Compare Credit Card Interest Rates to Interest Rates Paid on Insurance Policies

Credit card interest rates remain stable on high, have you noticed? If you have been lucky enough to get a legitimate zero credit card interest rate for the next 12 months then count yourself among the more fortunate among us because the rest of us are still paying at least 8% and higher.

How come financial institutions can keep the interest rate we pay on credit cards at a steady high rate of interest while managing to pay us such a pittance on our savings money? Perhaps this is another reason why we have all been duped into living on our credit cards rather than striving to put more savings into the bank. None of us feel that it's worth saving our 'real' money because it's considered not good enough to pay us a decent rate of interest on.

Here in Australia, once our money's in the bank they pay a pittance interest to us on it but loan it out to others at an astronomical rate of interest. I'm quite sure that the big four Australian banks weren't Robinson Crusoe in this practice but that still doesn't make it right, does it? Just because "everyone's doing it" or "that's the way it's always been done" still doesn't make it right. Immoral is immoral no matter which continent one is on. But the part that really, really bugs me, is that "WE the people" let them do this to us.

Our Governments, both Federal, State and Territory, colluded with them on the grounds that they needed to do this to remain stable and our elected officials believed them! There has been no statutory powers  put in place with any real incentives or 'big sticks' to monitor the big conglomerates here in Australia and make them behave with respect to our general population. So consequently we have all had to pay exorbitant interest rate charges and then our bank fees and charges again on top of that. Then they charge us all over again for keeping our account in their banks.

I mean, it's so sad and bad it's almost funny. Ludicrous is the word that springs to mind.

Now if you are a holder of a term life insurance policy do you know what rate of interest they are paying you annually on that? If not, go and check it out now.

Are you really surprised? More likely you may never even thought too much about it in the past because you've never needed to. But now that "Crunch time" has arrived with a THUD, perhaps it's time to draw up the drawbridge and batten down the hatches.  If you are like me, as I suspect you probably are, then it's time to investigate cashing in that structured settlement policy if the cost to do so is not also going to be too exorbitant (but you can shop around for the best rates) and start negotiations with your financial institution to pay them out and then cut up their credit card. 

Once you become fully aware of the interest rate difference between what you are paying out each year to a credit card company or other financial institution, to what an insurance company is paying you on a term life insurance policy, then perhaps its time to say "Enough and no more!"

If you are more concerned with who or how you are going to be buried, then perhaps you could purchase your burial plot or cremation through your local Undertaker now? Many Funeral homes are now offering these facilities because people want to know where and how their bodies are going to be laid to rest or otherwise disposed off when they die. And doing this isn't going to shorten your life any because you can purchase years ahead. This solves your Funeral problem so you may as well enjoy your life insurance while you still have life and not give it away in interest payments to credit card institutions.

What is a Subprime Loan?

A subprime loan is a loan made to someone who wouldn't or couldn't qualify for a loan from a financial institution using existing credit law as set out as guidelines for safe lending practices under existing legislation. This legislation is either Federal or State law.
There are any number of reasons as to why a person may not qualify for a loan under standard credit lending criteria but this wouldn't stop a less ethical institution from making the loan. However, they would have, and did have, exorbitant loan repayment schedules that the mortgagees weren't able to comply with to meet their monthly mortgage payments.

In Australia back in1982 when we applied for our first home loan, the bank was not able to loan us above 90% of the purchase price required. These laws were put in place to protect the lender from unnecessary defaults on payments and the borrower from over extending their financial commitments. This meant that every person applying for a loan had to have a 10% stake of their own money in the residence.

When I looked at getting another loan from a mortgage broker in 2003 all I needed was to have a 5% deposit on the new residence. Needless to say, we didn't go ahead with the investment property with the home mortgage broker but went with the bank again. These are all decisions that have to be investigated and evaluated before you sign anything.

Taking out any monetary loan is a business decision. If the loan is to be repaid over twenty five years then that means that you will be paying that bank or that financial institution money every month for the next quarter century.

This is where I think a lot of people have forgotten to remember. And a subprime loan is made on the agreement that the person accepting the loan will be paying a lot more money back to the mortgager than that originally borrowed because they have accepted the money on a higher interest rate and some of these loan repayments have been made with minimal payments in the beginning because then the interest is accrued on the biggest amount of the loan. Go to http://www.sell-structured-settlements.info/ for more information

Would you Benefit Fairly from Selling Your Structured Settlement Today?

Many people today have a structured settlement that pays them out in dribs-and-drabs but they really need the money this month. The urgent need for ready cash could be to pay of credit cards or other debts or you may want to purchase stocks and bonds while the prices are lower than they could be in the future. Whatever your reason is for wanting the cash now is entirely up to you. It is your structured settlement entitlement and you can do with it as you will; so if you want to sell it, you need to be prepared to take less than its current value.

How much less is up to what you can negotiate with the buyer. But I suggest you make really sure that this is the best way of achieving a fix for whatever problem you are trying to solve. Sometimes, even if it takes years, a little bit of extra regular cash income coming in frequently can be a bonus.

Selling a structured settlement is a big decision read more here
 
 
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