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Credit Card Default

Credit Card Default

Credit Card Default

Credit Card Default – Occurs in the event that you have a card balance, and you stop making payments for a certain length of time. Your path to card default is not pleasant and replete with increasingly aggressive telephone calls from the bank you owe the balance to. Let’s investigate a typical scenario:

  1. You open a $10,000 credit line with XYZ Bank.
  2. You spend $7,000 on a great plasma TV, a couch, and a stereo system.
  3. 27 days elapse.
  4. You lose your job.
  5. Because of inadequate financial planning, you cannot continue paying your bill.
  6. You’re $150 minimum payment comes due, and you miss the payment.
  7. The bank charges a late fee to your account (in addition to interest fees of course).
  8. The balance on your card goes up by the amount of the unpaid interest, and the late fee, let’s say $170.
  9. During the next 60 to 90 days, your issuer continues to call, email, mail you and harass you to make the payments to your account. During this time, your card balance continues to increase.

After this, the company will change your account status to Default, and make a negative report to the credit bureaus. Between 90 and 180 days, your bank may start to offer special deals to you to pay off all or part of your balance. They may even offer to reduce your card balance. After 180 days elapse, your bank will probably give up, write off the amount you owe, and sell the debt to an outside collection agency for a small fraction of what you owe. Now, it’s the collection agency that will try to get some money out of you. OK, you can see it’s not a fun experience. You wanted to pay your bill, but you lost your job. What could you do?! Unfortunately, XYZ Bank doesn’t have much interest in your sob story. Slot Game Online

When, If Ever, Is It Safe To Default On A Credit Card?

Well, that depends on your definition of “safe”. You certainly want to avoid default, if you can, but things happen, right? Dave Ramsey has a useful take on prioritizing things. He says that 4 things are at the top: food, clothing, housing, and transportation. You’ve got to have those things to get/keep your job. So, if something must fall by the wayside, it’s got to be your unsecured debts. Slot Game Online.

Prepare For Collectors

There exist many online resources for handling collection agencies. Specific laws exist to protect you from the collection agencies. As with all laws, the important thing is knowing your rights. It will help keep you calm amidst adversity and creditor pressure. Prepare and do your research for the difficult situation you are heading toward. Creditors are aggressive, and you need to know your options in credit card default situations. Slot Game Online.

Effect Of Default On Credit Score

If your credit cards go into default, you can expect your credit score to decrease dramatically. How dramatically? Well, that depends on factors like your initial credit score, and how many cards you default on. FICO has released a few stats explaining the impact on a credit score for various situations. Slot Game Online.

The CARD Act and Universal Default

Good news! 2009’s financial reform laws for the credit card industry actually DID improve somethings. Universal default was where ALL of your creditors could put you into default, if you defaulted on ANY other card, even if you were current on that card, just like dominoes! It used to be brutal! It was an unfair credit practice by the banks, and the CARD Act has prohibited this aggressive credit card banking practice. Slot Game Online.

Recovering From Credit Card Default

OK, so you’ve defaulted. Once you’re through handling the collection agencies, and you’re ready to move on, what do you do to recover? Is it even possible?! Yes, it is, but it will take some time, and patience. Your credit score has been decimated, and you may even have filed bankruptcy. So, it’s often advisable to begin with a secured credit card. Additionally, you may actually find out that, as long as you have a job, creditors are generous with credit again. That’s because, if you’ve filed bankruptcy, they know you can’t file again for another 7 years!
I hope this helps, and good luck to you all…

5 Dangers of Co-Signing a Loan

5 Dangers of Co-Signing a Loan

5 Dangers of Co-Signing a Loan

5 Dangers of Co-Signing a Loan – I received an e mail last week from a lady that was in a desperate situation. She had co-signed a student loan for a relative and had recently been notified. That she must begin making a monthly payment of nearly $800 (since the student had defaulted). This is money she simply doesn’t have. While she thought she was doing a good deed helping a young person to obtain financing to go to college. She is now on the hook for nearly $10,000 per year in debt payments for the foreseeable future. Slot Game Online.

