by admin on August 23, 2010
Present economic global crisis makes it difficult not to get into debts but it is harder to get out. However, there are ways of getting out of a debt trap. One option is through debt consolidation loans but it is important to study the other possibilities.
There are ways you can get rid of debt and lead a stress-free life. But what’s important is that you choose the one that best fits your needs:
Interest rate arbitration:
You choose an independent third party who negotiates low interest rates with your creditors. Consolidate multiple bills with one low monthly payment. This is also known as loan consolidation. Benefits are:
- Requires lesser payment each month
- Needs only a single monthly payment instead of many
- Capability to improve your credit score
Debt management:
Debt assistance program gives the following benefits:
- Interest rates are reduced
- Can waive off late fees
- Easily manage multiple debts
Debt settlement:
This is where you have a settlement company/law firm working with your creditors to lower your payoff amount by 40-60%. With settlement, you have 2 major benefits:
- Reduction of interest by creditors
- Lowering of your principal balance
Declaration of bankruptcy:
By declaring bankruptcy, you pay your creditors under court supervision. The benefits are:
- Reduction of interest on your debt by creditors
- Principal debt balance is lowered
- Do not need to use assets to pay off debts.
Using bankruptcy as a reason will affect your credit accountability. It will take a few years for you to recoup your credibility.
Before you decide on the method which will safely get you out of your debt, it is better to consider each one and to determine which meets your needs. Your best option is to look into debt consolidation loans.
by admin on August 20, 2010
- your lender is not a FHOG Approved Agent
- you do not wish to lodge your FHOG application through your lender
- you are not obtaining finance for your home purchase
Applications through the Office of State Revenue require your proof of identity. Regarding circumstances of your application, the following is required:
Contract to purchase a new or established home or an off plan for the home.
Contract to build a home
Owner builder:
Application procedure is quite tedious but you have to work to make your dream come true. Don’t just dream make it a reality by applying for first home owners grant.
by admin on August 17, 2010
You want to buy your first home, but don’t have that critical down payment that’s necessary to do so. Don’t despair; your dream to own a home will soon become a reality for the government is offering offers up a first-time home buyer’s grant. This offer is a great way for many first-time home buyers to realize their dreams of owning a home. With the help of a grant, you can move into your dream house now.
Where eligible applicants can apply:
- The First Home Owner Grant (FHOG) through the Office of State Revenue, or
- Through a financial institution if that lender is a FHOG Approved Agent.
The FHOG application form must be completely filled up by applicants prior to submission with the Office of State Revenue or a FHOG approved agent. You can download the FHOG Lodgement guide and application form.
If you are planning to apply for a loan from a financial institution to purchase an established property or to build a new home, check if your lender is FHOG Approved Agent. Only the FHOG will be able to receive and process your application and even receive your grant funds earlier.
Your application must be accompanied by supporting documents. Also determine what papers are required from your lender.
by admin on August 13, 2010
When your personal debt gets too much to handle, you still have an ace: debt consolidation loans. A debt consolidation loan is used to pay off all the debt you want to include, whether that be student loans, credit card or other debt.
Consider these benefits:
- You are left with only the one loan to deal with and a single monthly payment to make.
- You can reduce your monthly outgoings ·
- You can bring all your debt repayments down to one convenient payment
- You can pay back your debts faster and become debt free
From a practical point of view, your debt is such that it will literally take forever to repay. Credit cards can be one of the hardest debts to repay as they have the potential literally to go on forever. This is because most credit cards will only require you to make very low monthly repayments that do little more than pay back the interest that has accrued and this means that the principle debt is hardly getting repaid at all.
You are not allowed to extend your credit over years without reducing the amount owed. You will be lent a fixed amount and you cannot go above this amount.
Fixed period payments are fixed for debt consolidation loans; for example five years, after which period the debt will be repaid in full. However, many debt consolidation loans will run for terms much longer than 5 years largely due to the amount of debt.
On the positive side, debt consolidation loans potentially save you literally thousands in interest payments. While credit cards and other similar forms of credit will charge you extremely high interest rates, debt consolidation loans will typically charge somewhere more in the region of six to twelve percent.
Debt consolidation is one way out for fixing the financial mess but like so many other types of loans, the company still makes money from you. The companies that provide these debt consolidation loans consistently pay more for your loan than that of an unsecured loan.
by admin on August 9, 2010
One of the best options to own a home in NSW is to apply for a first home owner grant. The First Home Owner Grant (FHOG) program was introduced on July of 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation.
Fully funded by the NSW Government and administered by the Office of State Revenue (OSR), FHOG was established to assist first home buyers to purchase their first home by offering a $7000 grant.
FHOGS is available to people buying or building their first home and who have the following eligibility criteria:
- A person and not a company or trust.
- A permanent resident or Australian citizen.
- At least 18 years of age.
- Applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
- Applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
- Has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000.
- Total value of the property does not exceed the $750,000 cap for eligible transactions which commenced on or after 1 January 2010.
- The applicant and/or their spouse/de facto are receiving a grant for the first time under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid).
- One of the applicants will occupy the home as his/her principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or construction of the home.
The criteria for eligibility to own a home under FHOG are not too difficult to accomplish. Make use of this opportunity to own a home via the first home owner grant.
