Experienced adults recognize the importance of knowing and monitoring their credit score, but to the younger generations, a credit score is a number with little relevance to their lives. This misconception, that credit scores are unimportant, is a potential growing problem in the United States, especially for the young men and women who will be graduating college with debt and no credit. In order to avoid an alarming wake-up call, high school students should be advised on how to build, monitor, and maintain their credit score. Good habits begin at an early age.
HOW TO ESTABLISH CREDIT
If you are just starting out, fresh from high school or college, building credit can seem like daunting task. Credit card applications are available seemingly everywhere, but either you will not qualify for the card or the interest rate will be so high, you will never be able to keep up with even the minimum payments. So, how do you proceed?
Lenders look at multiple facets when determining whether or not you are a safe risk. Your bank account balance, any utilities in your name, and your employment history (as well as income) are all taken into account. So, open a bank account and maintain a steady balance. From there, you could consider opening a line of credit at a department store, as their lines of credit are easier to be qualified for. Make a purchase at least once per month and immediately pay off part or most of the balance. If you’re hesitant about opening a line of credit, remember that you don’t have to use it to make extravagant purchases. Use your credit card for the small purchases you could pay for in cash, and at the end of the month, use that cash to maintain your credit card balance. If you are adamant against opening a credit card, you can always consider your student loans. Each payment you make on them takes you one step closer to a better credit score.
HOW TO MAINTAIN YOUR CREDIT SCORE
Once you have begun establishing credit, maintaining your credit score becomes of the utmost importance. Be sure to make all of your payments on time. Even if the penalty for making a late payment seems reasonable – it WILL affect your score adversely. Avoid this mistake at all costs. As your credit limits increase, remember not to spend more than you have. Moderation is key.
HOW TO MONITOR YOUR CREDIT SCORE
There are many websites available on the internet that provide you with a free credit score report. They will either consult with one, two, or all three credit bureaus (Equifax, Experian and TransUnion). Generally, these sites will offer a credit report free of charge once every six months. Before consulting these sites, however, be sure to remember that a report that consults with all three bureaus is more reliable, and when in doubt, do not provide your credit card – if the site say it’s free, it shouldn’t require a card.
Credit cards can provide a gateway to happiness, or so it would seem. With rent stacking up before our paychecks come through and awesome deals at every window, the power to purchase instantly is in high demand. After all, when we need things right away, what could be better? We live in a culture where we need it and we need it yesterday. Not only is sliding a card much easier than handing over a wad of cash, it requires much less thought. But as with anything, there must be some sort of catch, right?
As easy as it is to charge enough groceries to last the month or a down payment on a new laptop, in the end you still end up with that nasty little thing called a bill. As the bill starts to add up and the paychecks aren’t getting any larger, credit cards can quickly become the enemy. That little piece of plastic that was once the gateway to American freedom has suddenly become a slavedriver and you find yourself behind the iron bars of debt.
Looking at it this way, it would seem that there’s no other way but to chop up all your credit cards and move to cash only. However, there must be some way to still enjoy the plastic gateway. As unattractive as it may sound at first, a budget can be that balance. Say you need to put out a hundred dollars before your paycheck comes in because of an emergency. Instead of pushing yourself back into the hands of collectors in a couple months, take that money out of next month’s budget and only spend as much as you can pay back. A simple budget can turn the deadly sting of credit card debt into that extra push you needed to get through the end of the month.
So there you have it. Credit cards can be a wonderful and thrilling thing, as long as you use them responsibility. You wouldn’t start out on a road trip in the middle of a desert without a full tank of gas, would you? Then don’t spend more than you can pay back! It’s a simple principle that can allow you to enjoy the joys of credit cards, and you can avoid the annoyance of collectors as well as the weight of debt. As long as you keep an eye on your financial gas tank, making your way through the desert should become as easy as cruising down the highway.
There are many reasons why people get into debt. In some cases, they can’t get out of it on their own. They may need help by an outside entity to ensure that they will be able to survive financially.
How Do Debt Consolidation Companies Work?
Debt consolidation companies will assist people in getting their bills into better order. In many cases, they can combine a number of bills into one lump sum of money per month. They can work out lowering the interest rates with creditors, and they can help to make sure that the borrower is able to pay the combined bill according to their income.
Finding Someone To Help With Debt Consolidation
In order to find someone that is good at debt consolidation, many people ask others whom they have used. This way they are getting a good recommendation from someone else that has already gone through the process of using a service like this. They will also be able to find them by looking in the Yellow Pages. Other people perform a search online, and find several companies that they can compare. They look at the different ways that they operate, and they are able to choose one that will work for them.