“A person devoid of understanding shakes hands in a pledge and co-signs for a friend.” (Prov. 17:18)
I regularly receive e mails from people wondering about whether or not they should co-sign to help out a loved one or a friend. This can be for a student loan, auto loan, a mortgage, or even a credit card. While I was working in the mortgage business several years ago, it became apparent how little people understood about the financial and legal ramifications of co-signing.

On numerous occasions I had to inform a client that their loan had been turned down due to a loan they had co-signed. In some cases, the loan was not being paid on time and it had destroyed their credit. In other cases, the addition of another monthly obligation caused their debts to represent too high of a percentage of their income for an approval. They all seemed to be in a state of disbelief saying, “but it is not really my debt…” Unfortunately, lenders do not see it that way. Slot Game Online.

1. You May End Up In Bankruptcy

When you co-sign on a loan, you are 100% responsible for repayment along with the primary borrower. If the loan payments are not made, the lender will attempt to collect from you and may ultimately obtain a judgment in court. Once a judgment is obtained against you, they may be able to force you to sell assets such as your home, vehicle, and other personal belongings. As well as attach your wages from your employment. As a result, you may have no other choice but to file for bankruptcy.

2. The Debt May Not Be Dischargeable In Bankruptcy

In the case of a student loan, most of the time you can not discharge this kind of debt in bankruptcy. What’s worse than ending up in bankruptcy? Being insolvent without being able to obtain relief from bankruptcy. A debt that can not be discharged in bankruptcy can potentially follow you for the rest of your life! Even in the case of debts that are considered eligible for discharge in bankruptcy. You must be able to qualify to file a Chapter 7 discharge bankruptcy. Under the new bankruptcy laws, you must meet a series of guidelines for the court to allow you to discharge any debt in bankruptcy. Otherwise, you may end up in a court ordered Chapter 13 bankruptcy (payment plan) for five years or longer.

3. You May Seriously Damage Your Credit Score

Even if the debt is being paid on time, it may still drive your score down. The addition of another loan on your credit file may cause you to have too many open credit accounts to maintain a high credit score. Of course, if even one payment is made late this will cause even further damage to your overall score. Slot Game Online.

4. Your Debt Ratio Will Be Impacted

When you apply for a loan. Lender will take into account the percentage that your monthly debts represent of your monthly income. Income to debt ratios are used in just about all forms of lending. They are considered as important as your credit score by mortgage companies, auto finance companies, and even credit card issuers. Slot Game Online.

5. Your Interest Rates May Increase

We have been inundated with e mails from individuals seeing substantial increases in the rate they are being charged on their credit cards. For just about any reason, credit card companies seem to be quick to raise rates on even their best customers these days. If a loan you co-signed for has even one late payment. You may see substantial increases in the rate you pay on any variable rate debts you owe.

Property News

Durbin and Debit Savings

Durbin and Debit Savings

Durbin and Debit Savings

Durbin and Debit Savings – As you may recall, from an earlier article written on this subject. Durbin capped the amount that “regulated” banks could charge for their issued debit cards. Now, here’s where it tends to get a little tricky… who and what are “regulated” banks? Well, the guideline is, I believe, $10 billion is assets. Banks that don’t meet the asset criteria are “exempt” from the caps, therefore protection of one of their revenue streams. Do you have a debit card? Do you know the asset size of your issuing bank? Not that it matters to you as a card holder but, to a merchant, it could make a big difference in fees. Game Slot Online.

Now the articles I write are primarily meant for the beneficial education of merchants. So, with that in mind, let’s take a look at some examples of fees. Typically, if a customer is spending money with you they will likely only use their debit card for smaller (and “smaller” means different things to different people) transactions. So, for sake of this discussion, let’s say the transaction size is $100 and the customer hands over their debit card. Let’s compare some cost-to-the-merchant examples:

Tiered Pricing

Let’s assume that you are on a Tiered Pricing structure and are getting charged $1.23% + $.10 for swiped debit cards. Your fees on the $100 transaction would be $1.33 and under this form of pricing, you’re not getting the benefit of pinned or Durbin pricing. So, in effect, under this form of pricing, your processor is keeping all that extra profit for themselves. Game Slot Online.

