Finance | BizSieve.com

Credit Card Survey Yields Interesting Results

While most Americans have a basic idea of how credit cards work, a recent survey conducted by SmartBalanceTransfers.com revealed that many are not aware of or don’t understand concepts that can save them money on hefty finance charges.

The primary question asked in the survey was, “Have you ever heard of 0% APR balance transfers?” Of the 1500 individuals surveyed, a whopping 62.2% had never heard of this technique. No fee balance transfers have a lot to offer customers. During the process, a credit card company, in attempt to acquire a new customer, will offer to transfer the balance on their existing card over to a 0% interest offer on one of their cards as a bonus for signing up as a new customer. Those who are able to take advantage of 0% balance transfer cards can save hundreds of dollars depending on how high their balance is and what interest rate is currently being charged.

For example, an individual with a $7000 balance on a credit card at an interest rate of 13.99% who pays $140 per month for their minimum monthly payment spends roughly $20 per month on interest charges alone, therefore only $120 is applied to the principal. Assuming the interest rate remains the same and no new charges are incurred, it would take around 58 months, just about five years, to pay down the balance. While the $20 per month may not seem like much, over the life of the balance, the credit card holder spends an astonishing $1,160 on interest charges!

It’s no wonder credit card companies thrive in the society we live in; consumers simply pay the minimal amount to get by not considering how it’s affecting them over the long term. The reflection clearly shown from the credit card survey reveals a society who does not take the time to consider the the long term perspective; even minimal research regarding procuring a cheaper interest rate would reveal this method to any consumer.

It is reassuring to know that most Americans are appearing to learn from their mistakes, however. The survey showed that around 60% of Americans aged 65 and over had basic understanding of 0% balance transfer offers, while those ages 18-24 only yielded 21% who possessed the knowledge of promotional offers. Seeing as how one must be 18 to open an account, this shows that most people first get into debt, discover they are in trouble later on in life, and then seek answers.

The wealthy in the United States aren’t just well off because of luck or special favor; they employ knowledge to make sure they are getting the best deals. Over 50% of those polled with income levels between $75-99,000 per year reported that they were aware of balance transfer offers, and those having incomes even higher than this range ranked over 70%! On the flip side, Americans falling in the income bracket of under $24,000 annually only reflected a 25% awareness.

A picture is worth a thousand words, and the picture painted by this survey reveals a lot about the current state of the United States economy. By creating a larger awareness of methods that can be taken to lower monthly credit card bills, younger Americans as well as those living in poverty will have a better chance to thrive.

View the full survey here.

Forex Brokers

If you are looking to invest your funds into something that’s promising and can double your investments in the least amount of time possible, consider Forex trading. It is a fact that Forex market is a continuously growing and ever-evolving industry. Though it is a multifaceted one, one thing that can describe Forex markets is that they are lucrative. Still, complexities and obstacles should be considered as well since the market won’t just hand you money for simply investing your money and time on it. Arriving well prepared, skilled and knowledgeable will help you protect your investments as well as increase the potential for revenues.

It is highly recommended to go for appropriate consultation with a financial adviser and educate you regarding the trade. If after the consultation you are ready to step into the plate, you will need the guidance and expertise of a good Forex broker by your side. You can’t initiate trading foreign currencies without the help and services of a broker, especially as a novice. Remember, even the most skilled and experienced traders and investors can still make erroneous decisions that can cost significant amounts of money. Though it is quite important, one shouldn’t rush towards finding and choosing a Forex broker. You need to guarantee that the broker that you want to employ is listed among the premier Forex broker directories.

Employing a reputable and reliable broker isn’t something that magically happens overnight. You will require devotion of your time, effort and attention to look for someone who can render you with the most suitable service for your needs. One should realize that in order to find and work with a good broker, you’ll first have to know what a good broker does and how they work so that you can make educated decisions.

If you don’t desire to spend huge amounts of your time and attention looking for a good Forex broker, you will need to tap into the right sources accessible online. A fast online search will bring you a variety of brokerage firms that will enable you to bypass the hassles of finding sources and leads through manual search options. Furthermore, you can make your final decision reliant upon the rankings that are rendered by a few independent agencies.

