More people are getting motivated to save money because the online banking options are more appealing. People have found that they can open a checking account at an online banking site and enjoy all of the conveniences that they already enjoy at a land-based bank in their local community. People can enjoy online savings too when they do their banking online because online banking institutions do not charge any fees to open an account with their firm.
The online banking options all people to get cash whenever they need it too. People have the option of paying an annual fee for a name brand credit card, or they can use the debit card awarded when the online banking account was established free throughout the year. People are finding that they can use the debit cards to withdraw cash from any automatic teller machine in the country and the available cash limits are very generous and allow people to earn money at the same time.
The small fees charged by ATMs add up over a year and some online banking options will reimburse customers for that expense if it is one of the options they select when the account was opened. The online banking options allow banking customers to establish checking and savings accounts that accrue interest at rates that are above what is offered by land-based banks. Online banking customers do not have to worry about idle cash because the online banking options are constantly working on their behalf to make their money and businesses grow.
People enjoy the convenience of making purchases online with the online banking options they have established. Since all funds in an online bank are fully insured, online banking customers know that is safe and secured 24-hours a day. Online purchases are protected by many Laws, and the threat of any fraud occurring is very minute. Online banks are just as safe as the commercial banking institutions around town because encryption software protects personal information provided online.
The best online banking options can be enjoyed all the time because the online banks never charge fees for the online banking options they offer. People can pay bills online and not worry about paying late fees ever again. They can use the online banking options to save money in savings account and through investment portfolios. Whichever online banking options are selected, online banking customers know that they will reap greater rewards by banking online. All of the money in any account is assured of growing in size because each account earns a daily interest rate for all money that remains in the account.
Some of the online banking options will help people save for retirement. One of the online banking options allows customers to open certificate of deposits which accrue interest over the period of a year, or in as little as six months. People can build an attractive nest egg through U.S. money market accounts and people can also enjoy using those funds when retirement time finally rolls around. The online banking options allow people to track interest rate averages for CD accounts and make elections online which saves people a lot of personal time.
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Wednesday, November 19, 2008
Sunday, November 16, 2008
Tips in Business Finance Management
In putting up any kind of business, the end goals are primarily profitability and progress. Magnifying your money is the target endpoint. To be able to do such, you ought to focus on a very important aspect of your business- Business Finance Management. Below are some tips that you can follow not just to ensure the sustainability of your company, but to probably maximize its potentials.
1. Raise Money- Lots and lots of it. Businesses need more than sufficient funding. They need funds for the expected expenses, more funds for unexpected problems, and reserved funds for possible beneficial ventures. As such, when you are attempting to look for funds and possible investors, maximize the opportunity. Prepare big time but feasible business propositions. When opportunities for investment and profit knock on your doors, take chances and welcome the chance. However, you ought to grab the risks only after you have carefully examined the possible consequences of your business venture.
2. Acquisition is not always the answer. During business ventures, there is always plenty of room for additional expenses. Your first budget allocation for a certain expense may not be enough. You may need additional equipment and materials that require you to make unexpected expenditures. In such cases, note that buying what you need is not the only option. Look for alternatives such as renting or leasing the equipment you need. However, do take note of the rental or leasing fee versus the acquisition expenses, in accordance to your time frame for equipment usage.
3. Inform the concerned. In business ventures, you ought to keep pertinent parties aware of whatever is happening in your business. Pertinent parties refer to those who will be affected by the profitability or fund inadequacy in your business. These parties include your bank, your investors, your suppliers, your customers, and even your inland revenue representative. Realize that keeping them informed maintains good business relationships. It may also heighten their concern for your business needs such as additional funds and/or more profitable business deals.
4. Welcome Renegotiations. There are some cases when your investors, suppliers, and customers ask you for renegotiations on your transactions. Be open for such possibilities and options. Avoid limiting yourself to uniform business deals. Recognize that suggestions made by the people you are working with are worth your attention. This will not only help you maintain good business relations with them. Instead, it can open your doors to business opportunities which may prove to be beneficial in the long run.
