After years of unprecedented market gains the recent financial meltdown has caused investors nationwide to wake up with a head-splitting financial hangover. Believe me, I know your pain.
The worst was taking a 90 percent loss while vested in a technology mutual fund. Who could have predicted that a well-run fund could lose? It was managed by top notch, Harvard educated managers. That one hurt a lot. Real money saved over years and lost in mere months.
The security of your investments is becoming more and more important these days. Investors want to be able to anticipate decent returns in the stock market, but the market takes them on a roller coaster ride that would be the envy of any amusement park. One day it's a 200 point rise and setting a new record high on the Dow, then the next a 300 point tumble that takes six weeks to shake off.
If you're like me, you have taken that ride more than once over the years. It's happened in a big way twice in the past decade alone!
The series of highs and lows can leave you with a feeling of hopelessness. How can you know if a company is cooking the books? How can you predict if there will be another terrorist attack that will cripple our Country for months? Who has a crystal ball that can reveal when the next financial market meltdown will wash over us? Whenever these cycles hit personal fortunes are wiped out in a blink of an eye.
You may be thinking, "So what else can I invest in?"
The answer is to invest in real estate...but maybe not in the way the first comes to mind.
Real estate is an asset that you see and touch, is insured, and produces monthly income. Historically it is one of the safest investments available and there are several ways to get started. Here's a few:
1) The "Speculator" Approach - you could become a real estate "speculator" and buy properties with the hope that they will go up in value and allow you to reap windfall profits when you sell. Of course, this type of approach has a large amount of risk which has left large numbers of speculators who were consumed with "Flipping Frenzy" over the last few years in a very tough place when the market turned and did not favor their investment approach.
2) The Landlord Approach - on a more traditional level, you could buy a home, duplex, or small apartment building and rent the property out. Over time as you collect rent your tenants will pay off your mortgage. This does take some time, work, and experience. This approach is rather safe and can result in a good return in both the short and long term. The downside is that there can be a large amount of time required to make this work.
Now what if you find yourself in large group of over 200 Million Americans who want the benefits of real estate investing but don't have the spare time or hard-nosed demeanor needed to be a successful landlord? While not as well known as the first two methods, there is a third approach.
3) The Passive Method - this style of investing is known as making "Private Mortgage Loans". Private Mortgage Loans, when set up properly, can provide your portfolio with a great return in any real estate market. Up, down, flat...it doesn't really matter.
The investment model is simple. You directly loan money, at a very low loan-to-value, against a piece of real estate. The borrower is typically a tried-and-true veteran landlord that has a portfolio of equity-rich properties and also is familiar with the ins-and-outs of finding tenants and managing rental property.
Your return comes in the form of interest payments from your borrower and because you establish the loan terms together you can have the payments come regularly or have them rolled into the loan and paid out in one lump sum when the loan term is over.
To provide you with the safety you want, your investment is secured by a first mortgage. As long as you follow common-sense lending practices then you can enjoy a level of confidence in your investments that the stock market cannot provide.
Private Mortgage Lending is a vehicle that can help you quickly recover from harsh stock market losses. Using this approach you can realize returns greater than 10% and never get called to fix a leaky pipe. Unfortunately, most investors aren't even aware this opportunity exists.
Now that you've read this article, you can't claim ignorance as an excuse. Stop what you are doing and start looking for someone who needs a private mortgage with whom you can do business with. Find a landlord at your local real estate investor association, hit a round of golf together, and see if it makes sense to do business together. Then take action and make your first investment. Start small if it makes you feel better, but get started.
Failure to take action puts you in jeopardy of letting it slide to the bottom of your to-do list. If that happens, in a year you'll wonder why things have not changed for you financially.
Brian Teets is a lifetime resident of Michigan who has endured the ups and downs of the stock market. To request a FREE CD that reveals how you can get started with the safe investment of private mortgage loans, call his office at 734-328-6020 or by visiting his website at http://www.InvestInMichigan.org
Article Source: http://EzineArticles.com/?expert=Brian_Teets
วันเสาร์ที่ 27 ธันวาคม พ.ศ. 2551
Clean Up Your Financials Well in Advance of Your Business Sale
Buying a business is a risky proposition. The buyer is attempting to examine and access all of the risk factors to determine how much to pay, what deal structure to propose, and even whether or not to even make an offer. What if I lose a key customer, employee, or supplier? What if our technology is surpassed by a new, lower-cost solution? What happens if a big company decides to enter our niche? These are just a few of the concerns that make buyers less generous in their offer price and terms.
If your financials are questionable, that may be the deciding factor that diminishes your selling price or even blows up the deal.
Audited financials are the best to put a buyer's mind at ease. For smaller companies, the cost of this is not warranted. The next best are reviewed financials. They show that a CPA has put your accounting process through some review and scrutiny. Compiled statements are OK, but are closer to a book keeper's role than a CPA's approach. Just remember, the buyer's accountant is going to perform due diligence on your financials at a level closer to an audited statements process. If he finds mistakes and inconsistencies, a lack of trust on all other data can develop.
Your business tax returns will be gospel to the buyer because the IRS frowns on companies not reporting a portion of their income and that is what the buyer's bank reviews to determine the financing available for the acquisition.
In the Mergers and Acquisitions business we all rely on "recast" financials to basically remove all of the expenses the owner runs through his business and make the company look more profitable to drive up the selling price. Sophisticated buyers (i.e. acquisition oriented corporations) may not directly confront you on the recasting, but they are not likely to give you full credit in their analysis.
They may even develop some reservations about your character and ethics if the amounts are excessive. They may question your ability to fit in as a good corporate citizen as you transition your business to their institutional corporate structure.
If you are planning on selling your company in three years, why not start eliminating the expenses you run through the business that push the boundaries of business versus personal expenses? In the first year eliminate 33% of the country club, entertainment, business trips, conferences and non-contributing relatives on the payroll. The second year, eliminate another 33% of those and in the year preceding the sale, eliminate them completely.
Imagine the style points you would get from a sophisticated buyer when they discovered that your financials are really your financials with no recasting. Not only that, but you will likely receive a high end purchase price multiple and a greater percentage of cash at close. So, for example, if companies in your industry sell for a range of between 5 and 6.25 X EBITDA, then your company would likely sell at a multiple closer to the 6.25 high end than the 5 low end multiple.
If you had run $200,000 of owner expenses through the business and eliminated that practice you would pay approximately $80,000 in additional taxes. Your recast EBITDA would be higher than your reported EBITDA, but the sophisticated investor might only give you $100,000 credit and would adjust your multiple to the low end. Your recast EBITDA, for example, of $3.2 million would be credited by the buyer at $3.1 million with a valuation multiple of 5 X, resulting in a proposed purchase value of $15.5 million.
Compare this to using your real EBITDA of $3 million, but because it is not recast, your buyer pays a risk reduction premium in valuation multiple and moves you up to 6 X, resulting in a proposed purchase value of $18 million. This is a pretty impressive improvement in selling price for increasing your company's taxable income phased in over the three years prior to your business sale.
You may be asking yourself skeptically, how can this be? Remember, buying a business is all about minimizing the buyer's perception of risk. Now your financials are rock solid and do not require a long explanation on why they are really better than reported to the IRS.
This is the most powerful risk reduction strategy available to business sellers. You will differentiate your company from every other acquisition target the buyer has reviewed. You increase your credibility on every other piece of information that you have provided during the courting and due diligence process. Their opinion on your business acumen, management ability, judgment, and ethics has been elevated. The buyer feels more confident that this will be a successful acquisition. For that they will pay a premium.
Dave Kauppi is the editor of The Exit Strategist Newsletter, a Merger and Acquisition Advisor and President of MidMarket Capital, representing owners in the sale of privately held businesses. We provide Wall Street style investment banking services to lower mid market companies at a size appropriate fee structure.
Article Source: http://EzineArticles.com/?expert=Dave_Kauppi
If your financials are questionable, that may be the deciding factor that diminishes your selling price or even blows up the deal.
Audited financials are the best to put a buyer's mind at ease. For smaller companies, the cost of this is not warranted. The next best are reviewed financials. They show that a CPA has put your accounting process through some review and scrutiny. Compiled statements are OK, but are closer to a book keeper's role than a CPA's approach. Just remember, the buyer's accountant is going to perform due diligence on your financials at a level closer to an audited statements process. If he finds mistakes and inconsistencies, a lack of trust on all other data can develop.
Your business tax returns will be gospel to the buyer because the IRS frowns on companies not reporting a portion of their income and that is what the buyer's bank reviews to determine the financing available for the acquisition.
In the Mergers and Acquisitions business we all rely on "recast" financials to basically remove all of the expenses the owner runs through his business and make the company look more profitable to drive up the selling price. Sophisticated buyers (i.e. acquisition oriented corporations) may not directly confront you on the recasting, but they are not likely to give you full credit in their analysis.
They may even develop some reservations about your character and ethics if the amounts are excessive. They may question your ability to fit in as a good corporate citizen as you transition your business to their institutional corporate structure.
If you are planning on selling your company in three years, why not start eliminating the expenses you run through the business that push the boundaries of business versus personal expenses? In the first year eliminate 33% of the country club, entertainment, business trips, conferences and non-contributing relatives on the payroll. The second year, eliminate another 33% of those and in the year preceding the sale, eliminate them completely.
Imagine the style points you would get from a sophisticated buyer when they discovered that your financials are really your financials with no recasting. Not only that, but you will likely receive a high end purchase price multiple and a greater percentage of cash at close. So, for example, if companies in your industry sell for a range of between 5 and 6.25 X EBITDA, then your company would likely sell at a multiple closer to the 6.25 high end than the 5 low end multiple.
If you had run $200,000 of owner expenses through the business and eliminated that practice you would pay approximately $80,000 in additional taxes. Your recast EBITDA would be higher than your reported EBITDA, but the sophisticated investor might only give you $100,000 credit and would adjust your multiple to the low end. Your recast EBITDA, for example, of $3.2 million would be credited by the buyer at $3.1 million with a valuation multiple of 5 X, resulting in a proposed purchase value of $15.5 million.
