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Money Saving Tips

Saving Money TipsThe reason why you’re probably here is because you have taken the great plunge called ‘marriage’, and are slowly coming out of the honeymoon phase. Or, you have just started becoming serious after a long tenure of a live-in relationship, and together want to plan financially for the future as a couple. So let’s focus on some great money saving tips for couples, which will help in settling all your financial issues.

State Your Goals

You must be having some common or different goals which both of you would like to materialize. Then, be it getting married (if you’re not already), possessing a house, bearing kids, or doing a Master’s degree in any particular field. Share these individual or joint goals with each other, fix a time frame for each goal, and plan accordingly to know how much money you need to save.

Formulate a Budge PlanMaintain a catalog of your daily expenses and keep track of it for over a month. Then compare your total expenditure with your total income, and verify whether you’re living according to your means. By maintaining an open communication, this strategy will help you to come up with a cost saving plan, by cutting off unnecessary expenses, thus retaining savings for the future.

Stay Clear of DebtsAvoid falling in a debt trap, and if you’re already in it, make sure your topmost priority is to repay the debt(s). It may not be possible always, but it will help in the long run if you save enough cash to buy something expensive, rather than buying it on credit or through a loan.

Plan Ahead for PensionSo what if you’re not old enough! If you want to continue your lifestyle the way it is now, you’re going to have to consider how to pay for it when you retire. A pension plan serves as a medium to fiscal stability after retirement. The earlier you start, the better it is for your retirement.

Save Money on Your Electricity BillsUse energy efficient light bulbs like CFL or LED. They last for many years and consume less amount of electricity. Unplug your appliances (TV, washing machine) when not in use to avoid vampire power usage. To protect your electronic appliances from a power surge, keep them plugged into a surge protector.

Call for Free Using Smartphone AppsIn this digital age, most of us like to chat. In addition to chatting, smartphone Apps such as WhatsApp, Viber, or Skype allow a cheap or free calling facility, provided the person you want to talk to is also online. This helps in cutting down on those telephone bills. But do mind your Internet data allowance first.

Change Old Equipment Into Cash Using the InternetA host of websites help in switching your old items, like a mobile, camcorder, or TV for cash. You can sell your old item for a certain price online, which acts as a marketplace for used goods, ranging from furniture to electronic items. This option also assists in releasing the pressure off your mind in cleaning out your closet of old or unused items.

Go on Dates That are Less ExpensiveWhile it may look tempting to go to that fancy restaurant or movie at the mall, they can also pinch your savings. Look for cost affordable options instead, like hiking or picnicking at a nearby scenic location, planning a dinner, movie night, or a game night (cards, Scrabble); the choices are limitless.

Create a Joint AccountA joint account can make finance handling easier and also fortifies trust in a partnership. You can make the most of your money by consolidating expenses. Talk about it at length and make certain that both of you are comfortable with this option.


Bad Credit

Bad Credit SolutionMany consumers wonder is credit repair legal? YES, actually it’s your right as a consumer to make sure your credit report is accurate, so there is nothing illegal about it!

There is also a huge misconception that credit bureaus are some type of government entity, they are not. In fact your local bar is just as much of a government agency as a credit bureau. A credit bureau is a business pure and simple, they have one purpose, which is to make as much money as possible. They don’t want to help you- they just want to make money! Making sure you have a low score helps them make cash, how?

Credit bureaus are essentially a lead source for lenders. They get paid by lenders so they can run your credit files when you want credit. They also sell thousands of leads everyday to lenders all over the country.

You know those “pre-approved” credit card offers you get in the mail? Well those are directed to your mail box from information sold by the credit bureau to the credit card companies.

I’ll give you one guess what type of consumer commands the highest lead price?

No it’s not the ones with excellent credit, they already have a good credit card and probably have money! You guessed it, lenders earn the highest profit off consumers with bad credit! Why?

