Avoid Debt – Advice on avoiding debt & bad credit issues

Tips on Accepting Credit Cards

February 20, 2012 by · Leave a Comment 

In these days of ecommerce anyone who does not accept credit cards is missing a lot of opportunities in sales and revenues. Selling on the internet has changed the face of commerce. Since paying by cash is not an option, other methods like electronics funds transfer have been in use. The biggest problem for an ecommerce trader is usually confirming indeed the customer has the money, and if yes how to get it. Credit cards have become the most important tool in ecommerce.

When you decide to accept credit card payments, the biggest headache lies in choosing a good merchant service. A merchant service connects you to the credit card service the customer is on, verifies the availability of funds and facilitates the transfer of those funds. Anyone accepting credit cards cannot bypass the merchant. They are necessary for easier transactions. A good merchant ensures your funds are safe and the customer is well protected. Security should be your first consideration in picking a merchant. This keeps your data safe and prevents loss of revenue.

The transfer of money keeps commerce alive. For good business, funds have to move in time for exchange of goods and services. Ensure you get a merchant who can make your funds available when needed. This means efficiency in transactions. Get a merchant who can offer total merchant services. This means the merchant is able to handle the transaction end to end without transferring the tasks to another service, or without requiring you to handle issues like verification. This ensures integrity of data and better transaction handling.

Boomers are paying down the mortgages

February 16, 2012 by · Leave a Comment 

Baby boomers are retiring in droves. The median age of U.S. population has climbed higher for four years since 1999 and will climb higher again by 2030.

According to Freddie Mac, more Americans are paying down their mortgages. Fifty percent of 2010 third quarter refinancing resulted in smaller mortgages than before.

Why it is happening now? There are several reasons for the surge in smaller mortgages. First, in order to qualify for a lower mortgage interest rate, you need to have minimum of 20% down payment or loan to value. In order to achieve this, people put in more money and thereby reducing the mortgage. Second, look at what you can earn if you put the money into a savings oriented instrument. 30-Year Treasuries pay 3.2%. If you use the money to pay down the mortgage and refinance the balance at 4.0 – 4.5% interest, you are essentially earning more on your money. Third, baby boomers who don’t want to have a huge monthly mortgage payment are paying down the loan balance to increase the equity in their homes. Finally, when they retire and sell their home that will be another source of income during retirement.

10 Tips for Achieving Financial Security

February 6, 2012 by · Leave a Comment 

Financial security is very necessary in today’s world. Everyone would like to lead a financially secured life but they never think about it unless they face financial difficulties. The 10 tips for achieving financial security are as follows:
Decrease your spending habit- Most of the people get into debt due to overspending. Therefore, the first step in achieving financial security is to decrease your spending habit. It is not good to purchase things impulsively. If you don’t spend too much, you will certainly achieve a fair amount of financial security.
Invest the surplus money- If you invest your surplus money into something productive then it will add value to your surplus fund.
Think differently- It is true that the quality of our thinking actually determines how much money we have. People who enjoy the pleasure of financial security are the ones who think differently than the people who struggle.

Have fun- The path to financial independence and security can be really difficult and disappointing at times. It is important that you do something or the other to have fun, don’t be a slave of your goal. Strike a balance between your life at present and your future.
Recognize your value- Your knowledge, experience and skills are the biggest asset you have. Increase your worth through hard work and by upgrading your knowledge and skills. If you put proper efforts in improving your value, it can really have a huge impact in developing your financial stability.

Take loan only for investments and not to finance your lifestyle- You should never borrow money for financing a lifestyle which you cannot afford. If you will constantly borrow money to improve your lifestyle then you will be left with no money.
Grow financially literate- Earning money is one thing and saving that money and making it grow is another thing. It is necessary to make sound investment and financial decision to achieve your goals. If you are more experienced and knowledgeable in the financial matters then you will be making fewer mistakes. A person who is financially literate is wealthier than those people who are not.
Stay away of debts- We should try our best that we stay away from any kind of debts especially credit cards.
Seek help from experts and professionals- There are experts available to help us in cutting costs, saving money or providing us with ideas to start a business. We can always take help from these experts as they can assist us in improving our financial situation and achieving financial security.
Don’t spend more than what you earn- Ensure that you don’t spend more than what you earn. You should always have a positive cash flow. Even a person who is very rich won’t continue to be that rich if they spend more money than what they earn.
We live in a very challenging and difficult time. It will be desirable for us to follow these 10 tips for achieving financial security and live a happy and peaceful life.