Home Equity Loan – Not just for home repairs, and tax deductible, too!Written by Charles Essmeier
Thanks to combination of low interest rates and skyrocketing property values, home equity loans are more popular than ever. The value of home equity loans taken out by Americans has doubled in last two years, and market for them shows no signs of slowing down. Obtaining a home equity loan is usually a fairly simple process involving some paperwork, a credit check, and a home appraisal, and entire process can often be done in just a few weeks. Lenders will often lend up to 80% of value of home’s equity, and some lenders will even lend up to 125% of a home’s equity.
Home equity loans are quite useful, and have several advantages over other types of loans, such as credit card loans or more traditional secured loans. The biggest advantage is that interest on home equity loans is tax deductible. The interest rates on home equity loans are already pretty competitive, but addition of tax deduction
| | Paying off Credit Cards With Minimum Payments?Written by Johann Erickson
Repaying credit card debt by making minimum payments varies with each credit card company. There are a few things that can help you understand why it is so hard to get caught up paying minimum payment.
First, you need to understand what minimum payment is for your credit card. The minimum amount is how much you are required to pay credit card company every month on your balance due. The rule of thumb with majority of credit card companies is 2 percent of balance that you have due. So, if your average daily balance for month is $2,000 then your minimum payment for that particular month would be $40. That does not seem too bad. But, you also need to know that you are charged interest on balance due also. Some credit card companies charge around 17% interest on your balance due.
Now, you must first understand how they charge interest rate. The interest rate on your credit card is usually referred to by APR or annual percentage rate. The APR is also determined by whether you have a fixed rate or a variable rate. A fixed APR will remain same unless credit card company changes it in writing prior to charging new interest rate. A variable APR changes according to changes in national interest rate.
Okay, now you know your APR, but there are three different ways of calculating amount charged to your credit balance, it will be charged by either average daily balance, previous balance or by adjusted balance.
If you are charged interest by your average daily balance credit card company will calculate your balance by taking debt you had in your account every day during which billing statement covers and average it out it over billing period.
If you are charged interest by your previous balance credit card company will take your balance from previous billing period and use it for determining your interest charges.
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