Role of a Collection Agency in Student Loan

Collection agency is a company that works jointly with the money lenders or banks to recover the amount or resource taken as loan from the borrowers. There are different types of loans available in the market like car loan, home loan etc. In order to complete their studies, students are going for loan. This loan is termed as student loan. The job of a collection agency comes into the scenario when their loans turn default and they are unable to repay it.

Education is getting progressively more costly, especially for the higher education. It seems to be difficult for the students to make a choice for loans, predominantly from the private lenders or banks. Most of these loans have a very high interest rate. It becomes more and more difficult to receive scholarships and also regional loan support. Thus the loan repayment becomes tougher day by day. Loan companies that run privately employ collection agencies for getting scores settled in most of the cases. This “collection agency student loan” is a problematical process, where students have faced repeated harassment from a number of sources.

The problem after the completion of courses from premier institutions, many a time students are rendered jobless. This makes their life difficult and the financial assistance they had got during the period of education turns into a defaulted student loan, within a period of time. It has been seen that they are called up by collection agency at unreasonable hours or at their work. They give threatening to take criminal action against lender. They also make deceptive or false representations and contact family members, friends or co-workers about balance due for the loan. Their ways to recollect student loan are unique and often students and their guardians are unable to understand their policies. It has been observed that these manipulate a lot of things when they contact students who have already fallen prey to ill fate.

Make Money from Your Mortgage

Money from Your MortgageIf you have a mortgage it is easy to feel as though the only one with the possibility of making any money is the bank. However, since you’re going to have a relationship with your mortgage for many years to come, it is time you knew how you can make your mortgage work for you, and earn money from you biggest financial commitment.

Repaying your Mortgage

Many people still have the view that any sort of debt is bad, and therefore they will work on channeling all of their funds towards paying off their mortgage. This achieves just one purpose – their house is paid off, however, they are usually left with no other savings, no other investments and no other prospects at a time when they are likely 10 to 15 years away from retirement. When a house is paid off it is either somewhere to live, or it something you can sell to get the money, it’s not both, and if you want to have more than one asset when you retire, it is time to start making money from your mortgage.

This means avoiding repaying your mortgage early, not only because you need your mortgage account active so you can put it to good use, but also because repaying your mortgage early can attract costly exit fees. Exit fees are at their highest in the first few years after you take out your mortgage, but you will often find that exit fees are still applicable even if you pay off your loan just five or 10 years early.

More important costs you need to look at though are the opportunity costs of not using your mortgage to make you money. Home loans are one of the lowest forms of finance available so rather than worrying about the money that’s tied up in your mortgage and going towards a 7% interest rate, look at where you can be investing your money that you’ll be getting returns of more than 10%.

Finally, look at the fact that your repayments will actually be costing you less in the future. With inflation meaning that the cost of everything is always on the rise, in the future you’ll be paying more for your fuel, groceries and power, and you will probably get several pay rises over the years to compensate you for this. However, your mortgage repayments stay the same throughout the term, subject to occasional interest rate movements which go both up and down. Therefore your mortgage repayments will be worth less as the years go by, so as much as they make up a significant portion of your budget, they are also one of your best value costs.

We Know Mortgages: Making Money from your Mortgage

Defying conventional wisdom, is the plan to make money from your mortgage, and there are a number of ways you can do this. The first thing you need to look at though is the equity you have in your home. Equity is the difference in value between what you owe on your home loan and what your property is worth. When you took out your loan you may have bought a house valued at $300,000 and borrowed $280,000. Over the years your home loan amount has dropped as you made repayments, and the value of your house has gone up as the property market has improved, so you may now only owe $200,000 on a house now worth $400,000 so you have $200,000 worth of equity.

You can of course access this equity by selling your home, as it would be the profit you make after you close your loan. Alternatively you can take out a home equity loan and access that money for other investments, while you remain in your home. The portion of your loan you will need to have repaid to qualify for a home equity loan differs between lenders, but you will also want to make sure you have enough equity to make worthwhile investments, and that any fees for the new loan type will be offset by your gains. You are usually not able to access all of the equity in your property either, and instead can access around 75% in most cases, so if you have $200,000 of equity as in the example above, you can borrow $150,000 from your home loan.

