At the time of researching your student loan consolidation information options you need to investigate PLUS student loans, with the rising cost of education over the previous few decades, reliance on traditional Stafford loans has in many instances failed to cover most student expenses, the PLUS (Parent Loans for Undergraduate Students) loan plan was designed to close that gap.
Though the rate is higher than other loans the cap on borrowing is much more flexible and the loans are not need-based.
For the FFEL (Federal Family Education Loan) plan, in which private lenders fund the loan the rate is 8.5%, through the Direct loan program the U.S. Dept of Education funds the loan directly @ 7.9%, the difference of 0.6% is often very large over the lifetime of the average loan, in the initial year alone on a 10 year loan of $25,000.00 it amounts to virtually $2,050.00 as apposed to $1,920.00 that equals $130.00 in interest, for an exact calculation you ought to experiment with some sample strategies using a loan calculator such as the ones available on-line.
Apart from the changes in interest rates, another recent alteration to the plan is to now allow professional and graduate students to qualify for PLUS loans, similar interest rates and eligibility criteria apply, like other students they must be enrolled in an eligible institution and program no less than half-time, unlike most Stafford loan schemes, repayment of a PLUS loan begins immediately, generally within 60 days after the loan funds are disbursed, interest begins accumulating from the time the initially disbursement is made, both the main loan and interest are paid in regular monthly installments whilst the student is in school, re-payments are made to the private lender in the situation of FFEL (Federal Family Education Loan) loans and to a U.S. Dept of Education servicing center in the circumstance of Direct loans.
Be certain to calculate carefully all the costs linked with obtaining a PLUS loan and look on it as a loan of last resort as even a home equity loan, for example may easily be less expensive since the interest is tax-deductible, it is essential to keep this information at hand when looking at any student loan consolidation information.
How to Achieve Financial Freedom?
We work so hard until we caught up in the routines for years. With the salary that we earn every day, we try to pay all of our bills. We always expect to get a higher salary, getting promotion or our business running better so we can earn more money. But we do not realize that when we get more income, we also have spent more money on our needs. After we work for two, five, or even ten years we just realize that we have been in the rat race of our financial troubles.
We already set our mind set that we will retire after 40 years of working and then we start to enjoy our life after that. What if you can get the financial freedom faster than 40 years? What if I can show you how to get to financial freedom in 5 years? There are couples steps to achieve financial freedom.
First, you have to get the right mind set. Your mind set is what you are. When you think that you are short, then you always will be short. Unless you want to change your mind set to the positive way, there is no way that you can get your dream, which is Financially Free. If you don't have the money, don't spend it! Our society nowadays, has a brand new habit that does not exist centuries ago. We can spend our money before we earn it! That's right; I am talking about credit card. If possible, cut all the credit cards that are not in used. We will be trap in this financial mouse trap easily with all the credit cards lying around on our tables. If you use your credit card, please do it in your current budget, not your future budget. A lot of people are trapped because they use their credit card based on their 'future' budget. For example, Bob just got promoted this week, and his salary will be raised next month. He was so happy about it, and then he spends his future salary with his credit card. In short, don't spend it until you have it in your 'pocket'.
Third, don't put your money in the bank for too long. We often forget that if we put our money in the bank, the value of the money will be decrease so fast. The interest rate that the bank gives is far less than the inflations rate each year. The bank doesn't care about our money; in fact, they made the most profit from our money.
We have to find the perfect investment. I suggest you to go to your financial advisor ask for their best opinions. They will seek your needs, and they can give you the investments that are suitable to your needs.
Fourth, if we really want to be financially free, we have to earn a passive income. There are several ways to earn passive income. First we can create our own company that can runs without us. So, in short you can create a system that can works for you. It doesn't have to be big; you can start it with a small size company, for example a groceries store. Franchising nowadays has increasing tremendously in the past few years. This industry gives the owner to adapt a system that are already being established and proven. If you don't want to build your own system, you can buy a franchise and run it.
