California Previews NAIC’s End Game for Self-Insurance

In case you had any doubt about the end game the National Association of Insurance Commissioners (NAIC) has in mind for self-insurance nationally, you simply need to look at what is happening on the left coast.

Legislation is now moving through the California State Legislature that would impose new regulations on stop-loss insurance in such a way that would effectively eliminate the ability of companies in that state with 50 or fewer employees from self-insuring their group health plans.  It does this by prohibiting stop-loss carriers from providing coverage with specific attachment points below $95,000 and inserting other regulatory hurdles, including a provision stating that stop-loss insurance cannot discriminate in providing “coverage” to plan participants.

We had heard rumors that Insurance Commissioner Dave Jones was developing proposed legislation with a $40,000 minimum specific attachment point requirement.  That would have been bad enough, but a highly charitable interpretation of such development could conclude that Commissioner Jones’ motive was simply to support common sense health care marketplace regulation.

Such a motive is highly suspect of course, but the fact that he chose to push an attachment point requirement that is more than three times higher than that of any other state is clearly a brush back pitch to the self-insurance industry, to use a baseball analogy.

And Commissioner Jones did not throw this pitch without direction from the dugout.  The NAIC coaching staff likely sent him the signal to bring the heat in order to set the stage for other states to do likewise.  California makes for the perfect stalking horse due to its size and political composition of the Legislature which is generally hostile to the interests of the state’s business community.

We should also note that the word on the street is that Commissioner Jones is using his position as a stepping stone for higher public office and is looking for political fights to burnish his image as a serious player. 

While the weather is generally nice in California, a perfect storm of legislative and regulatory mischief is indeed brewing.   And such a storm could be coming to your state next.

So what’s behind all this focus on self-insurance?  There are two primary influences at play.

First, it cannot be overstated how much is riding politically for the Obama Administration and many others within Democratic Party establishment at both the federal and state level regarding the successful implementation of state health insurance exchanges as mandated by the Affordable Care Act.

As part of this obsession they are trying to stamp out any possible complication and have now latched on to the theory that the growth in the number of smaller self-insured group health plans will create adverse selection in the health care marketplace and therefor will threaten the viability of the exchanges when they come online in 2014, absent the law being overturned by the Supreme Court.

(This blog and other publications have previously addressed why this conclusion is a canard, so we won’t revisit the rebuttal analysis now.)

Armed with this concern, proponents of the ACA have positioned the NAIC to ramp up its efforts to clamp down on the ability of employers to self-insure. 

While industry observers have been fixated on the NAIC ERISA & ACA Work Group over the past year as it has been looking at updating its stop-loss model act - which presumably would bump up attachment point requirements - this blog is starting to think a little misdirection is at work here.

Sure, the NAIC could at some point come out with an updated model act that would not be favorable to the self-insurance industry but this is slow process.  Moreover, keep in mind that these are just suggested laws that each state would need to individually adopt.

It seems more clear that while this model act development process slowly plays out and keeps everyone’s attention, the NAIC, through individual insurance commissioner proxies, will simply “bum rush” the self-insurance industry with legislation like what has been introduced in California.

And just in case these insurance commissioners do not feel sufficiently motivated by NAIC orthodoxy, the health insurance industry is happy to provide the necessary nudge, which is the second factor in play on why self-insurance (via stop-loss insurance) is in the regulatory crosshairs.  It’s no secret that health insurers are concerned about losing market share in the small group market and they are enthusiastically parroting the adverse selection argument to justify new regulation. 

The fact that many insurance commissioners and/or the governors receive political support from the health insurance industry should also not be overlooked when making the circumstantial case that collusion is taking place among very powerful policy-makers and interest groups to restrict the ability of employers to self-insure.

Granted, California’s legislation is targeted at smaller employers, which a small segment of the overall self-insurance /alternative transfer marketplace.  But make no mistake, the end game of the NAIC is too strangle this marketplace in every way it can and limited encroachments left unchecked will likely lead to more existential threats.  Those involved with risk retention groups (RRGs) can certainly attest to this observation.

It’s important to understand this as the industry determines how it intends to position itself so it is not on the receiving end of any more brush-back pitches.

Life Insurance Policies You Can Get in Australia

Life Insurance Quotes

One of the best and easiest ways to provide financial security for yourself and your family is to get insured. If you live in Australia, there are basically 4 types of life insurances you can purchase: life term insurance, which are the most popular insurance policy, universal coverage, whole life coverage and endowment. Not all insurance policies are made equal and with so many insurance agencies, banks and financial institution competing for your money, you have to compare life insurance quotes of different companies before settling for one.

