Jadyn Financer Blog

Can your life insurance policy fund your debt management plan?

2010-01-05T02:00:00.000-08:00

Everybody wants to get out of debt since debt can really make their life troublesome. The problems get worse when your debts go beyond your control. It’s difficult for you to achieve financial stability if you have piled up excessive debt. In these circumstances, you obviously start looking for various options to bring yourself out of debt. Debt management is a well-known debt relief option that many debtors turn to. Nevertheless, you should keep in mind that you have to fund the debt management program. If you’re cash strapped, how can you fund a debt management program? A life insurance policy can help you out. You can borrow from your life insurance policy to finance your debt management program and take control of your finances once again.
Under a debt management plan or program (DMP), a credit counseling agency or debt management company works as a third party and negotiates with your creditors to reduce your interest rates and monthly payments. A new repayment plan is set up after evaluating your budget and finances. All your unsecured debts are combined into a single monthly payment that you need to send to the debt management company which in turn distributes this payment among your creditors. The amount of this payment is decided in such a way so that you don’t face any difficulties to afford the payment. By sincerely following a DMP, you can achieve debt freedom in 3-5 years.
How a life insurance policy can be utilized to fund your DMP? There are two main types of life insurance policies: term life and whole life policies. Term life policies don’t come with cash value benefits but provide death benefits. In contrast, buying a whole life insurance policy can help you enjoy both cash value benefits and death benefits. For this simple reason, whole life policies come to you at a higher cost. If you want to take out a loan to finance your DMP, you can easily do it with a whole life policy. Whole life policies have become quite popular due to the cash value accumulation benefit.
When you borrow from a whole life policy, the loan proceeds can be used to finance the payments for your DMP. Here you’re using your whole life policy as collateral. You can often borrow a loan of up to 90% of the accumulated cash value of the whole life policy. In this way, your whole life policy can really work as an outstanding solution to eliminate your debts.

Stock Markets Hold Steady

2009-10-04T23:23:00.000-07:00

Stock Markets Hold Steady

http://news.yahoo.com/s/ap/20090914/ap_on_bi_st_ma_re/us_wall_street;_ylt=Ah2L_82GTvo9J91Xovm8V9WyBhIF;_ylu=X3oDMTJmdXY0M2xiBGFzc2V0A2FwLzIwMDkwOTE0L3VzX3dhbGxfc3RyZWV0BGNwb3MDMQRwb3MDMgRzZWMDeW5fdG9wX3N0b3J5BHNsawN1dGlsaXRpZXNoZWw-

A year ago was that fateful day when the Dow crashed 500 points dragging down with it indexes across the world. That was due to the fall of Lehman Brothers. A year on, the markets are holding steady despite disturbing news such as the US decision to impose additional tariffs on import of tires from China.

The major indexes have seen more than a fifty percent increase in the past six months. Analysts therefore believe that the markets are behaving prudently, not getting overexcited, correcting themselves when there has been a prolonged bull run over a few days, but nevertheless maintaining a steady upward tick. President Obama has been warning investors not to be reckless, but it looks like they have learnt some lessons and are behaving in a more responsible manner.

Not A Good Time For Schwarzenegger

2009-09-21T22:59:00.001-07:00

Not A Good Time For Schwarzenegger

http://news.yahoo.com/s/ap/20090828/ap_on_bi_ge/as_japan_toyota;_ylt=Akfa0eJRTnMVwefbmznYeoiyBhIF;_ylu=X3oDMTJrbnFnYm03BGFzc2V0A2FwLzIwMDkwODI4L2FzX2phcGFuX3RveW90YQRjcG9zAzUEcG9zAzIEc2VjA3luX2hlYWRsaW5lX2xpc3QEc2xrA3RveW90YWNsb3Npbg
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On the one hand, California Governor, Arnold Schwarzenegger has scheduled a garage sale to raise some money to run his government. On the other hand, he and his state got the bad news that Toyota is shuttering its plant at Fremont. This plant which was a 50:50 joint venture with General Motors employed 4,600 people. It had been on notice ever since GM withdrew from the joint venture, but optimists had been hoping that Toyota would not shut down the facility.While economists and the administration keep referring to indicators which show that the grip of the recession is loosening, the reality for those facing a lay off is quite different. For these 4,600 people, the nightmare is just beginning.

Auto Sales Expected To Drop After Cash For Clunkers

2009-09-06T22:52:00.000-07:00

Auto Sales Expected To Drop After Cash For Clunkers

http://money.cnn.com/2009/08/24/autos/clunkers_what_now/?postversion=2009082504

With the end of the highly successful cash for clunkers program aimed at boosting US automobile sales, car dealers will find that they have a lot of idle time with neither inventories nor customers likely to be visible over the next couple of months. The US transport authorities have so far received 625,000 clunker applications seeking a total of $2.58 billion. Auto sales are expected to slide down to levels witnessed in May as most of the dealers do not have any inventories. Moreover the demand for new vehicles is also expected to slide with most of the consumers taking advantage of the cash for clunkers program. Meanwhile several automobile companies have announced production increases and introduction of new shifts to meet the demand from dealers to replenish their depleted inventory levels.

