3 Types of Structured Settlement Payouts - You Decide :A structured settlement is a large amount of money awarded to an individual with an e...
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3 Types of Structured Settlement Payouts - You Decide :A structured settlement is a large amount of money awarded to an individual with an explicit disbursement schedule. The funds are paid as an electronic funds transfer to the recipient bank account over a period of time. This provides a steady income stream over the term of the agreement and usually gives a better rate of return than if the individual received a lump sum of cash and re-invested that money elsewhere.
Structured settlements can be generated from lottery payouts, insurance awards or inherited annuities from a relative's estate. The bottom line is that a structured settlement is a monthly income stream that is intended to help the recipient pay for living and medical expenses if applicable throughout the term of the agreement.
When defining a structured settlement, it is important to provide future flexibility into the agreement so that you will not only receive a steady income stream, but allow for future life situations and challenges such as college tuition for the kids.
Building flexibility into your agreement should be something your financial settlement adviser should be able to help you with. Some of the options you might consider are:
Future Cash Payments - In addition to receiving steady income on a regular basis, you may want to include set amounts added as separate payments in the future. This will provide an individual the ability to receive exact amounts on specific intervals as part of the terms of the settlement.
Graduated payments - As part of your agreement, there may be an option to have the settlement configured to have graduating payments on specific anniversaries of the award. These graduated payments would be pre-determined and agreed to as part of the structured settlement.
A clause that allows the payments to continue in the event the primary recipient passes. This will keep the agreement in place to ensure the total settlement is paid to the estate or other party that may have been part of the agreement.
In conclusion, your structured settlement should be based not only the immediate needs, but also have enough flexibility built into the agreement for the future. Your financial settlement advisor should be able to setup the settlement with you to help ensure the benefits of the agreement are realized over the life of the individual receiving the annuity.
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When we have an accident or injury then it can be a very traumatic experience. Apart from the physical pain there is the mental anguish tha...
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When we have an accident or injury then it can be a very traumatic experience. Apart from the physical pain there is the mental anguish that is felt by not being able to earn a wage.
If the problem has been caused by the negligence of another person then a legally binding financial settlement can make the situation easier to cope with. In the past this would have been in the form of a one time payout, but today a structured settlement payout is often thought to be a preferable option.
Do you understand what a structured settlement is? It is a cash payment that is usually set up through a type of annuity plan. A large settlement would be paid out at regular intervals over a period of time. Such schemes are given a special legislative standing by the US congress, in fact the system has existed for nearly twenty years as a way to ensure those people suffering long term problems can have their medical and living expenses taken care of.
It is important to realise a structured settlement payout may not be suitable for every accident and claim. If your injury will only affect you for a few weeks or months and you can then return to your job then you should opt for a one time payout instead. If you believe that you would be able to go back to work but not be able to do the same amount as hours as in the past then a structured settlement may be worthwhile considering. It may also be worthwhile going down this route if the case involves the wrongful death of a household's breadwinner.
There are other considerations that need to be thought through before choosing to go for a structured settlement payout. Apart from the obvious financial security that comes with receiving a regular income in this way there is also the fact that there is usually no tax liability involved as would be the case with a one off settlement.
Also if you were to receive a lump sum payout, then no matter how big it is there will always be the temptation to spend excessively. With a fixed regular amount being credited it would be far easier to budget and manage your finances. A settlement that is structured does not require supervision from a court and in most cases a deal can be arrived at without too much effort that suits all the concerned parties.
Paul Easton writes on many subject including How to Sell Structured Settlements [http://www.StructuredInsuranceSettlements.com/sell-your-structured-settlement] at his specialist website with FREE Advice: [http://www.StructuredInsuranceSettlements.com/]
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Cash in your injury settlement before it is too late The economy is getting worse every day. Many people are selling their stocks and tra...
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Cash in your injury settlement before it is too late
The economy is getting worse every day. Many people are selling their stocks and trading their investments in for less risky options. What is more secure than cash today? You may be wondering how to get cash for a personal injury settlement. Don't wait for 20 years to pass for your personal injury settlement to finally pay off. You are losing money every day on future payments. Your personal injury settlement is static and locked in to a rate of return that gets lower every day. The future is too risky. If you need cash, get it now. Your future payments lined up are easily turned into lump sums of cash. Don't wait for cash any longer it is yours. The court awarded it to you for your injury lawsuit. Just think about it, if you have large expenses and are head over heals with debt then get out now. Get cash now for your personal injury structured settlement future payments.
Get cash for your personal injury settlement. Disadvantages are many to holding on to the settlement payment plan you have. You are not getting a high rate of return; you are not able to use it as collateral. $500 - $900 a month payments for the rest of your life does not help you as much as cash now of $40,000- $60,000 that you can get. Why continue to ruin your credit or live a financially stressed life. Get control and freedom back to your life by cashing in now. Cash for a personal injury settlement may be used for:
- Bills that are way past due and piled up
- Business funds and large expenses
- Children's education tuition
- Home or condo improvements
- New automobile
- Avoid foreclosure
- Avoid bankruptcy
- Medical expenses, treatments and equipment you need
- Down payment for a new house
- Legal problems & lawyer fees for other issues
A judge that writes a court order will determine the final decision for the use and need of cash. This is required to permit a finance company to purchase the future payments. The steps are easy. First, find a structured settlement purchase company. Make sure the settlement factoring company is reliable and well established. Ask them about legal options, the court process to get the money approval, and the timelines and of course, their cash offer. You can fill out a form on a site linked in the next paragraph to save time.
Fill out a form on this next link and it will be forwarded to a settlement finance professional Use the internet and go to a site like http://www.superpages.com or another business finder site then inside super pages search box use phrase - settlement funding - or similar phrase. Start calling the companies listed; ask them about cash for personal injury settlements.
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settlement cash now about Why Debt Settlement Is Now A Decent Option Federal Credit Card Debt Relief - Why Debt Settlement Is Now A Dece...
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settlement cash now about Why Debt Settlement Is Now A Decent Option
Federal Credit Card Debt Relief - Why Debt Settlement Is Now A Decent Option
The recent economic turmoil is really forcing people towards the use of credit cards. People are bound to use it as they don't have any other option left for meeting up their ends and other basic necessities of life. Credit card is a good option to use when people don't have enough cash to full fill their expenses but paying it back to lenders on time is really a great hassle. It is basically a type of short term loan that is why it is issued it high rate of interest. Apart from charging high mark up rate, the financial lenders also take some hidden charges as well due to which the amount of liabilities get double. People are facing the problem of limited cash because of the recession that is why they are unable to pay back the amount on regular basis. Due to this, they fall in to the category of non payers. When a person faces such situation, then it is advisable for him that he should select the option of debt settlement. In the given article, a person will come to know that why debt settlement is now considered as a decent option for the elimination of debts.
Debt settlement is the right choice for getting rid of the liabilities in no time. Financial experts of negotiation companies know the exact way of handling such situations. They negotiate with the lender and convince them on giving discount in the amount which the debtor has to pay. With the help of their efforts, a person can get half reduction in the amount of debt easily. In order to make this process more transparent and feasible for consumers, the federal trade commission has made some changes in the preexisting laws of settlement. These changes are done for the benefit of consumers. As per the new rules and regulations, the settlement/negotiation company is not legally accountable for asking the services fees in advance. They are bound to take the fees after delivering the services successfully. These new modifications are really encouraging the people for the option of settlement and that is the reason why this method is reaching to it peaks these days.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link. Free Debt Advice [http://www.freedebtsettlementadvice.com]
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Legal Funding - Get Your settlement cash now Luckily there is such a thing as Pre-settlement funding. If you have a legal claim that is in...
