Monthly Archives: March 2009

Credit and debt problems during a recession

In the present times, the global economy has been badly affected and people need to make good and intelligent decisions when it comes to using credit cards and loans. Here are some tips that will help you in maintaining good credit practices during a recession period or an economic turndown.

The first thing that you need to do to stay out of debts is to pay your bills on time and keep a good credit record. This will help you to qualify for lower interest rates when you are looking for any new credit in the future. Don’t wait until the last minute to pay your monthly bills. If you are not paying your bills in time, the credit card companies will charge you high interest rates and late fees. The late remarks will be reported on your credit report and the future lenders will find you as a high potential risk to their finance if they have to offer you any new credit.

Credit report is a very prestigious financial document of an individual. It shows a list of all your revolving accounts and how you had been paying your credit card bills, loans, rent and selected other debts and bills. A credit score is a three digit number generated on the basis of how you have been using your credit and reflects your financial responsibilities. Based on your credit ratings, the credit grantors will determine the interest rates to be offered on any new credit.

In order to keep your credit in good standing, it is always recommended to pay your bills on time. While missing one or two payments over a long period of time may not significantly damage your credit history, if you are constantly missing your monthly payments, it will have a devastating effect on your credit ratings. You will face tremendous problems in getting approved for any new credit or loans. Lenders will look into your recent payment history to make sure whether you qualify for their loans or credit. Be particular in your payment activities if you are applying for a loan.

Having too many credit cards and not able to manage it is certainly not a good sign. There are people who collect a stack of cards, including those from stores and oil companies, several of which are rarely used. If you have too many credit cards out of which some of them are not used at all, creditors will think that you might use those cards sometime in the near future and get into debts. Even if you’ve proven in the past to be a responsible user of credit these “extra” cards could come back to haunt you the next time you apply for a mortgage or other loan.

If you find yourself in excessive amount of debt and having a hard time in paying it back, consult a debt settlement company to negotiate with your creditors for payment arrangements. They will analyze your present financial situation and work out a suitable payment plan with your creditors and walk you towards a debt free life.

Advantages and disadvantages of a demo account in Forex Trading

Many brokers in the Forex trading offer a demo account to their clients to ensure a smooth business in foreign trading. This is a kind of account that uses fake currencies and it is used to conduct virtual trades. You can avail this demo account for absolutely free.

There are many advantages of having a demo account in Forex trading. The most important benefit is that it shows conditions of the real market. In most cases, the brokers will open this demo account for their clients for a month, but there are other brokers who are often generous to the clients and keep this account open for as long as they want. This is of course to create an impression that the brokers are not just after money, but in fact they want to offer some genuine services as well to their clients.

When the demo account is opened, you will have to provide some personal information to the brokers. This to ensure that they are in contact with you and help you in getting a real account.You can also use the demo account to test different trading strategies until you find a system that works for you. The main reason of having a demo account is to ensure that you do not feel broke when you start doing Forex trading and things do not happen to work in your favor.While there are some advantages of having a demo account, there are few drawbacks as well. Forex trading can never happen without any kind of risk. You may be using a demo account so that you can get used to handling a real account in the future and when you are using this demo account, you won’t feel any real emotional effects because of using fake currency.

If you are not financially disciplined, you can end up blowing every penny you have, including your life savings while looking to make a large profit quickly. Keep in mind that when you lose a lot of money in a real Forex trading account, it’s no laughing matter.

Overall, having a demo account is a great tool to learn about Forex trading. You should always keep a check on your finances and make wise decisions while doing Forex trading. You should never wait until that point when you have lost everything.