Let's find out about each of the 4 types of life insurance policies that you can buy in Australia.

•    Life Term Insurance: This is how all insurance policies started. This life insurance provides coverage for a fixed period of time for a fixed premium. The fixed period, called the relevant term, can be 10, 15, 20 and 30 years. Your beneficiary will receive the death benefit if you die before the relevant term expires. If you are still living when the insurance expires, you will have two options: either to forgo the coverage or agree to a new one with new terms and conditions. Although this doesn't sound so attractive at first, this is the best selling type of insurance in Australia as you can purchase a considerable amount of death benefit with a relatively small premium.

•    Whole Life Coverage: This is a permanent type of life insurance. It lasts as long as you keep paying the premium or until you die. In this type of life insurance, death benefit to your beneficiary is guaranteed. Most whole life coverage requires you to pay the premium every year until the end of the contract. You will have three options for paying the premium: small premiums each year as long as the policy lasts, larger payments within a few years, or start with lower premium and increase the premium later. Smokers and those with life threatening diseases like heart disease and cancer have a higher risk of dying and thus are usually required to pay larger premiums.

•    Universal Coverage: This is also known as universal health coverage. It is a largely government sponsored healthcare system that provides coverage to all individuals. Most affluent countries around the world provide universal coverage in one form or another. In Australia, universal coverage is called Medicare, which provides medical services at a minimum cost to the insured according an agreed schedule.

•    Endowment: This is a type of insurance which guarantees payment of an agreed lump sum to you or your beneficiary after a specified period, called maturity period, or after you die. Maturity periods are typically of 10, 15 and 20 years. However, you can surrender your endowment policy before your contract expires, but you will not receive the full amount as it depends upon the amount you have paid until that time.

Universal coverage is the only one provided by the federal government; the rest are provided by private insurance companies. You may like one or all of the insurance policies. But you must compare life insurance quotes of different agencies before purchasing any of them so as not to be lured into a bad policy.

The Only Two Certainties in Our Life

Life Insurance Policy

Benjamin Franklin among the founding fathers of the United States along with a signatory to the Declaration of Independence was certainly a genius. Apart from being a politician he seemed to be an inventor and a scientist, a musician as well as an author and earned the title of the 1st American for his strategy to unite the colonies of Great Britain into one separate nation, the United States. But he's most commonly known today for his wise and often quoted line, “Nothing is certain except death and taxes".

This is definitely true for numerous nations within the West. Many nations - the United Kingdom included - have what is now known as Inheritance Tax. A tax levied by the state upon a person’s demise, this tax fairly significantly drives the point of Benjamin Franklin’s quote house. Upon death, the worth of the deceased’s estate - the sum of all his assets, net of all his encumbrances - are assessed by the state and requires the bereaved family members or the heirs to pay the corresponding government tax bill computed from stated assessment. We often find that a person's greatest asset will be the value of the property, the house they reside in. The value of the house will probably be assessed along with a corresponding percentage tax will probably be applied, and also the resulting calculated amount will be paid through the heirs who'll inherit the said home.

Although penalties for non-payment of tax is not exactly the same for all nations, there's a particular commonality in that most of them include serving time in prison and payment of fines. One method to mitigate and strategy for inheritance tax, as well as your personal death, is to take out life insurance for that benefit of one's kids and other beneficiaries. Life insurance could be a far easier way of mitigating any tax liabilities than, for instance, having a good investment portfolio or perhaps a regular saving plan exactly where money is kept aside to pay the government.

When buying a term life insurance, the net worth of the individual is taken into account, and that he also has the choice to extend the word or period of the insurance policy while factoring within the results of inflation on the payout. We all agree that death and taxes are common amongst all of us nevertheless as we do not strategy for death with four examples a life insurance policy, 1 ends up leaving one's kids and other beneficiaries having a fantastic deal of headache. Just imagine the quantity of headache they would need to cope with if they are slapped by having an inheritance government tax bill that is 30% to 40% of your net worth.

This can frequently amount to huge proportion of the value of one's main residence. So your beneficiaries not just need to deal with the reality that you have died and left them, but also the reality that they have to rapidly sell the house that you have left out, with all the memories associated by using it, probably in a far cheaper price compared to what they might have received if they did not need to spend a sudden tax bill. Therefore, it makes far greater sense to strategy ahead with life insurance and lessen any tax circumstances and dues that may fall payable as soon as you die.

