http://eratostenes.info/index.php/ Articles at Eratostenes.info - Free Article Directory en-us http://eratostenes.info/index.php/finance/debt/debt-stress-testing-in-australia.html http://eratostenes.info/index.php/finance/debt/debt-stress-testing-in-australia.html Fri, 19 Feb 2010 18:19:36 -0800
To "stress test" one's finances, it is necessary to gather an extremely high quantity of financial detail, especially in regards to one's earnings, the value of one's property, and the nature of their investments. This data is then fed into a complex series of computer models, which determines the borrower's ability to repay the debt while maintaining a modest standard of living in the event of a financial disaster. Since any small error can lead to an erroneous simulation during the test, accuracy and complete openness is required. While some borrowers object to such high levels of financial openness, hiding assets or lying about them tends to work against the borrower during the simulation. If the simulation's accuracy is in doubt, then it is useless for the purpose of lowering loan payments, and the borrower will not receive the full benefits.

The current shakiness in the mortgage market has led many Melbourne mortgage brokers to require or at least highly suggest that these tests take place. This is because if a borrower successfully passes the test, then the lender knows that the loan is a very low risk and thus worth taking. They may not only award the borrower with lower fees, but they may be able to find a loan that more closely suits the borrower's finances, due to the fact that they now know those finances in detail. Thus, having a stress test is one of the smartest things a Melbourne borrower can do.
]]> http://eratostenes.info/index.php/finance/debt/what-do-you-have-in-your-house.html http://eratostenes.info/index.php/finance/debt/what-do-you-have-in-your-house.html Fri, 12 Feb 2010 22:25:41 -0800
However, one expert believes that the key to weathering the storm may already be in your possession. Donna Every, author of What Do You Have in Your House? from Tate Publishing (www.donnaevery.com) has learned that pulling from the hard assets already in your home and the often overlooked assets inside yourself can help keep the ship afloat.

"When times get tough, some people feel it is their lot to sit back and accept their ‘fate.' However, I have seen the best that human potential has to offer, so I don't accept that - and neither should anyone else," said Every, an MBA who is also a former Ernst & Young chartered accountant. "We can make things happen because we all have some gift or ability, some skill or some resource that we can use to transform our financial situation. All we need is the faith and determination to make it happen."

Every's tips for getting through the tough times include:

• Liquidate dormant assets - With the massive wealth accumulated in America, most people have possessions or property of value sitting in their attics or garages. With the advent of craigslist and eBay as online sales resources, many of these dormant assets can be turned into cash.

• Mine overlooked assets - Everyone has something they do well, and if they do it well enough, it's not much more difficult to market it. Some people can sew and cook, while others are artists or musicians. In most households, just making a little extra money every month can make all the difference, so part-time jobs doing something you do well can help fill the gap. For example, one woman I met in Barbados couldn't make ends meet with her day job as a maid, so on the weekends, she opened a mini-restaurant off the side of her house. She'd prepare meals during her off time during the week, and sell them to her neighbors on Friday and Saturday.

• Keep the faith - Belief in yourself, your motivation and your abilities is a far better path to tread than to give in to despair when the tables turn against you. Meeting challenges head on can not only save the day - they can also change your life.

"Our financial situation is a result of the choices we make," she added. "Choices made out of fear and anxiety are never the right ones. We need to make sure that we are making the best possible choices." ]]> http://eratostenes.info/index.php/finance/debt/consumer-credit-counselling.html http://eratostenes.info/index.php/finance/debt/consumer-credit-counselling.html Tue, 27 Oct 2009 13:47:44 -0700
You might decide to be your own personal credit counselor and manage your own debt. However, most consumer credit counselors typically have more power when dealing with creditors. The counselor can often obtain lower payments and a reduced interest rate for you. These both help facilitate debt repayment. Not only that but the counselor is also trained in educating the consumer. After all, most consumers need to learn skills in debt management to keep themselves from getting into the same situation again.

You also should determine from the credit counselor what affect their services may have on your credit. Some agencies will report that you have sought a debt management plan to your creditors especially if you want them to seek lower interest rates from your creditors.

Your credit counselor will have the knowledge of perhaps offer you some choices as to a solution for your debt problems. If you find your counselor only pushing one solution without even considering others, be leery of them.

