Prepay Energy Customers Left With 'Hefty Price To Pay'

Prepay Energy Customers Left With 'Hefty Price To Pay'
Those Britons who are paying for their energy through a
prepayment scheme are losing out on millions of pounds,
according to findings by a price comparison website.

In a study carried out by moneysupermarket, it was revealed
that the typical person meeting the cost of their utility
bills via prepayment is paying out an average of 1,026
pounds 46 pence. However, by switching to pay by monthly
direct debit, such a consumer would pay 853 pounds 96
pence. Overall, it claimed that prepaying Britons are
missing out on total savings of 862.5 million pounds.

Due to difficulties with meeting the cost of household
bills, it may also be possible that many consumers develop
problems with other sources of financial constraint. Such
areas could well include mortgage or rent costs, loans and
store and credit cards.

Furthermore, it seems that those who choose to prepay for
their gas and electricity with British Gas could be coming
under most monetary pressures. Such consumers were
indicated as paying out 1,143 pounds 59 pence, although by
changing to direct debit costs would fall to 879 pounds 97
pence. Generating a total saving of 263 pounds 62 pence,
this is the biggest amount of money among the six major
energy providers. Npower customers were revealed to be able
to be 221 pounds 17 pence better off by changing their
method of payment. On the other hand, the smallest
available saving is with EDF. However, even switching bill
settlement methods here could save consumers just over 70
pounds.

Although Paul Schofield, head of utilities at the price
comparison site, commended moves by chancellor Alistair
Darling to increase spending on social tariffs, he stated
that more could be done to help those at risk of fuel
poverty. The moneysupermarket chief claimed that currently
just 0.11 per cent of major energy firms' turnover is going
towards low-rate deals and helping poorer customers.

Mr Schofield said: "The government will also be working
with [gas and electricity watchdog] Ofgem and energy
providers to treat prepayment customers fairly. Customers
can shave hundreds off their bill by changing payment
methods. Ironically, those on prepayment meters have a
hefty price to pay and will find their annual bill 172
pounds 50 pence higher than those who pay by monthly direct
debit. With five million customers on pre-paid meters,
people are missing out on 862.5 million pounds a year in
savings. I call on Ofgem to put pressure on the energy
providers to support vulnerable customers and reduce prices
for pre-paid customers."

The moneysupermarket official went on to claim that "help
is at hand" for those Britons who find that they are
developing problems with paying off energy bills. Mr
Schofield recommended that consumers should get in touch
with their utilities provider who may be able to offer
assistance on the likes of winter fuel allowances and
special social tariffs.

People worried about their capacity to pay for energy bills
might also wish to consider taking out a UK loan. In
obtaining a cheap personal loan it is possible that
borrowers can quickly meet demands for payment on utilities
and other areas of household spending. Indeed a quick loan
could also be of assistance to those struggling with mobile
phone costs. A recent study by the price comparison website
indicated that on at least one occasion a fifth of mobile
phone users have received a bill that is more costly than
previously anticipated.

----------------------------------------------------
Abbi Rouse writes for All About Loans where visitors can
apply online for cheap UK loans. We also specialise in
poor credit loans, and cheap consolidation loans. Visit
today http://www.allaboutloans.co.uk/

Top Tips for Choosing a Good Cash Advance Lender

Top Tips for Choosing a Good Cash Advance Lender
How to Choose a Good Cash Advance Lender

You have probably seen the commercials for cash advance
loans, also called payday loans. They are all over the
television these days and you most likely haven't given
them a second thought until now. Your car needs work and
you don't get paid for a few more days, but you can't get
to work unless your car gets fixed. It's a catch 22
scenario that happens every day all over the country to
more people than you can imagine. Emergencies happen and
you will see several people looking for ways to get
themselves and their families through a financial crunch
now and then. This is precisely why the cash advance
industry has grown so much in recent years.

So you know you need a cash advance loan but you are not
quite sure how to find the best payday loan company for you
and your individual situation.

Here are a few questions you should ask yourself to help
you in determine what to look for in a good cash advance
lender so that you can make an informed decision with the
least amount of trouble.

What is a Cash Advance Lender?