Network marketing is very reasonable for people that don't have big capital. Opening your own business or franchising a business could cost you a fortune, but network marketing usually cost very little to start. You can always find a good network marketing company and stick with the company for 5 years. There you can learn how to built your network and achieve Financial Freedom.
Those are couples steps that you can follow to achieve financial freedom. Every journey is start with a small step. So, you can start your own journey to your financial freedom by start it with a small step. Don't you waste your time, because the time is so precious that we can't turn back the time. Hopefully this entire article help you realize that everyone need financial freedom, before you caught up into the routines for years.
We already set our mind set that we will retire after 40 years of working and then we start to enjoy our life after that. What if you can get the financial freedom faster than 40 years? What if I can show you how to get to financial freedom in 5 years? There are couples steps to achieve financial freedom.
First, you have to get the right mind set. Your mind set is what you are. When you think that you are short, then you always will be short. Unless you want to change your mind set to the positive way, there is no way that you can get your dream, which is Financially Free. If you don't have the money, don't spend it! Our society nowadays, has a brand new habit that does not exist centuries ago. We can spend our money before we earn it! That's right; I am talking about credit card. If possible, cut all the credit cards that are not in used. We will be trap in this financial mouse trap easily with all the credit cards lying around on our tables. If you use your credit card, please do it in your current budget, not your future budget. A lot of people are trapped because they use their credit card based on their 'future' budget. For example, Bob just got promoted this week, and his salary will be raised next month. He was so happy about it, and then he spends his future salary with his credit card. In short, don't spend it until you have it in your 'pocket'.
Third, don't put your money in the bank for too long. We often forget that if we put our money in the bank, the value of the money will be decrease so fast. The interest rate that the bank gives is far less than the inflations rate each year. The bank doesn't care about our money; in fact, they made the most profit from our money.
We have to find the perfect investment. I suggest you to go to your financial advisor ask for their best opinions. They will seek your needs, and they can give you the investments that are suitable to your needs.
Fourth, if we really want to be financially free, we have to earn a passive income. There are several ways to earn passive income. First we can create our own company that can runs without us. So, in short you can create a system that can works for you. It doesn't have to be big; you can start it with a small size company, for example a groceries store. Franchising nowadays has increasing tremendously in the past few years. This industry gives the owner to adapt a system that are already being established and proven. If you don't want to build your own system, you can buy a franchise and run it.
Network marketing is very reasonable for people that don't have big capital. Opening your own business or franchising a business could cost you a fortune, but network marketing usually cost very little to start. You can always find a good network marketing company and stick with the company for 5 years. There you can learn how to built your network and achieve Financial Freedom.
Those are couples steps that you can follow to achieve financial freedom. Every journey is start with a small step. So, you can start your own journey to your financial freedom by start it with a small step. Don't you waste your time, because the time is so precious that we can't turn back the time. Hopefully this entire article help you realize that everyone need financial freedom, before you caught up into the routines for years.
U.S. economy still wobbly; France, Germany show Growth
Fresh data on Thursday dented hopes the U.S. economy is on the verge of a strong rebound, even as Western Europe's two largest economies reported a surprising return to growth in the second quarter.
Many pundits had expected the United States to lead the global economy out of recession, but the world's largest economy was soundly beaten to the punch as its retail sector struggled to lure skittish consumers.
Massive job losses and sharp declines in the housing market have prompted many Americans to pare back spending.
U.S. households are "in no position to drive a decent economic recovery," said Paul Dales, economist at Capital Economics in Toronto.
An unexpected rise in second-quarter GDP in Germany and France, pillars of the euro zone economy, boosted financial markets, which are still fretting over the potential for a global economic pickup.
German Economy Minister Karl-Theodor zu Guttenberg was cautious about the figures. Europe's recovery will likely be patchy at best, with Britain, Italy and the Netherlands still weak and parts of eastern Europe, which rely heavily on exporting to the wealthier western nations, reporting a far gloomier outlook.
