(Small business coaching) Easy Repayment Are The Best Option For Borrowers
No commentsBy Keri Carrillo
Secured loans - one of the most popular types of loan uses the home or any other property owned by the borrower as collateral. The borrower pledges his property to the lender for the repayment duration. Although there are numerous other types of loan, but lenders are most comfortable while giving a secured loan. The obvious reason for this comfort is the element of security or collateral. This collateral ensures a peace of mind for the lender because he has something to bank upon in case the borrower defaults. This security prompts the lenders to offer loans at low interest rates. Secured loans are panacea for people who otherwise would have faced a rejection due to their poor credit ratings or any other cause. Thus by offering proper collateral almost anyone can get the desired loan. Secured loans can be taken for a wide spectrum of uses such as debt consolidation, renovation of homes, funding a holiday or buying a new car.
The amount a person can get as a secured loan is dependent to a large extent on the value of the collateral. With proper collateral, secured loans of 5000 to 50,000 are easily available. However, if the lenders feel that the collateral is of sufficient value and the borrower has a good credit history, they do not hesitate in lending large amounts. Secured loans come with very easy repayment options and lenders keep borrower’s requirements into consideration while deciding on repayment plans. Secured loans have repayment periods stretching from five to twenty five years.
APR (Annual Percentage Rate) should be given serious consideration by every borrower who wants to take a secured loan. The APR is the interest rate charged on the loan. Secured loans have very low APR’s ranging between 5% to 8% depending on the loan term, collateral value and credit worthiness of the borrower. While taking a secured loan a borrower has to pay some fees to the lender. The lender has to ensure that the collateral is of sufficiently high value. For this purpose he takes the help of a professional valuator. This professional engagement has to be paid by the borrower. The solicitor’s fees are also charged for preparing legal documents. The conveyance and office charges also add up the cost of taking a secured loan. The borrower should be aware of all such fees and ask the lender about it in advance.
The process of applying for a secured loan has become very easy and hassle- free thanks to the modern advances in information technology. All the leading financial institutions and top of the line lenders have online presence these days. It takes just a few minutes to submit an online application via the lender’s website. A borrower can also apply through a phone and by visiting the lender’s office in person.
Since a valuation process is involved in taking secured loans, the approval of such loans take a longer time as compared to unsecured loans. Lending agencies, in spite of having collateral will like to ensure the borrower’s creditworthiness. For this the lenders take the help of existing credit rating agencies. Most of the lenders take explicit permission from the borrower before performing any credit check. The entire process from submitting the application form for the secured loan to loan approval will be completed within 30 days in most cases. A credit agreement will enforce the terms and condition of loan on both parties- the lender and the borrower. It would be a wise decision if a borrower goes through the fine print of this agreement to avoid falling into any trap, which might be detrimental to his financial and other interests. Shopping around for the right lender with the most economical offer and the lowest APR will save a fortune for the borrower.
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Take Your Focus Off the Risks For The Moment: The Upsides of Having a Credit Card
By Quintin Whitfield
There are very few things that are as ubiquitous as the credit card. This little rectangle of plastic can give us so much convenience, but to the unwary can also bring so much misery. Credit cards may be the easiest way to get a standby line of revolving credit, always available when you need it, but it can also be the fastest way to get mired in credit card debt. People may complain about credit card debt but everyone agrees that despite the risks, there are too many drawbacks to not having a credit card.
Credit cards as we know them today are relatively new and are continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid-seventies. It may be timely that Congress is currently considering added measures to enhance consumer protection. Yet, for a long time, people were using credit cards as a convenience product rather than as loans. Many people paid their entire balance each month. Credit cards were not as essential then as they are now.
Banks do not make money if people did not carry balances since a grace period for purchases, where no interest is charged for one month, is usually standard. As far as banks are concerned, the best credit card customer is one who carries a balance each month after remitting the minimum payment on time. Credit card issuers got really creative and have managed to make credit cards a necessary part of daily living. They worked to have credit cards accepted in more and more establishments, and to have credit card holders understand the many benefits and conveniences that they stood to gain from using their credit cards.
In our times, credit cards no longer a luxury. If you travel, you need your credit card to book flight reservations and reserve hotel rooms. You also need credit cards to rent cars, to purchase gas, and buy products by telephone or online. Being without credit cards today would make your life as difficult as traveling by horse and buggy. Without our even being aware of it, credit cards have become a business standard.
A credit card is one of the quickest ways to build a credit history. When you apply for a credit card and you still have no history, there are credit card issuers that you can approach. These issuers specialize in providing credit card products to customers who, because they are still attempting to establish or expand their credit history, are generally evaluated as higher credit risks. Many college students, for example, fall into this category, along with those who have limited employment income, or otherwise have poor credit history.
Today, having credit is a necessity. An inexpensive, reliable new car costs thousands of dollars, and although most people may want to pay in cash, the reality is they will need a loan. The rates and terms of that loan will be determined by your credit history, which is easily obtainable from the credit bureaus throughout the country. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the result will be a more costly loan with higher interest rates.
