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How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation.

The borrower has to cut his monthly expenses to provide for the repayment. The amount to be repaid includes the principal amount of the loan and the interest calculated based on the rate of interest prevailing in the market. This is the traditional method of repayment.

The loan amount is broken into a number of small parts for an easy repayment. The number of parts corresponds with the term of repayment. Thus, if the loan or mortgage is to be repaid in a period of five years, the number of equal parts of the loan will be 60. The repayments are to be made on a monthly or quarterly basis.

An improvement in the method above was made to reduce the burden of a borrower. The borrower is required to pay regular monthly installments as in the earlier method. After a certain number of installments the borrower can pay the remaining balance of the loan with a single balloon payment.

An alternative of the traditional method of repayment is an interest only repayment. In this type of repayment, the borrower is required to pay only the interest. At the end of the term of repayment or any particular time period desired by the borrower, the balance on the loan is repaid in full.

The monthly repayment in the interest only method is far lesser than in the former method. This is because the monthly repayment in case of the former includes both principal and interest. It is on this count that people prefer to repay through the interest only method. However, this method of repayment increases the cost of the loan.

A Repayment vehicle is created to repay the loan or mortgage at the end of the term of repayment. The borrower is required to pay a monthly figure into the repayment vehicle.

Pensions, endowment policies, and individual savings account are the most important repayment vehicles. Pensions are widely used for repayment of the loan or mortgage amount. An added advantage in case of the pension policy is that the employer pays half of the amount of pensions. Thus effectively speaking, the borrower spends only half the amount in the repayment. Being tax free, these repayment vehicles offer a cheap means of repayment.

Another method of repayment which is not very popular but can be used for short term loans is the payment of principal and interest in one installment. This is helpful for people who need funds during contingencies. They can pay off the loan when the situation improves. An advantage of this type of loan is that the interest cost is lesser.

If you find that the methods discussed above are rigid as to the amount of monthly installments and the mode of repayment, then the equal principal payments will be helpful. The interest in this method is calculated in declining balance method. Thus, it means that the repayments change every month according to the reduced balance.

Early or premature repayment of the loan or mortgage (if permitted by the lender) is another repayment method. Before signing any documents for loans and mortgages, one must see properly if the lender does not prohibit early repayment with a penalty clause. Refinancing a loan or remortgaging a mortgage can help customers get rebate for early repayment. These transfer the loan or mortgage to another lender. So the borrowers can benefit from a lower rate of interest and a rebate for early repayment.

Whatever be the method chosen, the ultimate end of it would be the repayment of the loan or mortgage in full. All forms of repayment have their respective pros and cons. A perfect match between the pros and cons of the repayment methods and the individual financial condition must be established in order to derive the best method of repayment. There is not always an easy return from a particular method of repayment. A wrong repayment method can be precarious to ones financial health.

Auto insurance is a minimum requirement for a car owner or driver in every US state, Canadian province and pretty much every country in the world. If you have a car, then auto insurance is something that you must have, period.

The downside, however, is that costs are continuing to rise, so it clearly makes sense to look for ways to reduce some of the expense, whilst still seeking the best coverage available for your dollars. So, lets look at some ways of doing this.

Firstly, use the power of the internet to get multiple auto insurance quotes, as well as utilizing the services of your local neighborhood broker. Try getting different types of quotes from the online direct-sell insurance companies as well as brokers both on the internet and in the real world. Bear in mind here that the auto insurance that is cheapest isnt always going to be the best. For example, is the insurance company known to you? If not, can you be certain that they are financially secure? How confident are you that they will be able to pay out if you have to make an auto insurance claim? Will they still be in business next year or even next week? In other words, if you dont know the company, check out their credentials before you give them your money. Not all auto insurance companies are created equal!

The first slice of the policy is almost always basic liability insurance, covering your liability to others in case of an accident which either injures them or damages their property. Indeed, it is possible to ONLY have this basic cover and still satisfy the legal requirements in many states and countries.

However, if you only have minimum liability coverage and you injure someone, their attorney can go after your personal assets, so, quite correctly, many people (and their insurers) would suggest that minimum liability is a bit of a gamble.

