By Marguerite Bonneville
Whether you are an employee or a business owner with his or her own office, you can use feng shui to make your office space more productive and harmonious.
Your first step is to stand at the doorway of your office or workspace and map out the areas according to the feng shui bagua. You can download a diagram of the bagua from our web site.
Your main focus will be your wealth and fame areas, although you should also pay attention to the other six areas and decorate them accordingly.
Here are some tips to keep the energy flowing in your office:
1. According to office feng shui guidelines, your desk should be placed at a diagonal to the doorway or directly facing it, rather than with your back to it.
2. If there's more than one desk, place two on a diagonal facing towards the door and any others on a diagonal facing into the center of the room. They should not be placed in rows in a traditional classroom layout or back to back.
3. If the doorways of offices that face each other across a hallway are not exactly aligned, place a mirror on the front of each door.
4. If you face a partial wall or partition when entering an office, place a mirror on the partition.
5. Soften jutting walls with plants. If you don't have a 'green thumb', artificial plants are just as effective as live ones.
6. Break up dull walls with mirrors or paintings.
The feng shui elements that are easiest to blend into an office decor are pictures and photographs. Look for pictures that represent the various aspects and display them in the appropriate areas of the room. Very obvious feng shui symbols may invite unwelcome questions from visitors or co-workers.
Feng Shui For A Home Office
Use office feng shui if you're working from home to maintain a professional approach to your business.
1. Use a separate entrance to your office if at all possible.
2. Otherwise, choose a room near the front or back door of the house or apartment.
3. Separate your office from living areas to keep your business and personal lives separate.
4. If your office space is part of another room, divide it from the rest of the room with a screen or large plants.
5. Take a short walk before entering your office to work each day and another one at the end of your working day. This separates the business and personal aspects of your life.
6. Place your desk on the corner diagonally opposite to the doorway.
7. Don't place your desk under a window, but let the light reflect on it from the side. Some people prefer to have their desks facing east.
8. Leave space between your furniture (bookshelves etc.) and the walls. Feng shui experts suggest leaving a 7-9 inch gap.
9. An important aspect of office feng shui is to keep your workspace tidy to allow a free flow of energy throughout the room.
10. Differentiate between clutter and storage. Stored items don't have to be catalogued and labeled but they should be stacked neatly in a cupboard or in binders so as not to impede energy flow.
Obviously there’s a lot more to feng shui than what we’ve discussed in this article but you now have the basics for applying feng shui to your office space.
When you’ve made whatever changes you choose to incorporate, take a slow walk through your office and notice your spontaneous reaction. You should experience a sense of ease and flow, as opposed to feelings of claustrophobia, stress or overwhelm caused by too much clutter.
About the author:
Marguerite Bonneville is a Master Practitioner of Neuro-Linguistic Programming (NLP) whose passion is publishing information online. Her web site, Hidden Keys To Wealth, offers a range of resources for people committed to achieving financial freedom. Visit
http://www.hidden-wealth-keys.com for NLP and wealth mindset tools, tips on choosing a wealth creation vehicle, and a step-by-step guide to starting a small business.
Federal Loans
By Vanessa McHooley
- What the Government Does to Help You Pay for School
Going to college in America these days is not something for those with weak pocketbooks, as money is of the essence when attending any college or university within the country. Though it is well worth it for anyone to attend college, most people cannot afford to pay for college directly out of their pocket. This is why the federal government offers different types of loans to help you to pay for school. Between Federal Stafford Loans and Federal PLUS Loans, you should be able to receive money for college and receive the quality education that you are seeking.
Federal Stafford Loans
A Federal Stafford Loan from the government is one of the most affordable options for a potential college student looking to find money to pay his/her way through higher education. Interest rates on these loans are often much lower than other options, as the current all-time low of just under 4% is very, very low. While these loans are usually fairly large, no credit check is required to receive a Federal Stafford Loan and no collateral must be put up. However, the best part of all may be that Federal Stafford Loans do not have to be paid back until after you graduate! That means one less stressor during your college years.
Federal PLUS Loans
Aside from a Federal Stafford Loan, students may also choose to bring their parents into the equation with a Federal PLUS Loan, which allows parents of students to borrow federal funds and pay college tuition. In this case, a credit check is required, but PLUS Loans allow parents to supplement any amount of money that is needed for college after other forms of financial aid are allocated to the student. Either through the use of Stafford Loans or PLUS Loans, students can use the federal government to pay off their college tuition. Though these Loans must be paid back, this is a great way to pay for college without actually having to work, in addition to your studies, while you are in college.
This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Federal Loans at http://www.NextStudent.com .
About the author:
My goal is to help every student succeed - education is one of the most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.
- What the Government Does to Help You Pay for School
Going to college in America these days is not something for those with weak pocketbooks, as money is of the essence when attending any college or university within the country. Though it is well worth it for anyone to attend college, most people cannot afford to pay for college directly out of their pocket. This is why the federal government offers different types of loans to help you to pay for school. Between Federal Stafford Loans and Federal PLUS Loans, you should be able to receive money for college and receive the quality education that you are seeking.
Federal Stafford Loans
A Federal Stafford Loan from the government is one of the most affordable options for a potential college student looking to find money to pay his/her way through higher education. Interest rates on these loans are often much lower than other options, as the current all-time low of just under 4% is very, very low. While these loans are usually fairly large, no credit check is required to receive a Federal Stafford Loan and no collateral must be put up. However, the best part of all may be that Federal Stafford Loans do not have to be paid back until after you graduate! That means one less stressor during your college years.
Federal PLUS Loans
Aside from a Federal Stafford Loan, students may also choose to bring their parents into the equation with a Federal PLUS Loan, which allows parents of students to borrow federal funds and pay college tuition. In this case, a credit check is required, but PLUS Loans allow parents to supplement any amount of money that is needed for college after other forms of financial aid are allocated to the student. Either through the use of Stafford Loans or PLUS Loans, students can use the federal government to pay off their college tuition. Though these Loans must be paid back, this is a great way to pay for college without actually having to work, in addition to your studies, while you are in college.
This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Federal Loans at http://www.NextStudent.com .
About the author:
My goal is to help every student succeed - education is one of the most important things a person can have, so I have made it my personal mission to help every student pay for their education. Aside from that, I am just a pretty average girl from SD.
Fears Only Enemy Is Action
By David Chandler
What a great statement!
I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials.
Fear is a huge issue with a lot of traders. And interestingly, not just fear of failure but also fear of success.
I think there are two keys to taming fear [you can never eliminate it so don't even try!].
The first and most critical is the one noted above - action. Action can tame fear in an instant. But it needs to be the right sort of action.
If you have a fear of heights, going bungee jumping may not be the best way to address it! But standing on a high bridge is a good first step.
In the same way, if you have a fear of losing your trading account, trying to face it down by putting it all on the line in one trade is not the best sort of action.
But taking considered, appropriate action [like the strict use of stop losses] is a way of taming fear. And getting past the paralysis stage that fear can create.
The second key is focus. By this I mean keeping in the moment and concentrating on the immediate action that is required to move you forward.
If your focus is too broad you can become overwhelmed by the possibilities. Or you might start to worry about things that are beyond your control or simply don't matter - like whether interest rates are going up or not.
But when you narrow your focus and remain "in the moment" in regard your trading, fear will be sidelined. The simple reason for this is that you can't concentrate on two things at once!
And again, this will help overcome the paralysis that can be created by fear.
So if you suffer from fear in your trading - action and focus are the key!
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
What a great statement!
I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials.
Fear is a huge issue with a lot of traders. And interestingly, not just fear of failure but also fear of success.
I think there are two keys to taming fear [you can never eliminate it so don't even try!].
The first and most critical is the one noted above - action. Action can tame fear in an instant. But it needs to be the right sort of action.
If you have a fear of heights, going bungee jumping may not be the best way to address it! But standing on a high bridge is a good first step.
In the same way, if you have a fear of losing your trading account, trying to face it down by putting it all on the line in one trade is not the best sort of action.
But taking considered, appropriate action [like the strict use of stop losses] is a way of taming fear. And getting past the paralysis stage that fear can create.
The second key is focus. By this I mean keeping in the moment and concentrating on the immediate action that is required to move you forward.
If your focus is too broad you can become overwhelmed by the possibilities. Or you might start to worry about things that are beyond your control or simply don't matter - like whether interest rates are going up or not.
But when you narrow your focus and remain "in the moment" in regard your trading, fear will be sidelined. The simple reason for this is that you can't concentrate on two things at once!
And again, this will help overcome the paralysis that can be created by fear.
So if you suffer from fear in your trading - action and focus are the key!
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
Exploring the world of day trading
By Michael Sanford
Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.
What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.
Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding.
Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across North America but it can be a very fast way to lose everything. Some people are making over $5000.00 a day but it takes months and sometimes years to learn and master day trading.
The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations.
Day trading requires a certain amount of capital. Generally, day trading should have enough trading capital to buy at least 1000 shares of any given stock on any particular day. There are very few stocks priced under $20 that have the degree of liquidity necessary to make them suitable for day trading. This means that a novice day trader should normally have day trading capital of at least $20,000 to start. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly.
You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks.
Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.
What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.
Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding.
Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across North America but it can be a very fast way to lose everything. Some people are making over $5000.00 a day but it takes months and sometimes years to learn and master day trading.
The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations.
Day trading requires a certain amount of capital. Generally, day trading should have enough trading capital to buy at least 1000 shares of any given stock on any particular day. There are very few stocks priced under $20 that have the degree of liquidity necessary to make them suitable for day trading. This means that a novice day trader should normally have day trading capital of at least $20,000 to start. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly.
You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks.
EVEN A NEWBORN BABY CAN OPEN A ROTH IRA!
By Dr. Scott Brown, Ph.D.
The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation). Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. Let me explain.
The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. As mentioned, you must have some form of compensation to qualify to make a contribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA. In 2004, the adjusted gross income limits were:
• If your tax filing status is “Married Filing Jointly” - $160,000
• If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000
• If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000
Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the University of South Carolina I gave 10% credit of the course grade for the simple act of opening a Roth IRA. I was amazed when a few students would not open one because their parents had told them it was illegal to if they did not have a job. I told them that they were going nowhere fast if they could not think creatively enough to just go mow a lawn somewhere for ten bucks and put it into the account. I made it clear to them that wealthy people become so by taking action nut just thinking about taking action!
The best application of this concept I ever learned was a real estate investor that wanted to open a Roth for his newborn son. The problem of proving that a newborn makes money in a job is a tough one even for my noodle but this fellow came up with a great idea. He took a photo of the baby and put it on the business card with the words; “Help my dad finance my education by buying a home from him…he is the best dad in the whole world!” Then he paid the baby, get this…modeling fees! He put those fees straight into the account and filed a return for the baby with the IRS. I love that story! Talk about creative that is the kind of person that will go far in business. This is also the only newborn I have heard of with a tax free stock portfolio from earnings off his own job!
The second Roth IRA contribution limit has to do with how much you can contribute to your account. Below outlines the contribution limits established for the next several years:
• 2004 - $3,000 ($3,500 if you are age 50 and above)
• 2005 - $4,000 ($4,500 if you are age 50 and above)
• 2006 - $4,000 ($5,000 if you are age 50 and above)
• 2007 - $4,000 ($5,000 if you are age 50 and above)
• 2008 - $5,000 ($6,000 if you are age 50 and above)
If you need more information about Roth IRAs, you should consult a tax professional such as a Certified Public Accountant or Certified Financial Planner. You can also get more information directly if you take a look at IRS publication 590 - Individual Retirement Arrangements. Using a Roth is the very best trading account to use while investing in the stock market.
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
The Roth is kind of weird until you get used to it in terms of how much you can put in (contribute) each year depending on how much you earn (compensation). Because of this you really have two limits, one dealing with your compensation and the other dealing with your contribution. Let me explain.
