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Category Archives: Finance

Find Good Balance Transfer Cards

Credit card balance transfer offers can also be used to reduce the interest paid on bank loans or other loans. If the credit limit is high enough, you may even be able to pay off the loans completely. Some credit cards provide credit card cheques for this purpose, but you’ll need to be careful. Some credit card cheques have higher interest rates than the credit card itself, so read the fine print very carefully. Some credit cards also allow you to transfer the balance from store cards. This can be useful after an intensive shopping spree!

Types Of Balance Transfers

There are two main types of credit card balance transfer offer. Many credit card companies offer users the chance to transfer balances for a rate of 0% for a fixed period, such as six or nine months. Once this offer has expired, the interest rate on the transferred balance will revert to the standard variable rate, which is likely to be considerably higher.

The best way to take advantage of 0% balance transfer offers without ending up with higher interest rates is to get a new credit card about a month before the balance transfer offer expires. Then you can transfer the outstanding balance on your old credit card to a new card and continue to save money on credit card repayments. Remember not to apply for too many new cards at once, as this could damage your credit rating.

The second type of balance transfer offer is one that offers a fixed rate on the money transferred for as long as it remains on the credit card. This may be a good option if you’re currently paying interest at a higher rate. These offers tend to offer a rate of around 5% which is considerably lower than standard interest rates. With this type of offer, there’s no need to worry about transferring balances every few months.

Credit Card Purchase Rates

With this type of offer, it’s best to check the rate that applies to purchases. Credit cards that offer a low balance transfer rate often have a higher rate for any spending on the credit card. It is also common to take any payments you make off the lower rate total first, which means you could end up paying quite a bit for spending on the card.

Each type of balance transfer offer has advantages depending on the amount of debt you have, how you spend and how you plan to pay off the credit card balance. Some credit cards and store cards have annual percentage rates that are well over 20%. Shopping around for a balance transfer card could save hundreds.

Basic Finance Terms

Assets

Assets can be described as anything that holds value. Assets can be all types of things from cars to houses. Assets can be used in helping to build credit. For example if you are applying for a house loan, you might use your car as an asset, to show that if you default on a payment, that you have assets to fall back upon such as your car.

Capital

Capital can be a bit of tricky term as it can be used in several different situations to do with finances. Capital can be described as the assets that are available for use towards creating further assets; it can also apply to the cash in reserve, savings, property, or goods.

Debt

Debt is amount of money or something of value that is borrowed from a person referred to as a debtor. Usually a debt that is borrowed will carry some type of penalty along with the payback such as an interest, or service.

Debt Consolidation

Debt Consolidation is replacing multiple loans with a single loan that is normally secured on property. This can often reduce your (the borrowers) monthly outgoing interest payments by paying only one loan which is secured on the property sometimes over a longer term. Because the loan is secured, the interest rate will generally be considerably lower.

Equity

Equity is the difference between the value of a product (for example a house) and the amount that is owed on it.

Liabilities

Liabilities refers to the sum of all outstanding debts in which a company or individual owes to it’s debtors.

Principal

Principal is used to describe the amount of money that is borrowed without including any interest or additional fee’s.

Term

Term refers to the length of a debt agreement. For example if you were to take out a loan for a house over 10 years. 10 years would be the term.

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All about Internet Banking

Most banks however provide secure financial service networks using Secure Sockets Layers or other technology that encrypts information you send over the Internet. That means the data you send from one computer to another is encrypted to prevent outsiders from peaking in and seeing your private information.

This technology, referred to as SSL technology is now accepted or compatible with most browsers including Internet Explorer and Netscape Navigator. Usually you’ll see a little yellow padlock in the right lower hand corner of your screen, indicating that a page is being secured using this technology.

Other Security Measures

Most Internet banks offer other protective measures to ensure your information is kept safe and secure. Some examples of other security measures in place include:

Secure logins

You will create your own online access account number and code that you will need each time you log in.

Limited logins

Many banks limit the number of times you can attempt to log in per day and lock you out if you exceed this. That way someone can’t attempt to break your login code easily.

