Category: Financing

The Reasons Why You Should Opt For The Aid Of An Expert Debt Advisor

The number of people who are incurring debts are steadily increasing. This cannot be avoided, especially since the negative repercussions of the recession are still being felt all over the world. But then, not a lot of people have an inkling as to how they can properly manage their finances in such a way that they will not be buried under their monthly dues. In general, debt advisors who are experts in their field will say that the improper management of finances as well as the lack of awareness of what being in debt can do to a person and his or her loved ones are among the major culprits why more and more people cannot get out of the debt trap they have slowly but surely subjected themselves in.

There are a number of people who are aware of the existence of debt relief options that can eventually help them get out of debt and help them stay debt-free at all times. However, they do not really take maximum advantage of these options simply because they do not really know all the details. They fail to solicit the help of debt advisors from reputed debt management agencies who can truly get them out of the rut they are in.

If you feel that there is no way out of your sorry predicament, think again. You are not in an entirely hopeless situation. All you need to do is to have the proper mindset. First and foremost, you should realize that you need professional help. Without the realization, then you will just go on and on and on in your sorry, debt-full predicament. You should always remember that in order for you to find a workable solution, it is important to acknowledge that you have a problem and that you need help.

Your next step after realizing that you need to seek the help of an expert in debt management will be to look for a good one. He or she will be able to help you map out payment strategies and follow them to a tee. You should, then, make sure that you seek the help of someone who is well-versed in all debt’s aspects. Be wary, though, at all times since you might be conned into getting the services of an impostor.

One way to ensure that you are getting help from a real debt advisor is not to fall for ads that promise things that are too good to be true. You should be wary when seeking out debt relief websites. You have to see to it that you go to a debt management company that is already well-known as specialists in debt management. Reading reviews will help you do so or better yet, go for word of mouth advertising. If you know people who have already tried the services of a debt management company that was really able to help them solve their debt problems, there is a good chance that you can become successful if you work with that same company. It is also important to trust your gut feel while looking for a debt advisor. If your intuition doesn’t coincide with what a prospect debt advisor is telling you, do not stop up to such time that you find the one that you feel is the perfect person or company to help you. Make sure to ask for their credentials and good references.

You should always remember that even if the debt advisor you solicit the services of is good, ultimately, the decision to finally get rid of your debts and enjoy financial freedom like you never had before is yours alone. Discipline yourself. Spending your money wisely and stashing up for a rainy day is always a good thing.

It is not always a great solution to go for consolidation loans for debt negotiations. Going for debt services is way, way better.


Understanding Credit Card Rewards The Proper Way

Reward credit cards are packaged in several types, each one offering rewards programs calibrated to suit particular spending patterns. But they all have the same basic premise: the more purchases you charge to the reward credit cards the greater the rewards.

Types Of Reward Credit Cards

Frequent flyer credit cards. Points earned from a frequent flyer credit card normally go to the frequent flyer program of the airline you prefer. The points you earn is largely determined by the monthly spend made using the card. Aside from free flights, the frequent flyer credit card rewards may include free hotel stays, travel insurance, etc.

Credit Cards With General / Catalogue Rewards.

The credit card usually has partners in the program who provide the products offered for redemption under the rewards program. These items could be anything (the possibilities are endless) from gift cards, home appliances, holidays, shopping vouchers, magazine subscriptions, etc.Credit cards with Cash-back. These cards offer a very simple program: your account is credited for a certain percentage of the amount spent on particular items. As an example the card may offer a rebate from participating gas stations.

Credit Cards With Instant Rewards

These programs are more straight forward. There are no points to accumulate; you will simply receive an instant reward from participating merchants. This could take the form of an immediate discount, a buy-1-take-1 offer, or buy X items and get the Next free, etc.

Getting Value From Reward Credit Cards


Your credit card should fit your spending behaviour. If you use charge often and prefer not to carry any balances, reward credit cards that allow you to accumulate points should work best for you.

If you cannot pay off the entire amount due each month, point-based reward credit cards will be irrelevant. Rewards programs are partly funded through higher interest rates on purchases; if you pay your bills in full by the due date then you may avoid all interest charges, otherwise it could be very costly. Any balances not paid by the due date will attract the high interest rate. The cost of the high interest charges is likely to far exceed the value of any rewards earnt.

Often rewards cards have an annual fee. Their value to you therefore depends on whether the worth of benefits you receive exceeds the cost of being in the rewards program.

One quick way to measure that is to estimate how much you have to spend to get $1 of reward. One card may award you 1 point per $1 spend, whilst another gives 1.5 points per $1. In this example to redeem a reward worth 6,000 points you thus need to spend $6,000 on the first card and only $4,000 on the other.

A further method is the point currency concept developed by Cannex. Point currency gives you the spending value of your rewards points. All you need to do is divide the number of points for the reward item of your choice by the recommended retail price. The lower points needed the higher its value because you consume fewer points to get the reward.

For example, one program may require 10,000 points to win an item worth $75 in retail, but another program may need 12,000 points. The point currency in the first program is 10,000 divided by $75 or 133.3 points per $1 for the first, and then 12,000 points divided by $75 or 160 points per $1 for the other.

As far as the rewards item is concerned, the first program gives you better point currency. Note though that if you incorporate the first method and the example described above, you may need to spend $10,000 to accumulate the required points in one program (at 1 point earned per $1 spent) but only $8,000 in the other (at 1.5 points earned per $1 spent).

Your spending pattern and the offers from credit cards can change over time – try to keep tabs on whether you are still benefitting from a credit card scheme.


Why Do Banks Make So Much Money?

Banks make so much money because they can create money, effectively out of nothing, by lending. Every single pound in your bank account was created by a bank. Banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own.