A home equity loan can also be taken out as a line of credit, so you can access and repay only what you need at any one time. This means that you would have the $150,000 of equity approved, and you drawn down when you want to use those funds for an investment or purchase, whether that is shares, an investment property or improvements to your existing home to increase its value. With a home equity line of credit you make interest only repayments, and only repay the amount you have drawn down. Plus, because you are using the money to make investments, the interest you pay is tax deductible anyway.

Therefore, you can use your mortgage to make you money in any investments you choose and at the end of the year it doesn’t have to cost you a thing. So since you need to live somewhere and you’re working towards fulfilling the dream of owning your own home, why not have your home working towards some other dreams you have?

Christmas Just Got More Expensive!

When it comes to Christmas dinner, we all want to be left loosening our belts Christmas Just Got More Expensiveand feeling good, but if new statistics are to be believed, that belt may have to be tightened before you can settle down to that turkey.

The survey, conducted by the Office for National Statistics (ONS), has shown that compared to this time last year, the cost of the average festive feast has risen by 7.5%.

Most of the foods and drinks associated with Christmas dinner – red wine and cake for example – are responsible for this increase in price, with only potatoes, carrots and double cream having fallen in price according to the ONS.

These figures have been drawn from the prices of the basket of goods used to calculate inflation each month.

However, in contrast to this news, it would appear that if you’re willing to decrease the mountain of food that you have, it can be possible to have a complete Christmas for less than £200.

The average family in the UK will spend between £530 and £690 on items related to Christmas including; gifts, decorations, food and drinks. However, when questioned, the majority of families with a smaller income said that they would be spending around £182.

This breaks down as approximately: £34 on food and drink, £28 on decorations, £6 on cards and £114 on gifts, for a basic Christmas.

It’s not just consumers that have been hit this winter, with sales of winter related products – including cosmetics and clothing – at a much lower volume than previous years.

 This has been put down to the very mild weather across the majority of the country, meaning that there is less interest in items that would otherwise have been snapped up quickly.

Director General of BRC, Stephen Robertson, has offered his comments on these low sales figures saying “Consumers are not quite in the Christmas mindset yet, although stores are working to generate much-needed sales with high levels of festive discounting,

“Retailers hope that customers who’ve managed their finances carefully in recent months will still treat themselves and their families in December, unhampered by the severe weather which disrupted shopping 12 months ago.”

However, cost is less of an issue for a handful of Sainsbury’s customers than getting their Christmas dinner ingredients at all.

They found their delivery slot following an online order was cancelled when they reviewed their account. Most were re-booked but, in some cases, no alternative time was found and they were given a “gesture of goodwill”.

“We apologise unreservedly to customers who have been inconvenienced in any way,” said a Sainsbury’s spokesman.

 With Christmas set to hit families harder than ever this year, it may be a good idea to check out a range of purchases credit cards to help cut down the amount you spend when shopping with your credit card.

5 Most Common Student Loan Misconceptions

Many college students have to take out student loans in today’s world because the costs associated with attending colleges and universities can be quite high. Taking out students loans to pay for higher education is actually quite simple, but some students seem to be afraid to take the leap and actually get the student loan. Taking out student loans is certainly better than increasing your credit card debt to pay for college.

The 5 most common student loan misconceptions discussed here should help prospective students feel less afraid of securing loans for school.

Getting Student Loans Requires Work

One common misconception college students have is that trying to get a student loan will be too much work. They think the process will be like trying to get good car insurance. They imagine themselves calling around or surfing the web to get different quotes and having to fill out massive amounts of paperwork.

In fact, obtaining a student loan is nothing like that. To get federal student loans, all a student has to do is complete the Free Application for Federal Student Aid (FAFSA). This one form can be filled out online and costs the student nothing. Filling out this one form will let students know if they qualify for federal student loans and for how much they qualify in a given year.

The financial aid office at a given college or university will actually spend more time on the paperwork than the student actually has to spend.

Students Can’t Get Other Aid with Loans

A second common misconception is that students who take out loans cannot also get other forms of financial aid. Actually, students can get scholarships, grants, and any other financial aid in addition to student loans. Student loans can be combined with other forms on aid with no problem.

If a student is getting multiple forms of financial aid, the best way to handle this is to use all money that doesn’t have to be paid back first. Students should apply all scholarship money and grant money to the balance owed to the school. Then, students should only take out student loans for the balance after all other money has been applied. This means students may not have to take out large loans for school.

