Personal Finance | devo digest

Seat Belts and the effects on Car Insurance

On 09.17.11, In Car Insurance, By Stevie Wonder

There was a time when kids rode on the floor hump in the back seat of the car. Piled into the back of the station wagon or sitting in the open pickup truck, hanging onto the sides for dear life was the norm. The world was not in such a hurry back when driving was a leisure activity. Today, high-speed interstates transport thousand of drivers’ texting, eating and performing other distracting behaviors. Wearing a seatbelt guarantees driver protection, a lifesaver for young and old alike.

Even minor fender benders can cause prolonged head and neck injuries as well as spinal misalignments and muscle strain. Most states, however, require all drivers and passengers to wear seatbelts to avoid such liabilities. With the national average of seatbelt wearers at 83%, according to Insurance @ Suite 101, car insurance rates have little effect on adherence to state law on seatbelt use. However, car insurance companies pay attention to seatbelt infractions because it shows apathy for the law, as well as a huge liability to an insurer, when an unbelted driver or passenger is injured. Every state in the U.S., except New Hampshire requires drivers to wear a seatbelt.

Tickets for seatbelt violations are moving violations in many states. Moving violations place points on driving records similar to speeding and traffic violations. Car insurance companies offer good faith policies to consumers with the understanding that drivers obey speed limits, state laws and drive safely. Many car insurers offer incentives for safe driving records, lower premiums for older drivers and policy reductions for consistent driver safety. However, based on the national statistic, 17% of drivers disregard the law driving without seatbelts.

Car insurance companies compiled injury data on non-seatbelt related accidents. Serious personal injury occurs to drivers and passengers without seatbelts. Reckless, unbelted, drivers pay a stiff penalty in moving violations and car insurance premiums. Insurance Agents.com notes drivers can save up to $400 dollars in premium costs just for buckling up. Many drivers do not realize that passengers too, must buckle up. A driver can receive a moving violation infraction when grandmother does not wear her seatbelt in the back seat on the drive to church.

Sash and lap combination belts save lives. Avoid tucking the sash under the arm. Instead, raise or lower the upper attachment on the auto wall to increase belt comfort. When worn correctly, seatbelts, airbags and automobile construction can reduce the crumple zone, area in which impact during an accident can injure drivers and passengers.

Trading Stocks Using Support and Resistance Lines

On 08.12.11, In Trading, By Stevie Wonder

If I could only learn one aspect of chart reading it would be knowing how to read support and resistance lines. Support is when a stock price gets buyers to start buying and/or sellers to quit selling. Resistance is just the opposite – where sellers start selling and buyers quit buying. So how do I identify where these price levels actually are so I know which stocks to buy now and the appropriate time to sell them? Well, there are actually a number of fairly reliable methods to find accurate support and resistance lines:

History

The first place I go to find support and resistance lines is by simply looking at the charts. Are there any prices where the stock price kept “bouncing” off of? If it happens multiple times in a relatively short period relative to your chart time frame then you have a support line. This is where the double bottom or double top price formations come from. If a stock can’t break through the resistance it’s going to change directions and try to break support in the other direction.

Price Trend

You’ve likely noticed that for any good stocks to watch, the prices never move in a straight line regardless if they are going up, down, or sideways. If a stock is moving up it first moves up, then comes back down some, and then moves up higher. This is called creating a channel. If you draw a line along the lows of the stock prices and the highs of the stock price in this trend channel you get more support and resistance lines. As long as the price doesn’t break out of the channel it’s likely going to keep heading in the same direction.

Moving Averages

I am probably too big a fan of moving averages. I enjoy fine tuning the number based on different theories or stock to stock to try to see what each given security seems to react to. A moving average is simply an average price over a given period of time. The most commonly used are the 50 day and 200 day moving averages for longer term trading. When a price hits a longer term moving average it tends to stall regardless if it’s moving up or down.

Fibonacci Numbers

The Fibonacci series, the last two numbers in a sequence added together, is found in nature, science, and price cycles. Essentially it goes 1,2,3,5,8,13,21, and so on. When you divide these numbers you get the same percentages and they are found in stock cycles. The price will often retract 38.2%, 50%, or 61.8% If you draw these lines of resistance off a price reversal you can add some clarity with the other methods.

Should I File For Bankruptcy or Not?

