Watch Out! Scams That Come Out For the Holidays

Gift Cards (Photo credit: PersonalMoneyNetwork)

The holidays are an expensive time when people spend large amounts of money on their families, friends, or themselves. It is often helpful to find deals and discounts that save money. Buyers must beware, however, for the ever-present scammers and swindlers who will try and separate consumers from their money. Some scams are always around, but some come out just for the holidays.

The Charity Scam

Over half of American adults give to some sort of charity during the holidays, and criminals know that. Most of the charity scams are accomplished over the telephone in the form of cold calls. Scammers will call your phone, and state they are representing some sort of charity. They will say all the right things, and have all the right information; however they will not be affiliated with any charity. Eventually they will ask for your personal information, to include your banking or credit card information, and take you for as much money as they can.

Special attention should be paid to charities claiming to represent emergency services workers such as police, fire, and veteran's groups. Often, scammers will claim to represent these groups in an effort to garner additional sympathy from you. Even if the name of the charity they are using is legitimate, the callers may not be. If you feel like donating, contact the charity directly instead of responding to a received phone call.

Cybersquatting

This type of scam is more high-tech, but even more dangerous. These days, consumers complete a fair portion of their shopping online. When done correctly, you can receive discounts and additional savings by shopping online. When searching for cheaper prices online, look-a-like websites are set up to fool you into buying from them instead of the legit site. Make sure the online coupons you run across have details that distinguish it from others like it that are scams.

Often, the website itself will be an exact replica of the proper site, with the only clue to the scam residing in the address bar. The website will be slightly altered in some way, and if the link has been clicked from a search results page, it is very easy to inadvertently put in your credit card information into the fake site.

Fake Gift Cards

In recent years with the explosion of gift card sales, retailers have set up in-store displays of all kinds of cards. In most cases, you can buy more types of gift cards than the average store brand. It is not uncommon to happen upon a rack in a department store with many different gift cards, from restaurants to online retailers. It turns out that scammers have targeted these cards with frightening results.

Using a handheld scanner or by simply peeling off the sticker on the back, thieves copy the gift card information and place the cards back on the rack. They simply lie in wait for the cards to be purchased, and once they discover the card has been bought and activated, they use the pilfered card information online before you even get a chance to use it. Instead, you should buy the gift cards directly from the retailer’s website or at an attended customer service counter.

Scams have always been around, and the tactics will continue to change. It’s important to remain abreast of new techniques and ways to protect yourself and your money.

Money Management Tips

Budget (Photo credit: Tax Credits)

Buying a home comes with a whole list of new expenses, including a mortgage, insurance, and home maintenance. It’s best to have a working budget firmly in place before purchasing a home in order to avoid financial trouble further down the road.

A solid budget is one that meets both your short term and long term needs and goals. The key to any successful budget is managing money. Every budget looks good on paper, but remember, it’ll only work if you stick to it.

Making a Budget

When making a monthly budget for your household, you need to be sure to include all your expenses, including possible surprises or emergencies. Rent, utilities, car payments and groceries are the basics, but there are other expenses that can really add up. These extra expenses are the things that can really derail a budget if you don’t plan for them. Other expenses include savings, gas, entertainment, medical expenses, clothing, and shoes. Keep track of each expense, add them up at the end of each month, compare them to your income, and make adjustments where necessary.

Building Savings

The key to weathering any financial storm is a savings account. Unexpected expenses are going to come up in life, and there’s no way to stop them. Kids break arms, employees are laid off, roofs need to be replaced, and cars break down at the most inconvenient times. A savings account is the solution to all of these problems. It’s best to have at least 3 months worth of income set aside in savings before buying a home, so you won't have to worry about losing your home every time things get rough. If you can swing it, 6 months is even better.

Covering Your Assets

Insurance premiums seem like a waste of money when you send out the payment each month and receive nothing in return, but they are a real life saver when you need them. Suffering an uninsured loss can lead you to lose your vehicle, all your savings, and even your home. Protect all of your hard work by staying properly insured.

Managing Debt

Debt is a normal part of American life, and it can be healthy for your finances if you manage it properly. Your mortgage, and a couple of well-managed credit cards are great for your credit, but be careful not to get in over your head. If you ever find yourself using credit to make payments on other debts, you know you’ve got a problem. You’re debt should always be kept at a level where your monthly income is enough to cover all of your payments, with plenty leftover for other expenses.

Planning for the Future

All of the budgeting tips listed above will keep your head above water for now, but what about in the future? At some point you’re going to want to retire, and the time to plan for that is now. Meet with an experienced financial advisor to find out what kinds of investments and accounts you should be participating in so you can meet your long-term financial goals.


