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Using Loans for College to Pay for Your Tuition - Explore Your Financial Options

The prospect of attending college is an exciting one that many undergraduates look forward to. However, if you are worried that you cannot afford an education then you are certainly not alone as many have similar thoughts. Fortunately, there are several financing options that you can leverage to pay for your tuition.

Take advantage of grants and scholarships

If you have received top marks from your school then you may be able to qualify for scholarships which can be used towards your tuition fees. Many universities also offer grants that students can use for college related expenses. In a sense this is essentially free money that can drastically reduce your overall costs and help put you through college.

Pull out federal student loans

Another alternative is to apply for a student loan such as a Federal Perkins Loan. These are specifically designed for undergraduates and offer financial flexibility for those students with financial burdens. To see what you qualify for you will need to submit a Free Application for Federal Student Aid (FAFSA) and they will contact you on what your options are.

Other financing options

If the above choices are still not sufficient to cover tuition costs then are there are still other options available. You can contact banks which specialize in loans for college but keep in mind that private lenders tend to be stricter in the selection process. So what you can do is leverage the credit of one of your parents by having them co-sign a loan for you.

If you do not mind rolling up your sleeves then work study programs are available which allow you to earn money through part time employment. The amount you get paid will depend on what you are awarded and how many hours you work. Before you completely rule out a certain college as too expensive be sure to consider these financing options.

The 4 Reasons Not to Use Business Credit Services

What is the roll of business credit services? Many small business owners today are still using their personal credit to finance their business. Although it is quite common, it's truly a bad idea. This is evidenced most recently in the last two years as the damage of the economic downturn is finally becoming realized. Many people were wiped out completely and businesses shut down, and much of this could've been avoided if they had separated their business from their personal assets.

This article is going talk about the importance of having business credit, but what to look out for with business credit services. Business today presents many challenges, and most of these challenges can be easily overcome with proper access to inexpensive capital. Mastering business finance is crucial if you plan to own and operate a business in today's environment.

The value of having perfect is business credit established for your company is tremendous. Entrepreneurs that understand corporate finance always have resources available to them to execute their business visions with success. The small business administration has stated numerous times their research shows the number one reason businesses fail is to lack of capital.

It's Expensive, Business credit Services typically runs between $2500 and $5000. Many services promise and guarantee credit at the end of the coaching cycle assuming that you have completed the necessary tasks and items that they require. The problem with this is that you can easily find reasons of why you did not complete a simple task that led to preventing them from accomplishing the credit that they originally promised.

They know in advance that you will buy off on the guarantee, and additionally they know that you will not execute the checklist that they expect for you to complete. The other problem is when the services who are charging huge upfront fees because buyers are hooked into the idea of having guaranteed $300,000 in business credit line, make it sound completely hands-off in the beginning.

The services represent there will be very little work on your part, "a concierge service" on your part, and they will handle everything. In the first week and a few e-mails later, you will soon learn the task list that they have issued is not is simple is a made it seem. The challenge becomes, when they have your money you are in a difficult spot and are now working for them. The truth is, building business credit will require you to put in some effort. It's impossible for them to open up your bank account in some of the other requirements such as business license and other confidential based conditions needed.

Avoid business credit services that charge HUGE upfront fees. If you think about it, what reason do they still have to continue working in your behalf after you've paid them $3000? Is it to protect their great reputation? I'm not saying that all services will do this, but there is a point where the motivation changes. It is obvious that business credit is a valuable service, is talked about often with the biggest financial players out there. All great business success stories truly had an element of how they mastered corporate finance to eventually execute their ideas.

The critical part of entire process is getting your business compliant and meeting the critical conditions that a business lender will require. Many of these items are simple tasks such is having a 411 listing for your business, and having a business line dedicated to your business. Again, these are tasks you will need to do on your own. In addition, you will need to open a series of reporting accounts with small vendors such as office Max and Staples; this is how the process begins.

I'm not saying that it's easy, but there is a point where taking the effort to save money or utilizing a system that can accomplish these tasks with ease and track the progress in a much more efficient way will serve you much better and ensure your success. Furthermore, having control the wheel is the number one complaint of business credit clients.

Losing control of the process is not a good position to be in, especially a component that is one of the most important aspects of any business. Again, this does not require a huge expense on the front end. Find a service that is good at getting your business compliant utilizing an online system integrated with Dun & Bradstreet and Experian Smart Business including the 20 item check list and you are 90% there.

Test their loyalty. A great way to test the corporate credit service is to ask them, at what stage will I began getting credit? Get them to tell you exactly what stage they will position your company to get the amount of credit you're looking for, and then use that information back at them. They will likely respond and say... "once you have a 75+ Paydex score and profiles with the major business reporting per bureaus. They may also require 10 to 15 open trade lines are reporting perfectly.

At this stage you can inform them that you already have a company that meets these criteria, and carefully test their response. You can also imply that you are interested in moving forward with out paying the fee and would just like to obtain financing now. Why not, that's the whole reason you were potentially signing up correct? It will be easy to determine where their motivation is. If the service is hesitant, then they are not true lenders who earn commissions and are far more interested in upfront fees rather than loan fees.

A true lender would be a static to take on this file especially with a strong rating with the credit already established. You will easily be able to spot if they're angling for a fee or positioning for a loan. In addition, this is insight on you will be treated six months or year from now once they have your money.

Do your homework, it's out there. Many people believe that business credit services have some magic trick up their sleeve that will mysteriously get the banks to loan credit to the business name. Although this is true, the process of making it happen is a proven formula and easily available.

If you're going to hand somebody thousands of dollars, be aware of the tasks they are going to require. Many people pay large upfront fees only to be bombarded with requirements and tasks that could've been accomplished with a little research. Remember it's about getting compliant and building a small credit foundation with about 8 to 10 trade lines reporting.

By properly doing your homework and research, you can save thousands of dollars. Information on how to prepare your company for business credit is available on the Internet with proper research. At the end of the day, it's the banks that are making these loans, and research with business banks will tell you exactly what they require. I'm not implying that this is going to be easy however,for the amount of money that many companies charge, it's a skill worth understanding, and a skill worth having, so why not do the homework and gain the knowledge while saving the money.

Mastering corporate finance is a passion that's invaluable for business entrepreneurs who use credits... learn it.

There are companies that do the compliance side and establish the critical 10 to 15 trade lines for a fraction of the cost. Being locked into the entire process with one company is not the best choice.

Once your corporate credit is built, your business will have unlimited loan options and plethora of inexpensive lending resources from institutions everywhere, that you can count on.

Personal Finance: Credit Agencies Refused Access to Information About Student Loans

These days, when you apply for a mortgage, loan or other form of credit, the lending industry will automatically scrutinise your personal credit history. In practice, you hardly need to tell them anything as within a fraction of a second, the lenders computers will lock into your credit file held by any one of the big three credit agencies; Experian, Callcredit or Equifax And you'll be amazed what they know about your finances!

For many years now banks, building societies and other lenders have been providing information about your finances to the credit agencies. They know about every credit applications you've made, the occasions you've been late or missed paying a loan, mortgage or credit card, the balances on your loans and credit cards and whether you just pay off the minimum each month - even your credit limits! The agencies also accumulated lots of other information about you provided by public records, the voters' roll and the public register of court actions where all county court judgements are recorded. Their computers then statistically analyse all this information and assess your application. So in this context, the credit industry argues that the more information they have about you, the more accurately lenders can make lending decisions.

Yet within this mass of information, there is one notable omission. Despite representations to the government, information about student loans and their repayment history's, is not provided to the credit agencies. The data is refused because student loans are a debt to the taxpayer, not a commercial business.

Prior to September 1998, graduates repaid their student loans by mortgage style direct debits collected once the graduate started earning over £15,000. But more than 59,000 of graduates from before 1998 graduates are understood to be in payment arrears to the tune, on average, of around £2,750 per graduate.

After September 1998, the system of collecting student loans changed. These days, repayments are deducted directly from salaries by employers along with national insurance and income tax. This method is far more efficient and avoids the possibility of bad debts.

The credit industry argues that it needs the information on student loans as they can represent a significant strain on the graduates' finances - especially following the introduction of top-up fees which results in the average student loans being much larger. These loans are repaid at the rate of 9% of the graduates' income in excess of £15,000 and can represent a significant drain on their monthly income.

Therefore, to fully assess graduates' financial situation the credit industry argues that it needs student loan information. The Association Consumer Credit Counselling Service agrees. A spokes person said, "Knowing whether a young person has a student loan and whether it is being paid back, is useful."

Yet despite the pressure to share its information, the Department for Education and Skills remains steadfast in its decision to refuse permission to the Student Loan Company to provide information to the commercial sector.

Even the Citizens Advice Bureau wants this decision changed arguing that lenders need information on student loans to help ensure that graduates avoid taking on so much debt that they can't maintain their repayments.

But for now at least, the situation remains. The credit industry cannot obtain any history about student loans.

My Online Income System - A Plan That Works

In the past, you might never have considered the thought of starting your own business.  You were comfortable, things were going well.  You didn't have a real problem meeting all of your obligations, and in fact you were able to save little bit.  Then, seemingly overnight, things changed.  They not only changed, they changed drastically. It started with threatened layoffs.  Then the job was lost.  Next, there were bills that you had to lay aside until next month.  You never received collection calls in the past but now they are coming in almost every day.