Compare this to using your real EBITDA of $3 million, but because it is not recast, your buyer pays a risk reduction premium in valuation multiple and moves you up to 6 X, resulting in a proposed purchase value of $18 million. This is a pretty impressive improvement in selling price for increasing your company's taxable income phased in over the three years prior to your business sale.
You may be asking yourself skeptically, how can this be? Remember, buying a business is all about minimizing the buyer's perception of risk. Now your financials are rock solid and do not require a long explanation on why they are really better than reported to the IRS.
This is the most powerful risk reduction strategy available to business sellers. You will differentiate your company from every other acquisition target the buyer has reviewed. You increase your credibility on every other piece of information that you have provided during the courting and due diligence process. Their opinion on your business acumen, management ability, judgment, and ethics has been elevated. The buyer feels more confident that this will be a successful acquisition. For that they will pay a premium.
Dave Kauppi is the editor of The Exit Strategist Newsletter, a Merger and Acquisition Advisor and President of MidMarket Capital, representing owners in the sale of privately held businesses. We provide Wall Street style investment banking services to lower mid market companies at a size appropriate fee structure.
Article Source: http://EzineArticles.com/?expert=Dave_Kauppi
Forex - The Beginner's Guide
If you are a beginner and you are want to gain knowledge about the Forex market then you need to know about the Forex beginner's guide.
If you want to become the full time trader then you need to practice for two years an learn about the Forex market. You should learn about the different techniques that are used for trading in Forex. You should know the different ways of earning huge profit in this huge market of profit and loss. If you are a beginner and you are searching for the guide that can help you to get the knowledge about the market then The Beginners Guide is the best option for you:
1.) Search For The Forex Education Provider:-
There is wide difference between the gambling and investing in Forex. You should try to learn each and every thing about the Forex. You should learn about the different ways that you can use for investing in market. if you want to gain the perfect knowledge about the Forex then you need to search for the trustworthy source that can fulfill your knowledge of getting the perfect information about the Forex market. There is no limit for learning. Learning can take place at any age. There is no age limit for learning.
2.) Find A Forex Broker:
There are many Forex brokers that don't know the importance of time. You would find that the Forex brokers are of different shapes and size. You can choose the broker as per your requirements. You broker would help you to know the different trading strategies that would aid you to earn huge profit as soon as possible. You would also come to know the legal strategies of trading in Forex. You would also come to know about the appetite of risk. Before selecting the broker you should do little bit of research work that would help you to know about the basic concepts of trading. You should try to find a source that would show you difference between the brokers and you can choose the perfect broker for yourself.
3.) Search for Trading System:
You would not have any difficulty in searching the trading system. There are many systems that can help you to earn profits and fulfill you dreams. If you do research work then you would not have problem in selecting the trading system that would fit into your personality.
4.) Practice:
Practice makes the man perfect. If you do the practice of trading then you would get the desired fruits. If you want to improve your system then you need to recollect the teaching of your Forex class. If you want to become a successful trader then you need to open a demo account.
5.) Learning:
Learning is a continuous process. Learning does not have any end. Learning would improve your trade. If you stop learning then you would not be able to earn the desired results. Learning can take place at any age. There is no age limit for learning.
John Horsch writes premium high quality articles ranging from Internet Marketing to Gardening. Each is researched and edited with the greatest degree of professionalism. John has been writing articles for Internet consumption since 2001. Great Forex Tips and Reviews: http://eliteprofitproducts.com/forexreview/
Article Source: http://EzineArticles.com/?expert=John_Horsch
If you want to become the full time trader then you need to practice for two years an learn about the Forex market. You should learn about the different techniques that are used for trading in Forex. You should know the different ways of earning huge profit in this huge market of profit and loss. If you are a beginner and you are searching for the guide that can help you to get the knowledge about the market then The Beginners Guide is the best option for you:
1.) Search For The Forex Education Provider:-
There is wide difference between the gambling and investing in Forex. You should try to learn each and every thing about the Forex. You should learn about the different ways that you can use for investing in market. if you want to gain the perfect knowledge about the Forex then you need to search for the trustworthy source that can fulfill your knowledge of getting the perfect information about the Forex market. There is no limit for learning. Learning can take place at any age. There is no age limit for learning.
2.) Find A Forex Broker:
There are many Forex brokers that don't know the importance of time. You would find that the Forex brokers are of different shapes and size. You can choose the broker as per your requirements. You broker would help you to know the different trading strategies that would aid you to earn huge profit as soon as possible. You would also come to know the legal strategies of trading in Forex. You would also come to know about the appetite of risk. Before selecting the broker you should do little bit of research work that would help you to know about the basic concepts of trading. You should try to find a source that would show you difference between the brokers and you can choose the perfect broker for yourself.
3.) Search for Trading System:
You would not have any difficulty in searching the trading system. There are many systems that can help you to earn profits and fulfill you dreams. If you do research work then you would not have problem in selecting the trading system that would fit into your personality.
4.) Practice:
Practice makes the man perfect. If you do the practice of trading then you would get the desired fruits. If you want to improve your system then you need to recollect the teaching of your Forex class. If you want to become a successful trader then you need to open a demo account.
5.) Learning:
Learning is a continuous process. Learning does not have any end. Learning would improve your trade. If you stop learning then you would not be able to earn the desired results. Learning can take place at any age. There is no age limit for learning.
John Horsch writes premium high quality articles ranging from Internet Marketing to Gardening. Each is researched and edited with the greatest degree of professionalism. John has been writing articles for Internet consumption since 2001. Great Forex Tips and Reviews: http://eliteprofitproducts.com/forexreview/
Article Source: http://EzineArticles.com/?expert=John_Horsch
วันเสาร์ที่ 20 ธันวาคม พ.ศ. 2551
Debt Help - How to Tell If a Credit Repair Company is a Scam
If you are looking for Credit Repair, the following article will help you tell if the company you are dealing with is a scam or not.
Credit Repair Scam Indicators:
1. If a company wants you to pay for credit repair services before they provide any services, it may be a scam. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
2. If a company refuses to tell you your rights and what you can do for yourself for free when asked, it may be a scam.
3. If the company recommends that you do not contact any of the three major national credit reporting companies directly, it may be a scam.
4. If the company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current, beware, it probably is a scam. No one can wash your report completely legally if the information is accurate and timely.
5. If the company suggests that you try to invent a "new" credit identity and then, a new credit report by applying for an Employer Identification Number to use instead of your Social Security number. This is a a good indicator of a scam.
6. If the company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness. Disputing the information may slow down the process, but it usually will not clear your report of any negative information.
Be advised:
If you follow illegal advice and commit fraud as some credit repair companies suggest, you may find yourself with a legal issue as well. You would be breaking a federal crime if you lie on a loan or credit application. If you misrepresent your Social Security number to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses and false information. Which may cause you to be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information. So don't be persuaded to follow bad and illegal advice.
Here is a key fact...Absolutely No one can legally remove accurate and timely negative information from your credit report. If you feel the information is incorrect, the law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete, but it will not be completely removed. Also, it is free for you to do this. You can hire hire a company to investigate this on your behalf, but anything a credit repair clinic can do legally, you can do for yourself at little or no cost if you want to put in the work. According to the Fair Credit Reporting Act:
If you are denied credit:
The law entitles you to a free report if a company takes "adverse action" against you, like denying your application for credit, insurance, or employment. However, you have to ask for your report within 60 days of receiving notice of the action or denial. The notice will give you the name, address, and phone number of the consumer reporting company that has denied you credit. You should make note of this for you free credit report request.
Everyone is also entitled to one free report a year, if you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud, including identity theft.
All the nationwide consumer reporting companies like TransUnion, Equifax, Experian, and others provide you with a free copy of your credit report once every 12 months, but you have to ask for it. The three main credit reporting companies have a central website, a toll-free telephone number, and a mailing address for consumers to order a free annual credit report.
For more information and help with debt problems and credit repair:
Help With Debt Problems
If you would our recommendations and reviews on debt settlement companies and credit repair companies, please visit: http://thedebtcalvary.com Your online source for debt help.
Article Source: http://EzineArticles.com/?expert=Kevin_Scott_Smith
Credit Repair Scam Indicators:
1. If a company wants you to pay for credit repair services before they provide any services, it may be a scam. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
2. If a company refuses to tell you your rights and what you can do for yourself for free when asked, it may be a scam.
3. If the company recommends that you do not contact any of the three major national credit reporting companies directly, it may be a scam.
4. If the company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current, beware, it probably is a scam. No one can wash your report completely legally if the information is accurate and timely.
5. If the company suggests that you try to invent a "new" credit identity and then, a new credit report by applying for an Employer Identification Number to use instead of your Social Security number. This is a a good indicator of a scam.
6. If the company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness. Disputing the information may slow down the process, but it usually will not clear your report of any negative information.
Be advised:
If you follow illegal advice and commit fraud as some credit repair companies suggest, you may find yourself with a legal issue as well. You would be breaking a federal crime if you lie on a loan or credit application. If you misrepresent your Social Security number to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses and false information. Which may cause you to be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information. So don't be persuaded to follow bad and illegal advice.
Here is a key fact...Absolutely No one can legally remove accurate and timely negative information from your credit report. If you feel the information is incorrect, the law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete, but it will not be completely removed. Also, it is free for you to do this. You can hire hire a company to investigate this on your behalf, but anything a credit repair clinic can do legally, you can do for yourself at little or no cost if you want to put in the work. According to the Fair Credit Reporting Act:
If you are denied credit:
The law entitles you to a free report if a company takes "adverse action" against you, like denying your application for credit, insurance, or employment. However, you have to ask for your report within 60 days of receiving notice of the action or denial. The notice will give you the name, address, and phone number of the consumer reporting company that has denied you credit. You should make note of this for you free credit report request.
Everyone is also entitled to one free report a year, if you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud, including identity theft.
All the nationwide consumer reporting companies like TransUnion, Equifax, Experian, and others provide you with a free copy of your credit report once every 12 months, but you have to ask for it. The three main credit reporting companies have a central website, a toll-free telephone number, and a mailing address for consumers to order a free annual credit report.
For more information and help with debt problems and credit repair:
Help With Debt Problems
If you would our recommendations and reviews on debt settlement companies and credit repair companies, please visit: http://thedebtcalvary.com Your online source for debt help.
