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Jump Start Your Emergency Fund

Thursday, May 5, 2011

When people hear the word debt, they often think of excessive credit card usage or multiple loans with high interest rates. While credit cards and loans may often be culprits, other factors such as unexpected accidents, loss of a job or a sudden illness can cause people to lose a primary – if not sole – form of income. With no money coming in, routine purchases such as groceries, gas and housing costs can cause an individual’s finances to spiral out of control.

By planning for the unexpected, people can circumvent a majority of the financial problems that life tries to toss their way. Through emergency funds, individuals can set aside a certain amount of cash that will cover their basic living expenses in the event of a financially draining event such as a car wreck, long-term sickness or even a job lay off.

Setting up an emergency fund is simple, and people can begin to accumulate savings through a few easy steps:

1. Decide what goal you want to meet with your emergency fund.

Do you want to save for three, six, nine, 12 or 18 months? Three or six months is often the standard for emergency funds; however, it is best to save as much money as you feel comfortable saving. After all, this fund will be your money source if all other income goes away. Consider your current living expenses and any variations in them and plan accordingly. Don’t be afraid to err on the side of caution; you’d rather have too much saved up versus not enough.

2. Choose the type of account that will house your emergency fund.

You might consider using a high-yield savings account. These types of accounts typically offer a high annual percentage yield (APY), which means you’ll earn more money for each dollar you put into your account.Another viable option is certificates of deposit (CDs). When choosing any type of account, make sure you understand if it’s a variable or fixed-rate account; that way you are prepared for any fluctuations in your interest rate.

It’s also important to consider factors such as ease of access to the money and any penalties associated with withdrawing the cash. Ultimately, you want your emergency fund to be safe and available when you need it – but not so available that it’s tempting to make small withdrawals. Typically, the higher the interest rate, the harder it is to liquidate the savings. Always keep in mind that the purpose of this account is to grow money gradually and safely, not aggressively.

3. Save, save, save!

Once you have an account set up, it’s time to start saving. As with many things, establishing regular saving habits comes with time and must be intentional. An automatic transfer of cash into your account is a convenient and reliable way to make sure you always contribute money to your emergency fund. You can have this money transferred from a paycheck, checking account or other account that has money flowing into it. Working with your bank or credit union representative, you can determine if your transfers should be monthly, bi-weekly, etc.

To determine how much money to contribute to the savings account regularly, analyze your spending over a month’s period. Determine your realistic living expenses for the allotted amount of time that you want to save for – three months, six months, etc. – and then calculate an affordable amount of money that you can put into your emergency fund on a consistent basis.

By taking these simple steps now, you can be well on your way to having a solid emergency fund in place. Hopefully, you’ll never need it; but if the unexpected happens, you’ll be well-prepared and financially better protected from any debt incurrence.

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Northwest Georgia Bank is proud to be a leadingChattanooga business bank that offers customers sound financial advice and services that includedirect deposits, free business checking, individual retirement accounts and more.

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What Is a Tax Amnesty Program?

Thursday, April 21, 2011

Times are tough, and seem to be getting tougher. For every dollar you make there are a dozen ways to spend it, and you still come up short. Add to that the fact that you didn’t file your taxes on time, or maybe made a small mistake on your tax return. Tax debt won’t simply go away. Maybe it’s time to look into a tax amnesty program.

What Is a Tax Amnesty Program?

The first thing to remember about a tax amnesty program is that you will still have to pay your taxes – the debt will not be completely forgiven. However, the interest and penalties may be diminished giving you the opportunity to catch up. Tax amnesty only applies in certain situations for qualified individuals or businesses. Basically, it gives people who have not filed their tax return on time, or have made mistakes on their return, to take care of the problem before they are subjected to prosecution.

Qualifications

In order to qualify for a state tax amnesty program, you must meet certain criteria. The qualifications vary from program to program, but there are a couple of constants. Usually if you are under investigation or are being prosecuted for tax evasion, you won’t qualify for a tax amnesty program. Other than that the rules are fairly broad, with each program containing its own set of rules. Federal tax amnesty programs typically apply only to certain organizations or some particular tax or duty that is owed. They usually don’t apply to income taxes. Consulting with an IRS representative or your tax attorney is recommended in order to find out whether your particular case qualifies.

Applying for Amnesty

After meeting the qualifications you will be required to sign a settlement agreement which outlines your responsibilities, including the amount you owe and a deadline for payment. The details of the form will vary from state to state, or program to program, but are basically the same. You will be required to identify yourself – these programs do not allow for anonymity – and the amount of actual taxes owed must be stated. If you’ve made a mistake, whether deliberately or otherwise, now is the time to declare it. A date will be assigned at which time the debt, usually including interest, must be paid. In return any penalties that would usually apply will be either forgiven or diminished, and you won’t have to fear being prosecuted. Before signing a settlement agreement it would be a good idea to consult a tax attorney for advice.