This scenario is being repeated millions of times by people just like you.  Some are hitting the streets trying to find a job.  That is admirable, and in some places the work is being rewarded with results.  Often times, however, there are no jobs available that pay the kind of income you received in the past.  Cash is at an all time low, trouble seems like it is here to stay. 

Many people are finding help is as close as their computer screen.  The Internet is an amazing tool.  There are millions of pieces of information ready for you to grasp.  You only need a few to get yourself going on the road to success with your own online business.  There are free trials available so there is no money necessary at the outset.  You can get started and begin watching cash roll in.  Before you know it, you will have returns you have difficulty imagining right now. 

The My Online Income System is a plan that you can put to work and it will do several things for you while you are in the process.  Just by getting started you will find the following:

  • Studying the plan will give you a sense of accomplishment.  It is important for your own self-esteem to get started so the sense of accomplishment will return to your own mind.
  • The system is easy to follow so you will learn quickly.  Knowing that your work will add up to results is satisfying.
  • Knowing there are many people who have become successful with the program will encourage your own determination.

There are not many programs that bring their own sense of reward even before you see dollars begin to roll in.  Obviously, it is money you need, but the sense of accomplishment and progress is vitally important to your own sense of purpose and well-being.  Get started!

Another important thing you will notice right away is the positive, determined and helpful attitude of the people offering the program.  The system will work for you because every possible assistance is offered to you every step of the way.  The only way you will fail with this program is if you fail to work the program.  Doing nothing is your enemy.  Putting it off is your foe.  Continuing to worry about your situation combined with inactivity will surely make your situation worse. 

Why should you believe this system will work for you?  Here are four reasons you can take to heart:

  • Other people just like you have made it work for themselves.
  • You don't have to be a computer or business expert to make it happen.
  • The field is wide open just waiting for you to join.
  • The system has been proven again and again.

This is a system that works and will build you up from the inside while you are learning to put the program to work for you on the outside!

Refinancing When You Don't Have Much Money

It is often the people that are struggling financially that have a real need for mortgage refinance and could benefit most from it. While this is true, refinancing can be quite costly, as much as three to six percent of the principal balance on your home, which will likely be in the thousands of dollars. This is not something that a lot of people can afford, so what do you do when you don't have a lot of money but you would like to refinance?

Mortgage Refinance on a Budget

It's tough when you know that you need to make a change but you don't have the money to make it happen. Mortgage refinance can cost a lot of money and when you don't have a lot of money the fees associated with it can seem astronomical.

Luckily, lenders have become wise to the fact that those that need to refinance most don't have this sort of money on hand. There are a few great programs out there that will help you refinance without having to pay this amount of cash up front. The programs are an awesome opportunity for people to refinance who may not have had the opportunity to mortgage refinance otherwise.

One option that you may have when you don't have the funds to pay your closing costs is a no closing cost refinance. This is something that many people are taking advantage of because you can refinance your home and just have the closing costs rolled into the financed amount. So, if you were refinancing a loan of $90,000 and your closing costs were $4,000 you would have a total loan of $94,000. This sort of program allows for you to still pay those fees but you don't have to pay them up front. This is a great opportunity to get the lower interest rate or more stable mortgage that you need. While this is called a no closing cost loan, you should be aware that you are still paying them, just not up front. You should also be aware that you are paying more on closing costs because you are also paying interest on the amount that was rolled into the principal balance.

Another option that you may have when you need mortgage refinance with no money out of pocket is the opportunity to simply pay a slightly higher interest rate on the loan. So, if you were refinancing that $90,000 and you had the same $4,000 in closing costs, you would have been given a five percent interest rate in the previous example, but here you may now have a 5.5% interest to help compensate for the fact that you did not pay your closing costs.

These are both great options when you have very little in the way of funds to pay out for closing costs. While this is beneficial when you don't have any money, you should remember that you are still paying more than you would have otherwise because you are paying interest or more interest as a result of the funds being rolled into the principal balance.

How to Save Money From Your Personal Finances

It's getting harder and harder to find ways to save money when prices continue going up. Here are some tips to help you save money from your personal finances.

Save money on gas. Take public transportation or look for a carpool in your area. Walk or ride your bike if the destination is not too far away and you don't have a lot to carry. If you must drive, drive to consciously get better gas mileage. When you begin to accelerate, go slowly. Rushing away from stops causes your vehicle to consume a great deal of fuel. When you are stuck in stop and go traffic, leave a big space in front of you and keep rolling. Try not to come to a complete stop to get better gas mileage.

Help your personal finances by avoiding fees. Pay your bills on time so you never have to pay late charges. Don't purchase something unless you know you have the money in the bank to cover it so that your checks don't bounce and cost you money. Only use your bank's ATMs to avoid charges from other banks. Always check your bank statements, credit card statements and other bills to be sure that no mistakes were made and you are not being over charged.

Stop smoking and drinking alcohol to save money and improve your personal finances. Not only do you have to pay for alcohol and cigarettes, but your medical costs rise as well. You have to pay a higher premium for health insurance and life insurance. Most likely you will be unhealthier (if not now, then later on) and have more doctor visits. You will also have to purchase more medications, too.

Also, regular check-ups with the doctor have been shown to improve health and prevent future illnesses, decreasing the cost of healthcare. Regularly visiting the dentist will help you save money from your personal finances as well, preventing you from needing more costly dental care down the road.

Another one of the ways to save money is to implement games to motivate yourself to stop certain behaviors; like smoking, drinking or swearing. Every time you do so, pay a certain amount of money, a nickel, a quarter, a dollar, etc. Then put away all that money and save it for the future.

Try these ways to save money to help your personal finances today.

Money Matters

It's never too soon to teach your children about the value of and responsibility toward money. Here are some excellent activities to teach your children about finances, from your toddler who seems to want everything to your trendy teenager who won't do anything unless it's in style.

Just as bad habits are very hard to break, good habits that you teach children now will last a lifetime. If you have toddlers, now is the best time for Moms to teach them how to manage money. If you have older children don't worry...it's not too late. Instilling positive money values now will create a wonderful foundation for your little future investors.

Follow the Leader

It's a good idea to let your children accompany you to the bank and stores from the time they are infants so they can begin to understand the concept of money exchange. Explain to your toddlers, young children and teens exactly what you are doing and how much it costs. Allow them to see the exchange of money, checks, and credit cards between you and the merchants. Be careful to never make your children feel guilty about how much the bills cost, because that can cause damage to their self-esteem and self-worth. Try to explain each step from where you get the money, where you store it, and how you spend it so they'll know that it's a whole revolving process. Money management matters. Teach your children early so they can be wise about their finances.

Here Piggy, Piggy

At any given point during the day, you might see a new mother desperately prying coins from her 1-year-old's mouth. What this Mom doesn't realize is that maybe her child was eating the money because he had absolutely no idea what to do with it! We assume toddlers are just too young to understand money, but that's not the case. Children love animals, so why not give your toddler a piggy of his own? And, when your toddler picks up loose change off of the floor, he will instead come straight to Mommy so he can have the treat of putting it in his bank. Once he breaks the stage of putting coins into his mouth, encourage your child to independently 'feed' his Piggy Bank every day so the piggy can grow and be healthy and strong. When the bank fills up, reward your smart toddler's savings by taking it to the bank for dollar bills. Let your child buy a special treat that he's been looking forward to with his own money. There are even toys that emulate this process with pigs that sing when kids drop plastic coins into their backs for Moms that don't want their children to handle real money yet.

Treasure Hunt Time

This is a sure way to get children excited to learn about money matters. Save yourself time and stop breaking your back by constantly picking up coins from the floor, in the laundry room, beneath the sofa cushions, and everywhere else money disappears into. Instead of wearing yourself out, when the kids begin to look bored shout out, 'IT'S TREASURE HUNT TIME!!' If you feel up to it and have time, you can even come equipped with a bunch of scarves so they can dress up and pretend to be Pirates. Let your children know the safety rules of the Treasure Hunt (like, no crawling into the washing machine). Tell them they will be able to keep any money they find to save up for something special.

One Mom had a blast doing this with her 6- and 8-year-olds, and while they were busy, she had time to complete some of her own work online. However, when her daughter's teacher called home the next day concerned that she had brought a $100 bill to school, Mom had to let the kids know that 'finding change' did not include going through Daddy's pants pockets or Mommy's purse! So, to avoid any confusion, set those rules clearly beforehand.

Now & Later

Now that your child has money, she will come up with great ways to spend it faster than she's saving it. Let your child know that while it's fun to spend, it can be smarter to save. One great way to teach your children about saving is by creating two containers, one for spending 'Now' and a separate savings container for 'Later'. Each time your child collects money, earns money, or gets an allowance, encourage her to put money into each of the two jars - some for spending Now and some to save for Later. Once she accumulates enough in the Later jar, she'll be able to purchase a larger, more expensive item she's been wishing for. Assist your child in keeping a record of how much she has saved toward her goal to keep her motivated and help her stay on track. Because children need limits set for them, it may be a good idea to keep their Later savings 'safely' placed in an unattainable spot so they won't be tempted to spend it too soon. Allow them to keep their Now container in their room for accessibility.

