These days, everyone’s lives are burdened with paperwork. With newspapers, magazines, bills, junk mail, and who-knows-what taking up space in their day, few people have time to look at every piece of paper that comes their way. Unfortunately, it’s becoming more and more necessary to carefully examine bills and contracts, as various penalties are finding their way into the fine print of credit card bills, home equity loan and mortgage contracts. It truly pays to take the time to read the fine print in these documents.

Up to one third of major credit card issuers now include a “universal default clause” in their credit card terms. The UDC allows the credit card company to raise the interest rate on the account if the cardholder pays his or her bills late. This can apply even if the credit card bill is paid on time! It is important to find out if your credit card terms include a UDC, as your interest rate could be affected by whether or not you pay your telephone bill on time. This is just one of many ways that credit card companies are increasing their profits, but it isn’t one that they’re willing to advertise. When a letter comes in the mail from your credit card company that says “change in your credit card terms” or something like it, make sure that you read it. Failure to do so could raise the interest rate on your credit card substantially.

Another “fine print” issue that has been turning up recently is the prepayment penalty that is now being attached to up to half of all mortgages and home equity loans. The volatile nature of interest rates in the lending market has inspired many homeowners to repeatedly refinance their homes in the last few years. Lenders often hold a mortgage for only a few months before the borrower finds a lower rate and refinances, paying off the original loan. In order to “protect” the profits from lending the money, up to half of all lenders are now requiring a substantial penalty if the loan is paid off prior to a specified date. These fees can amount to several thousand dollars on a primary mortgage and several hundred dollars on a home equity loan. Most borrowers would not be pleased to go through the process of refinancing their home, only to find out at closing that they owed a penalty of five thousand dollars. Instead, be sure to read the fine print in your mortgage or home equity loan documents before you sign them.

As the lending and credit markets become more and more competitive, lenders are doing more and more to increase their profits. They are not necessarily doing so in obvious ways, however, so it is always in your best interests to read any document carefully before you sign. Your failure to do so could cost you quite a bit of money.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to debt consolidation and credit counseling, and HomeEquityHelp.com, a site devoted to information regarding home equity loans.

The first question many people have when considering estate planning is how to protect their spouse in the event that they pass away. Although it is common to offer the advice that a will or trust is the best way to protect a surviving spouse, it is also important to remember to explain what protection a spouse has prior to a will or trust being created in which they are a named as an heir or beneficiary. This will enable both the client and the lawyer involved to see what else may be done to advance the protection of the surviving spouse. In addition, running through such a checklist may help an attorney see avenues for reducing costs for clients and let the clients know that their attorney is attempting to select legal options tailored to their needs rather than choosing a one size fits all approach.

For example it is important for most clients who are married to understand that they probably own most of their major assets in what is called joint tenancy. An asset held in joint tenancy is passed automatically to the surviving spouse in the event that one spouse dies. Most married couples own most of their assets, such as the family home, automobiles, investments and accounts in joint tenancy. So the typical question that an estate planner helps to answer, for those couples, is not how to protect the surviving spouse with respect to the major marital assets. The typical assets in an estate owned by a married couple do not need to be guarded for the surviving spouse, in every instance. The question becomes, where do we want this asset to go after we have both passed away.

However, you may discover, in the state in which you live, that it is helpful to have estate-planning tools, such as wills and trusts, in place in case there is some challenge to the remaining spouse’s ownership. The example above is not meant to suggest that most people don’t need estate planners to guard their spouse’s interest in case of their passing, but rather, that it is important to understand what rights your spouse has before the question of estate planning arises and then to build onto those rights. It is important to have an attorney who will explain what those basic rights are, and how the state in which you live has designed those rights. Then your choices regarding estate planning will make more sense. Remember, that planning an estate is, in part, a creative process. There are many ways to plan an estate and the one that captures your interests in the most thorough way is the best. Your attorney should be working hard to find the right solutions tailored to your needs.

Whether it is because assets have come into the marriage in a way that is not traditional, or because the assets in the marriage have already been altered by law, like a pre-nuptial agreement, there may legal instances where a spouse will need additional legal protections in the form of estate planning. In addition, states will have different laws regarding how they allow assets to be transferred via a will. For example, if the individual who passes away has children, some states require that the children and the surviving spouse split any asset that goes into probate. In other words, the state will require the assets that can go into a will to be split in this way. This system might be great for some clients, but for others it means that an already modest estate be split, leaving the surviving spouse and children in financial trouble. Because wills are more heavily regulated than are trusts, a living trust might be the better strategy in a state that requires this kind of split.

Again, it is important when considering how best to protect your spouse in the event of your passing, to understand what assets need protecting — in other words, what assets could be taken away from your spouse after you die. Second it is important to understand what your state’s policies are regarding wills and trusts in order to understand what asset protection strategies are right for you. And finally, it is good to understand which assets will only be the subject of asset transfer in the event that both spouses pass away, and to decide, with your spouse, what you want to be done with those assets.

About Ronald E. Hudkins;
Ronald Hudkins is a retired military police enlisted member that was assigned as a staff researcher. He has coordinated with military and criminal investigators, set on court marshals and worked closely with the Staff Judge Advocate Generals Office (JAG). He has a keen sense of legal matters- their interpretation, initiatives and guidelines. For imperative financial planning needs he suggests his book “Asset Protection and Estate Planning for All Ages.” Additionally, he offers a Free Newsletter at his web site: http://www.AssetProtectNow.com.

