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In A Fix Over The Right Way To Choose A Credit Repair Company? We Have Some Solutions For You!

Money is a very serious matter that needs to be handled very carefully by everyone. There are several debates over the issue of how to manage the monetary assets decently, how to make safe investments, how to earn profits, etc. 

Life is very unpredictable and can throw anything at you at any given point in time, and sometimes you are not well equipped to handle it. The base of anything in this world is money, something that is always required no matter where you find yourself in life. 

So, it is very important for everyone to have savings and be prepared financially for everything that life has to throw at you. But sometimes, it may also happen that the savings do not prove to be enough, and the situation is adverse to the point where you have to take a loan from someone else. This loan is also called the credit that has to be returned to the person from whom you have taken the loan with the interest amount in a fixed period of time.

What is a credit repair company?

Sometimes what might happen is that there might be some mistake in your reports that includes all your credit information, and this may lead to making rectifications as the rates applied are higher by mistake, and you have to pay higher interest on that amount as compared to what was expected before. So, repairing this problem is necessary as it would allow you to make profitable deals and save you from incurring any losses. 

So, there are companies that are called the credit repair companies that help you fix your credit-related problems in your financial reports and save you from any trouble. So, if you are facing any such trouble, you need a credit repair company to go to. But choosing the right one amongst all the available ones is also a task in itself. So, to help you make the right decisions, there are some questions you need to ask in order to find one according to your needs and liking.

Questions that need to be asked before selecting a credit repair company

  • Is the company reliable and in the industry long enough to be trusted?
  • Does the company have good reviews and word of mouth from people?
  • How much will the company you choose charge you to repair your credit, and is it affordable?
  • Does it provide services in tune with my needs?
  • What is the accuracy of the work done after you make the payment to the company?
  • What are the knowledge base, the experience, and the license obtained by the company?

So overall, it is very necessary to ask these questions before you choose the right credit repair company for yourself and should be thorough with the fact that is this company going to help me or increase my hassles. Therefore, everyone needs to be asked to themselves after gathering all the relevant information, and only when the answer is in the optimistic department should one finalize the company.

Successful Internet Marketing With The Right Mindset

Out of all the components it takes for an individual to develop into being successful at their Internet marketing business is their mindset. This essential key is one that is greatly overlooked, having or developing an effective mindset. The truth of the matter is it may be ignored, overlooked or simply forgotten by a majority of individuals as something with little importance to their online business success. Oh how far from the truth that way of thinking will end up being for those who do. It can be a hard lesson learned that with out developing the right mindset the chances for success are very slim. What are some of the effective mindsets of successful internet marketers? If you would like to discover a few continue reading the information below.

A requirement for success as an Internet marketer is having the ability to to know what they are doing, why they are doing it and where they want it to take them. It doesn’t require an individual to have to be able to see the future in a physical sense, simply an ability that will enable them to measure ahead of time where you will need to concentrate their hard work and efforts to be the most productive in their Internet marketing business. The mobile boutique will help you to concentrate on the hard work. You will get success according to the expectations and needs. The services are excellent with the implementation of the correct tips and tricks. The future of the online website is the best with great results.

However, before it is possible to determine a plan or what is ahead of you, you have to learn and develop the mindset associated with a productive online marketer. This particular mindset is actually made up of a variety of thought processes or ways of thinking and doing things. Below I will discuss only some of the more important ones just to get you started.

Having trustworthiness and being genuine

In my years of marketing online one of the first things I discovered is it pays to be trustworthy and sincere. You won’t find long term Internet marketing success by being dishonest and insincere or by being a fake or con artist.

Even though the Internet marketing business has picked-up a reputation in some circles as being full of individuals who will sell anything including lies to make a buck my observation has been that most folks in this business are honest as the days are long and understand that being trustworthy and sincere are a cornerstone to long term success online. So be aware and know clearly that it never pays to start a business out with dishonesty.

