Are we spending ourselves into Bankruptcy?

Living in the United States - Are We Spending Ourselves into Bankruptcy?
By Nan Wood

For years the United States Government has been adding each year’s deficit into the total of the National Debt. Generally when you hear people discussing the problem, they are usually referring to the current years’ deficit. The problem is much larger than this year’s overspending.

The gap between the amount the government spends and the actual amount of taxes it receives to support this is increasing rapidly. In 2002, the United States Treasury commissioned a study on this subject. The result of the study showed a $45 trillion gap.

Since that time, there have been more tax cuts and discretionary spending has continued to increase. One large increase came in the area of Medicare which now covers prescription drugs.

Former Fed and Treasury economists Jagadeesh Gokhale and Kent Smetters now estimate the gap to be at $63 trillion. Since senior benefits tend to grow almost twice as fast as the economy, the problem will continually grow larger. Baby boomers are reaching retirement and entitlement age. This group is the largest in history to reach retirement at one time.

The unpopular answer would be to restructure benefits thereby reducing the cost for the entitlements given out in the future. Of course this is not a popular approach and it would be hard for the lawmakers to pass the necessary measures to put this into effect.

An equally unpopular way to solve the problem would be to increase taxes or cut actually discretionary spending in other ways. Since there have been no major changes in Social Security since 1983, this program just continues to expand. We will not improve the future by allowing status quo to continue.

Since markets are affected by the economic health of our nation, I am slowly reducing my investments in the market. I was one of the unfortunate people who held a fair amount of technology stock at the wrong time. I am now considering investing in Canada. The Canadians, as well as other countries, have very low fiscal gaps. I am watching to see what moves our politicians make toward closing this fiscal gap to make long term progress in reducing the debt.

Nan is an Account and Business Writer. She has an information site online for reseach on RealEstate

Keep your Focus on the Customer

Keeping Your Focus on the Customer
by Nan Wood

With so many ecommerce web sites out there and strong competition in each category, it is very important to keep your focus on the customer. Many people are so short sighted on making a profit, that they forgo the most important part of the business equation-the customer.

Most online web developers spend lots of time and money building a web site as well as attracting web visitors to their web sites. Once a visitor lands on your web page, don’t throw all that hard work away, keep your focus on the customer so that they stay longer, hopefully buy a product and become a return visitor.

Everyone has probably landed on a web site that is out to make a quick sale with no respect for the visitor. You probably encounter pop up ads, an overload of flash advertisements and a mouse trap that makes you close your browser window just to leave their web site. Most visitors would run from a web site like this, let alone purchase an item. So if you are a web designer, create a web site that accommodates your visitors, treats them fairly and has a long term philosophy to build a relationship with visitors and offers a fair product.

Your customer is your number one priority. Without visitors who become customers, you will not have a business wether it be online or off. Give good value!!

Nan is an Accountant and Business Writer. She is currently offering a Free Mortgage Calculator for her customers at
MortgageLoan

Using Customer Loyalty Programs
by Nan Wood

Most businesses don’t realize the amount of time and effort it takes to attract a prospective buyer and then make them a customer. Customers shouldn’t be shrugged off lightly. If you are building a business, it is extremely important to build customer loyalty with your products or services. Here are some tips on using customer loyalty programs.

Customer loyalty programs are simple programs that reward your past customers when they buy something from your business. Many customer loyalty programs that are popular are airline miles, coupons and freebies.

If you have a small internet or brick and mortar business, you should look into ways to attract your old customers so that they come back for more. Many people develop coupons, special offers and freebies for their products. These methods are excellent because they can be measured and analyzed to see if they work well or not.

You can also get great ideas about customer loyalty programs, just by taking a look elf at other businesses and see what they are doing to attract and keep customers. Most of the time, customer loyalty programs are much cheaper than finding fresh customers, so customer loyalty programs are an excellent idea for just about any business.

Turning a buyer into a customer is the way to go. You spend time, money and effort finding new customers. Retaining them is cost free for the most part. Try loyalty programs, give them good customer service, as what their problems are and then solve them. The ideas are unlimited.