5. Stick to strict payment and debt procedures. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability. When allowing your customers to go on credit, do a thorough financial check first. Set clear procedures for payment and be sure to follow them, without exceptions. You should also set a specific deadline for each debt. Realize that a service or product on credit is a potential loss for your business finances.
6. List everything. This may be a tedious task but such may prove to be very beneficial for you in the end. Realize that no matter how big or small your business deals are, all of these mirror how you manage your finances and all of these affect the overall outcome of your business venture. As such, you ought to practice proper bookkeeping and accounting.
1. Raise Money- Lots and lots of it. Businesses need more than sufficient funding. They need funds for the expected expenses, more funds for unexpected problems, and reserved funds for possible beneficial ventures. As such, when you are attempting to look for funds and possible investors, maximize the opportunity. Prepare big time but feasible business propositions. When opportunities for investment and profit knock on your doors, take chances and welcome the chance. However, you ought to grab the risks only after you have carefully examined the possible consequences of your business venture.
2. Acquisition is not always the answer. During business ventures, there is always plenty of room for additional expenses. Your first budget allocation for a certain expense may not be enough. You may need additional equipment and materials that require you to make unexpected expenditures. In such cases, note that buying what you need is not the only option. Look for alternatives such as renting or leasing the equipment you need. However, do take note of the rental or leasing fee versus the acquisition expenses, in accordance to your time frame for equipment usage.
3. Inform the concerned. In business ventures, you ought to keep pertinent parties aware of whatever is happening in your business. Pertinent parties refer to those who will be affected by the profitability or fund inadequacy in your business. These parties include your bank, your investors, your suppliers, your customers, and even your inland revenue representative. Realize that keeping them informed maintains good business relationships. It may also heighten their concern for your business needs such as additional funds and/or more profitable business deals.
4. Welcome Renegotiations. There are some cases when your investors, suppliers, and customers ask you for renegotiations on your transactions. Be open for such possibilities and options. Avoid limiting yourself to uniform business deals. Recognize that suggestions made by the people you are working with are worth your attention. This will not only help you maintain good business relations with them. Instead, it can open your doors to business opportunities which may prove to be beneficial in the long run.
5. Stick to strict payment and debt procedures. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability. When allowing your customers to go on credit, do a thorough financial check first. Set clear procedures for payment and be sure to follow them, without exceptions. You should also set a specific deadline for each debt. Realize that a service or product on credit is a potential loss for your business finances.
6. List everything. This may be a tedious task but such may prove to be very beneficial for you in the end. Realize that no matter how big or small your business deals are, all of these mirror how you manage your finances and all of these affect the overall outcome of your business venture. As such, you ought to practice proper bookkeeping and accounting.
Friday, November 14, 2008
Discussion on Progressive Taxation
The United States government taxation system is based off the fundamental progressive taxation theory. Most people don t fully understand the taxation system and question the validity of the system the United States currently has. However, I believe that progressive taxation is the best system for the majority of society.
The progressive taxation system is most evident in the income taxes; the tax is levied at a rate that increases as the quantity of income increases. This system was devised to collect a greater proportion of tax revenue from wealthy people reflecting the ability-to-pay principle. Usually, progressive taxes are the stabilizing force in periods of inflation or recession because the amount of tax revenue changes more than proportionately with the increase or decrease in income.
In an economy where the prices and incomes are rising, the dollar value of tax credits and allowances remain constant. However, as individual income increases, the taxpayer is moved into a higher tax bracket. This means that a greater percentage of their income goes toward taxes. At the same time, the government s tax revenues rise. What does this mean? Simple put, the higher the taxpayer s income, the more money given to the government to spend on programs and strengthen the overall economy. By either reducing tax rates or increasing spending, the government can stimulate or restrain private demand.
There are negative effects to progressive taxation. During inflation, it can actually hurt the people that this system is trying to help by shifting the tax burden to the less able and increasing the power of the government to control the economy. There is no real solution to this. Also, many believe that this type of taxation is punishing the rich for working and earning their money. This may be true to one extent, but a fixed rate for all people will cause more harm than good. Also, the taxpayers on the lower end of the scale pay the recessive taxes that are involved in the American system. So the rich may pay more income tax, the poor equal it out with the recessive taxes. In this system, the taxpayers end up paying for what they use.
