Terms of the credit card companies tightening

The results of a study recently carried out by the credit institution “Sally Mae”, specializing in providing loansfor education, showed that 84% of U.S. students receiving the first higher education own at least one credit card. In partial payment for the remainder of the balance amount at the end of each month, interest accrues.

During the economic crisis, the financial students’ dependence from credit cards increases sharply. And many students spend more than they can afford. Last year more than 75% of students were ordered to pay various fines for failure to pay the full balance on credit cards. The average amount of debt in the country exceeded 3000 dollars.
Last week, President Obama signed a new law on credit cards. It applies, in particular, that young people under 21 years now, to get a credit card, must obtain the consent of one parent, ready to share responsibility for it. Otherwise, the potential borrower must provide proof of his financial independence.

In addition, from now, higher education institutions are obliged to publish all of its agreements with credit card companies. The latter denied the right to make gifts to students on campus or close to it in order to advertise its credit cards. Now credit card companies are allowed to offer their products to students only in designated areas. There is a proposition to organize training courses and advice to improve financial literacy for the freshmen.

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It was not easy to make the U.S. credit card for foreign students in the past. Many universities advise to those who come to study from abroad, to get a credit card at home before entering the U.S.. For information on this subject can be in the department on work with foreign students, that exists at each university. And some universities, for example, University of Pennsylvania, already have experience of working with local banks and help foreign students to obtain credit and debit cards

Surely you’ve heard the expression - “money like water.” This implies that they are running out all the time. You do not like this situation, but you do not know how to influence it? Let’s get together.

In fact, the comparison of money with the water is very appropriate - the money is constantly in motion, they “flow”.
We have sources of money (income) and there are expenses. We cannot spend more money than comes to us from our sources (including credit). And if we find ourselves in a situation where we are obliged to pay more than we have, it is called “bankruptcy”.
It is believed that the fear of bankruptcy is one of six “primitive” subconscious fear of a man. Perhaps, therefore, people consciously or unconsciously try to reduce costs through savings, by spending less money than they receives, and thus create a “stability margin”.
If revenues exceed expenditures, we have generated a surplus of funds. There are several strategies to use this surplus. Let’s examine each of them.
The amount for a «black day”
If a person has some extra money, he puts some fixed amount «for a black day.” The remaining money is spent as income.
In an emergency (that «black day”), the reserve is mobilized to eliminate the gaps, and then, at the first opportunity is created again.
Saves money
Unlike the previous strategy, deferred amount periodically replenished. Options for storage of money are different: under the pillow, in a sock, in a bank.
The last method of storage is a “transition” to the following strategy - investing. But it is not investing because percent that bank gives is rarely covers inflation and rising prices.
Investing.
Investment -is the creation of additional sources of income in the future, the capacity of these sources tends to increase with time. The habit of investing regularly - one of the surest ways to gain financial independence.
In confirmation of this can cause the results of calculation. Investing for $ 300 a month under 20% per annum for 20 years, you build up equity in the 1 000 000 $. If you do not believe it - take a calculator and count them.
Summarize:
The most effective (in terms of financial results) of the three considered strategies is investing. There are three key aspects - the regularity of investments, long-termness and interest capitalization.

When an enterpreneur wants to start new business he goes to bank and takes a loan. So, he receives a sum of money which he is to pay off during a certain period of time according to the set interest rate. Sometimes, the business turns out to be a failure and the company goes bust, but the debt should be repaid in agreed terms. There are many other circumstances when debtors can break the agreement with a bank or other financial institution because they lack a means of payment. When they are behind in paying their bills,debt collectors can use a number of tactics in order to make those, that owe the debt, return it to the creditor.