The first contribution limit has to do with compensation, in other words you have to be making some money somewhere. As mentioned, you must have some form of compensation to qualify to make a contribution, but there is also an income limit that says whether or not you can put money in; make a contribution. If your adjusted gross income exceeds these limits, you are no longer eligible to contribute to a Roth IRA. In 2004, the adjusted gross income limits were:
• If your tax filing status is “Married Filing Jointly” - $160,000
• If your tax filing status is “Married Filing Separately” (and you live with your spouse) - $100,000
• If your tax filing status is “Single”, “Head of Household” or “Married Filing Separately” (and you did not live with your spouse during the year) - $110,000
Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the University of South Carolina I gave 10% credit of the course grade for the simple act of opening a Roth IRA. I was amazed when a few students would not open one because their parents had told them it was illegal to if they did not have a job. I told them that they were going nowhere fast if they could not think creatively enough to just go mow a lawn somewhere for ten bucks and put it into the account. I made it clear to them that wealthy people become so by taking action nut just thinking about taking action!
The best application of this concept I ever learned was a real estate investor that wanted to open a Roth for his newborn son. The problem of proving that a newborn makes money in a job is a tough one even for my noodle but this fellow came up with a great idea. He took a photo of the baby and put it on the business card with the words; “Help my dad finance my education by buying a home from him…he is the best dad in the whole world!” Then he paid the baby, get this…modeling fees! He put those fees straight into the account and filed a return for the baby with the IRS. I love that story! Talk about creative that is the kind of person that will go far in business. This is also the only newborn I have heard of with a tax free stock portfolio from earnings off his own job!
The second Roth IRA contribution limit has to do with how much you can contribute to your account. Below outlines the contribution limits established for the next several years:
• 2004 - $3,000 ($3,500 if you are age 50 and above)
• 2005 - $4,000 ($4,500 if you are age 50 and above)
• 2006 - $4,000 ($5,000 if you are age 50 and above)
• 2007 - $4,000 ($5,000 if you are age 50 and above)
• 2008 - $5,000 ($6,000 if you are age 50 and above)
If you need more information about Roth IRAs, you should consult a tax professional such as a Certified Public Accountant or Certified Financial Planner. You can also get more information directly if you take a look at IRS publication 590 - Individual Retirement Arrangements. Using a Roth is the very best trading account to use while investing in the stock market.
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
DRESS CODE!
By David Chandler
Hooley dooley - you should see me today.
I'm still in my dressing gown - and the market makers have gone to lunch!
Must get myself organised!
I do have a dress code … well, a very casual one!
When I became a full-time trader I decided, like anyone who goes out to work, that I would present myself at the computer each morning ready for work- that is, I would be up, showered and dressed by the time the market opens.
Today, I didn't quite get it together.
The point is, when I had my business and perhaps I'd come home late the previous night, I'd find myself the next morning sitting at the computer, straight out of bed in my dressing gown.
I truly found my attitude and decision-making weren't up to scratch - I hadn't set myself up in business mode. I was more interested in having a cup of tea and phoning a friend, while I glanced at the charts.
So, I know it's hard with babies and children around (you can get to the afternoon and realise you haven't had time for a shower you've been so busy - let alone to be dressed). However, if you're anything like me - when you start the day's work you're in a much better mind-set if you are dressed for the day. You are ready to make a commitment to the task. I know you mostly won't trade at this time of day, but it's good to see if there are any strong movements at the beginning of the day and keep an eye on the charts.
By being dressed and prepared for work at the same time each day - you've already set yourself up to be in the best frame of mind to make excellent decisions … and reaps the rewards!
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and has not worked for us personally. If you wish to trade or invest in the stock market, you should obtain advice from a registered licensed advisor.
About the author:
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
Hooley dooley - you should see me today.
I'm still in my dressing gown - and the market makers have gone to lunch!
Must get myself organised!
I do have a dress code … well, a very casual one!
When I became a full-time trader I decided, like anyone who goes out to work, that I would present myself at the computer each morning ready for work- that is, I would be up, showered and dressed by the time the market opens.
Today, I didn't quite get it together.
The point is, when I had my business and perhaps I'd come home late the previous night, I'd find myself the next morning sitting at the computer, straight out of bed in my dressing gown.
I truly found my attitude and decision-making weren't up to scratch - I hadn't set myself up in business mode. I was more interested in having a cup of tea and phoning a friend, while I glanced at the charts.
So, I know it's hard with babies and children around (you can get to the afternoon and realise you haven't had time for a shower you've been so busy - let alone to be dressed). However, if you're anything like me - when you start the day's work you're in a much better mind-set if you are dressed for the day. You are ready to make a commitment to the task. I know you mostly won't trade at this time of day, but it's good to see if there are any strong movements at the beginning of the day and keep an eye on the charts.
By being dressed and prepared for work at the same time each day - you've already set yourself up to be in the best frame of mind to make excellent decisions … and reaps the rewards!
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and has not worked for us personally. If you wish to trade or invest in the stock market, you should obtain advice from a registered licensed advisor.
About the author:
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market
By David Chandler
Well maybe that's overstating it a little, but it's certainly one of the most important.
It is…(drum roll please)… “the need to be rightâ€!
Now that probably wasn't what you were expecting. You might have thought it was going to be something like not picking the trend or putting too much money on a single trade or one of a dozen other things.
But I can assure you, from bitter experience, that this one attitude causes more problems than most other things you might do as a trader. And it's worse for men! Something to do with ego or testosterone…
You see our whole society is based on the importance of being right. The need to be right.
Your parents rewarded you when you are right and told you off when you were “wrongâ€. They probably still do this now that you are grown up!
From your earliest days at school you are taught that being right is the most important thing. Isn't that what tests teach you? And this is reinforced through the rest of your life. Your boss probably reminds you of this just about every day!
But some of the best things occur when we aren't right. Like the time you take a wrong turn. Either in your travels or in your life. And you end up at this amazing place or with this amazing person that you never would have, had you done the “right†thing.
Plus there's not a lot of point beating yourself up when you aren't “rightâ€. Because, as we all know, it's going to happen pretty regularly!
Coming from Australia, I don't know a lot about baseball. But I do understand that batters get paid a lot of money to miss hit the ball an awful lot! Think about that. Top baseballers step up to the plate every day knowing that they are more than likely not going to get it “rightâ€. Yet they are confident and successful because they know that over a season they are going to get it right often enough.
Don't Beat Yourself Up or the Market Will join In!
I went to a speed-reading course many years ago. I didn't learn how to read faster (!) but I did learn an attitude that has stuck with me ever since. It is - “Focus. No attachment to the outcome.â€
This guy was telling us about how he taught elite sportsmen to achieve their best (hope he was better at that than teaching people how to read fast!). He explained that the trick was to get them to keep taking the shot (or making the jump or whatever) without getting upset with themselves if they got it wrong.
The key was for them to focus on what they had to do in that moment, not on the outcome.
Maybe I have lost you? But the point I'm trying to make is that you need to go into each of your trades with your focus - not on being right - but on following your trading system.
And then the key is to not beat yourself up if you “get it wrongâ€. Because if you have followed your system and you know the system works over time, you have done the “right†thing.
Once you have confidence in your trading method your only focus is on following the signals.
“Focus. No attachment to the outcome.â€
By the way, try this approach in other areas of your life. It really works! My golf was much better once I stopped getting angry at myself for every lousy shot.
Deadly Attitude in the Market
In the stock market you can't afford to hold onto the need to be “rightâ€!
When trading, you cannot be right 100% of the time. In fact, you can be right only 50% of the time and still make lots of money. But this means you have to be wrong an awful lot!
The market will do what the market will do - no matter what your opinion might be. If you are holding a stock and you expect it to go up in price but it starts to go down, what happens?
If you are like me, a little voice inside says something like “…but this wasn't meant to happen!…it can't do this to me!… I know I'm right - it's just a temporary set back; it will come right, I'll just wait it out…
This “voice of reason†is your ego. You can't bear to be wrong, so you justify your decision to yourself. You must be right! You tell yourself that you know what's going to happen…the market's just confused…it's just got it wrong! (totally illogical reasoning - the market can never be “wrong†- but it makes sense at the time!).
This deep-seated, primordial need that we have to be right can destroy you in the stock market. It will make you put too much money on one trade. And it will make you hold onto stocks that you should have sold days or even weeks ago.
It will mean you will miss opportunities you should have taken because your view was the opposite of what actually happens. And you can miss getting extra profits from a trade because you were convinced that “…it couldn't possibly go any higher…â€
By being aware of this “need†you can overcome it - over time! You need to get to the point where you “want what the market wantsâ€. Not what you want.
Just remember.
“Focus. No attachment to the outcome.â€
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
About the author:
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
Well maybe that's overstating it a little, but it's certainly one of the most important.
It is…(drum roll please)… “the need to be rightâ€!
Now that probably wasn't what you were expecting. You might have thought it was going to be something like not picking the trend or putting too much money on a single trade or one of a dozen other things.
But I can assure you, from bitter experience, that this one attitude causes more problems than most other things you might do as a trader. And it's worse for men! Something to do with ego or testosterone…
You see our whole society is based on the importance of being right. The need to be right.
Your parents rewarded you when you are right and told you off when you were “wrongâ€. They probably still do this now that you are grown up!
From your earliest days at school you are taught that being right is the most important thing. Isn't that what tests teach you? And this is reinforced through the rest of your life. Your boss probably reminds you of this just about every day!
But some of the best things occur when we aren't right. Like the time you take a wrong turn. Either in your travels or in your life. And you end up at this amazing place or with this amazing person that you never would have, had you done the “right†thing.
Plus there's not a lot of point beating yourself up when you aren't “rightâ€. Because, as we all know, it's going to happen pretty regularly!
Coming from Australia, I don't know a lot about baseball. But I do understand that batters get paid a lot of money to miss hit the ball an awful lot! Think about that. Top baseballers step up to the plate every day knowing that they are more than likely not going to get it “rightâ€. Yet they are confident and successful because they know that over a season they are going to get it right often enough.
Don't Beat Yourself Up or the Market Will join In!
I went to a speed-reading course many years ago. I didn't learn how to read faster (!) but I did learn an attitude that has stuck with me ever since. It is - “Focus. No attachment to the outcome.â€
This guy was telling us about how he taught elite sportsmen to achieve their best (hope he was better at that than teaching people how to read fast!). He explained that the trick was to get them to keep taking the shot (or making the jump or whatever) without getting upset with themselves if they got it wrong.
The key was for them to focus on what they had to do in that moment, not on the outcome.
Maybe I have lost you? But the point I'm trying to make is that you need to go into each of your trades with your focus - not on being right - but on following your trading system.
And then the key is to not beat yourself up if you “get it wrongâ€. Because if you have followed your system and you know the system works over time, you have done the “right†thing.
Once you have confidence in your trading method your only focus is on following the signals.
“Focus. No attachment to the outcome.â€
By the way, try this approach in other areas of your life. It really works! My golf was much better once I stopped getting angry at myself for every lousy shot.
Deadly Attitude in the Market
In the stock market you can't afford to hold onto the need to be “rightâ€!
When trading, you cannot be right 100% of the time. In fact, you can be right only 50% of the time and still make lots of money. But this means you have to be wrong an awful lot!
The market will do what the market will do - no matter what your opinion might be. If you are holding a stock and you expect it to go up in price but it starts to go down, what happens?
If you are like me, a little voice inside says something like “…but this wasn't meant to happen!…it can't do this to me!… I know I'm right - it's just a temporary set back; it will come right, I'll just wait it out…
This “voice of reason†is your ego. You can't bear to be wrong, so you justify your decision to yourself. You must be right! You tell yourself that you know what's going to happen…the market's just confused…it's just got it wrong! (totally illogical reasoning - the market can never be “wrong†- but it makes sense at the time!).
This deep-seated, primordial need that we have to be right can destroy you in the stock market. It will make you put too much money on one trade. And it will make you hold onto stocks that you should have sold days or even weeks ago.
It will mean you will miss opportunities you should have taken because your view was the opposite of what actually happens. And you can miss getting extra profits from a trade because you were convinced that “…it couldn't possibly go any higher…â€
By being aware of this “need†you can overcome it - over time! You need to get to the point where you “want what the market wantsâ€. Not what you want.