Getting an auto loan with bad credit is almost as easy as getting a loan with good credit. In fact, several loan companies only offer bad credit loans. While this is good for individuals in need of a new vehicle, there is a downside to getting a bad credit loan. Here are a few tips you should consider before agreeing to a bad credit loan.

Lenders that Offer Bad Credit Automobile Loans

If you are looking for a bad credit auto loan, you will need to bypass your neighborhood banks and find an auto loan broker. While banks and other financial institutions regularly offer vehicle loans, they are not eager to lend money to individuals with a low credit score. In most cases, your credit score must be at least 640-620 to receive bank financing.

There are two types of lenders that offer bad credit auto loans: sub prime lenders and hard money lenders. Both lenders work with high risk applicants. However, sub prime lenders are more reputable. Nonetheless, an applicant must meet basic requirements before a loan is approved. For starters, auto loan applicants must have verifiable employment and income. Sub prime lenders also require applicants to be at least 18-years-old.

The requirements for a hard money loan are less stringent. Because of more lenient guidelines, hard money lenders charge applicants ridiculously high interest rates on auto loans. On average, a good credit applicant may obtain a car loan with a rate of 5 percent. A hard money lender will charge a rate 5 or 6 points above this.

Most sub prime lenders that offer bad credit vehicle loans do not take advantage of people. They are eager to help you. While the interest on sub prime loans is typically 7 to 9 percent, these lenders will not charge excessive rates in order to increase their profit.

Getting a Bad Credit Vehicle Loan

Bad credit vehicle loans are good for several reasons. One, they afford the opportunity for you to get a new or used vehicle. Two, these loans help you reestablish or build credit. If you have recently filed bankruptcy, a new auto loan is perfect for boosting your credit score. If you are considering a bad credit auto loan, avoid shady or hard money lenders. To locate a trustworthy lender, submit an auto loan application through a broker site.

See my recommended Bad
Credit Car Loan companies.

Carrie Reeder is the owner of ABC Loan
Guide.

Many Americans believe that an IRS debt is a debt for life and that the tax collector can hound them to the grave. Thankfully, that is not the case and there are statutory time limits on the ability of the IRS to examine and collect taxes. Taxes do expire at some point and in some cases IRS does not get the money they were legally entitled to collect.

Basically, IRS has 10 years from the date they send out their first bill to collect the tax.
The 10 year rule does not apply to the states. Some, like California have no statute of limitations and the state tax collector can indeed hound you forever. The federal tax collector must get the cash before the clock runs out.

For tax assessments made after November 5, 1990, the IRS cannot collect the tax after 10 years from the date of the original assessment absent special circumstances. Special circumstances that may extend the statute are: a bankruptcy not completed or wherein the tax is not discharged; filing an Offer-in-Compromise; or signing a Form 900 Waiver allowing the United States additional time to collect the tax. Also, it is possible for the government to sue to reduce the tax claim to judgment before the 10 years expires.

If you never file a tax return, there is no statute of limitations on IRS requiring you to file, but as a matter of policy, IRS generally only requires non-filers to file the last 6-7 years. If IRS files for you by doing a Substitute-for-Return (SFR), they have 10 years from the date they file the SFR to collect from you. If a Federal Tax Lien is on file against you, it expires and becomes void if the underlying statute expires.

You can find out when the statute expires on your tax bill by requesting a Record of Accounts (ROA) from IRS for each tax year you owe. If you can’t afford to pay the tax, your account might be eligible to be put in a “temporary hardship” status. It may be possible to “ride out” the statute in hardship if you qualify. An impending statute might also be a beneficial factor in an Offer-in-Compromise.

If you have a refund coming to you, you only have 3 years from the due date to collect your refund. If you file 3 or more years after the due date, the refund is lost. In some cases you can peruse a refund beyond the three years. If you full pay the tax, you can file a claim for refund within 2 years of the payment. If your claim relates to a bad debt or worthless security, you have 7 years to make a claim.

The flipside to the 3 year refund rule is that IRS only has 3 years to examine a filed return by audit in most cases. Now, the tax code is complicated and there are exceptions to these rules. If you have committed fraud or tax evasion, there is no statute for audit. There is also a 6 year rule for audit in cases of “substantial omission” of 25% or more in income. But for most folks, the three year statute will apply on audits.

Websites that can help you research these issues are: www.irs.gov, www.naea.org, www.exirsman.com, www.taxattorney.com, and www.etaxes.com. I do not recommend dealing with IRS on your own. You should get help from a tax pro if you have a tax collection or audit issue. Don’t hire some company you saw on a TV commercial, hire a flesh and blood person or reputable firm. A good CPA, Enrolled Agent (EA), Accredited Tax Advisor (ATA), or Tax Attorney can be invaluable. If you want to call IRS yourself, they can be reached at 1-800-829-1040.

James Robert Coleman, E.A., A.T.A.
Enrolled Agent & Accredited Tax Advisor
Member: National Association of Enrolled Agents
Former IRS Revenue Officer, GS-11
http://www.exirsman.com