Archive for Economy + Finance
11.27.08
Posted in Economy + Finance, Investment Infos at 8:31 am by admin
Are you aware of the Child Trust Fund and its benefits? remarkably few appear to know about the fact that all newborn children are given a free £250 voucher from the government to place in a Child Trust Fund. The voucher can be invested in any one of three types of CTF account, Stakeholder - a shares-based account thatswaps into cash, a savings account or a shares account. It is a great opportunity to invest for the future needs of a youngster
Scottish Friendly is a licensed provider of the Child Trust Fund The Government is eager for the public at large to have access to Stakeholder accounts and this is the sort of account that we provide. This means that:
Investments are sent into Scottish Friendly’s Managed Growth Fund, which seeks to provide good growth potential
An investment is made partly in shares to make the most of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can
fall as well as go up whereas capital would be protected in a deposit account)
It is available with a low ‘Stakeholder’ funds charge of only 1.5 percent perannum
At age 18 the child will get a lump sum, wholly free of Capital Gains and Income Tax under prevailing legislation
It is affordable - extra payments can be placed in the account from only £10
One of the highlights of the Child Trust Fund is that anyone - parents, grandparents, aunts and uncles, friends - may give to the Fund to an uppermost limit of £1,200 per year to help augment the child’s Fund (once added, this money is not able to be withdrawn).
All this means our Stakeholder account provides a good balance between potentially high returns and a reduced level of risk. There is also the additional assurance that our account is in accordance with with the Government’s stakeholder criteria. Nonetheless this doesn’t mean that returns are assured or that Stakeholder accounts are suitable for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is placed) can go down as well as increase and is not guaranteed.
Only children whose birthday is on or after 1st September 2002 are qualified to open a Child Trust Fund. If you have older kids born before the 1st of September 2002 who are not qualified you could consider investing for them with a Child Bond - it’s a tax-free savings plan intended for long-term growth.
It is evident that saving for your daughter is a sound means of preparing for the world to come.
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11.16.08
Posted in Credit Issues, Economy + Finance, Online Loans at 3:40 pm by admin
Check up to see if the moneylender who is willing to give you a loan is estimable. 10.8 percent rate may appear so middling but will it stay unvarying after you’re going to return your bank loan. At present you can look into rates of interest quickly at websites and watch if there are possible sneaky traps you should be aware of.
Translated in Dutch it means: Woon je in Laarbeek of Veenendaal en heb je BKR codering. Lenen met zonder BKR is nog nooit zo gemakkelijk geweest. Verwen jezelf met een andere auto met zonder bkr lenen, 370752 euro is gewoon mogelijk om te financieren. Van Eemsmond tot Mook en Middelaar, financieren met zonder BKR is altijd mogelijk.
That’s the reason why now you really need to check into and pick up if you can have a money loan at a serious percent interest rate. You should be voguish today to check out if you have a bargain or if you don’t with the bank that offers you a bank loan. A lot of the banks wil show you a loan rate that looks just but feels gravely or so after a period of time. It makes no difference if you live in Niagara Falls New York or in Milwaukee Wisconsin a proficient online inspection will often . A merchant bank in Fort Collins South Carolina or so may have a total different actual rate of interest for a 27500 dollar money loan then a moneylender in Beverly Massachusetts and that makes a immense clear difference in your yearly pay offs.
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09.13.08
Posted in Economy + Finance at 11:49 pm by admin
When you get to your retirement period you do not have to pull out your retirement fund then and there. Instead, you could well make a decision to postpone acquiring an annuity until the mature old age of seventy-five years old & if you do so you may perhaps find you will get a superior offer. It’s referred to as income drawdown.
When you are aged between fifty years old and seventy-five you are automatically allowed to postpone the control of your retirement fund from one of a number of insurance companies. Instead, you are able to remove up to one-hundred-and-twenty percent of the pension that could have been originally obtained by means of the Government Actuary rates, leaving the remaining capital invested until you demand it. On your side, all you should do is to make sure you pay for an annuity by the instance you are seventy-five.