Just remember.
“Focus. No attachment to the outcome.â€
The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and hasn't worked for us personally. If you wish to trade or invest in the stock market you should obtain advice from a registered licensed advisor.
About the author:
David Chandler
http://www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: http://www.stockmarketgenie.com
DON’T LET MUTUAL FUND NAMES FOOL YOU OUT OF YOUR RETIREMENT!
By Dr. Scott Brown, Ph.D.
Mutual fund managers use fake fund names to part you from your money such that you cannot judge what a fund does by its name. Many funds have names that are outright misleading or even deceptive. In the late 1990’s, for instance, during the technology stock bubble, some portfolio managers took advantage of public’s desire to chase the latest fad by slapping “internet” in front of their fund names.
The chances of that happening now are possibly lower. As of July 2002, the SEC requires funds to have at least 80% of their assets in securities that their fund name implies, up from 65% previously. This new rule is forcing funds that called themselves something like the America’s Government Fund to either dispose of East Asian government debt if it exceeded 20% of fund assets, or to change the fund’s name.
Likewise for funds that call themselves an equity income fund but have 25% of assets in stocks that paid no dividends. More than five hundred funds have had to change their names because they failed the 80% rule. Invesco’s Blue Chip Growth fund, for example, is now called just growth fund, since 60% of its holdings are in technology stocks, and many of those can hardly be called blue chips these days.
The 80% rule still allows mutual funds to invest in just about anything up to 20% of holdings. Why don’t you just avoid the entire problem by buying shares of an indexed mutual fund when you only have a selection of mutual funds to select? For this reason I strongly recommend that if you can only buy mutual funds, as in the case of the 401(k), then restrict your purchases to indexed funds such as the Vanguard 500 (VFINX). The best you can do is to learn to select individual stocks in your Roth IRA or individual account.
About the author:
Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. His free newsletter www.WalletDoctor.comis jam packed with personal finance and investment tips and advice! His course which is described in detail at www.BonanzaBase.comteaches home study stock market investment students more than an undergraduate or MBA degree in finance...how does he know? Because he is also a university finance professor!
Mutual fund managers use fake fund names to part you from your money such that you cannot judge what a fund does by its name. Many funds have names that are outright misleading or even deceptive. In the late 1990’s, for instance, during the technology stock bubble, some portfolio managers took advantage of public’s desire to chase the latest fad by slapping “internet” in front of their fund names.
The chances of that happening now are possibly lower. As of July 2002, the SEC requires funds to have at least 80% of their assets in securities that their fund name implies, up from 65% previously. This new rule is forcing funds that called themselves something like the America’s Government Fund to either dispose of East Asian government debt if it exceeded 20% of fund assets, or to change the fund’s name.
Likewise for funds that call themselves an equity income fund but have 25% of assets in stocks that paid no dividends. More than five hundred funds have had to change their names because they failed the 80% rule. Invesco’s Blue Chip Growth fund, for example, is now called just growth fund, since 60% of its holdings are in technology stocks, and many of those can hardly be called blue chips these days.
The 80% rule still allows mutual funds to invest in just about anything up to 20% of holdings. Why don’t you just avoid the entire problem by buying shares of an indexed mutual fund when you only have a selection of mutual funds to select? For this reason I strongly recommend that if you can only buy mutual funds, as in the case of the 401(k), then restrict your purchases to indexed funds such as the Vanguard 500 (VFINX). The best you can do is to learn to select individual stocks in your Roth IRA or individual account.
About the author:
Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. His free newsletter www.WalletDoctor.comis jam packed with personal finance and investment tips and advice! His course which is described in detail at www.BonanzaBase.comteaches home study stock market investment students more than an undergraduate or MBA degree in finance...how does he know? Because he is also a university finance professor!
DISCOVER THE RETIREMENT BREAKTHROUGH …THE ROTH IRA!
By Dr. Scott Brown, Ph.D.
If you don’t know what a Roth IRA is then stop everything, print this article and read it carefully as this will certainly be the most valuable information you read this year. This next retirement account is to your net worth what light bulb was to electricity. Let me tell you about this wonderful financial invention called a Roth IRA!
The main difference between the Roth and traditional IRA is that with the Roth you pay taxes first and then make the contribution. This is absolutely fantastic if you make a lot of money in the stock market because you NEVER have to pay even a dime on the capital gains! There are a ton of other advantages to the Roth IRA. Unlike the traditional IRA you can be of any age and still contribute. You can also make a contribution to a Roth IRA at any time for a particular calendar year up until the due date of your tax return for that year. This means that if you want to make a Roth IRA contribution for 2005, you could make it anytime between January 1, 2005 and April 15, 2006. Another nice feature of the Roth IRA is that your spouse will also qualify for a contribution.
There is no tax deduction for Roth IRAs. Contributions are made with money that has already been taxed so there is no immediate tax break. Don’t fool yourself into thinking that this isn’t the best thing since the wheel because when Roth money is taken out, it is a tax-free distribution! This type of IRA is ideal for individuals in a lower tax bracket now, but anticipate being in a higher tax bracket at retirement. In other words, if you are in a blue-collar or white-collar middle class family and are learning and practicing good savings and investment habits than this is your retirement life saver!
It gets even better; you may make contributions at any age, even after you reach 70½. You must have your Roth account open for at least five years before you can take a penalty free distribution of earnings. Distributions of earnings without penalty can be taken after age 59½. If you are a first-time home buyer or become disabled, you can take distributions earlier. You can also withdraw the contributions at any time penalty free as long as you don’t withdraw investment earnings. What many people don’t know who even have Roth is that they can withdraw the contribution for the account without penalty at any time as long as you don’t touch any stock profits.
If you exceed the income limits you can neither contribute to nor roll over other IRA money into a Roth account. If you opened a Roth while you were under the income limits but then later earn more, your Roth account still will earn money tax-free that you can take out later without tax implications, but no new contributions are allowed. Another absolutely incredible feature of the Roth IRA is that it is also judgment proof. If you get sued it can be very hard for the lawyers to get it from you!
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
If you don’t know what a Roth IRA is then stop everything, print this article and read it carefully as this will certainly be the most valuable information you read this year. This next retirement account is to your net worth what light bulb was to electricity. Let me tell you about this wonderful financial invention called a Roth IRA!
The main difference between the Roth and traditional IRA is that with the Roth you pay taxes first and then make the contribution. This is absolutely fantastic if you make a lot of money in the stock market because you NEVER have to pay even a dime on the capital gains! There are a ton of other advantages to the Roth IRA. Unlike the traditional IRA you can be of any age and still contribute. You can also make a contribution to a Roth IRA at any time for a particular calendar year up until the due date of your tax return for that year. This means that if you want to make a Roth IRA contribution for 2005, you could make it anytime between January 1, 2005 and April 15, 2006. Another nice feature of the Roth IRA is that your spouse will also qualify for a contribution.
There is no tax deduction for Roth IRAs. Contributions are made with money that has already been taxed so there is no immediate tax break. Don’t fool yourself into thinking that this isn’t the best thing since the wheel because when Roth money is taken out, it is a tax-free distribution! This type of IRA is ideal for individuals in a lower tax bracket now, but anticipate being in a higher tax bracket at retirement. In other words, if you are in a blue-collar or white-collar middle class family and are learning and practicing good savings and investment habits than this is your retirement life saver!
It gets even better; you may make contributions at any age, even after you reach 70½. You must have your Roth account open for at least five years before you can take a penalty free distribution of earnings. Distributions of earnings without penalty can be taken after age 59½. If you are a first-time home buyer or become disabled, you can take distributions earlier. You can also withdraw the contributions at any time penalty free as long as you don’t withdraw investment earnings. What many people don’t know who even have Roth is that they can withdraw the contribution for the account without penalty at any time as long as you don’t touch any stock profits.
If you exceed the income limits you can neither contribute to nor roll over other IRA money into a Roth account. If you opened a Roth while you were under the income limits but then later earn more, your Roth account still will earn money tax-free that you can take out later without tax implications, but no new contributions are allowed. Another absolutely incredible feature of the Roth IRA is that it is also judgment proof. If you get sued it can be very hard for the lawyers to get it from you!
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
DISCOVER THE FOUNDATION OF RETIRING WEALTHY…THE IRA
By Dr. Scott Brown, Ph.D.
Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. The very best way is to buy and sell your stock through Individual Retirement Accounts (IRAs). IRAs can help you legally avoid taxes and add a fantastic boost to your retirement plans. The IRA was originally developed in 1974 for people not covered by a company pension plan. "The individual retirement account legislation allowed the average person a chance to put money into a tax-advantaged account," according to Bruce Grace, a Chartered Financial Analyst and Assistant Professor of Finance at Morehead State University.
This is a huge benefit to individuals, regardless of whether they have company-established pension plans or not. "The Roth IRA may be an even a better deal for those who think they will be in a higher tax bracket at retirement," Grace added. I personally go a step further and mean it when I tell you that “the Roth Ira is literally the best thing since sliced bread” and I guarantee you is “neater than peanut butter”. It may seem a little confusing because since the original enactment of IRA legislation, several types of IRAs have been developed with a variety of characteristics that can meet your investment and retirement needs.
The most common forms of the IRA are as follows. The traditional IRA gives you a tax deduction on all of your contributions to the account during your working years and taxes what you take out of the account in your retirement. The Roth IRA does not give you a tax deduction during your working years but you pay no taxes on withdrawals while you are retired. The 401(K) is an IRA that your employer may or may not offer instead of a pension where, unfortunately, you are generally restricted to investing in mutual funds. The Roth 401(k) is very new and is much better than the standard 401(k) but the jury is out as to whether corporate insiders will adopt it for their employees. The SIMPLE and SEP IRAs are very nice supplemental tax shelters for small business owners and family businesses. Finally, the Education IRA gives you a way to save for a child’s college studies.
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. The very best way is to buy and sell your stock through Individual Retirement Accounts (IRAs). IRAs can help you legally avoid taxes and add a fantastic boost to your retirement plans. The IRA was originally developed in 1974 for people not covered by a company pension plan. "The individual retirement account legislation allowed the average person a chance to put money into a tax-advantaged account," according to Bruce Grace, a Chartered Financial Analyst and Assistant Professor of Finance at Morehead State University.
This is a huge benefit to individuals, regardless of whether they have company-established pension plans or not. "The Roth IRA may be an even a better deal for those who think they will be in a higher tax bracket at retirement," Grace added. I personally go a step further and mean it when I tell you that “the Roth Ira is literally the best thing since sliced bread” and I guarantee you is “neater than peanut butter”. It may seem a little confusing because since the original enactment of IRA legislation, several types of IRAs have been developed with a variety of characteristics that can meet your investment and retirement needs.
The most common forms of the IRA are as follows. The traditional IRA gives you a tax deduction on all of your contributions to the account during your working years and taxes what you take out of the account in your retirement. The Roth IRA does not give you a tax deduction during your working years but you pay no taxes on withdrawals while you are retired. The 401(K) is an IRA that your employer may or may not offer instead of a pension where, unfortunately, you are generally restricted to investing in mutual funds. The Roth 401(k) is very new and is much better than the standard 401(k) but the jury is out as to whether corporate insiders will adopt it for their employees. The SIMPLE and SEP IRAs are very nice supplemental tax shelters for small business owners and family businesses. Finally, the Education IRA gives you a way to save for a child’s college studies.
About the author:
ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina and a Master in International Management from the prestigious American Graduate School of International Business a.k.a. Thunderbird. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he was shouting out to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. He also teaches investing in Spanish and Portuguese. For more information visit Dr. Brown’s site at www.BonanzaBase.comor sign up for his investment tips at www.WalletDoctor.com
Debt Elimination 4
By Roy Thomsitt
Planning For Debt Elimination Without Surplus Cash
Previously we looked at using surplus cash each month to chip away at those outstanding loans, on our long road to debt elimination. But what can you do if there is no surplus cash every month?
