Personal Finance Blog

Illegal sales of securities are the main misleading scam used by fraudsters to extort money from honest people,   Recently a list of five fraudulent financial products commonly used in different countries are reported. Scam artists follow the news and economic trends. They attract investors by offering them the opportunity to protect themselves against economic uncertainty or be among the first to invest in new technologies that prove to be false or exaggerated.

The supply of securities that promise often misleading investors with guaranteed returns and fabulous with little or no risk is the number one scam. In addition, the crooks are rarely registered as advisers or dealers. The energy sector is also targeted by fraudsters, who are trying to attract investors by promising reserves of untapped oil and gas and new energy technologies, often using complex technical jargon to confuse the issue.

Fraud related to the market for gold and precious metals appear in third place. The high prices of precious metals and the promise to hold an asset “tangible” valued “never fall” are the gold and silver investments apparently safe. “Investors should be aware, however there is no guarantee, even in legitimate markets.

Affinity fraud or fraudulent sale of investments to members of a group, is also a process extremely profitable for scammers.  Investors should always make their decision after evaluating carefully the investment instead of relying on their relationship with their supervisor or the recommendations of friends and family.

Finally, foreign exchange transactions risks come in fifth place in the list. Since most investors do not know currency trading, the crooks take advantage of and use of jargon to confuse the novice investors and encourage them to make risky operations. In some fraud schemes, securities may be sold, but investors’ money is not invested as promised or is simply diverted.

written by Scott \\ tags: investment scams

When purchasing a new vehicle from a dealership it is good to be aware of some of the extra costs that can be added to the purchase price. One of the ways that dealerships make their money is by selling extended warranties. There are several different warranty options to choose from. Many car salespeople will try to get you to buy the most expensive warranty. This warranty cost is then added on to the cost of the car loan. When the warranty is included in the total cost of the car loan, it can add hundreds and even thousands of dollars to the total cost of the car. This is because the interest rate on car loans is charged on the total amount of the loan.

Try to steer clear of this option. It is possible to get financing at companies that specialize in car loans. It is easy to obtain car loans at moneysupermarket. You do not have to buy a warranty from the dealership. The dealer is simply the middleman and it is possible to buy a warranty directly from the issuer. Many dealers will try to sell expensive add-ons to their customers. When you purchase a vehicle it is usually a basic model with not much added in the way of options. All the extras like air-conditioning and automatic transmission will have to be paid for.

Many times, the dealership will charge a rather hefty fee for something that should not cost so much. They do this because they know that people are willing to pay to be comfortable in their cars. If you are living in a very warm climate, you will need to have air-conditioning in your car. Some dealers will try to convince the buyer that a sunroof is a desirable addition to the car. Tinted windows will cost extra and so will automatic windows. The dealership might try to sell you special treatments for the upholstery that will prevent spills from staining the seats.

They will also tell you of the importance of having the car rust-proofed before leaving the dealer yard. Another add-on they will try to sell you is to have your car protected with paint-shield.This is supposed to add a tough coat that prevents chips and nicks in the car paint. A better set of tires may be recommended as well. Car dealerships make a lot of money from these expensive add-ons. It is certainly nice to have an extended warranty on the vehicle, but not if that warranty price is added into the total cost of the loan. Paying car loan interest charges on a warranty adds substantially to the actual cost of that warranty. Many of the add-ons sound good to buyers who are anxious to keep their purchase as pristine as possible.

The fact is that as soon as the car leaves the dealership its value will already have gone down. This is one asset that does not appreciate with time. The question is whether all these protective measures are really worth it for an asset that depreciates over time anyway, no matter what you do to it.

written by Scott \\ tags: car financing, car loan

There are several types of current accounts that financial institutions offer that you can take advantage of, some of which you may not know much about. Although understanding the differences between banking accounts may be difficult at first, all account types tend to fall into one of the following categories: savings, checking, money market, certificates of deposit and no-frills accounts.