On 08.04.11, In Personal Finance, By Stevie Wonder

Filing for bankruptcy is a very personal decision that could have a big impact on you and your family. A Seattle bankruptcy lawyer can help asses your situation and determine whether bankruptcy is the right course of action for you. Debtors looking to file personal bankruptcy may have two options available to them. Chapter 7 bankruptcy or Chapter 13 bankruptcy. A chapter 7 bankruptcy allows you to discharge all of your unsecured debts such as credit cards and medical bills, while a chapter 13 bankruptcy allows debtors to make up their house or vehicle payments through a payment plan. Some debtors will only qualify for a chapter 13 bankruptcy due to their household and family size. Below are some good reasons why may consider filing bankruptcy.

If you being sued by debt collectors and credit card companies? If you are being sued, and you own a home, we strongly urge you to speak with a Seattle bankruptcy attorney about filing for bankruptcy. Filing bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages. Debt collectors are forbidden under Federal Law from speaking to debtors once a bankruptcy case has been filed.

Is your home being foreclosed or is your car about to be repossessed? If it is, often times filing bankruptcy may prevent the foreclosure action or repossession from proceeding and allow you to make up your mortgage arrears or automobile balance and make payments on those debts over time through a chapter 13 bankruptcy payment plan created by your bankruptcy attorney with you providing your bankruptcy attorney all of the information required about your debts and assets. If your home has a pending foreclosure or your car is about to be repossessed, Chapter 7 bankruptcy may not be an option. Chapter 13 bankruptcy may save your house and your car, however you must have a steady income to be able to make your monthly payments. Failure to make these payments will result in having your chapter 13 bankruptcy case dismissed. A chapter 7 bankruptcy does not require an income and anybody may file, even if they are unemployed.

Do you have a lot of credit cards and medical bills that you simply cannot pay off? If you are only paying the minimum payment on the credit card bills from month to month and never feeling like you are going to be able to pay off your debts in full?. Do you really want to be in the same financial situation in twenty years? Chapter 7 bankruptcy can provide you with a fresh start that you are entitled to under Federal law and you can become debt free in a matter of four months.

Secrets to Responsible Credit Card Use

On 05.03.11, In Personal Finance, By Stevie Wonder

Credit cards have been a source of bane for many of us who have fallen to the temptations of irresponsible and careless use of this short term loan. Once you have mastered the art of responsible credit card use, you may just find yourself amazed at the many benefits you can get out of them.

As we move forward into an era of plastic money, knowing how to win in the credit card arena is important to ensuring that you won’t end up in the pits of bankruptcy. Even in light of financial difficulties, credit cards should not be seen as a way out, as they are connected to high interest fees and penalty charges. Your devil-may-care attitude towards your credit card can easily dig you in deeper debt than you can ever expect to be in.

With each swipe comes the responsibility to pay them off in due time. As totallymoney explains, the longer you wait to pay them off, the bigger those debts will get. To avoid falling an endless cycle of debt, take note of these simple tips that can change you into a responsible credit user.

Shy Away from Interest

Most credit card users charge purchases without really thinking about the accompanying interest fees which often take the bulk of your monthly payments. The easiest way to side step your interest rate is to pay all your purchases in full each month. Doing this will prevent companies from charging your loan with interest. Better yet, look for credit cards with 0% interest which can help you enjoy your plastic money without the burdensome interest payments for several months.

Take Advantage of Reward Offers

As competition for good credit customers becomes more aggressive, credit providers are integrating a reward and cash back system with their cards to entice more customers. The best way to choose between the two is to look at your particular lifestyle, if you are into shopping and dining out, then opt for rewards packages that can give you discounts on your purchases.

Multiple Credit Cards

If you have maintained a solid record with a credit card provider, chances are high that you will be bombarded with a number of pre-approved offers. They can be gratifying at first, but in the long run become a source of anxiety. As a rule, two credit cards are enough; 1 for your personal use and the other one as back up. If you have a number of options, then choose the cards that give the most privileges and do away with the rest.

Stay Within your Limits

Credit cards comes with their determined credit limits that varies per individual. Responsibly using your plastic means sticking under these limits or incurring additional penalties.

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Options to settle Your Student Loan Debt

On 04.06.11, In Personal Finance, By Stevie Wonder

What could be worse than the current economic downturn? Student loan debt! If you can imagine struggling with a debt that you have no means for paying it that is exactly what many fresh graduates are facing right now. Many students are already cursed with a big financial obligation because of a student loan debt. With nothing but a degree fresh out from school, many are forced to work hard not to make the life that they dreamed of but to pay for the debt. This is a very sad picture indeed.