Cash advance lenders offer short term loans to people who
find themselves in a financial bind between pay periods.
They offer quick money that you can usually have in less
than 24 hours. As you might expect, these lenders are in
the business to make money, so payday loans aren't free.
It's quite the contrary, in fact. Most payday loans will
need to be repaid within two weeks. The specific term may
vary from company to company, but two weeks is the average
across the country.

What do I look for?

When looking for a cash advance lender there are several
things to consider before you sign on the dotted line.
First, you should find out how long the company has been in
business. With the industry growing as quickly as it has,
hundreds of companies have sprung up seemingly overnight.
You should only consider doing business with a company that
has been around long enough and has proven themselves
stable. The best way to compare between different cash
advance loan companies is by doing an Internet search. On
the Internet you will find detailed information about
specific payday loan companies as well as reviews from
people who have done business with them in the past. If you
cannot locate the information you need on the web, an
alternative would be to contact your local branch of the
Better Business Bureau. They maintain records on companies
doing business in your area and individuals who have
accolades or complaints will contact them to register those
situations and seek a resolution when they feel they have
been wronged.

Next you should look at the requirements that will be
necessary to complete the process. What specific
information does the cash advance company require as part
of the application process? Most lenders will not require a
great deal of information up front so long as you meet the
following requirements:

-You are 18 years or over as you need to be at least 18
years of age to enter into a legal contract in the United
States

-You have a checking account

-You can prove that you have a stable job earning a certain
pre-determined minimum per month. The minimum monthly
income may vary from company to company.

How much money can you get?

Most payday loans are for a relatively small amount,
usually between $100 and $500, though some companies will
offer a much higher amount. You should have a good idea of
much money you really need before you look and don't let
them talk you into a loan for more than that amount.

What are the fees associated with the loan?

Payday loans are not cheap, and you can expect to pay high
fees for using the services that these companies are
offering. Ask what the fees are going to be before you
commit to taking the loan. This can save you a painful
surprise down the road.

When do you have to repay the loan?

Find out how long you have before the loan must be repaid.
In most cases, a cash advance loan will come due in two
weeks.

By asking the right questions up front, you will find it
easier to decide which cash advance loan company is best
for you.

----------------------------------------------------
Let us help you sort out the good cash advance lenders from
the bad! http://www.HotFastCash.com is a comprehensive
source of cash advance lender reviews and lending
information for consumers.

An Investor's Short Guide to Approaching the REO Market

An Investor's Short Guide to Approaching the REO Market
REO is short for "Real Estate Owned." These are properties
that have been foreclosed upon by a bank or other lender.

The REO department is staffed by "asset managers." Their
job is to inspect the properties, make the necessary
repairs and operate them until they're sold.

You may be able to find great opportunities in this area if
you're willing to learn the ropes and deal with the often
tough-minded REO departments of banks and other lenders.
This article will give you the guidelines for doing just
that. Understand the Attitude of Lenders Toward REO
Properties Naturally, lenders don't like to have REO
properties on their books. Instead of an asset, they have a
liability. Equally naturally, they want to get rid of these
properties, but they're not willing to do it at a loss, if
at all possible.

Not only do you, as an investor, have to deal with this
attitude, but you also have to deal with the fact that
banks often don't like to publicize the fact that they have
REOs on their books. They have three reasons for this.

First, they don't want federal regulators on their backs,
questioning their business practices or solvency.

Second, they don't want their depositors knowing about
REOs. Depositors want security above all and
if—rightly or wrongly—they see REOs as evidence
of questionable practices, they may pull their money out.
Banks want to protect their image.

Third, if lenders have a large inventory of REOs, they
don't want the market at large to know about it. If the
information leaks out, prices could drop dramatically.

So, how do you find out about REOs? That's our next topic.
Present Yourself As a Professional to the REO Department A
lender's REO asset managers don't want to deal with amateur
investors, so you need to approach them as a knowledgeable
professional.

First, call the lender and ask for the REO department. Once
in contact, explain that you're an independent,
professional investor and are interested in buying REO
properties and would like an appointment with a
decision-maker.

Then, use that appointment to present your case and
convince the decision-maker that you have the assets and
experience of a committed professional. If you do your
sales job right, then you can ask for a list of REO
properties.