Article Source: http://EzineArticles.com/?expert=Kevin_Scott_Smith
Plug in Points to See How Your Financing Will Pay Off
The home mortgage loan sector is one of the most innovative financial markets. When you consider mortgage points it adds confusion to an already complicated process. However, most buyers do not understand the concept of points and they do not ask for help or clarification to learn about it. They become overwhelmed and have to depend on the mercy of the lender's offer.
The concept is quite simple. Mortgage points are fees paid to a lender for a loan. Shortly the points are usually linked to interest rates with the more points you pay for, the lower the interest rate. Another way to view them would be as pre-paid fees. If you pay points now you will save money in interest payments later.
If you have the cash on hand to pay points and you still cannot decide if you should pay them to get a lower interest rate ask yourself what you would do with the money if not spent on points. If you are buying a home you probably have many needs for the extra money but do not be short-sighted. Invest for the long term.
Most lenders usually charge one point for the loan origination fee and additional points on loans that have interest rates under the current market rate. The lender gets some money up front in exchange for a lower interest rate. It is a win situation for both parties. You can check the newspaper or the Internet for current rates and points being offered and their combinations, which are many and negotiable.
Some mortgage points will reduce the interest rate and some will not. Discount points are based on how much money you borrow. One point equals 1% of the loan. For example, 1% of $100,000 would be $1,000. You can expect a reduction of about one quarter percent for each point paid. Paying points does not reduce the amount borrowed but how much you will be paying back. So, paying points depends on a lot of factors.
If you do not have the cash to pay points then it is a moot point. (No pun intended). The main thing to consider is how long you plan to keep your home. In other words, will you keep the home past the break-even point? That is when your accumulated monthly savings exceed what you have paid in points to get the interest rate down.
Paying points is probably a good investment if you plan to keep the home five years or more. Points can be considered an investment when it continuously yields a savings the longer you stay in the home.
A chart can be prepared to show you the options and when the break-even point occurs. Ask the lender to quote points in dollar amounts so you can easily see how much you are spending.
It is thought the mortgage point system is used only in the United States. That is probably a plus for the creators of our financial system which enables more families to purchase a home who otherwise would not qualify.
This article was written by Arek Zbikowski. For more tips and information on saving money with mortgage points feel free to visit my site at http://www.atozmortgageguide.com
Article Source: http://EzineArticles.com/?expert=Arek_Zbikowski
The concept is quite simple. Mortgage points are fees paid to a lender for a loan. Shortly the points are usually linked to interest rates with the more points you pay for, the lower the interest rate. Another way to view them would be as pre-paid fees. If you pay points now you will save money in interest payments later.
If you have the cash on hand to pay points and you still cannot decide if you should pay them to get a lower interest rate ask yourself what you would do with the money if not spent on points. If you are buying a home you probably have many needs for the extra money but do not be short-sighted. Invest for the long term.
Most lenders usually charge one point for the loan origination fee and additional points on loans that have interest rates under the current market rate. The lender gets some money up front in exchange for a lower interest rate. It is a win situation for both parties. You can check the newspaper or the Internet for current rates and points being offered and their combinations, which are many and negotiable.
Some mortgage points will reduce the interest rate and some will not. Discount points are based on how much money you borrow. One point equals 1% of the loan. For example, 1% of $100,000 would be $1,000. You can expect a reduction of about one quarter percent for each point paid. Paying points does not reduce the amount borrowed but how much you will be paying back. So, paying points depends on a lot of factors.
If you do not have the cash to pay points then it is a moot point. (No pun intended). The main thing to consider is how long you plan to keep your home. In other words, will you keep the home past the break-even point? That is when your accumulated monthly savings exceed what you have paid in points to get the interest rate down.
Paying points is probably a good investment if you plan to keep the home five years or more. Points can be considered an investment when it continuously yields a savings the longer you stay in the home.
A chart can be prepared to show you the options and when the break-even point occurs. Ask the lender to quote points in dollar amounts so you can easily see how much you are spending.
It is thought the mortgage point system is used only in the United States. That is probably a plus for the creators of our financial system which enables more families to purchase a home who otherwise would not qualify.
This article was written by Arek Zbikowski. For more tips and information on saving money with mortgage points feel free to visit my site at http://www.atozmortgageguide.com
Article Source: http://EzineArticles.com/?expert=Arek_Zbikowski
Reclaim Unlawful Bank Charges
Illegal bank charges, Unlawful bank charges, and Unfair bank charges. So you've been charged by your bank and you don't understand why? Here is a practical guide to reclaim illegal bank charges, unlawful bank charges, and plain unfair bank charges.
Currently there is a court case in progress to decide if the bank are making money from illegal bank charges, unlawful bank charges, and unfair bank charges. As banks do not have to repay bank charges at the moment, they are not doing so unless they feel that the illegal bank charges, unlawful bank charges, or unfair bank charges are in fact bank error. Bank Error.
Banks to error on time to time, but it is very rare that a illegal bank charge is caused by bank error. However in some cases employees do make mistakes. Let us say for example that you have a packaged account (an account that you pay a monthly charge for, and in return you get stacks of benefits and discounts and services included). If you decide that you no longer want this account and if you are entitled to remove the deal from your account you go into your bank to have this removed. You need to sign something to agree the removal (as banks keep an extensive paper trail as proof of EVERYTHING), and in return you should get a receipt. If for some reason your account doesn't get changed to a standard account and you continue to get charged, resulting an an un-arranged bank charge, this is classed as bank error. In this instance you need to take your receipt. to the bank and demand a refund. This can't be refused. Unfortunately as I have just mentioned banks keep evidence of everything done and bank error is uncommon. Reasons for getting bank charges. Guaranteed Card Payment Fee.
Unless you can keep on top of your money, using a debit card can be very dangerous. People believe that if they don't have the money then the card will be refused. Unfortunately not in every case. Shops and ATMs do not have real time communication with the banks. At times it is impossible to know if there is money in the account. A shop has what is called a floor limit on their card transactions and all transactions under a pre-specified limit will authorize without contacting the bank. on top of that, retailers have the option to hold that payment on their systems for up to 6 months without communicating that information to the bank. So how could the bank possibly know if you have spent the money? It can't. It is up to you to keep track of how much you have been spending. This also applies to cash machines, however cash machines do generally update much quicker. Paid & Unpaid Referral Fees.
Direct Debits and Standing orders are a major cause of bank charges. If you have a direct debit or standing order that is due out of your account and you do not have the money for it you will get a charge. in some cases the direct debit won't even get paid to the company so the company will re-request the direct debit and again if you don't have the cash then you will get charged. Even if you cancel a direct debit with the bank, the company can present the direct debit instruction under another reference number and the money will still be paid (or not as in some cases), resulting in more charges. The banks have little control over this system as there are literally millions of direct debit instructions and it is impossible to review and authorize each one individually. If you are not going to have the money in your account, cancel the direct debit about 3-4 working days before it is due. A little tip on managing direct debits. if you have a direct debit due out on the 10th for example the direct debit will leave the account on the previous working day. i.e. in most cases it will leave on the 9th. However if the 10th happens to fall on a Saturday, Sunday or a Monday, then the direct debit will actually leave the account on the Friday! Learn and understand this phrase "I need to have the money for my direct debit in my account on the last working day before the direct debit is due at the latest". Say that out loud 3 times. Un-arranged Borrowing Charges.
If you are taken overdrawn at any point in that month then the bank will apply a charge to your account. The charge will leave the account on the last working day of the month. In the banks eyes they say this is to allow you replace the money and find money to cover the charges. They let you know roughly 2 weeks in advance. In reality the charge is applied on the last working day of the month so the customer is then overdrawn on the first working day of the next month and so gets a charge at the end of the next month too (and so on and so fourth). Credit Zones (commonly known as the overdraft).
People will argue with a bank that the charges they have been given are illegal and should not have been applied as they do not have an overdraft facility on the account. Wrong. There are Arranged overdrafts, and Un-arranged overdrafts. The long and short of it is, everyone has the facility and is free to use it. The only difference is the charges. For an arranged overdraft there is no monthly maintenance fee and there is a small monthly rate of interest which is usually around 1.5% per month. For an un-arranged overdraft there is a monthly charge and a higher rate of interest. The bottom line is, you CAN go overdrawn weather you have agreed the facility or not. My advice to you is to arrange the facility if you have the option - would you prefer a direct debit to come out of your arranged overdraft if you do not have the funds for it, or would you prefer it to come out of an un-arranged overdraft and get charged for the luxury? Don't fight the charge, Address the issue.
When it comes to bank charges, the banks do have you be the short and curlys. You have agreed to accept the charges and you are contractually bound to them. Instead of kicking up a fuss about them you need to grab the bull by the horns and address the issue. Go into your bank and speak to someone about it, but instead of shouting and screaming the odds at the first employee you can get your hands on, ask them for help. At the end of the day branch and call canter employees have not set the rules, they have not applied the charge manually to your account have they? No. So give them a break. These are the people who can advise you best on what to do. They will tell it like it is, and weather or not it is what you want to hear, it is the best way forward. You need to establish exactly how much you are due to be charged and the days that they will be coming out of your accounts. You need to account for that money, and make sure it is there the working day before the charge is due. This is the only way to break the charge cycle. You may not want to pay the charge and fight it, but in the long run you could end up with thousands of pounds worth of debt and a ruined credit file. Remember that the banks are in court waiting for a ruling - let the FSA fight it out with them, not you. Your job is to keep your charges minimal in the event that the courts rule in banks favour. Prevention is better than the cure.
Be smart with your money - avoid the charges in the first place. If you have had problems with card payments - pay in cash. If direct debits are causing you issues - contact the company and ask them to send you a giro. Your local branch can tell you what money you have available, so use the facility. Use online banking to keep a track of your money - it takes 2 minutes to log on to your account online and check how much money is available.
