Reducing Debt Through Lower Interest Loans
November 30, 2006
It happens to the majority of us, credit card debt accumulates and before we quite realize it, we are carrying a debt load that is far beyond our means. When this happens, we need to take immediate positive steps to knock down the debt as quickly as possible. One of the most efficient ways to do this is to reduce the amount of interest we pay by shopping around for a better rate and having our balances transferred over. By doing this, we pay more towards the principal, thereby reducing the duration of the loan and saving ourselves potentially thousands of dollars over the lifetime of the loan.
Typically, a credit card carrying a balance of $5000 dollars, with an interest rate of 17.5 % and a minimum monthly payment of $150 would take you 3 years and 10 months to pay off. The total interest accrued would amount to $1, 846. However, if you were to transfer your credit card debt to a lower interest rate loan of 7 %, that same $5000 paid in increments of $150 a month, would be paid off in 3 years, 2 months, substantially reducing the amount of interest to just $564. That’s a savings of $1,282.
Brain Snappers and Other Wall Street Nonsense
November 30, 2006
The last time you spoke with your broker did he use any of the following words? Diversification, Price-to-earnings ratios, discretionary trading, lifting a leg (he’s talking to you not your dog), leverage, divergence, fee-based compensation, escalator clause, tactical asset allocation and other mesmerizing words to place you in stupefying shock.
Brokers do that to let you know that you don’t know anything about the market and you must allow them to make decisions for you. You don’t know the language. You are just too dumb. Another mushroom.
Wadda ya’ mean mushroom? Didn’t you know? Most customers are considered mushrooms. A mushroom is grown in the dark and fed horse manure. Now you understand why they treat you that way.
Then try to get him to explain commission structures of mutual funds. Oh, you’re not allowed to ask that. You might want to read page 35 in the January 31, 2005 issue of Newsweek magazine for an excellent breakdown of this Wall Street scam. Maybe you better not. You will get mad at your broker.
Student Credit Cards 101
November 30, 2006
If you’re a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?
- Because financial debt is one of the main reasons that many students end up dropping out of college.
- Because your college years can be some of your most memorable-and some of your most costly. They don’t, however, have to be the beginning of an adult life strapped with debt.
- Although you may still feel in limbo between your teen years and adulthood, it’s time to take charge of your finances and manage them as an adult. The sooner you do, the sooner you’ll be able to start saving and spending your own money.
For those new to credit cards and for others who know all about credit, let’s go back to the basics.
Why do credit card companies court college students?
It’s obvious by the friendly representatives who offer a free t-shirt or CD just for signing up in the student center. Or the applications slipped into bookstore bags. Or mail boxes crowded with card offers. Credit card companies want college students to carry their card.
Buying a Home With Bad Credit - Get Approved With a Recent Bankruptcy or Foreclosure
November 29, 2006
A few years ago, if you had a bankruptcy or a foreclosure on your credit report, you could forget about trying to get a mortgage loan. If you were lucky enough to find someone who would finance you, your interest rate would be through the roof and plan on putting 10-20% down.
But today, this is not the case. There are many programs available today to help people who have recently suffered a bankruptcy or foreclosure to get a mortgage loan or mortgage refinance loan.
There are two things to do if you are in this situation:
1. Get yourself a free copy of your credit report from all 3 major credit bureaus, look over everything, do you see any mistakes? Make sure everything included in your bankruptcy or foreclosure reports accurately on your credit report. Make sure those accounts involved in a bankruptcy or foreclosure are not showing something else like collection or charge-off.. That could make your score much lower than it needs to be. If you have a bankruptcy or foreclosure, you want everything involved to say so, so it is all under 1 circumstance, instead of many. You can dispute all errors on your credit report online nowadays. It takes about 15 minutes. You can do it right on the website of Equifax, TransUnion or Experian.
How to Check the Status of Your Tax Refund Online
November 29, 2006
So, you were pleasantly surprised to learn that you are getting a refund on your taxes. Congratulations! The question for most taxpayers expecting a return is, “Where is my refund?”
Check Your Refund Status Online
The easiest way to check on your refund is to ask the IRS through IRS.gov. On the home page of the site, you will see a “Where’s My Refund?” link. Using the service is fairly easy. You will need a copy of your tax return to provide the necessary information to get the status of your refund. Specifically, you need to provide your social security number, you tax filing status and the exact amount of your refund. The reason the IRS requires all of this information is purely for security purposes, to wit, the agency wants to make sure it is giving access only to the taxpayer. Again, all of this information should be on your return. If it is not, something is very wrong!
