We have helpful finance management advice on debt, loans and credit cards

A new menu-based online Life Assurance plan has been set up by ProProtect. To reduce costs, some features of the PruProtect plan are not available with the essentials plan.

To help you in conducting a life assurance comparison exercise, the essentials plan comprises core serious illness cover and level, decreasing or index-linked life cover, unemployment cover and income protection.

These include automatic child serious-illness cover, a guaranteed insurability option for life cover, serious-illness cover and disability cover, optional serious-illness cover for children and immediate cover. However, policyholders can upgrade to the full PruProtect cover at any time.

The essentials plan takes the same severity-based approach to cover as the PruProtect plan so that people are covered for serious illnesses and partial disabilities, not just critical conditions.

The severity-based nature of the plan means that policyholders may get a percentage of the benefit rather than the full cost. This means that payments can be made at an earlier stage of the illness, even if it is not life-threatening.

Essentials provides a great deal of flexibility in that policy holders have a choice on many aspects of their cover such as guaranteed or reviewable premiums, single or joint life, whole life or fixed term and waiver of premium on death, serious illness or capacity.

However, the products could seem complicated due to its flexibility and wide range of options.

A new menu-based online Life Assurance plan has been set up by ProProtect.  To reduce costs, some features of the PruProtect plan are not available with the essentials plan.

To help you in conducting a life assurance comparison exercise, the essentials plan comprises core serious illness cover and level, decreasing or index-linked life cover, unemployment cover and income protection.

These include automatic child serious-illness cover, a guaranteed insurability option for life cover, serious-illness cover and disability cover, optional serious-illness cover for children and immediate cover.  However, policyholders can upgrade to the full PruProtect cover at any time.

The essentials plan takes the same severity-based approach to cover as the PruProtect plan so that people are covered for serious illnesses and partial disabilities, not just critical conditions.

The severity-based nature of the plan means that policyholders may get a percentage of the benefit rather than the full cost.  This means that payments can be made at an earlier stage of the illness, even if it is not life-threatening.

Essentials provides a great deal of flexibility in that policy holders have a choice on many aspects of their cover such as guaranteed or reviewable premiums, single or joint life, whole life or fixed term and waiver of premium on death, serious illness or capacity.

However, the products could seem complicated due to its flexibility and wide range of options.

A new credit card can be used to help you eliminate some of that debt that you have from other credit cards, and other sources of debt, too. As long as you are able to get another credit card, then you have a great tool available to reduce your monthly payments rather quickly. Here is how you can do it with a new credit card.

Look For 0% APR Interest

Here is one option that can really help you to cut down on the amount of interest that you pay each month on your credit cards. Get a credit card that has 0% APR interest, and make sure that this benefit will last for at least one year. Some cards will only give you as little as three months on this, and others will give you up to 15 months. By putting your credit card debt on the new card, you can literally reduce your interest payments to zero – as long as the introductory offer of 0% stays in effect.

Balance Transfers

This is the feature that allows you to take the debt from one credit card and put it on another. Watch out for a card that has balance transfer fees attached to it, especially if you are trying to reduce your debt – you don’t need another 3 or 4% interest charged for the transfer. It is common for a credit card to have balance transfer fees, but also, many do not have it. In addition, some credit cards will charge a specific amount of interest on balance transfers, but not on other purchases during the introductory offer period. You should know, though, that when you get your new card, you may need to list all transfers that you are wanting to put on it, and that you may not be able to transfer anything else to it. Find a credit card that will give you more flexibility.

Make Big Payments

A credit card, apart from adding a little convenience to your life by making it so you do not have to carry cash, is a great tool. But if you pay a regular late fee, plus high interest each month – it becomes more of a great inconvenience, rather than the help it should be. It will help if you can reduce your debt as much as possible by making as large a payment each month as possible. By having the 0% APR interest rate, you should be able to make larger payments and reduce the principal amount rather quickly – as long as you pay on time.

No New Purchases

Consolidating your credit card debt can really profit you once you get it down to where you can pay off each month’s transactions – each month. While this goal may be down the road for some, still, it is a goal that all should seek after. This means cutting down on your extra purchases that you really do not need until your credit cards are manageable in the way they should be used. Instead of looking at the card as a “buy all you can and max out the card as quickly as you can” approach, look at it simply as a way to handle finances better.

Rebates And Rewards

In order to save even more money, you will want to purchase your regular things, like gasoline, prescriptions, and food on the card, too. With some credit cards, you have the opportunity to save anywhere from 1% to 3%, and you receive it as a rebate or a reward – money subtracted from what you owe, each month.

Some of these options are only good if you learn to say “No” to unnecessary purchases. These credit card tips will help you consolidate your debt from other credit cards if you pay off the debt each month, and pay all that you can to get the debt down to a more comfortable level – and then you can start saving for those other things you want.

When you are thinking about taking out a loan, you need to think about which kind of a loan. There are basically two types you can choose from: secured and unsecured. Secured loans require a form of security to guarantee the loan. This is commonly your house, which makes secured loans only really suitable for homeowners. But all secured loans are not equal. You need to carefully compare secured loans that you find on offer to get the best deal you possibly can.

Secured loans have the big advantage of having lower interest rates than unsecured ones. The downside, or potential downside, is that your home can be put at risk if you default on the repayments. For this reason you should always compare secured loans and choose one that also offers some form of payment protection insurance.