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Legal Funding - Get Your settlement cash now
Luckily there is such a thing as Pre-settlement funding. If you have a legal claim that is in the works and you have an attorney representing you, you can obtain money that you need to meet your everyday expenses while you are waiting on your claim. You can be provided with cash on your legal settlement while you wait for final judgment with no fees, no monthly payments and no risk whatsoever. You do not owe us a single penny until, you win your case.
1. You can get a cash advance on a lawsuit. It is not a legal loan. It is an advance for expenses or other financial needs that you need money for now. You get to keep the cash advance whether or not you win your lawsuit. The company that does the cash advance only gets paid if the lawsuit is won. You would get an advance from the legal loan company that purchases part of the proceeds from you case.
2. Corporations, hospitals, and insurance companies can afford to wait forever, but you can not. They can 'even delay the final judgment for years. Consider your options. Can you afford to wait till a judgement is made in your favor? Not many people can. That is where a pre settlement loan comes can happen.
3. The money from your law cash advance can be used for whatever you need: retainers for lawyers, a new car to replace an unsafe one, living expenses, medical bills or even a vacation to Aruba. An advance for lawsuits can be spent however you seem fit.
5.. Pre settlement cash advances from legal loan companies are not complicated. The legal loan company gives you the advance against the value of your lawsuit. The more value there is to your lawsuit, the larger the pre settlement advance will be.
If you wish to learn more about a cash advance, legal funding, lawsuit laws, legal loans, and even a law cash advance, you may be interested in visiting Legal Funding. Their website is http://www.legalfundingnow.com. The web site is easy to navigate. They have a page devoted to FAQs and an online application process.
Jenn Stevens
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If you were a claimant in a lawsuit and were awarded monetary damages, you may have agreed to a structure settlement instead of one large lu...
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If you were a claimant in a lawsuit and were awarded monetary damages, you may have agreed to a structure settlement instead of one large lump sum payment. This payment provides regular installment payments to you over time. This type of financial agreement has many advantages and was beneficial to you at the time that it was set up. However, it is possible that circumstances changed, and you need a large lump sum payment to meet new financial obligations. It is possible to sell your settlement amount and the best way to do that is through a broker.
If you are currently receiving installment payments because you agreed to a settlement, and now you are in need of a greater sum of cash, you can sell your structured settlement and receive structured settlement cash. You can choose to sell the entire structured settlement for one lump sum minus the fee that will be charged to complete the deal by a structured settlement broker, or you can sell only a portion of the structured settlement. In that case, you will continue to receive installment payments for the monetary amount that remains part of the structured settlement. You will receive a lump sum payment for the part of the structured settlement that you sell.
When you get structured settlement cash, it is like getting an advance on the money that is owed to you. The broker charges a fee for his services that can range from 10% to 50% of the money you want advanced. However, even though you are receiving your money at a discounted rate, you now have the use of that money immediately.
Personal injury lawsuits often involve settlements for very large sums of cash. Cases involving medical malpractice and wrongful death can often have settlements that range in amount from six to seven figures. These large settlements can have major tax ramifications so it is beneficial to the claimant to receive these funds in installment payments over time. Structured settlement payments spread over time involve little or no tax at all. In addition, installment payments guarantee a steady flow of income on a regular basis. Many individuals find it easier to manage money in installments rather than receiving a large lump sum all at once.
Circumstances in your life can change, and you may find that the amount of money you receive on a regular basis from the structured settlement does not allow you to meet your obligations on larger bills such as the purchase of a new house or education expenses. If you receive structured settlement cash in a large lump sum, it will make it possible for you to meet these new financial obligations. In addition, you may notice that the installment payment amount is not keeping up with inflation, and you may decide that receiving cash now is better than receiving installment payments in the future.
If you decide that selling your settlement money is in your best interest, you need to find a reputable broker who can help you through the process. A broker acts as a consultant, provides an assessment, prepares calculations and plays an active role during negotiations to sell the structured settlement. The information that a good broker provides during negotiations helps both sides reach an equitable agreement.
To help the claimant, the broker prepares a financial analysis and then determines the present value cost of the settlement. He or She provides expert support and information in calculations involving Medicaid and SSI as well as issues involving income tax. Because a great deal of financial expertise is required, apart from the brokers help your accountant or bank would be a good source for a recommendation.
As you work with a structured settlement broker, you should find out what the total cost of selling the settlement payment will be and how long it will take to sell the same. It is important for you to have multiple deals to choose from so make sure your broker can provide details about multiple opportunities. This will help insure that you are getting the best deal possible. Throughout this selling process, it is vitally important that the channels of communication between you and your broker be open. You should be able to communicate with your broker easily and often, if necessary.
You should retain the services of a qualified broker who is registered with the United States Department of Justice. These settlements are set up by the courts and each state has its own laws. In addition, there are federal guidelines that must be followed under the tax code. You can receive structured settlement cash when you sell your structured settlement, but the process requires court approval. Complicated transactions like selling a structured settlement should always be reviewed by an attorney who will represent your best interests.
It is important to research the broker's qualifications and experience. The broker you choose should be registered with the United States Department of Justice and be affiliated with at least one insurance company. The Civil Division of the United States Department of Justice actually publishes a "List of Annuity Brokers Who Meet Minimum Qualifications for Providing Annuity Brokerage Services in Connection with these settlements. The list for any specified year is in effect until it is replaced by another update. This list of brokers is alphabetical by their last name and provides the city and state where they are located.
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Why Is an Extra Home Loan Payments Calculator Important for You Buying a house is a huge step. This is a major investment and you have to ...
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Why Is an Extra Home Loan Payments Calculator Important for You
Buying a house is a huge step. This is a major investment and you have to make sure that you do everything right. When it comes to purchasing a house, there are so many things you need to know and use. These things should make it easier for you to afford the repayments and keep you from experiencing problems with your loan.
One of the things you need to do is use an extra home loan payments calculator.
What is this and what use does this have?
An extra repayments calculator is something that will allow you to calculate how much you can save by making extra repayments each month for your loan. This calculator is crucial in planning out your finances. You can use this to identify how much you need to save up so you can reduce the amount of your loan.
When you apply for a home loan, you will be given a certain time to repay it. It could be several years. You will be asked to make a specific amount of mortgage payments each month, which include the interest rates and principal amount. Each time you make a payment, the principal amount will be reduced, which means you'll have less to pay off.
But if you want to repay the loan quicker than planned, you can make extra repayments each month. Extra repayments are great because they don't just reduce the loan term. These will also help you save a lot of money on interest rates. This is why there are lots of homeowners who are seriously looking into making extra repayments just so they finish the repayment as quickly as possible.
Why do you need to use an extra repayment calculator? The answer is very easy. This will help you better manage your finances. This will help you determine how much you can spare to pay on top of the agreed amount. This will also help you see how much money you're going to save. By making extra repayments, you reduce the principal amount of the loan. And when the principal amount is lessened, the interest rates are reduced as well. So if you pay more each month, you are not just shortening the term of the loan. You are also reducing the interest. Do it each month and you're sure to save a lot of money.
