Chasov Blog - Your World Insight

How to Deal With Debt Collectors

2009-09-09T09:40:00.001-07:00

Receiving intimidating letters from debt collectors and having them ring your phone off the hook day in and day out can frazzle anyone's nerves. But dealing with debt collectors is easier than you think because you have various forms of protection and many techniques available at your disposal.

Fortunately for the consumer the Fair Debt Collection Practices Act sets some guidelines for what debt collectors may or may not legally do when attempting to collect a debt. For example, they can't call before 8 a.m. or after 9 p.m., or threaten to garnish wages in states in which it's illegal. They also cannot harass you with continual phone calls if you tell them to stop.

[For the full text, see: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#801]

You have several options when dealing with the debt collectors. For one you can simply refuse to take the call. Most answering machines allow screening your call before picking up and if you have caller ID/call blocking you may be able to filter the call out entirely.

If you do choose to pick up insist that they don’t contact you anymore. If you sent them a ‘cease and desist’ letter they will be legally obligated to stop calling. Of course, legal action of that kind can be expensive, so you may want to employ other techniques first.

Before trying any techniques on the debt collectors, you should consider actually paying the debt, if you can and if you actually owe it. After all you took out that debt, and the creditor is entitled to be paid. However, if you are seriously short of funds, you can couple this with negotiating for a reduced rate.

All you will have to do is follow up on your commitment and the phone calls will stop. Bill collectors, as unpleasant as they might be, are just performing a service for which they get paid. Once an agreement is in place, they will happily move on to others.

If you do make any agreements with the bill collectors make sure you get that in writing from them or at least record them over the phone. Read or listen to the agreement carefully and make sure everything is stated as you have agreed over the phone.

Note, if you've insisted that the debt collection agency stop calling you, especially if you've been called at work, you can tape the call if that's legal in your state. (Sometimes it requires notifying the other party that you are doing so.) If the debt collectors know they’re being recorded they will not make any statements that are out of line. Everything you record can be especially important when you have negotiated a reduction in debt and need to prove that the debt collectors agreed to your terms.

Majority of debt collectors have the authority to accept substantially less than they're asking for. But, since they get paid a percentage of what they collect, they're going to try to keep the amount as close to the original as possible. However, they will accept less if you continue on pressuring them. They know that 50% of $500 is better than 100% of nothing.

In making any agreement the debt collectors should agree not to put any black marks (beyond what may already be there) onto your credit report. You should take that one step further and insist they report quickly any payments you do make and to adjust any amount owed.

Get it in writing before you send anything more than a token of good faith payment. Sending some money to demonstrate the sincerity of your commitment to the agreement might be ok, but sending too much can have the bill collectors break the agreement. If they see that you can easily be manipulated this will give them little incentive to make the effort to comply with the binding terms of the agreement you both established.

In order to effectively negotiate with the credit collection agency maintain your calm, patience and realism when discussing all the terms. Doing so will make an inherently unpleasant situation less stressful and help you deal with your debt problems much easier.

Increase Your Chances of Business Success by Developing a Niche Marketing Strategy

2009-06-18T22:15:00.000-07:00

Developing a niche marketing strategy may sound foreign to some business owners. This is probably because we tend to think the more people we can reach with our product, the higher the chances we have to sell our product or services. Now while this may sound good, it actually defeats your marketing efforts and can result in lost money.

To help you better understand how you can increase your chances of business success by developing a niche marketing strategy, let me explain the concept further. Let’s use the example of expensive skin care products.

You may think that marketing your product to every single woman is going to help sell more products. This in fact is in correct. You’ll spend many hours and lots of money marketing to an enormous group of people who don’t have the kind of money necessary to purchase your skin care products. Wouldn’t that time and money be better spent on those who CAN afford it?

When you spend less hours and time marketing to women in the corporate world or in the professional world (to give you a few examples) who have the money to spend on your skin care product, you’re chances of selling to them increase dramatically.

This is what is known as niche marketing. You find your little niche and focus your marketing efforts on that group of people. As you can see in the above example, your chances of business success increase dramatically by developing a niche marketing strategy to reach the people who want and need your product. Not to mention, if you can spend less time and make more money it’s bound to be positive, right?

The key to developing a niche marketing strategy is to find the people who have the money to buy your product, need your product and are willing to buy it. You may have to do a little research at first in order to find these people, but once you do, you’ll be able to market directly to them, increasing your chances of increased profits.

Now, you might be asking yourself “That’s great but what if my product will work for a larger audience? Why limit myself?”

You may be right. Your product may be something you can offer various groups (niches) of people. If so, that’s wonderful, but I still suggest you focus on the niche that has the highest probability of purchasing from you first. Here’s why.

Once you’ve made some money using your niche marketing strategy, then you can begin marketing to a larger group of people followed by an even larger group. After a while, you might find yourself marketing to the entire country and then the world, but now you can do it on a budget you can afford without sacrificing all of your time and money.

So, next time you think that niche marketing isn’t going to help lead you down the path to business success, think again. Just like anything else, start small and work your way up for the best results. You’ll be glad you did in the end.

Debt Consolidation Scams

2009-04-03T09:42:00.000-07:00

Debt is a very real problem today and people are looking for answers to their problem. In answer to that outcry, debt consolidation companies have made it their business to swoop in and help their fellow man. Sometimes they swoop in like vultures. Before you look into debt consolidation make sure the company you find is not a scam artist.

Since independent debt consolidation agencies became mainstreamed, the business has attracted many scam artists. Whenever something good comes along there is always a downside. Crooks have found a way to turn your desperation into big bucks.

First, know that every letter or advertisement that claims to want to help you does not. Ask a few questions of these people before you decide to do business with them.

Let us imagine for a moment that there is a man who has a measurable debt. He wants to get out from under so he seeks help from one of the debt consolidation companies that calls his house. They tell him that they can get his debt settled for a fraction of what he actually owes.

The man decides to work with them and enrolls in the debt consolidation program. According to the company, his creditors agreed to one-third of the price paid over a six month span. The man makes his payments starting with a lump sum at the beginning.

