Today we have a guest post from a reader named Vincenzo that I think that you are really going to enjoy. Vincenzo has some very insightful tips on Forex trading and on how to get out of debt that many of you will find useful....
-----
Can Forex Trading Save You From Debt?
In this very unstable economy, many of us are enduring the pains of debt. With the unemployment rate at record highs and so many foreclosures, it seems almost like debt is some sort of financial fad right now… because “everybody’s doing it”.
So, what can we do to get out of debt? Well, of course we have the options that all of us are well familiar with by now: bankruptcy, debt consolidation, settling with creditors, and so on.
For those in the specific circumstance where you have money in reserve and are trying to pay your debt down as quickly as possible before that reserve is depleted, there is another rather unique approach to debt – foreign exchange (forex) trading.
This is a good time for a disclaimer and a caution. We are not saying that everyone should just go out and open forex accounts for themselves and start trading like mad. While the reward potential of this type of trading is extremely high and can be very lucrative, the risk is also extremely high. Anyone who decides to trade currencies should be prepared to lose all of the money that they put into their trading account. So, if you don’t have the stomach for this sort of thing, don’t do it. Seriously. Don’t.
For the rest of you who are still reading, yes, it’s true. Trading the forex can bring you lots of money if you get well educated on how to properly do so. So here are the steps that you should take, if you have the circumstances and want to try this approach to help you make enough money to address your debt issues:
Learn
There are many books, online courses, websites, and classes that can help you to learn basic and advanced strategies. Focus on proper money management strategies and trading psychology.
Practice
You know the saying, “Practice makes perfect”? Not true. But practice does make better. Open a demo account where you can trade with real live market data using play money. Don’t start with real money until you’re absolutely confident in your skills and are a consistent trader.
Ease In
Hold on there, cowboy. Don’t just close your eyes and jump into this with both feet. Start slow. This is real money now. If you lose it, it’s gone. The psychology of real trading is different than with a demo account. Tread carefully.
Discipline Yourself
Always be deliberate with every trade. Stick to your trading plan. Set your stops and limits. Live by your money management rules. Don’t be greedy.
If your debt is breathing down your neck, take the money you’d like to trade (again, no more than you can lose without hurting yourself), and join a managed account with a solid track record.
Remember, trading can be risky. But if you learn the ropes and trade with discipline, it is possible to reap enough rewards to pay off your debt. If you get to this point, you can continue and begin enjoying the profits after your debt is gone.
This is the time of year when hundreds of thousands of eager young Americans are looking forward to their first year in college. The last thing most of them are usually thinking about is how they are going to pay off all of the student loans that they are signing up for. But they should think about it. After all, do you buy a house or a car without first considering how you are going to pay for it?
But somehow it has become "politically incorrect" to suggest to college students that they should consider how in the world they plan to pay for the education they are about to receive.
Most young college students assume that they will just run out and get a great job once they graduate and that paying off these loans will be no problem.
But for millions of young Americans, that has turned out to be a very faulty assumption. In fact, in the current economy millions of recent college graduates are unemployed and "good" jobs are few and very far in between.
And it gets really hard to pay off tens of thousands in student loan debt without a good job.
The New York Times recently profiled Cortney Munna - a recent college graduate who has not been able to get that "good job" and who now finds herself in student loan hell. She told the New York Times that she would gladly give back her education to get out of all this debt....
"I don’t want to spend the rest of my life slaving away to pay for an education I got for four years and would happily give back."
The truth is that is exactly where hundreds of thousands of young Americans find themselves.
So if you are getting ready to take out huge student loans, you might want to think twice before signing the dotted line.
So just how bad is it out there?
Well, with tuition at some universities now running more than $30,000 a year (before you even add fees and expenses), students are racking up debt at an alarming rate.
The Project on Student Debt estimates that 206,000 students graduated from college with more than $40,000 in student loan debt during 2008. Using 2008 dollars, that represents a ninefold increase over the number of students graduating with that amount of debt in 1996.
So the truth is that we have a real student loan debt crisis on our hands.
Young people are getting into massive amounts of debt and they are not getting good jobs that allow them to be able to service all of this debt.