How to Find the Perfect Life Insurance Plan

Family Life Insurance Plan

Most people get a bad deal when purchasing an insurance policy because of sheer ignorance about insurance policies. They could avoid being cheated by dishonest insurance firms if they are prepared to spend some time educating themselves. With so much information available freely on the internet, that shouldn't be so difficult, but it seems many of them are plain lazy.  The first and the only thing people go for are cheap insurance quotes, because they want to get away with paying the lowest premium possible without giving much contemplation to their future implications. If they are fortunate, they might actually end up with a great deal. Nonetheless, this is something which rarely happens to most people.

To prevent ending up with an awful deal, the first thing you need to do is to teach yourself the insurance terminology. Here is the list of phrases and words that insurance agents use to baffle you, taking you off guard each time. These terms include life insurance, health insurance, car insurance, coverage, premium, maturity, benefit, annuity, etc. There are in excess of a thousand such words and phrases, and many of them are specific to different types of insurance, such as car insurance. It is not necessary to know all the terms, but if you know the common ones, you will know exactly what you want and what you are getting and unscrupulous insurance agents will not be able to cheat you.

When getting into an insurance policy, it is important to form a clear idea of how much coverage you need. This is the benefit you will be entitled to in case of illness, death, accident, loss, damage or maturity of the policy in exchange for the monthly premium that you are required to pay. If you can afford to pay the premium, go for the highest coverage. People naturally grab the lowest insurance quotes, but being underinsured will turn out to be a bad idea when something bad happens.

Another important thing you should know is that your age, sex, marital status, lifestyle and credit rating make a big difference when determining the total amount of insurance. Older people are expected to die earlier than younger people. Females are considered to be more careful drivers than males. Single people are considered to be less responsible than married people. Smokers are considered riskier than non-smokers. People with bad credit rating are more likely to be reckless and less likely to pay the premium than people with good credit rating. Of course, this is very unfair to them, but insurance companies are there to make profit and not to do charity. What you need to understand is that the riskier you thought to be the more premium you may require to spend the exact same amount of insurance coverage.

When searching for a good deal on insurance, you should do a great deal of exploration. Check out as many insurance quotes as you can. After that, make telephone inquiries and talk to the insurance agents to get the details. Compare the coverage, benefits and quotes of several companies. Researchers have shown that those who are knowledgeable about insurance policies and take out the time to shop around are more likely to get a better deal.

Buying a Life Insurance Quotes

Life Insurance

With the rise in popularity of coupons as of late, another approach to extend that budget is by getting life insurance quotes. You need to take into consideration what best fits the family. Say, if your family is a huge lover of peanut butter, you pay for less Nutella and more PB and J. You don't have for you to decrease your intake since you can save more by accumulating more coupons of your family's most consumed spread.

Same applies to life insurance - if disability is more likely prior to your death, then go look at policies that have permanent disability in their insurance coverage. This way, you can really get more out of what you pay for. By smartly scouting for a lot of possible best offers in the market, a once financial concern can turn into a good verdict. If indeed prevention should be worth more than a cure, then looking at insurance quotes must be a step ahead of developing a financial malady into a long-term cure.

Life insurance quotes are maps of what consists a life insurance policy. It primarily establishes compatibility of insurance policy with the client’s basic information like gender, location, date of birth, physical attributes, potentially dangerous habits such as cigarette smoking and alcohol consumption, together with other consequential information that the insurance provider finds important in planning the content of a policy. A quote is presumed helpful when it consists of services, terms, and conditions that sufficiently justify the amount of money that the beneficiaries will receive based on the sum handed out by the client during the extent of his or her payment.

Then again, we have to consider that the abundance of important information easily obtainable in the Internet is overwhelming. Instead, we must process all the collected information and pick out what fits our conditions. Do we go with better price or better service? Do we need full online accessibility or face-to- face customer service through agents? These are just some of the several inquiries that one may come across when looking for the perfect policy. Through life insurance quotes, we can carefully weigh our options in terms of our beneficiaries' needs today and in the future.

If life insurance in itself is a preparation for the unavoidable, consider think about a life insurance quotes as head starts. They include important information such as well-matched insurers, their company's profile, recommendations, policy and plan information, and even application is just a click away online. After getting through the best sites that provide insurance quotation, you can see that each site also presents tables where various insurance companies based on conditions you have entered are displayed in an easily comparable style. Give your life insurance shopping a start now and head to the nearest Internet search engine to get the top life insurance quote that suits you most.

Vehicle Finance - Vehicle Financing Options For Blacklisted People

Getting Vehicle Finance If You Are Blacklisted or have Judgements

Getting finance for a vehicle is no easy task if you have been unfortunate enough to pick up judgements & you have subsequently been blacklisted.

In fact trying to secure credit through the usual mainstream banks and finance houses will be very difficult if you have been blacklisted - in fact it's safe to say that you probably won't have any success at all.