A Good Consolidation Firm
A good consolidation firm will work on behalf of their client. They will gather the information about their bills, and they will talk to the creditors about lowering the interest rates. They will also get the client into a much better arrangement of paying off their bills so that they can also pay their living expenses while they are doing so.
What A Person Needs To Do After They Get A Consolidation Firm Involved
They should make sure that they talk to them on a regular basis. A person that is going through the consolidation needs to make an effort to pay off the debt that they incurred. They will need to follow the monthly plan that was set up for them.
Staying Out Of Credit Trouble Is Important
Once someone clears up their financial situation by using a consolidation firm, they need to be careful that they don’t get into the same situation again. They should take some credit counseling classes in order to learn how to handle their money better. This will help them immensely in the long run. They will not get into financial trouble in the future if they know what they can spend on a regular basis and stay out of the credit trap. If they go back into taking credit, they will have problems again in the future.
Finding the help that they need is very important for people that are in debt. They might be able to get assistance and get back on track. It can make all the difference for them if they are able to pay their bills, especially if they have a family to support. Debt consolidation can help these people in many different ways so that they are able to sustain themselves once again.
OptionBit is one of the premier companies that trade in binary options, also known as digital, all-or-nothing or fixed return options (the last term is used on the American stock exchange). These options are the kind where the investor can only get an amount of some asset or no part thereof at all. Both the asset and the amount are agreed upon beforehand. What makes OptionBit unique is its ease of use and its trading tools, which traders can use to close their options before they expire and even extend the expiration time after they have made their purchases. In this Optionbit review, I’ll cover everything you need to know.
Digital, Touch and Range options
These three types of binary options are not offered together anywhere but at OptionBit. Digital is the most popular. The person trading this way in commodities has close and extend options from the second after the trade has begun until two minutes before the expiration date.
Touch/no touch options are available as an extension to the one-touch options that are also offered at OptionBit. The option expires “in the money,” that is, it makes profits as soon as its value touches a predetermined barrier. If on the other hand the option does not reach that value before it expires, than it is “out of the money.” The trader then loses any premium that he or she had invested therein.
Range options are the most complex of the three. The trader is given upper and lower rates in addition to the market rate for which the asset in which he is investing is being traded at present. These options are traded primarily when sharp movements are displayed by the market.
Assets in which OptionBit trades
Investors at OptionBit can trade in many types of assets, which fall into four groups:
foreign currencies: In addition to those most familiar to those who trade on the forex market (the American and Australian dollars, the British pound, the euro and the yen), OptionBit offers the Canadian and New Zealand dollars, the Norwegian and Swedish krones, the Russian ruble and the Swiss franc.
stocks: These include the stocks of such prominent companies as Boeing, Amazon, Coca Cola, Disney, Apple, General Electric, McDonald’s, Microsoft, Nike, Sony and Toyota.
indices: includes the futures of Nasdaq, Nikkei, Standards & Poor and Topix.
commodities: The four commodities are gold, silver, copper and crude oil. OptionBit measures their worth by the price of a pound of copper, a barrel of oil or an ounce of silver or gold “as they appear at the first continuous future contract at COMEX.”
Getting an account
If you own a home, you probably signed a long term mortgage that will take you many years to pay off. Most mortgages are set to 30 years; which means you will be paying for, not only your home, but thousands in interest. Most people would like to pay off their mortgage early. They would love to own their home, free and clear, as well as reduce the interest owed. The more you know, the better the chances are that you will want to, and will make an effort to pay your mortgage off before your 30 year deadline.
Most people simply pay their designated mortgage payment and nothing more. The ideal thing to do, is to pay above your minimum mortgage payment to help bring the principal down faster. It’s always a good idea to speak to your mortgage company first, to find out how they’d prefer you to do this – a separate payment, or added in with your monthly mortgage payment. Usually a separate payment with a separate check, is preferred. Your mortgage company may not be sure what to do with the extra payment, so be sure they know to apply it to the principal balance, and not set aside for the following month’s payment. Be sure you understand if your mortgage company has any penalties for early pay-offs, as well.
If you cannot afford to make big, extra payments, paying even a little extra will help to get the interest amount down so more of your future payments will be applied directly to the principal. If nothing else, round your payment up each month; for instance, if your payment is $744.00, pay $750.00.