For The More Mature Crowd

Your teenager probably wants it all, and it seems like they don't care whether it breaks the Mom&Dad bank to get it. It's not that they're necessarily greedy and irresponsible, there's a lot of peer pressure taking place not only at school, but also from turning on the television. Nowadays, if you don't have the trendiest clothes or latest gadget you are simply not cool. There is a solution for Moms to help their teenagers become wiser about the way they use money while still remaining popular.

A great way to teach your teens about money is by using the good ol' Dow Jones. When their next birthdays roll around, give the gift of allowing them to choose a stock to invest their own money in. Explain to them how the stock market works, what affects the economy indirectly and directly, and what that ticker on CNN means. Teach your children so they will understand the pros and cons of low risk vs. high risk investments. Help them make a sensible stock selection. They will feel invested and proud of their stock as the value rises and disappointed when it falls. When the newspaper arrives in the morning, you'll be shocked at how your teens scramble for the Business section to check on their stock. Don't be shocked if you hear your children making long-term plans from the money their stock will make. Their knowledge about the value of investing will spill over into how responsible they are with money. Their peers will be impressed with their level of maturity and you'll be proud of their growth.

These are great ways to get your children invested in money matters. There will be many other opportunities for you to take advantage of in laying your child's financial foundation. Remind your child that charity is important and that even a small financial contribution will help others. Let your junior accountants practice their math by re-counting your change after you leave the register, for accuracy. Create a cool personal budget sheet for your teens to use to keep track of their spending and savings. This will help them later in college. As a Mom, know that each interactive learning activity you create and encourage builds your children's financial foundation so they can survive successfully in life.

Copyright 2006 Pat Brill

How To Get A Luxury BMW Without A High End Budget

Established in 1916 and originally a manufacturer of aeroplane engines, BMW have been producing cars for over 80 years. Their first car was the 3/15 which first rolled off the production line in December 1927.

Aiming for the medium to high end section of the car buying market in terms of both luxury and performance, each and every one of BMW's current cars are beautiful and leave many car buyers wanting to drive away in one as soon as they see them.

With some of the price tags running close to 100,000 pounds, though, they aren't the most affordable cars on the market. However, just because you don't have a spare 80 thousand pounds lying around doesn't mean that you can't drive a BMW and these four points show you how to get a luxury BMW without a high flying pay packet.

1. Opt for a 1 Series - the cheapest range of cars that BMW offer, the 1 Series has faced somewhat of a lukewarm response since it was introduced to the market, primarily for the fact that it doesn't hold the main features of a traditional BMW in terms of power and size.

However, with a base price tag of less than 18,000 pounds and still possessing the trademark BMW aesthetics, owning a 1 Series has been the way forward for many who want to own a BMW but who don't have the required budget.

2. Go second hand - the cheapest way to buy a car generally is to go to a second hand car dealership and it's no different when you're looking to buy a BMW.

Remember, second hand doesn't have to mean that the car hasn't been looked after and in the case of BMWs - especially for models that were in high demand when they were first manufactured - they will very often be in a fantastic condition, whether they're five, 10 or even 30 years old.

3. Use BMW finance - head to a main BMW dealership and you'll be able to take advantage of the company's fantastic BMW finance package.

Allowing you to spread the cost of the car over a set number of months, it's an option chosen by many as it means that not only do you not have to find a lump sum to pay for the car, but you can very often afford a model on a monthly basis better than what you could do if you were to pay for it in full.

A form of car finance is car leasing. This is an option that has become increasingly popular in recent times, car leasing allows you to drive a car at a price that is a lot cheaper than buying it outright. For example, you can currently lease a BMW 3 Series on a 4 year contract for 281 pounds per month as opposed to 562 pounds per month to buy it outright using a car loan.

Having a Diversified Portfolio Protects All of Your Investments

Everyone has a horror story about how a stock crashed and ruined their portfolio, but that is not the markets fault, it is the investors for not having a diversified portfolio. One stock should never spell disaster for anyone and while it can hurt you a little bit, it should never take you out of the game. To prevent this, make sure that you have a diversified portfolio.

Think of a diversified portfolio as a life jacket for your investment accounts. The ocean is the market and you would have to be a fool to wander into it without taking the right safety measures. Just when you think your investment portfolio is about to drown, your diversity will save it and keep you and your investments afloat.

In order to have a diversified portfolio, your money will have to be spread out over a variety of stocks that come from different investment points and different sectors of business. When one sector goes down, another sector is generally doing well. This gives the opportunity to either ride out the bad wave or pull your stocks out and move them while the other sectors recover your losses. Having the right mix of cyclical and countercyclical stocks is the best way to go about this.

Cyclical stocks will see the largest fluctuation with the market. These are companies that benefit from a rush or up time in their niche. Going back 15 years or so, the banking industry was a perfect example of this. People were buying homes and the market was going through the roof. Of course, all of that changed when people could not afford their mortgages and the cycle collapsed.

While there are some stocks that generally reflect the market as a whole, there are other cyclical stocks that go in the opposite direction of the market when it is headed down. Some industries flourish during tougher time and as you are pulling out of the downward stocks, you need to get invested in the sectors that benefit as the market and economy are rebuilding.

All the while, you need to also have a mix of countercyclical stocks in your portfolio to balance off the tough times. These are stocks that are things that people are going to use regardless of how the economy is. They may not show huge gains, but food companies, energy companies and gas companies will generally continue to show a moderate profit regardless of the economy.

Something else to consider is the volatility of the stocks that you are going to invest in. Large cap companies will require the most investment, but probably have a long history that you can research and decide if you want to invest or not. While they will show swings, they will not nearly be like the swings of small cap investments. This is where a lot of investors go to hit a home run as there are times when you can see you money grow by well over 10 times in a single trading session. However, you may also lose it as they can very easily bottom out.

Every investor that plans on staying active in the market needs to make sure that they have a diversified portfolio. This will enable you to reap the rewards during a bull market and still find opportunities during a bear market as well. When profits are rolling in, some extra risk may be warranted with some small cap stocks, but as long as you have that diversification, you should be in fine shape for your retirement years.

Q&A - John Harrington, Citigroup - Lessons From a Shared Services Journey

Q: John, let's begin with a bit of background. How did you get to your current role?

A: My background is finance. I qualified about eighteen years or so ago, and I've spent most of my career in finance, management accounting, statutory accounting business analysis etc - I moved around quite a bit. I sort of fell into shared services, I guess, about eight or nine years ago at Reuters, where I was asked to set up a pilot for the financial shared services area, established that and ran it for a couple of years, expanding it throughout the head office and UK area. Then as part of the shared services management team, we built a global shared services model based around five regional service centres. I did some change management at the time, bringing in the ERP and the PRP, then decided to take a job that concentrated on the transactional area. I had never actually done that sides of the work and I wanted to get a full spectrum of the shared services work.

We established the shared service centre in the UK, and I ran the transactional shared service centre. The plan was to set the five regional shared service centres up, and then to move into a global model. So, whilst I ran the transactional side for two years, there were various discussions taking place as to where we should build the global service centre; we eventually settled on Bangalore. I was asked to head up the global design team, to build the model and the design around the Bangalore SSC. So I went over there for a bit, did some benchmarking, recruited a management team, and we re-designed all of the processes in the five shared service areas. It was quite interesting; although they were only established two to three years earlier, they diversified so much (even though we had a central core team that was supposed to keep all of the processes standard, each service centre had diversified) and it was a case of going back in, understanding the gaps and building the model, and then implementing it. We successfully implemented that in 2005. Then at the beginning of 2006 I joined Citi.

Q: Since then you've been partly responsible for a revolution in Citigroup's procurement supply operations. Tell us the story of that - what has changed?

A: Sure, I played a part. I'm not sure how big a part because I have only been there for two and a half years. This actually started five, six years ago with the implementation of the ERP system globally; it was predominantly put in in the US, which makes up approximately two-thirds of the people in Citgroup - so there are well over two hundred thousand people there. It was re-implemented across the larger countries across EMEA. (One thing I would say there, in hindsight, is that we actually changed Oracle quite dramatically, and that's had an impact on the countries we can roll out to, purely based on cost, because now the maintenance and the implementation is far more difficult than if it was just a delivered system.)

So I entered two and a half years ago, when Citi had been extending the coverage of PP - we actually call our Oracle system PP, as well as the process - and at first it was a case of extending that further, we had the systems teams to roll it out. Then it was a case of building the procurement - transactional procurement - and payment services and we started doing that by building a regional process centre in Budapest.

Q: How big is that centre now?

A: Well we started a year ago. We have now got about 120 people there, and we are still moving the larger countries there; we expect to have double that amount by the end of the year. Fundamentally we've moved out the transactional procurement, our accounts payable, our expense compliance, and we have moved some HR functions there as well.

Q: How far have you succeeded in freeing up working capital?

