Insurance Archives - Foreign policy

What is a Debt Trap and how to Prevent it?

Published on January 15, 2021

You will fall into debt if you do not pay your bills on time and you are charged additional reminder fees and default interest. The longer you postpone billing payments, the deeper you fall into debt. The most common reasons for over-indebtedness include:

26% unemployment
9% illness
9% divorce
11% consumer purchases
9% failed self-employment

Debt trap with loans, credit card, car leasing

Often people get caught in a spiral of debt due to unfavorable loans or credit card conditions. Many borrowers do not read the terms or do not take the time to understand them. In the event of an unexpected financial breakdown, it ultimately turns out that the loan agreement is not as flexible as expected. For this reason, it is always important to agree on the best loan agreement terms possible. If you fail to consider these two points when choosing a loan, sooner or later you will regret it.

Consider cheaper options

If you pay too much for your loan, it is recommender to refinance. When choosing the right credit card, consider the type of credit card, interest rates, and fees. You can also fall into a debt trap with car financing. Above all, you should make sure that you do not choose long terms for the car loan. Terms of several years result in high interest payments even if you no longer use the car.

Debt trap – insurance

We often take out an insurance policy once and then don’t touch it again. If an insured event occurs, we suddenly find out that our insurance does not cover the damage or that we have to pay a high deductible. This is not an uncommon scenario, so be well informed about the insurance conditions. Weigh up whether your insurance makes sense and under what conditions you can terminate it. If you want to optimize your expenses, insurance is definitely an area that you should look at separately. You may be able to negotiate better insurance conditions with another provider and thus lower the price.

Debt trap – house

Land tax, household expenses, and mortgages represent a significant amount of money. Gas, electricity, and water are expenses that are billed monthly or quarterly. It is important that you always have an overview of these costs. You should be aware about your consumption from energy suppliers and other costs in order to be able to plan any additional payments. This will protect you from unexpected expenses and give you time to save money for them.

Cell phone debt trap and entertainment

Young people in particular tend to spend too much money on cell phones and entertainment. You should definitely consider whether you actually need the latest mobile phone or the most powerful iPhone. Making calls can be just as expensive. The comparison of products and tariffs is crucial here. Check whether the expenses for entertaining the children can be reduced. Are subscriptions like Amazon Prime or Netflix really necessary?

How can the debt trap be avoided?

Make a budget. Even if this task involves a certain amount of effort, it will help you to keep a better overview of your income and expenses. It is important to update this budget regularly. Household book apps are particularly suitable for this. With the help of these applications, you can document your income and expenses on your mobile phone at any time. So you always have an overview of your finances.
Build up financial reserves. Nothing is more uncomfortable than when you have an unexpected expense and you have to overdraw your checking account. Overdraft facilities are one of the most expensive loans and should only be used at short notice in urgent cases. If you put some money aside each month and possibly even invest it, you can save the interest on your overdraft facility.
Increase your earnings. Take up a part-time job or increase the scope of your work with your current employer. If you do an excellent job, you can even request a raise, which will increase your earnings.
Pay your bills on time. You should always strive to pay all bills on time. If you do not do this, you may be charged additional reminder fees and default interest. This increases your overall costs. If you notice that you cannot pay the invoice on time, get in touch with the creditor, and extend the payment term or ask for a deferral. This is definitely a better strategy than constantly putting off the unpaid bill.
Never pay off your old loan by taking on new loan. Many people believe that when you replace an old liability with a new one, it improves their financial situation. Not correct. Debt rescheduling is only suitable if you can borrow the new capital on favorable terms. The total cost of rescheduling should be calculated separately.
Cancel subscriptions. Cancel subscriptions that you are not using. Often you get fitness or other memberships that you hardly use. Take a look at your bank statement and cancel subscriptions that do not bring you any added value.
Make a shopping list. Before you go to your preferred supermarket, you should always make a shopping list. The reason for this is that you are influenced by advertising in the supermarket and ultimately buy more than you intended. Spontaneous purchases can increase your bill by up to 20%. If you have a shopping list with you, you can orientate yourself on the products that you actually need.
Avoid expensive consumer goods. Of course, you should treat yourself to something from time to time. Regular shopping in luxury stores should be avoided if you want to optimize your budget. Buyers should endeavor not to borrow money to purchase consumer goods.

Admit debt and weigh options

Sooner or later you will have to deal with your debts. This is important in order to evaluate the situation and to be able to take improvement measures. First of all, try to weight in payments and expenses. Talk to your credit company and ask them to postpone your payments. This can give you some time to save money without going into debt. If you have lost track of your debts, it is advisable to get in touch with the creditors to find out about your outstanding debts. Anyone who has financial problems and is in debt should seek debt advice in their area. This helps the debtors to take measures to avoid falling further into the debt trap. If you receive mail from debt collection companies, you should definitely have it checked by the debt counselor and not sign any documents. Always keep track of your finances, save money, invest your capital and plan ahead. To find out more, follow this site.

