Posts Tagged ‘Finance’
NOT that bad debt forever. According to Suze Orman, author of the book Women & Money: Owning the Power to Control Your Destiny, several types of debt can be categorized as a good loan.
”Debt itself is not bad. The problem is how do you handle it. If you care about children, you should start caring about money. I would not be surprised if they eventually run into financial disaster because you give examples of wrong.”
According to Orman, parents who are unable to properly manage the family finances would have difficulty financing their children’s education. In addition, in the old days they could also be troublesome because the child has no savings for retirement.
Good vs. bad credit loan
Orman explains, the difference between good loans and bad loans is how it affects your ability to achieve financial goals. A good loan can help you achieve your financial goals, while bad loans will only bring financial problems.
”Knowing the difference between good loans and bad loans is key to achieving financial well-being,”said Orman.
Which include both loans to buy assets such as loans, like home or a mortgage, education or student loans, medical loans, as well as business debt. Meanwhile, a bad loan is an amount of money borrowed to finance the desire or depreciating assets like cars, credit card accounts, home equity, and so forth.
According to be categorized as a good loan, a loan must meet the following conditions:
1. Debt should be limited, without the ability to continue to increase. Meanwhile, revolving accounts like credit cards is the opposite.
2. The interest rate debt should be stable, at a reasonable and predictable.
3. Debt should have a number of regular payments that can be managed within budget and on time to avoid late payment penalties and penalty interest rate increases.
4. Debt has a purpose that is considered reasonable by most people.
5. Debt was issued for behalves something like buying a home or invest.
China’s Financial System in Risk
The International Monetary Fund (IMF) warned that China’s financial system could face the risk, if property prices fell sharply and rising bad debts due to large loans during the crisis.
In the first formal evaluation of China’s financial system, IMF blames government intervention for the state banks to reduce regulation and supervision of markets and corporate governance, AFP reported.
In a report released on Tuesday (15/11), the IMF urged reforms, including allowing banks to rely more on market mechanisms such as interest rates.
“The banks in China and the financial sector is in good condition, but there is a vulnerability that must be addressed by the government,” said Jonathan Fiechter, head of the IMF team who compiled the report.
The current system has encouraged over-investment and lead to asset bubbles, the IMF said.
“While the existing structure encourages high savings and high levels of liquidity, it also creates the risk of misallocation of capital and the formation of bubbles, especially in real estate,” Fiechter said.
The IMF also called on Beijing to reduce controls on the yuan and allow central banks to adopt financial policies more freely.
Loan fantastic since the 2008 financial crisis has prompted many companies and local governments in China’s large debt, while a new slowdown in economic growth and decline in asset prices has raised concerns in paying off debt
SOME recent years Americans have the economic crisis. The concept of financial risk caused the stock price goes up and down. All financial risk is unfolding in the news. However, many people risk hidden in their personal finances, including:
When marrying your finances certainly join with a partner. But if this becomes complicated divorce. In addition to end a marriage requires a huge cost. Call it in America, the average divorce costs ranging from U.S. $ 15 thousand to U.S. $ 25 thousand. In addition to the exorbitant financial cost, divorce is painful and emotionally stressful.
How to avoid the financial risk of divorce is when starting a prenuptial agreement specify how each of your assets and your partner are protected. Be sure not to talk at length about finances and financial goals before marriage.
- have insurance
More than 50 million Americans have no health insurance. When they lose their jobs and suffer from certain diseases, can not afford the fee. Assuming they do not buy insurance and individual coverage was considered too expensive. Medical bills are the cause of 60 percent of bankruptcies in America.
- too long in one job
One of the biggest risks in employment is stagnant career. If you do not learn new skills in other words do not move up the career ladder at risk of income stagnation.
- in the old neighborhood
Many people who worked all their lives to pay for the house and gradually loses its value. This risk is very difficult to realize. Better to sell your home rather than hold on to a house in the wrong neighborhood
People often focus on the purchase of life insurance. But do not plan for the possibility they will live until the age of 90 years or more. The purpose of the financial plan must be longer than the age of your life. Another option to avoid longevity risk in retirement is to buy an annuity, an investment vehicle that gives you a monthly income
Professor. Dr. Beat Bernet, professor of economics faculty at the University of Saint Gallen, Switzerland, stating that the impact of the financial and economic crisis the European Union, is the collapse of these institutions.