A: I think we are just starting. The benefit of moving into Budapest was that we could get some really good quality staff. We've now bedded down the service centre, we have got through the stage of the labour arbitrage, cost savings and so on. So I would say that we are now just starting on the process of putting up working capital. For example we have a prompt payment discount team; they have been in there for about four or five months and we are ahead of the game on the realisation of our prompt payment discounts. In what is just a pilot at the moment - we are targeting the UK first because it's the largest country in EMEA - we're working very closely with our strategic source department, who are negotiating the deals, and then we have a specialist team based in Budapest who are realising those prompt payment discounts. I think it's early days. I think four or five months into it we have hit the prompt payment discounts via the purchase order route. We are trying to accelerate the payment on account route, where we work with various suppliers or categories that do not fit in with the PO profile. That has worked fairly well.

Q: What about integrating procurement and AP: how long has the process taken, is it still ongoing, and what does it involve?

A: That was quite interesting, because in Reuters I'd integrated the procurement and accounts payable functions when I set up the shared services. When I went to Citi, although they were part of a very large shared service organisation, they were still independent. It was only when we set up the SSC that we co-aligned the transactional procurement with the accounts payable team. That was about a year ago, and that proved really successful - so much so that they have actually now made that a global model and about four months ago that was globally transitioned across America and the Asian countries as well. So that had been a huge success. It makes a big difference: the team work better together, we build up the subject matter expertise. The real quick win is the problem resolution: we solve problems very quickly together.

Q: What were the biggest obstacles you encountered with the integration of procurement and A/P?

A: I think it was selling it to the business. We tried to sell them the whole package; we implemented the no-PO-no-pay model, at the same time that we rolled out the service centre, and at the same time we integrated procurement and A/P. The biggest obstacle in Citigroup is that we don't mandate anything in Citigroup: we negotiate everything with our business clients, and the biggest obstacle was getting them to buy into it. That took a lot of discussions.

Q: Why?

A: The thing about banks is, when you go to them and say "if you do this you save £100,000" you're talking to investment bankers who are dealing with millions everyday, and they don't really care! Also I think they didn't like the idea that there was going to be more self-service in the process - they were going to have to requisition by the Oracle system. Before, they just rung up their suppliers, who they wanted to deal with. If you are an approver within the business, there's a misconception that you can go and order on behalf of the business. That's not the case: we had to work with them to get them to really understand that we wanted to control who they dealt with. Once we did that it was up to them to control how much they spent with their client.

Q: And what about the importance of KPI's?

A: KPIs are hugely important. You ned to understand that they they also evolve along with the project (we're looking at this as a project even though we're out of the new phase now). As I said before, it was very difficult and you had to negotiate every step of the way; KPIs were vitally important as they reflected any changes we had on the performance, cost, speed, and accuracy. In the long term, it was so important to show the quick wins, and generally it is a lot easier to get agreement, to take the next step forward, if you have proved to be successful in the previous step.

We tried to have meetings where possible - if not, we would issue dashboards, or email updates - and while not wanting to bombard our customers we constantly tried to show that we had produced this quicker, or that was better controlled, and this was cheaper. KPIs made a huge difference as we went along, as we could prove that we were successful at various phases.

Yes, we had problems: you always have problems, moving to a shared services organisation, and putting people through a standard routine with procurement and accounts payable. But KPIs were hard facts; you'd have people complaining, or they'd get word of mouth, where one person wasn't happy and everyone would start to moan. The KPI's were the one way that you could prove in black and white that we were improving cycle-times, we were improving accuracy, and we were saving money for the company.

Q: Who drew up the KPIs?

A: I worked very closely with the guy heading up the procurement transition: we had both previously worked in Reuters,and we both joined Citi together. We had a fair idea of the KPIs we wanted; we sat down with the project team and we developed those over a period of a couple of months. KPIs change as you sort of evolve through the project: first of all it is just the basics - how many and how accurate - and then you change those.

Q: How important was leadership buy-in?

A: Hugely important. People don't generally want you to do this kind of thing: you're talking shared services, you're talking centralisation, and you take away people's power.They like to order what they want, when they want to order it; any time there's a problem, people jump on it - and they will highlight the issues, the errors - so from an internal point of view leadership is crucially important to keep people - both the project team and the operational team - focused. It's also crucial to go out and influence these people, your customers; you need to have someone they are going to listen to, just have the vision and drive to push things through. I needed, many times, senior sponsorship.

Q: What would you do differently next time round?

A: I mentioned the ERP: I would make changes. Other than that I think the one thing that always catches us out is what is left in the country rather than what you have moved. Everyone concentrates on what they want to move into the shared services area or the procure-to-pay area, and they don't look at what's left out in the country. They don't take as much time on that; that's always a problem. I think as well that there are always exceptions that cause the problems. You can sit there and write up the process flows and the procedures, until your hands are sore - but there's always ten percent of any process that is going to be an exception. It's understanding those exceptions that's important, because that's what's going to trip you up afterwards.

Q: How far can Citi's experience be a marker for other companies, in particular smaller institutions?

A: Great question. I don't think that there is any barrier to any company making changes. Ok, Citi is a huge company - we've got 52 countries in EMEA, and therefore we have the funding etcetera to move to a regional service centre. But you don't have to move region: you can do it within country. You don't have to buy huge Oracle or SAP systems; there are plenty of ERP systems there that you can use. I think it's just about the basics: even re-structuring your department is fairly easy to do. It doesn't have to be on a huge, grand scale to save significant money. You know, Citi with 370,000 people is huge and Reuters with 14,000 people is not small, but they have both achieved the same goal: I think that smaller companies can do that. National companies can do it - it doesn't just have to be international companies either.

Q: Finally, what is the most important advice that you would give to anyone at the beginning of their shared services journey?

A: There is no order on these, so I'll just waffle through...

Always understand what the end goal is; even if the project has changed you have got to keep an eye on the end goal. For example at Reuters, we knew the end goal was going to be setting up the regional service centres and moving them to a global service centre. Within Citi the end goal is setting up a regional service centre, and we're looking to add the value; so different outcomes if you like, but we are aware of what they are. Always keep them in mind, because you can very easily get waylaid.

Set targets along the way, short-term. Once you can prove you have hit your previous target and have been successful in that, it is a lot easier to get support sponsorship to get to the next bit. Don't look at it like some huge project: break it down into smaller chunks.

Keep the system as vanilla as possible, it is easy to roll out and far easier to maintain an upgrade. That's a massive one I think.

You need to have strong support from senior management, otherwise you will be there negotiating forever. At Reuters, we had a bit of a burning platform; it was very easy with the MD and FD onboard, and it has taken a lot longer in Citigroup. We're not struggling in financial terms, but it is a tough time for banking; all of a sudden it becomes much easier because the senior management is saying "let's do it".

Build a strong project team. What I like to do is build a team that is split between those that have expertise in engineering, and those that know the business. So for example in Reuters, we used consultants when we first built the ERP and set up the regional shared services, but used wholly internal people for the global re-organisation, because they had been through the pain. You need to have that team that know the business. You don't want just engineering people, you need to know the business as well.

Only migrate standard processes and systems: that doesn't mean that you have to standardise them before you migrate, but don't take in different systems and different processes. What you generally find is once you have actually proved that you can be successful in certain things, you get a lot of customers saying they want to move this and that. Make sure what you move ties in with your strategy. Be ready to say no to a system or process if it doesn't fit in with what your strategy/plan.

You have to make sure that roles and responsibilities are defined from the kick-off wherever you are moving to. Too often the sending parties just "dump and run", particularly if the outcome is that they leave the organisation. That's tied in with SLAs: to be honest when I started many years ago, I thought they were just a piece of paper to go through. I've learnt, though, that they're vitally important because - particularly when you are starting - they can help to protect the new SSC staff. Once you've got them signed off it gives you certain leeway. You're going to make mistakes, but they help you against customer complaints. They also help to remind other parties of their responsibilities. They're really important.

I think lastly, as part of the process, make sure you go through everything in infinite detail: walk through the process flows. We have conference pilots when we move work, and we try and lift as many exceptions as possible because as I said they are the ones that catch you out.

Cash Advance - Easy Finance and Help When You Need it the Most

In times of financial trouble or other emergencies in life, your paycheck spending lands up in a total mess. But there is absolutely nothing to worry. The temporary loans or cash advance options are always a phone call away. You need to just let the cash advance lending store know of your requirement and someone would come to you in short span of time. The officer from the payday advance lending store would be there at your doorstep even before you are deciding what next to do to meet the immediate cash requirements. Cash advances in St Louis is a search term that you may alternatively search on the internet to get a list of cash advance outlets so that you can call up the nearest one to serve your purpose.

With most of the employed Americans feeling the heat of the recession sinking deep through their families and lifestyles, and many jobs getting lost every day, Americans are looking for ways and means to survive through this terrible nightmare. Families need to be managed, food has to be provided and, most importantly, a steady income needs to trickle in until the hard times blow over. The bad days are said to be over but the devastation and ruin left behind would take a long time to clear. Hence families are out there waiting for someone to lend a helping hand. It is in these hard times that the friendly stores offering cash advances in St Louis come to the aid of those stuck in the recession whirl in and around St, Louis, Missouri.