Nan is a Real Estate Agent and Business writer with an online site for RealEstate research and information.

Credit Cards - Offers are beginning to decline

Credit Cards - The Quantity of Offers is beginning to Drop
By Nan Wood

If you are like me, you get these offers daily. My mailbox has become a haven for credit card solicitations. I’ve called my credit card providers and requested they cease sending me these offers to very little avail. Well, it seems that many of us are not taking advantage of these offers; therefore, the credit card companies are finally reducing the number of offers they mail.

Credit card solicitations have increased to more than six billion offers a year. The response rate is decreasing dramatically. Bank of America Corp and JPMorgan Chase & Co are shifting away from direct mail. They are leaning toward their banks and ATMs to cut cost and become more effective. I am sure the increasing postage rates have changed the picture for direct response mailers.

The cost of acquiring a customer via direct mail is much higher than the cost of attaining a customer using an existing branch of the bank. The banks are looking for alternative ways to entice a customer to use their services in general. The competition increases as the number of branches increases.

As the number of companies in the direct mail arena reduces, the companies remaining will become more effective. Their response rate should increase over time. I believe direct mail methods will remain popular.

Nan is an Accountant, Real Estate Professional and Business Writer. She has information sites online for research at RealEstateLady

Business Resources - Make your business Profitable

Business Resources – Make Your Business Profitable
By Nancy Woodward


One of the most important keys to make your business profitable is to find the right business resources. Business resources can encompass many things including the right labor, business tools, information, analysis and advertising. Being able to tap into the right business resources can take lots of practice and sometimes even a little luck. Her are some tips on getting the most out of your business resources.

Finding the right business resources can take time and energy, but it absolutely worthwhile when you are able to find labor, tools, information or advertising strategies that work for you and your business. Some of the easier ways to find business resources is actively search for them on the internet, small business association or other professional organizations and books & magazines. There are tons of great resources, but you will have to put aside time and filter through all the fluff to find the nuggets of great information that can truly help you and your business succeed.

If you starting out, check for business resources online. There are tons of business resources that are only a click away. There are plenty of business forums, where many entrepreneurs come together to talk about business related topics and share ideas and opinions. Many forums are worth their weight in gold and have hundreds of visitors and contributors daily. You can also check out your local small business association for get together or other professional organizations that are connected with your trade.

To catch up on topical information and to hear opinions from guru’s in the world, it is always good to read business related books and magazines. So if you are starting a business, make sure you develop your business resources. The time you spend on research before you begin, will save you time, heartache and money after you begin.

Nancy is an Accountant and Real Estate Professional. Visit RealEstateLady

Loans and Credit - Reward Programs

Loans and Credit - Credit Companies – Three types of reward programs.
By Nan Wood

Many credit card companies are offering reward and rebate programs as incentives for new customers. They are aggressively targeting new customers with rewards offers. Since studies have shown that consumers care more about a cards reward program than the interest rate that is charged, the credit limit or anything else, the card companies are focused on the free offer aspect.

The programs fall into three categories:

1. Rebate Offers - Customers receive refunds. The refund is based on a fixed percentage of the amount they spend. The offer sometimes refunds this to charitable organizations. GMAC is currently offering a rebate that applies to the customer’s mortgage.
2. Affinity Rewards Program – Customers chose a theme for their card such as reservations at a restaurant or frequent flier cards. Your rebate comes in the form of points applied to your program of choice.
3. Company rewards – Customers earn points which they use to pick rewards offered by the company. An example is using your points for airline tickets on a range of airlines they have in their program.

If you would like to find a card with a reward program you can visit bankrate.com and creditcards.com, as well as some of the large banks and financial institutions sites. Obtain credit and use it responsibly.

Nan is an Accountant and Real Estate Professional. She is a business writer with an interest and knowledge in the credit area.
Visit MortgageLoan
for online research and information.