While it may be true that money can be mad by by using deceptive marketing methods, strategies and dishonest sales tactics, this is not only bad for the business as a whole but because you can’t build a successful business using such practices won’t last..This may sound corny but it is true the Internet marketer that build his business by being honest, trustworthy reliable will gain long term success and a positive brand, as opposed to the cheater that lurks online dodging their way from facing legal consequences.

Willing to try different things

You will rarely find an Internet marketer that has success in their business who wasn’t afraid to try new and different things in their business. You can sit back and study for months even years regarding how to master the methods and techniques in running a high profit online business system but unless you are willing to try it out by putting what you have learned out there to work it will all be worth nothing. You won’t really ever know if what you have learned really works or not unless you “get down in the trenches” so to speak. The honest reality of it is there has not been found yet one definite road to total Internet marketing success. The best thing anyone wanting to do well in this business can do is to simply jump in, get involved, test the waters and get a feel for the business. This is one way to quickly find out what actually works and what doesn’t. Another advantage of trying new things is that you also learn because things don’t work, you use that experience to know better next time.

Think over mistakes and grow because of them

When you experiment and try new and different Internet marketing techniques and methods you are guaranteed to fail sometimes, but you shouldn’t simply throw the newly tried idea or method away forever.

The main idea for you trying out new things anyway is that you want to see if they work with your business, how well they work or if they don’t. You learn by the mistake by thinking it over and finding out where you went wrong and why. This may take a little research or investigation on your part but will pay of down the line.

That is why this mindset is a main key to your internet marketing success you have to be able to pinpoint the mistake, figure out why, when and where it went wrong and how to resolve the problem or make it better.

Striving for excellence in your Internet marketing business

Striving for excellence is an essential for any successful Internet marketer, just going about your business doing tasks just good enough to get by won’t be cut it..

Reaching for excellence in your business is not impossible or difficult, it only means that you put your best effort forward in every task that you do. This isn’t something you should only do once in a while if you want your business to succeed. By skimping on the quality of work you put out, trying to get by doing less as possible, being careless and unorganized will reflect poorly on your Internet enterprise. So always strive for excellence by making sure that you put in the best work you have to offer.

There are also other benefits you get when you strive for excellence, not only will your productivity increase because you find better and more efficient methods of getting things done, but your customers will quickly pick up on your attention to detail and excellence and reward you for it ultimately with more sales and profit.

Bitcoin BTC Whale Alert Lends A Serving To Hand To Binance After 40 Million Hacking

Whilst Blockchain Week was once in complete swing and a number of other bulletins supported the marketplace, total capitalization jumped $ 245 billion for the primary time in months. The XRP is at the head of this rally, which makes massive positive aspects after trailing in the back of competing portions for many of 2019. In case you are worried, about the bitcoins or any other cryptocurrency that you own, saving them online with your torque wallet is a great option for you.

Ethereum isn’t a long way in the back of the second-biggest altcoin available in the market. [ETH], TRON [TRX], Cardano [ADA] and stellar lumens [XLM]. As in earlier years, the Consensus bubbles propelled the marketplace up, whilst the Bakkt and Coinbase bulletin additionally boosted enlargement.

XRP, at the again of Coinbase, approving the cryptocurrency for buying and selling in New York, jumped greater than 5% in an hour previous within the day. At the time of the clicking, he nonetheless ruled the marketplace with an achievement of 12.08% over a length of 24 hours. Starting at 0030 UTC on Might 14, the cost of the coin was once $ 0.323 and pumped 20.69% to $ 0.414 earlier than falling again to $ 0.384.

The following build-up started at Nine pm on a similar day because the coin went from $ 0.384 to $ 0.438. The marketplace capitalization of cryptocurrency has larger via $ 4.Five billion and, at the time of e-newsletter, via $ 18.22 billion. took the highest spot for the XRP quantity via keeping 11.22%, whilst Binance, the one inventory alternate within the most sensible 10 at “real volume”, took the 9th position with a best 2.05% in buying and selling quantity XRP.

