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The worries of an Us recession surged after a key barometer of the strength of the service sector dropped to its lowest level since 2001. With the services business being the last strong hold of economic growth and accounting for about three quarters of the economy, the slump seems inevitable. The Institute for Supply Management’s non-manufacturing index dropped to 41.9 from 54.4 in December 2007. It was the steepest fall since the index was launched and even the lowest level since the 9/11 terrorist attack. A value less than 50 indicates a contraction of service activity, suggesting that the recession could be worse than the relatively mild one experienced in 2001. Economist is now speculating how long and how deep the slump will be as it is going to be a broader and deeper slowdown than assumed.

If you are suffering because of credit card debt related issues , then you must consider coming out of the situation as soon as possible. It is commonly considered that debt can be eliminated only by consumer credit counseling or debt consolidation or settlement. However, there are other debt elimination methods that you should try first because they are free and easy. Out of these the two most common are the debt snowball and the avalanche method. What is debt snowball method? In most cases it is said that you must pay off the highest interest rate debts first. However, as per this method you are to focus more on paying off your low interest rate debts first so that you can generate some momentum. The advantage of starting with the debt that has the lowest rate of interest is that it will be paid off quickly. The money that you were paying towards it can be used to pay the debt that is the next lowest interest rate debt on your list...

Getting into debt is easier than you think. But when it comes to coming out of debt, you really have to work hard. Majority of debt problems arise from credit card debt since it carries one of the highest interest rates among all types of consumer debts. Credit card debt is regarded as one of the most detrimental types of credit and hence it’s important to find a way to eliminate credit card debt. Credit card debt doesn’t have any definite repayment term so the problem goes on for an extensive period. Financial problems are additionally aggravated by the fact that most credit card holders only make the minimum monthly payment. Now how can you eliminate credit card debt? It is best that you do it with a 0% balance transfer card. Remember that if you only make the minimum monthly payment on your cards, you’ll never become debt free in your whole life. This payment only pays the interest that you owe and not the principal balance. Credit card issuers extend the r...

A debt management plan/program can help you if you are not able to manage your multiple debts on your own. A debt management plan is a structured repayment program that helps you to repay your outstanding debts/loans. It is also sometimes referred to as simply DMP. Usually, a credit counseling agency conducts debt management programs; however, there are several debt management companies that offer such programs. When to take help of a debt management plan You should go for a debt management program when you experience any of the following situations. You are not able to make your monthly debt payments on time. You’re using one credit card to pay the bill for another one. It is only possible for you to pay the minimum amount on your credit cards. You’re getting harassing calls from your creditors and collection agencies. How a debt management program works You can opt for a credit counseling session wherein a counselor can analyze your financial condit...

Whether a society is economically sound or not is determined by what role is played by industry and commerce. The lifestyle of people in a particular society also reflects the economic well being of the society. Any unforeseen happenings that hamper the working and hence the well being of the society can be taken care of with insurance. Insurance definitely has an important role to play in a country’s economy. Risk in insurance jargon means the uncertainty that is associated with any kind of financial loss. The loss can be from any damage to property, interruption in business, inability to earn due to a disability, an auto accident and the like. To be able to balance the situation, the risk needs to be reduced as far as possible. The best way to do this is to follow a well designed financial risk management strategy. With a properly administered risk management system you can control the adverse effect that a risk might cause to a society. The procedure to be follo...

Do you know how it is decided how much you need to pay for an insurance policy? When you approach an insurance company to purchase a policy, it may take help of an insurance underwriting company (such as, Universal Underwriters Service Corporation, Universal Underwriters Insurance Company, etc.). An underwriting company assesses the risk of offering a policy to a client. This risk calculation helps an insurance company to decide the cost of the policy; that is, how much it should charge for the coverage. Insurance underwriting – What it means  As already stated, underwriting can be simply defined as risk assessment. An underwriter assesses whether or not an entity should receive the desired coverage; if the entity is eligible to receive the coverage, then the amount the person/business needs to pay for the policy. Though the guidelines for assessing risk may differ from one company to the other, yet the purpose is same – to make profit; that is, the insurance compa...

Professionals are required to have adequate skill and technical knowledge in their specific area of expertise. They are required to perform services according to professional standards of conduct. Therefore, clients have every right to file lawsuits if the professionals fail to meet the expectations of their customers. Therefore, the professionals who have their own companies need to purchase professional indemnity insurance that provides coverage against any financial losses caused by lawsuits. It is also referred to as professional liability insurance or simply, professional insurance. Professional indemnity insurance terminology Professional indemnity insurance usually takes on different names on the basis of the specific profession. As for example, if you are a home inspector or real estate broker, then you can purchase E&O (Errors and Omissions) insurance policy. Similarly, if you are in medical profession, then you are required to have ‘Medical Malpractice’ insurance. I...