With any luck the courts will rule against the banks and you will be able to reclaim anything you have paid. We will address that issue when it comes about.
http://www.unlawful-bank-charges.co.uk
Article Source: http://EzineArticles.com/?expert=Chris_Braithwaite
Currently there is a court case in progress to decide if the bank are making money from illegal bank charges, unlawful bank charges, and unfair bank charges. As banks do not have to repay bank charges at the moment, they are not doing so unless they feel that the illegal bank charges, unlawful bank charges, or unfair bank charges are in fact bank error. Bank Error.
Banks to error on time to time, but it is very rare that a illegal bank charge is caused by bank error. However in some cases employees do make mistakes. Let us say for example that you have a packaged account (an account that you pay a monthly charge for, and in return you get stacks of benefits and discounts and services included). If you decide that you no longer want this account and if you are entitled to remove the deal from your account you go into your bank to have this removed. You need to sign something to agree the removal (as banks keep an extensive paper trail as proof of EVERYTHING), and in return you should get a receipt. If for some reason your account doesn't get changed to a standard account and you continue to get charged, resulting an an un-arranged bank charge, this is classed as bank error. In this instance you need to take your receipt. to the bank and demand a refund. This can't be refused. Unfortunately as I have just mentioned banks keep evidence of everything done and bank error is uncommon. Reasons for getting bank charges. Guaranteed Card Payment Fee.
Unless you can keep on top of your money, using a debit card can be very dangerous. People believe that if they don't have the money then the card will be refused. Unfortunately not in every case. Shops and ATMs do not have real time communication with the banks. At times it is impossible to know if there is money in the account. A shop has what is called a floor limit on their card transactions and all transactions under a pre-specified limit will authorize without contacting the bank. on top of that, retailers have the option to hold that payment on their systems for up to 6 months without communicating that information to the bank. So how could the bank possibly know if you have spent the money? It can't. It is up to you to keep track of how much you have been spending. This also applies to cash machines, however cash machines do generally update much quicker. Paid & Unpaid Referral Fees.
Direct Debits and Standing orders are a major cause of bank charges. If you have a direct debit or standing order that is due out of your account and you do not have the money for it you will get a charge. in some cases the direct debit won't even get paid to the company so the company will re-request the direct debit and again if you don't have the cash then you will get charged. Even if you cancel a direct debit with the bank, the company can present the direct debit instruction under another reference number and the money will still be paid (or not as in some cases), resulting in more charges. The banks have little control over this system as there are literally millions of direct debit instructions and it is impossible to review and authorize each one individually. If you are not going to have the money in your account, cancel the direct debit about 3-4 working days before it is due. A little tip on managing direct debits. if you have a direct debit due out on the 10th for example the direct debit will leave the account on the previous working day. i.e. in most cases it will leave on the 9th. However if the 10th happens to fall on a Saturday, Sunday or a Monday, then the direct debit will actually leave the account on the Friday! Learn and understand this phrase "I need to have the money for my direct debit in my account on the last working day before the direct debit is due at the latest". Say that out loud 3 times. Un-arranged Borrowing Charges.
If you are taken overdrawn at any point in that month then the bank will apply a charge to your account. The charge will leave the account on the last working day of the month. In the banks eyes they say this is to allow you replace the money and find money to cover the charges. They let you know roughly 2 weeks in advance. In reality the charge is applied on the last working day of the month so the customer is then overdrawn on the first working day of the next month and so gets a charge at the end of the next month too (and so on and so fourth). Credit Zones (commonly known as the overdraft).
People will argue with a bank that the charges they have been given are illegal and should not have been applied as they do not have an overdraft facility on the account. Wrong. There are Arranged overdrafts, and Un-arranged overdrafts. The long and short of it is, everyone has the facility and is free to use it. The only difference is the charges. For an arranged overdraft there is no monthly maintenance fee and there is a small monthly rate of interest which is usually around 1.5% per month. For an un-arranged overdraft there is a monthly charge and a higher rate of interest. The bottom line is, you CAN go overdrawn weather you have agreed the facility or not. My advice to you is to arrange the facility if you have the option - would you prefer a direct debit to come out of your arranged overdraft if you do not have the funds for it, or would you prefer it to come out of an un-arranged overdraft and get charged for the luxury? Don't fight the charge, Address the issue.
When it comes to bank charges, the banks do have you be the short and curlys. You have agreed to accept the charges and you are contractually bound to them. Instead of kicking up a fuss about them you need to grab the bull by the horns and address the issue. Go into your bank and speak to someone about it, but instead of shouting and screaming the odds at the first employee you can get your hands on, ask them for help. At the end of the day branch and call canter employees have not set the rules, they have not applied the charge manually to your account have they? No. So give them a break. These are the people who can advise you best on what to do. They will tell it like it is, and weather or not it is what you want to hear, it is the best way forward. You need to establish exactly how much you are due to be charged and the days that they will be coming out of your accounts. You need to account for that money, and make sure it is there the working day before the charge is due. This is the only way to break the charge cycle. You may not want to pay the charge and fight it, but in the long run you could end up with thousands of pounds worth of debt and a ruined credit file. Remember that the banks are in court waiting for a ruling - let the FSA fight it out with them, not you. Your job is to keep your charges minimal in the event that the courts rule in banks favour. Prevention is better than the cure.
Be smart with your money - avoid the charges in the first place. If you have had problems with card payments - pay in cash. If direct debits are causing you issues - contact the company and ask them to send you a giro. Your local branch can tell you what money you have available, so use the facility. Use online banking to keep a track of your money - it takes 2 minutes to log on to your account online and check how much money is available.
With any luck the courts will rule against the banks and you will be able to reclaim anything you have paid. We will address that issue when it comes about.
http://www.unlawful-bank-charges.co.uk
Article Source: http://EzineArticles.com/?expert=Chris_Braithwaite
วันอังคารที่ 16 ธันวาคม พ.ศ. 2551
The Top Ten Questions to Test Your Tax Preparer
Introduction
While the franchised tax prep chains do have their own tax prep training curriculum, they don't always adhere to the "don't pass, don't pay" policy which is supposed to eliminate substandard preparers from their roster. Here are ten questions along with their answers that you can use to make sure that the person you are having prepare your taxes knows what they are doing. Use 1 or more of them and if they can't answer these simplistic questions, you will be better off going with someone who can.
1. If it's cheaper to file the 1040A can I file with that form and deduct my mortgage interest?
Answer: It's usually cheaper to file with the 1040A because the options on deductions are limited to student tuition and loan interest. Generally the more forms involved means more deductions for you but the cost of preparation will be higher. And no, you cannot use the 1040A and take the mortgage interest deduction.
2. I have a W-2 from the previous tax year I didn't get until after I filed last year, can I use it for this year?
Answer: No, the proper way to handle this error is to refile for the prior year with the additional W2 and not include it on this year's return.
3. My spouse has an outstanding student loan and they will take my part of the refund to pay his loan, should I file separate?
Answer: Not necessarily, there is a form called the Injured Spouse form that will allow you to appeal to the IRS to keep your portion of the tax refund. Filing separate causes you to lose your Earned Income Credit and other tax credits as well. The form you need is #8379 and will allow you to file jointly, you will not however be able to file electronically, it must be mailed in, this may change for tax year 2009.
4. What is the name of the form I will need to file if I own a small business that is a sole proprietorship?
Answer: A regular 1040 with a Schedule C will work just fine for any small business, there may be additional forms to file for Automobile expenses, etc. If your business is a partnership you will need a Form 1065, if it's an S-Corp, you will need an 1120S and if it's a C-Corp, an 1120.
5. I just got a divorce at the beginning of this year (2009) can I file single for 2008?
Answer: No. You must use the status you were in as of December 31st of the tax year you are filing. There needs to be one more civil moment between the two of you before you part ways permanently so that you can sign that final tax return as a married couple.
6. My 8 year old cousin lived with me all year; can I use him for Earned Income Credit?
Answer: That depends. If you have full legal custody of your cousin and have adopted him as your child, yes. If not, then no, the dependents you use for EIC have to be your children or adopted children. Recently, this has become a problem for the IRS because it seems that groups of people have gotten into the habit of dependent sharing. Only two dependents are needed for the big payoff in Earned Income Credit, so in many communities it is not unnatural to have families claiming kids that aren't theirs often juggling the kids between those who would benefit most from having the extra deductions. Any perceived fraud in this area can get all parties involved disqualified from collecting EIC for up to ten years.
7. I live in my mother's house with my children can I still claim Head of Household?
Answer: If there is someone else in the household, paying bills, rent, mortgage, groceries, etc, then the answer is no. Head of Household is a designation reserved for a single parent, or someone caring for elderly parents who do not have an income to help with the expenses. This is where a lot of fraud comes in as well, because there are those married or cohabitating couples who have four children and each will claim HOH status to get the maximum benefit and the maximum Earned Income Credit amounts. You cannot be both married AND Head of Household (ask any husband that one).
8. My girlfriend doesn't work and stays home to take care of the kids can I claim her as a dependent?
Answer: No. Even if you pay all rent, bills, etc and provide her with a car, phone and clothing, there is no legal way to claim her as a dependent if she is not your wife. Unfortunately, engagement rings are not deductible either; just think of it as an investment in the future. You can however claim the kids, if they are yours and no one else can.
9. I have to wear a suit to work; can I deduct the expense of dry cleaning, purchases of suits, etc.?
Answer: To be able to deduct work clothing, that clothing must be a uniform of some sort that would not normally be worn anywhere but work. Suits would not qualify and neither would dresses, blouses, etc. Overalls worn for mechanic work or medical related clothing would.
10. Is itemizing my deductions really a benefit to me?
Answer: That depends. Everyone is entitled to the standard deduction of whatever it happens to be that year. Unless you own a home and pay mortgage interest, most of the time the rest of your deductions won't get you over that standard deduction hump. If the preparer is telling you to itemize and you are a renter, remember that they get paid more in preparing a 1040 with a bunch of schedules than they do with a 1040A or 1040EZ with few if any deductions. If you add all your itemized deductions without a mortgage interest payment and they equal just at what your standard deduction would be, save the money on the prep and go with a 1040A. This answer would change if you had children or were expecting EIC or additional refundable tax credits.
David Roberts, CFE, CQBPA, MBA, lives in Kissimmee, Florida with his four girls, three dogs, two snakes and one wife. He has been a member of the Association of Certified Fraud Examiners for five years and has been studying fraud for longer than that. He is the owner of Homesoon Accounting Services which specializes in Quickbooks Consultations and Fraud Prevention and Detection.