Ethereum, which adopted final week’s large pump following a rumor that the CFTC would have had a blessing at the ETF, kicked off this week with an 8.94% pump towards the United States buck. Over the following two days, Ether broke during the $ 200 mark following a 34.73% build up. Its value was once $ 225.30, with a marketplace capitalization of $ 24.17 billion. ZBG took the first position in ETH quantity, accounting for 4.27% of general quantity, whilst Binance held the perfect ‘actual quantity’, in 27th position with 1.28% industry in ETH.

After Tesla, Justin Solar’s promise, was once “fulfilled,” Tron joined the marketplace up 9.64%. After falling to $ 0.022 on Might 10, TRX jumped 27.2% to the industry at $ 0.0288. The marketplace capitalization of the coin was once $ 1.92 billion. CoinTiger was once the most important marketplace relating to TRX quantity, with the ETH / TRX representing 8.43% of the sector quantity. Binance, as soon as once more, is the “best” marketplace of actual rank, score 12th and keeping 2.75% of the USDT quantity.

Cardano and Stellar Lumens have been the opposite most sensible winners available in the market, posting positive aspects of 8.45% and eight.96% over a 24-hour length. Ranked ninth and 10th respectively, the 2 cash have been separated via a marketplace capitalization of the best 70 million bucks. Stellar was once buying and selling at $ 0.121, whilst the cost of time within the ADA press was once $ 0.086.

It must be famous that the one Bitcoin Money that trades within the purple of the highest 10 is Bitcoin Money, which is most probably a correction since cryptocurrency has noticed an enormous build-up within the final 48 hours.

How To Find The Best Invoice Factoring Company

If you ever search on Google about factoring companies, you probably know that it’s not easy to find the best factoring company. This is because you will see many invoice factoring businesses on Google ranging in different expertise and size. You need to spend lots of hours on Google to find the best factoring company for yourself because you need to compare them as they are offering you almost the same amount of benefits. 

But which one is the best?

Every Factory company has its variety that they serve to you, but some have a special niche that they focus on, making them different. It’s simple to understand that these Invoice factory companies differ in their fee structures, programs, contract terms, and the specialties they have, but the thing that truly makes them is the reviews. You can read the reviews on the online platform by the other funding company sources, but it’s not sufficient for you to believe them as you don’t know what’s genuine out there.

Many of you don’t even know what a factory invoice company does and have some butterflies about the topic. In the following article, you will know about the factoring company Texas, how they work, and how can someone find the best invoice company for themselves. Read the article about the topic more.

About the Factoring company

The factoring companies are those companies that help the businesses who are facing problems due to the slow-paying customers by financing invoices to them. These factories companies do not lend money instead of buying their clients’ accounts at a reasonable discount to get a fund. After this, the factory’s companies hold their clients’ invoices until they pay the invoice, and they profit from it. They are useful in those industries where the decent amount of selling and purchasing of goods and services have been for 2 to 3 months and at least a month. There are so many businesses that use factoring companies regularly. Examples of these are trucking business, hospitals, staffing agencies business, Courier services business, call center operators, security services, Oilfield services business, private investigators, consulting business, and manufacturing & wholesale businesses. 

Ways to find the best factoring company

It would be best if you kept in mind that finding the best factoring company will be crucial for getting business success. Some ways that can help you find the best factoring companies are as follows.

  • Specialization in your industry

You know every company describes themselves as professionals and generalist, but you need not trust them. It would be best to find those companies with some connection with your clients in the past as it helps you strategies better. The factory company can better connect with your client base and help him analyze their payment habits easily.

  • Competitive rates

always do some research about the competitive rates going on for a company. In the factory industry, there is always a difference in the price range of different companies. Chose those invoice factoring companies that pay you more than the other companies and even up to the mark you deserve.