Investment portfolio is an accumulation of different investments done by an investor to earn profits out of them in the long run. These investments are a combination of low-risk level to high-risk ones with the potential for growth. The different types of investments under the investment portfolio are real estate investment, gold investment, investment in shares/stocks and mutual funds. You should avoid taking many risks as you may end up incurring heavy debts and ultimately find debt help. How to minimize risks in investment portfolio You invest in anything with the aim to get substantial returns. It is another way to earn money. The returns usually depend on many factors such as market value and the economy of the country at present. Thus there is always the risk that you might lose your money or may get quite less than what you are entitled to get. There are several ways you can minimize risks while investing. They are cited below: 1. Diversification in investment po...

LONDON—The U.K. public sector borrowed £16.2 billion ($25.44 billion) in September, the Office for National Statistics said Wednesday, with central-government spending rising sharply. Gross mortgage lending grew at a marginally slower pace in September from August and was the lowest September total in 10 years. The September data means the U.K. has borrowed £73.5 billion so far this financial year, excluding the costs of the bank rescues. That compares with £77.4 billion in the same period last year. The financial year started in April. September's public-sector net borrowing was a record for that month and compared to £15.5 billion in September 2009. The pound fell after the data but quickly regained lost ground. Gilt prices also slid back from session highs, with December gilt futures at 124.24 versus 124.49 before the data. The data comes ahead of Chancellor of the Exchequer George Osborne's spending review, due at 1130 GMT Wednesday, which will sign...

It becomes quite difficult for a person to meet everyday expenses when he/she is suddenly laid off from the job. In such a situation, unemployment loans can help to meet your everyday expenses. Types of unemployment loans There are 2 types of unemployment loans available to you, namely, secured unemployment loan and unsecured unemployment loan. There 2 types of loans are discussed below. 1. Secured unemployment loan – You can take out a secured loan if you have a valuable asset that can be used as collateral. You can pledge your home or your vehicle if you have a free and clear title to the asset. One of the greatest advantages of obtaining a secured loan is that you may get comparatively low interest rates on such loans. Moreover, it is relatively easier to obtain such a loan even with a bad credit record. However, there is a risk attached to it. You may lose your asset if you’re not able to pay back the loan on time. 2. Unsecured unemployment loan – As...

The Contingency Planning & Management Conference (CPM 2010 East) is coming up November 3-4 in New York City. It offers a 2-day, 4-track advanced-level program taught by expert faculty in small, classroom settings. Plus, you can earn up to 35 Continuing Education Activity Points (CEAPs) just for attending. If you're interested in attending, I've been given a special registration code to share with you, the readers of Manage Financial Risk, that will save you $100 off the full conference rate! Just go to http://bit.ly/FRMCPM2010 and register with the promotion code NX1C79 . It looks like the sessions will have some interesting content for financial risk management professionals. Sessions include: * Continuity Management in the Financial Industry - Keeping the Wheel Moving: A Critical Spoke in the U.S. Economy * Teaming Enterprise Risk Management and Business Continuity You may also be interested in the keynote this year, from Joseph Bruno, Commissioner of the N...

When you enroll yourself in a commercial credit counseling service, a credit counselor, who is experienced in business related finance, will at first analyze the financial condition of your business. The counselor will also take into account the commercial debts, if any. Then, he/she will suggest suitable ways, by following which, you can get your business back on the right track. The counselor will also work with you to set financial goals and also make a plan to achieve them. It is advisable that you go for a face-to-face counseling, which will help your credit counselor to understand as well as give expert advice on your business related financial problems. How to choose a commercial credit counseling service You can browse through internet in order to find a commercial credit counseling service in your locality. However, you should consider the following points in order to choose a good and reliable credit counseling service. Check the company’s reputation from Bette...

When a borrower is unable to meet the conditions of a mortgage, the lender may foreclose on the loan. Foreclosure is a process, by which the lender can gain his possession on the property, against which the loan was issued. The lender who forecloses a loan demands the full loan amount. On the other side, the poor borrower, who is not in a condition to make monthly payments, is unable to fulfill it. This way the lender gains the right to sell the property at public auction and collect the debt amount. But there are some good tips to avoid such a situation. Following are the 5 tips to avoid foreclosures. 1. Investigate: Every time you make a purchase, probe and scrutinize. Lenders offer different interest rates. Check out how much you can spare. Access, how much the loan would cost you? Read and re-read the written document. If you don’t understand, do not hesitate to ask for an explanation. 2. Maintain a sound financial health: Go for a financial counseling. Your aim should be to ma...

