What are the advantages of hiring a law firm

1)    Almost all law firms offer you free debt counseling services. While counseling, a debt counselor or an attorney analyses your financial situation critically. Then he recommends you the most suitable debt relief program. Many debtors make the mistake of filing bankruptcy when it is possible to avoid this traumatic experience. If you hire a law firm then it will help you to avoid such costly mistakes.

2)    A law firm can guide you to file bankruptcy as well as help you to settle or consolidate your debt. Also, it will offer you debt management services.

3)    A law firm conducts an audit before starting a negotiation process to verify the precision of any given data in order to ensure a successful settlement process.

4)    Another major advantage of hiring a law firm is that they have a steady working relationship with most financial institutions. This increases the chances of settling your debts successfully.

5)    Hiring a law firm can pay off if any legal issue arise while you are in a debt relief program. This is because the law firm will be able to give you attorney representation in that case.

Choose law firms with care

Hiring a law firm can be quite beneficial for you due to the above mentioned reasons. However, the debt relief industry is inundated with scam companies who claim to be legitimate law firms and deceive the indebted people by taking advantage of their desperate situation. It is wise to remember the following things before choosing a law firm:

1)    Remember that an authentic law firm always emphasizes on transparency. They would be happy to answer any question that you might have and will let you know all the important details so that you can understand what you are getting into.

2)    Check the online reputation of the law firm you are considering. You should check the Better Business Bureau (BBB) rating of the law firm to have an idea about their credibility. To know the client feedbacks, you can visit trustlink.org.

3)    Ask for testimonials from the law firm. If a law firm has a decent number of satisfied clients then it should not be an issue for them.

Remember that a law firm is always more reliable than a debt relief company. So if you are struggling with your debt then consider the above points and look for a law firm today.

When it comes to retirees who are currently struggling with high living expenses, a reverse mortgage can definitely help generate extra cash flow but there can be an expensive downside. These types of programs typically carry stiff fees, nearly three times as much as those on a traditional mortgage. These upfront fees can sometimes exceed 10% of the loan.

While a reverse mortgage can generate extra cash flow, it’s not necessarily the best or only way to do that. Due to the high upfront costs, a reverse mortgage would not be a great option if you are considering on borrowing a small amount or plan on moving in a few years. You might want to consider taking out a home-equity line of credit, which can cost far less.

Downside

Part of the upfront cost of a reverse mortgage would be the loan-origination fee. These fee can top $7000 on a $500,000 home.  With these types of fees, salespeople are more aggressive in persuading you to take out a reverse mortgage wether you need it or not. Some will try to convince you to invest in high priced financial products, such as annuities to boost up their commission even higher.

While annuities and reverse mortgage are usually pitched to seniors, it is unlikely that you would earn more with an annuity than you would be charged in interest and fees on a reverse mortgage. Worse, if you are considering on taking the money out in a few years then expect to be charged upwards of 20%.

Choose wisely

Truthfully, getting a new credit card can be as easy as walking into your local Sears and signing up for one of their store cards. This may seem like a good idea at first, but could end up doing you more harm than good.

Using retail cards to build your credit isn’t the best idea. Though these type of cards offer great promotions, they usually carry high up-front interest rates which can put a serious damage in your credit if you let your spending habits get the best of you. Say you decide to purchase a new TV with your Sears card. Not only do you now owe $1000 on your charge card but with the high interest charged to your account, it makes paying off the card a tough task and can raise your debt to income ratio, which may lower your credit score.

So before you decide to apply for that retail store card, remember to choose wisely.

Don’t overdraw it

A common mistake that most people do is overdraw their accounts. Though this doesn’t impact your credit score directly, keeping a balance in your account shows banks that you have some sort of idea on how to manage money, which makes you less of a risk to creditors.

Obtain a secure credit card

Most people who already have a checking account with their bank may find that the easiest way to obtain a credit card is through the firm they already bank with. Though it sometime may require a deposit to set up, people find the rates to be more reasonable then store cards and a great first step to building a positive credit history.

Low Fees. Looking for a bank with little to no fees these days maybe a little harder. It should be no secret that banks are actively raising fees in 2011. JP Morgan and Wells Fargo will begin to phase out their “ fee-free” checking accounts, which previously had no minimum balance requirement and monthly activation fees or service charges. Though online banks and credit unions tend to offer lower fees, larger traditional banks may spare their customers from higher fees if they have mortgages, loans or credit cards with the same bank.

Proximity. With ATM fees increasing ten cents from $1.32 to $1.42, based on Bankrate’s 2010 Checking Study, it is important to choose a bank nearby that has ATMs close to both your home and your work, where you can withdraw cash and deposit checks at your convenience.

Quality of Service. Bigger isn’t necessarily better in this category. American Customer Satisfaction Survey last month release that consumers prefer smaller banks such as credit union to much bigger banks, mainly due to individualized services and personalized customer relationships.

Savings Rate. It’s not exactly a saver’s market today, given the 0.5% average interest earned in a checking account.  You will generally find better rates at online banks like AllyBank, credit union, and SmartyPig.

Grace Period: These may vary by consumer and creditor, so while some people will have a little extra time to pay off their purchase, others may be slapped with the financial charge almost as soon as the first purchase is made. Luckily, credit card companies are now force to send out bills earlier so that you can avoid finance charges entirely, assume you have the funds to pay it off.

Weekend / Holiday Fees: If you ever paid your credit card bill over the weekend or had a bill due over the holiday such as Christmas, and paid it the following week, you’ll probably been hit with an extra processing fee. This can cause a lot of frustration especially during the holiday when money is scarce. With the Credit CARD Act of 2009, credit card companies are no longer able to charge you a late fee for payments after a holiday or weekend, but anything after that is fair game. Avoid this charge by paying a day or two in advance.

