The Challenge of Financial Independence

Everyone wants to be financially independent. At first instance the term means the financial liberty which comes with the self earned income. You can earn this income either by working for someone or by working with someone on a certain project or by venturing with your own business. Every method helps you to earn your own money which you can use the way you like. But every method has its own pros and cons and every form comes with its own set of challenges. 

If you work for someone you don't have to bother about the initial capital that you should have to start the venture. You also don't have to care about the staff and employee management and other types of management responsibilities which come handy. You also don't have to bother about and search ways to increase your profit to keep your business running. 

But you have to work for your employer and you have to follow the rules laid down no matter how rigid or flexible they are. The returns that you earn also depend on the type of job in which you are. If you manage to secure a job with a reputed organization and manage to get a high profile then you might earn a handsome salary but that will be fixed and this will limit your financial independence beyond a certain limit.  Here you depend totally on your skills. And what if the company to cut its costs asks you to leave the organization? 

If you enter into partnership and work on a certain project with someone then it will give you a level of financial independence. Here you don't have to rely totally on your skills. Whenever you enter a partnership you work with other person and share your losses with him. But at the same time you have to share your profits also in proportion according to your partnership contract. What if there is a disagreement over a certain matter related to your work. There are ways to resolve them, no doubt, but here again you have to compromise over certain things, you have to overlook your interest so that you can carry on with the partnership in future. This method of financial independence thus is more challenging than being employed under an employer but at the same time give you more financial independence. 

Venturing your own business

This one is the most challenging job which you can take but this is the form which gives you the financial independence which we all crave for. This is the riskiest job which you can take. But as it goes higher the risk, higher are the returns. You can either take up a manufacturing contract or establish your own franchise or establish a new venture. 

The challenges are many. It might be possible that your business may not give you the returns in initial stages. Moreover own business comes with different management problems. But this is the mode which gives you the real financial independence. 

Debt Collection Process

Before we discuss the debt collection process let's clear our concepts of the debtor, creditor and collector. It is the job of the attorney to collect debts from the debtors; so, he is the collector. Debtors are the individuals who owe a debt to any other person. If I took a personal loan from a bank and I am paying this bank a regular installment then I am a debtor of this bank till I pay off the amount with interest. The creditor is the individual who lends you the money. In this case my creditor is the bank X. Now let's discuss the debt collection process. 

How the debt collection process works? 

It is the job of the attorney to make sure that you or me or any individual owing the amount pay the amount in full. For this he may take the service of the collection agency. But much before this when the situation is not that serious you get the friendly reminders form your creditors which remind you of the amount that you have to deposit. 

The next stage involves somewhat strict remainders which include that if you miss the deadlines you will be charged a certain amount of fine. As this stage pass and your creditor consider you a stubborn debtor, he takes the service of the collectors. The attorney is a designated authority who makes sure that you deposit the amount within a certain time period. 

The collectors will then remind you often about the amount that you owe and the installment that you have to pay to your creditor. The calls become harassing as the deadlines arrive and all this lasts till you either take the agencies offering the debt programs or you reach out to your creditor and pay the amount in full or negotiate with him your interests.  

This is a brief insight of how the debt collection process works. To get a clear idea you should also know your rights as a debtor. 

What are your rights as a debtor? 

The Fair Debt Collection Practices Act says that the debtor should be given a fair treatment. The law further says that 

• The collectors cannot threaten you or use any such method to make you pay your debt. 
  
• They can neither harass you nor can use any violent ways for debt collection. 
  
• They cannot publish your name in public. 
  
• They cannot harass you by phone calls. 
  
• They cannot collect an amount more than the amount which you owe. 
  
• They cannot force you to accept the calls.
  
• They cannot jail you. 
  
• They cannot take away your house or property.

You can use your rights if you receive any threatening calls. You can also ask the collectors to remind you in written and for this you can write an application to the collector requesting him to do so. But make sure that you retain a copy of the letter with you as a proof.

Common Credit Mistakes

Credit mistakes spoil our credit score, a vital three digit number which reflects our credit worthiness and help us to qualify for different types of financial services which the financial companies and banks provide us. 

Financial companies extend to us the credit facilities in the form of loans, overdraft, credit cards and many more. For this they charge us a fee and an amount in the form of interest rates. It is up to us to keep up with the deadlines and pay them the amount on time. We score negative if we fail to do so. We fail because we perform certain mistakes. These are some of the most common mistakes which we generally overlook and never pay attention. 