However what really matters is how many judgements you have listed with the ITC and how many black marks you have against your name.

Obviously the more black marks on your credit record the more you will be seen as a risk by any lending institution.

What You Should Do Before Applying For Car Finance

Before rushing off & submitting your credit applications for car financing all over the place you should first establish exactly where & with which companies you have been blacklisted & whether you are listed as having any judgments against your credit record with the ITC.

So applying for credit at several companies will mean that if you have been blacklisted & have had an application denied recently this information will come up on your credit record which will probably mean that you will be denied straight away.

It is therefore worthwhile checking out your credit rating first & establishing exactly where you stand in terms of judgements & blacklisting so that these can be addressed prior to submitting your application for finance.

So Where Can You Get Vehicle Finance Even If You Are Blacklisted

Whilst you could come across many, seemingly, easy car finance options that could tempt you to sign up for.

It is however necessary to exercise caution when engaging with some lenders who could turn out to be loan sharks who may not be operating within the bounds & regulations of the Credit Act.

You therefore need to be very careful as, while a loan shark could seem to be a short term solution, entering into an agreement with such a lender could ending causing you an unnecessary amount of financial & legal trouble.

If you have the means available to you it would of course be wise to get some legal advice to try & get your name cleared which would put you in a stronger position when negotiating the terms of a credit agreement.

If however, you cannot clear your bad credit rating, all is not lost because you still have other options available.


Article Source: M Morgan Bellinger

How to Find a Cheap Life Insurance

Life Insurance Plan

We are all too aware of the recession and the last thing in mind we could talk about is life insurance. The food on the table and the roof above the family’s heads are without a doubt the fundamental priorities, but should our foresight stop there? Buying life insurance is protecting our future, to make certain that our loved ones will have the means to have those food items on their plates and a house to take them in even after we are gone. There is no need to blow your budget for this.

Thanks to the Net, the most budget-conscious among us cannot neglect his or her own life insurance policy. Putting a premium on one’s life may come cheap if we know where to check. Cheap life insurance is not a knock off of a better brand or a poor substitute of a great deal. It is a well thought out strategy to stretch one’s minimal means to a small fortune, to comfort our family at the regrettable moment of our demise.

Dying may be unstoppable, but our life insurance policy will assure us security after our death. Leading sectarians of insurance agencies plot the projected increase of the money provided by clientele. In turn, they assess the value provided to the heirs at the moment of the client’s death or permanent disability (subject to conditions of the plan availed). The company's services are known as life policies, which are basically contracts where the fine print are laid down, as well as the equivalent monetary value the customer decided to avail. In turn, the customer hands over regular payment or a lump sum required to make the plan available to the heirs under the decided stipulations. After the financial prerequisites are carried out, the client and his or her heirs are now comforted by the idea that the family's financial necessities will be sufficiently provided for later on, as it had been guaranteed by a reliable group. A customer's valued sum of money can be doubled and at the same time, only reached at the event of death or disability -- a system secured by his or her selected life insurance company.

But of course, when a premium is put on top of a person’s existence, the fee to avail such services is certainly nowhere near dirt cheap. The standard sum one has to afford a policy is more or less around $500 annually. Given the difficulty of employment now, $500 is already hard to fit within a person's family or personal budget. Why remove it from your budget when you are able search for cheap life insurance that fits your budget? In depth research and personal analysis could allow us to find the right track towards plans which are surprisingly 30 to 40% lower than the national average. Though the annual financial return could be lower than the average, it could be reimbursed with far more reasonable, if not better, terms and conditions that would benefit your entire family.

Tomorrow is just as important as today. Plan out the benefits you prefer now and assess the money you are willing to spend for a policy. There is no need to scrimp on the future because a cheap life insurance is sold with benefits that money can’t buy - the peace of mind that your loved ones are taken care of even after you are gone.

Car Dealerships in Control?

When you go to buy a car where is the first place you visit? The web? A car dealership forecourt? A newspaper or magazine? The answer to this question doesn't really matter as they all amount to the same thing which is a car dealership who has the cars. There are other places you can buy a car but most people still use car dealers. This is not a bad thing as you are at least going to a place where they know all about cars and if you have any issues you know where to take it back to. But are Car Dealers the best people to talk to about finance?

When we decide we want a new car most people get all excited about the prospect and sometimes rush decisions, but when you are about to purchase the second most expensive item (on average) in a persons life after a house you should definitely think before you jump. Wouldn't you rather be in charge of how much you are borrowing and how much it will cost you?

If you go in to a car showroom it is in the sales persons interest to sell you the most expensive car they can which can make them the most amount of money. There goal is to make you but up to your limit or over it if they can. In that moment of excitement when you can see the car outside shining in the sun that extra £20 per month doesn't seem to bad.

