Shocking Facts - What Debt Settlement Companies Don't Tell You
by: Denise Hall
If you're thinking about using a debt consolidation or debt settlement
service to help you get out of debt faster and save money on your monthly
payments, make sure you do your homework before choosing a company. There
are definitely shams and scams out there.
First let me say that debt consolidation is *not* the same as debt
settlement/negotiation, which most people don't realize.
Debt settlement companies charge hundreds of dollars as an initial "admin
fee" to set up your account, plus a monthly service fee. The fees vary
depending on the company and the amount of your debts.
Such companies take your money every month, but don't make monthly
payments to your creditors! Instead, they put it in a trust account,
negotiate your debts with your creditors, then make a lump-sum payment
when there's enough in your account to pay a creditor in full.
That can take *years* depending on the amount of debt you have with each
creditor. Meanwhile, you can be sued by your creditors and your wages can
be garnished! (Or just don't make payments to your creditors. You'll end
up in the same spot without paying someone to help you get there!)
Settlement companies don't ask your creditors to stop all interest, late
fees and overlimit fees from accruing. That means while the negotiations
are ongoing, your bills will continue to grow! So if you're sued and a
judgement is brought against you, you'll owe more money than before!
And shoddy companies, which there are alot of, don't tell you *any* of
this up front. I call it "getting permission by ommission" because they
simply don't tell you how their program works *before* you sign an
agreement with them. Or after, for that matter. But if you ask the right
questions, eventually you'll figure it out. (Or when the crap hits the
fan. Whichever comes first.)
Let me give you an example of how debt settlement works.
Let's say you have $20,000 in unsecured credit card debt. You owe $10,000
to one credit card company, $6,000 to another and $4,000 to a third. You
agree to a 5 year plan where you pay $250 a month to the settlement
company. (After all, $250 a month for 60 months is only $15,000, so
you're saving $5,000 and you'll be debt-free in 5 years, right?)
The admin fee will cost you $750. Your first 3 monthly payments go
towards that and nothing gets put into your trust account until your 4th
month.
The settlement company keeps $50 of your $250 payment each month for the
service fee. That means $200 a month is being added to your trust account.
Most debt settlement companies claim to be able to negotiate your debt
for about 50% of what you owe. So let's use the lowest credit card debt
as an example.
If you owe $4,000 and your creditor agrees to accept $2,000 as payment in
full, it will take 10 months at $200 per month to have enough in your
trust account to pay off just that one credit card.
But remember, your first 3 payments to the settlement company only paid
the admin fee. That means your first credit card settlement is 14 months
*after* you started sending them money.
So what's the problem? It's simple. Your creditor won't agree to accept
half of your actual debt unless, or until, it can be paid in full.
Otherwise, you're expected to make your normal monthly payments.
Since you don't have $2,000 in your trust account, and you won't have it
until more than a year after you stopped paying your creditor directly,
they'll probably take you to court and request that your wages be
garnished long before you have that $2,000 built up.
And what about your other creditors? Well, they'll be waiting even longer
to get their money from the settlement company. The $6,000 debt will take
15 *more* months to pay off, assuming your creditor waits that long and
agrees to 50%. And that $10,000 bill? You do the math.
On the other hand, if you signed up for a 3 year plan with the settlement
company, your debts would be paid off sooner. But, the question is, will
your creditors wait that long? Probably not.
The facts are, you can negotiate with your creditors yourself. Most will
agree to take a smaller monthly payment from you and stop all interest
and fees from accruing. And, of course, you'll save thousands of dollars
in fees to a settlement company.
Before signing up for any service, please be sure you check out the
company thoroughly. And don't let the words "non-profit" fool you either.
Alot of debt settlement companies claim to be non-profit.
Going back to the example above, if you pay them $15,000 over a 5 year
time frame and they settle your debts at half of what you owed, they'll
make $5,000 from you. I'd call that a profit, especially since they might
not have actually helped you in any way.
Most companies will allow you to cancel your account and get a refund of
what you've paid, less the non-refundable admin fee and the monthly
service fees. If you feel you've been mislead about their program, don't
hesitate to argue til the cows come home. File a complaint with the
Better Business Bureau or hire an attorney if you feel you're getting
nowhere.
You can visit the Better Business Bureau's website (http://www.bbb.org) and find reports on hundreds of companies. Here's a
small listing of companies that have poor reputations with the BBB:
National Consumer Debt Council LLC - Irvine, CA (A.K.A. NCDC, United
Consumer Law Group)
Financial Rescue Services - Burbank, CA
Debt Legal Services - Anaheim, CA
American Debt Relief - Los Angeles, CA (A.K.A. A M Debt, American Debts
Relief, Debt Relief)
Please be very cautious when choosing a debt help company and ask lots of
questions before agreeing to anything. If you find they're evading your
questions, run fast and run far. There are reputable companies out there,
so keep looking until you find one.
About The Author
Denise Hall is the owner of Home Business on a Budget which specializes
in tools and resources for your home business needs. Visit
http://www.home-business-on-a-budget.com today. Subscribe to Home
Business on a Budget Newsletter for weekly articles, tips, information
and resources. To Subscribe mailto:hbb_newsletter@a1ebiz.com
If you would like to receive her new articles when they are written,
please mailto:denise_hall@freeautobot.com
This article may be reprinted in its entirety with this resource box
included.
dmh0226@voyager.net
Friday, July 31, 2009
Thursday, July 30, 2009
Slam the Door on Debt
Slam the Door on Debt
by: ARA Content
http://IHateFinancialPlanning.com offers ten
tips to help you get out and stay out
(ARA) - According to American Consumer Credit Counseling, Inc., the
average balance on a credit card is $7,000, offering an average interest
rate of 18.9 percent.
Additional statistics show that the average household has 10 credit cards
and, not surprisingly, over half of those households report having
trouble paying their minimum monthly payments.
Common indicators of a debt problem include not knowing the state of your
personal finances; not knowing how much you owe or what interest rate you
are paying; missing payments; having poor savings habits; using one
credit card to pay another, or living paycheck-to-paycheck.
For many Americans, the statistics and debt problem indicators hit even
closer to home with the conclusion of the holiday shopping season and the
onset of the ever-dreaded tax season. Facing debts is one of the major
barriers for people in dealing with their personal finances.
One organization that understands the problems associated with debt
management is IHateFinancialPlanning.com
(www.IHateFinancialPlanning.com), a Web site intended for the 3 out of 4
Americans who hate financial planning. The site offers helpful tips for
eliminating debt and staying out of debt in the future.
"Millions of Americans love the instant gratification of using their
credit card and hate thinking about the serious consequences of
accumulating debt," says Randy Schuldt, a vice president with
IHateFinancialPlanning.com. "Debt can paralyze people from moving
forward. But, with a solid plan and the right tools, paying off their
credit cards and eliminating their debts can be tolerable and even
enjoyable."
Numerous options are available for those who are struggling to shut the
door on debt. Declaring bankruptcy is not necessarily the best option.
Sites such as IHateFinancialPlanning.com provide advice, tools and
resources for those needing assistance. Visitors to the site also have
the option of e-mailing their questions and receiving a free answer from
a professional with no strings or sales pitches attached.
To help you get started on the road to less debt and greater
gratification, IHateFinancialPlanning.com offers the following tips:
Put Yourself First
That's right! It sounds a bit surprising, but according to Debtors
Anonymous (www.debtorsanonymous.org), it's critical to take care of
yourself while eliminating debt. No, this doesn't mean that you can go on
a spending spree if you are feeling depressed. Instead, get plenty of
rest and eat well to keep energized while focusing on your goal of being
debt free.
Keep a Record and Prioritize
Keep track of every nickel you spend for a month and record amounts spent
in appropriate categories - i.e. housing, transportation, food, clothes,
entertainment, etc. It doesn't have to be a fancy software program - just
a pencil and a pad of paper will suffice. At the end of the month,
analyze where your money is going. Decide if the items purchased are
necessities or niceties. Be realistic. What spending can you eliminate or
reduce in order to reach your goal of being debt free? Perhaps you can
pack your lunch rather than eat out every day, rent a movie rather than
see the latest release, or scale down on your clothing budget. Do you
really need another tie or an additional pair of black shoes?
List Your Debts
Create a list of your debts - the amount you owe and the interest rate.
Make the minimum payment each month - but more importantly, make a
commitment to pay off the debt with the highest interest rate first by
making an extra payment. After you've paid off that debt, apply the
amount you were paying on the old debt to your next debt with the next
highest interest rate. Don't reduce the total debt payment amount just
because one debt is paid off.
Create a Spending Plan
Once you have made a record of how you spend your money and have
concluded which expenses are necessary, then you are ready to create a
spending plan. Start by projecting how much money you will spend in each
category for the month. Change the amount if your situation changes.
Didn't expect to break your arm and dent your vehicle's bumper in the
same month? Make adjustments and move forward. Create a new plan for each
month. This is the best tool to stay in control of your spending.
Remember that some of these tips are appropriate for your lifestyle, some
of them are not. Personalize your plan and keep focused.
Cut Up and Cancel
Get rid of those credit cards! Cut them up and cancel them. Be aware that
when you try to cancel your credit card, the company may offer you an
extended line of credit or a lower interest rate. Do not be tempted! It's
not your glowing personality that entices them to do business with you.
If you can handle having one, keep a credit card for emergency purposes
(which doesn't include a last-minute trip to the Bahamas to beat the
winter blahs). Pay off that one credit card each and every month - or
else be back in the same shipwrecked boat of debt. Minimum monthly
payments are not acceptable.
Debit Not Credit
Love the feel of plastic sliding through your fingers while making a
purchase? Worried you will have withdrawal? Use a debit card that
immediately withdraws money from your checking account. Experience the
feeling of gratification knowing you've paid for the item you just picked
out.
Income-producing Investments
Use credit to purchase items that give you some income-producing
potential. There is such a thing as good debt - a mortgage for a home, a
loan for an education or the start of a new business. Sorry, payments on
an expensive new SUV don't count unless you make a living as a chauffeur.
Credit is Not Income
If you apply for one of the seven credit card applications that arrive
annually in an average American's mail, and receive a $5000 line of
credit, don't consider it a raise. It's not your money and you haven't
earned it. You have simply been given the opportunity to accumulate debt
at the lender's benefit. Americans paid out approximately $65 billion in
interest last year alone. With the exception of your mortgage, credit
payments should never exceed 10 percent of your income.
Shop Around and Be Smart
Take a look at other interest rates. Be smart. Don't finance your car
with a credit card if you can get a car loan at a lower interest rate. If
your current interest rate on your credit card is 15 percent and another
company is offering you 8 percent, contact your credit card company and
see if they will meet the competitor's rate. If not, take advantage of
offers to transfer your higher interest rate cards to lower interest rate
cards. It's worth the time to shop around while you are lowering your
debt.
Save, Save and Then Save Some More
Start saving today. If your credit card payment of $500 per month was
eliminated and you were able to invest that amount in a savings vehicle
earning a 10 percent return, you would save over $1 million in 30 years.
That's real money in your piggy bank.
Leave the Piggy Bank Alone
If you have already started a 401K plan or have a savings account, resist
the temptation of using your investments to pay off your debt. Take
advantage of the good side of interest - the compounding side - and keep
your investments on track. Think long-term, not short-term, while paying
off your debts.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: For more information contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com
or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525,
sdupont@clynch.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Call (320) 656-4300, ext. 64691, for a prospectus, which
contains complete information on expenses and charges. Read it carefully
before you send money or invest. IHateFinancialPlanning.com is part of
the ING Group, a worldwide leader in the fields of insurance, banking and
asset management, with more than 100,000 employees in 65 countries.
by: ARA Content
http://IHateFinancialPlanning.com offers ten
tips to help you get out and stay out
(ARA) - According to American Consumer Credit Counseling, Inc., the
average balance on a credit card is $7,000, offering an average interest
rate of 18.9 percent.
Additional statistics show that the average household has 10 credit cards
and, not surprisingly, over half of those households report having
trouble paying their minimum monthly payments.
Common indicators of a debt problem include not knowing the state of your
personal finances; not knowing how much you owe or what interest rate you
are paying; missing payments; having poor savings habits; using one
credit card to pay another, or living paycheck-to-paycheck.
For many Americans, the statistics and debt problem indicators hit even
closer to home with the conclusion of the holiday shopping season and the
onset of the ever-dreaded tax season. Facing debts is one of the major
barriers for people in dealing with their personal finances.
One organization that understands the problems associated with debt
management is IHateFinancialPlanning.com
(www.IHateFinancialPlanning.com), a Web site intended for the 3 out of 4
Americans who hate financial planning. The site offers helpful tips for
eliminating debt and staying out of debt in the future.
"Millions of Americans love the instant gratification of using their
credit card and hate thinking about the serious consequences of
accumulating debt," says Randy Schuldt, a vice president with
IHateFinancialPlanning.com. "Debt can paralyze people from moving
forward. But, with a solid plan and the right tools, paying off their
credit cards and eliminating their debts can be tolerable and even
enjoyable."
Numerous options are available for those who are struggling to shut the
door on debt. Declaring bankruptcy is not necessarily the best option.
Sites such as IHateFinancialPlanning.com provide advice, tools and
resources for those needing assistance. Visitors to the site also have
the option of e-mailing their questions and receiving a free answer from
a professional with no strings or sales pitches attached.
To help you get started on the road to less debt and greater
gratification, IHateFinancialPlanning.com offers the following tips:
Put Yourself First
That's right! It sounds a bit surprising, but according to Debtors
Anonymous (www.debtorsanonymous.org), it's critical to take care of
yourself while eliminating debt. No, this doesn't mean that you can go on
a spending spree if you are feeling depressed. Instead, get plenty of
rest and eat well to keep energized while focusing on your goal of being
debt free.
Keep a Record and Prioritize
Keep track of every nickel you spend for a month and record amounts spent
in appropriate categories - i.e. housing, transportation, food, clothes,
entertainment, etc. It doesn't have to be a fancy software program - just
a pencil and a pad of paper will suffice. At the end of the month,
analyze where your money is going. Decide if the items purchased are
necessities or niceties. Be realistic. What spending can you eliminate or
reduce in order to reach your goal of being debt free? Perhaps you can
pack your lunch rather than eat out every day, rent a movie rather than
see the latest release, or scale down on your clothing budget. Do you
really need another tie or an additional pair of black shoes?
List Your Debts
Create a list of your debts - the amount you owe and the interest rate.
Make the minimum payment each month - but more importantly, make a
commitment to pay off the debt with the highest interest rate first by
making an extra payment. After you've paid off that debt, apply the
amount you were paying on the old debt to your next debt with the next
highest interest rate. Don't reduce the total debt payment amount just
because one debt is paid off.
Create a Spending Plan
Once you have made a record of how you spend your money and have
concluded which expenses are necessary, then you are ready to create a
spending plan. Start by projecting how much money you will spend in each
category for the month. Change the amount if your situation changes.
Didn't expect to break your arm and dent your vehicle's bumper in the
same month? Make adjustments and move forward. Create a new plan for each
month. This is the best tool to stay in control of your spending.
Remember that some of these tips are appropriate for your lifestyle, some
of them are not. Personalize your plan and keep focused.
Cut Up and Cancel
Get rid of those credit cards! Cut them up and cancel them. Be aware that
when you try to cancel your credit card, the company may offer you an
extended line of credit or a lower interest rate. Do not be tempted! It's
not your glowing personality that entices them to do business with you.
If you can handle having one, keep a credit card for emergency purposes
(which doesn't include a last-minute trip to the Bahamas to beat the
winter blahs). Pay off that one credit card each and every month - or
else be back in the same shipwrecked boat of debt. Minimum monthly
payments are not acceptable.
Debit Not Credit
Love the feel of plastic sliding through your fingers while making a
purchase? Worried you will have withdrawal? Use a debit card that
immediately withdraws money from your checking account. Experience the
feeling of gratification knowing you've paid for the item you just picked
out.
Income-producing Investments
Use credit to purchase items that give you some income-producing
potential. There is such a thing as good debt - a mortgage for a home, a
loan for an education or the start of a new business. Sorry, payments on
an expensive new SUV don't count unless you make a living as a chauffeur.
Credit is Not Income
If you apply for one of the seven credit card applications that arrive
annually in an average American's mail, and receive a $5000 line of
credit, don't consider it a raise. It's not your money and you haven't
earned it. You have simply been given the opportunity to accumulate debt
at the lender's benefit. Americans paid out approximately $65 billion in
interest last year alone. With the exception of your mortgage, credit
payments should never exceed 10 percent of your income.
Shop Around and Be Smart
Take a look at other interest rates. Be smart. Don't finance your car
with a credit card if you can get a car loan at a lower interest rate. If
your current interest rate on your credit card is 15 percent and another
company is offering you 8 percent, contact your credit card company and
see if they will meet the competitor's rate. If not, take advantage of
offers to transfer your higher interest rate cards to lower interest rate
cards. It's worth the time to shop around while you are lowering your
debt.