Pay chunks of money:
Some people like to use things like their tax return, toward their mortgage. If you get extra bits of money; such as, a nice little work bonus, or maybe you have a side job with extra income coming in. You may want to consider making it a habit to use any substantial bits of extra money you get, toward your mortgage. You can send in sizeable extra bits of money or work payments, towards your mortgage.
The sooner you get started on making larger, and/or extra payments, the sooner it becomes a habit to getting your mortgage lower, quicker. With habit and dedication, before you know it, you can own your home free and clear
A common plague afflicting many people is overwhelming debt. For a variety of reasons some people all of a sudden are in the midst of a financial crisis; overextending and living beyond their means, a personal or family illness or the loss of a job. The debt can become overwhelming and the ability to repay it insurmountable.
The impact of creditors incessantly calling threatening one’s home, car or whatever else is important to them can wreak havoc on a person. It can cause them to not think rationally about how to constructively deal with their debt. Many times people make unsound decisions due to the stress related to their debt issues.
Dealing with one’s debt does not have to be a traumatic experience. The situation does not have to go from bad to worse. There are options available to debt ridden individuals that will ease the stress related to the burden of paying off what can seem like insurmountable debt.
In many cases individuals opt for bankruptcy, either a Chapter 7 or a Chapter 13. Others do not want to endure the stigma of going through what can be a very public bankruptcy experience and look at solutions offered by a debt settlement company.
Debt settlement companies are not regulated however, and many unscrupulous companies prey on vulnerable people dealing with a financial crisis related to debt. There are numerous viable companies that do a great job at negotiating with creditors on behalf of their clients. Once you have done some research and found one that is legitimate there are benefits to having a debt settlement company work on your behalf.
Debt Settlement Companies Deal Directly With Creditors
Dealing with a creditor can be a harrowing experience, as they are trained to be mean and threatening. They know you are vulnerable and count on an irrational reaction to their phone calls. Once you have retained a debt settlement company it starts to deal with your creditors and shields you from their wrath.
Debt Settlement Companies Can Help Develop an Affordable Repayment Plan
Often times when someone is enduring the impact of a financial crisis they are not able to calmly sit and develop a budget or repayment plan. A debt settlement company can assist debt burdened individuals with doing so.
Debt Settlement Companies Pay Your Bills
Once a suitable payment plan is developed the debt settlement company will pay your bills to your creditors based on the negotiated payment plan developed.
Debt Settlement Companies Can Offer Other Services
As part of their overall commitment to helping someone get out of debt many companies offer budgeting and financial counseling services. They can help with developing more long term goals for becoming financially solvent that a person enduring a financial crisis might not see.
Debt settlement companies can be a great idea. Find one that is reputable and understands the mechanics of dealing with creditors. You will sleep a lot easier at night knowing someone else is helping you through your financial trauma.
The psychology of Forex trading can greatly affect a trader’s performance. While having a good trading strategy is an important part of successful Forex trading, overcoming the emotional aspects that come into play is critical to becoming a profitable trader. One of the first steps in mastering one’s emotions is to set realistic expectations. Too many Forex traders come into the market thinking they will get rich over night. It takes time to develop skills and strategies that produce profitable trades. Another common mistake is trading with money one cannot afford to lose. This creates a feeling in the trader that making money is a necessity. Trading while under pressure can result in poor judgment and losses. Emotional trading is the major reason Forex traders lose money.
Greed is the number one emotion that leads to losses. When there’s a reasonable profit taking opportunity, its best to get in and get out. Being greedy often causes traders to remain in a trade past the point when they should have exited, in hopes of larger profits. A quick reversal can rapidly deplete the Forex trader’s account. Unless there are substantiated reasons for holding a position based on the implemented trading strategy, its wise to exit the trade and live to trade another day. Plan your trade and trade your plan. Greed can also lead Forex traders to risk too much on a trade. Trades should be kept within reasonable sums to avoid losing most or all of it on one bad trade.
Fear is especially common for new traders. When a trader has yet to become familiar with an effective trading strategy, they may find themselves unsure of where they should enter the trade. Forex traders who have experienced a long series of losses may also become fearful. Traders should never trade with non-expendable income. Any money that is risked on a trade should be non-essential to maintaining the trader’s standard of living. This will help reduce the fear of losing it. Fear can prevent a trader from taking advantage of good trading opportunities.