Financial aid for college education is almost inevitable. The high cost of tuition is not making it easy for students to finish school. If you are not from a wealthy family it is very hard to finish school and pay for tuition. The average student loan debt 3 years ago was at $20,0000. A considerably manageable amount but if you are just starting out your life, this is money that is very hard to secure.

Some students however are lucky to land a good job that has good pay. But this is very rare. What students can usually do is go for student loan debt consolidation. This can help them combine their debts into one account and let them focus to one obligation every month.

Another way to see through this debt problem is to apply for student loan debt forgiveness programs. This is availed by pursuing certain careers for example teaching, military service, law and medicine. In exchange of going for this kind of work their debts will be forgiven. If they pay on time their debts can be cleared in 25 years. Not bad at all. This student loan debt relief is one of the best options to get out from the grip of student loans.

A student loan debt must be paid no matter what one’s present financial circumstance. There is a need for this to be settled as soon as possible. It is a long and hard journey but in time and with assistance you can settle this one way or the other.

Tagged with: student loan debt

The Mechanics Of Annual Percentage Rates

On 03.27.11, In Personal Loans, By Stevie Wonder

Even after the economic meltdown of 2008 and 2009, people with bad credit still can find bad credit mortgages or loans. Finding one, however, will likely take a little bit of extra time and effort. After all, it just takes time sifting through all of the details to figure out whether a loan is fair or not. However, even the easiest, most favourable loan has a lot of smaller, complicated details. One such part is the Annual Percentage Rate or APR. Typically, a lot of potential borrowers tend to only look at the APR number, and it can be slightly misleading.

The APR can be taken as a total cost of a loan, once fees and other influencing factors of a bad credit mortgage is taken into account. This is often referred to as the “real cost.” It is best to think of it this way: when you close on a home, there is the agreed to price, and then final price with all of the closing costs included. The APR is the final rate once all metaphorical “closing costs” are employed. For a fixed rate bad credit mortgage loans, the APR is still fairly easy to comprehend. An APR can become misleading once a bad credit mortgage employs a variable interest rate.

Since variable rates are not locked down, it is hard to fully assess the total and final cost of the loan. Still, lenders are required to calculate and include those factors into the APR. There is a huge problem, however. Since variable rates are not stationary, it is hard to tell where they will go in the future. This is why the fine print of any variable rate loan needs to be thoroughly read. Plus, not all these loans are exactly the same, so terms vary. This is just another reason a quoted APR should never be trusted on a first glance.

No Credit Check Loans For People With a Bad Rating

On 03.22.11, In Personal Finance, By Stevie Wonder

For those who have very low credit score or less than impressive credit history, applying for loans and such other financial undertakings can be a little bit more challenging. However, it is not at all impossible to get approved for a loan as there are ways by which you can circumvent your current credit standing. No credit check loans are among the best options if you are looking to get quick cash without the hassle of going through the credit unions.

In order to fully benefit from this option, here are a number of things you should know and/or look for regarding no credit check loans:

Looking for Reputable Online Lenders is Crucial

While it is easy to find lending companies that would be willing to do business with you, there are only a handful that would have your best interest at heart. In order to find reputable lenders online, make certain that you read up on the companies you come across before deciding to sign on to a loan agreement. Among the things you can do is look for testimonials by previous clients who can attest to the good service that such company extended to them.

Loan Quotes are Important

Just because you are desperate for quick cash does not mean you cannot make smart decisions. Asking for loan quotes from prospective lenders will allow you to gauge as to which deal is best to take. Since these quotes are free, you can get as many as you need before you make the final decision. The most important data to focus on is the rate of interest which will determine the total cost of the loan.

These Loans can Be Your Ticket to a New Life

Those who are raring to get a home of their own can do so by applying for bad credit mortgage. In addition, you can get decent deals that will not suck your budget dry in mortgage payments.

Volunteer Tax Assistance for 2010 Taxes

On 03.18.11, In Personal Finance, By Stevie Wonder

If you need help filing your basic income tax forms, you may be eligible for free volunteer tax assistance from IRS-sponsored community organizations. First, however, there are a few facts that the IRS wants you to know.

10 Facts about Free Assistance for 2010 Taxes

The IRS sponsors two programs: Tax Counseling for the Elderly; and Volunteer Income Tax Assistance.

The Volunteer Income Tax Assistance Program provides free assistance to individuals earning less than $49,000. Free electronic filing is offered at most locations.
The Tax Counseling for the Elderly Program assists taxpayers who are 60 years or older.

Community volunteers are trained by the IRS to help with several specific credits, such as the Child Credit Tax, the Earned Income Tax Credit, and the Credit for the Elderly.

