How to avoid January blues?

The way of celebrating Christmas may be different for different type of people but the common factor for everyone is the hiked spending. By January, most of the people would be worried about credit limit collapse and unpaid bills. How to avoid having January blues?

Budget

Set a concrete budget that would not eat up your whole credit limit. If the budget exceeds, try to minimize a few expenses or choose a different store to buy the presents.

KrisKringle

Kris Kringle is a best way to save in a very large family. With Kris Kringle, each person can buy a present for the other, thereby reducing the amount of money spent on presents.

Set limits

Set a limit with the number of items in the menu, number of friends to be called and the amount of money to be spent on presents, with your family.

Talk to experts

Talk to experts who are well versed in handling big Christmas celebrations, for advice. It can be your parents, financial advisors or friends. Find how they celebrate, where they buy and how they tackle the financial burden during celebration time. A few tips in the budget would help you avoid January blues.

Source: http://www.smh.com.au/money/avoiding-the-january-blues-20131123-2y2oq.html




Having a Name Taken Off a Bad Credit Report

Those with bad credit ratings or who have their name list on a bad credit report often face a major challenge when applying for new finance or seeking refinancing for loans. Sometimes this is due to minor credit issues. While it is not always possible to have one’s name taken off a bad credit report, there are steps that every consumer can take to ensure fairness.

According to Angus Luffman, general manager of consumer risk at Veda, those who are seeking to have their name removed from a bad credit report should start by obtaining a copy of their credit file.

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Record Low Interest Rates Fail to Boost Credit Spending

Recent figures have shown that the record low interest rates have encouraged more people to take out home loans but have not been successful in stimulating the other areas of the economy.

According to Janu Chan, an economist at St George, there is a possibility that the Reserve Bank of Australia will decide to reduce the cash rate further to counter consumer caution. Chan noted that housing had reacted more than other parts of the economy.

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Are bonds, a good tool for diversification?

Bonds are considered to be the safe spots, in a portfolio. However with the current scenario of the Treasury yield sliding down, can it still be considered as a good tool for diversification of portfolio?

Risk in bonds

The concept of using bonds as security is at stake. With the low interest rate, the Treasuries are not performing as usual. When the Federal Reserve shrinks, it will spike the yield and crush, the bond price. Thus, the long considered security about holding the bond, drains out.

Is it smart to sell the bonds?

The answer is an absolute no. In a brutal market, the drop in the bonds will be very less, when compared to the drop in other asset classes. In 2008, there was a decline of 37% in the index and in 2009 while there was a 15% decline in the long term government bonds. The highest was experienced in 1931 with a 43% loss.

It is to be understood that the Treasuries with short maturity dates are safer than long term ones. It is better to buy Treasuries with varying maturity dates or a mutual fund. The worst decline that was experienced by a one month Treasury security is 3.7%, in 1970.

Source: http://www.usatoday.com/story/money/columnist/krantz/2013/11/16/bonds-diversification-bubble-fed/3360597/


How Consumers Can Protect Themselves From Scams

In the age of the Internet, it is easier than ever for scammers to reach millions of consumers with fake offers designed to deprive consumers of private details, money, or sensitive information. Fortunately, the Brisbane Times provided these simple steps that everyone can take to reduce the risk of being scammed.

Types of Scams

Research suggests that around six million Australian are exposed to frauds or scams every year. Of these, 1.2 million become victims of fraud, losing a total of $1.4 billion each year. Scams can involve transferring money online, offers to get rich quick, lotteries, and email scams.

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3 Smart Tips for Improving Credit Ratings

Credit ratings are all important for those planning to apply for a home loan or some other type of loan. One’s credit history can be a major factor in having a loan approved or rejected. Those with blemishes on their credit history can use the following tips from the Economic Times to improve their credit rating and history.

Check Credit Report

Every credit-history repair begins with a credit-report check. The consumer should know what is on their credit history or report. Review the report for any errors, and make sure that any errors are rectified as soon as possible by contacting the credit agency directly.

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Consumers Warned Not to Overspend During Christmas Period

Dun & Bradstreet, the consumer credit bureau, has waned that financial stress could rise as the Christmas holiday period approaches. It is usual for consumer debts to accumulate during the end-of-year holiday period.

Dun & Bradstreet saw a 15% rise in debt referrals in January 2013, up from the last quarter. At the same time, the Consumer Financial Stress Index peaked at 24.9 points.

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