less on closing fees than other loans do. Necessary closing fees for FHA loans just include lender origination fee, attorney’s fee, appraisal fee, home inspection fee, title insurance, deposit verification fee and taxes.
  • Credible GuaranteeYou can obtain very strong and reliable protection by getting FHA loans. The Federal Housing Administration centre will be happy to help you under any circumstance. If you run into some financial crisis and can not afford the monthly payments, the Federal Housing Administration will pay for you. So, you do not need to worry that the lender will repossess your houses once we default the loan.
  • Low Interest RatesThe interest rates for FHA loans vary from fixed rate FHA loans to adjustable rate FHA loans. But they are much lower than the market rates. For example, the interest rate for a 15-year fixed rate FHA loan was 2.750% in 2011, and the annual percentage rate was 2.945%. A 5-year adjustable rate FHA loan may offer a 2.250% interest rate and 2.971% annual percentage rate.

The Importance of Budgeting BEFORE you buy a home

The Importance of Budgeting BEFORE you buy a home

Jaime Osborn here. All the way from Memphs, TN. I am a real estate agent and Mortgage Loan originator for Weichert Realtors Benchmark and Benchmark Mortgage.

Stewart and I got together last week and decided to do some guest posts for each other. Since we are both professionals in our fields we thought it would be a great idea to share some of the knowledge we have in our fields with our individual readers. His post will be running at my website Blog For Buyers.com

Since I am in real estate and I originate mortgages, I decided to make my post about the importance of budgeting when purchasing your first home. You have NO IDEA how difficult it can be to truly enjoy yourself in your new home if you didn’t budget correctly and maybe got in over your head. Often time the term people use for this situation is “house poor.” “House Poor,” simply means that you have a nice home, but since you bought at the VERY tip top of what you could afford (or what you got pre-approved for regardless of whether you could afford it or not), you don’t have any extra funds to go out and enjoy yourself. Being “house poor” because of the lack of budgeting, means you are forced to stay in on Friday and Saturday nights, because all of your funds are being used to pay your bills. Sometimes in the most drastic of cases people aren’t even able to adequately furnish their new home because they didn’t budget for new furniture. For those of you who have experienced this, I feel for you. I went through it as well, when I bought my first home!

Budgeting can save you from this terrible situation! But It is extremely important to make sure you sit down and set up a budget before you get started looking at homes. Doing so will allow you the luxury to know that you will be able to still enjoy life after you purchase your new home. Budgeting doesn’t have to be a long, drawn out, complex thing. It could simply mean figuring out what you bring home ($$$) adding up all of your bills and figuring out how much is left. If you have money that you are currently using for rent than compare that to what you would use to pay your mortgage with, if you don’t figure out what you can afford to spend on housing costs.

It is important to go over your current bills, BUT also keep in mind that other additional bills may, excuse me no, “will” come up after you move in that you never thought about. For instance, do you know if trash pick-up is included in your city taxes or will that be an expense that you have to pay for out of your pocket. What about your utility bills? If the house you are buying is larger than where you currently live, or maybe less insulated, or possibly even if it has less efficient appliances, than you can expect an increase in the utility bill. What about keeping a small little stash just in case your toilet has problems or you need a window fixed. In addition to these issues, there are lots of other unforeseen expenses that come with owning your first home, and the only way for you to find out what all of them are is to buy your first house, there isn’t any way for one person to be able to tell another what their expenses will be, all I can do is warn you that there will be many of them. From replacing broken bathrooms mirrors, to fixing leaky faucets, to replacing warn out carpets, there will definitely be lots of them.

So once again, it is very important to sit down and formally write out a budget for yourself before you start looking at homes. Most lenders will honestly let you borrow more than you should, and this one fact can make you house poor IF you haven’t taken the time to think your budget out and decide how much you plan on spending for your housing costs. So remember a simple budgeting exercise before you start looking could mean the difference between being “house poor” and enjoying life to the fullest in your new home!