In order to maintain a good credit score it is important for us to avoid such mistakes and maintain a good reputation with our creditors. 

Here I will discuss the most common credit mistakes so that you can avoid them and prevent your credit score from getting spoilt. 

Let's hold multiple credit cards 

Holding too many credit cards means that you have an access to too much of credit.  This will appear as such on your credit report and this will in turn reduce your credibility with the creditors who will shy away from lending you any more amounts. 

Credit cards increase your purchasing power. More you use them, more amounts you have to pay and in case you are not able to keep the deadline, interest rates build up and you are left with large bills which you have to clear off at the end of the month. Credit cards get you into debt and with too many credit cards in your wallet you have to exercise a lot of patience, willpower and discipline so that you don't end up with piles of debt. 

Let's pay only the minimum dues 

This is the most common mistake which we all make. Paying a minimum amount is only is fruitful if you hold too much of debt and you have plans to pay off the credit card balance with maximum interest rate. But if you are simply not in a habit to pay the amount in full then the effect for you can be devastating. Postponing payments will increase your interest and your debt amount. Moreover this will also earn negative marks for your credit score. Remember that you still have to pay the amount to the company. You cannot shy away. 

No harm in exceeding credit limits 

Once you exceed your credit limit you are liable to pay additional fee and interest for the extended limit. 

Credit report is alright. No need to check it. 

Errors in credit score are not uncommon. Therefore it is wise to cross check your credit report every time you receive it. Your credit report is your responsibility and therefore it is your duty to examine it carefully and get it corrected. 

Methods of Creative Financing

Creative financing is all about using a financial means other than the traditional ones like mortgage loans etc. to own a real estate or any other asset.  Creative financing is the word which is fast catching up. Individuals are using creative financing to acquire different types of assets. 

Any legal method which delivers fast cash comes under creative financing. There are different ways by which you can do this. 

Look around your home. Do you owe any antique or any such thing which are of no use to you? If you have, then sell them. If you owe a used car then you have to which is too old to run on roads then contact the dealer and sell it in parts. You are not required to pay a fee if you register your car with a dealer online. You will be amazed to find the number of individuals who are ready to pay for the parts of your used car. 

If you own an unused land then scan it carefully. Find out if it has any wild growth of bushes or trees. If there are any then get them sawed. Sell the woods to earn the money.  

If you own a car which you seldom use then rent it for commercial purposes. And the money that you earn from your vehicle you can pay your mortgage loan or use it to fuel your business needs. 

If you have applied for a new home which is in good shape then rent it and pay a part of the rent towards the mortgage loan that you applied to own the property. 

If you own a land that is on the outskirts of your town then lend it or lease it to a company which is on a look out for such lands. And you can use the part of the lease to pay back the loan amount that you have to pay. 

Consider eighty to twenty home mortgages. This is a combination of two mortgages one primary and the other secondary. This reduces the liability towards a single lender. With this loan you finance hundred percent of the finance and avoid the monthly installments payment. 

Contact the hard money lender. These are the one who lend money at relatively higher interest. They are the lenders other than the banks and private lending companies which operate in the financial market. 

Reach out to your friends and family for the help. Ask them the money that you fall short of and borrow from them the amount on their conditions of return. 

There are many more ways to arrange for the money other than the conventional ones. You just have to be a little more observant and creative. When it comes to creative financing, every thing holds importance and every penny counts. So, look around and pick out the things which you can use to generate the cash that you need. 

Title Insurance

Title insurance is made up of two words-title and insurance. Let's understand both the terms separately to find out what title insurance is all about.

What is a title?
Title is a legal term which gives you all the legal rights to own, use and sell a piece of land. If you have a title of a land then this means that you own that land and you have the right to use and sell it. If there is a problem with the ownership then the title of the property is questioned.

What is insurance?
Insurance is a contract between an individual and an insurance company. The individual deposits a certain sum of money called as premium with the company and the company in turn agrees to pay a predetermined sum to the individual or his family in conditions of any uncertain event or claim.

Then what is title insurance?
It is the insurance against the problems related to the title. The title insurance thus provides you with the financial cover and protects you against any losses due to lien, defects in the title or lawsuit against your title. This insurance is available in Canada, Mexico, China, Europe, Australia and UK.

Why is title insurance important?
It protects you in case there is any defect with the title of your property. The problem with the title arises when someone in the house or any relative files a lawsuit and questions the ownership of the property. The title insurance gives you the cover for the legal expenses that you have to bear to defend yourself in case there is a claim against the property title.