There are many benefits entailed from hiring a Sunbird forex broker. One is that you are partnered with a professional whom will act as a mediator between you and the buyer or seller of the foreign currency, making lines of connection easier and proper. Another is that you are educated by the broker on key trading strategies and help you make more profitable and educated decisions.

Thinking about FX trading from home ? 5 Common FX trading mistakes to avoid

Trading forex is simple, but it’s not easy. There are only a handful of currency pairs that are traded by most forex investors. However, the nuances of trading in this market are almost infinite. Before you make a single trade, make sure you understand the basics and avoid these five common FX trading mistakes.

Don’t Trade Forex Like You Trade Stocks

Stock traders often employ something called “averaging down.” This strategy is used when a stock position moves against the investor. For example, an investor buys 1,000 shares of a stock for $20 a share, and the share price drops to $15 per share. The investor may buy more of the stock at $15. When his 1,000 shares at $20 are averaged in with his new share purchases at $15, It produces an average share price that is higher than $15 but lower than $20.

Normally, this is a good thing because the stock trader expects to recover any losses. When he does, he realizes a higher average gain since his cost basis is lower. In forex, however, the market is much larger. The market can move against you and remain in an opposing trend for longer than you can remain solvent. Don’t average down when trading forex. Instead, rely on stop losses to maximize your profit.

Set A Stop Loss

A stop loss is like a safety net. Imagine working on a scaffolding 10 stories in the air without a harness. You might be fine working up there for a while, but the first time you lose your balance and fall, it’s all over. Stop losses limit your loss in the markets so that one bad trade doesn’t wipe you out completely. Use them. Instead of wiping out your entire account, you’ll only suffer small, recoverable, losses.

Stop losses also help to increase your gains. Since you are limiting your losses, you can use this strategy to buy back into the market when the trend reverses and exceeds your original stop loss amount.

Don’t Try To Trade Right After Late-Breaking News

New does affect markets in a dramatic way. However, it’s not always clear how the markets will react. Don’t try to out-think the market. You can’t do it. Instead, wait for a trend to develop. Then, trade on the trend. New forex investors tend to mistakenly believe that late-breaking news stories will have an immediate and predictable effect on the markets.

Often what ends up happening is that the market reacts somewhat unpredictably at first. Disruptive news reports often cause a “whiplash” effect, market orders and stop losses are triggered, exacerbating the issue. If you try to trade on this kind of movement, it’ll be like gambling in a casino.

Wait For The Trend, Forget Revenge

You’ve probably heard the phrase “don’t get emotional when trading.” It’s helpful advice, but many newbie traders ignore it. When you lose money, it’s understandable to want “revenge” on the market. However, the market doesn’t care how much you’ve lost. Revenge trading often involves increasing leverage or investment position to make up for previous losses.

This is an incredibly dangerous strategy. You risk losing even more money because emotions can easily cloud your judgment making it impossible to make any objective investment decisions. Instead, wait for another trend to develop, and trade on that trend. Forget your emotions for a moment, and rely on the goals and rules you initially established prior to trading.

Know When To Cash Out

There’s an old Kenny Rogers song, called “The Gambler” It contains advice that’s actually useful for forex investors. “You have to know when to hold ’em, know when to fold ’em. Know when to walk away, and know when to run.” New forex traders sometimes have the problem of “knowing when to fold ’em” and “knowing when to walk away.” When the market turns against you, don’t let your losses run all the way to your stops. Thinking that you can “handle” the downs and that the market will rebound is a fallacy. The market may rebound, but you’ll be out of money before it does. Walk away from losing trades, and don’t get involved in market trends where you know you can’t win or where winning is improbable.

About the Author: Guest post contributed by freelance finance writer Elizabeth Goldman on behalf of Sunbird FX the specialists in currency trading and trading oil CFDs.

How To Raise Capital For Your Business When Your Bank will not Help

Raising capital for a business seems like it should be pretty straightforward. It’s not. Banks often want you to post significant collateral for your business. If you’re just starting out, you probably don’t have anything that the bank can hold as security for the loan. While that might seem like a major roadblock, you can overcome this by raising capital through other sources.

