Monday, November 28, 2011

Sound Advice for Settling Debt Using a Debt Settlement Attorney

Don’t get trapped into declaring bankruptcy until you know your options
Being it debt is no fun. You feel trapped as if there is no way out and you start doing dangerous things like transferring balances between high interest credit cards in order to pay for food and housing. Or worse—you decide that declaring bankruptcy is your only option. However, declaring bankruptcy will lead to lengthy damage to your credit. Sure it will get you out of debt quick, but can you live with the negative, long-term repercussions on your credit?
Before declaring bankruptcy, speak with to a qualified debt settlement attorney about settling your debt.

How does debt settlement work?

During the debt settlement process your debt settlement attorney will negotiate with your creditors on your behalf. He or she will offer to settle your debts at a reduced amount—typically 25-percent to 50-percent less than your outstanding debt.
Creditors are on-board with debt settlement because they really have only two choices:

1. They can collect whatever you can give them.

2. Or they risk getting nothing at all (should you declare bankruptcy)
As you can understand, most creditors are more than happy to accept a partial repayment on your loans and credit cards in exchange for relieving you of debt—especially if the only other option leaves them completely empty handed.

How do you qualify for debt settlement?

First, you must speak to a Debt Settlement Attorney who can examine your finances. If you qualify, your lawyer will offer you enrollment in a professional debt settlement program, which follows these basic steps:

1. Signing over power of attorney: This is done so that your attorney is able to negotiate your debt settlement for you.

2. Accrue settlement fund: In this step you will accumulate as much money as you can towards settling your debt.

3. Your attorney negotiates with the lender: There will be some back and forth negotiation between your lawyer and creditors until a reduced settlement amount is reached.

4. Debt is paid: Using the funds accumulated in debt settlement fund.

5. If you have multiple creditors: Your lawyer approach another creditor with a debt settlement offer, and you will accrue another settlement fund to pay off each lender.

The pros of using a debt settlement lawyer-

1. Knowledge and respect from creditors: Experienced debt negotiators know the law. For instance, they are aware of the Fair Debt Collection Practices Act, a federal law that governs how, when and where a debt collector can contact you—e.g., at work, any hour of the day or night at home—and will make sure you are not hassled by credit collectors.

2. Time and experience is on their side: A debt settlement lawyer has the added benefit of time and experience. Ask yourself if you would even know how to begin the debt negotiation process with a creditor? Probably not, especially if you work full time or are in fear of having your wages garnished.

3. You will learn valuable budgeting skills: One of the main perks of going through the debt settlement process is learning budgeting and money management skills. Many debt settlement programs will offer this, others will not, so be sure you enroll in a program that teaches these skills.

The cons of using a debt settlement lawyer-

1. Hidden fees: Many debt settlement programs have hidden fees, if this is the case with your current firm don’t sign anything. Instead, seek out another lawyer to represent you.

2. Negative tax consequences: Ask if you qualify for tax exemptions—otherwise you may be taxed on the amount you save during your debt settlement process.

3. Awareness of the conditions and terms involved: Many debt negotiation lawyers aren’t as upfront as they should be with the terms and conditions of the debt settlement program. Ask how long will the process take, how long until your debt is paid in full? And don’t sign anything until your questions are answered.

Tuesday, November 22, 2011

Financial Aid Planning

Thеre arе a grоup оf new ѕtudіeѕ whіch hіghlіght thаt althоugh а cоllеgе еduсatiоn is highlу deѕіrаblе іt is beсoming inсrеaѕingly diffіcult fоr a studеnt to асhіеvе thiѕ dream. In a reсеnt Pеw Rеsеarсh Cеnter study оf рerсeptіоnѕ аbоut a collеgе educаtiоn, 94% of раrеntѕ іndiсаtеd that thеy wаnted theіr сhildren tо go to соllеge whіlе lеѕѕ thаn hаlf оf thе students will еnrоll іn а four-уеar degrее progrаm. Thе ѕіnglе bіggеst оbstасlе сіtеd by the studеnts waѕ а lасk of mоneу tо pаy fоr their еduсation. Amоng minоrіtу ѕtudеntѕ closе to 70% оf thoѕe studеntѕ who chоѕе nоt to gо to cоllеgе сіted thе lack of іnfоrmatіon about finаncіal аid аѕ the bіggеst obѕtacle tо соntinuіng thеіr еducatіоn. There іѕ а bіg gаp іn wаntіng tо go to соllegе and ultіmatеlу bеіng ablе to рау for іt.

The other іnterеstіng раrt of thе Pеw ѕtudу toоk а lооk at thе рrоblem frоm thе vіеwроіnt оf cоllеgе рreѕіdents. Thrеe-quаrters of аll cоllеgе рrеѕіdentѕ pоlled іndіcated that сollege wаs a gооd value fоr thе mоnеy spеnt and 42 percеnt bеlievе thаt соllеge іѕ аffоrdаble fоr mоѕt рeорle. Thіѕ cоmраrеs wіth 60 perсеnt оf ѕtudеnts аnd рarеnts whо were роllеd іndіcatіng that соllege іѕ nо longer а good vаlue alоng wіth the 75 pеrcent whо belіеve thаt соllеge іs nоt аffordablе fоr thе аvеrаgе fаmilу.

One grоup оf reѕpondеntѕ, thе рarentѕ and studеntѕ, ѕee сollеge сoѕtѕ rіѕіng аnd ѕtatе fundіng drоpрing. The оthеr grоup оf rеѕроndеntѕ, thе сollеge рrеѕіdents, hаve ѕeеn unprеcеdеnted іncrеaѕеѕ in student аid over thе раst ѕеvеrаl yearѕ. Muсh оf thіѕ nеw mоney іѕ bеing fundеd dіrectly bу thе cоllеgеѕ. So who iѕ right?

It іѕ a matter оf whеre yоu lіvе аnd what tyрes оf ѕсhооls to whісh уou aррlу. In mаnу ѕtateѕ with funding cutѕ thе nеt соst оf аttеnding рublіc schоolѕ hаѕ gonе up dramаtісаlly оvеr the раѕt few уеars. Hоwеver, thе nеt соѕt оf attеndіng рrіvаte schоolѕ hаѕ aсtuаllу dесlinеd оvеr thе sаmе реrіоd of tіme. Essentiаlly fіnancіаl aіd has іncrеаsеd fаster than thе сost оf аttendіng аt рrіvаte ѕchооls. And whilе thе fedеral gоvеrnmеnt hаs роurеd mоnеу іntо finаnсіаl аіd іn thе form of grаntѕ аnd ѕubѕіdіzеd lоаns the number of students wаntіng to аttеnd collegе hаs gоnе up drаmаtiсallу аѕ jоb оptiоns have bееn lіmited during the rесеssіon.