This is very useful because a lot of people have been discovered to not do any research prior to obtaining a loan. This means they do not spend enough time assessing their financial ability to repay the loan. They do not see if they will be able to bear all the costs of repaying a loan. Acting in haste, especially when obtaining a loan, is not wise because you are putting yourself in a potentially dangerous financial situation.
What dangerous financial situation is this? When you borrow money and you have not studied its impact on your finances, you could end up experience lots of problems, which include losing your home.
An extra home loan payments calculator is a very handy tool. This will help you estimate how much you can pay extra so that you save more money.
If you ask individuals nowadays, they are not so keen about home loans and other mortgage credit. It is because the economy was greatly affected by problems from this industry. There are still a number of firms that deliver home loans with integrity and I found one that helped me out a lot. Learn about Extra Home Loan Payments Calculator and it will widen your road to your dream home.
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One of the things that the Obama administration has done to lower student loan debt is create the popular Pay As You Earn (PAYE) repayment p...
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One of the things that the Obama administration has done to lower student loan debt is create the popular Pay As You Earn (PAYE) repayment program. This program allows people with government student loans to cap payments at 10% of their income in addition to forgiving the remaining debt completely after 20 years.
While this program has been extreme popular with low income borrowers, it has done nothing for those with hefty loans that earn a larger income - this may all change very soon. Now the Obama administration is proposing that the same income repayment plan extend to the six million other Americans that have large government student loans but earn a higher wage.
The Proposed Plan
The new PAYE plan would extend to anyone with a government student loan regardless of income. New loan repayment calculations would be based on the amount of money that a person makes, and this would lower monthly debt repayment amounts drastically. On the flip side, the new plan would cost the government $15.3 billion adding to a program that is already very expensive.
In defense of the extended program, the Obama administration has pointed out that the current student loan debt in the US has surpassed $1.3 trillion. Even though extending the program will cost the government more money, this pales in comparison to the billions of Americans that cannot get jobs that pay enough to cover monthly student debt payments. Additionally, many Americans are putting off buying a home or having a family due to massive student loan debts.
Applying for PAYE
The Department of Education is expected to make the new proposal a rule in late October of this year. Until that point, you can still apply for the PAYE program if you make an income that is low in comparison to your debt, and you took out your government loans prior to the year 2007. If this sounds like you, it is possible to sign up for the PAYE program through the government student loan portal. You will have to provide proof of your income in order to do so.
While many Americans have already taken advantage of the PAYE program, many have not. One of the reasons for this is that some Americans with government student loans reside outside of the United States, and proving income tends to be difficult when financial statements do not come from the IRS.
If you do have government student loans from the US, but you live in another country, you can still sign up for the PAYE program. This is somewhat tricky, though, so it's best to hire a lawyer that can help you file the right paperwork.
Various Options
There are currently five different types of repayment plans available to US borrowers. Some of those plans are confusing, so it will pay to do your research prior to applying for any one plan. One way to determine which repayment plan will work best for you is to visit studentloans.gov.
The idea behind offering various repayment options is to prevent students from defaulting on government loans (nearly 20% of students do). Defaulting can mean a bad credit rating that will stay on your record for a very long time, and this, in turn, can prevent obtaining a loan for a car or home or anything else.
If you have defaulted on your student loan, you can still get help. We work with borrowers every day to find a solution to student loan debt. If you're feeling stuck and can't figure out a way to pay your student loan,call us for your free Case Evaluation Today 239-939-0900 or schedule online at: http://www.DellutriLawGroup.com.
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Home Loan Repayment Calculator And Other Mortgage Calculators Available online are several types of mortgage calculators based on use. As ...
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Home Loan Repayment Calculator And Other Mortgage Calculators
Available online are several types of mortgage calculators based on use. As market competition continued to become stiff, brokers and lenders tried to become innovative when it comes to their approach to attracting customers. One innovation they came up with is the mortgage calculator. In an effort to push 'transparency' on the computation process, they created different types of mortgage calculator that would allow customers to estimate the total tag price of the loan product they seek. As time passed on, these calculators grew more complex in the sense that they become more precise with their computations. Now, almost all mortgage websites host mortgage calculators.
Among the most popular mortgage calculators found online are the borrowing power calculator, Lenders Mortgage Insurance (LMI) calculator, variable vs. fixed rate calculator, extra repayment calculator and the basic home loan repayment calculator.
Borrowing Power Calculator
This mortgage calculator helps consumers determine the loan amount they can comfortably borrow (hence the borrowing power). By knowing a certain range of loan amounts that you safely borrow based on how much you earn and spend every month, you can avoid committing the mistake of borrowing outside your means.
Lenders Mortgage Insurance Calculator
Banks and non-bank lenders typically allow their clients to borrow up to 80% of the property's overall amount. However, there are instances when the borrower needs to borrow beyond the allowed limit, sometimes even up to 100% of the property's full purchase price. This prompts the lender to oblige the borrower into paying for the Lenders Mortgage Insurance, which will serve as the lender's protection against probable financial loss in case the borrower fails to pay the mortgage. Using the LMI calculator, you'll be able to figure out the lowest premium should you be able to secure an LMI waiver or discount.
Variable vs. Fixed Rate Mortgage Calculator
During the initial phase of the mortgage selection process, you will probably be stuck between getting a fixed rate loan or a variable rate loan. The variable rate vs. fixed rate calculator allows you to compare your expenses in payments in relation to the official interest rates and the type of mortgage you choose between the two.
Extra Repayment Calculator
The extra repayment calculator is one of the simplest types of calculators out there. This is used to compute the savings you'll be able to make if you decided to come up with additional payments on top of your regular monthly repayment. In short, this calculator gives you a glimpse of just how your extra payments will affect your financial flow.
Basic Repayment Calculator
The basic home loan repayment calculator allows you to simplify your approach to mortgage decision-making because it gives you the ability to estimate your actual mortgage repayments for a particular home loan.
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One of the most important things that you will need to do before taking out finance to purchase a new car is to work out how your repayments...
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One of the most important things that you will need to do before taking out finance to purchase a new car is to work out how your repayments will fit in with your budget. This can be done quickly and easily with a car loan repayment calculator. This online tool allows you to work out how much your repayments will cost you each fortnight or month, so that you will know how much you can afford to borrow.
A car loan repayment calculator can be found online. Most auto loan websites will have a car loan repayment calculator that you will be able to access. By using an online calculator you will be able to play around with different loan amounts and finance options so that you can find the best one that suits your needs and your budget.
Working out auto financing repayments involves utilizing a rather complex formula and, unless you are aware of the formula for working out these repayments, this can often be a complicated process. Traditionally, in order to get these figures, customers were required to approach individual lenders for quotes. This was a time consuming task and one that often involved completing an initial loan request form containing all your details. An online car loan repayment calculator not only saves you a considerable amount of time when getting these figures, but it also allows you to get this information without having to complete a formal application.
There are many variable factors that can effect your scheduled loan repayments. When you use a car loan repayment calculator you can change these variables to work out which finance option is best suited to your budget. For example, the number of years you take your finance over will have an effect on the amount you repay. The longer the loan term the lower your repayments will be. Some people may be able to afford to borrow more for their new car if they take their loan over a 5 or 7 year term as opposed to a 3 year term, and a car loan repayment calculator will enable you to see the difference in your repayment amount for these various loan terms.
The first thing that you will need to consider before using a car loan repayment calculator is how much you can realistically afford to repay. Once you have established this amount you will be able to enter the relevant information into a car loan repayment calculator and adjust the figures accordingly until you get a repayment amount that fits in with your budget.
