Nov 18, 2008

Debt Information

    • Debt Help USA No matter what your financial problems, there are methods, means, and if required, Certified Credit Counselors available to provide you with a fresh, stress-free beginning.
    • Debt Comparison According to the Federal Reserve, 43% of American families spend more than they earn.
    • Debt to Income Ratio Your debt to income ratio is another indicator of your current level of indebtedness and the potential you may have for future debt problems
    • Debt Management Debt management runs the gamut from creating a budget to filing for bankruptcy but in every case you must begin with an honest look at your debt problem.
    • Debt Management Budget A budget will provide you with a cold, hard look at your financial situation and is recognized as the first step in effective debt management.
    • Debt Warning Signs In addition to your debt to income ratio, there are several warning signs that it may be time to seek professional help.
    • Debt Consolidation When you consolidate debt, you usually combine several high-interest debts into one debt management plan payment at lowered interest rates
    • Credit After Debt Consolidation Pay your bills on time. The credit scoring system first considers your payment history
    • Recently, Bank of America purchased credit card firm MBNA and Citibank began gobbling up retail store cards. Only the future will tell how this will affect consumers
    • Consumer Debt Some consumer debt statistics published on the Internet are misleading.
    • Credit Card Debt Almost half of the citizens of the United States of America suffer with credit card debt.
    • The Federal Reserve System If you're wondering why you pay such high credit card interest rages, read up on Interest Rates and the Federal Reserve.
    • Loan Shark or Loan Officer In my humble opinion there is very little difference between the despicable loan shark and my friendly loan officer at the neighborhood bank.
    • Credit Counseling & Banktuptcy Individuals who wish to file a bankruptcy petition are now required to undergo credit counseling.
    • Credit Counseling Services Certified credit counselors assist you in getting your debt under control. They provide you with the information needed to manage your finances into the future, to build wealth, and to create and maintain personal financial independence.
    • Credit Counselor Requirements Last year, the House of Representatives and the Senate each passed a different bankruptcy reform bill containing wide-ranging changes in the bankruptcy laws applicable to individuals.
    • Debt Repayment Plans Nonprofit credit counseling services offer a variety of services that may include counseling, debt repayment plans, and education.
    • How Do Credit Counseling Services Operate? The organizations receive funds from creditors in the form of a negotiated percentage fee based on payments transmitted to the creditors through clients' debt repayment plans.
    • Standards for Approval The United States Trustee Program develops standards for approval of credit counseling services throughout the country.
    • Free Credit Report You are now able to obtain a free annual credit report from each of the nation wide consumer reporting companies.
    • Free Credit Rating Report Everyone has seen it on the Web. Get your “Free Credit Report! Instantly!” And with a click of a mouse you get sucked in and scammed by one of the many credit report “impostors” that have infested cyberspace.
    • Your Access to Free Credit Reports The Federal Trade Commission’s position on your Access to Free Credit Reports
    • Bankruptcy Some can’t get past the stigma, others see bankruptcy as a tool but the majority of people filing for bankruptcy are decent folk like you or me.
    • Bankruptcy Facts In the year 2003, one in every 73 American households filed for bankruptcy.
    • Famous Bankrupts “You're fired!” That’s right the Donald himself fell pray to the bankruptcy courts!
    • Bankruptcy Court The objective of a bankruptcy court is to give an honest debtor a "fresh start" by relieving them of the majority of their debt
    • Bankruptcy Documents These are the documents that you need to start your bankruptcy.
    • Bankruptcy Law The new bankruptcy law will affect all people filing for bankruptcy
    • Credit Counseling Requirement Individuals who wish to file a bankruptcy petition are now required to undergo credit counseling through an approved credit counseling service within 90 days before filing the bankruptcy petition.
    • Chapter 7 Bankruptcy The court liquidates all of your assets and dispenses them amongst your creditors in exchange for erasing your debt.
    • Chapter 11 Bankruptcy A Federal Bankruptcy Act where a business debtor can maintain control of its business and operations, under court supervision, as long as current debts remain paid.
    • Chapter 13 Bankruptcy In a Chapter 13 agreement, the court enforces a debt repayment plan that allows you to keep your property.
    • Filing for Bankruptcy: All the rules have changed as of the April 20, 2005
    • Involuntary Bankruptcy There are occasions where your creditors may petition for an involuntary bankruptcy against you.
    • United States Trustee Program The United States Trustee Program is the component of the Department of Justice that protects the integrity of the nation's bankruptcy system.
    • The Federal Reserve System There is much confusion regarding the Federal Reserve System. The Federal Reserve System operates like a private corporation.
    • Fed Boosts Rates Again August 9, 2005: The Federal Reserve raised the target for a key short-term interest rate by a quarter of a percentage point for the 10th consecutive time Tuesday. The move was widely expected on Wall Street, as several recent economic reports have indicated that the economy remains relatively strong.
    • Fed hikes rates, says Katrina impact appears temporary Federal Reserve policymakers lifted their base rate by a quarter-point to 3.75 percent, saying that Hurricane Katrina is likely to have only a temporary impact on the US economy. It was the 11th consecutive rate hike by the central bank's Federal Open Market Committee, which devoted much of its statement to Katrina's impact.
    • Loan Shark or Loan Officer A loan shark is a person (usually mob connected) that loans money at interest rates exceeding the interest rate allowed in a given state. These amoral, unethical gentlemen make their own rules and levy late penalties as they wish without concern for the debtors' health or well-being. These ‘businessmen’ are guilty of the crime of usury; a moral and ethical crime that targets the new middleclass, the working poor.
    • U.S. Interest Rates by State The maximum legal interest rates, by state. Where, exactly, are the headquarters of the major credit-card companies? Hmmmm …