Author Bio: Tiecen Anderson
In her former life, Tiecen worked in sales and marketing for a large insurance company. Before starting a family, she decided to switch gears and pursue a career that would give her a little more time at home. She finished up her degree from California Sate University in 2008 and started picking up work as a corporate web content writer. She enjoys learning new things every day as she works with a wide variety of clients, like Axiom Financial.

5 Secrets to Getting Your Business Loan Approved

English: (Photo credit: Wikipedia)

Applying for and obtaining a business loan can feel like an overbearing process. Every year, thousands of people apply for loans for their business, be it a new business or a credited one, and do not get approved. Here are some facts and tips to make sure you can secure the funds you need.

1. Be able to articulate the future

Borrowers need to have an updated business plan. Show the lenders how the business is expected to grow in every aspect. Have a detailed report of how you believe you will profit from the loan. More and more lenders and starting to dig deeper into the plans of businesses. You should talk about all aspects of your business from employees, to management, to cash flow. Lenders will feel much more confident in loaning their money if they feel good about your plans and know exactly what the money is going towards.

2. Know Your Business History

When it comes to getting a business loan, your past history definitely becomes a major supporting factor in the decision of whether you are acceptable for a business loan. Lenders will review past business earnings as well as business history to help decide if your request warrants an approval. New businesses can still get a loan without any history by having a well-organized and situated business plan.

3. Be smart in other financial aspects of your life

When applying for a business loan, lenders will examine all aspects of your financial life including your personal credit. Personal credit can play a huge role in deciding if you are granted approval for your loan request. To the lenders, how you manage your personal expenses are most likely how you are going to handle your business expenses.

4. Present yourself well

Bankers do not want to give their money out to people they do not believe can pay it back. First impression makes a huge difference when meeting with a loan advisory board. You should come into the meeting with a detailed business plan extremely confident, without appearing needy or helpless. Dress professional, be clean-shaven, shake hands, look the lenders in the eye and be stern. If you present yourself well and provide a great business plan, it gives the lenders confidence in you, they will feel better about lending their money to you.

5. Build a board of advisers

Building a board of advisers will put you over the top in your loan seeking process. If possible, put together your team of accountants, management, legal experts, marketing advisors etc. Some small businesses simply cannot compile advisers, however. Contracting your business with an agency, such as the CPA who understands the world of business and can work on tax returns, looks just as good in the eyes of the lenders. This compiled with the rest of the steps stated above will show lenders how organized and thought out your business plan is. The more detailed your overall plans are, the better bankers will feel about lending you money.

By following these 5 simple tips, you’ll give yourself the best chance of getting the business loan you need.

Author Bio: – Jason Bengert is a professional blogger and works at Park Place Equity. He is a fun loving person and his areas of interest are finance and technology. You can connect with him at Google+.

Getting Out From Under the Mountain of Credit Card Debt

Credit cards (Photo credit: Wikipedia)

We all know that credit cards are a convenient way to pay for purchases when you're on the go or in between paychecks. According to The Nilson Report, as cited by Forbes, credit card transactions made up for a little over half of total consumer spending in 2012.

Unfortunately, those very benefits also make it incredibly easy to find yourself under a mountain of debt that could take years to pay off. To top it off, you're losing money each month in interest and fees as you pay the balances down. With a little planning, you can chip away at your credit card debt much faster, but you'll need to decide which approach works the best for you first.

Snowball

The debt 'snowball' approach to credit cards is fairly simple. Determine a budget and decide how much extra you have each month to put towards credit cards while covering all your other expenses. Cut out unnecessary spending, such as restaurant meals, as much as possible for now so you have more to put toward your debt clearance.

List all your credit cards in order of total balance from smallest to largest. Each month, put all the extra money you have toward your smallest card and only make the minimum payments on the rest. Once a card is paid off, apply the minimum payment for that card to the next card on the list in addition to whatever you're able to apply based on your budget. As you work your way through the list, you'll see the 'snowball' effect as your payments become larger and larger, working the debt down faster and faster.

The debt snowball method is beneficial in that it's easy to follow, and the results you'll see will encourage you to stick with it. But you may not be paying the debt in the most advantageous way regarding interest using this method.

Interest Order

Under an interest order approach, you'll still need to make a budget to determine what you can afford to put toward your debt, but you're changing the payment order. Instead of listing debts by balance, you'll list the credit cards in order from highest APR to lowest APR. The interest method saves you money by reducing higher interest balances faster, but it isn't as simple as the debt snowball.