Save, Save and Then Save Some More
Start saving today. If your credit card payment of $500 per month was
eliminated and you were able to invest that amount in a savings vehicle
earning a 10 percent return, you would save over $1 million in 30 years.
That's real money in your piggy bank.
Leave the Piggy Bank Alone
If you have already started a 401K plan or have a savings account, resist
the temptation of using your investments to pay off your debt. Take
advantage of the good side of interest - the compounding side - and keep
your investments on track. Think long-term, not short-term, while paying
off your debts.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: For more information contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com
or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525,
sdupont@clynch.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Call (320) 656-4300, ext. 64691, for a prospectus, which
contains complete information on expenses and charges. Read it carefully
before you send money or invest. IHateFinancialPlanning.com is part of
the ING Group, a worldwide leader in the fields of insurance, banking and
asset management, with more than 100,000 employees in 65 countries.
Wednesday, July 29, 2009
How Do You Put a Value on Your Time?
How Do You Put a Value on Your Time?
by: Janice D. Byer, MVA
As a small business owner, does the following paragraph sound familiar to
you…?
“Other than doing the technical ‘fix-its’ with my computer…I do it all! I
have found that this keeps me very limited in growing my business and
taking on new clients. I wish I had someone to help but how can I justify
hiring someone when I can do the work myself…when I have the time?”
This is a very common issue for many small business owners. All the work,
whether revenue generating or not, needs to be done to keep the business
running smoothly.
We need to reconnect with our goals for our business and our vision for
its future. We need to focus on why we started this business in the first
place. Focusing includes deciding how much our time is worth.
But, how do you put a value on your time? How much is each hour of each
day worth, especially when you are doing projects that are not generating
revenue or increasing your customer base?
Is your time worth $25, $50, $100 per hour….or more? When you get busy
doing those tasks that don’t directly generate revenue, consider how much
it is costing you.
For example:
You charge $75 per hour for your services/time. You spend a total of 5
hours trying to catch up on your correspondence…entering information into
a database, typing and re-typing your letters and preparing them to be
mailed.
$75/hr X 5 hours = $375.00 of your valuable time and profit
If it would cost you less to outsource, why not do it? Why not allow a
professional to handle some of your tasks leaving you with more time to
generate revenue?
$25/hr (sample cost to outsource) X 5 hours = $125.00
$375 - $125 = $250 + the $ of the contract you signed while a
professional took care of the non-revenue generating tasks.
Although you are spending some of your hard earned money, you are gaining
so much more. Outsourcing gives you professional assistance, which in
turn saves you both time and money...the two things that most small
business owners need more of.
About The Author
Janice Byer is a certified Master Virtual Assistant and owner of
Docu-Type Administrative & Web Design Services (http://www.docutype.net). See this and other articles on her website.
jbyer@docutype.net
by: Janice D. Byer, MVA
As a small business owner, does the following paragraph sound familiar to
you…?
“Other than doing the technical ‘fix-its’ with my computer…I do it all! I
have found that this keeps me very limited in growing my business and
taking on new clients. I wish I had someone to help but how can I justify
hiring someone when I can do the work myself…when I have the time?”
This is a very common issue for many small business owners. All the work,
whether revenue generating or not, needs to be done to keep the business
running smoothly.
We need to reconnect with our goals for our business and our vision for
its future. We need to focus on why we started this business in the first
place. Focusing includes deciding how much our time is worth.
But, how do you put a value on your time? How much is each hour of each
day worth, especially when you are doing projects that are not generating
revenue or increasing your customer base?
Is your time worth $25, $50, $100 per hour….or more? When you get busy
doing those tasks that don’t directly generate revenue, consider how much
it is costing you.
For example:
You charge $75 per hour for your services/time. You spend a total of 5
hours trying to catch up on your correspondence…entering information into
a database, typing and re-typing your letters and preparing them to be
mailed.
$75/hr X 5 hours = $375.00 of your valuable time and profit
If it would cost you less to outsource, why not do it? Why not allow a
professional to handle some of your tasks leaving you with more time to
generate revenue?
$25/hr (sample cost to outsource) X 5 hours = $125.00
$375 - $125 = $250 + the $ of the contract you signed while a
professional took care of the non-revenue generating tasks.
Although you are spending some of your hard earned money, you are gaining
so much more. Outsourcing gives you professional assistance, which in
turn saves you both time and money...the two things that most small
business owners need more of.
About The Author
Janice Byer is a certified Master Virtual Assistant and owner of
Docu-Type Administrative & Web Design Services (http://www.docutype.net). See this and other articles on her website.
jbyer@docutype.net
Tuesday, July 28, 2009
Credit Report And Correction Techniques
Credit Report And Correction Techniques
by: Virginia Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you. Their report includes where you live,
your bill-paying habits, and bankruptcy and arrest information. The
information compiled by them is used to determine whether you would be a
good borrower. It may also be used by a business to decide whether you
would be a good employee.
Credit report repair involves techniques for removing negative credit
records from your credit report. These are the exact same methods credit
score repair clinics and attorneys may charge up to $3,500 to perform. It
is also possible to outsmart creditors who are damaging your credit score.
1. Many times the creditor does not re-verify in time or the credit
bureau is busy and does not handle your dispute properly. This credit
record must then be deleted from your credit report.
2. Every negative credit record on your credit report can be negated by
you at any time. The credit bureau must reinvestigate and if that item
cannot be verified within a reasonable amount of time, that credit record
must be removed from the credit file (credit report).
3. Challenged credit record when challenged can be erased by mistake.
4. The credit bureau must prove each credit record on your credit report.
If this is not possible, it must be stricken from the credit report. So,
if the credit bureau cannot verify the credit record when investigated,
it must be removed from your credit file (credit report) even if it is
true.
5. It is possible that a very old credit records cannot be verified
because records may no longer exist after 1 or 2 years on credit report.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legalhelper.ws (
http://www.legalhelper.ws ).
About The Author
Virginia Broobin- Financial marketing specialist.
contact@legalhelper.ws
by: Virginia Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you. Their report includes where you live,
your bill-paying habits, and bankruptcy and arrest information. The
information compiled by them is used to determine whether you would be a
good borrower. It may also be used by a business to decide whether you
would be a good employee.
Credit report repair involves techniques for removing negative credit
records from your credit report. These are the exact same methods credit
score repair clinics and attorneys may charge up to $3,500 to perform. It
is also possible to outsmart creditors who are damaging your credit score.
1. Many times the creditor does not re-verify in time or the credit
bureau is busy and does not handle your dispute properly. This credit
record must then be deleted from your credit report.
2. Every negative credit record on your credit report can be negated by
you at any time. The credit bureau must reinvestigate and if that item
cannot be verified within a reasonable amount of time, that credit record
must be removed from the credit file (credit report).
3. Challenged credit record when challenged can be erased by mistake.
4. The credit bureau must prove each credit record on your credit report.
If this is not possible, it must be stricken from the credit report. So,
if the credit bureau cannot verify the credit record when investigated,
it must be removed from your credit file (credit report) even if it is
true.
5. It is possible that a very old credit records cannot be verified
because records may no longer exist after 1 or 2 years on credit report.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legalhelper.ws (
http://www.legalhelper.ws ).
About The Author
Virginia Broobin- Financial marketing specialist.
contact@legalhelper.ws
Monday, July 27, 2009
Details about Refinancing a Second Mortgage
Details about Refinancing a Second Mortgage
by: Allan Young
According to the Mortgage Bankers Association, 2009 will see the amount
of mortgage refinances rise from about $850 billion to over $1.9
trillion. While most of those refinanced mortgages will be primary
mortgages, there are many good reasons to consider refinancing a second
mortgage on your home. If you are making payments on a second mortgage,
also referred to as a home equity loan, refinancing could save you a good
deal of money on your loan repayment.
Why Refinance a Second Mortgage?
The reasons for refinancing a second mortgage are no different than the
reasons for refinancing a primary mortgage. When refinancing a second
mortgage you can potentially lower monthly loan payments, get into a
fixed rate loan from an adjustable rate loan, shorten the term of your
loan, and even get cash back at the closing. In addition to these
reasons, refinancing for a second mortgage also helps to combine your
first and second mortgage into one loan, so that you will have only one
payment to make. Refinancing for a second mortgage can also help to get
rid of private mortgage insurance. It is most important to know that
refinancing for a second mortgage is essentially the same process as
refinancing for your primary mortgage.
Does Refinancing Your Second Mortgage Make Sense?
There are many factors to consider when deciding whether or not to
refinance a second mortgage. Before you apply for a loan, you should
carefully weigh the costs versus the benefits, to see if it makes
financial sense for you. In order for a mortgage refinance to make sense,
most financial experts suggest that you follow some basic rules of thumb:
- A mortgage refinance may be a good idea if the interest rates have
dropped at least one percentage point below your current second mortgage
rate.
- A mortgage refinance only makes sense if you plan to remain in your
house for at least four more years.
- The costs of taking out a new loan plus any penalties for early
repayment of your old mortgage are less than your savings if you
refinance.
- Your financial circumstances have changed enough that you can qualify
for an interest rate that is at least one percent lower than your current
second mortgage interest rate.
How to Refinance a Second Mortgage
Before you decide on a second mortgage, you should first assess your own
financial health. Check your credit report to be sure that it accurately
reflects your current circumstances. If there are inaccuracies or
discrepancies on your credit report that may lower your credit score,
contact the credit bureaus to have the situation dealt with and removed.
If your credit is shaky, do what you can to rehab your credit score. Try
to pay off credit card balances as much as you can, and bring all of your
accounts to current standings. In certain cases, you may have to resolve
to make regular payments on all of your accounts for several months
before actually applying for a mortgage refinance loan.
You also want to decide what your aim is for refinancing your second
mortgage in order to figure out what kind of new loan to seek. For
example, if you want to lower your monthly payment and save money on your
overall mortgage, look for a mortgage refinance with a lower interest
rate. If you want to lower your monthly payment but the overall mortgage
is not important to you, try to refinance into a longer term second
mortgage. If your intent is to pay off your mortgage more quickly, look
for a mortgage with a shorter term. Your monthly payments will be larger,
but you will save a considerable amount of money over the life of your
loan. Lastly, if you want to combine your primary and second mortgage,
look for the lowest interest rates and shortest term that you can afford.
You will also want to get loan quotes from several lenders in order to
find the best deal. You do not have to refinance your current second
mortgage with the original lender, although your current lender may offer
you the best terms. Since each lender has their own criteria for
approving loans and deciding on interest rates, the loans that you are
offered can vary by as much as a full percentage point. It is to your
benefit to shop around and compare several different loan quotes. Not
only will you have a wider variety of choices of loans, but you will also
have bargaining power if you choose to negotiate with a particular loan
company.
Lastly, you want to choose the best second mortgage refinance loan that
you are offered. Once you have all of your loan quotes in line, compare
them carefully to choose the best one for your needs. Be sure to count in
the closing costs and any special incentives offered by the various loan
companies into your calculations. When you have made your choice, contact
the winning lender and finalize the arrangements for your mortgage
refinance.
About The Author
Allan Young is a freelance writer who writes about mortgages and home
ownership, often discussing a specific aspect of owning a home such as
refinancing home mortgage .
The author invites you to visit: http://www.absolutemortgageco.com
by: Allan Young
According to the Mortgage Bankers Association, 2009 will see the amount
of mortgage refinances rise from about $850 billion to over $1.9
trillion. While most of those refinanced mortgages will be primary
mortgages, there are many good reasons to consider refinancing a second
mortgage on your home. If you are making payments on a second mortgage,
also referred to as a home equity loan, refinancing could save you a good
deal of money on your loan repayment.
Why Refinance a Second Mortgage?
The reasons for refinancing a second mortgage are no different than the
reasons for refinancing a primary mortgage. When refinancing a second
mortgage you can potentially lower monthly loan payments, get into a
fixed rate loan from an adjustable rate loan, shorten the term of your
loan, and even get cash back at the closing. In addition to these
reasons, refinancing for a second mortgage also helps to combine your
first and second mortgage into one loan, so that you will have only one
payment to make. Refinancing for a second mortgage can also help to get
rid of private mortgage insurance. It is most important to know that
refinancing for a second mortgage is essentially the same process as
refinancing for your primary mortgage.
Does Refinancing Your Second Mortgage Make Sense?
There are many factors to consider when deciding whether or not to
refinance a second mortgage. Before you apply for a loan, you should
carefully weigh the costs versus the benefits, to see if it makes
financial sense for you. In order for a mortgage refinance to make sense,
most financial experts suggest that you follow some basic rules of thumb:
- A mortgage refinance may be a good idea if the interest rates have
dropped at least one percentage point below your current second mortgage
rate.
- A mortgage refinance only makes sense if you plan to remain in your
house for at least four more years.
- The costs of taking out a new loan plus any penalties for early
repayment of your old mortgage are less than your savings if you
refinance.
- Your financial circumstances have changed enough that you can qualify
for an interest rate that is at least one percent lower than your current
second mortgage interest rate.
How to Refinance a Second Mortgage
Before you decide on a second mortgage, you should first assess your own
financial health. Check your credit report to be sure that it accurately
reflects your current circumstances. If there are inaccuracies or
discrepancies on your credit report that may lower your credit score,
contact the credit bureaus to have the situation dealt with and removed.
If your credit is shaky, do what you can to rehab your credit score. Try
to pay off credit card balances as much as you can, and bring all of your
accounts to current standings. In certain cases, you may have to resolve
to make regular payments on all of your accounts for several months
before actually applying for a mortgage refinance loan.
You also want to decide what your aim is for refinancing your second
mortgage in order to figure out what kind of new loan to seek. For
example, if you want to lower your monthly payment and save money on your
overall mortgage, look for a mortgage refinance with a lower interest
rate. If you want to lower your monthly payment but the overall mortgage
is not important to you, try to refinance into a longer term second
mortgage. If your intent is to pay off your mortgage more quickly, look
for a mortgage with a shorter term. Your monthly payments will be larger,
but you will save a considerable amount of money over the life of your
loan. Lastly, if you want to combine your primary and second mortgage,
look for the lowest interest rates and shortest term that you can afford.
You will also want to get loan quotes from several lenders in order to
find the best deal. You do not have to refinance your current second
mortgage with the original lender, although your current lender may offer
you the best terms. Since each lender has their own criteria for
approving loans and deciding on interest rates, the loans that you are
offered can vary by as much as a full percentage point. It is to your
benefit to shop around and compare several different loan quotes. Not
only will you have a wider variety of choices of loans, but you will also
have bargaining power if you choose to negotiate with a particular loan
company.
Lastly, you want to choose the best second mortgage refinance loan that
you are offered. Once you have all of your loan quotes in line, compare
them carefully to choose the best one for your needs. Be sure to count in
the closing costs and any special incentives offered by the various loan
companies into your calculations. When you have made your choice, contact
the winning lender and finalize the arrangements for your mortgage
refinance.
About The Author
Allan Young is a freelance writer who writes about mortgages and home
ownership, often discussing a specific aspect of owning a home such as
refinancing home mortgage .
The author invites you to visit: http://www.absolutemortgageco.com
Sunday, July 26, 2009
Why Your Mutual Fund Doesn't Return as Much as You Think
Why Your Mutual Fund Doesn't Return as Much as You Think
by: ARA Content
(ARA) - As tax time nears, many mutual fund investors are starting to
wince. While most mutual funds' returns were down last year, their tax
bill remains high.
After years under-performing the S&P 500, the average US stock mutual
fund finally beat the index last year. But while the average fund was
down just 0.37% v. the S&P 500's 9.1% drop, investors in the average fund
actually lost around 3% when you add in the fees and capital gains taxes
they must pay, says James O'Shaughnessy, CEO of Netfolio.com
[http://Netfolio.com] and author of the bestseller What Works on Wall
Street.
"Mutual fund performance figures often leave out the taxes and some fees
you are required to pay as an investor," says O'Shaughnessy, a former
mutual fund manager and architect of a new investment service that
eliminates the big drawbacks of mutual funds. "The little guy is left
thinking he didn't do too badly when in fact he didn't do nearly as well
as he thought."
Even the Securities and Exchange Commission is fed up. Just weeks ago,
the SEC set new rules requiring mutual funds to disclose what they
haven't disclosed for years -- the impact of income taxes on a fund's
performance.
In the 1990s, investors all but overlooked their tax hit and the hidden
costs in mutual fund investing. Strong and steady bull market fund
returns made taxes a non-issue. But now, as investors gear up to pay
taxes in April, many are discovering the inequity of paying high taxes on
funds that declined in value.
How do taxes eat into fund returns? Let's say you invested $1,000 in the
average mutual fund in January 2000. You would think that because the
fund declined 0.37%, it left you with about $996 in December. Not too
bad, you say, it could have been worse.
But not so fast. Throughout the year, the manager of the average mutual
fund commonly sells 92% of his fund's stocks in an attempt to boost
returns. Who pays the capital gains taxes on his giddy trading activity?
You do. In fact, you'll have to pay a higher, short-term tax rate on the
gains from assets the manger held for less than a year.
