Tuesday, March 24, 2009
Sunday, February 22, 2009
Smart credit management is a key to financial freedom and the various credit repair agencies are doing their job sincerely. But it’s also a fact that when many options are given, people can’t choose the right one and failing to do so make them exposed to various frauds, making the situation even worse. Credit management is a serious issue and the following tips will help you choose and judge the best credit repair agencies, so that you actually overcome your bad credit.
Always check the written documents and contracts before opting for any credit repair service. According to the federal Credit repair organization act, the credit repair agencies (except non-profit organizations) must give written documents of the offer before any agreement is made. So make sure that the agency you have opted for is following the procedure mentioned as it is the first step to judge the authenticity and quality of the agency.
Do not pay money before the work is actually done
No company can ask for payment before the work is actually done as this is totally unlawful. Always pay the money after you get your revised credit report issued by the credit bureau after six months of the correction made.
Self correction of credit report
It is unknown to many but you can actually rectify the mistakes in your credit report and the credit reporting agencies will guide you on that, without any fees. You can also get another copy of the report, free of cost.
No one can correct any negative item
If there is any incorrect information in your credit report, then you can rectify those. But remember that no agency can remove any negative item from your report if the information is accurate. It is infact unlawful. So if any agency promises you to remove all the negative items from the report, then think twice before going for that agency.
Sunday, February 1, 2009
Some industries, such as payday loans, have been faulted for having high interest rates. However, even conventional lenders are beginning to hike their interest rates on credit card accounts without warning. There are many products that have been abused by banks, who claim the higher moral ground, that have literally devastated people's lives because of a rise in interest rates. The first of these was the adjustable rate mortgage, which literally caused the mortgage default crisis.
The Adjustable Rate Mortgage
Interest rates on adjustable rate mortgages were teaser rates far below what a fixed rate mortgage would allow. This gave people the opportunity to buy a much more expensive home with a smaller payment. However, the teaser rate would soon expire and a new payment balance was sent out. This happened quite repeatedly until the homeowner had little option, but to default on the loan.
Now, the credit card balances are set to default for exactly the same reason, except that many cardholders did nothing to merit the increase. That's because banks can choose to change the interest rate without giving a reason and are much more resistant to lowering as many of them are bleeding money right now. Some rates can go up over 30%, an outrageous interest rate.
How Payday Loans Differ
A payday loan does have a high interest rate when compared to the amount of money that is being borrowed and the time to repayment (typically the next business cycle). But, since it is not meant to be revolving or long-term credit, it is a one-time deal, and not a life-long anchor. If a person misses repaying the amount on time, then it can balloon, just like any past due account. However, most loans are limited to $300 to $600, unlike a home loan or a credit card.
The Final Word on Interest Rates
So, while it's important to look at interest rates when taking out a loan, you shouldn't miss the repayment terms. You might discover that the terms are subject to change without notice and that is really the type of contract you want to avoid in this chaotic market.
Wednesday, January 21, 2009
So do your financial planning without anyone’s help and get an idea about your risk taking ability and where to invest before investing.
Your age? (Age is an important factor in deciding what amount of risk to take)
• 25 to 35
• 35 to 50
• 50 to 65
• Above 65
Your position is best described by:
• You are self-dependent and don’t support anybody
• You have dependent(s)
• Nearing retirement
How much of the following needs have been taken care of? (Fully, partially, not at all)
• Children’s education
What proportion of your current expenses is funded from your investments?
• Upto 15 %
• 15 to 30 %
• 30 to 50%
• More than 50%
Your earnings in the future will:
• Far exceed inflation
• Marginally ahead of inflation
• Keep pace with inflation
• Will not keep pace.
If the price of the shares you are holding falls, then you will:
• Sell all of them
• Sell some of them
• Keep them as it is
• Buy more of them
If you answer these questions and find answers on your own then you will be able to get an idea about your financial standings and what step to be taken. I think everyone must do this financial check up to avoid heavy loses and to go for the right investment path.
Sunday, January 18, 2009
Millions of investors have incurred heavy loses by the end of 2008 following the 1 year of unprecedented stock market volatility. This has not only shaken the confidence of the investors, but also made the situation worse as many such investors have already withdrawn considerable sum of money from the various instruments where they have invested. But in contrast to this situation, the global bond investors not only managed to escape the loss, but also bagged considerable profits. Now we may think that what is so special in bonds and what is the reason behind its success. Bonds are debts which are issued by the government and companies. When a person is buying a bond he/she is actually lending the money he/she has invested to the government or companies for a certain period of time. Its just like you are lending the money to someone and getting the interest in return. But your principal amount which you have invested or is safe. Taking care of the present financial market condition it is suggestible to invest in bonds as they are the simplest and safest mode of investment. If this is not enough to motivate you then few facts and figures about the bond performance will be enough I think. It has been seen that the global equity funds have fallen by 24% in 2008 but in comparison the global bond portfolio was up by 16%. The Renfield US government bond fund performed very well with a huge growth of 58%.Quite strange yet a positive indication to the investors. The list doesn’t come to an end. There are other players too. The SWIP global bond fund experienced a growth of 53%,
Monday, January 5, 2009
Beside, I have also seen a trend among the young generations to make quick money. They always avoid long term plans thinking of the tenure of those plans. Its my message to the young generations, to go for pension plans, as, time really passes very quickly. So its time to build your future and if you save today after 15 years you will get benefited. Don’t look into the past performances or how much return a plan gave, but look into the basic structuring of a plan, how it works and how you will get benefited. The present situation is so unpredictable that going for long term plans can really benefit you.
Investment to me is just making right choices and just a matter of patience and patience always pays…
Tuesday, December 30, 2008
Human beings are rational animals. We have the power to think, strategize and create such things which can really change the whole functioning of the society and the world as a whole. But beware of few such animals who never think twice before locking up their rationality in their cupboard. Hence they are only “animals” or if the term is too harsh, you can call them “Identity Thieves”. Friends, no need to lock your doors as they will not infiltrate into your home directly, instead they follow a cowardly approach of stealing personal information like social security number, credit card number or any information which is valuable to you , through the misuse of technology. So it’s a real problem as you don’t know where they are and who they are. But apart from being rational, we are smart too.That’s why we are humans and we have managed to device an excellent weapon to kill this non-violent yet dangerous crime. The weapon is THE IDENTITY THEFT INSURANCE.A recent study conducted by the Federal Trade commission revealed that in 2005, around 8.3 million Americans fell victim of identity theft and the thieves accumulated around $6000 worth goods and services from just 10% of the victims. Besides 56% of the victims were unable to give any information as they were clueless. In majority of the cases credit card and debit card numbers were stolen. But thanks to IDENTITY THEFT INSURANCE which will not only cover you, but will also protect you from possible threats.
How it Works?
Besides, the policies have various preventive schemes and under these schemes regular alerts, newsletters on identity theft prevention tips by experts are sent to to the policy holders. This creates an environment of alertness which subsequently lowers the risk of frauds and misuse of personal information.
After purchasing the policy if someone fall victim of identity theft then there are experts who take care of the whole recovery process. There are specially appointed recovery advocates who handles all the disputes regarding the recovery. Besides, these experts work on civil and criminal judgment issues and provide necessary information to the Federal Trade Commission to solve the case more quickly and save time of the victim.
Under the reimbursement programme individual and family policy holders can be reimbursed up to a theft of $20,000, inclusive of the fees and costs involved in the recovery process.
I think that Prevention is always better than cure and trust me such an insurance for you and your family will prevent you from many threats which may be you are unaware of.