If you have between a 580-680 you are the most profitable client for a credit card company or lender because you can still qualify for a loan and usually your willing to pay high interest for the privilege.

You might think this sounds crazy, aren’t those with bad credit a higher risk? Well not really because these lenders take out insurance to cover their loss in the event you don’t pay. If you have over a 600 FICO score they can get insurance on your account. Then if you don’t pay they collect the insurance and sell the debt! When you take into consideration the high interest rates you will pay most likely the lender would never lose a cent on your account.

Lets compare the lenders income possibilities for the following clients:

Good credit: Paying Bills on time, low interest rates, no late fees, low risk but low profit as well!

Bad Credit: Paying late fees, paying higher interest rates, needing more credit, cash advance fees. Higher risk but way higher profits!

As you can see over the life of the customer the bad credit client will always be more profitable. So its sad but the credit bureaus actually have an incentive to keep your score low!

You have the legal right to challenge anything you might feel is not accurate on your credit report. There have been laws written regarding your credit: how it’s reported, how long it can be reported, the accuracy of the reporting, and so much more. These laws are written to PROTECT THE CONSUMER!!!

Here are the main groups of laws and a short description of some of what they do:

The Fact Act (FACTA) – This act entitles you to a free credit report every year. It also forces the credit bureaus to disclose the factors that are affecting your FICO scores.
The Fair Credit Reporting Act (FCRA)-This act forces the credit bureaus to maintain accurate information on all its clients.

The Fair Credit Billing Act (FCBA) – This act is for original creditors. It forces them to bill correctly, notify the consumer correctly, handle disputes properly, and report accurately.

The Fair Debt Collections Practices Act (FDCPA) – This act is for debt collection companies. This act spells out exactly what collectors can and cannot do when attempting to collect a debt.

So as you can see credit repair is totally legal. It’s your right to make sure you have an accurate credit report. Have you been denied for a loan? Are your interest rates too high? Well its only for one reason, your credit report! You owe it to yourself to make sure the information is accurate.


Tips to Preventing Bankruptcy

Preventing BankruptcyAre you currently being overwhelmed by the hefty credit card payments you are required to shoulder? You are definitely not alone. Many people are facing the difficulties of getting out of this sticky situation. Today can be the best time to start over.

Don’t wait for tomorrow or put it off for later when it can be started right away.

It may not be easy to get back on your feet. That is because as you make credit repayments, you still need to continue taking care of necessary and other expenses.

Prepare to get into tighter and leaner budgets. The best thing to do is to keep your regular income flowing and to find additional or extra sources of revenues.

Here are ways I can recommend to begin the initiative to emerge out of bankruptcy due to credit card debt immediately.

Getting help from a credit counseling agency

A credit counseling agency can be a truly dependable and reliable party to ask help from. Such a non-profit organization is tasked to provide sound advice and guidance in starting a workable, effective, and affordable repayment plan.

Before approaching any credit counseling agency, prepare or gather all the monthly billing statements. There might be a need to provide a copy of your regular paycheck. Doing so will help the agency determine and assess your regular income, monthly expenses, and card debts. The information will give your counselor ideas on what types of solution and assistance your situation requires.

Debt management plan

You might need a debt management plan. It would be helpful if you intend to put your interest rates under your own control. You need a manageable payment system that you can really afford. Fortunately, such plans are now more popular and have become more common.

If your credit card accounts have maxed out and are already put under a debt management plan, your creditors will be forced to provide significant discounts or to scrap fees. They will even be inclined to waive penalties and even lower/eliminate interest charges.

However, you may be asked to temporarily avoid the use of any consumer credit and to make regular payments to the credit counseling agency, which will then disperse the amount to our different creditors.

Resisting the need to make credit card purchases

As you try to get back to your feet while trying to handle and overcome your overwhelming credit card repayments, you must set your resolve to resist the urge to use any of your credit cards for the meantime. How can you possibly overcome the situation if you keep on going back to the loop again?