Progressive taxation is not a perfect plan. However, under the limits and restrictions that lawmakers have applied to this system, progressive taxation helps the whole society. The proposed tax cut in Bush s plan is more of a tax shift. It will provide tax relieve for the rich and cause the recessive taxes to be increased. This will only mean that the lower end of the tax bracket will be paying the difference. Hopefully lawmakers will see that the Bush s tax cut plan should not be passed and allow for the progressive taxation system to work.
The progressive taxation system is most evident in the income taxes; the tax is levied at a rate that increases as the quantity of income increases. This system was devised to collect a greater proportion of tax revenue from wealthy people reflecting the ability-to-pay principle. Usually, progressive taxes are the stabilizing force in periods of inflation or recession because the amount of tax revenue changes more than proportionately with the increase or decrease in income.
In an economy where the prices and incomes are rising, the dollar value of tax credits and allowances remain constant. However, as individual income increases, the taxpayer is moved into a higher tax bracket. This means that a greater percentage of their income goes toward taxes. At the same time, the government s tax revenues rise. What does this mean? Simple put, the higher the taxpayer s income, the more money given to the government to spend on programs and strengthen the overall economy. By either reducing tax rates or increasing spending, the government can stimulate or restrain private demand.
There are negative effects to progressive taxation. During inflation, it can actually hurt the people that this system is trying to help by shifting the tax burden to the less able and increasing the power of the government to control the economy. There is no real solution to this. Also, many believe that this type of taxation is punishing the rich for working and earning their money. This may be true to one extent, but a fixed rate for all people will cause more harm than good. Also, the taxpayers on the lower end of the scale pay the recessive taxes that are involved in the American system. So the rich may pay more income tax, the poor equal it out with the recessive taxes. In this system, the taxpayers end up paying for what they use.
Progressive taxation is not a perfect plan. However, under the limits and restrictions that lawmakers have applied to this system, progressive taxation helps the whole society. The proposed tax cut in Bush s plan is more of a tax shift. It will provide tax relieve for the rich and cause the recessive taxes to be increased. This will only mean that the lower end of the tax bracket will be paying the difference. Hopefully lawmakers will see that the Bush s tax cut plan should not be passed and allow for the progressive taxation system to work.
Tuesday, November 11, 2008
Tips in Business Finance Management
In putting up any kind of business, the end goals are primarily profitability and progress. Magnifying your money is the target endpoint. To be able to do such, you ought to focus on a very important aspect of your business- Business Finance Management. Below are some tips that you can follow not just to ensure the sustainability of your company, but to probably maximize its potentials.
1. Raise Money- Lots and lots of it. Businesses need more than sufficient funding. They need funds for the expected expenses, more funds for unexpected problems, and reserved funds for possible beneficial ventures. As such, when you are attempting to look for funds and possible investors, maximize the opportunity. Prepare big time but feasible business propositions. When opportunities for investment and profit knock on your doors, take chances and welcome the chance. However, you ought to grab the risks only after you have carefully examined the possible consequences of your business venture.
2. Acquisition is not always the answer. During business ventures, there is always plenty of room for additional expenses. Your first budget allocation for a certain expense may not be enough. You may need additional equipment and materials that require you to make unexpected expenditures. In such cases, note that buying what you need is not the only option. Look for alternatives such as renting or leasing the equipment you need. However, do take note of the rental or leasing fee versus the acquisition expenses, in accordance to your time frame for equipment usage.
3. Inform the concerned. In business ventures, you ought to keep pertinent parties aware of whatever is happening in your business. Pertinent parties refer to those who will be affected by the profitability or fund inadequacy in your business. These parties include your bank, your investors, your suppliers, your customers, and even your inland revenue representative. Realize that keeping them informed maintains good business relationships. It may also heighten their concern for your business needs such as additional funds and/or more profitable business deals.
4. Welcome Renegotiations. There are some cases when your investors, suppliers, and customers ask you for renegotiations on your transactions. Be open for such possibilities and options. Avoid limiting yourself to uniform business deals. Recognize that suggestions made by the people you are working with are worth your attention. This will not only help you maintain good business relations with them. Instead, it can open your doors to business opportunities which may prove to be beneficial in the long run.