While searching for car insurance, many of you may look for cheap auto insurance policy. However, it is not at all advisable to overlook quality in order to obtain a cheap insurance. Instead, you should search for the right amount of coverage at an affordable premium cost. Ways to make your auto insurance affordable: Finding affordable auto insurance is not as tough as you think it to be. Here are 9 ways that will help you to find a cheap auto insurance policy. These strategies will also help you to make your existing policy more affordable. 1. Check your credit score: Before approaching any insurance company, it is quite necessary that you check your credit score. If you have a high score, then you’ll be able to reduce the premium cost. This is because your insurance company will check your credit score before providing you with the coverage. Actually, your insurer tries to predict whether not you’ll be able to pay the premium on time. 2. Install safety dev...

Family income benefit helps to provide you with a series of monthly payments to those named in the event of your death. These payments begin from when the claim is made and will continue until the end of the plan. This type of policy is designed to help provide a regular form of income in the event of the death of the main breadwinner in the family. It is therefore important that you choose an adequate level of cover so that you will have financial security in the event of the death of the policyholder. Advantages • Family income benefit can help to provide you with an inexpensive form of life insurance cover. • Helps to provide the family with a regular monthly income. • The premiums for this type of cover will often be lower then for other insurance options such as level term life insurance. Disadvantages • If the family relies on two incomes then a joint policy will only pay out in the event of one death and not both, for this reason you may find that it is better to take out ...

Don’t touch the illegal ones that exist. Try to avoid any agency which offers you to repair your credit data for a fee. Some firms advise to perjure yourself and swear that you didn’t receive a CCJ (County Court Judgment) even if you have. Once it’s illegally removed they will always try to quickly negotiate a settlement with the lender, before it is served again. Don’t go near them! And don’t even bother with the legal ones! Others will offer to negotiate with a company you owe money to after a CCJ has been served legally. If you wish to offer a settlement (not necessarily even the full amount) to them, you have an option of including a condition of final settlement that the CCJ should be removed. But, still do not bother to pay anyone for this. The free debt counseling agencies, like the Citizens Advice Bureau and Consumer Credit Counseling Service, will do it for you at free of cost. In fact don’t even go down this route! Choosing either method of legal or non legal credit repair...

Using a credit card or applying for a loan implies that you must be having a credit history too. The credit reporting agencies or credit bureaus gather information about your debt account and record the same in what we call the credit report. From where do the credit bureaus get your information? Your information is provided by the banks, credit card companies, and mortgage companies. After careful evaluation of your credit history, your credit score is calculated. Whether you are eligible for a loan or not depends entirely on your credit score and your credit report. A lender will call up the credit reporting agencies every time you ask for a loan. There are 3 credit reporting agencies  Experian , Trans Union and Equifax having the largest database of consumers in United States. Role played by the credit bureaus Basically all of them perform the same function of collecting credit information and reporting the same. They usually gather credit information in the follo...

It becomes quite difficult for a person to meet everyday expenses when he/she is suddenly laid off from the job. In such a situation, unemployment loans can help to meet your everyday expenses. Types of unemployment loans: There are 2 types of unemployment loans available to you, namely, secured unemployment loan and unsecured unemployment loan. There 2 types of loans are discussed below. 1. Secured unemployment loan – You can take out a secured loan if you have a valuable asset that can be used as collateral. You can pledge your home or your vehicle if you have a free and clear title to the asset. One of the greatest advantages of obtaining a secured loan is that you may get comparatively low interest rates on such loans. Moreover, it is relatively easier to obtain such a loan even with a bad credit record. However, there is a risk attached to it. You may lose your asset if you’re not able to pay back the loan on time. 2. Unsecured unemployment loan – As the name sugge...

It is quite important to do a personal finance planning if you want to have a solid financial footing for you and your family. In order to create a personal financial plan, at first, you need to evaluate your current position and then determine your short and long term monetary goals. Read on to find how to create a financial plan in order to achieve your monetary goals. 3 Steps to create a financial plan Personal finance planning is not at all a difficult task. Just follow these 3 simple steps to create a personalized monetary plan that will help you to secure a solid financial footing. 1. Assess your current financial position: The basic requirement for creating a financial plan is to determine your present position, that is, to assess your cash flow, net worth, your investments and your debt-to-income ratio. Cash flow: Calculate your total monthly income and expenses and check whether or not you’re getting a positive cash flow, that is, whether you can s...