The title insurance has its existence till you or the successor of the property is interested in the property of the title. But as soon as the property is sold to any other person the title and the ownership rights are transferred to the new person and thus this person has to purchase the title insurance policy.

What is the procedure for title insurance?
You can apply for the owner's title insurance policy. To apply for title insurance policy you have to visit any reputed insurance company dealing with title insurance. As you approach the company and show interest for a plan the company will first inquire about the title for which you wish to take a cover.

The company will first send its officials to find out the risks associated with the title, if any. For this they browse the records and plot the chain of the title and find out the claims for the property title if any. Through this search they endure that all the liabilities associated with the property are paid off. They further try to eliminate risks before they approve your application.

Advantages and Disadvantages of Online Banking Services

One click of mouse opens the world in front of us. Internet in fact is one of the most applied and successful technology of our times. It is the network which links us to others, connects us and lets us to share our ideas. Every type of business no matter how small or large it is relies on internet in some form or other. They may either provide their customers with the additional facility or they may be simply being there on cyberspace without any virtual existence. Same thing holds true for banks as well.

Banks are there in the financial market and they are there for business. They are in financial business providing different financial services to their customers. Online banking is an additional service which the banks provide to their customers.

This is a type of value added service which the banks extend to their clients. It is also known as PC banking, home banking or electronic banking. This value added service enhances the accessibility to account and processing of the transactions.

The benefits which online banking brings for us are many. We can access our account without stepping out from our homes. We can access the account any time and from anywhere. This is in fact a twenty four hours banking which is available to us every time we switch on our computer and visit the site.
Online banking facilitate us to perform any type of transaction, sign e- cheques, pay our clients, make transfers, apply for bank drafts, transfer money from one account to another, check our account balance and lot more. Online banking gives us the flexibility to perform the transactions and access to your account anytime you wish to do so.

What more? We can access different accounts in different banks simultaneously. We don't have to run from one bank to other to find out how much we hold in your account. We also don't have to visit the nearest branch to inquire about the latest account schemes and the loan transaction process.

Banks do provide all the information through their sites. But understanding the method to access these services is what is seen as a drawback of online banking. Individuals unfamiliar with such internet services or using the service for the first time may find it hard to understand as to how to perform different transactions. They often confuse as to press which button to complete the transactions.
Setting of the account and finding the right option may take some time. Sometimes certain options may be embedded deep in some option and digging them out may be a hard job. To overcome this best thing is to first brows the site and familiarize with it.

Trust is also one factor which is seen as a drawback and this is the main reason why most of us are still not using the services.

Foreign Investments in Argentina

Investing in Argentina is now a lucrative option. There are several reasons to support this statement. Argentina was considered an expensive country. That was in the nineties but the things have changed after as the government devalued peso in 2002, after the country faced the worst economic crisis of its times.

Today the foreign companies are treated at par with the local companies operating in Argentina and this is what making Argentina appealing for the investors.

Why you should invest in Argentina?
Argentina has a free market economic system. It is a democratic country and the laws there treat the foreign and local firms equally. Thus the foreign firms don't have to practice and work under a definite set of rules laid down exclusively for them as it happens in many foreign shores. Therefore the foreign firms can enjoy an access to the large population of prospective customers and give a stiff competition to the local firms.

In Argentina foreign firms are encouraged to invest in broadcasting, newspaper, magazines, cables, petroleum, nuclear power generation and nuclear mineral mining. To motivate the firms for investment the procedure of investment is kept simple which does not involve lengthy paper works or approval from the authorities.

The foreign firms are also given unrestricted access to the financial markets and moreover they don't have to take the approval of any government department or the central bank to transfer the profits form Argentina to their nations. The foreign firms like the local firms are eligible to apply for the economic development incentive programs.

The foreign firms are also given tax exemptions but like local firms they have to meet some tax liabilities. The tax liabilities are assessed on the basis of the consumption and export.

The foreigners are treated equally at par with the local citizens and hence have the same civil rights as the citizens of Argentina. The foreign investors can thus open a joint venture, Limited Liability Company, branch office, sole proprietorship or a stock company.

Thus with the reduced paperwork involved for opening a branch and the freedom to relocate their profits to any of their desired location at any time are some of the benefits which make Argentina an appealing destination for investment.

If you wish to open a branch or start your business in Argentina then find out about the documentation and the requirements that you need to fulfill in order to start your business or investment. For this approach the local authorities giving such services. Choose a bilingual staff to start off with the process and avoid any complications due to misunderstanding.