There are no long formalities to be followed if you are looking for a payday advance. The things that the cooperative and friendly firms giving cash advances in St Louis would be asking of you is whether you have a steady income, whether you have a verifiable phone number and if you have an existing checking account There is no need to submit personal bank documents and statements, you do not have to submit your credit scores for the past 3 years and collateral to stand by you in the event you fail to repay. Most important of all, these firms dealing with cash advances in St Louis also allow you to roll over the advance to the next month at a very nominal interest charge, provided you let them know this well in advance.

If you have a good credit rating and a big bank balance, there is no real need of seeking for a payday advance. With this in mind, most of the outlets helping with cash advances in St Louis offer you the best terms possible and ensure that your financial needs are taken care of in the least possible time. Some even deposit the amount of the advance to your checking account in a matter of a few hours. With most of them coming under the umbrella of Federal laws, you can be sure that you are dealing with some of the best payday advance outlets in St, Louis.

Unlock the Chains to Your Financial Freedom

What is your Life Plan? Do you have a plan? I don't believe the majority of Americans ever planned to hand over their financial destiny to the great credit monster. I do believe that we have failed to plan. We have found ourselves locked behind the bars of this financial prison. The biggest downfall to financial crisis is living beyond our means. This is an old concept if you live a champagne lifestyle on a beer budget something has to give. This is simple, when we spend more than we have our financial bucket is empty and we don't have a bottomless well to fill the bucket. When we overspend, we go in debt.

Possibly the largest hurdle on your way to becoming financially free is your behavior. Our behavior is guided by our money personalities, which are handed down to us from generation to generation. How we handle our money is a state of mind, which we now know that 80% of financial transactions are based on behavior not head knowledge. In order to finish this race you are going to have to embrace change. You see if you are heading toward a financial crisis, change is inevitable. Either you continue down the road to your financial crisis or you can begin the path to financial freedom. The truth is the average American family has an annual income of $40, 816 with the average family debt of $38,000. Over 55% of us worry about money and 70% of working Americans are living paycheck to paycheck. It has become more important to Americans to look good rather than face the reality of not having the income to keep up status quo. The way we approach our adult life is to spend the first five years of our careers trying to obtain the status that our parents took thirty-five years to acquire.

Our whole attitude toward credit has changed in just a few short years. Our grandparents thought debt was dumb and paid cash for everything. Our parents thought a little debt was OK with the onset of home mortgages and revolving credit. In 1970 only 15% of Americans had a credit card. In our generation debt and living beyond our means has become the norm.

The most popular debt management method that emerged is called the Debt Snowball Method. The road to your financial freedom is not an easy one and will take time. Working through your debt will take patience. This is a process that works every time. It doesn't matter how long it takes. When you follow the plan you can cross the finish line. Winning is what this is all about and you do win by following the basic principles in the debt snowball.

The steps to the debt snowball are very basic in fact; so simple you may shake your head in disbelief. However as I mentioned earlier it won't be an easy road. Here is how the debt snowball works. Pay minimum payments on all but the debt with the lowest balance. Make a higher payment on that debt until its paid, and then start paying down the next debt with the lowest balance. This method begins the process of getting the debt down to a manageable level. It actually gets the debt paid down pretty quickly if you use it correctly. Think of the debt snowball as just that, you list all your debts in ascending order from smallest balance to largest.

Here is the debt snowball process:

List your debts in ascending order from the lowest to the highest.

  • Commit to pay the minimum payment on every debt.
  • Determine how much extra can be applied towards the smallest debt.
  • Pay the minimum payment plus the extra amount towards that smallest debt until it is paid off.
  • Then, add the old minimum payment from the first debt to the extra amount, and apply the new sum to the second smallest debt.
  • Repeat until all debts are paid in full.

As you begin to pay off your debts from smallest to largest you gain momentum by seeing results. The results are an encouragement to continue paying on the snowball as the momentum builds. In theory, by the time the final debts are reached, the extra amount paid toward the larger debts will grow quickly, similar to a snowball rolling downhill gathering more snow (thus the name). The theory works as much on human psychology as it does on finance; by paying the smaller bills first, the individual, couple, or family sees fewer incoming payment requests as more bills are paid off, thus giving ongoing positive feedback on their progress towards eliminating their debt.

During the debt snowball process all retirement contributions should be suspended this will free up additional funds to pay down the debt snowball. Some may adjust this plan reducing retirement contributions to only employer matching programs.Your debt snowball usually would not include a first home mortgage but is instead paid off as part of one's larger financial plan.

Following the debt snowball process is a sure fire way to attack your debt prison. Freedom from your creditors is just down the road. I encourage you to take control of your money and begin the path to financial freedom.

Covered Calls - What Are Our Options?

Last week we investigated Covered Calls, a strategy whereby we write Call Options against shares we own in order to increase our return from owning the shares and to provide some downside protection should the share price fall.

Once we write a covered call, three things can happen;

1. The share price can rise in value;

2. The share price can stay the same; or

3. The share price can fall.

Let's consider the alternatives and assume the share price rises. As with all option strategies, the alternatives exist to do nothing. In such an instance our option would be in-the-money (ITM), our option would be exercised and our stock sold.

Our profit from such an occurrence would then compromise the initial premium we received from writing the call plus the profit from the sale of our shares. Whilst we would have made a profit on the transaction we would no longer own our shares.

This brings us to a very important consideration: you must only write options against shares you are willing to sell. If you have pre-capital gains tax stock which has inherent tax advantages to it, you should NOT write options against it unless you are willing to sell it.

Instead of having our stock called away, we have a second alternative. Suppose the share price has risen very high. If we covered or bought back the option we would lose money, as the value of the option would now be greater than the premium we originally received for it. However, we have removed our obligation to sell our shares at a lower price than where the share is now. So in reality whilst it has cost us money to buy our option back, we have a larger unrealised gain on the shares due to the steep appreciation in the share price.

In addition, by closing out our option (buying it back) we are now free to write another option at a higher strike price - thereby increasing our potential profit.

Such a tactic is known as Rolling Up.

Often, the extra premium generated from the second call we write is enough to cover the loss incurred from buying the first option back, thereby putting us back in a profit position.

Also, this profit is identical to the one we would have made if our stock had been called away. The major difference between these two alternatives is that we no longer own the stock after being exercised - whereas we retain ownership if we buy our option back. It is not always immediately apparent which of the two alternatives is best in any given situation.

If the share price stays the same, then the option will expire worthless. We retain our shares and get to keep the premium. We can typically make between 2-7% of the value of the shares on a monthly basis. Annualised, that's a return of 20-60% per annum! But what if the share price falls?

Defensive Action

Suppose we own Telstra (TLS) shares that we purchased at $7.70 and when TLS was trading at $8.20 we sold TLS July calls for $0.30 premium. We now have a $0.30 downside protection. Let's now assume that TLS falls heavily and is trading at $7.30 - we have an unrealised loss of $0.40 on our stock. What action can we take to enhance our position?

As our stock falls so too does our option. The first step is the buy the option back thereby locking in our premium. Secondly, we must look for another option with a lower strike price and/or later expiry date.

This tactic is known as Rolling Down.

Suppose in our example we let the option expire worthless and sell a TLS July 750 call at $0.30. This would provide us with an additional $0.30 downside protection.

Hence our downside breakeven has been lowered from $7.40 to $7.10. So, rolling down has simultaneously given us further protection and increased our income if the stock stabilises.

Car Loans - Owning Your Dream Car is Possible Now

The Indian car market is on a roll and according to industry sources, in the coming years it will only further expand. The high income ratio and a resurgent middle class have contributed a lot in the growth of the market. Until recently, one had to choose from a handful of cars. But now with the arrival of new models, it has become quite difficult to pick up the best. Along with it, the relevance of car loans too has grown in the financial market. Now a major chink of the Indian population is relying on these loans to purchase their dream car.

These loans present an opportunity to all the individuals to own a car. In fact, these loans have been equipped such that it offers 90-100% of the total finance required to purchase the car. Laced with beneficial terms and conditions, the repayment term for the loans lasts for a maximum of up to 7 years. With these loans, you will be able to purchase any car of your choice and that too without facing too many hassles.

The interest rate levied on the loans is reasonable. Usually it is evaluated on the basis of amount that you had borrowed for the purpose of owning a car. Another benefit of availing these loans is that you can utilize the loans to purchase a used car too. However it should not be older than 5- 6 years.

The loans are secured in nature as to avail the loans; you will have to pledge the car intended to buy as collateral. The ownership rights will be transferred once you have fully repaid the loan amount. Till then, you can use the car without any fear.

While availing the loans it does not really matter if you are salaried individual or self employed. But there are some requirements that must be fulfilled. For instance you have to provide details such as your address, identity proof, bank account details. More over paying a sizable income as down payment will help you derive the loans with better terms and conditions.

Car loans in India have virtually changed the way people look at cars. With these loans, people can at least realize the dream of owning a car.

Subprime Auto Leads - Steps to a Successful Car Deal

So, you're in the market for a new vehicle? There are many, many dealerships clamoring for your patronage. How do you know which dealership is right for your needs? What brand offers the most benefits? Should you show brand loyalty, or should you branch out to something different? Whether you change automaker labels like you do blue jeans, or you demand the same brand every time, you'll need to know a few tips to help you make the most of your purchase.

