Chances are if you are just starting in two real estate investment you may have some of your own capital to invest and this may be the very reason that you are looking at doing some real estate investment as a means of increasing your capital. Then on the other hand you may be searching for loans for real estate investing.
There is the possibility perhaps that you don't have enough money for the property that you are thinking of investing in and it's important that you find a place where you can get investor loans. You must realize that investor loans are far different than when you are obtaining your mortgage for your primary property.
Here are some things you will want to keep in mind when looking for loans for real estate investing.
- One thing you will find though that it shouldn't be all that difficult provided you qualify to obtain an investor loan.
- Another thing you must remember is if one place turns you down don't give up. Look for another place. Sometimes the banks will not finance this type of venue but then there are other lending institutions that will.
- . It's not just a matter of you going out and getting the money and hoping that your real estate investment is going to pay off. You will have to prove first of all to the lending institution that the prospect of what you are thinking of entering into for your real estate investment is a viable one. This means that you will have to have some sort of study or plan put in place that you will be able to present to them.
- The other thing you want to remember is not to settle for the first loan that you come across. Before you accept you really need to do your homework and check out the different options for loans for real estate investing that are available to you as they may all vary in their interest rates.
- Then you also have to realize that borrowing money is going to cost you aside from the interest that you're going to be paying on it. There will be closing costs as well so you need to do a study of how much money you anticipate making off your real estate investment compared to what you are going to be paying out in interest rates on your loan as well as your closing and carrying costs. Be sure when you start to go out looking for your investment capital that you realize all of the costs that are involved.
Keeping these few tips in mind will certainly be beneficial when you start out in your search for loans for real estate investing
Thursday, November 26, 2009
Saturday, November 14, 2009
CREDIT CARDS-AN INNOVATIVE FINANCIAL INSTRUMENT IN BANKING
Introduction:
A credit card is a monetary instrument that enables the cardholder to obtain goods and services without actual payment at the time of purchase. It is also popularly known as plastic money. The value of purchases made by the cardholder using the card is recovered at the end of a specified period, usually a month, called the billing cycle. It can be said that a credit card is basically a "Pay Later" card that is provided to a customer.
How do credit cards work?
Every transaction made on a credit card involves three parties:
Card Issuer
Cardholder
Trader
A credit card holder, subsequent to making a purchase or availing a service at a designated trader, presents his credit card instead of paying cash. The trader checks the number of the card against the Hot List provided to him by the Card Issuer, to ascertain the authenticity of the cardholder. The signature of the cardholder on the voucher provided by the trader should tally with the signature on the credit card.
The trader then presents the sales vouchers to the bank, which reimburses it, after charging commission. At the end of each billing cycle, the value of the transaction is included in the statement mailed to the cardholder.
Business Associates: The card issuer sometimes enters into a contract with organizations that also issue cards on behalf of the issuer to the clients. The organizations that issue cards are known as Business Associates or Member Affiliates. Cards issued by Member Affiliates are similar to credit cards except for the name and logo of the Member Affiliate besides the name and logo of the issuer. This type of arrangement enlarges the scope and operations of the credit card issuer.
Clearing Houses: The card issuer generally affiliates itself with the clearing house usually, MasterCard International or Visa Card International act as on behalf of the issuer. This enables the cardholder of one affiliate to use his card at the Merchant Establishment of another affiliate.
Benefits of credit cards:
1. Credit can be availed for a period of 30-50 days.
2. A cardholder need not have the required amount in his account to the extent of the transaction made.
3. The card carries a predetermined limit up to which the holder can spend.
4. At the end of each billing cycle, the cardholder has to pay a minimum sum of the bill normally 5-10% and the rest can be paid in installments over the next few months/years.On outstanding balance, a nominal rate of 1.5 to 3% per month is charged as interest.
5. Regular use of the credit card by the user earns him additional points that provide the cardholder with discounts on purchases.
In addition to the above benefits, many problems associated with credit can be avoided through the use of credit cards. In many businesses, particularly in the retail and consumer service fields, credit arrangements for customers are available through the use of these cards. Under these plans, there is little or no commitment of the business's own capital, and the costs and risks of administration and collection are almost entirely the responsibility of the Credit Card Company or bank.