The use of the credit card as a source of loans is illustrated by the fact that overall credit card debt now runs several hundred billions of dollars. Credit card debt has risen quickly to unimaginable proportions, and still banks continue to compete heavily for your business. Every year, billions of credit card flyers with invitations to transfer to another card issuer are sent out. The average American credit card holder is now in possession of almost a dozen credit cards, with average debt of $13,000. The credit card has indeed become a cornerstone of everyday living. Other than its necessity in making flight and hotel reservations, credit cards help the credit card holder with:
“Cashless” transactions that avoid the risk of carrying around too much cash
An interest-free loan from the time of purchase until the payment is due
Cash advances from an ATM, in emergency cases
The ability to shop by telephone or online
The ability to purchase items when cash is not sufficient
The ability to withhold payment when dissatisfied with a purchase or to dispute erroneous billings
An instant source of credit that is available without filling out forms or undergoing further credit checks.
Cash, when it gets lost, is irretrievable; unlike cash, if you lose your credit card you can get a replacement no matter where you are. You also get protection against fraud or unauthorized use, which means you have minimal or even zero liability. Credit cards can be a resource in case of emergencies, such as a large car repair bill or an unforeseen expense.
Credit card companies normally provide the card holders with copies of their monthly statements. These statements list down in detail all charges that have been made against your credit card account. The monthly statements can thus serve as a complete financial record which, to the prudent credit card user, can become a guide for budgeting and controlling expenses. If the card user is a student, the monthly statements can become a tool for learning financial responsibility. Indeed, for personal finances and small businesses, credit cards have become a necessary financial tool.
There is also the prospect of being able to save money on future transactions because the usual credit card offers a number of rewards privileges that include frequent flyer miles, cash rebates, discounts or free telephone calls, points that go towards reduction of the cost of airplane tickets and hotel stays, points that can be redeemed as consumer products or gift certificates. All of the major credit cards - Visa, MasterCard, American Express - offer a multitude of card products with endless permutations on rewards, benefits and privileges that you can enjoy to maximize the value you get from your credit cards.
Ownership of a credit card entails certain responsibilities on your part. If these responsibilities are not exercised dutifully, you could unwittingly put yourself in a difficult situation where you lose your credit card privileges and suffer the drawbacks of not having credit cards. Your primary responsibilities as a credit card holder include the obligation to pay your bills on time, to stay within your pre-set spending limit, and to maintain the worthiness of your credit.
The convenience of having credit cards may tempt you to live beyond your means. You need to remember that excessive credit card debt and late payments will impair your credit rating and make it more difficult and costly to obtain credit in the future. Remember it is very easy to lower your credit ratings, but painfully slow to raise it.
It is now more important than ever to be effective at managing credit card debt. This is particularly true for people living from paycheck-to-paycheck and who must dip into their credit sources to make ends meet. If you are able to plan your credit spending and payments to your account, you will be rewarded with higher lines of credit and better rates. Otherwise, if you’re not efficient and disciplined with your credit card, you’ll have very few options available.
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Business Coaching Information From A Professional Source
(Business coaching training) The One Question to Consider Regarding Financial Freedom!
No commentsBy Quintin Whitfield
PREAMBLE: The only way to take control of your life, raise your standard of living and move beyond merely surviving is to create your own unique product or service that you offer to increasing numbers of people in exchange for the things of value that you desire. This simple formula applies to countries as well as people. A self-sufficient economy has its own products or services of value to export to the world. Similarly, a self-sufficient individual has something of value to exchange in the global marketplace. That thing of value is based on your natural talent, skill, or interest-in other words, your passion.
NOTE: The following article was originally written for the citizens of the island nation of Saipan. It therefore includes references of a nature unique to that nation’s economic situation.
When you think of what can help the you elevate yourself from your current economic situation, it’s important not to lose sight of a few important ideas and truths about money, value, and economics.
I. MONEY IS A MEANS OF EXCHANGE
No one ever gives you money except in exchange for something of value.
II. EXCHANGE IS THE REAL ISSUE
Don’t let anyone mislead you. The only reason we focus on money is simply because the world has agreed that money is the basis of exchange that we’re going to use. I have eggs. You have a cow. If you want what I have, and I want what you have, then we can exchange my eggs for your cow. But you may not want eggs. You may want something that I do not have. And I may not want a cow. I may want something you do not have, like a car. So we all agree that eggs are worth a certain amount of money, and that a car is worth a certain amount of money. I can now sell my eggs for money, and get the money to buy a car. But all I really did was trade eggs for a car, using money as the means of exchange. So it’s not the money that’s driving the economic engine, it’s the exchange.
Now, then, there are four ways that one can engage in the process of exchange:
1. You can accept money but give nothing in return (rip-off)
2. you can accept money and give a partial or corrupted version of what was expected. (short-changing)
3. you can accept money and give exactly what was ordered. (fair exchange)
4. you can accept money and give more than was expected. (exchange in abundance)
By the way, Exchange Method four, (accepting money and giving more than expected) is the only way to ensure one’s long-term survival and prosperity. But more on that in a future column.
III. PRODUCTS ARE THE BASIS OF EXCHANGE
“When a whole society demands a high
standard of living and yet doesn’t concentrate
on the personal production of exchangeable
products, it is finished.”-The Dynamics of Money
So how does one engage in exchange with the world? Simple. You need a product. A PRODUCT can be defined as “a high quality service or article in the hands of the consumer in exchange for a valuable. It is something that can be exchanged with other activities in return for support.”
IV. THE QUESTION IS…
So the single, most important question to be asked of those who steer the course of nations, its citizens, investors, business owners, and potential Saipanpreneurs is: WHAT ARE WE PRODUCING?
