Mortgage life insurance

Mortgage life insurance is a policy that you take out in order to help towards any outstanding mortgage payments in the event of your death. Whereas other life insurance policies are used to cover other outstanding debts, help towards funeral costs or to provide a legacy for their families, this form of life insurance is specifically designed to help pay off your mortgage. This means that your dependants won’t have to worry about making repayments after you’re gone, and it offer them a more secure home.

Mortgage life insurance is a form of decreasing term life insurance, meaning that the amount of cover decreases as time goes on. This is because, as you make repayments on your mortgage each month, the overall outstanding amount goes down and so the amount you’d need from the policy to pay off the debt decreases accordingly. This is usually a cheaper option compared to other life insurance policies.

Mortgage payment protection

The key difference between MPPI and mortgage life insurance is that MPPI covers you while you’re still alive. MPPI covers your payments in the event that you are unable to pay your mortgage due to illness or an accident (or in the case of some policies, with unemployment also). This gives you between 12 and 24 months’ worth of mortgage payments while you recuperate and get back on your feet. There’s usually an exclusion period of about 60 days from the start of the policy where you can’t claim for unemployment, but can still claim for sickness and accidents.

MPPI is useful if you think that you wouldn’t be able to make your mortgage payments were you to be without your monthly income. This protection only covers your interest payments, however, so it won’t reduce the overall size of your mortgage.
Which of the two you decide to use really depends on your circumstances. Mortgage life insurance is more of a long term investment, whereas MPPI gives you a temporary stop-gap if there are any unforeseen circumstances. Either way, you’ll be able to ensure that you and your family are protected and that your mortgage is one less thing to worry about.

This guest post was written by Jamie Gibbs, the resident blogger on behalf of Confused.com – For additional information on mortgage life insurance and mortgage payment protection see the Confused.com website for more details.

Some companies, such as Cavalry Portfolio Services, extend their outreach and participate in charitable giving both on a local and national basis. Many nonprofit organizations rely on donations from companies such as these. Yet, the economy has taken its toll, and some companies have been forced to make significant cut backs to their charitable donations.

If your company is one of those hit by the economy, making it difficult to give back to your community, here are 5 reasons why you should reconsider your efforts.

1. Businesses are what drive the economy.

Both in our local communities, and nationally, business is what fuels economic growth. Whenever an exchange of money occurs, businesses are going to spend it on other services or to contribute a portion to nonprofit organizations. By giving back to the community, your company has the opportunity to create more jobs and ultimately a stronger economy.

2. Companies have the power to make their community thrive.

It is rewarding to live in a thriving community where people have jobs and more services are available to residents. Companies can help achieve a thriving community through job creation and by donating time to help make the community a better place. When money is tight, many companies choose to instead volunteer to clean up parks or assist at fundraising events.

3. Businesses are one of the biggest forces in the world.

Businesses have the power to give jobs, fueling economic growth, or to downsize, causing economic difficulty. Because of this power, it is crucial that companies do all they can to give back to their community.

4. People are a company’s biggest asset.

Your company runs on your customers, your investors and your vendors. By giving back to the people in your community, in turn, you can strengthen your relationships.

5. Businesses have a responsibility.

With power comes a responsibility to give back. Businesses who take environmental resources should give back to the environment through donations to organizations who promote clean environments or through participating in environmental friendly activities such as recycling.

Every company should be concerned with the sustainability of their community. For this reason, it is crucial for businesses to give back on a local and national basis.

Finance happens to be one of John’s favorite things to write about. If you’d like to find out more about Cavalry Portfolio Services, please visit  http://www.cavalryportfolioservices.com/

With the recent economic conditions, an increasing number of people have found themselves in difficulty when trying to pay bills. Through no fault of their own, they may have defaulted on mortgage payments or credit card bills. Even though this may have been because of being made redundant or illness, the credit reference agency will not consider the circumstances and just see the missed payments. Right now, many are recommending a guaranteed bank account as a viable alternative to a current or basic bank account. But is it really as good – and what will it cost you?

Reducing stress with a guaranteed bank account

The surge in guaranteed bank accounts can be explained by banks’ extreme prudence in terms of taking on new customers. As part of the cautionary measures introduced after the debt level hit dangerous levels, thorough financial tests are conducted on everyone requesting a current account. And so, for a bankrupt, even thinking about getting a bankruptcy bank account can be a major source of stress. After everything they have been through financially, the last thing they want to go through again is scrutiny by a bank when trying to set up a bank account. For them, a guaranteed bank account is excellent news. With this type of bank account, after all, there are no credit checks, no uncomfortable meetings with bank managers and no fear of being rejected. As it says in the title, you are guaranteed to be accepted.

