Getting A Bank Account Unfrozen

Learning that your account is frozen is certainly a nightmare. You are unable to make any purchase or write checks. Furthermore, the checks that you had written previously will also be blocked. There are many reasons that banks freeze accounts.

However, there are ways with the help of which you can unfreeze your account and lift off the financial hardship off your shoulders. Let’s take a look below:

Determine the Reason

The first step that you must take is to find out the reason behind the freezing of your account. Most banks freeze accounts when you haven’t paid off your debts and the money you owe to them. You also need to ensure that your account has not been compromised by a thief.

Therefore, the best way to learn the reason is to head to your bank. If your account was seized due to a legal judgment or any other debt issue for the matter of fact, you will need to get in touch with court for a solution.

Get in Touch with Court

If you did not know about your creditor’s action in advance, you have the right to talk to a judge. Creditors are required to send a legal notice before freezing your account and if they failed to inform you, they are liable to answer the court. Once your side of the story is proven and the creditor is at fault, the court will remove your account from the frozen list. You will then need to submit court’s ruling to your bank and get your account to unfreeze.

Pay Off the Dept

If your account was frozen because of unpaid debt, you can get it back by paying it off. When you miss multiple payments and leave your debt to pile up, creditors will take legal action against you including freezing of your account. Therefore, if you want to recover your account, you will need to get rid of the problem. Since creditors only need their money back, if you pay off all debts, your account will be unfrozen and ready-to-be-used again.

Hire an Attorney

Another way of recovering your account is to get in touch with an attorney. Attorneys are licensed professionals who have the right expertise and knowledge to handle financial issues. Your attorney will help negotiate with creditors and the court to revive your account. Furthermore, due to their strong networks, most attorneys are able to crack a deal and find a middle ground during negotiations that help you recover your account much faster. Another benefit of hiring an attorney to help unfreeze your account is that you get to save a lot of money in settlement.

Whether your account got frozen due to unpaid debts or a security issue, there are steps that you can take to recover it. Unless the problem is big and you are at the wrong end, chances are that you will be able to unfreeze your account in less amount of time.

The Bitter-Sweet Relation Between Inflation and Interest Rates

Interest rates and inflation are deeply connected, especially in terms of interest rates. When inflation increases, interest rates rise and vice versa. The spike in inflation increases overall costs, making things much expensive. Furthermore, it also reduces the value of money that you have saved in your bank account.

In order to understand the relationship between inflation and interest rates, take a look at the following factors:

Impact on Savings

Inflation affects a person’s savings the most. If you have saved £1,000 in your savings account with a 1% interest rate, you will be getting £1,001 at the end of the year. However, if there is a rise in inflation, your money will depreciate in value. This means that even when you are earning an extra pound, the value of your money will go down. What once could be bought in £1,001 will no longer be within the same price bracket.

Therefore, those who are living off of their savings might not be able to maintain the same lifestyle standards what they could a year back. This spike in inflation will make things much expensive while dropping the value of money. So, even when you are earning more, you will actually be losing money.

Increased Borrowing Demand

The rise in inflation makes it hard for companies to operate. What once could be managed using company finances becomes extremely hard due to rising prices and lowered money value. In order to pay for supplies, shipping, running costs, raw materials, inventory, employees, etc, companies cannot pay everything on their own. Therefore, in order to keep operations running smoothly, they require loans.

So, when there is an increase in loan demand, banks will automatically spike up their interest rates, making loans much pricier. Banks make the most of inflation by making their money available to only those who can pay high interest rates. This means the increasing inflation directly impacts interest rates, increasing overall costs for businesses.

Lowered Profit Margins

Inflation also impacts the overall profit margins for businesses. This happens due to the increase in operational costs as businesses are paying more money to stay in the market and getting loans from banks to make up for the loss of the value of money. Since banks take advantage of the rise in inflation by raising interest on loans, businesses pay a lot more money to keep their operations running. This means that most of the profit goes into loans and operational costs, which results in dramatic decrease in profit margins.

Poor Expense Management

Another major affect of rising inflation on interest rates is that borrowers are unable to save money and make payments with every passing day. Because inflation makes everything expensive, businesses and individuals have to spend more money to maintain their operations and lifestyles. So, they spend less and whatever they earn has a lowered value, which results in less money saved. Furthermore, the interest rate on borrowed money will keep going up, making it hard for them to run everyday expenses.