5. Stick to strict payment and debt procedures. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability. When allowing your customers to go on credit, do a thorough financial check first. Set clear procedures for payment and be sure to follow them, without exceptions. You should also set a specific deadline for each debt. Realize that a service or product on credit is a potential loss for your business finances.
6. List everything. This may be a tedious task but such may prove to be very beneficial for you in the end. Realize that no matter how big or small your business deals are, all of these mirror how you manage your finances and all of these affect the overall outcome of your business venture. As such, you ought to practice proper bookkeeping and accounting.
Monday, November 10, 2008
Click your Financial Plan
But while your records are still organized and your computer's still on, why not look beyond that refund to your financial future?
Using do-it-yourself online financial tools, planning ahead is easier and more convenient than you may think.
"The purpose of creating a financial plan is to define what you hope to achieve in terms of financial success," says Peter J. Rossi, director of financial planning for NetBank. "If you take the time to write down what you want to achieve, you're much more likely to achieve it."
For NetBank customers, it's as easy as clicking on your mouse.
The bank's online interactive planning tools include an Express Planner that provides an overview of the customer's current finances; plans for specific goals, like retirement, education and insurance; and a Comprehensive Planner that integrates all the others for setting multiple goals.
In addition, the bank offers access to brokerage services and other investment and insurance products.
Dedicated financial advisers are available to help analyze the plan, answer any questions and help put the plan into action.
Financial planning isn't just for people with excess wealth. Financial planners recommend that everyone have a plan in place for their financial future.
The experts at NetBank recommend taking control of spending by tracking expenses over two to three months. After you get a clear idea of your expenses, develop a plan to spend less and save more.
For instance, you could consolidate your high-interest debt by refinancing your home or getting a home equity credit line.
They also suggest reviewing the asset allocation in your investment portfolio to confirm that it's in alignment with your goals. And make sure your insurance coverage is enough for your financial position.
Using do-it-yourself online financial tools, planning ahead is easier and more convenient than you may think.
"The purpose of creating a financial plan is to define what you hope to achieve in terms of financial success," says Peter J. Rossi, director of financial planning for NetBank. "If you take the time to write down what you want to achieve, you're much more likely to achieve it."
For NetBank customers, it's as easy as clicking on your mouse.
The bank's online interactive planning tools include an Express Planner that provides an overview of the customer's current finances; plans for specific goals, like retirement, education and insurance; and a Comprehensive Planner that integrates all the others for setting multiple goals.
In addition, the bank offers access to brokerage services and other investment and insurance products.
Dedicated financial advisers are available to help analyze the plan, answer any questions and help put the plan into action.
Financial planning isn't just for people with excess wealth. Financial planners recommend that everyone have a plan in place for their financial future.
The experts at NetBank recommend taking control of spending by tracking expenses over two to three months. After you get a clear idea of your expenses, develop a plan to spend less and save more.
For instance, you could consolidate your high-interest debt by refinancing your home or getting a home equity credit line.
They also suggest reviewing the asset allocation in your investment portfolio to confirm that it's in alignment with your goals. And make sure your insurance coverage is enough for your financial position.
Planning for a Secured Financial Future
Everybody aspires for a secure future and building a balanced financial plan is one good way for preparing for it. The uncertainty of your finances is needling, and there are several factors to be considered, some of these are way beyond your ken. But you can do something to prevent losses and increase your financial resources. Preparing a balanced plan is the best way to set up your financial future.
What is Financial Plan?
It is a structured blueprint to manage your cash flow. This also includes planning for your education, retirement, tax payments, estate and business planning and other specific long-term or short-term goals.
Risk management of the plan is incorporated into the entire strategy and a financial planner is the best person to help you map out a financial plan. Unfortunately, some financial plans do not work out.
Without a specialist's assistance, you can expect your plan to pack up. But if you're decided to do it on your own, make a realistic plan. Making the personal finance plan is like preparing your household budget. Stick to the plan and you're on your way to a secure future or achieve your goal.
Who Needs Financial Planning?