But, what would happen if you were to take the income draw down selection, and then died? If this did occur then your current partner or those legally responsible would then have 3 options: either to receive a lump sum, following tax at 35%, or otherwise keep on going with income withdrawal, or paying for an annuity pension with the financial investments. Your surviving partner has until they reach sixty to delay the ownership of an annuity, but no benefits are permitted to be offered in the interim period.
Why opt for income draw down? Well in the main because it might end in you earning a more worthwhile settlement from your pension by doing so. Secondly, you are able to pick precisely when you get the annuity, so if you leave work at an instance when annuity rates are very low, waiting could be a clever option. If the residual stocks rise as anticipated, then jointly with the truth that the annuity rates improve with age, you might finally be able to buy an improved pension than you probably would have got in the beginning. To find all the latest info on Income Draw Down, go to today to the First Place Financial website!
Moreover, it also means that when you depart this world your significant other or those legally responsible are looked after financially, since they are officially entitled to the remaining stocks, as stated above.
Like all investments, there are hazards involved though. If venture performance on the remaining stocks & shares is poor, then the extent of retirement income provided can plummet. And it is important to remember that there’s no assurance that the pension purchased will finally be bigger than the entire amount that could have been purchased at the start.
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05.26.08
Posted in Economy + Finance at 12:24 am by admin
CHECK BACK FOR UPDATED INFORMATION AS NEW INFORMATION IS
UNAVAILABLE AT THIS WRITING BUT IS COMING SOON
Now is the best time to start thinking about your year end tax
planning for your business. These tax strategies can be put into
effect by the end of the year and some as late as when the tax
return is due. Planning now will save you money and reduce your
tax liability not only with your IRS taxes but also with your
state taxes. Here are tax tips that will help you accomplish
your goal.
DEFER YOUR INCOME INTO 2006
If you don’t receive payment until the first week of January for
cash basis tax returns and don’t bill until January for accrual
basis tax returns, you have effectively deferred your income.
This works well if your 2006 income is equal to or less than it
was for 2005. If not, you are delaying the inevitable and
potentially putting yourself in a higher tax bracket for 2006.
ACCELERATE DEDUCTIBLE EXPENSE INTO 2005
Anything charged on your business credit card December 31st and
prior is deductible in 2005 even if it is paid in 2006. You can
also write a check on December 31st that you would have normally
paid in January. You may want to get a confirmation receipt to
prove you mailed those checks in 2005. This works well if your
2006 income is equal to or less than it was for 2005. If not,
you are delaying the inevitable and potentially putting yourself
in a higher tax bracket for 2006.
OPEN A RETIREMENT PLAN ACCOUNT
See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm
for an example of what you can do with that available profit tax
deferred until retirement. This is a fantastic option for those
who have the cash and want to contribute money into their
personal retirement account and deduct that contribution from
their corporate earnings. Does it get any better than that?
BUY EQUIPMENT AND SOFTWARE BEFORE YEAR END
You can deduct up to $102,000 (2004 maximum) in equipment and
software purchases for the year under Section 179 depreciation
expense. This includes sport utility vehicles, pickups and vans
with a gross vehicle weight rating over 6,000 pounds. However,
businesses should be aware of the change due to the American
Jobs Creation Act of 2004. Certain sport utility vehicles
(SUV’s) are limited to $25,000 if they were placed in service
after October 22, 2004.
GET ORGANIZED
If you haven’t already done your accounting and reconciled it to
your bank statement, you have some catching up to do. Knowing
where you are at financially is the true measure of your
performance. It allows you to make better business decisions and
to be more successful financially.
TAX PLANNING FOR INDIVIDUALS
Go to www.dgoodmancpa.com/yearendtaxplanningindividuals.htm for
what you can do to prepare your business for year end.
These are just some tax tips you should consider when thinking
about your year end tax planning for your business. If you have
a specific question about your particular situation, e-mail me
at dianne@dgoodmancpa.com and I will help you work through the
tax planning issues you may have.
This article was intended to provide general information about
year end tax planning. It does not contain all the rules and
exceptions that may apply to your situation. If you have further
questions regarding year end tax planning, I can be reached at
www.dgoodmancpa.com.
You have permission to reprint what you just read. Use it in
your ezine, at your website or in your newsletter. The only
requirement is to include the following footer… 2005 Year End
Tax Planning and Preparation for Businesses - Tax Tips for 2005
by Dianne Goodman, visit http://www.dgoodmancpa.com for more
content like this.