Most online calculators require similar information to be entered into them in order to get your scheduled repayment figures. To use a car loan repayment calculator you will need to enter in your loan amount, the interest rate applied to your finance, the length of your loan and the frequency of your repayments. At any time you can vary these different amounts in order to see how they will effect the amount that you will be required to repay on your finance so that you can choose the best option for you.
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Best Practice on How To Use A Student Loan Repayment Calculator A student loan repayment calculator is an essential tool in figuring out...
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Best Practice on How To Use A Student Loan Repayment Calculator
A student loan repayment calculator is an essential tool in figuring out exactly how much money you owe on your student loans and how long it will take you to pay them back. Tuition and fees are currently so high at most universities that hardly any students can matriculate and graduate without incurring debt. Whether you are a potential student trying to figure out how much money you should reasonably borrow or a graduate trying to plan your repayment schedule, a student loan repayment calculator can help you with the details.
Interest Rates:
In order for a student loan repayment calculator to compute the amount of your monthly payments or how long it will take you to get out of debt, you will need to know the interest rate on your loans. A general online student loan repayment calculator will use 6.8% as the interest rate. However, most calculators will allow you to change this value if you need to.
The reason that they pick this percentage is that most loans disbursed after July of 2006 have a fixed interest rate of 6.8%. However, if you have a subsidized undergraduate loan, it will have a different interest rate. If the monies were disbursed between July of 2008 and June of 2009, the rate will be 6.0%. If they were disbursed between July of 2009 and June of 2010, the rate will be slightly lower at only 5.6%. If the money was disbursed as recently as July of 2010 to June of 2011, the rate will only be 4.5%.
Other loans like certain PLUS loans or older loans may have different interest rates. If you are currently looking at going back to school, make sure that you use the right interest rate in the student loan repayment calculator so you can ascertain how long it will take you to pay back the loans. If you are trying to pay back loans and you have several loans at different interest rates, make sure to use the calculator a few times for each individual loan,
The benefits of repaying early or extending the life of the loan:
Another variable that you will need to enter in your student loan repayment calculator is the length of the loan. Most loans have a ten year period which will be entered into the student loan repayment calculator as 120 months. However, sometimes it is possible to extend the loan up to a twenty five year period. Extending the life of the loan will mean that you pay lower monthly payments. However, it will also mean that over the course of the loan, that you will pay more interest.
For instance, if you borrowed $40,000 at 6.8% interest and you paid it back on a 120 month term, your monthly payments would be $460.32 a month. Over the life of the loan, you would pay a total of $15,238.55 in interest. If you extended the life of the loan to 20 years or 240 months, it would lower your monthly payments to only $305.33. However, you would pay almost twice as much interest as your interest would be an astounding $33,280.59. As you can see, extending the life of the loan will save you money in the short term, but it will ultimately cost you more.
Some people do not need to lower their monthly payments. Instead, they are interested in paying extra money off their loans each month. To find out how extra payments can benefit you, you can also use a student loan repayment calculator. With a small amount of extra money each month, you can shorten the life of the loan and lower the amount of total interest paid substantially. For instance, if you have a loan for $10,000 at 9% interest on a ten year term, your monthly payments will be $126.68. If you paid only an additional $25 each month to the lender, you would be finished paying off the loan in only 7.7 years. That means you save 2.3 years. Without the extra $25 per month, you would have paid $5201.09 in interest. With the extra monthly payment, you would have only paid $3879.64 in interest. As you add more money to your monthly payment, you will save more in interest and shorten your loan by years. If you give an extra $100.00 to your lender every month, you will be done with your $10,000 loan in less that five years and you will save $3,012.17 in interest costs.
Also you can see paying extra money each month will help you. However, that is not always an option for some people. If you feel like you want more time to repay your loan, you should speak to your lender. Most loans are on a standard repayment plan which is the above mentioned ten year term. However, some loans do qualify for the extended repayment plan. To qualify for extended repayment, your loans should be more than $30,000 and they should be Direct Loan Debt. This plan offers you two payment options: fixed and graduated. Fixed payments are just like installment loans. You will pay the same amount every month for the length of the loan's term. Graduated loans let the monthly payment grow every two years. Therefore, your payments start small but they get bigger. Speak to your lender about your options.
How much money do you need to make:
Another great feature of an online student loan repayment calculator is that it can advise you about how much income you will need to have in order to repay your loans. Most of them calculate this number based on the belief that your monthly payment should not be more than 8 to 10% of your income.
As you can see, a student loan repayment calculator is an invaluable tool in ascertaining how much money to borrow and how quickly you can pay it back.
Also learn how to choose the best student loans without cosigner and always borrow responsibly.
Article Source: http://EzineArticles.com/expert/Joan_Merkley/926228
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The Best Options for Your Caravan Finance Options for Your Caravan Finance Buying a caravan can be a great way to organise more flexible...
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The Best Options for Your Caravan Finance
Options for Your Caravan Finance
Buying a caravan can be a great way to organise more flexible holidays and weekend breaks. It can provide you with a home away from home, with all of your creature comforts. You can travel anywhere you would like to visit, spend one night or several without needing to worry about expensive hotel accommodation or costly restaurant bills. However, unless you are in a very fortunate financial position, it is likely that you will need to consider finance to fund the purchase.
Dealership Caravan Finance:
The most obvious place to look for your caravan finance is the dealership where you are purchasing the caravan. While this can be a great place to secure automotive finance, consumers should not assume that they are automatically obtaining the best auto finance rates. The dealership may have some attractive packages, but be sure to read the small print to check for any hidden fees or charges, and compare the rates with other providers before you commit. In many cases, the sticker price for the finance options are often based on longer term loans to make the monthly charges more attractive. Although this means that your monthly expenses will be less, you will be paying far more over the term of the loan. Always check the total finance cost in addition to the APR and monthly payment estimates.
Bank Loans:
Another source of financing is a loan from your high street bank. Most banks and financial institutions advertise some great loan deals for any purpose. However, you should be aware that since the global finance crisis, many banks are reluctant to lend to those without an excellent credit record. If you have less than perfect credit, you may not qualify for the advertised rate and will be offered a less competitive deal. Again, be sure to compare any quotes to check if it is the best possible deal.
Specialist Caravan Finance Broker:
A broker can be the best way to get a great deal on your caravan finance. Reputable brokers have access to a range of lenders who specialise in certain types of finance. The broker can search for the most competitive deals, allowing you to compare caravan finance rates without needing to fill out multiple forms and applications. A broker can assist you even if you have less than perfect credit as they will have access to a number of companies with more relaxed lending criteria. The broker can assist you with the paperwork, making the loan application process far less stressful and frustrating.
Finding caravan finance need not be stressful, but it can be a good idea to research your options before you commit to a purchase. This will allow you time to compare finance rates and find a great deal. You can then shop with confidence that you can comfortably afford your new purchase.
If you are considering caravan finance, Perth consumers should contact us. We specialise in all types of automotive finance and would be happy to discuss your requirements and assist you in obtaining the deal best suited to your particular circumstances.
Article Source: http://EzineArticles.com/expert/Camy_Ethan/2092070
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Purchase Order Financing Tips and Secrets for Canadian Firms Seeking Trade Finance Your worst business nightmare just occurred. You got t...