What if you could be in charge instead? What if you planned your own finance and decided your own payments? Then you know exactly how much you will be paying and how much you can pay for a car. This allows you to choose a car and haggle with the dealer if wants a sale. Also you may get cheaper payments as there is no cut going to the car dealer.

There are many ways for you to arrange your own car finance from personal loans companies to your own bank. The other option is to get finance from a car finance broker which means you can get the cheapest quote from a panel of lenders and it will be a hire purchase agreement so you will have the benefits that come with that such as being able to hand back the car after half the payments have been made. Hire Purchase is also easy to obtain than a personal loan as it uses the vehicle as collateral.


Article Source: Tom Skilling

There Is No Need to Give Up Hope Of Driving A New Car Again If You Have A Poor Credit History

We are living in a very fast paced world and it has become very important to get used to it. Every luxury has been provided in an easy way to people. There comes a time when a person would over use those facilities and they would then have to suffer the consequences. A very useful facility that we have all been accustomed to using regularly is the service offered by banks. Banks nowadays deal with almost everything whether it is car financing, house loans, agriculture loans etc. It is for your own good if you stay in the good books of your bank because if not, you might have to face serious consequences such as a poor credit history. You may not be able to obtain loans from other banks also because the user data is available to every bank. In most bad credit cases these were the result of a default on car financing which has lead to a new industry of bad credit car leasing and bad credit car loans.

It was a source of worry in the past if you had a bad credit car loan history because you might have to give up the hope of driving a new car and adjusting to life driving older cars. It meant that because of the financial crises and other problems that people in this situation could never drive a new car again. Nowadays, many companies have emerged that came up with an alternative solution for the people who have a bad credit history. They came up with a way, which will benefit everyone, even the banks. Those with a bad credit history will be offered a loan at a higher interest rate than conventional borrowers.

Some companies who offer these services act as a middleman for those with a poor credit history. The companies will buy the car for them but will register it in the company's name. It also provides a safe situation for them as well because whenever these people fail to provide the lease amount to the bank, the company will confiscate the car from them. These companies can be found on the internet but you have to make sure they are genuine and honest because a number of fraudsters have also been using this technique to offer this service and instead of you getting the car they end up vanishing after the down payment has been made. It is advisable to consult with people who have been already used thee services in the market so that you do not become the victim of this fraud.

These finance companies have acted pretty well and have gained a lot of respect from their customers. It is advisable in the first place to keep a clean record of your bank statement but if for some reason you have not been able to do that and want to get a new car, these finance companies will come in handy.


Article Source: Saleem Gilani

Guide and Facts on Getting a Bad Credit Car Loan

A car loan is often hard to get for people with bad credit. Majority of traditional lenders consider credit score and rating as their primary evaluation criteria. For people with bad record on car loans, loan approval often becomes challenging. Fortunately, there are now lenders accommodating individuals with poor credit history. New lenders now provide bad credit auto loans to give other people the chance to afford a car. If you are considering getting a bad credit car loan, there are several things you have to keep in mind.

Overview

Typically, not good credit loans offer higher interest rates. Because people can apply for it easier compared to traditional loans, the costs can be higher. This type of loan has fewer conditions compared to loans only accepting good credit score and ratings. Re-payment conditions are also different.

Most bad credit auto loans do not allow early payment or other interest hikes in case you are late with payment. For people still recovering from their finances, this may be the best loan option.

Deb Consolidation

If you still have other debts and need to compensate for a car payment, get a bad credit car loan. This makes it easier to track of all your payments. Most of the time, dire credit auto loan providers allow you to pay off different types of debts with one big payment. This means you only have to track one monthly due. You can significantly ease stress if you pay a single loan compared to smaller multiple debts.

Credit Score Improvement

When you have a bad credit car loan, you also have the chance to improve your credit score. Credit score improvement and debt consolidation go together. Most of the time, when you pay off your debts including a car loan using a bad credit grant, you can prevent late payments or missed monthly dues. When you maintain your payments with this type of loan, you can enhance your credit score.

Getting the Loan

Lenders of bad credit loans have different requirements, though, they will ask for collateral. Collateral includes home, car, jewelry and even important documents. If you want lower interest rates and faster loan transaction or approval, put in collateral. Likewise, the lender may need your bank account information including source of income. Most lenders of this loan will not ask for credit history but they need assurance you have a steady source of income to pay for monthly dues. Accomplish an application form; provide your personal information together with bank and employment information. Many lenders approve loans immediately as long as you provide complete information.