So, you have examined your monthly outgoings, and there is nothing to cut out in the way of expenditure. Or you can make some savings, but it just brings your outgoings and income into balance each month, whereas before your outgoings were in excess of the income. Well, at least you have made some progress by bringing income and expenditure into equilibrium. But where does that leave you in your debt elimination challenge?
It is probably time to focus on those debts, and see what can be done to bring down the cost of those loans, and the monthly repayments. It may still be possible to plan for debt elimination in 5 years, especially with your newly developed anti debt mindset.
Taking out another loan will not, of course, bring instant debt elimination. However, it may be that a debt consolidation loan will give you a chance to structure your plan over a 3, 5 or 7 year period. With the right approach, this may be an excellent opportunity to improve your finances no end, resulting in debt elimination at the end of the loan period. The key will be in whether you are able to reduce your total loan repayments, and whether you are then able to set aside those savings each month.
Let us look at a simple example, of a consumer who has two credit cards and two other loans. He owes a total of $11300, and has a minimum monthly payment of $346. Let's say he is able to obtain a new consolidation loan at 10
nnual interest, and would have repayments of $240 per month over 5 years, a saving of $106 per month, or $6360 over the 5 year period.
That is a significant amount to put away each month. Enough for a replacement second hand car? No need for any more loans? In which case, debt elimination, by our definition excluding the mortgage, could be achieved within that 5 year period.
There are, of course, millions of permutations of figures, so you will have to consider your own. But the principles are always the same. Living within your budget, planning ahead, and saving for any future purchases in cash. That's a simple formula.
All it needs to accomplish debt elimination is your new mindset; the mindset that does not want debt, borrowings, loans to be a part of your future life. The mindset that has patience in clearing the debt, and is able resist new purchases of optional items until the cash is available.
It is worth always remembering, if you cannot to afford to pay cash for something, then you cannot really afford it at all. The only exception is the house, where the investment potential and rent saving alter the financial viewpoint.
Once you have the cash-save mindset, you have all you need to clear unwieldy and expensive debt from your life, once and for all.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Planning For Debt Elimination Without Surplus Cash
Previously we looked at using surplus cash each month to chip away at those outstanding loans, on our long road to debt elimination. But what can you do if there is no surplus cash every month?
So, you have examined your monthly outgoings, and there is nothing to cut out in the way of expenditure. Or you can make some savings, but it just brings your outgoings and income into balance each month, whereas before your outgoings were in excess of the income. Well, at least you have made some progress by bringing income and expenditure into equilibrium. But where does that leave you in your debt elimination challenge?
It is probably time to focus on those debts, and see what can be done to bring down the cost of those loans, and the monthly repayments. It may still be possible to plan for debt elimination in 5 years, especially with your newly developed anti debt mindset.
Taking out another loan will not, of course, bring instant debt elimination. However, it may be that a debt consolidation loan will give you a chance to structure your plan over a 3, 5 or 7 year period. With the right approach, this may be an excellent opportunity to improve your finances no end, resulting in debt elimination at the end of the loan period. The key will be in whether you are able to reduce your total loan repayments, and whether you are then able to set aside those savings each month.
Let us look at a simple example, of a consumer who has two credit cards and two other loans. He owes a total of $11300, and has a minimum monthly payment of $346. Let's say he is able to obtain a new consolidation loan at 10
nnual interest, and would have repayments of $240 per month over 5 years, a saving of $106 per month, or $6360 over the 5 year period.
That is a significant amount to put away each month. Enough for a replacement second hand car? No need for any more loans? In which case, debt elimination, by our definition excluding the mortgage, could be achieved within that 5 year period.
There are, of course, millions of permutations of figures, so you will have to consider your own. But the principles are always the same. Living within your budget, planning ahead, and saving for any future purchases in cash. That's a simple formula.
All it needs to accomplish debt elimination is your new mindset; the mindset that does not want debt, borrowings, loans to be a part of your future life. The mindset that has patience in clearing the debt, and is able resist new purchases of optional items until the cash is available.
It is worth always remembering, if you cannot to afford to pay cash for something, then you cannot really afford it at all. The only exception is the house, where the investment potential and rent saving alter the financial viewpoint.
Once you have the cash-save mindset, you have all you need to clear unwieldy and expensive debt from your life, once and for all.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Debt Elimination 3
By Roy Thomsitt
Planning To Achieve Debt Elimination
Once you have started the process of changing your debt mindset to be against taking on consumer debt, then that is something you need to continue until it becomes the norm in your life. In some ways it is like stopping smoking; trying on will power alone is not enough, you need to get to the source of your problem and permanently change it. That is why self hypnosis can be successful with stopping smoking; it reaches the subconscious mind and re-educates it. With debt elimination, it is the same; to succeed permanently you need to have changed the way your mind works, not just consciously, but sub consciously too.
In parallel to changing your mindset, you need to plan your debt elimination strategy. This will depend on you precise financial situation: your level of debt, monthly income, monthly commitments, overdue debts and so on. So, I cannot make specific suggestions for your circumstances, just give a few pointers to what you can do to head down the road to debt elimination. You may well get some benefit from debt counseling or financial planning advice at this stage, but that depends on you.
Your chances of achieving debt elimination within, say, 5 years, will depend a great deal on your own efforts, so if you can get through this part alone, then that may strengthen your chances of success.
Budgeting For Debt Elimination
You need to take a long hard look at your present financial situation and how it is likely to evolve into the future. For debt elimination to succeed, you need to be in control of your finances and keep your finger on the pulse all the time.
The starting point should be a list of your monthly outgoings. If you are unsure of any item, then monitor it for a month to see. For example, you may not know exactly how much you spend on food and other items from the grocery stores each month. Just keep a record of them for a month to see what your monthly expenditure is, but in the meantime use your best estimate.
You can then compare your monthly outgoings with your net income, and this will be the basis of your budget as you develop a plan for debt elimination. You also need to compile a list of your debts; how much is outstanding, what the monthly payments are, and what the interest rate is.
As an example, let us say you have a net monthly income of $2500, and your total outgoings, including debt and credit card repayments, are $2300. This means you have $200 to spare. With your new, anti debt mindset, you want to use that $200 spare to get your most expensive debts cleared first. There is a good chance it is the credit cards that are most expensive, so you can target the most expensive credit card ie the one with the highest interest. You owe $600 on that card, so in 3 months you can clear it. When cleared, you can move on to the next most expensive.
Depending on your debt level this could be a long process; that's why you need to plan it out and see how you will cut down that outstanding debt level over the coming months and years. So long as the total debt level is reducing, you are heading in the right direction.
Also, take a close look at those monthly outgoings. Are you sure there's nothing that can be cut out or reduced? Of course there is, unless you've already gone through that process recently. Be ruthless with this new mindset of yours; it really is worthwhile, knowing there will come a day when you don't have to worry about the odd few dollars here and there. Highlight those budget items that are unavoidable, and make sure you pay those first every month, or at least have the money earmarked.
If you rank your debts in order of interest rate cost, and go for the highest first, you can work through them one by one. Need a morale boost to get you off to a good start? Then choose the loan with the least outstanding, and clear that first. It may not be the best financially, but if it gives you that quick satisfaction, so the sacrifice may be worth it.
Debt elimination is not going to be an overnight happening. You need to be prepared to plan for a few years. 5 years is always a good period to plan for in business, and can be too in your personal life and finances. You may be amazed at the transformations you can achieve in 5 years. But above all, you need to maintain that anti debt mindset. After all, that is what will bring you to the debt elimination pinnacle.
In the next article, we consider what to do if there is really no spare in your monthly budget.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Planning To Achieve Debt Elimination
Once you have started the process of changing your debt mindset to be against taking on consumer debt, then that is something you need to continue until it becomes the norm in your life. In some ways it is like stopping smoking; trying on will power alone is not enough, you need to get to the source of your problem and permanently change it. That is why self hypnosis can be successful with stopping smoking; it reaches the subconscious mind and re-educates it. With debt elimination, it is the same; to succeed permanently you need to have changed the way your mind works, not just consciously, but sub consciously too.
In parallel to changing your mindset, you need to plan your debt elimination strategy. This will depend on you precise financial situation: your level of debt, monthly income, monthly commitments, overdue debts and so on. So, I cannot make specific suggestions for your circumstances, just give a few pointers to what you can do to head down the road to debt elimination. You may well get some benefit from debt counseling or financial planning advice at this stage, but that depends on you.
Your chances of achieving debt elimination within, say, 5 years, will depend a great deal on your own efforts, so if you can get through this part alone, then that may strengthen your chances of success.
Budgeting For Debt Elimination
You need to take a long hard look at your present financial situation and how it is likely to evolve into the future. For debt elimination to succeed, you need to be in control of your finances and keep your finger on the pulse all the time.
The starting point should be a list of your monthly outgoings. If you are unsure of any item, then monitor it for a month to see. For example, you may not know exactly how much you spend on food and other items from the grocery stores each month. Just keep a record of them for a month to see what your monthly expenditure is, but in the meantime use your best estimate.
You can then compare your monthly outgoings with your net income, and this will be the basis of your budget as you develop a plan for debt elimination. You also need to compile a list of your debts; how much is outstanding, what the monthly payments are, and what the interest rate is.
As an example, let us say you have a net monthly income of $2500, and your total outgoings, including debt and credit card repayments, are $2300. This means you have $200 to spare. With your new, anti debt mindset, you want to use that $200 spare to get your most expensive debts cleared first. There is a good chance it is the credit cards that are most expensive, so you can target the most expensive credit card ie the one with the highest interest. You owe $600 on that card, so in 3 months you can clear it. When cleared, you can move on to the next most expensive.
Depending on your debt level this could be a long process; that's why you need to plan it out and see how you will cut down that outstanding debt level over the coming months and years. So long as the total debt level is reducing, you are heading in the right direction.
Also, take a close look at those monthly outgoings. Are you sure there's nothing that can be cut out or reduced? Of course there is, unless you've already gone through that process recently. Be ruthless with this new mindset of yours; it really is worthwhile, knowing there will come a day when you don't have to worry about the odd few dollars here and there. Highlight those budget items that are unavoidable, and make sure you pay those first every month, or at least have the money earmarked.
If you rank your debts in order of interest rate cost, and go for the highest first, you can work through them one by one. Need a morale boost to get you off to a good start? Then choose the loan with the least outstanding, and clear that first. It may not be the best financially, but if it gives you that quick satisfaction, so the sacrifice may be worth it.
Debt elimination is not going to be an overnight happening. You need to be prepared to plan for a few years. 5 years is always a good period to plan for in business, and can be too in your personal life and finances. You may be amazed at the transformations you can achieve in 5 years. But above all, you need to maintain that anti debt mindset. After all, that is what will bring you to the debt elimination pinnacle.
In the next article, we consider what to do if there is really no spare in your monthly budget.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Debt Elimination 2
By Roy Thomsitt
The First Step To Debt Elimination
Regardless of your personal and financial circumstances, your education and your background, the chances are the first step you need to take in debt elimination has to take place in your mind. The Western mindset, especially in the US and UK, is firmly fixed on consumer debt. It is the way you have been reared in a debt ridden society.
To be realistic, let us assume that total debt elimination is not practical, nor necessarily desirable, from a financial point of view. The one major exception is in buying a house. When you buy a house, very few people are likely to be in a position to do so with cash. Unless they have inheritance, are very wealthy, are moving down the house market, or moving from an expensive to a cheap area, people buying a house will require a mortgage.
There can be considerable financial gains in the long run from taking on mortgage debt. Firstly, you have to live somewhere, so living in your own home is more desirable than renting for the rest of your life. Secondly, if you are lucky the capital growth on the house over the years will increase your underlying wealth, in a way that cannot happen with rented accommodation, which has the opposite affect. So, let us assume, for the purpose of this article, that by debt elimination we mean the elimination of all your consumer debt, except your home mortgage.
