I’ve been meeting with more and more recent college grads who are unemployed or underemployed.  They are unable to repay their student loan debts. It’s unfortunate that you can get yourself out of just about every other kind of debt except student loans. So, maybe we should add student loans after “Death and taxes” as a certainty in life.

This month, the Senate heard testimony on for-profit colleges and its abusive lending practices. I would not hold my breath for the Senate to take any meaningful action on the predatory lending practices by lending institutions, but at least it’s one small step in the right direction.

Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 until 1999, the United States maintained a separation between investment banking and commercial banks, but today, things are changing.

Investment banks do two things today. First, they act as an agent by underwriting or acting as a clients agent in the buying and selling of securities. Secondly, they act as a researcher in assisting companies involved in mergers and acquisitions and provide ancillary services such as market making, trading of derivatives, fixed income instruments, and a variety of other transactions.

In recent years, investment banks have been delving into sub-prime loans in the housing industry. Between 2005 and 2009 numerous banks went out of business. Today, the investment banks who have survived the financial crisis have scooped up the mortgage loans from the defunct banks, often at a large discount. Often aggressive investment banks hunt for bargain foreclosure loans. They are literally fishing for foreclosures.

A commercial mortgage bank may be too willing to cut their losses and sell the foreclosure loans.

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Every day, I get to study the most intimate details of my client’s financial life. I know how much my clients spend on food, electricity, rent, entertainment, transportation – the list goes on and on. So, it should come as no surprise to anyone that I think about finances – a lot.

One of the most common themes in my clients’ situations is that none of them have any “disposable income.” Disposable income refers to money left over at the end of the month after expenses are deducted from income. What’s interesting is that the person earning $120,000 per year has $0 in disposable income – just like the person earning $30k.

In order to increase disposable income, you must either spend less or earn more. This brings me to an adage my dad says: “It’s easier to save a dollar than to earn it.”

Looking back at my childhood, I don’t think I ever appreciated my parents for being so frugal. They literally watched every dollar spent. My mom always knew whic

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Get an 80 Paydex score and your business will be able to qualify for all the credit it needs.

Have you ever heard that statement before?

It’s by far the most misleading and misguided advice circulating in the industry, and unfortunately too many small business owners are buying into this misinformation.

In this post let’s shed some light on this very issue so you can gain a much better understanding of what to expect during the credit-granting process.

First, in order to get a Paydex score your company needs at least four payment experiences reporting on your company’s Dun and Bradstreet credit file.

Now if you’re not familiar with Paydex scores it’s basically a unique dollar-weighted numerical indicator of how your company pays its bills with scores ranging from 1-100. 

Similar to how lenders use personal credit scores to determine a consumer’s creditworthiness a company or lender uses a business credit scoring system like Paydex to determine a company’s creditworthiness.

Keep

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Since the Florida Supreme Court liberalized the application of the $4,000 wildcard exemption in February, 2011. The Supreme Court said that the wildcard exemption can be stacked upon the Constitutional exemptions for personal property and automobiles for any debtor who does not claim the homestead exemption in bankruptcy and where the homestead exemption does not otherwise impede the trustees administration of the bankruptcy estate. Some bankruptcy trustees have suggested that debtors are ineligible for the wildcard exemptions when they indirectly get the benefit of a homestead exemption even though they do not expressly claim the homestead exemption on their bankruptcy schedules. The trustees are trying to chip away pieces of the wildcard exemption in order to increase the value of property subject to the trustee’s administration and trustee commission.

A recent bankruptcy court decision addressed two such trustee arguments seeking to disallow the debtors wildcard exemption. The court first considered the situation when a debtor owned an upside down homestead. T

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The availability of good credit is critical in developing and maintaining a prosperous lifestyle. Many of us don’t really understand how to create and manage a healthy credit score.

Part of it is that we don’t take the time and put in the effort to learn about what to do in more detail, and the other part is that when we do, we find a lot of complexity. I sat down with Valeri James owner of Simple Credit Consulting/Training Inc. and asked her for some basic tips, here is what she said:

1. Always pay bills on time!
2. Always live below your means!
3. Save money in a savings account for small to large purchases. If we don’t need it, don’t buy it! If we want it, save for it!
4. Check your credit reports every 6 months for errors, inaccuracies, misleading info, duplicate items, and negative credit that is obsolete. A FREE credit report can be obtained once a year at: www.AnnualCreditReport.com. If you want to pull your credit reports more than once a year, they can be purchased for around $9 with each credit bureau.

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When people file for bankruptcy one of the things they are worried about the most is the fact that it will affect their credit score to a great extent. This could mean that they will never be able to buy a house or a car or see their credit score rise over 700 one more time. They will feel in spite of every effort of theirs they will still see bankruptcy on their credit report. But this fear is not exactly justified. That is because you can improve your credit score after bankruptcy and build your credit history as well.

The first step is to go for the discharge of debtor. In this case, you have to get the notification from the court that all your debts have been discharged permanently. In fact, it is advisable for your to keep that form in a safe place for at least the next decade and half. This is because in the future you will have to show it to creditors as proof that you have to debts.

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As soon as a company (vendor) extends a line of credit to your business on “Net 30″ day terms you can purchase their products or services up to a maximum dollar amount and you have 30 days to pay the bill in full. 

So if you’re business were to purchase $300 worth of products today, then that $300 is due within the next 30 days.

Keep in mind it’s always best to pay 15 0r even 20 days ahead of the due date so your company credit report reflects that your business pays 15 or 20 days sooner than terms. 

Would you rather have an 80 paydex score or a 90 paydex score?

First let’s review some key facts that you should know about Net 30 Accounts:

1. You can obtain products and services your business needs and defer the payment on those for 30 days, thereby conserving cash flow. This is called “Net 30″.
2. When your first Net 30 account reports your “tradeline” to Dun and Bradstreet, the DUNS system will automatically activate your file if it isn’t already. This is also true for Corporate Experian and Small Business Equifax.

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A few years ago, I definitely had the beginnings of a credit card problem. With the average American family carrying about $8k in credit card debt, I may not be the only one! Credit cards arent a problem in and of themselves. They help you build a credit history for one thing. But you have to use them wisely. Here are a few signs that your credit card habits have gotten you in hot water:

1. You blow your budget. You often spend more than you can afford. 2. You put basics on your card. If you have to pay for groceries or other necessities with credit, you are likely living beyond your means. 3. Impulse buys are your thing. If you buy things you dont need in the heat of the moment, you could be at risk of overspending. 4. You can’t pay your credit card bills in total. This is a red flag that you are in over your head. 5. Your debt keeps rising. I have been on the slippery slope so I know: if your balance is on the rise, you could be headed for trouble. 6. M

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Getting help with a debt consolidation program can be easy, if you know where to look for it. After you have decided that this is the best solution for your financial problems, start looking for a non-profit program. With so many people struggling to manage their debts, the government provides all sorts of programs and agencies that can help you find a way to lower your interest rates or find another other options that can make your payments affordable. In addition, these agencies will also provide counseling and legal advice and can guide you throughout all the phases of the debt consolidation process.

If you are not facing bankruptcy, you can also start informing yourself online or from newspapers and adverts about the various programs. Read reviews and opinions of people that are in your current situation in order to find out more about the companies that you want to apply to for a debt consolidation loan. Afterwards, start asking for quotes from the companies that have good reviews and compare them. Because the competition is high in this field, you will probably notice a lot of decent offers. Read more…