Note: Sometimes, REO departments handle the properties
themselves; sometimes, they use a broker. So, be prepared
to deal with both. Inspecting REO Properties As you might
expect, many of these foreclosed properties aren't in great
condition. The former owners aren't happy campers so they
may not take care of the property or even damage it to vent
their anger. So, you'll definitely need to do due diligence
and inspect any properties that you're considering.

In some cases, lenders will do cosmetic repairs to a
property since they know a more attractive home will bring
a higher price. To counter this possibility, I recommend
that you try to show up as soon as the property is acquired
and offer to take it "as-is" to get a lower price. The
Mechanics of Buying REO Properties There's no secret to
buying these properties; you buy them just as you would any
property. First, you make an offer. The lender either
accepts it, rejects it, or makes a counter-offer. In the
case of a counter-offer, you negotiate.

In terms of payment, most lenders prefer cash because they
want to be rid of these properties cleanly and quickly. If
this is the case, you'll need to go to a different lender
to get your financing. Just don't expect a great deal; that
lender may want 10% or more down plus closing costs.
However, some REO departments realize that they'll get less
from a cash offer so they may offer you financing. The
advantage of this is that you may be able to pay a lower
down payment, get easier terms, and also obtain some money
for improvements. The disadvantage is that you'll pay more
in interest and fees than you would on a strictly-cash
basis. Typical Problems to Expect As I said earlier, many
of these properties are in bad condition and may not be
worth the money, so inspect them carefully before you
commit to a purchase.

Also, as I said before, these properties are sold "as-is."
This means there is no warranty of any kind. So, if you buy
a property that later requires very expensive repairs,
you're stuck with that expense. The lesson—perform
due diligence very carefully!

In the case of federally-chartered lenders, you may not get
a disclosure statement (most states require these now).
That means there's the possibility you could get stuck with
a property that has severe and expensive problems (e.g.,
lead paint, etc.).

Finally, if as a result of a home inspection, you find
repairs that need to be done, don't expect the lender to
pay for them. As far as they're concerned, it's your
problem to solve.

Key Point: When approaching an REO department, be a
fully-prepared professional.

----------------------------------------------------
Jack Sternberg is a nationally recognized expert on real
estate investment and the creator of the renowned "Buyers
First Program" who's been in the business for more than 30
years. Sternberg's deals have totaled over $750 million and
he's been to the closing table more than 1,500 times. For
more, visit http://www.askjacksternberg.com

The Frugal You

The Frugal You
If you are trying to cut down on your costs, there are ways
to reduce your spending by simply applying these tips into
your day to day activities.

Winter is here and that may translate to higher electric
bills for some homes. Appliances can be the main culprits
of high electric bills. If you are trying to cut cost, try
using less of these electricity eaters. For instance, after
washing your clothes, consider hanging them up to dry
instead of putting them in the dryer. Your clothes may
thank you as some fabrics are ruined by the dryer. For
quicker results, designate an area of the house that either
gets the most heat or has less traffic. Also, make sure
you have your refrigerator set to run most efficiently.
The temperature should range between 36 and 40 degrees
Fahrenheit and the freezer should between 0 and 5 degrees
Fahrenheit. Turn off the anti-sweat feature. It keeps the
moisture from forming on the outside, but turning off that
feature can save 10% in energy costs. If your fridge is
near the oven and you can move it, do so. The heat from
the oven will make it work harder. Place only cold or room
temperature foods in the fridge. Placing something hot
inside, will make the fridge work harder to cool it down.
Plus, hot items may spoil foods around it.

If you are planning on making home improvements or simply
would like to redecorate a room, stop by the Habitat for
Humanity's ReStore. The ReStore is a venture initiated by
Habitat for Humanity to generate funds to support their
building programs. The store stocks and sells donated
building and home improvement materials that otherwise
would end up in area landfills. So while helping the
environment the ReStore is able to provide construction
materials and furniture at a much cheaper price than your
local vendors. Plus, as a shopper, you support a worth
while cause! To find a ReStore near you, visit Habitat for
Humanity's website at www.habitat.org.