Charging overseas: Have you ever charged something overseas and were shocked to see on your statement how much more expensive the price was for that soda and sandwich. Some card companies won’t even wait for you to go overseas; if you purchase anything online from another country, like a sweet set of rims for your 2010 Nissan 350Z from Japan, and your payment is processed in yen, you’ll be hit just as hard as I was.  The way around the situation is to avoid online purchase from a foreign country if you don’t want to pay more than you already have.

Inactivity fees: Here are fee that we’ll be hit with at some point in time, assume you have a card that you haven’t used in an extended amount of time. Creditors don’t like being neglect and may generally charge you an inactivity fee as a wake-up call. Thankfully, these types of charges are now illegal. Companies have worked around the system by requiring you to make a minimum amount of purchases by year’s end. So either keep making those charges or close out the account to avoid the hassle.

Financial advisers blame the high rate of bankruptcy on today’s unemployment rate, along with poor oil and gas sales.

Bankruptcy laws can help those who can no longer pay their creditors get a fresh slate by creating a repayment plan or liquidating their asset in order to repay their debt. It also protects troubled businesses and can provide orderly distributions to business creditors through reorganization or liquidation.

With the new bankruptcy law being revamped in 2005, the amount of American’s who filed bankruptcy has continued to rise each year according to American Bankruptcy Institute and the National Bankruptcy Research Center.

The American Bankruptcy Institute also predicted that bankruptcy filings will continue to rise in 2011, but at a much slower pace.

With the discussion to discontinue their Free Checking Account back in October; Bank of America is now gearing their focus towards a tiered pricing model.

Bank of America’s New Checking Account Tier Models:

• Enhanced: This plan is designed for customers who need multiple checking and savings accounts. It will carry a $15 monthly service fee. To avoid these fees, customers would have to deposit at least $2,000 each month along with maintaining a $5,000 combined balance between the accounts.

• Premium: This plan offers multiple interest bearing accounts for customers with a minimum balance of $20,000. It carries a monthly service charge of $25, which could be avoided if you have a Bank of America Mortgage or investments.

• Essentials: This will be their $15 basic plan offering single checking account with access to ATM’s, in branch tellers, online and mobile banking options.

• eBanking: is designed for customers who do all their banking online. To avoid fees, customers should avoid visiting branches, speaking to tellers, and sign up for paperless statements.

Along with these new changes, Bank of America will be launching a rewards program called Platinum Privileges Program for customers who are able to maintain at least $50,000 in deposits in their accounts.

What does this mean for Bank of America’s current customers? More Fee’s? Let us know your thoughts.

It Can’t Hurt to Try:

Reducing your interest rate could take as little as one phone call and a few minutes of your time to save you hundreds, if not thousands of dollars across the life of your debt.  Credit card companies are often more willing to reduce the rates if you simply just ask. Though this process does not always work, it can’t hurt to try.

Before the Call:

Before you grab that phone and dial away, make sure you have all your statements and records on hand.  Though credit cards companies are sometimes reluctant in reducing your rates, having your records on hand will show them that you’ve been up-to-date on all of your accounts, which may play in your favor.

What Improves Your Chances:

• You haven’t asked to reduce your rates on this particular card before.
• Always pay more than the minimum payments each month.
• Your account is in good standing with a good track record.
• Your credit score is up to par.

What You Didn’t Want To Hear:

Don’t let “NO” discourage you from reducing your rates.  If they’re not willing at first, try back in a few days and you might get a different representative that is more willing to help you. Let them know that you have different options and that you’re willing to do a balance transfer to another card. Credit card companies will do whatever it takes to keep your business. Remember, PERSISTENCE will pay off.

Step One: Stop recurring new balances. For cards that carry a balance, put them in a safe place far away from your reach so you can’t easily use them.  If you find yourself using that card for monthly recurring payments on bills, cancel the automatic payment, this will help you minimize new charges.

Step Two: Set up your escape route. Gather all your bills together and figure out exactly whom and how much you owe. This will help you plan an escape route and prioritize which cards to attack first.

Step Three: Set it and forget it. With all your bills in order, grab out a recent paycheck, this will help you figure out what you can afford each month. Now set up an automatic payment plan through your checking account where funds will be transferred each month in order to pay your credit card bills on time.

Step Four: Pay your bills on time. Obviously, having to many late payments will hinder your credit score along with making your finances more of a chore. Always be in control of your payments and remember your due dates.

Step Five: Seek help if you need it. If you’re unsuccessful in changing your bad habit or just cant control your spending, don’t be embarrass or afraid to seek help. There are tens of thousands of American’s drowning in debt each day and help is only a phone call away. Let a pro guide you to your financial freedom with a free debt consultation.

Under U.S Securities and Exchange Commission regulation, a company with more than 499 investors is required to reveal it’s financial results to the public.

With the new deal made, this could put pressure on the company to go public as co-founder Mark Zuckerberg had resisted. Zuckerberg has yet to speak out on the possibility of an initial public offering or a sale of the company. Those who are involved indicated that a public offering could happen as soon as 2012.

You’re probably wondering what Facebook is really worth? No one knows exactly. As Facebook grows at a rapid pace, more questions are being stirred up about what the company is worth in the public market.  But with Goldman’s involvement, it will give Facebook more ammo to steal away valuable employees to develop new products. Analyst estimated that it could bring in a near $2 million profit annually.

As for Zuckerberg’s personal fortune, Forbes estimates it to be at $6.9 billion when Facebook was valued at $23 billion.