Almost as good as a basic bank account

But is a guaranteed account really as good as a current account or a basic bank account? The answer depends on your personal preferences to a certain degree. Both a basic account and a guaranteed account will naturally deny their customers the kind of generous overdraft facilities of a current account. Other than that, however, the differences between them are all but negligible: A guaranteed bank account will give you access to banking facilities such as a prepaid Mastercard, online banking and the facility to withdraw money. Some even offer you the chance to set up direct debits and standing orders. Other benefits can include payment protection, banking assistance from experienced personnel and can even help you rebuild your credit score. And in comparison with a basic bank account, some guaranteed bank accounts offer easy and extensive online banking options which may actually make them seem more attractive than a basic bank account.

But what about the fees of a guaranteed bank account?

I know what you’re thinking: All of this sounds too good to be true. And admittedly, the downside to a guaranteed bank account is that there are fees involved. This is a necessary disadvantage, as there is no credit involved so the bank can only make money from the bank account holder by charging fees. They typically range from a monthly fee of around ten to twelve pounds fifty, a fee for using the ATM machines and the occasional top up fee. Some banks may also charge a transaction fee, although the ones that do this are unlikely to charge a hefty monthly fee as well. This may make a guaranteed bank account seem like an expensive alternative – and yet, the indirect costs of a standard bank current account or a basic account add up over time as well. So it’s important to do some research before deciding on which  bank account is for you.

The most important message, however, is that guaranteed bank accounts have brought a fresh perspective to banking – and those in financial difficulties are likely to profit most from it.

Image from Stock.XCHNG.

In January 2012 though, figures showed that the unemployment rate in Scotland has risen by 19,000 to a new figure of 221,000. This means that Scottish unemployment is now higher than that of the United Kingdom.

The new rise in the unemployment figures lead to the Scottish First Minister, Alex Salmond to request an urgent summit which would involve the finance ministers from the UK government and 3 devolved administrations.  The aim is to put together a programme to create jobs.

Mr Salmond said that he felt the UK government’s economic policy was in a terrible state and that by isolating Europe, then things would only get worse.

Scottish ministers are desperately trying to return Scotland to a level of sustainable growth but feel that they have to deal with harsh cuts from the UK government.  However the Scottish First Minster says that there is a higher level of employment in Scotland and a lower rate of economic inactivity than the UK.  They suggest that the UK government and Scottish government have to work together to rebuild the economy.

However the new unemployment figures are disappointing and given that the Scottish economy has grown more slowly than the UK in general, the same can be said to be happening to employment. The Scottish government opposition is looking for the current government to change its economic policy to avoid disastrous levels of unemployment. The unemployment level is rising much faster than in the rest of the UK.

Although it was initially thought that the Scottish economy was recovering well and even outperforming the UK in general – mainly due to their economic policies – it appears that this was a little presumptuous.

Calls for investment in businesses, infrastructure and enterprise to transform the Scottish economy and create opportunity and hope for Scotland have been made by the opposition in the Scottish Government.

Of particular concern is the rising youth rate of unemployment.  Scotland could well lose a whole generation of people who have skills.  Small businesses have been encouraged to take on young people in an attempt to stimulate confidence and create a new generation of entrepreneurs. Unless the Scottish economy improves however, the unemployment rate looks set to increase.

Having debts you’ve lost control of can be stressful for all kinds of reasons: the lack of financial security, the emotional difficulties, the frustration of not being on top of your financial situation – these are all common responses to debt problems which you may feel.

However, if you live in Scotland, there could be a suitable answer to debt problems – in the form of a Trust Deed.

Let’s look at how entering a Trust Deed could help you free yourself of your unsecured debts.

What is a Trust Deed?

A Trust Deed is a type of insolvency solution, exclusively available in Scotland.

A Trust Deed is designed to provide a way out of debt for people with significant unsecured debts (e.g. credit cards, personal loans, overdrafts) that they’ve fallen behind with – and can’t afford to pay back in a realistic period of time.

Once a Trust Deed has been agreed with your unsecured lenders, you will:

• Make one payment per month you should be able to manage – as it’ll be calculated to be affordable after all your essential living costs have been covered
• Be protected from any further legal action from those lenders
• Have any remaining unsecured debt that you can’t afford to repay written off once the Trust Deed has ended successfully – in most cases, after 3 years.

How could you set a Trust Deed up?

Trust Deeds are available in Scotland – and require the assistance of a qualified Insolvency Practitioner (IP) to set up.

