Different Types Of Loans

Loan contracts come in various forms and terms. It will actually range from a simple promissory note between friends and family members to more complex loans such as auto, payday, mortgage, and student loans. Regardless of its type, each loan will be governed by policies and guidelines to protect clients from unfavourable practices such as excessive interest rates. Moreover, loan length as well as default terms must be clearly detailed in order to avoid any confusion or perhaps possible legal action.

In case you are in need of money for a very important item or perhaps to help make your life more manageable, it is a must that you are familiar with all the kinds of loans that may be accessible to you along the different terms you can expect.

Different Loan Types

There are different types of loans which have a certain intended use. They can vary by length of time, by when payments are due, by how interest rates are calculated, and by a number of other factors.

Mortgages – These are distributed by banks in order to allow consumers to buy homes they cannot pay for upfront. This will be tied to your home. This further means that when you fail to pay it, your property will be foreclosed. As opposed to any other loan types, this has the lowest interest rate.

Student – These are offered to college students along with their families in order to help cover the cost of higher education. Generally, there are 2 main types of student loans – those funded by the government and those by private lenders. Experts say that the first option is better since it comes with much lower interest rates and better repayment terms.

Personal – These can be used for any personal expenses. This option does not have a specific purpose. It is for this reason that many are attracted to apply for such. Terms of this loan type will greatly depend on your credit history.

Small Business – This is often granted to entrepreneurs or to aspiring businessmen to help them set up or expand their ventures. Small business loan options will greatly depend on the needs of your enterprise.

Auto or Car – This is quite similar with mortgages since it is tied to your property. They will help you afford a certain car; however, you will risk losing the car when you miss payments. Auto or vehicle loans might be offered by a bank or by the car dealership directly. Though those offered through dealership are somewhat convenient, be aware that they usually cost more.

The Federal Fair Debt Collection Practices Act: What You Should Know!

There’s a deep emotional and psychological toll that dealing with constant calls, letters, and emails from debt collectors can take. Studies have found that most people are simply too frightened to answer these calls or even read collection letters.

The reason for this is obvious: A large number of creditors tend to use scare tactics in order to collect a debt. However, you should know that you do have rights under the Federal Fair Debt Collection Practices Act.

Knowing what the terms of that Act are will arm you with the ammunition you need to speak with debt collectors from an informed and empowered stance. Here are some of the things that you should know about the Federal Fair Debt Practices Act before you pick up the phone to negotiate with a your creditors.

Defining Debt Collectors

Debt collection companies are usually hired by banks and credit card companies on a commission basis to collect certain debts. Some debt collection companies also purchase bad debts (including student loans) from financial institutions and lenders. In either case, the people that will call you to collect debt usually work on a commission basis (meaning that they are only paid when they successfully collect a full or partial debt).

As with most people that work on a commission basis, debt collectors will try almost every trick in the book to get you to agree to a debt repayment. The problem with this tactic is that there are some things a debt collector cannot say, threaten, or do to try and obtain that payment from you.

What are those things? Take a look at the following details:

Threats of violence. A debt collector can never threaten to use violence of any kind in order to obtain payment.

Excessive phone calls: this law is a bit tricky to navigate, since there is no real meaning to the term “excessive” in this case (an attorney can determine whether or not calls are in excess, but it’s hard to do on your own).

Calling your place of employment after you have explicitly noted that you cannot receive calls at work.

Calling someone in your family and discussing your debt with that person in any way. Unless the person that a collector is calling has co-signed on a loan, your debts are your business.

A creditor cannot call you before 8am or after 9pm.

The best way to get a debt collector off of your back is to speak with a qualified attorney, and allow your attorney to stop those calls for you.

How to Read a Currency Pair

Forex traders that are looking for ways to gain an edge in the financial markets will need to make sure they have mastered the basics before any real money trades are placed. So if you are looking to learn how to trade Forex, there are some key points that you should have covered before you actually get started. This can help you to limit the potential for losses and to grow the potential for gains all at the same time.

Comparative Currency Values

The first point to remember is that any time you are trading in the Forex markets, you are actually exchanging one currency for another. In the world of Forex trading, currencies do not have value by themselves — they only have a comparative value that is expressed as a Forex quote. So if we are looking at the EUR/USD, the number that is given as its value shows the number of Euros that can be used to buy the US Dollar. If we are looking at the GBP/JPY, we can see that number of British Pounds that can be used to buy one Japanese Yen.