Everybody with a regular and stable income needs financial planning. Salaried workers are the best candidates for such planning, considering that someday they are going to retire and live on their retirement plan. If nothing has been done to prepare one's retirement plan, the future is bleak and fraught with financial uncertainties.
Government employees and those employed in the private sector should consider the advantages of having a personal finance plan. If employment is their only means of financial stability in the present, the more they should consult a financial planning specialist to help them set out realistic parameters to ensure the success of the blueprint.
People who do not know how to manage their money properly are the ideal candidates for financial planning. The plan would help them know where there is money is going and how much is coming in. This will help them become aware of their finances and encourage them to look for investment opportunities.
Saving and Investing
Before you finalize your financial plan can, determine sources of revenues--paychecks, DSS and pension benefits, investment earnings, unemployment checks, and child support or alimony. Add this all up to determine the total amount you get monthly. If you are unemployed but earn irregular income, arrive at a minimum monthly average.
The next step in your financial planning is to add up your regular expenses--food, rent, utilities, transportation, entertainment, clothing, and medication if you have a medical problem. The next step is to calculate how much you can put towards your investment, retirement, educational or tax plan.
What is Financial Plan?
It is a structured blueprint to manage your cash flow. This also includes planning for your education, retirement, tax payments, estate and business planning and other specific long-term or short-term goals.
Risk management of the plan is incorporated into the entire strategy and a financial planner is the best person to help you map out a financial plan. Unfortunately, some financial plans do not work out.
Without a specialist's assistance, you can expect your plan to pack up. But if you're decided to do it on your own, make a realistic plan. Making the personal finance plan is like preparing your household budget. Stick to the plan and you're on your way to a secure future or achieve your goal.
Who Needs Financial Planning?
Everybody with a regular and stable income needs financial planning. Salaried workers are the best candidates for such planning, considering that someday they are going to retire and live on their retirement plan. If nothing has been done to prepare one's retirement plan, the future is bleak and fraught with financial uncertainties.
Government employees and those employed in the private sector should consider the advantages of having a personal finance plan. If employment is their only means of financial stability in the present, the more they should consult a financial planning specialist to help them set out realistic parameters to ensure the success of the blueprint.
People who do not know how to manage their money properly are the ideal candidates for financial planning. The plan would help them know where there is money is going and how much is coming in. This will help them become aware of their finances and encourage them to look for investment opportunities.
Saving and Investing
Before you finalize your financial plan can, determine sources of revenues--paychecks, DSS and pension benefits, investment earnings, unemployment checks, and child support or alimony. Add this all up to determine the total amount you get monthly. If you are unemployed but earn irregular income, arrive at a minimum monthly average.
The next step in your financial planning is to add up your regular expenses--food, rent, utilities, transportation, entertainment, clothing, and medication if you have a medical problem. The next step is to calculate how much you can put towards your investment, retirement, educational or tax plan.
Wednesday, November 5, 2008
Features of Online Personal Finance Software
As the Internet has exploded, many people have begun to rely on computers to assist with budgeting. Online personal finance is a multi-billion per year industry. Initially it was popular in helping small businesses with budgeting and tax concerns, but as the computer has become ubiquitous in American homes, average people have begun to regard the computer as indispensible to their personal finance needs.
One of the first, and most attractive, ways that online personal finance tools can help the average person is through automated bill pay. This is a very busy time for the average person who is working more than ever, has a family to attend to, and the many other stresses of day to day life. Automated bill pay is quite simple. The online personal finance software links a person's checking account to their various monthly expenses. It even allows for a person to specify when they would like the bills to be paid. This makes things much easier as this ensures the account is never overdrawn. Most automated payments are made after payday. This can be done for fixed expenses such as Internet or cable TV. Variable expenses can be paid in full or with a specified amount. It not only makes sure that all of the bills are paid and nothing slips through the cracks, resulting in late fees. It also guarantees that the bills are paid before any irresponsible spending takes place. One of the goals of finance is to ensure that a person lives within their means. If all of the bills are paid before any money can be spent this becomes a much more reasonable goal. Certainly there sometimes need to be other changes to one's spending habits that need to be made, but it's an important first step.