When someone suggests a solution to the economic situation, ask him, “Great idea, but what are we producing?”
When someone suggests an idea for how to get loans and federal assistance, ask her, “Great, but what are we producing?”
When someone suggests an idea for a business you can start, ask yourself, “What am I producing?”
If there is no production, there is no money-no real, long term money.
A FLAWED PLAN
I always tell my clients that any plan that relies too much on another person’s whim, good will or largess for its success is inherently a flawed plan. It may provide a short-term stop-gap measure, but there is no dependable future or control built in.
Selling someone the hope or possibility of doubling their money based on the internal programming of a slot machine is not exchanging something of value. It’s essentially giving nothing in return. It’s a rip-off.
Sure, you can call it entertainment if you wish, but at the end of the day, you’ve not improved your lot in life, because you’re not exchanging anything of real value that can grow, improve your reputation, bolster your self-esteem or raise your standard of living. Furthermore, since it is not based on anything over which you have any creative input or control, you cannot use it dependably to improve the welfare of the masses.
It’s not an industry into which any average person of entrepreneurial aspirations but meager means can venture. It’s a limited industry with power concentrated in the hands of the few.
Having people running around throwing their money into slot machines doesn’t automatically improve the lot of the general population. Sure, there may be some collateral spending in stores, new jobs in the hospitality/service sectors, but by far the biggest winners are the casino owners. From my own limited travel experience, I’ve been to Atlantic City, in New Jersey, and witnessed stark poverty just beyond the fences of prosperous casinos. There’s no guaranteed “trickle down.”
The danger in basing economic growth on simply providing a place for people to throw their money into slot machines is that the world doesn’t need another place to do that–least of all a place way out in the Pacific Ocean. Any place with better entertainment, a more convenient location or nicer hotels, will win the competition for tourist dollars.
And, it would be sad to think that the only thing this beautiful land and its people have to offer is a place for people to gamble money in search of an easy payoff. It’s a slap in the face of the traditional creativity, natural beauty, the spirit of self-sufficiency that have existed here for centuries.
A NEW DIALOGUE
If you continue to perpetuate the idea that we can be saved only by someone else’s money, then those presently without money are rendered powerless in the discussion. If, on the other hand, you change the dialogue to discussions of finding our “value” in the marketplace, then everyone can participate.
Without such a new dialogue, and the real, long-term solutions that come with it, we’ll perpetuate lowered expectations, and witness the downward spiral of self-esteem and hope that comes with the exclusive dependency on others for salvation. When a people subjugate themselves and their inherent value to the value of a dollar, there are things you cannot see that will be visible only in their absence. For a nation’s humanity, once lost can never be replaced.
IV. SUMMARY
Money is a means of exchange.
Exchange is the challenge to be solved.
Products and Services form the basis of Exchange
No production=No Money
The only real question, therefore, is: What Are YOU Producing?
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Don’t Cancel Your Endowment Policy Without Being Carefully Informed
By Quintin Whitfield
Back in the 1980s word went around that there was a wonderful new way to pay your mortgage. In those days the process of getting and running a mortgage was almost sacrosanct, and little variation was available. A fairly common route to take was to open an account at the Building Society of your choice, and to put in as much money as you could, the intention being to prove to said Building Society that you were prudent and could be trusted with their money.
When the time for a mortgage arrived, it was best suit on for an appointment with the branch manager to convince him of your dependability, and if you were successful you were given a (typically) 25 year repayment mortgage. Inflation was your friend because you usually started off committed to a monthly repayment which made yours eyes water, but as time went by the real value of this dwindled in significance.
When you had completed your 300 monthly repayments the property was yours. It was all very straightforward until the endowment mortgage arrived. With this you paid only the interest due, with a promise of lower monthly commitment. At the end of the term a sum would be handed to you which would be sufficient to pay off the capital sum of the mortgage and leave you with enough to enjoy a brief excursion into the wild life of regular meals and even exotic holidays, which in extreme cases may even have been outside the UK!
That was the dream which was eagerly taken up by many hardworking mortgage owners and unfortunately, also by some over eager salesmen. The sum necessary to pay off your mortgage was not guaranteed, and in the majority of cases it didn’t. Therein lies the formation of the mis-selling scandal; many building societies took great care to explain to their mortgage customers the modus operandi of the endowment system and the many pitfalls which could trap the unwary. Tragically many individual salesmen and some building societies omitted to adequately cover some of the less palatable facts.
This created great distress in some cases; figures produced for 2004 show that almost 7 million endowment mortgages were unlikely to provide sufficient funds to pay off the mortgage debts, leaving less than 2 million which should achieve their objective. Thus the flood tide of the 1980s which saw home owners clamouring for endowment mortgages suddenly became an ebb tide, with endowment holders looking for a way of getting back to the old system, or to one of the newer but more reliable alternatives. Great caution is necessary in this situation.
First of all you need to look carefully at your endowment mortgage to determine its value. If you are still in the early years of its operation, you will find that despite your monthly payments you have a document with very little value. This is because you have been paying the premium for the endowment agreement itself, the interest due on your mortgage loan and life insurance to cover repayment of the loan if you should die before completion.
