Finance & Loans

Don’t let debt control your finance and your life

An average family has a credit card debt of $7,000 according to published reports. However, given the economic slump that the entire world is facing, personal debt is rising at a faster than normal rate. As a result, the U.S. consumer debt stands at more than a trillion dollars.

Temptations are all around us. We get pre-approved credit card offers in the mail every day. Most of us carry more than one credit card and we get convenience checks with our monthly bills and closer to major holidays such as Xmas. So, keep in mind, it is not your money; if you charge anything to your card you have to pay it back; if you are unable to pay the full amount due and you pay only a portion of it, you will be charged interest on the balance; and if you are late paying, you will be charged a late fee.

Your debt not only controls your finance it also control your life. If you are unable even to make the minimum required payment every month, you will be worrying about your debt allowing your debt to control your life. So, think twice before using your credit card.

Family Dental Insurance: Where to Get it

A family dental plan is a lifesaver in any family. Dental care is a daily need just like any other health need for the family. There are routine dental operations like loose teeth that need pulling, that could be done at home.  More complicated care like crown filling would require the attention of a good dentist. Even more complex operations like surgeries will require a team of dental surgeons and the cost that go with them. Not many will afford to pay for these operations out of pocket and that is where insurance comes in.

Getting a family dental health plan need not be expensive. There are many affordable insurance plans out there if you know where to look. The problem is that information on insurance is not very common and you really have to look for an expert opinion on the subject. An insurance attorney could also be of great help. Much of insurance speak is covered in legalese and a lot of ifs and buts that could really confuse you. It is always good to know what you are getting into.

The web is a good place for research. A simple search for affordable dental insurance plans will turn out huge volumes of information. You will find all kinds of offers and bargains, many genuine and some not so genuine. Read through them carefully to see what you are looking for. Get the one that covers as much as possible for reasonable cost, but if is too good to be true think twice.

Rating agencies

More than 97 percent of the global ratings come from three companies that dominate the rating industry. They are Standard & Poor’s (S&P) owned by McGraw-Hill, Moody’s Investor Service and Fitch Ratings. They have an immense influence over the $40 trillion global debt market including corporations, sovereign, municipal and structured finance. A good example to show their influence is the down grade of the U.S. sovereign credit rating in August 2011 that resulted in $9.7 trillion loss in global equities for the last quarter of 2011.

They rate corporations, sovereign, municipal and structured finance. They analyze every new debt issue of the above for credit worthiness. Since no government wants to assume the responsibility of ratings, the big three holds enormous power and responsibility.

However, they are not immune to criticism. The big three rated the now bankrupt MF Global as investment grade a week before its bankruptcy filing which was unable to account for $1.2 billion of investor funds. Additionally, they rate banks, municipalities, and companies that pay for their service creating a conflict of interest. The Dodd-Frank financial regulations adopted by the U.S. set limits on activities of the rating agencies in order to address the conflict of interest issue.

Tips on Getting a Dental Insurance Plan

Getting dental insurance is like torture to many people. The imagination of the dentist’s shrill drill and the discomfort of getting a dental check up makes them switch off at the mention of anything dental. However, dental insurance is as crucial as nay other insurance cover. it is very useful when one needs a dental operation that costs  more than can be afforded from the pocket.

When shopping for the best dental insurance plan, go for one that gives the freedom of choice in health providers. Some insurance providers lock the insured to certain practitioners. Many people are comfortable with their long time dentists and find this disconcerting.  Secondly look into what the cover provides. Does it include more than routine check ups? For example, the plan should cover crowning and root canals in addition to X-ray examination.  Preventative operations should be effectively covered too. The flexibility of the cover is also very crucial. Consider whether the plan covers the other members of the family or just an individual.

The cost of the dental plan should also be looked into. Low cost dental plans are good for routine dental check ups and operations. The cheapest plan however, is not necessarily the best. Get a balance between the premium prices and the operations that the dental insurance plan can afford.  The right balance means that in case of a major operation, you are effectively covered.  There are affordable discount dental plans that can effectively cover you if you know where to look.

How to establish credit

If you are starting after your college or if you just arrived in U.S. on permanent resident visa, you need to establish a credit history in order to obtain a mortgage or other type of financing. Here are some practical ways that you can start.

Open a bank account: This will assist you in creating a financial history. Some banks may even consider giving you a credit card provided that you deposit certain amount in a savings account and keep it for a specified period of time.

Establish a residential history: If you are starting fresh, you don’t have to own a home. You can rent an apartment or a home depending on your financial capacity and needs. Make sure to pay your bills on time. Establish utility accounts in your name and pay those bills on time. If you completely miss or pay your bills late, utilities may report to credit agencies creating a bad credit history.

Get department store cards: This is a great way to establish credit. Make your monthly payment on time. Do not pay the entire balance. Stretch payments in an affordable manner in order to establish credit. This will also help you to create a credit history.