Another helpful feature of online personal finance is the built in tax software. Not everyone has very complex taxes. Obviously some people don't have a family and don't have a house or any investments. These people's taxes are quite simple to deal with. However most people that are looking to do some budgeting have more complex situations. Real estate is a great investment for the tax breaks it gives. Having online personal finance software saves money by avoiding having to go to a tax professional and ensures there aren't any mistakes or missed deductions. When people are using online personal finance software to remedy their bad habits, they often overlook tax considerations. Back taxes are often particularly difficult to deal with and online personal finance software can help in this regard. The larger one's family is or the greater the number of investments someone has, the more likely it is that they have tricky taxes and need finance software.
Achieve Incredible Wealth
Most people want to know the first step in acquiring massive riches. They want the shiny things in life and they want to know how they can get them. We seem to have such a yearning for material things, that we forget that those things are just rewards. Nothing more and nothing less. The way we achieve these things in our lives is simple. One word is all it takes. Love.
To love your fellow man inspires you to use your talents to benefit the world. To love your work, means to follow your passion and to know that your rewards will come in due time. To love your family means to spend quality time with them and to do the things you need to do in order to provide them with the things they need.
The real path to wealth is not through any book or DVD or self help program. It is simply to love yourself and the people of this world enough to strive to accomplish big things. Two of the world's wealthiest men, Bill Gates and Warren Buffet, have pledged most of their fortune to support world causes. These men know the true meaning of wealth because they have achieved it and they know that it is merely a reward for thinking big and in turn taking big actions.
Incredible wealth is multi-dimensional. It incorporates more than just dollars and cents. It is simply well-being. To be fulfilled financially, spiritually, and emotionally. This is the true wealth that we are all seeking and therefore it all starts within ourselves and the love we have to give.
The bigger the picture that you can see inside of your mind will help you to realize that the world is just one big playground, meant for all of us to enjoy. You can achieve the results you want by focusing on yourself and in doing so you can create the strength that you need to give back to the world around you.
Monday, November 3, 2008
Financing Your New Look:
So you're considering having some cosmetic surgery done, but your insurance won't cover it and you don't have the money to pay for it up front. Believe it or not, there is a way to finance that tummy tuck or eye lift.
What to Consider
The Cost
Cosmetic surgery is expensive. Procedures cost anywhere from $500-$25,000 depending on the type of procedure being performed. Financing your surgery will only add more to that cost due to interest rates.
As with any type of financing, your interest rate will vary based on your credit history, selected loan term and the loan amount. Available loan terms may include 12, 24, 36 and 48 months or a revolving credit line depending on your credit background. Keep in mind: If it sounds too good to be true, it probably is. Be skeptical of financing companies offering 1% rates, because there is usually a hidden cost behind these offers.
Also keep in mind that you may need to come up with a down payment in order to finance your surgery. Down payment requirements are determined based on your credit history and your health care providers requirements, if any. If you have average or above average credit, you may not be required to put any money down.
As with any type of financing, whether it be a car, a home, or even cosmetic surgery, you should take into account what your current financial situation looks like and determine whether or not you can afford a regular monthly payment for the next 24, 36, 48 or 60 months.
If you have not already done so, figure out your monthly income subtracted by your bills, don't forget to include miscellaneous items such as groceries, toiletries, gas, household products, pet food, etc. After you have created a monthly budget, you can now determine whether or not you can afford another $100-$200 monthly payment.
The Procedure
Before you begin to get all excited about the prospect of financing your new look, it's important to understand why you want to have this kind of procedure done. Make sure your expectations are realistic and that you are doing this because you believe there are no other options. Consider both the pros and cons of cosmetic surgery and weigh your other options.
A good rule of thumb for financing cosmetic surgery is to finance only major surgical procedures. If you're considering Botox, for instance, the prices are reasonable enough, but if you're financing the injection(s), it will cost you more than it's worth.
You should also keep in mind that most types of cosmetic surgery need to be maintained on a regular basis, and fighting the aging process completely is futile.
Finding a Surgeon
Although a cosmetic financing company can refer you to a surgeon, it's best to find one before you contact a financing company. Dr. Steve Fallek, a cosmetic and reconstructive plastic surgeon in New York and Englewood, NJ suggests that a financing company is not going to be able to give you the best plastic surgeon.