Thе bіggеѕt differеnсе bеtween the cоnѕumer аnd thе ѕuppliеr оf еduсаtіоn іs sіmрlу іnfоrmatіоn. Fаmіliеs do nоt hеаr аbout соllеgе fundіng frоm thе cоllеge'ѕ реrѕpеctіve, and сollegeѕ аssumе thаt fаmіlіеѕ knоw еverуthіng about thе fіnаnсial аid prоceѕs. Fоr moѕt fаmiliеѕ devеlopіng a finаnсіal aіd plan cоuld help them bеcоme bеttеr conѕumеrѕ of eduсatiоn. In mоѕt саѕеѕ reducіng the соst of аn еduсatіоn therеbу mаkіng іt mоre аffоrdаble. And соllegеs соuld makе the whоle fіnаnсіal aid prосeѕѕ more trаnѕраrent аnd lеѕѕ dіffісult tо nаvіgate. Thеу wоuld bе сreаting a grеatеr реrcеption of thе rеаl valuе of an еduсatіоn. Unfortunаtеlу fоr the fаmilіeѕ, аѕ thе conѕumer, the onuѕ іѕ оn them tо рісk ѕсhооlѕ wiѕеly, bаѕеd on the real соstѕ of аttеndіng. There іѕ a wаy tо plаn fіnаnсіally fоr a collеge еduсatіоn. Lеt thе buуer bеwаre!

About the Author : Rohitesh Naik, a Freelance writer and a Internet Marketer who presently writes about the Upcoming Verizon Phones. It includes all the the news and updates about New Verizon Phones.

Save Money on Gas by Driving Safe

This guest blog post was written by Freedom Rims, a Responsible Military Lender since 1983. Freedom Rims offers military financing for rim and tire packages throughout the USA.

As gas prices rise, we start to look to other alternatives to save money on gas. One of the easiest ways to save money on gas is by driving safe. There are certain driving habits and acts that can actually cause you to use more gas while you are driving. However, these tips and suggestions can help you to spend less money on gasoline and reduce your fuel consumption overall.
Tips to Follow:
  • Speed Limit
Following the speed limit can benefit your automobile and your wallet because rapid acceleration and speeding wastes gas. The majority of car accidents that happen occur because of speeding, as well. The more force you put down on the gas, the harder your car must work, which in turn uses more gas. Gas mileage is known for decreasing rapidly once it reaches above 60 mph. Slow down and your fuel mileage will increase.

  • Cruise Control
Using cruise control when you are on an interstate or long road can be beneficial. It maintains a steady speed, meaning you do not have to physically gas the car. Be aware that this is ideal for flat highways and roads. When you reach roads that have hills and many turns, the cruise control should be turned off so that the engine isn’t constantly trying to speed up and slow down.

  • Don’t Idle
When you are stopped and parked somewhere, turn your car off. If you plan on sitting somewhere for a few minutes, sitting in idle will just burn gas, costing you more money. Turn the car off and restart it once you are ready to go. This will save you a great deal on gas. Many communities and cities have started enforcing no idling areas to help prevent burning gas.

  • Extra Weight
The more you have in a car, the more gas it takes to move it. This means if you are carrying around extra things in your trunk or car, it may be a good idea to take them out. Unnecessary items in your car may be one of the many things costing you extra money.

  • Brake
Efficiency saves the most money. When you slam your breaks over and over again you are being inefficient. You can save gas by gradually rolling up to stop lights and intersections. Changing this driving habit can be very beneficial to your gas consumption.

  • Alternatives
Consider using public transportation or carpooling systems around your area. In economically challenging times, this can help the environment, as well.
Driving safely can cut down transportation and gas costs. As gas continues to rise, it will be more important to try and save money where we can. Not only do these tips and suggestions help you to save on gas and money, they help keep you and other driver’s safe while on the road.

Monday, November 7, 2011

Small Changes For Big Savings

Many families dream of attaining financial freedom, but are intimidated by having to make drastic changes to their lifestyle. Simply trimming the expenses on day to day needs and putting the excess money aside to pay down or eliminate debts can be a tremendous help in achieving your financial goals. Although there are many ways to save, here are 5 common expenses and the simple steps to take that add up to major savings:

1.Use coupons to reduce your grocery bill. Coupons can be found everywhere from your local Sunday paper to printable coupons on the internet. While using paper coupons will drop your grocery expenses considerably, some consumers become overwhelmed in trying to organize and keep track of them all. One alternative is using e-coupons through sites like Load the e-coupons onto your store's loyalty card. Scan the card at checkout and, instead of having the e-coupons take money off your transaction, the money saved goes into your savingstar account. Once you have saved $5, you have the option to request a payout via bank deposit, PayPal, Amazon gift card or as a donation to American Forests. The money accumulated by using e-coupons is out of sight, out of mind and able to make its way directly into your savings account.

2.Save on your car insurance by bundling an auto policy with the policy for your home. Many major insurance companies like State Farm and Progressive offer sizable discounts for combining policies. The amount of potential savings varies depending on your driving habits and the value of your home.

3.Brown bag it. If you work outside the home, consider packing a lunch 1 or 2 times a week. With an average lunch costing upwards of $7, packing a lunch from home just 1 day a week will save you over $350 in the course of a year. Practice fiscal responsibility by using the extra cash to pay down credit cards or start and emergency fund to cover unexpected expenses that would otherwise end up on the charge card.

4.Fuel savings may seem few and far between as the price of gas is increasingly on the rise. Carpooling is a savvy, and eco-friendly, way to lessen the burden of pricey gasoline while still being able to get where you need to go.

5.If you find yourself shopping online, visit a cash back site first. When you make a purchase after being routed from a cash back site, a percentage of the purchase amount is deposited into your cash back account. Many cash back sites like and also provide coupon codes to use upon checkout. This is a great way to spend less on everything from diapers to printer ink while saving money simultaneously.

Financial freedom is as straightforward as making simple behavioral changes that add up to major savings successes. What is your game plan for saving on day to day expenses?

Wednesday, October 26, 2011

5 Things You Should Know when Transferring Money Overseas

We all know that money makes the world go round, but what happens when you want to make your money go round the world? Typically it travels with high fees, poor exchange rates and a strong headwind. However, with these five tips you can avoid all of the expenses and delays which are normally associated with transferring money overseas.

1 – Use a Broker

Most of us can use our common sense and knowledge to figure out new tasks for ourselves, and this is how we learn. However, when it comes to dealing with money, this is not the time for trial and error, especially where international transfers – language barriers, time zones and delays – are concerned.