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Self Help

Million Dollar Baby — The Magic of Compound Interest.

Inspired by the
Investors Group
You too can have your very own million dollar baby through the magic of compound interest. If at the time of your child’s birth you placed $7,000.00 in a compound interest account, your baby will be a millionaire upon retirement!

Albert Einstein, who knew a lot about math, is reported to have claimed that compounding was the greatest mathematical discovery of all time.

There are 2 ways to earn interest on money:

  • Simple interest is the rate of interest applied to principal (the amount of money originally invested). Any interest earned does not become part of the principal.
  • Compound interest is interest earned on interest. It is calculated not only on the principal interest, but also on the interest that has been generated. This is the key to the magic of compounding because, over time, the interest on interest (also known as accumulated reinvested interest) adds tremendously to investment growth.

For example, if in 1492 Columbus put a single dollar in the bank at 5% simple interest, 500 years later the value of his investment would be $26. Conversely, if Columbus put that same dollar in the bank at 5% compound interest, 500 years later, (even if taxed at 35%) the value of his investment would be $9.6 million!

The Key to Success — Start Early and Stay Invested

The key to compounding is time. The longer you leave your investment alone, the more powerful the effect of compound interest. And the earlier you start your investment, the more you make from compound interest. If you want to know exactly how long it will take for your investment to double, just divide the interest rate you are receiving by 72. This is known as the rule of 72. For example, if your interest rate is 8% (compounded annually), simply divide 8 into 72 to discover that your investment will double every 9 years!

A Million Reasons to Start Now:

If, on the day your child is born you place $7,000.00 in an investment that delivers an 8% return, compounded annually, there will be $1,041,459.00 in the investment when your child reaches the age of 65. Just imagine how much your child will have at retirement if you, or your child continually added to the investment!

Of all the investment strategies available today, the one that works best for most people is buying and holding key investments for a long period of time. And the success rate of that strategy is due almost entirely to the magic of compound interest.

Let’s say that you were unable to invest the $7,000.00 at birth for your child’s million dollar retirement and that bundle of love has grown into the thing known as a teenager. If truth be known, with the amount of time they spend in front of computer terminals these days they should be known as ‘screen-agers’. But I digress.

Let’s say your child has reached the age of 16 and is looking for a job. Most teens in the workforce will make about $2,000.00 per summer worked. If your child worked for 4 summers, until the age of 20, they could retire a millionaire.

You see, if that $8,000.00 earned was placed in common stocks and your child achieved the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your child’s account will grow to $9,378 at the end of the fourth year. Your child will be 20 years old.

Re-invested in the same way, with no additional savings, the account will grow to:

  • $25,917 by the time they are 30
  • $71,625 by the time they are 40
  • $197,943 by the time they are 50
  • $547,037 by the time they are 60
  • And $1,114,423 by the time your child is 67

Your child will have started and finished all of their saving before turning the age of 21.

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