Looking for a Lender

There are many ways to find a lender. One of the best ways is through the internet. Most lenders are now online. You can find out about the loan and requirements quickly after checking out their page. You can also check client ratings and feedback through the internet. If you know people who have applied for loans, ask them for recommendations.


Article Source: hMark Spencer Allan

How To Choose The Best Cheap Car Loan From The Available Options

When you want to buy a car, there are several factors to consider and the most important one is the financing. Unless you have ready cash, you will need to apply for a car loan before you can make the purchase.

There are many available loan options and you can find one that suits your needs whether you are buying a new or used car. The loan amount you apply for will depend on the cost of the car you want to buy. There are many options to consider when looking for a loan. You can contact your bank for a personal loan, you can go through a company that specializes in car loans, or you can get the car company or dealership to arrange for financing.

The car financing options available are numerous and can be found virtually everywhere. It is important to compare the car loans carefully in order to find a cheap car loan that is most appropriate for your financial situation.

By comparison shopping among the loan providers, you will be able to make an informed decision. You can decide whether the best option would be to deal with your credit union, your bank or the dealership.

Another financial option that many people may not be aware of is internet lenders. A number of internet sites offer auto financing. When dealing with the online sites, you have to carry out thorough research in order to make sure that you are dealing with reputable financers. Do not give out your financial and personal details online until you have confirmed it is a reputable site.

Today, some car manufacturers have their own lending divisions through which they are offering financing. They offer financing to their customers through their dealerships. Toyota Financial Services and GMAC (General Motors) are examples of this arrangement. A number of online sites offer loan-comparison services. The sites offer calculators that can help you to compare the loans available quickly and efficiently.

The sites are also able to compare the loans, factoring in the annual percentage rate, the term of the loan and other terms including any penalties for early repayment. The calculators are able to evaluate the entire transaction process including any special dealer offers or rebates. By comparing the total amount you will pay for each loan, you can make the best decision.

While the online calculators offer very pertinent information, you should take the research further to determine how good the loan company is. Knowing the best rates can give you options to work with, but you need to ensure that the loan company is reputable. Once you have selected the most viable options, read consumer reviews. The reviews will give you information that you cannot obtain from the car loan company. Many online reviews can give you all the information you need. Some sites have gone further to compile different reviews and have them on one convenient location. You can get details on the company's customer service record, the speed of response, and everything else you can expect from the loan service.


Article Source: Clint A Mckay

Finance a Car, Get a Home Loan, or Secure Small Business Funding - Welcome to the Bank of China

Many people complain that it is too hard to get a loan these days. Further, I would submit to you that as the Frank-Dobbs Law gets going, and more regulations in the banking sector come into play, we will see less borrowing and fewer loans, not more. Is there a solution?

Without financing it makes things tough for small businesses to get funding, and for startups to get going. It makes it difficult for people to buy a car, or buy a home - meaning there will be fewer autoworkers, and fewer people working in construction, as no one can afford to buy those automobiles or a personal residence.

Now then, here is something out of the blue; it appears that Chinese Banks are coming into the US and being approved by the Federal Reserve, but one has to ask if China's banks are legitimate, well-funded, and if so, by whose standards I ask?

There was an interesting article on this in the Wall Street Journal titled; "Chinese Banks Get Nod In US," by Jon Hilsenrath, Robin Sidel, and Lingling Wei on May 10, 2012. The article stated that; "The FED effectively is giving its seal of approval to China's banking regulation."

One bank mentioned was ICBC which is actually 70% owned by the government.

Okay so, let me get this straight. A nation which has been playing us in trade negotiations, manipulating its currency, and giving false financial data now has a good chunk of our money, and holds a large portion of our nation's debt - still, we wish to trust them in our consumer lending markets. China now has so much money due to the imbalance in trade deficits, and economic shenanigans that today the Chinese are looking for a place to put their money to work, as China's growth is slowing down or so it seems, so they want to lend money to the US consumer.

On one hand our government is making it so hard to be in the banking business that our own banks cannot survive. And since they cannot survive and thrive, and therefore are not making loans, we are going to let China come in to lend money to consumers, who will then have the money to buy more goods, albeit probably Chinese goods, or homes constructed in the US, but made with building materials coming from China.

The banking community is not opposed to this because they also want China to open up their markets, and their consumers for US Multi-National banks. What we have now is more intermingling of financial resources to the point that we will be acting, financially speaking that is, as one economy, not two. Is this a global economic conspiracy, no, but if you look behind the scenes, you can understand why various groups are pushing for this.

Will you buy a Chinese car, built in China, and take out a loan from a Chinese bank with a local office around the corner from where you live? You just might in the future. Indeed I hope you will please consider all this and think on it.


