By Omar M. Omar
Article01.htmlMany people in the UK, in fact as many as one in three UK taxpayers have paid too much tax!
The Taxation People, are a forward thinking online accountancy service that specialise in helping people who might be eligible for a tax refund. They offer a online service, with a simple and easy to follow process that will get you the refund you are entitled to.
I would urge you to check out
The Taxation People, where if you have been or are currently employed
The Taxation People can help you get a Tax Refund.
The Taxation People are a trading name of Greer & Taylor LLP a respected and trusted accountancy service provider who offers a number of online services. Initially they are only offeering the Tax Refund service that can be found at www.thetaxationpeople.com, but Greer & Taylor LLP are about to lauch a cost effective Self Assesment Service, keep an eye on www.greer-taylor.com for more information.
Homeowner LoansAnother bill has just landed through the letterbox and your still haven`t paid the monthly direct debt to the utility firm. You`ll have to sort out funds for your credit cards next week and then there are the catalogue payments to make. It`s the same story each and every month where you struggle to keep on top of your regular payments. Having taken out dribs and drabs of loads over the last few years you now have to pay a number of companies back. What if you could amalgamate all of your loans into one fixed monthly payment? Suppose you could reduce the amount that you pay each month by spreading the payments over a longer period of time. Look into the various
Homeowner Loansthat are available at the moment and you could end up paying less in repayments each and every month. Price comparison sites are the places to look if you want one of the
Homeowner Loans. They`ll scour the marketplace searching for
Homeowner Loansthat will suit your individual needs. Combine all of your debts into one slightly larger loan amount and you should have more money each month that can be put away for a rainy day.
Creditors will measure your credit rating based on the following three main things.
- Capacity
- Collateral
- Character
The three "C`s" show creditors your:
- "Capacity" or income to pay the debt
- "Collateral" or assets to secure the obligation
- "Character" shows your compliance to repay the debt
1. Capacity
The very first question is whether you have sufficient income to repay the debt. Creditors will definitely check to see if your income exceeds your expenses so that you ca comfortably pay the debt. A creditor will then want to know:
- Your income - from all sources
- Your fixed expenses
- Your other debts
The amount remaining from your total net income, after deducting your fixed monthly expenses and other debts, is your capacity. If your net income is $3,000 a month and your total living expenses is $2,500, then your credit capacity is an amount that requires no more than $500 in monthly payments.
If you now pay $400 a month for other credit obligations, then your remaining capacity is a $100 a month, and a creditor should extend you that amount of credit.
There are three techniques that will allow you to maximize your income:
- Increase your income
- Decrease your expenses (easier to do than the first one)
- Reduce your other debts
2. Collateral
A lender or creditor can be secured or unsecured. Secured lenders hold a lien against specific assets, such as real estate, an automobile, or boat. If you fail to pay, the secured lender can sell the pledged asset to recover debt owed. Secured lenders seldom loan more than the auction value of the collateral.
Secured credit, is an almost guaranteed way to rebuild your credit. Even with poor credit, a lender may advance your credit if you ca secure the credit with a lien against some valuable asset. Many creditors extend credit entirely on the strength of the pledged assets.
Other credit considerations are either ignored or carry comparatively little weight in the credit decision.
What can you use as a collateral to secure your debts and rebuild your credit? You may be appreciably wealthier than you think. Add the value of your various assets (property that you own) and subtract any existing mortgages or lies against those assets. The difference is your equity or net worth in the asset.
This is what you have available to secure a loan. Do not overlook any asset:
- Home
- Investment real estate
- Stocks, bonds, mutual funds,
- Automobile
- Boats, planes, recreational vehicles
- Notes and mortgages due you
- Art, jewelry, antiques
- Pensions, IRAs, and Keoghs
- Royalty income
- Income from trusts
You may have other assets to pledge. The point is that collateral gives you a borrowing power approximately equal to your equity in your assets. Regardless of your credit history, if you have collateral worth a solid $100,000, you should be able to borrow close to that amount.
3. Character
Creditors next consider your character. How important this is depends upon the type of credit, and who your creditors are. Asset based lenders rely chiefly on collateral, and they are less concerned with your character than are unsecured creditors who can only rely on your prior reliability for honoring your obligations.
When creditors check your character, they basically look at how you satisfied your past obligations. Meaning they want to know:
- How many credit defaults have you had?
- What was the reason for the defaults?
- How recent are they?
- Do you own your own home?
- If you rent, for how long have you rented the same apartment or house?
- Do you have a checking account?
- Do you have a savings account with regular deposits?
- Do you have a payroll savings plan at work?
- Do you have a telephone in your own name?
- Do you have a criminal record?
- Have you filed bankruptcy?
Positive answers to these nine questions will often offset an otherwise negative credit report. Basically your credit character boils down to your credit history in the past. In the eyes of creditors, if your past credit character is good, there is no reason to believe why your future won`t look promising.