Bernet said that the post-crisis banks and financial, will rapidly emerging political crisis in the European Union. “I would argue that the EU’s future will not survive in the form we know today.”
Professor Bernet who teaches economics study confirms that banking, “Until now there is no indication there will be recovery in the European Union even until the coming months. Indications are there precisely the contrary.”
According to program savings and tax increases are expected to trigger social instability in the countries of European Union member. Even the new force is expected to appear on the scene that will change the European Union.
Since its inception until now, the EU has never faced severe economic crisis and the current area. Financial and economic crisis it is called like a snow ball that his movement could not be dammed.
“Today we not only face the Euro exchange rate crisis in the EU, but also the roots are very deep crisis, including structural problems, decreased strength weakening financial strength to compete and members of the EU,” Bernet said.
Lecturer of the European economy was stressed also that the conditions today are very dangerous and the wider dimensions of which have been officially announced. “I do not believe this crisis can be solved by” umbrella penalang “or grants,” says Bernet.
Answering reporters’ questions published by the Swiss Berner Zeitung, about what steps should be taken? Berner said, “Actually there is no clear plan in this regard. The solution in question is currently only able to cover the surface only because the basic problem is in crisis. Countries that issued the economic rescue fund, in fact just a little to gain time.”
“In essence, the Euro currency union are now until the end of his age
NOT a secret that many adults who are stuck in a financial trap, and had to enlist the help of parents to free themselves from the problem. However, there are some things to consider before knocking on doors and ask for their help.
Condition of the elderly
Do not ask parents to help solve your financial problems, when every day they are still struggling to pay off your bills or worry about their retirement savings.
You need to find another way to get out of financial bondage, and do not burden them with your problem. As a child, you also have to face the possibility and the responsibility that one day they will have to live with you.
Various debt ranging from credit card bills, home loan or vehicle, and so can be disastrous for your financial health. However, you are more likely to get the loan money to pay off debt that is more”responsible”.
In a poll on the site Credit Cards, the parents expressed a willingness to help pay student loans, home mortgage payments, rent and car loan rather than having to pay credit card bills or even gambling debt. This is due to the latter type of debt is irresponsible spending. Parents certainly do not want to be seen to justify the behavior.
Do not ask for help unless your parents are really serious about cutting spending and looking for extra income. Find a place to stay with cheaper rent, find friends to share the rent, use public transport to work, make your own lunch, or find a second job.
Thus, in case you can overcome financial problems senditi without asking help from others. Or at least you have made progress to be seen by your parents.
Once in a lifetime
The biggest concern of parents is perhaps, one of assistance provided will lead to further help is endless. Concerns are certainly justified, because many children who have grown but remain dependent on parents to take care of their finances.
Not a gift
A Creditworthy.com poll on the site shows, the parents are more willing to help if funds provided will be returned again someday.
Some experts suggested creating a formal and written agreement, detailing the term of the loan, payment due date, until a fine if you do not pay it.
If you managed to get a loan from parents, the direct use those funds to pay your debts. Do not celebrate by spending money lent. Imagine how upset and disappointed parents, if you know that you are using the money they lend to vacation in a luxury resort and Bertram
Take responsibility for errors that you have created, and show the parents that you will avoid similar problems in the future.
there is also a Multipurpose Loan. As written in his name, Multipurpose Loan is a loan that could be used for any purpose can be used for consumption or to start new businesses such as printing, business and trade Sworn Translator. Well, one of the versatile loan products are often marketed Loan. Collateral is another name of security. Lo, do not borrow money from banks usually have to use the warranty?
Yes. In general, if you want to get credit, you have to pledge one of your own property to the bank so that if you are not able to repay the loan, the bank will confiscate your property is guaranteed. Surely it must guarantee the value of goods greater than or at least be equal to the value of money you borrow. But on Loan product, you do not have to submit items to the bank guarantee. You are only required to have a certain amount of income every month and deliver a series of evidence that could indicate that you are indeed correct for the amount of income required.
Of course, for the banks concerned, the risk of default from the customer will become even greater because the bank has no collateral from you and will oversee the bank is also not used to what the money they lend to you that (the numbers we will discuss upcoming special about one of the loans without collateral product is now being heavily marketed in the community).