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05.25.08
Posted in Economy + Finance at 3:39 am by admin
If you have followed these energy updates over the last few days you will have seen our analysis that got us in at the bottom of the channel and has produced great gains.
Unleaded gas has moved to the top of the channel and crude has also moved higher at a slower rate.
The question now in unleaded gas is:
Are we set for new highs or is a pullback on the cards?
The factor under pinning prices is the geo political situation with Iran who increased the stakes with veiled threats to use oil as a weapon against intervention in its nuclear program.
Keep in mind, these markets are driven by emotion at this moment and it’s hard to call which way they will go.
So let’s take a detached view and look at the charts
Unleaded Gas
Has led the advance in energies and prices are testing the top of the recent channel, but failed to breakout to new highs. A break above resistance will see another leg up.
At present stochastic support and momentum is still to the upside. We would use these as profit taking signal if they cross tomorrow with bearish divergence and bank the profit.
Buy again on clear break of the highs. This means there will be profit in the bank, near the highs and buying on the breakout would get positions back in the market.
Alternatively, traders can target a dip to the mid Bollinger band and wait for prices to find support.
These markets remain in a firm up trend and don’t look to be falling to far so to keep your focus on the trend which remains firmly up.
Crude Oil
Again, use stochastic indicator to take profit or a close below the mid Bollinger band.
Natural Gas
We are extremely bullish of this market but the recent buy recommendation was not filled as prices have plunged and are new nearby lows.
We will look for a bottom to form and use stochastic momentum to get in again.
For now though all trends are down so don’t pick a bottom - wait.
Longer term this looks like it could become a great bull market but for now were wrong and need to wait for prices to support our view.
Finally
Energies are extremely volatile and crude and unleaded are driven by trader psychology the strategy above should enable traders to bank profit if necessary and also get another bite if prices breakout to the upside or dip to nearby support.
The recommendations in unleaded gas and crude were in right at the bottom of the channel and these have produced great gains. The above should allow you to get some profit regardless of where the markets go and opportunities to get in again if you exit or are waiting on the sidelines.
More FREE info
For more strategies and tips on trading global energies markets and to recieve FREE Energy alerts and a free trader CD visit http://www.wellingtoncr.com
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05.14.08
Posted in Economy + Finance at 12:18 pm by admin
The world has got so many cultures and colours. It has so much
to offer. However, it is not possible to know it through a
magazine, internet, or through your television. To see the world
in its true colour and shades, you need to travel extensively.
And, going for a holiday would be the best way to do it. But,
Alas! Most of our pockets can’t afford to pay for an expensive
affair like holidays. Adding to it, you don’t have the required
savings to pay for your holiday. So, you are disheartened!
Aren’t you! But, you don’t have to be!
There are Holiday Loans which are specifically packaged
to meet your holiday expenses. Holiday Loans are made easy and
undoubtedly adjustable to the need of every loan borrower.
Holiday Loans can be both secured as well as unsecured. A
Secured Holiday Loan requires collateral, whereas an Unsecured
Holiday Loans are offered without any collateral. It has been
observed by the experts that the increasing rates of property
repossession by the lenders have made Unsecured Holiday Loans a
much preferred option than Secured Holiday Loans. Unlike Secured
Holiday Loans, in Unsecured Holiday Loans borrowers are not
required to offer any collateral against the loan. An Unsecured
Holiday Loan will help you to go to the place, you have always
in mind.
An Unsecured Holiday Loan is generally
short term in nature. Holiday loans amount start from as low as
£3000 and go as high as £25,000. Holiday Loans usages are not
restricted for holiday purposes only. You can make use of an
Unsecured Holiday Loans for reasons, other than holidays also.
Unsecured Holiday Loans are highly available and easy to
venture. In this wide web world there is a specially crafted
loan for every requirement and every person. You can access an
Unsecured
Personal Loan, even if you have a bad credit history. Yes,
you heard it right! Your not having a good credit history
doesn’t restrict you from availing Unsecured Holiday Loans. You
can visit your dream place with an Unsecured Holiday Loan, even
if you have a bad credit history.