Therefore, if you are transferring money overseas using a currency broker can make the experience easier and more profitable. When you use a currency broker it is important to know that you can benefit from:

* A saving of between 0.5% and 4% on your transfers.
* Fast international payments, same day transfers in most cases.
* No commissions.
* No bank receiving charges.
* Personal service and your own dedicated broker.
* Access to products and services not offered by the banks.

2 – Types of Transfers

When you are transferring money overseas you should also know about the different types of transfers available through a broker:

* Spot contracts. If you have access to the funds in your account you can organise for a spot transaction which simply exchanges one currency for another at the current market price. The settlement typically happens in two working days and a broker can secure you the best rate.
* Forward contracts. Allows you to fix an exchange rate now, for a transfer date in the future. You can choose a date up to two years in advance and even if the exchange rate changes, you can make your transfer at the fixed rate you’ve already chosen.
* Currency options. Similar to a forward contract, you will be exchanging one currency for another at a date in the future, however with a currency option you can still take advantage of rate moves in your favour. Where a forward contract protects you if the rate moves against you, you are also stuck with your fixed rate if the current rate moves in your favour. Therefore, with a currency option you’re still protected from negative movements, but can also take advantage of positive moves.
* Regular payments. If you are going to be transferring a set amount of funds overseas on a regular basis – if you are paying a mortgage on an international property for example – then you can set up an automatic transfer for the exchange to be made on a set day or date.

3 – Give Yourself Time

Transferring money overseas isn’t like transferring it between accounts at home. There can be unexpected changes and delays in your transfer, so make sure you give yourself enough time to make the transfer effectively. For example, if you have left your transfer to the last minute and need to make the exchange quickly, you are at the mercy of exchange rates, and you may find you don’t have the amount you need to transfer because of the current rate. However, if you’ve got a period of time before the transfer needs to be made, you can wait out any negative exchange rate fluctuations.

4 – Fees and Charges To Be Aware Of

If you are transferring money overseas via a bank, you will usually have to have an account with that bank first before they will complete the transfer. A large portion of bank profits come from the fees and charges paid by their customers and international transfers are some of the most high fee transactions offered.

If you are travelling or moving overseas and want to transfer funds to an account in your destination country you may be tempted to try and avoid the fees of making an overseas transfer through your bank, by visiting a branch of your bank when you arrive. However, even though the branch of your bank operates in another country, it is separate from your bank at home, and this can not only incur the same fees for you, but you have to make sure you are completing the transaction correctly when dealing with an unfamiliar bank, in an unfamiliar country, probably in an unfamiliar language.

For overseas money transfers most banks will charge a minimum fee, as well as a commission on the transfer, on top of the standard currency rates.

5 – Methods of Transfer

Banks and brokers are not the only ways you can transfer money overseas, and these are some of the other main methods you should know about:

* Cheque. A cheque is slightly less expensive than transferring the money in a wire transfer through your bank, but it also slower and less secure.
* Western Union. Western Union can be found in just about every county around the world and offer a fast and reliable overseas money transfer service. The costs will differ depending on where you are sending the money, but the transfers through Western Union are typically good value. However, there can be high fees involved in the transaction, which you need to weigh against security and ease of use. You should also know that Western Union have loosened their security requirements to make transfers easier on the receiving end. The recipient no longer needs to show any ID, they simply need the 10 digit Money Transfer Control Number.
* PayPal. PayPal will take a percentage of each overseas transaction you make so the more you’re sending the more you will pay. PayPal are also a very secure way to transfer money overseas as you are keeping your own bank account separate.
* Xoom. Xoom deposits the funds directly into the recipient’s bank account if you are transferring to the US, and gives you a more professional appearance because you don’t have to ask the recipient to go into a branch like they do with a Western Union transfer. While you aren’t told what the fees will be until they appear on your bank statement, Xoom is very reasonably priced but they do use your bank’s exchange rate.
* MoneyBookers. MoneyBookers is a London based company with a similar system to PayPal, but with more affordable fees. They also cap their fees when sending money, and charge a set fee to receive money.

Alban has been writing about personal finance for the last 3 years. Although he specialises in online savings account comparison, Alban also writes about various personal finance topics.

Monday, October 24, 2011

Tips in Avoiding Being Scammed in Rentals

The current economic crisis has created a new more ravenous breed of nefarious individuals aiming to rip off innocent individuals of their hard earned money. One of the more rampant schemes nowadays is a rental scheme that prey upon individuals in need of a roof over their heads. Not only do they lose their rental deposit, many individuals are duped into moving into homes after trusting individuals who did not have the right to rent out the property.

The following are tried and tested tips in avoiding being scammed in rental schemes:

Verify. When finding real estate renting leads, it would be best to verify the listing with the actual property. Many scammers use online services such as or message boards and newspaper advertisements to advertise alleged rentals. Many put much fluff into the ads to entice unwitting renters together with a disposable number. It would be best to visit the property and ask around before handing over your money to an individual you first met on renting a property.

Stories. Many scammers often have heart wrenching back stories to speed up the process of renting. It may be a claim of overseas missionary work or a break up to win the trust of the possible renter. Some would even quote bible verses to fully convince you of the need to fulfill the transaction at the soonest possible time. Checking out their stories as well as taking your time before undertaking the responsibility is key to avoid being scammed in a rental property.

Search. Do a cursory search of the individual as well as the property to be rented. Ask questions regarding the property and the renter’s contract. When the responses are vague or evasive, then this must put you on guard as to the true individual with the power to rent out the property. Many scammers would even rent out the property for a short period and then show the property to prospective renters. After duping them of their money, these short term renters suddenly fly the coop and leave the renter with the property without any right despite payment.

Reputation. Get possible rental leads from a reputed Realtor or agency. These may only be the legal entities with authority to represent the owner of the property. If they claim to be one, verify the name and see their reputation. As for possible renters, do a background check on these people to see their reputation. When these possible renters pay using another person’s check or in amounts different from what has been agreed upon in the contract, then this should put you on guard of a possible scam in the offing.

As can be seen, scams abound in the property market, not only in sales and purchases but even in renting or letting the property. One can avoid being scammed in rental properties by verifying the transaction, checking on the stories, doing a due diligence search and reviewing the background and reputations of the party entering the agreement. Once these are done, the rental can become real and financially rewarding in the long run.

For a more comprehensive discussion on overseas property investments, do visit us at Property Prices in Cities Increase Faster Research Shows. please visit  the author’s site The Property Community.

Saturday, October 22, 2011

Some people in these times are trying to make an income online from home

In the recent times, many people all over the world are  earning lots of income just by working from the confines of their homes. This is mainly because of the advancement in the internet technology. Today, there are lots of online jobs which can be done from home. There are lots of resources that can help you learn several jobs which you can do from home.