Developing a Successful Trading Mindset
Successful Forex traders develop a trading plan and hold to it. They record their trades in a trading journal and review their performance to determine what works and what doesn’t. Successful Forex traders define clear trading rules and discipline themselves to follow them. They set goals with realistic expectations. Forex trading can be very stressful. Eating properly, exercising regularly and getting the proper amount of sleep can help maintain a positive mental attitude. A good trader knows when its time to take a break from trading. Trading when over tired, sick or worried can lead to losses. A successful Forex trader continues educating themselves. They are continuously learning new strategies, new technologies and new events that influence the markets. Profitable traders treat Forex trading as a business. They develop proper risk management tactics. When Forex traders have a clear trading strategy and an organized plan that they consistently follow, it will help them develop the confidence and gain control over their emotions.
The experts say you should always have an exit strategy before you buy a stock; this is excellent advice.
An exit strategy can involve many things like price targets, fundamental changes in the company, and a host of other factors. The factors we will discuss can be applied to any number of stocks traded across the different exchanges.
It’s always prudent to have price targets when buying and selling stocks. The concept is the same as if you were shopping for a car. If you had your eye on a car that was worth $20,000, why would you pay $25,000 when you knew it was worth $20,000?
This same principle applies to stocks. You’ve determined the buy price of a particular stock, now you must determine the exit prices before you buy it. In this you will have two sell prices, one for a loss and one for a gain. For example, if you buy a stock at $20.00, what is your selling price if the stock goes down? The same goes for if the stock goes up, when do you sell?
Target price selling is usually based on percentages. If you were willing to take a 20 percent loss before selling, then for the example above your downside selling price would be $16.00. If you were happy with a 50 percent profit, then your selling price would be $30.00.
Long term investors like to look at fundamentals as an indicator to sell. Sales, profit margins, infrastructure changes, mergers, are all things fundamentalists look at for sell signals.
A significant change in a series of these fundamentals will trigger a sell signal for these investors. The key to being successful in this type of trade is being ahead of the pack. Some people only have to see a few changes to pull the trigger, while others need more evidence to hit the sell button; this is a formula you will have to devise for yourself.
Years end is the time when investors look at tax selling. Tax selling is when an investor looks at their portfolio and decides to sell weak stocks that have lost money. The loss taken on these stocks will offset gains they might have made throughout the year.
You are allowed to carryover stock losses and deduct another $3000,00 over any offset gains. The tax laws are always changing, you’ll need to check with your accountant for an accurate assessment for your specific situation.
Would you sell your Ford to buy a Mercedes? For car enthusiasts this is a better opportunity, for stock players the same principle applies.
If you’re buying stocks, chances are you are always looking for other opportunities. Jumping out of one stock and into another is a good reason to sell the stock. Yes, you will have a taxable event if the stock you’re selling made a profit, but don’t forget – you can sell losers before years end as offsets.
The Psychology of Forex ..
The best time to invest is when you have money. So said Sir John Templeton, the late founder of Templeton Investments. And his advice makes good sense. When you have money you can spend it, save it or invest it. Investing it gives you the opportunity to make a significant profit. Where you invest your money can make all the difference. The stock market has consistently made money for people if they invest with discipline. Research shows that over time people who invest the same amount of money each month make a net profit regardless of the volatility of the market.
Historically the markets alternates between bull and bear. Bull markets are usually where people make the most money and bear markets are when stocks values are down. But overall investors make more money in bull markets than they lose in bear markets. So the key to making money is to have a long-term vision and invest consistently no matter what the market is doing at the moment. This can frighten some people. But if you can overcome the fear and continue to invest whether the market is up or down research suggests you’ll make money over time.
When everyone you know is selling their stock and putting their money in the bank, it’s tempting to join the herd. Putting your money in the bank is a no-risk, low-reward way to manage your money. But you will not make significant interest if you put your money in the bank. Instead it is best to find a mix of stocks that have shown the ability to hold their value and have the potential for growth in which to invest. Don’t be swayed to sell your stock with every negative news report or economic forecast. Invest consistently with an eye towards the future. For most people this leads to success.
The time is always right to invest. But where you invest is very important.
Diversification is one way to hedge against potential losses. Investing all your money in a single stock can be risky. If the company develops a problem, all your money could be lost. A diversified investment portfolio mitigates risk by giving investors several opportunities to succeed. Investing in mutual funds is one way to do this. Mutual funds are stock in several companies which is sold as a package. This investment vehicle has the potential help mitigate volatility.
Investing in companies and industries around the globe also allows for investing anytime you have the money. This can mean anytime of the day or night. Joining an investing group is a good way to try investing. You get access to their experience and research to help inform your investment decisions. Some people prefer professionally managed groups with a track record of success in global markets invest for them. In investing, right now is always the best time to invest. Finding the right companies in which to invest is what really makes investing fun. Properly managing your money makes it profitable.