However, like any other type of loan, an Unsecured Holiday Loan
has also got its own share of pitfalls. The major one being, the
rate of interest charged in an Unsecured Holiday Loan is
comparatively higher than secured ones.
When applying for an Unsecured Loan, make sure that you are
settling for the best deal. Compare rates and terms of various
lenders. The comparison will help you avail the Unsecured
Holiday Loan that speaks to your requirements and circumstances.
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05.13.08
Posted in Economy + Finance at 11:36 pm by admin
Trying to be environmentally friendly is something that is going to concern us all in the next eight years. We have Environmental Travel, Electric Driven Automobiles and Biological Fuels to look at now. Find out why electric cars are so good for the environment, Click Here.
There are many several forms of Bio Fuels. Bio Fuels are basically plant based alternatives to oil- based fuels such as petroleum, diesel and heating oil. Using biodiesel emits C02, however, this is counteracted through the fact that the crops used to create it uses CO2 emissions in the atmosphere to develop. In spite of this the climate gains of Bio Diesels are hotly talked about, with some green specialists declaring that Bio Fuels cause more harm than good. There are many 2 prime breeds of Bio Diesel & Ethanol.
As the brand implies, biodiesel is planned for use in diesel vans. It is truly similar to vegetable oil & is manufactured from the similar kinds of plants- oil rich sources such as sun flower, palm, rapeseed and groundnut. Biological Diesel might often also be generated from cow fat or oils recycled from American cuisine restaurants. Biodiesel will probably be used neat in some diesel automobiles, but at present Biodiesel is much more frequently found in a mixture with regular diesel- regularly ten % biodiesel with regular diesel fuel. This recipe will often be used by any diesel engine.
Ever thought about getting an electric car? There is 2 forms the G WIZ and the Mega City. All of these are genuinely environmentally friendly transport machines; in fact Bio Diesels cars is an environmental dream. The electric cars do not generate any C02 emissions in fact more to the point electric cars don’t even have an emission pipe. Because you power a environmentally friendly car from renewable energy, it creates 0 CO2. Although this eco car has countless pros it does have quite a few cons as well. The obvious being it is an eco friendly car and it will probably only do ninety miles before you may have to top up the car batteries and this generally has to be finished over the course of the night, if you’re arranging on doing an extended outing, this may have to be powered up over the course of several excursions.
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05.12.08
Posted in Economy + Finance at 12:12 am by admin
Stock market is full danger. It is not to be taken casually.
First one needs to understand is different types of orders : market order, limit
order, stop order and stop-limit order. Market orders are most simple. Whenever one enters a market order to buy or sell a stock it is executed immediately and one gets to buy or sell the stock at the market price at that moment.
(The following paragraph is taken from another article of mine)
However,
in the beginning when I first started trading it felt like market orders are orders such that when I buy a stock, it immediately goes down. Then what is a limit order? It is an order to buy or sell stocks where one can specify a price. This sounds well and good, but actually what happens is the following: one either puts an order to buy at a price so low that the order never gets filled, or if one puts a reasonable price, it gets filled but when one check one’s account, the stock is trading at least five points below. More on the limit orders later. But let us undestand the third type of orders : stop order.
What about stop orders? It is an order one is supposed to use to lock in profit. Sounds wonderful! Here is how it works. Let’s say you bought a stock at $40 a share, and now it is trading at $50 a share. So you put a stop order to sell at $45. And you are happy that you will at least make $5 a share profit for this one. Well, one day the stock opens at $35, reacting to some bad news. Your order gets immediately filled. Later in the day, however, one institutional buyer, some hotshot fund manager of Janus super growth fund family, comes in, and the stock closes at $47, down only $3 for the day. So in stead of making $10/share profit, you are left with a humiliating loss of $5/share. So one can see putting a market order is uncertain, limit orders difficult to execute, and stop orders are completely beyond your control.
Importance of Stop Order
Even though all kinds of orders have drawbacks, one needs to undestand the importance of stop order at the very beginning. As described above, it is order
to protect profit and also to cut losses. To understand the stop orders, let us
look at where stock is on nice uptrend and you have bought at the point specified. It looks like you are climbing a mountain, right? Only difference is unlike mountain climbing, you are not having any control on the stock price now.