Many people are now working from home because of the several benefits that comes from such ventures. You work as your own boss without having to account to anybody. You also work at your leisure.  The most important aspect of it all is that you can even make enough cash working from home more that what you would have made from working in companies out there.  You also enjoy the liberty of changing your job at will.  The money you make from home also goes straight into your bank account. You simply walk to the bank to pick the cash at will.

The author of this article is not only interested  on “how to make money online” but also on saving when buying online with coupons ,for example with Discount Tire coupons or Nivea coupons.

Wednesday, September 28, 2011

Protect yourself from the debt collector’s traps

Credit cards are considered as a necessity when it comes to the daily life of an individual. Using the plastic money is nothing but a matter of convenience. But credit cards also mean the burden of repayment that might get out of hand due to unavoidable circumstances. Once a huge debt is built up, you might fall into the trap of the debt collectors. Falling behind in payments is sure to attract harassment calls from the debt collectors.

The debt collectors are the third party debt collection agents that are hired by the money lending organizations to retrieve the debt amount from the credit card holder. These debt collection agents try to collect the payments by hook or by crook. These third party debt collectors are governed under the FDCPA that is enforced by the FTC to ensure fair process of debt collection.

Some of the traps the debt collectors use to trap you are:

Call your closed ones for detailed information about you and in the process also harass you. They make calls to your office and inform your colleagues and managers about the debt you have. They also make calls to you repeatedly and harass you in public to retrieve the money that you owe to the creditors etc. Most of the time, they play with your emotions about your family and office to trap you. Calling your office folks and neighbours to inform them about your debt is a form of intrusion to your privacy.

The debt collection agents also pose as good Samaritans and coax you with nice words sometimes so that you get smitten by them and commit for payments in the process. To avoid the traps of such debt collection agents, it is best to be aware of all the tactics that they use to retrieve the money.

Friday, September 23, 2011

The importance of the global tax management services

There are many a complex issues that need proper management. Many business organizations are struggling to strike a balance between the value added tax planning and the mandatory reporting requirements. The planning of tax is a yearlong event and in case you are planning to reduce the tax bill of your business, you should ideally hire the global tax management services.

When compared with the local markets, the international business goes through some unique challenges regarding the tax management. The global tax management services team understands the various systems of taxation in all the different countries and thus can provide you with one of the best solutions regarding the filing of tax returns without any hassles.

When you are operating a multinational company, you should be aware of the ever changing rules and regulations regarding the tax laws. It is thus important to know of all the tax policies and practices that are compliant with the tax laws of the country. To keep track of all these, it is utmost necessary to hire the global tax management services that can take care of the taxation aspect of your business. The global tax management services have experts and professionals who can give you some tax friendly ways of business advice to help in reducing the obligations of taxes on your business.

The global tax management services also provide services that can meet the guidelines of taxation so as to avoid any payment of the fines or penalties. With the help of the global tax management services, your company can enjoy a flexible and a scalable as well a cost efficient option to address the taxation bills of your business. Since the experts from the global tax management services have proficient knowledge about the tax issues, they can help you company to easily come out of difficult tax situations.

Thursday, July 7, 2011

Tips to Get The Best Annuity Quotes For Your Investments

Before the purchase of any annuity, it is best to get the quotes. The annuity quotes will secure your investments and will also provide a decent return. There are various information sites, which offer the rates and provisions of annuities comparing each with one another. You could also find that you will receive, probably the best information regarding the matter. This quote is very much important to receive the best interest rate. But do not try to call any individual company, they could send a representative and you could be in a difficult position.

Though there are other parts of the insurance policy but the annuity quotes are said to be more important, since it is the prescribed rate of the policy which will provide you the actual return of the money you have invested in the policy. The policies that have comparative rates but may not always have the same length of surrender. But the return on the annuity part will be almost same. Of course, you will first choose the rate of annuity then invest in the prescribed policy. But try to avoid a long term policy, you could get disinterested.
Every annuity quote is calculated, based on different circumstances. In a website different annuity quotes are displayed. Many similar quotes could be followed by different companies. You will have to judge it methodically. There are many various variables, regarding every individual policy or mutual fund. Try to follow the path of safe investment and a registered company. This will keep your investment safe; do not get too much worried about the matter of annuity. Choose the regular income option and a safe investment product which will not fail you. A thorough research with some expert help will guide you to the chosen path.

Wednesday, July 6, 2011

Be Safe From Defaulted Loans

Sometimes, people find themselves in a jam; they find themselves in the midst of defaulted loans. They may have forgotten about paying a bill and also don’t have the money to cover it up. The things could have turned a little ugly if they find their car, needs immediate repair or servicing for the sake of keeping the job. All these situations leads them, of not to pay loans. They simply cannot arrange for the necessary money for making the payment. Since they may have taken the loan to get rid of the emergency situation at any cost.

But they could hardly imagine that they will remain a defaulter forever. The defaulted loans did not turn up the opposite way. So always be aware of taking loans, before thinking the source of repayment. First you must arrange your finances, and then go for the loan. Try to repay the loan as early as possible and do not seek abstentions. This will make a bad reputation on the part of the lender. They may not help in other difficult times. So you must be almost doubly careful before taking a loan. The lender always judges the capacity of the borrower.
So the lender always tries to keep track of the borrower before, before the loan gets settled. If the defaulted loans are not paid on the date of the payment, then the things naturally turns ugly. The next schedule of payment comes close and this leads to various types of problems. This puts much pressure on the borrowers also. They fail to seek any help from any part, and the situation turns really grave when they find that to repay a previous loan, they have to go for a fresh loan. But the borrower should also look at other hidden factors, before taking the loan.

Sunday, July 3, 2011

DUI Car Insurance Policies are Easy to Get

If you or any of your near ones have been accused of charges related to DUI or Driving under Influence, your must immediately look for DUI car insurance. Those driving under influence of drugs or alcohol are taken as high risk drivers. For all high risk drivers, the insurance premiums are always higher compared to other insurance policies. This is the probable reason why the majority of insurance agents do not prefer to go with such insurance policies. Despite, there are plenty of DUI car insurance companies that come up with super offers and profitable packages.