Savings accounts are well known and almost everyone with a checking account has one, even if they don’t utilize it enough. A savings account allows you to deposit funds and make withdrawals whenever you need. Some banks put limits on how many withdrawals you can request each month, although they’re generally easy to access without penalty. While you can’t access funds with a personal check, you can withdraw and deposit money via the teller or ATM.

Savings accounts are aimed at everyone and even someone who doesn’t know anything at all about investing can take advantage of a simple savings account.Some financial institutions may require a minimum balance, especially credit unions since your minimum balance is considered your share in the institution, but you can avoid monthly fees by maintaining this minimal balance.

Larger banks may charge a monthly fee regardless of the balance in your savings account, so be aware of your bank’s policies. A checking account is everyone’s primary method of withdrawing money. Everyone who earns a paycheck needs a checking account.

Checking accounts are easy to use because you can set up your paycheck to be directly deposited into your account, set up online bill pay and write checks to make purchases. Most financial institutions provide debit cards that are tied to your checking account, so you use them just like a personal check anytime you shop.

Customers can deposit and withdraw funds from checking as often or as little as they need without incurring penalties, although current accounts may be subject to overdraft fees if funds aren’t available. Money market accounts are higher interest-bearing accounts that require a minimum balance for the funds to start earning interest. This account is ideal for a first-time investor who wants something a little more advanced than basic savings. Keep in mind, however, that you will be limited to a few withdrawals per month with a money market account and each institution may have different policies and interest rates.

Certificates of Deposit, or CDs, are time-sensitive accounts. Perfect for investors, the account holder agrees to leave the funds in the CD for a specified amount of time. In turn, the bank will pay an agreed upon interest. Some institutions may allow you to withdraw interest as it’s accruing, but generally the total amount must be left in the CD until its maturity. If the money is taken out early, a penalty is charged.

No-frills accounts are the most basic banking accounts and these are ideal for anyone not interested in investing or earning interest. Institutions that offer no-frills accounts allow the account holder to cash checks and pay bills without having the fees of most current accounts. No-frills accounts are strict on deposit, withdrawal and check limits, so inquire about policies before signing up for a no-frills account. You may be better off opening a regular checking and savings account.

written by Scott \\ tags: best bank account

Most starting companies try to borrow money to begin a business. Aside from beginning businesses, established businesses are also always looking for financing options to solve cash flow problems. When clients only pay their invoices off over periods of 30 to 90 days it takes some time for them to earn their money and in the mean time they are struggling to stay afloat.

They still have daily expenses and things that they need cash on hand for. For smaller businesses it is especially tricky to get a bank loan. In these cases invoice factoring services are a great way to resolve the cash flow issues and get back on track.

The management team can then focus their time and energy on the operation of the company rather than having to worry about money issues such as paying their employees and utility bills on time.

If you were now wondering how invoice factoring works or what it is, then read on to get the answers you need. These days there are plenty of factoring companies in the market places to choose from. Most of the time, selling invoice offers has great benefits for a company.

One of the big benefits for the company is that they will not have to pay off a loan. They can focus on making profit instead of paying off a high interest rate. Factoring agreements are usually not as long as bank agreements tend to be.

A company will be able to receive money for their sale immediately, without having to wait around for a month or two. Invoice factoring gives a company more control over what they do with their cash. This is the best way to solve cash flow problems. They can set some aside, whereas if they get it all in one go they will likely have a lot of expenses that need to be paid off that they have been putting off.

You will also be free of the burden of collecting the money from your clients. The factoring companies or invoice discounting companies as they are sometimes called, will take care of all of that for you. Certain companies that buy invoices have different programs and services, and also funding abilities.

You will get the funds you need to run your business immediately and start to improve your business and operations. So forget trying to please the banks with background checks and countless forms, just use invoice factoring to finance your company.

written by Scott \\ tags: Invoice Factoring, outstanding bills