Article Source: http://EzineArticles.com/?expert=David_S_Roberts
While the franchised tax prep chains do have their own tax prep training curriculum, they don't always adhere to the "don't pass, don't pay" policy which is supposed to eliminate substandard preparers from their roster. Here are ten questions along with their answers that you can use to make sure that the person you are having prepare your taxes knows what they are doing. Use 1 or more of them and if they can't answer these simplistic questions, you will be better off going with someone who can.
1. If it's cheaper to file the 1040A can I file with that form and deduct my mortgage interest?
Answer: It's usually cheaper to file with the 1040A because the options on deductions are limited to student tuition and loan interest. Generally the more forms involved means more deductions for you but the cost of preparation will be higher. And no, you cannot use the 1040A and take the mortgage interest deduction.
2. I have a W-2 from the previous tax year I didn't get until after I filed last year, can I use it for this year?
Answer: No, the proper way to handle this error is to refile for the prior year with the additional W2 and not include it on this year's return.
3. My spouse has an outstanding student loan and they will take my part of the refund to pay his loan, should I file separate?
Answer: Not necessarily, there is a form called the Injured Spouse form that will allow you to appeal to the IRS to keep your portion of the tax refund. Filing separate causes you to lose your Earned Income Credit and other tax credits as well. The form you need is #8379 and will allow you to file jointly, you will not however be able to file electronically, it must be mailed in, this may change for tax year 2009.
4. What is the name of the form I will need to file if I own a small business that is a sole proprietorship?
Answer: A regular 1040 with a Schedule C will work just fine for any small business, there may be additional forms to file for Automobile expenses, etc. If your business is a partnership you will need a Form 1065, if it's an S-Corp, you will need an 1120S and if it's a C-Corp, an 1120.
5. I just got a divorce at the beginning of this year (2009) can I file single for 2008?
Answer: No. You must use the status you were in as of December 31st of the tax year you are filing. There needs to be one more civil moment between the two of you before you part ways permanently so that you can sign that final tax return as a married couple.
6. My 8 year old cousin lived with me all year; can I use him for Earned Income Credit?
Answer: That depends. If you have full legal custody of your cousin and have adopted him as your child, yes. If not, then no, the dependents you use for EIC have to be your children or adopted children. Recently, this has become a problem for the IRS because it seems that groups of people have gotten into the habit of dependent sharing. Only two dependents are needed for the big payoff in Earned Income Credit, so in many communities it is not unnatural to have families claiming kids that aren't theirs often juggling the kids between those who would benefit most from having the extra deductions. Any perceived fraud in this area can get all parties involved disqualified from collecting EIC for up to ten years.
7. I live in my mother's house with my children can I still claim Head of Household?
Answer: If there is someone else in the household, paying bills, rent, mortgage, groceries, etc, then the answer is no. Head of Household is a designation reserved for a single parent, or someone caring for elderly parents who do not have an income to help with the expenses. This is where a lot of fraud comes in as well, because there are those married or cohabitating couples who have four children and each will claim HOH status to get the maximum benefit and the maximum Earned Income Credit amounts. You cannot be both married AND Head of Household (ask any husband that one).
8. My girlfriend doesn't work and stays home to take care of the kids can I claim her as a dependent?
Answer: No. Even if you pay all rent, bills, etc and provide her with a car, phone and clothing, there is no legal way to claim her as a dependent if she is not your wife. Unfortunately, engagement rings are not deductible either; just think of it as an investment in the future. You can however claim the kids, if they are yours and no one else can.
9. I have to wear a suit to work; can I deduct the expense of dry cleaning, purchases of suits, etc.?
Answer: To be able to deduct work clothing, that clothing must be a uniform of some sort that would not normally be worn anywhere but work. Suits would not qualify and neither would dresses, blouses, etc. Overalls worn for mechanic work or medical related clothing would.
10. Is itemizing my deductions really a benefit to me?
Answer: That depends. Everyone is entitled to the standard deduction of whatever it happens to be that year. Unless you own a home and pay mortgage interest, most of the time the rest of your deductions won't get you over that standard deduction hump. If the preparer is telling you to itemize and you are a renter, remember that they get paid more in preparing a 1040 with a bunch of schedules than they do with a 1040A or 1040EZ with few if any deductions. If you add all your itemized deductions without a mortgage interest payment and they equal just at what your standard deduction would be, save the money on the prep and go with a 1040A. This answer would change if you had children or were expecting EIC or additional refundable tax credits.
David Roberts, CFE, CQBPA, MBA, lives in Kissimmee, Florida with his four girls, three dogs, two snakes and one wife. He has been a member of the Association of Certified Fraud Examiners for five years and has been studying fraud for longer than that. He is the owner of Homesoon Accounting Services which specializes in Quickbooks Consultations and Fraud Prevention and Detection.
Article Source: http://EzineArticles.com/?expert=David_S_Roberts
วันจันทร์ที่ 15 ธันวาคม พ.ศ. 2551
Commercial Banks Facing Real Hard Time As World Economy Tumults
As the commercial banks are fighting for survival, the economic situation is getting worsened with every passing hour. As revealed by stock news India, the depletion of stock values, fund values, bankruptcy and disastrous closing prices have left everyone speechless. The world power, U.S.A. has been hit in the similar manner or even badly. Wall Street, the largest stock market, as stated by stock market news, money market news, share news India and various other finance news channels dailies, is undergoing a panicking stigma of commercial loss. Only a few famous commercial banks like Wachovia, Chinese bank, Citic have been considered to come to the rescue of the plenty of bankrupt investors and corporate houses, worldwide.
According to Share news India and stock exchange news, American Express, Citigroup, JP Morgan Chase, American icons and many others are undergoing a devastating economic loss, so much so that Apple as well has been hit badly by the disastrous crisis. Possibilities are that most of the commercial banks undergoing loss could merge with those in a fine situation or simply could head on for a bail out.
Stock exchange news stated that the investors, financers, stock brokers, and bankers have no clue as to what will follow. In India as well, the fund values has been depleting so far and it's tough to pontificate whether fund investing in India is worth taken a risk of. Loss of massive amounts till now has left everyone in a thrifty state and every following step has to be measured for one to escape huge losses and bankruptcy. India money market news, share news India and finance news India have depicted the situation of Indian stock market to be one such that could be tackled with ease. Investors and expert economists commented on this situation after having a look at the increased swap rates which are closely following the bond yields. Such easing and hopeful conditions have in fact raised hopes as well as curiosity implying towards an increase in the demand for the nearing debt auctions which will follow soon. These auctions will definitely help the otherwise drought stricken investors to have a fulfilling appetite.
However, currency news India and share news India have pointed towards a worsened situation worldwide where the currency meter has fluctuated to an extent that the fifteen nation currency Euro has fallen flat on face against dollar and yen. No doubt, the European Central Bank will have to cut down the interest rates to avoid any economic mishap.
The economic currency exchange rates had never been in such a troubled state in the last ten decades. The Indian currency exchange rates have depicted rupee as going down against dollar as predictably. The stock news India and share news India heads in the same direction by throwing enough light towards sensex dipping down towards the dusk each following day. Completely in sync with the economic slip downwards globally, Indian stocks have also tumbled down. As the bankers and investors keep switching on and off to the online currency converters, nothing but loosened hopes come handy. Not a right time for personal finance investing, it's the time to sit back and observe the drastic stock market trends and play safe as personal finance tools hardly help in such thrifty situations.
Sourav Sharma is freelance market analyst and is writing reviews articles on money market news, India business news, share market news and information on India finance News.
Article Source: http://EzineArticles.com/?expert=Sourav_Sharma
According to Share news India and stock exchange news, American Express, Citigroup, JP Morgan Chase, American icons and many others are undergoing a devastating economic loss, so much so that Apple as well has been hit badly by the disastrous crisis. Possibilities are that most of the commercial banks undergoing loss could merge with those in a fine situation or simply could head on for a bail out.
Stock exchange news stated that the investors, financers, stock brokers, and bankers have no clue as to what will follow. In India as well, the fund values has been depleting so far and it's tough to pontificate whether fund investing in India is worth taken a risk of. Loss of massive amounts till now has left everyone in a thrifty state and every following step has to be measured for one to escape huge losses and bankruptcy. India money market news, share news India and finance news India have depicted the situation of Indian stock market to be one such that could be tackled with ease. Investors and expert economists commented on this situation after having a look at the increased swap rates which are closely following the bond yields. Such easing and hopeful conditions have in fact raised hopes as well as curiosity implying towards an increase in the demand for the nearing debt auctions which will follow soon. These auctions will definitely help the otherwise drought stricken investors to have a fulfilling appetite.
However, currency news India and share news India have pointed towards a worsened situation worldwide where the currency meter has fluctuated to an extent that the fifteen nation currency Euro has fallen flat on face against dollar and yen. No doubt, the European Central Bank will have to cut down the interest rates to avoid any economic mishap.
The economic currency exchange rates had never been in such a troubled state in the last ten decades. The Indian currency exchange rates have depicted rupee as going down against dollar as predictably. The stock news India and share news India heads in the same direction by throwing enough light towards sensex dipping down towards the dusk each following day. Completely in sync with the economic slip downwards globally, Indian stocks have also tumbled down. As the bankers and investors keep switching on and off to the online currency converters, nothing but loosened hopes come handy. Not a right time for personal finance investing, it's the time to sit back and observe the drastic stock market trends and play safe as personal finance tools hardly help in such thrifty situations.
Sourav Sharma is freelance market analyst and is writing reviews articles on money market news, India business news, share market news and information on India finance News.
Article Source: http://EzineArticles.com/?expert=Sourav_Sharma
The Theory of Money and the Theory of Value
The most important point to emerge from Marx's theory of money is the idea that money is a form of value. The difficulty with this idea is that we are more familiar with money itself than with value in other forms. But value does appear in forms other than money. For example, the balance sheet of a capitalist firm estimates the value of goods in process and of fixed capital which has not yet been depreciated, as well as the value of inventories of finished commodities awaiting sale. Each of these aggregations of commodities has a value, usually expressed as the equivalent of a certain amount of money, but it is clear that neither goods in process nor fixed capital is money. Marx views the value of commodities in this sense as analytically prior to money; money can be explained according to Marx only on the basis of an understanding of the value of commodities.