Should I Buy an Electric Vehicle?

Published on January 9, 2021

Uncategorized

Millions of people throughout the world now drive an electric vehicle (EV). That number is expected to rise in the coming years, as people ponder whether their technology, features, and benefits make them worth their while. Given that everyone’s needs are different, choosing a car to suit your lifestyle can require a bit of research. Could an electric vehicle be right for you? The following information may be worth factoring into your decision.

Running Costs

Some EV owners have reported spending just a quarter per mile of what they would spend on a petrol-powered car. However, the cost savings can be higher or lower, depending on your electricity costs. For example, someone using solar energy to power their home and car could make even more savings than someone accessing power entirely from the grid. If your electricity company offers lower rates at certain times of the day, taking advantage of these rates may also put more money back in your wallet.

Overall Costs

Regarding running costs, electric vehicles are leading the way. As it turns out, they are also leading the way in Total Cost of Ownership (TCO). A report compiled by the International Council on Clean Transport (ICCT) compared the costs of a fully electric VW Golf to plug-in hybrid, petrol, and diesel versions in five European countries.

In the report, the costs associated with the vehicle purchase price, tax, and fuel were examined. Over four years, EVs were cheaper in all five countries included in the study – Norway, Netherlands, France, UK, and Germany. The price difference in Norway was the greatest, with EV ownership at 27% cheaper than petrol, diesel, and plug-in hybrid vehicles. The lower costs were associated with tax reductions, purchase price subsidies, and less expensive fuel costs.

EV Insurance

Insurance is something that many people factor in the decision-making process when purchasing a new vehicle. Not everyone is aware of whether their insurance even covers an electric car. When requesting car insurance quotes from various companies, it pays to make it clear that you own an EV. You can visit this site for car insurance quotes. However, there shouldn’t be too many differences between an EV policy and a petrol or diesel-powered policy.

You can still expect options like collision insurance, medical payment coverage, liability coverage, comprehensive coverage, and personal injury protection. However, what’s also worth considering is your home insurance. If you have installed a vehicle charging station, it can be worth phoning your insurance agent to advise them as you may require additional liability coverage.

Maintenance Requirements

Mechanical bills for petrol-powered vehicles can be astronomical. The complicated makeup of internal combustion engines means any number of things can go wrong at any time. However, even the coolest electric cars don’t come with substantial maintenance costs. They tend to feature electric drive trains with very few moving parts. Tires, brakes, windscreens, wiper blades, and washer fluid are often the extent of your duties. The batteries may require repairs and replacement, but they can last several years before you need to invest in a new one.

Options

When the first EVs hit the market, there weren’t too many options for everyday consumers to choose from. Now, though, you can fit almost any vehicle with an electric power-train to turn it into an EV. From buses to bikes, trucks to trains, you should have no problems choosing an EV to suit your needs.

You can even purchase hybrid EVs that operate with a combination of an internal combustion engine and an electric engine. With a hybrid, you can enjoy superior fuel efficiency while also emitting less carbon dioxide into the environment.

Fun Driving Experience

Electric cars are high-performance vehicles, and they are becoming more advanced by the day. With those advancements comes some outstanding benefits for drivers, like an incredibly quiet driving experience. Unlike a petrol or diesel-powered vehicle, the occupants of an EV can have a conversation without having to raise their voice over the sound of the engine. Electric engines are also smooth to run, responsive, and provide incredible torque.

Surprisingly, that fun driving experience is also enhanced through preferential treatment across many towns and cities. Given that some businesses offer EV charging stations, parking is often provided to EVs at store frontages. Some cities may even allow EVs to use high-occupancy and carpool lanes, as well as free public charging stations.

Financial Incentives

It might seem strange, but governments sometimes offer tax credits and other financial incentives for people to purchase electric vehicles. Essentially, you’re getting paid to buy a new car. Federal tax credits of up to $7,500 are available for many plug-in hybrids and all-electric vehicles purchased new from 2010 onward. The credit amount is based on the battery capacity, and some models are exempt.

If you’re not eligible for a federal income tax credit, you may qualify for state or local incentives. These vary throughout the country. In California, rebates up to $5,000 on purchased or leased EVs may be available. If you live in Delaware, you may be able to receive a refund on residential and commercial charging stations of between 50% to 75%. It’s always worth asking your local EV dealer about available tax credits when you start browsing their lot.