You may well find that, if you can change your mindset to be against borrowing to feed your consumer desires, that mortgage will be paid off much sooner than your average contemporaries. When you reach that stage, then there is every possibility that your debt elimination will become total, and your mindset will be so changed that there is never a need to take on any new debt.
Changing The Mindset To Support Debt Elimination
You are unlikely to find it easy to alter your attitude towards consumer debt. After all, it is the way you have probably been brought up, surrounded by easy credit. However, changing that mindset is both possible and financially desirable; debt elimination is achievable if you can successfully get through this first stage in the process.
So, how do you change the way you think about debt? Now, I am talking purely about consumer debt, not borrowing money to start or expand a business; about using debt to satisfy your material desires earlier than you can really afford them. Business finance can, and often does, justify itself through increasing your wealth at a faster rate than the interest charges decrease your wealth.
Consumer debt, on the other hand, is guaranteed to reduce your financial well being. When you borrow money to spend on consumable items, such as holidays, and diminishing assets, such as cars, then your wealth building is undermined; your assets are reduced over time. That, really, is the key to altering your mindset to favour the elimination of debt from your life. You need to:
1. Be aware that consumer debt is not good for your financial well being. You are increasing the bank's assets, and decreasing your own, by spending on credit.
2. You need to resent the fact that the banks make money out of you, when it should be the other way round. It's your hard earned money we're talking about here.
By giving constant focus to those two things you may develop a mindset that is shifting towards debt elimination. You can then give yourself greater strength in your determination by convincing yourself that, not only is debt elimination possible in the long term, but it will bring with it many rewards:
1. You will feel financially comfortable and in control; it really is a great feeling as those around you drown themselves in debt.
2. Over the years you will accumulate significant wealth compared to those earning the same amount but whose debt has always been out of control.
3. You will be able to walk in to a travel agent and pay cash, or debit card, for each vacation, while the person behind you in the queue will probably pay by credit card and then struggle the whole year to pay it off before the next vacation.
4. You will be able to walk into a car dealer and negotiate the best possible price for a new car as a cash buyer, knowing that the cash is your own and not the bank's.
5. You will be saving regularly for all your needs, while paying off your mortgage within the term.
All the while, your wealth will be accumulating, not being stripped bare by interest charges.
Imagine, in 10, or even 5, years' time, a comfortable financial life with no pressures. You may not be a millionaire, but beside your peer group you will be a beacon of financial stability and growing wealth. It's a long term process, but once you have the mindset, the journey can become a smooth one, with good planning and determination. Debt elimination really can be the final goal.
In the next article I will look at planning to eliminate debt.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
The First Step To Debt Elimination
Regardless of your personal and financial circumstances, your education and your background, the chances are the first step you need to take in debt elimination has to take place in your mind. The Western mindset, especially in the US and UK, is firmly fixed on consumer debt. It is the way you have been reared in a debt ridden society.
To be realistic, let us assume that total debt elimination is not practical, nor necessarily desirable, from a financial point of view. The one major exception is in buying a house. When you buy a house, very few people are likely to be in a position to do so with cash. Unless they have inheritance, are very wealthy, are moving down the house market, or moving from an expensive to a cheap area, people buying a house will require a mortgage.
There can be considerable financial gains in the long run from taking on mortgage debt. Firstly, you have to live somewhere, so living in your own home is more desirable than renting for the rest of your life. Secondly, if you are lucky the capital growth on the house over the years will increase your underlying wealth, in a way that cannot happen with rented accommodation, which has the opposite affect. So, let us assume, for the purpose of this article, that by debt elimination we mean the elimination of all your consumer debt, except your home mortgage.
You may well find that, if you can change your mindset to be against borrowing to feed your consumer desires, that mortgage will be paid off much sooner than your average contemporaries. When you reach that stage, then there is every possibility that your debt elimination will become total, and your mindset will be so changed that there is never a need to take on any new debt.
Changing The Mindset To Support Debt Elimination
You are unlikely to find it easy to alter your attitude towards consumer debt. After all, it is the way you have probably been brought up, surrounded by easy credit. However, changing that mindset is both possible and financially desirable; debt elimination is achievable if you can successfully get through this first stage in the process.
So, how do you change the way you think about debt? Now, I am talking purely about consumer debt, not borrowing money to start or expand a business; about using debt to satisfy your material desires earlier than you can really afford them. Business finance can, and often does, justify itself through increasing your wealth at a faster rate than the interest charges decrease your wealth.
Consumer debt, on the other hand, is guaranteed to reduce your financial well being. When you borrow money to spend on consumable items, such as holidays, and diminishing assets, such as cars, then your wealth building is undermined; your assets are reduced over time. That, really, is the key to altering your mindset to favour the elimination of debt from your life. You need to:
1. Be aware that consumer debt is not good for your financial well being. You are increasing the bank's assets, and decreasing your own, by spending on credit.
2. You need to resent the fact that the banks make money out of you, when it should be the other way round. It's your hard earned money we're talking about here.
By giving constant focus to those two things you may develop a mindset that is shifting towards debt elimination. You can then give yourself greater strength in your determination by convincing yourself that, not only is debt elimination possible in the long term, but it will bring with it many rewards:
1. You will feel financially comfortable and in control; it really is a great feeling as those around you drown themselves in debt.
2. Over the years you will accumulate significant wealth compared to those earning the same amount but whose debt has always been out of control.
3. You will be able to walk in to a travel agent and pay cash, or debit card, for each vacation, while the person behind you in the queue will probably pay by credit card and then struggle the whole year to pay it off before the next vacation.
4. You will be able to walk into a car dealer and negotiate the best possible price for a new car as a cash buyer, knowing that the cash is your own and not the bank's.
5. You will be saving regularly for all your needs, while paying off your mortgage within the term.
All the while, your wealth will be accumulating, not being stripped bare by interest charges.
Imagine, in 10, or even 5, years' time, a comfortable financial life with no pressures. You may not be a millionaire, but beside your peer group you will be a beacon of financial stability and growing wealth. It's a long term process, but once you have the mindset, the journey can become a smooth one, with good planning and determination. Debt elimination really can be the final goal.
In the next article I will look at planning to eliminate debt.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Debt Elimination 1
By Roy Thomsitt
If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts.
The notion of debt elimination, though, is in most cases a fanciful one, at least in the short term. If you have debts of $15,000, where will you suddenly find $15,000 for the elimination of those debts? If you have debts of $30,000, how can you suddenly just wipe out that amount? Realistically, you have little hope of reducing your debt balance to zero in the short term, if your debts are anything like that sort of level. Unless they win the lottery, or come into some inheritance money, the average person cannot suddenly find such sums.
If your debt situation is really bad and out of control, then you may be considering bankruptcy. That may wipe out your debt, but it can be a very unpleasant process to go through. The laws vary greatly between countries, but can sometimes be quite draconian, and greatly inhibitive for your future actions relating to money. Debt elimination by bankruptcy is an extreme which, if at all possible, is to be avoided by those who have pride and wish to make a genuine attempt to resolve their debt problems and plan a better financial future.
Also, if you have debts out of control, you may be considering debt negotiation. While this will not lead to debt elimination, it may help reduce the immediate pressures and make it easier to eliminate those debts some time in the future.
Of course, with lower amounts of debt, you have more of a chance, so it really does depend on both the debt level and your personal situation as to whether it is feasible to reduce your debts to zero in the foreseeable future. In the longer term, it is definitely possible, but there again the difficulty level will depend on the amount of debt and other personal circumstances.
What Are The Steps To Eliminate Debt?
Your precise steps to debt elimination will depend on your current financial situation and other personal circumstances. However, there are some broad steps that you can follow which can help you achieve debt elimination with patience and determination.
The follow up article will discuss the steps you can take to eliminate personal debt.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts.
The notion of debt elimination, though, is in most cases a fanciful one, at least in the short term. If you have debts of $15,000, where will you suddenly find $15,000 for the elimination of those debts? If you have debts of $30,000, how can you suddenly just wipe out that amount? Realistically, you have little hope of reducing your debt balance to zero in the short term, if your debts are anything like that sort of level. Unless they win the lottery, or come into some inheritance money, the average person cannot suddenly find such sums.
If your debt situation is really bad and out of control, then you may be considering bankruptcy. That may wipe out your debt, but it can be a very unpleasant process to go through. The laws vary greatly between countries, but can sometimes be quite draconian, and greatly inhibitive for your future actions relating to money. Debt elimination by bankruptcy is an extreme which, if at all possible, is to be avoided by those who have pride and wish to make a genuine attempt to resolve their debt problems and plan a better financial future.
Also, if you have debts out of control, you may be considering debt negotiation. While this will not lead to debt elimination, it may help reduce the immediate pressures and make it easier to eliminate those debts some time in the future.
Of course, with lower amounts of debt, you have more of a chance, so it really does depend on both the debt level and your personal situation as to whether it is feasible to reduce your debts to zero in the foreseeable future. In the longer term, it is definitely possible, but there again the difficulty level will depend on the amount of debt and other personal circumstances.
What Are The Steps To Eliminate Debt?
Your precise steps to debt elimination will depend on your current financial situation and other personal circumstances. However, there are some broad steps that you can follow which can help you achieve debt elimination with patience and determination.
The follow up article will discuss the steps you can take to eliminate personal debt.
About the author:
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
Debt consolidation makes sense ‘only’ with low interest rates
By Natasha Anderson
Credit that cannot be managed or is not being repaid requires debt consolidation. Debt consolidation offers borrowers with a chance to repay their high interest loans at low interest rate. You must be thinking, ‘it sounds good, but how is it possible.’ How can high interest loans repaid at low interest.
This is how debt consolidation works – it replaces multiple unsecured loans with single loan. As compared to several different loans, you obtain one single low interest rate loan. The single monthly payment on this loan is divided to repay the individual loans. This will also make your debt situation manageable. Debt consolidation should be accompanied with low interest rates; otherwise debt consolidation doesn’t make any sense.
It is almost mandatory to find debt consolidation with low interest rate. Otherwise, it would mean financial mishap of the worst kind. You might end up paying more in the long run. Debt consolidation plan can have serious shortcomings to if the plan is not carefully structured.
Finding a good low interest debt consolidation is not always easy. However, an extensive research can certainly open ways to find one. First of all it is important to understand that your financial situation is unique, so what works for your neighbour might not work for you. Your debt consolidation plan will be as unique as your financial status.
While looking for debt consolidation, keep in mind why you are looking for debt consolidation. You are trying to cut off your monthly payment, looking for low interest rate, low fees and a loan term that does not stretch beyond a few years. A longer loan term with low monthly payments would mean paying more. A debt consolidation loan should not stretch beyond 3-5 years and maximum upto 10 years. There are numerous companies offering debt consolidation online. Settle on the company which offers low interest rate debt consolidation with least hassle.
A way to debt consolidation is through credit cards. This debt consolidation would not require you to place collateral, so it can be a good option. Good credit history would provide you with low interest rate. Ask your current creditor what interest rates would be offered, in case you transfer balances from other credit cards to theirs. A low rate that is fixed with no transfer fee would be ideal. Otherwise, shop for a new credit card. However, don’t go overboard with your credit search. Numerous credit applications would have a negative impact on your credit report.
You can use equity in your house for debt consolidation at low interest. A 100% refinance would tap the equity in your house to repay loan and bills. Refinancing at low interest rate would mean getting rid of high interest rate loans with low monthly payment. Another way to tap on the equity is equity home loans. Home equity loan with fixed interest rate over a fixed period of time is an option. Also, you can take up home equity line of credit. Here you borrow upto a pre approved credit limit and borrow more if you still have money. These loans are offered with low interest rate and good repayment options and have great deals. With home equity loans, however, there is always a risk of losing the property if you fail to repay.
A debt consolidation loan that is unsecured would not come with low interest rates. Since you are offering no security, they imply risk to the loan lender. A loan lender would try to minimize his risk with higher interest rate. But with good credit, you might find exactly what you need. Try to look for another way to debt consolidation if interest rates are high. Calculate the cost of the entire loan term, before you settle on a debt consolidation loan.
