To Will or Not To Will, Do’s and Don’ts in Making A Will

First things first, you should have a will. Wills not only do the obvious: distribute wealth and possessions to loved ones; they also leave an impression on how carefully one has managed his or her estate especially for those left behind.

The following are things one should and should not do in making a will:

Do update your will

Everything changes. Possessions, money can increase or decrease. Estate tax laws change in a whim thanks to Congress. The IRS can just as well alter these laws depending on whose side they are on and how they interpret it. There are varying laws in each state. It is important to evaluate every major change in your life. Doing so could change your will for the better and your death a lot more peaceful.

Do name the correct executor

Executors should be ethical, honest, and efficient and be ready to give his or her service at the drop of a hat. Ensure that the potential executor has been properly briefed and that his or her consent has been received. It also helps to have one or two alternates. It is also suggested that one name an executor younger than yourself. The point is to lessen the chances of having an executor die before you do.

Do not name the same person as guardian and trustee

It helps to not name the person you entrust with your children with the same person you entrust with your money and finances. Having different people fulfill these varied responsibilities is important. It keeps the system in balance and each person doing the role he or she knows best what to do.

Do not leave too much for a spouse

Leaving money that is more than sufficient to your spouse is not a very good idea. It takes away wealth that your children should just as well have and you will not be able to monitor your finances if all of it is entrusted to your significant other. Depositing some of your financial wealth to a trust is one way to keep it growing.

Do not be too specific

Some families fight as to who gets the blender and who gets the kitchen sink. It is important to not be too detailed in your will as to who gets what. Being too specific could result in unnecessary and costly problems later on. It is advisable to entrust a group of your possessions to a person than listing down which item will go to whom. It saves time and is more efficient, reasonable and sensible.

Re-Financing with a Line of Credit Loan

Some homeowners might consider re-financing with a home equity line of credit as opposed to a traditional loan. There are definite advantages and disadvantages to these types of situations. The key to understanding whether or not re-financing with a home equity line of credit is worthwhile involves understanding what a home equity line of credit is, how it differs from a home loan and how it can be used. I will briefly cover each of these topics to give the homeowner some useful information which may help them decide whether or not a home equity line of credit is ideal in their re-financing situation.

What is a Home Equity Line of Credit?

A home equity line of credit, sometimes called a HELOC, is essentially a loan in which funds are made available to the homeowner based on the existing equity in the home. However, in this case, it is not really a loan but rather a line of credit. This means a certain amount of money is made available to the homeowner and the homeowner may draw on this line of credit as funds are needed. There is a specified period in which the homeowner is able to make these withdrawals. This is known as the draw period. Additionally there is a repayment period in which the homeowner must repay all of the funds they withdrew from the account during the draw period.


How Does a Home Equity Line of Credit Differ from a Home Equity Loan?

The difference between a home equity line of credit and a home equity loan is really quite simple. While both loans are secured based on the existing equity in the home, the manner in which the funds are disbursed to the homeowner is rather quite different. In a home equity loan the homeowner is given all of the funds immediately. However in a home equity line of credit the funds are made available to the homeowner but are not immediately disbursed. The homeowner is able to draw against this line of credit as he sees fit. There are limits to the amount which can be withdrawn and there is also a limit on when funds can be withdrawn. A home equity has a draw period and a repayment period. Funds can be withdrawn during the draw period but must be repaid during the repayment period.


How Can a Home Equity Line of Credit Be Used?

One of the biggest advantages of a home equity line of credit is that the funds can be used for any purpose specified by the homeowner. While other loans such as an auto loan or even a traditional mortgage might have strict restrictions on how the money lent to the homeowner can be used, there are no such restrictions on a home equity line of credit. Common uses of a home equity line of credit include the following:

* Home renovations or improvement projects
* Opening a small business
* Taking a dream vacation
* Pursuing higher educational goals
* Opening a small business

In some cases the interest paid on a home equity line of credit may be considered tax deductible. This may apply in situations where the funds are used to make repairs or improvements to the home. However, these expenses are not always tax deductible and the homeowner should consult with a tax professional before making decisions regarding which interest payments can be deducted.