Credit card service is available from one's regular commercial bank. Receipts from bank credit card purchases can be deposited daily and are immediately credited. The bank assumes all credit risks provided that one follows instructions for approval of credit card purchases. Typically, these instructions require that one checks the validity of the card against a master list of canceled cards and contact the credit service before accepting the customer's card for purchase above a certain limit.
Credit card services are particularly vital for businesses with a large number of relatively small accounts. They eliminate the need for credit approval, invoice preparation, record maintenance, and collections. They also minimize one's commitment of capital and virtually eliminate the risk of uncollectible accounts. From a marketing standpoint, the availability of instant credit could often encourage a customer to buy immediately, rather than postpone the decision to a later date or bypass it completely.
Credit cards are most often used for retail accounts. However, they have also been used successfully in selling to small commercial accounts. Businesses such as repair shops, supply firms, and stationery stores, which have a mixture of consumer and commercial accounts, often find it convenient and economical to extend credit card service to small commercial accounts. Benefits provided by credit cards are not limited to the credit facility alone.
Besides that following are the additional benefits available to the credit card holders, namely,
Personal Accident Insurance. Credit card issuers have introduced a free insurance cover to the cardholder against loss of life due to accidents.
Cash Withdrawal Facility. A pre-determined credit and cash limit is provided to the cardholder at Automated Teller Machine (ATM) facilities.
Increase in Credit. Cardholders with a good credit track record are provided with_t'1 increased credit limit for a short period of time, whenever required.
Add-On cards: The spouse, parents and children, over eighteen, of the cardholder, are provided with add-on cards on payment of a specified fee.
Leveraged Investment Facility: This facility enables the cardholders to subscribe to designated equity or debenture issues in the primary market and schemes floated by mutual funds.
Factors that contributed to the increased uses of credit cards:
The perception to own credit cards has changed and cards are being viewed as a convenient substitute to carrying cash and also availing credit for short periods.
India ranks at the bottom in terms of usage of credit cards when compared to China, Taiwan and Malaysia.
Usage of credit card picked up only last ten years.
Indians viewed the cards as a luxury and so, Indian banks were not willing to venture it.
Over the last ten years, things have changed drastically since the idea of owning a credit card has had its roots in the minds of millions of Indians.
Enlightened customer has started viewing the card as a convenient substitute to carrying cash.
The change in mindset is clear from the growth, both in terms of absolute numbers and growth rates.
The importance of having a pie in the credit cards segment was not lost on any bank, and most banks started their credit card operations. Currently, there are more than 20 banks offering credit cards, but the market share of the top five exceeds 75%.
Credit card is a low-margin but high-volume business.
The initial investments required by a bank are very high.
The income per card is low, thereby requiring large volumes in terms of cards issued and the transactions finance to make the operations profitable.
The bigger businesses and merchants are already acquired by the existing players, so for new banks, braking into this business and convincing a merchant is increasing because the banks are shifting towards lower end merchants.
Competition in acquiring business, new categories of merchants are coming up.
The foreign banks have a dominant share due to various reasons like having been in the field for decades, sound operational and financial strength, strong brand recognition etc.
They were catering to the upper segments and charged high annual fees.
According to Visa International, an average Indian cardholder uses his card 9.3 times. A number of card owners do not use their cards and almost 20-30% cards are inactive.
In India, two players dominate the credit cards industry,-Visa and MasterCard and 15 out of 17 banks provide credit card services through Visa or MasterCard.
Banks adopted a strategy of reaching lower down the income strata by lowering down their eligibility norms, the credit limits are set at lower levels as compared to the foreign banks.
As a result of this strategy, the credit cards base is widening day by day with the increase of base in B-grade cities.
Conclusion:
From the above, it is felt that, Credit Card has performed well to the needs of the people. At the time of introduction the people does not welcome it, because it is mostly used for a particular activity only, but today it is boon to all the mankind.In India the entry of Credit Card is success due to the join hand of GE Capital and State Bank of India, no doubt but still Credit Card consciousness is lacking among many people. This is mainly due to the card fee and interest charges. So the immediate need is to take more effective measures so as to make Credit Card attractive. Such an attempt will enable Credit Card to achieve greater heights in banking sector.
A credit card is a monetary instrument that enables the cardholder to obtain goods and services without actual payment at the time of purchase. It is also popularly known as plastic money. The value of purchases made by the cardholder using the card is recovered at the end of a specified period, usually a month, called the billing cycle. It can be said that a credit card is basically a "Pay Later" card that is provided to a customer.