Paying with cash helps keeps expenses at a minimum. Debit
cards issued by your bank that are linked to your checking
or your savings account can be helpful but they can also
ruin your checking or savings account balances. If you are
diligent about keeping a record of your expenses (in your
check registrar or otherwise)you may get away with using
your debit card often. However, most people use the debit
card and mentally deduct the amounts as they go along. This
can have expensive effects on your bank account. Overdraft
fees average $30 per transaction for each posting period!
Two things can happen when you use your debit card and not
keep track of your expenses:
1. you will be more likely to overspend through out the
week
2. You may spend more money than you actually had and be at
the mercy of your bank's fees.
Give yourself a certain amount of money to spend throughout
the week, this will help keep your finances in check.

----------------------------------------------------
Debt Management Credit Counseling Corp. ("DMCC") is a
501c(3) not-for-profit charitable organization. DMCC
provides free financial educational materials, seminars and
a financial literacy program to consumers across the U.S.A.
DMCC also provides free assistance to any consumer needing
debt solutions. DMCC financial counselors can be reached by
calling (866) 285-0994, emailing debthelp@dmcconline.org,
or by visiting http://www.dmcccorp.org .

Mortgage Refinancing? 3 Smart Ways to Maximize Your Savings

Mortgage Refinancing? 3 Smart Ways to Maximize Your Savings
Today I want to show you mortgage refinancing strategies
that will slash your monthly mortgage loan payment while
making it possible for you to consolidate credit card debt,
establish and fully fund a nest egg that you can tap into
in the event of an emergency, as well as provide you with
more funds for your retirement planning, and still keep
your monthly outlay of cash just about where it is now.

Even though mortgage times are tough for consumers who are
locked into variable rate mortgages in the subprime market,
and it seems as if some institutional lenders may not last
much longer. If you have decent credit this is a perfect
time for you to take advantage of falling interest rates
and mortgage refinancing lenders who are more than willing
to reward you for having a good repayment record.

Even if your credit isn't flawless, mortgage refinancing
right now could be a smart opportunity to maximize your
savings - while getting on top of your expenses.

In a lot of cases right now it may be possible for you to
refinance your current mortgage at about 5%. If you can do
that, chances are pretty good that you'll save a lot of
money - money that you can immediately put to good use.

Here are three categories you can spend some of your
savings on:

-Paying down credit card debt - an extra $100 per month
could take a substantial bite out of your remaining credit
card debt. If you're diligent about applying your monthly
mortgage savings towards that debt, in no time at all you
could be throwing away a credit card that is costing you a
bundle.

-Establishing an emergency fund - many of the financial
gurus recommend having three to six months of living
expenses available to provide a financial cushion in the
event of a financial catastrophe, such as losing a job or
an unanticipated expense like an engine overhaul. The key
to having an emergency fund is to start it. Don't worry so
much about how much you have in that fund to begin with,
because steady monthly deposits will grow that fund and
provide you with emergency cash in case you need it, and
will act as a security blanket to make you feel more
financially comfortable. Having an emergency fund is not
only a good idea, but it will make you feel extremely smart
in the event that you are ever presented with a pink slip
from your employer.

-Statistics show us that Canadians are failing to
adequately prepare for the future, so any additional money
you can sock away into your retirement planning will
prepare you for your golden years. Unless your name is
Lucky, you're really not interested in eating Alpo for
dinner five nights a week; increasing your contributions to
your retirement fund can help prevent this from occurring.

With as little as $300 per month savings from your monthly
mortgage payment, you can very easily boost your retirement
planning goals, consolidate credit card debt and add peace
of mind. Taking advantage of these three smart strategies
will add greater stability to your life. This won't cost
you a dime, because it will be funded completely by your
new monthly savings by mortgage refinancing the smart way.

----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of
HomeRefinanceCoach.com. Darrin shows people how to MAXIMIZE
their equity PROPERLY and how to choose options that make
the MOST SENSE for their situation! An example of exactly
how this works, is at: http://www.homerefinancecoach.com

CML Reveals Drop In Mortgage Lending

CML Reveals Drop In Mortgage Lending
Mortgage lending has fallen, new research shows.