The prevailing credit crunch has led to high rate of unemployment, financial hardships, and the consumers are being bombarded with high interest rates, reduced credit limits. There were some cardholders whose accounts were closed. The credit card companies were blamed for not informing these changes to its customers. It is a well known fact that the subprime mortgage crisis has led to a liquidity crunch. Lenders have become exceedingly cautious. Subprime lending can be partially held responsible for giving rise to the credit crunch. The changes introduced in payment policy of plastic money were mainly to protect lenders from incurring any further financial loss. The number of credit cardholders defaulting in their payments has also increased manifold. However, as per data collected from one of the major credit card company, the number of unpaid bills for plastic money may stabilize over the next couple of months. One of the credit card giants American Express ann...

Experts are of the opinion that the financial markets are gradually recovering. Economists say that the gradual recovery of stock markets as well as rallying stocks should not confuse investors. However, there is a wave of optimism in the markets and this can serve as an economic stimulus by itself. The liquidity crunch forced many consumers to reach the threshold of insolvency. Even though there are signs that the economy is recuperating at a snail’s pace, financial experts don’t rule out chances of a deteriorating economy due to the ongoing credit crunch and it’s after effects. Repairing equity or the economy? The bailout programs introduced by the government have managed to restore consumer confidence to a certain extent. And it appears that these bailout programs are aimed at rebuilding equity for tax payers rather than helping the economic survival of the country. It has also helped consumers regain confidence to some extent. Recuperating the economy is a l...

Companies issue stocks /shares in order to grow. By issuing shares, a company is able to raise the required amount without going into debt. People buy stocks to get profitable returns thereby supplying the necessary funds to the company that helps in its growth. However, it is quite necessary for an investor to know what stocks to invest in. A good investor should know how to make profit both from bearish and bullish stock market, that is, when the prices of shares go down and when it increases considerably. Bullish and bearish stock market The terms “bullish” and “bearish” are quite common to a stock market investor. Before understanding the significance of these 2 terms in relation to share market, you should know that both of them describe long term trends and not short term changes in the stock market. Usually, bullish and bearish stock market is measured in terms of years. Go through the following lines to about these 2 types of stock market in details. • Bullish sto...

You can invest in shares or stocks that can yield profitable returns in future. However, it is quite necessary to invest in a profitable share; you can ruin your financial condition if you don’t know how to invest in a profitable stock. Therefore, before you start trading, you should know the basic principles of stock trading and how a stock market works. Why companies issue stock Companies all over the world issue new stocks or shares in order to raise more capital than it can borrow. It also saves the company from making principal payments and periodic interest payments to the creditors. However, there are some disadvantages of issuing stocks. By issuing stocks, the company or the principal owners need to share their ownership with all the shareholders. Moreover, the shareholders have a voice in policymaking that affects the company operations. By owning stocks, the shareholders own a part of the company. Therefore, as a shareholder, you are entitled to sha...

We all can guess the life after filing bankruptcy . You will hardly get loans from any creditors or financial organizations. Your credit score will be highly affected for bankruptcy filing report. As creditors always check credit report before finalizing any loan, so it will be really tough for you to get loan from them. But don’t scared, there are some organizations who can give you loan with high interest. Here you will find some important tips which will help you to put your life back on track after filing bankruptcy: You should take the responsibility of your present situation on your own. Be sure that you never fall in debts again. You must look at your spending habits critically and have to stop them immediately. Don’t use many credit cards . Only use one at the time of extreme emergency. Make a budget every month according to your income. You always have to have the good habit of saving. Be mentally prepared that in each month you will save something at any ...

It has been a very interesting week for the newspaper industry – with former KGB spy and Russian billionaire Alexander Lebedev purchasing the Independent and the Independent on Sunday being bought for £1. Meanwhile, Rupert Murdoch’s Times and Sunday Times newspapers have announced that they will be charging £1 a day or £2 a week to access from June. With rumours circulating that Lebedev will do the same as he did with his other newspaper, the Evening Standard, and offer free copies of the Independent, we have two opposing views on the best way to halt the crisis PR level decline in newspaper revenue – whichever proves the more successful could go a long way to shaping the future direction of the media in this country. The idea is for Murdoch’s other titles – The Sun and the News of the World to move the same way. The Times Online currently has about 6 million unique users a week, and it will be interesting to see what criteria News International has to judge success...

Are you not able to pay your credit card bills on time? Are creditors and collection agencies harassing you? A debt management plan can help you to overcome your present situation and repay your outstanding debts. A debt management plan can be defined as a structured repayment program that helps you to repay your debts in a systematic way. Before enrolling in such a program, it is advisable that you know the pros and cons of debt management in order to understand it in a better way. What happens in a debt management program? When you enroll yourself in a debt management plan/program, at first a credit counselor analyzes your financial condition and the amount of your debts. Then, the counselor communicates with your creditors in order to reduce the interest rate on your debts. He/she also decides upon a monthly payment and also gets it approved by your creditors. All you need to do is just make the monthly payment to the counseling agency, which distribut...