That means you'll have to use your income tax bracket to calculate your
bill rather than the lower 20% rate charged on long-term gains. Your tax
rate on these gains could be as high as 50% after you add up the your
federal, state and local tax rates.
But taxes are only half the story. The typical mutual fund also charges
annual fees, an expense ratio it uses to pay the fund manager, and
transaction costs it uses to pay the fund's brokerage expenses.
Now let's revisit that $1,000 you invested in the average mutual fund
last January. By December, you would have paid about $18 in fees and
about $12 in capital gains taxes. So you lost about $30 on your $1,000
investment, not $3.70. That's about a 3% decline rather than the 0.37%
drop reported recently by fund-tracking firm Lipper Inc. The 0.37%
decline is the gross return of the average US stock fund and does not
include taxes or fees.
"Mutual fund investors should be offended by the amount of taxes and fees
they have to pay," says O'Shaughnessy. "Mutual funds may seem like
no-brainer investments but they can compromise your long-term savings
potential. All the money you spend on fees and short-term capital gains
taxes could have remained invested and compounding."
O'Shaughnessy has identified five big mutual fund drawbacks:
1. High expense ratios. Investors pay a fee for the privilege of
owning shares. That fee goes to the fund's manager. But instead of a
flat amount, the fee is based on your assets in the fund. The more
money you have invested, the higher your fee.
2. Undisclosed transaction costs. This is the fee that a mutual fund
pays to its broker to buy and sell stocks. The fee is not found in a
fund's prospectus and is deducted from the fund's returns. The higher
the fund's portfolio turnover rate, the higher its transaction costs.
3. No control. You have no say over what stocks the fund owns. Some
stocks may be ideal for you while others are not.
4. Little knowledge. Because you don't know what specific assets a
mutual fund owns on a daily basis, you could wind up owning the same
stocks in several different funds. Or the types of stocks the fund
buys now may differ from the ones it set out to buy when you
originally invested.
5. Significant tax hits. In addition to the capital gains taxes you
pay when your fund manager actively trades stocks, you also face
"embedded capital gains." These can occur when a fund you recently
bought sells a stock it has held for many years. Your tax hit on that
trade will be equal to someone who has the same amount invested but
owned the fund for many years and profited from that stock's long
run-up in price.
What's the average mutual fund investor to do? Alternatives are emerging
that provide individuals with more control over their investments and
taxes. The Web-based services in this new "personal fund" sector offer
stock portfolios that are tailored to an individual investor's personal
financial goals.
Instead of buying mutual fund shares, investors in personal funds buy an
entire portfolio of stocks for a relatively low minimum investment. By
owning the stocks in a personal fund, you control your capital gains
taxes by choosing when to buy and sell stocks. You also know at all times
the stocks you own.
The low cost of ownership and individual control of tax responsibilities
offer individuals significant advantages over mutual funds and other
popular investment vehicles. As such, Forrester Research, an e-commerce
research firm in Cambridge, Mass., predicted that more than $1 trillion
will be invested in personalized funds rather than mutual funds over the
next 10 years.
"The days when mutual fund investors have to eat what they are served are
over," says O'Shaughnessy of Netfolio.com. "Personal funds make it
possible for every individual investor to own a professionally selected
stock portfolio that is reasonably priced and designed for their needs
and goals."
***************************************************************************
*******************
Netfolio.com is one of several new services offering individual investors
personalized fund portfolios and -- surprise -- the first headed by a
former mutual fund manager.
To begin investing at Netfolio, you pay $200 a year or $20 a month to
subscribe to its service. Then you open a Bear Stearns account online at
the Netfolio site at no additional cost.
To invest, you ask Netfolio to recommend personal funds that suit your
investment objectives. Or you can pick them on your own from Netfolio's
list. Each personal fund comes with a recommended stock portfolio that
you can customize prior to investment.
You can buy an entire portfolio of stocks in a personal fund with a
minimum investment of just $5,000. And there are no commissions when you
invest in Netfolio's personal funds online through Bear Stearns.
"This type of personalized investment advice used to be available only to
the superwealthy," O'Shaughnessy says. "Now, thanks to the Internet,
individual investors everywhere can access the same type of service
through their computer."
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
by: ARA Content
(ARA) - As tax time nears, many mutual fund investors are starting to
wince. While most mutual funds' returns were down last year, their tax
bill remains high.
After years under-performing the S&P 500, the average US stock mutual
fund finally beat the index last year. But while the average fund was
down just 0.37% v. the S&P 500's 9.1% drop, investors in the average fund
actually lost around 3% when you add in the fees and capital gains taxes
they must pay, says James O'Shaughnessy, CEO of Netfolio.com
[http://Netfolio.com] and author of the bestseller What Works on Wall
Street.
"Mutual fund performance figures often leave out the taxes and some fees
you are required to pay as an investor," says O'Shaughnessy, a former
mutual fund manager and architect of a new investment service that
eliminates the big drawbacks of mutual funds. "The little guy is left
thinking he didn't do too badly when in fact he didn't do nearly as well
as he thought."
Even the Securities and Exchange Commission is fed up. Just weeks ago,
the SEC set new rules requiring mutual funds to disclose what they
haven't disclosed for years -- the impact of income taxes on a fund's
performance.
In the 1990s, investors all but overlooked their tax hit and the hidden
costs in mutual fund investing. Strong and steady bull market fund
returns made taxes a non-issue. But now, as investors gear up to pay
taxes in April, many are discovering the inequity of paying high taxes on
funds that declined in value.
How do taxes eat into fund returns? Let's say you invested $1,000 in the
average mutual fund in January 2000. You would think that because the
fund declined 0.37%, it left you with about $996 in December. Not too
bad, you say, it could have been worse.
But not so fast. Throughout the year, the manager of the average mutual
fund commonly sells 92% of his fund's stocks in an attempt to boost
returns. Who pays the capital gains taxes on his giddy trading activity?
You do. In fact, you'll have to pay a higher, short-term tax rate on the
gains from assets the manger held for less than a year.
That means you'll have to use your income tax bracket to calculate your
bill rather than the lower 20% rate charged on long-term gains. Your tax
rate on these gains could be as high as 50% after you add up the your
federal, state and local tax rates.
But taxes are only half the story. The typical mutual fund also charges
annual fees, an expense ratio it uses to pay the fund manager, and
transaction costs it uses to pay the fund's brokerage expenses.
Now let's revisit that $1,000 you invested in the average mutual fund
last January. By December, you would have paid about $18 in fees and
about $12 in capital gains taxes. So you lost about $30 on your $1,000
investment, not $3.70. That's about a 3% decline rather than the 0.37%
drop reported recently by fund-tracking firm Lipper Inc. The 0.37%
decline is the gross return of the average US stock fund and does not
include taxes or fees.
"Mutual fund investors should be offended by the amount of taxes and fees
they have to pay," says O'Shaughnessy. "Mutual funds may seem like
no-brainer investments but they can compromise your long-term savings
potential. All the money you spend on fees and short-term capital gains
taxes could have remained invested and compounding."
O'Shaughnessy has identified five big mutual fund drawbacks:
1. High expense ratios. Investors pay a fee for the privilege of
owning shares. That fee goes to the fund's manager. But instead of a
flat amount, the fee is based on your assets in the fund. The more
money you have invested, the higher your fee.
2. Undisclosed transaction costs. This is the fee that a mutual fund
pays to its broker to buy and sell stocks. The fee is not found in a
fund's prospectus and is deducted from the fund's returns. The higher
the fund's portfolio turnover rate, the higher its transaction costs.
3. No control. You have no say over what stocks the fund owns. Some
stocks may be ideal for you while others are not.
4. Little knowledge. Because you don't know what specific assets a
mutual fund owns on a daily basis, you could wind up owning the same
stocks in several different funds. Or the types of stocks the fund
buys now may differ from the ones it set out to buy when you
originally invested.
5. Significant tax hits. In addition to the capital gains taxes you
pay when your fund manager actively trades stocks, you also face
"embedded capital gains." These can occur when a fund you recently
bought sells a stock it has held for many years. Your tax hit on that
trade will be equal to someone who has the same amount invested but
owned the fund for many years and profited from that stock's long
run-up in price.
What's the average mutual fund investor to do? Alternatives are emerging
that provide individuals with more control over their investments and
taxes. The Web-based services in this new "personal fund" sector offer
stock portfolios that are tailored to an individual investor's personal
financial goals.
Instead of buying mutual fund shares, investors in personal funds buy an
entire portfolio of stocks for a relatively low minimum investment. By
owning the stocks in a personal fund, you control your capital gains
taxes by choosing when to buy and sell stocks. You also know at all times
the stocks you own.
The low cost of ownership and individual control of tax responsibilities
offer individuals significant advantages over mutual funds and other
popular investment vehicles. As such, Forrester Research, an e-commerce
research firm in Cambridge, Mass., predicted that more than $1 trillion
will be invested in personalized funds rather than mutual funds over the
next 10 years.
"The days when mutual fund investors have to eat what they are served are
over," says O'Shaughnessy of Netfolio.com. "Personal funds make it
possible for every individual investor to own a professionally selected
stock portfolio that is reasonably priced and designed for their needs
and goals."
***************************************************************************
*******************
Netfolio.com is one of several new services offering individual investors
personalized fund portfolios and -- surprise -- the first headed by a
former mutual fund manager.
To begin investing at Netfolio, you pay $200 a year or $20 a month to
subscribe to its service. Then you open a Bear Stearns account online at
the Netfolio site at no additional cost.
To invest, you ask Netfolio to recommend personal funds that suit your
investment objectives. Or you can pick them on your own from Netfolio's
list. Each personal fund comes with a recommended stock portfolio that
you can customize prior to investment.
You can buy an entire portfolio of stocks in a personal fund with a
minimum investment of just $5,000. And there are no commissions when you
invest in Netfolio's personal funds online through Bear Stearns.
"This type of personalized investment advice used to be available only to
the superwealthy," O'Shaughnessy says. "Now, thanks to the Internet,
individual investors everywhere can access the same type of service
through their computer."
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
Saturday, July 25, 2009
Mr. Cheapie's Frugal Budget Tips
Mr. Cheapie's Frugal Budget Tips
by: David Leonhardt
So you feel like a hamster spinning your wheel? The faster you run, the
faster the wheel spins. Just when you get a raise, you notice the price
of hamster wheels jumps!
Mr. Cheapie is here with his super-charged budget-cutting tips.
One of the biggest wastes of money is restaurant meals. You can cook a
meal at home for about 2 cents a plate. Just put leftovers in the
microwave, and Presto!
Those same leftovers cost a lot more at a restaurant. They call it "the
buffet", and they sell it to you for $10.95.
Consider also the steak dinner that costs, say, $7 at home. At the
restaurant, you pay $13.95 for the same meal. Or, if you want fancy
napkins, $39.95.
Plus tax.
Funny thing about eating at home; you don't pay tax. But step into a
restaurant, and guess who jumps in: "Hello, my name is Taxman. I'll be
your waiter tonight. Would you like to start with something to drink?
Perhaps a very nice glass of wine? That will be 50 cents, plus the price
of the wine, of course."
"Why would you tax my wine?" Mr. Cheapie wonders. "It's not like the
government made it."
"Who do you think keeps this country free and safe so that you can enjoy
your wine?" Taxman demands. "Do you think Saddam Hussein would let you
drink wine if he was still in power?"
"I don't see how he could stop me."
"Hah!" Taxman replies. "He has spies everywhere. He knows you drink wine
and he has targeted this very bottle to self destruct."
"Actually, I don't drink wine. His spies must run on the same technology
as his scud missiles," Mr. Cheapie muses. "How about a steak dinner?"
"An excellent choice," Taxman beams. "That will be $1.73, plus the price
of the meal."
"Now what?" Mr. Cheapie demands. "Are you saying that Saddam is targeting
my steak."
"Of course not," Taxman giggles. "We have him locked away. But watch out
for North Korea."
"Why?"
"North Koreans are starving," Taxman explains. "They don't have steaks."
"Ah, so the North Korean government wants to take my steak and give it to
their citizens."
"Not a chance. That would violate the official North Korean policy of
starvation for all. They would never feed your steak to the people. But
they would hold it up to taunt them," Taxman grins. "Then they would
throw it into the fire to fuel a nuclear missile trained on this very
table you are sitting at."
"Which is why you need to tax my steak."
"Exactly," Taxman nods.
"It's like a security deposit."
"That's right," Taxman smiles.
"It's protection money."
"You understand," Taxman winks.
"It's your tip."
"That's what I sa ... no it's not! It's national defense," Taxman insists.
At home, you never have to tip the microwave. But, at the restaurant,
your waiter expects 15%.
Mr. Cheapie has discovered a legal loophole to save 15% on your
restaurant bill. According to a national Mr. Cheapie survey, your plate
usually has 15% too much food on it. Set aside 15% of your meal. When
your waiter comes to collect his tip, pay him in food. Your waiter raved
about today's special, so Mr. Cheapie is sure he will appreciate having
some for himself.
If Taxman is your waiter, don't actually give him the food. Just taunt
him with it -- then mail it to North Korea. Then they won't have to blow
up your table to get it themselves. Why pay for national defense when the
postal service can protect your freedom to eat for just the cost of a
stamp?
Aren't you glad Mr. Cheapie offers such useful, free advice?
About The Author
The author is David Leonhardt. Sign up for his weekly satire column up at
http://www.TheHappyGuy.com/positive-thinking-free-ezine.html or read
more columns at
http://www.TheHappyGuy.com/self-actualization-articles.html. Or join in
the happiness at http://www.thehappyguy.com.
info@thehappyguy.com
by: David Leonhardt
So you feel like a hamster spinning your wheel? The faster you run, the
faster the wheel spins. Just when you get a raise, you notice the price
of hamster wheels jumps!
Mr. Cheapie is here with his super-charged budget-cutting tips.
One of the biggest wastes of money is restaurant meals. You can cook a
meal at home for about 2 cents a plate. Just put leftovers in the
microwave, and Presto!
Those same leftovers cost a lot more at a restaurant. They call it "the
buffet", and they sell it to you for $10.95.
Consider also the steak dinner that costs, say, $7 at home. At the
restaurant, you pay $13.95 for the same meal. Or, if you want fancy
napkins, $39.95.
Plus tax.
Funny thing about eating at home; you don't pay tax. But step into a
restaurant, and guess who jumps in: "Hello, my name is Taxman. I'll be
your waiter tonight. Would you like to start with something to drink?
Perhaps a very nice glass of wine? That will be 50 cents, plus the price
of the wine, of course."
"Why would you tax my wine?" Mr. Cheapie wonders. "It's not like the
government made it."
"Who do you think keeps this country free and safe so that you can enjoy
your wine?" Taxman demands. "Do you think Saddam Hussein would let you
drink wine if he was still in power?"
"I don't see how he could stop me."
"Hah!" Taxman replies. "He has spies everywhere. He knows you drink wine
and he has targeted this very bottle to self destruct."
"Actually, I don't drink wine. His spies must run on the same technology
as his scud missiles," Mr. Cheapie muses. "How about a steak dinner?"
"An excellent choice," Taxman beams. "That will be $1.73, plus the price
of the meal."
"Now what?" Mr. Cheapie demands. "Are you saying that Saddam is targeting
my steak."
"Of course not," Taxman giggles. "We have him locked away. But watch out
for North Korea."
"Why?"
"North Koreans are starving," Taxman explains. "They don't have steaks."
"Ah, so the North Korean government wants to take my steak and give it to
their citizens."
"Not a chance. That would violate the official North Korean policy of
starvation for all. They would never feed your steak to the people. But
they would hold it up to taunt them," Taxman grins. "Then they would
throw it into the fire to fuel a nuclear missile trained on this very
table you are sitting at."
"Which is why you need to tax my steak."
"Exactly," Taxman nods.
"It's like a security deposit."
"That's right," Taxman smiles.
"It's protection money."
"You understand," Taxman winks.
"It's your tip."
"That's what I sa ... no it's not! It's national defense," Taxman insists.
At home, you never have to tip the microwave. But, at the restaurant,
your waiter expects 15%.
Mr. Cheapie has discovered a legal loophole to save 15% on your
restaurant bill. According to a national Mr. Cheapie survey, your plate
usually has 15% too much food on it. Set aside 15% of your meal. When
your waiter comes to collect his tip, pay him in food. Your waiter raved
about today's special, so Mr. Cheapie is sure he will appreciate having
some for himself.
If Taxman is your waiter, don't actually give him the food. Just taunt
him with it -- then mail it to North Korea. Then they won't have to blow
up your table to get it themselves. Why pay for national defense when the
postal service can protect your freedom to eat for just the cost of a
stamp?
Aren't you glad Mr. Cheapie offers such useful, free advice?