Advanced Technology

Electric vehicles are at the cutting edge of technology, given that they are so new to the market. While you get to benefit from a fuel-less approach to travel, many other advancements are also bound to capture your attention. Keyless ignition, touchscreens, Android and Apple connectivity, and incredible battery life are just some of the many new features you can expect. The more high-performance and advanced the EV, the more exciting features you can expect to see.

Choosing a new vehicle can be challenging at the best of times, but we’ve now got more options at our disposal than ever before. Given that EVs can save you money and the environment while being insured similarly to petrol-powered vehicles, they may be worth a closer look. You may be surprised at how they not only meet your expectations but exceed them.

6 Dumb Insurance Mistakes Even Smart People Make after a Crash

Published on November 28, 2020November 28, 2020

Insurance

A car accident is never something for which you make a plan. Everyone is well aware that there is a good chance they will be involved in at least one accident at some point in their life. The hope is always that when that day comes, you only suffer minor damages. Some people may do some research, but nobody is ever really prepared. After an accident, you will likely be disoriented, which makes it quite easy to make one of these six common mistakes.

When going up against an insurance company after an accident, you are at a disadvantage on many different levels. You are quite possibly injured and not in your best frame of mind. There is a good chance this is your first accident, while the insurance adjuster does their role every day. The insurance adjuster also has specific training in trying to trick you into making a mistake that devalues your claim.

Here we present you with six of the most common mistakes that people make when dealing with an insurance adjuster after an accident and how best to avoid them.

1. Filing an Insurance Claim Too Quickly

When involved in an accident, you are going to want to exchange insurance information with any other drivers involved in the crash. Learn more about the documents you should always have on you when driving, which are your driver’s license, car registration, and proof of vehicle insurance. After the crash, if the other driver was at fault for the accident, you are going to want to file a claim with their insurance.

A problem that many drivers face is that they file the claim too quickly. There is a statute of limitations on filing a claim, so you can’t wait forever. However, that time period is typically years, not days. When drivers file a claim too quickly, it often comes back to bite them. They later realize that the claim didn’t come anywhere near covering all of the costs that they accrued from the accident.

Many serious injuries are not immediately diagnosed after an accident. It can take a few weeks before all of the damage that has been done, is fully uncovered. Those who filed too quickly may find that they have missed the chance to get these other injuries covered.

Insurance adjusters are aware of all of these things. That is why, if they know their client is at fault, they may contact you on the day of the accident, before you get in touch with them.

2. Accepting a Settlement Offer Too Soon

Often an insurance adjuster will offer you a settlement the first time they speak to you. Never accept that first offer and do not engage in discussions about counteroffers. The initial offer is typically far below what you can get if you aren’t overhasty. You have no way of knowing the full worth of your claim so early in the process.

In addition to medical expenses that have not presented themselves yet, there may be many secondary costs like lost wages or pain and suffering costs.

3. Giving a Recorded Statement

An insurance agent is likely to push you for a recorded statement of the incident. They will claim that the purpose of this is to help in determining liability. However, the true intent of the statement is to trick you into saying something that you shouldn’t. They will ask leading questions and try to get you to say things that they can use against you to devalue your claim.

Don’t ever give an insurance adjuster a recorded statement. Politely decline and end the conversation. The less you talk to an insurance adjuster in general, the better your position.

4. Posting on Social Media

Social media has become a huge part of the world in which we live. Many people post all about their lives on one platform or another, so, of course, they would post about a big car accident in which they were involved. However, a seemingly harmless post can have devastating effects on your insurance claim. Your words and photos can potentially be used to devalue your claim in a variety of ways.

After an accident, avoiding social media altogether is going to be your best course of action. At the very least, you should switch all of your privacy settings to the highest level. There have been cases where private accounts were opened to the court, but those are very rare. To be on the safe side, though, a social media blackout is the way to go.

5. Giving Authorization for Releasing Medical Records

An insurance adjuster will often request access to your medical records so they can see the files for the damages you are claiming from the crash. This request may seem innocent enough, but it is far from it. They will use your authorization to comb through all of your medical records. Every single item in your medical history, going back to when you were born.

The purpose of this search is to find anything they can use against you. They will look for anything that might suggest a preexisting condition that contributed to your injuries and undervalue your claim in this way. Deny any requests for medical records.

6. Not Hiring a Personal Injury Lawyer

Choosing not to hire an attorney can be an incredibly costly mistake. Many people think that hiring a lawyer will cost too much money, and insurance adjusters will often try to nurture this idea. However, most personal injury lawyers will work on a contingency basis, which means that they don’t get paid unless you do.