Before you commit to a method of credit card debt elimination, try to decide which method is most likely to keep you motivated over the long term. While you can save more over time using the interest order method, it may not be ideal if you're the type of person who needs more immediate results to keep yourself on any sort of program.

On the other hand, if you're a numbers person, the interest order approach may work better for you than the debt snowball method because you'll be keeping a tally of your savings. Regardless of which way you decide to go, make sure to cut as much spending as possible to work down your debt quickly. 

Image credit : http://www.flickr.com/photos/68751915@N05/6355848263/

Stop Your Employees Fiddling the Paper Work

The Greater London Police were called in to investigate fraud committed by staff working for Serco in August 2013. It was discovered that employees had fiddled the paper work to claim prisoners were being made ready to be transported to court, when in fact they were not. They were working for Serco who had been awarded a contract worth £285million to transport the prisoners across London.

Serco had been aware that there were some internal problems when persistent delays were reported in the transportation of the visitors from courts to jails in the summer of 2012. As a result of the delays they created an official improvement notice but that wasn't enough to solve the problems. Instead of improving their work the employees simply fiddled the paperwork. In addition to this problem Serco has also been accused of overcharging for their contracts and as a result they must allow an outside forensic audit to find out if they have been acting and performing dishonestly.

Protecting Your Business

Fraud happens, it’s something that costs businesses in the UK millions of pounds and it can leave companies closed and individuals behind bars. As a business owner it’s very important that you try to protect your company from those who are always looking to make money off the back of others.

The Greater London police have provided a lot of advice regarding fraud for business owners. Fraudsters find all sorts of ways to target businesses, whether they are attacking you from the outside or internally. You may be targeted by a lone fraudster or a gang, either way you must be aware of some of the methods that could be used.

Transferring Money

Criminals will use telegraphic transfer requests to take money from your account. The criminals get hold of your bank details and most commonly send a transfer request from another country. A letter is produced and sent to your bank requesting the money and the bank will send the amount that’s been asked for.

An Inside Job

Employees are increasingly being involved in cases of business fraud. The individuals often work on their own to try and gain personal details in order to commit fraud through identity theft. The criminals will come to work for you with the intention of stealing from you but often they will target other employees within your company. The employees may be questioned in a relaxed or social setting and unwittingly give away some information that the criminal can use to their advantage. Alternatively they may be threatened or blackmailed into delivering financial data of the company.

Suspecting Fraud Within Your Company

If you think your company may have been targeted by fraudsters you will need to discover what’s been going on. You can use your internal audit systems and enroll the assistance of forensic accountants in London so you’re fully aware of the extent of the damage to the assets of your company. You must also make a report to the police who will be able to investigate the incident.

The Essential Guide to Trading on Margin

Fundamentally, trading on margin is investing in a given asset using a loan from your broker. There are a number of advantages and disadvantages to margin trading that make it potentially worth your time, and if you’re willing to take a risk with margin calls, this should be a method of investment that you should know about. 

Here’s an essential guide to trading on margin.

Fundamental Facts

You can’t trade on margin if you have a standard cash account with your broker. Instead, you’ll need a margin account where you will need a minimum investment amount of $2,000 – though some brokers will ask you for more. This amount acts as a deposit which then allows you to make trades.

Once you’ve made an investment and closed your position, you’ll need to pay back the deposit you loaned from your broker to make the investment in the first place, and then you’re free to take the rest of the money. Of course, if you fail to be profitable, you’ll still have to pay the deposit to your broker.

Advantages of Margin Trading

One of the greatest advantages of margin trading is that it allows you to make larger investments than you’d be able to use a cash account. 

This is because you’re making an investment using the loan which you’ve borrowed from the broker. This means you could potentially make investments 2, 3, or 4 times the amount of money you actually have as capital. 

If you’re trading currencies via the forex markets, you can use this to your advantage to make substantial profits, particularly if you use a margin calculator.

Disadvantages of Margin Trading

The best advantage of trading on margin is also its largest disadvantage because large margins can lead to great losses, as well as great profits. 

If you make a loss, a very small change in pips can lead to massive losses in your own money because the margin conversion is usually high – this is what allows you to turn a couple of thousand dollars into a couple of hundred thousand dollars. 

Therefore, when you’re considering trading on margin, you should be wary of all the disadvantages before you take the plunge – you could lose large as well as win big.

Ultimately, margin trading presents an exciting, though the risky strategy of investing, so look at all the options before you open a position.