Family Financials

November 2013

Dealing With Debt Settlement Wisely

Dealing With Debt Settlement WiselyReducing debt is something we all strive to do. There are a number of debt settlement companies in areas like Dallas and other metropolis areas that can help in negotiating terms with debtors in order to rid the individual of overwhelming debt.

The consumer will need to be careful when making a decision to use a company or not. They should be aware that many of these companies operate for a profit and that they do not have any government regulations for their operation.

Another issue that the consumer will need to be aware of is that these companies do not always have the ability to keep ones credit score from being harmed. While the debt may go away. the bad credit report may not. Be sure to consult with the company and ask very pointed questions of settlement is being sought to fix or maintain ones credit score.

A debt settlement company in Dallas or elsewhere will assess the situation that the consumer is in. They will take the name of the creditors and how much one owes them. They will then assess how much the consumer needs to pay them in order to negotiate better terms for the individual. The individual, after terms are reached, will then directly pay the settlement company and not the creditors.

In all actuality what the company does is simply put the money that is paid to them for a debt into a savings account. They wait until it reaches a certain amount and then contacts the creditors. If they can reach an agreed upon amount that the creditors will take to rid the individual of the debt, then they remit payment to the creditors. If not, they continue to save the individual’s payments until an amount can be settled upon.

This makes dealing with these companies a bit iffy. If the company cannot reach a settlement amount with the creditors they will eventually pay off the entire debt for the individual through lower payments that take longer. After a settlement (or the entire amount is paid) then the individual will owe the settlement company money.

These companies also do not guarantee that a negative report will not be entered on to their credit score. The consumer could go through all of this renegotiation of debt and then still have a negative impact on their credit. This could affect their job, acquiring an apartment or house, or even getting a cell phone.

Overall, the individual should be very wary about who they deal with and what they can do to help them with a credit situation. Always ask questions and never assume an answer when dealing with these companies. the best advice is to get all promises in writing before entering into any type of agreement with the company.

Money and Markets Advice

Money and Markets Advice

Stocks can go up or down on a whim so you need to make sure you know what you are doing before you get involved in the stock market. Money & Markets advice is some of the best in the sector. They have a great group of nine individuals who regularly add articles and opinions to their website and newsletter making them great at providing up to date information in the financial world. One thing they talk a lot about are stocks. Stocks are good if you are smart because you can make a great return, however be really cautious because at the same time you could lose everything on a whim.

That being said it is important to be well educated in relation to the stock market before you decide to invest. That is where these experts come into play. Two great pieces of advice to keep in mind that I’ve learned from Money & Markets is that you should invest in broad based hedges so you are better protected against a potential decline in the market, and only invest in high quality stocks that are also better protection against declines in the market. Stocks are considered to be a cornerstone of a financial portfolio so it is important to have a great understanding of them and how they work to best increase your chances for making a good profit.

As I assume you already know stocks are a share of ownership in a given company. Shares, equity, and stock are all synonymous terms. That being said there are a couple different types of stock. Common stock is part ownership of a company and this is the most popular and common type of stock out there. This type of stock also has the ability to yield the highest returns over the long term. Next there is preferred stock. This is similar to common stock but some of the rights are different. Typically with preferred stocks you are guaranteed a fixed dividend forever.

This is nice because common stocks are volatile. In the event that a company goes through liquidation, preferred stock holders are paid before common stock holders. Now that we understand what stocks are, and the different kinds, let’s talk about how stocks are traded. Stocks are traded on what is called exchange which is where buyers and sellers meet together and decide on a price. This can either happen in person on a trading floor, or simple via electronic online transactions. There are a few different exchanges you’ll want to be aware of. The New York Stock Exchange is the most prestigious in the world. This is the exchange that the largest companies in America utilize. Much of the trading here is done face to face on a large and noisy trading floor. Next there is the Nasdaq. This is an exchange that utilizes electronic means for trading as there is no physical sales floors. Many large tech companies like to use Nasdaq as their trading hub. Lastly a third exchange is the American Stock Exchange which trades small cap stocks and derivatives mainly.