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Purchase Order Financing Tips and Secrets for Canadian Firms Seeking Trade Finance
Your worst business nightmare just occurred. You got the order/contract! Now what?!
Purchase order financing is a great tool for firms that have unusual purchase order and contract sales financing needs but are potentially unable to access traditional financing via banks or their own capital resources within their firm. How does trade finance P O financing work, does your firm qualify, what are the costs, and how does it work? Great questions, now let's explore some answers!
Typically Canadian firms looking for this type of financing are distributors, manufacturers, or perhaps wholesalers. A variety of industries in Canada have access to this type of financing, but those certainly tend to be the typical firms needing assistance.
Your need for purchase order financing arises out of what we call the classic working capital gap. What do we mean by that? It's a case of your suppliers requiring payment either up front or within 30 days, with your firm unable to generate those funds for payment and therefore unable to fill large purchase order and contracts in your favor. Your supplier is asking your for payment in advance or 30 days, and you wont receive payment for at least 60-90 days, perhaps more depending on your build cycle, etc.
Naturally you don't want to turn down orders or lose competitive market position.
The obvious solution for low cost large amounts of funds are Canadian chartered banks, but our observation is that many firms simply cant satisfy the banks requirements for this type of financing to occur. If your firm is growing, profitable, has a clean balance sheet and strong historical cash flows and history you of course have a solid chance of meeting bank requirements, however that typically is not the case, certainly in the amount of clients we talk to who are looking for alternatives to their growth challenge!
When you access p o financing you can have comfort that your suppliers will be paid, and at the same time you generally have access to all the funds you need. Typical purchase order financing applications take anywhere from 2-4 weeks to complete and involve basic financial due diligence on your firms ability to fulfill the order, who your customer is (they must be credit worthy), and your proper supplier sources must be identified and vetted. It's as simple as that.
So what are the basic pre requisites for a solid P.O. Financing deal? Naturally your company must be in possession of a contract or order that is not cancelable by your client. The P O finance firm arranges to pay your suppliers directly, that alleviates all you cash flow and working capital concerns. The transaction is completed when you ship the goods and your receivables are generated on the sale. It is at this time the purchase order finance firm expects to be paid, and this is traditionally handled by your firms monetizing of its receivable via a bank or factoring facility. Factoring facilities are great partners to the P O financing strategy, because use of them guarantees payment to your P O firm.
Let's cover off a couple tips and secrets around the cost of purchase order financing - It generally is in the 2-3% per month range in Canada, and that means you have to have solid gross profit margins in order to be able to sustain the finance charges. But let's be honest, let's say your firm has been doing 750k of revenue for the last couple years and you finally get the large order from a major customer for 1 Million dollars. Wouldn't you give up 2-3 % of your profit margin in order to make one sale which is the equivalent of your entire year's business? We think you should positively consider that! Clearly the higher cost of this type of financing covers off the complexity and risk that the P O finance firm takes in paying for goods, waiting to get paid, and having the belief that your firm will fulfill the contract order.
It has been our observation with certain clients that your successful completion of a purchase order finance deal typically significantly enhances your relationship with your major suppliers and of course customers, that's a secret benefit that is intangible but invaluable at the same time.
Is P O financing for everyone. Maybe not. Could it be possibly the solution to major working capital needs if your business is growing and can't be financed traditionally - we certainly think so? Speak to a trusted, credible and experienced purchase order finance expert to explore your options.
Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com The company originates business financing for Canadian companies and is a specialist in working capital, cash flow, and asset based financing. In business 6 years the company has completed in excess of 45 Million dollars of financing for Canadian corporations of all size. For information on Canadian business financing and contact details please see: http://www.7parkavenuefinancial.com/purchase_order_financing_trade_finance.html.
Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698
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"What Obama Must Say Tonight," "10 Tax Moves to Make in 2010," and "Ailing Banks Favor Salaries Over Shareholders,...
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"What Obama Must Say Tonight," "10 Tax Moves to Make in 2010," and "Ailing Banks Favor Salaries Over Shareholders," are all examples of the dozens of articles that could be found today at Yahoo! Finance. Yahoo! Finance is a finance website that offers lots of free information and tools all related to finance. There are many websites today that offers resources and tools related to personal finance and investing, so what does Yahoo! Finance have to offer?
*Free- Although there are some services available for a fee, accessing the Yahoo! Finance website is free and so is the use of many tools.
*Personalized Updates- If you choose to set up an account, you can get personalized updates when you log on about stocks or companies that you're interested in.
*Up to Date- This is one of the best things that sets Yahoo! Finance apart. Market indexes and updates are updated frequently and the "news" is fresh.
*At a Glance- You can see Market index averages for the day including the DOW, NASDAQ, S&P 500 and more, as well as graphs showing the trend in these averages for the most recent working day.
What's Up at Yahoo! Finance?
In addition to the Yahoo! Finance home page, you can find helpful pages on:
-Investing
-News and Opinion
-Personal Finance
-My Portfolios (if you choose to organize your financial information here)
- A Tech Ticker
On the Investing Pages at Yahoo! Finance:
Find out about "Today's Markets," including recent earnings statements, recent stock splits and more.
Mutual Funds, Stocks, ETFs, Options, Industries and Currencies are all explored furher. Find research, converters, calculators, articles and more.
You can also learn more about world stock index levels, world news and exchange rates are under "International."
"Research and Education" offers a business term glossary, personal tutorials on finance and investing and more.
Of course Yahoo! Finance also offer "Community," a section where you can chat, ask questions or join groups.
On the Personal Finance Pages at Yahoo! Finance:
Get your personal finances organized at "Banking and Budgeting." Free trials of online bill pay are available. Frequent offers include free for 6 months and $4.95 thereafter.
More under Personal Finance...
*Insurance
*Taxes
*Loans
*Real estate
* Family and Income
*Retirement
On the News and Opinion Pages at Yahoo! Finance:
Look for articles on...
*Industry news
*New technology
*Top picks by experts
Creating a Yahoo! Finance Account:
Creating an account at Yahoo! Finance is easy and free. Once you've created an account, you can personalize your logon so that the information that is important to you will be displayed including stock prices and relevant news pertaining to companies you are interested in.
The Perks of Yahoo! Finance:
Yahoo! Finance visitors and members enjoy that there's so much financial information in one place and that the articles and financial charts on Yahoo! Finance are kept up to date. They also like that so many of the services available are free. Visitors also applaud Yahoo! for having limited ads.
Popular Tools at Yahoo! Finance:
There are rate charts and calculators for Mortgage, Home Equity, Savings, Auto Loans and Credit Cards for fixed loans and ARMs. You can see rates across the country as well view rates in your area.
What's not to love about Yahoo! Finance?
While many users like the non-nonsense format at Yahoo! Finance, others find the finance web sites look to be drab, boring and unexciting with little more than two colors, black and blue, a limited photos.
Still, Yahoo! Finance is recommended as a finance website that has a lot of helpful tools and resources that are well organized, up to date and more than not, free.
Lisa Carey is a contributing author for Identity Theft Secrets: prevention and protection. You can get tips on Identity theft protection, software, and monitoring your credit as well as learn more about the secrets used by identity thieves at the Identity Theft Secrets blog.
Article Source: http://EzineArticles.com/expert/Lisa_Carey/157627
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How to Choose a Car Finance Broker - Some Useful Tips Financing a car is a very important process and today with the availability of numer...