He thinks everything is fine until he starts getting calls from the credit card companies. They want their money. The man is confused because he’s been making payments to this agency. When he calls the toll-free number for the agency all he gets is an answering machine.

Don’t let this be you. If you need help and are serious about working to lower and eliminate your debt ask these questions:

1. Tell me about your company and what you can do to help? Any company representative that is not willing to give you thorough information about what they do is a glaring red flag. Any company that wants to do honest business shouldn’t mind telling you what you want to know. Also, if they imply that they can get information removed from your credit report, slam the door. It’s a lie.

2. How much are your services? There will be a charge but not a substantial one. The initial consultation is usually free or a low fee. Beware of hidden fees for processing and other things that can be tacked on.

3. What are your options for handling debt? Any company that only pushes debt management programs in lieu of credit counseling or payment plans could be up to something. Maybe they are getting money to push that program. You don’t want that.

Don’t believe the hype. Check with the Better Business Bureau to see if that particular company has been investigated. Also, anyone that guarantees a debt reduction or help with your credit report is out for your money and should be avoided like the plague.

The Buy Now, Pay Later Trap

2009-02-21T13:43:00.000-08:00

Don’t you love those commercials that advertise no payments for two years on purchases made today? They sound like a good deal, but beware. You could be setting yourself up for trouble down the road.

No one wants to window shop forever. You see something that you wish you had and there’s a sign hanging saying no payments until 2009. What could be better? You sit down and sign a contract. Two years later you find out that the price you thought you were paying has in fact doubled.

During the time that you are enjoying your purchase payment free, the interest is accruing on the items. Depending on the cost of the item (most likely a furniture or appliance purchase) this could add up to a lot of money. Some contracts specify that it has to be a purchase over a certain amount in order to qualify for the special offer and that amount isn’t normally cheap.

Did you read the contract? The interest rate that is accruing can be phenomenal. Think about a 23% interest rate on your purchase accruing monthly. That’s not so great a deal after all, is it?

Consumers that do not read the fine print can find themselves in a bind. They think that after two years they start making payments and all is well. For one thing, most people don’t try to put aside some money for the payment each month. The payment is forgotten until the first bill arrives.

The first bill can be a shocker. There is the high interest rate and the amount of the accrued interest added to the bill. Did I forget to tell you? More often than not, if the purchaser does not make a payment in full when the two years are up, the interest is tacked on to the purchase price. Surprise! You now have a bill that is substantially more than it was in the beginning.

When used wisely, buying now and paying later can work. People, who are trying to build credit, can start by purchasing items like furniture or appliances and paying on time. You will still need to make a lump payment to avoid paying the interest. Better still is forgoing the special deal and making payments each month from the beginning. In two years, the furniture will be paid off and you will have established a good payment record to boost your credit.

Making a Budget

2009-02-21T13:22:00.000-08:00

When the new fiscal year is close at hand, companies and other organizations work on their budget for the coming year. They give themselves plenty of time to get it done, reviewed, edited, and ready for final approval by the board. You may not represent a major corporation, but you do represent your family. It could be a family of one or a family of five. Either way, a budget would let everyone know where the money is actually going and make it easier to plan for future expenses.

Creating a budget is a time-consuming task. It you’ve never done one before you are in for a real treat. To make the job a little less painful, enlist the aid of the entire family. The good thing about a budget is that once all of the initial details are hammered out, it will never be as difficult again.

Start with where your money is going right now. You have to start somewhere and the best place to begin is to find out exactly where your money goes each month.

Make a list of the bills that are paid every month. If they are bills where the amount doesn’t change from month to month, this part of creating a budget will be fairly simple. The main bills for most families include: rent/mortgage, utilities, car insurance, car payment, and groceries. There are incidentals like credit card payments. If the payment is made each month, include these payments in your budget as well.

The grocery bill will have the most variability. Most families buy many of the same things each month but at certain times of the year, such as during holidays, many households tend to purchase more food more often. If you know what you spend on groceries this month, multiply that amount by twelve. This is roughly what you will spend per year on groceries if the family doesn’t get any bigger during the upcoming year.

Next, subtract the monthly salaries of the money contributors in the household from the regular monthly bill amount, including the grocery bill we figured above. How much do you have left? This dollar amount should be used for savings and extras.

Savings are important to include in a family budget. Each month you will want to put aside some money in a separate account. In a perfect world, having a savings amount equal to three times your salary would be ideal, but most people don’t have the luxury of saving that much. When determining how much to put into savings each month, be sure to take into consideration things such as the amount you have available and remember - life happens quite often. If you can’t put away as much as you’d like to each month, that’s ok. Just make sure you are growing your savings, even if only by a little bit each and every month in order to help when those unexpected expenses come up.

Software like Quicken or Microsoft Money can help those with computers to create a workable budget. The software allows you to add dollar amounts to different categories. Subcategory headings can also be used. As money is subtracted, you can check to see how much is left in that category for the month. These programs also allow the user to create reports that show how money is spent.

In the age of ATM’s, it is easy to spend without thinking. Remember to keep all receipts and subtract the amounts from your electronic or paper ledger. Money machines are a major source of missing cash that ruins a budget. Visit the ATM once a week and take out the money that will be needed for any budgeted expenses only. This way, you can keep account of what is spent without spending foolishly and regretting it later.

Though not always easy to start, budgets are a necessary part of maintaining the family finances. So, take the time to create a family budget for your household today in order to find out where your money is actually going. This will help to plug any leaks in your spending and save some of your hard earned green too.

Is Direct Sales’ Leadership For You?

2009-02-19T21:41:00.000-08:00

If you are reading this, chances are you are not a natural born leader. Most natural born leaders know they are leaders and have what it takes and don’t need to read an article on leadership, and probably won’t. It’s already in their personality.

So, if you’re not a natural born leader how do you know if you have what it takes to be a good leader? Leadership can be taught. Trust me. I’m not a natural born leader, I’ve had to learn what it means to be a leader and I’ve had to grow in some areas so that those things are natural for me now. If I can do it, so can you.