How do credit cards work?
Every transaction made on a credit card involves three parties:
Card Issuer
Cardholder
Trader
A credit card holder, subsequent to making a purchase or availing a service at a designated trader, presents his credit card instead of paying cash. The trader checks the number of the card against the Hot List provided to him by the Card Issuer, to ascertain the authenticity of the cardholder. The signature of the cardholder on the voucher provided by the trader should tally with the signature on the credit card.
The trader then presents the sales vouchers to the bank, which reimburses it, after charging commission. At the end of each billing cycle, the value of the transaction is included in the statement mailed to the cardholder.
Business Associates: The card issuer sometimes enters into a contract with organizations that also issue cards on behalf of the issuer to the clients. The organizations that issue cards are known as Business Associates or Member Affiliates. Cards issued by Member Affiliates are similar to credit cards except for the name and logo of the Member Affiliate besides the name and logo of the issuer. This type of arrangement enlarges the scope and operations of the credit card issuer.
Clearing Houses: The card issuer generally affiliates itself with the clearing house usually, MasterCard International or Visa Card International act as on behalf of the issuer. This enables the cardholder of one affiliate to use his card at the Merchant Establishment of another affiliate.
Benefits of credit cards:
1. Credit can be availed for a period of 30-50 days.
2. A cardholder need not have the required amount in his account to the extent of the transaction made.
3. The card carries a predetermined limit up to which the holder can spend.
4. At the end of each billing cycle, the cardholder has to pay a minimum sum of the bill normally 5-10% and the rest can be paid in installments over the next few months/years.On outstanding balance, a nominal rate of 1.5 to 3% per month is charged as interest.
5. Regular use of the credit card by the user earns him additional points that provide the cardholder with discounts on purchases.
In addition to the above benefits, many problems associated with credit can be avoided through the use of credit cards. In many businesses, particularly in the retail and consumer service fields, credit arrangements for customers are available through the use of these cards. Under these plans, there is little or no commitment of the business's own capital, and the costs and risks of administration and collection are almost entirely the responsibility of the Credit Card Company or bank.
Credit card service is available from one's regular commercial bank. Receipts from bank credit card purchases can be deposited daily and are immediately credited. The bank assumes all credit risks provided that one follows instructions for approval of credit card purchases. Typically, these instructions require that one checks the validity of the card against a master list of canceled cards and contact the credit service before accepting the customer's card for purchase above a certain limit.
Credit card services are particularly vital for businesses with a large number of relatively small accounts. They eliminate the need for credit approval, invoice preparation, record maintenance, and collections. They also minimize one's commitment of capital and virtually eliminate the risk of uncollectible accounts. From a marketing standpoint, the availability of instant credit could often encourage a customer to buy immediately, rather than postpone the decision to a later date or bypass it completely.
Credit cards are most often used for retail accounts. However, they have also been used successfully in selling to small commercial accounts. Businesses such as repair shops, supply firms, and stationery stores, which have a mixture of consumer and commercial accounts, often find it convenient and economical to extend credit card service to small commercial accounts. Benefits provided by credit cards are not limited to the credit facility alone.
Besides that following are the additional benefits available to the credit card holders, namely,
Personal Accident Insurance. Credit card issuers have introduced a free insurance cover to the cardholder against loss of life due to accidents.
Cash Withdrawal Facility. A pre-determined credit and cash limit is provided to the cardholder at Automated Teller Machine (ATM) facilities.
Increase in Credit. Cardholders with a good credit track record are provided with_t'1 increased credit limit for a short period of time, whenever required.
Add-On cards: The spouse, parents and children, over eighteen, of the cardholder, are provided with add-on cards on payment of a specified fee.
Leveraged Investment Facility: This facility enables the cardholders to subscribe to designated equity or debenture issues in the primary market and schemes floated by mutual funds.
Factors that contributed to the increased uses of credit cards:
The perception to own credit cards has changed and cards are being viewed as a convenient substitute to carrying cash and also availing credit for short periods.
India ranks at the bottom in terms of usage of credit cards when compared to China, Taiwan and Malaysia.
Usage of credit card picked up only last ten years.
Indians viewed the cards as a luxury and so, Indian banks were not willing to venture it.
Over the last ten years, things have changed drastically since the idea of owning a credit card has had its roots in the minds of millions of Indians.
