How Are Finance Charges Calculated
June 30, 2008
Whether you are shopping for a new credit card or wondering about the one that you may already have, knowing how to calculate the finance charge applied to that card is important. First, however, it is equally important to know what finance charges really are.
A credit card finance charge is the amount of money that you pay to the credit card company in order to use their credit. This is not the same as the purchase amount balance. The purchase amount balance is the dollar amount of the purchases that you made using the card. If you pay off the purchase amount balance within the stated amount of time that the company allows, you will have no finance charges applied to the amount. It is when you carry over your balance that finance charges are triggered and added to your account.
Finance charges are calculated using the amount of your outstanding balance and APR. The APR is the Annual Percentage Rate and all credit cards use them to figure finance charges. It is important for consumers to understand that the ARP can vary from one company to the next, and it can even vary within the same company. It is for this reason that consumers should always look for the companies with the lowest APR’s. This will save you money in the long run.
There are several ways that credit card companies can calculate the finance charges that they apply to consumer credit. Many people do not realize it but the method that is used can make a difference in the amount of money that you will have to pay. Here are some of the methods that credit card companies use to figure finance charges on your outstanding balance:
They can calculate using one billing cycle or two billing cycles.
They can use the adjusted balance, previous balance, or the average daily balance.
They can exclude or include new purchases in the balance.
You will normally find that you have a lower finance charge when the company uses what is known as one-cycle billing and uses the average daily balance method which excludes new purchases. Much of this, however, depends on the balance and the time of the month that you make purchases and payments.
The next lower finance charge method is the adjusted balance, followed by the previous balance method. You can see which method the company is using by reading the bill that you receive. This information is usually contained on the back side.
It is also important that you understand that some companies will have a minimum finance charge system. When a credit card company uses this system you will be charged that set amount even if your calculated finance charge is less than that amount.
Of particular importance to some credit card holders are the cash advance programs that come with some cards. Consumers should be very careful when using credit cards for cash advances. Many companies that offer cash advances treat those advances differently than they do purchases. Before you use your credit card for a cash advance, make sure you look for the details of how you will be charged for that advance.
You will certainly want to know what the APR is for cash advances. Keep in mind that this may be significantly higher than the APR that is used for purchases. You should also investigate the fees that may be applied to the transaction. Fees are in addition to the finance charge that you will have to pay.
Lastly, find out how your payments will be credited. Some companies will apply your payments to your purchases first and then to any advances in cash that you have taken.
Use your credit card wisely and keep track of your finance charges and you will enjoy your credit more fully and avoid some of the pitfalls that many consumers experience.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Bank Charges and Best Credit Cards
Surging Inflation Impacts Upon Consumer Finances
June 30, 2008
Earlier this week the publication of a new study suggested that the British public is experiencing much greater financial pressure than the government figures indicate.
According to statistics released by the Motley Fool, some nine out of ten consumers believe that the cost of living is rising by 7.3 per cent - about three times higher than the official number of 2.5 per cent. Overall, two out of three believe their personal inflation lies between four and nine per cent, with one in five people claiming is stands between ten and 15 per cent.
Meanwhile, those in Scotland suggested that inflation currently stands at 6.3 per cent - a fall from the 7.5 per cent noted in January. On the other hand, Northern Ireland consumers could be facing a particular increase in difficulties with their day-to-day finances as they claim to face an inflation rate of 8.1 per cent - the highest figure noted in the country and up by 0.4 percentage points from six months ago.
David Kuo, head of personal finance for the firm, said: “Older people, especially those who rely on retirement income, are some of the worst affected. Furthermore, people relying on the basic state pension, which will only rise in line with government inflation figures, may feel the pinch even more. Inflation is sometimes called the hidden risk because it quietly chips away at the buying power of the pound in our pockets. But it’s hard to disguise a chip when it becomes a chunk.”
Consequently he suggested that inflation is not “whittling away” consumers’ income as official figures suggest but rather is leading towards a significant rise in debt problems. “For one in five people, the buying power of the pound in their pockets is being eroded at over twice this rate,” Mr Kuo claimed.