This kind of insurance can be purchased separately, but may be offered as part of the package. However, this is another situation where you can shop around and get the best deal you can. Payment protection insurance is sometimes known as accident, sickness and unemployment insurance, which refer to the three main situations that you may face that could prevent you from repaying your loan. This is why it is vital that you have some kind of protective insurance cover in place to allow for the worst event possibly happening.

With any type of loan, and a secured loan is no exception, the main element you should look carefully at is the interest rate. Depending on who is offering you the secured loan, you will find that the interest rate will vary, sometimes quite substantially so. You can, of course, do this work by yourself, or you can obtain the services of a broker to do it for you.

A broker will search all the companies offering loans and compare secured loans on your behalf. You will usually then be presented with the most favorable option. This should be the one that offer you the best interest rate and repayment conditions. You should look for flexibility here. The more flexible the conditions are the better.

For example, although you will agree to repay the loan over a set time period, suppose you suddenly and unexpectedly find yourself with a lot of money to hand. You may have had a lottery win, or inherited from a wealthy relative. While the details are not important, you may in this hypothetical situation wish to pay off your loan earlier than originally agreed. If you then discover that there are penalties in place for early repayment, it will make sense to continue paying off the loan at the agreed rate.

However, if when you compare secured loans you also seek out the offers that have flexibility built into early repayment, you would be able to pay off the loan at a time that suits your financial situation without penalty, and you would thereby save some money by not paying continued interest rates.

It is important that you carefully compare secured loans to find the best one for you. They are not all equal, though they are fairly similar in nature. Shopping around while being fully aware of the pros and cons is wise, especially as you are dealing with your hard earned money.

Not so long ago if you wanted to take out a loan you had little chance to compare loans, and little choice about where you borrowed. It was either the high street bank, or a building society or friendly society. And the amount you borrowed was severely restricted too. You were mostly relying on the generosity of the bank manager and hoping that your credit record was good enough. If not, then too bad – no loan for you.

Today you are spoiled for choice. Banks and building societies compete with each other endlessly. The situation has almost gotten out of hand with the people throughout Britain owing in excess of one trillion pounds. That’s a whole lot of money! And that’s why it’s important that you carefully compare loans when it comes time to borrow any sizeable amount of money.

Loans are not all made equal. You have to read the small print carefully, or have someone who is qualified explain it all to you. For example, if you found yourself in a position in say a year’s time to pay off a loan that was intended to run for five years, would you be able to do so without incurring a penalty? You should always try to build in as much flexibility as possible into any loan you take out.

Loans come in two basic flavors: secured and unsecured. A secured loan is one where something you own of value, usually your house, is used to secure the loan. If you fail to pay back the loan then your house, or whatever secured the loan, is forfeit by you. An unsecured loan, or personal loan, is one where there is nothing securing the loan. These kinds of loans are usually for lesser amounts, and your credit history becomes an important factor in the decision of whether or not you get the loan.

Both secured and unsecured loans can have many similar features that you should take into account when you compare loans. One of the most important things to consider is the interest that will be charged on the loan. Obviously, the lower the interest rate charged the better, as you will have to pay less back overall. Generally speaking, the better secured the loan is, and the better your credit history is, the better the chances are that you will get a low interest rate charged.

Payment protection insurance is common. As the name suggests, it protects your payment ability. If for whatever reason you become unable to make a payment, then you can draw on the payment protection insurance without incurring problems. Of course, you should always look carefully at your personal circumstances, both in the present and what you reasonably expect to be the case in the future. The unforeseen can always happen, and no one can guard against it, but you can prepare for what is likely or expected.

There is a lot to consider when you compare loans. You should never just accept a loan because it’s from your bank who knows you well, which will make it easier all round. By looking carefully at what is on offer you can usually get a much better deal that will be better tailored to you. The organisations that lend money are not doing anyone a favour; it is a business transaction where you help them, and they help you. Always keep that in mind when you compare loans and it will help you to make the right decision every time.

Home Equity Loan Comparison – Access Your Home’s Equity Through A Second Mortgage Or Equity Loan

You can access your home equity without the cost of refinancing with two financing options. A second mortgage will give you a lump sum check with a fixed or adjustable rate. A home equity line lets you tap into your equity when you want to. Both options allow you to write off interest on your taxes and avoid high financing costs.

Benefits Of A Second Mortgage

A second mortgage allows you to borrow up to 90% of your homes value. The lender, which doesnt have to be your primary mortgage lender, writes you one check. You can choose to pay off credit cards or make a major purchase.

Fees are none to minimal with a second mortgage. Rates are usually fixed and last 15 or more years. A 15 year loan lets you pay off the debt quicker, saving you cash on extended interest payments.

Benefits Of A Home Equity Line

A home equity line is like a secured credit card, only you are borrowing against your homes equity. You can choose to borrow a lump sum or only as needed. Most lenders issue checks and a credit card.

Rates are adjustable and are based on when you borrow the money. You can choose to never use the equity, but just know it is there in case of an emergency.

One option for new homebuyers is to put down a large down payment, securing low rates, and then apply for a home equity line. Its like a safety net, ensuring that you can still access your cash if needed.

Picking The Right Financing

Each type of home equity loan has its own advantages. A second mortgage offers secure fixed rates with small payments over a longer period. It makes sense for large projects, such as remodeling or paying off credit cards. A home equity line offers flexibility, better suited for smaller purchases.

With both types of programs, you still want to investigate lenders before applying. Be sure to look at financing companies other than your current mortgage lender. You want to find the lowest rates with the best terms by asking for quotes on both rates and fees. By investing a little bit of time, you will save yourself hundreds.