If you seek a debt management plan through credit counseling, the credit counselor will be responsible for managing your accounts. Again, this is another reason for being picky when selecting an agency. Should your payments not be made in a timely manner, then your credit will be adversely affected. If this happens multiple times, your plan will be canceled. Your creditor then is free to raise your interest rates back to their previously high levels. In general, credit counseling is an excellent solution for those experiencing debt problems and definitely a wiser choice than resorting to bankruptcy. ]]> http://eratostenes.info/index.php/finance/debt/how-bankruptcy-affects-your-job-and-career.html http://eratostenes.info/index.php/finance/debt/how-bankruptcy-affects-your-job-and-career.html Thu, 15 Oct 2009 23:30:19 -0700
In spite of the global recession, there has been a marked increase in organisations that are checking out the credit reports of prospective employees. If you have filed for bankruptcy, these employers may not want to employ you, particularly if they have taken the time to perform such checks. The reason for this is that such employers are of the view that reliability and creditworthiness go hand in hand. They tend to view how you handle things personally as a good sign of how you would handle their company's assets. They may therefore be of the opinion that people who are unable to take responsibility for their financial affairs may end up blaming other people for their own failings and mistakes. Basically, these employers will want to be assured that you will not be a high risk investment if you are hired. So even though there are laws that forbid an employer from discriminating against a prospective employee solely on the basis that the applicant has declared bankruptcy in the past, the possibility exists that the employer may choose to look elsewhere. However, there are also many employers that do not do any such checks, and don't care whether you've filed for bankruptcy in the past.

Now you might be thinking that filing for bankruptcy rules you out of the running for jobs that require background checks. Not necessarily. You should never underestimate or overlook the ability of employers to be sympathetic. They are human after all. If the only negative thing on your credit file is the bankruptcy, then you stand a much better chance than if you have lots of other negative things in your report. Having bad credit is bad, but personal bankruptcy IS a solution. Filing for bankruptcy demonstrates that you identified a problem in your financial life and took steps to rectify it. Bankruptcy hasn't ruined your employability. It has made landing your dream job more difficult, but by no means impossible.

So the question is, what should you do if want to, or you have recently applied for a new job that requires background checks after recently filing for bankruptcy? In the case of jobs where your background will be checked out, be upfront and honest about the circumstances of your bankruptcy and what led to it. Don't' ignore it, and don't make excuses for it or try to lie about it. It's there in black and white. Secondly, you will need to sell yourself harder to convince the employer that they are not taking a high risk by employing you. You can only do this by showing that personal bankruptcy has made you wiser, more responsible, and this time, much more determined to succeed. ]]> http://eratostenes.info/index.php/finance/debt/how-you-can-get-a-mortgage-after-bankruptcy.html http://eratostenes.info/index.php/finance/debt/how-you-can-get-a-mortgage-after-bankruptcy.html Tue, 06 Oct 2009 18:19:52 -0700
In such a grim scenario, you may be feeling that owning your own home is now completely out of reach. Well, that's where you're wrong. The truth is that it is far easier to obtain a mortgage after bankruptcy than if you simply have bad credit.

This might sound incredible but it is borne out by the facts. There are actual a large number of lenders on the market who actually have programs specifically designed for people who have recently emerged from bankruptcy, and if you do enough searching online you will find them easily. Most lenders realise that the global recession has been harsh, and that people who have gone through bankruptcy are likely to be more responsible.

If you want to get a bankruptcy mortgage, the key is to be patient. What the experts recommend is that you wait at least 2 years before you apply for a bankruptcy mortgage. Generally, lenders have an unwritten rule for loan applications after bankruptcy. The waiting period is known to be two years. This time can be spent building up your credit scores. This is the time to create a realistic budget for yourself that you will stick to, and analyze your credit report from the major credit reporting agencies like Experian to remove all the inaccuracies and errors, because they do contain errors from time to time. You should also check your credit report regularly. Needless to say, you will need to pay your bills on time. You cannot be late on a single bill. If you want to rebuild your financial life, you need to have perfect credit. These bills include not just any new credit card that you take out after bankruptcy, but also your utility bills. Everything gets reported. All of this will work together to enhance your credit report and improve your financial standing.

Now, once you get a new lease of financial life, may not be able to resist the urge to use your new found credit to get things you have been going without during your bankruptcy. This is where you'll need to be disciplined and exercise common sense. You'll need to curb your consumerism. How can you ever forget your terrible bankruptcy experience? Basically, these mortgage lenders want to be reassured that you have learned significant financial lessons from your bankruptcy, and that you will be able to afford your mortgage payments. If you have obtained too many other financial obligations, they will simply draw the conclusion that you are have not learned your lesson at all, and are going to fall into the same credit trap again.

