Staying financially safe in 2012: your guide

Property Buyer

Specialist Property Buyer

It seems like each year brings another financial woe to the table, constraining income and making it harder to avoid the possibility of debt. However, with a fair and balanced approach to your money, you can keep away from any difficulties that lesser planning could force you to face.

Firstly, cut down on any impulse spending. If you’re hungry, don’t go food shopping. If you’re off on a night out, or heading to a party, don’t go to a clothing store. These will usually lead you to buy there and then for things with little long term value. It may even be worth taking out your maximum spend in cash and leaving your cards at home.

Similarly, keep a budget spreadsheet and stick to it. You can measure out how much you can save, put towards bills and other things that you’re struggling with, and generally plan for a better financial future. The best bit is that you’ll be able to see how much you’re saving yourself for a good time. It’s not all bad if you plan properly!

However, if you’re really struggling to get out of serious debts and you have assets, it may be best to do away with them and downsize. For example, if you sell your house quickly through a specialist property buyer, you can pay off bills and move forward from there, renting until you feel confident enough to get back on the property ladder.

Obviously, throughout this process, it’s worth staying away from credit cards, especially for more menial purchases like food shopping. It will only serve to create a larger interest payment, should you not be able to get on top of the minimum bill. If you can, stick to debit cards for as much as possible and cut up credit cards if you can’t trust yourself to stay away from them.

Whatever your approach, it’s best to find what works for you. Remember that charities like Citizens Advice and Credit Action are on hand to help, should you need further guidance to match your personal circumstances.

U.K. Government should expect the De-globalization of finance to stay for a longer time


De-Globalization of Finance

The financial system worldwide is tending towards a more nationalistic one. The financial crisis aided this and also showed how much leverage the banks had. In the two decades that led to the European financial crisis, the national borders became more and more insignificant. The taxpayers back home supported the banks thus making it clear that nationality did not hold any significance.

Three years ago, the mass bailout of banks was forced on Western taxpayers. Regulators and the government have now encouraged the Western lenders to retreat.  Barclays Capital, the leading British investment bank declared that in mid-2011 European lenders had assets worth $1.2 trillion in the European markets. This amount was twice that of the amount seven years ago. The parent bank’s funding and capital support majority of these assets. The scarce capital and high funding costs make the retreat almost inevitable.

European banks have also put under consideration the pulling back of lending in dollars. Dollars were mostly borrowed from the U.S. money market funds and this business became too risky ever since the U.S. investors disappeared last year from Europe.

De-globalization is likely to be caused by the regulations post the financial crisis. Banks in Europe that are short of capital have sold their foreign businesses. On the recommendation of the Independent Commission on Banking, the U.K. government has decided to ring-fence the domestic retail banking operations.  The latest stress tests by U.S. have resulted in punishing major U.S. lenders with large European operations by making it essential for them to be able to withstand a eurozone meltdown.

Even the Government wants its financial institutions to focus their efforts in their own country. Politicians have also started stressing on the need for lending to local small consumers and businesses as they do not find global financing advantageous.

Commerzbank announced that it would restrict lending only to Germany and Poland. Orders have limited Austrian banks to serve only the central and Eastern Europe. Few European lenders have been forced to buy bonds of their home government. According to predictions by The Institute for International Finance, the net capital flows to emerging markets in this year will see a fall by approximately a fifth to $746 billion. This fall is expected to hinder economic growth by making credit even more costly.

Despite all these, credit can still flow freely between the developed countries. The Eurozone which is the most ambitious cross-border financial venture is still in a good shape. Brazil is one of the few countries that have explicit national capital controls as it was wary of attracting excess foreign money and not of lending it. The Western Governments have for a long time, adhered to the principles of liberalization and globalization believing that efficient allocation of resources and growth would be possible by encouraging free markets. The discrepancies in the existing global financial system could lead to a heavy destruction, perhaps even more detrimental than the after effects of the European financial crisis.

Easy guide to credit card bad credit

Credit Card

Credit Card Bad Credit

Having a perfect credit history has becomes one of the prior preferences of credit card companies nowadays which has made them choosey about their clients. Bad credit is a stain on your credit record which makes it difficult for you to apply for any loans or even try for a standard credit card company. These credit card firms conduct a check on your credit record each time you submit an application for a new credit card. People like self employees, part time workers and those with low incomes usually get low score by these companies and thus are unable to access credit.

But the question is should people with low score or bad credit history should count them out of the list of getting a credit card? Here is the answer- for such people with credit card bad credit score, bad-credit credit cards come as a ray of hope. These cards are focused over people with poor score or bad credit record allowing them to project their ability to manage debt to the lenders. Using bad credit cards regularly and paying your debt in time can boost your rating for credit after every six months of time. These cards are also known as second chance credit cards are they offer you a second opportunity to get a fair deal on credits. Once your credit rating is rebuilt, you can easily apply for low interest rates mainstream credit cards and enjoy living and debt free life. Making payments regularly and choosing the correct bad credit card for you is a good decision towards a good credit record.

But nothing comes without any cost not even bad credit card. Bad credit or security-credit credit cards are sensible means of repairing a bad credit record and become eligible to apply for in a credit card company, but the interest rates of such cards are very high with only a few interest free schemes available. So it is advisable not to lend money over bad-credit credit card or pay the bill completely otherwise you will end up in a vicious circle of debts. There are a number of companies offering bad credit cards on comparatively low interest rates than others but do complete research before taking any. Make sure that the issuer of your bad credit card reports to any credit bureau so that the payments you make does count for something and soon you are able to re-establish your credit. Apart for this, taking loan for a bank is another way of clearing your debts but it is quiet time taking.

Bad credit cards are tailored especially for the people without an optimum credit to improve and build up their credit score. Not only this, when shopping online or making a huge payment, use of credit card is beneficial. So if you are one in those with credit card bad credit, make use of bad credit cards and take your credit history to an alley towards mainstream credit card.

Student loan consolidation companies – areas of consideration before selecting

Student loan

Student Loan

It becomes a big burden to have multiple student loans. Already our lives have so many expenses that these loans get very hard to pay for. Transportation expenses, medical bills, food, accommodation, and the loans get very hard for a student to manage at a single time every month. Well, students who make to college are surely grateful that they got this big chance and it becomes a blessing to have access to various loans in order to pay for that education. However, eventually these loans get harder and harder to pay off.

The best way to reduce all of this tension and cut down the monthly loan payments is to find a student loan consolidation company and get all your debt consolidated. This becomes the ideal solution especially when a student carries more than just a single loan. When a student consolidates the debts; the monthly payments are reduced, the interest is reduced, and payback time period also stretches. Well, in order to this you need to first consider taking consolidation from a federal program or a private lender; which option is better? If you know how it works, this decision will be really easy to make. Basically, if you have private loans on your head then go with private consolidation company and if you have federal student loans such as Federal Perkins, HEAL loan, PLUS, etc then go with a federal consolidation company.

Well, first of all you will need to some thorough research and pick up around five or six best student loan consolidation companies available to you. As with getting a job, buying a car, or going on a date; it is always better to choose from all the options available, the same thing goes for loan consolidation companies as well. Soon enough those picks you make will cut down to a smaller number. However, start off with choosing as many reputable student loan consolidation companies as you can.

Start shortening your list down till only three companies are left. Now, get online and use all the sources to research on these left out options. See how long these companies have been dealing with student loan consolidation, low advertised rates, and also their terms and conditions. Always see whether that company seems to be the right choice for you or not. Lastly, apply to all of these three companies and see what all of them offer; pick the best student loan consolidation program offered.