Once you submit the required information, the IRS will provide online results typically showing:
1. That the return was received and is in processing;
2. The expected mailing date or direct deposit date of your refund; or
If You?re Looking To Borrow Larger Sums of Cash a Home Equity Loan Could Prove Ideal
November 29, 2006
There are a number of different loan products available today, and the one that you select will depend upon your circumstance and budget as well as on the amount of cash that you need to borrow. If you are a homeowner and you’re looking to borrow a fairly substantial sum of money at a low rate of interest, you may find that a home equity loan will prove ideal for your needs. This type of loan can benefit you in a number of ways, and if you have the equity in your home you could get a really affordable loan.
The equity in your home is the market value of the property minus any outstanding mortgage or other loans secure upon it. The balance is the equity, and with these loans you can borrow against this equity. As property price have risen quite dramatically over recent years, many homeowners have found themselves sitting on quite a nest egg, giving them the leverage to borrow money against the property if the need arises.
Dealing with Thingitis
November 28, 2006
Debt is quickly becoming an epidemic in America. However, through the past 50 years, America has not seen such large domestic growth. Its citizens have higher salaries now than their predecessors, yet personal debt continues to rise.
Why is this happening? I believe that the number one reason of increasing personal debt is a disease that I call thingitis.
What is Thingitis?
It is a disease characterized by the insatiable appetite of the common citizen to have more and more things in their home. As a recent newlywed, Iā??ve seen this disease first hand with my loving wife. No matter how many picture frames, candle holders, and kitchen appliances that we received as gifts during our reception, my wife will continue to bring home more.
Thingitis is this constant craving for more. More clothes, larger cars, larger homes, bigger tvs. The effects of the disease are easily seen in the bank statements. With the larger homes comes the larger mortgages, and with the bigger tvs come the larger credit lines.
Poor Credit? Get a Sub-Prime Mortgage Now, and Refinance to a Conventional Mortgage Later
November 28, 2006
There are great mortgage loans for people with poor credit, and yes, you can still save thousands of dollars. In order to receive preferential treatment for mortgage professionals, you’ll need a credit score of 680 or better (this is considered A credit). If you have a score that is less than 600, you’ll fall into a sub-prime loan category. Now, you’ll need to get creative, in order to get your mortgage and not lose a fortune.
A sub prime lender will offer you virtually any type of loan that a conventional lender will offer, but you’ll pay a much higher interest rate, as a risk premium. In other words, these lenders consider people with low credit scores risky borrowers, because they may have some poor payment history. Lenders like people who pay all their bills on time, even though it is not at all uncommon for people to occasionally miss a payment for one reason or another. So, the sub prime, or non-conforming, or niche, lender says, "We’ll take the risk, but we want to make a lot more money, in order to do it." Don’t worry. You can get it done, and improve your situation to refinance at a better rate later.
Trading Tips No 1: Learn How to Trade The Moment of Truth
November 28, 2006
So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a few. However, having the tools and rules to trade markets successfully, year in and year out, is only half of the challenge. The other half is far more daunting and achieved by even fewer investors - I am talking about good old-fashioned discipline. That is, discipline to follow your indicators and rules without fail - every trade entry and every trade exit. This is why it is critical that you learn how to trade. This is the ‘moment of truth’ in the life of every trader or investor.
Here is a test. Are you able to consistently pull the trigger on your sell signal when all the ‘experts’ are screaming, ‘buy’? Do you ever give your stop loss a little more room because you can’t stand to lose, not even one trade, only to have the market gap open the next day against you? Are you always available during the trading day to follow your trades? Do you let your emotions cloud your thinking and cause you to violate your own trading rules in the ‘heat of battle’? If you answered yes to any or all of these questions, you are absolutely normal and that’s the reason why it’s so difficult to trade successfully even with a good methodology. If you fail to learn how to trade , you are your own worst enemy, when it comes to disciplined trading or investing.
Stock Market Leaders and Laggards
November 27, 2006
Leaders are stocks that breakout immediately when the market confirms a new rally. In the first several weeks, strong stocks with leadership ability will breakout on volume above their 50-day average. Some of these stocks will breakout on the largest volume ever. Typically, newer stocks that have come public in the past few years will have the most strength for sizable gains.
As multiple stocks breakout from similar industry groups within larger sectors, a confirmation of broad leadership is established. "Sister Stocks" will usually move in crowds and lead the way in similar fashion. Their charts will show some resemblance and their action with be closely related. When one leader goes up, so will the others in the group. It’s not an exact science but almost anyone could chart the progression of leaders during the beginning stages of a rally.
Laggards are stocks that don’t breakout immediately when the market confirms a new rally. They become laggards if they wait a few months to finally breakout while dozens of other stocks have already gone on to excellent runs. Investors must be on the lookout for a healthy correction after several strong months of advancement within a specific industry group or broad sector. As the correction materializes, the original leaders will be poised to continue their run so long as the ‘M’ in CANSLIM is still positive. ‘M’ stands for market health.