I’m going to show you some of the things I’ve done to increase my leadership ability. These things do take time, effort and even some money. I believe there is no better investment than helping others. When you are in a leadership position that is what you should be doing, helping others. If you are going into leadership for any other reason, say for the glory, credit or recognition, then you are going in for the wrong reason. In addition, you probably won’t be a leader very long if you are in it only for yourself.

The first thing you should do is examine yourself. Ask yourself some questions like:

• What areas am I strong in? Am I naturally social or am I more reserved and shy? If you are naturally social, then you won’t have a problem talking to people. However if you are naturally shy, then you will need to work on this. I recommend you take some classes or read some books on growing your self confidence.

• Am I organized and do I know how to prioritize my time? If you aren’t a naturally organized person, practice being organized. How do you do that? Watch some TV shows on organization or get some DVD’s that teach you how to organize. You can learn to be organized. If you’re horrible at prioritizing your time, you can learn that too. Take some time management classes or have your up line teach you!

• Am I an available leader? Will I make time for my clients and recruits? Or do I get annoyed if they call at an unscheduled time with an urgent matter or emergency? Your recruit might be in the middle of a class and need an answer to a question right away that may make or break a sale. How will you handle that? You will need patience and understanding. Yes, you can learn to be patient, but you have to practice patience to learn it.

• How’s my attitude? Am I haughty or do I have a better than thou attitude? Or do I know that I make mistakes and so does everyone else? Do I quickly learn from my mistakes or do I let them get me down? If you allow your mistakes or the mistakes of others for that matter, bring you down and you have a defeatist attitude all the time, you won’t be a successful leader. There will always be someone somewhere that is going to point out your mistakes. It’s best to get over it, learn from it and move on. Don’t let a mistake stop you from reaching your goals.

Good leadership takes patience, strength, perseverance and a good attitude. When you have all of those traits combined you have what it takes to be a good leader. These tips, coupled with the reading of books on leadership and/or attending a leadership conference or workshop, you too can learn to be a good leader.

Identity Theft and the Economy

2009-02-19T21:22:00.000-08:00

The economy is in an economic downturn. When that happens, it brings about other consequences in our society. For one, crime increases. Protect yourself from identity thieves who want to separate you from your money.

On average, identity thieves use high tech methods to find ways of defrauding innocent people. They come up with telephone scams, Internet website scams, email scams and other ingenious plans like taking photos of your card with a cell phone camera. When times are hard, these same thieves could resort to less sophisticated ways of stealing.

Consumers have gotten smarter in order to outsmart identity thieves. You read articles and booklets on how to protect yourself from these criminals. That includes shredding mail, being careful when shopping online, paying bills online and getting an annual credit report. Using reputable identity protection programs also helps you stay safe from the prying eyes of others.

You should be in the clear now, right? Think again. When people are faced with losing their homes and the ability to provide for their families, all sorts of ideas fill their heads. It isn’t just the chic criminal you need to watch out for but the desperate identity thief as well. Who are they? They could be anyone: your next door neighbor, a relative down on his or her luck, a coworker or someone you wouldn’t even suspect like a professional doctor or lawyer. And, the regular purse snatcher or carjacker falls into this category as well. A poor economy brings out the violent thief as well.

It sounds like a scene from The X-Files but “trust no one.” You can protect your identity by being street smart and savvy in your dealings with other people. Resist the urge to order items over the telephone at work or in a public area. You might think you are whispering but someone is hearing you.

Still follow the same precautions that you did when identity thieves swiped purses and wallets to get their information:

1. Don’t leave your purse in the car or your mail on the seat in full view. Lock your car doors even in your own driveway.

2. Use ATM machines at banks and during the day. At night, thieves can assault you for your card, money and your car.

3. Be aware of your surroundings. It is harder for a thief to sneak up on you if you are looking them right in the eye.

4. Don’t give out any personal or financial information over the telephone for any reason.

Identity thieves are still active in these tough economic times and they are returning to some tried and true methods to get your information. Protect yourself in every way so you don’t become a victim.

How to Build Your Business with Twitter Hashtags

2009-02-05T22:08:00.000-08:00

If you have been on Twitter for any length of time, you have noticed people often use a # symbol at the end of their messages. This is known as a hashtag. Hashtags are commonly used as a symbol to send out messages pertaining to a certain event. These symbols were actually made popular during the San Diego fires in 2007 as a way to group news messages.

Today, just about any subject you can think of uses hashtags in order to follow a particular stream of tweeted data. They are used for promotions and contests, as well as groups of people communicating together. One common hashtag seen on Twitter is #gno, which is Girls Night Out. This group is growing every week and you can join in the fun simply by searching Twitter for #gno.

Your business can also utilize this nifty symbol in order to announce new products or projects, keep customers informed of current events going on throughout your company. You can even build your business by providing clients with a useful way to keep track of you and your brand.

By grouping messages together and providing a common thread to search upon, you and your customers will be able to track any announcements put out by your business on Twitter with ease. Hashtags also force you to keep certain key words (such as #SEO or other searchable keywords) your business might be working to develop as optimized search terms in your text. Since all Twitter messages can be indexed by Google, the use of these key words will also help your business in developing their search engine rankings.

Here are a few things to remember when creating hashtags for Twitter.

Availability – Check places like www.hashtags.org to see if the hashtag you want is already in use. If your tem is available, make sure you are following @hashtags and just input the hashtag you wish to use preceded by the # mark, of course.

Relevancy – Make sure your hashtag is relevant to what you are trying to track. For instance, do not use #newyork if you are trying to sell watches in the New York area. Use something a little more specific to your business such as #FossilNY.

Memorable – Keep your hashtags memorable so customers can find them easily. Large acronyms and heavy abbreviations detract from keyword usage and they are difficult to remember. Remember, the longer your hashtag, the fewer characters you will have to use in your actual text. Keep it short, simple and to the point.

Branding – Use your hashtags to help develop a business brand. By using your tags to enhance your search engine optimization terms, your brand will be more visible to customers searching for what you offer. Remember to keep your hashtag in line with your business and business goals.