If you have specific questions about the home buying process, or would like to to be referred to an agent in your area that understands and can educate you along the way, feel free to get in touch with me on, Facebook, Twitter, or You Tube.

Get to Know about Foreclosure after Bankruptcy

Get to Know about Foreclosure after Bankruptcy

If individual is planning for filing a bankruptcy case then they are well aware of the chapters in bankruptcy rules namely chapter 13 and chapter 7. However, it is important to understand which chapters will work the best.

If individual are worried about foreclosure after bankruptcy then they must file it under chapter 13 to get the maximum benefit. Let us take look at this article, to know foreclosure laws and how foreclosure after bankruptcy works.

Preventing foreclosure during bankruptcyNow if an individual has filed for bankruptcy then it temporarily stops for foreclosure in most cases. Now reader must be inquisitive to know why this happens. Then read this.

1. A legal protection act known as automatic stay effects soon as individual files for bankruptcy case. Automatic stay stops all collection actions, including creditor calls, repossession and foreclosure.

2. This protection typically stays intact after or rather during the period of bankruptcy case. That could be as little as four to six months for a chapter 7 case and one filed for chapter 13 will continue from three to five years.
Automatic stay last as long as filer thinks to stay or rather stick to the bankruptcy terms and agreement. In chapter 13, that means making regular monthly payments according to the repayment plan that is pre-set.

If the filer is not able to catch up on mortgage payments even with the help of bankruptcy, foreclosure might still be an option after the bankruptcy case ends.

Liens, Second Mortgages & Foreclosure after BankruptcyWhen filers have second mortgages or home equity lines of credit when they file for bankruptcy then things get a little tricky. However, individual should thank housing market that collapsed in 2007 so many Americans currently do have multiple mortgages or loans attached to their homes. Now let us learn how they can be treated at the court:

In chapter 13 filers are required to make payments to their primary mortgage lenders and to their bankruptcy trustee; here the trustee distributes these payments among the priority debtors. After the case gets concluded the home equity lines of credit gets eliminated. Lenders will get a percentage of trustee payments during the case.

Chapter 7 helps to cancel the debt on a home equity credit line, but it is not able to cancel the lien that creditor has on the house. This HELOC can still foreclose on a filer’s case after bankruptcy is over. Now if individual wants to avoid post chapter 7 foreclosure that helps to reaffirm payments to a HELOC lender during bankruptcy.

Second mortgages are no longer secured by their home value can be discharged in chapter 13 bankruptcy. Now the homes locate underwater may have second and third mortgages this are not secured any longer by house value. However, discharging a second mortgage will not effect what a bankruptcy filer owes on his or her first mortgage.

How could individual face foreclosure after bankruptcy?If an individual is thinking to file for a bankruptcy as a way to escape foreclosure then it is essential to speak with a bankruptcy lawyer to make sure that they understand how their mortgage will likely affect after the bankruptcy filing- whether or not the individual can face foreclosure after one get themselves discharged of their debts.

Author’s Bio: Alicia Johnson is a head on outreach expert at FusioBPOservices.com who has closely exhibited BPO processes and financial outsourcing. Fusion BPO is globally acclaimed for their frontline lead generation services and telemarketing solutions to their client companies.

Steps to Buying a House: Checklist & One-Year Plan For Home Buyers

Steps to Buying a House: Checklist & One-Year Plan For Home Buyers

All of us dream of buying a house one day. If you are in a habit of making your dreams come true, this is one dream you can achieve if you plan properly by managing your personal finances. As easy it is to say you are buying a house, it actually needs a lot of pre-planning, starting almost a year before you even look for a house. So you better start well before time. Go through the following checklist before you start looking of a house.

A Year before Buying

Get Your Credit Reports Checked and Sorted

Credit score not only help you in getting the mortgage; it also determines the interest rate you will have to pay on your mortgage. Get your credit reports and check for accounts that are not yours and debts that you don’t owe. Sort out payments that you have already made but still shows outstanding on your report. Work out on improving anything negative on your credit.