Consumers aged 58 and over claimed inflation rates currently stand at 7.1 per cent, which could see these people particularly facing debt problems. Meanwhile, those between 42 and 49-years-old claimed the highest rises in living costs at 7.6 per cent. However, although young people were said to have been the least affected, they claimed living costs had risen to 6.9 per cent a rise of a full percentage point since January.
But, in a challenge to the Motley Fool figures, research from Birmingham Midshires’ Life 2 campaign has indicated that those over the age of 55 see themselves are being financially comfortable. Some 19 per cent of those in the group claim they can afford the social life they want, with one in ten reported to be “totally satisfied” they can afford to indulge themselves.
However, only one in 50 of 18 to 24-year-olds were said to hold this level of satisfaction. The study from the financial services firm also indicated that just over half (55 per cent) of consumers aged above 55 with both a state and personal pension account say that they are confident that they can afford day-to-day expenses in later life, the largest proportion recorded among any working group. Meanwhile, this figure was said to have fallen to 15 per cent for Britons with just a state pension.
Jason Robinson, director of savings operations for Birmingham Midshires said: “The over - 55s are facing enormous change in their lives and many may be apprehensive about their retirement.”The director added: “It’s great news that many people can look forward to financial and social freedom in later life - but, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be.”
However, with inflation rates higher than officials figures and the government announcing yesterday that interest rates are rise to 5.75 per cent consumers of all ages could find their day-to-day finances squeezed.
Abbi Rouse writes for 1 stop finance shop where visitors can apply for UK debt consolidation loans and also focuses on cheap personal loans and bad credit secured loans for UK residents.
To Win Or To Fail Tips For Successful Trading
June 29, 2008
Investing money entails a great amount of risk. Like they always say, “It takes money, to make money.”
Money doesn’t grow on trees, you know.
But it doesn’t necessarily mean that to achieve good profits, one has to invest heavily and risk greatly. That is not the case all the time. A well-informed investor can make sound decisions that will help him earn considerable profits with minimal loss.
The first lesson a successful businessman will tell you is that any endeavor carries potential risk along with potential gain. The trick is to determine if the profit is worth the risk. If it is, it is now time to consider if you are willing to take the risk.
So before you start trading, ask yourself this:
a.) What are your achievement goals?
b.) Are your investments going to lose money?
c.) Are you willing to take bigger risks for better profits?
Setting your achievement goals will allow you to know how long you’re willing to wait for a stock to gain profit. It will also give you a limit on how much you’re willing to lose. It will also give you an idea on how to go about investing in a stock.
If you choose a low-return investment, it will mean that either you increase the amount you invest or increase the length of time invested.
After you have made up your mind with the above questions, there are some tips you may want to use to evaluate your trading philosophy.
a.) When to invest. Ordinarily, you want to trade all the time. You get excited when you see shares go up or when they fall down. You make decisions based on a whim and factors that don’t usually affect a stock in the long run. The best traders wait 50% of the time waiting and studying how a stock performs. They do not trade every day and all the time.
b.) Discipline yourself. You are so excited to make trades that you trade on a stock that looks half-decent enough rather than waiting for the best stock to come along.
c.) Small moves big payoffs. Don’t waste time dabbling in so many small stocks with minimal profit. Watch out for big stocks and concentrate on a few.
d.) Do not be too emotional. Making money is exciting. Losing money can get very depressing. Detach yourself from your emotions; otherwise, you won’t be able to look at things objectively.
Trading stocks is a high-risk, high-profit venture. Dabbling in the stock market half-cocked is suicide. Take your time. Study, research and be patient. After all, it’s your money, so it’s your loss.
Find out more about stocks and shares at http://stocksandshares.us
Day Trading Your Way To Success
June 29, 2008
If you are interested in day trading you first need to know what it is all about and to understand the basics of day trading. For starters, a day trader is a person who is very active in the stock market and makes several trades a day in an attempt to make quick gains by buying and selling stocks in a short time span.
As the market is never the same day to day, no one particular day trading strategy will work each time. To be successful, you first need to understand how the market works and get a feel for the market.
This includes recognizing the stocks’ basic trend, the long and short setups, when to enter a trade, and where to place stops. Another very important basic is how to protect your profits and minimize losses.
