Managing Your Money: Electronic Check Conversion
June 22, 2008
Suppose you’re at a store making a purchase and decide to pay by check–at least, that’s what you believe you’re doing.
But then the clerk runs your check through a machine and hands the voided check back to you with your receipt. Later, when you get your bank statement, that check isn’t listed with your other check transactions. Instead, you notice an electronic debit to the store for the amount of the transaction.
What happened? Did you pay by check or not? Why did the clerk return the check to you? The answer is, you just experienced electronic check conversion. Read more
Your Credit: How to Establish, Use and Protect It
June 22, 2008
Good credit is valuable. Having the ability to borrow funds allows us to buy things we would otherwise have to save for years to afford: homes, cars, a college education. Credit is an important financial tool, but it can also be dangerous, leading people into debt far beyond their ability to repay. That is why learning how to use credit wisely is one of the most valuable financial skills anyone can learn. This article will cover the following topics:
* What Lenders Look For
* How to Establish Credit
* Protecting Credit
* Common Reasons for Denying Credit
* Improving Poor Credit
* Divorce and Credit
* Paying Off a Loan Early Read more
Bank Products – What’s Insured and What’s Not
June 22, 2008
Investment generally involves some elements of risk. It is important for you to know how secure your family’s nest egg will be as you evaluate various investment vehicles. The information below provides some basic overview of bank related products and an indication of those that are insured as compared to those that are not insured.
Deposits vs. Investments
Any money you have in savings and checking accounts or in certificates of deposit (CDs) is known as a deposit. Your financial institution is committed to returning all of your deposits (plus interest) whenever you ask. You can even take money out of a CD before it matures, however, you will have to pay a penalty for early withdrawal.
Your institution is also required to carry government insurance on your deposits up to $100,000. The insurer is usually the Federal Deposit Insurance Corporation (FDIC). Contact your financial institution if you have specific questions about your insured deposits.
Financial institutions can also provide investment products like mutual funds and annuities to their customers. Your bank or credit union may sell you this type of product, but it is not obligated to pay you back for any losses you may have if the investment is not successful. Read more
FHASecure – Program to Refinance Conventional Mortgages into FHA Programs
June 22, 2008
If you have an adjustable rate mortgage coming due or your interest rate is already too high, you owe it to yourself to look at the safe and affordable financing options provided by government-insured mortgages through the Federal Housing Administration (FHA), which provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and health care facilities. It is the largest government backed mortgage insurer.
WHAT IS FHASecure
FHASecure is a refinancing option that gives homeowners with non-FHA adjustable rate mortgages (ARMs), current or delinquent and regardless of reset status, the ability to refinance into a FHA-insured mortgage. With FHASecure, the lender will not automatically disqualify you because you are delinquent on your loan, and the lender may offer you a second mortgage to make up the difference between the value of your property and what you owe. Read more
How to Read and Understand Financial Statements
June 22, 2008
As a consumer who understands the strategic importance of investing portions of your resources to provide for your family’s financial security, you will also appreciate the need to acquire basic knowledge about financial statements. Why do you need to know, you may ask? By learning how to read and understand financial statements, you will be better able to target and evaluate a corporation and to decide whether an investment product or its stock offering is worth considering for your investment portfolio. You will also be better able to assess the value of a business that you might want to consider purchasing or investing in.
Here are some basic educational information on financial statements from a brochure produced by the Securities and Exchange Commission (SEC) that you will find of value in your pursuit of personal financial investment education. As always, you are encouraged to seek appropriate professional financial and legal advice before making any investment decision. Read more
Knee Deep in Debt
June 13, 2008
Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?
You’re not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn’t have to go from bad to worse. Read more
Taxpayers With IRAs: FYI: The IRS Does Not Approve IRA Investments
June 13, 2008
Washington, D.C. — Investors with Individual Retirement Arrangements (IRAs) should be on the lookout for ads and solicitations that claim that certain types of investments for IRAs are “IRS-Approved” or “IRA-Approved.” The government says these ads are misleading, because the IRS does not approve investments for IRAs.
According to the Federal Trade Commission, the Securities and Exchange Commission, and the North American Securities Administrators Association, investors are getting misleading sales pitches for specific IRA investments via the telephone, the mail and the Internet. Most solicitations are variations on this theme: Read more
Test Your Investment IQ
June 13, 2008
To invest or not? That’s the question when a promoter calls with an offer that sounds like a sure thing. Fraudulent investment promoters lure consumers by claiming that the investment can’t miss. But the promise of big profits usually turns out to be a costly hoax.
Can you tell whether an investment opportunity is solid or risky? Test your investment I.Q. with this quiz. Read more
Deceptive Mortgage Ads: What They Say; What They Leave Out
June 13, 2008
If you’re looking for a mortgage to buy a home or refinance an existing loan, you may see or hear ads with offers of low rates or payments. Whether you see them on the Internet, on television or in the paper, or whether they come by fax or mail, some of these ads look like they’re from your mortgage company or a government agency. Regardless of where you see the ads, remember that while the offers are tempting, some are terribly flawed: they don’t disclose the true terms of the deal as the law requires. Read more
Foreclosure Rescue Scams: Another Potential Stress for Homeowners in Distress
June 13, 2008
The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on the vulnerability of desperate homeowners is equally frightening. Many so-called foreclosure rescue companies or foreclosure assistance firms claim they can help you save your home. Some are brazen enough to offer a money-back guarantee. Unfortunately, once most of these foreclosure fraudsters take your money, they leave you much the worse for wear. Read more