About The Author
The author is David Leonhardt. Sign up for his weekly satire column up at
http://www.TheHappyGuy.com/positive-thinking-free-ezine.html or read
more columns at
http://www.TheHappyGuy.com/self-actualization-articles.html. Or join in
the happiness at http://www.thehappyguy.com.
info@thehappyguy.com
Friday, July 24, 2009
Financial Tips for Trying Times
Financial Tips for Trying Times
by: ARA Content
IHateFinancialPlanning.com offers advice on managing your money
(ARA) - When life gets unpredictable, there's one thing Americans always
want to hang onto: their money.
During times of national uncertainty, it's only natural to want to hunker
down and hang on to your cash -- or at a minimum, squeeze as much as
possible out of every paycheck (that is, if you're still getting one).
Many Americans are feeling less secure about their lives than ever. In
fact, 63 percent feel they will have to make changes in their day-to-day
lifestyle, according to a survey by Wirthlin Worldwide, a McLean,
Va.-based research firm. Fears of the unknown, job loss or having less
income are also on people's minds.
"If you hated financial planning to begin with, the thought of managing
your money in trying times can be even more intimidating," says Randy
Schuldt, vice president with IHateFinancialPlanning.com, a Web site for
the three out of four Americans who hate financial planning. "Although it
may seem impossible to predict what the future will bring, there are some
simple steps you can take to give you more control of your money in a
changing world."
To give you and your family something to hang onto during uncertain or
changing times, IHateFinancialPlanning.com offers the following tips:
Put it in perspective. If history is any indication, the economy may not
suffer long-term ill effects from recent events. The Dow Jones industrial
average -- the oldest U.S. market benchmark -- typically falls for a
short time, but it has traditionally rebounded within six months. It
happened after Pearl Harbor, the Gulf War, the World Trade Center bombing
in 1993 and the Oklahoma City bombing in 1995. Past performance doesn't
guarantee future results, but there's a possibility that history may
repeat itself. Fearful reactions will only make the short-term last
longer.
Reduce your deficit. The nation's economic outlook is nothing you can
control, but you do have control over your own situation. If you've got
credit card debt, take steps to pay it down. Start with the cards with
the highest interest rate and pay more than the minimum on all your cards
with balances. Instead of using a credit card for future purchases, get a
debit card, which subtracts purchases directly from a bank account.
Protect future income. You owe it to yourself and family to protect your
earning power with disability income insurance and/or life insurance. The
lack of disability income insurance is the single biggest threat to the
financial well-being of the American workforce, according to the Consumer
Federation of America. It reports that 80 percent of U.S. workers either
have no long-term disability income coverage or their coverage is
inadequate.
Resist the urge to borrow from your 401(k). Many people are tempted to
borrow from their 401(k) as a first resort, but it should be the last
resort. Many people think because it's 'borrowing from themselves' that
no harm is done, but actually, they lose the chance to benefit from the
tax deferral and compound interest on potential growth of their 401(k).
That means your account will be much smaller when you retire. Also, if
you quit your job or are fired, you may be required to pay back the
entire loan immediately. If you are unable to do so, be prepared to pay
income taxes and a 10 percent early withdrawal penalty on the loan.
Balance your budget. Now is a good time to get in the habit of budgeting
your money. Track your expenses and spending for a month or so. It could
reveal some money habits that need changing. And it can help you shape
future habits, such as saving, charitable giving or just paying your
bills on time.
Save for emergencies. Many people put off saving for a rainy day. It may
not be raining on the economy yet, but the storms are brewing. A good
rule of thumb is to have at least three months' salary in the bank where
you can access it for emergencies ranging from a leaky roof to layoffs at
work.
Have a plan in case of layoff. During these tough times, more and more
companies are cutting jobs, and yours could be next. If you haven't done
so already, update your resume. Be sure you understand what you'll need
to do to maintain health insurance coverage after a layoff. You might
want to apply for a home equity line of credit. You don't have to use it,
but it's hard to get approved after you've become unemployed.
Write a will. It was a good idea before the world changed, and it's a
good idea now. As long as you're thinking about your family's financial
future, this is also a good time to formally declare your wishes about
who gets what, and how much, after you've passed away. It's also the only
way you'll be sure your wishes are carried out. You can modify your will
as often as you like, for as long as you live. You may also need a
durable power of attorney (POA), which formalizes who will make decisions
on your behalf, if you are unable to do so.
Invest in the future. Resist the urge to put future plans on hold. If you
want to buy a small business, adopt a child or retire early, put those
goals on paper and follow through with a savings plan. It's easier to
stay on track if you have something to shoot for. Regardless of the
condition of the world, keep improving the condition of your personal
finances. An investment in your future is also an investment in America's
future.
Courtesy of ARA Content, www.ARAcontent.com, e-mail: info@ARAcontent.com
EDITOR'S NOTE: For More Information, contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com or Stephen Dupont,
Carmichael Lynch Spong, (612) 375-8525, sdupont@clynch.com.
About IHateFinancialPlanning.com IHateFinancialPlanning.com is a Web site
that's already helped more than one million people who hate financial
planning make sense of their personal finances through fun, friendly,
easy-to-understand content and financial planning tools. The Web site was
developed by ReliaStar Financial Corp., a member of the ING Group.
About ING Group ING Group is a global financial institution active in the
fields of insurance, banking and asset management, with more than 100,000
employees in 65 countries. ING provides a full range of integrated
financial services for its clients through a variety of distribution
channels. In the United States, ING's product and service portfolio
includes banking, fixed and variable annuities, investment management,
life insurance, mutual funds, personal finance education seminars, and
trust services. For employers, ING businesses also offer a full range of
retirement and other worksite benefits, including group insurance
products. For more information, visit www.ing-usa.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Carmichael Lynch Spong is not affiliated with PrimeVest
Financial Services, INC. and is not a member of the ING Group.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
by: ARA Content
IHateFinancialPlanning.com offers advice on managing your money
(ARA) - When life gets unpredictable, there's one thing Americans always
want to hang onto: their money.
During times of national uncertainty, it's only natural to want to hunker
down and hang on to your cash -- or at a minimum, squeeze as much as
possible out of every paycheck (that is, if you're still getting one).
Many Americans are feeling less secure about their lives than ever. In
fact, 63 percent feel they will have to make changes in their day-to-day
lifestyle, according to a survey by Wirthlin Worldwide, a McLean,
Va.-based research firm. Fears of the unknown, job loss or having less
income are also on people's minds.
"If you hated financial planning to begin with, the thought of managing
your money in trying times can be even more intimidating," says Randy
Schuldt, vice president with IHateFinancialPlanning.com, a Web site for
the three out of four Americans who hate financial planning. "Although it
may seem impossible to predict what the future will bring, there are some
simple steps you can take to give you more control of your money in a
changing world."
To give you and your family something to hang onto during uncertain or
changing times, IHateFinancialPlanning.com offers the following tips:
Put it in perspective. If history is any indication, the economy may not
suffer long-term ill effects from recent events. The Dow Jones industrial
average -- the oldest U.S. market benchmark -- typically falls for a
short time, but it has traditionally rebounded within six months. It
happened after Pearl Harbor, the Gulf War, the World Trade Center bombing
in 1993 and the Oklahoma City bombing in 1995. Past performance doesn't
guarantee future results, but there's a possibility that history may
repeat itself. Fearful reactions will only make the short-term last
longer.
Reduce your deficit. The nation's economic outlook is nothing you can
control, but you do have control over your own situation. If you've got
credit card debt, take steps to pay it down. Start with the cards with
the highest interest rate and pay more than the minimum on all your cards
with balances. Instead of using a credit card for future purchases, get a
debit card, which subtracts purchases directly from a bank account.
Protect future income. You owe it to yourself and family to protect your
earning power with disability income insurance and/or life insurance. The
lack of disability income insurance is the single biggest threat to the
financial well-being of the American workforce, according to the Consumer
Federation of America. It reports that 80 percent of U.S. workers either
have no long-term disability income coverage or their coverage is
inadequate.
Resist the urge to borrow from your 401(k). Many people are tempted to
borrow from their 401(k) as a first resort, but it should be the last
resort. Many people think because it's 'borrowing from themselves' that
no harm is done, but actually, they lose the chance to benefit from the
tax deferral and compound interest on potential growth of their 401(k).
That means your account will be much smaller when you retire. Also, if
you quit your job or are fired, you may be required to pay back the
entire loan immediately. If you are unable to do so, be prepared to pay
income taxes and a 10 percent early withdrawal penalty on the loan.
Balance your budget. Now is a good time to get in the habit of budgeting
your money. Track your expenses and spending for a month or so. It could
reveal some money habits that need changing. And it can help you shape
future habits, such as saving, charitable giving or just paying your
bills on time.
Save for emergencies. Many people put off saving for a rainy day. It may
not be raining on the economy yet, but the storms are brewing. A good
rule of thumb is to have at least three months' salary in the bank where
you can access it for emergencies ranging from a leaky roof to layoffs at
work.
Have a plan in case of layoff. During these tough times, more and more
companies are cutting jobs, and yours could be next. If you haven't done
so already, update your resume. Be sure you understand what you'll need
to do to maintain health insurance coverage after a layoff. You might
want to apply for a home equity line of credit. You don't have to use it,
but it's hard to get approved after you've become unemployed.
Write a will. It was a good idea before the world changed, and it's a
good idea now. As long as you're thinking about your family's financial
future, this is also a good time to formally declare your wishes about
who gets what, and how much, after you've passed away. It's also the only
way you'll be sure your wishes are carried out. You can modify your will
as often as you like, for as long as you live. You may also need a
durable power of attorney (POA), which formalizes who will make decisions
on your behalf, if you are unable to do so.
Invest in the future. Resist the urge to put future plans on hold. If you
want to buy a small business, adopt a child or retire early, put those
goals on paper and follow through with a savings plan. It's easier to
stay on track if you have something to shoot for. Regardless of the
condition of the world, keep improving the condition of your personal
finances. An investment in your future is also an investment in America's
future.
Courtesy of ARA Content, www.ARAcontent.com, e-mail: info@ARAcontent.com
EDITOR'S NOTE: For More Information, contact Maclaren Latta, Carmichael
Lynch Spong, (612) 375-8570, mlatta@clynch.com or Stephen Dupont,
Carmichael Lynch Spong, (612) 375-8525, sdupont@clynch.com.
About IHateFinancialPlanning.com IHateFinancialPlanning.com is a Web site
that's already helped more than one million people who hate financial
planning make sense of their personal finances through fun, friendly,
easy-to-understand content and financial planning tools. The Web site was
developed by ReliaStar Financial Corp., a member of the ING Group.
About ING Group ING Group is a global financial institution active in the
fields of insurance, banking and asset management, with more than 100,000
employees in 65 countries. ING provides a full range of integrated
financial services for its clients through a variety of distribution
channels. In the United States, ING's product and service portfolio
includes banking, fixed and variable annuities, investment management,
life insurance, mutual funds, personal finance education seminars, and
trust services. For employers, ING businesses also offer a full range of
retirement and other worksite benefits, including group insurance
products. For more information, visit www.ing-usa.com.
Securities available through PrimeVest Financial Services, Inc., Member
NASD/SIPC. Carmichael Lynch Spong is not affiliated with PrimeVest
Financial Services, INC. and is not a member of the ING Group.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
Thursday, July 23, 2009
Home Office Tips (Part 1)
Home Office Tips (Part 1)
by: BB Lee
Tip One:
Welcome To Part One In A Series Of "Home Office Tip Articles."
Most will find the following Home Office Tips very practical and
effective if they take them into due consideration, and use these basic
strategies to improve their at home office space.
Lighting: Medical science discovered that light has a profound effect on
work output. This probably has to do with two very vital areas in the
brain, the pineal gland and hypothalamus which react strongly to the
colors around us and affect our moods.
Consequently, the lighting in your home office is very important. Place
the light source near your computer to brighten the work area. Remember
not to place it directly in front of your eyes. This might cause
unnecessary eyestrain.
Remember to adjust the lighting in your home office to help increase your
productivity by experimenting until you find the proper light intensity
that works for you.
About The Author
BB Lee is Editor Publisher Of SmallBizBits FREE Home Business Newsletter.
Visit at: http://www.angelfire.com/zine/smallbiz
smallbiz@angelfire.com
by: BB Lee
Tip One:
Welcome To Part One In A Series Of "Home Office Tip Articles."
Most will find the following Home Office Tips very practical and
effective if they take them into due consideration, and use these basic
strategies to improve their at home office space.
Lighting: Medical science discovered that light has a profound effect on
work output. This probably has to do with two very vital areas in the
brain, the pineal gland and hypothalamus which react strongly to the
colors around us and affect our moods.
Consequently, the lighting in your home office is very important. Place
the light source near your computer to brighten the work area. Remember
not to place it directly in front of your eyes. This might cause
unnecessary eyestrain.
Remember to adjust the lighting in your home office to help increase your
productivity by experimenting until you find the proper light intensity
that works for you.
About The Author
BB Lee is Editor Publisher Of SmallBizBits FREE Home Business Newsletter.
Visit at: http://www.angelfire.com/zine/smallbiz
smallbiz@angelfire.com
Wednesday, July 22, 2009
Keep Your Credit History Clean. Remove A Negative Credit Record From Credit Report
Keep Your Credit History Clean. Remove A Negative Credit Record From
Credit Report
by: Jeffrey Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you.
But very often your credit report includes inaccurate, wrong or
incomplete information (credit records).
In this situation you have to prepare and send letters to each of the
credit bureaus. Also learn your credit rights by familiarizing yourself
with the Fair Credit Reporting Act (FCRA).
The FCRA gives you the right to dispute inaccuracies or omissions, and it
requires credit bureaus to investigate your complaint (generally within
30 days), send you a prompt response and correct any errors. The law also
requires the source of inaccurate information (such as a bank) to correct
the record at the credit bureaus to which it initially provided the
erroneous information.
Consumers working on their credit reports say many times their letters
are ignored by the credit bureaus. Consumer’s say even with proof a
credit record is not theirs; its removal from their credit report can
take three or four challenge letters, because the credit bureaus may have
only verified it in their computers and not on the credit report.
Send your dispute letter by CERTIFIED RETURN RECEIPT MAIL. This should
not be done with the first attempt.
Keep a record of when you sent the dispute letters and what date you
should expect a response.
If you have received no answer to your dispute after 30 to 37 days, send
a certified return receipt letter requesting an updated credit report
demanding the disputed credit record be deleted.
If the bureaus do not reply within the 30 days, it must be that the
information was either inaccurate, or it could not be verified. In either
case, according to the Fair Credit Reporting Act, the credit record must
be immediately deleted from credit report.
Some consumers have eliminated negative marks on credit reports simply by
going through this process of disputing credit records several times.
Since some creditors will not take the time to respond, you may be able
to win by default.
In addition, some consumers working on their credit report have seen
another negative credit record or two disappeared. Usually some progress
is made each time you challenge. Remember, the credit bureau would like
you to quit bothering them because if you aren't disputing the credit
report, they can legally continue selling it as profitable information.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legal Helper website http://www.legalhelper.ws/credit-report.aspx.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
About The Author
Jeffrey Broobin is a free-lance writer on family and finance issues; his
main goal is to help people during their complicated period of life.
Website: http://www.legalhelper.ws
jeffreyb@legalhelper.ws
Credit Report
by: Jeffrey Broobin
The three major credit bureaus, Experian, Equifax and Trans Union are
similar and feature a "Credit Score", which is created from credit report
data submitted to them about you.
But very often your credit report includes inaccurate, wrong or
incomplete information (credit records).
In this situation you have to prepare and send letters to each of the
credit bureaus. Also learn your credit rights by familiarizing yourself
with the Fair Credit Reporting Act (FCRA).
The FCRA gives you the right to dispute inaccuracies or omissions, and it
requires credit bureaus to investigate your complaint (generally within
30 days), send you a prompt response and correct any errors. The law also
requires the source of inaccurate information (such as a bank) to correct
the record at the credit bureaus to which it initially provided the
erroneous information.
Consumers working on their credit reports say many times their letters
are ignored by the credit bureaus. Consumer’s say even with proof a
credit record is not theirs; its removal from their credit report can
take three or four challenge letters, because the credit bureaus may have
only verified it in their computers and not on the credit report.
Send your dispute letter by CERTIFIED RETURN RECEIPT MAIL. This should
not be done with the first attempt.
Keep a record of when you sent the dispute letters and what date you
should expect a response.
If you have received no answer to your dispute after 30 to 37 days, send
a certified return receipt letter requesting an updated credit report
demanding the disputed credit record be deleted.
If the bureaus do not reply within the 30 days, it must be that the
information was either inaccurate, or it could not be verified. In either
case, according to the Fair Credit Reporting Act, the credit record must
be immediately deleted from credit report.
Some consumers have eliminated negative marks on credit reports simply by
going through this process of disputing credit records several times.
Since some creditors will not take the time to respond, you may be able
to win by default.
In addition, some consumers working on their credit report have seen
another negative credit record or two disappeared. Usually some progress
is made each time you challenge. Remember, the credit bureau would like
you to quit bothering them because if you aren't disputing the credit
report, they can legally continue selling it as profitable information.