Enlightened customer has started viewing the card as a convenient substitute to carrying cash.
The change in mindset is clear from the growth, both in terms of absolute numbers and growth rates.
The importance of having a pie in the credit cards segment was not lost on any bank, and most banks started their credit card operations. Currently, there are more than 20 banks offering credit cards, but the market share of the top five exceeds 75%.
Credit card is a low-margin but high-volume business.
The initial investments required by a bank are very high.
The income per card is low, thereby requiring large volumes in terms of cards issued and the transactions finance to make the operations profitable.
The bigger businesses and merchants are already acquired by the existing players, so for new banks, braking into this business and convincing a merchant is increasing because the banks are shifting towards lower end merchants.
Competition in acquiring business, new categories of merchants are coming up.
The foreign banks have a dominant share due to various reasons like having been in the field for decades, sound operational and financial strength, strong brand recognition etc.
They were catering to the upper segments and charged high annual fees.
According to Visa International, an average Indian cardholder uses his card 9.3 times. A number of card owners do not use their cards and almost 20-30% cards are inactive.
In India, two players dominate the credit cards industry,-Visa and MasterCard and 15 out of 17 banks provide credit card services through Visa or MasterCard.
Banks adopted a strategy of reaching lower down the income strata by lowering down their eligibility norms, the credit limits are set at lower levels as compared to the foreign banks.
As a result of this strategy, the credit cards base is widening day by day with the increase of base in B-grade cities.
Conclusion:
From the above, it is felt that, Credit Card has performed well to the needs of the people. At the time of introduction the people does not welcome it, because it is mostly used for a particular activity only, but today it is boon to all the mankind.In India the entry of Credit Card is success due to the join hand of GE Capital and State Bank of India, no doubt but still Credit Card consciousness is lacking among many people. This is mainly due to the card fee and interest charges. So the immediate need is to take more effective measures so as to make Credit Card attractive. Such an attempt will enable Credit Card to achieve greater heights in banking sector.
Friday, November 13, 2009
Could this be the end of free banking?
Banks could be changing the way in which accounts operate, as high street banks have been put under pressure in the way they issue charges to customers for breaking terms, such as exceeding agreed overdrafts. This will mean that they will have to explore new avenues for raising revenue, which is likely to lead to the end of free banking.
Paid accounts, mortgages and overdrafts would be affected by the changes, as reliance on the significant charges issued to customers would be reduced.
A ground-breaking court case has been under way over these charges for quite some time in which a number of banks are involved. The Supreme Court is expected to rule on whether the Office of Fair Trading can assess their fairness within the next few weeks.
But despite the outcome of the case, banks are taking action in order to prepare themselves for surviving without this lucrative income stream.
Richard Kibble, a partner at PwC, said:"Current accounts seem to be heading towards a very different structure,"
"Banks are getting ready for that. They are looking at the options in a new market where there won't necessarily be free banking."
If banks lose the case, their profits will be substantially reduced while margins are being squeezed due to low interest rates and the need to offer high savings rates on accounts to attract deposits.
Banks could still effectively lose out even if they win the court case, as the government is likely to put pressure on them to reduce unauthorised overdraft fees.
"Whatever the outcome of the case, the banking industry will change as we know it," says a Which4U analyst.
One of the first high-street banks to react to the on-going case was the 70% government owned RBS, after it cut the fee applied to customers who exceed their overdraft limit in half, from £30 to £15.
"If you look at the moves already made, that is a pretty strong signal of where charges will end up," says Mr Kibble.
British banking is unique in the way that customers can currently bank for free. The rest of Europe and indeed the world are accustomed to account keeping fees. But this may be about to change.
There are a number of ways in which banks could substitute this revenue lost through reduced fees. However, the most likely actions include looking towards monthly account keeping fees for basic services, including overdraft facilities, debit cards and even cheque books. Another option could be to take the "pay-as-you-go" approach, whereby charges would be applied for transactions and cash withdrawals.
This will mean that banks will face a big challenge in order to persuade customers who are used to paying nothing for an account to accept paid-for accounts.
We may find that in the initial stages, banks show a reluctancy to lead the pack into the realms of paid-for accounts, as this could significantly damage their customer base. For this reason it is likely that banks will offer something to attract customers, such as introductory deals with no charges for a fixed period.