There are some different tactics, which can be used by creditors:
1. Payment history of each client. Time from time send the customer a statement requesting to confirm their payments with checks.
2. Collection agency. Of course you will have to pay this organization if you turn to its help in collecting debts. The creditor can forward the debt to this agency and then pay a percentage of the sum, which has been collected. Otherwise the right to collect the debt can be sold to the collection agency.
3. Wage garnishment. With the help of a court law you can return some of your money from debtor’s funds, which will be subtracted from his salary. The debtor becomes aware of this fact at the court hearing.
4. Foreclosure. A bank takes back possession in a form of debtor’s property, if the debtor doesn’t pay mortgages.

In any case the creditor should try to take into account the situation of the customer before taking serious measures. Even those, who have never been in the list of punished clients, may suffer some financial difficulties or just miss the day of payment. No one knows when he gets into trouble, credits can be risky not only for customers, but for banks to which they are owed as well.

Christian debt consolidation companies follow biblical principles to make people debt free. They create a win-win situation for both you and your creditors. On one hand, you can start living without disturbing telephone calls, financial stress and the burden of paying off your debt for a long time. On the other hand, your creditors can save money by getting rid of collection costs. They feel that receiving something is better than nothing because if you file bankruptcy, they would suffer a total loss.

Christian debt consolidation companies negotiate with your creditors and try to reduce your interest rates. When they’re successful in doing it, you can pay off your outstanding balances easily through affordable monthly payments.

How Christian debt consolidation works

When you enroll for the services of a Christian debt consolidation company, an experienced debt counselor would evaluate your debts, payment history and your budget. Negotiations are carried out to lower your interest rates. Majority of creditors would be willing to lower the interest rate to as low as 6%-9%. A payment plan is set up in agreement with your creditors, which suits your budget. As per this plan, you just need to make a single monthly payment to the Christian consolidation company. They would subsequently distribute this payment among your creditors. When you make timely payments according to your payment plan, it reflects positively on your credit report.

Benefits offered by Christian debt consolidation companies

Christian debt consolidation companies offer the following benefits to consumers:

* A single monthly payment that is suitable for your budget
* No need to go for bankruptcy
* No hidden costs
* Your account is brought to current status
* Faster debt payoff
* No creditor harassment
* Significant reduction to your interest rates
* Elimination of late fees and over-the-limit fees
* Individualized and quick professional services
* You can enroll despite having poor credit

Everybody can gain from Christian debt consolidation services since they help people steer clear of bankruptcy and improve their credit score.

The world economy crisis will finish in 1,5-2 years. The world economy will have been in recession by that time.

The direct disadvantage of the economy crisis in the USA and other countries is the deficit of the loan means and therefore high credit rates. At the zenith of the economy crisis the interest rates of different counties can reach 7-10% of the annual income: in September LIBOR rate was 5-6,8% of the annual income.

One of the main consequences of the world economy is the disappearance of the hugest investment banks. Classic investing bank does capital formation of the investors to the companies, municipalities and governments. But gradually they began to earn not only by intermediary but by their own investment. By the economy crisis time the correlation Debt/Equity of the banks was 30/1. It leaded to bankruptcy of many banks.

So, what are the consequences of the world economy crisis?

1 Banks demands toughening to private and corporate borrowers; the turn of the small and average companies to the encash accounts while dealing; the refuse of the majority of the commercial banks from free credit cards and loyalty programs and bank products discounts.

2 Foreign banks and developing countries business companies crediting quantity lowering

3 The growth of the credit rates all over the world: up to 10% in developed countries, in the developing ones up to 20% and higher.

4 Home consumption growth slowdown in the United States and Europe. As the result – global commercial production and gross domestic product growth slowdown.

5 Investors refuse from high risk investments, the lowering of the investments to the fond markets of the developing countries because of the high riskiness.

6 The appearance of the world fond centers in China and the south-eastern countries.

7 The dollar weakening for 2-3 years.

Prognosis
According to the International currency fond prognosis the growth of the global gross domestic product will slow from 5% to 3% in the year 2009. Inflation will also slow to 2% in the developed countries, 7,8% in the developing ones in the year 2009.