Benefits of Accepting Credit Cards

If you are an online trader, accepting credit card payments is not a luxury but a necessity. This means online credit card acceptance is mandatory for anyone looking to make meaningful revenues online. The other methods of payments are just too slow and inconvenient for business. Credit card payments make your business truly global. With a good merchant service, you can sell to almost anyone, anywhere on the global. This translates to more revenues and hence profits. Amazon is a good example of what you can achieve in this way.

For those operating a brick and mortar store, credit cards is also a necessity. With a few equipment and the right merchant services, you can also take payments from credit cards. A wireless credit card terminal, a point of sale machine and the right software are all you need. For a physical store, sales also improve as many customers who come in often do not have enough cash. This makes your store popular with those who prefer to carry plastic money. It is also safer as in the case of a holdup there is less cash to be carried away.

Getting a good merchant is what will make or break your credit cards acceptance. A good merchant gives you total services from verification, connectivity, to transfer of funds.  The choice of a merchant should be made carefully. Security should be a concern as money is involved and many people would want a share of it illegally. Also ask for a bonus for using his services. Like a free credit card machine.

How European debt crisis could affect you

We’ve been hearing enormous economic problems with Greece, Ireland and Portugal for quite some time now. Eurozone is dealing with Greece’s debt by extending bailouts at enormous cost to member nations.

U.S. banks are heavily invested in Eurozone and other European countries. Great Britain accounts for about $700 billion of U.S. bank investments while $300 billion invested in France and Germany, $50 billion each in Italy and Spain. The Bank of America has a $16.7 billion exposure to Greece, Portugal, Ireland, Italy and Spain. These five countries are the most talked about risk of loan defaults. Other major financial institutions that are exposed to Europe or Eurozone debt include Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley. In order to accommodate for anticipated European debt default, banks and financial institutions could further tighten credit to U.S. customers.

If you have a 401(k) plan or if you an individual investor with an exposure to financial sector, you are in for a substantial cut if any of the Eurozone or European country default on their loans.

Eurozone and European debt crisis is sending the U.S. stock market on a rollercoaster ride. This affects all our retirement as well as non-retirement investments.

How Many Retailers Accept Credit Card Payments

All of the online retailers accept credit card payments. Plastic has become the new green. If a place does not accept credit card payments they will more than likely miss out on a bunch of money because a lot of people do not carry cash. Online credit card acceptance is something that is a must. However, it seems now people who want to remain safe are switching to other payment methods such as PayPal. Ecommerce credit card processing is something else that is becoming well known as well.

Overall, we all use credit cards on daily basis. They allow us to make bill payments online so we do not have to spend money on money orders and hope that they make it in time. Other payment methods are available of course but many people do not use them because swiping a card is so much easier than counting cash in a room full of people.

Back in the day when places accepted credit cards they would charge a fee. However, stores no longer charge fees but some bill payment options may you pay a fee if you pay with a credit card. Overall, credit cards are something that is a big part of many people’s lives now. You can basically say that they are here to stay. They make people feel safe and it is a better way to keep track of your money than if you carry around cash. You can see exactly how much money you have by keeping track of your account online.

How credit score is affected by closing credit cards

If you are trying to cut down on expenses and pay off your credit card debts you think that closing credit cards is a good way to get started as you will not be accumulating more credit. But closing your credit cards will have a negative impact on your credit score. How does this happen?

A key factor in determining the credit score of a person is the credit to debt ratio. A person who uses less than 30% of the credit available to him will get more points towards his credit score than a person who has used a higher percentage of the credit available to him. Therefore having more credit cards mean that you have more credit therefore lowering the percentage you spend.

Another factor affecting the credit score is the credit history. Longer the history the better it reflects on the credit score. Therefore closing the oldest credit card means you are closing a part of the credit history.

One needs to weigh the pros and cons of the above situations, if you have no control over your spending you are better off closing the card rather than accumulate more debt or continue paying high annual credit card fees.

Why Process Credit Cards Online

Many merchant process credit cards online so they can insure that they do not miss out on any business. By them doing this it makes more people want to buy their services or products due to the fact that credit cards seem to be the new cash. When trying to buy something online these days or even in the actually store it seems rather odd if the merchant does not accept credit cards because this is the way many people keep track of their cash this day in time.

A legit Merchant services provider will understand the need for them to accept credit cards. If they do not accept them they will miss out on a lot of money. It does not matter how low their rates may be if they do not have this method of payment available customers will pay a higher amount for a product simply because the merchant provides them with the total merchant services that they desire.

Over the years so many things have changed as far as to how things go when one is purchasing goods and services. Back when all these things first came into effect people would only accept cash because no one knew about bank atm cards and credit cards. However, now it seems that everyone has a credit card even if it is nothing more than a prepaid credit card. The sad fact of the matter is some children even have credit cards but their parents feel that it is a better way for them to manage their money so be it.

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