As you can see, hashtags are a great way to help build your business. Give them a shot and let your customers know you are using them too. The easiest hashtag to use is your business name. If you tell your customers to search for your hashtag they are guaranteed to have the most up-to-date information about what is going on with your business. Happy hashtagging!

Exercising at Home: Using your Body Weight

2009-01-22T19:45:00.000-08:00

When do most people join a gym? It’s during the beginning of the year. If you are trying to begin the year with a healthy exercise regimen and save money on membership fees, consider a homemade workout where you are the only piece of equipment.

Advertisers sure know their job. They could sell ice cubes to Eskimos if they had a mind to. Instead, they spend their time selling us on the latest exercise equipment. Two hundred dollars later, you have no room in your house for whatever you bought and you are still no closer to starting your exercise program.

Whether you are busy or just out of other options for a workout, try creating your own workout that requires nothing other than yourself. It is not as hard as it sounds to do. Each muscle group can become strong and toned with consistent exercise sessions.

Suggestions for Exercises

1. Pushups – No one likes these but they are quite effective. Pushups work the triceps, chest, and abs. Begin with your knees on the floor until your arms gets strong enough to perform pushups on your toes.

2. Crunches – Crunches are more effective than sit ups because they reduce strain on the neck and lower back. Simply push your lower back into the floor and curl up about 45 degrees. Crunches can be done with a twist towards the outside of the body to work the oblique muscles. Holding the upper body stationary and lifting the hips works the lower abdominal area.

3. Walking – It’s one of the best exercises for people of all fitness levels. You can take brisk walk through your neighborhood for 30 to 60 minutes most days of the week for a great cardiovascular workout.

4. Jumping jacks – Everyone used to do jumping jacks in gym class as a kid. Performing jumping jacks for even five or ten minutes at a time is an intense cardio workout. Exercise is cumulative—even shorter workouts throughout the day add up. Try doing jumping jacks during commercials for a quick pick me up.

5. Jumping rope – When it’s raining out and you can’t go for a walk, try jumping rope indoors. Jumping rope will get that heart rate up fast and keep it there. Alternate jumping rope with other weight exercises for an interval workout.

6. Lunges and squats – Both of these moves work the lower body muscle groups. For thinner thighs and a toned butt, perform these exercises every other day, twice a week.

Any exercise that uses your own body weight will build muscle. As you lose weight, you may have to add hand weights to get the same intensity but that’s okay. Remember to warm up and cool down before and after your workout, respectively. Vary your exercise routine with cardio and weight-bearing elements.

Do You Have What it Takes to be a Good Direct Sales Team Leader?

2009-01-14T22:16:00.000-08:00

You’ve proven you’ve got what it takes to make sells and run a successful direct sales business. Your next step is to recruit your first person. You’re excited and realize that once you get someone on your team, you can continually grow your business and stop working quite so hard – or can you?

Once you become a team leader, you’ll need to share your efforts on some different areas of the business. You still need to work your own business, but now you are responsible for others as well. What can you do to be successful as a team leader? Here are some tips and suggestions that will go a long way in making you a team leader anyone would be proud to work under.

• Put others first. Any good team leader will realize it’s no longer only about themselves and their business. They will put the needs of their down line above their own. Success will happen for your recruits, which in turn means you too.

• Learn to prioritize. You must be able to put things in order of importance as a team leader. By doing this you will be better organized and show your team members how to do the same.

• Walk the walk. As a leader you must lead by example. You can’t tell your team to do something and expect them to follow you if you’re not doing it too. So, go ahead and talk the talk, but only if you can walk the walk too.

• Overcoming obstacles. You know how to work past any objection in this business. You know your product or service well enough to know what possible reasons people have for not wanting to purchase and have answers available to prevail over them.

• Perseverance – You know that you’ll receive a lot of no responses in this business, but you stay positive and also know you will get the answer your looking for. You stick with it when things are slow an don’t let rejection get you down.

• Creates a working system. You are organized and have a system that gets results. You also realize that organization is different for everyone, but you know yours and are willing to help your team find their perfect system too.

• You motivate, encourage and lift up your team. You have to be A good leader is the cheerleader for the team. The leader is the motivator, the optimistic no matter what comes your way.

• Set goals. You not only have to set goals for yourself, but your team as well. Know what an achievable goal is and what is out of reach. Be able to help others reach their goals by breaking them up into manageable steps.

• Consistency is important. You must hold regular meetings and reward your team members for a job well done frequently. Your recruits want and need you to be consistent with their training. A good leader attends the Annual Conference or Seminar and encourages their team to do the same. The Annual Conference is the best place to be built up, encouraged and motivated!

• You’re not in this just to make money. Know your product, use your product and like it! You must believe in what you sell and only sign up those who do it too – they make the best sales people.

Above and beyond these tips, you can also learn to become a great leader by apply the principles it takes to do so. Watch videos, listen to CDs, read books and attend conferences that will help you become the leader you want to be. These things will make a difference in your business and your life too.

Why Saving For Retirement Is Important

2008-12-14T23:16:00.001-08:00

Whether you are 20, 30, 40, 50, or 60 years of age, are you planning for retirement? If not, you should be. Unfortunately, many individuals do not understand the importance of planning for retirement. If you are one of those individuals, please continue reading on for information that will likely change your outlook on planning and preparing for your retirement.

The greatest reason why you should save for retirement is because it is your life. The amount of money that you save for retirement will have a profound impact on how your life is lived. Do you have any dreams or goals? Typically, retirement is the best time to meet your goals and transform your dreams into reality, but you can only do so if you are financially prepared. If you are not, you may be worried about where you will live or where your next meal will come from, as opposed to wondering when the best time to take a vacation is.

Another important reason why you should start saving for retirement and early is for your children. Even if you are twenty years old and single, remember that there may come a point in your life when you have a family. Those who do not properly plan and save for retirement put a huge burden on their families. As a parent, it is your job to protect your children, not cause them to face their own financial difficulties because they must pay for your retirement expenses.

Saving for retirement can also help to ensure that you are well cared for. This is important in terms of health. There comes a point in everyone’s life when his or her health starts to worsen with age. While you may be able to live on your own and care for yourself when you first enter into retirement, there may come a point in time when you can no longer do so. If and when that time comes, are you financially prepared? Can you afford the cost of long-term care? The cost of long-term can be expensive and it should be included in the cost of your retirement; therefore, you should start saving now.

