Debt annoyance theory

This theory of paying off debt has you look at what debts are bothering you the most. Do you hate that you are indebted to a family member? Do you worry that a friendship is in jeopardy because you owe someone money? Are you angry that a credit card issuer is changing terms, so you want to be shot of that creditor?

There are many reasons that a debt may be weighing on your mind. If you have a debt that is affecting your peace of mind beyond what other debts are doing to your well-being, perhaps that is the debt to pay off, before you tackle a different obligation with a higher interest rate or lower balance.

In the end, you have to do what is best for your situation, and your emotional state. If that means taking an approach that might be logical for reasons other than the numbers, so be it. That’s why it’s called personal finance.

Image source: quaziefoto via Flickr

Post from: Bizzia

1. Multiple accounts: With personal credit, multiple accounts, even if they are in good standing, can be detrimental. Business credit is different, though. Multiple active business credit accounts in good standing boost your business credit score.
2. Payment timeliness: One of the biggest factors in your business credit score is whether or not you pay on time. You get bonus points for paying early as well. With personal credit, paying late can hurt you, but early payments don’t help.
3. Ask vendors to report: While personal creditors have to report you good behavior to credit bureaus, vendors don’t have to. So ask your vendors if they report payment performance to business credit information providers. You can also self-report some of your company information.

Having good business credit is essential. Without the ability to keep cash moving through your organization, you can quickly run into trouble. Being able to obtain financing is important, so having good business credit is vital to the operation of your business.

Image source: Aidan Jones via Flickr

Post from: Bizzia

It has been a fun, interesting and educational tenure. The funniest moment would have to be receiving my first (and only) piece of what I call blog hate mail, which labeled me an “ignorant baby boomer.” Priceless.

The interesting and educational pieces came daily through research, comments and exchanges with readers.

Even though my b5media blog is coming to an end, I am still keeping busy and if you would like to keep up with me, here are a couple of tips:

Twitter – @tisasilver (Bear with me, I’m new to the whole “tweeting” business)

www.tisasilver.com - My web site with book related items, events, etc.

I also write for Investopedia and will begin writing for BET.com this week in conjunction with BET’s new trivia show “Pay It Off” which allows guests to win prizes and money to get out of debt. (Fridays at 10 PM EST)

To b5media – Thank you for giving me a venue to share my opinions and educational tips, as well as allowing me to occasionally engage in some shameless self promotion. Did I mention I have a book called The Time Value of Life? ;)

Seriously, thank you to all who subscribed, commented and shared links to my posts with others. I truly appreciate your time and participation. I hope you related to or learned something from my blog.

Farewell and happy investing to you, until next time…

(Photo by Ricardo Blackett)

Post from: Bizzia

According to TheStreet.com, over the past few years, the strategy has not only been quite profitable, but it has outperformed major benchmarks.

Photo by Fr Antunes, courtesy of flickr

There are approximately 100 faith-based mutual funds which hold a total of $31 billion in assets.

Similar to other socially responsible investing tools, these funds are more widely known for what they will not invest in, as opposed to what they will invest in.

Companies to avoid include alcohol, tobacco, gambling and adult entertainment. Some funds also avoid banks and insurance companies because they profit from debt (lending and interest). 

Aside from industries to avoid, some of the funds also stay away from companies with debt-laden balance sheets. Below, you will find a list of some faith-based mutual fund families.

Ave Maria Mutual Funds and LKCM Aquinas Funds (Catholic) – Catholic Values Fund (AVEMX) is up over 40 percent in the past year, versus 24 percent for the S&P 500.

Timothy Plan Funds (Advertised as “America’s first pro-life, pro-family, biblically-based mutual fund group.”) – Large/Midcap Growth Fund (TLGAX) is up over 30 percent in the past 12 months.

Amana Mutual Funds Trust (Islam) – In the past year, Amana’s Trust Growth Fund (AMAGX) is up over 30 percent.

MMA Praxis Mutual Funds (Mennonite) – Small Cap Fund (MMSCX) is up 25 percent year-to-date.