Some people still think that the amount of their eventual fee will eat away far too much of the money gained in the settlement. In reality, people who hire an attorney often get several times the amount they would have gotten without one. So, even after their fee, the client has a much higher settlement amount.

Hiring a qualified personal injury attorney helps to level the playing field. It is no longer a professional insurance adjuster against an amateur victim. Instead, it’s two pros giving it their all. Hiring an attorney has the added benefit of giving you the peace of mind of knowing there is someone taking care of things with the insurance company and that you don’t have to. You can just sit back, relax, and focus on your recovery.

When Workers’ Comp Won’t Pay: 3 Steps to Take

Published on November 28, 2020

Business

A workplace injury is never ideal. The silver lining, though, is that in the United States, in every state except for Texas, employers are required to carry workers’ compensation insurance. Workers’ comp is an insurance that protects both an employer and an employee in the case of a workplace injury.

Workers rely on this safety net for protection, so when a claim gets denied, your safety net is cut, and you continue to fall towards the ground. Fortunately, you are not without options. There are several steps you can take to appeal your claim denial and have a trapezist swing in at the last moment and pluck you out of the air before crashing to the ground.

How Does Workers’ Comp Work?

Workers’ compensation is in theory, a hassle-free way for an injured worker to get compensation for their injury so that they can pay their medical bills, rest, recover, and hopefully get back to work. Workers’ comp protects employers from having to defend themselves in court cases every time that an employee gets injured at work.

For large companies in dangerous industries like construction, workers’ comp provides protection from countless hours of litigation every year. Without workers’ compensation insurance, between the money spent on defense and the eventual payouts to workers, many companies would not be able to survive the financial toll of employees getting injured.

Normally in a workers’ compensation case, immediately following an injury you would go to your supervisor to report the incident. Obviously, if the injury is severe enough, you would first go to the hospital and then notify your employer after you have been treated. Once informed, your employer should give you a claims form to fill out.

If you weren’t rushed to the hospital, you should receive a recommendation for an approved physician to treat your injuries. After you submit your claim, you will be contacted by a representative of your company’s insurance. After this, your claim should be approved, and you should be able to start receiving your workers’ comp benefits. These benefits should cover your medical costs and partial costs for lost wages.

In cases of a severe injury, where you are unable to fully recover and cannot return to work afterward, you should receive a large settlement payment as well. This money can help cover the cost of future lost wages and other secondary expenses.

Unfortunately, things don’t always go as they should. Workers’ comp claims can be denied for a variety of reasons. Sometimes, claims get denied for legitimate reasons. Other times, the denials are completely bogus. Most of the time, they fall somewhere in-between.

Some possible reasons that your claim may be denied include if the insurance company believes you:

Were under the influence of drugs or alcohol
Were fighting
Were playing games rather than working
Suffered your injury away from work
Exaggerated your injury
Failed to inform your employer of your injury in time
Failed to file claim papers on time
Did not receive medical treatment
Were not treated by an approved medical provider
Missed doctor’s appointments
Failed to follow medical advice
Were injured as the result of a preexisting condition

How Can I Appeal My Claim Denial?

In a situation where your claim has been denied, you are most likely going to want to appeal the decision and to continue fighting to get the compensation that you deserve. There are five main steps you can take to continue fighting your claim denial.

Step One: Hire an Attorney

Filing an original workers’ compensation claim is something that most workers can manage on their own without a problem. However, when it comes to appealing a denied claim, bringing in an experienced workers’ compensation attorney to help make sure your case is strong is always a good idea. With the guidance of a lawyer, it is possible to get a personal injury payout for serious work injuries. Learn more about hiring a workers’ compensation attorney.

Step Two: File an Appeal

When a workers’ comp claim is denied, you will receive a letter that will contain information about why your claim was denied. This letter should also contain information about when and how to appeal the decision, along with a notification of the deadline to appeal. Make sure to file your appeal before the deadline, as failure to do so potentially forfeits your claim.

Step Three: File a Workers’ Comp Complaint

If you have evidence that your claim was denied due to fraud, administrative error, or other irregularity, you can request a complaint form from your state’s workers’ compensation officials. A valid complaint can help your case and possibly improve your settlement amount.

Step Four: Request to Reopen a Workers’ Comp Claim

Even if your appeal has been denied and your complaint is determined to be invalid, you are not necessarily out of options. It can still be possible to have a closed claim reopened, sometimes years after the claim has been finalized. In some instances, you may even reopen a claim that was not denied to receive further support beyond the initial ruling.