It may be advisable to dispose of your credit cards, if you don’t like to keep them in a secured place, which you cannot easily access. You may also opt to use debit cards as replacements.

How about taking the discipline to use cash in every transaction and buying only merchandise that you can afford to pay for in cash? It will certainly help to arrest the growth of your credit card debts while you work out how to emerge from this situation.


Money Management Skills

Money. That which makes the world go round. It all boils down to the money that we have at the end of the day. Money determines the way we live, what we do, and basically every other decision of our lives. Without money, we are basically nothing. And that, I know, is something that no one will want to go through. So it becomes imperative that we earn well. But earning well is not the end all of everything. It actually begins from there. Money which is earned, needs to be managed well, so that we continue to benefit from it for a long time. And therein comes the part where we need to learn some basic money management skills. Because without these, we will not be able to develop effective methods of money management.

Most of us do not have the knowledge of what some of the most simple and effective money management skills are. So to help you out, this article shall provide you with just that.

Money management skills are not difficult to learn once you get the hang of how to go about it. Given below is a step by step plan that you can follow in order to nurture some of these skills.

Take Stock
The first thing you need to do is calculate how much you are earning. Add in all the resources. Once you have this figure, calculate how much money you need to spend every month. To learn how much you spend every month, the best method is to write down each and everything that you spend for a couple of days. The amount will most generally exceed the amount that you had in mind―that’s because we don’t realize how much we end up spending on small things. Keep in mind that you need this spending figure to learn the basic skills. It is also important to note that the figures of two months will never be the same, there will be more expenditures incurred in a particular month and not so many in the next. But an average figure can be definitely arrived at.

Allot Amounts
Now that you know an average amount of the money that you need to spend for a month, it’ll be easier to allot amounts to different things. Make a list of all the things that you need to spend on―rent, tuition, bills (newspaper, Internet etc.) groceries, emergency (very important), and miscellaneous. You can make a long term-short term list as well. Like monthly/weekly/daily, and segregate the items accordingly. Now calculate the amount that you need for each and allot the money accordingly.

Many people use the envelope method for household items and it seems to work for them. For this, use different envelopes and mark them―for example ‘vegetables’, ‘toiletries’, ‘groceries’ etc, and at the beginning of the month fill the envelop with the amount that you need. Stick to that amount no matter what. When you put it down on paper like that, you are constantly reminded of it and the tendency to overspend is curbed.

Take Care of Debts
Never ever keep a debt. Pay a debt off as soon as you can, because if you keep on piling it, it’ll just keep getting bigger and bigger and cut into your regular saving plan. Find out how much you owe and what you need to pay off―that is the first step in managing your debt. Credit cards, surplus bills―everything needs to be paid off. Make a plan for the same. How? Along with the other envelopes, make another one for the debts so that you have a clear segregation made. It might be difficult in the beginning, but once you start physically putting in the money, you’ll deal with the problem head on and with continued efforts, the amount will be paid off.

Plan the Future
Now that the preliminary stage is taken care of, you’ll need to save for the future. The most important thing to do here is draw up a goal. What do you want to save for? Retirement? Children’s education? A house? Car? Or even small plans like a music system, a new phone etc. Calculate the amount you’ll need to save for it. This is your first step. The next steps will be how to get that money in a stipulated period of time.

Having a budget is really important. One way of budgeting is the envelope way, so that you don’t end up spending more when you have already allotted a fixed amount to yourself. The second method of making a budget, and this is somewhat of a conscious change in attitude, is that you get it in your head to budget things. Consciously decide that you want to budget. Do not spend recklessly. Other than that, planning for the future and drawing up plans of the things you need to save for will help you to budget well. This is because you’ll know what and how much you need to save up on to get that amount.