New Covenant Funds (Presbyterian) – Growth Fund (NCGFX) is up 30 percent.

Each fund family has more than one fund, I just picked one fund randomly from each family and all of them happened to provide higher returns than the S&P 500 over the past year. For more information on faith-based mutual funds, visit about.com.

Post from: Bizzia

Before you sign up for something free, make sure you check the fine print. You should also be wary when you are asked for payment information. If you have to provide a credit card number or some other payment information before you can get your free product or service, that is a dead give away that you are agreeing to sign up for a recurring service. If you don’t remember to cancel, your “free” product or service will probably turn out to be nothing of the sort.

Image source: Daylife

Post from: Bizzia

The consumer confidence data is also having an effect on how companies view the possibility of a rebound in spending for the holidays. Many businesses have been hoping that holiday shopping would help get things going. However, with consumers still wary about economic recovery, it means that they are less likely to go on much of a spending spree for the holidays. And that means that many companies are already bracing for a disappointing Christmas shopping season.

Consumer confidence has been affected in large part by employment concerns. The labor market has remained stubbornly weak, and that means that consumers, who see the realities of lay-offs in their daily lives, are concerned about the way things are going. Until more jobs are created, consumers are likely to remain wary of economic recovery — and of spending money.

Image source: Daylife

Post from: Bizzia

Photo by danny sullivan, courtesy of flickr

What went wrong?

According to Reuters, the company’s outlook took a turn for the worse, execs are predicting Q4 revenues will come in well below the Street’s expectations.

The company blamed the decrease in revenue on its transition to new advertising technology.

Up until today, 2009 had been a banner year for shares of Baidu. The stock had more than doubled in six months. BIDU broke the $400 per share mark last month for the first time 2007, and hit a high earlier today at $439.90.

Unfortunately for shareholders, BIDU broke through the $400 mark again tonight, and this time it was from the upside.

Baidu has been nicknamed “The Chinese Google Killer.” I’m not so sure tonight’s punishment fits the crime. A lowered outlook is never a good sign, but sometimes the signs are misread. We’ll see if that was the case with BIDU in the days to come.

Post from: Bizzia

While one might argue that this was a fairly obvious consequence, the fact remains that Congress gave credit card issuers plenty of time to take advantage of consumers before the rules take effect. But now, as consumers protest interest rate hikes, Congress is considering moving up the time table for implementation. And Senator Christopher Dodd is proposing an interest rate freeze.

While an interest rate freeze would be nice, the fact of the matter is that most of the damage has already been done for most people. The freeze would bridge the gap between now, and when the Credit CARD Act goes into effect, whether that ends up being December or February, forcing credit card issuers to justify interest rate increases.

Image source: Daylife

Post from: Bizzia

However, now that it appears that things are snagging with regard to an extension of the first time home buyer tax credit, there are concerns about the cash flow these companies will enjoy. Indeed, without new loans to give out — quality loans from new borrowers — there are concerns about financial companies.

Companies that are big into mortgages, such as Freddie Mac, Fannie Mae, Bank of America and Genworth Financial are some of the biggest losers today as investors show their concern. It will be interesting to see how things play out going forward. However, without continued support to the housing market through some sort of a tax credit, it is likely that corporate finance will continue to struggle.

Image credit: Brian Katt via Wikimedia Commons

Post from: Bizzia

Photo by epicharmus, courtesy of flickr

Is business booming or what?

I’m leaning to the “or what” side.

Things are definitely better than they were around this time last year, but the number of companies beating the street’s estimates is uncanny. Makes you wonder how the expectations are formed.

Ultimately, they are generated from within the company and companies know that investors don’t like to be disappointed. 

Earnings surprises, good and bad, often offer a bounce or bust, but if you invest on news of such surprises and the market has overreacted you could be in for a surprise yourself: a loss.

Expectations aren’t everything, and executives know that it is better to aim low and overachieve rather than to aim high and miss. So, the next time a company beats the Street, be mindful of how much, or how little, is required in order for the company to do so.

Post from: Bizzia