Paid accounts, mortgages and overdrafts would be affected by the changes, as reliance on the significant charges issued to customers would be reduced.
A ground-breaking court case has been under way over these charges for quite some time in which a number of banks are involved. The Supreme Court is expected to rule on whether the Office of Fair Trading can assess their fairness within the next few weeks.
But despite the outcome of the case, banks are taking action in order to prepare themselves for surviving without this lucrative income stream.
Richard Kibble, a partner at PwC, said:"Current accounts seem to be heading towards a very different structure,"
"Banks are getting ready for that. They are looking at the options in a new market where there won't necessarily be free banking."
If banks lose the case, their profits will be substantially reduced while margins are being squeezed due to low interest rates and the need to offer high savings rates on accounts to attract deposits.
Banks could still effectively lose out even if they win the court case, as the government is likely to put pressure on them to reduce unauthorised overdraft fees.
"Whatever the outcome of the case, the banking industry will change as we know it," says a Which4U analyst.
One of the first high-street banks to react to the on-going case was the 70% government owned RBS, after it cut the fee applied to customers who exceed their overdraft limit in half, from £30 to £15.
"If you look at the moves already made, that is a pretty strong signal of where charges will end up," says Mr Kibble.
British banking is unique in the way that customers can currently bank for free. The rest of Europe and indeed the world are accustomed to account keeping fees. But this may be about to change.
There are a number of ways in which banks could substitute this revenue lost through reduced fees. However, the most likely actions include looking towards monthly account keeping fees for basic services, including overdraft facilities, debit cards and even cheque books. Another option could be to take the "pay-as-you-go" approach, whereby charges would be applied for transactions and cash withdrawals.
This will mean that banks will face a big challenge in order to persuade customers who are used to paying nothing for an account to accept paid-for accounts.
We may find that in the initial stages, banks show a reluctancy to lead the pack into the realms of paid-for accounts, as this could significantly damage their customer base. For this reason it is likely that banks will offer something to attract customers, such as introductory deals with no charges for a fixed period.
Thursday, November 12, 2009
Make a protected bet on saving account
In the preceding years, the banking system of India was not at all identical to the one people see these days. It has matured a lot in past decade or so and has witnessed some significant modifications lately. The banking system of the nation has modified itself only to fulfill the needs of its growing customers. At present, with the emergence of foreign and private sector banking companies, the scenario of the national banking industry has changed significantly.
Nowadays, banks are adopting a customer-centric approach, so as to live up expectations to the necessities of their people and has rolled-out various new products and services.
When an individual thinks of the bank accounts, saving account is the first thought that strikes his mind. This account has gained credence in the Indian society as it provides a secure space to deposit funds and yield interest as well.
The higher monthly interest on the money placed in the saving account is the massive crowd pullers for this service. Starting a savings account and regular deposits in it can be looked at as a sort of an investment and it can also be taken as a very good bonus to inculcate the sense of saving funds. The interest rates in a savings account are at a proper level but is not good enough for some people.
Savings accounts are provided by nearly each the banks in the nation, but the State Bank of India comes out to be the most preferred banking alternative in the market, while Punjab National Bank and ICICI Bank are few other public and private banking entity which are preferred across India.
Talking about SBI, its saving accounts manual contains 2 accounts, one is saving account and second one is saving plus account. Both the accounts differ in their operations as the first one is used by the people for their future financial necessities, while the latter provides the benefits of saving account along with term deposit account.
When clients get their savings account opened with bank they receive a detailed monthly statement and also get access code to electronic fund transfer functionality. This help the clients to utilize several services such as Online bank balance checking, withdrawals and deposits of an individual's account quite an easy job. Money transfer functionality has excellently served countless individuals by transporting cash from one account to other account in any branch of any banking entity around the world. This has made things a lot easier for businessmen, students and people from various walks of life.
Nowadays, banks are adopting a customer-centric approach, so as to live up expectations to the necessities of their people and has rolled-out various new products and services.
When an individual thinks of the bank accounts, saving account is the first thought that strikes his mind. This account has gained credence in the Indian society as it provides a secure space to deposit funds and yield interest as well.
The higher monthly interest on the money placed in the saving account is the massive crowd pullers for this service. Starting a savings account and regular deposits in it can be looked at as a sort of an investment and it can also be taken as a very good bonus to inculcate the sense of saving funds. The interest rates in a savings account are at a proper level but is not good enough for some people.