  • Speed of setting up the account

you need to clarify them they do the account setup as soon as possible, and they generally do it in 3 to 4 business days. The main problem is coming from your point of you because it depends on how much time you are taking to review the documents, information and how much time your clients take to acknowledge the notice of assignment (NOA).

  • Experience

you can trust the new factoring company. Still, it will benefit you more if you work with an Experienced Company as they have already dealt with so many customers that they understand things better. Also, it’s a matter of cash so, you should take care of that.

The more you research finding the best invoice factory company for yourself, the chance of getting a better factory company increases as you will judge them on a different basis. Every factoring company has its expertise in serving their customers. It depends on how specifically you explain your requirements to get the desired work from them. So when before you opt, be clear with what you are seeking. 

How To Get Personal Loans – Know the steps!!

The market for personal loans is huge offering a solution for everybody’s financial circumstances. Personal loans basically are the general term for all kinds of loan falling under the categories of ‘secured’ and ‘unsecured’.

The two types of personal loans can be differentiated by the collateral attached to it. With a secured personal loan, a security in the form of a property or other collateral is attached. Only on the basis of a security can one apply for a secured personal loan. On the other hand, unsecured loans do not require any collateral attached to it and are meant for all those who cannot provide a security.

Another major difference between the two types of personal loans is the interest rate and amount one can borrow. The loan amount with secured loan is usually more that too at a lower interest rate but the setback is the loss on the property. Bridging Loans for the businesses is possible at the electronic platform. Different types of personal loans are available and you should select the right one. It will offer the desired results to the people. The interest rate at the platform is less in comparison to the other loans.

With unsecured loans the time taken for approval is less and is a better option for smaller amount but the interest rate is comparatively higher due to no security provided by the applicant.

Now comes the important question of how to get personal loans?

All financial institutions providing loans have their own way of enquiring about the borrower. They tend to ask personal questions to get to know why you need the loan and how would you repay it. Only after enquiring about such details does the process of providing loans moves forward. The unsecured loans have much stricter credit requirements than the secured ones due to no security guarantee provided by the borrower.

Every loan that is taken has to be repaid and the financial institutions make sure of it. Every institution have their own rules and regulations besides the Government rules so to know more on how to get personal loans, the borrower should enquire about the rules, interest rate offered and other such details of the financial institution. Don’t rush to borrow loan from the first institution you visit. Take your time to choose the agency that offers best possible redemption charges, interest rate and offers easy availability of loans.

The loan term for personal loans can be from 3-25 years depending on the loan amount. It is advisable to not stretch personal loans as you may have to pay more in terms of interest. The interest rates might differ with the type of loan and the borrower’s financial circumstances.

The beauty of personal loans is that anybody and everybody can apply for a personal loan and use it in whichever way they want.

Know it all about how to secure personal loans

Everyone, at some point of time in their life, gets stuck due to lack of available finances. There are times when even, the most secured person you might know needs a little financial push for a smooth running and needs to borrow quick cash.

Borrowing loan is not such a tedious job as it is thought of. It is just another product that you buy. Before borrowing a loan you need to understand a few things that includes the market, your rights and how commercial lending works.

Once you understand the types of borrowing available in the market and the ones that would suit your requirements would make it easier to secure the funds fast.

Let’s have a look at the kinds of personal loans floating in the market and also how to get personal loans.

Short Term Loans

Short term loan as the name suggests refers to a loan amount borrowed for a short period of time and the most common one is called payday loans. The payday loans last usually for a month or till the payday. One of the quickest and easiest ways of borrowing as you can be sanctioned the loan within hours of asking for it depending on the rules of the financial institution.

To be granted such a loan, one need to be of the age eighteen or above, have a running bank account and lastly be employed with a regular income. The loan is usually repaid in a single payment on the day specified by you.

It is the easiest to get as there are mostly no credit check required and you don’t need to submit any documents or collateral.