Only thing you can do is wait and watch. If other traders buy this stock, the price will keep rising. If, on the other hand, others decide to sell the price will go down. Unlike in mountain climbing, you do not know what lies before you.
Do you want to be in that situation? What is the solution? That support level is your stop price. Never ever enter a trade without a stop order. But this is the mistake most traders make in the beginning, including myself. If it feels like burden to you then think of why you wear seat-belt in a car or pay hefty premium to insure your home. In
the first example do you regret if you did not have accident so the seat-belt
did not prove to be useful. In the second case, are you unhappy your home was not
destroyed by fire or flood so you could not use the insurance?
There is another aspect to protecting your capital. As you loose your capital, it becomes harder to recover from the loss. For example, you start with 1 lakh
rupees. If you loose 10%, you are left with Rs 90,000. Now from this point, you
have to gain 11% to get back to your original value. Similary, if you loose 25%
(you now have Rs 75,000), you have to gain 33% to recover all your losses. If
you loose 50%, you have to gain now 100% to recover all your losses. If
you loose …. well let us not get that depressing. You got the idea.
Temptation of Limit Orders
In the beginning, everybody want to use limits order to buy and sell stock. This
is because it allows one to buy at a lower price and sell at higher price. Some
people are attracted by the daily fluctuation of a stock and think as if they
can make money by trading by limit orders. One may get lucky a few times, but
if anyone think this can done consistently to make money one is dreaming a fools
dream. If you think you can stock price movement each day, you might as well think you can predict lottery numbers or outcome of any elections. Don’t they all look familiar after the result are out? I would not dig deeper into the lottery case, but in the election scenerio, remember Bush-Al Gore, or Cong vs BJP last time, or Cong vs BJP in 2000? I can go on, but you get the idea.
Is it market top or bottom?
It is also very important to identify market tops and bottoms. Novice investors
always get lured into market top and forced to sell at market bottoms. How is this possible? The end of see-saw is way
up and there so many people cheering. Now is the time to go down. In wall st lingo (Dallal st for India) there are too many bulls. So there are not many
people left to buy stocks and stock price rises if there are more buyers.
Similarly, at
the bottom there is nobody around (because everyone is scared to own stocks). It is time for the market to make a move up.
Some people may not agree with this explanation of market’s movement. But see-saw nature of the stock market can not be emphasized enough. Market is always
going from up days to down days, from bull market to bear market, from being
overbought to oversold, from euphoria to doom and gloom, and most importantly, from insatiable greed to extreme fear.
I may have become little philosophical. Coming back to cold hard reality, it is very
important to understand the market top and bottoms.
Common investors, however, should not try to catch a market bottom. It is a very
dangerous thing to do so. There is no way one can always catch a market bottom successfully. One should wait when the market stabilized enough to enter.
However, one should always be wary of market tops to take profit or
be careful enough not to get into it.
Silver Lining
If this all sounds very depressing to you, then consider these stories.
— George Soros : Immigrant from Hungary. He is the world’s most famous currency trader. He became a billionaire by shorting the
british pound. He is often blamed for crashing the bank of England!!
— Warren Buffet : World’s second richest man! Became wealthy by investing in
Coca Colla, Gillette, Citibank, etc and holding them for more than 30 years! He
bought shares of Coca Colla and Citibank when traders dumped those stocks for junk. He never bought a single share of technology company, not even Microsoft.
— John Templeton : Arguably the greatest global stock picker of the century by Money Magazine (Jan. 1999) also made his fortune by picking stocks
at very low price. Founder of Templeton family of mutual funds.
— William O’Neal : Founding editor of Investor’s business daily. Made millions
from stock market before starting his newspaper. He also authored several best
selling books on investing.
— Jesse Livermore : A remarkable character in investing. He made and lost millions of dollars many time over. A very thinly disguised biography of this
person named ‘Reminiscences of a Stock Operator’ is an all time best seller in the investment literature.
— Nicolas Darvas : He made $2,000,000 from merely $10,000.00 in just eighteen months. How he did that is recorded in his best selling book ‘How I Made 2,000,000 in the Stock Market’.
