Interest Only:Home Mortgage

Interest only home mortgages can be considered among most trustworthy lending offers that put forward many options to buyer requirements. This financing pact requires monthly fees of the interest other than the principal sum. This does not signify that a property holder never pays the standard, but interest only mortgage offers a phase of time contained by the provisions when the proprietor is requisite to compensate the monthly fixed interest.

Other Options are Also Available

This special financing choice is also one of the several home mortgage types offered to clients who have a range of personal, financial requirements when buying a house. There is a variety of financing offered with changeable monthly fee terms, interest tariff and pay off period. You can easily search for many options available in your surroundings through the internet. Another option is you can give an ad in the newspapers about your need and in no time several real estate agents will be at your door steps.

Don’t Need Large Capital to Start

This type of interest mortgage attracts a number of clients who have specific reasons for selecting an arrangement demanding payments of only funding charges for a particular amount of period. It is not considered a sensible step for most clients to select them because the standard is not given for even long periods of years, so it is not a good choice.

Good for Real Estate Agents

Such mortgages that are considered for five years or less time period propose impartiality loss if the buyer does not reside in the home for long. For real estate traders who are purchasing homes so that they can get quick yield with a premature resale, such loans are ideal trade tools.

In some cases people only want a house for a short period, so in this case these agents earn a lot because these plans are more suitable for those who want to reside for a long period.

Don’t Opt for Small Periods

However, for clients who have specific reasons for selecting an interest only mortgage, this selection can be very appropriate for their circumstances. If a proprietor only needs to inhabit the purchased residence for only some months or some years, it may be significant to select such a choice because of the small, monthly expenses. For many proprietors this is a feasible choice because of several reasons, but this is not the only option available for a person wishing to buy his own home.

Good for Expected Income Increase in Future

For people who are not having good income at the moment and expect it to rise in the coming years, it’s a best option because when the principal amount will start coming in it will be easy for him to pay the installments. For the right buyer, this kind of loan can be a huge deal too. It is the best option to start with small capital and you also get some time to increase your income so that till the time your interest only period finishes you are in a position to pay big payments.

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Credit Cards the Future?

Is cash a dying dinosaur in the wake of the swing to more and more of us turning to the use of plastic – credit cards?

With the introduction of the new Chip and Pin credit card system, though initially brought in to fight the ever-rising cost of card fraud, which incidentally cost in the region of £4.3 billion in 2003 alone, with an out look of rising to £1 billion, something had to be done to stem the tide. Is now being heralded in some quarters as the beginning of the end of everyday money.

With the added security that it brings, it is believed that more people who don’t currently own a credit card will now take one in the knowledge that they can be a more secure way of dealing with our cash. Though it wont cut out the credit card not present fraud that is steadily on the rise, and becoming much more of a menace as more people turn to using the Internet for example, to purchase goods.

Don’t rule out the use of cash just yet though, as it’s better to purchase smaller items like a newspaper, bread or even a pint of milk, that you can’t currently do with a card. And cash is still the main form of paying by consumers according to The Association of Payment Clearing Services, who report that 76% of payments are still made this way, leaving cash at the top of the pile of importance, in the way that we do our dealings.

But with the expected up turn in the way that cards are to be seen in the near future, the APCS expect the number of us to pay this way is going to dwindle to around the 62% mark by the year 2009, as we get used to the idea of a thin piece of plastic in our pockets, replacing bulges caused by a load of loose change.

The Chip and Pin method of payment as well the added security that it brings, will also lead to other methods and uses for the chip that holds all the information that is required on your card, such as an electronic purse that will enable you to buy the everyday items that we take for granted.

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So is the Jurassic age going to be swamped by the New Age Chip? Well it’s going to be a battle, as the difference in punching power right now is very much in the favour of cash, with 25 billion transactions a year to the credit cards 3.4 billion, though it’s a fight that with the introduction of Chip and Pin credit cards, will start to address the balance of power.


Why to Use a Prepaid Debit Card Instead of a Credit Card?

During the 1990′s due to the great losses credit card companies had to look at different ways of securing their debts. At that time they found a new way of secured credit card and following close behind came the prepaid debit card. Prepaid debit cards are now issued by most credit card companies, such as Visa, American Express and MasterCard.

The functional procedure of this card is that funds are added to a prepaid debit card at a retail location or through an online bank. This card works almost similar to a prepaid phone card. Actually, a prepaid debit card is cash that has been applied to a plastic card, this is done so that the funds can be accessed electronically. A limit is assigned to this card that is identical to the amount deposited for that card. Each time you use the card, the amount on the prepaid debit card reduces until the funds become zero.

Prepaid cards contain a wide range of benefits. They are very much safer for consumers to carry than cash and they can be used in all countries of the world, it depends from which company you chose to obtain a prepaid debit card. MasterCard, American Express, Visa all offer these cards, as do some banks.

There are other benefits also like you don’t have to worry about a monthly credit card bill or debt. Any person who reaches the age of eighteen can carry a prepaid debit card, their credit history doesn’t matter.

Even those are eligible to access a prepaid debit card that has extremely poor credit because they must have to have funds before the card is issued.

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Another advantage of prepaid debit cards is that they can easily be re-loaded by phone or online as long as there are funds available. This allows the user to have easy access to electronic funds when on vacation and during business travel. Nowadays many companies prefer to use prepaid debit cards in place of expense accounts or company credit cards.

It is due to the reason that with any other type of card the fees can be astronomical. The card companies charge fees for getting the card, reloading it, for going over the limit, cashing out the card and canceling it if you should decide to do so. So those cards having the lesser fees are the best to use, so search around to see which companies are offering the best deals so that you may get the cards with lowest fees.

The average cost for reloading a prepaid debit card is around $5.00, so be sure that you have added enough funds to cut down on repeat re-loading.

You can access funds from prepaid debit cards only with your PIN number. Make sure that you change it often and never disclose your PIN number to anyone. The best way is that if you have your bank or the company where you obtain the card to put a daily maximum on it in case your card is ever stolen or in the rare instance that someone is able to obtain your PIN number.

The most important thing to take under consideration is that the advantages of prepaid debit cards far outweigh the disadvantages; they are good for everyone, especially for those who cannot fulfill the criteria to obtain credit cards due to their poor credit history. But don’t forget one thing that prepaid debit cards also have to be used responsibly, just as any other card. You can easily load them time after time until your bank funds are reduced to none. Make it sure that you are keeping the records of your purchases to prevent this type of catastrophe.