Interchange Plus Pricing

If you’ve read any of my articles in the past. You know that I’m a strong proponent of total transparency in pricing which is what Interchange Plus Pricing offers. Let’s say that you’re fortunate enough to be priced at Cost Plus .25% + $.10 and utilizing those numbers, let’s look at some numbers. So, a customer hands you their debit card (and certainly, remember here you don’t know if it is issued by a “regulated” or “exempt” bank). First let’s look at your cost if it’s an exempt card.

Taking the.80% + $.15 PLUS your .25% + $.10, you are at 1.05% + $.25 or a total of $1.30 in fees on the $100 transaction. No great savings here when compared to the Tiered Pricing description shown above but, now, what if it’s a “regulated” card. Then, under this Cost Plus pricing, the cap is .05% + $.21 and then you tack on your PLUS of .25% + $.10 and you have a rate of .30% + $.31 resulting in total fees of $.61… now we’re talking.

Pinned Debit Comparisons

Now, let’s say that you are hooked up to accept pinned debit transactions either through an external/internal pinpad. Now, typically, your processor will be charging you a Monthly fee of maybe $5.00 to accept pinned debit transactions. Also a per transaction fee of maybe $.15. So, when a customer hands you their card. You have them enter their pin number and now your costs are as follows:

Your fees on the $100 transaction would be $1.10. On the other hand. The regulated rate is .05% + $.21 + $.15 (for the processor). So the total fees on this $100 transaction would be $.41. Of course, this would represent a significant savings for you.

Now with all this said, and with all these numbers swirling around in your head. What is most beneficial to you as a merchant? In my opinion, when you look at the numbers, it really doesn’t matter if you are on a Tiered or Interchange Plus pricing model. Since you’ll never know at the point of sale if the card is issued from a regulated or exempt bank. The resulting savings that go along with it. Hopefully, this has helped to de-mystify some of the confusion I’ve been hearing about regarding this Durbin Amendment. Thanks for reading. Game Slot Online.

5 Ways You Can Become a Victim

 

5 Ways You Can Become a Victim

5 Ways You Can Become a Victim

5 Ways You Can Become a Victim – A while there are measures you can take to safeguard your identity. Including Pre-Paid Legal’s Identity Theft Shield. No one is immune. The difference for those who employ the services Pre-Paid Legal offers is that when you become a victim. You have the power of legal counsel and the experience of licensed investigators working on your behalf. You have the power to fight back. 5 Ways You Can Become a Victim.

1.) Drivers License Identity

In America, our driver’s licenses, issued by each state’s Department of Motor Vehicles or Department of Transportation, have become our national identification card. Multiplying the potential for theft. If your driver’s license is stolen. Used by someone who receives a DUI or DWI and then fails to appear in court you may be arrested.
A Pre-Paid Legal membership with the Legal Shield add-on gives you access to an attorney 24-hours a day via a toll-free phone call.

2.) Medical Identity

When someone uses your name, Social Security Number, birth date or your insurance card to obtain medical services, they’ve attacked your medical identity. Whether they assume your identity for the purpose of getting tests, or to receive treatment, not only will your name be on the bill, but the results may become part of your medical history.
Setting the Medical Information Bureau straight – and restoring your medical identity – in most cases requires an attorney. With a Pre-Paid Legal membership, you’ll have qualified legal counsel at your fingertips.

3.) Social Security Number Identity

When your Social Security Number is used by an identity thief to file with the Internal Revenue Services (IRS), you are stuck in the middle with the tax bill, and a serious need for an attorney. If an undocumented worker uses your Social Security Number to get a job, the income reported to the IRS from the W-2 will raise a red flag as unreported income on your tax return. With a Pre-Paid Legal membership you have access to legal counsel and to IRS audit legal services if needed. 5 Ways You Can Become a Victim.