US Consumer Credit Continues To Fall

2009-08-23T23:10:00.001-07:00

US Consumer Credit Continues To Fall

http://online.wsj.com/article/SB124967184264015059.html?mod=googlenews_wsj

US consumer credit continued to decline for the fifth consecutive month in June this year indicating that the overall economy remains weak for the time being. According to data released by the Federal Reserve, consumer credit outstanding declined to a seasonally adjusted annual rate of 4.9% to $2.503 trillion. Although several positive signs have emerged in recent weeks, consumers are opting to save more in the wake of continued increases in layoffs and the grim employment scenario. The level of consumer credit in June declined by a higher than expected $10.3 billion, the fifth consecutive decline. Meanwhile the revolving credit also continued to decline and stood at $917 billion, down by $5.3 billion.

Fed Outlines New Rules For Borrower Protection

2009-08-12T23:00:00.001-07:00

Fed Outlines New Rules For Borrower Protection

http://online.wsj.com/article/SB124837547483376651.html

The Federal Reserve has proposed a new set of rules aimed at protecting consumers from mortgage and home equity loans related problems. The proposals call for greater disclosures while banning controversial payments to brokers to lure customers to take high interest loans. The new set of rules comes at a time when the Obama administration and several Democrats have proposed to remove Fed’s consumer protection authority and place it with a new regulatory agency. In its new set of rules, the Federal Reserve seeks to bring in more clarity and streamline the information structure. The lenders will be required to provide in great detail the cost structure, information about how borrower payments can change and the calculation of the APR. The proposals will be finalized after receiving public comment about them.

Fed Says US Unemployment To Hit 10% This Year

2009-07-28T22:24:00.001-07:00

Fed Says US Unemployment To Hit 10% This Year

http://www.digitaljournal.com/article/276018

The unemployment levels in the US are expected to remain high over the next two years and hit 10% in the current year itself, according to Federal Reserve officials. This is likely to increase the pressure on Obama administration to take further remedial steps to bring the US economy out of the woods. Eleven of the 17 Fed governors and Regional Bank Presidents expect the country’s unemployment rate to rise to 10% or higher in the final three months of 2009. The continued rise in unemployment is attributable to the cutbacks in factory production. Most of the governors also expect the inflation to rise by 1% to 1.4% and believe that the US economy will take a long time to return to the path of sustained growth.

5 More Banks Got Bust

2009-07-12T22:52:00.000-07:00

5 More Banks Got Bust

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCbHA.m7rikc

With five more banks closing shop, the tally of failed banks in the US has risen to 45. The recession doesn’t seem to be drawing to an end –unemployment and foreclosures have become the order of the day. The five banks that have sprung the latest bad news are Community Bank of West Georgia, in Villa Rica, Georgia; Neighborhood Community Bank of Newnan, Georgia; Horizon Bank of Pine City, Minnesota; MetroPacific Bank of Irvine, California; and Mirae Bank of Los Angeles. How many more banks will suffer the same fate? Will it be your bank? Mine? We live in fear every day!

Fed Survey Indicates Moderation Of Economic Decline

2009-06-14T23:50:00.000-07:00

Fed Survey Indicates Moderation Of Economic Decline

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/10/AR2009061002249.html?hpid=sec-business

Tight credit conditions and weak demand continue to play havoc with the US economy. According to a survey released by the Federal Reserve, five of its 12 banks have reported that the economic decline has moderated between mid April and the end of May. However, a full fledged recovery in economic activity is not expected to recover until next year. The survey reflects the consensus view amongst economists that the free fall of the economy has started declining. Federal Reserve has been trying hard to bring the economy back on track and in the process has kept its interest rates zero besides buying billions of dollars of government debt and mortgage related securities. Meanwhile the labor market continues to remain weak and the manufacturing activity has declined indicating all is not well yet.

Goldman Sachs Seeks To Repay TARP funds

2009-04-28T00:32:00.000-07:00

Goldman Sachs Seeks To Repay TARP funds

http://www.bloomberg.com/apps/news?pid=20601103&sid=akUoDKWJyxDY&refer=news

US based Goldman Sachs has reported better than expected quarterly results and raised $5 billion by selling shares at $123 per share in a bid to repay the government rescue funds received by it. The company’s robust performance is, however, unlikely to be sustained in the coming quarters. The firm is keen to repay the government funds and operate without any conditions or limits imposed on it. Goldman Sachs’ latest quarter performance is largely driven by profits in fixed income trading. The firm, however is, keen to continue selling low-interest debt backed by the guarantees from the Federal Deposit Insurance Corp (FDIC). The company’s ability to raise the required funds and the willingness to repay government funds is a positive sign and raises confidence amongst the investors.