Small Business Credit Cards

In today’s economy, small businesses play an important role. These days, it is easier than it ever has been to start a new small business. There are all kinds of new businesses popping up all over the United States, from department stores to gas stations. With new businesses on the rise, the owners should be looking into small business credit cards - for numerous reasons.

The best reason to get a small business credit card is for separating your personal finances from any business related finances. Once you have a small business credit card, you can start making all of your purchases via Internet, phone, or in person. Business credit cards are accepted virtually everywhere, which is great for those who need equipment or supplies in a hurry.

If you own a small business, you’ve probably experimented with using your personal cash for company purposes. This can get ugly in a hurry, which is why you should invest in a credit card for your small business. You can make purchases without having to worry about cash, then pay it back later. You won’t need to keep track of everything either - as you statement will be mailed to you at the end of the month, letting you know exactly how much you spent.

A small business credit card is also a great way to establish some credibility with your business as well. When you pay with your credit card, it looks a lot more professional than using cash to make your purchases. It will gain the respect of financial companies, and help your business build some credit as well. After you have had a credit card in good standing for a few months, you’ll be able to apply for a small business loan and get the best rates - along with the higher amounts.

Even though your business may not have a 6 figure income or budget, small business credit cards can still help your business grow and prosper. Credit cards are always great to have, simply for the fact that you never know when you need money. Your office equipment may crash and need replacing, or another emergency may come up. If you don’t have a credit card for your business, the financing alone could shatter your daily operations.

Small business credit cards will also give you plenty of rewards as well. Most cards will give you cash back and certain rewards on just about anything you purchase. From gas to equipment, you can get rewards simply for using your credit card. You can increase your profit margin as well, which is always a great thing. If you have other workers who are authorized to use your credit card, you’ll get more rewards - and much faster as well. This is also easier on your business, as your workers will be able to get what they need, when they need it.

All in all, small business credit cards are always great to have around. They will provide your business with rewards and convenience, eliminating the need to use cash with each purchase you make. These cards will also protect the future of your business, and allow it to grow. If you own a small business, you shouldn’t hesitate to look into these credit cards. Once you have found the best credit card for your company, you shouldn’t hesitate to apply. Credit cards are always great to have around - even if your business is just getting started. Before you know it, your small business credit cards will more than pay for themselves.

Know Your Rights: What Every Consumer Needs to Know

Building good credit history is extremely important to one’s life. There are many things that you can be deprived of if you don't have a good credit history.

The magnitude of building credit goes far beyond clothes and groceries. It is more than just those petty cash advances or cash back rewards. Building credit would appropriately mean building your life as well.

Why? Simply because the way you handle your credit will put a great impact on your way of life, on your career, the way you transact business with other people, and even on the place where you live.

Your credit history is one of the most important factors employers, lenders, property owners, or business owners will consider.

For this reason, it is extremely important for you to learn how credit is bestowed or rejected. It is also imperative to know what to do in case you have been unduly cared for.

In the United States, the Federal Government had provided its citizens certain major laws that control credit. These rights have been stated as provisions on Fair Debt Collection Practices Act and Fair Credit Reporting Act.

With these two particular laws, every consumer is entitled to such rights stated therein. It is extremely important that the consumers know these rights so as to bear witness on whatever maltreatments or unduly practices of debt collectors and lenders.

Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is one of the written laws of the United States, which had been included in the United States Code as Title VIII of the “Consumer Credit Protection Act.”

The main focus of this particular law is on the guaranteed “ethical practices” in the ways of collecting debts upon the consumers. It also seeks to present consumers with an opportunity to obtain and dispute legalization of any information regarding a particular debt so as to guarantee the data’s correctness.