Article Source: Lance Winslow

How Does a Novated Lease Help Me With Discounts and GST?

When the Howard Government introduced Goods and Services Tax back in 2000 Australians from Perth to Hobart and everywhere in between let out a collective groan. Nobody likes paying more for the same and equally nobody enjoys paying more tax. So what has this got to do with Novated Leasing? Simply put Novated Leasing is your shield to avoid any unnecessary GST payments on the purchase and maintenance of your new or second hand vehicle. The minimisation of GST is one of the most important elements of Novated Leasing and knowing how it operates can help you maximise your savings.

The vehicle purchase price

As well as saving with fleet discounts Novated Lease customers can also save GST on the purchase price of their vehicle. This saving is significant especially on new vehicles as the price always includes extras and additions.

Ordinary finance agreements do not cover this GST saving. Adding this GST saving to bulk and fleet related purchase discounts takes a lot of the sting out of new car prices.

Fuel purchases

Saving with discounts on fuel purchases is like the gift that keeps on giving. These savings can be made where your Novated Lease provider is also a Fleet Management provider. In these cases standing agreements with fuel providers can bring discounts on fuel prices so it's important to ask about this from the outset. Continually saving in this area can mean that fuel cost rises are less painful and fuel efficient vehicles are even more cost effective. In this sense diesel, petrol and LPG vehicles should see a real saving.

Servicing, parts and labour

Like purchase price GST can also be saved on servicing, parts and labour costs. This is again significant as it means that you pay less for these services than would otherwise be the case. While fuel and purchase price can see good discounts as a result of bulk buying these discounts are smaller in comparison to the discounts which can be achieved by a bulk buying fleet management company for servicing, parts and labour.

Final thoughts

Making savings in any area is highly satisfying. While this is true of almost all situations it is especially true for saving money on tax. Thinking ahead and planning with a Novated Lease means that you can avoid GST on a large range of transactions. Yes, Novated Lease holders need to be aware that they need to pay Fringe Benefit Tax (FBT) however this charge is not as significant as the savings which can be made. Discounts and GST free transactions work for everyone involved and they can make the difference between a little spare cash and a lot.


Article Source: Jack Haymaker

Own a Car of Your Choice With Bank Loans

Loans offer an opportunity for everyone eligible to buy the dream car. With the increasing demand of cars in the market, a car loan is an ideal way to buy a vehicle of your choice without draining your personal financial resources.

While visiting the nearest car retailer, you saw a car of your dreams. Now, all you want is to buy the vehicle and drive it away to your parkway. But, what about the money which you need for a vehicle of your choice? If that is the question which is haunting you then visit the nearest bank which offers loans for people like you. But before you avail a loan for yourself, always check with the banks about the loan rates and compare it online with competitive banks. Online car loans study helps in zeroing a deal which is favorable for you and makes sure you do not pay more than you have to.

General Features

Check the following features which will allow you to understand the different aspects associated with car loans.

• Loan amount covers 90 percent of the cost if the car is new. But if it is a used car then the amount provided is 80 percent.

• For salaried employees, the amount provided is 3 times the annual salary but the rate increases for self-employed professionals and stands at 6 times the annual income.

• Apply for a loan from a bank where you have a bank account, most banks prefer such customers.

• There is a fixed time period and the premiums are decided accordingly. But in case you want to settle it before the closing date, you need to pay a penalty.

• Rate of interest differs from bank to bank, hence check and compare it before applying with any bank.

Eligibility Criterion

Before you apply for a loan with a bank, check if you are eligible or not. Banks have a set of conditions which need to be fulfilled by the applicant. Though these might differ from bank to bank in India, here are some general criteria which are applicable for all bank loans:

• The applicant must be 21 years of age and more.

• The loan applicant must not cross 58 years when the loan matures.

• He or she must be employed for minimum one year in the current job.

• Most Indian banks do not give a loan amount without checking the annual net income which must be INR 100,000.

When applying for loans, the applicant must submit documents proving their eligibility. The list of mandatory documents include an Identity proof which can either be a Passport, PAN card, Voters Card or a Driving License. You also need to submit an Income proof which includes salary slips and Form 16 for employed individuals. But if you are self-employed or own a business the IT returns foe two financial years is required. Other than this, an address proof is mandatory. You can submit any government document which has your present address inscribed such as Ration Card, Driving License, Voter ID card, Passport, Telephone Bill, and Electricity Bill. Lastly, a bank statement for the last six months needs to be submitted. This has to be submitted even if this is the bank where you have a bank account.