Some common reasons to reopen a claim include:

New evidence that proves the validity of your claim
New evidence that shows your original award amount was unfair
New evidence proving an administrative error that affected your claim
New evidence of fraud
A return or worsening of your injury

Step Five: Request an Administrative Hearing

When you don’t feel like you are going to get a fair decision from the insurance company, you can request an administrative hearing. An administrative hearing puts your fate at the mercy of the administrative judge rather than the insurance company. This is often a welcome path for those who file workers’ comp claims, as insurance companies are notorious for doing everything they can to pay out as little as possible.

Should you end up requesting an administrative hearing, if you haven’t already hired a workers’ comp attorney, now is the time. You can bet that an insurance company will be bringing their full legal might against you to try to defeat your case and hang on to their money. Attempting to take on these highly experienced professionals without one of your own is like bringing a knife to a gunfight.

A Denial Can Be Devastating

Having a workers’ comp claim denied can leave you feeling hopeless. When the injury you suffered on the job is severe, you are already left with so many question marks in your life and possibly face many life changes. Being told you will not receive financial compensation to help you deal with everything can be the straw breaking the camel’s back.

It’s important to know all of your options when faced with a situation like this so that you have all of the tools you need to fight this decision and get the compensation that you need and deserve.

Why your HOA’s Disaster Strategy MUST Include Insurance

Published on November 5, 2020

Insurance

Having your own home, no matter if it’s a house or an apartment, comes with a lot of challenges, risks, and responsibilities. As a homeowner, you need to always be careful about what’s happening inside, is there any risk of gas leaking, floods, fires, and how to prevent them. But, at the same time, we all know that we can’t stop some things or fight against them, especially when it comes to natural disasters. But, that doesn’t mean you don’t need to be cautious and try to think about some important things in advance, even though they may never happen. According to farmersbrown.com, you can let the agency create a plan and strategy for your insurance coverage, and get the best service possible when it comes to coping with disasters and what’s left behind them.

Call of Duty

In the aftermath of a disaster, your Homeowners Association (HOA) is duty-bound to deal with all immediate hazards within its jurisdiction. And, in the long term, to restore all damaged common areas to their pre-disaster state. This may place considerable strain on your HOA’s finances. An insurance policy may provide the much-needed funds to implement your disaster response strategy, finance clean-up operations, and pay for the restoration of affected common areas. So, having this type of insurance is only a prevention step, especially if you live in a risky area, and you are sure you want to avoid all the unpleasant things that come in the catastrophe aftermath.

HOAs managing neighborhoods face different risks than those managing condominiums. Though the types of insurance may differ, both will be left vulnerable without coverage.

Immediate Aftermath

Your HOA is responsible for disaster management during and after an incident within your jurisdiction. Usually, this will involve coordinating rapid responses to threats and dangers, including relocating the people to safer places, making sure professionals are around so they can control the situation, and so on. But, you will also need to pay attention to other considerations, including:

The rapid availability of emergency funds.
The extent of responsibility to affected owners.

How do these expenditures relate to insurance? Insurance policies may take some time to payout, so you will need a short-term bridging solution. In case of an emergency, you can’t expect the agency to complete everything for you. They are there only to ease the expenses, and to make the whole process easier for those who suffer. But, you should have those services included in your policy, and that comes with some fees, and that’s why most of the people are taking the basic plan, and they are surprised to hear that it doesn’t cover every disaster result. That’s one of the reasons you should be asking a lot of questions to the agents, and make sure you are getting a complete service, not just some parts of it.

Emergency Expenditure

Consider the types of emergency expenditures following a flood? Several access roads are covered in debris, trees have fallen over and a damaged substation has left 15 homes without power. Contractors are in high demand and the only backhoe available is two counties away.

Daily transactions funded out of your operating account could soon bleed the account dry, and the next thing you know, you are running on reserve funds.

In a situation like this, the future payment of an insurance policy can be used to take out a short term loan.

We can use the same example with any disaster possible, no matter what its nature is. Every day of our lives is a risk, and the current pandemic showed us that no one can stand above nature and try to over smart it. In the world, there are a lot of examples of forest damages, or changing the river’s routes, so there can be build houses and apartments – but sadly, most of the time, nature brings back all the things to normal, damaging those buildings and houses. That’s one of the reasons why we face a lot of risks of catastrophes because someone in the past tried to go against nature. Of course, you are not guilty of that, but when you choose your new home’s location, it’s always better to check the natural conditions in the area, even for decades ago.

Affected Owners

Some HOAs are charged with providing emergency assistance to affected members. This could range from simple acts like helping them find accommodation for the night, all the way to longer-term assistance.

If your HOA is managing condos, you will need to pay special attention to this provision, as it could amount to considerable sums of money, depending on the extent and nature of the damage.