— Bernard Baruch : From $5 a week wall st job, he rose to managing multi-million dollar portfolio. Later became a statesman and presidential advisor.
So are you ready to make your million from the stock market? Start trading, but
on paper first. Also do not forget to do your homeworks.
Copyright © 2005 Gautam Dev. All rights reserved
I am a software engineer and occasional writer.
If you like this article please send me a feedback to gdind2003@gmail.com.
If you would like, you can also visit my home page, http://www.stock-article.com/.
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05.06.08
Posted in Economy + Finance at 11:56 am by admin
Most consumers are aware that negative items on their credit report can be disputed with the three major credit reporting bureaus. Often, this process can lead to a significant improvement in credit score through deletion of the damaging items that were lowering the score.
However, to achieve excellent credit, it’s not enough to just remove negative entries. Why? Because a lack of positive payment history is also an obstacle to having good credit. You need to demonstrate a record of on-time payments in order to raise your credit score.
In this article I will describe two simple techniques for rapidly ADDING good credit entries to your file.
THE CO-SIGNER TECHNIQUE
All that is necessary to add years of excellent credit history is the love and trust of a friend or family member who has good credit.
Credit card companies are always willing to have their best customers add extra cards for family members. By adding your name to one or more of their accounts, they will actually cause a new credit card to be issued in your name. The “catch” is that they will be the co-signer on the account, meaning that they are responsible if you miss payments.
Of course, you never want to risk the credit rating of a friend or family member, so simply have them use their own address on the application for the extra card. That way, the card will be mailed to them, and even though it has your name on it, the card will remain in their possession. They can even cut it up if they want to.
The simple beauty of this approach is that the new card will show up on your credit report, and normally it will show the opening date of the original card (not just the application date for the extra card), as well as the entire credit history of that card! It’s like getting years of good credit added to your file with the stroke of a pen.
THE PASSBOOK SAVINGS LOAN TECHNIQUE
The “Passbook Savings Loan Technique” is a great way to add positive payment history to your credit file. It will also give you an excellent credit reference to use for most types of financial applications. This technique does require some cash - at least $500 to $1,000. However, this amount will be held in a savings account as loan collateral, and the total out-of-pocket cost to complete this technique should be well under $50.
Here is the Passbook Savings Loan Technique in detail, so you can see exactly how everything works.
STEP 1 - Locate a Small Bank that Meets Your Requirements
I recommend that you work with smaller community banks and not the major chains. The smaller banks are more likely to have the exact type of account that you will need to open, and they are more likely to work with you and be flexible. Savings & Loan institutions and Credit Unions can also be used, provided they meet the requirements. The product you want is called the “Passbook Savings Account,” which is basically just a simple savings account. And the type of loan you will take out is a “Passbook Savings Loan.” This is the easiest type of loan to get because it is totally secured with your own cash. Most banks are only willing to loan you 85% of the amount you have on deposit, so there is always some reserve money in the account.
Your target bank will be suitable for this method if it meets the following three requirements:
A. The bank must have a Passbook Savings Account product with NO MONTHLY FEE on balances of $500 to $1,000.
B. You must be able to borrow up to 85% of your balance on a 12-month loan schedule. This is typically called a Passbook Savings Loan.
C. CRITICAL: The bank MUST report activity on this account to the three major credit bureaus (Experian, TransUnion, and Equifax).
If the bank product does not meet these requirements, then do NOT use that bank. There are thousands of small banking institutions throughout the country, so it should be fairly easy for you to find an appropriate one in your local area.
STEP 2 - Open a Passbook Savings Account
Go to the bank you’ve chosen and open a Passbook Savings Account for $1,000 or less—depending on what you have to work with. Take your Passbook home and wait a week or so, because you don’t want it to look like you opened the account only for the purpose of taking the loan.
STEP 3 - Obtain a Passbook Savings Loan
Return to the bank and ask to see a loan officer. Look your best, be courteous, and explain that you wish to take out a Passbook Savings Loan for $850 (or 85% of whatever amount you actually deposited).
When you take out your loan, your savings account is frozen. However, every time you make a payment you unfreeze an amount equal to your payment, less a few dollars for interest. Be sure to ask that the loan term be for at least one year, with minimum monthly payments. Do not get a simple one-year loan with no payments. This will not benefit you at all, because you are trying to establish a history of payments.