GDP in the euro zone fell in the second quarter, albeit by a marginal 0.1 percent.
Germany and France emerged from lengthy recessions in April-June, with their gross domestic product rising 0.3 percent quarter-on-quarter [ID:nLD331672]. The much smaller Portuguese and Greek economies matched that growth.
The country's jobless rate fell in July for the first time in nine months.
We're entering a phase of stabilization and slow growth," Christian Dreger at the DIW Institute. "The main risk for Germany is a sharp rise in unemployment."
U.S. CONSUMERS NOT SPENDING
Retail sales excluding automobiles and gasoline, a popular measure with analysts, fell by 0.4 percent. Headline retail sales fell by only 0.1 percent as the government's "cash for clunkers" auto subsidy program drove more traffic to car dealerships. But new car sales may have drawn demand from other parts of the retail universe.
"While vehicle sales have rebounded, core retail sales have floundered after severe declines in late 2008," said Steven Wieting, economist at Citigroup.
The latest reading on continued claims, or those staying on the unemployment rolls, fell to 6.2 million from 6.3 million, a decline that suggested more long-term unemployed workers are exhausting their benefits.
Taken together, the data dulled hopes for a consumer-led U.S. recovery are elusive. Following a two-day policy meeting it said the economy is "leveling out," the first time in a year that its post-meeting guidance did not characterize the economy as contracting, weakening, or slowing.
WAL-MART EARNINGS BEAT STREET, DESPITE SOFT SALES
Wal-Mart Stores Inc. the world's largest retailer, reported on Thursday unexpectedly better earnings, but it warned that the economy remained a challenge.
The key metric for the giant discounter -- sales at stores open at least a year -- unexpectedly fell by 1.2 percent. Wall Street had looked for a gain of 0.85 percent.
Wal-Mart has benefited from "trade-down" from pricier retail chains, as many American consumers attempt to save cash, especially on staple items such as groceries and household products. Department store operator Kohl's Corp gave a grim outlook for the rest of the year, looking for same-store sales at its 1,000-plus outlets to fall as much as 5 percent.
STOCKS, EURO, INDUSTRIAL METALS RISE
Stocks, commodities and the euro rose due to the GDP surprise, while the dollar dipped. World stocks as measured by MSCI were up 1.1 percent, with U.S. markets rising despite the soft economic data. Wal-Mart surged by 2.8 percent to a four-month high.
Major U.S. stock indices are bumping their 2009 highs. Paulson's disclosure late on Wednesday that he bought large stakes in several banks, including Bank of America Corp., lifted financial stocks and helped sustain the rally.
Paulson of the eponymous Paulson & Co is credited for anticipating the looming credit crisis in 2007.
Meanwhile, copper led advances among industrial metals, reaching a 10-month high of $6,450 a ton on the London Metal Exchange. Lead, zinc and aluminum prices also rose.
"The German numbers are very helpful, the French numbers are very helpful, and that's supporting the copper market," said Sterling Smith, analyst for Country Hedging in Inner Grove Heights, Minnesota.
Many pundits had expected the United States to lead the global economy out of recession, but the world's largest economy was soundly beaten to the punch as its retail sector struggled to lure skittish consumers.
Massive job losses and sharp declines in the housing market have prompted many Americans to pare back spending.
U.S. households are "in no position to drive a decent economic recovery," said Paul Dales, economist at Capital Economics in Toronto.
An unexpected rise in second-quarter GDP in Germany and France, pillars of the euro zone economy, boosted financial markets, which are still fretting over the potential for a global economic pickup.
German Economy Minister Karl-Theodor zu Guttenberg was cautious about the figures. Europe's recovery will likely be patchy at best, with Britain, Italy and the Netherlands still weak and parts of eastern Europe, which rely heavily on exporting to the wealthier western nations, reporting a far gloomier outlook.