A very important factor in an endowment is the terminal bonus. You will have received the benefit of annual bonuses along the way, but the terminal bonus is normally the very high value one; it could well provide more than half the final value of the payment which you will receive, but will be lost if you cancel. To make matters more difficult, the value of the terminal bonus is not guaranteed and will not be known until the endowment is fully paid up. It may be that you are in the situation where you will lose money whichever route you take.
If you do decide to proceed with the sale of the endowment, either because you need the money or because you are in the fortunate position where sale would be advantageous, you need to shop around. Certainly you should obtain a sale figure from the company who provided the endowment in the first place, but you are also free to go into the market place for these mortgages and see what offers you can get. It is very likely that the price which you will be offered in this way will be better than that which the original issuer is prepared to allow you.
You will find that different companies have different criteria relating to which endowments they would be interested in buying. For instance, some will not be interested if the sale value is below a certain figure, or may require the endowment to have been operational for a specific minimum period. Realistically you should seek professional help in reaching a decision; a company which has contacts within the Association of Policy Market Makers (which represents companies who deal in endowment trading) will be better placed to find you the best deal. There will be a charge for their expertise, but you should benefit from a better price and save yourself a lot of time, work and worry.
Remember that if you sell your endowment mortgage, you will fairly certainly also be cancelling your accompanying life cover and should ensure that you obtain a replacement policy, preferably before the cancellation takes effect. There is little harm in duplicating your cover for a short time, but there could be very unfortunate results from even the shortest period without cover.
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When Should You Refinance?
By Rich Bird
Homeowners who are considering re-financing their home may have a wealth of options available to them. However, these same homeowners may find themselves feeling overwhelmed by this wealth of options. This process doesn’t have to be so difficult though. Homeowners can greatly assist themselves in the process by taking a few simple steps. First the homeowner should determine his refinancing goals. Next the homeowner should consult with a re-financing expert and finally the homeowner should be aware that re-financing is not always the best solution.
Determine Your Goals for Re-Financing
The first step in any re-financing process should be for the homeowner to determine his goals and why he is considering re-financing. There are many different answers to this question and none of the answers are necessarily right or wrong. The most important thing is that the homeowner is making a decision which helps him achieve his financial goals. While there are no right or wrong answer to why re-financing should be considered there are, however, certain reasons for re-financing which are very common. These reasons include:
- Reducing monthly mortgage payments
- Consolidating existing debts
- Reducing the amount of interest paid over the course of the loan
- Repaying the loan quicker
- Gaining equity quicker
Although the reasons listed above are not the only reason homeowners might consider re-financing, they are some of the most popular reasons. They are included in this article for the purpose of getting the reader thinking. The reader may find their mortgage re-financing strategy fits into one of the above goals or they may have a completely different reason for wanting to re-finance. The reason for wanting to re-finance is not as important as determining this reason. This is because a homeowner, or even a financial advisor, will have a difficult time determining the best re-financing option for a homeowner if he does not know the goals of the homeowner.
Consult with a Re-Financing Expert
Once a homeowner has figured out why they want to re-finance, the homeowner should consider meeting with a re-financing expert to determine the best refinancing strategy. This will likely be a strategy which is financially sound but is also still geared to meeting the needs of the homeowner.
Homeowners who feel as though they are particularly well versed in the subject of re-financing might consider skipping the option of consulting with a re-financing expert. However, this is not recommended because even the most educated homeowner may not be aware of the newest re-financing options being offered by lenders.
While not understanding all the options may not seem like a big deal, it can have a significant impact. Homeowners may not even be aware of mistakes they are making but they may here of friends who re-financed under similar conditions and receive more favorable terms. Hearing these scenarios can be quite disheartening for some homeowners especially if they could have saved considerably more while re-financing.
Consider Not Re-Financing as a Viable Option
Homeowners who are considering re-financing may realize the importance of evaluating a number of different re-financing options to determine which option is best but these same homeowners may not realize they should also carefully consider not re-financing as an option. This is often referred to as the “do nothing” option because it refers to the conditions which will exist if the homeowner does not make a change in their mortgage situation.
For each re-financing option considered, the homeowner should determine the estimated monthly payment, amount of interest paid during the course of the loan, year in which the loan will be fully repaid and the amount of time the homeowner will have to remain in the home to recoup closing costs associated with re-financing. Homeowners should also determine these values for the current mortgage. This can be very helpful for comparison purposes. Homeowners can compare these results and often the best option is quite clear from these numeric calculations. However, if the analysis does not yield a clear cut answer, the homeowner may have to evaluate secondary characteristics to make the best possible decision.
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(Executive business coaching) Turning Your Dreams Into Reality With Secured Loans In The UK
No commentsBy Keri Carrillo
Secured Loans UK facilitate borrowers to avail of capital against the value of the asset placed as security with the creditor. The creditor now has the ownership rights to the asset, which acts as guarantee against the loan. Although the asset is normally in the form of a home, security can also be offered by placing any concrete property, a vehicle or a valuable asset as collateral. This is why; secured loans UK are often referred to as “UK Homeowner Loans”, “Secured Personal Loans UK” or “Second Charge Loans UK”. For secured loans UK, depending on the value of collateral, lenders are willing to offer large sums ranging from 5,000 to 75,000 or more and the repayment period extends from 5 to 25 years.