Contractors

Once the immediate hazards have been dealt with, you will need to start rebuilding damaged common areas, including in some cases damaged condos.

Some contractors will be willing to start work while your HOA is waiting for the insurance payment. This can alleviate a lot of potential pressure and avoid strained relations between you and your members.

Without insurance money to back you up, you may find your HOA forced to either increase monthly service charges or postpone much-needed reparations.

Building Code

Your state’s regulations may prohibit you from simply returning structures to their original state, and require that you rebuild them to conform to the latest building codes and regulations.

This is an important consideration when taking out your policy. Be sure to value buildings in order to meet this requirement in the case of a disaster. New codes and regulations can exceed current value by an order of magnitude.

Without Insurance

Without adequate insurance backing up their disaster strategy, your HOA may well find itself facing a new disaster, albeit one of its own makings. So, be responsible and build up that strategy for you, your family, and of course, for the community and people around you.

How to Deal with Paying for Expensive Repairs to your Car

Published on October 27, 2020

Cars

How do you deal with paying for expensive repairs to your car? Of course prevention, maintenance and safe driving are key. Damage from an accident, even a dent or some other type of damage, that it can cost a lot. A lot of people don’t have the money to pay for repairs on their own, and don’t have the skills needed to fix their car themselves. It can feel like there are no options.

Loans

If you want to be able to pay for your own emergency car repairs, then you should look into getting a personal loan. A good way to do this is to get a personal loan and use it to pay for the repairs you need. You will have to take care of making sure you pay off the loan within the time frame that the loan is for. Cash advances usually do not have the most friendly loan terms, so be wary of this option.

The most important thing you should do is make sure you can afford the loan. If you can’t afford the loan, then don’t take it. If you have bad credit, you most likely don’t even have this option. Bad credit? Then you have to have enough in your bank account to pay the loan back before they will even think about approving you.

What makes a good loan? Usually a good personal loan is one with a very low interest rate. Look carefully at the loan terms, and make sure that you are looking at the APR, which is the Annual Percentage Rate. A good loan should also come with very flexible repayment terms. If you can get a loan like that like that, then a loan can help you a lot.

The thing to remember about these loans is that you can get one and they actually let you get away with getting more than what you need. Just keep in mind that you could end up paying even more money. Instead, get a loan for the smallest amount possible – not the amount that they approve you for! Don’t take the first thing that comes your way, you may find that there is something better out there for you.

Extended Auto Warranties

If you don’t qualify for a loan, then you may want to check into getting a vehicle service contract. This will help you to repair your car while saving you money at the same time. These are called “Extended Auto Warranties” in most states, and called “Mechanical Breakdown Insurance” in California.

When thinking about getting an extended warranty on a used car, you might have different options – depending on the state that you live in. The criteria for a good extended warranty company are reputation, monthly payment options, and no waiting period. Gogetolive.com is an option that you’ll want to check out.

If you get regular maintenance done on your vehicle, you will end up saving quite a bit of money over time. Safe driving is also important! The warranty companies will charge you a higher amount if your car is involved in an accident. They may also increase the amount for repairs you need to get done.

Insurance

Of course also do make sure you have car insurance on your vehicle. It may seem obvious, but it can help you a lot when you get an accident, if you are insured properly. Most states allow two kinds of insurance coverage: Comprehensive and Liability. Comprehensive coverage is the Gold Standard, with everything covered: Damage to any vehicles or persons comes with some sort of coverage. But don’t forget that you likely have a deductible. Paying that deductible means a large expense in itself sometimes. So read through your policy carefully and avoid running into a big surprise down the road.

With Liability coverage, you are covered for damage to other vehicles – and typically for bodily injury – but not covered at all for your own vehicle. This means you will be entirely responsible for the potentially VERY expensive repairs on your own vehicle. These could exceed the value of your vehicle, or not even be possible.

Even if the other party in the accident is not injured, he can sue you. So as mentioned before, always drive carefully and make sure that your vehicle is properly maintained!

Credit

Have a clean driving record and keep your credit in great shape. You might find that some of the companies will charge you more for auto insurance because of bad credit. Poor credit can cause you to have to pay for some of the repairs that you have to get done. If you have fewer credit options, you are very likely to pay more.

Most repair shops have credit options available, but none are what most would call a good rate. Even if you were able to pay in full for your auto repair, you are likely to be offered their house brand of credit card – with the cashier getting a bonus based on your signup! So beware of this type of credit to keep expenses down.