Article Source: Abitha Deepak

Need Money For College? Consider a Car Title Loan

Let's face it - getting a college education is expensive for many people. While it would be nice if everyone could hit the lottery and pay for it easily, that's not how the world works.

According to the National Center for Education Statistics, the average annual cost of tuition, room and board for a college student is $17,633. If you are a full-time college student, you probably don't earn that much in an entire year. You probably have several other expenses to cover, as well, which may make it tough to keep yourself in school.

To make matters worse, you probably have little to no credit if you are in college. This could make obtaining a traditional loan difficult or even impossible. Even with grants and education loans, it may be tough to make ends meet.

What options do you have?

Consider a Car Title Loan

You may have heard of car title loans on television. They are also called u-drive loans, pink slip loans or title loans. The commercials may be funny, but a title loan can help you get through a serious financial matter.

A title loan is a loan that is given based on the value of your vehicle. Even though you are in college and may not have a lot of money, you may own a vehicle. If this is the case, you may be able to get a loan based on it.

How it Works

To obtain a title loan, you can take your vehicle's title and a few other relevant documents and items to a car title lender. The lender will assess your vehicle's value and may offer a loan based on it. Some lenders will offer up to 50 percent of the value.

Car title lenders often offer loans without running a credit check. This is key, as your credit history won't be of concern in many cases.

Also, note that car title loans are usually processed much more quickly than traditional loans. Car title loans are typically processed on the same day that they are applied for, meaning that you could walk out with cash in a relatively short timeframe. This could be important when it comes time to purchase books or to pay an urgent tuition bill.

You'll typically have to provide some minimal income verification. This may include a pay stub from a part-time job or another verifiable source of income.

How Will I Get Around?

Most car title lenders require the borrower to hand over the title, not the vehicle. This means that you'll probably hold on to your vehicle for the duration of the loan.

In this case, the only way that your vehicle will leave your possession is if you do not repay the loan properly. This happens 4 to 8 percent of the time, so the odds are very high that you'll avoid this situation. Still, it is important to borrow just enough to cover your expenses and make sure that you can pay it back on time.

Conclusion

College education may be overpriced these days, but it is a reality that you'll have to deal with if you hope to get a college degree. With this in mind, consider a car title loan as one of your borrowing options, especially if traditional lenders have shunned you.


Article Source: Clay Wyatt

Use These Important Tips To Find A Good Car Lease When You Have A Bad Credit History

Leasing a car is often difficult for those who have a low credit score, especially because the traditional banking institutions and car financing companies do not like to take unnecessary chances with consumers who are deemed not credit worthy. Although these decisions may present major hurdles for the person that wants to lease a car, it does not have to stop them from getting the car lease that they need or want. Fortunately, there are other options for leasing a car with bad credit available. Before trying to lease a car, however, there are some of the things that all consumers should know. Some of these main things include limiting the amount of searches on the credit history, researching your non-status car leasing status options, and developing a plan of attack,

Limit Credit History Searches

One of the biggest mistakes any car buyer can make is to allow multiple finance representatives to run a credit check each time they go to a car lot. Unfortunately, many potential car buyers (especially the young) will allow the car salesperson to talk them into running a credit check even when it is not necessary. Many times a sales person is only trying to determine is if the consumer has the ability to buy a car. Therefore, it is important for the car buyer to know when and when not to allow the finance area to check their credit history. As a rule of thumb, the credit check should only be run when the buyer has picked out the car and they are ready buy. Otherwise, the salesperson should be instructed to wait until such time.

Research Non-status Car Leasing and Car Leasing Bad Credit Options

With this being said, the first step in the leasing process is to research available options. Finding the right options is essential to securing the lease. Therefore, when the person knows their credit is bad in advance, they can rule out the traditional banking and car financing agencies. After they have been eliminated, the buyer should make a list of the agencies that are well-known for lending money to consumers who have low credit scores. Some of these lenders are known as subprime auto lenders. These lenders are normally eager to loan the money to those who meet their qualifications. However, the buyer must beware of high interest rates and other tactics used to promote expensive car leases. For example, when an auto subprime lender is approving the loan amount, the buyer should always check the interest rate. With a bad credit rating, the interest rate is normally higher than the traditional banking institutions. Therefore, the person who is leasing the car will need to ensure the agency is not involved in predatory lending practices.

Develop a Plan of Attack

Another recommendation when choosing the best option is to develop a plan of attack. This plan of attack should include getting a pre-approval before approaching the salesman on the lot. The pre-approval will give the buyer the upper hand in choosing a car. For example, if they prefer taking over someone else's lease because it is a less expensive option, the buyer will have the right to choose.



Article Source: Jabir llah Niazi