the truth behind your FINANCES!

Written by Jay Ball


Between 15 - 20% of people in our country own there own businesses. This statistic is onrepparttar rise thanks torepparttar 129501 incredible invention ofrepparttar 129502 Internet. The staggering truth is that of these only 5% are genuinely financially free! You may well see lots of expensive cars driving on our roads and big houses inhabited byrepparttar 129503 seemingly wealthy, but these houses and cars are not yet paid for.

Never in our history has it been so easy to lend money. Banks and building societies are falling over backwards to lend us money. You can sign your life away to a 50-year mortgage these days if you choose! Banks and building societies are offering 125% mortgages to first time buyers and business is looking outwardly great.

The credit card companies also love today’s economy. You can borrow enough money on a credit card nowadays to buy a brand-new car! The loan companies are also cashing in on ignorant and naive individuals and this really concerns me. The advertisement marketplace is going wild on media adverts for consolidation loans. You knowrepparttar 129504 type? “We will help you to consolidate all of your existing loans into one affordable monthly payment” They call this type of loan a HOME OWNERS loan. Yes you can consolidate all of your existing debts into one affordable monthly loan, but what do you call affordable? People are consolidating their present debts into one huge debt and loaningrepparttar 129505 money to repay this new debt. To actually repay this debt in full will take these people years. What’s more they’ve secured this loan on their one and only ASSET - their HOME!

These unfortunate people aren’t thinking aboutrepparttar 129506 future and their long-term future plans, they’re thinking aboutrepparttar 129507 immediate and present situation. Inrepparttar 129508 meantime what happens whenrepparttar 129509 interest rates begin to rise? The interest rates on a consolidation loan will take years to pay off and whilst you owe money to your lender you’re not secure at all because your consolidation loan is secured on your home.

What does this mean?

If you cannot pay your loanrepparttar 129510 Loan Company will TAKE YOUR HOME as payment!

The reason it is so easy to lend money at present is becauserepparttar 129511 interest rates are so low. Atrepparttar 129512 time of writing this web page our present government has setrepparttar 129513 base rate of lending so low that people are dangerously getting themselves into debt through their own ignorance towardsrepparttar 129514 economy. What is really happening will become all too apparent inrepparttar 129515 next few years whenrepparttar 129516 tide turns andrepparttar 129517 interest rates begins to rise sharply. If you’re not financially free or in control of your assets whenrepparttar 129518 tide turns you will lose everything. History always repeats itself and sooner or later a recession will hitrepparttar 129519 world trading markets and all of those people who borrowed huge amounts of money to buy their big house and their BMW or Mercedes will be in big financial trouble.

Wait, it gets worse!

SHOCK – HORROR! Oncerepparttar 129520 tide turnsrepparttar 129521 interest rates will saw and if you’re not secure your financial world will come crashing down. The mistake that people have made is to foolishly believe that their loan rates will remainrepparttar 129522 same, they won’t. Let me explain in simple terms to you my theory by giving to you a simple example:

If you have a current ‘interest only’ mortgage of say £100k andrepparttar 129523 interest rate applied is £5% your monthly payment will increase withrepparttar 129524 interest rate. What happens ifrepparttar 129525 interest rate climbs to 10%? Your mortgage could double. In 1989repparttar 129526 interest rate sawed to 15%. If this happens (and it could) your present mortgage payments could treble! How will you survive financially?

Your mortgage payments could increase by 300% inside 12 months and any other loans you may have will also require payment. If your wage doesn’t allow sufficient funds to meet these demands than you will lose everything slowly and painfully. Whenrepparttar 129527 interest rates do begin to rise (and they will)repparttar 129528 debt consolidation companies will cash in on you. Before you know it you could owe money forrepparttar 129529 rest of your life and if you can’t pay what you owe than your lender will take your car your home andrepparttar 129530 clothes off your back to meet their demands.

SO WHAT’S THE ANSWER? My advice to you is to pay off your existing debts as quickly as possible. If you are driving around in a car that is financed by a finance company pay this loan off as quickly as possible. Contactrepparttar 129531 finance company and ask them for a final settlement figure. This way you’ll know exactly how much debt you’re in. If you can afford to settle your finance early than take advantage of this and settle immediately. This way you’ll own your car outright, you’ll have paid less in interest and you’ll have some equity if you need it. If you can’t afford to settlerepparttar 129532 finance atrepparttar 129533 present than check what interest rate you are currently paying and search around onrepparttar 129534 Internet or inrepparttar 129535 high street for a lower rate of interest. Whatever you do, don’t delay in taking control of your finances today.

What Do You Want This Year?

Written by Angie Dixon


Christmas is all around us, and many people are making up wish lists. Those who aren’t doing that are busy setting down their New Year’s Resolutions already. But this is a good time to sit down and do some serious introspection.

What do you want fromrepparttar holidays this year? Do you want to rush around, spend a lot of money you don’t have, and yell atrepparttar 129499 kids for not playing with all twenty ofrepparttar 129500 toys they asked for—atrepparttar 129501 same time? Is that really how you want to spend Christmas?

We talk about “Christmas spirit,” and mostly we mean giving. Giving of ourselves, giving to people who need it. That’s great, that’s Christmas spirit.

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