Make sure that your credit report is checked periodically. Your lenders certainly will! Most lenders will run a credit report once a year. This will let them know if you are still able to make all of your payments and keep up to date with your bills. It will also let them know if any outstanding accounts you have are current. Make sure that you also check your credit report every year. You will want to note any mistakes in reporting, and dispute anything you have a valid reason to dispute. The longer an error is on your credit report, the more difficult it will be to remove.

If you keep in mind a few simple tips, you will be able to save a ton of money on repairs to your car. Car repairs tend to be expensive financial emergencies, but you can get through them with personal loans, insurance, an extended auto warranty, or other credit options.

Relocating for Work in China? Expat’s First Steps

Published on October 15, 2020October 28, 2020

China

China has been attracting people from all over the world, so it’s not surprising some consider moving there. The country is famous for transforming itself from a developing area with millions of poor citizens into a powerful and technologized machine that now produces over half of the overall world’s goods.

So, what do you need when relocating to China for work? What is the cost of living there for a year? Are there any guidelines you should follow during the transition? If you’re an expat and planning to move overseas for a new position, this article will provide you with essential info you should know.

Most westerners moving to China have claimed that getting a job is easier than they expected. The most straightforward job for expats is within the English teaching sector because organizations and educational facilities are always searching for native speakers. You don’t even need to speak Chinese to apply for an English teacher position. But if you’re applying for a manager or engineer position, you need to speak some Chinese to communicate with your co-workers easily.

Without much ado, here are the steps you should follow when you plan a relocation to China.

Visa regulation when moving to China

You need a visa when you plan to move to China for work. Chinese authorities have adopted a new law according to which your visa history impacts the counselor’s decision to issue or renew your visa. You can apply for one of four types of visas when you plan to immigrate to China.

– Chinese working visa. To obtain it, your employer must provide you with a work permit. When you arrive in China, you need to register with the police station in your area and get a residence permit.

– Business visa. Apply for this visa if you are traveling overseas to engage in commercial activities or start a business.

– Chinese study visa. You can choose from two types of visas X1 and X2. Both are created solely for students, so you cannot apply for one and gave up school when you arrive. The X2 visa provides a single-entry to the country, and you can use it for less than 6 months. The X1 allows you to enter the country multiple times and stay longer (during your bachelor’s or master’s program with a local university).

– Chinese tourist visa. To get a tourist visa, you need to prove your hotel reservation and vacation plan and documents to prove you have enough funds in your bank account to visit the country.

Visa regulations are frustrating, and the process can be lengthy (it can take up to 2 months), so it’s best to hire a consultant to guide you through the process.

Find accommodation

As everywhere around the world, the rental and housing prices fluctuate throughout China. If you’re relocating alone, a one-bedroom apartment is more than enough, and it can cost around $300 monthly. But if you’re moving to China with your family, expect to pay somewhere between $800 and $1000 per month for a three-bedroom apartment. The average price per square meter to buy property in China is $7000 (in city centers).

Most rentals provide TV and Internet access, but to ensure you browse the Internet securely and the Government doesn’t surveil your activities, get a VPN. Visit this page to check the top of the best VPN services in China. As an expat you may want to use websites like Facebook, Instagram, or Netflix, but China restricts its residents’ access to specific websites, so you need a VPN to remove geographical restrictions on content.

The cost of living in china isn’t high, and the average salary for an expat is from $1700-2500. Relocating to China for work can be an opportunity to save money. Most foreigners prefer living in big cities like Tianjin, Shanghai, Guangzhou, or Shenzhen.

Apply for a job

As you already know, China is the world leader in manufacturing, having the highest number of factories worldwide. As an expat, you can easily find a decent job in any industry, from agriculture to healthcare, IT, mining, and textile. Even if most Chinese are qualified in their profession, the country is actively attracting foreigners looking for a well-paid job in sales, finance, marketing, or teaching. As stated before, most expats occupy English teaching positions in China, and if this is the career path you want to follow, you need a TEOFL certificate in advance to meet educational institutions’ criteria.

If you’re an entrepreneur who wants to start a business in China, you’d be happy to find that the country is rich in talented professionals.

Even though the country provides expats with many job opportunities, knowing how to find the right position for you is essential. To get a job in the principal cities, you need at least two years of experience after obtaining your university degree or PhD. If you lack experience, relocate to a smaller city where the job requirements are less strict. You can also apply for an internship with an international company to gain experience.

Healthcare

China’s national healthcare system operates under the state social insurance plan, but it’s not free. This means you can obtain basic insurance coverage without too much hassle if you’re willing to pay. In general, health insurance covers most medical issues and procedures, but it’s recommended always to ask the medical expert you visit if you must reimburse the procedures.

