Do you need Auto Insurance?

The answer is definitely YES. If you want to drive, you must have auto insurance cover for your own financial protection. Purchasing a car is one of the biggest investments in our life. As your home insurance provides protection from natural or unwanted calamities, similarly auto insurance will protect you against the financial loss that you may face due to accidents or any other devastating surprises.


Auto insurance is basically a smart financial planning. It's a safeguard to the investment you have made in buying a car. You may think that you are an excellent driver and will never face an accident, so what's the need? But remember you don't know how many bad drivers are out there on the road. So there always remain some possibilities of accidents while driving. It's always wise to be on the safe side.

Also, in almost every state, there exists a law which requires a driver to carry a certain amount of insurance. This is done to check that you have sufficient money to pay for any damage caused to or by your car.

Not only accidents, there are many more possible scenarios that you may face. For example, damage caused due to weather conditions like hail storm or flood, your car have been stolen or vandalized, and so on. You cannot predict such elements. The financial loss can be tremendous during such times. It becomes really difficult to pay for them if you do not have auto insurance.


So please don't ignore auto insurance, it's one of the vital firewall against economic disaster caused by an accident. There are various types of auto insurances available. Choose the policy that suits best for you, according to your requirements and financial condition.

The "what-ifs" possibilities can be out of your driving life with an auto insurance.

Mortgage loan with bad credit

Many of us have the notion that one cannot afford to get a mortgage loan with bad credit. This is actually not true. Even if you have gone through foreclosure or have filed bankruptcy, you can certainly buy a home with bad credit. Of course the interest rates will be much higher and you got to do a lot of research, but the most important thing is that even with bad credit, you can get qualified for home mortgage loan.

Nowadays, there are a number of companies and lenders out there offering home loans to people with bad credit. This is because, in recent times, bad credit home mortgage has become a good market to be in. Here is a video for you that will help you to know about some bad credit mortgage tips.



I have listed here some of the points that you need to know and do a little bit of research on while applying for the loan:

1. Loan type
2. Interest rates
3. Loan fees
4. Shop around properly


So do not think that bad credit will prevent you from fulfilling your dream of owing a home. The challenging experience will bare a sweet fruit at the end.

Debt into Wealth: Is it Possible?

Nobody wants to lead a debt burden life. But unfortunately due to certain circumstances many of us fall into debt at some time in our lives. However getting rid of debt is not an easy task, but you can certainly try to go on a debt diet and start transforming those debts into wealth. All you need is discipline and foresight.

It is actually possible to convert debt into wealth by following few simple steps.

The first and the foremost step that you need to take is to make a total evaluation of your entire debt. This is the thing that most of us neglect, due which it gets piled up as time goes by.

The next thing that is required is to make a list of all your expenditures, when you are trying to get rid of debt. Though this sounds quite cumbersome, once you do it for say a couple of weeks, you will get an idea about your spending.

Lastly, you have to plan a budget for yourself and follow it strictly.

Get to know more about transforming debt into wealth from a registered financial consultant in this video.

Nothing can be achieved without perseverance. However tough it might look now, it is possible to transform your debt into wealth if you are consistent in following the steps and regain your financial status.

Good luck!

High hopes from Obama's Home Loan Modification Program:

President Obama announced the details of the new home loan modification program around a couple of months ago which showed a lot of hopes and potential. The plan is designed so as to help around 9 million homeowners modify or refinance their existing mortgage loan program. This program, named "$75 billion Homeowner Affordability and Stability Plan", induced high hopes amongst the numerous homeowners. Particularly those homeowners, who were about to lose their homes to foreclosure, could actually breathe a sigh of relief. Thanks to Mr.Barrack Obama.

With this program, loan modification has become much more attainable and real hope is finally here. The plan aims at reaching out to 3 to 4 million households in US who are in need between 2009 and December 2012. This plan was designed as a consequence of the rapidly increasing number of Americans unable to pay their mortgage payments. However there are many requirements that has to be fulfilled to be eligible for the program.

The following are some of the general guidelines:

1. The home must be your primary residence.
2. You must able to show proof of your income.
3. Your monthly payment must be more than around 38% of your gross monthly income.
4. This program is not available on second mortgage.
5. Your current mortgage was originated before Jan 01,2009.
   

If you can fulfill the needed requirements and prove your financial hardship, you can qualify for the program. Lenders are also happy to accept the plan due to fact that homeowners are really in hardship. Moreover, for a successful modification program, they can get around $1,000 each year for 3 years.

So all in all, this is a standardized program for both the homeowners as well as the lenders. Also there is no negotiation problem involved, either you qualify or you don't. You can save thousands by following some simple steps.

US Jobless data affecting economy:

According to the recent update, number of late payments of home equity loans has increased tremendously in US, in the last quarter of the year 2008. The main reason being the rising number of job losses. It proved to be a severe shock for the economy, and thus deepening the effect of recession on the borrowers.

Statistics have shown that the number of jobless claims filed in the US unexpectedly rose to a record breaking 8.1% in February, the highest since May 1983. This is avoiding the consumers from keeping up with the loan payments. Even more, economists are also forecasting that the unemployment rate may increase to 8.5%. All these are leading to the rise of loan delinquencies.

The graph below shows the number of Americans receiving jobless claims and also the recession period in this duration.



If we go with the figures by the Labor Department, as released on Thursday morning, the number of new claims for jobless benefits for the last week rose to 669,000 from previous week's 657,000. Together with that, those who were already receiving benefits hit a 10th straight record-high.

US economy has shed millions of jobs and is still continuing to do so to reduce the headcounts in numerous firms such that costs are lowered. This in turn is affecting the home owners, who are unable to pay their monthly loan amount.

The jobless data has been one of the most important that is affecting the economy and further pushing economy in recession. Though there is a glimpse of improvement, but nothing can be said now. Let's hope the financial condition improves fast as the time goes by.