4.) Character Identity

It may seem like something out of a movie. But when someone assumes your identity and commits a crime in your name, the drama is real. You will obviously want to speak to an attorney. In a situation like this, it’s not likely that your credit card company will be of any assistance. Quick detection is essential in the fight against identity theft. The Identity Theft Shield alerts you when there has been a change on your Experian credit file. Which could be a change of address or change to your public records, including felonies.

5.) Financial/Credit Identity Theft

This form of fraud is the one most commonly recognized as identity theft: stealing your identity for financial gain. If you do not deny the debt within 60 days. It is common for victims to be unaware of a theft situation until months after the crime has occurred.

In situations like these and many others the early detection and restoration services that come with the Identity Theft Shield and the legal services of a Pre-Paid Legal membership. Provide an added layer of protection. The hours involved in dealing with identity theft add up. It’s reported that it takes 600 hours to deal with true identity theft, do you understand now how the Pre-Paid Legal membership combined with the Identity Theft Shield can be an invaluable service to you and your family. Pre-Paid Legal is the only company that offers a suite of products that fights identity theft before during and after the crime.

3 Things You Have Got To Know Before Getting Your First Credit Card

3 Things You Have Got To Know Before Getting Your First Credit Card

3 Things You Have Got To Know Before Getting Your First Credit Card

3 Things You Have Got To Know Before Getting Your First Credit Card – Understanding the fundamentals on how to get a credit card and use it wisely can save you time, energy and money, and help your way to building good credit.

Getting your first credit card is not only an enormous milestone, but also a huge adjustment. You may have a rough sense of how credit cards work and how to handle it, but the details are where the devil is. Comprehending more before getting a credit card will save your money and help you establish good credit. Finance Solutions

1. The best credit cards are not for beginners

As a beginner to credit, perhaps you will not be able to qualify for the most valuable credit cards, which are those with wealthy rewards and benefits, bonuses or long zero percent interest periods. Those products are accessible only to applicants with good or excellent credit and longer credit histories who meet certain joker123 income requirements.
You might start smaller first with your credit card, a product for people with limited or no credit history. It is not that bad, though; lots cards like that provide decent rewards and do not charge annual fees.

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2. A security deposit makes a mastercard easier to obtain

If you’re having hassle to get your first credit card approved, try a secured credit card.
Secured credit cards are made for people with damaged credit or no credit at all. You will first need to put down a cash deposit to open your account. Your credit limit is particularly equal to your deposit. The minimum deposit requirements vary from $200 to $500, depending on the agen sbobet card.

Read More : Credit Report Agencies’ Role in Improving Your Credit Rating

Falling behind on payments might mean losing your deposit. However, if you always pay on-time and spend your money below the limit, you could build good sbobet88 credit within months. Your issuer could upgrade the account to a regular unsecured card at that point, or you could apply for an unsecured card and close the secured card in good standing. Insurance News

3. Your first credit card can build your credit or ruin it

One of the primary reasons to obtain your first credit card is to spice up your slot game credit. However, if you are reckless, it can have the opposite effect. It all depends on what you do.
Your issuer will report your credit card activity every month to credit bureaus, the companies which files the credit reports that form the basis of your game slot credit scores. The reported data includes whether your payments have been on time and how much of your credit you have used. Late payments and maxing out the card are bad.

To ensure your credit card activity helps as much as possible, pay in full and punctually every month and stay below your credit limit. (A good rule of thumb: Keep your balance under 30% of your available credit at all times.) You might also want to track your credit scores to see where you stand. Finance News

Credit Report Agencies

Credit Report Agencies’ Role in Improving Your Credit Rating

Credit Report Agencies

Credit Report Agencies – Look in the business columns of any large-city newspaper under the heading “Businesses for Sale”. Look in the real estate columns of your local paper under the heading “Apartment Houses for Sale,” or “Business Property for Sale.”
If you look carefully, you will probably soon find a number of ads which say, after the description of the property which is for sale, the following: “Owner will finance”. Or the ad might say: “Seller will finance”; or “Financing available”.