Savings accounts are provided by nearly each the banks in the nation, but the State Bank of India comes out to be the most preferred banking alternative in the market, while Punjab National Bank and ICICI Bank are few other public and private banking entity which are preferred across India.
Talking about SBI, its saving accounts manual contains 2 accounts, one is saving account and second one is saving plus account. Both the accounts differ in their operations as the first one is used by the people for their future financial necessities, while the latter provides the benefits of saving account along with term deposit account.
When clients get their savings account opened with bank they receive a detailed monthly statement and also get access code to electronic fund transfer functionality. This help the clients to utilize several services such as Online bank balance checking, withdrawals and deposits of an individual's account quite an easy job. Money transfer functionality has excellently served countless individuals by transporting cash from one account to other account in any branch of any banking entity around the world. This has made things a lot easier for businessmen, students and people from various walks of life.
Thursday, November 5, 2009
Trendlines And Containment Patterns In Forex
One of the most beneficial tools to a technical currency trader is to use trend lines on the price chart to create trading channels and containment patterns, because these are future price projections that can be used in a predictive manner with a relative amount of success. Anyone who wants to be (or has already become) a successful trader knows that market analysis in a retrospective form might sound better when it is given in the form of a daily market update from a bank or trading institution, but it does not do you any good to only know where the prices have been; you need to know where they are headed in the future, where you should enter the market, and in what direction.
One of the key principles of drawing a reliable trend line on your price chart is that the price must touch the line at least three times in order to validate the strength of the trend. If the price touches only two times then this is not enough to establish a strong price trend, and the more times that the price touches the trend line and continues moving in the upwards or downwards direction then the stronger and more valid this trend line becomes. Something that is more powerful than just using a single trend line is to identify two trend lines both above and below the active price data, which will effectively create a trading channel that can signal to you if the trend is still going strong or if it is time for a trend reversal.
Creating a containment pattern on your chart can set you up to successfully execute a profitable short-term trade without the need for a trend reversal, because a containment pattern can represent the retracement of the market within the continuing scope of the larger trend. In the broadest sense, a trading channel actually is a containment pattern itself because it represents a future projection of the levels that the actual market price should fluctuate between, but this in itself might not yield any relevant market entry or exit signals. A retracement containment pattern however, where a line is drawn in the opposite direction of the overall trend based on the market retracement within the actual trading channel, can show you exactly when you should place your buy or sell order.
If you use a retracement containment pattern to determine your market entry point (where you enter the market when the actual price breaks through the retracement line), then you can use this in conjunction with a momentum indicator to determine your exit point. If you are trading in an uptrend where you enter the market at the bottom of a retracement point where the market is likely to go back up to the top of the trading channel, you can use the momentum indicator to find the right exit point where the overbought market pressure starts to reverse, since there is always the chance that the market will not actually make it all the way back to the top of the trend line channel.
One of the key principles of drawing a reliable trend line on your price chart is that the price must touch the line at least three times in order to validate the strength of the trend. If the price touches only two times then this is not enough to establish a strong price trend, and the more times that the price touches the trend line and continues moving in the upwards or downwards direction then the stronger and more valid this trend line becomes. Something that is more powerful than just using a single trend line is to identify two trend lines both above and below the active price data, which will effectively create a trading channel that can signal to you if the trend is still going strong or if it is time for a trend reversal.
Creating a containment pattern on your chart can set you up to successfully execute a profitable short-term trade without the need for a trend reversal, because a containment pattern can represent the retracement of the market within the continuing scope of the larger trend. In the broadest sense, a trading channel actually is a containment pattern itself because it represents a future projection of the levels that the actual market price should fluctuate between, but this in itself might not yield any relevant market entry or exit signals. A retracement containment pattern however, where a line is drawn in the opposite direction of the overall trend based on the market retracement within the actual trading channel, can show you exactly when you should place your buy or sell order.
If you use a retracement containment pattern to determine your market entry point (where you enter the market when the actual price breaks through the retracement line), then you can use this in conjunction with a momentum indicator to determine your exit point. If you are trading in an uptrend where you enter the market at the bottom of a retracement point where the market is likely to go back up to the top of the trading channel, you can use the momentum indicator to find the right exit point where the overbought market pressure starts to reverse, since there is always the chance that the market will not actually make it all the way back to the top of the trend line channel.