You will not be turned down for this type of loan no matter what your previous credit history and in most cases it will not even be checked. If you have bad credit, make sure you tell your loan officer before he or she pulls your credit history. Tell the bank representative you are trying to re-establish your credit and that a good credit rating is very important to you now.
STEP 4 - Make Your Payments
Assuming an interest rate cost of 6%, your monthly payments on the $850 loan will be $73.16. (Remember, this is a secured loan, so the interest rate should be fairly low.) Since you have “borrowed” $850 in cash, you will use that money to keep the payments going on the loan. Be sure to make your payments well before the due dates. Always pay EARLY in order to be on the safe side in establishing good payment history.
STEP 5 - Pay Off the Loan Early
After six months, pay off the loan early. At this point, you will have approximately $980 remaining from your original $1,000 deposit, part of it as cash on-hand, and some remaining in the savings account. You will have paid a whopping $20.31 in interest (assuming the rate was 6% for the secured loan). I’m sure you will agree that $20 is a small price to pay for adding six months’ worth of good payment history to your credit report!
STEP 6 - Make Sure the Loan Shows on Your Credit Report
After you have paid off the loan, obtain fresh copies of your credit reports to verify that the loan payment history is showing correctly. Since you selected a bank that reports regularly to the big three credit bureaus, everything should show up correctly. But mistakes do happen. If the loan is not reported correctly, ask the bank directly to fix the omission or ask the credit bureaus in writing to add the credit reference to your report.
The Passbook Savings Loan Technique is a simplified version of the more complicated “Three Bank Technique.” Basically, the concept is to use the secured loan proceeds from one bank to open up another account at a second bank, and then to repeat the process for a third bank. The math is a lot more complicated, but the principle is the same, with the added benefit of having three simultaneous loans adding positive payment history to your credit report. This approach costs a little more in interest expenses, and involves a lot more work, but can really turbo-charge your positive credit history.
Charles J. Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former senior executive with one of the nation’s largest debt settlement firms, he is the author of the Debt Elimination Success Seminar, a five-hour audio-CD course that teaches consumers how to choose between debt program options based on their financial situation. The course focuses on comprehensive instruction in do-it-yourself debt negotiation & settlement designed to save $1,000s. Personal coaching and follow-up support is included. Achieves the same results as professional firms for a tiny fraction of the cost. Visit www.zipdebt.com for more information.
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05.04.08
Posted in Economy + Finance at 1:34 pm by admin
For people who work with a tight monthly budget, even the
smallest financial emergencies can seem like full-blown
disasters. It’s hard to pay for an unexpected increase in
utility bills or for unforeseen home repairs - especially if you
live from paycheck to paycheck. To make ends meet, you may need
to apply for a cash advance loan. This is a common solution,
since most banks and other financial institutions grant these
types of loans. A cash advance can make things easier for you if
you know what you’re getting into.
Here are 3 important things you need to know while applying for
a cash advance loan:
Know what a cash advance loan is
A cash advance is a short-term loan ranging from $100.00 -
$1000.00. The loaned amount depends on your paycheck - the
larger your paycheck, the larger your possible loan amount.
Because of its nature, this type of loan cannot be used for big
purchases such as cars or large-scale home improvement projects.
Also, lenders often expect you to repay your cash advance upon
the arrival of your next paycheck. Ensure that your budget
allows you to repay your loan as well as allocate enough for
your regular expenses.
Maximize your online resources
Several websites offer various tools and resources that will
help you make an educated decision about applying for a cash
advance. Most loan-related websites have loan calculators that
help you compute the cost of your repayments. These special
calculators factor in your loan’s interest rates, allowing you
to find the most affordable loan. Online articles are also
available, keeping you informed about the latest trends in the
loans market.
You don’t need to be the “ideal” borrower to get an approval
With a payday cash advance loan, your credit will not be pulled,
so it makes no difference whether you have good or bad credit.
The loan is based on your ability to repay quickly, your
employment. Keep in mind that you should fill out your
application accurately and that you must submit all required
documents.
With these three things in mind, you’ll be able to maintain
confidence and optimism when working on your loan application.
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