What these ads mean is that the seller or owner of the property-be it a business, apartment house, shopping center, etc. Is willing to finance your purchase of the property. So you do NOT have to go to a bank, a finance company, a factor, a relative or a friend to borrow the money you need. Rather, you have a cozy sale between yourself and the seller.

While it is true that the seller will probably register the debt you have after you buy the property. You do not have to face any long-faced loan officer at a lender to get your money.
Of course, you never really get the money when the seller finances the sale. Instead, you take over an income producing property of some kind and have the right to earn the income from the property. The seller does not get any of the income. You will, of course, have to pay the seller each month a certain amount on the loan you obtained from the seller. But this money will come from the income the business generates, not from your own pocket or bank. Credit Report Agencies.

Questions:

What kind of a seller or owner would be willing to finance the sale of a valuable income property?
There are many different types of sellers who are anxious to get out of an income-producing property for one reason or another, such as other business interests, divorce or separation, death or illness in a family, or retirement.

Once you spot any reasons such as these. You can be fairly certain that you have a good chance of having the seller finance the sale to you. But you must be alert for such opportunities.
How can I convince the seller or owner that I’m the right person to take over the income property?
To convince the seller or owner that you are the “right person”, you must “sell yourself” to the seller. You must convince the seller that you are hard-working, dedicated to the business, interested in the business, reliable, and honest.

Once you convince the seller of these, your chances are excellent. So keep this in mind when talking to the seller.
The usual way a deal which is financed by the seller works is that you take over the business for no money down and repay the seller on a monthly basis. To accomplish this, you should:
Pay the “asking price”Avoid haggling with the seller.

Be willing to agree to all the terms the seller sets up

By having the seller finance the sale. You will probably pay more for the property and a higher rate of interest. But if you are just starting, this may be your great chance. I see all types of real estate financed this way, many different commercial businesses, factories, etc. So don’t think that you are restricted as to the type of business you might buy when the seller finances it.
To get 100+% financing. Ask the seller to lend you a few thousand dollars for operating capital by allowing you to keep the first few week’s income from the business. Without making a payment to the seller. Or, if you’d prefer to have just 100% financing, do NOT ask for this provision.

You will need an attorney to protect you in such a sale. Instead of paying the attorney ask that the fee the attorney would normally collect be paid in the form of a promissory note. You will then pay the attorney a few months after you take over the business for no cash down!
For much more information and assistance with locating and purchasing owner-financed properties, visit our site at. Where there are articles, reports and complete business courses that will help you to success in your owner-financed investment activities.

Free Virtual Credit Card

Free Virtual Credit Card

Free Virtual Credit Card – Virtual credit cards are debit cards but they can also function as credit cards. This means that with virtual credit cards you have an account in which you deposit money and you can use that money as if it were credit. Unlike traditional cards, with a virtual credit card you do not acquire any debt, since you spend what you deposit to the card. The benefits they offer are extensive and there are many banking institutions or companies that issue them. In this article we explain more about it. sbobet88

  • Revolut and N26 have a European IBAN for free with prepaid MasterCard and or virtual Visa. It can be requested by residents of Spain and other countries in the European Economic Area.
  • A good option is Neteller. Here everyone can apply for a free virtual credit card.
  • Other options include the free Transfer wise program that is available in more countries.

Free Virtual Credit Card

Perhaps it is good to clarify from the beginning that acquiring a free credit card does not mean that you will have a credit that you will not have to pay. The credit cards that we refer to in this article are prepaid cards that serve the same function as credit cards. Think of them like when you credit your mobile. It is the same, but with a virtual card. If you want to get free money check the link. agen sbobet

Virtual Creditcard is Usefull

A free virtual credit card is useful for those who do not have access to financial services such as conventional credit cards. This type of card is used by people who need to carry out transactions on the Internet, either to buy or contract services. Similarly, virtual credit cards give you the option to transfer money between countries without having to pay such high commissions. This is very profitable for all those people who live abroad and who have to constantly send money to their family or friends (it is an excellent alternative to Western Union).