Another one of the many reasons why you will want to start saving for your retirement is because you won’t want to keep on working. Those who are unprepared for retirement often keep on working or later return to the workforce. Is this really something that you want to do? Also, remember your age and your health. It is highly unlikely that you will be ale to work until you die. That is why you should start saving for retirement, as you cannot generate income for yourself forever.

Finally, social security benefits are nice, but they will not cover all of your retirement living expenses. Many financial advisors state you will need around 70% of your current income to live comfortably in retirement. Unfortunately, most individuals only receive about 40% of that from social security benefits. Depending on how much you contributed through the payment of taxes, that amount may be lower. Since you cannot rely on social security benefits to survive, you need to start saving for retirement.

As highlighted above, there are a number of reasons why you should save for retirement. Your life is in your own hands, so start saving today.

How Web 2.0 and Social Networking Go Hand in Hand

2008-12-13T10:41:00.000-08:00

It sounds like a new type of software for the computer. Web 2.0 has become the buzz word of the moment. Even as popular as the term, there are many people who want to know exactly what Web 2.0 really is. If you’re one of them, read on to find out.

The phrase was coined by a man named Tim O'Reilly at a conference. It seemed to take off and morph into a new idea for the advancement of social networking sites on the Internet. So, Web 2.0 is actually a type of platform that supports and brings more to these social networking sites.

The idea of social networking begins with the individual model. Individuals meet other individuals and form connections. This concept would be physically demonstrated by balls and sticks like the blocks we used to play with as kids. Without the sticks to connect the balls, they wouldn’t have a connection.

Web 2.0 provides the base where these interactions occur. It also defines the way in which the interactions can occur. Individuals create profiles that can stand alone and meet new people through those profiles. Other features of the platform like news feeds, multimedia content, blogs, instant messages, social groups, audio and video, and message boards are also a huge part of Web 2.0. In this way, the connection of one individual grows and develops into an entire network of others.

There are several social networking sites that use Web 2.0 as their basis. Including some you may have heard of:

• Facebook
• YouTube
• Twitter
• LinkedIn
• Wikipedia
• MySpace
• WordPress
• Blogger
• Flickr

There are many more, but you get the idea from the partial list. If you belong to any of these social networking sites, you have sampled a Web 2.0 platform. Each site utilizes user-generated content that is ranked by the search engines. Good content is found and the content producer gains a following that can be used to gain popularity on the web or increased visibility for a business.

Web 2.0 platforms are used by businesses, universities, and families. It is a way to keep in touch with easy to use and manageable applications. One useful application is the RSS (Really Simple Syndication) feed which automatically updates subscribers when changes occur to your page. This is specific application is frequently used on blogs and news sites to save readers time. They no longer have to check their favorite websites daily for updates. Instead they receive a notice via email or in their feed reader when something new has been posted.
Companies can use Web 2.0 technology through Google Groups and Yahoo Groups. Employees can sign up and become a part of groups to receive important information about company projects or social agendas. Anyone can form a group on Google or Yahoo for business or social reasons.

Web 2.0 provides several tools for the business user and the purely personal social networker. Driving traffic to a blog, website, or other piece of information has never been more convenient than with the rise of Web 2.0 and social networking sites.

Types of Mortgages

2008-12-11T10:56:00.001-08:00

You are ready to buy a house. You have saved some money for a down payment. The next step is to find a way to finance the home that you have been dreaming about. Below is a list of several mortgage loan types to help you decide which is right for your situation.

Fixed Rate Mortgage - A fixed rate mortgage loan is one where the payment does not change during the life of the loan. Fixed rate loans tend to have a slightly higher interest rate, but the rate remains the same even if the market rate goes up. Borrowers with excellent credit often qualify for a loan of this type.

Fixed rate mortgages come in 50-, 40-, 30-, 20-, 15, and 10-year terms. Thirty-year mortgage loans are the standard, but more and more, homeowners are opting for early payoff of their home loans. Someone who wants to pay off their home loan in half the time would choose a 15-year mortgage loan.

Adjustable Rate Mortgage - This type of mortgage is abbreviated and more commonly known as “ARM”. An adjustable rate mortgage starts at one point, but can go up or down each time the interest rate adjusts. Borrowers can specify if they want to have the option of an adjustment each year, every three years, every five years, twice a year, and so forth.

The thing about this loan type is that each percentage that it goes up increases your monthly mortgage payment. For the sake of finances, a 5-year ARM guarantees your interest rate for the longest time without any changes. By the same token, if the interest rates drop within that period, you could miss out on lower payments so definitely take into consideration the market not only at the time you purchase your home, but also what it may be like years down the road.

Balloon Mortgages - You’ve heard of balloon payments? A balloon mortgage has a set interest rate just like the fixed rate mortgage loan. After that time, the rest of the loan comes due in one “balloon” payment, hence the name of the mortgage loan. Whilst not for the average mortgage loan shopper, this type of loan works for buyers that expect a short turnaround time before they sell the property.

FHA Mortgage Loans - This is a government insured loan program that helps buyers with less than perfect credit and first-time buyers to finance a new home. The amount of the loan differs depending on where you live, but the down payment for an FHA loan is as little as three percent at closing. For a family trying to afford their first home, this helps to save money for things like home furnishings and any improvements they may want to do on their new house.

VA Loan - This loan is offered to veterans of the Armed Forces. Veterans that meet the requirements can qualify for loan to finance their new home. There is no down payment on this loan in most cases.

Two-Step Mortgage - A mortgage of this type comes in two phases. The first phase consists of a fixed interest rate for a specified period of time. After the time elapses, the rate of the loan adjusts to an interest rate where it will remain for the rest of the loan period. The amount of the adjustment depends on the particulars of the individual loan.

There are also many variations of the above mentioned loans, so talk to a reputable lender for further options before deciding which is best for you. Even if your credit is not the best, you can still get a manageable loan that puts you in the home you want.