Marx follows Smith in regarding value as the property of exchangeability of commodities. In a society where exchange is common, products come to have a dual character as use values and as values. They have two powers: first, to satisfy particular human needs and wants; and second, to exchange for other products. This second power can be thought of quantitatively, as an amount of exchangeability or command over other commodities. The classical economists viewed value as a real, though socially determined, entity, with its own laws of conservation and motion. Value in this sense bears the same relation to commodities as mass bears to physical objects. It is not surprising that in societies where exchange is widespread value takes on an independent form as money, as an expression of general exchangeability.
Value is a central social reality for people; they constantly think and talk about it directly or indirectly; they want some way to transfer it directly among themselves, separate from particular commodities.
This is what we mean by "money." It is the social expression of value separated from the concrete particularity of any use value. With this emergence of money as the social expression of value, money stands, in opposition to commodities, as the abstract always stands in opposition to the particular. We will see value in two forms: as particular commodities, and as money. It is crucial to recognize that this development is latent in the commodity form itself. Insofar as commodity relations are well developed, so that exchange of products is common and people are forced to consider the value of products separately from their use values, the money form of value will also be present. There is no reason to think of the commodity form emerging historically before the money form.
However it is seen, it is clear that we still can't do anything without this little thing called "money" and probably never will.
Interested in another subject? Try this link for more information!
Want to know about the author? Just click!
Article Source: http://EzineArticles.com/?expert=EnRico_Nestler
EnRico Nestler - EzineArticles Expert Author
Marx follows Smith in regarding value as the property of exchangeability of commodities. In a society where exchange is common, products come to have a dual character as use values and as values. They have two powers: first, to satisfy particular human needs and wants; and second, to exchange for other products. This second power can be thought of quantitatively, as an amount of exchangeability or command over other commodities. The classical economists viewed value as a real, though socially determined, entity, with its own laws of conservation and motion. Value in this sense bears the same relation to commodities as mass bears to physical objects. It is not surprising that in societies where exchange is widespread value takes on an independent form as money, as an expression of general exchangeability.
Value is a central social reality for people; they constantly think and talk about it directly or indirectly; they want some way to transfer it directly among themselves, separate from particular commodities.
This is what we mean by "money." It is the social expression of value separated from the concrete particularity of any use value. With this emergence of money as the social expression of value, money stands, in opposition to commodities, as the abstract always stands in opposition to the particular. We will see value in two forms: as particular commodities, and as money. It is crucial to recognize that this development is latent in the commodity form itself. Insofar as commodity relations are well developed, so that exchange of products is common and people are forced to consider the value of products separately from their use values, the money form of value will also be present. There is no reason to think of the commodity form emerging historically before the money form.
However it is seen, it is clear that we still can't do anything without this little thing called "money" and probably never will.
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Article Source: http://EzineArticles.com/?expert=EnRico_Nestler
EnRico Nestler - EzineArticles Expert Author
Cash Loans - Fastest Way to Grab Funds
Urgent cash requirement has cropped up? Need quick funds to tackle sudden expenses? Then in such a situation one external source i.e. cash loans can be easily trusted. You can easily acquire immediate funds to solve small financial problems.
Cash loans require no credit check! This means that bad credit holders can also easily qualify for these loans. Those with bad credit like CCJs, IVA, late payments, arrears, defaults and bankruptcy are acceptable.
As cash loans borrower can borrow an amount ranging from £100-£1500 for a term of 2-4 weeks. The repayment date coincides with your coming payday and is easier to meet. The loan amount can be utilized for meeting various day to day expenses like medical expenses, college fee, utility bills, paying car repair cost and electricity bills. They carry slightly higher rate of interest as they are short term in nature. If you shop around thoroughly then you can probably find a lower rate deal for yourself.
Cash loans have fast approval process they don't require any documentation, paperwork or collateral evaluation. No lengthy formalities make the process much faster and easier. Cash is quickly transferred within 24 hours of approval.
One can easily apply for cash loans through banks, other financial institutions and online. There is a stiff market competition among lenders that allows you to avail a lower rate deal for yourself. But will have to research well before applying. All you have to do is, just fill up a simple online form.
Cash loans can be easily entailed by anyone who fulfills the minimum eligibility criteria:-
• Must be 18 years of age
• Must have regular employment
• Must have an active bank account
They provide quick access to money as they provide borrowers quick and immediate financial aid. Anyone can easily apply for cash loans without wasting much time in complying with lengthy formalities.
Peter Taylor is a senior financial analyst at Fast Cash Loan Tenant with an acumen for finance. In recent years he has taken up to provide financial advice through his articles. His articles are widely read because of the lucid manner of writing. To find Cash loans, tenant loans that best suits your need visit http://www.fastcashloantenant.co.uk/
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
Cash loans require no credit check! This means that bad credit holders can also easily qualify for these loans. Those with bad credit like CCJs, IVA, late payments, arrears, defaults and bankruptcy are acceptable.
As cash loans borrower can borrow an amount ranging from £100-£1500 for a term of 2-4 weeks. The repayment date coincides with your coming payday and is easier to meet. The loan amount can be utilized for meeting various day to day expenses like medical expenses, college fee, utility bills, paying car repair cost and electricity bills. They carry slightly higher rate of interest as they are short term in nature. If you shop around thoroughly then you can probably find a lower rate deal for yourself.
Cash loans have fast approval process they don't require any documentation, paperwork or collateral evaluation. No lengthy formalities make the process much faster and easier. Cash is quickly transferred within 24 hours of approval.
One can easily apply for cash loans through banks, other financial institutions and online. There is a stiff market competition among lenders that allows you to avail a lower rate deal for yourself. But will have to research well before applying. All you have to do is, just fill up a simple online form.
Cash loans can be easily entailed by anyone who fulfills the minimum eligibility criteria:-
• Must be 18 years of age
• Must have regular employment
• Must have an active bank account
They provide quick access to money as they provide borrowers quick and immediate financial aid. Anyone can easily apply for cash loans without wasting much time in complying with lengthy formalities.
Peter Taylor is a senior financial analyst at Fast Cash Loan Tenant with an acumen for finance. In recent years he has taken up to provide financial advice through his articles. His articles are widely read because of the lucid manner of writing. To find Cash loans, tenant loans that best suits your need visit http://www.fastcashloantenant.co.uk/
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
วันพฤหัสบดีที่ 11 ธันวาคม พ.ศ. 2551
Personal Loans - Easy Financial Assistance For You
We all require adequate finance to satisfy our diverse needs, day to day expenses and other such needs can be easily fulfilled. But there are some needs that just cannot be avoided and require substantial funds too for their fulfillment. To cater such needs effectively you can easily apply for personal loans that offer great financial help to all.
Personal loans are available as secured and unsecured. Secured personal loans are secured against any of your valuable asset. You can offer anything like house, automobile and valuable documents as collateral. The amount offered ranges from £5000-£75000 for a term of 5-25 years. Secured loans offer substantial amount and have longer repayment term. They carry a lower rate of interest which can be easily afforded.
Unsecured personal loans don't require any security against the loan amount. These loans are free from collateral clause. A borrower can borrow anything ranging from £1000-£25000 for a term of 1-10 years depending on their requirements. You can borrow anything that is required and can be easily paid back. Unsecured personal loan have slightly higher rate of interest because of absence of collateral.
Personal loans can be used to meet your personal requirements which call for huge investments like:
• Home renovation
• Car purchase
• Wedding
• Financing education
• Vacation
Borrowers with bad credit status are eligible for personal loans. People facing poor credit like CCJs, IVA, late payments, defaults, bankruptcy, and arrears can also apply.
One can apply for personal loans from banks, other financial institutions and online. Among all, the internet is the fastest way of applying and getting loans. The online process is hassle free and very much convenient. You just need to fill up an online application form to apply.
Personal loans provide adequate finance to all its borrowers. You can use the loan amount without any restriction or obligation.
George Kane has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find personal loans, secured loans, debt consolidation loans visit http://www.loans-4-uk.co.uk/.
Article Source: http://EzineArticles.com/?expert=George_Kane
Personal loans are available as secured and unsecured. Secured personal loans are secured against any of your valuable asset. You can offer anything like house, automobile and valuable documents as collateral. The amount offered ranges from £5000-£75000 for a term of 5-25 years. Secured loans offer substantial amount and have longer repayment term. They carry a lower rate of interest which can be easily afforded.
Unsecured personal loans don't require any security against the loan amount. These loans are free from collateral clause. A borrower can borrow anything ranging from £1000-£25000 for a term of 1-10 years depending on their requirements. You can borrow anything that is required and can be easily paid back. Unsecured personal loan have slightly higher rate of interest because of absence of collateral.
Personal loans can be used to meet your personal requirements which call for huge investments like:
• Home renovation
• Car purchase
• Wedding
• Financing education
• Vacation
Borrowers with bad credit status are eligible for personal loans. People facing poor credit like CCJs, IVA, late payments, defaults, bankruptcy, and arrears can also apply.
One can apply for personal loans from banks, other financial institutions and online. Among all, the internet is the fastest way of applying and getting loans. The online process is hassle free and very much convenient. You just need to fill up an online application form to apply.
Personal loans provide adequate finance to all its borrowers. You can use the loan amount without any restriction or obligation.
George Kane has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find personal loans, secured loans, debt consolidation loans visit http://www.loans-4-uk.co.uk/.
Article Source: http://EzineArticles.com/?expert=George_Kane
Cash Loans - Fastest Way to Grab Funds
Urgent cash requirement has cropped up? Need quick funds to tackle sudden expenses? Then in such a situation one external source i.e. cash loans can be easily trusted. You can easily acquire immediate funds to solve small financial problems.
Cash loans require no credit check! This means that bad credit holders can also easily qualify for these loans. Those with bad credit like CCJs, IVA, late payments, arrears, defaults and bankruptcy are acceptable.