After paying all the bills, the surplus amount that lasts needs to be invested well. There is nothing worse than stagnant money. So consult a financial adviser or an investment adviser who will calculate how much you can afford to save per month, after deducting the expenditure and surplus. After this he will draw up a scheme that suits you best. It could be anything from a fixed deposit account to investing in mutual funds or buying property as assets.

Easy Saving Tips
Along with budgeting and drawing up plans, you can also consciously decide to save. Here are some money saving tips that you can use:

Buy things in wholesale.
Instead of buying books, join a library or start a club. Use this same formula for different things.
Car pool to work, that will save on money for gas AND is good for the environment.
Buy things on sale.
Go through your daily expenditure sheet, you will find that there are several things in there that you can easily give up. Like a very expensive brand of hair product.
Turn off the power when you don’t need it.

Earn Extra
It has been found that we never tap the full potential when it comes to expending our talents or finding other means of earning some extra money. This is one of the more indirect money management skills that we need to learn. Here are some of the easiest ways to make money―taking on freelancing jobs, giving tuition, making use of your hobbies and talents like singing or dancing (giving classes, singing in a club) or cooking (providing snacks for a establishment or making a fixed amount for a bakery). Other methods include, selling things for scrap, holding garage sales etc.

Acquiring money management skills allows you to live better. It secures your future and helps you gain control over your life rather than the debts and money problems controlling you. It should therefore be our prerogative to learn and practice the several money management skills to lead a more fulfilling and comfortable life.


Buying a Stock

Almost all investors interested in the stock market must be wondering what they should look for when buying a stock. This is because no one wants to lose money here making any mistakes. A detailed study of the market is very useful in picking the right or quality stocks. Though there are experts to give suggestions, you have to take the final decision on your own and hence, gaining maximum knowledge of stock investments is always useful. Here are the vital things to consider before you actually put your hard-earned money into stocks.

Company Management and Performance
The company’s management and performance are actually inter-related. Most of the time, it has been observed that stable and good management helps companies achieve their financial goals quite convincingly. So, before you invest in any company’s stock, you should study the past performance and track record of the management. If you are convinced that the management is dedicated to the interest of the shareholders, only then you should put in your money.

The dividend paying history is one of the aspects to look for when buying a stock. Dividends are paid to shareholders by the company from the net profits after having made provisions for depreciation and depositing money in reserves. Dividends are given on a per share basis which means that more the number of shares you own, more will be the total dividend payout you will get. Generally, top firms with billions in profits give handsome dividends, and hence you should look for such stocks to get something more than just stock price appreciation.

Price to Earnings Ratio
Price to earnings ratio is the ratio of the current market price of the stock to its profit. If the current market price is less as compared to the earnings as compared to other listed peers, then the market cap of the company will be low and it can be a great investment bet.

Earnings per Share Ratio
This is the ratio of the total net profit generated in a quarter/financial year to the number of outstanding shares of the company. More the earnings generated on every equity share, better will be the performance of the company’s stock.

Gross Profit Ratio
Gross profit ratio is an important valuation ratio which needs to be considered for stock analysis. This is the ratio of the total gross profit to the total sales generated by the company. More the gross profit as compared to other firms, more will be the ability of the stock to perform.

Net Profit Ratio
Net profit ratio is widely used for knowing the profitability of a firm. It is the ratio of the net profit to the total sales generated in a particular period. More the net profit percentage, better is the company for long-term investment purpose.

Debt to Equity Ratio
Almost all businesses need loans to finance their projects. However, if the debt levels are very high, then the firm loses a lot of money every quarter in the form of interest payments. So, it is essential to know the debt to equity ratio of a firm. This is the ratio of the total outstanding debt to the shareholders equity. You should prefer companies with a low debt to equity ratio.

Effective Use of Cash
There are some companies which have huge cash reserves but are not able to use them properly to increase shareholder returns. As an investor, you should stay away from such companies as the chances of stock appreciation are low in such cases.