Medium Term Loans

A medium term borrowing is usually for a period of a year or two. The two options available are logbook and doorstep loans.

Logbook loans are specifically for vehicles and are secured only on documents. These loans do not require credit check and are secured through the documents. However one can lose the car if the repayments on the loan are not regular.

Doorstep loans are available for everyone even if they are unemployed. These loans are available at your door in cash hence the name doorstep loans.

Long Term Loans

Usually measured in years and also the two types of secured and unsecured loans, long term loans are a little harder to get.

For borrowing a secured loan, collateral has to be put up in exchange and if the repayments are not on time then there is a fair chance of you losing the collateral. Unsecured loans do not require any collateral to be put up but a good credit is a must. Also, a guarantor has to take the guarantee of taking over the repayments in case you cannot keep up with the repayments.

Forensic Accounting Certification

Forensic accounting. Sounds like something out of an episode of CSI meets the IRS, right? If you think so, then you’re probably not currently looking for forensic accounting certification, but if you are–or you find after this article that forensic accounting interests you–there are a few things that you need to know.

First off, “forensics” doesn’t always mean dusting for fingerprints at a crime scene. It’s actually derived from a Latin word that means “legal” or “connected to the courts.” Forensic accountants actually work at accounting firms as legal specialists.

Forensic accountants deal with civil disputes over financial losses and damages, negligence claims, breaches of contract, and breaches of warranties, to name a few. They are also responsible for business valuation when the fair market value of a business is needed for a civil suit, such as a divorce, bankruptcy, or a dispute against the owner of the company.

Forensic accountants can deal with all of the above, but they often have specialties, particularly in large accounting firms. Other forensic accounting specialties include fraud, personal injury, insurance claims, royalty audits, and construction suits.

So although forensic accountants don’t show up at murder scenes, forensic accountants have their share of the intrigue of bringing criminals to justice, albeit a different kind of criminal. Forensic accountants are often called to testify in court, either to share their findings on a specific case or to give an expert opinion on the case as an unbiased evaluator.

How does one become a forensic accountant? You need special training and forensic accounting certification before you can start practicing as a forensic accountant. Unlike with more general areas of accounting, where CPA (Certified Public Accountants) certification is recommended but not required to practice, as forensic accountants work in courts, forensic accounting certification is required. This kind of accountant should also be able o us accounting software and modern tools such as Xero cloud accounting software service. This is also another measurement how effective and reliable an accountant is.

You typically need at least a bachelor’s degree in accounting as a starting point for forensic accounting certification. There are many specialty master’s degree programs that will help you get the educational background you need to apply for forensic accounting certification.

Your forensic accounting professors can help you navigate the CPA forensic accounting certification requirements to help you start practicing forensic accounting law! The forensic accounting certification requirements include 150 semester hours in forensic accounting education and an examination.

Ask your forensic accounting certification professors about becoming a member of the American College of Forensic Examiners ( You’ll be able to attend lectures, read journals, and meet with other forensic accountants to discuss the latest changes in the law.

There are only a few thousand people with forensic accounting certification in the United States. There’s a big market for forensic accountants and not enough accountants with forensic accounting certification! If you’re excited by numbers and figures and you like digging through the minutest letter of the law, you should aim for forensic accounting certification!

Accountants and What They Do for You

As a person with a big heart and a desire to help others, I have searched for a long time for a career that would pay me to help others. I went through a long list of the common careers that help people and studied them thoroughly. As I went through the list, I concluded that none of them suited me. Before beginning at Ivy Tech, I had an epiphany. My career choice didn’t have to be the typical “helper career”. I could choose anything as long as I tailored it to fit my wants and needs. I plan on pursuing a career in accounting and starting a tax preparation business that is designed to help the needy. I want to do people’s taxes for a fee that is lower and based on their income so they can afford it. I finally chose to pursue a career in accounting for the following reasons: it fit my skills and talents, it pays well and has a good employment outlook, and it doesn’t require as much education as many careers do.