Making Money From Recession Related Stress

2009-04-13T01:26:00.000-07:00

Making Money From Recession Related Stress

http://www.cnbc.com/id/30140520

The recession has spawned a completely new set of money making options such as buying houses at distress sales or setting up counseling centers for the jobless. One such profession or shall we say opportunity that I see is that of advising people to cope with the recession related stress.
All media is devoting prime space to the subject matter so there is an agony aunt opportunity there. Companies that are firing people again need some kind of counselor to help minimize the trauma and resultant job insecurity for those that are left behind. Given that the unemployment is expected to continue, it even makes sense to consider writing a book, which could deal specifically with recession, related stress!

Housing Sparks Off Positive Trend

2009-03-30T03:19:00.000-07:00

Housing Sparks Off Positive Trend

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/25/AR2009032503102.html?wpisrc=newsletter

With the housing market showing signs of stabilizing, there appears to be hope that things might not get as bad as people were saying they could. Existing home sales went up by 5.1% in February. Also new single family homes increased by 4.7%. While many are attributing the sales to heavy discounting and foreclosures which have led to availability of bargain deals, others are optimistic that this could an indicator that things are finally getting better.

Given that the current economic mess has its roots in the housing debacle, I believe that any kind of economic reversal will be dependent on or accompanied by a housing recovery. So, good news for the home sales market is probably good news for the economy as a whole. With some luck, this trend will continue in the coming months.

Treasury’s Home Affordable Plan

2009-03-16T00:04:00.000-07:00

Treasury’s Home Affordable Plan

http://www.bizjournals.com/orlando/stories/2009/03/02/daily40.html

The US Department of Treasury’s Home Affordable Plan is expected to allow nine million borrowers to stay in their homes. This plan involves creation of a $75 billion loan modification program to allow responsible homeowners to refinance at lower interest rates. Low cost refinancing is expected to result in a significant reduction in the annual mortgage payments of thousands of families.

The plan will help genuine homeowners and not the speculators. As per the plan, lenders can modify the loans by reducing the mortgages to not more than 38 percent of the borrower’s income. The Treasury Department would share the cost with the lenders to cut the debt-to-income ratio to 31%. Loans that have originated before January are eligible for this program while the homeowners whose unpaid principal balance is as much as $729,750 can participate as well.

AIG May Transfer Further Stake to US Government

2009-03-04T06:48:00.001-08:00

http://uk.reuters.com/article/motoringAutoNews/idUKTRE51P1T920090226?pageNumber=2&virtualBrandChannel=0

Troubled insurance giant American International Group (AIG) may have to resort to transferring certain assets to the US government if it fails to sell some of them at attractive prices. The beleaguered company is likely to post report record losses and is trying to raise essential funds to remain afloat and pay back borrowed funds. The company is trying to sell off stakes in American subsidiaries besides several of its Asian assets but the worsening economic condition is playing spoilsport. If successful in doing this, the company will have adequate resources to continue operations. AIG may also have to resort to conversion of government preferred stock into common shares if the company fails to raise the desired funds.

Weekly Reporting For Banks In Europe

2009-03-04T06:46:00.000-08:00

http://www.nytimes.com/2009/02/11/business/worldbusiness/11ecofin.html?ref=economy

European banks that will receive help from the government to shrug off the toxic assets from their balance sheet may have to report to their national authorities every week regarding the value of their portfolios. The European finance ministers will give guidelines allowing the government to use several options for dealing with the bank debt. The European Union leaders will take their final decisions based on these guidelines.

Joaquín Almunia, the monetary affairs commissioner of European Union, said that the guidelines for government programs to purchase bad debts from the banks should be produced in a couple of weeks. There will be more than one model and the government would be free to choose the one that suits them, the best.

Thanks IBM

2009-03-04T06:45:00.000-08:00

http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches-012109.aspx?icid=dispatch_090121

It is not a very happy situation that President Obama is in, right now. But IBM has provided a ray of hope. By reporting to have earned $4.4 billion at the rate of $3.28 per share, in its fiscal fourth quarter, the tech giant has shown a 12% increase in its sales in one year. It had reported an earning of $2.8 billion, or $2.80 per share, in 2008. Wall Street is delirious with joy.
What’s more, IBM says that it hopes to do even better as it expects to earn at least $9.20 per share in the year 2009. With such optimism from them, the stocks are already showing an upswing.
For us too, this is an opportunity to say to them, ‘Good work and best of luck, guys’.