Institutional and Retail Interest
Before you become a shareholder of a company, you should know if big investors, retail investors as well as institutional investors are interested in the particular stock, a stock can go up substantially only if it is bought on a large-scale and hence, checking these statistics are necessary.

Expansion Policies
The chances of stock price appreciation are high in case of companies which are rapidly expanding. So, look out for companies that are opting for mergers and acquisitions for ensuring fast growth in the future.

So, by now, you must have clearly understood what to look for when buying a stock. When buying stocks for the first time, you should also consider your risk taking ability and investment time horizon to get good returns in desired time duration.


Stock Investing Strategies

Every business organization needs capital to function and earn profits. This capital is collected by the organization by issuing shares or stocks that can be purchased by individuals. When you purchase stocks of a company, you get a stock certificate which states the number of shares acquired, and implies that you have a partial ownership of the company. This means that you will earn a share of the company’s profits, in proportion to the number of shares you invested in. For example, if a company has 100 shares and you buy 5 of them, you have 5% ownership of the company. A stock market is a place where you can invest in, and trade for, stocks of different business firms at a certain price. An example is the New York Stock Exchange (NYSE).

When it comes to the best strategies to invest in stocks, there is no single strategy that is universally recommended. You can choose a strategy that suits you, based on how much amount you wish to invest, the risk you are willing to take, and how the market behaves. You should have a clear picture of how the stock market works, in order to invest in stocks successfully.

Techniques for Stock Analysis

There are basically two analytical techniques used by stock investors for stock picking, or choosing the stock to invest in. Let us discuss each one of them.

Fundamental Analysis

This method of analysis is used for analyzing the financial condition of the company, its market share, competition etc. There are two approaches for conducting fundamental analysis: top down approach and bottom up approach. Using the top down analysis method involves beginning with the study of global and international markets, and finally zeroing in on the best business firm in the local area. In contrast to this, the bottom up method of analysis involves studying about specific business organizations, irrespective of the region.

Technical Analysis

This method of analysis is about forecasting the stock prices of business firms by taking into consideration the past market data. However, its major drawback is that stock prices are unpredictable and do not follow any distinct patterns.

Strategies for Stock Investing

The stock market can witness both upward and downward market trends, due to which it is always advisable to adopt certain strategies to avoid financial losses. Let us discuss few of the best stock investing strategies that you can keep in mind while investing in stocks.

Remember the three golden words: selection, timing and price. Investing in the stocks of the right company at the right time, is fundamental for success.
If you are a beginner to stock market investing, you should not opt for penny stocks, or stocks of small public companies.
Set individual goals and decide what you want out of your investment. This will help you zero in on the perfect investment plan that will suit your needs. Remember that the ultimate objective of investing in stocks, is to make your money grow over time.
Before investing in stocks of a company, check on the risk factors involved to make sure it is safe and acceptable.
Don’t aim at getting rich overnight, instead, plan for long term returns.
Don’t rely merely on luck for success. Do your share of homework before investing, make sure the company has a stable management, consistent profitability and long-term growth potential.
To reduce the risk factor, it is advisable to invest in a number of growing companies, and keep a tab on their stock prices for an opportunity to buy more shares when there is a dip in stock prices. This will also add diversity to your investment portfolio.
Do not sell stocks except when it is favorable to do so. You can sell the stocks when either the stocks you have are not fetching you any profits, or when the company is close to the end of its growth phase.
Do not be impulsive in selling your stocks, merely because of the current market trends, or simply to achieve short-term gains. Do not allow short-term market fluctuations disturb you.

Investing in the stock market successfully is an art that you can master if you tread with care, and are persevering enough. Just incorporating some of the best strategies for stock investing will help you reap appreciable profits.


Loan Agreement

Loans have become very commonplace now. For almost anything and everything you can avail a loan. Be it a house, a car, or even repaying a loan as well! To make the transactions easier and hassle-free, banks and financial institutions use specific templates. A loan agreement refers to the document in which the terms, conditions, and details related to the loan are laid down. As we all know, there are numerous types of loans, with varying terms and conditions. The clauses may also vary with individual circumstances as well as requirements. However, there are certain elements that can be commonly found in most of the loan agreements.