To obtain the excellent credit report service, correct your credit, get
FREE online Credit Report, make your Credit Score higher or avoid
becoming a Victim of Identity Theft visit Legal Helper website http://www.legalhelper.ws/credit-report.aspx.
Your credit score is important for obtaining credit. Your credit score is
important to know, whether you need a new credit card, an auto loan, or a
mortgage. Lenders use your credit scores to decide whether you are a good
credit risk. If you have a high credit score, you are more likely to
obtain the best rates.
About The Author
Jeffrey Broobin is a free-lance writer on family and finance issues; his
main goal is to help people during their complicated period of life.
Website: http://www.legalhelper.ws
jeffreyb@legalhelper.ws
Tuesday, July 21, 2009
How to Draw a Personal Budget that Works
How to Draw a Personal Budget that Works
by: Abdallah Khamis Abdallah
Many people spend their little income haphazardly without any planning
and end up getting broke before month-end. They then borrow to make ends
meet and end up with more problems that they fail to repay their debts
promptly.
However, this is not a prudent way of managing your personal financial
affairs. Planning your personal financial affairs through prioritization
of needs and budgeting income and expenses is the best way to achieving
success in managing your financial affairs.
It is important first to assess your financial needs in the short, medium
and long term. What are your financial objectives? What do you want to
achieve in the course of time? Do you have any targets? What is your
short, medium and long term needs? List all of them down.
Next categorize income and expenses on a monthly basis. Then prioritize
expenses into most important, important and most important. You can use
any other weighting or prioritization formula that works best for you.
After this assess costs based on consumption per month. Put figures to
the expense items. Then write down your income sources and the amount you
earn per month from them. List the income on the left and the expenses on
the right. Add up income amounts against expense amounts and find the
difference to determine surplus or deficit.
Once you have added and reduced items and figures several times and you
are finally satisfied with the results, type your figures on a computer
spreadsheet or word processor table and save it. You may also print it
and file it for regular reference.
To make it work successfully for you, you must vow to stick to the
budget. Any deviation must be absolutely necessary and funds should be
made available separately to meet the extra expenditure. Where no funds
are available, some cutbacks or borrowing from other expense votes. You
should ensure that you refund any funds borrowed from any expense votes
to enable the votes to be expended.
To be frank, most people would want to spend more and more irrespective
of their financial ability. However, arbitrary unbudgeted spending may be
hazardous to your financial health.
About The Author
Abdallah Khamis Abdallah is a freelance copywriter and ghostwriter. To
learn more about how you and your business can benefit from viral and
credibility marketing solutions visit his website at:
http://www.qualitywritingsolutions.com.
quantumpro@lycos.com
by: Abdallah Khamis Abdallah
Many people spend their little income haphazardly without any planning
and end up getting broke before month-end. They then borrow to make ends
meet and end up with more problems that they fail to repay their debts
promptly.
However, this is not a prudent way of managing your personal financial
affairs. Planning your personal financial affairs through prioritization
of needs and budgeting income and expenses is the best way to achieving
success in managing your financial affairs.
It is important first to assess your financial needs in the short, medium
and long term. What are your financial objectives? What do you want to
achieve in the course of time? Do you have any targets? What is your
short, medium and long term needs? List all of them down.
Next categorize income and expenses on a monthly basis. Then prioritize
expenses into most important, important and most important. You can use
any other weighting or prioritization formula that works best for you.
After this assess costs based on consumption per month. Put figures to
the expense items. Then write down your income sources and the amount you
earn per month from them. List the income on the left and the expenses on
the right. Add up income amounts against expense amounts and find the
difference to determine surplus or deficit.
Once you have added and reduced items and figures several times and you
are finally satisfied with the results, type your figures on a computer
spreadsheet or word processor table and save it. You may also print it
and file it for regular reference.
To make it work successfully for you, you must vow to stick to the
budget. Any deviation must be absolutely necessary and funds should be
made available separately to meet the extra expenditure. Where no funds
are available, some cutbacks or borrowing from other expense votes. You
should ensure that you refund any funds borrowed from any expense votes
to enable the votes to be expended.
To be frank, most people would want to spend more and more irrespective
of their financial ability. However, arbitrary unbudgeted spending may be
hazardous to your financial health.
About The Author
Abdallah Khamis Abdallah is a freelance copywriter and ghostwriter. To
learn more about how you and your business can benefit from viral and
credibility marketing solutions visit his website at:
http://www.qualitywritingsolutions.com.
quantumpro@lycos.com
Monday, July 20, 2009
How To Choose The Right Resume Format
How To Choose The Right Resume Format
by: Fayola Peters
After a thirty (30) second glance lots of resumes get thrown into the
wastebasket. One of the reasons this happens is because the resume writer
has failed to use the appropriate resume format.
Each individual has different work experiences and objectives. You may
have gaps in your work history. You may be changing careers or have had
jobs progressively in the same field.
You need to choose a format that is to your advantage and shows you as
the best candidate for the job.
Here are the two (2) main resume formats used. Decide which is best for
you.
1. The Chronological Resume Format:
* Objective
* Summary
* Experience
* Education
* References
The chronological resume format is the most popular format used by
persons, especially those who write their own resume. However, it’s not
for everyone.
This resume format is for you if;
* you have constantly moved to better and better jobs;
* all your jobs have been in the same field (more or less);
* you have no significant periods of unemployment.
From the information above, should your resume format be a chronological
one? If your answer is yes then you’re good to go. If however your answer
is no then the following format is for you.
2. The Functional Resume Format:
* Objective
* Accomplishments
* Capabilities
* Employment History
* Education
* References
The functional resume format is designed to emphasize your
accomplishments and skills needed to do the job you’re applying for. This
takes the spotlight of your work history, especially if there are gaps in
you work history.
This resume format is for you if;
* you’re changing careers;
* you’re re-entering the job market;
* you’re skills and accomplishments are stronger than your work
experience;
* you have little work experience.
A functional resume format works especially well if you’re a recent
graduate. Here’s a variation of this resume format.
* Objective
* Skills
* Education
* Work Experience
* Activities and Honors
* References
Choosing the right resume format for you is a critical step in making a
winning resume. And a resume is what get you a job interview, which in
turn gets you the job. So be vigilant and know which resume format suits
you best and use it.
About The Author
Fayola Peters is a professional resume writer with A+ Resumes. You can
check them out at http://best-online-resumes.the-free-resume.com
fayolap@yahoo.com
by: Fayola Peters
After a thirty (30) second glance lots of resumes get thrown into the
wastebasket. One of the reasons this happens is because the resume writer
has failed to use the appropriate resume format.
Each individual has different work experiences and objectives. You may
have gaps in your work history. You may be changing careers or have had
jobs progressively in the same field.
You need to choose a format that is to your advantage and shows you as
the best candidate for the job.
Here are the two (2) main resume formats used. Decide which is best for
you.
1. The Chronological Resume Format:
* Objective
* Summary
* Experience
* Education
* References
The chronological resume format is the most popular format used by
persons, especially those who write their own resume. However, it’s not
for everyone.
This resume format is for you if;
* you have constantly moved to better and better jobs;
* all your jobs have been in the same field (more or less);
* you have no significant periods of unemployment.
From the information above, should your resume format be a chronological
one? If your answer is yes then you’re good to go. If however your answer
is no then the following format is for you.
2. The Functional Resume Format:
* Objective
* Accomplishments
* Capabilities
* Employment History
* Education
* References
The functional resume format is designed to emphasize your
accomplishments and skills needed to do the job you’re applying for. This
takes the spotlight of your work history, especially if there are gaps in
you work history.
This resume format is for you if;
* you’re changing careers;
* you’re re-entering the job market;
* you’re skills and accomplishments are stronger than your work
experience;
* you have little work experience.
A functional resume format works especially well if you’re a recent
graduate. Here’s a variation of this resume format.
* Objective
* Skills
* Education
* Work Experience
* Activities and Honors
* References
Choosing the right resume format for you is a critical step in making a
winning resume. And a resume is what get you a job interview, which in
turn gets you the job. So be vigilant and know which resume format suits
you best and use it.
About The Author
Fayola Peters is a professional resume writer with A+ Resumes. You can
check them out at http://best-online-resumes.the-free-resume.com
fayolap@yahoo.com
Sunday, July 19, 2009
Financial Planning for the MTV Generation
Financial Planning for the MTV Generation
by: ARA Content
(ARA) - So, you were born between 1965 and 1978. Are you tired of the
Generation X label and being portrayed by the media as a cynical, Xtreme
sports-loving, body-piercing slacker? If you're one of the 76 million
Americans that are considered to be "Xers," you may see yourself more as
an independent, career-minded, technologically savvy, young adult. As
someone between the age of 22 and 35, "Xers" most likely tune out the
thousands of marketers with retirement messages geared towards "boomers."
Insurance providers, investment companies and financial planners are
virtually ignoring the millions of Americans considered to be "Xers."
Meanwhile this misunderstood group continues to buy homes and select
mortgage companies and retirement plans with little attention and
relevant advice.
So, are boomers the only generation that should be concerned about their
future? Absolutely not. Planning for your future can be tough for anyone,
no matter what his or her age. But individuals between the ages of 22 and
35 need to recognize the important opportunity they have of starting
early and understanding the basics, according to Randy Schuldt, vice
president with IHateFinancialPlanning.com, a new Web site geared to the
more than 75 percent of Americans who hate financial planning.
Schuldt offers some additional financial planning tips for Generation
Xers:
Think Retirement
According to the 1990 U.S. census, the average American worker has only
saved $1000 towards retirement. Pretty sad, isn't it? To make matters
worse, the average monthly Social Security benefit for a retired worker
in 2000 was $804 (Source: U.S. Social Security Administration). You've
heard it before, the sooner you start saving for your future, the better.
So where do you start? First of all, just start. Consider putting away a
little at a time -- $25 or $50 a month - in a mutual fund or 401(K)
account. If you're 25 years old and put $25 away each month into an
account earning 8.0 percent, you will have saved $58,099 by retirement at
age 60. Compare this amount to the $14,940 you would save by starting
when you're 40.
Develop a Financial Plan
Whether you're graduating from college, getting married or having a baby,
you need to set specific goals (home ownership, vacation property,
college education, retirement, etc.) and develop a financial plan for the
future. To get started, consider meeting with a financial professional. A
financial professional can help you get off on the right foot, by helping
you develop a long-term financial plan that will make your hard earned
money work harder for you.
Explore Life Insurance
If you're still living the "Friends" lifestyle and spend most of your
time at coffee shops like Monica, Joey, Phoebe, Chandler, Ross and
Rachel, you may not need to think about life insurance just yet. However,
"Xers" do settle down, get married and start families. If you have
dependents (a spouse, children or aging parents) you need life insurance.
The good news is that many employers offer life insurance as an employee
benefit. But this may not be enough. First, talk to your benefits or
human resources manager to learn more about their offerings and how to
enroll. Then, see an insurance agent who offers insurance from major
providers to determine if you may need more.
Deal with Debt
"Debt is one of the biggest financial problems facing young adults," says
Chris Newell, principal of Newell Financial Corp. in Little Rock, Ark.
When it comes to paying off debt, Newell says to start high. Rather than
concentrating on paying down a little of each credit card balance, find
out the interest rate for each card -- it should say on the monthly
statement -- and pay down the cards with the highest debt and interest
rates.
"First, make a pledge, 'no more additional credit card debt,'" Newell
says. "Then, start paying off the highest debt cards. As soon as one card
is eliminated, continue the same payments on the other cards. Never
reduce this monthly debt payment amount until they are all paid off. You
will have to be disciplined and pay substantially more each month than
the minimum balance."
Contribute the Maximum
401K plans and IRAs offer the best opportunities to take advantage of
tax-deferred savings and contributions from your employer. If you're
working, ideally you should contribute the full amount to your 401K plan
that you can. But at the very least, contribute up to the match offered
by your employer.
An IRA provides tax efficiency to set aside money for retirement. For
example, by contributing to a Roth IRA (just one type of IRA), you don't
pay income tax when you withdraw the money (including gains, dividends
and interest) assuming you are age 59- and the account has been open for
five years. If your annual income is less than $95,000 for a single
taxpayer or $150,000 for married couples filing jointly, you can
contribute to a Roth IRA.
Develop a Support Network
This is the age of information. Most likely, you may have a cell phone,
voice mail, pager and a handheld computer. You prefer to learn through
conversation and communities rather than reading text books and reports.
The same goes for financial planning. "Xers" are much more willing to
talk about their financial situation than their grandparents or even,
parents. Embrace this new freedom. Schuldt recommends creating a
community, either online or an old-fashioned investment club, and learn
from each other. Whether you pool your money and start investing in the
stock market or share investment tips and advice, communities offer a
fun, easy way to get interested in your financial future. Or go to
IHateFinancialPlanning.com to plug into a growing community of people who
share a similar hatred for financial planning.
Keep Dreaming
What is that you really want? Home ownership? Early retirement? Financial
independence? It's important to understand your financial goals and to
realize that your actions today either bring you one step closer to -- or
pull you one step back from -- your goals. If you plan to buy a home in
five to ten years, are your actions today helping or damaging your credit
rating? Not only do you need a down payment to buy a house, you need an
established credit history and a record of on-time payments.
The bottom line for "Xers" is that you should ignore the marketing
messages geared towards cynical, unmotivated slackers. It's not too early
to start planning for your future and saving for retirement, says
Schuldt. Consider the big picture. The decisions you make today about
your career, education, debt and retirement will stick with you and shape
your future. So, invest in yourself. Start small. And ignore the
stereotypes.
Securities available through PrimeVest Financial Services, Inc., an
affiliated registered broker dealer, Member NASD/SIPC. Call (320)
656-4300, ext. 64691, for a prospectus, which contains complete
information on expenses and charges. Read it carefully before you send
money or invest.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: http://IHateFinancialPlanning.com is part of the ING Group, a worldwide
leader in the fields of insurance, banking and asset management, with
more than 100,000 employees in 65 countries.
by: ARA Content
(ARA) - So, you were born between 1965 and 1978. Are you tired of the
Generation X label and being portrayed by the media as a cynical, Xtreme
sports-loving, body-piercing slacker? If you're one of the 76 million
Americans that are considered to be "Xers," you may see yourself more as
an independent, career-minded, technologically savvy, young adult. As
someone between the age of 22 and 35, "Xers" most likely tune out the
thousands of marketers with retirement messages geared towards "boomers."
Insurance providers, investment companies and financial planners are
virtually ignoring the millions of Americans considered to be "Xers."
Meanwhile this misunderstood group continues to buy homes and select
mortgage companies and retirement plans with little attention and
relevant advice.
So, are boomers the only generation that should be concerned about their
future? Absolutely not. Planning for your future can be tough for anyone,
no matter what his or her age. But individuals between the ages of 22 and
35 need to recognize the important opportunity they have of starting
early and understanding the basics, according to Randy Schuldt, vice
president with IHateFinancialPlanning.com, a new Web site geared to the
more than 75 percent of Americans who hate financial planning.
Schuldt offers some additional financial planning tips for Generation
Xers:
Think Retirement
According to the 1990 U.S. census, the average American worker has only
saved $1000 towards retirement. Pretty sad, isn't it? To make matters
worse, the average monthly Social Security benefit for a retired worker
in 2000 was $804 (Source: U.S. Social Security Administration). You've
heard it before, the sooner you start saving for your future, the better.
So where do you start? First of all, just start. Consider putting away a
little at a time -- $25 or $50 a month - in a mutual fund or 401(K)
account. If you're 25 years old and put $25 away each month into an
account earning 8.0 percent, you will have saved $58,099 by retirement at
age 60. Compare this amount to the $14,940 you would save by starting
when you're 40.
Develop a Financial Plan
Whether you're graduating from college, getting married or having a baby,
you need to set specific goals (home ownership, vacation property,
college education, retirement, etc.) and develop a financial plan for the
future. To get started, consider meeting with a financial professional. A
financial professional can help you get off on the right foot, by helping
you develop a long-term financial plan that will make your hard earned
money work harder for you.
Explore Life Insurance
If you're still living the "Friends" lifestyle and spend most of your
time at coffee shops like Monica, Joey, Phoebe, Chandler, Ross and
Rachel, you may not need to think about life insurance just yet. However,
"Xers" do settle down, get married and start families. If you have
dependents (a spouse, children or aging parents) you need life insurance.
The good news is that many employers offer life insurance as an employee
benefit. But this may not be enough. First, talk to your benefits or
human resources manager to learn more about their offerings and how to
enroll. Then, see an insurance agent who offers insurance from major
providers to determine if you may need more.
Deal with Debt
"Debt is one of the biggest financial problems facing young adults," says
Chris Newell, principal of Newell Financial Corp. in Little Rock, Ark.
When it comes to paying off debt, Newell says to start high. Rather than
concentrating on paying down a little of each credit card balance, find
out the interest rate for each card -- it should say on the monthly
statement -- and pay down the cards with the highest debt and interest
rates.