Angel Investors

Angel investors are people who invest in businesses in exchange for a share of the profits that you generate. These investors are always accredited investors and act as either direct advisers for your company or as major shareholders. You have to be incorporated in order to attract angel investors, but many companies exist to make this process easier for you.

For example, the Go BIG Network Investors’ Circle are networks that connect you to angel investors. Inc.com also publishes an updated database of angel investor networks so that you can stay focused on developing your business.

Reverse Merger

Going public is one way to raise funds for your company. By going public, you can issue shares of your company to the general public, and investors will buy those shares from you. The money you get from those investors can be used for any business-related purpose. Of course, investors become part shareholder in the company, so you’ll need to work for your investors’ best interest by growing the company.

Shareholders can also vote on who remains on the board of directors and can affect the direction of the company indirectly through this type of voting. While going public is often expensive, there is an easier way to do it than issuing an initial public offering (IPO). It’s called a reverse merger. A reverse merger is when you purchase an existing public company that has failed, but is still public. Once you buy the company, you structure it so that it buys out your existing, non-public, company. The result is that you now own a public company and can sell shares to the public and raise the funds you need.

Peer-To-Peer Lending

Peer-to-peer lending is a relatively new form of lending when compared to traditional banking. It refers to the process of borrowing money from private investors, using a traditional bank as the intermediary. Companies like prosper.com exist entirely for this purpose. Investors sign up to the website and loan money to promising borrowers.

The loans are typically repayable within 3 years, but you may negotiate the interest rate on the loan. After you place a loan listing, investors bid on your loan. The bidding process is part of the funding process. With each bid, your loan becomes partially funded. An investor may contribute $50, $100, or $1,000 or more towards your total loan amount. Instead of one bank funding your entire loan amount, many investors make a partial contribution to your loan. When your loan is fully funded, the financial intermediary sends the money to your bank account via a direct deposit transaction.

Factoring

Factoring is similar to a cash advance. A factoring company advances you money based on your current accounts receivables. In other words, you sell your invoices to a factoring company, and that company advances you an amount of money equal to 75 to 85 percent of the total value of the invoices. The factoring company may also charge you a fee on top of the discounted rate it advances you. This is a good option if you need liquidity now, or your company is starved for cash and it normally takes you a long time to collect on your invoices.

About the Author: Guest post written by Elizabeth Goldman and brought to you by Wonga – the short term loan experts.

How to Deal with a Bad Credit Loan

Every single day, millions of Americans struggle with the issue of having bad credit. A bad credit reputation, along with a bad credit score, can have negative impacts on a person’s life. It can prevent one from buying a home, vehicle and even from getting a job. However, all hope is not lost when you are in financial dire straits. This is because it is in fact possible to be approved for what is known as a bad credit loan.

If you are seeking a loan when you have bad credit, one thing to keep in mind is that you will charged a higher interest rate. This is because you are generally seen as a poor risk due to your bad credit history, and the lender knows that. It is somewhat of an incentive toward getting their money back. This is typical of an unsecured personal loan.

When you apply for a bad credit loan, there is some chance that the lender may take sympathy on your situation. Scenarios that are good examples of this include losing your job, recently going through a divorce and relocating to a new city or state. In some cases, your lender may reduce your interest rates if you fall under any of these categories. There are also different types of loans available for individuals with bad credit, so be sure to inquire with your lender about your options.

However, you might also possibly qualify for a secured personal loan as well when you have a history of bad credit. These loans may be more attractive to certain individuals due to the fact that they carry interest rates that are considerably lower than those of unsecured loans. You can generally qualify for a secured loan when you put up property, most often your home, as collateral toward it. You can borrow as much as 125 percent of the property value with this type of personal loan.

There are plenty of companies listed online that will offer individuals bad credit loans. However, it is wise to do your homework and check them out. Ensure that the organization is accredited by the Better Business Bureau, and always call them and make sure to speak to a person.