Many preparation sites have volunteers who can assist individuals with limited ability to speak English.

This year,there are more than 12,000 locations that provide free tax preparation assistance in the US. Thanks to efforts by the IRS to expand its affiliations with community and nonprofit organizations, these services provide crucial tax preparation services.

AARP, as part of the TCE program, offers a program known as Tax-Aide – a tax preparation system with over 6,000 locations across the country during the income tax-filing season. Volunteers are instructed and certified by AARP Tax-Aide to assist citizens with incomes in the low to moderate range. Special attention is focused on the over-60 population.

The US Military partners with the Internal Revenue Service to ensure that military personnel and their family receive free assistance with tax filing. Tax program coordinators for the Air Force, Coast Guard, Navy, and Marine Corps work jointly as the Armed Forces Tax Council. Services are geared specifically toward issues facing military enrollees, such as benefits for personnel in combat zones.

Hours of operation and addresses for these volunteer sites can be found through local community organizations or city information hotlines.

For local information about VITA sites, visit online at www.irs.gov or call the IRS toll-free at 1-800-906-9887. To find the closest AARP Tax-Aide site, visit online at www.aarp.org or call 1-888-227-7669 (888-AARPNOW).

Disadvantages of the European Monetary Union

On 03.09.11, In Trading, By Stevie Wonder

The most common counter argument relates to the one-size-fits-all implication of the European Central Bank, with its single interest rate and change rate.

The fact that countries are at different phases in the economic cycle means that some may need high interest rates at the same time that others need lower ones. Other countries, on the other hand, might wish to stimulate the economy to increase growth.

One response to this would be to change the fiscal policy. However, this is limited by the Stability and Growth Pact. If a country is in recession, but interest rates are going up in the European Monetary Union because others are in a boom, it could normally stimulate the economy by lower taxes and high government spending-but no longer have the right to do this except within defined limits. Those in recession when interest rates are high may find that unemployment rises to socially acceptable levels. One result of all this is that the Stability and Growth Pact is coming under immense strain.

On unemployment, it was found that the average difference between the rates in the 12 countries in the euro zone average was 3% higher than in 1990. France and Germany had unemployment rate of 9% and 10%, yet the Netherlands, Ireland and Portugal had rates between 2% and 5%.

On inflation, there has been more convergence. In the early 90s, the average difference between member rates in the euro zone average was 2.5%, and in the early 2000, it was down to 1%. However, Germany and Belgium have inflation rates, around 1%, while Ireland, Greece, Portugal and The Netherlands have rates around 4%.

Although the whole euro zone has the same interest rate, there is still the question of real enters rates due to varying inflation. In the late 90s, all countries except Greece and Portugal had much the same real interest rates. In early 2002, however, Greece, Ireland, Portugal and The Netherlands actually had negative real interest rates. These countries need higher nominal rates to combat inflation, but of course, can’t have one. Low inflation countries, like Germany and Belgium, have the highest real interest rates due to low inflation, but would like lower nominal rates to stimulate the economy.

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Saving Money With Student Loan Debt Consolidation

On 03.03.11, In Personal Finance, By Stevie Wonder

The concept of loan consolidation is one that involves someone taking out a loan in order to clear their existing debt. Student Loan Debt Consolidation is a very practical repayment tool where all a student’s loans are combined in to one master loan. This consolidation helps to significantly reduce the student’s monthly payments (indeed they can be reduced by up to 50%).

Why should one think of consolidation? Well let’s face the fact that for many students life after they have graduated can be expensive. This is due to all the expenses of living that come with post graduate living (like cost of housing, relocation and car payments). The student loan debt consolidation helps one to reduce their monthly payments and therefore help them manage their budget better.

An additional benefit of student loan debt consolidation is the fact that it helps melt down several loans in to one master loan. This in turn helps save one from frustrations; reduce the risk of one missing a monthly payment and it all helps improve one credit score. Apart from the above benefits, there are more benefits and some of the common ones are as below:

Common benefits of student loan debt consolidation
• Decreased monthly payments up to 50% in some cases.
• If one makes an early payment they cannot be penalized.
• It simplifies one’s entire monthly bill paying paper work in to one monthly payment.
• With consolidation, there are no co-signers required, no credit check and no fees (this is for federal consolidation only).

It is very clear that for people who are having difficulties paying their student loans, the option of consolidating their student loans is the best. Having multiple payments would most likely lead to forgetting payments and falling late on them. By consolidating all your loans into one, you’ll stress a lot less over your debt.

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