Refinancing a Home to Cover Credit Card Debt

2008-12-05T21:40:00.000-08:00

The majority of the American public has been in or is experiencing credit card debt. They have high interest credit cards that they can’t pay off. Taking out a home equity loan is an option, but one should think through doing so in advance so that the financial situation doesn’t go from bad to worse.

What about the credit card debt? This occurs when people charge more than they can pay off. Monthly payments increase when you continue to charge and run up the balance on the credit card.

A home equity loan is a quick solution to the problem but not a permanent one. The only permanent solution is debt counseling and cutting those credit cards in half. As soon as you pay off those balances with the loan money what happens? The credit card companies send more offers to get more credit cards. It’s a vicious cycle that won’t stop unless you learn to get a handle on the spending.

The amount of a home equity loan is based on the amount of money that you have paid into your home. You are building equity each year that you make payments on your house. Borrowing against this equity increases your house payment.

A home equity loan can be used for anything. Many homeowners use equity to make home improvements. Improvements can increase the value of your home so that you can get a better price when it is time to sell. They are putting the money back into their home.

Unlike home improvements, when the money is used for credit card repayment, there is nothing physical to show for it. Many times the purchases made with the credit card are more than likely gone, especially if it was food or entertainment. It may seem like all you are left with is a higher house payment. You are paying off debt, which in the long run will be a good thing, even if it doesn’t seem like you have any concrete evidence for the higher payments.

Credit card debt can also be reduced through other means. One way is to talk to the creditors. Many will work out a deal to make payments on the balance. You may have to stretch yourself thin for a few months to make lump sum payments, but at least you will still have your home and its equity, leaving that money to be used for emergency needs if such a situation presents itself.

Credit card debt can and will resurface if the underlying causes of debt are not dealt with. Home refinancing for debt payments is a stop gap measure that, if not done for the right reasons and with the discipline to avoid the same situation down the road, can leave the homeowner with a worse financial picture than before. Be sure to research all the options and choose wisely when it comes to digging out of credit card debt.

Busting 5 Myths and Bringing Home the Truth about Affiliate Marketing

2008-11-30T21:02:00.000-08:00

Affiliate marketing is a business that one can sell other people’s products and earn commissions from them. The sales are tracked through special links that are provided to the affiliate marketer which they place on their site to sell those items from.

Affiliate Marketing has gotten a bad rap in years past, so it’s time to educate aspiring business owners about the truth behind this legitimate business. Let’s bust those myths and bring forth the truth about this potential money maker!

Myth #1 - It’s just another get rich quick scheme.

Truth - This myth probably originated around the time Internet frauds and scams hit an all time high. Most people aren’t aware of what affiliate marketing is and probably heard others who’ve said they made a lot of money from it, so they assumed it fell into the scam category. The truth is that it’s a legitimate business that you could make money from, but you will not get rich quick. It takes a lot of time and work to make it a success.

Myth #2 - It’s a waste of time. No one will want the junk you would be selling anyway.

Truth - First of all, you aren’t selling junk. You pick the items yourself and research them to see whether or not they’re worth the effort. When you find good quality products and work hard selling them, you will earn some decent commissions, so the time would not be wasted. You get out of it, what you put into it.

Myth #3 - Affiliate Marketing sites sell themselves.

Truth - The only way these sites will actually sell themselves is if you work hard to provide the best possible site and use the best possible marketing methods. You will still need to bust your rump to get those results through, so technically the sites don’t sell themselves.

Myth #4 - You can make money overnight!

Truth - Most affiliate marketers would love it if this were true. But, alas, it’s not. It will take quite a bit of time to get the ball rolling for you to find what works and doesn’t work. When you finally get on your feet and know how the process works effectively, then you can start earning more money. It won’t come overnight.

That being said, once you discover how to make that money, then yes, it is possible to go to sleep one night with X amount of dollars in your PayPal account and wake up to more. That’s where making money overnight comes into play, but that doesn’t mean you just throw a link on your site one day and wake up the next with a hefty account balance.

Myths #5 - Just build a website. Your customers will find you.

Truth - This holds some truth to it, but it’s lacking some details. You will need a website to sell affiliate products from, but customers aren’t going to find you unless you market, market and market some more. Just because you publish a site on the World Wide Web, does not guarantee everyone out there is going to stumble upon your site. You need to get your site out there and let it find them!
Affiliate marketing is a legitimate business that you can make money from. It’s like any other small business. You have to work hard at making it a success. The rewards of your hard work and dedication can be great once you get your business gets up and running.

Now that the affiliate marketing myths have been busted, and the truth is out, you are well informed that affiliate marketing is not a fly by night scheme to make quick money. It’s a business like any other and should rightfully be thought of as such.

Too Revealing? Its All About Mutual Funds

2008-11-08T13:45:00.000-08:00

Funds of fund - which spread their investment dollars across other mutual funds rather than stocks or bonds - having gained a significant following in recent years. Lifestyle funds and targeted maturity funds in particular have been popping up in retirement accounts from coast to coast.

But in the name of transparency, an SEC rule that went into effect July 31, 2006, threatens to put the brakes on that growth. The new rule mandates that starting in 2008, fund companies must include in their expense ratios not only their top-line management fees, but also underlying costs of the funds in which they invest. In other words, the (fictional) Generic Fund might charge you 1.5 percent in expenses to assemble a portfolio of other funds. And that's all it would have listed in the expense ratio last year. But this year, Generic Fund will also have to break out the expense ratios of the funds in which it invests your dollars, which might bump the total up to 4 percent. Even though nothing about the fund management changed, it looks more expensive on paper.

Heavies like Fidelity Investments, T. Rowe Price and Vanguard can rig the system by investing only in their own funds and waving management fees - so their funds of funds look (and, in fact, are) cheaper than competitors' offerings. But your boutique fund's all-in-one asset allocation doesn't really cost you more than last year, despite appearances to the contrary.

So if the higher expense ration makes you squirm, you probably shouldn't have invested there in the first place.

U.S. Stocks End Sharply Down As Economy Overshadows Election

2008-11-05T23:04:00.001-08:00

U.S. stocks hastened their sharp declines, erasing the largest Election Day gains in more than two decades, as investors pondered the task ahead for President-elect Barack Obama in confronting the poor shape of the economy.

