Posts made in January, 2015

Three Great Uses For A Home Equity Loan

With the current economic situation, many homeowners are turning to home equity loans to get out of debt and pay for necessary expenses. One of the great things about a home equity loan is that the money is yours to spend however you see fit. You do not need to inform the lender what you want the money for. While you can use the money for whatever you like, remember that you must pay back the entire loan plus interest so spending it wisely is important. There are three great uses for a home equity loan including home repairs, college tuition, and paying off debt.

Home Repairs

What good is your house if it is falling apart? If you are looking at costly repairs to your home and have enough equity to cover the repairs, a home equity loan may be the perfect solution. Before you take out the loan, you should get a number of estimates on the repairs that need to be made. This will allow you to borrow only what you need rather than the full amount of equity in your home. The reason that home improvements are a great use for your home equity loan is because they will add more value and equity to your home upon completion.

It is important to only make improvements that increase the fair-market value of your home. This is especially true if you are remodeling in an attempt to sell your home. Keep in mind that your sale price must be enough to cover both your mortgage and the equity loans you have taken out.

College Tuition

If you have looked at the rising cost of college and wonder how you will ever be able to send your kids to college, there is a solution. Many families apply for grants and scholarships to help cover the cost of a college education. This is a great option but in some cases, families make too much money to qualify for grants or the amount of tuition exceeds the amount of the grant. This will leave you with two options, a costly student loan or a home equity loan.

Consolidate Debts

If you are like millions of Americans, you likely owe thousands in debt to a variety of different lenders. Many people have at least two or three credit cards that they use on a daily basis. Each card carries its own fees and interest rates. A home equity loan can help you pay off your miscellaneous debts in a more efficient manner. You will use the equity loan amount to pay each of your creditors and then make one monthly payment toward your equity loan until it is paid off.

Talk to places like Union State Bank for more information.

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How To Find The Best Tax Preparation Service

Nobody wants to leave cash on the table, especially when that money comes from your hard-earned paycheck. Yet millions of people get smaller tax refunds that they should, or the even pay tax when they actually qualify for a refund. You need to find the best tax preparation service.

Accountants

There is a big difference in the qualifications of the people that prepare your taxes. Accountants are at the top of the spectrum. They have spent at least 4 years studying tax law, passed a rigorous examination to become certified public accountants, and equally important, they will represent you at an IRS audit to defend the tax return.

Accountants have another bonus that is not available to the general public. They have highly sophisticated computer programs that scan tax returns for the lesser known deductions. Congress changes the rules almost every year but professional accounting software keeps up with the latest developments.

Attorneys

Sometimes attorneys, especially those with specialties in tax law, prepare their clients’ tax returns. While they might not have the accounting expertise to tell business owners if their books have errors or omissions, they can use the figures you provide to prepare a return. Moreover, they will advise you whether to submit documentation when making an unusual claim. It can help to prevent an exhaustive audit.

Some individuals have complicated financial circumstances and prefer the advice of an attorney when claiming income and deductions. For example, you might have worked outside of the country for part of the year and paid tax to another government. Or you might have assets in several countries, each with different tax laws. A tax lawyer can sort through the paperwork and prepare your return. The IRS allows attorneys to represent you during an audit.

Unlicensed Employee

Thousands of people earn extra money during tax season by moonlighting as unlicensed employees of a tax preparation service. They attend classes, usually the previous autumn, to learn the basics of preparing different kinds of tax returns. They do not study tax law or have any accounting training, but they can provide a valuable service to cash-strapped individuals.

If your income is only from wages, pensions, or interest, then you would most likely file one or two schedules, if any, with Form 1040. Most people fall into this category. If you haven’t done any unusual transactions during the year, then you will save money by having an unlicensed person prepare your return. Unfortunately, unlicensed tax preparers are not permitted to represent you at an IRS audit. If they make an error on your return, you are responsible for the unpaid tax, penalties, and interest.

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Want To Improve Your Credit Score? Try A Payday Loan

There is a lot of confusion about taking out a payday loan. While it is true that you can get caught up in a cycle of debt with them, that can happen with any type of revolving credit. The important thing with any type of credit is to use it wisely and never take out more than you can comfortably pay back when it is due. If you have had a bit of trouble in the past and need to find a way to improve your credit score, a payday advance loan can be just the answer. Here are a few ways they help you:

Reporting to the Credit Companies

Though not all payday loans report to the big credit reporting agencies, some of them do. Look for a loan company that does report to the agencies and take out a small loan. You do not even need to wait until it is due to pay it back, just wait a few days and then go and pay it off. In a month, check to see how it affected your score. You can then do it again if you still need to improve your credit rating.

Stay Current on Credit Cards

Paying your credit cards on time is a sure way to improve your credit score. If you have a bill that is due before you will be paid, take out a payday loan and make the payment on time. As soon as you do get paid, make sure you pay off the loan. While it will cost you a bit of money in interest, the fact that you are keeping a good credit rating will prove to be important over time.

Maintaining Good Relations with Your Landlord

Many people do not realize that when you are late on your rent payments, it can be reported to the credit bureaus. This will not only lower your rating, but can keep you from being able to rent a house in the future. In many cases, the late fees you would pay to the landlord will not be as much as the interest rate on a payday loan. Of course, if the loan interest is more, it will still be beneficial to spend a bit extra to keep a good relationship with the homeowner.

Do not be put off by any bad propaganda about payday loans. Do your own research and find out which company can serve your needs best. Make sure you understand the terms of the loan and pay it back with your next paycheck. They are called payday loans for a reason. When used properly they can be a big help to you financially.

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