Once you have learned the basics and are ready to try your first day trade, here are some tips and guidelines you should keep in mind that is essential to your success as a day trader.
Being a day trader requires a lot of time and practice before you get used to the everyday volatility in the market. Do not expect to become an expert day trader overnight. No matter how many books you have read or day traders you have watched, that will not make you an immediate expert.
There are day trading websites that simulate trading. Practice with their trading platform first before trying out the real thing. It could save you a lot of money and you will learn the ropes faster this way.
If you are ready for real live trading, do not be scared by the thought of losing money. There are ways to minimize your loss such as with stop orders.
If you lose money, do not worry, as some loss is to be expected. Just remember, with increased experience and sensitivity to the market, you will start turning a profit soon.
If you profit large sums of money, stop trading. Do not gamble it away by trying to gain even larger profits. You can always trade another day.
Sometimes the market will not perform as you expected. When you encounter this situation, it is best that you do not trade at all.
Once you gain more experience in day trading, you may be able to predict the direction of a stock price. However, try not to pick top stocks or bottom stocks. This is one of the most common mistakes of a beginner.
If you cannot predict where the market is heading, it is best if you stand aside and wait, or you can always go home and trade again another day.
It is a good idea to record all of your day trading results. This way you can learn what works and what does not, and be more effective in trading.
Observe good traders. Look at how and when they sell or buy. Generally, good day traders often buy on bad news and sell on good news.
Beginners often get emotional in their trades. Avoid this at all cost, stay emotionally detached and professional.
Learn to trust your instincts. Relying too much on analysis may mean letting a few good trades slip away from you.
As you gain experience, you will see that different day trading strategies are required on different days and required on different stocks. Be flexible.
Bad day traders often focus on too many stocks that are not manageable and often lose track on where each stock is heading. It is wise to limit your stocks in manageable numbers.
With patience and practice, you can be successful in day trading, and as your experience grows so do your profits. Everyday you can learn new day trading strategies in the market, which you can use to your advantage.
For a more in-depth look at day trading drop by Susan’s site at Day Trading Strategy. Susan also enjoys writing on a variety of topics at Health and Fitness Hub.
How To Build Your Credit Card Rating
June 28, 2008
Almost everybody knows the main advantages of owning a credit card. Credit cards are used all over the world and they are the most popular payment system these days. It is easier than ever to pay airline tickets or holidays using it, in almost every country. But the credit card rating is paying a significant role in the cardholder’s life. If the cardholder has a very good credit history, this will help him to gain more advantages in the future. If the credit rate is bad, it can be improved. The user can apply for a credit card, use it and pay off the entire balance on time. In a few years their rating with the issuers (credit agencies) will be very attractive. The cardholder will be considered a borrower who repays on time.
The APR (annual percentage rate) is very important too; it is a periodic rate, the result of the annual amount, used to calculate the finance charge on a balance. A credit bureau is maintaining the customer credit report. This report contains the cardholder’s name, address, credit payment history and the social security number. Banks will report any negative or positive credit payment information. Some reports will come also from the power or telephone companies. This information will be considered when the cardholder is asking for a loan, or a credit card. The credit bureau will decide whether the bank will lend or withhold the money.
Credit cards make it easier for the cardholder to obtain loans for a home or a car. The cardholder must deeply understand the way the credit card works. The credit card balance will also include added interest that has to be paid. It can be an important factor when the cardholder rents an apartment. The only condition in obtaining a good credit card rating is ensuring that all bills are paid on time.
A good credit rating will prepare for a happy future too. Choosing a credit card is sometimes a really difficult decision. The credit cards features such as the APR (annual percentage rate), annual fees, repayment requirements are important things to consider. To establish a reasonable credit rating, all the bills must be paid on time. It is also important to not have larger amounts of outstanding credit. The cardholder must ensure that he can afford to repay what he has borrowed. If a positive credit history is not established, credit card building is a must. Many customers are unable to use the credit cards benefits because they don’t know the issuers conditions and carry a balance from month to month.
The cost of creating and maintaining a credit card account depends on the issuer and on the customer’s behavior. Credit card firms are constantly looking for new modalities to make their rates more attractive.