The first currency is referred to as the base currency and the second currency in the pair is referred to as the counter currency. So if you believe that the first currency is likely to rise in value, then it is generally a good idea to take a long position (buying the currency pair). If, however, you believe that the second currency is likely to rise in value, it is generally a good idea to take a short position in the currency pair. Recent market reports from Mocaz Financial Markets Limited have shown that many Forex traders fail to understand many of these factors and yet still put money into the market through trades. This is a practice that should be avoided as much as possible because this is something that can quickly create losses that are almost totally unnecessary.

With all of this in mind, it should be remembered that some basic concepts should be understood before any real money trading activity actually takes place. Instead there are demo accounts that can be used to place virtual trades under live market positions. This can be extremely helpful in terms of the way it can help traders to learn how exactly the market operates without putting real money at risk. To some, this might seem as though it is not a necessary part of the Forex arena, but those of us that have already lost money in these ways understand its true importance and its place within a broader trading career.

Forex Brokers Should Have These 5 Things

Daily Forex market capitalization is up to $4 trillion, makes it the world’s biggest financial market. Daily price fluctuation is up to 100 to 200 pips in normal market condition, which equals to about $1,000 to $2,000. If you entered the market in the right side, you could gain a lot of money.

That is one of the reasons why Forex trading has become very popular. In line with the popularity, hundreds of Forex brokers are appearing from all over the world, you just have to choose one. Unfortunately, there are so many Forex scam cases. By reading this article, I hope you will get more information about how to choose the right broker.

1. Check the legality

In Indonesia, the government regulates Forex trading in Act Number 10 Year 2011 about Amendment to Act Number 32 Year 1997 about the Commodity Futures Trading. I believe that all countries have their own law that regulates Forex trading activity.

Every brokerage company operating in Indonesia must have permission from an agency called the Commodity Futures Trading Regulatory Agency. It is illegal to operate a Forex broker company in Indonesia without permission from this agency. United States of America has Commodity Futures Trading Commission (CFTC). United Kingdom and Australia also have their own agencies that regulate Forex trading activity in their country, called the Financial Services Authority (FSA) and Investments Commission (ASIC) respectively.

2. Check the account details

Usually, each broker sets different terms and conditions on trading accounts. Among those are:

Commission and spread – Brokers get profits from commission and spread. You should calculate commission and spread as “trading cost”. Smaller is better. Here is some illustration: Broker X takes $50/lot as commission, with 1 pip spread. Assume that 1 pip equals to $10. It means total “trading cost” at Broker X is $60/lot. On the other hand, Broker Y only takes $5/lot as commission, with 2 pips spread. It means that “trading cost” in Broker Y is only $25/lot, cheaper than Broker X.

Minimum First Deposit – Traders can open a trading account with only $500 as initial deposit. Other brokers set lower minimum first deposit requirement. You can choose any broker that fits your financial condition or investment plan.

Deposit and withdrawal process – Bank transfer should be the easiest way to make deposit and withdrawals. However, this kind of deposit/withdrawal method is only available if the broker’s location is in the same country you live in. If your broker is from abroad, you can use wire transfer which takes longer time. Watch your balance; because there would be time you need to increase you fund in order to avoid “margin call” because your trades are losing. Of course, you can avoid such situation by applying proper money management combined with risk management techniques. It is always better to prepare for unpredictable situation. Note that legit brokers usually do not allow “third-party transfer”. If you have to use third-party service, make sure that your broker acknowledges it. In general, however, avoid using third-party service in order to make deposit or withdrawal. Some brokers make it easier by using PayPal.

3. Check the currency pairs

There are major currency pairs and cross currency pairs. Among those are seven popular major currency pairs; those are EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CHF, USD/CAD, and NZD/USD. Favorite cross currency pairs are EUR/GBP, EUR/JPY, AUD/JPY and GBP/JPY.

You can also trade gold (XAU/USD), silver (XAG/USD) and crude oil contract.

4. Check the trading platform

Trading platform is your entrance to the market. You have to be able to do technical analysis using the trading platform.

The most popular trading platform is MetaTrader 4 from MetaQuotes. However, some brokers use their own trading platform, usually web-based or java-based.

5. Check for the services

A good broker should provide excellent service for its customers for 24 hours a day, 5 days a week. It will be very nice if you know that you can get help anytime you need it.

Good luck.

Every trader deserves high quality service from his broker. Most of all, every trader deserves to feel safe and comfortable, so they can do analysis and trade better.

This article provides information you should know before deciding to open a trading account. Know these 5 things, hopefully you will find excellent Broker.