Currently, the credit facility offered by banks for business capital is not only intended for companies, but also individuals. This would be very useful for us who are starting entrepreneurship, and want to develop into larger businesses. It is time we take the bank’s capital as an alternative, because in addition to the process is not complicated, the interest rates were quite competitive. Read the rest of this entry »
After we saw the good side of that debt is good debt and debt is a powerful tool then:
Get close to the debt.
Try to see rich people, whether they are hard workers? whether discipline in managing their finances? the answer is “sure”. But if you asked the question “Where is the origin of their wealth? Do they owe? her answers could be diverse.
However, it is common that many people can be rich because of debt, then why do they seem to enjoy it like he does not have a burden, while we are here not to play troublesome when the number of their debt greater than we are.
The key is: to manage the debt in order to bring an added value
Consider the following cases:
Mr. Amir can spare the money for 1 million per month, he borrowed to the bank for 80 million over 7 years in installments of 1 million 200 thousand per month. Money loan by Mr. Amir used to buy a new house for 50 million, then he bought a motorcycle for 15 million. The rest is used to increase capital by 15 million shop, flat shop profit - average 150 per month. How much debt that Mr. Amir had a positive value? The answer is only 15 million it …. You could then count yourself with the rest of the money per month for 1 million and additional injection of funds stalls which only 15 million, about - about how long Mr. Amir strong bank payment?.
Just compare with ejen indeed in the same pattern except that he did not buy a motorcycle, indeed stall with ejen injected fresh capital of 30 million. Can be confirmed by the money does ejen shop has become a shop and a must for a lot of merchandise that can be sold then the presumption will be bigger and faster profits generated. With so did ejen will feel relief in the payment because its profits from the store 2-fold or more from Mr Amir. Even maneuver can also be a repayment of debt faster and able to buy a motorcycle.
The latter is: Debt should be paid.
This is what has been a complicated issue, at the time of its borrowing is not playing well but the obligation to pay installments turn felt very heavy.
Here is talking about a commitment between the debtor and creditors, should not you trifle - waste of your trust banks, keep that trust by paying obligations on time.
Hopefully this paper can provide a new picture of the debt.
collected from various sources
Many economists say that the financial crisis currently sweeping the U.S. economy and spread to the whole world is caused by a low interest rate policy (one percent) is too long in America in the period 2003-2004. Interest rates are too low often spoil the bankers so they drop off, giving credit to the debtor or the actual project was not feasible. That is, the debtor or the project will not actually be able to pay the bank loan if mortgage interest rates increased.
Indonesia’s banks in the period 2007 until the semester I/2008 experiencing an exciting performance. At semester I/2008, with interest rates in the BI Rate is only 8 per cent and deposit the funds rate below the Bank Rate, the amount of credit as of August 2008 showed growth of 33 percent compared to August 2007. Number of problem loans has also continued to show a decrease in semester I/2008. On the one hand, this shows a positive thing, namely to increase investment activity and consumption society and spur national economic growth to 6.3 percent in semester I/2008.
However, on the other hand that high credit growth have contributed to import growth overtaking export growth. This means that there are symptoms of overheating in the economy in Indonesia semester I/2008. The increase in prices of agricultural commodities plus mining and fuel price increases are the main factors causing inflation in the year 2008. However, growth in aggregate demand beyond the supply-side growth contributed to high inflation this year, the estimated 11,5-12,5 percent.
By eliminating the symptoms of overheating the economy, Bank Indonesia tightened monetary policy in 2008. Differences in quarter monetary tightening with a quarter II/2008 is III/2008 BI rate increase since the beginning of the quarter III/2008 accompanied by absorption of excess liquidity in the interbank money market. Earlier, overnight interest rate (overnight loans) in the interbank money markets remain under BI rate of about 300 bp (or three percent) that many banks use for overnight funds used to buy Bank Indonesia Certificates (SBI). This has added cost to Bank Indonesia because they have to pay interest on SBI for something that is not necessary. In fact, there may be before the bank provides loans to corporations with a weekly source of overnight money market funds. Of course, this is banking practices that are not careful.
Credit growth was 33 percent growth is not accompanied by a third-party funds, which grew only 15 percent. It appears that some banks argue that they must be able to capture funds from the bond market, interbank money market, or from the issuance of debt securities abroad. However, it turns out the international money markets and bond markets since the beginning of 2008 was not friendly, since international banks were hit by losses from subprime portfolio credit logjam.
With dinaikkannya overnight interest rates are slightly higher than the BI Rate, several banks have to get funds from the deposit market by raising deposit interest. The higher the loan to deposit ratio (LDR) of a bank the higher the dependence on bank deposits will be. Due to the minimum compulsory deposits (GWM) medium banks in Indonesia is currently 8-9 per cent (of total third party funds) is for banks with LDR already above 90 percent, they have to get funds to provide a deposit rates interesting. In my opinion, banks with LDR above 90 percent have a ratio that is too high. LDR above 90 percent can be tolerated only if the bank has obtained long-term funding of the debt securities markets or long-term credit.
Foreign banks are also included in the category that must capture the cost of deposit funds because they do not have many branches in Indonesia. That’s what causes sudden deposit rates several medium and small banks rose significantly in August and September to 13-14 percent, far above the Bank Rate is currently 9.25 percent.
For banks with high interest credit portfolio such as micro-credit portfolio, raising deposit interest costs do not affect much the level of profits. However, for banks with low-interest loan portfolios as mortgage (mortgage) or an increase in corporate credit cost would lower deposit interest rates fairly significant margin.