Debt consolidation sounds like a very beneficial proposition to most of the borrowers but it may not always be good for ‘your’ finances. It is possible that with debt consolidation you end up paying a lot more interest rate. It is very essential to know whether debt consolidation is serving the purpose it is opted for, mainly, lowering interest rates.
Debt consolidation works as a boost to your credit situation. If you are looking for debt consolidation, you would be treated favourably because you are making an attempt to repay. And if you make your repayments on time, you will certainly be improving your credit. A positive credit history would make room for better finance options.
Debt consolidation in most of the cases is a good idea. But you need to be disciplined with your finances, henceforth. So, when you have finally opted for debt consolidation – no more loan borrowing. You don’t want to get deeper into debt. Without a plan and self restraint, debt consolidation won’t work. Debt consolidation with low interest rate would apply if you have only one thing in your mind – getting out of debt.
About the author:
After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK debt consolidation web site uk debt consolidations.To find a debt consolidation loans,debt management,debt advicec that best suits your needs visit http://www.ukdebtconsolidations.co.uk
Credit that cannot be managed or is not being repaid requires debt consolidation. Debt consolidation offers borrowers with a chance to repay their high interest loans at low interest rate. You must be thinking, ‘it sounds good, but how is it possible.’ How can high interest loans repaid at low interest.
This is how debt consolidation works – it replaces multiple unsecured loans with single loan. As compared to several different loans, you obtain one single low interest rate loan. The single monthly payment on this loan is divided to repay the individual loans. This will also make your debt situation manageable. Debt consolidation should be accompanied with low interest rates; otherwise debt consolidation doesn’t make any sense.
It is almost mandatory to find debt consolidation with low interest rate. Otherwise, it would mean financial mishap of the worst kind. You might end up paying more in the long run. Debt consolidation plan can have serious shortcomings to if the plan is not carefully structured.
Finding a good low interest debt consolidation is not always easy. However, an extensive research can certainly open ways to find one. First of all it is important to understand that your financial situation is unique, so what works for your neighbour might not work for you. Your debt consolidation plan will be as unique as your financial status.
While looking for debt consolidation, keep in mind why you are looking for debt consolidation. You are trying to cut off your monthly payment, looking for low interest rate, low fees and a loan term that does not stretch beyond a few years. A longer loan term with low monthly payments would mean paying more. A debt consolidation loan should not stretch beyond 3-5 years and maximum upto 10 years. There are numerous companies offering debt consolidation online. Settle on the company which offers low interest rate debt consolidation with least hassle.
A way to debt consolidation is through credit cards. This debt consolidation would not require you to place collateral, so it can be a good option. Good credit history would provide you with low interest rate. Ask your current creditor what interest rates would be offered, in case you transfer balances from other credit cards to theirs. A low rate that is fixed with no transfer fee would be ideal. Otherwise, shop for a new credit card. However, don’t go overboard with your credit search. Numerous credit applications would have a negative impact on your credit report.
You can use equity in your house for debt consolidation at low interest. A 100% refinance would tap the equity in your house to repay loan and bills. Refinancing at low interest rate would mean getting rid of high interest rate loans with low monthly payment. Another way to tap on the equity is equity home loans. Home equity loan with fixed interest rate over a fixed period of time is an option. Also, you can take up home equity line of credit. Here you borrow upto a pre approved credit limit and borrow more if you still have money. These loans are offered with low interest rate and good repayment options and have great deals. With home equity loans, however, there is always a risk of losing the property if you fail to repay.
A debt consolidation loan that is unsecured would not come with low interest rates. Since you are offering no security, they imply risk to the loan lender. A loan lender would try to minimize his risk with higher interest rate. But with good credit, you might find exactly what you need. Try to look for another way to debt consolidation if interest rates are high. Calculate the cost of the entire loan term, before you settle on a debt consolidation loan.
Debt consolidation sounds like a very beneficial proposition to most of the borrowers but it may not always be good for ‘your’ finances. It is possible that with debt consolidation you end up paying a lot more interest rate. It is very essential to know whether debt consolidation is serving the purpose it is opted for, mainly, lowering interest rates.
Debt consolidation works as a boost to your credit situation. If you are looking for debt consolidation, you would be treated favourably because you are making an attempt to repay. And if you make your repayments on time, you will certainly be improving your credit. A positive credit history would make room for better finance options.
Debt consolidation in most of the cases is a good idea. But you need to be disciplined with your finances, henceforth. So, when you have finally opted for debt consolidation – no more loan borrowing. You don’t want to get deeper into debt. Without a plan and self restraint, debt consolidation won’t work. Debt consolidation with low interest rate would apply if you have only one thing in your mind – getting out of debt.
About the author:
After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK debt consolidation web site uk debt consolidations.To find a debt consolidation loans,debt management,debt advicec that best suits your needs visit http://www.ukdebtconsolidations.co.uk
Debt Consolidation - Is It Really The Best Option For You?
By Roy Thomsitt
It is a very common question that people pose to themselves across the English speaking world: should I consolidate my outstanding debt? There is no single answer to this question, as no two people have identical finances and other personal circumstances. There are also other factors that come into play that can affect the right or wrong of your decision.
In deciding whether to opt for debt consolidation you should take into account the following:
Financial Savings
Being able to save money is, or should be, an important factor in deciding whether to take out a debt consolidation loan. Typically, people who are considering consolidation will have multiple debts which include one or more with high interest rates. This particularly happens when loans are taken out during a period when market interest rates are high. The borrower sees cheaper loans advertised when the market rates decline, but the rates of his loans are fixed at a high level; it is therefore an immediate temptation to switch to one cheaper rate loan and to make interest charges and monthly payments cheaper.
Another type of debt that will bear a high interest rate is credit card debt. It can be attractive to consolidate such debt with any other loans, so that they can be paid off in one monthly payment at a lower level than the current loans added together.
The lower monthly payments give the impression that you are making savings when opting for debt consolidation. However, that apparent saving may be due to a longer term of loan. You do need to make sure you are actually making a saving. You can do this by checking the total annual interest charges for your existing debts, and compare them with what they would be under a new consolidation loan. Only by reducing your interest charges will you be making a true financial saving.
When calculating any saving, be sure to take into account any charges made by the new lender, and any penalties you may suffer through paying off other loans early. Such costs can be critical in deciding whether there are any financial savings.
Improving Your Cash Flow With Debt Consolidation
Debt consolidation can bring great relief to your monthly cash flow, if done properly. So, whether it is personal debt or business debt that you are consolidating, you are given an opportunity to put your finances in better order.
Reducing Stress When You Consolidate Debt
Your level of stress can increase steadily if your finances are in poor order, and each month you find it more difficult to meet loan and credit card repayments on time. If you consolidate your debt you should be able to get the monthly repayment to a more affordable level, thus reducing the potential for stress as you struggle to make a lot of monthly repayments. You may also avoid the hassle of creditors chasing you, by preventing yourself from falling behind with payments.
The Affect On Your Credit Report If You Consolidate Debt
The precise affect on your credit report or status when you consolidate debt will depend on your location. Your new consolidation loan will be recorded, but so long as you maintain your payments, on time, for the duration of the loan, then you should emerge at the other end with a decent credit standing. However, deciding not to consolidate debt may adversely affect your credit status if you subsequently default on any of your loans or credit cards.
The above are just some of the factors that should be taken into account in a decision to take out a consolidation loan, and it is wise to consider everything fully before deciding. If you decide to go ahead, then shop around for the best deal. That will help you for many years to come.
About the author:
Roy Thomsitt is owner and part author of http://www.eliminate-credit-card-debt-now.com
It is a very common question that people pose to themselves across the English speaking world: should I consolidate my outstanding debt? There is no single answer to this question, as no two people have identical finances and other personal circumstances. There are also other factors that come into play that can affect the right or wrong of your decision.
In deciding whether to opt for debt consolidation you should take into account the following:
Financial Savings
Being able to save money is, or should be, an important factor in deciding whether to take out a debt consolidation loan. Typically, people who are considering consolidation will have multiple debts which include one or more with high interest rates. This particularly happens when loans are taken out during a period when market interest rates are high. The borrower sees cheaper loans advertised when the market rates decline, but the rates of his loans are fixed at a high level; it is therefore an immediate temptation to switch to one cheaper rate loan and to make interest charges and monthly payments cheaper.
Another type of debt that will bear a high interest rate is credit card debt. It can be attractive to consolidate such debt with any other loans, so that they can be paid off in one monthly payment at a lower level than the current loans added together.
The lower monthly payments give the impression that you are making savings when opting for debt consolidation. However, that apparent saving may be due to a longer term of loan. You do need to make sure you are actually making a saving. You can do this by checking the total annual interest charges for your existing debts, and compare them with what they would be under a new consolidation loan. Only by reducing your interest charges will you be making a true financial saving.
When calculating any saving, be sure to take into account any charges made by the new lender, and any penalties you may suffer through paying off other loans early. Such costs can be critical in deciding whether there are any financial savings.
Improving Your Cash Flow With Debt Consolidation
Debt consolidation can bring great relief to your monthly cash flow, if done properly. So, whether it is personal debt or business debt that you are consolidating, you are given an opportunity to put your finances in better order.
Reducing Stress When You Consolidate Debt
Your level of stress can increase steadily if your finances are in poor order, and each month you find it more difficult to meet loan and credit card repayments on time. If you consolidate your debt you should be able to get the monthly repayment to a more affordable level, thus reducing the potential for stress as you struggle to make a lot of monthly repayments. You may also avoid the hassle of creditors chasing you, by preventing yourself from falling behind with payments.
The Affect On Your Credit Report If You Consolidate Debt
The precise affect on your credit report or status when you consolidate debt will depend on your location. Your new consolidation loan will be recorded, but so long as you maintain your payments, on time, for the duration of the loan, then you should emerge at the other end with a decent credit standing. However, deciding not to consolidate debt may adversely affect your credit status if you subsequently default on any of your loans or credit cards.
The above are just some of the factors that should be taken into account in a decision to take out a consolidation loan, and it is wise to consider everything fully before deciding. If you decide to go ahead, then shop around for the best deal. That will help you for many years to come.
About the author:
Roy Thomsitt is owner and part author of http://www.eliminate-credit-card-debt-now.com
Credit score - reporting your financial health
By Amanda Thompson
Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not. Credit score is a powerful tool, if you what it is. Credit score is a three digit number which is consequential enough to decide whether you can own a house or a car and has considerable influence on how much your pay on your credit, insurance and other necessities of life.
Credit score isn’t just any random number. Credit score is calculated by a mathematical equation based on a statistical system which awards points based on the information on the credit report.
Credit score can lay open all the info about your accounts, loans, credit limits, balances and payment history. Any information about your public records like bankruptcies, foreclosure and court judgments are also revealed. There will also be a list of people who have made inquiry about your credit report. This information comes from reliable sources like lenders, banks and retailers.
Credit score is affected by payment history. A record of late payments on current or past history will lower your credit score. A lot of debt can lower your credit score especially if you are approaching your credit limit. Length of credit history has its own influence on credit score. A longer credit history is better. Opening multiple accounts in a short period of time can have a negative effect on your credit score. Too many inquiries can be interpreted negatively. Creditors can assume that you have been looking for credit from numerous agencies. Also, existence of too many open accounts can lower your credit score whether they are being used or not.
The three major credit reporting agencies are Equifax, Experian and Trans Union. Interestingly, you can have three different score for each agency if the data used by them is different. Therefore, it makes sense to check your credit report and credit score once or twice a year. In case there is any missed information or incorrect information, you can ask these bureaus to correct it. This way your credit score will carry the best and the most accurate information available.
Fair Isaac Company created the Beacon FICO score which is the most commonly used score. The beacon fico credit score rating range form 350 to 850, 850 being the best. Below 600 would mean bad credit and more in terms of interest rate or even the possibility of refused credit.
Today, 62% of consumers do not realize what credit score can do for them. Credit score matters. It estimates for the lender whether you will pay off the loan and whether you will pay it off in time. Credit score is decisive while determining how much you will be charged for the loan. Loan lender will have the final say with regard to providing you with a loan or not. However, loan lender will be paying attention on various other factors also like equity, job history, income, savings, and the type of loan you want - before making a final decision.