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How to Choose a Car Finance Broker - Some Useful Tips
Financing a car is a very important process and today with the availability of numerous car finance brokers it has become an easy option to get secure car loans. Today these car finance brokers are also playing a vital role in assisting car buyers. In fact, consulting and taking help of car broker can definitely be most appropriate option if you don't have any clue about what to look at according to your budget. A finance broker is the most experienced personnel and clued-up on how to approach the financiers in a way that can persuade them to approve the loan. They usually have good relations and reputation with the lenders as being reliable, and so they know which lenders are likely to be open to a client.
In general, they act as the key source and offer services such as finding a used or brand new car model that the customer wants and within a budget range. At times, these car brokers even assist car buyers in negotiating with a used car seller. However, these days there are many car finance services and making a proper selection is turning out to be a very complicated process. You need to understand that not all car finance services are fair. Therefore, if you are looking to finance a car or choose a car financing service then here are a few important points that you should keep in mind while making a selection:
Standards
You must confirm whether your car finance consultant or broker is a member of FBAA or COSL or both of these industry associations. While Finance Brokers' Association of Australia Ltd. (FBAA) is one of Australia's leading membership bodies for finance broking professionals, the Credit Ombudsman Service Limited (COSL) is an independent organisation that is mainly indulged in handling complaints about finance brokers. You can easily confirm finance consultant's membership by searching through their member list. Adding to this, WA Finance Broker License is yet another additional requirement for finance brokers serving in Western Australia. Nevertheless, if you are looking for finance broker and residing in the state of WA or other states of Australia, it is essential that the broker must hold a WA Finance Broker License. A broker holding WA Finance Broker License entails passing a comprehensive range of checks, educational requirements and operational requirements.
Accreditation
While selecting a car finance broker also ensure you know about their range of lender accreditations. The range of accreditations held by a broker governs the range of options they can offer. You must note that a broker's accreditation can not just change the range of finance options available to you, but it may even affect the quality of those options.
Experienced Staff
You must choose car finance service that recruits and retains professional and knowledgeable staff. The broker must be an experienced professional who can demonstrate and explain about why a particular product is highly recommended or even suites your specific circumstance. If possible make sure you even ask for testimonials from previous clients that in turn may help you in the confirmation of their experience.
Services Offered
As mentioned earlier, today there are many finance services available in the market. Therefore, you must find out more about any extra service that a broker can provide. You should expect your finance consultant to supply detailed information about timeframes, and any fees or extra charges related with your finance. The key point is if a broker is being able to clarify the comparison rate of your recommended vehicle finance and the overall cost of your finance package then it is quality sign of a good finance broker.
These are some important points that can help you in choosing your car finance services easily. Today a lot of responsibility goes along with buying a car and taking financial help through car broker. Just taking care of few essential steps can help you select your car broker and further purchase a nice new or used car.
Get car finance [http://www.automarket.com.au/car_finance_car_loans.asp?flg=1&pop=0] at great interest rates. Automarket.com.au offers car finance and car loans for new or used car Australia wide. Compare our discount car loans through a variety of lenders and use our online car loans calculator. Also find a wide range of new or used cars for sale from car broker [http://www.automarket.com.au/car_brokers.asp] services in Australia.
Article Source: http://EzineArticles.com/expert/Amit_Kothial/186659
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Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a busines...
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Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.
Develop a business plan and loan package that has a well developed strategic plan, which in turn relates to realistic and believable financials. Before you can finance a business, a project, an expansion or an acquisition, you must develop precisely what your finance needs are.
Finance your business from a position of strength. As a business owner you show your confidence in the business by investing up to ten percent of your finance needs from your own coffers. The remaining twenty to thirty percent of your cash needs can come from private investors or venture capital. Remember, sweat equity is expected, but it is not a replacement for cash.
Depending on the valuation of your business and the risk involved, the private equity component will want on average a thirty to forty percent equity stake in your company for three to five years. Giving up this equity position in your company, yet maintaining clear majority ownership, will give you leverage in the remaining sixty percent of your finance needs.
The remaining finance can come in the form of long term debt, short term working capital, equipment finance and inventory finance. By having a strong cash position in your company, a variety of lenders will be available to you. It is advisable to hire an experienced commercial loan broker to do the finance "shopping" for you and present you with a variety of options. It is important at this juncture that you obtain finance that fits your business needs and structures, instead of trying to force your structure into a financial instrument not ideally suited for your operations.
Having a strong cash position in your company, the additional debt financing will not put an undue strain on your cash flow. Sixty percent debt is a healthy. Debt finance can come in the form of unsecured finance, such as short-term debt, line of credit financing and long term debt. Unsecured debt is typically called cash flow finance and requires credit worthiness. Debt finance can also come in the form of secured or asset based finance, which can include accounts receivable, inventory, equipment, real estate, personal assets, letter of credit, and government guaranteed finance. A customized mix of unsecured and secured debt, designed specifically around your company's financial needs, is the advantage of having a strong cash position.
The cash flow statement is an important financial in tracking the effects of certain types of finance. It is critical to have a firm handle on your monthly cash flow, along with the control and planning structure of a financial budget, to successfully plan and monitor your company's finance.
Your finance plan is a result and part of your strategic planning process. You need to be careful in matching your cash needs with your cash goals. Using short term capital for long term growth and vice versa is a no-no. Violating the matching rule can bring about high risk levels in the interest rate, re-finance possibilities and operational independence. Some deviation from this age old rule is permissible. For instance, if you have a long term need for working capital, then a permanent capital need may be warranted. Another good finance strategy is having contingency capital on hand for freeing up your working capital needs and providing maximum flexibility. For example, you can use a line of credit to get into an opportunity that quickly arises and then arrange for cheaper, better suited, long term finance subsequently, planning all of this upfront with a lender.
Unfortunately finance is not typically addressed until a company is in crisis. Plan ahead with an effective business plan and loan package. Equity finance does not stress cash flow as debt can and gives lenders confidence to do business with your company. Good financial structuring reduces the costs of capital and the finance risks. Consider using a business consultant, finance professional or loan broker to help you with your finance plan.
Frank Goley works for ABC Business Consulting as a business success consultant. He has extensive experience in business finance and has over twenty years experience as an expert business planner.
Article Source: http://EzineArticles.com/expert/Frank_Goley/497870
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Structured settlement loans are given against plaintiffs' periodic claim settlements. Court judgments where a structured settlement is a...
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Structured settlement loans are given against plaintiffs' periodic claim settlements. Court judgments where a structured settlement is awarded are called periodic payment judgments. If a claimant has been awarded a financial resolution in which he or she will receive periodic payments instead of a lump sum, a loan may be extended against the value of the settlement.
Such loans are offered by many financial organizations specializing in legal funding. The practice is not held in very high esteem, since the laws concerning structured settlements are designed to protect the recipient from exploitation. However, the fact remains that funds received through a structured settlement represent a form of income, and loans against any sort of regular income are always available.
Availing of such a loan is often the only recourse open to a claimant for obtaining a substantial amount of money. A structured settlement is treated as a special income tax category and cannot be traded in for a lump sum settlement.
The laws surrounding structured settlements are rather specific, and obtaining a loan against them is not as easy as it may sound. Financiers who claim otherwise are usually not reliable. In legal terms, using a structured settlement as collateral for anything at all, including a loan of any kind may void the whole deal. Availing of such a loan is a matter best left to a knowledgeable attorney or law-savvy accountant.