In figures released by the Council of Mortgage Lenders
(CML), it was revealed that some 50,300 loans for the
purposes of purchasing a house were taken out over the
course of January. Such borrowing was indicated to be worth
a total of 7.8 billion pounds. The number of loans approved
was also shown to be down by 34 per cent from figures
recorded during the same month in 2007 and 19 per cent
lower than statistics witnessed in December 2006.

Research from the institution also revealed that buyers
took out an amount which is of a decreasing proportion to
their earnings. The typical first-time buyer borrowed 3.32
times their income in January, a fall from the 3.38
recorded in the previous month and down from 3.31 seen at
the beginning of 2007. Meanwhile, existing homeowners
borrowed an average of 2.97 times their income at the start
of this year. During December, however, this stood at 3.04.

Michael Coogan, director general of the CML, said: "The
wholesale funding markets remain largely closed and
mortgage funding still remains constrained. This is now
having a discernible impact on lending criteria and the
ability of first-time buyers to get into the housing
market. Tomorrow's Budget presents a perfect opportunity
for the government to do what it can to help first-time
buyers by raising the stamp duty threshold."

He added that there is unlikely to be "one silver bullet
solution to problems in the wholesale funding markets".

In addition, the council reported that fixed-rate products
were becoming decreasingly popular, with the number of
people taking out such UK loans in January down by 20
percentage points from six months beforehand. Trackers
mortgages, meanwhile, were shown to be favoured by a higher
number of consumers, with the CML stating this was due to
predictions that the Bank of England would choose to lower
the base rate of interest over the remainder of this year.

And following on from an interest rate cut, it possible
that Britons could make repayments on mortgages and loans
with greater ease - should money lenders choose to pass on
such reductions.

Remortgaging was indicated as increasingly dramatically
over the course of January - as 85,000 consumers chose to
initiate such a borrowing strategy. This figure represents
an increase of 43 per cent from the 59,000 recorded in
December.

Commenting on the CML figures, the Royal Institution of
Chartered Surveyors (Rics) reported that the credit crunch
is having a "meaningful impact on the availability of
finance for home purchases". Furthermore, Rics suggested
that those looking to take their first steps on the
property ladder are "very much under the cosh" - with
mortgage lending set to diminish further as the property
market weakens.

Those looking for an effective way to supplement their
finance in the weeks during a property purchase, a cheap
loan may prove to be of assistance. By getting this type of
loan it is possible that consumers can meet the various
expenses associated with buying a home such as stamp duty
and redecorating. A loan may also be of help to those in
the midst of the purchasing process. Last month, Lee
Tillcock, editor of Business Moneyfacts, reported that a
loan for bridging purposes can be of assistance to those in
the 'financial gap' between buying their new home and
selling an old property.

----------------------------------------------------
Abbi Rouse is Editor in Chief for All About Loans. Our
visitors have access to cheap online loans of all types:
From home improvement loans to bad credit debt
consolidation loans. Visit our site today:
http://www.allaboutloans.co.uk

What To Look For In The Best Gift Credit Cards

What To Look For In The Best Gift Credit Cards
When it comes to gift credit cards, they are definitely not
all created equal. For as many good gift cards that there
are available, there are just as many bad ones to match
them. How do you tell the difference between the good and
the bad? These pointers will help you navigate the
sometimes-confusing world of gift credit cards with ease.

A Gift Is a Gift

Anyone with any etiquette sense knows that a gift is a gift
and a gift recipient should not have to pay for that gift
-- but that's exactly what some gift credit cards require
gift recipients to do. Before you decide on any single gift
credit card, make sure you know exactly what fees that card
will require and who those fees will be charged to.

Almost any gift credit card is going to require some kind
of a fee, but it should be you, the gift giver, who is
responsible for that fee. If the card requires your gift
recipient to pay an activation fee or a per-transaction
fee, it's not the right card for your gift-giving needs.

What's It Gonna Cost You?

Another thing you need to ask yourself when buying gift
credit cards is how much the card costs. It's not uncommon
to pay $5 to $10 for a gift card, in addition to its face
value. This means your $25 gift may cost you $35 in the
long run. Just make sure you don't pay more than that. If a
card costs more than $10 plus the face value of the card,
it's not worth it.

Where Does The Money Go?