An advantage of free virtual credit cards is that they also provide you with a bank account. In case of processing a virtual credit card in the European Union, that account includes an IBAN that allows you to transfer money between European countries for free. In the case of non-European cards, the account they offer you can use to deposit your payroll or make deposits in general. Most free credit cards also offer you a physical card. This allows you to make purchases in an offline store.

How to get free virtual credit card

There are several companies and banks with which you can apply for a free virtual credit card. You can buy these cards in different parts of the world. In the case of Spanish-speaking countries, you can acquire them in Spain, Mexico, Argentina, Chile, Colombia, Venezuela, among others. Basically it could be said that if there is a Visa or MasterCard in your country, it is very likely that you can acquire a virtual prepaid credit card.

Free virtual Visa card

If you are wondering how to get a free virtual Visa card, it is very simple. In most countries, the Visa company, like MasterCard, has a large presence. In Europe perhaps a little less, but it is not conspicuous by its absence. Most credit cards belong to one of these two financial transactions. Some companies even offer a prepaid MasterCard or Visa à la carte credit card. Choosing between one or the other game slot will depend on why you want it, but basically they are the same. The following is an example of a free virtual credit card. The company has grown very rapidly and is gradually expanding throughout all parts of the western and westernized world.

Revolut

Revolut offers a European account with free IBAN, prepaid MasterCard and / or Visa credit card, the option to generate single-use cards, and the option to buy cryptocurrencies such as Bitcoins, Bitcoin Cash, Ethereum, Litecoin and Ripple (premium account) . It can be requested by residents of Spain and other countries in the European Economic Area. Although Revolut is not yet available to Latin Americans, the company is in the process of expanding out of Europe, including Latin American countries such as Mexico and Argentina.

With Revolut you also have the option of having a physical card sent to you. The cost of it will depend on where you are. In some countries you can request it completely free. The physical card is also free if you have the premium slot game account, which costs around € 7 a month. Finally, it offers travel insurance that is attractive to travelers.

How to get a free virtual credit card with Revolut

To get a free virtual credit card with Revolut or any other company, what you need to do is enter the page and follow the steps indicated. You will have to verify your identity and have a cell phone. With some companies you will have to do an interview by phone or webcam, but this is not the case with Revolut. In general, the time it takes to get a free virtual credit card is 20 minutes, not counting approval time. This time is also usually very fast. A good alternative to Revolut is N26 or Neteller.

A Success Plan for Your Personal Relationship With Money

A Success Plan for Your Personal Relationship With Money

A Success Plan for Your Personal Relationship With Money

A Success Plan for Your Personal Relationship With Money – “There are two ways of being happy: We may either diminish our wants or augment our means – either will do – the result is the same; and it is for each man to decide for himself, and do that which happens to be the easier. But if you are wise, you will do both at the same time, young or old, rich or poor, sick or well; and if you are very wise you will do both in such a way as to augment the general happiness of society.” ~ Benjamin Franklin

Basically, this quote is saying that you can be happy without spending your money on stuff that you don’t need. Instead, you should pursue meaning and purpose in your life. The whole world will also be a better off if you do. What could be simpler? What could be better?

Defining Your Relationship with Money

In order to transform your relationship with money, you must ask yourself some very tough questions. More importantly, you must be willing to provide honest answers. Are you Managing your Relationship with Money, or are you Waiting for a Miracle?

Essentially, there are (4) Money Relationship Styles:

  1. The Player –
    You’re a Player. Basically, you spend every penny you can on having a ball. I think the young people call this “Ballin'”.
  2. The Friend –
    You find yourself forever in the “Friend Zone”. You’re nice to your money. You pay your bills. You may even have a little left over at the end of the month. Nevertheless, you’re unsatisfied. You yearn for more from your relationship with money.
  3. The Companion –
    You’re Good to your Money. You save when you can. Maybe you even invest a little. You’re still not totally “Committed” to “Managing” your Relationship with Money.
  4. The Partner –
    You are committed to managing your money. You’re creating assets and multiple streams of income. At the same time, you’re shedding liabilities and ending your servitude to debt.