In cases where loans are taken against a structured settlement, the purpose is usually not to obtain hard cash but to buy a house or some other asset. In such cases, the money coming from the settlement may be used to pay regular installments and would not represent a loan in the classic sense of the word.
Settlement Loans [http://www.WetPluto.com/A-Guide-To-Lawsuit-Settlement-Loans.html] provides detailed information on Settlement Loans, Lawsuit Cash Advance Loans, Lawsuit Settlement Loans, Pre-Settlement Loans and more. Settlement Loans is affiliated with Lawsuit Loan Companies [http://www.e-lawsuitloans.com].
Article Source: http://EzineArticles.com/expert/Alison_Cole/44834
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When it comes to lawsuit settlement loans there are some facts that every plaintiff needs to know prior to deciding if they should apply for...
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When it comes to lawsuit settlement loans there are some facts that every plaintiff needs to know prior to deciding if they should apply for a settlement loan and which provider to apply with. Proper research and education into a settlement loan will help the plaintiff make the right choice, as with any type of lending product. This article is designed to allow the plaintiff to learn all the facts regarding settlement loans.
This Loan isn't like a Traditional Loan
Unlike the common term used (settlement loan, lawsuit loan, etc) they are in fact not considered loans at all; as far as legal terms are concerned. They are really called non-recourse loans or non-recourse debts. A non-recourse debt is a secured loan back by collateral. With a settlement loan the collateral is actually your future settlement. You do not make monthly payments on a settlement loan; instead you pay back the loaned amount, plus interest and fees in full if you win your lawsuit and when you receive your settlement. Usually the agreement between the provider and the plaintiff\lawyer has the money directly sent to them; prevent the plaintiff from actually every touching it.
Loan is only Repaid "only" if You Win
One of the major benefits of this type of loan is the agreement on repayment. If the plaintiff doesn't win their lawsuit they are not required to pay back the loan. That's correct; the plaintiff needs a verdict in their favor and receives a settlement. If you don't win your case you aren't required to pay back anything. However, if you do win your lawsuit you must pay back the settlement loan in full, plus all interest and fees. This makes settlement loans a no-risk loan during a pending lawsuit.
Bad Credit Doesn't Affect the Approval Process
If you have bad credit you don't need to worry; your credit history, employment and income amount have no deciding factors in the approval process. The decision to provide the plaintiff with a loan is based on the plaintiff's case. If you have a strong, solid case you'll always be approved for a lawsuit loan. However, frivolous lawsuits almost never get funding, this protects the settlement loan providers since they don't get paid back if the plaintiff loses their case. Don't let bad credit prevent you from applying; it has no bearing on your approval chances.
No Restrictions on Spending
You can spend your funds on whatever you'd like. You can use it to pay medical bills, make mortgage payments, buy a new house, go on vacation or even invest it in the stock market. Once approved you have no limits on what you can spend your money on. Unlike with traditional loans you do not need to give details on what you plan to use the money on; you're free to spend it as you please.
If you'd like to learn more about lawsuit loans you should come and visit the LawsuitLoans101.com website. It contains everything you'll ever need to know about lawsuit loans, including the entire lawsuit loan process from start to finish.
Article Source: http://EzineArticles.com/expert/Stephen_Sandecki/270457
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Many individuals have heard about lawsuit loans and settlement loans, but are unclear as to what the terms actually mean. Fortunately, most ...
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Many individuals have heard about lawsuit loans and settlement loans, but are unclear as to what the terms actually mean. Fortunately, most of us aren't involved in a lawsuit on a frequent-basis. (However, the likelihood of being sued or sustaining injury as a result of someone else's negligence increases daily.)
In the vast majority of cases, we do not have to analyze the situation as to our need for financial assistance by some form of lawsuit funding. Nevertheless, when individuals do find themselves in need of such assistance after sustaining injuries result of someone else's negligence, many questions arise. Although we have encountered a number of questions over the years, the questions asked most frequently are addressed below.
The first question people ask is, "What are lawsuit loans and settlement loans?"
At the outset, we must state that the term "loan" is a misnomer. In fact, they are not loans at all. They are cash-advances that are made in anticipation of a settlement. The form of financing is referred to as "non-recourse." The term "non-recourse" simply means that if you lose your case, you don't have to repay monies advanced. Although there are many attractive features to this form of financing, this is certainly the one with which most individuals are delighted.
The second question many individuals ask is, "What are the interest rates on the money received?"
This is another area of substantial confusion when it comes to lawsuit loans and settlement loans. In fact, because the monies received are not as a result of a loan-arrangement, there are no interest rates affixed thereto. Litigation funding entities will assess a "risk-fee" against the monies advanced. The risk-fee is determined by the inherent risk in the underlying claim. Simply stated, the lower the risk in the underlying case, the lower the risk-fee assessed. Our experience has shown that risk-fees range in the neighborhood of 1% - 5% monthly.
A third question we frequently receive is, "What happens if I lose the lawsuit?"
As previously stated, lawsuit loans and settlement loans are referred to as non-recourse funding. Therefore, if you lose the underlying case once money has been advanced, you would repay nothing. (In fact, if you are able to have your attorney plead the cost for any monies advanced as damages in your case, you are likely to not have to repay monies advanced, irrespective of how your case turns out.)
A fourth question many individuals ask is, "How much will I owe if I am advanced more money than I obtain in the settlement?"
Once again, lawsuit loans and settlement loans are not loan-instruments. They are monies that are advanced in anticipation of a settlement. Therefore, if the underwriters assess the value of your claim as being in excess of that which is awarded, you would still not be required to pay more than what the actual award happens to be.
A fifth question that we frequently receive is, "If I do obtain a lawsuit loan or a settlement loan, how much should I request?"
This is an area in which many people encounter substantial problems. Virtually all funding-entities will advance as little as $100 and as much as $1 million to plaintiffs. However, the question one must ask is, "How much should I request?"
If money is advanced, irrespective of the amount, a lien will be placed on the settlement-proceeds. Therefore, it becomes increasingly difficult to have other funding-entities consider advancing monies to you on that particular claim, unless and until that lien is removed.
To remove a lien, the plaintiff is often required to pay off the underlying monies advanced, to include any risk-fees assessed. Unfortunately, many plaintiffs are not in a position to be able to afford to do so. Therefore, they are stuck with the funding-entity that was unwilling to advance a reasonable amount in the first place.
Plaintiffs are encouraged to give serious consideration to the amount that should be requested in considering lawsuit loans and settlement loans. The maximum plaintiffs will receive on the underlying settlement is approximately 10% of its anticipated value. In many instances that amount will be required to assist the individuals and being able to maintain the litigation, pay for necessaries-of-life, etc.
A sixth question we frequently receive is, "When considering lawsuit loans and settlement loans, is it preferable to utilize a broker?"
This is an excellent question and deserves serious consideration. One of the primary reasons individuals will utilize a broker is to be able to find the funding-entities best-suited to their particular needs. (Seldom ever is a broker-fee assessed.)
Brokers can be tremendously helpful in working as a liaison between you, your attorney, and the funding-entity. Brokers work diligently to procure documents that may be required to submit to underwriters to obtain a favorable review of your claim. Additionally, you'll be able to work directly with the broker in an effort to obtain clarification on issues that are oftentimes obscured when attempting to deal directly with funding-entities.