Students Must Wait to Pay

The third common misconception about student loans is that students think they must wait until after graduation to start paying back the loans. This is simply not the case. Students who work while attending college can start paying their loans back immediately. This means they won’t owe as much once they graduate.

In fact, it makes a lot of sense for students to try to pay for their loans while in school. This will help them financially when they graduate. Once students graduate, they will need their money to pay for housing and other adult expenses. Having to pay for college loans immediately after graduation can take a portion of a student’s monthly income.

Students Won’t Get a Good Interest Rate

Another common misconception students have is that they won’t get a good interest rate on their student loans. They are worried that they won’t be able to afford the student loan payments after graduation because the interest rate is so high.

The truth is that most student loans have very low interest rates. The government wants students to go to school and get their education. Therefore, students should feel secure that they will get a great interest rate, which will keep their monthly payments low. In fact, some students are able to pay more than the minimum payment because of the low interest rate, which means the loan is paid off faster.

Students Will Have to Pay the Whole Amount

A final misconception that many students have about student loans is that they will have to pay back the full amount they borrowed. The loan amount can seem overwhelming, especially to students who are just starting out in the world.

The truth about paying back student loans is that many borrowers find that they don’t have to pay back the full amount or don’t have to pay back any of the loan after graduation. This is due to student loan forgiveness. Students should read the fine print associated with their loans because some lenders will forgive student loans for certain reasons. Loan forgiveness means that a loan does not have to be paid back at all.

Some lenders will forgive student loans for students who go into public service related fields. For example, some student loan lenders forgive the entire student loan amount for students who teach in low-income areas or in hard to staff schools if they will teach for five consecutive years. Nurses, police officers, and firemen can usually also have their loans forgiven.

Students who take out student loans need to be aware of loan forgiveness programs and contact their lenders to find out more information. Even if the whole balance isn’t forgiven, it is possible that a percentage can be forgiven based on a student’s field of employment.

When common misconceptions are cleared up, students can learn the facts about taking out and paying back student loans. Armed with correct information, students can feel good about borrowing the money needed to complete their chosen degree programs.

Students in today’s world need to be educated to be competitive in the job market. The only way to do this is to find money to attend college.

Consequences Commonly Faced Due To Auto Loan Default

While you are undergoing your studies, you plan your future. For you, first and foremost achievement is to get a good job and hefty salary, then a house and the number three on the list is an automobile. Isn’t it? There is hardly anyone out there who could deny the fact. In spite of having a good earning, people have to apply for loans in order to buy a car or any automobile. Starting from a transport company that helps in moving the goods and product from one place to another to a family that plans for an outing, automobile is suitable for both personal and professional purposes. Number of loan applications is more, which signifies a considerable increase in the cases of auto loan default.

Buying a car is dream of everyone. This is what makes it really very important for the individuals to apply for loans. But the consequences that they may face in case of auto loan default must be known to them. This way, however, they could be made serious about taking up loans and paying off on time. Some of the impacts that the auto loan default issue can put on you include the following:

  • It poses negative effect on your credit score. A stainless credit record makes you a reliable customer and hence you must always try to keep it free of any stain. But once you are caught in auto loan default, it will be difficult for you to get out of that blemish.
  • The stain of auto loan default will remain on your credit score for about 7 years. During this tenure, your bad credit will hardly allow the lenders to approve any traditional financing for your benefit.

If you are unable to pay back the debt because of lack of finance at that stage, you can negotiate on the amount with the lender. Based on the law and also on the humanitarian grounds, the lenders may increase the tenure of repayment or may help you by reducing the amount you need to pay as your installment, thereby helping you to get rid of your auto loan default problems.

What to Keep In Mind for Dinar Investment?

Who does not want some additional income? Everyone, isn’t it? Dinar investment is a perfect mode of earning extra without having to dinar investmentface any mental pressure. There was a time when dinar was hardly known to anyone. As a result, no investor took interest in spending on dinars. But nowadays, the same investors wait in long queues to get one chance to invest in the dinars. This is because of the sudden rise in the value of the dinars. This is why dinar investment is preferred so much nowadays.