As cash loans borrower can borrow an amount ranging from £100-£1500 for a term of 2-4 weeks. The repayment date coincides with your coming payday and is easier to meet. The loan amount can be utilized for meeting various day to day expenses like medical expenses, college fee, utility bills, paying car repair cost and electricity bills. They carry slightly higher rate of interest as they are short term in nature. If you shop around thoroughly then you can probably find a lower rate deal for yourself.
Cash loans have fast approval process they don't require any documentation, paperwork or collateral evaluation. No lengthy formalities make the process much faster and easier. Cash is quickly transferred within 24 hours of approval.
One can easily apply for cash loans through banks, other financial institutions and online. There is a stiff market competition among lenders that allows you to avail a lower rate deal for yourself. But will have to research well before applying. All you have to do is, just fill up a simple online form.
Cash loans can be easily entailed by anyone who fulfills the minimum eligibility criteria:-
• Must be 18 years of age
• Must have regular employment
• Must have an active bank account
They provide quick access to money as they provide borrowers quick and immediate financial aid. Anyone can easily apply for cash loans without wasting much time in complying with lengthy formalities.
Peter Taylor is a senior financial analyst at Fast Cash Loan Tenant with an acumen for finance. In recent years he has taken up to provide financial advice through his articles. His articles are widely read because of the lucid manner of writing. To find Cash loans, tenant loans that best suits your need visit http://www.fastcashloantenant.co.uk/
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
Cash loans require no credit check! This means that bad credit holders can also easily qualify for these loans. Those with bad credit like CCJs, IVA, late payments, arrears, defaults and bankruptcy are acceptable.
As cash loans borrower can borrow an amount ranging from £100-£1500 for a term of 2-4 weeks. The repayment date coincides with your coming payday and is easier to meet. The loan amount can be utilized for meeting various day to day expenses like medical expenses, college fee, utility bills, paying car repair cost and electricity bills. They carry slightly higher rate of interest as they are short term in nature. If you shop around thoroughly then you can probably find a lower rate deal for yourself.
Cash loans have fast approval process they don't require any documentation, paperwork or collateral evaluation. No lengthy formalities make the process much faster and easier. Cash is quickly transferred within 24 hours of approval.
One can easily apply for cash loans through banks, other financial institutions and online. There is a stiff market competition among lenders that allows you to avail a lower rate deal for yourself. But will have to research well before applying. All you have to do is, just fill up a simple online form.
Cash loans can be easily entailed by anyone who fulfills the minimum eligibility criteria:-
• Must be 18 years of age
• Must have regular employment
• Must have an active bank account
They provide quick access to money as they provide borrowers quick and immediate financial aid. Anyone can easily apply for cash loans without wasting much time in complying with lengthy formalities.
Peter Taylor is a senior financial analyst at Fast Cash Loan Tenant with an acumen for finance. In recent years he has taken up to provide financial advice through his articles. His articles are widely read because of the lucid manner of writing. To find Cash loans, tenant loans that best suits your need visit http://www.fastcashloantenant.co.uk/
Article Source: http://EzineArticles.com/?expert=Peter_Taylor
6 Financial Advice Rules Any Professional Should Live By
Are you thinking about a career in financial services? While finance can be both very lucrative and rewarding, people should use caution. It takes both knowledge and discipline. The following are some basic rules any professional should give to there clients.
Divide every dollar wisely
Money is dived into 4 important "buckets". Make sure you're allocating correctly. These "buckets" are:
• Essential expenses
• Short-term savings
• Retirement savings
• Emergency expenses
Stay out of debt
In today's society it's almost impossible to completely stay out of debt, however try to keep it under control. Only use credit cards if you expect to pay them off every month. Bottom line - don't spend money you don't have.
Property
Property can be a very good investment; however it can also be dangerous. Make sure you make wise decisions when purchasing a home or office. Do plenty of research of the area, as well as the mortgage you get.
Get the whole family involved
It's never too early to start learning about money. Teach your children how to save and the value of planning for the future. The lessons learned will never be forgotten.
The importance of Insurance
While many people think it's a waist of money, insurance can be a life savor. By shopping around, you'll be able to save on premiums.
Family matters
Avoid lending or borrowing money to friends or family. While it may seem like a good idea, it may lead to undue strain on your relationships. It's best to go through financial institutions for these types of matters.
Don't be unprepared when launching your career as a financial advisor. Get all the facts by reading: Picking A Financial Career as soon as possible. This is an excellent article that will give you all the facts you need before launching a financial career.
http://www.topfinancecareersonline.com is dedicated to helping people find the successful career they deserve.
Article Source: http://EzineArticles.com/?expert=Tim_Bock
Divide every dollar wisely
Money is dived into 4 important "buckets". Make sure you're allocating correctly. These "buckets" are:
• Essential expenses
• Short-term savings
• Retirement savings
• Emergency expenses
Stay out of debt
In today's society it's almost impossible to completely stay out of debt, however try to keep it under control. Only use credit cards if you expect to pay them off every month. Bottom line - don't spend money you don't have.
Property
Property can be a very good investment; however it can also be dangerous. Make sure you make wise decisions when purchasing a home or office. Do plenty of research of the area, as well as the mortgage you get.
Get the whole family involved
It's never too early to start learning about money. Teach your children how to save and the value of planning for the future. The lessons learned will never be forgotten.
The importance of Insurance
While many people think it's a waist of money, insurance can be a life savor. By shopping around, you'll be able to save on premiums.
Family matters
Avoid lending or borrowing money to friends or family. While it may seem like a good idea, it may lead to undue strain on your relationships. It's best to go through financial institutions for these types of matters.
Don't be unprepared when launching your career as a financial advisor. Get all the facts by reading: Picking A Financial Career as soon as possible. This is an excellent article that will give you all the facts you need before launching a financial career.
http://www.topfinancecareersonline.com is dedicated to helping people find the successful career they deserve.
Article Source: http://EzineArticles.com/?expert=Tim_Bock
วันพุธที่ 3 ธันวาคม พ.ศ. 2551
Taking the World by Storm - The Best International Online Banks
Banking is one of the businesses that is essential to the continuity of everyday life as we know it. Banks are important fixtures in our nation today, as they help keep economies up and to keep people's money secure. The importance of banking is such that people have taken the next logical step in the evolution of modern day banking-the online bank. And not only has America caught onto it, but international online banks have taken the world by storm as well.
Online banks are known not only for their efficient and reliable service, hence their popularity. These are two of the amazing online banks that have made it big in Europe, Asia and the rest of the world:
RaboBank: Europe's largest Internet Bank, the RaboBank International Direct Banking comes straight from the Netherlands and has expanded to conquer much of the world. You can make transactions with the RaboBank online, by mail or over the phone. RaboBank charges no fees, sets no minimums and offers the best rates and deals in any country, making it very popular indeed. Their website should provide the best information on their services.
Smile: Although it sounds more like a search engine or an online game, Smile is actually one of the biggest online banks in the world. Based in the United Kingdom, it is the country's first full online bank in 1999, Smile offers full-service savings accounts, current accounts, credit cards, investments and other financial services. It is also the first British Internet bank to be given an ISO27001 Information Security certification for ethics and security. Smile's language is as simple as its name, so customers can understand the language of banking much better.
These are just two of the many international online banks that have taken the world by storm. If you want to know more about online banking and international banks, just visit: http://onlinebankpro.com/category/article-pages/other-international-banks/
Article Source: http://EzineArticles.com/?expert=Manny_Bright
Online banks are known not only for their efficient and reliable service, hence their popularity. These are two of the amazing online banks that have made it big in Europe, Asia and the rest of the world:
RaboBank: Europe's largest Internet Bank, the RaboBank International Direct Banking comes straight from the Netherlands and has expanded to conquer much of the world. You can make transactions with the RaboBank online, by mail or over the phone. RaboBank charges no fees, sets no minimums and offers the best rates and deals in any country, making it very popular indeed. Their website should provide the best information on their services.
Smile: Although it sounds more like a search engine or an online game, Smile is actually one of the biggest online banks in the world. Based in the United Kingdom, it is the country's first full online bank in 1999, Smile offers full-service savings accounts, current accounts, credit cards, investments and other financial services. It is also the first British Internet bank to be given an ISO27001 Information Security certification for ethics and security. Smile's language is as simple as its name, so customers can understand the language of banking much better.
These are just two of the many international online banks that have taken the world by storm. If you want to know more about online banking and international banks, just visit: http://onlinebankpro.com/category/article-pages/other-international-banks/
Article Source: http://EzineArticles.com/?expert=Manny_Bright
วันอังคารที่ 2 ธันวาคม พ.ศ. 2551
When is a Tax Credit Really a Loan?
As a part of the Housing Assistance Tax Act Of 2008 (H.R. 3221) a refundable tax credit is available to first-time home buys up to $7,500. Generally speaking, the credit is the lesser of $7,500 or 10% of the home's purchase price; he home must be a principal residence and purchased after April 8, 2008 and before July 1, 2009; and the credit also phases out when your adjusted gross income (AGI) is between $75,000 to $95,000 for singles and $150,000 to $170,000 for married filing joint. The credit is refundable, meaning, even if you have zero taxable income and zero tax you would be eligible to receive the entire credit as a tax refund.
However, there are a few items to consider before rushing out too purchase a home using this tax "credit". The title of the First-Time Home Buyer credit should be "The advance loan at 0% by the US Government". This tax "credit" has to be completely repaid by the taxpayer over 15 years. In the first year the taxpayer may receive a benefit of $7,500, but over the past 15 years the taxpayer will have to repay the "credit" $500 a year. A taxpayer claiming this credit might be extremely happy during the first year, but may regret the decision over the next 15 years. The benefit can be viewed as borrowing $7,500 over 15 years with no interest. For example, using an annual compounding rate of 6% the interest savings is $4,083.
Another consideration by the taxpayer is should they purchase a house? In a challenging economy is the best personal financial decision for the taxpayer to purchase an asset which may decline in value (or may not increase in value), can the taxpayer afford the extra costs in owning a home (utilities, repairs, maintenance, etc.) and\or increase their debt levels? Of course, there are other benefits from owning your personal residence such as a safe place to raise a family, being more connected to your local community and other potential tax benefits related owning a home such as the potentially having ability to itemize your tax deductions.