Work on Improving Your Credit Scores

In order to get low mortgage rates, start getting your personal finances sorted. Pay off your bills well on time and start repaying any outstanding loans. Use other ways to improve credit scores when possible. Also, arrange to get a credit-monitoring service started up in order to avoid wrong credit scores.

Time to Start Saving Up

Now, you may start saving up your money in any way possible. Get frugal, save money on anything you can. Stop getting take-outs, give up your subscriptions and avoid shopping. Think about being a house owner! Try to get 10% of your down payment covered to get better financing options. You can always use some extra money for setting up a new house.

Start Taking the Deadline on Your Bill Seriously

If you keep missing deadlines on your bills, that is what makes a dent in your credit scores. Start remembering to pay your bills on time and if you keep forgetting, look for automated billing options, online or otherwise.

Six Months to Go

Take a Crash Course on Mortgages

You should understand properly how mortgages work. It is better to make an effort now than to be stuck with a life-long mortgage due to wrong advice. Find out about different types of mortgage options available and learn the risks involved in them. Try sticking with the traditional mortgage.

Make a Budget; Determine Costs That Are Associated With Moving

If you are buying a house, the down payment and mortgage is not the only thing you will be paying. There will be cost of decorating the house, taxes and insurance to pay and association fees to be sorted. You will also face higher utility bills, and you will have to take up repair and maintenance costs as well. So now is the time to study your personal finances and make a budget.

Time to Save More Accordingly

Now that you actually know the amount of money you will need, start saving money accordingly. The more you save, the better options you will have at the time of closing the deal for your house.

Three Months Remaining

Work On Making Your Credit Better

Minimize your credit utilization so that there are lower risks for your credit score. Pay your balances before deadlines. Wait until buying the house to open or close any credit accounts.

Two Months Out

Get an Idea of Mortgage Rates

Get your credit report once again and keeping in view your current credit scores, ask a few lenders to provide you with mortgage rates. Don’t apply for the mortgage yet, just get an idea. The inquiry by lender will lead to a dent in your credit score but inquiries within a few days are considered as one so approach the lenders in a closely concentrated time-period.

Obtain a Pre-Approval Letter

On the basis of your credit score, ask the lender to give you a pre-approval letter of your mortgage. The seller often demands for this letter before negotiating on offers.

Mortgage Broker and Real-Estate Agents

If you find it hard to understand the mortgages, hire an experienced mortgage broker before shopping for mortgages. Also start looking for real estate agents in the neighborhood you want to move to and look for suitable houses.

Time to Get Your Dream House

Shop for a Mortgage

Once you select a house and make an offer, Shop for mortgage. Do your researches properly, ask people for advice and select the lender carefully. Try to move quickly after making the offer, since it takes time to get the mortgage approved.

Appraisal & Inspection

Arrange for an appraisal of the house and inspect the house thoroughly before closing the deal. A walk-through is advisable 24-hours before closing in order to check whether the agreed-upon repairs are made or not. You will also need to prove that you have homeowner insurance to lenders at the time of closing.

Closing

Closing is when the paperwork is signed and the money is paid. Check in advance, the amount of money you need to pay at closing including down payment and your share of legal fees, taxes, insurances and paperwork costs.

Congratulations on having your dream house!

Author Bio:

The above article is composed and edited by Donna B. who writes articles related to debt settlement services from Consolidated Credit. In her free time she writes articles related to finance, loan, dongle, internet technology, mobile applications etc.