Settlement Agreement

The settlement agreement will lay out the terms of your particular case, including your total fiscal responsibility and due date. It may also include a requirement for you to pay future taxes in full and on time. Failure to do so could mean even harsher penalties in years to come. It is not a document to be taken lightly. You should view this as an opportunity to clear the record and start afresh.

Paying Back Taxes

Whether your tax troubles are with a state government or with the IRS, there is typically a small window of opportunity in which to make amends without fear of prosecution. If you owe or must file back taxes, it’s your responsibility to see that they’re paid. A tax amnesty program usually offers you the opportunity to do that without going to jail. In most cases, you will still be required to pay your entire tax debt, including interest, but some or all of the applicable penalties may be forgiven – and you’ll avoid prosecution.

It’s Your Obligation

If you apply for, and are accepted into a tax amnesty program and fail to meet your financial obligations within the designated amnesty period, your penalties could be severe. You will probably not be required to pay everything you owe in a lump sum – payment options will probably be made available to you, including monthly payments in some cases. The most important thing to remember is that you’ve been given a second chance – that’s what amnesty is.

Guest post from Bailey Harris. Bailey writes for www.insurancequotes.org

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Choosing the Right Debt Relief Company for You

Wednesday, April 20, 2011

After making the decision to reduce credit card debt, the next step is to choose a debt relief company for help. Choosing the right company will help you reach the most beneficial settlement and ensure a smooth negotiation process. Working with the wrong company may end up being a very expensive mistake.

Before making a decision, consumers will want to make sure that these five statements are true about the company they choose:

1. A good debt relief company will be affordable.
Before choosing a company, make sure that you understand how much the program will cost. A competitively priced program will cost no more than 15% of what the consumer owes. Before enrolling in a program, determine how much you can expect to pay each month. If the program doesn’t fit into your monthly budget, the company obviously is not the right one for you.

2. If the company does not deliver, they will refund customers for the cost of the service.
Before requiring payment, debt relief companies should send customers a written contract that lists exactly that the program entails. If the debt relief company does not honor their end of the contract, you should be entitled to your money back.

3. An experienced debt negotiator will be able to answer all of your questions.
Make sure to approach the debt negotiator with any questions you may have. If he or she cannot answer simple questions about the negotiation process, how the program may affect your credit, or associated fees, the company may not be the best one for you.

4. On the other hand, the debt negotiator should have plenty of questions of their own.
To assess whether your creditors will be willing to negotiate, the company will need to know about your financial history. The company should be asking about account history, recent large purchases, bankruptcies, and other important information.

5. Good debt relief companies have good reputations.
If past customers did not have a good experience with the company, there is a good chance that you won’t either. Check with the Better Business Bureau before enrolling in a debt relief program. The right debt relief company will have a reputation of providing honest and effective service.

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UK is suffering from ‘shortage of office space’

Tuesday, April 12, 2011

Britain is going through a commercial property crisis, it has been said.

Companies looking to expand their commercial property for sale portfolios may find it difficult as there is a lack of office space in the UK.

While demand for real estate is at a high, there are simply not enough units in Britain’s major cities to fulfil interest from potential investors.

A report released by Jones Lang LaSalle (JLL) on the property investment opportunities in Edinburgh revealed just as much.

It showed that while there is some available space in the city, this is not enough to cover the number of firms looking for properties, NeedOfficeSpace.com reports.

This is because findings from the specialist revealed that between 2014 and 2018, 20 per cent of companies with offices in the Scottish region will have their lease expire and therefore more companies will populate the market place.

Cameron Stott, director at JLL in Edinburgh, stated that supply is “gradually being eroded”, due to the number of firms looking for new and improved locations in the city.

“A lot of firms don’t want to move into the town house offices now, they are looking for modern facilities,” he said.

This could be a concern for businesses based in Scotland who are hoping to invest in real estate there, as they will be up against a lot of other firms doing the same.

Mr Stott remarked that the “short-term picture is still pretty tough” and expressed his worry that the situation will only worsen when occupiers lose their leases.

But Edinburgh isn’t the only UK city with problems of office space as London is also experiencing a deficit of available properties and the possibility to buy a business.

Indeed, earlier this week, Capita Symonds revealed that the capital is set to suffer the worst shortage of Grade A office units since the 1980s.

A lack of new development projects is said to be the reason behind this and areas on the edge of the city could become popular locations for commercial property investors.