The First-Time Home Buyer credit is an example of buyer be aware! A home purchaser should seek counsel with there tax advisor and financial planner before determining their purchase decision. Also, the home purchasers should be aware of the profit-motives of their advisor (i.e. how does the advisor get compensation and does this interfere with the advisor acting in their best interest).
Mark Wyssbrod, Pro@ctive CPA, has been helping small businesses achieve their goals since 1999. His proactive philosophy stems from the fact that traditional tax preparers are usually simple historians who react to their client's prior and current positions. Such a reactive stance means trying to fix mistakes after those mistakes are already made. Mark would rather prevent any mistakes in the first place. You can reach Mark at (770) 664-8583.
Internal Revenue Code, H.R. 3221
Article Source: http://EzineArticles.com/?expert=Mark_Wyssbrod
However, there are a few items to consider before rushing out too purchase a home using this tax "credit". The title of the First-Time Home Buyer credit should be "The advance loan at 0% by the US Government". This tax "credit" has to be completely repaid by the taxpayer over 15 years. In the first year the taxpayer may receive a benefit of $7,500, but over the past 15 years the taxpayer will have to repay the "credit" $500 a year. A taxpayer claiming this credit might be extremely happy during the first year, but may regret the decision over the next 15 years. The benefit can be viewed as borrowing $7,500 over 15 years with no interest. For example, using an annual compounding rate of 6% the interest savings is $4,083.
Another consideration by the taxpayer is should they purchase a house? In a challenging economy is the best personal financial decision for the taxpayer to purchase an asset which may decline in value (or may not increase in value), can the taxpayer afford the extra costs in owning a home (utilities, repairs, maintenance, etc.) and\or increase their debt levels? Of course, there are other benefits from owning your personal residence such as a safe place to raise a family, being more connected to your local community and other potential tax benefits related owning a home such as the potentially having ability to itemize your tax deductions.
The First-Time Home Buyer credit is an example of buyer be aware! A home purchaser should seek counsel with there tax advisor and financial planner before determining their purchase decision. Also, the home purchasers should be aware of the profit-motives of their advisor (i.e. how does the advisor get compensation and does this interfere with the advisor acting in their best interest).
Mark Wyssbrod, Pro@ctive CPA, has been helping small businesses achieve their goals since 1999. His proactive philosophy stems from the fact that traditional tax preparers are usually simple historians who react to their client's prior and current positions. Such a reactive stance means trying to fix mistakes after those mistakes are already made. Mark would rather prevent any mistakes in the first place. You can reach Mark at (770) 664-8583.
Internal Revenue Code, H.R. 3221
Article Source: http://EzineArticles.com/?expert=Mark_Wyssbrod
Credit Repair - Time Your Home Loans and Ride the Interest Rate Cycle
A few points on a credit score can mean the difference between a lender offering you a prime rate reserved for the best credit risks and the worse interest rate offered to less than prime customers, that is subprime loan.
Small Increases In Loan Interest Rates Could Make Great Impact
The first thought is that a few percentage points do not look hefty at all, but these few percentage points could create huge impact on your financial picture. This is especially true for large loan quantum such as home loans or car loans. Take for instance a home loan. A three to four percentage point difference would cause a incremental of USD1000 or more per month conservatively speaking. It is hence not difficult to visualize the eventual impact on your personal financial plan. Let us draw the example that you have taken a 20 year long term fixed rate loan. You could be losing out on USD1000 x 12 x 20 or USD240000 over the term of the loan for having bad credit rating. Or conversely you might be saving USD240000 for simply having good credit rating. The choice of course is yours. This is not even calculating the annualized compounded effect of interest savings rolled over the 20 years.
Fixed Rate Loan or Adjustable Rate Loans
Fixed rates as the name implies, means that you lock in the rate at inception of the loan and pay the same rate throughout the term of the loan. The above example is simple to calculate if you have a fixed rate long term loan. The rate is not affect by fluctuating market interest rates. Hence the payments are protected from market fluctuations. On the other hand, the payer would not be able to enjoy the lower rates when market forces drive down interest rates either. Conversely, the Adjustable Rate loan is a good way to take advantage of low interest rates and is chosen by homeowners as a way to qualify for a bigger loan than they may otherwise qualify for. Still, the adjustable rate loan is not without significant risk. As market rates change, so will your monthly payment. In some cases, this can make a significant difference in your payments. Hence should you have an adjustable rate loan you need to time the cycle very carefully to ensure that you benefit best from low interest rate scenarios and yet be able to redeem or refinance your loan package to lock in a fixed rate loan with more favorable interest rates before the interest rates start to hike. It is critical to boost your credit score by every percentage point you can and to fight for the very lowest interest rate loans you can. After all, if you have larger payments each month due to a higher interest rate than you deserve, it will be harder for you to repay your bills. Also, you will qualify for fewer loans if you have higher-than-needed interest rates, as you will be able to afford fewer of the larger monthly payments.
Joey Lee is a CFP and MBA with 17 years of banking, financial, business & marketing experience and a Platinum Ezine Author. Learn authentic Credit Repair skills and comprehensive information on Credit Repair Tips, credit reports, credit scores at CreditRepairSkills.org
Article Source: http://EzineArticles.com/?expert=Joey_Lee
Small Increases In Loan Interest Rates Could Make Great Impact
The first thought is that a few percentage points do not look hefty at all, but these few percentage points could create huge impact on your financial picture. This is especially true for large loan quantum such as home loans or car loans. Take for instance a home loan. A three to four percentage point difference would cause a incremental of USD1000 or more per month conservatively speaking. It is hence not difficult to visualize the eventual impact on your personal financial plan. Let us draw the example that you have taken a 20 year long term fixed rate loan. You could be losing out on USD1000 x 12 x 20 or USD240000 over the term of the loan for having bad credit rating. Or conversely you might be saving USD240000 for simply having good credit rating. The choice of course is yours. This is not even calculating the annualized compounded effect of interest savings rolled over the 20 years.
Fixed Rate Loan or Adjustable Rate Loans
Fixed rates as the name implies, means that you lock in the rate at inception of the loan and pay the same rate throughout the term of the loan. The above example is simple to calculate if you have a fixed rate long term loan. The rate is not affect by fluctuating market interest rates. Hence the payments are protected from market fluctuations. On the other hand, the payer would not be able to enjoy the lower rates when market forces drive down interest rates either. Conversely, the Adjustable Rate loan is a good way to take advantage of low interest rates and is chosen by homeowners as a way to qualify for a bigger loan than they may otherwise qualify for. Still, the adjustable rate loan is not without significant risk. As market rates change, so will your monthly payment. In some cases, this can make a significant difference in your payments. Hence should you have an adjustable rate loan you need to time the cycle very carefully to ensure that you benefit best from low interest rate scenarios and yet be able to redeem or refinance your loan package to lock in a fixed rate loan with more favorable interest rates before the interest rates start to hike. It is critical to boost your credit score by every percentage point you can and to fight for the very lowest interest rate loans you can. After all, if you have larger payments each month due to a higher interest rate than you deserve, it will be harder for you to repay your bills. Also, you will qualify for fewer loans if you have higher-than-needed interest rates, as you will be able to afford fewer of the larger monthly payments.
Joey Lee is a CFP and MBA with 17 years of banking, financial, business & marketing experience and a Platinum Ezine Author. Learn authentic Credit Repair skills and comprehensive information on Credit Repair Tips, credit reports, credit scores at CreditRepairSkills.org
Article Source: http://EzineArticles.com/?expert=Joey_Lee
Consumer Debt and Credit Counseling - How it Works?
Consumer debt and credit counseling are two integral entities of financial world and as you decide to go with a certain debt, whether it is an unsecured or secured, on your car or home or even if it is on a credit card, credit counseling helps you out all the time. In this article I wrote some of those key stages and credit counseling performances which help you identify and calculate your repayment capability and what type of settlement to choose in a negotiation with your creditor.
There are particular stages where a debt and counseling wrestle with each other to calculate the odds of payments, the loan flexibility for payment, duration it takes, budgeting, debt management and as well as the training and education for the entire process of debt to the full payment of the debt amount. But if we talk about a credit counseling which is also known as debt counseling we will see that it is so effective to manage even a bankruptcy. Indeed a situation like bankruptcy can only affect as a negative to your credit score but with a help of on time consulting you can manage it and save your reputation.
Talking about the stages the first is when you are deciding whether to go with a certain consumer debt and credit counseling to help you out on that particular debt to evaluate and confirm results for the guarantee that this loan is safe to handle and will not cause you bankruptcy in the end. Consumer debt and credit counseling for that debt is not very difficult to handle as in a next stage of your borrowing counseling also helps you manage the debt in a way that you can establish a settlement and bargain for a settlement with your creditor, if you want to do it all your own it is good but you can also hire a professional to do this job.
Recommended site to visit: http://www.DebtReliefOffer.com - Get out of Debt Today!
You can reduce your total debt amount by 40% - 60% during Debt Relief process!
See how much you can save with Debt Relief programs - use FREE Online Debt Relief Calculator - Compare, get Free NO Obligation Consultation and begin a new Debt Free life!
Jerry Cole
Article Source: http://EzineArticles.com/?expert=Jerry_Cole
There are particular stages where a debt and counseling wrestle with each other to calculate the odds of payments, the loan flexibility for payment, duration it takes, budgeting, debt management and as well as the training and education for the entire process of debt to the full payment of the debt amount. But if we talk about a credit counseling which is also known as debt counseling we will see that it is so effective to manage even a bankruptcy. Indeed a situation like bankruptcy can only affect as a negative to your credit score but with a help of on time consulting you can manage it and save your reputation.
Talking about the stages the first is when you are deciding whether to go with a certain consumer debt and credit counseling to help you out on that particular debt to evaluate and confirm results for the guarantee that this loan is safe to handle and will not cause you bankruptcy in the end. Consumer debt and credit counseling for that debt is not very difficult to handle as in a next stage of your borrowing counseling also helps you manage the debt in a way that you can establish a settlement and bargain for a settlement with your creditor, if you want to do it all your own it is good but you can also hire a professional to do this job.
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Jerry Cole
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