Wednesday, November 4, 2009
Debt Settlement - Helpful or Harmful?
Debt settlement is a method used to negotiate and reduce debts. It is generally considered a better alternative than bankruptcy but still it is a forceful method.
Debt settlement is generally done in cases where the borrower is facing extreme financial difficulties, where bankruptcy is very likely. A debt settlement firm helps the borrower negotiate with creditors to settle the debt for a lower amount than the borrowed amount and pays a lump sum amount to settle the debt.
Most third party debt settlement companies charge fees and it is not always apparent how much they charge so beware and read the agreement entirely and watch for hidden fees. However, you don't need to hire a professional to do this for you. Debt settlement has become so common and popular that many of the major credit card companies will offer settlements in order to cut their losses. Some settlements have been as high as 50% of the outstanding debt but the average is less than that. Using the do it yourself approach requires that you learn how to negotiate.
If you don't settle after a few months of delinquency, your account may be turned over to a collection agency or you could be sued by the creditor. A judgment resulting from a lawsuit will appear on your credit report and could stay there as long as 10 years. Debt settlement will not appear on your credit report. However, if you are already delinquent on your payments, then your credit may already be impaired.
The lenders agree to settle for a lower amount because if the borrower is unable to pay the loan, and declares bankruptcy, then the lender is at a greater risk of losing a larger amount of debt owned. However if the borrower does not show financial difficulties the lender might refuse to settle the debt in this manner and even take legal action against the borrower.
While debt settlement does get recorded on your credit report, it is usually considered less damaging to your credit than bankruptcy. The debt consolidation and debt settlement organizations might assist you in relieving you of but they cannot free you from debt completely.
Whether a borrower decides to settle dues directly with lenders or through professional debt settlement firms they will have to set aside a certain sum of money to build up a settlement fund. The settlement company will require a limited power of attorney to act on behalf of the borrower and negotiate with the lenders.
After collecting a certain amount of money the borrower will negotiate with the lender to agree with the reduced payment amount. Once the lender agrees to the settlement amount the payment is arranged for making a full and final settlement.
Monthly payments can be made into the settlement fund to pay off the debt amount agreed upon. The lender then sends a letter to the borrower and the credit bureaus stating that the amount has been settled for less than the agreed amount.
There are a few disadvantages. You must consider your credit report and tax consequences of debt settlement.
Debt settlement is generally done in cases where the borrower is facing extreme financial difficulties, where bankruptcy is very likely. A debt settlement firm helps the borrower negotiate with creditors to settle the debt for a lower amount than the borrowed amount and pays a lump sum amount to settle the debt.
Most third party debt settlement companies charge fees and it is not always apparent how much they charge so beware and read the agreement entirely and watch for hidden fees. However, you don't need to hire a professional to do this for you. Debt settlement has become so common and popular that many of the major credit card companies will offer settlements in order to cut their losses. Some settlements have been as high as 50% of the outstanding debt but the average is less than that. Using the do it yourself approach requires that you learn how to negotiate.
If you don't settle after a few months of delinquency, your account may be turned over to a collection agency or you could be sued by the creditor. A judgment resulting from a lawsuit will appear on your credit report and could stay there as long as 10 years. Debt settlement will not appear on your credit report. However, if you are already delinquent on your payments, then your credit may already be impaired.
The lenders agree to settle for a lower amount because if the borrower is unable to pay the loan, and declares bankruptcy, then the lender is at a greater risk of losing a larger amount of debt owned. However if the borrower does not show financial difficulties the lender might refuse to settle the debt in this manner and even take legal action against the borrower.
While debt settlement does get recorded on your credit report, it is usually considered less damaging to your credit than bankruptcy. The debt consolidation and debt settlement organizations might assist you in relieving you of but they cannot free you from debt completely.
Whether a borrower decides to settle dues directly with lenders or through professional debt settlement firms they will have to set aside a certain sum of money to build up a settlement fund. The settlement company will require a limited power of attorney to act on behalf of the borrower and negotiate with the lenders.
After collecting a certain amount of money the borrower will negotiate with the lender to agree with the reduced payment amount. Once the lender agrees to the settlement amount the payment is arranged for making a full and final settlement.
Monthly payments can be made into the settlement fund to pay off the debt amount agreed upon. The lender then sends a letter to the borrower and the credit bureaus stating that the amount has been settled for less than the agreed amount.