Director of Capita Symonds James Gillett said firms may consider purchasing in Stratford, Greenwich and King’s Cross.

“Those who took the plunge and invested in the central London office market over the last 18 months have good cause to celebrate,” Mr Gillett added.

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What Happens To Debt When A Person Dies?

Tuesday, April 12, 2011

The aftermath of a death is undoubtedly an incredibly sad time, wherein the last thing the deceased’s family wish to worry about is how to handle any debt that their loved one has left behind. Yet unfortunately, the reality is that when a person dies, there are many financial affairs that must be handled, including application for probate and the settlement of any outstanding debts.

Before assets or money can be accessed in order to pay off any debts, probate must be obtained. Probate essentially states who is permitted to access the deceased’s estate in order to use the properties and assets within to pay off debts and distribute what remains to the correct beneficiaries.

The matters involved in probate can vary in complexity. However, it is almost always advisable to hire the services of a skilled professional, to ensure that all legal matters are dealt with properly and correctly. However, this can be expensive, so in order to keep the probate cost to a minimum it is recommended that a probate firm or specialist that will offer a fixed fee are utilised.

Once probate has been obtained, the first matter that must be dealt with is the repayment of debt.

Debts are simplest to handle when the deceased has left no money or assets such as cash in a bank account or items of value that could be sold such as property or a car. In this case the family will not inherit the debt, it will simply be cancelled out. Also, in the event that nothing of significant monetary value is owned, probate will not need to be obtained. Yet it is important to note that in community property states, it is possible that the spouse of the deceased may inherit the debts; however this is only applicable to debts which have been accumulated during the length of the marriage.

Debt is also inherited in the case that there are two names listed on a financial account such as a loan or bill payment.

However, it is rarely the case that the deceased would have owned nothing of monetary value and in this case, any money or assets must be used in order to settle the remainder of any debts.

Debts are ordered by importance and this is dictated by probate law – the first payments that must be made are for any mortgages or car loans. Debts including credit card bills and student loans are to follow, while any other debts are considered to be of least importance. The family will only receive an inheritance should there be money left over following the settlement of all debts.

However, debt collection companies know that collecting debts from an executor (the person named to deal with the deceased’s finances) can be a very long and taxing process. Because of this, it is often possible to negotiate with the creditors in order to reduce the size of the debt (smaller debts usually mean that obtaining probate is less complicated, thereby ensuring it is obtained more quickly and debts can be paid). Additionally, if the process involved in obtaining probate is reduced, the probate cost should be reduced also, particularly if the employed solicitor is charging an hourly rate.
When dealing with the debts of a deceased family, it is also important to remember that debt collection companies might not always be completely honest. They are aware that not everyone is fully informed of their legal rights, and they might try to claim that the family are liable for a debt which is not their responsibility. Remember that it is only in a small number of cases that a family member will inherit a debt; otherwise any debts can only be paid off should the funds tied up in the estate allow it.

This article was written by James Harper on behalf of Wills and Probate Services. James is a talented writer on a variety of subjects including probate law and probate cost.

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How Equity Release Can Help You Enjoy Your Retirement

Monday, April 11, 2011

It seems that the Carnatic was a long-forgotten part of Egypt’s maritime heritage until Divers, searching for a much later shipwreck happened upon her remains. It was then the subsequent research which revealed this tragic, yet fascinating story from another age of shipping and another age of Diving. Many accounts, however, still describe the wreck as being in two separate halves – but then she did break in two with each “half” sinking separately.

Visiting the wreck, however, will reveal what must be one of the most incredible postscripts to any shipwreck story – because, today, the two halves of the Carnatic have fallen to the seabed just as they might have done had they gone down as one piece.

I was visiting the Red Sea as a guest of Diving World and spending a week on board their luxurious live-aboard Diving boat “Miss Nouran.” Our Dive Guide was that very popular Instructor Ali Baba from whom I learned a great deal. He explained that, with prevailing winds being generally from the north, our Skipper – Captain Mohammed Hassan would carefully lay out two anchors onto the sand and allow the wind the push the boat gently back towards the Reef – thus presenting the dive platform right above the wreck and avoiding any contact whatsoever with the Corals.

I became very impressed with the way in which these two experts worked together and took great pride in getting each separate set of circumstances down to a fine art – but then they regard both the corals and the wrecks as far too important to damage!

The Carnatic lies parallel with the base of Abu Nuhas Reef. She is on her port side with the bows facing east and the stern west. Bearing in mind the manner of her sinking, there are three distinct elements to this dive – with the fore and aft sections still largely intact and these being joined together by the very badly damaged area – where the ship broke and, once, the engine room was found.