An Accountant is a person who is responsible in some way for the finances of an individual or organization. They file taxes, keep financial records, and do other tasks related to finances (Bureau). As a person who is strong in mathematics, I knew that I should pursue a career that dealt with mathematics (Learn). I thought about computer programming and engineering, but concluded that they didn’t fit my personality as well as I would have liked. When I really sat down and thought about it, I realized that I already possessed the qualities of an accountant. I am an ethical person and I do not like to cheat people or to see others cheat. This is a big deal for accountants because as they fill out federal tax forms, they need to be ethical (CareerOneStep). I am also skilled in problem solving and providing customer service. Accountants need to be skilled in these areas as well (CareerOneStep). Hence, if you need to hire the right accounting service for your company or small business, make sure to consider several factors. Ideally, reliable and professional accounts in Singapore accounting service always proves the best services in the industry. So make sure to make them as your standard and basis when hiring an accountant for your company.

Another aspect of this career that led me to choose it is that it pays well and has a good job outlook. According to the Bureau of Labor Statistics website, an average accountant in the United States earns around $54,600 (Bureau). In Indiana, the average is around $51,000 (CareerOneStep). The salary of Accountants is expected to rise in the future. Within the last 2 years, the average salary has raised approximately $2000 a year (Bureau). Since Accountants are primarily responsible for helping clients file taxes and keep financial records, the job of an Accountant is not likely to decrease in the future. According to the Bureau of Labor Statistics website, the employment rate of Accountants in the United States is expected to rise in the next 10 years (Bureau). The only foreseeable reason that Accountants may not have employment in the future is the increase in financial tools for non-professionals online.

Careers in Accounting often do not require much education. For what I want to do, for example, I would only really require the knowledge of tax filing and businesses. Many clients would probably not appreciate my lack of knowledge in Accounting; therefore, I plan on obtaining at least an Associate’s degree in Accounting and possibly a Bachelor’s degree. According to the Bureau of Labor Statistics, most Accountants have at least a Bachelor’s degree and a CPA license (Bureau). A Certified Public Accountant, or CPA, is required in every state in order for an Accountant to work for a public corporation or for the government (Bureau). As many business careers require a Bachelor’s degree and sometimes more, I believe that Accounting careers do not require too much education for me to complete.

Financial Advisor V/S A Registered Investment Advisor

A financial advisor is an educator who has in-depth knowledge of the financial sector. Whenever a person wants to buy the land-based property, they contact a financial advisor for more information. They know about the market situations and have excellent future predictability skills. It would be best if you always searched for a financial advisor who provides accurate information. Don’t worry if you are facing any problem in finding the advisor. Now you can seek a financial advisor near me to get a list of all the financial advisers at nearest. 

Now another term is a registered investment advisor. The job of the investment advisor is to provide knowledge of the share market. Some people want to invest their money into shares, so they need a genuine investment advisor for more details. If the person is not having sufficient knowledge about the share market, they should always advise experts.

The role of investment advisor representative

An investment advisor gives all types of information regarding shares and securities. They charge a particular amount of money from the customer, which is called brokerage. It would be best if you always preferred a licensed investment advisor to provide you accurate knowledge and tips. Now let’s discuss the two major roles of an investment advisor.

  • Provides knowledge-

The mean aim of an investment advisor is to advise their clients. They have studied the market fluctuations and securities to predict the future of the share market easily. If you are a newcomer, you cannot profit in the share market without seeking help. With the help of an expert, the person gets to know more about the shares. They can purchase the securities according to their budget. After a point of time, the person becomes independent and can deal at their own. So they have detailed knowledge about each type of share which is available in the market.

  • Brokerage is the real income

The amount given by the customers as a brokerage is the income of an investment advisor. They charge money from every person no matter they are interested in investing money in shares or not. If you are asking anything from the investment advisor, they will charge a fee. No one provides accurate knowledge without charging any fees. People quickly pay their brokerage money because the advice helps them to yield more profits. Some people think that they can invest on their own without taking expert help. But end up facing lots of losses. So, in the beginning, you should always seek the advice of an investment advisor as they will help you choose the right shares and securities.