Although it is not impossible to get a mortgage after bankruptcy sooner than the 2 years from the time of discharge, it is generally far more difficult than waiting for the two year period to pass before you do so. Nevertheless if you want to try, you will need to have an almost flawless and responsible credit history since your bankruptcy discharge. This is something that you can achieve as long as the majority of your payments have been reported to the credit bureau as having been paid on time since the time of your bankruptcy discharge. In addition, if you have a larger than normal down payment for the mortgage, that may be enough to help you get approved within the two year period.

]]> http://eratostenes.info/index.php/finance/debt/good-debt-vs-bad-debt.html http://eratostenes.info/index.php/finance/debt/good-debt-vs-bad-debt.html Thu, 01 Oct 2009 21:06:16 -0700
Perhaps, almost all persons above 21 know what it means to be in debt. You may took a loan on a car or a house that you always wanted. And that is truly acceptable. But what separates a good debt from a bad debt is how one manages the debt. Debt management is the critical ingredient.
A good debt advice is to bear in mind that whenever we take out a loan or use our credit cards we inadvertently ‘buy' money. A debt is similar to buying 75 pence for £1. This is because we pay interests for the amount we owe later.

What is a Good Debt?

Good debt simply refers to people have debts but they do have enough money to pay their debt. They have money in their banks so do not really need to get in debt in order to live. They simply use credit for purchases like using credit card to buy new clothes or new appliances. They do not have an outstanding debt because they can afford to pay the money owed.

Those who have ‘good debt' can pay anytime they want to. Some mainly take up a loan or a credit just to build good credit standing. A good credit rating is necessary if one wants to apply for more important loans such as for a house or car.

What is Bad Debt

Bad debt refers to debts that people use to get themselves out of a bind or to fix money problems. They do not look for other ways to raise money like working overtime or cutting back on unnecessary expenses. Instead, the person would rather live on credit instead of savings. They do not prepare a plan on how to be out of debt.

Switching from bad to good debt is not easy but it is possible. Start with the little things first like creating a monthly budget so you know which aspect you can improve on such as paying your monthly bills on time or letting go of unnecessary expenses.
]]> http://eratostenes.info/index.php/finance/debt/debt-advice-is-always-at-hand.html http://eratostenes.info/index.php/finance/debt/debt-advice-is-always-at-hand.html Thu, 01 Oct 2009 20:42:45 -0700
Once acquiring a credit card, people soon max them out and or become over drawn. This soon leads many banks to chase people for payments in order to pay off their credit cards or many loans. Furthermore with the many rising interest rates due to the credit crunch, it is impossible to relieve ones self from their debt as any income or money they can provide to pay off their debt can only effectively pay off their added interest. It is extremely sad when people get into a situation like this and even sadder when they don't approach anybody for help. Finding out about debt advice is very easy and can be extremely helpful regarding a person's debt situation. They can offer a range of ideas to help pay off your debts focusing on how to make it easier and less complicated. With debt advice there are many options like consolidation, debt management and the most unknown type of management Individual Voluntary Arrangement (IVA). Debt advice teams will be there to help you every step of the way, and assist you when talking to legal teams and institutions when trying to strike a deal. Furthermore they will individually research your case and look at what is best for you. With many of the debt advice options, you will find that your many scattered debts can become just one whole debt, which can then result in a much lower interest rate. As a result debt advise will make your paying off of debts a lot faster, helping you to over come the strain of hanging debts and look forward to the future. ]]> http://eratostenes.info/index.php/finance/debt/how-debt-consolidation-really-works.html http://eratostenes.info/index.php/finance/debt/how-debt-consolidation-really-works.html Fri, 25 Sep 2009 13:51:36 -0700 debt consolidation outlets offering their services to people who feel as though they are drowning in debt. For some, these services can be a huge help in lowering your monthly payments and give you some breathing room, but you need to do your homework.

The way debt consolidation works is the company you choose to work with will contact all of your creditors and work out a monthly payment plan with them. In some cases, the creditor will lower the interest rate or agree to accept a lower payoff amount than what you actually owe. Once the consolidator has negotiated repayment plans, you make one monthly payment to the consolidator, and your debts get paid off.

In some cases, you will find that with lower interest rates and negotiated payoff figures, you end up paying less per month in one payment than you were previously paying out to all your different credit card companies and other creditors. Beware, however, that some consolidators charge large fees, so while your monthly outlay may be significantly reduced, you may end up paying more in the long run.

Another way to consolidate your debt is through a home equity loan. Borrowing money against your home allows you to make one monthly payment to your lender as opposed to many smaller payments to various credit card companies or other creditors. In most cases, the interest rate on a home equity loan will be much less than the high percentage credit card companies charge, and you may qualify for tax deductions.