Credit score can expose what you can achieve or not in terms of finances and what debt choice to make. Knowing your credit score would undoubtedly prevent you from deceit at the hand of the loan lender. Strive to improve your credit score. A higher credit score will make you eligible for a number of favourable finance options.
With credit score there is always a room for improvement, even if you have a good score. However, there are no quick fix solutions to improve credit score. However, over a certain time period you can certainly improve your credit score. If you have been unable to pay your payments due to illness, unemployment or personal issues – a short explanation to credit reporting agencies about the circumstances can do wonders.
Credit score is the guide to financial health. You can learn a lot from it. It can give you a direction to move on. So, where to start from when hunting for credit? – CREDIT SCORE.
About the author:
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chanceforloans .To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk
Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not. Credit score is a powerful tool, if you what it is. Credit score is a three digit number which is consequential enough to decide whether you can own a house or a car and has considerable influence on how much your pay on your credit, insurance and other necessities of life.
Credit score isn’t just any random number. Credit score is calculated by a mathematical equation based on a statistical system which awards points based on the information on the credit report.
Credit score can lay open all the info about your accounts, loans, credit limits, balances and payment history. Any information about your public records like bankruptcies, foreclosure and court judgments are also revealed. There will also be a list of people who have made inquiry about your credit report. This information comes from reliable sources like lenders, banks and retailers.
Credit score is affected by payment history. A record of late payments on current or past history will lower your credit score. A lot of debt can lower your credit score especially if you are approaching your credit limit. Length of credit history has its own influence on credit score. A longer credit history is better. Opening multiple accounts in a short period of time can have a negative effect on your credit score. Too many inquiries can be interpreted negatively. Creditors can assume that you have been looking for credit from numerous agencies. Also, existence of too many open accounts can lower your credit score whether they are being used or not.
The three major credit reporting agencies are Equifax, Experian and Trans Union. Interestingly, you can have three different score for each agency if the data used by them is different. Therefore, it makes sense to check your credit report and credit score once or twice a year. In case there is any missed information or incorrect information, you can ask these bureaus to correct it. This way your credit score will carry the best and the most accurate information available.
Fair Isaac Company created the Beacon FICO score which is the most commonly used score. The beacon fico credit score rating range form 350 to 850, 850 being the best. Below 600 would mean bad credit and more in terms of interest rate or even the possibility of refused credit.
Today, 62% of consumers do not realize what credit score can do for them. Credit score matters. It estimates for the lender whether you will pay off the loan and whether you will pay it off in time. Credit score is decisive while determining how much you will be charged for the loan. Loan lender will have the final say with regard to providing you with a loan or not. However, loan lender will be paying attention on various other factors also like equity, job history, income, savings, and the type of loan you want - before making a final decision.
Credit score can expose what you can achieve or not in terms of finances and what debt choice to make. Knowing your credit score would undoubtedly prevent you from deceit at the hand of the loan lender. Strive to improve your credit score. A higher credit score will make you eligible for a number of favourable finance options.
With credit score there is always a room for improvement, even if you have a good score. However, there are no quick fix solutions to improve credit score. However, over a certain time period you can certainly improve your credit score. If you have been unable to pay your payments due to illness, unemployment or personal issues – a short explanation to credit reporting agencies about the circumstances can do wonders.
Credit score is the guide to financial health. You can learn a lot from it. It can give you a direction to move on. So, where to start from when hunting for credit? – CREDIT SCORE.
About the author:
Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is as cautious about her finances as any person reading this is. She is working as financial consultant for chanceforloans .To find a Personal loans,bad credit loans,Debt consolidation,home equity loans at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk
Credit score – for scoring the right loan
By Natasha Anderson
Somebody once said, “There is always a way of knowing your limitations and going beyond it.” It is fundamentally true with respect of credit score. There can be nothing more rewarding during loan borrowing than knowing your credit score. There are many people who are practically unaware of what their credit score is; in fact they don’t even know what it means. This credit scoring system has been used since many years to decide whether a borrower is a credit risk or not. Your credit score is immensely decisive in the acceptance and rejection of your loan application.
What is a credit score?
Credit score is a statistical method to assess the credit worthiness of a prospective borrower. Credit score has all the in depth information about your credit experiences. All information about bill paying history, the accounts you have, and the age of these accounts, late payments, outstanding debts. A statistical method is used to compare credit profiles with borrowers with similar profile. Points are awarded for every factor that promises debt repayment. The total number of points tell how likely it is that you will pay the debt when the payments are due. These points are your credit score which is a three digit number.
Understanding a credit score leads you to the question of how do you get a credit score. Every time you have borrowed credit or used it, you get a score which exhibits how you have managed that credit in the past. The loan lenders rely on a credit scoring system which gives grades. Grades A to D are provided to scores which range from 500 to 620 or above in figures. If your credit grading is either C or D or your credit score ranges from 500 to 535, you are heading in for bad credit loans.
If you have suffered from any previous delayed payments or charge offs – the chances are that your credit report would have its account well embedded in it. Many loan lending companies and banks are wary of people with bad credit score. However, more and more loan lenders have overcome their inhibitions and are offering loans for bad credit score.
Don’t worry, if one day you find that your credit score is bad. Today one-third of the people applying for loans have some kind of credit imperfection in their credit report. Bad credit score is so easy to catch that people get blemished credit score for a reason like not having a permanent residence. Credit score has received new threats like unpaid parking ticket, an ignored traffic fine or even a forgotten library book. This definitely effects the credit reliability of an otherwise good borrower, but it also effects creditor for he might be rejecting a trustworthy borrower.
Credit report is integral to credit score. Submit accurate credit report with your loan application. You can get copies of your credit score through any of the three major credit reporting agencies.
• Equifax
• Experian
• Trans union
Your credit report would have four sections –
• Identifying information
• Personal history
• Public records
• Inquiries
There will general information like your current and previous addresses, your date of birth, telephone numbers, driver's license numbers, your employer and your spouse's name. Credit history will have information about your personal accounts. The public records account is better off blank, for a public record implies you have had a problem. It records financial data like bankruptcy, county court judgments, charge offs, defaults. The last section called inquiries includes a list of everyone who has asked for your credit report.
Now, if you have a bad credit score there are way to overcome this situation. The first basic way to start is paying your bills on time. You can ask your lender to move your payment date if you can’t pay on time. Closing accounts won’t help your credit score. However, closing unused accounts would be beneficial because they are seen by creditors as credit risks. Don’t stretch beyond your credit limit; rather try to keep the balance at 50% of the credit limit.
Credit score requires continuous hard work. With bad credit score it is never too late to start. And with a good credit score you have to give in a lot of hard work. Being educated about your credit score is like a boon. Having a good credit score strengthens your position and you can ask for better rates which is your right. Any information is good information. Therefore, knowing your credit score, would lead to where you should go – towards the right loan.
About the author:
After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK debt consolidation web site uk debt consolidations.To find a debt consolidation loans,debt management,debt advicec that best suits your needs visit http://www.ukdebtconsolidations.co.uk
Somebody once said, “There is always a way of knowing your limitations and going beyond it.” It is fundamentally true with respect of credit score. There can be nothing more rewarding during loan borrowing than knowing your credit score. There are many people who are practically unaware of what their credit score is; in fact they don’t even know what it means. This credit scoring system has been used since many years to decide whether a borrower is a credit risk or not. Your credit score is immensely decisive in the acceptance and rejection of your loan application.
What is a credit score?
Credit score is a statistical method to assess the credit worthiness of a prospective borrower. Credit score has all the in depth information about your credit experiences. All information about bill paying history, the accounts you have, and the age of these accounts, late payments, outstanding debts. A statistical method is used to compare credit profiles with borrowers with similar profile. Points are awarded for every factor that promises debt repayment. The total number of points tell how likely it is that you will pay the debt when the payments are due. These points are your credit score which is a three digit number.
Understanding a credit score leads you to the question of how do you get a credit score. Every time you have borrowed credit or used it, you get a score which exhibits how you have managed that credit in the past. The loan lenders rely on a credit scoring system which gives grades. Grades A to D are provided to scores which range from 500 to 620 or above in figures. If your credit grading is either C or D or your credit score ranges from 500 to 535, you are heading in for bad credit loans.
If you have suffered from any previous delayed payments or charge offs – the chances are that your credit report would have its account well embedded in it. Many loan lending companies and banks are wary of people with bad credit score. However, more and more loan lenders have overcome their inhibitions and are offering loans for bad credit score.
Don’t worry, if one day you find that your credit score is bad. Today one-third of the people applying for loans have some kind of credit imperfection in their credit report. Bad credit score is so easy to catch that people get blemished credit score for a reason like not having a permanent residence. Credit score has received new threats like unpaid parking ticket, an ignored traffic fine or even a forgotten library book. This definitely effects the credit reliability of an otherwise good borrower, but it also effects creditor for he might be rejecting a trustworthy borrower.
Credit report is integral to credit score. Submit accurate credit report with your loan application. You can get copies of your credit score through any of the three major credit reporting agencies.
• Equifax
• Experian
• Trans union
Your credit report would have four sections –
• Identifying information
• Personal history
• Public records
• Inquiries
There will general information like your current and previous addresses, your date of birth, telephone numbers, driver's license numbers, your employer and your spouse's name. Credit history will have information about your personal accounts. The public records account is better off blank, for a public record implies you have had a problem. It records financial data like bankruptcy, county court judgments, charge offs, defaults. The last section called inquiries includes a list of everyone who has asked for your credit report.
Now, if you have a bad credit score there are way to overcome this situation. The first basic way to start is paying your bills on time. You can ask your lender to move your payment date if you can’t pay on time. Closing accounts won’t help your credit score. However, closing unused accounts would be beneficial because they are seen by creditors as credit risks. Don’t stretch beyond your credit limit; rather try to keep the balance at 50% of the credit limit.
Credit score requires continuous hard work. With bad credit score it is never too late to start. And with a good credit score you have to give in a lot of hard work. Being educated about your credit score is like a boon. Having a good credit score strengthens your position and you can ask for better rates which is your right. Any information is good information. Therefore, knowing your credit score, would lead to where you should go – towards the right loan.
About the author:
After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK debt consolidation web site uk debt consolidations.To find a debt consolidation loans,debt management,debt advicec that best suits your needs visit http://www.ukdebtconsolidations.co.uk
Credit score basics
By James Mercer
So now that you have your credit report on the up and up it is time to change your focus and look at the credit score. The credit score is calculated by the data that comes off you credit report.
Credit scoring was first developed in the 1950s, but it has become more complex over the past couple of decades. It is now a critical part of whether giving you money is worth the risk.
The three major credit agencies have developed a generic scoring system based solely on the information reported to them about an individual. Credit scoring is a scientific method that uses statistical models to assess your credit worthiness based on your credit history and your current credit accounts.
When you apply for a home loan, auto loan, credit cards and in some cases even employment, the offering company can order a copy of your credit report and credit score.
Each credit bureau has a common method for calculating their score but each credit bureau calculates its score for you based on the data in its system. There is no uniformity in how much information is collected or requested by each bureau. This is why you can receive different scores from each of the three bureaus.
A computer calculates the score, when requested, by using information from the individual's credit report, such as whether payments are being made on time and how much is owed.
Your credit performance is compared to others with similar profiles to determine your score. The system awards points for each aspect that helps determine who is most likely to repay a debt. A total number of points per credit score helps predict how likely it is that you will make payments on timw and repay the loan.
Credit scores range from 375 to 900 points. If you are looking for a home loan, car loan, refinance, etc., a score of 650 or higher indicate an excellent credit risk. Pretty much the higher the number the better your credit risk. The higher number will give you better rates and a shorter time to get your loan approved.
A score below 620 will more than likely keep you from getting the best rates, as you will be deemed as a greater credit-risk. As you can tell just a little difference in your credit score can make a very big difference. If you have a lower score the loan process will probably take longer and the terms won't be as good as compared to if you had a higher credit score.