A loan agreement typically includes details of the borrower, lender, amount of loan, period of loan, interest rate, monthly repayment, late payment, prepayment and cancellation, default in payment, etc. Additional provisions are included as per the type of the loan, and the specific circumstances. It is really difficult to come up with a template that can be used for all types of loans. As mentioned above, the terms and conditions may not be the same for all. This loan agreement template is a basic format that includes some of those elements that are common for most of the loan types.

Disclaimer: This template is for reference purposes only. It is always advisable to consult an expert, if you want to draft a loan agreement.


1.Between: __________________ (The name and address of the LENDER)

And: __________________ (The name and address of the BORROWER)

2. Date of Agreement: __________________.

3. Promise to Pay: Within _____ months from today, Borrower promises to pay to Lender______________ dollars ($_______) and interest and other charges as stated below.

4. Responsibility: Although this agreement may be signed below by more than one person, each of the signatories understand that they are individually, jointly, and severally liable for paying back the full amount.

5. Breakdown of Loan: Borrower will pay:
Amount of Loan: $__________
Other (Describe): $__________
Amount financed: $__________

Finance charge: $__________
Total of payments: $__________


6. Repayment: Borrower will repay in the following manner: Borrower will repay the amount of this note in _____ equal uninterrupted monthly installments of $____________ each on the _____ day of each month starting on the _____ day of _______, 20____, and ending on _________, 20____.

7. Prepayment: Borrower has the right to prepay the whole outstanding amount at any time. If Borrower pays early, or if this loan is refinanced or replaced by a new note, Lender will refund the unearned finance charge, figured by the Rule of 78, a commonly used formula for figuring rebates on installment loans.

8. Late Charge: Any installment not paid within ten (10) days of its due date shall be subject to a late charge of 5% of the payment, not to exceed $____________ for any such late installment.

9. Security: To protect Lender, Borrower gives what is known as a security interest or mortgage in: [Describe:] _____________________________________

10. Default: If, for any reason, Borrower fails to make any payment on time, Borrower shall be in default. The Lender can then demand immediate payment of the entire remaining unpaid balance of this loan, without giving anyone further notice. If Borrower has not paid the full amount of the loan when the final payment is due, the Lender will charge Borrower interest on the unpaid balance at ______ percent (%) per year.

11. Right of Offset: If this loan becomes past due, the Lender will have the right to pay this loan from any deposit or security Borrower has with this lender without notice to him/her.
If the Lender gives Borrower an extension of time to pay this loan, he/she still must repay the entire loan.

12. Collection fees: If this note is placed with an attorney for collection, then Borrower agrees to pay an attorney’s fee of fifteen percent (15%) of the unpaid balance. This fee will be added to the unpaid balance of the loan.

13. Co-borrowers: Any Co-borrowers signing this agreement agree to be equally responsible with the borrower for this loan.

Agreed To:




If you are planning to borrow or lend a loan, it is always better to opt for a written loan agreement that clearly states the terms and conditions. It is also advisable to draft such an agreement with the help of an expert. You must use the correct template or draft an agreement as per your requirement. Consult your lawyer, before drafting a loan agreement or signing one.


Private Money Lending

Individuals, who have a great deal of money at their disposal, may specialize in lending it to the people who find it hard to qualify for loans provided by banks and credit unions. The inability to qualify for loans provided by the aforementioned entities can be pegged down to an impending foreclosure, the need for hard money commercial construction loans, or requiring cash to finance the purchase of a property whose value cannot be appraised accurately. Such borrowers pose a great deal of risk to the traditional lenders due to a variety of reasons. Hence, it goes without saying that lenders, who provide loans to high risk individuals and businesses, expect adequate compensation as a reward for the risk assumed. Despite stringent conditions imposed by private lenders, borrowers, who have fallen on hard times, try to seek loans that are usually hard to come by.