Obviously, the first step towards a successful auto purchase is to define your needs. This means defining what you actually need out of a vehicle (people moving, towing, etc), rather than what you want out of a vehicle (speed, the newest style, etc). Your new car represents a very large purchase, much more significant than that pair of jeans mentioned earlier. Ensuring that you have a vehicle with which you will be happy means identifying needs, not wants.

So now, you know the type of vehicle that you need. Now, it's time to consider brands. While brand loyalty can be a great thing, it does not mean that another brand cannot offer you significant value. When evaluating vehicle brands, you must ensure that you take into account reliability, ease of maintenance, length of warranty and resell value. The higher the resell value of your potential vehicle, the better off you'll be when trade-in time rolls around once more.

Evaluating brands also means investigating dealerships. You may not have a dealership within driving distance for a particular brand. In this case, the Internet can help you locate the right deal. However, whether you choose an online dealership or one in the real world, you'll need to be prepared for the financing aspect of the deal.

Ensuring that you get the best deal on auto financing means being a knowledgeable consumer. You'll need to investigate the dealership's incentives (usually the automaker's incentives), as well as the dealership's reputation for service. You will also need to know your credit score and what your credit report shows. A weak credit score can send you looking for a subprime lender, while a strong credit score allows you to choose almost any lender.

If you have a weak credit score, the best choice is to use a specialist lender. You're more likely to receive a good interest rate (or even be approved) through one of these lenders. In addition, even if you have perfect credit, the best choice is to obtain financing from somewhere other than through the dealership. Dealerships are notorious for increasing the interest rate extended to you, as well as other practices that can cost you a bundle. Know what type of vehicle you want before you set foot on the dealership lot.

In addition, try to have your financing already in hand; you'll find that you save a ton of money over getting a loan through the dealership and may even get better loan terms in the bargain.

4 Reasons Why Qualifying For FHA Financing Requires Higher Credit Scores

For borrowers who are in the market for financing, but don't have the sufficient down payment and higher credit scores to secure conventional financing, a FHA loan may be their best bet. In addition to the upfront mortgage insurance premium (MIP) which can be financed, a minimum down payment of 3.5% and a median credit score as low as 580 is required by FHA. If you can put down at least 10%, FHA will even accept a median credit score as low as 500.

In addition, borrowers will have to pay an annual mortgage insurance premium. This insurance is put in place to protect the lenders interest in the event the property goes into default. This amount is typically rolled into the monthly mortgage payment.

However, because FHA loans are offered by banks, mortgage brokers, savings and loans and credit unions, borrowers will not only need to meet the requirements set by FHA, they will also need to comply with the lender's internal guidelines as well, which are typically more strict than what FHA will accept.

Although a couple of major lenders have recently lowered their median score requirement to 580 which is in line with FHA's current requirements, borrowers need to be careful not to be lulled into a false sense of security. Borrowers who are looking to secure FHA financing also need to be mindful of any number of potential issues that can (and often do) arise when starting with marginal credit scores.

1. The lender's underwriting guidelines can change on a dime.
Lending institutions continuously update their underwriting criteria according to how a particular group of loans perform. If a lender decides to increase their credit score requirements during the processing of a borrower's loan, the loan can still be denied even after a borrower has been preapproved.

2. Lenders may require more documentation that wasn't identified during the beginning of the process.
Lower scores often cause lenders to request more documentation such as more asset information. If the borrower is unable to provide the additional information that they were not made aware of initially, it could not only delay the process, but cause their loan to be declined altogether.

3. Starting with marginal credit scores leaves no room for error.
It's not uncommon for an old charge off, collection or other derogatory item to pop up on a credit report during the loan approval process. For a number of reasons, lenders often rerun credit during the processing of a loan before it closes as an added precaution. If the borrower's scores have dropped below the median score required during the processing of the loan, their loan could go from approved to denied in a blink of an eye.

4. The likelihood of getting approved by another lender will be significantly diminished.
When applying for financing, borrowers need to take into consideration that their credit scores will decrease during the process. If their credit scores are already on the fence, just having another lender retrieve credit can cause the loan to fall flat. In the event borrowers need to take the loan to another lender, having better credit will provide a cushion from derogatory changes that could appear on their credit profile during the processing of the loan.

The reality is it's not just enough to be approved for a FHA loan. In addition to meeting the lender's as well as FHA's criteria, borrowers will also need to be able to maintain their approval status throughout the loan process in order to secure financing. For borrowers with marginal credit who are interested in obtaining FHA financing, taking the time to increase your scores before attempting to secure financing is crucial.

Having better credit also puts borrowers in the position to qualify for a lower interest rate, not to mention that having increased credit scores will make the process of obtaining a loan go much more smoothly. In today's world, when it comes to acquiring financing, an ounce of prevention is worth a pound of cure.

Negotiate Your Way Out Of Debt

Eliminating your debt is a daunting task. What can you do to get out of debt fast? Believe it or not, negotiation along with proper financial responsibility is your foothold out of the rat race. Learning how to eliminate your debt might be one of the most important life skills that you learn because it can bring you happiness and fulfillment. In order to successfully eliminate your debt, you must use a combination of self-control, proper negotiating skills, and some future planning.

Here Are Some Tips

1. Chop 'em up or freeze 'em. Start by taking all your credit cards out of your wallet/purse and cut them up into pieces. If you're one of those people who make the claim that you might need those credit cards in case of emergency, then a unique strategy is to freeze your cards--literally. Put the credit card into a paper cup and fill the cup with water and then freeze it. You won't have immediate access to the credit card and it will still work for you in case of emergencies. Whatever way you choose to get rid of your credit cards, make it a symbolic ritual of your commitment to get out of debt.

2. Start living within your means. You'll be amazed at how much money can slip through your fingers on small daily purchases. Start living within your means by paying cash for the things that you need to purchase. Start looking for the cheaper items. Remember, brand names do not always equate to being a better product. Big businesses count on the fact that you are going to toss them your money without question, so don't make it so easy for them. Use coupons wherever you go. Buy in bulk to reduce costs. Learn how to cook. The ways to save money are endless. Just remember that living within your means does not mean you have to live poor--it just means you have to live smarter.

3. Consolidate all your high-rate credit cards. First check out the maximum credit limit and APR on all your credit cards and choose the one with the lowest APR and consolidate your other credit card balances onto that one account. Make sure that there are no hidden fees associated with the balance transfer. Another way is to negotiate a loan that offers a lower APR than what you are currently paying for and pay off your high interest cards with that loan. Just be very careful about the small print because many credit card and loan companies will offer a low introductory APR, but once that is over, they jack it up through the ceiling.

4. Invest in your debt. Many people who are stuck in debt still pay quite a bit into their mutual funds or stock portfolio thinking that they will get a higher rate of return. In most cases, this will never happen. Annual APR's for credit cards are a whopping 24% or more. I have yet to see a constantly performing stock or mutual fund that turns out even 15% on a regular basis. Treat your debt like a high-interest investment--one where you are guaranteed to earn a huge rate of return. Always invest in your debt before you put money into investments.

5. Use a trusted family member. One of the best ways to get out of debt is with the help of a financially stable family member because they will usually give you the cheapest deal on a loan. Get an IOU agreement in writing and pay them a predetermined amount every month. Some people choose not to go this route because of pride, but it could be the fastest and cheapest way out of debt. Just make sure you possess the integrity and honor to repay your debt to them otherwise you will have more problems than just financial ones.

6. Don't get suckered into taking more debt. A dirty negotiation tactic that loan companies like to use is to offer you more of a loan than you need to pay off your debt, thus adding more debt onto your existing debt. This tactic works the same way as when a child brings a stray puppy home and asks, "Can we keep him?" The credit companies know that there is a great deal of emotional attachment to that extra credit and they are betting that you are going to take that "stray puppy" home with you. Resist the temptation to take that extra credit home with you because it will cause more problems than it is worth.

7. Kill the smaller vermin first. If you have several debt accounts in various denominations, then attack the smallest debt first with full force and kill it as quick and as painlessly as possible. Once that debt is gone, then use the newly freed savings from the last debt and apply it towards killing the next largest one, and so forth. This is a simpler and much more effective way of eliminating debt than paying small amounts off of each loan. It also has the psychological benefit of boosting your motivation with each progressive success.

8. Stay busy. It's a known fact that if you have too much free time on your hands, you are more likely to spend money than if you were busy. Take up some recreational activity to keep you occupied so that you don't have that free time to go spend your money.

9. Set up an auto-pay system. There is a ridiculous amount of money to be made on late charges and finance charges. Credit card accounts spiral out of control because people see that they do not have any monthly minimums dues and let it roll over to the next month. The credit card companies love this because you have just given them extra money in the form of finance charges to your account. Always pay more than your minimum to get out of debt. Avoid handing free money over to companies who charge you for late fees by setting up an EFT or automatic bill pay system so that you won't have to deal with writing the checks, finding stamps, and mailing the bills every month. Having an automated system do this for you will make sure those bills get paid on time.

How To Take Control of Your Home Debts With Responsibility and Purpose

It has never been more important to handle your debts in a responsible manner than in today's economy. Having a responsible debt management plan in play is going to make life in the present and in the future a lot easier on you and your family. We all know that expenses are a part of daily life and we are always being required to make one sort of payment or another by using cash, debit cards, credit cards, ATM withdrawals and checks. If you are not responsible in how you manage these things you are going to start getting confused about where all of the money is going.