"Obama's honeymoon with the markets was a short one as stocks unwound their Election-Day relief rally... as the credit and financial mountain remains a tall one to climb," said analysts at Action Economics.

The potential for a deep U.S. recession and the worst global financial crisis since the Great Depression gives Obama little time to bask in the afterglow of his victory, economists said. .

"Yesterday's market action was in anticipation of an Obama victory -- it looks like more of a landslide -- now we're down to business and the market is going to wait until he talks about an economic plan," said Peter Cardillo, chief market economist at Avalon Partners.

Stocks quickened the pace of their losses in afternoon trade, with financial shares hammered the hardest.

The Dow Jones Industrial Average fell more than 500 points. The blue-chip index ended at 9,139.27, off 486.01 points, or 5.1%.

The blue-chip index had gained 3.3% the prior session, topping the 1.2% advance tallied in 1984 when Ronald Reagan won a second term.

On Wednesday, all of the Dow's 30 components posted late-session declines, with the losses led by Citigroup Inc., off 14%, and Bank of America Corporation, down 11.3%.

General Motors Corporation erased earlier gains, off 2.8%. The Detroit News cited an internal GM memo in reporting that the automaker would announce "important changes" to its operation when it releases third-quarter results on Friday.

The S&P 500 Index declined 52.98 points, or 5.2%, to 958.00, and the Nasdaq Composite Index shed 98.48 points, or 5.5%, to 1,681.64.

Financials, materials and consumer discretionary shares fronted the losses in the S&P's 10 industry groups.

Volume proved exceedingly light, with 1.3 billion shares traded on the New York Stock Exchange, where four stocks were on the decline for every one on the rise. On the Nasdaq, 902 million shares traded, and decliners surpassed advancing stocks, also by a roughly 10-to-3 margin.

In economic data, the ADP index of private employment showed companies shed 157,000 jobs in October, with the report seen as a preview of sorts of Friday's non-farm payrolls for the month.

The Institute for Supply Management reported non-manufacturing sectors of the U.S. economy contracted sharply in October, with its index falling to 44.4% from 50.2% in September.

The U.S. dollar posted mild gains, with the dollar index, a measure of the greenback against a trade-weighted basket of six currencies, climbing to 84.79 from 84.533 in North American trade late Tuesday.

Crude fell, with oil futures for December delivery off $5.23 to finish at $65.3 a barrel on the New York Mercantile Exchange.

Gold futures fell, snapping a two-day winning streak, down $14.9 to close at $742.40 an ounce.

Treasury prices gained, with 10-year note yields lately down 6 basis points to 3.671%.

Wednesday's earnings had Time Warner Inc. reporting a third-quarter profit slide of 1.7%, with the New York media giant cutting its estimate of full-year earnings from continuing operations. The company's shares fell 5.4%.

In developments in the technology sector, Google Inc. said it would no longer pursue a proposed advertising deal with Yahoo Inc., citing resistance from regulators and some advertisers. Yahoo confirmed the deal's demise.

Overseas, shares in London snapped a six-session winning streak.

In Asia, most markets ended higher.

Recession Looms as Market Takes A Roller Coaster Ride

2008-11-04T22:10:00.000-08:00

Day after day we see worse and worse economic data coming out from all sectors of American and global economies. Majority of companies around the world are experiencing lower earnings and announcing hundreds of thousands of layoffs further adding to the already high unemployment rate in the United States.

For those who haven't heard or haven't believed it yet, the recession is here and its in full swing.

The unemployment rate is constantly rising and currently stands at a high of 6.2%, definitely not a positive number for the economy and overall financial outlook for majority of working families in the United States.

The sobering economic data and weak earnings of many companies over the last quarter saw a major sell off in the stock market. Selling also spread throughout the rest of the world affecting all countries and major global financial indexes.

The U.K.'s third quarter gross domestic product fell 0.5%, the first decline in 16 years, putting the country straight into a recession.

U.S. stock market recently hit its lowest levels in more than five years on the belief that a punishing economic recession is at hand. Since mid September the U.S. stock market has erased more than $8.8 trillion of shareholder value, obliterating wealth for millions of Americans. The market itself has been riding a roller coaster swinging each day from highs of as much as +1000 to lows as much as -800. Each day brings unexpected news and sends the markets into a further decline even if it manages to recover in prior trading sessions. The outlook about overall economy and financial credit markets is growing more negative with each day.

Such a negative outlook makes it clear that the world economy is headed for a severe downturn even as governments race to revive credit markets on the hope that a return of more normal lending levels by banks and other financial houses will fan economic activity.

In all this economic and financial calamity the main concern is about all the lower and middle class working families not only in America but also around the world; families that have to bear most of the burden of these hard economic times. The only hope and wish that everyone can make here is for this recession not to become something more disastrous and catastrophic than it already is.

Is It A Smart Idea To Buy Templates From Joel Comm?

2008-11-04T21:52:00.000-08:00

Should you purchase Joel Comm's Adsense templates? Is it a smart idea and a good investment?

Who's Joel Comm?

Joel Comm is a guy who has made a name for himself as one of the many "make money online gurus", with a specialty on Google AdSense. In fact, here's how he describes himself on one of his own websites...

"Joel is considered to be the world's foremost expert on the subject of making money with Google AdSense. He's written the all-time best selling ebook on the topic, and his recent book The AdSense Code topped at #1 on the Amazon marketplace, and became a New York Times best seller."

Comm goes on to say that he receives big, fat paychecks from Google AdSense. Whenever anyone speaks about making AdSense fortunes Joel Comm's name always comes up and so does his reputation for being the best of the best in the online world.

He's known for selling "AdSense templates", which I have never personally purchased or seen. However after studying Joel Comm and his template selling business I will make a quick analysis about whether or not you should invest in his templates and if its a smart idea.

If Joel Comm is the undisputed king of making money from AdSense, then it stands to reason that you can visit any of his websites to see what kind of "template" he's using.