Your One Stop Guide to 401-k

Many people are unsure of which retirement plan to enroll themselves into. After retirement, if you haven’t made any savings, your only income would come from social security, which, frankly, is not much to rely on for a comfortable retirement. A 401-k plan is a preferable option for all those looking for a retirement plan, however, many people are intimidated by it as it involves saving the money from your monthly income. In reality, it is a very comfortable and flexible option. So without further ado, let us give you the ultimate 401-k guide.

What is 401-k?

This is a retirement plan which you can control. You can decide how much money you are going to invest each month in the plan. If you start early, your money will grow for a longer period of time and by the time you retire, you will get more.

What are the Benefits of 401-k?

The main benefits you get out of using this retirement plan is that the money that you keep in the plan will not be taxed until you withdraw it. This means that every month, you will be paying taxes on only the money that is left after you have set aside the money in 401-k.

Although the tax will have to be paid once you start withdrawing money from your 401-k after retirement, but by then your monthly income will be lower, and the taxes would therefore be low as well.

In addition to this, you can choose what the bank does with your money, unlike other savings accounts, in which you have no say over what the bank will invest in with your money.

What is a Roth 401-k and How Does IT Differ from 401-k?

A Roth 401-k plan works exactly like a 401-k except for one difference—the amount that you set aside for the retirement fund is taxable. This means that you will be paying the taxes on your entire income, but when it is time to withdraw money after you retire, the money you have set aside in the Roth 401-k will be completely tax free.

Which Choice is better? 401-k or Roth 401-k?

Both choices are good, but there are different factors which would make one seem better than the other. Briefly put:

401-k plan is better when:

  • You salary is high right now.
  • You don’t wish to pay hefty taxes right now.

Roth 401-k plan is better when:

  • Your salary is relatively low right now.
  • You don’t wish to pay taxes on your retirement funds when you retire.

Can I Withdraw Money from 401-k before Retirement?

With tax penalties of up to 10% for each early withdrawal, yes you can. And in the case of emergencies, you can borrow money, but you will have to pay it back.

However, we recommend that you consider the retirement money as un-spendable, since the entire purpose of a retirement fund or get covered fund is to save for the time after retirement.

Get covered

Insurance. Many see it as an unnecessary evil a drain on resources that has no investment value. It is understandable that many have a problem with insurance companies as there are so many horror stories of people paying their premiums only to be let down by their insurance companies as there are so many horror stories of people paying their premiums only to be let down by their insurance provider in their hour of need. It stands to reason that if you pay your premiums, you should be in a position to receive the benefits of your coverage without question, should an incident occur. This isn’t always the case as less reputable insurance companies fail to pay out as a result of them finding loop holes in insurance contracts that penalize their customers, often for some form of negligence–much to their surprise. Those companies that do pay out often find reasons to pay less than originally agreed based on some technicality. For cars… this can take the form of an adjustment due to the vehicles loss in value over time. Alternatively, many don’t realize that modifications to a car, any modification no matter how insignificant, can result in your insurance being invalidated. Dangerous driving resulting in prosecution from the authority can also exempt insurance companies from some liabilities.

With this being said, it’s important to find insurance companies that are known for the level of coverage they provide. Of course, expect to pay more than their less trustworthy counterparts… but what you lose in additional fees, you’re very likely to gain in additional coverage. This point become particularly important if you’re looking to protect your own personal estate from loss. Let’s take car owners for example: Those who have bought a cheap car for a little run-around… you know… something used for the daily commute and/or shopping trips and school runs… may only want very basic/cheap insurance coverage for their vehicle. After all, repair costs and/or the cost of replacing the car is likely to be affordable, should the insurance policy not provide full coverage following an accident. What’s important is that third-party’s are covered… which they should be by law. How about someone who has bought a Ferrari. In this situation, you could argue that most Ferrari owners probably have an abundance of wealth and resources; therefore money isn’t an issue in the event of a crash. However, it would be wise to seek insurance that provides the most comprehensive coverage possible… as it wont be cheap to personally cover loss or damage to such an expensive vehicle.