To sum up with

Here, we have mentioned the detailed definition of a financial advisor and a registered investment advisor. Moreover, you can say that there is a minor difference between them both. The only difference between them both is their area of expertise. After reading the points mentioned above, you can know more about the role of investment advisor representative.

A Dollar Rally Based on Risk Trends Alone May Not Last for Long

It is difficult to forecast where the markets will be in a month or three months when volatility is as high as it is today. However, when measuring the quality of a trend; it is imperative to gauge the fundamentals that will carry the US dollar that far out to better ascertain the stability and duration of the incredible rally that the benchmark currency has carved out since the second half of January.

The Economy and the Credit Market

It is difficult to forecast where the markets will be in a month or three months when volatility is as high as it is today. However, when measuring the quality of a trend; it is imperative to gauge the fundamentals that will carry the US dollar that far out to better ascertain the stability and duration of the incredible rally that the benchmark currency has carved out since the second half of January. While there are a few fundamental signposts traders can point to when they are looking to qualify the greenback’s current bout of strength (the relief in a positive turn for NFPs or perhaps the better than expected 4Q GDP among other things); the real driver for this move is underlying risk appetite. Any doubts to this view can be cleared up by a quick review of the incredible correlation between all the major asset classes (on both sides of the risk spectrum). The US dollar is both a safe haven currency and its extraordinarily low market rates made it an ideal source of funding for the carry buildup through 2009. Both of these roles work in the benchmark’s favor now that sentiment has faltered and the effort to unwind extended yield positions is underway. Yet, the current correction in the market and underlying risk appetite will not last as long as the preceding build. The economy and rates are return are improving, just at a tempered pace. The value of dollar in euro is also improving. The foreign exchange is getting stable and the over all global economy is expected to boom in the long run. A point of equilibrium will be found within the first quarter; and valuation from there will rest with rates and economic progress. On that front, the dollar sits on a relatively strong recovery but Fed hikes look to be far off on the horizon.

A Closer Look at Financial and Consumer Conditions

The fissures that have developed in the global financial market have turned into panic-inducing cracks. Like the Dubai World reaction this past November, market participants are now fearing the potential fallout from the European Union’s financially ailing members. Greece has been at the front of the media craze; but Spain, Portugal and others are suffering just as much under the strict rules of the collective. Given how interconnected the markets are, a serious problem any one of these economies or for the Euro Zone in general could create global shocks. However, these aren’t the only threats. Japan’s credit outlook has been downgraded, the UK is facing a general election and the US is struggling to work down its record deficit.

The world’s largest economy is roaring back to life – at least that is what the casual observer would deduce from the 5.7 percent annualized pace of growth reported in last week’s advanced 4Q GDP reading. However, a critical look at the data offers a more realistic view of the United States’ recovery. The first consideration is that the annualized figure is a comparison of conditions during the same period a year ago. Considering the pain the economy was in during this time, current activity levels do seem to be running at such a breakneck pace. However, a realistic view of the economy can be found in the tempered pace of consumer spending, the Fed’s report of tighter lending conditions and the 10 percent unemployment rate.

The Financial and Capital Markets

The financial markets were shaken this past week. While the period would start off on a strong foot as the traditional benchmark assets would attempted to retrace some of the late-January losses; Thursday’s incredible plunge in sentiment and asset prices ushered in what may be the next wave of a larger bear wave. During this single day, the dollar pushed to its highest levels since July, the Dow Jones Industrial Average suffered its biggest single-day decline since July 2nd and gold caved over 4 percent. The severity of these moves is not a reflection of short-term catalysts but rather the long-term fundamental imbalance that had developed through much of 2009. With the return of speculative capital following the financial crisis of 2008, investors were looking to put their money back to work; but there is a relative bottleneck in terms of liquidity and price reaction. The influx of funds forced prices higher without the fundamental back to support the subsequent levels. Therefore, at the first sign of instability, investors that are already comfortable with cashing out will look to preserve profits or investable capital and send the financial markets on a rollercoaster.