How to Earn Big Money with ETFs: Investors’ Guide to ETFs for 2012

How to Earn Big Money with ETFs: Investors’ Guide to ETFs for 2012

ETFs stand for Exchange Traded Funds; essentially, they are nothing but a bundle of stocks that are in a way similar to what’s better known as mutual funds. Just like stocks, these ETFs are traded in open market, and any individual investor can buy ETF shares. In last few years, the popularity and craze of ETFs amongst investors has shot up like nothing else, as investors chose to pump in billions in these stocks. The fact that these stocks attracted over $260 billion in 2008, when the world was facing an economic meltdown, is a testament big enough to prove its popularity. Few also look at them as a very easy, cheap and lucrative way of diversifying their portfolio.

Salient Benefits of ETFs

Taxes:

ETFs more often come with incentives with positive tax compared to their mutual funds counterparts. The capital gains on which an investor is obliged to pay tax on is much lower as the turnover rates of these ETFs are much lesser.

Cost:

Cost on ETFs are far less as compared to any other funds; the reason is ETFs come with a very simple and unsophisticated structure, so any kinds of additional expenses, such as those on marketing are not required, as normally seen in other managed funds.

Dividends:

Both ETFs and mutual funds pay dividends to the respective investors but in a different manner. The dividends of index fund are normally routed back or invested back in those funds. On the other hand, ETFs dividend funds are collected over a period of a quarter and reinvested back all at once.

How to Get Started?

To begin with you can open an account with an investment company or a stockbroker of your choice. You can also trade ETFs with the same broker through whom you have been trading securities, stocks or other mutual funds. Make sure you discuss your plans and past experience of the company or the stockbroker before finalizing on one.

Tracking the Markets

Keep a track of big media journals or websites to study the performance of foreign markets and ETF. Discuss the ETFs that you think have good potential with your broker. An expert agent will most certainly give few more options and explain the risks involved in each of them. Finally, one can place the bet depending upon long term and short term financial targets.

Top 3 ETFs that have Rocked 2012

Dow Jones U.S. Home Construction Index Fund (ITB)

ITB can be a very interesting pick for those investors who are seeking to venture into construction and building ETF arena. The fund has already gained a very impressive 41.9% in 2012 so far, which is excellent considering the 9% loss that it had to deal with, during 2011 fiscal.

IPath DJ-UBS Grains TR Sub-Index ETN (JJG)

This ETN is said to be holding three important futures of commodity, with almost half portfolio to soya, thirty percent to wheat and twenty four percent to corn. The fund boasts of $108.7 million of asset-base and does trading of 126,600 shares/ day.

Market Vectors Egypt Index ETF (EGPT)

EGPT is popular amongst investors as it tracks The Market Vectors Egypt Index that comprises of firms that are present in Egypt or make at least half of revenues in the country. The fund manages $43.3 million of AUM and trades 109,100 shares/ day. The year to date return of the company has been outstanding, delivering 30.1%, compared to 16.1% of loss it suffered in 2011.

Therefore, investing in these three awesome ETFs can almost guarantee fantastic returns to those investors who’ve got high risk appetite and good deal of money to invest into ETFs for next 12 months or so.

 

Author Bio: James Hargreeves is an expert stock trading advisor, and he has been closely watching the ETFs and future trading markets for over 5 years. He loves to contribute investment tips and short term loans tips on popular finance blogs on the Internet.

5 Mistakes everyone makes when applying for a Loan

5 Mistakes everyone makes when applying for a Loan

There are a number of routes people look to take when they find themselves in situations of financial difficulty, some take a more relaxed approach and systematically work out ways in which they can save money. Others are more ruthless, and look to take out multiple credit cards.

One potential option is a personal loan; their flexibility means that they can be used for almost any purpose; some use them to fund a new car, carry out home improvements, consolidate debt or plan a wedding.

For many, this is a great solution to their financial problems and they therefore decide to apply without any real consideration of the long term effects the loan may have on their finances.

I’ve collected 5 of the most common mistakes people make when looking to apply for a personal loan, without further ado, here they are:

1. Apply for the maximum amount available over the longest possible term

The chances are there will be a reason you are taking out of the loan (this is what lenders will refer to as the loan purpose). It is important that you work out exactly how much you need.