Just go to his blog: http://www.joelcomm.com

If he makes big fat paychecks from AdSense, then all you need to do is copy his blog design. You don't even really need to buy his AdSense templates.

But hey, the blog designs I make use of don't mimic his designs. So why don't I follow his design?

Well, placement of AdSense advertisements does make a big difference, but only so far as it can be seen by everyone visiting within 5-10 seconds of viewing your website. What matters after that is if the ads are readable, relevant and interesting to the people visiting your site.

Based on my analysis I could not find out or know for sure if Joel Comm is truly making five-figure checks from AdSense as he claims he does (packaged in a UPS envelope). Only himself, his bank, and the people at AdSense know for sure. But as I look at his claims of being the best at AdSense I'm confident I'm just as much an AdSense expert as he is, maybe even more. What I am not, however, is a skilled salesman nor copywriter. That's what Joel Comm is.

Let's pause for a second and face the facts, there's no way to go from making a couple of dollars a day with AdSense to thousands of dollars a day, just by changing the placement and colors of your advertisements. If Joel Comm makes five-figure AdSense checks it has more to do with his traffic volume than his knowledge of AdSense.

Anyone driving massive amounts of traffic to their website can make incredible money with AdSense even if the actual content of the website is not that great. That's the secret Joel Comm doesn't tell you about.

One thing for certain, Joel Comm has made a name for himself as an AdSense god, if anything, he's just really good at making you believe it.

So is purchasing Joel Comm's AdSense templates a smart idea and a good investment?

You make the call.

Taken for a Ride

2008-10-12T21:18:00.000-07:00

Floating a taxpayer-backed "credit-line" to a private company is simply wrong. However, there will always be those who rationalize the need for the government to provide credit assistance to business in the instance of a "market failure" or a "compelling public interest." They often cite the success of the Chrysler Loan Guarantee Act which gave the almost-bankrupt carmaker $1.2 billion in 1980.

Within three years, Chrysler was financially stable and had paid off its loan. But Professors Walter Adams and James W. Brock understand the financial and social consequences created by the Chrysler precedent: "The political economy of big business thus revolutionizes an ostensibly free enterprise society in a subtle but profoundly radical way. It privatizes profit while socializing losses--provided the latter are large enough. It thereby erodes the social role (and justification) of profit as an inducement for sound decision-making in the public interest. It is thus tantamount to socialism for the big and powerful."

In an open economy, the market decides winners and losers. DM&E wants to tap into the lucrative Powder River Basin, but the private sector weighed the risk and chose not to invest. The federal government should not be the fall-back lender for a business that can't succeed in the real world. DM&E and its appeal for a federal loan is just another case of corporate welfare aided by high-level connections in which the American taxpayer is taken for a ride.

On the Dole

2008-10-08T20:19:00.001-07:00

In August both houses of Congress voted by clear majorities to extend for another five years the so-called State Children's Health Insurance Program (S-CHIP). This program had originally granted free health insurance to the children of "poor working families"- defined as those earning up to 200% of the poverty level.

As well as extending S-CHIP's life, however, the House bill expanded the definition of poor working families to include those earning up to 400% of the poverty level. Thus, children in families where annual income is as high as $82,000 will become eligible for free health insurance. Since an estimated 77% of children living between 200% and 300% of the poverty level - and 89% of those between 300% and 400% - already have private health insurance, this extension will push them from private into state health insurance. It will, in a word "socialize" their health insurance. According to the non-partisan Government Accountability Office, 2 million Americans will go from private to state insurance - not all of them "children" as conventionally understood. The rules in 14 states allow children as old as 25 to enroll in S-CHIP. That kind of thing could give "bracket creep" a bad name

Gray Skies

2008-10-05T00:55:00.001-07:00

In 1995 when the FAA placed commuter airlines under the same rules as major ones, it allowed about 200 pilots over age 60 to keep flying. The result of this little experiment? "There were no medical events, no safety events, nothing to show the group couldn't fly about age 60," said FAA Administrator Marion Blakey. But "there's a heck of a lot of experience behind those captain stripes, and we shouldn't have to lose it as early as we do."

An obvious reason for keeping the old rule is that it's popular with younger pilots, whose career ascent can be stalled by colleagues, withe greater seniority. That helps explain why pilot unions oppose a change. The proposal to raise the mandatory retirement age to 65 could also complicate management of major airlines, because older pilots generally get higher pay. But while those considerations are important for union and management policy, they shouldn't govern public policy. Neither factor is justification for keeping an anachronistic rule that junks valuable skills and hinders flexibility in airline operations. Changes in nutrition, medicine and social customs have reshaped our perception of when old age begins and what it means.

"Free" Speech

2008-10-03T23:51:00.000-07:00

The great folly of campaign finance reform is the ill -conceived belief government can control the flow of money into elections without also substantially dictating winners and losers. Rather than purging politics of big money, these laws have muted the voice of democracy and threatened its very foundation.

The truth is that Free Speech is not free. Without money, candidates are speechless. During the 2008 presidential primary process we certainly have seen otherwise well-qualified candidates drop out for lack of money. In fact, because of the severe contribution restrictions, many contenders have never even tried.

Theoretically, presidential primaries are national debates about important public policy issues. But it takes money to participate. By elevating both personal wealth and mass fundraising prowess as the most important credentials in the presidential nomination process, the anomalies of campaign finance reform narrowed the field and silenced many contenders.

Shake, Rattle and Roll

2008-10-03T19:29:00.000-07:00

Two years ago the future of tiny technology company Immersion Corp. in San Jose, California looke murky. Chief Victor Viegas had sued both Microsoft and Sony, alleging the tech titans had infringed on Immersion's patents for "force-feedback" technology, which made the Xbox and PlayStation 2 game controllers rattle and shake in the hands for an extra dose of realism. Microsoft had settled for a one time $20 million license fee and another $6 million in preferred stock, but SOny was holding out. The air has finally cleared for Immersion. In March Sony agreed to poay $97.2 million in damages and another $22.5 million in ongoing licensing fees. Stock in Immersion, which also uses technology in surgical simulators and other eltronic interfaces, is up 18% on the news.