A Closer Look at Market Conditions

Thursday’s epic declines brought the primary capital markets a big step closer to establishing a larger bear trend. The Dow’s channel break is now threatening 10,000. Gold has cleared three-month support near $1,075. Crude is just on the other side of the rising trend going back to the first quarter of 2009 now at $72.50. There are more than a few important securities that have already crossed the line; but these benchmarks all need to make their moves to crush all doubt that the bears are in control and investors have to move in to protect their accounts. It shouldn’t take long to confirm whether Thursday’s move was the catalyst to a bigger wave.With Thursday’s plunge for capital markets and the mass withdrawal of speculative capital, it comes as no surprise that risk premiums have soared. The traditional indicators are all responding as expected. The CBOE VIX jumped over 4 percentage points to 26 percent and the DailyFX Volatility Index has itself spiked. However, these indicators are highly reactive and correct on a dime. It is the two-month high in corporate default swaps, the surge in risk reversals and the influx of capital into government debt (of those countries which are not at immediate risk of default) that offers the true reading of sentiment. Under these conditions, dramatic things can happen.

Why Keeping a Higher Interest Rate Sometimes Makes Sense

Conventional wisdom often tells us that when given the choice of paying between debts, we should apply the payments to the highest yielding (i.e.-most expensive) interest rate debt. However, I think that is an antiquated way of handling your finances. Here’s why.

Let’s assume I gave you $20,000 that had to be applied towards debt. In your personal scenario “A” you could take the money and pay off a new acquired car note of $20,000 that bears an interest rate of 3.5%. The other option, scenario “B”, would be to take the $20,000 and pay down your $200,000 mortgage that bears an interest rate of 6.5%. Furthermore, if you made that down payment, it would allow you to reduce your current mortgage rate from 6.5% to 4.5%; a full 2% reduction! What would you choose?

I can tell you many of the people I speak to would quickly jump at the chance to reduce the mortgage so they could refinance. However, let’s actually look at the numbers and see what makes sense from a cash flow standpoint. You can use any standard loan amortization calculator on the internet to run these examples.

It is also important to carefully choose the money lender that you would seek help from. Most of these businesses really offer high interest rates for the amount of money that you borrow. So make sure to choose a reliable money lender to avoid any trouble and frustration in the future.

If you take a $200,000, fixed rate mortgage at 6.5%, the principal and interest payments are $1,264.14. Likewise, if you take a $20,000 auto loan at 3.5%, the principal and interest payments are $363.83. This gives you a grand monthly total for the two debts of $1,627.97. Now, let’s see what happens when we apply my generous $20,000 gift.

Under scenario A, the car note goes away, so you are left only with the monthly mortgage payment of $1,264.14. Under scenario B, the car note stays at $363.83. However, the new mortgage is now $180,000 fixed at a rate of 4.5%. This translates to a principal and interest payment of $912.03. This time, the grand monthly total for the two debts of $1,275.86.

How is this possible? You reduced your mortgage balance by $20,000 of higher interest debt and dropped your interest rate on the remaining balance by a full 2%! Yet you are still paying more money every month under Scenario B. It seems counterintuitive to keep a mortgage loan that has a higher interest rate and pay off a low rate car loan.

The key here is the amortization period of the loans. You are, without question, going to pay less interest on the mortgage over time. However, if you are look to maximize your monthly cash flow, it will almost always make more sense to eliminate shorter amortization loans. Reductions of long amortization period loans, even when substantially reducing the interest rate, simply don’t have the same impact. When you are developing your debt reduction plan, this is an important concept to remember.