You want to go to a board-certified cosmetic surgeon who is reputable, honest and who hopefully you've gotten the name from someone who has had plastic surgery from that person. Fallek says patients should ask their surgeon to recommend a finance company.
Financing Companies
Before you chose a financing company, make sure they are reputable. They should have a good track record in financing health care procedures and should work with a network of doctors.
If you have found a surgeon to do your procedure, you may also ask if he/she has financing available. The terms of the financing should be clearly outlined in writing before you apply for any financing, and you should never pay a broker fee.
Most surgeons use the same financing companies, so don't waste your time looking for surgeons who may have lower rates. Seeing different surgeons takes up time and money.
You may also want to consider using your credit card if the interest rate is lower. Some people also borrow from family or even take out a home equity loan.
The Decision is Made
If you have now decided that you can afford to finance your cosmetic surgery, research your procedure online to find out the benefits and risks. You may also want to discuss your surgery options with your primary physician who may also provide you with a list of surgeons and payment options.
What to Consider
The Cost
Cosmetic surgery is expensive. Procedures cost anywhere from $500-$25,000 depending on the type of procedure being performed. Financing your surgery will only add more to that cost due to interest rates.
As with any type of financing, your interest rate will vary based on your credit history, selected loan term and the loan amount. Available loan terms may include 12, 24, 36 and 48 months or a revolving credit line depending on your credit background. Keep in mind: If it sounds too good to be true, it probably is. Be skeptical of financing companies offering 1% rates, because there is usually a hidden cost behind these offers.
Also keep in mind that you may need to come up with a down payment in order to finance your surgery. Down payment requirements are determined based on your credit history and your health care providers requirements, if any. If you have average or above average credit, you may not be required to put any money down.
As with any type of financing, whether it be a car, a home, or even cosmetic surgery, you should take into account what your current financial situation looks like and determine whether or not you can afford a regular monthly payment for the next 24, 36, 48 or 60 months.
If you have not already done so, figure out your monthly income subtracted by your bills, don't forget to include miscellaneous items such as groceries, toiletries, gas, household products, pet food, etc. After you have created a monthly budget, you can now determine whether or not you can afford another $100-$200 monthly payment.
The Procedure
Before you begin to get all excited about the prospect of financing your new look, it's important to understand why you want to have this kind of procedure done. Make sure your expectations are realistic and that you are doing this because you believe there are no other options. Consider both the pros and cons of cosmetic surgery and weigh your other options.
A good rule of thumb for financing cosmetic surgery is to finance only major surgical procedures. If you're considering Botox, for instance, the prices are reasonable enough, but if you're financing the injection(s), it will cost you more than it's worth.
You should also keep in mind that most types of cosmetic surgery need to be maintained on a regular basis, and fighting the aging process completely is futile.
Finding a Surgeon
Although a cosmetic financing company can refer you to a surgeon, it's best to find one before you contact a financing company. Dr. Steve Fallek, a cosmetic and reconstructive plastic surgeon in New York and Englewood, NJ suggests that a financing company is not going to be able to give you the best plastic surgeon.
You want to go to a board-certified cosmetic surgeon who is reputable, honest and who hopefully you've gotten the name from someone who has had plastic surgery from that person. Fallek says patients should ask their surgeon to recommend a finance company.
Financing Companies
Before you chose a financing company, make sure they are reputable. They should have a good track record in financing health care procedures and should work with a network of doctors.
If you have found a surgeon to do your procedure, you may also ask if he/she has financing available. The terms of the financing should be clearly outlined in writing before you apply for any financing, and you should never pay a broker fee.
Most surgeons use the same financing companies, so don't waste your time looking for surgeons who may have lower rates. Seeing different surgeons takes up time and money.
You may also want to consider using your credit card if the interest rate is lower. Some people also borrow from family or even take out a home equity loan.
The Decision is Made
If you have now decided that you can afford to finance your cosmetic surgery, research your procedure online to find out the benefits and risks. You may also want to discuss your surgery options with your primary physician who may also provide you with a list of surgeons and payment options.
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