Prior to opting for insurance policies, whether it’s DUI or DWI, the premiums are abnormally higher for all high-risk drivers. Therefore, it’s better if you can do plenty of researches and compare the offers of all insurance companies. There are several insurers who bring exclusive offers for the high-risk drivers. Don’t commit the blunder to get captivated by the attractive schemes and policies on the first hand. Explore the sites, chalk out the prospective plans, hire a professional insurance agent and accordingly choose your appropriate plan.
One of the primary tasks for all DUI car insurance applicants is to get online quotes. With the help of quotes, one can have a fair idea of the premiums that are going to be charged. If you can take help of a free online quote tool, you can get all the quotes completely without any hassle. Once you provide all your information, you will be provided a wide variety of insurance quotes. Remember, the more quotes you have, the higher are your chances to get good deals from your insurance agent. There are various sorts of discounts offered by DUI car insurance companies. You should look for student discounts, economy car discounts and others as well.

Beverages POS – A Flexible Approach to Your Sale System

POS stands for point of sale. It is specific to the beverage industry. Beverages POS refers to a user-friendly and flexible sale system. It is really a very useful method to facilitate the accounting process in the beverage firms. It is modeled as an ERP module and allows you to have an access to the simplest accounting system. According to this system, the users will have one point of maintenance for their inventories, accounts receivable, general ledger, bank and tax information.

Starting a business is tough but managing a business is the toughest. Earning name and fame for your brand is not a child’s play. You need to draw a concrete business strategy to develop an enviable standard and target the new clients. So, the experts are engaged to provide solutions pertaining to different aspects of a business. Beverages POS is also a wonderful solution that perfectly fits one’s business easily.
Expansion of business is what every entrepreneur eyes on. Nobody is happy with the small size of his business unit. But growth depends on how efficiently the business is run. To ensure efficiency, you must integrate the beverages POS solutions into the business system. It will surely help your business thrive. Moreover, its functionality can be increased by adding new title, new locations, new modules to the existing system.
A beverage firm may be small or big. But size hardly matters when it comes to including beverages POS into your business model. It is touted as the most perfect solution for any beverage industry whether quick or full service is needed. The system provides the users with the simple but smart looking and well-featured ordering screen and remote printing facility. Needless to say, this advanced system enhances the efficiency of the workers. The business-owners can also avail the facility of advanced reporting and easy transmission to the accounting program. The beverages POS program is designed to help your business grow up in the best possible way.

Sunday, June 26, 2011

A Few Considerations Before You Buy Iraqi Currency

If you are looking for a suitable money-making option and you are still not getting the right idea, buying dinar can immensely help you. As far as Iraq’s present economic scenario is concerned, the value of dinar is rising higher and higher and the queue of investors are therefore elongating day by day. So, those who think that they might land up in losses can wipe off all their present fears and move ahead to invest in dinars. Well, if you are planning to buy Iraqi currency, it might seem a bit complicated. However, things can be eased if you take the online help.

There are many Iraqi dinar dealers available online who can help you buy Iraqi currency sans any hassle. However, several fraud cases keep arising in the currency exchange market. Therefore, it’s always advisable for every Iraqi currency buyer to check whether the dealer they are going to hire is registered or not with the Better Business Bureau and the US Treasury Department. It’s your sole responsibility to ask your dealer to produce all documents so that you can have a clear idea as to whether your dealer is professional or an amateur. A proficient agent will certainly be advantageous to work with rather than someone who is new in the business.
In the recent years, the Iraqi dinar business has attained huge significance. In fact, the majority of currency notes come with security features that can help you identify an original currency from a fake one. Be it 25000 dinar or 10000 dinar, make sure you do plenty of researches and know everything before you proceed to buy Iraqi currency. Remember, if your Iraqi dinar dealer is trustworthy, he will show you the path towards profit and prosperity while a fake one will only be concerned about his own gain.

Defaulted Student Loans – A Nightmare for Students

Although education today has become a necessity for every human being, one needs to have a strong financial support to pursue it with success. There are many economically backward students who take the help of loans to make their dream come true. However, it has been found that a big percentage of the students fail to repay the loan in time and therefore land up in unpleasant circumstances. Failing to pay back a student loan within the delinquency period is equivalent to a crime. Therefore, the victim might be subject to multiple legal actions and might even face trials. So, those with defaulted student loans are immediately required to take assistance from experts and free their loan status from all stains as soon as possible.

Now, those are unaware of the consequences of defaulted student loans must know everything so that they don’t dare to think of not paying a student loan in time. However, there are some who fail to repay loans owing to financial problems and some become negligent. Whatever be the reason, defaulted student loans can block one’s account, withheld tax returns, stop credit card transactions, hinder loan approvals and might even lead to imprisonment.
There are several ways through which you can get rid of the defaulted status. For instance, you can go for a rehabilitation program where you have to make a series of consecutive payments to the authority. Once the payments are made, your defaulted status gets waived off and you get back all the benefits that were earlier offered to you. You can even talk to your loan provider and convince him that you will surely repay the amount in the given time period. So, you can join a job and start paying month by month. If you wish, you can even talk to online financial experts.

Monday, June 20, 2011

Retirement Annuities – The Best Partner of Life

Retirement is an intimidating word for many. It is not because they will miss the working ambience they have got so much familiar with. A sense of apprehension germinates because of limited supply of finance in twilight years. But a wise planning in the formative years can sweep away all the monetary problems now and always. When it comes to ensuring a reliable source of income flow, retirement annuities make the most ideal choice for the investors.

When you call it a day, you have to rely on your pension to manage the household expenses. If the figure of pension is slim and saving is also of meager size, then meeting the monthly budget becomes a challenging task for you. An extra source of income brings one some relief and that is why timely planning is so much crucial. If you invest in the retirement annuities, then you do not have to worry about sailing through the financial turbulence. In fact, you will always be immune to any sort of crisis on the national and international economic platform.
Retirement annuities require you to make investment at a time or through some installments. However, the income disbursement will always be made through a series of payments till one breathes his last. In other words, one can be sure of getting the set income figure throughout his retired life. The steady flow of guaranteed income provides the retirees a sense of financial security and that is why the retirement annuities make the best choice for many annuitants.

 When you are inching toward the age of retirement, you are more likely to invest less risk and want to gain more return. The combination of low risk and higher return can only be achieved through retirement annuities products. Moreover, if the annuities enlist the name of your spouse too, the person will continue to get regular income after your demise. However, in that case, the size of income your will draw from the insurance company will be much smaller due to the extension of the income payment period.

Sunday, June 19, 2011

Equity Release – A Smart Way to Grab Happiness

If you have just a couple of days in hand to retire and you have still not chosen your appropriate retirement scheme, it’s not late. Well, this does not mean that you must go for pensions. If you want to live happily after retirement, equity release can be a great option. Rather, you can fulfill all your luxurious dreams and can even take care of your family as well. There are plenty of schemes under equity release that can absolutely gear up your lifestyle and make your retired life a joyous one. Now, the concept of equity release can seem a bit perplexed. Therefore, you can take advice from online equity release agents and accordingly choose your scheme.