And bankruptcy is not an option for these young people either.
For millions of Americans who want to get out of debt, the smooth advertisements of the "debt settlement" companies are a little too hard to resist. They promise to settle your debt for pennies on the dollar. They promise to get you out from under credit card bills that you can’t pay. But do they get the job done?
The following is a quote from a GAO report to a Senate committee about what the investigation discovered....
While we determined that some companies gave consumers sound advice, most of those we contacted provided information that was deceptive, abusive, or, in some cases, fraudulent. Representatives of several companies claimed that their programs had unusually high success rates, made guarantees about the extent to which they could reduce our debts, or offered other information that we found to be fraudulent, deceptive, or otherwise questionable.
It turns out that many of these debt settlement companies charge very large up front fees which customers are not able to get back later if they are not pleased with the results. Some of them even claim to be government-approved or part of the economic stimulus program.
The GAO says that fewer than 10% of the people who hire these debt settlement companies actually settle their debt for "pennies on the dollar".
So if you do hire one of these companies you might want to keep your expectations in check.
The reality is that most people who sign up with these companies fall further behind on their debts, they see their credit ratings go down the tubes, and they often end up having collection agencies coming after them.
The bottom line is that if you want to get out of debt you should not rely on a debt settlement company. In addition to being out the huge fees that you pay to such a company, you will probably just ruin your credit and end up much farther behind on your bills.
The truth is that you would be much better off trying to reduce your expenses, working with your creditors to construct a reasonable payment schedule and figuring out a way to start bringing in more income.
So what do you think? Do you think debt settlement companies are the way to go? Have you had a positive or a negative experience with a debt settlement company? We would love to hear your story - please feel free to leave a comment below....
If you are trying to get rid of all of your debt, there are numerous methods available that can be extremely successful. One of the most crucial jobs you need to do to start eliminating your debt is to decide how you are going to set up your budget. One of the most common budget techniques out there is acknowledged as the envelope method.
To get started, you have to list all of your standard expenses. These are the expenses for which you routinely use a debit card or credit card. When you make your list, try to have it broken down into assorted categories like food, personal entertainment, grooming, or gasoline for your vehicle. Then, label an envelope for each category.
After you have your list, determine the amount of money you will likely pay out for each category for one week, two weeks, or on a monthly basis. The most common way to determine your expenses is to base it on a two week period because lots of people get paid every two weeks. Put the amount of cash that you totaled up for each category in its labeled envelope.
If you end up running out of money for a specific envelope before you get paid again, then you're out of luck. You will need to learn to survive without until your next pay check. This forces you to take a good hard look at where your money is going as opposed to when you use your debit or credit card for purchases. In addition, you can't take cash from your other categories when you run out of money like you can when you use credit cards or your debit card.
This tactic will make you appreciate the fact that you're spending more money than you have budgeted. Then you will be faced with a decision to either expand the amount of your budget, or learn to modify your lifestyle to live within your means until you no longer have any debts.
You should now know why the envelope method has turned out to be so prevalent. It's simple and it works. Getting out of debt is not as impossible as it may seem. You just need to follow some simple guidelines to help you manage your money. Give this system a try and discover what it feels like to live a debt free lifestyle.
Charles has been writing about a range of financial topics for nearly 5 years. If you need to fix credit problems or you need credit repair help, be sure to visit Charles' latest website where you will discover how you can systematically fix credit score problems.
In the video posted below, Sharon Epps, an executive vice president with Crown Ministries, gives practical steps on how to save money and get out of debt. Some of the tips on getting out of debt she suggests in the video include....
*Selling Items You No Longer Need
*Reducing Unnecessary Expenses
*Setting Up An Automatic Savings Program
Crown Ministries is a great resource and they always give out solid advice. We think that you will really enjoy the video below....
Getting out of debt has become one of the biggest financial trends in the United States. The reality is that the American people have piled up a gigantic mountain of debt over the last several decades, and now millions are waking up and want out of the debt trap. Christian debt-elimination programs, which use the Bible as a framework to encourage financial responsibility, are surging in popularity across the United States. So why are so many Americans turning to an old book for advice about how to get out of debt in a financial world that is very modern and very complicated?