Auto insurance costs will vary dependent on the type of vehicle that you are insuring. Coverage for a flashy sports car or for one in what is considered to be in a high risk group (soft top convertibles, for example) is very different from insuring the family sedan or hatchback. So, when you are thinking of buying a new car, it makes sense to think about the auto insurance costs before you do so, and maybe you might buy a car that "looks good" to insurance companies.

For example, the auto insurance companies are well aware of what type of cars are most often stolen. If you haven't purchased your car yet, find out what cars make this "good list" among auto insurers. Consider how much coverage you really need to buy, and dont over-insure, because the companies will not pay out more than the value of your car no matter how much cover you have been paying for.

For example, consider collision and comprehensive coverage, how much you will be reimbursed for the loss or destruction of your vehicle. Are you carrying $50,000 worth of collision coverage for a $20,000 vehicle?

On the other hand, dont make false economies. If you dont want to pay for comprehensive and collision cover, consider whether you be able to afford to replace it if it was written off? If not, then you need the extra cover, although you clearly dont need the extra cost!

A a general guide, if your car is worth less than $2,000, then it won't be worth it to buy comprehensive and collision. L ikewise, if your car is an ancient relic, say, more than 12 years old, then again, you probably dont need the most comprehensive cover, which can usually give big savings. Consider bearing the risk of having a higher deductible (or excess as it is called in Europe), which is the pat of any claim that you will have to pay before your insurance policy kicks in and pays the rest. The higher the deductible, the higher your potential financial risk, granted, but this will also serve to keep your auto insurance policy costs down.

Buying a low mileage car and keeping your driving licence and record nice and clean will all help keep cots down.

If youre a single males under the age of 25 then the bad news is that you are NOT the auto insurance companies favorite type of driver, and you will pay for it (statistically, this group are most likely to have accidents). Get yourself a nice sensible car, and leave the Ferrari at the dealership until you get yourself a wife and pass your 26th birthday!

Finally, look a other ways that your insurance company might reward you for taking steps that will reduce the risk of a claim, such as fitting your car with an anti-theft device or attending an advanced driver-training course. These kinds of proactive preventative measures are generally welcomed by the auto insurance companies, and are rewarded with reduced insurance fees.

Whether you are a moped rider or a motorcycle rider, you never know when your luck will turn its back towards you and you get involved in some accidents or mishaps. Other than this, your motorbike might get stolen. God forbid if these unwanted things happen; but misfortunes never come by giving you any sort of notice. The repairing or the replacing cost of your motorbike might be a headache for you then. Instead, you can take some preventive measures; buying a motorbike insurance which is cheap and economical is one of them.

There are basically two types of cheap motorbike insurance policy:

1. Specified rider policy: This policy specifically covers the rider, not the bike. You can ride many bikes up to a particular size.

2. Specified bike policy: This policy will insure the motorbike and not the rider. If you want to insure a number of riders on the same bike, this would be a suitable policy.

You can choose from these two policies the one that will fit your budget the best. Again, there are certain things that will affect your rate of premium. If these things are taken care of, then you can significantly lower your premium and thus avail cheap motorbike insurance policy.

Past driving record: You can avail cheap motorcycle insurance if you have not made any claims in the past for driving related accidents.

Security: If you fit some security features in your motorbike like immobilizers, alarms, steering locks, then you can easily avail cheap motorbike insurance.

Type of bike: If your motorbike is a lower performance bike, then you can get motorbike insurance at a cheap price.

Garage and parking: A motorbike kept in a covered and a locked garage will result in significantly lower premiums.

Age: Apart from all these, a middle aged driver can get significantly the motorbike insurance policy at a lower and a cheaper rate.

It is important to look around and shop for your motorbike insurance a little. Only through a detailed hunt for motorbike insurance, you can locate cheap motorbike insurance. It is also advisable to read the fine prints of the policy document. You should also choose a cover which you can afford. Your search for cheap motorbike insurances has become easier now with the availability of the internet facilities and the online method of shopping for cheap motorbike insurance. You can compare hundreds of such cheap motorbike insurance policies and buy the one that fits your needs that best.