Visit Credit-Wisdom.com Unraveling the best in Credit Cards. Click here for Business Credit Cards More information on:“American Express One Credit Card”
Short Sale Real Estate Investing
June 28, 2008
Short sale investing involves buying a piece of property from a lender for an amount less than the balance owed on the property. Basically, there are two types of short sale realty investments. The first type refers to when you purchase a property, foreclosed by a lender listed with a realtor. In this type, you simply offer the lender, who has now become the owner on record, less than what is owed on the property. In this case, you can offer less than the balance that was due on the foreclosure. Such a short sale, realty investment calls for a good relationship with the realtor. The other type involves negotiating directly with the lender of a motivated seller. It is essential to be determined in the negotiation process, mainly in reaching the right person at the lender Real Estate Owned (REO) department and then to get the price of your choice.
The key to be successful in the first kind of short sale, real estate investment lies in forging a relationship with a reliable local realtor. You can always search for one or two realty offices in your area that handle majority foreclosures and short sale, realty investments. In order to build your relationship with the realtors, you need to inform them about your ability to buy. Make sure you follow through, once you make the offer. It will help the agent know that you are the investor to turn to, whenever he has a deal regarding short sale, realty investment.
There are three fundamental steps that can be incorporated, in order to be successful with short sale, real estate investments. They are as follows:
. Search for the properties: The first step to success in a short sale real estate investment is to search for properties. This can be accomplished through regular realty advertisements and looking for distressed or overgrown property. It helps you get calls from sellers close to foreclosure.
. Get the seller on your side: The second best way to earn success in this type of investment is to get the seller on your side. In order to do so, you need to listen, communicate and empathize openly and honestly with the seller, regarding your plans. Besides, you will also be required to answer all questions and speak to the concerned parties frequently, so as to keep the channels of communication open. It helps to keep doubts out of the picture.
. Find the right person at the lender to speak with: Though it is not easy to find a reliable person, but this step is essential. More often than not, the first person you speak to will not necessarily be the right person and you may require cross certain hurdles to finally reach the person with some authority. You would certainly require patience in order to get the job done.
Short sale realty investment is considered to be lucrative for building wealth too. Owing to the increase in foreclosures across the country, the trend of learning and applying short sale realty investment skills is likely to continue.
Real Estate Investments are now easy with Realnet USA’s step by step Real Estate Investing process. We help you find your Real Estate Investment, to view live inventory please visit http://www.realnetusa.com.
Private Moneylenders The Real Estate Investors Secret Weapon
June 28, 2008
Real estate investments are very lucrative and offer a variety of other benefits such as tax deductibles and asset appreciation. However, it is beyond the financial means of most real estate investors to pay the cost of their property up front. Such investors have to obtain a home loan from private lenders or financial institutions to bear the cost of their new home.
It is very common for real estate investors to procure finance in a range of eighty to hundred percent of the property value. The homeowner is required to make monthly payments to the financial company for an agreed period.
Private moneylenders or ‘hard’ moneylenders are generally third party lenders that provide the necessary funds to buy or renovate your home. In exchange, the homeowner agrees to pay a certain percentage of the profits earned after selling a property after renovation. This form of lending is mutually beneficial to both parties. It guarantees lenders better returns for their money, as the rate of interest is quite high.
The loans, often short-term loans, are especially beneficial to real estate investors who have a financial need for a very short while or who have been turned down by other financial institutions due to poor credit score. Another advantage of obtaining loans from private moneylenders is that they offer fast loans unlike many other financial companies and banks that offer loans after following a long internal procedure for loan sanctions. As a result, investors are drawn to such lenders owing to the flexibility and convenience offered by private moneylenders.
Typically, private moneylenders are most eager to work with people who have a promising venture. If a venture is good enough, they are willing to overlook their credit records. This form of financing can prove to be extremely expensive as such loans attract very high interest rates as compared to other banking and financial institutions. Another difficulty is that such lenders are quite hard to locate as compared to other traditional lenders.
People, who have surplus liquid cash and are on the lookout for ways to multiply this amount in a short period of time, become private moneylenders to provide funds to borrowers who are in need of quick cash.