Well, it turns out that the financial principles found in the Scriptures are very applicable to today. For example, Dave Ramsey's Financial Peace University has proven to be wildly popular across the United States. One Florida newspaper recently reported that nine Palm Beach County churches and 15 Broward County churches are offering the course.
But it is not just in Florida where Ramsey's program is popular. According to a Dave Ramsey spokeswoman, 4,000 churches across the United States started classes based on Ramsey's materials between January 1st and February 6th.
Crown Financial Ministries is another ministry that has helped thousands upon thousands of Americans get out of debt and start living according to Biblical financial principles. According to them, the Scriptures have more than 2,000 verses related to money and finances.
So what are some of the key verses in the Bible about debt and money?
We have listed some of them for you below....
Proverbs 22:7: "The rich rule over the poor, and the borrower becomes the lender's slave."
1 Timothy 6:1: "For the LOVE of money is the root of all evil: which while some coveted after, they have turned from the faith, and pierced themselves through with many sorrows."
Matthew 6:24: "No man can serve two masters....or else he will hold to the one and despise the other. You cannot serve God and mammon."
Matthew 6:33: "Seek FIRST the Kingdom of God and His way of doing things, and all these things shall be added to you."
2 Thessalonians 3:10: "if any would not work, neither should he eat."
Malachi 3:9-11: "bring all the tithes into My storehouse...and prove Me now herewith, saith the Lord, if I will not open you the windows of heaven, and pour you out a blessing , that there shall not be room enough to receive it. And I will rebuke the devourer for your sakes, and he shall not destroy your substance."
Luke 6:38: "Give, and it shall be given to you; good measure, pressed down, and shaken together, and running over to overflowing shall men give into your bosom."
2 Corinthians 9:6 "He which sows sparingly shall reap sparingly; and he which sows generously shall reap generously."
Matthew 6:20 : "But lay up for yourselves treasures in heaven...where thieves do not break through nor steal : For where your treasure is, there will your heart be also."
That is just a sampling of what the Bible has to say about debt and money. The truth is that there are thousands more verses about finances in the Scriptures, and they are as applicable today as they were back then.
So if you are in a financial jam and you need some advice, you might just want to pick up your Bible.
It may just be the solution that you have been searching for all along.
What should you do once you get out of debt? The truth is that many people resume old financial habits after they successfully get out of debt. That would be bad enough during normal times, but considering the fact the we are headed for another Great Depression, it is imperative to fundamentally change how you manage and spend your money after you do get out of debt.
So what should your financial priorities be in 2010?
Well, "Dr. Doom" Marc Faber, who predicted the 1987 stock market crash, is warning that some incredibly difficult economic times are coming and he is advising investors to buy farmland and gold.
Why?
Well, because in the hard times ahead, food will be an incredibly valuable resource. Owning farmland will put you in a very good position whether you wish to grow your own food or sell food to others.
In addition, gold is a great way to preserve your wealth. The reality is that an ounce of gold could buy an expensive suit 100 years ago and an ounce of gold can buy an expensive suit today. But the purchasing power of U.S. dollars has declined by over 95 percent during that same time frame, and the value of the dollar is about to go down dramatically once again.
If you don't have enough money to invest in gold, then what you need to do is focus on the things that will be necessities during an economic meltdown....
1) Food
2) Water
3) Shelter
4) Energy
5) Security
The reality is that most Americans live month to month and they have very little stored up in case an emergency strikes.
Don't let that happen to you and your family.
Once you get out of debt, turn your full attention to preparing for the incredibly hard economic times that are coming.
When those times arrive, you will be very glad that you did.
Everyone pays attention to the interest rate when shopping around for credit cards, but Finance Charge policies are rarely glanced at. Are credit card companys are really charging you 83.3% interest? When a customer receives a $1000 loan from a bank, the bank in turn has the legal right to charge interest on the rate you borrowed the loan. If, for example, the interest rate were a fixed 10%, cost of borrowing the original $1000 would be at least $1100, in other words, the $1000 loan + $100 finance charge. Banks and credit card companies don't expect most customers to borrow the loan and pay it back right away, and nor do most people pay on time every month. The bank allows customers a few days after that date to pay their bill, which is called a grace period. Payments received after the grace period can be assessed as late fees or additional finance charges stated by the federal Truth-in-Lending Act.