There are a few disadvantages. You must consider your credit report and tax consequences of debt settlement.
Tuesday, November 3, 2009
How to Get a Credit Card with Bad Credit
If you're struggling with credit card debt, you're not alone. At the end of 2008, the total amount of credit card debt that Americans held reached $972.73 billion, according to the Nilson Report released in April 2009. And the average outstanding credit card debt for households was $8,329.
The good news, of course, is that many Americans are working hard to pay off their credit card debt. If you have had credit problems in the past, now is a great time to start turning things around. You'll not only reduce your debt, you'll end up with a better credit standing in the eyes of lenders.
If you want to know how to get a credit card with bad credit, read on. These guidelines will help you get the right card. They'll also show you how to develop better financial habits. Here's what to do:
Check your Options
Getting a card when you have a low score can seem like an impossible task. You want credit in order to work on rebuilding your score, but lenders are hesitant to give people with a low score a loan or card. This then turns into a vicious cycle.
Lenders have recognized this problem and created options for those with bad credit. One of the most popular of these choices is the bad credit credit card. This option is appealing because it is available to nearly everyone, regardless of their score or history.
A quick online search will show you a variety of these cards. Many websites even have a separate section for bad credit credit cards. Click on them, and then read through the terms and conditions attached. This may be your best option if you want access to more credit quickly.
Change your Spending Habits
It's not enough to get a new credit card; you'll want to create new habits to really get ahead. Start by paying off any debt that you currently carry. Then avoid frivolously charging items to the card. Use it only when you know you'll be able to pay off the balance right away.
You'll also want to get a better grasp of your finances in general. Pay all of your bills on time, each month. Spend wisely and you'll be able to live within your means.
Turning your financial situation around can take time and effort, but it is not impossible. If it feels overwhelming, consider talking to a financial savvy friend or family member for extra support. They can offer advice and cheer you on as you make the steps toward a better financial standing.
Focus on the Future
Once you have your new habits in place, it will be time to think about the future. Consider the financial goals you want to meet in the next five or ten years. Perhaps you want to build up a retirement fund, put more money in savings, or get a different credit card. When you know what you want, write it down. Then break it down so that you can take small steps toward it each month. Over time, you'll be able to turn those financial goals into a reality. By then, you'll have your bad credit behind you and will be on your way to a better, brighter credit future.
The good news, of course, is that many Americans are working hard to pay off their credit card debt. If you have had credit problems in the past, now is a great time to start turning things around. You'll not only reduce your debt, you'll end up with a better credit standing in the eyes of lenders.
If you want to know how to get a credit card with bad credit, read on. These guidelines will help you get the right card. They'll also show you how to develop better financial habits. Here's what to do:
Check your Options
Getting a card when you have a low score can seem like an impossible task. You want credit in order to work on rebuilding your score, but lenders are hesitant to give people with a low score a loan or card. This then turns into a vicious cycle.
Lenders have recognized this problem and created options for those with bad credit. One of the most popular of these choices is the bad credit credit card. This option is appealing because it is available to nearly everyone, regardless of their score or history.
A quick online search will show you a variety of these cards. Many websites even have a separate section for bad credit credit cards. Click on them, and then read through the terms and conditions attached. This may be your best option if you want access to more credit quickly.
Change your Spending Habits
It's not enough to get a new credit card; you'll want to create new habits to really get ahead. Start by paying off any debt that you currently carry. Then avoid frivolously charging items to the card. Use it only when you know you'll be able to pay off the balance right away.
You'll also want to get a better grasp of your finances in general. Pay all of your bills on time, each month. Spend wisely and you'll be able to live within your means.
Turning your financial situation around can take time and effort, but it is not impossible. If it feels overwhelming, consider talking to a financial savvy friend or family member for extra support. They can offer advice and cheer you on as you make the steps toward a better financial standing.
Focus on the Future
Once you have your new habits in place, it will be time to think about the future. Consider the financial goals you want to meet in the next five or ten years. Perhaps you want to build up a retirement fund, put more money in savings, or get a different credit card. When you know what you want, write it down. Then break it down so that you can take small steps toward it each month. Over time, you'll be able to turn those financial goals into a reality. By then, you'll have your bad credit behind you and will be on your way to a better, brighter credit future.
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