You need to be able to sit down and work out a budget that is going to work well for you and your family. One of the first things you need to do is make sure that you know what your different categories are that are part of your budget. If you try to rely upon far too over generalized categories and budget you are going to end up overspending when you should be saving. Some examples of some specific budget categories would be:

  • Groceries
  • Entertainment
  • Auto (gas)
  • Auto (upkeep)
  • Auto (insurance)
  • Health Insurance
  • Charity
  • Loan (home)
  • Loan (school)
  • Clothing (school)
  • Clothing (work)
  • Home (repairs)
  • Home (improvement)

This by all means is not the extent of the different categories. This list is just to give you an idea of how specific you should have your different budget categories.

If you want to maintain a good budget then you are going to have to be organized. In order to be organized you need to keep good records of all of your spending. How you do this is entirely up to you. It can be done by hand in a ledger book or you can do it but putting your budget on an Excel worksheet. However you decide to do it, you need to be consistent and always remember to record everything that you spend money on.

If after you make your list of categories you notice that you still look like you have enough left over for savings and investments, then you should add these categories to your budget list and then make sure that you do your best to include money in these categories as well.

You need to make sure that you include a rollover into your budget. What this means is if you spend say $100 on clothes one month and your budget is $150 then you need to allow that $50 to roll over to the following months budget. On the other hand, if you happen to spend $175 one month on clothes you need to roll it over as well but the amount allowed for the following month should only be $125 for that month.

In order for your budget plan to work it is important to not only follow the above pointers but to also make sure that you check your budget often.

Used Cars - Some Useful Information About Car Covers

Protects Your Used Car From Many Things
Exposure to the harmful rays of the sun can rot away your used car. Things like bird droppings, particles of dust and unfavorable climatic conditions further make the situation worse. What can you do to protect your used cars from the effects of all these things? Fortunately, you have the car covers that are specifically designed to protect your used car from these adverse effects. Here is some useful information regarding types of car covers and from where you can get these covers.

Different Varieties
When you start looking for the covers for used cars you will find that there is a lot of variety as far as the size and type of the covers is concerned. Different people may need car covers for protecting their used cars from different outside problems. To cater to the needs of all these people, companies offer car covers made of different kinds of materials. So, it makes sense to perform the thorough research before you reach any decision.

Customized And Universal Covers for Cars
Broadly we can classify the covers in two categories, namely customized and universal. When a car cover is offered in the market in standard shape and size then it comes under the category of universal covers. On the other hand customized covers are the ones that you can get prepared according to the needs of your particular car. A comparative study about both types of covers suggests that people find the customized ones more convenient and more functional too.

Materials Used For Making Covers
Let us talk about the different kinds of materials used in car covers. If you are looking for a cover that can serve both outdoor and indoor purposes then you can opt for Weather Shield or Noah barrier Fabric. If you need a good cover for indoor purpose only then Tan Flannel and Dustop will be the right choice. There are people who live in extreme climatic conditions like the dew, rain, snow and many industrial pollutants. To combat the effects of all these you may buy a cover made of Storm weave.

From Where To Buy
Now, the question is from where you can get the car cover of your choice. Here are the names of some companies that offer good quality covers. You may choose any one among the Mats-n-Covers, car Stuff, buy Automotive, Car Cover World, Car Accessories, East Wood, Car Bytes, Exotic Wood Dash, Auto Anything, Metro Parts Markets, Race Pages, The Amazing Roll Up Car Covers, and many other companies. Cover up your car with care!

Ten Steps to Improve a Bad Credit Rating

1. Sign up to a credit reference agency

If you are getting multiple fines for missed payments, and getting several phone calls from your creditors per month, you need to find out exactly why. The most popular credit reference agencies are Experian and Equifax, and your report can be ordered for a small fee.

2. Request 6 months' worth of statements from your bank and creditors

Many people with bad credit ratings tend to avoid looking at statements, and sitting down with a historical account of your spending activity is the most effective way to identify where you are overspending and can help identify excessive spending trends.

3. Prioritise paying off CCJs (court judgements)

A County Court Judgement (CCJ) is one of the most crippling additions to a credit file, and implies that the person with a CCJ has ignored repeated requests to pay off debts. Paying a CCJ off as quickly as possible is a surefire means to improve a bad credit rating.

4. Stop applying for more credit and cut up your store cards

This may seem like an obvious point, but many people with serious debt problems continue to obtain more credit. They continue to apply even if they've been refused elsewhere, and each time they do this their credit score is weakened as they are considered a liability. If you have store cards, cut them up and pay them off immediately. Unlike credit cards, store cards cannot be used as a source of emergency cashflow, and the mentality associated with them is more about "treating yourself" rather than being responsible with your credit.

5. Pay at least 70% off all of your credit cards

Running maxed out credit and store cards and making the minimum payment each indicates a lack of trust in your ability to manage your debts. Ideally, if you have a £1000 credit card you would never want to exceed £300 credit. Concentrate on paying off at as much of your cards as possible, keep your cards below 30% of their maximum and your credit rating will improve.

6. Keep your credit cards open

Once you've paid off your credit cards, don't close them. To maintain a good credit rating you need to continue borrowing. Once you have resolved the issue of running maxed out credit cards and have paid at least 70% off each card, continue to borrow small amounts and pay it back each month.

7. Move all of your direct debits to within the first week of getting paid

Unless you specifically request a date, direct debits can be staggered through the month, and it's easy to get stung by a direct debit that comes out a few days before payday. Phone bills and utility bills also influence your credit rating, so ensuring that they all come out when there's money in your account will help prevent missed payments, which can quickly destroy a decent credit rating.

8. Get a landline phone and get on the electoral roll

This is a strange point, but landlines and registering for the electoral roll gives your credit file a static and trusted address, which can positively influence your credit score.

9. Further down the line, set up a savings account

Whilst it'd be too much to ask to start saving if you already have a bad credit history, by making steady monthly payments into a savings account you are showing creditors that you are responsible with your earnings, which of course looks good on your record.

10. Don't be afraid to seek help

There are dedicated charitable companies designed to provide assistance and guidance with regard to bad credit repair. Don't be shy! Such advisors work with thousands of people a year in the same situation as yourself, and can often prescribe good, common sense advice that you may not have thought of.

Parading Through Public Trades - The Stock Ticker

When I was a young person, I wondered why some neatly dressed, serious businessmen were so fascinated with the stock market ticker-tape inside the lobby of a big stone building. Was it inside the NY Stock Exchange or the Fidelity Brokerage, I cannot remember, but this was much before the time when the image of stock market ticker tape made it into our homes with the TV channel FNN to later appear on the screen through other channels.

Nowadays, most anyone from investors, brokers, economists, money managers to lay people are interested in watching the tape. In that case, to what purpose does the ticker tape serve?

The ticker tape exhibits what goes on in the markets by signaling the action and the latest price of the stocks. A stock is a unit share of any one public company. When one looks at a tape, he sees that the tape records several characters.

If a person is following the action of any one company, he would have to know the stock symbol of that company to read its action on the ticker tape. Let us take as an example the Coca-Cola Company with the symbol KO. The tape would show:

KO -the ticker symbol of the company

9M- the amount of shares traded, in this case M stands for million, as K would stand for a thousand and B for a billion

@ -at

60.79- the last bid price in that day per share of stock

and up or down arrow - to show the direction of change

0.83- the amount of change

The number of letters in a symbol usually indicates where the stock trades. For example, a stock with a four-letter symbol would be in NASDAQ, and a stock with a symbol of three or fewer letters would be in the NYSE or AMEX, while a stock with a five letter symbol and a Y or an F at the end would belong to a foreign company.

The stock exchange took its roots in 1653 when a twelve foot stockade was erected in Manhattan against the attacks from the Indians and the British. Afterwards, Wall Street was built along the line of the stockade, and in 1790, the traders' markets came into existence.

The stock ticker's invention dates back to Edison and the telegraph technology. This invention was called a ticker tape because of the noise made by the printing mechanism. Other ticker tape inventions by Calahan, Phelps, and Laws, followed; however, it was Edison again who came up with The Universal stock ticker that performed better and faster than the rest.

After the New York Stock Exchange bought the rights to a stock ticker, it started selling stock information to brokers and other business people who kept tickers that printed out the information in their offices. During celebrations and parades, the office workers threw these rolls of paper out of the windows, and the phrase ticker tape parade was coined. The first ticker tape parade was in October 1886, during the dedication of the Statue of Liberty.

While the ticker tape that prints on paper is no longer in use and is replaced by the electronic tickers, the basic principle of analyzing the tape stays the same. Even though the entire economy does not depend solely on the stocks' actions, the streaming ticker tape still provides an insight into the markets, especially if one is familiar with the stock symbols.

Sources:

Encyclopedia of American History Sixth Edition ed. by Richard Morris (New York: Harper & Row, Publishers, 1982).