As far as the term ‘equity release’ is concerned, it’s a scheme where a senior citizen or a retiree can release money in the form of equity he has accumulated all throughout the years against his own home. So, you will have to simply release cash to a home reversion company and in return you will be get payments either on monthly or weekly basis depending on the scheme you choose. There are plenty of websites that can help you connect to professional equity release representatives. If you wish, you can speak to them personally and fix up a personal meeting.
It’s always advisable for all equity release applicants to first know the terms and policies prior to applying. These schemes are exclusively designed for individuals who are either 55 or above. Moreover, you must own a property that should stand in good conditions. Remember, you can earn more only if you can provide your property in good conditions. Also, you are not required to leave your property or relocate. You are always allowed to stay in your own home as long as you can. Lifetime mortgage and home reversion schemes are the most reputed equity release schemes.

Sunday, May 22, 2011

How to Get a Car Even With Poor Credit History

If you find your self wondering how to get a car even with bad credit history, then this article is for you. Having a bad credit history means that you have had difficulties in the past to maintain good credit. This is a red flag to future lenders that you are trying to get to say "yes" to your car loan.

Unfortunately, a lower credit rating gives you less room to negotiate the terms and conditions of your car loans. Depending on the severity of your credit, you may be limited to what kind of car you qualify. It can be difficult but not impossible, to find a lender who is willing to take the risk of a client who is a high risk of potential default and recovery.

It is likely that with a bad credit history, you are stuck with a higher interest rate. Do not take it personally. It's just business, the lender is trying to protect in the event of default on the loan. You best move in defense of this is to start now to save for a large down payment, with the goal of 25 to 50 percent of the total purchase price. The more money you can put the power of negotiation that is more on getting the lender to say "yes."

Gather all your financial information into a complete personal financial statement. Collecting data on income, all financial obligations and what are your fixed expenses each month. Decide how much you pay for your car based on your income and expenses. Make sure you can easily afford the monthly payment, insurance and maintenance. Its aim is to show the lender or loan officer that his poor past credit history is not a reflection of their current situation.

His job is to convince the lender that you are a good risk and are responsible enough to repay the loan. Be sincere and honest when talking to the lender. If you have bad credit due to illness, established work, divorce, etc. or a foreclosure, then by all means explain what happened. Let them know that was the past and is in a better place now, rebuilding his life and credit history. Go with a positive attitude and confidence. You're selling the lender that you are responsible and able to repay the loan.

Once you get approval and get your car, make sure your payments on time or before the due date. This way you can rebuild your credit and build confidence and trust with your lender for future business.

Sunday, May 15, 2011

Mortgage Refinancing In Canada - The Recomendations

Canada Mortgage refinancing may be a course of action is not as easy as, for example, which is available to decide to refinance your mortgage then your credit has to deal with multiple anomalies such as late payments, bankruptcy cancellations, or unpaid medical bills, to call some. Also, for those living in the streets and to the point of losing your home it can be nearly impossible to obtain. 


It is a known truth that it is very difficult to refinance with bad credit. In a lot of circumstances women and men must register with insolvency. It will take a long time to come since the cessation of payments, in addition, these defaults may have some impact and influence on all creditors to whom you owe income. Grief is increasing in recent times these lenders have sophisticated software program that stores all data on all people who owe them money. They also share this information with other lenders making it even harder for you to obtain mortgage refinancing.

The explanation is that in recent years, lenders are wary of credit ratings of borrowers and credit history. Even the banks have to apply for funding just like the popular people that are so highly rated according to their history. Currently, you can find plenty of lenders wholesale market competition, moreover one that has not been subject to the mortgage companies only what is bad credit. An extensive case study and can present a number of good lenders confidence that they have plans to lend money to people with bad credit.

As with all things today, the web is the place to run to find a mortgage refinancing poor credit. An individual need to continually spend some time to contact at least 4-5 lenders and enable them to assess their condition and subsequently, I prefer the one that furnishes probably the most unusual agreement that meets their needs and resources. For the most perfect component along with a safe strategy to get out of your bad credit history and to get a mortgage refinancing bad is to compare the guidance of a financial professional who will be able to offer a sensible opinion and methods to refinance your mortgage.

There are several specialists in the network that offered monetary offer free advice to men and women, to their need. Just log on to network hunting for Internet sites that support this call for experts in the mortgage and offer free advice on ways to obtain mortgage refinancing even with bad credit. You could also see through their Web sites from the list of refinancing provides various financial institutions and then compare them using the net refinance mortgage calculator where you can really afford to refinance the mortgage. In addition, there have been many contacts online bad credit mortgage lenders allow you to configure your case and help you obtain a mortgage refinance you need to definitely wrong.

Sunday, May 8, 2011

The Ways To Refinance a Home Mortgage in UK

Refinancing Home Mortgage is sounds like a critical process, but trust me it is not that critical as far as United Kingdom as concerned. As a homeowner in the UK, there are many ways to refinance a home mortgage. 

If you want to refinance your home to get a more attractive offer that guarantees lower monthly payments, or simply to release the capital that has accumulated on your property. The process will be simple if you want to deal with the same lender.
Before setting out to change mortgage provider, or agreements, it is better to know what your current mortgage allows you to do and when. The terms and conditions of your mortgage will tell you if you are within the minimum period or whether there will be redemption penalties.
Obtain a statement from the redemption of their current mortgage provider. This statement specifies exactly the amount owed to the lender. Once you know the amount owed, you can go to the next step.
Request for a new agreement can be next step. Once you have found a new agreement is ready to refinance your home mortgage in the UK and can proceed to complete an application form for your new mortgage.
Then you have to investigate the best rate for your circumstances. Regardless of the financing option you choose, interest rates may differ between two companies. So it is better to approach different lenders directly and ask about the best deals on offer. That will help you to choose proper lender for you mortgage refinaning.
UK mortgage products come in many varieties such as fixed rate, variable rate, the types of covers, discount rates and the rate base of followers - known simply as tracker mortgages. It is better to get proper information about the pros and cons of each mortgage transaction form the lender.
You have to wait for a response from your lender. Once your new lender has reviewed your mortgage application, the company will send an agreement in principle and then they will send a person to inspect the value of your house. If they are happy with you offer they will accept the offer. Thats how Mortgage refinance processes in UK.

Sunday, April 17, 2011

Important Informations for Purchasing Life Insurance

Life insurance provides the security you need for your family. Life is a mixture of baggage to good and bad turn of events and we must be prepared for the worst to avoid stress later. In the case of an unfortunate incident can the picture of his family to suffer and to lower their standards of living? If the answer to this question is no, then of course, have a moment and reflect on the importance of how a policy may be in their lives.