In the UK, Secured Loans have a very diverse and competitive market. Although they were primarily taken in a financial crisis, nowadays, they are used for almost anything: for taking that long awaited vacation, home improvement, education, to pay off pending bills, debt consolidation, to buy the car you’ve always wanted and to fulfil unlimited dreams and aspirations.
The interest charged on loans is known as APR (Annual Percentage Rate). For secured loans, it varies, depending on personal details of the borrower (like credit history), the loan amount, the loan term, etc. In the UK, interest rates are the lowest on secured personal loans. Typical APR ranges from 6% to 25%. Sufficient collateral with good financial conditions will get you the best interest rates and a more relaxing repayment option. Home and real estate property commands the lowest APR. Automobiles and title to motor vehicles too command a good interest rate, but higher than that in homes.
Lenders prefer secured loans uk because they come with a lower degree of risk. . Lenders are in no way interested in repossessing people’s homes or any other asset kept as collateral. Since, repossession, maintenance and liquidation puts a huge cost on the lender, he prefers repayment by the borrower. Only in extreme cases, when the loan appears to become a bad debt, lenders undertake repossession of collateral. Since the fate of an asset of theirs is on stake, not many borrowers in the UK would take the step to be irregular in repayments. Consequently, the risk involved in secured loans UK, is lower. Apart from the convenience in securing UK secured loans, cost is the most influential factor in the decision regarding UK secured loans. Secured loans are low priced, thanks to the low rate of interest.
As secured loans are backed by collateral, most lenders approve loans even in cases of C.C.J’s, defaults, county court judgements and arrears. This makes secured loans very attractive to people all over UK, who would otherwise not qualify for a loan from their local bank. If a borrower has exceptional credit history and good financial standing he can expect amounts ranging up to 125% of his property value. All this depends on how comfortable a lender feels with the borrower’s collateral and credit history.
Repayment options offered all over UK are very flexible although the options presented are no more different from Unsecured Loans UK. Borrowers find the process of getting a secured loan very dissuading. The solution to these impending problems is to look for a lender who offers online applications or completes the process with minimum documentation and a minimum encroachment on time and privacy. Once a secured loan application has been processed and accepted, a no obligation offer is made. It usually takes around 14 days for a UK secured loan to be completed and you can cancel any time within this period, with no penalties.
Every year there are borrowings worth billions of pounds by the UK nationals for Secured Loans UK. These are becoming more of a necessity to live and also to meet the high standard of living in the UK. Taking a loan is no longer a bad option; in fact, it is a more practical outlet. Shopping around and playing an active role in choosing the loan and its repayment options, gets you the best deals. An all purpose loans for any person has not found a better name than Secured Loans UK.
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The One Question to Consider Regarding Financial Freedom!
By Quintin Whitfield
PREAMBLE: The only way to take control of your life, raise your standard of living and move beyond merely surviving is to create your own unique product or service that you offer to increasing numbers of people in exchange for the things of value that you desire. This simple formula applies to countries as well as people. A self-sufficient economy has its own products or services of value to export to the world. Similarly, a self-sufficient individual has something of value to exchange in the global marketplace. That thing of value is based on your natural talent, skill, or interest-in other words, your passion.
NOTE: The following article was originally written for the citizens of the island nation of Saipan. It therefore includes references of a nature unique to that nation’s economic situation.
When you think of what can help the you elevate yourself from your current economic situation, it’s important not to lose sight of a few important ideas and truths about money, value, and economics.
I. MONEY IS A MEANS OF EXCHANGE
No one ever gives you money except in exchange for something of value.
II. EXCHANGE IS THE REAL ISSUE
Don’t let anyone mislead you. The only reason we focus on money is simply because the world has agreed that money is the basis of exchange that we’re going to use. I have eggs. You have a cow. If you want what I have, and I want what you have, then we can exchange my eggs for your cow. But you may not want eggs. You may want something that I do not have. And I may not want a cow. I may want something you do not have, like a car. So we all agree that eggs are worth a certain amount of money, and that a car is worth a certain amount of money. I can now sell my eggs for money, and get the money to buy a car. But all I really did was trade eggs for a car, using money as the means of exchange. So it’s not the money that’s driving the economic engine, it’s the exchange.
Now, then, there are four ways that one can engage in the process of exchange:
1. You can accept money but give nothing in return (rip-off)
2. you can accept money and give a partial or corrupted version of what was expected. (short-changing)
3. you can accept money and give exactly what was ordered. (fair exchange)
4. you can accept money and give more than was expected. (exchange in abundance)
By the way, Exchange Method four, (accepting money and giving more than expected) is the only way to ensure one’s long-term survival and prosperity. But more on that in a future column.
III. PRODUCTS ARE THE BASIS OF EXCHANGE
“When a whole society demands a high
standard of living and yet doesn’t concentrate
on the personal production of exchangeable
products, it is finished.”-The Dynamics of Money
So how does one engage in exchange with the world? Simple. You need a product. A PRODUCT can be defined as “a high quality service or article in the hands of the consumer in exchange for a valuable. It is something that can be exchanged with other activities in return for support.”
IV. THE QUESTION IS…
So the single, most important question to be asked of those who steer the course of nations, its citizens, investors, business owners, and potential Saipanpreneurs is: WHAT ARE WE PRODUCING?
When someone suggests a solution to the economic situation, ask him, “Great idea, but what are we producing?”
When someone suggests an idea for how to get loans and federal assistance, ask her, “Great, but what are we producing?”