"First, make a pledge, 'no more additional credit card debt,'" Newell
says. "Then, start paying off the highest debt cards. As soon as one card
is eliminated, continue the same payments on the other cards. Never
reduce this monthly debt payment amount until they are all paid off. You
will have to be disciplined and pay substantially more each month than
the minimum balance."
Contribute the Maximum
401K plans and IRAs offer the best opportunities to take advantage of
tax-deferred savings and contributions from your employer. If you're
working, ideally you should contribute the full amount to your 401K plan
that you can. But at the very least, contribute up to the match offered
by your employer.
An IRA provides tax efficiency to set aside money for retirement. For
example, by contributing to a Roth IRA (just one type of IRA), you don't
pay income tax when you withdraw the money (including gains, dividends
and interest) assuming you are age 59- and the account has been open for
five years. If your annual income is less than $95,000 for a single
taxpayer or $150,000 for married couples filing jointly, you can
contribute to a Roth IRA.
Develop a Support Network
This is the age of information. Most likely, you may have a cell phone,
voice mail, pager and a handheld computer. You prefer to learn through
conversation and communities rather than reading text books and reports.
The same goes for financial planning. "Xers" are much more willing to
talk about their financial situation than their grandparents or even,
parents. Embrace this new freedom. Schuldt recommends creating a
community, either online or an old-fashioned investment club, and learn
from each other. Whether you pool your money and start investing in the
stock market or share investment tips and advice, communities offer a
fun, easy way to get interested in your financial future. Or go to
IHateFinancialPlanning.com to plug into a growing community of people who
share a similar hatred for financial planning.
Keep Dreaming
What is that you really want? Home ownership? Early retirement? Financial
independence? It's important to understand your financial goals and to
realize that your actions today either bring you one step closer to -- or
pull you one step back from -- your goals. If you plan to buy a home in
five to ten years, are your actions today helping or damaging your credit
rating? Not only do you need a down payment to buy a house, you need an
established credit history and a record of on-time payments.
The bottom line for "Xers" is that you should ignore the marketing
messages geared towards cynical, unmotivated slackers. It's not too early
to start planning for your future and saving for retirement, says
Schuldt. Consider the big picture. The decisions you make today about
your career, education, debt and retirement will stick with you and shape
your future. So, invest in yourself. Start small. And ignore the
stereotypes.
Securities available through PrimeVest Financial Services, Inc., an
affiliated registered broker dealer, Member NASD/SIPC. Call (320)
656-4300, ext. 64691, for a prospectus, which contains complete
information on expenses and charges. Read it carefully before you send
money or invest.
About The Author
Courtesy ARA Content, http://www.ARAcontent.com;
e-mail: info@ARAcontent.com
EDITOR'S NOTE: http://IHateFinancialPlanning.com is part of the ING Group, a worldwide
leader in the fields of insurance, banking and asset management, with
more than 100,000 employees in 65 countries.
Saturday, July 18, 2009
Credit Repair Scams
Credit Repair Scams
by: James H. Dimmitt
“Erase Bad Debt !”
“Remove Negative Items From Your Report”
You’ve probably seen these headlines and others just like it promising to
clean up or “fix” bad credit. For someone who suffers from a bad or poor
credit rating, these headlines are certainly an appealing offer.
Imagine finally being able to buy that new car, get debt collectors off
your back, and enjoy a new found freedom from your past debts.
Sound to good to be true ? It probably is. Once you fall prey to the
credit repair offer and pay the hefty fees involved to clean up your
record, here’s what happens -
1) The credit repair scam artist contacts the credit bureaus and reports
that the negative information in your file is false.
2) The credit bureau removes this negative information from your report
while they investigate the claim.
3) The scam artist will then show you the cleaned up version of your
credit report and “ta-da” your credit history has been fixed!
But here’s what the scammer doesn’t tell or show you. After the credit
bureau completes their investigation the negative information is placed
back on your credit report.
Negative but accurate information cannot be removed from your credit
profile. Only incorrect information can be removed.
Accurate information remains on your credit file for a period of 7 years
from the time it is reported to the credit agencies; a bankruptcy appears
for a 10 year period.
Many legitimate companies exist that can help you with your debt
problems. But how do you spot a scam offer ? Easy, they’ll ask you for
their fees up front. By law, credit repair agencies cannot ask for
payment until they’ve provided the service they promised.
Additionally many states require that a credit repair service, whether
they are for-profit or not-for-profit, must provide you with a detailed
written contract, an explanation of your legal rights, and the
opportunity to cancel any signed contract within 3 days.
Also, be aware that a “credit repair offer” could be an attempt to steal
your identity by getting you to provide personal information such as a
Social Security number, bank account and credit card account numbers.
Always make sure you know who you are dealing with before accepting any
offer to help you repair your credit. Those who don’t can have their
credit ruined further and create more debt problems.
About The Author
© 2003, Your Free Credit Report Now
Author: James H. Dimmitt.
Get your FREE credit report online now and subscribe to our FREE weekly
newsletter “TO YOUR CREDIT”.
Visit http://www.yourfreecreditreportnow.com for more information.
jimdim815@aol.com
by: James H. Dimmitt
“Erase Bad Debt !”
“Remove Negative Items From Your Report”
You’ve probably seen these headlines and others just like it promising to
clean up or “fix” bad credit. For someone who suffers from a bad or poor
credit rating, these headlines are certainly an appealing offer.
Imagine finally being able to buy that new car, get debt collectors off
your back, and enjoy a new found freedom from your past debts.
Sound to good to be true ? It probably is. Once you fall prey to the
credit repair offer and pay the hefty fees involved to clean up your
record, here’s what happens -
1) The credit repair scam artist contacts the credit bureaus and reports
that the negative information in your file is false.
2) The credit bureau removes this negative information from your report
while they investigate the claim.
3) The scam artist will then show you the cleaned up version of your
credit report and “ta-da” your credit history has been fixed!
But here’s what the scammer doesn’t tell or show you. After the credit
bureau completes their investigation the negative information is placed
back on your credit report.
Negative but accurate information cannot be removed from your credit
profile. Only incorrect information can be removed.
Accurate information remains on your credit file for a period of 7 years
from the time it is reported to the credit agencies; a bankruptcy appears
for a 10 year period.
Many legitimate companies exist that can help you with your debt
problems. But how do you spot a scam offer ? Easy, they’ll ask you for
their fees up front. By law, credit repair agencies cannot ask for
payment until they’ve provided the service they promised.
Additionally many states require that a credit repair service, whether
they are for-profit or not-for-profit, must provide you with a detailed
written contract, an explanation of your legal rights, and the
opportunity to cancel any signed contract within 3 days.
Also, be aware that a “credit repair offer” could be an attempt to steal
your identity by getting you to provide personal information such as a
Social Security number, bank account and credit card account numbers.
Always make sure you know who you are dealing with before accepting any
offer to help you repair your credit. Those who don’t can have their
credit ruined further and create more debt problems.
About The Author
© 2003, Your Free Credit Report Now
Author: James H. Dimmitt.
Get your FREE credit report online now and subscribe to our FREE weekly
newsletter “TO YOUR CREDIT”.
Visit http://www.yourfreecreditreportnow.com for more information.
jimdim815@aol.com
Friday, July 17, 2009
9 Tips on Creating a Professional Emailed Job Application
9 Tips on Creating a Professional Emailed Job Application
by: Angela Wu
With the advent of the Internet, many of us have the opportunity to apply
for work through email.
However, just because this is the Internet and email is so fast and
convenient, that does NOT mean you should give up professionalism and
polish!
FIRST IMPRESSIONS COUNT. I recently looked over a few emailed
applications, and let me tell you, it was an eye-opening experience! Here
are a few examples of how *not* to do things...
* One person simply forwarded the job description to the hiring
company. There was no explanatory letter, no name (just some garbled
email address), no nothing. Why should a company want to hire someone
who can't be bothered to make an effort?
* Several people got the name of the hiring party wrong. Some
misspelled it, others substituted someone else's name.
* Spelling mistakes, typos, grammatical errors, and formatting problems
like you wouldn't believe. One person said that her greatest strength
was her attention to 'detal' (should have been 'DETAIL'); another said
it was his responsibility to 'a tent to customers' ('ATTEND to
customers').
It almost goes without saying that you should always follow the
application instructions provided. If you're inquiring or applying for a
job - regardless of whether it's online or in the 'real world' - there
are certain rules of etiquette that apply:
1. GREET THE PERSON. Don't just barge in and start writing. A simple
"Dear ___" is great.
2. CORRECTLY SPELL THE COMPANY NAME AND THAT OF THE HIRING MANAGER. If
you don't know how to spell them, take a few seconds and find out.
3. INDICATE WHAT POSITION YOU'RE APPLYING FOR. Be specific; the
company may be hiring for more than one job.
4. PROVIDE A BRIEF SUMMARY OF YOUR RELEVANT SKILLS. Keep it short and
to the point.
5. CHECK YOUR SPELLING AND GRAMMAR. It takes just a few minutes. If
you are not confident about doing this yourself, ask a friend or
family member to check it over for you.
6. BE COURTEOUS! Don't make demands. Remember that the *only* thing
the hiring manager sees is your email - he or she can't see your
facial expressions or body language, so take extra care in the words
you select and how you put them together.
7. FORMAT YOUR EMAIL TO 60 CHARACTERS PER LINE. Many email programs
automatically 'word-wrap' somewhere between 60 and 70 characters. Add
a hard return when you reach 60 characters on a line; this will ensure
the company gets a nicely formatted application, just like you
intended.
8. TELL THEM HOW TO CONTACT YOU. As the bare minimum, leave your phone
number and email address.
9. AND FOR GOODNESS SAKES, TELL THEM YOUR *NAME*. This is so obvious
it's painful, yet I've seen dozens of applications there are not
signed. End your letter with 'Sincerely', 'Regards' or 'Yours Truly',
and then sign your name.
Competition for home based jobs is fierce, and companies can afford to be
choosy. Don't give them a reason to pass you by! Professionalism still
counts - even on the web.
About The Author
Angela is the editor of Online Business Basics, a practical guide for
eBusiness beginners. You can find OBB along with solid home business
ideas, freelance and telecommuting job updates, free magazine
subscriptions, and much more at eWorkingWomen, http://www.eworkingwomen.com/join.html. Come find out how you too can
work from home!
by: Angela Wu
With the advent of the Internet, many of us have the opportunity to apply
for work through email.
However, just because this is the Internet and email is so fast and
convenient, that does NOT mean you should give up professionalism and
polish!
FIRST IMPRESSIONS COUNT. I recently looked over a few emailed
applications, and let me tell you, it was an eye-opening experience! Here
are a few examples of how *not* to do things...
* One person simply forwarded the job description to the hiring
company. There was no explanatory letter, no name (just some garbled
email address), no nothing. Why should a company want to hire someone
who can't be bothered to make an effort?
* Several people got the name of the hiring party wrong. Some
misspelled it, others substituted someone else's name.
* Spelling mistakes, typos, grammatical errors, and formatting problems
like you wouldn't believe. One person said that her greatest strength
was her attention to 'detal' (should have been 'DETAIL'); another said
it was his responsibility to 'a tent to customers' ('ATTEND to
customers').
It almost goes without saying that you should always follow the
application instructions provided. If you're inquiring or applying for a
job - regardless of whether it's online or in the 'real world' - there
are certain rules of etiquette that apply:
1. GREET THE PERSON. Don't just barge in and start writing. A simple
"Dear ___" is great.
2. CORRECTLY SPELL THE COMPANY NAME AND THAT OF THE HIRING MANAGER. If
you don't know how to spell them, take a few seconds and find out.
3. INDICATE WHAT POSITION YOU'RE APPLYING FOR. Be specific; the
company may be hiring for more than one job.
4. PROVIDE A BRIEF SUMMARY OF YOUR RELEVANT SKILLS. Keep it short and
to the point.
5. CHECK YOUR SPELLING AND GRAMMAR. It takes just a few minutes. If
you are not confident about doing this yourself, ask a friend or
family member to check it over for you.
6. BE COURTEOUS! Don't make demands. Remember that the *only* thing
the hiring manager sees is your email - he or she can't see your
facial expressions or body language, so take extra care in the words
you select and how you put them together.
7. FORMAT YOUR EMAIL TO 60 CHARACTERS PER LINE. Many email programs
automatically 'word-wrap' somewhere between 60 and 70 characters. Add
a hard return when you reach 60 characters on a line; this will ensure
the company gets a nicely formatted application, just like you
intended.
8. TELL THEM HOW TO CONTACT YOU. As the bare minimum, leave your phone
number and email address.
9. AND FOR GOODNESS SAKES, TELL THEM YOUR *NAME*. This is so obvious
it's painful, yet I've seen dozens of applications there are not
signed. End your letter with 'Sincerely', 'Regards' or 'Yours Truly',
and then sign your name.
Competition for home based jobs is fierce, and companies can afford to be
choosy. Don't give them a reason to pass you by! Professionalism still
counts - even on the web.
About The Author
Angela is the editor of Online Business Basics, a practical guide for
eBusiness beginners. You can find OBB along with solid home business
ideas, freelance and telecommuting job updates, free magazine
subscriptions, and much more at eWorkingWomen, http://www.eworkingwomen.com/join.html. Come find out how you too can
work from home!
Thursday, July 16, 2009
After July 8, Pay This Amount...
After July 8, Pay This Amount...
by: Robert F. Abbott
You undoubtedly go through this, too. A few times a month you gather up
the bills coming due and write checks or pay them online.
As I was doing some bill payments recently, I noticed the tactic one
company uses to get its customers to pay by the due date. It was very
simple: "If you pay by this date, pay this amount. If you pay after this
date, pay this amount."
Now, this was a small bill so the penalty for paying beyond the due date
was just a matter of a few pennies, but still, I got the point.
While other companies might list the late charge in percentage terms,
this one wisely adopted the dollars and cents approach.
We see here a case in which a company crosses the sometimes critical
divide between the abstract and the concrete. Listing a percentage fee
shows the penalty in abstract terms. Listing it in dollars and cents
shows the penalty in concrete terms.
I don't know about you, but I'm certainly more sensitive to the dollars
and cents than to a percentage, if I'm late making my payment. How about
you: would you feel more motivated to pay on time if it costs $1.17 or if
it costs 2.5% per month?
As communicators, we should remain alert to the differences between the
abstract and the concrete. It's sometimes a subtle difference, but a
critical one.
Here are a couple of applications of these differences:
When you give instructions, try to work on the concrete side of the
abstract-concrete continuum. For example, if you ask a subordinate to
carry out a task, then provide details and specifics. In many cases, this
might be summed up with four of the five Ws: Who, What, Where, and When,
as well as How (we'll get the fifth W in a moment).
Or, if you're selling, aim to be more concrete than abstract. For
example, I've been writing short ads for my book about newsletters. In
writing them, I've found that "Communicating for Results" isn't enough by
itself -- I need to spell out what those results might be (such as more
sales, greater employee retention, and better membership renewal ratios).
On the other hand, if you want to provide context, you might find it more
productive to move more toward the abstract end of the abstract-concrete
continuum. For example, if you're trying to explain a new strategic
direction for your organization, you might refer to conceptual issues
like positioning and competitive advantage. This, you'll find, is where
Why? -- the fifth W -- fits rather nicely.
In a sales situation, you may want to get a prospect to envision a new
and better future. In that case, too, you would emphasize the abstract,
rather than the concrete. For example, if you're selling a retirement
fund, you would likely emphasize the idea of spending more time on
tropical islands or with family, rather than going into actuarial details.
Finally, remember that abstract and concrete represent two ends of a
continuum, and you can choose any point between them.
About The Author
Robert F. Abbott, the author of A Manager's Guide to Newsletters:
Communicating for Results, writes about business communication issues in
the free online ezine, Abbott's Communication Letter
http://www.abbottletter.com
abbottr@managersguide.com
by: Robert F. Abbott
You undoubtedly go through this, too. A few times a month you gather up
the bills coming due and write checks or pay them online.
As I was doing some bill payments recently, I noticed the tactic one
company uses to get its customers to pay by the due date. It was very
simple: "If you pay by this date, pay this amount. If you pay after this
date, pay this amount."
Now, this was a small bill so the penalty for paying beyond the due date
was just a matter of a few pennies, but still, I got the point.
While other companies might list the late charge in percentage terms,
this one wisely adopted the dollars and cents approach.
We see here a case in which a company crosses the sometimes critical
divide between the abstract and the concrete. Listing a percentage fee
shows the penalty in abstract terms. Listing it in dollars and cents
shows the penalty in concrete terms.
I don't know about you, but I'm certainly more sensitive to the dollars
and cents than to a percentage, if I'm late making my payment. How about
you: would you feel more motivated to pay on time if it costs $1.17 or if
it costs 2.5% per month?
As communicators, we should remain alert to the differences between the
abstract and the concrete. It's sometimes a subtle difference, but a
critical one.