Starting a business - Good Personal Credit is Necessary

Starting a Business: Good Personal Credit is a Necessity
by Nan Wood

If you are thinking about starting your own business, banks will look at your personal credit history if you have no business credit history. Thus, credit scores are more important than ever. While banks previously determined whether to lend to a business or not by looking at your credit, the business’s potential, any collateral you may offer, and your personal career history, this process has become extremely condensed in order to process more applications and level out the bank’s risk, so without excellent credit, you might find yourself denied a business loan.

Start by getting a tax identification number for your business, which helps separate your business credit history and your personal credit history – an important step in building your business credit and helping to launch your business. If you have bad credit, separating your business from your personal credit is crucial. You can do this by applying for a tax identification number for your business, but also by securing a business office address and phone, as well as a business bank account.

Larger and better-known financial institutions often automate their credit application processes now, and having a less than average personal credit score and no business credit history will hurt your chances of obtaining a loan. Try smaller, hometown banks, which are more likely to view you personal credit score while factoring in the potential of the business. Some lenders focus on high-risk loans for entrepreneurs. These loans often start with high interest rates, with the understanding that increased business cash flow can lower the rate. Depending on the amount of your start-up costs, you can also consider opening up a business credit line to help with initial expenses.

Another option in obtaining money is opening up a home equity loan. This may be a risky option, depending on the viability of your business. Home equity loans are loans taken out against your home. These loans can give you the start-up cash necessary to fund your business at relatively low interest rates, but depending on the strength of your business, you could lose your house if your business fails.

Once you have a tax identification number for your business, you can begin building your business’s credit history and score. You can do this by paying any business bills on time, especially your business credit cards. The national credit reporting agencies have also developed a credit report for businesses, and this will allow you to better track your business’s credit. By maintaining good personal credit, you can start off with good credit in the business world as well.

Nan is a Real Estate Agent with an information site online MortgageLoan for your research.

Real Estate Sales - Should you fix up your house?

Real Estate Sales – Should you fix up your home before listing it?
By Nan Wood

Yes, you should fix all of the obvious things you can. When buyers visit homes, they look for the things they see that obviously need some fixing. Most buyers would rather not see the repairs in front of them. They want to buy a house that is in ‘perfect’ repair.

You should put yourself in the buyer’s shoes. Think like a buyer. Would you want to repair or fix up anything in your new home? No, you would not. While you are still in the buyer’s frame of mind, tour your house. Make a list of all the things you see that need repair.

Here are eleven obvious things to look for and correction any defects:

1. Do your walls need a fresh coat of paint?
2. How about the trim?
3. Are all of your floors and carpets in good shape? Do they need cleaning?
4. Are your windows and shades okay? Are the screens in good condition?
5. Do your appliances work properly?
6. Eliminate squeaks and cracks of all kinds.
7. Is your basement clean and organized?
8. Is your roof in good condition and non-leaking?
9. Check all faucets, fixtures and knobs.
10. Make your lights as bright as you can.
11. Clean the fireplace.

The time and effort you put into this list will save you money and aggravation in the sales process. You can do these repairs yourself or hire someone else to do them for you. The money you spend doing this will come back to you in savings. Your house will show better and sell faster in tip-top shape.

Nan is an Accountant and Real Estate Professional with an information and research site online RealEstateLady

Credit Laws - You must be familiar with laws on this subject

Credit Laws You Need to Know
by Nan Wood

The Equal Credit Opportunity Act states that all lenders will apply the same credit standards to all consumers, without prohibiting by race, sex, marital status, national origin, religion, age, or public assistance program involvement. This does not guarantee the approval of a loan or credit but does insure that all consumers are given an equal chance to obtain credit. The only acceptable measurement for creditors to use is your ability to pay your debts.

Many applications will contain questions about your sex, your race, or your nationality. You are not required to answer such questions on an application for credit. These may be asked in conjunction with fair housing laws or affirmative action laws, but these are completely optional. Furthermore, you should not be asked about your marital status, unless your partner will help secure and use the loan. You may be asked your age under the Equal Credit Opportunity Act, but only to determine if you are old enough to obtain credit (usually 18 years old in the U.S.)