The increasing price of oil is ultimately enhancing the economy of the country that has enhanced the scope of potential growth of the nation and its currency. As a result, the deals engaging dinars has a tempting appeal of the investors. Dinar investment, therefore, has gained immense appreciation in recent times.The investors are very wise to find out the increasing profitability of investing in the dinars. Online means of dinar investment is preferred by the people. But in this case of spending money, one needs to be really very alert.

Some of the things to check while making dinar investment are as follows:

• Research the online dealer and find out whether he is reliable. Once you are free of this, get an idea about the authenticity of the currency. Then only spend on the dinars.

• While paying only, use safe mode of payment. It is up to the dealer what kind of payment would he accept. Some of them prefer wire transfer, while few like to give personal cheque. Be safe while making dinar investment.

• Be protected. In making online dinar investment deals, you are not in a face-to-face contactwith the dealer. Thus, you try to obtain all the emails as confirmation of whatever you fix with the dealer. As a result, you can use these mails as perfect proofs. This will help you to void further misunderstandings.

Why Do You Take Much Longer To Repay Mortgage Loans?

It is said that student loans are for financing your education, not your lifestyle. Unfortunately, some students do not realize this fact and take loans for eating out, going on holidays trips, buying CDs clothes. These careless students show same careless attitude in theirstudent loans, education loan, mortgage loans employments and do not return their student loans in time due to their habit of spending lavishly on bankrolling their social life. They are unfamiliar with the fact that their defaults on student loans can badly hurt their ability to apply for mortgage loans in future. Always pay your student loans on time and do not let them make you financially sick.

We all wish to have our own dream homes. End of academic life not only begins your professional but family life as well. Most of the people after finishing their studies decide to work in a decent organization and once they get it, they look forward to getting married. The first thing they have to arrange for living a happy family life is their own dream home. Since they recently start their employment, they do not have huge savings to get a home on cash basis. Applying for a mortgage loan is less costly, flexible, and convenient way for them to get a home.

Before applying for mortgage loans, always keep in mind that these mortgage loans are long term. The reasons why do buyers take longer time to repay these mortgage loans include:

Bigger borrowing

Buying property in a decent location is not a piece of cake in terms of price. Global inflation has even made worldwide properties more expensive. The higher prices of the properties force buyers to go for bigger borrowing, which obviously takes more time to repay. On the other hand, the income of the people is fixed and they cannot pay beyond a certain limit periodically. Therefore, they are left with no other option than to defer the period of repayment.

Inability of repayment

Global inflation has badly affected the purchasing power of people. The rising cost of a reasonable living makes it hard to make both ends meet. Many mortgage borrowers can manage only to repay the minimum amount of outstanding loan. This does not declare them defaulters but results in larger outstanding amount of loans which could be much lesser if they pay their regular dues. This large outstanding amount takes longer time to repay.

Higher interest rates

The method of charging interest rate is also responsible for longer time of repayment. If you have taken a loan on fixed mortgage rate, you might end up repaying your loan on time otherwise variable mortgage rate can defer your loan repayment. In variable mortgage loan, the rate can go up with the market rate. If this happens, the interest compounds, and you are only able to pay the minimum amount of loan. Paying less than the regular amount will take you much longer to repay the loan.

Early payment penalties

Bankers or other financial institutions make money on mortgage loans by charging interests on them. Therefore, they never want you to pay the loan early as it cuts down on their income. To prevent this, they set higher early loan repayment charges, which are actually penalties for early clearance of loans. Some buyers find paying the whole loan amount in lump sum along with these high additional fees hard and consider it better to prolong their payments.

William King is the director of Dubai real estate and Dubai real estate agents. Being an entrepreneur and passionate blogger he likes to share his knowledge and expertise with the industry people by writing for various related blogs.

Alleviating the Burden of Tax Debt

tax debtWhen you have a tremendous amount of tax debt on your plate it can add to any stress you may already be facing in your life. Unlike other creditors it is impossible to ignore tax debt in the hope that it will go away. Most other creditors will eventually give up, turn your account over to a collection agency and depend on them to collect the money; the IRS does not work the same way and will never discontinue collection efforts. The only way you can stop the IRS from taking further collection action is to work out a payment arrangement with them instead of unrealistically thinking they will not catch up with you at some point in the future.

One of the most important things to do for your tax debt problem is choosing the best solution to eliminate the debt. While paying a few dollars a month may work if you don’t owe very much money, it will not work if you have a substantial debt—you may not even live long enough to ever pay all the taxes you owe after the IRS adds interest and penalties to your bill. Do not despair; there are several possible solutions for eliminating or reducing your tax debt.