Here are a couple of applications of these differences:
When you give instructions, try to work on the concrete side of the
abstract-concrete continuum. For example, if you ask a subordinate to
carry out a task, then provide details and specifics. In many cases, this
might be summed up with four of the five Ws: Who, What, Where, and When,
as well as How (we'll get the fifth W in a moment).
Or, if you're selling, aim to be more concrete than abstract. For
example, I've been writing short ads for my book about newsletters. In
writing them, I've found that "Communicating for Results" isn't enough by
itself -- I need to spell out what those results might be (such as more
sales, greater employee retention, and better membership renewal ratios).
On the other hand, if you want to provide context, you might find it more
productive to move more toward the abstract end of the abstract-concrete
continuum. For example, if you're trying to explain a new strategic
direction for your organization, you might refer to conceptual issues
like positioning and competitive advantage. This, you'll find, is where
Why? -- the fifth W -- fits rather nicely.
In a sales situation, you may want to get a prospect to envision a new
and better future. In that case, too, you would emphasize the abstract,
rather than the concrete. For example, if you're selling a retirement
fund, you would likely emphasize the idea of spending more time on
tropical islands or with family, rather than going into actuarial details.
Finally, remember that abstract and concrete represent two ends of a
continuum, and you can choose any point between them.
About The Author
Robert F. Abbott, the author of A Manager's Guide to Newsletters:
Communicating for Results, writes about business communication issues in
the free online ezine, Abbott's Communication Letter
http://www.abbottletter.com
abbottr@managersguide.com
Wednesday, July 15, 2009
Perspective Please...
Perspective Please...
by: Marcus Garcia
[http://www.addthis.com/bookmark.php]
I just logged on to CNN.com and found a Breaking News headline that read:
“Regulators shut six more banks; closures for 2009 reach 51, more than
twice as many as all of last year.”
And for good measure this headline was in a big bright red box at the top
of the page to make sure I noticed it…and noticed that it was probably
bad news.
It certainly isn’t good news. So I guess that makes it bad news. Of
course that begs the question of just exactly how bad this news really
is. The way this headline reads one would assume it is catastrophically
bad news.
If I was a lawyer and this information was introduced by opposing council
I would object to it on the grounds that it is “leading the witness”.
(For the record, I’m not a lawyer; but I’ve watched so many episodes of
Boston Legal that I think I could be.)
All of this got me to wondering how many people read that headline,
swallowed it whole and are now sitting depressed in their homes awaiting
some impending doom. And further, how many of us actually stop to think
deeply and critically about the information that is fed to us in today's
24/7 non-stop news cycle?
So in the interest of trying to preserve everyone’s sanity…what do you
say we actually put this headline into broader perspective and see what
happens?
By the way…since I first saw this “Breaking News” announcement, the
number was corrected upwards to a total of 52 failed banks in what is
essentially the first half of 2009 vs. a total of 25 bank failures in all
of 2008.
That’s not good.
How “not good” is it? To have any understanding of that we need to ask a
few questions…
Question one: what does the number 52 represent relative to all banks? Is
that a big number? Is that a small number? Is it half? With no
perspective it doesn’t really mean anything.
So let’s get some perspective.
There are approximately 8,300 FDIC insured banks today. Thus, 52 banks
represent a failure rate of 0.0063%.
That doesn’t sound so scary.
But the media is fond of ensuring that nobody forgets that we are in the
worst economic crisis since the great depression and absolutely the worst
recession in the past 25 years.
That sounds scary; and it leads us to our next question…
Question 2: how does today’s number of bank failures compare to bank
failures during the great depression? And how does it compare to bank
failures during the recession that started in the 1980’s?
Have a look at these two charts both of which are from a site called
Calculated Risk (a very worthwhile site to visit I might add):
This one shows the number of bank and thrift failures dating back to
1921. This data includes banking failures from 1921 to 1933 which was
prior to the formation of the FDIC. The FDIC was formed Jan 1, 1934
specifically to insure bank deposits and to bolster confidence in the US
Financial System in response to the thousands (yes, thousands) of bank
failures during the 1920’s and early 30’s.
52 bank failures is barely a blip on the radar compared to depression era
bank failures; which were literally thousands per year. The same is true
relative to bank failures from the recession that started in the 1980’s
which included more than 500 bank failures in 1989 alone.
Even if we continue at the same pace (or an accelerated pace) we aren’t
going to come close to the number of bank failures that took place back
in the 80’s and 90’s.
Maybe it’s not so scary after all; and that leads us to our third
question…
Question 3: if it isn’t scary then what is it? Besides providing
confirmation of a recession we already know we are in, what does any of
this tell us?
Good question.
The best answer that I could find is that it doesn’t really tell us much
of anything. If you take a look at this chart you’ll see that there is no
systematic relationship between FDIC interventions and annual US stock
returns. (You can even check out the pretty scatter diagram complete with
the Pearson correlation and the R2 statistic if you are totally into
overly complex statistical modeling)
In fact, the FDIC bank intervention rate can only explain about 1% of the
variation in stock returns, even when you include the extreme
intervention cases during the great depression and the recession during
the 80’s.
In other words…this news, while being newsworthy, is not a predictor of
anything. In this case, it’s just news. Like the score of a baseball
game; it has no bearing on what the score will be tomorrow.
So what should we do with all this new found perspective?
First…can we please stop beating this dead horse? We’re in a recession.
We know already. You don’t have to tell me all day, every day.
Second…did you notice we got out of that last recession without
nationalizing everything under the sun? Can we stop with all the auto
bailouts, the farming subsidies, the idiotic stimulus spending projects
(like under highway turtle crossings…not joking) for a while and see if
this patient (the economy) really needs more of that medicine? You do
realize there is such a thing as over-medicating don’t you?
And finally…relax. We say the economy is cyclical for a reason; that
being that when the economy needs to correct it will swing down, the
market corrects, and then it goes up again. Always has...and if we let
it...always will.
So why don’t we let the mechanism that has worked for the past 200 years
- a free(ish) market – get us the rest of the way back.
Otherwise I’m afraid the number 52 is going to become awfully scary;
because it will no longer be a 0.0063% failure rate…it will be our tax
rate.
About The Author
economics politics society
The author invites you to visit: http://www.mandatorymarcus.blogspot.com
by: Marcus Garcia
[http://www.addthis.com/bookmark.php]
I just logged on to CNN.com and found a Breaking News headline that read:
“Regulators shut six more banks; closures for 2009 reach 51, more than
twice as many as all of last year.”
And for good measure this headline was in a big bright red box at the top
of the page to make sure I noticed it…and noticed that it was probably
bad news.
It certainly isn’t good news. So I guess that makes it bad news. Of
course that begs the question of just exactly how bad this news really
is. The way this headline reads one would assume it is catastrophically
bad news.
If I was a lawyer and this information was introduced by opposing council
I would object to it on the grounds that it is “leading the witness”.
(For the record, I’m not a lawyer; but I’ve watched so many episodes of
Boston Legal that I think I could be.)
All of this got me to wondering how many people read that headline,
swallowed it whole and are now sitting depressed in their homes awaiting
some impending doom. And further, how many of us actually stop to think
deeply and critically about the information that is fed to us in today's
24/7 non-stop news cycle?
So in the interest of trying to preserve everyone’s sanity…what do you
say we actually put this headline into broader perspective and see what
happens?
By the way…since I first saw this “Breaking News” announcement, the
number was corrected upwards to a total of 52 failed banks in what is
essentially the first half of 2009 vs. a total of 25 bank failures in all
of 2008.
That’s not good.
How “not good” is it? To have any understanding of that we need to ask a
few questions…
Question one: what does the number 52 represent relative to all banks? Is
that a big number? Is that a small number? Is it half? With no
perspective it doesn’t really mean anything.
So let’s get some perspective.
There are approximately 8,300 FDIC insured banks today. Thus, 52 banks
represent a failure rate of 0.0063%.
That doesn’t sound so scary.
But the media is fond of ensuring that nobody forgets that we are in the
worst economic crisis since the great depression and absolutely the worst
recession in the past 25 years.
That sounds scary; and it leads us to our next question…
Question 2: how does today’s number of bank failures compare to bank
failures during the great depression? And how does it compare to bank
failures during the recession that started in the 1980’s?
Have a look at these two charts both of which are from a site called
Calculated Risk (a very worthwhile site to visit I might add):
This one shows the number of bank and thrift failures dating back to
1921. This data includes banking failures from 1921 to 1933 which was
prior to the formation of the FDIC. The FDIC was formed Jan 1, 1934
specifically to insure bank deposits and to bolster confidence in the US
Financial System in response to the thousands (yes, thousands) of bank
failures during the 1920’s and early 30’s.
52 bank failures is barely a blip on the radar compared to depression era
bank failures; which were literally thousands per year. The same is true
relative to bank failures from the recession that started in the 1980’s
which included more than 500 bank failures in 1989 alone.
Even if we continue at the same pace (or an accelerated pace) we aren’t
going to come close to the number of bank failures that took place back
in the 80’s and 90’s.
Maybe it’s not so scary after all; and that leads us to our third
question…
Question 3: if it isn’t scary then what is it? Besides providing
confirmation of a recession we already know we are in, what does any of
this tell us?
Good question.
The best answer that I could find is that it doesn’t really tell us much
of anything. If you take a look at this chart you’ll see that there is no
systematic relationship between FDIC interventions and annual US stock
returns. (You can even check out the pretty scatter diagram complete with
the Pearson correlation and the R2 statistic if you are totally into
overly complex statistical modeling)
In fact, the FDIC bank intervention rate can only explain about 1% of the
variation in stock returns, even when you include the extreme
intervention cases during the great depression and the recession during
the 80’s.
In other words…this news, while being newsworthy, is not a predictor of
anything. In this case, it’s just news. Like the score of a baseball
game; it has no bearing on what the score will be tomorrow.
So what should we do with all this new found perspective?
First…can we please stop beating this dead horse? We’re in a recession.
We know already. You don’t have to tell me all day, every day.
Second…did you notice we got out of that last recession without
nationalizing everything under the sun? Can we stop with all the auto
bailouts, the farming subsidies, the idiotic stimulus spending projects
(like under highway turtle crossings…not joking) for a while and see if
this patient (the economy) really needs more of that medicine? You do
realize there is such a thing as over-medicating don’t you?
And finally…relax. We say the economy is cyclical for a reason; that
being that when the economy needs to correct it will swing down, the
market corrects, and then it goes up again. Always has...and if we let
it...always will.
So why don’t we let the mechanism that has worked for the past 200 years
- a free(ish) market – get us the rest of the way back.
Otherwise I’m afraid the number 52 is going to become awfully scary;
because it will no longer be a 0.0063% failure rate…it will be our tax
rate.
About The Author
economics politics society
The author invites you to visit: http://www.mandatorymarcus.blogspot.com
Tuesday, July 14, 2009
Do You Really Need the Services of a Loan Modification Company?
Do You Really Need the Services of a Loan Modification Company?
by: Bridget Toomey
Every homeowner who is thinking of modifying their existing mortgage in
order to save their home from foreclosure is probably wondering whether
they should apply for a loan modification on their own or utilize the
services of a loan modification company.
The arguments for and against using a loan modification company always
comes down to two factors – time and money. If you study those two
factors carefully, you will realize that it makes more sense to take help
from a professional loan modification company or consultant to process
and handle the loan modification application.
Time
Let us take the first factor into consideration which is of time. Loan
modifications take a long time to complete. Even before you complete your
application, there are a number of things you need to do to give yourself
the best chance at a modification. Studying the correct prescribed format
set by the bank, arranging for all the required documents, following up
with the bank to make sure you have all paperwork completed properly
before applying for a loan modification etc.
Once you do file your application, then it takes a considerable amount of
time before you even start the negotiations with your mortgage lender.
The overall modification process takes a minimum of 90-120 days to
complete and you need to follow up with your lender at least once a week
to make sure your lender stays on top of your loan. In addition, you need
to constantly make your lender aware of your current situation, repeat
why you need to modify your loan, check on what are the best possible
modified loan packages being offered by your lender etc. Given the
millions of applications received by lenders already, it is imperative
that you follow up on your application to make sure it doesn’t fall to
the back of the line or worst canceled out of their system if you don’t
follow up.
You will also have to take time from work to make sure you call your
lender during business hours because that is typically when any
processors or negotiators work on modification files. Given the state of
the economy, it is not a good idea to take frequent time away from your
work as you don’t want to risk losing your job altogether. If any of the
points above apply to you, it is probably better if you have a
professional loan modification consultant do all this work for you. Let
them run around the lenders and get them to discuss and negotiate a
modified mortgage plan on your behalf.
This not only saves you a lot of time which you can utilize for much more
constructive things, it also gives you a chance for a better modification
as a professional loan modification consultant will be able to work the
lender for the best possible modification. Furthermore, imagine if you
spend months calling your lender just to learn later that your
application has been rejected. All the hard work will go to waste and it
is better you let a professional handle the application while you
concentrate on your work and family.
Money
Most families are aware of the time factor of loan modifications. Yet
they choose to modify the loans themselves as they are not in a position
to pay the huge upfront fees charged by the loan modification companies.
Of course the number of scams that have been reported lately has also
been a big factor in homeowners choosing to modify their loan on their
own.
The fact however, is that there are a few companies who absolutely do not
charge any kind of fees until your loan modification is actually approved
by your lender. This means that you do not have to pay anything upfront
until you know that you have a loan modification approved by your lender.
This makes it so much easier for you as not only do you save on time, you
save on paying a company an upfront fee until you absolutely know your
lender will be able to modify your loan and make it affordable for you to
live in your home.
It is highly advisable that you search for such companies who guarantee
no fees until your application is approved by your lender and utilize
their services to apply for a loan modification.
About The Author
Bridget Toomey is the founder of The Loan Modification Foundation, a home
loan modification company backed by attorneys and real estate consultants
specializing in loan resolution and modification services. We guarantee
no fees until your Loan Modification is approved by your mortgage lender.
For more information visit www.LoanModificationFoundation.com
The author invites you to visit: http://www.loanmodificationfoundation.com
by: Bridget Toomey
Every homeowner who is thinking of modifying their existing mortgage in
order to save their home from foreclosure is probably wondering whether
they should apply for a loan modification on their own or utilize the
services of a loan modification company.
The arguments for and against using a loan modification company always
comes down to two factors – time and money. If you study those two
factors carefully, you will realize that it makes more sense to take help
from a professional loan modification company or consultant to process
and handle the loan modification application.
Time
Let us take the first factor into consideration which is of time. Loan
modifications take a long time to complete. Even before you complete your
application, there are a number of things you need to do to give yourself
the best chance at a modification. Studying the correct prescribed format
set by the bank, arranging for all the required documents, following up
with the bank to make sure you have all paperwork completed properly
before applying for a loan modification etc.
Once you do file your application, then it takes a considerable amount of
time before you even start the negotiations with your mortgage lender.
The overall modification process takes a minimum of 90-120 days to
complete and you need to follow up with your lender at least once a week
to make sure your lender stays on top of your loan. In addition, you need
to constantly make your lender aware of your current situation, repeat
why you need to modify your loan, check on what are the best possible
modified loan packages being offered by your lender etc. Given the
millions of applications received by lenders already, it is imperative
that you follow up on your application to make sure it doesn’t fall to
the back of the line or worst canceled out of their system if you don’t
follow up.
You will also have to take time from work to make sure you call your
lender during business hours because that is typically when any
processors or negotiators work on modification files. Given the state of
the economy, it is not a good idea to take frequent time away from your
work as you don’t want to risk losing your job altogether. If any of the
points above apply to you, it is probably better if you have a
professional loan modification consultant do all this work for you. Let
them run around the lenders and get them to discuss and negotiate a
modified mortgage plan on your behalf.
This not only saves you a lot of time which you can utilize for much more
constructive things, it also gives you a chance for a better modification
as a professional loan modification consultant will be able to work the
lender for the best possible modification. Furthermore, imagine if you
spend months calling your lender just to learn later that your
application has been rejected. All the hard work will go to waste and it
is better you let a professional handle the application while you
concentrate on your work and family.
Money
Most families are aware of the time factor of loan modifications. Yet
they choose to modify the loans themselves as they are not in a position
to pay the huge upfront fees charged by the loan modification companies.
Of course the number of scams that have been reported lately has also
been a big factor in homeowners choosing to modify their loan on their
own.
The fact however, is that there are a few companies who absolutely do not
charge any kind of fees until your loan modification is actually approved
by your lender. This means that you do not have to pay anything upfront
until you know that you have a loan modification approved by your lender.
This makes it so much easier for you as not only do you save on time, you
save on paying a company an upfront fee until you absolutely know your
lender will be able to modify your loan and make it affordable for you to
live in your home.
It is highly advisable that you search for such companies who guarantee
no fees until your application is approved by your lender and utilize
their services to apply for a loan modification.
About The Author
Bridget Toomey is the founder of The Loan Modification Foundation, a home
loan modification company backed by attorneys and real estate consultants
specializing in loan resolution and modification services. We guarantee
no fees until your Loan Modification is approved by your mortgage lender.