Limited sessions

Most banks offer limited sessions that require you to re-login after you have been inactive for a period of time preventing anyone from viewing your information if you leave your computer for too long.

About Monetary Policy

In developed economies monetary policy has to serve the function of stabilization and maintaining proper equilibrium in the economic system. But in case of underdeveloped countries, the monetary policy has to be more dynamic so as to meet the requirements of an expanding economy by creating good conditions for economic growth. Monetary policy can be strategic, intermediate and tactical. Under strategic or primary goals the following tasks are very important.
– Increase of employment among the population;
– Normalization of the price level;
– Containment of inflationary processes;
– Acceleration of economic growth;
– Increase in production volumes;
– Alignment (balancing) of the balance of payments of the state.

By contrast intermediate goals are realized by changing the interest rates and the amount of money in circulation. In this way, it is possible to adjust the current demand for the goods and to reduce (increase) the supply of money. The bottom line is to influence the level of price policy, attract investment, increase employment and increase production. At the same time, it is possible to maintain or revive the conjuncture in the money (commodity) market;

Tactical goals are of short-term nature. Their task is to accelerate the achievement of more important – intermediate and strategic objectives:
– Monitoring the supply of money;
– Control of the interest rate level;
– Control of the exchange rate.

Types of Monetary Policy
Each country chooses its own kind of monetary policy. It can vary, depending on external conditions, the state of the economy, the development of production, employment and other factors. The following types are distinguished:

1. Soft monetary policy (its second name is “cheap money policy”) is aimed at stimulating various sectors of the economy by regulating interest rates and increasing the amount of money. At the same time, the Central Bank performs the following operations: – Makes transactions on the purchase of government securities. All operations are conducted in the open market, and the proceeds are transferred to the banks’ reserves and to the population’s accounts. Such actions allow increasing the amount of money supply and improving the financial capacity of banks. As a result, the interbank loan is in great demand;
– Minimizes the rate of bank reservations, which significantly expands the lending opportunities for various sectors of the economy;
– Reduces the interest rate. As a consequence, commercial banks gain access to more profitable loans terms. At the same time, the volume of loans extended to the population on more favorable terms and the attraction of additional funds in the form of deposits.

2. Rigid monetary policy (its second name is “expensive money policy”) is aimed at imposing various restrictions, restraining the growth of money in circulation with the main goal – restraining inflationary processes. With a strict monetary policy, the Central Bank performs the following actions:
– Increases the limit of bank reservations. In this way, a reduction in the growth of the money supply is achieved;
– Raises the interest rate. For this reason, commercial structures are forced to stop the flow of borrowing from the Central Bank and to limit the issuance of loans to the public. The result is a suppression of the growth of money supply;
– Sells government securities. At the same time, transactions are made on the open market due to current accounts of the population and reserves of commercial credit and financial organizations. The result is the same as in the previous case – a decrease in the volume of the money supply.

Adverse Credit Home Loan

Finding a lender

The very first step on the path to finding an adverse credit home loan is to find yourself a lender who is willing to offer you a loan. This may seem like a near impossible task to you, but in fact there are a fair number of lenders who might be able to help you. Property is an attractive item for lenders because if they need to take possession then it will be relatively easy to sell. Take the time to look around to find a lender you are happy with.

One of the best ways of finding a lender is by using the Internet. This saves you the time of travelling to lenders who cannot help you, and also allows you to search specifically for those lenders who specialise in offering adverse credit home loans. As well as searching online you should visit mortgage lenders and banks in your area. The more research you do, then the more likely you are to find the first adverse credit home loan for your needs.

Getting pre-approval

Once you have found the lender you think is right for you, then you need to get pre-approval if possible, Pre-approval means that the lender carries out a number of the credit checks necessary to approve you for a loan, so that they can offer you a guaranteed amount that they will lend you. This allows you to begin looking for a property with a budget in mind, as well as showing sellers that you have the correct finance in place to purchase the property. If a specific lender will not give you pre-approval, then try and find one that does.