Opdyke Jeff D., The Wall Street Journal: Complete Personal Finance Guidebook, copyright 2006 Dow Jones & Company (Three Rivers Press, Publishing Company, 2006)

Financialhistory.org

Investopedia.com

Traders.com- Resource documents

NYSE.com

Reality Vs Fantasy in Commercial Financing

During the past decade the U.S. economy has been riding a steep roller-coaster. The Dot-Com bust had been extinguished by another bubble, one of a much larger proportion that had a severe impact on the entire world. In 2007 the Real Estate bubble burst and its effects had triggered a near collapse of the financial sector. The Commercial real estate sector has yet to be exposed when loans become due and banks will not be willing to renew them, an event that may very well cause a multitude of commercial real estate owners to default.

Money is tight and lenders are cautious. Yesterday's reality is today's fantasy when it comes to commercial financing. For those investors that are in need of financing and are looking for a successful closing there are two primary guidelines worth following. A viable project combined with viability of the investor's qualification.

Viable Project

The first question to ask yourself is how much risk would the lender incur financing your project? Lenders assess their risk by studying the local economy and the need for such a project. They also consider the worse case scenario, in other words what they would do if they had to foreclose on your property. They always assess the possibility of default no matter how great of a project you have. Loans on raw land is fantasy in today's financing arena due to its inability to generate income unless it's improved. If the lender had to foreclose on unimproved land it would be very difficult to sell it. New construction is another hard - if not impossible - to finance project. In an area where there are already many distressed vacant properties a lender won't be inclined to take the risk no matter how great the figures on a proforma might look. They know projections are...simply projections, plans that are not necessarily guaranteed to work.

How much risk the lender is willing to take lending on your project is determined by the LTV (Loan to Value) or LTC (Loan to Cost). A submission for a 100%, 95%, or any high ratio is simply a waste of time for all parties involved. With a very few exceptions the high ratios do not exist. And chances are your project has a high likelihood it won't be an exception. What's realistic then? 70% (best case scenario 75%) or below on conforming deals and 50% to 60% on non conforming deals, and it won't be on values from past years' appraisals. Often the underwriter will reduce the current appraised value to an even lower level just in case they need to foreclose within 3 to 4 months.

Another factor of utmost importance is the DSCR, a calculation that shows the property's ability to cover the proposed debt. The lender wants to see that for each dollar of debt there is a minimum $1.25 in net operating income. Many lenders would rather see a minimum of $1.35 or more. When calculating the proposed debt another reality needs to be brought in the equation. At what interest rate one might consider the loan. All too often investors calculate the rate at the lowest figures seen on advertisements. So, if one is to calculate his potential DSCR at a 5% rate and that figure is barely at 1.25 be assured there is a high likelihood there will be no closing.

Vacancy levels are scrutinized and play a very important role during the financing process. High vacancy for longer period of time leads to lower operating income, lower values, lower DSCR, and a slim to none chance of approval. Many investors rely on their Realtor or property managers to secure tenants however when the vacancy level has been high for a long period of time it might be a good idea for the property owner to get actively involved. Buying distressed vacant property in need of rehab work is even more challenging to finance since the conforming approach is not realistic. At that point hard money - in lucky cases private money - is most likely the best fit with low LTC ratios (no more than 60%) and a solid exit strategy.

If your project has passed preliminary tests and makes it to the level of Conditional LOI (Letter of Intent), know that appraised values from the recent or distant past have little significance to lenders today. Values have dropped and they have not yet reached their lowest levels in the commercial sector. Lenders will ask for a new MAI appraisal and they will order the report from their approved sources, report that investors must pay for upfront. In certain cases the lender will also ask for a Feasibility report from a reputable company.

Viable Investor

A feasible project represents a lost opportunity for an unqualified investor. Qualification is considered based on the credit and financial strength of the client borrower. The liquid funds invested and the reserves allocated for the specific deal play an important role. Lenders must be convinced that sufficient capital is being contributed by the investor when evaluating their risk.

A well-prepared loan package consists of a professionally executed Executive Summary, up-to-date Financial statements, most recent three years of Tax returns, year-to-date Profit & Loss, Rent roll and/or three years Proforma, a detailed explanation for the funds requested, a Bio of the investor evidencing solid experience and success in the field, a Resume of the property manager, pictures of the property, and for the non-permanent financing request a clear and concise Exit Strategy. If the investor is a separate entity (Corporation, LLC, LLP) Articles of Incorporation or Certificate of Organization along with the Operating Agreement should also be included. If the property is leased out the lender will ask for all lease agreements. When distressed property is in need of rehabilitation a complete Breakdown of costs should also be part of the package.

Clients who are not able to provide such a professional package or brokers not asking for one are merely wasting their time. Lenders will simply not entertain a loan request on a verbal request or a poorly presented package. There is a high demand for funds with a limited supply in today's economic climate so the one who has his act together wins.

Another unrealistic request that investors have not yet fully grasped is the idea of getting a non-recourse loan. Gone are the days when the borrower did not have to provide a personal guarantee. Today in 99% of the cases lenders will not be satisfied with the collateral only. Therefore expect to provide the personal guarantee.

Shopping numerous funding sources for a half point lower rate is another way to waste time and energy. Smart loan professionals can quickly spot an unrealistic and/or uncommitted borrower. As an investor you will gain by finding and establishing a strong business relationship with the loan professional that can guide you to a successful closing or like in many cases tell you why your project is not viable. You should be able to assess how experienced is the individual you're considering based on the questions he asks, the documentation he requests from you, and his thoroughness on why your loan project is real or not for financing. If he tells you everything you want to hear, offers you the lowest rates, the highest LTV's, or that he can close within 30 days, it's time that you look in another direction. A good one is hard to find but once found the relationship should be valued just like you value your relationship with your accountant.

If all of the above make sense when presented to the lender - and meets the criteria - the deal becomes real and the lender will most likely want to have a conference call with you. If the call is successful a Term Sheet along with a conditional LOI follows. At this stage the lender is interested in further pursuing your loan request and as a borrower you must be prepared with a Due Diligence fee. This fee covers for the cost of appraisal, title search, and in many cases the cost of traveling to visit the property and meet the borrower. If the loan does not close - typically because of any new discoveries that are negative - the fee is non-refundable.

A word of caution...if it's too good to be true it ends up being too good to be true. If you and your project don't meet today's realistic lending criteria - many of which have been mentioned above - and for whatever reason you get a conditional approval, common sense should tell you that you're not dealing with a viable financing source. Expect tough lending guidelines to be around for a while however the more investors get used to the idea that the good old days of easy financing are gone, the better prepared they become, and the better chances they have to be first in line for commercial real estate financing.

Getting Control Of Finances

In order to really understand what I want to share with you in this post we are going to go back to my life in Virginia. This was a time in my life when I was able to experience success for the first time.

Now, success could mean several different things for each person individually, the success I am speaking of here is financial. By the time I was 21 years old, the carpet company I had started just 2 years prior, was making me a solid 6 figure income. We purchased our first home, owned 2 brand new Dodge Ram Pickups and 2 Cargo Vans. We had the big screen TV, all the latest movies on DVD, and spent more time eating at Friday's than we did in our own dining room! Life was pretty good...!?

Or, was it really? Is just making a lot of money financial success? What if I told you that everything I had, from the trucks, TVs, living room furniture, bedroom suite, and even eating out, was all on credit? Sure we made enough money to meet our payments every month, however, did we ever really keep much of it? See, I had no clue that what I was doing was actually bringing me further away from financial freedom, which is way more important than financial success.

It isn't about how much money you make, it is about how much you keep!

We wanted more "stuff", we took on more work, and bought what we wanted, when we wanted it. Exchanging more time for more money just to pay for the "stuff" we already had. The sad part is by getting stuck in this trap you pay a premium for everything you have. Interest adds up quicker than you think. Plus, you literally become a slave to your debt. You must find a way to continue working more and more just to keep what you have.

Time is more valuable than money. Choose how you spend yours wisely!

Fast forward now to the start of our life in Michigan. We left behind our old life in VA. No more carpet company, and good bye to our negative relationships which we felt were holding us back. (There are a few very close friends and family in VA whom we miss very much, and you know who you are!)

The only problem? We still had debt, and lots of it! You see up to this point in my life I learned how to make money, our best month to date was $40,000, however, I still did not have any Financial Common Sense. Just changing jobs, starting a new business, or moving to a new State won't change your Financial Intelligence. That can only happen when you change your thinking and learn how to manage your money wisely. Some of us have to learn the hard way. Unfortunately, this was one of those lessons that happened for me, and I will never forget it.

In 2005, after moving to Michigan, we built a strong 6 figure income online. Things were rolling, until we made making more money the priority of our life. Once that happened, one bad decision and our whole world came crashing down!

You must learn to be happy with all that you have while your pursue all that you want. Our flesh is never satisfied, we will always want more. There is nothing wrong with acquiring nice things, living in an awesome home(s), or driving newer vehicles, however, seek Financial Wisdom first.

So what happens when you are making $10,000 plus per month, yet your expenses totaled $12,000 per month, and your income totally stops? Imagine for a moment being punched in the gut by Mike Tyson, when he was in his prime, and that is what it feels like.

Some of you have experienced this same issue, others may be on track to doing this same thing, and some of you were smart enough to learn about money and avoided this from happening in your life!

What happened next has been the greatest, and most difficult, experience of our lives.

To Be Continued...

God bless,
Ron