The Need for Private Money Lending

Although, the government is providing a number of facilities to help people avoid impending foreclosures, the eligibility criteria for qualifying for such loans may preclude the borrowers from obtaining the same. For instance, borrowers whose loans are not owned by Freddie Mac or Fannie Mae cannot opt for a loan modification or a mortgage refinance under the Making Home Affordable Program. Again, this program is only meant for people whose loans are insured by the FHA (Federal Housing Administration). Borrowers, who are delinquent or have delayed payments by more than 30 days in the past 12 months, will not qualify for a mortgage refinance under the Home Affordable Refinance Program (HARP), despite the loans being owned or guaranteed by Freddie Mac or Fannie Mae. Hence, such borrowers would be forced to approach private money lenders to avert foreclosures by refinancing their mortgage. The loan to value ratio, i.e., ratio between the amount of loan and the appraised value of property, needs to be low. This is possible only if the homeowner has sufficient equity in the house. The money is lent for the purpose of refinancing a primary mortgage, and the borrower may try and purchase points in order to reduce the rate of interest on the borrowed sum. In other words, the private money lender ensures the safety of the money that is lent, by providing a loan against a property that has substantial market value. Borrowers, who satisfy these stringent conditions, can hope to obtain a loan and thwart foreclosure proceedings.

These lenders also provide commercial construction loans to businesses as an alternative to bank loans for making the requisite improvements to an existing structure or for financing the construction of a new building. Again, these are collateral based and the reason for approaching a hard money lender may be attributed to the business being a startup and not having supporting financial documents, justifying the ability of the firm to make good its commitments.

A private lender provides a loan, that is typically secured by an asset, that assures him of recovering the loan by auctioning the repossessed asset. The rate of interest is also higher than the interest charged by banks and credit unions. The high rate of interest is a compensation for the risk assumed, since risk and reward should be comparable to make good business sense. He generally expects the borrower to repay the loan as a lump sum. Lump sum repayments or balloon payments are the characteristic of this method, since the lender is unwilling to extend the repayment period or provide flexible repayment terms to the borrower.


Apply for a Credit Card With No Credit History

Money which can be used to buy anything we want, yet which we do not hold, feel and count in our hands. Money which can both save our lives and destroy it. Money is a necessity and our entire life revolves around it, right from figuring out means of earning it to how to spend it and our efforts to save it for a better future.

The modern concept of money doesn’t involve its physical presence, but rather presents itself in the form of a card, a magical card which can instantly make wishes come true. The Credit Card has revolutionised money, transcending physical boundaries and opening up multiple new avenues. There are cases where the only item we need is our credit card and the prospect of carrying money has changed drastically.

Who are the people with no credit history?

Credit History is associated with everyone who has used a credit card for any purchase. The people with no credit history are mostly students and new immigrants in a country, who have never taken out loans. In the case of card applications, an individual with bad credit history has a better chance of getting a credit card than a person without any credit history. There are however avenues to get a credit card with no credit history.

Individuals who wish to apply for credit cards without any history can choose from some of the options below, which can significantly improve their chances of getting that elusive cards.