Fortunately, Bank Indonesia has been quite responsive. Shake the world financial markets last week and disbursement of liquidity by central banks and European Americans have given credence to Bank Indonesia to open the taps Indonesia liquidity to banks. If the war left interest rates, bank deposit rates of banks will go up so that interest on loans will jump from Indonesia earlier in the semester I/2008 only 11-12 percent, could be 16-18 percent. If this occurs, certain number of problem loans will increase.
The dilemma faced by Bank Indonesia is currently not possible to loosen monetary policy if inflation is still high. Foreign investors holding government securities would not like to see the Bank lowered interest rate if inflation is still high. In addition, the excessive liquidity could be used to run speculation in the foreign exchange market. Thus, banks do not rush to have hearts that last week poured BI liquidity through repo facility. Repo facility is liquidity support to the market. Drugs that permanent, banks with high LDR to reduce credit growth and net third-party funds permanent.
Let us hope that the decline in commodity prices, mining and agriculture that are currently happening will be able to reduce inflation in the month of October to December so that the BI does not need to raise rates higher BI rate again.
If you are having trouble balancing your income and expenditure because of large debts then read on and discover your options in credit card debt consolidation. Debt consolidation can be an excellent option when you find your finances getting out of control but before you go out and sign up for a debt consolidation loan there are a number of factors you must take into account.
1) Why are you looking to consolidate debt?
The basic principle of debt consolidation is that you take out a single loan and use that loan to repay all your existing credit card debts, loans and overdrafts.
This normally results in lower payments generally spread over a longer term. Before you proceed with debt consolidation you should first consider whether there is a better alternative.
2) Sell assets to clear your debt
Rather than rescheduling your debts see if there is any way you can repay some or all of your debts yourself. Sell unwanted valuables and other items.
Depending on the item you can sell to dealers, advertise in local classified ads or through Ebay. Sell unwanted books through Amazon. If your debts are very high and you own your own home consider downsizing to release equity.
3) Pay more than the minimum off your credit cards.
If you can pay more than the minimum monthly payments you should seriously consider continuing with your existing credit cards and clear the debts over the next 12 to 18 months.
While it may mean restricting your spending in other areas it will be the cheapest option long term. Of course you may still opt for debt consolidation to make managing your debt easier.
4) If you are currently only just managing to pay the minimum monthly payments on your credit cards, or your total credit card debt is increasing each month then debt consolidation may be the right choice. There are a number of options when considering debt consolidation:
5) A mortgage or re mortgage
If you own your own home the lowest interest rates are obtainable by taking out a new mortgage to pay off your existing mortgage (if any) plus enough funds to repay you other debts.
If repaying your existing mortgage will result in penalty charges consider a 2nd mortgage with your existing lender. The interest charged will probably be slightly but not significantly higher.
6) Take out a secured loan with another lender
If you have already missed or been late with any payments, and as a result your credit score is too low for your mortgagor, consider a secured loan with another lender.
Secured loans in these circumstances are more expensive and the lenders are quick to repossess your home if you miss payments. Only take this route if you are certain that you can make the repayments.
Depending upon how bad your credit history is, so long as you maintain all your payments for the following 1 to 3 years, you can replace this loan with a mortgage or re mortgage once your credit score improves. There will be penalties however if you repay a secured loan early. Ensure you read the fine print.
7) A loan secured on other assets
If you have an expensive car, boat or plane you will probably be able to obtain finance using these assets as security. The rate of interest will be higher than a loan secured on property. If you do not have property or it is fully mortgaged securing a loan on other assets may be an option.
An unsecured loan
If you do not have property or other assets an unsecured loan is often a possibility. An unsecured loan is usually over a shorter term, normally up to a maximum of 7 years but occasionally longer. As a result the monthly payments will be higher but the debt will reduce quickly.
As the lender has no security your property and assets are less at risk if you default. The lender could, however, send in the bailiffs if they obtain a court order.
Because there is no security expect to pay a higher interest rate, particularly if you have a poor credit history.
9) Don’t forget the credit card option.
If your debts are relatively low and you still have a reasonable credit history applying for another card with a 0% or low interest balance could be an alternative to a debt consolidation loan.
Go for a 0% balance transfer if you can realistically repay all or most of the debts in the 0% balance transfer period. If however, there will still be a substantial debt at the end of the balance transfer period go for a permanently low interest rate.
Be aware there may be a 2 - 3% charge on the balance transfer. To ensure you don’t slip back into debt cut up all your credit cards and close paid off accounts.
10) Check all the options before making a decision.
As you research all the options it will quickly become clear if there is one obvious solution. For many individuals there will be more that one option so it is essential check them all out before makuing a final decision. Go to a range of different lenders and mortgage or loan brokers and obtain the best package for you. Remember you have the final say and just enquiring does not commit you to any course of action.
For a great many people debt consolidation provides an ideal solution to excessive credit card debt. Sorting out debt problems takes a little time, effort and determination. Once you’ve sorted your debts you will find life more enjoyable and relaxing and, with no debt collectors calling or contacting you by post or phone, much less stressful.
What is credit score? It is a three digit number that tells creditor whether you can avail of a loan at a high or low interest rate. If your credit score is very low, there is also a possibility that your application will be disapprove. Naturally, you don’t want that to happen and this can only be achieved if you have a good credit score. Read the rest of this entry »