In essence, Fair Debt Collection Practices Act encourages just, rational, and non-discriminatory treatment of consumers by forbidding debt collectors from utilizing unjust, offensive, or misleading actions.

The Fair Debt Collection Practices Act is applicable to qualified debt collectors capable of collecting loans that they didn't create.

However, this act doesn't theoretically pertain to department stores, banks, and other lending institutions that have their own debt collectors; no lending company of good reputation is allowed to make use of the said practices.

Under the Fair Debt Collection Practices Act, the following provisions were made:

1. Debt collectors are only allowed to contact other people, aside from the debtor himself, only to find out any whereabouts of the debtor.

2. Debt collectors aren't allowed to contact the debtor before 8:00 a.m. and after 9:00 p.m. local time.

3. Debt collectors aren't permitted to intimidate, pressure, or make threats to the consumer with legal action or arrest if it is not duly planned, considered, or made known to third parties, or at least talk about debts with them.

Fair Credit Reporting Act

The Fair Credit Reporting Act upholds the confidentiality, discretion, and truth of information as used in creating customer credit reports. It seeks to control the distribution, collection, and utilization of “consumer credit information.”

Under this law, the credit reporting agencies are required to uphold absolute, full, and accurate files and information.

With this act, consumers are entitled to receive their credit reports and to take actions to validate the correctness of information contested by a customer.

The consumers are entitled to such actions under this law:

1. Credit bureaus are permitted to provide credit reports only to those with a lawful business causes

Credit bureaus are not allowed to disclose any information or credit report to institutions that have no legal basis as to their request for a particular credit report information. Only entities such as insurers, employers, creditors, and government agencies are allowed to receive an individual’s credit report as part of the evaluation process.

2. The consumer’s right to know regarding denied credit

In cases like denied credit, consumers have the right to know about the details of such report. With this, consumers can identify which credit bureau issued such report.

In this way, the consumer will be able to check if there has been any discrepancy.

These are just some of the rights consumers can enjoy under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.

With these laws, the rights of the consumer to a just and fair treatment are upheld.

No Fret Family Budget

For some, the idea of a budget is often a blur. It is frustrating to see how hard it is to do a budget and realizing that with one wrong purchase, you can actually ruin the entire thing. And this has been a perennial headache for most homemakers.

It is about time to overhaul the way people look at budgeting. It can actually be a great way to keep track of your family's expenditures and help you evaluate the things that you spend the lion's share of the family's earnings on.

What is a budget? A budget is a tool for handling your finances by controlling the family's expenditures in a way that money is enough for paying up bills, and still ensuring that savings are set aside for future expenses - vacations, or children's education, or even for retirement.

Try these simple steps in preparing a no fret family budget, and see the benefits of intelligent spending.

1. Gather three months of your pay stubs and get your average monthly earnings.

2. Get out three months of your monthly bills. Do this for the fixed expenses like the rent, phone bill, car payments and other loans that come monthly. Add them up and get the average. Do the same for other expenses like groceries, and credit card bills.

3. Evaluate the results of your computations. Looking at your average monthly earnings against your monthly fixed expenses and other monthly expenses, think of some ways to economize. Cut back on some items that are somehow unnecessary.

4. Knowing the facts of your income and expenses, develop a family budget and try to stick to this monthly budget.

5. Now that you have a monthly budget, set up a savings account. Save up by making regular deposits to this account.

6. Keep track of this monthly family budget just to see if it is working for you. Try to fine-tune the "rough edges" of this budget as you go along.

7. If you can get hold of a personal budgeting software or spreadsheet application to keep record of your budget, the better. This will make organizing your expenses very easy.

These are the basic steps in developing and implementing a no fret, easy to stick to monthly family budget. Of course each family has diverse needs and wants. You have the freedom to develop your own monthly family budget, depending on your family’s financial background and needs. No matter how you do it, just focus on the end result, which is building a savings that leads to a bright and financially stable future for your family.