When someone suggests an idea for a business you can start, ask yourself, “What am I producing?”
If there is no production, there is no money-no real, long term money.
A FLAWED PLAN
I always tell my clients that any plan that relies too much on another person’s whim, good will or largess for its success is inherently a flawed plan. It may provide a short-term stop-gap measure, but there is no dependable future or control built in.
Selling someone the hope or possibility of doubling their money based on the internal programming of a slot machine is not exchanging something of value. It’s essentially giving nothing in return. It’s a rip-off.
Sure, you can call it entertainment if you wish, but at the end of the day, you’ve not improved your lot in life, because you’re not exchanging anything of real value that can grow, improve your reputation, bolster your self-esteem or raise your standard of living. Furthermore, since it is not based on anything over which you have any creative input or control, you cannot use it dependably to improve the welfare of the masses.
It’s not an industry into which any average person of entrepreneurial aspirations but meager means can venture. It’s a limited industry with power concentrated in the hands of the few.
Having people running around throwing their money into slot machines doesn’t automatically improve the lot of the general population. Sure, there may be some collateral spending in stores, new jobs in the hospitality/service sectors, but by far the biggest winners are the casino owners. From my own limited travel experience, I’ve been to Atlantic City, in New Jersey, and witnessed stark poverty just beyond the fences of prosperous casinos. There’s no guaranteed “trickle down.”
The danger in basing economic growth on simply providing a place for people to throw their money into slot machines is that the world doesn’t need another place to do that–least of all a place way out in the Pacific Ocean. Any place with better entertainment, a more convenient location or nicer hotels, will win the competition for tourist dollars.
And, it would be sad to think that the only thing this beautiful land and its people have to offer is a place for people to gamble money in search of an easy payoff. It’s a slap in the face of the traditional creativity, natural beauty, the spirit of self-sufficiency that have existed here for centuries.
A NEW DIALOGUE
If you continue to perpetuate the idea that we can be saved only by someone else’s money, then those presently without money are rendered powerless in the discussion. If, on the other hand, you change the dialogue to discussions of finding our “value” in the marketplace, then everyone can participate.
Without such a new dialogue, and the real, long-term solutions that come with it, we’ll perpetuate lowered expectations, and witness the downward spiral of self-esteem and hope that comes with the exclusive dependency on others for salvation. When a people subjugate themselves and their inherent value to the value of a dollar, there are things you cannot see that will be visible only in their absence. For a nation’s humanity, once lost can never be replaced.
IV. SUMMARY
Money is a means of exchange.
Exchange is the challenge to be solved.
Products and Services form the basis of Exchange
No production=No Money
The only real question, therefore, is: What Are YOU Producing?
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Don’t Cancel Your Endowment Policy Without Being Carefully Informed
By Quintin Whitfield
Back in the 1980s word went around that there was a wonderful new way to pay your mortgage. In those days the process of getting and running a mortgage was almost sacrosanct, and little variation was available. A fairly common route to take was to open an account at the Building Society of your choice, and to put in as much money as you could, the intention being to prove to said Building Society that you were prudent and could be trusted with their money.
When the time for a mortgage arrived, it was best suit on for an appointment with the branch manager to convince him of your dependability, and if you were successful you were given a (typically) 25 year repayment mortgage. Inflation was your friend because you usually started off committed to a monthly repayment which made yours eyes water, but as time went by the real value of this dwindled in significance.
When you had completed your 300 monthly repayments the property was yours. It was all very straightforward until the endowment mortgage arrived. With this you paid only the interest due, with a promise of lower monthly commitment. At the end of the term a sum would be handed to you which would be sufficient to pay off the capital sum of the mortgage and leave you with enough to enjoy a brief excursion into the wild life of regular meals and even exotic holidays, which in extreme cases may even have been outside the UK!
That was the dream which was eagerly taken up by many hardworking mortgage owners and unfortunately, also by some over eager salesmen. The sum necessary to pay off your mortgage was not guaranteed, and in the majority of cases it didn’t. Therein lies the formation of the mis-selling scandal; many building societies took great care to explain to their mortgage customers the modus operandi of the endowment system and the many pitfalls which could trap the unwary. Tragically many individual salesmen and some building societies omitted to adequately cover some of the less palatable facts.
This created great distress in some cases; figures produced for 2004 show that almost 7 million endowment mortgages were unlikely to provide sufficient funds to pay off the mortgage debts, leaving less than 2 million which should achieve their objective. Thus the flood tide of the 1980s which saw home owners clamouring for endowment mortgages suddenly became an ebb tide, with endowment holders looking for a way of getting back to the old system, or to one of the newer but more reliable alternatives. Great caution is necessary in this situation.
First of all you need to look carefully at your endowment mortgage to determine its value. If you are still in the early years of its operation, you will find that despite your monthly payments you have a document with very little value. This is because you have been paying the premium for the endowment agreement itself, the interest due on your mortgage loan and life insurance to cover repayment of the loan if you should die before completion.
A very important factor in an endowment is the terminal bonus. You will have received the benefit of annual bonuses along the way, but the terminal bonus is normally the very high value one; it could well provide more than half the final value of the payment which you will receive, but will be lost if you cancel. To make matters more difficult, the value of the terminal bonus is not guaranteed and will not be known until the endowment is fully paid up. It may be that you are in the situation where you will lose money whichever route you take.