Your Money Relationship History

What is Your Money Relationship Track Record? Think about how you’ve earned and spent your money in the past. People earn and spend money in different ways.
These are the (3) different ways that you can earn money:

  1. Earned Income
  2. Portfolio Income
  3. Passive Income

These are essentially (4) different ways that you can use money:

  1. Spend it
  2. Save it
  3. Invest it
  4. Manage it

You’re Managing your Money when you’re Spending Less; Saving More; Investing Smart and Creating Multiple Streams of Income.

Your Money Relationship Priorities

What Are Your Future Intentions With Your Money? You’ve had some time now to think about how you’ve earned and spent your money in the past. Are you now committed to transforming your relationship with money in the future? If so, the first thing that you need to do is to set priorities.

Your priorities aren’t always written down or formally regarded as such. Most often you exhibit your priorities by your actions. Having Negative Priorities means putting things that may make life easier ahead of things that make life more fulfilling. Having Positive Priorities means putting things that that make life more fulfilling before things that just make life easier. Before you can create and stick to a financial budget – which is very important, you need to create a “Priorities Budget” to determine what is most important to you.

So what are the 5 Steps to Transforming Your Relationship with Money????

  1. Taking Initiative – Proceed and Be Bold!
    As Dr. Martin Luther King, Jr. once said that “Faith is taking the first step even when you don’t see the whole staircase.”
  2. Ending Materialism – Transform Your Relationship with Things
    What things are keeping you tied to the world and further away from living the life that you want to live????
  3. Financial Integrity – To Tell the Truth
    We have to stop lying to ourselves about our relationship with money.
  4. Relieving Debt – Transform Your Relationship with Credit
    W.E.B DuBois once said that “To whom you give your money, you give your power.”
  5. Start Budgeting – Understanding Assets vs. Liabilities

If you don’t have a budget to keep track of what’s coming in and what’s going out, you’ll never have a clear picture of what you need to do, to go where you want to go. Your budget is your compass to finding the way to your financial destination. In order to achieve your financial goals, you need to have an organized strategy for transforming your ambitions into a series of purposeful actions. Your Budget is the first tool you need to create a strategy for transforming your relationship with money.

Is it Practical to Plan For Retirement?

Is it Practical to Plan For Retirement?

Is it Practical to Plan For Retirement?

Is it Practical to Plan For Retirement? – As it becomes increasingly difficult for many companies to finance workplace pension plans, and more persons join the ranks of the self-employed, the number of Jamaicans who are currently investing towards their retirement years is woefully inadequate.

Studies indicate that private pension arrangements are now covering some 60,000 persons of the approximately 1.3 million people in the labour workforce in Jamaica. This means that only about one out of every 22 persons contributes to a savings plan. That will help to replace their income when they can no longer earn a living or choose to stop working. This is a startling statistic, as it indicates that many persons may not have considered the necessity of planning to create an income for their later years.

Calculating The Cost of Retiring

Imagine that you are now 65 years old, and desperately desire to quit the rat race of the working world. In your youth, you had only focused on funding your immediate needs, and had never consciously thought about where money would come from when you were too tired to keep working.
You had hoped that your children would take care of you when the time came, but now they are struggling to make their own ends meet, and can offer you very little assistance. You have no choice but to continue working, despite your aches and pains and nature’s actions in trying to slow you down.

So let’s look at what it would take to create a nest egg. Which would allow you to live comfortably in your retirement years.
Let’s say that you are now 40 years old and wish to stop working at age 60. Assuming an average inflation rate of ten per cent per annum. Which is the percentage by which prices will go up every year. Your income need upon retirement would actually be over $330,000JMD per month. Would continue to increase every year in line with inflation.

How much money would you need to amass in the next 20 years

In order to generate this income stream over 25 years of retirement? To make this plan work, you would need to create a lump sum of over JMD$126 million upon retirement. Which should earn a net return of eight per cent every year. Is it Practical to Plan For Retirement?