However, it should be noted that all private moneylenders differ in their dealings and the amount of funds provided and the repayment terms may greatly differ. They may charge an interest in the range of 12% to 18% and have a well-drafted loan agreement to secure their investment. They may finance 50% to 75% of the home value post renovation for a period ranging from six months to five years.
The funds can be held in trust or escrowed until the renovation project is fully completed.
Discover exactly how Sal Vannutini combined two of the easiest (yet brutally powerful) real estate investing strategies and made an insane $31,510 Profit In Just 49 Days… And How You Can Do The Same!”. Visit FixerUpperFortunes.com
How to Find the Best Commercial Real Estate
June 27, 2008
For most people, jumping into the commercial real estate market is done with sights set on millionaire land owners who have made their fortune buying, renovating and selling properties over and over and over. One of the keys to this success is finding the right commercial real estate properties to turn over. Do you go with a high-priced property and just hang onto it for a few years, letting it gain in value and then sell it or do you take a more out of the way property, fix it up and make it valuable then sell it? These are all options available out there for a potential buyer, but which one is right for you?
The best deals out there will give the biggest return on your investment. It is not unrealistic to look for deals that could give you upwards of two to four times the profit of what you invested. The amount of paperwork and red tape you have to go through is essentially the same weather it is a big deal or a small one, so try to maximize each deal and make it as profitable as possible.
The methods you use to find the best deals are important. You can rely on your own two eyes and simply go scout possible real estate deals that could turn a huge profit or you could enlist the help of a professional. There are real estate brokers that specialize in commercial properties but since they are hired by the people looking to sell, you might not get a straight answer on a particular property since all they want to do is sell it. The best thing to do if you are going to seek the advice of a commercial broker is to make a firm list of qualities you are looking for and dont deviate from them. The broker may try to sell you something you are not interested in so be careful. One advantage in using a broker is getting listings that have not officially gone on the market yet. This can help you get a head start in placing a big for a unit since no one else will know about it yet. Another good tip is to utilize the Internet. There are many sites out there dealing with property values and commercial sites that are for sale and many sites have excellent search criteria that can help you find what you are looking for quickly and easily in a non-confrontational environment.
One final place that is a great source of commercial as well as residential properties is auction houses. You may have to register with these houses and pay a small fee, but it is a sound investment since the auction house will be offering properties as a significantly smaller cost to you than if you were to buy it normally. In addition, these auction houses tend to send out notifications of properties that are about to go on the trading block. This can give you the time you need to research the deal, see if it falls within your criteria and then you can decide if you are going to bid on it or not.
Overall, there are many different options out there available for those looking to find sound commercial properties to invest in. If you do the proper research, you can find the one that is right for you.
We will buy your house As Is Now in any condition including Ugly Homes. If you need to Sell Your Home Fast Orlando, Jacksonville, Atlanta, Charlotte, Cincinnati, For Lauderdale, Houston, Tampa and Fort Myers. Call 1-800-AS-IS-NOW (800-274-7669)
Protecting Your Good Credit
June 27, 2008
It’s safe to say that if you have built a good credit score, you’d like to keep it that way. Who wouldn’t? There are a few simple things to remember when you are maintaining your credit score. Even though some of them may seem too simple to even mention, unfortunately, life is sometimes just distracting enough to make you forget about your credit score completely. Don’t fall into this bad habit. Maintaining your good credit is a matter of discipline.
Remember to make bill payments on time. This is crucial to keeping your credit score safe. It is almost like being in school again and showing off a great grade to your peers, because just like your peers, the creditors are just as proud of you for doing something great. By paying off your bills, not only are you preventing those annoying collection calls from occurring, you are improving your score. The reason for this is that when you are caught up with your bills, lenders see this as being a good sign that you will be able to pay back any money that you may request and will more than likely give you the money that you request because they know by your credit history that you are capable of making responsible payments. If you have had problems remembering when to pay bills before they are due, write them on the calendar every month. A simple reminder may be just what you need to help get those payments in on time.