If you do decide to proceed with the sale of the endowment, either because you need the money or because you are in the fortunate position where sale would be advantageous, you need to shop around. Certainly you should obtain a sale figure from the company who provided the endowment in the first place, but you are also free to go into the market place for these mortgages and see what offers you can get. It is very likely that the price which you will be offered in this way will be better than that which the original issuer is prepared to allow you.
You will find that different companies have different criteria relating to which endowments they would be interested in buying. For instance, some will not be interested if the sale value is below a certain figure, or may require the endowment to have been operational for a specific minimum period. Realistically you should seek professional help in reaching a decision; a company which has contacts within the Association of Policy Market Makers (which represents companies who deal in endowment trading) will be better placed to find you the best deal. There will be a charge for their expertise, but you should benefit from a better price and save yourself a lot of time, work and worry.
Remember that if you sell your endowment mortgage, you will fairly certainly also be cancelling your accompanying life cover and should ensure that you obtain a replacement policy, preferably before the cancellation takes effect. There is little harm in duplicating your cover for a short time, but there could be very unfortunate results from even the shortest period without cover.
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Business Coaching Information From A Professional Source
Proof Scam Your (business coaching services) Loan
No commentsBy Boyce Gomez
Looking for a personal loan? Bring your common sense with you. If you don’t make smart decisions, you could end up being scammed-losing money when you need it the most. Here are some ways of avoiding loan traps.
First of all, don’t believe the first brochure you read. Look around and see what the rates and terms are, and be particularly careful of really low loan rates. . Sometimes the lender sneaks in teaser rates that will adjust later or gives you a quote for a different type of mortgage product.
Second of all, find out your own credit score. Some companies will scare you into thinking that you have such a bad credit rating that you’d be lucky to get any rate (which, in turn, will make you more amenable to accepting their terms on the loan). No, don’t fall for that one: get your credit rating yourself. You may actually be surprised; many of us have better scores than we think we do.
Third of all, don’t sign any document that has blanks or contains incorrect information. Remember that everything you are signing becomes a legal fact. If you sign a document that doesn’t have all the particulars filled in, then whatever the lender writes in will be forever held against you. And if you don’t understand something, don’t sign it.
Fourth of all, always reread a contract before signing it. Some very sneaky companies change the interest rates and loan amounts after negotiation. Protect yourself from this and comb through the documents. If there’s an error and they correct it, disappearing from the room to print out a new copy, then reread it again when they bring it back. All of it, not just what you changed. Hey, better safe than sorry.
Double-check that the interest rates and loan amounts all add up at closing. Sometimes a lender will try to sneak a different rate in, hoping you won’t notice. Make sure that everything is correct.
And of course, never lie about anything. Fraud can land you in jail. So don’t ever overstate your income, understate your expenses, or give false information about your company just to secure a loan. If you get caught, the consequences will be very, very expensive. Think Jail. Think seeing your business license revoked. Think having your company investigated by attorneys and seeing every detail of the investigation in your local newspaper.
Another important rule of thumb: borrow according to your needs, not according to the sales talk you get. If someone calls you and offers you a refinance, you should probably turn it down. If you don’t need to refinance, don’t do it. Some shady lenders use this as a way to make money off of you by charging large fees and offering refinances every year, or more often.
This is related to another tip: don’t let a lender talk you into a larger loan. Only borrow what you know you can afford. Don’t let any lender ever talk you into a larger loan.
The key to avoiding fraud is in being educated, asking a lot of questions and understanding that the lender is not your friend. Be friendly, but be cautious. And most of all, be smart.
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Business Coaching Information From A Professional Source
Loans For Secured (business coaching) Consolidation
No commentsBy Homer Molina
If you are looking for ways to make your debt repayments more manageable then our secured loans, consolidation UK loans from our top lenders could be the answer. Our lenders offer a wide product range at competitive interest rates and with repayment terms to suit your needs.
Secured loans, consolidation UK loans are defined by the fact that they are granted using the borrower’s home as security or collateral. This means that if they do not keep up with the repayments on the loan the will eventually have their home repossessed and sold in order to repay the loan. It is wise to ensure that before you secure a debt using the equity in your home, you are confident that you can cover the repayments on secured loans, consolidation UK loans. A simple income and expenditure analysis will give you a picture of your finances and enable you to budget for additional loan repayments. To work out exactly how much you need to borrow you must work out a total figure for your debts - don’t forget to ask your creditors for settlement figures, not balances, as any additional charges like early redemption penalties must be included. This is an early settlement charge that some creditors charge when you pay off a debt earlier than agreed at the outset and can be up to 2 months interest.
The amount you borrow is subject to a charge by the lending company and is called the Annual Percentage Rate or APR. Lenders usually quote typical interest rates for secured loans, consolidation UK loans but these are only indications of what you may be offered and not a guarantee. The exact interest rate you are charged will depend on the amount you wish to borrow, the number of years you need to pay back the loan (term) and the lender’s flexible assessment of your unique situation and ability to repay the loan as agreed. You’ll enjoy lower Interest rates for secured loans as apposed to unsecured loans because the lender is taking a lower risk with you betting your home that you will repay the loan.