The IP – who is often an accountant or solicitor – will discuss your finances with you and, if a Trust Deed looks like your best option, draw up a Trust Deed proposal: a document showing your lenders how much you can afford to pay towards your debts.

The IP will then be responsible for sending this document to your various unsecured lenders for them to review. Unless more than half of your lenders – or those who represent a third of the total amount you owe – object to your Trust Deed, it will become protected by law, and you and your lenders must stick to all the agreed terms while it’s in progress.

Are there any downsides to a Trust Deed?

A note of your Trust Deed will be recorded on your credit file for six years from the day it begins – which is likely to make further borrowing difficult during this time.

Also, if you’re a homeowner, it’s likely you’ll have to release some equity so you can repay your lenders more of what you owe them.

This is actually excellent news all round anyway, because countries who have the Euro as their currency have really struggled with a lack of tourism and desperately need British holiday makers to boost their economies.  The ongoing crisis in Europe has strengthened the pound, offering great benefits to the British travellers.

The current exchange rate means that holidaymakers who go to European countries that use the Euro will get an additional 19 percent for their money which equates to around ninety five pounds extra money for every five hundred pounds worth bought.

Welcome news indeed for those who want to go away but are still feeling the pinch after an expensive festive period. Hotels, food and drink, clothes and travel are all now considerably less expensive making it easier for families and business travellers alike.

Statistically the number of holiday makers who have travelled to Spain increased by nearly nine percent last year and the cost of resorts have remained stable.  Spain offers good value for money and is ahead of other European countries in this area.  Other Spanish resorts such as the Balearic Islands also look as if they can compete with the Euro zone countries by offering travellers great value in exchange for the money they spend. Greece on the other hand is more expensive, almost twice so for the same things in Spain.  Given the economic crisis there, it could be that they will be forced to cut costs to draw in holiday makers and boost their economy that way. It is expected that Portugal will follow as they gain a great deal of money from holiday makers.

As always the usual tips apply when exchanging foreign currency.  Shop around and avoid exchanging money at the airport or ferry terminal as you will get a much worse rate, despite the improved Pound to Euro exchange rate.

Even the best-laid plans can sometimes not be enough to cover an unexpected expense. Even if you have savings, it can be a good idea to take out a loan as opposed to wiping out your hard-earned nest egg. Interest rates are currently low, which is bad news if you are looking for a good return on your savings, but not so bad if you are looking for a good deal on a loan.

There are different kinds of loans available that vary according to how much you want to borrow and for how long a period. You should shop around for the best interest rates to make sure you get the best deal possible. Other factors, such as your credit history, will also dictate the type of loan and terms and conditions that are available to you.

If you already have a loan, but suspect that you are paying more than you need to, there is nothing stopping you from changing lender, although there may be penalty fees for settling your existing loan early. Don’t assume that your bank will always give you the best rate. Check online using a comparison website that will show you a selection of like-for-like quotes.

By providing a comparison website with a few details of your requirements and circumstances, you will be able to see a list of lenders who will provide you with the amount you need along with details of the interest rate, the monthly repayments and the total real cost of the loan. If you see a loan with lower monthly payments or perhaps want to change the term of your loan (make lower payments over a slightly longer period) then this will be easy to arrange.

Short-Term Loans

If you have simply overspent or have an unexpected but relatively low expense, then you could consider a short-term loan. You could initially discuss arranging an overdraft with your bank but before going ahead, check this against the costs of other forms of finance.
Interest rates on short-term loans tend to be higher than on larger long-term arrangements so be realistic when deciding how long you need to repay the loan.

Long-Term Loans

These are generally for larger amounts over a longer term and it really pays to shop around for these types of loan. Use a comparison website to see the terms offered by a broad selection of lenders.
It is often more revealing to look at the total amount payable rather than the interest rate to get an idea as to how much the loan will cost in real terms.
However, do not be tempted to overstretch yourself with the monthly repayments just to pay a lower credit fee. It is better to pay a little more in credit fees in the long term than to get yourself into financial difficulty trying to pay off loan on terms that you might struggle to meet.

How does the DRO work?

The debt relief order will help to fast track some of the less complicated debt cases through Court without requiring you to attend. During the period of the DRO, you won’t have to make any payments towards the debts listed in the order, which normally lasts twelve months. The creditors of these debts won’t be able to take any action against you during this time and after the 12 months the debt will be cleared.

How to apply for a DRO

You can apply for a DRO online with an official intermediary who will help you complete your application. There is a cost of £90 which can be paid in instalments over six months. When the Official Receiver receives your application form and fee, the order will usually be made administratively without having to go to court if all the requirements are met.