Buying a house

Now that you have your pre-approved adverse credit home loan, it is time to find yourself a property. You can look for properties being sold by individuals, or consult a realtor who can help you find a property.

Time Banking

The basic idea of time banking is that everyone can contribute to the welfare of the community by making exchange of services with the others. As an example, if a person needs his car to be repaired, a second person needs flowers for his front yard and another person needs a new table for his kitchen, they could make a deal one with another, even if they don’t have the money to pay for these services. In order to make these kind of exchanges, people who generally don’t meet need to interact, and they need an infrastructure for doing this. This infrastructure is now here.

Time banking is based on time currencies, the units of time exchange. The name of the time currency is different from one time bank to another, but, in every situation, one hour of work has an equal value with one hour of any other kind of work.

The person who had the greatest influence on the time banking movement is Edgar Cahn, a former lawyer. While he was recovering after a heart attack he began thinking about the influence of the 80 hours of work a week on the relationships with his community and family, and imagining the terrible effects of medical emergencies on the uninsured and underinsured. In the 1980s Cahn made known his ideas and he created the concept named time banking, as a solution for these problems. After bringing the time banking concept to Maine, Cahn launched a pilot time bank here in 1998.

Time banking is expanding and time banks, such as Cahn’s Time Dollar networks, now exits in many states of the world, including every state of the U.S., Canada, Japan and Western Europe. For instance, in the U.K. there are more than 140 time banks which have more than 5,000 members. One of these time banks, Time For Health, has been so effective that the U.K.’s National Health Service has commissioned a study on how it works.

Offering equal pay for equal time, time banking has positive effects on women and people of color, whose work has been often under-compensated in the market economy. A proof is that Spain’s time banking movement’s slogan was in the beginning, “Sharing: Promoting the Equality of Time Among Men and Women”. Time banking is also used to offer medical care to the uninsured and underinsured, because many of the members earn too much money to receive free services, but they don’t get health insurance through their jobs.

Edgar Cahn has a new purpose: to create accessibility for groups that are deprived of their citizenship rights and to increase leaders’ consciousness of race and class issues in time banking.

Business Banking

This guide gives you a broad overview of how to open and manage your business account, including:

1. Getting The Right Account For Your Business

How to choose and open your account – what factors to consider and what information you will need.

2. Finding The Finance You Need

Common ways to source funding to set up and run your business, including grants, borrowing, loans and overdrafts.

3. Keeping Your Accounts Healthy

Good practise for managing your account, including info on online banking and finding an accountant.

4. Professional Advice

How to find expert advice on accounting and tax issues. This section includes web addresses for professional bodies.

Having a good relationship with your bank will make a big difference to the success of your business, whether that means extra support when you’re setting up or negotiating an overdraft to smooth your cash flow. Bank business managers can provide a useful source of advice and support – it’s likely they have a good knowledge of the market as well as insight into businesses similar to yours. Based on your individual needs, they should be able to suggest ways to make your business banking more efficient, as well as offer practical solutions to make the most of your account.

As well as your banking contacts, there are a wealth of other sources of help and advice. The government runs several schemes to help businesses get off the ground and keep running – from enterprise loans to business mentors who can guide you through the early stages of your project. Starting a business is a real challenge, but with good planning and sound management, you could turn your dreams into reality!

About Increasing Cash Flow

Lets suppose you own a duplex and your monthly mortgage payment including taxes and insurance is approximately $1200.00.

Now lets suppose you have a tenant on each floor with a one year lease, and you charge each tenant $850.00 a month to live there. This is a total of $1700.00 paid to you on a monthly basis.

Once you have paid your mortgage of $1200.00, you are left with a balance of $500.00, this would be your monthly cash flow from the income producing property.

If you are looking to increase your monthly cash flow, one of the easiest ways to do it would be to raise the rent. This is by far one of the most effective and common ways of increasing cash flow.