The need for life insurance-
This is a practical thought to always evaluate the need for that item before taking it. In the case of life insurance, have an effective way to benefit if necessary. Get a life insurance policy must match your financial and personal situation. Life insurance is useful if you have direct dependents. It can be a family member or relative. Also ensure that you are generating a significant amount of family income to enroll the practice of a life insurance policy.

The amount of life insurance needed -
The assessment of the amount of life insurance you need should be your lifestyle in general. It is more practical to have what you can afford. The amount of life insurance you should get that depend on different factors in your personal life. Factors such as salary, number of dependents or relatives, and his department of history is important. An average of five to ten times the annual salary of a person is usually the general guideline to follow in the consideration of a number of life insurance.

The appropriate type of insurance policy-
Understand the different types of life insurance to know what is appropriate for your insurance needs. whole life insurance, variable life insurance and universal life insurance life insurance are common in the present. A whole life insurance policy for traditional life insurance in that they have no control so that your pool of money is being invested. The premium for a whole life insurance is effective only after the owner's death. Variable life insurance is another insurance option where the holder has control where they invest the accumulated cash reserves. The company will offer investment options and reserve growth will depend on the evolution of investment. Finally, a policy of universal life insurance is a more personalized. The owner may vary the premium and death benefit. This flexible option cost of the holder of the highest.

The cost of life insurance -
The life insurance cost will be lower when covered by a group insurance policy provided by the employer. The type of policy is another factor of life insurance cost higher. high-risk individuals with lifestyle and risk profession are also subject to pay more for life insurance.

Be sure to collect all information and comply with their ability to pay the insurance. Get professional advice and discuss the terms of a trusted broker.

Sunday, April 3, 2011

Tricky Ways to Profit from Stocks

Thousands of people are beginning to invest in the stock market with the dream of making millions overnight. But be aware of the risks can be very expensive. Many people have faced major financial problems after suffering huge losses in the stock market. So if you're wondering how to make a profit in this market fluctuates constantly, keep reading.

It is difficult for even the most experienced broker to pick the right material at the right time. When it comes to the stock market really can not trust anyone's expectations, as each person will give a different interpretation. Here are some tips to help you make the right decisions if you are thinking of investing in the stock market.

1) Be clear about your mission: It is first necessary to determine whether to opt for the long term or short-term benefit. This is important because it will help you decide on the method chosen to trade. It will also help judge the actions that you should buy to maximize your ROI. (Return On Investment)

If you go for long-term investment, then it is advisable to check on their performance in the last six months. It is always better to check out years of data if available. You need not be an expert to do an analysis of the company. A good look at the results of the company's market share will help you make the right decision.

If your goal is short-term benefit, then you can opt for day trading strategy. Stay away from volatile markets. Gradually experience will help you make the right choices while you are looking for stocks. Look out for companies that do not show a volatility in the stock market because there is less risk of loss with them. You should still check out the history of these companies also, but what you really care about is the immediate return of the company.

2) Study about the charts: You must learn to read the charts. This is important as this will help you determine the performance of the company in the future. Graphics can help in various ways and it is necessary to understand before investing in shares.

3) Look at the market on a regular basis: A common mistake that people often do is they start to keep an eye on the market only after investing money. Start watching the market even before you have invested in order to better understand the market and increase their chances of success. See market news regularly.

4) Start with small investments: You should start your investment career with the small investment. It is not advisable to risk their money by making large investments until you have enough experience.

5) Find a combination of investments: An effective strategy to build a plan for long-term investment is to diversify your portfolio in different sectors. Dissemination of their investments reduces the risks involved and help you reach your financial goals.

Making money in the stock market requires learning and experience. The most important tip is to not invest more money than you can afford to lose. Trade with wisdom and the stock market can be a great source of income for you!

Monday, March 21, 2011

Important Role of an Attorney in Debt Settlement

Debt settlement attorneys have special abilities that allow them to work closely with creditors to negotiate and reduce the debts of individuals. Often, creditors of the time may have an interest in the settlement of credit card debt with you when there is a good chance that you may not make the payment. This can be a useful settlement since it can save a lot of money without filing bankruptcy. In this situation a debt settlement attorney comes in. He has an important role in the entire settlement procedure. He is the one in charge in these situations.

Debt negotiation settlement requires the recipient of the loan to discuss payment terms with the signing of the grant money. You need to support everything that occurs in the process of debt negotiation. For example, if you requested the elimination of the debt of seventy percent, you need to submit the statements to support your request.

How an attorney works?
That is important to know exactly what these attorneys do. In essence, they check out all the debt you have, that is, without warranty, and your credit report. then they start with all this information and try to reduce the amount of money you owe, as well as work to remove any negativity from your credit report. You have to ask your attorney to try to negotiate the removal of any negative information that a creditor may report to credit reporting agencies. This will help make it easier to get back on their feet when they are struggling financially.

Which is often in the best interest of creditors agree to not report negative information to credit bureaus in return for a payment of debt settlement. Mostly creditors are in business to make money and have no funds coming in and not reporting the information, what we want, not paid at all. It is also important to note that hiring an attorney to pay the debt is different from going through some kind of credit counseling. Credit counseling is modified to be more of a learning process, while debt settlement is much more aggressive and is modified specifically to be a means of debt relief by reduction the amount of debt you have to pay.

Sunday, March 6, 2011

8 Quick Tips For Starting a Small Business

Everyone says that it is easier to be your own boss. How to start your own business has some foresight and planning.

You may eventually want to open a garden store, or sell antiques? Have you seen the perfect place for your small business, and you have little capital to work? Not so fast. You have to plan things a bit before jumping in with both feet. With a little extra time and extra phone calls the chances of success will greatly improve. Consider these tips for starting a small business :

1. Business Organization :-
You have to form a business organization. Will it be a corporation? If so, what type (S-corp? C-corp?) An association? A limited liability company? A limited liability company? There are different tax implications for each of them, and it would be best to consult an accountant and / or attorney. You need to have on board anyway, when its time to do your taxes.

2. File the necessary paperwork with the state and the IRS :-

Once you decide what the organization that you will actually submit to the state for legal recognition. Then, you must file an application with the IRS for an EIN (Employer Identification Number). Yes, there is a lot of filing to be done. You have to be constituted before a bank can lend money, or a landlord may enter into a lease with you, so this is the next critical step. Get it done as soon as possible.

3. Local zoning codes of research to make sure it can work where you want :-
Before you begin negotiating a lease with a potential owner of a kennel (for example), be sure to check local zoning regulations. Often, trade regulations can be restrictive. Some applications may require a conditional use permit (a discretionary permit can be difficult to obtain), or may be prohibited altogether.

