Monthly Archives: May 2012

The Meaning of Debt Management

Debt is technically the amount of money owed to a company, person or association. It can be a form of services, goods or cash. Debt can be represented by secured and unsecured loans such as credit card, personal loan and car loans. Debts usually involve repayment terms and interests requirements. Normally, people who apply for loan will have to sign a form stating the intent to pay the loan back with interest in case there is a delay or untimely payment. But what happens if the debtor suffers during an economic downturn and was not able to pay the loan? Untimely payment of any loan would mean high interest rate and this would lead to multiple debts. People who have multiple debts should then seek for effective solutions to manage their multiple loans as soon as possible to avoid more charges and serious problems in the long run.

One of the effective solutions to get rid of multiple debts is debt management. More people are aware of the importance and benefits of debt management. However, not everyone is aware of its real meaning and advantages. Debt management is a strategy developed to help debtor manage their multiple debts. This method is implemented by companies who specialized on debt management services or financial consultant who have more than enough knowledge and skills on this kind of problem. Third party is the one facilitating the negotiation of interest and deferred payments with creditors. A simpler definition of debt management could be the practice or observance of spending less or practical spending. Complicated and simple definitions of debt management would all go down to its general purpose, submit payment to multiple debts which often times a result of poor spending habits. The basics of debt management include debt management plan and debt consolidation. Debt management plan is a step by step planning of how to submit repayment to outstanding debts. This can be done independently but in most cases are handled by outside agencies. Hiring professional assistance is beneficial to people who wanted to get rid of the non – stop emails, phone calls and text messages from creditors. Third parties are usually the one handling the whole negotiation process. On the other hand, debt consolidation is also recommended for people who will use this one time. This strategy means getting another loan to pay all the multiple debts a person has. With debt consolidation, the person gets to focus on one loan alone.

For all objectives and resolutions, debt management is a structured repayment set up by a designated third party. This can either be an outcome of a court order or a personal decision to get rid of multiple outstanding debts. People suffering from such problems can choose whether to submit repayment to multiple debts or opt to get a loan to settle the multiple accounts and focus on one debt. Keep in mind that any type of debt management strategy you choose should help you take in control of your expenditures and not put you further into debt.

The Cheque Cashing Industry Explained

Cheque cashing is a service widely available in the UK where a bearer of a 3rd party cheque can get instant cash with ease without going through the hassle of conventional banking. In UK, this industry is regulated by Her Majesty’s Revenue and Customs (HMRC) as a Money service business and by the Office of fair trading (OFT) when money in advance services are provided along with the cheque cashing.

Benefits of a cheque cashing service

Many wonder what benefits are offered by cheque cashers in today’s day and age where high street banks are widely available throughout the country. There are some key reasons and benefits of this service.

Many don’t like to operate a bank account of their own, or in some cases one may find it difficult to open a conventional high street bank account due to their past credit history or for not meeting some other conditions. Cheque cashing service is the only alternative for such people to get their 3rd party cheques cashed.

Access to instant cash. Even people who are already having bank accounts do use this service if they need cash instantly, as typically a high street bank will take up to 5 working days to cash a 3rd party cheque. But a cheque cashing service will provide instant cash, to meet immediate financial needs.

Availability with flexible hours. Typically cheque cashing services are open for longer hours than high street banks. So one can pop into a Cheque cashing service after a working day, and walk home with hard cash.

Some cheque cashing services offer cash in advance for certain types of cheque. This is a convenient way to access money on an emergency.

service is available for anyone needing to encash a 3rd party cheque provided that they can prove their identity as per regulations. It is widely used among sole traders, SMEs, part time workers and those who undertake small odd jobs on a regular basis.

How does it work?

The customer can walk into any of the many cheque cashers all around the country with a 3rd party cheque drawn in their favour. The cashers will validate customer identity and perform further checks that are mandated by money laundering regulations. If they are satisfied, they will offer the customer instant cash after deducting the fee from the face value of the cheque. The fee charged will vary from casher to casher and in some instance based on locations. So customer can walk out with ready cash, while the casher will bank the cheque for it to be paid by the drawer of the cheque.

Regulatory bodies

The cheque cashers have to be registered with HMRC as a money Service business and are governed by them for money Laundering Regulations. In UK British Cheque cashers association (BCCA) is the widely recognised trade association for companies providing cheque cashing and short term loan services. They represent their members in governmental and regulatory bodies here in the UK and in EU. They also act as an informal regulator of the industry through their constitution and strict code of practice.

Future of this industry

UK government had a plan to phase out cheque as a method of payment by 2018. But in summer of 2011 the Treasury committee reopen the inquiry on future of cheque in light of public concern on above move. Subsequently in July 2011 the payment council withdrew its plan for the abolition of cheques and undertook to maintain the cheque system indefinitely. So this as and industry is secured for a foreseeable future.

Technical Analysis As The Best Approach For Gold And Silver Trading

Among the forms of trading, gold and silver trading is considered to be the most risky. Huge stake involved in it, the traders who initiate in this trade have to face apprehensions at every stage. However, the number of investors to enter into this market is always huge considering the monetary gains it renders. Often perceived to be as dicey as a game of gamble, gold and silver trading heavily depends on factors like chance and luck. In spite of the huge volume of uncertainty attached with this business, many traders experience success in consistent rate.

For a successful business in gold and silver, sufficient knowledge about certain factors is required. Developing proficiency in areas of market history and the present status of the market is necessary to identify the right opportunities. The price movements which prevail in the market needs to be understood to recognise the future market trends to be seen here. A perfect avenue of garnering huge financial rewards, gold and silver trading can promise to be a thriving opportunity for all if the correct trading strategies and line of approach is adopted. The nature of this market solely relies on the demand and supply theory. Hence, technical analysis is placed as the best proven process as it facilitates in studying this theory and thereby anticipates the future direction of the market.

Dealing with financial market compels the trader to invest into the market trend at the right time. It is in regards to this fact that the implementation of an apt strategy which helps to make use of the trend before it stops is a crucial aspect. Technical analysis is the widely preferred way for dealing with gold and silver business. A powerful tool for this purpose, technical analysis charts depict the price movements through the patterns stated in them. Used for the estimation of the forthcoming market trends the patterns observed in these charts are used while transacting with gold and silver.

Gold silver technical analysis has been established as the effective means of dealing with this market. Extracting the best out of the investments made here, technical analysis acts as a solution to the dubiousness involved. Technical analysis primarily works on three conjectures which influence the ideologies it holds. The first belief held by it proclaims that features like fundamentals of the organisation, economic condition and the market study and behaviour should not be treated as separate aspects since all of them are integrated in the price of the stock. The stock price mirrors all the factors responsible for making an impact on the company.

The second principle says that price movements seen in the market is always in synchronisation with the past trend. It strongly affirms that subsequent to the completion of a trend, the following price movement moves in the same created path. The third idea concluded brings the role of history in the technical analysis charts. As per the thought enunciated, the patterns of the charts are considered to be useful even centuries later because there is always a repetition to be seen in them. The patterns depicting the price movements and market trends, the tendency seen in these areas generally repeats. The use of technical analysis undoubtedly gives confidence to the trader to invest with its complete view offered. Hence, contemplating the comprehensive insight provided by technical analysis it can be concluded that the employment of it for gold and silver trading is always a wise decision to execute.