If you are using the loan for debt consolidation purposes then calculate exactly how much outstanding debt you have, likewise if you are using the loan to buy a new car ensure that you know exactly how much the car is going to cost along with any expenses that may be attached such as tax and insurance.

Ensuring that you only borrow what you need will save you money on the monthly repayments and the total amount repayable.

2. Not ensuring you can afford the monthly repayments

So now you’ve worked out how much you require over what term, this should give you an idea of the repayments you will be paying if the loan is approved. At this stage many will simply hit the apply button – don’t fall into this trap!

As part of the application process lenders will carry out an affordability check, this will simply involve deducting all current credit commitments from their total income in order to calculate the applicant’s surplus income- lenders will need evidence that this figure is sufficient to afford the monthly repayments. If an applicant fails the affordability check, the lender will not be able to proceed with the application and will therefore decline it.

Ensuring that you are comfortable that you can afford the repayments will avoid any knockbacks. One way of reducing the monthly repayments is to take the loan out over a longer term; this will however make the total amount repayable slightly more in the long term.

3. Apply through a fee charging broker

There are 3 ways of applying for a loan; via a direct lender, via a comparison websites or via a broker. Brokers basically act as a middle man in the application process, they will take some basic personal and loan related details and then find a suitable lender from their panel and pass your details onto them.

The majority of brokers will make their money from getting paid a commission from the lender on the completion of a loan application- this service will be free. Unfortunately though there are still some brokers that charge a fee for their service, often this fee will be charged up front and can be as much as £80.

The best way to avoid broker fees is by going direct to the lender or using a comparison website, direct lenders are easily identifiable as they will state this on their website; they will also advertise the fact that they do not charge any fees for their service.

4. Ensure that you read the full terms of the loan agreement

This is always something you need to do regardless of what you are applying for; it simply avoids any confusion further down the line. Look out for things like late payment charges, early repayment terms, early settlement figures; these will all differ depending on the lender you are applying with.

For example; some lenders will allow you to pay the full balance of the loan off prior to the scheduled finish date, others will charge fee (known as an early settlement fee).

5. Research all possible options

There are a number of loan options available now; the one that suits you best will be based on your requirements of the loan; such as the loan amount you require. The repayment terms will also play a large part in your decision, for example; if you’re looking for a very small amount and would like to repay it in full then a payday loan may be the best option for you, if you’d like to pay it monthly then there are a number of options available.

Your credit history will also have a bearing on the types of loan available to you. If you have an immaculate credit history then you may qualify for a loan via your high street bank, however if you have bad credit then this will limit the type of loans available to you, you may still be eligible for a guarantor loan, logbook loan or payday loan.

Avoiding these common mistakes will not avoid any confusion but could save you a significant amount of money in the long term.

Author Bio: This article is written by Jason Scott a UK based finance expert who writes for a number of top finance related articles. His specialist subjects include the subprime loan market and guarantor loans for bad credit.

Accident Cover For Low Speed Collision : When Damage Happens the Most

Accident Cover For Low Speed Collision : When Damage Happens the Most

If you thought you needed the accident cover only to claim in the event of a major accident, think again? A recent testing shows that the crashing of a small car even at a walking speed can cost the owner over two thirds of the vehicle’s original value in repairs.

The reputed insurance company NRMA insurance conducted a crash test in West Sydney in Newington. The demonstration involved crashing different models of cars at low speed, speed as low as walking pace. And even at that pace the damage done to the cars was significant. The repair cost of a Toyota Yaris involved in this demonstration cost $13,440 to repair the bumpers both rear and front (the vehicle was being driven at a speed of ten kilometers per hour). The Holden Barina cost $2,574 in repairs.