Comparing APRs is a good way to see just how competitive different secured loans, consolidation UK loans and lenders are. You may even find that the same lender offers lower interest rates for the same product if you apply online as apposed to using the telephone. Interest rates are also referred to in different ways, depending on your repayment preferences. You may choose a fixed interest rate or variable interest rate. With a fixed interest rate your monthly repayments are fixed for the entire term of the loan and remain unaffected by fluctuations in the bank base rate. This will give you the security of knowing exactly how much you are expected to pay each month. In the case of variable interest rates, the rate you pay is linked to the bank base rate and could go up and down from month to month. This would make it difficult to budget accurately but would give you the flexibility of benefiting if interest rates drop. On the other hand, if rates increase you will end up paying more for your loan.
Some lenders allow you some flexibility in permitting over-payments and lump-sum payments with secured loans consolidation UK loans. This could enable you to clear your debt over a shorter period if you can, thus bringing down the total cost of the loan.
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Business Coaching Information From A Professional Source
Financing With Low Rate Unsecured Loans
By Boyce Gomez
Life is unpredictable. Crisis can occur at anytime. You may then need money urgently. You have accessed all your resources but are still unable to get the desired amount. What would you do then? I witnessed a similar situation. Once when I faced a financial disaster, I decided to take a loan. The excessive rate of interest charged on the loan troubled me. But one day a friend suggested me to opt for low rate unsecured loans. They came as a benediction in my difficult time.
Before opting for low rate secured loans, one has to be sure of what exactly a low rate loan implies to him. A low rate loan is a combination of low cost, lower monthly payments, longer repayment period and flexible repayment options.
Low interest unsecured loans are especially designed for borrowers who do not want to put their property into the risk of repossession by the lender. They are capable of providing loans at quite a reasonable rate. These loans are ideal for both tenants and homeowners.
Normally, a loan seeker can borrow money ranging from 3,000 to 25,000 and can repay somewhere between six months to ten years. The loan amount however differs from lender to lender.
People with a bad credit score can also avail the advantage of low rate unsecured loans. Since you are a bad debtor, it is important for you to know your FICO score. FICO score is a credit score developed by Fair Isaac & Co. It ranges from 300-850. A credit score of 850 is considered as the best and a score below 600 is considered as poor. Grades are given ranging from A-E depending upon the credit score. Knowledge of the credit score will protect you against treachery by the loan provider and help you get proper rates.
Low rate unsecured loans can serve many purposes such as debt consolidation, making home improvements, purchasing a holiday package, meeting wedding expenses and much more.
Variety of lenders in the form of banks and financial institutions providing you low rate unsecured loans exist in the market. Shop around for the best deal. One should be open about his financial status and bad credit, if any. The lender will be able to provide you a better deal if he knows your financial stability.
With a rapid advancement in science and technology, nowadays there are lenders available online who are ready to serve you at their best. The borrower is required to fill in an online application form that includes details like name, address, employment history and other related information. The details of the borrower remain confidential. The best loan providing organizations will always keep you updated with your transactions. The borrower can also seek timely advice from online loan advisors.
Opting for low rate unsecured loans is a wise decision in order to overcome your financial crisis. It enables you to draw money at an affordable rate of interest hence helping you manage your finances well.
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Some Of The Simple Ways To Secure A Bad Credit Home Loan
By Homer Molina
Bad credit, the word itself signifies that the person is not financially stable or is financially weak. A person will fall into this category when he does not pay his credit card bills or mortgage payments on time or didn’t pay his dues. Too much of borrowing habits, bankruptcy etc on the specified period will also make negative marks on the credit report. A person is having poor credit history or bad credit scores, then his financial part will get affected and he has to try to solve all the discrepancies.
To get out of the poor credit score or to improve his situation he has to follow some most important points and they are:
Stop using credit cards further or to keep the balances low.
Pay off the debts, by simply paying the exact amount due.
Pay the bills on time.
Check the credit report for accurate information.
If the person with bad credit score is planning to buy a home, he must improve his financial position first by choosing a good mortgage banker. After the situation of bad credit is controlled, he can get a loan with better rate of interest and lower monthly payments and he will fall into the category of better borrower and he will automatically be able to qualify for better loans.
Many lenders are ready to offer bad credit home loan, but the borrower must be in a position to decide on which loan he is going for, because in this type of loan the borrower has be spend more money in the form of rate of interest. Before getting a bad credit home loan, the borrower has to keep some key factors in mind, which will decide to make or break the loan.
The rate of interest offered by the lender must be nominal. The borrower with a good credit will pay less compared to a person with poor credit. There are many lenders who offer low rate of interest, but the borrower must be in a position to find out the lender who offers less interest rate.
Next is the fee. For the borrower with bad credit score, the cost of the fees will be more comparatively. This also varies from lender to lender.
The loan must be chosen suitably, according to the interest rates, repayment that is through short term or long term, current situation of the borrower etc.
Thoroughly know the full details about the loan. The variable interest rates differ from period to period according to market rates. Permanent rate will be constant for the full period. Take time to decide on the best loan by comparing all the options left around. Choose the best lender even though you have a bad credit score, so that financial standards might be better than before.
The biggest advantage of having a good credit score is that the person will get better or lower interest rates on home loans compared to bad credit score and the reason for having good credit score is that he knows how to manage the credit. And the lender will know the status of his credit risk by seeing his credit score and this will very much influence him to offer cheaper interest rate. This will in turn lead to lower monthly payments and saves the money.
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