GDP in the euro zone fell in the second quarter, albeit by a marginal 0.1 percent.
Germany and France emerged from lengthy recessions in April-June, with their gross domestic product rising 0.3 percent quarter-on-quarter [ID:nLD331672]. The much smaller Portuguese and Greek economies matched that growth.
The country's jobless rate fell in July for the first time in nine months.
We're entering a phase of stabilization and slow growth," Christian Dreger at the DIW Institute. "The main risk for Germany is a sharp rise in unemployment."
U.S. CONSUMERS NOT SPENDING
Retail sales excluding automobiles and gasoline, a popular measure with analysts, fell by 0.4 percent. Headline retail sales fell by only 0.1 percent as the government's "cash for clunkers" auto subsidy program drove more traffic to car dealerships. But new car sales may have drawn demand from other parts of the retail universe.
"While vehicle sales have rebounded, core retail sales have floundered after severe declines in late 2008," said Steven Wieting, economist at Citigroup.
The latest reading on continued claims, or those staying on the unemployment rolls, fell to 6.2 million from 6.3 million, a decline that suggested more long-term unemployed workers are exhausting their benefits.
Taken together, the data dulled hopes for a consumer-led U.S. recovery are elusive. Following a two-day policy meeting it said the economy is "leveling out," the first time in a year that its post-meeting guidance did not characterize the economy as contracting, weakening, or slowing.
WAL-MART EARNINGS BEAT STREET, DESPITE SOFT SALES
Wal-Mart Stores Inc. the world's largest retailer, reported on Thursday unexpectedly better earnings, but it warned that the economy remained a challenge.
The key metric for the giant discounter -- sales at stores open at least a year -- unexpectedly fell by 1.2 percent. Wall Street had looked for a gain of 0.85 percent.
Wal-Mart has benefited from "trade-down" from pricier retail chains, as many American consumers attempt to save cash, especially on staple items such as groceries and household products. Department store operator Kohl's Corp gave a grim outlook for the rest of the year, looking for same-store sales at its 1,000-plus outlets to fall as much as 5 percent.
STOCKS, EURO, INDUSTRIAL METALS RISE
Stocks, commodities and the euro rose due to the GDP surprise, while the dollar dipped. World stocks as measured by MSCI were up 1.1 percent, with U.S. markets rising despite the soft economic data. Wal-Mart surged by 2.8 percent to a four-month high.
Major U.S. stock indices are bumping their 2009 highs. Paulson's disclosure late on Wednesday that he bought large stakes in several banks, including Bank of America Corp., lifted financial stocks and helped sustain the rally.
Paulson of the eponymous Paulson & Co is credited for anticipating the looming credit crisis in 2007.
Meanwhile, copper led advances among industrial metals, reaching a 10-month high of $6,450 a ton on the London Metal Exchange. Lead, zinc and aluminum prices also rose.
"The German numbers are very helpful, the French numbers are very helpful, and that's supporting the copper market," said Sterling Smith, analyst for Country Hedging in Inner Grove Heights, Minnesota.
Debt factorization and invoice discounting:the basics
Debt factoring involves selling your invoices to a third party. process the invoices and allow you to draw loans against the money owed to your business. Essentially, these companies provide a debt collection and ledger management service.
This is used basically to reduce administration overheads & thereby improve the Cash flow. Businesses that supply this service are called factors or debt factoring companies.
Invoice discounting is an alternative way of drawing money against your invoices. However, your business retains control over the administration of your sales ledger. It offers valuable support services and credit insurance.
This guide gives information on how debt factoring and invoice discounting work,the advantages and disadvantages, different types of factoring and invoice discounting, the cost, and how to choose a factor or discounter.
How debt factoring works
Factoring provides a fast prepayment against your sales ledger, at a cost, to flexibly increase your working capital and improve cash flow.
Factoring is offered to businesses trading with other businesses on credit terms. It is not normally available to retailers or to cash traders.
