Blog Archive

Tuesday, March 19, 2013

Ten Things Better Than Money


Money does buy happiness, but happiness also creates wealth.
A recent Gallup poll, quoted in an American newspaper, found that "well-being rises with income at all levels of income, across countries."
In other words, as the article's title states, the poll proves that "Yes, Money Does Buy Happiness."
Except that it doesn't prove that at all.
What the study actually discovered was a "strong correlation" between each nation's real Gross Domestic Product per capita and the sense of "well-being" among the citizens from those nations.
Correlation isn't causation. The data could just as easily be interpreted the other way around … that happiness creates wealth.
What's most likely, though, is that happiness and wealth are part of a cycle, each one creating more of the other.
Assuming you want to create both wealth and happiness for yourself and those around you, you have two approaches … wait until you're wealthy to be happy, or become more happy now and thereby create more wealth.
I maintain that, in today's economy, it's easier to start with the happiness, because unlike wealth (which takes time to accumulate), you can increase the amount of happiness in your life within minutes, simply by taking more notice of things that make you happy.
With that in mind, here are ten things that can make you happy immediately, regardless of where you are in the cycle.
1. Life
It's easy to forget that the mere fact of conscious existence--that you are alive--is itself a miracle. As the old saying goes "every day above ground is a good day."
2. Health
Rather than thinking of illness as something bad that happens to you, start thinking of health as something good that's happening to you.
3. Purpose
There is nothing more conducive to long-term happiness than knowing that your actions are making the world a better place.
4. Friendship
Almost everyone has friends, although it's easy to lose track of them in the rush of events. Take a few minutes today  to reconnect with some of them.
5. Family
If you've got a good relationship with your family, rejoice! You're experiencing one of the deepest sources of happiness on the planet.
6. Self-reliance
Feeling secure that you can count on yourself to accomplish what you set out to accomplish creates a quiet but potent happiness.
7. Community
Having the support of a wider group makes you more aware that you're part of something greater than yourself.
8. Gratitude
Rather than focusing on what you don't have or what's out of reach, be thankful for the wonderful things already in your life.
9. Laughter
It is impossible to laugh and be miserable at the same time. Regular doses of laughter are more than medicine... it's the flavour of life.
10. Love
'Nuff said.
Create these ten things in your life and I guarantee that you'll either become more wealthy or, if not, you won't really care anyway because you'll already have what's important.

Tuesday, March 12, 2013

Some helpful tips for borrowers


Sometimes people get in over their heads.

They rack up so much debt that they're unable to make consistent interest and principal payments.

When you're late or unable to make payments, your credit rating suffers. This reduces creditworthiness, and ultimately, it inhibits your ability to access financing.

The good news is that there are things consumers with less than stellar credit can do to improve their standing among lenders and to rebuild their credit score.

In this article, we will look at techniques you can use to improve your stats.

Credit Score? What's That?

A credit score is the key to understanding how creditworthiness is evaluated by lending institutions, as a good credit score can unlock the vault to help obtain financing.

Your payment history, loans outstanding and a general indebtedness are statistically evaluated by the credit bureaus.

Based upon a compilation of that data, your profile is assigned a number between 300 and 850, with 300 being the least credit worthy and 850 being the most credit worthy.

It is this number that lending institutions use as a basis for determining whether you qualify for a mortgage or a quick escort out the lobby doors.

So, now that you understand how the score works, let's look at four tips that will help you raise a bad score and win favour with those stern-faced bankers.

Tip No.1 - Pay More Than the Minimum

If possible, always make payments over and above the minimum interest payment that is due. Credit agencies not only look at the amount of debt an individual has outstanding, but also the length of time it takes to pay off the debt.

Unfortunately, there's no calculation that can be used to measure exactly how much this will boost your score. There are a myriad of factors that go into computing a credit score, but accelerating payments and satisfying debts on a timely basis is recommended as a means of repairing credit by lending institutions and well-known credit counselling agencies.

Tip No.2 - Work Out a Plan

Most people don't realise that if they are behind on their debt payments and are going through some trying times, their lenders will often consider negotiating a revised payment plan or possibly forgiving a portion of the debt.

For lenders, negotiating is cheaper than either hiring a collection agency or risking that the individual might have their debts cleared in a bankruptcy proceeding.

If you need a reprieve, approach the lender and ask for more time to make payments. You can also present a revised payment structure. If you can develop a plan that works for you and makes sense for the lender, there is a good chance they will accept it.

If and when a deal is struck to forgive a portion of your debt, be sure that the major credit bureaus are aware of it and that they make the appropriate notations on your credit report. Less debt and timely payments equal a higher credit score.

You can check to see if the appropriate notations have been made by accessing your credit report, which will document your borrowing and any material changes made to these reports.

Tip No.3 - Switch from Credit to Debit Cards

Credit card debt is no friend to your credit score. One of the best ways to avoid credit card debt is to pay the debt right away, through the use of a debit card.

Debit is different from credit. With a debit card, you deposit money into an account and then use the card to charge against the money. There is no credit bill to rack up, and you can only spend what you actually have.

It is important to note that credit reports don't typically factor debit card payments into the credit score equation. But by disciplining yourself and using a debit card to settle debts on the spot, (rather than racking up huge credit card balances) you will, by extension, have a better credit score.

Tip No.4 - Cut Up Those Store Cards

Many people are just one more card away from witnessing the tragic death of their wallets. The leather strains and stretches to hold in all that easy credit.

It's hard not to have an overstuffed wallet when every retailer you visit now has an in-house credit card they'd be ever-so-happy to sign you up for. While these cards often give bonus points, free merchandise or favourable rates, the bad news is that the more open accounts you have, the lower your credit score will be.

From a credit agency's perspective, the logic behind this is that you could theoretically tap all of these credit sources to the max at one time and rack up a huge amount of debt. In other words, credit agencies and lenders are worried about your potential for taking on high interest debt, as well as the likelihood that you probably maintain small balances on each of those cards.

If they don't have an outstanding balance the easiest solution is to simply call and cancel the cards.

If you have balances on numerous cards right now, one excellent solution is consolidating your debt.

A personal loan at 12% is still better than the 20%+ rates some cards charge. However, if consolidation doesn't sound attractive, consider paying off the debt that has the highest interest rate first, and close out your accounts one by one as you pay them down.

The goal should be to reduce your card count to one or two credit cards. It will make reviewing monthly statements and paying your bills much easier.

It will provide discipline as your overall credit limit will be lower, and finally it will keep your wallet from exploding in your pocket, which can be very messy.

Bottom Line

A low credit score is not the end of your financial world.

Discipline and responsibility can help rebuild even the lowliest of scores. Paying more than the minimum, reducing the number of cards in your wallet, negotiating a payment plan can all help boost your score and improve your odds of success the next time you need a loan.