Some gift credit cards will take money away from the
available balance each month the card isn't used and some
cards expire altogether. This means your gift card might go
from a value of $50 to $0 in twelve months if your gift
recipient doesn't use it right away.

Your best bet is to go with one of the gift credit cards
that charges a minimum monthly fee for any balance not used
after six months. For example, a $50 card that isn't used
for six months could incur a fee of $2 per month for each
month the balance is unused. That's a lot better than
losing the entire $50 in one lump sum.

It's true that there are some really bad gift cards on the
market. If you keep the above tips in mind and read the
terms of the different cards available carefully, however,
you should have no problem finding the best gift credit
cards for sale.

----------------------------------------------------
For more tips on credit cards, saving money and avoiding
getting taken, check out CreditCardTipsEtc.com, a website
that specializes in providing credit card tips, advice and
resources.
http://www.creditcardtipsetc.com

The Hidden Costs of Cash Advance Loans

The Hidden Costs of Cash Advance Loans
Knowing the Costs of a Cash Advance Loan

If you are reading this, you no doubt know what its like to
live from one paycheck to the next.

Some people plan their finances very carefully and make
sure they spend strictly within their means. They will
never splurge on a brand new jewelry set, new clothes or a
swanky new car if they knew it could possibly put them in
the red. However, sometimes even hard working people can
be caught by surprise and thrown into a financial crunch by
some exigency such as an emergency car repair or doctor's
high bill. If you find yourself in this sort of situation,
a payday cash advance loan might just be the extra boost
you need to get through the immediate money crunch.

Before you apply for a payday loan, you should first make
sure you really need it. In case of an absolute emergency
situation, such as unexpected car repairs or a higher than
usual utility bill or high medical bills; taking a loan may
be completely unavoidable. However, you should refrain from
taking a loan, if you have the slightest suspicion that you
may not be to repay the loan on time. You'd only be piling
on more debt on top of the debt that already exists.

Researching cash advance loan companies

It is wise to research cash advance loan companies before
doing business with them. A simple Internet search will
provide you with links to quite a few companies who each
have different requirements and terms. By reading all of
the fine print and comparing what several companies offer,
you will be in a better position to choose the best cash
advance lender for you and your individual situation.

The costs associated with a cash advance loan can vary from
company to company and even from state to state. The laws
in California for instance may dictate certain limitations
on the fees that their companies are allowed to charge.
The same rules may or may not be in force in Florida or
North Carolina.

One thing that you should be aware of is that as a
borrower, you have certain rights from the beginning.
According to the Truth in Lending Act of 1968, all
financial lenders must disclose up front any and all fees
associated with the loan they are offering and must offer
that disclosure to the borrower in writing. This
disclosure also includes informing you of the annual
percentage rate (APR) of the loan (or in simpler terms, how
much the loan would cost you on an annual basis).

The APR of an average loan that is acquired through a
traditional lender is somewhere in the neighborhood of 7%.
Based on recent surveys that have showed the average payday
cash advance loan will cost the borrower about twenty five
dollars ($25) per hundred dollars borrowed, a payday loan
carries an APR of about 650%. How do you arrive at such a
high number? It's simple, really. Let's say for example
that ABC payday lender charges $25 for you to borrow $100
and that you must pay back the loan plus the fee in two
weeks time. If you do the math, the APR of this sample
loan would be 651.79%. Of course as was mentioned
previously, not all cash advance loan companies charge the
same amount. The Truth in Lending Statement will provide
you with all of the details about any fees and charges as
well as show you what the annual percentage rate is for
your particular loan.

Another key factor to keep in mind is the repayment period
for the loan. Typically the loan will need to be paid in
full within two weeks. If you are able to pay off the loan
and the associated fee in that period of time, there is
nothing more for you to worry about. If however you are
like many people who avail themselves of this type of
service you are unable to fulfill your obligation in the
time frame outlined in your original agreement, the
majority of payday cash advance lenders will allow you to
extend the term of the contract. While this can be a
tempting offer that enables you to put off thinking about
your financial problems for another couple of weeks, you
need to be aware that extending the length of your loan
will add to the fees that you are responsible for. Most
often, the fee for such a term extension is higher than the
original fee.