When factoring starts
Factors can be independent or subsidiaries of major banks and financial institutions. business, review your financial situation and study your business plan to evaluate your suitability for a factoring facility.
After signing the agreement, the factor will typically agree to advance up to 85 per cent of approved invoices. all sales go through the factor.
Check the notification period - most factors require three months' notice to end Negotiate if you are not happy with the notice period.
Factoring is a complex, long-term agreement. solicitor on the legal and financial implications of factoring.
When an invoice is raised
If an invoice is not paid, responsibility for paying the debt will depend on the type of agreement - either recourse factoring or non-recourse factoring. page in this guide on recourse factoring and non-recourse factoring.
Advantages and disadvantages of factoring
There are numerous advantages to debt factoring, but also some potential
drawbacks.
Advantages
Factoring provides a large and quick boost to cash flow valuable for businesses that are short of working capital.
Other advantages:
works best when a business is efficient and there are few disputes and queries.
Other disadvantages:
This is used basically to reduce administration overheads & thereby improve the Cash flow. Businesses that supply this service are called factors or debt factoring companies.
Invoice discounting is an alternative way of drawing money against your invoices. However, your business retains control over the administration of your sales ledger. It offers valuable support services and credit insurance.
This guide gives information on how debt factoring and invoice discounting work,the advantages and disadvantages, different types of factoring and invoice discounting, the cost, and how to choose a factor or discounter.
How debt factoring works
Factoring provides a fast prepayment against your sales ledger, at a cost, to flexibly increase your working capital and improve cash flow.
Factoring is offered to businesses trading with other businesses on credit terms. It is not normally available to retailers or to cash traders.
When factoring starts
Factors can be independent or subsidiaries of major banks and financial institutions. business, review your financial situation and study your business plan to evaluate your suitability for a factoring facility.
After signing the agreement, the factor will typically agree to advance up to 85 per cent of approved invoices. all sales go through the factor.
Check the notification period - most factors require three months' notice to end Negotiate if you are not happy with the notice period.
Factoring is a complex, long-term agreement. solicitor on the legal and financial implications of factoring.
When an invoice is raised
- You raise an invoice, which has instructions to pay the factor directly and sendit to the customer. Send a copy of it to the factor.
- The factor pays an agreed percentage of the invoice to you.
- The factor issues statements to the customer on your behalf. It operatescredit control procedures including telephoning the customer if necessary.When an invoice is paid by the customer
- The customer should pay 100 per cent of the invoice directly to the factor.
- The factor pays the balance of the invoice to you. Fees and interest will be deducted from the payment. factoring and invoice discounting.
If an invoice is not paid, responsibility for paying the debt will depend on the type of agreement - either recourse factoring or non-recourse factoring. page in this guide on recourse factoring and non-recourse factoring.
Advantages and disadvantages of factoring
There are numerous advantages to debt factoring, but also some potential
drawbacks.
Advantages
Factoring provides a large and quick boost to cash flow valuable for businesses that are short of working capital.
Other advantages:
- there are many factoring companies, so prices are usually competitive
- it can be a cost-effective way of outsourcing your sales ledger while freeing upyour time to manage the business
- it assists smoother cash flow and financial planning
- some customers may respect factors and pay more quickly
- you may be given useful information about the credit standing of your
- factors can prove an excellent strategic as well as financial resource whenplanning business growth
- you will be protected from bad debts if you choose non-recourse factoring
- cash is released as soon as orders are invoiced and is available for capital
works best when a business is efficient and there are few disputes and queries.
Other disadvantages:
- The cost will mean a reduction in your profit margin on each order or service fulfillment.
- It may reduce the scope for borrowing - book debts will not be available as security.
- Factors may want to vet your customers and influence the way that you do business.
- Some customers may prefer to deal directly with you.
- How the factor deals with your customers will affect what your customers think of your reputation.
- You have to pay extra to remove your liability for bad debtors.
Subscribe to:
Posts (Atom)