For more information visit www.LoanModificationFoundation.com
The author invites you to visit: http://www.loanmodificationfoundation.com
Monday, July 13, 2009
Unsecured Personal Loan: The Loan For Everyone
Unsecured Personal Loan: The Loan For Everyone
by: Rick Goldfeller
You’re probably reading this article because you’ve been rejected by
countless creditors. You’re desperate need for money and somebody to lend
it is what drove you to the internet, in search for the answer to you
problems. Well you came to the right place, my financially crippled
friend, coz I’ve got good news for you: you’ll finally be able to get
your hands on the cash you need to get out of the overwhelming debt
problems you’re handling. The answer to your worries is the unsecured
personal loan. Here, there’s no need to place assets for collateral,
well, coz the service doesn’t require any.
This is great for those not owning a house of their own, renting, or
having plans of living with their parents for the rest of their lives.
You may be having serious hesitations due to the rejection you’ve been
receiving from bountiful money lenders everywhere, right? Well it’s
probably coz they’re only offering secured loans, and not the unsecured
personal loan service. You’ve probably got rejected on spot for the bad
credit history you’ve worked “hard” to achieve – creditors do get second
thoughts when they see a pathetic FICO score, and a long history of
default payments and bad accounts.
That won’t be an issue with the unsecured personal loan, given the fact
that they can lend money to almost anybody with a job, regardless of your
cred record. Another thing that you may hate about borrowing dough from
some fancy organization is the idea of you waiting some time for the
approval of the money that’ll be extended to you. This is true, since
it’ll take time for them to evaluate the asset you’ve placed as
collateral for availing the cash you intend to borrow. As I’ve said
earlier, there isn’t any need whatsoever to put up security, which means
that there won’t be an asset evaluation process to be conducted.
That ultimately means that the time you get approved for the unsecured
personal loan is much faster. In some cases, you can get the money as
early as the day you’ve applied for it – ain’t that great? Now, you don’t
have to get yourself into some financial crisis in order to apply for the
said service. Here, you’re given the freedom to do whatever you please
with what you’ve borrowed. Whether it’s paying for a child’s tuition,
paying the bills, buying grocery items, or even paying off other debts,
feel free to do what you want with it – just as long as you pay it back.
Having brought that up, one method that you make use of is known as
unsecured debt consolidation loan. What’s done here is you take the
multiple running debts you’ve occurred and combine them as one – this
means you’ll be making single monthly to pay all of them off. But before
you leap for joy, there’s one thing that you need to know: the annual
percentage rate charged here has to be raised. That means you’ll be
paying more interest here than you would if you were to go for the
secured type of loan (which isn’t an option if you don’t have any valid
assets to use as security).
The best thing for you to do would be to shop around for a lender
offering the best rates and terms. That way you’ll be making the most of
your efforts, and won’t end up paying for more than what you have to.
About The Author
The author of this article Rick Goldfeller is a successful underground
Financial Analyst who has been advising and coaching individuals for many
years. Rick recently published a book on how to manage your money and
attract Wealth and Financial Freedom. More info on his Finance Planning
course is available at http://www.SaveWhileYouSpend.com.
The author invites you to visit: http://www.finanzine.com
by: Rick Goldfeller
You’re probably reading this article because you’ve been rejected by
countless creditors. You’re desperate need for money and somebody to lend
it is what drove you to the internet, in search for the answer to you
problems. Well you came to the right place, my financially crippled
friend, coz I’ve got good news for you: you’ll finally be able to get
your hands on the cash you need to get out of the overwhelming debt
problems you’re handling. The answer to your worries is the unsecured
personal loan. Here, there’s no need to place assets for collateral,
well, coz the service doesn’t require any.
This is great for those not owning a house of their own, renting, or
having plans of living with their parents for the rest of their lives.
You may be having serious hesitations due to the rejection you’ve been
receiving from bountiful money lenders everywhere, right? Well it’s
probably coz they’re only offering secured loans, and not the unsecured
personal loan service. You’ve probably got rejected on spot for the bad
credit history you’ve worked “hard” to achieve – creditors do get second
thoughts when they see a pathetic FICO score, and a long history of
default payments and bad accounts.
That won’t be an issue with the unsecured personal loan, given the fact
that they can lend money to almost anybody with a job, regardless of your
cred record. Another thing that you may hate about borrowing dough from
some fancy organization is the idea of you waiting some time for the
approval of the money that’ll be extended to you. This is true, since
it’ll take time for them to evaluate the asset you’ve placed as
collateral for availing the cash you intend to borrow. As I’ve said
earlier, there isn’t any need whatsoever to put up security, which means
that there won’t be an asset evaluation process to be conducted.
That ultimately means that the time you get approved for the unsecured
personal loan is much faster. In some cases, you can get the money as
early as the day you’ve applied for it – ain’t that great? Now, you don’t
have to get yourself into some financial crisis in order to apply for the
said service. Here, you’re given the freedom to do whatever you please
with what you’ve borrowed. Whether it’s paying for a child’s tuition,
paying the bills, buying grocery items, or even paying off other debts,
feel free to do what you want with it – just as long as you pay it back.
Having brought that up, one method that you make use of is known as
unsecured debt consolidation loan. What’s done here is you take the
multiple running debts you’ve occurred and combine them as one – this
means you’ll be making single monthly to pay all of them off. But before
you leap for joy, there’s one thing that you need to know: the annual
percentage rate charged here has to be raised. That means you’ll be
paying more interest here than you would if you were to go for the
secured type of loan (which isn’t an option if you don’t have any valid
assets to use as security).
The best thing for you to do would be to shop around for a lender
offering the best rates and terms. That way you’ll be making the most of
your efforts, and won’t end up paying for more than what you have to.
About The Author
The author of this article Rick Goldfeller is a successful underground
Financial Analyst who has been advising and coaching individuals for many
years. Rick recently published a book on how to manage your money and
attract Wealth and Financial Freedom. More info on his Finance Planning
course is available at http://www.SaveWhileYouSpend.com.
The author invites you to visit: http://www.finanzine.com
Sunday, July 12, 2009
Seller Financing is BAD – Right?
Seller Financing is BAD – Right?
by: Dean Dretske
The real answer is ‘it depends’. It depends on the situation and the
parties involved in the transaction. Let’s talk about it from the
Seller’s perspective and the Buyer’s perspective. We’ll also talk about
the investor’s perspective in each of these roles. Remember, I am an
investor, not an accountant – please check with your own accountant to
confirm how this would apply to your own situation!
For the purposes of our discussion, suppose that a house sells for $150K
and the seller takes back $100K as a mortgage as part of the sale (the
buyer pays the other $50K as cash to keep this simple). The Seller owned
this property free and clear – or owed less than the net cash received.
Say the note has an interest rate of 6%, interest only payments (or
more), with a balloon payment of the outstanding balance in 15 years.
This makes the payments equal $500 per month – assuming only the interest
is paid.
Seller – The Good:
The Seller can reduce the amount of tax they pay on the sale. When the
Seller ‘takes back paper’ at the sale, that part of the equity of the
house is not counted towards their capital gain. As payments come in over
time, the principal received in each tax period is considered a capital
gain for that tax period. Since our note is interest only payments, the
$100K capital gain will be deferred for 15 years. This means that a
seller can lower the tax they would need to pay for the house sale – both
immediately and possibly as a total over time.
The seller gains an income stream from the note. For the next 15 years,
the Seller will have $500 each month to spend – minus ordinary income tax
(which will depend on the Sellers financial situation). The Seller
actually makes more money for the sale of the house. The total amount
this Seller earns is $150K + 15 years * $6000/yr = $240K.
As an investor Seller, this kind of financing can help you stabilize your
income stream and result in better returns on your initial investment.
Also, by offering seller financing, you may be able to demand a higher
sales price at the time of the sale.
Seller – The Bad:
The Seller is still ‘attached’ to the house for the length of time that
the note is collateralized by the house. This can be bad if the quality
of the house is suspect, or the neighborhood value is declining – as the
house decays or the defects are discovered, the security for the note
(the house) looses value. This can be countered by requiring a larger
down payment, charging a higher interest rate or doing more qualifying of
the Buyer. For example, a Buyer who lives in the property is generally
more likely to maintain or improve the property while a non-occupying
Buyer may not have the same incentive to maintain the property (and the
renter likely has no incentive at all).
The Seller may not receive payments on time. Ultimately, the Seller can
solve this by foreclosing – which is a process defined by the area where
the house is located. For example, in Washington the foreclosure process
takes about 4 months while in Oklahoma it averages about 7 months. During
this time, the Seller will not receive payments and the house may be
vacant or damaged. Again, the Seller can mitigate some of these risks by
requiring larger down payments or charging higher interest rates. In our
example, the $50K down payment can mitigate some losses. For instance, if
the payments stop and it takes a year to foreclose, the Seller will have
lost out on $6K worth of payments. Since the foreclosure process is not
free, let’s assume $10K cost (remember that the cost will depend on the
location of the property). This means that the Seller still has $34K in
cash and now can resell the property. If the Seller can sell the house
for more than $116K, then the Seller is still ahead (remember to also add
the amount of payments that were received prior to the foreclosure).
As a rehabber, I feel that investor sellers can also mitigate the quality
/ damage issues more easily than a homeowner. Part of a rehabber’s job is
to manage the quality and costs of repairs and to focus our buying in
areas of town that are more likely to appreciate.
Buyer – The Good:
It can be easier for a Buyer to qualify for the loan. Mostly because the
lender has already qualified the property – the lender/seller agrees on
the current value of the property and they have some history with the
property’s quality. Additionally, many Sellers do not require as much
documentation as an institutional lender would require to qualify the
Buyer. Institutional lenders have a process that they use to qualify
Buyers – this process is supposed to reduce the risk to the lender (the
current economic situation was caused by a loosening of this process).
Most sellers who do Seller Financing don’t have a process but instead do
just enough to feel comfortable with the Buyer’s promise to pay.
Seller Financing can reduce the amount of money needed to buy a property.
Some financing situations can result in zero down payment. For example,
in a ’subject to’ purchase, the seller may loan you all of their equity.
For example, the seller may owe $100K on a house that is in disrepair.
This house may require $20K of repairs and when fixed up may be worth
$200K. A deal could be crafted for a total of $120K where the Buyer takes
over payments on the $100K and owes the Seller $20K (to be paid when the
Buyer completes repairs and refinances or sells the house).
Seller Financing allows an investor to buy a wider range of properties.
An institutional lender may not qualify a property if it is in need of
some serious rehab work. As an investor Buyer, this means that I may not
be able to get a bank to lend me the money needed to buy the property
(they may be more accommodating for construction loans, but there are
limitations there as well).
Seller Financing allows an investor to hold more properties. Currently,
institutional lenders limit the number of loans that a Buyer may have in
their name. As an investor Buyer, this limits the number of properties
you can own at any one time. The current limit is actually 10, but the
qualifying process for more than 4 loans is very difficult – making a
practical limit of 4 loans. Most Sellers don’t have similar limitations
and Seller financing often does not show on a credit report, so this can
be a nice way to avoid this limitation.
Buyer – The Bad:
It can be difficult to find a Seller that is willing to accept Seller
Financing. The most common objection I hear is that they just want to
cash out. When I dig deeper, often the resistance comes from not really
understanding the good and bad aspects (Why did I write this article?!).
About The Author
Dean Dretske invites you to subscribe for more real estate tips and to
learn about available properties at http://www.MoneyMakingProperties.com. Subscribe now and get a free
report that will help your investing!
The author invites you to visit: http://www.RealEstateForFunAndProfit.com
by: Dean Dretske
The real answer is ‘it depends’. It depends on the situation and the
parties involved in the transaction. Let’s talk about it from the
Seller’s perspective and the Buyer’s perspective. We’ll also talk about
the investor’s perspective in each of these roles. Remember, I am an
investor, not an accountant – please check with your own accountant to
confirm how this would apply to your own situation!
For the purposes of our discussion, suppose that a house sells for $150K
and the seller takes back $100K as a mortgage as part of the sale (the
buyer pays the other $50K as cash to keep this simple). The Seller owned
this property free and clear – or owed less than the net cash received.
Say the note has an interest rate of 6%, interest only payments (or
more), with a balloon payment of the outstanding balance in 15 years.
This makes the payments equal $500 per month – assuming only the interest
is paid.
Seller – The Good:
The Seller can reduce the amount of tax they pay on the sale. When the
Seller ‘takes back paper’ at the sale, that part of the equity of the
house is not counted towards their capital gain. As payments come in over
time, the principal received in each tax period is considered a capital
gain for that tax period. Since our note is interest only payments, the
$100K capital gain will be deferred for 15 years. This means that a
seller can lower the tax they would need to pay for the house sale – both
immediately and possibly as a total over time.
The seller gains an income stream from the note. For the next 15 years,
the Seller will have $500 each month to spend – minus ordinary income tax
(which will depend on the Sellers financial situation). The Seller
actually makes more money for the sale of the house. The total amount
this Seller earns is $150K + 15 years * $6000/yr = $240K.
As an investor Seller, this kind of financing can help you stabilize your
income stream and result in better returns on your initial investment.
Also, by offering seller financing, you may be able to demand a higher
sales price at the time of the sale.
Seller – The Bad:
The Seller is still ‘attached’ to the house for the length of time that
the note is collateralized by the house. This can be bad if the quality
of the house is suspect, or the neighborhood value is declining – as the
house decays or the defects are discovered, the security for the note
(the house) looses value. This can be countered by requiring a larger
down payment, charging a higher interest rate or doing more qualifying of
the Buyer. For example, a Buyer who lives in the property is generally
more likely to maintain or improve the property while a non-occupying
Buyer may not have the same incentive to maintain the property (and the
renter likely has no incentive at all).
The Seller may not receive payments on time. Ultimately, the Seller can
solve this by foreclosing – which is a process defined by the area where
the house is located. For example, in Washington the foreclosure process
takes about 4 months while in Oklahoma it averages about 7 months. During
this time, the Seller will not receive payments and the house may be
vacant or damaged. Again, the Seller can mitigate some of these risks by
requiring larger down payments or charging higher interest rates. In our
example, the $50K down payment can mitigate some losses. For instance, if
the payments stop and it takes a year to foreclose, the Seller will have
lost out on $6K worth of payments. Since the foreclosure process is not
free, let’s assume $10K cost (remember that the cost will depend on the
location of the property). This means that the Seller still has $34K in
cash and now can resell the property. If the Seller can sell the house
for more than $116K, then the Seller is still ahead (remember to also add
the amount of payments that were received prior to the foreclosure).
As a rehabber, I feel that investor sellers can also mitigate the quality
/ damage issues more easily than a homeowner. Part of a rehabber’s job is
to manage the quality and costs of repairs and to focus our buying in
areas of town that are more likely to appreciate.
Buyer – The Good:
It can be easier for a Buyer to qualify for the loan. Mostly because the
lender has already qualified the property – the lender/seller agrees on
the current value of the property and they have some history with the
property’s quality. Additionally, many Sellers do not require as much
documentation as an institutional lender would require to qualify the
Buyer. Institutional lenders have a process that they use to qualify
Buyers – this process is supposed to reduce the risk to the lender (the
current economic situation was caused by a loosening of this process).
Most sellers who do Seller Financing don’t have a process but instead do
just enough to feel comfortable with the Buyer’s promise to pay.
Seller Financing can reduce the amount of money needed to buy a property.
Some financing situations can result in zero down payment. For example,
in a ’subject to’ purchase, the seller may loan you all of their equity.
For example, the seller may owe $100K on a house that is in disrepair.
This house may require $20K of repairs and when fixed up may be worth
$200K. A deal could be crafted for a total of $120K where the Buyer takes
over payments on the $100K and owes the Seller $20K (to be paid when the
Buyer completes repairs and refinances or sells the house).
Seller Financing allows an investor to buy a wider range of properties.
An institutional lender may not qualify a property if it is in need of
some serious rehab work. As an investor Buyer, this means that I may not
be able to get a bank to lend me the money needed to buy the property
(they may be more accommodating for construction loans, but there are
limitations there as well).
Seller Financing allows an investor to hold more properties. Currently,
institutional lenders limit the number of loans that a Buyer may have in
their name. As an investor Buyer, this limits the number of properties
you can own at any one time. The current limit is actually 10, but the
qualifying process for more than 4 loans is very difficult – making a
practical limit of 4 loans. Most Sellers don’t have similar limitations
and Seller financing often does not show on a credit report, so this can
be a nice way to avoid this limitation.
Buyer – The Bad:
It can be difficult to find a Seller that is willing to accept Seller
Financing. The most common objection I hear is that they just want to
cash out. When I dig deeper, often the resistance comes from not really
understanding the good and bad aspects (Why did I write this article?!).
About The Author
Dean Dretske invites you to subscribe for more real estate tips and to
learn about available properties at http://www.MoneyMakingProperties.com. Subscribe now and get a free
report that will help your investing!
The author invites you to visit: http://www.RealEstateForFunAndProfit.com
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