Suppose you’re suffering from a chronic condition. In that case, you may not find the Chinese healthcare system suitable to treat your medical problem because the public system isn’t as developed as the ones from European countries, the USA, or Canada. Chinese people still appreciate the benefits of traditional rituals and healing practices. So, if you use a specific treatment scheme to alleviate your symptoms, check ahead if you can stick to it once relocating to China because the local doctors may not be able to prescribe you the same drugs because they lack from their healthcare system.

Check with your employer if they offer any type of health insurance, and what conditions it covers because you may need to purchase an additional policy.

How Does the Stock Market Affect Mortgage Rates?

Published on October 14, 2020

Business

If you are about to buy a house, the chances are that you are also about to submit a mortgage loan application. It means that you are exploring different options, i.e., loans and interest rates. After all, these are fixed, meaning that you have to carefully think about how much money you can afford a month.

At the same time, mortgage rates are affected by multiple factors, and it probably is a good idea to investigate these. This way, you will be able to understand what could potentially happen, what changes might occur, and how they could affect your monthly payment.

Well, in this article, we will introduce you to the correlation between the stock market and mortgage interest rates. What is the connection between these two, and what type of effect can they have on each other?

They impersonate the economy

Before we discuss the connection between the stock market and mortgage rates, let’s talk about this. You will probably say that it is completely natural that both of these mimic the economy, but what does this exactly mean?

Well, basically, when the economy is steady, both of these increase. However, when things go wrong, these tend to follow, as it is to be expected, i.e., they fall. But why does this happen? Well, when investors get worried about the health of finances and the economy, they tend to move their money and invest in bonds, since they can rest assured they will get their funds back. As you might know, there is no such thing when it comes to the stock market.

What is the influence of the bond market?

Even though the stock market and interest rates aren’t closely connected, the same cannot be said for the mortgage rates and bonds. We have already explained that the investors tend to move their money to the bond market, and when this happens, as you can assume, the price of the bonds increases and the yield decreases. This is the main rule of the law of demand.

This bond yield is the standard for most of these rates, some of which are credit card, mortgage, auto loan rates, and so on. So, put simply, when there are many mortgage bonds on the market, the demand is lower, which also means that interest rates are lower. Nevertheless, if the number of bonds was to stay the same, and the demand was to increase, the interest rates would also rise.

Federal Reserve also plays a role

The most important task of the US Federal Reserve is to keep an eye on the inflation, that is, to ensure that it is stable. If inflation were to rise significantly, without control, it would decrease the value of the American dollar internationally. So, to prevent this from happening, they monitor the mortgage bond market and are always prepared to intervene if they noticed any signs of trouble.

What do they do? Basically, they lower the mortgage rates. They do this by buying a lot of bonds to decrease interest rates. On the other hand, if they find it necessary, they sell these bonds, and therefore, raise the Fed Funds rate, i.e., the rate at which they lend the money to the banks.

Applying for a mortgage

Now that we have explained the main factors that affect the interest rates, let us give you some practical tips on how to find the best loan for you. Obviously, first things first, you have to do thorough research, so our initial advice is to visit the pureloan website to explore some of your options.

The next thing you have to do is set a budget. If you want to get approved on your first try, you have to be realistic, and therefore, apply for a reasonable amount of money. The lenders determine this amount by looking at your debt-to-income ratio. Basically, they calculate what percentage of your monthly income you spend on paying off debts. There are a few rules here, so you should definitely contact the lender you have chosen to help you with this calculation. What’s more, if you are not sure about the funds you could get, you should ask them to do this calculation, to figure out what your budget should be.

If you are told that you cannot apply for a big loan, or at least the one you need to purchase the house you want, there are two main things you can do to boost your debt-to-income ratio. Naturally, your first option is to increase your monthly income. You can start looking for a better-paid job, work on getting a promotion, or think about different ways to earn some money on the side. On the contrary, this isn’t an option for many people, so most of them opt for reducing their debt by paying off different loans they already have before applying for the mortgage.

Furthermore, don’t forget about the credit score. The better your credit score is, the better interest rates you will get. Yes, this can save you thousands of dollars, so you should do your best to improve it. Basically, you can start by paying off the debts, paying all your bills on time, and also avoid opening new accounts, but instead, managing the ones you already have.

In addition, there is another thing you can do to lower your monthly payment, and it has nothing to do with the interest rate. When you get approved and receive the loan, you will also have to pay for the private mortgage insurance. Nevertheless, you can eliminate this expense by having a down payment of at least 20%. If you don’t have any other debts and expenses, you should try to save as much money as you can for this payment. Just try to calculate how much you will be saving in the future, and you will understand that denying yourself some small pleasures now can be quite beneficial in the time to come.

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