Finance Charges
One Mans experience with Chase Credit Cards, where he missed one payment and his interest skyrocketed. His additional videos are here and here
What can you do?
Don't accept it!
You can phone into your credit card company and ask for them to lower your rate, or your finance charges to be minimized. The key to getting compliance with your credit card companies is to go in with a plan before asking. If you have a poor payment method, chances are very slim that you will get your rate lowered, or any additional favors added into that mix. BUT, if you do make your payments on time, that is a huge card you can play. You have to think of a plan before phoning. Think of your conversation as a give and take.
"I have made my payments on time for the last year, and I am hoping to pay off my credit card in the next 8 months, can you do better on the interest rate? "
The bank is going to give up a lot of money of interest and finance charges they would otherwise make off of you, so why would they lower your rate?
Most often, it involves a promise to make a certain amount of payments of some sort of give on your end. We have an additional article that explains how to phone in and lower your credit cards here.The # 1 success tip is to think in advance what positives you have on your side. What cards do you hold in your hand? Do you have a job that is consistent? Have you paid on time? Are you eager to make your payments on time? Are you excited about paying off your credit card?
When we phoned in to our credit card companies asking for a low rate we had success and failure. One credit card gave us 0% interest for one whole year. We were jumping up and down after that phone call, while the other card, flat out said NO, after talking to a number of representatives. We decided to move our credit card balance to another card, because some companies will refuse to work with customers who are willing to pay off their debt. Keep in mind, we did pay on time the entire time we had our card. Some companies JUST will refuse to take a loss on their bottom line of making money.
The last card, we had to wait on hold on the phone for the manager as the customer representive declined to lower our rate. One big tip we can pass on is don't give up on the phone. Many people are phoning in and asking for a lower rate, so their customer reps are educated to decline customers. Most customers think, no means no, so they give up and hang up. Ask to speak to the manager in charge. If you do so, be sure to have a plan that details why they should give it to you, and what you will promise in return for a lower rate.
Today we have a guest post from a reader named Vincenzo that I think that you are really going to enjoy. Vincenzo has some very insightful tips on Forex trading and on how to get out of debt that many of you will find useful....
The Truth About Student Loan Debt
But somehow it has become "politically incorrect" to suggest to college students that they should consider how in the world they plan to pay for the education they are about to receive.
Most young college students assume that they will just run out and get a great job once they graduate and that paying off these loans will be no problem.
But for millions of young Americans, that has turned out to be a very faulty assumption. In fact, in the current economy millions of recent college graduates are unemployed and "good" jobs are few and very far in between.
And it gets really hard to pay off tens of thousands in student loan debt without a good job.
The New York Times recently profiled Cortney Munna - a recent college graduate who has not been able to get that "good job" and who now finds herself in student loan hell. She told the New York Times that she would gladly give back her education to get out of all this debt....
"I don’t want to spend the rest of my life slaving away to pay for an education I got for four years and would happily give back."
The truth is that is exactly where hundreds of thousands of young Americans find themselves.
So if you are getting ready to take out huge student loans, you might want to think twice before signing the dotted line.
So just how bad is it out there?
Well, with tuition at some universities now running more than $30,000 a year (before you even add fees and expenses), students are racking up debt at an alarming rate.
The Project on Student Debt estimates that 206,000 students graduated from college with more than $40,000 in student loan debt during 2008. Using 2008 dollars, that represents a ninefold increase over the number of students graduating with that amount of debt in 1996.
So the truth is that we have a real student loan debt crisis on our hands.
Young people are getting into massive amounts of debt and they are not getting good jobs that allow them to be able to service all of this debt.
And bankruptcy is not an option for these young people either.
In fact, federal bankruptcy law makes it nearly impossible to discharge student loan debts.
So once you are in student loan hell you are basically stuck there for the rest of your life.
So, young person, think really, really hard before you sign that dotted line.
Because once you take that student loan, it is going to follow you for the rest of your life.