In virtually all instances, individuals seeking either a lawsuit loan or a settlement loan would be advised to seek out the services of a competent and knowledgeable litigation funding broker. Experienced brokers will know the circumstances in which you're most likely to obtain due-consideration for your request.
The seventh most frequently asked question is, "How Do People Obtain Lawsuit Loans and settlement loans?"
It all begins by submitting an application. There is no fee for submitting your application. However, you are discouraged from submitting multiple applications. Although many individuals feel as though this is a wise thing to do, in the vast majority of cases, funding-entities will give little consideration to applicants who have submitted their requests via multiple-entities.
Want to find out more about lawsuit loans? Then visit our site on how to choose the best settlement loans for your needs.
Article Source: http://EzineArticles.com/expert/Dr._Tom_Rhudy/199427
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Lawsuit settlement loans are an obscure financial option for most people. Because most of us aren't involved in lawsuits on a regular b...
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Lawsuit settlement loans are an obscure financial option for most people. Because most of us aren't involved in lawsuits on a regular basis, we don't often have to decide if getting a lawsuit settlement loan is the right thing to do or not. The truth is, in my years of helping people make this decision, all of their confusion boils down to a few unanswered questions:
What is a lawsuit settlement loan?
A lawsuit settlement loan is a "non-recourse loan". "Non-recourse" simply means that the lender doesn't have the right to collect the money if the case doesn't settle-for example, if you got a $10,000 lawsuit settlement loan and you lost your case, you wouldn't owe anything. This is the way a lawsuit settlement loan has to work under Federal law.
How high are the interest rates on lawsuit settlement loans?
The interest rates on these loans range anywhere between 1% to 5% monthly. A fair interest rate for a personal injury lawsuit settlement would be around 2.5% to 3.5%. A fair interest rate for a structured settlement case would be around 1% to 1.5%. For riskier cases, expect interest rates bordering on 5%. Be careful of deceptive math with most companies! Some companies may try to scam you by making you believe a "grid-structure repayment plan" is the way to go. With these repayment plans, you may end up repaying 60% interest if your case settles any time within six months. So, if your lawsuit settlement arrived after two months you would have ended up paying 30% of the loan per month.
What if I lose my case?
Because lawsuit settlement loans are non-recourse loans disbursed based on your pending settlement, if yours never comes because you lost your case, then you wouldn't owe anything.
What if the settlement is less than the loan amount?
If the settlement is less than the loan amount, you still do not owe more than the settlement. Basically, you will not leave the deal with personal debt from the non-recourse loan.
How do I calculate if a lawsuit settlement loan is the right thing to do?
Let's look at an example. For simplicity, let's say you are expecting $100,000 but it was going to take one year for you to get that settlement. Let's say you have been out of work for a couple months, but you would be able to get back to work soon. The defendant's insurance company knows you are probably desperate (as most are) and offers you a bogus $10,000. Out of desperation, you are very close to taking their offer. But then you discover a litigation finance company could give you a lawsuit settlement loan of $10,000 at 3% interest per month. This satisfies current financial demands by paying back-rent, catching up on car payments and providing food for your family until you can get back to work. By the end of the year, you get the $100,000 settlement. Of course, about $33,000 goes to the lawyer in attorney fees, and $13,448.89 goes to the litigation finance company (the $10,000 loan plus $3,448.89-3% interest compounded per month for twelve months). By taking the loan instead of the bogus settlement, you would have been able to wait a year for the full amount that was due to you and get $63,551.11 after attorney fees and interest (compare that to the $10,000 bogus offer you could have ended up accepting because you didn't know your options!).
Should I go through a broker for my lawsuit settlement loan?
By using a lawsuit settlement loan broker, you can get your loan from the right underwriter for your specific case and for your needs and wants. For example, if you have a worker's comp case in Connecticut, some underwriters may reject you, some may charge you unfair interest rates, but only a few would be happy to take your business and charge you a fair interest rate. The same goes for a personal injury lawsuit in Florida-different companies will make different offers. Some will give you an approval within a couple hours, but by accepting that quick approval you may end up getting a lot less than you could (and probably at a higher interest rate). Other underwriters will take a few days to fully review your case and give you a loan for a lot more (and at a lower rate). After years of experience as lawsuit financing brokers, we know which underwriters will give you the best deal for your specific case and for your needs and wants.
Jason Argall is the Director of Internet Marketing for My Legal Advance, a litigation finance company offering cash advances on plaintiffs' lawsuits and structured settlements. He can be reached at info@mylegaladvance.com for any questions pertaining to litigation finance, lawsuit loans, structured settlements and personal injury pre-settlement advances.
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Best Settlement Loan 10 Tips & Advice 1.What is a settlement loan? A settlement loan is money that you borrow to consolidate or set...
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Best Settlement Loan 10 Tips & Advice
1.What is a settlement loan?
A settlement loan is money that you borrow to consolidate or settle your debts. With this type of loan you can consolidate all your monthly payments into one that is often lower than the total of all the payments. The benefit is that you have more money left at the end of the month when you pay all your bills.
2.Can I get a settlement loan with bad credit?
Lenders are very willing to approve a settlement loan for you to help you improve your credit rating. They see this as a favourable move because it shows that you are trying to correct any mistakes that you made in the past by mot making your monthly payments.
3.How can I get a settlement loan?
All banks and lenders will approve settlement loans. You can also apply online and with the loan calculators provided on many of the sites, it is very easy to do the Math and see how much you can save by taking out one of these loans to help clear up your debts.
4.What is the APR for settlement loans?
The APR (Annual Percentage Rate) that you pay on your settlement loan depends on several factors. The first is the current market conditions for the interest rate at the time. The interest rate you have to pay also depends on whether you apply for a secured loan, an unsecured loan or a mortgage. It will also depend on whether or not you have good credit.
5.How can a settlement loan help my bad credit?
Getting a settlement loan will help you clear up any debts that are hanging over your head. You can actually have the lender pay these off in full for you so you don't have to bother with that. These them show up as positive items on your credit report and as long as you keep making the monthly payments on this loan, your credit score will start to rise.
6.How can a settlement loan help me avoid bankruptcy?
A settlement loan is basically taking out a loan to help you get out of debt faster. Although this may not sound right, it is absolutely correct. It helps you consolidate your debts into one payment that is easier for you to manage each month and you no longer have to decide which payment to miss each month.
7.Can I get a settlement loan with no collateral?
The most common settlement loan with no collateral is a credit card settlement loan. The way to do this is to transfer all your debts to one credit card and cut up the others so that you won't use them. This way you don't have to apply for a loan and you can take charge of your own finances.
8.Are there any fees associated with a settlement loan?
Most lenders will not tell you about the fees that you have to pay when you take out a settlement loan. These fees are for the paperwork involved, for contacting your creditors and for getting a copy of your credit report. In addition, if you find that you can pay the loan off before it is due, you may have to pay a penalty.
9.How does the lender pay my creditors when I get a settlement loan?
You do have to be careful when you ask the lender to pay off your creditors. Some lenders actually negotiate with your creditors to take a lower amount than you actually owe so that they actually make money over and above what you are paying in interest charges on the loan.
10. Can I get a settlement loan for student loans?
Yes, if you have several student loans, you can combine them all into one with a settlement loan. However, you should wait until they become due because with student loans, you don't have to start paying them back until six months after you graduate. Combining them before that could mean you are making payments you don't have to.
You must always seek professional advice when getting any type of loan to find your local finance advisor or loan broker visit: http://www.loan-guides.co.uk
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