  • Contact the IRS to work out an acceptable payment arrangement
  • Contract with a third party medication agency to help reduce your tax debt (especially important for those who owe back taxes)
  • Contact the IRS for instructions and necessary form for filing an Offer in Compromise if your financial circumstances do not leave room for paying the taxes you owe
  • Wait for the IRS to assign future refunds to past due taxes you owe. Keep in mind this method will not eliminate the assessment of penalties and interest.
  • Borrow the money from the bank and pay your tax debt in full. The problem with this method is while you will be free of your obligation to the IRS, you will pay a higher interest rate than you will by working out a payment arrangement with the IRS.

There are many people facing financial crisis in the current economy, so asking your employer to deduct extra taxes from an already meager paycheck may not be the best answer for the present time. As difficult as it may be to ask your employer to take additional taxes out of your paycheck, you have to remember your tax debt is not going to go away just because you don’t make payments. In fact, this will have quite the opposite affect since the IRS will continue to add penalties and interest to your unpaid debt.

If your financial situation is so dire that you cannot afford to pay your tax debt, you may be a candidate for an Offer in Compromise. An Offer in Compromise is basically a settlement to pay a portion of your past due taxes. Depending on your circumstances you may be able eliminate all of the penalties and interest and some of the principal balance on your pat due tax debt. It is essential to work with the IRS to reach a compromise rather than avoiding the issue and hoping it will eventually go away.

Fixed Annuities – Retirement Solution

Annuities that make payments in fixed amounts or in amounts that increase by a fixed percentage are called Fixed Annuities. Variable annuities, by contrast, pay amounts that vary according to the investment performance of a specified set of investments, typically bond and equity mutual funds.

A life annuity is a financial contract in the form of an insurance product according to which a seller (issuer) – typically a financial institution such as a life insurance company – makes a series of future payments to a buyer (annuitant) in exchange for the immediate payment of a lump sum or a series of regular payments (regular-payment annuity), prior to the onset of the annuity.fixed annuity rate

A lifetime annuity gives retirees a fixed income that they will not outlive. This can be a powerful tool to provide additional security during retirement. Fixed Annuities are an investment contract between an annuitant (investor) and an insurance company. The insurance company agrees to pay the annuitant a fixed income for a period of time based upon the value invested in the annuity. For this reason Fixed Annuities are also referred to as fixed income annuities.

There are numerous types of Fixed Annuities, ranging from payments for a set period of time to payments that are dependent on the life span of an individual. The type of the fixed annuity depends entirely on the structure needed for the individual investor.

Some types of Fixed Annuities, such as the equity-indexed annuity, will actually pay a minimum interest rate in market downturns, and then provide a bonus during the market’s up years. This can be a very effective way to protect the principal of your investment, and still participate in market upswings. The stipulation with this type of annuity is that it is subject to caps and/ or participation rates.

Importance of Marketing Fulfilment for Your Business

marketing fulfilmentMarketing fulfillment is the application of planned and approved marketing strategies for the business growth. The right marketing strategy can create a great difference in the way you do your business and the rate of growth of your business. These marketing fulfillment strategies include the planning and proper designing of the ways in which the marketing is to be done. This includes the collection of proper and related data, the ways of processing the data and mass distribution of the total marketing content to the people or the companies concerned. The distribution can be in the form of direct mail marketing or in a marketing campaign.
There are companies dealing in marketing fulfilment which acts as a type of consultancy providing and designing ideas of marketing related to that company and its products. The success achieved by these companies basically depends on the brand value of the company, the products or services it offers in the market and the business tagline upon which the presence of that company depends physically as well as online. Marketing fulfillment strategies are made or are required by the companies who are unable to structure and implement a proper marketing strategy for their business. So it is always advised to devise a marketing fulfilment strategy before you start a business.
Nowadays every businessman wants to stay ahead in the run towards excellence. So without proper marketing strategies neither can you expect an edge in the market or a great turnover in terms of profits. There are different types of marketing fulfillment strategies or services available in the corporate market and there are companies who solely deal with this term. They help to implement a valid and proper marketing strategy customized to your business, design the different marketing collateral or documents and send them through a proper channel to your concerned target group.