All creditors must notify any applicants of their decision within 30 days. If the application is denied, the creditor must provide a written statement detailing the outcome or decision along with the reason for the denial and information on the applicant’s rights. This act helps ensure that a certain standard is kept with all applications for credit – no matter who the applicant is.

The Fair Credit Reporting Act gives individuals the right to view their credit report. To disseminate this, each citizen can receive one free credit report every 12 months. The act allows individuals to receive their credit history for all three national credit reporting agencies. In reviewing his or her credit, disputes can be logged against specific items on the credit report, allowing the consumer to police the credit reporting agencies. If the correction to your credit is not up to par, you can also add a brief statement of 100 words or less clarifying the particular item.

The act was instituted to uphold the accuracy and privacy of an individual’s information in credit reports. It was also passed with the intention of curbing identity theft, an ever-growing crime. By reviewing one’s credit report each year, he or she could determine if any sort of identity theft had occurred.

Both acts help protect you by insuring the fairness of the lending industry while allowing you to take control of your credit history and ensure its accuracy. Maintaining good credit begins by learning all you can about how credit reporting works. By understanding these laws, you are taking a positive step in creating good credit for a stable financial future.

For online research visit
MortgageLoans

Various types of Credit Cards - Choose Yours

Types of Credit Cards
by Nan Wood

For people looking to get a credit card, it is important to note that there are many credit card products on the market. It is important to decide which type of credit card is right for you. Here are some tips.

Secured Credit Cards
Most credit cards are unsecured. You promise to pay the credit card company back and they give you a line of credit based upon on your past credit card history. However if you have no credit history or have a poor credit card history, secured credit cards are a great way to establish good credit. You usually open a bank account with the secured credit card company and depending on your account they will give you a credit card with a specific limit. This way, if you deposit $500 in the bank account and have a credit line of $500, the company does not have to worry if you default on the bill or not. They have your money in the account.

Rewards Programs
Some credit cards reward you for using their credit card with perks such as free miles, points for cash back, etc. These cards are a great way to save up miles or get cash back. However, before you sign up make sure you can use the rewards and make sure that the rewards are in a ratio that is acceptable for you to spend. You don’t want to spend $1,000 only to get back $10 in cash.

Nan is a business writer with an information and research site. visit
RealEstateLady

Cutting down on Expenses

Cutting Down on Expenses
by Nan Wood

If you own a small business, one of the most important things that you must do is keep costs down. The lower the costs, the more profits you can take in and the more you can reinvest in your business. Here are some tips on cutting down on your expenses.

Penny Wise, Pound Foolish. Don’t start cutting important expenses. While it may from time to time be important to do with out special purchases, do not cut expenses that will directly affect the quality of the product or service. Be smart with your cost saving procedures.

Each month analyze your business to see which areas are performing and which areas are not. You may be able to allocate resources from one area to another to either get all areas of your business running on all cylinders or cut the slack from one area to put all your resources in performing areas.

There are plenty of resources to help you cut down on expenses, but many people suggest that you go through all your expenses with a fine tooth comb and tackl new ways of doing business to streamline your operations. If you have a small business and are looking to get the most out of it, check out the above tips.

Credit Cards for your Business

Business Credit Cards
by Nan Wood

If you are a small business owner and sometimes require some short term funding, one of the best ways to accomplish this goal is with a business credit card. Business credit cards are extremely convenient for small businesses and in many cases essential for them to do business.

Many small businesses need to buy thousands of dollars worth of goods or services which will be reimbursed either in the next few days or within a months time, having the money to purchase inventory is extremely important and business credit cards are an easy way to accomplish this goal.

Most business credit cards work differently than unsecured consumer credit cards. For instance, instead of having a rotating credit limit which can be paid off over the course of a few months, most business credit cards such as American Express requires the business to pay off the entire balance at the end of the month. For most consumers, this would be a nightmare, but since many businesses have a different type of cash flow, it usually works out fine.

Many business credit cards usually cost the business an annual fee, plus other fees including interest. Besides the use of the card, many business credit cards come with lots of great services, such as concierge services, B2B directories and help locating legal advice or small business advice.