Another way to increase cash flow depending on the amount of equity you have established in a property would be to use some of that investment property’s equity to purchase another income producing property.

Using the same principal of charging more than the amount of your total expenses on the property, you will once again be increasing your cash flow.

Keep in mind, when doing any kind of repairs to the home, including landscaping, make sure you save the receipts to be used as a write off. This to will help to reduce earnings, resulting in cash flow in the way of an annual tax return.

About Flexible Mortgage Guide

Although there are a lot of mortgages that claim to be flexible, there are some things that define a truly flexible mortgage. There are four main characteristics you should look for when determining if a mortgage is flexible. These are:

· Being allowed to overpay

· Being allowed to underpay

· Being able to take payment holidays

· Interest is calculated daily

One of the best features of flexible mortgages is the ability to overpay. With traditional fixed repayment mortgages, there is no easy way for you to pay more than your fixed repayment each month. If you have a flexible mortgage, then you will have the ability to pay as much as you can each month. This means that during the good months you can speed up the process of paying your mortgage back. If you regularly overpay then you can save yourself thousands of pounds in interest payments.

Underpayments are another useful feature of flexible mortgages, but they should be used sparingly. If you are unable to make the repayment in a given month, then you can just pay as much as you can, effectively underpaying on your mortgage. Although this is good as it stops you from defaulting, there are penalties involved. The more you underpay, the longer the mortgage will last or the higher your repayments afterwards will be.

Payment holidays are similar to underpayments, but they let you completely halt payment for a period of time. Although this might sound appealing, there are usually restrictions. Lenders will not let you take a payment holiday unless you have overpaid in the past, and after your holiday you will have to overpay again to get the repayments back on schedule. However, payment holidays are useful for people who are self employed or who want to take a break from work for personal reasons.

Another benefit of flexible mortgages is the ability to borrow back money from your mortgage. If you have overpaid in the past but are now in need of extra cash to fund home improvements or some other purchase, then you can borrow the money back that you have overpaid. Although you will be changing your mortgage terms again, getting a loan at the rate of your mortgage is the lowest personal loan rate you can possibly get.

Information of Liquidation of Banks

The law regulating banking operations in Cameroon is however more extensive than the law under which it companies are formed and managed. Banks are regulated by a combination of legal regulations and principles derived from regional treaties particularly that of the commission bancaire des etats de l’Afrique central (COBAC). Indeed , it is a commission formed under the COBAC organization that approves the liquidation of a bank.

Liquidation is the winding up of the affaires of a bank for the reason of paying off its creditors in order of their preference and distributing what is left to the shareholders. Article 1 of Ordinance No 3 of 17/4/90 states that the rules of liquidation of banks are different from those of the ordinary laws. The principal distinguishing element between the rules for liquidation of a bank and that of ordinary companies is the fact that the liquidation of a bank cannot be ordered by a court, this is because Article 1 of law No 3 of 27/4/90 specifically prescribes that liquidations must be voluntary

In practice a bank goes into liquidation when its members by a resolution agree that the bank be wound up. The resolution winding up the bank also appoints a liquidator for the bank. Our banking law in Cameroonian terminology uses liquidation synonymously with the winding up and have varied a far reaching consequences.

The most important of these is the insulation of the bank under liquidation from all legal actions by creditors and third parties. By Article 3 of ordinance No 90/005 of19/9/90 all suits and actions pending against a bank in liquidation cease to exist against the bank on the appointment of a liquidator and lie instead against the liquidator.
It may be recalled that the banks are destroyed by corrupt officials who give out unsecured loans to friends , family members and political associates.

The relevant laws on liquidation appear to be directed at forestalling actions by creditors to recover from the banks in liquidation. Thus ,Article 59 of Law No 08/335 of 12/05/80 puts a limitation of 4 months from date of liquidation from bringing claims to recover capital investments in a bank. Similarly, Article 3 of the Law of 19//09/90 provides for the delay of law suits against banks in liquidation in very wide forms. This law does not say when such actions may be recommenced; hence it is considered unjust.