Take the case of the Toyota Yaris, the amount spent in repairs was more than seventy per cent the value of the car. On the same lines is the repairing cost of another small car, the very popular Honda Jazz. The repair cost came to about 69.5 per cent of the vehicle’s value at $13,754. The Holden Barina 5-door with hatchback has an improved bumper design and cost for repairing would come to about 14.3 per cent of the vehicle’s value. The insurance company conducted this research to remind consumers how the choice of car would affect the premium payment on accident cover. Insurance being an extremely competitive market, insurance companies have to provide maximum benefits to their policy holders especially on products like accident cover and it would not be in their interest to charge more premium. Such a research helps the insurance companies to determine if it is economical to get the car repaired after collision depending on the amount of damage the car may have suffered as against purchasing a new car.

NRMA tested 9 small cars that were top selling models in Australia. The highest number of common crashes on the country’s roads occurred due to low speed accidents. The testing was done to review the performance of the bumpers when the vehicle was involved in any collision.

The research revealed that poorly designed bumpers were the cause of greater damage caused to both the vehicles involved in the accident. For example the Barina has an effective bumper design and thus suffered less damage to the structure, most of the damage was caused only to the bumper components.

Most new car manufacturers especially those sourcing from China faced numerous challenges when it came to improving designs as well as repair serviceability. The test by the insurance company brought to fore the problem that no thought was being given as to how the car would be repaired or how the supply of parts would be arranged.

It seems important enough to have bumpers that are effective even on the small cars so that the expensive parts such as radiator and headlights can be adequately protected. Hopefully this test will encourage both consumers and manufacturers to look into this issue as low speed crashes are quite common in Australia and although it may not cause harm to life, it may surely cause a severe dent in the finances especially for those without the accident cover.

10 Things to consider when purchasing a Property Insurance

10 Things to consider when purchasing a Property Insurance

Purchasing a piece of property has been and still remains one of the most important investments for many people. A person will consider a lot of factors before venturing into the business of owning a property. If is for this reason that a person must also consider taking the best insurance policy that they can identify. Here are some factors that a person should consider when purchasing a property insurance cover:

Maybe the first thing a person should consider is the timing of taking up such a cover. Insurance covers after a tragedy will be more expensive. After instances of floods, theft or even terrorist acts the policy prices will be pushed up.

A person should always consider the credit rating that they have. The lower the credit rating, the higher the price of the policy. This is because the insurance company will see such a person as a risky venture for them. They might default.

A person should check how they make claims and how often. A person who claims very often will definitely be given a wide berth by the insurers. No company will want a ‘claimer’ in their books.

A person should open their eyes completely especially when they are offered the so called ‘cheap’ insurance covers. If a person takes a cover blindly because it is cheap, they might discover later that the exclusions are so many that they cover they have is worthless.

Many people have not considered combining their insurance covers. If with two cars and a house, then a person can insure all of them under one cover which will be much cheaper than insuring them individually.

There is the panic or the uneasiness that some people get when they buy something. They switch from one policy to another in record time. This serves as a warning to the insurance company that such a person is as good a liability as a bad debtor.

A home owner or any other property owner should frequently be checking on the review of the insurance policies and property prices every three years. Usually property prices are reviewed after three years. A person should take time to get the best policy.

If there is not much risk of anything happening to the property, a person can opt to have a policy that has more deductibles and lower premiums.

There is the obvious factor of where the property is located. If the property is located in an area where bush fires are an everyday occurrence then the insurance on such property will be expensive. A person should therefore look at the location where they are securing their property.

One must not overlook the fact that the higher the price of a property the higher the premiums. While the price of some property might be higher, a person must not forget that the insurance companies are focusing on the risk, cost of the house and other factors. It should not therefore come as a big surprise seeing that some low cost properties attract more premiums.

Carlita graduated her MBA and has long experience working in a big local insurance company where she was an expert in the types of property Insurance (as she says in Danish bolig forsikring) and thinks it is good to share her knowledge and skills with the others. She is writing technology, finance and business related articles when she has free time. She also has deep interest in traveling and exploring the world. Carlita is also passionate about cars