    • Student Card – Most major banks and financial institutions offer exclusive student cards targeted towards the student community. These cards do not require an applicant to have previous credit history and can be obtained if the individual meets certain criteria. Having a job can make it easier to get the card approved and banks prefer to hand out this card to those who have a source of income.
    • Pre-qualification Test- Certain banks allow individuals with no credit history to take a pre-qualification test online. This test lets them know if they can get a card approved and the reasons why the card was denied, if it is rejected. This information could help one prepare better the next time they apply for a card.
    • Store Credit Card – Certain nations have the concept of store credit cards, which are easier to get and do not need any credit history. These cards have low credit limit and high interest rates and generally have cards which are not Visa or MasterCard approved.
    • Prepaid Cards – Individuals with no credit history but with disposable income at hand can apply for prepaid cards. These cards are as good as normal credit cards but the credit ceiling is limited to the prepaid amount. There is no fear of exceeding credit limits or late fees with these cards.
    • Co-signed cards – Banks offer co-signed cards for people with no credit history. These cards require someone with decent credit to co-sign for you, with their financial backing increasing your chance of approval. Co-signed cards can be a smart move if you have someone who trusts you and is willing to sign on your behalf, though they also allow your financial transactions to be viewed by the co-signee.
  • Secured Credit Card – Secured cards are similar to normal credit cards in most aspects, except the fact that one needs to make a security deposit in order to be eligible for a credit limit. Individuals without credit history can choose this card if they have suitable security deposits with them, which will essentially guarantee them the credit card.

Applying for credit cards without any history can be a tedious and long drawn affair but one has to remember that applying with any and all banks is not a smart thing to do. Rejection is a part of this process and one has to be smart enough to choose the alternative cards mentioned above in case of rejection. Getting any of these cards approved is likely good enough to get an individual a credit history, making it easier for them to get better credit options in the future.


Bankruptcy Advice

Deciding on bankruptcy isn’t the easiest decision. Many people see this option as a failure, but in reality it is a solution to help you get out of debt and enjoy a fresh start.

There are a number of different debt relief options available from consolidation loans to this option, which is why it’s important to do your research, determine what is the right choice for you and speak to a professional financial consultant to get the information and advice you need before making such a big decision, which will affect both you and your family.

There are many advantages and disadvantages to choosing bankruptcy to write off your debt. Understanding these advantages and disadvantages will help you make the right decision for you.

Looking at the advantages, you get a fresh start within twelve months. This type of option stays in place for around one year, after which you start your life anew, completely debt free.

Another advantage is that any unsecured debt is usually written off, which means that your debt is taken care of, stress is reduced and hounding calls from creditors comes to a stop.

There are thousands of people around the world who fear a knock on the door or when the phone rings because they owe so much money, this leaves them with serious insomnia, which affects every aspect of their lives. In some cases bankruptcy is the only solution to help them get back on track financially and improve their health.

Once you choose this option, you will want to find a financial advisor that can assist you every step of the way. The advantage to this is that you know all the forms are completed accurately and that the chances of your case being approved is increased.

This can only be approved through the High Court and is a detailed process consisting of petitions, statements and affidavits to prove your case. Once your case is approved, your assets will be used to pay off outstanding debts, your creditors leave you alone and after a year, you can start a new life.

During the year you cannot apply for credit, though you can open a bank account. You have to disclose to financial institutions that you are bankrupt and let them make the decision from there.

As mentioned, this type of solution comes with disadvantages, which you must be aware of. First and foremost, be aware that your assets can be used to pay off debts. This is especially true if you have used your home as collateral. Though you will be able to retain your appliances and possibly your vehicle, in some cases.

There are implications when it comes to your job. Depending on your position within the company and the industry in which you work, will determine whether you keep your job or not. Company directors are not able to work while they are going through this process. Be aware of this and ensure you find out how this will impact your job for the next year.

There is a fee for choosing this option which makes up the court fees, ensure you have this money available to pay for the service and help yourself improve your health, sleep better and get the hounding creditors off your back.

If you are self-employed, there is the risk that you will have to close your business. This is something you may wish to discuss with your advisor to ensure you are completely aware of what will happen if you choose bankruptcy as your choice going forward.

There are a number of websites where you can get sound bankruptcy advice in your country, enabling you to make the best decision that will help you and your family moving forward.

Successful Bankruptcy is a company managed by Hamilton and Clarke LTD, experts in the bankruptcy industry with years of experience and knowledge. The company guides their customers through the bankruptcy process, liaising with creditors and helping them complete the necessary documentation to present to the court.