Personal loans are a little more difficult to obtain, especially if you are carrying a large amount of debt, but you can usually find the interest rates will be lower than many credit card companies. Taking a personal loan to consolidate debt can help lower your monthly payment, allowing you to pay more towards your debt or freeing up some money for you to use towards other things.

Another option to consider in an effort to consolidate is to do a credit card transfer. This option requires you to open up another credit card account and transfer all of your smaller credit card balances to one card. Many credit card companies offer special deals to new card holders on balance transfers. You may get 6 months interest free or a significantly reduced interest rate to transfer all of your balances. This is a great way to lower your interest rate and your monthly payments, but it is a short term solution. The no or low interest offer is generally a limited time only offer, and when the introductory offer expires, you find yourself paying a much higher interest rate.

Always look at all of your options, and consult with various companies. Ask about all fees associated with debt consolidation and how the companies want them paid (most just roll them into your monthly payment). For many people, debt consolidation is the solution to an overwhelming debt problem. ]]> http://eratostenes.info/index.php/finance/debt/how-debt-consolidation-works.html http://eratostenes.info/index.php/finance/debt/how-debt-consolidation-works.html Wed, 16 Sep 2009 16:10:58 -0700 debt consolidation outlets offering their services to people who feel as though they are drowning in debt. For some, these services can be a huge help in lowering your monthly payments and give you some breathing room, but you need to do your homework.

The way debt consolidation works is the company you choose to work with will contact all of your creditors and work out a monthly payment plan with them. In some cases, the creditor will lower the interest rate or agree to accept a lower payoff amount than what you actually owe. Once the consolidator has negotiated repayment plans, you make one monthly payment to the consolidator, and your debts get paid off.

In some cases, you will find that with lower interest rates and negotiated payoff figures, you end up paying less per month in one payment than you were previously paying out to all your different credit card companies and other creditors. Beware, however, that some consolidators charge large fees, so while your monthly outlay may be significantly reduced, you may end up paying more in the long run.

Another way to consolidate your debt is through a home equity loan. Borrowing money against your home allows you to make one monthly payment to your lender as opposed to many smaller payments to various credit card companies or other creditors. In most cases, the interest rate on a home equity loan will be much less than the high percentage credit card companies charge, and you may qualify for tax deductions.

Personal loans are a little more difficult to obtain, especially if you are carrying a large amount of debt, but you can usually find the interest rates will be lower than many credit card companies. Taking a personal loan to consolidate debt can help lower your monthly payment, allowing you to pay more towards your debt or freeing up some money for you to use towards other things.

Another option to consider in an effort to consolidate is to do a credit card transfer. This option requires you to open up another credit card account and transfer all of your smaller credit card balances to one card. Many credit card companies offer special deals to new card holders on balance transfers. You may get 6 months interest free or a significantly reduced interest rate to transfer all of your balances. This is a great way to lower your interest rate and your monthly payments, but it is a short term solution. The no or low interest offer is generally a limited time only offer, and when the introductory offer expires, you find yourself paying a much higher interest rate.

Always look at all of your options, and consult with various companies. Ask about all fees associated with debt consolidation and how the companies want them paid (most just roll them into your monthly payment). For many people, debt consolidation is the solution to an overwhelming debt problem. ]]> http://eratostenes.info/index.php/finance/debt/debt-collectors-under-hammer.html http://eratostenes.info/index.php/finance/debt/debt-collectors-under-hammer.html Wed, 16 Sep 2009 04:52:34 -0700
The troubles begin when, for one reason or another, debts cannot be repaid. This may happen to a country as exemplified recently by Iceland, to organisations, for instance the collapse of Northern Rock and General Motors, and to individuals. In fact the number of individuals finding themselves in this position is increasing rapidly.

When organisations and individuals stop repaying their debts as originally agreed, then the often next step is for the creditors to call in the debt collectors. If this should happen to you, then before you do anything else you should consider obtaining debt advice.

Debt collectors use a range of tactics in order to recover money for their clients, and many people find that dealing with their constant letters and phone calls is extremely stressful. Despite tight regulation on the actions that debt recovery companies are allowed, these organisations often use a variety of tricks in order to circumvent them.

For instance, they may attempt to increase the pressure on the debtor by contacting him or her at work and insisting on discussing the situation in front of work colleagues thus creating a highly embarrassing situation. Sometimes they might contact debtors late in the evening and make frequent calls. It has even been known for debt collectors to purposely contact neighbours of the debtor, again with the aim of creating embarrassment. These kinds of activities are against the law, and should be reported to the Credit Services Association. Ultimately debts must be repaid, but there is no reason to allow oneself to be subjected to these types of practices. ]]>