There are strict criteria when applying for a debt relief order. You won’t be able to apply if you have a vehicle which is worth more than a thousand pounds or have any savings or any assets worth over three hundred pounds.
Furthermore, only certain type of debt (also known as qualifying debts) will be considered in a debt relief order including:

1. Loans, overdrafts and credit cards
2. Council tax rent and telephone utilities,
3. Social fund loans and benefit overpayments
4. Conditional sale or hire purchase agreements
5. Buy now and pay later agreements.

You will still have to repay any debts that the debt relief order does not include.. You can only apply for a debt relief order once every six years.

What happens during the DRO period?

You will still need to pay your usual household expenses such as rent, gas, electricity, Council Tax and water charges. Other debts that are not included in the debt relief order will also have to be repaid. You will have to tell the official receiver about any other new debts you have for the duration of the order.

Things to Consider before taking out a DRO

There are consequences of a debt relief order as part of a debt management plan which should be considered before taking one on. Your credit file will show the debt relief order for six years and may harm your chances of getting future credit. You may also find it more difficult to open a bank account once you have a DRO. There will be also strict restrictions on your financial activity during the period of the Order.
There are benefits to a debt relief order too. The main one is that your creditors will not be able to get their money back through legal action. When the debt relief order comes to an end all of the debts listed in the order will be cleared.
You may have other options for dealing with your debts besides applying for a debt relief order. A debt advice company will be able to give you further information on debt relief orders, debt management plan and bankruptcy procedures.

For further information on debt relief orders we suggest the following resources / services:

• Consumer Credit Counselling Service – Find out if a DRO is suitable for you and get information on costs and how to apply.
• The Debt Advisory line – Detailed explanation on Debt Relief Order as an alternative to bankruptcy
• MoneySavingExpert.com Forum – Useful forum thread on MSE with information on DROs

Payday loans, on average, are for around £300 and the borrower repays them when they get paid. This can help out with additional expenses during the month and can also help people who do not have the best credit history.

You can apply online for payday loans, this means that the money will be deposited in your bank account very quickly. This might also reduce the checks that need to be carried out to verify income or your credit history.  All that happens is the money lender takes the money out of your bank account when you get paid.

Another way of getting a payday loan is to go to a store that offers this service. The borrower just takes their proof of employment and income such as payslips and bank statements. They then write a post dated cheque for the amount they wish to borrow plus the fees that the loan will incur over the borrowing period. On payday the borrower can either go into the store and repay the loan in cash or the money lender will deposit the cheque.

This type of loan is ideal for people on low incomes who do not always have the best credit history and so may not qualify for a bank overdraft.  Although the interest is higher than a personal loan or overdraft it is a short term solution to financial difficulty. Money lenders argue that because the loan is only short term then the interest charged, although higher, is not too much because of the short time it is borrowed for.

When compared to a personal loan it means that the borrower can borrow less money over less time. The checks involved with payday loans are less than with a personal loan meaning the borrower can get the money they need far quicker than if they applied for a personal loan.

A personal loan may be a better option for someone who is looking to borrow more money over a longer time scale but a payday loan can be ideal for many in the short term.

One of the main advantages of payday loans is that you can get instant approval, meaning you can get your money quicker. The way payday loans work is that the financial service offering the loan will take a post dated cheque from you and you are expected to pay the money back before that date.

It really is that simple; you can usually apply for your loan and get a decision instantly. This is much better than applying for a personal loan as the process is shorter and fewer checks are made. This is because the payday loans companies have got their system working efficiently. This is what they do and they do it well. They have the capability of carrying out instant checks meaning that you will get your money much sooner.

Some of the criteria that you will need to qualify include:

• Are you over 18?
• Are you in employment?
• Do you have a debit card and a bank account?
• Are your wages paid into your bank account?

If you can say yes to the above questions then you will more than likely be approved for a payday loan. A credit check will be carried out, but even if your credit history is not the best it does not preclude you from payday loans.

The cost involved with payday loans is higher than personal loans or an overdraft.  The critics of payday loans say that low income families are being targeted by money lenders with the promise of getting money quickly but that the costs they have to pay don’t make it worthwhile.  For example if you borrowed £80 you would typically repay £100. This is the choice you will have to make.

While there are costs involved and the interest is higher than other money lending options the loan is very short terms so the amount of interest that can be accrued is minimal.  That isn’t to say that it is a cheap option, but it is a good options for those months when ends won’t meet and can often be in your bank account the same day.