So, how much would you need to put aside every month to achieve this goal? If your investment plan gives you an average net return of 10 per cent every year. You would need to save just under $80,000JMD per month and increase your annual contributions by ten per cent to stay ahead of inflation. Now for most people, the possibility of putting aside $80,000JMD per month towards a retirement plan would be next to nil. I tell them it’s better to save what you can than save nothing at all.

Getting Started With A Retirement Plan

Here are some considerations that can help you to get started with a plan for your future needs:
– Do you have any savings that could be used to start a dedicated retirement plan?
– How much money can you comfortably put aside every month without having to withdraw from it?
– At what age is it practical for you to stop working for an income?
– How much money will you need to withdraw monthly once you are retired?
– Will you receive a workplace pension that will contribute to meeting your needs?

Using the previous example

Let’s say that all you can save right now for your retirement is $10,000 JMD per month. You decide that it’s more realistic for you to aim for retiring at age 65. What kind of nest egg could you create with these parameters? If you increase your contributions every year by ten per cent. Then you would create a retirement fund valued at over JMD$32 million.
While this figure may sound impressive, in today’s dollars it would only be worth about JMD$3 million. Would generate the equivalent income of about $11,000 JMD for 20 years. Your retirement nest egg would there fore form only a part of your plan towards replacing your income in your senior years. Other options to generate money could include renting out a part of your home, or starting a business that would help to pay residual income. Is it Practical to Plan For Retirement?

Business Rewards Cards

Business Rewards Cards

Business Rewards Cards

Business Rewards Cards – Business credit cards can be a great tool for any business. Large or small to assist in the money management process. Some of the first things that most consumers take into consideration when deciding between credit card accounts is APR, credit limit, annual fees, late charges, and other miscellaneous fees. There is nothing wrong with this, as these are all critically important factors when trying to decide which card program is the best one for you. However, once you have narrowed your search down a bit, be sure to take a good look at some of the rewards programs that these cards usually offer. You must always try to find the rewards program that you feel you will reap the most benefit off of. Here are some of the kinds of rewards programs that different accounts will offer.

Cash Back Rewards

One of the most basic rewards programs can also be one of the most lucrative for consumers. Cash back business cards will all generally work the same. For every purchase charged to your card you will earn a certain percentage of each transaction towards your cash back balance. The percentage will obviously vary with each account. Also by your business or personal credit history, although it is typically somewhere between 1-4%.

When you elect to redeem your balance you can elect to have the money credited back to your monthly statement. Request a paper check be sent or an electronic deposit be made. If you have a business with multiple card users and/or accounts then this amount can really add up quickly and save your business a good chunk of money.
Keep in mind that each credit card company is different, thus making the rewards programs for each different as well. Some programs will offer a different percentages of earnings depending on what you are spending.

Airline Rewards

Airline rewards cards are some of the most popular among larger businesses. For those that require their employees to be frequent travelers. These cards basically accumulate “points” for each dollar you spend on your account. You can then redeem these points for airline purchases. These accounts tend to vary a lot depending on your card provider. Some will only allow you to choose a specific airline for your flight and may also have certain black-out dates restricting you on your travel options. As with the cash back cards, these cards can have limits in regards to point accumulation. Also some card providers will charge a fee each time a flight is booked.

Road Rewards

Some of the most popular cards these cards are ones with a gas rewards program. The ever rising fuel prices have left a large hole in the pockets of many small businesses. These cards offer you a certain percentage back every time you make a stop at the pump. If you have a handful of drivers on the road then it is almost silly for you as a business owner to not at least look into what a gas card can do for your company.

Hotel rewards

The points accumulated on these accounts can go towards free nights, as well as upgrades. If you are staying at a high end hotel, and you have enough points accumulated. Then you may be able to mosey on up to a suite or a penthouse room.

Product and Service Discounts

A lot of card issuers have partnered up with different product and service providers to help bring you that will pertain directly to your business. An example can be rewards points that are redeemed at an office supply retailer such as OfficeMax or a UPS store. Shipping expenses can really rack up for a lot of businesses. There are numerous rewards programs that will help save you money in that area. The possibilities here are nearly endless with rewards programs, so always be sure to go through each account accordingly and select the one that will benefit you and your business the most.