The credit scoring system is far from perfect, but is being modified all the time. With the Fair Credit Reporting Act going into effect in September, people will actually have a better chance at being able to correct their credit history without having to pay to get their hands on their credit report.
All this is good news, but another month must pass by before it all finally becomes law. Until then get you can still work to get your credit cleaned up and lower your credit score. You will enjoy the final results...Because Money Matters
About the author:
James Mercer posts articles of interest to those wanting to learn more about the financial world the runs their life Monday-Friday at www.becausemoneymatters.blogspot.com
So now that you have your credit report on the up and up it is time to change your focus and look at the credit score. The credit score is calculated by the data that comes off you credit report.
Credit scoring was first developed in the 1950s, but it has become more complex over the past couple of decades. It is now a critical part of whether giving you money is worth the risk.
The three major credit agencies have developed a generic scoring system based solely on the information reported to them about an individual. Credit scoring is a scientific method that uses statistical models to assess your credit worthiness based on your credit history and your current credit accounts.
When you apply for a home loan, auto loan, credit cards and in some cases even employment, the offering company can order a copy of your credit report and credit score.
Each credit bureau has a common method for calculating their score but each credit bureau calculates its score for you based on the data in its system. There is no uniformity in how much information is collected or requested by each bureau. This is why you can receive different scores from each of the three bureaus.
A computer calculates the score, when requested, by using information from the individual's credit report, such as whether payments are being made on time and how much is owed.
Your credit performance is compared to others with similar profiles to determine your score. The system awards points for each aspect that helps determine who is most likely to repay a debt. A total number of points per credit score helps predict how likely it is that you will make payments on timw and repay the loan.
Credit scores range from 375 to 900 points. If you are looking for a home loan, car loan, refinance, etc., a score of 650 or higher indicate an excellent credit risk. Pretty much the higher the number the better your credit risk. The higher number will give you better rates and a shorter time to get your loan approved.
A score below 620 will more than likely keep you from getting the best rates, as you will be deemed as a greater credit-risk. As you can tell just a little difference in your credit score can make a very big difference. If you have a lower score the loan process will probably take longer and the terms won't be as good as compared to if you had a higher credit score.
The credit scoring system is far from perfect, but is being modified all the time. With the Fair Credit Reporting Act going into effect in September, people will actually have a better chance at being able to correct their credit history without having to pay to get their hands on their credit report.
All this is good news, but another month must pass by before it all finally becomes law. Until then get you can still work to get your credit cleaned up and lower your credit score. You will enjoy the final results...Because Money Matters
About the author:
James Mercer posts articles of interest to those wanting to learn more about the financial world the runs their life Monday-Friday at www.becausemoneymatters.blogspot.com
Credit report basics
By James Mercer
Why should you want to check your credit report rating? How do I get ahold of my credit report? What is shown in your credit report? Now I will take a look at all of this. I encourage everyone to get their hands on their credit report to make sure that it is accurate. In this day and age, your future could be riding on it.
Well...to know the credit worthiness of an individual, lenders often rely on a the credit report. A credit report is a rating made by an authorized credit agency that signifies a person's credit history. A credit report must be checked regularly in order for the individual and his lenders to know his credit rating. It's an important part of the mortgage process, whether it's a personal loan, business loan, refinance or debt consolidation. Anytime you go to a financial institution to get a loan your credit rating will be checked.
Why do you need to check it?
Many things can happen that can effect your credit rating that is incorrect. For example:
1. Utility companies may have reported you as paying late when you didn't. This is something that should be cleared up. It will improve your credit rating. This same kind of thing can happen with anyone that you pay money to on 'credit'. Humans make errors and these errors could be effecting your credit rating.
2. You could have become the victim of identity theft. Right now identity theft is growing rapidly and the bigger the internet gets the easier it gets for someone to steal your identity. If someone steals your identity they can open new accounts in your name, switch card statements and other things that can ruin your credit rating. The credit report will show this.
3. If you have a familiar name, eg John Smith, you could be the victim of mistaken identity. Someone else may have your same name and age. Their credit history may very well be effecting your credit history. Humans do error. If a data processor enters the credit information on the wrong person than you could be shown as having a bad loan in your name. In reality it is a bad loan that someone with your same name hasn't been paying..
4. Seeing what your credit report shows can help boost your confidence. Knowledge is always the key to leverage. With the knowledge of what your credit report says will help you know whether or not you are worthy of the credit you are trying to obtain.
Where to get your credit report
There are three source where you can obtain your credit report:
1. Equifax
2. Experian
3. Trans Union
Each one of these agencies uses their own methods of arriving at receiving credit data and calculating your credit score. Attention should be paid to each one of these companies, as you do not know which company a potential lender is using. If you have checked out two of the companies and company three has errors and the lender is using company three, it could cost you your chance of getting the loan or credit card.
A credit report score can go up to 900, and an increase of 50 points is big. It could enable borrowers to get loans that had previously been denied, and/or getting those loans at much better interest rates. Do you realize a 1% drop in the interest rate can make a big difference in how much you end up paying on a loan. For instance, a $150,000 house may see the monthly payment drop by over $100. This could save the borrower over $35,000 over the life of a 30 year loan.
Looking at the report
Information included on the credit report:
1. Personal information.
A. Name
B. Current and recent addresses
C. Social Security Number
D. Date of birth
E. Current and previous employers
2. Credit history
Most of your credit report contains the details about credit accounts that were/are opened in you name or list you as an authorized user(such as a spouse's credit card).
The details supplied include:
A. Date the account was opened
B. The credit limit or amount of the loan
C. Payment terms
D. Current balance
E. History, this shows if you have been paying on time or not
Closed or inactive accounts, depending on the manner in which they were paid, stay on your report for up to 11 years from the date of their last activity.
3. Inquiries.
Credit reporting agencies record an inquiry anytime your credit report is shown to another party. Included in list are:
A. Lenders
B. Service providers
C. Landlords
D. Insurers
Inquiries remain on your credit report for up to two years.
4. Public records
Matters of public record obtained from government sources such as courts of law including:
A. Liens
B. Bankruptcies
C. Overdue child support
Most public record information will remain on your credit report for 7 years. Tax liens can remain on your report for up to 15 years, and bankruptcies for up to 10 years.
Things not included on your credit rerort
1. Checking or savings accounts
2. Bankruptcies that are more than 10 years old
3. Charged-off or debts placed for collection that are more than seven years old
4. Gender
5. Ethnicity
6. Religion
7. Political affiliation
8. Medical history
9. Criminal records
10. Your credit score
Your credit score is generated by information on your credit report, but is not part of the report itself.
Who Can Look at Your Credit Report?
Anyone with what is considered a permissible purpose can take a look at your report. These include:
1. Potential lenders
2. Landlords
3. Insurance companies
4. Employers and potential employers (usually only with your written consent)
5. Companies you allow to monitor your account for signs of identity theft
6. Some groups considering your application for a government license or benefit
7. A state or local child support enforcement agency
8. Any government agency (although they may be allowed to view only certain portions)
9. Someone who uses your credit report to provide a product or service you have requested
10. Someone that has your written authorization to obtain your credit report
Go out and get your hands on your report and look through it and make sure everything is correct...Because Money Matters
About the author:
James Mercer posts articles of interest to those wanting to learn more about the financial world the runs their life Monday-Friday at www.becausemoneymatters.blogspot.com
Why should you want to check your credit report rating? How do I get ahold of my credit report? What is shown in your credit report? Now I will take a look at all of this. I encourage everyone to get their hands on their credit report to make sure that it is accurate. In this day and age, your future could be riding on it.
Well...to know the credit worthiness of an individual, lenders often rely on a the credit report. A credit report is a rating made by an authorized credit agency that signifies a person's credit history. A credit report must be checked regularly in order for the individual and his lenders to know his credit rating. It's an important part of the mortgage process, whether it's a personal loan, business loan, refinance or debt consolidation. Anytime you go to a financial institution to get a loan your credit rating will be checked.
Why do you need to check it?
Many things can happen that can effect your credit rating that is incorrect. For example:
1. Utility companies may have reported you as paying late when you didn't. This is something that should be cleared up. It will improve your credit rating. This same kind of thing can happen with anyone that you pay money to on 'credit'. Humans make errors and these errors could be effecting your credit rating.
2. You could have become the victim of identity theft. Right now identity theft is growing rapidly and the bigger the internet gets the easier it gets for someone to steal your identity. If someone steals your identity they can open new accounts in your name, switch card statements and other things that can ruin your credit rating. The credit report will show this.
3. If you have a familiar name, eg John Smith, you could be the victim of mistaken identity. Someone else may have your same name and age. Their credit history may very well be effecting your credit history. Humans do error. If a data processor enters the credit information on the wrong person than you could be shown as having a bad loan in your name. In reality it is a bad loan that someone with your same name hasn't been paying..
4. Seeing what your credit report shows can help boost your confidence. Knowledge is always the key to leverage. With the knowledge of what your credit report says will help you know whether or not you are worthy of the credit you are trying to obtain.
Where to get your credit report
There are three source where you can obtain your credit report:
1. Equifax
2. Experian
3. Trans Union
Each one of these agencies uses their own methods of arriving at receiving credit data and calculating your credit score. Attention should be paid to each one of these companies, as you do not know which company a potential lender is using. If you have checked out two of the companies and company three has errors and the lender is using company three, it could cost you your chance of getting the loan or credit card.
A credit report score can go up to 900, and an increase of 50 points is big. It could enable borrowers to get loans that had previously been denied, and/or getting those loans at much better interest rates. Do you realize a 1% drop in the interest rate can make a big difference in how much you end up paying on a loan. For instance, a $150,000 house may see the monthly payment drop by over $100. This could save the borrower over $35,000 over the life of a 30 year loan.
Looking at the report
Information included on the credit report:
1. Personal information.
A. Name
B. Current and recent addresses
C. Social Security Number
D. Date of birth
E. Current and previous employers
2. Credit history
Most of your credit report contains the details about credit accounts that were/are opened in you name or list you as an authorized user(such as a spouse's credit card).
The details supplied include:
A. Date the account was opened
B. The credit limit or amount of the loan
C. Payment terms
D. Current balance
E. History, this shows if you have been paying on time or not
Closed or inactive accounts, depending on the manner in which they were paid, stay on your report for up to 11 years from the date of their last activity.
3. Inquiries.
Credit reporting agencies record an inquiry anytime your credit report is shown to another party. Included in list are:
A. Lenders
B. Service providers
C. Landlords
D. Insurers
Inquiries remain on your credit report for up to two years.
4. Public records
Matters of public record obtained from government sources such as courts of law including:
A. Liens
B. Bankruptcies
C. Overdue child support
Most public record information will remain on your credit report for 7 years. Tax liens can remain on your report for up to 15 years, and bankruptcies for up to 10 years.
Things not included on your credit rerort
1. Checking or savings accounts
2. Bankruptcies that are more than 10 years old
3. Charged-off or debts placed for collection that are more than seven years old
4. Gender
5. Ethnicity
6. Religion
7. Political affiliation
8. Medical history
9. Criminal records
10. Your credit score
Your credit score is generated by information on your credit report, but is not part of the report itself.
Who Can Look at Your Credit Report?
Anyone with what is considered a permissible purpose can take a look at your report. These include:
1. Potential lenders
2. Landlords
3. Insurance companies
4. Employers and potential employers (usually only with your written consent)
5. Companies you allow to monitor your account for signs of identity theft
6. Some groups considering your application for a government license or benefit
7. A state or local child support enforcement agency
8. Any government agency (although they may be allowed to view only certain portions)
9. Someone who uses your credit report to provide a product or service you have requested
10. Someone that has your written authorization to obtain your credit report
Go out and get your hands on your report and look through it and make sure everything is correct...Because Money Matters
About the author:
James Mercer posts articles of interest to those wanting to learn more about the financial world the runs their life Monday-Friday at www.becausemoneymatters.blogspot.com
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