4. Obtain the licenses required by the State and / or city.
Running a salon? Day care center? You need state licenses. Make sure you get the annual renewal, too. Other operations will require licenses from local businesses. Look in the front of the phone and call City Hall.

5. Have you determined the demand for goods or services you will sell? If so, will have a competitive price? This will be taken into account when overloading and taking into account the start-up costs (legal and accounting fees, rent, employee salaries, supplies, etc) For example: San Jose Real Estate business.

6. Do you have the best location?
Perhaps the proposed rent is a little high, but the main entrance will be in a busy area your potential customers will notice. Are there advantages and disadvantages that may apply in negotiations with the owner to help reduce the overall costs of monthly rent?

7. Need a loan to do the things?
If so, there are many financial institutions willing to lend in certain circumstances. You have to prepare a business plan and has really done their homework. See above for each of the factors listed above. The best you can do, the more likely to receive a bank loan. A reasonable request, on reasonable terms, without much risk will be better received by the financial actors. Show them the probability of success. They want to share their success.

8. Despite the above, do you have the time to invest in your dream? For a small business running is much more than a "regular" 40 hour work week. Some people estimate that at least twice. You can not do this to one side.

From a small business is not impossible, but requires painstaking work and foresight. Go through these tips, do some research and consult experts. I wish the best of luck!     

Sunday, February 27, 2011


When it comes to credit card debt, people are often confused. If you have a bad credit history, you should be aware that his reputation will hurt directly or indirectly.
Here are some common steps, however, ignores the people can use to get rid of credit card debt:-

1) First, you must be willing to face the debt problem and be willing to change their habits in order to solve it. If you need a helping hand to find the solution, then you should talk to someone you trust who can help.

2) Stop charging your credit card when you leave - and be aware of automated billing systems linked to your card. This will help greatly in reducing debt.

3) You need a well-planned strategy to reduce debt. Start by paying the smallest debt first, and then proceed to the next. A step by step approach will guide you to success.

4) Eliminate unnecessary purchases. This is often the most difficult since it is likely that this need be put in the position you are now. It is very important to meet only those needs that are essential.

5) Stop using credit cards or limit use to one. An alternative is to use debit cards.

6) Take appropriate action to begin to repay their debts immediately. Your actions will decide the efficiency of removing unwanted debts.
7) Consolidate all debts to pay a single amount. This will keep you away from facing a series of bills.

Be creative in your approach. Write down the things that you will be able to do as a result of payment of its debts and keep handy to remind you what's on the line.

If possible, create multiple revenue streams that will work for you while eliminating debt.

Once the debt is eliminated, not to return to old habits. These suggested steps can help eliminate debt effectively.

Sunday, February 20, 2011

8 Tips to Save Money for College Students

Many students support themselves with a limited budget while others may be living on the limited funds their parents allot them.While in school, and maybe even right after graduation, one will be a tight budget. you can save some money to be very important during their school years and beyond. Here is some tips to save money while in college.

1. Stop buying on impulse: -
Impulse shopping can be very tempting, while away from home. Before making a decision of purchase, ask yourself if it is really necessary.

2. Hide the credit cards:-
Many students are tempted to buy now and pay later. Unfortunately, these habits can come back to bite. If you find that you can not collect responsibly, credit cards hidden until you learn some moderation.

3. Giving up bad habits:-
Everyone has at least one bad habit. Maybe one smokes, drinks cosmos and there is no tomorrow, or buy expensive coffee before class. Whatever, that's enough. You will be amazed at the amount of money you save.

4. Search Offers:-
When shopping, look for clearance items or two-for-one bargain, buy used books instead of new, and for special rather than something off the menu. If you can find a bargain whenever you shop, you'll save more money than you ever imagined.

5.  Stop Keeping up with the neighbors: -
The fact that your roommate or your friends down the hall has a seemingly endless subsidy that does not mean you are too. Try to avoid keeping up with the neighbors and to stick to your budget.

6.visits Library:-
Did you know that most libraries that offer the chance to check out DVDs, CDs and other forms of entertainment for free? Well, yes, and taking advantage of this resource, you can remove the money spent on the purchase of CDs and movie rentals.

7.Stay at home:-
While it may be nice to leave the residence from time to time, staying home is much cheaper. Instead of going out at night, invite some friends over for movies, games, information, and snacks.

8. See a Matinee: -
Going to the movies with friends can be an expensive departure. Instead of going at night, try to catch a matinee. Daytime shows are usually half the price of their counterparts in the night and can be as fun.

Thursday, February 10, 2011

Reality Bites : Credit Cards

In today’s fast moving world Credit Card is one of most sought thing in ones life. It is a gift of the modern age. It is also known as plastic money. It adds buying power, convenience, security and helps in building credit worthiness for a consumer. According to a survey customers who uses a card may spend up to 2.5 times more than a customers who use cash which can eventually translate into a 40% sales increase for business that accepts credit card. 

It also gives access to credit in times of emergency. Beside access to credit it allows a smart of transaction, hassle free shopping which not only saves valuable time but also provides security against theft. A consumer can always a use a credit card for every small transaction instead of writing a check or even going to the branch to withdraw money. 

In addition to this many cards offers buyer protection in case of defective merchandise or fraud. There are also special protection plan available which allows identity theft protection to a card user. Finally a credit card user can build his credit score or credit worthiness by paying up credit card bills in time. This eventually helps in long term access to Personal Loans, Auto Loans and Home Loans. Banks and Financial Instructions at times refer back to prompt of credit card payment as one of the criteria while they process a loan.

But the reality is quite different at times. With use of credit cards there is always a temptation of overspending and live beyond one’s means. Not being able to pay back on time results in paying up very high rates of interest and damaging one’s credit worthiness which makes to difficult to obtain any further loans. It becomes high alerting situation when a card user falls into the trap of revolving credit. This not only washes away his capital but also makes him/her as defaulter. For example, a developing economy like India credit card as a inflow of credit to the consumer resulting in higher spending and then to higher rate of inflation exactly what we had learn in economics. 

Moreover at times the credit card companies have been accused of targeting a younger audience which includes college students, young professionals who are less experience at managing their own finances. Beside these there are loopholes in the credit card contracts that allows the issuers to charge a high rate of interest than normal in case of payment default. Another grey area in this regard is the trailing interest issue. 

Trailing interest is the practice of charging interest on the entire bill no matter what percentage of it is paid. Card issuing company also are accused at times of charging different rates to different person.
So overall we could see credit card is one of most sought after thing in modern era especially for person from cosmopolitan background. However we should not forget our roots. It is always advisable to consider credit card as secondary (emergency) option rather than primary.