Before you enter this or any other such contract, do your
homework. Don't do what we are all guilty of from time to
time and ignore the fine print of your contract. Read and
understand what you are getting yourself into or you might
just end up paying the price later!

----------------------------------------------------
Let us help you sort out the good cash advance lenders from
the bad! http://www.HotFastCash.com is a comprehensive
source of cash advance lender reviews and lending
information for consumers.

Owning Your Own Home Business -10 Reasons to Look Forward to April 15th

Owning Your Own Home Business -10 Reasons to Look Forward to April 15th
OK, no one really likes tax time, but, owning your own home
business can make April 15th a bit more enjoyable if you
know how to save money on your taxes. There are many
legitimate business deductions allowed by the IRS for the
home business entrepreneur the key is knowing what they are
and what you need to do to claim them.

Sandy Botkin, CPA and former IRS attorney, says "If you do
not have a home based business you are loosing money." The
tax advantages to a properly formed home business and not a
hobby are worth your time and efforts.

Tax Advantages

Business Deductions

It should go without saying that all business deductions
should be reasonable and necessary. And to prove those
claims you must keep accurate books and records. If the IRS
where to audit you they would be looking for such items as
sources of income, detailed expenses, bank statements,
credit card statements and all receipts for purchased items
and services rendered.

The more deductions your business can legitimately take,
the lower its taxable profit will be. Here is a simple
example: if you earn $100,000 per year from your job and
home-based business, combined, but have $15,000 in
allowable business deductions from your business, you would
only pay taxes of your net income of $85,000. At 30% tax
rate, that could save you $4,500 in federal taxes!

Auto Expenses

Proper logging of all business related travel will help you
reduce your yearly auto expense. You will need to track the
date, purpose of the trip, and round trip mileage. These
few extra steps will save you money on gas, yearly upkeep
and insurance costs.

Education / Training Expenses

All home business owners need to keep on top of their
industry or may need to update their computer skills. Cost
for seminars, online training programs, books, e-books,
professional memberships and subscriptions are all
deductible. You can even deduct those fees from your lawyer
and tax professional.

Business Entertaining

Does your home business require you entertain clients? If
so, you can deduct a percentage of those costs directly
related to the business. Keeping good notes on this
activity, jotting down who was their, what was discussed
and making certain that business activity was foremost,
will ensure the acceptance of this claim by the IRS.

Travel

How would you like to have your vacations paid? The IRS
allows you to combine business travel with pleasure
provided your primary purpose for the trip was for
business. You can deduct such expenses as your plane fare,
operating cost of your car, rental cars, taxis, lodging,
meals, tips, dry cleaning, telephone calls, faxes, well you
get the idea. However, this will not include expenses for
family members if they accompany you, unless they work for
you!

Advertising

All expenses involved with advertising or promoting your
business are deductible. For example, business cards,
classified ads, brochures, flyer's, posters, t-shirts are
just a few.

Interest

Interest on credit cards and business loans are fully
deductible.

Computers and Software

Is your business done on the computer? Do you need software
to operate your business? Do you need to connect to the
Internet? These rules can change based on the business
model so be sure to check with your account for your
industry.

Charitable Contributions

Part of being a model citizen and business owner is to give
back to your community. Charitable contributions are
allowable. Again you should consult with a professional on
what you can take based on your business structure.

Household Expenses

This is one of the most valuable deductions. If you use a
percentage of your home, say a den or the basement
"exclusively" this will qualify you for this deduction. You
can save on your utility bills, phone bills, maintenance;
even a portion of the interest you pay on your home is
deductible.

These 10 tips only scratch the surface of the tax benefits
owning a home business provides. As always it's important
to consult with a CPA or Tax Attorney to ensure you are
taking the proper deductions and getting all you deserve.
Keeping those hard earned dollars in your pocket and out of
Uncles Sam's is to your benefit.

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Bob and Cindy are both home based business entrepreneurs
with 15 years experience in owning Real Estate and Network
Marketing businesses. You can own your own business today
that provides residual income for your future. To learn
more about how you can secure your financial future... Go
to: http://www.ThingsLookGreatIn2008.com
For advice and strategies on building success with your
online business visit our blog at
http://www.blog.bobandcindyfloyd.com