If you have a good credit score, but can foresee rougher roads ahead, maybe you should consider debt consolidation. This is a way to combine all of your bills into one payment that is distributed amongst the companies that need to be paid. This takes all the guess work out of paying bills, no longer do you have to consider how much to pay and when to pay to whom. You see, even though you are paying what might appear to be a larger payment, in fact you are paying a lower payment to each individual company, but they are all getting their money on time. Creditors see this as being very responsible and it will most definitely improve your score or maintain an already satisfactory one.
Simply remembering to pay your bills on time can keep your score at a great level with no chance of falling. When you are responsible in bill payment your credit score will reflect just that-this is why it’s called “Credit”, because you are gaining person creditability for your financial history.
Tom Ambrozewicz, mortgage and real estate broker since 1993, is one of the pioneers in using breakthrough audio technology on his web sites. You can read or you can listen to professional narrator reading to you. You can check all credit tips at Ask-How.info now.
Get Into The Habit Of Planning
June 26, 2008
I am not used to doing planning for my personal life. Usually after a day of hard work, I want to sit down and relax. Since I perceive the task of relaxing is simple, I do not really plan what I want to do in my leisure time. I will simply do what I like to do at that point of time. As times past by, I have ended up with a habit of not planning for anything that I perceived as simple. But the moment that I perceived a task to be very complex and complicated, I will be forced to plan.
For example, if I want to conquer Mount Everest, I definitely need to have a plan. Why? This is because I feel that is a very difficult task to accomplish since I am just an average physically fit person. I will definitely need a lot of training and preparations. The plan must be very detailed and measurable in terms of progress. One part of the plan will focus on physical training to ensure that I physically fit before the actual trip to start scaling Mount Everest. Another part will be focus on the itineraries and equipments required for the trip. The next part will focus on gaining knowledge of the climate and the area of Mount Everest. The last part will be on the route to take for the trip.
In fact, each part of the plan can be broken further details. For example, the training part of the plan can be a training program that lasts 1 year. For the first month, I will need to run 10km and workout 1 hour in the gym everyday. For the second month, I will need to run 10km and workout 3 hours in the gym everyday. For the third month, I will need to run 10km and workout 5 hours in the gym everyday and so on. By end of 6 month, I must be fit and ready. I may start to conquer lower peaks first to gain experience. Based on the experience gained, I will revise my plan for conquering Mount Everest.
Conquering Mount Everest is like trying to be a millionaire when my financial health is just average. Thus, if I want to accumulate great wealth of one million, I will definitely need to have a financial plan as mentioned in the Rich Dad series. The plan will be complex and complicated since there are different areas that I need to train and prepare so that I can be successful in accumulating great wealth. What are the possible areas that I may need to look at?
Firstly, I must get myself financially educated on managing my own personal finance. If I cannot manage small money, then I am not ready to manage big money. This is like if I cannot complete running 5km in 30min hour, how can I possibly finish 10km in 1 hour?
Secondly, I must find a team of people to help or coach me so that I can achieve and accumulate great wealth. For examples, I will need a financial planner to help me with the financial plan. I will a successful mentor to coach me on how to be a successful person by changing my mindset and breaking my limiting beliefs. I will need a lawyer to advise me on legal matters so that I will not face the risk of losing money due to legal issues. I will need an accountant to advise me on accounting matters. I will need an insurance agent to advise me on insurance matters so that I will be protected financially.
Thirdly, I will need to gain experience by accumulate small wealth first. Using the experience gained, I will revise my plan and aim for higher goal. For example, I should aim to accumulate a wealth of one hundred thousands dollars as a stepping-stone to reach my goal of accumulating one million dollars.
Next, I will need to train up my mental health to face rejections and setbacks. Not everything works according to plan. There will be hiccups and setbacks. I must be strong enough to face such situation and continue to pursue my financial freedom.
As you can see, there are many possible areas to work and improve on. Planning is definitely required to achieve and accumulate great wealth. If I cannot plan and execute simple task well, I will not be able to plan and execute complicated and complex task well. Thus, I feel that it is important to get into the habit of planning as part of the preparation to achieve great wealth.
* DISCLAIMER *
The author, publisher and distributors particularly disclaim any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.
Max Ng shares about his struggle for financial freedom at http://www.richdadsecrets4me.com
Get a free sample of his book “Your Greatest Gift! Why Waste It?” at http://www.yourgreatestgift.com
